Results

MAPFRE wants its shareholders to have access to the information about the company – results, dividend payments, and relevant events. The Financial Newsletter provides a summary of the most important information about the Group during the period. You can also find the archive of previous newsletters, as well as fill out the form to sign up to receive the newsletter.

Results June 2018

MAPFRE consolidated revenue reached 14.1 billion euros, and attributable result reached 385.7 million euros.

Million euros.

Revenue June 2018

MAPFRE consolidated revenue reached 14.1 billion euros, with a reduction of 8.7%, mainly due to the depreciation of the main currencies of the countries where MAPFRE operates, and the fall in financial returns.

Premiums reached 12 billion euros, with a decline of 8.4%, due to the effect of currency depreciation and discreet development of premium issuing in Brazil, United States, Turkey, Colombia and Chile. At constant exchange rates, premium variation would be -2.3%.

Revenue from investments reached 1.3 billion euros, below the previous period, due to the recurrent low-interest rate environment in Europe and the fall in interest rates in Brazil and other countries in LATAM, as well as lower financial gains. The absence of gains from the sale of real estate in 2018 is also relevant.

Million euros.

Premiums June 2018

Non-Life premiums fell by 9.6%, while Life premiums receded 4.2%. By Non-Life business type, Automobile is the most important line, with 3.6 billion euros in premiums. General P&C holds second place, with 3 billion euros and Health and Accidents is in third place with 926 million euros in premiums. At a constant exchange rate, the variation in premiums would be -3.4% in Non-Life and +1.8% in Life.

Million euros.

Combined ratio June 2018

The improvement in the combined ratio is based on an excellent loss experience in Spain and MAPFRE RE, improved loss experience in LATAM NORTH and SOUTH, and improved loss experience in the GLOBAL RISKS business unit, which was very affected last year by claims with a high level of intensity. This favorable development limits the effect coming from the storms on the East coast of the United States in the first quarter of the year.

Net result June 2018

The attributable result reached 385.7 million euros, decreasing by -7.1%, primarily as a result of the following events occurring in the first half of 2018:

  1. The fall in net financial income, due mainly to the decrease in interest rates in Brazil and other LATAM countries, as well as the low-interest rate environment in Europe.
  2. The absence of atypical operations with relevant contributions to earnings for the period. It is important to point out that in the Life business from the previous period, non-technical revenue included the cancellation of a provision for contingent payments in the bancassurance channel in Spain totaling 27.2 million euros, net of taxes. Additionally, the sale of real estate on calle Luchana in Madrid contributed a 29.0 million net profit in 2017.
  3. Expenses from the restructuring operations in Brazil and the United States.

Million euros.

Balance sheet

Balance sheet to June 2018

Total assets reached 68.2 billion euros to June 30, 2018 and grew 0.9% compared to the close of the previous year. The most relevant changes are:

  1. The changes in Financial Investments, as well as in the headings for Assets and Liabilities from insurance and reinsurance operations, are a result of the business management process itself. The increase in technical provisions and in reinsurance participation in technical provisions is, in part, in line with the increase in gross reserves from the claims registered from the catastrophic events occurring last September and the corresponding cession to reinsurers.
  2. Changes in equity correspond to the earnings from the period and the agreement about distribution of dividends, as well as to changes in value of investments available for sale and currency conversion differences of financial accounts denominated in currencies other than the euro.
  3. The heading for Assets held for sale primarily include, to June 2018, the valuation of businesses in the United States that have been included in the business restructuring operation for the country, for the amount of 125.9 million euros. To December 2017, this heading contained the valuation of assets corresponding to the sale operation of Union Duero for the amount of 141.7 million euros.

Million euros.

Assets under management

200%

203%

Solvency II

  • High quality capital base: 8.4 billion euros in Tier 1 (93% of eligible own funds)
  • “Fully loaded” Solvency II ratio: ≈184% (excluding impact of transitional measures on technical provisions and equity)

Strategic Plan 2016-2018

Client orientation

Clients have always been the focal point of our efforts each and every day. Our goal in this three-year period is to generate profound insight into our clients, and to transform our processes and offering in order to address their current and future needs, as well as enhancing the client experience in all markets, and with all products.

Excellence in technical and operational management

MAPFRE is aiming to bolster those areas that have traditionally formed the basis of its insurance activities. To achieve this we will optimize each product, improving services to ensure that we are more competitive and deliver on performance and profitability targets.

Digital transformation

The objective is to improve our capacity to interact with clients, with simpler procedures that empower clients to manage their own products. We will optimize tools in order to provide more services, enhance quality and generate greater value for clients.

Culture and human talent

A culture of hard work, productivity and efficiency has always been a hallmark of MAPFRE. We will introduce new policies to nurture talent, leadership and teamwork, and to capitalize on the full potential of our personnel in strategic areas.

Relevant events

MAPFRE, participates in the financial summit, Spain Investors Day

MAPFRE, participates in the financial summit, Spain Investors Day

January 2018

MAPFRE participates in the VIII edition of the international forum, Spain Investors Day. The event was held in Madrid and attended by large, listed Spanish companies, important members of the Spanish Government and international investors.

MAPFRE converts its 1 billion euro syndicated credit line into a sustainable loan

MAPFRE converts its 1 billion euro syndicated credit line into a sustainable loan

February 2018

MAPFRE has converted its 1 billion euro syndicated credit line into a sustainable loan, thereby becoming the first insurance company in the world to execute a transaction of this nature, strengthening its commitment to sustainability and corporate social responsibility.

More information
MAPFRE and Swiss Life to set up a co-investment solution for prime office locations

MAPFRE and Swiss Life to set up a co-investment solution for prime office locations

March 2018

MAPFRE and Swiss Life have agreed to establish a real estate co-investment vehicle that will invest in prime office locations in the major French cities and will be managed by Swiss Life Asset Managers, Real estate France.

More information
Standard & Poor’s raises MAPFRE’s rating outlook from stable to positive

Standard & Poor’s raises MAPFRE’s rating outlook from stable to positive

March 2018

The rating agency Standard & Poor’s has raised MAPFRE’s rating Outlook from stable to positive, as a result of the expectations for improvements in business in Brazil, Spain and MAPFRE RE.

MAPFRE takes a 25% stake in La Financière Responsable

MAPFRE takes a 25% stake in La Financière Responsable

April 2018

MAPFRE and the French asset management boutique, La Financière Responsable (LFR), have presented in Paris their collaboration agreement, with which MAPFRE takes a 25% stake in LFR, as part of its commitment to a policy of responsible investment.

Agreement with Puy du Fou for a theme park project in Toledo

Agreement with Puy du Fou for a theme park project in Toledo

June 2018

MAPFRE has reached an agreement with the French company Puy du Fou to become a shareholder in the project to build a theme park based on the history of Spain, in the province of Toledo.

Agreement to update the strategic alliance with Banco do Brasil

Agreement to update the strategic alliance with Banco do Brasil

June 2018

MAPFRE and Banco Do Brasil have reached full agreement to update their strategic Alliance in the insurance business, which gave rise to BB MAPFRE, incorporated in May 2010, and which over the course of the last eight years has consolidated itself as one of the leading insurance groups in Brasil.

More information

Dividends and Shareholders

MAPFRE continues creating value for its shareholders

On June 14, the final dividend of 0.085 euros gross per share was paid against 2017 results. As such, the total dividend paid against results for the period reached 0.145 euros per share.

Therefore, MAPFRE paid its sharholders 447 million euros against 2017 results, which is an increase in the payout from 57.6% to 63.7%.

Share Performance

MAPFRE – IBEX 35 – Stoxx Insurance

Share Price evolution: January 1, 2018 – June 30, 2018 (base 100)

* Dividend paid in the 12 months prior

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