Linea Directa Aseguradora, S.A.

Good morning, everyone, and thank you for joining us today. We are pleased to welcome you to Línea Directa's first half 2026 results presentation. I am joined by our CFO, Carlos Rodriguez Ugarte, who will take you through the main highlights of the period, followed by the Q&A session. Carlos, over to you.

Thank you very much, Beatriz, and good morning to everyone on the call. We are pleased to present a strong first half for Linea Directa, combining growth, improved technical margins, and a robust solvency position. Let me start with the key numbers for the period shown on the first slide of the deck. Gross return premiums reached 609.3 million euros, up 9.2% year-on-year, with all business lines contributing to our growth. The portfolio stood at 3.86 million risk, 7.8% higher than in June 2025. Thank you very much. Net profit increased by 19% to 52.1 million euros, supported by higher volumes, better underwriting performance and efficiency. Return on equity stood at 23.3%, while the solvency-to-ratio qualified to 196.3%, already reflecting the 18 million first interim dividend for the year. I will now go through the main drivers of this first half performance. On page number 7, premiums increased by 9.2%, supported by growth across the group. The customer portfolio also expanded by 7.8% year-on-year, with around 60,000 additional risks added in the second quarter alone. This growth was accomplished by an even further improvement in technical profitability, The combined ratio stood at 91.1% and improved farther to 19.6% in the standalone second quarter. The expense ratio improved to 20.2%, reflecting scale benefits, operating discipline, and continued efficiency gains. The investment result reached €21.8 million, driven by higher income from both the fixed income and equity portfolios. As a result, profit after taxes reached €52.1 million at 19% year-on-year. Turning to volumes, motor remained the main contributor While health and emerging businesses continue to show a strong momentum. Moving to page number 9, the combined ratio reflects the balance between underwriting discipline, claims frequency control, and a large operating base. On the loss ratio, performance remains well controlled across the main business lines, supported by an excellent second quarter performance in both motor and home. On the strength ratio, the improvement reflects increasing scale, operating leverage and productivity gains, while maintaining investment in the capabilities that support future growth. Efficiency remains a structural strength of the model and a key lever for protecting profitability as the business continues to grow. Now, I would like to move on to a more detailed breakdown of my line of business. In Moton, premiums exceed 490 million euros, growing by 9.8% year on year. The portfolio added more than 222,000 policies over the last 12 months, including 59,000 in the second quarter standalone. Technical profitability remained excellent. with a combined ratio of 91.1% in the first half, 0.9 percentage points better year-on-year, and 19.8% in the standalone second quarter. The home line delivered moderate growth, with premiums up 2% and the portfolio increasing 3.7% year-on-year. Profitability in the segment was particularly strong. with a combined ratio of 86.6% in the first half, improving by 2.3 percentage points and 83.9% in the standalone second quarter. Let's move to page number 12. Health maintained strong commercial traction. Premiums increased by 17.7% to 28.9 million euros, while the portfolio reached more than 128,000 policies, 10.4% above June 2025. We continue to shift toward more comprehensive products, with complete and specialty products now accounting for almost 68% of the portfolio. From a technical perspective, the combined ratio improved by 8.6% to 125.1%, showing gradual progress towards technical break-even. Moving to next page, the financial investment result increased by 5.2%, mainly driven by higher income in both the fixed income and equity portfolios. By contrast, the real estate contribution reflects the temporary impact of the renovation of one building. Works are expected to be completed by year-end 2026, with rental income resuming in June 2027 under updated market conditions. Taking both effects together, the net investment result declined by 1.8%. Excluding this one of impact, it will have increased by 5%. Page 14. The investment portfolio remains heavily balanced in fixed income, with a measured reduction in equity exposure during the period. This allocation reflects the group-disciplined investment approach, focused on preserving financial strength while maintaining a prudent risk profile. The portfolio delivered a return of 275 basis points, while the fixed income portfolio duration stood at 3.5 years. Turning to Solvency, the Solvency II ratio stood at 196.3% at the end of June, reflecting a very strong capital position. Own funds increased mainly as a result of solid organic capital generation during the first half and the positive revaluation of the investment portfolio to equity. This increase was partially observed by the deduction of the €80 million interim dividend. On the STR, market risk reflects lower equity exposure offset by the increase in the symmetric adjustment, while non-life, health, and operational risk evolved in line with business growth. Counter-party risk also increased, mainly due to higher health receivables and insurance recoverables. To conclude, first half results show that Linear Directa continues to combine growth with technical discipline, efficiency, and a very strong balance sheet. Looking ahead, our priorities remain crystal clear, maintaining profitability growth, protect technical margins, and continue leveraging efficiency as a core competitive advantage. I will now hand the call over to Beatriz to begin the Q&A sessions.

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