Pensions and Insurance

In 2011, the pensions and insurance business generated a net attributable profit of €317m (up 5.2% year-on-year).

In the pensions sector, Afore Bancomer continues to perform extremely well, leveraged on a stable labor market. As a result of the good management of business activity, it closed the year with assets under management of €13,132m, up 12.1% year-on-year, and with a 4.4% growth in fund gathering. Both variables are key to achieving increased income from fees and commissions (which rose 6.7% on 2010) and a net attributable profit of €76m. This latter figure is very positive (up 5.1% year-on-year), considering the current instability and volatility of the financial markets worldwide.

The commercial performance of the insurance business in 2011 was very positive. Of particular note were the uptake on the ILP (Free Wealth Investment), the solid performance of the Creditón Nómina loan and HogarSeguro and VidaSegura Preferente insurance, and the progress of the AutoSeguro insurance, boosted by the campaign run in the early part of the year. The new Auto Alerta product is an outstanding example of technological innovation. It uses GPS to report accidents by simply pressing a button on a mobile telephone. The low levels of claims in the car and life insurance branches have favorably contributed to earnings in 2011.