MAPFRE RE, the reinsurance division of Madrid-headquartered insurer MAPFRE, has posted a net income of €189.5 million for the third quarter of 2023, more than double the previous year’s €93.5 million, representing a 103% increase.
At the same time, MAPFRE RE premiums, which include both the Reinsurance and Global Risks business, grew 9.3%, reaching nearly €6.1 billion. The firm noted that the Reinsurance business grew 8.6%, while the Global Risks business grew by 11.3%.
Combined ratio improved significantly in Q3 reaching 95%, compared to last year’s 97.5%. MAPFRE RE noted that the improvement was supported by adequate pricing in the reinsurance market.
Meanwhile, the firm’s financial result also grew, with a €97 million gross contribution to the Non-Life result, compared to 2022’s €52.9 million.
MAPFRE RE stated that the most relevant event in the year has been the earthquake in Turkey, with an estimated gross cost of €142 million, and a €100 million impact on the Group net result.
Moreover, there have also been other relevant events, including the storms in Europe, which have been offset by the positive development of the hurricane season so far.
Meanwhile, the reinsurer’s parent, MAPFRE, posted a 3.6% decrease in net profit for Q3, coming in at €470.6 million, compared to last year’s €488.4 million.
However, total premiums rose 11% to €20.68 billion.
MAPFRE Q3 results also benefited from a €46.5 million euro positive net impact in relation to arbitration over the termination of an alliance with Spanish bank Bankia, which was taken over by rival Caixabank CABK.MC.
The company’s business in Latin America, led by Brazil, was also very strong during the period as its net profit rose 50.5% to €283.5 million.
Further, in Brazil, premiums reached nearly €4.0 billion (+7.3%), despite a slight depreciation of the Brazilian real (-0.7%). MAPFRE noted that this improvement in written premiums is due above all to the positive development of the Agro Insurance and Life Protection, which grew in euros 9.9% and 8.8%, respectively.
“Our business continues to show robustness, both in revenue and premium growth as well as in the result, based on a high level of diversification and ability to adapt to the context. MAPFRE is overcoming the difficulties presented by inflation, thanks to continuous improvement based on our technical management”, said Antonio Huertas, Chairman and CEO of MAPFRE.
