Profits at Mapfre plummet in H1 2020 as COVID-19 claims bite

Spanish re/insurer Mapfre's first half 2020 results were dragged down by pandemic-related claims and the economic downturn caused by the COVID-19 crisis, particularly in the reinsurance business line.

The company's gross written premiums declined to €10.982 billion H1 2020, compared with €12.528 billion in the same period last year.

Mapfre's revenue for the first six months dropped to €13.28 billion, an 11.8 percent decline compared to €15.05 billion in H1 2019.

The group's combined ratio at the end of June was 96.7 percent (+0.8 percentage points compared to a year ago).

The cost of reported claims related to COVID-19 exceeded €153 million in the first half.

The reinsurance business line was the most affected by claims related to COVID-19, with an attributable net impact €57 million, of which €50 million derive from business interruption coverage and the remainder from the credit line.