Slide 1: First quarter results 2011
First quarter results 2011 Presentation for investors and analysts MJEORAR FOTO 4th May 2011 Nº 2011 - 2
Slide 2: Key highlights
Key highlights Consolidated financial information Business development Appendix Financial supplement Schedule and contacts 2 Nº 2011 - 2
Slide 3: Quarterly summary
Quarterly summary The results for the first quarter of the year reflect the strength of MAPFRE’s insurance model, both in Spain and abroad Revenues 6,129.4 +4.0% Premiums 5,119.1 +3.7% Managed savings 27,887.2 +12.0% Non-life combined ratio 96.6% -0.9p.p. Million Euros This translates into … A net r
Slide 4: Highlights of the results
Highlights of the results Non-Life: sustained growth of the international business and an increase in market shares in Motor and Home insurance in Spain Life: lower issuance in Spain as a result of the different schedules for sales campaigns in the bancassurance channel, partly offset by business gr
Slide 5: Development of results
Development of results Attributable result Earnings per share 310.1 10.29 273.1 9.34 3M 2010 3M 2011 3M 2010 3M 2011 Million Euros Euro cents Key highlights 5 Nº 2011 - 2
Slide 6: Growing focus on the insurance business: agreement with CAJA MADRID CIBELES
Growing focus on the insurance business: agreement with CAJA MADRID CIBELES MAPFRE and CAJA MADRID CIBELES have reached an agreement by virtue of which the savings bank will acquire the 48.97% stake that MAPFRE holds in BANCO DE SERVICIOS FINANCIEROS CAJA MADRID-MAPFRE, and MAPFRE will acquire the 1
Slide 7: MAPFRE will offer a scrip dividend plan to finance the agreement with CAJA MADRID CIBELES
MAPFRE will offer a scrip dividend plan to finance the agreement with CAJA MADRID CIBELES Scrip Dividend Plan In order to finance the acquisition of the 12.5% stake in MAPFRE INTERNACIONAL, MAPFRE’s Board of Directors has agreed to give its shareholders the possibility to reinvest the next final div
Slide 8: The agreement with BANCO DO BRASIL
The agreement with BANCO DO BRASIL In the first quarter of the year, the Brazilian supervisory authorities have granted the approval for the establishment of the joint venture with BANCO DO BRASIL Pursuant to the IFRS provisions, this authorisation has resulted in the recognition of a gain correspon
Slide 9: The underlying result continues to grow
The underlying result continues to grow 3M 2010 3M 2011 Result from insurance operations 304.1 357.7 +17.6% Impact of Chile's earthquake 80.8 -- Impact of earthquakes in Japan and New Zealand -- 64.1 Adjusted result from insurance operations 384.9 421.8 +9.6% Result from non insurance operations -15
Slide 10: Key figures
Key figures 3M 2011 3M 2010 % 11/10 Results Gross written and accepted premiums 5,119.1 4,935.3 3.7% - Non-life 3,937.4 3,632.6 8.4% - Life 1,181.7 1,302.7 -9.3% Net result, group share 310.1 273.1 13.5% Reported earnings per share (Euro cents) 10.29 9.34 10.2% Balance sheet Total assets 49,102.9 45
Slide 11: Consolidated financial information
Key highlights Consolidated financial information Business development Appendix Financial supplement Schedule and contacts 11 Nº 2011 - 2
Slide 12: Breakdown of premiums and results by line of business and geographical areas
Breakdown of premiums and results by line of business and geographical areas Premiums(1) Contribution to consolidated results Spain 45.8% Abroad 54.2% Segment EUR MM % Non-Life (Spain) Reinsurance Non Life Spain 165.2 46.2% 31.1% 12.1% Non Life Abroad 39.9 11.2% Life Life Spain 39.5 11.0% (Abroad) L
Slide 13: Business growth in Spain and abroad
Business growth in Spain and abroad Interannual change in premiums Premiums € million % Var. € Mn. MAPFRE AMÉRICA 238.7 1,383.1 +20.9% MAPFRE ASISTENCIA(1) 43.7 186.0 +30.7% MAPFRE RE 41.2 656.4 +6.7% MAPFRE INTERNACIONAL 32.7 489.9 +7.1% MAPFRE GLOBAL RISKS 12.4 263.7 +4.9% MAPFRE FAMILIAR -4.6 1,4
Slide 14: Breakdown of premiums by distribution channel in Spain
Breakdown of premiums by distribution channel in Spain Agents and other channels(1) Bank channel(1) 1,605.4 1,954.2 (2) 77.9 526.1 448.2 348.8 -0.3% -1.5% -1.2% -24.4% +11.6% -20.6% Y-o-y change LIFE NON-LIFE TOTAL LIFE NON-LIFE TOTAL 1) Gross written and accepted premiums Million Euros 2) The insur
Slide 15: Very favourable development of technical results
Very favourable development of technical results Interannual change in Non-life underwriting result Non-Life combined ratio (%) € million 3M11 3M 10 MAPFRE GLOBAL RISKS 32.0 85.2 141.7 28.2 MAPFRE FAMILIAR 88.6 91.1 16.6 MAPFRE EMPRESAS 77.0 89.8 MAPFRE ASISTENCIA 4.2 91.7 94.1 MAPFRE AMÉRICA 3.7 10
Slide 16: Development of Non-life insurance results
Development of Non-life insurance results Non-life Account Key points 3M 2011 3M 2010 % 11/10 The sustained growth in premiums reflects: Gross written and – the development of the international and reinsurance 3,937.4 3,632.6 8.4% businesses accepted premiums – the difficult economic environment in
Slide 17: Development of Life Assurance results
Development of Life Assurance results Life Account Key points 3M 2011 3M 2010 % 11/10 The premiums development mainly reflects: – different schedules for sales campaigns in Spain, which Gross written and accepted in 2010 were implemented principally in the first 1,181.7 1,302.7 -9.3% quarter premium
Slide 18: Development of results from Other Business Activities
Development of results from Other Business Activities Other Business Activities(1) Key points 3M 2011 3M 2010 % 11/10 Operating revenues and expenses: sharp decline due to the reclassification of MAPFRE QUAVITAE’s assistance business as a discontinued operation and Operating revenues 108.3 152.9 -29
Slide 19: Net results
Net results Interannual change in net results Net results € million € Mn. % Var. 112.6 149.2 +307.7% MAPFRE AMÉRICA 8.9 6.7 --- MAPFRE GLOBAL RISKS 5.5 35.6 +18.1% MAPFRE EMPRESAS 1.3 4.8 +38.8% MAPFRE ASISTENCIA MAPFRE VIDA 0.2 39.5 +0.6% MAPFRE RE -13.6 7.4 -64.8% MAPFRE INTERNACIONAL -21.0 2.4 -8
Slide 20: Results
Results 3M 2011 3M 2010 % 11/10 Result before tax and minority interests 506.6 421.1 20.3% Taxes -155.5 -116.4 33.6% Result after tax 351.1 304.7 15.2% Result after tax from discontinued operations -1.6 -0.2 --- Result for the year 349.5 304.5 14.8% Result attributable to minority shareholders -39.4
Slide 21: Growth in assets
Growth in assets Balance Sheet Key points Depreciation of the US Dollar and most of the Latin 31.3.11 31.12.10 31.3.10 American currencies Goodwill 2,203.1 2,258.4 1,706.4 Fixed assets 383.8 399.3 435.1 Decrease in cash balances, reflecting mainly their partial reinvestment in longer dated assets Ca
Slide 22: MAPFRE will distribute €241 million to its shareholders
MAPFRE will distribute €241 million to its shareholders Statement of changes in equity Key points 3M 2011 3M 2010 Equity decreased by €110.2 million since BALANCE AS AT PRIOR YEAR END 7,795.8 7,093.8 31.12.2010, reflecting: Additions and deductions accounted for directly in – the negative impact of
Slide 23: Business development
Key highlights Consolidated financial information Business development Appendix Financial supplement Schedule and contacts 23 Nº 2011 - 2
Slide 24: MAPFRE FAMILIAR – key figures
MAPFRE FAMILIAR – key figures Business activity indicators Profitability indicators -2.5p.p. -0.3% 1,474.9 1,470.3 91.1% Gross written 88.6% and accepted premiums 16.5% +3.2p.p. 19.7% Combined 3M 2010 3M 2011 Ratio +31.8% 116.9 88.7 74.6% -5.7p.p. 68.9% Underwriting result 3M 2010 3M 2011 3M 2010 3M
Slide 25: MAPFRE FAMILIAR - information by business line
MAPFRE FAMILIAR - information by business line Premiums evolution Combined ratio +0.2% 92.6% +5.0p.p. 97.6% 582,8 584,1 13.1% 16.6% 79.5% 81.0% Motor Motor 3M 2010 3M 2011 3M 2010 3M 2011 88.3% -11.1p.p. 77.2% 24.6% 223.2 -1.0% 221.0 25.9% 63.7% Property Property 51.3% 3M 2010 3M 2011 3M 2010 3M 201
Slide 26: MAPFRE FAMILIAR: Key highlights
MAPFRE FAMILIAR: Key highlights The 0.3% decrease in premiums reflects: – a 0.2% increase in Motor insurance, versus a 2.2% contraction in the sector. At the end of the period, MAPFRE insured 5,873,603 vehicles in Spain (5,856,075 as at 31.12.2010), equivalent to a net increase of 17,528 units in th
Slide 27: MAPFRE EMPRESAS – key figures
MAPFRE EMPRESAS – key figures Business activity indicators Profitability indicators -12.8p.p. -4.9% 224.0 213.0 89.8% Gross written 77.0% and accepted 26.0% -0.4 p.p. premiums 25.6% Combined Ratio 3M 2010 3M 2011 -12.4 p.p. +115.5% 63.8% 30.9 51.4% Underwriting 14.3 result 3M 2010 3M 2011 3M 2010 3M
Slide 28: MAPFRE EMPRESAS: Key highlights
MAPFRE EMPRESAS: Key highlights The decrease reflects a contraction in the TPL and Engineering lines due to the low Premiums level of activity in the construction sector, partly offset by the transfer of the development Trade Disruption insurance portfolio from MAPFRE FAMILIAR(1) undertaken in the y
Slide 29: Non-life business in Spain: Key operating figures
Non-life business in Spain: Key operating figures (1) (1) Net Expense ratio Combined ratio Revenues % Var. result % Var. 3M 2011 3M 2010 3M 2011 3M 2010 MAPFRE FAMILIAR 1,634.1 -5.3% 129.6 -19.6% 19.7% 16.5% 88.6% 91.1% MAPFRE EMPRESAS 247.9 -7.5% 35.6 18.1% 25.6% 26.0% 77.0% 89.8% NON LIFE BUSINESS
Slide 30: MAPFRE VIDA – key figures
MAPFRE VIDA – key figures Business activity indicators Profitability indicators -15.4% 942.4 Gross written 797.0 -0.1 p.p. and accepted premiums 1.09% 0.99% 3M 2010 3M 2011 Expense ratio(1) +11.8% 58.3 65.2 Underwriting and financial result 3M 2010 3M 2011 3M 2010 3M 2011 +1.3 p.p. +9.2% 15.9% 72.5
Slide 31: MAPFRE VIDA: Key highlights
MAPFRE VIDA: Key highlights The variation in revenues reflects: – a comparatively lower premiums volume due to the differences in the schedule of sales campaigns in the bancassurance channel – the consolidation of the insurance operations of CATALUNYACAIXA(1) Development of The growth of the net res
Slide 32: MAPFRE VIDA: Breakdown of premiums
MAPFRE VIDA: Breakdown of premiums 3M 2011 3M 2010 % 11/10 By type of premium Regular Premiums 174.2 123.9 40.6% - Agents and other channels 89.6 79.1 13.2% Life - Protection Life - Savings - Bank channel - CAJA MADRID 8.3 20.0 -58.6% 18.1% 81.9% - Bank channel - CATALUNYACAIXA 28.5 -- -- (1) - Bank
Slide 33: MAPFRE VIDA: funds under management
MAPFRE VIDA: funds under management Breakdown of funds under management Change in funds under management(1) 3M 2011 3M 2010 % 11/10 3M 2011 3M 2010 (2) Regular premiums insurance 4,729.7 4,389.5 7.8% IFRS technical reserves -67.9 518.0 - Agents channel and others 3,255.0 3,646.6 -10.7% Variation w/o
Slide 34: MAPFRE AMÉRICA – key figures
MAPFRE AMÉRICA – key figures Business activity indicators Profitability indicators +20.9% -0.7p.p. 1,383.1 1,144.4 101.2% 100.5% Gross written 883.8 Non-Life 1,096.5 34.4% 34.4% and accepted Life = premiums 260.5 286.6 Non-life Combined 3M 2010 3M 2011 Ratio -6.8% 66.8% -0.7pp 66.1% 73.7 68.7 Underw
Slide 35: MAPFRE AMÉRICA: Key highlights
MAPFRE AMÉRICA: Key highlights The development of premiums reflects: Growth in – the growth in the Motor, Property and Personal Accidents lines, as a result of the premiums implementation of several sales initiatives and distribution agreements – the expansion of the Industrial Risks line The develo
Slide 36: MAPFRE AMÉRICA: Premiums and results by country
MAPFRE AMÉRICA: Premiums and results by country (1) PREMIUMS RESULTS Local Local Currency Currency COUNTRY 3M 2011 3M 2010 % 11/10 % 11/10 3M 2011 3M 2010 % 11/10 % 11/10 (2) BRAZIL 584.4 468.6 24.7% 15.0% 223.0 48.5 --- --- MEXICO 148.1 114.7 29.1% 25.0% 4.3 3.1 38.7% 33.4% VENEZUELA 146.5 121.7 20
Slide 37: MAPFRE INTERNACIONAL – key figures
MAPFRE INTERNACIONAL – key figures Business activity indicators Profitability indicators +6.2p.p. +7.1% 110.0% 489.9 103.8% 457.2 Gross written 25.6% and accepted 26.2% -0.6 p.p. premiums Non-life Ratio Combined combinado Ratio No Vida 3M 2010 3M 2011 +6.8 p.p. 84.4% 77.6% Underwriting result 3M 201
Slide 38: MAPFRE INTERNACIONAL: Key highlights
MAPFRE INTERNACIONAL: Key highlights It reflects: Premiums – a larger issuance in the USA, as a result of rate rises – the increase in business volumes in Turkey due to the economic growth, the implementation development of sales campaigns and rate rises – the depreciation of the US Dollar and the T
Slide 39: MAPFRE INTERNACIONAL: Premiums and results by country
MAPFRE INTERNACIONAL: Premiums and results by country (1) PREMIUMS RESULTS Local Local currency currency COUNTRY 3M 2011 3M 2010 % 11/10 % 11/10 3M 2011 3M 2010 % 11/10 % 11/10 USA 363.3 338.6 7.3% 9.1% -3.7 26.7 --- --- TURKEY 77.0 67.5 14.0% 20.7% 6.4 6.8 -5.6% -0.1% (2) PORTUGAL 40.8 42.3 -3.5% -
Slide 40: MAPFRE GLOBAL RISKS – key figures
MAPFRE GLOBAL RISKS – key figures Business activity indicators Profitability indicators +4.9% -56.5p.p. 251.3 263.7 34.1 141.7% 44.0 17.6% Gross written +5.9p.p. C&S and accepted 207.3 Global 229.6 premiums 85.2% Risks Combined -62.4p.p. ratio 23.5% 3M 2010 3M 2011 124.1% 61.7% Underwriting 9.5 resu
Slide 41: MAPFRE GLOBAL RISKS: Key highlights
MAPFRE GLOBAL RISKS: Key highlights Premiums This reflects the strong growth of the Fire and Property lines in the international business, especially in Latin America, which has compensated for the lower development issuance in Credit and Surety as a result of the reduction in exposures The better p
Slide 42: MAPFRE RE – key figures
MAPFRE RE – key figures Business activity indicators Profitability indicators +6.7% +4.5 p.p. 615.2 656.4 101.4% 105.9% Gross written 83.5 84.0 22.9% and accepted 22.1% +0.8p.p. Life premiums 531.7 572.5 Non-life Non-life Ratio Combined combinado Ratio No Vida +3.7 p.p. 3M 2010 3M 2011 79.3% 83.0% U
Slide 43: MAPFRE RE: Key highlights
MAPFRE RE: Key highlights Growth reflects: Premiums – the good development of the renewal campaign, especially in the business from Europe and Latin America, as well as larger cessions from the Group’s international subsidiaries development – the Euro’s strength versus other currencies (at constant
Slide 44: Appendix
Key highlights Consolidated financial information Business development Appendix Financial supplement Schedule and contacts 44 Nº 2011 - 2
Slide 45: Variations in financial debt
Variations in financial debt Change 31.3.10 30.6.10 30.9.10 31.12.10 31.3.11 y-o-y Senior debt MAPFRE S.A. - 7/2011 289.0 293.2 279.9 283.7 287.4 -1.6 Senior debt COMMERCE - 12/2013 153.1 162.6 147.0 149.8 141.4 -11.7 Syndicated credit facility - 5/2013 --- 300.2 130.0 201.1 260.1 260.1 Syndicated c
Slide 46: Consolidated income statement
Consolidated income statement 3M 2011 3M 2010 % 11/10 NON-LIFE INSURANCE AND REINSURANCE Gross written and accepted premiums 3,937.4 3,632.6 8.4% Premiums earned, net of ceded and retroceded reinsurance 2,938.2 2,648.2 11.0% Net claims incurred and variation in other technical provisions -2,091.1 -1
Slide 47: Profit breakdown by units and companies
Profit breakdown by units and companies Contribution Contribution to consolidated to consolidated result result Net Minority 3M 2011 3M 2010 Result interests € Million % € Million % DIRECT INSURANCE SPAIN 204.7 204.7 230.6 MAPFRE VIDA 39.5 39.5 12.7% 39.3 14.4% MAPFRE FAMILIAR 129.6 129.6 41.8% 161.
Slide 48: Expense and loss ratios
Expense and loss ratios RATIOS (1) (2) (3) EXPENSE RATIO LOSS RATIO COMBINED RATIO COMPANY 3M 2011 3M 2010 3M 2011 3M 2010 3M 2011 3M 2010 MAPFRE S.A. consolidated 25.4% 23.6% 71.2% 73.9% 96.6% 97.5% Direct Insurance Spain 20.4% 17.7% 66.9% 73.2% 87.2% 90.9% M APFRE FAM ILIAR 19.7% 16.5% 68.9% 74.6%
Slide 49: Breakdown of equity by units and companies
Breakdown of equity by units and companies Total equity 3M 2011 3M 2010 Var. % Stake Stake Controlling Controlling Controlling Minorities Minorities Minorities shareholder shareholder shareholder MAPFRE FAMILIAR 1,483.9 --- 1,505.8 --- -1.5% --- MAPFRE VIDA 817.3 --- 889.4 --- -8.1% --- MAPFRE EMPRE
Slide 50: Breakdown of net financial income (before taxes)
Breakdown of net financial income (before taxes) 3M 2011 3M 2010 % 11/10 Net financial income, Non-life 195.2 283.5 -31.2% - of which realised capital gains 56.9 157.9 -64.0% - of which foreign exchange gains/(losses) -4.0 -2.1 88.3% Net financial income, Other Business Activities -63.0 -34.6 82.2%
Slide 51: Financial supplement
Key highlights Consolidated financial information Business development Appendix Financial supplement Schedule and contacts 51 Nº 2011 - 2
Slide 52: Operating Companies and Units Key figures
Operating Companies and Units Key figures MAPFRE FAMILIAR MAPFRE FAMILIAR – by lines MAPFRE FAMILIAR - Motor 3M 2011 3M 2010 % 11/10 3M 2011 3M 2010 % 11/10 Gross written and accepted premiums 584.1 582.8 0.2% Gross written and accepted premiums 1,470.3 1,474.9 -0.3% Net premiums earned 568.0 566.8
Slide 53: Operating Companies and Units Key figures
Operating Companies and Units Key figures MAPFRE EMPRESAS MAPFRE VIDA 3M 2011 3M 2010 % 11/10 3M 2011 3M 2010 % 11/10 Technical Reserves excluding shadow accounting 18,092.9 15,642.8 15.7% Gross written and accepted premiums 213.0 224.0 -4.9% Shadow accounting adjustments -343.9 831.2 -141.4% Net pr
Slide 54: Operating Companies and Units Key figures
Operating Companies and Units Key figures MAPFRE AMÉRICA MAPFRE AMÉRICA – by lines 3M 2011 3M 2010 % 11/10 MAPFRE AMERICA - Non Life 3M 2011 3M 2010 % 11/10 Gross written and accepted premiums 1,383.1 1,144.4 20.9% Gross written and accepted premiums 1,096.5 883.8 24.1% Net premiums earned 1,027.9 8
Slide 55: Operating Companies and Units Key figures
Operating Companies and Units Key figures MAPFRE INTERNACIONAL MAPFRE USA CORP 3M 2011 3M 2010 % 11/10 3M 2011 3M 2010 % 11/10 Gross written and accepted premiums 489.9 457.2 7.1% Gross written and accepted premiums 363.3 338.6 7.3% Net premiums earned Net premiums earned 320.1 304.5 5.1% 406.3 387.
Slide 56: Operating Companies and Units Key figures
Operating Companies and Units Key figures MAPFRE GLOBAL RISKS MAPFRE RE 3M 2011 3M 2010 % 11/10 3M 2011 3M 2010 % 11/10 Gross written and accepted premiums 263.7 251.3 4.9% Gross written and accepted premiums 656.4 615.2 6.7% - Global Risks 229.6 207.3 10.8% - of which Life premiums 84.0 83.5 0.5% -
Slide 57: Operating Companies and Units Key figures
Operating Companies and Units Key figures MAPFRE ASISTENCIA MAPFRE INMUEBLES S.G.A. 3M 2011 3M 2010 % 11/10 3M 2011 3M 2010 % 11/10 Operating income 186.0 142.3 30.7% Operating revenues 4.9 3.6 36.1% - Gross written and accepted premiums 148.7 109.3 36.1% - of which revenues from leases 4.3 --- ---
Slide 58: Schedule and contacts
Key highlights Consolidated financial information Business development Appendix Financial supplement Schedule and contacts 58 Nº 2011 - 2
Slide 59: 2011 Provisional schedule
2011 Provisional schedule 13-April to 3-May-11 Black-out period Release 2011 First Quarter Results 4-May-11 Madrid Conference call – 2011 First Quarter Results 5-May-11 London Presentation to analysts – 2011 First Quarter Results 30-June to 20-July-11 Black-out period Release 2011 First Half Results
Slide 60: Investor Relations Department
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 Antonio Triguero Sánchez
Slide 61: 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