José Boada will leave the presidency of Seguros Pelayo after 15 years in office. He will be replaced by Francisco Lara, current CEO, who will be proposed next March 11 at the Pelayo mutualists’ assembly. Boada leaves the post at the end of the years established by its statutes as the retirement age for retirement. His replacement will also coincide with the replacement of the vice president, Severino Martínez, by Anna Birules, current director and president of the Mutual Investment Committee and who was Minister of Science and Technology between 2000 and 2002.
Both changes are due to compliance with the Pelayo Bylaws, which set 65 years as the retirement age for executive directors and 70 years in the case of non-executive directors. Coinciding with both appointments, Pelayo has also planned to propose Francisco Gómez Alvado, current director of customers and supply, as the new general director in the vacancy that the future president will leave.
These are changes announced this Monday by Pelayo coinciding with the dissemination of the results corresponding to 2020, when it achieved a net profit of 8.2 million euros, which represents an increase of 103% compared to the previous year, thanks to the reduction in the accident rate in automobiles, the cost control and the risk selection strategy.
The turnover of Pelayo, the parent company of the Group, amounted to 344.9 million euros, with a year-on-year decrease of 4.8%, while its total policy portfolio exceeded 1.2 million, with a volume of customers close to one million and a share in the car market of 2.5%.
Despite the situation created by Covid-19, the mutual explained that it maintained an “excellent” level of solvency, standing 2.8 times above the required solvency amount, and with an available amount of 365.8 million euros. euros.
For business, auto billing, the most important branch in Pelayo, decreased by 6% and stood at 280.8 million due to the portfolio consolidation policy applied and the “price containment” strategy that it has maintained with its mutual members, in accordance with the surrounding economic situation. The portfolio of this branch has reached 814,842 policies.
For its part, the claims ratio stood at 59.3%, lower than the 67.8% recorded the previous year, thanks precisely to the company’s efforts to control costs, the commitment to a quality portfolio and the fall in the automobile accident rate with the less vehicle use during the pandemic. With this, the combined ratio stood at 94.9%, improving from 102.1% in 2019.
Agropelayo, a company formed with the agricultural businesses of Pelayo and Agromutua, in turn remained one of the leaders in the agricultural sector, with a market share of 17%. The company achieved a turnover of 136 million and a net profit of 0.4 million, in line with the previous year.
The life company, of which Pelayo is a 50% partner with Santalucía, in turn billed 12 million and managed funds worth 96.4 million euros. On the other hand, its result has been greatly affected by the influence of the drop in interest rates on the result of the savings business.
All in all, the Group’s net profit reached 11.5 million euros, with a year-on-year increase of 115.9%. Looking ahead to 2021, its priorities are “to maintain profitability, retain higher value customers, implement an omnichannel model and continue increasing business diversification.”