Mapfre Sa Unsp/Adr

Good morning and welcome to Marfa's full year 2025 activity update. This is Felipe Navarro, Deputy General Manager of the Finance Area. We are pleased to have here with us Antonio Huertas, the Group Executive Chairman. He will make a few opening remarks and will give an overview of business trends and developments. Following to that, José Luis Jiménez, the Group CFO, will give us a brief overview of the IFRS figures and will discuss the main financials under local accounting. I will walk you through the balance sheet and capital-related topics. Before we begin, just a few reminders. Interpretation services are available both here and online, so feel free to choose a language you prefer, either English or Spanish. At the end of the presentation, we will open up the Q&A. Questions can be made in either language. I will now hand the floor over to Antonio Huertas.

Thank you, Felipe. Hello everyone and thank you for your time today, both of you here in person or those connected online. Firstly, I must express the Board of Directors' satisfaction with the results we have just presented. As you have seen, 2025 was an excellent year for MAFRE. It was a year in which we exceeded our main business targets with significant improvements in our main technical ratios, as well as achieving significant strategic advances. In terms of net attributable profits, we had another record year with 1.08 billion euros, representing an increase of almost 20%. we must remember that gross profit exceeded 2.4 billion euros also representing spectacular improvement of 20 percent premiums also reached an all-time high exceeding 29 billion euros also up 20 percent and we cannot forget to mention that total income including financial income exceeded 34 billion euros for the first time. We have once again outperformed all the financial targets that we presented in the last AGM, despite the fact that the international economic environment has affected our growth in euros. In this context, change rate depreciations have negatively impacted our business volumes, especially those currencies that have the greatest weight in our accounts, such as the Brazilian Real, the US Dollar, the Turkish Lira, and other Latin American currencies. Premium grew by 3.6% in Euros, But at constant exchange rates, this figure was more than doable, reaching almost 8%. Snowlife, which is three quarters of our business, continues to benefit from technical improvements, growing 6% at constant exchange rates, or 1.5% in euros to over €22 billion. Life business is also up nearly 50% at constant exchange rates, almost 12% in euros, at over 6.6 billion. The non-life combined ratio now stands at an excellent 92.2%, representing a decrease of more than two points. This is the best combined ratio our group has achieved in the last 15 years. The technical improvement has been impressive, with all geographical areas and all businesses showing a significant reduction in their combined ratio. Particularly notable is the Sharpe reduction decline ratio to 65%. ROE stands at a healthy 12.4%, excluding non-cash one-offs in the third quarter, Profit would have exceeded 1.1 billion euros and ROE would have been over 30%. Our capital base remains strong despite market volatility with shareholder's equity to up over 5% during the year. Just shy of 9 billion euros and the solvency ratio was 210% at the end of September. These excellent results have enabled us to propose a final dividend of 11 cents per share, fulfilling our commitment for another year to pay out at least 50% of our profits. Next, the following slide allow me to comment on the key data from our most relevant activities which shows excellent underlying trends. Starting with insurance operations in the different regions, Iberia has delivered an excellent technical and commercial performance and has once again achieved outstanding results, thanks to a solid and well-diversified business. Net profit was 450 million euros, up 23%, with significant contributions from both live and non-live businesses. Technical management continues to improve in all areas. The motor business has experienced a clear change in trend, once again becoming a significant contributor to the result, with a result up over 100 million and a combined ratio that has fallen by almost 7 points to 98.5%. General non-life and accident and health businesses are also solid, with both combined ratios around 94%. Latam also showed solid underlying results, with a net profit of €365 billion. The combined ratio stands at 84.6%, with most countries well below 100%. Brazil remains a key driver of profitability, supported by high financial income and solid technical margins. Net profit reached a record level of around 270 million euros, an increase of 5%. North America also posted record results of nearly 140 million euros, up 42%. The operational improvements implemented in recent years have paid off and combined ratios in the US are now the best ever. Finally, Maferri recorded a profit of €381 million, up 17%, with a combined ratio of 91.2%, indicating that both reinsurance and global risk has performed excellently with historic results. This has not been a particularly intense year in terms of major catastrophes, but the frequency of weather events is not decreasing globally and the increase of secondary barriers in the industry is significant. In our case, our technical rigor in underwriting and risk selection, our diversified business model and appropriate retrocession program have helped us to achieve these magnificent results. In addition, reserves remain close to the upper end of our confidence interval. We are extremely satisfied with this year's historic results, and the Board of Directors has proposed a final dividend of 11 cents, representing a 15.8% increase to be approved at the AGM on March 13th. This is the highest dividend paid ever and the fifth consecutive increase in three years, bringing the total dividend against 2025 to $0.1818, up 12.5%. Total dividends reached $454 million, with a payout of 51.4%. The average dividend yield for 2025 was 4.6%. The average dividend yield for 20... Okay, I already said. Over the last five years, MAFRE has paid out 2.3 billion euros to its shareholders, fully in cash. Now, I will now hand the floor over to José Luis.

Thank you, Antonio. Before moving into the details of the local figures, I would like to briefly comment on the main KPIs under IFRS compared to local GAAP, which are very aligned. Insurance revenue, which reached a little over 26 billion, is up over 3%. At cost and exchange rates, growth is 7.6%. The net result stands at 1,133 million under IFRS, 54 million higher than local GAAP. RFS 17 had a 43 million positive impact. The impact of discounting and the risk margin offset a negative impact from the lost company, which mainly affected the live business in Colombia during the year. RFS 9 had a positive 11 million impact. The positive impact of mutual fund valuation book in P&L offset the realized gains on equity recorded under RCI. The holders' equity amounts to €9.4 billion, and return on equity was 12.4%, with similar trends under local GAAP. The gross CCM was €2.6 billion, up almost 4%, and was €1.6 billion after taxes and minorities, mainly from the contribution of new business. The 90% combined ratio under IFRS is below the local figure, mainly due to the discount factor we had at 1.4 point impact. I will now discuss the key trends by region. In Iberia, total premiums are growing over 10%, with solid momentum across most business lines. Non-life is up 5%, while life has increased over 23%, supported by remarkable performance in savings. The combined ratio has improved, more than 3 points, reaching 95.8%. The return on equity is now over 2 points, to 13.6%. Profitability in LATAM has been excellent, with a return on equity of nearly 16%, despite some one-off and currency depreciations. Brazil reached a record high result, posting a return on equity of close 28%, with improved technical ratios and strong investment returns. The non-life combined ratio remains outstanding, at 72%. In Euros, premiums are down 10% with almost 7-point drag from exchange rates. The decline reflects a slowdown in lending-linked products due to higher interest rates. In the rest of LATAM, premiums are over 5% in Euros, with strong local currency growth in key markets like Mexico, Colombia and Peru. The combined ratio has improved in most countries, standing at 98.8% for the region. The net result was $97 million with two relevant negative impacts. $37 million in Mexico from the change to VAT treatment for insurance companies and $57 million in Colombia due to the 23 minimum wage increase, mainly affecting annuities reference to inflation. Overall, trends across the region are still strong and we are confident that the region will continue to prove resilient. as we have been successfully operating in these markets for years. In North America, premiums are down over 4% in euros due to the US dollar depreciation. In a record profit year, the combined ratio is down to 95.4%, improving three points. In EMEA, losses in Germany and Italy are down. The region is reporting its third consecutive quarter of positive numbers with a 60 million profit. compared to 30 million in losses last year, with an 8-point reduction in the combined ratio. Regarding Bafubri, in terms of growth, premiums are in line with last year. The non-group reinsured on business around 40% at constant exchange rates. In terms of profitability, it has been a good year after a very quiet hurricane season. There was a partial release of reserves in the fourth quarter. Some of this prudence was applied to claims on a K by K basis. The combined ratio includes around 2.5 points of total addition reserve prudence at the end. There has also been a one-off tax impact for around 45 million in the fourth quarter due to a prudent approach related to doubling position in some Latin American countries. MAUDI continues to contribute positively with a net result of nearly 6 million. Finally, I would like to comment that the net hyperinflation adjustments are down from 60 million last year to 31 million, mainly from the case of Argentina. General PSE lines continue to benefit from disciplined technical management, solid market presence, and diversification. Premiums are down, affected by the Brazilian real and the US dollar. The combined ratio remains excellent at 80%. In Iberia, premiums are up 7%, with a strong performance in key segments, with commercial lines growing 10%. The combined ratio stands at 94%, thanks to diversification, a prudent underwriting approach, and comprehensive insurance protection. In Brazil, premiums declined 8.5% in euros, mainly due to the currency depreciation. Furthermore, agricultural insurance remains affected by high interest rates. while other retail and industrial lines are experiencing notable growth. The combined ratio was stable at 63%, supported by agro. In North America, premiums are impacted by dollar depreciation, while the combined ratio has improved more than 5 points to 79%, supported by pre-year tariff increases, as well as lower weather-related claims. Regarding MOTO, the fourth quarter result confirms the positive trends with significant advance in profitability in most markets. The combined ratio is below 100%, with a 5-point improvement year-on-year. In Iberia, the combined ratio was 98.5%, improving 7 points. Premiums are growing 3%, with average premium up 7.5 compared to the market at 6%. In Brazil, premiums are down mainly due to the currency depreciation. the combined ratio remains stable in line with higher interest rates. In North America, premiums also declined due to weaker currency. Profit amounts to 72 million, up more than 80% with the combined ratio down more than 3 points. Regarding other regions, in other LATAM, almost all units reported combined ratios below 100%. In EMEA, the combined ratio is also down 11 points from 122 to 111, driven by an over 20-point reduction in Germany. In conclusion, technical management remains strong, with measures continued to deliver. On the live business, premiums are up 12%, with strong trends in Iberia and New Latam. The live business continued to be very profitable, adding almost 200 million to the group results. In Iberia, premiums are growing 24% due to a strong performance in savings. The protection business is up over 4% in line with previous trends. The net result was 132 million, down year on year, largely driven by lower financial gains. In Brazil, premiums are down 30%. impacted by the currency as well as the high interest rates environment, which affect lending and related life protection products demand. Earnings remained strong, up 5%, with a combined ratio of 82%, down 2 points year-on-year. Regarding other markets, volumes were up 80%, laid by Odelatan, with noteworthy performance in Mexico, growing 40%. The loss in order largely reflects the increase in the minimum wage in Colombia. And now I will hand the floor over to Philippe to discuss the main balance of the items.