Slide 1: 30NC10 Lower Tier II Debt Issuance
30NC10 LOWER TIER II DEBT ISSUANCE Presentation to fixed income investors July 2007 Nº 2007 - 24
Slide 2: 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
Slide 3: Executive summary
Executive summary MAPFRE is one of the main European insurance groups, with leading market positions and strong financial position: – Largest insurance group in Spain by market shares and distribution capability – Significant and growing international presence in direct insurance (Latin America, Ita
Slide 4: Overview and strategy
Overview and strategy Business profile Recent acquisitions and agreements Financials, Risk and Capital management Terms of the offering Appendix 4 Nº 2007 - 24
Slide 5: MAPFRE at a glance
MAPFRE at a glance MAPFRE is an independent Spanish group which carries out activities in the fields of insurance, reinsurance, financial services, property development and services primarily in Spain, Europe and Latin America It has direct presence in 40 countries across various business lines, whi
Slide 6: Key figures
Key figures 2006(1) 2005(1) % 06/05 3M 2007 3M 2006(1) % 07/06 Non-Life gross written and accepted premiums 8,452.2 7,801.1 8.3% 2,751.9 2,673.4 2.9% Life gross written and accepted premiums 2,480.5 2,309.0 7.4% 637.0 648.9 -1.8% Total gross written and accepted premiums 10,932.7 10,110.1 8.1% 3,388
Slide 7: Organisational chart
Organisational chart MAPFRE S.A. 51% 88% MAPFRE - CAJA MADRID HOLDING MAPFRE RE MAPFRE VIDA MAPFRE MAPFRE MAPFRE MAPFRE 100% 100% 89% 88% MAPFRE INVERSIÓN 100% 100% MAPFRE SEGUROS AUTO- INMUEBLES AMÉRICA MAPFRE VIDA AMÉRICA PENSIONES GENERALES MÓVILES VIDA 100% MAPFRE ASISTENCIA 100% MAPFRE MAPFRE M
Slide 8: Strategy
Strategy Increase competitiveness, growth potential and results Consolidate the position as Spain’s leading insurer Lay the grounds for a presence in direct insurance in Western European markets Strengthen the presence in Latin America as one of the largest international insurers in that continent O
Slide 9: 2007–2009 objectives
2007–2009 objectives MAPFRE has set the following objectives for fiscal years 2007 – 2009: Direct Non-life attain in direct Non-life insurance higher growth rates than those obtained by insurance the market of each country Life assurance achieve increases in the volume of funds under management abov
Slide 10: Business profile
Overview and strategy Business profile Recent acquisitions and agreements Financials, Risk and Capital management Terms of the offering Appendix 10 Nº 2007 - 24
Slide 11: Spanish business
Spanish business MAPFRE became Spain’s largest insurance group in 1983 and has retained that position ever since It ranks among the top 5 players in most business lines, being of noteworthy mention(1): – No. 1 in Motor insurance, with 5.7 million vehicles insured and a market share of 20.4% – No. 1
Slide 12: Top insurance groups in Spain in 2006
Top 10 insurance groups in Spain in 2006 - overall(1) 13.5% 7,091 6.7% 3,507 5.0% 5.0% 4.9% 2,632 2,607 2,557 3.7% 3.6% 3.6% 3.3% 3.0% 1,935 1,908 1,889 1,717 1,590 MAPFRE AXA - ALLIANZ GENERALI SANTANDER ZURICH AVIVA CASER CAIFOR IBERCAJA WINTERTHUR SEGUROS (1) Source: ICEA. Business profile 12 Nº
Slide 13: Foreign business activities
Foreign business activities The foreign operations constitutes the fastest growing part of MAPFRE’s business, contributing 34.6% of its consolidated premiums and 22% of its Result before tax in 2006. The main Units and Companies that make them up are: – Holding companies MAPFRE AMÉRICA and MAPFRE AM
Slide 14: A comparison of MAPFRE's key foreign markets
A comparison of MAPFRE’s key foreign markets Italy Premiums per capita: 2,600 USD 2,421 GDP per capita: USD 29,791 2,400 Spain Average GDP Premiums per capita: 1,500 per capita Puerto Rico USD 1,456 USD 5,239 GDP per capita: USD 27,150 160 Brazil 140 Venezuela 120 Mexico Average Premiums Argentina p
Slide 15: International operations
International operations Contribution of international operations (1) PREMIUMS RESULTS (2) 22.0% AGGREGATE 37.3% CONTRIBUTION 19.9% 34.1% 2.7% 17.4% 30.4% 3.0% 3.8% 31.1% 34.6% 26.6% 2004 2005 2006 2004 2005 2006 Consolidated weight Consolidation adjustments 6.1% Non-life market share in Latin Ameri
Slide 16: Breakdown of Latin American premiums and results by country
Breakdown of Latin American premiums and results by country PREMIUMS 2006 ARGENTINA 275.7 11% BRAZIL MEXICO VENEZUELA OTHER 959.6 310.9 296.6 348.0 34% 13% 12% 14% PUERTO RICO 270.9 11% €2,461.7 million RESULTS 2006 (1) MEXICO 7.0 6% BRAZIL VENEZUELA PUERTO RICO OTHER 41.8 36.0 26.5 -2.8 -2% 34% 30%
Slide 17: Recent acquisitions and agreements
Overview and strategy Business profile Recent acquisitions and agreements Financials, Risk and Capital management Terms of the offering Appendix 17 Nº 2007 - 24
Slide 18: Recent acquisitions
Recent acquisitions MAPFRE is executing its strategy: Consolidate its leading position in the Spanish Insurance Market LIFE NON-LIFE New Significant impulse Bancassurance CAJA CASTILLA LA MANCHA to banking Increase in agreements distribution market shares and Increased widen the penetration in Motor
Slide 19: Post-acquisitions ranking and market shares (2006)
Post-acquisitions ranking and market shares (2006) Before Acquisition After Acquisition Market share Ranking Market share Ranking Coming from SPAIN Total Market 13.5% 1 14.2% 1 CCM (0.4%); MVA (0.2%); BANKINTER (0.1%) Non-Life insurance 17.4% 1 17.8% 1 MVA (0.4%) Life assurance 8.3% 3 9.5% 2 CCM (1.
Slide 20: Management
Overview and strategy Business profile Recent acquisitions and agreements Financials, Risk and Capital management Terms of the offering Appendix 20 Nº 2007 - 24
Slide 21: Premiums
Premiums(1) CAGR: 10.8% 10,933 CAGR: 9.4% 10,110 8,912 7,632 7,742 7,589 5,797 2000 2001 2002 2003 2004 2005 2006 SPANISH GAAP IFRS Million euros (1) Figures up to 2004 correspond to SISTEMA MAPFRE (consolidated figures for MAPFRE MUTUALIDAD). Figures for 2005 and 2006 are consolidated pro forma for
Slide 22: Breakdown of premiums by business line
Breakdown of premiums by business line(1) 2005 2006 Before acquisitions After acquisitions Life (Abroad) Reinsurance Reinsurance Life (Abroad) Reinsurance Life (Abroad) 3.2% 4.1% 12.5% Life (Spain) 12.4% 4.3% 10.9% 17.9% Life (Spain) Life (Spain) 16.3% 16.3% Non-Life Non-Life (Abroad) (Abroad) Non-L
Slide 23: Combined ratio
Combined ratio(1) Ratio excluding catastrophe claims Catastrophe claims 100.0% Katrina Wilma Rita 98.3% WTC Emily 0.6% Windsor Erwin Central Europe 95.6% Songda Charlie 3.3% Ivan 100.0% 92.0% 97.7% 0.6% 96.2% 93.9% 92.6% 92.3% 91.4% 2000 2001 2002 2003 2004 2005 2006 SPANISH GAAP IFRS (1) Figures up
Slide 24: Positive reserves development
Positive reserves development (%)(1) 2000 2001 2002 2003 2004 2005 2006 At the end of year 100.0 100.0 100.0 100.0 100.0 100.0 100.0 of occurrence At 31.12.2006 94.0 98.4 98.6 96.9 97.3 96.3 Run-off 6.0 1.6 1.4 3.1 2.7 3.7 --- Recurring positive run-offs (1) Development of the cost of direct and acc
Slide 25: Combined ratio by business line
Combined ratio by business line(1) Spain Non-Life Non-Motor Spain Motor(2) 100.3% 94.2% 93.9% 94.7% 94.2% 92.7% 92.3% 91.5% 91.2% 90.1% 90.3% 90.3% 88.9% 2001 2002 2003 2004 2005 2006 2000 2001 2002 2003 2004 2005 2006 Latin America Non-Life Reinsurance 112.5% 111.5% 107.1% 106.1% 103.0% 103.0% 105.
Slide 26: Result before tax
Result before tax(1) Result before tax Change in the equalisation reserve CAGR: 16.8% 1,156 847 872 CAGR: 35.4% 691 85 501 606 61 343 440 27 259 15 316 244 2000 2001 2002 2003 2004 2005 2006 SPANISH GAAP IFRS Million euros (1) Figures up to 2004 correspond to SISTEMA MAPFRE (consolidated figures for
Slide 27: Breakdown of the net attributable profit
Breakdown of the net attributable profit(1) 2005 2006 Other Other businesses Life (Abroad) businesses Life (Abroad) 1.7% 2.7% 1.7% 3.4% Reinsurance Reinsurance Life (Spain) Life (Spain) 9.7% 11.2% 12.6% 10.8% Non-Life Non-Life (Abroad) (Abroad) 14.8% 12.0% Non-Life (Spain) Non-Life (Spain) 58.5% 60.
Slide 28: Third-party funds under management
Third-party funds under management(1) 20,536 19,585 1,493 17,564 1,287 1,103 3,097 3,777 2,680 300 256 361 14,901 15,010 13,420 2004 2005 2006 Life assurance Technical reserves Unit-linked reserves Mutual funds Pension funds Million euros (1) Figures up to 2004 correspond to SISTEMA MAPFRE (consolid
Slide 29: Investment Portfolio
Investment Portfolio(1) Portfolio breakdown Breakdown of the bond portfolio by rating BBB BB or lower 0.6% 1.7% Real estate Other investments A Unrated 5.4% 3.0% 10.7% 0.7% Shares and mutual funds (incl. unit- linked) 7.9% AAA 39.8% 2005 AA Fixed income and 46.5% cash 83.7% €25,408.8 million €19,834
Slide 30: Fixed income investments matching Life Assurance reserves
Fixed income investments matching Life Assurance reserves(1) 2005 2006 Free investments Free investments 41.1% 39.5% Investments Investments matching Life matching Life reserves reserves 58.9% 60.5% €19,834.5 million €20,169.3 million (1) Aggregated pro forma figures for MAPFRE under its new corpora
Slide 31: Capital management principles
Capital management principles MAPFRE adopted in 2006 a capital management policy that quantifies requirements by measuring financial, credit, insurance and reinsurance risks, in anticipation of the Solvency II capital requirements Available economic capital is arrived at by adjusting the sum of IFRS
Slide 32: Exposure to Catastrophe risk and mitigating measures
Exposure to Catastrophe risk and mitigating measures Based on internal models at a 99.6% confidence level, MAPFRE would presently be exposed to an expected maximum net retained catastrophe claim in the region of 4% of the Group’s consolidated shareholders’ equity as at the close of 2006 MAPFRE’s gen
Slide 33: Catastrophe exposure
Catastrophe exposure Maximum net retained pre-tax exposure to selected types of 1 in 100 years catastrophe losses (figures for 2007, non cumulative) 87 77 75 46 Latin American South-Eastern USA European windstorm California Earthquake earthquake (Mexico) Hurricane Million euros Financials, Risk and
Slide 34: EBITDA Interest Coverage and Leverage
EBITDA Interest Coverage and Leverage(1) EBITDA Interest Coverage Debt Leverage 12.4% 71.8 11.0% 11.0% 10.7% 10.3% 58.1 8.9% 50.8 7.3% 39.8 6.2% 6.1% 33.8 30.9 31.3 26.4 23.1 20.9 3.0% 2000 2001 2002 2003 2004 2005 2006 2000 2001 2002 2003 2004 2005 2006 EBITDA Interest Coverage including operating
Slide 35: Recent agreements
Recent agreements Disbursement and Financing Disbursements in 2007 (€ million) Disbursements from 2008 onwards Additional payments during the coming years, linked to the value CAJA CASTILLA LA MANCHA 61.6 created, up to an estimated maximum amount of €93.1 million 2 deferred payments of €20 million
Slide 36: Terms of the offering
Overview and strategy Business profile Recent acquisitions and agreements Financials, Risk and Capital management Terms of the offering Appendix 36 Nº 2007 - 24
Slide 37: Transaction Summary
Transaction Summary Issuer Mapfre S.A. Securities Dated Subordinated Notes (the “Notes”) Expected Ratings ‘A-’ by Standard & Poor’s Issue Date [ ], 2007 Maturity / First Call Date [ ], 2037 / [ ], 2017 Special Event Redemption Upon certain tax, regulatory event or rating events From the Issue Date t
Slide 38: Appendix
Overview and strategy Business profile Recent acquisitions and agreements Financials, Risk and Capital management Terms of the offering Appendix 38 Nº 2007 - 24
Slide 39: Spanish distribution network – 2006
Spanish distribution network – 2006 75 19 52 24 139 27 CANTABRIA BASQUE COUNTRY ASTURIAS NAVARRE CATALONIA GALICIA 52 7 210 42 370 221 LA RIOJA CASTILE AND LEON 20 7 203 70 ARAGON 85 23 BALEARIC ISLANDS MADRID 49 25 206 1.026 VALENCIA CASTILE LA MANCHA 348 111 EXTREMADURA 229 138 112 22 MURCIA 82 20
Slide 40: Top groups in Spain by business line
Top 10 groups in Spain by business line(1) Top 10 Non-life by premiums Top 10 Life by reserves 12.5% 17.4% 16,366 5,226 10.1% 13,252 7.5% 8.7% 9,845 6.1% 5.8% 6.6% 8,030 4.9% 4.7% 2,627 7,537 4.8% 3.7% 1,997 4.4% 4.3% 6,377 6,198 3.1% 3.8% 3.5% 2.6% 3.3% 2.7% 4,877 1,433 1,314 1,291 4,076 1,137 1,05
Slide 41: A profile of Fundación MAPFRE
A profile of FUNDACIÓN MAPFRE FUNDACIÓN MAPFRE since 1975 promotes and funds the following non-profit activities that are in the general public interest: – The promotion of personal safety and the security of people’s property, in particular road safety and medical and health security – The improvem
Slide 42: Consolidated income statement
Consolidated income statement(1) 2006 2005 % Var. 3M 2007 3M 2006 % Var. NON-LIFE INSURANCE AND REINSURANCE Gross written and accepted premiums 8,452.2 7,801.1 8.3% 2,751.9 2,673.4 2.9% Premiums earned, net of ceded and retroceded reinsurance 6,989.4 6,409.1 9.1% 1,832.4 1,710.6 7.1% Net claims incu
Slide 43: Balance sheet
Balance sheet(1) 2006 2005 % 06/05 3M 2007 3M 2006 % 07/06 ASSETS Goodwill 603.9 591.2 2.1% 611.1 592.3 3.2% Fixed assets 1,144.9 1,051.9 8.8% 1,049.4 878.9 19.4% Investments 24,134.7 22,944.7 5.2% 24,118.7 23,406.0 3.0% Participation of reins. in technical reserves 1,804.4 1,647.8 --- 1,837.6 1,561
Slide 44: 2006 Solvency Margin
2006 Solvency Margin(1) Available capital 4,915.9 Required minimum 2,033.6 Solvency margin 2.42 x Million euros (1) Pro forma figures calculated in accordance with Spanish GAAP for MAPFRE under its new corporate structure in accordance with present regulations (Solvency I) Appendix 44 Nº 2007 - 24
Slide 45: Recent acquisitions: Life bancassurance in Spain
Recent acquisitions: Life bancassurance in Spain CAJA CASTILLA LA MANCHA BANKINTER Agreement with regional savings bank CAJA Agreement with nationwide bank BANKINTER CASTILLA – LA MANCHA (CCM) to jointly to jointly develop the Bank’s Life Assurance exploit and develop the Life Assurance and and Pens
Slide 46: Recent acquisitions: Non-life insurance in Spain
Recent acquisitions: Non-life insurance in Spain BBVA MUTUA VALENCIANA AUTOMOVILISTA Agreement for the management and sale of MAPFRE and MUTUA VALENCIANA Motor insurance products, under which the AUTOMOVILISTA (MVA) have signed a Bank’s Non-life insurance subsidiary, BBVA memorandum of understanding
Slide 47: Recent acquisitions: Non-life insurance abroad
Recent acquisitions: Non-life insurance abroad MAPFRE CATTOLICA AUTO GENEL SIGORTA Agreement to develop jointly the Motor MAPFRE has agreed to acquire an 80% insurance business, distributed through the shareholding in GENEL SIGORTA, the 10th agents channel in Italy largest Non-life company in Turkey
Slide 48: Outstanding debt and credit lines
Outstanding debt and credit lines Senior non-callable unsecured bond issue, €275 million, 6.02%, maturity 12/07/2011 Senior bank credit line, renewable annually, €200 million, 3 months Euribor + 9 b.p. Senior syndicated revolving credit facility, €500 million, 3 months Euribor + 14 b.p., maturity 18
Slide 49: EBITDA coverage
EBITDA coverage Spanish GAAP IFRS SISTEMA MAPFRE(1) MAPFRE S.A. pro forma (2) 2000 2001 2002 2003 2004 2005 2006 Earnings before tax (EBT) 243.8 316.1 440.0 606.0 847.3 872.0 1,156.1 Variation in equalisation reserves 15.2 26.8 61.1 85.3 -- -- -- Adjusted EBT 259.0 342.9 501.1 691.3 847.3 872.0 1,15
Slide 50: Equity, debt and leverage
Equity, debt and leverage Spanish GAAP IFRS SISTEMA MAPFRE(1) MAPFRE S.A. pro forma (2) 2000 2001 2002 2003 2004 2005 2006 Shareholders' equity 975.8 1,090.5 1,171.3 1,393.5 2,061.8 3,534.6 4,026.4 Minority interests 1,068.2 1,126.0 1,033.4 1,102.5 1,634.5 931.9 1,027.8 Total equity 2,044.0 2,216.5
Slide 51: Key figures of recent acquisitions
Key figures of recent acquisitions 2006(1) MUTUA MAPFRE CAJA CASTILLA VALENCIANA CATTOLICA LA MANCHA BANKINTER AUTOMOVILISTA AUTO GENEL SIGORTA GENEL YASAM Premiums 228.7 36.2 129.5 1,056.0 148.1 45.5 Technical reserves 869.0 489.5 --- --- --- 80.4 Pension funds 320.8 1,068.0 --- --- --- --- Total f
Slide 52: Group ratings
Group ratings Standard & Poor's A.M. Best 2007 2006 2007 2006 Issuer credit ratings MAPFRE S.A. A+/stable AA-/stable aa-/stable(1) aa-/stable Issue credit ratings MAPFRE S.A. - 12/07/2011 €275 million 6.02% senior unsecured bonds A+/stable AA-/stable aa-/stable(1) aa-/stable - 2037 30NC10 LT II seni
Slide 53: Latin America: Non-Life insurance market shares by country
Latin America: Non-Life insurance market shares by country 13.3 12.7 13.0 12.5 12.3 12.3 11.6 11.1 9.5 9.6 8.0 7.6 6.4 5.9 5.4 5.1 4.8 4.6 4.2 3.9 3.7 3.6 MAPFRE LA CENTRO MAPFRE MAPFRE CHILE MAPFRE LA MAPFRE MAPFRE PERU MAPFRE MAPFRE VERA MAPFRE MAPFRE PARAGUAY AMERICANA PRAICO SEGUROS SEGURIDAD AR
Slide 54: Expense and loss ratios by units and companies
Expense and loss ratios by units and companies RATIOS (1) EXPENSE RATIO LOSS RATIO(2) COMBINED RATIO(3) COMPANY 3M 07 3M 06 3M 07 3M 06 3M 07 3M 06 Companies operating primarily in Spain MOTOR(4) 14.8% 11.7% 75.4% 84.2% 90.2% 95.9% GENERAL 24.2% 27.1% 64.0% 67.6% 88.3% 94.7% HEALTH 15.5% 15.3% 78.3%
Slide 55: Provisional calendar for 2007
Provisional calendar for 2007 26/07/2007 Madrid Release of first half 2007 results 26/07/2007 Madrid Analysts' presentation, first half 2007 results 26/07/2007 London Analysts' presentation, first half 2007 results 30/10/2007 Madrid Release of third quarter 2007 interim results 30/10/2007 Madrid Ana
Slide 56: Investor Relations Department
Investor Relations Department Luigi Lubelli Finance Director +34-91-581-6071 Alberto Fernández Sanguino +34-91-581-2255 Beatriz Izard Pereda +34-91-581-2061 Antonio Triguero Sánchez +34-91-581-5211 Marisa Godino Alvarez Assistant +34-91-581-2985 MAPFRE Investor Relations Department Carretera de Pozu