In the first quarter of the year, Mapfre, the largest insurer in the country, reported a remarkable 69.5% increase in net profit, reaching 216.3 million euros. This growth was primarily driven by a doubling of profits in the reinsurance sector, which totaled 67 million euros, as well as expansion in Spain and Brazil. Premiums also saw an impressive 4.6% increase in the first three months, totaling 8,142 million euros, with Iberia and Latin America experiencing significant growth.
Despite these positive numbers, the automobile segment is still facing challenges with a combined ratio above 100%. However, Mapfre is optimistic about the remainder of the year despite geopolitical uncertainties. The company is focused on improving profitability in this key segment and anticipates positive results by 2024.
To achieve this goal, measures such as rate increases and policy cancelations are being implemented. Additionally, Mapfre has approved the distribution of a dividend to shareholders and is set to pay 0.09 euros per share on May 24. Shareholders must hold company shares before the 22nd to be eligible for the dividend.
In terms of premiums by segment, non-life premiums increased by 6.9%, with the reinsurance sector seeing the largest increase at 9.3%. General Insurance and Auto premiums also rose, while Health and Accident premiums grew by 6%. Overall, Mapfre’s financial performance in the first quarter shows positive growth and a strategic focus on improving profitability in key segments such as the automobile sector.
Mapfre’s financial report for Q1 highlights its strong performance across multiple segments. Despite some challenges in specific areas like auto insurance where combined ratios are above one hundred percent; overall financial health is robust thanks to expanding into new markets like Spain & Brazil plus an increase in net profit from reinsurance sector worth €67Mn which led to growth of over €108Mn compared to last year’s Q1 figures.
The company remains optimistic about future prospects despite geopolitical uncertainties but has put measures into place to improve profitability within key segments such as automotive insurance. Dividends will be distributed among shareholders with €0.09 per share paid out on May 24th – eligibility criteria includes holding shares before May 22nd date.
Key takeaways include:
– Net profit increased by over €108Mn or around 69% YoY due mainly to doubled earnings from reinsurance sector (€67Mn) and expansion into Spanish & Brazilian markets.
– Premium income rose across all segments including auto insurance but still faces challenges due to high combined ratios above one hundred percent.
– Dividends will be paid out among shareholders starting from May 24th with eligibility criteria based on holding shares before May 22nd date.
– Company aims for improved profitability within key segments especially automotive insurance with plans that include rate hikes & policy cancellations among other measures until they reach their target of achieving positive results by end of year/early next year (i.e., by end of Q4/Q1).