CCIR

MAPFRE’s net earnings in 2019 came in at 609 million euros, 15.2 percent better than the previous year, while Group revenues rose 7.1 percent to 28.47 billion euros. Premiums were up by 2.2 percent to 23.04 billion euros, thanks, among other things,

to the solid performance of the business in Spain, in the LATAM North regional area and in the Reinsurance business. Currency conversion rates were not a significant factor in the year (+0.2 percent).

The results for 2019 were heavily marked by the cost of the Faxai and Hagibis typhoons in Japan (107 million euros), the damage caused by riots in Chile (24 million) and the damage caused by heavy rain and storms in Spain (17 million), among other events. The accounts for 2019 also show an impairment of MAPFRE ASISTENCIA’s goodwill in the amount of 66 million euros net. Excluding the catastrophes and goodwill impairment in both 2018 and 2019, MAPFRE’s earnings would have risen by 1 percent to 822 million euros.

This goodwill impairment has no effect on MAPFRE’s cash flow, nor does it affect the Group’s financial strength and flexibility or the capital models on which the ratings and high solvency margins are based, as goodwill is excluded from their calculation.

MAPFRE’s combined ratio stands at 97.6 percent, reflecting the improvement of this indicator in Brazil, LATAM North and the United States, thanks to the measures taken within the profitable growth framework.

The Group’s attributable equity at the 2019 fiscal year-end stood at 8.85 billion euros, up 10.8 percent, and total assets grew 7.8 percent, reaching 72.51 billion euros.

Group investments increased by 8.6 percent in the last year to 53.52 billion euros, with 56.2 percent of these investments in sovereign debt and 17.5 percent in corporate fixed income, while 5.2 percent are equity investments and 4.7 percent are cash.

At the close of September 2019, the Solvency II ratio stood at 195 percent, compared to 198 percent in June, with 87 percent high-quality capital (Tier 1). It is important to note that the solvency ratio remains both robust and stable, thanks to a high level of diversification and a stringent investment and management policy.