MAPFRE has disclosed its financial performance for the year 2023, showcasing growth in its insurance and reinsurance segments.
The company reported that MAPFRE RE premiums, encompassing reinsurance and global risks operations, escalated by 8.8%, achieving close to €7.9 billion. Notably, the reinsurance sector saw a 7.8% increase, whereas the global risks division expanded by 12.2%.
A significant improvement was observed in its combined ratio, which narrowed to 95.6%, marking a 1.2 percentage point decrease. This enhancement is attributed to the reinsurance market’s recovery, particularly in relation to catastrophic coverages.
The financial year was marked by two major catastrophic events: an earthquake in Turkey and Hurricane Otis in Mexico, which collectively imposed a financial burden of €153 million on the company. However, this was balanced by a lack of significant events in the Atlantic, coupled with a low frequency of other events like European storms.
Financially, MAPFRE RE saw a rise in its gross contribution to the non-life result, which amounted to €128.2 million, up from €79.5 million in 2022. Net realized gains also saw an increase, contributing €12.3 million to the results compared to €2.4 million the previous year. The net result surged by 70.6%, reaching €244.6 million.
Excluding a €75 million goodwill write-down in the United States, the net result for MAPFRE would have been €767 million, marking a 19.4% increase.
The company achieved record-breaking premium volume of nearly €27 billion, up 9.7%, with revenue rising by 9.2% to over €32.2 billion. The IBERIA unit recorded the highest premium growth at 15.8%, while the LATAM region emerged as the primary earnings contributor with net results increasing by 24% to €373 million.
The return on equity (ROE) stood at 9.9%, excluding the goodwill write-down in the United States (9% with the write-down included). Shareholders’ equity experienced growth of over 10%.
Furthermore, the board of directors plans to propose a final dividend of nine cents per share for 2023 at the AGM, which is 5.9% higher than the previous year.
Under the newly adopted IFRS 17&9 international accounting standards, MAPFRE’s net income rose by 20.2% to €677 million, with ROE at 8.3% and shareholders’ equity reaching €8.5 billion.
“In 2023, we hit records in terms of premiums, and this strong growth is already translating into profitability, with the adjusted ROE close to 10%. MAPFRE is overcoming the challenges of the current context and continues advancing its business transformation,” MAPFRE chairman and CEO Antonio Huertas (pictured above) said.
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