The National Commission of Markets and Competition (CNMC) has already authorized the entry of Mutua Madrileña in El Corte Inglés. The insurer will acquire 50.01% of each of the two companies that carry out the insurance activity of the department stores, that is, SECI (Life and Accident Insurance) and CESS (Insurance Brokerage) for an amount of 550 million euros. To this is added the disbursement of 555 million to acquire 8% of the distribution group, in which it will be represented by Ignacio Garralda, the president of Mutua.
«This decision, which is adopted after the General Directorate of Insurance, dependent on the Secretary of State for the Economy, also approved the operation on March 1, will allow the final sale of the shares and access to the governing and management bodies of this insurance business”, reported the insurer, which has released the Competition ‘OK’ during the 2022 mutual general meeting.
In addition, the endorsement of the CNMC has been without conditions for the parties.
The agreement, for 1,105 million, was announced in the latter part of 2021. Mutua becomes the exclusive provider of life and non-life insurance for the El Corte Inglés group. And it also enters as the exclusive provider of investment funds for the distribution group. Mutuactivos will exclusively distribute its portfolio of savings and investment products among the distribution company’s customer base.
Thus, as announced at the time, the Seguros El Corte Inglés brand will be maintained, its international projection and «the creation of innovative and advanced products that adapt to the needs of customers; all this supported by a great analytical and data management experience. Both groups also provide for the maintenance of 100% employment.
Beyond this, the meeting of mutual members also served to convey a message of calm to customers. Ignacio Garralda recalled that, in line with the price containment strategy followed in recent years, during 2022 the company’s objective is to freeze the amount of insurance for about 50% of auto policyholders.
Even so, the president of the Mutual added that “out of prudence they will carry out a permanent monitoring of the evolution of the CPI and other variables that influence the rates in order to be able to adjust their application.”
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