Libertas Seguros, which covers the business of the American company in Spain, Portugal, Ireland and the United Kingdom, has achieved a remarkable profit of 381.4 million in 2022, up from 60 million in the previous year. Insurers present these results during the process of selling the business.
The results, 126 million correspond to the extraordinary accounting control caused by the simplicity of the structure of the European group. The parent company, Liberty Mutual, set up its headquarters in Old Continent Madrid years ago, from where the rest of the European subsidiaries depend. Spain is the largest independent insurance market.
The process of selling Liberty’s European arm, run by Bank of America, is coming to a head. Allianz, Generali, Zurich and Reale are the companies that have passed the first stage of the acquisition approach according to sources from the investment banks. Now, those who are interested, until the 22nd that in addition to what is relevant to the 22nd, the mandatory offer for Liberty Europe, which could be close to 2,000 million in cash.
Last year, both life insurance and others contributed positively to the result achieved. Business plan life registered technical issue 134 million, while the “non-life” technical system increases from 98 million in 2021 to 134 million in 2022.
Liberty has 3.5 million customers in Europe, with more than four million customers. It claims to have processed 656,028 last year. Of the total premiums, 66% are auto policies, the company’s main line of business, 14% are home policies, 9% are life policies and 5% are multi-risk policies.
An open and uncertain operation
The sale of Liberty’s mortgage business in Europe has raised concerns for many insurers. It is not easy to consolidate the opportunity for such a sector to grow suddenly in four countries, with an aggregate volume of 1,200 million in premiums. According to the market, one of the entities most willing to make the most ready offers for these subsidiaries is Reale, the Italian mutual group, which already has a significant presence in Spain. But it is not clear that he enjoys the operation. It depends on the price that he has to offer. The decision to sell was close to some problems in the parent company, which were resolved in the last few months, so it is no longer in such a hurry.
In 2022, the company achieved a total income of 1,235 million cash prizes, 2.5% less than the previous year. The company aims to maintain itself as a brand in the direct channel, strategic companies to diversify business sources and strengthen relationships with insurance sectors. During 2022, the company signed long-term bancassurance agreements with Bankinter and Kutxabank.
One of Liberty’s most reliable data is the combined ratio, which reports the profit of the business. If it exceeds 100%, it indicates a technical loss. In the US society, in non-life plans, it was 90.76%, almost four points lower than in 2021. This improvement “is the result of a combination of profit measures to protect the profit against an inflationary scenario. With investment in better price models and better products”.
The results of business life have been positively affected by the effects of increasing interest in mathematical calculations and also by favoring the behavior of rational claims.
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