VidaCaixa increases its net profit by 7% in the first half to 388.7 million

Vida Caixa got a consolidated net income of 388.7 million euros until June, 7% more than in the same period of the previous year. The sustained growth of managed resources and the increase in the volume of business and savings portfolios are the bases of this growth.

In the first half of the year, the company’s commercial activity was located in levels similar to those recorded before the pandemic. VidaCaixa’s bonuses and contributions were 5,512.1 million euros, 3.5% more than a year ago and 0.4% more than in 2019. The higher volume, a 84% of totalcorresponds to the savings business, in which capture stands out in the disposal products segment, which grew by 30% in annuities there linked unit). In life risk, the segment of personal protection, which increased by 27.2%.

Resources managed by VidaCaixa increased by 4%until reaching €113,586 million, despite the volatility recorded on the markets. Of the total, €65,301 million To belong to life insurance (4,317 million from Bankia Vida), 40,841 million euros are concentrated in pension schemes and EPSV, and 7,444 million come from BPI Vida e Pensões. In six months, VidaCaixa paid its customers 2,681 million euros in profits, 8% more Than last year. About half, or 1,240 million euros, was paid in the form of rent.

With these results, VidaCaixa remains the leader in the insurance sector occupying the first place in life with 34% of the total provisions. It also maintains its leadership in pension plans with 34% of the total volume of managed savings. During this first semester, the company launched different projects while he continues immersed in the integration of Bankia Vida, a process which should be completed during the last quarter of the year.

VidaCaixa Projects

VidaCaixa was chosen manager of the first Simplified Employment Retirement Plan (PPES) for the self-employed promoted by the ATA (National Federation of Associations of Autonomous Workers) since the approval of Law 12/2022, of June 30, of regulations for the promotion of employment pension schemes.

Furthermore, as part of its commitment to the environment, VidaCaixa has joined the collaborative dialogue 2022 Statement from Global Investors to Governments on the Climate Crisis. The initiative, which already brings together almost 600 institutional investors around the world, urges governments to increase your climate ambition and implement sound policies to achieve the objectives of decarburization of the economy and ensure that post-pandemic economic recovery plans support the transition to net carbon emissions.

In this same line, it was offset operating emissions (scope 1 and 2) greenhouse gases. By means of the generation of carbon creditsVidaCaixa financed the installation of 250 wind turbines in India and the commissioning of a hydroelectric plant in Brazil which will supply two municipalities with 100% renewable and clean energy.

Savings, pension and pension insurance

Savings insurance represented a significant share of the volume of premiums sold until June, both in the individual and group segments. The first reached €3,560.7 million which represents an increase of 8.7%. The second recorded 389.8 million euros with an increase of 2.1%.

The most effective products are those of range of annuities, which have accumulated 1,400 million euros in premiumsand the linked unitwith more than 1,300 million. Among these, the marketing of Asset value linked to units of accountinsurance that allows you to plan your estate, while making your assets profitable through an investment based on active management, with the certainty that the contribution is guaranteed in the event of death for ten years or until you reach the age of 95.

Of VidaCaixa’s five and a half million customers, more than 3 million are savings customers (insurance, pension plans and EPSV). Almost a million save periodically, so they have consolidated the habit and take advantage of the benefits of compound interest (interest reinvestment), get the most out of your savings.

On the other hand, contributions to pension plans they accumulated 862 million euros which are reduced by 14.2%. In the individual segment, they were located in the €562.7 million, 13.5% less than in the same period of the previous year. In the groups, contributions to employment plans were €299.3 million, 15.5% less than last year. In this segment, the decrease is explained by the comparative effect with the previous year, due to exceptional contributions to BPI Life and pensions in 2021. Looking only at the Spanish market, contributions to employment plans increased by 38%.

The resources managed in the pension schemes showed a shrinkage due to two factors. On the one hand, the fall in the markets, which had an impact on valuations and yields. On the other hand, the reduction in contributions due to the change in their tax system. individual plans and EPSV have accumulated at the end of June €28,272.1 million, 5.9% less (6,500 million euros were integrated in 2021 from Bankia Pensiones). The plans for employment and the associated device have had €15,653.7 million2.8% less (more than 2,000 million euros have been included in the employment plans of Bankia Pensiones in 2021).

In the long term, VidaCaixa’s pension plans recorded average annual returns above those of the market: 1.4% at three years (against 0.6% of the market); 1.7% at five years (against 1% of the market) and 3.5% at ten years (against 3.3% of the market). Diversification, active management and socially responsible investment are the pillars of the VidaCaixa’s investment strategy.

While the protection by life insurance grew in particular with customers in the individual segment. The bounties have been placed 27.2% above those of the previous yearr, accumulating €421.7 million (41 million come from Bankia). In the group segment, a total of 277.9 million euros in premiums (2.5 million come from Bankia), 15.6% less than a year ago.

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