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Bancassurance

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THE BANCASSURANCE UNIT SELLS POLICIES FOR INDIVIDUALS AND COMPANIES, OFFERING CUSTOMERS SPECIALISED SUPPORT IN MAKING THEIR DECISIONS.

The sale of insurance is one of Bankia’s strategic business lines. For this purpose, Bankia has a Bancassurance Directorate, which is responsible for the distribution of life and non-life insurance and for the delivery of specialised support to the bank’s sales network.

The bank sells policies to cover the risks of individuals (life, home, auto, health and savings) and businesses (trade, credit insurance, general liability and comprehensive).

The BMN merger required a major effort in 2018 on the part of the Bancassurance Directorate to incorporate processes and operations that needed to be made consistent, as well as different suppliers.

The technology and workforce integration was carried out over the course of the year to strengthen the commercial area and unify branch support services.

Existing distribution agreements were also reorganised, so as to maintain a single, integrated model based on efficiency and service quality.

Within the framework of this reorganisation, Bankia completed the acquisition of 50% of Caja Murcia Vida (CMV) and Caja Granada Vida (CGV) from Aviva, so as to become the sole member of both these life insurance companies, and subsequently sold 51% to Mapfre, which thus became Bankia’s sole supplier throughout the branch network, except for the branches in the Balearic Islands, which will continue to distribute Caser products.

The exclusive agreement BMN had with Caser for non-life insurance has been terminated, with the result that Mapfre has become the sole supplier for the entire network.

Various steps were taken during 2018 to equip the branch network with appropriate tools for selling insurance, most notably the latest advances in home insurance sales and improvements in the management of the policy portfolio, as well as digital developments.

INDICATORS

As regards business performance, net premiums written during 2018 came to 519 million euros, thanks mainly to the performance of life and home insurance, especially funeral and health insurance.

New business was especially strong during the second half of the year in life risk insurance, with growth of 9% compared to 2017. Premium income from life risk insurance amounted to 115 million euros, without considering savings insurance. The focus in 2018 was on business insurance, the strongest performers being finance leases and credit insurance (+ 65% and + 219%, respectively).

At 31 December 2018 there were 2.6 million policies in force and the mathematical provisions for life savings insurance totalled 6,149 million.

The Bancassurance business’s contribution in direct fees and commissions arising from written premiums was 123 million euros.

The priorities in 2019 were to increase penetration of insurance as a driver of loyalty among Bankia customers, both individuals and businesses; ensure consistency in the teams’ sales activities; develop online sales in various business lines; and strengthen sales tools and actions that would boost the productivity of Bankia’s employees in this area.

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HIGHLIGHTS 2018

Bankia is set double the volume of its personalised advice service to digital customers by 2020

Bankia is set double the volume of its personalised advice service to digital customers by 2020

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Bankia strengthens its position as Spain’s fourth largest mutual fund manager, with nearly 17,000 million euros

Bankia strengthens its position as Spain’s fourth largest mutual fund manager, with nearly 17,000 million eurosd

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