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1. Company Snapshot

1.a. Company Description

Grupo Catalana Occidente, S.A., together with its subsidiaries, provides insurance products and services worldwide.The company operates through Traditional Business and Credit Insurance Business segments.The company offers multi-risk products and services related to family home, stores, retail, blocks of flats, offices, and SMEs; life insurance products, such as risk, savings, pension plans, and investment funds, as well as funeral and health insurance; machinery breakdown; electrical equipment; and motor insurance.


It also provides other insurance products, such as industrial products, accidents, transport, and third-party and civil liability; and credit and surety insurance, as well as reinsurance.In addition, the company is also involved in the real estate development business; and stock broking business.It markets its products primarily under the Seguros Catalana Occidente, Plus Ultra Seguros, Seguros Bilbao, NorteHispana Seguros, Crédito y Caución, Atradius, and Atradius Re brands.


The company was formerly known as Catalana Occidente, Sociedad Anónima de Seguros y Reaseguros and changed its name to Grupo Catalana Occidente, S.A. in 2001.The company was incorporated in 1864 and is headquartered in Madrid, Spain.Grupo Catalana Occidente, S.A. is a subsidiary of INOC, S.A.

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1.b. Last Insights on GCO

Grupo Catalana Occidente, S.A.'s recent performance is driven by its robust dividend yield and defensive stock characteristics. The company's ability to provide consistent payouts and stability amidst market fluctuations makes it an attractive option for income-seeking investors. The pan-European STOXX Europe 600 Index's longest streak of weekly gains since August 2012 and investors' focus on dividend stocks further support the company's position. Additionally, the company's share buyback program in 2023 (Source: Reuters) demonstrates its commitment to returning value to shareholders.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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Grupo Catalana Occidente (BME:GCO): Is There More Value After Strong Share Price Gains?

Nov -01

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Grupo Catalana Occidente (BME:GCO) Earnings Jump 18.5%, Reinforcing Narrative of Strong Profit Momentum

Nov -01

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Grupo Catalana Occidente SA (STU:OCZA) Q3 2025 Earnings Call Highlights: Strong Financial ...

Oct -31

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Grupo Catalana Occidente SA (STU:OCZA) Q2 2025 Earnings Call Highlights: Strong Growth Amid ...

Aug -01

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AM Best Affirms Credit Ratings of Occident GCO, S.A.U. de Seguros y Reaseguros

Jul -17

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Grupo Catalana Occidente SA (STU:OCZA) Q1 2025 Earnings Call Highlights: Strong Turnover and ...

May -06

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Top European Dividend Stocks To Consider In March 2025

Mar -06

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3 Top Dividend Stocks Yielding Up To 6.7%

Jan -06

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.67%)

6. Segments

Credit

Expected Growth: 9%

Grupo Catalana Occidente's 9% credit growth is driven by a strong Spanish economy, increasing consumer confidence, and a growing demand for insurance products. The company's diversified business model, solid risk management, and efficient cost structure also contribute to its growth. Additionally, strategic partnerships and expansion into new markets have enhanced its credit offerings, further fueling growth.

Multi-Risk

Expected Growth: 11%

Grupo Catalana Occidente's 11% growth in Multi-Risk is driven by a combination of factors, including a strong underwriting cycle, favorable claims experience, and a solid investment portfolio. Additionally, the company's diversified business mix, robust risk management practices, and strategic expansion into new markets have contributed to its impressive growth.

Life

Expected Growth: 8%

Grupo Catalana Occidente's 8% growth in Life segment is driven by increasing demand for protection and savings products, expansion into new markets, and strategic partnerships. Additionally, the company's digital transformation efforts and improved customer experience have contributed to the growth. Furthermore, the Spanish economy's steady growth and low interest rates have also supported the segment's expansion.

Various Others

Expected Growth: 12%

Grupo Catalana Occidente's 12% growth in Various Others segment is driven by increasing demand for non-life insurance products, expansion into new markets, and strategic partnerships. Additionally, the company's focus on digital transformation, cost optimization, and effective risk management have contributed to its growth momentum.

Motor

Expected Growth: 10%

Grupo Catalana Occidente's Motor segment growth is driven by increasing demand for motor insurance in Spain, expansion into new regions, and a strong distribution network. Additionally, the company's digitalization efforts and competitive pricing strategy have contributed to its 10% growth. Furthermore, the segment has benefited from a favorable regulatory environment and a growing middle class with increasing disposable income.

7. Detailed Products

Life Insurance

Provides financial protection to the policyholder's family in the event of death or terminal illness.

Health Insurance

Covers medical expenses, including hospital stays, surgeries, and doctor visits.

Accident Insurance

Provides financial protection in the event of accidental death or disability.

Home Insurance

Covers damages or losses to a policyholder's home and its contents.

Motor Insurance

Covers damages or losses to a policyholder's vehicle.

Liability Insurance

Protects policyholders from financial losses in the event of a lawsuit or claim.

Savings and Investment Products

Offers a range of savings and investment options to help policyholders achieve their long-term financial goals.

8. Grupo Catalana Occidente, S.A.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Grupo Catalana Occidente, S.A. is medium due to the presence of alternative insurance providers in the market.

Bargaining Power Of Customers

The bargaining power of customers for Grupo Catalana Occidente, S.A. is low due to the company's strong brand reputation and customer loyalty.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Grupo Catalana Occidente, S.A. is medium due to the company's dependence on a few large suppliers for certain services.

Threat Of New Entrants

The threat of new entrants for Grupo Catalana Occidente, S.A. is low due to the high barriers to entry in the insurance industry, including regulatory requirements and capital requirements.

Intensity Of Rivalry

The intensity of rivalry for Grupo Catalana Occidente, S.A. is high due to the competitive nature of the insurance industry, with many established players competing for market share.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 2.98%
Debt Cost 3.95%
Equity Weight 97.02%
Equity Cost 9.28%
WACC 9.12%
Leverage 3.08%

11. Quality Control: Grupo Catalana Occidente, S.A. passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Mapfre

A-Score: 7.9/10

Value: 6.8

Growth: 6.6

Quality: 7.2

Yield: 8.1

Momentum: 10.0

Volatility: 8.7

1-Year Total Return ->

Stock-Card
Aviva

A-Score: 7.5/10

Value: 6.5

Growth: 5.4

Quality: 5.7

Yield: 9.4

Momentum: 9.0

Volatility: 9.3

1-Year Total Return ->

Stock-Card
Grupo Catalana Occidente

A-Score: 7.3/10

Value: 8.1

Growth: 4.3

Quality: 7.8

Yield: 5.6

Momentum: 8.0

Volatility: 10.0

1-Year Total Return ->

Stock-Card
ASR Nederland

A-Score: 7.1/10

Value: 5.7

Growth: 4.1

Quality: 6.2

Yield: 8.8

Momentum: 8.0

Volatility: 9.7

1-Year Total Return ->

Stock-Card
Unipol Gruppo

A-Score: 7.0/10

Value: 6.6

Growth: 3.7

Quality: 6.6

Yield: 8.8

Momentum: 9.0

Volatility: 7.3

1-Year Total Return ->

Stock-Card
NN Group

A-Score: 6.8/10

Value: 4.3

Growth: 3.3

Quality: 7.2

Yield: 8.8

Momentum: 8.0

Volatility: 9.3

1-Year Total Return ->

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

49.35$

Current Price

49.35$

Potential

-0.00%

Expected Cash-Flows