COMMITMENT TO SHAREHOLDERS: Dividend maintained ( 447 million charged against 2018 results).

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Leonard Jennings
5 years ago
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SUSTAINABILITY: 702 million generated in the

COMMITMENT TO SHAREHOLDERS: Dividend maintained (

2 SUSTAINABILITY: 702 million generated in the fiscal year*. REINFORCING THE BALANCE SHEET: Goodwill writedown in the amount of 173 million. COMMITMENT TO SHAREHOLDERS: Dividend maintained ( 447 million charged against 2018 results). *Excluding goodwill impairment, net earnings stand at 529 million euros.

KEY ASPECTS FREQUENCY OF CATASTROPHIC IMPACT OF CONVERSION INSTABILITY OF FINANCIAL 3 RISKS DIFFERENCES MARKETS IMPACT 2017: 184 million 2018: Dollar 3.5% Real 15.8% Lira 25.

3 KEY ASPECTS FREQUENCY OF CATASTROPHIC IMPACT OF CONVERSION INSTABILITY OF FINANCIAL 3 RISKS DIFFERENCES MARKETS IMPACT 2017: 184 million 2018: Dollar 3.5% Real 15.8% Lira 25.0% All currencies decline against the euro. IMPACT ,439M less in premiums 34M less in earnings * Financial income affected by prolonged low interest rate environment and market volatility. 108 million 103M less in Shareholders Equity Includes restatement of 18 million euros due to hyperinflation in Argentina

4 KEY ASPECTS OF THE YEAR FOCUS ON PROFITABLE GROWTH SOLVENCY II 208% ** RATIO 4 SPAIN * -* PRINCIPAL EARNINGS CONTRIBUTOR 481M Net earnings +5.3% w/o extraordinary items SOLIDITY OF MAPFRE RE 149M Net earnings Impact of 96.6 millon euros from catastrophic events RELEVANT IMPROVEMENTS Mexico Italy Global Risks Asistencia RESTRUCTURING COUNTRIES Brazil USA IMPROVED RATINGS AND OUTLOOK ROE (Excl. goodwill writedown) 8.4% FITCH STANDARD & POOR S MOODY S *** * Consolidates MAPFRE Portugal data in its accounts ** 195.6% pro-forma adjustment for the Brazil transaction *** 6.4% icluding the goodwill writedown

5 THE FIGURES AT A GLANCE ATTRIBUTABLE EARNINGS 702 (+0.3%) w/o goodwill writedown % PREMIUMS NON-LIFE COMBINED RATIO 97.6% p.p % at constant exchange rates 22,537-4% ROE* CONSOLIDATED REVENUE 6.4% +0.8% at constant exchange rates 26,590-5% -1.5 p.p Millons of euros *8.4% excluding goodwill writedown

PREMIUMS/EARNINGS BY BUSINESS AREA PREMIUMS NET EARNINGS

INTERNATIONAL 47 IBERIA 481 149 24-10 ASISTENCIA 911-7%

RISKS +85% ASISTENCIA Millions of de euros Data not

6 PREMIUMS/EARNINGS BY BUSINESS AREA PREMIUMS NET EARNINGS 6 INSURANCE 18,736-3% +4%* RE 3,787-10% 685 LATAM 157 INTERNATIONAL 47 IBERIA ASISTENCIA 911-7% GLOBAL RISKS 1,174-7% -17% INSURANCE -8% RE +136% GLOBAL RISKS +85% ASISTENCIA Millions of de euros Data not adjusted for consolidation *Data in blue at constant exchange rates

INSURANCE UNIT PREMIUMS BY REGION 7,658 18,736 IN PREMIUMS -3% +4% * 7 3,972 2,425 1,766 1,606 1,309 +10% -13% -4% -6% -5%

7 INSURANCE UNIT PREMIUMS BY REGION 7,658 18,736 IN PREMIUMS -3% +4% * 7 3,972 2,425 1,766 1,606 1, % -13% -4% -6% -5% -26% IBERIA BRAZIL NORTH AMERICA EURASIA LATAM SOUTH LATAM NORTH Millions of euros *Data in blue at constant exchange rates

8 A DIVERSIFIED BUSINESS DISTRIBUTION OF PREMIUMS LIFE HEALTH 5.1% (4.8%) AUTO 27.9% (28.1%) % (18%) REINSURANCE 22% (22.3%) P&C 25.2% (26.8%) (%) Prvious year Data not consolidated

9 FINANCIAL OBJECTIVES Combined Ratio <96% Expense Ratio <28% Revenues > 31,000M ROE >11% Payout 50-65% 97.6% 27.8% 26,590M 8.4% 64% Affected by natural disasters 96.8% Average CR w/o cat. 2,800M in premiums at constant exchange rates * 1,300M in non-renewed premiums as part of 80/20 program 6.4% including goodwill writedown 84% including goodwill writedown * Excluding the impact from hyperinflationary economies

5%* NON-LIFE LIFE FINANCIAL OTHER INCOME TOTAL PREMIUMS (LIFE /

11 REVENUES AND PREMIUMS 17,061 CONSOLIDATED REVENUES 26,590M -5% 11 5,476 2,575 1,478-6% + 2,8% - 8,1% -13,2% +0.2%* +8.5%* NON-LIFE LIFE FINANCIAL OTHER INCOME TOTAL PREMIUMS (LIFE / NON-LIFE) 22,537M in % +2.1%* Millions of euros *Data in blue are at constant exchange rates

EARNINGS BREAKDOWN NET EARNINGS 529M -24.5% 12 912 682 702 529-90 -453-349 -173-3.6% -5.3% + 42.6% +10.4% - 12.4% +0.

12 EARNINGS BREAKDOWN NET EARNINGS 529M -24.5% % -5.3% % +10.4% % +0.3% - NON-LIFE LIFE OTHER CONCEPTS * TAXES NON- CONTROLLING INTERESTS OPERATING RESULT GOODWILL WRITEDOWN NET EARNINGS Millions of euros *Includes other activities, Holding costs and hyperinflation adjustments

ROE ROE GROUP 8.4% * 13 12.3% 11.6% 11% 7.1% 7% 5.3% 2.8% 1.

13 ROE ROE GROUP 8.4% * % 11.6% 11% 7.1% 7% 5.3% 2.8% 1.9% SPAIN RE LATAM SOUTH LATAM NORTH GLOBAL RISKS BRAZIL NORTH AMERICA EURASIA *6.4% including goodwill writedown

REGIONAL COMBINED RATIOS GROUP COMBINED RATIO +97.6% 14 90.8% Automobile 91.9% 93.8% 96.1% 97.3% 98.

14 REGIONAL COMBINED RATIOS GROUP COMBINED RATIO +97.6% % Automobile 91.9% 93.8% 96.1% 97.3% 98.1% 98.5% 102.1% 106.7% GLOBAL RISKS IBERIA MAPFRE RE LATAM SOUTH LATAM NORTH BRAZIL NORTH AMERICA EURASIA

GROUP OVERVIEW TOTAL ASSETS -0.4% 67,570 67,291 DEC. 2017 DEC.

7,994 BALANCE 01/01/2018 RESULT FOR THE PERIOD DIVIDEND

15 GROUP OVERVIEW TOTAL ASSETS -0.4% 67,570 67,291 DEC DEC M SHAREHOLDERS EQUITY -7% 8, ,994 BALANCE 01/01/2018 RESULT FOR THE PERIOD DIVIDEND UNREALIZED GAINS CURRENCY DIFFERENCES OTHER BALANCE 01/01/2019 Millions of euros

INVESTMENTS AND CASH Millions of euros INVESTMENT PORTFOLIO EQUITIES AND FUNDS 8% 49,274-1% REAL ESTATE 4% 27,596M in public debt 8,922M in corporate debt 476M in alternative investments FIXED INCOME

16 INVESTMENTS AND CASH Millions of euros INVESTMENT PORTFOLIO EQUITIES AND FUNDS 8% 49,274-1% REAL ESTATE 4% 27,596M in public debt 8,922M in corporate debt 476M in alternative investments FIXED INCOME AND OTHER 83% CASH 5% 27,596M IN PUBLIC DEBT CONCEPT Spain 15,998 Rest of Europe 5,050 United States 1,347 Brazil 2,872 Latin America - Rest 1,805 Other countries 525 TOTAL 27,596 More than 73% of private investments correspond to companies with ESG RATINGS 16

17 CAPITAL AND SOLVENCY CAPITAL STRUCTURE SOLVENCY 17 11,868M SOLVENCY II RATIO 207.9% * EQUITY SENIOR DEBT SUBORDINATED DEBT OTHER BANK DEBT 78% 8% 9% 5% Tier 1 8,110m (88%) Tier 2 1,106m (12%) COVERAGE RATIO 22% *3Q

SPAIN -4 % 134 PORTUGAL +16% +2% +14% LIFE AUTOMOBILE GENERAL P&C 664

18 INSURANCE BUSINESS PREMIUMS REGIONAL BREAKDOWN IBERIA 7,658 IN PREMIUMS +10% SPAIN GROWTH DRIVER 18 7,524 2,583 2,283 1, % SPAIN -4 % 134 PORTUGAL +16% +2% +14% LIFE AUTOMOBILE GENERAL P&C % HEALTH AND ACCIDENT INSURED VEHICLES 5,740,018 (units) +2.4% Millions of euros

LATAM SOUTH -5% -14% LATAM NORTH -26% LATAM NORTH 719-39 % MEXICO** 204-6 % PANAMA LATAM SOUTH 131 +5 % 77 +6 %

19 INSURANCE BUSINESS REGIONAL PREMIUMS BREAKDOWN LATIN AMERICA 6,887 IN PREMIUMS BRAZIL -13% +3.7%* 3,972 1,309 Millions of euros *Data in blue in local currency ** +9% excluding Pemex policy effect 1,606 LATAM SOUTH -5% -14% LATAM NORTH -26% LATAM NORTH % MEXICO** % PANAMA LATAM SOUTH % % +9%* -3%* +13%* +12%* DOMINICAN REP. HONDURAS % % % % +10%* +3%* -3%* +58%* PERU COLOMBIA CHILE ARGENTINA 19

INSURANCE BUSINESS REGIONAL PREMIUMS BREAKDOWN 2,425

+5% +42% NORTH AMERICA EURASIA -4%* -1%* +23%* +56%* USA

20 INSURANCE BUSINESS REGIONAL PREMIUMS BREAKDOWN 2,425 INTERNATIONAL 4,191 IN PREMIUMS -5% 20 1,766 2,038-3% NORTHEAST REGION 1, %* % -6% -7% -26% +1% +11% +18% +5% +42% NORTH AMERICA EURASIA -4%* -1%* +23%* +56%* USA TURKEY ITALY MALTA PUERTO GERMANY INDONESIA RICO Millions of euros *Data in blue in local currency

21 SHARE PRICE MAPFRE S.A IBEX 35 STOXX INSURANCE MAPFRE -13 % +0.4% -10% -13% -15% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov 2018 Dec IBEX % -10.5% MARKET CAPITALIZATION 7,145 at Stoxx Insurance % -9.2% Millions of euros

22 KEY SOCIAL ASPECTS OF THE PERIOD functional and gender Equality geographic Mobility 40.8% WOMEN MANAGERS OBJECTIVE 2018: 40% +12.1% OBJECTIVE 2018: 10%

23 KEY SOCIAL ASPECTS OF THE PERIOD Corporation tax: 453M (34%) social Inclusion Number of eomployees: 35,390 (97% permanent) Opportunities for more than 2.5% OF WORKFORCE COMPRISING PEOPLE WITH DISABILITIES OBJECTIVE 2018: 2% 252,000 people (distributors, providers etc.)

AS A RESULT OF ALL OF THIS WE MAINTAIN THE REMUNERATION

145 per share charged against 2018 results.

25 AS A RESULT OF ALL OF THIS WE MAINTAIN THE REMUNERATION TO OUR SHAREHOLDERS DIVIDEND FOR THE FINANCIAL YEAR: per share charged against 2018 results. In total, 447 million PAYOUT OF 84% IN 2018 (64% excluding goodwill writedown) 5.5% Return over average share price 1,341M To shareholders, entirely in cash, for the period

26 Sustainability and of growth results 2018: 702M * 2017: 700M PREMIUMS +3% ** *Net earnings are 529 million euros including goodwill writedown ** Eliminating the effect of the PEMEX policy and Life groups at constant exchange rates

STRENGTHS of MAPFRE in Spain MAPFRE (+8%) beats the market (1.3%), and enjoys best growth rate in Spain among the Top 5.ntre las 5 primeras. The company s market share in Spain is up, standing at 11.

27 STRENGTHS of MAPFRE in Spain MAPFRE (+8%) beats the market (1.3%), and enjoys best growth rate in Spain among the Top 5.ntre las 5 primeras. The company s market share in Spain is up, standing at 11.3% (against 10.6% for the previous year). Spectacular growth in Life (+20.03%), while the markets falls off -1.68%. We lead the Auto ranking, with a share of 20% and also Multirisk, with a share of 17.1%. We continue to improve customer service, and they rank us well above the average for the sector. (Premium volume. Data: ICEA) *NPS (Net Promoter Score) is an indicator that aids in measuring loyalty of clients to the brand, product or service, on the basis of rcommendations

28 GROWTH LEVERS NEW BANCASSURANCE AGREEMENTS DIGITAL BUSINESS Digital business premiums: 1,509M +10% vs % INNOVATION MAPFRE Open Innovation

29 FINANCIAL STRENGTHS OF THE YEAR RATINGS SOLVENCY POSITION QUALITY OF CAPITAL COVERAGE RATIO EXPENSE RATIO TECHNICAL RESULT COMBINED RATIO

30 conclusions MAPFRE DELIVERS Financial strength and prudent management facilitate maintaining commitment to shareholders. MAPFRE IS TRANSFORMING Restructuring undertaken puts the company in an excellent competitive position to grow profitably over the next three years.

MAPFRE POSTS REVENUES OF BILLION EUROS FOR 2017, UP 3.3 PERCENT, WITH EARNINGS TOPPING 700 MILLION EUROS HIGHLIGHTS OF THE YEAR

MAPFRE POSTS REVENUES OF BILLION EUROS FOR 2017, UP 3.3 PERCENT, WITH EARNINGS TOPPING 700 MILLION EUROS HIGHLIGHTS OF THE YEAR MAPFRE POSTS REVENUES OF 27.98 BILLION EUROS FOR 2017, UP 3.3 PERCENT, WITH EARNINGS TOPPING 700 MILLION EUROS HIGHLIGHTS OF THE YEAR Premiums exceed 23.4 billion euros, an increase of 2.9 percent. The