Línea Directa fails to recover in terms of volume. The insurer, which suffered losses of 4.4 million euros in 2023 – despite closing the gap in the second part of the year -, He chose to prioritize profitability at the cost of losing customers.
In this way, the modus operandi of the company was to carry out an “individual-level review”, so the policyholders with the highest accident rate suffered price increases, which caused them to look for other alternatives. Up to 150,000 customers left if we compare the peak with the worst moment (first quarter of 2023 and 2024). The majority of them (130,000 people) had automobile insurance with the company, which is the main product, since today it accounts for just over 80% of the turnover and 74% of the insured.
So far this year, the insurer led by Patricia Ayuela has managed to regain profits, and until September it has accumulated a result of 40.7 million euros compared to the 12.4 million losses in the same period last year.
Given the evident economic recovery, it is now seeking to gain the portfolio it lost at the time, but the pace remains slow. Right now there are 3.37 million insured with Línea Directa, when until March of the previous year that figure was practically 3.5 millionso the gap between both moments has managed to reduce by 100,000 clients, The advance this year being 1% in cars and 0.7% in homes.
The pace of recovery of this indicator is not as great as the fall. Between these two products, from March 2023 until now there are 4.6% fewer vehicle policyholders and 3.3% fewer household policyholders. The portfolio is only saved in health, which has remained on the rise regardless of the economic situation, but it only represents 3% of the total.
“Record” growth in sales
From Línea Directa they inform this medium that, despite the drop in the portfolio last year, this year it is recovering at an increasingly faster pace thanks to the increase in sales.
“This year we are recording record monthly sales figures, and last October we recorded the highest figure in the company’s history,” explains the company. Specifically, at home they have managed to exceed double digits, with a growth of 12% between January and November compared to the previous year, which they attribute to the good performance of the campaign. ‘Car+house formula’, launched at the beginning of 2023 and this year has been renewed, including anti-squatting insurance, as well as health insurance.
In the conference with analysts, Carlos Rodríguez, financial director of Línea Directa, clarified that autos grew in the third quarter by “almost 20,000 customers”, so he stressed that this “should be the trend for the future.” However, he admitted that the rhythm at home “is not the same”, revealing a growth in the quarter of 3,000 insured people. “We have improved, without a doubt, but We will probably have to accelerate the pace a little more in home insurance. Even so, I think we will continue to grow, with an even better trend towards the end of the year,” Rodríguez explained.
The insurer justifies that the home insurance industry “is very concentrated in bancassurance due to the marketing of this insurance with mortgages,” but it prides itself on being the “leading” company in the direct sales market for this product.
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