MAPFRE Posts 10.1% Rise in 2012 Premiums to $29.28 Billion

February 7, 2013

Spain’s MAPFRE Group reported a 10.1 percent increase in premiums in 2012 to €21.5798 billion [$29.2838 billion], with its international business contributing over 60 percent of premiums and results from particularly strong growth in the U.S. and Brazil. The group’s overall equity grew by more than €750 million [$1.0177 billion] in 2012.

In his presentation of the group’s results Chairman and CEO Antonio Huertas highlighted the 7.5 percent increase in revenues, indicating it was primarily due to the good performance of the international business, especially in Brazil and the USA.

The earnings announcement said the Group’s attributable result amounted to €665.7 million [$903.35 million] a 30.9 percent decrease from 2011, “due to provisions and impairments, which amounted to €404.8 million [$549.3 million]. The recurring result, however, grew by 9.6 percent, to €942 million [$1.2783 billion], thus reflecting the Group’s strength, with an increase in equity in 2012 in excess of €750 million, to €7.8105 billion [$10.59885 billion].”

Huertas explained: “MAPFRE’s geographical diversification and business strategy drives continued growth and maintains a healthy balance. Moreover, the trust shown by the market in the placement of the Group’s securities, as well as our liquidity and solvency position, with a ratio of 261 percent, help us to face the future with confidence.”

The Domestic Insurance Division, which contributes 33 percent of the total premiums, posted €7.5076 billion [10.1878 billion], “a 4.5 percent decrease, compared to a 5.3 percent contraction of the sector, thus representing an increase in the market share despite the strong decline in domestic demand in Spain.”

The International Insurance Division, which comprises the insurance activities abroad, achieved premiums of €10.833.9 billion [$14.7085 billion], a rise of 23.3 percent, which, the bulletin noted, “contributes 47 percent of the Group’s total premiums.”

In the Latin American countries, the Group recorded premiums of €8.6491 billion [$11.7368 billion], a 25.8 percent increase. Business growth in Brazil rose by 33.7 percent, to €4.7614 billion [$6.4612 billion]. The country accounts for 55 percent of MAPFRE’s business in the region.

Increases in other Latin American countries were listed as follows: Colombia (+30.3 percent), Peru (+30.1 percent), Venezuela (+27.9 percent), Central America (+25.4 percent) and Mexico (+25.1 percent).

The report also, said: “In all the other countries where the Group engages in insurance operations –the USA, the Philippines, Malta, Portugal and Turkey– premiums reached €2.1848 million [$2.9647 billion], 14.1 percent more than in the previous year. Of note is the increase in the USA, to €1.5139 million [$2.05436 billion] (+8.1 percent), and in Turkey, to €387.1 million [$525.29 million] (+38.6 percent).”

Source: MAPFRE Group

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