MAPFRE RE, the reinsurance arm of Madrid-headquartered insurer MAPFRE, has reported that premiums, which include the reinsurance and Global Risks business, grew 8.8% in 2023, reaching nearly €7.9 billion.
The firm states that the Reinsurance business grew 7.8%, while the Global Risks business is up 12.2%.
It estimated that the two relevant catastrophic events – the earthquake in Turkey and Hurricane Otis in Mexico – had a combined impact of €153 million. Other frequency events, including the storms in Europe, were offset by the absence of events in the Atlantic.
The combined ratio improved significantly, reaching 95.6% at the end of 2023, MAPFRE RE noted.
The reinsurance arm’s financial result also grew, with a €128.2 million gross contribution to the Non-Life result compared with €79.5 million in 2022. Additionally, net realized gains had a €12.3 million impact on the result compared with €2.4 million in the prior year.
MAPFRE RE’s net result hit €244.6 million, an increase of 70.6% year-on-year.
Meanwhile, the reinsurer’s parent, MAPFRE, reported premiums grew 9.7% in 2023, reaching nearly €27 billion, the highest figure in the company’s history.
MAPFRE states the increase in premiums reflects a general improvement in business, with an 8.4% increase in Non-Life and a 14.6% increase in Life. IBERIA, LATAM and the Reinsurance business all contribute positively.
Group revenue increased by 9.2%, reaching over €32.2 billion, reflecting both a relevant increase in business volume as well as an improvement in financial income.
In General P&C business, the combined ratio stood at 100.8%, affected by various weather-related events during the year, as well as the relevant increase in the cost of cat reinsurance protection, the firm noted.
The net result reached €692 million (+7.7%) in 2023, but would have stood at €767 million (+19.4%), without the €75 million goodwill writedown in the United States, MAPFRE noted.
LATAM, where net results soared to €373 million, up 24%., is the main contributor to earnings, while IBERIA is the unit with the highest premium growth, with an increase of 15.8%.
“In 2023, we hit records in terms of premiums, and this strong growth is already translating into profitability, with the adjusted ROE close to 10%. MAPFRE is overcoming the challenges of the current context and continues advancing its business transformation,” says Antonio Huertas, Chairman and CEO of MAPFRE.
“Furthermore, we reaffirm the commitment to our shareholders with a final dividend of 9 cents, proof of the strength of the Group’s results and financial position,” Huertas added.
MAPFRE stated that the Board of Directors has agreed to propose to the Annual General Meeting a final dividend against 2023 of 9 cents per share, 5.9% higher than 2022.
