Mapfre Sa Unsp/Adr

Good afternoon and welcome to MOPFRI's activity update for the first quarter of 2025. This is Leandra Clark, head of investor relations. Thank you for joining us today. We have here with us Jose Manuel Enchausti, first vice president of MOPFRI, who will make a few opening remarks and will give an overview of recent business trends. Later, Jose Luis Jimenez, the group's CFO, will comment on the main financials, and Felipe Navarro, deputy general manager of the finance area, will walk us through the balance sheet and 2024 embedded value figures, which were also released this morning on our website. Just as a reminder, this information is prepared under the local accounting policies applicable in each country. You can use the Ask a Question link at any point during the call, and we will open up the Q&A at the end of the presentation. I will now hand the floor over to José Manuel Enchausti.

Thank you, Leandra. Good afternoon, everyone. Thank you for your time today. Let me share some of the highlights of the quarter before José Luis and Felipe walk you through the details. Last year was a record year for MAFRE and I'm happy to announce we have started 2025 in an excellent position with the first quarter figures in line with the updated targets we announced at the AGM. As the Chairman stated, these excellent results confirm our positive outlook for the year, with improved ratios and more balanced sources of income and profit. Growth remains solid in most markets. Recent exchange rate volatility is affecting the top line, but premiums are still growing by 5.4%, reaching 8.6 billion euros. Excluding life savings, which is a more volatile business, they are growing nearly 6% in line with our target. Profitability continues to improve, with the non-life combined ratio at 94%, down nearly two points, with significant reductions both in the claims and expense ratio. The net result is up nearly 28%, reaching 276 million euros with an adjusted ROE of 12.8%. Our capital base remains strong despite market volatility. with shareholders' equity at 8.4 billion and the solvency ratio at 207% at year-end, above the midpoint of our target range. Our privileged business profile, with a high degree of diversification and a very broad approach to investment management, is helping mitigate the impact of this volatility. The implementation of our strategic plan is on track and our core businesses are all performing well. In Iberia, we have made significant advances in technical management and the motor combined ratio has improved by over seven points, reaching around 98% and we expect it to continue improving in the coming quarters. Overall, Iberia has made an excellent contribution with 121 million euros, up 66%, thanks to its diversified business mix with the motor business now in positive territory, as well as strong results in general property casualty and the life business. In LATAM, performance has been excellent, with most countries now with combined ratios below 100% and improving, except in hyperinflationary markets. Brazil has had an excellent quarter, with a net result of 62 million, and there have also been important contributions from Mexico, Peru, and Colombia. The live business is highly profitable and non-live business has improved significantly and financial income continues to be a tailwind. The region reported a total result of 118 million euros up 25%. The largest challenge we are facing right now is currency volatility, which has increased in the last few weeks. We have lived through other similar periods in the past and are confident that our diversified business model will continue to prove resilient. North America is reporting one of the highest first-quarter profits ever, with €30 million up 94%. Technical measures are paying off with a relevant improvement in motor, with the combined ratio under 97% and solid profitability in general property and casualty. MAFRE-RI continues to show solid performance. Growth has been excellent this year, and MAFRE-RI's prudent approach to underwriting, diversification, and retrocession continue to deliver results. We faced a large claim in the quarter due to the California wildfires, one of the costliest events in the history of the U.S., with a net impact of 85%. million euros after retrocession tax and minorities. Our reserves continue in the upper end of our confidence interval and we increase prudence even further during the quarter. That was due to a conservative approach in the face of an ongoing rise in secondary perils over the last few years, in particular storms in Europe and in advance of the North Atlantic hurricane season. Results were resilient with a net result of 48 million and a combined ratio under 98%. In conclusion, our core businesses are delivering exceptional figures, supported by a focus on technical excellence, diversification and tailwinds from financial income. These outstanding results are backed by a long-term strategy focused on profitability growth technical excellence and diversification as set out in our 2024-2026 Strategic Plan. Now, I will hand the floor over to José Luis to walk us through the main figures.

Thank you, José Manuel. As mentioned, premiums are up over 5%, with a nearly three-point strike from currency movements, as we continue to see headwinds from the Brazilian real, the Mexican peso, and other Latin American currencies. At cost and exchange rates, premiums are up 8%, with growth in most lines of business. Non-life, which is around 80% of our business, continues to be supported by tariff adjustments. Premiums are growing almost 10% at cost and exchange rates, over 7% in euros, reaching nearly 6.8 billion. Performance in the accident and health line has been noteworthy. Our 5.5% general P&C is growing nearly 4%, while motor is growing over 3%, reflecting our risk appetite. Preinsurance is having an excellent year, up over 7%. The live business, which is around 20% of premiums, is down 1.5% in euros, with a drag from the Brazilian real. In local currency, premiums are growing 2.4%. I will now discuss the key trends by region, complementing the figures already provided by Jorge Manuel. In Iberia, total premiums are growing around 3%, with non-life up over 5%, with strong trends in most lines of business. Life premiums are down around 3%, which I will explain later. The combined ratio has improved over 4 points to 95.6%. The higher returns on the investment portfolio continue to boost the financial result. The return on equity is now approaching 13%. Profitability in LATAM has been excellent, with a return on equity around 18%. Both the non-live and live businesses are contributing very positively, and financial income remains a tailwind. Brazil continues to see exceptional profitability, posting a return on equity of around 26%, and a net result of 62 million, with improved technical ratios and high investment returns. The non-life combined ratio is around 76. Premiums are down 12%, with a strong impact from the Brazilian real. In local currency, business volumes were flat, with life and agro-segment still affected by the rise in interest rates. Odela TAM continues to show strong profitability, contributing over 56 million, up 68%, with improvements in technical results in most markets, with an almost 5% reduction in the combined ratio to 95%. Premiums are up over 10% in euros, with a strong growth in local currency in almost all countries in the region. In North America, the net result reached 30 million, nearly double compared to last year. Driven by underwriting measures and significant tariff increases, the combined ratio has decreased over three points now to 97.4%. In EMEA, losses have been reduced significantly, from 9 million last year to around breakeven this quarter, with an 11-point reduction in the combined ratio. There has been noteworthy improvements in motor in Germany and Italy, thanks to technical measures. Regarding mufflery, José Monel has already gone over the main figures and the impacts from the fire, which were 85 million net, 136 million gross. I would like to comment that the reinforcements of our SF had a one and a half point impact on the combined ratio. Finally, MAUDI continues to contribute positively. I will also like to address two specific items. There has been lower hyperinflation adjustment from around 25 million last year to 9.5 million this quarter, mainly in Argentina. And second, last year there was a 50 million positive tax impact which affected the holding. Overall profitability levels in general P&C are excellent, benefiting from technical discipline, strong market positions, and diversification across our different markets. Premiums are up nearly 4%. The combined ratio is excellent, around 84%, and the net result was $87 million. In Iberia, premiums have risen by 11%, with growth in most segments and exceptional performance in commercial lines. The combined ratio was 96.7 and the result was 27 million, down due to reserve strength mainly in burial as well as large claims in commercial lines. On the other hand, we are seeing solid and improving trends in homeowners. In Brazil, premiums are down around 8% in euros, but nearly 5% in local currency. Agriculture issuance is still affected by the high interest rate environment and falling commodity prices. The net result is 37 million, up around 5%, and the combined ratio has improved to 68%. This excellent level is supported by the solid agro ratio, although slightly up, and a strong performance in the retail lines, as well as the lack of relevant events. In North America, premiums continue to grow, around 5%, supported by tariff adjustment. The net result stands at 6.5 million, up 5.5% compared to last year. Regarding the motor segment, first quarter results confirmed previous trends, showing a huge turnaround. The combined ratio is now around 99%, with a six-point improvement year on year. And the net result has reached more than 50 million compared to a little under 30 million in losses last year. In Iberia, the combined ratio is now at around 98%, and we expect it to continue improving throughout the year. Premiums are growing 4% and reflect average premium growth of 7.5%. In Brazil, premiums are down mainly due to the currency depreciation. The combined ratio is slightly up to 102.5% in line with increases in interest rates, which are helping reach a net profit of 3 million euros. In North America, the result reached 21 million euros, up nearly 190%, with the combined ratio down 5 points to 197%. Regarding other business units, performance in other Latinas has also been excellent, with all units now reporting combined ratios below 100, with the exception of Argentina. In EMEA, the combined ratio is also significantly down from 124% to 112%. In conclusion, the technical measures implemented are now clearly paying off, and these trends will continue improving throughout the year. The lab business contributed $70 million to the result, with Iberia being the largest contributor, followed by LATAM. In Iberia, total premiums are down 3%, affected by the lower level of layer 7 group policies. Protection premiums are up over 3%, with the combined ratio standing at an excellent 64.5. Portfolio yields continue contributing to the financial result with lower realized gains. The net result was 32 million. In Brazil, premiums are down around 19% impacted by the currency, as well as the high interest rate which affect lending and related insurance sales. The net result was 17 million, very much in line with last year, with the protection combined ratio at 83%. Regarding the rest of the countries, volumes are up over 20% laid by Odelatam. Performance in both Mexico and Malta has been noteworthy, growing 20 and 30 percent. The result reached 21 million euros. Now, I will hand over to Felipe to discuss the main balance sheet items.