Mapfre results driven by strong growth
Spanish insurer Mapfre has posted a solid set of results for 2014, as it experienced growth in most areas, in particular the Asia-Pacific region and parts of Latin America.
Its net earnings grew 6.9 percent in 2014 to €845 million, while its earnings increased 1.8 percent to €26.4 billion in 2014.
Mapfre’s premiums grew 2.6 percent, to around €22.4 billion. On a constant currency basis, premiums and attributable results would have grown 7.7 percent and 11.8 percent respectively.
Its insurance unit generated premiums of €18.9 billion, while the reinsurance unit reported premiums of €3.3 billion.
Premiums from the Iberia regional area (Spain and Portugal), which represent 31.1 percent of total premiums, stood at €7.5 billion, a figure 1.5 percent higher than that of the preceding year.
Mapfre experienced strong growth in Brazil, with premiums increasing 6.9 percent, or 15.6 percent in local currency terms to €5.6 billion. This was mainly driven by an increase in life and motor business volumes.
The Latin America North regional area also experienced strong growth with an increase in premiums of 11 percent. In particular, Mexico posted strong growth of 10.7 percent stemming from motor, life and health lines. However, premiums in the Latin American South regional area fell by 4 percent.
Mapfre’s Asia Pacific region benefitted from growth in premiums of 16.7 percent to €101 million. China experienced premium growth of 15.8 percent, while the Philippines posted growth of 5.4 percent.
At the end of 2014, the combined ratio stood at 95.7 percent. Mapfre said this was driven by to a significant improvement in the expense ratio in Brazil and in the reinsurance business, in line with the group’s target for 2016.
“These results reflect the success of Mapfre’s global business model. We have grown in all strategic markets and have reinforced our leadership position in Spain, outperforming the sector by two points,” said Antonio Huertas, Mapfre’s chairman and chief executive officer.