October 2, 2022

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UPDATE 2-Insurance company Mapfre’s earnings falls as pandemic hits small business

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(Adds detail, share rate)

MADRID, Feb 11 (Reuters) – Spanish insurer Mapfre on Thursday claimed a 14{9e6a73ef7eb6fa22b1de79554ca535a2a0aaa70d898e937e26eb250763832f63} fall in 2020 web gain, hit by a pandemic-pushed increase in health care statements while travel constraints contributed to a fall in demand from customers for other insurance policy solutions.

The firm also projected that the snow storm Filomena that hit central Spain previous month would end result in following-tax losses of in between 20 and 25 million euros.

Mapfre shares fell around 3.5{9e6a73ef7eb6fa22b1de79554ca535a2a0aaa70d898e937e26eb250763832f63} and were the worst performers in the 35 blue-chip stocks bundled in the IBEX index, which was down .3{9e6a73ef7eb6fa22b1de79554ca535a2a0aaa70d898e937e26eb250763832f63}.

The insurer claimed the pandemic hit automobile insurance, lifestyle include and price savings as perfectly as vacation insurance coverage, although desire for overall health go over improved.

“As a consequence of the lockdown of population, the product sales of new insurance plan fell, which led to a reduction of premiums,” Mapfre reported.

It experienced to pay back more than 367 million euros in statements related to COVID-19, mainly at its reinsurance and wellness insurance plan divisions.

The firm also wrote off 132 million euros in impairments from its Italian, Turkish and Indonesian units as business enterprise in all those nations is unlikely to get better in the brief time period.

Mapfre’s web financial gain fell to 527 million euros ($639 million) previous calendar year as in general rates slid 11{9e6a73ef7eb6fa22b1de79554ca535a2a0aaa70d898e937e26eb250763832f63} to 20.5 billion euros.

Analysts experienced on typical anticipated revenue of 612 million euros in a poll by Refinitiv.

The effects ended up an “overall unfavorable for the stock as web gain came under consensus estimates,” brokerage CM Capital Markets claimed in a note to investors.

Mapfre’s board programs to ask shareholders to approve a dividend slash to 13.50 euro cents on 2020 success, down from 14.50 euro cents a year earlier.

$1 = .8245 euros Reporting by Inti Landauro, Tomas Cobos and Joanna Jonczyk-Gwizdala Modifying by Andrei Khalip and Jane Merriman