Slide 1: Financial results: Analyst and investor presentation
June 2018 Financial results Analyst and investor presentation July 26th, 2018
Slide 2: Key Figures > 6M 2018
Key Figures > 6M 2018 Δ (constant 6M 2018 Δ exchange rates) Revenue 14,091 -8.7% -3.0% Total written and accepted premiums 11,970 -8.4% -2.3% - Non-Life 9,272 -9.6% -3.4% - Life 2,698 -4.2% 1.8% Non-Life Combined Ratio 97.4% 0.2 p.p Non-Life Loss Ratio 69.4% -0.3 p.p Non-Life Expense Ratio 28.0% 0.5
Slide 3: Highlights > 6M 2018
Highlights > 6M 2018 › Results underpinned by strong underlying fundamentals and improving recurring profit › Non-recurring impacts from corporate restructuring: › Completion of USA exit plan, with moderate impact on P&L (-€7 mn) › Extraordinary adjustments in Brazil, as a result of a more prudent b
Slide 4: Key figures by business unit
Key figures by business unit Premiums – Distribution by business unit Attributable result Premiums 6M 2018 Δ mn Δ% 6M 2018 Δ% GLOBAL RISKS IBERIA 249.9 (10.8) -4.2% 4,130 4.6% ASISTENCIA 4.8% 3.6% LATAM 82.9 (31.9) -27.8% 3,519 -21.3% BRAZIL 30.0 (33.0) -52.4% 2,018 -15.3% INSURANCE LATAM NORTH 24.1
Slide 5: Several core units are driving growth, while others are still catching up
Several core units are driving growth, while others are still catching up ∆ % constant Premiums exchange rates Top performers -8.4% -2.3% › IBERIA: › Excellent growth in Non Life (+7.3%) in all lines of business 2.8 › Life premiums are up 1.4%, excluding UNIÓN DUERO VIDA premiums -4.2% 2.7 +1.8% in
Slide 6: Non-Life: Key figures
Non-Life: Key figures Result of Non-Life business Combined ratio Premiums 6M 2018 Δ% 6M 2018 Δ 6M 2018 Δ% IBERIA 215.8 -2.7% 93.7% -1.4 p.p 2,964 7.3% LATAM 85.7 -51.4% 99.8% 3.3 p.p 2,535 -25.7% BRAZIL 19.4 -84.3% 102.4% 7.0 p.p 1,350 -17.8% INSURANCE LATAM NORTH 27.9 39.9% 95.1% -1.4 p.p 521 -48.4
Slide 7: Non-Life: Key highlights (I/IV)
Non-Life: Key highlights (I/IV) IBERIA Premiums Results › Good performance in retail Motor in Spain (+3.1%) and Health › Excellent performance in Motor, based on tariff increases, lower & Accidents (+5.4%) material damage claims costs and positive evolution of Verti › General Baremo provision: Premi
Slide 8: Non-Life: Key highlights (II/IV)
Non-Life: Key highlights (II/IV) MAPFRE RE Premiums Results › Decline in premiums as a result of currency movements, as a large › Increase in the loss ratio due to higher level of attritional claims part of the business stems from countries outside Europe › Realized gains of €14 mn (€12.6 mn at June
Slide 9: Non-Life: Key highlights (III/IV)
Non-Life: Key highlights (III/IV) LATAM SOUTH Premiums Results › Local currency premium growth in all countries, except Colombia and › Strong improvement in combined ratio (-3 p.p.) due to Chile and Chile, affected by the cancellation of unprofitable business in General Argentina P&C and Industrial
Slide 10: Non-Life: Key highlights (IV/IV) 2017 NatCat event update
Non-Life: Key highlights (IV/IV) 2017 NatCat event update › Loss development by business unit* Closing balance 12.31.2017 156.8 MAPFRE RE 2.2 GLOBAL RISKS (2.2) Puerto Rico 0.3 Others 0.2 Closing balance 03.31.2018 157.3 MAPFRE RE 2.0 GLOBAL RISKS 0.5 Puerto Rico 3.5 Others 0.2 Closing balance 06.30
Slide 11: Life: Key figures
Life: Key figures Result of Life business Premiums 6M 2018 Δ% 6M 2018 Δ% IBERIA 121.2 -13.7% 1,166 -1.7% BRAZIL 243.0 2.2% 668 -9.8% OTHER* 41.0 -16.3% 864 -2.9% TOTAL 405.2 -5.1% 2,698 -4.2% *Includes all other Life business, as well as consolidation adjustments Million euros 11
Slide 12: Life: Key highlights
Life: Key highlights IBERIA Premiums Results › Premiums would have grown by 1.4%, excluding the impact of UNIÓN › Fall in result due to 2017 one-offs: cancellation of a bancassurance DUERO VIDA premiums in 6M 2017 (€36 mn) contingent payment provision (€29 mn) and gain from the sale › Successful lau
Slide 13: Adjusted attributable result
Adjusted attributable result 6M 2017 6M 2018 Δ (mn) Δ (%) Attributable result 415.1 385.7 (29.4) -7.1% Weather related claims (Coastal Niño & Northeastern U.S. storms) (43.2) (11.5) 31.7 Corporate transactions* 15.7 (7.2) (22.9) Realized gains (Non Life)** 62.2 47.3 (14.9) Bancassurance reversal 27.
Slide 14: IBERIA Non-Life: successful implementation of transformation process in Spain
IBERIA Non-Life: successful implementation of transformation process in Spain IBERIA (Non-Life) – Pre-tax Profit Strong position in Spanish market - 6M 2018 485 Growth 454 117* Market MAPFRE Market share Position 97.2% 95.1% 368 93.7% Motor 2.4% 2.9% 19.1% 1 259 Homeowners 3.4% 2.4% 1* 94.5% 93.7% 2
Slide 15: BRAZIL: Update of strategic alliance with Banco do Brasil
BRAZIL: Update of strategic alliance with Banco do Brasil › MAPFRE will control 100% of MAPFRE BB SH2 (to be renamed MAPFRE SEGUROS), including: › All businesses from the traditional channel and auto business from the bank channel Overview › Renewal rights of the Large Risks business from the bank c
Slide 16: BRAZIL: Historic figures by business unit
BRAZIL: Historic figures by business unit Premiums Attributable result 12M 2016 12M 2017 6M 2018 12M 2016 12M 2017 6M 2018 BB MAPFRE SH1 PARTICIPAÇOES S.A 1,955.7 2,109.5 925.9 112.8 104.1 53.5 COMPANHIA SEGUROS ALIANÇA DO BRASIL S.A. 1,755.4 1,900.6 817.6 107.1 103.0 54.0 MAPFRE VIDA S.A. 200.3 208
Slide 17: Successful completion of US exit plan and profitability initiatives
Successful completion of US exit plan and profitability initiatives in place to mitigate impact of challenging retail Motor market environment Tennessee, › Transfer of renewal rights in April Kentucky & Premiums Results Combined ratio › Upfront payment received and book roll 6M 2018 Δ% 6M 2018 Δ% 6M
Slide 18: MAPFRE GLOBAL RISKS business reorganization aligned with our profitable growth strategy
MAPFRE GLOBAL RISKS business reorganization aligned with our profitable growth strategy › Creation of an entity through which MAPFRE GLOBAL RISKS will continue analyzing and Corporate managing large risks on behalf of MAPFRE restructuring › Direct business is transferred to MAPFRE ESPAÑA › Reinsuran
Slide 19: Markets movements have had a relevant impact on shareholders' equity
Markets movements have had a relevant impact on shareholders’ equity . . . Breakdown of shareholders’ equity (mn€) 12.31.2017 06.30.2018 Δ Capital, retained earnings and reserves 8,764 8,902 138 Treasury stock and other adjustments -41 -35 7 Unrealized capital gains of AFS portfolio, net of shadow 6
Slide 20: ... as well as Assets under Management
. . . as well as Assets under Management Assets under Management Investment portfolio – Breakdown by asset class € 49.7 bn -1.0% Other investments (10%) 4.9 Cash (4.3%) 2.2 Mutual Funds (2.5%) 60.1 59.5 Equity (5.3%) 1.2 2.6 Real Estate (4.3%) 2.2 10.3 -5.0% 9.8 Corporate Fixed Income (18.5%) 9.2 12
Slide 21: Lower level of realized gains and resilient accounting yields
Lower level of realized gains and resilient accounting yields Portfolio yield and duration 1 Realized capital gains & losses (mn€) 2 Market Value Accounting Market Duration (bn€) Yield Yield 6M 2017 6M 2018 12.31.2017 7.19 2.59% 1.23% 6.35 IBERIA 3 72.9 47.8 Non-Life (IBERIA, MAPFRE Non-Life MAPFRE
Slide 22: High level of financial flexibility
High level of financial flexibility Capital structure Leverage (%) Bank Subordinated 19.6% 19.5% financing debt 18.1% 7% 5% Senior debt 8% € 12.6 Equity 80% 06.30.2017 12.31.2017 06.30.2018 billion Interest coverage (x) 22.2 21.0 17.7 › Lower financial expenses (-18% YoY) › High level of financial f
Slide 23: Robust solvency position, despite market volatility
Robust solvency position, despite market volatility Solvency II ratio 200.2% 203.1% 8,875 9,003 › High quality capital base: €8,406 mn in Tier 1 (93% of Eligible Own Funds) 4,433 4,433 › Fully loaded Solvency II ratio: ≈184% (excluding impacts of transitional measures for technical provisions and eq
Slide 24: Market Consistent Embedded Value: Key Figures 2017
Market Consistent Embedded Value: Key Figures 2017 Key Highlights › Incorporation of the Life and Burial business at MAPFRE PERU VIDA and the Life businesses of MAPFRE Group in Brazil (MAPFRE Previdencia, BB MAPFRE SH1 PARTICIPACÕES and MAPFRE BB SH2 PARTICIPACÕES S.A.) › Improvement in financial ma
Slide 25: MAPFRE and ESG
MAPFRE and ESG Gender equality Inclusion Mobility › 39.3% Women in › +2.2% › +7.2% (2018 target: 10%) managerial positions (2018 target: 40%) › 120 people with a disability joined the company in 2017 (2018 target: 2%) › Integration of ESG factors supported by main research companies* Investment › ES
Slide 26: Wrap-up
Wrap-up Restructuring targets achieved in Brazil and the US Entering strategy execution phase Business scale and focus Aligned with our strategy and risk appetite Confidence in profit generation Committed to our shareholders and society 26
Slide 27: Terminology
03 Wrap-up 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
Slide 28: Investor Relations
03 Wrap-up Investor Relations Natalia Núñez Investor Relations and Capital Markets Director natalia.n@mapfre.com Antonio Triguero Leandra Clark Marta Sanchidrián Raquel Alfonso atriguero@mapfre.com clarkle@mapfre.com sanchim@mapfre.com asraque@mapfre.com 28
Slide 29: Contact us
03 Wrap-up 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: Shareholders Investors Investor Relations MAPFRE S.A. 900 10 35 33 (
Slide 30: 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