will start trading and it does so with good results, although not all of them offer the best estimates in terms of profitability. Its latest bet within the framework of diversifying sources of income and activity, Vivaz, will not generate positive profits until at least 2024, therefore it will be in technical losses for the first seven years of its life. to enter the segment of health policies.
According to the figures provided in the brochure for the listing of its shares, since then the red numbers of this brand have exceeded 30 million euros. Specifically, the hole stood at 7 million in 2018; 16.3 million in 2019; and 7.89 million, in 2020. Figures that have cut its global annual earnings for the group. Last year they were 143 million.
As it is a recently created business, it needs time to mature, hence the negative results it obtains and the fact that it is the branch that registers the most revenue growth in the group. In 2020, the increase in Vivaz’s billing reached 38%. Although, its weight in the company is still small, since it only contributes 21 of the almost 900 million of its total volume of premiums. Slightly more than three quarters of its income comes from its traditional activity, automobile policies; and 11%, home insurance.
Línea Directa explains in the document that Vivaz is in a growth phase and that the number of policies increased by 28.4%, while the average premium decreased by 7.7% in new operations and 1.7% in old renovations. It has a customer base of 90,000. In this way, it does not rule out that the company enters a break even before 2024, if the home and car developments of the past are met. In addition, he points out that 6.1 million of the total losses are provisions for regulatory issues for the activity.
These advances have allowed the company to position itself as number 23 in the ranking in 2020 in health insurance, although its market share is still very residual, barely 0.24%. In fact, the firm warns of the concentration of the sector in this branch, where the first three companies control 64% of the market (, and ).
The objective of Línea Directa is to reinforce diversification in the coming years and reach a turnover of 1,000 million, something that will allow it to be able to comply without any problem with one of the pillars of its plan as a listed firm: the succulent distribution of dividends. , as long as your solvency does not drop below 180%. It currently has 213%.
main shareholders
Línea Directa will go public within the framework of the project to deconsolidate the insurance business from its balance sheet and focus on financial activity, in addition to remunerating its shareholders. The placement will be an extraordinary dividend that the bank offers its partners, since each of them will be the direct owner of the shares of the insurer.
It will start rolling in the market with a valuation of 1,300 million and its main investors will be Cartival (de ), with 19% of the capital; the bank itself, which will retain 17%; and Fernando Masaveu, with just over 4%. In principle, none of these main shareholders has agreed to keep the titles they receive from Línea Directa, so they could sell part or all of their participation whenever they want.
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