Spanish insurer Mapfre slides on profit miss

By Marta Serafinko and Natalia Siniawski

(Reuters) - Spanish insurer Mapfre fell short of analyst estimates with a 20% jump in net profit last year after car and weather-related claims cost more than expected, sending its shares down more than 5%.

The country's second-largest insurer by premiums posted a net profit of 677 million euros ($725 million) under new accounting standards. Analysts had expected earnings to reach 730 million euros, LSEG data shows.

Excluding a 75 million euro writedown related to its U.S. car insurance business, net profit was 767 million euros.

Mapfre shares were down more than 5% in late morning trade.

The company's results were buoyed by soaring profit at its Brazilian business and reinsurance arm, up 62% and 75% respectively.

Mapfre's premiums rose by 9.7% to a record 26.92 billion euros.

In the auto business, which was hit particularly hard in the U.S. by high interest rates and inflation, the combined ratio - a measure of profitability - reached 106%, showing Mapfre has paid out more in claims than it previously received in premiums.

Mapfre CEO Antonio Huertas told reporters there are still 14 countries in which the combined ratio for car insurance remains above 100%, but he expects the ratios to fall below that level towards the end of 2024.

Several disasters, such as the earthquake in Turkey and Hurricane Otis in Mexico, had a negative impact on results. The company also noted a higher frequency of weather-related events in Europe cost Mapfre 115 million euros more than in 2022.

The company also proposed to raise its total dividend to 0.15 euros per share, up from 0.145 euros a year earlier.

($1 = 0.9340 euros)

(Reporting by Marta Serafinko and Natalia Siniawski; Editing by Jason Neely and David Goodman)