Mapfre Sa Unsp/Adr

Good morning and welcome to MOPFRI's activity update for the third quarter of 2025. This is Leandra Clark, Head of Investor Relations and Capital Markets. Thank you for joining us today. We are pleased to have here with us José Manuel Enchausti, Vice President of MOPFRE, who will provide some opening remarks and an overview of recent business trends. Following that, José Luis Jiménez, our Group CFO, will discuss the main financials, and Felipe Navarro, Deputy General Manager of the Finance Area, will walk us through the balance sheet. As a reminder, we report IFRS financial information on a half year basis. The information in this activity update is prepared under the accounting policies applicable in each country, which generally do not apply IFRS 17 and nine. You can use the ask a question link at any point during the call, and we will open up the Q&A session at the end of the presentation. I will now hand the floor over to Jose Manuel Enchausti.

Thank you, Leandra. Hello, everyone, and thank you for your time today. Let me share some highlights of the quarter before José Luis and Felipe walk you through the details. Results have been excellent with higher profitability in all regions and in our main business units. We are outperforming almost all updated targets announced at the AGM. However, If we look at the macroeconomic context, the world economy is continuing to slow down with fiscal tensions, trade wars and higher geopolitical risk. This is creating exchange rate volatility that is affecting our top line, especially the US dollar and Latin American currencies. Premiums have grown 3.5%, reaching over 22 billion. And at constant exchange rates, this would more than double, reaching nearly 8%. Non-life, which is more than 75% of our business, continues to benefit from improved technical management. Premiums in this segment are growing over 6% at constant exchange rates, almost 2% in euros, reaching over 17 billion. The live business is up around 10% in euros, nearly 40% at constant exchange rates, reaching over 5 billion. The non-life combined ratio is now 92.6, down more than two points, with a strong reduction in the claims ratio to 65%, and an excellent expense ratio at 27.5%. The net result is up nearly 27%, reaching 829 million euros, with a return on equity of 12.4%. These results include extraordinary impacts of 79 million euros from the partial goodwill write-down in Mexico and the derecognition of tax credits in Italy and Germany. This is the result of an ongoing review of our balance sheet with a prudent approach to valuation. The adjustments have had no impact on our cash flow positions nor our capacity to pay dividends. Without these one-offs, the result would stand at an excellent 908 million and the return on equity over 13%. Our capital base remains strong despite market volatility. with shareholders' equity up 5% during the year, reaching 8.9 billion euros, and the solvency ratio close to 209% at the end of June, in line with our target range. These robust results have allowed us to increase the interim dividend to 7 cents per share, up nearly 8% compared to last year. Core businesses are performing extremely well, supported by the progress in the implementation of our strategic plan. Overall, Iberia has an excellent contribution to results, with almost 350 million euros, up over 22%, thanks to its diversified business mix, with the motor result up more than 80 million, consolidating its recovery. There were also strong contributions from general property and casualty and accident and health. We continue to see the positive effects of our technical management with the motor combined ratio improving by 6 points to 98.5% and accident and health improving 4.5 points to 95%. In LATAM, performance has been outstanding, with a combined ratio of 83% and almost all countries below 100%. The largest challenge we are facing in the region right now is currency volatility. We have been operating in this market for many years and are confident that our diversified business model will continue to prove resilient. While currencies are affecting the top line, results are strong across the region. Brazil has had an excellent quarter with a net result of almost 200 million, up 6% with very strong margins. In addition, Mexico, Peru, and Colombia together contribute over 100 million to the results. But both the non-life and life businesses remain highly profitable with improvements in the combined ratio across most clients. And financial income continues to be an important tailwind. The region reported a total result of 340 million, up 11%. North America is delivering an excellent result of nearly 100 million euros, up 40%. Technical measures continue to pay off with relevant improvements in motor and general property and casualty. Finally, in MAFRE RE, prudent underwriting, diversification and adequate retrocession are delivering solid results. We continued increasing prudence during the quarter. with reserves still in the upper end of our confidence interval. Hurricane season has been very quiet. However, we prefer to maintain a conservative approach. Performance was outstanding, with a net result of 256 million and a combined ratio under 94%. In conclusion, we are extremely satisfied with this year's results. The Board of Directors approved an interim dividend of 7 cents, an almost 8% increase to be paid on November 28th. It was the fourth consecutive increase, bringing total dividends paid in 2025 to 16.5 cents, 508 million fully in cash. This is the highest dividend ever paid in a year. During the last five years, MAFRE has paid out 2.3 billion euros to shareholders. The average dividend yield for this year is over 5% and more than 7% for the last five years. I will now hand the floor over to José Luis to walk us through the details of the quarter.

Good morning to everyone. I will now discuss the GIT transfer region, complementing the figures already provided by José Manuel. In Iberia, total premiums are growing over 9% with solid growth in most lines of business. Non-life is up nearly 5% and life premiums are up 20%. The combined ratio has improved two and a half points to 95.9%. And the investment portfolio continued to boost profit. The return on equity is now up almost two points to 13. Profitability in LATAM has been excellent. Brazil continues to see excellent results, posting a return on equity of over 27%, with improved technical ratios and high investment returns. The non-life compound ratio is around 72%. In local currency, business volumes were down slightly, with the Lincoln segment still affected by high interest rates and the macro and geopolitical contest. Premiums in euros are down 11.5%, with a 9-point exchange rate impact. Odela TAM continues to deliver strong profitability, contributing over €140 million, up 19%, with technical improvements across all lines, leading to a three-point reduction in the combined ratio to 96%. Premiums have been very affected by chain rates, with strong local currency growth in key markets like Mexico, Colombia and Peru. In North America, premiums are down 4% in euros, with a three-point drag from the US dollar. The combined ratio is well under 96%, improving around three points. In EMEA, losses in Germany and Italy are going down significantly. The region is reporting its second consecutive quarter of positive numbers, with a 7 million profit, compared to almost 19 million in losses last year, with a 6.5 point reduction in the combined ratio. Regarding mastery, José Manuel has already commented on the reserving strategy and the bottom line. In terms of growth, premiums are growing around 1%. The US dollar is relevant for this business, and premiums will be up over 6% at cost and exchange rates. Additionally, reserve for informants has been around 165 million year-to-date, with a five-point impact on the combined ratio, which means the ratio will have been below 90% without this one-off. MAUDI continues to contribute positively with a net result of 3 million. Lastly, I would like to address a few specific items. First, hyperinflation adjustment has improved from around 47 million last year to 24 million this year, mainly due to Argentina and Turkey. And second, the impact of 79 million were recorded in the holding expense line, of which 38 million correspond to the partial goodwill write-down in Mexico, and the rest to the recognition of deferred taxes in Italy and Germany, with 31 and 9 million respectively. As a reminder, in September 2024, there was the partial goodwill write-down in Berlin, Germany for 90 million, as well as extraordinary income of 35 million from various tax adjustments. General P&C lines continue benefiting from technical discipline, strong market positions, and diversification. Premiums are slightly down, affected by currencies. The combined ratio remains excellent, below 81%. In Iberia, premiums increased by 7%, with improvements in key segments, especially commercial lines. The combined ratio stands at an excellent 94%, thanks to diversification and a prudent underwriting approach, as well as comprehensive free insurance protection. In Brazil, premiums declined 10% in euros, while the drop in local currency was just 1%. Agroinsurance is still affected by high interest rates, as well as the geopolitical and macroeconomic situation, while other retail and industrial lands are experiencing notable growth. The combined ratio has improved to 63%, supported by agro, which remains in the low 50s with a lack of relevant events, as well as a strong performance in other retail lines. North America, premiums are impacted by the dollar depreciation, while the combined ratio has improved to points to 83% during a traditionally quiet quarter weather-wise. Regarding MOTO, the third quarter confirms previous trends, with significant advance in most markets. The combined ratio is now below 100%, with around a 5-point improvement year-on-year. The net result is almost 96 million compared to 17 million in losses last year. In Iberia, the combined ratio has improved over six points, reaching 98.5%. And we expect to see further improvements. Premiums are growing 3% and reflect average premium growth of over 7%, almost a point higher than the market. The result has grown by over 80 million, reaching 52 million compared to losses last year. In Brazil, premiums are down mainly due to the currency depreciation. The combined ratio remains stable in line with higher interest rates. Performance has been outstanding in North America with a 52 million euro profit, almost double compared to last year, with the combined ratio down more than three points. Regarding other regions, in other LATAM, almost all units are now reporting combined ratios below 100%. In EMEA, the combined ratio is also down eight points from around 120 to 112%. In conclusion, technical management remains solid and the measures implemented continue paying off. Regarding the live business, premiums are up almost 10% with strong trends in Iberia and other Latin, especially Mexico. Furthermore, the live business is very profitable, adding 180 million to the result. In Iberia, total premiums are growing 20% due to strong performance in savings products. Excluding special transactions, growth in Iberia will be around 17%. This very strong underlying performance is supported by our extraordinary distribution capacity, adapting to the individual needs of our clients. The protection business is growing in line with previous trends. The net result was 92 million down year on year. About half of the decrease is explained by lower financial gains. In Brazil, premiums are 14% lower, impacted by the currency, as well the high interest rate environment, which affect lending and related life protection product demand. Profitability remains strong, with a combined ratio of 82%, down two points year-on-year. Regarding the rest of the countries, volumes were up almost 16%, led by all the LATAM, in particular Mexico. Performance in both Mexico and Malta has been noteworthy, growing more than 40% and 10% respectively. Now, I will hand over to Felipe to discuss the main balance sheet items.