El’s board will seal an alliance, with , which arouses strong interest and will shake up the insurance board. Its importance does not lie in the novelty of the activity itself, since it is an almost historical business for the distribution group: it launched its insurance brokerage in 1982 and the life and pensions subsidiary in 1989.
Over time it was incorporating products and agreements with specialists. Allianz, Axa, Génesis, Pelayo, Fénix Directo, Ocaso, Asisa, Sanitas, DKV… There is a long list of companies in its offer, with a more than extensive catalog of coverage of almost all branches and whose relationship will be discontinued now.
Translated into numbers and with data from 2020 -the latest published-, the group chaired by Marta Álvarez entered with the insurance activity 211 million euros in premiums and reached an Ebitda of 92 million, which grew 3.1% annually. Its size by premiums would be the equivalent to the number 40 insurance company, in line with the insurance business of Kutxabank, AIG Group or Mediolanum.
However, and this is where the greatest interest lies, the agreement is somewhat unusual and its importance transcends its current size. It’s more like what will happen in the future. It will be the first time that it will accommodate its factory and offer to the interests of the client without being general catalog coverage in the insurer that subscribes them.
Grupo Mutua opens up a network of more than 2,000 points of sale and a potential flow of 15 million customers, who usually go to the establishment on a regular basis and not only when they take out the policy, so they will be offered more relationship opportunities -linking-contracting.
In distribution, there are dozens of alliances to offer coverage and the alliances go even further, since insurers have turned fintech, electricity, telephone operators, real estate companies into prescriber allies… The difference in this pact is the wealth of catalog that can be incorporated and that exceeds those offered by other types of ‘partners’ (travel, life, home, pensions, cars, sporting goods coverage, household appliances, health…)
For many companies that will see their agreements expire now, the loss of business may not be a big bite, although others will tend to seek to compensate for the lower income and could easily even offer attractive discounts to retain the customer they achieved through El Corte. English when your policies expire.
The Mutua Group will invest 1,105 million to become it and its significant shareholder, with 8% of the capital owned. And the alliance opens up a new network, physical and digital, which, well managed and squeezed, can push others to make a move.
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