MAPFRE’s investment area boosts its profit by 23% thanks to the sale of funds and Unit Linked
MAPFRE Inversión, the business area that encompasses the investment services provided by the Group to its clients, recorded a profit of 32 million euros in the first six months of the year, up by 23 percent year on year. Sales revenue grew by 16 percent compared to September 2020, while total operating expenses rose by 11 percent.
The good progress of the business is due, on the one hand, "to the good performance of subscriptions, which have grown by 38 percent in the period, as well as the inflows of investment funds, mainly from MAPFRE funds," says Miguel Ángel Segura, general manager of MAPFRE Inversión. In addition, the marketing of investment funds with ESG (environmental, social and governance) criteria continues to improve, with a net positive balance of 94 million euros,, of which 38 million euros comes from retail customers.
For more than five years now, MAPFRE, through its manager, MAPFRE AM, has opted for this type of ESG funds. In 2017, it acquired 25 percent of the French management company, La Financière Responsable (LFR), a firm that already had more than ten years of experience in this field. Currently, MAPFRE AM has two ISR funds according to Article 8 of the new SFDR regulation: the Responsible Capital and the Responsible Inclusion. The latter, which has been used as an example of good practice by the UN, incorporates companies into its portfolio that are committed to the inclusion of persons with disabilities in the workforce. Both products have also received the prestigious Label ISR seal provided by the French Ministry of Finance.
The success of MAPFRE's funds is combined with the sale of United Linked, such as the Open Multifunds, Asset Multifunds and the Horizonte Inversión Program. The first was launched in April 2019 and is formed by 4 baskets (conservative, moderate, moderately aggressive and very aggressive), of funds offered by national and international managers, adapting to the risk aversion of the customer, with the possibility of changing basket at any time. In addition, Asset Multifunds, whose second version began to be marketed in the middle of the year. It is a unit linked, flexible fund that allows both single and renewal premiums to be contracted. This product is constructed from equity mutual funds (risk) and a cash deposit (protection). It guarantees 80 percent of the maximum value reached at all times and, thus, at least 80 percent of the premium invested. Finally, the Horizonte Inversión Program, a product made up of different fund portfolios, has been welcomed and is adapted both to the risk profile of each customer and to the time horizon in which they wish to plan and maintain their savings. “In general, the strong performance in terms of profitability of our products and the greater visibility of our business in the media, has allowed the Commercial Network to take advantage of the moment to place value on our financial offer for their customers,” explains Segura.
In Pension Funds, despite the drop in contributions as a result of the worsening of the fiscal conditions of individual plans, inward transfers have evolved very positively (+21 percent) with a campaign of transfers, before summer, which was remarkably successful.
MAPFRE Gestión Patrimonial
Within MAPFRE Inversión, the strong performance of MAPFRE Gestión Patrimonial (MGP) is worth particular mention. The brand was created in October 2017 and provides MAPFRE customers with financial investment solutions to make their savings more profitable. In terms of the volume advised in open architecture it already comes to more than 1,174 million euros, which equates to growth of 55 percent year on year.