Mapfre boosts earning by 18.9% to €529m

Increase in premiums in Malta despite challenges

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

In Malta, represented by Mapfre Middlesea and Mapfre MSV Life, volume stood at €306m, 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 €9.8bn, while shareholders’ equity totaled €8.27bn at the end of September. Total assets came to €67.89bn.

Group investments at the close of the first nine months of the year totaled €49.88bn, 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 €1.36bn, due to depreciation of the region’s main currencies. In Turkey, premiums amounted to €360m (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, totaling €354m (an increase in 0.4%). In Germany, volume stood at €268m (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.