Mutua Madrileña lowers its premium freeze policy and will raise policies to 66% of car insured in 2023

Grupo Mutua Madrileña has lowered its policy of freezing premiums for car insured for this year in view of the challenges that the sector is assuming due to the increase in costs due to inflation.

As reported by the president of the group, Ignacio Garralda, at the general meeting of mutual members of the insurance group, the firm will keep premiums frozen for a third (33%) of its policyholders this year. In 2022, Mutua maintained the prices for 50% of its car policyholders.

For the remaining 66% who will have to assume increases in their insurance premiums, Garralda has indicated that Mutua's objective is “to try to keep the increases as small as possible”.. In addition, it has highlighted that this policy of protecting part of its auto insured is feasible due to the contribution made by businesses other than the auto industry.

“We know how much this practice is appreciated by you and this is the reason why, in recent years, we have been applying it to the greatest extent possible to a large part of our portfolio”, Garralda indicated during his speech at the meeting.

Thus, the president of Mutua has valued the fact that the insurer would freeze premiums for 50% of its car customers in 2022 despite the fact that inflation in Spain climbed above 8%. It has also highlighted that this measure was added to that of granting two additional months without cost of car insurance to its clients in the renewal.

The increases in the premiums to 66% of the clients will be carried out “depending on their risk profiles” to “guarantee the good progress and solvency” of the company. “The criterion of prudence that characterizes us obliges us, in addition, to carry out permanent monitoring of the evolution of costs and other variables that influence rates, such as the frequency of claims, with the aim of always maintaining the solidity of the group “, Garralda stressed.

Profit of 405.3 million in 2022

The firm has exposed to the mutualists the annual results of which it reported last March. In the whole of 2022, the company obtained a net profit of 405.3 million euros, 7.1% more than the previous year. On its side, income from premiums rose 12.7%, to 7,310 million euros.

In this way, the president highlighted that last year “was an intense and fruitful year”, in which the Spanish economy showed “unexpected resilience” and where inflation registered levels not seen in more than three decades

Garralda has highlighted the good relationship that Mutua maintains with El Corte Inglés, with whom it has had an alliance since last year. This agreement materialized in that the insurance group acquired 50.01% of the two companies that group the insurance activity of El Corte Inglés, in addition to acquiring an 8% stake in its capital.

“Since June of last year, both companies have been working in excellent harmony to ensure the correct integration of all areas of action and maximize the value of the alliance”, Garralda indicated.

Integration with El Corte Inglés

The group's president explained that the conversion of the El Corte Inglés insurance brokerage into an agency linked to Mutua Madrileña has already been completed, which has involved adapting the sales philosophy and sales force to the new product offering.

As a result of this alliance, the head of Mutua has indicated that at the end of the first quarter of this year the sale of family insurance had increased by more than 15%, to exceed 60,000 policies, while if only car and home, growth was 30%.

Currently, the insurance branch of El Corte Inglés has 900 professionals divided into 114 delegates. The objective set by both companies is to increase their number to more than 1,000 in the next three years.

Garralda also explained that the company is waiting for the National Securities Market Commission (CNMV) to authorize the creation of Mutua's securities agency, which will be the vehicle through which it will market investment funds and investment plans. Mutuactivos pensions in the El Corte Inglés network. It is estimated that the approval will come in the coming months.