Reinsurance News

MAPFRE’s earnings rise by more than 15% in 2019

12th February 2020 - Author: Luke Gallin

Insurer and reinsurer MAPFRE’s fiscal year 2019 financial results reveal a solid year for the company with earnings up by over 15% to €609 million, while premiums grew by more than 2% to €23.04 billion.

MAPFREAs well as earnings growth, MAPFRE’s revenues increased by more than 7% in 2019 to €28.5 billion.

Within its insurance segments, which is its core business, net earnings increased by almost 18% to more than €806 million, while MAPFRE’s reinsurance unit produced net earnings of €77 million, despite significant claims from recent catastrophe events.

This includes costs of €107 million from the impacts of typhoons Faxai and Hagibis in Japan, €24 million of losses from the Chile riots, and €17 million of losses from heavy rain and storms in parts of Spain, among other events.

As a result of the financial impact of the typhoons and the riots in Chile, MAPFRE’s reinsurance unit saw its earnings fall by 48%, although the segment did remain profitable in 2019.

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Within reinsurance, MAPFRE recorded premium growth of 19.4% in 2019 when compared with the previous year, to €4.52 billion. This, combined with insurance unit premium growth of 3% to €19.3 billion, saw the re/insurer’s overall premiums jump by 2.2% to more than €23 billion.

MAPFRE attributes the solid expansion to the performance of its operation in Spain, in the LatAm North regional area, and also in its reinsurance division.

For 2019, MAPFRE has announced an unchanged year-on-year combined ratio of 97.6%, which it says is a reflection of improvement in the combined ratio in Brazil, LatAm North and the U.S., driven by actions taken within its profitable growth framework.

Investments across the group also increased in 2019 when compared with the previous year, by 8.6% to €53.52 billion.

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