In the first half of the year, MAPFRE’s revenues amounted to €13,140.9 million, a 13 per cent increase when compared to the same period of the previous year. This increase was driven by the sustained growth of the international business. MAPFRE is the majority shareholder in Middlesea Insurance plc with a 54.56 per cent shareholding.
The Group’s premiums exceeded €11,202 million, a 15.2 per cent increase. The Non-Life businesses (€8,191.5 million) grew 12.9 per cent and Life Assurance businesses by 22 per cent (€3,010.6 million) in the period.
MAPFRE’s attributable result in the first half of 2012 amounted to €434.2 million, a 20.1 per cent decrease mainly due to the provisions and impairments carried out as a result of the market crisis. The market crisis has led to the appropriation of reserves amounting to €120.7 million gross, due to the impairment of the shareholdings in BANKIA. The recurring result, however, grew by 10.2 per cent, to €510.1 million, thus reflecting the Group’s operating strength, which contains the effects of the financial crisis.
Moreover, the favourable development of the Group’s combined ratio should be highlighted. This decreased by nearly one percentage point, to 95.6 per cent, thanks to the decline in the loss experience stemming from the lower impact of natural catastrophes and a rigorous technical approach to underwriting.
The International Insurance Division, which comprises the insurance activities abroad and contributes 45.3 per cent of the Group’s total premiums, reached €5,416 million (+39.3 per cent). MAPFRE saw a strong growth of 46.3 per cent in Latin America, and premiums reached €1,118.4 million, a 17.6 per cent rise in all the other countries where the Group engages in insurance operations – the USA, the Philippines, Portugal, Turkey as well as Malta (through Middlesea Insurance plc).
Within the global business division, which includes Reinsurance, Global Risks and Assistance the premiums amounted to €2,548 million, a 14.3 per cent increase. This segment accounts for 20.6 per cent of total premiums. Reinsurance contributed €1,501.9 million, Global Risks, €611.7 million, and Assistance €435.2million.
The Domestic Insurance Division, which contributes 34.1 per cent of the Group’s total premiums, exceeded €4,068 million in premiums, a decrease of 5.9 per cent, as a result of the decline in demand in the Spanish market. Non-Life premiums exceeded €2,622 million, a 3.9 per cent decrease. There was a positive performance in the commercial insurance sector, which saw an increase of 3.7 per cent in premiums and home insurance, where premiums increased by 2.6 per cent. In the motor insurance business, the Group increased its market share to 20.7 per cent and although there was a decline of 3.9 per cent, it is less than the 4.7 per cent contraction for the sector. In Spain, Life Assurance premiums reached €1,445 million (-9.3 per cent), in an environment with lower disposable income and strong competition from banks. Technical reserves stood at €17,556 million, and managed savings amounted to €24,899.9 million.