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MAPFRE registers net earnings of €529 million in 2018

Antonio Heurtas
In 2018, MAPFRE generated an operating result of €702 million, 0.3% over the previous year. It is important to note that at the end of last year, the company strengthened its balance sheet by allocating €173 million to a partial impairment of goodwill for operations in the United States, Italy and Indonesia. After allowing for this allocation, net earnings for the year were €529 million, 24.5% lower than that recorded in 2017.
The fall in financial income is mainly due to low interest rates, depreciation of currencies, and the cost of catastrophic events, which had an impact of €97 million on the reinsurance business. 
The total Group revenues were €26.6 billion, a fall of 5% due to currency depreciation in the main countries in which MAPFRE operates, namely the US, Brazil, Mexico and Turkey. Premiums stood at just over €22.54 billion (-4%), also influenced by the effect of currency depreciation. The impact of currency depreciation accounted for €1.44 billion. 
Premiums for the EURASIA Regional Area (which groups together operations in Europe –except Spain and Portugal, the Middle East, Africa and Asia) ended the year at €1.77 billion (-5.6% ). Malta contributed €390 million, representing the highest growth in this region, with an increase of 11%. In Malta, MAPFRE is represented by MAPFRE Middlesea and MAPFRE MSV Life. Turkey produced €486 million (-25.7%), heavily influenced by the depreciation of the Turkish lira. Italy increased business by 0.6% to €474 million while in Germany, growth was 5.3%, up to €327 million.
At the end of 2018, the Group’s combined ratio stood at 97.6%, half a percentage point better than 2017. Equity stood at €9.2 billion, while shareholders' equity amounted to just under €8 billion, with total assets at €67.29 billion.
The Group's investments reached €49.27 billion at the end of 2018, with 56% corresponding to sovereign debt and 18.1% to corporate fixed income. The rest was invested in equities, cash and real estate.  
At the end of September 2018, the Solvency II ratio stood at 207.9%, compared with 201.7% in June, with 88% high-quality capital. It is important to note that the solvency ratio remains both robust and stable, thanks to a high level of diversification and stringent investment and management policies.
The Reinsurance Unit registered premiums of €3.79 billion for 2018, 10.3% less than the previous years, mostly because most of this unit’s business comes from non-European countries, which experience sharp currency depreciations. 
MAPFRE also continues to make progress in its commitment to diversity and equality policies, with 40.8% of management job positions throughout the Group held by women. In addition, 2.5% of the workforce comprises people with a disability, exceeding the objective set. 
MAPFRE Middlesea p.l.c. (C-5553) is authorised by the Malta Financial Services Authority to carry on both Long Term and General Business under the Insurance Business Act, Cap 403 of the Laws of Malta.
MAPFRE MSV Life p.l.c. is authorised by the Malta Financial Services Authority to carry on Long Term Business under the Insurance Business Act, Cap 403 of the Laws of Malta.
Both entities are regulated by MFSA.
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