3M 2019 Results Analyst & Investor presentation April 30 th , - PowerPoint PPT Presentation

3M 2019 Results Analyst & Investor presentation April 30 th , 2019

Key Figures > 3M 2019 Δ at constant 3M 2019 Δ exchange rates Revenue 7,675 5.8% 6.4% Total written and accepted premiums 6,399 3.3% 3.9% - Non-Life 4,999 0.7% 1.0% - Life 1,399 13.7% 15.3% Non-Life Combined Ratio 95.9% -0.6 p.p Non-Life Loss Ratio 67.3% -1.0 p.p Non-Life Expense Ratio 28.6% 0.3 p.p Net result 188.1 0.6% Balance sheet (1) Assets under management 61,386 5.0% Shareholders' equity 8,273 3.5% ex goodwill writedowns ROE (1) 6.3% -0.04 p.p 8.3% 12M 2018 Δ Solvency ratio (2) 189.5% -10.7 p.p (1) Variation calculated against data at December 31 st , 2018 (2) Variation calculated against data at December 31 st , 2017 2 Million euros

Key figures > by business unit Premiums – Breakdown by business unit Attributable result Premiums Combined ratio ROE Δ % (3) 3M 2019 Δ mn Δ % 3M 2019 Δ % 3M 2019 Δ % 3M 2019 ASISTENCIA IBERIA 119.6 1.7 1.5% 2,525 7.8% 92.6% 0.5 p.p 11.8% -0.6 p.p IBERIA 3.3% LATAM 48.2 10.0 26.3% 1,769 -0.3% 95.6% -2.1 p.p 35.3% BRAZIL 24.4 9.9 68.4% 967 -4.6% 95.4% -2.9 p.p 6.2% 0.9 p.p MAPFRE RE INSURANCE LATAM NORTH 13.3 3.4 34.7% 404 10.6% 96.2% -0.4 p.p 11.5% 0.1 p.p 21.6% LATAM SOUTH 10.5 (3.3) -24.0% 398 0.6% 95.5% -1.5 p.p 10.2% -0.3 p.p INTERNATIONAL 11.4 11.3 -- 1,078 -2.3% 102.8% -2.9 p.p Reinsurance 18.1% NORTH AMERICA 13.4 17.6 -- 551 -2.0% 99.9% -6.3 p.p 4.2% 1.4 p.p Global Risks 3.5% EURASIA (2.0) (6.3) -146.8% 527 -2.6% 108.5% 3.6 p.p 0.9% -1.0 p.p MAPFRE RE (1) 51.5 (18.7) -26.7% 1,541 10.6% 92.2% 1.0 p.p 9.4% -1.3 p.p Reinsurance 54.6 (8.1) -12.9% 1,294 14.9% 90.4% -0.7 p.p -- -- INTERNATIONAL Global Risks (3.2) (10.7) --- 247 -7.5% 113.9% 21.8 p.p -- -- 15.1% LATAM ASISTENCIA (4.0) (1.2) -44.5% 233 2.6% 104.9% 2.7 p.p -4.8% -0.5 p.p OTHER (2) 24.7% (38.6) (1.9) -5.2% (747) -16.4% -- -- -- -- NORTH AMERICA 7.7% TOTAL 188.1 1.1 0.6% 6,399 3.3% 95.9% -0.6 p.p 6.3% -0.04 p.p EURASIA 7.4% BRAZIL 13.5% LATAM NORTH 5.7% LATAM SOUTH 5.6% (1) MAPFRE RE data at 3M 2018 has been restated on a like for like basis, including information for GLOBAL RISKS (2) “Other” includes Corporate Areas and consolidation adjustments (3) Variation calculated against data at 12M 2018 3 Million euros

Adjusted attributable result 3M 2018 3M 2019 Δ (mn) Δ (%) Attributable result 187.0 188.1 1.1 0.6% Weather related and NatCat claims (1) (10.9) 0.0 10.9 Financial gains & losses (2) 26.1 18.2 (7.9) Attributable result (adjusted) 171.8 169.9 (1.9) -1.1% (1) US winter weather related events (2) Actively managed portfolios and real estate (across MAPFRE Group), net of writedowns 4 Million euros

Capital structure & credit metrics Capital structure Leverage (%) 24.2% 22.5% Subordinated Bank debt financing 9% 7% 12.31.2018 03.31.2019 Senior debt 8% Equity Interest coverage (x) € 12.6 76% billion 20.4 18.4 › Temporary increase in leverage to 24% due to: › BMN acquisition (total amount: ≈162 mn € ) › Transitory funding of subsidiaries 12.31.2018 03.31.2019 5

Shareholders’ equity Change in shareholders ’ equity Currency conversion differences % Δ currency 03.31.2019 Δ YTD YTD Balance at 12/31 previous year 7,994 Total -647 91 - Result for the period 188 of which: Dividends -262 US dollar 489 47 2.1% Net unrealized capital gains of AFS portfolio* 298 Brazilian real -619 11 1.1% Turkish lira -300 -5 -3.3% Currency conversion differences 91 Mexican peso -112 9 3.3% Others -36 Balance at period end 8,273 *Net of shadow accounting adjustments 6 Million euros

Investment portfolio & Assets under Management Investment portfolio – Breakdown by asset class Assets under Management 51.8 4.8 12.31.2018 03.31.2019 % Δ Other investments (9.2%) Cash (5.7%) 3.0 Assets under Management 58.5 61.4 5.0% 1.5 Mutual funds (2.9%) 2.5 of which: Equity (4.8%) 2.4 Investment portfolio 49.3 51.8 5.1% Real Estate (4.6%) Pension funds 4.9 5.1 4.3% 9.2 Corporate fixed income (17.8%) Mutual funds & others 4.3 4.5 4.0% Government fixed income (55.1%) Spain 16.5 Italy 2.8 28.5 Rest of Europe 2.5 United States 1.5 Brazil 2.8 Rest of LATAM 1.9 Other 0.5 7 Billion euros

Investment portfolio & Financial gains & losses Actively managed portfolios 1 - Non-Life ( € 7.0 bn) Actively managed portfolios 1 - Life ( € 6.4 bn) 6.8 7.1 6.6 6.7 Duration (%) Duration (%) 6.4 6.7 6.8 7.1 4.10 3.93 3.91 3.72 2.59 2.40 2.11 1.99 1.42 1.05 1.01 1.23 0.84 1.15 0.74 1.09 12.31.2017 03.31.2018 12.31.2018 03.31.2019 12.31.2017 03.31.2018 12.31.2018 03.31.2019 Accounting yield (%) Market reinvestment yield (%) Accounting yield (%) Market reinvestment yield (%) Financial gains & losses (mn € ) 2 Non-Life Life Total 3M 2018 3M 2019 3M 2018 3M 2019 3M 2018 3M 2019 1) Fixed income portfolios in the Euro area (IBERIA & MAPFRE RE) 2) Includes only actively managed financial investment portfolios and real IBERIA 20.9 15.8 -0.2 3.7 20.7 19.5 estate in the Euro area, net of writedowns, before taxes and non- controlling interests MAPFRE RE* 11.4 3.3 2.7 0.3 14.1 3.6 *MAPFRE RE 2018 figures include financial gains and losses for GLOBAL RISKS TOTAL 32.3 19.1 2.5 4.0 34.8 23.0 8

IBERIA Key figures – by line of business Key highlights › Excellent premium growth Premiums Attributable result Combined ratio › Motor: higher premium growth 3M 2019 % Δ 3M 2019 % Δ 3M 2019 % Δ (+2.6%) than insured units (+2.4%), Total 2,525.4 7.8% 119.6 1.5% - - with positive developments in Spain, Life 651.6 21.4% 25.4 60.8% - - both in retail (+2.4%) as well as in Non-Life 1,873.9 3.8% 84.4 -7.2% 92.6% 0.5 p.p fleets (+6.7%) of which: › General P&C: growth driven by Motor 548.0 2.6% 46.9 -11.2% 90.6% 0.3 p.p Homeowners (+4.7%) and General P&C 645.8 4.4% 30.4 -10.5% 94.1% 1.2 p.p Condominiums (+8.1%), helping to Health & Accidents 608.2 4.7% -1.0 -114.3% 103.1% 6.2 p.p offset the fall in Commercial lines Other Business Activities* - - 9.8 -12.0% - - › Life: successful sales in bancassurance *Includes non-insurance activities (i.e. asset management and funeral services), as well as consolidation adjustments and agent channels, as well as a large Key figures – by entities policy in 1Q ( € 45 mn) › Excellent combined ratio performance in Premiums Attributable result ROE Motor in a competitive market % Δ (1) 3M 2019 % Δ 3M 2019 % Δ 3M 2019 › Attributable result in Health & Accidents MAPFRE ESPAÑA 1,860.1 3.9% 82.8 -0.4% 12.9% -0.7 p.p affected by higher hospital costs (- € 1 mn MAPFRE VIDA 665.4 20.4% 36.9 5.4% 10.4% -0.3 p.p vs. € 6.7mn in 1Q 18) Total 2,525.4 7.8% 119.6 1.5% 11.8% -0.6 p.p › Improved profitability in Portugal with a of which: Spain 2,491.9 7.9% 118.6 0.5% 11.8% -0.5 p.p 5.5 p.p. reduction in the combined ratio Portugal 33.5 4.8% 1.0 -- 15.4% 0.1 p.p Variation calculated against data at December 31 st , 2018 9 Million euros (1)

BRAZIL Key figures – by entities Key highlights › Fall in average exchange rates for the Premiums Attributable result Combined ratio ROE % Δ (1) 3M 2019 % Δ 3M 2019 % Δ 3M 2019 % Δ 3M 2019 Brazilian real (-6.7%) Total 966.8 -4.6% 24.4 68.4% 95.4% -2.9 p.p 6.2% 0.9 p.p › Local currency growth (+2.3%) thanks to BB MAPFRE* 435.1 7.7% 16.1 -21.1% 79.5% 24.5 p.p -- -- higher issuance in BB MAPFRE, especially MAPFRE SEGUROS 531.7 -12.7% 8.5 192.2% 102.2% -9.3 p.p -- -- in the Life Protection segment, offset by HOLDING & OTHER -- -- -0.2 -- -- -- -- -- weak issuance in Agro › Lower premiums in MAPFRE SEGUROS as a * BB MAPFRE: Life and Agro business in Banco do Brasil channel result of greater underwriting control in Key figures – by line of business Motor and General P&C, including tariff increases › Increase in the attributable result (+ € 17.7 Premiums Attributable result Combined ratio 3M 2019 % Δ 3M 2019 % Δ 3M 2019 % Δ mn) at MAPFRE SEGUROS, offsetting the Total 966.8 -4.6% 24.4 68.4% -- -- fall at BB MAPFRE, as a result of weather Life 364.0 12.5% 13.1 48.5% - - related events affecting Agro insurance Non-Life 602.8 -12.6% 11.4 99.2% 95.4% -2.9 p.p › Strong improvement in the Motor result, of which: thanks to claims management and Motor 234.4 -20.7% 0.5 107.6% 104.4% -9.9 p.p underwriting measures General P&C 367.7 -6.5% 11.0 2.1% 85.7% 6.3 p.p › Higher financial income due to realized gains during the quarter 10 Million euros Variation calculated against data at December 31 st , 2018 (1)