Slide 1: MAPFRE and Banco do Brasil update their strategic alliance in the insurance business
MAPFRE AND BANCO DO BRASIL UPDATE THEIR STRATEGIC ALLIANCE IN THE INSURANCE BUSINESS
Slide 2: MAPFRE and Banco do Brasil formalize the updating of their strategic alliance
MAPFRE AND BANCO DO BRASIL FORMALIZE THE UPDATING OF THEIR STRATEGIC ALLIANCE IN THE INSURANCE BUSINESS MAPFRE will control 100% of MAPFRE BB SH2 (“SH2”), to be renamed MAPFRE SEGUROS, and which will include: o All the businesses from the traditional channel o The Automobile business from the bank
Slide 3: Consideration and funding
CONSIDERATION Reaches 2.406 billion Brazilian reals (546 million euros at current exchange rates). Equivalent to ≈1.4 times its book value (data at March 2018) Supposes an expected ROI of 10% FUNDING CASH: Excess available in the insurance holding in Brazil (approximately 250 million euros).
Slide 4: Reallocation of insurance business resulting from the agreement
REALLOCATION OF INSURANCE BUSINESS RESULTING FROM THE AGREEMENT MAPFRE SHAREHOLDING IN ENTITIES - % VARIATION SHAREHOLDING VARIATION ENTITY PREVIOUS NEW 75% MAPFRE VIDA (Life / Agency) 25% 100% 50% BRASIL VEÍCULOS (Auto / Bank) 50% 100% 50% MAPFRE SEGUROS GERAIS (Non-Life / Agency) 50% 100% -25% ALI
Slide 5: Previous structure and current agreement
BB SH1 MAPFRE BB SH2 MAPFRE PREVIOUS STRUCTURE 75% 25% 50% 50% BANK CHANNEL MAPFRE BANK CHANNEL MAPFRE • Life • Life • Auto • Auto • Mortgage Life • Mortgage Life • Large Risks • Large Risks • Agro • Agro • SMEs • SMEs • Homeowners • Homeowners • Other • Other BB BB MAPFRE SH1 MAPFRE MAPFRE MAPFRE S
Slide 6: What does the agreement represent for MAPFRE?
WHAT DOES THE AGREEMENT REPRESENT FOR MAPFRE? Significantly boosts its shareholding in the business in Brazil. Increases the profit contribution. MAPFRE BRAZIL 3-Year Objectives Simplifies MAPFRE’s strategy execution in Brazil. Leverages the MAPFRE brand in Brazil – the company becomes the s
Slide 7: MAPFRE in Brazil strengths
MAPFRE IN BRAZIL STRENGTHS BB MAPFRE (BANK CHANNEL BB: LIFE, MORTGAGE LIFE, 12 Million Clients AGRO, SME AND HOMEOWNERS) + MAPFRE 6,300 Employees (AGENCY CHANNEL AND AFFINITY: ALL BUSINESS LINES BB BANK CHANNEL: AUTOMOBILE AND LARGE RISKS) +20,000 Brokers + MAPFRE INVESTMENTS, PENSIONES AND FINANCIA
Slide 8: BB MAPFRE: a successful alliance in Brazil
BB MAPFRE: A SUCCESSFUL ALLIANCE IN BRAZIL RANKING MARKET SHARE LINE 2012 2013 2014 2105 2016 2017 2012 2013 2014 2105 2016 2017 Life Protection 1 1 1 1 1 1 20.6% 20.7% 22.0% 20.0% 18.3% 16.8% Agro 1 1 1 1 1 1 66.4% 72.0% 73.0% 75.5% 74.2% 74.2% Auto 2 2 2 2 2 2 14.5% 14.5% 14.9% 14.8% 12.6% 11.7% P
Slide 9: MAPFRE: present in Brazil since 1992
MAPFRE: PRESENT IN BRAZIL SINCE 1992 Creation of Launch of Acquisition of BRASIL Acquisition Alliance with BB & MAPFRE VERA CRUZ BANCO DO Saúde ASSISTÊNCIA, of Nossa Caixa Channel #2 in Non-Life SEGURADORA CESVI BRASIL Vida BRASIL insurance in and VERA and MAPFRE e Previdência Creation of Brazil CRU
Slide 10: Brazil in MAPFRE
BRAZIL IN MAPFRE Second largest market (after Spain) for MAPFRE in terms of business contribution. Contributes 20% of premiums and 18% of MAPFRE’s earnings worldwide. The strength of business in Brazil means MAPFRE is the number one multinational insurance group in Latin America today. PREMIUM
Slide 11: Forecast for the Brazilian economy
FORECAST FOR THE BRAZILIAN ECONOMY GDP STRENGTHS Ninth largest economy worldwide. 3,20% GDP: 2.6% of the world 1,70% (practically double Spain’s). 1,00% Population of over 200 million. 2015 2016 2017 2017 2018 2019 Potential growth is double the average of industrialized countries. -3,60% -3
Slide 12: MAPFRE
MAPFRE