Sjóvá reports a strong 90.8% combined ratio for the first nine months of 2026, prompting an upward revision to its annual underwriting guidance despite softer investment performance.
Sjóvá reported strong underwriting performance for the first nine months of 2026, with a combined ratio of 90.8% and no major losses, leading the company to upwardly revise its 2026 underwriting profit guidance to 2,700–2,900 m.kr. While underwriting remains robust, investment returns have lagged expectations due to challenging Icelandic market conditions, high inflation, and rising interest rates, which have negatively impacted the company's equity portfolio.
Sjóvá has updated its guidance for the combined ratio to approximately 92%, compared to the previous range of 93–95%.
The company has launched a '2.5% path' initiative, capping price increases on household vehicle insurance at 2.5% (the Central Bank's inflation target) through the end of 2027.
Investment returns were 472 m.kr. in Q3, with a 0.9% return on managed assets, which the company noted was significantly below expectations due to poor performance in equity markets.
Icelandic insurer Sjóvá-Almennar tryggingar hf. reported a solid nine-month profit of 1.9 billion ISK, supported by a robust 90.8% combined ratio. While investment returns lagged due to challenging Icelandic market conditions, the company raised its 2026 underwriting guidance to a range of 2.7–2.9 billion ISK, citing favorable claims development and operational efficiency.
The guidance was raised due to favorable claims development and a strong combined ratio performance, which outperformed initial expectations despite stagnant revenue growth.
Investment returns were 963 million ISK, which the company noted was below expectations, primarily due to poor performance in Icelandic equity markets and the impact of high interest rates.