INDIVIDUAL LIFE INSURANCES
The year 2012 was a year of adjustments for the Individual Life Insurance market, basically due to the impact of changes to the taxation system applicable to Voluntary Pension Fund Savings (VPFS) instruments with insurance, implemented in December 2011, on VPFS premium revenue. Notwithstanding the above, CorpVida recorded sustained growth in this line of business, mainly driven by strong increase in flexible insurances with savings subject to the 57 BIS taxation regime and an excellent performance in Private Life Annuity sales. Premiums from new business transactions issued during the year grew by 14 percent with respect to the previous year, reaching 25 percent if considered based on their value (weighted premium). This significant growth was due to an increase in the proportion of marketed insurance premiums, growing from 23 percent to 28 percent of total premiums (the remaining portion corresponds to savings premiums). Likewise, the significance of flexible insurances grew to the detriment of the weight of VPFS insurances, which, until 2011, concentrated more than 80 percent of sales. The above is very positive, since flexible insurances are more profitable and have higher exit barriers, enabling expectations of an improvement in customer loyalty during the coming years. It is important to highlight that both sales channels, the Internal Channel (Company’s own sales force) and the External Channel (free agents and brokers), were able to meet their sales goals for the year, with remarkably strong growth in the external agent channel with respect to 2011 (40 percent), consistent with the strategy of continued strengthening of this channel as a way of diversifying insurance delivery through more profitable channels. Another outstanding aspect in annual management was an increase in the sales staff, with a 23 percent increase over the year, achieving a total of nearly 300 insurance and investment executives on a national level. The above was
ACTIVITIES AND BUSINESS
29