Skagi stock: Nine-month profit more than triples as insurance leads

Skagi hf. reported a sharp improvement in earnings for the first nine months of 2026 in results released on Wednesday, October 28. According to the company's GlobeNewswire release, profit after tax reached ISK 1.207 billion in the first nine months, compared with ISK 337 million a year earlier.

Insurance remains the earnings engine

Insurance contract revenue rose 7.4 percent in the first nine months. The insurance business recorded ISK 3.315 billion in results, up from ISK 2.920 billion in the same period of 2025, while the combined ratio improved to 87.0 percent from 87.7 percent.

The third quarter produced profit after tax of ISK 812 million, compared with ISK 717 million a year earlier. Annualized return on equity for the group was 14.2 percent in the quarter and 7.1 percent for the first nine months.

Financial services face tougher conditions

Financial services remained a drag on the group. Net revenue fell to ISK 1.961 billion in the first nine months from ISK 2.212 billion, while the segment reported a pre-tax loss of ISK 172 million after a profit of ISK 2 million a year earlier.

Skagi said market conditions affected corporate advisory and trading activities. Assets under management in financial services reached ISK 245 billion at the end of the period, up 3.8 percent year over year.

Restructuring sets the next target

The company is simplifying its group structure and pursuing further efficiency measures. Skagi expects restructuring, lower administrative costs, staffing changes and refinancing to reduce the annual cost base by up to ISK 610 million when fully implemented.

Shareholder distributions continued during the quarter, including ISK 248 million of share buybacks. Total buybacks and dividends for the year reached ISK 2.039 billion, according to the company.

Skagi's business and competitive position

Skagi is an Icelandic financial group headquartered in Reykjavik. Its businesses include insurance, insurance investments and financial services, with products ranging from property and motor cover to life, health and reinsurance services.

The group also operates investment and market-services businesses through units including Fossar and ÍV. Its broader combination of insurance and financial services distinguishes it from more focused Icelandic financial companies such as Sjóvá-Almennar tryggingar and Kvika banki, which are listed among comparable market names by Yahoo Finance.

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