Mapfre’s shareholders’ meeting has approved the 2020 accounts, year in which it obtained a net profit of 527 million euros. It has also approved a complementary dividend of 7.5 gross euro cents per share, bringing the total dividend charged to results to 12.5 gross euro cents per share.
The group’s president, Antonio Huertas, has outlined some of the company’s strategic lines for the coming years. Among the objectives, The manager has pointed out that Mapfre will be able to earn more than 700 million euros this year, which would represent an increase of 33% compared to the year 2020, very marked by the pandemic.
Mapfre’s management estimates that the group will have revenues similar to those of 2020, with a premium growth of around 3%. In this context, and without extraordinary elements, Mapfre foresees an attributed net result of more than 700 million euros, and to continue creating value for the shareholder, with an ROE (return on capital) of around 8.5%.
“We have a healthier balance sheet, an excellent solvency position, more demanding technical fundamentals and an ongoing operational transformation, all of which should allow us to grow sustainably and profitably in the coming years,” Huertas pointed out.
The manager has also complained about the current price of Mapfre’s shares, which he considers that It is not adequate given the group’s capabilities and the reality of the business, and it trusts that its potential will eventually be recognized.
“If the market does not appreciate it, we will have to continue working to transfer the assessment that the board of directors believes should be taken“, the President of Mapfre has remarked.
He has also explained that, although insurers are impacted due to the development of financial markets or low interest rates, their life business portfolios are married and have “no risk whatsoever or relevant “.
“Our expectations for the action are very, very positive, we hope that after this meeting the market can value not only the effort financial, but also the strategic and operational, as well as the commitment of each day with the performance in each of the geographies in which we are present, “he added.
Mapfre’s shares are trading today at 1.66 euros, when in 2019 they were worth 40% more. The market has penalized problems that the insurance group has had with several of its international subsidiaries. Especially those of Turkey, the United States, Indonesia and Italy, in which the insurer has had to revise the value of the business downwards.