Skagi (SKAGI) investor relations material

Executive summary

• Core profits before tax tripled year-over-year, driven by strong operational improvements in insurance and financial services.

• Consolidated profit for 2025 was ISK 1,902 million, with a return on equity of 8.6%.

• Best insurance result in VÍS history, with insurance profits doubling and revenue growth outpacing the market.

• Financial services revenues grew 36% year-over-year, with significant profit increases and successful integration of acquired businesses.

• Good progress in merger discussions with Íslandsbanki, with anticipated synergies and enhanced capabilities.

Financial highlights

• Full-year insurance service result rose 101% to 2,970m ISK; insurance revenue up 9.5% to 31,959m ISK.

• Financial services income increased 36% to 3,188m ISK; pre-tax profit from core operations up 3x to 2,417m ISK.

• Net operating income grew 8% to 6,148m ISK; operating expenses rose 18% to 3,508m ISK.

• Group profit after tax fell 16% to 1,902m ISK, with ROE at 8.6% (down from 10.8%).

• Investment income return was 5.2%, below the 10% target and long-term average.

Outlook and guidance

• 2026 targets include combined ratio below 93.5%, financial services revenue above 3,500m ISK, and AuM over 270bn ISK.

• Updated investment return target for 2026 is 9.5%.

• Ongoing focus on cost measures, synergies, and further scale economies in financial services.

• Dividend proposal for 2025 is ISK 760 million, or 40% of after-tax profit.