The president of Grupo Mutua, Ignacio Garralda, has explained that his policy is to contain premiums, but he has also admitted that we are in a different environment and we will have to incur some “rise”, but he has also indicated that the company will have to make certain sacrifices and that will be seen in a worsening of the combined ratio. Garralda made these statements during the press conference to present the results. The group closed 2022 with a net profit of 405.3 million, which represented an increase of 7.3% compared to 2021.
Garralda has also mentioned conservative savings products, which are in high demand as shown by the appetite among investors and savers for Treasury Bills. Here he explained that insurers can offer interesting products, such as the Savings Plan Plus Fidelity II, with a return of 2.6%.
At the end of last year, the group’s premium income (including its national and international business) reached 7,310 million euros, 12.7% more than the previous year. In Spain alone, the figure for premium income rose to 6,477 million euros, 13.3% more than in 2021.
The insurer ended 2022 with 6,000 million euros in Non-Life insurance premiums. Specifically, it reached 6,098 million euros, which represents a growth of 9.4%, compared to the previous year. If both Life and Non-Life are added, the increase was 12.7% to 7,310 million euros. The insurer chaired by Ignacio Garralda has also broken the barrier of 20 million customers (both in Spain and Chile) to 20.8 million euros, representing an increase of 12.4%.
Distribution by premiums
By insurance branches, Autos obtained premium income in Spain of 1,807 million euros, which represents a growth of 16.3%, compared to an average increase of 3.3% in the sector. The combined ratio stood at 91.8%, managing to keep it below the industry average (98%). This relationship has been below his estimates, he has pointed out to Garralda, which has allowed him to release provisions.
The reason why Grupo Mutua has closed with a better combined ratio than the sector. This is due, according to the president of the insurer, to teleworking, more established in Madrid than in the rest of the provinces, as well as the policy of transport subsidies has implied a lower frequency of accidents in Mutua. It must be remembered that Mutua Madrileña has a high weight in Madrid. For this year, the combined ratio could go from 91.8% to 95%. Garralda has recognized that prices will rise somewhat to compensate, but “we will be the last to do so”, he has sentenced.
In the Health insurance branch, the Mutua Group reinforced its leadership in 2022 through Adeslas, reaching a premium volume of 3,167 million euros, 7% more than the previous year. This figure will allow it to consolidate its health market share of over 30%, almost double that of the next insurance group in the ranking.
As for Mutuactivos, the group’s investment division closed 2022 with a historical record of 740.5 million euros in net deposits from third parties (in investment funds, pension plans and life insurance). This represented an increase of 23.3% with respect to the previous year, an outstanding milestone given the complex situation of the markets. However, it contributed 18.3 million euros to the result, representing a 40% drop as a result of the loss of profitability of the Mutuactivos, Alantra, EDM and Orienta Capital businesses after a bad year for the markets, which translated into fewer commissions for management services.
Garralda has continued to bet on mobility and casrsharing solutions. His commitment to Voltio has evolved well, the Group’s president has pointed out. Thus he has announced that after the summer they plan to increase the number of vehicles from 50 to 1,000.
