Mapfre's profit falls 24.5% due to lower revenues and higher provisions

Mapfre's profit falls 24.5% due to lower revenues and higher provisions

Remuneration to the Board of Directors grows 21.6%

Mapfre obtained a net profit of 528.9 million euros in 2018, 24.5% less than the previous year due to lower revenues - which have fallen by 5% due to low interest rates and the depreciation of currencies, especially the dollar, the Brazilian real, the Mexican peso and the Turkish lira - and the greater provisions to strengthen its balance sheet - have dedicated 173 million to the partial deterioration of goodwill of the insurance operations in the United States, Italy and Indonesia. In addition, the cost of catastrophic events, mainly hurricanes and winter storms, has had an impact of 97 million euros, and the restatement of the accounts of the subsidiaries in Argentina due to hyperinflation has subtracted 18 million. The operating result of the insurer has been 702 million euros, 0.3% more than in 2017,

Mapfre closed 2018 with revenues of 26,590 million euros, 5% less, while premiums stood at 22,537 million euros, 4% less. After discounting the effect of the depreciation of the currencies, the premiums would have grown by 2.1%. In Spain, Mapfre grows 10% compared to an increase of 1.34% in the market and consolidates as the group's engine.

Mapfre will allocate 447 million euros to its shareholders - entirely in cash - charged to the results of 2018, the same amount as the previous year. The total dividend charged to 2018 will amount to 0.145 euros per share, with a dividend yield on the average price of the share of 5.5%.

Remuneration

Regarding the remuneration of the Board of Directors of Mapfre amounted to 15.7 million euros including contributions to pension plans, which is 21.6% more than the previous year, according to the compensation report sent to the CNMV . The president of the company, Antonio Huertas, received 2.67 million last year, of which 2.13 correspond to salary (3.5% more than in 2017) and 527,000 euros to contributions to pensions, which fell in 1.18 million over the one registered in the previous year. Huertas obtained 824,000 euros of salary (1.48% more), 660,000 euros of variable remuneration in the short term (1.2% less), 576,000 of long-term variable (as in 2017) and 71,000 euros for other concepts (compared to 2,000 euros last year).

The counselor and vice-president Antonio Núñez Tovar, who retired in July 2018, received a remuneration of 1.83 million euros and 4,329 million in the pension plan when consolidating the contributions made. In total they were 6.17 million euros including an extraordinary bonus for the 25 years of dedication to the company of 650,000 euros. José Manuel Inchausti joined the Board to replace Núñez Tovar and received 833,000 euros. Counselor and vice-president Antonio Núñez Tovar, who retired in July 2018, received a remuneration of 1.83 million euros and 4,329 million in the pension plan. by consolidating the contributions made. In total they were 6.17 million euros including an extraordinary bonus for the 25 years of dedication to the company of 650,000 euros.