Mapfre closed the first nine months of 2023 with net income of 470.6 million euros, which represents a decrease of 3.6% compared to the same period last year, as a result of an exceptional impact due to the deterioration of the transportation business. , as reported this Friday by the insurer.
In particular, the Spanish insurance company recorded a negative impact of 75 million euros due to the impairment of goodwill in its insurance operations in the United States. The company indicated that this effect is based on the current context of rising interest rates and the unfavorable environment of the Auto industry in the face of inflation. At the end of the year this number may vary depending on business types and plans.
If this effect of 75 million is excluded, the net result is 545.6 million euros, 11.7% more than in the first nine months of 2023. This figure also includes a remarkable positive impact of 46,5 million euros as a result of the arbitration due to the breakdown of the alliance with Bankia.
“Our business continues to show stability, in the growth of income and premiums and in results, based on high diversification and the ability to adapt to the environment. Mapfre has overcome the difficulties represented by inflation, thanks to continuous improvement based on our technical management,” stated the president of the insurer, Antonio Huertas.
By geographical area, Latin America became the region that contributed the most to income. This increase was largely due to Brazil, which improved the net result by 95.1%. In this way, the region as a whole obtained an income of 283.5 million, compared to 245.5 million in Iberia (-17.9% compared to a year before).
In the rest of Europe, the Middle East, and Africa, Mapfre increased its losses by 80.1%, up to 30.1 million euros, while in the United States, it observed losses of 18.8 million, compared to a profit of 11.2 million in the first which is nine. month of 2022.
Mapfre doubled its profit, up to 189.5 million euros, even though in the first quarter it recorded an impact of 100 million due to the earthquake in Turkey, and Mawdy reduced its income by 68.2%, up to 2.4 million. Revenues experienced an increase compared to the cumulative period from January to September 2022 of 10.8%, reaching 24,595.8 million euros. Premiums increased by 10.9%, to 20,679.4 million euros.
Growth by parts
By segment, the General Insurance line recorded premiums of 6,686 million, a 12.5%increase, while the Auto line increased 3.9%, up to 4,625 million. Life Risk increased by 9%, up to 1,995 million, while Life Savings reached 1,951 million, 40.1% more. The growth of Health and Accident was 10.2%, up to 1,698 million euros.
By geographical area, the growth of Iberia stands out, which is the region that grows the most in premiums, with an increase of 17%, up to 6,744 million euros. Behind the growth is Latam, with an increase of 11.2%, up to 7,615.1 million euros, while North America amounted to 2,064.1 million, 4.1% more. In EMEA, a drop of 1.9% was observed, to 1,008.2 million.
Premium billing in the reinsurance business increased by 9.3%, reaching 6,073.2 million euros, while Mawdy stood at 166.1 million, 2% more.
Combined ratio and dividend
The combined Non-Life ratio of the group decreased year-on-year by 1.7 percentage points, to 96.8%, which is entirely due to the reduction of the claims ratio. For its part, the combined Life Risk ratio increased by half a point, to 82.8%. Compared to June 2023, the combined Non-Life ratio increased by three-tenths, and that of Life Risk, one.
Cars remain the branch with the worst performance, with a combined ratio of 105.9%, three-tenths more than in September 2022, but at the same time, three-tenths less than three months ago. The General Insurance branch stood at 87.1%, 2.8 points lower year-on-year, while Health and Accident increased by 1.8 points, to 98%. On the other hand, the return on equity (RoE) of Mapfre is 8.2%, unchanged compared to the end of September 2022. If the negative impact of the United States is not taken into account, the return would be 9. 1%, nine-tenths more.
Mapfre’s investment portfolio increased by 2.3% compared to the end of the year, reaching 42,323.3 million euros. An increase of 7.9% in sovereign fixed income and 9.6% in corporate fixed income showed. On the other hand, real estate fell by 9% and investments in equities and investment funds fell by 18.8%.
Mapfre also reported this Friday that the board of directors has decided to distribute an interim dividend against the results of the 2023 fiscal year of 0.06 euros gross per share. The shares will be listed without the right to receive a dividend from November 28, while the registration date is November 29 and the payment will be made on November 30.
