- MAPFRE EARNED 775 MILLION EUROS, UP 9.4 PERCENT
The driver behind this result is the profitable growth strategy that the company is applying, which in essence involves concentrating all efforts on those products or business lines that are the most profitable while at the same time exiting the sale of those products that do not meet these criteria. This has facilitated premium growth of more than 2 percent delivering profit growth of almost 10 percent. MAPFRE continues to grow, doing so with greater strength.
- COMBINED RATIO OF 97.4 PERCENT, more than one point better than 2015
MAPFRE has continued to cut its global costs so as to improve the company’s efficiency. In 2016, these costs dropped by 1 percent. This has contributed once again to improving the company’s combined ratio. This indicator of an insurer’s business has been particularly good in countries such as Spain, where the combined ratio stood at 95 percent at the close of 2016.
- STRENGTH IN THE THREE MOST IMPORTANT MARKETS: SPAIN, BRAZIL AND THE USA
In Spain premiums grew by 7.1 percent. This has allowed MAPFRE to reinforce its position as the leader in Non-Life insurance, particularly in Automobiles, Multiperil and Health. Growth in Life, up almost 18 percent, was also very strong.
In Brazil, premium revenues dropped off as a result of the general slowdown in economic activity the country experienced. Despite this, the result is practically the same as the previous year, while the combined ratio was an excellent 94.3 percent.
In the United States, MAPFRE has gone from a loss of 75 million euros in 2015, driven by exceptional winter storm-related claim levels, to delivering 80 million euros to Group results, and the company has made progress with its growth plan for the country, where we are one of the 20 leading automobile insurers.
- MAPFRE RE EARNS 186 MILLION EUROS
The reinsurance business, which MAPFRE executes globally both for its own business and other insurers, saw its results rise by 22 percent, delivering Group profits of 186 million euros.
- CORRECTNESS OF INVESTMENT STRATEGY
MAPFRE anticipated the drop in European interest rates by lengthening its portfolio duration and diversifying it, so as to reduce exposure to public debt, which offered very low returns. Today, the average portfolio duration is between 6 and 7 years, giving MAPFRE double the return achieved by the Non-Life market, and triple that of the Life market.
- DOUBLE SOLVENCY CAPITAL
The new regulation no longer rewards having an elevated solvency level, but one that is also adjusted to the risks undertaken, thereby freeing up the remaining capital so it can be devoted to the business. MAPFRE finds itself in a very comfortable position of 200 percent, in line with the largest European insurers. The most salient aspect of this is that 93 percent of these funds are of excellent quality (TIER 1).