1 ANNUAL 20 REPORT 12
2 THE COMPANY Company Identification Ownership of the Company Historical Background Branch Network MACROECONOMIC PERFORMANCE Economic Environment in 2012 Investment Portfolio MANAGEMENT Board of Directors Organization Chart Corporate Governance ACTIVITIES AND BUSINESS Life Annuities Individual Life Insurances Mass Delivery Insurances Consumer Credit
3 BUSINESS SUPPORT AREAS Customer Service Digital Media Marketing Operations and Technology Comptroller s Area and Risk Management Administration and Finance CORPORATE SOCIAL RESPONSIBILITY HUMAN RESOURCE AND DEVELOPMENT AREA AUDITED FINANCIAL STATEMENTS Independent Auditors Report General Balance Sheets Cash Flow Statements Reconciliation of Net Result and Operating Flow Notes to the Financial Statements
4 LETTER FROM THE CHAIRWOMAN 4 I am pleased to present you with CorpVida s Annual Report and Financial Statements for the financial period January 1 to December 31, CorpVida has become one of the most relevant participants in the domestic insurance market, being ranked among the top performers in terms of market share in Life Insurances. The above is the result of a sound and ongoing growth and consolidation process which we will strongly continue pursuing during the coming years. This excellent business result has been achieved thanks to an increase in sales in all the business lines in which we participate, excelling in Life Annuities, with a 27 percent growth, and in Individual Insurances, with a 14 percent increase with respect to the previous year. During the year, we continued working on providing the best service to our customers, incorporating significant improvements into our products, processes, and service and sales channels. We are convinced that only by providing a service of excellence and based on high standards, will we be able to maintain our leading position. Within the financial investment context, the search for new investment alternatives was furthered, increasing our investment in international debt by 14 percent, especially in Latin American fixed-income instruments. As a result of this, we have been able to reduce risk through wider diversification, concurrently managing to increase portfolio returns. On an overall portfolio basis, we attained an exceptional 90 percent increase in the investment product as compared to the previous year. The real estate investment share in our portfolio continues to increase, with concurrent diversification in different asset classes, generating higher returns. There were important changes in the regulatory area, among which the enactment by the Superintendency of Securities and Insurance (SVS) of General Regulation NCG No. 325 deserves special mention. This regulation issues instructions concerning the risk management system applicable to insurance companies as well as creditworthiness evaluation of insurance companies by the SVS, which is a new development in the implementation of the Risk- Based Supervision model. This Board of Directors has addressed these changes with special motivation and interest, by working throughout the year in the different Corporate Governance committees, thereby adhering to the new regulation with strong commitment. I would like to highlight the three big challenges that we have proposed for ourselves as a Company in face of our collaborators. The first one has to do with the generation of actions designed to internalize and strengthen the new
5 Company values. These are: Orientation to the Customer, Excellence, Responsibility, Team Work Innovation, and Passion. We have structured this plan into three broad phases: value dissemination in 2012, value internalization in everyday work in 2013, and value strengthening in 2014, and we want them to become part of the Company s culture and identity. We are endeavoring to improve the workplace. We feel very proud of the progress made during 2012, where we showed substantial improvement in the evaluation made by our collaborators concerning their work environment or climate, with 72 percent in Corporate Vision (18.6 percent improvement with respect to 2011) and 79 percent in Vision of the Area (11 percent improvement with respect to 2011), by applying the Great Place To Work methodology. Our challenge is to continue implementing enhancements, with the active involvement of all our teams, the same as we did in Furthermore, we believe that investment in human capital is highly relevant, and consequently, we provided training and professional development to our collaborators with the aim of improving and strengthening their work competencies. This had a positive impact on the organization s performance. We provided 1,600 training sessions, i.e., more than 40,600 work hours. Likewise, we benefited 7 of our collaborators with scholarships to pursue technical and university degree programs. During this year, the Company made progress in its commitment to the community and sustainability. We continued all the projects implemented during the previous year, and a number of activities were carried out enabling strengthening of our commitment to culture dissemination, the environment, and the inclusion of people with cognitive disability. In this area, we were recognized by SENCE-Ministry of Labor and Social Security through the Recognition as Inclusive Company award and by the Emplea España and Arando Esperanza Foundations through a recognition award for our Support to Labor Market Inclusion of People with Disabilities. Finally, I wish to thank the members of the Board of Directors and all our collaborators and their families, who, in their different roles and responsibilities, assumed the Company s challenges as their own, contributing each day the best of their knowledge, their skills, and their passion to help our Company become not only a relevant participant in the Insurance market, but also an attractive place to work and share goals every day. I feel proud of being able to rely on a professional team of excellence, and I am certain that, based on the aforementioned, we will continue progressing along a path of growth and development. Sincerely, María Catalina Saieh Guzmán Chairwoman 5
6 Our values are the foundation for our attitudes and motivations, acting as driving forces and becoming the backbone of our performance. 6 MANAGEMENT
7 THE COMPANY 1
8 THE COMPANY COMPANY IDENTIFICATION LEGAL NAME COMPAÑÍA DE SEGUROS CorpVida S.A. LEGAL ADDRESS ROSARIO NORTE N 660, PISO 21, LAS CONDES, SANTIAGO CHILE TELEPHONE / FAX WEB SITE TAX NUMBER TYPE OF CORPORATION CLOSELY HELD CORPORATION, subject to special regulations (Law 18,046, Art. 126). The Incorporation Deed, dated November 14, 1989, was witnessed by the Santiago NOTEry Public Mr. Victor Manuel Correa Valenzuela. Its existence was approved pursuant to Exempt Resolution No. 190 of the Superintendency of Securities and Insurance on December 13, 1989.
9 THE COMPANY OWNERSHIP OF THE COMPANY CORPVIDA SHAREHOLDERS CorpGroup Vida Limitada, Tax Number 76,080,631-5, with 590,695 subscribed and paid-up shares, representing percent, and Mass Mutual (Chile) Limitada, Tax Number 76,651,100-7, with 228,300 subscribed and paid-up shares, representing percent. REINSURERS Mapfre Re, Hannover Re, RGA Re, Scor, Swiss Re. AUDITORS Deloitte Touche Tohmatsu Limitada 9 RISK RATING FIRMS ICR Compañía Clasificadora de Riesgo Ltda. AA (Sept.2012) Feller-Rate Clasificadora de Riesgo Ltda. AA- (June 2012) INSURANCES Fire (Contents) UF 28,200 Theft UF 28,200 Electronic Equipment UF 55,200 Civil Liability UF 10,000 G.O. Employee Fidelity C.A. Employee Fidelity 24 base remunerations 24 base remunerations DIVIDEND POLICY As regards the dividend policy, the Company is governed by Law 18,046, Article 79.
10 LA COMPAÑÍA HISTORICAL BACKGROUND 10 Our inception dates back to 1989, when the corporation Compensa Compañía de Seguros de Vida S.A., our first legal name, was created. In 1995, CorpGroup and the U.S. consortium Mass Mutual International incorporated Compañía de Seguros Mass Seguros de Vida S.A.; the following year, they purchased Compensa Compañía de Seguros de Vida S.A., whose name was changed to Compañía de Seguros Vida Corp S.A. With the aim of consolidating its market share, Mass Seguros de Vida S.A. merged with Compañía de Seguros Vida Corp S.A. in 2000, whereby the former was dissolved and the latter became one of the soundest life insurance companies in the country. After the physical merger by mid-2006 of the companies comprising the CorpGroup Holding in its modern corporate building, the decision was made to unify their corporate images in order to strengthen the idea that they are part of a single financial group. And thus, on October 1, 2007, the name of our Company was changed to Compañía de Seguros CorpVida S.A. At the end of 2009, CorpGroup formalized the purchase of ING Chile s life annuity and mortgage loan note assets within the framework of its business expansion and growth strategy, giving rise to the CorpSeguros S.A. insurance company. The latter was successfully and efficiently incorporated into the Group s company portfolio, attesting to the Group s interest in consolidating a leading position in the domestic insurance industry. CorpVida and CorpSeguros comprise one of the most relevant insurance groups in the country, with more than 340,000 customers and 19 branch offices throughout the country and leading the market with close to US$8 billion in managed assets. As a result of the experience and track record attained over more than 20 years of existence, CorpVida has become a company with an outstanding presence in this business. Its main mission is to ensure the future and tranquility of people, a promise that we can meet because we rely on the commitment and work of a professional team that is highly qualified and motivated to provide to our customers excellence in the consulting, services, and products that they demand from us.
11 LA COMPAÑÍA RED DE SUCURSALES BRANCH NETWORK Fax: SANTIAGO Head Office Rosario Norte 660, Piso 21 - Las Condes Santiago Centro Miraflores 222, Pisos 4, 5 y 6 REGIONS Arica 7 de Junio 268, of. 820 Iquique Aníbal Pinto 444 Antofagasta San Martín 2530 Calama Ramírez 1841, of. 201 Copiapó José Joaquín Vallejo 535, of. 404 La Serena Balmaceda 428, Local 1 Viña del Mar Avenida Libertad 758 Rancagua Coronel Santiago Bueras 614, local 8 Curicó Prat 113 Talca Uno Sur 841, Local 5 Chillán Constitución 492, of. 302 Concepción Caupolicán 242 Los Ángeles Colo Colo 411, of. 405 Temuco Manuel Bulnes 645 Valdivia Independencia 521, of. 307 Osorno O Higgins 485, of. 308 Puerto Montt Benavente 550, of Punta Arenas Roca 975, Local 2 11
12 All our achievements, no matter how small, require our effort, commitment, and talent; they don t come about by magic, they are the result of our passion for what we do.
13 MANAGEMENT 2
14 BOARD OF DIRECTORS MANAGEMENT AS OF DECEMBER 31, 2012 CHAIRWOMAN OF THE BOARD María Catalina Saieh Guzmán VICE CHAIRMAN OF THE BOARD Fernando Jorge Siña Gardner 14 BOARD MEMBERS Jorge Andrés Saieh Guzmán Alejandro Ferreiro Yazigi Bruce Stanforth Charles Naylor del Río Francis Lucchesi MANAGEMENT
15 ORGANIZATION CHART CHRISTIAN RODRIGO ABELLO PRIETO Chief Executive Officer Commercial Engineer Universidad Católica de Chile ENRIQUE EDUARDO MARGOTTA SAAVEDRA Comptroller Auditing Accountant Universidad Tecnológica Metropolitana XIMENA ANDREA KAFTANSKI ARANCIBIA Legal Counsel Attorney Universidad Adolfo Ibáñez MAURICIO ANTONIO FASCE PINEDA Commercial Engineer Universidad de Concepción GUILLERMO ALBERTO OSSES GARCÍA Operations and Technology Manager Civil Engineer Universidad de Chile RAÚL ANTONIO AHUMADA HADDAD Technical Manager Industrial Civil Engineer Universidad Católica de Chile GERMÁN OSVALDO TAGLE O RYAN Investment Manager Commercial Engineer Universidad Católica de Chile SYLVIA YAÑEZ MORENO Human Resource Manager Commercial Engineer Universidad Católica de Chile 15 MANAGEMENT
16 CORPORATE GOVERNANCE CorpVida s Corporate Governance structure faithfully reflects the spirit of its shareholders. It is based on sustained and effective oversight of the Company s business, appropriate involvement of Board Members in decision-making, and efficient compliance with the regulatory model. To ensure effective Corporate Governance, the Company has implemented Board and Management Committees: 16 MANAGEMENT
17 BOARD COMMITTEES GOVERNANCE COMMITTEE This committee oversees compliance with the Corporate Governance structure and the application of the policies governing each Board Committee. HUMAN CAPITAL COMMITTEE This committee oversees the Company s overall HR function, ensuring compliance with General Dissemination and Communication Policies, both internally and externally, and the application of the provisions contained in the Code of Ethics and Conduct as well as all other policies defined by the Board of Directors pertaining to this area. TECHNICAL COMMITTEE This committee supervises the actuarial function and applies and oversees the implementation of the Pricing, Risk Underwriting, Reserve, and Reinsurance Policies. 17 AUDITING COMMITTEE This committee executes and supervises compliance with the Internal and External Auditing Policy and Plan. It is responsible for the evaluation of the performance of external auditors, and executes and supervises compliance with the Risk Management System defined by the Board of Directors. In addition, it oversees the application and management of the Compliance Policy as well as proper application of the Customer Service and Information Policy together with claim and complaint management. STRATEGIC DEVELOPMENT COMMITTEE This committee supervises the implementation of the Company s Annual Plan defined by the Board of Directors and containing the projected strategic direction and market positioning for the current period. MANAGEMENT
18 CORPORATE GOVERNANCE 18 INVESTMENT COMMITTEE This committee determines and applies the Investment and Derivative Policy and the Asset and Liability Management Policy (ALM). MANAGEMENT COMMITTEES MANAGERS COMMITTEE This committee conducts, analyzes, coordinates, receives inquiries, and follows up on the main projects and issues related to the needs and performance of both Company management and the defined strategy. TECHNOLOGY COMMITTEE This committee periodically reviews the status of new developments and establishes priorities in accordance with the Company s strategy, reviews any incidents and related mitigation actions, and in general, supports the Technology area in all matters under its competence. ALM COMMITTEE This committee proposes actions and ensures that Company asset and liability management is conducted in a coordinated way, within regulatory limits, and in accordance with the Company s strategic objectives. LIFE ANNUITY COMMITTEE This committee analyzes the behavior of Company sales and costs for this line of business, by product and channel, with respect to the budget. It also reviews the behavior of competitors and business main management variables and reports the status of the main action plans. INDIVIDUAL LIFE INSURANCE COMMITTEE This committee analyzes the behavior of Company sales, revenue, expenses, staff, persistence, and returns for this line of business, by product and channel, with respect to the budget. It reviews the behavior of competitors and business main management variables and reports the status of the main action plans. MASS DELIVERY INSURANCE COMMITTEE This committee analyzes the behavior of Company sales, revenue, and claim risk for this line of business, by sponsor, with respect to the budget. It reviews the behavior of competitors and business main management variables and reports the status of the main action plans. CLAIM COMMITTEE This committee reviews and analyzes all claim cases, based on established and detailed criteria, in order to issue a resolution. It reviews and analyzes the criteria and policies related to claim settlement in order to take the necessary improvement or remedial actions concerning general or particular condition packages or existing settlement standards. CUSTOMER AND QUALITY COMMITTEE This committee reviews customer satisfaction MANAGEMENT
19 levels with the Company in relation to competitors and the main customer satisfaction management variables. It analyzes the behavior of Company service indicators with respect to the standards defined for each channel and reports the status of the main action plans RISK MANAGEMENT COMMITTEE This committee develops and proposes Risk Management strategies, policy, and methodologies. Additionally, it proposes the acceptable risk level (risk appetite) to be reviewed and approved by the Board of Directors. It ensures compliance with Integral Risk Management policy, methodology, and responsibilities. PRICE COMMITTEE This committee follows up on key indicators associated with Company sales and its competitive edge. It approves the necessary adjustments to ensure Company objectives are met. CONSUMER CREDIT COMMITTEE This committee analyzes the behavior of Company sales, costs, and return for this line of business, with respect to the budget. It reviews the behavior of competitors and business main management variables and reports the status of the main action plans. The aforementioned committee structure has enabled strengthening and consolidation of Corporate Governance within the Company through effective oversight of business and activities by the Board of Directors as an essential element for proper Corporate Governance performance. These committees are a channel for the application of Corporate Governance principles and concepts in accordance with the Company s standing, recognizing the nature, scope, complexity, and profile of its business. Thanks to this Corporate Governance structure, the Company was able during 2012 to develop and complete several projects and achievements, among which the following are outstanding: the creation and updating of a series of Internal Policies and a Code of Conduct, compliance with regulatory requirements, consolidation of the Risk Management System, and materialization of investment projects. 19 MANAGEMENT
20 TEAM WORK When you act with PASSION, you are an inspiration to others.
21 MACROECONOMIC PERFORMANCE 3
22 MACROECONOMIC PERFORMANCE ECONOMIC ENVIRONMENT IN 2012 During 2012, the global economy managed to perform better than initially expected. The instability of the Eurozone during the first half of the year, the meager growth of the US economy, and deceleration in China were not good omens for what would occur further ahead and caused uncertainty among investors on a global level. 22 However, as the months went by, the doubts haunting markets started to dissipate, and as a result of: the creation and expansion of rescue funds for European countries at risk, the transitory agreement reached at the last moment in the US Congress to avoid the fiscal cliff, and the diversification of the Chinese economy, the year was ended with limited volatility and a promising scenario for the beginning of Together with the reelection of President Barack Obama in the United Sates, this economic year was marked by the high liquidity still being injected by the Federal Reserve. This expansive monetary policy will continue in place until substantial changes are observed in the labor market and inflation projections do not exceed 2.5 percent over a period of one or two years. Furthermore, at the beginning of the year, all attention within the Eurozone was focused on Greece and its potential exit from the euro, but after the financial assistance package received by the Hellenic country, the focus of attention moved towards other economies facing problems. Unemployment rates and excessive public debt now started to become factors of concern in Spain, France, Italy, and Portugal. In contrast, emerging countries were a surprise in that they became a support and shelter for the world economy. The new growth drive in China brought about an increase in the demand for raw materials, directly and positively impacting on the majority of Latin American economies.
23 MACROECONOMIC PERFORMANCE Chile was outstanding in terms of stability despite the fluctuations faced by the global economy. The GDP growth rate attained around 5.5 percent, the labor market continued to show great dynamism with unemployment levels at 6.2 percent, close to its potential, and annual inflation at 1.5 percent reaffirmed the good times facing the domestic economy. The above was recognized not only locally but also on an international level: the fourth quarter, our country was able to obtain financing in US dollars at a historic rate of 2.33 percent at ten years, and some months later, Standard & Poor s improved Chile s long-term debt rating in foreign currency from A+ to AA-. In spite of these good macroeconomic results, the Santiago Stock Exchange index (IPSA) showed low return, with only 3 percent in Chilean pesos. 23 Finally, the exchange rate was a significant factor during the year. The Chilean peso parity appreciated by almost 8 percent against the US dollar, recording an average below the barrier of CLP$500 and closing even below CLP$480 in December. Concerning the value of commodities that are relevant for Chile, the average copper price was close to US$3.6 per pound. For its part, oil ended the year below US$95 per barrel, mainly affected by a global demand decrease.
24 MACROECONOMIC PERFORMANCE INVESTMENT PORTFOLIO As of December 31, 2012, Compañía de Seguros CorpVida S.A. s investment portfolio amounted to approximately UF 84,185,930 (equivalent to US$4 billion). Investment Portfolio as of December 31, 2012: 4,61% Others (SIA and others) 24 8,95% Foreign Assets 2,57% Mortgage Loan Notes 14,18% Real Estate 1,89% Government Bonds 23,99% Bank Bonds 2,82% Shares 3,22% Owner s Equity Invested in Fixed Assets 30,56% Corporate Bonds 9,43% Mortgage Bonds INVESTMENT PORTFOLIO Government Bonds 6,84% 5,76% 6,86% 3,55% 1,89% Bank Bonds 11,88% 15,92% 15,60% 18,78% 23,99% Mortgage Bonds 19,66% 16,41% 12,01% 9,43% 7,22% Corporate Bonds 23,44% 29,00% 25,23% 28,46% 30,57% Owner s Equity Invested in Fixed Assets 3,18% 4,15% 5,29% 4,25% 3,22% Shares 2,72% 5,61% 5,11% 3,56% 2,82% Real Estate 15,61% 10,40% 16,27% 15,74% 14,18% Mortgage Loan Notes 5,74% 5,20% 4,03% 3,21% 2,57% Foreign Assets 8,45% 5,31% 4,90% 8,73% 8,95% Others (SIA and others) 2,47% 2,24% 4,70 4,30% 4,61% Total 100% 100% 100% 100% 100%
25 MACROECONOMIC PERFORMANCE During the year under review, the Life Annuity industry expanded by more than 20 percent. As a result of this explosive sales growth, the search for new and diverse investment opportunities became one of the main challenges in The domestic market was fairly restricted in terms of new issues which, added to low returns, shifted the investment focus to international markets. The portfolio was significantly increased in this type of asset. The year 2012 was generally highly volatile for global stock markets, for which reason exposure from stocks was limited and quite conservative so as not to assume excessive risks within an environment that was highly unpredictable. adequate asset and liability gaps were also maintained. As regards real estate investments, these were focused on assets for lease, with commercial properties being the main objective. In particular, 17 Strip Centers were purchased from Inmobiliaria Avantuen S.A. for more than UF 1 million. Additionally, five plots of land were sold in the city of Antofagasta for the Valle del Mar Project, enabling the generation of a profit reaching UF 334,900 and significantly contributing to CorpVida s result. Emerging country currencies appreciated throughout the year, which factor was positively exploited in order to obtain additional returns through active hedging management. Creditworthiness indicators continued to improve in an exceptional and ongoing manner. The Company s Asset Adequacy Ratio (AAR) remained within the desired levels. and % 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Others (SIA and others) Foreign Assets Mortgage Loan Notes Real Estate Shares Owner s Equity Invested in Fixed Assets Corporate Bonds Mortgage Bonds Bank Bonds Government Bonds
26 INNOVATION When you act with PASSION, you are constantly focused on improving.
27 ACTIVITIES AND BUSINESS 4
28 LIFE ANNUITIES The year 2012 was an excellent year for the Life Annuity market, with revenue reaching UF 71,884,000, representing a 21.9 percent increase with respect to The average premium in 2012 was UF 2,474, a figure very similar to that for the previous year. CorpVida attained a 26.9 percent growth in 2012, exceeding market growth, with revenue of UF 9,893,000, and obtained the second place in the corporate ranking, a 13.8 percent market share, and an average premium of UF 2, During the year, CorpVida managed to strengthen the Pension Fund Consultant channel, reaching the projected staff and a productivity exceeding projections, equivalent to 0.95 monthly average deals closed by consultant, thereby demonstrating that the management model used in this channel was appropriate for the achievement of the proposed goals. Additionally, work with this channel was carried out with special emphasis on market opening and development. Management in relation to the Pension Fund Assistant channel was mainly focused on fidelization, with 60 percent of Assistants having access to the Pension Fund Amount Enquiry and Offer System (SCOMP) in 2012 closing at least one insurance contract with CorpVida during the year. This also considered a price strategy consistent with the needs of this channel. Expectations for the coming year are for the Life Annuity market to drop by approximately 5 percent with respect to 2012, with a market close to UF 67,000,000 being estimated. The challenges for CorpVida in 2013 are to consolidate its leadership in the Life Annuity market and attain a 14 percent market share. ACTIVITIES AND BUSINESS
29 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. 29 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
30 attained maintaining premium productivity and increasing policy productivity. From a qualitative point of view, 2012 marked the beginning of a strategy oriented to training excellent sales executives with the aim of differentiating us from our competitors and providing customers with the best consulting service in matters of protection and financial planning. Along this line, the executive training study plan was updated, and a certification process covering all Individual Life Insurance sales channels was carried out for the first time in CorpVida s history. Together with commercial and financial challenges, work will continue during 2013 on developing a competitive edge in this business line, which will be closely linked to the focus on the customer, as the fundamental pillar in CorpVida s commercial strategy for this year. 30 ACTIVITIES AND BUSINESS
31 MASS DELIVERY INSURANCES Total revenue from Mass Delivery Insurances in 2012 was CLP$21.1 billion, with premium from the CorpBanca and Banco Condell title insurance business being outstanding, with CLP$17.5 billion. Together with CorpBanca and Banco Condell, the Company had to face big growth challenges arising from insurances associated with bank credit transactions. During 2012, the Bancaseguros (bank insurance) commercial strategies were redesigned, and modifications to products and incentive campaigns were implemented. A new impetus was given to sales results, and the expectations are for this to continue during In addition, a new strategic alliance was created with the Nuestros Parques Cemetery Company, with expectations being to achieve consolidation of this business during the coming year. Expectations for 2013 are to continue with the development of an interesting supply of mass delivery insurances marketed mainly through the companies that are part of the Group, taking advantage of the excellent profitability results that may be attained by both parties. 31 ACTIVITIES AND BUSINESS