Línea Directa has closed the 2023 financial year with losses of 4.4 million euros as a result of the increase in provision costs in all business lines, which has had an impact on the margins of the insurance sector. As reported to the National Securities Market Commission (CNMV), the combined ratio was slightly above 104%, 8.2% percentage points more compared to the end of the 2022 financial year.
In this sense, the accident rate has reached 81.2%, 8.5% more points showing the effects of the increase in atmospheric phenomena and the upward update of the injury scale. The firm chaired by Patricia Ayuela has obtained premium income of 2.8%, up to 973.3 million after a year in which the company has prioritized profitability over growth in volumes, which have turned into a decline of the portfolio to 3.3 million clients (-4.2%).
By business lines, premiums issued in automobiles have exceeded 792.6 million, 2.6% more, with a portfolio of insured users of 2.7 million, while income has grown by 3.3%. For its part, the premiums issued by the Home line, with 727,000 insured, increased by 4.0%, to 149.4 million, influenced by the brake on the sale of homes, although it has gained 9.4% further. On the other hand, in health, a segment in which they have operated since September under the Línea Directa brand, they have recorded a growth in policies of 7.1%, up to 117,000 insured, while the premiums issued amount to 30.4 million (+4.5 %), with 5.4% more insurance income.
“2023 has been a complex year in which cost inflation has continued to condition the profitability of the insurance sector and has affected Línea Directa’s results. However, what we have carried out to face this situation, prioritizing recovery of margins and promoting efficiency, is already reflected in our accounts,” says the president of the group, Patricia Ayuela.
The insurer highlights that this strategy has allowed them to return to profits during the last two stagnant quarters. Between June and December the insurer has recorded a profit of 10.7 million. Of this amount, 8.1 million were counted during the last three months.
