The consolidated profit of Grupo Catalana Occidente rises 73.4% in 2021 to 468.3 million euros

"The insurance group increased its profits and income in the two lines of business in which it operates, also improving its pre-pandemic results."

Grupo Catalana Occidente closed the 2021 financial year with a consolidated profit of 468.3 million euros, 73.4% more than the previous year. This increase is due to the positive performance of ordinary income and the growth in turnover, which rose by 7.1% to 4,882.5 million euros.

The ordinary profit of the traditional business (the companies Seguros Catalana Occidente, Plus Ultra Seguros, Seguros Bilbao and NorteHispana Seguros) rose by 2.3% to 244.2 million euros, while turnover (total earned premiums) increased by 3% to 2,801 million euros, compared with the previous year. 

This increase in turnover is notable for the positive performance in other risks, multi-risk and life insurance, with growth of 6%, 5.1% and 3.7%, respectively. In turn, the combined ratio in the traditional (non-life) business stood at 88.9%, up a further 0.3 p.p. (percentage points). 

In the credit insurance business (Atradius Crédito y Caución and Atradius Re), its ordinary profit amounted to 241.8 million euros, recovering the activity and results prior to the COVID-19 health crisis, thanks to the risk management actions undertaken. Likewise, the volume of credit insurance business (earned premiums plus information services) amounted to 2,081.5 million euros, a 13.2% increase. 

The net technical performance of credit insurance stands at 309.7 million euros, 281.4% more than in the previous year, when it was impacted by the pandemic. In turn, the combined gross reinsurance ratio of the credit insurance business improved by 29.9 p.p. to 64.2%. 

For the Managing Director of Grupo Catalana Occidente, Francisco Arregui, "2021 has been a year in which the positive evolution has been consolidated in our two lines of activity: the traditional business and the credit insurance business, with growth in turnover and a more than a 10% improvement in profits than before to the pandemic". He also stated that "the Group has demonstrated its resilience by remaining faithful to its strategic pillars of growth, profitability and solvency".

Financial strength

Grupo Catalana Occidente has a sound solvency and financial position. The solvency ratio estimated by the insurance group at the end of 2021 is 220%, 4 percentage points higher than the year before. In addition, permanent resources at market value increased by 11.3% to 5,191.5 million euros. 

In 2021, the rating agency A.M. Best once again confirmed the rating of A (excellent) with a stable outlook for the main operating entities of Grupo Catalana Occidente's traditional and credit insurance business. In the same line, this February 2022, Moody's ratified the rating of A2 with stable outlook for the main operating entities of Grupo Catalana Occidente in credit insurance. 

In addition at its meeting today, the Board of Directors has resolved to propose, to the General Shareholders' Meeting, a 10% increase in the final dividend to be paid on 11 May 2022. With this, a total of €0.9464 per share (113.57 million euros) would be allocated, with an increase of 7.3%.

Sustainability and customer orientation

In 2021, the insurance group made progress in its firm commitment to the generation of sustainable value. On the social side, it has continued to contribute to alleviating the socio-economic and health effects of the pandemic through the collaboration of the Fundación Jesús Serra with Save the Children; and through participation in the fund created by the insurance sector to mitigate the effects of the pandemic, which this year has promoted research and supported people in situations of economic and social vulnerability. On the environmental front, the group has continued designing its climate change roadmap, adopting the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) and making a commitment to zero net emissions by 2050 through joining the United Nations' Net Zero Emissions Insurance Alliance.

In terms of customer orientation, Grupo Catalana Occidente has continued to work on developing innovative and sustainable solutions to improve its value proposition, such as the launch of a health product that offers home care and attention to the elderly or the service to obtain a second-hand vehicle in the event of the total loss of one's own. Likewise, the customer experience has been improved with the video assessment service, which is highly valued by policyholders, the digital signature for contracting products, the digital policy and new payment methods.