Last Updated on Tuesday, 27 July, 2021 at 10:12 am by Andre Camilleri
Mapfre’s attributable earnings for the first six months of this year were 364 million euros, which represents a growth of 34.5% over the same period of the previous year, after accounting for claims related to COVID-19 in excess of €266 million, most of which were related to the Life business (€152 million).
“These results demonstrate the Group’s strength and its ability to adapt to changing environments such as the one we’re facing at present. This is made possible thanks to the strength of our diversified business model, a leading position in the main markets, as well as solid capital strength, enabling us to face the future with optimism,” highlighted Fernando Mata, Mapfre CFO and Member of the Board.
The Group’s premiums grew by 6.2% in the first six months of the year, reaching almost 11.7 billion euros. At constant exchange rates, premium growth would have exceeded 11%, after several years of canceling loss-making businesses as part of the Group’s profitable growth strategy, and accompanied by an excellent combined ratio, which has improved 1.6 percentage points compared to June 2020 to stand at 95.1%.
Group equity at the close of June 2021 was €8.5 billion and total assets were €71.1 billion.
Mapfre’s investments at the close of the first half of this year amounted to €44.6 billion. The Solvency II ratio stood at 201% in March 2021, reflecting the strength and resilience of the balance sheet and active investment management.
Insurance Unit premiums at the close of the first half of this year came to €9.71 billion (+6.8%). The result from this unit is also considered very positive despite the fact that it is being compared against a semester of intense paralysis in activity in the main economies of the Group due to the massive COVID-related confinements.
Premiums for the Eurasia Regional Area stood at €738 million (-4.9%) at the close of the first half of the year, mainly as a result of the depreciation of the Turkish lira (-25.2%). The contribution from Germany, with premiums of €223 million (+3.7%) was notable, thanks to a highly effective sales campaign and an excellent renewal ratio. Malta also performed well, contributing €210 million (+25.9%), thanks to the increase in the Life Savings business which grew by 33%. Lastly, Turkey contributed €153 million, (-15.7%).