Mapfre closes a strong year and begins the new one with notable expectations. Premiums rose by 24 percent in January, and equity increased by over €250 million, driving the debt ratio from 26 percent to 25.2 percent in a single month.
In 2022, nearing a turnover of 30,000 million euros, Mapfre reported the highest income in its history. Chairman Antonio Huertas framed the results at the General Shareholders Meeting in Madrid, noting that despite a challenging international economic climate, Mapfre closed a very solid year thanks to geographic, product and balance diversity, among other factors.
The confirmed 2022 accounts show a net profit of 642 million euros and revenue climbing 8.3 percent to 29,510 million euros. Celebrating its 90th anniversary in 2023, the company achieved its highest annual record yet.
At the meeting, shareholders approved the distribution of stocks and a gross total dividend of 0.145 euro per share. Mapfre allocated a total of 447 million euros to shareholders in 2022, a level described by the company president as among the highest in the Spanish market.
Huertas suggested that average premium growth for 2023 and 2024 would range from 5 to 6 percent, while the pace under the 2022-2024 strategic plan would exceed 7 percent after the first year. The average combined ratio was expected to be around 96 percent for both years, and the target return on equity remained between 9 and 10 percent.
The head of Mapfre emphasized continued work over the next two years to maintain a solvency margin near 200 percent, a payout ratio over 50 percent, and a debt ratio between 23 and 25 percent.
In terms of stock market performance, Huertas noted that last year the share price rose slightly while the Ibex 35 declined.
Appointments
Two new directors were appointed at the Shareholders’ Meeting, Francesco Paolo Vanni D’Archirafi as an independent and Elena Sanz Isla as a director. They were joined by the re-election of José Manuel Inchausti Pérez, Antonio Miguel-Romero de Olano, Antonio Gómez Ciria and María Amparo Jiménez Urgal.
Strategic Plan
The Mapfre president underscored sustainable, balanced and profitable growth, stronger internal efficiency, and a focus on transformation as the core pillars of the strategic plan. He highlighted progress in productivity, noting a reduction in overheads and acquisitions contributing to the positive balance. Internal expenses grew less than the premium it earned, a sign of tightening efficiency.
In his remarks, Huertas reiterated that business development has been very positive and that the balance sheet remains healthy with solid solvency.
Social Responsibility
Mapfre reaffirmed its social goals, including reducing the gender pay gap to 1.86 percent by 2022 and maintaining a strong management confidence. The company also aims to have 3.5 percent of the workforce represented by employees with disabilities, a milestone achieved in 2022. Additionally, at least 90 percent of the investment portfolio should meet ESG criteria for the environmental, social, and governance framework over the three-year span.
At the Ordinary General Assembly, Mapfre advanced 99.6 percent of its sustainability plan. The company reiterates its ambition to become carbon neutral in all operating markets by 2030.
90 Years of History
Huertas closed with reflections on Mapfre’s 90-year journey. The executive noted the company will celebrate ninety years of existence, vision, and effort, acknowledging the contributions of many generations to its growth and transformation. Ninety years in, Mapfre stands as a leading insurer in the Spanish-speaking world and a leading reinsurer globally, achieving record revenue and continued expansion.
The chairman concluded his remarks with a moment of quiet reflection. The year 2023 marks the insurer’s 90th anniversary, a milestone celebrated across markets where Mapfre operates.