BBVA Seguros posts net attributable profit of 267.4Mn, 11% more than in 2010
BBVA Seguros posted net attributable profit of 267.4Mn, 11% more than in 2010. These results are due to the strong increase in premiums issued, with volumes rising 73% on 2010 to 1.877Bn. Revenues grew 13.6% to 417Mn.
- (1888PressRelease) February 06, 2012 - BBVA Seguros experienced notable growth in business activity in 2011, issuing premiums worth 1.877Bn (a 73% increase year-on-year) thanks to the launch of both savings and risk investment initiatives. At year end, the company had more than 2.87 million policyholders.
Strong growth in premiums
The BBVA Seguros individual savings fund business reported premiums worth over 890Mn, an increase of 194% compared to 2010. This growth was driven by the fixed annuity and PIAS (systematic individual savings plans) lines, thanks to the attractive pairing of guaranteed return and tax advantages offered by both products.
The provident funds business grew 152%. In this segment, the various promotion and web presence initiatives launched, along with an integrated value offer, stand out. These factors have made BBVA Seguros a benchmark in this market, issuing premiums for a total of 464Mn in 2011.(+152% year-on-year).
Customer funds under management, both individual and group funds, grew 8% year-on-year, with 8.793bln under management at the end of the year.
BBVA Seguros: Leader in life insurance
BBVA Seguros had a 10.5% market share of premiums in September (latest available data), and remains the market leader in this segment.
Premiums issued at the end of 2011 totaled 288Mn, down 21% due to a reduction in finance related operations, in the context of a slowdown in lending in the market.
Activity in the non-life insurance business was steady, with premiums issued totaling 236Mn (+1.7% year-on-year). Home insurance contributed 180Mn (-0.3%) of this amount.
New commercial offers
In order to complete the range of savings products for policyholders, BBVA Seguros has added to its catalogue by launching an array of insured savings plans (PPAs):
A cumulative plan, with the aim of building a sum of capital for retirement through guaranteed returns over different time horizons, depending on the client's needs
And an income plan, which allows savings that customers have built up to their retirement in a different PPA or PPI (individual pension plan) to be converted into a monthly annuity
Lastly, with the aim of capturing new customers and to reward policyholders for their loyalty, BBVA has launched a new commercial initiative, a Remunerated Insurance line. This is a range of life, home and temporary incapacity insurance policies, through which policyholders can obtain a 25% discount from year three for as long as the policy is maintained.
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BBVA is a customer-centric global financial services group founded in 1857. The Group has a solid position in Spain, it is the largest financial institution in Mexico and it has leading franchises in South America and the Sunbelt Region of the United States. Its diversified business is biased to high-growth markets and it relies on technology as a key sustainable competitive advantage. BBVA ranks among the leading Euro zone banks in terms of ROE and efficiency. Corporate responsibility is at the core of its business model. BBVA fosters financial education and inclusion, and supports scientific research and culture. It operates with the highest integrity, a long-term vision and applies the best practices. The Group is present in the main sustainability indexes.