The consolidated profit of Grupo Catalana Occidente reaches 97.7 million euros in the first quarter of 2020, a 10.4% drop

"Turnover increases by 11.3% to reach 1,486.1 million euros"

Grupo Catalana Occidente has obtained a consolidated profit of 97.7 million euros between the months of January and March of 2020, which represents a drop of 10.4% compared to the same period last year. This fall is largely due to the lower insurance result of the credit business. However, the Group's turnover is up 11.3% reaching 1,486.1 million, thanks to sustained growth in traditional business and Antares' contribution to revenue.

The recurring profit of traditional business (the companies Seguros Catalana Occidente, Plus Ultra Seguros, Seguros Bilbao and NorteHispana Seguros) grew 7.8% to 55.4 million euros, whereas turnover (total volume of premiums) is up 18% on the same period last year, reaching 875.6 million euros.

This increase is notable for a 4.3% rise in multi-risk and a 42.4% increase in life, due to the incorporation of Antares (health sector). It is worth stating that without the contribution of Antares, the Group's turnover would have grown by 2.1%. Similarly, the combined ratio in traditional business (non-life) stands at 89.2%, up 0.4 pp (percentage points).

As regards credit insurance (undertaken mainly by Atradius Crédito y Caución and Atradius Re), the recurring profit stands at 48.3 million euros, 23.1% down on the first quarter of 2019.  For its part, credit insurance turnover increased by 3%, reaching 610.5 million euros. 

Thus, the technical result of credit insurance is down by 33.9% on the same period last year, standing at 57.1 million euros. As a result, the combined credit insurance ratio increases by 10.1 pp to 83.1%, partly due to an increase in provisions for Covid-19.

The Managing Director of Grupo Catalana Occidente, Francisco Arregui, highlights the positive trend in the Group's turnover during the first three months of 2020 "due to growth in traditional business and the contribution of Antares to turnover". In the current global economic environment, as a result of the crisis generated by Covid-19, the Managing Director stresses that "the Group holds a solid position, both financially and in terms of solvency". The Group's estimated solvency ratio stands at 213% at the close of 2019, compared to 207% in 2018.

At the end of the first quarter of 2020, permanent funds at market value are down 8.2% compared to the close of 2019, at 4,207.6 million euros. This decrease is mainly due to the performance of the financial markets. Funds under management total 13,757.5 million euros.

Actions to combat Covid-19

Grupo Catalana Occidente has gradually taken measures in accordance with its protocol of action, with the aim of tackling Covid-19 in various areas: protecting its employees and collaborators, guaranteeing the provision of the service and launching initiatives to support its customers and suppliers.

Along these lines, the measures designed include an extension payment dates for insurance premium, to alleviate the financial situation of its customers. Furthermore, the Group has allocated 20 million euros to interest-free advances on the invoices of more than 20,000 suppliers affected by Covid-19.

It has also made a donation to the Spanish National Research Council (CSIC), with the aim of driving research into a future vaccine against Covid-19, and it collaborates with Save the Children to support families in vulnerable situations.

In the industry, the Group has contributed 2.27 million euros to the charity fund to protect the lives of healthcare professionals who are at the forefront of the fight against Covid-19.