Mapfre reports increased profits in Q1 despite surging LatAm COVID claims

Mapfre, the Spanish re/insurance company with operations in Iberia and Latin America, reported increased year-on-year profits in the first quarter of 2021, despite the impact of COVID-19, which saw a significant number of claims affecting its Latin American business.

Mapfre made a before tax profit of €308.1 million in Q1 2021, an increase of more than 15 percent on the €267.3 million reported in the same period the previous year.

It reported gross written premiums of €5.89 billion in Q1 2021, compared to €6.1 billion in Q1 2020, a decline of 3.3 percent. Its combined ratio improved by almost six percentage points compared to the same quarter in the previous year, to 94.3 percent.

These improvements came despite COVID-related claims of more than €109 million for the quarter, Mapfre said, including more than €34 million in health and €48 million in life protection, predominantly in Latin America.

Mapfre pointed to particularly notable reductions in its automobile line and a lack of significant catastrophic claims as driving its improved performance.

Mapfre Re, its reinsurance business, saw premiums increase by 12.2 percent in Q1 to just under €1.59 billion, with the combined ratio improving by more than 14 percent, to 95.1 percent. The reinsurance business reported improved conditions in some lines, and earnings of €25 million euros, compared with losses of €22 million in Q1 2020.

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