MAPFRE ACHIEVED IN THE FIRST NINE MONTHS A NET ATTRIBUTABLE RESULT OF 765.6 MILLION EUROS, AN 8.7% RISE REVENUES INCREASED OVER 12% (17,563.9 MILLION EUROS)
- Favourable business development in
- Excellent performance of the international business, which grows both in premiums volume and profits
- Increase in equity of nearly 1,500 million euros(+18.6%) as at September
- Reduction of debt levels by 365 million euros in the first nine months of the year
- Restructuring of the operational organisation model of the Direct Insurance Spain Division, with the aim to further improve customer focus and the leveraging of synergies
- Approval of the distribution of an interim dividend in cash of 0.07 euros per share, resulting in the allocation of 456.5 million euros to dividends in 2011
MAPFRE achieved in the first nine months of the year a net attributable result of 765.6 million euros, 8.7% more than in the same period of the previous year, due to the favourable business development in
Likewise, the net results of the Group's insurance business increased 6.1%, to 857.3 million euros. These results, achieved in a challenging economic environment, confirm the strength of MAPFRE's business model.
Consolidated revenues (17,563.9 million euros) exceeded 12.1% those for the first nine months of the preceding year. Consolidated direct insurance and accepted reinsurance premiums amounted to 14,659.8 million euros, a 13.9% rise.
In these first nine months of the year, MAPFRE's equity increased nearly 1,500 euros million, and debt levels were reduced by 365 million euros.
The positive trend in the Group's Direct Insurance loss experience has mitigated the impact of the natural catastrophes in Asia, the
1.- Business development:
- Premiums at MAPFRE FAMILIAR amounted to 3,148.2 million euros, a figure equivalent to that recorded in 2010. Of note is the growth of Motor insurance (+0.2%, compared to the 2.1% decline in the sector) and Home insurance (+9%, more than double the sector's growth).
- Life Assurance premiums reached 2,389.3 million euros (+17.8%) due to the excellent development of the Individual Protection business, the good performance of the Life-Savings segment through the agents channel and the consolidation of the operations of CatalunyaCaixa. Technical reserves increased to 17,866.5 million euros.
- Premiums from Commercial Insurance stood at 521.6 million euros (-1.4%), a figure that reflects an improvement in trend with respect to the first six months of the year, despite a contraction in the TPL and Engineering lines, as a result of the low level of activity in the construction sector.
The international business, which represents 61.4% of the Group's total premiums, has grown 19.4%, reaching 9,611.8 million euros.
- Premiums at MAPFRE AMÉRICA exceeded 4,907 million euros, a 30.7% rise compared to the third quarter of 2010, with noteworthy growth in
- Premiums at MAPFRE INTERNACIONAL (
- Premiums at MAPFRE GLOBAL RISKS and its subsidiary MAPFRE CAUCIÓN Y CRÉDITO increased 11.5%, to 813.2 million euros, with special growth in
- Accepted premiums at MAPFRE RE reached 2,037 million euros, an 11.3% rise. The favourable business development reflects the good performance of the renewal campaigns and new business volumes.
- Revenues from MAPFRE ASISTENCIA (premiums and income from the sale of services) increased 29%, to 528.4 million euros.
2.- New Operational Structure of the Direct Insurance
MAPFRE has restructured the operational organisation model of its Direct Insurance Spain Division, with the aim of further improving its focus on retail and corporate clients, and making the most of synergies in order to increase its efficiency.
Under this new structure, the Division's Business Units (Familiar, Vida and Empresas) maintain the management of their products and services, the definition of their strategic objectives and the development of appropriate policies for their achievement, and share common services and areas. In addition, two Customer Areas (Retail and Corporate) will be created, which will develop the policies necessary to enhance cross-selling and customer loyalty.
Moreover, and with the aim of responding to MAPFRE's complex multi-channel reality, a new sales structure will be defined, which will improve the coordination in all channels and will boost its performance. To this end, a single Commercial Corporate Centre will be created in Spain, in which -in line with the new orientation of the Business Units- two Commercial Units (Retail and Corporate) will be set up, as well as specific areas for the main Channels (agents network, brokers, agriculture and livestock, telephone and Internet, bancassurance and specific networks).
Likewise, MAPFRE's regional structure will be reorganised, with the double objective to better utilise the Group's management resources in each region, and to build closer customer relationships in order to increase service quality.
In this new model, the supervisory functions of MAPFRE's Regional Head Offices will be extended in every technical, operating, control and support aspect for all the distribution channels.
Following this restructuring, MAPFRE's Regional Structure in
This new organisational model, effective as of 1st January 2011, will be implemented following the strictest productivity and efficiency criteria, aiming that all positions and responsibilities are held by the right persons. This involves the appointment of 58 people for the new responsibilities (14 at the Headquarters and 44 in the Regional organisation).
3.- Interim dividend
The Board of Directors has agreed to pay an interim dividend of 0.07 euros per share; therefore the total amount paid in the year will be 0.15 euros per share. Total dividends paid in 2011 amount to 456.5 million euros, a 2.7% rise compared to the previous year.