The auto insurance crisis is especially affecting direct entities – Seguros News

He sharp increase in accidents in Auto insurance, which at the end of the third quarter climbed to 79% of premiumsalmost five points more than a year before, affects all entities that operate in this field, but especially to direct entitieswhich are seeing their results severely affected by the impact of inflation on claim costs.

The most important entity of direct, Direct lineis so affected by the crisis in its main branch that deck does not distribute dividends among its shareholders, “since the circumstances do not exist”. This year the entity accumulates some losses of 14.6 million of euros until September and the value of the share has fallen 35% since it went public in 2021, when it committed to allocate 90% to dividends of its profits, as long as solvency did not drop below 180%, a limit it reached just at the end of the third quarter.

Another live entity very impacted by this situation is Admiralwhich operates with direct entities Quality Auto y They attackedand that in 2022 was the “red lantern” of the Spanish insurance benefits rankingl, with some losses of 26.5 million of euros. At the end of the third quarter, its premiums in Autos amounted to 94.2 million, with an increase of 15%, although it must be taken into account that most of the premium increases of the Auto entities come from rate increasesnot increases in the client portfolio.

WorthMapfre’s direct insurer, had losses of 2.8 million in 2022, although it reduced them sharply compared to 6.1 million the previous year. In premiums, at the end of September of this year it totaled 77.6 million.

A similar case is that of Phoenix Directwhich this year has merged with Allianz Directand which lost 2 million last year, but significantly reduced its losses from 6 million in 2021. Its premiums at the end of September of this year reached 32.4 million.

Hello Auto, for sale

Autos’ problems have even led to divestments being considered in this sector, as in the case of Hello Autowhose matrix Petroprix have commissioned EY the sale of the insurance company.

Last year Hello Auto had some losses of 2.7 million of euros and a premium volume of 5.1 million. In 2021 the red numbers were 3.6 million and the premiums reached 2.8 million. The entity At the end of 2022, it accumulated losses of 5.5 million of previous exercises. On that date, his own funds were 12.3 million.