Mapfre ready to work with AMLO, plans Mexico expansion

Monday, March 11, 2019

The president of Spanish multilateral Mapfre, Antonio Huertas, said his firm remains committed to Mexico with continued plans for expansion and growth, even as the country experiences changes from the left-wing leadership of President Andrés Manuel López Obrador.

Huertas, in comments ahead of the Friday's shareholders meeting in Madrid, stressed that the role of businesses can complement the social strategies and plans of the new government.

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"If the decisions of the Mexican government are in line to support economic growth by trying to favor private initiative in its rightful place, trying to correct, to help, welcome," said Huertas, as reported in Mexican daily El Universal.

In his shareholder presentation, Huertas stated, "In Mexico, we will continue betting on those distribution channels contributing the greatest margin to our result, on our network of agents and bancassurance agreements, such as the one we have just negotiated with Actinver, a leading investment advisory Mexican corporation."

"In terms of improvements in operational and technical management, we will continue with plans to reduce expenses and claims and with the project to improve service to policyholders. In addition, we will continue to promote the digital channel that offers such good results in this country," added Huertas in the speech.

In the presentation of its 2018 annual report, the firm noted that its net income attributable to its northern Latin American region increased 29.3% year-on-year to 43.7mn euros (US$49.1mn) "due to the favorable evolution from Mexico," despite a 26.1% contraction of premiums in the northern Latin American region to 1.31bn euros.

According to El Universal, the general director of Mapfre Mexico, Jesús Martínez, said before the meeting that the firm's local strategy focuses on gaining more market share and growing above the average of the insurance sector in the country amid an expected economic slowdown, with contained inflation, volatility in the exchange rate and high interest rates.