Mapfre Sa · BME:MAP
Mapfre Sa — Corporación MAPFRE — Q3 2005 Earnings Presentation
40 slides from Mapfre Sa's earnings presentation, Oct 28, 2005
Slide 1: Third quarter 2005 results
Third quarter 2005 results London, 28 October 2005 1
Slide 2: Section I Key facts
Section I Key facts Section II Analysis of results Appendix Calendar and contacts 2
Slide 3: Key facts
Key facts During the third quarter of 2005, the business activities of CORPORACIÓN MAPFRE and its subsidiaries have maintained their favourable development trend overall. Against a decrease in Life – Savings premiums, growth remained strong in Life – Risk premiums, in savings managed in mutual funds
Slide 4: Key facts (ctd.)
Key facts (ctd.) The development of the key figures of CORPORACIÓN MAPFRE and its main operating Units is shown in the following table: Net Combined ratio (1) Revenues % Var. profit % Var. 3Q 05 3Q 04 CORPORACIÓN MAPFRE 6,810.8 7.3% 188.5 18.8% 96.9% 94.4% LIFE AND SAVINGS 2,134.7 -7.1% 84.5 17.0% 0
Slide 5: Key figures
Key figures 3Q 05 3Q 04 % Var. Non-Life gross written and accepted premiums 4,017.5 3,532.3 13.7% Life gross written and accepted premiums 1,390.6 1,499.6 -7.3% Total gross written and accepted premiums 5,408.1 5,031.9 7.5% Net income, group share 188.5 158.6 18.8% Total assets 27,466.9 23,581.5 16.
Slide 6: Section II Analysis of results
Section I Key facts Section II Analysis of results Appendix Calendar and contacts 6
Slide 7: Net consolidated revenues
CORPORACIÓN MAPFRE: Net consolidated revenues W ritten and accepted Income from Investments Other income Total Revenues premiums 3Q 05 3Q 04 % Var. 3Q 05 3Q 04 % Var. 3Q 05 3Q 04 % Var. 3Q 05 3Q 04 % Var. LIFE AND SAVINGS 1,296.9 1,414.3 -8.3% 761.1 828.5 -8.1% 76.7 56.0 37.0% 2,134.7 2,298.8 -7.1%
Slide 8: Breakdown of premiums in Spain by distribution channel
CORPORACIÓN MAPFRE: Breakdown of premiums in Spain by distribution channel 3Q 05 3Q 04 % Var. AGENTS CHANNEL 2,726.1 2,623.9 3.9% LIFE 706.0 749.8 -5.8% GENERAL INSURANCE 807.2 743.6 8.6% COMMERCIAL INSURANCE 876.2 823.5 6.4% HEALTH 336.7 307.0 9.7% CAJA MADRID BANK CHANNEL 708.8 762.9 -7.1% LIFE 59
Slide 9: Consolidated income statement
CORPORACIÓN MAPFRE: Consolidated income statement 3Q 05 3Q 04 % Var. NON–LIFE INSURANCE AND REINSURANCE Gross written and accepted premiums 4,017.5 3,532.3 13.7% Premiums earned, net of ceded and retroceded reinsurance 2,900.3 2,423.5 19.7% Net claims incurred and variation in other technical provis
Slide 10: Profit breakdown by units and companies – September 2005
CORPORACIÓN MAPFRE: Profit breakdown by units and companies – September 2005 Contribution to Net Minority Consolidation consolidated Result Interests adjustments result LIFE 84.5 -41.5 43.0 GENERAL INSURANCE 65.4 -31.4 -1.4 32.6 COMMERCIAL INSURANCE 56.7 -23.1 -9.6 24.0 HEALTH 8.1 -4.0 4.1 Holding (
Slide 11: Reconciliation of the consolidated profit under PGC/PCEA and IFRS
CORPORACIÓN MAPFRE: Reconciliation of the consolidated profit under PGC/PCEA and IFRS Gross Minority Attributable ITEM Tax amount Shrhldrs. result Result at 30/09/05 under PGC/PCEA 386.2 -118.1 -92.6 175.5 Reversal of goodwill amortisation 24.3 0.7 -10.2 14.8 Reversal of the appropriation to the equ
Slide 12: Statement of changes in equity
CORPORACIÓN MAPFRE: Statement of changes in equity STATEMENT OF CHANGES IN Share Valuation Translation Minority Total EQUITY capital Reserves adjusts. differences Result interests Equity Balance as at 30/06/05 119.5 1,890.6 210.4 -283.0 149.0 926.1 3,012.6 Additions and deductions -13.1 11.5 -4.8 -6
Slide 13: Life Insurance Operating Unit
LIFE INSURANCE OPERATING UNIT 3Q 05 3Q 04 % 05/04 The variation in funds under Technical Reserves 14,248.7 12,605.4 13.0% management exceeds the figure for the Investment Funds 3,088.6 2,523.5 22.4% same period of the previous year, mainly Pension Funds (1) 1,133.8 925.2 22.5% Third-party funds unde
Slide 14: Life Insurance Operating Unit: Premiums breakdown
LIFE INSURANCE OPERATING UNIT: Premiums breakdown 3Q 05 3Q 04 % 05/04 The development of premiums in the third 318.9 -7.1% Regular Premiums 296.4 quarter of the year was characterised by: - Agents channel 265.4 278.8 -4.8% - Bank channel 31.0 40.1 -22.7% – sustained growth in Life – Risk products; S
Slide 15: Life Insurance Operating Unit: Breakdown of funds under management
LIFE INSURANCE OPERATING UNIT: Breakdown of funds under management 3Q 05 3Q 04 % 05/04 Regular premiums insurance 4,458.8 3,894.6 14.5% - Agents channel 4,113.2 3,596.1 14.4% - Bank channel 345.6 298.5 15.8% Single premiums insurance 8,326.5 7,239.7 15.0% - Agents channel 3,500.6 3,050.6 14.8% - Ban
Slide 16: MAPFRE VIDA: Variation in funds under management
MAPFRE VIDA: Variation in funds under management (1) January - September 2005 2004 Life insurance technical reserves 1,164.5 722.6 > Variation under PGC/PGEA 493.0 428.7 Mutual funds 408.5 181.2 > Net sales 59.4 43.7 Pension funds 96.3 70.9 > Net sales 32.4 53.9 1) Excluding shareholders’ equity Mil
Slide 17: General Insurance Operating Unit
GENERAL INSURANCE OPERATING UNIT Net profit growth reflects: 3Q 05 3Q 04 %05/04 Premiums written and accepted 886.3 802.2 10.5% – larger business volumes; - Burial 204.5 195.7 4.5% - Other business lines 681.8 606.5 12.4% – an increase in financial income; Gross Result (1) 96.9 78.5 23.4% – the impa
Slide 18: Commercial Insurance Operating Unit
COMMERCIAL INSURANCE OPERATING UNIT 3Q 05 3Q 04 (1) % 05/04 Premiums growth reflects the winning of Premiums written and accepted 896.2 848.1 5.7% new business, which helped counter the impact of tariff competition. Gross result (2) 81.5 74.5 9.4% Net result 56.7 49.6 14.3% Equity 253.4 299.8 -15.5%
Slide 19: Commercial Insurance Operating Unit: Industrial Business
COMMERCIAL INSURANCE OPERATING UNIT: Industrial Business(1) 3Q 05 3Q 04 (2) % 05/04 In the third quarter of the year, Premiums written and accepted 802.9 756.5 6.1% premiums grew 15.1% in the SMEs - of which Life 37.8 43.8 -13.7% business and 2.8% in the Large Risks business. Excluding the Life busi
Slide 20: Commercial Insurance Operating Unit: Credit and Surety Business
COMMERCIAL INSURANCE OPERATING UNIT: Credit and Surety Business 3Q 05 3Q 04 % 05/04 MAPFRE CAUCIÓN Y CRÉDITO’S Premiums written and accepted 91.6 1.9% 93.3 business volumes only grew 1.9%, due Gross result (1) 7.8 7.6 2.6% to strong competition in credit insurance. Net result 4.8 4.4 9.1% Equity 32.
Slide 21: MAPFRE CAJA SALUD
MAPFRE CAJA SALUD 3Q 05 3Q 04 % 05/04 The substantial increase in net profit is the Premiums written and accepted 355.5 322.2 10.3% result of: - Agents network (1) 336.7 307.0 9.7% - Bank network 18.8 15.2 23.7% – premium growth, which came primarily from Gross result (2) 12.9 4.9 163.3% the Health
Slide 22: MAPFRE AMÉRICA
MAPFRE AMÉRICA 3Q 05 3Q 04 % 05/04 The result of MAPFRE AMÉRICA reflects the following factors: Premiums written and accepted 1,168.2 977.6 19.5% Gross result (1) 67.2 50.8 32.3% – sustained premiums growth, which was Net result 51.4 38.0 35.3% particularly strong in Brazil and Venezuela; Equity 742
Slide 23: MAPFRE AMÉRICA: Premiums and results by country
MAPFRE AMÉRICA: Premiums and results by country PREMIUMS RESULTS (1) Local Local Currency Currency COMPANY 3Q 05 3Q 04 % 05/04 % 05/04 3Q 05 3Q 04 % 05/04 % 05/04 VENEZUELA 189.3 147.6 28.3% 45.2% 20.0 18.6 7.5% 21.9% PUERTO RICO 185.4 166.8 11.2% 13.9% 19.1 16.2 17.9% 19.9% MEXICO 180.3 193.2 -6.7%
Slide 24: MAPFRE AMÉRICA: Key facts of the third quarter of 2005 by country
MAPFRE AMÉRICA: Key facts of the third quarter of 2005 by country Significant increases were recorded in the profits of the following subsidiaries: – MAPFRE TEPEYAC (Mexico), due to the improvement in its technical result, which is related in part with the cancellation of Motor insurance contracts i
Slide 25: MAPFRE RE
MAPFRE RE The increase in the premiums volume with 3Q 05 3Q 04 % 05/04 respect to the third quarter of 2004 is Premiums written and accepted 1,015.6 879.1 15.5% primarily due to the winning of new - of w hich Lif e 74.6 57.7 29.3% business from ceding companies outside Gross result (1) 52.2 55.9 -6.
Slide 26: MAPFRE ASISTENCIA
MAPFRE ASISTENCIA 3Q 05 3Q 04 % 05/04 The increase in the net profit reflects: Total Income 261.0 193.3 35.0% – premiums growth, particularly in the - Premiums written and accepted 189.7 131.9 43.8% Pecuniary Losses business line (€60 - Other income 71.3 61.4 16.1% million, against €43 million in th
Slide 27: Appendix
Section I Key facts Section II Analysis of results Appendix Calendar and contacts 27
Slide 28: Consolidated quarterly results
CORPORACIÓN MAPFRE: Consolidated quarterly results Ne t Re sult by Quarte r (1) Quarte rly EPS (e uros) 81.8 0.34 67.2 0.28 55.4 0.23 52.4 50.8 0.22 0.21 39.5 0.17 FIRST SECOND THIRD FIRST SECOND THIRD 2004 2005 2004 2005 1) Million euros Appendix 28
Slide 29: Profit breakdown by units and companies – September 2004
CORPORACIÓN MAPFRE: Profit breakdown by units and companies – September 2004 Contribution to Net Minority Consolidation consolidated Result Interests adjustments result LIFE 72.2 -35.4 36.8 GENERAL INSURANCE 52.8 -25.9 -0.7 26.2 COMMERCIAL INSURANCE 49.6 -19.1 -10.6 19.9 HEALTH 3.1 -1.5 1.6 Holding
Slide 30: Reconciliation of the consolidated profit under PGC/PCEA and IFRS – Sep. 2004
CORPORACIÓN MAPFRE: Reconciliation of the consolidated profit under PGC/PCEA and IFRS – Sep. 2004 Gross Minority Attributable ITEM Tax amount Shrhldrs. result Result at 30/09/04 under PGC/PCEA 298.6 -88.5 -75.0 135.1 Reversal of goodwill amortisation 24.2 -1.1 -9.6 13.6 Reversal of the appropriation
Slide 31: Expense and loss ratios by unit and company
CORPORACIÓN MAPFRE: Expense and loss ratios by unit and company COMBINED EXPENSE RATIO(1) LOSS RATIO(2) RATIO(3) COMPANY 3Q 05 3Q 04 3Q 05 3Q 04 3Q 05 3Q 04 GENERAL INSURANCE OP. UNIT 27.9% 28.7% 64.3% 63.0% 92.2% 91.7% MAP. EMPRESAS + MAP. INDUSTRIAL 16.5% 13.3% 75.7% 73.2% 92.2% 86.5% MAPFRE CAUCI
Slide 32: Balance sheet
CORPORACIÓN MAPFRE: Balance sheet 3Q 05 3Q 04 % Var. ASSETS Goodwill 613.1 510.9 20.0% Fixed assets 472.9 395.8 19.5% Investments 20,811.1 17,971.3 15.8% Participation by reinsurance in technical reserves 1,341.7 1,118.4 20.0% Other assets 4,228.1 3,585.1 17.9% TOTAL ASSETS 27,466.9 23,581.5 16.5% L
Slide 33: Breakdown of reserves and premiums
CORPORACIÓN MAPFRE: Breakdown of reserves and premiums W ritten and Life insurance reserves Other technical reserves Technical Reserves accepted premiums 3Q 05 3Q 04 % Var. 3Q 05 3Q 04 % Var. 3Q 05 3Q 04 % Var. 3Q 05 3Q 04 % Var. LIFE 14,036.7 12,406.0 13.1% 212.0 199.3 6.4% 14,248.7 12,605.4 13.0%
Slide 34: Breakdown of equity by units and subsidiaries
CORPORACIÓN MAPFRE: Breakdown of equity by units and subsidiaries Equity 30/09/05 30/09/04 Share of Share of % Var. Minority Minority Minority Corp. Mapfre shrhldrs. Corp. Mapfre shrhldrs. Corp. Mapfre shrhldrs. LIFE 272.4 261.8 242.7 233.2 12.2% 12.3% GENERAL INSURANCE 156.0 149.9 138.8 133.4 12.4%
Slide 35: SISTEMA MAPFRE: Consolidated income statement
SISTEMA MAPFRE: Consolidated income statement 3Q 05 3Q 04 % Var. NON–LIFE INSURANCE AND REINSURANCE Gross written and accepted premiums 5,944.0 5,274.1 12.7% Premiums earned, net of ceded and retroceded reinsurance 4,708.9 4,079.0 15.4% Net claims incurred and variation in other technical provisions
Slide 36: Organisation chart
CORPORACIÓN MAPFRE: Organisation chart MAPFRE MUTUALIDAD 56% CORPORACIÓN MAPFRE 51% 100 % 87 % 88% 100% MAPFRE MAPFRE MAPFRE MAPFRE MAPFRE CAJA MADRID HOLDING INMUEBLES AMÉRICA RE ASISTENCIA MAPFRE Direct Subsidiaries, Subsidiaries, 100% 100% SEGUROS MAPFRE VIDA Insurance branches and branches, GENE
Slide 37: Calendar and contacts
Section I Key facts Section II Analysis of results Appendix Calendar and contacts 37
Slide 38: Provisional calendar for the year 2005
Provisional calendar for the year 2005 09/02/05 Release of year 2004 results 09/02/05 Analysts' presentation, year 2004 results - Madrid 10/02/05 Analysts' presentation, year 2004 results - London 26/02/05 Annual General Meeting 27/04/05 Release of first quarter 2005 interim results 27/04/05 Analyst
Slide 39: Investor Relations Department
Investor Relations Department Luigi Lubelli Finance Director +34-91-581-6071 Beatriz Izard Pereda +34-91-581-2061 Antonio Triguero Sánchez +34-91-581-5211 Marisa Godino Alvarez Assistant +34-91-581-2985 CORPORACIÓN MAPFRE, S.A. Investor Relations Department Carretera de Pozuelo, nº 52 28220 Majadaho
Slide 40: 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