Without this effect, the result would have grown by more than 1.3%, to 540 million
Mapfre registered a net profit of 488 million euros during the first nine months of this year, which represents a decrease of 6.9% compared to the same period of the previous year, as reported by the insurance group this Friday.
Hyperinflation weighs 52 million euros on profit, which, without this effect, would have grown by more than 1.3%, to 540 million euros.
Between January and September, revenues increased by 12.2%, reaching 22,202 million euros, while premiums rose to 18,644 million euros, which represents an increase of 12.1%, with growth in practically all countries in which the group operates and in the main lines of business.
The evolution of premiums on a homogeneous basis, that is, without the effects of the biennial premium in Mexico and the departure of Bankia, and without the boost from foreign exchange, which contribute 5.5 percentage points to growth, would have been 10 .6%, that is, a double-digit increase in the business, according to the company.
By regions, Mapfre has highlighted the contribution of Iberia, with almost 300 million euros, and the "good" result of Latin America, in which Brazil and Peru stand out.
By branches, the company has explained that the increase in the profit of the General Insurance and Life Risk segments, with a loss ratio due to Covid that loses relevance in all countries, has "partially" mitigated the evolution of the automobile branch, affected by the recovery of mobility after Covid and the current inflation scenario.
The group has also emphasized the improvement of the recurring financial result in a context of rising rates, which allows "mitigating the fall in capital gains realized in shares and investment funds".
For its part, Mapfre RE, with its two business units, Reinsurance and Global Risks, achieved a profit of almost 94 million through September despite the catastrophic claims recorded in the year, especially the droughts in the Paraná river basin, which represents a impact of nearly 60 million euros. The total cost of this drought for the group exceeds 105 million.
Hurricane Fiona has also been relevant, with a net cost of 22 million euros due to claims, mainly in Puerto Rico.
The combined ratio at the end of September stood at 98.4%, which represents an increase of 1.9 percentage points, mainly affected by the automobile business. The increase in claims by 3.4 points is partially offset by the cost reduction plan implemented, which improves the ratio by almost 1.5 points.
This quarter, Mapfre has applied for the first time the restatement of financial statements to the subsidiary in Turkey, with a positive net effect on the Group's own funds of 30 million euros, which is made up of an increase of 47 million in capital and reserves , and a negative impact on the result of almost 17 million euros.
Turkey joins Argentina and Venezuela as hyperinflationary countries, generating a negative impact due to restatement in the result of 52 million euros. Stripping out this effect, profit would have grown by 1.3%.
Own funds, which amount to 7,592 million euros, show a reduction of 10.3% since the beginning of 2022, motivated by the rise in interest rates, while ROE rises above 9%.
WILL PAY DIVIDEND OF 0.06 GROSS AND EXCEEDS 40% OF WOMEN ON ITS BOARD
Likewise, the Mapfre board of directors has agreed to pay an interim dividend for the 2022 financial year in the amount of 0.06 euros gross per share, which will be paid on November 30.
Likewise, it has agreed to appoint Marieta Jiménez Urgal as an independent director to replace José Antonio Colomer Guiu, who recently resigned upon reaching the maximum age established in the bylaws to belong to the company's highest decision-making body.
Marieta Jiménez has a degree in Pharmacy from the University of Salamanca. She European president of Merck Biopharma, she has more than 20 years of experience in pharmaceutical multinationals, in which she has held different positions.
After this incorporation, the Mapfre board of directors exceeds the 40% of women recommended by the CNMV.