Mapfre has announced that revenue for the first six months of this year fell by 11.8% to €13.28bn, while premiums tumbled by 12.3% to €10.98bn (£10bn).
At the end of June, the group’s total earnings were €271m (£247m), 27.7% lower than the same period the year prior.
The insurer said this performance “fell within the context” of the economic downturn caused by Covid-19, with the cost of reported claims relating to the pandemic exceeding €153m (£139.4m).
The group also saw a €1.55bn (£1.41bn) reduction in premiums, which suffered from currency devaluations, its Pemex two-year policy, and the €412m (£375) reduction in life-savings premiums in Spain.
This was again “strongly impacted” by Covid-related claims in its reinsurance unit, which amounted to almost €87m (£79m). Overall, the reinsurance business line was “most affected” by claims related to the pandemic, with an attributable net impact of €57m (£52m) on the business, of which €50m (£46m) derives from business interruption coverage and the remainder from the credit line.
Its insurance units proved more “resilient”, with earnings up by 12.7% to €429m (£390m) after direct claims in burial and health compensated for a decrease in automobile claims.
In a statement, the insurer said: “Since the beginning of the crisis, MAPFRE has mobilized resources and taken measures to guarantee both the protection of its employees and business continuity, but it is not yet possible to know the true extent of this crisis.
“However, the strength of Mapfre’s balance sheet, its high levels of capital and solvency, as well as its liquidity position and the availability of additional funding mean that the impact on the group will be limited.”