Annual report 2009 - Santander

135Continental Europe, which contributed 48% of the total, wasaffected by both of these factors, mainly in Spain and Portugal.Spain’s contribution (excluding SCF business) was EUR 401million (-29%) and reflects to a greater extent the impact ofslower business and the change of mix in savings insuranceproducts (-34%). Of note were the rise in insured products(“rentas” and “planes de ahorro”). In protection insurance, theslower pace of lending reduced total sales as this could not beoffset by non-credit linked insurance sales.Of note in Portugal was the growth in revenues fromprotection insurance and the lower contribution of savingsproducts. Their total contribution was EUR 133 million (-10%).Santander Consumer Finance, on the other hand, maintained astrong pace in insurance sales, particularly in Germany due tothe government’s scrappage scheme in the car sector duringthe first half of the year and the incorporation of new units. Itstotal contribution was 9% higher at EUR 556 million.The UK’s total contribution was EUR 222 million, 46% more insterling than in 2008, due to the incorporation of newbanking networks and the new business of cards. These offsetthe decline in payment protection insurance (PPI), due tochanges in the UK regulatory environment and the fall in newmortgages.Latin America’s contribution increased 26% to EUR 907million excluding the exchange-rate impact and alreadyaccounts for 40% of the area’s total. The greater efficiency inselling via bank branch networks and other channels such astelemarketing, coupled with the development of simple andtransparent products not linked to lending, pushed up theresults of the main countries. Of note was Brazil (+36% inreales), spurred by its business plan and the new businessesacquired at the beginning of 2009.The incorporation of Sovereign contributed EUR 31 million(fee income from the distribution of savings insurance).Priorities in 2010The emphasis in 2010 is on:• Strengthening insurance savings business and non-creditlinked insurance.• Stepping up penetration of the customer bases anddiversification, while controlling risks.• Exploring new business opportunities and new saleschannels.• Further enhancement of the level of quality and customerservice.Asset Management and Insurance. Income statementMillion eurosGross Net operating Attributableincome income profit to the Group2009 Var (%) 2009 Var (%) 2009 Var (%)Mutual funds 247 (34.0) 108 (47.6) 42 (70.7)Pension funds 28 (12.8) 19 (14.4) 12 (21.4)Insurance 729 11.8 571 16.6 350 12.2Total Asset Management and Insurance 1,004 (5.1) 697 (2.8) 404 (14.2)Economic and Financial ReviewAnnual Report 2009