Spanish insurance group MAPFRE confirmed Wednesday that the North American market, which covers Canada, the United States mainland and Puerto Rico, now represents 10 percent of its premiums and revenue. In 2013, MAPFRE’s revenue in the region rose to more than $2.9 billion, an increase of 3 percent over the prior year.
In Puerto Rico, premiums and revenue reached nearly $423.5 million in 2013. In Canada, where MAPFRE is engaged in the reinsurance and roadside assistance business, revenue rose to nearly $26.2 million.
The group, which has been operating in Puerto Rico since 1989, employs some 4,200 people in the U.S. mainland, Puerto Rico, and Canada. In 2008, MAPFRE strengthened its stateside presence through the acquisition of The Commerce Group Inc., the market leader in the automobile and homeowners’ insurance in Massachusetts, with market shares in 2013 of approximately 27 percent and 12 percent, respectively.
MAPFRE’s performance in the U.S. mainland showed a revenue increased by 6.4 percent to nearly $2.5 billion. In addition to Massachusetts, MAPFRE writes insurance in 15 other states, representing 24.6 percent of the group’s stateside business.
“Forecasts indicate significant revenue growth in the United States, the world’s largest insurance market, where MAPFRE has implemented an ambitious plan for organic growth, including, among other initiatives, the expected launch of life insurance products in the second quarter of 2014 and the entry of MAPFRE into the insurance market in Pennsylvania,” the company said. “In the United States, MAPFRE is ranked among the top 20 private passenger automobile insurance companies by A.M. Best Company.”
By region, Latin America generates the most business for MAPFRE (44.3 percent), with income of nearly $13.1 billion, followed by Europe, where revenue has risen to nearly $13.1 billion (44 percent of total revenue), company data shows.
Among MAPFRE’s strategic objectives for the next three years are increasing total revenue to more than €30 billion, maintaining a combined ratio below 96 percent, and continuing to pay dividends to shareholders at current levels, the company said.
MAPFRE, which operates in 47 countries on five continents, recorded net income of nearly $1.05 billion in 2013, an 18.7 percent increase over 2012. Revenue rose to nearly $34.4 billion, an increase of 2.3 percent over 2012, and premiums grew by 1.2 percent to more than $29.94 billion.
At the same time, MAPFRE’s net equity amounted to nearly $10.4 billion, an increase of 0.3 percent over 2012, and total managed assets rose to more than $87.8 billion, representing an increase of 2.2 percent over the prior 12 months.