The strategic alliance between the department stores and the insurer excludes pension plans.

The strategic alliance between the department stores and the insurer excludes pension plans.

The strategic alliance between the department stores and the insurer excludes pension plans.

Mutuactivos, the manager of Mutua Madrileña.

The shareholder agreement and the strategic alliance that have sealed El Corte Inglés and Mutua Madrileña It will force department stores to liquidate other previous agreements they had with third-party financial entities. This is the case of the one they still maintain today with Andbank for the distribution of investment funds, a business of around 300 million of euros that will be controlled by the insurer.

Its brokerage, El Corte Inglés Seguros, acts as Andbank’s financial agent. The Andorran bank took over this business within the purchase package of the personal and private banking of Inversis Banco, which it integrated in 2014 and with whom the department stores previously collaborated.

This business intermediates just over 300 million in funds in a nucleus of 30 specific points of sale within El Corte Inglés. Although it is the advisers of El Corte Inglés Seguros who recommend one fund or another, these operations are intermediated through the Andbank platform.

Andbank, headquarters in Andorra.

Andbank, headquarters in Andorra.

However, the agreement reached by El Corte Inglés and Mutua Madrileña implies the exclusiveness of financial products and services (life and non-life insurance, as well as investment funds) for the latter, so the chain run by Marta Álvarez will have to negotiate its separation from Andbank sooner rather than later and it will be Mutua Madrileña who do with this game.

Sources familiar with the agreement explain that, when an El Corte Inglés client requires an investment fund, financial advice or discretionary portfolio management, they will be provided with Mutuactivos’ solutions, with their own funds. And in the case of international funds from third-party managers, they will also be provided through funds of funds, portfolios or unit linked of Mutuactives.

The only thing that could be saved and remain On the sidelines is the shareholding that El Corte Inglés Seguros has in MyInvestorthe neobank in which Andbank, AXA and others also own part of the capital family offices institutional. It is a separate financial investment with which El Corte Inglés Seguros has been comfortable given the growth of the neobank. Despite everything, this point still has to be ratified and nothing can be taken for granted.

No pension plans

Another relevant aspect of the agreement between El Corte Inglés and Mutua Madrileña is that pension plans are excluded in a first phase, according to the sources consulted. The insurer chaired by Ignacio Garralda will only distribute insurance and investment funds among department store customers.

For now, the insurer will be left with the desire to grow in a business that continues to be its weak point, since of the more than 8,500 million euros in assets managed by its manager, only 360 million correspond to pension plans. Her opportunity to accelerate in this niche through a partner of such magnitude as El Corte Inglés has been blocked for the first stage.

El Corte Inglés Seguros manages almost 120 million on its own through three pension plans, with data from Inverco.

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