MAPFRE RE, the reinsurance arm of Madrid-headquartered insurer MAPFRE, has reported that premiums, which include the reinsurance and Global Risks businesses, are up 7% in the first quarter of 2024, reaching nearly €2.2 billion.
At the same time, the combined ratio improved significantly in the year to 93.8% (-4.9 p.p.), which the firm noted was supported by the recovery of tariffs, especially catastrophic covers.
MAPFRE RE explained that there have been no impacts from relevant catastrophe claims in Q1, compared to the same prior year quarter when there was a relevant earthquake in Turkey.
The reinsurance arm’s financial result also continued to increase its contribution, as net result reached €67.3 million, up a substantial 101.4%.
The reinsurer’s parent, MAPFRE reported that premiums grew 4.6%, surpassing €8.1 billion, while revenue stands at close to €9.4 billion.
The company noted that this advance is supported by the strong growth in General property & casualty (P&C) and Life Protection, as well as in reinsurance, business lines with greater contribution to the result.
The net result, which stands at €216 million, is up almost 70%, based on a number of developments in the quarter, including: the relevant improvement in Non-Life technical profitability, with an almost 3-percentage point reduction in the combined ratio, from both technical measures in underwriting and tariff adjustments, as well as the absence of relevant Cat events, as well as the growing contribution of financial income, which reaches €195 million in the quarter for the Non-Life business (+30.2%).
MAPFRE noted that business in LATAM continues to show strong growth, as it continues to be the Group’s growth engine and largest contributor to earnings. Premiums increased by 9.1% surpassing €2.5 billion, and the result reached €94 million.
As for North America, MAPFRE posted a strong improvement in Q1.
Premiums reached €631 million (+8%), of which the United States contributed close to €555 million (+5.5%).
The NA region also posted a net result of €15.5 million, compared to losses of €9.3 million in the previous year.
