MAPFRE RE, the reinsurance arm of Madrid-headquartered insurer MAPFRE, has reported that premiums, which include the reinsurance and large risks business, grew 11.5% in H1 of 2023 surpassing €4.1 billion.
The reinsurer also reported €140 million in losses related to the earthquake in Turkey, which has been the main relevant Nat Cat event of the first half of the year; with a net impact for the group of €99 million.
The net result reached €121 million, and the combined ratio saw an improvement in the quarter, reaching 95.8%, compared to the 96.4% reported in the same period last year.
The reinsurance business grew 11.8%, while the global risks business advanced 10.8%, MAPFRE RE noted.
The financial result also grew, with a €61.2 million gross contribution to the Non-Life result (€34.1 million in 2022). In 2023, net gains of €7.3 million were realised (-€1.1 million in 2022).
Meanwhile, the reinsurer’s parent, MAPFRE, reported premiums grew 14.7% in H1, to €14.3 billion, compared to the €14.5 billion reported in the same period last year.
According to insurer, the increase in premiums reflects a general improvement in business, with an 11.2% increase in Non-Life and a 29.4% increase in Life, mainly due to performance in Spain and Brazil.
These premiums were also driven by the renewal of a two-year industrial risk program in Mexico, recording €307 million corresponding to the first year.
Group revenue increased by 15% in the period, to €17.0 billion, reflecting both a relevant increase in business volume as well as an improvement in financial income, MAPFRE stated.
Non-Life premiums are up over €1.1 billion in the first half, with 14.8% growth in General P&C, 10.7% growth in Accident & Health and 4.4% in Auto. The combined ratio stands at 97.1%, and the volatility and dispersion from previous quarters marked by the economic scenario remain.
With a combined ratio of 85.9%, general P&C has compensated the high loss experience that persists in the Auto business, where the combined ratio has reached 106.2% but is slightly better compared to March this year.
Accident & Health showed improvement in the combined ratio compared to the first half of the previous year, at 100.4%.
The Life Protection combined ratio remains at an excellent level (82.9%). All these factors led to a 16.4% improvement in the Life technical-financial result compared to the previous year, MAPFRE added.
The net result reached €317 million (-6%) due to the impact of the earthquake in Turkey, with an estimated net cost of €104 million, as well as the complex Auto environment, the insurer also noted.
Business in LATAM consolidates the strong trends of recent quarters with net results soaring to €193 million, the largest contributor to group earnings.
IBERIA grew above the market, both in Non-Life and Life, with 31% premium growth, supported by the Life Savings business, and continues to be the region with the highest volume in the group.
“The strength that our great diversification gives us is compensating all the difficulties that the Auto line continues to face from inflation. In IBERIA, premiums are growing over 20%, while business in LATAM is also showing strong growth, where anti-inflation measures were adopted earlier and are starting to be seen in the result. MAPFRE RE has contributed significantly to the result,” said Antonio Huertas, Chairman of MAPFRE.
