VidaCaixa's profit soars 32%.

The VidaCaixa insurance group shot up its consolidated profit last year by 32.1%, to 1,147 million euros, thanks to the growth of the resources it manages, which reached 122,356 million euros, 9.2% more, contributed by 6.4 million clients, a group that remained practically stable last year.

The company's CEO, Javier Valle, recalled that VidaCaixa has been the leader of the Spanish insurance sector for eight years, with a market share of 14.88% in Spain, which in the life branch reaches 35.7% of insurance provisions, and manages 34% of the total assets in pension plans. Its Portuguese subsidiary, BPI Vida e Pensões, is the second largest pension fund manager in the country, and the third largest in life insurance.

Javier Valle said that 2023 was a "very intense and very good year", driven by the rise in interest rates, which increased funds raised by 31.2%, in the form of insurance premiums and contributions to pension plans, to reach 13,444.2 million euros.

Life annuities

The group's growth was based on the growth of life annuities, a segment in which the group is a leader, which grew by 60% with contributions of 4,800 million euros, as well as guaranteed savings insurance. The group has close to one million customers who save systematically, with an average contribution of 143 euros per month, with MyBox Jubilacion as the star product.

VidaCaixa also grew by 6.4% in life-risk premiums, to 1,372 million euros, well above the market as a whole, driven by its MyBox Vida product.

Contributions to individual pension plans, on the other hand, fell by 8.4%, to 966.8 million euros, but the return on investments increased managed resources by 7%, to 29,725 million euros.

Employment plans

Valle highlighted VidaCaixa's growth in employment pension plans, which he described as the second pillar of the social welfare system. The group has been chosen by the Ministry of Social Security to manage one of the lots of the new publicly promoted employment pension funds (FPEPP), and came first in the competition for the profitability it offers to participants.

The firm also launched a year ago the simplified pension plan for the self-employed, with ATA, which "is gaining participants", and is in the process of launching the simplified employment pension plan for the construction sector, open to one million employees and 400,000 self-employed workers in 130,000 companies. "It is a highly complex project, and we believe that its success will encourage other sectors, which are considering similar initiatives," he said.

Valle explained that the group is carrying out a pilot project with the reverse mortgage, a product with which they prefer to be cautious because in his opinion "the regulatory environment is not sufficiently clear" and the contracting has fewer guarantees than in other countries.

For 2024 Valle foresaw a "continuist" fiscal year, because in his opinion there will not be a significant reduction in interest rates, and with the focus on growth in employment plans.

The executive pointed out that the group will reinforce its commitment to inclusivity, which became a reality in 2023 with HIV patients, by becoming the first insurer to extend its standard-rate coverage to patients without previous illnesses and under treatment.

The group, Valle explained, is also going to anticipate the provisions of the Law on the Right to Oncological Oblivion. Thus, he explained, it will insure people who have suffered from certain breast or prostate cancers with standard conditions after one year from the start of their treatment, without waiting for the five years stipulated by the law.