Value for MAPFRE shareholders: “More than 4 billion euros in dividends paid out over 10 years, equivalent to 80% of the company’s capitalization”
“The price is what you pay; the value is what you receive.” This statement, attributed to Warren Buffett, sums up precisely what Fernando Mata, MAPFRE CFO and Member of the Board, sought to convey at the 16th edition of the Cycle of companies that provide shareholder value, which this year focused on Companies with high dividends and growth.
When speaking about the insurance company and its approximately 180,000 shareholders, Mata highlighted the stability of “the results and also the payout (percentage of profit distributed to shareholders), despite the volatility that continues to exist in the market price.” Moreover, this payout, which has ranged from 60% to over 80%, has remained steady over the last five years despite the impact of weather-related events on the Latin American business, Covid-19, and the recent spike in inflation. In fact, according to data as of September 30, the dividend yield for the last twelve months stands at 8.3%, having remained above 5% since 2018.
Mata recalled that, in total, MAPFRE has distributed €4.2 billion in dividends, always in cash, which is equivalent to 80% of the company’s current market capitalization. “Maintaining a sustainable dividend, which we expect to continue in the coming years, has been possible thanks to the stability of our results,” he added. And this, despite the fact that the MAPFRE Group executive claimed that “the years ahead will continue to be difficult, but MAPFRE has alternative means of revenue generation. We can move other levers.”
In addition to these alternative sources, the company is benefiting from currency exchange, which has a very positive impact in strategic markets. “We have enjoyed tailwinds in Brazil and in the dollar. We expect reinvestments of bonds from these countries at higher rates to help us offset the drop in capital,” he explained.