MAPFRE has revealed that it expects to assume losses of between €130 million – €140 million (USD 145mn – USD 156mn) as a result of the impacts of typhoons Faxai and Hagibis, and to a lesser amount, the damages caused by the recent disturbances in Chile.
The insurer and reinsurer has said that the impact of up to €140 million will be assumed in its attributable earnings for the 2019 financial year, and that it will mostly be felt within its reinsurance unit.
At the same time, MAPFRE says that these events do not have a significant impact on its solvency and capital strength position, and as a result, the firm’s Board of Directors has agreed to propose to maintain the 2019 dividend at an amount equivalent to that of the 2018 fiscal year.
MAPFRE states that the loss amount has been calculated using estimates made by the firm on the basis of its communications with ceding insurers. Adding that “this extraordinary increase in costs” will result in a revision of its current strategic plan 2019-2021.
MAPFRE is the latest re/insurer to announce its expected hit from the two typhoons, which, combined are expected to drive an insurance and reinsurance industry loss of more than $20 billion.
