Spanish Insurance Giant MAPFRE Enjoys Home-Grown Rebound

February 11, 2015 by Macarena Munoz

MAPFRE SA, Spain’s biggest insurer, recorded a 6.9 percent rise in net income last year on higher returns in its home market.

Net profit grew to 845 million euros ($956 million) from 790.5 million euros a year earlier, the Madrid-based company said in a filing to regulators Wednesday. MAPFRE’s shares fell 0.5 percent to 3.0 euros at 10:35 a.m. in Madrid.

MAPFRE is counting on Spain’s economic comeback to help it boost profit in its biggest market as it pursues expansion plans in North America, Europe and Asia. Earnings from Spain rose 25 percent in the year to 432 million euros, confirming a turnaround in its home market that began in 2013. Total premiums rose 2.6 percent to 22.4 billion euros.

MAPFRE in September bought the German and Italian businesses of Direct Line Insurance Group Plc for 550 million euros. Chairman Antonio Huertas said at the time that it was also exploring the U.S., Mexico and Asia for possible deals.