Mapfre obtained a profit of 691 million euros in 2023, 7.7% more than in 2022, thanks to record income in insurance premiums and despite facing a cost 115 million euros higher than the previous year in meteorological accidents in Europe.
“There has been a great increase in the frequency of weather events in Spain, Italy and other countries,” said Mapfre’s financial director, Fernando Mata, at the press conference presenting results. “The cumulative impact has a very significant amount.”
The president of the group, Antonio Huertas, warned that “climate events of medium intensity are increasingly frequent” and that “in Europe only a third of the damages are covered by insurance.” To “expand coverage”, Mapfre requests a review of the conditions of applicability.
The problem also affects the countryside and farmers, who “are crying out because they also have a shortage of water.” Huertas was also in favor of a review of the agricultural insurance model.
The insurance group recovered last year after the breakdown of its strategic alliance with Bankia and is seeking new agreements with other entities. An arbitration determined in the middle of last year that CaixaBank would have to compensate him with 53 million euros and, of that amount, according to the financial accounts published today, Mapfre has already paid 46 million.
The president of Mapfre announced that “one of the insurer’s objectives will be to expand alliances with banks”, such as those it already develops with Santander and Bankinter.
Huertas also announced that, after the improvement in profit, the distribution of dividends will amount to 462 million euros. “We hope this decision encourages investors,” he said.
Huertas also announced that Mapfre will present a new strategic plan at the general shareholders meeting on March 15. “We are reflecting on Mapfre’s current plan and potential for its development in the coming years,” he indicated, after recalling that the previous strategy was designed in 2022, when the Russian invasion of Ukraine skyrocketed energy and transportation costs. inflation.
The group’s total income increased by 9.2%, to 32,239 million euros, after policyholder premiums registered an increase of 9.7%, to 26,917 million, the highest figure achieved to date by the group.
This good evolution allowed Mapfre to more than offset the cost of the claims. In addition to the higher expense due to atmospheric events in Europe, Mapfre suffered an impact of 159 million euros from Hurricane Otis in Mexico and the earthquake in Turkey. There was also an expense of 113 million due to the drought in the Paraná River.
Mapfre’s profits would have been higher, at 767 million, if the group had not had to face a deterioration of 75 million for its goodwill in the United States due to the difficulties in the country.
“In North America, balancing efforts are costing. Auto insurance is going through a complex situation,” Huertas warned.
Automotive insurance generated income of 6,109 million euros, 3.3% more, but expenses have grown strongly due to the higher costs of claims and the increase in accidents after the pandemic.
“In automobiles we continue to focus on the not so desired consequences of inflation,” said Huertas. “We are concerned about the automobile business” and “we have to maintain adequate rates.”
General insurance is the one that contributes the most income, 8,491 million, 10.9% more, ahead of automotive and life insurance, which generates 5,198 million euros, 14.6% more.
Despite hyperinflation in Argentina or Venezuela, Latin America is the region that generates the most profit, with 373 million euros, 62% more, encouraged above all by Brazil. The Iberia region, on the other hand, is the one that has grown the most in premiums, 15% more.
