MAPFRE Details Future Plans – U.S. Expansion, Increased Operating Revenue

March 17, 2014

Spanish insurance group MAPFRE’s Chairman and CEO, Antonio Huertas, referred to the strategic objectives for the next three years, as he announced the highlights at its Annual General Meeting. The group forecast operating revenues by 2016 at €30 million [$41 million] with a combined ratio of 96 percent and steady dividends, as the group expands its U.S. activities, including selling insurance online.

MAPFRE’s announcement points out that it is “currently active in 47 countries, and that it “is determined to consolidate its leadership position in those regions where it is already a key player, and to push forward with its development in the North American, European and Asian markets, which will become strategic areas for the coming years.”

In Asia Huertas noted that MAPFRE has “signed an agreement with China’s largest insurer, the People’s Insurance Company (Group) of China (PICC), for the distribution of Life, Accident, Health and Travel insurance products. This alliance reinforces MAPFRE’s relationship with China’s number one insurance group, with which the company already cooperates in some motor warranty programs, and is another step forward in MAPFRE’s expansion in this market, which has enormous potential. Additionally, action will be taken on the development of compulsory motor insurance in China.”

MAPFRE already does business in 16 U.S. states, and “is currently developing its commercial and services network in Pennsylvania.” The bulletin said that over the next few years, “it will launch operations in a further three states: Illinois in 2015, followed by Virginia and Wisconsin in 2016, thereby extending MAPFRE’s presence to a total of 20 states.

“Moreover, in the coming months, the Group will launch a new Life insurance subsidiary, specializing in Protection products; push ahead with the search for new distribution networks, which will include opening more company-owned branches, and it will also roll out an online platform for direct insurance sales in 2015.”

The Group also said it plans to expand in “Europe, the Middle East and Africa – EMEA (which excludes Spain), with the aim of doubling its business volume there within the next five years, focusing on growth opportunities in Central and Eastern Europe and in the Mediterranean countries.

As far as Latin America is concerned, the Group will continue to grow significantly in ”

In the Southern Latin America Regional Area, MAPFRE said it “is looking to grow organically, increase market share in all countries and strengthen its distribution networks.

“In the Iberia Regional Area (Spain and Portugal), MAPFRE will be at the fore of the recovery in the insurance sector over the coming years, with an above average increase in premiums across all the main insurance lines, further reinforcing its market-leading position in Spain.”

In conclusion MAPFRE pointed out that in 2013 it increased its attributable earnings by 18.7 percent, to €790.5 million [$1.1 billion], and revenue exceeded €25,889 million [$36 million], up 2.3 percent on the figure for 2012.

Source: MAPFRE Group

Topics USA Trends Profit Loss Europe China

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