Mapfre (MAP) Q3 2024 earnings summary

Executive summary

• Net income rose 39% to EUR 654 million, despite a EUR 90 million goodwill impairment in Germany; adjusted net income for nine months was EUR 744 million, with an adjusted ROE of 12% and strong technical management across markets.

• Premiums reached EUR 21.6 billion, up 4.6% year-over-year at constant exchange rates, with growth in both Non-Life and Life segments.

• Interim dividend increased to EUR 0.065 per share, up 8%, reflecting confidence in future performance and commitment to shareholders.

• Profitable growth strategy and diversified business model drove positive trends across regions, with LATAM as the largest contributor to earnings.

Financial highlights

• Shareholders' equity up 4.5% to over EUR 8.4 billion; Solvency II ratio at 196.6% as of June 2024.

• Non-Life combined ratio improved to 94.8% (92.9% in Q3); General P&C combined ratio at 81%.

• Premiums: Non-Life up 4.3%, Life up 5.6%, Life Savings up 8.2%.

• Net profit in Iberia up 15.5% to EUR 283 million; LATAM profit EUR 305 million (+7.7%); Brazil net result EUR 188 million.

• Reinsurance and global risks profit EUR 207 million, up 9%.

Outlook and guidance

• Financial targets on track: adjusted ROE at 12% (target 10-11%), combined ratio at 94.8% (target 95-96%), premium growth (ex-Life Savings) at 4.2% (5.8% at constant FX).

• Ongoing recovery in auto business, especially in Spain and the US, expected to support future results.

• Dividend policy remains at 50-65% payout, with future increases dependent on year-end results.