MAPFRE ended the first nine months of 2019 with a net result of EUR 463 million, 12.5% lower than the net result of the same period of 2018. Most of this amount came from Iberia, Latin America and Reinsurance business areas.
MAPFRE 2019 first nine months figures (vs. 9M2018)

• Revenue: EUR 21,619 million (+6.5%), of which:
  • Non-life GWP: EUR 13,568 million (+3.7%)
  • Life GWP: EUR 4,080 million (-1.3%)
• Total premiums: EUR 17,647 million (+2.5%), from the following divisions:
  • Iberia: EUR 5,963 million (+0.4%)
  • LATAM: EUR 5,861 million (+13.3%)
  • North America: EUR 1,818 million (-3.6%)
  • Eurasia: EUR 1,301 million (-4.0%)
  • Reinsurance: EUR 3,306 million (11.2%)
  • Global Risks: EUR 777 million (-5.7%)
  • Asistencia: EUR 684 million (-3.6%)
• Assets under management: EUR 64,577 million (+10.4%)
• Adjusted ROE: 8.1% (-0.3 pp.)
• Combined ratio: 96.4% (-1.7 pp.)
• Solvency ratio: 198.0% (+8.5 pp.)
• Attributable net result: EUR 463 million (-12.5%), from the following divisions:
  • Iberia: EUR 349 million (-1.3%)
  • LATAM: EUR 150 million (+11.7%)
  • North America: EUR 65 million (-)
  • Eurasia: EUR 3 million (-80.7%)
  • Reinsurance: EUR 106 million (-6.3%)
  • Global Risks: EUR (4) million (-139.2%)
  • Asistencia: EUR (86) million [9M2018: EUR 7.4 million]

The Iberia Regional Area (Spain and Portugal) raised premiums in the first nine months of the year by 0.4 percent, to 5.96 billion euros. In Spain, business was up 0.3 percent to 5.86 billion euros. Growth in the Automobile business is noteworthy, increasing by 1.7 percent (compared to 1.4 percent growth for the sector) to 1.72 billion euros, with a 3 percent increase in the number of insured vehicles, to more than 5.9 million units.

Premiums in the Brazil Regional Area were 3.10 billion euros, 3.8 percent higher than in the corresponding period of the previous year. In local currency, this growth would be 5 percent. Net earnings for this regional area increased dramatically by 79.7 percent to 70 million euros, with a significant improvement in combined ratio of more than 12 percentage points, which stood at 91.1 percent.

LATAM North Regional Area business increased by 59.8 percent to 1.57 billion euros, driven principally by Mexico, the Dominican Republic and Guatemala. Net earnings in this regional area grew by 18.6 percent to 42 million euros, and the combined ratio improved 0.7 percentage points to 95.8 percent.

Premiums in the LATAM South Regional Area at the close of September this year were 1.19 billion euros, 1.3 percent down, penalized by the inflationary situation in Argentina. Overall however, the local currency business is growing at a good pace in virtually all countries.

In the North America Regional Area, premiums totaled 1.82 billion euros (-3.6 percent), with an attributable result of 65 million euros (three times greater than the previous year), due, among other factors, to the fall in automobile loss experience and the absence of significant adverse atmospheric phenomena. The combined ratio improved by 2.6 percentage points to 99.7 percent.

The EURASIA Regional Area premium volume was 1.3 billion euros (-4 percent). This decline is mainly the result of the sharp depreciation of the Turkish lira (15.5 percent). In Turkey, premiums totaled 333 million (-7.5 percent), up 9.4 percent in local currency terms. This decline is part of the strict underwriting policy in order to reduce the weight of the automobile third-party liability line. In this regional area, Italy's healthy premium performance stands out, with business volume up 3.2 percent to 365 million euros, as does that of Germany, with 277 million euros in revenue (+3.1 percent).

MAPFRE RE drove its premium volume up by 7.6 percent to 4.08 billion euros. This figure includes Global Risks business premiums (777 million euros). MAPFRE RE's net earnings were 102 million euros (-17.6 percent), affected by an increase in non-catastrophic claim frequency coming from the MAPFRE GLOBAL RISKS portfolio.

The overall combined ratio was 96.4% at group level. Eurasia (106.9%) and Global Risks (111.6%) were the only branches where the indicator exceeded 100% threshold, Global Risks showing an increase of 15.9 percentage points year-on-year.

At the close of September, Group investments amounted to 54.75 billion euros, an increase of 11.1 percent compared to the close of 2018. The majority of these investments, 56.4 percent (30.87 billion euros) are sovereign debt, while 17.6 percent (9.64 billion euros) is in corporate fixed income, 4.7 percent in variable income (2.59 billion euros) and 2.7 percent (1.49 billion euros) in mutual funds.

The Group's Solvency II ratio stood at 198 percent at the end of June 2019, with 87 percent of this in Tier 1 (highest-quality) capital, maintaining great strength and stability, thanks to the Group's high level of diversification and strict investment and management policies.
More financial information about MAPFRE is available at mapfre.com/corporate/institutional-investors/financial-information/quarterly-reports
Source: mapfre.com