Spain’s MAPFRE announced that it had total revenues of €6.942 billion [$9.1 billion], a 1.6 percent increase, and attributable results of €264.3 million [$346.5 million], down by 2.6 percent, in the first quarter of 2013. It said the results were in part attributable to “the Group’s geographical and business diversification,” which it said “reflects the strength of MAPFRE’s business model.”
MAPFRE listed the following earnings highlights for the period:
•The Group’s combined ratio improved by a half percentage point, to 95.1 percent
•The international business already contributes 65 percent of the Group’s premiums and 54 percent of results. Brazil accounts for 20 percent of MAPFRE’s business and the USA 7 percent.
•The domestic business, despite the market contraction, increases its share in Multi-line, Commercial and Life-Protection insurance.
The Group’s consolidated premiums exceeded €5.903 billion [$7.739 billion], a 0.2 percent rise with respect to the same period of the previous year. The Non-Life business reported premiums of €4.465 billion [$5.854 billion] (+1.8 percent) and Life Assurance premiums amounted to €1.439 billion [$1.886 billion] (-4.5 percent).
MAPFRE’s equity increased by €355 million [$465 million] (+3.5 percent), to €10.491 billion [$13.754 billion]. “Virtually all these results stem from the insurance business, with no financial capital gains being worthy of mention,” said the report.
It also pointed out that the Group’s combined ratio, which decreased by a half percentage point, to 95.1 percent, was “thanks to a reduction in costs and a lower loss experience in Latin America and in the Reinsurance business.”
The report also noted that MAPFRE’s “Spain and Portugal Insurance Division, which contributes 35 percent of the Group’s total premiums, exceeded €2.286 billion [$2.997 billion] in premiums (-4.2 percent, while non-Life premiums exceeded €1.594 billion [$2.09 billion] (-1.8 percent). Despite this contraction, the Burial (+2.4 percent), Commercial (+1.6 percent) and Home (+0.6 percent) insurance lines continue to grow.
“Life Assurance premiums amounted to €693 million [$908.5 million](-9.3 percent), due to a lower winning of Life-Savings products as a result of the change in the schedule of sales campaigns planned for the year. However, MAPFRE outperforms the market in the Life-Protection segment.”
MAPFRE also singled out the “positive performance of mutual funds and managed portfolios (+1.6 percent) to €2.6573 billion [$3.484 billion], the recovery in the market value of the investment portfolio and the increase in total managed savings (+3.4 percent), to €26.749 billion [$35.068 billion].
The combined ratio in Spain stood at 90.7 percent, significantly better than the sector average.”
In its International Insurance Division, which contributes 43.7 percent of the Group’s total premiums, they reached €2.829 billion [$3.708 billion], a 6.6 percent increase.
In Latin America, the Group achieved premiums of €2.166 billion [$2.8396 billion] (+3.5 percent), with “strong business growth in countries such as Colombia (+31.7 percent), to €187 million [$245 million]; Chile (+26.1 percent), to €99 million [$130 million]; Mexico (+20.1 percent), to €207 million [$271 million]; or Peru (+18.1 percent), to €74 million [$97 million]. Brazil grew by 18 percent, in local currency, recording premiums of €1.204 billion [$1.578 billion], thus already representing 20 percent of MAPFRE’s business.
In other countries – the USA, the Philippines, Malta, Puerto Rico and Turkey – premiums reached €663 million [$869 million] (+18.5 percent). The business growth in Turkey (+54.8 percent), to €166 million [$217.6 million, stands out. In the U.S. MAPFRE reported premiums of €386 million [$472 million], a 3.2 percent increase. The U.S. currently accounts for 7 percent of the Group’s business.
The gross result from the insurance business improved significantly in Latin America, where the Group grew 20.9 percent, to €168.8 million [$221.3 million], and the combined ratio improved by over 6 percentage points, to 95.9 percent, as a result of the reduction both in the loss ratio and in the expense ratio.
MAPFRE’s Global Businesses Division, which contributes 21 percent of the Group’s premiums and includes MAPFRE’s Reinsurance, Global Risks and Assistance businesses, achieved premiums and operating revenues of €1.4034 billion [$1.84 billion], a 12.6 percent rise.
Accepted premiums from Reinsurance amounted to €875.4 million [$1.1476 billion], an increase of 18.6 percent. The gross result from the reinsurance business stood at €51.2 million [$67.123 million (+2 percent). Global Risks’ premiums amounted to €253.2 million [$332 million] and its gross result reached €24.4 million [$32 million].
Revenues from MAPFRE ASISTENCIA (premiums and income from the sale of services) recorded a remarkable increase of 28.5 percent, to €274.8 million [360 million]. “The growth in Extended Warranty Insurance, due to the acquisition of Century, as well as in Roadside Assistance, both in the USA, should be underscored,” MAPFRE said.
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