Mapfre Sa Unsp/Adr

Good morning and welcome to Mottray's activity update for the first quarter of 2026. This is Leandra Clark, Head of Investor Relations and Capital Markets. Thank you very much for joining us. We are pleased to have with us Jose Manuel Enchausti, Vice President of Mottray, who will open the presentation with some remarks and an overview of recent business trends. He will be followed by Jose Luis Jimenez, our Group CFO, who will review the main financial highlights. and Felipe Navarro, Deputy General Manager of the Finance Area, will walk you through the balance sheet as well as the 2025 embedded value figures, which were also released this morning on our website. Before we go into the details, I would like to mention that we have adapted the format of this presentation to reflect your feedback on disclosure. We are aware that many analysts are modeling our business on a regional rather than segment approach. and we have adapted the presentation accordingly. We hope this updated format better meets your needs, and as always, we are open to any further feedback. As a reminder, Mott Prairie reports its IFRS financial information on a half-year basis. The information included in this activity update has been prepared under the accounting policies applicable in each country, which generally do not apply IFRS 17 and 9. Finally, as a reminder, you can 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. And with that, I will now hand the floor over to Jose Manuel Enchausti.

Thank you, Leandra. Good morning, everyone, and thank you for joining us today. Let me begin by highlighting the strength of MAFRA results this quarter. with a net profit of 311 million, an excellent performance in most of our core markets. This, once again, demonstrates the capacity of our business model to deliver solid results, even in a complex and demanding market. From a macroeconomic perspective, the current global environment is one of moderate growth. with an orderly slowdown in developed economies and greater resilience in many emerging markets. After a period of gradually normalizing inflation, this trend has reversed in recent weeks. And as you are aware, geopolitical uncertainty remains very high. In addition to this challenging macro and geopolitical backdrop, we are now facing increased competition and pricing pressure in some markets. Our highly diversified business model, both geographically and by business lines, allow us to continue growing in a balanced and sustainable manner. This diversification is once again proving to be a key strength, especially in times of uncertainty. A good example of this is Latin America, a strategic region where MAFRE is the leading multinational insurance group. We believe the region is less exposed to the direct economic consequences of the current geopolitical context. And during the quarter, LATAM as a whole continued to perform positively, providing stability to results. Another relevant factor this quarter has been the evolution of currencies. After several years with a very negative impact, this headwind is starting to moderate. The US dollar is recovering this year and this should feed through into our accounts in the coming quarters. From a technical perspective, results were clearly supported by the motor business. which continues to consolidate the improvements achieved in recent quarters as reflected in the non-life combined ratio. Finally, I would also like to highlight the excellent performance of Manfred Rie. Profit grew once again during the quarter, supported by the absence of significant catastrophic events, while continuing to provide stability and diversification to the group, underpinned by prudent management and strength reserves. Now, I would 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 AGM in March. Premiums are still seeing an impact from currencies, but to a lesser extent than prior years. is relatively flat at constant exchange rates, confirming that the underlying business is strong and that we will be able to return to growth. As a reminder, the growth target is a three-year average of premium growth of 6%, excluding light savings at constant exchange rates. What's more, our profitability continues improving. The non-life combined ratio stands at an excellent 93.2%, down nearly one point, and at the lower end of the updated target range, 93 to 94%. Performance is consistent with our focus on profitable growth. The net result of 311 million euros is nearly 13% higher than the previous year with the ROE reaching 12.9%, 13.8% excluding extraordinaries, which put us well on track to achieve our 13% ROE target for the last year of the strategic plan. Our solid balance sheet and stable financial position are evident in our solvency ratio, 205% at December, above the midpoint of our target range. I will now hand the floor over to Jose Luis to walk us through the details of the quarter.

Let me walk you through the main highlights of the profit and loss account. Starting with non-life, premiums continue to be affected by currency movements, particularly the US dollar. Beyond North America, this has also had a relevant impact on mafiori and on some Latin American businesses, where property portfolios are often dollar-denominated. In euros, non-life premiums are down 2.6%, reaching over 6.6 billion, while at cost and exchange rates, they are broadly flat. The non-life technical result increased by 16.6%, supported by prudent technical management and the absence of large catastrophic events. The low ratio is down 1.7 points, driven by better risk selection and effective claims management, which more than offset the slight uptick in the spend ratio. Non-life net financial income increased by around 30 million, supported by high portfolio yields and an increase in realized gains, as we reduced the risk exposure of our portfolios at the beginning of the year. Gross realized gains amounted to 38 million this quarter, almost 19 million more than last year. Starting now to the live business, premiums were broadly stable at 1.8 billion, down 0.6% in euros. Life protection continues to show solid growth, especially in Iberia and Latin America, with a combined ratio below 86%. Growth-realized gains were up around 4 million year-on-year. Regarding all the business activities, which mainly include holding company items, results were affected by a 5 million increase in debt expenses, as well as a size and some timing difference in other holdings' company costs. The higher interest rate, the higher interest expenses is following the early refinancing of 1 billion in January to replace the senior bond maturing in May. Finally, hyperinflation adjustments were relatively stable year on year at 16 million. We continue to deliver strong earning growth driven by improved underwriting performance, disciplined costs and risk control and active investment portfolio management. Now I will spend some time walking through the different regions and business units. Overall, Iberia delivered solid performance during the quarter, driven by technical improvements and a well-diversified business model. Net profit reached almost 138 million, up 14%. Today, premiums remain stable year on year. Life premiums are down, while non-life premium growth is supported by motor and accident and health. The combined ratio improved by 1.5 points, reaching around 94%, and the return on equity is now close to 14%. Motor continues to improve, and earnings have more than doubled year-on-year to 46 million, while the combined ratio has improved almost 6 points to 92.5%. Premiums are up over 2%, supported by a rise in the average premium of around 6%, slightly above the 5% market increase. The vehicle fleet is only slightly down year-to-date, showing clear signs of stabilization. And in addition, we are increasing the number of clients, particularly in health and homeowners. We have also achieved a new milestone reaching 200,000 clients through our agreement with Banco Santander. The accident and health business is also delivering solid performance with a noteworthy combined ratio of 88.7%, an improvement of 1.7 points. This reflects not only favorable claims experience during the quarter, but also the benefit of portfolio pruning. In general TNC, premiums declined by 3.9%, mainly due to extraordinary insurance in the transport line in the first quarter of 2025. The combined ratio increased by just over 4 points to 101%, reflecting the impact of the storms affecting homeowners and condominiums, which were not covered by the consortium in many cases. We expect the impact of the combined ratio to taper off in the coming quarters. Turning to the live business, premiums were down 5%, reflecting lower activity and savings compared to last year, due to the timing of product maturities. Life protection is growing nearly 6%, with an excellent combined ratio of 65%. Regarding financial income, realized gains are in line with the previous year, but with a higher contribution from live compared to non-live. Brazil remains a key driver of profitability. Net profit reached 65 million, up nearly 6%, and the return on equity remains well over 26%, with improved technical ratios and strong investment returns. The non-lab combined ratio is outstanding at 75%. In euros, premiums are down 0.2%, as growth is conditioned by the high interest rates, which are affecting credit-linked insurance products, mainly agro and life protection. The currency is now a tailwind. Other general P&C lines, both in retail and industrial clients, are contributing positively to growth. The combined ratio was stable at 68%, supported by agro, which remains below 60%, very much in line with previous quarters. The auto combined ratio has also improved slightly. Regarding the life business, premiums are down 3% and earnings remain stable year on year, with a protection combined ratio of 84%. In other terms, premiums are growing 4%, driven by life as well as accidental health, which are set lower in swing in the property line, which has many dollar-denominated policies. The Mexican and the Colombian peso appreciation also contributed positively, up 5% and 1% respectively. The combined ratio stands at 96.7%, up 1.5 points, driven by motor and accident health. The life business is growing with strong contributions from Mexico, Peru, and Colombia, with a 16 million net result. In Mexico, premiums are over 16%, with life growing 19%. Accident health is up 38%, supported by BAT. and related tariff increases. The combined ratio is 96.4% with a net result close to 12 million. In Peru, premiums are down 1.7% due to currency depreciation while the net result has improved 24% to 15 million. In Colombia, premiums are up over 4% while the combined ratio is up 5 points, but remains at an excellent level of 89.9%. North America continues to show solid performance and improved technical profitability. Premiums are down just over 10% in euros, mainly due to the US dollar depreciation. The bagel feed is stabilizing, with policy growth is moving faster than expected. The combined ratio continues to improve, down 2.4 points to 95%, with general PNC at an outstanding 89%, despite winter weather impacts. Results are up to over 30 million euros. Buffer REIT includes reinsurance and global REITs, and both are affected by market softening as well as the US dollar. Global REITs premiums are down 13%, affected by the large policy issue last year, and reinsurance is down 6%, 4.5% at cost and exchange rates. The combined ratio improved to 96.8% in the absence of significant claims in the first quarter, with the exception of the storms in southern Europe. Additionally, there was a five-point impact from the serving prudence, remaining in the upper end of our confidence interval. The global risk business also improved its combined ratio to around 89%. The non-life financial result is up 36 million, supported by solid investment yields and the realization of 32 million in gross gains, 26 million more than last year. EMEA is reporting its fourth consecutive quarter of profit, reaching 2 million euros, with a strong turnaround in Germany, now in positive territory. The non-life combined ratio is down two points, driven mainly by Motto. while general P&C was affected by the floods in southern Turkey. Furthermore, in Turkey, the business remained conditioned by hyperinflation adjustments, although in line with the previous years, as well as 20% leader depreciation. Financial income continues to benefit from high interest rates. Finally, MAUDI is contributing positively to the group. With operating revenue growing over 7%, we are also seeing a continuous improvement in profitability. I will now hand the floor over to Felipe to work us through the balance sheet and capital-related topics.