In the first nine months of the year, Mapfre, of which Middlesea Insurance is a member, achieved a net attributable profit of €765.6 million, 8.7 per cent more than in the same period in 2010, due to favourable business development in Spain, especially in the motor, home and life assurance sectors, and the excellent performance of the international business. Likewise, the net profits of the Group’s insurance business increased by 6.1 per cent to €857.3 million. These results, achieved in a challenging economic environment, confirm the strength of Mapfre’s business model.
Consolidated revenues (€17,563.9 million) were 12.1 per cent higher those for the first nine months of the preceding year. Consolidated direct insurance and accepted reinsurance premiums amounted to €14,659.8 million, an increase of 13.9 per cent.
In these first nine months of the year, Mapfre’s equity increased by nearly €1,500 million and debt levels were reduced by €365 million.
The positive trend in the Group’s direct insurance loss experience has mitigated the impact of the natural catastrophes in Asia, the USA, Australia and New Zealand. In line with this favourable development, the combined ratio in Spain, which recorded a reduction of 2.5 percentage points compared to the same period last year, should be underscored.
Business development
In Spain, total premiums from direct insurance and accepted reinsurance amounted to €6,059.1 million, 6.1 per cent more than in the first nine months of 2010.
Premiums at Mapfre Familiar amounted to €3,148.2 million, a figure equivalent to that recorded in 2010. Of note is the growth of motor insurance (+0.2 per cent compared to the 2.1 per cent decline in the sector) and home insurance (+9 per cent, more than double the sector’s growth).
Life assurance premiums reached €2,389.3 million (+17.8 per cent) due to the excellent development of the individual protection business, the good performance of the life-savings segment through the agents’ channel and the consolidation of the operations of CatalunyaCaixa. Technical reserves increased to €17,866.5 million.
Premiums from commercial insurance stood at €521.6 million (-1.4 per cent), a figure that reflects an improvement in trend with respect to the first six months of the year, despite a contraction in the TPL and engineering lines, as a result of the low level of activity in the construction sector.
International business, which represents 61.4 per cent of the group’s total premiums, has grown by 19.4 per cent to reach €9,611.8 million.
Premiums at Mapfre America exceeded €4,907 million, a 30.7 per cent rise compared to the third quarter of 2010, with noteworthy growth in Brazil, Chile and Colombia. The development of premiums reflects the consolidation of the business and the start of joint operations with Banco do Brasil, as well as the increase in the motor, property and life assurance sectors, as a result of organic growth and several distribution agreements in the region.
Premiums at Mapfre Internacional (the USA, the Philippines, Malta, Portugal and Turkey) reached €1,437.6 million, a figure 0.2 per cent higher than that for the same period of 2010, despite the appreciation of the euro against the US dollar and the Turkish lira. Worth mentioning is the premiums volume in the USA (€1,071.7 million, a 5.8 per cent increase in local currency) and Turkey (€210.4 million, 24 per cent higher in local currency).
Premiums at Mapfre Global Risks and its subsidiary Mapfre Caución y Crédito increased by 11.5 per cent to €813.2 million, with special growth in Latin America.
Accepted premiums at Mapfre Re reached €2,037 million, a rise of 11.3 per cent. The favourable business development reflects the good performance of the renewal campaigns and new business volumes.
Revenues from Mapfre Asistencia (premiums and income from the sale of services) increased 29 per cent, to €528.4 million.