Mapfre Sa · BME:MAP
Mapfre Sa — 6M 2023 Earnings Presentation
22 slides from Mapfre Sa's earnings presentation, Jul 28, 2023
Slide 1: Activity Update – Analyst & Investor presentation 6M 2023
Activity Update Analyst & Investor presentation 6M 2023 July 28th 2023 1
Slide 2: Disclaimer
DISCLAIMER MAPFRE S.A. (MAPFRE) hereby informs that the figures in this activity update report, unless stated otherwise, are presented under the accounting principles in force in each country, homogenized for comparison and aggregation purposes. This document is for information purposes only and its
Slide 3: Key Highlights
ACTIVITY UPDATE – 6M 2023 KEY HIGHLIGHTS INSURANCE LIFE NON-LIFE AUTO Excellent growth (+29%) Slight improvement in the combined Focus on tariffs and underwriting to and improved profitability (+16%) ratio with significant volatility by return to profitability. Countries such line and by region. Pre
Slide 4: Key Figures
ACTIVITY UPDATE – 6M 2023 KEY FIGURES 14,350 17,026 +14.7% +15% 317 -6.1% PREMIUMS REVENUE NET RESULT 97.1% -1.3 p.p 198.1% NON-LIFE SOLVENCY COMBINED RATIO RATIO* 4 Million euros. / *Data at March 2023.
Slide 5: Premiums: €14,350M, +14.7%
ACTIVITY UPDATE – 6M 2023 PREMIUMS TOTAL PREMIUMS REVENUE €14,350M +14.7% +15.1%* +14.8% +4.4% +10.7% +12.4% +62.4% MAIN LINES INSURANCE +11.2% +29.4% 5 Million euros. / * At constant exchange rates.
Slide 6: Key Figures by Regions and Business Units
ACTIVITY UPDATE – 6M 2023 KEY FIGURES KEY FIGURES BY REGIONS AND BUSINESS UNITS ROE (main markets/units) 6M 2023 Premiums Net result Non-Life Combined ratio 6M 2023 Δ% 6M 2023 Δ % 6M 2023 Δ% IBERIA 9.9% IBERIA 5,137 21.3% 122.7 -33.2% 98.9% 1.5 p.p BRAZIL 23.7% BRAZIL 2,450 9.4% 120.0 171.8% 78.6% -
Slide 7: Key Figures > Auto
ACTIVITY UPDATE – 6M 2023 KEY FIGURES > AUTO Premiums Δ in insured units YTD Attributable result 6M 2022 6M 2023 Δ% (thousands) 6M 2022 6M 2023 MAPFRE GROUP 2,944 3,074 4.4% -30 -0.2% 0.1 -36.1 IBERIA 1,113 1,166 4.8% -29 -0.5% 15.9 -9.2 NORTH AMERICA 737 771 4.7% -34 -2.3% 2.9 -23.6 BRAZIL 312 317
Slide 8: Capital Position & Credit Metrics
ACTIVITY UPDATE – 6M 2023 CAPITAL POSITION & CREDIT METRICS Leverage Ratio (%) 25% Reference 12.31.2020 12.31.2021 12.31.2022 06.30.2023 %Δ 23% framework Shareholders' equity 8,536 8,464 7,289 7,683 5.4% Non-controlling interests 1,302 1,203 1,071 1,149 7.3% Total debt 2,994 3,092 2,935 2,979 1.5% S
Slide 9: Assets Under Management
ACTIVITY UPDATE – 6M 2023 ASSETS UNDER MANAGEMENT Market value 06.30.2023 %Δ Government fixed income 21.2 7.3% Other investments Spain 9.1 2.6% 5.9% Italy 2.7 10.5% Unit-Linked Government fixed Rest of Europe 1.6 -10.5% 7.6% income 50.0% United States 1.4 35.9% Cash Brazil 3.0 10.4% 4.7% Rest of LAT
Slide 10: Investment Portfolio
ACTIVITY UPDATE – 6M 2023 INVESTMENT PORTFOLIO Eurozone – Fixed income portfolios – Active management Market value Accounting Market yield Modified (€bn) Yield (%) (%) duration (%) 12.31.2022 3.00 2.16 3.60 8.97 IBERIA NON-LIFE* 06.30.2023 3.15 2.28 3.73 8.58 12.31.2022 3.26 1.87 4.04 3.46 MAPFRE RE
Slide 11: Main KPIs - June 2023
IFRS 17&9 MAIN KPIS - June 2023 KPI Local accounting (1) IFRS 17&9 (Local accounting (1)/IFRS 17&9) €mn €mn Premiums 14,350 - Insurance revenue - 11,993 Net result 317 300 Total assets 62,932 53,366 Shareholders’ equity 7,683 8,184 Technical provisions/ 44,002 37,018 Insurance contract liabilities C
Slide 12: IFRS 17&9 Reconciliation P&L – June 2023
IFRS 17&9 RECONCILIATION P&L – June 2023 IFRS 17 IMPACTS: IFRS 9 IMPACTS: (17) 0 Million euros * Homogenized local accounting criteria were obtained from the financial statements prepared by MAPFRE Group companies, according to the applicable accounting principles in each country. In order to achiev
Slide 13: IFRS 17&9 Reconciliation of Shareholders' Equity – June 2023
IFRS 17&9 RECONCILIATION OF SHAREHOLDERS’ EQUITY – June 2023 IFRS 17 IMPACTS: 479 Million euros * Homogenized local accounting criteria were obtained from the financial statements prepared by MAPFRE Group companies, according to the applicable accounting principles in each country. In order to achie
Slide 14: Closing Remarks
CLOSING REMARKS Focus on Life in LATAM Record growth in Geographical and business Open to growth opportunities: premiums and revenue diversification: Life, Brazil and Insignia Life in Mexico reinsurance lead profitable growth Auto business on the path to profitability. Very positive environment for
Slide 15: Annex
929 MAPFRE Annex
Slide 16: IFRS 17&9 Balance Sheet 6/30/2023 vs. 12/31/2022
IFRS 17&9 BALANCE SHEET 6/30/2023 vs. 12/31/2022 ASSETS EQUITY AND LIABILITIES 12.31.2022 06.30.2023 %∆ 12.31.2022 06.30.2023 %∆ INTANGIBLE ASSETS 2,790 2,791 0.1% EQUITY 8,870 9,314 5.0% PROPERTY, PLANT AND EQUIPMENT 1,303 1,285 -1.3% Equity attributable to the controlling company's shareholders 7,
Slide 17: IFRS 17&9 Shareholders' Equity - June 2023
IFRS 17&9 SHAREHOLDERS’ EQUITY - June 2023 Balance at 1 January 2023 7,797 Conversion differences 132 Change in market value of financial assets 272 Change in technical provision valuation (Life Savings and Burial) (71) Other 8 Income and expenses recorded in OCI: 341 Result 300 Dividends (262) Equi
Slide 18: IFRS 17&9 P&L - June 2023
IFRS 17&9 P&L - June 2023 P&L JUNE 2023 VS. JUNE 2022P&L JUNE 2023 VS. JUNE 2022 6M 2022 6M 2023 %∆ INSURANCE REVENUE (+) 10,960 11,993 9% JUNE 2023 – BREAKDOWN BY REGION2023 VS. JUNE 2022 Release of liability for remaining coverage 10,888 11,891 9% Local IFRS 9&17 • Claims and other expected insura
Slide 19: Annex: IFRS 17 – Valuation approaches
Annex: IFRS 17 – Valuation approaches Assesses fulfillment cash flows using a dynamic calculation, updating Based on technically defined directives, MAPFRE believes Building hypotheses with each calculation, and recognizing expected profit that, in general, it will assess insurance and reinsurance B
Slide 20: Annex: IFRS 17 – Valuation approaches
Annex: IFRS 17 – Valuation approaches Valuation approach Line of business Liability Asset Burial Building Block Approach Life matched Variations in yield curve (risk-free curve ≈100% Fixed Income portfolios (BBA) Life Savings w/o PS > + spread) reflected in OCI measured at FVOCI with recycling in P&
Slide 21: Investor Relations
INVESTOR RELATIONS For further information, please contact or visit: Email: IR@mapfre.com Telephone: (+34) 91 581 23 18 Corporate website: www.mapfre.com Financial documentation center: www.mapfre.com/en/financial-information/ Felipe Navarro Leandra Clark Leslie Hoffman Natalia Chavarría Lidia Bermú
Slide 22: Terminology
TERMINOLOGY Combined ratio – Non-Life Expense ratio + Loss ratio Expense ratio – Non-Life (Operating expenses, net of reinsurance – other technical revenue + other technical expenses) / Net premiums earned Loss ratio – Non-Life (Net claims incurred + variation in other technical reserves + profit sh