Sharp drop in the stock price of Mapfre after presenting its results.

The insurance company Mapfre experienced a sharp drop of 5.74% in its stock price after presenting its results. This was its worst session since April 2022, when it recorded a decrease of 6.53%. Throughout the day, the value dropped by almost 6%, generating high trading activity that reached highs not seen since May 2022. This decline brought Mapfre's stock price to lows not seen since October. Investors expressed concern due to pressure on the margins of non-life insurance, revealed in the company's reports. Analysts point out that these results tarnish the favorable outlook for 2024. Diego Morín from IG comments that "the results were weighed down by increased pressure on its margins." Eduardo Cabrero, analyst at Bankinter, acknowledges that premium growth is in line with expectations but highlights that the main challenge lies in the margins. He explains that the non-life combined ratio, which measures the profitability of insurance, has dropped to 97.2%, but remains far from both the company's target (96%) and estimates (96.5% for 2023). This ratio is affected by the Auto business, which records ratios above 100%, implying losses. Despite this drop in stock price, Mapfre remains one of the most profitable dividend stocks in the Ibex, with an estimated yield of over 8% for 2024. However, this year it has entered negative territory, losing 1.13%. In 2023, the company experienced an increase of 7.23%. Barclays maintained its underweight recommendation and its price target at 1.96 euros, while CaixaBank also maintained its price target at 2.15 euros, although it has a neutral recommendation.