This article first appeared on GuruFocus.
Release Date: October 31, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Mapfre SA (MPFRF) reported a net result increase of nearly 27%, reaching 829 million, with a return on equity of 12.4%.
Premiums grew by 3.5%, reaching over $22 billion, and would have grown nearly 8% at constant exchange rates.
The non-life combined ratio improved to 92.6%, with a strong reduction in the claims ratio to 65%.
The interim dividend increased to $0.07 per share, up nearly 8% compared to last year.
Mapfre SA (MPFRF) maintained a strong capital base with shareholders’ equity up 5% during the year, reaching 8.9 billion.
Exchange rate volatility, particularly with the US dollar and Latin American currencies, is affecting the top-line.
The macroeconomic context is challenging, with a slowing world economy, fiscal tensions, trade wars, and higher geopolitical risks.
Premiums in North America are down 4% in euros, with a 3-point drag from the US dollar.
The life business in Brazil saw a 14% decline in premiums, impacted by currency and high interest rates.
The company recorded extraordinary impacts of 79 million from partial goodwill write-downs in Mexico and de-recognition of tax credits in Italy and Germany.
Q: Has there been any impact from the recent hurricanes in the Caribbean on Mapfre’s reinsurance business? A: Jose Manuel, Vice President, stated that the impact so far is negligible. Mapfre has no exposure to Cuba and Jamaica, and global exposure is minimal, unlikely to affect results.
Q: Can you provide details on the reserve strengthening during the quarter? A: Jose Luis Jimenez, CFO, explained that reserve reinforcements amounted to 165 million year-to-date, impacting the combined ratio by about 5 points. In the last quarter, reserves were around 60 million.
Q: What is the outlook for the combined ratio in the motor insurance segment? A: Jose Manuel noted that the combined ratio in motor insurance is 99.6%, showing a 5-point improvement over last year. It is expected to continue improving in the coming quarters.
Q: Why did financial income in Iberia decrease, and can we expect stabilization? A: Jose Luis Jimenez mentioned that last year’s financial income was boosted by a significant capital gain from real estate sales. Stabilization or slight growth in financial income is expected moving forward.
Q: What are Mapfre’s M&A plans and strategy going forward? A: Felipe Navarro, Deputy General Manager of Finance, stated that there is no immediate change in strategy. Mapfre is looking for opportunities in Spain, Germany, Italy, Brazil, and Mexico, focusing on increasing distribution power and expanding in key markets.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.