Mapfre Aktie

Good morning, and welcome to MAPFRE's activity update for the first half of 2026. This is Felipe Navarro, Deputy General Manager of the finance area. Thank you very much for joining us. First of all, I would like to apologize for releasing results earlier than expected. We have to wait for the closing of the Nasdaq. We are pleased to have with us Antonio Huertas, Group Executive Chairman, who will open the presentation with some remarks on the recently announced acquisition, as well as an overview of recent trends. He will be followed by Jose Luis Jiménez, our Group CFO, who will give us a brief overview of IFRS figures, which we will report to the CNMV on a half-year basis, and will discuss the main financials under local accounting. Jaime Tamayo, the CEO of North America, will discuss the details of Safety acquisition.

I will walk you through the balance sheet and solvency data. You may 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. I will hand the floor over to Antonio.

Thank you, Felipe. Good morning, everyone. Thank you for joining us today. We are pleased to report that MAPFRE has delivered a solid performance with clear growth in profitability for the first half of 2026. Net profit reached EUR 624 million, reflecting excellent performance across our core markets. Iberia and MAPFRE Re were important contributors to earnings growth, while North America and Brazil also reported higher profit. This performance is supported by a diversified and resilient business model, as well as by the technical discipline reflected in our underwriting, pricing, and reserving decisions. At the same time, MAPFRE maintains a position of financial strength. We continue to benefit from strong solvency, a growing equity base, and a prudent approach to reserving. This gives us the flexibility to keep investing in the business while maintaining a conservative approach to capital and risk.

In that context, I am proud to announce the acquisition of Safety Insurance, which is fully aligned with our strategic objectives. The transaction strengthens our leadership in Massachusetts and in several states in the attractive Northeast region, increasing our exposure to mature and stable markets, and supports our growth objectives in businesses that we already know well and where we have been operating for decades. Furthermore, it is expected to be accretive and cash-generating for year one, and to increase the group's net income by over 5% once fully integrated. The funding of the deal will optimize our capital structure, creating significant value for shareholders. Jaime Tamayo, our North America CEO, will provide further more details later on.

With Safety reinforcing our strategic direction, I would now like to spend a few minutes on the key figures, which show that MAPFRE is on track to meet the updated targets announced at the March AGM. Premiums are up over 1%, and I would like to highlight that the currency effect is beginning to turn positive. What is more, our profitability continues to improve. The non-life combined ratio stands at an excellent 92.8%, down both year-on-year and quarter-on-quarter, and even below our updated target range of 93% to 94%. The net result is up over 9% and the adjusted ROE is well over 13%, which puts us firmly on track to achieve our target for the final year of the strategic plan. We maintain a strong solvency ratio of 206.8% as of March, above the midpoint of our target range.

I will now hand over to Jose Luis, who will walk you through the details of the first half.

Thank you, Antonio. Before we move on to the local figures, I would like to briefly comment on the main IFRS KPIs, which are very aligned to local GAAP. Insurance revenue stands at almost EUR 14 billion, up around 4%. The net result amounts to EUR 646 million under IFRS, exceeding local GAAP by EUR 22 million. IFRS 17 had a positive impact of EUR 17 million, this counting offset a negative impact from the risk margin and loss component and other differences. IFRS 9 had a positive EUR 5 million impact. The positive mutual fund valuation book in P&L offset the realized gains on equity recorded under OCI. Shareholder equity is just over EUR 10 billion and the return on equity is 12.4%, consistent with local GAAP. The gross CSM is broadly unchanged, around EUR 2.6 billion and EUR 1.7 billion after tax and minorities.

The 90.4% combined ratio under IFRS is below the local figure, mainly due to the discount factor, which had around a 2-point impact. Let me now turn to the main highlights of the profits and loss account, now focusing on local GAAP.

Starting with non-life, premiums reach EUR 12.3 billion, up 0.3%. The non-life technical result increases to EUR 648 million, up over 9%, supported by prudent management as well as an absence of relevant events. The combined ratio improved to 92.8%. The improvement is driven by the loss ratio of 65%, down nearly one point, while the expense ratio stands at 27.8%. Non-life net financial income increased over EUR 70 million, supported by high portfolio yield and active portfolio management. Gross realized gains amount to EUR 49 million in the first half of the year, around EUR 50 million more than in 2025. Most of these gains were realized in the first quarter. The results of the non-life business reach EUR 1.1 billion, up over 10%. Turning now to the life business. Premium reached EUR 3.8 billion, growing nearly 4%.

Life savings premiums are down due to a relevant corporate policy in Iberia issued in the second quarter of 2025, which is affecting the year-on-year comparison. Excluding this policy, life premiums will be growing 15.5%. Life protection continues growing, especially in Brazil, Mexico, and Iberia, with a combined ratio under 88%. Gross realized gains reach close to EUR 20 million, up EUR 6 million year-on-year. The results of the life business reach EUR 354 million, up 2%. The results from other business activities, which mainly include holding company items and financing expenses, has improved compared to the previous year. Hyperinflation adjustments are up EUR 8 million 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, driven by technical improvements and a well-diversified business model. Net result reached EUR 279 million, up 17%.

Total premiums remained stable. Non-life premium growth is supported by motor and accident health. General P&C is impacted by extraordinary transport issuance in the first quarter of 2025. Life premiums were lower due to a comparison commented before. Excluding this operation, growth will be 18.8%. The combined ratio is down over 2 points to under 94%, and the return on equity is now close to 15%. In motor earnings has doubled year-on-year to EUR 74 million, while the combined ratio is down around 4 points to under 95%. Although there is a slightly higher frequency compared to the previous quarter. Premiums are up close to 2%, supported by a rise in the average premium of around 4.3%. The vehicle fleet is only slightly down year-to-date, showing clear signs of stabilization. The accident and health business is also delivering solid performance with a noteworthy combined ratio under 94%.

In general P&C, premiums declined by 2%, mainly due to extraordinary issuance in the transport line in the first half of 2025. Excluding this impact, premiums will be up over 1%. Additionally, the combined ratio improved by 2 points despite the impact of the first quarter storms. Brazil continues to be an excellent contributor to profitability. The net result reached EUR 136 million, up 4%, and the return on equity stood at an excellent 25%. Premiums surpassed EUR 2.2 billion, up 4%. After several quarters of depreciation, the real is now a tailwind, up 4.8% year-on-year. Growth at cost and exchange rate is slightly down 0.7%, still impacted by the effect of high interest rates on credit link insurance, mainly agro and life protection.

Other general P&C lines contribute positively to growth, and the combined ratio stands at an excellent 65.7%, supported by agro, which remain below 60%, in line with previous quarters. Regarding the life business, life protection premiums are growing over 4% in EUR, and earnings are up 9% with a combined ratio of around 85%. Other Latam is reporting solid growth with premiums up over 6% to EUR 3.1 billion, supported by the strong life and accident health volumes which offset lower issuance in property, where policies are often dollar-denominated. The combined ratio stood at 99%, up nearly 4 points, driven mainly by motor and accident health, where we are seeing higher claim costs, which will be gradually offset with tariff adjustments. In Mexico, premiums are up over 13%, with life growing 19% and accident health growing 40%. The result is just over EUR 9 million.

In Peru, premiums reach EUR 454 million, up 6.6% with net results of EUR 29.6 million. In Colombia, premiums are down 2% to EUR 275 million, with a net result of EUR 7.2 million. North America continues to show solid performance and improved technical profitability with the net result up 40% to EUR 69 million. The combined ratio continues to improve with general P&C at an outstanding 80.6%. Premiums are down just under 7%, affected by the US dollar depreciation. The vehicle fleet is showing signs of a return to growth, reaching 1.2 million vehicles up 0.3% year-to-date. MAPFRE includes both reinsurance and global risks. Premiums reach EUR 4.3 billion, down 1.5%. Both businesses have been affected by the reduction in market rates, while global risk has also been impacted by currency depreciation, as around 3/4 of policies are dollar denominated. The combined ratio improved to 95.2%, down 0.7 points.

There were no claims with relevant losses during the first half of the year, except for the storms in Portugal and Spain last February. Regarding the earthquake at the end of June in Venezuela, we have made a conservative estimate of an attributable loss of around EUR 25 million, based on currently available information. Reserve remain in the upper end of the confident interval, with a 2-point impact on the June combined ratio, with no additional prudence during the second quarter. The non-life financial result was up 42%, supported by solid investment yields, a higher net realized gains of EUR 26 million compared with EUR 6 million in 2025. In EMEA, growth is supported by Germany and Italy, partially offset by the 12% currency depreciation in Turkey. Results have been impacted by reserve strengthening in Italy, leading to a EUR 4.6 million loss for the region despite the strong turnaround in Germany.

The non-life combined ratio is stable year-over-year, driven mainly by motor, with Germany below 100%. General P&C still reflect the impact of the floods in southern Turkey in the first quarter. In Turkey, the business remain conditioned by hyperinflation adjustments. Financial income continues to benefit from high interest rates.

I will now hand the floor over to Jaime to walk us through the details of the Safety Insurance acquisition.

Thank you, Jose Luis. We have taken a strategically important step for MAPFRE. Safety Insurance is a well-established non-life insurer with a strong profitability track record and a solid presence in the independent agent channel. This strengthens our position in several states in the Northeast, achieving absolute leadership in Massachusetts, where we expect to reach approximately 25% market share in auto and 17% in homeowners. It expands our scale across both retail and commercial lines, giving us a stronger platform for growth across the region. The offer is $105 per Safety share in cash, representing a valuation of over $1.5 billion. We expect the acquisition to be accretive and generate cash as of the first year, with over $30 million of annual cost synergies expected to be delivered within 3 years, which will generate an over 5% uplift to net income for the group.

The proposed financial structure is prudent and aligned with our capital framework and risk appetite. Felipe will go into the details later on. The transaction is expected to close in the first quarter of 2027, subject to the required shareholder and regulatory approvals. Safety has reported profit 44 out of its 45 years of history, with an average 97% combined ratio over the last 10 years. The business has relevant scale and is well capitalized with around $1.3 billion in premiums, total assets around $2.5 billion, and shareholders' equity of $900 million. It brings demonstrated profitability with $99 million of net income in 2025 and a return on equity of 11.5%. Additionally, the franchise has a wide distribution reach, local market knowledge, and a strong operating base to build from, with around 800 agents and nearly 600 employees.

As you can see on the right, the combined U.S. franchise will be materially larger. Premiums for MAPFRE U.S.A. will reach $3.9 billion on a pro forma basis. Net income will go up from $134 million to $233 million before identified synergies and restructuring costs. In addition, total assets will reach $6.8 billion. Safety is well positioned in attractive segments, with Massachusetts representing over 90% of the book and smaller exposures in New Hampshire and Maine. The portfolio is focused on personal and small commercial lines, with private auto representing 55%, commercial auto another 15%, and homeowners 25%. On the left, you can see the pro forma market shares. As a leading non-life insurer in Massachusetts, Safety is #4 in private auto with 9% market share, #1 in commercial auto with a 12% market share, and #3 in homeowners with a 7% market share.

Following the transaction, MAPFRE U.S.A. will reach a combined market share in Massachusetts of 26% in private auto, 22% in commercial auto, and 17% in homeowners, consolidating the #1 position in all 3 lines. This transaction provides a platform to tap to a larger, very profitable opportunity, the Northeast region, which is amongst the top insurance markets in the U.S. in terms of profitability, especially in property. The total market for personal and commercial lines in New England reaches $33 billion, with Massachusetts accounting for nearly half. This is a relevant and affluent region, which will underpin growth in the coming years. In New England, MAPFRE and Safety combined will hold a 13% market share in private auto, consolidating the #2 position and reaching #1 in commercial auto and homeowners with 11% and 8% market shares. We expect material value creation from already identified synergies.

Integration should be manageable with low execution risk. The identified cost synergies are over $30 million run rate per year. These savings come from clearly defined initiatives, including reducing duplicities of shared services, underwriting claims and call centers, facility management, investments, advertising, and delisting, among others. The pro forma MAPFRE U.S.A. expense ratio is expected to go down by around 1 point by year 3. We anticipate around $40 million of one-off restructuring expenses as a result of the integration. There are also important capital benefits. Through the reinsurance redesign, we expect more than EUR 140 million of excess capital while providing stability to the underwriting result over the cycle. In short, this is a transaction with clear strategic and financial rationale. It deepens our presence in a mature and attractive market, strengthens our competitive position, and creates value for all stakeholders, clients, agents, employees, and shareholders.

I will now hand the floor to Felipe to discuss the group's balance sheet and capital related topics, as well as the proposed funding for this transaction.

Thank you, Jaime. Before going into the details of the funding, let me discuss the solid capital position of the group. Shareholders' equity sits at EUR 9.6 billion, increasing 7% during the year. There have been positive contributions from currency conversion differences with the Brazil real and the U.S. dollar appreciating 9% and 3% respectively, as well as from the improved valuation of the investment portfolio. Leverage stands at 21%, roughly in line with December. In June, we successfully repurchased almost 60% of our March 2027 callable Tier 2 bond and issued a new 11 non-call 10 Tier 2 bond at very attractive levels and over 5.5x oversubscribed. There is still around EUR 260 million outstanding on the March 2027 callable bond, which adds around 2 points of leverage due to the early refinancing.

This places us in an excellent position to tap the markets in the second half of the year. Regarding Safety, we expect it to be debt-funded with EUR 700 million in Tier 2, EUR 500 million in senior, and the remainder through bank debt. We have a bridge facility in place to provide certainty and flexibility for us to access the capital markets. With a proposed funding structure, we expect around a 10-point impact on the solvency ratio and around 7-point impact on the leverage. This is in line with our risk appetite, and we do not expect any impact on ratings. Total assets under management stand at over EUR 70 billion, growing over 8% year-to-date. Our investment portfolio amounts to EUR 46.5 billion, reaching EUR 51 billion, including unit link.

Asset allocation has remained stable since the beginning of the year, and alternative investments remain a small share, under 4% of the investment portfolio. Our savings and investment business continue to grow strongly, confirming our aim to remain a benchmark in financial planning, with third-party assets reaching EUR 19 billion. Mutual funds are up 26%, driven by Brazil, with solid growth in Spain as well. I will now focus on our actively managed fixed income portfolios, which are around EUR 20 billion. The remaining EUR 15 billion is allocated to cash flow on duration matched portfolios, minimizing interest rate risk. On the Euro area, yields are stable or slightly up year-to-date, while the duration remains stable or slightly down.

In our other main markets, the decrease in yield in the Brazilian portfolio to 12% is in line with the evolution of the Selic rate, given the large proportion of floating rate notes. Now that the central bank is lowering rates at a slower pace than anticipated, we have taken this opportunity to slightly increase the duration of the portfolio. In North America, there are no material changes in yield and duration. Our portfolios remain well-positioned to navigate the current volatile environment.

I will now hand the floor over to Antonio to make a few closing remarks.

Thank you, Felipe. The acquisition of Safety represents exactly the kind of opportunity we have been looking for, profitable and disciplined growth in markets we know well. It strengthens our competitive position in Massachusetts and across New England, where we are already strong, and it does so through a transaction with a clear strategic and financial rationale.

It also deepens our presence in a mature and attractive market. Most importantly, this deal creates value for all stakeholders, clients, agents, employees, and of course, our shareholders. Financially, the deal is accretive and capital efficient, with clear cost and capital synergies. It also accelerates innovation by combining data sets, technology, distribution, and best practices. Beyond the transaction, our first half results show strong earnings and progress across core markets. Our financial position is solid, with high capital levels and a prudent approach to our balance sheet. We are entering the second half of the year with optimism, but also with prudence given a complex and competitive environment and signs of softening in certain insurance and reinsurance segments. MAPFRE has proven it can navigate market cycles successfully and will remain focused on profitable growth.

We are confident in our operations, in our people, and in our ability to continue creating sustainable value for clients, shareholders, and society as a whole. We are well-positioned as we enter the final stretch of our strategic plan, which is already proving very successful, and we firmly believe that a strengthened position in the U.S. will build on that momentum.

I will now hand the floor back to Felipe for the Q&A session.

Thank you, Antonio. [Operator Instructions] Now let's start with the first set of questions. Juan Pablo from Santander asked about the cost synergies of USD 30 million, that they look low, but do you think that there can be room to do more? There's another question coming from Qian Lu from UBS, asking if we can walk them through the calculation of the 10.5x P/E multiple, and how the capital synergies are accounted for the calculation in particular. Lastly, Paz Ojeda is asking also, she would like to know the margin of improvement of the synergies that we have mentioned already.

Sure. I take it. Thank you for the questions. The synergies we are presenting in our results today are established at $30 million. They are conservative. They are pretty conservative. We expect to achieve a higher level of synergies, but we really need to go through the process of obtaining all the regulatory approvals, get in touch, and more aligned with Safety's management. We do expect those synergies, more than probably, to be higher. Additionally, we are expecting capital synergies as well. Just by looking at Safety's reinsurance structure and compare that with ours, we believe we can achieve at the very least $140 million in excess capital synergies in the Safety operation. I think, again, we do strongly believe that the synergies are conservative.

Okay. Thank you very much. We appreciate that transaction is in line with our stated M&A strategies, Yuri Shikori from Autonomous. The deal is a stage on the P&C. How we find this deal on the P&C cycle across a year? Do you think that the performance of Safety Insurance could look weak, taking into account how much we have paid on this?

Okay, I'll take the first part of the question. Thank you. It's true, the deal is totally in line with our strategy. We have said many times that U.S. is a core market, is an strategic market for MAPFRE, and we were looking for new opportunities to grow in this market. In the past, we decided to stay away from some states where we didn't have enough scale. We have maintained our strategy to grow in this market, principally in the states where we already are doing pretty well, like Massachusetts and other states in New England. The strategy is aligned with the deal. You are right that the moment of P&C could be not the moment, but it is because in the last 3 years, we haven't seen big or large claims from cat events. In terms of cat events, it's a good moment.

Also after the pandemic, we have increased tariffs to adequate its level to the current situation of inflation in the P&C business. In the most of our businesses, we have good combined ratios, and even in the States, in auto and homeowners, we have the best combined ratios we have had ever. It is the right moment to do this acquisition and to try to gain scale in the States.

Yes, Antonio, just building on your comments. We would like to stress the fact that Safety has been posting profit in 44 years of the last 45 years of its performance. The last 10 years, Safety has had an average combined ratio of 97%. Having said this, the last five years, especially the 3 years after the exit of the pandemic from 2020 to 2023, have been very complex and complicated and tough years for the P&C industry in the U.S. The exit of the pandemic proved to be very complex. Inflation, the global disruption of the global supply chains, and all that created a massive inflationary burden on the rates of the insurance carriers in the U.S.

Given the fact that insurers in the U.S. have to go to the regulators to get the rates approved, that exit of the pandemic was kind of, compared to other markets, like the European markets, proven to be a little bit lengthier. At this stage, last year, Safety posted a 99% combined ratio, representing that they were back into the profitability levels from a technical perspective. We do expect that profitability or technical profitability to improve in 2026 and beyond to this actual average that has been pretty sustained for the last 10 years of 97% combined ratio levels. I think just to reiterate the fact that it is a question of the actual cycle after the exit of the pandemic. We do expect Safety to go back to its historical patterns of performance.

I'm going back to one of the questions that we had before about the 10.5x multiple of the company. You have to take into account that first that we have around $1.5 billion cost of the transaction. There will be this capital release related with the reinsurance business that is going to be above EUR 140 million. We need to compare the capital needs of this company with the excess of capital that we have in this company against our present activity in the U.S., and we should calculate this around EUR 200 million. That will compare very well with around EUR 100 million that made that last year, plus the synergies that we have already mentioned. Roughly you will arrive to this calculation of 10.5x, the multiples. We have another question coming from Juan Pablo from Santander about the solvency ratio in Safety.

And after, Max from JB Capital ask about final impact on solvency on MAPFRE Group, and what will be the initial impact at acquisition. If, Jaime, you can drive us through the solvency level of Safety, and I will come back for the calculation for this.

Yes. From Safety's perspective, their solvency ratio, if we were to translate it into our standards from an accounting perspective, would be around 240%. Clearly, very well-capitalized entity. We do expect roughly around $200 million in excess capital. That is not taking into consideration the potential release of EUR 140 million of capital related to the change of its reinsurance structure. We want to be cautious, and we have to go through the regulatory processes at the federal level as well as in Massachusetts. We have to receive feedback from our regulators in terms of what levels of capital we should maintain going forward.

Related to the solvency level, I will tell you that the calculation of the impact of the solvency level is as a pro forma coming from the 2025 impact. This is going to be the biggest impact that we're going to find in this transaction after MAPFRE will continue building on the solvency in the company. This is the acid test on the solvency, the one that we have published. I have a next question about the transaction. We may think that it is, or we are stating that it is within the M&A strategy. The question from Yuri Shikori is that this deal is at a stage in the P&C cycle, and historical financing situation of Safety Insurance. I think that we have already commented on this. Juan Pablo from Santander asks about the deal and capital allocation.

That is more accretive than a share buyback or extraordinary dividend. This is a question of how we manage the capital of the company. It's a very interesting question.

Regarding the deal, as the president has said before, this is quite the strategy for us. We are doing a deal in a region that we know extremely well. The same kind of business that we are actively doing there. The situation of our operation in the U.S. is quite strong. Probably is the best momentum for the company since we are starting in the U.S. long time ago. We tend to believe that this deal is very good for customers, it's good for employees, and it's good for shareholders. It will provide value for the group from the first minute.

Probably this type of capital allocation probably makes more sense than a share buyback or extraordinary dividend. In terms of the share buyback, we have a free float around 30% of the total shares. Probably for us, due to our specific conditions, probably is not the best option to proceed forward. Also in terms of extraordinary dividend, we prefer to continue grow. I think this is the purpose of the company. We would like to be bigger, to continue treating our shareholders in the best way, and increase the dividend to them if the opportunity arises.

I would like to add that this is important in our strategy to think always in a long-term vision. We have to cement our presence in the U.S. where we already have an extraordinary presence in Massachusetts, and we want to increase the scale of our business there to be more competitive and to think about the results from 3 to five years in order to have a sufficient size to compete in this country. We think that it's always important to think about the short-term, but also trying to gain scale, to think about how we can grow more in the next few years. This operation, this transaction, it's focused on this strategy.

Thank you very much, Antonio. There's a question coming from Juan Pablo Santander. "Safety will remain on board?" is the question. If not, there could be a risk to replicate the business.

Thank you for the question. Safety is going to remain on board. We've proceeded since day one, since we started talking with the senior management of Safety. We proceeded in a friendly fashion. Every step of the way in this transaction has been made with the consensus of the senior management of Safety. Our expectation is that the management will continue to be on board, and not just the first year, but the second, third years of management of the company will remain with us definitely.

Thank you very much, Jaime. Paz Ojeda is asking from Banco Sabadell. She's asking about the evolution of the first quarter 2026. This company's been quite weak because of the storms, there's a revision of the rating revised or the outlook from the AM Best. What kind of confidence levels you have on the reserves run off of this company? What's your impression, Jaime?

The first quarter of 2026, in the northeast region, and specifically in Massachusetts, has been impacted by winter weather. Several storms have hit the region. This is pretty normal. The weather cycle is pretty much the same every year with more or less intensity. The difference with our performance, for example, when you look at our performance during the first quarter at MAPFRE U.S.A. level versus Safety, is our reinsurance structure. That's why I was mentioning before that we intend to change the Safety reinsurance structure in order to eliminate the volatility during the winter weather months so that we can produce more stable results. Having said this, on pre-reinsurance levels or on gross levels, we all suffer the same kind of weather impact. Regarding the reserves, we believe that Safety will continue to deliver redundancies on an annual basis.

This has been the historical pattern of Safety for the last, I would say 15 years at the very least. Our expectation is that there will be an average potential redundancy in Safety, consistent redundancy, on an annual basis between EUR 30 million to EUR 40 million per year.

Thank you very much. There are a couple of questions that I think that already been answered. The first one related with the concentration is coming from Nimrat Kaur from Bank of America. The first one is related with this question of the storms and how they're dealing with this, and I think that you already answered it. The second one is related with the release of the previous year development. I think that we can take them as answered. There's a question about the expected return on investment that we are going to have on this company. You have said that we will increase the group net income by 5% in 3 years. If the consensus is expecting EUR 1.3 billion to EUR 1.4 billion, should we expect Safety contribute by EUR 70 million?

We should definitely. EUR 70 million has been the net income produced by Safety at the closing of 2025, EUR 99 million of net income last year. This EUR 99 million was produced with a 99% combined ratio. As I said before, for the last 10 years, Safety has been posting a 97% combined ratio on average. We should expect at the very least, this level of contribution of EUR 70 million on a net basis going forward at the very least.

Thank you very much. There's a very simple one. Could there be restrictions on the coming years through a capital repatriation? Coming from Paz Ojeda, Banco Sabadell.

I don't think so. The good thing about, as you all know, about doing business in the U.S. is that it is extremely predictable. It's a very mature, serious, and predictable market. We know and we understand how to deal with our different regulatory bodies. We do not expect any restriction whatsoever in terms of capital repatriation, as long as it is done with the proper and appropriate approvals from the regulators.

Thank you very much, Jaime. A very last one. This is related as well on the footprint of the company and how the clients are, in this company, different from the ones that we have in MAPFRE. Could you qualitatively describe the key portfolio difference in terms of type of customers between you and Safety Insurance?

Yes. Essentially, the direct answer would be that there is none. The beauty of this operation and this transaction is that Safety's business is exactly pretty much the same business that we are right in. They write private auto, they write homeowners, they write commercial auto, small commercial business. That is exactly what we write in Massachusetts. We do share, out of the 800 agencies that they have appointed, pretty much 90% of those agencies also operate with us. We do know extremely well what they do. It is, as I said before, essentially the same business, the same distribution, and the same quality of customers that we would be adding into the MAPFRE U.S.A. umbrella, as soon as the transaction closes.

Thank you very much, Jaime. We are going to move to the reinsurance business. The Q2 standalone growth was 6%, despite the softening market. Please, could you unpack the drivers of growth and what margins are in this growth achieved, and also on the 94.1 combined ratio on the quarter standalone that was being achieved with a benign nat cat and no additional reserves addition. Would this imply to mid to high 90s clean run rate normalizing for cat business? This is coming from Qian Lu from UBS.

Thank you, Felipe. Regarding the reinsurance business, the property cat pricing, particularly on the GSL treaties, keeps on softening, while the structures are mainly holding. In terms of price softening, we could say around 50%, risk adjusted. It is true as well that we have more capacity being deployed in the market. We have to say that the campaign that had been run by MAPFRE has been quite successful. We continue to focus on diversified lines of business. Overall multi-line approach is preferred by clients and brokers. We have a deep key relationships, which is bearing fruits and consolidation of our position. On the other hand, the structured business is bringing meaningful additional volumes for the business. We have to say that the opening of the new office in New Delhi is contributing quite successfully. We would love to see the combined ratio on those levels.

We have, as well, to point it out that we are just at the beginning of the hurricane season, and we have to be prudent.

Thank you. Thank you very much, Jose Luis. Max from JB Capital is asking about the premiums that were performing well despite the soft market. He's asking, "Are we taking more risk?" I have another one coming from Juan Pablo from Santander, that is asking about the pricing evolution after the renewals and the impact in the combined ratio. I think that they're very much related, both questions.

Yes, sure. Probably coming back to the first question, probably the answer is quite simple. No, we are not assuming more risk. I think we are moving more onto structural products, which they are performing well. It has no big change in our risk appetite as well as our investment portfolio.

Thank you very much. Related with MAPFRE, we mentioned that the reserves are at the upper end of the confidence interval. There were a very relevant reserve strengthening on the past, there wasn't any kind of release during this quarter. Could you also comment on the outcome of the recent treaty and renewals, and the trends that you expect for the second half of this year?

For sure. No release at all. I would say, on the other hand, we suffer the earthquake in Venezuela at the end of June. We prefer to be extremely prudent, and we assume EUR 25 million they will resolve for this. We don't have much information so far. We have to wait. As the weeks and months will pass, we will see if the problem is Venezuela of this size or lower than this. No release at all. Regarding the second part of the question, I think, looking forward, probably we are suffering a little bit of soft market. Also, this is a question that probably will appear later on. El Niño could change a bit what's going to happen with prices in the second part of the year.

Thank you very much, Jose Luis. There's a question related with the Spanish wildfires. I think that, Antonio, you want to comment?

Actually, we're deeply saddened by the scale and severity of these wildfires in some regions in Spain. Devastating some rural areas. Far, based on the information available to us, there are not material impacts on insured properties. They are in rural, non-populated areas, there are not relevant damages in insured property. This is the information we have now so far.

Thank you very much, Antonio. Regarding all theLatAm, what is your estimate of the impact of the recent regulatory headwinds in Mexico and Colombia in the first half?

It is true that in what we call all theLatAm, we have suffered a bit during the first quarter. In Mexico and Colombia, we have observed an increase in claims frequency and inflation. We are already implementing technical measures on price and adjustment, whose efforts will be reflected progressively over the coming quarters. In Colombia, if you remember what happened at the end of last year, we have had significant increase in the minimum salary, and we have also observed some second-round inflation effort. In the case of Peru, where we have workers' compensation insurance for work-related accidents, you know that the liabilities are indexes to inflation. When inflation rise, so does the cost of claims. As this obligation lasts much with inflation-linked bonds, we have a compensation via financial results.

We expect that this has happened in the first part of the year, has less effect on the second part.

Thank you. Thank you very much, Jose Luis. I have a couple of questions about this region as well. One is coming from Juan Pablo Santander, saying that the technical result has been weaker with a combined ratio above 100%, asking about any extraordinary during the quarter. Paz Ojeda is asking about how can we explain the evolution ofLatAm in the first half of the year, and what is our view on the next months and the next quarters?

Probably part of these answers has been commented before. The prospect for the second part of the year probably are more positive. We had overall, during a big part of last year, headwinds regarding the FX effort. This is changing, and it's changing, completely. So far, year-to-date, we have a quite strong appreciation in currencies for most of these countries. We expect them to contribute a little bit more than on the first half.

Okay. We are moving now to Brazil. How do we see revenues going forward?

Let me say something about that. The situation currently in Brazil, also in other Latin American countries, is still in a specific situation because of the electoral processes there. We can anticipate political stabilization after the electoral processes, and we can anticipate that after these processes, the fundamental of the economies will be better, and the possibility to distribute more insurance products linked to financial products should be wider now. We consider that Brazil, and even other countries like Colombia in the same situation, even Peru, and even Chile, are economies where we have enough room to grow, and we can expect a very positive forecast for the next quarter in terms of growth.

Thank you very much, Antonio. Juan Pablo from Santander is asking about the potential claims damages from El Niño events in the following months. He asking if we have any extraordinary reserves for this, or do we have any kind of forecast about this event in the future months?

I think as we had commented before, we are on the upper end of our reserve band. We have no specific. We have reserved for the business itself. It's true, it's quite difficult to try to measure what could be the net effort. What we know so far is that El Niño has a high probability of having a high impact. On the other hand, there is a negative correlation with the hurricane season. It doesn't mean if you only have one hurricane in the Caribbean, this could be a big impact of size or level 5, let's say. In theory, there will be some kind of net effect. Parts of, in the case of Brazil, could suffer more from floods or raining, and other parts of Brazil with drought. The overall effect is quite difficult to measure.

Just to remember that last year, we have as well same kind of forecast, that it was going to be the worst year in terms of the hurricane season, and by the end of the year, nothing happens. We are prudent. We continue to manage the business with a lot of care. We are prudent, and so we are prepared.

Thank you. Thank you very much, Jose Luis. We have now a block of questions coming related with EMEA. Antoine Bouchud. He's asking about the details on the profitability of the main countries of the region, and what was the impact of the floods in the first half?

Okay. Regarding EMEA, we are operating there with 4 countries, going one by one. In the case of Malta, probably the business is performing extremely well. We have a combined ratio around 85%, 87%. It works pretty well as always. In the case of Germany, the business as well is having a very good performance. We have a combined ratio below 100. We are seeing growth in terms of premium. Probably, we dare to say that Germany is on track. Italy probably is suffering a bit more. It's a small company. Probably we don't have critical mass, despite we are growing step by step. We have realized as well there are some kind of distribution channels which are not performing extremely well, especially with agents. We are closing down those channel, and we are focusing on those that we are getting profitable results.

In terms of prudence and prepared for the rest of the year, we have decided to increase the reserve to be prepared. Turkey. Turkey is suffering from different sources. First, probably is one of the countries more affected by the Middle East crisis. Inflation is higher than normal, so there were no way to reduce rates and to increase GDP for the economy. We are suffering a bit as it happened in other Latam for the second round inflation efforts. The floods was an impact that we had during the first part of the year, but it was one-off, and we expect to recover during the coming quarters.

Thank you very much, Jose Luis. His question as well about the combined ratio that he seems stabilized and remains above 100% quarter after quarter. How is our medium, long-term view on this non-live business in the region? What strategic options are we considering for the region of EMEA?

Well, in terms of the combined ratio, of course, we would like to reduce the figure below 100. It's true that the weight of Turkey in the sum of the parts is really high. Despite we are making a lot of money on the financial side because they keep rates extremely high. We would like to see our normalization just on the combined ratio for the technical point of view. In Turkey, it's going to take some time. The strategic options that we are considering as the same that we have last year. We try to improve business by business. As we said, we see an incredible improvement in Germany. Malta is performing extremely well. Italy maybe has some delay, but we are still extremely focused on coming back to our combined ratio below 100.

On Turkey, we have to see what's going on with the Middle East crisis and see if we can get a more stabilized economy and it to perform business as usual.

Thank you. Thank you very much, Jose Luis. Juan Pablo from Santander is asking about EMEA region. I mean, profitability, he says that remains weak. He's asking that if after acquiring Safety, if we see any kind of change in our strategy and maybe dispose of any business with low scale and low profitability in competitive markets.

Following the acquisition of Safety, we don't foresee any changes of our strategy outlined in our current strategic plan. All of our businesses are in the black, we have already divested from or reduced our presence in less profitable businesses. Our geographical footprint is what we consider ideal, and we have consistently maintained that expanding in the U.S. and Brazil is a strategic priority. With Safety, we are delivering on this strategic objective. We will continue working on the technical side to improve performance in underperforming line of businesses in certain countries. However, our technical ratios overall are already pretty solid, supported by favorable interest rates environment.

Thank you very much, Antonio, for your answer. I have a question in general about the motor. It's coming from Alessia from Barclays. Considering the motor pricing cycle and the uncertain outlook of motor insurance in the AI era, what is the rationale of investing in motor insurance at a very high multiple?

Well, regarding the investment in motor pricing cycle and uncertain outlook of motor insurance, probably uncertainty is here, and it has been with us forever. It is true that this type of business is something that we do well, I would say all over the world, and also in a region that we know extremely well. For us, it's trying to strengthen our strategic position in the U.S. We are getting more size, getting more critical mass. As I said before, I think this deal could be good not just for shareholders, but as well for customers and employees.

With the AI, there's a lot of discussion about this topic, but something which is clear is that if you compete in terms of quality, in terms of services, if you are close to your customer, I think you can do it extremely well, and the artificial intelligence is also another lever that we are using right now, not just in the U.S., but in the rest of the world, in order to be more close to our customers and provide a better services with a lower cost. There are a lot of activities that we are doing with artificial intelligence, and probably more activities that we will do on the coming quarters. We have no pressure on that.

Thank you. Thank you very much, Jose Luis. We have a number of questions coming from different analysts related with combined ratio on motor in Spain. I will ask them all together, and we can give a general answer on this. Juan Pablo from Santander asks about the combined ratio that increased to 97% in the second quarter. Do you expect to normalize at this level after a strong first quarter? Max from MassMutual is asking, what was the reason for the deterioration of the combined ratio in motor in Spain in the second quarter? What kind of sustainable levels are you seeing in the coming quarters? Juan Pablo is also asking about the insurer units that we see almost flattish quarter-on-quarter. How do you see competition, prices, and revenues going forward?

Finally, Max is asking about the average price increases that we are implementing in motor insurance in Spain. Finally, Alessia Manni from Barclays asks about the combined ratio deterioration on the second quarter, and if there should be a change in trend which is sustainable. I know that is a hot topic right now.

Thank you for the question. I'm not sure I will remember all of them, but I try my best. Regarding the market, it is true, it's a huge competition in the Spanish market, in auto. We are confident that after several years of trying to work really hard on the subscription and technical measures, we have come back to profitability. Probably a very good number. We saw it on the first quarter of this year. It is true that we have lower frequency, because for most of you that remember what happened in Iberia during the first 3 months of the year, we have a lot of rainy days. Probably Spain was, or Iberia, was one of the regions with more rain if we take into account all the world.

For that reason, probably people used less the car, we had an excellent combined ratio on the first quarter. On the second quarter, it has normalized a bit to normal frequency. It is true that the guidance that we say to be in Spain with a combined ratio around 96%, 97% is where we are and where we expect to be in the coming quarters. On the other hand, worldwide, to mention that we have carried out a quite important structural change with our ne2rk, this is probably paying off slowly. We see during the second quarter more, I would say, commercial activity. Probably the last 4 months of this half of the year, we have seen that the new production of policies has been the best for many years.

We are confident that the new commercial structure will pay off on the coming quarters.

Thank you very much, Jose Luis. We have a question coming from Maripaz Ojeda from Banco Sabadell. It is related with the tolerance range on the leverage rate that we have in the MAPFRE group. Antonio, can you give us an answer on this?

Yes. Regarding our leverage following the Safety acquisition, we are very comfortable with the tolerance levels presented in our last AGM, which is around 24%. Given that we are a strong cash generator, we expect to gradually reduce our time to return to pre-acquisition levels.

Thank you. Thank you very much, Antonio. We don't have any more questions. I don't know if you want to make any closing remarks.

Yes. Thank you. Thank you for your questions and for your continuous interest in MAPFRE. We are very pleased with where the group stands today. We are delivering the best results in our history, supported by a strong technical performance, financial strength, and a diversified business model. At the same time, we remain focused on the future. Alongside organic growth, the Safety acquisition is an important step in strengthening our position in the U.S. and creating additional value for our shareholders over the long term. Recently, this morning, S&P has announced the improvement of our rating or holding. MAPFRE, it says, is going to be A from A minus, and MAPFRE is going to have the rating of AA minus.

We consider that this is a very positive consideration, and even S&P say that the potential acquisition of Safety will have a limited impact of the financial risk profile of MAPFRE, while strengthening the group's competitive property and casualty position. It's something very important today for us. Above all, I would like to thank you for the close follow-up, support, and confidence you continue to place in MAPFRE. Finally, I would like to thank you, our shareholders, for the trust and support. The positive evolution of our share price reflects a growing recognition of MAPFRE's strength and resilience and future potential. We do not take that confidence for granted. We remain committed to continue to create value, to growing profitability, and to progressively improving our dividend as one of the key priorities for shareholders.

Finally, we wish you all a wonderful summer and a well-deserved break. Thank you very much, and see you again after holidays.

Thank you very much, Antonio, Jaime, Jose Luis. We will be available on the investor relations department, and if you have any further questions. Thank you very much.

Good morning, and welcome to Mapfre'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 Inchausti, Vice President of Mapfre, 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 adopted 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, Mapfre 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 Inchausti.

Thank you, Leandra. Good morning, everyone, and thank you for joining us today. Let me begin by highlighting the strength of Mapfre results this quarter with a net profit of EUR 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 Mapfre 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 U.S. 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 improvements achieved in recent quarters as reflected in the Non-Life combined ratio. Finally, I would also like to highlight the excellent performance of Mapfre RE. 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 Mapfre 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. Growth 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 3-year average of premium growth of 6%, excluding life 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 1 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 EUR 311 million is nearly 13% higher than the previous year with the ROE reaching 12.9%, 13.8% excluding extraordinaries, which puts 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 U.S. dollar. Beyond North America, this has also had a relevant impact on Mapfre RE and on some Latin American businesses, where property portfolios are often dollar denominated. In euros, Non-Life premiums are down 2.6%, reaching over EUR 6.6 billion, while at constant 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 loss ratio is down 1.7 points, driven by better risk selection and effective claims management, which more than offset the slight uptick in the expense ratio. Non-Life net financial income increased by around EUR 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 EUR 38 million this quarter, almost EUR 19 million more than last year. Turning now to the Life business. Premiums were broadly stable at EUR 1.8 billion, down 0.6% in euros. Life Protection continues to show solid growth, especially Iberia and Latin America, with a combined ratio below 86%. Gross realized gains were up around EUR 4 million year-on-year.

Regarding other business activities, which mainly include holding company items, results were affected by a EUR 5 million increase in debt expenses as well as some timing difference in other holding company costs. The high interest rate -- the higher interest expense is following the early refinancing of EUR 1 billion in January to replace the senior bond maturing in May.

Finally, hyperinflation adjustments were relatively stable year-on-year at EUR 16 million. We continue to deliver strong earnings growth driven by improved underwriting performance, disciplined cost 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 EUR 138 million, up 14%. Total premiums remained stable year-on-year. Life premiums are down, while Non-Life premium growth is supported by Motor and Accident & 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 EUR 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 & 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 P&C, 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 Life business. Premiums were down 5%, reflecting lower activity in 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 Life compared to Non-Life. Brazil remains a key driver of profitability.

Net profit reached EUR 65 million, up nearly 6%, and the return on equity remains well over 26% with improved technical ratios and strong investment returns. The Non-Life 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 remained stable year-on-year with a protection combined ratio of 84%. In LATAM, premiums are growing 4%, driven by Life as well as Accident & Health, which offset lower issuing 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 the strong contributions from Mexico, Peru and Colombia with a EUR 16 million net result. In Mexico, premiums are over 16% with Life growing 19%. Accident & Health is up 38%, supported by VAT and related tariff increases.

The combined ratio is 96.4% with a net result close to EUR 12 million. In Peru, premiums are down 1.7% due to currency depreciation, while the net result has improved 24% to EUR 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 U.S. dollar depreciation. The vehicle fleet is stabilizing with policy growth is moving faster than expected. The combined ratio continues to improve, down 2.4 points to 95%, with General P&C at an outstanding 89% despite winter weather impacts. Results are up to over EUR 30 million.

Mapfre RE includes reinsurance and global risks, and both are affected by market softening as well as the U.S. dollar. Global risk premiums are down 13%, affected by the large policy issue last year. And reinsurance is down 6%, 4.5% at constant 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 the Southern Europe.

Additionally, there was a 5-point impact from the reserving 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 EUR 36 million, supported by solid investment yields and the realization of EUR 32 million in gross gains, EUR 26 million more than last year.

EMEA is reporting its fourth consecutive quarter of profit reaching EUR 2 million, with a strong turnaround in Germany, now in positive territory. The Non-Life combined ratio is down 2 points, driven mainly by motor, 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% lira depreciation. Financial income continues to benefit from high interest rates. Finally, MAWDY is contributing positively to the group with operating revenue growing over 7%, we are also seeing a continued improvement in profitability. I will now hand the floor over to Felipe to walk us through the balance sheet and capital related topics.

Thank you, Jose Luis. Shareholders' equity remains robust at over EUR 8.9 billion, in line with year-end. Positive currency conversion differences, mainly from the Brazilian real and the U.S. dollar appreciating 7% and 2%, respectively, offset the impact of markets on the performance of the investment portfolio. Leverage stands at 26%, up almost 6 points. Following a prudent approach, in January, we completed a successful dual tranche senior transaction at very attractive levels, given the current market conditions.

These bonds will replace the senior bond maturing in May. Excluding this, leverage would be at 21.5%. On the top right, we have included the 2025 embedded value figures, which reflect the use of the CSM net of tax under IFRS for the multiyear business. Embedded value is flat at just over EUR 7 billion. The value of in-force business is down due to a lower contribution from protection products in Brazil and Iberia, which was offset by the multiyear business in Iberia, LATAM and EMEA.

The return on embedded value was almost 10% with a positive contribution from the Spanish savings business, driven by higher premium volumes and margins. The value added from new business is also up with new business margin increasing 30 basis points to 3.6%. The Solvency II ratio continues within the target range over 205% at the close of 2025, according to provisional data. Final data will be disclosed with the group SFCR in May 20, 2026.

Total assets under management stands at over EUR 67 billion, growing 4% year-to-date. Our investment portfolio amounts to EUR 46 billion, reaching EUR 50 billion if we include unit linked. On the right, we are now presenting the investment portfolio weights, including unit-linked to better reflect our risk profile. At the beginning of the year, we decided to slightly reduce equity given the high degree of market uncertainty.

This was mainly reinvested in European govies, including France and, to a lesser extent, Belgium and Germany as well as some high-quality credit. We would like to highlight that alternative investments are a small share of our portfolio, around EUR 1.8 billion invested. More than half is invested in prime European real estate, around EUR 900 million.

Less than 30% is allocated to corporate private debt via funds of funds mainly in Europe, focused on senior loans with defensive positions in terms of diversification and duration. Infrastructure and renewable energy are 13% of alternatives, while private equity amounts to 8%. Regarding third-party assets, they are up 6% to over EUR 17 billion. We are the top nonbank asset manager in Spain and remain a benchmark in financial planning. Mutual funds are growing 12% this year.

Brazil continues to be the main contributor to this growth with an increase in assets under management of over 30% during the quarter. We are also seeing solid growth in Spain. I will now comment on our relevant fixed income portfolios, which are mostly actively managed. This amounts to around EUR 20 billion. The remaining EUR 15 billion is allocated to cash flow or duration match portfolios focused on minimizing interest rate risk.

Regarding the euro area, overall yields and duration are slightly up. In our other markets, the Brazilian portfolio shows a marginally lower yield of 12.5%, while duration is stable. In North America, yields and duration remain unchanged. As you can see, our portfolios are well positioned to navigate the current volatile environment. I will now hand the floor over to Jose Manuel to make a few closing remarks.

To wrap up, we have had a very solid start to the year. The first quarter results clearly confirm the strength and resilience of Mapfre's business model. We are seeing improving profitability trends across geographies and products, reflecting a gradual recovery while maintaining a robust financial position with high solvency levels and disciplined capital management.

At the same time, we continue to operate in a highly uncertain global environment and in a competitive market with signs of softening in certain insurance and reinsurance segments. Our discipline and technical excellence is more important than ever, and we remain firmly committed to profitable growth, sound underwriting and prudent reserving. As proven in the past, Mapfre has successfully navigated complex market cycles, and we are well prepared to do so once again.

We are well positioned for a return to growth, maintaining leading positions in Spain, where we are growing in the total number of clients, especially in homeowners and health. We are also proud to say that our recent NPS figures show that we hold leading positions and that our clients appreciate our efficiency, reliability and proximity with a wide physical network. We will leverage on these strengths. As I already mentioned, we feel Latin America should keep providing stability and is a region that could benefit from the current geopolitical situation.

Mapfre RE should continue to deliver strong results with a diversified product mix, prudent underwriting and solid reserving. Our diversified business model, prudent risk management and disciplined strategic execution are key strengths that allow us to navigate the current cycle from a position of resilience and strength.

We are well positioned to meet our targets, reinforcing our strong commitment to shareholders while maintaining discipline in a demanding market. Additionally, currencies are becoming less of a headwind and financial income remain strong. In conclusion, after years of hard work, we are now where we want to be. Performance is excellent. Our balance sheet is strong, and we can leverage our leading market positions to return to growth. I will now give the floor to Leandra to begin the Q&A session.

As a reminder, you can use the Q&A tool on the bottom of your screen. We will group the questions by topic and answer them as time allows. Now let's start with the first group of questions. We've received some questions regarding the Mapfre RE business. In particular, Juan Pablo and Paz Ojeda from Santander and Banco Sabadell would like to know, you've been increasing the prudence in reserves for several quarters. Should we expect this to continue in the next quarters? Given the already conservative stance in 2025, could you quantify or give us an idea of the level of provisioning of the Mapfre RE business?

Okay. Thank you, Juan Pablo, for your question. In terms of reserves in Mapfre RE, it is true that we have a probably better-than-expected quarter in terms of weather-related events. And for that reason, we did a provision in Mapfre RE around 5 points of combined ratio that in quantifying terms was around EUR 50 million. But you know we are just at the beginning of the year. Probably the most difficult season for us in terms of weather-related events could be the second and the third quarter. So we prefer to be prudent.

We've received another question, again, regarding the reinsurance business, specifically, Maks from JB Capital would like to know the impact of the storms in Southern Europe on the combined ratio in Mapfre RE. I can take this question, Maks, and we can follow up after the call. But we're looking at a pretax impact between EUR 40 million and EUR 50 million, which you can calculate later the impact on combined ratio and on the reinsurance business.

We've also received another question regarding CAT and weather-related events. Juan Pablo from Santander would like to know what was the impact of these same storms on the combined ratio for the general P&C business in Iberia.

Well, I think it's quite difficult to make a guess regarding the rest of the year. It is true that January and February were extremely rainy in Spain and in Portugal. Probably we have heard some comments that probably January was the most rainy country in the world in case of Spain.

And looking at the statistics, probably we were around 85% above the average of the last 25 years. So this has affected, to some extent, homeowners and condominiums. But on the other hand, probably we perceived that there were less traffic in the first quarter of the year and probably it has benefitted as well to auto.

Maybe just to add specifically, and as Jose Luis said, that the large majority was in the homeowners and condominiums business, we're estimating a 7% to 8% impact on the combined ratio for General P&C. The next question is regarding our solvency position, the evolution between September and December. We received questions from Paco Riquel at Alantra as well as Juan Pablo at Santander. They would like to know what is behind this quarter-on-quarter reduction? And what should we expect for 2026?

Okay. Indeed, the change in the solvency position is mainly driven by the increase in both equity exposure and the equity risk capital charge. As you know, the capital charge for listed equity is 39% plus the symmetric adjustment. This adjustment is designed to reflect the fact that when equity markets are trading above the average levels of recent years, the potential impact of a market downturn is higher than when markets have already declined.

Since December, equity exposure has increased by EUR 360 million due to the rise in equity markets and the symmetric adjustment has increased from 2.86% to 7.90%. This implies that the equity capital charge will increase by 12% over the year. In the last quarter, equity exposure increased by EUR 261 million, while the symmetric adjustment increased by 1%. You asked about what our guess regarding the future.

Probably this will gradually reverse because during the first quarter and looking at the different situation in the financial markets, we prefer to be more prudent in our investment portfolio. So we slightly reduced in January, in February as well as in March, our exposure to equity markets. So probably, we expect an improvement in the solvency ratio looking forward.

We also have a question regarding the asset management business. And we've seen that assets under management are quite strongly up quarter-on-quarter, over 12%. Could you break down the contribution from market performance and net inflows?

Well, if you look at market performance, I think it's quite difficult to assess because probably January and February were very good months, but when you come to March. And we have the problem in the Middle East, what we saw was high interest rates and lower equity valuations. So probably it's more a subscription effort rather than market valuation.

On a similar note, we have another question related to the asset management business. Juan Pablo, Banco Santander would like to know if we would consider inorganic growth in this area, particularly in light of recent press reports regarding potential sales in the market.

I mean we don't usually comment any kind of transaction on the M&A until it's done. In any case, this is an area where we showed certain interest in the past. We have very good agreement with Abante. I think that Jose Luis could comment after how we are developing this line of business.

And we are showing figures that are very encouraging on our own in these last months. This is what I can tell you. I mean, that kind of interest that we have been showing on the M&A side, we've been already exposed in the last quarter. If you want any further confirmation on the areas where we want to expand, that will be -- I will be glad to -- with a follow-up call.

We received several questions today on the topic of growth, in particular, regarding certain one-offs or the specific evolution of the General P&C business in Iberia, Motor, the Reinsurance business, the Life business. Maybe we can start with some general comments on growth, and then we can move on to the specific questions.

Yes. Just for going a general statement about growth. It's true that the first quarter has been affected for some factors. The first one is the exchange rates, which are still a headwind, and they have taken out 2 points of growth from us. The second thing is some important one-off effects in Spain regarding life-saving products that we have an extraordinary quarter due to maturities in 2025, what hasn't been the case in 2026.

And then in property casualty in Spain, we had a big issuance on the transportation transport branch. Also in global risk, we have suffered these effects of different maturity renewal of certain businesses that have affected the first quarter. And the last effect has been the market softening that we are seeing, especially in the renewals, the Mapfre RE renewals.

Having said that, we have a positive outlook on growth for the next quarters. Based on exchange rates, effects will be reducing their impacts. And we -- even we think that by the end of the year, it will be -- exchange rate effect will be a tailwind and not a headwind. We will see -- we didn't -- we will not have these one-off effects in the next quarters. We will see opposite effects in coming quarters.

And based on the solid technical work that we have been doing in the last years, we are in an excellent starting point to grow in the coming quarters. There are many initiatives. We are very focused on growth with profitability, always with profitability and we have a positive outlook on the growth for the next quarters in the company.

Maybe we should start with the Spanish motor business. We received a few questions. I think the first was regarding the evolution of the insured fleet during the year. When do we expect this change in the vehicle fleet to plateau to stabilize? And what's our outlook for pricing going forward in Spanish motor? And are we looking to gain market share?

Well, regarding motor in Spain, I think we have had, I would say, a really good quarter. As we said at the beginning, probably maybe a little bit affected by the weather and probably less frequency than expected. We have an excellent combined ratio. it's going to be difficult to maintain such levels, but probably it will be -- as we have said on the AGM, we aim to get something around 96%, 97%, even lower, if possible.

So we are working hard on that area. And regarding growth, as Jose Manuel has pointed out, I think we are really looking for growth, but at reasonable prices. I mean, we want to grow, but we don't want to damage. We don't want to affect the combined ratio. So we would look at the different opportunities. I think in terms of fleet, I think we are more or less stabilized.

I think we have reached the point where we feel comfortable. This was the pruning of this part of the business were an area of improvement during the last 2 years. And I think that we have reached a point that probably [indiscernible], probably we will see more increases looking forward. But we are positive in the position that we currently are in. And the important thing is we are really prepared for growth.

Thank you. Moving on to the reinsurance business. We had a few questions. The first was from Carlos Peixoto. He would like to know how we're seeing the evolution of tariffs at Mapfre RE after the recent renewal period. And also, what's our expectation for pricing throughout the rest of the year? Do you think this will feed into the gross written premium figures?

First of all, I think that the trend is confirmed. I mean we are looking at the same kind of trends that we were announcing and by the end of the year on the renewals of the part of the portfolio. The renewals of April are not the most important for the group. It is only -- we are speaking of around 15% of the renewals. There was a reduction on the pricing, but we are as well confirming and opening new markets. I mean these were affecting mainly the Asian markets, and we are now opening an office in India.

So that is -- that will be contributing to the growth in the future. What we have right now is an environment on the reinsurance business in general that is still compatible with profitability. I think that the prices have been adjusted, but they are still in the margins that where the companies can make profits and the proof of it is the excellent results that we are presenting at the first quarter. And that should be following during the year.

Let me add that in spite of the reducing of the average premium because of the softening of the market, which is a phenomenon for every company and every market, and we can do little for to avoid that. In spite of that, we have a very positive impression of the renewal process because we have seen consolidating our relationship with our long-term customers.

We have acquired new customers, and we are developing the business lines that we wanted to promote in the future in Mapfre RE like Life insurance lines. So we are happy with the renewal process, and we are optimistic about the next renewal processes that will be coming along the year.

Thank you. We've also received a few questions regarding another one of our core business units, Brazil, both Carlos Peixoto from Caixa BPI, Maks from JB Capital and Juan Pablo from Santander. They would like to see the outlook of premiums for this year. And in particular, if there will be an impact from the diesel and fertilizer shortage on the agricultural business.

Okay. I think it's a really long question. Let's try to split the question in several answers. I mean, Brazil is doing pretty well. I mean, results remain strong, supported by sustained technical and operational improvements. I mean, probably is where -- is the business unit where we have the highest return on equity. The weaker top line is concentrated in agro and in Life Protection, which are closely linked to credit and the interest rate cycle.

It is true that this year, there has been a reduction around 25 basis points, if I'm not wrong, on Selic. But still, I mean, there is more area for improvement in rates. And probably if rates decline, if things normalize a little bit in Middle East, we are sure that most interest rates in Latin America probably could fall a bit, which could help us as well in terms of premiums.

But despite all these challenges, I think that Mapfre has shown strong resilience and execution capability. And I think we look for growth in nominal terms. But also, as we mentioned at the beginning of the position, the currency movements that last year, we suffered a bit after the announcements of the tariff war. I think they are having some kind of mean revision as we have pointed out on previous quarter's results.

So right now, the real is stronger, around 10% compared to December last year. And if we have a little bit of tailwind coming from the currency, and we continue with our growth, multichannel expansion, our operational efficiency, probably we will see positive growth, not just in nominal in real, but also in euros significantly.

If I may, Jose, just for the question of the fertilizers and the cost of diesel on the Brazilian market, I think that you have to remind that maybe this region in the world is less affected by the Strait of Hormuz blockage right now. So what we should expect is, of course, there will be some kind of increase of cost for the fertilizers and the diesel, but they're going to be much milder than the ones that we are going to experience in other regions, mainly in Asia. So all in all, the outlook is more positive than in the rest of the world and any kind of impact is going to be more moderated.

We have one last -- one final question on growth. We touched upon it briefly at the beginning regarding the Life business. Specifically, Juan Pablo, Santander would like to know if the weakness in the quarter reflects stronger competition from the banks. I don't know if we would like to add anything more on our outlook for the competitive environment for the rest of the year.

To be honest, we don't see an increased competition coming from banks. It is true that some of the players has moved maybe from deposits to life insurance products and so on. But we see that we have an incredible opportunity. We have the aim to become the leader in financial planning in Spain.

We have more than 3,000 branches, more than 10,000 people really specialized in investments and savings, and we would like to leverage on such capability. As you -- most of you already know, we have changed a little bit the commercial structure at the beginning of the year. So we think that, that plus the new branding, I think it's going to help a lot to develop the business. So we are positive, and we will continue growing.

Now we're going to move on to a few questions regarding the combined ratio evolution across different geographies. The first one is regarding Brazil. This question is from Carlos Peixoto, Caixa BPI. He would like to know our outlook for 2026.

Okay. The outlook is -- continues to be quite stable. I mean I think that the main concern in the Brazilian market right now is the high interest rate that they're still showing and then the consequences on the growth of premium. The combined ratio in the absence of any dramatic climate event could -- should continue to be quite stable and positive.

On the other side, we still think that the combined ratio that we are showing in the motor business is compatible with profitability. Probably if there's a slowdown in the -- or a lower interest rate for the end of the year, probably the combined ratio should improve in general in the market in the motor business. So all in all, I think that the trends that we are showing in the combined ratio in Brazil should remain at the same -- similar levels.

Regarding the Iberian business, many analysts have highlighted the strong improvement from Q4 last year to Q1 this year. I think the questions are, have there been any one-off extraordinary impacts that we need to keep in mind? And how sustainable is the current level?

Well, regarding if there is any specific one-off benefit, probably, I don't know, we could say that the weather probably was worse than expected, more rainy and less frequency afterwards. But we don't have any other issue that could have fed as a one-off during the quarter. It is true that we have achieved this level after 2 years of hard working trying to reduce the combined ratio.

I think we still try to compete in terms of quality in the marketplace. According to our features, our internal studies, I think that our customers are really happy with the service that they receive much more than any one of our competitors. And we will continue working on that line.

If this is sustainable or not, time will say, but probably the achievement in such a short period of time probably is really high. So probably, as our Chairman has said in the AGM, having a combined ratio around 96%, probably it is a target that we are working on. If better than that level, perfect. But once again, we want to grow, but we don't want to damage the combined ratio.

In addition, we've received a few questions regarding our view on the impact of the current softening of the reinsurance market on the combined ratio for this year.

No major comments on this. As I think that we said, what we are seeing in the market is that there is a softening. On the other side, we can still say that the attachment points and the conditions that we are showing in the contracts are still on the more conservative side. So we see that these combined ratios could be compatible with profitability.

Once again, what we have right now in the combined ratio is that there is a 5-points impact coming from the reinforcement of reserves, this EUR 50 million that Jose Luis already mentioned. And the combined ratio of Mapfre RE should be continuing to be quite positive in the absence of big CAT events. But I mean, you know that we already said that the second and third quarter are key for the development of Mapfre RE, reinsurance profitability and performance during the year.

We've also received a question regarding the Nat Cat budget for the year. Just as a reminder, we are usually looking at 10 to 12 points on combined ratio. And the question was whether the quarter -- how it compared to this Nat Cat budget. We don't provide a Nat Cat budget on a quarterly basis. But as we signaled clearly and together with the strengthening, it was a benign quarter from a Nat Cat point of view.

And we have one final question from -- in Mapfre RE regarding financial income. Juan Pablo from Santander commented that the results were very strong this quarter, both in life and non-life. And were there any one-offs? I think we've touched on the provisioning side. Maybe in financial income, we can give a little more color.

Sure. As we described at the beginning of the Q&A session, at the beginning of the year, after an excellent 2025, we thought that probably financial markets were in a point that everything could happen. And then for the reason, we decided to reduce a little bit our risk profile in our investment portfolio. And for such reason, rather than to be overweighted in equities, we prefer to be underweighted in equities.

If we do any mistake, we prefer to do the mistake in the most conservative space. So for that reason, we reduced exposure. We did capital gains. Thank God, the majority of it before the crisis in the Middle East. So we did around EUR 50 million capital gains coming from equity, which probably is, I don't know, around EUR 20 million, EUR 25 million more than last year for the same period, and it was exceptional due to the situation of the financial markets.

So right now, we have to wait and see what financial markets, how they will perform depending on the conflict. And as I say, the most important thing for us is if this is a short-term conflict or a medium, long-term conflict because of the impact that this will have in inflation, probably it could be high if this is a medium-term, long-term conflict. So this is the reason of the one-off in the financial income.

Thank you. Before we move on to the more strategy and target-related questions, we have one that just came in now from Paz Ojeda at Banco Sabadell regarding the U.S. business. We mentioned that policies were beginning to stabilize, although premiums are down in local currency. Could you elaborate on the current market and pricing dynamics in the U.S.

Yes. Policies are stabilizing, which is quite a very good news for us. And the gross written premiums are quite stable in local currency. So that gives us a view -- a point of view that the situation in the U.S. market is prepared to what Jose Manuel already stated that we were ready to start slowly growing and stabilizing the portfolio.

On the other side, we are showing excellent combined ratio in the first quarter that was affected, of course, by the good climate during the first quarter. And we don't expect any kind of change unless there is any kind of big event. What we see from the gross written premium is that the market is continuing to adapt prices to the reality.

It is true that the increase of prices are much, much lower during the last year than we were -- and they were all already fed into the profit and loss, all the price increases that we did in the past. And the market is already competitive and stable, and we look forward for continuing to improve the profitability in the future quarters.

If I may add, we are particularly satisfied with the first quarter results in U.S.A., not only for the technical results, which are quite well with this 95% of combined ratio, but also for the commercial KPIs. We -- after some quarters of technical -- very hard technical job, in this quarter, we have seen an increase in customers, and we have seen an increase in market share, quota market share, I'd say after many quarters of working mainly in the technical aspect. So we are particularly happy with these results in our U.S.A. operation.

We're now going to move on to the final set of questions. They're surrounding our recently announced targets at the AGM. As a reminder, we have our main public target for the growth target, which is 6% on average over the 3-year strategic plan, excluding life savings at constant exchange rates.

We also have our combined ratio target and our ROE target. Specifically, they would like to know how do we see ourselves positioned to meet both the growth target and the combined ratio target? And what risks are there from now until the year-end for the combined ratio to move upward from the current level?

What I say is that -- I can say that we maintain the commitments, the public commitments that were adopted in the AGM. Regarding ROE and regarding combined ratio, we are fully on track to fulfill the commitment by the end of the year. And we also maintain the growth commitment, this 6%, which is a constant exchange rate and is an average, and we still maintain the commitment that was recently done in the AGM.

We'd like to make a few closing remarks with no further questions.

Yes. If you make me -- thank you for your question. If you make me -- to make some closing remarks. The first thing is that we present what I would call a fantastic first quarter from the point of view of the technical results, very solid results based absolutely on technical improvement. No extraordinary results coming from the business or coming from the financial results.

So that is the results of many years of -- some years of working in the technical aspect, in pricing, in containing expenses, et cetera. So this is the first thing. The second thing I would like to speak a little bit more about on growth. It is true that in the first quarter, we have suffered from some punctual no favorable effects, but we are positive. We still have a positive outlook of coming quarters.

The first thing that these negative one-off effects that we have had in the first quarter, we will not have it in the next quarter. The second thing is the solid technical result that we have got, and this is a very good starting point to have profitable growth in the future. There is another thing we haven't -- usually, we don't mention, but we have got excellent NPS, Net Promoter Score qualification in our main geographies.

So this is a very important basic point as well. And we are in the process of deploying or already deployed many commercial initiatives on track at a corporate level and also in the main geographies. So this is why we think that we could take that 6% commitment on average by the end of the year, and we will see growth in the next quarters. The third thing I would like to highlight is the process transformation is ongoing.

We have deployed a very strong data governance in almost all the geographies in which we operate. We have an internal database, which is called Atenea, which is being deployed gradually in the main countries. We are deploying AI in the main processes of the company across the company, across the geographies, to give just an example, in Spain, we have 100 use cases with EUR 28 million of positive impact on the profit and loss account.

Our main system -- our main IT system transformation plans are on track in Spain, in U.S.A., in Germany and in other countries, and we are working even in new ways of working more efficient and more agile within the company. And the last thing I would like to highlight is the brand transformation process that we have suffered at the beginning of the year.

It will not have a short-term impact on the company, on the growth, but it has been received as a very positive -- with a very positive feedback and the KPIs relating to this brand recognition, brand valuation, et cetera, we have seen a very positive impact, and we have no doubt that in the midterm, it will be a strong contributor to the development of the company. So overall, taking into account, of course, the geopolitical situation that is we are monitoring it every day. We have -- for the internal strengths that we have, we have a positive outlook -- a reasonable positive outlook for the rest of the year.

Thank you, Jose Manuel, Jose Luis, Felipe, for your time today, and thank you for all of you who've connected. Before we close, as a reminder, all the documents are available on our website in addition to the 2025 embedded value figures. And also as a reminder, we're hosting a meeting next Monday afternoon in Madrid for analysts and investors. You should have received the invitation. If you haven't or haven't confirmed yet, please reach out to us. Thank you.

Good morning, ladies and gentlemen. Thank you very much for being with us today. This is the General Shareholders Meeting of MAPFRE S.A. We're going to begin the session. I would like to inform all of those present that the Board of Directors has requested the presence of Notary José María de Prada Guaita, who is seated at the table located next to the first row of the room on your left, and he will be taking minutes of the meeting. Before giving the floor to the Secretary to report on the agenda, I would like to remind you that this general meeting is also being held by a telematic means through the telematic assistance platform set up for this purpose on the corporate website.

This platform allows shareholders to exercise the rights to attend, participate and vote. In addition, I would like to inform you that this general meeting is being broadcast live on the Internet so that anyone interested may follow it live from anywhere in the world.

I give the floor to the Secretary, who will report on the agenda of the meeting and other aspects of its proceedings.

Good morning. At 11:30 minutes on March 13, 2026, the General Shareholders' Meeting of MAPFRE SA, we are here invited at the Palacio Municipal de Congresos del Campo de las Naciones located at Avenida de la Capital de España without number on first call the possibility of remote attendance, the General Shareholders' Meeting of MAPFRE SA convened by resolution of the Board of Directors on February 11, 2026. All of the members of the Board of Directors are present. The announcement of the meeting was duly published on February 12, 2026 in the newspapers Expansión and Cinco Días on the website of the Spanish National Securities Market Commission, CNBC and through the disclosure of other regular and corporate information and on the company's corporate website, where it has remained uninterruptedly since that date and therefore, it is not necessary to read it again.

This general shareholders' meeting is chaired by Mr. Antonio Huertas Mejías in his capacity as Chairman of the Board of Directors and Secretary of the aforementioned body, myself, act as Secretary. Together, we make up the presiding committee of this general meeting.

In summary, the agenda for today's meeting includes the following items. First, approval of the annual accounts and management reports, application of results and corporate governance for the 2025 fiscal year; second, ratification and reelection of directors; third, amendment of the Articles of Association; fourth, approval of the annual report on directors' remuneration for the 2025 fiscal year; fifth, authorization for the acquisition of treasury shares; sixth, approval and payment of the dividend for shareholders at the general meeting; and seventh, delegation of powers to formalize the resolutions adopted by the general meeting.

The proposed resolutions formulated by the Board of Directors and corresponding reports have been available on the corporate website since the date of publication of the call notice. Shareholders present here who wish to vote against or abstain from any of the proposed resolutions included in the agenda must go before we finish reading the aforementioned proposals for agreement to the table located next to the first row of the room on your left, and you must identify yourselves with your national identity card before the notary so that he can record this in the minutes.

Shareholders participating via remote who wish to also vote against or abstain from voting on any of the proposed resolutions may do so until the reading of the aforementioned proposed resolutions via the Vote link on the remote assistance platform set up for this purpose on the corporate website. And in any case, I would like to inform you that we have processed the votes cast remotely and in the case of proxies, the voting intentions regarding the various proposals for resolutions, all of which will be provided to the notary.

And furthermore, I would like to remind you that shareholders who attend in person and wish to speak must identify themselves and register in advance with the notary and provide the notary with a written text of their speech, if they wish it to be recorded verbatim in the notarial minutes. Shareholders and proxies attending via remote, and who have expressed their desire to participate, must send their comments in writing via the comments link on the remote attendance platform, and this before the comment session begins, expressly stating their wish for these to be recorded in the minutes should that be the case.

All founded interventions will be read in full or in summary and answered at this general meeting or responded to in writing within 7 days of the meeting. The list of attendees has been drawn up, showing that shareholders holding shares in attendance either in person or proxy, 2.614768741 shares. So the quorum is 84.91% of the share capital. This is sufficient for the valid constitution of the general meeting on first call and to deal with all of the items on today's agenda.

So the rounded constitution of this general meeting on first call is therefore confirmed. I give the floor now to the notary, who will make the legally established statements.

Good morning. In compliance with commercial law, I ask this assembly. If there are any reservations or objections regarding the Chairman's statements concerning the number of shareholders attending the general meeting and the capital in person or by proxy. Shareholders and their representatives who wish to express reservations or objections may do so. In the case of those attending in person, by approaching my table and recording their objection. And in the case of those attending via remote by clicking on the registered objection link on the remote attendance platform.

Thank you. And next, Mr. José Jiménez Guajardo-Fajardo, Chief Financial Officer of MAPFRE will address you. And he will report on the main figures of the consolidated annual accounts for the 2025 financial year and the group's most significant achievements and projects in the economic and financial spheres during 2025.

Ladies and gentlemen, shareholders, good morning. The financial information that I'm going to refer to presented for approval at this meeting, is reported in accordance with the International Financial Reporting Standards, which is how we prepare our account as a listed company. At the end of my presentation, I will also provide you with the most relevant data in our operations under the accounting standards applicable in each country.

In any case, regardless of the criteria applied and despite the impact we've had due to currency movements, today, we are presenting premium and earning indicators that set a new historical record for MAPFRE. On the screen, you can see the 3 financial figures that represent the company's turnover. For comparison purposes, you have the insurance and reinsurance premiums, which amount to EUR 29.1 billion with a growth of 3.8%, total revenues, which amount to EUR 34.5 billion, grew by 4% and include, in addition to premiums, revenues from investments and other noninsurance activities.

As I mentioned, these 2 figures are presented under local accounting principles. Insurance service income is a figure based on International Accounting Principles, this metric, which amounts to EUR 26.35 billion, an increase of 3.3%, similar to direct insurance and accepted reinsurance premiums. Here are the key figures for 2025 under IFRS criteria in which we'd like to highlight the increase in profitability, which net profit exceeding EUR 1 billion a year for the first time in gross profit before taxes, an external partners exceeded EUR 2.5 billion. This is, therefore, a very satisfactory result that we are pleased to share with our more than 150,000 shareholders, who will receive more than EUR 500 million in 2025.

Insurance service revenues amounted to EUR 26.35 billion, thanks to the strong performance of the business and the technical measures implemented in recent years. LatAm contributed nearly EUR 9.5 billion, in line with the previous years and despite currency depreciation.

We'd like to highlight Brazil, which accounts for nearly 50% of the region's revenue. On the other hand, MAPFRE RE exceeds EUR 8.3 billion with Iberia reaching $7.8 billion with an increase of 4.8%. Finally, North America and EMEA, EMEA contributed to EUR 0.6 billion and EUR 1.3 billion, respectively.

Next, I will describe the breakdown of profits. In addition to the insurance service income that I mentioned earlier, insurance service expenses mainly include benefits and acquisition costs. And these amount to EUR 22.2 billion. Reinsurance services, which includes ceded premiums and claims and commissions income represent because of our reinsurance protection amounting to EUR 1.9 billion. These 3 items combined contribute to an insurance and reinsurance result of EUR 2.1 billion.

The net financial result amounts to EUR 1.015 billion. And other results include, among others, exchange rate differences, holding company expenses and consolidation adjustments. The aggregate effect of all these components yields a profit before taxes and minority interest of EUR 2.5 billion. After excluding taxes and allocating the profit share to shareholders, the attributable result, which is EUR 1.1 billion, 17% more than in the previous year.

These figures include the partial impairment of goodwill in Mexico and the cancellation of deferred tax assets in Italy and Germany in the third quarter, amounting to EUR 79 million. And this has no impact on MAPFRE's cash generation or solvency or its ability to pay dividends. Excluding these impacts, the result would amount to EUR 1.2 billion.

I will now comment on the main figures of the balance sheet. Total assets grew by 3.2% to EUR 58.5 billion, mainly due to the increase in investment portfolios, insurance contract liabilities, similar to technical provisions and other concepts of technical provision increased by 1.9% to EUR 40.5 billion. The investment figure was also driven by business growth and an improvement in the valuation of the portfolio.

It rose by 5.8% and reached EUR 48.2 billion. As for attributable equity, it stood at EUR 9.4 billion, an increase of 5.9%. With regard to the evolution of attributable equity, the first 2 components profit for the year-end dividend are the usual items that underpin changes in equity. The other column mainly includes changes in the value of certain investments as well as other differences for a net amount that reduces our capital figure by EUR 104 million.

In relation to return on equity, ROE stands at 12.4% and would exceed 13.3% excluding the extraordinary adjustments for the year. Here, you have the information on investments, including real estate and cash. We have a very prudent investment policy focused on liquid diversified and high-quality investments. Most of the portfolio consists of fixed income securities and similar assets accounted for more than 75% of the total. On the right is MAPFRE's position public debt with more than EUR 23 billion, of which EUR 9 billion is invested in Spanish public debt. This is the composition of the capital structure with more than EUR 13.1 billion distributed among equity, which account for 80% of the total senior debt, subordinated debt and bank debt. Debt ratio remains at a very low level. It's around 20%.

Solvency ratio based on the data from September 2025 remains at very solid levels of 210.4% more than double the minimum requirement. 84.2% of our capital is of the highest quality or Tier 1 provisional solvency data for December 2025 should not show any significant changes from those reported previously.

As I mentioned at the beginning of my presentation, allow me to make a quick overview of MAPFRE's performance in accordance with the accounting principles in force in each country. Premiums stand at EUR 29.1 billion with a growth of 3.6%. At constant exchange rates, premium would have grown at 7.8%. Total revenues are above EUR 34.5 billion.

The group's attributable profit reached EUR 1 billion, an increase of 19.6% over the previous year. This result is based on technical improvement in all regions and lines of business and this is reflected in a combined ratio of 92.2%, the best since the historical series began.

Here, you can see the distribution of premiums and evolution of combined ratios by line of businesses. Non-Life premiums amounted EUR 22.4 billion, while Life premiums approached EUR 6.7 billion with a growth of 1.5% and 11.6%, respectively, or 6% and 14.7% at constant exchange rate. All lines of business grew solidly with notable growth in life savings as a result of our strategy to boost the financial business.

In terms of combined ratios, general insurance at 80.2% performed exceptionally well with a decrease of 0.7% based on technical rigor and the absence of major catastrophic events throughout the year. But what's important here is the great stability of the last 3 years with widespread improvement in all relevant markets with Brazil being the market with the most notable technical profitability.

Automobile continues to show improvements in the ratio, and we have managed to recover profitability reaching 99.8%. We have, therefore, met our forecast of achieving technical equilibrium, which we announced a few quarters ago with improvements in all markets, but particularly in Iberia where it stood at 98.5%, 6.9% below the previous year.

Health and accidents also performed well, reaching 98.3% with Iberia at 94.2%. Finally, the life risk ratio is very stable at highly profitable levels of 85%. Overall, we have a combined ratio below 94% and therefore, improving on the target set out in the strategic plan.

I will now discuss MAPFRE's shareholding structure and stock market information. As of December 31, 2025, MAPFRE had close to 152,000 shareholders who owned more than 3 billion outstanding shares. As you know, MAPFRE's majority shareholders Fundación Mapfre with 69.7% of the capital. As a reminder, 18.7% belongs to institutional shareholders, mainly foreign while individual shareholders who represent 11.1% are almost entirely Spanish.

Finally, MAPFRE has 15 million treasury shares equivalent to 0.5% of the capital. Here, you can see MAPFRE's stock market performance. Shares ended the year at a price of EUR 4.28 per share equivalent to a market capitalization of almost EUR 13.2 billion. Last year, the share price rose by more than 75%, significantly outperforming IBEX-35 and Eurostat Insurance Index, which brings together the main insurance companies in the Eurozone. If we add the dividend yield to the stock market appreciation, the total return for your shareholders exceeds 80%. As you have seen in the first weeks of the year, we suffered a correction in line with the sector as a whole, conditioned by the geopolitical uncertainty that is significantly affecting the financial markets.

In any case, the figures that I just showed demonstrate the strength of the company and the profitability of our business model. With regard to stock market indicators, earnings per share amounted to EUR 0.37. The pare as of December 2025 was 11.6x, which means that the market has valued MAPFRE at more than 11x its annual earnings. On the other hand, the price book value ratios stood at 140%. In short, and to conclude, both under IFRS and local accounting standards, accounts show record business figures and significant progress in technical management. This allows us to face 2026 with optimism. That's all for me. Thank you very much for your attention and for the trust you place in the group.

Thank you. Thank you very much, José Luís. Thank you very much for that very interesting address. I now give the floor to Mr. José Manuel Inchausti Pérez, first Vice President of MAPFRE, who will present other relevant facts and actions of the group that took place during the 2025 financial year.

Ladies and gentlemen, shareholders, good morning. The Chief Financial Officer and Director of MAPFRE, José Luís Jiménez has presented the figures for the 2025 financial year. It is up to me to share with you a more qualitative address of what has been done. And to comment on some aspects that doubtless would explain having been able to close the year for the second time and in a row as the best in the history of MAPFRE.

All of the information is available in the documentation that has been distributed for this meeting. I'm going to share the more relevant reading. Let me start with the main engine that the company has. The human one. The ultimate recipients of everything we do are our customers. That's who we look at. But none of what has been achieved could have been achieved without the group's more than 30,500 employees and the more than 200,000 mediators, suppliers, vendors and collaborators who make our activity possible every day almost 44 countries around the world.

For those of us who work at MAPFRE, our time makes sense. We manage our people's talent through a very demanding training program that allows all employees to access at least once a year one of the modules that are taught at our corporate university, both in person on the campuses we have in Sao Paulo, Mexico and Madrid and through the online campus.

At this point, we have talent from 5 generations of employees, 86 different passionalities, who enrich the company with their experience and knowledge. This diversity is bolstered by a very intense look at all kinds of realities. We're proud that the percentage of persons with disabilities who work with us continues to grow year after year. At this point, we have already reached 4.2% of our workforce and we deem ourselves lucky to have these coworkers with us on a daily basis.

We've continued to make good progress in the onboarding of women into management positions. That percentage is 35.4%. On screen, you see the great progress achieved over the past decade. The commitment to MAPFRE's values to our culture to our way of doing things, which our customers and society so much value is evident in something that I already addressed last year but which I want to again vindicate. Half of MAPFRE's workforce in Spain are also shareholders.

And finally, and this is something that is acknowledged externally. I wanted to underscore the high percentage of employees who are committed to the company's culture, specifically, out of 10, 8 identified with our corporate purpose, which we summarized in the sentence, we take care of what matters to you.

I believe that in a record year, the effort and professional commitment of the company's human engine are MAPFRE employees, mediators, collaborators and suppliers deserve applause from the management team, and I hope also from you. We hear the applause.

Thank you. Thank you so much. So talent and diversity are without a doubt, elements that do define our workforce. But I would like to emphasize above and beyond all is our commitment to others especially those who most need us. MAPFRE's corporate volunteering program has once again registered an all-time record. Last year, more than 10,600 employees and their families generously participated in the 2,500 solidary activities that were carried out in 26 different countries. Every day, somewhere in the world, 7 MAPFRE activities have taken place involving our volunteers. And this has allowed us to reach out help more than 173,000 persons. You won't find many companies in which 1 out of every 3 employees are volunteers, and let's see them now in action.

[Presentation]

Thank you. Thank you. Thank you so much. fantastic, fantastic work. Many of these volunteer programs are carried out and they're coordinated by Fundación Mapfre, our most important shareholder. They've successfully completed its first 50 years of activity. I cannot fail to mention that each day last year, Fundación Mapfre held 80 8-0 events aimed at helping people in any 1 of the almost 30 3-0 countries where it operates. Its work has contributing to improving the lives of almost 7 million people.

As of 2022, furthermore, Fundación Mapfre is one of the very few Spanish entities selected as an intermediate body of the European Social Fund Plus. As of that date, 2 calls have been launched that have made it possible to allocate almost EUR 24 million to employment opportunities generation and to improving access to social and health services for dependent people or people with chronic diseases who reside in towns of less than 30,000 inhabitants in Spain.

This is a truly transformational project in an area where it is really essential to stay close to people and their needs in the rural world. Furthermore, Fundación Mapfre, reinforcing its location for less populated Spain and the rural world, this year launched the Iberian network of foundations. This is a parallel for initiative to structure the territory to help develop the numerous small- and medium-sized foundations that exist by the Ruta de la Plata in Spain and Portugal alike. They generate activity and value in their field of action and for different reasons, do not have all the necessary capabilities. I would like to again convey our pride in the work that has been done and continues to be done every day for half a century, 50 years at Fundación Mapfre.

Thank you. Thank you. Now the second engine of our activity is the technological motor. Technology is a fundamental pillar for us. This year, we've consolidated a strategy that reinforces our operations resilience, boost efficiency and process automation and above all, improves the customers and mediators experience. Our ecosystem of brief platforms continues to be deployed. We've onboarded new functionalities, expanded self-service capacities and promoted their implementation, which is making strong progress in Latin America and is already operational, fully or partially in countries such as Panama, Uruguay, Honduras and Spain.

I also want to highlight the constitution of technological development hubs in Brazil, Colombia and Spain, which allow us to move forward in a more coordinated and efficient way. We're also executing powerful technological transformation programs in Spain, the U.S. and Germany. No less important than Reef is our Atenea data platform. This is a highly mature solution, which allows us to extract all the value from data in our main operations while guaranteeing a safe and ethical use of artificial intelligence.

And finally, in cybersecurity, we continue to strengthen our tech system because we need to face the growing threats against our operations security, and we need to improve our resilience capacity with a comprehensive security model. In 2025, we scored 760 points in the well-known BitSight Cybersecurity Index. We improved by 40 points our 2024 score and this places us in the group of most solid financial institutions.

So in a nutshell, technology is today a key pillar to improve efficiency, strengthen group solidarity and ensure sustainable growth and long-term value creation. At MAPFRE, we remain firmly committed to excellence in each of the channels we make available to clients and intermediaries. And thus, in 2025, we've perfected our multichannel service models.

We offer agile and accessible self-managed channels as well as assisted channels that guarantee customer proximity. All these developments have allowed us to promote the digitalization of our services. We reached 70% of self-managed contracts, improving by 3 points the numbers of 2024. And as a result, our customer perception of our car insurance service has improved in most of the countries where we actually carry out this measurement activity.

The huge transformation undertaken has also allowed 2025 be the best year in history in digital business. We have 4 brands with which we operate, MAPFRE, VERTI, MAWDY and Savia. The digital business has grown by 14.6%.

Ladies and gentlemen, at the previous shareholders' meeting, I presented to you MAPFRE's artificial intelligence manifesto. This is a commitment by which, in essence, we guarantee that AI is now and will be at the service of people and not the other way around.

We continue to make progress on the internal governance framework on safeguards to ensure controlled AI at the service of our objectives. And we have committed publicly that we will not use AI to undertake workforce reductions, but to improve the capabilities of our employees and collaborators. Through our artificial intelligence center, which was created just a year ago, we've developed more than 150 use cases. That's 36% more than the previous year. 1/3 correspond to GenAI, which is aimed at improving our employees and collaborators productivity and capabilities via virtual assistance and content generation solutions.

But our goal is not only to develop their use cases, but to turn them into accelerators capable of being replicated in different countries quickly and reliably. We've also continued to roll out a global data quality strategy. We've implemented it in 28 countries by 2025. And all possible thanks to the efforts made in the fields of training and dissemination. More than 4,500 employees have received training in AI, reinforcing the group's capabilities to face the challenges that await. Everything we do in AI, tech and operations has one thing in common, our customers.

During the year, progress has continued to be made in improving CX and satisfaction as well as promoting initiatives aimed at strengthening loyalty and engagement. A key pillar has been the promotion of the use of AI with predictive models, active in different countries to strengthen retention and to promote cross-selling.

These use cases together with the promotion of data as a strategic asset have allowed us to lay the foundation to continue advancing in personalized value propositions for each one of our clients.

And now let me talk about innovation. Innovation is a key element in the development of MAPFRE. In 2025, we consolidated our innovation model, which today is a strategic lever for the company. There are already more than 5 million customers, who have benefited from innovative solutions, generating value for the business and for the customers themselves.

In 2025, we collaborated with more than 50 start-ups. That's consolidating MAPFRE's relationship with entrepreneurs in the insurance sector and our role as [ benchmark ] in the insurance innovation environment. We've made progress in key areas for the future of the sector, longevity, new social realities, climate risks, mobility, new distribution channels. And at the same time, we've innovated in life and health.

We've explored the ecosystem model for home and auto and adopted intelligent solutions to support channels and subscription. In 2025, our center for experimentation and growth, CESV map has also made significant progress in terms of safe mobility, expert analysis and the application of emerging technologies.

The third major driver at MAPFRE is sustainability. And this is a commitment that is not new. It's been taking place for decades. So despite the fact that it has been a complicated year for sustainability, we've continued to develop our ESG strategy, and we've advanced in all our public commitments providing solutions for mitigation and adaptation to climate change from the business proper. We promote actions to close the insurance gap, increase quality employment, inclusion of diverse groups and equal opportunities, among other actions.

We've met 100% of the objectives that were forecast in our sustainability plan for 2025. We've reduced the group's carbon footprint by 24%. We're now neutral in 13 countries, and more than 93% of our investments are ESG rated. We continue to work on financial and insurance education as a way to increase our citizens' knowledge of our activity.

We are very concerned about people's lack of access to insurance protection because this allows for lives and projects to be stabilized. In this regard, in 2025, we rolled out the A tu lado initiative, By Your Side, promoting the development of products and services that facilitate access to insurance for lower income segments of the population. This is an initiative, which is on offer in Colombia and Brazil, and the reception has been excellent.

Our intention is to add countries in the region because the insurance protection gap in LatAm exceeds $316 billion. Now as to our commitment to homologous suppliers with sustainability criteria, by 2025, we have reached nearly 19,400 suppliers who are qualified in accordance with ESG criteria.

Ladies and gentlemen, shareholders, you also have access to a document, Hechos para el compromiso, made for commitment, where the information I just referred to is at your disposal. And in general, also at your disposal is the work of the company, everything that we do for the benefit of our shareholders, as always collected with maximum transparency. All of these advances are increasingly better perceived and appreciated by our stakeholders. We are in most of the main indices and commitments where global companies have to be.

Let me highlight just 3 recognitions. We are in the very demanding 5% of insurers with best sustainability performance selected by S&P's Global Sustainability Yearbook. We are among the 500 most valuable brands in the world. We're the only Spanish insurance company to be included in the Brand Finance Top 500. And Merco ranking places us in the Top 5 of Most Responsible Companies in Spain. Ladies and gentlemen, shareholders, as you have seen, the magnificent evolution of the group's economic results has been accompanied by a profound transformation process, we see an improvement in the quality of service and intensive use of technology and above all, the commitment and loyalty of the persons who together are writing the history of MAPFRE.

Thank you very much for your attention and for the trust you place in us.

Thank you very much, Jose Manuel for adding that information, that very interesting vision of all of these activities, which do have very much to do with our financial activities. And the proposed resolutions have been published on the corporate website since the date of publication of the notice of meeting. However, I would like to briefly refer to some of them.

It is proposed to this general meeting that a supplementary dividend of EUR 0.11 gross per share be distributed, considering the current number of shares outstanding, the total payout for the supplementary dividend would amount to EUR 338.8 million. The interim dividend for the company's 2025 financial year paid last November was EUR 0.07 gross per share and amounted to a total of EUR 215.6 million.

Consequently, the sum of the interim and supplementary dividends for the 2025 financial year result in a gross payment of EUR 0.18 per share, 12.5% higher than that paid for the 2024 financial year. Total amount paid in dividends for the 2025 financial year of EUR 554.3 million and a payout of 51.4% in 2025. This ambitious dividend proposal has been put forward by the Board of Directors within the framework of the shareholders remuneration policy and once again, it sets a new record as it is the highest dividend in MAPFRE's history.

With regard to the compensation of the Board of Directors, my reelection as an Executive Director for new 4-year term is submitted for approval, but this general shareholders' meeting following a favorable report from the Appointments and Remuneration Committee and the Board of Directors. In addition, the reelection of Ms. María del Pilar Perales Viscasillas as an independent director for a new 4-year term is proposed. And on the other hand, the ratification of the appointment as independent Director of Ms. María de los Ángeles Santamaría Martín, who was appointed by co-optation on June 25, 2025, with effect from October 30 of said year and her reelection to that position for a period of 4 years as well. These last 2 proposals have been submitted to the Board of Directors by the Appointments and Remuneration Committee.

Thirdly, it is proposed to amend bylaws in order to, among other purposes, reflect a commitment made by the Board of Directors that more than half of its members will be independent as has been the case in the company for some time now, clarify that all external directors, regardless of whether they previously held executive positions will have the same term limit on the Board of Directors. This is 3 years or 12 consecutive years from the day they become external directors and also includes certain clarifications and other formal improvements.

It is also proposed to renew the authorization granted to the Board of Directors for the derivative acquisition of the company's own shares. And now -- and based on the good governance regulation published by CNMV. For the first time, the annual year on -- in accordance with the recommendations of the code of good governance for listed companies by the CNMV, I would like to mention that for the first annual report and directors' remuneration and the annual corporate governance report has been prepared in a freely designed format to make them easier to read and reinforce transparency of the company's corporate governance.

The second of these documents described in details the thorough incentive reviews and update of the corporate governance system carried out by the Board of Directors, in line with MAPFRE's commitment to best practices and good governance, business ethics and social responsibility. Secondly, and with regard to the monitoring of the recommendations of the good governance code for 2025, the company complied with 56 out of the 60 recommendations applicable there to 2 more than in the previous years. This represents a compliance rate of over 93%.

And now I will explain the reasons why MAPFRE didn't fully comply with 4 of the recommendations of the aforementioned code in the fiscal year 2025. First, with regard to recommendation 34, the company complies with the entire recommendation except for the attribution of powers to the Coordinating Director. For example, that the one that has to do with coordinating the succession of the Chairman, a function that is attributed to the appointment of Remuneration Committee and secondly, maintaining contact with investors and shareholders as the Board of Directors itself is responsible for establishing and supervising appropriate mechanisms for communication and relations with them and may delegate these powers to its committees or to its President as well as to the executives, professionals or other internal bodies deemed appropriate for such purpose. The company considers that this provides a coordination of the relationship of the company with its investors and advisers.

And secondly, regarding recommendation 48 on the existence of separate appointments and remuneration committees, MAPFRE considers it appropriate to keep the powers relating to appointments and remuneration together in the same committee. As these matters are closely linked and because the knowledge and experience of the current members in the appointments of Remuneration Committee are ideal for analyzing both aspects jointly.

Third, with regard to Recommendation 62 on directors holding shares, options or financial instruments from the remuneration systems for a minimum of 3 years. MAPFRE considers the obligation to hold the shares for a maximum period of 2 years to be adequate and sufficient as the delivery of the shares is also subject to a 60% deferral over a period of 3 years by third parties. Finally, with regard to Recommendation 64 on payments for the termination or expiration of directors' contracts, the termination of the position of Executive Directors entails the lifting of the suspension of the relationship prior to their appointment as such.

For this reason, if this prior relationship is terminated early, compensation shall be payable in accordance with the provisions of the workers statute for cases of unfair dismissal unless there is a justified cause for dismissal. In the case of some executive directors, who have employment contracts prior to December 2012, and therefore, well before the formulation of this recommendation, the code of good governance for listed companies, the compensation could be greater than 2 years salary. In the case of external directors, there is no compensation as a result of termination of office.

In accordance with the provisions of the regulations contained in the General Shareholders' Meeting. We will now open the floor for comments from attendees who have requested to speak. We kindly ask shareholders to limit their comments to the 5 minutes that were established in the regulation in order to facilitate the progress of the meeting. At this point, 3 attendees have asked to take the floor, and there are no remote requests. These persons will speak in order and since there are no interventions online, they will read them as they are called. Once we have concluded all these interventions, we will provide the clarifications or information that are requested that are necessary. And if we cannot answer any of their questions, they will be replied in writing within 7 days. So I now give the floor to Mr. Don Luis [indiscernible]. He has requested the floor.

Good day. Mr. Chair, this is the final year of the company's strategic plan. What can we expect from MAPFRE in 2026? What is MAPFRE's longer-term ambition? Another question is, as Mr. Jiménez pointed out, doubtless geopolitical realities now is going to have an effect on companies and on the economy in the future. What is MAPFRE's exposure level? What is the company doing to prepare itself in the face of these potential difficulties? And finally, business indicators for 2025 are positive practically with regards to all of the activities and territories that are included in the MAPFRE sphere. So what would you say our priority if you're thinking about possible acquisitions or possible disinvestment?

Let me answer Don Luis by saying thank you. And let me assure you that we will respond at the end of all of the questions being posed. Now Don Jesus Fernandes.

My question has to do with the change in the status. But I just heard you, sir, and I think that you've already answered. But I would like to say congratulations to all of you for the periodical meetings that you schedule with small shareholders. Thank you for continuing to call those meetings because we feel closer to society, to the company and to shareholders.

Let me answer Don Jesus. Thank you. I'm happy to hear that you agree that we've given sufficient explanation regarding changes in the status. The modifications really are not substantial. And especially thank you. Thank you for acknowledging the hard work that we are, in fact, carrying out because we do want to be closer to as many shareholders as possible. Shareholders, of course, who want to meet up with our experts, with our management above and beyond the yearly GSM because, yes, we do want to be closer to you, and we do want to have an ongoing relationship. I think you're all aware of the fact that this is what this Board wants to achieve. We want to be there. We want to facilitate that active participation throughout the year. We want to have that very close working, if you will, relationship shareholders with management of the company. So thank you. Thank you indeed sir. Thank you very much. And rest assured that we will continue to do our utmost. Thank you. Third, shareholder, Rolando Alberto Ortega Guterres has a question to ask.

Mr. Chair, all of the directors who have addressed us have talked about 2025 and they've set a magnificent year, record-breaking results. What are the engines that you would define as structural? So the lesser claims, lesser catastrophes. What part of the growth is sustainable when we think about '26 and '27? And finally, I would appreciate it very much sir if you could forecast whether MAPFRE is thinking about changing in view of AI and in view of the appearance of new tech players? Or do you think the company is going to be adjusting its payroll on the basis, in fact, of AI?

Thank you, sir. I now am going to respond to those 2 questions that have been made. I would like to thank you, gentlemen, for having addressed these issues. You asked about the strategy of group. I think that I will be addressing these issues afterwards, of course, during my closing session, but let me just provide an initial quick response to your question. So what can we expect of MAPFRE in 2026? Well, we don't have a crystal ball to gaze into. Do we? We'll be talking afterwards about the complexities of our reality. The reality of the setting. Yes, of course, we had addressed that in our end-of-year analysis when we were preparing for 2026.

But in any case, I would like to assure you that MAPFRE is strong. MAPFRE, as we've explained on repeated occasions, we do believe that MAPFRE is at a point in time in which insurance activity and MAPFRE activity, the world over is nicely balanced, nicely diversified and enjoys an excellent development of our technical capability. So all I can do is say that my forecast is for a good 2026. But of course, yes, we do have to keep the circumstances in mind, and I'll go into that afterwards. As to the long term as to the future. Well, of course, it's affected by the short term. And what is happening now in some parts of the world, what's happening now, as I say, is I can only define as unforeseeable. We don't have information as to what is going to happen not only to MAPFRE, but to the insurance activity in general and economic reality in Spain and over the rest of the world.

But I would want to assure you that MAPFRE is looking at a 3-year horizon. This is, in fact, a year in which we will have to think about what we will be addressing in next year's GSM. We will have to have that additional 3-year plan and we will have to onboard on that, those essential elements that are characteristic of MAPFRE. First, we are benchmark. I think we are a benchmark company in the world. We are important in Spain, but we are huge in Latin America and in other parts of the world as well. And we also are very, very active in the field of reinsurance of major risks, which ensures that we are very close to that privileged spot that group of 10 leading insurance companies in the world, Top 10. And a part of that excellent group, as I say, of leading insurance companies in the world. We are in that group, and we want to continue to be not only profitable but also efficient. We are profitable. We are efficient and anything we do along those lines with every single one of the contributions, technology and transformation and the commitment of our teams, all of that is what allows us to continue to evolve and continue to improve that efficiency because at the end of the day, it is the customer who most benefits if the products and the services are good and at affordable prices, frankly. I think it's also important to address another issue. This is a thought which the Board devotes time to. This is an issue that management focuses on.

And it is continue to work with solid business partners. We want to have more business partners the world over. We want to have more allies, all manner of allies. Allies who will help us add value and who, in turn, will also benefit from what MAPFRE has to offer. This is absolutely essential if you think about what MAPFRE is keen to do in the upcoming years. And to -- and to wrap up these thoughts that I'm sharing with you, I think that we are different. We are a social group that is committed and engaged. We worry about people. We keep people as I say, top of mind. We want to continue to be responsible, sustainably and in a committed manner with the environment. As to how we may be affected by everything that is changing in our environment in our setting.

Well, as our CFO has just shared with us, we know where we are geographically, and we know that we leave a footprint that is more than satisfactory. We're very happy. We feel that we are doing what we need to do in the geographies where we have a presence.

Of course, this will be condition forward-looking by the settings that we are witnessed to and the realities that we are witnessed to, but MAPFRE is a company that I really believe can aspire to more. We want to be more present in other markets, but we have to be fully aware of the moment and of the circumstances that we find ourselves in.

We've often enough explained what our geographical ambitions are. We want to continue to grow and wait, of course, the United States, of course, Brazil, of course, Mexico and a couple of other countries as well. And we want to further bolster the presence and activities that the group already carries out.

I think it's not just wanting to be bigger. We do want to be bigger because we're ambitious. But what we want is better results and even greater degrees of accountability.

As to MAPFRE's exposure levels and how we get ourselves in the face of these realities that affect us. Well, doubtless, we have tracked on a daily basis with concern and accessing information, thoughts and contributions of ideas and thoughts and studies that we receive from our different business areas, but also those that we receive from our own studies service, MAPFRE economics, the technical analysis of those different exposure levels. And I can assure you that in those areas where conflict rages in the Middle East at this point in time, our activities are minimal there.

We have no insurance presence there, and our reassurance activity in that part of the world is tiny. I would actually say practically nonexistent and we're talking about major risk. Yes, technical decisions have had to be taken, but they're standard when there are conflicts that rage. So war is explicitly excluded from insurance contracts. And those exclusions are further bolstered when there's a new area which was not in conflict, where there was no war that would be the Gulf in this case, the Middle East in this case, which is suddenly, well, we see a flare-up and conflict rages and thus, those coverages are no longer in force. So we believe that in the short term, if you think about the conflict that rages now, I do not foresee major exposure levels. In any case, the group is active. The group is comprehensive in its assessment and definitely any decision taken will be taken in a very focused way.

And my final series of thoughts addressing Mr. [indiscernible] comments geographical areas that are priority. Well, I think I've already answered because I did say that basically, we're looking at offsetting and achieving that balance. We've said this on previous occasions. We also want to limit our exposure to currency. We are global. We operate in a multiplicity of different currencies. We have a strong business presence in the Eurozone, and we are also exposed in the dollar and the Brazilian real. And then there are very many other very volatile. Well, the dollar has been volatile this year, interestingly enough, and so have other currencies from other countries. So we've seen that very important effect as Mr. Jiménez warned us up, we see our activities in euros, and that's why we'd like to invest more in other parts of the world where the currency is a little bit more solid, more robust. I'm not going to make any specific statement because this is not something we're looking to achieve immediately. But in any case we do believe that there are areas where more growth can happen. So we need to think about partners, we need to think about distribution channels, partners in Spain. We need to think about banking in Spain and Latin America in order to offset that lesser component of our life sector in Latin America, I repeat. And I'll make a reference to this afterwards, the advisory services which in Spain, fundamentally, but also in Brazil and in other countries, yes, that is a chapter that we're looking at.

We're going to continue to be cautious because it's a difficult setting, but our diversified model, we believe, is one that guarantees sufficient safety and security to strike that balance. We will be able to overcome those difficulties that we witness now and which in the future will have us rebuilding our presence, our activity in some products that may be affected because of the side effects, if you will, of the conflict because we're not directly involved.

But possible inflation hike or changes in rates. Well, that definitely would affect us in our decision taking when we think about strategies. And then there was that other question. I believe that Mr. Jesus had said that we had provided an answer to that already. And I would then address Mr. Ortega Gutierez's comments. He shares his thoughts and he poses 3 questions specifically. One of the questions is how to structure the results and what are we thinking we will be seeing in our activities to be carried out after this year.

I think that's the first part. I can say -- I do say actually that practically everything is structural. When we talk about the underlying result, that solid platform, well, it's very much a presence. Even in the most difficult times during past crisis, remember the financial crisis in 2008, which lasted until 2018, 2019, the pandemic and the underlying consequences, which have trailed until about 2 years ago. And then situations that have come to the surface over the past 24 months because of geopolitics, which in turn result from the protectionist and tariffary activities carried out by some governments. Well, this has definitely affected our economic activities and consumption. But we have been steadfast. Of course, there have been times when we've been stronger when we've been weaker because of interest rates.

But in any case, in MAPFRE, the underlying has been very solid. And this, I think, is what would explain the strength of the factors, which will continue to add value to the developments and progress to be achieved by our group. Yes, I acknowledge that we work in the insurance field and insurance is equal to risks and you cannot forecast risks, you can try to quantify. You can try to fine tune the information, but it's very difficult to really say I'm spot on, especially more straightforward risks. Well, those -- we do feel able with our prudent policy and in view of our reserves, we can have a forecast as to what will be happening. And that we heard about the IFRS model that our colleague addressed. We can forecast foreseeable losses for the upcoming years. So that's discounted and that is what allows us to forecast what the earnings are going to be. The results are going to be very solid.

But there are other types of risks, which are extremely difficult to forecast. That is the nature of the beast as I say and I'm talking about catastrophes, which basically affect reinsurance and major global risks. These are 2 very, very important units for MAPFRE. And we see there the catastrophes is important. But when we talk about protection, everyone of our companies, I think is well prepared.

We've seen this over the past 3 decades. There have been huge events. Some have been weather-based, others have been the result of earthquakes or floods that have affected the real estate in some countries, but we've been very, very solid. And we have proven that despite the fact that these were one-offs, we are well prepared. Last year in February, if you remember, the California wildfires, that was the most important fire of human kind, over $50 billion were the damages in California. MAPFRE RE, MAPFRE Reinsurance had a stake of a very important stake but definitely, definitely the unit's results were not threatened. And you saw that in 2025, that's been the most solid ever. I think that when we talk about structural, well, we can talk about technical development and the discipline itself, disciplined in the way we manage capital. And our solvency, you saw that is x2, our commitment diversification. Diversification, we've been talking about it, which is always -- so very, very important because insurance calls for diversification. It's the mutualization of risk. It is stretching out the dissemination in order to guarantee the further sustainability of the insurance activities. And here, yes, I can say that MAPFRE and there's no doubt about this, is the Spanish insurance company that is most diversifiable. And therefore, the one that is most protected in the face of potential future nonstructural events that might happen in the upcoming years. So I think that it's fair to say that, yes, there is sustainability. And yes, if we think about fiscal years '26 and '27 to answer the shareholders' question. I don't think that we should anticipate major changes in our earnings or in our results that would reflect any possible impairment. No, I think that it will be improvements rather, that will allow us to guarantee the furtherance of those results.

Now as to growth, well, volatility of currency is very important, and our hard commercial work is tremendous in every single one of the units in the different geographies. When we see the information in euros, it doesn't seem to be that brilliant, but I can say that growing customers in most of the country definitely is. And finally, a very interesting question, which I think Mr. Inchausti referred to when addressing AI, the -- the sudden appearance, we have been flooded by AI. Citizens have taken to AI. Organizations have taken to AI. And we, at MAPFRE, are doing everything we can also to onboard it on to our daily lives and how this is going to change our traditional wallet. Well, in February, before we talked about our earnings, there was a news in the world, where a little startup, a Spanish startup promised or hinted at major disruptions taking place in the distribution of insurances because there was an AI tool that would practically eliminate intermediaries. So it would no longer be necessary to have your mediator involved. Well, what can I say. Oh contrary, AI actually is going to be the most useful tool possible to make inclusion possible. It's going to help companies, of course, do better, more efficient, but it's going to be essential for mediators, for brokers, for our people, it's going to make their lives easier because it's going to be a tool that will allow for the integration of that relationship with customers and something that we did say when journalists asked and this was when we met also with analysts, they asked about this as well, and they've interpreted that interpretation, a very positive take and a very exciting one also, if you think about insurance activities in upcoming years.

In the world, there are very many geographical areas that we know very well in Latin America and in other parts of the world, many geographies where it's very, very difficult to reach out to your possible clients. There's limited income, there's vulnerability. There's the fact that mediators, traditional mediators, lack of productivity and trying to reach out to distribute the product because these products have a tiny premium with a tiny fee, which means that most of that premium actually would have to go to the mediator and not to the client. And that is, of course, the entity that we need to protect the client. So there's areas where there is exclusion, not because we want for those areas to exist, but because they're very difficult to access those parts of the populations that are not well served by insurance companies. Well, I think that artificial intelligence is a tool. And with tools such as this, reinsurance companies are going to be able to penetrate into those population. People, populations who don't have an easy access to insurance products and services. So with tiny, tiny, practically nonexistent fees and with very, very streamlined, very lean fees, everything is going to be very automated, but we will be able to guarantee massive relevant coverage to those people, to those populations who live in settings where that vulnerability is a fact of their lives. And we know that those populations are also very much vulnerable to natural events.

That's what we see, and that's what we believe would substantially transform inclusion technology, as Internet showed us and mobile telephony showed us, well, it made it very easy for those populations to access financial transactions -- digitize financial transactions. I think the time has come now for us to be digitized as well. Thanks to these tools. And this is why I can say that we embrace artificial intelligence. We're very excited about it, and we're onboarding it, as Mr. Inchausti already advanced in our platforms, in our services and reaching out to customers because we believe that in many of these countries, we are going to be able to make it possible for millions of people to access insurance services that are essential for persons to be able to have trust and see a reduction in future uncertainties. I think that we have provided answers to the questions posed by the shareholders who have posed them. So I think that now we are going to vote. We will put the proposed resolutions to the vote at the general meeting, and I'm happy now to give the floor to the Secretary.

Thank you to determine the outcome of the votes and the proposed resolutions included in the agenda of this meeting, we will use the negative deduction system, whereby shareholders who do not expressly vote against or abstain from voting will be deemed to have voted in favor of each proposed resolution. The full text of the proposed resolutions submitted to this meeting has been made available to all shareholders is the day of the call and deliver to the notary public. Therefore, given their length, I will read the proposed resolutions in a summarized way. As indicated earlier, once the reading of the aforementioned resolutions has been completed, the voting period will be closed. First item for the agenda, annual accounts management reports, application of results and corporate governance. The following matters will be submitted separately under this Item 1, approval of the individual and consolidated annual accounting management reports for the year 2025. Two, approval of the consolidated nonfinancial information statement and sustainability, information of MAPFRE SA and its subsidiaries for the 2025 financial year.

Three, approval of the following proposal for the allocation of profits and distribution of dividends for 2025. The profit for the financial year amounts to a total of EUR 655.7 million, of which EUR 554.3 million would be allocated to dividends and EUR 101.4 million will be retained earnings. Four, approval of the management of the Board of Directors in the 2025 financial year. Second item on the agenda, fortification and reelection of the following directors. Reelection of Mr. Antonio Huertas Mejías as Executive Director; election of Ms. María del Pilar Perales Viscasillas as Independent Director; three, ratification of the appointment of Ms. María de los Ángeles Santamaría Martín ín appointed by co-optation and reelection as an Independent Director.

Third item on the agenda, amendment of the bylaws with 3 proposed amendments as set out in the notice of the meeting being put to a separate vote. Fourth item on the agenda, approval of the annual report on directors' remuneration for 2025. Fifth item on the agenda, authorization for the Board of Directors to acquire treasury shares. Sixth item on the agenda, approval and payment of the dividend for shareholders at the GSM. Seventh item on the agenda, delegation of powers for the interpretation, correction, supplementation, execution, implementation and formalization of the resolutions adopted by the GSM.

The voting period is now closed. Both remote votes and in the case of the allegations, the vote and intentions regarding the various proposed resolutions put forward by the Board of Directors have been duly processed, and the results will be provided to the notary. In view of the available data, it has been verified that all the proposed resolutions for related by the Board of Directors have received a favorable vote of a number of shares that is in -- that, in all cases, exceeds the majority required by law, the bylaws and the regulations of the general shareholders meeting further approval.

Notwithstanding the agreement regarding the dividend participation in item 6 of the agenda despite obtaining a favorable vote of over 98.5% of social capital here and today will not take place as the condition for explain has not been meant that is reaching 85%. Therefore, this dividend shall not be paid as per the agenda. I therefore declare all the proposals for resolutions put forward by the Board of Directors to be approved. The results of the vote will be published on the corporate website within the legally established period. On behalf of the Board of Directors, I would like to thank you for your trust.

Ladies and gentlemen, shareholders, I would like to begin by thanking you for attending this general shareholders' meeting of MAPFRE SA, which we have presented the company's accounts for 2025, among other matters and for the trust that you have once again placed in us by voting overwhelmingly in favor of all the proposals submitted by the Board of Directors to this meeting. And my thanks also go to those who are participating online.

I would like to highlight and express my special gratitude for the high turnout of MAPFRE shareholders at this general meeting, in which for the first time, we have reached 84.93% of attendance. This has been spectacular. And this encourages us to keep us working and boosting all the measures for promoting participation and engagement with shareholders in order to gain their support and trust.

2025 has been once again a significant year, a historic year for MAPFRE. We have, once again, comfortably exceeded our best figures in terms of turnover and results. These achievements are not the result of inertia, but rather a direct and unquestionable reflection of the strength of our business model. The strict and rigorous technical discipline that we've implemented in all markets and the enormous robustness provided by our geographic and product diversification.

We have reached these heights by navigating once again a global scenario that has not been without complexity. 2025 took place against a backdrop of moderate global economic growth and was heavily influenced by persistent geopolitical volatility and uncertainty. We've witnessed international trade affected by growing tensions, protectionist measures and tariff policies that have slowed global supply chains and generated caution capital markets.

From a macroeconomic perspective, inflation, which severely affected sectors margins in recent years has continued on a downward path towards stabilization. However, pressure still persists in many economies that have experienced sharp currency devaluations in Latin America and then the U.S. dollar, the Turkish lira, among other currencies. But as you know, all this changed since February 28th.

We are now, once again, facing a period of maximum uncertainty, both regarding the scope of the conflict in the Middle East and its economic and social consequences. I said this earlier, but for your peace of mind, our direct exposure in the region is minimal. What we do have are some reinsurance commitments, which are logical for a reinsurer that is amongst the 15th largest in the world.

From the outset, we have activated all the business protection mechanisms to manage this type of situation. And we have limited coverage or eliminated coverage as stipulated in the contracts in event of military conflict. Additionally, as we said earlier, our solid and diversified business model is the best guarantee to deal with such adverse scenarios.

But we will remain attentive to the resulting economic impacts, mainly the resulting increases in inflation to quickly adopt the appropriate technical decisions to protect business. As usual, our main focus is on people. On those who are immersed in and suffering from open conflicts in different parts of the world and we would like to send our message of solidarity and commitment to all of them and call for a swift resolution to all of these conflicts.

With regard to the 2025 financial year, it's also fair to recognize that we are going through a favorable period for the insurance industry. It is worth mentioning that our business last year benefited from more favorable global financial conditions, the stabilization of interest rates at high levels in certain geographical areas, strengthened our financial income directly benefiting our life savings business and our investment portfolios.

In addition, 2025 has been more benign for the insurance industry in terms of catastrophic claims and natural events. However, we continue to monitor with caution the increase in the frequency of medium intensity events, what experts call secondary perils, which we are able to keep under control things to our sophisticated underwriting and risk modeling. You already saw it in 2025, we achieved record revenues of just over EUR 34.5 billion with solid growth of 4% premiums also exceeded EUR 29 billion and grew by 3.6%. For the first time in MAPFRE's history, we exceeded the EUR 1 billion mark in net profit and gross profit before taxes and external partners stood at over EUR 2.4 billion. This is also the highest figure ever recorded by our group in its nearly 100-year history.

Ladies and gentlemen, at MAPFRE, we see the company as an ecosystem of shared value. And that value is meaningless if success does not benefit those who place their trust in us. This extraordinary evolution in profitability and cash generation of our operations gives us the necessary space to increase, as has been the case for the fifth consecutive time in the last 3 years, shareholder remuneration in the last year, this year, shareholders will receive the highest dividend ever. This supplementary dividend of EUR 0.11 gross per share will be paid out. Thus the total dividend charge to the result of this record year will reach EUR 0.18 per share. This means that we will allocate EUR 554 million entirely in cash this year to remunerate our shareholders view of the results. This figure represents strict compliance with our payout policy exceeding 51% of our profit. To put this corporation's remuneration effort into perspective, in the last 5 years, MAPFRE has paid out almost EUR 2.3 billion in dividends, therefore, strengthening the net worth and income of the families and investors that support us.

Before delving into the technical analysis of the business areas, it is imperative to reflect on a significant milestone that took place at the beginning of the year and one that will shape our commercial feature and image. The launch, as you can see everywhere of our revamped global brand. This new visual identity is not merely an aesthetic redesign. It is the embodiment of the enormous silent transformation that the company has undergone over the last decade. It projects to the market what we are today, a global, agile, technologically advanced company, but above all, an essentially human company. Our new brand represents who we are and how we do things.

We are honest, clear and transparent and we are solid, customer-faced company always standing by society. The response from our stakeholders has been very positive, and this has helped us even further to connect more emotionally with our audience. This renewal is not just about the image. It will essentially be a direct lever for commercial growth, talent attraction and competitive differentiation.

[Presentation]

Thank you. Thank you, really, because we see this every day at MAPFRE, and I think that our audience, our clients, our partners and of course, you shareholders feel what we feel. This was something that was needed and this is now the new MAPFRE. Now let's analyze how the strategy has translated into tangible realities around the world, and this is beyond figures. I'll start with Iberia that is Spain and Portugal. Commercial and technical deployment has been magnificent. In this area for the first time in history, we've exceeded the historic barrier of EUR 10 billion in premiums with vigorous double-digit growth.

This milestone means that we have achieved the volume target that we have -- we had set ourselves through the end of the strategic cycle that will end in 2026 this year. And not only in terms of volume, but we have obtained a very significant profit that underpins Iberia as the best of stability in the group. The most notable management milestone, as was mentioned earlier, has been fulfilling our progress to return the motor line to technical profitability through strict underwriting, the use of advanced analytics to adjust rates and improved efficiency and claims control. We managed to clean up the portfolio while maintaining service excellence. In this same segment, our digital subsidiary, VERTI has had its best year since its founding 15 years ago, setting records in both premium volume and net profit.

Momentum does not stop there. In the business segment, we have consolidated our leadership as the leading insurer in the productive sector, growing vigorously, but the real takeoff has been in the life business with exceptional growth that has allowed us to exceed the EUR 3 billion mark, driven by savings and wealth planning solutions that our revamped specialized networks have rolled out with enormous success among our customers.

In addition, our 2 banking partnerships with Banco Santander in auto and SME insurance with Bankinter in life and pension insurance have continued to develop at a good pace with strong growth and results. Portugal has also shown very good growth and profitability, consolidating its position as the fastest-growing entity in its local market for the third consecutive year.

MAPFRE in Spain is unanimous with capillarity and proximity. While the financial and general insurance business tends towards the personalization physical retreat, we are swimming against the type because we believe in personal advice. Therefore, we are continuing with our ambitious plan to open more offices. And in 2025, we opened 138 of them. We currently have 3,200 offices in Iberia and Peninsula, which allow us to be very close to all our clients. And moreover, we are committed to major strategic alliances to diversify our distributions, notably 2 exclusive agreement with Carrefour, which will make our insurance offering available to the more than 10 million members of its loyalty club.

Furthermore, we are continuing to develop our ambitious system plan, which will lay out the foundations for a profound technological renewal in Spain over the coming years. We have also continued with a comprehensive digitization plan and proof of its success can be seen in the high rate of self management and customers, which now exceeds 76%. In Spain and looking ahead to 2026, we have set ourselves a goal of leveraging the capabilities and grow faster than the market. And to do so, we're implementing 3 major changes in our day-to-day operations of more customer-oriented organizations in terms of objectives and processes. New, more agile and accessible regional network structure that simplifies decision making, and a profound transformational areas to strengthen our leadership. In the Life business, we want to consolidate our position as leaders in financial planning. For this, we will continue to expand our offering in savings and risk products, which will be differentiated, and we will launch joint plan with our dear partner Abante, a leader in wealth management, which will allow us to offer our customers a comprehensive service in the management of their savings and investments.

And auto insurance once profitability has been achieved, we will promote our mobility ecosystem that integrates financing, protection and management services. And we will also develop similar services for home and health insurance. All of them tailored to the needs of each segment and strongly supported by our digital capabilities.

But before turning to other geographic areas and businesses, I must also mention the significant commercial boost that we expect from our sports sponsorships. As you know, we are already supporting the 2 most popular competitions in Latin America and Spain. In Latin America, the CONMEBOL LIBERTADORES and in Spain, the COPA del REY MAPFRE. We expanded this collaboration by also sponsoring the Spanish National Soccer team, which will increase our visibility and strengthen our brand. For the upcoming 2026 World Cup will be there and also up to 2030 in that World Cup.

And now let's go to our beer region of Latin America. Latin America continues to prove that it's a vibrant and strategically central region for the group. Despite persistent challenge posed by what has been mentioned earlier, the currency volatility of technical performance and local management have been outstanding, and this has a lot to maintain the region as the second largest contributor to the group's profit globally.

Brazil's performance deserves the highest trading operating in a challenging macroeconomic environment with very high interest rates that are stifling lending and slowing down related lines of business, such as life risk and agricultural insurance, our subsidiary has given a less resilience of technical precision. And as a result, Brazil has also reported the highest profit in its history. This record is based on superb technical control, achieving an extraordinary combined ratio that positions the operations, a global benchmark supported by high financial income.

BRASILSEG, a company operated with our strategic partner, Banco Do Brasil continues to prove one of the most successful and profitable assurance alliances in the continent. By 2036, macroeconomic expectations in Brazil are more favorable with a gradual reduction in interest rate and a recovery in credit forecast. Well, there may be a slowdown in this reduction. Therefore, MAPFRE's strategy in the country will focus primarily on maintaining market leadership while ensuring technical rigor and profitability. We will continue to consolidate our clear multichannel strategy, expanding the broker base and strengthening the bank's distribution mechanisms in order to improve the customer experience and the support of new technologies.

In the rest of the region, underwriting rigor has allowed us to absorb extraordinary external impact. Mexico commercial dynamics have been overwhelming, growing solidly above the market, supported by our extensive network of agents and operational development. However, the accounting result in Mexico this year, was directly reduced by an unforeseen change in the tax framework that eliminated the deductibility of the VAT tax on benefits. An impact that had it not occurred, would have revealed stronger operating results.

Similarly, Colombia. Transformation of the operating model and the high quality of the issues have yielded excellent technical margins. However, we were forced last December to make accounting provisions for the impact of extraordinary increase of almost 24% in the minimum wage decreed by the government and this had a direct impact on the mathematical reserves of the energy portfolios, which have been in runoff for several years but we keep on managing. But leaving aside this systemic impact, the underlying Colombian operation is highly profitable.

And we have also rewritten history in Peru, an operation characterized by its continued excellence. In 2025, it not only maintained admirable combined ratios, but also surpassed its premium record and posted the highest net profit since we began operating in the Andean country. Operations in Central America, the Dominican Republic, Chile and Uruguay also reported consistent improvements in efficiency and service quality with good results and contributed very positively to the regional balance sheet.

We approached '26 in Latin America on an extremely solid basis with technical indicators at optimal levels. We will continue consolidating the initiatives of our strategic plan, standardizing our processes so that we can strengthen our multi-country platforms, which will allow us to generate consistent improvements in efficiency and quality of service and technical sophistication, which are, of course, essential if we are to continue growing in competitive environments. And to this end, we're lucky because we have the valuable support of strategic partners in the region. Grupo Financiero BHD and the Dominican Republic, where recently Banco Internacional, the Chile or Mibanco in Peru. These allowances that allow us to strengthen each other and develop long-term projects.

I would also note the development in several North American countries of a business plan with a purpose of gaining more market in those segments of SMEs basically and which is being very successful, thanks to our geographical presence, our distribution channels and very important, our own proprietary reinsurance capacity.

North America, again, a fantastic year. After a 2-year period characterized by inflationary pressure on repairs and component costs, the strong execution of our strategic plan, which truly focused on qualified underwriting, operational restructuring and tariff adjustment has radically transformed our P&L. As a result of this severe discipline, the region has achieved the highest benefits, highest profits in the last 10 years.

In the U.S., our priority has not been growth for growth's sake, but rather the reconstruct of the margin. And we have expanded the use of advanced analytical tools for much more accurate pricing. And we have continued with an aggressive structural efficiency project, which seeks the automation of repetitive processes, and we will see the beginning of this year, the development of general insurance for companies.

Puerto Rico, for its part, has continued to prove its very great strength, maintaining an excellent value contribution through better diversification towards non-catastrophic lines. So the focus of both markets for '26 will be in that strengthening growth, trying to maintain the levels of profitability already achieved.

Now as to the EMEA region, we need to underscore clear technical improvement back to profitability after the negative cycle in motor insurance. Germany and Italy have implemented strict roadworthiness plans and structural cost reductions that are helping to reduce their combined ratios. In the case of Italy, we furthermore have new sources of production, which are helping diversify the business. In Turkey, our in-depth knowledge of managing environments with very high volatility and hyperinflation has allowed us to combine rigor with financial returns and thus maintain profitability. Malta, as usual, has delivered formidable results, fantastic, thanks to the leadership shared with our Banco Valletta strategic partner.

And the international cloud of our global units has proven to be differential. MAPFRE RE, which is the backbone of our protection capacity has had a brilliant year, backed by a market environment that called for solvency and capacity and thanks to the absence of catastrophic events of great intensity, the unit has also achieved an all-time record in terms of profits. This is the result of extreme prudence, quality of capital and an impeccable reserves policy. MAPFRE RE's global leadership is recognized the world over climbing positions year after year and this year, entering the global Top 10 of NMG reinsurance brands. This is a ranking that is built on the valuation of its customers, consolidating them as 12th reinsurer in the world according to MAPFRE Economics, the second in the world. And we continue to expand. We recently announced the opening of a new branch in the dynamic Indian market, which joins those already operating in the Asian region, going from China to Malaysia, including the Philippines, Japan and Singapore. All of this allows us to face 2026 at MAPFRE RE with the ambition of maintaining sustained growth in premiums and results in a very competitive reinsurance environment, one in which prices trend down. To this end technical disciplines will be even more essential in this demanding market cycle and will be key to sustaining high profitability levels. But we need to add our multiple efficiency transformation and innovation initiatives, which will allow us to be more agile and further reinforce our clear differentiation in the market.

The global risk unit protective shield of large multinationals has again proved impeccable technical solvency in a competitive market, again, achieving magnificent results with an excellent combined ratio. In 2026, it will again strengthen its growth levers based on the development of the business in LatAm through the Bogota office, attracting multinationals that are not MAPFRE customers in the region and in the development of cyber protection programs, employee benefits and parametric insurance.

MAWDY now, our reformulated assistance and services unit, strengthens the structural recovery by solidly improving technical margins. Its value proposition advances unstoppably, thanks to open integration models and B2B agreements. The most outstanding is the execution of a strategic alliance in Italy with Vittoria Assicurazioni, which opens up very promising growth prospects in addition to a more digital and renewed offer in assisted services in LatAm.

And finally, Solunion, our joint venture expert in credit and surety insurance has also completed a brilliant year with excellent growth and great results. I remind you, the company has a presence in 16 countries, and it is a multinational. And its strategy on strengthening its leadership positions, increasing its offer and consolidating its presence in the markets, also strongly boosting surety insurance.

And as to Life, the achievements of this year have been superlative. We have successfully deployed our plan in [indiscernible] in LatAm, including Brazil, Colombia, Mexico, Peru, Uruguay and Panama. And just recently, we've onboarded the Dominican Republic in Chile. All of this supported by the strengthening of our networks of specialized mediators. And an example would be the success of Media Club, over 9,000 agents duly registered acting as a differential element to retain the best commercial talent. And we've also applied a rigorous technical control that allows us to improve the profitability of the combined life risk ratio.

We've launched a very innovative project, the analysis of a group of nearly 4 million Ibero-American residents in Spain to design a difference in transnational value proposition to which we will add the capacity of services that MAWDY provides us. We're eager to diversify and to be there for our clients at all stages of their existence in life. And the strategy of our life and asset and wealth management businesses is becoming increasingly important in our group's growth. In 2025, we've taken important steps along these lines. I'd like to highlight the strategy that the group is deploying in order to become a benchmark in financial planning.

You'll see that we have an unbeatable proposal with the 3Ps in Spanish for any type of client, P for protection protección, P for Pension pensión, P for assets patrimonio. We complement our usual positioning as an insurer with the best financial solutions, so savings, investment and retirement solutions. And this strategy is paying off.

The volume of assets under management by the group is in excess of EUR 48 billion with a robust increase of 6%. MAPFRE Gestión Patrimonial has been a ballmark of this success. We've increased turnover by more than 28% and currently offering through 13, 1-3 specialized offices.

So ladies and gentlemen, shareholders, the extraordinary financial results that I just shared would not be sustainable over time or if not for the intense structural transformation that is taking place in the operational bowels, if you will, of our organization.

From the tech side, our Vice President talked about the access and success of our Global Reef platform. It's unstoppable. It's designed to unify and scale our core capabilities in Latin America and in strategic areas of Spain, laying the foundations for modern and multi-country portfolio management. And we've talked also about the importance of artificial intelligence. You've seen that this is not new to MAPFRE. But I would say that in the market, in the activity, our humanistic vision of this technology, which has allowed us to publicly state our formal commitment to support all of our employees. And especially, this is important, our employees, our employees in our tech transition, so that everyone can have opportunities in this world in which human and artificial natural intelligence will coexist so that the processes of professional retraining and support to perform new tasks be a reality for all because we believe that the best AI is the one that multiplies the value of people while making the company more productive, more efficient and allows it to be closer to its people. We don't want less employees. We want better employees.

As you will have seen, we have undertaken a significant process to review and update MAPFRE's corporate governance system and strict line with the objectives set forth by this Board and ratified by this GSM. As you will know, one of the fundamental lines of this process has been the active promotion of the involvement of our shareholders. To achieve this purpose on this occasion, we made a significant additional effort. We prepared all of the background information, all the documentation, which was made available to you on the occasion of this meeting in order to achieve maximum clarity and transparency in the explanations provided to shareholders on the key aspects of our governance and remuneration. And thus, it is worth highlighting as a milestone that for the first time, we've prepared in free format, the annual corporate governance report and the annual report on Directors' remuneration. This initiative, we believe, allows us to take a step forward in our communication in line with best practices in this area, presenting our information in a way that significantly increases both clarity and accessibility.

Ladies and gentlemen, shareholders, we face the completion of our current strategic plan 2024-2026. This plan was incepted to gain flexibility, provide us with efficiency and, above all, recover adequate profitability in a disciplined and sustainable manner. After exhaustively reviewing the financial and compliance indicators, the verdict stance, the degree of execution and success of this plan is outstanding. At constant exchange rates, we would also be meeting growth. And as you can see, we have exceeded the target range of our ROE, and we've compressed the combined ratio well beyond what we promised in our commitments. And you all know that we have fulfilled our public commitments in terms of sustainability. We heard our Vice President just a few minutes ago.

But I would like to take advantage of the fact that we're together here at this GSM because I want to update, as always, the public commitments of our strategic plan for this last year of validity. As I said at the beginning of the speech, the upheavals that markets and the price of oil have been suffering in recent days make it very difficult to forecast what is going to happen in upcoming months. Yes, we have great confidence in our resilience in the face of extreme tensions, but the evolution of inflation, interest rates and sufficient availability of energy and raw material supply will mark the economic pulse of the year, and this will depend on the length and intensity of the conflict in the Middle East. For this reason, we assume the commitments that I'm going to spell out, but with the necessary precautions that I've also just indicated.

So first, we have decided to maintain our commitment to a growth level of about 6%, but we must nuance that in view of the persistent volatility of currencies, which is, of course, greatly affected by current geopolitics. We add the clarification of measuring them at constant exchange rates. This was not foreseen in the plan originally because this will allow us to faithfully reflect the true commercial vigor and underlying development of our business, isolating the exogenous effects of the currencies involved.

Secondly, and with regards to our profitability, we aim for our ROE to be above 13% during the year. And in the same way, we adjusted and improved our combined ratio target range. We want to place it between 93% and 94% structurally consolidating the excellent operational and technical efficiency of this last year. Both the ROE and the combined ratio will be conditioned by inflation, if substantially increased would force to dampen or moderate our forecast.

I also want to strongly underscore the fact that we keep the rest of the financial, strategic and transformational objectives are in place. We also enhanced the ambition in our sustainability commitments with tangible progress in both social impact and governance and climate transition. In short, today, we reinforce our commitments based on the rigor and solidity of our strategic plan, which continues to guide us, but at the same time, fully aware of the fact that we need to be responsible, accountable, and prudent because we do want to move forward, but the world is one that is immersed in great uncertainty. The results outlined places in an unbeatable position of institutional and financial strength. We are better prepared to face 2026 and other years. We were not aware of the persistence of a volatile macro context. MAPFRE's fundamentals thus are today more robust than ever before.

On the basis of technical profitability, profitable growth will be the absolute priority to guide our decisions in this new fiscal year. We will aggressively boost market share in those lines where our technical margins are optimal and where our operational efficiency models are already operating at peak performance. We will continue to leverage the profound cultural transformation underway, supported by the unification of workspaces and our new digital environment that great commercial momentum that our renewed and modern global brand image brings to us.

We are fully confident that despite the geopolitical uncertainties that surround us, this third year will follow the path of the first 2 years of our plan. I think there's a technical glitch with my screen.

Okay. Perfect. Thank you. I was saying then that this third year is going to follow the path of the first 2 years. MAPFRE is unstoppable as an engine of economic progress and social protection. The premium income and profit figures we have presented are the numerical language of millions of promises kept, families protected after a claim, company safe from bankruptcy. And most of all, dreams insured around the world. When we launched this plan on January 1, '24, we said that we wanted to better adapt to the environment. At that time, our market cap was approximately EUR 6 billion. At the end of the second year, it had more than doubled. It is clear that everything has changed and that this year, all companies have seen reductions since the beginning of a conflict in the Middle East, but we're resilient and we can grow profitably in complex scenarios. We've seen that in the past, and we still can.

We follow the evolution of different scenarios, and we make technical decisions to further protect our capacities and capabilities in the face of these external situations. But before I conclude, allow me to dedicate a few words with special affection to the person who has been an independent director for the past 12 years, second Vice President for Nine on our Executive Committee President of the Appointments and Remuneration Committee and member of other committees and bodies of the group. And I'm referring, of course, to our very dear Catalina Minarro. She left the Board in October last year because she completed the term established in the bylaws and in accordance with the recommendations on good corporate governance. Catalina Minarro has been with us in a long period, years with difficulties, complexities very demanding external circumstances, but she has always been at the side of the executive team, lending her experience and professional expertise to service of the group. One of the key people to be with us here. At this time, we enjoy MAPFRE's important successes. Thank you very much, Catalina. Thank you for everything, your support, your trust and your friendship.

But as you are aware, Ana Isabel Fernandez was appointed by the Board as second Vice President and President of the Appointments and Remunerations Committee. She was a member of the Board. She has been a member for the past 8 years and Ms. Fernandez will be another very important pillar to consolidate our business successes. I would like to thank you for ratifying the appointment of Ángeles Santamaría as a member of this Board of Directors. Her professional experience will be very valuable for the proper strategic evolution of our group. Thank you.

And I do not want to end this interaction without first expressing my deepest most sincere and institutional gratitude, thanks to all of our professionals, managers, employees, technical teams present all over the planet. Their talent, adaptability and hard work are MAPFRE's true competitive edge, thanks to our very vital network of mediators, delegates, brokers, strategic partners who are the human pulse of this company and especially thanks to all of your goodselves, ladies and gentlemen shareholders, your loyalty, you're staying in the capital, your constructive scrutiny and your unwavering trust are, we believe, the true foundations of our success.

We will continue to face the future with the boldness of leaders, but based on the ethical responsibility and accountability that dictates our purpose. We're a global company, but with a local heart. We sell insurance and provide services. But what we really do is we take care of people. We are with people wherever people may go. What we want is to be their best ally. Thank you very much for your attention. Thank you very much for your ongoing support and a very good afternoon to all.

Thank you very much. Thank you for your welcome and your trust and having said this, this session is officially adjourned. Thank you very much. Have a good day.

Good morning, and welcome to MAPFRE'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 us 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 the 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. You have seen, 2025 was an excellent year for MAPFRE. 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 profit, we had another record year with EUR 1.08 billion, representing an increase of almost 20%. But we must remember that gross profit exceeded EUR 2.4 billion, also representing a spectacular improvement of 20%. Premiums also reached an all-time high, exceeding EUR 29 billion, also up 20%. And we cannot forget to mention that total income, including financial income, exceeded EUR 34 billion for the first time.

We have once again outperformed all the financial targets that we updated and presented in the last AGM despite the fact that the international economic environment has affected our growth in euros. In this context, exchange 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 U.S. dollar, the Turkish lira and other Latin American currencies.

Premium grew by 3.6% in euros, but at constant exchange rates, this figure would more than double, reaching almost 8%. Non-Life, which is 3/4 of our business continues to benefit from technical improvements, growing 6% at constant exchange rates or 1.5% in euros to over EUR 22 billion. Life business is also up nearly 15% at constant exchange rates, almost 12% in euros to over EUR 6.6 billion.

The Non-Life combined ratio now stands at an excellent 92.2%, representing a decrease of more than 2 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 sharp reduction in the claim ratio to 65%. ROE stands at a healthy 12.4%. Excluding noncash one-offs in the third quarter, profit would have exceeded EUR 1.1 billion and ROE would have been over 30%.

Our capital base remains strong despite market volatility with shareholders' equity to up over 5% during the year, just shy of EUR 9 billion, and the solvency ratio was 210% at the end of September. These excellent results have enabled us to propose a final dividend of EUR 0.11 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 EUR 450 million, up 23% with significant contributions from both Life and Non-life 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 EUR 100 million and the combined ratio that has fallen by almost 7 points to 98.5%. General Non-life and Accident & Health businesses are also solid with both combined ratios around 94%.

LATAM also showed solid underlying results with a net profit of EUR 365 million. 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 EUR 270 million, an increase of 5%. North America also posted record results of nearly EUR 140 million, up 42%. The operational improvements implemented in recent years have paid off and combined ratios in the U.S. are now the best ever.

Finally, MAPFRE RE recorded a profit of EUR 381 million, up 17% with a combined ratio of 91.2% indicating that both Reinsurance and Global Risk has performed excellently with historic results.

It's true that it 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 perils 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 EUR 0.11, representing a 15.8% increase to be approved at the AGM on March 13. This is the highest dividend paid ever and the fifth consecutive increase in 3 years, bringing the total dividend against 2025 to EUR 0.18, up 12.5%. Total dividends reached EUR 454 million with a payout of 51.4%. The average dividend yield for 2025 was 4.6%. The average dividend yield for -- okay, I already said. Over the last 5 years, MAPFRE has paid out EUR 2.3 billion 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 EUR 26 billion is up over 3%. At constant exchange rates, growth is 7.6%. The net result stands at EUR 1,133 million under IFRS, EUR 54 million higher than local GAAP.

IFRS 17 had a EUR 43 million positive impact. The impact of discounting and the risk margin offset a negative impact from the loss company, which mainly affected the Life business in Colombia during the year. IFRS 9 had a positive EUR 11 million impact, the positive impact of mutual fund valuation booked in P&L offset the realized gains on equity recorded under ICI.

Shareholders' equity amounts to EUR 9.4 billion, and return on equity was 12.4% with similar trends under local GAAP. The growth CCM was EUR 2.6 billion, up almost 4% and was EUR 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 a 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 to 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 foreign 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 a 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 EUR 97 million with 2 relevant negative impact. EUR 37 million in Mexico from the change to VAT treatment for insurance companies and EUR 57 million in Colombia due to the 23% minimum wage increase, mainly affecting annuities reference to inflation. Overall, trend 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 U.S. dollar depreciation. In a record profit year, the combined ratio is down to 95.4%, improving 3 points. In EMEA, losses in Germany and Italy are down. The region is reporting its third consecutive quarter of positive numbers with a EUR 60 million profit compared to EUR 30 million in losses last year with an 8-point reduction in the combined ratio.

Regarding MAPFRE RE, in terms of growth, premiums are in line with last year. The non-group Reinsurance 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 reserve in the fourth quarter. Some of this prudence was applied to claims on a case-by-case basis. The combined ratio includes around 2.5 points of total addition reserve prudence at year-end. There has also been a one-off tax impact for around EUR 45 million in the fourth quarter due to a prudent approach related to doubling position in some Latin American countries.

MAWDY continues to contribute positively with a net result of EUR 6 million. Finally, I would like to comment that the net hyperinflation adjustment are down from EUR 60 million last year to EUR 31 million, mainly from the case of Argentina.

General P&C lines continue to benefit from disciplined technical management, solid market presence and diversification. Premiums are down, affected by the Brazilian real and the U.S. dollar. The combined ratio remained 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 reinsurance protection.

In Brazil, premiums declined 8.5% in euros, mainly due to the currency depreciation. Furthermore, agricultural insurance remained affected by high interest rates, while other retail and industrial lines experienced notable growth. The combined ratio was stable and 63% supported by Agro.

In North America, premiums are impacted by dollar depreciation while the combined rate has improved more than 5 points to 79%, supported by prior year tariff increases as well as lower weather-related claims.

Regarding Motor, 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 remained stable, in line with higher interest rates. In North America, premiums also declined due to weaker currency. Profit amounts to EUR 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 continue to deliver.

On the Life business, sorry -- that's it. On the life business, premiums are up 12% with the strong trends in Iberia and other LATAM. The Life business continues to be very profitable, adding almost EUR 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 EUR 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 rate environment, which affect lending and related Life Protection product 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 other LATAM, with not wealthy performance in Mexico growing 40%. The loss in other largely reflects the increase in the minimum wage in Colombia.

And now I will hand the floor over to Felipe to discuss the main balance sheet items.

Thank you very much, José Luis. Shareholders' equity stands at strong at over EUR 8.9 billion, up more than 5% at year-end on the back of the excellent results that we're presenting. The improved valuation of the investment portfolio offsets negative conversion differences, mainly from the U.S. dollar, which is now down nearly 12%. Leverage is below 21% at the beginning of the year. We completed a dual tranche of 6- and 10-year senior transaction for a total of EUR 1 billion with 3.125 and 3.625 coupons. Leverage would increase temporarily, but still acceptable levels until we repay the upcoming senior bond maturity in May. We don't expect any other major changes in our capital structure in the near future.

Our strong balance sheet supported by strong cash flow generation within MAPFRE Group. In 2025, EUR 900 million was upstreamed from subsidiaries, EUR 200 million higher than the previous year. Iberia remains the most important contributor with EUR 348 million. LATAM contributed EUR 300 million, including an extraordinary dividend of EUR 80 million in Brazil, corresponding to 2026, which was upstream to avoid fiscal changes that have taken effect this year. North America contributed over EUR 70 million. MAPFRE RE upstreamed almost EUR 150 million this year.

In conclusion, our sources of cash generation are solid and well diversified. Total assets under management stand at almost EUR 65 billion, growing 9% year-on-year. Third-party assets now reach over EUR 16 billion, up 20%. In Spain, we remain among the top nonbank asset managers. We maintain our commitment to being a benchmark in financing planning. In 2025, MAPFRE was among the top 5 largest players in pension plans, leading growth with a rate of 8%.

As for mutual funds, growth has been outstanding, reaching 32% year-on-year. Brazil was the main contributor to this expansion, nearly doubling assets under management throughout our local asset manager. In Spain, our own channel delivered double-digit growth with an increase of 16%, while the bancassurance channel posted a 39% increase. Our own investment portfolio amounts to EUR 48.4 billion with asset allocation stable throughout the year. It remains defensive with a focus on quality, diversification and high liquidity and with a low exposure in alternative assets.

Regarding the euro area, investment portfolio yields are up over 50 basis points at MAPFRE RE, while Iberia yields and duration are slightly down. In other markets, Brazilian portfolio yields increased over 230 basis points during the year, reaching 12.7%. In North America, yields are up -- are also up around 25 basis points to over 3.2%. Realized gains and losses are very stable, around EUR 43 million as in Non-Life financial income.

I would like to comment on a few exceptional items. In Iberia, there was a prudent accelerated amortization of intangibles, which had a EUR 24 million impact. And in North America, there was a reclassification of premium finance fees in line with market practice with around EUR 20 million impact. Financial income continues to be a tailwind, and our portfolios are well positioned to face market volatility.

I will now hand the floor over to Antonio to make a few closing remarks.

Thank you, Felipe. The close of 2025 marks the end of the second year of our 2024-2026 strategic plan. We have continued to implement a strategy focusing on growth and results. MAPFRE has continued to enhance in technical excellence, improving productivity and leveraging its potential across all markets, while transforming our business.

Referring to our financial commitments, we are very pleased with our achievements in the current plan. Over the last 2 years, average growth has been 3.1%, but at constant exchange rates, it would have been 7%, meaning we would have met our targets.

Our average ROE target for the period is 11% to 12%, excluding extraordinary items, and we reached over 13% at the year-end. Combined ratio performance was also excellent in 2025 at 92.2%, well below the target range. These financial figures are on the local accounting, but we are very much in line with IFRS metrics.

We remain highly committed to sustainability, having achieved notable improvements. We are now carbon neutral in 13 countries and improving from 10 in 2024. Over 93% of our portfolio is now ESG rated. Additionally, women now occupy 35.4% of top management positions globally.

We have strengthened our underlying profits in all geographies and products. Those excellent results are mainly due to our geographical diversification. Results in Brazil, North America and MAPFRE RE have been outstanding, reaching historic highs. And Iberia has returned to normalized results, maintaining its position as the group's leading contributor.

In addition, in terms of business development, MAPFRE continues to occupy leading positions in our main markets. The technical work carried out after the pandemic has borne fruit. We have reduced the combined ratio by more than 5 points since 2023 with improvement in technical management and disciplined underwriting, and we have increased prudence in our reserves.

In addition to all this, improving efficiency remains a strategic pillar. We maintain a strict cost control despite inflation with a stable paying ratio. Finally, it's worth highlighting the strength of our balance sheet, which has allowed us over the years to absorb extraordinary events without a significant impact on the final results.

To conclude, I would like to comment on our general expectations for 2026. First, despite a complex macroeconomic context, MAPFRE will continue to demonstrate its ability to navigate these circumstances successfully. This year, we will focus more on growth, especially in those segments where profitability has already reached acceptable levels, including Motor. In addition, the impact of currencies is expected to be more benign than in 2025.

We believe that our new brand identity launched this year will also help the business to develop. Our ambition is now also being rolled out with a new global modern and digitally connected brand. This new corporate identity strengthens our positioning in the markets, bringing us closer to our customers and other stakeholders. Despite our excellent ratios and profitability levels, we believe that we can still grow profitably, thanks to our diversified business model and the effect of the entire transformation process we are undergoing. Financial income should also continue to be a favorable factor and the portfolios are well positioned to cope with possible interest rate declines.

In conclusion, we are optimistic about MAPFRE's performance in 2026, as well we are prepared to face the challenges post by global uncertainty and the competitive insurance of reinsurance market. The dividends announced today reinforces our confidence in the future of our firm commitment to continue creating value for our shareholders.

I will now give the floor to Felipe to start the Q&A session.

Thank you very much, Antonio. Although most of you are already familiar with the process, let me quickly remind you of the details of the Q&A session. [Operator Instructions]

And we will try to answer them as time allows. The IR team, I remind you that the IR team will be available for any pending questions after the call. And before that, I would like to apologize because of the information that we provided and the CNMV that was a little bit late this morning due to a technical issue with the connection with -- to the CNMV. I mean this is something that was out of our possibilities. So it is something that we could not do anything else.

I would like to start with the floor in the room.

[Interpreted] I'm switching over to Spanish now. [Operator Instructions]

[Interpreted] Can you hear me? Great. Maria Paz Ojeda from Banco Sabadell. Well, first of all, congratulations on your performance. It's really been outstanding for the past 18 months. I have three questions. First, about the Colombia regulation changes and those in Mexico, too. What do you foresee for 2026 and the future years because these changes, I'm sure, would affect your rating, right? So any possibilities to raise premiums or prices to offset that VAT-related cost increase and the new salaries?

As for the business in North America, well, that 68% combined ratio sounds spectacular. I understand it takes support on milder weather with fewer claims. So what do you think the additional impact would be if a standard amount of weather events were to take place? And also, do you have any information on the firm storm that blew over the whole East Coast in January? And also, could you give us some flavor on the lawsuit or the differences in opinion with the AAA club vis-a-vis the contract renewal?

And another question, we see that most of the targets, both the combined ratio and return on equity are being met easily in your strategic plan into next year. So what's your perspective on whether you can go more ambitious in your targets?

[Interpreted] Okay, I will start dealing with the one-offs in Mexico and Colombia, and then José Luis will deal with the rest of your question.

Yes, certainly, these one-offs are not your usual run-of-the-mill one-offs. You come up with, as part of our business, like extreme weather events or similar circumstances leading to potential impairments or not. These circumstances are entirely out of our management's sphere. Well, in Colombia, we had the December 29 change in the salary in Mexico. We have a long-standing dispute with the Mexican tax administration, which demanded a legal review of VAT and insurance. And finally, the photo finish was that the industry negotiated with the Mexican government to get retroactive action to only 2025 and of course, from 2026 on. MAPFRE has already provisioned the total impact expected for 2025 and the expected impact for 2026.

I'm sorry, but I cannot claim for fee or premium adjustments. But as soon as possible, when we start dealing with renewals after the second quarter, we will have full view of the total impact. And we will have fully transferred this to our clients. The total impact is calculated in over $1 billion for the Mexican insurance industry. And for us, it's a limited impact, but it's still part of that price transfer that we couldn't do in 2025.

And as for the case in Colombia, the increase in minimum wage, 23% unexpected increase that affects only some specific product of life rent. And they're already in runoff in Colombia for MAPFRE. So we don't need to do much. We already have provisions to deal with this one-off, the new rates, which are after all indexed to the minimum wage. But I insist it's a runoff portfolio. So it won't have a huge impact. Well, the impact was relevant for the industry, particularly for very specific product, as I said.

And then quickly, AAA agency. We know that in late 2026, our 20-year agreement with AAA would come to an end. We knew that 20 years ago, and we've done our best to continue to be exclusive distributors for AAA. From now on, we will not be exclusive since AAA is opening an insurance company panel. The distribution capacity for AAA is very relevant, but we have a lot of capacity beyond AAA to deal with this new circumstances that affect Nordisk, mostly in Massachusetts. The fact that they've been less than compliant during the past year is truly nonrelevant. And I'm sure we will come to an agreement so that this last year of the contract will be as smooth as possible.

And then we have another agreement with another AAA, a joint venture we have in Washington and Oregon is totally unrelated because we're talking about federated separate institutions. Our joint venture for auto is growing as expected, and there's nothing to report there.

[Interpreted] As for the storms, and the U.S. Maria path, we're not aware that there are any material things to report. This is just business as usual in the United States. Right now, their temperatures are minus 10, minus 20 Celsius. So nothing new to report. We're provisioning for it. Maybe at this time of the year, some weather events might affect California, too. But we -- only time will tell. We just know that the January storms have not had any material effects, nothing that is not usual in that considering the geography.

About the performance of our strategy plan, we're more than pleased. We're over complying. It's been years of work to come to this point, and we're in a very healthy situation. However, it's too soon to tell. We would have to wait until the AGM to see if the new targets are, as you say, more demanding.

[Interpreted] I will go over one of the questions that came in online about AI. Apparently, news is broken about an intermediary who was coming to an agreement with ChatGPT and changes in the distribution considering AI. Do we consider that this agreement between Tuio and ChatGPT might become credible disruption in the insurance distribution market? That's part of the question. And what we see as the general impact of AI on our business? So in sum, how could AI affect the business? And what consequences could it have on the general insurance business?

[Interpreted] Yes, maybe a few thoughts on the matter. Certainly, we've been following the news with great interest. It does not come as a surprise because the benefits of AI for the present and the near future of all businesses are very clear. We just need to continue to integrate AI into our distribution initiatives. But that's valid not only for the insurance business. I guess many of us have been using AI to prepare a holiday or to compare pricing in other products. So AI is likely to change our lives, most likely for the better, just for simplification purposes.

I mean price comparative tables were already out there before AI. The new technology has enabled to compare prices for a long time. Obviously, AI can make things better and quicker. But dealing with distribution, well, MAPFRE is a multichannel group that works and will continue to work with all sorts of distributors. We were connected to many insurtechs that have tested different models. Well, they don't go directly into insurance because our installed capacities are beyond their means.

But anything enabling financial and insurance inclusion, particularly in markets not served by traditional mediation are welcome. A large part of the world population, even European and Spanish population don't have access to simple products just because they don't understand products that seems so simple, but it might look like they don't deserve too much explanation. Products like Life, Risk, ensuring fundamental tools, for instance, MAPFRE has been using AI for some time now. Two years ago, we were the first company to generate our own manifesto to communicate our intention to work on AI and make that connection transparent.

We contemplate a people-focused AI with the same values and principles, we have stood for in our face-to-face relationship with clients to make sure that our clients will always have a consultant mediator, a professional expert to walk them side by side and generate trust in the product. So long-live technology, and we welcome any company that can give greater access to citizens to generate better financial and insurance inclusion.

[Interpreted] If I may, Antonio, we've been reading about stock performance of companies and some reports seem exaggerated. A company in Spain with a turnover of EUR 15 million shaking long-established companies in their boots doesn't seem to make a lot of sense. Maybe if we think back, remember the Lemonade case in the U.S., it felt very disruptive only 5 years ago, and look where we are now in terms of balance sheet and return on equity. I do understand that it's loud news and the industry has grown impressively in the past year, but that's all there is.

[Interpreted] And an extension of this question. Do we expect to start selling small ticket products customized to the new possibilities, AI yields, simpler products, for instance?

[Interpreted] Well, we cannot answer that at this point. We -- like I said, we are working with several AI suppliers. We're just getting to know artificial intelligence, and we're using it for both back office and front office to offer our clients solutions that will truly have an impact on their real lives. Only in Spain, over 6 million users in Spain benefited from AI solutions to facilitate connectivity. And well, in Brazil and the United States, we have very interesting projects to keep growing that accessibility. But AI product distribution seems a little bit more distant in the future. When there's real capacity to do so in the future, we will consider it. But so far, our model remains based on being close to the ground and relying on experts because insurance products are very complicated, even the most traditional products like auto, we don't want to cheapen those products as they're enormously complicated in technical terms and in terms of third-party accountability and liability.

[Interpreted] Well, I think this answers Ivan Bokhmat's, Maks Mishyn and David Barma's questions online. Back to the room. Do we have any hands raised?

[Interpreted] Juan Pablo Lopez, from Santander. Two questions. The first one about your solvency ratio, which continues to do better and better, 8 percentage points throughout the year within your target range. So two questions. One, about the dividend. The dividend seems to keep growing, a payout of 51%. Have you, at any point, considered paying out more considering your extraordinary capital position?

And second, about potential M&As. We've seen some news in Portugal, a company that might potentially go public or bank that went dual track, they tried to go public and then finally got sold. If there were that possibility for that dual track, would you be at all interested? And could you update or are you willing to update your position on M&A? And then about Reinsurance, you come from a particularly good quarter, particularly in Non-Life. So have you released any provisions? PBT was particularly solid. And then on tax. Tax line was a little bit high this quarter. I understand there are one-offs and catch-ups. Can you shed some light on that?

[Interpreted] Well, you asked about our solvency ratio. We're pretty pleased that we're within the range of 1.75% to 2.25% established by the Board. We're approaching the top of the bracket, and we're feeling comfortable.

About the dividend, well, today, we announced a dividend of EUR 0.18, the highest paid by this company so far and that stands for 12.5% above last year's number, and it's the fifth dividend raise in the past 5 years. The message the Board has always conveyed is that if the business does better, so will the dividend. And I believe we have maintained our promise. So the outlook is positive, and I believe that for this year -- well, this year is looking good. Certainly, last year, we had some headwinds on the side of currencies and these one-offs we've been mentioning in Colombia and Mexico, which should not be recurrent. No reason to do so.

And in the case of Colombia, this was certainly a one-off. There's always been a slight scale when it comes to raising salaries. But this time, since there were Congress and presidential elections, there was a public policy decision made to raise the minimum salary above reasonable levels.

[Interpreted] And I can say something maybe about the company, which is now going to trade in the Brazilian stock market. MAPFRE is not going to invest a minority stake in a company that's going through an IPO. Just -- it's not part of our core strategy. And then as for any M&A activity, our objectives are still the same as we've said over and over, we want more potential for distribution in Spain. We want to deploy a bit more capital in Europe. And one of our goals is definitely Germany, but we won't be opening up any more markets or companies. And in LATAM, we're always looking up for opportunities in Brazil and Mexico. And in Brazil, anything that doesn't, of course, impinge upon our agreement with Banco do Brasil. And in the U.S., if we find something that could complement a single-state company, for instance, that could be complementary to our current business in the U.S.

And as for the Reinsurance topic, it's true that there is that tax impact of EUR 45 million, but that is because of an interpretation on the risk of double taxation, how that could affect Reinsurance. So we've provisioned those EUR 45 million from a purely prudential perspective.

As for the reserves, you're right that there has been some release of provisions in the fourth quarter because of two basic effects. First, as we said throughout the year, we have been preparing for a hurricane season, which looked like it was going to be much longer or later. But in the end, it was almost nonexistent. And so it didn't affect our insured footprint and so we've released those provisions in a standard way. And then we strengthened provisions relative to some case-by-case claims. What we do at the end of the year is check and see how our case-by-case claims have evolved and we provision accordingly. So the releases are not that significant in terms of MAPFRE RE's figures. We still have very solid reserves with an impact of about 2.5 points in the combined ratio because of the reinforcement of these reserves and with amazing results in 2025.

And now if you want, we can read out a question that has come in. The people who are following this online, they're asking, from Barclays, how do we expect to benefit from the reform of Solvency II?

[Interpreted] Well, I think like most of the European insurance sector, the reforms, which will come into force if everything goes according to plan in June of 2027, will have a positive impact for most insurers. In our case, we're estimating initially that it could be between 3 and 5 additional points of solvency.

[Interpreted] Thank you very much, José Luis. Another small question, which I might perhaps answer myself, if I may, because it's about Malta. They're asking about the estimated impact of storm Harry on Malta and Italy, and there probably will be some claims. Well, Malta is a country that has constantly been affected by these types of storms with winds, which are practically hurricane-forced winds and the company has sufficient financial resilience to cover such claims, and it's basically claims to do with property and house insurance near the other coast.

As for the impact of Malta for the whole group, it's really not going to have any effect because Malta's figures are solid enough to cover of all this on its own. As for Italy, mostly there's an Auto portfolio, auto affected by the storm, where cars affected by -- vehicles affected by the storm were very few. So we don't expect it to have a significant impact.

Questions from the room? Paco?

[Interpreted] Yes, I'm Francisco Riquel from Alantra. Antonio, you said that the priority for 2026 is to grow premiums, again, particularly in the Auto business. The number of policies has continued to drop in the main markets, Spain, Brazil, the U.S. How compatible is that with growing premiums profitably? Because in the case of Spain, your combined ratio for Auto is still 98.5%, which is the high end of your range. Do you think you can grow and still continue to improve profitability? And how?

And the second question about Brazil. The yield curve anticipates a fall of 500 basis points in 2 years. You've reduced the tenor of your portfolio to 1.5 years. So -- but how sustainable is Brazil's profitability in general?

[Interpreted] Okay. Paco, let me start with the part about growth. I don't know if going back to growth is the right way to put it. It's about bolstering the growth because we've always had growth in policies, in customers, not in every market, but definitely in premiums. It's true that we have seen less growth in Europe in the consolidated accounts. But in local currency, except for Brazil, all the other markets grew even above inflation, which is no longer a major concern right now. And with our forecast, we can expect it to be for the next 2 or 3 years.

Growing the number of customers is the biggest challenge, but that is our focus always, customer selection and risk selection processes as well as the market pricing we do to adjust the price to the risk we're taking on is our standard business.

Auto, of course, is the business that was under more pressure in the last 4 years because of impairment in that line. Also, Health because of sector inflation, not the general inflation, but sector inflation were significant, and it probably is still somewhat high. We know of the pressures that are present in markets because manufacturers, OEMs are exposed to that with the inflow of Chinese cars at much lower prices. And electric, EV, which are very welcome and very necessary, also have much higher prices than their equivalent combustion engine cars.

So that means that there's price on -- there's rising prices for insurance as well. But we don't contemplate seeing combined ratios in Spain or in other mature markets, like the ones we had back in the day. We trust that the combination of good customer selection, combining all their policies and other insurance needs and their MAPFRE brands make us feel that with reasonable technical profit, we can offer solutions that will make it worth their while to be in MAPFRE, where they have 2 cars, for instance, plus health insurance, plus property insurance and some life insurance products means we can be very good at pricing. The techniques we have to predict future claim rates for those customers also means that we can be very competitive and therefore, see higher growth rates for Auto in a very competitive market like Spain or Brazil or the U.S.

But in general, we're satisfied. We made some tough decisions with some fleet business and some group business to improve that combined ratio, which will nevertheless continue to improve based on our forecast, based on our pricing calculations will continue to improve slightly. In the rest of the world with a high interest rate environment, you can have combined ratios around 100% or even a bit higher without any problem.

But we are quite optimistic with regards to the growth of that segment, and we maintain our guidance in the strategic plan, although we are, of course, saying that that's for constant euros. But we do expect some tailwinds this next year with currency exchange and that both the dollar and the real and the Mexican peso might begin to recover, and that could also help drive our growth in current euros.

[Interpreted] And as for Brazil, you were asking what's going to happen with the yield curve. It's already discounting lower rates, probably around 2, 3 points for the next months. And I would start by focusing on Brazil's excellent performance last year, even though it wasn't easy because of the currency depreciation effect. But remember that at some point, even the U.S. administration levied 50% tariff on Brazil imports when it's a net exporting -- commodity exporting economy to the U.S. and other markets. But I think that very negative context last year has, I think, turned around quite quickly.

I would say that probably Latin America in general and Brazil especially could be some of the economies that will benefit the most during this year. And so I think it's what we're seeing in the forecast and reports of most of the major investment banks. Lower interest rates in Brazil would be a very positive outcome for us. Of course, maybe our investment portfolio, instead of having a gross yield of 15% might see that come down a couple of points. But the important thing is the growth of our business, particularly protection insurance, which is linked to credit. It's very difficult to sell credit when rates -- imagine if your reborrow was 15% here, very few people would ask for loans. But as rates come down, gradually, I think that will definitely drive sales. It's what we're seeing already. Our relationship with our partner, the Banco do Brasil is excellent. Our business with them is also growing very well, and we're seeing a recovery in commodity prices as well. So I think overall, this year for Brazil should be an excellent year.

[Interpreted] And I think we've answered all the questions, right, except Francisco, maybe if you want to add anything? No. Thank you very much.

I'm going to group some questions that have come in about the business in Spain. JB Capital, Maks is asking about the impact of the storms we've had this first quarter in Spain. Also asking about the target for the combined ratio in Iberia now that it's already improved and whether we will achieve a combined ratio group target with the Auto business in Iberia? And what kind of average premium hike are we implementing? And what do we expect from our policy portfolio? Do we expect it to grow or not?

[Interpreted] Okay. The storms are, of course, extremely unfortunate because they're happening one after another in some parts of the country. But luckily, in Spain, we do have one of the best systems for managing storm damage anywhere in the world since we have full coverage for everyone through the insurance compensation consortium when damage is caused by wind or flooding. And we've received about 40,000 claims in the last weeks to do with these storms and the number will continue to grow since there have been new storms coming in nonstop, although perhaps not as extreme, and they are unfortunately causing a lot of disruption in people's lives, and particularly in rural areas.

MAPFRE is already responding personally to everything that is to do water damage covered by our policies and our internal numbers are not that significant and will not really have a material impact on our P&L with the information we have so far. But again, a lot of it is going to be covered by the consortium, which as we saw in the Valencia floods worked exemplary with over EUR 5 billion damages insured covered in just a year and a bit very successfully by the consortium and with no impact on the P&L of the sector. These were contributions that we have made to the consortium over the years and which were then paid out to cover those claims. And with the flood, we've not had to raise premiums to our clients because there was enough fund in that consortium pool to cover everything, and the same will happen now.

[Interpreted] As for the other questions that Felipe summarized, I would say that, in general, for the group or for Spain, the ambition is to grow and to grow in euros. And last year, at the group level, we had this ForEx effect, but often in the currency markets, there's always a sort of regression to the mean as we're seeing in this year so far. And in Spain, the Life and the Non-Life segments are going to grow, but not at any price, of course, as we said in the strategic plan, we seek profitable growth. And so in the last few years, what we did was to adjust our portfolio sharply to go back to profitability. So reducing the combined ratio 7 points in Spain was the great achievement of this last year.

And so our ambition to grow will focus on both the digital channels, but also the offices. And we have different levers we can use to have a positive result this year. As we said at the beginning, there's the whole rebranding and how that could boost the business, but also the over 3,000 offices. It's the second largest distribution network of the financial sector in Spain, and also with a new commercial structure, which was launched on January 1 as well, which was a major challenge, in order to help simplify and improve the efficiency for clients.

And you were asking also about the Life Savings business. Yes, the strong growth, the over EUR 3 billion in premiums we've seen in Spain, will it continue? Well, we're doing everything we can to become a major actor in financial planning. And our ambition is still to grow. And to do that, apart from this network, we have over 10,000 professionals ready to advice and sell financial products, both insurers and the asset management side. And in 2026, we feel fairly optimistic.

It's true that most of our competitors, which are banks, are not really competing very aggressively in this segment, and we are very close to the customers. And we think that just like in Non-Life, a personal touch and knowing your customer is particularly important, which doesn't mean we can't use digital channels and applications, but things are perfectly compatible with hybrid models, but ultimately, like everything in life, what really matters is the human touch and having someone who knows you, who knows what you need and who can help you do the best financial planning for your own personal needs. So we are ambitious with growth in that area. And in 2026, we expect to exceed the targets of 2025.

[Interpreted] Thank you. I think that was a pretty good answer for the questions from UBS, from JB Capital, from Autonomous Research. And now we're going to move to the Reinsurance sector. There's lots of questions with respect to 2026.

What do we think will be the trend for premiums? I think we've already explained about the releasing of provisions in the year and especially about renewals in this first part of the year and what we expect for next year.

And an obvious question, which is how much have we saved or how the savings we've achieved in our reinsurance program affected our results?

[Interpreted] Yes, the early year campaign just ended. We have two, January and June. As for MAPFRE's hedging, well, most of it is about midyear and become effective in July. And then MAPFRE RE and group provisions are mostly placed in January. And yes, as expected, the market has grown rates substantially for the past 3 years, a circumstance that MAPFRE ceased to make a capital extension. And considering a benign performance of the weather, if we can call it that, we still have weather event, but perhaps in areas that have lower insuring and reinsuring effect.

So this year, reduction -- an incipient reduction is observed, not a very relevant one because it allows us to accommodate for new coverage and grow MAPFRE's appetite with the possibility to integrate purchases for second or third-party event at practically no cost. Of course, this situation generates more tension in reinsurers because they need to seek new clients and fight over the existing ones with more competitive pricing, and that will entail small reductions in performance and, of course, make our -- or generate more competitiveness amongst our reinsurance businesses. But we have a solid footprint in different markets, and we have enough commercial products that have greater possibilities for reinsurance. As a matter of fact, we have nearly automatic coverage programs facilitated by MAPFRE RE to enhance business insurance, and it actually boosts our growth.

As we have seen in the past, we haven't reached -- we haven't hit rock bottom in price terms. If large events take place next year, we will go back to previous numbers. And if we have to carry that out to clients or final consumers, we will do so with more thorough complicated products. And of course, we will work harder on our relationship with clients, but we do not see any threats on the horizon for the immediate performance of MAPFRE RE and Global RE, which may be more exposed to price reductions in certain businesses. We still have plenty of room to grow in terms of market share in several areas.

[Interpreted] Thank you. I believe that with this, we've answered Carlos Peixoto, [ Max Migliorini ], and August Marcan on MAPFRE RE.

We also have questions about Colombia. Is MAPFRE affected by the project to increase tax withholdings to nonresidents in Colombia? We have a question about Mexico. Is there any impact that carries over to next year?

I think we already talked about the nondeductibility of VAT in Auto and Health. But anything to say, José Luis?

[Interpreted] Just a reminder, in Mexico, the impact was EUR 37 million. What we did was take the impact recorded in 2025 in the last quarter last year to a possible impact on 2026 to move ahead of the impact, if you will. We are aware that the legislation in Colombia is subject to an appeal in the constitutional court, and we still don't know whether this will have an impact in the case of Colombia or in our business in Colombia.

[Interpreted] Any further questions. I can't see any raised hands in the room. There seems to be none.

We do have a question online, and it's a frequent question coming from Maks, JB Capital, about the expected combined ratio in Brazil for -- in 2026 and midterm. Well, the foundation is excellent, isn't it? Right, José Luis?

[Interpreted] Well, we always say that things need to get worse for a little bit, but they haven't. We could expect combined ratios to go up a little bit, but at a very positive level for us. Just a few points up will not affect us significantly. Certainly, during the past couple of years, we've had an absence of great disasters in Brazil. Our portfolio is highly diversified per region per crop, and we're not expecting any major events. And if that trend continues, the ratio will be positive and very profitable.

And about premiums, because we do see that premiums are more deeply affected by interest rates. Well, as we said during the presentation, we're talking about insurance policies indexed to loans. So a reduction in the interest rate for this kind of activity would be very positive. We cannot quantify the elasticity of this ratio. But in Brazil, we've seen years when levels remained around 2.5%, with strong growth and years where we've reached 15%, which is the real or the actual interest rate, the highest interest rate in the world as the Chair said during the presentation, 15%. As rates go down, well, we know that this would foster investment.

And the agricultural sector in Brazil, which is such a relevant one, and with that reduction of tariffs and the foreign policy applied by United State, I think this places the industry in a very positive position. We don't know how long it will take, but it is looking good. Also, this year, presidential elections are scheduled in Brazil, and that will probably bring a new boost to the agricultural business in Brazil.

[Interpreted] A question from [ Vicky Beata ] from Bank of America. Average premium and performance throughout the year and a possible reacceleration on Q4. And does that show a change in market conditions? Or is it rather a matter of product mix and seasonality affecting the fourth quarter? And in more general terms, they ask about pricing expectations for 2026.

I understand the question is about Spain, right, particularly the Auto business.

[Interpreted] Well, policy price is generated on a client-by-client basis based on risk profile. We're not a single channel company. Many of our clients are very satisfied with the service quality they are getting and price is not a deal breaker. Probably pricing will go above inflation to cover costs, but we do not expect any significant peaks in pricing this year now that the industry has gone back to balance, but we will continue to enhance the combined ratio as we've said a number of times.

[Interpreted] Thank you, José Luis. And about local currency premiums in the U.S. This growth we're beginning to experience, will it be supported by the number of policies or average premiums? Question by Carlos Peixoto.

[Interpreted] Well, the United States has a clear target of profitable growth, obviously, give or take currency fluctuations, but the trend we've been observing in the past few months is expected to be maintained in the near future.

[Interpreted] Thank you, José Luis. And one last question from Alessia Magni from Barclays via the app. Alessia asks whether we expect any pressure on combined ratios in any of our markets in 2026? And maybe looking forward into the future, what can we expect for 2027?

[Interpreted] Well, that's one very good question with a very difficult answer. Pressure, there will always be pressure on the combined ratio, right? Plenty of factors out there. It depends on competitors and the type of business. In reinsurance, as we said, well, there have been several years with fewer disasters, weather events, and that has led to a small adjustment in prices. But that could change in a matter of hours if anything serious happens. In other markets, at least in general, we've seen some serious ups and downs in Brazil, U.S., Spain, Germany, even Italy. But those fees have been gradually adapted to the actual cost of claims and combined ratios are stable. I cannot foresee any extra pressure anywhere, all things being equal. I mean we will probably run on inertia.

[Interpreted] At any rate, the diversification of the MAPFRE model causes general insurance and damages, insurance will affect our competitors more than it will affect us. And maybe our combined ratio could go up, but we still have margin in the Auto business, for instance where we're slightly below 100%. And I'm sure that as interest ratios go down, there will be pressure to reduce the technical ratio to maintain margins. So that diversification, that offset effect keeps us afloat. We're not optimistic -- that opportunistic to consider that 92% combined ratio will persist, but slightly above that, it's still perfectly acceptable.

There are exceptional circumstances like the agriculture insurance in Brazil that has a nonsustainable combined ratio. I'm sure drought will take place in the future. But also we expect to grow in volume because this is a year where fewest policies have been acquired in Brazil because of the incentives that the Brazilian government used to grant agricultures were removed. These subsidies, actually, kept agricultures from getting insurance. I'm sure the premiums will go back up and the combined ratio will go slightly up. But all in all, the general bottom line will remain above expected.

[Interpreted] We don't have any further questions online. Would you like to make any wrap-up comments?

[Interpreted] Well, I'd just like to thank you for following this presentation. It's been an excellent year having seen the best combined ratio ever, we say, over the last 15 years, but actually, it's the best ever since we have records as an international group. And that, I think, shows the consistency of our model. And of course, growth is always going to be the hardest thing to maintain, as you pointed out in your questions, but that's what we're focused on. And our outlook is to continue to grow organically. But of course, we could also take advantage of some M&A opportunities if they develop. Continuing with our traditional model of adding new distribution networks, banking networks to our distribution model through alliances and agreements also add additional capabilities that could help, but always, again, open to any M&A opportunity that might develop to integrate businesses that might be complementary to ours, but always in a consistent way and making sure that it's going to add value for our shareholders medium term.

We're not planning to broaden our footprint. That's clear. And the M&A priorities Felipe described are the same. But with -- but knowing we have enough financial capabilities and support from the shareholders to continue to grow in the future. But mostly, the priority is to open up new distribution networks through new agreements and alliances in bancassurance or even through retail distribution like here in Spain with Carrefour, which will now distribute MAPFRE products in our main market, our home markets.

So anyway, that's it for 2025. The AGM on March 23 in 2026, the prospects look really good, and we're working already to give you an update on our guidance during that General Shareholders' Meeting and also some indications of our new strategic plan, which will start in 2027. So anyway, I just encourage you that starting February 19, there's going to be a new beautiful exhibition in the MAPFRE Foundation next door here. Anders Zorn, who is an amazing Swedish painter, unknown in Spain, but who was known as the Swedish Sorolla and was extraordinarily important in Madrid's painting of the 19th century in Sweden. And so those of you who're following online might not have a chance to stay now for a drink and some appetizers, but the rest of you definitely invited to join us. And thank you for being here and for helping us be better every year. Thank you.

[Interpreted] Thank you very much, Antonio. I'll remind you that all the documents are posted on our website and with -- and in the CNMV's website. Thank you.

[Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]

Good morning, and welcome to MAPFRE'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 Inchausti, Vice President of MAPFRE, 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 9. [Operator Instructions] and we will open up the Q&A session at the end of the presentation.

I will now hand the floor over to José Manuel Inchausti.

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 has continued 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 U.S. dollar and Latin American currencies.

Premiums have grown 3.5%, reaching over EUR 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 EUR 17 billion. The Life business is up around 10% in euros, nearly 40% at constant exchange rates, reaching over EUR 5 billion.

The Non-life combined ratio is now 92.6%, down more than 2 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 EUR 829 million with a return on equity of 12.4%. These results includes extraordinary impacts of EUR 79 million 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 EUR 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 EUR 8.9 billion, 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 EUR 0.07 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 EUR 350 million up over 22%, thanks to its diversified business mix with the Motor result up more than EUR 80 million, consolidating its recovery. There were also strong contributions from General Property & Casualty and Accident & 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 & Health improving 4.5 points to 95%.

In Lat Am, 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 EUR 200 million, up 6% with very strong margins. In addition, Mexico, Peru and Colombia together contribute over EUR 100 million to the results. But both the Non-Life and Life businesses remain highly profitable with improvements in the combined ratio across most lines, and financial income continues to be an important tailwind. The region reported a total result of EUR 340 million, up 11%.

North America is delivering an excellent result of nearly EUR 100 million, up 40%. Technical measures continue to pay off with relevant improvements in Motor and General Property & Casualty. Finally, in MAPFRE 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 standing with a net result of EUR 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 EUR 0.07, an almost 8% increase to be paid on November 28. It was the fourth consecutive increase, bringing total dividends paid in 2025 to EUR 0.165, EUR 508 million fully in cash. This is the highest dividend ever paid in a year. During the last 5 years, MAPFRE has paid out EUR 2.3 billion to shareholders. The average dividend yield for this year is over 5% and more than 7% for the last 5 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 key trends by 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 2.5 points to 95.9%. Our investment portfolio continued to boost profit. The return on equity is now up almost 2 points to 13%.

Profitability in Lat Am has been excellent. Brazil continues to see excellent results, posting return on equity of over 27%, with improved technical ratios and high investment returns. The Non-life combined ratio is around 72%. In local currency, business volumes were down slightly with linked segment still affected by high interest rates and the macro and geopolitical context. Premiums in euros are down 11.5% with a 9-point exchange rate impact.

Other Lat Am continues to deliver strong profitability, contributing over EUR 140 million, up 19% with technical improvements across all lines, leading to a 3-point reduction in the combined ratio to 96%. Premiums have been very affected by exchange 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 3-point drag from the U.S. dollar. The combined ratio is well under 96%, improving around 3 points.

In EMEA, losses in Germany and Italy are going down significantly. The region is reporting a second consecutive quarter of positive numbers with a EUR 7 million profit, compared to almost EUR 19 million in losses last year, with a 6.5 point reduction in the combined ratio.

Regarding MAPFRE RE, José Manuel has already commented on the reserving strategy and the bottom line. In terms of growth, premiums are growing around 1%. The U.S. dollar is relevant for this business and premiums will be up over 6% at constant exchange rates. Additionally, reserve reinforcements has been around EUR 165 million year-to-date with a 5-point impact on the combined ratio, which means the ratio will have been below 90% without this one-off. MAWDY continues to contribute positively with a net result of EUR 3 million.

Lastly, I would like to address a few specific items. First, hyperinflation adjustment has improved from around EUR 47 million last year to EUR 24 million this year, mainly due to Argentina and Turkey. And second, the extraordinary impact of EUR 79 million were recorded in the holding expense line, of which EUR 38 million correspond to the partial goodwill write-down in Mexico, and the rest to derecognition of deferred taxes in Italy and Germany, with EUR 31 million and EUR 9 million, respectively. As a reminder, in September 2024, there was the partial goodwill write-down in Verti Germany for EUR 90 million as well as extraordinary income of EUR 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 remained 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 reinsurance protection.

In Brazil, premiums declined 10% in euros, while the drop in local currency was just 1%. Agro insurance is still affected by high interest rates as well as the geopolitical and macroeconomic situation, while other retail and industrial lines are experienced 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 2 points to 83% during a traditionally quiet quarter weather-wise.

Regarding Motor, the third quarter confirmed previous trends with significant advance in most market. The combined ratio is now below 100% with around a 5-point improvement year-on-year. The net result is almost EUR 96 million compared to EUR 70 million in losses last year. In Iberia, the combined ratio has improved over 6 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 EUR 80 million, reaching EUR 52 million compared to losses last year.

In Brazil, premiums are down mainly due to the currency depreciation. The combined ratio remained stable, in line with higher interest rates. Performance has been a standing in North America with a EUR 52 million profit, almost double compared to last year, with the combined ratio down more than 3 points. Regarding the regions, in other Lat Am, almost all units are now reporting combined ratios below 100%. In EMEA, the combined ratio is also down 8 points from around 120% to 112%. In conclusion, technical management remains solid and the measures implemented continue paying off.

Regarding the Life business, premiums are up almost 10% with strong trends in Iberia and other Lat Am, especially Mexico. Furthermore, the Life business is very profitable, adding EUR 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 EUR 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 2 points year-on-year. Regarding the rest of the countries, volumes were up almost 16%, led by over Lat Am, 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.

Thank you, José Luis. Shareholders' equity stands strong at over EUR 8.9 billion, up 5% during the year on the back of the excellent results we are reporting. The improved valuation of the available-for-sale portfolio offsets the negative currency conversion differences, mainly from the U.S. dollar, which is down 12% year-to-date. Leverage is at 21%, reflecting our disciplined approach to capital and debt management.

Regarding our capital structure, we don't expect any major changes in the near future. The upcoming maturity of our senior bond in May 2026 will most likely be refinanced by senior debt. We hope to go to market sometime early 2026.

Total assets under management stand at more than EUR 63 billion. Third-party assets, which are now over EUR 15 billion are up more than 14% with outstanding performance in Brazil. We maintain our position as one of the leading non-bank players in the asset management business. Our own investment portfolio amounts to EUR 47.5 billion with asset allocation stable. We remain convinced that our portfolio's defensive nature, focus on quality and diversification and high liquidity is well prepared to face market volatility.

On the top left, you can see our main fixed income portfolios. Regarding the euro area, duration is down year-to-date, but relatively stable on the quarter and portfolio yields overall are slightly higher. In other markets, portfolio yields in Brazil substantially increased nearly 240 basis points year-to-date, reaching 12.7%. In other Lat Am, yields are stable, while they are moving up in North America.

On the bottom left, you can see Non-Life net financial income is up around 9%. Other Lat Am continues to be affected by Argentina, where investment returns are lower than prior years, which is offsetting the hyperinflation adjustments, which are also lower. On the right, you can see net financial gains at around EUR 29 million. Iberia remains the largest contributor, the majority coming from Non-Life.

Now I will hand the floor over to José Manuel to make a few closing remarks.

Before moving on to the Q&A, I would like to reiterate that we continue consolidating significant improvements across all regions and business lines, especially in the Motor business. This is thanks to one of our strongest assets, our high level of diversification, both by geography and by product, which not only mitigates risks but allow us to leverage opportunities. We continue executing our strategic initiatives with focus on profitable growth and continuous technical improvements as we move forward in our internal transformation. Financial income is still a relevant tailwind, and our balance sheet remains resilient. Despite the geopolitical and macroeconomic uncertainty, we have a very positive outlook. We are prepared to face the headwinds from currency depreciation, inflation and economic slowdown, and we are confident in the direction we are heading in. The increased interim dividend we announced this morning is proof of that.

In conclusion, these solid results are proof of the strength of MAPFRE's business model, our ability to adapt in a constantly changing environment and our ongoing commitment to profitability, solvency and a client focus. These achievements allow us to be optimistic about the coming years, continue with the prudent approach that define us.

I will now hand the floor over to Leandra to begin the Q&A.

Thank you, José Manuel. Although most of you are already familiar with the process [Operator Instructions] And now let's start with the first question.

We've received several questions surrounding the reinsurance business. Juan Pablo Lopez from Banco Santander would like to ask if there's been any impact from the recent hurricanes in the Caribbean.

Okay. And thanks for your question, Juan Pablo. To be honest to you, I mean, the impact so far is negligible. And we have to say that MAPFRE has no exposure to Cuba and Jamaica. And in the case of Global, it's a minimum exposure that probably it wouldn't affect the result.

We've also received several questions regarding the reserve strengthening at MAPFRE RE during the quarter. Maks Mishyn would like to know what was behind these reserves? And Alessia would like us to quantify the impact, both at 9 months and on the third quarter stand-alone and what businesses they affected, if they affected any particular line of business?

Okay. I would say that probably following our prudent approach to reserving, I mean, we have reserve reinforcements has been around EUR 165 million year-to-date, which means more or less a 5-point impact on the combined ratio. Otherwise, it would have been below 90% without this one-off. In terms of the quarter, last quarter, we did a reserve around EUR 60 million.

Thank you. Paz Ojeda also would like to know if we've finished with this reserve strengthening or will this continue in the coming quarters?

Probably, I think it's too soon to say. I mean we are just in the middle of the hurricane season. Apart we have all the kind of NatCat events that could happen at any time around the world. So I would say that until the 1st of January is quite difficult to comment. But of course, I mean, we are prudent by nature. And if we think that there is secondary price increase or whatever it could happen, we are more on the prudent side.

Thank you, José Luis. Maks also had a question regarding our outlook for the fourth quarter. As we've seen that the hurricane season remains mild. If that continues into the fourth quarter, what could we expect from an underlying combined ratio?

Once again, I would say it's too difficult to say. Hopefully, the quarter could end as it has started. But during the last few weeks, we have Melissa and everything was a little bit concerned. Finally, it's not a big issue. But still, we have to deal with the end of October and November.

Thank you. Moving on to another topic, still MAPFRE RE. Juan Pablo from Banco Santander asked about the loss ratio, which he said was very low in the quarter. Was there any release or extraordinary impact? And he also asked for the expense ratio, which has increased quarter-on-quarter. And is wondering if there's been any other extraordinary impacts in either of these lines.

Well, as we have mentioned before, there is no release at all. It's the other way around. We have reserve reinforcements as we have pointed out. Maybe the good figures come from low NatCat events during the quarter. And regarding the expenses, it's just the profit sharing adjustment that we have in some policies that explains the difference.

Thank you. We have one last question from Maks Mishyn regarding the reinsurance business. In particular, he's asking about the profitability of the Life business. I believe there may have been some volatility on the quarter, although this is a business that tends to have high volatility.

There is as well -- I mean, the reserves as well in the Life business has been reinforced during the year. And we can mention that the Life business, which is an area that we want to grow in the future, has been observed and developed in a very prudent way. So this is what we may expect on the year. I mean we are looking at this business very closely. And I think that year-on-year, it evolves quite swiftly.

Great. Thank you. We're going to move on to the next block of questions. Moving on to Iberia. Juan Pablo from Banco Santander has some questions regarding the Motor gross written premiums that are growing 3% versus the sector, which is growing around 9% and that we've seen some loss of policyholders during the quarter. How do you see the competitive environment? Are you expecting an inflection point in terms of market share in the short term?

Okay. The first thing is that MAPFRE Iberia has dropped 6 points, its combined ratio in Motor insurance, which was the main objective. And now it's in a good 98.5%. That was the first objective, and we were very focused on profitability. Once -- and in spite of that, the growth is 3%. It's true that it's less than the market. It is still a positive growth of 3%. In the next quarters, once we have improved, I would say, radically the combined ratio, we will be a little bit more focused on growth, not only in premiums, but in insured units.

Regarding the market, what we could say is that the market has entered in a very soft market in the motor insurance in Spain, but we will be more dependent on our technical results than these movements in the market.

We've also received some questions that affect more the General P&C line. The first one is from Paz Ojeda, Bank Sabadell. She mentions that it's been a quite benign year in general for weather -- from a weather event point of view. And that it seems -- or she'd like to know what part of the improvement in the combined ratio in General P&C is due to this very benign weather environment.

I mean there's definitely some kind of impact of this benign weather. I mean this is something that we are experiencing lately. It is true that General P&C has as well other exposures that are affecting the situation. And once again, we want to mention that there is a very prudent approach on the reserving of this line of business. So even though this prudent approach that we are taking, we are still posting excellent combined ratios, and we should continue if nothing happens otherwise.

Thank you, Felipe. Moving on also into General P&C. Maks Mishyn from JB Capital would like to know what has been the impact of the wildfires in Spain on your claims during the quarter?

I will say that despite the tragedy of these wildfires, we all have in mind those images about the countryside, small village and the fire and so on. We have to say that many of these properties were not insured and probably the impact will be negligible on the accounts.

Great. Thank you. Moving back to Motor. We've received several questions, which I'm actually going to summarize, I think, from a few analysts. I think in general, the question is, number one, what can we expect for the combined ratio in Motor in the coming quarters? And number two, what -- how do we feel about this slowdown in premium growth? And do we think this can also improve in the coming quarters?

What I would say is that the combined ratio in MAPFRE is -- Motor insurance is 99.6%, which is a good improvement over 5 points over the last year, and it will continue improving in the next quarters. Growth has been 2.3%, affected by exchange rates, and it should be better in the next quarter as well.

And Maks Mishyn has a follow-up question on that, and he'd like to know what type of tariff increases are you implementing in Motor? And when do you expect to normalize churn and start growing the client portfolio?

Well, in this case, I mean, we -- as we have said in different presentations, the premium, I mean, the increase in target is more related to inflation to cover the cost slightly above inflation. But it's true that during the last quarters, I mean, year-to-date, we prefer to come back to profit and to resolve the crisis on the Auto business. Right now, I think we are in a very good position to try to put the focus on growing in terms of customers, and that's where we are focused for the coming quarters.

Thank you. We're moving on to the Iberia Life business. Barclays -- Alessia, Barclays commented that Life gross written premiums came down by 17% in the third quarter. Can you please give us some details of the drivers of why the business volumes in Life came down between the third and the second quarter?

Linear growth in Life Savings, I mean, it's not regular. I mean we cannot share the same amount every quarter. So it is true that during the first and the second quarter, we have a real extraordinary growth. Probably the third quarter has been more flat. But as well, we have plans. You all know, we try to become a leader on financial planning in the Spanish market. We have more than 3,000 branches, more than 10,000 people specialized in Life Savings, and we are really focused in continue growing on the coming quarters.

Thank you. We have two more questions or one more, I believe, for Iberia. Juan Pablo from Banco Santander. He asks why financial income was down and would like to know if we can expect a stabilization at the current levels.

At the group level, I mean, financial income has grown around 9%, if I'm not wrong, with the figure. In the case of Iberia, it is true that we have to come back to last year because last year, we sold a real estate property, and we did an important capital gain. But we have to say that we expect a stabilization even maybe why not increasing a bit the financial income. I think that the book yield is something that probably can continue growing slightly.

And it is true as well that this year, we have less capital gains compared to last year despite the incredible performance on the financial markets. But we are not -- we have no concern about that. And probably we believe it could be a tailwind in the coming quarters.

Thank you. We have one additional question in Iberia, General P&C. The combined ratio performed very well, down again during this quarter. And Juan Pablo from Banco Santander would like to know, has there been anything extraordinary or a release of provisions?

As I said before, I mean, General P&C is performing extremely well. There was no release during the quarter. There was -- in fact, it was otherwise. I mean, we were preparing for having a very benign quarter to have some reinforcement of reserves in this line of business as well. So things are performing well, and this is nothing extraordinary that we should mention.

Thank you. Well, we finished with Iberia. And in case -- unless there's any follow-up questions, we're moving on to Brazil.

Our first question is from Juan Pablo at Banco Santander, and he's asking about growth. He comments that we're seeing a fall in gross written premiums. What is our outlook for this business? And what is the impact from the struggling Agro business in Brazil?

Well, in the case of Brazil, we have to say, I would say, several things. The first one is that the business is performing extremely well and results are growing another quarter. It is true that we have an important headwind there, which is the high interest rates. The Selic right now is around 50%. And where you are selling insurance product linked to credit, it's quite difficult to grow in such market conditions. I would say, the good news is that probably next year, we have elections in Brazil. Inflation is coming down, very close to the target of the Central Bank. And we believe it could be reasonable to think that probably interest rates could come down in Brazil significantly.

In the short term, we have the advantage, we have the pros of high interest rates for our investment portfolio. In fact, the book yield of the investment portfolio has increased almost 3 percentage points, which is not bad. But on the other hand, it's suffering a bit in terms of premium growth. Next year, we could see a reverse on this function. So probably we have lower interest rates. We expect to see more premiums coming for the business. So we are optimistic about the future of the business in Brazil.

Thank you. Following up on the Agro business, well, I would say the combined ratio in general, Non-Life, which is very much supported by Agro. Juan Pablo from Santander asks, your combined ratio increased quarter-on-quarter after a very strong second quarter. In the past, you mentioned you expected a lower structural combined ratio in Brazil. Could you update us on the structural level around mid-70s combined ratio?

I think 70s is a wonderful combined ratio, and we would like to see that ratio in many of the business. And it doesn't matter from one quarter to another, it moved slightly up. I mean, if I remember properly, second quarter was around 68%. Right now, it's 71%. I'll be more than happy to see 71% for the coming future. But this is an extraordinary business for us. I think we think we have a quite competitive advantage in the marketplace. And it doesn't matter if the combined ratio moves around the 70s up or down. So we are very happy with that.

Thank you. Regarding the Life business in Brazil, is there any -- there's been a fall year-on-year in the premiums. Is there any reason different to ForEx? And how do you see the trend of the Life Protection business going forward?

I mean as José Luis has mentioned already, I mean, this is very much related with interest rates. Selic at 15% is a deterrent on the increasing of the credit in the market. We should expect that if -- as José Luis mentioned, we are going to have lower Selic during the next year. There will be an increase of lending in Brazil that will help us to increase the level of premiums on the market. I mean there is as well the FX that has been affecting us. But I mean, I think that all in all, I think that there is a solid position on the Life Protection business that will continue during the next year.

Moving on to the rest of Latin America. On a similar note, Life business is actually doing quite well and growing year-on-year, but the P&C business seems to be a little weaker. Is there any other reason, again, different from foreign exchange? What are the trends you're seeing in Non-Life in the rest of Latin America outside of Brazil?

As we have pointed out before, I mean, high interest rates is really a driver of this, in the sense, it's quite difficult to sell insurance linked to credit. And it is the same trend in Mexico, it could be in Colombia and Peru. As we have a more positive view regarding interest rates in the future, we have seen this week as the Fed has reduced by 25 basis points and probably this could continue in the coming months. So this could help as well that Latin American central banks could review as well rates. So this is a very good trend for the business.

Apart from that, I mean, we have the FX effect. But once again, we tend to believe this has stabilized so far. And in the last, I would say, 2 months, we have seen how some Latin American currencies has strength rather than deteriorate compared to previous quarters. And so far, year-to-date, we see a slight appreciation on the real, a slight appreciation on the Mexican peso. So I don't know, I think probably this mean reversion probably could affect us positively from now till next year.

Thank you. We're going to move on to North America. We've received so far, two -- one question. Juan Pablo from Santander would like to know why is the combined ratio so low in P&C? Were there any release provisions? Or was it weather-related?

No. I mean not release provision at all. It's just probably this part of the year is probably the best in the U.S. in terms of weather-related events, but also all the hard work that our colleagues has done there in terms of efficiency, in terms of operational effectiveness and so on. But the weather has helped a bit, but we continue with the good trends of previous quarters.

Thank you. We're going to move on to a few questions we received regarding the balance sheet strengthening that took place with some extraordinary impacts this quarter. We received a question from Antoine at AlphaValue. He would like us to give some background information regarding the goodwill write-down in Mexico. How is this business performing? And what would have been the combined ratio in Lat Am, excluding Mexico?

I don't have a figure about Lat Am, excluding Mexico. I mean we can send it the answer to you after. I mean it's going to be very detailed.

Regarding the write-down in Mexico, I think that we need to be aware on what kind of transaction we were looking for in this area. We wanted to have -- to increase the network that we had in order to distribute better and reaching more the client in the Life business. In this case, I think that the acquisition of a network of more than 4,000 agents and related distributors of Life business is an extremely good acquisition.

The thing is that the business that was on back of it, this was -- there was something that we need to revise, review and to challenge in order to provide with sound information on this business. This is the reason about this partial write-down that we did in the goodwill in Mexico. That is part of it that has been preserved, because we think -- that we continue thinking that the business should be profitable. There will be a lot of cross-selling that is not included in this goodwill that is going to be captured from Mexico.

And once again, this is part of the very prudent approach that we have from the balance sheet, and this is going to be the same approach that we have on the reinforcement of reserves and looking at a very strong balance sheet for the future of MAPFRE.

And just to follow up, we're looking at the combined ratios for the region and Mexico's combined ratio is very much in line with the total of other Lat Am. So there's no large difference in the profitability across the region versus Mexico. Thank you.

We received another question coming from Paz Ojeda, Bank Sabadell. And she'd like to know what risks do we have remaining for additional write-downs in intangibles, including goodwill, deferred tax assets or value of business acquired across the different subsidiaries that the group has?

I think that we look always as a very conservative -- with a very conservative eye all those intangibles assets that we have. When we are looking at them, we have a very strong and very strict approach on how we analyze it. It is true that the goodwill that we have in the market are right now associated mainly to very strong operations. And I think that, that is something that has been seen in the past. I mean, they're related with very strong businesses.

But we are going to continue looking at the opportunity of approaching this with the most prudent way in a manner that things are going to be on the reinforcement of the balance sheet. There is nothing in the short term that let us know -- let us think that we should continue with this -- with any kind of write-down. But I mean, in any case, we are going to continue looking at each of every -- and every line of the balance sheet in order to take the most prudent approach that has been taken in the last years.

Thank you, Felipe. Moving on, we have a question surrounding the dividend. Juan Pablo from Santander asks, we've seen your solvency ratio improved to 209% compared to 206% last quarter. This is the figure we have at the end of June. This is quite comfortable above the midpoint of your target range of 200% with a 25-point leeway. Could we expect any increase of dividend payment -- payout -- excuse me, of dividend payout?

What I have to say just -- and then I will let José Luis speak about the solvency ratio. Any decision about dividend payout is taken by the Board and they must be approved by the AGM. So that will be the procedure.

Well, regarding the solvency ratio, I mean, we are really happy with the level that we have achieved, 209%, which is in line with the margin that has been set out by the AGM, by the Board of Directors. And nothing to comment. I mean, probably if the trends continue, we could keep within that range on the high end. And probably, we are looking forward to continue with such a strong balance sheet.

Thank you, José Luis. We're going to move on. We have 2 more questions. The next one is regarding M&A coming again from -- sorry, from Banco Santander. He'd just like an update on what are our M&A plans and our strategy going forward.

Mean there's no change in the strategy. We already mentioned that we have capacity to display more capital, but I think that we are not in a hurry right now. We are looking at any opportunity. There is nothing on the desk that we should look for a very immediate closing or in the next months.

The opportunities that we are looking at or that we are looking with a very close attention are related with, of course, with Spain that we want to increase our distribution power on the country, mainly for the -- trying to rebuild the bancassurance agreements that we had in the past and try to distribute better on the Life business.

On the -- we should be keen on displaying more capital in the euro area, and we need to bear in mind that the only country mainly that we could do it would be Germany. Italy could be an opportunity, but I mean, it's mainly Germany on this side.

If we look at Lat Am, I think that there are two economies that are the focus of our M&A strategy. First, Brazil. And we are looking for any opportunity that could help us to increase our importance there. It is important to mention that we don't need -- we don't want to jeopardize in any case our very good agreement with Banco do Brasil. So we will be very careful in this area And of course, Mexico, which is a country that is in the long term, very linked to the U.S. economy and is the second biggest economy in Lat Am.

Looking at the U.S., I mean, we could think about some company that will present some business that will make a complement to the one that we are distributing already in Massachusetts, which is mainly Homeowners and Motor, and try to look for an opportunity in a single state company that could help us to try to put a foot on another state that could help us to start developing mainly this new line of business in the area that we are already present or the Motor and Health -- or Motor and Home that we are already doing very well in Massachusetts in this other state.

I mean those are the main points that we want to increase. I mean, the areas where we want to deploy more capital will be, I mean, on top of, of course, Motor agreements, distribution agreements, Life business, which is one of our priorities. I mean, I think that there is nothing that changed from the past. So the same kind of strategy and nothing on the short term for the moment.

Thank you, Felipe. And moving on to our final question. Juan Pablo from Banco Santander has commented that our latest guidance in terms of ROE and combined ratio looks a little out of date. And do we plan to update these targets anytime soon?

As I said before, our current guidance was adopted in coherence with the Strategic Plan that ends in the next year. Fortunately, things seems to be better than expected. But we have to bear in mind that we are not in the end of the year, we are just in the third quarter on one side. And on the other side, any change in any guidance of the company must be adopted by the Board previously.

So we have no further questions. We did receive some to the platform that we think would be better answered after the call due to a very technical nature. We'll reach out to you between now and Monday. And just as a reminder, all the documents are available at our website.

And now I'm going to hand the floor back to José Manuel for some closing remarks and after José Luis Jiménez.

Yes. If I make some closing remarks, I would say that we are very satisfied with the company figures that we have presented. They are excellent results, and the results are the consequence of 3, 4 very hard years of work, especially to decrease the combined ratio and to grow up the ROE. Combined ratio is improving 2.2% -- 2.2 points over the last year. That has been compatible with a very prudent approach, which has led us to make some strongest provisions in some units, especially in Reinsurance unit and to make the write-offs and the recognition of fiscal assets that we have presented to the market. So overall, every country -- almost every country, almost every business line is improving its technical results. So we feel the whole team feels very rewarded for the for the work that has been done in the last year.

Growth is 80% in a constant exchange ratio and having this improvement on the balance and on the results, we will be focusing in profitable growth over the next quarter, not only in premiums. This is something that we already have, but in insured units and in terms of customers.

Another thing is that MAPFRE is having a very good years, and we have good expectations for the end of the year if nothing extraordinary happens. Just to remind that the dividends will surpass for the first time in our history, EUR 500 million, which is a very remarkable figures. And just to put an end, talk just a second on the prudent deployment of AI and digitalization that is going on in the company. The company is improving a lot. And I must say with a prudent and humanistic approach to the AI, we are expanding it over the company.

And the last part is to talk about system plans, very important system plans that are going on in Spain, Latin America and U.S.A. And so far, they are giving results and they are on track as well. So that is my final conclusion, and thank you very much for the attention and the questions.

Thank you.

I think José has said it all. We have had a wonderful quarter, and we are looking forward to a really good year for MAPFRE.

Thank you so much for your analysis, for your questions. And if you have any further questions that we are able to give you a proper answer, we are at your disposal in the coming hours or days. Thank you so much.

Thank you.

Thank you.

Thank you.