Mapfre Sa · BME:MAP
Mapfre Sa — Q1 2013 Earnings Presentation
58 slides from Mapfre Sa's earnings presentation, May 3, 2013
Slide 1: First quarter results 2013
First quarter results 2013 Presentation for investors and analysts 3rd May 2013
Slide 2: Contents
Contents 1 Key highlights 2 Consolidated financial information 3 Business development 4 Appendix 5 Financial supplement 6 Schedule and contacts 2
Slide 3: Key highlights
1 Key highlights A start to the year marked by the strength of the balance sheet and the benefits of diversification in an environment of economic slowdown Revenues 6,941.8 1.6% Premiums 5,903.8 0.2% Managed savings(1) 33,063.4 9.6% Non-life combined ratio 95.1% -0.5 p.p. ROE 8.7% -4.9 p.p. Sharehol
Slide 4: Highlights of the results
1 Key highlights Highlights of the results Equity grew by €355 million in the quarter, as a result of: The benefits of geographical diversification, which offset the impact on results of the depreciation of the Brazilian Real and the decline in demand in Spain The stability of the Non-Life underwrit
Slide 5: Development of recurring results
1 Key highlights Development of recurring results 3M 2012 3M 2013 % REPORTED ATTRIBUTABLE RESULT 271.4 264.3 -2.6% Investment portfolio: net realised capital gains -20.7 Greek fixed income 41.5 Gain from non-recurring exchange rate differences -13.2 Capital gain from the creation of SOLUNION -9.0 Re
Slide 6: The final dividend will be fully paid in cash on 28th June
1 Key highlights The final dividend will be fully paid in cash on 28th June On 9th March, the AGM approved the payment of a final dividend against the 2012 results of €0.07 gross per share 2012 Final dividend Thus, the outlay against the 2012 results amounts to €338.8 million The Board has res
Slide 7: A diversified investment portfolio, aligned with the business
1 Key highlights A diversified investment portfolio, aligned with the business Breakdown by type of asset Fixed income - sovereign Cash Other Spain 9,911.8 52.9% 780.1 (1.9%) 3,470.6 (8.5%) Brazil 2,749.6 14.7% Italy 1,127.7 6.0% Mutual funds USA 822.5 4.4% 808.6 (2.0%) Portugal 477.8 2.5% Sovereign
Slide 8: Consolidated financial information
1 Key highlights 2 Consolidated financial information 3 Business development 4 Appendix 5 Financial supplement 6 Schedule and contacts 8
Slide 9: 2013 Operational Structure
2 Consolidated financial information 2013 Operational Structure MAPFRE S.A. SPAIN & PORTUGAL INSURANCE INTERNATIONAL INSURANCE GLOBAL BUSINESSES MAPFRE FAMILIAR MAPFRE AMÉRICA MAPFRE RE MAPFRE MAPFRE MAPFRE VIDA INTERNACIONAL ASISTENCIA MAPFRE EMPRESAS MAPFRE GLOBAL RISKS MAPFRE SEGUROS GERAIS 9
Slide 10: The international business continues to drive the Group's growth
2 Consolidated financial information The international business continues to drive the Group’s growth Premiums(1) Contribution to consolidated results Spain 35% Abroad 65% Spain 46% Abroad 54% Segment EUR M % Reinsurance Non-Life Spain 84.9 31.6% 875.4 (13.5%) Non-Life Abroad 88.0 32.7% Non-Life Abr
Slide 11: Information by business areas
2 Consolidated financial information Information by business areas Contribution to premiums(1) Contribution to insurance results (2) (2) 3M 2012 3M 2013 3M 2012 3M 2013 Business area % % EUR M Business area % % EUR M SPAIN & PORTUGAL SPAIN & PORTUGAL 38.2% 35.3% 2,286.9 55.1% 46.4% 124.9 INSURANCE I
Slide 12: Development of Non-Life insurance results
2 Consolidated financial information Development of Non-Life insurance results Non-Life business – Main business areas Premiums Underwriting result Combined ratio (1) Business area 3M 2012 3M 2013(2) % 3M 2012 3M 2013(2) % 3M 2012 3M 2013(2) SPAIN & PORTUGAL INSURANCE 1,623.3 1,594.1 -1.8% 131.0 90.
Slide 13: Development of Non-Life insurance results
2 Consolidated financial information Development of Non-Life insurance results Non-Life Account Key points 3M 2012 3M 2013 % The development of premiums reflects mainly: Written and accepted – the growth of the international business 4,386.4 4,464.7 1.8% – the lower business volume in Spain premiu
Slide 14: Development of Life Assurance results
2 Consolidated financial information Development of Life Assurance results Life business – Main business areas Underwriting and financial Premiums result Business area 3M 2012 3M 2013(1) % 3M 2012 3M 2013(1) % SPAIN & PORTUGAL INSURANCE 764.0 692.8 -9.3% 67.4 66.8 -0.9% MAPFRE BRASIL 436.0 433.8 -0.
Slide 15: Development of Life Assurance results
2 Consolidated financial information Development of Life Assurance results Life Account Key points 3M 2012 3M 2013 % Spain: decrease in the issuance of Life-Savings insurance due to differences in the schedule of campaigns in the agents’ network Gross written and accepted 1,507.6 1,439.1 -4.5% O
Slide 16: Development of results from Other Business Activities
2 Consolidated financial information Development of results from Other Business Activities Other Business Activities(1) Key points 3M 2012 3M 2013 % Reflects: — the reclassification of the fund management business of MAPFRE BRASIL carried out in the Operating revenues 109.9 142.2 29.4% second quar
Slide 17: Consolidated result
2 Consolidated financial information Consolidated result 3M 2012 3M 2013 % Result on restatement of financial accounts -1.7 -2.6 52.9% Result before tax and minority interests 498.2 458.7 -7.9% Taxes -144.8 -112.6 -22.2% Result after tax 353.4 346.1 -2.1% Result after tax from discontinued operation
Slide 18: Balance sheet – key highlights
2 Consolidated financial information Balance sheet – key highlights 31.3.12 31.12.12 31.3.13 Goodwill 2,271.1 2,146.2 2,185.6 The increase in intangible assets (with respect to December 2012) reflects mainly the appreciation of Other intangible assets 2,340.0 2,264.2 2,330.8 the US Dollar and the
Slide 19: Equity grew by €355 million in 3M 2013
2 Consolidated financial information Equity grew by €355 million in 3M 2013 Statement of changes in equity Key points Equity Minority TOTAL TOTAL interests 3M 2013 3M 2012 BALANCE AS AT PRIOR YEAR END 7,810.5 2,325.8 10,136.3 9,726.6 Recovery in the market value of investments Additions and deduct
Slide 20: Business development
1 Key highlights 2 Consolidated financial information 3 Business development 4 Appendix 5 Financial supplement 6 Schedule and contacts 20
Slide 21: Spain & Portugal Insurance Division: Key highlights
3 Business development Spain & Portugal Insurance Division Key highlights (1) 3M 2012 3M 2013(1) % NON-LIFE BUSINESS 3M 2012 3M 2013 % Written and accepted premiums 1,623.3 1,594.1 -1.8% Written and accepted Underwriting result 131.0 90.0 -31.3% 2,387.3 2,286.9 -4.2% premiums Underwriting and financ
Slide 22: Spain & Portugal Insurance Division: highlights of the results in Spain
3 Business development Spain & Portugal Insurance Division: highlights of the results in Spain Premiums The variation in premiums is the result of: evolution the deterioration of the market environment, characterised by a decline in the demand of Non-Life insurance, which affected in particular th
Slide 23: Spain & Portugal Insurance Division: Non-Life
3 Business development Spain & Portugal Insurance Division Non-Life Premiums in Spain Combined ratios(1) in Spain 3M 2012 3M 2013 Combined ratio 94.1% 94.6% MOTOR 511.2 -9,7% MOTOR Loss ratio 77.2% 78.6% Expense ratio 16.9% 16.0% Combined ratio 100.6% 107.0% HEALTH 399.5 -2,6% HEALTH Loss ratio 82.2
Slide 24: Life business in Spain: activity indicators
3 Business development Spain & Portugal Insurance Division Life business in Spain: activity indicators GROSS WRITTEN AND ACCEPTED PREMIUMS 3M 2012 3M 2013 % CHANGE IN FUNDS UNDER MANAGEMENT (1) 3M 2012 3M 2013 (2) Regular premiums 137.6 120.3 -12.6% IFRS technical reserves 302.6 339.2 Single premium
Slide 25: Spain & Portugal Insurance Division: MAPFRE PORTUGAL
3 Business development Spain & Portugal Insurance Division: MAPFRE PORTUGAL Key highlights MAPFRE PORTUGAL – by business lines 3M 2012 3M 2013 % Written and accepted Other 35.5 30.9 -13.0% premiums 3.4 (10.8%) Motor Underwriting and financial Home 12.2 (39.4%) 1.8 0.6 -66.7% 1.6 (5.1%) result Other
Slide 26: International Insurance Division: Key highlights
3 Business development International Insurance Division Key highlights MAPFRE AMÉRICA 3M 2012 3M 2013* % 3M 2012 3M 2013* % Written and accepted Gross written and accepted premiums 2,093.2 2,166.2 3.5% 2,652.7 2,829.1 6.6% premiums Underwriting and financial result 138.1 169.9 23.0% Other business a
Slide 27: MAPFRE AMÉRICA: Premiums and results by countries
3 Business development International Insurance Division: MAPFRE AMÉRICA Premiums and results by countries PREMIUMS RESULTS (1) Local Local Currency Currency COUNTRY 3M 2012 3M 2013* % % 3M 2012 3M 2013* % % BRAZIL 1,142.0 1,203.9 5.4% 18.0% 105.2 113.6 8.0% 20.8% M EXICO 172.0 206.6 20.1% 16.4% 8.6
Slide 28: MAPFRE AMÉRICA: Highlights of the Unit
3 Business development International Insurance Division: MAPFRE AMÉRICA Significant improvement in the combined ratio due to: Highlights – continued improvements both in the loss ratio and in the expense ratio – the sale of the MAPFRE ART and MAPFRE SALUD businesses (Argentina), which contributed
Slide 29: MAPFRE INTERNACIONAL: Premiums and results by countries
3 Business development International Insurance Division: MAPFRE INTERNACIONAL Premiums and results by countries PREMIUMS RESULTS (1) Local Local Currency Currency COUNTRY 3M 2012 3M 2013* % % 3M 2012 3M 2013* % % USA 373.7 385.8 3.2% 2.2% 28.1 16.5 -41.3% -41.9% TURKEY 107.2 165.9 54.8% 55.7% 4.3 9.
Slide 30: MAPFRE INTERNACIONAL: Highlights of the Unit
3 Business development International Insurance Division: MAPFRE INTERNACIONAL Highlights Transfer of the Portuguese businesses to the Spain & Portugal Insurance Division and integration of of the Unit the operations of PUERTO RICO, which were previously included in MAPFRE AMÉRICA Highlights USA
Slide 31: Global Businesses Division: Key highlights
3 Business development Global Businesses Division Key highlights 3M 2012 3M 2013 % MAPFRE RE 875.4 18.6% Premiums & operating 1,245.9 1,403.4 12.6% MAPFRE GLOBAL RISKS 253.2 -13.8% income MAPFRE ASISTENCIA 274.8 28.5% Underwriting and financial 65.7 86.9 32.3% result Other non-technical result -0.4
Slide 32: Global Businesses Division: MAPFRE RE
3 Business development Global Businesses Division: MAPFRE RE Key figures Key highlights 3M 2012 3M 2013 % Increase in Non-Life premiums as a result of the Gross written and accepted 738.4 875.4 18.6% formalisation of new reinsurance operations with premiums Group companies. Excluding this, the fig
Slide 33: Global Businesses Division: MAPFRE GLOBAL RISKS
3 Business development Global Businesses Division: MAPFRE GLOBAL RISKS Key figures Key highlights Reflects mainly the impact of: 3M 2012 3M 2013 % – the change in the accrual of a large contract – the consolidation of SOLUNION by the equity Gross written and accepted method 293.6 253.2 -13.8% prem
Slide 34: Global Businesses Division: MAPFRE ASISTENCIA
3 Business development Global Businesses Division: MAPFRE ASISTENCIA Key figures Key highlights 3M 2012 3M 2013 % Organic growth in Europe and Asia USA: positive impact of a Roadside Assistance Operating income 213.9 274.8 28.5% contract as well as of the acquisition of Century, both signed in t
Slide 35: Appendix
1 Key highlights 2 Consolidated financial information 3 Business development 4 Appendix 5 Financial supplement 6 Schedule and contacts 35
Slide 36: Consolidated income statement
4 Appendix Consolidated income statement 3M 2012 3M 2013 % NON-LIFE INSURANCE AND REINSURANCE Gross written and accepted premiums 4,386.4 4,464.7 1.8% Premiums earned, net of ceded and retroceded reinsurance 3,286.9 3,208.4 -2.4% Net claims incurred and variation in other technical provisions -2,219
Slide 37: Profit breakdown by units and companies
4 Appendix Profit breakdown by units and companies Contribution to consolidated result Net Minority 3M 2013 3M 2012 Result interests € Million % € Million % (1) SPAIN & PORTUGAL INSURANCE 124.9 124.9 136.5 MAPFRE VIDA 39.5 39.5 14.9% 40.6 15.0% MAPFRE FAMILIAR 52.3 52.3 19.8% 60.5 22.3% MAPFRE EMPRE
Slide 38: Breakdown of recurring results by units and companies
4 Appendix Breakdown of recurring results by units and companies Contribution to Non-recurring Recurring attributable consolidated result results result 3M12 3M13 % 3M12 3M13 3M12 3M13 % (1) SPAIN AND PORTUGAL INSURANCE 136.5 124.9 -8.5% -18.6 0.0 155.1 124.9 -19.5% MAPFRE VIDA 40.6 39.5 -2.7% 1.4 0
Slide 39: Expense and loss ratios
4 Appendix Expense and loss ratios RATIOS (1) (2) (3) Expense ratio Loss ratio Combined ratio 3M 2012 3M 2013 3M 2012 3M 2013 3M 2012 3M 2013 MAPFRE S.A. consolidated 28.1% 27.2% 67.5% 67.9% 95.6% 95.1% (4) SPAIN & PORTUGAL INSURANCE 19.5% 19.1% 68.8% 71.8% 88.3% 90.9% MAPFRE FAMILIAR 20.0% 18.7% 70
Slide 40: Net financial income: selected information
4 Appendix Net financial income: selected information Breakdown of net financial income (before taxes) 3M 2012 3M 2013 % Net financial income, Non-life 211.0 199.2 -5.6% - of which realised capital gains and impairments 24.2 51.3 111.8% - of which foreign exchange gains/(losses) -3.0 27.9 --- Net fi
Slide 41: Net financial income: selected information (contd.)
4 Appendix Net financial income: selected information (contd.) Realisation gains, impairments and other financial results Exchange of Greek Other financial Impact on pre-tax Realisation gains (1) bonds results result 3M 2012 3M 2013 3M 2012 3M 2013 3M 2012 3M 2013 3M 2012 3M 2013 MAPFRE FAMILIAR 12.
Slide 42: Financial supplement
1 Key highlights 2 Consolidated financial information 3 Business development 4 Appendix 5 Financial supplement 6 Schedule and contacts 42
Slide 43: Operating companies: Key figures MAPFRE FAMILIAR
5 Financial supplement Operating companies: Key figures MAPFRE FAMILIAR MAPFRE FAMILIAR – by lines 3M 2012 3M 2013 % Motor 3M 2012 3M 2013 % Gross written and accepted premiums 1,406.8 1,349.7 -4.1% Gross written and accepted premiums 565.9 511.2 -9.7% Net premiums earned 982.3 838.9 -14.6% Net prem
Slide 44: MAPFRE FAMILIAR – by lines (contd.)
5 Financial supplement Operating companies: Key figures MAPFRE FAMILIAR – by lines (contd.) Health 3M 2012 3M 2013 % Burial 3M 2012 3M 2013 % Gross written and accepted premiums Gross written and accepted premiums 410.3 399.5 -2.6% 219.5 224.7 2.4% Net premiums earned 100.1 91.3 -8.8% Net premiums e
Slide 45: Operating companies: Key figures MAPFRE EMPRESAS
5 Financial supplement Operating companies: Key figures MAPFRE EMPRESAS 3M 2012 3M 2013 % Gross written and accepted premiums 217.2 220.6 1.6% Net premiums earned 135.9 134.2 -1.3% Underwriting result 41.0 37.6 -8.3% Net financial income 9.6 9.2 -4.2% Other business activities -0.1 0.1 --- Other non
Slide 46: Operating companies: Key figures MAPFRE VIDA
5 Financial supplement Operating companies: Key figures MAPFRE VIDA 3M 2012 3M 2013 % Breakdown of premiums 3M 2012 3M 2013 % Technical Reserves excluding Regular Premiums 137.6 120.3 -12.6% shadow accounting 18,262.4 18,364.6 0.6% - Agents' and other channels 85.1 77.3 -9.2% Shadow accounting adjus
Slide 47: Operating companies: Key figures MAPFRE VIDA
5 Financial supplement Operating companies: Key figures MAPFRE VIDA Funds under management 3M 2012 3M 2013 % Change in funds under management(1) 3M 2012 3M 2013 Regular premiums insurance 4,722.0 4,618.6 -2.2% (2) IFRS technical reserves 302.6 339.2 - Agents' channel and others 3,248.1 3,201.2 -1.4%
Slide 48: Operating companies: Key figures MAPFRE PORTUGAL
5 Financial supplement Operating companies: Key figures MAPFRE PORTUGAL MAPFRE PORTUGAL– by lines 3M 2012 3M 2013 % Non-Life 3M 2012 3M 2013 % Gross written and accepted premiums 26.6 24.4 -8.3% Gross written and accepted premiums 35.5 30.9 -13.0% Net premiums earned 26.4 18.4 -30.3% Net premiums ea
Slide 49: Operating companies: Key figures MAPFRE AMÉRICA
5 Financial supplement Operating companies: Key figures MAPFRE AMÉRICA MAPFRE AMÉRICA – by lines (2013 operational structure) (2013 operational structure) 3M 2012* 3M 2013* % Non-Life 3M 2012* 3M 2013* % Gross written and accepted premiums 2,020.7 2,166.2 7.2% Gross written and accepted premiums 1,4
Slide 50: Operating companies: Key figures MAPFRE BRASIL
5 Financial supplement Operating companies: Key figures MAPFRE BRASIL MAPFRE BRASIL – by lines 3M 2012 3M 2013 % Non-Life 3M 2012 3M 2013 % Gross written and accepted premiums 706.0 770.1 9.1% Gross written and accepted premiums 1,142.0 1,203.9 5.4% Net premiums earned 602.7 616.1 2.2% Net premiums
Slide 51: Operating companies: Key figures MAPFRE INTERNACIONAL
5 Financial supplement Operating companies: Key figures MAPFRE INTERNACIONAL MAPFRE INTERNACIONAL – by lines (2013 operational structure) (2013 operational structure) 3M 2012* 3M 2013* % Non-Life 3M 2012* 3M 2013* % Gross written and accepted premiums 596.5 662.9 11.1% Gross written and accepted pre
Slide 52: Operating companies: Key figures MAPFRE USA
5 Financial supplement Operating companies: Key figures MAPFRE USA 3M 2012 3M 2013 % Gross written and accepted premiums 373.7 385.8 3.2% Net premiums earned 344.6 332.9 -3.4% Underwriting result -2.1 -13.4 --- Net financial income 30.5 31.2 2.3% Other business activities 0.0 0.0 --- Other non-techn
Slide 53: Operating companies: Key figures MAPFRE RE
5 Financial supplement Operating companies: Key figures MAPFRE RE MAPFRE RE – by lines 3M 2012 3M 2013 % Non-Life 3M 2012 3M 2013 % Gross written and accepted premiums 738.4 875.4 18.6% Gross written and accepted premiums 608.0 775.2 27.5% Net premiums earned 500.9 520.4 3.9% Net premiums earned 409
Slide 54: Operating companies: Key figures MAPFRE ASISTENCIA, MAPFRE GLOBAL RISKS
5 Financial supplement Operating companies: Key figures MAPFRE GLOBAL RISKS MAPFRE ASISTENCIA 3M 2012 3M 2013 % 3M 2012 3M 2013 % Gross written and accepted premiums 293.6 253.2 -13.8% Operating income 213.9 274.8 28.5% - Global Risks 257.0 226.8 -11.8% - Gross written and accepted premiums 173.5 23
Slide 55: Schedule and contacts
1 Key highlights 2 Consolidated financial information 3 Business development 4 Appendix 5 Financial supplement 6 Schedule and contacts 55
Slide 56: 2013 Provisional Schedule
6 Schedule and contacts 2013 Provisional Schedule Release First Quarter 2013 Results 3-May-13 Madrid Conference Call – First Quarter 2013 Results 7-May-13 London Presentation to analyst – First Quarter 2013 Results Release First Half 2013 Results 25-July-13 Madrid Conference Call – First H
Slide 57: Investor Relations Department
6 Schedule and contacts 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
Slide 58: 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