Slide 1: Antonio, Chairman and CEO of MAPFRE: Results
ANTONIO Chairman ani d CEO of MAPFRE =RESULTS
Slide 2: Sustainability, reinforcing the balance sheet, commitment to shareholders
SUSTAINABILITY: €702 million generated in the fiscal year*. REINFORCING THE BALANCE SHEET: Goodwill writedown in the amount of €173 million. COMMITMENT TO SHAREHOLDERS: Dividend maintained (€447 million charged against 2018 results). *Excluding goodwill impairment, net earnings stand at 529 million
Slide 3: Key aspects
KEY ASPECTS FREQUENCY IMPACT OF INSTABILITY OF 3 OF CATASTROPHIC CONVERSION FINANCIAL RISKS DIFFERENCES MARKETS Dollar –3.5% All currencies IMPACT Real –15.8% decline against the euro. Lira –25.0% Financial income affected by 2017: prolonged low interest IMPACT 2018 €184 million rate environment €1,
Slide 4: Key aspects of the year
KEY ASPECTS OF THE YEAR FOCUS ON PROFITABLE GROWTH SOLVENCY II 208% ** 4 RATIO SPAIN * -* PRINCIPAL SOLIDITY OF RELEVANT EARNINGS MAPFRE RE IMPROVEMENTS CONTRIBUTOR IMPROVED FITCH STANDARD & Mexico RATINGS AND POOR’S €481M €149M Italy OUTLOOK MOODY’S Net earnings Net earnings Global Risks Asistencia
Slide 5: The figures at a glance
THE FIGURES AT A GLANCE ATTRIBUTABLE EARNINGS NON-LIFE 5 COMBINED RATIO 702 (+0.3%) w/o goodwill 529 97.6% writedown -24.5% - 0.5 p.p PREMIUMS +2.1% at constant 22,537 exchange rates -4% ROE* CONSOLIDATED REVENUE 6.4% +0.8% at constant exchange rates 26,590 -1.5 p.p -5% Millons of euros *8.4% exclud
Slide 6: Premiums/earnings by business area
PREMIUMS/EARNINGS BY BUSINESS AREA PREMIUMS NET EARNINGS 6 INSURANCE 18,736 685 -3% RE INTERNATIONAL +4%* 3,787 LATAM 47 157 -10% IBERIA 481 149 24 -10 ASISTENCIA GLOBAL RISKS 911 1,174 -17% -8% +136% +85% -7% -7% INSURANCE RE GLOBAL ASISTENCIA RISKS Millions of de euros Data not adjusted for consol
Slide 7: Insurance unit premiums by region
INSURANCE UNIT PREMIUMS BY REGION 18,736 IN PREMIUMS -3% 7,658 7 +4%* 3,972 2,425 1,766 1,606 1,309 +10% -13% -4% -6% -5% -26% IBERIA BRAZIL NORTH AMERICA EURASIA LATAM SOUTH LATAM NORTH Millions of euros *Data in blue at constant exchange rates
Slide 8: A diversified business: distribution of premiums
A DIVERSIFIED BUSINESS DISTRIBUTION OF PREMIUMS AUTO 8 HEALTH 5.1% (4.8%) 27.9% (28.1%) LIFE 19.8% (18%) P&C REINSURANCE 25.2% (26.8%) 22% (22.3%) (%) Prvious year Data not consolidated
Slide 9: Financial objectives 2016-2018
FINANCIAL OBJECTIVES 2016-2018 9 Combined Expense Revenues ROE Payout Ratio Ratio >€31,000M >11% 50-65% <96% <28% 97.6% 27.8% €26,590M 8.4% 64% Affected by natural €2,800M in premiums at 6.4% including goodwill 84% including goodwill disasters constant exchange rates* writedown writedown 96.8% €1,30
Slide 10: Fernando Mata, CFO and Member of the Board
FERNANDO MATA CFO and Member of the Board E SU LT ; , MAPFRE,
Slide 11: Revenues and premiums
REVENUES AND PREMIUMS CONSOLIDATED REVENUES 17,061 €26,590M -5% 11 5,476 2,575 1,478 -6% + 2,8% - 8,1% -13,2% +0.2%* +8.5%* NON-LIFE LIFE FINANCIAL OTHER INCOME TOTAL PREMIUMS (LIFE / NON-LIFE) € 22,537M in 2018 -4% +2.1%* Millions of euros *Data in blue are at constant exchange rates
Slide 12: Earnings breakdown
EARNINGS BREAKDOWN NET EARNINGS €529M -24.5% 12 912 682 702 529 -90 -453 -349 -173 -3.6% -5.3% + 42.6% +10.4% - 12.4% +0.3% - NON-LIFE LIFE OTHER TAXES NON- OPERATING GOODWILL NET CONCEPTS* CONTROLLING RESULT WRITEDOWN EARNINGS INTERESTS Millions of euros *Includes other activities, Holding costs an
Slide 13: ROE
ROE ROE GROUP 8.4%* 13 12.3% 11.6% 11% 7.1% 7% 5.3% 2.8% 1.9% SPAIN RE LATAM LATAM GLOBAL BRAZIL NORTH EURASIA SOUTH NORTH RISKS AMERICA *6.4% including goodwill writedown
Slide 14: Regional combined ratios
REGIONAL COMBINED RATIOS GROUP COMBINED RATIO +97.6% 14 90.8% Automobile 91.9% 93.8% 96.1% 97.3% 98.1% 98.5% 102.1% 106.7% GLOBAL IBERIA MAPFRE LATAM LATAM BRAZIL NORTH EURASIA RISKS RE SOUTH NORTH AMERICA
Slide 15: Group overview
GROUP OVERVIEW 15 TOTAL ASSETS 67,570 67,291 -0.4% DEC. 2017 DEC. 2018 -€617M SHAREHOLDERS’ EQUITY -7% 8,611 529 -447 -329 -103 -267 7,994 BALANCE RESULT FOR UNREALIZED CURRENCY BALANCE DIVIDEND OTHER 01/01/2018 THE PERIOD GAINS DIFFERENCES 01/01/2019 Millions of euros
Slide 16: Investments and cash
INVESTMENTS AND CASH INVESTMENT €27,596M PORTFOLIO 49,274 -1% IN PUBLIC DEBT 16 CONCEPT € FIXED INCOME AND OTHER Spain 15,998 83% Rest of Europe 5,050 United States 1,347 CASH EQUITIES Brazil 2,872 AND FUNDS REAL ESTATE 5% 8% Latin America - Rest 1,805 4% Other countries 525 €27,596M in public debt
Slide 17: Capital and solvency
CAPITAL AND SOLVENCY CAPITAL STRUCTURE SOLVENCY 17 €11,868M SOLVENCY II RATIO 207.9% * EQUITY 78% SENIOR DEBT 8% Tier 1 €8,110m (88%) SUBORDINATED DEBT 9% OTHER BANK DEBT 5% Tier 2 €1,106m (12%) COVERAGE RATIO 22% *3Q
Slide 18: Insurance business premiums regional breakdown: Iberia
INSURANCE BUSINESS PREMIUMS REGIONAL BREAKDOWN IBERIA SPAIN +10% 18 7,658 IN PREMIUMS GROWTH DRIVER 2,583 7,524 2,283 1,876 664 +16% +2% +14% +4% 134 LIFE AUTOMOBILE GENERAL HEALTH AND ACCIDENT P&C +10 % -4% SPAIN PORTUGAL INSURED VEHICLES 5,740,018 (units) +2.4% Millions of euros
Slide 19: Latin America premiums breakdown
INSURANCE BUSINESS REGIONAL PREMIUMS BREAKDOWN LATAM NORTH LATIN AMERICA 6,887 IN PREMIUMS -14% 719 19 -39% 204 131 77 BRAZIL -6% +5% +6% -13% LATAM +3.7%* NORTH +9%* -3%* +13%* +12%* -26% MEXICO** PANAMA DOMINICAN HONDURAS 3,972 1,309 REP. 1,606 LATAM SOUTH 491 391 +5% -1% 289 200 LATAM -6% -31% SO
Slide 20: International premiums breakdown
INSURANCE BUSINESS REGIONAL PREMIUMS BREAKDOWN 2,425 INTERNATIONAL 4,191 IN PREMIUMS -5% 20 1,766 2,038 -3% NORTHEAST +0.5%* REGION 1,624 486 474 390 387 327 62 -4% -6% -7% -26% +1% +11% +18% +5% +42% -4%* -1%* +23%* +56%* NORTH EURASIA USA TURKEY ITALY MALTA PUERTO GERMANY INDONESIA AMERICA RICO Mi
Slide 21: Share price
SHARE PRICE MAPFRE S.A IBEX 35 STOXX INSURANCE 600 2018 2016-2018 21 MAPFRE -13% +0.4% -10% -13% -15% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec IBEX 35 -15% -10.5% 2018 MARKET Stoxx CAPITALIZATION 7,145 Insurance -10% -9.2% at 12-31-18 600 Millions of euros
Slide 22: Key social aspects of the period: equality, mobility
KEY SOCIAL ASPECTS OF THE PERIOD functional and gender geographic Equality Mobility 40.8% WOMEN MANAGERS OBJECTIVE 2018: 40% +12.1% OBJECTIVE 2018: 10%
Slide 23: Key social aspects of the period: inclusion
KEY SOCIAL ASPECTS OF THE PERIOD Corporation tax: €453M (34%) Number of eomployees: social 35,390 (97% permanent) Inclusion Opportunities for more than 252,000 people (distributors, providers etc.) 2.5% OF WORKFORCE COMPRISING OBJECTIVE PEOPLE WITH DISABILITIES2018: 2%
Slide 24: Antonio, Chairman and CEO of MAPFRE: Results
ANTONIO Chairman ani d CEO of MAPFRE =RESULTS
Slide 25: We maintain the remuneration to our shareholders
AS A RESULT OF ALL OF THIS… WE MAINTAIN THE REMUNERATION TO OUR SHAREHOLDERS DIVIDEND FOR THE FINANCIAL YEAR: €0.145 per share charged against 2018 results. In total, €447 million PAYOUT OF 84% IN 2018 (64% excluding €1,341M goodwill writedown) To shareholders, 5.5% entirely in cash, for Return over
Slide 26: Sustainability results
Sustainability and of growth results 2018: €702M* PREMIUMS 2017: € 700M +3%** *Net earnings are 529 million euros including goodwill writedown ** Eliminating the effect of the PEMEX policy and Life groups at constant exchange rates
Slide 27: Strengths of MAPFRE in Spain
STRENGTHS of MAPFRE in Spain MAPFRE (+8%) beats the market (1.3%), and enjoys best growth rate in Spain among the Top 5.ntre las 5 primeras. The company’s market share in Spain is up, standing at 11.3% (against 10.6% for the previous year). Spectacular growth in Life (+20.03%), while the markets fal
Slide 28: Growth levers
GROWTH LEVERS NEW BANCASSURANCE AGREEMENTS DIGITAL BUSINESS Digital business premiums: €1,509M +10% vs. 2017 +51% 2016-2018 INNOVATION MAPFRE Open Innovation
Slide 29: Financial strengths of the year
FINANCIAL STRENGTHS OF THE YEAR RATINGS SOLVENCY QUALITY POSITION OF CAPITAL COVERAGE EXPENSE TECHNICAL RESULT RATIO RATIO COMBINED RATIO
Slide 30: Conclusions
conclusions MAPFRE DELIVERS Financial strength and prudent management facilitate maintaining commitment to shareholders. MAPFRE IS TRANSFORMING Restructuring undertaken puts the company in an excellent competitive position to grow profitably over the next three years.
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