“Transforming ourselves for growth and improved profitability” MAPFRE’s new strategic plan for the next three years
The Annual General Meeting approves the accounts for fiscal year 2018 and a dividend of 0.145 euros gross per share, meaning MAPFRE will allocate 447 million euros to remunerating its shareholders.
The new strategic plan envisages revenues of 30 billion euros by 2021 or average premium growth of 5 percent over the three years and an average ROE of 10 percent.
Digital business is forecast to grow by 41 percent over the next three years.
The Life business will be boosted, and average annual premium growth of 8 percent is envisaged.
The average combined ratio for the three years will be 96 percent.
Commitment to gender equality: MAPFRE is committed to ensuring that, as a minimum, 45 percent of vacancies in positions of responsibility will be filled by women by 2021.
Commitment to sustainability: the Group will not invest in coal-powered electricity utilities or insure new coal-related projects.
As a minimum, 3 percent of the workforce is to be composed of people with disabilities when the new strategic plan is complete.
Today, at its Annual General Meeting, MAPFRE presented the Group’s new strategic plan for the period 2019-2021, under the slogan “We’re transforming for growth and improved profitability.” This plan is underpinned by client orientation, excellence in technical and operational management and in human talent and culture, with transformation driving all these pillars, and focusing on the cornerstones underpinning Group activity: the client and business profitability.
MAPFRE plans to grow sustainably, reaching 30 billion euros in revenue by 2021, or average annual premium growth of 5 percent during the three-year period; creating more value for the shareholder, generating an average return on equity (ROE) of 10 percent; profitably boosting the Life business, with average annual growth of Life Risk premiums of 8 percent during the three-year period, at constant exchange rates.
The Chairman and CEO of MAPFRE, Antonio Huertas, emphasized that the Group will continue working on the rigorous management of risks, and pledged that the average combined ratio in the triennium will not exceed 96 percent. Similarly, fully automated transactions will rise by more than 10 million, and an advanced analytics platform will be developed to better meet client needs.
Antonio Huertas stressed that MAPFRE will continue to measure quality as perceived by the client via the NPS (index of company recommendations by clients) and that the objective is for, as a minimum, 73 percent of measured businesses to obtain an NPS higher than competitor averages in their respective markets. The Group envisages boosting digital business premiums by 41 percent over the next three years and applying solutions originating in MAPFRE Open Innovation, the Group’s open innovation platform, to one million clients.
MAPFRE will continue promoting gender equality and commits to ensuring that, by the end of 2021, at least 45 percent of vacancies in positions of responsibility will be filled by women.
With respect to diversity, as an inclusive and opportunity-oriented company, MAPFRE has set itself an objective to have people with disabilities make up at least 3 percent of its workforce.
The MAPFRE Annual General Meeting has approved the company’s accounts for fiscal year 2018, a period in which the Group produced net earnings of 529 million euros. The dividend payable against the 2018 results stands at 0.145 euros gross per share. MAPFRE is allocating a total of 447 million euros, completely in cash, to shareholder remuneration, charged against the results for 2018, resulting in a dividend yield, over the average share price, of 5.5 percent.
Both José Manuel Inchausti and Antonio Gómez Ciria were reelected as directors for a period of four years. The reelection of Luis Hernando de Larramendi, Antonio Miguel-Romero de Olano, Alfonso Rebuelta Badías and Georg Daschner as directors for a further four years was also approved.
Positioning MAPFRE as a benchmark in sustainability, innovation and trust is another challenge for the Group, and in light of this, commitments to the fight against climate change will be reinforced, including the short-term objective that operations of all MAPFRE companies headquartered in Spain and Portugal will be carbon neutral by 2021, which will represent a decrease of 61 percent in the Group’s current emissions.
The Chairman and CEO of MAPFRE announced that a public commitment emissions neutrality has been brought forward, meaning that MAPFRE will be a carbon-neutral company by 2030.
MAPFRE is putting the finishing touches to its Sustainability Plan, where among other things, the company will not invest in electricity companies deriving 30 percent or more of their revenue from coal-produced energy. MAPFRE will also cease to insure the construction of new coal-fired electricity plants or coal mines.
Redefinición de necesidad y orientación al valor
Posicionar a MAPFRE como referente en sostenibilidad, innovación y confianza es otro reto del Grupo y por ello se reforzarán los compromisos en la lucha contra el cambio climático, asumiendo como objetivo a corto plazo que todas las operaciones de las entidades de MAPFRE con sede en España y Portugal sean neutras en carbono en 2021, lo que conlleva la reducción del 61% de las emisiones actuales del Grupo.
En este mismo sentido, el presidente de MAPFRE anunció que se ha adelantado el compromiso público sobre neutralidad de emisiones para conseguir que MAPFRE sea una empresa neutra medioambientalmente en 2030.
Además, MAPFRE está ultimando su nuevo Plan de Sostenibilidad donde, entre otras acciones, la compañía dejará de invertir en empresas eléctricas en las que más del 30% de sus ingresos provengan de energía producida a partir del carbón. Asimismo, tampoco se va a asegurar la construcción de nuevas plantas de generación eléctrica que funcionen con carbón, ni la explotación de nuevas minas de este mineral.