Slide 1: Activity Update Analyst & Investor Presentation 6M 2024
Activity Update Analyst & Investor presentation 6M 2024 July 26th 2024 1
Slide 2: Disclaimer
DISCLAIMER MAPFRE S.A. (MAPFRE) hereby informs that the figures and ratios in this activity presentation, unless stated otherwise, are homogenized local accounting figures obtained from the financial statements prepared by MAPFRE Group companies, presented under the accounting principles in force in
Slide 3: Profitable growth strategy is delivering
ACTIVITY UPDATE – 6M 2024 Profitable growth strategy is delivering PREMIUMS PROFITABILITY NON-LIFE SOLVENCY II €15,145 mn €462 mn COMBINED RATIO net result +45.6% €13,640 mn +5.5% 10.6% ROE +1.6 p.p. 95.7% 197.7% Ex-Life savings +6.2% -1.3 p.p. Data at March 2024, without transitional measures LATAM
Slide 4: Premiums
ACTIVITY UPDATE – 6M 2024 PREMIUMS TOTAL PREMIUMS €15,145M +5.5% +5.5%* MAIN LINES OF BUSINESS Local accounting 4 Million euros / * At constant exchange rates
Slide 5: Key Figures and Ratios
ACTIVITY UPDATE – 6M 2024 KEY FIGURES AND RATIOS KEY FIGURES BY REGIONS AND BUSINESS UNITS ROE (main markets/units) 6M 2024 Premiums Net result Non-Life Combined ratio 6M 2024 Δ% 6M 2024 Δ% 6M 2024 Δ% BRAZIL 23.2% IBERIA 5,321.8 3.6% 167.9 36.8% 100.2% 1.3 p.p BRAZIL 2,436.0 -0.6% 120.7 0.6% 77.0% -
Slide 6: Key Figures > General P&C
ACTIVITY UPDATE – 6M 2024 KEY FIGURES > GENERAL P&C Premiums Attributable result Combined ratio 6M 2023 6M 2024 Δ% 6M 2023 6M 2024 6M 2023 6M 2024 MAPFRE GROUP 4,519 4,713 4.3% 134.7 188.8 85.9% 83.2% BRAZIL 1,377 1,348 -2.0% 75.8 70.2 68.9% 68.6% IBERIA 1,441 1,541 6.9% 52.7 73.8 95.7% 94.9% NORTH
Slide 7: Key Figures > Auto
ACTIVITY UPDATE – 6M 2024 KEY FIGURES > AUTO Premiums Insured units Attributable result Combined Ratio Units 6M 2023 6M 2024 Δ% Δ% 6M 2023 6M 2024 6M 2023 6M 2024 (mn) MAPFRE GROUP 3,074 3,243 5.5% 13.10 -6.3% -36.1 -19.0 106.2% 104.8% IBERIA 1,166 1,232 5.7% 6.02 -2.7% -9.2 -28.8 103.5% 106.1% NORT
Slide 8: Key Figures > Life Business
ACTIVITY UPDATE – 6M 2024 KEY FIGURES > LIFE BUSINESS Premium growth > Insurance units Life technical-financial result 6M 2023 6M 2024 Δ YoY Total MAPFRE Group* 369.5 388.9 5.2% Total Insurance Units 348.8 381.5 9.4% of which: IBERIA 100.8 147.9 46.8% BRAZIL 192.4 182.3 -5.2% OTHER 55.7 51.3 -7.9% O
Slide 9: Capital Position & Credit Metrics
ACTIVITY UPDATE – 6M 2024 CAPITAL POSITION & CREDIT METRICS Capital structure Solvency II Ratio (%) 12.31.2023 06.30.2024 %Δ YTD Total equity 9,214 9,214 0.0% Total debt 2,701 2,717 0.6% Senior debt 864 858 -0.8% Subordinated debt 1,628 1,619 -0.6% Bank financing 208 241 15.5% Leverage ratio 22.7% 2
Slide 10: Assets Under Management
ACTIVITY UPDATE – 6M 2024 ASSETS UNDER MANAGEMENT Market value 06.30.2024 %Δ Government fixed income 22.2 -2.1% Spain 9.5 -2.2% Italy 2.3 0.3% Rest of Europe 1.9 3.0% United States 1.8 4.1% Brazil 2.7 -19.8% Rest of LATAM 3.0 12.4% Other 1.0 -4.6% Corporate fixed income 8.9 8.6% Real Estate* 1.9 3.8
Slide 11: Investment Portfolio
ACTIVITY UPDATE – 6M 2024 INVESTMENT PORTFOLIO Eurozone – Fixed income portfolios – Active management Market value (€bn) Accounting Market yield Modified Yield (%) (%) duration (%) 12.31.2023 3.48 2.50 3.28 7.80 IBERIA NON-LIFE* 06.30.2024 3.57 2.59 3.62 6.80 MAPFRE RE 12.31.2023 4.16 2.54 3.80 3.40
Slide 12: Financial Income
ACTIVITY UPDATE – 6M 2024 FINANCIAL INCOME Net Financial Income – Non-Life Net realized gains and losses* 6M 2023 6M 2024 Δ% 6M 2023 6M 2024 IBERIA 69.1 82.3 19.1% IBERIA 6.9 33.4 BRAZIL 44.4 44.1 -0.7% Non-Life 6.2 15.7 OTHER LATAM 84.9 99.1 16.7% Life 0.7 33.2 NORTH AMERICA 47.0 46.9 -0.1% NORTH A
Slide 13: IFRS 17&9 Main KPIs
IFRS 17&9 MAIN KPIs IFRS 17&9 Homogenized local accounting 6M 2023 6M 2024 ∆% 6M 2023 6M 2024 ∆% Premiums - - - 14,350 15,145 5.5% Insurance revenue* 11,993 12,712 6.0% - - - Combined ratio 96.1% 93.6% -2.5 p.p 97.1% 95.7% -1.3 p.p Loss ratio 69.1% 66.2% -2.9 p.p 70.0% 68.2% -1.8 p.p Expense ratio 2
Slide 14: Closing Remarks
CLOSING REMARKS The second quarter confirms the Diversification by geography and Sustainable growth trend we are aiming for with the by business segment premiums and net income Strategic Plan LATAM led by Brazil Auto business on the path to Very strong performance of with a strong profit contributio
Slide 15: Investor Relations Contacts
INVESTOR RELATIONS CONTACTS Email: IR@mapfre.com Telephone: (+34) 91 581 23 18 Corporate website: www.mapfre.com Financial documentation center: www.mapfre.com/en/financial-information/ Leandra Clark Leslie Hoffman Natalia Chavarría Lidia Bermúdez Head of Investor Investor Relations Investor Relatio
Slide 16: Annex
MAPFRE Annex
Slide 17: P&L – June 2024
IFRS 17&9 P&L – June 2024 6M 2023 6M 2024 I. INSURANCE REVENUE* 11,993 12,712 II. INSURANCE SERVICE EXPENSES (10,522) (10,885) 1. Incurred claims and other insurance service expenses (7,840) (8,128) 2. Acquisition costs (2,596) (2,785) 3. Losses on onerous contract groups and reversals of those lo (
Slide 18: Reconciliation P&L – June 2024
IFRS 17&9 RECONCILIATION P&L – June 2024 IFRS 17 impacts: IFRS 9 impacts: TOTAL 55 (23) IMPACT 32 * Homogenized local accounting ** Includes the discounting and unwind of insurance and reinsurance contract assets & liabilities, as well as the effect of interest rate movements on insurance and reinsu
Slide 19: Key Figures by Region and Business Unit
IFRS 17&9 KEY FIGURES BY REGION AND BUSINESS UNIT Insurance revenue* Attributable result AREA / BUSINESS UNIT 6M 2023 6M 2024 Δ% 6M 2023 6M 2024 Δ% IBERIA 3,375.6 3,648.4 8.1% 112.7 185.9 64.9% BRAZIL 2,339.8 2,420.9 3.5% 113.3 118.2 4.3% OTHER LATAM 2,238.6 2,454.0 9.6% 61.1 92.6 51.5% NORTH AMERIC
Slide 20: Combined Ratios by Region IFRS 17&9 vs. Local Accounting
IFRS 17&9 COMBINED RATIOS BY REGION IFRS 17&9 vs. LOCAL ACCOUNTING - June 2024 Homogenized IFRS 17&9 Δ p.p. Local accounting IBERIA 100.2% 98.4% -1.9 p.p. BRAZIL 77.0% 76.7% -0.3 p.p. NORTH AMERICA 99.3% 97.4% -1.9 p.p. EMEA 113.3% 115.1% 1.8 p.p. OTHER LATAM 98.9% 97.4% -1.5 p.p. REINSURANCE 95.7%
Slide 21: Balance Sheet 06.30.2024 vs. 12.31.2023
IFRS 17&9 BALANCE SHEET 06.30.2024 vs. 12.31.2023 ASSETS 12.31.2023 06.30.2024 %∆ EQUITY AND LIABILITIES 12.31.2023 06.30.2024 %∆ A) INTANGIBLE ASSETS 2,680 2,603 -2.9% A) EQUITY 9,656 9,680 0.2% B) PROPERTY, PLANT AND EQUIPMENT 1,184 1,195 0.9% I. Equity attributable to the controlling company's sh
Slide 22: Change in Shareholders' Equity – June 2024
IFRS 17&9 CHANGE IN SHAREHOLDERS’ EQUITY – June 2024 Balance at 31 December 2023 8,467 Currency conversion differences (75) Change in market value of financial assets (310) Change in technical provision 211 valuation Other (7) Total income and expenses recorded in OCI: (181) Result 494 Dividends (27
Slide 23: CSM Roll Forward
IFRS 17&9 CSM ROLL FORWARD Δ CSM: (87) Δ CSM before release: +94 Of which: Of which: IBERIA: -61 IBERIA: 1,687 BRAZIL: -109 BRAZIL: 469 OTHER LATAM: 253 EMEA: 100 23 Million euros
Slide 24: Breakdown of CSM
IFRS 17&9 BREAKDOWN OF CSM 06.30.2024 CSM net of non- CSM CSM CSM net of REGION controlling interest 12.31.2023 06.30.2024 taxes and taxes IBERIA 1,686 1,687 1,267 1,251 BRAZIL 570 469 310 89 OTHER LATAM 250 253 176 174 EMEA 90 100 65 18 NORTH AMERICA 3 3 3 3 TOTAL 2,600 2,513 1,820 1,534 24 Million
Slide 25: 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 26: 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 27: Terminology (I/II)
TERMINOLOGY (I/II) Local homogenized accounting Revenue/ Total Premiums + Financial income from investments + Income from non‐insurance companies and other income Consolidated Revenue Premiums/Written and Accepted Written premiums, direct insurance + premiums from accepted reinsurance premiums Direc
Slide 28: Terminology (II/II)
TERMINOLOGY (II/II) IFRS 17&9 Insurance revenue + Reinsurance revenue + Insurance/Reinsurance finance revenue + Finance revenue not related to Insurance service + Reversal of Income / Total Income / financial asset impairment + Share in profits from equity‐accounted companies + Other non‐technical r