Slide 1: Activity Update Analyst & Investor presentation 12M 2023
Activity Update Analyst & Investor presentation 12M 2023 February 14th 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: Opening Remarks: MAPFRE continues growing despite uncertainty
ACTIVITY UPDATE – 12M 2023 OPENING REMARKS MAPFRE CONTINUES GROWING DESPITE UNCERTAINTY Advances in technical management Significant improvement in Geographical and business Combined Ratio profitability, diversification: Life, Spain, LATAM and improving by almost 1 p.p reinsurance leading profitable
Slide 4: Key Figures
ACTIVITY UPDATE – 12M 2023 KEY FIGURES 26,917 32,239 +9.7% +9.2% 692 767 +7.7% +19.4% ** PREMIUMS REVENUE NET RESULT 97.2% ‐0.8 p.p 189.7% Excluding transitional measures 9.0% 9.9% +0.9 p.p +1.8 p.p ** NON‐LIFE SOLVENCY II ROE COMBINED RATIO RATIO* Million euros *Data at September 2023 excluding tra
Slide 5: Key Highlights
ACTIVITY UPDATE – 12M 2023 KEY HIGHLIGHTS LIFE NON‐LIFE Strong premium growth (+8.4%) Excellent growth (+14.6%) Consolidation of improvement in combined ratio AUTO FINANCIAL INCOME Improved profitability (+12%) Strict focus on tariffs and Recurring investment underwriting to return to result up 26%*
Slide 6: 2023 Dividends: Proven commitment to shareholders
ACTIVITY UPDATE – 12M 2023 2023 DIVIDENDS PROVEN COMMITMENT TO SHAREHOLDERS with an increase in the final dividend 15 Cents per share 462 mn€ ≈7.7% ≈67% 2023 dividend* 2023 dividend* Average dividend yield** Payout *Total dividend against 2023 fiscal year includes the interim dividend of €0.06 paid
Slide 7: Premiums
ACTIVITY UPDATE – 12M 2023 PREMIUMS TOTAL PREMIUMS REVENUE €26,917M +9.7% +9.8%* MAIN LINES INSURANCE +8.4% +14.6% Local accounting 7 Million euros / * At constant exchange rates
Slide 8: Key Figures and Ratios
ACTIVITY UPDATE – 12M 2023 KEY FIGURES AND RATIOS KEY FIGURES BY REGIONS AND BUSINESS UNITS ROE (main markets/units) Premiums Net result Non‐Life Combined ratio 12M 2023 12M 2023 Δ% 12M 2023 Δ% 12M 2023 Δ% IBERIA 8,832.6 15.8% 361.0 ‐3.9% 99.9% 3.0 p.p BRAZIL 24.3% BRAZIL 5,136.0 5.9% 233.0 62.1% 78
Slide 9: Key Figures > Auto
ACTIVITY UPDATE – 12M 2023 KEY FIGURES > AUTO Premiums Insured units Attributable result Combined Ratio 12M 12M Units 12M 12M 12M 12M Δ% Δ% 2022 2023 (mn) 2022 2023 2022 2023 MAPFRE GROUP 5,912 6,109 3.3% 13.53 ‐3.4% ‐57.3 ‐67.6 106.1% 106.0% IBERIA 2,267 2,388 5.3% 6.11 ‐1.8% 15.1 ‐17.9 100.9% 103.
Slide 10: Key Figures > General P&C
ACTIVITY UPDATE – 12M 2023 KEY FIGURES > GENERAL P&C Premiums Attributable result Combined Ratio 12M 2022 12M 2023 Δ% 12M 2022 12M 2023 12M 2022 12M 2023 MAPFRE GROUP 7,658 8,491 10.9% 259.7 216.6 87.9% 87.6% BRAZIL 2,722 2,929 7.6% 106.8 134.0 75.0% 69.8% IBERIA 2,328 2,549 9.5% 119.2 50.2 93.8% 10
Slide 11: Key Figures > Life Business
ACTIVITY UPDATE – 12M 2023 KEY FIGURES > LIFE BUSINESS Premium growth > Insurance units Life technical‐financial result 12M 2022 12M 2023 Δ YoY Total MAPFRE Group* 721.9 809.3 12.1% 19.7% Total Insurance Units 714.8 789.0 10.4% 4.7% of which: IBERIA 259.6 256.8 ‐1.1% 4.9% BRAZIL 352.1 421.5 19.7% OT
Slide 12: Capital Position & Credit Metrics
ACTIVITY UPDATE – 12M 2023 CAPITAL POSITION & CREDIT METRICS Leverage Ratio (%) 12.31.2020 12.31.2021 12.31.2022 12.31.2023 %Δ YTD 25% Reference 23% framework Shareholders' equity 8,536 8,464 7,289 8,071 10.7% Non‐controlling interests 1,302 1,203 1,071 1,143 6.7% Total equity 9,838 9,667 8,360 9,21
Slide 13: Dividend Upstreaming
ACTIVITY UPDATE – 12M 2023 DIVIDEND UPSTREAMING Dividends upstreamed from subsidiaries to holding companies* (€mn) 2021 2022 2023 IBERIA 346 813** 345 of which: MAPFRE ESPAÑA 228 393 75 MAPFRE VIDA 118 421 270 INTERNATIONAL 219 150 201 of which: BRAZIL 85 57 140 OTHER LATAM 65 52 44 NORTH AMERICA 64
Slide 14: Assets Under Management
ACTIVITY UPDATE – 12M 2023 ASSETS UNDER MANAGEMENT Market value 12.31.2023 %Δ Government fixed income 22.7 14.6% Spain 9.7 8.7% Italy 2.5 2.7% Rest of Europe 1.7 ‐6.8% United States 1.7 73.3% Brazil 3.3 22.4% Rest of LATAM 2.6 31.2% Other 1.1 22.3% Corporate fixed income 8.2 10.7% Real Estate* 1.8 ‐
Slide 15: Investment Portfolio
ACTIVITY UPDATE – 12M 2023 INVESTMENT PORTFOLIO Eurozone – Fixed income portfolios – Active management Net Financial Income – Non‐Life Market value Accounting Market yield Modified 2022 2023 Δ% (€bn) Yield (%) (%) duration (%) IBERIA 117 178 52% IBERIA NON‐LIFE* 12.31.2022 3.00 2.16 3.60 8.97 BRAZIL
Slide 16: IFRS 17&9 Main KPIs
IFRS 17&9 MAIN KPIs IFRS 17&9 Local accounting* 2022 2023 %∆ 2022 2023 %∆ Premiums ‐ ‐ ‐ 24,540 26,917 9.7% Insurance revenue** 22,717 24,781 9.1% ‐ ‐ ‐ Net result 564 677 20.2% 642 692 7.7% Total assets 52,197 54,947 5.3% 59,626 62,998 5.7% Shareholders’ equity 7,797 8,467 8.6% 7,289 8,071 10.7% Te
Slide 17: IFRS 17&9 Key Figures by Region and Business Unit
IFRS 17&9 KEY FIGURES BY REGION AND BUSINESS UNIT Insurance revenue Attributable result AREA / BUSINESS UNIT 2022 2023 Δ% 2022 2023 Δ% IBERIA 6,517.4 6,978.1 7.1% 187.0 341.4 82.6% BRAZIL 4,234.6 4,823.7 13.9% 138.6 227.5 64.2% OTHER LATAM 4,202.6 4,451.0 5.9% 185.3 120.6 ‐34.9% NORTH AMERICA 2,551.
Slide 18: IFRS 17&9 Reconciliation P&L – December 2023
IFRS 17&9 RECONCILIATION P&L – December 2023 IFRS 17 impacts: IFRS 9 impacts: TOTAL (45) 30 IMPACTS (15) * 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
Slide 19: IFRS 17&9 Shareholders' Equity – December 2023
IFRS 17&9 SHAREHOLDERS’ EQUITY – December 2023 Change in Shareholders’ Equity Reconciliation Shareholders’ Equity Balance at 1 January 2023 7,797 IFRS 17 IMPACTS Currency conversion differences 64 301 Change in market value of financial assets 680 Change in technical provision (320) valuation (Life
Slide 20: IFRS 17&9 Loss Component & Risk Margin
IFRS 17&9 LOSS COMPONENT & RISK MARGIN Loss Component – Closing balance BBA VFA PAA(1) TOTAL ∆% 2022 2023 2022 2023 2022 2023 2022 2023 IBERIA 10 17 9 6 35 40 54 63 15.8% BRAZIL 1 0 9 1 49 53 58 54 ‐7.9% OTHER LATAM 17 86 1 0 4 5 22 92 314.7% EMEA 2 (0) ‐‐ ‐‐ 44 54 46 54 17.3% NORTH AMERICA 0 0 ‐‐ ‐
Slide 21: CSM Roll Forward
IFRS 17&9 CSM ROLL FORWARD Dec. 2023 CSM Net of tax and non‐ controlling interests Δ CSM: +296 1,522 Of which: Of which: Δ CSM before release: +651 IBERIA: 1,687 IBERIA: 118 BRAZIL: 570 BRAZIL: 213 OTHER LATAM: 250 EMEA: 90 21 Million euros
Slide 22: Strategic Plan: Financial Targets
STRATEGIC PLAN FINANCIAL TARGETS GROWTH EFFICIENCY AND PRODUCTIVITY PEOPLE AND SUSTAINABILITY PREMIUMS COMBINED RATIO GENDER PAY GAP Target: Target: Target: 5% ‐ 6% ≈ 96% +/‐1% Average growth on a like for like basis Average stripping out non‐recurring & catastrophic items 9.8% 0.9% gap 97.2% 2023 2
Slide 23: Strategic Plan: Reference Framework
STRATEGIC PLAN REFERENCE FRAMEWORK SOLVENCY II RATIO PAYOUT LEVERAGE RATIO Reference framework Reference framework Reference framework 175% ‐ 225% ≥50% 23% ‐ 25% 198.1% 67% 22.7% Sept. 2023 including transitionals* 2023 2023 *Data at September 2023 including transitional measures. The ratio excludin
Slide 24: Looking Ahead
LOOKING AHEAD FLEXIBILITY: OPPORTUNITIES ADAPTING TO CHANGING FOR GROWTH ENVIRONMENT RETURN TO PROFITABILITY IN AUTO 24
Slide 25: Investor Relations Contacts and Upcoming Events
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 26: Annex
92 MAPFRE Annex
Slide 27: IFRS 17&9 Balance Sheet 12.31.2023 vs. 12.31.2022
IFRS 17&9 BALANCE SHEET 12.31.2023 vs. 12.31.2022 ASSETS 12.31.2022 12.31.2023 %∆ EQUITY AND LIABILITIES 12.31.2022 12.31.2023 %∆ A) INTANGIBLE ASSETS 2,790 2,680 ‐3.9% A) EQUITY 8,870 9,656 8.9% B) PROPERTY, PLANT AND EQUIPMENT 1,303 1,184 ‐9.1% I. Equity attributable to the controlling company's s
Slide 28: IFRS 17&9 Breakdown of CSM
IFRS 17&9 BREAKDOWN OF CSM 12.31.2023 CSM net of non‐ CSM CSM CSM net of REGION controlling interest 12.31.2022 12.31.2023 taxes and taxes IBERIA 1,532 1,686 1,265 1,254 BRAZIL 456 570 337 96 OTHER LATAM 246 250 174 155 EMEA 68 90 59 15 NORTH AMERICA 2 3 2 2 TOTAL 2,304 2,600 1,837 1,522 28 Million
Slide 29: P&L - December 2023
IFRS 17&9 P&L ‐ December 2023 12M 2022 12M 2023 %∆ I. INSURANCE REVENUE 22,717 24,781 9.1% 1. Release of liability for remaining coverage 22,544 24,579 9.0% 1.1 Claims and other expected insurance service expenses 1,025 1,099 7.3% 1.2 Changes in the non‐financial risk adjustment 24 25 2.4% 1.3 Relea
Slide 30: 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 31: 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 32: Terminology (I/II): Local homogenized accounting
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 33: Terminology (II/II): IFRS
TERMINOLOGY (I/II) IFRS Insurance revenue + Reinsurance revenue + Insurance/Reinsurance finance revenue + Finance revenue not related to Insurance service + Reversal of Income / Total Income / financial asset impairment provision + Result from equity‐accounted companies + Other non‐technical revenue