Spanish giant Mapfre has estimated a profit hit from Japan’s typhoons and Chile’s riots to range from between €130  million to €140 million (US$144 million to US$155 million).
The costs, revealed in its 2019 financial year statement, stem mostly from Japan’s year of natural catastrophes, namely – October’s Super Typhoon Hagibis, which was the most powerful storm in 60 years to hit the country, and September’s Typhoon Faxai. Market losses for Hagibis are estimated at US$7 billion to US$11 billion; and for Faxai around US$7 billion.
The civil unrest in Chile also impacted Mapfre’s profits, but to a lesser extent. These events will most significantly impact the firm’s reinsurance business.
Despite the profit hit, Mapfre noted that the events “do not have a significant impact on [the company’s] solvency and capital strength position.” Its board of directors has agreed to maintain the 2019 dividend equivalent to the 2018 amount.
Andres Lorenzana, principal officer, Singapore at Mapfre Re, told InsuranceAsia News earlier this month: “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.”
Lorenzana added that the firm will encourage growth through: “increasing our life book, and our health business is growing very fast with rapidly increasing demand. We are interested in working with local reinsurance brokers for both life and P&C; and looking to grow steadily across a number of markets, including South Korea.”
Considering all factors, Mapfre is set to revise its current Strategic Plan 2019-2021; and will review this in March 2020 at the group’s annual general meeting. Its 2019 revenue in the year ended September stood at €21.62 billion (US$24 billion) — a 6.5% increase from the same period last year. Premiums also grew 2.5% to €17.65 billion (US$19.6 billion).

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