Slide 1: Presentation of Annual Results
ANTONIO HUERTAS PRESENTATION OF ANNUAL RESULTS FEBRUARY 8, 2018 MAPFRE
Slide 2: 2017 Key Points
2 2017 KEY POINTS COMMITMENT TO SHAREHOLDERS: €0.145 per share. €447m in total, giving a payout of 64% BEST Q4 IN MAPFRE’S HISTORY: €256m in NET EARNINGS AN EXCELLENT YEAR
Slide 3: Catastrophic Events of Q3 2017
3 CATASTROPHIC EVENTS of Q3 2017 NET IMPACT: €156.8m Effectiveness of catastrophic protections THE VALUE OF COMMITMENT: Payments of +€1,000m
Slide 4: 2017 Key Points: Focus on Profitable Growth
4 2017 KEY POINTS FOCUS ON PROFITABLE GROWTH EXCELLENT SPAIN: RE RELEVANT RISK IN TOP GEAR OUTDOES ITSELF IMPROVEMENTS MANAGEMENT ONCE AGAIN LATAM SOUTH Earnings up 4x EARNS €163m EURASIA earns €39m Topping out an PREMIUMS +4% despite catastrophic (vs. €69m loss in 2016) historic year of events cata
Slide 5: The Figures at a Glance
5 THE FIGURES AT A GLANCE ATTRIBUTABLE PROFIT NON-LIFE COMBINED RATIO 701 98.1% -9.7% + 0.7 p.p PREMIUMS 96.9% (-0.5 p.p.) w/o cat. 23,481 +4.1% at +2.9% constant exchange rates ROE CONSOLIDATED REVENUES 7.9% 27,984 -0.9 p.p +3.3% 9.2% (+0.5 p.p.) w/o cat. Millions of euros
Slide 6: Premiums/Earnings by Business Area
6 PREMIUMS/EARNINGS BY BUSINESS AREA PREMIUMS NET EARNINGS INSURANCE 19,376 +3.7% RE 829 4,222 x10 vs 2016 INTERNATIONAL 88 -0.3% LATAM 229 +19% IBERIA 512 163 -66 -68 GLOBAL RISKS ASISTENCIA 1,257 +12.6% -12.6% - -21.4% 984 +3.7% INSURANCE RE GLOBAL ASISTENCIA -7.8% RISKS Millions of euros Data not
Slide 7: Insurance Unit Premiums by Region
7 INSURANCE UNIT PREMIUMS BY REGION PREMIUMS 19,376 6,960 +3.7% 4,547 2,529 1,870 1,772 1,699 +3.8% +3.5% -3.6% -5.1% +39.6% -1.4% IBERIA BRAZIL NORTH AMERICA EURASIA LATAM LATAM NORTH SOUTH Millions of euros
Slide 8: A Diversified Business: Distribution of Premiums
8 A DIVERSIFIED BUSINESS DISTRIBUTION OF PREMIUMS AUTOMOBILE HEALTH 31% (32%) 5% (6%) LIFE 20% (20%) GENERAL P&C 27% (25%) REINSURANCE 25% (26%) (%) Previous year Data not consolidated for adjustments
Slide 9: Key Financial Aspects
FERNANDO MATA KEY FINANCIAL ASPECTS FEBRUARY 8, 2018
Slide 10: Revenue and Premiums
10 REVENUE AND PREMIUMS CONSOLIDATED REVENUES 27,984 +3.3% 18,155 18.155 5,326 5.326 2,802 2.802 1,701 1.701 + 2.6% + 4.2% - 8.3% + 39.1% NON-LIFE LIFE FINANCIAL OTHER INCOME TOTAL PREMIUMS (LIFE / NON-LIFE) €23,481 in 2017 +2.9% Millions of euros
Slide 11: Earnings Breakdown
11 EARNINGS BREAKDOWN NET EARNINGS €701m -9.7% 946 720 701 -157 -410 -398 -23.2% + 3.6% + 9.6% -26.7% - 15.3% NON-LIFE LIFE OTHER CONCEPTS* TAXES NON- NET EARNINGS CONTROLLING INTERESTS Millions of euros *Includes other activities, Holding costs and hyperinflation adjustments
Slide 12: Catastrophic Events in 2017
12 NET COST CATASTROPHIC EVENTS IN 2017 €184 million net impact €1,050 million worth of benefit on the Group payments committed to clients Millions of euros. Updated as at December 2017
Slide 13: Breakdown of ROE by Country / Unit
13 BREAKDOWN OF ROE BY COUNTRY / UNIT ROE PAÍSES / UNIDADES GROUP ROE 9.2% w/o cat. 7.9% 13.2% 12.9% 12.6% 10.6% 6.5% 6.0% 4.6% LATAM SPAIN RE BRAZIL EURASIA USA LATAM SOUTH NORTH
Slide 14: Regional Combined Ratios
14 REGIONAL COMBINED RATIOS GROUP COMBINED RATIO 96.9% +98.1% w/o cat. 90.8% Auto 93.7% 94.8% 96.1% 96.9% 98% 100.9% 104.9% IBERIA MAPFRE BRAZIL LATAM LATAM EURASIA NORTH RE SOUTH NORTH AMERICA Non-Life combined ratio trend is improving in Iberia, LATAM South, LATAM North and EURASIA
Slide 15: Shareholder's Equity
15 SHAREHOLDER’S EQUITY €8,611m at December 2017 -€515m -5.6% 9,126 701 -447 -639 -130 8,611 BALANCE RESULT FOR CONVERSION BALANCE DIVIDENDS OTHER 01/01/2017 THE PERIOD DIFFERENCES 01/01/2018 Millions of euros
Slide 16: Group Overview: Technical Provisions and Investments
16 GROUP OVERVIEW TECHNICAL TOTAL INVESTMENTS PROVISIONS ASSETS & CASH +1.2% -0.5% 47,814 67,570 49,796 84% FIXED INCOME AND OTHER 4% CASH 4% REAL ESTATE 8% VARIABLE INCOME AND FUNDS €27,388m in soverign debt €292m in alternative investments Millions of euros
Slide 17: Capital and Solvency
17 CAPITAL AND SOLVENCY CAPITAL SOLVENCY STRUCTURE €12,840m SOLVENCY II RATIO 189%* EQUITY 82% SENIOR DEBT 8% Tier 1 €8,071m (93%) SUBORDINATED DEBT 5% 5% Tier 2 €607m (7%) OTHER BANK DEBT DEBT LEVEL 18% *Q3
Slide 18: Iberia: 6,960 in Premiums
18 BREAKDOWN OF INSURANCE BUSINESS REGIONAL PREMIUMS IBERIA SPAIN: THE GROWTH ENGINE 6,960 IN PREMIUMS +4% 2,190 2,176 1,636 6,821 608 +4 % +3.5% +5.2% +2.8% +3.9% AUTO LIFE GENERAL HEALTH P&C AND ACCIDENT GROWTH 140 AUTOMOBILE MARKET 3.4% MAPFRE 3.8% RANKING 1 -0.4% HOMEOWNERS 3.0% 1.9% 1 CORPORATE
Slide 19: Latin America: 8,018 in Premiums
19 BREAKDOWN OF INSURANCE BUSINESS REGIONAL PREMIUMS LATIN AMERICA 8,018 +9% LATAM NORTH IN PREMIUMS 1,183 +65% 218 125 73 LATAM +4% +6% -2% NORTH +40% MEXICO PANAMA DOMINICAN HONDURAS 1,772 REP. 1,699 LATAM SOUTH 4,547 LATAM 470 394 SOUTH +1% -2% 307 292 BRAZIL -1% -16% +4% +4% Millions of euros PE
Slide 20: Brazil: Business Strengths
20 BUSINESS STRENGTHS LIFE 1,551 +1.8% 2,996 +4.4% 1,787 NON-LIFE 1,205 -2.2% +9.5% BRAZIL AUTO GENERAL P&C Millions of euros
Slide 21: International: 4,398 in Premiums
21 BREAKDOWN OF INSURANCE BUSINESS REGIONAL PREMIUMS INTERNATIONAL 4,398 IN PREMIUMS -4% 2,529 2,202 -3% 1,870 653 471 -22% 351 327 311 +1% 40 -4% -5% +6% -10% +7% 44 - -6% NORTH EURASIA USA TURKEY ITALY MALTA PUERTO GERMANY INDONESIA PHILIPPINES AMERICA RICO Millions of euros
Slide 22: Stock Market Performance
22 STOCK MARKET PERFORMANCE MAPFRE S.A. IBEX 35 DJ STOXX INSURANCE 2017 2016+2017 7,4% +6,9% MAPFRE -7.7% +15.8% -7,7% Jan Feb Mar April May June July Aug Sept Oct Nov Dec 2017 IBEX 35 +7.4% +5.3% MARKET CAPITALIZATION 8,247 DJ Stoxx Insurance +6.9% +1% at 12-31-17 Millions of euros
Slide 23: Conclusions
hay ANTONIO HUERTAS ay sate CONCLUSIONS PRESENTATION OF ANNUAL RESULTS FEBRUARY 8, 2018
Slide 24: We Maintain Our Shareholder Remuneration
24 THE RESULT OF ALL OF THIS IS… WE MAINTAIN OUR SHAREHOLDER REMUNERATION DIVIDEND FOR THE YEAR: €0.145 per share against the 2017 results. In total: €447m A PAYOUT €2,464m distributed to OF 64% IN shareholders, 2017 all of it in cash, from 2012-2017
Slide 25: Financial Strengths from the Period
25 FINANCIAL STRENGTHS FROM THE PERIOD FITCH RATING SOLVENCY POSITION QUALITY INSURER STRENGTH - 189% OF CAPITAL `A´ (93% TIER 1) DEBT RATIO EXCELLENT TECHNICAL RESULT LEVEL 18% INTERNAL COST RATIO COMBINED RATIO 4.4% 96.9% (w/o cat.)
Slide 26: Updating of the Strategic Alliance with Banco do Brasil
26 BUSINESS STRENGTHS UPDATING OF THE STRATEGIC ALLIANCE WITH BANCO DO BRASIL IN THE INSURANCE BUSINESS MAPFRE would be the sole MAPFRE would control 100% shareholder of the agency of the automobile and large channel companies. risks insurance businesses in the bank channel. MAPFRE’s exclusive produ
Slide 27: What Does the Agreement Represent for MAPFRE?
27 WHAT DOES THE AGREEMENT REPRESENT FOR MAPFRE? Significantly enhances shareholding in the Brazil business. Increases earnings contribution of its local business. Simplifies the execution of MAPFRE’s strategy in Brazil. Boosts the MAPFRE brand in Brazil. Consolidates as the no. 2 Non-Life company i
Slide 28: Conclusions
28 CONCLUSIONS 2017: A positive year in a very complex environment. Financial strength and prudent management underpinned commitment to shareholders. Focus on profitable growth beginning to bear fruit outside Iberia. A satisfactory 2017, and confidence in the future.
Slide 29: MAPFRE
MAPFRE