Mapfre, S.A.

Good morning and welcome to MAFRE's activity update for the first half of 2026. This is Felipe Navarro, Deputy General Manager of the Finance Area. Thank you very much for joining us. First of all, I would like to apologize for releasing results earlier than expected, but we had to wait for the closing of the Nasdaq. We are pleased to have with us Antonio Huertas, Group Executive Chairman, who will open the presentation with some remarks on the recently announced acquisition, as well as an overview of recent trends. He will be followed by José Luis Jiménez, our Group CFO, who will give us a brief overview of IFRS figures, which will report to the CNMV on a half-year basis, and will discuss the main financials under local accounting. Jaime Tamayo, the CEO of North America, will discuss the details of safety acquisition. I will walk you through the balance sheet and solvency data. You may submit questions at any point during the call using the Ask a Question link, and we will address them during the Q&A session at the end of the presentation. I will hand the floor over to Antonio.

Thank you, Felipe. Good morning everyone and thank you for joining us today. We are pleased to report that MAFRE has delivered solid performance with clear growth in profitability for the first half of 2026. Net profit reached 624 million euros, reflecting excellent performance across our core markets. Iberia and MAFRE were important contributors to earnings growth, while North America and Brazil also reported higher profit. This performance is supported by a diversified and resilient business model, as well as by the technical discipline reflected in our underwriting, pricing, and reserving decisions. At the same time, MAFRE maintains a position of financial strength, We continue to benefit from strong solvency, a growing equity base and a prudent approach to reserving. This gives us the flexibility to keep investing in the business while maintaining a conservative approach to capital and risk. In that context, I am proud to announce the acquisition of Safety Insurance, which is fully aligned with our strategic objectives. The transaction strengthens our leadership in Massachusetts and in several states in the attractive Northeast region, increasing our exposure to mature and stable markets and supports our growth objectives in businesses that we already know well and where we have been operating for decades. Furthermore, it is expected to be accretive and cash-generating for year one, and to increase the group's net income by over 5% once fully integrated. The funding of the deal will optimize our capital structure, creating significant value for shareholders. Jaime Tamayo, our North America CEO, will provide further more details later on. With safety reinforcing our strategic direction, I'd now like to spend a few minutes on the key figures, which show that MAFRE is on track to meet the updated targets announced at the March AGM. Premiums are up over 1%, and I'd like to highlight that the currency effect is beginning to turn positive. What's more, our profitability continues to improve. The non-life combined ratio stands at an excellent 92.8%, down both year-on-year and quarter-on-quarter, and even below our updated target range of 93% to 94%. The net result is up over 9% and the adjusted ROE is well over 13%, which puts us firmly on track to achieve our target for the final year of the strategic plan. We maintain a strong solvency ratio of 206.8% as of March, above the midpoint of our target range. I will now hand over to José Luis, who will walk you through the details of the first half.

Thank you, Antonio. Before we move on to the local figures, I would like to briefly comment on the main IRFS KPIs, which are very aligned to local GAAP. Insurance revenue stands at almost 14 billion, up around 4%. The net result amounts to 646 million under IFRS, exceeding local GAAP by 22 million. RFS 17 had positive impact of 17 million, discounting offset a negative impact from the risk margin and loss component, and other differences. RFS 9 had a positive 5 million impact, The positive mutual fund valuation book in P&L offset the realized gains on equity recorded under OCI. The holders' equity is just over 10 billion and the return on equity is 12.4%, consistent with local GAAP. The gross CCM is broadly unchanged, around 2.6 billion euros and 1.7 billion after tax and minorities. The 90.4% combined ratio under FRS is below the local figure, mainly due to the scant factor which had around a two-point impact. Let me now turn to the main highlights of the profits and loss account, now focusing on local GAAP. Starting with non-life, premiums reached €12.3 billion, up 0.3%. The non-life technical result increases to €648 million, up over 9%, supported by prudent management as well as an absence of relevant events. The combined ratio improved to 92.8%. The improvement is driven by the loss ratio of 65%, down nearly one point, while the spend ratio stands at 27.8%. Non-life net financial income increased over 70 million, supported by high portfolio deal and active portfolio management. Gross realized gains amount to $49 million in the first half of the year, around $50 million more than in 2025. Most of these gains were realized in the first quarter. The results of the non-live business reached $1.1 billion, up over 10%. Turning now to the live business. Premium reached $3.8 billion, growing nearly 4%. Life savings premiums are down due to a relevant corporate policy in Iberia issued in the second quarter of 2025, which is affecting the year-on-year comparison. Excluding this policy, life premiums will be growing 15.5%. Life protection continues growing especially in Brazil, Mexico and Iberia, with a combined ratio under 88%. Gross realized gains reached close to 20 million euros, up 6 million year-on-year. The results of the live business reached 354 million, up 2%. The results from other business activities, which mainly include holding company items and financing expenses, has improved compared to the previous year. Hyperinflation adjustments are up 8 million euros compared to last year, mainly due to a higher adjustment in target. Let me now take you through the performance of the different regions and business units. Overall, Iberia delivered solid performance, driven by technical improvements and a well-diversified business model. Net results reached 279 million euros, up 17%. Total premiums remained stable. Non-life premium growth is supported by motor and accidental health. General RPC is impacted by extraordinary transport issuance in the first quarter of 2025. Life premiums were lower due to a comparison commented before. Excluding this operation, growth will be 18.8%. The combined ratio is down over two points to 194% and the return on equity is now close to 15%. Immortal earnings has doubled year-on-year to 74 million, while the combined ratio is down around 4 points to under 95%, although there is a slightly higher frequency compared to the previous quarter. Premiums are up close to 2%, supported by a rise in the average premium of around 4.3%. The vehicle fleet is only slightly down year-to-date, showing clear signs of stabilization. The accident and health business is also delivering solid performance, with a noteworthy combined ratio under 94%. In general P&C, premiums declined by 2%, mainly due to extraordinary issuance in the transport line in the first half of 2025. Excluding this impact, premiums will be up over 1%. Additionally, the combined ratio improved by 2 points, despite the impact of the first quarter storms. Brazil continues to be an excellent contributor to profitability. The net result reached 136 million, up 4%, and the return on equity stood at an excellent 25%. Premiums surpassed 2.2 billion euros, up 4%. After several quarters of depreciation, the real is now a tailwind. Up 4.8% year-on-year. Growth at cost and exchange rate is slightly down, 0.7%, still impacted by the effect of high interest rates on credit-linked insurance, mainly agro and life protection. Other general P&C lines contribute positively to growth, and the combined ratio stands at an excellent 65.7%, supported by agro, which remains below 60% in line with previous quarters. Regarding the life business, life protection premiums are growing over 4% in euros, and earnings are up 9%, with a combined ratio of around 85%. Ode La Tam is reporting solid growth with premiums up over 6% to 3.1 billion euros, supported by the strong life and accident and health volumes which offset lower issuance in property, where policies are often dollar-delimited. The combined ratio stood at 99%, up nearly four points, driven mainly by motor and accident and health, where we are seeing higher claim costs which will be gradually offset with tariff adjustments. In Mexico, premiums are up over 13%, with life growing 90% and accident and health growing 40%. The result is just over 9 million. In Peru, premiums reached 454 million euros, up 6.6% with net results of 29.6 million euros. In Colombia, premiums are down 2% to 275 million, with a net result of 7.2 million euros. North America continues to show solid performance and improved technical profitability with the net result up 40% to 69 million. The combined ratio continues to improve with general P&C at an outstanding 80.6%. Premiums are down just under 7% affected by the US dollar depreciation. The Bitcoin fleet is showing signs of a return to growth reaching 1.2 million Bitcoins, up 0.3% year-to-date. Mufflery includes both reinsurance and global risk. Premiums reach €4.3 billion, down 1.5%. Both businesses have been affected by the reduction in market rates, while global risk has also been impacted by currency depreciation, as around three-quarters of policies are dollar-denominated. The combined ratio improved to 95.2%, down 0.7 points. There were no claims with relevant losses during the first half of the year, except for the storms in Portugal and Spain last February. Regarding the earthquake at the end of June in Venezuela, we have made a conservative estimate of an attributable loss of around 25 million euros, based on currently available information. Reserves remain in the upper end of the confident interval, with a two-point impact on the June combined ratio, with no additional prudence during the second quarter. The non-live financial result was up 42%, supported by solid investment yields, a higher net realized gains of 26 million compared with 6 million in 2025. In EMEA, growth is supported by Germany and Italy, partially offset by the 12% currency depreciation in Turkey. Results have been impacted by reserve strengthening in Italy, leading to a 4.6 million loss for the region, despite the strong turnaround in Germany. The non-life compound ratio is stable year on year, driven mainly by motor, with Germany below 100%. General PNC still reflect the impact of the floods in southern Antakya in the first quarter. In Antakya, the business remains conditioned by hyperinflation adjustments. Financial income continues to benefit from high interest rates. I will now hand the floor over to Jaime to work us through the details of the safety insurance acquisition.

Thank you, José Luis. We have taken a strategically important step to form IFRE. Safety Insurance is a well-established non-life insurer with a strong profitability track record and a solid presence in the independent agent channel. This strengthens our position in several states in the Northeast, achieving absolute leadership in Massachusetts, where we expect to reach approximately 25% market share in auto and 17% in homeowners. It expands our scale across both retail and commercial lines, giving us a stronger platform for growth across the region. The offer is $105 per safety share in cash, representing a valuation of over $1.5 billion. We expect the acquisition to be accretive and generate cash as of the first year, with over $30 million of annual cost synergies expected to be delivered within three years, which will generate and over 5% uplift to net income for the group. The proposed financial structure is prudent and aligned with our capital framework and risk appetite. Felipe will go into the details later on. The transaction is expected to close in the first quarter of 2027, subject to the required shareholder and regulatory approvals. Safety has reported profit 44 out of its 45 years of history. with an average 97% combined ratio over the last 10 years. The business has relevant scale and is well capitalized with around $1.3 billion in premiums, total assets around $2.5 billion, and shareholders' equity of $900 million. It brings demonstrated profitability with $99 million of net income in 2025 and a return on equity of 11.5%. Additionally, the franchise has a wide distribution Pérez de Lema Holweg, Jose Manuel Inchausti Perez, Jose Manuel Pérez de Lema Holweg, Jose Manuel Pérez de Lema Holweg, Jose Manuel Pérez de Lema Holweg, Jose Manuel Pérez de Lema Holweg, Jose Manuel Pérez de Lema Holweg, Jose Manuel Pérez de Lema Holweg, In addition, total assets will reach $6.8 billion. Safety is well positioned in attractive segments, with Massachusetts representing over 90% of the book and the smaller exposures in New Hampshire and Maine. The portfolio is focused on personal and small commercial lines, with private auto representing 55%, commercial auto another 15%, and homeowners 25%. On the left, you can see the performer market shares. As a leading non-life insurer in Massachusetts, safety is number four in private auto with 9% market share, number one in commercial auto with a 12% market share, and number three in homeowners with a 7% market share. Following the transaction, MAFRA USA will reach a combined market share in Massachusetts of 26% in private auto, 22% in commercial auto, and 17% in homeowners, consolidating the number one position in all three lines. This transaction provides the platform to tap to a larger, very profitable opportunity, the Northeast region, which is among the top insurance markets in the U.S. in terms of profitability, especially in property. The dollar market for personal and commercial lines in New England reaches $33 billion, with Massachusetts accounting for nearly half. This is a relevant and affluent region, which will underpin growth in the coming years. In New England, MAFRA and Safety combined will hold a 13% market share in private auto, consolidating the number two position, and reaching number one in commercial auto and homeowners with 11% and 8% market shares. We expect material value creation from already identified synergies. Integration should be manageable with low execution risk. The identified cost synergies are over $30 million around rate per year. The savings come from clearly defined initiatives, including reducing duplicities of shared services, underwriting claims and call centers, facility management, investments, advertising, and delisting, among others. The Performa Mafra USA expense ratio is expected to go down by around one point by year three. We anticipate around $40 million of one-off restructuring expenses as a result of the integration. There are also important capital benefits. Through the reinsurance redesign, we expect more than $140 million of excess capital while providing stability to the underwriting result over the cycle. In short, this is a transaction with clear strategic and financial rationale. It deepens our presence in a mature and attractive market strengthens our competitive position and creates value for all stakeholders, clients, agents, employees, and shareholders. I will now hand the floor to Felipe to discuss the Group's balance sheet and capital-related topics, as well as the proposed funding for this transaction.

Thank you, Jaime. Before going into the details of the funding, let me discuss the solid capital position of the Group. Shareholders' equity sits at $9.6 billion, increasing 7% during the year. There have been positive contributions from currency conversion differences, with the Brazil real and the U.S. dollar appreciating 9 and 3% respectively, as well as from the improved valuation of the investment portfolio. Leverage stands at 21%, roughly in line with December. We successfully repurchased almost 60% of our March 2027 Callable Tier 2 bond and issued a new 11 non-Call 10 Tier 2 bond, at very attractive levels and over 5.5 times oversubscribed. There is still around 260 million outstanding on the March 2027 Callable bond, which adds around 2 points of leverage due to the early refinancing. This places us in an excellent position to tap the markets in the second half of the year. Regarding safety, we expect it to be debt-funded, with 700 million in Tier 2, 500 million in Senior, and the remainder through bank debt. We have a bridge facility in place to provide certainty and flexibility for us to access the capital markets. With the proposed funding structure, we expect around a 10-point impact on the solvency ratio and around 7-point impact on the leverage. This is in line with a risk appetite and we do not expect any impact on ratings. Total assets under management stand at over 70 billion, growing over 8% year-to-date. Our investment portfolio amounts to 46.5 billion, reaching 51 billion, including Unitlink. Asset allocation has remained stable since the beginning of the year, and alternative investments remain a small share, under 4% of the investment portfolio. Our savings and investment business continue to grow strongly, confirming our aim to remain a benchmark in financial planning, with third-party assets reaching 19 billion. Mutual funds are up 26%, driven by Brazil, with solid growth in Spain as well. I will now focus on our actively managed fixed income portfolios, which are around 20 billion. The remaining 15 billion is allocated to cash flow on duration-matched portfolios, minimizing interest rate risk. On the euro area, yields are stable or slightly up year-to-date, while the duration remains stable or slightly down. In our other main markets, the decrease in yield in the Brazilian portfolio to 12% is in line with the evolution of the SELIC rate, given the large proportion of floating rate notes. Now that the central bank is lowering rates at a slower pace than anticipated, we have taken this opportunity to slightly increase the duration of the portfolio. In North America, there are no material changes in yield and duration. Our portfolios remain well positioned to navigate the current volatile environment. I will now hand the floor over to Antonio to make a few closing remarks.

Thank you, Felipe. The acquisition of safety represents exactly the kind of opportunity we have been looking for, profitable and disciplined growth in markets we know well. It strengthens our competitive position in Massachusetts and across New England, where we are already strong, and it does so through a transaction with a clear strategic and financial rationale. It also deepens our presence in a mature and attractive market. Most importantly, this deal creates value for all stakeholders, clients, agents, employees, and, of course, our shareholders. Financially, the deal is accretive and capital efficient, with clear cost and capital synergies. It also accelerates innovation by combining data sets, technology, distribution and best practices. Beyond the transaction, our first half results show strong earnings and progress across core markets. Our financial position is solid, with high capital levels and a prudent approach to our balance sheet. We are entering the second half of the year with optimism, but also with prudence given a complex and competitive environment and signs of softening in certain insurance and reinsurance segments. MAFRE has proven it can navigate market cycles successfully and will remain focused on profitable growth. We are confident in our operations, in our people, and in our ability to continue creating sustainable value for clients, shareholders, and society as a whole. We are well positioned as we enter the final stretch of our strategic plan, which is already proving very successful, and we firmly believe that a strengthened position in the U.S. will build on that momentum. I will now hand the floor back to Felipe for the Q&A session.

Antonio, although most of you are already familiar with the process, as a reminder, you can use a Q&A tool on the bottom of your screen. We will organize questions by topic and answer them as time allows. Now let's start with the first set of questions. Juan Pablo from Santander asked about the cost synergies of 30 million U.S. dollars, that they look low. Do you think that there can be room to do more? There's another question coming from Kian Liu from UBS asking if we can walk them through the calculation of the 10.5 PE multiple and how the capital synergies are accounted for the calculation in particular. And lastly, Paz Ojeda is asking also, she would like to know the margin of improvement of the synergies that we have mentioned already.

Should I take it? So thank you for the questions. So the synergies we are presenting in our results today are established at $30 million. They are conservative. They are pretty conservative. I mean, we expect to achieve a higher level of synergies, but we really need to... We do expect those synergies more than probably to be higher. Additionally, we are expecting capital synergies as well. I mean, just by looking at safety's reinsurance structure and compare that with ours. We believe we can achieve at the very least $140 million in excess capital synergies in the safety operation. So I think, again, I mean, we do strongly believe that the synergies are conservative.

Okay. Thank you very much. We appreciate that the transaction is in line with our stated M&A strategies, from Autonomous. But the deal is a stage on the P&C. How do we find this deal on the P&C cycle across the year? Do you think that the performance of safety insurance could look weak, taking into account how much we have paid on this?

Okay, I'll take the first part of the question. Thank you. It's true. The deal is totally in line with our strategy. We have said many times that the U.S. is a core market, is a strategic market for MAFRE. And we were looking for new opportunities to grow in this market. In the past, we decided to stay away from some states where we didn't have enough scale. But we have maintained our strategy to grow in this market, principally in the states where we already are. Pérez de Lema Holweg, Jose Manuel Inchausti Perez, Jose Manuel Inchausti Perez, Jose Manuel Inchausti Perez, Pérez de Lema Holweg, Maria Elena Escriva Garcia Pérez de Lema Holweg, Maria Elena Escriva Garcia Pérez de Lema Holweg, In the most of our businesses, we have good combined ratios. And even in the States, in auto and homeowners, we have the best combined ratios we have had ever. So it is the right moment to do this acquisition and to try to gain a scale in the States.

Yes, Antonio, just building on your comments, we would like to stress the fact that safety has been posting profit in 44 years of the last 45 years of its performance. The last 10 years, safety has had an average combined ratio of 97%. Pérez de Lema Holweg. Having said this, the last five years, especially the three years after the exit of the pandemic from 2020 to 2023, have been very, very complex and complicated and tough years for the PNC industry in the U.S. The exit of the pandemic proved to be very, very complex. Inflation, the global disruption of the global supply chains, and all that created a massive inflationary Pérez de Lema Holweg, Jose Manuel Inchausti Perez, Juan Manuel Inchausti Perez, Juan Manuel Inchausti Perez, Juan Manuel Inchausti Perez, Juan Manuel At this stage, last year, safety posted a 99% combined ratio, so representing that they were back into the profitability levels from a technical perspective. And we do expect that profitability or technical profitability to improve in 2026 and beyond to this actual average that has been pretty sustained for the last 10 years of 97%. López-González, and Jose Miguel Alcázar. Thank you very much.

I'm going back to one of the questions that we had before about the 10.5 multiple of the company. You have to take into account that first that we have around 1.5 billion cost of the transaction. There will be this capital release related with the reinsurance business that is going to be above 140 million euros. We need to compare the capital needs of this company with the excess of capital that we have in this company against our present activity in the U.S., and we should calculate this around 200 million euros. And that will compare very well with around 100 million that made that last year, plus the synergies that we have already mentioned. So roughly you will arrive to this calculation of 10.5, the multiples. We have another question coming from Juan Pablo from Santander about solvency ratio in safety. And after Max from J.B. Capital asked about final impact on solvency on Mafra Group and what would be the initial impact at acquisition. So, Jaime, if you can drive us through the solvency level of safety, and I will come back for the calculation of the

Yes. From a safety's perspective, their solvency ratio, if we were to translate it into our standards from an accounting perspective, would be around 240 percent. So, clearly, well, very well capitalized entity. We do expect Pérez de Lema Holweg, Jose Manuel Inchausti Perez, Jose Manuel Inchausti Perez, Jose Manuel Inchausti Perez, Jose Manuel Inchausti Perez, We want to be cautious and we have to go through the regulatory processes at the federal level as well as in Massachusetts and we have to receive feedback from our regulators in terms of what levels of capital we should maintain going forward.

Related to the solvency level, I will tell you that the calculation of the impact on the solvency level is as a pro forma coming from the 2025 impact. So this is going to be the biggest impact that we are going to find in this transaction after MAFRE will continue building on the solvency in the company. So this is the acid test on the solvency, the one that we have published. I have a next question about the transaction. We say that we may think that it is or we are stating that it is within the M&A strategy. But the question from Yuri Shikori is that this deal is at a stage in the PNC cycle and the historical financing situation of state insurance. I think that we have already commented on this. Juan Pablo from Santander asks about the deal and capital allocation that is more accretive than a share buyback on an extraordinary dividend. This is a question of how we manage the capital of the company. So it's a very interesting question.

Well, regarding the deal, as the President has said before, I mean, this is quite the strategy for us. We are doing a deal in a region that we know extremely well, the same kind of business that we are actively doing there. The situation of our operation in the U.S. is quite strong, probably is the best momentum for the company since we started in the U.S. a long time ago. And we tend to believe that this deal is very good for customers, it's good for employees, and it's good for shareholders. It will provide value for the group from the first minute. And probably this type of capital allocation probably makes more sense than a safe bay back or a dividend. In terms of the safe bay back, you know, we have a free float around 30% of the total shares, so probably for us, Thank you very much. Thank you very much.

Yeah, even I would like to add that it's important in our strategy to think always in a long-term vision. So we have to cement our presence in the states where we already have an extraordinary presence in Massachusetts, and we want to increase the scale of our business there to be more competitive and to think about the results in the next three, So, we think that it's always important to think about the short term, but also trying to gain scale, to think about how we can grow more in the next few years. And this operation, this transaction, it's focused on this strategy.

Thank you very much, Antonio. There's a question coming from Juan Pablo Santander. Safety management will remain on board? This is a question. And if not, there could be a risk to replicate the business?

Thank you for the question. Safety management is going to remain on board. I mean, we've proceeded since day one, since we started talking with the senior management of safety. We proceeded in a friendly fashion, so every step of the way in this transaction has been made with the consensus of Pérez de Lema Holweg, Jose Manuel Inchausti Perez, Jose Manuel Pérez de Lema Holweg,

Okay, thank you very much, Jaime. Patojeda is asking from Banco Sabadell, she's asking about the evolution of the first quarter 2026. This company has been quite weak because of the storms and there's a revision of the rating revised from the outlook from the AMBEST. What kind of confidence levels do you have on the reserves runoff of this company? What's your impression, Jaime?

The first quarter of 2026 in the Northeast region and specifically in Massachusetts has been impacted by winter weather. Several storms have hit the region. This is pretty normal. The weather cycle is pretty much the same every year with more or less intensity. The difference with our performance, for example, when you look at our performance during the first quarter at MAFRA USA level versus safety is our insurance structure. That's why I was mentioning before that we intend to change the safety for insurance structure in order to eliminate the volatility during the winter weather months so that we can produce more stable results. Having said this, on a We all suffer the same kind of weather impact. And regarding the reserves, we believe that safety will continue to deliver redundancies on an annual basis. This has been the pattern, historical pattern of safety for the last, I would say, 15 years at the very least. And our expectation is that there will be An average potential redundancy in safety, consistent redundancy on an annual basis between 30 to 40 million dollars per year.

Okay, thank you very much. There are a couple of questions that I think that already been answered. The first one related with the concentration is coming from Nimrat Kaul from Bank of America. The first one is related with this question of the storms and how they're dealing with this, and I think that you already answered it. And the second one is related with the release of the previous year development. So I think that we can take them as answered. There's a question about the expected return on investment that we are going to have on this company. You have said that we will increase the group net income by 5% in three years. If the consensus is expecting 1.3 to 1.4 billion, should we expect safety contribute by 70 million euros?

We should, definitely. I mean, 70 million euros has been the net income produced by safety at the closing of 2025, $99 million of net income last year. That, this $99 million was produced with a 99% combined ratio. As I said before, for the last 10 years, safety has been posting a 97% combined ratio on average. So we should expect, at the very least, this level of contribution of 70 million

Thank you very much. There is a very simple one. Could there be restrictions on the coming years to recapital repatriation coming from Pajadojeda, Macosabadell?

I don't think so. The good thing about, as you all know, about doing business in the U.S. is that it is extremely predictable. It's a very mature, serious and predictable market. We know and we understand how to deal with our different regulatory bodies and I do not expect We do not expect any restriction whatsoever in terms of capital repatriation as long as it is done with the proper and appropriate approvals from the regulators.

Thank you very much, Jaime. And a very last one. This is related as well on the footprint of the company and how the clients are in this company different from the ones that we have in MAFRE. Could you qualitatively describe the key portfolio difference in terms of type of customers between you and Safety Insurance?

Yes, essentially the direct answer would be that there's none. Safety, the beauty of this operation and this transaction is that safety's business is exactly pretty much the same business that we're writing. They write private auto, they write homeowners, they write commercial auto, small commercial business. That is exactly what we write in Massachusetts. We do share out of the 800 agencies that they have appointed pretty much and 90% of those agencies also operate with us. So we do know very well, very extremely well what they do, but it is, as I said before, essentially the same business, the same distribution and the same quality of customers that we would be adding into the Mafra USA umbrella as soon as the transaction closes.

Thank you very much, Jaime. Now we are going to move to the reinsurance business. The Q2 standalone growth was 6%, despite the softening market. Please, could you unpack the drivers of growth and what margins this growth achieved? And also on the 94.1 combined ratio on the quarter standalone that was being achieved with a B9, not cut, and no additional reserves addition, would this imply to meet to high 90s clean run rate normalizing for cut business? This is coming from from UBS. Thank you, Felipe.

Regarding the re-institutional business, the property cap pricing, particularly on the KSL treaties, keeps on softening while the structures are mainly holding. In terms of price softening, we could say around 50% is adjusted. And it is true as well that we have more capacity being deployed in the market. But we have to say that the campaign that has been run by MAP3 has been quite successful. We continue to focus on diversified lines of business, overall multi-line approaches preferred by clients and brokers. And we have a deep-key relationship which is bearing fruits and consolidating our position. On the other hand, the structured business is bringing meaningful additional volumes for the business. We have to say that the opening of the new office in New Delhi is contributing quite successfully. But we would love to see the combined ratio on those levels. But we have as well to point it out that we are just at the beginning of the hurricane season, and we have to be prudent.

Thank you very much, José Luis. Max from JEP Capital is asking about the premiums that were performing well despite the soft market. And he's asking, are we taking more risk? And I have another one coming from Juan Pablo from Santander that is asking about the pricing evolution after the renewals and the impact in the combined ratio. I think that they're very much related, both questions.

Sure. Probably coming back to the first question, probably the answer is quite simple. No, we are not assuming more risk. I think we are moving more onto structured products, which is they are performing well, but it has no big change in our risk appetite as well as our investment portfolio.

Thank you very much. Related with Maffrerie, we mentioned that the reserves are at the upper end of the confidence interval. There were a very relevant reserve strengthening on the past, and there was any kind of release during this quarter? Could you also comment on the outcome of the recent treaty renewals and the trends that you expect for the second half of this year?

For sure. I mean, no release at all. I would say, on the other hand, you know, we would suffer the earthquake in Venezuela at the end of June. We prefer to be extremely prudent. We assume 25 million euros are the result for this. We don't have much information so far. We have to wait. I mean, as the weeks and months will pass, we will see if the problem is Venezuela of this size or lower than this. But no release at all. At the garden, the second part of the question, I think, looking forward, probably we are suffering a little bit of soft market. But also, this is a question that probably will appear later on, El Niño could change a bit what's going to happen with prices in the second part of the year. Thank you very much, José Luis.

There is a question related with Spanish wildfires. I think that, Antonio, you want to comment on this?

Yeah. Actually, we are deeply saddened by the scale severity of these wildfires in some regions in Spain, devastating some rural areas. So far, based on the information available Pérez de Lema Holweg, Jose Manuel Inchausti Perez, Juan Bernal Aranda, Leandra Elizabeth Clark, Vanessa Escriva Garcia

Thank you very much, Antonio. Regarding Ode Latam, what is your estimate of the impact of the recent regulatory headwinds in Mexico and Colombia in the first half?

It is true that in what we call Ode Latam, we have suffered a bit during the first quarter. In Mexico and Colombia, we have observed an increase in claims frequency and inflation. However, we are already implementing technical measures and pricing adjustment, whose efforts will be reflected progressively over the coming quarters. In Colombia, if you remember what happened at the end of last year, we have a significant increase in the minimum salary, and we have also observed some second-round inflation effort. Lastly, in the case of Peru, where we have workers' compensation insurance for work-related accidents, you know that liabilities are indices to inflation. So when inflation rises, so does the cost of claims. However, as this obligation last March with inflation linked bonds, we have a compensation via financial results. So we expect that this has happened in the first part of the year, has less effect on the second part.

Thank you very much, José Luis. I have a couple of questions about this region as well. One is coming from Juan Pablo Santander, saying that the technical result has been weaker with a combined ratio of about 100%, asking about any extraordinary during the quarter. And Paz Ojeda is asking about how can we explain the evolution of LATAM in the first half of the year, And what is our view on the next months, on the next quarters?

Probably part of these answers has been commented before. The prospects for the second part of the year probably are more positive. You know, we had overall during a big part of last year headwinds regarding the FX effort. This is changing, and it's changing, I would say, completely. So far, I would say here today, we have, obviously, quite a strong appreciation in currencies for most of these countries. So we expect them to contribute a little bit more than on the first half.

Okay. We are moving now to Brazil. How do we see revenues going forward?

Let me say something about that. The situation currently in Brazil, also in other Latin American countries, is still in a specific situation because of the electoral processes there. So we can anticipate political stabilization after the electoral processes, and we can anticipate that after these processes, The fundamental of the economy will be better and the possibility to distribute more insurance products linked to financial products should be wider. We consider that Brazil and Even other countries like Colombia in the same situation, even Peru and even Chile are economies where we have enough room to grow and we can expect a very positive forecast for the next quarter in terms of growth.

Thank you very much, Antonio. Juan Pablo from Santander is asking about the potential claims, damages from El Niño events in the following months. He's asking if we have any extraordinary reserves for these, or do we have any kind of forecast about this event in the future months?

As we have commented before, we are on the upper end of our strength band. We have no specific reserve for the business itself. But it's true, it's quite difficult to try to measure what could be the next effort. What we know so far is that the linea has a high probability of having a high impact. But on the other hand, there is a negative correlation with the hurricane season. But it doesn't mean if you only have one hurricane in the Caribbean, this could be a big impact, size or level five, let's say. In theory, there will be some kind of net effect. Parts of, in the case of Brazil, could suffer more from floods or raining, and other parts of Brazil withdraw. But the overall effect is quite difficult to measure. Just to remember that last year, we have as well some kind of forecast that it was going to be the worst year in terms of the hurricane season, and by the end of the year, nothing happens. So we are prudent. We continue to manage the business with a lot of care. We are prudent, so we are prepared.

Thank you very much, José Luis. We have now a block of questions coming related with EMEA. Antoine Bouchetout, he's asking about the details on the profitability of the main countries of the region, and what was the impact of the floods in the first half?

Okay, regarding EMEA, you know, we are operating there with four countries going one by one. In the case of Malta, probably the business is performing extremely well. We have a combined ratio around 85, 87. So it works pretty well as always. In the case of Germany, the business as well is having a very good performance. We have a combined ratio below 100. You know, we are seeing growth in terms of premium. So probably we're there to say that Germany is on track. Italy probably is suffering a bit more. You know, it's a small company. Probably we don't have critical mass, despite we are growing step by step. We have realized as well there are some kind of channels, distribution channels, which are not performing extremely well, especially with agents. So we are closing down those channels, and we are focusing on those that we are getting profitable results. In terms of prudence, I'm prepared for the rest of the year. We have decided to increase the reserve To be prepared. And Turkey is suffering from different sources. First, probably, it's one of the countries more affected by the Middle East crisis. You know, inflation is higher than normal, so there were no way to reduce rates and to increase GDP for the economy. And we are suffering a bit, as it happened in Novela Town for the second round inflation efforts. The flu was an impact that we had during the first part of the year, but it was one-off, and we expect to recover during the coming quarters.

Thank you very much, José Luis. His question as well about the combined ratio, that he seems stabilized and remains above 100% quarter after quarter. How is our medium, long-term view on these non-live businesses in the region? And what strategic options are we considering for the region of EMEA?

Well, in terms of the combined ratio, of course, we would like to reduce the figure below 100. But it's true that the weight of TARKE in the sum of the parts is really, really high. And despite we are making a lot of money on the financial side because they keep rates extremely high, we would like to see our normalization just on the combined ratio for the technical point of view. But in TARKE, it's going to take some time. The strategic options that we are considering are the same that we have last year. We try to improve business by business. As we said, we see an incredible improvement in Germany. Malta is performing extremely well. Italy maybe has some delay, but we are still extremely focused on coming back to our combined ratio below 100. On Turkey, we have to see what's going on with the Middle East crisis and see if we can get a more stabilised economy to perform business

Thank you very much, José Luis. Juan Pablo from Santander is asking about IMEA region. I mean, profitability, he says, that remains weak. And he's asking that if after acquiring safety, if we see any kind of change in a strategy and maybe dispose of any business with low scale and low profitability in competitive markets?

Following the acquisition of safety, we don't foresee any changes of our strategy outlined in our current strategic plan. All of our businesses are in the black, so we have already Pérez de Lema Holweg, Jose Manuel Inchausti Perez, Jose Manuel Inchausti Perez, Jose Manuel Inchausti Perez, Jose Manuel Inchausti Perez, Jose Manuel Inchausti Perez, Jose Manuel Inchausti Perez, Jose Manuel To improve performance in underperforming life of businesses in trend countries. However, our technical ratios overall are already pretty solid, supported by favorable interest rates environment.

Thank you very much, Antonio, for your answer. I have a question in general about the motor. It's coming from Malaysia, from Barclays. Considering the motor pricing cycle and the uncertain outlook of motor insurance in the AI era, what is the rationale of investing in motor insurance at a very high multiple?

Well, regarding the investment in motor pricing cycle and the uncertain outlook of motor insurance, probably uncertainty is here and it has been with us forever. But it is true that this type of business is something that we do well. I would say all over the world, and also in a region that we know extremely well. So for us, it's trying to strengthen our strategic position in the U.S. We are getting more psych, getting more critical mass. As I said before, I think this deal could be good not just for shareholders, but as well for customers and employees. And with the AI, there's a lot of discussion about this topic. But something which is clear is that if you compete in terms of quality, in terms of services, if you are close to your customer, I think you can do it extremely well. And the artificial intelligence is also another lever that we are using right now, not just in the U.S., but in the rest of the world, in order to be more close to our customers and provide better services with a lower cost. So there are a lot of activities that we are doing with artificial intelligence and probably more activities that we will do on the coming quarters. So we have no pressure on that.

Thank you. Thank you very much, José Luis. We have a number of questions coming from different analysts related with combined ratio on motor in Spain. And I will ask them all together, and we can give a general answer on this. Juan Pablo from Santander asks about the combined ratio that increased to 97% in the second quarter. Do you expect to normalize at this level after a strong first quarter? Max from MassMission is asking what was the reason for the deterioration of the combined ratio in modern Spain in the second quarter? What kind of sustainable levels are you seeing in the coming quarters? Juan Pablo is also asking about the insured units that we see almost flattish quarter on quarter. And how do you see competition, prices, and revenues going forward? And finally, Max is asking about the average price increases that we are implementing in motor insurance in Spain. Finally, Alessia Magni from Barclays asked about the combined ratio deterioration on the second quarter and if there should be a change in trend which is sustainable. I know that is a hot topic right now.

Thank you for the question. I'm not sure I will remember all of them, but I tried my best. Regarding the market, it is true, it's a huge competition in the Spanish market, in auto. We are confident that after several years of trying to work really, really hard on the subscription, And technical measures, we have come back to profitability, probably a very good number. We saw it on the first quarter of this year. It is true that we have lower frequency because for most of you that remember what happened in Iberia during the first three months of the year, we have a lot of rainy days. Probably Spain was, or Iberia, was one of the regions with more rain In the second quarter, it has normalized a bit to normal frequency. So it is true that the guidance that we say to be in Spain with a combined ratio around 96-97 is where we are and where we expect to be in the coming quarters. On the other hand, worldwide to mention that we have carried out a quite important structural change with our network. And this is probably paying off slowly. So we see during the second quarter more, I would say, commercial activity. And probably the last four months of this half of the year, we have seen that the new production of policies has been the best for many, many years. So we are confident that the new commercial structure will pay off on the coming quarters.

Thank you very much, José Luis. We have a question coming from Maripaz Ojeda from Banco Sabadell. It's related with tolerance range on the leverage rate that we have in the MAFRE group. Antonio, can you give us an answer on this?

Regarding our leverage following the safety acquisition, we are very comfortable with the tolerance levels presented in our last AEM, which is around 24%. Given that we are a strong cash generator, we expect to gradually reduce our time to return to pre-acquisition levels.

Thank you. Thank you very much, Antonio. We don't have any more questions. I don't know if you want to make any kind of closing remarks.

Yeah. I would like to thank you for your questions and for your continued interest in MAFRE. We are very pleased with where the group stands today. We are delivering the best results in our history, supported by strong technical performance, financial strength, and a diversified business model. At the same time, we remain focused on the future. Alongside organic growth, the safety acquisition is an important step in strengthening our position in the United States and creating additional value for our shareholders over the long term. Recently this morning, S&P has announced that the improvement of our rating or holding, Maffray says, is going to be A, from A-, and Maffray is going to have the rating of AA-. So we consider that this is a very positive consideration, and even... Even S&P say that the potential acquisition of safety will have a limited impact of the financial risk profile of MAFRE while strengthening the group's competitive property and casualty position. So it's something very, very important today for us. Above all, I would like to thank you for the close follow-up. López-González, Jose Manuel Inchausti Perez, Jose Manuel Inchausti Perez, We do not take that confidence for granted. We remain committed to continue to create value, to growing profitability and to progressively improving our dividend as one of the key priorities for shareholders. So finally, we wish you all a wonderful summer and a well-deserved break. Thank you very much and see you again after holidays.

Thank you very much, Antonio, Jaime, José Luis. We will be available on the investor relations department if you have any further questions. Thank you very much.