Slide 1: Nine months 2013 results
Nine months 2013 results Presentation for investors and analysts 30th October 2013
Slide 2: Contents
Contents 1 Key highlights 2 Consolidated financial information 3 Business development 4 Appendix 5 Financial supplement 6 Schedule and contacts 2
Slide 3: Key highlights: Growing profits in a challenging environment
1 Key highlights Growing profits in a challenging environment Revenues 19,471.6 0.3% Premiums 16,558.7 -0.1% (1) Managed savings 33,216.2 9.9% Non-life combined ratio 95.3% 0.0 p.p. ROE 8.8% -2.7 p.p. (2) Solvency margin 2.53x Shareholders' equity per share 2.60 3.2% Attributable result 683.9 4.3% E
Slide 4: Highlights of the results
1 Key highlights Highlights of the results Appreciation of the Euro versus virtually all the reference currencies for MAPFRE, especially the Brazilian Real and the US Dollar Growth in Non-Life insurance, with an excellent combined ratio Decrease in Life Assurance premiums, along with an improvement
Slide 5: Evolution of the key reference currencies for MAPFRE
1 Key highlights At constant exchange rates, premiums would have grown 5.8% and results 9.4% Evolution of the key reference currencies for MAPFRE 1/1/2012 = Base 100 MXN +1.8% COP -3.2% USD -4.4% TRY -10.2% BRL -19.3% ARS -29.0% VEF -34.7% Jan-12 ene-12 Mar-12 mar-12 Jun-12 jun-12 Sep-12 sep-12 Dec-
Slide 6: Development of recurring results
1 Key highlights Development of recurring results 9M 2012 9M 2013 % REPORTED ATTRIBUTABLE RESULT 655.9 683.9 4.3% Investment portfolio: net realised capital gains -38.4 Greek fixed income 41.5 Impairment of equities 90.4 Gain from non-recurring exchange rate differences -9.8 Capital gain from the cr
Slide 7: Higher liquidity which reinforces our equity story
1 Key highlights Higher liquidity which reinforces our equity story Share price performance Shareholders’ structure as at 28.10.13 after placement Share price +8.4% +5.5% FREE FLOAT +5.0% 29.27% MAPFRE IBEX 35 STOXX INSURANCE FUNDACIÓN MAPFRE 67.74% BFA Trading volume 2.99% 10,078,237 +44% 6,984,303
Slide 8: Acquisition of a 20% stake in ABDA, Indonesia
1 Key highlights Investment in a profitable market with a great potential: acquisition of a 20% stake in ABDA Indonesia: key highlights ABDA: key figures Macro: 10th largest Non-Life insurance company in the country, with a market share of 2.5% at the end of 2011 Country with a great potential:
Slide 9: The interim dividend increases by 1 cent
1 Key highlights The interim dividend increases by 1 cent The Board of Directors has resolved to pay an interim dividend against the 2013 results of €0.05 gross per share 2013 Interim dividend Thus, the total dividend paid in the year amounts to €0.12 per share. In total, the outlay amounts to €
Slide 10: Consolidated financial information
1 Key highlights 2 Consolidated financial information 3 Business development 4 Appendix 5 Financial supplement 6 Schedule and contacts 10
Slide 11: The international business continues to drive the Group's growth
2 Consolidated financial information The international business continues to drive the Group’s growth Premiums(1) Contribution to consolidated results Spain 29% Abroad 71% Spain 46% Abroad 54% EUR M % Life Spain 1,837.1 (10.2%) Non-Life Abroad 243.5 32.8% Non-Life Spain 231.9 31.3% Life Abroad 1,931
Slide 12: Information by business areas
2 Consolidated financial information Information by business areas Contribution to premiums(1) Contribution to insurance results (2) (2) 9M 2012 9M 2013 9M 2012 9M 2013 Business area % % EUR M Business area % % EUR M SPAIN & PORTUGAL SPAIN & PORTUGAL 32.5% 29.1% 5,237.0 48.4% 46.1% 341.7 INSURANCE I
Slide 13: Development of Non-Life insurance results
2 Consolidated financial information Development of Non-Life insurance results Non-Life business – Main business areas Premiums Underwriting result Combined ratio (1) Business area 9M 2012 9M 2013(2) % 9M 2012 9M 2013(2) % 9M 2012 9M 2013(2) SPAIN & PORTUGAL INSURANCE 3,499.5 3,370.6 -3.7% 338.4 247
Slide 14: Development of Non-Life insurance results: key points
2 Consolidated financial information Development of Non-Life insurance results Non-Life Account Key points 9M 2012 9M 2013 % The good development of premiums reflects the growth of the international business, partly offset by Written and accepted 11,906.5 12,434.7 4.4% the appreciation of the Euro
Slide 15: Development of Life Assurance results
2 Consolidated financial information Development of Life Assurance results Life business – Main business areas Underwriting and financial Premiums result Business area 9M 2012 9M 2013(1) % 9M 2012 9M 2013(1) % SPAIN & PORTUGAL INSURANCE 2,272.5 1,866.4 -17.9% 152.1 186.9 22.9% MAPFRE BRASIL 1,453.9
Slide 16: Development of Life Assurance results: key points
2 Consolidated financial information Development of Life Assurance results Life Account Key points The variation reflects: 9M 2012 9M 2013 % – the growth of international direct insurance, on Gross written and accepted 4,665.4 4,124.0 -11.6% a like-for-like basis premiums – reclassification of bus
Slide 17: Development of results from Other Business Activities
2 Consolidated financial information Development of results from Other Business Activities Other Business Activities(1) Key points 9M 2012 9M 2013 % Reflects: — the growth of the services business at MAPFRE Operating revenues 366.7 388.9 6.1% ASISTENCIA — the consolidation of FUNESPAÑA Operating e
Slide 18: Consolidated result
2 Consolidated financial information Consolidated result 9M 2012 9M 2013 % Result on restatement of financial accounts -5.4 -26.3 --- Result before tax and minority interests 1,255.1 1,287.2 2.6% Taxes -371.3 -353.3 -4.8% Result after tax 883.8 933.9 5.7% Result after tax from discontinued operation
Slide 19: Balance sheet – key highlights
2 Consolidated financial information Balance sheet – key highlights 30.9.12 31.12.12 30.9.13 Goodwill 2,364.4 2,146.2 2,098.5 Other intangible assets 2,266.6 2,264.2 2,107.5 Reflects mainly the appreciation of the Euro Other fixed assets 427.1 306.7 326.0 Cash & equivalents 789.2 1,018.0 1,363.2 I
Slide 20: Shareholders' equity grows nearly €200 million
2 Consolidated financial information Shareholders’ equity grows nearly €200 million Statement of changes in equity Key points Shareholders' Minority TOTAL TOTAL Equity interests 9M 2013 9M 2012 BALANCE AS AT PRIOR YEAR END 7,810.5 2,325.8 10,136.3 9,726.6 Recovery in the market value of investment
Slide 21: Business development
1 Key highlights 2 Consolidated financial information 3 Business development 4 Appendix 5 Financial supplement 6 Schedule and contacts 21
Slide 22: Spain & Portugal Insurance Division: Key highlights
3 Business development Spain & Portugal Insurance Division Key highlights 9M 2012 9M 2013(1) % NON-LIFE BUSINESS 9M 2012 9M 2013(1) % Written and accepted premiums 3,499.5 3,370.6 -3.7% Written and accepted Underwriting result 338.4 247.1 -27.0% 5,772.0 5,237.0 -9.3% premiums 379.8 351.0 -7.6% Under
Slide 23: Highlights of the results in Spain
3 Business development Highlights of the results in Spain Premiums The decrease in premiums is the result of: evolution the deterioration of the market environment, characterised by a decline in the demand for insurance products the good performance of the agents’ channel in Life Assurance which
Slide 24: MAPFRE invests in Health insurance to attract 500,000 new clients
3 Business development MAPFRE invests in Health insurance to attract 500,000 new clients in the next 6 years Why Health? 1 Business line with large scale benefits: the additional growth will improve its profitability 2 There is pent-up demand for quality Health services over the medium and long term
Slide 25: Non-Life premiums and combined ratios in Spain
3 Business development Spain & Portugal Insurance Division Non-Life Premiums in Spain Combined ratios(1) in Spain 9M 2012 9M 2013 Combined ratio 92.8% 91.7% MOTOR 1,543.5 -8,9% MOTOR Loss ratio 76.6% 76.0% Expense ratio 16.2% 15.7% Combined ratio 80.2% 84.2% COMMERCIAL 498.0 -8,9% COMMERCIAL Loss ra
Slide 26: Life business in Spain: activity indicators
3 Business development Spain & Portugal Insurance Division Life business in Spain: activity indicators GROSS WRITTEN AND ACCEPTED PREMIUMS 9M 2012 9M 2013 % CHANGE IN FUNDS UNDER MANAGEMENT (1) 9M 2012 9M 2013 (2) Regular premiums 337.8 294.3 -12.9% IFRS technical reserves 298.3 664.3 Single premium
Slide 27: International Insurance Division: Key highlights
3 Business development International Insurance Division Key highlights MAPFRE AMÉRICA 9M 2012 9M 2013* % 9M 2012 9M 2013* % Written and accepted Gross written and accepted premiums 6,604.3 6,626.4 0.3% 8,270.0 8,586.0 3.8% premiums Underwriting and financial result 486.0 509.6 4.9% Other business ac
Slide 28: MAPFRE AMÉRICA: Premiums and results by countries
3 Business development International Insurance Division: MAPFRE AMÉRICA Premiums and results by countries PREMIUMS RESULTS (1) Local Local Currency Currency COUNTRY 9M 2012 9M 2013* % % 9M 2012 9M 2013* % % BRAZIL 3,577.1 3,791.6 6.0% 19.7% 360.4 373.7 3.7% 17.1% VENEZUELA 562.6 645.7 14.8% 66.3% 37
Slide 29: MAPFRE AMÉRICA: Highlights of the Unit
3 Business development International Insurance Division: MAPFRE AMÉRICA Significant decrease in the combined ratio, as a result of: – continued improvements both in the loss ratio and in the expense ratio, especially in Brazil Highlights – the sale of the MAPFRE ART and MAPFRE SALUD businesses (Ar
Slide 30: MAPFRE AMÉRICA: Highlights by countries
3 Business development International Insurance Division: MAPFRE AMÉRICA Highlights by VENEZUELA The growth in results reflects positive exchange rate differences due to the impact of the devaluation countries of the Venezuelan Bolivar (€15.0 million) and realised capital gains of €13.7 million, of
Slide 31: MAPFRE INTERNACIONAL: Premiums and results by countries
3 Business development International Insurance Division: MAPFRE INTERNACIONAL Premiums and results by countries PREMIUMS RESULTS (1) Local Local Currency Currency COUNTRY 9M 2012 9M 2013* % % 9M 2012 9M 2013* % % USA 1,172.4 1,199.0 2.3% 4.8% 107.9 89.1 -17.4% -15.3% TURKEY 279.1 411.8 47.5% 57.2% 2
Slide 32: MAPFRE INTERNACIONAL: Highlights of the Unit
3 Business development International Insurance Division: MAPFRE INTERNACIONAL Highlights of the Unit Transfer of the Portuguese businesses to the Spain & Portugal Insurance Division and integration of the operations of MAPFRE PUERTO RICO, which were previously included in MAPFRE AMÉRICA’s accounts
Slide 33: Global Businesses Division: Key highlights
3 Business development Global Businesses Division Key highlights 9M 2012 9M 2013 % % MAPFRE RE 2,666.7 17.1% Premiums & operating 3,825.6 4,337.8 13.4% income MAPFRE GLOBAL RISKS 845.6 -2.6% MAPFRE ASISTENCIA 825.5 21.3% Underwriting and financial 170.4 197.3 15.8% result % Other non-technical resul
Slide 34: MAPFRE RE: Key figures and highlights
3 Business development Global Businesses Division: MAPFRE RE Key figures Key highlights The development of Non-Life premiums reflects the 9M 2012 9M 2013 % growth of business with third parties and the Gross written and accepted formalisation of reinsurance operations with Group 2,277.0 2,666.7 17
Slide 35: MAPFRE GLOBAL RISKS: Key figures and highlights
3 Business development Global Businesses Division: MAPFRE GLOBAL RISKS Key figures Key highlights Reflects: 9M 2012 9M 2013 % – the transfer of the Credit insurance portfolio to Gross written and accepted SOLUNION, which is equity accounted 867.8 845.6 -2.6% premiums – the impact of the appreciati
Slide 36: MAPFRE ASISTENCIA: Key figures and highlights
3 Business development Global Businesses Division: MAPFRE ASISTENCIA Key figures Key highlights 9M 2012 9M 2013 % Organic growth in Asia and Europe In North America, positive impact of a Roadside Operating income 680.8 825.5 21.3% Assistance contract as well as of the acquisition of Century, bot
Slide 37: Appendix
1 Key highlights 2 Consolidated financial information 3 Business development 4 Appendix 5 Financial supplement 6 Schedule and contacts 37
Slide 38: Consolidated income statement
4 Appendix Consolidated income statement 9M 2012 9M 2013 % NON-LIFE INSURANCE AND REINSURANCE Gross written and accepted premiums 11,906.5 12,434.7 4.4% Premiums earned, net of ceded and retroceded reinsurance 9,875.4 9,930.5 0.6% Net claims incurred and variation in other technical provisions -6,59
Slide 39: Profit breakdown by units and companies
4 Appendix Profit breakdown by units and companies Contribution to consolidated result Net Minority 9M 2013 9M 2012 Result interests € Million % € Million % (1) SPAIN & PORTUGAL INSURANCE 341.7 341.7 345.2 MAPFRE VIDA 108.4 108.4 15.9% 89.5 13.6% MAPFRE FAMILIAR 160.4 160.4 23.5% 188.6 28.8% MAPFRE
Slide 40: Breakdown of recurring results by units and companies
4 Appendix Breakdown of recurring results by units and companies Contribution to Non-recurring Recurring attributable consolidated result results result 9M12 9M13 % 9M12 9M13 9M12 9M13 % (1) SPAIN AND PORTUGAL INSURANCE 345.2 341.7 -1.0% -74.6 0.0 419.8 341.7 -18.6% MAPFRE VIDA 89.5 108.4 21.1% -16.
Slide 41: Expense and loss ratios
4 Appendix Expense and loss ratios RATIOS (1) (2) (3) Expense ratio Loss ratio Combined ratio 9M 2012 9M 2013 9M 2012 9M 2013 9M 2012 9M 2013 MAPFRE S.A. consolidated 28.5% 28.3% 66.8% 67.0% 95.3% 95.3% (4) SPAIN & PORTUGAL INSURANCE 20.2% 20.0% 69.6% 71.6% 89.8% 91.6% MAPFRE FAMILIAR 19.8% 19.4% 71
Slide 42: Net financial income: selected information
4 Appendix Net financial income: selected information Breakdown of net financial income (before taxes) 9M 2012 9M 2013 % Net financial income, Non-life 455.0 487.2 7.1% - of which realised capital gains and impairments -137.3 79.8 --- - of which foreign exchange gains/(losses) 3.0 19.5 --- - of whic
Slide 43: Net financial income: selected information (contd.)
4 Appendix Net financial income: selected information (contd.) Realisation gains, impairments and other financial results Impairments from Other financial Impact on pre-tax Realisation gains (1) Bankia and Cattolica results result 9M 2012 9M 2013 9M 2012 9M 2013 9M 2012 9M 2013 9M 2012 9M 2013 MAPFR
Slide 44: Financial supplement
1 Key highlights 2 Consolidated financial information 3 Business development 4 Appendix 5 Financial supplement 6 Schedule and contacts 44
Slide 45: Operating companies: MAPFRE FAMILIAR
5 Financial supplement Operating companies: Key figures MAPFRE FAMILIAR 9M 2012 9M 2013* % Gross written and accepted premiums 2,955.2 2,901.9 -1.8% Net premiums earned 2,874.8 2,562.2 -10.9% Underwriting result 254.1 172.1 -32.3% Net financial income 30.1 81.8 171.8% Other business activities 6.9 2
Slide 46: MAPFRE FAMILIAR – Domestic business by insurance lines
5 Financial supplement Operating companies: Key figures MAPFRE FAMILIAR – Domestic business by insurance lines Motor 9M 2012 9M 2013 % Home 9M 2012 9M 2013 % Gross written and accepted premiums 1,693.6 1,543.5 -8.9% Gross written and accepted premiums 471.9 471.4 -0.1% Net premiums earned 1,732.8 1,
Slide 47: MAPFRE FAMILIAR (contd.) and MAPFRE EMPRESAS
5 Financial supplement Operating companies: Key figures MAPFRE FAMILIAR (contd.) MAPFRE EMPRESAS Other 9M 2012 9M 2013 % 9M 2012 9M 2013 % Gross written and accepted premiums 135.0 137.8 2.1% Gross written and accepted premiums 546.7 498.0 -8.9% Net premiums earned 188.3 124.7 -33.8% Net premiums ea
Slide 48: Operating companies: MAPFRE VIDA
5 Financial supplement Operating companies: Key figures MAPFRE VIDA 9M 2012 9M 2013 % Breakdown of premiums 9M 2012 9M 2013 % Technical Reserves excluding Regular Premiums 337.8 294.3 -12.9% shadow accounting 18,437.7 18,262.1 -1.0% - Agents' and other channels 198.3 173.5 -12.5% Shadow accounting a
Slide 49: MAPFRE VIDA: funds under management
5 Financial supplement Operating companies: Key figures MAPFRE VIDA Funds under management 9M 2012 9M 2013 % Change in funds under management(1) 9M 2012 9M 2013 Regular premiums insurance 4,528.2 4,713.3 4.1% (2) IFRS technical reserves 298.3 664.3 - Agents' channel and others 3,132.0 3,288.4 5.0% V
Slide 50: MAPFRE PORTUGAL
5 Financial supplement Operating companies: Key figures MAPFRE PORTUGAL MAPFRE PORTUGAL– by lines 9M 2012 9M 2013 % Non-Life 9M 2012 9M 2013 % Gross written and accepted premiums 71.5 66.0 -7.7% Gross written and accepted premiums 96.3 93.4 -3.0% Net premiums earned 63.3 53.2 -16.0% Net premiums ear
Slide 51: MAPFRE AMÉRICA (2013 operational structure)
5 Financial supplement Operating companies: Key figures MAPFRE AMÉRICA MAPFRE AMÉRICA – by lines (2013 operational structure) (2013 operational structure) 9M 2012* 9M 2013* % Non-Life 9M 2012* 9M 2013* % Gross written and accepted premiums 6,343.6 6,626.4 4.5% Gross written and accepted premiums 4,4
Slide 52: MAPFRE BRASIL
5 Financial supplement Operating companies: Key figures MAPFRE BRASIL MAPFRE BRASIL – by lines 9M 2012 9M 2013 % Non-Life 9M 2012 9M 2013 % Gross written and accepted premiums 2,123.2 2,529.4 19.1% Gross written and accepted premiums 3,577.1 3,791.6 6.0% (4) Like-for-like 2,372.6 2,529.4 6.6% Net pr
Slide 53: MAPFRE INTERNACIONAL (2013 operational structure)
5 Financial supplement Operating companies: Key figures MAPFRE INTERNACIONAL MAPFRE INTERNACIONAL – by lines (2013 operational structure) (2013 operational structure) 9M 2012* 9M 2013* % Non-Life 9M 2012* 9M 2013* % Gross written and accepted premiums 1,762.3 1,876.9 6.5% Gross written and accepted
Slide 54: MAPFRE USA
5 Financial supplement Operating companies: Key figures MAPFRE USA 9M 2012 9M 2013 % Gross written and accepted premiums 1,172.4 1,199.0 2.3% Net premiums earned 1,055.2 1,021.1 -3.2% Underwriting result 15.3 -10.7 --- Net financial income 94.4 100.7 6.7% Other business activities 0.0 0.0 --- Other
Slide 55: MAPFRE RE
5 Financial supplement Operating companies: Key figures MAPFRE RE MAPFRE RE – by lines 9M 2012 9M 2013 % Non-Life 9M 2012 9M 2013 % Gross written and accepted premiums 2,277.0 2,666.7 17.1% Gross written and accepted premiums 1,908.3 2,316.5 21.4% Net premiums earned 1,464.0 1,701.6 16.2% Net premiu
Slide 56: MAPFRE GLOBAL RISKS and MAPFRE ASISTENCIA
5 Financial supplement Operating companies: Key figures MAPFRE GLOBAL RISKS MAPFRE ASISTENCIA 9M 2012 9M 2013 % 9M 2012 9M 2013 % Gross written and accepted premiums 867.8 845.6 -2.6% Operating income 680.8 825.5 21.3% - Global Risks 791.0 797.4 0.8% - Gross written and accepted premiums 553.7 689.4
Slide 57: Schedule and contacts
1 Key highlights 2 Consolidated financial information 3 Business development 4 Appendix 5 Financial supplement 6 Schedule and contacts 57
Slide 58: 2013 Provisional Schedule
6 Schedule and contacts 2013 Provisional Schedule Release Third Quarter 2013 Results 30-Oct-13 Madrid Conference Call – Third Quarter 2013 Results 31-Oct-13 London Presentation to analysts – Third Quarter 2013 Results 58
Slide 59: Investor Relations Department
6 Schedule and contacts Investor Relations Department Luigi Lubelli Deputy General Manager – Finance +34-91-581-6071 Jesús Amadori Carrillo Head of Investor Relations +34-91-581-2086 Alberto Fernández-Sanguino Investor Relations +34-91-581-2255 Natalia Núñez Arana Investor Relations +34-91-581-8664
Slide 60: 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