In This Article:
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Total Turnover Growth: 2.9% increase, outperforming the Spanish insurance industry.
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Consolidated Result: EUR574.5 million, a 9.2% increase compared to the previous year.
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Traditional Business Growth: Recurrent premiums grew above 6%.
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Combined Ratio: Slightly above 90%, a decrease of two points from the previous year.
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Funeral Business Turnover: Almost EUR200 million, with positive comparison to the previous year.
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Dividend Increase: 7.5% increase in July and October 2024 compared to the previous year.
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Motor Insurance Growth: 9% increase in turnover, with a combined ratio of 95.9%.
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Multi Risk Insurance Growth: 7.5% increase in premiums, with a combined ratio of 88.3%.
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Credit Business Premiums: EUR1.709 billion, with a slight 1% drop.
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Financial Results: EUR169 million, a 17% growth due to improved fixed rates.
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Permanent Resources at Market Value: Above EUR6.5 billion, a 13.3% growth from year-end 2023.
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Managed Funds: EUR16.756 billion, a 9.1% increase compared to year-end.
Release Date: October 31, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Grupo Catalana Occidente SA (FRA:OCZA) reported a 2.9% increase in total turnover, outperforming the Spanish insurance industry.
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The company achieved a consolidated result of EUR 574.5 million, marking a 9.2% growth compared to the previous year.
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Traditional business lines showed strong performance with a 6.5% growth in recurring premiums.
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The funeral business contributed positively with almost EUR 200 million in turnover, reflecting a stable and high margin.
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The company maintained a strong solvency position with a 232% solvency ratio, supported by solid capitalization and high return on capital.
Negative Points
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The credit insurance business experienced a slight drop in turnover by 1.8%, attributed to inflation and reduced commercial activities.
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Inflationary pressures continue to impact the insurance business, particularly in motor insurance with rising claim costs.
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The combined ratio in the motor insurance sector remains high, indicating ongoing technical losses.
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The funeral business faced inflationary tensions affecting salary and operating costs, impacting margins.
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The company anticipates potential increases in claims due to weather events, which could affect future profitability.
Q & A Highlights
Q: We still see a growth of 9% in earned premiums. How long can we expect this digit growth to continue, and what are the prospects for the fourth quarter? A: The sector is growing by almost 9% due to inflation impacting the cost of claims, particularly in motor insurance. We expect prices to continue rising, maintaining our positive gap with the sector. The third quarter typically performs poorly due to seasonality, but we anticipate ending the year with similar profitability levels, managing cost pressures and maintaining customer relationships.