In Mexico the BBVA Group operates in the pensions business through Afore Bancomer, in insurance through Seguros Bancomer, in annuities through Pensiones Bancomer and in health through Preventis. This business provides diversity and recurrent earnings for the area and Group as a whole, while not being dependent on credit and liquidity risk. It is also an activity with a low capital requirement, high efficiency ratio (25.2% in 2010) and high growth potential, above all in the insurance business. It is a unit with significant synergies with the banking business in distribution and the customer base. In 2010, the combined net attributable profit was €317m, 14.8% up on the previous year, amounting to 18.6% of the total profit in the area.
The pension business had a more favorable year than previous ones, due to the improvement in the labor market, economic activity and confidence. In this environment Afore Bancomer’s assets under management closed 2010 at €12,781m (+17.4% year-on-year), with increases in revenues and number of pension savers. This has resulted in an increase in net fee income to €162m, 19.9% up on 2009. There was also a positive performance in net trading income. As a result, Afore Bancomer’s net attributable profit amounted to €75m, 33.7% up on 2009.
The year was good for the insurance business, with a strong commercial performance by the Group’s three companies and all its business segments. Seguros BBVA Bancomer, one of the five main insurance companies in Mexico and a leader in the bancassurance business, has written €577m in premiums, 7.4% more than the previous year. It is worth highlighting that it has been named the best insurer in Mexico by the magazine World Finance for the diversity of its products, its growth in earnings and sustainability, among other positive aspects. Moreover, it was granted a top rating out of ten by the National Commission for the Protection and Defense of Users of Financial Services (Condusef) for its transparency, quality of information provided and diversity in the channels and products made available to customers. Pensiones BBVA Bancomer also had a positive year, writing premiums for €449m, up 43.2% on the figure for 2009. This commercial success, together with moderate claims levels and expenses, has resulted in a year-on-year increase of 10.0% in the net attributable profit for the insurance business as a whole to €243m.