Skagi (SKAGI) Q3 2024 earnings summary

Executive summary

• Group profit for 9M 2024 was 700m ISK, with assets at 72.8bn ISK and equity at 20.4bn ISK as of September 2024.

• Insurance operations improved, with combined ratio at 95.2% (down from 100.5% in 9M 2023) and insurance revenue up 10.2% YoY.

• Financial services income rose 86% YoY pro forma, with net income of 1,452m ISK and AuM reaching 123bn ISK, set to rise to 224bn ISK after the Íslensk verðbréf acquisition.

• Acquisition of Íslensk verðbréf finalized in November 2024, adding 101bn ISK in AUM and 4,000 clients, consolidating fund management.

Financial highlights

• Q3 2024 core revenue: 8,126m ISK (+13% YoY); 9M 2024 core revenue: 23,087m ISK (+13% YoY); profit after tax: 700m ISK (-58% YoY).

• Insurance revenue for 9M 2024: 21,636m ISK (up from 19,631m ISK in 9M 2023); Q3 insurance revenue: 7,634m ISK (+9.8% YoY).

• Net financial services income Q3: 492m ISK (+86% YoY pro forma); 9M net income: 1,452m ISK.

• Investment income Q3: 713m ISK (1.6% return); 9M: 2,011m ISK (4.6% return); 9M 2023: 7.6%.

• Dividend of 1,000m ISK (0.524 per share) paid in April 2024.

Outlook and guidance

• Combined ratio target for insurance: 94–97% in 2024, 93–96% in 2025.

• Financial services income target: 1.9–2.6bn ISK in 2024, 2.9–3.5bn ISK in 2025; AuM target: 250bn ISK.

• Investment return target: 11% in 2024, 10% in 2025, based on current market assumptions.

• New long-term targets to be defined ahead of FY2025 results.