Slide 1: First half results 2014
First half results 2014 Presentation for investors and analysts 24th July 2014
Slide 2: Contents
Contents 1 Key highlights 2 Consolidated financial information 3 Regional Areas and Business Units 4 Financial supplement 5 Schedule and contacts 2
Slide 3: Key highlights
1 Key highlights A first half marked by robust business, the strength of the euro and the improvement in financial markets Revenues 13,720.0 -0.4% Premiums 11,784.6 0.0% Managed savings 37,075.8 12.0% Non-life combined ratio 95.7% 0.6 p.p. ROE 9.7% 0.6 p.p. Shareholders' equity per share 2.76 8.2% A
Slide 4: Highlights of the first half results
1 Key highlights Highlights of the first half results Sustained growth of the international business, along with a positive impact from the economic recovery on the domestic business. At constant exchange rates, premiums would grow 8%. The combined ratio remains at excellent levels, while financial
Slide 5: The Spanish economy is starting to show clear signs of recovery
1 Key highlights The Spanish economy is starting to show clear signs of recovery Consumer spending – New car registrations – y-o-y growth (%) growth (%) 4.5 3.4 3.3 2.8 2.5 1.6 1.5 1.2 1.2 2.3 3.3 0.6 0.7 0.0 0.1 -0.4 -0.3 -1.6 -1.3 -1.0-1.0 -1.0 -1.7 -1.8 -1.8 -2.7 -2.8 -3.0 -3.0 -3.1 -3.6 -4.2 -4.
Slide 6: Excellent technical margin
1 Key highlights Excellent technical margin Motor combined ratio – evolution 99.1% 99.3% 98.9% 98.3% 98.3% 98.4% 98.0% 97.8% 97.9% 96.8% 96.5% 95.5% 94.7% 94.2% 94.1% 92.8% 92.5% 91.7% 91.5% 3M 12 6M 12 9M 12 12M 12 3M 13 6M 13 9M 13 12M 13 3M 14 6M 14 MAPFRE REST OF SPANISH MARKET 6
Slide 7: Contents
Contents 1 Key highlights 2 Consolidated financial information 3 Regional Areas and Business Units 4 Financial supplement 5 Schedule and contacts 7
Slide 8: Consolidated income statement
2 Consolidated financial information Consolidated income statement 6M 2013 6M 2014 U% NON-LIFE INSURANCE AND REINSURANCE Gross written and accepted premiums 8,664.9 8,623.0 -0.5% Premiums earned, net of ceded and retroceded reinsurance 6,567.9 6,416.3 -2.3% Net claims incurred and variation in other
Slide 9: Development of Non-Life insurance results
2 Consolidated financial information Development of Non-Life insurance results Non-Life Account 6M 2013 6M 2014 U % Gross written and accepted premiums 8,664.9 8,623.0 -0.5% Underwriting result 324.1 276.8 -14.6% Net financial and other non-technical income 302.7 368.9 21.9% Result of Non-life busin
Slide 10: Development of Non-Life insurance results: key highlights
2 Consolidated financial information Development of Non-Life insurance results: key highlights In cumulative terms, premiums remained at levels in line with those of the previous year, although at constant exchange rates they would have grown 8%, mainly thanks to the good business development in S
Slide 11: Development of Non-Life insurance results: key highlights
2 Consolidated financial information Development of Non-Life insurance results: key highlights Net financial In cumulative terms, reflect substantial growth in Spain and Latin America, which offset and other lower financial income at MAPFRE USA non-technical The significant increase in the quart
Slide 12: Development of Life Assurance results
2 Consolidated financial information Development of Life Assurance results Life Account 6M 2013 6M 2014 U% Gross written and accepted premiums 3,116.6 3,161.6 1.4% Underwriting and financial result 243.5 316.1 29.8% Unrealised gains from unit-linked investments(1) 40.8 57.7 41.4% Result of Life busi
Slide 13: Development of Life Assurance results: key highlights
2 Consolidated financial information Development of Life Assurance results: key highlights 1.4% increase (8% at constant exchange rates) against the previous year, driven by new business in reinsurance, Spain and Brazil This year, sales campaigns in Spain were concentrated in the first quarter,
Slide 14: Development of results from Other Business Activities
2 Consolidated financial information Development of results from Other Business Activities Other Business Activities (1) 6M 2013 6M 2014 U% Operating revenues 264.1 276.3 4.6% Operating expenses -252.2 -274.2 8.7% Net financial income & other -43.3 -34.3 -20.8% Results from Other -31.4 -32.2 2.5% Bu
Slide 15: Consolidated result
2 Consolidated financial information Consolidated result 6M 2013 6M 2014 U% Result on restatement of financial accounts -13.2 -45.4 --- Result before tax and minority interests 866.5 941.9 8.7% Taxes -240.9 -268.7 11.5% Result after tax 625.6 673.2 7.6% Result after tax from discontinued operations
Slide 16: Development of the consolidated result: key highlights
2 Consolidated financial information Development of the consolidated result: key highlights Pre-tax result Strong growth of results driven by financial income, which offset the significant negative impact of the restatement of Venezuela’s accounts for inflation The tax rate decreases, mainly as
Slide 17: Development of the balance sheet
2 Consolidated financial information Development of the balance sheet 30.6.13 31.12.13 30.6.14 Goodwill 2,136.9 1,928.4 1,946.2 Other intangible assets 2,180.8 1,969.5 1,979.9 Other fixed assets 328.6 326.2 319.1 Cash & equivalents 1,010.8 1,162.8 1,015.4 Investments & real estate 39,519.1 39,212.0
Slide 18: Development of the balance sheet: key highlights
2 Consolidated financial information Development of the balance sheet: key highlights Investments, Increase compared to 2013 year-end figures, as a result of: shareholders’ equity & 9 larger business volumes reserves 9 the strong decrease of spreads in Spain 9 the appreciation of the Brazilian rea
Slide 19: A prudent investment policy adapted to the insurance business
2 Consolidated financial information A prudent investment policy adapted to the insurance business Investment portfolio - Breakdown by type of asset Mutual funds Other investments 941.7 (2.2%) 3,746.3 (8.5%) Cash 1,015.4 (2.3%) Equities 1,476.4 (3.4%) Property 2,252.9 (5.2%) -of which: Corporate fix
Slide 20: Development of equity
2 Consolidated financial information Development of equity Shareholders' Minority TOTAL TOTAL Equity interests 6M 2014 6M 2013 BALANCE AS AT PRIOR YEAR END 7,833.5 2,060.2 9,893.7 10,136.3 Additions and deductions accounted for directly in equity Investments available for sale 1,311.9 240.7 1,552.6
Slide 21: Development of equity: key highlights
2 Consolidated financial information Development of equity: key highlights Investments available for Strong increase in the value of the Spanish portfolio as a result of the decline in sale spreads, offset to a large extent by shadow accounting Translation Positive impact, stemming from the appr
Slide 22: Contents
Contents 1 Key highlights 2 Consolidated financial information 3 Regional Areas and Business Units 4 Financial supplement 5 Schedule and contacts 22 The information shown below reflects the new operational structure in force since 1st January 2014, which has been organised into Territorial and Regio
Slide 23: Significant contribution of reinsurance and of foreign business activities
3 Regional Areas and Business Units Significant contribution of reinsurance and of foreign business activities Premiums(1) Contribution to consolidated results Iberia 34% Other regions 66% Iberia 44% Other regions 56% EUR M % MAPFRE RE APAC IBERIA 227.3 43.8% 1,885.6 (14.9%) 46.1 (0.4%) BRAZIL 68.3
Slide 24: Written premiums by Regional Areas
3 Regional Areas and Business Units Written premiums by Regional Areas Cumulative figures Quarterly figures REGIONAL AREA 6M 2013 6M 2014 U% IBERIA 4,285.9 4,298.2 0.3% U % o/ U % o/ BRAZIL 2,676.0 2,705.5 1.1% REGIONAL AREA 2Q 2013 1Q 2014 2Q 2014 1Q 2014 2Q 2013 IBERIA 1,848.7 2,627.0 1,671.2 -36.
Slide 25: Attributable results by Regional Areas
3 Regional Areas and Business Units Attributable results by Regional Areas Cumulative figures Quarterly figures REGIONAL AREA 6M 2013 6M 2014 U% IBERIA 253.5 227.3 -10.3% U % o/ U % o/ BRAZIL 56.2 68.3 21.5% REGIONAL AREA 2Q 2013 1Q 2014 2Q 2014 1Q 2014 2Q 2013 IBERIA 104.5 103.6 123.7 19.4% 18.4% L
Slide 26: Information by Regional Areas and countries - IBERIA
3 Regional Areas and Business Units Information by Regional Areas and countries - IBERIA Cumulative figures PREMIUMS RESULTS(1) 6M 2013 6M 2014 U % 6M 2013 6M 2014 U % IBERIA 4,285.9 4,298.2 0.3% 391.2 383.7 -1.9% SPAIN 4,204.4 4,192.6 -0.3% 388.8 381.6 -1.9% PORTUGAL 81.5 105.6 29.6% 2.4 2.1 -12.5%
Slide 27: Information by Regional Areas and countries - IBERIA
3 Regional Areas and Business Units Information by Regional Areas and countries - IBERIA The variation in premiums reflects: 9 In Non-Life insurance, growth in Health insurance at MAPFRE FAMILIAR, which has offset to a large extent the reduction in premium volume at MAPFRE GLOBAL RISKS driven by i
Slide 28: Information by Regional Areas and countries - LATAM
3 Regional Areas and Business Units Information by Regional Areas and countries - LATAM Cumulative figures PREMIUMS RESULTS(1) U% U% local local 6M 2013 6M 2014 U% currency(2) 6M 2013 6M 2014 U% currency(2) BRAZIL 2,676.0 2,705.5 1.1% 19.1% 258.6 341.1 31.9% 55.7% LATAM SOUTH 1,463.8 1,429.7 -2.3% 9
Slide 29: Information by Regional Areas and countries - LATAM
3 Regional Areas and Business Units Information by Regional Areas and countries - LATAM Quarterly figures PREMIUMS RESULTS(1) U % o/ U % o/ U % o/ U % o/ 2Q 2013 1Q 2014 2Q 2014 1Q 2014 2Q 2013 2Q 2013 1Q 2014 2Q 2014 1Q 2014 2Q 2013 BRAZIL 1,440.3 1,174.1 1,531.4 30.4% 6.3% 142.9 151.0 190.1 25.9%
Slide 30: Information by Regional Areas and countries - LATAM
3 Regional Areas and Business Units Information by Regional Areas and countries - LATAM BRAZIL 9 Growth in the Agricultural & Livestock and Motor lines, in spite of the contraction in the sale of vehicles and price competition. In the quarter, significant increase in the Industrial Risks segment, in
Slide 31: Information by Regional Areas and countries - LATAM
3 Regional Areas and Business Units Information by Regional Areas and countries - LATAM Argentina 9 Decrease in premiums due to the strong depreciation of the ARS against the EUR (-37.1%) (1). In the quarter, significant growth (+33%) in Motor insurance in local currency 9 Increase in IBNR reserve
Slide 32: Information by Regional Areas and countries - LATAM
3 Regional Areas and Business Units Information by Regional Areas and countries - LATAM LATAM NORTH Mexico 9 Strong recovery in Non-Life issuance in the second quarter, driven by the Motor and Special Risks lines 9 Improvement in the underwriting result in Non-Life insurance, mainly stemming from
Slide 33: Information by Regional Areas and countries - INTERNATIONAL
3 Regional Areas and Business Units Information by Regional Areas and countries - INTERNATIONAL Cumulative figures (1) PREMIUMS RESULTS U % local U % local (2) (2) 6M 2013 6M 2014 U% currency 6M 2013 6M 2014 U% currency NORTH AMERICA 1,028.0 1,016.4 -1.1% 55.5 37.4 -32.6% of which: USA 868.3 868.7 0
Slide 34: Information by Regional Areas and countries - INTERNATIONAL
3 Regional Areas and Business Units Information by Regional Areas and countries - INTERNATIONAL Quarterly figures PREMIUMS RESULTS(1) U % o/ U % o/ U % o/ U % o/ 2Q 2013 1Q 2014 2Q 2014 1Q 2014 2Q 2013 2Q 2013 1Q 2014 2Q 2014 1Q 2014 2Q 2013 NORTH AMERICA 532.0 486.0 530.4 9.1% -0.3% 37.6 9.0 28.4 2
Slide 35: Information by Regional Areas and countries - INTERNATIONAL
3 Regional Areas and Business Units Information by Regional Areas and countries – INTERNATIONAL NORTH AMERICA MAPFRE USA 9 Increase in premiums in local currency during the year, driven by Motor (+2.6%) and Home (+9.6%) insurance 9 Improvement in the loss ratio in the quarter, despite severe weath
Slide 36: Information by Regional Areas and countries - INTERNATIONAL
3 Regional Areas and Business Units Information by Regional Areas and countries - INTERNATIONAL EMEA Turkey 9 Increase in premiums in local currency, driven mainly by the Motor and Fire insurance lines. In the second quarter, slowdown due to a reduction in consumption in the country and strong pri
Slide 37: Information by Regional Areas and countries - INTERNATIONAL
3 Regional Areas and Business Units Information by Regional Areas and countries - INTERNATIONAL APAC The Philippines 9 Decrease in premiums due to the depreciation of the PHP against the EUR (-13.0%)(1) and the non-renewal of a number of corporate accounts in an environment of strong price competi
Slide 38: MAPFRE RE
3 Regional Areas and Business Units MAPFRE RE PREMIUMS RESULTS(1) 6M 2013 6M 2014 U % 6M 2013 6M 2014 U% Cumulative figures 1,850.6 1,885.6 1.9% 85.8 93.9 9.4% PREMIUMS RESULTS(1) U % o/ U % o/ U % o/ U % o/ 2Q 2013 1Q 2014 2Q 2014 1Q 2014 2Q 2013 2Q 2013 1Q 2014 2Q 2014 1Q 2014 2Q 2013 Quarterly fi
Slide 39: Regional Areas: Income Statement – Non-Life
3 Regional Areas and Business Units Regional Areas: Income Statement – Non-Life LATAM LATAM NORTH CONSOLID. NON-LIFE INSURANCE AND REINSURANCE IBERIA NORTH SOUTH BRAZIL EMEA AMERICA APAC REINSURANCE ADJUST. TOTAL Gross written and accepted premiums 2,803.9 531.3 1,226.0 1,759.0 546.5 1,014.6 46.1 1,
Slide 40: Regional Areas: Income Statement – Life
3 Regional Areas and Business Units Regional Areas: Income Statement – Life LATAM LATAM NORTH CONSOLID. LIFE INSURANCE AND REINSURANCE IBERIA NORTH SOUTH BRAZIL EMEA AMERICA APAC REINSURANCE ADJUST. TOTAL Gross written and accepted premiums 1,494.3 116.2 203.8 946.5 68.6 1.8 0.0 330.4 0.0 3,161.6 Pr
Slide 41: Regional Areas: Income Statement – Other business activities and net result
3 Regional Areas and Business Units Regional Areas: Income Statement – Other business activities and net result LATAM LATAM NORTH CONSOLID. IBERIA NORTH SOUTH BRAZIL EMEA AMERICA APAC REINSURANCE ADJUST. TOTAL Results from other business activities 34.4 -0.8 0.8 6.8 -0.5 -1.8 -1.1 0.0 -69.9 -32.2 Re
Slide 42: Contents
Contents 1 Key highlights 2 Consolidated financial information 3 Regional Areas and Business Units 4 Financial supplement – Key figures 5 Schedule and contacts 42
Slide 43: Operating companies: Key figures MAPFRE FAMILIAR
4 Financial supplement Operating companies: Key figures MAPFRE FAMILIAR 6M 2013 6M 2014* U% Gross written and accepted premiums 2,114.5 2,202.9 4.2% Net premiums earned 1,648.7 1,686.3 2.3% Underwriting result 109.0 60.3 -44.7% Net financial income 42.1 80.9 92.2% Other business activities 7.7 6.5 -
Slide 44: MAPFRE FAMILIAR – Domestic business by insurance lines
4 Financial supplement Operating companies: Key figures MAPFRE FAMILIAR – Domestic business by insurance lines Motor 6M 2013 6M 2014 U% Health 6M 2013 6M 2014 U% Gross written and accepted premiums Gross written and accepted premiums 1,050.7 1,024.7 -2.5% 397.7 425.2 6.9% Net premiums earned 961.8 9
Slide 45: Operating companies: MAPFRE FAMILIAR (contd.) and MAPFRE EMPRESAS
4 Financial supplement Operating companies: Key figures MAPFRE FAMILIAR (contd.) MAPFRE EMPRESAS Other 6M 2013 6M 2014 U% 6M 2013 6M 2014 U% Gross written and accepted premiums Gross written and accepted premiums 371.2 368.7 -0.7% 99.5 99.3 -0.2% Net premiums earned 83.1 82.5 -0.7% Net premiums earn
Slide 46: Operating companies: Key figures MAPFRE VIDA
4 Financial supplement Operating companies: Key figures MAPFRE VIDA 6M 2013 6M 2014 U% Breakdown of premiums 6M 2013 6M 2014 U% Technical Reserves excluding Regular Premiums 220.5 275.6 25.0% shadow accounting 18,347.0 18,318.2 -0.2% - Agents' and other channels 139.8 131.8 -5.7% Shadow accounting a
Slide 47: Operating companies: Key figures MAPFRE VIDA
4 Financial supplement Operating companies: Key figures MAPFRE VIDA Managed savings 6M 2013 6M 2014 U% Change in funds under management(1) 6M 2013 6M 2014 Regular premiums insurance 4,657.8 5,268.7 13.1% (2) IFRS technical reserves 493.8 1,718.9 - Agents' channel and others 3,236.2 3,712.9 14.7% Var
Slide 48: Operating companies: Key figures MAPFRE AMÉRICA
4 Financial supplement Operating companies: Key figures MAPFRE AMÉRICA MAPFRE AMÉRICA (by lines) 6M 2013 6M 2014 U % Non-Life 6M 2013 6M 2014 U % Gross written and accepted premiums 4,554.9 4,582.2 0.6% Gross written and accepted premiums 3,190.1 3,315.7 3.9% Net premiums earned 3,210.8 3,215.3 0.1%
Slide 49: Operating companies: Key figures MAPFRE BRASIL
4 Financial supplement Operating companies: Key figures MAPFRE BRASIL MAPFRE BRASIL (by lines) 6M 2013 6M 2014 U% Non-Life 6M 2013 6M 2014 U% Gross written and accepted premiums 1,598.1 1,690.4 5.8% Gross written and accepted premiums 2,579.4 2,636.9 2.2% Net premiums earned 1,251.4 1,233.2 -1.5% Ne
Slide 50: Operating companies: Key figures MAPFRE INTERNACIONAL
4 Financial supplement Operating companies: Key figures MAPFRE INTERNACIONAL MAPFRE INTERNACIONAL (by lines) 6M 2013 6M 2014 U% Non-Life 6M 2013 6M 2014 U % Gross written and accepted premiums 1,334.2 1,294.6 -3.0% Gross written and accepted premiums 1,273.7 1,224.2 -3.9% Net premiums earned 1,006.6
Slide 51: Operating companies: Key figures MAPFRE USA
4 Financial supplement Operating companies: Key figures MAPFRE USA 6M 2013 6M 2014 U % Gross written and accepted premiums 795.0 790.8 -0.5% Net premiums earned 675.8 675.0 -0.1% Underwriting result -19.2 -22.0 14.6% Net financial income 67.4 50.5 -25.1% Other business activities 0.0 0.0 --- Other n
Slide 52: Operating companies: Key figures MAPFRE RE
4 Financial supplement Operating companies: Key figures MAPFRE RE MAPFRE RE (by lines) 6M 2013 6M 2014 U % Non-Life 6M 2013 6M 2014 U % Gross written and accepted premiums 1,850.6 1,885.6 1.9% Gross written and accepted premiums 1,621.4 1,555.2 -4.1% Net premiums earned 1,161.0 1,013.9 -12.7% Net pr
Slide 53: Key figures MAPFRE GLOBAL RISKS and MAPFRE ASISTENCIA
4 Financial supplement Operating companies: Key figures MAPFRE GLOBAL RISKS MAPFRE ASISTENCIA 6M 2013 6M 2014 U % 6M 2013 6M 2014 U% Gross written and accepted premiums 632.1 568.2 -10.1% Operating income 550.8 568.5 3.2% - Global Risks 593.6 527.1 -11.2% - Gross written and accepted premiums 456.4
Slide 54: Net financial income: selected information
4 Financial supplement Net financial income: selected information Breakdown of net financial income (before taxes) 6M 2013 6M 2014 U% Net financial income, Non-life 328.4 401.3 22.2% - of which realised capital gains and impairments 74.8 49.4 -33.9% - of which foreign exchange gains/(losses) 27.9 24
Slide 55: Financial result: selected information
4 Financial supplement Financial result: selected information Realisation gains, impairments and other financial results Impact on net Net realisation Other net financial financial income gains income (before taxes) 6M 2013 6M 2014 6M 2013 6M 2014 6M 2013 6M 2014 MAPFRE FAMILIAR 17.6 23.6 3.6 17.6 2
Slide 56: Contents
Contents 1 Key highlights 2 Consolidated financial information 3 Regional Areas and Business Units 4 information Financial supplement – additional 5 Schedule and contacts 56
Slide 57: Operating companies: additional information MAPFRE AMÉRICA
4 Financial supplement Operating companies: additional information MAPFRE AMÉRICA MAPFRE AMÉRICA (by lines) 3M 2013 3M 2014 U% Non-Life 3M 2013 3M 2014 U % Gross written and accepted premiums 2,166.2 2,081.7 -3.9% Gross written and accepted premiums 1,551.3 1,539.8 -0.7% Net premiums earned 1,561.7
Slide 58: Operating companies: additional information MAPFRE INTERNACIONAL
4 Financial supplement Operating companies: additional information MAPFRE INTERNACIONAL MAPFRE INTERNACIONAL (by lines) 3M 2013 3M 2014 U% Non-Life 3M 2013 3M 2014 U % Gross written and accepted premiums 662.9 647.6 -2.3% Gross written and accepted premiums 631.7 613.4 -2.9% Net premiums earned 494.
Slide 59: Contents
Contents 1 Key highlights 2 Consolidated financial information 3 Regional Areas and Business Units 4 Financial supplement 5 Schedule and contacts 59
Slide 60: 2014 Provisional Schedule
5 Schedule and contacts 2014 Provisional Schedule Release First Half 2014 Results 24-July-14 Madrid Conference Call – First Half 2014 Results Release Third Quarter 2014 Results 4-Nov-14 Madrid Conference Call – Third Quarter 2014 Results 5-Nov-14 London Presentation to analysts – Third Qua
Slide 61: Investor Relations Department
5 Schedule and contacts Investor Relations Department Luigi Lubelli Deputy General Manager – Finance +34-91-581-6071 Deputy Director Capital Markets Natalia Núñez Arana +34-91-581-8664 Head of Investor Relations Antonio Triguero Sánchez Investor Relations +34-91-581-5211 Alberto Fernández-Sanguino I
Slide 62: 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