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Mapfre reports 32% decline in group Q1 profit

Spanish (re)insurer Mapfre said group net profit in the first quarter fell 32 percent to EUR127mn ($138.7mn), with the Puerto Rico earthquake in January and unfavourable exchange rates dragging the consolidated result down. 

In a partial disclosure instead of the full Q1 earnings report expected, the Spanish company said the Puerto Rico earthquake, which was the worst in the territory for more than 100 years, generated a loss of EUR54mn for the business. Storm Gloria in Spain cost a further EUR14mn, and fluctuations in emerging market exchange rates cost another EUR6mn. 

It said the impact of Covid-19 was “limited” in the first quarter.

The group Q1 combined ratio rose 4.1 points year-over-year to 100 percent.

Mapfre said reinsurance premiums fell 18 percent to EUR1.06bn, with the unit making a loss of EUR22mn. Mapfre Global Risks, which was folded into the reinsurance business last year, posted 42 percent premium growth to EUR349mn and a loss of EUR8mn.

Mapfre in March issued new, lower three-year financial targets after reinsurance losses last year emanating from typhoons Faxai and Hagibis and the Chilean riots forced it to reconsider its original targets.

In the fourth quarter, Mapfre had swung EUR146.5mn into the black at group level after a break-even result a year earlier. However, its non-life combined ratio worsened 5.2 points to 101.4 percent. 

Mapfre Re fell to a EUR44.6mn Q4 loss and reported a 114.1 percent combined ratio. 

The Spanish company will release complete Q1 results on 18 May. 

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