Mapfre has recently presented a demand in los juzgados of Madrid against the firma valoradora Oliver Wyman y against CaixaBank por el fin del acuerdo de bancaseguros con Bankia, según recoge en el indel of results del primer semester of 2022 que la aseguradora ha dado a conocer this Thursday.
Mapfre points out that this lawsuit is based on the “inaccuracy” of the valuation of the life insurance business carried out by Oliver Wyman for the purpose of fixing the price of Bankia Vida shares that CaixaBank had to pay due to the break-up of the bancassurance agreement between Bankia and Mapfre, following the merger by integration of Bankia with CaixaBank.
On the other hand, Mapfre and CaixaBank decided to submit to arbitration the difference on whether the insurer should receive, under the contractual terms, an additional 10% of the value of the Life and Non-Life activities. Life included in covenant. “In accordance with the valuation set by Oliver Wyman, this additional 10% would amount to 52 million euros, although the amount could be modified depending on the result of the procedure linked to the valuation”, specifies Mapfre.
The arbitration started late last year 2021. Mapfre expects a final award before the end of this year. If it is favorable to the interests of the insurer, “this income will be recognized when the decision is final”.
Mapfre recorded a net profit of 338 million euros in the first six months of this year, which represents a decrease of 7.3%, due to the increase in the loss ratio resulting from the current inflation scenario high in the world, as well as the increase in mobility after the lifting of restrictions by Covid-19.
Likewise, premiums increased by 7.3% in the first half of this year, reaching 12,510 million euros. In its report, the company indicates that this growth is affected, on the one hand, by the issuance of the two-year extraordinary policy in Mexico in June 2021 and the sale of Bankia Vida, also last year, with premiums s amounting to 93.4 million euros. On the other, the insurer highlights the “favorable” behavior of almost all currencies against the euro in 2022.
This is the largest semi-annual volume of premiums in the last five years, as reported by the insurer, which ratifies its intention to continue developing the Strategic Plan presented to the general meeting of shareholders, despite the environment ” complex and uncertain.
The group’s result for the first six months of the year amounted to 14,807 million euros, which represents an increase of 5.1% compared to the same period of the previous year.
The Iberian Peninsula, which continues to be the region that contributes the most to the group’s result, stands out for the good development of general insurance, which makes it possible to compensate for other lines, such as Auto, which are registering an impact more important than inflation and claims. For its part, Mapfre RE (reinsurance activity and global risks) contributed to a “remarkable” growth in premiums of 13.9%, despite the fact that its profit was conditioned by the 51 million claims caused by the drought in the Parana basin.
Similarly, according to the entity, the “strong” restructuring of the activity undertaken in recent quarters in Assistance has enabled this unit to contribute, thanks to the sale of activities, 8 million euros to the group’s result. .
Investments, meanwhile, amount to 42,213 million euros, half of which corresponds to sovereign bonds. Assets of pension funds amounted to 5,617 million euros at the end of June, while those of investment funds and others amounted to 5,245 million euros.
The Solvency II ratio in March 2022 stood at 205.3%, with 88.1% of the highest quality capital (tier 1). “This ratio reflects the great solidity and stability of Mapfre’s balance sheet, with a prudent balance sheet approach and active management of investments”, underlines the insurer.