Another European insurer takes significant blow from hurricanes

Finances hit due to strong presence in devastated Puerto Rico

Another European insurer takes significant blow from hurricanes

Insurance News

By Ryan Smith

Spanish insurer Mapfre has announced a 22.3% drop in its nine-month profits in the wake of hurricanes Harvey, Irma and Maria, and the recent earthquakes in Mexico City.

The catastrophes, which hit practically back-to-back, have caused hundreds of billions of dollars in damage and taken a bite out of insurers’ profits.

Natural disasters impacted Mapfre’s results by an estimated 176.4 million euros (SGD$280.9 million), according to a Reuters report. That shrank its net profit by 22.3%, to 444.6 million euros, for the first nine months.

Had it not been for the catastrophes, Mapfre’s earnings would have risen 8.6%, according to Reuters. The company said in a statement that Irma and Maria had the greatest impact on its clients, with an estimated total cost of 108.2 million euros. Mapfre is one the leading insurers in Puerto Rico, which was devastated by Hurricane Maria.

“Despite the exceptional situation due to the concentration of natural catastrophes, the financial capacity and solvency of the Mapfre group has been proven to respond to our policyholders,” Mapfre CEO Fernando Mata said in a statement.

Related stories:
Munich Re predicts $4.31 billion cost of hurricanes
XL Group sees profits tumble thanks to natural catastrophes

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