Mapfre Sa · BME:MAP
Mapfre Sa — FY2022 Earnings Presentation
28 slides from Mapfre Sa's earnings presentation, Feb 9, 2023
Slide 1: CNMV Other Relevant Information notice
Madrid, February 9, 2023 SPANISH SECURITIES AND EXCHANGE COMMISSION (CNMV) In accordance with article 227 of the Recast Text of the Securities Market Act, MAPFRE S.A. (MAPFRE) hereby gives notice to the Spanish Securities and Exchange Commission of the following OTHER RELEVANT INFORMATION Please fin
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Slide 3: Results 2022: Very Demanding Environment
RESULTS 2022 2022 Geopolitical risks (Ukraine) Post-pandemic economic environment High inflation and disruptions to supply chains Interest rate rises, VERY market volatility 2
Slide 4: Solid business model and strength of its balance sheet
RESULTS 2022 MAPFRE continues demonstrating a SOLID BUSINESS MODEL and the STRENGTH OF ITS BALANCE SHEET Diversification based Highest ever revenue ESG on three pillars: figure for MAPFRE management geographic, business and largest premium in investments and the balance sheet volume in 5 years Techn
Slide 5: Key Figures
KEY FIGURES ATTRIBUTABLE REVENUE PREMIUMS EARNINGS 29,510 24,540 642 +8.3% +8.7%* +10.8% -16.1% 98% 8.2% 216.8% NON-LIFE ROE SOLVENCY II RATIO** COMBINED RATIO 4 *Excluding BANKIA and two-year Mexico policy, at constant exchange rates / **Data to September 2022
Slide 6: Commitment with Shareholders
ü COMMITMENT WITH SHAREHOLDERS DIVIDEND DIVIDEND PAID IN 2022 2022 € 447 M 14.5 cents per share TOTAL € 447M 2021 € 416 M 2020 € 416 M FINAL DIVIDEND 8.5 cents 2019 € 447 M DIVIDEND YIELD BASED ON AVERAGE SHARE PRICE 8.3% 2018 € 447 M 5
Slide 7: Fernando Mata
Fernando Mata
Slide 8: COVID Claims
COVID CLAIMS 323 460 € 899M Total COVID impact 116 Claims are down to a quarter of what they were one year ago 2020 2021 2022 BUSINESS LINES 2021 2022 LIFE PROTECTION 279 50 HEALTH 89 20 OTHER LINES 93 46 TOTAL ACCUMULATED 460 116 7 Figures in million euros
Slide 9: Revenues
REVENUES CONSOLIDATED REVENUES CONSOLIDATED REVENUES 19,342 €29,510M +8.3% +10.8%* 7,658 5,912 5,199 2,544 2,426 +2.1%* NON-LIFE LIFE FINANCIAL OTHER INCOME 2,481 2,025 1,823 +12% +6.4% -8.0% +3.7% GENERAL AUTOMOBILE HEALTH & LIFE LIFE TOTAL PREMIUMS P&C ACCIDENT PROTECTION SAVINGS €24,540M +10.8% +
Slide 10: Earnings Breakdown
EARNINGS BREAKDOWN ROE 8.2% 823 722 642 -147 -314 -442 NON-LIFE LIFE OTHER CONCEPTS* TAXES NON-CONTROLLING NET EARNINGS INTERESTS -23.2% +75.2% -16.1% 2021 2022 Hyperinflation (12.5) (41.2) Corporate transactions 62.6 18.5 ADJUSTED EARNINGS 715.1 664.8 -7% ADJUSTED ROE 8.4% 8.4% 9 Million euros / *I
Slide 11: Non-Life Combined Ratio and Life Protection
NON-LIFE COMBINED RATIO AND LIFE PROTECTION DECEMBER DECEMBER DECEMBER COMBINED RATIO 2020 2021 2022 AUTOMOBILE 91.7% 100.8% 106.1% GENERAL P&C 95.0% 91.8% 87.9% HEALTH & ACCIDENT 94.1% 100.1% 100.1% TOTAL NON-LIFE 94.8% 97.5% 98.0% LIFE PROTECTION 85.4% 94.6% 83.1% 10
Slide 12: Premiums and Earnings by Business Unit
PREMIUMS AND EARNINGS BY BUSINESS UNIT INSURANCE MAPFRE RE ASISTENCIA 7,626 LATAM €20,508M +13% €7,221M +15% 8,976 +25% PREMIUMS 5,671 4,852 2,117 2,007 2,590 1,317 1,551 214 IBERIA BRAZIL LATAM NORTH LATAM SOUTH NORTH AMERICA EURASIA REINSURANCE GLOBAL RISKS ASISTENCIA 0.4% +45% -3% +23% +25% -3% +
Slide 13: Group Overview
GROUP OVERVIEW TOTAL ASSETS 63,854 €59,626M 59,626 -6.6% DECEMBER 2021 DECEMBER 2022 SHAREHOLDERS’ EQUITY 8,463 €7,289M 7,289 -13.9% 642 -447 -1,756 343 44 RESULT FOR DIVIDENDS UNREALIZED CURRENCY OTHER DECEMBER 2021 CONVERSION DECEMBER 2022 THE PERIOD CAPITAL GAINS DIFFERENCES 12 Million euros
Slide 14: Investments and Cash
INVESTMENTS AND CASH INVESTMENT PORTFOLIO FIXED INCOME 27,185 €41,388M SOVEREIGN DEBT 19,779 -10.3% Spain Rest of Europe 8,903 4,230 78.6% USA 1,009 Brazil 2,734 FIXED INCOME Latin America - Other 2,005 AND OTHER Other countries 899 CORPORATE DEBT 7,406 Investment portfolio 41,388 -10.3% 10.2% 6.2%
Slide 15: Capital and Solvency
CAPITAL AND SOLVENCY CAPITAL STRUCTURE €11,295M SOLVENCY II RATIO *Data to September 2022 216.8%* 74% EQUITY 7.6% Tier 1 SENIOR DEBT 8,357 (84%) 14.4% SUBORDINATED 3.9% DEBT BANK DEBT Tier 2 and 3 1,479 (16%) DEBT LEVEL 26% 14 Million euros
Slide 16: Iberia
INSURANCE BUSINESS REGIONAL BREAKDOWN SPAIN 7,367 -1.3% PORTUGAL 259 +98% IBERIA 2,328 2,267 1,916 PREMIUMS €7,626M +0.4% +2.5% 816 NET EARNINGS €376M -31% COMBINED RATIO GENERAL AUTOMOBILE LIFE HEALTH AND 96.8% P&C ACCIDENT ROE +5.9% +0.4% -8.7% +4.8% 10.3% PREMIUMS BREAKDOWN 15 Million euros / *Di
Slide 17: Brazil
INSURANCE BUSINESS REGIONAL BREAKDOWN 2,722 BRAZIL PREMIUMS 1,505 €4,852M +45% +23% NET EARNINGS 623 €144M +93% COMBINED RATIO 86.9% GENERAL P&C LIFE AUTOMOBILE ROE 18.2% +58% +30% +35% PREMIUMS BREAKDOWNS 16 Million euros / *Variations in local currency
Slide 18: LATAM North
INSURANCE BUSINESS REGIONAL BREAKDOWN 1,022 LATAM NORTH 647 +8.2%* PREMIUMS €2,117M -3% 448 NET EARNINGS €46M +71% COMBINED RATIO MEXICO CENTRAL AMERICA DOMINICAN REPUBLIC 98.3% ROE 9% -22% +23% +30% PREMIUMS BREAKDOWN 17 Million euros / *Variations in local currency and excluding the two-year Mexic
Slide 19: LATAM South
INSURANCE BUSINESS REGIONAL BREAKDOWN 707 LATAM SOUTH 407 398 PREMIUMS €2,007M +23% +20% +12% 212 NET EARNINGS +18% €111M +103% +87% COMBINED RATIO 104.4% PERU COLOMBIA CHILE ARGENTINA ROE +37% +12% +17 % +15% 21% PREMIUMS BREAKDOWN FOR MAIN MARKETS 18 Million euros / *Variations in local currency
Slide 20: North America
INSURANCE BUSINESS REGIONAL BREAKDOWN 2,226 NORTH AMERICA PREMIUMS €2,590M +25% +10.9% NET EARNINGS 364 -€17M -119% COMBINED RATIO UNITED STATES PUERTO RICO 108.2% +28% +9% PREMIUMS BREAKDOWN 19 Million euros / *Variations in local currency
Slide 21: Eurasia
INSURANCE BUSINESS REGIONAL BREAKDOWN 375 368 EURASIA 336 PREMIUMS +124% 198 €1,317M -3% NET EARNINGS -€30M COMBINED RATIO GERMANY TURKEY MALTA ITALY 112.2% +1% +21% -17% -9% PREMIUMS BREAKDOWN 20 Million euros / *Variations in local currency
Slide 22: Share Price
SHARE PRICE €5,574M MARKET CAPITALIZATION at 12-31-22 MAPFRE +0.2% IBEX 35 -5.6% STOXX INSURANCE 600 -1% 21
Slide 23: Results Presentation 2022
RESULTS PRESENTATION 2022 Antonio Huertas
Slide 24: Automobile Business: Pressure on Margins
AUTOMOBILE BUSINESS AUTO COMBINED RATIO § Average premiums adjusted downwards during COVID crisis. § Increase in claim cost due to higher frequency and greater severity. § Internal costs on the rise (salaries, providers, rent, energy). § Price of reparing/replacing automobiles. § Very competitive ma
Slide 25: Strategic Plan 2022-2024 Aspirational Objectives
STRATEGIC PLAN 2022 - 2024 ASPIRATIONAL OBJECTIVES GROWTH EFFICIENCY AND TRANSFORMATION: 2023 - 2024 PRODUCTIVITY People and Sustainability PREMIUMS GENDER PAY GAP Average growth NON-LIFE COMBINED RATIO +/-1% by 2024 5% - 6% 2023- 2024 ESG INVESTMENTS ROE Average ratio 96% 90% of portfolio qualified
Slide 26: Conclusions: Where We Are
CONCLUSIONS WHERE WE ARE § An increasingly diversified company, enjoying robust growth and resilient profitability. SPAIN contines to be the leading earnings contributor. LATAM emerges as a key pillar: #1 in premiums #2 in earnings § MAPFRE RE gains importance. § Great financial strength. § Solvency
Slide 27: Conclusions: Where We Want to Go
CONCLUSIONS WHERE WE WANT TO GO § Transformation: Strategic plan. § Flexibility: We adapt to the changing environment. § Recover profitability in Automobile business. § Oportunities for growth. 26
Slide 28: @ahuertasmejias www.linkedin.com/in/antoniohuertasmejias @ahuertasmejias
@ahuertasmejias www.linkedin.com/in/antoniohuertasmejias @ahuertasmejias 27