Slide 1: Nine months 2009 results
Nine months 2009 results Presentation for investors and analysts 26th October 2009 Nº 2009 - 21
Slide 2: Agenda
Key highlights Consolidated financial information Business development Appendix Financial supplement Contacts 2 Nº 2009 - 21
Slide 3: Summary
Summary Performance in the third quarter of the year reflects a professional management in a very complex environment Revenues 14,354.9 +9.9% Premiums 11,901.7 +11.6% Funds under management 24,003.5 +2.5% Non-life combined ratio 95.1% +2.1p.p. Million Euros which resulted in … A net result of €743.4
Slide 4: Highlights of the third quarter results
Highlights of the third quarter results The international business, reinsurance and Life Assurance in Spain drive the Group’s growth The international business (including reinsurance) already contributes 50% of premiums and 32% of results The combined ratio remains very good, despite intense pressur
Slide 5: Growth of ordinary results
Growth of ordinary results Attributable result Earnings per share(1) Recurrent Extraordinary items Recurrent Extraordinary items & Investment losses & Investment losses Reorganisation of the alliance with CAJA 26.30 +3.9% 26.73 26.46 MADRID 743.4 0.64 -0.6% 0.57 1.33 MAPFRE INMUEBLES 715.6 provision
Slide 6: The adjusted attributable result reflects the performance of the underlying business
The adjusted attributable result reflects the performance of the underlying business 9M08 9M09 REPORTED ATTRIBUTABLE RESULT 715.6 743.4 +3.9% Results from the reorganisation of the Partial buyback of -83.2 -37.7 structure of the alliance with CAJA MADRID subordinated debt Losses from Fannie Mae, Fre
Slide 7: MAPFRE continues reducing its debt level
MAPFRE continues reducing its debt level Change since: 30.6.08 31.12.08 30.9.09 Dec-08 Jun-08 Bridge loan -12/2009 1,000.0 1,002.0 450.0 -552.0 -550.0 Senior debt MAPFRE S.A. - 07/2011 295.8 286.8 281.5 -5.3 -14.3 Senior debt COMMERCE - 12/2013 189.6 176.4 147.7 -28.7 -41.9 Syndicated credit facilit
Slide 8: Memorandum of Understanding with BANCO DO BRASIL
Memorandum of Understanding with BANCO DO BRASIL MAPFRE and BANCO DO BRASIL have signed a memorandum of understanding to negotiate the establishment of a strategic alliance to develop their Personal, Property and Motor insurance businesses This agreement will lead to the creation of one of the leadi
Slide 9: Memorandum of Understanding with BANCO DO BRASIL (contd.)
Memorandum of Understanding with BANCO DO BRASIL (contd.) Pro-forma competitive position(1) August 2009 Ranking Market share Motor #2 15.1% Non-Life (non- #2 13.9% motor) Life - Protection #1 22.7% 1) Subject to the implementation of the Memorandum of Understanding signed in October 2009 Key highlig
Slide 10: Total dividend grows more than 7%
Total dividend grows more than 7% Interim dividend for 2009 Evolution of total dividends paid(1) The Board of Directors has agreed to pay a gross interim dividend against the 2009 CAGR +24.6% 0.150 results of €0.07 per share 0.140 The total gross dividend paid during the year amounts to €0.15 per sh
Slide 11: Scrip dividend plan
Scrip dividend plan MAPFRE’s Board of Directors has approved to again offer shareholders the possibility to reinvest the interim dividend in newly issued shares of the company, according to the following terms: Shareholders will receive their dividends in cash and may choose to participate in the sc
Slide 12: Key figures
Key figures 9M 2009 9M 2008 % 09/08 Results Gross written and accepted premiums 11,901.7 10,668.1 11.6% - Non-life 9,224.6 8,354.9 10.4% - Life 2,677.1 2,313.2 15.7% Net result, group share 743.4 715.6 3.9% Earnings per share (Euro cents) 26.30 26.46 -0.6% Balance sheet Total assets 43,601.4 42,308.
Slide 13: Agenda
Key highlights Consolidated financial information Business development Appendix Financial supplement Contacts 13 Nº 2009 - 21
Slide 14: The international and reinsurance businesses contribute 50% of premiums and 32% of results
The international and reinsurance businesses contribute 50% of premiums and 32% of results… Premiums(1) Contribution to consolidated results (%) Non-Life Reinsurance (Spain) 12.4% 35.6% Segment % Non Life Spain 54.9 Life Non Life (Abroad) Non Life Abroad 17.2 72.1 5.7% Life Spain 13.3 Life Life Abro
Slide 15: Driving the Group's growth, together with Life Assurance in Spain
… driving the Group’s growth, together with Life Assurance in Spain Change in premiums Premiums € million € Mn. % Var. INTERNATIONAL OP. UNIT 561.8 1,285.1 +77.7% MAPFRE AMERICA 506.1 3,147.0 +19.2% MAPFRE RE 197.7 1,553.0 +14.6% LIFE ASSURANCE OP. UNIT 160.5 1,822.9 +9.7% MAPFRE ASISTENCIA(1) 38.9
Slide 16: Breakdown of premiums by distribution channel in Spain
Breakdown of premiums by distribution channel in Spain Agents and other channels(1) Bank channel(1) 4,300.7 5,301.2 153.8 976.2 822.4 1,000.5 +9.4% -3.9% -1.6% +10.0% -10.4% +6.2% LIFE NON-LIFE TOTAL LIFE NON-LIFE TOTAL 1) Gross written and accepted premiums Million Euros Consolidated financial info
Slide 17: Excellent combined ratios in the current economic context
Excellent combined ratios in the current economic context Change in Non-life underwriting result Non-life combined ratio (%) € million 9M09 9M08 MAPFRE RE 16.0 93.1 94.4 MAPFRE ASISTENCIA 4.0 92.6 93.8 -14.2 INTERNATIONAL OP. UNIT 98.8 95.2 -21.0 MAPFRE AMERICA 103.4 102.7 -36.8 MAPFRE EMPRESAS(1) 9
Slide 18: Development of Non-life insurance results
Development of Non-life insurance results Non-life Account Key points Premiums growth reflects: 9M 2009 9M 2008 % 09/08 – the growth in Latin America, in the reinsurance Gross written and accepted business and in the Homeowner and Health 9,224.6 8,354.9 10.4% premiums insurance lines in Spain Underw
Slide 19: Development of Life Assurance results
Development of Life Assurance results Life Account Key points Premiums development reflects: 9M 2009 9M 2008 % 09/08 – an increase in sales of Savings products through Gross written and accepted the agents’ channel 2,677.1 2,313.2 15.7% premiums – the winning of a comparatively lower volume of Life
Slide 20: Development of results from Other Business Activities
Development of results from Other Business Activities Other Business Activities(1) Key points Contraction of revenues and results in non- 9M 2009 9M 2008 % 09/08 insurance subsidiaries as a result of the economic crisis Operating revenues 409.6 429.7 -4.7% Increase in net financial revenues, which r
Slide 21: Net results
Net results Change in net results Net results € million € Mn. % Var. INTERNATIONAL OP. UNIT 74.0 86.8 +580.9% MAPFRE AMERICA 10.9 85.5 +14.6% MAPFRE RE 6.2 83.3 +8.0% MAPFRE ASISTENCIA 1.1 10.5 +11.7% -23.3 MAPFRE EMPRESAS(1) 62.6 -27.1% -23.3 LIFE ASSURANCE OP. UNIT(2) 99.0 -19.1% 345.5 -10.4% -40.
Slide 22: Results
Results 9M 2009 9M 2008 % 09/08 Result before tax and minority interests 1,157.9 1,088.7 6.4% Taxes -334.4 -307.2 8.9% Result after tax 823.5 781.5 5.4% Result after tax from discontinued operations -1.1 -0.9 22.2% Result for the year 822.4 780.6 5.4% Result attributable to minority shareholders -79
Slide 23: Strengthened financial position
Strengthened financial position Balance Sheet Key points 30.9.09 31.12.08 30.9.08 Increase in the investments and real estate figure, partly due to the rise in the market Goodwill 1,610.8 1,601.3 1,654.1 value of securities held in the investment Fixed assets 456.9 373.7 386.0 portfolio Cash & equiv
Slide 24: MAPFRE's equity has increased by €1,091.7 million during the first nine months of 2009
MAPFRE’s equity has increased by €1,091.7 million during the first nine months of 2009 Statement of changes in equity Key points 9M 2009 9M 2008 Equity shows an increase of €1,091.7 million BALANCE AS AT PRIOR YEAR END 5,716.4 5,614.4 since 31.12.2008, which reflects: Additions and deductions accoun
Slide 25: Agenda
Key highlights Consolidated financial information Business development Appendix Financial supplement Contacts 25 Nº 2009 - 21
Slide 26: MAPFRE FAMILIAR – key figures
MAPFRE FAMILIAR – key figures Business activity indicators Profitability indicators +1.5p.p. -4.2% 3,365.5 3,225.8 88.4% 89.9% Gross written +0.1p.p. and accepted 18.0% premiums 17.9% Combined +1.4p.p. Ratio 9M 2008 9M 2009 70.5% 71.9% -14.5% 356.4 304.6 Underwriting result 9M 2008 9M 2009 Loss rati
Slide 27: MAPFRE FAMILIAR - information by business line
MAPFRE FAMILIAR - information by business line Premiums evolution Combined ratio 89.0% +2.1p.p. 91.1% -9.2% 14.3% 14.1% 1,940.6 1,761.6 74.7% 77.0% Motor Motor 9M 2008 9M 2009 9M 2008 9M 2009 83.2% +0.2p.p. 83.4% +0.1% 26.1% 26.1% 636.0 636.6 Property Property 57.1% 57.3% 9M 2008 9M 2009 9M 2008 9M
Slide 28: MAPFRE FAMILIAR: Key highlights
MAPFRE FAMILIAR: Key highlights The 4.2% decrease in premiums reflects: – a 9.2% decline in Motor insurance, which again was more moderate than in the first Premiums months of the year, thanks to sales and loyalty initiatives, the launch of new products designed for specific segments of the customer
Slide 29: MAPFRE EMPRESAS – key figures
MAPFRE EMPRESAS – key figures Business activity indicators Profitability indicators -4.0% +6.8p.p. 1,279.6 1,228.7 93.8% 119.3 98.7 87.0% +6.7p.p. Gross written 510.6 590.2 25.9% C&S 19.2% and accepted G. Risks +0.1p.p. premiums 649.7 Industrial 539.8 Combined Ratio 9M 2008 9M 2009 67.8% 67.9% -51.8
Slide 30: MAPFRE EMPRESAS – information by business line
MAPFRE EMPRESAS – information by business line Premiums growth Combined ratio -16.9% +8.7p.p. 91.9% 649.7 83.2% 539.8 20.8% 27.3% MAPFRE MAPFRE SEGUROS DE SEGUROS DE EMPRESAS EMPRESAS 62.4% 64.6% 9M 2008 9M 2009 9M 2008 9M 2009 Company that will manage the Industrial Risks line -1.2p.p. +9.4% 688.9
Slide 31: MAPFRE EMPRESAS: Key highlights
MAPFRE EMPRESAS: Key highlights Reflects the favourable performance of the Global Risks business, the Growth in contraction in the Industrial Risks line, due to the slowdown in economic premiums activity in Spain, and in the Credit line, as a result of the non-renewal of loss- making portfolios Rema
Slide 32: Non-life business in Spain: Key operating figures
Non-life business in Spain: Key operating figures Net Expense ratio(1) Combined ratio(1) Revenues % Var. result % Var. 9M 2009 9M 2008 9M 2009 9M 2008 MAPFRE FAMILIAR(2) 3,722.3 -3.9% 345.5 -10.4% 18.0% 17.9% 89.9% 88.4% MAPFRE EMPRESAS(2) 1,363.8 -2.9% 62.6 (3) -27.1% 25.9% 19.2% 93.8% 87.0% NON LI
Slide 33: Life Assurance Operating Unit – key figures
Life Assurance Operating Unit – key figures Business activity indicators Profitability indicators +9.7% 1,822.9 Gross written 1,662.4 and accepted +0.09p.p. premiums 1.03% 0.94% Expense ratio(1) 9M 2008 9M 2009 -2.2% Underwriting 147.5 144.3 and financial 32.6 9M 2008 9M 2009 result +25.6% 114.9 9M
Slide 34: Life Assurance Operating Unit: Key highlights
Life Assurance Operating Unit: Key highlights The evolution of premiums reflects: – a larger issuance of unit-linked insurance and PPAs (Assured Pension Plans) through the agents channel – a comparatively lower volume in Life – Savings products through the bancassurance channel – the good performanc
Slide 35: Life Assurance Operating Unit: Breakdown of premiums
Life Assurance Operating Unit: Breakdown of premiums(1) 9M 2009 9M 2008 % 09/08 By type of premium Regular Premiums 313.8 289.4 8.4% - Agents and other channels 219.1 231.4 -5.3% Life - Protection Life - Savings - Bank channel - CAJA MADRID 29.1 16.7 74.6% 15.6% 84.4% - Bank channel - Other(2) 65.6
Slide 36: Life Assurance Operating Unit: Breakdown of funds under management
Life Assurance Operating Unit: Breakdown of funds under management(1) 9M 2009 9M 2008 % 09/08 Regular premiums insurance 4,399.8 4,409.1 -0.2% By type of business - Agents channel and others 3,693.4 3,691.3 0.1% - Bank channel - CAJA MADRID 277.2 331.2 -16.3% Pension funds Regular premiums - Bank ch
Slide 37: Life Assurance Operating Unit: Change in funds under management
Life Assurance Operating Unit: Change in funds under management(1) 9M 2009 9M 2008 IFRS technical reserves (2) 228.3 -567.6 > Variation excluding shadow accounting -89.0 -261.0 - Agents channel and others 83.5 137.7 - Bank channel - CAJA MADRID -205.7 -297.5 - Bank channel - Other(3) 33.2 -101.2 Pen
Slide 38: MAPFRE AMERICA – key figures
MAPFRE AMERICA – key figures Business activity indicators Profitability indicators +0.7p.p. +19.2% 3,147.0 102.7% 103.4% 2,640.9 -1.3p.p. Gross written 34.1% 32.8% and accepted Non-Life 2,458.7 premiums 2,095.8 Life +2.0p.p. Combined 545.1 688.3 Ratio 9M 2008 9M 2009 68.6% 70.6% Underwriting 156.3 a
Slide 39: MAPFRE AMERICA - Key highlights
MAPFRE AMERICA - Key highlights The strong premiums growth reflects: Growth in – the excellent business performance in Brazil, Colombia and Venezuela, especially in premiums the Health, Accident and Life Assurance lines – the strength of the regional network and the new distribution channels, which
Slide 40: MAPFRE AMERICA: Premiums and results by country
MAPFRE AMERICA: Premiums and results by country PREMIUMS RESULTS (1) Local Local Currency Currency COUNTRY 9M 2009 9M 2008 % 09/08 % 09/08 9M 2009 9M 2008 % 09/08 % 09/08 BRAZIL(2) 1,197.6 1,055.2 13.5% 24.2% 89.3 80.0 11.6% 22.2% VENEZUELA 564.0 315.1 79.0% 60.6% 29.8 19.2 55.2% 39.4% MEXICO 299.9
Slide 41: International Operating Unit – key figures
International Operating Unit(1) – key figures Business activity indicators Profitability indicators 95.2% 98.8% 1,285.1 Gross written 723.3 27.0% and accepted 25.4% 22.7% 26.3% premiums Non-life Ratio Combined combinado 9M 2008 9M 2009 Ratio No Vida 69.8% 73.9% 71.8% 72.3% Underwriting and financial
Slide 42: International Operating Unit: key highlights
International Operating Unit: key highlights New subsidiaries The variation in the results of the Unit mainly reflects the integration of THE COMMERCE GROUP Highlights: – an increase in premiums (in US Dollars) in the third quarter compared to the same period of the previous year, as a result of the
Slide 43: International Operating Unit: Premiums and results by country
International Operating Unit: Premiums and results by country PREMIUMS RESULTS (1) Local Local currency currency COUNTRY 9M 2009 9M 2008 % 09/08 % 09/08 9M 2009 9M 2008 % 09/08 % 09/08 USA(2) 994.4 411.9 --- --- 98.4 -11.9 --- --- TURKEY 163.3 181.9 -10.2% 3.3% 25.7 41.8 -38.5% -29.2% PORTUGAL 108.6
Slide 44: MAPFRE RE – key figures
MAPFRE RE – key figures Business activity indicators Profitability indicators +14.6% -1.3p.p. 1,553.0 94.4% 93.1% 1,355.3 +0.9p.p. -1.2pp Gross written 95.9 Life 136.1 and accepted 29.2% 30.1% Non-life 1,416.9 premiums 1,259.4 Non-life Ratio -2.2p.p. +5.1p.p Combined combinado 9M 2008 9M 2009 Ratio
Slide 45: MAPFRE RE: Key highlights
MAPFRE RE: Key highlights Growth continues reflecting the winning of new business and quota increases in Growth in existing contracts, as well as larger cessions from the Group’s international premiums subsidiaries The loss ratio reflects both the good performance of the non-catastrophic loss experi
Slide 46: Agenda
Key highlights Consolidated financial information Business development Appendix Financial supplement Contacts 46 Nº 2009 - 21
Slide 47: Key quarterly consolidated figures
Key quarterly consolidated figures 3Q 2007 4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009 Non-life gross written and accepted premiums 2.057,4 2.233,7 3.137,1 2.556,5 2.661,3 2.535,9 3.656,5 2.792,5 2.775,6 Life gross written and accepted premiums 933,4 709,1 915,3 728,5 669,4 1.100
Slide 48: Reconciliation of earnings per share
Reconciliation of earnings per share(1) Earnings per share 3Q 07 4Q 07 1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 As reported Quarterly EPS 7.43 9.90 10.67 9.06 6.93 8.72 10.46 8.52 7.40 Adjusted (Factor) 0.9924 0.9924 0.9924 0.9924 0.9924 0.9924 0.9924 (*) (*) Quarterly EPS - adjusted 7.37 9.82 10.5
Slide 49: Consolidated income statement
Consolidated income statement 9M 2009 9M 2008 % 09/08 NON-LIFE INSURANCE AND REINSURANCE Gross written and accepted premiums 9,224.6 8,354.9 10.4% Premiums earned, net of ceded and retroceded reinsurance 7,606.4 6,669.9 14.0% Net claims incurred and variation in other technical provisions -5,332.8 -
Slide 50: Profit breakdown by units and companies
Profit breakdown by units and companies Contribution Contribution to consolidated to consolidated result result Net Minority 9M 2009 9M 2008 Result interests € Million % € Million % INSURANCE ACTIVITIES LIFE ASSURANCE OPERATING UNIT(1) 99,0 99,0 13,3% 119,6 16,7% MAPFRE FAMILIAR(2) 345,5 345,5 46,5%
Slide 51: Expense and loss ratios
Expense and loss ratios RATIOS (1) EXPENSE RATIO LOSS RATIO(2) COMBINED RATIO(3) COMPANY 9M 2009 9M 2008 9M 2009 9M 2008 9M 2009 9M 2008 MAPFRE S.A. consolidated 25.0% 23.9% 70.1% 69.1% 95.1% 93.0% Companies operating primarily in Spain MAPFRE FAMILIAR(4) 18.0% 17.9% 71.9% 70.5% 89.9% 88.4% (5) MAPF
Slide 52: Breakdown of equity by units and companies
Breakdown of equity by units and companies Total equity 9M 2009 9M 2008 Stake Stake % Var. Controlling Controlling Controlling Minorities Minorities Minorities shareholder shareholder shareholder MAPFRE FAMILIAR 1,371.7 --- 1,363.8 --- --- --- LIFE ASSURANCE OP. UNIT 880.8 --- 830.6 --- 6.0% --- MAP
Slide 53: Agenda
Key highlights Consolidated financial information Business development Appendix Financial supplement Contacts 53 Nº 2009 - 21
Slide 54: Operating Companies and Units Key figures
Operating Companies and Units Key figures MAPFRE FAMILIAR (1) MAPFRE FAMILIAR – by lines MAPFRE FAMILIAR - Motor 9M 2009 9M 2008 % 09/08 9M 2009 9M 2008 % 09/08 Gross written and accepted premiums 1,761.6 1,940.6 -9.2% Gross written and accepted premiums 3,225.8 3,365.5 -4.2% Net premiums earned 1,8
Slide 55: Operating Companies and Units Key figures
Operating Companies and Units Key figures MAPFRE EMPRESAS(1) MAPFRE EMPRESAS – by lines 9M 2009 9M 2008 % 09/08 MAPFRE SEGUROS DE EMPRESAS 9M 2009 9M 2008 % 09/08 Gross written and accepted premiums 1,228.7 1,279.6 -4.0% - Industrial business 539.8 649.7 -16.9% Gross written and accepted premiums 53
Slide 56: Operating Companies and Units Key figures
Operating Companies and Units Key figures LIFE ASSURANCE OP. UNIT MAPFRE AMERICA 9M 2009 9M 2008 % 09/08 9M 2009 9M 2008 % 09/08 Technical Reserves excluding shadow accounting 15,409.5 15,431.4 -0.1% Gross written and accepted premiums 3,147.0 2,640.9 19.2% Shadow accounting adjustments 744.4 150.4
Slide 57: Operating Companies and Units Key figures
Operating Companies and Units Key figures INTERNATIONAL OP. UNIT(1) MAPFRE GENEL SIGORTA 9M 2009 9M 2008 % 09/08 9M 2009 9M 2008 % 09/08 Gross written and accepted premiums 1,285.1 723.3 77.7% Gross written and accepted premiums 163.3 181.9 -10.2% Net premiums earned 1,119.6 608.6 84.0% - Life 4.1 6
Slide 58: Operating Companies and Units Key figures
Operating Companies and Units Key figures THE COMMERCE GROUP(1) MAPFRE RE 9M 2009 9M 2008 % 09/08 9M 2009 9M 2008 % 09/08 Gross written and accepted premiums 994.4 940.1 5.8% Gross written and accepted premiums 1,553.0 1,355.3 14.6% Net premiums earned 906.3 855.5 5.9% - of which Life premiums 136.1
Slide 59: Operating Companies and Units Key figures
Operating Companies and Units Key figures BANCO DE SERVICIOS FINANCIEROS MAPFRE INMUEBLES CAJA MADRID-MAPFRE (Affiliate company) 9M 2009 9M 2008 % 09/08 9M 2009 9M 2008 % 09/08 Net interest income 113.5 93.1 21.9% Operating revenues 28.1 48.4 -41.9% Operating revenues EBIT 1.6 -10.9 --- 115.7 93.0 2
Slide 60: Operating Companies and Units Key figures
Operating Companies and Units Key figures MAPFRE ASISTENCIA MAPFRE QUAVITAE (1) 9M 2009 9M 2008 % 09/08 9M 2009 9M 2008 % 09/08 Operating income 370.0 331.1 11.7% Operating revenues 102.8 89.2 15.2% - Gross written and accepted premiums 262.3 237.8 10.3% EBIT 1.8 0.7 157.1% - Other income 107.7 93.3
Slide 61: Agenda
Key highlights Consolidated financial information Business development Appendix Financial supplement Contacts 61 Nº 2009 - 21
Slide 62: Investor Relations Department
Investor Relations Department Luigi Lubelli Finance Director +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 Antonio Triguero Sánchez Investor Relati
Slide 63: 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