Mapfre Sa Unsp/Adr

Good morning and welcome to MOTFRE's activity update for the third quarter of 2026. This is Leandra Clark, Head of Investor Relations and Capital Markets. Thank you very much for joining us this morning. We are pleased to have with us José Manuel Inchausti, Vice Chairman of MOTFRE, who will open the presentation with some remarks and an overview of recent business trends. He will be followed by José Luis Jiménez, our Group CFO, who will review the main financial highlights, and Felipe Navarro, Deputy General Manager of the Finance Area, who 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 9. You may submit your 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 now hand the floor over to José Manuel Inchausti.

Thank you, Leandra. Good morning, everyone, and thank you for joining us today. We are pleased to report that MAFRE has delivered solid results for the first nine months of the year. Net profit reached 924 million euros, reflecting excellent performance across our core markets. Iberia and MAFRE RE were important contributors to earnings growth, while North America and Brazil also reported higher profit. This is supported by a diversified and resilient business model as well as technical discipline. MAFRE continues to benefit from a robust capital position, which was recently recognized by our main rating agencies. We have a solid balance sheet, a high-quality investment portfolio, and a prudent approach to reserving. These give us the flexibility to keep investing in the business while maintaining a conservative approach to capital and risk. We also remain strongly committed to shareholder value creation. I am happy to announce that the Board of Directors has approved an over 14% increase in the interim dividend to 8 cents per share, marking the sixth consecutive increase in the last three years. The total paid during 2026 will reach 19 cents per share, up over 15%. Our resilience in a challenging market environment is allowing us to continue to move forward with our strategic growth priorities. The acquisition of safety insurance, which continues to progress as planned, will further strengthen our presence in the United States and enhance our long-term growth prospects in this strategically important market. Following the completion of the antitrust review process, the remaining key milestones are the extraordinary shareholders' meeting of safety, scheduled for November 3, and the approvals from the Massachusetts regulator. I would now like to spend a few minutes on the key figures, which show that we are well positioned to meet the updated profitability targets announced at the March AGM. As we have commented during the year, the growth target is more challenging, but premiums are still up over 2% with positive tailwinds from currencies. The non-life combined ratio stands at 93.5%, within our target range of 93 to 94%. This is an excellent level, keeping in mind that there has been higher frequency of weather-related and nut-cut events during the year. The most relevant was the earthquake in Colombia in August. The net result is up close to 12%, reaching 924 million euros and the ROE stands at just under 13. We maintain a strong solvency ratio of nearly 209% as of June, above the midpoint of our target range. I will now hand over to José Luís who will walk you through the details of the third quarter.

Thank you, Jose Manuel, and good morning, everyone. Let me now turn to the main highlights of the profits and loss account, now focusing on local GAAP. Starting with non-life, premium reached 17.5 billion euros, up 1%. The combined ratio remains strong at 93.5%, despite the 83 million net impact of the earthquake in Colombia, which affected both the local insurance entity as well as MAPFERRI, but remaining within the group's large loss budget. There have been a few other large events during the year, including the storms in Portugal and Spain in February and the Venezuelan earthquake in June. The technical result reached 870 million euros, down 8.8%, more than compensated by financial income, which increased over 210 million, supported by high portfolio yields and active portfolio management. We have been adjusting the risk profile of our portfolios due to the current market situation, especially this quarter. And gross realized gains amounted to 170 million at September, over 90 million more than in 2025. The non-live business result reached 1.6 billion euros, up over 8.3%. Turning now to the life business, premiums reached 5.3 billion, growing 5%. Life savings grew despite a demanding comparison due to the issuance of significant corporate policies in Iberia in 2025. Excluding this, life premiums are up 12.6%. Life protection continues growing, especially in Mexico and other Latin, with a combined ratio under 88%. Gross realized gains reached close to 30 million euros, up 40 million year-on-year. The result of the live business reached 532 million, up 7%. Other business activities may include holding company items and financing expenses, which have increased due to early refinancing in January and June, in anticipation of rising yields. Hyperinflation adjustments are up 10 million euros compared to last year, mainly due to a higher adjustment in Turkey. Let me now take you through the performance of the different regions and business units. Overall, Iberia delivered solid performance. The net result reached 430 million euros, up 19%. Total premiums are up 1%. However, this comparison is distorted due to the large corporate policies issued in 2025 in life and non-life. Excluding this, total premiums are up nearly 7%. Non-life premium growth is supported by accident and health as well as motor. General P&C premiums were down 2%, affected by non-recurring transport issuance in 2025. Excluding this, premiums will be up over 2%. Life premiums are growing around 18%, excluding large corporate policies, with solid trend both in savings as well as life protection. The live result was impacted by an uptick in the combined ratio, although still at very strong levels, as well as a one-off tax adjustment of close to 11 million euros. The non-live combined ratio improved almost two points to around 94%, and the return on equity is now 15.6%. In motor, earnings have doubled year-on-year to 100 million, while the combined ratio is down 2.5 points to 96%. During the year, we have maintained a prudent approach to reserving as we carefully monitor inflation trends. Increasing reserve during the year, especially in the third quarter. This total increase in reserve had between a two and a three points impact on the claim ratio at nine months. Premiums are up close to 1%, supported by a 3% increase in the average premium. The Beagle fleet is down only 1.2 points year-to-date, reflecting a somewhat improved trend thanks to selective profile-based tariff adjustments. The accident and health business is also delivering with a noteworthy combined ratio around 96%. In general, P&C, the combined ratio improved by close to three points despite the several weather-related events during the year. The financial result is supported by high portfolio yields and active portfolio management. Net realized gains amount to 52 million, over 20 million more than in 2025. Brazil continues to be an excellent contributor to profitability. The net result reached €203 million, up 2%, and the return on equity stood at an excellent 24%. Premiums surpassed €3.3 billion, up 1%. The currency continued to be a tailwind, up 5.5 year-on-year at September. Growth at cost and exchange rate is down 4%, with high interest rates still impacting credit-linked insurance, mainly agro and life protection, while other general PNC lines are contributing positively to growth. The combined ratio stands at 76%, up 3.6 points, affected by the adverse weather seen in the south-central region of the country during September. Thank you very much. Ode La Tam is reporting solid growth, with premiums up close to 8% to 4.5 billion euros, supported by strong life and accident health volumes. The property business continues to be affected by lower insurance rates, as well as the impact of exchange rate movements, as most of its policies are denominated in US dollar. The combined ratio stood at 101%, up 5 points, driven by general P&C and motor, affected by highway frequency of weather-related and CAD events. The most relevant was the earthquake in Colombia in August. There were also several smaller events across the region. This is part of the normal volatility of our diversified portfolio. In Mexico, premiums are up 13%, with life growing 15% and accidental health growing close to 40%. The results stand at just under 20 million. The combined ratio experienced an uptick of 5.8 points, pressured by the increase in claimed costs due to the change of the VAT treatment for insurance companies, which will continue to be offset by tariff adjustments. In Peru, premiums reached almost 700 million euros with a net result of 42 million euros, both growing at nearly 9% boosted by life, health and accident. In Colombia, premiums are down 2.6% to 414 million. The combined ratio rose by 20.7 points to 110.8%, due to an overall increase in claims experience, especially motor, as well as the impact from the earthquake, which had a net impact of 7.5 million. The losses in the country amounted to 10.8 million euros. North America has reported a record net result of 112 million, up over 12% year-on-year. This is the first time North America has exceeded the 100 million mark at September. This result reflects the strength of our U.S. operation, where we had a plus 24% increase in net profit. Premiums declined by 4%, partly affected by the depreciation of the U.S. dollar. In local currency, premiums were down just 0.7%. In the U.S., premiums are up around 2% in dollars, and we have gained some market share. In Puerto Rico, premiums were down, reflecting market conditions and no renewal of some large policies. The vehicle fleet is showing signs of recovery, reaching over 1.2 million vehicles, up 0.5 year-to-date. The combined ratio continued to improve, decreasing by 0.8 percentage points to 94.9%. In motor, the combined ratio improved by 1.3 percentage points to 96.3%, while general P&C stood at 86.9%, which is up close to 4 points but still at a very good level. Mafra Re includes both reinsurance and global risk. Premiums reached 6.3 billion euros. Slightly down, both businesses continue to be affected by the reduction in market rates. The combined ratio stands at 95.3%, up 1.5 points. The estimated net impact of the earthquake in Colombia is 75 million euros. Other relevant events during the year were the storms in Portugal and Spain last February, as well as the earthquake in Venezuela in June. Reserve remained in the upper end of the confident interval, representing a 1.5 point impact on the accumulated combined ratio. No changes have been made to this reserve during the quarter, and we will review the reserving situation in the fourth quarter after seeing the development of NatCat events and secondary parries. The non-live financial result was up 68%, supported by solid investment yields and high net realized gains of 50 million, compared with net realized losses of 4 million in 2025. In EMEA, growth is mainly supported by Malta's live business, but the other markets are growing as well, offsetting the 12% currency depreciation in Turkey. Results and the combined ratio continue to be impacted by reserve strengthening in Italy, leading to a 2.4 million loss for the region, although we are seeing a strong turnaround in Germany, where the combined ratio remains below 100%. In Kentucky, the business remains conditioned by hyperinflation adjustment and a higher claims experience. Financial income continues to benefit from high interest rates in the country. I will now hand the floor over to Felipe to discuss the Group's balance sheet and capital-related topics.