The following is a summary of the Mapfre, S.A. (MPFRF) Q4 2023 Earnings Call Transcript:

Financial Performance:

• Mapfre reported an impressive revenue increase, with premiums just under €27 billion (up nearly 10%) and total revenues over €32 billion (up around 9%).

• The company ended the financial year with a net income of €767 million, marking more than a 19% increase, excluding a €75 million write-down.

• The improved combined ratio to 97% is still above the target, causing some concern, while the Return on Equity (ROE) is within the target at 9%.

• Dividends increased to €0.09, their highest in five years, leading to a total of €0.15 per share, offering one of the highest dividend yields amongst leading European insurers at 7.7%.

• Mapfre experienced growth in Life and General insurance, as well as reinsurance and large commercial businesses, contributing to a diversified profit pool.

• Despite some big losses due to global events, the net result touched €692 million with strong performances in Latin America and Iberia.

Business Progress:

• Mapfre is implementing a new strategic plan aimed at increasing sustainability, profit, and ROE. This plan will introduce several operational improvements including tariff adjustments and incorporation of climate change risks.

• The growth in recurrent yield in fixed incomes for 2024 is expected, though there are points to be improved significantly in markets such as Brazil and Mexico.

• Mapfre is continuously transforming digitally, with a significant 25% increase in digital clients over the year, now totaling 2.4 million.

• They anticipate improvements in the Motor Insurance segment due to tariff adjustments aimed at counteracting increasing claims.

• The company experienced significant growth in U.S., increasing tariffs and non-consumer premiums by 30% and 18% respectively from beginning of the year.

• It aims to remain financially flexible by observing the repatriation of dividends, reducing the impact of volatility in the P&L, and expanding its investment portfolio.

• The company is ahead in its asset management, with pension funds up over 12% and mutual funds nearly 20% over the year, indicating strong operational performance.

More details: MAPFRE SA IR

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