Mapfre: Mixed results & pricey US acquisition

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Mapfre: Mixed results & pricey US acquisition

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Mapfre

Mixed results & pricey US acquisition

Reiterate Rating: UNDERPERFORM | PO: 3.80 EUR | Price: 4.54 EUR

Mixed results & pricey US acquisition 24 July 2026

Mapfre reported a 2Q26 net of profit of €313m, growing 6% y/y but missing consensus Equity

by 3%. Despite a miss in motor, Iberia delivered steady results while LatAm and the rest

David Barma >>

of Europe missing. Focus today however will be on the group’s >$1.5bn acquisition in Research Analyst

the US for which pricey headline acquisition multiples might disappoint. No update on BofASE (France) +33 1 8770 0756

capital return this quarter, which we expect in the next. We have an Underperform rating. david.barma@bofa.com

Nimrat Kaur >>

Research AnalystExpensive $1.5bn acquisition in the US MLI (UK)

Alongside results, Mapfre announced the acquisition of US P&C insurer Safety Insurance nimratkaur@bofa.com

for $1.54bn, financed with new debt issuances (senior and subordinated). Safety is Shanti Kang >>

present in Northeastern US and will solidify Mapfre’s strong presence in Massachusetts ResearchMLI (UK) Analyst

(n°1 share across product lines) and New England (n°1-2). The business generated $99m shanti.kang@bofa.com

of profits last year and an average of $50m the previous three. At a headline level,

Mapfre acquires the business at 15x earnings or at >16x once accounting for synergies

(cost and capital) as well as financing costs. The deal is expected to cost solvency Stock Data

c.10%pts, easily digestible from the 207% reported at Q1.

Price 4.54 EUR

Good quarter in Spain despite tick-up in motor margins Price Objective 3.80 EUR

Iberia net profit remained strong at €141m, growing nearly 20% y/y and beating Date Established 04-Nov-2025

consensus by 4%.