Slide 1: Presentation of Annual Results 2015
Antonio Huertas Chairman and CEO of MAPFRE Presentation of Annual Results MAPFRE in 2015 February 10, 2016
Slide 2: MAPFRE results
2 2015 Results MAPFRE results 2014 2015 ∆% Consolidated revenue 26,367 26,702 + 4.1 Premiums 21,816 22,312 + 2.3 Attributable profit 845 709 - 16.1 Combined ratio* 95.8 98.6 + 2.8 p.p. Millions of euros. * Non-Life combined ratio.
Slide 3: Highlights of 2015
3 Key Highlights Highlights of 2015 Increase in insurance premiums in local currency in most countries Results affected by the winter storms in the USA, which raised the Combined Ratio by 1.3 points Spain: return to growth in Motor; above-market rises in Home and Health
Slide 4: Highlights of 2015
4 Key Highlights Highlights of 2015 Allocation of provisions in some countries to mitigate volatility in results over the coming years The reinsurance business, which contributes more than 15 percent of premiums, improved by 11.6 percent Mutual funds and managed portfolios in Spain increased by 9 pe
Slide 5: MAPFRE is growing in its strategic markets
5 A Global Company MAPFRE is growing in Turkey its strategic markets Spain Premiums (local currency) +41.3% Non-Life premiums +1.8% Health +7.4% Automobile +0.9% 27.8% USA Premiums (local currency) +8.7% Premium distribution Brazil Mexico Premiums (local currency) +3.6% Premiums (local currency) +62
Slide 6: Business Units
6 Business performance Business Units Insurance Premiums: €18,415 million +0.6% business Net profit: €675 million -15.3% Premiums: €3,732 million +11.6% Reinsurance Net profit: €153 million +7.8% Global Premiums: €1,175 million +12% Risks Net profit: €58 million +32.8% Revenue: €1,210 million +6.4%
Slide 7: Doing business in more than 100 countries
7 A Global Company Key facts and figures 34 +38,400 5,848 +80,000 million employees offices intermediaries clients Doing business in more than 100 countries
Slide 8: Client focused: Solid position in all business lines
8 A Global Company CLIENT FOCUSED: Solid position in all business lines Automobiles Companies +13.2 million insureds Nearly 2 million companies insured Home Global Risks +5 million insureds +3,000 companies insured Health Reinsurance Nearly 2 million insureds +1,600 ceding companies in 105 countries
Slide 9: MAPFRE in 2015: Detailed Analysis of Results
MAPFRE in 2015 Detailed Analysis of Results February 10, 2016 Esteban Tejera Vice Chairman of MAPFRE
Slide 10: A few basic figures: Results
10 A few basic figures: Results 2014 2015 % CONSOLIDATED REVENUE 26,367 26,702 + 4.1 PREMIUMS 21,816 22,312 + 2.3 ATTRIBUTABLE PROFIT 845 709 - 16.1 NON-LIFE COMBINED RATIO 95.8 98.6 + 2.8 p.p. Million euros
Slide 11: A few basic figures: balance sheet and managed savings
11 A few basic figures: balance sheet and managed savings 2014 2015 % (1) EQUITY 11,469 10,408 - 9.3 (2) TOTAL ASSETS 65,415 63,489 - 2.9 MANAGED SAVINGS 37,795 37,917 + 0.3 Million euros 1. Includes minority interests 2. Includes technical provisions for Life Insurance, Mutual Funds and Pension Fun
Slide 12: Investment portfolio: breakdown by type
12 A cautious investment policy adjusted to the insurance business Investment portfolio: breakdown by type Cash 989.1 (2.1%) Mutual Funds 1,284.2 (2.8%) Equities 1,473.2 (3.2%) Other investments(2) 3,429.3 (7.4%) Property 2,267.7 (4.9%) Fixed Income – Government(1) € 46,264.7 26,412,3 (57.1%) Corpor
Slide 13: Contribution to attributable results and premiums
13 A cautious investment policy adjusted to the insurance business Contribution to Premiums attributable results MAPFRE RE 3,731.9 (15.6%) EUR M % APAC IBERIA 494.8 57.9% 114.6 (0.5%) BRAZIL 153.4 18.0% LATAM NORTH IBERIA NORTH AMERICA -32.7 -3.8% 1,849.6 (7.7%) 6,696.7 (27.8%) LATAM SOUTH 49.4 5.8%
Slide 14: Strict prudent measures adopted in 2015 for profitable growth
14 Strict prudent measures were adopted in 2015 in order to achieve profitable growth Increased provisions Alignment of Pricing Impact on earnings before tax underwriting standards increases Identification of unprofitable contracts and optimization of -54.5 Canceling of MAPFRE ASISTENCIA structure u
Slide 15: Income statement
15 Income statement NON-LIFE PREMIUMS: 17,441 million euros. (+6.5%) LIFE PREMIUMS: 4,871 million euros. (-10.6%) Million euros. Figures relate to written and accepted premiums
Slide 16: Iberia
16 Iberia TOTAL PREMIUMS: 6,697 million euros, 27.8 percent of the Group's total PREMIUMS 2015 % SPAIN 6,498 -2.5 PORTUGAL 199 -0.5 Changes in the Spain business cover: • Increase in premiums in the major Non-Life lines: Health, Motor, Home and Funeral • Contraction in Life insurance due to low inte
Slide 17: Iberia Insurance Spain: Non-Life
17 Iberia PREMIUMS 2014 2015 % Motor 2,026 2,044 + 0.9 Insurance Home 611 626 + 2.5 Spain Health 427 458 + 7.4 Non-Life Funeral 296 307 + 3.7 Entities Other 186 195 + 4.5 Companies 641 637 - 0.5 TOTAL NON-LIFE 4,352 4,429 + 1.8 Million euros.
Slide 18: Iberia Insurance Spain: Life and Savings
18 Iberia 2014 2015 % PREMIUMS 2,072 1,824 - 12 Life Insurance Spain MANAGED SAVINGS* 22,400 21,982 - 1.9 Life Technical Provisions Life & Savings Pension Funds 4,799 5,076 + 5.8 Entities Mutual Funds and Managed Portfolios 3,534 3,853 +9 TOTAL 30,733 30,911 + 0.6 Million euros. *Excluding the CX ef
Slide 19: LATAM
19 LATAM Premiums 2015 % BRAZIL 4,814 +3.6* LATAM SOUTH 1,963 +6.6** LATAM NORTH 1,850 +52.7 • Appreciation of local currency in Mexico (+62 percent), Peru (+27 percent), Argentina (+23 percent) and Chile (+13 percent) Figures relate to written and accepted premiums in millions of euros. *Percentage
Slide 20: International
20 International Premiums 2015 % NORTH AMERICA 2,777 +31.9 EMEA 1,982 +53.9 APAC 115 +13.2 • Premium volume in local currency rose by 8.7 percent in the USA, by 4.4 percent in Puerto Rico, by 41 percent in Turkey and by 43 percent in Malta • Direct Line Italy and Germany produced 374 million euros i
Slide 21: Assessment and Strategy
MAPFRE in 2015 ASSESSMENT AND STRATEGY Presentation of Annual Results February 10, 2016 Antonio Huertas Chairman and CEO of MAPFRE
Slide 22: Pillars of our growth strategy
22 Pillars of our growth strategy Focus on The Our global Growth profitable economic presence objectives growth context
Slide 23: The world economy at a crossroads
23 New Economic Scenario The world economy at a crossroads: Global relapse or growth consolidation? • Emerging markets suffering a sharp • Europe. Financial and • USA maintains momentum. Change slowdown. immigration tensions. in monetary policy. • China: GDP +6.9 percent, lowest • Deficit goals at r
Slide 24: Spain: Economic momentum, institutional uncertainty
24 New Economic Scenario Spain Economic momentum, institutional uncertainty Economic activity gathering momentum, consumption and The absence of inflation benefits Unemployment falling, though still investment improving the income of citizens very slowly GDP CPI Unemployment 25.6 23.7 20.9 3.2 2.7 2
Slide 25: Global insurance company: 5 continents
25 Global insurance Third largest Assistance company worldwide company: 5 continents Benchmark insurance company in the Spanish market Among the Top 15 reinsurance companies worldwide Top 20 in U.S. Automobile insurance sector No. 1 in Non-Life Leading multinational Insurance in insurance company in
Slide 26: Global Strategy: MAPFRE IBERIA
26 Global Strategy MAPFRE IBERIA 6,697 million euros in premiums 1 Leader in Non-Life | We insure one out of every 5 cars, one out of every 6 households We are double the no. 2 Multi-peril operator 2 NPS | Preferred company by consumers in Motor and Home. 6.8 million clients 3 Life: New Savings Insu
Slide 27: Global Strategy: MAPFRE LATAM (Brazil)
27 Global Strategy MAPFRE LATAM 8,037 million euros in premiums BRAZIL Leadership position with solid growth. BB 1 MAPFRE is the market leader. Results grew 11.6% in a context of economic recession. 2 Continued improvement in ROE: 15.5% in 2015 Exceptional operational efficiency 3 Growth forecast of
Slide 28: Global Strategy: MAPFRE LATAM (North and South)
28 Global strategy MAPFRE LATAM 8,037 million euros in premiums LATAM NORTH 1 Mexico | Pemex policy. Growth of 61%, above the market. No. 6 Non-Life company. 2 Central America | Excellent development, consolidating leadership in the region. LATAM SOUTH 3 Progressive development in digital business,
Slide 29: Global Strategy: MAPFRE International
29 Global Strategy MAPFRE INTERNATIONAL 3,855 million euros in premiums 1 USA | Reorganization of the business into four major regional divisions. Development of digital business. Good technical profitability without extraordinary atmospheric phenomena. 2 EMEA | Integration of Direct Line Germany an
Slide 30: 2013-2025 Strategic Plan
30 2013-2025 Strategic Plan: Definition of the Roadmap for the company Mission, Vision and Values New organizational and corporate structure: Global and Regional Corporate Areas Start-up of Strategic Global Models (Providers, Client Experience, Operational Efficiency, etc.)
Slide 31: 2013-2015: Creation of sustainable value for shareholders
31 2013-2015: Creation of sustainable value for shareholders 1,232 million euros in dividends in three years Earnings per share Average listed value of share 2012 2015 2010-2012 2013-2015 €0.22 €0.23 €2.30 €2.80 Net earnings 2010-2012 2013-2015 €666M €782M • Pay-out above 50% during the period • Ave
Slide 32: 2016-2018: Focus on profitable growth
32 The New Strategy 2016-2018: Focus on profitable growth We are prioritizing our growth in order to reach our objectives over the next three years We are focusing solely on growth opportunities that bring profitability
Slide 33: Four strategic lines for the next three years
33 The New Strategy Our Strategy for the next three years will be based on four strategic lines... Client Digital orientation transformation Excellence in Culture and technical internal talent management
Slide 34: Client orientation
34 Focus on profitable growth Client orientation Project for Client Segmentation. 2015: MAPFRE Client Model 2016: Spain, Mexico, USA, Brazil, Peru and Portugal Client Experience development project. 2015: Brazil, Colombia, Spain, Italy, Mexico, Peru, Turkey and the USA, and the automobile, home and
Slide 35: MAPFRE digital transformation project
35 Focus on profitable growth MAPFRE digital transformation project Greater capacity 2015 +200 projects to advance Simplification Improvement in digital transformation and productivity for action and streamlining and efficiency decision on the • New pricing generators and new of internal in launchin
Slide 36: Verti
36 Focus on profitable growth Development of digital business Italy and Germany - the first countries Verti where the VERTI brand will be used. will be our In Spain VERTI will maintain its digital complementary offering to that of MAPFRE online insurance brand worldwide Digital business accounts for
Slide 37: Admiral
37 Focus on profitable growth Development of digital business Agreement with Admiral to develop online insurance comparison Via a 50/50 joint tools in several countries, such as the one operating in venture: Preminen Spain with the brand Rastreator.com
Slide 38: Excellence in technical management
38 Focus on profitable growth Excellence in technical management • Process improvement • Corporate Technology Platform • MAPFRE Service Providers Model Underwriting Pricing Services
Slide 39: Culture and human talent
39 Focus on profitable growth Culture and human talent Developing People = Developing Talent • Global Talent Management Project • More than 500 collaboration agreements with some of the best universities and business schools in the world. • More than 1,000 scholarships in 2015
Slide 40: MAPFRE is committed to achieving its principal strategic objectives
40 MAPFRE is committed to achieving its principal strategic objectives Combined Ratio (%) Expense Ratio (%) Payout (%) Revenue (million euros) 98.6 30,000 25,889 25,652 26,702 97.3 96 96 <96.0 51 51 57 >50 29 28 29 28 2013 2014 2015 Objective 2013 2014 2015 Objective 2013 2014 2015 Objective 2013 20
Slide 41: Your most trusted global insurance company
Your most trusted global insurance company