Banc Sabadell | We analyse the strategic plan for 2018-19, concluding that its target of average ROE 19-20 of 20% is achievable, given that it would imply post tax profits of around 940 million euros and we forecast that it could best this.
Manuel Moreno Capa | Axa, Mapfre, Mutua and other big insurers have spent years settled solidly in the collective investment market, with their powerful fund managers. But today they are taking a step further: as insurers they are confronting what the experts call a structural fall in profits in their traditional business, they want to grow in others, but not only offering funds through their managers, but directly buying parts of the market, in other words other managers who bring their funds and their clients.
Leaving aside the hole left by the last hurricanes, insurance companies’ P&L accounts tell the story of a sector which has not suffered much in the context of zero interest rates. An insurer runs less of a risk in a context of zero interest rates than of a financial crisis.
Mari Pinardo | Insurance companies, particularly the European ones, are up against a rock and hard place due to the low interest rate environment, the need to look for long-term profitability, the lack of investor appetite and the impact of Brexit on European fixed income markets. This backdrop, coupled with the high level of fragmentation in the sector in Spain, is likely to lead to more consolidation in the short-term.