GCO achieved a consolidated profit of 615.5 million euros in 2023, 13.4% more than in the previous year.

"Turnover stands at 5,792.6 million euros and highlights the growth in the Group's three business lines."

GCO closed 2023 with a 13.4% increase in consolidated profit compared to the previous year, reaching 615.5 million euros. Turnover, in turn, increased by 9.7% to 5,792.6 million euros. The Group thus obtained solid results, with improvements in its three strategic pillars: growth, profitability and solvency.

In the traditional business, made up by the companies that have merged into Occident (Seguros Catalana Occidente, Plus Ultra Seguros and Seguros Bilbao) as well as NorteHispana Seguros, which will merge at the end of this year, ordinary profit increased by 1.3% to 261.1 million euros, while turnover (written premiums) grew by 7.8% compared to 2022, amounting to 3,064.7 million euros. Of note by business lines was the growth in turnover in life, other and multi-risk at 10%, 8.7% and 6.9%, respectively. Meanwhile, the combined ratio in traditional business (non-life) was 92.6%, below the sector's average. The increase in the ratio by 1.8 p.p. (percentage points) compared with the previous year was mainly due to the rise in the cost of claims due to the effects of inflation.

The credit insurance business (Atradius Crédito y Caución) generated ordinary profit of 365.6 million euros, 3.1% more than in the previous year. Its turnover (premiums and information income) increased by 4.1% to 2,500.9 million euros. The gross combined ratio of credit insurance closed the year at 74.1%, 1.8 p.p. (percentage points) higher. In this regard, the credit insurance business continued to normalise, albeit with an inflow of claims somewhat below the pre-pandemic period. The risk selection process continued to be exhaustive and prudent provisioning was maintained.

The funeral business contributed ordinary profit of 13.6 million euros and income of 227 million euros. In 2023, this item incorporates Asistea's figures for the year and those of Mémora as of 9 February 2023, the date on which GCO completed its acquisition.

For GCO's Financial and Risk Management Officer, Clara Gómez, "the results obtained in 2023 demonstrate GCO's strength in all its business lines. Of particular note is the diversification of the Group's business, the resilience shown by the traditional business despite the inflationary environment, the stability of credit insurance and the contribution of the funeral business."

Financial strength

GCO maintains a solid financial and solvency position. At the end of 2023, its estimated solvency ratio was 232%, demonstrating the Group's robustness to withstand adverse situations. Permanent resources at market value increased by 16.7% to 5,738.8 million euros, while managed funds grew by 3.4% to 15,364.7 million euros.

In 2023, GCO's management was once again endorsed by the main rating agencies. Moody's upgraded the rating of the credit insurance business from A2 to A1 with a stable outlook, highlighting the positive evolution of Atradius in terms of solvency and financial strength. In addition, A.M. Best maintained its "A" (excellent) rating and stable outlook on the main operating entities in GCO's traditional business and credit insurance, a rating that highlighted the balance sheet's strength and proper risk management of the traditional business, as well as the soundness of its operating results.

Growing shareholder remuneration

In line with the Group's commitment to shareholder remuneration, its Board of Directors resolved at today's meeting to propose to the Annual General Shareholders' Meeting a 10% increase in the final dividend to be paid on 8 May 2024. GCO would thus distribute a total of 1.1177 euro per share (134.12 million euros), an increase of 8.67% compared to the previous year.

Sustainability

GCO has recently announced the publication of its new Sustainability Master Plan 24-26, which sets out its sustainability roadmap. The Plan is based on the new materiality approach required by the Corporate Sustainability Reporting Directive and is structured on four pillars (Good Governance, Sustainable Business, Social Commitment and Environmental Responsibility), on which ten strategic lines of value creation and contribution to the well-being of society have been defined.

Public link

Please use the above public link if you want to share this noodl on another website.