Slide 1: Financial results - Analyst and investor presentation
September 2018 Financial results Analyst and investor presentation November 8th, 2018
Slide 2: Key Figures 9M 2018
Key Figures > 9M 2018 Δ (constant 9M 2018 Δ exchange rates) Revenue 20,297 -4.7% 1.4% Total written and accepted premiums 17,219 -4.3% 2.2% - Non-Life 13,086 -7.1% -0.7% - Life 4,132 6.2% 12.6% Non-Life Combined Ratio 98.1% -0.7 p.p Non-Life Loss Ratio 69.7% -1.0 p.p Non-Life Expense Ratio 28.4% 0.3
Slide 3: Highlights 9M 2018
Highlights > 9M 2018 Solid results in a complex market and with restructuring in key units Strong currency › -€31 mn impact YTD on net result and over -€850 mn on shareholders’ equity since 01.01.2017 headwinds › Currency expected to be a drag on P&L during coming months › 2019 to be a turning point
Slide 4: MAPFRE is strongly committed to its shareholders
MAPFRE is strongly committed to its shareholders Dividend › Commitment to deliver dividend stability within the 50-65% target payout range 2018 Net income › Focused on surpassing 2017 attributable result (~€700 mn), assuming ordinary NatCat losses in 4Q Strategic Plan › Continue with an emphasis on
Slide 5: Key figures by business unit
Key figures by business unit Premiums – Distribution by business unit Attributable result Premiums GLOBAL RISKS 9M 2018 Δ mn Δ% 9M 2018 Δ% ASISTENCIA 4.4% IBERIA 354.0 (35.3) -9.1% 5,939 13.0% 3.7% LATAM 134.7 (22.0) -14.0% 5,175 -16.5% INSURANCE BRAZIL 39.2 (46.8) -54.4% 2,986 -13.4% MAPFRE RE IBER
Slide 6: Depreciation across all currencies has been a drag on the profit and loss account
Depreciation across all currencies has been a drag on the profit and loss account Premiums (€ bn) ∆ % constant exchange rates Average exchange rates (YoY) Reported Adjusted* -4.3% +2.2% +3.4% -2.0% Chilean peso 3.9 +6.2% 4.1 +12.6% +5.3% -3.8% Colombian peso -5.6% US dollar 14.1 -7.1% 13.1 -0.7% +2.
Slide 7: Resilient local currency growth and improving underlying trends (I/II)
Resilient local currency growth and improving underlying trends (I/II) IBERIA BRAZIL › Excellent Non Life growth (+7.0%), across all business lines › Pick up in Life (+10%*), thanks to lending activity recovery, › Best in class combined ratio (93.8%), especially in Motor growth in General P&C (+3%*)
Slide 8: Resilient local currency growth and improving underlying trends (II/II)
Resilient local currency growth and improving underlying trends (II/II) EURASIA MAPFRE RE › Italy: growth in line with market context and improving › Excellent profitability levels, despite an increase in attritional profitability claims and a large 3Q NatCat event › Germany: premiums +4% › 2018 Nat
Slide 9: Adjusted attributable result
Adjusted attributable result 9M 2017 9M 2018 Δ (mn) Δ (%) Attributable result 444.6 528.8 84.2 18.9% (1) Weather related and NatCat claims (209.1) (58.1) 151.0 Direct insurance (33.2) (11.5) 21.7 MAPFRE RE (85.1) (46.6) 38.5 GLOBAL RISKS (90.8) - 90.8 (2) Corporate transactions 15.7 (11.5) (27.2) (3
Slide 10: Brazil > balance sheet adjustments
Brazil > balance sheet adjustments Premiums Attributable result 12M 2016 12M 2017 6M 2018 9M 2018 12M 2016 12M 2017 6M 2018 9M 2018 BB MAPFRE SH1 PARTICIPAÇÕES S.A 1,955.7 2,109.5 925.9 1,396.4 112.8 104.1 53.5 76.7 COMPANHIA SEGUROS ALIANÇA DO BRASIL S.A. 1,755.4 1,900.6 817.6 1,244.9 107.1 103.0 5
Slide 11: Non-Life > Key figures
Non-Life > Key figures Result of Non-Life business Combined ratio Premiums 9M 2018 Δ% 9M 2018 Δ 9M 2018 Δ% IBERIA 304.2 -9.3% 93.8% -0.2 p.p 3,952 7.0% LATAM 141.2 -44.3% 100.6% 4.3 p.p 3,722 -19.3% BRAZIL 22.2 -87.8% 103.1% 8.5 p.p 1,995 -14.1% LATAM NORTH 37.4 66.0% 96.6% -2.4 p.p 718 -40.2% INSUR
Slide 12: Non-Life > Key highlights (I/IV)
Non-Life > Key highlights (I/IV) IBERIA Premiums Results › General P&C is growing at a strong rate (+12%) driven by › Excellent performance in Motor, based on tariff increases, lower Commercial Multirisk material damage claims costs and positive developments at Verti › Good performance in retail Mot
Slide 13: Non-Life > Key highlights (II/IV)
Non-Life > Key highlights (II/IV) NORTH AMERICA Premiums Results › USA: positive trends in Northeast (+1.3% in USD), mitigating the › USA: fall in other states › East Coast storms: -€11.5 mn after tax (1.2 p.p. on the › Puerto Rico: strong local currency growth (+26%) due to the Combined Ratio in th
Slide 14: Non-Life > Key highlights (III/IV)
Non-Life > Key highlights (III/IV) LATAM NORTH Premiums Results › Solid local currency growth in Mexico in Motor (+4%) and Health › Reduction of the combined ratio (-2.4 p.p.) thanks to (+26%), as well as double digit growth in the Dominican Republic improvements in claims handling and management as
Slide 15: Non-Life > Key highlights (IV/IV)
Non-Life > Key highlights (IV/IV) GLOBAL RISKS Premiums Results › Negative impact from exchange rate movements as well as the › Significant improvement in the combined ratio, due to lower cancellation of relevant policies level of large claims compared to 2017 › Net capital gains of €0.8 mn euros (€
Slide 16: Life > Key figures
Life > Key figures Result of Life business Premiums 9M 2018 Δ% 9M 2018 Δ% IBERIA 174.1 -11.2% 1,987 26.9% BRAZIL 338.7 9.8% 991 -12.0% OTHER* 53.7 -16.9% 1,154 -3.9% TOTAL 566.5 -0.5% 4,132 6.2% *Includes all other Life business, as well as consolidation adjustments Million euros 16
Slide 17: Life > Key highlights
Life > Key highlights IBERIA Premiums Results › Strong underlying growth: +11%, excluding the impact of UNIÓN › Fall in result due to 2017 one-offs: cancellation of a DUERO VIDA premiums in 9M 2017 (€36 mn) and a large group bancassurance contingent payment provision (€29 mn) and gain policy in 9M 2
Slide 18: Market volatility has been a drag on shareholders' equity
Market volatility has been a drag on shareholders’ equity . . . Breakdown of shareholders’ equity Currency conversion differences % Δ currency 12.31.2016 12.31.2017 09.30.2018 09.30.2018 Δ YTD YTD Capital, retained earnings and reserves 8,614 8,764 8,835 Brazilian real -680 -170 -15.2% Treasury stoc
Slide 19: ... as well as Assets under Management
. . . as well as Assets under Management Investment portfolio – Breakdown by asset class Assets under Management -0.8% 49.9 Other investments 60.1 59.6 4.7 (9.5%) 10.3 -5.6% 9.7 Cash (5.2%) 2.6 Mutual funds (2.6%) 1.3 Equity (5.3%) 2.7 Real Estate (4.3%) 2.1 49.8 + 0.2% 49.9 Corporate fixed income (
Slide 20: Lower level of realized gains and resilient portfolio yields in a highly volatile market
Lower level of realized gains and resilient portfolio yields in a highly volatile market Actively managed portfolios1 - Non-Life (7.2 bn€) Actively managed portfolios1 - Life (6.2 bn€) 6.8 7.1 7.0 6.7 Duration 6.4 6.7 6.8 6.9 Duration (%) (%) 4.10 3.93 3.97 3.94 2.59 2.40 2.34 2.34 1.42 1.32 1.09 1.
Slide 21: High level of financial flexibility and strong credit metrics
High level of financial flexibility and strong credit metrics Capital structure Leverage (%) 20.5% Subordinated 18.1% 18.1% Bank debt financing 9% 3% Senior debt 8% Equity € 12.3 80% billion 09.30.2017 12.31.2017 09.30.2018 Interest coverage (x) 21.2 17.2 17.7 Highlights › High level of financial fl
Slide 22: Robust and resilient solvency position
Robust and resilient solvency position, despite high market volatility throughout the year Solvency II ratio 200.2% 203.1% 201.7% Fully loaded* 179.9% 183.9% 182.5% 8.9 9.0 8.9 High quality capital base 4.4 4.4 4.4 €8.3 bn in Tier 1 (93% EOF) 12.31.2017 03.31.2018 06.30.2018 Solvency Capital Require
Slide 23: Wrap-up
Wrap-up Headwinds from foreign exchange To continue affecting P&L in coming months Brazilian business to gain momentum on the back of an improved market context Reinforced agreement with leading Brazilian financial institution, while leveraging MAPFRE´s expertise in Motor Effective profitability ini
Slide 24: Save the Date - Investor Day 2019
Save the Date Investor Day › April 8th 2019 2019 › Details to be provided at a later date 24
Slide 25: Terminology
03 Wrap-up Terminology Revenue Top line figure which includes premiums, financial income, and revenue from non-insurance entities and other revenue Combined ratio – Non-Life Expense ratio + Loss ratio Expense ratio – Non-Life (Operating expenses, net of reinsurance – other technical revenue + other
Slide 26: Investor Relations
03 Wrap-up Investor Relations Natalia Núñez Investor Relations and Capital Markets Director natalia.n@mapfre.com Antonio Triguero Leandra Clark Marta Sanchidrián Raquel Alfonso atriguero@mapfre.com clarkle@mapfre.com sanchim@mapfre.com asraque@mapfre.com 26
Slide 27: Contact us
03 Wrap-up Contact us If you are an investor or shareholder and would like to receive more information regarding the MAPFRE share or have questions regarding MAPFRE´s results and strategy, please find our contact information below: Shareholders Investors Investor Relations MAPFRE S.A. 900 10 35 33 (
Slide 28: 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 development, its results and its divi