Slide 1: 9M 2020 Results Analyst & Investor presentation
9M 2020 Results Analyst & Investor presentation October 30th, 2020
Slide 2: Key highlights
Key highlights Insurance units performing well > ‐ Lower frequency in P&C lines, mainly in Motor, offsetting COVID-19 related losses and a fall in financial results COVID-19 P&L impacts > ‐ Largest impact is on the top-line due to confinement measures, lower economic activity, currency depreciation
Slide 3: Key Figures > 9M 2020
Key Figures > 9M 2020 Δ at constant 9M 2020 Δ exchange rates Revenue 19,051 -11.9% -6.2% Total written and accepted premiums 15,550 -11.9% -5.5% - Non-Life 12,439 -8.3% -2.6% - Life 3,111 -23.8% -15.1% Non-Life Combined Ratio - MAPFRE S.A. 95.2% -1.1 p.p Non-Life Loss Ratio 66.3% -1.6 p.p Non-Life E
Slide 4: Adjusted attributable result
Adjusted attributable result 9M 2019 9M 2020 Δ (mn) Δ (%) Attributable result 462.9 450.4 (12.5) -2.7% NatCat claims (30.0) (65.5) (35.5) (1) Direct insurance operations (25.6) (25.6) (2) MAPFRE RE (30.0) (39.9) (9.9) COVID-related claims (MAPFRE RE) (57.0) (57.0) Goodwill writedowns (3) (65.6) 65.6
Slide 5: Key figures > by business unit
Key figures > by business unit Premiums – Breakdown by business unit Attributable result Premiums Combined ratio ROE (2) ASISTENCIA 9M 2020 Δ mn Δ% 9M 2020 Δ% 9M 2020 Δ p.p. 9M 2020 Δ p.p. 2.8% IBERIA 333.7 (15.5) -4.4% 5,313 -10.9% 92.5% -1.4 p.p 11.3% -1.3 p.p IBERIA of which: MAPFRE ESPAÑA* 207.1
Slide 6: MAPFRE RE > Continuing to generate above market returns with lower volatility
MAPFRE RE > Continuing to generate above market returns with lower volatility throughout the cycle Q3 highlights Combined ratio – MAPFRE RE vs. industry average (%) ‐ Resilient standalone combined ratio of 95.3% in 110.1 106.3 Q3, in a quarter marked by high NatCat and large 104.0 103.2 claims activ
Slide 7: MAPFRE RE > Resilient third quarter, despite high large and mid-sized claims frequency
MAPFRE RE > Resilient third quarter, despite high large and mid-sized claims frequency Main large losses* – 9M 2020 Key highlights NatCat claims 152.0 ‐ Large losses of €302 mn in 9M 2020 compared of which: to €166 mn in 9M 2019, exceeding full year Puerto Rican earthquakes 56.7 budget of which: Glo
Slide 8: MAPFRE RE > Strong underlying profitability, with capacity and support in place
MAPFRE RE > Strong underlying profitability, with the capacity and support in place to continue operating in a positive market environment Complete review of the reinsurance portfolio during Q2 and Q3 > ‐ Very strong underlying portfolio quality and diversification, with no need for restructuring ‐
Slide 9: Shareholders’ equity
Shareholders’ equity Change in shareholders’ equity (€ mn) Currency conversion differences (€ mn) Sensitivity to 1 09.30.2020 Δ % Δ currency pp move in currency Balance at 12/31 previous year 8,854 Total -1,890** -650 - Result for the period 450 of which: Dividends -262 US dollar 389 -101 -4.3% 23 N
Slide 10: Capital structure & credit metrics
Capital structure & credit metrics Capital structure (€ bn) Solvency II position (€ mn) Leverage (1) 22.7% 24.3% 12.31.2019 06.30.2020 13.1 Eligible Own Funds (EOF) 8,976 8,692 12.7 0.8 Solvency Capital Requirement (SCR) 4,805 4,730 1.0 1.0 1.0 EOF-SCR 4,171 3,962 1.1 1.1 Solvency II ratio 186.8% 18
Slide 11: Assets under management - breakdown
Assets under management - breakdown Market value Breakdown by Asset Class 12.31.2019 09.30.2020 %Δ 12.31.2019 09.30.2020 Government fixed income 30.1 28.9 -4.1% 56.2% 55.9% Spain 18.2 17.9 -1.4% 34.0% 34.7% Italy 2.9 3.0 3.0% 5.4% 5.8% Rest of Europe 2.2 2.0 -9.2% 4.1% 3.9% United States 1.6 1.6 0.2
Slide 12: Investment portfolios – additional information
Investment portfolios – additional information Euro area - fixed income portfolios - actively managed1 Other main regions & units - fixed income portfolios Market value (€bn) Accounting Market yield Modified Market value (€bn) Accounting Yield Modified Yield (%) (%) duration (%) (%) duration (%) 12.
Slide 13: Closing remarks
Closing remarks Insurance units (€610 mn net result, +7.5%) > outstanding performance with combined ratio of 93%, with lower frequency in Motor in main regions and restructuring efforts, offsetting negative COVID-19 impacts and NatCat ‐ IBERIA (€334 mn, -4.4%) > resilient growth in key Non-Life segm
Slide 14: 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/ Natalia Núñez Arana Leandra Clark Marta Sanchidrián Fernando García de la
Slide 15: Terminology
Terminology Revenue Top line figure which includes premiums, financial income, and revenue from non-insurance entities and other revenue Combined ratio – Non-Life Expense ratio + Loss ratio Expense ratio – Non-Life (Operating expenses, net of reinsurance – other technical revenue + other technical e
Slide 16: Disclaimer
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 development, its results and its divi