Slide 1: First half results 2013
First half results 2013 Presentation for investors and analysts 25th July 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 first half characterised by the recovery in revenues, operational excellence and profit growth Revenues 13,776.9 4.8% Premiums 11,781.5 5.2% Managed savings(1) 33,109.0 12.8% Non-life combined ratio 95.1% -0.5 p.p. ROE 9.1% -3.0 p.p. Shareholders' equity per share 2.55 9.0% Attrib
Slide 4: Highlights of the results
1 Key highlights Highlights of the results In a challenging environment profits grew again, thanks to: The benefits of geographical diversification, which offset the impact on premiums and results of the depreciation of the Brazilian Real and the decline in demand in Spain The improvement of the Non
Slide 5: Development of recurring results
1 Key highlights Development of recurring results 6M 2012 6M 2013 % REPORTED ATTRIBUTABLE RESULT 434.2 456.0 5.0% Investment portfolio: net realised capital gains -34.5 Greek fixed income 41.5 Impairment of equities 90.4 Gain from non-recurring exchange rate differences -13.2 Capital gain from the c
Slide 6: This is a good moment to review MAPFRE's equity story
1 Key highlights This is a good moment to review MAPFRE’s equity story Diversified Leading company insurer in A clear with 2/3 of Spain and financial its business Latin horizon outside of America Spain 6
Slide 7: Exposure to strategic markets
1 Key highlights Exposure to strategic markets ... Premiums by region – Direct Insurance – 6M 2013 Brazil 2,579.4 USA 795.0 Mexico 415.2 Venezuela 409.4 Colombia 385.0 Spain 31% Abroad 69% 298.1 Turkey Million Euros 7
Slide 8: ... with a great growth potential
1 Key highlights ... with a great growth potential Expected GDP growth Premiums, % of GDP - 2012 4.5% 3.9% 3.0% 4.5% 2.9% 2.6% 2.2% 1.6% 2.8% 1.7% 2012 2013E 2014E 2018E 3.7% 2.5% -1.4% 1.3% 1.2% Latin America Spain 0.2% USA USA Spain Latin America Turkey Turkey Life Non-Life Source: IMF, latest ava
Slide 9: A clear financial horizon: reinforcing and diversifying the funding structure
1 Key highlights A clear financial horizon: reinforcing and diversifying the funding structure In June, a €750 million revolving credit facility was signed Maturity date: 28.6.2018 Replaces the €500 million revolving credit facility maturing in June 2014, which has been cancelled in advance Syndicat
Slide 10: Consolidated financial information
1 Key highlights 2 Consolidated financial information 3 Business development 4 Appendix 5 Financial supplement 6 Schedule and contacts 10
Slide 11: 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 31% Abroad 69% Spain 47% Abroad 53% EUR M % Life Abroad Non-Life Abroad 158.4 32.5% 1,442.1 (11.2%) Non-Life Abroad Non-Life Spain 151.7 31.1%
Slide 12: Information by business areas
2 Consolidated financial information Information by business areas Contribution to premiums(1) Contribution to insurance results (2) (2) 6M 2012 6M 2013 6M 2012 6M 2013 Business area % % EUR M Business area % % EUR M SPAIN & PORTUGAL SPAIN & PORTUGAL 34.1% 31.1% 3,991.4 47.2% 47.2% 230.0 INSURANCE I
Slide 13: 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 6M 2012 6M 2013(2) % 6M 2012 6M 2013(2) % 6M 2012 6M 2013(2) SPAIN & PORTUGAL INSURANCE 2,622.1 2,529.3 -3.5% 228.0 167
Slide 14: Development of Non-Life insurance results
2 Consolidated financial information Development of Non-Life insurance results Non-Life Account Key points 6M 2012 6M 2013 % The good development of premiums reflects the Written and accepted growth of the international business, offset by the 8,191.5 8,664.9 5.8% lower business volume in Spain an
Slide 15: 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 6M 2012 6M 2013(1) % 6M 2012 6M 2013(1) % SPAIN & PORTUGAL INSURANCE 1,446.7 1,462.1 1.1% 82.9 132.5 59.8% MAPFRE BRASIL 961.4 981.3
Slide 16: Development of Life Assurance results
2 Consolidated financial information Development of Life Assurance results Life Account Key points 6M 2012 6M 2013 % Spain: excellent performance of the agents’ network Organic growth in the international business, offset Gross written and accepted 3,010.6 3,116.6 3.5% by: premiums – a contracti
Slide 17: Development of results from Other Business Activities
2 Consolidated financial information Development of results from Other Business Activities Other Business Activities(1) Key points 6M 2012 6M 2013 % Reflects: — the growth of the services business at MAPFRE Operating revenues 247.0 264.1 6.9% ASISTENCIA — the consolidation of FUNESPAÑA Operating e
Slide 18: Consolidated result
2 Consolidated financial information Consolidated result 6M 2012 6M 2013 % Result on restatement of financial accounts -3.6 -13.2 --- Result before tax and minority interests 823.8 866.5 5.2% Taxes -243.4 -240.9 -1.0% Result after tax 580.4 625.6 7.8% Result after tax from discontinued operations 0.
Slide 19: Balance sheet – key highlights
2 Consolidated financial information Balance sheet – key highlights 30.6.12 31.12.12 30.6.13 Goodwill 2,277.6 2,146.2 2,136.9 Reflects mainly the depreciation of the US Dollar and Other intangible assets 2,358.0 2,264.2 2,180.8 the Brazilian Real Other fixed assets 377.2 306.7 328.6 Cash & equival
Slide 20: A prudent investment policy adapted to the insurance business
2 Consolidated financial information A prudent investment policy adapted to the insurance business Breakdown by type of asset Breakdown by region(1) Mutual funds 840.8 (2.1%) Other Spain 20,792.7 53.5% 3,315.7 (8.2%) Other Europe 7,057.5 18.2% Cash 1,010.8 (2.5%) Brazil 4,134.3 10.6% Government fixe
Slide 21: Fixed income portfolio: 78.5% of investments
2 Consolidated financial information Fixed income portfolio: 78.5% of investments Breakdown by issuer Government Spain 10,584.1 55.3% Brazil 2,798.4 14.6% 58.4% matched with Life Italy 1,133.1 5.9% Assurance Multilateral bodies 843.6 4.4% reserves USA 734.5 3.8% Government Malta 427.4 2.2% 19,129.5
Slide 22: Fixed income portfolio: 78.5% of investments
2 Consolidated financial information Fixed income portfolio: 78.5% of investments Breakdown by rating (S&P) Assets matching technical reserves Unrated BB or lower 109.0 (0.3%) 1,284.8 (4.0%) AAA Matched 5,917.0 (18.6%) 12,588.8 (39.6%) €31,807.6 AA €31,807.6 2,982.6 (9.4%) million million A BBB 4,40
Slide 23: The strength of results offsets the appreciation of the Euro
2 Consolidated financial information The strength of results offsets the appreciation of the Euro Statement of changes in equity Key points Equity Minority TOTAL TOTAL interests 6M 2013 6M 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 investment
Slide 24: Business development
1 Key highlights 2 Consolidated financial information 3 Business development 4 Appendix 5 Financial supplement 6 Schedule and contacts 24
Slide 25: Spain & Portugal Insurance Division
3 Business development Spain & Portugal Insurance Division Key highlights (1) 6M 2012 6M 2013(1) % NON-LIFE BUSINESS 6M 2012 6M 2013 % Written and accepted premiums 2,622.1 2,529.3 -3.5% Written and accepted Underwriting result 228.0 167.7 -26.4% 4,068.8 3,991.4 -1.9% premiums Underwriting and finan
Slide 26: 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 for Non-Life insurance, which affected in particular t
Slide 27: Spain & Portugal Insurance Division
3 Business development Spain & Portugal Insurance Division Non-Life Premiums in Spain Combined ratios(1) in Spain 6M 2012 6M 2013 Combined ratio 92.5% 91.5% MOTOR 1,050.7 -9.6% MOTOR Loss ratio 76.7% 75.9% Expense ratio 15.8% 15.6% Combined ratio 104.3% 106.4% HEALTH 397.7 -1.6% HEALTH Loss ratio 86
Slide 28: Spain & Portugal Insurance Division
3 Business development Spain & Portugal Insurance Division Life business in Spain: activity indicators GROSS WRITTEN AND ACCEPTED PREMIUMS 6M 2012 6M 2013 % CHANGE IN FUNDS UNDER MANAGEMENT (1) 6M 2012 6M 2013 Regular premiums 253.2 220.5 -12.9% IFRS technical reserves (2) -254.9 493.8 Single premiu
Slide 29: Spain & Portugal Insurance Division: MAPFRE PORTUGAL
3 Business development Spain & Portugal Insurance Division: MAPFRE PORTUGAL Key highlights MAPFRE PORTUGAL – by business lines 6M 2012 6M 2013 % Other Written and accepted 66.3 61.7 -6.9% 5.5 (8.9%) premiums Motor Home 23.8 (38.6%) Underwriting and financial 2.9 (4.7%) 0.5 1.2 140.0% result Shop Oth
Slide 30: International Insurance Division
3 Business development International Insurance Division Key highlights MAPFRE AMÉRICA 6M 2012 6M 2013* % 6M 2012 6M 2013* % Gross written and accepted premiums 4,297.6 4,554.9 6.0% Written and accepted 5,416.0 5,889.1 8.7% premiums Underwriting and financial result 333.9 361.9 8.4% Other business ac
Slide 31: International Insurance Division: MAPFRE AMÉRICA
3 Business development International Insurance Division: MAPFRE AMÉRICA Premiums and results by countries PREMIUMS RESULTS (1) Local Local Currency Currency COUNTRY 6M 2012 6M 2013* % % 6M 2012 6M 2013* % % BRAZIL 2,325.8 2,579.4 10.9% 22.1% 227.3 251.8 10.8% 22.0% M EXICO 380.2 415.2 9.2% 4.9% 18.9
Slide 32: International Insurance Division: MAPFRE AMÉRICA
3 Business development International Insurance Division: MAPFRE AMÉRICA Significant decrease in the combined ratio, as a result of: Highlights – continued improvements both in the loss ratio and in the expense ratio, especially in Brazil – the sale of the MAPFRE ART and MAPFRE SALUD businesses (Ar
Slide 33: MAPFRE AMÉRICA: Premiums by distribution channels
3 Business development International Insurance Division: MAPFRE AMÉRICA Premiums by distribution channels(1) Other (9.6%) OTHER DISTRIBUTION CHANNELS BRAZIL COUNTRIES Car dealerships Agents’ channel (4.0%) (24.0%) Agents' network 8.0% 42.4% Brokers and independent agents 19.3% 42.8% Banks and other
Slide 34: MAPFRE AMÉRICA: Premiums by insurance lines
3 Business development International Insurance Division: MAPFRE AMÉRICA Premiums by insurance lines(1) Health & Accidents (7.8%) Motor PREMIUMS BY OTHER (31.3%) SEGMENTS BRAZIL COUNTRIES M otor 35.4% 26.0% €4,554.9 P&C 26.6% 37.1% million Life and burial 38.0% 19.0% Life & Burial (29.8%) Health and
Slide 35: International Insurance Division: MAPFRE INTERNACIONAL
3 Business development International Insurance Division: MAPFRE INTERNACIONAL Premiums and results by countries PREMIUMS RESULTS (1) Local Local Currency Currency COUNTRY 6M 2012 6M 2013* % % 6M 2012 6M 2013* % % USA 769.7 795.0 3.3% 4.1% 69.7 50.0 -28.3% -27.6% TURKEY 200.5 298.1 48.7% 52.8% 13.9 7
Slide 36: International Insurance Division: MAPFRE INTERNACIONAL
3 Business development International Insurance Division: MAPFRE INTERNACIONAL Highlights of the Unit Transfer of the Portuguese businesses to the Spain & Portugal Insurance Division and integration of the operations of PUERTO RICO, which were previously included in MAPFRE AMÉRICA Highlights by T
Slide 37: Global Businesses Division
3 Business development Global Businesses Division Key highlights 6M 2012 6M 2013 % % MAPFRE RE 1,850.6 23.2% Premiums & operating 2,548.8 3,033.5 19.0% income MAPFRE GLOBAL RISKS 632.1 3.3% Underwriting and financial MAPFRE ASISTENCIA 550.8 26.6% 102.5 142.1 38.6% result % Other non-technical result
Slide 38: Global Businesses Division: MAPFRE RE
3 Business development Global Businesses Division: MAPFRE RE Key figures Key highlights 6M 2012 6M 2013 % The development of Non-Life premiums reflects the Gross written and accepted growth of business with third parties and the 1,501.9 1,850.6 23.2% premiums formalisation of reinsurance operation
Slide 39: Global Businesses Division: MAPFRE GLOBAL RISKS
3 Business development Global Businesses Division: MAPFRE GLOBAL RISKS Key figures Key highlights Reflects: 6M 2012 6M 2013 % – the growth in Latin America, especially in the Fire and Transport lines Gross written and accepted 611.7 632.1 3.3% – the consolidation of SOLUNION by the equity method p
Slide 40: Global Businesses Division: MAPFRE ASISTENCIA
3 Business development Global Businesses Division: MAPFRE ASISTENCIA Key figures Key highlights 6M 2012 6M 2013 % Organic growth in Europe and Asia Operating income 435.2 550.8 26.6% USA: positive impact of a Roadside Assistance contract as well as of the acquisition of Century, both signed in t
Slide 41: Appendix
1 Key highlights 2 Consolidated financial information 3 Business development 4 Appendix 5 Financial supplement 6 Schedule and contacts 41
Slide 42: Consolidated income statement
4 Appendix Consolidated income statement 6M 2012 6M 2013 % NON-LIFE INSURANCE AND REINSURANCE Gross written and accepted premiums 8,191.5 8,664.9 5.8% Premiums earned, net of ceded and retroceded reinsurance 6,585.5 6,567.9 -0.3% Net claims incurred and variation in other technical provisions -4,435
Slide 43: Profit breakdown by units and companies
4 Appendix Profit breakdown by units and companies Contribution to consolidated result Net Minority 6M 2013 6M 2012 Result interests € Million % € Million % (1) SPAIN & PORTUGAL INSURANCE 230.0 230.0 213.5 MAPFRE VIDA 77.2 77.2 16.9% 55.3 12.7% MAPFRE FAMILIAR 94.0 94.0 20.6% 108.5 25.0% MAPFRE EMPR
Slide 44: 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 6M12 6M13 % 6M12 6M13 6M12 6M13 % (1) SPAIN AND PORTUGAL INSURANCE 213.5 230.0 7.7% -69.1 0.0 282.6 230.0 -18.6% MAPFRE VIDA 55.3 77.2 39.6% -16.0
Slide 45: Expense and loss ratios
4 Appendix Expense and loss ratios RATIOS (1) (2) (3) Expense ratio Loss ratio Combined ratio 6M 2012 6M 2013 6M 2012 6M 2013 6M 2012 6M 2013 MAPFRE S.A. consolidated 28.2% 27.9% 67.4% 67.2% 95.6% 95.1% (4) SPAIN & PORTUGAL INSURANCE 19.7% 19.4% 70.0% 72.1% 89.7% 91.5% MAPFRE FAMILIAR 19.5% 19.1% 72
Slide 46: Net financial income: selected information
4 Appendix Net financial income: selected information Breakdown of net financial income (before taxes) 6M 2012 6M 2013 % Net financial income, Non-life 278.8 328.4 17.8% - of which realised capital gains and impairments -139.5 95.0 --- - of which foreign exchange gains/(losses) 15.1 27.9 85.1% Net f
Slide 47: Net financial income: selected information (contd.)
4 Appendix Net financial income: selected information (contd.) Realisation gains, impairments and other financial results Impairments from Other financial Impact on pre-tax Realisation gains (1) Bankia and Cattolica results result 6M 2012 6M 2013 6M 2012 6M 2013 6M 2012 6M 2013 6M 2012 6M 2013 MAPFR
Slide 48: Financial supplement
1 Key highlights 2 Consolidated financial information 3 Business development 4 Appendix 5 Financial supplement 6 Schedule and contacts 48
Slide 49: Operating companies: Key figures – MAPFRE FAMILIAR
5 Financial supplement Operating companies: Key figures MAPFRE FAMILIAR MAPFRE FAMILIAR – by lines 6M 2012 6M 2013 % Motor 6M 2012 6M 2013 % Gross written and accepted premiums 2,223.5 2,114.5 -4.9% Gross written and accepted premiums 1,161.9 1,050.7 -9.6% Net premiums earned 1,921.7 1,648.7 -14.2%
Slide 50: MAPFRE FAMILIAR – by lines (contd.)
5 Financial supplement Operating companies: Key figures MAPFRE FAMILIAR – by lines (contd.) Health 6M 2012 6M 2013 % Burial 6M 2012 6M 2013 % Gross written and accepted premiums Gross written and accepted premiums 404.0 397.7 -1.6% 239.7 243.7 1.7% Net premiums earned 193.7 186.9 -3.5% Net premiums
Slide 51: Operating companies: Key figures – MAPFRE EMPRESAS
5 Financial supplement Operating companies: Key figures MAPFRE EMPRESAS 6M 2012 6M 2013 % Gross written and accepted premiums 400.4 371.2 -7.3% Net premiums earned 276.7 286.5 3.5% Underwriting result 64.3 59.5 -7.5% Net financial income 5.8 22.4 286.2% Other business activities 0.1 0.2 100.0% Other
Slide 52: Operating companies: Key figures – MAPFRE VIDA
5 Financial supplement Operating companies: Key figures MAPFRE VIDA 6M 2012 6M 2013 % Breakdown of premiums 6M 2012 6M 2013 % Technical Reserves excluding Regular Premiums 253.2 220.5 -12.9% shadow accounting 18,219.0 18,347.0 0.7% - Agents' and other channels 151.9 139.8 -8.0% Shadow accounting adj
Slide 53: Operating companies: Key figures – MAPFRE VIDA
5 Financial supplement Operating companies: Key figures MAPFRE VIDA Funds under management 6M 2012 6M 2013 % Change in funds under management(1) 6M 2012 6M 2013 Regular premiums insurance 4,508.5 4,657.8 3.3% (2) IFRS technical reserves -254.9 493.8 - Agents' channel and others 3,082.8 3,236.2 5.0%
Slide 54: Operating companies: Key figures – MAPFRE PORTUGAL
5 Financial supplement Operating companies: Key figures MAPFRE PORTUGAL MAPFRE PORTUGAL– by lines 6M 2012 6M 2013 % Non-Life 6M 2012 6M 2013 % Gross written and accepted premiums 49.1 45.0 -8.4% Gross written and accepted premiums 66.3 61.7 -6.9% Net premiums earned 45.0 36.0 -20.0% Net premiums ear
Slide 55: 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) 6M 2012* 6M 2013* % Non-Life 6M 2012* 6M 2013* % Gross written and accepted premiums 4,130.0 4,554.9 10.3% Gross written and accepted premiums 2,
Slide 56: Operating companies: Key figures – MAPFRE BRASIL
5 Financial supplement Operating companies: Key figures MAPFRE BRASIL MAPFRE BRASIL – by lines 6M 2012 6M 2013 % Non-Life 6M 2012 6M 2013 % Gross written and accepted premiums 1,364.4 1,598.1 17.1% Gross written and accepted premiums 2,325.8 2,579.4 10.9% Net premiums earned 1,146.6 1,251.4 9.1% Net
Slide 57: 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) 6M 2012* 6M 2013* % Non-Life 6M 2012* 6M 2013* % Gross written and accepted premiums 1,219.7 1,334.2 9.4% Gross written and accepted
Slide 58: Operating companies: Key figures – MAPFRE USA
5 Financial supplement Operating companies: Key figures MAPFRE USA 6M 2012 6M 2013 % Gross written and accepted premiums 769.7 795.0 3.3% Net premiums earned 706.9 675.8 -4.4% Underwriting result 7.3 -19.2 --- Net financial income 63.6 67.4 6.0% Other business activities 0.0 0.0 --- Other non-techni
Slide 59: Operating companies: Key figures – MAPFRE RE
5 Financial supplement Operating companies: Key figures MAPFRE RE MAPFRE RE – by lines 6M 2012 6M 2013 % Non-Life 6M 2012 6M 2013 % Gross written and accepted premiums 1,501.9 1,850.6 23.2% Gross written and accepted premiums 1,260.2 1,621.4 28.7% Net premiums earned 1,027.1 1,161.0 13.0% Net premiu
Slide 60: Operating companies: Key figures – MAPFRE GLOBAL RISKS and ASISTENCIA
5 Financial supplement Operating companies: Key figures MAPFRE GLOBAL RISKS MAPFRE ASISTENCIA 6M 2012 6M 2013 % 6M 2012 6M 2013 % Gross written and accepted premiums 611.7 632.1 3.3% Operating income 435.2 550.8 26.6% - Global Risks 552.6 593.6 7.4% - Gross written and accepted premiums 348.0 456.4
Slide 61: Schedule and contacts
1 Key highlights 2 Consolidated financial information 3 Business development 4 Appendix 5 Financial supplement 6 Schedule and contacts 61
Slide 62: 2013 Provisional Schedule
6 Schedule and contacts 2013 Provisional Schedule Release First Half 2013 Results 25-July-13 Madrid Conference Call – First Half 2013 Results Release Third Quarter 2013 Results 30-Oct-13 Madrid Conference Call – Third Quarter 2013 Results 31-Oct-13 London Presentation to analysts – Third Q
Slide 63: 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 64: 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