Linea Directa Aseguradora, S.A.

Good morning to all of you, and thank you for joining the call today. Welcome to Linea Directa's first half results conference call. Presenting today is Carlos Rodriguez Ugarte, our CFO. And after the presentation, as usual, we'll open up the call to Q&A. And with these words, over to you, Carlos.

Thank you very much, Beatriz, and good morning to everybody on the call. We are very pleased to deliver an excellent set of results for the first half of the year. As always, I would like to start by commenting the key figures on page number five. In a nutshell, we are delivering high organic growth and profitability, excellent return on equity, and a strong balance sheet. Business growth accelerated to 10.8%, with motor at 11%, home at 7.5%, and health at 13.6%. The portfolio of customers grew in more than 241,000 policies to 3.58 million. Combined ratio stood at 92.3%, down 3.2 percentage points. Net income rose to 43.8 million euros. Return on average equity rose to 23%. And finally, solvency increased to 193.2%. Moving to page number six. Here the message I would like to convey is consistent with what we said in 2024. Further acceleration in the top line and sound retention levels by increasing the loyalty of our customers and attracting new ones to our brand. We posted a better underwriting result from strong revenue growth and sound six months combined ratio with further improvement in claims and expenses. The evolution of the financial result was remarkable, up 33.9% with higher income from the bond and equity portfolio and the significant evaluation of investment funds. And all things together led us to a profit after taxes of 43.8 million euros, up 72% over the six months of 2024. Excuse me. As with regard business volumes and clients, all line of businesses reported significant growth, worthwhile to mention the motor segment with 62,000 new clients in the second quarter standalone. In health, our more comprehensive products grew by 13.6%. Moving to page number eight, the positive evolution on the combined ratio was very solid. from 95.5% in the first half of 2024 to 92.3% as of June 2025, down 3.2 percentage points. Once again, I would like to reinforce key messages, careful subscription and tight cost control. We are continuously working towards automatic processing, streamline the business in general, as well as improving our digital setup. We consider the expense ratio to be a key competitive advantage. Now I would like to move to a more detailed explanation by line of businesses. In motor, we further accelerated growth in the second quarter with premiums up 11% on the back of improved sales and retention. We were able to exceed the market growth in more than two percentage points. The combined ratio stood at an excellent 92% down 3.6 percentage points as compared to the first half of 2024. Also, the home line of business posted significant growth with premiums up 7.5% in the first half of the year. The combined ratio continues to be exceptional at 88.9%. In page number 11, health posted growth of 13.6%. The figures are benefiting from more comprehensive products. Specialists and complete products now account for more than 64% of the portfolio, which compares to 57% as of last year. On the technical side, loss ratio was driven by the increase in hospital scales. Conversely, frequencies are declining. Moving to page number 12, financial result was up 33.9%, driven mainly by the increase in the mark-to-market of mutual funds. We also posted an increase in income in the bond and equity portfolios. Also, let's remind last year we had an impairment of 1.3 million euros in the corporate bond French company Atos. As with regard to the composition of the investment portfolio, government bonds gained further weight in the second quarter with longer duration, which rose to four years. The underlying return of the portfolio stands at 322 basis points, and average reinvestment yield stood at 261 basis points in the quarter. On our solvency position, solvency margin rose to 193.2%, which compares to 180.2% in the first three months of the year. The latter has been already adjusted for the first interim dividend of 2025 of 50 million euros. Own funds were driven by the result of the quarter, the positive development in the available for sale portfolio and the best estimate of premiums. SCR increase was a function of market risk on the back of deterioration of the symmetrical adjustment and spread risk. Underwriting risk grew reflecting business growth. To conclude, June results were strong. We delivered very consistent results. We are also developing the necessary basis for our future ambitions and much is expected from us in the upcoming years. I will now hand the call over to Beatriz to begin the Q&A session.

Thank you, Carlos. We'll begin with the questions received from the conference call.