Slide 1: Filing letter to the Spanish Securities and Exchange Commission
Madrid, October 31, 2019 SPANISH SECURITIES AND EXCHANGE COMMISSION Please find attached the documentation to be presented to investors in upcoming meetings. Ángel L. Dávila Bermejo General Counsel
Slide 2: 9M 2019 Results Analyst & Investor presentation
9M 2019 Results Analyst & Investor presentation October 31st, 2019
Slide 3: Key Figures 9M 2019
Key Figures > 9M 2019 Δ at constant 9M 2019 Δ exchange rates Revenue 21,619 6.5% 6.0% Total written and accepted premiums 17,647 2.5% 2.0% - Non-Life 13,568 3.7% 2.9% - Life 4,080 -1.3% -1.3% Non-Life Combined Ratio 96.4% -1.7 p.p Non-Life Loss Ratio 67.9% -1.7 p.p Non-Life Expense Ratio 28.4% 0.0 p
Slide 4: Key figures by business unit
Key figures > by business unit Premiums – Breakdown by business unit Attributable result Premiums Combined ratio ROE 9M 2019 Δ mn Δ% 9M 2019 Δ% 9M 2019 Δ p.p. 9M 2019 Δ p.p.(2) IBERIA 349.3 (4.7) -1.3% 5,963 0.4% 93.8% 0.1 p.p 11.8% -0.6 p.p ASISTENCIA IBERIA LATAM 150.4 15.7 11.7% 5,861 13.3% 93.4%
Slide 5: Adjusted attributable result
Adjusted attributable result 9M 2018 9M 2019 Δ (mn) Δ (%) Attributable result 528.8 462.9 (65.9) -12.5% Weather related and NatCat claims (58.1) (39.7) 18.4 Direct insurance operations (1) (11.5) (9.8) 1.8 (2) MAPFRE RE (46.6) (30.0) 16.6 Reorganization of operations & other corporate transactions (
Slide 6: Evolution of Life business
Evolution of Life business Result of Life business Highlights IBERIA: 9M 2018 Result of Life business 9M 2019 Δ mn Δ% › Strong profitability in the Life-Protection business, with volumes growing (+8%) and combined ratios improving IBERIA 174.1 195.7 21.6 12.4% › Increase in Life-Savings result, due
Slide 7: Capital structure & credit metrics
Capital structure & credit metrics Capital structure Leverage (%) 22.5% 22.4% Subordinated debt Bank financing 8% 6% 12.31.2018 09.30.2019 Senior debt 8% Interest coverage (x) Equity € 13.3 78% 18.4 18.2 billion 12.31.2018 09.30.2019 6
Slide 8: Shareholders' equity
Shareholders’ equity Change in shareholders’ equity (€ mn) Currency conversion differences (€ mn) % Δ currency 09.30.2019 Δ YTD YTD Balance at 12/31 previous year 7,994 Total -620 118 - Result for the period 463 of which: Dividends -447 US dollar 553 110 5.1% Net unrealized capital gains of AFS port
Slide 9: Investment portfolio & Assets under management
Investment portfolio & Assets under management Investment portfolio – Breakdown by asset class Assets under management 54.8 Unit Linked (4.5%) 2.4 Other investments (4.8%) 2.6 2.7 Cash (5%) 1.5 12.31.2018 09.30.2019 %Δ Mutual funds (2.7%) 2.6 Equity (4.7%) 2.4 Assets under management 58.5 64.6 10.4%
Slide 10: Fixed income portfolios and financial gains & losses
Fixed income portfolios and financial gains & losses Fixed income portfolios – Euro area - actively managed Fixed income portfolios – Other main regions & units Non Life (IBERIA + MAPFRE RE) (€7.5 bn market value) Total - €6.8 bn market value 12.31.2018 03.31.2019 06.30.2019 09.30.2019 Modified dura
Slide 11: IBERIA
IBERIA Key figures – by line of business Key highlights Premiums Attributable result Combined ratio › Excellent premium growth: 9M 2019 Δ 9M 2019 Δ 9M 2019 Δ › Motor: positive developments in Spain, both in Total 5,962.6 0.4% 349.3 -1.3% -- -- retail (+1.4%), as well as in fleets (+4%) Non-Life (1)
Slide 12: BRAZIL
BRAZIL Key figures Key highlights (continued) Premiums Attributable result Combined Ratio 9M 2019 Δ 9M 2019 Δ 9M 2019 Δ › Non-Life: increase in the attributable result (+€52.4 mn) Total 3,100.3 3.8% 70.4 79.7% -- -- › Absence of extraordinary negative adjustments Non-Life (1) 1,941.6 -2.7% 46.1 -- 9
Slide 13: LATAM NORTH
LATAM NORTH Key figures Premiums Attributable result Combined ratio 9M 2019 Δ 9M 2019 Δ 9M 2019 Δ LATAM NORTH 1,570.5 59.8% 41.9 18.6% 95.8% -0.7 p.p of which: Mexico 1,099.1 97.6% 19.5 23.4% 97.4% -1.2 p.p Central America 362.3 7.9% 16.5 15.8% 96.5% 1.1 p.p Dominican Rep. 109.1 19.9% 5.9 11.8% 95.4
Slide 14: LATAM SOUTH
LATAM SOUTH Key figures Premiums Attributable result Combined ratio 9M 2019 Δ 9M 2019 Δ 9M 2019 Δ LATAM SOUTH 1,190.3 -1.3% 38.1 -36.6% 97.4% 0.4 p.p of which: Peru 429.1 12.2% 19.8 -2.0% 92.2% 0.7 p.p Colombia 290.3 -4.0% 1.3 133.5% 100.5% 2.1 p.p Chile 182.7 5.3% 6.2 -77.8% 98.8% 2.2 p.p Argentina
Slide 15: NORTH AMERICA
NORTH AMERICA Key figures – by business unit Key highlights Premiums Attributable result Combined ratio 9M 2019 Δ 9M 2019 Δ 9M 2019 Δ › Impact of dollar appreciation on average United States 1,505.8 -4.4% 49.6 -- 100.9% -2.6 p.p exchange rates (+6.3%) of which: › Fall in premiums in local currency (
Slide 16: EURASIA
EURASIA Key figures Premiums Attributable result Combined ratio 9M 2019 Δ 9M 2019 Δ 9M 2019 Δ EURASIA 1,301.5 -4.0% 3.2 -80.7% 106.9% 0.2 p.p of which: Italy 365.4 3.2% -3.5 38.6% 106.3% -5.5 p.p Turkey 332.8 -7.5% 0.6 -96.9% 115.4% 4.7 p.p Germany 276.8 3.1% 3.2 -- 99.7% -0.1 p.p Malta 271.7 -11.2%
Slide 17: MAPFRE RE
MAPFRE RE Key figures * - by business unit Key highlights 9M 2019 Δ › Premiums benefitting from currency movements, Total Premiums 4,083.1 7.6% especially the US dollar of which: › Lower issuance in global risks segment due to non- Non-Life 3,738.2 11.1% renewal of unprofitable business Life 344.9 -
Slide 18: MAPFRE ASISTENCIA
MAPFRE ASISTENCIA Gross operating result * Key highlights Total 2018 2019 Assistance Travel Insurance Special Risks › Updating of business forecasts for the Total impact -3.8 -4.2 2.1 -7.4 1.2 assistance and special risks business in the UK & France -13.2 -14.3 0.0 -13.0 -1.3 United Kingdom and Nort
Slide 19: Solvency II
Solvency II Solvency II ratio Highlights 200.2% 189.5% 189.1% 198.0% Fully › High quality capital base: loaded* 179.9% 173.2% 173.9% 182.8% › 87% Tier 1 8.9 8.8 8.8 9.2 › Evolution 06.30.2019 vs. 03.31.2019 4.7 4.7 4.7 › Increase in ratio: +8.9 p.p. 4.4 of which: › Change in IFRS equity: +12.7 p.p.
Slide 20: Wrap up
Wrap up Turnaround Brazil & USA > successful strategy implementation and improving results, on the right path to meeting targets IBERIA > positive premium and profitability trends, in a very competitive market environment MAPFRE RE > important profit contributor, with a focus on reducing exposures i
Slide 21: Q&A
Q&A 20
Slide 22: Terminology
Terminology Revenue Top line figure which includes premiums, financial income, and revenue from non-insurance entities and other revenue Combined ratio – Non-Life Expense ratio + Loss ratio Expense ratio – Non-Life (Operating expenses, net of reinsurance – other technical revenue + other technical e
Slide 23: Investor Relations
Investor Relations September 2018Investor Relations Natalia Núñez and Capital Markets Director Financial results natalia.n@mapfre.com Analyst and investor presentation November 8th. 2018 Leandra Clark Marta Sanchidrián Raquel Alfonso Leslie Hoffman Fernando García de la Santa clarkle@mapfre.com sanc
Slide 24: Contact us
Contact us If you are an investor or shareholder and would like to receive more information regarding the MAPFRE share or have questions regarding MAPFRE´s results and strategy, please find our contact information below: September 2018 Shareholders Investors Financial Investor Relations results MAPF
Slide 25: 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 development, its results and its divi