Mapfre profits jump 45% but combined ratio deteriorates as Covid continues to bite

Spain-based global re/insurer  Mapfre reported revenue and premium growth overall in the financial year 2021, with good performance of the reinsurance business and solid results in the Iberia and North America regional areas, but its combined ratio fared less well due to the influx of claims related to COVID-19.

Mapfre posted revenues of just over €27 billion for 2021, which represents a 72% increase over the previous year. Total written and accepted premiums grew 8.2% year on year to reach €22 billion, and net profit for 2021 amounted to €765 million, showing a significant increase of 45.3% on the previous year's €526.5 million.

In the insurance unit, premiums amounted to €18.2 billion at the end of 2021, 8.9% higher than the previous year, while profits were €786 million, similar to the amount achieved in 2020.

Premiums at Mapfre Re, which includes the reinsurance business and the large risks business, grew by 10.3% in 2021 to just under €6.3 billion. Attributable profits were €152 million, nine times higher than the previous year.

However, the combined ratio worsened by 2.7 percentage points to 97.5%, due to the increase in losses, the easing of mobility restrictions, and by the high COVID claim levels  affecting its Latin American business, especially in the life protection and health lines. In 2021, the re/insurer faced COVID-related claims totaling more than €460 million.

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