Mapfre president Antonio Huertas hopes the judicial process can be launched in the coming weeks over Oliver Wyman’s valuation of Bankia Vida, which is sold to CaixaBank following the rupture of the agreement with Bankia in the bank guarantee business.
This was confirmed on Thursday at APIE’s XXXIX Seminar ‘Sustainability and digitization: levers of recovery’, where he explained that work is still being done on demand.
The president of Mapfre announced in February that the company had decided to sue Oliver Wyman for “bad practices” in the valuation carried out by the firm Bankia Vida, because certain “relevant elements” were not included in its valuation.
This Thursday the Mapfre president detailed that the insurer continues to work on the declared claim. “It’s a complex process involving multiple expert evidence and extensive documentation. We want to do it right from the start, and hopefully this judicial process can be launched in the coming weeks. I can’t quantify when, but soon, “he said.
Regarding the arbitration process agreed by CaixaBank and Mapfre to submit the right Mapfre to receive an additional 10% of the values of life and non-life businesses, as well as CaixaBank’s obligation to pay that amount, Huertas explained that it is a process to it takes time and hope that it will be resolved before the end of the year.
Mapfre considers that, under the signed agreements, it is entitled to receive 120% of the valuation, since the Bankia merger represents a change of control, and CaixaBank insists that Mapfre is entitled to 110%, considering the merger as an extension of Bankia’s network.
The additional 10% compensation submitted to the arbitration procedure would be worth up to 52 million euros, depending on how the Bankia merger operation which led to the termination of the agreement is interpreted, and therefore the final amount to be done by Mapfre. could rise to 623 million euros.
He has no regrets not suing the Bank’s IPO
Among other things, the Mapfre president denied that he regretted not suing in his day for the money lost in Bankia’s IPO, after the Supreme Court endorsed that institutional investors could make a claim.
“Mapfre was not suing Bankia’s IPO at the time because we had external and internal analysts who indicated that we had no chance of success. He unanimously approved not to sue and there was no a shareholder who was opposed to that decision, because the process was completely impossible ”, he explained.
In this sense, Huertas has stated that he cannot repent of something that did not have a legal path, even though he wishes that the money lost in Bankia’s IPO was and could be recovered.
I CAN DO THE CRISIS WITH Algeria “Repentance”.
Huertas also asked him about the exposure of his business to the recent crisis in Algeria, Huertas admitted that they have a “small presence” in that country, but that the company is not “to stay in most non-company countries insurance. ” , as in the case of Algeria, so the country is not part of the group’s strategy development.
In any case, he described this conflict as “regret”, since “there were no problems and the companies were put between a rock and a hard place”. “I hope that the diplomatic world can, in a discreet manner, calm these differences that have arisen,” he said.
NOTE OUR PRESENCE IN TURKEY
As for Turkey, the president of Mapfre, when the company invested in the country more than a decade ago, recognized that Turkey was “a very important European power”. While acknowledging that circumstances have changed differently than desired, he said it is always a great country and “will have opportunities” when the turmoil subsides.
In any case, Mapfre maintains its presence in the country and, where it has to account for Turkish business as a hyper – inflated economy as required by the National Securities Market Commission (CNMV) and the Bank of Spain, “one of the two “, together with BBVA.
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