Insurer Mapfre's profit surges 20% despite regulatory hit in Latin America (updated)

Mapfre SA

12/02/2026 08:37

Adds comment on weather-related events in paragraphs 7-8

By Marta Serafinko and Mireia Merino

Feb 12 (Reuters) - Spanish insurer Mapfre MAP.MC reported a 19.6% rise in its yearly profit on Thursday, as growth in the non-life insurance business and lower hyperinflation adjustments helped cushion regulatory impacts in Latin America and one-off costs.

Mapfre's net profit was 1.08 billion euros ($1.28 billion) last year, compared to 901.6 million euros in 2024. Premiums rose 3.6% to a record 29.14 billion euros in the same period.

The Iberia region, which made up around 40% of group earnings, saw a 22.7% rise on the back of higher premiums and an improved non-life combined ratio, owing to price increases and stricter underwriting measures in the car insurance business.

The group's non-life combined ratio, a key measure of an insurer's profitability, improved to 92.2%. A ratio below 100% means the company earns more in premiums than it pays out in claims.

Hyperinflation adjustments dented the annual result by 31 million euros, halving from a year earlier.

In Latin America, Mapfre booked a 94-million-euro hit from tax changes in Mexico and a minimum wage increase in Colombia. It had previously flagged extraordinary costs of 78.6 million euros tied to non-cash charges and tax accounting adjustments.

Last year was relatively benign in terms of catastrophic events, with damages related to California wildfires being offset by milder conditions for the rest of the year, CEO Antonio Huertas said.

Mapfre does not expect a material impact from recent floods in the Iberian Peninsula, as flood-related damage is largely covered by Spain's public insurance compensation scheme, it said.

The company's board will propose a final gross dividend of 0.11 euro per share, bringing the total payout for 2025 to 0.18 euro per share, up 12.5% from a year ago.

($1 = 0.8425 euros)

(Reporting by Marta Serafinko and Mireia Merino in Gdansk, editing by Milla Nissi-Prussak)

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