MAPFRE RE, the reinsurance arm of Spanish insurer MAPFRE, delivered record profit of €381 million in 2025, marking a 17.2% increase as benign catastrophe activity in the second half offset California wildfire losses and propelled the division to its strongest-ever result.
The performance contributed to parent company MAPFRE breaking through the €1 billion profit threshold for the first time in its 90-year history. The Madrid-based insurer reported group net profit of €1.1 billion for 2025, up 19.6% as improved technical performance across all regions drove the milestone year.
MAPFRE RE's premium volume reached €8.4 billion, virtually flat with a 0.2% increase constrained by U.S. dollar depreciation. The reinsurance business generated €6.6 billion in premiums, rising 1.2%, whilst global risks produced €1.8 billion, declining 3.6%.
The division's combined ratio improved to 91.2%, a 2.4 percentage point decrease from 93.6% in 2024, despite reserve strengthening conducted during the year. However, the metric still lags Europe's largest reinsurers by a significant margin.
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Fitch Ratings noted the record-low average combined ratio for Europe's big four reached 81.5% in the first half of 2025.
SCOR, which holds fifth place in NMG Consulting's European rankings just ahead of sixth-place MAPFRE RE, posted quarterly combined ratios of 85% in Q1, 82.5% in Q2, and 80.9% in Q3 of 2025, illustrating the profitability gap MAPFRE RE faces against immediate competitors.
The 2025 result caps a remarkable turnaround from pandemic-era struggles. MAPFRE RE earned just €123 million in 2022, with management highlighting the "spectacular evolution" of results despite challenges from high inflation and catastrophic events.
Profit surged 70.6% to €244.6 million in 2023 even as the Turkish earthquake and Hurricane Otis inflicted a combined €153 million impact. The combined ratio improved to 95.6% that year, supported by the recovery of tariffs in the reinsurance market, particularly for catastrophe covers.
The momentum accelerated in 2024 with historic results of €325 million as the combined ratio tightened to 93.6%. The 2025 profit of €381 million therefore represents more than a three-fold increase over three years.
The California wildfires in the first quarter represented the most significant loss event for MAPFRE RE in 2025. "Thanks to prudent management and the absence of Cat events" in the fourth quarter, the company posted results that met expectations, according to its activity report.
Investment returns bolstered performance, with the non-life financial result increasing 17% year over year as the portfolio benefited from prevailing market conditions.
