Mapfre expects average growth of 6% in the 2024-2026 strategic plan

The general meeting of shareholders of Mapfre was held on Friday in Madrid, which approved, among other deliberations, the 2023 accounts, the first reported under the auspices of the new international accounting rules IFRS 17 and IFRS 9.

According to these new accounting rules, profits in 2023 amounted to 677 million euros (instead of the announced 692 million).

A total dividend of €0.15 per share was also approved, with part of these dividends already paid in November (€0.06) and AG approved an additional dividend of €0.09 per share, translating into an increase of €0.09 per share. 5.9% compared to last year.

Of the 677 million euros in profits, Mapfre distributed 462 million euros to shareholders.

Mapfre is 69.8% owned by Fundación Mapfre and there are 30.2% free shares, of which 16.6% are institutional investors.

During the General Assembly, the President of the Mapfre Group, Antonio Huertas, presented the strategic plan for the three-year period 2024-2026.

The plan's objectives are to achieve revenue growth of at least 6% on average over the next three years, exceeding €32 billion in premiums at the end of the three-year period. These are the goals of the insurance group, which has branches in 26 countries.

Mapfre wants to achieve an average return on equity (ROE), under the new IFRS accounting standards, of between 10% and 11%, with 11% being the ambitious target for 2026.

Another goal is to create “a common index, averaging between 95% and 96%, with an ambitious goal of reaching 95% by the end of 2026,” says Mapfre.

The company intends to increase the number of countries with a neutral carbon footprint to 15 countries.

Mapfre Group stipulated in the plan that at least 95% of the total investment portfolio must be evaluated using ESG criteria.

Increase the proportion of female CEOs to at least 34% by 2024, with a goal of increasing one percentage point each year.

To achieve these goals, MAPFRE ensures that it continues to actively search for new distribution channels in Spain, Brazil, the United States, Mexico and Germany, as well as complementary growth paths in the life insurance business to replenish the group's portfolio, which implies an increased importance of bancassurance in the company.

Antonio Huertas stressed to an audience of shareholders that “this new cycle involves maintaining the focus on growth and improving results, and that the most important aspects will be improving efficiency and competitiveness in the car insurance business; expanding the offer of protection and retirement savings products; reformulating the operating model in Corporate business and more casual exposure; promoting the excellent technical and commercial development of the reinsurance unit; updating the risk appetite, depending on the profitability, potential growth and scalability necessary to manage with sufficient efficiency and productivity; continuing to promote people's development, supporting further training and talent enhancement; and finally strengthening the cultural aspect that Mapfre differentiates itself based on the slogan “We make Mapfre”.

The company reported a solvency II ratio of 198.1%.

The group also revealed that Mapfre Asset Management, led by Alvaro Anguita, has assets under management worth €53 billion, most of which are Mapfre Group assets and €10 billion are investment funds and pension funds.

Mapfre's total investment and treasury portfolio is $44,002 million, of which $31,691 million is in fixed income assets (corporate and sovereign bonds). The total public debt in the portfolio amounts to 23.004 million.

*The journalist traveled at the invitation of Mapfre