GENERICA Dic 2002 - Ing - MAPFRE...– CESVIMAP, its research center dedicated to the study of...

Presentation of

April 2003

2

Section II The Spanish insurance market

Section III Key operating subsidiaries of Corporación Mapfre

Appendix Supplementary information

Section I Key aspects of Sistema Mapfre

3

A profile of Sistema Mapfre (the Mapfre Group)Section I: Key aspects

l Spain’s leading insurance group, with amarket share of 11.6% in 2002

l Strongest brand name and distributionnetwork of any Spanish insurer

l One of the largest insurers in Latin America,present in 12 countries

l Strategic alliance with Caja Madrid, Spain’s4th largest financial institution

l ‘A’+ financial strength rating by AM Best,and ‘AA-/positive outlook’ by Standard &Poor’s

l Corporación Mapfre, the Group’s main listedholding company and subsidiary of MapfreMutualidad, allows investors to share inMapfre’s success

Million euros

2000 2001 2002

Consolidated income 6,920.3 8,933.0 9,305.1Pretax result 243.8 316.1 440.0Net result 166.5 245.0 327.0Net result, Group share 97.8 140.1 205.9Equity (including minorities) 2,043.9 2,216.5 2,204.7Total assets 13,284.8 16,495.4 18,109.8Funds under management (1) 13,908.2 16,635.1 18,204.1N/L Combined ratio (2) 100.0% 97.3% 94.8%

OtherFigures as at December 2002 Spain Countries Total

Employees 9,523 8,707 18,230Branches and exclusive agencies 2,637 524 3,161Agents 23,967 21,203 45,170

(1) Includes: mutual and pension funds (excluding defined benefit plans), mathematical reserves, technical reserves,provisions for risks and expenses, deposits received on ceded reinsurance, dues on transactions in preparation of insurancecontracts, and shareholders’ equity. It does not include funds managed by Caja Madrid’s asset management subsidiaries(2) Net of reinsurance

4

Estimated market share in Spain in 2002

Source: ICEA

CORPORACION MAPFRE SISTEMA MAPFRE including MAPFRE MUTUALIDAD

7.0%6.3%

4.6%4.2% 4.0% 3.9%

3.3% 3.3% 3.1%

7.6%

4.0%

MAPFRE CAIXA ANTARES GENERALI ALLIANZ AVIVA AXA CASER BBVA BSCH

11.6%

Section I: Key aspects

5

Corporación Mapfre:Premiums and results

Premiums from acquired companies are included independently of the date of their acquisition. Million euros

1,899 2,0042,499

3,129 3,357726 719

1,703

2,660 2,290

113

9692

7065

1998 1999 2000 2001 2002

Non-life Life Net result

2,625 2,723

4,202

5,7895,647


6

Corporación Mapfre:Breakdown of premiums by line of business (1)

2001 2002

Premiums from acquired companies are included independently of the date of their acquisition

(1) The breakdown is shown before consolidation adjustments of € 313.9 million, or 5.6% of total premiums in 2002,

and € 344.6 million, or 6% of total premiums in 2001

Total premiums: 5,789 Total premiums: 5,647

MAPFRE VIDA 43%

MAPFRE SEGUROS

GENERALES11%

MAPFRE AMERICA24%

MAPFRE CAJA SALUD

4% MAPFRE EMPRESAS

4%

MAPFRE RE11%

MAPFRE ASISTENCIA

2%OTHER

1%

MAPFRE VIDA 38%

MAPFRE SEGUROS

GENERALES13%

MAPFRE AMERICA22%

MAPFRE RE13%

MAPFRE EMPRESAS

7%

MAPFRE CAJA SALUD

4%

MAPFRE ASISTENCIA

2%OTHER

1%


Million euros

7

Corporación Mapfre:Return on equity (ROE)(1)

(1) Result net of taxes and minorities/ average shareholders’ equity(2) Excluding Mapfre Industrial


2001

Average Consolidated

shareholders' equity profit ROE %(1) ROE %(1)

MAPFRE CAJA MADRID Holding

MAPFRE VIDA 361.9 75.9 21.0 21.1

MAPFRE SEGUROS GENERALES (2) 200.2 40.3 20.1 27.6

UNIDAD DE SEGUROS DE EMPRESAS

- MAPFRE INDUSTRIAL 41.4 12.1 29.2 21.9

- MAPFRE CAUCIÓN Y CRÉDITO 17.6 4.3 24.4 19.3

MAPFRE CAJA SALUD 80.4 7.1 8.8 7.0

MAPFRE AMÉRICA 547.4 26.5 4.8 3.5

MAPFRE RE 268.5 22.7 8.5 0.3

MAPFRE ASISTENCIA 49.8 3.8 7.6 4.8

CORPORACION MAPFRE 1,119.4 113.4 10.1 8.4

2002

Million euros

8

Corporación Mapfre:Return to shareholders


(1) Result net of taxes and minorities/ average shareholders’ equity Figures in euros (except ROE and dividend yield)

0.25

0.31

0.38

0.45

0.55

0.360.39

0.510.53

0.62

0.18 0.18 0.19 0.19 0.19

7.7% 7.9%

9.1%8.4%

10.1%

2.0%2.9%

3.4%2.5% 2.6%

1998 1999 2000 2001 2002

Recurring EPS Ordinary EPS Dividend per share ROE (1) Dividend Yield

9

Evolution of the share price - Year 2002Section I: Key aspects

Corporación Mapfre Ibex 35 DJ Stoxx Insurance

Annual performance:

Corporación Mapfre +18.7%Ibex 35 -28.1%DJ Stoxx Insurance -51.2%

MAP absolute performance with respect to:

Ibex 35 +46.8%DJ Stoxx Insurance +69.9%

MAP relative performance with respect to:

Ibex 35 +65.2%DJ Stoxx Insurance +143.5%

10

Corporación Mapfre:Shareholding structure

55.5%

18.4%

26.1%

55.5%

14.2%

30.3%

55.2%

13.7%

31.1%

2000 2001 2002

Foreign investors Mapfre Mutualidad Spanish investors


11

Mapfre MutualidadSection I: Key aspects

l Mapfre Mutualidad is the parent company ofSistema Mapfre. Together with CorporaciónMapfre, it forms the largest insurance groupin Spain

l It is the largest Motor insurer in Spain, with amarket share of over 18% (20% for SistemaMapfre as a whole)

l Mapfre Mutualidad is distinguished by itsconsistent focus on technical profitability,which is based on:

– Tariffs that reflect risks underwritten– The internalisation of often outsourced

activities such as adjusting and medicalservices

– CESVIMAP, its research center dedicated tothe study of methods to ensure top-quality carrepairs at the lowest possible cost

l Mapfre Mutualidad consistently achieves anunderwriting profit (2002 combined ratio:91.3%)

l In 2002, its solvency margin was equal to4.9x the minimum legal requirement

2000 2001 2002 % 02/01Premiums written 1,340.0 1,539.9 1,713.9 11.3%Gross Result(1) 98.4 121.9 156.8 28.6%Net Result 82.7 98.1 120.3 22.6%

Equity 697.5 788.4 900.5 14.2%

Loss ratio 86.4 80.8 77.4Expense ratio 12.7 13.2 13.9Combined ratio 99.1 94.0 91.3ROE 12.5 13.2 14.2

(1) Before tax, minority interests, and amortisation of goodwill andportfolio acquisition costs.

Million euros

12

Organisational chart

INTERNATIONALDOMESTIC

CORPORACION MAPFRE

LIFE AND SAVINGS

51% 100 %

GESMADRIDCAJA MADRIDPENSIONES

CAJA MADRIDBOLSA

MAPFRE CAJA MADRID HOLDING

MAPFREVIDA

30%

MAPFRE

INMUEBLES

100 %MAPFRESEGUROS

GENERALES

MAPFREMAPFRECAUCION Y

CREDITO

MAPFRECAJA

SALUD

100%

100%

100%

NON-LIFE

85 % 100%

MAPFREAMERICA

MAPFRE

RE

83%

MAPFREASISTENCIA

MAPFRE MUTUALIDAD55%


13

StrategySection I: Key aspects

l The strategy of Sistema Mapfre aims to achieve the following goals:

– Consolidate the Group’s leading position in the Iberian insurance market– Strengthen the presence in Latin America– Boost the development of Corporacion Mapfre and the value of its shares– Optimise the results of the alliance with Caja Madrid– Promote the international development of the Reinsurance and Assistance units– Optimise the structure and operation of the territorial network in Spain– Expand the commercial insurance business– Apply cutting-edge technology– Improve the quality and training level of human resources.

14

Corporación Mapfre:Targets

l Corporación Mapfre aims to achieve the following revised targets over the 2003-2005 period:– Sustained underwriting profit in the insurance and reinsurance businesses (combined ratio ≤ 100% in

Non-life insurance)– Return on equity around 10%, and growing earnings per share

l The following will be the key reference growth targets:

l The average annual increase in net results should be equal to, or greater than 10% is expectedfor the consolidated group in its present structure.


Non-life premiums > 10%

Funds under management (Mapfre Vida) 8-10%

15



Section II The Spanish Insurance Market


16

European insurance markets comparison

1,000

2,000

3,000

4,000

5,000

6,000

10,000 20,000 30,000 40,000 50,000 60,000 70,000

UK

CH

NL IE

DK

SFF

B S

DA

IE

NOL

PSLO

GRML

PL

SK

CZ

H

CYP

Average GDP per capita= EUR 22,100

Average premium per capita= EUR 1,550

= market size

Section II: The Spanish market

Source: Own calculations using SIGMA data

17

Spain: convergence with the EU/EEA

53.8%59.6%

64.6%68.7% 71.5%

1997 1998 1999 2000 2001

GDP per capita

100 %

39.7% 41.9%

52.1%

65.6% 65.9%

1997 1998 1999 2000 2001

Premium per capita

100 %

Source: Own calculations using SIGMA and ICEA data


Spain as a % of the UE/EEA average

18

Source: Swiss Re - Sigma 06/2002

Spanish Market vs. EU/EEA:% Premiums on GDP


% TOTAL PREMIUMS ON GDP

6.8 6.97.6

8.28.9

5.4 5.25.7

6.76.3

1997 1998 1999 2000 2001

TOTAL EU/EEA TOTAL SPAIN

% PREMIUMS ON GDP - LIFE

3.9 4.04.7

5.3 5.5

2.5 2.53.0

3.93.3

1997 1998 1999 2000 2001

LIFE EU/EEA LIFE SPAIN

% PREMIUMS ON GDP - NON LIFE

2.9 2.9 2.9 2.8

3.4

2.92.7 2.7 2.8 2.9

1997 1998 1999 2000 2001NON LIFE - EU/EEA NON LIFE - SPAIN

19

Breakdown of the Spanish market by line of business

2000 2001 2002

LIFE58%

NON-LIFE 42%

LIFE54%

NON-LIFE46%

LIFE56%

NON-LIFE44%

Source: ICEA


20

Section II The Spanish Insurance market


Section III Key operating subsidiaries


21

Mapfre Caja Madrid Holding:Growth rates

Section III: Operating subsidiaries

Source: Own calculations using SIGMA and ICEA data

European Union: Non-life premiums

14.9%

9.4%

-6.2% -0.4%

11.5%

13.0%

5.8%

12.3%

1998 1999 2000 2001

EUROPEAN UNION SPAIN

European Union: Life premiums

-6.0%

15.4%

27.1%

6.5%

36.9%41.4%

-3.8%

7.1%

1998 1999 2000 2001

EUROPEAN UNION SPAIN

Spain: Non-life premiums

12.3%

5.8%

13.0%11.5% 12.6%

11.6%14.4%

17.2% 16.8%

22.7%

1998 1999 2000 2001 2002

SPAIN MCM Holding Non-Life (1)

(1) Premium figures are shown on a full-period basis, independently of the dateson which companies were acquired(2) Technical reserves + investment funds + pension funds (incl. defined benefit plans)

Spain: Funds under management (2)

23.6%6.6%

2.9%4.4%-1.6%

11.2%

28.2%26.3%

20.7%23.8%

1998 1999 2000 2001 2002

SPAIN MCM Holding Life

22

Spanish insurance market in 2002

Source: ICEA, own calculations

Life Non-life

8.3%

7.1%

6.0% 5.7%

4.2% 4.1%3.1%

2.6%

12.3%11.4%

CAIXA ANTARES MCM AVIVA BSCH BBVA GENERALI SABADELL CASER IBERCAJAHOLDING

7.1% 6.8%

5.1%4.5% 4.3%

3.2% 3.0% 2.8% 2.8% 2.7%

ALLIANZ GENERALI ZURICH WINTERTHUR

CATALANA MUTUAMADRILEÑA

ADESLAS CASER SANTA LUCIA

MCMHOLDING


23

Mapfre Vida:Key figures

l Mapfre Vida manages the life and savingsbusiness in the Iberian Peninsula

l It ranks as the largest life insurer in Spain in2001 and 2002

l The Company distributes its life insuranceproducts both through Sistema Mapfre’sagents’ network and through Caja Madrid’sbranches

l Mapfre Vida also ranks as the largest assetmanager among Spanish insurers, with amarket share of 1.1% in mutual funds and2.7% in pension funds, and funds undermanagement of EUR 2.6 bn in 2002


Million euros

2000 2001 2002 % 02/01

Technical Reserves 6,135.2 7,822.5 9,186.1 17.4%Investment Funds 2,178.4 2,202.3 1,968.7 -10.6%Pension Funds (1) 457.9 581.7 679.3 16.8%

Funds under management 8,771.5 10,606.5 11,834.1 11.6%

Clients - Investment Funds 107,550 114,476 106,435 -7.0%Clients - Pension Funds 61,611 89,752 112,118 24.9%

Consolidated Premiums 1,714.9 2,647.0 2,229.6 -15.8%Equity 312.3 349.9 373.9 6.9%

Gross result (2) 89.7 96.3 103.1 7.0%Net result 63.9 69.9 75.9 8.6%Expense Ratio 6.2 3.9 4.8ROE 25.2 21.1 21.0

(1) Pension funds figures do not include defined benefit plans


24

Mapfre Seguros Generales:Key figures


l Mapfre Seguros Generales is Spain’slargest Non-Life (excl. Motor) insurer

l Its business focuses in personal lines,which are characterised by a fairly regularclaims pattern and comparatively highermargins

l Mapfre Seguros Generales can boastabove-market average:

– Premium growth– Average premium/policy– Profitability

l It can achieve this thanks to:– A strong competitive advantage in

distribution and service quality– Effective customer segmentation– An advanced claims handling system

l Mapfre Seguros Generales consistentlyachieves an underwriting profit

2000 2001 * 2002 % 02/01

Personal accidents 49.8 68.6 84.6 23.4%

Marine 4.2 3.1 3.9 24.7%

Fire - Property 4.3 7.1 10.7 50.1%

Motor civil liability 60.6 74.7 87.2 16.6%

Motor other risks 18.1 23.1 27.4 18.4%

Civil Liability 5.5 9.7 12.2 25.7%

Burial 16.5 111.6 151.3 35.6%

Home combined 141.2 194.5 235.6 21.2%

Condominiums combined 48.7 60.6 72.8 20.1%

Industrial risks 5.3 5.2 10.4 100.9%

Commercial risks 71.0 78.8 70.3 -10.8%

Assistance 0.0 4.2 6.2 47.6%

Health 0.0 2.8 3.7 32.7%

Life 0.0 11.2 10.4 -7.1%

Premiums Written 425.3 655.2 786.6 20.1%

Gross Result (1) 53.9 66.3 76.6 15.5%

Net result 32.5 38.2 40.3 5.5%

Equity 83.5 193.0 207.3 7.4%

Loss Ratio 69.3 62.3 62.0

Expense Ratio 21.3 28.2 28.6

Combined Ratio 90.6 90.5 90.6

ROE 38.3 27.6 20.1


* Mapfre Finisterre was consolidated from April 2001 onwards. Million euros

25

Mapfre Empresas

l The Commercial Insurance Operating Unit of Sistema Mapfre (Mapfre Empresas) beganoperating in January 2003

l Mapfre Empresas is the first unit of Sistema Mapfre specialised by type of customer

l It aims to satisfy all insurance protection needs of corporate customers in:– Spain– Europe– Latin America

l Mapfre Empresas is formed by:– Mapfre Industrial (presently a subsidiary of Mapfre Seguros Generales)– Mapfre Caución y Crédito

l Mapfre Empresas will coordinate the sale of commercial insurance products offered by otherMapfre companies

l Mapfre Empresas starts off with a significant share of the commercial insurance market: 10.7%in 2001, and an estimated 11.5% in 2002.


26

Mapfre Empresas:Mapfre Caución y Crédito


Million euros


l Mapfre Caución y Crédito is Spain’s 3rdlargest Credit and Surety insurer with anestimated 14.4% market share

l Building on the strength of the Mapfredistribution network, it is a fast-growingcompany in a market with high barriers toentry

l It can boast a claims ratio below marketaverage, supported by prudent underwriting

l Mapfre Caución y Crédito is developingsmall, specialised subsidiaries in Brazil,Mexico, Chile and Portugal, within aframework characterised by strict technicalcontrol

2000 2001 2002 % 02/01

Premiums written 60.9 70.7 85.3 20.7%Gross result (1) 5.1 5.7 7.1 24.6%Net result 2.8 3.2 4.3 34.4%

Equity 15.7 17.5 17.7 1.1%

Loss Ratio 68.8 72.7 85.3Expense Ratio 37.1 33.2 32.7Income from credit opinions -3.8 -14.1 -19.0Combined Ratio 102.1 91.8 99.0ROE 17.9 19.3 24.4

27

Mapfre Empresas:Mapfre Industrial

l Mapfre Industrial is the 2nd largest industrialinsurance company in Spain, with anestimated 7% market share in 2002.

l Mapfre Industrial offers to its customersinsurance cover, as well as complementaryservices in risk management, security andrisk prevention

l The Company consistently outperforms themarket thanks to:

– A considerably faster rate of growth– A significantly lower combined ratio

l These results reflect:– A high level of service, provided by the widest

distribution network in the Spanish market– Rigorous underwriting and tarification– Cost containment

Million euros



2000 2001 2002 % 02/01

Premiums written 148.5 203.4 346.4 70.3%Gross result (1) 4.9 12.8 18.6 45.3%Net result 3.1 8.2 12.1 47.6%

Equity 34.6 40.7 42.0 3.2%

Loss Ratio 83.4 74.8 71.8Expense Ratio 20.4 20.9 19.2Combined Ratio 103.8 95.7 91.0ROE 11.3 21.9 29.2

28

Mapfre Caja Salud

l Mapfre Caja Salud operates in the Spanishhealth insurance market, where it ranks 4th,with a share of 7.5%

l It enjoys powerful competitive advantages:– The widest product range and distribution

network of any Spanish health insurer– Strong brand

l In 2002, its premiums grew 12.2% vs 9.7%for the market as a whole


Million euros


2000 2001 2002 % 02/01

Premiums written 191.7 219.3 246.1 12.2% - Agents network 168.5 193.7 218.8 13.0% - Bank network 5.0 7.1 8.9 25.4% - Brokers 18.2 18.5 18.4 -0.5%

Equity 54.2 77.3 83.4 7.9%

Number of policyholders 493,729 634,490 724,483 14.2%

Gross result (1) 1.8 8.9 13.8 55.1%Net result -1.9 4.6 7.1 54.3%

Loss Ratio 86.2 80.8 80.4Expense Ratio 11.5 15.6 17.0Combined Ratio 97.7 96.4 97.4ROE --- 7.0% 8.8%

Premiums and policyholders figure are shown on a full-period basis,independently of the dates on which companies were acquiredThe expense ratio for Mapfre Caja Salud is calculated over net earned premiums, as most premiums are underwritten in January

29

Other subsidiariesSection III: Operating subsidiaries

l Mapfre Inmuebles provides real estate services to other companies in Sistema Mapfre. It alsoundertakes housing development projects for sale to third parties

l Corporación Mapfre has a 30% shareholding in the following subsidiaries of the Caja Madridgroup:

– Gesmadrid: the 4th largest mutual fund manager in Spain with EUR 8.1 bn under management and a4.8% market share as of December 2002

– Caja Madrid Pensiones: the 7th largest pension fund manager in Spain with EUR 1.9 bn undermanagement and a 4.0% market share as of December 2002

– Caja Madrid Bolsa: stock brokerage house

30

Mapfre América:Results


l Mapfre América is the holding company forthe American direct insurance subsidiaries ofCorporación Mapfre

l It operates, through its subsidiaries, in 12countries in Central America, the Caribbeanand South America, as well as in Florida(USA)

l It ranks as one of the largest foreign Non-lifeinsurance groups in the region, with anestimated 4.9% market share in 2001, and anetwork among the widest

l Its performance has been improvingconsistently since 1999, on the back of awide-encompassing effort to improveunderwriting results and increase financialreturns

l Caja Madrid has a 10% shareholding inMapfre América

Million euros


2000 2001 2002 % 02/01

Premiums Written 1,328.3 1,516.5 1,341.1 -11.6%

Gross result (1) 16.4 36.2 56.3 55.5%

Net result 2.5 18.1 26.5 46.4%

Equity 469.3 559.8 535.0 -4.4%

Loss Ratio 73.2 70.9 76.8



ROE 0.6 3.5 4.8

31

Mapfre América:Premiums and income by country

(1) Before tax, minority interests, and amortisation of goodwill and portfolio acquisition costs. Million euros


Local CurrencyCOMPANY 2000 2001 2002 % 02/01 % 02/01 2000 2001 2002 % 02/01

MAPFRE ARGENTINA 197.5 220.6 94.1 -57.3% 13.8% 1.4 8.5 -2.3 -127.0%VERA CRUZ (BRAZIL) 280.2 284.5 236.0 -17.0% 7.4% 2.8 0.4 6.0 1410.5%MAPFRE CHILE SEGUROS 50.6 58.9 75.1 27.5% 38.8% 1.7 1.4 1.5 10.3%MAPFRE COLOMBIA 38.1 42.4 40.6 -4.2% 9.6% -6.1 0.1 2.1 2031.0%SEGUROS TEPEYAC (MEXICO) 273.7 311.5 352.8 13.3% 23.1% 6.6 9.7 13.9 43.3%MAPFRE PARAGUAY 10.0 7.7 7.3 -5.2% 25.9% -0.6 0.2 0.2 35.9%MAPFRE PERU 21.6 27.9 26.6 -4.8% 1.9% -4.3 -2.8 -5.2 85.3%MAPFRE USA 202.6 222.7 222.1 -0.3% 6.1% 5.1 11.5 15.5 35.1%LA CENTRO AMERICANA 24.7 29.3 33.7 14.9% 18.9% 1.6 1.1 1.8 61.7%MAPFRE URUGUAY 12.7 11.3 13.4 18.3% 51.1% 0.0 0.8 -1.9 -332.1%LA SEGURIDAD (VENEZUELA) 216.7 299.8 239.5 -20.1% 21.7% 13.0 20.0 30.2 50.9%

RESULTS (1)PREMIUMS

32

Mapfre Re

l Mapfre Re is a specialised reinsurer, ofmedium size and strong solvency, rated ‘A+’by A.M. Best and ‘A+/positive outlook’ byS&P

l It has a strong franchise in Latin America,where it ranks among the leading reinsurers

l Nearly 40% of its premiums come fromMapfre

l Its is technical profile is prudent, as:– Civil liability reinsurance only made up 2.5% of

its total premiums in 2002– Over 85% of its business comes directly from

ceding companies– Its combined ratio remains consistently below

industry average

l In 2002, Mapfre Re is not having anymeaningful impact from some of theproblems, which are negatively affecting thesector:

– Losses from financial investments– Deviations on previous years’ claims– Claims related to asbestosis



Million euros

2000 2001 2002 % 02/01

Gross Premiums 606.3 687.9 760.1 10.5%

- of which Life 23.1 25.6 24.0 -6.3%

Gross result (1) 12.4 -2.2 30.9 ---

Net result 8.1 0.8 22.7 ---

Equity 283.8 269.9 267.0 -1.1%

Loss Ratio 74.9 80.3 60.9



ROE 3.0 0.3 8.5

33

Mapfre Asistencia

l Mapfre Asistencia provides road, home andtravel assistance services

l It has a direct presence in 36 countries. Itenjoys the strongest demand for its servicesin Europe and in Latin America

l In 2002, it wrote a total of 35 million policies,with approximately 95 million beneficiaries,of which more than 2.1 million requiredassistance during the year


Million euros


2000 2001 2002 % 02/01

Total Income 196.6 222.4 206.0 -7.4% - Premiums written 123.3 147.0 127.5 -13.3% - Other income 73.3 75.4 78.5 4.1%

Equity 42.7 50.9 48.7 -4.3%

Gross result (1) 3.9 4.4 5.3 20.5%Net result 1.7 2.8 3.8 35.7%

Loss Ratio 87.2 85.1 77.3Expense Ratio 11.2 10.4 10.9Combined Ratio 98.4 95.5 88.2ROE 4.3 4.8 7.6

34

Section II The Spanish Insurance Market




35

CAJA MADRID: 1,906

41

64

40

132

191

77

392

30641

167

99212

59475

1132

3

18

68

23

22

5

6

216

13421

22

140

6

0

1,014

22

19

18

104

191

55

25

Apéndice

SISTEMA MAPFRE: 2,637

Corporación Mapfre:Spanish distribution network- Year 2002

Appendix

36

Corporación Mapfre: Geographical distribution of premiums

Corporación Mapfre:Breakdown of premiums by region

Appendix

2001

SPAIN64.7%

NORTH AMERICA11.1%

OTHER1.0%

EUROPE2.6%

SOUTH AMERICA20.5%

2002

SPAIN65.7%

NORTH AMERICA12.4%

OTHER1.9%

SOUTH AMERICA15.7%

EUROPE4.3%

37

Corporación Mapfre:Consolidated profit and loss account

(1) Ratios calculated over premiums net of reinsurance. Million euros

2000 2001 2002 % 02/01N/L Gross premium written 2,499.3 3,128.9 3,349.0 7.0%N/L Net premium written 2,143.6 2,682.1 2,749.2 2.5%Net Premiums Earned 2,082.2 2,564.5 2,568.3 0.1%Net Claims Incurred -1,543.1 -1,839.5 -1,783.7 -3.0%Variation, Other Technical Provisions -9.5 -18.2 -27.3 50.2%Operating Expenses -582.4 -728.3 -747.4 2.6%Net Other U/W Income -33.4 -35.1 -43.0 22.5%U/W Result -86.2 -56.5 -33.1 -41.4%Net Inv. Income, Non-life Account 192.5 195.8 232.8 18.9%Variation, stabilization/equalization reserve -5.6 -2.9 -10.0 243.0%Non-life Technical Result 100.8 136.3 189.7 39.2%Life GPW 1,703.1 2,660.3 2,290.9 -13.9%Life NPW 1,690.0 2,614.5 2,241.0 -14.3%Net Life Expenses -101.8 -126.7 -133.3 5.2%U/W Result, Life Account -196.4 -293.5 -329.8 12.4%Net Inv. Income, Life account 238.0 374.1 410.9 9.8%Life Technical Result 41.6 80.5 81.1 0.7%Total Technical Result 142.3 216.9 270.8 24.9%Net financial income 16.4 21.2 10.7 -49.5%Other Non-technical Items 25.7 -4.1 -21.7 ---Extraordinary Items 15.6 -22.4 -0.8 -96.4%Pretax Result 200.0 211.7 259.0 22.3%Taxes -59.0 -43.7 -67.6 54.7%Net Result 141.0 168.0 191.4 13.9%Minorities -49.1 -71.8 -78.0 8.6%NET RESULT, GROUP SHARE 91.9 96.2 113.4 17.9%

N/L Loss Ratio (1) 74.6% 72.4% 70.5%N/L Expense Ratio (1) 28.7% 28.5% 28.8%N/L Combined Ratio (1) 103.3% 100.9% 99.3%Life Expense Ratio (1) 6.0% 4.8% 6.0%

Appendix

38

Corporación Mapfre:Profit by business area

Million euros

2000 2001 2002 % 02/01

Companies operating mainly in SpainDirect insurance 135.8 169.9 199.9 17.6%Other 0.1 --- --- ---

Subtotal 135.9 169.9 199.9 17.6%

Companies operating mainly abroadDirect insurance 16.0 36.2 56.5 56.1%Accepted reinsurance 12.4 -2.2 30.9 ---Assistance 3.9 4.4 5.3 20.5%Other -0.3 0.5 -1.5 ---

Subtotal 32.0 38.9 91.2 134.4%

EQUITY-ACCOUNTED SUBSIDIARIESBrokerage and fund management 23.5 23.1 19.9 -13.7%Real estate management and development 2.5 11.7 3.5 -69.9%Other 0.5 -0.1 0.5 ---

Total results from subsidiaries 194.4 243.5 315.0 29.4%

Amortisation of goodwill and portfolio acquisition costs -10.9 -24.1 -37.6 56.0%CORPORACION MAPFRE unconsolidated result 74.9 35.1 -39.1 ---Consolidation adjustments -58.5 -42.8 20.7 ---

Result before tax and minority interests 199.9 211.7 259.0 22.3%Taxes -59.0 -43.7 -67.6 54.7%Result attributable to minority interests -49.0 -71.8 -78.0 8.6%Result attributable to the controlling company 91.9 96.2 113.4 17.9%

Appendix

39

Corporación Mapfre:Consolidated quarterly results

(1) Data adjusted for the share split, which took place on 15 September 2001.

QUARTER 1999 2000 2001 2002

FIRST 18 23 26 29

SECOND 19 26 28 32

THIRD 23 28 17 28

FOURTH 10 15 25 24

TOTAL 70 92 96 113

FIRST SECOND THIRD FOURTH TOTAL

1999 2000 2001 2002

Appendix

NET RESULT BY QUARTER (million)

QUARTERLY EPS

QUARTERLY EPS

QUARTER 1999 2000 2001 2002

FIRST 0.10 0.13 0.14 0.16

SECOND 0.11 0.14 0.15 0.18

THIRD 0.13 0.15 0.09 0.15

FOURTH 0.05 0.08 0.14 0.13

TOTAL 0.39 0.51 0.53 0.62

Figures in euros, except capitalisation (million)

1999 2000 2001 2002

Capitalisation 987.7 1,228.6 1,181.9 1,403.5Number of shares (1) 181,564,536 181,564,536 181,564,536 181,564,536PER 14.1 13.4 12.3 12.4

40

Corporación Mapfre:Consolidated balance sheet

Million euros

Appendix

1999 2000 2001 2002

ASSETSUncalled Share Capital 1.7 0.9 0.0 0.0Fixed Assets and start-up expenses 84.5 367.0 506.1 497.3Investments 4,886.7 7,985.5 10,260.3 11,558.1Investments on account of policy holders assuming risk 54.6 509.7 739.4 574.7Participation by reinsurance in technical reserves 342.1 409.0 477.7 526.4Receivables 876.4 1,009.1 1,144.9 1,081.8Other assets 546.5 412.5 553.3 602.5Accruals 238.5 511.7 339.0 396.9TOTAL ASSETS 7,031.0 11,205.3 14,020.7 15,237.7

LIABILITIESShareholders' Equity 906.4 1,120.8 1,161.9 1,076.9Minority interests 263.5 607.0 649.2 624.3Deferred income 11.0 11.0 21.0 17.5Technical reserves 5,054.3 8,032.3 9,943.2 11,433.5Technical reserves when inv. risk is assumed by policyholders 54.6 509.7 739.4 574.7Provisions for risks and expenses 63.6 70.6 105.1 96.9Deposits received on ceded reinsurance 68.3 69.5 79.2 94.0Debts 82.2 79.2 350.8 296.7Other liabilities 475.2 649.2 898.6 943.6Accruals 51.9 56.0 69.4 79.6TOTAL LIABILITIES 7,031.0 11,205.3 14,020.7 15,237.7

Employees 11,049 10,142 11,284 12,376

41

Corporación Mapfre:Consolidated investments breakdown

Million euros

0%

20%

40%

60%

80%

100%

1998 1999 2000 2001 2002

FIXED-ASSETS EQUITYFIXED-INCOME SECURITIES INVESTMENT FUNDSOTHER INVESTMENTS

Appendix

1998 1999 2000 2001 2002

FIXED-ASSETS 524 530 535 567 514EQUITY 99 100 161 173 143FIXED-INCOME SECURITIES 2,496 2,929 5,585 7,610 9,217INVESTMENT FUNDS 464 530 539 605 587OTHER INVESTMENTS 798 797 1,165 1,306 1,096

TOTAL 4,381 4,887 7,986 10,260 11,558

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Public Sector

59.8%

Fin. Inst.

21.1%

Utilities

5.9%

Industrial

6.3%

Supranational2.1%

Struc. Fin.

1.1%

Telecom

1.8%'AAA' Struc. Fin.

2.1%

Corporacion Mapfre:Breakdown of the investment portfolio

Breakdown of the investment portfolio by asset type Breakdown of the fixed income portfolio by rating

Breakdown of the fixed income portfolio by issuer Breakdown of the fixed income portfolio by area

AAA20.9%

AA61.0%

A11.4%

BB0.5%

CCC1.0%

SD0.2%

NR0.0%

B0.6%

BBB4.3%

Spain43.0%

Europe41.4%

North Am10.2%

LatAm5.1%

Africa0.0%

Asia0.3%

Equities

1.2%

Fixed income

79.7%

Fixed assets

4.5%

Inv. funds

5.1%

Other invest.9.5%

Appendix

43

Corporación Mapfre:Funds under management(1)

Million euros

(1) Figures do not include funds managed by Caja Madrid’s asset management subsidiaries(2) Pension funds figures do not include defined benefit plans(3) Includes: provisions for risks and expenses, deposits received on ceded reinsurance and dues on transactions in preparation of insurance contracts

Appendix

1998 1999 2000 2001 2002

Investment Funds Pension Funds (2) Shareholders Equity

Mathematical Reserves (Life) Other Technical Reserves Other Funds (3)

7,7028,613

12,488

14,85715,964

44

Ratings

MAPFRE MUTUALIDAD STANDARD & POOR'SInsurer Financial Strength Rating AA- / Positive, assigned on 18/07/02

AM BESTFinancial Strength Rating A+ (Superior), last affirmed on 11/07/02

CORPORACION MAPFRE STANDARD & POOR'SCounterparty Credit Rating A+ / Positive, assigned on 18/07/02Bond issue A+ / Positive, assigned on 18/07/02

MAPFRE ASISTENCIA AM BESTFinancial Strength Rating A+ (Superior), last affirmed on 11/07/02

MOODY'SFinancial Strength Rating A1, assigned on 2/10/02

MAPFRE RE STANDARD & POOR'SInsurer Financial Strength Rating A+ / Positive, assigned on 18/07/02

AM BESTFinancial Strength Rating A+ (Superior), last affirmed on 11/07/02

Appendix

45

Mapfre Vida:Premiums breakdown

Premiums from Caja Madrid Vida are included on a full-year basis, independently of the date of its first consolidation (01/07/00). Million euros

2000 2001 2002 % 02/01

Regular Premiums 464.4 459.0 510.3 11.2% - Agents channel 427.1 423.4 430.8 1.7% - Bank channel 37.3 35.6 79.5 123.3%

Single Premiums 493.9 922.3 1,330.9 44.3% - Agents channel 141.7 226.8 337.9 49.0% - Bank channel 352.2 695.5 993.0 42.8%

Unit-Linked 487.9 328.8 54.8 -83.3% - Agents channel 63.6 26.7 16.0 -40.1% - Bank channel 424.3 302.1 38.8 -87.2%

LIFE PREMIUMS 1,446.2 1,710.1 1,896.0 10.9%

Externalisation 884.1 860.8 320.4 -62.8% - Agents channel 573.6 555.4 240.0 -56.8% - Bank channel 310.5 305.4 80.4 -73.7%

Sub-total 2,330.3 2,570.9 2,216.4 -13.8%

Accidents 4.9 7.0 13.2 88.6% - Agents channel 4.9 7.0 9.6 37.1% - Bank channel 3.6

Health 59.3 69.1 0.0

TOTAL PREMIUMS 2,394.5 2,647.0 2,229.6 -15.8% - Agents channel 1,270.2 1,308.4 1,034.3 -20.9% - Bank channel 1,124.3 1,338.6 1,195.3 -10.7%

Appendix

46

Mapfre América

Year initial Year control %COMPANY investment acquired Ownership

MAPFRE ARGENTINA 1989 1989 100.0VERA CRUZ SEGURADORA (BRAZIL) 1991 1996 100.0MAPFRE CHILE SEGUROS 1986 1997 100.0MAPFRE SEG. GENERALES COLOMBIA 1984 1995 100.0SEGUROS TEPEYAC (MEXICO) 1990 1994 99.9MAPFRE PARAGUAY 1988 1988 81.2MAPFRE PERU 1996 1997 78.1PRAICO 1990 1990 100.0LA CENTRO AMERICANA (EL SALVADOR) 1998 2000 71.7MAPFRE URUGUAY 1994 1994 100.0LA SEGURIDAD (VENEZUELA) 1996 1997 98.9

Appendix

47

Mapfre América:Premiums by business line (%) - 2002

Appendix

OTHER

MOTOR NON LIFE LIFE HEALTH TOTAL

48 35 0 17 10078 22 0 0 10024 76 0 0 10063 37 0 0 10070 13 9 8 10046 53 1 0 10042 55 0 3 10054 46 0 0 10015 44 34 7 10053 47 0 0 10033 21 2 44 100

COMPANY

MAPFRE ARGENTINAVERA CRUZ (BRAZIL)MAPFRE CHILE SEGUROS MAPFRE COLOMBIASEGUROS TEPEYAC (MEXICO)

MAPFRE URUGUAYLA SEGURIDAD (VENEZUELA)

MAPFRE PARAGUAY MAPFRE PERUMAPFRE USALA CENTRO AMERICANA (EL SALVADOR)

48

Mapfre Re:Breakdown of premiums - 2002

BY REGION BY CEDENT

MAPFRE39%

OTHER61%

SPAIN42%

EUROPE29%

LATIN AMERICA18%

OTHER2%

USA9%

BY BRANCH OF BUSINESSBY TYPE OF BUSINESS

PROPORTIONAL76%

13%

FACULTATIVE11%

PROPERTY70%

MARINE ANDTRANSPORT

6%

MOTOR8%

LIFE AND ACCIDENTS

8%

OTHER8%

NON PROPORTIONAL

Appendix

49

Provisional calendar for the year 2003

26/02/03 Release of year 2002 results

26/02/03 Analysts’ presentation, year 2002 results - Madrid

26/02/03 Analysts’ presentation, year 2002 results - London

29/03/03 Annual General Meeting - Madrid

29/04/03 Release of first quarter 2003 interim results

24/07/03 Release of first half 2003 results

22/10/03 Release of third quarter 2003 interim results

22/10/03 Analysts’ presentation, third quarter 2003 interim results - Madrid

22/10/03 Analysts’ presentation, third quarter 2003 interim results - London

Dates may be subject to changes

Calendar and contacts

50

Investor Relations Department

Luigi Lubelli Finance Director

+34-91-581-6071

Jesús Rodríguez Castejón +34-91-581-1096

Antonio Triguero Sánchez

+34-91-581-5211

Natalia Rodríguez Sánchez

+34-91-581-2458

Marisa Godino Alvarez

Secretary

+34-91-581-2985

Corporación Mapfre, S.A.

Investor Relations Department

Carretera de Pozuelo a Majadahonda, nº 52

28220 Majadahonda [email protected]

Calendar and contacts

51

Disclaimer

This document is purely informative. Its content does not constitute, nor can it be interpretedas, an offer or an invitation to sell, exchange or buy, and it is not binding on the issuer in anyway. The information about the plans of the Company, its evolution, its results and itsdividends represents a simple forecast whose formulation does not represent a guaranteewith respect to the future performance of the Company or the achievement of its targets orestimated results. The recipients of this information must be aware that the preparation ofthese forecasts is based on assumptions and estimates, which are subject to a high degreeof uncertainty, and that, due to multiple factors, future results may differ materially fromexpected results. Among such factors, the following are worth highlighting: the evolution ofthe insurance market and of the economic enviroment in general in those countries wherethe Company operates; changes in the legal framework; changes in monetary policy;circumstances which may affect the competitiveness of insurance products and services;changes in the underlying tendencies on which the mortality and morbidity tables used inLife and Health insurance are based; frequency and severity of claims insured, with respectto reinsurance and general insurance, as well as to life insurance; variations in interest ratesand exchange rates; risks associated with the use of derivative instruments; the impact offuture acquisitions.

MAPFRE does not undertake to update or revise periodically the content of this document.

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