According to reports from the company, this growth encompasses both the reinsurance sector and the Global Risks business. Specifically, the Reinsurance business observed a 7.8% expansion, while the Global Risks sector experienced a robust surge of 12.2%.
MAPFRE RE attributes part of this growth to two significant catastrophic events: the earthquake in Turkey and Hurricane Otis in Mexico, which together incurred a combined impact of €153 million. However, the absence of events in the Atlantic and the offsetting effect of other frequency events, including storms in Europe, tempered the overall impact.
The company also reported a significant improvement in its combined ratio, which stood at 95.6% by the close of 2023, signaling enhanced operational efficiency and risk management within the reinsurance arm.
Moreover, MAPFRE Re’s financial performance saw a notable uptick, with a gross contribution of €128.2 million to the Non-Life result, compared to €79.5 million in the previous year. Additionally, net realized gains had a substantial impact on the result, totalling €12.3 million compared to €2.4 million in the preceding year.
MAPFRE RE’s net result surged to €244.6 million, a remarkable 70.6% increase year-on-year. Meanwhile, its parent company, MAPFRE, reported a 9.7% growth in premiums, reaching nearly €27 billion in 2023, a historic high for the company.
The rise in premiums reflects a broad improvement across business sectors, with Non-Life and Life insurance increasing by 8.4% and 14.6%, respectively. Group revenue climbed by 9.2% to over €32.2 billion.
In General P&C business, the combined ratio was 100.8%, impacted by adverse weather events and increased costs of cat reinsurance protection.
The net result for 2023 reached €692 million, up 7.7%, or €767 million (+19.4%) without a €75 million goodwill writedown in the United States.
LATAM contributed €373 million, up 24%, while IBERIA saw the highest premium growth at 15.8%.
Commenting on the results, Antonio Huertas, Chairman and CEO of MAPFRE, (main picture) said: “In 2023, we hit records in terms of premiums, and this strong growth is already translating into profitability, with the adjusted ROE close to 10%. MAPFRE is overcoming the challenges of the current context and continues advancing its business transformation.”
He added: “Furthermore, we reaffirm the commitment to our shareholders with a final dividend of 9 cents, proof of the strength of the Group’s results and financial position.”
Join MAPFRE in London at Insurtech Insights Europe 2024
Barbara Fernandez, Head of Insur_space and Disruptive Innovation at MAPFRE, will be a panellist on the session: Insurance in the Gen AI Massively Adopted Future, at Insurtech Insights Europe, 2024, on March 20-21st, at the InterContinental London – The 02.
