Grupo Catalana Occidente Sees Increased Profits in Q1 2023 Despite Challenges in Traditional Businesses

GCO (Grupo Catalana Occidente) has achieved a consolidated result of 159.3 million euros in the first quarter of 2023, 9.2% more than in the same period of the previous year. Total business volume increased by 12.4%, up to 1,842.4 million.

Inflation and weather impact the profit of traditional business

Seguros Catalana Occidente, Plus Ultra Seguros, Seguros Bilbao and NorteHispana Seguros (which will soon be integrated under the new Occident brand) add up to a business volume of 993 million, with growth of 8.2%, highlighting the increase in billing of 6 .6% in Multi-peril and 10.2% in Miscellaneous.

Ordinary result, on the other hand, decreased by 10.8%, to 53.6 million, due to the 3 percentage point increase in the combined ratio, which stands at 91.7%, mainly due to the increase in the cost of claims due to inflation and, in the case of Multi-risks, due to the impact of some adverse weather events.

On the other hand, income from the funeral business, already with the acquisition of Grupo Mémora, amounted to 48.2 million in the quarter, with an ordinary result of 5 million.

Increase the combined ratio in Credit

Regarding the Credit insurance business (Atradius Crédito y Caución, and Atradius Re), its ordinary result increased by 26.9% and reached 101 million. The gross combined ratio stands at 74.3%, 8.1 points more than in the first quarter of 2022, according to the group itself due to the normalization of the incoming claims, despite continuing below pre-covid levels. Business volume (premiums billed plus income from information) grew by 12.3%, to 801.2 million.

“The data for the first quarter show that we continue to maintain solid results, with improvements in our three strategic pillars, growth, profitability and solvency, despite a macroeconomic context marked by inflation and geopolitical tensions; to which the profitable and growing business of Mémora will be added”, assesses the general director of Finance and Risks, Clara Gómez.