MAPFRE publishes monetary outcomes for insurance coverage, reinsurance models

MAPFRE has disclosed its monetary efficiency for the yr 2023, showcasing development in its insurance coverage and reinsurance segments.

The corporate reported that MAPFRE RE premiums, encompassing reinsurance and world dangers operations, escalated by 8.8%, reaching near €7.9 billion. Notably, the reinsurance sector noticed a 7.8% enhance, whereas the worldwide dangers division expanded by 12.2%.

A major enchancment was noticed in its mixed ratio, which narrowed to 95.6%, marking a 1.2 proportion level lower. This enhancement is attributed to the reinsurance market’s restoration, significantly in relation to catastrophic coverages.

The monetary yr was marked by two main catastrophic occasions: an earthquake in Turkey and Hurricane Otis in Mexico, which collectively imposed a monetary burden of €153 million on the corporate. Nonetheless, this was balanced by an absence of great occasions within the Atlantic, coupled with a low frequency of different occasions like European storms.

Financially, MAPFRE RE noticed an increase in its gross contribution to the non-life outcome, which amounted to €128.2 million, up from €79.5 million in 2022. Web realized positive aspects additionally noticed a rise, contributing €12.3 million to the outcomes in comparison with €2.4 million the earlier yr. The web outcome surged by 70.6%, reaching €244.6 million.

Monetary outcomes for insurance coverage unit

Excluding a €75 million goodwill write-down in the USA, the web outcome for MAPFRE would have been €767 million, marking a 19.4% enhance.

The corporate achieved record-breaking premium quantity of almost €27 billion, up 9.7%, with income rising by 9.2% to over €32.2 billion. The IBERIA unit recorded the very best premium development at 15.8%, whereas the LATAM area emerged as the first earnings contributor with internet outcomes growing by 24% to €373 million.

The return on fairness (ROE) stood at 9.9%, excluding the goodwill write-down in the USA (9% with the write-down included). Shareholders’ fairness skilled development of over 10%.

Moreover, the board of administrators plans to suggest a remaining dividend of 9 cents per share for 2023 on the AGM, which is 5.9% larger than the earlier yr.

Underneath the newly adopted IFRS 17&9 worldwide accounting requirements, MAPFRE’s internet revenue rose by 20.2% to €677 million, with ROE at 8.3% and shareholders’ fairness reaching €8.5 billion.

“In 2023, we hit information by way of premiums, and this robust development is already translating into profitability, with the adjusted ROE near 10%. MAPFRE is overcoming the challenges of the present context and continues advancing its enterprise transformation,” MAPFRE chairman and CEO Antonio Huertas (pictured above) mentioned.

What are your ideas on this story? Please be happy to share your feedback beneath.