Skagi (SKAGI) Q1 2025 earnings summary

Executive summary

• Core revenue grew 12% year-over-year in Q1 2025, reaching ISK 8,311m, with insurance and financial services showing strong momentum.

• Group reported a net loss of ISK 1,353m for Q1 2025, impacted by negative investment returns and one-off merger expenses.

• Insurance business showed operational improvement, with revenue up 10.9% and life/health insurance up 10.8% year-over-year.

• Financial services net income grew 25% year-over-year, reaching ISK 780m, but profitability was affected by merger costs.

• Investment activities suffered due to weak equity markets, with a -1.1% return and ISK 1,063m drawdown in listed equities.

Financial highlights

• Group profit after tax was -ISK 1,353m, down from ISK 136m in Q1 2024.

• Insurance revenues increased 10.9% year-over-year to ISK 7,532m.

• Net financial income was -ISK 1,098m, a significant decline from ISK 499m in Q1 2024.

• Basic and diluted EPS was -0.71, compared to 0.07 in Q1 2024.

• Cash and cash equivalents increased to ISK 3,091m from ISK 2,322m at year-end.

Outlook and guidance

• Preparation for a partnership with Íslandsbanki is progressing.

• Target combined ratio for 2025 is below 94% (range 93-96%).

• Net financial services income expected above ISK 3,100m (range 2,900–3,500m).

• Expected return on insurance investment assets is 10% for the year.

• Updated financial reporting will emphasize timely, concise disclosures and business unit breakdowns.