Mapfre continues on the path of recovery this year due to the high costs derived from high inflation. The insurer obtained a profit of 470.6 million euros at the end of the third quarter of the year, this represents 3.6% less compared to the same period last year, although the truth is that it improves and gains some ground compared to 2022 if compared to the figures obtained in June.
There are two relevant events that have marked their accounts until September. On the one hand, Mapfre adds 46.5 million euros after closing the arbitration for the breakdown of the banking-insurance alliance with Bankia. And, on the negative side, “following prudential criteria,” the company says, Mapfre has provisioned 75 million euros in its US subsidiary due to the deterioration of goodwill (it is equivalent to 11% of its book value). “This deterioration is based on the current context of rising interest rates and the adverse environment in the Automobile industry due to inflation,” says the firm, which will update this figure at the end of the year.
By region, Mapfre’s business in Iberia (which is, primarily, Spain) continues on an upward trend despite the fact that its profit is still 17.9% lower than last year, with 245.5 million euros. Premiums issued increased by 17%, heavily affected by high costs. Those who do contribute, and do so with special relevance, are Brazil where the company practically doubles its profits (they are 95% higher than a year ago) to reach 181.7 million euros and a growth in premiums of 7.3%.
The business in North America continues to generate losses, amounting to 18.8 million euros, while the Reinsurance business (mainly linked to natural catastrophes, which other insurers use to cover themselves) soars by 118.6%, reaching the third highest profit in the world. group, with 167.3 million euros.
Mapfre grows revenue by 10.8% thanks to the increase in premiums in all lines, both Life and Non-Life, where the combined ratio improves and falls to 96.8%, 1.7 points below (less than 100 indicates that a business is profitable in the insurance sector). The group’s premiums reached 24,595 million euros at the end of September. Within Non-Life, premiums increased more than 1,300 million euros in the first nine months of the year (up to 16,294 million), with a growth of 12.5% in General Insurance, 10.2% in Health and Accident and 3.9% in Cars.