Mapfre Sa · BME:MAP
Mapfre Sa — FY2019 Earnings Presentation
28 slides from Mapfre Sa's earnings presentation, Feb 12, 2020
Slide 1: Submission to the Spanish Securities and Exchange Commission
Madrid, February 12, 2020 SPANISH SECURITIES AND EXCHANGE COMMISSION Please find attached the documentation to be presented to the press in upcoming meetings. Ángel L. Dávila Bermejo General Counsel
Slide 2: Annual Results 2019
February 12, 2020 ANNUAL RESULTS 2019 ANTONIO HUERTAS Chairman and CEO of MAPFRE
Slide 3: Economic Situation: Environments
ECONOMIC SITUATION 2 ENVIRONMENTS WEATHER EVENTS + Intensity + Frequency ECONOMIC CONTEXT Low interest rates POLITICAL AND SOCIAL CONTEXT Instability, uncertainty
Slide 4: Strength of Sustainability Commitment
3 STRENGTH OF THE INSURANCE BUSINESS €806M (+18%) SPAIN Growing ahead of the market BRAZIL Profit up 79% USA Earnings up 7x SUSTAINABILITY AND RESILIENCE IN RESULTS €609M net earnings COMMITMENT TO SHAREHOLDERS Dividend maintained (€447M charged to 2019 results)
Slide 5: The Figures at a Glance
THE FIGURES AT A GLANCE 4 NON-LIFE COMBINED RATIO PREMIUMS ATTRIBUTABLE 97.6% EARNINGS 23,044 609 +2% +15% ROE* 8% CONSOLIDATED SOLVENCY REVENUES RATIO ** 28,472 195% +7% Figures in million euros *Excluding goodwill writedown **Data at Sept. 2019
Slide 6: Adjusted Group Earnings
ADJUSTED GROUP EARNINGS 5 2018 2019 % NET EARNINGS 529 609 +15% CATASTROPHIC EVENTS 108 147 GOODWILL 174 66 WRITEDOWN 811 822 +1% ADJUSTED EARNINGS Figures in million euros
Slide 7: Premiums/Earnings by Business Unit
PREMIUMS/EARNINGS BY BUSINESS UNIT 6 PREMIUMS INSURANCE NET EARNINGS 19,292 +3% 806 INTERNATIONAL LATAM 94 7,547 IBERIA LATAM 7,718 INTERNATIONAL 215 4,027 REINSURANCE 4,520 IBERIA 498 ASISTENCIA 77 -19 861 RE -88 -5% GLOBAL RISKS 1,060 5,581 +13% INSURANCE RE GLOBAL ASISTENCIA RISKS Figures in mill
Slide 8: A Diversified Business: Premium Distribution
A DIVERSIFIED BUSINESS 7 PREMIUM AUTOMOBILE DISTRIBUTION 25.7% (27.9%) GENERAL P&C 28.6% (25.2%) LIFE 19% (19.8%) REINSURANCE HEALTH 21.6% (22%) 5.1% (5.1%) (%) Previous year Data do not include consolidation adjustments.
Slide 9: Annual Results 2019 - Fernando Mata, CFO
February 12, 2020 ANNUAL RESULTS 2019 FERNANDO MATA CFO and Member of the Board
Slide 10: Revenues and Premiums
REVENUES AND PREMIUMS 9 17,559 CONSOLIDATED REVENUE €28,472M +7% 5,485 3,287 2,141 +2.9% +0.2% +27.7% +44.9% NON-LIFE LIFE FINANCIAL OTHER INCOME TOTAL PREMIUMS IN 2019 €23,044M +2% Figures in million euros
Slide 11: Earnings Breakdown
EARNINGS BREAKDOWN 10 NET EARNINGS €609M +15% 920 822 614 609 -255 -324 -346 -213 +1% -10% +111% -28% -1% +15% --- +1% NON-LIFE LIFE OTHER TAXES NON- NET EXTRA- ADJUSTED ITEMS* CONTROLLING EARNINGS ORDINARY EARNINGS EXC. EXC. INTERESTS ITEMS** GOODWILL GOODWILL Figures in million euros *Includes oth
Slide 12: Group Balance Sheet
GROUP BALANCE SHEET 11 67,291 72,510 TOTAL ASSETS +7.8% DEC 2018 DEC 2019 +€860M SHAREHOLDERS’ NET GAINS EQUITY Total 3,565 million euros 8,854 7,994 Life policyholders 2,559 million euros +10.8% Group net 1,006 million euros 609 -447 715 36 -53 CURRENCY BALANCE RESULT FOR DIVIDENDS UNREALIZED OTHER
Slide 13: Investments and Cash
INVESTMENTS AND CASH 12 INVESTMENT FIXED PORTFOLIO €53,523M +8.6% INCOME €39,444M PUBLIC DEBT 30,089 FIXED INCOME Spain 18,182 AND OTHER Rest of Europe 5,016 82% United States 1,589 Brazil 3,021 Latin America - Other 1,828 EQUITY CASH Other countries 454 AND FUNDS 5% CORPORATE DEBT 9,355 REAL ESTATE
Slide 14: Capital and Solvency
CAPITAL AND SOLVENCY 13 CAPITAL STRUCTURE SOLVENCY €13,080M SOLVENCY II RATIO 195%* SENIOR DEBT Tier 1 8% EQUITY €7,853M 77% (87%) Tier 2 6% BANK SUBORDINATED DEBT 9% DEBT €1,202M (13%) DEBT RATIO (2019) 22.7% *3rd Quarter
Slide 15: Insurance Business Regional Breakdown: Iberia
INSURANCE BUSINESS PREMIUMS REGIONAL BREAKDOWN 14 PREMIUM BREAKDOWN IBERIA +1% 7,718 IN PREMIUMS 2,425 2,314 2,037 -6% +1% 7,582 +9% +1% 692 135 +1% +4% SPAIN PORTUGAL LIFE AUTOMOBILE GENERAL HEALTH AND P&C ACCIDENT NET RESULT €498M +4% INSURED VEHICLES 94.4% 5.9 MILLION COMBINED RATIO ROE 12.6% Fig
Slide 16: Insurance Business Regional Breakdown: Brazil
INSURANCE BUSINESS PREMIUMS REGIONAL BREAKDOWN 15 BRAZIL ROE 9.6% 1,630 1,503 4-POINT IMPROVEMENT +2% +11% 843 -17% GENERAL LIFE AUTOMOBILE P&C PREMIUMS NET RESULT COMBINED RATIO €3,978M +0% +2%* €97M +79% 92.2% (-6.3 p.p.) Figures in million euros *Changes in local currency.
Slide 17: Insurance Business Regional Breakdown: North America
INSURANCE BUSINESS PREMIUMS REGIONAL BREAKDOWN 16 NORTH AMERICA 1,686 CR +4% 90.5% UNITED STATES 1,950 382 -4% 264 -36% -1% NORTHEAST OTHER STATES PUERTO RICO PREMIUMS NET RESULT COMBINED RATIO €2,332M -4% -9%* €79M (+125%) 100.4% Figures in million euros *Changes in local currency.
Slide 18: Insurance Business Regional Breakdown: LATAM North
INSURANCE BUSINESS PREMIUMS REGIONAL BREAKDOWN 17 LATAM NORTH 94.7% CR Autos 1,325 6-POINT IMPROVEMENT ROE 15.2% +84% 499 +9% 149 +14% MEXICO CENTRAL AMERICA DOMINICAN REPUBLIC PREMIUMS NET RESULT COMBINED RATIO €1,973M +51% €63M +45% 94.7% Figures in million euros
Slide 19: Insurance Business Regional Breakdown: LATAM South
INSURANCE BUSINESS PREMIUMS REGIONAL BREAKDOWN 18 LATAM SOUTH 552 +12% 380 +3%* 276 +1%* -3% 171 +33%* -5% -15% PERU COLOMBIA CHILE ARGENTINA PREMIUMS NET RESULT COMBINED RATIO €1,597M -1% €55M -7% 100% Figures in million euros *Changes in local currency.
Slide 20: Insurance Business Regional Breakdown: Eurasia
INSURANCE BUSINESS PREMIUMS REGIONAL BREAKDOWN 19 EURASIA 106% CR Autos CR 6-POINT IMPROVEMENT 90.3% 471 448 +6%* -1% 357 343 -8% -8% +5% ITALY TURKEY MALTA GERMANY PREMIUMS NET RESULT COMBINED RATIO €1,696M -4% €15M (+21%) 106.1% Figures in millions of euros *Changes in local currency.
Slide 21: Share Price Performance
SHARE PRICE PERFORMANCE 20 MAPFRE +1.7% Spanish banks -3.4% Share price trend: December 31, 2018 - December 31, 2019 Source: Bloomberg and internal calculations Spanish banks IBEX 35 +11.8% STOCK MARKET Stoxx CAPITALIZATION at 12-31-19 7,269 Insurance 600 +24.4% Figures in million euros
Slide 22: Annual Results 2019
February 12, 2020 ANNUAL RESULTS 2019
Slide 23: We Are Able to Maintain Our Shareholder Remuneration
22 AND SO… WE ARE ABLE TO MAINTAIN OUR SHAREHOLDER REMUNERATION DIVIDEND FOR THE YEAR: 0.145 euros per share, distributed against 2019 results In total: €447M 5.7% RETURN ON AVERAGE QUOTED PRICE
Slide 24: Social Dividend
SOCIAL DIVIDEND 23 Corporate tax €324M paid in taxes. Effective tax rate 25% 97% of a total of 30,000+ employees have permanent contracts Opportunities for over 250,000 individuals (distributors, providers etc.) Volunteering: 10,300 volunteers/ 125,000 beneficiaries 48.3% of vacancies for job positi
Slide 25: Operational Sustainability
24 OPERATIONAL SUSTAINABILITY IN OUR INSURANCE BUSINESS AND IN OUR INVESTMENTS Carbon neutral In Spain and Portugal by 2021. In the rest of the world by 2030. +€45M SOCIAL PROJECTS
Slide 26: Business Strengths
BUSINESS STRENGTHS 25 KEY GROUP MARKETS Growing in profitability DIVERSIFICATION Geographic and business INCREASED RECURRING PROFIT Insurance business REINSURANCE Strength and stability DIGITAL BUSINESS GROWTH 17%
Slide 27: Financial Strengths
26 FINANCIAL STRENGTHS RATINGS: SOLVENCY QUALITY FINANCIAL CAPITAL STRENGTH POSITION: FITCH 'A+' (87% TIER 1) S&P 'A+' 195% DEBT LEVEL: UNREALIZED TECHNICAL RESULT: 22.7% CAPITAL GAINS: INSURANCE +€1BN COMBINED RATIO 96.5%
Slide 28: Antonio Huertas, Chairman and CEO
@ahuertasmejias www.linkedin.com/in/antoniohuertasmejias ANTONIO HUERTAS Chairman and CEO of MAPFRE