MAPFRE has reported a net result of €744 million for the first nine months of 2024, marking a 36% increase year-over-year.
After a €90 million goodwill write down in Verti Germany, attributable earnings stand at €654 million, reflecting a 39% rise. The company’s growth is primarily due to improved technical performance across all regions and business lines, which has supported an interim dividend increase to 6.5 cents per share, up 8% from last year.
Adjusted return on equity (ROE) rose to 12%, with shareholders’ equity increasing 4.5% to over €8.4 billion.
Antonio Huertas (pictured above), MAPFRE chairman and CEO, noted that the results reflect the company’s strategic plan, with the dividend increase underscoring confidence in growth and the company’s commitment to shareholders.
“Additionally, we have strengthened our balance sheet even more in an exercise of prudence, maintaining the growth in our capital base,” Huertas said.
Premiums grew 4.6%, driven by non-life tariff adjustments and solid performance in the Life segment. Accident & health premiums rose by 6.4%, and Auto premiums increased by 4.4%. General property & casualty (P&C) premiums rose 1.1%, slower due to the agro business in Brazil and depreciation of the Brazilian real.
In life savings, premiums rose 8.2%, mainly from IBERIA and LATAM, while life protection premiums increased 6.8%, driven by growth in Mexico and Spain. At constant exchange rates, total premiums grew 6.1%, with non-life premiums up 5.7% and Life premiums increasing 7.3%. Growth in IBERIA, LATAM, and reinsurance showed strong regional performance.
Several factors contributed to the 39% rise in net result: non-life technical profitability improved, aided by underwriting and tariff adjustments; non-life financial results were significant, reaching €576 million due to portfolio yields; and the life business saw notable contributions from LATAM and IBERIA, with the Life Protection combined ratio steady at 85.4%, though acquisition expenses in Brazil increased.
MAPFRE also recorded a €90 million write down of goodwill in Verti Germany, a response to current Auto market conditions in Germany, with a potential update on this impact by year-end depending on interest rates and business plans. Additionally, a €75 million goodwill write down was recorded in the United States in 2023.
MAPFRE recognised €35 million in extraordinary income from tax adjustments, primarily due to the declaration of partial unconstitutionality of Royal Decree-Law 3/2016, following €46.5 million in extraordinary income in 2023 from the end of the Bankia alliance.
The non-life combined ratio improved by two percentage points to 94.8%, bolstered by tariff adjustments and fewer weather-related catastrophes compared to 2023, which saw over €100 million in losses from the Turkey earthquake.
General P&C improved to 81.1%, with significant progress in IBERIA, Brazil, and North America. The Auto combined ratio declined by 1.7 percentage points to 104.2%, with notable reductions in North America, Brazil, and LATAM, though recovery in IBERIA remains gradual. The accident & health combined ratio held steady at 99.8%.
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Shareholders’ equity rose by 4.5% to over €8.4 billion, supported by operational contributions. Positive net unrealised gains of €194 million offset €193 million in negative currency conversion impacts.
MAPFRE RE, its reinsurance arm, reported a solid net result of €207 million for Q3, up 9.3%. Total premiums reached nearly €6.3 billion, with reinsurance accounting for over €4.8 billion, an increase of 6.2%, and global risks contributing €1.4 billion.
The combined ratio for MAPFRE RE held stable at 95.5%, with the third quarter affected by storms in Europe, though no other major catastrophic events occurred. The company noted strengthened reserves in response to secondary perils and the recurrence of catastrophic events.
Financial results were also positive for MAPFRE RE, though net financial losses totalled €0.5 million, following €8.4 million in gains in 2023.
MAPFRE Group’s Solvency II ratio was 196.6% as of June 2024, down slightly from 199.6% at year-end 2023 but within the company’s target range.
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