Results December 2018
Due to the moderation of medium and long-term expectations for profit growth in our insurance operations in the United States, Italy and Indonesia, there was an extraordinary goodwill writedown of 173.5 million euros. Excluding this effect, net result would have amounted to 702.3 million euros, which represents an increase of 0.3 per cent.
Revenue December 2018
At constant exchange rates, revenue would have grown 0.8 percent.
Premiums December 2018
Issuing in Spain includes a group Life policy for the amount of 282 million euros.
Eliminating the effect of the PEMEX policy that was issued in the first half of 2017 and is not recurrent as it is issued every two years, and the effect of the group Life policy issued in 2018, the decrease in premiums would stand at 3.2 percent.
Non-Life premiums fell by 6 percent, while Life premiums grew 2.8 percent. By Non-Life business type, Automobile is the most important line, with 6.9 billion euros in premiums. General P&C holds second place, with 5.6 billion euros, and Health and Accidents is in third place with 1.3 billion euros.
At constant exchange rates, premiums would have grown 2.1 percent – 0.2 percent in Non-Life and 8.5 percent in Life. Eliminating the effect of the PEMEX policy and the group Life policy, premiums would have grown 3 percent.
Combined ratio December 2018
Net result December 2018
The attributable result reached 528.9 million euros, a reduction of 24.5 percent. This result includes:
- An extraordinary goodwill writedown of 173.5 million euros
- The cost of certain catastrophic events that have impacted MAPFRE RE
- The fall in net financial income
- The costs coming from the reorganization in the US and the writedown of tax receivables in Global Risks
- The restatement for hyperinflation in Argentina
- The depreciation of currencies where MAPFRE operates.
Balance sheet
Balance sheet December 2018
Total assets reached 67.3 billion euros and fell 0.4 percent compared to the close of the previous year. The most relevant changes correspond to variations in Financial Investments, the increase in Technical Provisions and the reduction in Equity. This reduction is a result of the decrease in both non-controlling interests and in shareholders’ equity, in an environment of falls, primarily in European equity markets, and of the impact of negative currency conversion differences.
In September, MAPFRE issued subordinated debt amounting to 500 million euros, which was placed among over 80 investors in various countries, and with a coupon of 4.125 percent.
Assets under management
Solvency II
- The Solvency II ratio stood at 208 percent to September 2018, compared to 200 percent at the close of 2017. The ratio maintained great solidity and stability, backed by high levels of diversification and strict investment and ALM policies.
- High quality capital base: 88% of eligible own funds are Tier 1.
- “Fully loaded” Solvency II ratio: 188.6% (excluding impact of transitional measures on technical provisions and equity).
Strategic Plan 2016-2018
Client orientation
Clients have always been the focal point of our efforts each and every day. Our goal in this three-year period is to generate profound insight into our clients, and to transform our processes and offering in order to address their current and future needs, as well as enhancing the client experience in all markets, and with all products.
Excellence in technical and operational management
MAPFRE is aiming to bolster those areas that have traditionally formed the basis of its insurance activities. To achieve this we will optimize each product, improving services to ensure that we are more competitive and deliver on performance and profitability targets.
Digital transformation
The objective is to improve our capacity to interact with clients, with simpler procedures that empower clients to manage their own products. We will optimize tools in order to provide more services, enhance quality and generate greater value for clients.
Culture and human talent
A culture of hard work, productivity and efficiency has always been a hallmark of MAPFRE. We will introduce new policies to nurture talent, leadership and teamwork, and to capitalize on the full potential of our personnel in strategic areas.
Relevant events
MAPFRE, participates in the financial summit, Spain Investors Day
January 2018
MAPFRE participates in the VIII edition of the international forum, Spain Investors Day. The event was held in Madrid and attended by large, listed Spanish companies, important members of the Spanish Government and international investors
MAPFRE converts its 1 billion euro syndicated credit line into a sustainable loan
February 2018
MAPFRE has converted its 1 billion euro syndicated credit line into a sustainable loan, thereby becoming the first insurance company in the world to execute a transaction of this nature, strengthening its commitment to sustainability and corporate social responsibility.
MAPFRE and Swiss Life to set up a co-investment solution for prime office locations
March 2018
MAPFRE and Swiss Life have agreed to establish a real estate co-investment vehicle that will invest in prime office locations in the major French cities and will be managed by Swiss Life Asset Managers, Real estate France.
Standard & Poor’s raises MAPFRE’s rating outlook from stable to positive
March 2018
The rating agency Standard & Poor’s has raised MAPFRE’s rating Outlook from stable to positive, as a result of the expectations for improvements in business in Brazil, Spain and MAPFRE RE.
MAPFRE takes a 25% stake in La Financière Responsable
MAPFRE and the French asset management boutique, La Financière Responsable (LFR), have presented in Paris their collaboration agreement, with which MAPFRE takes a 25% stake in LFR, as part of its commitment to a policy of responsible investment.
Agreement with Puy du Fou for a theme park project in Toledo
June 2018
MAPFRE has reached an agreement with the French company Puy du Fou to become a shareholder in the project to build a theme park based on the history of Spain, in the province of Toledo.
Agreement to update the strategic alliance with Banco do Brasil
June 2018
MAPFRE and Banco Do Brasil have reached full agreement to update their strategic Alliance in the insurance business, which gave rise to BB MAPFRE, incorporated in May 2010, and which over the course of the last eight years has consolidated itself as one of the leading insurance groups in Brasil.
MAPFRE, one of the top ten insurance companies in Europe in 2017
July 2018
MAPFRE is among the 10 main insurance companies in Europe, according to the 2017 edition of the annual ranking prepared by MAPFRE’s Economic Research and published by Fundación MAPFRE.
MAPFRE, included among the most sustainable companies in the world, according to the Dow Jones Sustainability World Index
September 2018
MAPFRE is included among the 15 Spanish companies present on the Dow Jones Sustainability World Index, which monitors the performance of companies focused on sustainability and social responsibility.
MAPFRE signs a strategic agreement with Amazon in Spain
October 2018
MAPFRE and Amazon signed the first alliance in Spain between an insurance company and the e-commerce multinational. The agreement could be extended to the rest of the international markets where MAPFRE is present.
MAPFRE, one of the top ten insurance companies in Europe in 2017
November 2018
MAPFRE unveiled insur_space, its new insurtech startup accelerator, which has been created with the aim of developing new solutions to meet the needs of the different types of clients.
MAPFRE strengthens its bancassurance agreement with Bankia
December 2018
MAPFRE and Bankia have reached an agreement to reorganize their bancassurance alliance. MAPFRE VIDA will acquire 51% of Caja Granada Vida and Caja Murcia Vida y Pensiones, for 110 million euros.
Dividends and Shareholders
MAPFRE continues creating value for its shareholders
The Board of Directors proposed a final dividend for 2018 of 0.085 euros gross per share. With this, the total dividend paid against 2018 earnings reaches 0.145 euros gross per share, which implies a payout ratio of 84.4 percent.
Share Performance
MAPFRE – IBEX 35 – Stoxx Insurance
Share Price evolution: January 1, 2018 – December 31, 2018
