MAPFRE RE, the reinsurance arm of Madrid-headquartered insurer MAPFRE, has reported that premiums, which include the reinsurance and global risks businesses, increased by 5.5%, reaching over €4.3 billion, in the first half of 2024.
Of the €4.3 billion in premiums, the company noted that €3.3 billion came from the reinsurance business, while over €1 billion came from the firm’s global risks business.
The reinsurers combined ratio also reached 95.1%, which was supported by the recovery of tariffs, especially catastrophic covers.
MAPFRE RE also noted that the most relevant event for the firm in H124 was the flooding in the Rio Grande do Sul region in Brazil, which had a €41-million net impact on the Group’s attributable result.
The net result reached €139.5 million, climbing 15.4% from the previous year’s €120.9 million, which included €119 million from its reinsurance business and €20.5 million from the global risks business.
Meanwhile, the reinsurers parent, MAPFRE reported that total premiums grew 5.5% in H124, surpassing €15.1 billion, and improving from last year’s €14.3 billion.
According to the organisation, the increase in premiums reflects strong growth in business lines with a greater contribution to the result, especially around General P&C, Life Protection and Reinsurance.
At the same time, the company posted a 4.1% increase in revenue, totaling €17.7 billion, compared to €17.0 billion from last year.
Additionally, MAPFRE posted a net result of €461.6 million, which is up 46% from the previous year. The company explained that this is based on a number of developments during the first half of the year. Including: the relevant improvement in Non-Life technical profitability from both technical measures in underwriting and tariff adjustments, as well as the growing contribution of financial income which, for the Non-Life business, reaches €401 million (+11.6%) in H124.
MAPFRE’s Non-Life combined ratio also improved by 1.3 percentage points, standing at 95.7%.
Moreover, premiums in IBERIA reached over €5.3 billion in the first half of 2024, with Spain standing out with nearly €5.1 billion, while premiums in Portugal reached €243 million (+84%) driven by the strong growth in Life Savings.
MAPFRE also highlighted how business in Latin America (LatAm) shows strong growth and continues being the group’s growth engine and largest contributor to earnings with €203 million. Premiums in LatAm also climbed by 5.7% from last year, reaching nearly €5.3 billion.
Moving over towards North America, MAPFRE noted that premiums reached nearly €1.4 billion (+4.7%), of which the United States contributed close to €1.2 billion (+5.5%).
The NA region also posted a net result of €40.8 million, compared to losses of €17.7 million from the previous year, representing an improvement of nearly €60 million.
Antonio Huertas, Chairman and CEO of MAPFRE, commented: “The second quarter confirms the trend we are aiming for with the new Strategic Plan. The adjusted ROE is over 11%, we are growing profitably and solidly in the majority of countries and in all business units. We continue to improve the company’s combined ratio, adapting the Auto line in the markets where there are still complications.”
