Slide 1: Nine months 2014 results
Nine months 2014 results Presentation for investors and analysts 5th November 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 Business growth, underpinned by the stability of the combined ratio and the strength of the financial results Revenues 19,792.7 1.6% Premiums 16,857.0 1.8% Managed savings 37,733.8 13.6% Non-life combined ratio 95.8% 0.5 p.p. ROE 9.2% 0.4 p.p. Shareholders' equity per share 2.91 11.
Slide 4: Highlights of the results
1 Key highlights Highlights of the results Business growth mainly stemming from sustained development in Brazil, recovery in issuance in Spain and growth of the Reinsurance and Assistance businesses, along with the positive impact of the appreciation of the US dollar and other currencies The combine
Slide 5: Recovery of the Spanish economy
1 1Q08 2.5 0.6 3Q08 -1.3 -4.2 1Q09 -5.3-5.3 Source: INE, Bloomberg 3Q09 -3.0 Key highlights -1.7 1Q10 -0.4 1.2 y-o-y growth (%) 3Q10 -0.3 0.0 0.1 1Q11 Consumer spending – 3Q11 -1.0-1.0 -2.7 1Q12 -1.8 -3.1 3Q12 -2.8 1Q13 -3.6 -4.2 -3.0 3Q13 -1.8 Recovery of the Spanish economy 0.7 1Q14 1.7 2.4 0 10 2
Slide 6: Rigorous underwriting policy…
1 Key highlights Rigorous underwriting policy… Average premium evolution of Motor Insurance in Spain – variation 2007-2013 (data rebased to 100) The average premium in the 105 Market MAPFRE FAMILIAR market has declined by 19.2% since 2007, whereas MAPFRE FAMILIAR’s average premium has only decreased
Slide 7: …which strengthens MAPFRE's competitive position
1 Key highlights …which strengthens MAPFRE’s competitive position, as it was the case in similar market environments Combined ratio and market share 1989-2014 – Motor Insurance in Spain During the periods 1989-1996 and 2000-2005, the market raised prices and its combined ratio fell, whereas MAPFRE’s
Slide 8: Excellent performance of the Brazilian business
1 Key highlights Excellent performance of the Brazilian business, which is growing above the market Premium growth – y-o-y (%) 39.2% Market BB - MAPFRE 16.9% 14.6% 9.2% 9.8% 9.6% 7.7% 3.8% Total* Motor Life-Protection P&C Ranking No.1 No.2 No.1 No.1 Market Share 18.1% 14.8% 20.4% 20.2% 8 (*) Total m
Slide 9: Acquisition of Direct Line's operations in Germany and Italy
1 Key highlights At the end of September, MAPFRE announced the acquisition of Direct Line’s operations in Germany and Italy for €550 million • International diversification • Development of direct insurance Alignment with • Focus on Motor and Home segments MAPFRE’s strategy • Search for operational
Slide 10: Interim dividend increases by 20%
1 Key highlights The interim dividend increases by 20% with respect to the previous year to 6 cents per share The Board of Directors has resolved to pay an interim dividend against the 2014 results of €0.06 gross per 2014 Interim share. dividend Thus, the total dividend paid in the year amounts
Slide 11: Contents
Contents 1 Key highlights 2 Consolidated financial information 3 Regional Areas and Business Units 4 Financial supplement 5 Schedule and contacts 11
Slide 12: Consolidated income statement
2 Consolidated financial information Consolidated income statement 9M 2013 9M 2014 U% NON-LIFE INSURANCE AND REINSURANCE Gross written and accepted premiums 12,434.7 12,552.9 1.0% Premiums earned, net of ceded and retroceded reinsurance 9,930.5 9,818.6 -1.1% Net claims incurred and variation in othe
Slide 13: Development of Non-Life insurance results
2 Consolidated financial information Development of Non-Life insurance results Non-Life Account 9M 2013 9M 2014 U% Gross written and accepted premiums 12,434.7 12,552.9 1.0% Underwriting result 464.2 414.9 -10.6% Net financial and other non-technical income 478.0 598.9 25.3% Result of Non-life busin
Slide 14: Development of Non-Life insurance results: key highlights
2 Consolidated financial information Development of Non-Life insurance results: key highlights In cumulative terms, premiums increase with respect to the previous year, mainly thanks to the sustained growth of the international business, especially in Brazil, as well as to the recovery in issuance
Slide 15: Development of Non-Life insurance results: key highlights
2 Consolidated financial information Development of Non-Life insurance results: key highlights Year-on-year, the increase in revenues reflects: Net financial and other 9 Larger investment realisation gains, net of impairments, which amounted to €147.2 non-technical million (€79.8 million in 2013)
Slide 16: Development of Life Assurance results
2 Consolidated financial information Development of Life Assurance results Life Account 9M 2013 9M 2014 U% Gross written and accepted premiums 4,124.0 4,304.1 4.4% Underwriting and financial result 342.8 479.0 39.7% Unrealised gains from unit-linked investments(1) 85.4 78.8 -7.7% Result of Life busi
Slide 17: Development of Life Assurance results: key highlights
2 Consolidated financial information Development of Life Assurance results: key highlights 4.4% increase against the same period of previous year, mainly thanks to new business in Spain, in reinsurance and in Brazil Significant growth in new mutual and pension fund business in the agents’ channe
Slide 18: Development of results from Other Business Activities
2 Consolidated financial information Development of results from Other Business Activities Other Business Activities (1) 9M 2013 9M 2014 U% Operating revenues 388.9 390.4 0.4% Operating expenses -377.7 -391.9 3.8% Net financial income & other -68.1 -58.3 -14.4% Results from Other -56.9 -59.8 5.1% Bu
Slide 19: Consolidated result
2 Consolidated financial information Consolidated result 9M 2013 9M 2014 U% Result on restatement of financial accounts -26.3 -57.9 120.2% Result before tax and minority interests 1,287.2 1,453.9 13.0% Taxes -353.3 -435.4 23.2% Result after tax 933.9 1,018.5 9.1% Result after tax from discontinued o
Slide 20: Development of the consolidated result: key highlights
2 Consolidated financial information Development of the consolidated result: key highlights Pre-tax result 13% increase with respect to the previous year, driven by the growth in business volumes and larger financial income Taxes The tax rate increases, mainly as a consequence of the profit grow
Slide 21: Development of the balance sheet
2 Consolidated financial information Development of the balance sheet 30.09.13 31.12.13 30.09.14 Goodwill 2,098.5 1,928.4 1,994.2 Other intangible assets 2,107.5 1,969.5 1,973.3 Other fixed assets 326.0 326.2 317.0 Cash & equivalents 1,363.2 1,162.8 1,163.5 Investments & real estate 39,664.9 39,212.
Slide 22: 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’ 9 larger business volumes equity & reserves 9 the strong increase in the market value of the investment portfolio in Spain 9
Slide 23: Development of equity
2 Consolidated financial information Development of equity Shareholders' Minority TOTAL TOTAL Equity interests 9M 2014 9M 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 1,668.8 334.2 2,003.0
Slide 24: 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 of the appreciation, ma
Slide 25: Contents
Contents 1 Key highlights 2 Consolidated financial information 3 Regional Areas and Business Units 4 Financial supplement 5 Schedule and contacts 25 The information shown below reflects the new operational structure in force since 1st January 2014, which has been organised into Territorial and Regio
Slide 26: Larger contribution of Brazil and reinsurance to consolidated results
3 Regional Areas and Business Units Larger contribution of Brazil and of the reinsurance business to consolidated results Premiums(1) Contribution to consolidated results Iberia 32% Other regions 68% Iberia 45% Other regions 55% EUR M % MAPFRE RE APAC 2,740.8 (15.1%) IBERIA 341.3 44.9% 67.5 (0.4%) B
Slide 27: Written premiums by Regional Areas
3 Regional Areas and Business Units Written premiums by Regional Areas Cumulative figures Quarterly figures REGIONAL AREA 9M 2013 9M 2014 U% IBERIA 5,631.4 5,691.3 1.1% U % o/ U % o/ BRAZIL 3,924.6 4,076.0 3.9% REGIONAL AREA 3Q 2013 2Q 2014 3Q 2014 2Q 2014 3Q 2013 IBERIA 1,345.5 1,671.2 1,393.1 -16.
Slide 28: Attributable results by Regional Areas
3 Regional Areas and Business Units Attributable results by Regional Areas Cumulative figures Quarterly figures REGIONAL AREA 9M 2013 9M 2014 U% IBERIA 352.2 341.3 -3.1% U % o/ U % o/ BRAZIL 84.5 103.9 23.0% REGIONAL AREA 3Q 2013 2Q 2014 3Q 2014 2Q 2014 3Q 2013 IBERIA 98.7 123.7 114.0 -7.8% 15.5% LA
Slide 29: 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) 9M 2013 9M 2014 U % 9M 2013 9M 2014 U % IBERIA 5,631.4 5,691.3 1.1% 573.8 599.9 4.5% SPAIN 5,515.3 5,542.2 0.5% 569.7 599.6 5.2% PORTUGAL 116.2 149.1 28.3% 4.1 0.3 -92.7% Q
Slide 30: Information by Regional Areas and countries - IBERIA
3 Regional Areas and Business Units Information by Regional Areas and countries - IBERIA The increase in business volumes, with respect to the same period of the previous year, reflects: 9 in Non-Life, growth in Health insurance and recovery in Motor and Professional Civil Liability lines, which o
Slide 31: 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 % local U % local 9M 2013 9M 2014 U% currency(2) 9M 2013 9M 2014 U% currency(2) BRAZIL 3,924.6 4,076.0 3.9% 15.5% 384.8 543.8 41.3% 61.3% LATAM SOUTH 2,169.4 2,095.3 -3.4%
Slide 32: 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/ 3Q 2013 2Q 2014 3Q 2014 2Q 2014 3Q 2013 3Q 2013 2Q 2014 3Q 2014 2Q 2014 3Q 2013 BRAZIL 1,248.6 1,531.4 1,370.5 -10.5% 9.8% 126.2 190.1 202.7 6.6%
Slide 33: Information by Regional Areas and countries - LATAM
3 Regional Areas and Business Units Information by Regional Areas and countries - LATAM BRAZIL 9 Y-o-y growth in the Life Assurance, Agricultural & Livestock and Industrial Risks lines, which made up for the decrease in MAPFRE GLOBAL RISKS’ premiums, due to timing differences in the issuance of seve
Slide 34: 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 as a consequence of the strong depreciation of the ARS against the EUR (-36.1%) (1). In the quarter, significant growth (+32%) in Motor insurance in local currency. 9 Increase i
Slide 35: Information by Regional Areas and countries - LATAM
3 Regional Areas and Business Units Information by Regional Areas and countries - LATAM LATAM NORTH Mexico 9 Premium growth y-o-y – despite the depreciation of the MXN against the EUR (-5.8%) (1) – driven by the Life, Health and Motor lines. In the quarter, contraction in issuance in General Insur
Slide 36: Information by Regional Areas and countries - INTERNATIONAL
3 Regional Areas and Business Units Information by Regional Areas and countries - INTERNATIONAL Cumulative figures PREMIUMS RESULTS(1) U % local U % local (2) 9M 2013 9M 2014 U% currency 9M 2013 9M 2014 U% currency(2) NORTH AMERICA 1,555.1 1,573.5 1.2% 99.0 63.7 -35.7% of which: USA 1,324.3 1,342.9
Slide 37: 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/ 3Q 2013 2Q 2014 3Q 2014 2Q 2014 3Q 2013 3Q 2013 2Q 2014 3Q 2014 2Q 2014 3Q 2013 NORTH AMERICA 527.1 530.4 557.1 5.0% 5.7% 43.5 28.4 26.3 -
Slide 38: Information by Regional Areas and countries - INTERNATIONAL
3 Regional Areas and Business Units Information by Regional Areas and countries – INTERNATIONAL NORTH AMERICA The USA 9 Increase in premiums in local currency compared to the same period of the previous year, driven by Motor (+2.4%) and Home (+8.9%) insurance. Good development of premiums at MAPFR
Slide 39: 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 above the market, driven mainly by the Fire insurance line and, to a lesser extent, by the Motor segment. In the third quarter, strong price competit
Slide 40: Information by Regional Areas and countries - INTERNATIONAL
3 Regional Areas and Business Units Information by Regional Areas and countries - INTERNATIONAL APAC ASISTENCIA 9 Significant growth with respect to the previous year, mainly coming from China and Australia The Philippines 9 Decrease in premiums, due to the non-renewal of a number of corporate a
Slide 41: MAPFRE RE
3 Regional Areas and Business Units MAPFRE RE PREMIUMS RESULTS(1) 9M 2013 9M 2014 U % 9M 2013 9M 2014 U % Cumulative figures 2,666.7 2,740.8 2.8% 122.3 140.2 14.6% PREMIUMS RESULTS(1) U % o/ U % o/ U % o/ U % o/ 3Q 2013 2Q 2014 3Q 2014 2Q 2014 3Q 2013 3Q 2013 2Q 2014 3Q 2014 2Q 2014 3Q 2013 Quarterl
Slide 42: 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 3,719.7 745.4 1,790.4 2,737.9 817.2 1,570.4 67.5 2,
Slide 43: 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 1,971.7 168.7 304.9 1,338.1 100.8 3.1 0.0 416.8 0.0 4,304.1
Slide 44: 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 HOLDING & LATAM LATAM NORTH CONSOLID. IBERIA NORTH SOUTH BRAZIL EMEA AMERICA APAC REINSURANCE ADJUST. TOTAL Results from other business activities 49.3 -0.9 0.6 10.2 0.3 -0.3 -1.5 0.0 -117
Slide 45: Contents
Contents 1 Key highlights 2 Consolidated financial information 3 Regional Areas and Business Units 4 Financial supplement – Key figures 5 Schedule and contacts 45
Slide 46: Operating companies: Key figures MAPFRE FAMILIAR
4 Financial supplement Operating companies: Key figures MAPFRE FAMILIAR 9M 2013 9M 2014 U% Gross written and accepted premiums 2,901.9 2,941.4 1.4% Net premiums earned 2,562.2 2,552.6 -0.4% Underwriting result 172.1 105.6 -38.6% Net financial income 81.8 136.3 66.6% Other business activities 2.7 6.5
Slide 47: MAPFRE FAMILIAR – Domestic business by insurance lines
4 Financial supplement Operating companies: Key figures MAPFRE FAMILIAR – Domestic business by insurance lines Motor 9M 2013 9M 2014 U% Health 9M 2013 9M 2014 U% Gross written and accepted premiums Gross written and accepted premiums 1,543.5 1,516.1 -1.7% 398.1 426.2 7.1% Net premiums earned 1,440.5
Slide 48: Operating companies: Key figures MAPFRE EMPRESAS
4 Financial supplement Operating companies: Key figures MAPFRE FAMILIAR (contd.) MAPFRE EMPRESAS Other 9M 2013 9M 2014 U% 9M 2013 9M 2014 U% Gross written and accepted premiums 137.8 138.9 0.8% Gross written and accepted premiums 498.0 491.4 -1.3% Net premiums earned 124.7 124.2 -0.4% Net premiums e
Slide 49: Operating companies: Key figures MAPFRE VIDA
4 Financial supplement Operating companies: Key figures MAPFRE VIDA 9M 2013 9M 2014 U% Breakdown of premiums 9M 2013 9M 2014 U% Technical Reserves excluding Regular Premiums 294.3 370.6 25.9% shadow accounting 18,262.1 18,275.3 0.1% - Agents' and other channels 173.5 172.2 -0.7% Shadow accounting ad
Slide 50: Operating companies: Key figures MAPFRE VIDA
4 Financial supplement Operating companies: Key figures MAPFRE VIDA Managed savings 9M 2013 9M 2014 U% Change in funds under management(1) 9M 2013 9M 2014 (2) Regular premiums insurance 4,713.3 5,418.9 15.0% IFRS technical reserves 664.3 2,183.5 - Agents' channel and others 3,288.4 3,815.9 16.0% Var
Slide 51: Operating companies: Key figures MAPFRE AMÉRICA
4 Financial supplement Operating companies: Key figures MAPFRE AMÉRICA MAPFRE AMÉRICA (by lines) 9M 2013 9M 2014 U% Non-Life 9M 2013 9M 2014 U % Gross written and accepted premiums 6,626.4 6,790.3 2.5% Gross written and accepted premiums 4,804.6 4,978.6 3.6% Net premiums earned 4,711.1 4,888.9 3.8%
Slide 52: Operating companies: Key figures MAPFRE BRASIL
4 Financial supplement Operating companies: Key figures MAPFRE BRASIL MAPFRE BRASIL (by lines) 9M 2013 9M 2014 U% Non-Life 9M 2013 9M 2014 U% Gross written and accepted premiums 2,529.4 2,635.0 4.2% Gross written and accepted premiums 3,791.6 3,973.1 4.8% Net premiums earned 1,943.1 1,905.7 -1.9% Ne
Slide 53: Operating companies: Key figures MAPFRE INTERNACIONAL
4 Financial supplement Operating companies: Key figures MAPFRE INTERNACIONAL MAPFRE INTERNACIONAL (by lines) 9M 2013 9M 2014 U% Non-Life 9M 2013 9M 2014 U % Gross written and accepted premiums 1,876.9 1,862.3 -0.8% Gross written and accepted premiums 1,959.5 1,966.2 0.3% Net premiums earned 1,308.4
Slide 54: Operating companies: Key figures MAPFRE USA
4 Financial supplement Operating companies: Key figures MAPFRE USA 9M 2013 9M 2014 U % Gross written and accepted premiums 1,199.0 1,220.6 1.8% Net premiums earned 1,021.1 1,042.5 2.1% Underwriting result -10.7 -40.3 --- Net financial income 100.7 90.2 -10.4% Other business activities 0.0 0.0 --- Ot
Slide 55: Operating companies: Key figures MAPFRE RE
4 Financial supplement Operating companies: Key figures MAPFRE RE MAPFRE RE (by lines) 9M 2013 9M 2014 U % Non-Life 9M 2013 9M 2014 U % Gross written and accepted premiums 2,666.7 2,740.8 2.8% Gross written and accepted premiums 2,316.5 2,324.0 0.3% Net premiums earned 1,701.6 1,518.6 -10.8% Net pre
Slide 56: Key figures MAPFRE GLOBAL RISKS and MAPFRE ASISTENCIA
4 Financial supplement Operating companies: Key figures MAPFRE GLOBAL RISKS MAPFRE ASISTENCIA 9M 2013 9M 2014 U % 9M 2013 9M 2014 U % Gross written and accepted premiums 845.6 759.8 -10.1% Operating income 825.5 856.0 3.7% - Global Risks 797.4 711.6 -10.8% - Gross written and accepted premiums 689.4
Slide 57: Net financial income: selected information
4 Financial supplement Net financial income: selected information Breakdown of net financial income (before taxes) 9M 2013 9M 2014 U% Net financial income, Non-life 487.2 636.1 30.6% - of which realised capital gains and impairments 79.8 147.2 84.4% - of which foreign exchange gains/(losses) 19.5 34
Slide 58: 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) 9M 2013 9M 2014 9M 2013 9M 2014 9M 2013 9M 2014 MAPFRE FAMILIAR 22.8 45.9 0.0 3.6 22
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: Provisional Schedule
5 Schedule and contacts Provisional Schedule 6-Nov-14 London Presentation to analysts – Third Quarter 2014 Results Release 2014 Results 11-Feb-15 Madrid Conference Call – 2014 Results 12-Feb-15 London Presentation to analysts – 2014 Results 60
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