March Vida generates 7.2% growth in premiums thanks to innovation in private banking savings products
08 February 2022 Category: Results
These excellent results are the result of innovation in products focused on Private Banking savers.
- The volume of insurance premiums sold in 2021 by March Vida, a wholly-owned subsidiary of Banca March, stood at €501 million, up 7.2% year on year, positioning the company twelfth in the ranking of life insurance providers in Spain.
- This growth came on the back of the insurance company's successful innovation in the development of specialist products for private banking customers: UL Revitalización Europa, the UL Executive Retirement Plan and the Individual Systematic Savings Plan (PIAS) Next Generation.
- UL Revitalización Europa is the first product of its kind in the market, allowing private banking customers to invest their savings in the sectors and companies set to benefit most from the deployment of the Next Generation EU funds.
- March Vida remains committed to its strategy of anticipating investment trends and changes in taxation; in recent years, this strategy has given rise to products such as PIAS Next Generation, aimed specifically at young savers, and the UL Executive Retirement Plan, which allows companies to offer their professionals an alternative savings option.
The volume of premiums sold by March Vida, a wholly-owned subsidiary of Banca March, stood at €501 million, up 7.2% year on year, positioning the company twelfth in the ranking of life insurance providers in Spain. In 2021, the balances under management by March Vida grew by 4.8% to stand at €1.71 billion. At the end of the year, March Vida had a portfolio of over 83,000 policies.
These outstanding results were driven by innovation in products designed for private banking customers. The latest new release, UL Revitalización Europa is the first unit-linked product offering savers the opportunity to invest in the sectors and companies set to benefit most from the deployment of the Next Generation EU funds, which will be channelled primarily into the following growth drivers: the digital transformation, the environmental transition and the European economic recovery. The vehicle is also pioneering in that it allows investors to combine liquid and illiquid assets in a single life-savings product with a minimum contribution of €25,000.
UL Revitalización Europea is the latest milestone in March Vida's proven strategy of anticipating new investment trends and changes in taxation with innovative products including the UL Executive Retirement Plan and the individual systematic savings plan (PIAS) Next Generation. Executive Retirement Plan has cemented its position as an alternative, tax-efficient savings solution for companies. This unit-linked solution is a collective life-savings insurance product which allows investors to avoid the reduction in the cap on annual tax allowances for pension plans brought in through the latest regulatory changes. PIAS Next Generation, another unparalleled product in the market aimed particularly at young savers, is a unit-linked Systematic Individual Saving Plan (PIAS) which allows savers to secure exposure to three megatrends identified by Banca March as a potential source of returns over the years ahead: Industry 4.0, Sustainability and the Environment and Demographics and Lifestyle.
In February 2021, Banca March signed an agreement with Generali for the distribution of life-risk and accident policies under a 50% coinsurance format with March Vida. Thanks to this agreement, the life-risk business generated growth in new business premiums and closed 2021 with a 29.9% increase in the volume of insurance premiums.
These strong results improved the company's capital adequacy ratio in 2021, from 161% at year-end 2020 to 169% at 31 December 2021.
Miguel Aquiso, Managing Director of March Vida, said: “The outstanding results we achieved in 2021 confirm that March Vida is continuing to cement its position as a provider of innovative products, anticipating trends such as sustainability and the digital transformation to offer private banking customers the very best savings solutions.”