MAPFRE reported a net result of 744 million euros for the first nine months of 2024, marking a 36% year-on-year increase.

After a EUR 90 million goodwill write-down at Verti Germany, attributable earnings amount to EUR 654 million, reflecting an increase of 39%. The company’s growth is primarily due to improved technical performance across all regions and business lines, which supported an increase in interim dividends to 6.5 cents per share, up 8% from last year.

Adjusted return on equity (ROE) increased to 12%, with equity up 4.5% to over €8.4 billion.

Antonio Huertas (pictured above), president and CEO of MAPFRE, noted that the results reflect the company’s strategic plan, with the increase in dividends underscoring the company’s confidence in growth and commitment to shareholders.

“In addition, we have further strengthened our balance sheet in an exercise of prudence, maintaining the growth of our capital base,” Huertas said.

Premiums increased by 4.6%, driven by general rate adjustments and solid performance in the Life segment. Accident and health premiums increased by 6.4% and auto premiums increased by 4.4%. General property and casualty premiums rose 1.1%, slower due to Brazil’s agricultural business and the depreciation of the Brazilian real.

In life savings, premiums increased by 8.2%, mainly from IBERIA and LATAM, while life protection premiums increased by 6.8%, driven by growth in Mexico and Spain. At constant exchange rates, total premiums increased by 6.1%, general premiums by 5.7% and life premiums by 7.3%. Growth in IBERIA, LATAM and reinsurance showed strong regional performance.

Several factors contributed to the 39% increase in net income: overall technical profitability improved, helped by underwriting and rate adjustments; overall financial results were significant, reaching EUR 576 million due to portfolio returns; and life businesses saw notable contributions from LATAM and IBERIA, the combined life protection rate remained at 85.4%, although acquisition spending in Brazil increased.

MAPFRE also recorded a €90 million goodwill write-down in Verti Germany, a response to the current conditions of the German car market, with a potential update of this impact by the end of the year depending on interest rates and business plans. In addition, a goodwill impairment charge of €75 million was recorded in the United States in 2023.

MAPFRE recognized extraordinary income of 35 million euros from fiscal adjustments, primarily as a result of the declaration of partial unconstitutionality of Royal Decree-Law 3/2016, following an extraordinary income of 46.5 million euros in 2023 from the conclusion of the Bankia alliance.

The non-life combined rate improved by two percentage points to 94.8%, supported by rate adjustments and fewer weather-related catastrophes compared to 2023, which saw losses of more than €100 million following the earthquake in Turkey.

Overall P&C improved to 81.1%, with significant progress in IBERIA, Brazil and North America. The combined auto rate fell 1.7 percentage points to 104.2%, with notable reductions in North America, Brazil and LATAM, although the recovery in IBERIA remains gradual. The combined accident and health ratio remained constant at 99.8%.

Equity increased by 4.5% to over €8.4 billion, supported by operational contributions. Positive net unrealized gains of €194 million offset the negative impact of currency translation of €193 million.

MAPFRE RE, its reinsurance subsidiary, reported a solid net result of €207m for Q3, up 9.3%. Total premiums reached nearly €6.3 billion, with reinsurance accounting for over €4.8 billion, up 6.2%, and global risks contributing €1.4 billion.

The combined rate for MAPFRE RE remained stable at 95.5% as the third quarter was affected by storms in Europe, although there were no other major catastrophic events. The company has seen consolidated reserves in response to secondary hazards and the recurrence of catastrophic events.

Financial results were also positive for MAPFRE RE, although net financial losses totaled EUR 0.5 million, following gains of EUR 8.4 million in 2023.

MAPFRE Group’s Solvency II ratio was 196.6% in June 2024, down slightly from 199.6% at the end of 2023, but within the company’s target range.

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