Spanish insurer MAPFRE is to implement a restructuring of the way it handles its Global Risks large client insurance business and its reinsurance business, including an integration of its Cologne Global Risks office into its branch in Munich, from January 2019.
Under plans laid out today, MAPFRE Global Risks will underwrite the large risks business on behalf of the group and will focus its activities on operations where MAPFRE assumes the business lead, with responsibility for technical aspects, handling claims and provision of services.
The issuing process will be performed by the MAPFRE companies in the various countries, and reinsured by MAPFRE Re.
Additionally, MAPFRE Global Risks will transfer its reinsurance business to MAPFRE Re, and its insurance business to MAPFRE Spain. Likewise, MAPFRE Re will assume the operations subscribed by MAPFRE Global Risks in countries across the European Union.
Branches in the UK, France and Italy will be integrated into the structure of MAPFRE Re, while the Cologne branch will cease operations on October 1.
It is hoped that this will allow for greater optimisation of the group’s capital and resources, increasing efficiency through economies of scale.
“All this will give MAPFRE greater capacity available for the large risks insurance business, and will contribute to offering a better service to MAPFRE’s global clients,” said Chairman and Chief Executive Officer, Antonio Huertas.
MAPFRE Re will be the vehicle for the transfer and administration of global risks, consolidating its role as the sole reinsurer in the group.
Subsequently, MAPFRE Re is said to be strengthening its role as the sole reinsurer for the risk types managed by MAPFRE Global Risks, leveraging its larger scale and increased portfolio diversification.
“This also boosts its service capacity for its clients and broadens its range of solutions to lines and businesses in which it did not operate up until now.”
Last year MAPFRE made the decision to reorganise its global business structure in response to catastrophe losses from third-quarter hurricanes in the U.S. and Caribbean, and the Mexico earthquakes.
