Mapfre Sa · BME:MAP
Mapfre Sa — SG Conference "The Premium Review" 2007
26 slides from Mapfre Sa's conference presentation, Dec 5, 2007
Slide 1: SG Conference "The Premium Review"
Luigi Lubelli Finance Director SG Conference "The Premium Review" Paris – Palais Brongniart 5th December 2007 Nº 2007 - 34
Slide 2: Agenda
A snapshot of MAPFRE An overview of the acquisition of Commerce Brief summary of 9 months 2007 results 2 Nº 2007 - 34
Slide 3: MAPFRE at a glance
MAPFRE at a glance MAPFRE is an independent Spanish group which carries out activities in the fields of insurance, reinsurance and services primarily in Spain, Europe and the Americas. It has a direct presence in 40 countries across various business lines, which has consistently provided increasing
Slide 4: Breakdown of premiums and profits by business line – 9M 07
Breakdown of premiums and profits by business line – 9M 07 Premiums(1) Profits(2) Life (Abroad) Life (Abroad) Other 5.0% Life (Spain) 1.4% 0.3% Reinsurance 10.4% 12.2% Reinsurance Non-Life (Spain) 12.1% 44.4% Life (Spain) 17.4% Non-Life Non-Life (Spain) (Abroad) 62.8% 12.9% Non-Life (Abroad) 20.9% €
Slide 5: Growth drivers
Growth drivers Top line: – Expansion of business in comparatively faster-growing and underpenetrated areas. – Integration and development of product portfolio in new acquisitions and JVs. – Enhanced cross-selling of retail Non-life products. – Expansion of the distribution network. Bottom line: – In
Slide 6: External growth
External growth MAPFRE has recently announced an agreement to acquire US insurer Commerce Group, Inc. (“Commerce”). Once completed, this will be the largest investment in the Group’s history. The acquisition of Commerce is in addition to a series of acquisitions, JVs and agreements announced over th
Slide 7: Cancellation of the planned joint venture with Cattolica
Cancellation of the planned joint venture with Cattolica MAPFRE and Cattolica will no longer set up the planned joint venture MAPFRE CATTOLICA AUTO, which has not received the mandatory authorisation from ISVAP (Italy’s insurance supervisor), due to the lack of agreement on the terms of shared manag
Slide 8: Organisational chart
Organisational chart MAPFRE S.A. 51% 88% MAPFRE - CAJA MADRID HOLDING MAPFRE RE MAPFRE VIDA MAPFRE MAPFRE MAPFRE MAPFRE 100% 100% 89% 88% MAPFRE INVERSIÓN 100% 100% MAPFRE SEGUROS AUTO- INMUEBLES AMÉRICA MAPFRE VIDA AMÉRICA PENSIONES GENERALES MÓVILES VIDA 100% MAPFRE ASISTENCIA 100% MAPFRE MAPFRE M
Slide 9: Agenda
A snapshot of MAPFRE An overview of the acquisition of Commerce Brief summary of 9 months 2007 results 9 Nº 2007 - 34
Slide 10: Profile of Commerce
Profile of Commerce Commerce began operating in 1971. Today it focuses on writing personal automobile insurance and other property and casualty lines, which it distributes primarily through independent agents Since 1990, it is the largest and most profitable personal auto writer in Massachusetts. It
Slide 11: Commerce: a strong business profile
Commerce: a strong business profile Leading position in motor insurance in Massachusetts. Licenses in 50 states. Large network of independent agents, strongly loyal to the company. Strategic relationship with numerous American Automobile Association (AAA) clubs. Quality operations and consistent und
Slide 12: Commerce: leading competitive position in Massachusetts
Commerce: leading competitive position in Massachusetts Personal Auto Homeowners Commercial Auto Rank % of market Rank % of market Rank % of market Commerce Group 1 31.5% 1 9.8% 2 12.7% Safety Group 2 11.2% 11 3.2% 3 11.0% Arbella Insurance Group 3 9.6% 7 5.2% 4 10.5% Liberty Mutual Insurance Compan
Slide 13: Commerce: strong underwriting track record
Commerce: strong underwriting track record 98.9% 98.7% 98.6% 99.1% 99.3% 96.9% 96.9% 96.3% 89.1% 87.3% 87.8% -14.4 -25.2 -39.9 -42.4 -35.3 -43.7 -61.4 -57.0 -61.4 -87.8 -83.8 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Additions to (reductions in) reserves for earlier losses ($ million) C
Slide 14: Commerce: strong profitability and cash generation
Commerce: strong profitability and cash generation Commerce has consistently recorded above-industry-average returns and substantial cash generation on the back of its recurring positive underwriting results and strong net financial income. 18.9% 17.9% 18.8% 16.6% 17.4% 16.6% 14.7% 13.7% 10.8% 9.8%
Slide 15: Commerce development within the MAPFRE Group
Commerce development within the MAPFRE Group Upon completion, MAPFRE would retain Commerce’s management team and together both groups would design a cautious growth strategy, which would initially focus on: – Business expansion in and outside of Massachusetts. – Design of dedicated products and serv
Slide 16: Financial impact: value creation for MAPFRE shareholders
Financial impact: value creation for MAPFRE shareholders MAPFRE is offering to acquire all shares of Commerce at a price of $36.70 each, paid entirely in cash, implying: – A total consideration of $2,207mn (€1,538mn). – Multiples of 13.1x 2008 expected earnings (First Call consensus) and 1.65x book
Slide 17: Agenda
A snapshot of MAPFRE An overview of the acquisition of Commerce Brief summary of 9 months 2007 results 17 Nº 2007 - 34
Slide 18: 9M 2007 results: continued strong performance
9M 2007 results: continued strong performance(1) Total operating revenues reached €11,371.9 million, an increase of 10.8%. Gross written and accepted premiums amounted to €9,367.7 million, an 11.8% rise. Funds under management in Life and Savings products amounted to €23,265.5 million, representing
Slide 19: Summarised breakdown of results
Summarised breakdown of results Var.% (1) NON-LIFE INSURANCE AND REINSURANCE 9M 2007 9M 2006 07/06 Gross written and accepted premiums 7,058.8 6,685.0 5.6% Technical Result 399.9 315.1 26.9% Net fin'l. income and other non-technical income and expenses 387.2 395.8 -2.2% Technical-financial result of
Slide 20: Drivers of 2007 results to 30.09.2007
Drivers of 2007 results to 30.09.2007 Gross written and accepted premiums grew 11.8% to €9,367.7 million, reflecting: – Spain Non-life (+3.4%): virtual stability in Motor (-0.7%) and growth in Non-Motor lines (+6.5%). – Spain Life: strong 36.2% increase, coming primarily from the Life – Savings busi
Slide 21: Sustained improvement in quarterly combined ratios
Sustained improvement in quarterly combined ratios 96.7% 95.6% 94.7% 94.0% 93.9% 93.0% 92.9% 92.5% 31.12.2005 31.03.2006 30.06.2006 30.09.2006 31.12.2006 31.03.2007 30.06.2007 30.09.2007 Brief summary of 9 months 2007 results 21 Nº 2007 - 34
Slide 22: Growing quarterly EPS
Growing quarterly EPS +10.6% 22.2 20.1 +8.8% +14.1% +8.7% 6.8 7.4 7.3 6.9 7.5 6.4 Q1 Q2 Q3 Cumulative 2006 2007 Euro Cents Brief summary of 9 months 2007 results 22 Nº 2007 - 34
Slide 23: Interim dividend
Interim dividend The Board of Directors has resolved to pay, from 8th November 2007 onwards, an interim dividend of €0.06 gross per share, against the results of fiscal year 2007. Therefore, the total dividends to be paid in the year will amount to €0.11 gross per share, representing an increase of
Slide 24: Thank you!
Thank you! Luigi Lubelli Finance Director SG Conference "The Premium Review" Paris – Palais Brongniart 5th December 2007 Nº 2007 - 34
Slide 25: Investor Relations Department
Investor Relations Department Luigi Lubelli Finance Director +34-91-581-6071 Jesús Amadori Carrillo +34-91-581-2086 Alberto Fernández-Sanguino +34-91-581-2255 Beatriz Izard Pereda +34-91-581-2061 Antonio Triguero Sánchez +34-91-581-5211 Marisa Godino Alvarez Assistant +34-91-581-2985 MAPFRE S.A. Inv
Slide 26: 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