Mapfre Re Q3 swings to underwriting profit despite heavy cat toll
Third-quarter profit at Mapfre Re rose almost 85%. However, a net impact of EUR57mn ($66.7mn) from Covid-19-related claims in the first nine months, as well as other large losses, means the unit is running at a loss in that year-to-date period.
Bottom line: Third-quarter profit at Mapfre Re rose to EUR31.7mn, whereas group profit more than doubled to EUR179.8mn.
However, for the nine-month period Mapfre Re made a loss of EUR20mn after the reinsurance business lost EUR26mn, partially offset by a EUR6mn profit at Global Risks, which serves as an in-house MGA within Mapfre Re.
Major losses: At the nine-month stage, total Covid-19-related losses were EUR81mn, whereas large losses as a whole rose to EUR301.5mn, from EUR166mn, at Mapfre Re. Claims from Puerto Rican earthquakes earlier this year totalled EUR56.7mn, whereas the Beirut explosion in August cost EUR30mn.
The company said Mapfre Re’s standalone Q3 performance had been resilient, despite high natural catastrophe claims, which it didn’t specify. It said its valuation of BI and credit insurance losses related to Covid-19 remained stable.
Combined ratio: The Mapfre unit shaved 5.2 points off its combined ratio in the third quarter, returning to an underwriting profit with a ratio of 95.3 %. The improvement was almost equally driven by progress on the loss ratio and the expense ratio.
GWP: Non-life premiums at Mapfre Re, which accounts for about a third of all non-life premium at the Spanish group, rose 2.5% to EUR1.21bn.