The Diplomat
MAPFRE posted a 7% increase in profit in Latin America in 2020 to €230 million, the Spanish multinational insurer’s results for the previous year, released this week, reveal.
The growth in profit has been accompanied by a significant improvement in the combined ratio (the indicator that measures the profitability of insurance policies after deducting expenses and indemnities for coverage), which has fallen by 4.6 percentage points in one year to 89.8%, thanks, according to analysts, to the mobility restrictions caused by the coronavirus, especially in the automobile policy segment.
This figure offset the fall in premium volume of MAPFRE’s insurance business in Latin America, which fell by 19% to 6,111 million euros, as a result of the economic situation caused by COVID-19 and the depreciation of the main currencies. MAPFRE is the leading multinational insurance company in Latin America. The territorial area as a whole accounts for 30% of the company’s premiums and 43% of its worldwide profits.
