MAPFRE generates €609 million in 2019, a 15.2% increase

MAPFRE’s net earnings in 2019 came in a €609 million, 15.2% better than the previous year


MAPFRE’s net earnings in 2019 came in a €609 million, 15.2% better than the previous year, while the Group’s revenues rose by 7.1% to €28.47 billion. Premiums were up by 2.2 percent to €23.04 billion thanks to, among other things, the solid performance of business in Spain, in the LATAM North regional area and in the Reinsurance business.

It is important to note that the cost of damages caused by the Faxai and Hagibis typhoons in Japan (€107 million), riots in Chile (€24 million) and heavy rain and storms in Spain (€17 million), among other events, had a heavy impact on the results for 2019. Nevertheless, thanks to the measures taken within the profitable growth framework, MAPFRE Group’s combined ratio was marked at 97.6% and their attributable equity stood at €8.85 billion (a 10.8% increase) at the end of the fiscal year.

Furthermore, MAPFRE Group’s total assets grew by 7.8%, reaching a total of €72.51 billion. Group investments increased by 8.6% in the last year to €53.52 billion, with 56.2%  of these investments in sovereign debt and 17.5% in corporate fixed income, while 5.2% are equity investments and 4.7% are cash. At the close of September 2019, the Solvency II ratio stood at 195 percent, compared to 198 percent in June. However, thanks to a high level of diversification and a stringent investment and management policy, MAPFRE Group’s solvency ratio continues to remain robust and stable.

Insurance Unit premiums totalled €19.29 billion in 2019, indicating a rise of 3% from the previous year, and attributable earnings were up by 17.7% amounting to €806 million. Notwithstanding this, MAPFRE Spain continues to be a market leader for ten quarters, while earnings in Brazil and LATAM North grew by 79% and 44.6% respectively. Peru continues to be a driving force for the LATAM Southern region, strongly contributing to a premium volume of €1.6 billion, while US earnings increased sevenfold to €57 million. On the other hand, the EURASIA Regional Area recorded a premium volume of €1.7 billion, boasting a 21% increase in earnings to €15 million.

Despite the aforementioned increase in disasters, the Reinsurance Unit achieved earnings of €77 million in 2019. Reinsurance Unit premiums stood at €4.52 billion, which was 19.4% higher than in the previous year, while MAPFRE GLOBAL RISKS premium volume stood at €1.06 billion. The latter figure was a 9.7% decrease from the previous year due to several large claims made in 2019, with a net cost of €27 million.

Regarding social dividends, the main indicators of the Group’s social commitment included:

  • Tax contribution amounting to €325 million equivalent to an effective rate of 25%;
  • Scoring high in their environmental, social and governance (ESG) commitment;
  • Commitment to employment, with 97% of MAPFRE’s 34,000 employees worldwide having a permanent contract; commitment to diversity, having 48.3% of vacancies and positions of high responsibility filled by women and people with disabilities representing at nearly 3% of the workforce;
  • Commitment to society, with 125,000 people have benefitted from the work of over 10,000 employees and their families through the MAPFRE’s Corporate Volunteering Program;

Environmental commitment by reducing its carbon footprint with the prospect of achieving neutrality in global emissions by 2030, with the most immediate objective being the achievement of zero emissions in Spain and Portugal by the end of 2021.

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