Presentación de PowerPoint - MAPFRE · 2021. 5. 20. · 17 Results 12M 2020 Premiums Attributable...

Equity StoryMay 2021

1

Company Profile

2

3

Global player

+29 Minsurance clients

16,196branches*

+82,000distributors

+33,700employees

+140,000providers

*Of which: 721 direct, 4,212 delegate and 11,263 bancassurance branches

missionTo be a multinational team that strives tirelessly to improve our services and ensure the best possible relationships

with our clients, distributors, providers, shareholders and society in general

valuesSolvencyIntegrity

Vocation for serviceInnovation for leadership

Committed team

visionTo be the trusted global insurance

company

Diversified business

Breakdown of premiums by line

Information to December 2020

Breakdown of premiums by business unit

4Information to December 2020

MotorP&C

LifeReinsurance

Health & Accident

24%28%17%25%6%

Only participating

Spanish insurer

5

MAPFRE’s commitment to sustainability

Global commitments• United Nations (UN) Global Compact• UN Environment Programme Finance Initiative (UNEPFI)• Principles for Sustainable Insurance (PSI)• Paris Pledge for Action• UN Principles for Responsible Investment (PRI)• UN 2030 agenda - Sustainable Development Goals & Human Rights• Women’s Empowerment Principles (UN Women)

Sustainable investing & financing• ≈90% of investment portfolio with high & very high ESG ratings• Label ISR awarded to MAPFRE Capital Responsable and MAPFRE Inclusión Responsable funds• Syndicated credit line (€1 bn) converted into sustainable loan

ESG indices and recognitions• Included in the Dow Jones Sustainability World, FTSE4Good, Euronext Vigeo Europe 120, Euronext Vigeo Eurozone 120 and Ethibel

Sustainability indices • Recently included in the Bloomberg Global Gender Equality Index, as well as the S&P Global Sustainability Yearbook 2021

Rating

6

Companies registered in Spain S&P Fitch A.M. Best

MAPFRE S.A. - Issuer A- (Stable) A- (Stable) -

MAPFRE S.A. - Senior debt A- BBB+ -

MAPFRE S.A. - Subordinated debt BBB BBB- -

Financial Strength

- MAPFRE RE A+ (Stable) - A (Stable)

- MAPFRE ESPAÑA - - A (Stable)

- MAPFRE ASISTENCIA - A+ (Stable) -

Main companies registered outside of Spain S&P Fitch A.M. Best

Financial Strength

MAPFRE SIGORTA A.S. (Turkey) - AA+ tur (Stable) -

MAPFRE SEGUROS GENERALES DE COLOMBIA - AA col (Stable) -

MAPFRE BHD COMPAÑÍA DE SEGUROS (Dominican Republic) - AAA dom (Stable) -

MAPFRE U.S.A. Group - - A (Stable)

MAPFRE PRAICO (Puerto Rico) - - A (Stable)

MAPFRE MÉXICO - - A (Stable)

MAPFRE PANAMÁ - - A (Stable)

MAPFRE S.A. and main subsidiaries’ credit ratings reaffirmed during the second half of 2020 by main rating agencies

2

Results 12M 2020

7

2020 overview

8

Results12M 2020

Strong results in a year marked by COVID and economic crisis > consolidating profitability trends in insurance units and resilient balance sheet

Rapid implementation of business continuity plan > in all countries and units

COVID-19 P&L impacts >

› Largest impacts on the top-line > mitigated by successful portfolio retention plan

› Manageable COVID claims > offset by lower frequency, mainly in Motor

› Strict cost savings plan > offsetting COVID related expenses

Focus on transformation and digitalization > advancing in strategic initiatives

Extensive balance sheet review and resilient capital position > adapting valuations and exposures to current scenario

Optimization of shareholder return > without compromising financial position

COVID-19 strategy

9

Results12M 2020

Rapid and effective response to the crisis

PEOPLE >

› Close to 90% of employees working from home at the peak of the crisis, in order to protect their health as well as the health of collaborators and clients

› Essential services for clients maintained through our provider network

BUSINESS CONTINUITY >

› Business continuity plan implemented in all countries and business units

› Premium discounts to clients

› Financing insurance for self-employed clients and advance payment to providers

› Portfolio retention and cost containment plans

› Acceleration of digitalization plans

BALANCE SHEET >

› Evaluation of risks, protecting the balance sheet and preserving capital and liquidity

Figures at a glance

25.4 BN 527 M 6.1%

7.6%

10

Results12M 2020

-0.4 p. p. excluding

write-offs*

SOLVENCY RATIO

192.9%at 12.31.2020

Robust and resilient

solvency position

658 M-2.5%

excluding write-offs*

94.8%

92.9% -3.6 p.p.

in insurance units

20.5 BN

* Excluding write-offs of goodwill and portfolio acquisition expenses in 2019 & 2020Figures in €

at constant exchange rates and excluding

the impact of the PEMEX policy

at constant exchange rates

-4.6% -2.2%

Consolidated revenue

-10.7%Premiums

-11.1%Attributable

result

-13.6%ROE

-1.2 p.p.Combined

ratio

-2.9 p.p.

Total premiums & consolidated revenue

11

Results12M 2020Earnings breakdown

*Includes other activities, expenses from holding companies, and hyperinflation adjustments

Figures in million €

16,110

4,3722,437 2,500

Non-Life Life Financial Other revenue

-8.3%

-20.3%-25.9% 16.8%

Total premiums

20,482-11.1%

Consolidated revenue

25,419-10.7%

873

464

-218 -298 -294

527

Non-Life Life Other concepts* Taxes Non-controllinginterests

Net earnings

-5%

-25%

-14% -8% -15%

-13.6%

6,999

3,085

1,575 1,450

2,098

1,483

5,687

619

IBE

RIA

BR

AZI

L

LATA

M N

OR

TH

LATA

M S

OU

TH

NO

RT

H A

MER

ICA

EUR

ASI

A

REI

NSU

RA

NC

E &

GLO

BA

L R

ISK

S

ASI

STEN

CIA

-9.3%

-22.4%

-20.2% -9.2%

-10.0%

-12.5%

1.9%

-28.1%

LATAM6,110-19.0%

INTERNATIONAL3,581

-11.1%

Distribution by business area

12

Premiums Attributable result

Figures in million €

Results12M 2020

453

10170 59 76

3117

-21

IBE

RIA

BR

AZI

L

LATA

M N

OR

TH

LATA

M S

OU

TH

NO

RT

H A

MER

ICA

EUR

ASI

A

REI

NSU

RA

NC

E &

GLO

BA

L R

ISK

S

ASI

STEN

CIA

-8.9%

4.6%

10.4% 6.8%-3.0%

106.3%-70.7%

76.6%

LATAM2306.9%

INTERNATIONAL107

14.6%

13

Results

12M 2020

Source: MAPFRE Integrated Report 2020 & Financial Report December 2020; AGM & Management Insights 2021; ICEA’s latest available dataFigures in million €

Attributable result Combined ratio Premiums

€7.0 bn

IBERIA

-9.3% in premiums

€453 mn-8.9% in results

92.0%-2.4 p.p.

10.6%-2.0 p.p. in ROE

▪ Spain is MAPFRE’s main market in terms of business contribution

▪ 7 million clients in Spain▪ Outperforming the market in key

segments, while maintaining a significant profitability advantage

▪ Leading market positions:➢ #1 in Motor ➢ #1 in Non-Life➢ #2 in Direct Insurance

1,677

2,235 2,134

715

Life Motor General P&C Health &Accident

-30.9%

4.8%-3.4%

3.3%

141

249

27 46

Life Motor General P&C Health &Accident

-70.4%

60.8%

14.9%

-21.2%

93.7%

96.3%

94.4%

84.9%

100.8%

93.1%

Motor General P&C Health & Accident

12M 2019 12M 2020

Advancing in strategy execution in a challenging environment

(30% of Group total)

IBERIA encompasses MAPFRE’s business activity

in Spain and Portugal

▪ Strategic priorities: ➢ Portfolio protection➢ Digitalization (Savia, Verti,

mapfre.com)➢ Focus on the client (Family program,

SMEs and self-employed)➢ Revamp bancassurance channel➢ Delegate and agent network

14

Results

12M 2020


Source: MAPFRE Economics; Integrated Report 2020 & Financial Report December 2020; AGM & Management Insights 2021Figures in million €

3,085

1,575 1,450

BRAZIL LATAM NORTH LATAM SOUTH

-22.4%

-20.2%-9.2%

*Ex-PEMEX+3.4%

€6.1 bn-19.0% in premiums(27% of Group total)

€230 mn+6.9% in results

89.8%-4.6 p.p. in combined ratio

▪ Leading multinational insurance group in the region: ➢ #1 in Non-Life business➢ #3 overall in the market

LATAM

12.0%+1.4 p.p. in ROE

101

7059


4.6%

10.4%

6.8% 92.2%

94.7%

100.0%

87.6%

90.5%

93.9%


12M 2019 12M 2020

Outstanding performance in Brazil, Mexico, Panama, the Dominican Republic and Colombia

LATAM comprises the regional areas of Brazil, LATAM North

and LATAM South

▪ Strategic priorities: ➢ Brazil: focus on growth while improving

profitability levels➢ LATAM North: growth, productivity and

digitalization in Mexico; shared service center in Central America; synergies in P&C and Health in the Dominican Republic

➢ LATAM South: cost adjustment plan and technical improvements; brokers and bancassurance; digital business

15

Results

12M 2020


▪ Second largest market for MAPFRE based on contribution to business

▪ Market leader in profitable segments, while selectively reducing exposure in Auto: ➢ #1 in Agro ➢ #1 in Life-Protection➢ #2 in the Non-Life group➢ #7 in Motor

▪ Excellent performance of the strategic alliance with Banco do Brasil in place since 2010

BRAZIL

€3.1 bn-22.4% in premiums+5.1% at constant

exchange rates(14% of Group total)



11.3%+1.7 p.p. in ROE

444

1,432

1,130

Motor General P&C Life-Protection

-47.4%

-12.1%

-19.3%

15

44

27

Motor General P&C Life-Protection

178.9%

-34.3%

-45.3%

92.2%

107.5%

77.9%

87.6%

100.2%

79.3%

Non-Life Motor General P&C

12M 2019 12M 2020


Consolidating technical management improvements

▪ Strategic priorities: ➢ Profitable growth in local currency➢ Improve technical result➢ Focus on cost contention➢ Focus on channels and products with

better profitability➢ Cancellation of loss-making broker

accounts in Motor

16

Results 12M 2020


▪ Market positions:➢ USA:

#1 in Motor and Homeowners in Massachusetts

➢ Europe: ▪ #6 in Non-Life▪ #11 overall

INTERNATIONAL

€3.6 bn-11.1% in premiums(15% of Group total)



5.2%+0.5 p.p. in ROE

2,098

1,483

NORTH AMERICA EURASIA

-10.0%

-12.5%

76

31


-3.0%

106.3%

100.4%

106.1%

97.7%

98.9%


12M 2019 12M 2020


Significant improvement in results in USA, Turkey, and Italy

INTERNATIONAL comprises the regional areas of North

America and Eurasia

▪ Strategic priorities: ➢ USA: focus on key states➢ Puerto Rico: return to profitability➢ Turkey: technical control of Motor & Health➢ Germany: Auto manufacturers distribution

agreements➢ Italy: cost reduction and efficiency

improvement plan➢ Malta: technological transformation

17

Results

12M 2020


UNITED STATES

€1.7 mn-10.6% in premiums(8% of Group total)



▪ Main market: Northeast (Massachusetts), where MAPFRE is the absolute leader in P&C personal lines with a 22% market share in Private Passenger Auto, 12.5% in Commercial Auto and 13.1% in Homeowners

▪ Restructuring measures:➢ Exit from 5 states in 2018 and commercial

lines outside of Massachusetts in 2019➢ Exit from Arizona and traditional business in

Pennsylvania in 2020➢ Currently evaluating options for Florida

99.3%

101.9%

92.4%

89.0%

Northeast West

12M 2019 12M 2020110

13

-32-13

Northeast West Exit states Verti

41.6%

141.1%

5.5%-165.5%

1,562

94 84

Northeast West Exit businesses

-7.4%

-25.1% -37.8%


Return to growth while maintaining positive claims trends and strict cost control

≈ 7%ROE MAPFRE USA

≈ 8%ROE MAPFRE USA (EXVERTI)

▪ Strategic priorities: ➢ Return to growth in premiums and policies ➢ Agreement with AAA motor club ➢ Customer and agent segmentation ➢ Boost digital business ➢ Operational efficiency & technology➢ New technology platform

Premiums by region Premiums by line

Results

12M 2020

Attributable result

18

Combined ratio

▪ It operates through a global network of 19 representative offices

▪ #16 reinsurer worldwide by premium volume▪ Results are affected by COVID-19 impacts, the

earthquakes in Puerto Rico, as well as high frequency of several other NatCat events

MAPFRE RE

€5.7 bn+1.9% in premiums

(25% of Group total)

€17 mn-70.7% in results

100.6%

1.0%-2.4 p.p. in ROE

-0.4 p.p. in combined ratio

18.9%

42.8%

24.6%

13.8%

Iberia Eurasia Latam North America

40.7%

16.7%

22.1%

13.4%

4.3%2.8%

P&C Auto Global Risks business

Life & Accident Other lines Transport

99.2%

123.5%

101.2%

93.3%

Reinsurance business Global Risks business

12M 2019 12M 2020

2

15

Reinsurance business Global Risks business

178.7%

-97.8%

Source: S&P Global Ratings, Integrated Report 2020 & Financial Report December 2020; AGM & Management Insights 2021Figures in million €

Ability to absorb extraordinary events, supported by prudent approach and financial strength

MAPFRE RE comprises the reinsurance and global risks

businesses

▪ Strategic priorities: ➢ Improvement of margin on the portfolio➢ Continued growth on better priced

business➢ Maintain competitive advantage in terms

of expense ratio

Results

12M 2020

19

▪ Results reflect the impact on Travel insurance in the United Kingdom, Australia and Ireland resulting from the COVID-19 crisis (-21.6 million euros, net of reinsurance)

▪ Exit of 13 countries since 2016, including the recently announced exit of Road China

MAPFRE ASISTENCIA

€619 mn-28.1% in premiums(3% of Group total)

-€21 mn+76.6 in results


Gross operating result by region and business line

REGION ASSISTANCETRAVEL

INSURANCE

SPECIALTY

RISKS

2020 2019UK, FRANCE & BELGIUM 0.1 -8.3 6.3 -1.9 -85.6

REST OF EURASIA -6.7 -12.7 2.6 -16.8 6.1

LATAM -1.2 -3.8 2.8 -2.2 3.5

NORTH AMERICA -8.2 0.6 5.9 -1.7 -14.2

TOTAL -16.0 -24.2 17.6 -22.6 -90.2

TOTAL

Source: Integrated Report 2020 & Financial Report December 2020; AGM & Management Insights 2021Figures in million €

Restructuring in process with a focus on strategic MAPFRE markets

▪ Strategic priorities: ➢ Continued streamlining of

geographical presence, focusing on countries with insurance units

➢ Travel assistance business in Europe and Asia currently under review

Unit specialized in travel and roadside assistance and other

Group specialty risks

3

Balance sheet and solvency

20

21

Balance sheet & investment portfolio

72.5 69.2

12.31.2019 12.31.2020

Investment portfolio

Assets under management

Total assets

Figures in billion €

23.4

8.1

2.2

2.71.42.4

2.5

2.1

44.9

Government fixed income (52.1%)

Corporate fixed income (18.1%)

Real Estate (5%)

Other investments (4.6%)

Cash (5.4%)

Mutual funds (3.2%)

Equity (6%)

Unit Linked (5.6%)

12.31.2019 12.31.2020 % Δ

Assets under management 63.6 55.2 -13.3%

of which:

Investment portfolio 53.5 44.9 -16.1%

Pension funds 5.5 5.8 5.0%

Mutual funds & other 4.6 4.5 -2.2%

Spain 12.8

Italy 2.4

Rest of Europe 2.0

United States 1.5

Brazil 2.2

Rest of LATAM 1.7

Other 0.8

* The fall in balance sheet figures comes primarily from the reclassification of the assets and liabilities from the Bankia MAPFRE Vida operation to the lines held for sale

Capital structure Leverage (%) (1)

Interest coverage (x) (2)

(1) Total Debt / (Total Equity + Total Debt)(2) Earnings before tax & financial expenses (EBIT) / financial expenses

Shareholders’ equity (billion €)

Capital structure & credit metrics

12.31.2019 12.31.2020

8.5

8.8

22

17.3

14.6

12.31.2019 12.31.2020

22.7% 23.3%

12.31.2019 12.31.2020

10.1 9.8

1.1 1.1

1.0 1.0

0.8 0.9

13.1 12.8

12.31.2019 12.31.2020

Equity Subordinated debt

Senior debt Bank financing

Solvency margin

23

High quality

capital baseTier 1: 86%

Tier 2: 14%

200% Solvency II comfort range

including transitionals (+/- 25 p.p.)

Solvency II ratio

Fully loaded*

* Excluding impacts of transitional measures for equity and technical provisions

Figures in billion €

4

Strategic Plan

2019-2021

24

Transforming for growth and improved profitability

Strategic Plan 2019-2021

25

26

WE DO NOT INVEST in companies deriving 30% or more of their revenues from coal-fired energy sources

WE DO NOT INSURE the construction of new coal-powered electric plants or the operation of new coal mines

Gender Equality46.3% of vacancies in

positions of responsibility covered by women

(45% target achieved)

Workforce InclusionPeople with a disability make

up 3.3% of the workforce

(3% target achieved)

Carbon Neutralityin all MAPFRE companies in Spain

and Portugal by 2021 and worldwide by 2030

ESG Indicators


26

Clear priorities, focusing on profitability and optimizing capital allocation going forward


27

Capital allocation

Products

Channels

Focus on core markets > Spain, Brazil, the United

States and Mexico

Lower future capital allocation in non-core

markets > mainly focused on strategic channels and

business lines

De-risking of non-strategic assets and operations

Focus on personal linesDevelop Health and Life Protection in LATAM >

focused on bancassurance

Leverage growth opportunities in reinsurance

through MAPFRE RE

Continue developing

multi-channel approach

Organic growth in digital channel > focusing on

MAPFRE.com and Verti brand

Develop new distribution and bancassurance agreements >

both exclusive and non-exclusive

28


28

(1) Excluding goodwill writedowns

(2) Excluding any potential capital gains from Bankia transaction

(3) Excluding capital gains and relevant NatCat events

2021 Financial Targets

ROE(average 2019-21)

Combined ratio(average 2019-21)

Total revenue

8%-9%7.8% (1)

average≈ 8.5% (2)

96-97% 96.2%

average≈ 95%

€28-€30 bn≈ €25.4 bn

in 2020≈ 25.4 bn

-€763 mnin 2020

≈ €700 mn

>50% 73% in 2020>50%,

unchanged

Adjusted net income(3)

2019-21Target

Status 2021Guidance

Payout

29


29

Growth, digital transformation and focus on the client

Figures at December 2020

Digital business€1.1 bn in premiums

4.8 mn self-directed clients

Priority for 2021:Continue growing, with the

implementation of an advanced model of customer attention and the expansion of the digital offer

Motor

Priorities for 2021:Developing solutions

ADASPay-per-use

On/Off Insurance

Recover and defend leading position

Life

Priorities for 2021:New operating model

for underwriting, issuing and claims processing

New technology platform

NPSAbove peer average in 82% of markets

(exceeding annual objective)

Measured in Spain, United States, Brazil, Mexico, Chile, Peru

and Puerto Rico

Client experience

Priorities for 2021:Improving retention and

cross-selling

Hybrid digital and face-to-face model for the MAPFRE

network

Innovation in MAPFRE

MAPFRE OPEN INNOVATION

30

Benchmarks in

Insurtech

Strategic Innovation Disruptive Innovation CESVIMAP

Case BuilderProject Factory

#innovaIntrapreneurship

Insur-spaceAcceleration and

adoption

Venture CapitalInvestment

UniversitiesResearch and

entrepreneurship

Mobility LabR&D

Startups radarMonitoring &

Scouting

700,000clients

benefitted from

MoI

Developing projects

based on

Artificial

Intelligence

5

Stock market performance and shareholder remuneration

31

Shareholder composition

32Information to December 2020

Commitment to shareholders

• Interim dividend for 2020 results: 0.0505 euros gross per share paid on December 22, after having proportionately applied the amount corresponding to treasury stock to the remaining shares.

• Final dividend for 2020: 0.075 euros gross per share approved by the Annual General Meeting on March 2021.

• Total dividend against 2020 results: 0.125 euros gross per share, which implies a payout ratio of 73.1 percent.

Shareholder distribution Returning to sustainable dividend path

2012 2013 2014 2015 2016 2017 2018 2019 2020

Earnings per share (euros) 0.22 0.26 0.27 0.23 0.25 0.23 0.17 0.20 0.17

Dividend per share (euros) 0.11 0.13 0.14 0.13 0.145 0.145 0.145 0.145 0.125

Payout (%) 50.9% 50.6% 51.0% 56.5% 57.6% 63.7% 84.4% 73.3% 73.1%

Million euros

338.8

400.3431.1

400.3446.5 446.5 446.5 446.5

384.9

2012 2013 2014 2015 2016 2017 2018 2019 2020

Share performance

December 31, 2019 – December 31, 2020At December 31, 2020

Market cap 4.9 BN €

January – December 2020

MAPFRE -32.5%

IBEX 35 -15.5%

Stoxx Insurance -13.5%

Spanish banks -27.3%

33

Spanish Banks: the six Spanish banks with the greatest market cap

The Group’s parent company is MAPFRE S.A., whose shares are listed on the Madrid and Barcelona Stock Exchanges. MAPFRE S.A. is also a component of the IBEX 35, IBEX Top Dividend, MSCI World SMID Cap Index, FTSE All-World, FTSE Developed Europe, FTSE4Good, FTSE4Good IBEX, Dow Jones Sustainability World Index, Euronext Vigeo Europe 120, Euronext Vigeo Eurozone 120 and Ethibel Sustainability Index Excellence Europe.

6

Conclusions Our differentiating investment case

34

Why MAPFRE is a

differentiating value

Attractive comparison value

Rigorous technical control of the business

Strict capital management and risk diversification

Multiline and multichannel

Geographic diversity

Management

Independent company

Human team as a key value in the organization

Responsible and committed to ESG

Culture

Shareholder stability

Dependable company

Competitive dividend policy

Value

Multichannel approach

Reinforced internal structure and greater operating efficiency

with capacity to generate high recurring profits

Focus on the client

Professional information systems and teams

to achieve excellence

Technology, digitalization and transformation as allies

Commitment to innovation

Strategy

35

36

Felipe Navarro

Capital Markets and Investor Relations

Director

Leandra Clark

Investor Relations

Leslie Hoffman

Investor Relations

Marta Sanchidrián

Investor Relations

Fernando Garcíade la SantaInvestor Relations

Who are we?The Investor Relations team

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 dividends represents a simple forecast whose formulation does not represent a guarantee with respect to the future performance of the Company or the achievement of its targets or estimated results. The recipients of this information must be aware that the preparation of these forecasts is based on assumptions and estimates, which are subject to a high degree of uncertainty, and that, due to multiple factors, future results may differ materially from expected results. Among such factors, the following are worth highlighting: the development of the insurance market and the general economic situation of those countries where the Group operates; circumstances which may affect the competitiveness of insurance products and services; changes in the basis of calculation of mortality and morbidity tables which may affect the insurance activities of the Life and Health segments; frequency and severity of claims covered; effectiveness of the Groups reinsurance policies and fluctuations in the cost and availability of covers offered by third party reinsurers; changes in the legal environment; adverse legal actions; changes in monetary policy; variations in interest rates and exchange rates; fluctuations in liquidity and the value and profitability of assets which make up the investment portfolio; restrictions in the access to third party financing.

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

Certain numerical figures included in the Investor Presentation have been rounded. Therefore, discrepancies in tables between totals and the sums of the amounts listed may occur due to such rounding.

Disclaimer

37

Presentación de PowerPoint - MAPFRE · 2021. 5. 20. · 17 Results 12M 2020 Premiums Attributable...

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