MAPFRE boosts earning by 18.9% to €529 million

Increase in premiums in Malta despite challenges

MAPFRE’s net earnings for the first nine months of 2018 amounted to €529 million, up 18.9% on the same period of the previous year. Meanwhile, the revenue generated was of €20.3 billion euros (down 4.7%), while premiums totalled €17.22billion.

In Malta, represented by MAPFRE Middlesea and MAPFRE MSV Life, volume stood at €306 million, an increase of 9.8%, despite the decrease in premiums across the Euroasia Regional Area.

The Group’s combined ratio improved by 0.7 percentage points to reach 98.1%, while the solvency ratio at the end of June stood at 201.7%. Equity amounted to almost €9.8 billion, while shareholders’ equity totaled €8.27 billion at the end of September 2018. Total assets came to €67.89 billion.

Group investments at the close of the first nine months of the year totalled €49.88 billion euros, with 54.4% concentrated in sovereign debt and 18.7% in corporate fixed income.

MAPFRE has displayed impressive resilience and strength in weathering sharp currency depreciations across many of the countries in which it operates, coupled with a notable reduction in financial income due to the prevailing climate of low interest rates.

Premiums in the Eurasia Regional Area were down 6.3% to €1.36billion, due to depreciation of the region’s main currencies. In Turkey, premiums amounted to €360 million ( down 28.1%) – a result of both the depreciating lira and the impact of regulatory changes on the Automobile insurance segment, which led to significant downward pricing pressure. In Italy, premiums improved slightly, totalling €354 million (an increase in 0.4%). In Germany, volume stood at €268 million ( an increase of 3.8%).

Business in Spain remains the main growth driver for MAPFRE, while a significant contribution was made by MAPFRE RE and the Regional Areas of Latin America as well as MAPFRE Global Risks and MAPFRE Assistencia.