The Mapfre Group held its annual general meeting for its 2,450,000 shareholders in Madrid last Friday.
Although the hall of the Palacio de Congresos y Esposiciones in Madrid was rather full, they were by no means all shareholders. Other shareholders followed proceedings through a live feed on the Internet.
Mapfre in figures
● 15th largest reinsurance company in Net Ppremiums and the 13th largest in Gross
● Among the top 20 in US automobile insurance sector
● Leader in the Spanish market
● Among the top 10 in Europe
● Top non-life insurer in Latin America
● Leading multinational insurance company in Latin America
●Third largest assistance company in the world
● Present in 49 countries
● 38,000 employees
● 5,524 offices
● 79,289 intermediaries
Mapfre's results
2013 2014 %
Consolidated revenue 25,889 26,366 +1.8
Premiums 21,836 22,401 +2.6
Attributable profit 791 845 +6.9
(million euros)
Business units
Insurance business
● Premiums €18,893 million
● Net profit €797 million
Reinsurance
● Premiums €3,343 million
● Net profit €141.5 million
Global Risks
● Premiums €1,049 million
● Net profit €44 million
Assistance
● Premiums €1,137 million
● Net profit €21.1 million
Business lines
Automobiles
● 13.2 million insured
Home
● 5 million insured
Health
● Nearly 2 million insured
Life and Investment
● 21 million policies
● €40.82 billion in managed assets
Companies
● Nearly two million companies insured
Global risks
● 3,000 companies insured
Reinsurance
● 1,600 ceding companies in 105 countries
Assistance
● 90 million insured
● 200 million beneficiaries
Premiums by geography
Iberia 31.1%
Brazil 23.2%
Mapfre Re 14.0%
Latam South 12.0%
North America 8.8%
Europe and Middle East 5.4%
Latam North 5.1%
Asia and Pacific 0.4%
Addressing the shareholders and the selected media at Mapfre's HQ at Majadahonda, Mapfre Chairman and CEO Antonio Huertas first gave an extensive overview of Mapfre's activities all over the world, describing each region and outlining strategies.
Strategies
Mapfre Iberia
● Increase of market share in automobiles to 20.6%
● Life: Mapfre has become the exclusive bancassurance provider for Bankia
● Investment: Mutual funds +16.7%; Pension funds +7.8%
● Leader of online insurance sales (Verti) in Spain with premiums +47%
Mapfre Brazil
● 54% of Mapfre's insurance business in Latin America
● New business line: Corporate health
● Latam South/North
● Strategic commitment to growth in Mexico
● Vast growth potential for online business in Latin America
● Leadership consolidation in Latam South
Premiums 2014
● Mexico: €805 million
● Peru: €350 million
● Chile: €323 million
● Panama: €141 million
● Dominican Republic: €90 million
North America
● Present in 21 states (entering Vermont and Maine)
● Launch of new Life business
● Development of digital business
● Distribution agreement on West Coast
Europe and Middle East
● Acquisition of Direct Line in Italy and Germany
● €700 million in annual premiums, €30 million in annual profit
● 1.5 million clients; 1,400 employees
● Market share of 28% and 13% in direct automobile insurance in Italy and Germany respectively.
● Commitment to Turkey
● Non-life market share doubled to 7% in six years
● €573 million in premiums. Vast growth potential
Asia and Pacific
● China: Premiums of €42 million in 2014
● Assistencia: €36 million in premiums
● RE: Revenues of €57 million
● Development of a direct insurance business in China
● Progressive development of a multichannel offering in China
Over the coming months, Mapfre will reduce its structures in order to increase efficiency, the AGM was told. Mapfre Family will join Mapfre Enterprises with Mapfre Insurance which will also have Mapfre Life as a subsidiary company. Mapfre America will be joined to Mapfre International.
Mapfre intends to increase its geographical diversification so that by 2020 75% of its revenue will be obtained from outside Spain against today's 70%. Life and health insurance will go up to 35% of total revenue against today's 30%.
The group intends to get revenues of €30,000 million by 2016 against 2014's €26,366 million.
The group remains committed to create long-term shareholder value. It proposes to raise dividend by 7.7% and the total dividend proposed against 2014 results thus increases to €0.14 per share. In 2014, €431.2 million was paid in dividends - a payout of 51%.
Mexico will be one of the key countries where the group intends to gain growth, passing from 6% of market share to 10% in five years. The group also hopes to increase digital sales by 1% to 7% of world sales by 2020 through the expansion of the digital network to 35 countries.
Malta 'very important for Mapfre'
Announcing the results to journalists, Mr Huertas unexpectedly said that Malta is 'very important' for Mapfre. Mapfre has total leadership in Malta thanks to Middlesea Insurance and is a leader in life insurance. It is also important because of its online link with Bank of Valletta.
Malta figures
● 215 employees
● 5 offices
● 234 agents, brokers and representatives
● 62,718 insured vehicles
● Revenue 2014: €317 million (+30.2%)
● Earnings 2014: €3.7 million (+7%)
Mapfre businesses in Malta and respective market shares
● Auto: 24%
● Home: 37%
● Health: 25%
● Accident: 21%
● Life: 51%
● Corporate: 21%
● Travel: 33%
Premiums for Mapfre businesses in Malta
● Insurance €187,692,000
● Reinsurance: €3,343,332,000
● Assistance: €1,425,000
● Global Risks: €166,000
Replying to questions after his presentation, Mr Huertas said Malta is a beautiful country and Mapfre's decision to take over Middlesea has been proved right. The timing was right too with regard to its partnership with Bank of Valletta.
Malta is an EU member state and run in an English way and is thus important for Mapfre to develop its business in Europe.
Mr Huertas said he has met Malta's prime minister and is very confident the local group will continue to develop its personnel and its strategies. Mapfre has a future in Malta, he concluded