MAPFRE RE, the reinsurance arm of Madrid-headquartered insurer MAPFRE, has reported that premiums, which include the reinsurance and large risks business, grew 8% in Q1 of 2023 to over €2.0 billion.
The firm estimated that the cost for the earthquake in Turkey for MAPFRE RE amounts to €102 million, with a net impact for the group of €72 million.
The net result reached €33.4 million, and the combined ratio went up to 98.8% from 94.1% in 2022.
The reinsurance business grew 6.7%, while the global risks business advanced more than 11%, MAPFRE RE noted.
The financial result also grew, with a €21.2 million gross contribution to the Non-Life result (€9.4 million in 2022). In 2023, net gains of €4.4 million were realized (-€0.2 million in 2022).
Meanwhile, the reinsurer’s parent, MAPFRE, reported premiums grew 19% in Q1 to reach nearly €7.8 billion.
MAPFRE states the increase in premiums reflects a general improvement in business, with a 10.3% increase in Non-Life and a 59.5% increase in Life, mainly due to performance in Spain and Brazil.
Group revenue increased by 21% in Q1, to €9.1 billion, reflecting both a relevant increase in business volume as well as an improvement in financial income.
MAPFRE’s combined ratio rose 0.4 percentage points to 98.5%, affected by volatility and dispersion from previous quarters marked by the economic scenario.
The net result reached €128 million (-17%) due to the impact of the earthquake in Turkey, with an estimated net cost of €77 million, as well as the complex Auto environment, MAPFRE noted.
Business in LATAM consolidates the strong trends of recent quarters with close to €2.4 billion in premiums and a result of 94 million, the largest contributor to group earnings, the insurer stated.
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.
Improved Life result (+95%) and Non-Life financial result (+20%), in a better market context, the insurer noted.
“Once again, the high level of business diversification allows us to face challenges, like those presented by inflation in Non-Life lines, with a sustainable result, Antonio Huertas, President of MAPFRE, said.
“These results make us feel optimistic in the current context and are proof of the strength of our business model,” Huertas added.
MAPFRE stated that it will pay the final dividend against 2022 results on May 24.