Slide 1: Financial results Nine months 2017
Financial results Nine months 2017 Analyst and investor presentation October 26th, 2017
Slide 2: Key Highlights
01 Key Highlights > 9M 2017 01 KEY HIGHLIGHTS 0 2 F I N A N C I A L OV E RV I E W › P ro f i t & L o s s › Balance sheet & Solvency 2
Slide 3: Main highlights 9M 2017
01 Key Highlights > 9M 2017 Main highlights > 9M 2017 › Estimated impact of extraordinary catastrophic events: €150-200 mn on MAPFRE´s attributable result › Best estimate is €176.4 mn for third quarter reporting purposes › Too early to have an accurate estimate of the gross loss of these events › Ve
Slide 4: Key Figures 9M 2017
01 Key Highlights > 9M 2017 Key Figures > 9M 2017 9M 2017 Δ 9M 2017 Δ Revenue 21,292 1.6% Ex - NatCat* Total written and accepted premiums 17,987 5.1% - Non-Life 14,094 4.7% - Life 3,893 6.9% Non-Life Combined Ratio 98.7% 1.5 p.p 96.3% -0.9 p.p Non-Life Loss Ratio 70.6% 1.4 p.p 68.3% -0.9 p.p Non-Li
Slide 5: Favorable premium trends across the majority of regions and segments
01 Key Highlights > 9M 2017 Favorable premium trends across the majority of regions and segments Revenue +1.6% › On track to meet premium growth, financial revenue impacted by low yields in Brazil and Europe, as well as lower contribution of unit- linked investments 21.0 21.3 › Significant growth in
Slide 6: Underlying improvements in profitability overshadowed by catastrophes
01 Key Highlights > 9M 2017 Underlying improvements in profitability overshadowed by catastrophes Combined Ratio Impact NatCat* 98.7% -0.9 p.p. 2.4 p.p. › Combined ratio in line with target, excluding 3Q NatCat events, thanks to excellence in underwriting and technical management as well as strict c
Slide 7: Investment portfolio and shareholders' equity impacted by market volatility and currency movements
01 Key Highlights > 9M 2017 Investment portfolio and shareholders’ equity impacted by market volatility and currency movements Shareholders’ equity -3.8% › Fall in shareholders’ equity due to the depreciation of several currencies during the period, mainly the Brazilian real, the US 9.1 8.8 dollar a
Slide 8: Exceptional size and frequency of catastrophic events during the quarter
01 Key Highlights > 9M 2017 Exceptional size and frequency of catastrophic events during the quarter Pre-tax and Post-tax and non-controlling non-controlling interests* interests* Impact by event › Insured global catastrophe losses in 2017 have Hurricane Harvey 40.0 28.5 been among the largest ever
Slide 9: MAPFRE RE plays an important role in the Group's risk management policy
01 Key Highlights > 9M 2017 MAPFRE RE plays an important role in the Group’s risk management policy, managing and controlling CAT exposure and monitoring reinsurer credit risk Reinsurance structure for MAPFRE Group business* Multi-layer global catastrophe protection MAPFRE MAPFRE RE Proportional MAP
Slide 10: MAPFRE continues focusing all efforts on its profitable growth strategy
01 Key Highlights > 9M 2017 MAPFRE continues focusing all efforts on its profitable growth strategy Client Digital Excellence Culture and orientation transformation in technical human talent management › Key targets: › Average ROE (11%) and combined ratio (<96%) target are unlikely to be achieved, d
Slide 11: Profitable growth strategy: major achievements in 2017 in several main markets
01 Key Highlights > 9M 2017 Profitable growth strategy: major achievements in 2017 in several main markets IBERIA LATAM NORTH & LATAM SOUTH Motor › Excellent Combined Ratio in Attributable result › Mexico: Strong reduction in Motor (91.2%), due to expense ratio, cancellation of cancellation of unpro
Slide 12: Profitable growth strategy: cancellation of unprofitable business and restructuring still ongoing
01 Key Highlights > 9M 2017 Profitable growth strategy: cancellation of unprofitable business and restructuring still ongoing in some units › Competitive market environment is still affecting Motor (Combined Ratio: 107%), despite measures taken (tariff increases, cancellation of loss-making Brazil b
Slide 13: Main drivers of variation of net result – 9M 2017 vs. 9M 2016
01 Key Highlights > 9M 2017 Main drivers of variation of net result – 9M 2017 vs. 9M 2016 Non-Life Life 572.0 99.7 444.6 90.2 27.1 29.0 24.2 4.9 -10.4 -16.7 -15.5 -106.7 -253.2 Net result - Δ Underlying Total catastrophes Δ Non-technical Δ Underlying Δ Financial gains, Δ Underlying result Reversal o
Slide 14: Positive trends in main markets, excluding natural catastrophes
01 Key Highlights > 9M 2017 Positive trends in main markets, excluding natural catastrophes Attributable result – Impact of NatCat 621.0 176.4 444.6 389.3 170.0 72.7 25.0 46.9 50.8 86.0 1.2 97.3 73.0 29.5 23.8 46.9 29.7 21.3 -0.5 -51.1 -87.2 -14.2 IBERIA BRAZIL LATAM LATAM NORTH EMEA APAC MAPFRE RE
Slide 15: Financial Overview
02 Financial Overview 01 KEY HIGHLIGHTS 0 2 F I N A N C I A L OV E RV I E W › P ro f i t & L o s s › Balance sheet & Solvency 15
Slide 16: Key figures by business unit
02 Financial Overview Key figures by business unit Premiums – Distribution by business unit Attributable result Premiums 9M 2017 Δ% 9M 2017 Δ% ASISTENCIA 3.9% IBERIA 389.3 8.2% 5,258 3.7% GLOBAL RISKS 4.8% LATAM 156.7 6.6% 6,198 14.0% BRAZIL 86.0 -15.6% 3,449 7.8% IBERIA MAPFRE RE 26.4% LATAM NORTH
Slide 17: Non Life: Key figures
02 Financial Overview Non Life: Key figures Result of Non-Life business Combined ratio Premiums 9M 2017 Δ% 9M 2017 Δ 9M 2017 Δ% IBERIA 335.3 0.4% 94.0% 1.2 p.p 3,692 3.0% LATAM 253.5 -14.4% 96.2% -0.6 p.p 4,615 16.3% BRAZIL 182.1 -19.2% 94.6% -0.0 p.p 2,323 9.6% LATAM NORTH 22.5 25.2% 98.9% -3.9 p.p
Slide 18: Non Life: Key highlights
02 Financial Overview Non Life: Key highlights IBERIA NORTH AMERICA › Motor: › Premiums: positive trends in Massachusetts (≈+5% in USD), › Premiums: notable growth in Retail Motor (+3.8%), with the mainly in Motor, mitigating the fall in other states (≈-8% in USD), average premium growing in line wi
Slide 19: Life: Key figures
02 Financial Overview Life: Key figures IBERIA › Strong premium volumes in bancassurance, thanks to successful launch of new savings product and sales campaigns, especially unit-linked Result of Life business Premiums › Higher realized gains, including the gain from the sale agreement of UNIÓN DUERO
Slide 20: Diversified portfolio benefitting from high historic yields
02 Financial Overview Diversified portfolio benefitting from high historic yields Investment portfolio (bn€) – Breakdown by asset class Portfolio yield and duration 1 € 49.4 bn Market Accounting Market Duration Value Yield Yield Other Investments (bn€) (9.9%) 4.9 Non Life Cash (3.1%) 1.5 12.31.2016
Slide 21: High quality capital base with strong credit metrics and financial flexibility
02 Financial Overview High quality capital base with strong credit metrics and financial flexibility Capital structure Change in shareholders’ equity (mn€) Bank Subordinated financing debt Shareholders’ equity – 12.31.16 9,127 6% 5% Δ Financial Assets Available for Sale & others -237 Senior debt 7%
Slide 22: Stable solvency position despite market volatility
02 Financial Overview Stable solvency position despite market volatility Solvency II ratio Change in Eligible Own Funds (EOF)/ Solvency II ratio Eligible Own Solvency Funds II ratio 12.31.2016 9,616 209.8% 197.2% 209.8% 205.6% 9,616 ∆ IFRS equity -580 -12.7 p.p. 9,420 8,502 ∆ Intangible assets 313 6
Slide 23: Terminology
Terminology 03 Backup Income Top line figure which includes premiums, financial income, and income from non-insurance entities and other income Combined ratio – Non Life Expense ratio + Loss ratio Expense ratio – Non Life (Operating expenses, net of reinsurance – other technical revenue + other tech
Slide 24: 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