Vidacaixa’S Revenue In 2020 Was $888 Million, An Increase Of 11.7%, Even Though The Crisis Led To A Decrease In Donations

2021-02-10   |   by CusiGO

Vidacaixa, caixabank’s 100% insurer, continued to grow in profits at the end of the financial year, despite the 21% reduction in premiums and customer contributions as a result of the crisis. Vidacaixa made 888 million euros in 2020, an increase of 11.7% over the previous year, consolidating its leading position in life insurance. The company manages about $100 billion in assets.

In its note, the company clarified that savings were “particularly affected by the epidemic situation in the first few months of this year, with accumulated premiums and contributions of $8.5387 million, 21.1% less than a year ago.”. However, Javier Valle, chief executive of vidacaixa, explained at a press conference that the company’s performance is achieved through years of accumulated savings rather than through a financial year’s bonus. This is our income statement. ” Valle is reluctant to respond to the impact of caixabank’s merger with Bankia on its insurance business because it has not yet legally happened. “So far, we are competitors,” he said.

In addition, in 2020, about half (47%) of the total premium on cumulative products will be fixed-term savings, thanks to contributions from nearly 1 million customers starting from EUR 50. “For many families, it’s a kind of savings, not only related to retirement over time, but also as a fund that we can rely on in special circumstances, such as those we experience,” the agency said.

Caixabank group made a profit of $1381 million last year, making its insurance group nearly two-thirds of the consolidated results. The life insurance business generated a net income of EUR 871 million (+ 10.6%) for the institution, while the 49% stake in segurcaixa adeslas and other subsidiaries was EUR 367 million. This company (mutual madrilena holds the remaining 51%) is the leading insurer in the field of health insurance. It also provides general insurance (car, home, business, etc.) to caixabank’s offices.

“This is a special year. More importantly, given the new production epidemic that has declined and the slowdown in economic activity. “Our development is related to accumulation and to the number of clients who continue to make regular contributions to life insurance savings and pension plans,” Valle explained.

In the reporter’s question, he criticized the government’s measures to reduce the deductible amount of investment in individual pension plans to 2000 euros, although he praised the promotion of enterprise plans. “It’s a bunch of flowers that have to grow and we want to be the protagonist,” the manager said. Valle questioned the government’s growth forecast for the investment because he thought other countries were growing at a slower rate.

Vidacaixa’s chief executive believes that the industry will be concentrated in the medium term due to the massive investment required by the new regulations, and he downplays the importance of management fees. “It’s important that we are one of the most profitable companies after deducting commissions,” he said, He remembers them tripping over the law.

As for their investments, he pledged to adhere to the principle of sustainability, giving the most environmentally friendly companies the upper hand. “We even have conversations with some companies that their activities will improve if they don’t follow the right green policy,” he explained.