Mapfre, the largest Spanish insurer, recorded a 39% increase in its net profit in the first nine months of the year thanks to the rise in prices, to more favorable weather conditions and the lesser severity of natural disasters, which increased the profitability of its non-life business.
Mapfre shares rose 4.1% at 1137 GMT (6:37pm) after Tuesday’s results, leading the Ibex 35 index.Net profit for the January-September period amounted to 654 million euros (US$804 million), with US$23,364 million in premiums, according to Mapfre.
The group’s combined non-life ratio, the sector’s main measure of profitability, improved by two percentage points, to 94.8%, a favorable change attributed to the increase in insurance policy premiums and the lower frequency and severity of natural disasters.
“The most important event in the third quarter was the storms in Europe and there have been no other relevant catastrophic losses”said Mapfre’s deputy financial director, José Luis Jiménez, during a call with journalists.
“However, given the great volatility of weather events and the continued increase in medium-intensity claims,We have prudently reinforced the reserves of this business unit”.
A devastating earthquake in Türkiye in early 2023 had cost the company more than $108 million in the first half of last year. In January-September of this year, Mapfre also recorded an accounting loss of US$97.2 million due to the depreciation of the value of Verti Germany, your auto insurance unit.
“The car in Germany is going through a scenario of significant losses due to high levels of inflation. (…) Our digital operation in this country is not active in other lines of non-life business or in alternative channels that allow us to mitigate auto losses.“said the chief financial officer, Fernando Mata, on the call.
The company had already posted a loss of $81 million on its auto insurance business last year in the United States, where car and spare parts prices were rising faster than insurance premiums.
Mapfre also said it would pay a 2024 gross interim dividend of US$0.070 per share on November 29, 8% more than the dividend from a year before.
