S&P AND FITCH PLACE AIG RATINGS ON WATCH

Mapfre has reported higher insurance profits in the first nine months of 2020, although the Spanish insurance group posted losses at its reinsurance business. Insurance earnings rose 7.5% to €610m in the first nine months of 2020, with lower motor claims offsetting an increase in lines affected by Covid-19. Global Risks, the insurer’s specialty and corporate unit, posted a positive result of €6m and a 30% increase in premiums to just over €1bn. However, Covid-19 and catastrophe losses caused Mapfre’s reinsurance business to report a €26m loss in the first nine months, while premiums fell 3% to €3.2bn. Group earnings fell almost 3% to €450m in the period, reflecting lower investment income and catastrophe losses, including earthquakes in Puerto Rico and a typhoon in Japan. The group posted an almost 15% reduction in premiums to €12.7bn in the first nine months of 2020, although non-life premiums grew 1% to €4bn, reflecting good performance in the commercial lines, health and homeowners.