Mapfre Re’s 2019 earnings fall 48% from typhoon hitsFebruary 13 2020 by Andrew Tjaardstra
Mapfre Re’s net profit dropped 48% to €77 million (US$84 million) for the calendar and financial year 2019.
This was a fall of 48% which the (re)insurance giant attributed to claims from typhoons Faxai and Hagibis which slammed Japan in September and October; together thy cost the firm €107 million (US$116.8 million) in payouts.
Market losses for Super Typhoon Hagibis are estimated at US$8 billion and for Typhoon Faxai are around US$7 billion.
Andres Lorenzana, principal officer Singapore at Mapfre Re, told InsuranceAsia News in December: “As we approach the January 1 renewal period, it is a tough and competitive marketplace in Asia, with a difficult nat cat and rating environment, particularly following some major losses during the year, including Super Typhoon Hagibis in Japan.”
Mapfre Re’s gross written premiums at the close of 2019 were €4.52 billion, 19.4% higher than in the previous year.
Overall Mapfre’s net profits in 2019 came in at €609 million (US$664.8 million), 15.2% better than the previous year, while group revenues rose 7.1% to €28.5 billion (US$31 billion).
Mapfre is set to revise its current Strategic Plan 2019-2021 and will review this in March at the group’s annual general meeting.
Last year Mapfre and China Re signed a memorandum of understanding to jointly insure projects under Beijing’s Belt and Road project.
As part of the agreement between the two firms, Mapfre will offer insurance and reinsurance support to Chinese interests in Europe and South America where it has a local presence.
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The firm is now expecting A$850m of nat cat costs this year, up from A$715m in January.