Mapfre Sa · BME:MAP
Mapfre Sa — Corporación Mapfre — H1 2002 Earnings Presentation
53 slides from Mapfre Sa's earnings presentation, Jul 23, 2002
Slide 1: First half 2002 results
First half 2002 results Madrid, 23 July 2002
Slide 2: Index
Index Section I Key facts Section II Analysis of results Appendix Contacts 2
Slide 3: Section I Key facts
Section I Key facts
Slide 4: First half 2002
First half 2002 l Increase in Non-life premiums 14.9% l Increase in consolidated funds under management 11.9% l Increase in net result 13.9% l Increase in subsidiaries’ gross result 38.1% l Increase in Mapfre America result 65.3% l Change in shareholders’ equity, including negative translation resul
Slide 5: Corporación Mapfre: Key figures
Corporación Mapfre: Key figures 1H '00 1H '01 1H '02 % 02/01 Non-Life premiums 1,238.3 1,619.6 1,860.7 14.9% Life premiums 345.1 972.4 1,021.2 5.0% Net income, group share 49.4 53.9 61.4 13.9% Total assets 10,287.7 12,625.9 14,530.6 15.1% Funds under management (1) 11,494.3 13,645.0 15,272.9 11.9% S
Slide 6: Section II Analysis of results
Section II Analysis of results
Slide 7: Corporación Mapfre: Consolidated profit and loss account
Corporación Mapfre: Consolidated profit and loss account 1H '00 1H '01 1H '02 % 02/01 N/L Gross premium written 1,238.3 1,619.6 1,860.7 14.9% N/L Net premium written 1,061.4 1,415.5 1,566.8 10.7% Net Premiums Earned 944.2 1,205.1 1,301.6 8.0% Net Claims Incurred -677.3 -849.8 -884.6 4.1% Variation,
Slide 8: Corporación Mapfre: Consolidated shareholders' equity
Corporación Mapfre: Consolidated shareholders’ equity l Consolidated shareholders’ equity as at 30 June Devaluation impact 2002 amounted to EUR 1,079.7 MM, a 7.1% decrease over 31 December 2001 MAPFRE ARGENTINA 46.6 LA SEGURIDAD (Venezuela) 31.9 l Such decrease stems from a EUR 137.3 MM VERA CRUZ SE
Slide 9: Corporación Mapfre: Net result by business area
Corporación Mapfre: Net result by business area 1H '00 1H '01 1H '02 % 02/01 Group companies operating primarily in Spain Direct Insurance 65.0 72.2 96.5 33.7% Funds under management (1) - Mapfre Inversión 9.7 8.5 9.3 9.4% - Gesmadrid, Caja Madrid Pensiones, Caja Madrid Bolsa --- 2.9 2.5 -13.8% Real
Slide 10: Corporación Mapfre: Result by business unit
Corporación Mapfre: Result by business unit (1) 1H '00 1H '01 1H '02 % 02/01 MAPFRE VIDA (Consolidated) 45.2 46.4 51.4 10.8% MAPFRE INVERSION 15.2 13.3 14.5 8.7% MAPFRE SEGUROS GENERALES 26.9 27.4 45.0 64.2% MAPFRE CAJA SALUD --- 4.2 7.6 81.0% MAPFRE CAUCION Y CREDITO 2.6 2.8 4.3 53.6% OTHER SUBSIDI
Slide 11: Corporación Mapfre: Net result by business unit
Corporación Mapfre: Net result by business unit 1H '00 1H '01 1H '02 % 02/01 MAPFRE CAJA MADRID HOLDING MAPFRE VIDA (Consolidated) 31.5 33.7 37.4 10.9% MAPFRE INVERSION 9.7 8.5 9.3 8.9% MAPFRE SEGUROS GENERALES 16.3 15.0 24.4 62.7% MAPFRE CAJA SALUD --- 2.3 4.3 87.0% MAPFRE CAUCION Y CREDITO 1.4 1.5
Slide 12: Corporación Mapfre: Result by business unit
Corporación Mapfre: Result by business unit (1) JUNE 2000 JUNE 2001 JUNE 2002 OTHER OTHER OTHER AMERICA 3% 4% 4% 9% AMERICA LIFE AMERICA 19% 25% 16% LIFE REINSURANCE 32% 4% LIFE 36% REINSURANCE 7% REINSURANCE ASSET MANAGEMENT 9% 10% GENERAL INSURANCE 31% ASSET MANAGEMENT GENERAL INSURANCE 13% ASSET
Slide 13: Corporacion Mapfre: Cash earnings
Corporacion Mapfre: Cash earnings 1H '00 1H '01 1H '02 02/01 % Net result, group share 49.4 53.9 61.4 13.9% Depreciation (1) 16.0 23.2 22.7 -2.2% Amortisation (1) 3.6 4.2 12.3 192.9% Cash earnings 69.0 81.3 96.4 18.6% (1) Amortisation and depreciation figures have not been adjusted for taxes and min
Slide 14: Mapfre Caja Madrid: First half 2002 figures
Mapfre Caja Madrid: First half 2002 figures PREMIUMS(1) RESULT (2) 1H '01 1H '02 % 02/01 1H '01 1H '02 % 02/01 MAPFRE VIDA 1,014.2 986.8 -2.7% 46.4 51.4 10.8% MAPFRE SEGUROS GENERALES 453.5 596.0 31.4% 27.4 45.0 64.2% MAPFRE CAJA SALUD 221.0 249.5 12.9% 4.2 7.6 81.0% MAPFRE CAUCION Y CREDITO 40.9 49
Slide 15: Mapfre Vida: Funds under management
Mapfre Vida: Funds under management(1) 11,401 20% CAGR 9,623 8,081 6,650 1H '99 1H '00 1H '01 1H '02 TECHNICAL RESERVES INVESTMENT AND PENSION FUNDS EQUITY (1) The equity and technical reserves of Caja Madrid Vida are included from June 2000 onwards Million euros 15
Slide 16: Mapfre Vida: Key figures
Mapfre Vida: Key figures l FUM increase by 18.8%, reaching EUR 11,0 bn, 1H '00 1H '01 1H '02 % 02/01 sustained by strong growth in technical reserves Technical reserves 5,246.5 6,576.6 8,348.1 26.9% and pension funds Investment funds 2,162.7 2,228.7 2,093.6 -6.1% Pension funds 385.0 482.3 588.0 21.9
Slide 17: Mapfre Vida: Premiums breakdown
Mapfre Vida: Premiums breakdown 1H '00 1H '01 1H '02 % 02/01 Regular premiums 255.6 240.7 247.9 3.0% - Insurance channel 237.7 220.8 226.4 2.5% - Bank channel 17.9 19.9 21.5 8.0% Single premiums 357.9 333.1 683.0 105.0% - Insurance channel 45.8 100.9 160.9 59.5% - Bank channel 312.1 232.2 522.1 124.
Slide 18: Mapfre Vida: Life premiums breakdown by customer
Mapfre Vida: Life premiums breakdown by customer(1) JUNE 2000 JUNE 2001 JUNE 2002 Group Group 11% Group 15% 13% Individual Individual Individual 89% 85% 87% (1) Excluding externalisations 18
Slide 19: Mapfre Vida: Embedded value
Mapfre Vida: Embedded value(1) 2000 2001 % 01/00 VIF(2) Life 361.4 388.9 7.6% VIF(2) Investment Funds 117.1 108.2 -7.6% VIF(2) Pension Funds 33.7 53.9 60.1% VIF(2) Total 512.2 551.0 7.6% Adjusted net asset value 317.9 343.2 8.0% Embedded Value (3) 830.0 894.2 7.7% (1) Embedded value calculated by Co
Slide 20: Sensitivity to the discount rate
Sensitivity to the discount rate 7.5% 8.5% 9.5% 2001 Embedded Value 951.7 894.2 843.2 Change 6.4% -- -5.7% 20
Slide 21: Embedded Value Earnings
Embedded Value Earnings Value added in 2001 / 2000 Embedded value = 13,1% 108.9 67.6 64.2 46.3 10.1 2.8 -4.9 -10.3 -47.5 Changes in the Changes in Expected return Value added by Experience Value added in Dividends paid Capital Change in model assumptions new business variance from 2001 and other inc
Slide 22: Assumptions
Assumptions l Financial returns – Reinvestment rates: • Government bonds: 5.13% • Corporate bonds: 6.13% • Shares: 7.63% • Real estate: 7.63% • Cash: 4.13% – Existing assets: booked returns until maturity l Maintenance expenses – Based on internal analyses – Expressed in euros per policy – Indexed t
Slide 23: Glossary
Glossary l An embedded value is an actuarial estimate of the economic value of the life, pensions and mutual fund business, excluding any value attributable to future new business l The embedded value is defined as the sum of shareholders’ net assets, considering assets at market value, and the valu
Slide 24: Mapfre Seguros Generales: Key figures
Mapfre Seguros Generales: Key figures 1H '00 1H '01 1H '02 % 01/00 l Strong 46.6% increase in premiums (31.4% Home Combined 64.7 91.8 117.4 27.9% applying the same consolidation perimeter, Burial 8.7 30.6 77.0 151.4% including Mapfre Finisterre) Accidents 27.9 37.4 49.6 32.6% Condominiums Combined 2
Slide 25: Mapfre Seguros Generales: Bank channel sales
Mapfre Seguros Generales: Bank channel sales Premiums % contribution to total premiums 1H' 01 1H' 02 02/01 % 1H '01 1H' 02 02/01 % 22.4 31.9 42.4% 4.8 5.4 12.5% Million euros 25
Slide 26: Seguros Generales: 2001 Spanish market rankings
Mapfre Seguros Generales: 2001 Spanish market rankings SECTOR RANKING ESTIMATED MARKET SHARE Home combined 1 15% Condominiums combined 1 19% Commercial 2 10% Personal accidents 1 13% Burial 3 17% Civil liability 1 Marine 3 10% Fire/Damages 4 Engineering 8 Overall General Insurance 1 12.5% Million eu
Slide 27: Mapfre Finisterre
Mapfre Finisterre l Burial insurance grows 6%. Sales are expected to 1H 01 1H 02 % 02/01 pick up in Autumn, on the back of the launch of a Written premiums 77.9 93.3 19.8% new product through both channels Pretax results -0.4 7.3 --- Equity 38.3 48.4 26.4% l Premiums growth is expected to slow down
Slide 28: Mapfre Caja Salud
Mapfre Caja Salud 1H '00 1H '01 1H '02 % 02/01 l Premiums grow 12.9%, reflecting: – Excellent results in the campaign to acquire new Premiums written 160.2 221.0 249.5 12.9% - Caja Salud 94.9 124.6 96.2 -22.8% policies - Mapfre Vida 59.7 71.9 126.1 75.3% – The integration of the Health insurance bus
Slide 29: Mapfre Caución y Crédito
Mapfre Caución y Crédito 1H '00 1H '01 1H '02 % 02/01 l Premiums and policies continue growing at rates Premiums written 32.4 40.9 49.5 21.0% close to 20%. The market share in Spain has Pretax results 2.6 2.8 4.3 53.6% reached 16% l Once again, results grow faster than premiums, Number of policies -
Slide 30: Mapfre América: Results
Mapfre América: Results l Slight decrease in premiums, due to the 1H '00 1H '01 1H '02 % 02/01 devaluations in Argentina and Brazil and the Premiums Written 633.8 720.7 711.5 -1.3% appreciation of the euro against the dollar Pretax Results 8.1 19.6 32.4 65.3% Equity 471.4 612.5 534.0 -12.8% l The lo
Slide 31: Mapfre América: Premiums and income by country
Mapfre América: Premiums and income by country PREMIUMS RESULTS (1) COMPANY 1H '00 1H '01 1H '02 % 02/01 1H '00 1H '01 1H '02 % 02/01 MAPFRE ARGENTINA 93.8 101.2 36.9 -63.6% 0.9 3.0 1.6 -46.5% VERA CRUZ (BRAZIL) 133.2 151.5 136.0 -10.2% 1.6 1.2 2.3 92.6% MAPFRE CHILE SEGUROS 25.0 27.5 40.2 46.2% 0.6
Slide 32: Management ratios for the main subsidiaries of Mapfre América
Management ratios for the main subsidiaries of Mapfre América Loss ratio Expense ratio 1H '01 1H '02 % 02/01 1H '01 1H '02 % 02/01 Aconcagua 64.8% 77.5% 12.8% 40.1% 41.7% 1.6% Centroamericana 68.3% 64.1% -4.1% 34.8% 33.8% -1.0% Mapfre USA 73.1% 68.6% -4.5% 33.0% 40.5% 7.6% Peru 76.9% 82.6% 5.7% 37.2
Slide 33: Mapfre América: First half 2002 in South America
Mapfre América: First half 2002 in South America l Argentina: Premium volumes remain stable in local currency (-63.6% in euros). Claims increase, due to a higher frequency in theft and damages to small businesses. Premiums issuance has changed from annual to four-monthly. The subsidiary has a positi
Slide 34: Mapfre América: First Half 2002 in South America (continued)
Mapfre América: First Half 2002 in South America (continued) l Peru: Premium volumes in local currency increase 6.8% (7.4% in euros). The company is still affected by: a high loss ratio in Motor insurance, a branch of business characterised by a high net retention; a small General Insurance portfoli
Slide 35: Mapfre América: First half 2002 in North and Central America
Mapfre América: First half 2002 in North and Central America l El Salvador: Premiums grow 17.6% in local currency (16.0% in euros). Claims and expenses remain stable. Financial income remains low, due to dollarisation. The result in euros grows 65.0% l México: A generalised increase in tariffs is be
Slide 36: Mapfre América: Buyout of minority stakes in Seguros Tepeyac
Mapfre América: Buyout of minority stakes in Seguros Tepeyac l As it was announced in September 2001, Mapfre América has acquired an additional stake in Seguros Tepeyac (Mexico), raising its controlling shareholding in this subsidiary to 99.9% l Mapfre América finances this acquisition through a EUR
Slide 37: Mapfre Re
Mapfre Re l Premiums growth is moderated by the devaluation 1H '00 1H '01 1H '02 % 02/01 of the Argentine peso, the cancellation of Gross Premiums written 309.5 327.8 365.0 11.3% unprofitable business in 2001 and the appreciation - of which Life 7.6 13.2 15.5 17.6% of euro against other currencies E
Slide 38: Mapfre Re: 2001 combined ratio comparison
Mapfre Re: 2001 combined ratio comparison MAPFRE RE INDUSTRY(1) EXCLUDING WTC 106.7% 117.8% WTC (2) 5.9% 16.8% TOTAL 112.6% 134.6% (1) Estimate based on company reports (2) Includes reinstatement costs 38
Slide 39: Mapfre Re: Evolution of the combined ratio
Mapfre Re: Evolution of the combined ratio 134.6% 118.0% 115.3% 116.0% 112.6% 108.5% 106.0% 106.8% 104.0% 102.0% 102.7% 101.9% 102.0% 99.6% 100% 1995 1996 1997 1998 1999 2000 2001 MAPFRE RE INDUSTRY(1) (1) Source: Fox-Pitt Kelton / AM Best except 2001 (estimated) 39
Slide 40: Mapfre Re: Effect of cancellations and prices on 2002 issuance
Mapfre Re: Effect of cancellations and prices on the year 2002 issuance Growth excl. non- recurring effects: 26% -3% 12% -13% 22% -11% 107% 100% Increase in rates: 29% 76% Total contracts Non-recurring Ordinary Contracts Increase in New business Devaluation in Estimated to be renewed cancellations c
Slide 41: Mapfre Asistencia
Mapfre Asistencia 1H '00 1H '01 1H '02 % 02/01 l Premiums decrease due to the devaluation of the Argentine peso and the appreciation of the euro Total Income 99.0 116.6 116.7 0.1% - Premiums 58.6 75.0 70.8 -5.6% l The implementation of the Profitability Increase - Other income 40.4 41.6 45.9 10.3% P
Slide 42: Appendix
Appendix @)
Slide 43: Corporación Mapfre: Consolidated quarterly results
Corporación Mapfre: Consolidated quarterly results NET RESULT BY QUARTER (million) QUARTERLY EPS 0.60 QUARTER 1999 2000 2001 2002 0.50 FIRST 18 23 26 29 SECOND 19 26 28 32 0.40 THIRD 23 28 17 -- 0.30 FOURTH 10 15 25 -- TOTAL 70 92 96 -- 0.20 0.10 0.00 QUARTERLY EPS FIRST SECOND THIRD FOURTH TOTAL QU
Slide 44: Corporación Mapfre: Expense and loss ratios
Corporación Mapfre: Expense and loss ratios GROSS GROSS COMBINED (1) (2) (3) EXPENSE RATIO(%) LOSS RATIO (%) RATIO (%) COMPANY 1H '01 1H '02 1H '01 1H '02 1H '01 1H '02 MAPFRE SEGUROS GENERALES 23.4 22.8 65.1 61.2 91.5 87.3 MAPFRE CAUCION Y CREDITO (4) 24.8 16.7 74.9 72.4 85.3 74.8 MAPFRE CAJA SALUD
Slide 45: Corporación Mapfre: Consolidated balance sheet
Corporación Mapfre: Consolidated balance sheet 1H '00 1H '01 1H '02 % 02/01 ASSETS Uncalled Share Capital 3.8 15.9 --- --- Fixed Assets 61.9 82.5 82.6 0.1% Investments 7,244.1 8,890.1 10,544.3 18.6% Consolidation goodwill 297.8 406.6 441.0 8.4% Investments on account of policy holders assuming risk
Slide 46: Corporación Mapfre: Consolidated investments breakdown
Corporación Mapfre: Consolidated investments breakdown 1H '00 1H '01 1H '02 100% FIXED-ASSETS 547.3 562.9 532.9 EQUITY 109.0 205.3 166.3 80% FIXED-INCOME SECURITIES 5,126.7 6,432.2 8,175.1 INVESTMENT FUNDS 514.9 577.3 577.1 OTHER INVESTMENTS 946.3 1,112.4 1,093.0 60% TOTAL INVERSIONES 7,244.1 8,890.
Slide 47: Corporación Mapfre: Funds under management
Corporación Mapfre: Funds under management(1) 15.273 13.645 11.494 8.178 1H '99 1H '00 1H '01 1H '02 Investment Funds Pension Funds Shareholders´ Equity Mathematical Reserves (Life) Other Technical Provisions Other Funds under Management (1) Figures do not include funds managed by Caja Madrid’s asse
Slide 48: Watson Wyatt certification letter
Watson Wyatt certification letter 48
Slide 49: Watson Wyatt certification letter (ctd.)
Watson Wyatt certification letter (ctd.) 49
Slide 50: Mapfre Seguros Generales: Premiums and claims by branch of business
Mapfre Seguros Generales: Premiums and claims by branch of business % on total SECTORS premiums % 02/01 Claims ratio HOME COMBINED 19.7% 17.4% 46.4% BURIAL 12.9% 1.3% 54.0% PERSONAL ACCIDENTS 8.3% 21.0% 36.2% CONDOMINIUMS COMBINED 6.5% 18.7% 47.8% COMMERCIAL 6.2% 70.4% 49.5% SMALL BUSINESS 2.9% -27.
Slide 51: Contacts
Contacts
Slide 52: Investor Relations department
Investor Relations department Luigi Lubelli Finance Director +34-91-581-6071 Jesús Rodríguez Castejón +34-91-581-1096 Antonio Triguero Sánchez +34-91-581-5211 Natalia Rodríguez Sánchez +34-91-581-2458 Marisa Godino Alvarez Secretary +34-91-581-2985 Corporación Mapfre, S.A. Investor Relations Departm
Slide 53: 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