Mapfre closed the first nine months of 2023 with a net profit of 470.6 million eurosso one 3.6% decrease Compared to the same period last year, as a result of the extraordinary impact due to the deterioration of business in the United States, the insurance company reported this Friday.
Specifically, Mapfre noted: Negative impact of 75 million euros due to impairment of goodwill of insurance operations in the USA. The company stated that this impact is based on the current context of rising interest rates and the unfavorable environment of the Automotive sector vis-à-vis inflation. At the end of the year, this figure may vary depending on types and business plan. If this impact of 75 million is excluded, the net result was 545.6 million euros; This is 11.7% more than in the first nine months of 2023. Extraordinary positive impact of €46.5 million Arbitration result due to the breakdown of the alliance with Bankia.
“Our business continues to demonstrate resilience, both in terms of revenue and premium growth and in results based on high diversification and ability to adapt to the environment. Mapfre has overcome the challenges represented by inflation, Continuous improvement based on our technical management“, stated Antonio Huertas, president of the insurance company.
By geographical regions, Latin America It is the region that contributes the most to profit. This increase is largely due to Brazil increasing its net result by 95.1%. In this way, the entire region made a profit of 283.5 million compared to Iberia’s 245.5 million (-17.9% compared to the previous year). Mapfre widened its losses by 80.1% to 30.1 million euros in the rest of Europe, the Middle East and Africa, while in the US it observed a loss of 18.8 million, compared to a profit of 11.2 million in the top nine. Months of 2022.
Mapfre Re doubled its profits to 189.5 million euros despite recording a 100 million hit due to the earthquake in Turkey in the first quarter, while Mawdy reduced its profits by 68.2% to 2.4 million.
revenues grew Compared to the 10.8% collected from January to September 2022, it reached €24,595.8 million. Premiums increased by 10.9% to 20,679.4 million euros.
On a segment basis, General Insurance premium increased by 12.5%, reaching 6 billion 686 million, while the Automobile line increased by 3.9%, reaching 4 billion 625 million. Life Risk increased by 9% to 1.995 million, while Life Savings increased by 40.1% to 1.951 million. The growth of Health and Accidents reached 10.2%, reaching 1,698 million euros.
By geographical regions, highlights andGrowth of Iberia, the region with the highest growth in premiumsIt increased by 17% to 6 billion 744 million euros. Latin America was behind the growth, reaching 7 billion 615.1 million euros with an increase of 11.2 percent, while North America reached 2 billion 64.1 million euros with an increase of 4.1 percent. In EMEA, it decreased by 1.9% to 1,008.2 million.
The premium billing of the reinsurance sector increased by 9.3% to 6,073.2 million euros, while Mawdy increased by 2% to 166.1 million.
Combined rate and dividend
The group’s total Non-Life ratio decreased by 1.7 points compared to the previous year, falling to 96.8%; This situation is completely reduction in accident rate. The Combined Life Risk ratio increased by half a point to 82.8%. Compared to June 2023, the total Non-Life rate increased by three tenths and the Life Risk rate increased by one.
Automobiles remained the worst performing segment, the overall rate is 105.9%, three tenths more than in September 2022, but also three tenths less than three months ago. While the General Insurance branch decreased by 2.8 points compared to the same period last year to 87.1%, the Health and Accident branch increased by 1.8 points to 98%.
On the other hand, Mapfre’s return on equity (ROE) remained unchanged compared to the end of September 2022, reaching 8.2%. If the negative impact of the United States was not taken into account, the return would be 9.1%. one tenth more.
Mapfre’s investment portfolio increased by 2.3% compared to the end of the yearIt reached 42,323.3 million euros. The increase of 7.9% in government fixed income and 9.6% in corporate fixed income is noteworthy. On the other hand, there was a 9 percent decrease in real estate and a 18.8 percent decrease in stock and investment fund investments.
Mapfre also reported that this Friday the board of directors made the following decision: Distribute provisional dividends of EUR 0.06 gross per share based on the results of the 2023 financial year. The shares will be listed without the right to receive dividends from 28 November, the registration date will be 29 November and payment will be made on 30 November.