Spanish credit union Caja Laboral has recently acquired all the shares in ICMIF member Seguros Lagun Aro which operates in both life and non-life insurance. Caja Laboral has taken 100% control of Seguros Lagun Aro after a payment of 65 million euros, which was an internal transaction with the Mondragón Corporation, the parent company of both Seguros Lagun Aro and Caja Laboral.
Seguros Lagun Aro has a significant presence within the Basque insurance sector. In a year which has seen a dramatic fall in vehicle registrations and property sales Seguros Lagun Aro is, however, expecting a considerable increase in profits this year as a result of improving loss ratios, customer loyalty and controlling management expenses, due to the following:
- Turnover is expected to reach 210 million euros by the end of the current accounting year which would be an increase of 9.4% on the previous year
- Number of customers rising to 376.000, an increase of 1.5%
- 2011 pre-tax profits will be in the region of 15 million euros which is an increase of 30% on 2010
As part of its future strategy Caja Laboral expects to maintain its position as a market leader in terms of quality of service; substantially furthering its unique value proposition to customers to meet the financial and insurance needs of families and businesses. The financial and insurance businesses currently share the same branding and commercial policies and the future integration of the insurance offer will be aimed towards increased assessment and personalisation in accordance with the profile and needs of the Caja Laboral customers.
Caja Laboral has a client base of some 12 million people which presents opportunities to significantly drive the insurance business forward to individual customers in the motor and SME sectors.
Through this purchase the Caja Laboral Group is laying the foundations for its future strategy in which their customer proposition will offer increased levels of specialisation and multi-channels and which will continue to be based on the cooperative values which have always been key to Seguros Lagun Aro and parent company the Mondragón Corporation.