The impact of the recent natural disasters in North America and the Caribbean will imply a net cost of between EUR150 and EUR200 million euros for MAPFRE’s attributable result for the year, according to preliminary estimates carried out by the company.
To obtain these cost estimates arising from Hurricanes Harvey, Irma and Maria, and earthquakes in Chiapas and Puebla in Mexico, the company assessed the affected areas’ impacts on MAPFRE RE’s and MAPFRE Global Risks’ accepted reinsurance risk portfolio, as well as MAPFRE’s insurance business in the USA, Puerto Rico, the Dominican Republic, and Mexico.
This extraordinary increase in expenses makes it necessary for MAPFRE to reevaluate its expectations of fulfilling its public objectives for the 2016-2018 period, specifically the 11 per cent average ROE and the 96 per cent average Combined Ratio announced in March 2016.
MAPFRE’s risk management policy considers the occurrence of events of even greater intensity than those recorded these past weeks, as well as their concurrence in the same year. MAPFRE has adequate protection in place to cover the claims that may arise from these events.
Further, MAPFRE maintains additional protection in force for catastrophic events for the remainder of 2017. The company says its catastrophic risk protection model assumes that, if exceptional new events occurred during the remainder of the year, they would have a minor additional impact.
