Spanish insurer becomes reference shareholder in Caixabank

Spanish insurance firm Mutua Madrileña has become one of Caixabank’s reference shareholders, after buying €280m worth of shares in Spain’s third largest lender.

Following the transaction, Mutua Madrileña holds 2.13% of Caixabank’s share capital, and becomes a major shareholder after CriteriaCaixa, which owns 46.9% of the capital.

Last Thursday, Caixabank launched a €1.3bn share sale through his financial firm Inbursa.

It emerged that two institutional investors bought €380m worth of shares in Caixabank: Mexican tycoon Carlos Slim bought around €100m, while Mutua Madrileña invested €280m.

The insurer has considered the operation “a long-term investment and an attractive investment opportunity”.

The operation is “an attractive investment opportunity particularly when fixed income, the traditional investment focus of the insurance sector, presents returns close to 0%,” said Ignacio Garralda, chairman of Mutua Madrileña.

Besides the potential increase in value of the investment in the medium and long term, the dividend yield offered by the entity at around 6% would boost the company’s financial results with more than €16m annually, the insurer said.

Mutua Madrileña managed assets valued at €6.9bn by the end of June, which is up by 2.7% year-on-year.


Alicia Villegas
Alicia Villegas speaks Spanish and Italian and is Iberia Correspondent for InvestmentEurope. She was shortlisted for the Rising Star Award at the British Media Awards 2017 and Writer of the Year at the PPA Independent Publisher Awards 2016. Previously, she worked for almost three years at the seafood business website Undercurrent News as a market reporter. In Spain, she also worked for more than five years for several media outlets.

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