Mapfre restructures global risks business

Mapfre has reorganised its global risks business, designed to increase the capacity for large commercial risks. The insurer said Mapfre Global Risks will continue to be the business unit dedicated to global clients. “As part of this process, Mapfre Global Risks will continue to be Mapfre’s business unit specialising in providing comprehensive and innovative insurance solutions to large companies, multinational companies and businesses in global activity sectors,” said Mapfre. “On behalf of the group, it will underwrite the large risks business, and will focus its activities on operations where Mapfre assumes the business lead and offers a maximum-quality service.” It explained that under its new configuration, Mapfre Global Risks will operate in conjunction with the group’s insurers to manage the large-risks business, with responsibility for technical aspects, handling claims and provision of services. The issuing process will be performed by the Mapfre companies in the various countries, and reinsured by Mapfre Re. Mapfre also explained that Mapfre Global Risks will transfer its reinsurance business to Mapfre Re, and its insurance business to Mapfre Spain. Mapfre Re will assume the operations subscribed by Mapfre Global Risks in different countries of the European Union. In this way, said Mapfre, branches in the UK, France and Italy will be integrated into the structure of Mapfre Re, while the German branch will cease operations on 1 October 2018. Mapfre’s chairman and CEO, Antonio Huertas, said it will allow for greater optimisation of the group’s capital and resources, and increased efficiency through economies of scale. “All this will give Mapfre greater capacity available for the large-risks insurance business, and will contribute to offering a better service to Mapfre’s global clients,” he explained. Mapfre Re will be the vehicle for the transfer and administration of global risks, consolidating its role as the sole reinsurer in the group. “For its part, Mapfre Re is strengthening its role as the sole reinsurer for the risk types managed by Mapfre Global Risks, leveraging its larger scale and increased portfolio diversification, which will lead to an increase in the size of its business. This also boosts its service capacity for its clients and broadens its range of solutions to lines and businesses in which it did not operate up until now,” said the group. It stressed that Mapfre Re will continue to ensure the strict separation of the reinsurance work it carries out for the various Mapfre insurance companies and the business coming from other ceding companies. Mapfre said the restructuring of its global risks business “will enable it to increase its management and business capacity for this type of risk, while also bringing greater financial stability and efficiency to the group, with the ultimate goal of moving forward in its efforts to offer a better service to its clients”. The new structure is expected to be fully operational by January 2019.

Mapfre restructures global risks business

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