Slide 1: Presentation of annual results MAPFRE in 2016
Antonio Huertas Presentation of annual results MAPFRE Chairman and CEO of MAPFRE February 8, 2017 in 2016
Slide 2: The accounts at a glance
2 The accounts at a glance: 775 27,092 ATTRIBUTABLE PROFIT CONSOLIDATED REVENUES + 9.4% + 1.5% 97.4% 22,813 PREMIUMS NON-LIFE COMBINED RATIO + 2.2% - 1.2 p.p Million euros
Slide 3: The accounts at a glance
3 The accounts at a glance: 67,882 11,444 TOTAL EQUITY ASSETS + 7% + 10% 58,872 ASSETS MANAGED + 5.4% Million euros
Slide 4: MAPFRE is growing in its strategic markets
A global company 4 MAPFRE is growing in its strategic markets Return to profitability RE Premiums Premiums +13.5% USA +4.5% Profit +22% 28.7% Distribution of Profit sustained (- premiums Brazil 0.8%) in crisis context 71.3% Revenues +6.6% Profit +17.7% Spain Abroad Spain Life premiums +18%
Slide 5: Premiums/Profits by region
5 Premiums Profit Premiums/Profits by region 7,139 4,587 2,902 2,571 1,922 1,343 130 +6.6% -4.7% +4.5% +29.7% -5.4% -27.4% +13.4% 582 144 80 -103 15 39 -20 +17.7% -5.9% - - -74% -11% - IBERIA BRAZIL NORTH EMEA LATAM LATAM APAC AMERICA SOUTH NORTH Million euros
Slide 6: A diversified business. Distribution of premiums
A global company 6 A diversified business. AUTOMOBILE Distribution of premiums 2015 2016 29% 29% REINSURANCE 2015 2016 2015 2016 5% 5% 15% 17% HEALTH 2015 2016 2015 2016 18% 18% 33% 31% LIFE GENERAL
Slide 7: Detailed results analysis in 2016
Fernando Mata Detailed results analysis MAPFRE CFO February 8, 2017 in 2016
Slide 8: Consolidated revenues €27,092m in 2016
8 8 17,700 Total premiums €22,813m (+2.2%) Consolidated revenues €27,092m in 2016 5,113 3,691 535 +1.5% + 1.5% + 5% - 2.1% - 6.8% NON-LIFE LIFE FINANCIAL OTHER Million euros REVENUES
Slide 9: Direct insurance by line; Premiums by business unit
9 Direct insurance by line Premiums by business unit 7,371 5,732 4,465 1,246 636 18,727 4,235 1,212 1,067 + 4% - 3%* + 5% + 2% - 2% + 1.7% + 13.5% + 3.2% - 2.5% AUTOMOBILE GENERAL LIFE HEALTH AND OTHER INSURANCE RE GLOBAL ASISTENCIA Million euros ACCIDENTS NON-LIFE RISKS *Does not include accepted r
Slide 10: Net profit €775m in 2016
Net profit 10 €775m in 2016 +9.4% Breakdown of profit +313 775 1,232 +48 -218 -560 -470 747 -173 NON-LIFE LIFE OTHER TAX EXTERNAL NET + 34% + 7% ITEMS* + 20.7% PARTNERS PROFIT Million euros - 4% *Includes other activities, holding expenses, adjustments for hyperinflation, and results of discontinued
Slide 11: Net profit by business unit
11 Net profit by business unit 720 186 47 -56 + 8.1% + 22% - 18.1% - 71.2% INSURANCE RE GLOBAL ASISTENCIA Million euros RISKS
Slide 12: Combined ratio
Combined ratio 1.2 12 percentage points 97.4% in 2016 less Combined ratio by region 94% 94.2% 100.3% 100.9% 101% 107.2% 119% IBERIA BRAZIL NORTH LATAM LATAM EMEA APAC AMERICA NORTH SOUTH
Slide 13: ROE
ROE ROE 13 8.8% in 2016 8% in 2015 ROE breakdown by country/unit 16.5% 15.2% 12.4% 11.9% 9.9% 5.7% Group ROE 8.8% NON-LIFE RE BRAZIL GLOBAL LIFE USA SPAIN RISKS SPAIN
Slide 14: Shareholders' equity
Shareholders’ equity 14 €9,127m as at December 2016 +552m. +6.4% 8,574 775 -400 218 -47 9,127 BALANCE RESULT FOR DIVIDENDS CONVERSION OTHER BALANCE 01/01/2016 PERIOD DIFFERENCES 01/01/2017 Million euros
Slide 15: Group balance sheet
15 Group balance sheet 2016 % Total assets 67,882 + 6.5% Investments & cash 48,553 + 7.1% 81% of investments are fixed income assets (€38,599m) Technical €16,950m provisions 47,993 + 4.9% of Spanish sovereign debt Million euros
Slide 16: Capital structure and Solvency
16 Capital structure Solvency Capital Solvency II ratio structure €13,646m 200%* Tier 1 84% — Equity €8,021m (93%) 4% — Subordinated debt Tier 2 €606m (7%) 7% — Senior debt 5% — Other bank debt Debt ratio *3rd Quarter 16%
Slide 17: Iberia premiums and managed savings
2016 17 Premiums Managed savings 2,165 2,111 2,005 613 259 22,510 5,291 3,208 Iberia €7,139m in premiums in 2016 +6.6% + 2.6% + 18% + 2.1% + 5.3% - 1.1% + 2.3% + 4.2% + 30% AUTOMOBILE LIFE GENERAL HEALTH OTHER LIFE PENSION MUTUAL AND NON-LIFE TECHNICAL FUNDS FUNDS ACCIDENTS PROVISIONS
Slide 18: Latin America: LATAM North and South
18 LATAM South 4,587 BRAZIL 474 425 381 323 308 - 5% + 2% - 9% + 1% - 12% - 10% LATAM SOUTH 1,922 - 5% Latin America €7,852m LATAM NORTH PERU COLOMBIA CHILE ARGENTINA OTHER 1,343 in premiums in 2016 - 27% LATAM North -9.7% 755 - 42% 216 + 7% 123 + 2% 372 + 6% MEXICO PANAMA DOMINICAN OTHER CENTRAL RE
Slide 19: International: North America, EMEA, APAC
19 NORTH AMERICA 2,902 2,539 365 890 558 335 321 46 41 +6% -5% +18% +64% +23% +128% +4% -6% + 5% 2,571 EMEA + 30% International €5,603m 130 APAC in premiums in 2016 + 13% +15%
Slide 20: Conclusions and strategy
Antonio Huertas Chairman and CEO of MAPFRE Conclusions and strategy Presentation of annual results MAPFRE February 8, 2017 in 2016
Slide 21: Highlights of 2016
21 Highlights of 2016 1 2 3 We improved We consolidated our position in Excellent year for profitability strategic markets MAPFRE RE Profits Spain Brazil USA which has showing increased its profits +9.4% very profitable growth resilience to the restoring profitability +22% crisis
Slide 22: Net profit excluding extraordinary items
22 2015 2016 Net profit 709 776 Net profit excluding extraordinary items Extraordinary 2015/2016 items CX contribution 187 Torre MAPFRE capital +41% gain 88 Goodwill write down -50 Net profit excluding extraordinary 522 738 items % variation +41% Million euros
Slide 23: Contribution to 2016 net results by entity
23 Contribution to 2016 net results by entity 538 186 140 64 47 30 30 29 13 7 -31 -52 -56 The sum of the countries exceeds €1,000m Million euros
Slide 24: As a result of all of this
24 As a result of all of this… We raised Dividend for year: 14.5 our cents per share against In total: €2,017m shareholder 2016 results, 11.5 percent more than the €446.5m paid entirely in cash to shaareholders in the Payout 57.6% remuneration previous year period 2012-2016
Slide 25: Financial strengths of the year
25 Financial strengths of the year Reduction in Solvency Improved Global Costs Position Combined Ratio (-1.2%) 200% 97.4% Quality of Low level Stock market Capital of Debt appreciation (93% Tier 1) Ratio 16% +25% (vs. -2% Ibex)
Slide 26: Strengths of the business
26 Strengths of the business Position of Leadership Profitable Currency diversification In strategic lines Investments Weight of strong currencies Multichannel Stability and structure insurance business recurrence
Slide 27: The future of our activity
27 The future of our activity We are prepared for the Innovation Autonomous cars, Big Data, approaching digital the Cloud, smart homes transformation Automation Mechanized tasks, elimination of redundancies New trends Cyber risks, manufacturers’ public liability, car sharing The client as beneficiar
Slide 28: We are prepared
28 Conclusions Our business model, and the Focus on profitable growth strategy, guarantee recurring growth over the coming years We are for the new client, market and competition prepared environments
Slide 29: Your trusted insurance company
Your trusted insurance company