As non-profit entities, mutual insurance companies that collaborate with the Spanish Social Security system do not make any profits but rather have surpluses.
The difference between these two concepts is not simply semantic. Profits may be distributed (for example via dividends) while surpluses may only be used for certain reserves.
On the other hand, mutual insurance companies are entities that collaborate with the Spanish Social Security system and, as such, are subject to general public accounting standards, a specific chart of accounts and collaboration regulations.
Articles 65 and 73 of these regulations Spanish Royal Decree 1993/1995regulate mutual insurance company reserves without leaving any room for any other type of distribution.
Due to the high surpluses we have historically had and which we continue to have, all of our reserves (mandatory and voluntary) are at 100%. The surplus from any positive economic earnings obtained for managing professional contingencies is currently deposited in a Prevention and Rehabilitation Fund at the Bank of Spain following allocations to said reserves for general Prevention and Rehabilitation aims.
These include fostering extra occupational accident and occupational disease prevention activities within companies as well as incentives for adopting measures and processes that effectively help reduce workplace accident rates in a manner that can be proven by means of the bonus-malus system.
Our good solvency rates are a significant economic guarantee for our members.