Mapfre targets COR of 94% in new strategic plan
Spanish insurance giant targets premium growth of up to 6% over the next three years
Mapfre is targeting premium growth of up to 6% and a combined ratio in the region of 94% over the next three years.
In its new strategic plan for 2022-24, unveiled today, the Spanish insurance giant said the new plan was underpinned by “disciplined, sustainable, balanced and profitable growth”.
This would be coupled with “improvements in internal efficiency” and an “acceleration” of the business transformation already underway around sustainability and diversity.
Over the period, Mapfre is aiming to achieve average premium growth of 5% to 6%, with a return on equity (RoE) of 9% to 10%.
The company also plans to position the average combined ratio between 94% and 95% over the three-year period.
In addition, Mapfre pledged not to invest in or insure coal, gas or oil companies “that are not implementing an energy transition plan”.
The company aims to finish the three-year period with at least 90% of the investment portfolio rated in line with ESG criteria
Mapfre will also “eliminate” the gender pay gap by the end of the three-year period.
Mapfre cautioned the objectives had been set before the war in Ukraine broke out. Given the uncertainty and high levels of volatility the crisis has created, some aspects of the assumptions underpinning the plan may need to be reviewed, “depending on the impact and evolution of this conflict”, the company said.
Neither the combined ratio nor the RoE targets factors in “very relevant extraordinary aspects or major catastrophic events”, Mapfre added.
The strategic plan was unveiled at the firm’s annual general meeting.
At the meeting the re-elections of Antonio Huertas as executive director and Catalina Miñarro and Pilar Perales as independent directors were also approved.