SISTEMA MAPFRE IN 2002 17 March 2003
SISTEMA MAPFRE (THE MAPFRE GROUP) A MULTINATIONAL INSURANCE AND REINSURANCE GROUP STOCK BROKERAGE FIRM MUTUAL FUNDS MANAGEMENT COMPANY PENSION FUNDS MANAGEMENT COMPANY REAL ESTATE COMPANY SERVICE COMPANIES SIX PRIVATE FOUNDATIONS 2
I. THE ORGANISATION OF MAPFRE IN 2002 (1) 2001 2002 Var. COMPANIES 223 229 6 Spain 84 89 5 Other countries 139 140 1 COUNTRIES 37 37 - EMPLOYEES 16,756 18,230 8.8% Spain 8,570 9,523 11.1% Other countries 8,186 8,707 6.4% 3
I. THE ORGANISATION OF MAPFRE IN 2002 (2) 2001 2002 %Var. BRANCHES 2,945 3,147 7 Spain (1) 2,422 2,637 9 Other countries 523 524 - AGENTS 44,452 45,170 2 Spain 23,830 23,967 - Other countries 20,622 21,203 3 (1) Figures do not include Caja Madrid branches (1,906 as at Dec. 2002). 4
II. TOTAL INCOME OF SISTEMA MAPFRE 2001 2002 % Var. Direct insurance premiums 7,143 7,186 0.6 (1) Accepted reinsurance 489 555 13 premiums Income from investments 939 1,178 25 Other (2) 362 386 7 Total 8,933 9,305 4 (1) 11% increase excluding externalisation transactions in both years (2) Includes other non-technical income and income from equity-accounted companies 5
III. CONSOLIDATED BALANCE SHEET 2001 2002 % Var. Capital and reserves (1) 2,216 2,205 - Total assets 16,495 18,110 10 Funds under management 19,276 20,760 8 Insurance companies 16,492 18,110 10 Mutual funds 2,202 1,969-10 Pension funds 582 681 17 Result of the solvency margin 1,813 1,727-5 (1) Includes minority shareholders 6
IV. CONSOLIDATED RESULTS 2001 2002 % Var. Profit before taxes 316 440 39.2 Profit after taxes 245 327 33.5 Profit attributable to the parent company 140 206 47.1 7
V. POSITION IN THE SPANISH MARKET (1) Ranking of insurance groups by Non-life premiums volume 2002 2001 2001 Amount % Share Amount % Share Ranking 1 MAPFRE 3,399 15.8% 2,883 15.1% 1 2 Allianz 1,471 6.8% 1,253 6.6% 2 3 Generali 1,104 5.1% 1,092 5.7% 3 4 Axa 1,044 4.9% 934 4.9% 4 5 Zurich 972 4.5% 861 4.5% 5 8
V. POSITION IN THE SPANISH MARKET (2) Ranking of insurance groups by Life premiums volume 2002 2001 2001 Amount % Share Amount % Share Ranking 1 Caifor 3,313 12.3% 1,964 8.6% 2 2 Antares 3,069 11.4% 666 2.9% 11 3 MAPFRE 2,214 8.2% 2,571 11.2% 1 4 Aviva 1,911 7.1% 1,583 6.9% 5 5 BBVA 1,539 5.7% 1,674 7.3% 4 9
V. POSITION IN THE SPANISH MARKET (3) Ranking of insurance groups by total direct insurance premiums volume 2002 2001 2001 Amount % Share Amount % Share Ranking 1 MAPFRE 5,613 11.6% 5,445 13.0% 1 2 Caifor 3,383 7.0% 2,023 4.8% 4 3 Antares 3,069 6.3% 666 1.6% 15 4 Generalli 2,248 4.6% 2,097 5.0% 3 5 Allianz 2,022 4.2% 2,186 5.2% 2 10
V. POSITION IN THE SPANISH MARKET (4) Market Share (%) 2000 2001 2002 Motor 18.6 19.4 19.9 Health 2.2 7.2 7.5 Other Non-life 9.6 12.6 14.2 Total Non-life 12.6 15.1 15.8 Life 7.2 11.2 8.2 Total 9.3 13.0 11.6 11
VI. ORGANISATIONAL CHART OF SISTEMA MAPFRE BANCO MAPFRE CAJA MADRID AND SUBSIDIARIES 49% MAPFRE MUTUALIDAD FOUNDATIONS MOTOR INSURANCE UNIT 100% DIRECT SUBSIDIARIES SPECIALISED SUBSIDIARIES 51% MAPFRE CAJA MADRID HOLDING 56% CORPORACIÓN MAPFRE 99% 100% 100% 100% 83% 100% 85% 100% LIFE, SAVINGS AND INVESTMENTS UNIT GENERAL INSURANCE UNIT MAPFRE CAJA SALUD COMMERCIAL INSURANCE UNIT REINSURANCE UNIT ASSISTANCE UNIT AMERICAS UNIT MAPFRE INMUEBLES MAPFRE VIDA MAPFRE SEGUROS GENERALES SUBSIDIARIES MAPFRE INDUSTRIAL MAPFRE RE MAPFRE ASISTENCIA MAPFRE AMERICA SUBSIDIARIES 100% MAPFRE INVERSION MAPFRE FINISTERRE MAPFRE CAUCION Y CREDITO MAPFRE REINSURANCE CORPORATION SUBSIDIARIES (SIAM) SUBSIDIARIES MAPFRE AGROPECUARIA MAPFRE VIDA PENSIONES MAPFRE GUANARTEME SUBSIDIARIES FOREIGN SUBSIDIARIES AND REPRESENTATIVE OFFICES FOREIGN SUBSIDIARIES AND REPRESENTATIVE OFFICES 100% MAPFRE AMERICA VIDA OTHER SUBSIDIARIES OTHER SUBSIDIARIES SUBSIDIARIES 12
VII. INTERNATIONAL PRESENCE TORONTO MOSCOW NEW JERSEY GALWAY LONDON FRANKFURT MEXICO FLORIDA DOMINICAN REPUBLIC GUATEMALA HONDURAS PUERTO RICO EL SALVADOR COSTA RICA NICARAGUA PANAMA VENEZUELA COLOMBIA BRUSSELS BUDAPEST LUXEMBOURG PARIS MILAN ISTANBUL OPORTO LISBON ATHENS TUNIS ECUADOR BRAZIL PERU BOLIVIA PARAGUAY BAHRAIN PHILIPPINES CHILE URUGUAY ARGENTINA DIRECT INSURANCE REINSURANCE ASSISTANCE 13
VIII. SPANISH NETWORK 64 18 132 22 40 23 55 6 191 41 18 5 191 68 392 216 77 25 167 1,014 306 104 41 22 99 21 212 134 475 140 59 19 2 6 3 0 113 22 MAPFRE GROUP: 2,637 CAJA MADRID: 1,906 14
IX. RATINGS Company Standard & Poor s AM BEST MUTUALIDAD AA- (VERY STRONG) Positive outlook A+ (SUPERIOR) CORPORACIÓN MAPFRE A+(STRONG) Positive outlook (Issuer Credit Rating) MAPFRE RE A+ (STRONG) A+ (SUPERIOR) Positive outlook MAPFRE ASISTENCIA -- A+g (SUPERIOR) SEGUROS TEPEYAC -- A- (EXCELLENT) PRAICO -- A (EXCELLENT) -- 15
X. KEY FACTS MANAGEMENT RESTRUCTURING. EXCELLENT RESULTS, WHICH EXCEEDED TARGETS IN SPITE OF THE ECONOMIC ENVIROMENT AND THE DEVALUATIONS IN AMERICA. SUCCESS OF THE MAPFRE-CAJA MADRID ALLIANCE. CONTINUED INTERNATIONAL EXPANSION: STRONGER PRESENCE IN THE NORTH AMERICAN REINSURANCE AND ASSISTANCE MARKETS. IMPROVEMENT IN THE RESULTS OF THE AMERICAN SUBSIDIARIES. 18.7% INCREASE IN THE CORPORACION MAPFRE SHARE PRICE. COLLECTIVE AGREEMENT. 16
XI. STRATEGIC GOALS 2003-2005 (1) 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. 17
XI. STRATEGIC GOALS 2003-2005 (2) 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. 18
XI. STRATEGIC GOALS 2003-2005 (3) HARMONISE THE EXTERNAL IMAGE OF MAPFRE WITH ITS CORPORATE IDENTITY. COORDINATE ACTION PLANS WITH RESPECT TO QUALITY CONTROLS AND RATINGS. INCREASE PRODUCTIVITY. STREAMLINE AND CODIFY INTERNAL REGULATIONS. INTERNATIONAL DEVELOPMENT OF MAPFRE: EUROPEAN EXPANSION. SPEARHEAD OPERATION IN FLORIDA. ANALYSIS OF A FUTURE PRESENCE IN CHINA. 19
XII. ECONOMIC TARGETS 2003-2005 TOTAL INCOME VOLUME IN 2005: 11,206 MILLION. TOTAL PREMIUMS VOLUME IN 2005: 9,403 MILLION. CONSOLIDATED PRE-TAX RESULT IN 2005: 579 MILLION. 20
XIII. CORPORACION MAPFRE 2001 2002 Var. Total income 6,913 6,944 - Consolidated pre-tax result 212 259 13 Net attributable profit 96 113 17 Earning per share (euros) 0.53 0.62 17 Dividend per share (euros) 0.19 0.19 - Consolidated shareholders equity 1,162 1,077-7 Total consolidated assets 14,021 15,238 9 Result of the solvency margin 1,515 1,347-11 Trading on the Stock Exchange Days 250 250 - Frequency 100% 100% - Volume 1,119 1,149 3 21
XIV. MAPFRE CAJA MADRID HOLDING 2001 2002 % Var. Total income 4,340 4,445 4 Premiums issued 3,722 3,694 - Consolidated pre-tax result 172 191 11 Net attributable profit 111 122 10 Earnings per share (euros) 0.61 0.62 2 Consolidated shareholders equity 866 954 10 Total consolidated assets 10,452 12,260 17 Result of the solvency margin 939 912-3 22
UNIT AND COMPANY FIGURES 23
I. MOTOR * 2001 2002 % Var. Total income 1,875 2,147 15 Premiums issued 1,640 1,847 13 Consolidated pre-tax result 127 171 35 Net attributable profit 101 129 28 Consolidated shareholders equity 791 910 15 Total consolidated assets 2,468 2,855 16 Result of the solvency margin 966 1,163 20 Insured vehicles (thousand) 3,786 4,197 11 New policies (thousand) 542 670 24 Rebates to mutualists 794 910 15 * Includes MAPFRE MUTUALIDAD, MARES and MAPFRE SEGUROS GERAIS (Portugal) 24
II. LIFE * 2001 2002 % Var. Total income 3,149 2,877-9 Premiums issued 2,647 2,230-16 Consolidated pre-tax result 96 103 7 Net attributable profit 70 76 9 Consolidated shareholders equity 350 374 7 Total consolidated assets 8,433 9,902 17 Result of the solvency margin 494 400-20 Total funds under management 10,956 12,198 11 Return on equity (%) 21.1 21 - * Includes MAPFRE VIDA, MAPFRE CAJA MADRID VIDA, MAPFRE INVERSIÓN and MAPFRE VIDA PENSIONES 25
III. SEGUROS GENERALES * 2001 2002 % Var. Total income 740 857 16 Premiums issued 655 787 20 Consolidated pre-tax result 69 74 7 Net attributable profit 43 44 2 Consolidated shareholders equity 200 208 4 Total consolidated assets 1,207 1,371 14 Result of the solvency margin 110 144 31 * Includes MAPFRE SEGUROS GENERALES, MAPFRE GUANARTEME, MAPFRE FINISTERRE and ORIENTE 26
IV. MAPFRE AMÉRICA 2001 2002 % Var. Total income 1,681 1,589-5 Premiums issued 1,516 1,341-11 Consolidated pre-tax result 28.6 43.9 53 Net attributable profit 18.1 26.5 46 Consolidated shareholders equity 560 535-4.5 Total consolidated assets 2,172 1,747-20 Result of the solvency margin 398 361-10 New investments 66 97 47 27
V. MAPFRE AMÉRICA VIDA 2001 2002 % Var. Total income 190 212 12 Premiums issued 152 167 10 Consolidated pre-tax result -5.5-14.7-267 Net attributable profit -3.6-10.5-292 Consolidated shareholders equity 76 57-25 Total consolidated assets 326 259-21 Result of the solvency margin 106 72-32 Technical provisions + funds under management 499 473-5 28
VI. REINSURANCE 2001 2002 % Var. Total income 831 889 7 Premiums issued 688 760 10 Consolidated pre-tax result -2.3 30.2 - Net attributable profit 0.8 22.7 2,837 Consolidated shareholders equity 270 267-1 Total consolidated assets 1,278 1,277 - Result of the solvency margin 205 172-16 29
VII. ASSISTANCE 2001 2002 % Var. Total income 222 206-7 Premiums issued 147 127-16 Consolidated pre-tax result 4.3 5.1 19 Net attributable profit 2.8 3.8 36 Consolidated shareholders equity 51 49-4 Total consolidated assets 127 118-7 Result of the solvency margin 42 39-7 Countries (direct presence) 35 36 1 country 30
VIII. MAPFRE CAJA SALUD 2001 2002 % Var. Total income 153 255 67 Premiums issued 146 246 68 Consolidated pre-tax result 5.5 11.5 109 Net attributable profit 3.5 7.1 101 Consolidated shareholders equity 76 83 9 Total consolidated assets 107 130 21 Result of the solvency margin 50 44-12 Policyholders (thousand) 634 724 14 31
IX. MAPFRE AGROPECUARIA 2001 2002 % Var. Total income 109 142 30 Premiums issued 97 129 33 Consolidated pre-tax result 6.4 7.9 23 Net attributable profit 5.9 6 3 Consolidated shareholders equity 42 47 12 Total consolidated assets 148 171 16 Result of the solvency margin 35 42 20 32
X. COMMERCIAL INSURANCE UNIT* 2001 2002 % Var. Total income 302 460 52 Premiums issued 274 432 58 Consolidated pre-tax result 10.7 19.9 86 Net attributable profit 6.3 12.8 103 Consolidated shareholders equity 52.1 60.7 17 Total consolidated assets 505 616 22 Result of the solvency margin 47 49 4 Insured sales under credit insurance 22,266 27,191 22 * Includes MAPFRE Caución y Crédito and MAPFRE Industrial 33
XI. MAPFRE INMUEBLES 2001 2002 % Var. Total income 60 35-42 Consolidated pre-tax result 18 5.7-68 Net attributable profit 11.7 3.5-70 Consolidated shareholders equity 44 44 - Total consolidated assets 83 84 1 Development of residential dwellings Properties sold 236 385 63 Properties under construction 87 89 2 Properties being projected 572 445-22 34
MAPFRE FOUNDATIONS ALTRUISTIC CONTRIBUTION TO ACTIVITIES OF GENERAL INTEREST: EDUCATION AND TRAINING LITERARY, ARTS AND SCIENTIFIC AWARDS RESEARCH GRANTS PUBLICATIONS ART EXHIBITIONS AND CONCERTS DIVULGEMENT CAMPAIGNS LIBRARIES IN THE AREAS OF SAFETY AND THE ENVIROMENT, ROAD SAFETY, BUSINESS ADMINISTRATION, HEALTH AND MEDICINE, ART, CULTURE AND HISTORICAL STUDIES WIDE AND GROWING SCIENTIFIC, CULTURAL AND TEACHING ACTIVITIES IN SPAIN, PORTUGAL AND LATIN AMERICA. 16 MILLION CONTRIBUTED TO THEIR ACTIVITIES IN 2002. NEW CONTRIBUTIONS FROM SISTEMA MAPFRE COMPANIES FOR 18 MILLION. 35
ACTIVITIES OF THE FOUNDATIONS IN 2002 307 ACADEMIC COURSES, MEETINGS AND SEMINARS OF SCIENTIFIC AND CULTURAL NATURE. 201 EDUCATION SCHOLARSHIPS, 112 RESEARCH SCHOLARSHIPS, 65 SCHOLARSHIPS FOR THE HANDICAPPED. 37 BOOKS, 13 ELECTRONIC PUBLICATIONS AND 20 ISSUES OF SPECIALISED MAGAZINES. 65 EXHIBITIONS, BOTH PERMANENT AND TRAVELING 10 th EDITION OF THE DEGREE IN INSURANCE (4,540 HOURS OF LESSONS AND 6 ACADEMIC YEARS) 31 MASTER COURSES. 40 COOPERATION AGREEMENTS WITH OTHER SCIENTIFIC, ACADEMIC OR ASSISTANCE INSTITUTIONS 1 JOURNALISM AWARD ("GONZÁLEZ RUANO") AND 1 DRAWING AWARD ("RAFAEL PENAGOS"). 16 AWARDS TO WORKS PRESENTED IN SCIENTIFIC MEETINGS. 36
SISTEMA MAPFRE IN 2002 17 March 2003