The reinsurance arm of the Spanish insurer has made no sudden shifts in its book, but under Basilio’s leadership has steadily worked to improve its treaty book.
MAPFRE Re has emerged from a period of portfolio refinement with healthier results, according to general manager Javier San Basilio, who highlighted a stronger mix of business, growth in proportional lines, and a sharpened focus on client relationships.
Basilio emphasised that the reinsurance arm of the Spanish insurer has made no sudden shifts in its book, but under his leadership has steadily worked to improve its treaty book.
“We’ve been refining the quality of the portfolio, putting more focus on the clients with whom we felt more comfortable,” San Basilio said. “It doesn’t mean discontinuing a lot of relationships. The great majority of our clients are the same as three years ago, and in many cases our participations are larger.”
The reinsurer absorbed a modest impact from California wildfires early this year but still delivered a strong second quarter as prior efforts began to pay off. Growth has been supported by proportional business, which is contributing stronger returns.
Latin America remains central to MAPFRE as a group and also to MAPFRE Re’s strategy. The company has weathered wind losses in Mexico, floods in Brazil and smaller events in Argentina, but the region is still profitable.
“It’s a region where we feel very comfortable and we are relevant,” San Basilio explained. “It is competitive, but our multi-line approach gives us balance.”
One notable area of expansion has been life, accident and health reinsurance, he explained, where MAPFRE Re has built a specialised vertical with underwriting hubs in Madrid and across Latin America and Europe.
“This is probably the biggest difference from prior years,” San Basilio said. “We now have the technical capabilities in house to deliver more sophisticated treaties and capital solutions.”
The reinsurer is also pushing, like many of its peers, to grow in specialty lines. Agribusiness is a core strength, while cyber is being approached with caution.
“We like specialties as a diversifier and a source of growth,” San Basilio said. “But when you think of cyber, there’s a potential huge market event. We want to grow, but we can’t bring too much volatility.”
Strikes, riots and civil commotion (SRCC) within reinsurance treaties remain a challenge to price, with MAPFRE Re using sub-limits and geographic restrictions where possible. San Basilio pointed to Brazil as a potential SRCC flashpoint, but stressed the need to monitor rather than overreact.
Looking ahead to renewals, MAPFRE Re’s emphasis is on differentiation and service.
“We want to be as early as possible in the renewal cycle,” he said. “We try to anticipate as much as we can, to provide a broader, quicker and more flexible service. What we don’t like is everything being rushed in the last week of December. That doesn’t bring a constructive relationship.”
To download the full Monte Carlo RVS 2025 annual issue of GR, click here.
No comments yet