Linea Directa Aseguradora, S.A.

Good morning to all of you and thank you for joining us today. Welcome to Linea Directa's full year 2025 results conference call. My name is Beatriz Izar and I am head of investor relations. Presenting today will be our CFO, Carlos Rodríguez Ugarte. After the presentation, we will open the call for a Q&A session. I will now hand the floor over to Carlos.

Thank you very much, Beatriz, and good morning to all of you. 2025 has been an exceptional year for Linear Director. Please let me guide you through the financial highlights presented on the first slide of the deck. Net income increased by 33.5%, reaching 86 million euros. This strong result reflects a combination of growth and profitability. We delivered top line growth of 11.3%, an improvement of 2.1 percentage points in the combined ratio compared with last year, that is, a combined ratio of 92.6%. Our customer portfolio increased by a superb 8.5%, reaching 3.73 million clients. We added more than 290,000 clients to our portfolio, making the highest annual growth in our history. Return on equity rose to 22.9%, underscoring the efficiency of our business model. Finally, the strong results and solid solvency position have led the Board to propose a complementary dividend of €50 million to the upcoming AGM. After accounting for this dividend, the solvency ratio stands at 182.6%. Now, if we move to the next slide, we consistently emphasize the importance of efficiency in our business model. It enables us to offer more competitive prices to our customers. to operate with healthy combined ratios, and lastly, efficiency is a critical driver of service quality. The digitalization of service continues to deliver outstanding results, with all indicators surpassing the levels achieved at the end of last year. This includes strong growth in digital roadside assistance requests, online claims submissions in both motor and home, and the use of digital supplements. Another key KPI is the traffic generated through our app and website, which increased by 17%. Digital interactions now represent 2.7 times more contacts than traditional telephone calls. The digital chat launched in 2024 has grown by 68%, and AI now resolves more than 64% of incoming inquiries. Digital sales have grown exponentially, reaching 9% of all new business at the end of 2025. It is important to highlight that these sales are fully digital and complete without any human intervention. These results differ from digital origination, which represents more than two-thirds of our overall portfolio. Finally, 91% of our customers interact with us digitally at least once a year. This journey is also driven a broader transformation to unlock the full potential of our direct model. We continue to strengthen our multi-product offering while keeping the customer firmly at the center, delivering quality, service, transparency, and competitive pricing. Through simple, user-friendly and comprehensive new digital assets, we aim to make our customers' lives easier and to reinforce Linea Directa as the brand people choose and want to stay with. Now let's move on to a more detailed review of the 2025 results. On page 9, the message remains fully aligned with what we have been highlighting in previous quarters. We continue to deliver excellent top-line growth complemented by strong retention levels. This performance reflects our increased customer loyalty and our ability to attract new clients to the brand. The combined ratio was very solid for the full year at 92.6%, and exceptionally strong in the fourth quarter at 19.4%. Financial result was up 5.4%, with higher income from the bond portfolio and the revaluation of investment funds. And all of this resulted in a profit after tax of 85.7 million euros, an increase of 33.5% compared with 2024. In terms of business volumes and customers, our line of businesses reported significant growth, with Motor standing out by adding more than 215,000 new clients during the year. Growth was solid across the board, and our newer products also expanded considerably. Moving to page 11, the evolution of the combined ratio remains solid. The loss ratio improved by one point, supported by prudent risk underwriting. At the same time, we continue to enhance operational efficiency through digitalization, leading to a further 1.1 point reduction in the expense ratio. We continue to invest in data and technology capabilities that enhance both efficiency and customer experience. We view the expense ratio as a key competitive advantage, and it remains a central focus of our operational strategy. Now I would like to move on to a more detailed breakdown by line of businesses. In motor, the year delivered excellent results, with premiums increasing 11.8% year-on-year and 12% in the quarter. We outperformed the market by 3.5 percentage points. The combined ratio improved by 2 points, supported by a notable correction in the fourth quarter. The sector, however, deteriorates its combined ratio to 98.2%, 99.3% on a standalone basis in the fourth quarter. For its part, the home line of business delivered steady growth, with premiums increasing by 6.3%. In 2025, the line achieved an all-time high in profitability, posting combined ratios below 90 in every quarter, including an exceptional 88.4% in the last quarter of the year. Moving to page 14, the health line delivered a strong growth of 14.7%. We continue to make steady progress in improving the product mix, with specialist and comprehensive products now accounting for 67% of the business, compared with 62% in December 2024. On the technical side, we saw a very strong improvement in the combined ratio, down 14.6 percentage points, bringing it closer to target levels. And the writing remains prudent, with claims frequency well contained. The loss ratio for the year was 79.6%, broadly in line with a sector average of 79.7%. The financial result increased by 5.4%, supported, as I mentioned before, by higher income from bonds and a positive mark-to-market performance of our investment funds. Regarding the investment portfolio, its composition remained largely stable throughout the year, with the portfolio, excluding cash, increasing to 1.2 billion euros, supported by business growth. Average return stood at 312 basis points, while the average reinvestment yield of the fixed income portfolio reached 241 basis points. Portfolio duration is 3.86 years. On our solvency position, the solvency margin stood at 183, taking into account the complementary dividend that the Board will propose to the upcoming AGM. Moving to the next page, the SCR is mainly driven by underwriting risk, which increased in line with business growth, by market risk, reflecting interest rate and spread movements, and finally by the significant rise in the symmetrical adjustment during the year. To conclude, the 2025 results reflect exceptional growth and strong profitability. We entered 2026 from a very robust position, fully focused on driving future growth in a profitable and sustainable manner. I will now hand the call over to Beatriz to begin the Q&A session. Thank you very much.

Thank you, Carlos. We will now begin with the questions received from the conference call.