Skagi (SKAGI) Q2 2025 earnings summary

Executive summary

• Achieved best quarterly insurance results since listing, with 8.9% YoY insurance revenue growth in Q2 2025 and strong operational metrics.

• Group profit reached ISK 972m in Q2, but a loss of ISK 380m was recorded in 1H 2025 due to weak equity markets.

• Financial services revenue grew 120% YoY in Q2 and 58% in 1H 2025, with focus on scaling profitability.

• Investment income was muted, with a 1.2% return in Q2 and a loss of ISK 1,184m in the listed equity portfolio in 1H 2025.

• Group assets at period end were ISK 82bn; equity stood at ISK 21.4bn.

Financial highlights

• Core revenue for Q2 2025 was ISK 8,587m, up 14% YoY.

• Group profit before tax was ISK 1,267m in Q2, up 342% YoY; profit after tax was ISK 972m, up 606% YoY.

• Insurance revenue up 9.9% YoY and life/health insurance up 11.5% YoY in 1H 2025.

• Combined ratio improved to 80.9% in Q2 and 90.6% in 1H 2025.

• Net financial income was negative ISK 1,241m in 1H 2025.

Outlook and guidance

• Combined ratio guidance for 2025 updated to 92–95% due to strong performance.

• Financial services revenue guidance for 2025 set at ISK 2.9–3.5bn; AuM target of ISK 250bn for 2026.

• Expected return on insurance investment assets is 10%.

• All long-term targets on track, with focus on further growth and profitability.