MAPFRE USA Posts $2.6 Billion in 2015 Premiums
The year 2015 has turned out to be a profitable one for the USA operations of MAPFRE. According to the Spanish insurer, MAPFRE generated approximately $2.6 Billion in revenue in the United States alone in 2015. This amount represents an 8.7% increase in premiums over 2014 numbers.
The company says its impressive numbers were driven by the insurers solid development of its Motor, Home and Assistance businesses. MAPFRE, whose USA headquarters are based in Massachusetts, is the largest Property & Casualty Insurer in the Commonwealth.
MAPFRE did acknowledge that it suffered substantial losses in 2015 totaling some $82.7 million. Like many other insurers in New England, the losses were a direct result of the multiple winter storms hitting the Commonwealth at the beginning of 2015. The Group says, however, that it ultimately was able to return to profit by the second half of 2015, logging a $30 million net gain between the months of July and December 2015.
In a written statement to Agency Checklists, MAPFRE reiterated its satisfaction with its performance in 2015 as a whole.
We are pleased with our overall financial results for 2015, considering the significant early losses the company suffered as a result of the historic snowstorms that hit the Northeast early in the year. We are proud to maintain our strong leadership position in the Massachusetts personal auto, homeowners, and commercial auto market, and our achievement of strong countrywide growth.
MAPFRE USA confirms headquarter will remain in Webster
In addition to discussing its 2015 financial results, the insurer also clarified its plans with respect to its purchased of the historic One Winthrop Square in Boston. The insurer confirmed that the historic building was purchased late last year as part of the company’s investment portfolio. In clarifying the real estate purchase, however it emphasizing that it will not be moving its main offices downtown in the near future. Webster, Massachusetts will continue to act as the company’s corporate headquarters for MAPFRE USA.
MAPFRE North America showed impressive gains as well in 2015
It wasn’t only the company’s USA operations which showed impressive gains in 2015. MAPFRE’s total North American operations, which includes the USA along with Puerto Rico and Canada, also posted premiums totaling $3 Billion in 2015. This amount represents a 32% increase in premiums over 2015 (calculated in euros). Of note, MAPFRE highlighted the fact that its Puerto Rican market grew by 4.4% alone recording $424 million dollars in premium.
Overall, MAPFRE’s recorded premiums in the North American market account for 11.6% of the insurers total global revenues.
MAPFRE’s Total Global Figures for 2015
Globally, MAPFRE’s revenues increased by a total of 4.1% in 2015. Premiums amounted to $22,312 million euros representing a 2.3% increase.
“Revenues and premiums continue to grow, reflecting customers’ trust in MAPFRE; but we have to take further steps to improve our efficiency and profitability”, stated Antonio Huertas, MAPFRE’s Chairman and CEO.
Those steps include focusing on profitable growth strategies, customer orientation, digital transformation, and excellence in technical management notes the company in the strategic plan approved for the 2016-2018 time period. The insurer also plans on strengthening the internal culture as well as developing human talent over the next couple of years.
Additionally, Mr. Huertas reaffirmed MAPFRE’s commitment to the Group’s key strategic objectives for 2016, which will focus on achieving a combined ratio below 96 percent, an expense ratio of 28 percent and maintaining a pay-out of over 50 percent.
