Slide 1: MAPFRE in 2014: Presentation of Annual Results
MAPFRE in 2014 Presentation of Annual Results February 11, 2015 Antonio Huertas MAPFRE Chairman & CEO
Slide 2: 2014 Results: 845 million euros in profits
2014 Results MAPFRE's results are excellent: 845 million euros in profits MAPFRE Profit 2013 2014 ∆% 845 Consolidated revenue 25,889 26,366 +1.8 791 Premiums 21,836 22,401 +2.6 Attributable profit 791 845 +6.9 Combined ratio* 96.1 95.7 -0.4 p.p. 2013 2014 In constant currency, premiums would have ri
Slide 3: Quality growth: managed savings have increased
2014 Results Quality growth: managed savings have increased Managed Savings Total Assets 67,232 56,826 +18.3% +21.4% 40,817 33,646 2013 2014 2013 2014 Million euros
Slide 4: Key Highlights: Highlights of 2014
Key Highlights Highlights of 2014 Growth in the majority of countries and business lines. Return in Spain to an upward trend. Significant contribution from Life insurance. Reduction of 40 basis points in the combined ratio due to a significant improvement in the cost ratio. Significant growth in fin
Slide 5: A Global Company
A Global Company Maps with Brands Spain Premiums +1.1% Profit +23.6% Reinforced leadership 31% Turkey Premium USA Premiums (local currency) +10.2% distribution Premiums +4.6% Presence in 19 states Puerto Rico: Premiums +4.2% Brazil Mexico Premiums (local Premiums (local currency) +15.6% 69% Profit +
Slide 6: Business Units
Business Performance Business Units Insurance Premiums: €18,893 million Trends in premium performance Business Net profit: €797 million 22,401 21,580 21,836 19,600 Premiums: €3,343 million 16,973 15,607 Reinsurance 14,305 Net profit: €141.5 million 12,311 10,933 Global Premiums: €1,049 million Risks
Slide 7: Business in more than 100 countries
A Global Company Key facts and figures Presence in 49 37,053 5,524 79,289 countries employees offices intermediaries Business in more than 100 countries
Slide 8: Focusing on the client: solid positions in all business lines
A Global Company FOCUSING ON THE CLIENT: Solid positions in all business lines Automobiles Companies +13.2 million insured Nearly 2 million companies insured Home Global Risks +5 million insured +3,000 companies insured Health Reinsurance Nearly 2 million insured +1,600 ceding companies in 105 count
Slide 9: MAPFRE in 2014: Detailed analysis of results
MAPFRE in 2014 Detailed analysis of results February 11, 2015 Esteban Tejera Vice Chairman DETAILED ANALYSIS OF RESULTS
Slide 10: A few basic figures: Results
MAPFRE in 2014 A few basic figures: Results 2013 2014 % CONSOLIDATED REVENUE 25,889 26,367 +1.8 PREMIUMS 21,836 22,401 +2.6 ATTRIBUTABLE PROFIT 791 845 +6.9 NON-LIFE COMBINED RATIO 96.1 95.7 -0.4 p.p. Million euros 10
Slide 11: A few basic figures: Balance Sheet and Managed Savings
MAPFRE in 2014 A few basic figures: Balance Sheet and Managed Savings 2013 2014 % (1) NET EQUITY 9,894 11,469 +16 TOTAL ASSETS 56,826 67,232 +18.3 (2) MANAGED SAVINGS 33,614 40,818 +21.4 SOLVENCY MARGIN 246.5 % 259.0 % +12.5 p.p. Net equity in Spain has increased by 1,576 million euros (+16 percent)
Slide 12: A cautious investment policy adjusted to the insurance business
MAPFRE in 2014 A cautious investment policy adjusted to the insurance business Investment portfolio – Breakdown asset type Mutual Funds Other investments 3,648 1,057 (2.2%) (7.5%) Cash 1,189 (2.4%) Equities 1,377 (2.8%) -of which: Property Spain 60.2% 2,392 (4.9%) Fixed Income – Other European count
Slide 13: Financing structure
MAPFRE in 2014 Financing structure Capital structure Bank financing (1.4%) Ordinary debt Equity (7.6%) (86.5%) Better market conditions have led to: Hybrid debt (4.5%) • Early cancellation of the 750-million-euro revolving €13,258 credit facility. million • New syndicated loan of 1 billion euros (ma
Slide 14: Increased contribution of IBERIA and reinsurance to consolidated results
MAPFRE in 2014 Increased contribution of IBERIA and reinsurance to consolidated results Premiums(1) Contribution to consolidated results IBERIA 31% Other regions 69% IBERIA 43% Other regions 57% EUR million % MAPFRE RE IBERIA 432 43.1% APAC 3,343 (14.0%) BRAZIL 144 14.3% 101 (0.4%) IBERIA 7,456 (31.
Slide 15: Profit and Loss Account
Business Performance PROFIT AND LOSS ACCOUNT NON-LIFE PREMIUMS: 16,409million euros. (+0.8%) LIFE PREMIUMS: 5,992 million euros. (+7.8%) 15 Million euros. Figures relate to written and accepted premiums.
Slide 16: Market shares – Non-Life – International business – 2013
WE ARE ADVANCING WITH OUR INTERNATIONAL DIVERSIFICATION Business development Market shares – Non-Life – International business – 2013 COUNTRY Ranking Market shares Brazil 1 15.5% Puerto Rico 1 14.5% Peru 3 15.4% Chile 4 10.8% Colombia 6 6.9% (1) Turkey 5 5.9% Mexico 5 5.2% (2) United States 19 0.8%
Slide 17: IBERIA
Business Performance IBERIA TOTAL PREMIUMS: 7,456 million euros, 31.2 percent of the group’s total PREMIUMS 2014 % SPAIN 7.256 1.1 PORTUGAL 200 +19.3 The increase in premiums in Spain reflects: • The growth in Health insurance and the incipient recovery of motor insurance. • In Life insurance, the i
Slide 18: IBERIA
Business Performance IBERIA PREMIUMS 2013 2014 % FAMILIAR 3,693 3,751 +1.6 Motor 2,056 2,033 -1.1 Spain Insurance: Non-Life Entities Home 637 643 +0.9 Health 400 427 +6.7 Burial 280 296 +5.9 Other 184 186 +1.5 EMPRESAS 643 641 -0.3 Million euros TOTAL NON-LIFE 4,336 4,391 +1.2 18
Slide 19: IBERIA
Business Performance IBERIA 2013 2014 % PREMIUMS Life 2,508 2,618 +4.4 MANAGED SAVINGS Spain Insurance: Life technical provisions 19,504 24,432 +25.3 Life and Savings Entities Pension funds 5,372 5,789 +7.8 Mutual funds & 3,027 3,534 +16.7 managed portfolios Million euros TOTAL 27,903 33,754 +21.0 N
Slide 20: IBERIA: market share in Spain
Business Performance IBERIA 2014 Premiums: Motor 20.6% Market share in Spain Multi-peril 18.7% TOTAL NON-LIFE 15.2% LIFE 10.6% MAPFRE surpasses market performance by two points 20
Slide 21: IBERIA: managed savings market share
Business Performance IBERIA 2014 Managed savings: Life provisions 12.3 % Market share in Spain Mutual funds 1.8 % Pension funds 5.8 % 21
Slide 22: LATAM
Business Performance LATAM PREMIUMS 2014 % BRAZIL 5,553 +15.6* LATAM SOUTH 2,863 -4.1 LATAM NORTH 1,211 +11.0 22 Figures relate to written and accepted premiums in millions of euros. * Percentage calculated in local currency.
Slide 23: INTERNATIONAL
Business Performance INTERNATIONAL PREMIUMS 2014 % NORTH AMERICA 2,105 +4.5 EMEA 1,285 +4.4 APAC 101 +16.7 The premium volume in local currency has risen by 4.5 percent in the USA, 10.2 percent in Turkey, and 36.6 percent in Malta Remarkable growth in APAC, driven by China, the Philippines and Austr
Slide 24: Assessment and Strategy
MAPFRE in 2014 ASSESSMENT AND STRATEGY Presentation of Annual Results February 11, 2015 Antonio Huertas MAPFRE Chairman & CEO
Slide 25: Pillars of our growth strategy
Pillars of our growth strategy Future The The economic plans in strategic The new strategy attainment of our context markets map goals
Slide 26: The global economy has left the crisis behind but uncertainties persist
New Economic Scenario The global economy has left the crisis behind but uncertainties persist Europe recovering but growth is USA once again the engine of Less growth in emerging still weak. ECB QE. Greece. global growth. China slowing economies. Falling oil prices. down. Depreciation of the euro. E
Slide 27: Spain is regaining its momentum and leading economic growth in Europe
New Economic Scenario Spain is regaining its momentum and leading economic growth in Europe Economic activity gathering Economic and financial Unemployment falling, though momentum, consumption and conditions relaxing for still very slowly. investment improving. companies and individuals. GDP Risk p
Slide 28: Global insurance company: five continents | 47 countries
2014 Results Global insurance company: five continents | 47 countries 15th largest reinsurance company in NET Top 10 in premiums and the 13th Europe largest in GROSS Leader in the Spanish market Top 20 in U.S. Automobile insurance sector Top Non-Life insurer in LATAM Leading multinational insurance
Slide 29: Global Strategy: MAPFRE IBERIA
Global Strategy MAPFRE IBERIA: Consolidation of leadership 1 Automobiles: Increase of market share to 20.6 percent Life: MAPFRE has become the exclusive 2 bancassurance provider for BANKIA Investment: Mutual funds +16.7 percent (3,533 3 million euros; Pension funds +7.8 percent (5,789 million euros)
Slide 30: Global Strategy: MAPFRE BRAZIL
Global Strategy MAPFRE BRAZIL: 23 percent of total premiums Represents 54 percent of Slowdown of economic New business line: MAPFRE's insurance business growth more cushioned in Corporate Health in Latin America insurance industry
Slide 31: Global Strategy: LATAM SOUTH/NORTH
Global Strategy LATAM SOUTH/NORTH 1 Strategic commitment to growth in Mexico 2 Vast growth potential for the online business in Latin America 3 Leadership consolidation in LATAM South
Slide 32: Global Strategy: North America
Global Strategy NORTH AMERICA: More than 2 billion euros in premiums (9 percent of total) 1 Presence in 21 states: entry in Vermont and Maine 2 Launch of new Life business 3 Development of digital business 4 Distribution agreements on West Coast
Slide 33: Global Strategy: EMEA
Global Strategy EMEA Acquisition of direct line in Italy and Germany Commitment to Turkey Main figures +700 million euros in annual premiums, 30 million euros in annual profit 1 Non-Life market share doubled to 7 percent in six years 1.5 million clients, 1,400 employees Market share of 28 percent an
Slide 34: Global Strategy: APAC
Global Strategy APAC Development of a direct insurance business in China Progressive development of a multichannel offering in China
Slide 35: New Strategy Map
New Strategy Map We are forging ahead with our changes to become: A more client-oriented company That continues to grow profitably Through operational excellence And solid risk management Relying on committed human capital that has the necessary skills Our challenge To be the most trusted global ins
Slide 36: Key Highlights: simpler and more efficient corporate governance model
Key Highlights With a simpler and more efficient corporate governance model BUSINESS UNITS – INSURANCE / ASSISTANCE / GLOBAL RISKS BUSINESS UNIT NORTH AMERICA • Decentralized management within a common framework of action that guarantees the local implementation of policies established for the whole
Slide 37: The New Strategy: Strategic goals 2014-2016
The New Strategy Strategic goals 2014-2016 GROWTH EFFICIENCY PROFITABILITY Revenue forecast of Maintenance of the group's Maintain a dividend yield 30 billion euros combined ratio below 96 consistent with present percent levels
Slide 38: The New Strategy: Strategic goals 2014-2016 (II)
The New Strategy Strategic goals 2014-2016 (II) Cost reduction plan Consolidation of leading Continued development in position in the regions the North American, where European and Asian we are already a key player markets
Slide 39: Commitment to creation of long-term shareholder value
Resultados 2014 Commitment to creation of long- Ratings: “A” as insurer and term shareholder value “BBB+” as issuer Proposal to raise dividend by 7.7% Highest ratings among Spanish business groups Total dividend proposed against 2014 results increases to 14 euro cents per share In 2014, 431.2 millio
Slide 40: Our most trusted global insurance company
Our most trusted global insurance company