MAPFRE, FY2019: group's revenues rose 7.1% at the end of the year

12 February 2020 — press.release
MAPFRE's net earnings in 2019 came in at EUR 609 million, 15.2 percent better than the previous year (FY2018: EUR 529 million), while Group revenues rose 7.1 percent to EUR 28.5 billion (FY2018: EUR 26.6 billion).


MAPFRE FY2019 (12 months) figures, y-o-y changes


  • Revenue: EUR 28,472 million (+7.1%)
  • Total written and accepted premiums: EUR 23,044 million (+2.2%), of which:
    • Iberia: EUR 7,718 million (+0.8%)
    • LATAM: EUR 7,547 million (+9.6%)
    • International: EUR 4,027 million (-3.9%)
    • Reinsurance: EUR 5,581 million (+12.5%)
  • Investment income: EUR 3,288 million (+27.7%)
  • Non-Life Combined Ratio: 97.6% (stable)
  • Solvency ratio: 194.6% (+5.1 pp., September 2018)
  • Attributable net result: EUR 609 million (+15.2%)


Premiums were up by 2.2 percent to EUR 23.04 billion, thanks, among other things, to the solid performance of the business in Spain, in the LATAM North regional area and in the Reinsurance business. Currency conversion rates were not a significant factor in the year (+0.2 percent).

Insurance Unit premiums in 2019 totaled EUR 19.29 billion, showing a rise of 3 percent from the previous year, and attributable earnings were up 17.7 percent to EUR 806 million.

In the EURASIA Regional Area, recorded premium volume was EUR 1.7 billion (-4%), while earnings increased by 21 percent to EUR 15 million. Progress in Germany was notable, with growth of 4.7 percent to EUR 343 million. Italy maintained its business volume stable (EUR 471 million). In Turkey, premiums amounted to EUR 448 million (-7.7%), strongly influenced by the depreciation of the Turkish lira (-13.1%) and the strict underwriting policy aimed at reducing the weight of the Automobile line, within the framework of the Group's profitable growth policy.

Reinsurance unit premiums at the close of 2019 were EUR 4.52 billion, 19.4 percent higher than in the previous year. Net earnings for the Reinsurance business stood at EUR 77 million, down 48 percent due to the effects of the Faxai and Hagibis typhoons and the riots in Chile.

MAPFRE's combined ratio stands at 97.6 percent, reflecting the improvement of this indicator in Brazil, LATAM North and the United States, thanks to the measures taken within the profitable growth framework.

The results for 2019 were heavily marked by the cost of the Faxai and Hagibis typhoons in Japan (EUR 107 million), the damage caused by riots in Chile (EUR 24 million) and the damage caused by heavy rain and storms in Spain (EUR 17 million), among other events. The accounts for 2019 also show an impairment of MAPFRE ASISTENCIA's goodwill in the amount of EUR 66 million net. Excluding the catastrophes and goodwill impairment in both 2018 and 2019, MAPFRE's earnings would have risen by 1 percent to EUR 822 million.

This goodwill impairment has no effect on MAPFRE's cash flow, nor does it affect the Group's financial strength and flexibility or the capital models on which the ratings and high solvency margins are based, as goodwill is excluded from their calculation.

The Group's attributable equity at the 2019 fiscal year-end stood at EUR 8.85 billion, up 10.8 percent, and total assets grew 7.8 percent, reaching EUR 72.51 billion.

Group investments increased by 8.6 percent in the last year to EUR 53.52 billion, with 56.2 percent of these investments in sovereign debt and 17.5 percent in corporate fixed income, while 5.2 percent are equity investments and 4.7 percent are cash.

At the close of September 2019, the Solvency II ratio stood at 195 percent, compared to 198 percent in June, with 87 percent high-quality capital (Tier 1). It is important to note that the solvency ratio remains both robust and stable, thanks to a high level of diversification and a stringent investment and management policy.


More financial information about MAPFRE can be found at mapfre.com/corporate/institutional-investors/financial-information.


Source: mapfre.com
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