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Mutua will formalize the purchase of Seguros El Corté Inglés “in the next few days” | Economy

The National Markets and Competition Commission (CNMC) has given the green light to Mutua Madrileña’s operation to acquire 50.01% of Seguros El Corte Inglés. This was announced this Friday by Ignacio Garralda, president of the Mutua group, during his speech at the company’s general meeting. “In the next few days we will proceed to the definitive purchase of the shares and we will access the administration and management bodies”, he stated during his speech.

The operation has two parts: on the one hand, Mutua acquires 8% of El Corte Inglés for 555 million. And on the other, the group keeps half of the insurance division of El Corte Inglés for another 550 million. In this way, the acquisition as a whole amounts to 1,105 million euros. The approval of the CNMC, which was produced without conditions, was communicated to the firm this Thursday. With this purchase, Garralda will enter the board of directors of El Corte Inglés.

The president of Mutua Madrileña has also highlighted, within the corporate operations of recent months, the extension of the agreement with CaixaBank to extend the marketing of insurance to the network of the former Bankia, absorbed by the Catalan entity. For this, the insurer has paid 650 million through SegurCaixa Adeslas. “This operation has a net cost for Mutua of 325 million euros, as the owner of 50% of SegurCaixa Adeslas”, Garralda explained in his speech.

price containment

The president has also announced the intention to freeze the amount of car insurance for about 50% of customers this year. “Out of prudence, a permanent monitoring of the evolution of the CPI and other variables that influence rates will be carried out in order to be able to adjust their application,” explains the firm in a statement.

The board has approved the accounts for 2021, a year in which the group obtained a net profit of 378.5 million euros (24.5% more than the previous year) thanks, above all, to the geographic diversification strategy and by products. “All this allowed Mutua to close the year, for the fourth consecutive year, as the leader in the ranking of general insurance in our country”, emphasized Garralda.

He knows in depth all the sides of the coin.

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Regarding the 2021-2023 strategic plan, the group has assured that the invasion of Ukraine conditions the expectations of recovery and growth of the economy and raises uncertainty. Within the sector, forecasts are not positive for the auto insurance segment, mainly affected by inflationary pressure.

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