Mapfre (MAP) Q2 2024 earnings summary

Executive summary

• Net result rose 47% to €462 million in H1 2024, driven by strong premium growth, improved profitability, and robust performance in LATAM, Iberia, North America, and reinsurance.

• Premiums increased 5.5% to over €15.1 billion, with consolidated revenue up 4.3% to €16.8 billion.

• Combined ratio improved to 95.7% (down 1.3 p.p.), with notable technical management improvements in Auto and strong business growth in reinsurance.

• ROE reached 10.6% (11.6% excluding goodwill write-down), and all financial KPIs are in line with targets.

• Financial income increased 11.6%, supporting sustainable growth.

Financial highlights

• Net result reached €462 million, up 47% year-over-year; ROE at 10.6% (11.6% excluding goodwill write-down).

• Premiums in Non-Life grew 6.5% to nearly €12 billion; Life premiums up 2%, with Life Protection growing over 10%.

• Non-Life combined ratio improved to 95.7%; Solvency II ratio at 197.7% as of March 2024.

• Financial income for Non-Life up 11.6% to €401 million.

• Shareholders' equity stable above €8 billion.

Outlook and guidance

• Expect continued premium and revenue growth in the second half, focusing on high-margin segments and further improvement in combined ratios.

• Tariffs are being updated to match inflation and claim trends, especially in motor.

• Strategic plan targets profitable, diversified growth by geography and business segment.

• Life business in Iberia and Brazil expected to maintain positive trends.

• Main uncertainties include geopolitical risks, inflation, and interest rate volatility.