Grupo Catalana Occidente (GCO) Q2 2024 earnings summary

Executive summary

• Consolidated profit rose 10.6% to €380.3M in H1 2024, with turnover up 1.6% to €3,277.6M, driven by traditional and funeral business growth.

• Attributable profit reached €344.6M (+11.6% year-over-year), with technical result up 2.5% and financial result up 56.8%.

• Combined ratio for traditional business improved to 90.0% (-1.8 p.p.), while credit insurance's combined ratio increased to 74.7% (+3.3 p.p.).

• Permanent resources at market value increased to €6,188.4M (+7.8%), reflecting a strong capital position.

• Shareholder remuneration for 2023 totaled €134.12M, with dividends up 8.67%.

Financial highlights

• Traditional business written premiums grew 3.6% to €1,780.3M; recurring premiums up 6.1%.

• Credit insurance earned premiums declined 2.6% to €1,139.8M; technical result after expenses fell 13.3%.

• Funeral business income surged 26.3% to €135.5M, with EBITDA margin stable at 25.9%.

• Financial result improved 57.1% to €124.1M, supported by higher investment income.

• Share price closed at €37.8, up 22.3% year-to-date.

Outlook and guidance

• Focus remains on growth, profitability, and solvency, with continued product innovation and digitalization.

• Group expects to maintain strong solvency and stable financial performance despite sector and geopolitical challenges.

• Financial margin may decrease slightly in H2 2024 due to expected interest rate reductions, but savings products will remain attractive.

• Funeral business margins expected to improve through synergies and inorganic growth.

• Ongoing integration of sustainability and hybrid work models across the group.