Spanish insurer Mapfre has reported a net income of €471m ($497.42m) for the first nine months of 2023, an increase of 3.6% compared with €488m a year ago.

The dip was caused by a writedown of €75m by the insurer for its business in the US as higher interest rates and surging inflation impacted its auto insurance business.

Excluding the writedown, Mapfre’s net income for the period stood at €546m, an increase of 11.7% versus a year ago.

For the nine months ending 30 September 2023, the company’s total premiums, including non-life and life, increased by 11% to €20.68bn from €18.64bn a year earlier.

Mapfre said its results also benefitted from a €46.5m “positive net impact” pertaining to arbitration over the alliance termination with Spanish bank Bankia, which was taken over by CaixaBank.

Revenue for the first nine months of 2023 was €22.20bn, down by 10.8% from €24.59bn in the same period a year ago.

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By GlobalData

In a press statement, the company said: “The 10.8% increase in revenue consolidated the trends from recent quarters and reflects both a relevant increase in business volume, as well as an improvement in financial income.”

Mapfre chairman and CEO Antonio Huertas said: “Our business continues to show robustness, both in revenue and premium growth, as well as in the result, based on a high level of diversification and ability to adapt to the context.

“Mapfre is overcoming the difficulties presented by inflation, thanks to continuous improvement based on our technical management.”

Mapfre’s premiums, which include the reinsurance and global risks business, improved by 9.3% to nearly €6.1bn.

The company said the significant increase in the combined ratio is supported by sufficient pricing in the reinsurance market.

The company also announced plans to offer an interim dividend of €0.06 per share for 2023.