Pensions and Insurance

The Pensions & Insurance business in South America contributed with a net attributable profit of €195m in 2011, 3.6% up on the figure for 2010. Out of this total, €106m were generated by the pension-fund business (down 16.1%) and €89m by the insurance business (up 44.0%).

In 2011, the pension business was severely affected by the high level of volatility on financial markets, with the resulting negative impact on NTI in the companies. However, the positive performance of commercial activity has led to an increase in fund subscriptions of 16.0% year-on-year and thus a positive effect on net fee income (up 6.9%). Funds under management remained at practically the same levels as 2010, at €47,818m.

AFP Provida in Chile obtained a net attributable profit for the year of €74m, 17.2% down on the figure for 2010. This can be explained by the worse figures for NTI, as recurrent revenues performed very favorably thanks to growth in subscriptions (up 4.7%). There was moderate growth in expenses, 3.7% over the year. In Peru, AFP Horizonte generated earnings of €13m (down 16.4% year-on-year). The good management by the company has enabled it to improve its market indicators. In particular, there was a significant increase in subscriptions (up 16.3%), it maintained its first place in share of pension savers and leadership in the returns on two of its three managed funds. The above has had a very positive effect on the firm’s fee income (up 20.4%). Finally, AFP Horizonte Pensiones in Colombia had a net attributable profit of €21m and its managed funds increased by 12.9%, with the number of pension savers increasing by 8.4% and subscriptions by 25.6%.

The insurance business has had a very favorable year and continues to show notable strength. In 2011, the increased activity and improved product catalog resulted in a year-on-year rise in the volume of written premiums by all the companies as a whole of 9.7%.

The Grupo Consolidar in Argentina had a net attributable profit of €23m, 6.8% up on the figure for 2010, while the insurance companies in Chile generated €33m, Seguros Provincial in Venezuela €8m and the companies in Colombia €22m.