MAPFRE’s Chairman and CEO, Mr. Antonio Huertas, presented the Group’s results, which show a rise in attributable profit of 18.7% to €790.5 million, thanks to the geographical diversification of the business, which underpins the company’s solidity. MAPFRE is represented in Malta by Middlesea Insurance, which is a member of the MAPFRE Group.
During 2013, revenues exceeded €25.9 billion, a rise of 2.3 percent on 2012, boosted by the international division with premiums growing 1.2 percent to €21.8 billion. Shareholders’ equity stood at €7.8 billion, an increase of 0.3%, and total managed assets amounted to €66.0 billion, representing a 2.2% rise over 2012. The year was characterized by the appreciation of the euro against all other currencies. On a constant currency basis, premiums and earnings would have grown by 8.1 percent and 26.3 percent respectively.
Mr Huertas described these results as “very positive results, given the current domestic and international environments in which they have been achieved, and reflect not only MAFPRE’s strength, but more importantly the Group’s capacity to adapt accordingly in all the markets in which it operates. ”He went on to add that “MAPFRE is currently in the best position to lead the economic recovery”.
The Spain and Portugal Insurance Division, which contributes 29.1% of total premium income, recorded revenues of €6.8 billion. In Spain, where MAPFRE is the outright market leader, premiums rose to €6.7 billion. Non-Life premiums in Spain exceeded €4.2 billion in an environment marked by both a significant contraction in the insurance market and intense competitive pressure.
Life premiums in Spain totalled €2.5 billion. Worthy of mention is the robust performance from mutual funds and managed portfolios, which grew by 19% to €3.0 billion, and from pension funds, which amounted to €5.4 billion a 5.2% percent increase over 2012. Total managed savings stood at €27.9 billion, showing an increase of 6.2%, double the increase recorded by the sector. Additionally, the value of investments has risen by almost €1.4 billion, due to the appreciation of the sovereign debt portfolio, which in turn resulted in an increase in equity of €285 million.
The expense ratio in Spain fell in 2013, despite a drop in premiums, thanks to the concentrated effort to reduce internal costs, producing savings of €48 million.
The International Insurance Division, which in 2013 encompassed insurance activities outside Spain and now represents 48.5% of the Group’s total premiums, recorded revenues of €11.4 billion, a 5.4% rise. In Latin America, the Group generated premium volume of€8.9 billion, a 2.7% increase. Brazil, which accounts for 56.7% of MAPFRE’s business in Latin America, saw premium income rise by 20.4% in local currency terms, to €5.0 billion. In all other countries where the Group is active in insurance –the USA, the Philippines, Malta, Puerto Rico and Turkey– premiums for 2013 totalled €2.5 billion, 15.9% more than in the previous year.
The Global Businesses Division, which contributes 22.4% of the Group’s premiums and in 2013, encompassed its Reinsurance, Global Risks and Assistance businesses, posted €5.5 billion in premium and operating revenues, a 12.6% increase on 2012. Accepted reinsurance premiums totalled €3.3 billion, a 14.4% increase. MAPFRE Global Risks enhanced its premium income by 0.3%, generating €1.1 billion.
Revenues in the Assistance business, (premiums and income generated from services), were 21.8% higher, at €1.1 billion. These results pertain to the Group’s structure in the year 2013. As has been previously announced, on January 1, 2014, MAPFRE adopted a new corporate structure to enable the Group to adapt to its scale and position as the most trusted global insurance company.
The Group raised its total dividend against the 2013 results by 18% to 13 euro cents per share.
MAPFRE’s Governing Bodies have approved the appointments of Mr. Antonio Huertas as Chairman of FUNDACIÓN MAPFRE and that of Mr. Antonio Nuñez as First Vice Chairman of the same institution.