Insurance giant MAPFRE has announced its full-year results for 2022.
MAPFRE’s attributable earnings in 2022 amounted to €642 million (about $689.9 million), 16.1% down from the previous year. On a comparable basis with 2021, when adjusted earnings were €703 million, 2022 earnings would have been 7% lower.
The company said its diversified business helped to achieve a sustainable result, offsetting most of the year’s negative effects: high inflation in most markets, an increase in claims levels in the auto business, and catastrophic claims – especially those resulting from the drought in South America’s Paraná river basin, which exceeded €12 million.
On the positive side, MAPFRE noted excellent performance in Latin America, “spectacular evolution” of MAPFRE RE’s results, and high growth in both property-casualty and life insurance.
“Profitability, with a ROE of 8.2%, was similar to that achieved on a like-for-like basis in 2021,” MAPFRE said.
Group revenue rose 8.3% in 2022 to €29.51 billion, while premiums grew by 10.8% to surpass €24.54 billion.
“This increase in premiums reflects a general improvement in the insurance business across nearly all regions, with significant increases in Latin America and North America, as well as in the reinsurance and large risks businesses, with almost all currencies performing favorably against the euro,” MAPFRE said.
The company’s combined ratio rose 0.6 percentage points to 98%, driven by the rise in auto claims – a consequence of high inflation and the increase in mobility following the end of COVID-19 restrictions.
MAPFRE’s attributable equity at the end of 2021 was €7.20 billion, while total assets were €59.3 billion.
The company’s investments total €41.39 billion, half of which correspond to sovereign fixed income.
Pension fund equity totaled €5.7 billion at the end of 2022, while mutual funds grew by 2.3% to €5.53 billion.
At the end of September 2022, the company’s Solvency II ratio stood at 216.8% with 84% high-quality capital (Tier 1).
“This ratio reflects a prudent approach to the balance sheet and active investment management, as well as the strong and resilient balance sheet of MAPFRE,” the company said.
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