Mapfre profits hit by COVID-19 claims, heavy nat cat and economic contraction

Re/insurer Mapfre's revenues and earnings in the first nine months of 2020 were dragged down by the influx of claims related to COVID-19, elevated nat cat losses and currency depreciation across many of the main countries in which it operates. Spain, however, contributed the most to the group's results, recording a profit of €328 million.

Mapfre's revenue for the nine month period dropped to €19.1 billion, an 11.9 percent decrease compared to the same period of the previous year, while premiums dropped by the same proportion (down 11.9 percent) to €15.6 billion.

The re/insurer's earnings came in at €450 million, a 2.7 percent decline compared to the first nine months of 2019. The earnings were impacted by losses stemming from the pandemic, earthquakes in Puerto Rico, and the typhoon in Japan.

Mapfre's combined ratio improved by more than one percentage point to 95.2 percent.

The group's main insurance unit saw its earnings rising by 7.5 percent to €610 million, with a combined ratio of 93 percent. However, the unit's premiums during the first nine months amounted to €12.7 billion, 15 percent lower than the previous year.

The reinsurance business line was the most affected by claims related to COVID-19, with an attributable net impact €57 million. The unit reported premiums of €3.2 billion, down 3 percent, and a negative result of €26 million.

Spain remains the largest contributor to Mapfre Re's Group results, recording profits of €328 million in the first nine months of 2020.