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1Q 2021 Earnings Release
April 29, 2021

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Results March 2020

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

MAPFRE’s consolidated revenue in the first quarter of 2020 reached 7.3 billion euros, and the attributable result amounted to 127 million euros.

Million euros.

Revenue March 2020

The Group’s consolidated revenue in the first quarter of 2020 reached 7.3 billion euros, with a decrease of 4.5 percent, mainly due to the fall in written premiums and lower financial income.
Million euros.

Premiums March 2020

Premiums from direct insurance and accepted reinsurance reached 6.1 billion euros, with a decrease of 4.7 percent, due in part to the effects on new business of the confinement of the population from COVID-19, and to the strong depreciation of the main currencies in LATAM countries and in Turkey. At constant exchange rates, premiums would have only fallen 1.5 percent.

Non-Life insurance premiums went down 2 percent, although at constant exchange rates they would have grown 0.6 percent.

Life premiums fell 14.3 percent (-9.1 percent at constant exchange rates), with a slight decline in Life Protection, primarily from the currency effect in Brazil in the first quarter, and a sharper fall in Life Savings, primarily from lower issuing in Spain and Malta, in a complicated economic environment for the sale of these products.

By Non-Life business type, Auto is the most important line, with over 1.5 billion euros in premiums. General P&C holds second place, also with over 1.5 billion euros. Health and Accident is in third place with 872 million euros in premiums.

Million euros.

Combined ratio March 2020

The Group’s combined ratio stood at 100 percent at the close of March, due to the impact of the earthquake that occurred in Puerto Rico and to the heavy storms in Spain at the beginning of the year. The combined ratio of the insurance units stood at 97.2 percent.

Net result March 2020

The attributable result to March 2020 reached 127 million euros, a fall of 32.6 percent, as it was negatively affected by the earthquake in Puerto Rico and adverse weather in Spain at the beginning of the year, with a total attributable impact of 67.5 million euros. At constant exchange rates, this result would have stood at 133 million euros.
Million euros.

Balance sheet

Balance sheet to March 2020

Total assets reached 69.2 billion euros at March 31, 2020 and fell 4.6 percent compared to the close of the previous year. These changes include the decrease in financial investments and technical provisions from the increase in risk premiums and the deterioration of the stock markets, as well as the relevant depreciation in the quarter of the main currencies in LATAM and the Turkish lira.

The decrease in shareholders’ equity also reflects the contraction of the financial markets and the depreciations of the abovementioned currencies.

Million euros.

Assets under management

Solvency II

The Solvency II ratio for MAPFRE Group stood at 187 percent at December 31, 2019, compared to 190 percent at the close of December 2018. The ratio maintained great solidity and stability, backed by high levels of diversification and strict investment and ALM policies.

  • High quality capital base: 87 percent of eligible own funds are Tier 1.
  • “Fully loaded” Solvency II ratio: 172 percent (excluding impact of transitional measures on technical provisions and equity).
190%
187%
Billion euros.

Strategic Plan 2019-2021

Based on the transformation we need as a company, we are articulating our strategy around three pillars: client orientation, excellence in technical and operational management and culture and talent. The transformation will be present in everything that we do, it will be transversal and it will act as an authentic accelerator across the entire organization.

Client orientation

We are 100-percent client-oriented, and place the client at the center of everything we do so that we can continue to be your trusted insurance company. With the client orientation pillar, we are working to understand your needs and offer you value propositions that are innovative and tailored to each client profile.

Excellence in technical and operational management

We consider excellence in technical and operational management to be a fundamental goal, and key to achieving adequate profitability in the market.

Culture and talent

We believe that it is essential to be able to count on the people and culture of MAPFRE as the bedrock of our whole business. Our people’s effort and commitment drives transformation and helps us to anticipate change by leveraging progress in the digital age. Equal opportunities, diversity and labor inclusion are the transversal principles at the center of our strategy.

Relevant events

MAPFRE is one of the most socially committed companies acting against COVID-19

May 2020

MAPFRE is among the 20 companies that are showing the greatest levels of commitment and social responsibility in light of the situation the country is experiencing as a consequence of the pandemic deriving from the coronavirus and leads the insurance sector ranking, according to the extraordinary ranking prepared by Merco.

MAPFRE duplicates savings in insurance products through its loyalty plan

May 2020

To July 31, 2020, MAPFRE will automatically duplicate the clovers that its members obtain during this promotion. These clovers can be used by clients to get greater discounts in the renewal of their insurance products.

MAPFRE launches SIALP SELECT 30

May 2020

MAPFRE strengthens its offer of Life-Savings insurance products with the launch of SIALP Select 30, a new single premium unit linked, tied to the Eurostoxx Select Dividend 30. This product is an interesting alternative for individuals looking for returns and security, as 94.5% of capital is guaranteed.

MAPFRE launchesGarantía Cupón Activo

May 2020

MAPFRE strengthens its offer of Life-Savings insurance products with the launch of Garantía Cupón Activo, a new single premium unit linked, tied to the Eurostoxx Select Dividend 30 and with a 90% capital guarantee at maturity.

The MAPFRE solidarity fund set up to fight COVID-19 reaches 50 million target in just two weeks

May 2020

The MAPFRE Compromiso Sanitario fund has generated great interest, attracting 2,150 participants. The success of the fund will allow the Madrid health authority to receive the 50 million euros to use in battling the pandemic.

Acuerdo con Puy du Fou para el proyecto de un parque temático en Toledo

Fitch maintains MAPFRE’s insurer financial strength rating

April 2020

The Fitch agency has decided to maintain MAPFRE’s financial strength credit rating at A+, with a stable outlook, following its assessment of the potential impact of the coronavirus pandemic on the company

MAPFRE mobilizes over 200 million euros for the fight against coronavirus

April 2020

MAPFRE continues to mobilize resources to protect the health of its employees, collaborators and clients in all countries where it operates; to assist economic recovery and job retention, especially for the self-employed, SMEs and its providers; and to provide resources, especially healthcare equipment, to the wider society to help overcome the effects of this pandemic.

MAPFRE contributes to the industry fund aimed at protecting health care professionals against COVID-19

April 2020

MAPFRE has allocated 5.7 million euros to the industry fund set up by insurance companies to protect health care personnel in the fight against COVID-19 in Spain.

Acuerdo con Puy du Fou para el proyecto de un parque temático en Toledo

MAPFRE adapts its benefits to the COVID-19 confinement for the clients of its loyalty pan

April 2020

MAPFRE teCuidamos temporarily expands its tele-pharmacy service, contacts older clients to check on their situation and offer them advice in health matters and in repairing technological devices, and delivers more than 100,000 movie passes, 20,000 digital photo packs and 10,000 special offers for members and their families.

Dividend: 0.145 euros per share (gross) in cash

March 2020

The MAPFRE Annual General Meeting approved the company’s financial accounts for 2019, a year in which the Group produced net earnings of 609 million euros, 15.2 percent higher than the previous year. Dividends charged to the 2019 results were also approved, totaling 0.145 euros per share (gross). As a result, MAPFRE will pay its shareholders 447 million euros in cash against the 2019 results.

Meetings with shareholders

February 2020

In February, MAPFRE held two meetings with its shareholders in Madrid, in order to discuss the Group’s business.

Acuerdo con Puy du Fou para el proyecto de un parque temático en Toledo

The new Santander | MAPFRE Seguros company commences operations in Spain

February 2020

After receiving all the necessary authorizations, the joint venture between MAPFRE and Banco Santander for the marketing of automobile, commercial multirisk, SME multirisk and third-party liability insurance is taking its first steps under the name Santander MAPFRE Seguros y Reaseguros.

SEAT and MAPFRE join forces for safe mobility

February 2020

SEAT and MAPFRE have signed a collaboration agreement in Spain for the development of new mobility under safety and accident prevention parameters. With this partnership, both companies will implement initiatives to minimize accident rates and promote ways of collaborating on safety, the use of new forms of mobility and the creation of new solutions linked to the ‘connected car’.

MAPFRE acquires 51 percent of the Dominican health insurance company, ARS Palic

February 2020

MAPFRE has reached an agreement with the León BHD Financial Center with the Spanish company acquiring 51 percent of the health insurance company, ARS Palic. With this partnership, MAPFRE has consolidated its position as one of the top insurers in the Dominican Republic, with more than 350 million euros in annual premiums.

Acuerdo con Puy du Fou para el proyecto de un parque temático en Toledo

MAPFRE launches Valor Activo III, a unit linked tied to a socially responsible BBVA bond

February 2020

MAPFRE strengthens its Life-Savings insurance product offer with the launch of Valor Activo III, a new single premium unit linked tied to the performance of the Eurostoxx Select Dividend 30 Index (S3DE Index) and linked to a socially responsible bond from BBVA, the funds of which will go to social projects.

Acuerdo para actualizar la alianza estratégica con Banco do Brasil

Spain Investors Day

January 2020

MAPFRE held meetings with institutional investors at the Spain Investors Day event. In these meetings, which included the participation of Fernando Mata, the Group CFO and Member of the Board, Eduardo Pérez de Lema, the CEO of MAPFRE RE, and Natalia Núñez, the company’s Head of Investor Relations and Capital Markets, investors were able to learn first-hand about MAPFRE’s key figures.

Dividends and Shareholders

MAPFRE continues creating value for its shareholders

On June 25, the final dividend against 2019 results, approved by the Annual General Meeting, will be paid. Adjusted for treasury stock, it will reach 0.086 euros gross per share.

Share Performance

MAPFRE – IBEX 35 – Stoxx Insurance

Share price evolution: December 31, 2019 – March 31, 2020