Grupo Catalana Occidente obtains a consolidated profit of 155.6 million euros in the first half of the year, a 31.3% drop

"The Group's turnover increases by 3.5% as a result of the growth of the traditional business and Antares' contribution"

Grupo Catalana Occidente has obtained a consolidated profit of 155.6 million euros in the first half of 2020, which represents a drop of 31.3% compared to the same period in the previous year. This decrease is largely due to the lower insurance result of the credit business. However, the Group's turnover is up 3.5% due to the growth of the traditional business and Antares' contribution. 

The recurring profit of the traditional business (the companies Seguros Catalana Occidente, Plus Ultra Seguros, Seguros Bilbao and NorteHispana Seguros) grew by 10.7% between January and June of this year to 128.8 million euros, while the turnover (total volume of premiums) rose by 8.2% year-on-year to 1,499 million euros.

This increase is notable for a 3.7% rise in multi-risk and a 20.1% increase in life, due to Antares' contribution (health sector). Without considering the contribution of Antares, the growth of recurring premiums would have reached 1.2%. In addition, the combined reinsurance net ratio in traditional business (non life) stands at 88.4%, up 0.8 p.p., (percentage points).

As regards credit insurance (undertaken mainly by Atradius Crédito y Caución and Atradius Re), the recurring profit stands at 35.8 million euros, 69.9% down on the first half of 2019.  Meanwhile, the credit insurance turnover fell by 2.6%, dropping to 1,023.4 million euros. 

The combined reinsurance gross ratio of credit insurance rose 13.9 p.p. up to 94.3%. The technical performance of credit insurance dropped by 72.3%, when compared to the same period in the previous year, to 42.1 million euros, impacted by the Covid-19 health crisis.

The Managing Director of Grupo Catalana Occidente, Francisco Arregui, says that "the positive behaviour of the traditional business has allowed us to sustain the impact on the credit insurance business that we had already anticipated from the Covid-19 crisis".  The manager also highlights the Group's firm solvency position, with a solvency ratio of 213% at the end 2019.

Arregui also underlines that the pandemic has strongly affected the global economy, and this is why different countries have launched measures that help the business fabric through credit insurance. "The aim of these measures is to guarantee sufficient liquidity in the market; counteract the damage suffered by companies affected by the economic crisis; and preserve the continuity of the activity. In short, guaranteeing that the commercial credit insurance services remain available to all companies" emphasises the director.

Permanent resources at market value in the first half are down 2.8% with respect to 2019 year-end, reaching 4,457.9 million euros. This decrease is mainly due to the performance of the financial markets. Funds under management stood at 14,324.8 million euros.