Spanish insurer Linea Directa shares jumped 8% Monday after reporting a fourth-quarter combined ratio of 90.4%, beating analyst consensus by 300 basis points. The strong underwriting performance drove full-year net profit of €85.7 million, 18% above expectations and up 33.5% year-on-year.

Gross written premiums reached €1.13 billion in 2025, growing 11.3% compared to the non-life sector's 7.8% average. The company's full-year combined ratio improved to 92.6%, supported by a 1 percentage point reduction in the loss ratio to 71.6% and a 1.1 percentage point drop in the expense ratio to 21.0%. Motor insurance, Linea Directa's largest segment, posted 11.8% premium growth to €924 million, outpacing the sector's 8.4% expansion.

The insurer added 290,400 policyholders in 2025, bringing its total portfolio to 3.73 million, up 8.5%. UBS analysts, who rate the stock a "buy" with a €1.35 price target, expect a positive market reaction given the profit beat driven by technical profitability. Shares closed at €1.16 on February 20.