MAPFRE reports North America profit of $51.2 million for first half of 2014

Global insurance group MAPFRE has reported a profit of $51.2 million in North America for the first half of the year, on a premium volume of $1.3 billion.

North America (which include the United States, Puerto Rico and Canada) accounted for 8% of the Spanish company’s global premiums, which were $16.1 billion for the past six months, and 5.2% of total profits ($628 million). Premium volume was up 0.4% over last year.

The U.S market contributed premiums of $1.1 billion in the first half, (up 3.9% over last year), driven by strong Motor and Home business performance, (which were up 2.6% and 9.6% respectively) and earnings of $43 million. Puerto Rico accounted for $202 million in premiums and $7.9 million in profits, (up 42.9% from last year).

Overall, the group posted global revenues of $18.8 billion, with $627 million in earnings. “The first half was characterized by the strength of the euro against the company’s key trading currencies; at constant exchange rates, premiums would have grown by 8% and profits by 7%,” the company said.

Total non-life premiums in the first half totaled $11.8 billion, (down 0.5%), but the second quarter saw a year-over-year increase of 1.4%.

“These results show the international business continues growing, and MAPFRE is noticing signs of economic recovery in Spain. Moreover, the excellent 95.7% combined ratio reflects outstanding operational management,” Antonio Huertas, MAPFRE’s chairman and CEO commented in its statement.

Other performance highlights for the first half of the year included:

• The Iberia Regional Area generated premiums of $5.9 billion, which represents a 0.3% rise (over the first half of 2013).
• Premiums from the Brazil Regional Area grew 1.1% to $3.7 billion, up 19.1% in local currency terms.
• The LATAM South Regional Area reported premium volume of $1.9 billion, which represents a 2.3% drop, although significant increases were recorded in the region’s principal countries in local currency terms.
• Premiums from the LATAM North Regional Area stood at $887 million (up 4.1%).
• Premium volume from the EMEA Regional Area amounted to $843 million, (down 5.2%)
• Premiums in the APAC Regional Area grew by 13 percent, to $63.2 million, with the Philippines contributing $23.8 million.
• Premiums from the reinsurance business totaled $2.6 billion, (up 1.9%), due primarily to new Life Assurance contracts. Net income from the business rose 14.9% to $93 million, in spite of the increase in the loss ratio in the second quarter of the year.