Spanish insurer Mapfre’s H1 profit falls 6% on auto woes, Turkey quake
4402 Mins Read
July 28 (Reuters) – Spanish insurer Mapfre reported a 6% drop in its first-half net profit on Friday, citing challenges in the inflation-hit auto sector and damages caused by the earthquake that devastated Turkey in February.
Net profit totalled 317 million euros ($347.5 million) for January-June, down from 337.6 million euros a year earlier, while the group’s premiums grew 14.7% to 14.35 billion euros.
Mapfre updated its estimates on losses from the Turkey earthquake, putting them at 99 million euros for Mapfre Re as of the end of June, while the local insurer suffered losses of 5 million euros.
No further relevant losses are expected to be reported in the coming months, the company said.In the first six months of 2023, the group’s revenues amounted to 17.03 billion euros, up 15% from a year earlier.
The combined ratio at the end of June stood at 97.1%, a decrease of 1.3 percentage points.The combined ratio in the auto business reached 106.2%, improving slightly compared to March 2023. In some regions, tariff increases and management efficiencies were starting to translate into lower auto combined ratios.
Net profit from the Latin America region soared 70.4% year-on-year to 192.7 million euros, maintaining the region’s position as the main contributor to Mapfre’s profit.Brazil continued to show solid growth of more than 171%, as premiums amounted to 2.5 billion euros, up 9.4% from last year.
The Iberia region saw premiums growing by more than 20%, reaching a net result of 122.7 million euros.
