2024-02-14 17:59:06 ET
Mapfre, S.A. (MPFRF)
Q4 2023 Results Conference Call
February 14, 2024 06:30 AM ET
Company Participants
Leandra Clark - Deputy Head, IR
Antonio Huertas - CEO
Fernando Mata - Group CFO
Felipe Navarro - Deputy General Manager of Finance
Presentation
Leandra Clark
Good afternoon, and welcome to MAPFRE's full year 2023 activity update. This is Leandra Clark, Head of Investor Relations. We want to especially welcome those of you who've joined us here today in person and we would also like to thank those who have taken the time to connect online.
It's a pleasure to have here with us Antonio Huertas, MAPFRE's CEO. He will share some opening remarks and walk us through business trends. It's also a pleasure to have Fernando Mata, the Group CFO, who will go over the main financials. Felipe Navarro, Deputy General Manager of the Finance area, will give an update on capital and investments.
As you're aware, the new IFRS 17 & 9 accounting standards entered in force just January 1 of last year. Given the lack of a long track record in addition to the transition impacts, comparisons can still be quite challenging, which is why it's important to continue presenting our local homogenized figures as well.
We have reported very detailed disclosures of these different sets of accounts just this morning. They have very different sensitivities you'll see when you look at them. And that's why it's important that we continue giving this dual reporting in detail. And we're going to continue to do so in order to meet the different needs of all our stakeholders. Local accounting results will be presented first, and then Fernando will provide a deep dive of the IFRS 17 & 9 figures.
Before we begin, just a few reminders. Interpretation services are available, both here and at home. So feel free to choose the language you prefer, either English or Spanish. Some of the Q&A session, we'll be free to answer questions in Spanish, and it will be translated for those of you online.
And now let me turn the call over to Antonio. The floor is yours.
Antonio Huertas
Thank you, Leandra. Good afternoon, everyone. It's a great pleasure to be here with you once again after the closing of accounting for 2023 year.
Let me begin by giving you a brief overview of last year. Overall, 2023 was an excellent year for MAPFRE. We are growing more than ever despite the high level of global uncertainty, thanks to diversification of our business, both by product and geography.
We closed the year with the highest level of premiums and revenue ever. This record is even more remarkable when considering how challenging 2023 was with wars, political and economical challenges and more issues, as you already know. Without a doubt, increasing prices had a lot to do with the higher premiums and earnings, but we are also seeing very solid underlying business growth.
Although inflation boosted revenue, it was also a headwind for technical profitability. Nevertheless, despite this challenge, we were able to substantially improve our results with relevant steps forward in most businesses and markets with life business, Brazil and Reinsurance leading the profitable growth.
Our main KPIs are further proof of these advantages. The net result, ROE and the combined ratio are improving, even though we are still working on returning to profitability in Auto. Furthermore, after so many years with low interest rates, financial income is now a tailwind.
And of course, I would like to highlight a fair commitment to MAPFRE's more than 200,000 shareholders with an attractive and sustainable dividend remuneration. We are especially proud to announce that this year we have raised the final dividend to €0.09 to reach the highest level in the last five years....
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Mapfre, S.A. (MPFRF) Q4 2023 Earnings Call Transcript