Mapfre reported a remarkable 69.5% increase in net profit in the first quarter of the year, reaching 216.3 million euros. This growth was driven by several factors including a doubling of profits in the reinsurance sector, totaling 67 million euros, as well as expansion in Spain and Brazil. In addition to this, premiums also saw a 4.6% increase in the first three months, totaling 8,142 million euros, with Iberia and Latin America experiencing significant growth.
Mapfre’s financial performance in the first quarter was impressive across all segments with non-life premiums increasing by 6.9%. The reinsurance sector saw the largest increase at 9.3%, while General Insurance and Auto premiums also rose, and Health and Accident premiums grew by 6%. Despite these positive numbers, however, the automobile segment is still facing challenges with a combined ratio above 100%.
Despite geopolitical uncertainties, Mapfre is optimistic about the remainder of the year and is focused on improving profitability in key segments such as the automobile sector. Measures such as rate increases and policy cancelations are being implemented to ensure profitability in this segment. The company anticipates positive results by 2024. Additionally, Mapfre has approved the distribution of a dividend to shareholders and is set to pay 0.09 euros per share on May 24. Shareholders must hold company shares before the 22nd to be eligible for the dividend.
In conclusion, Mapfre’s financial performance in Q1 showed positive growth and strategic focus on improving profitability in key segments such as automotive insurance. Despite challenges faced by this segment, Mapfre remains optimistic about its future prospects and continues to take measures to improve profitability.
