Despite the macroeconomic context, GamaLife continues to invest in its business and maintains a solid capital position thanks to its conservative risk profile.
Production in the first half of 2022 shows very stable premiums in risk products at EUR 28.8 million compared to EUR 28.7 million in 2021, while production in saving products is down from EUR 240 million to EUR 108 million due to high market volatility affecting unit linked sales.
Half-yearly costs have increased from EUR 11.2 million to EUR 11.7 million, reflecting new recruitments as well as project costs such as preparation for the implementation of IFRS17 and IFRS9, and the announced acquisition in Italy.
Overall, GamaLife recorded a net profit of EUR 86.4 million for the half year, an increase of 142% compared to the same period last year. However, the net result was primarily driven by the near complete release of the provisions for rate commitments (Liability Adequacy Test), totalling EUR 109 million pre-tax. The requirement for these provisions depends on the interest rates of Portuguese public debt and therefore can create volatility in the company’s accounts which is not truly reflective of the performance of the business.
On the other hand, the increase in interest rates and credit spreads also had an offsetting effect in asset valuations and net equity in June 2022.
“I am pleased with the resilience of our business in such difficult markets, which allows us to continue focusing on our clients, supporting our distributors and building our operations. We are making good progress in the preparation for the opening of our branch in Italy and we expect to close the acquisition of the Zurich business unit by the end of the year,” said Matteo Castelvetri, CEO of GamaLife.
GamaLife is a pan-European life and wealth insurance management platform founded in 2019 and operating mainly in the areas of technology and sustainability.
In Portugal, the Company’s total turnover in 2021 amounted to €602.6 million. At the end of 2021, GamaLife was the fifth largest insurer in the country in Life with a premium market share of 7.8%.
GamaLife’s mission is to serve the end client in his protection and savings concerns; to serve the distribution channels with levels of service excellence and to consolidate the business and its organisational structure, adding value for shareholders and employees.
For more information see www.gamalife.pt or contact:
Hugo Real | email@example.com | 927 997 948 (Press)
José Coelho | firstname.lastname@example.org | 918 928 941 (Press)