April 10, 2021

Mapfre earns 24.5% less for provisions and the currency effect | Economy

Mapfre earns 24.5% less for provisions and the currency effect | Economy



The insurer Mapfre earned 528.9 million euros in 2018, 24.5% less than the previous year, due to a decrease in revenues of 5%, to 26,589.7 million euros, and the deterioration of assets in the US, Italy and Indonesia. Mapfre's accounts have also been weighed down by the depreciation of some currencies, which have subtracted 17 million from the result, as reported by the company in a relevant event referred to the CNMV.

According to the company, revenues have been impacted by several factors, such as low interest rates, the depreciation of some currencies (the Brazilian real, the Argentine peso or the dollar, among others), the cost of catastrophic events ( hurricanes and storms), which has an impact of 97 million; or the restatement of accounts in Argentina due to hyperinflation, which have an impact of 18 million. In addition, provisiona 173 million to strengthen the balance due to the "partial impairment of goodwill of insurance operations in the United States, Italy and Indonesia" to adapt to the "new circumstances of the markets."

Thus, revenues remained at 26,590 million, 5% less. As for the main business, for premiums, income fell by 4% to 22,537 million euros. According to the company, the amount of premiums is weighed by the currency effect of 1,439 million, so the business would have grown 2.1% without that effect.

Mapfre highlights that the insurance business has grown especially in Spain, with premiums of 7.524 million, 10% more. Of these, 2,283 million, 2.2% more, corresponded to car insurance (5.7 million insured vehicles, 132,000 more). The general insurance business also grew by 13.5% to 1,877 million, and the health and accident business grew by 5.4% to 578 million, and life insurance by 16.4% to 2,627 million. In any case, profits in Spain and Portugal fall by 6% as extraordinary.

However, this growth in Iberia does not compensate for the drop in business in Latin America, from 14.1% to 6.887 million, and the rest of the world, from 4.7% to 4.191 million.

Finally, the board of directors will propose to the board a complementary dividend charged to the results of 2018 of 0.085 euros per share, so that the total dividend for the year will amount to 0.145 euros per share. In total, Mapfre will allocate a total of 477 million euros to pay dividends, the same amount as the previous year.

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