Slide 1: First quarter results 2014
First quarter results 2014 Presentation for investors and analysts 5th May 2014
Slide 2: Contents
Contents 1 Key highlights 2 Consolidated financial information 3 Regional Areas 4 Financial supplement 5 Schedule and contacts 2
Slide 3: Key highlights
1 Key highlights A start to the year marked by organic business growth, the strength of the euro and the absence of non-recurring results Revenues 6,901.0 -0.6% Premiums 5,961.2 1.0% Managed savings 35,613.9 7.7% Non-life combined ratio 95.6% 0.5 p.p. ROE 9.2% 0.5 p.p. Shareholders' equity per share
Slide 4: Highlights of the first quarter results
1 Key highlights Highlights of the first quarter results Increase in premiums driven by business in Spain and Portugal, thanks to the strong growth in Life Assurance and the change in trend in MAPFRE FAMILIAR’s issuance. This, along with the business development at MAPFRE RE and MAPFRE ASISTENCIA, o
Slide 5: The impact of the euro's strength on results remains very significant
1 Key highlights The impact of the euro’s strength on results remains very significant At constant exchange rates, premiums would have grown 10% and results would have decreased by 12% Evolution of the key reference currencies for MAPFRE USD -3.1% TRY -19.3% BRL -22.1% VEF -33.9% Mar-12 mar-12 Jun-1
Slide 6: The final dividend will be fully paid in cash on 20th June
1 Key highlights The final dividend will be fully paid in cash on 20th June On 14th March, the AGM approved the payment of a final dividend against the 2013 results of €0.08 gross per share 2013 Final Thus, the outlay against the 2013 results amounts to dividend €400.3 million, which represents
Slide 7: Contents
Contents 1 Key highlights 2 Consolidated financial information 3 Regional Areas 4 Financial supplement 5 Schedule and contacts 7
Slide 8: Consolidated income statement
2 Consolidated financial information Consolidated income statement 3M 2013 3M 2014 U% NON-LIFE INSURANCE AND REINSURANCE Gross written and accepted premiums 4,464.7 4,362.8 -2.3% Premiums earned, net of ceded and retroceded reinsurance 3,208.4 3,182.2 -0.8% Net claims incurred and variation in other
Slide 9: Development of Non-Life insurance results
2 Consolidated financial information Development of Non-Life insurance results Non-Life Account U% U% 1Q 2013 4Q 2013 1Q 2014 4Q 2013 1Q 2013 Written and accepted premiums 4,464.7 3,843.0 4,362.8 13.5% -2.3% Underwriting result 157.1 45.3 139.1 207.1% -11.5% Net financial and other non-technical inc
Slide 10: Development of Non-Life insurance results: key highlights
2 Consolidated financial information Development of Non-Life insurance results: key highlights Reflect growth in: Premiums 9 Brazil and the USA 9 the Reinsurance and Assistance businesses 9 the change in trend in MAPFRE FAMILIAR’s issuance The decline versus the same period of 2013 is mainly due
Slide 11: Development of Non-Life insurance results: key highlights
2 Consolidated financial information Development of Non-Life insurance results: key highlights Net financial The y-o-y decrease is mainly due to: and other 9 the gains recognised in the first quarter of 2013 (€22.2 million from the sale of a income building in Istanbul, €20 million from positive e
Slide 12: Development of Life Assurance results
2 Consolidated financial information Development of Life Assurance results Life Account U% U% 1Q 2013 4Q 2013 1Q 2014 4Q 2013 1Q 2013 Gross written and accepted premiums 1,439.1 1,433.8 1,598.4 11.5% 11.1% Underwriting and financial result 105.5 39.4 133.6 239.1% 26.6% Unrealised gains from unit-lin
Slide 13: Development of Life Assurance results: key highlights
2 Consolidated financial information Development of Life Assurance results: key highlights Significant growth in Spain, driven by: 9 Life-Savings insurance in all channels Premiums 9 a corporate transaction, which amounted to €75 million Lower business volumes outside of Spain, due to: 9 the app
Slide 14: Development of results from Other Business Activities
2 Consolidated financial information Development of results from Other Business Activities Other Business Activities (1) U% U% 1Q 2013 4Q 2013 1Q 2014 4Q 2013 1Q 2013 Operating revenues 142.2 147.8 152.5 3.2% 7.2% Operating expenses -134.5 -165.4 -144.1 -12.9% 7.1% Net financial expenses & other -21
Slide 15: Development of results from Other Business Activities: key highlights
2 Consolidated financial information Development of results from Other Business Activities: key highlights Positive results at MAPFRE INMUEBLES, thanks to capital gains on the cancellation of Revenues liabilities Better performance of MAPFRE FAMILIAR’s non-insurance subsidiaries Growth of the
Slide 16: Consolidated result
2 Consolidated financial information Consolidated result U% U% 1Q 2013 4Q 2013 1Q 2014 4Q 2013 1Q 2013 Result on restatement of financial accounts -2.6 -16.9 -15.9 -5.9% 511.5% Result before tax and minority interests 458.7 276.7 438.1 58.3% -4.5% Taxes -112.6 -19.2 -127.8 565.6% 13.5% Result after
Slide 17: Development of the consolidated result: key highlights
2 Consolidated financial information Development of the consolidated result: key highlights Pre-tax Reduction of results in the Non-Life segment result Impact of the inflation adjustment on MAPFRE Venezuela’s accounts Strong improvement in Life Assurance Taxes The effective tax rate increase
Slide 18: Development of the balance sheet
2 Consolidated financial information Development of the balance sheet 31.3.13 31.12.13 31.3.14 Goodwill 2,185.6 1,928.4 1,936.0 Other intangible assets 2,330.8 1,969.5 1,998.2 Other fixed assets 320.3 326.2 325.4 Cash & equivalents 780.1 1,162.8 1,299.1 Investments & real estate 39,984.4 39,212.0 41
Slide 19: Development of the balance sheet: key highlights
2 Consolidated financial information Development of the balance sheet: key highlights Investments, shareholders’ Increase compared to 2013 year-end figures, as a result of: equity & reserves 9 larger business volumes 9 the strong decrease of spreads in Spain 9 the appreciation of the Brazilian rea
Slide 20: Development of equity
2 Consolidated financial information Development of equity Shareholders' Minority TOTAL TOTAL Equity interests 3M 2014 3M 2013 BALANCE AS AT PRIOR YEAR END 7,833.5 2,060.2 9,893.7 10,136.3 Additions and deductions accounted for directly in equity Investments available for sale 812.4 161.8 974.2 273.
Slide 21: Development of equity: key highlights
2 Consolidated financial information Development of equity: key highlights Investments available for sale Strong increase in the value of the Spanish portfolio as a result of the decline in spreads, offset to a large extent by shadow accounting Translation adjustments Positive impact, stemming f
Slide 22: Net financial income: selected information
2 Consolidated financial information Net financial income: selected information Breakdown of net financial income (before taxes) 3M 2013 3M 2014 U% Net financial income, Non-life 199.2 172.9 -13.2% - of which realised capital gains and impairments 51.3 24.5 -52.2% - of which foreign exchange gains/(
Slide 23: Variations in financial debt
2 Consolidated financial information Variations in financial debt Change 2011 2012 2013 1Q 2014 y-o-y Senior debt COMMERCE - 12/2013 153.7 151.0 0.0 --- --- Senior debt MAPFRE S.A. - 11/2015 --- 1,001.8 1,003.3 1,016.3 13.0 Subordinated debt - 7/2017 607.9 597.1 596.4 604.6 8.3 Syndicated credit fac
Slide 24: Contents
Contents 1 Key highlights 2 Consolidated financial information 3 Regional Areas 4 Financial supplement 5 Schedule and contacts 24 The information shown below reflects the new operational structure in force since 1st January 2014, which has been organised into Territorial and Regional Areas and which
Slide 25: Increase in issuance in Spain and significant contribution of reinsurance
3 Regional Areas Increase in issuance in Spain and significant contribution of reinsurance Premiums(1) Contribution to consolidated results Iberia 40% Other regions 60% Iberia 43% Other regions 57% EUR M % MAPFRE RE IBERIA 103.6 43.1% APAC 885.8 (13.6%) 23.2 (0.4%) BRAZIL 30.4 12.7% IBERIA LATAM NOR
Slide 26: Written premiums by Regional Areas
3 Regional Areas Written premiums by Regional Areas REGIONAL AREA 3M 2013 3M 2014 U% IBERIA 2,437.2 2,627.0 7.8% BRAZIL 1,235.7 1,174.1 -5.0% LATAM SOUTH 714.1 703.0 -1.6% NORTH AMERICA 496.0 486.0 -2.0% EMEA 341.2 324.2 -5.0% LATAM NORTH 304.6 300.2 -1.4% APAC 14.5 23.2 60.0% TOTAL REGIONAL AREAS 5
Slide 27: Attributable results by Regional Areas
3 Regional Areas Attributable results by Regional Areas REGIONAL AREA 3M 2013 3M 2014 U% IBERIA 149.0 103.6 -30.5% BRAZIL 23.4 30.4 29.9% LATAM SOUTH 48.7 22.4 -54.0% NORTH AMERICA 13.2 7.5 -43.2% EMEA 20.8 18.2 -12.5% LATAM NORTH 13.0 13.5 3.8% APAC 0.5 1.3 160.0% TOTAL REGIONAL AREAS 268.6 196.9 -
Slide 28: Information by Regional Areas and countries
3 Regional Areas Information by Regional Areas and countries (1) PREMIUMS RESULTS 3M 2013 3M 2014 U% 3M 2013 3M 2014 U% IBERIA 2,437.2 2,627.0 7.8% 211.8 176.6 -16.6% SPAIN 2,387.2 2,558.4 7.2% 211.5 177.0 -16.3% PORTUGAL 50.0 68.7 37.4% 0.3 -0.4 --- The increase in premiums reflects: 9 good growt
Slide 29: Information by Regional Areas and countries
3 Regional Areas Information by Regional Areas and countries PREMIUMS RESULTS(1) U % U % local local 3M 2013 3M 2014 U% currency(2) 3M 2013 3M 2014 U% currency(2) BRAZIL 1,235.7 1,174.1 -5.0% 17.6% 115.7 151.0 30.5% 61.2% LATAM SOUTH 714.1 703.0 -1.6% 57.0 32.8 -42.5% of which: COLOMBIA 196.0 152.9
Slide 30: Information by Regional Areas and countries
3 Regional Areas Information by Regional Areas and countries Brazil 9 growth in premiums, principally stemming from the Life-Protection business and the Agricultural & Livestock segment, thanks to the incentives given by the Government, which offset the slowdown in the Motor line resulting from th
Slide 31: Information by Regional Areas and countries
3 Regional Areas Information by Regional Areas and countries Peru 9 premiums growth mainly driven by Motor insurance Mexico 9 depreciation of the MXN against the EUR (-8.7%) 9 strong growth in the Life Assurance and Health & Accidents segments, which offset a slight contraction in Motor insuranc
Slide 32: Information by Regional Areas and countries
3 Regional Areas Information by Regional Areas and countries PREMIUMS RESULTS(1) U% U% local local 3M 2013 3M 2014 U% currency(2) 3M 2013 3M 2014 U% currency(2) NORTH AMERICA 496.0 486.0 -2.0% 17.9 9.0 -49.7% of which: USA 431.3 424.9 -1.5% 4.5% 16.4 6.9 -57.9% -75.6% PUERTO RICO 64.8 61.0 -5.9% -1.
Slide 33: Information by Regional Areas and countries
3 Regional Areas Information by Regional Areas and countries North America MAPFRE USA 9 increase in premiums in local currency, driven by Motor (+3.8%) and Home (+10.2%) insurance 9 larger loss ratio, €10 million of which resulted from severe weather-related claims (€9.3 million in 2013) 9 €7.8 mi
Slide 34: Information by Regional Areas and countries
3 Regional Areas Information by Regional Areas and countries The Philippines 9 depreciation of the PHP against the EUR (-13.0%) 9 decrease in premiums due to the non-renewal of a large contract in the Motor business 9 review of the losses arising from the “Yolanda” typhoon 34
Slide 35: Regional Areas: Key figures
3 Regional Areas Regional Areas: Key figures LATAM LATAM NORTH CONSOLID. IBERIA NORTH SOUTH BRAZIL EMEA AMERICA APAC REINSURANCE ADJUST. TOTAL Gross written and accepted 2,627.0 300.2 703.0 1,174.1 324.2 486.0 23.2 885.8 -562.3 5,961.2 premiums Net premiums earned 1,879.7 189.0 443.4 981.4 228.5 405
Slide 36: Contents
Contents 1 Key highlights 2 Consolidated financial information 3 Regional Areas 4 Financial supplement 5 Schedule and contacts 36
Slide 37: Operating companies: Key figures MAPFRE FAMILIAR
4 Financial supplement Operating companies: Key figures MAPFRE FAMILIAR 3M 2013 3M 2014* U% Gross written and accepted premiums 1,349.7 1,401.2 3.8% Net premiums earned 838.9 861.5 2.7% Underwriting result 52.4 30.6 -41.6% Net financial income 28.4 37.9 33.5% Other business activities 4.0 4.4 10.0%
Slide 38: Operating companies: MAPFRE FAMILIAR domestic business by insurance lines
4 Financial supplement Operating companies: Key figures MAPFRE FAMILIAR – Domestic business by insurance lines Motor 3M 2013 3M 2014 U% Health 3M 2013 3M 2014 U% Gross written and accepted premiums Gross written and accepted premiums 511.2 490.3 -4.1% 399.5 425.2 6.4% Net premiums earned 483.0 452.2
Slide 39: Operating companies: MAPFRE FAMILIAR (contd.) and MAPFRE EMPRESAS
4 Financial supplement Operating companies: Key figures MAPFRE FAMILIAR (contd.) MAPFRE EMPRESAS Other 3M 2013 3M 2014 U% 3M 2013 3M 2014 U% Gross written and accepted premiums 50.6 48.5 -4.2% Gross written and accepted premiums 220.6 202.6 -8.2% Net premiums earned 44.4 45.0 1.4% Net premiums earne
Slide 40: Operating companies: Key figures MAPFRE VIDA
4 Financial supplement Operating companies: Key figures MAPFRE VIDA 3M 2013 3M 2014 U% Breakdown of premiums 3M 2013 3M 2014 U% Technical Reserves excluding Regular Premiums 120.3 147.9 22.9% shadow accounting 18,364.6 18,330.5 -0.2% - Agents' and other channels 77.3 75.6 -2.2% Shadow accounting adj
Slide 41: Operating companies: Key figures MAPFRE VIDA
4 Financial supplement Operating companies: Key figures MAPFRE VIDA Managed savings 3M 2013 3M 2014 U% Change in funds under management(1) 3M 2013 3M 2014 Regular premiums insurance 4,618.6 5,031.8 8.9% (2) IFRS technical reserves 339.2 1,086.9 - Agents' channel and others 3,201.2 3,543.1 10.7% Vari
Slide 42: Operating companies: MAPFRE GLOBAL RISKS and MAPFRE ASISTENCIA
4 Financial supplement Operating companies: Key figures MAPFRE GLOBAL RISKS MAPFRE ASISTENCIA 3M 2013 3M 2014 U % 3M 2013 3M 2014 U% Gross written and accepted premiums 253.2 226.4 -10.6% Operating income 274.8 288.0 4.8% - Global Risks 226.8 196.1 -13.5% - Gross written and accepted premiums 231.6
Slide 43: Operating companies: MAPFRE BRASIL
4 Financial supplement Operating companies: Key figures MAPFRE BRASIL MAPFRE BRASIL (by lines) 3M 2013 3M 2014 U% Non-Life 3M 2013 3M 2014 U% Gross written and accepted premiums 770.1 758.3 -1.5% Gross written and accepted premiums 1,203.9 1,154.5 -4.1% Net premiums earned 616.1 613.6 -0.4% Net prem
Slide 44: Operating companies: MAPFRE RE
4 Financial supplement Operating companies: Key figures MAPFRE RE MAPFRE RE (by lines) 3M 2013 3M 2014 U % Non-Life 3M 2013 3M 2014 U % Gross written and accepted premiums 775.2 788.0 1.7% Gross written and accepted premiums 875.4 885.8 1.2% Net premiums earned 443.3 398.9 -10.0% Net premiums earned
Slide 45: Operating companies: Key figures MAPFRE USA
4 Financial supplement Operating companies: Key figures MAPFRE USA 3M 2013 3M 2014 U % Gross written and accepted premiums 385.8 387.9 0.5% Net premiums earned 332.9 337.7 1.4% Underwriting result -13.4 -19.0 41.8% Net financial income 31.2 23.3 -25.3% Other business activities 0.0 0.0 --- Other non
Slide 46: Financial result: selected information
4 Financial supplement Financial result: selected information Realisation gains, impairments and other financial results Realisation Other financial Impact on pre-tax gains results result 3M 2013 3M 2014 3M 2013 3M 2014 3M 2013 3M 2014 MAPFRE FAMILIAR 11.1 12.1 3.6 11.1 15.7 MAPFRE EMPRESAS 1.3 3.4
Slide 47: Contents
Contents 1 Key highlights 2 Consolidated financial information 3 Regional Areas 4 Financial supplement 5 Schedule and contacts 47
Slide 48: 2014 Provisional Schedule
5 Schedule and contacts 2014 Provisional Schedule Release First Quarter 2014 Results 5-May-14 Madrid Conference Call – First Quarter 2014 Results 6-May-14 London Presentation to analyst – First Quarter 2014 Results Release First Half 2014 Results 24-July-14 Madrid Conference Call – First H
Slide 49: Investor Relations Department
5 Schedule and contacts Investor Relations Department Luigi Lubelli Deputy General Manager – Finance +34-91-581-6071 Deputy Director Capital Markets Natalia Núñez Arana +34-91-581-8664 Head of Investor Relations Alberto Fernández-Sanguino Investor Relations +34-91-581-2255 Antonio Triguero Sánchez I
Slide 50: 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