Mapfre Re profit up on declining Q1 group results

Spain-based Mapfre’s reinsurance unit Mapfre Re has grown net earnings by 22 percent year on year to €62.7 million in the first quarter of 2018 despite currency depreciations pushing premium lower.

The combined ratio in the reinsurance unit improved slightly to 91.1 percent from 91.4 percent over the period. At the same time, gross written premium declined 3.4 percent year over year to €1.13 billion due to currency depreciation in countries outside Europe where Mapfre Re has significant operations. In addition, lower accepted premiums in life were driven by the cancellation of a contract with a European ceding company.

Overall, Mapfre Group’s net earnings declined 9.3 percent year on year to €187 million in the first quarter of 2018. The group’s gross written premium also fell 7.2 percent year on year to €6.20 billion over the period. Mapfre’s financial performance was significantly impacted by the depreciation of currencies in the US, Brazil and Turkey, which during the period lost between 13 and 16 percent of their value. In addition, low interest rates led to a drop in financial income, the company stated.