Mapfre will pay 1,100 million euros for disasters in the Caribbean, Mexico and the US

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Earthquakes and hurricanes have struck throughout the third quarter of this year. Mexico, the United States and the Caribbean countries are the main affected by this series of natural disasters. In compensation for the damages caused by these events, the Mapfre insurer must pay more than 1,100 million euros in compensation to its clients.

As announced by the insurer in September, the effects of these natural catastrophes will be 176 million euros in its income statement. In spite of everything, Antonio Huertas, as President of Mapfre underlined the important solvency and financial capacity of Mapfre to meet the requirements and compensation that must be paid to its clients.

Antonio Huertas has added that Mapfre will maintain its commitments to provide "a stable and growing remuneration over time" to its investors. In this line and defending the capacity and solvency of Mapfre, the CEO of Mapfre Re, Eduardo Pérez de Lema, has emphasized the coverage that the insurer is capable of providing against natural disasters such as hurricanes and earthquakes that have taken place in this year.

Large compensation

Going into details about the compensation, Mapfre will have to face a disbursement of 1,077 million euros for the damages caused by hurricanes Harvey, Irma and María. Of that amount, most corresponds to the devastation caused by Hurricane María (943 million euros). As for the earthquakes that occurred in the Mexican regions of Chiapas and Puebla, Mapfre will have to pay 76 million euros in compensation.

The impact on the insurer's income statement is estimated at 176 million euros, of which 136 are due to the hurricanes in the Caribbean and 29 are a consequence of the earthquakes that occurred on Mexican soil.

Organizational changes

For its part, Mapfre has also proceeded to make organizational changes in its different business areas, among which Eurasia and Mapfre USA stand out. In the United States, the insurer will stop operating in five states, while in Pennsylvania the launch of Verti, its online insurance company, has been announced.

Mapfre announced that it is restructuring its organization in the United States for profitable growth. All of this will lead you to operate in fewer states.

To improve its structure and organization in the United States, Mapfre has selected those states in which it is best positioned, seeking to take advantage of their economies of scale, as well as available infrastructures and agent networks. All of this means that Mapfre will serve states such as Connecticut, Massachusetts, Idaho, Rhode Island, New Hampshire, Maine, California, Ohio, Oregon, Florida, Arizona, Pennsylvania, Vermont and Washington. By contrast, Mapfre will abandon New York, Kentucky, New Jersey, Indiana and Tennessee.

As previously mentioned, Mapfre announced the launch of Verti for the state of Pennsylvania. This company is focused on offering insurance to digital clients. Thanks to Verti, customers will have an easy-to-use online platform.

Mapfre's organizational changes will not only affect the US market. The company also has plans for the so-called Eurasia area. By January 2018, Eurasia will integrate all European subsidiaries except Iberia. Therefore, in Eurasia there will be subsidiaries such as Emea and Apac, which correspond to the Middle East and Asia.

This reorganization has its own names, hence Nikos Antimissaris, who is currently CEO of Emea.Another of the men to be highlighted is Leire Jiménez Ayesa, the current head of Apac, who will be CEO of the UK subsidiary and the Insureandgo travel insurance company.

The changes will also affect Latin America which will create a sub-region in the northern area of ​​Latin America. This subregion will cover all operations in countries such as Honduras, Panama, Nicaragua, Costa Rica, the Dominican Republic and Guatemala. The headquarters of this area of ​​operations will be located in Panama.

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