Spanish re/insurer MAPFRE has stated that its solvency position currently reflects a ratio of 183.5% as at the end of 2020.
However, the company expects to receive approval from the Spanish supervisor for the internal model for calculating longevity risk within the Group, which would elevate the ratio above 190%.
Furthermore, the Bankia exit from the balance sheet would add an additional five percentage points to the ratio.
These new scenarios will facilitate the consolidation of the company’s solvency level at approximately 200%, progressively distancing its solvency position from the impacts on financial markets caused by COVID-19 in the first quarter of 2020.
MAPFRE’s Board of Directors has set down a tolerance range for the company’s solvency level of 175 to 225%.
Chairman and Chief Executive Officer of MAPFRE, Antonio Huertas, explained that the company’s growth objectives were to be concentrated in strategic markets such as Spain, Brazil, the United States and Mexico.
He also reiterated the financial objectives announced last Friday during the Annual General Meeting.
Additionally, he highlighted the company’s ongoing digitalisation push, noting that digital revenues grew 10.8% in 2020, while policies taken out via MAPFRE’s online channel were up 9% and that Verti’s premiums had risen 6%.
Chief Financial Officer, Fernando Mata cited the healthy balance sheet and excellent solvency position as a reason for the company’s current position.
MAPFRE RE’s CEO, Eduardo Pérez de Lema, updated the situation regarding MAPFRE’s reinsurance business, which for 2021, foresees a return to making a solid contribution to Group earnings, after 2020 was marked by the impact of COVID-19 and natural disasters.
Finally, group Chief Investment Officer, José Luis Jiménez, presented the Group’s investment policy, and commented that MAPFRE will continue with its strategy of increasingly diversifying its assets, while maintaining the prudent and long-term-oriented profile that characterises the company’s investment philosophy.