Latest earnings update from MAPFRE has just landed in the Inbox, here are some highlights;
Earnings would have stood at 703 million euros (+6.8 percent) discounting the extraordinary receipt from Bankia and the cost of operational
restructuring.
• Group revenues are up by 7.2 percent, exceeding 27.3 billion euros, and premiums grow 8.2 percent to 22.2 billion euros.
• Diversification pays off: all the Group’s regional areas and business units contribute positively to earnings.
• Iberia, Brazil, North America and RE drive the growth in earnings results, while LATAM leads the increase in premiums.
• The impact of COVID-related claims amounts to 460 million euros in 2021,
79 percent of which are in LATAM.
• The Group’s ROE increases by almost 3 percentage points, reaching 9 percent at the end of 2021.
• The dividend returns to pre-pandemic levels, with 14.5 cents per share charged against the results for the 2021 financial year.
MAPFRE’s attributable earnings for 2021 amounted to 765 million euros, showing an increase of 45.3 percent on the previous year, thanks to solid business results in the Iberia and North America regional areas, where earnings growth exceeded 15 percent in both cases, and the good performance of the reinsurance business and the extraordinary profit (167 million euros) generated by the termination of the alliance with
Bankia.
Part of this gain, 104 million euros, has been assigned to shoring up the company’s future profitability, adapting and improving the operational efficiency of its businesses in Spain and Italy, as well as optimizing the Group’s financial structure.
REVENUE AND SOLVENCY
The Group’s revenues increased by 7.2 percent in 2021, exceeding 27.3 billion euros, while premiums reached 22.2 billion euros, up 8.2 percent. This increase in premiums comes on the back of a favorable evolution of the business in the Iberia regional area, in Latin America (where practically all countries saw growth) and in the reinsurance business.
The Solvency II ratio as at the end of September 2021 stood at 193.8 percent, with 87 percent of capital being the highest quality (Tier 1). This ratio reflects a prudent approach to managing the balance sheet and active investment management, as well as the strength and resilience of MAPFRE’s balance sheet.
Find out more at the MAPFRE site here.
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