March 28, 2024

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Línea Directa earned 110 million in 2021, 18.3% less, despite record premium income |  comp

Línea Directa earned 110 million in 2021, 18.3% less, despite record premium income | comp

Línea Directa Aseguradora posted a net profit of €110.1 million in 2021, its first year as a publicly listed company, 18.3% lower than in 2020, in the pandemic, but 2.6% higher than in 2019, before the arrival of Covid-19. The company reported this Monday to the National Securities Exchange Commission (CNMV).

The insurance company’s income from premiums increased by 1% in 2021 and exceeded 907 million euros, a record in 26 years of the company’s activity, thanks to the “strong” growth rate in policies, which reached 3.34 million customers, by 4% more.

The company explained that this growth in premiums depends on the increase in the number of policyholders in all areas of business, especially in the home and health, and on its “ability to maintain the portfolio.”

The insurance company’s net sales increased by 1.3% last year to 574 thousand policies, and the increase in the portfolio amounted to more than 130 thousand policyholders, an increase of 26.6% over those recorded in 2020.

Thus, the number of Línea Directa Aseguradora customers increased by 4% in 2021, surpassing 3.34 million policyholders.

With all this, the group’s profit before taxes amounted to 145.2 million euros, and a net profit of 110.1 million, thus maintaining its profitability level at 30.4%, “one of the highest in the sector”, according to the insurance company.

The CEO of the company, Patricia Aiwela, highlighted the “excellent” results obtained during the first year of listing on the stock exchange: “It is the highest in history in terms of excellent income and profits, 2.6% more than in 2019, which is really commendable if We took into account the opposite market situation.”

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Dividend

The company’s board of directors proposed to the general meeting of shareholders a supplemental dividend of €0.020 per share of €21.5 million.

With this new payment, which will be paid out in March, the total shareholder bonus charged to the 2021 dividend will reach €99.1 million, implying a 90% payout and a 5.7% dividend yield.

After this supplementary payment in March, the company’s solvency margin was at 186%, a comfortable level and above the regulatory minimum.

By subsidiaries, in automobiles accounting for 82% of the business, Group revenue was €748.1 million (-0.9%, the same as the market decline). According to the company, this slight decline was framed in the context of high competition as the sale of used vehicles, linked to more competitive average premiums, replaced the poor registration of new vehicles.

Similarly, the company’s income in the home segment exceeded €131.2 million, representing an increase of 8.8% for the year, 3.9 percentage points more than the segment average (+4, 9%), and weighing on the total group. Business is now close to 15%.

In Health, the branch in which the group operates under the Vivaz brand, the company reached the first stage by exceeding, in just over four years of activity, 100,000 policyholders, after registration in 2021 a growth in customers of 17, 5% , up to 105,000.

This increase in the portfolio translated into a 21.2% increase in revenue from premiums in this line of business, to €26.4 million.