Mapfre Sa · BME:MAP
Mapfre Sa — FY2022 Earnings Presentation
28 slides from Mapfre Sa's earnings presentation, Feb 9, 2023
Slide 1: 12M 2022 Results Analyst & Investor presentation
12M 2022 Results Analyst & Investor presentation February 9th, 2023
Slide 2: Implementation of 2022-24 Strategic Plan on track and delivering results
Implementation of 2022-24 Strategic Plan on track and delivering results . . . DISCIPLINED GROWTH RESILIENT PROFITABILITY EXCELLENCE & EFFICIENCY €29.5 BN RECORD REVENUES NON-LIFE CoR 98% WITH 8.4% ROE +8.7%* PREMIUMS adusted for non-operating impacts EXPENSE RATIO 27.4% IBERIA +2.5%* (-1.9 P.P. YOY
Slide 3: Despite a challenging market context
. . . despite a challenging market context MAPFRE has faced many challenges . . . supported by a solid business model and during 2022 . . . balance sheet strength Diversification based on three pillars: Covid-19 post-pandemic environment geography, product and balance sheet Inflation and supply chai
Slide 4: 2022 highlights
2022 highlights We have met significant milestones in 2022 … ⁻ Solid premium growth – resilient trends in Spain, strong performance in LATAM and rising reinsurance rates ⁻ Strong profit contribution from IBERIA (>€375 mn) despite difficult Motor context ⁻ Turnaround in LATAM with >€300 mn (+€145 mn
Slide 5: Key Figures > 12M 2022
Key Figures > 12M 2022 Δ on a like for like 12M 2022 Δ (1) Premium growth 10.8% basis Currency movements -5.3% Total written and accepted premiums 24,540 10.8% 8.7% Multi-year policy (Mexico) 2.4% - Non-Life 19,342 12.0% 10.2% BANKIA 0.8% - Life 5,199 6.4% 3.3% Premium growth (like for like) 8.7% No
Slide 6: Adjusted attributable result & extraordinary impacts
Adjusted attributable result & extraordinary impacts 12M 2021 12M 2022 Δ (mn) Δ (%) Attributable result 765.2 642.1 (123.1) -16.1% (1) Impacts from hyperinflationary economies (12.5) (41.2) (28.7) Other non-operating extraordinary impacts (2) 62.6 18.5 (44.1) Attributable result (adjusted for non-op
Slide 7: Key figures > by business unit
Key figures > by business unit Premiums Attributable result Combined ratio 12M 2022 Δ% 12M 2022 Δ mn Δ% 12M 2022 Δ p.p. IBERIA 7,626 0.4% 375.5 (165.2) -30.6% 96.8% -1.3 p.p BRAZIL 4,852 45.3% 143.7 69.4 93.5% 86.9% -0.8 p.p LATAM NORTH 2,117 -3.2% 45.9 19.1 71.4% 98.3% 2.4 p.p LATAM SOUTH 2,007 23.
Slide 8: Key figures > Motor business
Key figures > Motor business Premiums Δ in insured units YTD Attributable result 12M 2021 12M 2022 Δ% (thousands) 12M 2021 12M 2022 MAPFRE GROUP 5,388 5,912 9.7% -1,123 -7.4% 145.9 -57.3 IBERIA 2,259 2,267 0.4% 4 0.1% 65.6 15.1 NORTH AMERICA 1,282 1,495 16.6% 22 1.6% 59.9 -51.3 BRAZIL 461 623 35.1%
Slide 9: Key figures > Life business > insurance units
Key figures > Life business > insurance units Key figures 12M 2022 Δ mn YoY Δ YoY Life Premiums 5,198.5 311.0 6.4% IBERIA 1,915.5 (182.1) -8.7% COVID claims – Life Protection – breakdown (3) BRAZIL 1,505.0 350.4 30.3% OTHER (1) 1,778.0 142.8 8.7% Life Attributable Result 308.9 125.6 68.5% 12M 12M Δ
Slide 10: MAPFRE RE > Key highlights
MAPFRE RE > Key highlights ⁻ Strong growth on the back of positive rate momentum for 2022, Premiums +15.1% increased shares on profitable business and continued good ➢ Reinsurance +13.6% performance at Global Risks. Tailwinds from exchange rates. ➢ Global Risks +20.9% ⁻ Resilient result despite mate
Slide 11: MAPFRE RE > moving forward
MAPFRE RE > moving forward Market environment ⁻ Late and complex renewal period ⁻ Substantial hardening after a prolonged period of underperformance in reinsurance industry ⁻ Firm pricing environment, substantial review of reinsurance structures and coverage definitions ⁻ Limited capacity, especiall
Slide 12: Assets under management
Assets under management Breakdown by Market value Asset Class 12.31.2021 12.31.2022 %Δ 1 12.31.2022 Government fixed income 22.9 19.8 -13.5% 47.8% Spain 12.0 8.9 -26.1% 21.5% Italy 2.8 2.4 -13.9% 5.9% Rest of Europe 1.9 1.8 -3.6% 4.3% United States 1.5 1.0 -34.4% 2.4% Brazil 2.2 2.7 26.0% 6.6% Rest
Slide 13: Investment portfolios
Investment portfolios Euro area – fixed income portfolios – actively managed Market value Accounting Market yield Modified (€bn) Yield (%) (%) duration (%) 12.31.2021 3.97 2.08 0.69 10.93 IBERIA NON-LIFE* 12.31.2022 3.00 2.16 3.60 8.97 12.31.2021 3.18 1.28 0.69 3.78 MAPFRE RE NON-LIFE 12.31.2022 3.2
Slide 14: Shareholders' equity
Shareholders’ equity Currency conversion differences Sensitivity to +1 12.31.2022 Δ % Δ currency pp move in Change in shareholders’ equity currency Total -1,433 ** 343 Δ Year to of which: Date US dollar 601 142 6.6% 22 Balance at beginning of period 8,463 Brazilian real -857 83 12.3% 7 Mexican peso
Slide 15: Capital position & credit metrics
Capital position & credit metrics Capital structure (€ bn) Solvency II position (€ mn) 09.30.2022 Leverage (1) Eligible Own Funds (EOF) 9,836 24.2% 26.0% Solvency Capital Requirement (SCR) 4,537 12.8 11.3 1.1 Total debt EOF-SCR 5,299 0.9 3.1 0.4 1.1 2.9 0.9 Solvency II ratio 216.8% 1.6 Fully loaded
Slide 16: Dividend upstreaming
Dividend upstreaming Supported by core units with solid underlying results Dividends upstreamed from subsidiaries (mn€) 2021 2022 ⁻ Healthy cash flow generation SPAIN 346 813 ⁻ 2022 excess capital upstreamed from IBERIA of which: through extraordinary dividends: MAPFRE ESPAÑA 228 393 ⁻ MAPFRE VIDA:
Slide 17: IFRS 17&9 Update > timeline and proposed disclosure
IFRS 17&9 Update > timeline and proposed disclosure 2023 2024 January 1st April/May July October February Q1 reporting (activity Q2 reporting (activity Q3 reporting (activity Q4 reporting (activity Go live report* under LAAS) report* under Local report* under LAAS) report* under LAAS) Adjusted Accou
Slide 18: IFRS 17&9 Update > potential impacts
IFRS 17&9 Update > potential impacts Shareholder’s Equity ⁻ Broadly stable at transition Balance sheet ⁻ Traditional Life Savings products, Burial business, as well as accepted and CSM retroceded reinsurance will be valued under BBA ⁻ Group earning power expected to remain unchanged post transition
Slide 19: 2022-2024 Strategic Plan > meeting targets in an extremely challenging market
2022-2024 Strategic Plan > meeting targets in an extremely challenging market 2022-24 Status 2022-24 Status Target 2022 Target 2022 Premium growth Reference framework (ave. 2022-24) 5%-6% +8.7% Payout >50% 70% On a like-for-like basis ROE Solvency Ratio (ave. 2022-24) 9%-10% ≈ 8.4% 175%-225% 216.8%
Slide 20: Aspirational targets > Strategic Plan 2022-2024 update
Aspirational targets > Strategic Plan 2022-2024 update GROWTH EFFICIENCY TRANSFORMATION: AND PRODUCTIVITY PEOPLE AND SUSTAINABILITY PREMIUMS NON-LIFE Average growth for remainder of the COMBINED RATIO GENDER period (2023-2024) PAY GAP We expect growth to be Outlook updated with respect to the 94%-95
Slide 21: Closing remarks
Closing remarks 2022-24 Strategic Plan is being implemented and is on track with robust growth and resilient profitability during 2022 Diversification will continue to be key in a challenging market context IBERIA will continue to be an important contributor to profitability In LATAM positive trends
Slide 22: Annex
Annex 22 MAPFRE
Slide 23: Annex: breakdown adjusted attributable result
Annex: breakdown adjusted attributable result 12M 2021 12M 2022 Δ (mn) Q1 2022 Q2 2022 Q3 2022 Q4 2022 Attributable result 765.2 642.1 (123.1) 154.5 183.1 150.8 153.7 Impacts from hyperinflationary economies (1) (12.5) (41.2) (28.7) (2.3) (6.0) (27.6) (5.3) (2) Other non-operating extraordinary impa
Slide 24: Annex: IFRS 17 – Valuation approaches
Annex: IFRS 17 – Valuation approaches Based on technically defined directives, MAPFRE believes that, in general, it will assess insurance and reinsurance Assesses fulfillment cash flows using a dynamic calculation, updating contracts as follows: Building hypotheses with each calculation, and recogni
Slide 25: Annex: IFRS 17&9 – Valuation approaches and options taken
Annex: IFRS 17&9 – Valuation approaches and options taken Valuation approach Type of product Liability Asset Remarks Burial ≈100% Fixed Income portfolios If durations and yields are Building Block Life matched Variations in yield curve (risk-free measured at FVOCI with recycling matched, there will
Slide 26: Investor Relations
Investor Relations For further information, please contact or visit: Email: IR@mapfre.com Telephone: (+34) 91 581 23 18 Corporate website: www.mapfre.com Financial documentation center: www.mapfre.com/en/financial-information/ Felipe Navarro Leandra Clark Marta Sanchidrián Leslie Hoffman Natalia Cha
Slide 27: Terminology
Terminology Combined ratio – Non-Life Expense ratio + Loss ratio Expense ratio – Non-Life (Operating expenses, net of reinsurance – other technical revenue + other technical expenses) / Net premiums earned Loss ratio – Non-Life (Net claims incurred + variation in other technical reserves + profit sh
Slide 28: 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