MAPFRE, the Spanish multinational insurance company, based in Majadahonda, Madrid, has released its Q1 2023 results, revealing strong premium growth in the first quarter of the year, despite market challenges.
According to the data, overall revenue has risen by 21%, and currently stands at US$9.9 billion. The over 20% increase in revenue consolidated the trends from recent quarters and reflects both a relevant increase in business volume as well as an improvement in financial income, MAPFRE said.
However, the net result hit $140.5 million – a drop of 17%, and MAPFRE attributes this to the earthquake in Turkey – which cost an estimated $84.5 million, coupled with the complex auto environment, costing $5.4 approximately.
The latest report shows the impact of those events, compared to figures in 2022 Q1, when the most relevant cat claim for the company was the drought in Brazil, with a $40.6 million net impact for the Group.
Impressive business growth in North America, LATAM and Iberia
MAPFRE’s data shows that their operations in Iberia grew above the market rate, for both Non Life and Life sectors, with 31% premium growth, supported by Life Savings business. This continues to be the highest volume region in the Group. Premiums in Iberia reached over $3.6 billion, a rise of 31%, with Spain standing out with nearly 3.3 billion (+30%). Premiums in Portugal reached 74 million – a rise of 59%.
LATAM shows even more impressive growth, with improved Life result showing a 95% growth rise, and Non-Life financial result showing a 20%, in a better market context. The reinsurance unit also grew 7% and global risks, at 11%. MAPFRE has said it will pay the final dividend against 2022 results on May 24th.
US region posts losses of $10.2 following weather events
In the North America Regional Area, premiums reached $641.6 million at March, growing 8.1% in euros and 4.1% in dollars. The largest contributor was the US with $577.7 million and 8% growth. Puerto Rico recorded an 8.5% increase, reaching $63.7 in premiums.
The US Auto business grew 8.1%. The fleet reached 1,414,304 insured vehicles, with a slight reduction in 2023 while the Non-Life combined ratio stands at 107.7%, affected by weather-related events (Arctic Freeze) in the US, which caused higher losses in the Homeowners line, with a net cost of $14.2 million.
As of May, tariffs in this line will increase around 15% on average to compensate the rate increase for catastrophic reinsurance coverage. The Auto combined ratio stands at 105%, a significant improvement compared to the fourth quarter of 2022 (118%), supported by already implemented tariff increases. Auto rates will go up an additional 6.5% starting in May. All of these elements has led the region to post losses of $10.2 million.
In 2023, MAPFRE ASISTENCIA has entered a new phase, with the launch of the new brand, MAWDY, present in 23 countries and focused on strategic markets for the group, mainly Europe and Latin America.
Speaking about the newly released figures, Antonio Huertas, President of MAPFRE, said: “Once again, the high level of business diversification allows us to face challenges, like those presented by inflation in Non-Life lines, with a sustainable result. These results make us feel optimistic in the current context and are proof of the strength of our business model.”
