Revenue June 2018
MAPFRE consolidated revenue reached 14.1 billion euros, with a reduction of 8.7%, mainly due to the depreciation of the main currencies of the countries where MAPFRE operates, and the fall in financial returns.
Premiums reached 12 billion euros, with a decline of 8.4%, due to the effect of currency depreciation and discreet development of premium issuing in Brazil, United States, Turkey, Colombia and Chile. At constant exchange rates, premium variation would be -2.3%.
Revenue from investments reached 1.3 billion euros, below the previous period, due to the recurrent low-interest rate environment in Europe and the fall in interest rates in Brazil and other countries in LATAM, as well as lower financial gains. The absence of gains from the sale of real estate in 2018 is also relevant.
Premiums June 2018
Non-Life premiums fell by 9.6%, while Life premiums receded 4.2%. By Non-Life business type, Automobile is the most important line, with 3.6 billion euros in premiums. General P&C holds second place, with 3 billion euros and Health and Accidents is in third place with 926 million euros in premiums. At a constant exchange rate, the variation in premiums would be -3.4% in Non-Life and +1.8% in Life.
Combined ratio June 2018
The improvement in the combined ratio is based on an excellent loss experience in Spain and MAPFRE RE, improved loss experience in LATAM NORTH and SOUTH, and improved loss experience in the GLOBAL RISKS business unit, which was very affected last year by claims with a high level of intensity. This favorable development limits the effect coming from the storms on the East coast of the United States in the first quarter of the year.
Net result June 2018
The attributable result reached 385.7 million euros, decreasing by -7.1%, primarily as a result of the following events occurring in the first half of 2018:
- The fall in net financial income, due mainly to the decrease in interest rates in Brazil and other LATAM countries, as well as the low-interest rate environment in Europe.
- The absence of atypical operations with relevant contributions to earnings for the period. It is important to point out that in the Life business from the previous period, non-technical revenue included the cancellation of a provision for contingent payments in the bancassurance channel in Spain totaling 27.2 million euros, net of taxes. Additionally, the sale of real estate on calle Luchana in Madrid contributed a 29.0 million net profit in 2017.
- Expenses from the restructuring operations in Brazil and the United States.
MAPFRE participates in the VIII edition of the international forum, Spain Investors Day. The event was held in Madrid and attended by large, listed Spanish companies, important members of the Spanish Government and international investors.
MAPFRE has converted its 1 billion euro syndicated credit line into a sustainable loan, thereby becoming the first insurance company in the world to execute a transaction of this nature, strengthening its commitment to sustainability and corporate social responsibility.
MAPFRE and Swiss Life have agreed to establish a real estate co-investment vehicle that will invest in prime office locations in the major French cities and will be managed by Swiss Life Asset Managers, Real estate France.
The rating agency Standard & Poor’s has raised MAPFRE’s rating Outlook from stable to positive, as a result of the expectations for improvements in business in Brazil, Spain and MAPFRE RE.
MAPFRE and the French asset management boutique, La Financière Responsable (LFR), have presented in Paris their collaboration agreement, with which MAPFRE takes a 25% stake in LFR, as part of its commitment to a policy of responsible investment.
MAPFRE has reached an agreement with the French company Puy du Fou to become a shareholder in the project to build a theme park based on the history of Spain, in the province of Toledo.
MAPFRE and Banco Do Brasil have reached full agreement to update their strategic Alliance in the insurance business, which gave rise to BB MAPFRE, incorporated in May 2010, and which over the course of the last eight years has consolidated itself as one of the leading insurance groups in Brasil.