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Introduction & Market Context
Spanish insurance giant Mapfre (BME:MAP) presented its first-half 2025 results on July 24, showing strong performance across its diversified business model despite ongoing macroeconomic challenges. The company’s stock has experienced recent volatility, with shares trading at €3.834 as of October 31, down 5.01% in the latest session, though still significantly above its 52-week low of €2.34.
The insurer demonstrated resilience in navigating currency fluctuations, which have been a persistent challenge in its international operations, particularly in Latin America. Despite these headwinds, Mapfre delivered substantial profit growth and operational improvements across all regions.
Executive Summary
Mapfre reported a net profit of €570 million for the first half of 2025, representing a 23.6% increase compared to the same period in 2024. This growth was driven by improved technical management and strong performance across all regions, particularly in Iberia and North America.
As shown in the following comprehensive overview of financial performance:
Total premiums reached €15,947 million, growing 5.3% year-over-year (10.2% at constant exchange rates), demonstrating the impact of currency depreciation on reported figures. The non-life combined ratio improved significantly to 93.1%, a reduction of 2.6 percentage points from the previous year, reflecting enhanced underwriting discipline and claims management.
Return on equity (ROE) increased to 12.2%, up 1.3 percentage points from December 2024, with an adjusted ROE of 13.3% when excluding the partial goodwill write-down of Verti Germany (€90 million) in September 2024.
Quarterly Performance Highlights
Mapfre’s performance showed strength across all major business segments. The non-life business, which accounts for approximately 77% of total premiums, grew by 2.5% (7.5% at constant exchange rates) to €12,273 million. Meanwhile, life premiums surged by 15.7% (20.4% at constant exchange rates) to €3,675 million.
The company’s strategic progress by region reveals impressive growth across its global footprint:
Particularly noteworthy was Iberia’s performance, with a 42.4% increase in net result to €239 million, driven by a highly diversified business mix and a strong recovery in the motor segment. North America also showed remarkable improvement with a 47.7% increase in net result to €60 million, supported by technical measures that resulted in an excellent combined ratio of 96.5%.
The breakdown of premiums by line of business illustrates Mapfre’s diversified revenue streams:
Detailed Financial Analysis
Mapfre’s financial position remained solid with shareholders’ equity of €8,519 million as of June 30, 2025, a slight increase of 0.1% compared to December 31, 2024. The Solvency II ratio stood at 205.6% as of March 2025, indicating a strong capital position well above regulatory requirements.
The company’s investment portfolio totaled €46.5 billion, representing a 1.6% increase. The asset allocation strategy remained conservative with a significant portion allocated to fixed income:
Government fixed income securities accounted for 48.6% of the total investment portfolio, followed by corporate fixed income at 21.5%. This conservative approach has helped Mapfre maintain stability amid market volatility while generating solid financial income.
The reconciliation between local accounting and IFRS standards provides further insight into the company’s financial performance:
Regional Performance
Mapfre’s regional performance showed improvements across all major markets. The Iberian region, which includes Spain and Portugal, continued to be a major profit contributor with a net result of €239 million, up 42.4%. This was driven by a diversified business mix and a significant improvement in the motor combined ratio to 98.4%.
Latin America delivered a net result of €223 million, up 10.2%, with excellent performance in Brazil, Mexico, Peru, and Colombia. The region benefited from high financial income, partially offsetting the impact of currency depreciation.
The auto line performance across main regions showed significant improvement, particularly in North America:
However, the life business presented a mixed picture with the Life Technical Financial Result declining by 10.8% year-over-year to €347 million and the Attributable Result decreasing by 23.7% to €130.4 million:
Strategic Initiatives & Outlook
Mapfre’s management expressed confidence in the company’s outlook for the remainder of 2025, highlighting several key strategic initiatives and strengths:
The company emphasized its improving profitability across all countries, regions, and business units, supported by a highly diversified business model both in terms of product mix and geography. Technical excellence and profitable growth remain core focuses, underpinned by internal transformation and efficiency improvements.
Mapfre believes it is well-positioned to navigate macroeconomic and geopolitical uncertainties as well as currency depreciation challenges, maintaining a positive outlook for 2025. This optimism aligns with the company’s Q3 2025 performance, which showed continued momentum with net profit reaching €829 million, a 27% increase year-over-year.
Despite the positive operational performance, investors should note the recent stock price volatility, with shares down 5.01% in the latest trading session. This reflects broader market concerns about global economic conditions rather than company-specific issues, as Mapfre continues to deliver strong fundamental results.
Full presentation:
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