The good results achieved by MAPFRE in the first half of this year can be explained in two words: profitable growth
What does this mean exactly? The answer is seemingly straightforward: ensuring the company grows in a way that improves profitability. This is underpinned by a three-year Strategy from 2016-18 which defines how to do it, sets priorities and establishes tailored objectives for each country.
This Strategy is working and, alongside other factors, explains the excellent performance in: Spain, where premiums grew by over 4 percent but the result increased by more than 17 percent; Colombia, where premiums rose by nearly 5 percent but the result increased by 10 percent; or Turkey, where premiums barely changed in local currency terms but which doubled its contribution to Group profit. This strategy is now at the mid-point, meaning there is still potential for greater impact in the Group, since it is not being applied at the same pace across all countries.
Another element worth highlighting is the Combined Ratio, the measure of insurance industry efficiency in the Non-Life business. MAPFRE’s robust half-year results are all the more remarkable considering they were achieved with a Combined Ratio of 97.2 percent for the whole Group. The reinsurance business posted an exceptional 92.3 percent, but other key markets for MAPFRE, such as Spain and Brazil, achieved ratios of slightly above 95 percent.