Slide 1: Nine months 2012 results
Nine months 2012 results Presentation for investors and analysts 26th October 2012
Slide 2: Contents
Contents 1 Key highlights 2 Consolidated financial information 3 Business development 4 Appendix 5 Financial supplement 6 Schedule and contacts 2 No. 2012 - 21
Slide 3: Key highlights
1 Key highlights Business diversification and a prudent management approach allow MAPFRE to successfully face a very adverse economic context Revenues 19,412.6 10.5% Premiums 16,571.9 13.0% Managed savings 30,229.9 3.7% Non-life combined ratio 95.3% -1.4 p.p. ROE 11.5% -2.8 p.p. Attributable result
Slide 4: Highlights of the results
1 Key highlights Highlights of the results The international business continues to deliver on its great potential and drives the Group’s growth Organic growth of the international business, enhanced by the depreciation of the Euro Non-Life: excellent combined ratio in Spain and strong improvement in
Slide 5: Development of recurring results
1 Key highlights Development of recurring results 9M 2011 9M 2012 % Result from insurance operations 857.3 712.6 -16.9% Impact of the earthquakes in Japan and New Zealand 98.5 --- Greek fixed income --- 41.5 (1) Impairment of equities --- 90.4 Net realised gains -69.1 -38.4 -44.4% Gain from allianc
Slide 6: Maximising synergies
1 Key highlights Maximising synergies With the aim of further maximising the potential of the synergies offered by the Group’s structure, the following changes will be effective as of 1st January 2013 Creation of the SPAIN AND PORTUGAL INSURANCE DIVISION MAPFRE SEGUROS GERAIS and its Life Assurance
Slide 7: Organisational chart effective from 2013
1 Key highlights Organisational chart effective from 2013 MAPFRE S.A. SPAIN & PORTUGAL INTERNATIONAL INSURANCE GLOBAL BUSINESSES INSURANCE MAPFRE FAMILIAR MAPFRE AMÉRICA MAPFRE RE MAPFRE MAPFRE MAPFRE VIDA INTERNACIONAL ASISTENCIA MAPFRE EMPRESAS MAPFRE GLOBAL RISKS MAPFRE SEGUROS GERAIS 7 No. 2012
Slide 8: Interim dividend against the 2012 results
1 Key highlights Interim dividend against the 2012 results In light of the volatility in the economic and financial environment, MAPFRE’s Board of Directors deems it appropriate to strengthen the Group’s levels of capitalisation, liquidity and financial flexibility. Therefore, it has agreed to pay a
Slide 9: Consolidated financial information
1 Key highlights 2 Consolidated financial information 3 Business development 4 Appendix 5 Financial supplement 6 Schedule and contacts 9 No. 2012 - 21
Slide 10: Breakdown of premiums and results by line of business and geographical areas
2 Consolidated financial information Breakdown of premiums and results by line of business and geographical areas Premiums(1) Contribution to consolidated results Spain 33% Abroad 67% Segment EUR M % Non-Life Spain 255.7 35.9% Non-Life Abroad 228.9 32.1% 12.8% Life Spain 89.5 12.6% 11.5% 43.2% Life
Slide 11: Information by business areas
2 Consolidated financial information Information by business areas Contribution to premiums(1) Contribution to insurance results 9M 2011 9M 2012 9M 2011 9M 2012 Business area % % EUR M Business area % % EUR M DOMESTIC INSURANCE 38.7% 32.5% 5,772.0 DOMESTIC INSURANCE 57.7% 48.4% 345.2 MAPFRE BRASIL 1
Slide 12: Development of Non-Life insurance results
2 Consolidated financial information Development of Non-Life insurance results Non-Life business – Main business areas Premiums Underwriting result Combined ratio (1) Business area 9M 2011 9M 2012 % 9M 2011 9M 2012 % 9M 2011 9M 2012 DOMESTIC INSURANCE 3,667.8 3,499.5 -4.6% 372.3 338.4 -9.1% 88.9%
Slide 13: Development of Non-Life insurance results
2 Consolidated financial information Development of Non-Life insurance results Non-Life Account Key points 9M 2011 9M 2012 % Gross written and accepted Organic growth of the international business, 10,846.3 11,906.5 9.8% enhanced by the depreciation of the Euro, which premiums offsets the impact
Slide 14: Development of Life Assurance results
2 Consolidated financial information Development of Life Assurance results Life business – Main business areas Underwriting and financial Premiums result Business area 9M 2011 9M 2012 % 9M 2011 9M 2012 % DOMESTIC INSURANCE 2,391.3 2,272.5 -5.0% 178.8 152.1 -14.9% MAPFRE BRASIL 727.7 1,453.9 99.8%
Slide 15: Development of Life Assurance results
2 Consolidated financial information Development of Life Assurance results Life Account Key points 9M 2011 9M 2012 % Organic growth of the international business Very good performance of Life-Savings insurance through the agents’ channel in Spain, which partly Gross written and accepted 3,813.
Slide 16: Development of results from Other Business Activities
2 Consolidated financial information Development of results from Other Business Activities Other Business Activities(1) Key points 9M 2011 9M 2012 % Includes: — the fund management business of MAPFRE Operating revenues 317.1 366.7 15.6% BRASIL — the operating expenses of the financial activities
Slide 17: Consolidated result
2 Consolidated financial information Consolidated result 9M 2011 9M 2012 % Result on restatement of financial accounts -16.0 -5.4 -66.3% Result before tax and minority interests 1,277.6 1,255.1 -1.8% Taxes -328.1 -371.3 13.2% Result after tax 949.5 883.8 -6.9% Result after tax from discontinued ope
Slide 18: Balance sheet – key highlights
2 Consolidated financial information Balance sheet – key highlights 30.9.11 31.12.11 30.9.12 Goodwill 2,895.2 2,266.4 2,364.4 Value assigned to the assets included after the alliance Other intangible assets 937.5 2,450.1 2,266.6 with BANCO DO BRASIL Other fixed assets 384.4 382.0 427.1 Cash & equiva
Slide 19: Equity grew in excess of €400 million during the year
2 Consolidated financial information Equity grew in excess of €400 million during the year Statement of changes in equity Key points Equity Minority TOTAL TOTAL interests 9M 2012 9M 2011 BALANCE AS AT PRIOR YEAR END 7,042.9 2,683.7 9,726.6 7,795.8 Additions and deductions accounted for Recovery in
Slide 20: Business development
1 Key highlights 2 Consolidated financial information 3 Business development 4 Appendix 5 Financial supplement 6 Schedule and contacts 20 No. 2012 - 21
Slide 21: Domestic Insurance Division: Key highlights
3 Business development Domestic Insurance Division Key highlights 9M 2011 9M 2012 % NON-LIFE BUSINESS 9M 2011 9M 2012 % Written and accepted premiums 3,667.8 3,499.5 -4.6% Written and accepted 6,059.1 5,772.0 -4.7% Underwriting result 372.3 338.4 -9.1% premiums Underwriting and financial result 54
Slide 22: Domestic Insurance Division: highlights of the results
3 Business development Domestic Insurance Division: highlights of the results Premiums Premiums decrease as a result of the decline in demand in the Spanish market. In this environment, worthy of mention are: evolution a better performance than the market in the Motor line (-5.1% versus -5.4%), wi
Slide 23: Domestic Insurance Division: Non-Life
3 Business development Domestic Insurance Division Non-Life Premiums Combined ratio(1) 9M 2011 9M 2012 Loss ratio 79.3% 76.6% MOTOR 1,693.6 -5.1% MOTOR Expense ratio 15.7% 16.2% Loss ratio 56.9% 57.6% COMMERCIAL(2) 546.7 4.8% COMMERCIAL Expense ratio 24.2% 22.6% Loss ratio 58.8% 61.5% HOME 471.9 2.0
Slide 24: Domestic Insurance Division: Life business activity indicators
3 Business development Domestic Insurance Division Life business: activity indicators GROSS WRITTEN AND ACCEPTED PREMIUMS 9M 2011 9M 2012 % CHANGE IN FUNDS UNDER MANAGEMENT (1) 9M 2011 9M 2012 (2) Regular premiums 467.5 337.8 -27.7% IFRS technical reserves 49.4 298.3 Single premiums 1,581.5 1,560.1
Slide 25: International Insurance Division: Key highlights
3 Business development International Insurance Division Key highlights 9M 2011 9M 2012 % MAPFRE AMÉRICA 9M 2011 9M 2012 % Written and accepted 6,345.0 8,270.0 30.3% Gross written and accepted premiums 4,907.4 6,604.3 34.5% premiums Underwriting and financial result 458.8 486.0 5.9% Underwriting a
Slide 26: MAPFRE AMÉRICA: Premiums and results by countries
3 Business development International Insurance Division: MAPFRE AMÉRICA Premiums and results by countries PREMIUMS RESULTS (1) Local Local Currency Currency COUNTRY 9M 2011 9M 2012 % % 9M 2011 9M 2012 % % BRAZIL 2,470.6 3,577.1 44.8% 54.9% 367.9 360.4 -2.0% 4.8% VENEZUELA 444.3 562.6 26.6%
Slide 27: MAPFRE AMÉRICA: Highlights of the Unit
3 Business development International Insurance Division: MAPFRE AMÉRICA Highlights Consolidation of the businesses with BANCO DO BRASIL since 31.5.2011 Variation in the combined ratio due to: of the Unit – an improvement in the loss ratio in the General Insurance, Health and Accident segments –
Slide 28: MAPFRE INTERNACIONAL: Premiums and results by countries
3 Business development International Insurance Division: MAPFRE INTERNACIONAL Premiums and results by countries PREMIUMS RESULTS (1) Local Local Currency Currency COUNTRY 9M 2011 9M 2012 % % 9M 2011 9M 2012 % % USA 1,071.7 1,172.4 9.4% -0.7% 33.9 107.9 218.3% 188.7% TURKEY 210.4 279.1 32.7%
Slide 29: MAPFRE INTERNACIONAL: USA and other countries
3 Business development International Insurance Division: MAPFRE INTERNACIONAL USA Positive impact of the appreciation of the USD against the Euro(1) Decrease in production in California and New York as a result of a change in the sales strategy, targeted at improving the underwriting result in t
Slide 30: Global Businesses Division: Key highlights
3 Business development Global Businesses Division Key highlights 9M 2011 9M 2012 % MAPFRE RE 2,277.0 11.8% Premiums & operating 3,378.6 3,825.6 13.2% MAPFRE GLOBAL RISKS 867.8 6.7% income MAPFRE ASISTENCIA 680.8 28.8% Underwriting and financial 125.3 170.4 36.0% result Other non-technical result 1.
Slide 31: Global Businesses Division: MAPFRE RE
3 Business development Global Businesses Division: MAPFRE RE Key figures Key highlights 9M 2011 9M 2012 % Growth of the Property Damage lines in Latin America and Gross written and accepted the USA, as well as of the Life Assurance business in 2,037.0 2,277.0 11.8% premiums Europe and Latin Amer
Slide 32: Global Businesses Division: MAPFRE GLOBAL RISKS
3 Business development Global Businesses Division: MAPFRE GLOBAL RISKS Key figures Key highlights 9M 2011 9M 2012 % Gross written and accepted 813.2 867.8 6.7% Growth in new international markets, especially in premiums the Property Damage line Underwriting result 12.9 10.6 -17.8% Gross result(1
Slide 33: Global Businesses Division: MAPFRE ASISTENCIA
3 Business development Global Businesses Division: MAPFRE ASISTENCIA Key figures Key highlights 9M 2011 9M 2012 % Growth driven by Extended Warranty Insurance in the Operating income 528.4 680.8 28.8% USA and Travel Assistance Insurance, especially in the UK, France and China Underwriting result
Slide 34: Appendix
1 Key highlights 2 Consolidated financial information 3 Business development 4 Appendix 5 Financial supplement 6 Schedule and contacts 34 No. 2012 - 21
Slide 35: Consolidated income statement
4 Appendix Consolidated income statement 9M 2011 9M 2012 % NON-LIFE INSURANCE AND REINSURANCE Gross written and accepted premiums 10,846.3 11,906.5 9.8% Premiums earned, net of ceded and retroceded reinsurance 9,049.5 9,875.4 9.1% Net claims incurred and variation in other technical provisions -6,2
Slide 36: Profit breakdown by units and companies
4 Appendix Profit breakdown by units and companies Contribution to consolidated result Net Minority 9M 2012 9M 2011 Result interests € Million % € Million % DOMESTIC INSURANCE 345.2 345.2 494.4 MAPFRE VIDA 89.5 89.5 13.6% 104.3 13.6% MAPFRE FAMILIAR 188.6 188.6 28.8% 307.2 40.1% MAPFRE EMPRESAS 67.1
Slide 37: Breakdown of recurring results by units and companies
4 Appendix Breakdown of recurring results by units and companies Contribution to Recurring attributable consolidated result Non-recurring results result 9M 2011 9M 2012 % 9M 2011 9M 2012 % 9M 2011 9M 2012 % DOMESTIC INSURANCE 494.4 345.2 -30.2% 23.5 -74.6 --- 470.9 419.8 -10.9% MAPFRE VIDA 104.3
Slide 38: Expense and loss ratios
4 Appendix Expense and loss ratios RATIOS (1) (2) (3) Expense ratio Loss ratio Combined ratio 9M 2011 9M 2012 9M 2011 9M 2012 9M 2011 9M 2012 MAPFRE S.A. consolidated 27.2% 28.5% 69.5% 66.8% 96.7% 95.3% DOMESTIC INSURANCE 19.7% 20.2% 69.2% 69.6% 88.9% 89.8% MAPFRE FAMILIAR 19.1% 19.8% 70.9% 71.3% 90
Slide 39: Net financial income: selected information
4 Appendix Net financial income: selected information Breakdown of net financial income (before taxes) 9M 2011 9M 2012 % Net financial income, Non-life 595.0 455.0 -23.5% - of which realised capital gains and impairments 91.9 -137.3 --- - of which foreign exchange gains/(losses) -4.7 3.0 --- Net fi
Slide 40: Net financial income: selected information (contd.)
4 Appendix Net financial income: selected information (contd.) Realisation gains, impairments and other negative financial results Impairments from Other negative Impact on pre-tax Realisation gains Bankia and Cattolica financial results result 9M 2011 9M 2012 9M 2011 9M 2012 9M 2011 9M 2012 9M 2011
Slide 41: Financial supplement
1 Key highlights 2 Consolidated financial information 3 Business development 4 Appendix 5 Financial supplement 6 Schedule and contacts 41 No. 2012 - 21
Slide 42: Operating companies: Key figures MAPFRE FAMILIAR
5 Financial supplement Operating companies: Key figures MAPFRE FAMILIAR MAPFRE FAMILIAR – by lines 9M 2011 9M 2012 % 9M 2011 9M 2012 % Motor Gross written and accepted premiums 3,148.2 2,955.2 -6.1% Gross written and accepted premiums 1,785.5 1,693.6 -5.1% Net premiums earned 2,984.1 2,874.8 -3.7
Slide 43: Operating companies: MAPFRE FAMILIAR by lines (contd.)
5 Financial supplement Operating companies: Key figures MAPFRE FAMILIAR – by lines (contd.) Health 9M 2011 9M 2012 % Burial 9M 2011 9M 2012 % Gross written and accepted premiums Gross written and accepted premiums 402.3 403.2 0.2% 248.8 251.5 1.1% Net premiums earned 299.8 293.3 -2.2% Net premiums
Slide 44: Operating companies: Key figures MAPFRE EMPRESAS
5 Financial supplement Operating companies: Key figures MAPFRE EMPRESAS 9M 2011 9M 2012 % Gross written and accepted premiums 521.6 546.7 4.8% Net premiums earned 395.6 418.1 5.7% Underwriting result 74.6 82.7 10.9% Net financial income 39.1 13.5 -65.5% Other business activities 0.6 0.0 --- Other n
Slide 45: Operating companies: Key figures MAPFRE VIDA
5 Financial supplement Operating companies: Key figures MAPFRE VIDA Breakdown of premiums 9M 2011 9M 2012 % 9M 2011 9M 2012 % Regular Premiums 467.5 337.8 -27.7% Technical Reserves excluding - Agents' and other channels 215.0 198.3 -7.8% shadow accounting 18,186.6 18,437.7 1.4% Shadow accounting a
Slide 46: Operating companies: Key figures MAPFRE VIDA
5 Financial supplement Operating companies: Key figures MAPFRE VIDA Funds under management 9M 2011 9M 2012 % Change in funds under management(1) 9M 2011 9M 2012 Regular premiums insurance 4,634.4 4,528.2 -2.3% (2) - Agents' channel and others 3,170.6 3,132.0 -1.2% IFRS technical reserves 49.4 298.3
Slide 47: Operating companies: Key figures MAPFRE AMÉRICA
5 Financial supplement Operating companies: Key figures MAPFRE AMÉRICA MAPFRE AMÉRICA – by lines 9M 2011 9M 2012 % Non-Life 9M 2011 9M 2012 % Gross written and accepted premiums 4,907.4 6,604.3 34.5% Gross written and accepted premiums 3,831.7 4,672.7 21.9% Net premiums earned 3,727.3 4,860.2 30.4
Slide 48: Operating companies: Key figures MAPFRE BRASIL
5 Financial supplement Operating companies: Key figures MAPFRE BRASIL MAPFRE BRASIL – by lines 9M 2011 9M 2012 Non-Life 9M 2011 9M 2012 Gross written and accepted premiums 1,742.9 2,123.2 Gross written and accepted premiums 2,470.6 3,577.1 Net premiums earned 1,411.0 1,702.3 Net premiums earned 2,09
Slide 49: Operating companies: Key figures MAPFRE INTERNACIONAL
5 Financial supplement Operating companies: Key figures MAPFRE INTERNACIONAL MAPFRE INTERNACIONAL – by lines 9M 2011 9M 2012 % Non-Life 9M 2011 9M 2012 % Gross written and accepted premiums 1,383.9 1,573.1 13.7% Gross written and accepted premiums 1,437.6 1,665.7 15.9% Net premiums earned 1,184.8
Slide 50: Operating companies: MAPFRE USA and MAPFRE GLOBAL RISKS
5 Financial supplement Operating companies: Key figures MAPFRE USA MAPFRE GLOBAL RISKS 9M 2011 9M 2012 % 9M 2011 9M 2012 % Gross written and accepted premiums 813.2 867.8 6.7% Gross written and accepted premiums 1,071.7 1,172.4 9.4% - Global Risks 743.4 791.0 6.4% Net premiums earned 961.6 1,055
Slide 51: Operating companies: Key figures MAPFRE RE
5 Financial supplement Operating companies: Key figures MAPFRE RE MAPFRE RE – by lines 9M 2011 9M 2012 % Non-Life 9M 2011 9M 2012 % Gross written and accepted premiums 2,037.0 2,277.0 11.8% Gross written and accepted premiums 1,744.2 1,908.3 9.4% Net premiums earned 1,382.0 1,464.0 5.9% Net premi
Slide 52: Operating companies: Key figures MAPFRE ASISTENCIA
5 Financial supplement Operating companies: Key figures MAPFRE ASISTENCIA 9M 2011 9M 2012 % Operating income 528.4 680.8 28.8% - Gross written and accepted premiums 416.6 553.7 32.9% - Other income 111.8 127.1 13.7% Net premiums earned 349.1 474.3 35.9% Underwriting result 26.5 24.4 -7.9% Net finan
Slide 53: Schedule and contacts
1 Key highlights 2 Consolidated financial information 3 Business development 4 Appendix 5 Financial supplement 6 Schedule and contacts 53 No. 2012 - 21
Slide 54: 2012 Provisional Schedule
6 Schedule and contacts 2012 Provisional Schedule Release 2012 Third Quarter Results 26-Oct-12 Madrid Conference Call – 2012 Third Quarter Results 30-Oct-12 London Presentation to analysts – 2012 Third Quarter Results 54 No. 2012 - 21
Slide 55: Investor Relations Department
6 Schedule and contacts Investor Relations Department Luigi Lubelli Deputy General Manager – Finance +34-91-581-6071 Jesús Amadori Carrillo Head of Investor Relations +34-91-581-2086 Alberto Fernández-Sanguino Investor Relations +34-91-581-2255 Natalia Núñez Arana Investor Relations +34-91-581-8664
Slide 56: 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 evolution, its results and its divide