Mapfre Sa · BME:MAP
Mapfre Sa — Q1 2017 Earnings Presentation
31 slides from Mapfre Sa's earnings presentation, Apr 28, 2017
Slide 1: Financial results First quarter 2017
Financial results First quarter 2017 Analyst and Investor presentation April 28th, 2017
Slide 2: Agenda
01 Key Highlights > 3M 2017 01 KEY HIGHLIGHTS 0 2 F I N A N C I A L O V E RV I E W 03 BACKUP 2
Slide 3: Key Figures
01 Key Highlights > 3M 2017 Key Figures 3M 2016 3M 2017 Δ% Results Income 7,263.2 7,854.9 8.1% Total written and accepted premiums 6,112.9 6,674.6 9.2% - Non-Life 5,024.5 5,217.9 3.8% - Life 1,088.4 1,456.7 33.8% Net result 191.7 206.2 7.5% Balance sheet Assets under management 55,471.7 60,521.2 9.1
Slide 4: Consolidation of positive trends in main markets
01 Key Highlights > 3M 2017 Consolidation of positive trends in main markets, resilient financial income and tailwinds from main currencies Revenue +8.1% Increase in revenue supported both by solid developments in local currency in main markets as well as the appreciation of the US dollar and the
Slide 5: Growth in net result supported by cost containment and technical management
01 Key Highlights > 3M 2017 Growth in net result supported by continued improvements in cost containment and technical management Combined ratio +0.7 p.p. 96.8% 97.5% Lower expense ratio continues demonstrating strict 27.4% 26.7% cost containment policies 70.8% Improved claims experience in main
Slide 6: Stable shareholders' equity and growing assets under management
01 Key Highlights > 3M 2017 Stable shareholders’ equity and growing assets under management Shareholders’ equity -0.8% Relatively stable shareholders’ equity due to lower market volatility and currency 9,127 9,053 movements during the year with a slight decrease (-€74 mn), due to the deduction of
Slide 7: Final dividend will be fully paid in cash on June 20th
1 Key highlights 01 Key Highlights > 3M 2017 Final dividend will be fully paid in cash on June 20th, which will lead to a 12.7% increase in shareholder remuneration Payout 50.9% 50.6% 51.0% 56.5% 57.6% Dividends 431,1 446,5 400,3 400,3 paid against 338,8 results 2012 2013 2014 2015 2016 Earnings per
Slide 8: MAPFRE benefits from a well diversified business profile
01 Key Highlights > 3M 2017 MAPFRE benefits from a well diversified business profile Distribution of premiums* Distribution of attributable result* MAPFRE RE 16.0% IBERIA 55.4% APAC BRAZIL 11.2% 0.5% IBERIA LATAM NORTH 3.6% 34.4% EMEA 10.1% LATAM SOUTH 5.2% NORTH AMERICA 7.3% NORTH AMERICA 10.0% EME
Slide 9: Insurance: premiums by business unit
01 Key Highlights > 3M 2017 Tailwinds from the recovery in Spain, as well as solid growth in BRAZIL, USA and MAPFRE RE Premiums – breakdown by business unit Premiums – evolution by business unit %Δ GLOBAL RISKS IBERIA 2,387 +10.8% ASISTENCIA 4.3% 3.7% LATAM 1,998 +18.6% BRAZIL 1,203 +34.2% RE IBERIA
Slide 10: Insurance: strong improvement in results in main markets
01 Key Highlights > 3M 2017 Strong improvement in results in main markets, despite higher incidence of climatological events Attributable result by business unit % over total (1) 53.0% IBERIA 127.6 +26.9% 19.3% LATAM 46.5 -5.5% BRAZIL 26.2 +4.8% LATAM NORTH 4.6 -60.7% INSURANCE LATAM SOUTH 15.6 +25.
Slide 11: IBERIA: Solid performance in the first quarter of 2017
01 Key Highlights > 3M 2017 IBERIA: Solid performance in the first quarter of 2017 Profit before tax Improvement in results based on successful implementation of a +26.9% transformation process: Focus on profitable growth 100.6 127.6 Cost cutting Value proposition for the best clients Brok
Slide 12: IBERIA: Focus on profitable growth in Spanish Motor
01 Key Highlights > 3M 2017 IBERIA: Focus on profitable growth in Spanish Motor Premium growth at 3M 2017 - Spain Average premium growth - Spain 12M 2016 3M 2017 3.6% 5.1% 2.6% 4.0% 4.0% 3.0% 1.7% 1.4% 2.6% 0.7% 1.8% 0.5% 12M 2015 12M 2016 3M 2017 -9.0% MAPFRE Sector -10.2% Retail Fleets Total MAPFR
Slide 13: IBERIA: Strict management of the new Baremo implementation
01 Key Highlights > 3M 2017 IBERIA: Strict management of the new Baremo implementation Actions taken - Gradual transfer of increase in expected costs to tariffs throughout 2015 and 2016 prior to January Provision set to cover possible deviations due to Baremo implementation (€35 1st 2016 million
Slide 14: Agenda
01 Key Highlights > 3M 2017 01 KEY HIGHLIGHTS 0 2 F I N A N C I A L O V E RV I E W 03 BACKUP 14
Slide 15: Main drivers of variation of net result 3M 2017 vs 3M 2016
02 Financial Overview Main drivers of variation of net result – 3M 2017 vs. 3M 2016 Net result Δ Result of Life Net 3M (+€55.1 mn) result 2016 3M Δ Result of Non-Life 2017 (-€27.8 mn) 26.1 29.0 206 192 9.0 4.0 -4.7 -4.1 -17.8 -27.0 Δ Non-Life Δ Non-Life Δ Non-Life Δ Life Technical- Δ Life Technical-
Slide 16: Insurance: steady premium growth in main markets
02 Financial Overview Steady premium growth in main markets, in line with profitable growth strategy Non-Life premiums %Δ IBERIA +1.5% 1,721 Spain: Growth in Retail LATAM +14.8% 1,457 Motor and Health Brazil (Industrial Risks and BRAZIL +36.7% 838 Agricultural lines): Solid INSURANCE LATAM NORTH
Slide 17: Insurance: focus on efficiency and technical management
02 Financial Overview Strong focus on efficiency measures and technical management Combined Ratio Δ Strict cost containment strategies IBERIA 94.6% + 2.0 p.p. continue showing results, especially in IBERIA, LATAM NORTH and EMEA LATAM 98.7% -0.2 p.p. BRAZIL 98.5% -1.6 p.p. Positive claims experie
Slide 18: Lower financial income on the back of interest rate environment
02 Financial Overview Lower financial income on the back of interest rate environment in Europe and lower foreign exchange differences Net financial income – Non-Life 190.9 168.0 Higher realized gains, mainly in MAPFRE RE and IBERIA 3M 2016 3M 2017 Lower foreign exchange differences (-10.4 milli
Slide 19: Improvements in Life business thanks to commercial strategy
02 Financial Overview Improvements in Life business thanks to successful commercial strategy Premiums – Life Technical-Financial result - Life 46 457 IBERIA IBERIA 666 +45.6% 78 +68.4% 116 283 BRAZIL BRAZIL 365 +28.7% 124 +6.8% 348 8 OTHERS OTHERS 426 +22.5% 24 +186.5% 1,088 170 TOTAL 1,457 +33.8% T
Slide 20: Stability in equity base
02 Financial Overview Stability in equity base due to reduced market volatility as well as MAPFRE´s strong diversification profile Change in shareholders’ equity Shareholders’ equity – 2016 year end 9,127 Δ Financial Assets Available for Sale & others -196 Fall in value of the available for sale i
Slide 21: Asset allocation reflects financial market conditions
02 Financial Overview Asset allocation reflects financial market conditions Investment portfolio – Breakdown by asset class Cash Other investments(2) 2,504 (4.9%) 4,697 (9.3%) Mutual funds 1,830 (3.6%) Equities 1,883 (3.7%) Real Estate(3) 2,262 (4.5%) Government fixed income(1) 27,728 (54.8%) €50,63
Slide 22: Recent debt issuance has further diversified funding sources
02 Financial Overview Recent debt issuance has further diversified funding sources Capital structure Interest coverage (x) (1) 29.2 27.0 Subordinated debt 23.1 Bank financing 4% 9% Senior debt 7% €14,039 3M 2016 12M 2016 3M 2017 million Leverage (2) Equity 80% 20.1% 16.1% 14.5% Increase in leverag
Slide 23: Solid and stable capital position
02 Financial Overview Solid and stable capital position Solvency II ratio 9,616 198% 8,530 200% 8,635 197% 8,502 200% 8,627 210% 4,582 4,311 4,311 4,311 4,311 December 2015 March 2016 June 2016 September 2016 December 2016 Solvency Capital Requirement Eligible Own Funds Tier 1: €9,009 mn (94%) Tier
Slide 24: Retained earnings and market movements provide high capital generation
02 Financial Overview Retained earnings and market movements provide MAPFRE with a high level of capital generation Solvency Margin (EOF – SCR) = 4,219 Δ IFRS equity (ex retained earnings) 578 Δ IFRS retained earnings 457 Δ Forseeable dividends -63 + €814 million Δ Other Solvency II adjustments 113
Slide 25: Eligible Own Funds – December 2016
02 Financial Overview Eligible Own Funds – December 2016 IFRS equity 11,443 Participations not included under SII -212 Subsidiaries under equivalence & others -1,439 Intangible assets -3,506 Market value - real estate & others 666 Best estimate liabilities net of DACs 2,739 Forseeable dividends -292
Slide 26: Solvency Capital Requirement – December 2016
02 Financial Overview Solvency Capital Requirement – December 2016 Market 2,488 Counterparty 780 Underwriting 3,114 Diversification benefits -2,046 BSCR 4,335 Further adjustments (1) 247 Total SCR 4,582 1) Further adjustments include: Operational risks; loss absorbing capacity of technical provision
Slide 27: Diversified balance sheet and prudent ALM and investment strategy
02 Financial Overview Diversified balance sheet and business mix, as well as a prudent ALM and investment strategy Transitional measures and Market sensitivities matching & volatility adjustments Ratio at 31.12.2016 209.8% Ratio at 31/12/2016 209.8% Without transitionals for Interest rate +100 bps 1
Slide 28: Backup
01 Key Highlights > 3M 2017 01 KEY HIGHLIGHTS 0 2 F I N A N C I A L O V E RV I E W 03 BACKUP 28
Slide 29: Terminology
03 Backup Terminology Combined ratio – Non-Life Expense ratio + Loss ratio (Operating expenses, net of reinsurance – other technical income + other technical expenses) / Net premiums Expense ratio – Non-Life earned. Figures for the Non-life segment (Net claims incurred + variation in other technical
Slide 30: Investor Relations
03 Backup Investor Relations Capital Markets Director Natalia Núñez Arana +34-91-581-8664 Head of Investor Relations Antonio Triguero Sánchez Investor Relations +34-91-581-5211 Leandra Elizabeth Clark Investor Relations +34-91-581-3773 Marta Sanchidrián Cáceres Investor Relations +34-91-581-1019 Mar
Slide 31: Disclaimer
05 Calendar and contact information Disclaimer This document is purely informative. Its content does not constitute, nor can it be interpreted as, an offer or an invitation to sell, exchange or buy, and it is not binding on the issuer in any way. The information about the plans of the Company, its e