Mapfre S A : (07.2020) Results presentation 2Q 2020

Madrid, July 24, 2020

SPANISH SECURITIES AND EXCHANGE COMMISSION

Please find attached the documentation to be presented to investors in upcoming meetings.

Ángel L. Dávila Bermejo General Counsel

6M 2020 Results

Analyst & Investor presentation

July 24th, 2020

Key highlights

Insurance units performing well >

• Benefitting from lower frequency as well as restructuring and profitability initiatives

COVID-19 P&L impacts >

• Largest impact has been on the top-line due to confinement measures, lower economic activity, currency movements and an unfavorable environment for Life Savings products
• Direct impacts at insurance units, mainly in Burial and Health segments, have been mitigated by lower frequency across all markets, especially in Motor
• COVID-19related claims at MAPFRE RE (-€56.9 mn net impact)
• Travel assistance business, but with lower claims activity in the second quarter
• Updating of IBNR reserves

Conservative asset valuation approach >

• Extensive review of equity, fixed income and real estate portfolios, intangibles and accounts receivable
• Investments in undeveloped land valuations adapted accordingly (-€20.5 mn net impact)

NatCat events >

• Earthquakes in Puerto Rico and storm Gloria in the Northeast of Spain in H1 2020 (-€77.3 mn net impact)

Resilient capital position >

• Solvency ratio within target range, with a high degree of financial flexibility

2

Key Figures > 6M 2020

					at constant
	6M 2020				exchange
					rates
Revenue	13,277	-11.8%		-7.6%
Total written and accepted premiums	10,983	-12.3%		-7.7%
- Non-Life	8,763	-9.7%		-5.7%
- Life	2,220	-21.4%		-14.6%
Non-Life Combined Ratio - MAPFRE S.A.	96.7%	0.8 p.p
Non-Life Loss Ratio	67.6%	0.1 p.p
Non-Life Expense Ratio	29.1%	0.7 p.p
Non-Life Combined Ratio - Insurance units	93.8%	-2.1 p.p
					at constant exchange
					rates
Attributable result	270.7	-27.7%		292.6		-21.9%
					excluding goodwill
					writedowns (3)
ROE (1)	5.9%	-1.3 p.p		6.6%		-1.3 p.p
Balance sheet (1)
Assets under management	60,890	-4.3%
Shareholders' equity	8,342	-5.8%
	3M 2020
Solvency ratio (1)	177.2%	-9.6 p.p
	12M 2019
Market Consistent Embedded Value (MCEV) (2)	7,854.5	20.5%

1. Variation calculated against data at December 31st, 2019
2. Variation calculated against data at December 31st, 2018
3. Excluding 2019 goodwill writedowns

Million euros

3

Adjusted attributable result

	6M 2019	6M 2020	(mn)	(%)
Attributable result	374.5	270.7	(103.8)	-27.7%
Weather related and NatCat claims		(77.3)	(77.3)
Direct insurance operations (1)		(36.0)	(36.0)
MAPFRE RE (2)		(41.3)	(41.3)
COVID related claims (MAPFRE RE)		(56.9)	(56.9)
Attributable result excluding weather related, NatCat and COVID claims	374.5	404.8	30.3	8.1%
Reorganization of operations (3)	4.5	(15.0)	(19.5)
Financial Gains & Losses	37.5	13.6	(23.9)
Real estate (4)	0.9	(6.5)	(7.4)
Financial investments (5)	36.6	20.1	(16.5)
Attributable result (adjusted)	332.5	406.3	73.8	22.2%

1. Puerto Rican earthquakes (-€25.8 mn) and severe rain and storms in Spain (-€10.2 mn) at insurance units
2. Puerto Rican earthquakes (-€35.4 mn) and severe rain and storms in Spain (-€5.9 mn) at MAPFRE RE
3. Organizational structure re-alignment(-€14.7 mn) and sale of related financial assets (€19.2 mn) at MAPFRE USA in 2019; provision for restructuring (-€15 mn) in 2020
4. Sale of real estate in the Philippines (€0.9 mn) in 2019; mainly sale of real estate at MAPFRE USA (€14 mn) as well as real estate provisions in Spain (-€20.5 mn) in 2020
5. Financial gains & losses, net of writedowns, in actively managed financial investment portfolios in the euro area
   (IBERIA & MAPFRE RE)

All impacts after tax and minorities

Million euros

4

Key figures > by business unit

Premiums - Breakdown by business unit

							ASISTENCIA
							2.7%
											IBERIA
MAPFRE RE									32.2%
23.6%			17.2%
Reinsurance
Global Risks			6.4%
									LATAM
	INTERNATIONAL				26.2%
	15.3%
				BRAZIL		13.1%
NORTH AMERICA		9.0%
	LATAM NORTH		7.2%
EURASIA			6.3%
		LATAM SOUTH		5.9%

Million euros

	Attributable result	Premiums	Combined ratio	ROE (2)
	6M 2020	mn	%	6M 2020	%	6M 2020	p.p.	6M 2020	p.p.
IBERIA	221.2	(10.5)	-4.6%	3,978	-8.3%	93.8%	-0.0 p.p	11.8%	-0.8 p.p
of which:
MAPFRE ESPAÑA*	132.9	(10.6)	-7.4%	3,067	1.5%	94.5%	0.0 p.p	10.2%	-1.0 p.p
MAPFRE VIDA	88.3	0.0	0.0%	911	-30.8%	--	--	14.3%	-0.3 p.p
LATAM	131.2	27.8	26.8%	3,225	-21.6%	89.6%	-3.2 p.p	12.7%	2.1 p.p
BRAZIL	60.3	11.4	23.4%	1,612	-21.6%	88.8%	-2.8 p.p	12.0%	2.4 p.p
LATAM NORTH	43.6	14.7	50.8%	887	-29.2%	87.8%	-5.3 p.p	17.8%	2.6 p.p
LATAM SOUTH	27.3	1.6	6.4%	727	-10.0%	93.9%	-1.8 p.p	9.8%	-0.0 p.p
INTERNATIONAL	76.2	31.2	69.3%	1,892	-12.7%	98.4%	-4.3 p.p	6.0%	1.3 p.p
NORTH AMERICA	53.2	7.7	16.8%	1,116	-8.2%	99.1%	-0.9 p.p	6.3%	0.2 p.p
EURASIA	23.0	23.6	--	776	-18.4%	97.1%	-10.8 p.p	5.6%	3.4 p.p
TOTAL INSURANCE	428.6	48.4	12.7%	9,095	-14.4%	93.8%	-2.1 p.p	--	--
Reinsurance	(47.7)	(130.8)	-157.4%	2,123	-5.1%	106.5%	13.0 p.p	--	--
Global Risks	(4.0)	(5.8)	--	787	38.8%	109.1%	2.2 p.p	--	--
ASISTENCIA	(13.3)	(7.7)	-138.8%	338	-25.3%	100.3%	-2.9 p.p	--	--
OTHER(1)	(93.0)	(8.0)	-9.4%	-1,360	-0.9%	--	--	--	--
TOTAL	270.7	(103.8)	-27.7%	10,983	-12.3%	96.7%	0.8 p.p	5.9%	-1.3 p.p

1. "Other" includes Corporate Areas and consolidation adjustments
2. Variation calculated against data at 12M 2019

* MAPFRE ESPAÑA includes the business in Portugal

5

Shareholders' equity

Change in shareholders' equity (€ mn)

Balance at 12/31 previous year	8,854
Result for the period	271
Dividends	-262
Net unrealized capital gains of AFS portfolio*	-86
Currency conversion differences	-424
Others	-11
Balance at period end	8,342

*Net of shadow accounting adjustments

Net unrealized capital gains - AFS portfolio (€ bn)

	12.31.2019	06.30.2020
Net unrealized gains	1.01	0.92
Unrealized gains	3.57	3.36
Shadow accounting adjustments	-2.56	-2.44

Currency conversion differences (€ mn)

				Sensitivity to 1
	06.30.2020		% currency	pp move in
				currency
Total	-1,664**	-424	-
of which:
US dollar	487	-3	-0.2%	19
Brazilian real	-917	-269	-26.1%	10
Turkish lira	-329	-20	-13.3%	1
Mexican peso	-158	-54	-17.9%	3

**Currency conversion differences include -€539 mn of adjustments in Venezuelan and Argentine currencies (hyperinflationary economies)

AFS portfolio - IBERIA - breakdown by portfolio type (€ bn)

		Actively managed
	Immunized	Free	Conditioned	Total
Net unrealized gains	-0.04	0.59	0.21	0.76
Unrealized gains	1.75	0.59	0.92	3.26
Shadow accounting adjustments	-1.79	0.00	-0.71	-2.50
Market Value	13.57	6.92	6.34	26.83

6

Capital structure & credit metrics

Capital structure

		Subordinated
		debt
Bank financing		9%
7%

Senior debt
8%
€ 12.6	Equity
	76%
	billion

Leverage (%) (1)

Solvency II position (€ mn)

	12.31.2019	03.31.2020
Eligible Own Funds (EOF)	8,976	8,197
Solvency Capital Requirement (SCR)	4,805	4,625
EOF-SCR	4,171	3,572
Solvency II ratio	186.8%	177.2%
Fully loaded *	172.3%	163.8%

* Excluding impacts of transitional measures for technical provisions and equity

Pro-forma impacts from regulatory developments**

22.7%

24.3%

Matching adjustment - diversification	12.0%
Longevity internal model	9.9%
Pro-forma combined impacts	17.1%

**Calculations at December 31, 2019. Regulatory developments currently in progress:

12.31.2019 06.30.2020

1. Total Debt / (Total Equity + Total Debt)

• Credit risk diversification benefit for matching adjustment portfolios
• Spanish Life business internal model for longevity risk: approved by local regulator for MAPFRE VIDA and in process for MAPFRE Group calculations

7

Investment portfolio & Assets under management

Investment portfolio - Breakdown by asset class

						51.3
				Other investments (4%)	2.0
				2.3
				Unit Linked (4.5%)
					2.7
				Cash (5.2%)
					1.6
				Mutual funds (3.1%)		2.5
				Equity (4.8%)		2.4
				Real Estate (4.7%)		9.5
				Corporate fixed income
(18.5%)
				Government fixed income
(55.3%)
Spain	17.7
Italy	2.9
Rest of Europe	1.8	28.4
United States	1.6
Brazil	2.1
Rest of LATAM	1.7
Other	0.6

Assets under management

	12.31.2019	06.30.2020	%
Assets under management	63.6	60.9	-4.3%
of which:
Investment portfolio	53.5	51.3	-4.1%
Pension funds	5.5	5.3	-2.7%
Mutual funds & other	4.6	4.2	-9.2%

Financial gains & losses (€ mn)1

		Non-Life	Life		Total
		6M 2019	6M 2020	6M 2019	6M 2020	6M 2019	6M 2020
IBERIA	24.6	17.4	10.5	2.0	35.1	19.4
MAPFRE RE	13.2	8.1	1.6	1.5	14.8	9.6
TOTAL	37.8	25.5	12.1	3.5	49.9	28.9

1. Includes only actively managed financial investment portfolios and real estate in the Euro area, net of writedowns, before taxes and non-controlling interests

Billion euros

8

Fixed income portfolios

Euro area - actively managed (IBERIA & MAPFRE RE)

		Market value	Accounting Yield	Market yield	Modified
		(€bn)	(%)	(%)	duration (%)
NON-LIFE	12.31.2019	7.27	1.95	0.78	8.25
06.30.2020	7.15	1.78	0.62	8.22
LIFE	12.31.2019	6.82	3.53	0.33	6.89
06.30.2020	6.56	3.56	0.34	6.77

Other main regions & units

		Market value	Accounting Yield	Modified duration
		(€bn)	(%)	(%)
BRAZIL - MAPFRE	12.31.2019	1.99	5.25	1.24
SEGUROS	06.30.2020	1.23	3.18	1.55
LATAM NORTH	12.31.2019	0.95	6.44	2.96
06.30.2020	0.81	6.42	3.20
LATAM SOUTH	12.31.2019	1.89	7.09	7.06
06.30.2020	1.74	6.63	6.77
NORTH AMERICA	12.31.2019	2.03	2.88	5.06
06.30.2020	2.13	2.76	5.15

9

Closing remarks

Insurance units (€428.6 mn net result, +12.7%) > outstanding performance with combined ratio of 93.8%, despite impact of Puerto Rico earthquakes on insurance unit

• IBERIA (€221 mn, -4.6%) > remarkable growth in several Non-Life segments with strong profitability trends even with a prudent balance sheet approach
• LATAM (€131 mn, +26.8%) > outstanding performance in Brazil, Mexico, Panama and Colombia, despite currency headwinds, but top-line affected by lower business activity
• INTERNATIONAL (€76 mn, +69.3%) > improving results in USA, Turkey, and Italy

MAPFRE RE > manageable COVID-19 exposures, supported by prudent approach and financial strength

Defensive business positioning > top priority right now is protecting client portfolio, cost contention and streamlining of business units

Resilient financial position > strong capital base, cash generation & remittances, financial flexibility and liquidity

Proven commitment to shareholders > the Board of Directors will continue to monitor the current situation and will assess future dividends during the fourth quarter of the year

10

Terminology

Revenue	Top line figure which includes premiums, financial income, and revenue from non-insurance entities and other revenue
Combined ratio - Non-Life	Expense ratio + Loss ratio
Expense ratio - Non-Life	(Operating expenses, net of reinsurance - other technical revenue + other technical expenses) / Net premiums earned
Loss ratio - Non-Life	(Net claims incurred + variation in other technical reserves + profit sharing and returned premiums) / Net premiums earned
Result of Non-Life business	Includes technical result, financial result and other non-technical result of the Non-Life business
Result of Life business	Includes technical result, financial result and other non-technical result of the Life business
Corporate Areas and Consolidation	Includes expenses from Corporate Areas, consolidation adjustments, as well the result attributable to MAPFRE RE and MAPFRE INTERNACIONAL's non-controlling
Adjustments	interests and other concepts
Other business activities	Includes the Group's non-insurance activities undertaken by the insurance subsidiaries, as well as by other subsidiaries, including activities of the holding companies
of MAPFRE S.A. and MAPFRE INTERNACIONAL
Solvency II ratio	Eligible Own Funds (EOF) / Solvency Capital Requirement (SCR)
ROE (Return on Equity)	(Attributable result for the last twelve months) / (Arithmetic mean of equity attributable to the controlling company at the beginning and closing of the period
(twelve months))
Other investments	Includes interest rate swaps, investments in associates, accepted reinsurance deposits and others

Alternative Performance Measures (APM) used in this report correspond to those financial measures that are not defined or detailed within the framework of the applicable financial information. Their definition and calculation can be consulted at the following link:

https://www.mapfre.com/corporate/institutional-investors/financial-information/

Disclaimer

This document is purely informative. Its content does not constitute, nor can it be interpreted as, an offer or an invitation to sell, exchange or buy, and it is not binding on the issuer in any way. The information about the plans of the Company, its development, its results and its dividends represents a simple forecast whose formulation does not represent a guarantee with respect to the future performance of the Company or the achievement of its targets or estimated results. The recipients of this information must be aware that the preparation of these forecasts is based on assumptions and estimates, which are subject to a high degree of uncertainty, and that, due to multiple factors, future results may differ materially from expected results. Among such factors, the following are worth highlighting: the development of the insurance market and the general economic situation of those countries where the Group operates; circumstances which may affect the competitiveness of insurance products and services; changes in the basis of calculation of mortality and morbidity tables which may affect the insurance activities of the Life and Health segments; frequency and severity of claims covered; effectiveness of the Groups reinsurance policies and fluctuations in the cost and availability of covers offered by third party reinsurers; changes in the legal environment; adverse legal actions; changes in monetary policy; variations in interest rates and exchange rates; fluctuations in liquidity and the value and profitability of assets which make up the investment portfolio; restrictions in the access to third party financing.

MAPFRE S.A. does not undertake to update or revise periodically the content of this document.

Certain numerical figures included in the Investor Presentation have been rounded. Therefore, discrepancies in tables between totals and the sums of the amounts listed may occur due to such rounding.