Línea Directa reduces its losses in the year to 14.7 million euros

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Línea Directa Aseguradora has achieved slightly reduce losses accumulated until June and thus closes the third quarter of the year with red numbers of 14.7 million euros, after earning 0.9 million during the last three months.

The total number of Premium income stood at 731.9 million euros as of September 30, 3% more than in the same period of the previous year, driven by the growth of billing in the three business lines (motor, home and health).

The company explains that this improvement is supported in a significant reduction in accident costs, especially in the motor sector, in an increase in billing and due to the “rigorous measures” of pricing, subscription and management efficiency. For the group, the cost of claims falls into negative territory for the first time, to -6.4%. In the specific case of the auto part, this drop is three points higher, up to 9.4%, and this is especially relevant because it represents more than 80% of the group’s profit.

The increase in the price of the premium, of 4.3% on average, has followed the line already set by the company at the beginning of the year and that is to prioritize profitability over volumes. This means that the number of clients has fallen by 2.4%, to 3.36 million policies. The insurer explains that it has made an individualized adjustment of rates to risk given the current inflationary situation, as well as a tightening of underwriting. “The effect of both measures is already reflected in the progressive growth of the premiums charged to the current year, which are computed in the income statement throughout the 12 months of the life of the contract,” adds the company.

The CEO of Línea Directa, Patricia Ayuela, points out that the results “begin to reflect” the positive effect of the strategy implemented by the company, which has led to a “substantial improvement in margins in the third quarter, especially in the motor line of business.”

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