Mapfre will increase its profit by 7.7%, to 692 million, and pay additional dividends

Mapfre Received The attributed net profit in 2023 was €692 million.This is 7.7% more than in 2022 and this result includes a deterioration in goodwill in the US of 75 million euros, as reported this Wednesday by the National Securities Market Commission (CNMV). Without this impact, profits would have risen to €767 million, up 19.4% from 2022. In addition, the insurer explained that the profit of 692 million euros includes the impact of 159 million euros from two catastrophic events such as the earthquake in Turkey and Hurricane Otis in Mexico, and remember that in 2022 there was a drought on the Paraná River, which caused 113 million people were affected. Likewise, it highlighted the higher frequency of weather events in Europe, with a total impact of more than 115 million more people than in 2022.

Similarly, net income includes a net gain of 46.5 million as a result of arbitrage due to the breakdown of the alliance with Bankia and a 75 million impairment in goodwill of US insurance operations, which, however, “had no impact” on cash generation flow or on the solvency or ability to pay dividends of the insurance group.

Finally, Mapfre notes that hyperinflation in Venezuela, Argentina and Turkey had a negative impact of 47 million euros, compared to 41 million recorded in 2022.

profitability reached 9% at the end of 2023, although excluding “unique” impacts it would rise to 9.9%.

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On the other hand, the insurer indicates that there was revenue growth by 9.2%, to 32,239 million euroswhich “consolidates” the trend of recent quarters and reflects “significant” growth in business volumes as well as improved financial earnings.

Premiums increased by 9.7%, without the corresponding influence of exchange rates. This growth reflects an overall improvement in the business situation, with growth of 8.4% in the life insurance sector and 14.6% in the insurance sector. In addition, Iberian, Latin American and reinsurance businesses made positive contributions.

As for the Non-Life business, premiums for the year increased by almost 1,600 million euros to 20,961 million, with growth of 10.9% in general insurance, 9.5% in health and accident insurance and 3.3% in cars. Thus, the aggregate ratio was 97.2%, a decrease of 0.8 percentage points, although the volatility and dispersion of previous periods remained.

For the Life business, premiums rose to almost 760 million thanks to the savings business in Spain, although the result reflected “good technical performance” in all regions, as well as “strong financial performance”, especially in Latin America. The composite life risk ratio is at an excellent level (82.7%) with an improvement of 0.4 percentage points over the year.

investment portfolio increased to 43.952 million euros, up 6.2%, driven by exposure to public and private fixed income. Net realized capital gains contributed €91 million to the result, compared to €100.4 million in 2022.

The group’s own funds on homogenized local criteria reached 8.071 million, an increase of 782 million, or in other words an increase of 10.7%. Unrealized capital gains on the portfolio of financial assets available for sale amounted to €566 million during the year, while exchange rate differences remained stable.

These results prompted the board of directors to agree to propose to the general meeting additional dividend accrued for the 2023 financial year of €0.09 per share, an increase of 5.9% compared to the previous year. In addition, Mapfre’s board of directors approved the appointment of José Miguel Alcolea as CEO of the corporate law department, effective April 1, replacing Angel Dávila, who is retiring after 32 years with the insurance company.