MAPFRE Results: Premiums Up, Revenues Up. It’s All Good

MAPFRE’s premiums increased by 7.3 percent in the first half of the year to 12.51 billion euros, with the Non-Life business growing by 8.1 percent thanks to the improvement in the Automobile and General P&C insurance businesses. This is the largest half-yearly premium volume registered over the last five years, in spite of the prevailing economic context.

The Group’s revenue for the first six months of the fiscal year rose to 14.81 billion euros, representing a 5.1 percent increase on the same period of last year. Net earnings were 338 million euros (-7.3%) at the end of the first half of the year as a result of the higher loss experience coming on the back of the current high inflation scenario worldwide, as well as increased mobility following the elimination of COVID-19 restrictions.

Iberia, the region that contributes the most to Group earnings, stands out for the good performance of its General P&C insurance, which is compensating for other lines, such as Automobile, which are more affected by inflation and the loss experience. MAPFRE has taken another step toward improving its profitability and has become the largest insurer in Latin America. For its part, MAPFRE RE (reinsurance and global risk businesses) saw premium volume grow by 13.9 percent, although earnings were affected by paying out 51 million euros in claims for the drought in the Paraná basin, in central-eastern South America. Lastly, the significant restructuring that the Assistance business underwent in recent quarters has enabled it to contribute 8 million euros to Group earnings, thanks to the sale of various operations.

CLAIMS

Of note is the reduction in claims arising from COVID-19, with a cumulative impact of 73 million euros in 2022 (of which only 27 million correspond to the period from April to June). However, the return to normalcy following the removal of mobility restrictions has resulted in an increase in the loss ratio in the Automobile business line across virtually all markets.

The Solvency II ratio in March 2022 stood at 205.3 percent, with 88.1 percent high-quality capital (Tier 1). This ratio reflects MAPFRE’s strong and stable balance sheet, characterized by a prudent approach to the same and active investment management.

You can read more at the MAPFRE News site here.

About alastair walker 9284 Articles
20 years experience as a journalist and magazine editor. I'm your contact for press releases, events, news and commercial opportunities at Insurance-Edge.Net

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