MAPFRE’s attributable profit for the first half of 2021 increased 34.5% annually to €364 million (approximately $430 million), after accounting for COVID-19-related claims in excess of €266 million, of which approximately €152 million related to life matters.
“These results demonstrate the group’s strength and ability to adapt to changing environments like the one we currently face,” said Fernando Mata, Chief Financial Officer and Board Member of MAPFRE. “This is made possible thanks to the strength of our diversified business model, a leading position in key markets and a solid capital base, which means we can look to the future with optimism.”
MAPFRE premiums increased by 6.2% in the first half to almost €11.7 billion. At constant exchange rates, premium growth would have been more than 11%.
MAPFRE posted sales of just under €14.1 billion, an increase of 6.1%. MAPFRE’s key markets and reinsurance businesses reported “very positive performance,” the company said.
Spain continued to be the main driver of the group’s business, with premium growth of 7% and a profit of €204 million. Despite the challenges in the region, MAPFRE’s activities in almost all Latin American countries ended the first half with a positive result.
Meanwhile, premium volume in the North America region declined 8.1%, reflecting the depreciation of the dollar, the effects of the company’s profitable growth policy and the withdrawal from loss-making business, as well as the impact of pandemic-related mobility restrictions. Premium volume for the US was €829 million, a decrease of 7.5%.
The company’s combined ratio improved 1.6 points to 95.1%. The solvency position was 201% at the end of the first half, in the middle of the range set by the MAPFRE board of directors.
At the end of June, group equity amounted to € 8.5 billion and the balance sheet total to € 71.1 billion. MAPFRE’s investments at the end of the first half amounted to €44.6 billion.