The rate increase costs the GCO 719 million euros

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The increase in interest rates cost the Catalana Occidente Group (now GCO) 719 million euros in 2022 due to the loss of value it meant for its fixed income portfolio, as explained by its CEO, Hugo Serra, at a conference organized by the consulting firm PwC and Foment del Treball. Serra, who presented the company's 2022-24 strategic plan, explained that the firm closed last year with permanent resources of million euros and that the valuation adjustment of its fixed income portfolio was not relevant due to the large diversification of the group's investments: only 51% of them at the end of 2022 were in fixed income securities, mostly short-term, and 20% in treasury and monetary assets, with another 13% in variable income and another 13% in equity.

The value correction of its fixed income portfolio has not been carried out in the profit and loss account, which closed with a profit of 211 million euros, but in the value of its permanent resources on the Job Function Email Database balance sheet, as provided by regulations. accountant. The GCO provides 120 million to cover the cost of the 488 casualties that it has agreed with the unions Serra explained that the group is now immersed in the integration of its traditional insurers (Catalana Occidente, Plus Ultra, Seguros Bilbao and Nortehispana), a process that began gradually a decade ago and that now, after having all the services integrated, It will culminate with the integration of commercial networks, “which is where the future is at stake,” and corporate structures.



The employment adjustment, of 488 people according to the agreement reached with the unions, will cost 120 million, which the firm already provisioned in its accounts last year. “Our focus is to gain efficiency,” he acknowledged, as well as to continue growing.Serra explained that one of the challenges the group faces is the drop in profitability of some lines affected by inflation, such as multi-risk insurance and especially automobile insurance. “We have benefits, but the sector as a whole operates in automobile insurance in technical accidents,” said Serra, that is, the premium price does not cover compensation expenses. Companies are suffering from an increase in the cost of repairs, but also "the frequency of accidents has increased because the use of private vehicles has increased, even though the price of fuel has been very high," he said.