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MAPFRE USA Returns To Net Profits Of $51 Million Through September, Increases Premiums 7,4%

  • MAPFRE North America generates premiums of $2.5 billion in the period.
  • The Group posts global revenues of $23.4 billion, with $639 million in net earnings.

MAPFRE USA returned to a $54 million net profit in the first nine months of 2016, compared with a $56 million loss the year earlier, related to the heavy snowstorms that hit the North East of the United States in the previous winter. At the same time, the company generated insurance revenue of $2,157 million in the U.S. market through September, driven by its strong competitive position in States such as Massachusetts and Connecticut. MAPFRE’s insurance business increased premiums by 7,4 percent in the period.

MAPFRE North America (which also includes Puerto Rico and Canada) recorded premiums of $2.5 billion in the first nine months of the year. Puerto Rico grew 1.1%, to $319 million, on profits of $19 million (+33.9%). The region accounts for 12 percent of the company’s global premiums and 9 percent of profits.

Global figures

MAPFRE recorded revenue for the first nine months of the year of $23.4 billion, an increase of 1.8 percent with respect to the same period of the previous year, while premiums totaled $19.1 billion, 1.3 percent less. Earnings before taxes and non-controlling interests grew by 15.5 percent to $1,498 million, and net profits were $639 million, 3.3 percent lower than the equivalent figure for the first nine months of 2015.

Two events in 2015 impacted that year’s results in an extraordinary manner: the sale of the insurance business that was jointly-owned with CatalunyaCaixa and the extraordinary cost of snowstorm-related claims in the United States. Excluding the effects of both of these events, the like-for-like growth in Group attributable earnings would have been 5.5 percent.

These results come on the back of the Group’s strategy to concentrate its business on profitable activities. MAPFRE’s combined ratio improved by 1.5 percentage points to 97.2 percent, with excellent combined ratios in Spain (93.4 percent), Brazil (94.7 percent) and the northeastern region of the US, which accounts for 74 percent of the country’s premiums, (95.2 percent).

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