Spanish insurer MAPFRE has reported a 45.3% increase in earnings for 2021, which stand at €765 million, backed by double-digit top-line growth and a significant recovery in earnings at its reinsurance unit, MAPFRE RE.
MAPFRE RE reported earnings of €152 million for the year, consisting of €118 million from reinsurance business and €34 million from global risks.
This compares with the unit’s earnings of just €2 million in 2020, when the company’s reinsurance business was severely impacted by COVID losses and costs from earthquakes in Puerto Rico.
MAPFRE RE also recorded premiums of €6.28 billion last year, with reinsurance premiums increasing 12% to €4.99 billion and global risks premiums up 2.2% to €1.28 billion.
The unit’s combined ratio was 97.1%, compared with an overall group figure of 97.5%, which continued to be affected by the increase in losses, due to the easing of mobility restrictions, and by the still-high COVID claim levels in Latin America, especially in the Life Protection and Health lines.
MAPFRE attributed its overall performance to solid business results in the Iberia and North America regional areas, where earnings growth exceeded 15% in both cases, and the good performance of the reinsurance business and the €167 million profit generated by the termination of its 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.
Last year, the group’s revenues increased by 7.2%, exceeding €27.3 billion, while premiums reached €22.2 billion , up 8.2%. During this time MAPFRE also contended with COVID-related claims totaling more than €460 million.
