Slide 1: First half results 2015
First half results 2015 Presentation for investors and analysts 24th July 2015
Slide 2: Contents
Contents 1 Key highlights 2 Consolidated financial information 3 Financial supplement 4 Schedule and contacts 2
Slide 3: Business growth, bolstered by the favourable performance of financial income
1 Key highlights Business growth, bolstered by the favourable performance of financial income Revenues 14,518.7 5.8% Premiums 12,175.2 3.3% Managed savings 37,717.8 1.7% Non-life combined ratio 99.1% 3.4 p.p. ROE 8.2% -1.5 p.p. Shareholders' equity per share 2.83 2.5% Attributable result 315.6 -31.0
Slide 4: Highlights of the results
1 Key highlights Highlights of the results Growth in Non-Life insurance, the international business and reinsurance, which offset the impact of the contraction in demand in the Life business in Spain, due to the low interest rate environment Increase in financial income, thanks to the gains realised
Slide 5: MAPFRE is off to a solid start into Solvency II (I)
1 Key highlights MAPFRE is off to a solid start into Solvency II (I) 9 MAPFRE enters into Solvency II from a solid position: 9 High coverage under Solvency I (259% at December 2014) 9 Nearly 90% of eligible capital in Tier 1 items 9 High level of diversification 9 Conservative investment policy 9 Ve
Slide 6: MAPFRE is off to a solid start into Solvency II (II)
1 Key highlights MAPFRE is off to a solid start into Solvency II (II) … 9 According to the standard formula, MAPFRE’s capital ratio under Solvency II exceeds 160% as at 31.12.14 9 These levels are achieved under the following main caveats: 9 Current interpretation of the standard formula regulation
Slide 7: … and successfully faces the adoption of the new compensation system (Baremo)
1 Key highlights … and successfully faces the adoption of the new compensation system (“Baremo”) 9 The legislative process for the new compensation system is expected to end by November/December 2015 9 The rule, according to all forecasts, will be effective as of 1st January 2016 9 Among the most re
Slide 8: Geographical diversification continues to increase
1 Key highlights Geographical diversification continues to increase Premiums(1) Contribution to consolidated results EUR M % MAPFRE RE IBERIA 202.2 52.4% 2,035.8 (15.7%) BRAZIL 85.5 22.1% APAC 61.1 (0.5%) IBERIA LATAM SOUTH 40.1 10.4% 3,706.0 (28.5%) NORTH AMERICA -57.3 -14.9% LATAM NORTH EMEA 10.8
Slide 9: Key figures
1 Key highlights Key figures (*) 6M 2014 6M 2015 U% Results Total gross written and accepted premiums 11,784.6 12,175.2 3.3% - Non-Life 8,623.0 9,639.3 11.8% - Life 3,161.6 2,535.9 -19.8% Net result 457.7 315.6 -31.0% Earnings per share (euro cents) 0.15 0.10 -31.0% Balance sheet Total assets 60,560
Slide 10: Consolidated financial information
Contents 1 Key highlights 2 Consolidated financial information 3 Financial supplement 4 Schedule and contacts 10
Slide 11: Consolidated income statement
2 Consolidated financial information Consolidated income statement (*) 6M 2014 6M 2015 U% NON-LIFE INSURANCE AND REINSURANCE Gross written and accepted premiums 8,623.0 9,639.3 11.8% Premiums earned, net of ceded and retroceded reinsurance 6,416.3 7,045.9 9.8% Net claims incurred and variation in ot
Slide 12: Consolidated income statement – Impact of CatalunyaCaixa 2014
2 Consolidated financial information Consolidated income statement – Impact of CatalunyaCaixa 2014 U % vs. (*) Catalunya 6M 2014 6M 2014 6M 2015 6M 2014 Caixa Restated Restated NON-LIFE INSURANCE AND REINSURANCE Gross written and accepted premiums 8,623.0 20.6 8,602.3 9,639.3 12.1% Premiums earned,
Slide 13: Development of Non-Life insurance results
2 Consolidated financial information Development of Non-Life insurance results Non-Life Account (*) 6M 2014 6M 2015 U% Gross written and accepted premiums 8,623.0 9,639.3 11.8% Underwriting result 276.8 62.2 -77.5% Net financial and other non-technical income 368.9 458.8 24.4% Result of Non-life bus
Slide 14: Development of Non-Life insurance results: key highlights
2 Consolidated financial information Development of Non-Life insurance results: key highlights The 11.8% increase in business volumes (+€1,016 million) with respect to the first half of previous year reflects: Premiums • the appreciation of the US dollar, which had a positive impact on business gr
Slide 15: Development of Non-Life insurance results: key highlights
2 Consolidated financial information Development of Non-Life insurance results: key highlights In the second quarter, the 4.2% decrease in business volumes with respect to the first quarter of 2015 reflects the following variations: Premiums • the increase in issuance in LATAM NORTH (+€383 million
Slide 16: Development of Non-Life insurance results: key highlights
2 Consolidated financial information Development of Non-Life insurance results: key highlights Year-on-year increase of 2.9 percentage points, which reflects: Loss 9 an exceptional claims volume in NORTH AMERICA due to the strong snowstorms that hit experience the USA, which affected Home and Moto
Slide 17: Development of Non-Life insurance results: key highlights
2 Consolidated financial information Development of Non-Life insurance results: key highlights Expense ratio Year-on-year increase of 0.5 percentage points, mainly due to: 9 higher acquisition costs in Argentina, Chile, Spain and Peru 9 lower recoveries of ceded reinsurance commissions in the USA
Slide 18: Development of Non-Life insurance results: key highlights
2 Consolidated financial information Development of Non-Life insurance results: key highlights Year-on-year the increase in income reflects: Net financial 9 the positive impact of higher interest rates in BRAZIL and other non- 9 the depreciation of the euro against the main currencies, except the
Slide 19: Development of Life Assurance results
2 Consolidated financial information Development of Life Assurance results Life Account (*) 6M 2014 6M 2015 U% Gross written and accepted premiums 3,161.6 2,535.9 -19.8% Underwriting and financial result 316.1 324.8 2.8% Unrealised gains from unit-linked investments(1) 57.7 45.0 -22.0% Result of Lif
Slide 20: Development of Life Assurance results: key highlights
2 Consolidated financial information Development of Life Assurance results: key highlights The 19.8% decrease in business volumes with respect to the first half of the previous year reflects: 9 in IBERIA, a decline of €635 million as a result of: Premiums • the lower premiums volume in Life-Saving
Slide 21: Development of Life Assurance results: key highlights
2 Consolidated financial information Development of Life Assurance results: key highlights The 2.8% improvement, compared to the same period of previous year, which adjusted for Underwriting CatalunyaCaixa’s business would amount to 16.4%, reflects: & financial result 9 the positive mark-to-market
Slide 22: Development of results from Other Business Activities
2 Consolidated financial information Development of results from Other Business Activities Other Business Activities(1) 6M 2014 6M 2015 U% Operating revenues 276.3 237.9 -13.9% Operating expenses -274.2 -266.8 -2.7% Net financial income & other -34.3 -18.4 -46.4% Results from Other Business Activiti
Slide 23: Development of results from Other Business Activities
2 Consolidated financial information Development of results from Other Business Activities Operating revenues 13.9% decrease in operating revenues, coming mainly from: and expenses 9 IBERIA, which in the first quarter of 2014 included gains from the cancellation of liabilities at MAPFRE INMUEBLES
Slide 24: Consolidated result
2 Consolidated financial information Consolidated result (*) 6M 2014 6M 2015 U% Result on restatement of financial accounts -45.4 -29.1 -35.9% Result before tax and minority interests 941.9 814.4 -13.5% Taxes -268.7 -272.8 1.5% Result after tax 673.2 541.6 -19.5% Result after tax from discontinued o
Slide 25: Development of the consolidated result: key highlights
2 Consolidated financial information Development of the consolidated result: key highlights Decline in the underwriting result of the Non-Life business, mainly due to the losses stemming from the exceptionally strong snowstorms in the United States Pre-tax Good underwriting and financial result
Slide 26: Development of the balance sheet
2 Consolidated financial information Development of the balance sheet 30.6.14 31.12.14 30.6.15 Goodwill 1,946.2 2,030.5 2,036.6 Other intangible assets 1,979.9 2,046.3 1,897.5 The variations with respect to 31/12/2014 Other fixed assets 319.1 303.8 301.2 reflect mainly: Cash & equivalents 1,015.4
Slide 27: A prudent investment policy adapted to the insurance business
2 Consolidated financial information A prudent investment policy adapted to the insurance business Investment portfolio – Breakdown by type of asset Mutual funds Other investments 1,189.8 (2.6%) 3,381.0 (7.3%) Cash 965.8 (2.1%) Equities 1,502.6 (3.3%) Property 2,170.4 (4.7%) €45,959.2 Fixed income –
Slide 28: Development of equity
2 Consolidated financial information Development of equity 2015 2014 Shareholders' Minority Total Total Equity interests Equity Equity BALANCE AS AT PRIOR YEAR END 9,152.7 2,316.7 11,469.4 9,893.7 Additions and deductions accounted for directly in equity Investments available for sale -784.3 -191.4
Slide 29: Development of equity: key highlights
2 Consolidated financial information Development of equity: key highlights Investments available for Decrease in the market value of the financial investment portfolio in Europe as a sale result of the Greek economic crisis Translation Negative impact of the application of the SIMADI exchange ra
Slide 30: Financial supplement
Contents 1 Key highlights 2 Consolidated financial information 3 Financial supplement 4 Schedule and contacts 30
Slide 31: Written premiums by Regional Areas
3 Financial supplement Written premiums by Regional Areas Cumulative figures (*) Quarterly figures (*) U % o/ U % o/ REGIONAL AREA 6M 2014 6M 2015 U% REGIONAL AREA 2Q 2014 1Q 2015 2Q 2015 1Q 2015 2Q 2014 IBERIA 4,298.2 3,706.0 -13.8% IBERIA 1,671.2 2,185.3 1,520.7 -30.4% -9.0% BRAZIL 1,531.4 1,192.0
Slide 32: Attributable results by Regional Areas
3 Financial supplement Attributable results by Regional Areas Cumulative figures (*) Quarterly figures (*) U % o/ U % o/ REGIONAL AREA 6M 2014 6M 2015 U% REGIONAL AREA 2Q 2014 1Q 2015 2Q 2015 1Q 2015 2Q 2014 IBERIA 227.3 202.2 -11.0% IBERIA 123.7 111.9 90.3 -19.3% -27.0% BRAZIL 68.3 85.5 25.2% BRAZI
Slide 33: Information by Regional Areas and countries - IBERIA
3 Financial supplement Information by Regional Areas and countries - IBERIA Cumulative figures (*) PREMIUMS RESULTS(1) 6M 2014 6M 2015 U % 6M 2014 6M 2015 U % IBERIA 4,298.2 3,706.0 -13.8% 383.7 289.8 -24.5% SPAIN 4,192.6 3,591.9 -14.3% 381.6 289.4 -24.2% PORTUGAL 105.6 114.1 8.0% 2.1 0.4 -81.0% Qua
Slide 34: Information by Regional Areas and countries - LATAM Cumulative figures
3 Financial supplement Information by Regional Areas and countries - LATAM Cumulative figures PREMIUMS RESULTS(1) U % local U % local 6M 2014 6M 2015 U% currency(2) 6M 2014 6M 2015 U% currency(2) BRAZIL 2,705.5 2,512.3 -7.1% -1.2% 341.1 444.9 30.4% 41.1% LATAM SOUTH 1,429.7 1,298.1 -9.2% 87.9 86.6 -
Slide 35: Information by Regional Areas and countries - LATAM Quarterly figures
3 Financial supplement Information by Regional Areas and countries - LATAM Quarterly figures PREMIUMS RESULTS(1) U % o/ U % o/ U % o/ U % o/ 2Q 2014 1Q 2015 2Q 2015 1Q 2015 2Q 2014 2Q 2014 1Q 2015 2Q 2015 1Q 2015 2Q 2014 BRAZIL 1,531.4 1,192.0 1,320.3 10.8% -13.8% 190.1 228.5 216.4 -5.3% 13.8% LATAM
Slide 36: Information by Regional Areas and countries - INTERNATIONAL Cumulative figures
3 Financial supplement Information by Regional Areas and countries - INTERNATIONAL Cumulative figures (1) PREMIUMS RESULTS U % local U % local (2) (2) 6M 2014 6M 2015 U % currency 6M 2014 6M 2015 U % currency NORTH AMERICA 1,016.4 1,363.2 34.1% 37.4 -93.1 --- of which: USA 868.7 1,163.9 34.0% 6.7% 3
Slide 37: Information by Regional Areas and countries - INTERNATIONAL Quarterly figures
3 Financial supplement Information by Regional Areas and countries - INTERNATIONAL Quarterly figures PREMIUMS RESULTS(1) U % o/ U % o/ U % o/ U % o/ 2Q 2014 1Q 2015 2Q 2015 1Q 2015 2Q 2014 2Q 2014 1Q 2015 2Q 2015 1Q 2015 2Q 2014 NORTH AMERICA 530.4 631.8 731.4 15.8% 37.9% 28.4 -68.6 -24.5 -64.3% ---
Slide 38: MAPFRE RE
3 Financial supplement MAPFRE RE Cumulative figures PREMIUMS RESULTS(1) 6M 2014 6M 2015 U % 6M 2014 6M 2015 U % MAPFRE RE 1,885.6 2,035.8 8.0% 93.9 100.0 6.5% Quarterly figures PREMIUMS RESULTS(1) U % o/ U % o/ U % o/ U % o/ 2Q 2014 1Q 2015 2Q 2015 1Q 2015 2Q 2014 2Q 2014 1Q 2015 2Q 2015 1Q 2015 2Q
Slide 39: Regional Areas and Reinsurance: Income Statement – Non-Life June 2015
3 Financial supplement Regional Areas and Reinsurance: Income Statement – Non-Life June 2015 LATAM LATAM NORTH CONSOLID. NON-LIFE INSURANCE AND REINSURANCE IBERIA NORTH SOUTH BRAZIL EMEA AMERICA APAC REINSURANCE ADJUST. TOTAL Gross written and accepted premiums 2,846.5 1,011.5 1,168.3 1,622.4 708.3
Slide 40: Regional Areas and Reinsurance: Income Statement – Life June 2015
3 Financial supplement Regional Areas and Reinsurance: Income Statement – Life June 2015 LATAM LATAM NORTH CONSOLID. LIFE INSURANCE AND REINSURANCE IBERIA NORTH SOUTH BRAZIL EMEA AMERICA APAC REINSURANCE ADJUST. TOTAL Gross written and accepted premiums 859.5 170.9 129.8 889.9 108.1 5.7 0.0 372.0 0.
Slide 41: Income Statement – Other business activities and net result June 2015
3 Financial supplement Regional Areas and Reinsurance: Income Statement – Other business activities and net result June 2015 HOLDING & LATAM LATAM NORTH CONSOL. IBERIA NORTH SOUTH BRAZIL EMEA AMERICA APAC REINSURANCE ADJUST. TOTAL Results from other business activities 37.6 -1.4 -1.6 4.1 0.2 -2.9 0.
Slide 42: Regional Areas and Reinsurance: Income Statement – Non-Life June 2014
3 Financial supplement Regional Areas and Reinsurance: Income Statement – Non-Life June 2014 (*) LATAM LATAM NORTH REINSURAN CONSOLID. NON-LIFE INSURANCE AND REINSURANCE IBERIA NORTH SOUTH BRAZIL EMEA AMERICA APAC CE ADJUST. TOTAL Gross written and accepted premiums 2,803.9 531.3 1,226.0 1,759.0 546
Slide 43: Regional Areas and Reinsurance: Income Statement – Life June 2014
3 Financial supplement Regional Areas and Reinsurance: Income Statement – Life June 2014 (*) LATAM LATAM NORTH REINSURAN CONSOLID. LIFE INSURANCE AND REINSURANCE IBERIA NORTH SOUTH BRAZIL EMEA AMERICA APAC CE ADJUST. TOTAL Gross written and accepted premiums 1,494.3 116.2 203.8 946.5 68.6 1.8 0.0 33
Slide 44: Income Statement – Other business activities and net result June 2014
3 Financial supplement Regional Areas and Reinsurance: Income Statement – Other business activities and net result June 2014 (*) HOLDING & LATAM LATAM NORTH REINSURAN CONSOL. IBERIA NORTH SOUTH BRAZIL EMEA AMERICA APAC CE ADJUST. TOTAL Results from other business activities 34.4 -0.8 0.8 6.8 -0.5 -1
Slide 45: Operating companies: Key figures MAPFRE FAMILIAR
3 Financial supplement Operating companies: Key figures MAPFRE FAMILIAR (*) 6M 2014 6M 2015 U% Gross written and accepted premiums 2,202.9 2,240.2 1.7% Net premiums earned 1,686.3 1,691.3 0.3% Underwriting result 60.3 19.1 -68.3% Net financial income 80.9 97.2 20.1% Other business activities 6.5 10.
Slide 46: MAPFRE FAMILIAR – Domestic business by insurance lines
3 Financial supplement Operating companies: Key figures MAPFRE FAMILIAR – Domestic business by insurance lines (*) Motor 6M 2014 6M 2015 U% Health 6M 2014 6M 2015 U% Gross written and accepted premiums Gross written and accepted premiums 1,024.7 1,018.5 -0.6% 425.2 456.4 7.3% Net premiums earned 911
Slide 47: Operating companies: Key figures MAPFRE FAMILIAR (contd.) MAPFRE EMPRESAS
3 Financial supplement Operating companies: Key figures MAPFRE FAMILIAR (contd.) (*) MAPFRE EMPRESAS Other 6M 2014 6M 2015 U% 6M 2014 6M 2015 U% Gross written and accepted premiums 99.3 103.3 4.0% Gross written and accepted premiums 368.7 362.6 -1.7% Net premiums earned 82.5 79.1 -4.1% Net premiums
Slide 48: Operating companies: Key figures MAPFRE VIDA
3 Financial supplement Operating companies: Key figures MAPFRE VIDA (*) 6M 2014 6M 2015 U% Breakdown of premiums 6M 2014 6M 2015 U% Technical Reserves excluding Regular Premiums 275.6 331.3 20.2% shadow accounting 18,318.2 18,146.8 -0.9% - Agents' and other channels 131.8 192.6 46.1% Shadow accounti
Slide 49: Operating companies: Key figures MAPFRE VIDA
3 Financial supplement Operating companies: Key figures MAPFRE VIDA (*) Managed savings 6M 2014 6M 2015 U% Change in funds under management(1) 6M 2014 6M 2015 Regular premiums insurance 5,268.7 5,713.7 8.4% IFRS technical reserves (2) 1,718.9 -2,840.2 - Agents' channel and others 3,712.9 3,774.4 1.7
Slide 50: Operating companies: Key figures MAPFRE AMÉRICA
3 Financial supplement Operating companies: Key figures MAPFRE AMÉRICA MAPFRE AMÉRICA (by lines) 6M 2014 6M 2015 U% Non-Life 6M 2014 6M 2015 U % Gross written and accepted premiums 4,582.2 4,774.9 4.2% Gross written and accepted premiums 3,315.7 3,584.3 8.1% Net premiums earned 3,215.3 3,220.3 0.2%
Slide 51: Operating companies: Key figures MAPFRE BRASIL
3 Financial supplement Operating companies: Key figures MAPFRE BRASIL MAPFRE BRASIL (by lines) 6M 2014 6M 2015 U% Non-Life 6M 2014 6M 2015 U% Gross written and accepted premiums 1,690.4 1,542.2 -8.8% Gross written and accepted premiums 2,636.9 2,432.1 -7.8% Net premiums earned 1,233.2 1,296.6 5.1% N
Slide 52: Operating companies: Key figures MAPFRE INTERNACIONAL
3 Financial supplement Operating companies: Key figures MAPFRE INTERNACIONAL MAPFRE INTERNACIONAL (by lines) 6M 2014 6M 2015 U% Non-Life 6M 2014 6M 2015 U % Gross written and accepted premiums 1,294.6 1,748.3 35.0% Gross written and accepted premiums 1,224.2 1,634.5 33.5% Net premiums earned 1,037.6
Slide 53: Operating companies: Key figures MAPFRE USA
3 Financial supplement Operating companies: Key figures MAPFRE USA 6M 2014 6M 2015 U % Gross written and accepted premiums 790.8 1,040.1 31.5% Net premiums earned 675.0 873.9 29.5% Underwriting result -22.0 -161.2 --- Net financial income 50.5 60.9 20.6% Other business activities 0.0 0.0 --- Other n
Slide 54: Operating companies: Key figures MAPFRE RE
3 Financial supplement Operating companies: Key figures MAPFRE RE MAPFRE RE (by lines) 6M 2014 6M 2015 U % Non-Life 6M 2014 6M 2015 U % Gross written and accepted premiums 1,885.6 2,035.8 8.0% Gross written and accepted premiums 1,555.2 1,663.8 7.0% Net premiums earned 1,013.9 1,217.2 20.1% Net prem
Slide 55: Operating companies: Key figures MAPFRE GLOBAL RISKS, MAPFRE ASISTENCIA
3 Financial supplement Operating companies: Key figures MAPFRE GLOBAL RISKS MAPFRE ASISTENCIA 6M 2014 6M 2015 U % 6M 2014 6M 2015 U% Gross written and accepted premiums 568.2 596.9 5.1% Operating income 568.5 635.3 11.8% - Global Risks 527.1 547.2 3.8% - Gross written and accepted premiums 472.3 565
Slide 56: Net financial income: selected information
3 Financial supplement Net financial income: selected information Breakdown of net financial income (before taxes) (*) 6M 2014 6M 2015 U % Net financial income, Non-life 401.3 473.2 17.9% - of which realised capital gains and impairments 49.4 90.7 83.6% - of which foreign exchange gains/(losses) 24.
Slide 57: Financial result: selected information
3 Financial supplement Financial result: selected information Net realisation gains (*) 6M 2014 6M 2015 MAPFRE FAMILIAR 23.6 44.9 MAPFRE VIDA 13.2 14.1 MAPFRE EMPRESAS 3.8 10.4 MAPFRE AMÉRICA 0.0 2.4 MAPFRE GLOBAL RISKS 10.5 2.8 MAPFRE RE 6.2 17.4 MAPFRE ASISTENCIA 0.0 0.0 MAPFRE INTERNACIONAL 6.3 1
Slide 58: Key management ratios – Companies
3 Financial supplement Development of Non-Life insurance Key management ratios – Companies (*) EXPENSE(1) LOSS(2) COMBINED(3) 6M 2014 6M 2015 6M 2014 6M 2015 6M 2014 6M 2015 MAPFRE FAMILIAR 20.7% 21.0% 75.3% 77.4% 96.0% 98.4% MAPFRE EMPRESAS 25.9% 26.5% 56.5% 62.4% 82.4% 88.9% MAPFRE AMÉRICA 32.9% 3
Slide 59: Key management ratios – Regional Areas and Business Units
3 Financial supplement Development of Non-Life insurance Key management ratios – Regional Areas and Business Units (*) EXPENSE(1) LOSS(2) COMBINED(3) 6M 2014 6M 2015 6M 2014 6M 2015 6M 2014 6M 2015 IBERIA 21.5% 21.9% 72.7% 75.4% 94.2% 97.3% LATAM NORTH 34.7% 34.4% 58.7% 59.7% 93.4% 94.1% LATAM SOUTH
Slide 60: Schedule and contacts
Contents 1 Key highlights 2 Consolidated financial information 3 Financial supplement 4 Schedule and contacts 60
Slide 61: Schedule
4 Schedule and contacts Schedule Release First Half 2015 Results 24-Jul-2015 Madrid Conference Call - First Half 2015 Results 14-Oct to 3-Nov Black-out period Release Third Quarter 2015 Results 4-Nov-2015 Madrid Conference Call – Third Quarter 2015 Results 5-Nov-2015 London Presentation
Slide 62: Investor Relations Department
4 Schedule and contacts Investor Relations Department Luigi Lubelli Deputy General Manager – Finance +34-91-581-6071 Deputy Director Capital Markets Natalia Núñez Arana +34-91-581-8664 Head of Investor Relations Antonio Triguero Sánchez Investor Relations +34-91-581-5211 Alberto Fernández-Sanguino I
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