MAPFRE’s attributable earnings for the first half of 2021 spiked 34.5% annually to €364 million (about £311 million), after accounting for COVID-19-related claims in excess of €266 million, about €152 million of which were related to the company’s life business.
“These results demonstrate the group’s strength and its ability to adapt to changing environments such as the one we’re facing at present,” said Fernando Mata, MAPFRE chief financial officer and board member. “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.”
MAPFRE’s premiums grew by 6.2% in the first half, reaching nearly €11.7 billion. At constant exchange rates, premium growth would have exceeded 11%.
MAPFRE recorded revenues of just under €14.1 billion, a 6.1% increase. MAPFRE’s main markets and reinsurance business reported “very positive performance,” the company said.
Spain remained the main driver for the group’s business, posting premium growth of 7% and earnings of €204 million. Despite challenges in the region, MAPFRE’s business in nearly all Latin American countries closed the first half with a positive result.
Meanwhile, premium volume in the North America regional area was down 8.1%, driven by the depreciation of the dollar, the effects of the company’s profitable growth policy and its withdrawal from loss-making businesses, as well as the impact of pandemic-related mobility restrictions. Premium volume for the US was €829 million, down 7.5%.
The company’s combined ratio improved by 1.6 points to hit 95.1%. Its solvency position stood at 201% at the end of the first half, at the midpoint of the range established by MAPFRE’s board.
Group equity at the close of June was €8.5 billion, and total assets were €71.1 billion. MAPFRE’s investments at the close of the first half were €44.6 billion.