Mapfre trims three-year financial targets
Spanish (re)insurer Mapfre has released its revised three-year targets after reinsurance losses emanating from typhoons Faxai and Hagibis, as well as the Chilean riots, prompted it to tear up earlier plans.
The company had warned in December it was rethinking its targets and that it would present its new goals at its annual shareholders’ meeting today.
Today Mapfre pledged group revenue by the end of 2021 of between EUR28bn and EUR30bn ($31.4bn and $33.7bn) and an average return on equity of between 8 percent and 9 percent over the three-year period.
It is also working to an average combined ratio over the period of between 96 percent and 97 percent.
The non-life combined ratio as of 2019 was 97.6 percent, while 2019 revenue was EUR28.5bn, and the return on equity was 7.2 percent.
Targets set in March 2019, by contrast, envisaged revenue of EUR30bn by 2021, average premium growth of 5 percent over three years and an average return on equity of 10 percent.
CEO Antonio Huertas told shareholders: “We have moderated our profitability and growth expectations and will continue to make prudent underwriting decisions in this complex environment. We plan to deliver solid technical margins, as our target combined ratio shows.”
Digital growth, an increased focus on life insurance and a commitment to measure investments against sustainable development goals will be among other areas of focus.