Linea Directa Aseguradora, S.A.

Good morning, everyone, and thank you for joining us today. Welcome to Línea Directa's first quarter 2026 results conference call. My name is Beatriz Izar, Head of Investor Relations. Joining me today is our CFO, Carlos Rodríguez Huarte, who will lead this presentation. This will be followed by a Q&A session. With that, I will now turn the call over to Carlos.

Thank you very much, Beatriz, and good morning to everyone on the call. We are very pleased to report another excellent set of results. Please let me guide you through the financial highlights presented on the first slide of the deck. We delivered top-line growth of 10.2%, nearly two times the non-line market growth of 5.36%. This solid momentum was achieved while maintaining an excellent combined ratio at 91.7%. Our customer portfolio reached 3.8 million clients, adding 72,000 in the first quarter in 2026, representing a 9.9 quarter-on-quarter increase. Net income grew by 12.3% to 23.4 million euros, reflecting a strong combination of growth and profitability. Return on equity stood at 22.5%, underscoring the efficiency of our business model And finally, solvency ratio was very strong, reaching 190.6%. Now, let's move on to a more detailed review of the quarterly results. As shown on page 7, the message remains consistent with prior quarters. A strong top-line growth of 10.2%, supported by high retention, reflecting increased customer loyalty, and continued new customer acquisition. Technical result was up 20.1% to 22.9 million euros. The combined ratio was very solid for the first quarter at 91.7%, with an exceptional expense ratio. The financial result was affected by mark-to-market movements in equity mutual funds in a volatile market environment. although the overall impact was limited to less than 1 million euros. And all of this resulted in a profit after taxes of 23.4 million euros, up 12.3%. In terms of business volumes and customers, all line of businesses reported significant growth by adding 72,000 new clients in the quarter. Motor and health, together with developing new business lines, stood out during the period. Moving to page 9, the combined ratio remained very solid. On the loss ratio side, results were influenced by a temporary increase in the windshield replacement frequency, reflecting the impact of poorer road conditions following the first quarter storms. On the expense ratio, continued improvements were driven by greater scale and enhanced operating productivity, demonstrating discipline efficiency rather than cost reduction. That said, some seasonality benefits this ratio in the first quarter, which should be taken into account when interpreting the performance. From 2026 to 2028, we will continue to invest in technology capabilities that will improve both operational efficiency and customer experience. The expense ratio remains a key source of competitive advantage and a central pillar of our operational strategy. Now I would like to move on to a more detailed breakdown by line of business. In motor, the year delivered excellent results, with premium increasing 10.6%. We outperformed the market by 3.2 percentage points. We added more than 60,000 clients in the quarter, reflecting continued growth momentum. The combined ratio improved by half a point. well ahead of the latest industry figure of 99.3% in the last quarter of 2025. The home line of business delivered a steady growth, with premiums increasing by 2.6%. Performance in this segment remains exceptional, with a combined ratio of 89.4% in the quarter and improvement of 0.5 percentage points. Moving to page 12, the health line delivered a strong growth of 20.1%, the portfolio increased by 8.7%, with particularly strong momentum in the more comprehensive coverage, which grew by 9.6%. From a technical perspective, performance improved significantly, with the combined ratio down 9 percentage points year on year, and the writing discipline remains strong, and loss ratio continues to be well-contained. Moving to the next page, financial results declined by 7.2%, primarily reflecting market-to-market movements in investment funds accounted for through the P&L. Excluding this market-related volatility, financial results will have increased by 3.4%. Turning to page 14, the composition of the investment portfolio remains largely stable during the first quarter, with the exception of a slight reduction in equity exposure. The portfolio, excluding cash, increased to 1.2 billion euros, supported by continued business growth. Average portfolio return stood at 278 basis points, while the average reimbursement yield of the fixed income portfolio reached 258 basis points. Portfolio ratio remains well balanced at 3.79 years. Turning to our solvency position, the solvency ratio remained very strong at 191%, despite the negative impact from fair value movements in the available for sale portfolio during the quarter. In addition, higher average premiums on tacit renewals provide support to the premium best estimate liability, complemented by increasing the risk-free discounting curve during the period. Moving to the next page, the SCR is primarily driven by underwriting risk, which is almost fully offset by a reduction in market risk, This reduction reflects lower equity exposure and a decline in the regulatory symmetric adjustment. To conclude, first quarter results continue the momentum seen throughout the year 2025, delivering exceptional growth and strong profitability. As we progress through 2026, our focus remains on delivering future growth that is both profitable and efficiency-driven. I will now hand the call over to Beatriz to begin the Q&A session.

Thank you, Carlos. Our line is now open for questions.