Some highlights from MAPFRE’s latest results statement;
• Group revenue remains stable at more than 7.3 billion euros while premiums total 5.9 billion euros (-3.3 percent), affected by currency depreciation. At constant exchange rates, premiums would have grown by 3.2 percent
• Business progresses positively in Spain, up 2.9 percent, and profits are up 5.5 percent, with the country remaining the biggest contributor to earnings. All LATAM countries closed the quarter in profit. MAPFRE RE performed well, producing earnings of more than 32 million euros
• COVID-19 claim costs amount to 109 million euros, of which 77 percent are from LATAM. The net impact of claims relating to Storm Filomena comes to almost 20 million euros, split between MAPFRE RE and MAPFRE in Spain
• The Solvency II ratio rose to 193 percent as of December
• The company is bringing forward the payment of the final dividend of 0.075 euros per share by
one month, to May 24
MAPFRE’s attributable earnings in the first quarter of the year were 173 million euros, representing growth of 36.7 percent compared with the same period in the previous year, driven by improved business in Spain, LATAM South and North America, and an upturn in the reinsurance business.
This increase is particularly significant given that it comes after dealing with COVID-related claims of more than 109 million euros for the quarter, including more than 34 million euros in Health and 48 million in LifeProtection, almost completely concentrated in Latin America. The fall in loss experience for Automobile and General P&C continued due to lockdown measures and the slowdown in economic activity.
The Group’s total revenue between January and March was 7.3 billion euros (-0.4 percent), while premiums amounted to 5.9 billion euros, 3.3 percent less than the same period in the previous year. However, at constant exchange rates, premiums would have risen by 3.2 percent.
The combined ratio improved by almost 6 percentage points compared to the same quarter in the previous year (pre-COVID), to stand at 94.3 percent, with a notable reduction in the Automobile line and a lack of significant catastrophic claims (the last major earthquake in Puerto Rico was recorded in 2020). The Group’s equity at the close of March 2021 stood at 8.3 billion euros and total assets amounted to 69.97 billion euros.
MAPFRE’s investments totalled 44.59 billion euros at the end of March. Of these investments, 51.3 percent are in sovereign fixed income, 18.2 percent are in corporate fixed income, 6.6 percent are in equities, with the remainder being cash and other investments. The provisional Solvency II ratio stood at 192.9 percent in December of 2020, reflecting the strength and resilience of the balance sheet and active investment management. The final data for fiscal yearend 2020 will be published in May. The solvency ratio was strengthened by extending the
application of the internal longevity risk model used in Spain to the entire Group, as was recently authorized by the supervisor.