Spanish re/insurer MAPFRE has improved its Solvency II ratio in the second quarter of 2020, despite significant challenges associated with the COVID-19 pandemic.
The company posted a ratio of 183.8% in Q2, representing a 6.6 percentage point increase on the 177.2% it recorded in Q1.
It also compares with the Solvency II ratio of 186.8% that MAPFRE posted for the fourth quarter of 2019.
MAPFRE attributed the improvement to a significant increase in own funds, which increased by almost €500 million in the second quarter.
The result was also supported by the active management of its investment portfolio in a more favourable environment, it said.
“The robustness of the Solvency ratio reflects, once again, the great strength and resilience of the company’s balance sheet,” explained Fernando Mata, CFO and member of the Board.
Despite the impact of the COVID crisis, MAPFRE remains within the tolerance range established by its Board, which sets the lower threshold of the solvency margin at 175%.
