Grupo Catalana Occidente S.A.

Annual Report • Feb 27, 2025

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Consolidated Annual financial report 2024

Grupo Catalana Occidente, S.A.

Consolidated Annual Financial Report Grupo Catalana Occidente, S. A. 2024

Grupo Catalana Occidente (GCO) has published its 2024 Annual Report, which was favorably reviewed by the Audit Committee during its session on February 25, 2025, and subsequently approved by the Board of Directors during its session on February 27, 2025. Specifically, the consolidated financial statements have been prepared in accordance with the International Financial Reporting Standards (IFRS) adopted by the European Union and audited by PricewaterhouseCoopers Auditores S.L.

This report has been prepared in accordance with the International Integrated Reporting Council (IIRC) framework, adhering to the principles of reliability, relevance, and comparability. It provides an overview of the environment, the business model, the strategic approach, and future orientation, as well as the key risks faced by the Group. Additionally, it outlines the Group's governance-related activities.

The scope of the information presented in the report encompasses Grupo Catalana Occidente and its constituent entities. The business evolution in recent years has been closely tied to corporate transactions, which have been formally communicated to the market through the National Securities Market Commission (CNMV) publications.

Furthermore, the report includes GCO's Consolidated Non-Financial Information Statement and Sustainability Information (hereinafter Sustainability report), which complies with the Corporate Sustainability Reporting Directive (CSRD) at the European level, replacing Directive 2014/95/EU. This document addresses Environmental, Social, and Governance (ESG) topics in detail.

The Alternative Performance Measures (APM) used in this report correspond to the financial measures that are not defined or detailed in the framework of the applicable financial information. Their definition, calculation and reformulation regarding the financial statements can be consulted in the glossary section and the corporate website.

The report is available on the Group's website. An Excel document with financial information is also available on this website.

In the event that you should require further information contact: Analysts and investors +34 91 566 13 02 analistas@gco.com

I. Letter from the Chairman

Dear shareholders, partners and customers:

I am pleased to present the 2024 annual report and share with you some reflections on a key year for GCO, in which we have concluded the 2022-2024 Strategic Plan and consolidated the solid results recorded throughout the triennium.

The cornerstone of the Plan has been corporate simplification, an ambitious project that culminated in 2024 with the birth of Occident, resulting from the merger of Seguros Catalana Occidente, Plus Ultra Seguros, Seguros Bilbao and NorteHispana, Occident serves more than 4.6 million customers through a network of over 14,000 mediators.

We have also worked on other fundamental initiatives: boosting distribution networks, focusing on digitalization and omnichannel strategies, and developing innovative products in strategic areas such as health, mobility, and solutions for the senior collective.

At the same time, we have advanced in providing more convenient solutions for our policyholders. Through the application of new technologies, we have streamlined the most critical processes for the client, such as policy subscription, claims resolution, and service provision.

Regarding Atradius, it has once again demonstrated its solidity and capacity to generate profitable growth while maintaining prudent risk management.

In Mémora, we have focused on supporting families with a long-term vision, efficiency, and growth through the acquisition of other companies, while integrating Asistea.

Meanwhile, the Group's corporate venturing entity, GCO Ventures, has continued its innovative purpose by launching new businesses in areas related to insurance activities.

Solid results endorsed by rating agencies

This transformative process has been accompanied by excellent results in our three business lines – Occident, Atradius, and Mémora – as well as in our three strategic pillars – growth, profitability, and solvency – demonstrating that GCO is a solid group capable of adapting at all times to a changing economic environment.

Once again, the main rating agencies endorse our business model. In the past year, the rating agency A.M. Best confirmed the financial strength rating of "A" (excellent) and the long-term issuer credit rating of "a+" (excellent), both with a stable outlook, for the main operating entities of GCO, both in Occident and Atradius, reflecting the Group's solvency and financial strength. Moody's, for its part, maintained its A1 rating with a stable outlook for Atradius.

Commitment to sustainability and new projects

We are particularly excited to inaugurate a new headquarters with over 20,000 square meters of space on Méndez Álvaro Street (Madrid), where we bring together the entire team located in this city in one building. Situated in one of the new nerve centers of economic growth, it incorporates the highest environmental standards, earning it the highest LEED Platinum energy certification. The new building also reflects our commitment to implementing a more flexible work environment that will improve the work experience for our teams.

Our commitment to being an active part of social and environmental protection is reflected in the launch of the new Sustainability Master Plan, which sets the course we will follow at GCO in terms of sustainability until 2026. Good governance, sustainable business, social commitment, and environmental responsibility are the four pillars that structure the plan, from which a series of objectives and actions are derived that will allow us to continue creating value and contributing to society's well-being.

Committed in key moments

Beyond achieving the sustainability objectives, our commitment is measured by the response we offer to the catastrophes and challenges we face as a society, as was the case with the DANA that hit the Valencian Community. In the face of such episodes, as an insurance group, our main task is to support those affected as much as possible. Therefore, Occident set a special aid operation to reinforce attention and service and adhered to the public-private agreement to expedite assistance to policyholders. It also provided a free medical orientation service, psychological counseling, and social assistance.

Atradius, for its part, granted an extension of communication deadlines to its policyholders affected by the DANA and facilitated payment extensions to affected companies without losing insurance guarantees. Mémora also contributed with various actions, such as enabling free wake rooms; and from GCO and Occident Foundation, we collaborated with the Spanish Red Cross fundraising campaign.

Regarding Occident Foundation, we bid farewell with deep sadness to its chairperson and GCO advisor, Federico Halpern, who greatly contributed to the Group and to Occident Foundation reflecting GCO's commitment to society. The Foundation's work in research, teaching, cultural actions, sports activities, and solidarity initiatives continues under the presidency of Laura Halpern. Important milestones in 2024 include collaboration with the Gasol Foundation to prevent childhood obesity and promote healthy habits among the youngest; and the launch of the Jesús Serra Degree Scholarships, which facilitate university access for students without university references in their families.

To conclude these reflections, I wish to express my gratitude to Juan Closa, CEO of Occident until his retirement on January 1, 2025. Linked to GCO for over 40 years, his leadership has been key in the growth of the traditional business and the merger process that led to the creation of Occident.

The dedication of our employees and collaborators, the support of our shareholders, and the trust that clients place in us are crucial in making GCO a leader in accompanying people and companies at all stages of their lives in order to ensure their peace of mind in the present and their trust in the future. We now face the challenge of continuing to create value as a Group for all our stakeholders, a purpose we will address in our 2025-2027 Strategic Plan.

From these lines, I extend my sincerest gratitude for staying by our side and our firm commitment to live up to your support.

José M.ª Serra

Table of Contents Consolidated Annual report 2024

I. Letter from the Chairman	3
II. Consolidated management report	6
III. Consolidated annual accounts	172
IV. Auditor's report	335

Table of Contents Consolidated management report

01. Annual panorama	7
02. GCO in 2024	10
03. Results in 2024	18
04. Corporate governance	35
05. Business Model	47
06. Consolidated Non-Financial Information Statement and Sustainability Information (Sustainability report)	54
07. Annual corporate governance report	164
08. Annual remuneration report	165
09. Glossary and Calendar	166

II. Consolidated management report

01. Annual panorama

Key financial figures 8

Index					Annual consolidated financial report 2024
01. Annual panorama 02. GCO in 2024	03. Results in 2024 04. Corporate Governance 06.Sustainability Report	05. Business Model	08. Annual remuneration report	07.Annual Corporate Governance report 09.Glossary and Calendar
Key financial figures
Turnover and business distribution		5,997.7 M€	+3.5%	54.0 % Occident 41.6 % Atradius 4.4 % Mémora
Combined ratio		90.9 % 76.3 %	-1.7 p.p. +2.1 p.p.	Occident Atradius
Consolidated result		Shareholder remuneration		market value	Permanent resources at
688.7 M€		145.8 M€			6,562.2 M€
Solid financial structure			Technical rigor

It is listed on the stock exchange. Stable and committed shareholders. Rating A (AM Best) and A1 (Moody's).

Excellent non-life combined ratio. Strict expense control. Prudent and diversified investment portfolio.

Strategic purpose

To be leaders in protecting and supporting people and companies at all stages of their lives, to ensure their peace of mind in the present and their confidence in the future.

International dimension

GCO is present in more than 50 countries and has a significant presence in Spain.

02. GCO in 2024 04. Corporate Governance 06.Sustainability Report 08. Annual remuneration report

1. Annual panorama 03. Results in 2024 05. Business Model 07.Annual Corporate Governance report 09.Glossary and Calendar

Key financial figures

The Group achieved solid results with improvements in its three strategic pillars

Growth

• Increase of 3.5% in business turnover, reaching €5,997.7 million.

Profitability

• • Increase of 11.9% in the consolidated profit, reaching €688.7 million.
• • Ordinary profits:
  • Occident, at €292.3 million, 11.9%.
  • Atradius, at €392.3 million, 7.3%.
  • Mémora, at €18.1 million.
• • Combined ratio:
  • 90.9% in Occident (non life) (-1.7 p.p.).
  • 76.3% in Atradius (2.1 p.p.)
• • Commitment to the shareholder. Dividend of €145.80 million (8.7%).

Solvency

• • The Group's estimated Solvency II ratio at the end of 2024 is 241.5%.
• • A.M.Best maintains the rating of the main operating entities in both Occident and Atradius at "A" with a stable outlook, and Moody's upgrades the rating on the entities in the credit insurance business to "A1" with a stable outlook.
• • The ESG (Environmental, Social, and Governance) risk of GCO has been assessed by the rating agency Sustainalytics. In May 2024, the agency reviewed the ESG rating, granting a score of 16.6 points, placing GCO among the top 40 companies (out of more than 300) with the best ratings in the insurance sector.

Key financial figures (€million)	2020	2021	2022	2023	2024	% Chg 23-24
Growth
Insurance turnover	4,559.5	4,882.5	5,245.6	5,565.6	5,734.9	3.0 %
– Occident	2,720.4	2,801.0	2,842.9	3,064.6	3,239.8	5.7 %
– Atradius	1,839.1	2,081.5	2,402.7	2,500.9	2,495.0	-0.2 %
Mémora	30.1	29.9	32.8	227.0	262.8	15.8 %
Total turnover	4,589.6	4,912.3	5,278.4	5,792.6	5,997.7	3.5 %
Profitability
Consolidated profit/(loss)	270.1	468.3	542.5	615.5	688.7	11.9 %
– Occident	234.9	239.9	257.8	261.1	292.3	11.9 %
– Atradius	50.4	241.8	354.6	365.6	392.3	7.3 %
– Mémora	3.7	4.3	4.8	13.6	18.1	33.1 %
– Non-ordinary	-18.9	-17.8	-74.7	-24.9	-14.0	43.8 %
Attributable profit/(loss)	262.3	427.2	486.5	551.8	623.2	12.9 %
Combined ratio Occident*	88.6%	88.9%	90.8%	92.6%	90.9%	-1.7 p.p.
Combined ratio Atradius	94.1%	64.2%	72.3%	74.1%	76.3 %	2.1 p.p.
Dividend	0.88	0.95	1.03	1.12	1.22	8.7 %
Pay-out	40.4%	26.6%	27.6%	24.3%	23.4%	-3.7 %
Share price	29.2	30.0	29.6	30.9	35.9	16.2 %
PER	13.3	8.4	7.3	6.7	6.9	3.0 %
ROE	7.3%	10.5%	12.9%	12.1%	11.8%	-2.5 %
Solvency
Permanent resources at market value	7,384	7,305	7,143	5,738.8	6,562.2	14.3 %
Technical provisions	1,490	1,481	1,518	12,035.6	12,633.8	5.0 %
Managed funds	15,878	15,562	15,032	15,364.7	16,876.4	9.8 %
Solvency II Ratio**	216%	220%	247%	232%	241%
Non-financial data
Number of employees***	7,384	7,305	7,143	8,614	8,671	0.7 %
% Permanent contracts	96.0%	97.0%	97.1%	96.9%	97.5 %
Number of offices Occident	1,323	1,312	1,355	1,288	1,215	-5.7 %
Number of intermediaries in Occident	15,878	15,562	15,032	14,709	14,438	-1.8 %
Net Promoter Score (NPS) Occident	45.4%	48.5%	49.1%	49.1%	43.5%

* Combined ratio does not include Health and Funeral

** Data with partial internal model. Pending audit

***Considered in the concept of full time employees (FTE). Mémora Group employees joined in 2024

**** During the merger process, redundant mediator codes have been removed

02. GCO in 2024

Macroeconomic environment 2024	11
Sector environment	12
Group performance	13
Shareholder remuneration	15
Outlook and challenges for 2025	17

Macroeconomic environment 2024

Growth of 3.2% in 2024 (3.3% in 2023). Deceleration and divergences: The global economy faces uncertainties in trade and monetary policy.

United States 2.8% GDP 2024

• • Robust internal consumption and labor market recovery
• • Expansive policies and deregulation
• • Trade tensions impact foreign trade

Latin America 2.4% GDP 2024

• • Brazil leads regional growth thanks to internal consumption and agricultural exports
• • Political tensions
• • Weak external demand

Eurozone 0.8% GDP 2024

• • Gradual growth due to geopolitical tensions
• Persistent weaknesses in the manufacturing sector
• Increase in domestic consumption

Spain 3.1% GDP 2024

• • Recovery of tourism and internal consumption
• • Weak performance of the industrial sector
• • Increase in public investment

United Kingdom 0.9% GDP 2024

• • Restrictive fiscal policies
• • Increase in energy costs
• • Gradual recovery of internal consumption

Asia Pacific 5.2% GDP 2024 China 4.8% GDP 2024:

• • Moderate recovery of exports
• • Weakness in the real estate sector
• Japan -0.2% GDP 2024:
• • Economic slowdown

Fixed income		Equity			Raw materials/currencies
Interest rates remain unchanged.			Stock indices have rebounded with annual growth at highs.			The price of a barrel of oil has fallen by 3.1%. The dollar is losing its appeal as a safe haven currency.
Interest rates	1 year	10 years		2024	%Chg.		2024	%Chg.
Spain	2.22	3.06	Ibex35	11,595.0	14.8%	Oil (\$/barrel)	74.64	-3.1%
Germany	2.24	2.37	MSCI World	365.6	24.8%	Gold (\$)	2,625	27.2%
USA	4.14	4.57	Eurostoxx50	4,896.0	8.3%	€/\$	1.0	-6.2%
			S&P	5,881.6	23.3%	€/L	0.83	-4.6%
Source: Bloomberg. As of year end 2024

Sector environment

The insurance sector in Spain recorded a revenue decline of 1.6%, driven by a 7.8% growth in the non-life segment and a 13.7% drop in the life segment, primarily due to the decrease in demand for savings products.

Turnover evolution

Stability in sector results
ROE 14.6%	Combined ratio 93.8%*
	Motor Multi-risk Health	101.5 % 92.2 % 96.8 %

Source: ICEA as of year end 2024

Evolution of insurance group ranking

Group	Position	Market share
Vidacaixa	=	13.8%
Mapfre	=	11.4%
Grupo Mutua Madrileña	=	10.5%
Allianz	+4	5.0%
Grupo Axa Seguros Generales	=	4.9%
Generali	+4	4.8%
GCO	-1	4.8%
Zurich	-4	4.5%
Santa Lucia	-2	3.0%
Grupo Helvetia	+1	2.9%

Source: ICEA, as of year end 2024.

*Combined ratio includes Health & Funeral

The sector's technical account profit at the end of 2024 was 10.5% of retained premiums, which is 1.4 percentage points higher than in the previous year.

The result of the non-life technical account increases to 9.3%, mainly due to the strong performance of the motor and multi-risk.

In 2016, Solvency II came into effect, with the first official data emerging in 2017. The published figures continue to reflect a consistent sectoral position. The average coverage ratio in Spain at the end of 2024 was 241.9%, remaining in line with the previous year's results.

Credit insurance business

Fuente: ICEA a cierre 2024

After a few exceptional years marked by the pandemic, 2024 began with a global economy that continued to recover gradually, though with divergent growth rates. Following this trend, moderating inflation and growth expectations pave the way for a smoother landing than expected in 2024.

Everything still indicates that 2025 will be a challenge for emerging markets and advanced economies. Global GDP growth is expected to be at 3.3% in 2025 and 2026. For markets with high public or private debt, the evolution of interest rates poses an additional challenge.

Group performance

The Group's consolidated profit was €688.7 million and turnover increased by 3.5%.

The Group's attributed profit increased by 12.9%% to €623.2 million.

Favourable performance of the three businesses

Total turnover increased by 3.5% reflecting sustained growth in Occident with an increase of 5.7%, and the positive performance of Mémora, which offset the -0.2% slight decline in Atradius.

The technical result after expenses, amounting to €687.9 million, increase by 9.5%, driven by the performance of the two insurance businesses.

In Occident, positive developments were observed across all lines of business, with notable growth in multi-risk by 8.1% and in motor by 9.4%. Despite the continued rise in claims costs due to inflationary effects, the technical result increased by 9.5%

Atradius continues its normalization process, with claims inflow on an annual basis slightly below prepandemic levels (2019).

Income statement (€ million)	2020	2021	2022	2023	2024	% Chg. 23-24
Written premiums	4,426.4	4,746.9	5,103.7	5,421.8	5,584.8	3.0%
Income from information	133.1	135.6	141.9	143.8	150.1	4.3%
Insurance turnover	4,559.5	4,882.5	5,245.6	5,565.6	5,734.9	3.0%
Technical cost	2,917.8	2,853.3	3,063.8	3,218.3	3,297.3	2.5%
% on total insurance income	63.8%	59.2%	59.4%	59.2%	58.9%
Commissions	558.6	588.6	670.8	719.9	776.1	7.8%
% on total insurance income	12.2%	12.2%	13.0%	13.3%	13.9%
Expenses	750.1	847.7	816.5	866.6	836.3	-3.5%
% on total insurance income	16.4%	17.6%	15.8%	16.0%	14.9%
Technical result	344.1	528.2	608.8	628.2	687.9	9.5%
% on total insurance income	7.5%	11.0%	11.8%	11.6%	12.3%
Financial result	28.2	98.3	209.0	175.9	224.2	27.4%
% on total insurance income	0.6%	2.0%	4.1%	3.2%	4.0%
Non-technical non-financial account result	-14.1	-34.2	-135.2	-54.0	-58.9	-9.0%
% on total insurance income	-0.3%	-0.7%	-2.6%	-1.0%	-1.1%
Result from compl. credit insurance activities	1.8	9.9	8.8	16.7	16.1	-3.2%
% on total insurance income	—%	0.2%	0.2%	0.3%	0.3%
Funeral business technical result	4.6	5.2	5.8	31.4	37.8	20.4%
Result before taxes	364.6	607.3	697.2	798.2	907.1	13.7%
% on total insurance income	8.0%	12.6%	13.5%	14.7%	16.2%
Taxes	94.5	139.0	154.7	182.7	218.5	19.6%
% on result	25.9%	22.9%	22.2%	22.9%	24.1%
Consolidated result	270.1	468.3	542.5	615.5	688.7	11.9%
Result attributed to minorities	7.8	41.1	56.0	63.7	65.5	2.9%
Attributable result	262.3	427.2	486.5	551.8	623.2	12.9%
% on total insurance income	5.7%	8.9%	9.4%	10.2%	11.1%
Ordinary result	289.0	486.1	617.2	640.3	702.7	9.7%
Non-ordinary result	-18.9	-17.8	-74.7	-24.9	-14.0	43.7%

* Total insurance income = total earned premiums plus income from information

Índex				Annual consolidated financial report 2024
01. Annual panorama	03.Results in 2024	05. Business Model	07. Annual corporate governance report	09.Glossary and calendar
02. GCO in 2024	04. Corporate Governance	06. Sustainability Report	08.Annual remuneration report

Technical profit after expenses

The combined ratio of Occident (excluding health and funeral) slightly decreased by 1.7 percentage points to 90.9%, 2.9 percentage points below that of the sector. Notably, the multi-risk combined ratio decreased by 4.3 percentage points to 88.8%, driven by fewer climaterelated events during 2024 and an increase in earned premiums coupled with reduced expenses.

In Atradius, the gross combined ratio closed the year at 76.3%, increasing by 0.7 percentage points. However, it remains 2.4 percentage points below the 2019 "pre-COVID" level, as claims inflow on an annual basis stayed below pre-pandemic levels, particularly in the first half of the year.

Focus on efficiency

In Occident, even with the investment in technology and communication (advertising), the effort to contain expenses and a greater operational efficiency, has reduced expenses to 278.6 million euros, a decrease of 8.4% compared to the same period of the previous year. In Atradius, expenses increased by 0.6%% to €527.5 million, due to greater investment in technology, both in new projects and in accelerating the amortisation of completed projects. However, in relative terms, the Group's efficiency ratio stands at 28.8%.

Financial profit/(loss) and complementary activities

The financial margin, at €224.5 million,increases by 27.6% compared to the previous year. This increase is mainly explained by the environment of rising interest rates and adjustments in our investment strategy resulting from the new IFRS9 accounting regulations. During the year, the Group has remained active in the diversification and search for profitability. In turn, complementary activities in credit insurance, information services, debt collection and export credit management contributed €16.1 million to the profit and loss account.

Corporate tax

In the year 2024, the expense for corporate tax reached €218.5 million, which represents an effective rate of 24.1% on profit before taxes.

Financial strength

Permanent resources increased by 16.4% to €6.016,5 million. Adding the capital gains not included in the balance sheet (from real state), the permanent resources at market value stand at € 6,562.2 million, up 14,3% more than in 2024.

A.M.Best maintains the rating of the main operating entities in both Occident and Atradius at "A" with a stable outlook, and Moody's maintains the rating on Atradius to "A1" with a stable outlook.

Solid Solvency ratio

In terms of solvency, GCO calculates the capital requirement in accordance with the standard formula provided for in the regulations, except in the credit and surety branch, for which, in order to reflect the specific nature of the business, it applies a partial internal model for the calculation of underwriting risk approved by the college of supervisors.

The Group's solvency ratio at year-end 2024 is estimated at 241.5% The solvency ratio, even in adverse scenarios, remains at around 175% on a sustained basis.

Consolidating sustainability in the business strategy

In 2023, GCO has updated its materiality analysis in order to identify the relevant issues for the Group and its stakeholders. This analysis has been carried out in accordance with the dual approach promoted by the Corporate Sustainability Reporting Directive (CSRD), taking into account both impact materiality and financial materiality.

Based on the dual materiality analysis, the Group has been able to identify the sustainability issues to which its stakeholders attach most importance, which has enabled it to design the new Sustainability Master Plan for the 2024-2026 period. This new Master Plan is structured in 4 pillars on which 10 strategic lines have been defined in which the Group wants to create value, from which 22 goals to be achieved and 44 actions necessary for their attainment have been established.

In addition, the requirements of the Taxonomy Regulation and the Sustainability Disclosure Regulation or SFDR have been met, contributing to the development of a sustainable global financial system. In this regard, in 2023 the Group adapted its range of unit linked products, pension plans and EPSVs to the Article 8 category of the SFDR which, together with investment fund products, explicitly incorporate environmental and/or social considerations in their management, beyond the mere integration of sustainability risks.

Events after the close of 2024

No events have occurred after the end of 2024.

Shareholder remuneration

The historical performance of dividend distribution demonstrates the Group's clear commitment to shareholder remuneration.

Dividends

In 2024, the Group increases the dividend by 8.7% and distributes €145.8 million.

The Group has made three cash dividend payments for a total amount of €0.2070/share. These payments were made on 10 July 2024, 9 October 2024 and 12 February 2025. In addition, the Board of Directors agreed, at its meeting on 27 February , 2025, to propose to the General Shareholders' Meeting an increase of 10.0% of the final dividend to be paid on 8 May 2025. As a result, the Group would distribute a total of €1.215/share (€145.8 million), an increase of 8.7%. This dividend is equivalent to a pay-out of 23.4% on the attributable profit for the year 2024 and a return on the average share price in 2024 of 3.32%.

Shareholding structure

Stable and committed shareholders. At the end of the 2024 financial year, the shareholding structure remained unchanged.

The main shareholder of Grupo Catalana Occidente is INOC, S.A., which controls 62.03% of the share capital. In addition, the Group, through Sociedad Gestión Catalana Occidente S.A., holds 1,977,283 shares in treasury stock with a total acquisition cost of 22.8 million euros, representing 1.65% of the share capital. The board members and their related persons (other than INOC, S.A.) represent 2.74%. The Group's free-float is 33.57%, and half of this is in the hands of institutional investors. The Group has no information about the existence of agreements between its shareholders for the concerted exercise of voting rights or that limit the transfer of their shares.

Relationship with the financial market

GCO maintains a smooth, transparent and close relationship with the financial market.

The Group has a policy of communication and relationship with the financial market available on its website and is in contact with its analysts, investors and shareholders through specific channels. The shareholder and investor portal updates the share performance, as well as the main information on results, presentations and credit ratings.

Furthermore, the Group submits to the CNMV all information that, in accordance with current legislation, is con-sidered privileged or relevant, periodic financial and The information sent to the CNMV is immediately made public on the CNMV's website and is then also published

Geographical distribution of institutional investors

on the Company's website. GCO publishes the following financial, non-financial and corporate information: i) Insider Information Communications (IP) and Other Relevant In-formation (OIR) ii) Quarterly information 31/03 and 30/09 (OIR) iii) Half-yearly information 30/06 and 31/12 (IPP); iv) Annual re-port 31/12 (FEUE):Annual Financial Statements and Management Report, which includes the Sustainability Report, the Annual Corporate Governance Report, and the Annual Remuneration Report, along with the External Auditor's Report.

Share performance

During the year the average share price was During the year the average share price was €36.56€/share.

GCO shares are listed on two Spanish stock exchanges, Barcelona and Madrid, being listed on the Continuous Market.

During 2024, the GCO share has has performed above the Eurostoxx Insurance and Ibex 35 indices, as well as its long-term profitability.

Analysts' recommendations remain favourable, with a "buy" recommendation and indicating an average target price of €50.08/share.

Share evolution in 2024

12/2023	03/2024	06/2024	09/2024	12/2024
	GCO	IBEX 35	EurStoxx Insurance

Share data	2020	2021	2022	2023	2024
Minimum (€/s)	16.20	27.75	24.90	27.60	30.85
Maximum (€/s)	32.05	36.35	30.60	32.20	40.20
Period end (€/s)	29.15	30.00	29.55	30.90	35.90
Number of shares	120,000,000	120,000,000	120,000,000	120,000,000	120,000,000
Nominal share value ( /s)	0.30	0.30	0.30	0.30	0.30
Average daily underwriting (number of shares)	73,334	55,165	26,835	54,781	21,379
Average daily underwriting (euro)	1,653,784	1,745,406	762,716	1,618,314	783,859
Market capitalisation (€ million)	3,498	3,600	3,546	3,708	4,308
Ratios	2020	2021	2022	2023	2024
Profit per share	2.19	3.56	4.05	4.60	5.19
Theoretical book value	32.81	37.27	34.86	41.79	48.07
PER	13.34	8.43	7.29	6.72	6.91
ROE	7.33	10.48	12.86	12.10	11.8
Dividend Yield	3.80	2.98	3.60	3.75	3.32

*The theoretical book value is calculated using management information.

							CAGR*
Profitability	2002	2007	2012	2022	2023	2024	02-24
Closing price 31/12	3.99	22.91	13.77	29.55	30.90	35.90
GCO (%)	-7.21	-16.54	12.22	-1.50	4.57	16.18	10.95
IBEX 35 (%)	-28.11	7.32	-4.66	-5.56	22.76	14.78	3.01
EUROSTOXX Insurance (%)	-51.23	-11.92	32.92	-1.06	8.76	8.28	4.45

*Compound annual growth rate

Outlook and challenges for 2025

After having completed the roadmap has guided GCO over the past three years, the 2025 fiscal year begins with a new Strategic Plan 2025-27. GCO will begin with new projects, focusing on its three Strategic Pillars of GCO: growth, profitability, and solvency.

It is expected the 2025 fiscal year will continue to be framed within a complex scenario, where geopolitical uncertainty persists, along with the need to monitor the evolution of markets, inflation, and interest rates.

For GCO, the main challenges are:

• Economic environment marked by inflation and protectionist policies.. Although inflation is expected to moderate during 2025, a global average level of around 4% is projected according to the IMF, which will mainly affect business costs.

• • Reduction of interest rates. As expected, 2024 has been a year in which interest rates began to decrease although this occurred in the second half of the year. For 2025, it is expected that interest rates will continue to decrease compared to 2024.
• • Digital transformation. The use of technology and data continues to set the pace for digitalization to enhance operational efficiency and enrich the customer experience.
• • Strengthening sustainability already integrated into the strategy. It is expected that sustainability will continue to gain traction in 2025.

03. Results in 2024

Occident	19
Atradius	22
Mémora	24
General expenses and commissions	25
Non-ordinary profit/(loss)	25
Reinsurance profit/(loss)	26
Financial profit/(loss)	27
Balance sheet	28
Investments and managed funds	29
Capital management	31
Solvency II	32
IFRS 17	33

Occident

Positive evolution with a 5.7% in written premiums growth and non ordinary profit of €292.3 millon.

Recurring turnover (excluding single life premiums) increased by 6.5% supported mainly by non life insurance, where the increase in multi-risk and motor is noteworthy. Life business developed favourably with a 1.6% growth in turnover thanks to the good performance of single premiums.

The technical profit after expenses, at €297.2 million, increased by 20.9%. Non-Life's technical profit contributed €180.5 million grows by 32.4%, due to a 1.7 p.p. decrease in the combined ratio to 90.9%.. The technical cost decreases by 0.4 p.p., while commissions and expenses are reduced by 1.3 p.p. Meanwhile, the Life business increases its technical result by 6.7%, reaching € 116.7 million.

The financial profit, at €104.7 million decreases by -4.6%.

Ordinary profit increases at 11,9% with €292,3 million.. During the year, non-ordinary results to €3.6 million were recorded, consequently, the total result is €295.9 million, increasing by 24.0%.

DANA impact October 2024

After the climatological impacts occurred in Spain, Occident GCO, S.A. de Seguros y Reaseguros, hereinafter Occident, joined the collaboration agreement between Unespa, the Spanish Union of Insurance and Reinsurance Companies, and the Insurance Compensation Consortium (CCS) to expedite the disbursement of compensation by the consortium to those affected by the DANA. In this way, Occident Seguros has received more than 42,000 claims assessment assignments, for the management of which it has provided nearly 300 professionals. Due to most of the claims are compensable by the consortium, the economic impact on GCO is not significant

Distribution channels

% Chg 23-24 5.7%
6.5%
20.9%
-4.6%
-40.6%
-7.4%
11.9%
---
24.0%
7.3%

Health 4.8% Funeral 5.4%

Periodic life 16.2%

supplementary life 9.9%

Single and

01. Annual panorama	03.Results in 2024	05. Business Model	07. Annual corporate governance report	09.Glossary and calendar
02. GCO in 2024			04. Corporate Governance 06. Sustainability Report 08.Annual remuneration report

Multi-risk

Turnover growth of 8.1%, reaching 894.2 million euros. The combined ratio has decreased by 4.3 percentage points, standing at 88.8%. This improvement is due to fewer weather events, as well as the effect of increased premiums acquired along with a reduction in expenses

Multi-risk ( €million)	2020	2021	2022	2023	2024	% Chg 23-24
Written premiums	686.9	721.8	774.3	827.5	894.2	8.1%
Number of claims	841,525	877,630	977,166	1,071,172	1,079,802	0.8%
Technical provisions	544.4	559.0	619.5	633.1	707.8	11.8%
% Technical cost	55,0%	56,3%	59,4%	60.3%	56.5%	-3.8 p.p.
% Commissions	20,9%	21,0%	21,6%	21.7%	22.1%	0.4 p.p.
% Expenses	13,1%	12,8%	11,8%	11.1%	10.2%	-0.9 p.p.
% Combined ratio	89,0%	90,1%	92,8%	93.1 %	88.8 %	-4.3 p.p.
Technical profit/(loss) after expenses	74.5	69.9	54.1	55.3	95.8	73.2%
on earned premiums	11,0%	9,9%	7,2%	6.9%	11.2%
Earned premiums	676.1	705.3	750.7	797.7	855.3	7.2%

Turnover increase of 9.4% to €755 million. The combined ratio stood at 96.4%, increasing slightly by 0.1 p.p. The increase in the cost of claims due to inflationary effects has been offset by expenditure efficiency.

Written premiums	2020	2021	2022	2023	2024	% Chg 23-24
Written premiums	653.8	641.1	658.6	690.8	755.5	9.4%
Number of claims	624,600	703,262	734,804	756,168	733,483	-3.0%
Technical provisions	857.4	862.7	880.5	898.8	977.5	8.8%
% Technical cost	66.5%	65.5%	68.7%	72.7%	75.1%	2.4 p.p.
% Commissions	11.2%	11.2%	11.8%	11.9%	12.0%	0.1 p.p.
% Expenses	12.7%	12.6%	12.2%	11.7%	9.2%	-2.5 p.p.
% Combined ratio	90.3%	89.3%	92.7%	96.3%	96.4%	0.1 p.p.
Technical profit/(loss) after expenses	63.4	69.6	47.7	24.8	26.1	4.9%
% on earned premiums	9.7%	10.7%	7.3%	3.7%	3.6%
Earned premiums	655.5	650.4	651.2	677.2	722.6	6.7%

Turnover growth of 6.6%, reaching €415.7 million. The combined ratio stood at 85.6%, an increase of 0.6 percentage points due to the rise in claims, although partially offset by cost efficiency.

Other (€millon))	2020	2021	2022	2023	2024	% Chg 23-24
Written premiums	312.2	330.8	359.0	390.1	415.7	6.6%
Number of claims	93,483	98,193	94,421	90,402	89,694	-0.8%
Technical provisions	574,4	595,4	664,9	680.5	733.9	7.8%
% Technical cost	51,0%	52,3%	49,1%	50.3%	52.1%	1.8 p.p.
% Commissions	19,0%	18,4%	20,5%	22.9%	23.5%	0.6 p.p.
% Expenses	14,3%	14,7%	13,3%	11.8%	9.9%	-1.9 p.p.
Combined ratio	84.4 %	85.4 %	82.9 %	85.0 %	85.6%	0.6 p.p.
Technical profit/(loss) after expenses	48.9	46.6	58.5	56.2	58.6	4.3 %
% on earned premiums	15.7 %	14.6 %	17.1 %	15.0%	14.4%
Earned premiums	312.4	318.9	342.7	374.9	406.6	8.4%

Turnover in life business grows by 1.6 p.p to €1,174.4 million because of the strong performance of recurring premiums. The technical-financial result increases by 1.1% to reach €187.4 million. In funeral business the combined ratio stands at 75.7%, decreasing by 1.4 percentage points. Meanwhile, health business combined ratio has increased by 3.9 percentage points, reaching 90.9%

Life (€million)	2020	2021	2022	2023	2024	% Chg 23-24
Life insurance turnover	1,067.5	1,107.3	1,050.9	1,156.2	1,174.4	1.6%
Health	142.8	145.0	149.0	151.3	154.1	1.9%
Funeral	143.3	147.4	155.3	160.9	174.5	8.5%
Periodic life	476.5	487.1	510.1	520.8	524.4	0.7%
Single Life	304.9	327.7	236.5	323.3	321.4	-0.6%
Pension plan contributions	71.8	61.0	51.3	48.7	57.0	17.1%
Net contributions to investment funds	1.3	3.0	-10.7	-10.1	-6.4	36.1 %
Volume of managed funds	6,695.5	6,771.7	6,620.1	6,588.2	6,704.4	1.8%
Technical profit/(loss) after expenses	74.2	71.4	102.6	109.4	116.7	6.7%
% on earned premiums	7.0%	6.4%	9.8%	9.4%	9.9%
Technical-financial profit/(loss)	95.3	98.2	150.4	185.3	187.4	1.1%
% on earned premiums	2.0%	2.4%	4.6%	16.0%	16.0%
Earned premiums	1,066.1	1,107.3	1,048.9	1,160.8	1,174.3	1.2%

Atradius

Growth in net insurance income of 0.7% with an ordinary profit of €392,3 million.

In the credit insurance business, the Group has increased its net income (earned premiums and information services) by 0.7% reaching €2,438.8 million. The earned premiums, at €2,288.7 million, have decreased by 0.4%. In turn, income from information has increased by 4.3%, contributing €150.1 million.

The Group has increased its risk exposure (TPE) by 6,0% compared to the end of 2023.

Atradius selects risks in a exhaustive and prudent manner, especially in sectors and countries that may be affected by adverse geopolitical situations.

Increase of 0.4% in earned premiums, reaching €2,288.7 million.

Distribution of earned premiums by region:

The technical profit after credit insurance expenses was €578,5million, 7,6% less than in the previous year.

The gross combined ratio was 76,3%, 2,1 percentage points higher than at the close of 2022. However, the inflow of claims remains below the pre-pandemic period. However, the prudent level of provisions of previous years is maintained.

The profit ceded to reinsurance was €157,5 million, 25,9% less than in the same period of the previous year. Due to the change in the assignment ratio of the contract, the share goes from 37% to 35%.

The financial profit was €101,1 million higher than in the same period of the previous year due to the increase in the return on its portfolio of fixed income and short-term assets. The profit for complementary activities is €16.7 million.

Consequently, ordinary profit is positioned at €392.3 million, up 7.3% than in 2023. During the year there were negative non ordinary profits of €14.6 million. In total, this business contributed a profit of €377.7 million, an increase of 3.3%.

						% Chg
Atradius (€ million)	2020	2021	2022	2023	2024	23-24
Earned premiums	1,727.4	1,900.3	2,224.5	2,278.5	2,288.7	0.4%
Income from information	133.1	135.6	141.9	143.8	150.1	4.3%
Net income	1,860.5	2,035.9	2,366.4	2,422.3	2,438.8	0.7%
Technical profit/(loss) after expenses	109.3	729.5	655.4	626.4	578.5	-7.6%
% on income	5.9%	35.8%	27.7%	25.9%	23.7%
Reinsurance profit/(loss)	-28.1	-419.8	-244.8	-212.5	-157.5	25.9%
Reinsurance transfer ratio	52.1%	37.0%	37.0%	37.0%	35.0%
Net technical profit/(loss)	81.2	309.7	410.6	413.9	421.0	1.7%
% on income	4.4%	15.2%	17.4%	17.1%	17.3%
Financial profit/(loss)	5.1	17.7	44.8	59.4	101.1	70.0%
% on income	0.2%	0.9%	1.9%	2.5%	4.1%
Profit/(loss) from complementary activities	1.8	9.9	8.8	16.7	16.1	-3.2%
Corporate tax	-34.8	-90.0	-104.3	-117.7	-140.7	-19.5%
Adjustments	-2.9	-4.7	-5.3	-6.7	-5.1	23.7%
Ordinary profit/(loss)	50.4	241.8	354.6	365.6	392.3	7.3%
Non-ordinary profit/(loss)	-8.6	-5.3	-23.8	0.1	-14.6
Total profit/(loss)	41.8	236.5	330.8	365.7	377.7	3.3%

Performance of the gross combined ratio

02. GCO in 2024 04. Corporate Governance 06. Sustainability Report 08.Annual remuneration report

01. Annual panorama 03.Results in 2024 05. Business Model 07. Annual corporate governance report 09.Glossary and calendar

Mémora

Income increases by 15.8%% to reach €262.8M, with an EBITDA margin of 24.2%.

Mémora is the first group in the Iberian Peninsula regarding the organisation of funeral services, and in the management of funeral parlours, cemeteries and crematoriums with presence in 24 provinces and in Portugal

Incomes has grown by 15.8% to € 262.8 million. This strong growth is due to the fact that January 2023 is not included (due to seasonality, one of the most significant months), as the Mémora Group was acquired in February 2023. If January had been considered, income would have increased by 5.5%. Meanwhile, EBITDA stands at €63.7 million, 17.5% higher than in 2023, reflecting an EBITDA margin of 24.2%.. Ordinary profit has grown by 33.1%., reaching €18.1 million. During 2024, there were negative non recurring results amounting to-3.0 million. Overall, this business contributes a result of €15.1 million,which means an increase of 36% compared to 2023

Mémora continues with its inorganic growth strategy through the acquisition of local companies in the Iberian Peninsula. During 2024, it has increased its presence in Spain, specifically in Valladolid and Palencia, acquiring the largest funeral home in the city, and in Portugal, acquiring a funeral home in Lisbon.

Mémora (€million)	2022	2023*	2024	% Chg 23-24	12M2024
Income	32.8	227.0	262.8	15.8%	249.2
EBITDA	8.1	54.2	63.7	17.5%	61.2
Margin on EBITDA	24.7%	23.9%	24.2 %	0.3 p.p.	24.5%
Amortisations	2.1	21.3	23.6	10.8%	23.1
Technical profit/(loss) after expenses	6.0	32.9	40.0	21.6%	38.1
Financial profit/(loss)	-0.3	-16.3	-17.1	-4.9%	-20.2
Profit/(loss) before tax	5.7	16.6	23.0	38.6%	17.9
Corporate tax	1.0	3.0	4.9	63.3%	4.1
Ordinary profit/(loss)	4.8	13.6	18.1	33.1%	13.8
Non-ordinary profit/(loss)	-0.2	-2.4	-3.0	-25.0%	-2.5
Total profit/(loss)	4.6	11.1	15.1	36.0%	11.3

*Data from Mémora is included starting from February 2023.

02. GCO in 2024 04. Corporate Governance 06. Sustainability Report 08.Annual remuneration report

General expenses and commissions

The efficiency ratio is 28.8%

GCO's structure allows for consistent sharing of best business practices and process efficiencies across corporate departments and common operating platforms..

In particular, expenses in Occident declined 8.4%. In turn, Atradius expenses it have decreased 0.6%.

In relative terms, the efficiency ratio decreases slightly by 0.4 percentage points, reaching 28.8%

Expenses and commissions (€millon)	2020	2021	2022	2023	2024	% Chg. 23-24
Occident	312.6	315.0	306.6	304.2	278.6	-8.4%
Atradius	433.7	492.4	497.3	530.8	527.5	-0.6%
Non-ordinary expenses	3.8	40.3	12.6	31.6	30.2	-4.3%
Total expenses	750.1	847.7	816.5	866.6	836.3	-3.5%
Commissions	558.6	588.6	670.8	719.9	776.1	7.8%
Total expenses and commissions	1,308.6	1,436.3	1,487.3	1,586.5	1,612.4	1.6%
% of Total insurance incomes*	28.6%	29.8%	28.8%	29.2%	28.8%

% of Total insurance incomes = total acquired premiums and information incomes.

Non-ordinary profit/(loss)

During this year, non recurring negative results have occurred, mainly due to movements in non recurring financial results .

In Occident, the main impact is due to the sale of the property located in Madrid on Cedaceros Street and expenses allocated to technological projects. In Atradius, the main impact is related to technology projects.

Non-ordinary profit/(loss) (net of taxes)
(€million)	2020	2021	2022	2023	2024
Financial	-22.1	11.8	98.4	-1.7	36.4
Expenses and other non-ordinary	6.1	-33.4	-168.6	-26.8	-27.5
Taxes	5.7	9.1	19.6	6.0	-5.4
Non ordinary Occident	-10.3	-12.5	-50.6	-22.5	3.6
Financial	-5.7	8.0	-18.2	26.2	0.7
Expenses and other non-ordinary	-3.8	-16.4	-4.6	-26.1	-19.8
Taxes	0.9	3.1	-1.0	0.0	4.6
Non ordinary Atradius	-8.6	-5.3	-23.8	0.1	-14.6
Non recurring	0.0	0.0	-0.3	-3.0	-4.1
Taxes	0.0	0.0	0.1	0.5	1.1
Non ordinary Mémora	0.0	0.0	-0.2	-2.4	-3.0
Non-ordinary profit/(loss) (net of taxes)	-18.9	-17.8	-74.7	-24.9	-14.0

Reinsurance profit/(loss)

The transfer to reinsurance is a consequence of the direct application of the Group's risk management policy.

In Atradius, proportional transfers are made that bring greater stability to the results over the business cycle, as well as non proportional transfers to mitigate the potential impact of relevant claims. The Group have increased the ceding ratio at 35% with private reinsurers.

In Occident, there is a strong retention of insured business, and reinsurance protection is primarily provided through excess of loss contracts for relevant claims.

Overall, the reinsurance result amounted to €-193.3 million, with €-35.1 million coming from Occident and €-158.2 million from Atradius..

The major reinsurance brokers for both Occident and Atradius are Munich Re, Sompo International, Swiss Re, Hannover Re, SCOR Re, Nacional de Reaseguros y General Re. All of them hold a credit rating of "A" or higher.

Reinsurance (€million)	2020	2021	2022	2023	2024	% Chg. 23-24	Occident	Atradius
Premiums ceded	-1,057.1	-1,055.5	-987.9	-992.5	-940.2	5.3%	-132.8	-807.4
Net premiums ceded	-1,020.3	-1,078.2	-990.1	-984.9	-932.1	5.4%	-134.3	-797.8
% on earned premiums	-23.0%	-23.0%	-19.7%	-18.6%	-17.1%	8.1%	-4.3%	-34.9%
Commissions	344.1	390.9	349.7	377.3	371.3	-1.6%	27.3	344.1
Claims	634.8	245.3	640.4	370.3	367.4	-0.8 %	71.9	295.5
Ceded reinsurance profit/(loss)	-41.4	-442.0	-273.9	-237.3	-193.3	18.5%	-35.1	-158.2

Reinsurance distribution between lines of business

02. GCO in 2024 04. Corporate Governance 06. Sustainability Report 08.Annual remuneration report

01. Annual panorama 03.Results in 2024 05. Business Model 07. Annual corporate governance report 09.Glossary and calendar

Financial profit/(loss)

Financial investments have provided €224.5 million.

The financial result has contributed €224.5 million to the Group's income statement, increasing by 27.6%, mainly due to higher financial income in Atradius.

The ordinary financial result of Occident, decrease with €104.7 million and Atradius increase with €101.3 million as a result of higher financial incomes

Mémora reduces its result by -17.1 million, due to financial charges from financing.

Finally, non-recurring items improve the financial result by €35.2 million.

Financial profit/(loss) (€million)	2020	2021	2022	2023	2024	% Chg. 23-24
Financial income net of expenses	182.5	186.7	189.0	269.4	295.2	9.6%
Exchange-rate differences	0.0	-0.7	-0.8	0.2	-1.2	---
Subsidiary companies	1.8	2.2	1.9	1.7	1.7	-4.6%
Interest applied to life	-132.7	-127.6	-105.5	-161.5	-190.8	-18.2%
Ordinary profit/(loss) of Occident	51.6	60.6	84.7	109.8	104.7	-4.6%
% on earned premiums	1.9 %	2.2 %	3.0 %	3.6 %	3.3 %
Financial income net of expenses	12.9	8.5	28.7	64.4	109.0	69.4%
Exchange-rate differences	5.5	8.9	11.0	-3.1	3.5	---
Subsidiary companies	2.9	16.0	17.8	11.3	13.8	22.1%
% on net income from insurance	-16.9	-15.9	-12.7	-13.4	-17.1	-28.0%
Ordinary profit/(loss) from Atradius	5.1	17.7	44.8	59.4	101.3	70.5%
% on net income from insurance	0.3 %	0.9 %	1.9 %	2.5 %	4.2 %
Intra-group interest adjustment	-0.9	-0.4	-0.4	0.0	0.3	---
Adjusted ordinary profit/(loss) Atradius	4.2	17.3	44.4	59.5	101.6	70.9%
Financial profit/(loss) Mémora	0.2	0.5	-0.3	-16.3	-17.1	-4.8%
Ordinary profit	55.8	78.5	128.8	153.0	189.3	23.7%
% on net income from insurance	1.3 %	1.6 %	2.5 %	2.8 %	3.4 %
Non-ordinary profit/(loss)	-27.8	19.8	80.2	23.0	35.2	53.2%
Financial profit/(loss)	28.2	98.3	209.0	175.9	224.5	27.6%

Balance sheet

GCO closes the 2024 balance sheet with assets of €20,967.0 million.

GCO closes the 2024 balance sheet with total assets of 20,967.0 million euros, representing an 8.0% increase compared to 2023.

The main items explain the increase in the size of the balance sheet are:

• • Technical provisions increased by 598.2 million euros.
• • Financial investments increased by 1,227.3 million euros.

The Group's attributable equity amounted to €5,288.0 million.

Note that the item "cash" does not reflect the Group's liquidity position as investments in deposits and money market funds are included in Financial Investments (See Investments and Managed funds table).

Likewise, it should be remembered that GCO does not account for the surplus value of its property featured, so they appear at the amortised cost value and not at market value..

Assets (€million)	2020	2021	2022	2023	2024	% Chg. 23-24
Intangible assets and property,	1,440.1	1,358.2	1,312.0	2,102.4	2,239.3	6.5%
Investments	13,066.4	13,955.5	13,312.4	13,664.6	15,003.1	9.8%
Property investments	692.9	718.3	749.3	731.9	790.1	8.0%
Financial investments	10,895.6	11,504.0	10,436.7	11,559.0	12,786.3	10.6%
Cash and short-term assets	1,478.0	1,733.2	2,126.4	1,373.7	1,426.7	3.9%
Reinsurance of technical provisions	1,108.1	1,101.5	1,200.0	1,245.2	1,290.0	3.6%
Other assets	1,753.2	1,857.7	2,146.4	2,394.8	2,434.7	1.7%
Deferred tax assets	271.9	226.8	282.3	300.0	278.1	-7.3%
Credits	971.0	1,006.6	1,084.3	1,275.9	1,312.0	2.8%
Other assets	510.3	624.3	779.8	819.0	844.5	3.1%
Total assets	17,367.7	18,272.9	17,970.8	19,407.0	20,967.0	8.0%

Net liabilities and equity (€million)	2020	2021	2022	2023	2024	% Chg. 23-24
Permanent resources	4,138.3	4,667.7	4,374.0	5,170.4	6,016.5	16.4%
Net equity	3,937.6	4,472.8	4,182.6	5,014.2	5,768.6	15.0%
Parent company	3,578.9	4,076.6	3,782.4	4,560.6	5,288.0	15.9%
Minority interests	358.7	396.2	400.2	453.6	480.6	5.9%
Subordinated liabilities	200.7	194.9	191.3	156.2	247.9	58.7%
Technical provisions	10,982.5	11,294.5	11,730.1	12,035.6	12,633.8	5.0%
Other liabilities	2,247.0	2,310.7	1,866.7	2,201.0	2,316.7	5.3%
Other provisions	234.6	196.1	258.3	267.1	196.2	-26.5%
Deposits for ceded reinsurance	58.3	21.1	14.3	15.3	12.8	-16.3%
Deferred tax liabilities	488.8	504.2	308.7	469.2	563.2	20.0%
Debts	969.8	1,145.6	1,026.7	1,242.6	1,330.1	7.0%
Other liabilities	495.5	443.7	258.7	206.9	214.4	3.6%
Total net liabilities and equity	17,367.7	18,272.9	17,970.8	19,407.0	20,967.0	8.0%

02. GCO in 2024 04. Corporate Governance 06. Sustainability Report 08.Annual remuneration report

Investments and managed funds

At the close of 2024, the Group manages funds amounting to €16,876.4 million, €1,511.7 million more than in the previous year.

The Group primarily invests in fixed income, represents 54.3%% of the total portfolio, amounting to €8,067.0 million. The main asset is sovereign debt, representing 56.1%. The distribution of the portfolio's rating is shown graphically below. At the end of the period, 61.6% of the portfolio has an "A" rating. The portfolio duration at the end of the fiscal year is 3.94 years, and and profitability is at 3.19% .

The investment in real estate amounts to €1,826.7 million, representing 12.3% of the total portfolio. Most of the properties are located in "prime" areas of major Spanish cities. All properties intended for third-party use are situated in these areas and have a very high occupancy rate.

In 2024, the group acquired the property situated in Madrid on Méndez Álvaro street, where are the employees of the city.

Every two years, the properties are appraised by entities authorized by the regulator. The capital gains from the properties amount to €545.5 million.

Variable income represents 16.6% of the portfolio and increased by 14.0%, reflecting the positive evolution of the financial market and the sale of investment funds directly invested in equities. The investment portfolio is widely diversified and focused on high-capitalisation securities, mainly in the Spanish market (26.6%) and the rest of the European market (54.9%), which show attractive dividend returns.

The Group maintains a liquidity position in deposits at credit institutions of €623.4.million, mainly at Banco Santander and BBVA, and a significant level of cash of €1,526.1 million.

Investments and managed funds(€millons)	2020	2021	2022	2023	2024	% Chg. 23-24	%on inv. R. Co.
Real Estate Property	1,587.6	1,595.9	1,626.1	1,702.8	1,826.7	7.3%	12.3%
Fixed income	7,604.1	7,469.2	6,926.7	7,400.0	8,067.0	9.0%	54.3%
Variable income	1,656.4	2,122.0	1,768.2	2,160.2	2,461.6	14.0%	16.6%
Deposits with credit institutions	573.4	620.8	429.3	612.0	623.4	1.9%	4.2%
Other investments	229.2	249.1	243.7	236.5	239.0	1.1%	1.6%
Cash and monetary assets	1,535.5	1,841.5	2,250.4	1,435.5	1,526.1	6.3%	10.3%
Investment in investee companies	85.2	99.1	112.3	119.1	125.0	5.0%	0.8%
Total investments, risk to entity	13,271.4	13,997.6	13,356.7	13,666.0	14,868.8	8.8%	100.0%
Investments on behalf of policyholders	618.4	757.2	750.6	872.1	1,076.7	23.5%	7.2%
Pension plans and investment funds	721.3	820.5	747.4	826.7	931.0	12.6%	6.3%
Total investments, risk to policy holders	1,339.7	1,577.7	1,498.0	1,698.7	2,007.7	18.2%
Investments and managed funds	14,611.1	15,575.3	14,854.7	15,364.7	16,876.4	9.8%

Portfolio breakdown

Variable income by countries

Capital management

GCO manages its capital with the goal of maximising value for all its interest groups, maintaining a solid position through obtaining long-term results and a prudent policy for remunerating shareholders.

All Group entities maintain the necessary financial strength to develop the business strategy, taking risks prudently and meeting the required solvency needs.

In addition to the remuneration policy for shareholders, in the capital planning, the Group takes into account, among others, the following aspects:

• • The solvency ratio of the Group and its individual entities in accordance with the risk appetite.
• • Any change in the Group's risk profile.
• • The asset-liability management (ALM) of life and cash business of each of the entities.

Principles of capital management:

• • Ensuring that Group companies have sufficient capital to meet their obligations, even when faced by extraordinary events.
• • Managing capital taking into account the economic vision, as well as the objectives established in the risk appetite.
• • Optimising the capital structure through the efficient allocation of resources between entities, ensuring financial flexibility and remunerating shareholders appropriately.

The Group defines the strategic plan and the risk strategy considering the capital management policy, using the sol-vency projections made in the internal evaluation process of risks and solvency (ORSA). Capital quantification is car-ried out at the Group level and at the level of each of the entities, using different models for monitoring: ORSA, rat-ing agencies, economic and regulatory models.

Capital performance

Permanent resources at 31/12/23	5,170.4	Evolution of permanent resources at market value.
Permanent resources at market value	5,738.8
Net equity on 01/01/24	5,014.2	2002 420
(+)Consolidated profits	688.7	2014 3,168
(+) Dividends paid	-137.6	2015 3,263 2016 3,509
(+)Change in valuation adjustments	287.4	2017 3,756
Other changes	-84.1	2018 3,909
Total movements	754.4	4,585 2019
Total net equity on 31/12/24	5,768.6	4,663 2020
Subordinated debt	247.9	2021 5,192
Permanent resources at 31/12/24	6,016.5	2022 4,916
Capital gains not included in balance sheet	545.6	2023 5,739
Permanent resources at market value	6,562.2	2024 6,562

"At the end of 2024, the Group's capital increased by 14.3% of the permanent resources at market value."

The consolidated profit has contributed to the Group's financial strength. Market movements have led to an increase in the value of investments, with a positive impact of €287.4 million. Also, dividends have been paid, amounting to €137.6 million, thus reducing equity by the same amount.

On September 23, 2014, Atradius Finance BV issued subordinated debt of €250 million, replacing the €120 million bond issued in 2004. On 8th April, 2024, Atradius Finance BV announced a repurchase offer for the bonds issued by Atradius Finance BV in September 2014, with a maturity date in 2044. After the operation, in September 2024, the call option provided in the bond was exercised on the bonds that did not participate in the repurchase offer.

Additionally, on April 17, 2024, Atradius Crédito y Caución S.A. de Seguros y Reaseguros issued subordinated bonds with a nominal amount of €300 million, a 10-year maturity, and a fixed annual coupon of 5%.

Credit rating

In July 2024, Moody's confirmed the 'A1' rating with a stable outlook for the operational entities of Atradius. The improvement of this rating reflects Moody's confidence in the strength of the Atradius brand, even in situations of economic uncertainty such as that generated by COVID-19 and the Ucrania - Russia conflict. This is due to the high quality of its risk exposure, its strong economic capitalisation and its solid positioning as the world's second largest credit insurer.

In turn, A.M. Best confirmed in July 2024 the financial strength rating of A (excellent) with a stable outlook for the Group's main operating entities, both in Occident and Atradius. This rating reflects the solid balance sheet strength, excellent operating profits and appropriate capitalisation of the Group's main operating entities.

In addition, it considers that exposure to natural disasters is limited, thanks to the existence of a national coverage system (Insurance Compensation Consortium).

Solvency II

The estimated Solvency II ratio at the close of 2023 for the Group is 241,5%. The entities of the Group present average solvency II ratios of above 190%. The solvency ratio at year-end 2022 was 247%.

GCO has a robust financial and solvency position to withstand adverse situations; in fact, the ratio of solvency II is maintained around 175% even in adverse scenarios. Furthermore, it is worth noting that the equity is of high quality, with more than 96% of it being tier 1

Evolution Solvency ratio

* Data with partial internal model, estimated as of the end of 2024.

Rating of Group entities

	A.M. Best	Moody's
	'A' stable (FSR)
Occident	'a+' stable (ICR)
Atradius Crédito y	'A' stable (FSR)	'A1' stable
Caución Seg Reas	'a+' stable (ICR)	(IFS)
Atradius Trade	'A' stable (FSR)	'A1' stable
Credit Insurance, Inc.	'a+' stable (ICR)	(IFS)
Atradius Seguros de Crédito, S.A.	'A' stable (FSR)
	'a+' stable (ICR)

Stress scenarios and sensitivity analysis based on the SFCR 2023 published in May 2024.

Main ratio scenario	231.7 %
Escenarios de suscripción
Lowering premiums-5%	-0.9 %
Increased claims ratio*	-11.8 %
Set of scenarios Market scenarios	-12.5 %
Market scenarios
Variable income-10%	6.0 %
Real estate -5%	-1.5 %
Set of scenarios	4.5 %
-25% RV	7.8 %
Rates curve +100 pbs	-1.5 %
Rates curve -100 pbs	-0.5 %
Spread +100 pbs	-5.1 %
Impairment rating -10%	-0,7%
Adverse scenario**	-45,7%
No VA and no PPTT transient	-0,9%

* Fire and other property damage, motor OG +10p.p and Motor CL +5 p.p Credit insurance claims ratio 101,6%.

** -5% vol. premiums Fire and Other Damage to Goods, Motor CL and OG. +10p.p claims ratio of Fire and Other Damage to Goods and Motor OG. +5p.p claims ratio of Motor.

Low interest rate environment

• .-35% of variable income.
• -15% of properties

+200bps credit spreads Credit insurance claims ratio 101.6%.

*In note 4 of the report, the scenarios for the yield curve, equities, and real estate are updated with 2023 year-end figures.

IFRS 17

IFRS17: International accounting standard establishing a new methodology for the calculation of provisions.

Treatment of insurance liabilities

Impacts on Ordinary Management

• • Assets at market value against equity (OCI) similar to current portfolios

• • ALM Assets Liabilities management to reduce asymmetries is maintained.

• • Liabilities at market value analogous to Solvency / Embedded Value.

• • Recognition of the profit in Life Savings and Loan, different time allocation.
• • Treatment of variable income: Market value against OCI but no possibility to recognise gain/loss on sale. Investment funds at market value with changes reflected in the profit and loss account.

FINANCIAL IMPLICATIONS MANAGEMENT IMPLICATIONS

No impact On the business

• • No relevant changes in risk appetite are expected.
• • Current business management indicators (ratios and KPIs) are maintained in parallel.

With impact On the capital

• • No change in dividend distribution
• • No change in the solvency position
• • No change in cash generation

Comparison IFRS 17 vs IFRS 4

(€million)	12M2024
	IFRS4	IFRS17	Var.
Technical insurance profit/(loss)	710.4	782.2	71.8
Non-attributable expenses		-10.4	-10.4
Total technical profit/(loss)	710.4	771.8	61.4
Investment profit/(loss)	498.3	506.1	7.8
Insurance financial income or expenses	-289.0	-315.0	-25.9
Total financial profit/(loss)	209.2	191.1	-18.1
Other results	-0.7	-4.5	-3.8
Profit/(loss) before tax	918.9	958.4	39.4
Corporate tax	-216.3	-229.6	-13.4
Ordinary profit after tax	702.7	728.7	26.1
Combined ratio with attributable expenses
Occident	90.9	91.0	0.1 p.p.
Atradius	82.7	81.5	-1.2 p.p.

	12M2023
	IFRS4	IFRS17	Var.
Ordinary profit/(loss)	640.3	668.6	28.3
% Incremento	9.7%	9.0%

IFRS4 results are presented with a different breakdown than management information to make them comparable with international accounting standards.

The current management of the business is based on financial information reported under IFRS 4 to the Group's Management. Therefore, the consolidated management report is presented according to the accounting principles established by this regulation, until business management and decision-making are based on financial information reported (including the consolidated management report) under the principles set out in IFRS 17 (the applicable accounting standards for these annual accounts).

For further information, see notes 18 and 19 of the report for the Consolidated Financial Statements.

04. Corporate governance

Corporate governance model	36
Ethical framework	39
Compliance and prevention	40
Internal control	41
Risk management	42
Risk map	43

02. GCO in 2024 04. Corporate Governance 06. Sustainability Report 08.Annual remuneration report

Corporate governance model

The Board of Directors continues to focus its activity according to the principles of good governance.

The governing bodies of GCO have the goal of providing management and control structures that are suitable to protect the interests of shareholders, to monitor compliance with the strategy of the Group and to ensure the creation of value and the efficient use of resources in a transparent information framework. The Group applies practically all the recommendations of the Good Governance Code for Listed Companies of the CNMV, as well as advanced corporate governance practices. The main functions of the governing bodies are described in more detail in the Annual Corporate Governance Report and on the corporate website.

General Shareholders' Meeting

The General Shareholders' Meeting is the body that represents the shareholders. Its operation and action is regulated by the articles of association and the Regulations of the General Shareholders' Meeting. One of its main functions is to approve the accounts and the application of the profit/(loss). At GCO there are no restrictions on the right to vote and each share is entitled to one vote. The next General Shareholders´ Meeting has been convened for 30 April 2024. In order to facilitate the participation of all shareholders, GCO provides a digital debate forum as well as electronic methods that facilitate distance voting and the delegation of representation.

Board of Directors

The Board of Directors is the maximum management and supervision authority at GCO. The guiding principle is to delegate the ordinary management to the management team and to concentrate its activity on the supervisory function, which includes, among others, the following responsibilities:

• • Strategic responsibility: direct the policies.
• • Supervision responsibility: control management.
• • Communication responsibility: serve as a link between shareholders.

Its operation and action is regulated by the articles of association and the Regulation of the Board of Directors. As at 31 December 2024, the Board of Directors consisted of 9 directors, of whom 5 are proprietary, 3 are independent and 1 is executive director. During the 2024 financial year, the Board of Directors met 11 times, where it reviewed, informed and, where applicable, made decisions regarding the financial, non financial position and profits/(losses, strategic plan, acquisition operations, policies and risk control, among other issues.

Board of Directors
(at 31 December 2024)
Chairman
*José María Serra Farré
Vice Chairman and Chief Executive Officer
** Hugo Serra Calderón
Vocals
*Daniel Halpern Serra
*** Francisco Javier Pérez Farguell
*Maria Assumpta Soler Serra
*** Beatriz Molins Domingo
*** Raquel Cortizo Almeida
*Jorge Enrich Serra
*Álvaro Juncadella de Pallejáejá
Non-board member secretary
Joaquín Guallar Pérez

*Board Member (Dominical) **Executive Board Member ***Independents

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Delegate committees

In order to ensure greater efficiency in the exercise of its functions, the Board of Directors has two delegated committees: the Audit Committee and the Appointments and Remuneration Committee.

Audit committee

Chairman

Francisco Javier Pérez Farguell

Board members

Beatriz Molins Domingo

Álvaro Juncadella de Pallejá

The Board of Directors has an audit committee in accordance with the provisions of the Capital Companies Act and Additional Provision 3 of the Audit Act. Its composition and regulation are established in the Regulations of the Board of Directors.

The powers of this committee are those provided for in the aforementioned Capital Companies Act and in article 15 of the Regulations of the Board of Directors. These include:

• • Monitor the effectiveness of the internal control system.
• • Examine compliance with the Group's internal and external regulations on good governance.
• • Submit proposals for the selection, appointment and replacement of auditors to the Board of Directors and evaluate the results of each audit.
• • Know and supervise the process of preparing and presenting regulated financial information.
• • Inform the Board of Directors about (i) the financial information that the Company must make public periodically and (ii) transactions with related parties..

Appointments and Remuneration Committee

Chairman

Francisco Javier Pérez Farguell Board members

Jorge Enrich Serra Beatriz Molins Domingo

As in the case of the audit committee, its composition and regulation are established in the Capital Companies Law and in the Regulations of the Board of Directors. The main powers of this committee are those provided for in the Capital Companies Act and in article 16 of the Regulations of the Board of Directors. These include:

• Inform the Board of Directors about appointments and dismissals of senior management and propose the basic conditions for their contracts.

• • Ensure that directors meet the requirements of suitability and integrity established by the Company both at the time of their appointment and during the term of their position.
• • Review GCO's remuneration policy and report on its implementation..

Steering Committee (first line of defense)

GCO has a corporate management committee that directs and coordinates the Group's day-to-day management. The main individual entities that form part of the Group also have their own management committees.

These committees meet at least monthly.

External audit

PriceWaterhouseCoopers Auditores, S.L., performs the individual external audit of the Company and the consolidated audit of the Group, as well as of most of the entities comprising it. This provides global homogeneity between all audits and, in particular, with respect to the financial information systems.

Note 21b of the report and the Annual Corporate Governance Report contain the remuneration paid to the auditors, both for auditing services and for other services. The full content of the annual accounts, the notes to the report and the auditors' report is available at: www.cnmv.es and at www.gco.com, in the section dedicated to "Shareholders and Investors", in the "Reports and Results" section.

Assessment of the Board and the Committees

Following the recommendations included in the Code of Good Governance of listed companies, which recommends that an external expert evaluate the functioning of the Board of Directors every three years, during the 2021 financial year, an external evaluation was carried out by KPMG in its capacity as independent expert on the functioning of the Board of Directors, the delegated committees and the performance of its chairman. The result was positive, with the external expert highlighting both the suitability of the procedures and the functioning of the aforementioned bodies.

Information and transparency

The Board of Directors has approved the Annual Corporate Governance Report and the Annual Report on the Remuneration of the members of the Board of Directors for the year 2024, following the guidelines established by the regulations on transparency of listed companies.

The aforementioned reports can be accessed via the corporate website, in the section for shareholders and investors. These reports contain, among other information, details on GCO's corporate governance, the

02. GCO in 2024 04. Corporate Governance 06. Sustainability Report 08.Annual remuneration report

composition of its shareholders, the functioning of its governing bodies and the remuneration of the members of the Board of Directors during the past and current financial years.

Key functions (2nd and 3rd line of defence)

Risk management control function

• • Supports the Board of Directors and the Management Committee in identifying, evaluating and controlling all risks.
• • Supports the Board of Directors in the annual definition of the risk appetite and tolerance of the Group and its main businesses.
• • Monitors prospective risk assessment.
• • Regularly monitors the Group's risk profile and threats.

Compliance verification function

Ensures compliance with the obligations affecting the Group's organization, including both mandatory rules and those assumed voluntarily, including legal, regulatory and administrative provisions affecting the Group, as well as its own internal regulations.

Actuarial function

Exercises the powers conferred by insurance regulations.

• • Expresses an opinion on the technical provisions.
• • Assesses the data quality system used.
• • Expresses its opinion on the adequacy of the technical provisions included in the ORSA.
• • Expresses its opinion on the underwriting policy.
• • Expresses its opinion on the reinsurance policy.

Internal audit function

The Group reports directly to the Audit Committee as a delegated committee of the Board of Directors and exercises maximum oversight over the Group's internal control. In 2024, the Group has carried out a total of 68 audits, including 6 on Solvency II aspects, 4 on aspects related to the internal control system for the generation of financial information (SCIIF), 2 on the prevention of money laundering and terrorist financing and 6 on I.T security.

In total, 90 reviews were issued, 6% of which received an unsatisfactory rating.

Likewise, the Internal Audit Function manages irregularities and/or frauds of intermediaries, professionals and employees of which it has become aware. Among the reportable facts are noncompliance with the ethical code established by the Group and the manipulation or falsification of data and, in general, within the framework of the internal control system for financial information, any irregular practice linked to the internal control systems and preparation of financial information.

In this regard, in 2024, 97 internal fraud incidents were recorded (of which 23 were not accepted for processing, and of the remaining cases, 56 were deemed substantiated, 12 were unsubstantiated, and 6 cases are currently under investigation). The operational cost amounted to 73,259 euros (in 2023, 67 internal fraud incidents were detected, in total 201,378 euros).

During 2024, no cases of corruption have been confirmed in the Group, nor have any public legal cases related to corruption been registered.

Remuneration policy

This is oriented towards the recurring generation of value and sustainability of results over time. It also seeks to align the interests of the directors and employees with those of the Group's stakeholders together with prudent risk management in such a way as to be reasonable with the size of the Group, its economic situation and the market standards of comparable companies.

In accordance with the regulations, this policy is approved for periods of three years (unless amended) by the General Shareholders' Meeting. In this regard, it was last approved at the Annual General Shareholders' Meeting on 25 April 2024. In addition, the Annual Report on Remunerations of the Board of Directors is published annually, subject to consultative voting by the General Shareholders' Meeting. This report includes the remuneration received by the members of the Board of Directors, both from the company and its subsidiaries.

The remuneration policy is aligned with ESG issues, associating variable remuneration to the commitments acquired in relation to sustainability.

Principles of the policy

• • To create long term value.
• • To compensate the achievement of results based on prudent and responsible risk assumption.
• • To attract and retain the best professionals.
• • To reward the level of responsibility.
• • To ensure internal equality and external competitiveness.

The members of the Board of Directors in their roles as such, have perceived remunerations, in the concept of statutory attentions and daily subsistence allowances for attendance at meetings. In turn, the executive directors have signed, in accordance with the trade regulations, their corresponding contracts which include, among other elements, and as appropriate, a fixed remuneration, variable remuneration (of which a part is deferred), payment in kind and a system of complementary social security.

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In Note 20b of the report and in the annual remuneration report, the amounts paid to the members of the Board of Directors for all of the above items are listed.

Policy of aptitude and integrity

The Group's corporate governance not only involves the Board of Directors and other management bodies, but extends to all aspects of the organization and its teams.

The Group, through an appropriate and transparent remuneration and aptitude and integrity policy, ensures that the positions are filled by the right people.

Aptitude

It is understood that the professional is suitable if they have the training and the right profile to perform the functions entrusted to them, as well as practical experience derived from previous jobs with functions similar to those to be undertaken. In order to assess their aptitude, the Human Resources Management defines an ideal type of qualification, knowledge and experience for each role and evaluates the aptitude through the corresponding supporting documentation.

Honorability

The process for determining good repute is carried out by the Human Resources Department and the Group's Compliance Verification Unit. The evaluation of honorableness includes an assessment of their honesty and financial solvency based on reliable information on their reputation.

In accordance with the applicable regulations, the Group provides both the corresponding insurance supervisor and, where applicable, the CNMV or the Bank of Spain, as corresponding, all of the information regarding appointments and terminations of strategic personnel.

Ethical framework

The Group's code of ethics promotes responsible and transparent management, considers people its greatest asset and places the customer at the centre.

The Group's code of ethics, formulated and approved by the Board of Directors, is the document that establishes the guidelines that must govern the ethical behaviour of GCO's directors, employees, agents and collaborators in their daily work, with regard to the relationships and interactions they maintain with all interest groups.

The code of ethics, developed through different protocols, is reviewed annually to adapt it to the new realities faced by the Group and collects, systematizes and makes public its principles and values of action aligned with the cultural keys of the Group, collecting the commitments assumed in terms of good governance, ethics and regulatory compliance, and, in particular, establishing measures to prevent any form of corruption or bribery, the safeguarding of human rights, respect for people, professional development, equal opportunities, relations with collaborating companies, safety and health at work, and respect for the environment, among others, as well as the commitment to sustainability.

The code of ethics also covers the actions of the person responsible for criminal compliance at GCO, the actions taken when receiving judicial documentation or in the event of an inspection, the detection of conflicts of interest, as well as the manual of procedures and selection of suppliers and the channel for reporting irregularities and fraud.

The Group's general principles and values reflected in the code of ethics are:

• • Integrity and honesty
• • Impartiality
• • Transparency and confidentiality
• • Professionalism
• • Sustainability
• • Social commitment
• • Compliance with the law and the corporate governance system
• • Respect and safeguarding of human rights
• • Brand, image and corporate reputation

Both Atradius and Mémora Group, due to the uniqueness of their structure and business, have their own code of ethics, which observes the guidelines defined in the Group's code of ethics.

Communication and monitoring

The code of ethics is communicated to the entire organization through the intranet of each of the Group's entities, receiving appropriate training on the subject, and must also be assumed by all employees of the Group's entities. This code can be consulted on the Group's corporate website.

The Group has safeguard systems in place to ensure compliance with the code of ethics, including a channel for reporting irregularities and internal fraud through which such complaints and possible violations can be managed.

Once the communication has been received, it is managed by Corporate Internal Audit as established in the "Channel for reporting irregularities and fraud" and its implementing regulations "Procedure and methodology for the analysis of irregularities and internal fraud at GCO". During 2024, the Group received 188 communications through the existing reporting channels, of which 52 were not admitted for processing. Of the remaining 136 communications, 126 were resolved during 2024 (96 substantiated cases and 30 unsubstantiated) and 10 are pending resolution as of December 31, 2024 (in 2023, 92 communications were received through the existing reporting channels).

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The first principles included in the Group's code of ethics are integrity and honesty, which implies that any form of corruption will be avoided and the necessary measures will be implemented to combat it.

The Whistleblowing Channel for Irregularities and Fraud is aligned with the requirements established in Law 2/2023, of February 20, regulating the protection of individuals who report regulatory violations and the fight against corruption. In 2024, in compliance with this law, the Director of Internal Audit was appointed as the responsible person for the internal information system in each of the Businesses (Occident, Atradius, and Mémora).

GCO also has various internal policies and rules of conduct on specific matters such as:

• • Internal rules of conduct in the securities market.
• • Outsourcing policy and supplier selection procedures manual.
• • Manual on the prevention of money laundering and terrorist financing.
• • Personal data protection.

This management model also establishes that the Audit Committee and the Management Committee receive periodic reports on the actions in all of the above matters.

Compliance and prevention

Operating in a highly regulated sector makes the verification of compliance function essential.

The compliance function is responsible for ensuring compliance with the obligations affecting the organisation, including both mandatory and voluntary standards, assessing the potential impact of any changes in the legal environment on the Group's operations and the identification and assessment of compliance risk. It also includes advising the GCO Board of Directors and the other individual entities that make up the Group on compliance with the legal, regulatory and administrative provisions that affect the Group, as well as compliance with internal regulations.

The compliance verification function is coordinated through the Compliance Verification Committee, whose main function is to coordinate, supervise and establish common criteria for all the Group's regulated entities in relation to the application of both mandatory and voluntary regulations.

Likewise, and in particular, it is responsible for ensuring compliance with the internal regulations developed in relation to the system for the prevention and detection of crimes that may be committed by the Group's legal entities.

Atradius has its own structure comprising both the entity level compliance function and local compliance functions and supports the Group in complying with applicable laws, rules and regulations.

Prevention of money laundering and financing of terrorism

The Group has a manual for the prevention of money laundering and the financing of terrorism, which sets out, among other matters, all the internal control measures implemented by the Group entities subject to the regulations on the prevention of money laundering and the financing of terrorism.

These internal control measures are subject to an annual analysis by an external expert who in his last report considered that the Group has a satisfactory system for preventing money laundering and the financing of terrorism. The Board of Directors examines this re-port, together with proposals of necessary measures, to address the incidents identified. No claims on money laundering have been received. As part of the prevention system, the Group has implemented a training plan on the prevention of money laundering and financing of terrorism.

The Group has a Corporate Governance Framework on the prevention of money laundering and terrorist financing, which details the commitments and principles promoted and specifies the organisational structure and policies available in relation to this matter. This Framework is available on the GCO website.

Data protection and cybersecurity

The Group is committed to ensuring the trust of its stakeholders with regard to the protection, processing and privacy of personal data. In this regard, the Privacy Policy and the Policy for the Protection of Personal Data and the use of ICT resources aim to establish the Group's goals with regard to the protection of personal data and to define a working framework to guarantee and improve such protection, respecting the principles and rights established by the applicable regulations.

In addition, the Group has a Corporate Governance Framework on Personal Data Protection and Information Security which details the commitments and principles promoted in this area and specifies the organisational structure and policies available in relation to personal data protection and information security. This Framework is available on GCO's website.

As a consequence of the foregoing, GCO has undertaken to process the personal data of individuals who are related to the Group in accordance with the following principles:

• Lawfulness, fairness and transparency: in the processing of the personal data of data subjects, obtaining such data by lawful and transparent means, clearly informing them of their further

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processing, and with the explicit consent of the data subject where necessary.

• • Purpose limitation: personal data will be collected and processed for specified, explicit and legitimate purposes, in accordance with the purpose and aim informed to the data subject at the time of collection.
• • Data minimisation: the processing of personal data will be adequate, relevant and limited to what is necessary in relation to the purposes for which they were collected.
• • Accuracy: the personal data processed must be accurate and kept up to date, and inaccurate data must be deleted or rectified.
• • Limitation of the storage period: personal data undergoing processing will be kept for the time necessary for the purposes for which they were collected.
• • Integrity and confidentiality: personal data will be processed with appropriate security and protection against unauthorised or unlawful processing, loss or destruction.
• • Proactive responsibility and accountability: not only should compliance with the above principles relating to the processing of personal data be ensured, but it should also be possible to demonstrate it.

GCO has a Data Protection Officer ("DPO"), certified in accordance with the DPO Certification Scheme of the Spanish Data Protection Agency (AEPD), to ensure compliance with the applicable data protection regulations. It also has a Data Protection Committee, as the executive body responsible for the application of the regulations relating to the protection of personal data and the use of information and communication technology resources.

In the case of the credit insurance business, it also has a Data Protection Advisory Committee, which includes its DPO and the directors of various business units and, in each of the countries in which it operates, there is a representative to ensure compliance with the applicable personal data protection regulations in those territories.

Potential cyber attacks are considered one of the principal risks in the sector. For this reason, the Group also has a Chief Information Security Officer with the functions of coordinating and controlling the technical and organisational security measures of the Group's information systems required by the General Data Protection Regulations. Similarly, the Group's entities included in the credit insurance business have their own Head of Technological Security.

During 2024, the Group received no substantiated complaints regarding breaches of customer privacy from third parties (0 complaints in 2023) and received 3 requests from regulatory authorities (2 complaints in 2023), which were rejected by the AEPD. On the other hand, no cases of leaks, theft or loss of customer data have been identified. Likewise, in 2024 there was 4 cybersecurity incident (1 incident in 2023) and 1 security breach affecting personal data (no breach in 2023).

Fight against fraud, corruption and bribery

The Group has procedures in place in the fight against fraud to help identify possible malicious acts or omissions in the taking out of insurance, in the reporting of claims, or in the proof of damages, which are intended for the purpose of improper gain, money laundering and financing of terrorism or unjust enrichment.

The Group also has a whistle-blowing channel for reporting irregularities and fraud, which allows any person to inform the Corporate Internal Audit Department of any conduct that may involve the commission of criminal offences via GCO's website.

The Corporate Internal Audit Department handles any irregularities and/or fraud by intermediaries, professionals and employees of which it has become aware. Reportable events include non-compliance with the code of ethics established by GCO and the manipulation or falsification of data and, in general, within the framework of the internal control system for financial information, any irregular practice linked to the internal control systems and the preparation of financial information..

Reliability of financial information

Following the recommendations of the CNMV regarding the Internal Control System for Financial Information (SCIIF), in fiscal year 2024 work has continued to reinforce the reliability of the financial information communicated to the markets through the documentation of the processes.

Internal control

The system is based on a solid culture of control where the fundamental principles are clearly defined and notified to all levels of the organisation. The internal control system is subject to a monitoring process that verifies proper operation over time. Comprehensive system monitoring is performed by the management of the Internal Corporate Audit.

Within the control environment, the Group focuses on controls for financial and property investments. In this sense, the concentration and dispersal of fixed income and equity, the average rating of the portfolio, exposures by rating and how they have changed, changes in the optionality of assets due to changes in interest rates, and the performance of underlying assets are monitored at monthly intervals.

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In addition, in 2024 more progress was made regarding improving the quality of the risk map. In total, the Group avails of over 5,000 internal controls.

Risk management

GCO's risk management strategy and policies are the responsibility of GCO's Board of Directors.

Control of risk management system

The Group's risk management control system is based on the "three lines of defence" risk management model.

1st Line - Risk assumption and liability

This consists of the business units that are responsible for the risk assumed and their management.

2nd Line - Control and monitoring

This consists of the risk management control function, compliance verification function and actuarial function. Its goal is to define controls to ensure compliance with risk management processes and control policies.

3rd line - Internal audit function

The function of the internal audit is responsible for carrying out an independent evaluation of the effectiveness of the government system, the risk management system and the internal control. From the risk management control area, all significant aspects relative to risk management are handled, marking guidelines and reference criteria that are assumed by the entities with the adaptations necessary.

Risk strategy

GCO defines its risk strategy as the level of risk that the entities that form part of it are willing to assume, and ensures that its integration with the business plan permits compliance with the risk appetite approved by the Board of Directors.

GCO has defined the following concepts for risk management:

Risk profile

Risk assumed in terms of solvency.

Risk appetite

Risk in terms of solvency that the entities that make up the Group anticipate to accept in order to achieve their goals.

Risk tolerance

Maximum deviation with regards to the appetite they are willing to assume (tolerate).

Risk limits

Operational limits established to comply with the risk strategy.

Alert indicators

Additionally, the Group has a series of early warning indicators that serve as a basis for both monitoring risks and complying with the risk appetite approved by the Board of Directors.

Information and communication

The governing bodies receive information regarding the quantification of the principal risks the Group is exposed to and the capital resources available to address these risks at least once per quarter. Additionally, they receive information on compliance with the limits established for risk appetite.

Since 2016, the Group and its member insurance entities have published an annual report on their financial and solvency situation, detailing and quantifying the risks they are exposed to.

Self-assessment process of risks and solvency

Own Risk and Solvency Assessment (ORSA) is the internal risk and solvency assessment process that is the core of the risk management system. Its aim is to identify, assess, monitor, manage and report on shortand longterm risks.

The ORSA is carried out at least once a year and evaluates:

• • Compliance with capital requirements.
• • The deviation between the risk and solvency profile.
• • Compliance with capital requirements in the event of adverse situations.

The Group performs a back-testing analysis between the estimates of the capital requirements of the ORSA year and its results at the end of the year.

Risk management policies

To ensure effective risk management, the Group has a set of risk management policies.

Each of these policies identifies the own risks of each affected area, establishes risk quantification measures, determines actions to supervise and control said risks, establishes measures to mitigate the impact of the same and determines the information and internal control systems to control and manage the risks.

ESG risks

ESG risks are defined as environmental, social or governance events or factors that, if they occur, could cause a material adverse impact.

GCO understands, prevents and has the ambition to reduce ESG risks, as well as to manage in the best possible way the opportunities resulting from offering safe and quality protection against these risks to all its stakeholders.

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Risk map

QUANTITATIVE RISKS INCLUDED IN THE SOLVENCY RATIO
Level one	Description	Internal Regulations	External Regulations	Quantification	Mitigation
Credit Underwriting Risk	Risk of loss or of adverse change in the value of commitments contracted due to possible inadequate pricing and provisioning assumptions. In the case of credit insurance, the risk arises from the non payment by our buyers (customers) of our customers, and in the case of surety, from the non fulfilment of the contractual, legal or fiscal obligations of our customers.	– Underwriting guidelines – Authorization matrices – Buyer rating monitoring and credit limit concessions – Buyer Underwriting Guidelines – Atradius Risk Governance Structure – "Risk Boundaries Credit Insurance (+ other products) – Risk Appetite – Pricing regulations – Underwriting guidelines for Buyer – Atradius Risk Governance Structure – Risk limits in credit insurance and other products	– National and international insurance regulations – Best practice guide – IFRS and local regulations	– Internal Model (except ICP) – ICP: Solvency II Standard Formula – Analyzed in risk self assessments and ORSA – Scenario analysis	– Reinsurance policy – DEM (Dynamic Exposure Management) – - Strict underwriting control and combined ratio – Control and monitoring of buyer default risk – Report on the adequacy of the technical provisions calculation – Annual actuarial report – Policy characteristics – - Claims management
Non-life Underwriting Risk	Risk of loss or of adverse change in the value of commitments contracted due to possible inadequate pricing and provisioning assumption	– Underwriting and reserving policies – Reinsurance policy – Product control and governance process policy – Underwriting technical manual and standards – Data quality policy – Risk management system policy	– National and international insurance regulations – Code of good practices – Insurance Compensation Consortium"	– Solvency II Standard Formula – It is analyzed in the risk self-assessments and ORSA – Scenario analysis – Appraisal Value – Rating agencies – Business indicators (Average cost, average premium per product, cancellation rate)	– Strict control and monitoring of the combined ratio – Non-life catastrophic risks are also mitigated through the CCS – Business value – Reinsurance policy – Maintaining business diversification – Rep- ort on the adequacy of technical provisions calculation – Annual actuarial report – Analysis and management in underwriting meetings and business committees for Autos/ Individuals/Companies
Health Underwriting Risk	Risk of loss or of adverse change in the value of commitments contracted due to possible inadequate pricing and provisioning assumptions	– Underwriting and reserving policies – Reinsurance policy – Product control and governance process policy – Underwriting technical manual and standards – Data quality policy – Risk management system policy	– National and international insurance regulations – Code of good practices	– Solvency II Standard Formula – Risk Self-Assessments and ORSA – Embedded Value – Rating Agencies	– Strict control and monitoring of the combined ratio – Non-life catastrophic risks are also mitigated through the CCS – Business value – Reinsurance policy – Maintaining business diversification – Report on the adequacy of the technical provisions calculation – Annual actuarial report – Analysis and management in underwriting meetings and business committees for Autos/ Individuals/Companies
Life and funeral insurance subscription	Risk of loss or adverse change in the value of the commitments undertaken as a result of the possible inadequacy of the pricing and provisioning assumptions. It is broken down into biometric risks (which include mortality, longevity, morbidity/ disability risks) and non biometric risks (portfolio decline, expenses, review and catastrophe).	– Underwriting and reserve policies – Reinsurance policy – Product control and governance process policy – Underwriting manual and technical standards – Data quality policy – Risk management system policy	– National and international insurance regulations – Code of good practices	– Solvency II Standard Formula – It is analyzed in the risk self-assessments and ORSA – Embedded Value – Profit test – Rating agencies – Business indicators (Technical margin, expense margin, cancellation rate)	– Strict control and monitoring of rate sufficiency and claims experience – Business value and profit test – Reinsurance policy – Maintaining business diversification – Monthly reconciliation of provisions (accounting) – Monthly margin account (Life Profit and Loss Account) – Annual actuarial report – Report on the adequacy of the technical provisions calculation – Analysis and management in Life business committees

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Market risk	Risk of loss or adverse change in financial position resulting, directly or indirectly, from fluctuations in the level and volatility of market prices of assets, liabilities and financial instruments	– Investment policy – Management based on the principle of prudence – Asset and liability valuation policy	– National and international insurance regulations – CNMV regulations – Distribution regulations – Code of good practices	– Solvency II Standard Formula – It is analyzed in the risk self-assessments and ORSA – VaR (Value at Risk) – Scenario analysis – Liabilities to cover commitments. Detailed analysis of asset liability adequacy (ALM) as well as sensitivity analysis to future scenarios – Portfolio sheets	– Asset management based on the principle of prudence – Control of different types of portfolios according to objectives – Liabilities to cover commitments. Detailed analysis of asset-liability adequacy (ALM) as well as sensitivity analysis to future scenarios – Investment policy defined by the Board of Directors – Average credit rating to maintain – Dispersion and diversification limits – Analysis and management in the 10G meetings and Investment Committees
Counterparty risk	Counterparty risk arises from losses arising from unexpected default or deterioration in the credit quality of counterparties.	– Investment policy – Reinsurance policy – Management based on the principle of prudence	– National and international insurance regulations – CNMV regulations – Distribution regulations – Code of good practices	– Solvency II Standard Formula – It is analyzed in the risk self-assessments and ORSA – Scenario analysis	– Reinsurance policy (Reinsurance with counterparties with good credit rating) – Diversified investment portfolio with high rating – Control of the credit rating of the main financial counterparties and the reinsurance panel
Operational risk	Risk of loss resulting from the inadequacy or dysfunction of internal processes, personnel, systems, or external processes. Among operational risks, special emphasis is placed on the risk of non-compliance (as a consequence of increasing regulatory developments and supervisory requirements impacting our activities) and cybersecurity risk	– SolvPRC Tool / Risk Register – Contingency plans – Data security and quality policy – Code of ethics – Fraud response procedure (whistleblower channel) – Operational Risk Management Policy – Internal Control Policy – Compliance Verification Policy – Outsourcing Policy – Security policies, regulations, and procedures (Tier I, Tier II, and Tier III) – Operational Risk Management Policy of Atradius – Business Continuity Management Policy of Atradius – Atradius Internal Control System Framework – Atradius Data Quality Policy	– National and international insurance regulations – Three lines of defense principles (COSO framework) – Code of good practices – Anti-money laundering regulations: EBA Guidelines on cooperation and information exchange in AML/CFT – Investment product regulations: PRIIPs Regulation and the Insurance Product Information Document (IPID)	– Solvency II Standard Formula – It is analyzed in the risk self-assessments and ORSA – Monitored and measured through the SolvPRC tool (measured in terms of probability of occurrence and severity) or Risk Register	– Internal control system – SolvPRC – Control of inherent and residual risk through the implementation of preventive and mitigation controls in the event of an occurrence – Cybersecurity action plan – Contingency plans – Risk and Compliance Governance Portal for Atradius – Awareness and outreach across the network, and specific training for senior management – Continuous adaptation to new threats as a result of various audits

Índex Annual consolidated financial report 2024

QUALITATIVE RISKS NOT INCLUDED IN THE SOLVENCY RATIO
Level one	Description	Internal Regulations	External Regulations	Quantification	Mitigation
Liquidity risk	Risk of defaulting on obligations due to the inability to obtain the necessary liquidity even with sufficient assets	– Investment policy – Management based on the principle of prudence – Reinsurance policy	– National and international insurance regulations – CNMV regulations – Distribution regulations – Code of good practices	– It is analyzed in the risk self-assessments and ORSA – It is analyzed in the cash flow statements and investment statements – Scenario analysis	– Asset management based on prudence – Control of different types of portfolios – Liabilities to cover commitments. Detailed analysis of asset liability adequacy (ALM) as well as sensitivity analysis to future scenarios – Type of financial investments in the portfolio – Dispersion and diversification limits – Low level of indebtedness
Risks of the political and economic environmen	Risk arising from changes in the political, economic, and competitive environment that may impact the company's interests and results. Political risk is the risk of potential impact on the economic interests of companies due to political changes, whether at the local, national, or international level. Economic risk, in turn, is the risk that measures possible disruptions, as well as the uncertainty generated, which may affect the Group's results due to changes in the national and international economic environment. Finally, competitive risk arises from price pressures, strategic challenges from competitors, and the differentiation and adaptation of products in relation to our competitors.	– Underwriting regulations – Written policies (in particular, investment policy) – Occupational risk prevention regulations – Internal Code of Conduct	– European regulation – Sectoral analysis – Global regulation related to the economic recession and the pandemic	– It is analyzed in the risk self-assessments and ORSA – Certain risks are partially covered by the Solvency II Standard Formula – Scenario analysis – Portfolio sheets	– Occupational risk prevention regulations to protect our employees and clients – Risk underwriting – Strategic planning process and its monitoring – Sectoral analysis. In the Credit business, specific "event-driven" monitoring and analysis is carried out by the Economic Research Unit – Internal audit, internal control, complaints and whistleblower channel – Geographical and line of-business diversification in traditional business. Geographical and sectoral diversification in the Credit business – Contingency plans – Analysis and management in the 10G meetings and Investment Committees

Social, environmental and governance risk	Risk caused by the possibility of losses derived from environmental, social, and governance (ESG) factors.	– Statutes of the General Meeting - – Board of Directors regulations – Anti-money laundering and anti-corruption policy – Code of ethics – Sustainability policy – Climate change and environmental policy – Tax policy – Sustainability Master Plan – Sustainable Investment Policy	– Non-financial information law – Climate change and energy transition law – Sustainable Development Goals and United Nations 2030 Agenda – Recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD) – Environmental Taxonomy Regulation – Non-financial information disclosure regulation or SFDR – Universal Declaration of Human Rights - United Nations	– It is analyzed in the risk self-assessments and ORSA – Adverse climate scenario analysis – Taxonomy indicators – Sustainability report – Regulatory updates presented to the sustainability committee (including new regulations related to climate change: regulatory transition risk indicator)	– Conduct internal and external audits (climate scenarios, Board of Directors, technological environment, and data governance) – Internal controls – Whistleblower channel – Occupational health and safety regulations – Code of ethics – Written policies (e.g., sustainability policy, climate change and environmental policy, etc.) – Sustainability Master Plan – Environmental Management System in accordance with ISO 14001 – HR Equality Plan – Procedure for handling irregularities and fraud
Other risks	Risks not included in the previous groups, such as the risk of loss resulting from inadequate strategic decisions, defective execution of those decisions, or inadequate adaptation to changes in the economic or social environment (Strategic risk); the risk associated with the occurrence of an event that negatively impacts the Group's reputation (Reputational risk); the risk arising from the interdependence of existing risks between Group entities (Contagion risk); or the risk of a decrease in the company's ability to meet its financial and regulatory obligations due to a deterioration in its solvency position (Solvency decline risk).	– Written policies – Reputational risk management policy – Social media usage manual	– Advertising regulations – UNESPA guidelines to which the company has adhered – Directives - Guidelines under the Insurance Distribution Directive on Insurance-based investment products that incorporate a structure which makes it difficult for the customer to understand the risks involved	– It is analyzed in the risk self-assessments and ORSA – Indicators for tracking news in the media and mentions across social media – Indicators for tracking brand awareness	– Thorough monitoring of the medium-term plan – Code of ethics – Procedure for handling irregularities and fraud – Fit and proper requirements – Ongoing monitoring of business units – Reputational risk management protocols – Monitoring of information published in the media and on social media – Control of the social media usage manual – Regular communication meetings with corporate departments and companies – Tracking brand awareness

05. Business Model

Business model	48
Sustainability	49
Innovation	50
GCO Ventures	51
Creating value	51
Business units	52
Corporate structure	53

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Business model

The Group's purpose is to be leaders in protecting and supporting people and companies at all stages of their lives, to ensure their peace of mind in the present and their confidence in the future.

GCO is a multinational insurance company operating in more than 50 countries through a diversified and balanced business portfolio, serving more than 4.6 million customers.

The membership of different entities in the Group implies, without prejudice to their legal autonomy, their integration into the corporate structure through coordination and supervision of their activities by the parent entity.

Grupo Catalana Occidente S.A. is the holding company that acts as the parent company of the Group, whose shares are listed on the Madrid and Barcelona stock exchanges, on the Mercado Continuo, and is subject to the supervision of the CNMV. Furthermore, as an insurance company, the Group is subject to the supervision of the Dirección General de Seguros y Fondos de Pensiones (DGSFP)..

In Spain, GCO occupies seventh position in the ranking with a market share of 4.8%, 5.9% in non-life and 3.0% in life. Likewise, in credit insurance the Group is the second entity worldwide with a market share of 24.4%..

The Group's position in the Spanish insurance market

Source: ICEA end of 2024

The Group bases its strategy on three pillars:

Growth

Definition of the markets that the Group targets, development of appropriate products and services and establishment of appropriate distribution channels to reach the customer.

Profitability

Recurring and sustained profitability through technical-actuarial rigor, diversification in investments and processes that allow for tight cost ratios and quality service

Solvency

Prioritising the generation and continuous growth of own resources in order to fund the expansion of the Group, guarantee ample compliance with the commitments assumed and ensure adequate returns to shareholders.

Relationship with stakeholders

GCO has identified six stakeholders based on the impact its activity has on them and the relevance of each to it.

The Group is committed to each of them, which means maintaining a constant, transparent dialogue that allows us to understand them and integrate them into the GCO's activities. To this end, there are various communication channels through which a fluid, close and transparent relationship is maintained with stakeholders.

Moreover, the various channels make it possible to identify the needs and expectations of all of them and, in this way, and by applying the principle of transparency included in the code of ethics, to respond to them.

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Sustainability

For GCO, sustainability is the voluntary commitment to integrate risks and responsible management of economic, social and environmental issues into its strategy, to promote ethical behaviour with its stakeholders, to rigorously apply the principles of good governance and to contribute to the well-being of society through the creation of sustainable value.

Main GCO advances in ESG matters in 2024.

External sustainability rating

In May 2024, the agency Sustainalytics reviewed the Group's ESG rating, awarding it a score of 16.9 points. As a result, the organization is considered to have a low risk of experiencing material financial impacts related to ESG factors, placing the Group among the top 40 companies with the best ESG ratings in the insurance sector (over 300 companies).

Creation of sustainable value

of insured employees trasferred to the society

Proximity Insurance specialists

More than 14,500 mediators 160 years of experience 1,371 offices Global offer more than 50 countries Sustainable model

Our commitment to the SDGs

Average payment period to suppliers.

The Group has no outstanding payments to suppliers with a delay longer than the legal limit (30 days unless otherwise agreed by the parties). For more information, see note 21c in the Notes to the financial statements.

For further details, you can consult the sustainability report included in this consolidated management report.

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Innovation

The culture, offer and customer, main areas of the transformation plan of GCO.

The Group considers that a culture that embraces change and, at the same time, encourages and motivates innovation among employees, is a fundamental pillar in order to be able to adapt the offer of products and services to meet the needs of all kinds of customers. In 2024, the Group invested €89,91 million in innovation (€95,1 million in 2023) and in 80 R&D&I projects (47 projects in 2023).

Xplora Programme

Xplora is the Group's intrapreneurship programme that helps the organisation to understand, own and enthusiastically promote an innovative corporate culture.

This programme includes training in innovation and a platform designed so that employees can propose ideas that allow GCO to improve its products and services.

Xplora Space Platform

Through the Xplora Space platform, Group employees can read news about new trends in innovation and contribute ideas to challenges launched by the organisation.

In the last year, employees have contributed more than 20 ideas to the 2 challenges proposed in the program, 13 ideas have been supported, and 2 are in the project phase. Additionally, two pilots have been launched: one on customer communications about sustainable repair techniques, and another on training videos about savings with the help of our financial consultants.

Training in innovation with Xplora Academy and Xplora Inspira

Xplora Academy and Xplora Inspira are two programs designed to drive internal innovation and the digital transformation of GCO. Through exclusive events, inspiring talks, and experiential workshops, both programs aim to strengthen employees' skills and foster a culture of continuous innovation. In 2024, two events were held on neuromarketing and embedded insurance.

Xplora Stars for the development of new products

Xplora Stars was launched in 2020 with the goal of developing new products and services in the areas of cybersecurity, urban mobility, and the third and fourth age, with the collaboration and ideas of employees and insurance agents from the Group for their development. In 2023, a new on-demand, insurance product was developed to meet the growing demand for pay-per-use solutions in the insurance sector. In 2024, it began to be gradually scaled to all customers, offering accident coverage for sports activities. On the other hand, work is underway on family security services for regular travel.

Atradius Business Transformation Programme

The Atradius Business Transformation programme addresses the challenges of new digital trends (such as big data or blockchain) and offers credit insurance business employees the opportunity to play a role in them through various initiatives.

These include Shaping Tomorrow Together, an initiative designed to prepare Atradius employees for the new challenges brought about by the adoption of new technologies.

In addition, the Atradius Academy learning platform makes online courses available to all Atradius employees and sends out newsletters on digital trends.

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Innovation for the client

In 2024, innovation initiatives continued to be developed, including the following:

• • Financing is offered, through a credit bank, so that customers can afford to pay for the repair of noncovered motor vehicle claims.
• • Your digital health is a comprehensive health service that focuses on prevention and care. It provides customers with access to a team of medical specialists, as well as different services such as medical chat, video-consultation or medical prescriptions.
• • In the contact centre, a specific channel has been created for elderly customers in order to speed up and improve customer service. For this, the operators have specific training to prepare them to properly assist people over 65 years of age.
• • Personalised videos are sent to customers explaining the content of their policies, with the aim of informing them in an agile, complete and individualised manner.
• • GCO is working on the development of on-demand insurance with the aim of responding to the pace of life and the needs of the new generations. Under this proposal, the aim is to provide flexibility in contracting, allowing coverage to be purchased at a specific time and for a specific duration.
• • Within Atrium, the online policy management portal for credit insurance customers, Atrium Analyser has been implemented, a tool that allows customers to see themselves as buyers, to see how Atradius can help them grow their business and allows them to find quality buyers.
• • Through customer feedback, the E2E customer journey has been improved in Atradius Agora, the ecommerce platform launched by Atradius to enable its customers to submit and monitor debt collection cases, pay invoices and communicate with their account manager.

GCO Ventures

GCO Ventures is the corporate venturing entity of GCO, created to identify, build, and launch new businesses with the aim of contributing to the growth and diversification of the Group. GCO Ventures selects projects aligned with GCO's strategy and priorities in the areas of home, health, and integrated services and insurance. The goal is to transform these initiatives into sustainable and prosperous businesses, supporting entrepreneurs in the early stages of their projects to accelerate their development and consolidation. To achieve this, GCO Ventures offers a comprehensive support model that is structured through:

• • Venture building: collaborating closely with entrepreneurs to help them develop their ideas, validate business models, and successfully grow them. The approach includes specialized resources, tools, and mentorship to scale their projects successfully.
• • Venture capital: Providing funding to start-ups either directly or through venture capital funds, with the goal of giving them the opportunity to propel their ideas and refine their business models. Through this area of expertise, GCO Ventures also engages in creating value for the start-up and all stakeholders..

At the end of 2024, GCO Ventures has a portfolio consisting of 4 direct investment companies and more than 210 start-ups supported indirectly through investment funds. The portfolio spans over 15 verticals and has international presence, mainly in Europe and the United States. In 2024, the creation and launch of two start-ups stand out:

• • Vivara is a proptech dedicated to the comprehensive management of residential rentals. Its offering includes everything from selecting the best tenant and guaranteeing rents to handling tasks throughout the lease period.
• • Musky is a pet-tech focused on offering pet insurance, providing innovative solutions for a constantly growing sector.

Creating value

GCO's vocation is to consolidate a solid business and generate sustainable value. In 2024, the Group has distributed €5,065.0 million to society

Sustainable value is the result of focusing the Group's activity not only on obtaining good financial results but also on promoting the well-being of the people who make up its interest groups and of society as a whole in the short and long term.

€ million	2022	2023	2024
Direct economic value generated	4,175.8	5,054.6	5,191.1
Distributed economic value	4,110.6	4,987.1	5,065.0
Facilities provided to customers	2,306.9	2,992.3	2,940.2
Public Administrations	582.8	646.3	724.8
Intermediaries	588.9	643.3	689.9
Employees	513.1	576.2	568.6
Shareholders	116.6	126.6	137.6
Contributions to non-profit organizations and foundations	2.3	2.4	3.9
Retained economic value	65.2	67.5	126.0

*The direct economic value generated is the aggregation of the distributed value and the retained value. Contributions to foundations and non-profit entities include contributions from Group entities to the Occident Foundation.

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Business units

Occident

Occident, with a wide range of insurance products, primarily targets families and SMEs through a network of professional intermediaries and 1,215 offices in Spain

The lines of business offered are:

Family-home, business, communities, offices and SMEs.

Industrial products, engineering, accident and thirth party liabilityl

Life risk, life savings, pension plans and investment funds, as well as funeral and health.

Coverages related to motor and transport fleets

In 2024, the unification of all traditional insurance brands was successfully completed, including the integration of NorteHispana Seguros under the Occident brand. This consolidation finalizes the process of simplifying the corporate structure, ensuring greater operational efficiency and a faster, more flexible response to market needs, while maintaining the commitment to provide excellent service to our customers.

Atradius

Atradius provides products and services that contribute to the growth of companies throughout the world by protecting them from the default risk associated with selling products and services with payment in instalments. This is a business structurally linked to economic performance and, in particular, to the performance of corporate defaults worldwide and of the global trade volume.

The brands of the Group for credit insurance are:

Mémora

Mémora supports families before, during, and after the farewell of their loved ones and offers a comprehensive funeral service that places families at the center.

The business culture is based on "people who care for people," a key concept for having a team focused on providing the best service every day. This team combine excellent training with a vocation for service, this contributing to the purpose of caring for all individuals at every stage of the end-of-life process and encouraing a change of mentality around death.

The volume of Mémora amounts to €262.8 million, which represents 4.4% of the Group's total.

The lines of business offered are::

Protects against financial losses due to the inability of a buyer to pay for goods purchased on credit.

Protects the beneficiary if a supplier does not comply with its contractual

Wide range of reinsurance options for insurance companies of the main insurers in the world.

1. GCO in 2024 04. Corporate Governance 06. Sustainability Report 08.Annual remuneration report

Corporate structure

GCO is made up of more than 50 entities, mainly linked to the insurance business. The parent company is Grupo Catalana Occidente, S.A., which administers and manages, directly or indirectly, all the shares of the different entities that make it up.

The following table reflects the main entities included in the GCO consolidation scope at the end of 2024.

All of them have their own structure and organisational network, independent from that of the other insurance companies in the Group. From an organisational point of view, they have a structure with centralisation of functions and decentralisation of operations, with the following service centers: two subscription centres, six claims centres, an administrative accounting centre and a call centre.

GCO
Main entities
Occident Seguros	Occident GCO Mediadores	GCO Gestión de Activos
	S. Órbita	Sogesco
	Occident Direct	Hercasol SICAV
	Occident Inversions	GCO Activos Inmobiliarios
	Occident GCO Capital Ag. Valores	GCO Ventures
	Cosalud Servicios
	NH Mediación
	GCO Tecnología y Servicios
	Prepersa
	GCO Contact Center
	Occident Pensiones
	Occident Hipotecaria
	Grupo Asistea
	Grupo Mémora
Atradius Crédito y Caución	Atradius Collections	Grupo Compañía Española Crédito y Caución
Atradius IH	Atradius Dutch State Business	Atradius NV
Atradius Seguros de Crédito México	Atradius Information Services	Atradius Participations Holding
Crédito y Caución Seguradora de Crédito e Grantias Brazil	Iberinform International	Atradius Finance
INSURANCE COMPANIES	SUPPLEMENTARY INSURANCE COMPANIES	INVESTMENT COMPANIES

Occident

Mémora

Atradius

06. Consolidated Non-Financial Information Statement and Sustainability Information (Sustainability report)

In accordance with Directive (EU) 2022/2464 of the European Parliament and Council, of December 14, 2022, on Corporate Sustainability Reporting (CSRD), Consolidated Non-Financial Information Statement and Sustainability Information (hereinafter Sustainability report) of GCO is included in this Management Report, in a separate section. The content of this Report is based on European sustainability reporting standards (ESRS) and has been verified by the independent assurance service provider PricewaterhouseCoopers Auditores S.L. This Directive replaces the previous Directive 2014/95/EU of October 22, on non-financial reporting and diversity (NFRD), which was incorporated into Spanish law through Law 11/2018 of December 28 on the disclosure of non-financial information and diversity. Although the information requirements of the ESRS are more extensive than those of Law 11/2018, certain breakdowns required by the latter are not expressly covered by the ESRS, and entities must still take them into account to comply with the law. GCO's information related to these requirements is included in Annex II – Additional Information Law 11/2018 of GCO's Sustainability Report and, to ensure comparability, aspects not covered by the ESRS have continued to follow the Global Reporting Initiative (GRI) framework used in previous years.

Contents

Sustainability report	01. General information (ESRS 2)	56
	Guidelines for preparing the Sustainability Report	57
	Sustainability governance	57
	Sustainability strategy	60
	Management of impacts, risks and opportunities	63
	02. Environmental information (ESRS E)	65
	Climate change (E1)	66
	03. Social information (ESRS S)	74
	Own workforce (S1)	75
	Workers in the value chain (S2)	87
	Customers and end-users (S4)	93
	04. Governance information (ESRS G)	98
	Business conduct (G1)	99
	05. Business information	104
	Responsible management of products and services	105
	Sustainable investment	109
	06. Contributing to society	112
	Contribution to society and local communities	113
	07. Annex I – Additional taxonomy information	118
	08. Annex II – Additional information Law 11/2018	140
	09. Annex III - Content Index as per ESRS	147
	10. External assurance report	156

Index				Sustainability Report
01. General information	03. Social information	05. Business information	07. Annex I - Taxonomy	09. Annex III - ESRS Index
02. Environmental information 04. Governance information 06. Contributing to society			08. Annex II - Law 11/2018	10. External assurance report

1. General information (ESRS 2)

Guidelines for preparing the Sustainability Report

General guidelines for preparing the Sustainability report (BP-1)

This Sustainability Report has been prepared on a consolidated basis, with the same scope as the financial statements, covering GCO and the entities that comprise it.

The Sustainability Report covers all phases of the value chain, with specific information about the value chain included in various sections of the Report.

Information regarding the regulatory framework on which this Sustainability Report has been prepared can be found on page 54 of the 2024 Consolidated Annual Financial Report.

Information on specific circumstances (BP-2)

The time horizons used in this report are the same as those adopted in the financial statements:

• Short-term: less than 1 years
• Medium-term: 1 to 5 years
• Long-term: over 5 years

Where the reported information has a different time horizon, it will be specified in the relevant section or table with a footnote.

Regarding the monetary amounts disclosed throughout the report, any assumptions used in the calculations will be indicated in the corresponding section.

No comparison with figures from previous periods is included, as this is the first year of sustainability information disclosure under the CSRD directive and its development standards (ESRS).

Where information is incorporated by reference or estimates are made, this shall be explicitly stated.

Sustainability governance

The role of the administrative, management and supervisory bodies (GOV-1)

Board of Directors

The Board of Directors of GCO is ultimately responsible for overseeing sustainability-related issues, including risks, opportunities, and impacts. It is also responsible for approving sustainability policies and the sustainability goals set out in the Sustainability Master Plan. Furthermore, it is responsible for preparing this report.

In matters of diversity and experience on the Board of Directors, GCO has a Policy on diversity in the composition of the Board of Directors and the selection of Board members that lays down the principles, criteria and fundamental guidelines that should govern the selection process relating to the appointment and re-election of directors.

The principles included in the Policy include fostering diversity in the composition of the Board in terms of knowledge, experience, age and gender; nondiscrimination and equal treatment in the selection process; transparency in the process and compliance with applicable regulations.

With regard to the selection criteria, it provides that the GCO Board of Directors will regularly analyse its structure, size and composition, ensuring that proposals for the appointment or re-election of directors foster diversity on the Board. Furthermore, the Appointments and Remuneration Committee is responsible for setting a target for the representation of the under-represented sex and for drawing up guidelines on how to achieve this target.

Additionally, the Group has the Policy on Fitness and Good Repute, which governs the requirements that must be met by the Group's strategic personnel in order to ensure that the positions are held by suitable persons

At the close of the financial year, the Group's Board of Directors is composed of 9 directors, of which 5 are proprietary, 3 are independent, and 1 is executive. The proportion of women on the Group's Board of Directors represents 33.3% of its total members. On the other hand, the number of women on the Group's Board of Directors represents 33.3% of its total members.

The Group follows the recommendation included in the Code of Good Corporate Governance of the National Securities Market Commission (CNMV), which recommends that an external expert assess the operation of the Board of Directors every three years. Thus, in 2024 an external evaluation was carried out by KPMG, as an independent expert, on the functioning of the Group's Board of Directors, its delegated committees, and the performance of its chairman. The result was positive, highlighting the appropriateness of the procedures, the functioning of the mentioned bodies, and the quality of the training received on sustainability matters.

Regarding business conduct, the Board of Directors is responsible for approving the Group's Code of Ethics, as well as all policies derived from it, such as the Internal Code of Conduct, the Whistleblowing Channel for irregularities and fraud, the Manual on the Prevention of Money Laundering and Financing of Terrorism., the Procedure and Methodology for the Analysis of Internal Irregularities and Fraud, and the Supplier Selection Procedures Manual.

Governing bodies

Grupo Catalana Occidente S.A., as the parent company of the Group and a listed entity, has a Senior Management team made up of executives who directly report to the Board of Directors or the company's CEO, including the internal auditor. The proportion of women in the Senior Management of Grupo Catalana Occidente S.A. in 2024 is 40%.

Additionally, GCO has a Management Committee composed of key executives from the parent company and its most representative subsidiaries. This committee manages and coordinates the ordinary operations of the Group, by delegation from the Board of Directors.

Index				Sustainability Report
01. General information	03. Social information	05. Business information	07. Annex I - Taxonomy	09. Annex III - ESRS Index
02. Environmental information 04. Governance information 06. Contributing to society			08. Annex II - Law 11/2018	10. External assurance report

The Management Committee of GCO is responsible for implementing and developing decisions made by the Board of Directors related to sustainability. To this end, it has several specific management committees, including the Investment Committee where, among other topics, sustainability-related matters are discussed.

Furthermore, GCO has established a biennial Sustainability Committee, which is tasked with promoting, guiding, and overseeing the Group's actions related to sustainability and ensuring the achievement of the objectives set out in the Sustainability Master Plan.

The Sustainability unit, which is part of the Group's Financial-Risk General Management, is responsible for integrating and developing the sustainability strategy across all business areas and monitoring the actions to be taken by these businesses to achieve it.

The Group's Risk Management department oversees and coordinates the process of identifying and evaluating sustainability-related risks.

Sustainability Oversight Bodies

In the area of sustainability, the Audit Committee is responsible for overseeing non-financial risks, sustainability reporting, and the effectiveness of the control systems and related risks management

Additionally, with regard to business conduct, the Audit Committee manages any impacts reported through the Group's whistleblowing channels and informs the Board of Directors.

The GCO Compliance Verification Committee is responsible for evaluating, reporting, and advising on compliance with sustainability-related obligations.

It is worth noting that all members of the Group's governance, management, and supervisory bodies have received training on sustainability to ensure their competence regarding impacts, risks, and opportunities related to this area.

GCO currently has no employee representatives on administrative, management and supervisory bodies.

Information flow for sustainability impacts, risks and opportunities (GOV-2)

The material impacts, risks and opportunities addressed by the administrative, management and supervisory bodies are listed in the individual chapters of this report.

Index				Sustainability Report
01. General information	03. Social information	05. Business information	07. Annex I - Taxonomy	09. Annex III - ESRS Index
02. Environmental information 04. Governance information 06. Contributing to society			08. Annex II - Law 11/2018	10. External assurance report

Integration of sustainability-related performance in incentive schemes (GOV-3)

The Group's Remuneration Policy, approved by the GCO Board of Directors, is aligned with non-financial issues, linking 25% of variable compensation to the achievement of non-financial objectives.

Within these objectives, 2024 includes compliance with the GCO Sustainability Master Plan, which determines 5% of the total variable remuneration of the Executive Director, Senior Management and the Management Committee.

The Sustainability Master Plan is structured around four action pillars, dedicating one exclusively to environmental contribution, specifically focusing on the fight against climate change. The weight of this issue represents 25% of the Sustainability Master Plan.

The General Meeting of Shareholders is responsible for approving the Directors' Remuneration Policy at least every three years, as a stand-alone item on the agenda.

Statement on due diligence (GOV-4)

Due diligence is the process by which GCO commits to taking all necessary and effective measures to identify, prevent, mitigate, account for, and respond to the real or potential negative impacts that may arise from its own activities or those of its value chain.

The due diligence process implemented by the company to ensure responsible and sustainable management is detailed in the various chapters of this report. This process includes several key stages, beginning with the identification and assessment of risks, followed by the implementation of corrective and preventive measures to mitigate those risks. Additionally, continuous monitoring and periodic reviews of practices are conducted to ensure their effectiveness and compliance with current regulations. Transparency and communication with stakeholders are fundamental to this process, enabling a true representation of the company's actual practices in due diligence matters.

Below is a breakdown of the information in this report regarding how GCO addresses each stage of the sustainability due diligence process, indicating the disclosure requirements associated with them.

Key elements of due diligence	Sections of the sustainability report	Page
	ESRS 2 GOV-2	58
a) Integration of due diligence into governance, strategy, and	ESRS 2 GOV-3	59
the business model	ESRS 2 SBM-3	66, 75, 87, 93 y 99
	ESRS 2 GOV-2	58
	ESRS 2 SBM-2	62
b) Collaboration with affected stakeholders at all key stages of	ESRS 2 IRO-1	63 y 68
due diligence	ESRS 2 MDR-P	60, 69, 78, 89, 95, 101 y 108
	Thematic ESRS	66, 75, 87, 93 y 99
	ESRS 2 IRO-1	63 y 68
c) Identification and assessment of adverse impacts	ESRS 2 SBM-3	66, 75, 87, 93 y 99
d) Adoption of measures to address these adverse impacts	ESRS 2 MDR- A	66, 69, 75, 79, 87, 91, 93, 95, 99, 107, 110 y 113
	Thematic ESRS	66, 75, 87, 93 y 99
	ESRS 2 MDR-M	70, 80, 90, 96, 108, 111 y 114
e) Monitoring the effectiveness of these efforts and	ESRS 2 MDR-T	70, 80, 90, 96, 97, 108, 111 y 114
communication	Thematic ESRS	66, 75, 87, 93 y 99

Risk management and internal controls over sustainability reporting (GOV-5)

ESG risks are defined as those environmental, social, or governance factors that, if they occur, could affect the organization or have a material negative impact on the achievement of its strategic objectives. These risks can also be an important area of opportunity to the extent that the organisation increases its adaptability to the changes produced by these risks to counteract their effects.

GCO understands, prevents and seeks to mitigate ESG risks, and to best manage the opportunities to provide all its stakeholders with secure, high-quality protection against such risks.

Furthermore, as these risks can directly or indirectly affect the Group as a whole, they are integrated transversally in the risk policies.

Their management, measurement and monitoring are outlined in the Sustainability Policy and the Climate Change and Environment Policy, as well as in the rest of the Group's governance policies, according to which:

• • The impacts of these risks, to the extent that they are relevant, are analysed in the financial planning in order to adapt the strategic planning, if necessary, taking into account the risks identified.
• • It implements the metrics necessary that help to measure and manage risks and opportunities derived from climate change.
• • It performs regular reporting, at the highest level, on the identification of these risks and their impact on business.

Index				Sustainability Report
01. General information	03. Social information	05. Business information	07. Annex I - Taxonomy	09. Annex III - ESRS Index
02. Environmental information 04. Governance information 06. Contributing to society			08. Annex II - Law 11/2018	10. External assurance report

GCO also has processes and controls in place to identify the principal environmental, social and governance risks to which it is exposed and to assess their impact in the short, medium and long term. The material risks

Sustainability strategy

Business strategy and model (SBM-1)

For GCO, sustainability means voluntary commitment to integrate risks into its strategy, together with responsible management of financial matters and social and environmental aspects, promoting ethical behaviour with its stakeholders, rigorously applying the principles of good governance and contributing to the well-being of society through the creation of sustainable value.

Sustainable value is the result of not only focusing activity on obtaining good financial results, but also promoting the well-being of the stakeholders to which the Group's entities must be accountable. This value becomes sustainable when it is integrated into the business strategy both in the short term and also in the medium and long term. This commitment is embodied through the Sustainability Policy and the 2024-2026 Sustainability Master Plan, which sets out key strategic actions to address ESG challenges and promote a positive impact in the long term. Key challenges addressed by the Master Plan include integrating sustainability into governance, linking executive compensation to sustainability objectives and training Group leaders on ESG issues. It also seeks to incorporate sustainability criteria in the design of products and services and to increase investment in projects with a positive social and environmental impact. The Plan also addresses the reduction of internal inequalities, the attraction of talent, and the promotion of employee wellbeing, through measures such as equal pay and the extension of integral health programmes. Finally, in environmental terms, it seeks to decarbonise operations and improve energy efficiency.

Furthermore, information about employees by geographic areas and customers attended is included in the "Social Information" chapter (ESRS S), and information about products and services offered is in the "Sustainable Business" chapter of this Sustainability Report.

Sustainability policy (MDR-P)

The Sustainability Policy outlines the framework for GCO and its constituent entities to foster and enhance sustainable behaviour. It includes the general working principles in terms of sustainability, and the specific sustainability targets pursued by the Group.

identified as well as their current impact and the management measures taken to mitigate them are developed in each of the thematic sections of this report.

This statement promotes high standards in the integration of environmental, social, and governance aspects, with which the Group commits to following best practices, rigorously complying with regulations, ensuring the full involvement of its leaders, and establishing sustainability as a guiding principle for all policies and operations. It also focuses on generating long-term value for all stakeholders, promoting sustainability, and contributing to the Sustainable Development Goals (SDGs).

External sustainability rating

GCO's exposure to and management of ESG (Environmental, Social and Governance) risk has been assessed by the rating agency Sustainalytics.

In May 2024, the agency reviewed the Group's ESG rating, awarding it 16.6 points. As a result, the agency considers the organisation to have a low risk of experiencing material financial impacts related to ESG factors and ranks GCO among the top 40 companies with the best ESG ratings in the insurance sector (300 companies).

GCO is also part of the IBEX GENDER EQUALITY Index, the first Spanish gender equality index that measures the presence of women in executive positions in companies based on information provided to the CNMV.

Sustainability partnerships and commitments

As part of its sustainability strategy, GCO is aligned with key national and international ESG alliances and commitments.

Index				Sustainability Report
01. General information	03. Social information	05. Business information	07. Annex I - Taxonomy	09. Annex III - ESRS Index
02. Environmental information 04. Governance information 06. Contributing to society			08. Annex II - Law 11/2018	10. External assurance report

2024-2026 Sustainability Master Plan

The 2024-2026 Sustainability Master Plan is structured into 4 cornerstones on which 10 strategic lines have been defined in which the Group wishes to create value. Based on these, 22 goals to be achieved and 44 actions necessary to achieve them have been set. Below, we highlight the main advances in 2024:

Good governance	• A 5% of the variable remuneration of GCO's executive directors, senior management, and management committee has been linked to the achievement of the Sustainability Master Plan. • GCO's Board of Directors has been evaluated by an independent third party. • An independent Human Rights policy has been developed. • GCO suppliers have been assessed on ESG criteria based on the sector and country risk in which they operate.
Sustainable business	• Products have been better adapted to the technical selection criteria of the EU Taxonomy Regulation. • The digitisation of professional claims management documents handled by Prepersa has been increased. • A new sustainable repair technique has been implemented.
Social commitment	• The Group's diversity and equality commitments have been documented in a separate policy. • The teleworking model in Occident has been expanded to cover 40% of working hours for technical and office staff. • The Group's headquarters have been relocated to a new, more sustainable building featuring more functional and modern workspaces, areas for physical activity, a healthy dining hall, among others. • GCO has increased the budget for the Occident Foundation's social action projects to 3.9 million.
Environmental Liability	• The categories of Scope 3 emissions reported have been expanded, now including employee transportation and emissions from financial investments. • 100% of electricity consumption in Spain comes from clean energy. • Energy consumption has been reduced by installing solar panels and using energy-efficient lighting.

As part of the strategic line of Reporting and Transparency, in 2024, actions have been carried out to publicise the Sustainability Master Plan 2024-2026 both internally and externally, and update the sustainability content on GCO's website.

Value chain (SBM-1)

The GCO value chain includes all actors involved in some way with the Group's productive activity, both insurance and funeral, across all the geographies where it operates.

In addition to the value chain, there are other key stakeholders for GCO, such as foundations, shareholders, investors, regulatory and supervisory bodies, and other strategic partners.

Index				Sustainability Report
01. General information	03. Social information	05. Business information	07. Annex I - Taxonomy	09. Annex III - ESRS Index
02. Environmental information 04. Governance information 06. Contributing to society			08. Annex II - Law 11/2018	10. External assurance report

Interests and opinions of stakeholders (SBM-2)

GCO identifies six stakeholder groups based on the impact its operations have on them and the relevance of each one to the Group. Within these stakeholder groups, there are actors from the value chain and other users who consume sustainability information.

The Group makes a commitment to each of them, which involves ongoing and transparent dialogue to understand them and integrate them into the Group's activities. To do this, there are various communication channels through which a smooth, close and transparent relationship is maintained with them. These channels also help identify their interests and opinions, allowing GCO to respond to their needs and expectations.

Engagement with stakeholders occurs through multiple channels such as the Group's corporate website, the websites of its subsidiaries, social media, the whistleblowing channel, and the media, among others.

Similarly, through the participation of GCO members in various presentations, round tables, forums and conferences, outreach activities are conducted in the area of sustainability, with the goal of promoting awareness among stakeholders.

Channels for communication, participation and dialogue

Employees

The Group has channels for communication and dialogue with its employees, both directly and also through their union representatives on the corresponding negotiating boards when dealing with topics of interest and reaching agreements on them. The main channels for communicating with them are the intranet, notice boards and suggestion boxes, newsletters, employee satisfaction surveys, in-person meetings, events and the whistleblowing channel.

Customers

The Group maintains ongoing dialogue with this stakeholder group through its extensive commercial network, technical assistance services, customer care and defence services and its own network of branches. In addition, there are other communication channels such as the corporate website, the whistleblowing channel, the e-Customer service, the social networks, the customer satisfaction surveys and the corporate magazines.

Distributors/Intermediaries

The Group is in constant communication with the insurance agents and brokers through its internal portal Gestiona. It also has other channels of communication such as commercial and training sessions, the whistleblowing channel, the corporate app and social networks.

Shareholders and Investors

The group is in constant communication and dialogue with this stakeholder group. The Investor Relations, Rating, and Sustainability department leads and directs roadshows , responding to their information requests. There are also other channels of communication such as the General Meeting of Shareholders, the corporate website, the analysts and investors area, the shareholder service area and the whistleblowing channel.

Associates/Suppliers

The Group has a good relationship with this stakeholder group during the entire management process, from the taking out of contracts to the provision of the service. For this reason, the Group makes available to associates and suppliers various communication channels such as the Intranet, satisfaction surveys and the whistleblowing channel.

This stakeholder group includes the local communities, unions, NGOs, academic sector, civil society and the public in general. Communication is carried out through the Group's website, its entities' websites, various social media profiles, and the whistleblowing channel GCO makes available to anyone.

The needs and expectations identified through the above channels are reported to the governing, supervisory, and management bodies based on their nature, and serve as the foundation for shaping the Group's strategy.

Management of impacts, risks and opportunities

In 2023, GCO updated its materiality analysis with the aim of identifying relevant issues for the Group and its stakeholders. This analysis has been reviewed during the current fiscal year to reassess the impact of risks and opportunities.

This materiality analysis was conducted in accordance with the dual approach promoted by the Corporate Sustainability Reporting Directive (CSRD), which covers both the Group's impacts on society and the environment (impact materiality) and the potential financial implications of sustainability (financial materiality). To carry out the dual materiality analysis, the Group has undertaken the following process:

Phases of the double materiality process

1. Identification of ESG sources

An analysis of internal and external context information has been undertaken to identify expectations and requirements regarding sustainability on the part of GCO's main stakeholders. In that regard, the analysis has taken into account the materiality analysis of other companies in the sector, sustainability regulations (CSRD, CS3D, EU Taxonomy and SFDR), analysts and ESG rating agencies (MSCI, Dow Jones, FTSE, Sustainalytics) and standards, voluntary initiatives and best practices (UN PRI, PSI, SASB). Drawing from this analysis, 20 issues of concern to GCO's stakeholders were preliminarily identified.

2. Identification and evaluation of impacts, risks, and opportunities related to sustainability issues (IRO-1)

GCO has developed the following internal process to identify and assess actual and potential impacts, risks, and opportunities, extending to both the Group's direct activities and operations as well as its value chain.

2.1 Impact materiality: for each of the preliminary issues, both positive and negative impacts generated or potentially generated by the organisation on people and the environment were identified. Once identified, the impacts were assessed in terms of severity (scale, scope, and for negative impacts, remediability) and probability (likelihood of occurrence and time horizon).

To assess the impacts, meetings were held with sector experts, and valuation questionnaires and surveys were sent to various stakeholder groups.

2.2 Financial materiality: for each of the preliminary issues, it was determined whether there were circumstances that could lead to risks or opportunities affecting the company's value. These were understood as impacts on financial statements, asset and liability valuations, the company's reputation, and business development. Once the risks and opportunities for each issue were identified, an internal assessment was carried out to determine their materiality. To carry out this process, each risk and opportunity was evaluated individually in terms of probability (ranging from Very High 80%-100% to Very Low 0%-20%) and severity (ranging from Very High >€250 million to Very Low <€500,000). The final value of the risk is determined by multiplying the probability value by the severity value, thus identifying material risks as those with a High or Extreme value.

To carry out this process, the risks and opportunities associated with each identified issue were prioritised according to the magnitude of their impact and the probability of occurrence.

3. Analysis and determination of material issues.

Once both impact and financial materiality were assessed, the material issues identified were prioritised.

Issues such as financial inclusion, circular economy, pollution, biodiversity and ecosystems, and water and marine resources were evaluated but did not prove to be material.

To calculate the financial effects of these risks and opportunities in 2024, each risk and opportunity has been assessed individually, in terms of probability (from Very High 80%-100% to Very Low 0%-20%) and severity (from Very High >250 million euros to Very Low <500 thousand euros) taking into account the following time horizons:

• Short term: less than 5 years
• Medium term: 5 to 30 years
• Long term: more than 30 years

4. Validation of the materiality results

The Board of Directors reviewed and validated the materiality analysis, confirming that the conclusions adequately reflected the Group's situation and priorities in terms of sustainability. Additionally, the impacts and risks identified in the double materiality process serve as the foundation for the development of the Group's ESG risk map.

The full double materiality analysis exercise will be conducted every 3 years, coinciding with the update of GCO's Sustainability Master Plan. However, a review of the risks and opportunities assessed in the financial materiality will be undertaken on a yearly basis in order to identify possible changes that have occurred in the probability of their occurrence.

Index				Sustainability Report
01. General information	03. Social information	05. Business information	07. Annex I - Taxonomy	09. Annex III - ESRS Index
02. Environmental information 04. Governance information 06. Contributing to society			08. Annex II - Law 11/2018	10. External assurance report

Once the material issues of GCO were identified, these issues were mapped with the ESRS to determine the sustainability information that must be contained in this report.

Material issues of GCO

ESRS	ESRS topic	ESRS Sub-Topic	Related GCO material issue
E1	Climate Change	Mitigating climate change
		Adaptation to climate change	Climate Change
		Energy
S1	Own staff	Work conditions	Working conditions Health and well-being
		Equal treatment and opportunity	Diversity, equality and inclusion Talent management, professional development and training
		Other labour rights	Data privacy and Cybersecurity*
S2	Workers in the value chain	Work conditions Equal treatment and opportunity Other labour rights	Managing the relationship with suppliers and partners Data privacy and Cybersecurity
S4	End Customers and consumers	Incidents related to information for customers	Data privacy and Cybersecurity* Service quality and customer satisfaction
	Business conduct	Corporate culture	Business ethics and conduct
		Protection of whistleblowers	Responsible governance
G1		Corruption and bribery	Tax liability
		Managing relations with suppliers, including payment practices	Managing the relationship with suppliers and partners*
	Entity-specific information		Contributing to society
			Sustainable investment
			Responsible management of products and services

*Material issue of GCO related to more than one thematic ESRS

The non-material ESRS issues for GCO are: E2 Pollution, E3 Water and Marine Resources, E4 Biodiversity and ecosystems, E5 Circular Economy and S3 Affected groups.

Likewise, the non-material ESRS sub-topics for GCO include:

• S4 Consumers and end-users: Personal safety of end customers or consumers and social inclusion of customers (financial inclusion).
• G1 Business conduct: Animal welfare and Political engagement and lobbying activities.

The full disclosure of sustainability issues, the subtopics considered, and the disclosure requirements covered by GCO, as outlined in the obligation contained in ESRS 2 IRO-2, are detailed in Annex II of the Content Index according to the ESRS.

02. Environmental information (ESRS E)

Climate change (E1)

Climate strategy

Transition plan for climate change mitigation (E1-1)

GCO supports the Paris Agreement and is working to play an active part in the response to climate change through the different roles the group can adopt, as an insurer, investor, employer and promoter of social initiatives. To do this, it focuses its strategy on gradually reducing its greenhouse gas emissions and it aims to progressively align its activity with the European target of zero net emissions by 2050, thus contributing to the transition towards a more sustainable future.

In line with the objective of reducing CO2 emissions, set in its Sustainability Master Plan 2024-2026, GCO is currently working to develop a transition plan by defining its decarbonisation path and emissions reduction targets.

To achieve this, the group monitors its emissions, both those that it generates directly through its activity and those produced indirectly, and it is working to reduce its carbon footprint. It also supports a responsible energy culture by promoting the use of clean energy and including environmental criteria in the construction and purchase of buildings.

In terms of the professionals who collaborate with the Group, it promotes innovation in low carbon solutions and encourages efficient practices such as video inspection for damage caused by atmospheric phenomena, thus reducing the emissions associated with travel.

Similarly, convinced that continuous dialogue is essential to building a sustainable future, the Group supports its customers in their transition to a lowcarbon economy. This is achieved by raising awareness among customers of the importance of reducing emissions and adopting sustainable practices. The Group is also working to achieve a more accurate understanding of its customers' sustainability needs to provide appropriate support for their transition and to supply the information they need.

Risks, opportunities and impacts of climate change and its interaction with the business strategy and model (SBM-3 and MDR-A)

Within the GCO value chain, climate change impacts can mainly affect own operations and the downstream phase.

The negative incidents of climate change and their associated risks for the Group are outlined below.

Negative impacts	Associated risk	Current financial impact	Risk management
Increase in the frequency and severity of customer claims due to climate related events.	Physical risks stemming from the rise in extreme weather events (acute) or long-term impacts of changes in climate characteristics (chronic), leading to higher claim rates.	No significant impact has been identified during the period, nor any extraordinary effects that would require adjustments in the next period.	Measures such as tariff adjustments to absorb increases in claim rates, strengthening diversified investment portfolios, developing sustainable projects in properties aligned with ESG criteria, transferring risks through reinsurance contracts, and diversifying to reduce exposure to vulnerable regions are in place.
Lower returns on financial products for customers due to a decline in the value of underlying assets associated with sectors with high climate exposure.	Market transitional risk from the loss of value in shares of sectors with significant exposure to the climate transition	No significant impact has been identified during the period, nor any extraordinary effects that would require adjustments in the next period.	The application of ESG criteria, as outlined in the Sustainable Investment Policy and overseen by specialised committees, is implemented through controlled sector diversification, continuous issuer exposure evaluations, credit quality analyses, and restrictions on exposure to issuers not aligned with climate objectives.
There is a lack of sustainable products to meet emerging customer needs.	Market risks due to changes in customer preferences	No significant impact has been identified during the period, nor any extraordinary effects that would require adjustments in the next period.	Sustainable investment criteria are applied to savings products, with portfolio cancellations analysed to tailor offerings to customer needs, and new services and guarantees developed to ensure competitiveness and relevance.

Increase in environmental emissions due to the absence of a transition plan	Transitional risk of regulatory non-compliance caused by slow adaptation to new environmental and climate regulatory requirements.	No significant impact has been identified during the period, nor any extraordinary effects that would require adjustments in the next period.	Internal regulations are enforced through control tools and contingency plans, reinforced by internal and external audits to ensure regulatory compliance. Additionally, a penal map is used to prevent environmental crimes, and investment portfolios are managed using exposure, diversification, and rating criteria, supported by ESG tools to ensure the quality of analyses.
Increase in environmental emissions linked to the use of unsustainable technologies	Transitional technological risk associated with failing to implement technological developments that support the transition to a low-carbon economy.	No significant impact has been identified during the period, nor any extraordinary effects that would require adjustments in the next period.	Continuous monitoring of energy consumption and the operational efficiency of systems. Measures are implemented that include updating systems with efficient servers, adopting recyclable hardware, and using cloud solutions to reduce the carbon footprint.

02. Environmental information 04. Governance information 06. Contributing to society 08. Annex II - Law 11/2018 10. External assurance report

Analysis of scenarios

To determine and assess the physical and transition risks of climate change, GCO has conducted an impact assessment of how climate risks might affect its operations. To do so, the Group's risk profile was used as a starting point, estimating the impact that two opposing climate scenarios would have on it: one with a global temperature increase of no more than 2°C, and the other with an increase of more than 2°C.

The scope evaluated in these scenarios includes Life and Funeral, Multi-risk, Other Auto Insurance, and Credit Insurance.

To simulate both scenarios, an analysis was performed on the scenarios proposed by the Intergovernmental Panel on Climate Change (IPCC) in its report of August 2021, where potential impacts were defined, taking into account environmental and socio-economic factors intrinsically linked to climate change.

Based on this information, the scenarios analysed are:

• Scenario with an increase in the planet's global temperature of no more than 2°C: The SSP1-RCP2.6 scenario has been selected aligned with the upper boundary of achieving the Paris Agreement targets and the updated nationally determined contributions (NDCs) at COP26. This scenario would be mainly affected by transition risks. The transition events impacted in this report include changes in customer behavior and market signal uncertainty. Regarding physical risks, the hazards included are variations in types and patterns of precipitation, heavy rainfall, coastal flooding, heatwaves, and wildfires.
• Scenario with an increase in the planet's global temperature exceeding 2°C: Information from the SSP5-RCP8.5 scenario has been used, which represents a no-climate-policy scenario that enables the most unfavourable climate conditions to be examined. This scenario would be affected

exclusively by physical hazards. The hazards included in this scenario are variations in types and patterns of precipitation, heavy rainfall, coastal flooding, heatwaves, and wildfires.

In this context, a map of the financial assets subject to transition risks has been established, along with the level of exposure of each of them (identified based on the Climate Policy Relevant Sectors (CPRS) defined in the EIOPA application guide). Geographical areas exposed to physical risks have also been identified based on the insured sums for catastrophic risks. Finally, mortality stress has been identified in the biometric tables stipulated by the Solvency II regulations, used in the calculation of technical provisions for the Life-Risk (death and funeral) business portfolios.

This creates a total exposure map for the Group that enables active, focused, and more efficient management of the risks and opportunities associated with climate change affecting both the insured portfolios and the financial asset portfolios.

The results of the analysis of these scenarios projected over a 5-year time horizon reveal the following possible impacts on the business:

• First, a slight increased in claims in Occident.
• Secondly, a possible negative impact on the equity valuation and on the fixed income valuation in the SSP1-RCP2.6 scenario.

In addition to the previously mentioned impacts, GCO, within the scope of climate risks, recognises its exposure to other risks, beyond those listed above, which may affect it in various areas and lines of business, such as the Health branch, Multi-risk and Auto branches affected by transition risks, and real estate assets.

Index				Sustainability Report
01. General information	03. Social information	05. Business information	07. Annex I - Taxonomy	09. Annex III - ESRS Index
02. Environmental information 04. Governance information 06. Contributing to society				08. Annex II - Law 11/2018 10. External assurance report

The positive impacts of climate change and the associated opportunities for the Group are outlined below.

Positive impacts	Associated opportunity	Current financial impact	Opportunity management
Offer sustainable products to meet the needs of customers with sustainability preferences	Products and services: Development of products and services, or transformation of existing ones, to adapt to the climate. Markets: Access to new markets and financial assets (e.g., green bonds)	No significant impact has been identified during the period, nor any extraordinary effects that would require adjustments in the next period.	Adaptation of insurance products with an investment component to Article 8 of the SFDR. Creation of insurance products and responsible services such as sustainable mobility insurance and ecofunerals (see section "Responsible management of products and services" in this report)
Environmental protection resulting from a reduction in the use of natural energy resources	Efficiency in the use of resources: as a result of more sustainable energy management (implementation of remote working, LED lighting, efficient climate control systems, hybrid and/or electric company vehicles, repair vs. replacement, etc.) and an increase in the value of owned properties due to rehabilitation and sustainable certification.	No significant impact has been identified during the period, nor any extraordinary effects that would require adjustments in the next period.	Expansion of remote working days, certification of the Group's flagship buildings under LEED or BREEAM standards, and promotion of repair over replacement in Prepersa's claims management.

Management of climate impacts, risks and opportunities

Processes to determine and assess material impacts, risks, and opportunities related to climate (IRO-1)

As part of its general risk management and control model, the Group develops regular risk identification and assessment processes, including climate change risk. This allows the Group to identify material risks that may have a negative impact on its risk profile through the scenarios mentioned in the previous section and to manage them actively and proactively.

These processes are updated at least once a year to identify the Group's main vulnerabilities and opportunities with a forward-looking perspective. They cover all types of risks the Group faces in its daily operations, including climate change risks, both in its own operations and in the value chain (upstream and downstream). The Group's risk appetite level, approved by the Board of Directors, determines the risk levels the Group is willing to assume to reach its goals.

The impacts of these risks, to the extent that they are relevant, are analysed in the financial planning in order to adapt the strategic planning, if necessary, taking into account the risks identified.

Additionally, the necessary metrics are implemented to help measure and manage the risks and opportunities arising from climate change. More information on these metrics is included in the Climate Change Metrics and Targets section of this chapter.

Regular reporting is carried out to the highest level on the quantification of the main risks to which the Group is exposed and the capital resources available to deal with them, as well as information regarding the fulfilment of the limits established in the risk appetite.

In the assessment carried out, no significant financial impacts arising from physical or transitional climate risks were observed, and it is considered that the risk management model is robust and resilient to climate change.

Policies and plans related to climate change (E1-2 and MDR-P)

GCO has a set of policies, approved by the GCO Board of Directors, that incorporate aspects related to climate change.

• Sustainability Policy: this includes the general principles of action for the Group in terms of sustainability, including those related to climate change, as well as the goals to be achieved.
• Sustainability Master Plan: the main tool through which GCO implements its sustainability strategy. It is structured around four pillars, one of which is dedicated exclusively to the development of climate change management actions.
• Climate Change and Environment Policy: this establishes the principles, criteria, and commitments of the Group to integrate environmental protection and the fight against climate change into its strategy and business model.
• Sustainable Investment Strategy: this aims to include non-financial factors (environmental, social, and governance) in investment decisionmaking. Climate change metrics are included under environmental factors. The sustainable investment objectives to be achieved each year are set out in the Annual Sustainable Investment Plan.
• Sustainable Real Estate Investment Policy: this sets out the general principles and strategy for real estate investment management within the Group.
• Risk and Solvency Self-Assessment Policy (ORSA): this sets out the specific guidelines to be followed in activities that make up the prospective evaluation process of material risks to which GCO is exposed, including climate change risk.
• Remuneration Policy: this incorporates sustainability and ESG risks into variable compensation schemes.

Actions and resources related to climate change (E1-3 and MDR-A)

The current activities of GCO do not have a significant impact on the environment. Nevertheless, the Group acknowledges the effects of its operations on the environment, mainly due to raw material consumption and energy use.

Given the type of activity carried out, water consumption and waste management data are not deemed relevant, but efficient use of waste is encouraged.

In line with its Climate Change and Environmental Policy, the Group is committed to a process of continuous improvement in environmental performance and the fight against climate change, as well as compliance with all environmental regulations.

To achieve this, the Group has put in place an environmental management system that follows the guidelines of the ISO 14001:2015 standard and covers all real estate asset management processes.

In GCO's main buildings, various mitigation and adaptation measures for climate change are being implemented, including the following:

• Installation of photovoltaic plants to increase selfconsumption of energy. In 2024, photovoltaic plants have been installed in 4 buildings owned by the Group, which are added to the 16 that already had installations of this type. In addition, 12 facilities of Mémora have photovoltaic plants.
• Promoting sustainable mobility by installing, in 2024, 20 chargers for electric vehicles, in addition to the 123 chargers already installed. Parking spaces for scooters and bicycles have also been installed.
• The Group is committed to contracting renewable electricity with a Guarantee of Origin for all the buildings it owns in Spain.
• GCO has created a specific communication channel with tenants of the buildings leased by the Group, to better manage and address any inquiries they may have.
• Energy consumption is monitored regularly to detect deviations and optimize efficiency through the implementation of BMS (Business Management System) in several of the Group's properties. Currently, the Group has implemented 12 BMS.
• The waste from construction and renovation is also tracked.
• Environmental clauses are included in tenders and maintenance contracts.
• GCO has obtained the Biosphere Certification for sustainable tourism at Torre Bellesguard, an iconic building owned by the Group.
• In Occident commercial offices, PVC-free vinyls are used, with printing carried out using aqueous dispersion polymerization, a method that is free of ozone emissions and hazardous volatile pollutants.

The Group also took part in external environmental initiatives such as Earth Hour and European Sustainable Mobility Week, and contributed to World Cleanup Day, in which employees from various countries volunteered to take part in clean-up campaigns on land and at sea.

In Mémora, the environmental management system based on ISO 14001:2015 is certified by AENOR and Bureau Veritas. Furthermore, the funeral companies have the following quality and environmental certifications:

• ISO 15017:2020 (Quality in Funeral Services)
• ISO 9001:2015 (Quality Management Systems)

Moreover, in the management of funeral services, several environmental protection actions are undertaken, including the following:

• • Use of ecological and biodegradable funeral products.
• • Elimination of any contaminating materials before cremation and their subsequent recycling.
• • Management of crematorium ovens during cremations and servicing to optimise energy consumption.

Index	Sustainability Report
01. General information	03. Social information	05. Business information	07. Annex I - Taxonomy	09. Annex III - ESRS Index
02. Environmental information 04. Governance information 06. Contributing to society				08. Annex II - Law 11/2018 10. External assurance report

• • Recycling of metal waste generated in cremations.
• • Replacement of synthetic solvent varnishes with water-based varnishes in most of the coffins produced, to reduce harmful emissions in cremation services.
• • Transport of the deceased in hybrid and electric vehicles.

Finally, it is worth highlighting the Group's response to the DANA (Isolated depression at high levels) in Valencia, proactively, activating a special mechanism to speed up compensation for those affected, managing more than 42,000 claims with the support of close to 300 loss adjusters. The Group also extended deadlines and offered payment extensions, provided free funeral services, and collaborated in raising funds for those affected.

Natural Capital

The Group strongly believes that organisations have a responsibility to champion the protection of natural assets and biodiversity by advocating greener practices and in so doing, help communities manage the impacts of climate change. It recognises the crucial role of nature-based solutions in addressing the global climate crisis, raising the resilience of ecosystems and curtailing associated risks, while contributing to mitigation by strengthening ecosystem services.

Conservation of natural capital

Given the unique nature of the business of Mémora, which due to its activity has a different impact on natural capital compared to the insurance activity, a range of actions are undertaken to preserve biodiversity, including: reforestation, use of PEFCcertified wood, use of biodegradable products (shrouds, urns, etc.), eco-friendly wreaths of flowers, reminders on FSC or recyclable paper, replacement of the fleet with hybrid vehicles and monitoring of emissions and inspections at the facilities.

Furthermore, the facilities and the activity do not have an impact on biodiversity conservation, given that the centres are located outside protected areas and the environmental licences are in place to carry out the activity.

At Mémora's coffin factory, as a preservation measure, we choose to buy pieces of wood of different sizes to build the different models of coffins, adjusted as far as possible to the production to avoid wasting wood. The sawdust produced in the production process is used for combustion in the biomass boiler that produces part of the energy used.

Recovery of natural capital

GCO is one of the companies comprising Nactiva Capital Natural S.L., a collective platform for investment in natural capital. Natural capital is the quest for productive investment opportunities in environmental areas to drive growth while protecting the planet and combating climate change.

Nactiva is the first initiative of its kind in the European Union and its goal is to drive projects in the Mediterranean area, taking advantage of the opportunities offered by nature and integrating and connecting various social and economic agents with a view to maximising the scope and capacity of the projects to protect and regenerate natural capital.

In turn, Nactiva has taken on an awareness-raising role by participating in roundtables and podcasts, and through social media and e-newspaper outreach.

Climate metrics and targets (MDR-M and MDR-T)

Targets related to climate change (E1-4)

GCO's targets related to the management of climate change impacts, risks, and opportunities are defined in its Sustainability Master Plan, which has a specific pillar dedicated to climate. These goals include increasing the consumption of clean energy, enhancing energy efficiency in facilities, and reducing paper consumption. Additionally, the Group is committed to not underwriting activities related to fossil fuels and has set emission reduction targets for its investment portfolio, underwriting, and operations.

To ensure compliance with the above targets, a variable compensation system has been implemented, linked to the fulfilment of the Sustainability Master Plan. The Financial-Risk General Management, responsible for overseeing the Sustainability Master Plan, directly reports to the Sustainability Committee on the progress made towards meeting the plan's targets. Among these targets, GCO is committed to reducing its carbon footprint, which will involve the progressive establishment of emission reduction targets.

In terms of environmental management for its owned buildings, GCO has set specific targets to be met:

• • Improve energy efficiency through the implementation of 14 BMS (Building Management System) to control energy and other variables (target year 2025).
• • Foster sustainable mobility by installing chargers for electric vehicles.
• • Enhance the comfort, sustainability, and image of its properties by obtaining certifications for its buildings.

As part of its investments, the Group's Annual Sustainable Investment Plan includes commitments related to climate change, such as not investing in companies where more than 10% of their revenue comes from certain fossil fuel extraction sectors.

Paper consumption

In an effort to achieve efficient document management and reduce paper consumption, the implementation of electronic documentation has been promoted in business processes, including those involving the customer. Remote working has accelerated this process.

Consumption of materials	2024
Paper consumption (kg)*	238,334
% recycled paper	18.7 %

Index				Sustainability Report
01. General information	03. Social information	05. Business information	07. Annex I - Taxonomy	09. Annex III - ESRS Index
02. Environmental information 04. Governance information 06. Contributing to society				08. Annex II - Law 11/2018 10. External assurance report

Energy consumption (E1-5)

The maintenance and refurbishment of the Group's buildings are guided by energy efficiency principles in an effort to reduce consumption and CO2 emissions. Currently, a total of 12 buildings owned by GCO have sustainable building certificates (LEED or BREEAM) and another 9 buildings are currently undergoing the certification process. The new works and renovations include motion detectors, automatic light intensity control and replacement of air conditioning facilities with other more energy-efficient units.

For its part, Atradius promotes the use of office buildings with sustainable certifications such as ENERGY Star, BREEAM, and LEED across the countries where it operates. For instance, the DC Tower in Austria, where Atradius offices are located, holds both LEED Platinum and BREEAM certifications. In addition, the Atradius building in Barcelona (Spain) is Leed Gold certified and the buildings in Namur (Belgium), Amsterdam and Poland are BREEAM certified. The Atradius office building in Indonesia and the Atradius office in California (USA) are Leed Platinum certified.

Furthermore, Atradius collaborates with building owners to reduce its carbon footprint and support the Group's sustainability goals. It has developed Corporate Real Estate Standards (CRES) to achieve ESG objectives through energy-saving measures and new office location contracting procedures.

The Group's energy consumption (in MWh) for the fiscal year is detailed below 2024, calculated on the basis of invoices issued by energy suppliers:

Energy consumption	2024
TOTAL RENEWABLE ENERGY CONSUMPTION	39,007
-Purchased	37,015
-Self-generated	1,992
-Biomass fuel	0
TOTAL NON-RENEWABLE FOSSIL ENERGY CONSUMPTION	83,274
-Nuclear energy consumption	1,102
Total energy consumption (Renewable + Fossil)	122,281
% fossil energy consumption over total	68.1 %
% nuclear energy consumption over total	0.9 %
% renewable consumption over total	31.9 %

*The breakdown of fossil consumption is not shown as GCO activity is not considered a high climate impact sector.

GHG emissions (E1-6)

GCO calculates scope 1, 2 and 3 emissions using the criteria defined in the Greenhouse Gas Protocol (GHG Protocol). The conversion factors used for the calculation are as indicated by:

• International Energy Agency (IEA) of 2023 for electricity.
• Department for Environment, Food and Rural Affairs (DEFRA) of 2024 for all other consumption.

These emissions calculated from the reported energy consumption.

Scope 1 includes own emissions from the consumption of natural gas, refrigerant gases, fuel consumption (petrol, diesel A, B and C) and own vehicle fleet. Scope 2 includes emissions generated by electricity consumed and purchased.

Scope 1 and 2 emissions have been calculated on the basis of consumption from energy supplier invoices, as well as invoices for recharging refrigerant gases and fuels, and information collected from the photovoltaic plants installed in the Group's buildings. In the case of electricity consumption, in some countries the consumption in November and December has been estimated on the basis of the consumption in the same months of the previous year.

Scope 3 includes indirect emissions resulting from categories such as purchased goods and services (paper and wood for coffins), activities related to fuel and electricity (not included in Scope 1 and 2), business travel (train and aeroplane), employee transportation, and financial investments. The remaining Scope 3 categories are not included because they are not material or are not calculated due to GCO's own activity.

For goods and services category, the required information is gathered from primary data provided directly by the suppliers of the respective goods, to which emission factors from DEFRA are applied.

As for business travel, the calculations include plane and train journeys linked to the organisation's activity. The distance travelled is determined using data provided directly by the external suppliers who manage these trips, who furnish the Group with detailed itinerary information for each transport. To calculate emissions, the emission factors from DEFRA and the Catalan Office for Climate Change have been used.

To calculate the employee transport category, the responses from the 2024 mobility survey, conducted among all Group employees, have been extrapolated to represent 100% of the workforce. This survey obtains employees' daily commutes and the distances travelled to reach the workplace. Additionally, emissions from teleworking have been considered, applying the corresponding DEFRA emission factor.

Index				Sustainability Report
01. General information	03. Social information	05. Business information	07. Annex I - Taxonomy	09. Annex III - ESRS Index
02. Environmental information 04. Governance information 06. Contributing to society				08. Annex II - Law 11/2018 10. External assurance report

Emissions*	2024
Scope 1 (Tn CO2)	19,053.6
Scope 2 (Tn CO2)
Market based (Tn CO2)	1,139.7
Location based (Tn CO2)	7,254.2
Total Scope 1 and 2	20,193.3
Scope 3 (Tn CO2)	4,793,803.1
-Goods and services purchased (paper and coffins)	544.7
-Fuel and electricity activities (not included in Scopes 1 and 2)	4,532.3
-Business travel (rail, air)	3,875.2
-Employee transport	7,530.9
-Investments	4,777,320.1
Total Scope 1, 2 and 3 (market based)	4,813,996.4
Total Scope 1, 2 and 3 (location based)	4,820,110.8
Intensity of emissions by net income* (Tn CO2/€M) - market based	843.0
Intensity of emissions by net income* (Tn CO2/€M) - location based	844.1

*Net revenue is understood as the gross written premiums from the insurance activity and the income from the funeral activity, expressed in millions of euros. The net revenue figure (€5,710m) used for the intensity calculation corresponds to the sum of the figures included for each business (Occident, Atradius and Mémora) in GCO's Consolidated Management Report, based on IFRS 4. Reconciliation with the figures included in the financial statements (based on IFRS 17) is provided in Note 18 Segment Reporting in GCO's Annual Report 2024 and details of Mémora's 'Other income' are provided in Note 19 Profit before tax under IFRS 17 and IFRS 9..

	2024
Asset class	Emissions (Tn CO2)	Emissions intensity (Tn CO2/€M)
Listed Equity and Corporate Debt	277,943.4	39.1
Sovereign debt	481,233.4	151.3
Investment Funds	47,327.5	34.7
Other assets	22,392.9	38.4
Total Scope 1 and 2	828,897.2	67.7
Listed Equity and Corporate Debt	2,893,994.5	429.6
Sovereign debt	194,003.5	61.0
Investment Funds	455,373.0	337.6
Other assets	405,052.0	414.2
Total Scope 3	3,948,422.9	322.5
Total Scopes 1, 2 and 3	4,777,320.1	390.2

To calculate the carbon footprint of its investments, the Group followed the methodology developed by the Partnership for Carbon Accounting Financials (PCAF).

An analysis of the carbon footprint was conducted across the 100% asset portfolio, categorizing assets into listed equities and corporate debt, sovereign debt, investment funds, and other assets not included in the above categories.

Hereinafter, a detailed breakdown of the carbon footprint by asset class is provided, separating Scope 1 and 2 from Scope 3, which includes emissions from the sectors defined in the PCAF methodology. It also includes the emissions intensity (Tn CO2/asset portfolio value expressed in millions of euros):

Offsetting emissions

Mémora, aware of the importance of its activity on the environment, is undertaking an emissions offsetting project in collaboration with Tree-Nation, a leading international reforestation NGO. Through this project, called In Arboriam, the company undertakes to plant a tree for each service performed, always with the consent of the families, in order to create a large forest paying tribute to the deceased in the name of their loved ones and contributing to their memory, while at the same time having a positive impact on the environment on a global scale.

Detailed information on the initiative can be found on the Mémora corporate website: www.memora.es/inarboriam

Thanks to this project, in 2024 more than 27,913 trees were planted, which helped to absorb over 6,125.4 tonnes of CO2. As a result, the Group's emissions after the offsetting would be as follows:

Emissions	2024
Total Scope 1 and 2	20,193.3
Offsets (Tn CO2)	6,125.4
Total Scope 1 and 2 after offsetting	14,067.9
Scope 3 (Tn CO2)	4,793,803.1
Total Scopes 1, 2 and 3	4,807,871.0

Index				Sustainability Report
01. General information	03. Social information	05. Business information	07. Annex I - Taxonomy	09. Annex III - ESRS Index
02. Environmental information 04. Governance information 06. Contributing to society				08. Annex II - Law 11/2018 10. External assurance report

Taxonomy

Asset eligibility and alignment according to the EU Taxonomy

As part of the EU Sustainable Finance Plan, the European Commission has brought in the European Taxonomy Regulation 2020/852, which determines which economic activities are environmentally sustainable.

GCO, as a financial sector entity and insurance group, is an entity subject to the obligations of this Regulation and must report to the market eligibility and alignment indicators relating to its non-life underwriting activities and on-balance sheet assets.

Below are the main alignment indicators of GCO's assets as per the taxonomy as at 31 de diciembre de 2024.

• Investments aligned in terms of business volume in financial and non-financial companies, as well as real estate, relative to covered assets: 3.27%
• Investments aligned in terms of CapEx in financial and non-financial companies, as well as real estate, relative to covered assets: 4.55%

For further information on the calculation methodology and breakdown of data under Annexes IX, X, XI and XII of Commission Delegated Regulation (EU) 2021/2178 of 6 July 2021, see Annex I of this report.

Eligibility and underwriting alignment according to EU Taxonomy

As a financial sector entity and insurance group, GCO is subject to the obligations of the Taxonomy Regulation 2020/852, which determines which activities are environmentally sustainable.

These obligations include the duty to report to the market the eligibility and alignment indicators of the non-life underwriting activity related to climate change adaptation and mitigation objectives, to which the insurance activity is likely to be able to contribute.

Below are GCO's key indicators as at 31 de diciembre de 2024.

• • Volume of premiums aligned: 174,424,286.8 (3.8% alignment)
• • Volume of premiums eligible but not aligned: 718.520,1€ (0,02%)
• • Volume of non-eligible premiums: 4.389.312.391,8€ (96,2%)

The business lines analysed for compliance with Taxonomy requirements include non-life insurance related to coverage against climate-related risks:

• Medical expenses insurance
• Income protection insurance
• Occupational accident insurance
• Motor vehicle civil liability insurance
• Other motor vehicle insurance
• Marine, aviation and transport insurance
• Fire insurance and other property damage insurance
• Assistance insurance

It is important to note that the regulation excludes significant lines for the Group's business, such as credit and surety insurance, which account for over 40% of GCO's operations.

In the analysis of eligibility and alignment of non-life premiums covering climate-related risks, all products that include coverage for risks associated with climate phenomena (such as temperature, wind, water, floods, storms, snow, or similar events), whether chronic or acute, have been considered. Therefore, all the products that have been deemed eligible and/or aligned include coverage that help mitigate the adverse effects that weather risks can have on the Group's policyholders, not to mention the role played by the Consorcio de Compensación de Seguros in the coverage of extraordinary risks in the Spanish market.

For further information on the calculation methodology and breakdown of data under Annexes IX, X and XI of Commission Delegated Regulation (EU) 2021/2178 of 6 July 2021 see Annex I of this report.

03.

03. Social information (ESRS S)

Own workforce (S1)

GCO identifies its human team as the most important asset of the organisation and recognises that the key to delivering excellent service to its customers lies in individual commitment and teamwork. The Group understands this commitment as a way to inspire trust and create value for its customers and shareholders, maintaining an open mind towards new scenarios and contexts, and working with intensity and perseverance to turn difficulties into challenges.

Strategy

Material impacts, risks and opportunities and their interaction with strategy and business model (SBM-3, S1-4, and MDR-A)

Within GCO's value chain, impacts related to its own workforce may primarily affect the Group's operations.

Below are the potential negative impacts involving workforce, identifying those that are generalised (G) or individual (I), and their associated risk for the Group.

Negative impacts	Associated risk	Current financial impact	Risk management
Inadequate salary conditions for the role, or poor working conditions (unpaid overtime and/or excessive workloads). (G)	Reputational risk due to negative perceptions of the company arising from the working conditions it offers and the risk of talent loss resulting from employee dissatisfaction with their working conditions.	No significant impact has been identified during the period, nor any extraordinary effects that would require adjustments in the next period.	It is ensured that legislative standards for working conditions are met, with policies and practices implemented to ensure employee satisfaction. Social benefits are also offered.
Job offers with inadequate or worse conditions than those offered by competitors. (G)	Risk of loss of competitiveness by offering worse working conditions than those in the market.	No significant impact has been identified during the period, nor any extraordinary effects that would require adjustments in the next period.	GCO has its own agreement that improves on sector conditions. Employee achievements are recognised and rewarded, ensuring they have the necessary tools and resources, including technology, continuous training, and a safe working environment.
Lack of social dialogue with employees due to the absence of active communication channels through which they can express themselves openly about working conditions without fear of retaliation, intimidation, or harassment. (G)	Strikes and protests and disruption of activity	No significant impact has been identified during the period, nor any extraordinary effects that would require adjustments in the next period.	Maintaining an open and constructive dialogue with employees through periodic work climate surveys. Efforts are made to continuously improve working conditions and promote a positive work environment.
Situations of discrimination for any reason (race, age, religion, or gender) during the provision of the Group's activities. (G)	Reputational risk arising from discriminatory situations, which leads to the need to implement control measures for non discrimination across all areas of the Group.	No significant impact has been identified during the period, nor any extraordinary effects that would require adjustments in the next period.	Control measures are implemented to prevent discrimination, establishing clear policies and providing regular training on diversity and inclusion.

Index			Sustainability Report
01. General information 02. Environmental information 04. Governance information 06. Contributing to society	03. Social information 05. Business information		07. Annex I - Taxonomy 09. Annex III - ESRS Index 08. Annex II - Law 11/2018 10. External assurance report
Increase in the number of injuries or accidents among employees due to inadequate protection of their health and well-being, and the lack of regular health monitoring (medical check-ups, screenings, etc.) (I)	Risk of increased sick leave and disruption of activity	No significant impact has been identified during the period, nor any extraordinary effects that would require adjustments in the next period.	Promotion of a wellness itinerary, which includes webinars on health, time management training, healthy habits, nutrition, workshops on rest, gym, regular medical check-ups, flexible working, and family reconciliation measures. Absenteeism is monitored and analysed periodically to identify and correct causes, and work climate survey are conducted periodically.
Employee dissatisfaction due to detrimental leadership behaviours (e.g., lack of recognition and empathy). (G)	Risk of psychological sick leave and, consequently, reputational risk and disruption of activity.	No significant impact has been identified during the period, nor any extraordinary effects that would require adjustments in the next period.
Contribution to a wider gender pay gap, negatively affecting the economic situation of women working in the Group. (G)	Regulatory risk arising from fines or penalties for failing to comply with equal pay legislation.	No significant impact has been identified during the period, nor any extraordinary effects that would require adjustments in the next period.	Implementation of measures to comply with regulations on equal pay, including creating equal pay policies and conducting regular salary audits.
Skills gap between the training provided to employees and the actual training needs they have. (G)	Operational risk arising from employees performing tasks for which they are not qualified, resulting in the need for additional resources to manage employee development effectively.	No significant impact has been identified during the period, nor any extraordinary effects that would require adjustments in the next period.	Launch of strategies for professional development and continuous employee training. Employee satisfaction and the effectiveness of training programmes are regularly monitored.
Inequalities resulting from the lack of objective criteria in promotion and career development mechanisms. (G)	Loss of top talent due to the failure to offer promotion opportunities and training for new candidates.	No significant impact has been identified during the period, nor any extraordinary effects that would require adjustments in the next period.	Creation of professional promotion opportunities and continuous development for all employees, ensuring they have the tools and resources necessary to advance in their careers.
Accidental or unlawful destruction, loss, alteration, unauthorised disclosure, or access to employees' personal data. (I)	Regulatory risk arising from complaints, sanctions, and fines due to non-compliance	No significant impact has been identified during the period, nor any extraordinary	Implementation of policies and procedures to ensure compliance with data protection regulations. Technical and organisational security measures are implemented, ongoing staff training is provided, and a culture of

			training is provided, and a culture of
	fines due to non-compliance	any extraordinary
	with personal data	effects that would	compliance and transparency in
		require adjustments	personal data processing is promoted.
	protection regulations.		Internal and external audits are also
Lack of transparency with		in the next period.
			conducted to verify the effectiveness of
employees regarding, among
other things, the nature and use of			implemented measures and
			adjustments are made as necessary.
processed information. (I)

Security breaches leading to theft, leaks, or unauthorised access to sensitive/confidential employee information. (I)	Reputational risk arising from the theft, leakage, or unauthorised access to private or confidential company information, intellectual property, or financial data	No significant impact has been identified during the period, nor any extraordinary effects that would require adjustments in the next period.	Implementation of advanced cybersecurity measures, including protective technologies, regular penetration tests, and continuous monitoring services. Moreover, regular employee training programmes are
Interruption in the availability of digital or technology services. (I)	Risk of business continuity disruption due to potential threats and cyberattacks	No significant impact has been identified during the period, nor any extraordinary effects that would require adjustments in the next period.	conducted. Continuous monitoring of security systems, regular penetration testing to identify and fix vulnerabilities, and employee awareness level evaluation through simulations and practical exercises are carried out.

The negative impacts identified are an indirect consequence of the Group's business model. Nevertheless, the risks detected in connection with these impacts serve as a basis for adapting GCO's strategy.

Due to the nature of the Group's operations, which do not require intensive labour or expose minors to risky situations, there is no significant risk of forced labour or child labour. However, in order to mitigate all possible risks of this type and ensure that they do not actually exist, GCO maintains a firm commitment to compliance with labour regulations and human rights, as can be seen in the Code of Ethics and the Human Rights Policy described below.

Below are the potential positive impacts involving workforce and their associated opportunities for the Group.

Positive impacts	Associated opportunity	Current financial impact	Opportunity management
Higher satisfaction among people working in the Group due to a positive perception of their working conditions	Enhanced employee commitment stemming from a sense of corporate identity, pride, and belonging to the Group.	No significant impact has been identified during the period, nor any extraordinary effects that would require adjustments in the next period.	The Group is continuously developing policies and actions aimed at improving the employee experience.
Greater bargaining power for employees through union membership or other listening mechanisms.	Promote professional relationships and create a positive work environment with an improved workplace atmosphere.	No significant impact has been identified during the period, nor any extraordinary effects that would require adjustments in the next period.	GCO allocates working hours for union-related activities. Regular employee climate surveys are conducted to understand the needs of the Group's employees.
Offering society jobs with good working conditions	Attracting new talent due to favourable working conditions.	No significant impact has been identified during the period, nor any extraordinary effects that would require adjustments in the next period.	The Group's job offers include benefits such as remote working, continuous training, special insurance packages, and more.
Improvements in employees' quality of life and overall health through effective health and wellness management that reduces workplace accidents and occupational illnesses	Reduced absenteeism thanks to the Group's focus on employees' health and wellbeing	No significant impact has been identified during the period, nor any extraordinary effects that would require adjustments in the next period.	GCO provides health services such as free medical check ups, access to gyms at major sites, and health workshops with experts.
Equal opportunities for internal promotion among employees (e.g., shattering the glass ceiling).	Ensuring roles are filled by individuals with the best qualifications for the job.	No significant impact has been identified during the period, nor any extraordinary effects that would require adjustments in the next period.	GCO has set targets to increase the number of women in leadership and management positions.

02. Environmental information 04. Governance information 06. Contributing to society		08. Annex II - Law 11/2018 10. External assurance report

Accessibility to individualised technical training based on the employee's professional profile.	Increased productivity and service quality provided by trained and experienced employees.	No significant impact has been identified during the period, nor any extraordinary effects that would require adjustments in the next period.	The Group offers various training programmes tailored to professional profiles and business needs, ensuring employees have the necessary skills to excel in their roles.
Availability of career plans tailored to employees' needs and challenges.	Reduction in talent attrition and staff turnover.	No significant impact has been identified during the period, nor any extraordinary effects that would require adjustments in the next period.	Talent is identified and promoted to key positions.
Increased employee confidence regarding the handling of private data, including its transfer to external service providers	Improved trust and/or relationships with employees	No significant impact has been identified during the period, nor any extraordinary effects that would require adjustments in the next period.	Continuous updates to technical and organisational security measures to protect the personal data of stakeholders.
Enhanced sense of security among employees due to improved protection of devices, networks, applications, and systems affecting them	Strengthened trust and/or improved relationships with employees, along with greater organisational resilience to ensure business continuity in the face of potential threats and cyberattacks	No significant impact has been identified during the period, nor any extraordinary effects that would require adjustments in the next period.	Implementation of measures to ensure the privacy and confidentiality of employees' personal data.

Since there are no significant differences between the types of employees and non-employees, this analysis has been carried out without identifying specific groups of employees and non-employees, since the impacts, risks and opportunities affect everyone equally.

Management of impacts, risks, and opportunities related to personnel

Policies related to own staff (S1-1 and MDR-P)

The social policies, approved by GCO's Board of Directors, reflect the commitments and principles of conduct related to its personnel, as well as regarding the company's value chain.

• Code of Ethics: establishes the mandatory guidelines governing the behaviour of personnel, as well as administrators and certain agents within the Group's value chain, in their daily activities concerning the relationships and interactions they maintain with all stakeholder groups.
• Human Rights Policy: reflects the Group's commitments to Human Rights and the due diligence procedure to safeguard them. Among the commitments detailed in this policy is the assurance of freedom in work, rejecting any form of compulsory or forced labour and child labour. This policy also aligns with the United Nations Guiding Principles on Business and Human Rights.
• Equality and Diversity Policy: establishes GCO's commitment to effective equality of opportunities and the promotion of diversity as a fundamental competitive advantage in people management.
• Human Resources Policy: outlines the commitments made regarding the attraction, development, and retention of talent for effective employee management.
• Equality plans: available across all Group companies in Spain, aiming to improve the employment position of women in terms of their jobs and careers. Additionally, several entities have implemented a Protocol for the Prevention and Handling of Sexual Harassment and Gender-Based Harassment, as well as a Protocol for Psychological Harassment at Work. The Equality Commission is responsible for ensuring compliance with these protocols.
• Work Disconnection Policy: lays out the right to disconnect from work for all employees outside the normal working hours established in the collective bargaining agreement or contract, as well as during periods of holiday, sick leave and unpaid leave.
• Data Privacy Policy: outlines the commitments of all Group entities concerning the protection and processing of personal data and the guarantee of digital rights for individuals.

- Health and Safety Policy: sets forth the commitments, principles, and criteria for the comprehensive management of occupational risks inherent to the Group's activities; This ensures a safe and healthy work environment, with a strong focus on preventing injuries and adverse health effects for employees and associates.

Dialogue and Collaboration with own staff (S1-2, S1-3, S1-4, and MDR-A)

GCO views active communication with its employees as a cornerstone of creating the sustainable value the Group aims to achieve. The Human Resources Directorate is primarily responsible for ensuring this collaboration takes place and that the outcomes inform the company's strategic direction.

Trade unions and works councils

GCO guarantees freedom of association and collective bargaining pursuant to Article 5.8 of the Code of Ethics, encouraging social dialogue to consult and negotiate with employees.

In that regard, the Group companies encourage the participation of workers' representatives in collective bargaining processes, reporting on issues that may affect workers, as well as on the company's situation and the evolution of employment in the company.

Employee representatives are entitled to raise any issues with the Group's Human Resources Directorate at any time. This Directorate evaluates the concerns presented by the negotiating representative and forwards them to the appropriate committee or department for resolution.

The Human Resources Department then monitors and reviews the solutions adopted to address the incidents. In specific cases, due to the magnitude and nature of the incident, annual audits are scheduled to ensure the effectiveness of the measures implemented.

Works councils vary in their operation, as each establishes its own rules and periodicity according to its specific needs. Committees meet at different intervals (annually, quarterly, monthly, etc.) and even on an ad hoc basis to deal with specific situations. This flexibility allows each committee to adapt to the particularities of its context and to the issues requiring attention.

Work climate survey

The opinions and ideas of the Group's employees are important so that we can create a better working environment. Regular work climate surveys are conducted to help the Group gain deeper insights into employee perceptions and to identify opportunities for improvement. These surveys contribute to creating a more collaborative and effective work environment. Commitment and employee satisfaction are the key attributes that the Group seeks to maintain with its employees. The latest work environment survey for Occident employees produced the following results:

• • 93% of the respondents want to continue working in the Group.
• • They have given a score of 8.8 out of 10 for the level of collaboration and comradeship within the teams and departments.
• • The employees rated job security and pride of belonging to the organisation at 8.8 out of 10.

Based on the results obtained, a series of initiatives were launched, including the following: launching a corporate well-being plan, further promoting remote work and increasing the visibility of the professional opportunities generated by the Group.

In the case of Atradius employees, the following results were obtained after the last satisfaction survey:

• • The level of satisfaction with the organisation was 8 out of 10.
• • Employees also rate the organisation's inclusiveness and the degree of collaboration and team spirit within teams and departments an 8 out of 10.

These results have led to the Group rolling out global and local action plans in each country, which include, among other activities, the launch of workshops, development programmes and training to ensure the continuous learning and development of its employees.

The Human Resources Department continuously monitors the implementation of these initiatives in order to detect their effectiveness. In addition, surveys are carried out on employee opinion and satisfaction with some of these actions.

Whistleblowing channel

The Group also has a whistleblowing channel, accessible via the Group's website, available 24 hours a day, 7 days a week. This channel allows employees to confidentially and anonymously report inquiries and/or potential breaches of the Code of Ethics, any other internal policies or regulations, as well as actions or omissions that may result in criminal irregularities or the manipulation and/or falsification of financial data.

To ensure that employees are aware of the existence of the Whistleblowing Channel, GCO includes information about it in the Code of Ethics, which all employees must sign.

Additional information on the Whistleblowing channel is included in the Business Conduct (G1) of this Sustainability Report.

Chatbot

Additionally, to enhance the employee experience, a chatbot is available on the intranet, powered by artificial intelligence. This chatbot is designed to provide answers to inquiries related to training, recruitment and hiring, employee benefits, and workplace safety, among other topics.

Index				Sustainability Report
01. General information	03. Social information	05. Business information	07. Annex I - Taxonomy	09. Annex III - ESRS Index
02. Environmental information 04. Governance information 06. Contributing to society				08. Annex II - Law 11/2018 10. External assurance report

Metrics and targets for the Group's workforce (MDR-M and MDR-T)

The team is the most important asset when it comes to creating value for the customers and shareholders of the Group's entities. It consists of two groups: employees and non-employees.

Breakdown of employees (S1-6)

Employees are those workers who have an employment relationship with the Group, either regular or special. Therefore, people who have a commercial relationship are excluded.

Below are the main management indicators for employees, expressed as the number of people working for the Group (Headcount) as at December 31, 2024.

Employees by geographical area (ESRS 2 SBM-1)

Employees by workday and		2024
geographical area	Men	Women	Total
Spain	2,841	2,655	5,496
Netherlands	295	165	460
Germany	232	259	491
United Kingdom	176	155	331
Belgium	86	139	225
France	113	129	242
Italy	100	110	210
United States	76	70	146
Denmark	45	31	76
Mexico	64	57	121
Australia	28	35	63
Portugal	198	209	407
Poland	29	32	61
Hong Kong	19	23	42
China	8	31	39
Singapore	17	24	41
Ireland	26	12	38
Rest of the World	198	241	439
Total employees	4,551	4,377	8,928
%	51 %	49 %

Employees by type of	2024
contract and gender	Men	Women	Total
No. of permanent employees	4,459	4,247	8,706
No. of temporary employees	92	130	222
No. of employees with non-guaranteed hours	0	0	0
Total*	4,551	4,377	8,928

Employees by workday	2024
and gender	Men	Women	Total
No. of full-time employees	4,331	3,512	7,843
No. of part-time employees	220	865	1,085
Total*	4,551	4,377	8,928

*The scope of these indicators covers all employees of GCO (8,928 based on Headcount). Note 21a of the Annual Accounts includes data both at year-end and as an annual average according to the FTE criterion.

Index				Sustainability Report
01. General information	03. Social information	05. Business information	07. Annex I - Taxonomy	09. Annex III - ESRS Index
02. Environmental information 04. Governance information 06. Contributing to society				08. Annex II - Law 11/2018 10. External assurance report

Employee turnover	2024
Employees who left the company*	1,115
Turnover Rate (ratio of employees who left the company to total employees)**	12.5 %

*Includes employees who have voluntarily left the company, retired, passed away, or been dismissed. With the aim of achieving better organisational alignment of the workforce in preparation for the unification of Occident Seguros, GCO has implemented a voluntary redundancy plan for Occident business over the last two years.

**Employee turnover rate is calculated as the ratio of employees who have left the company to the total number of employees.

Breakdown of non- employees (S1-7)

Non-employees are those self-employed workers who have a contract with the Group to provide labour, or individuals provided by companies mainly engaged in employment-related activities, such as Temporary Employment Agencies.

	2024
Freelance workers	27
People provided by Temporary Employment Agencies	88

*The data above reflects headcount figures as at 31 December 2024

Coverage of collective bargaining and social dialogue (S1-8)

To improve the regulation of the working conditions of its employees, the Group strives to guarantee that the largest possible proportion of its staff throughout the world are covered by collective bargaining agreements.

In Occident, all companies are governed by collective bargaining agreements and in Mémora, employees who are not covered by collective bargaining agreements are covered by company agreements negotiated with the Workers' Representation in each area and by the Workers' Statute. In Atradius, for its part, has a worker representation agreement with the European Works Council.

Regarding social dialogue, GCO holds regular meetings with employees and trade unions. In Spain, where more than 10% of the Group's total employees are based, 95% of employees are represented by worker representatives.

Employees covered by collective bargaining agreements	2024
Country	% of employees covered
Spain	96.1 %
Netherlands	95.2 %
Germany	93.9 %
United Kingdom	88.8 %
Belgium	96.9 %
France	96.7 %
Italy	96.7 %
United States	0.7 %
Denmark	93.4 %
Mexico	10.7 %
Australia	0
Portugal	97.8 %
Poland	0
Hong Kong	0
China	0
Singapore	0
Ireland	28.9 %
Rest of the World	21.2 %
Total	86.4 %

Index				Sustainability Report
01. General information	03. Social information	05. Business information	07. Annex I - Taxonomy	09. Annex III - ESRS Index
02. Environmental information 04. Governance information 06. Contributing to society				08. Annex II - Law 11/2018 10. External assurance report

Diversity and equal opportunity (S1-5 and S1-9)

GCO is firmly committed to effective equal opportunities. This commitment promotes diversity as a key competitive advantage for our businesses and a priority strategy in people management and the generation of an inclusive culture that promotes a balance between professional and personal life in all areas.

Pursuant to Organic Law 3/2007 on the effective equality of women and men, GCO has an Equality Plan in all Group companies in Spain, the goal of which is to enhance the employment position of women in relation to their jobs and careers.

Furthermore, several of the entities have a protocol for preventing and dealing with sexual harassment for reasons of sex and moral harassment, and the Equality Committee is responsible for ensuring compliance with this protocol.

As part of its Sustainability Master Plan, GCO has a strategic line on Diversity, Equality, and Inclusion, with the goal of:

• • Reducing the wage gap for all levels of the organisation by following the guidelines of Directive 2023/970 on transparency and equal pay for men and women.
• • Boosting the presence of women in middle management and managers.

In addition, to reinforce its equality commitments, GCO runs training courses and webinars on equality for all employees and for the Group's Board of Directors, with the goal of raising awareness of the basic legislative framework regarding gender equality in the work environment and raising awareness among employees on various related topics such as subconscious bias, the promotion of psychological safety at work and empathy.

Finally, the Group belongs to the EWI (Empower Women in Insurance) Network, an industry initiative advocating real and effective gender equality, whose goal is to boost the presence of women in insurance management.

Senior management (Grupo Catalana Occidente S.A) by gender	2024
	Men	Women
No. of employees in senior management	3	2
%	60 %	40 %
Employees by age and gender groups	2024

Men	Women	Total
390	404	794
2,180		4,582
1,981		3,552
4,551	4,377	8,928
		2,402 1,571

Suitable salaries (S1-10)

GCO ensures that its employees have access to a fair salary that meets their needs, taking into account the economic and social conditions of the countries in which it operates. To achieve this, it ensures compliance with at least the minimum wages established by law and the collective agreements for workers determined by each country, taking into account purchasing power, national productivity trends, as well as the amounts, distribution, and growth of salaries.

Social protection (S1-11)

Social protection includes measures from public or private organizations aimed at protecting individuals against loss of income due to situations such as illness, retirement, unemployment, workplace accidents, and other social contingencies. In this regard, the Group works to ensure that all its employees have adequate social protection by providing coverage for situations that are not covered by public programmes.

The benefits provided by the company include accident insurance, life insurance, pension plans and retirement bonuses, among others.

Inclusion of people with disabilities (S1-12)

The Group is committed to employing people with different abilities. At year end, 124 people with disabilities form part of the Group's workforce, accounting for 1% of the Group's total employees.

In that regard, the entities Occident and GCO Tecnología y Servicios have been granted the certificate of exceptionality awarded by the State Public Employment Service, under the provisions of Royal Decree 364/2005, of 8 April, governing the exceptional alternative compliance with the reserve quota in favour of disabled workers. This certificate of achievement allows the aforementioned Group companies to cover the percentage of the workforce with disabilities established by Law through service provision agreements with authorised Special Employment Centres.

With a view to guaranteeing Universal Access for people with disabilities, the Group has offices and work centres where access is enabled for people with reduced mobility, both for its own employees and for associates, customers and visitors. Furthermore, all new facilities have ramps, parking spaces and toilets for people with disabilities. Accessibility to information has also been broadened, and the Group's website is equipped with the most advanced accessibility techniques and guidelines around the world, making it possible for all kinds of users to browse the site.

Index				Sustainability Report
01. General information	03. Social information	05. Business information	07. Annex I - Taxonomy	09. Annex III - ESRS Index
02. Environmental information 04. Governance information 06. Contributing to society				08. Annex II - Law 11/2018 10. External assurance report

Training and skills development (S1-5 and S1-13)

GCO has always prioritised human and professional development, investing in continuous training, giving priority to internal promotion, encouraging personal motivation, teamwork and innovative initiative. That is why, in Occident, there is a series of professional development programmes, appropriately structured to accompany the employees through their growth process.

Professional development programmes

• Polaris Programme: Designed for new hires, it is a welcome programme in which all the opportunities offered by the Group are presented to employees.
• Delta Programme: For newly incorporated people, this programme seeks to make sure that employees are better acquainted with the reality of their company and the functions and challenges of each department.
• Insignia Programme: intended for developing people with a multi-company vision, in which the Group's corporate areas are presented and employees are encouraged to strengthen their personal brand.
• Apolo Programme: Dedicated to employees who have assumed responsibility for managing people and teams, to work on developing the Group's own management skills and tools.

These programmes are supplemented by many other training courses that the training units are continually updating. In addition, skills-related training and development for employees is promoted through the Goodhabitz platform.

Atradius has "Atradius Academy" which is a learning platform available to all employees where they can find a wide selection of online courses. The aim is to encourage employees to take an active role in their own training development and take advantage of all these opportunities to keep refreshing their knowledge and improving their professional skills.

Similarly, the group is focussing on talented young people who are enthusiastic about their professional development, promoting the employment of students and recent graduates through university and school agreements. Work placements in the company encourage young people to learn and grow, giving them the opportunity to demonstrate their aptitudes and develop new knowledge and skills.

In addition, the Group has a job standardisation model that is has produced itself. This management tool is considered essential in establishing professional development pathways.

To support the continuing training of its employees, the Group has provided more than 215,998 hours of training, which is an average of 49.3 hours per employee.

Training hours	2024
	Men	Women
No. of training hours	110,150	105,848.3
Average training hours per employee	24.2 %	24.2 %

Additionally, within the Sustainability Master Plan, specific training objectives have been set, including offering ongoing training that contributes to the efficient use of technology and organising continuous training programmes on Sustainability.

In compliance with the above objectives, in 2024 training was provided on artificial intelligence tools such as Copilot and on sustainability-related topics.

Sustainability training

GCO provides compulsory sustainability training to all Group employees, as well as to GCO's Management Committee and Board of Directors.

The training covers basic concepts on sustainability, climate change and environment, ESG risks, regulation and trends, sustainability initiatives and GCO's sustainability strategy. The aim of this training is to involve the entire workforce in the Group's sustainability, raising their awareness of the ESG concepts and giving them guidelines on how to contribute to obtaining the sustainability objectives.

Performance assessment

Performance assessment allows us to have a full vision of the internal talent in the Group, and to take decisions and design action plans based on the needs detected.

The Group's performance assessment procedures consists of the following phases:

• Self-assessment: Employees assess their skills, as well as achievement of the goals set.
• Assessment by the manager: the team managers conduct the assessment of the employees.
• Personal interview and personalised improvement plan: the manager and the employee share the conclusions and set the goals for the forthcoming year.

Employees who receive regular		2024
performance evaluations	Men	Women

No. of employees	2,242	2,086
%	49 %	48 %

Index				Sustainability Report
01. General information	03. Social information	05. Business information	07. Annex I - Taxonomy	09. Annex III - ESRS Index
02. Environmental information 04. Governance information 06. Contributing to society				08. Annex II - Law 11/2018 10. External assurance report

Personnel health and safety (S1-5 and S1-14)

The Group's entities in Spain have a health and safety service in accordance with current labour legislation. In addition, there are internal procedures and regulations related to occupational health and safety, including selfprotection plans for all buildings, risk assessments and annual action plans.

In turn, there is a joint health and safety service that covers most of the Group's insurance companies, allowing for a more consistent management. Companies that are not covered by this service maintain their own or outsourced service, adhering to the criteria of efficiency and speciality.

The general aim is to achieve the following objectives in occupational health and safety:

• a) Compliance with current legislation for the prevention of occupational risks and the working conditions of employees.
• b) Reduction and elimination of workplace accidents and occupational diseases in all work centres.
• c) Development of a health and safety culture based on the consideration of people as its main asset.

In addition, the Group companies with more than 50 employees and with employee representation have Health and Safety Committees that are entrusted with the task of protecting the health and safety of the employees. The meetings are annual, although extraordinary meetings can be requested to deal with any urgent topics. There is no general policy for the Atradius countries, as most of these countries have their own policy in accordance with local legislation or collective bargaining agreements.

At the corporate level, there is a specific health and safety policy that applies universally, which reflects the Group's commitment to its employees on these matters.

Wellness itinerary GCO has implemented a Wellbeing Itinerary comprising various programmes that promote healthy lifestyle habits, focusing on nutrition, physical activity, and emotional health, among other aspects.

In this regard, employees have access to these programmes with the aim of acquiring resources, tools, and guidelines that support comprehensive development, self-awareness, self-esteem, personal and social wellbeing, and the creation of more positive and cohesive group environments. There are also webinars given by experts on healthy eating, sleep habits, mindfulness and managing telework.

Additionally, the Group promotes health by offering medical check-ups to its employees. Furthermore, various workplaces offer services for the care and wellbeing of employees (such as healthy meal options, gyms, swimming pools, tennis and paddle courts), or agreements with special conditions for employees at locations without these services.

Besides the above mentioned steps implemented to protect employees, the Group has collective agreements that address issues related to their health and the prevention of occupational risks.

	2024
Accident rate indicators	Employees	Non- employees
People covered by a health management system	8,928	103
% of people covered by a health management system	100 %	89.6 %
No. of deaths as a result of work-related injuries*	0	0
Number of occupational accidents	97	0
Work-related accident rate	1.1 %	0
No. of work-related illnesses	0	—
No. of days lost due to work-related injuries	3,622	—
No. of deaths due to work-related accidents	0	—
No. of work-related illnesses	0	—
No. of deaths due to work-related illnesses	0	—

*No deaths have been recorded among suppliers working on company premises

Work-life balance (S1-5 and S1-15)

In the area of flexibility and reconciliation, the Group is promoting new ways of working that favour selfmanagement of time, focusing on the productivity and efficiency of employees. It also makes these various measures available in order to respond to their personal needs.

Remote working

Remote working was introduced for the Group's employees in 2021. This model sets out various teleworking archetypes depending on the type of position: hybrid working, which allows employees to combine in-office work with remote work, and remote working, when the majority of the working day is carried out remotely.

As part of its 2024-2026 Sustainability Plan, GCO set the objective of evolving the teleworking model so that all employees working in a hybrid model, including technical and office staff, could work up to 40% of their time remotely. This objective has already been achieved in the current year.

Work-life balance

The Group is focussing on the balance between people's personal and professional lives as a lever to encourage real equality and to do this it has specific measures in the different countries in which it operates.

In Spain, some of the key measures available to employees are: flexible start and finish times, singleshift working hours on Fridays and during the summer months, the option of voluntary leave of absence for one year with guaranteed re-entry, as well as canteen services, medical centres, physiotherapy and a sports club, available at some of its sites. In addition, social benefits are offered, such as a birth award, assistance for family members with disabilities, life insurance above the terms of the sector's collective agreement, and personal loans.

In all other countries, the measures aiming at facilitating and improving people's work-life balance are subject to the regulations in each country. We can highlight, for example, the granting of personal loans in the United Kingdom or a health clinic that allows employees in the Netherlands to consult a doctor when they experience an imbalance between their work and personal life.

At GCO, all employees are entitled to family leave, with 3.8% (4% women and 3.7% men) of them taking such leave in 2024.

Regarding the right to disconnect, the Group has an internal policy on the right of all employees to disconnect from work outside of the standard working hours set by the collective agreement or contract, as well as during breaks, sick leave, and leave. Among other items, this policy includes the right of employees not to answer emails, messages and calls of a professional nature, as well as recommendations to promote the responsible and effective use of digital tools. Throughout the year, the Group's employees receive training and education on the use of electronic devices and digital resources.

Remuneration and benefits (S1-16)

The group focusses on a remuneration system based on a meritocracy and rewarding performance, cooperation and teamwork. The different collective bargaining agreements that apply, depending on the company, establish salary bands to ensure internal equity and attract talent. In these agreements, under no circumstances are there pay gaps on the basis of gender. The Group also periodically carries out aggregate remuneration studies between men and women to ensure that it applies a non-discriminatory remuneration policy based on the responsibilities assumed and the results obtained.

Generally speaking, GCO's compensation model includes fixed and variable annual remuneration, as well as a flexible remuneration system that has included, among others, a Share Delivery Plan in recent years. Other examples of flexible remuneration include: payment of public transport tickets, health insurance, childcare and job-related training.

On the other hand, GCO employees also have an extensive programme of social benefits including pension plans, company canteen or compensation for meals, financing of employee training (university training, MBA, languages), help for disabled family members, personal loans, birth bonus, offers and specific agreements for vehicle leasing.

Likewise, GCO has partnership agreements with seven prestigious institutions (UNIR, UOC, EADA, ISDI, EAE, The Valley and Deusto Business School). These agreements offer discounts of up to 40% on training programmes to GCO employees and, depending on the centre, their families.

Index				Sustainability Report
01. General information	03. Social information	05. Business information	07. Annex I - Taxonomy	09. Annex III - ESRS Index
02. Environmental information 04. Governance information 06. Contributing to society				08. Annex II - Law 11/2018 10. External assurance report

Finally, Occident employees who end their employment period due to retirement have the opportunity to take part in the Retirees' Association, the purpose of which is to foster and promote communication and relations between its members through social and cultural activities that are co-financed by the company and consist of visits to museums, conferences, themed routes, attending shows and gastronomic gatherings.

The pay gap and the total remuneration ratio of the Group's employees are shown below:

Pay gap and total remuneration ratio	2024
Average remuneration ratio women/men (Gender pay gap)	23.8 %
Total remuneration ratio	26.67

The pay gap has been calculated as the ratio of the difference between the average pay of men and women to the average pay of men. However, the pay gap does not distinguish between the multiple variables that can influence the gender pay gap.

To improve comparability, GCO has calculated the adjusted pay gap which gives a closer picture of the reality of the Group's employees' salaries, as it allows for an analysis of the pay gap between men and women in similar roles. This indicator has been obtained using the same criteria as the total pay gap but adjusting for activity and functions within the organisation in the case of GCO and Occident employees, and adjusting for job level classification in the case of Atradius employees.

Taking this detailed adjustment into account, the gap is considerably reduced for both GCO and Occident (7.2%) and Atradius (7.8%).

In order to deepen this analysis and further reduce the pay gap, GCO intends to carry out a more comprehensive study in the coming years, incorporating variables such as age, country, seniority and specific function categories within the company. It is expected that this more detailed assessment will allow a more accurate identification of the factors affecting the pay gap and contribute to the implementation of effective measures to reduce the pay gap.

The annual total remuneration ratio has been calculated taking into account all Group's employees, being the ratio between the annual total remuneration (including fixed, variable and in-kind remuneration) of the highest paid person and the median annual total remuneration (including fixed, variable and in-kind remuneration) of all employees, excluding the highest paid person.

Respect for human rights (S1-17)

As laid down in the Code of Ethics, the Human Resources Policy and the Human Rights Policy approved by the Board of Directors, the Group supports, respects and contributes to the protection of internationally acknowledged fundamental human rights. The Group makes every effort not to be an accomplice in any form of abuse or violation of human rights among its stakeholders and undertakes to defend their compliance in all its activities and in the geographical areas where it operates.

Respect for human rights is a responsibility of all persons and entities to which the Group's Code of Ethics applies. Along with other basic standards of behaviour, the Group adheres to the Universal Declaration of Human Rights, as well as the United Nations Guiding Principles on Business and Human Rights, the International Labour Organisation's Declaration on Fundamental Principles, Rights at Work and Conventions and the OECD Guidelines for Multinational Enterprises.

In this regard, the activity of Occident and Mémora is carried out in Spain, Portugal and the Principality of Andorra, where child labour and forced labour are subject to intense scrutiny by the labour authorities. The Group's insurance, reinsurance, management and funeral companies all adhere to the legislation in force and it has not been necessary to include special mechanisms to prevent such breaches. Equally, in the value chain of the insurance entities, practically all their suppliers are national or from jurisdictions in which the same standards apply, meaning that it has not been necessary to apply additional measures.

In terms of discrimination, the Group's Code of Ethics and Diversity and Equality Policy promote real equal opportunities, going beyond gender diversity, and do not accept any form of discrimination in the professional sphere based on age, race, sex, religion, political opinion, origin, sexual orientation, or disability.

In 2024, of the total of communications submitted by the employees through the whistleblower channels, 7 were substantiated cases of discrimination. However, no fines and sanctions for damages resulting from those cases.

Moreover, in 2024 there were no substantiated complaints of human rights violations across the Group.

02. Environmental information 04. Governance information 06. Contributing to society 08. Annex II - Law 11/2018 10. External assurance report

Workers in the value chain (S2)

Within GCO's value chain, there are three types of service providers:

• Suppliers, which provide general products and services not directly related to business: cleaning, maintenance and IT support, among others.
• Associates, whose services are essential to the insurance and funeral activities: adjusters, lawyers, workshops and repair professionals, florists, etc.
• Distributors, who are authorised by GCO to market and sell the Group's products and services. This group includes insurance agents, brokers, and other intermediaries.

Strategy

Material impacts, risks and opportunities and their interaction with strategy and business model (SBM-3, S2-4, and MDR-A)

Within GCO's value chain, impacts related to workers in the value chain can primarily impact suppliers, associates, agents, and the Group's processes connected to them.

Below are the potential negative impacts concerning the workers in the value chain and their associated risks for the Group.

Negative impacts	Associated risk	Current financial impact	Risk management
Lack of equality of opportunity in the selection of suppliers and associates	Risk of failing to select the most capable supplier or associate, which could result in inefficiencies in the services provided	No significant impact has been identified during the period, nor any extraordinary effects that would require adjustments in the next period.	Adequate definition of the profile of the supplier or associate based on the specific needs of the network, ensuring that the required skills and capabilities are clearly identified. Highly qualified Human Resources personnel are also involved to evaluate and select the most suitable candidates. Application of the Supplier Selection Manual.
Difficulty in complying with ESG requirements due to a lack of resources among suppliers.	Risk of being unable to find suppliers who meet the minimum requirements and ESG principles, as well as risks or costs associated with having to switch to new providers if compliance changes	No significant impact has been identified during the period, nor any extraordinary effects that would require adjustments in the next period.	Diversification of recruitment and selection sources, allowing the identification of suppliers who meet minimum requirements and ESG principles while ensuring options in the event of changes in compliance. Periodic reviews of ESG criteria and supplier suitability are conducted, ensuring their continuity or implementing appropriate adjustments.
Lack of environmental oversight and environmental non compliance by the supply chain, resulting in negative environmental impact Lack of monitoring/control of social requirements in the supply chain, contributing to the lack of protection for human rights	Potential regulatory non compliance with the future Due Diligence Directive (pending clarification on its application to the financial sector)	No significant impact has been identified during the period, nor any extraordinary effects that would require adjustments in the next period.	Integration of ESG aspects into supply chain management. Policies and practices promoting sustainability, employee training, and operational process modifications are implemented.
Inadequate working conditions or remuneration for distributors (agents)	Risk of talent loss in the sales network	No significant impact has been identified during the period, nor any extraordinary effects that would require adjustments in the next period.	Implementation of competitive working conditions to attract and retain talent, continuously improving working conditions, promoting a positive work environment, and highlighting social benefits.

Index				Sustainability Report
01. General information	03. Social information	05. Business information	07. Annex I - Taxonomy	09. Annex III - ESRS Index
02. Environmental information 04. Governance information 06. Contributing to society				08. Annex II - Law 11/2018 10. External assurance report

Accidental or unlawful
destruction, loss, alteration,			Periodic review of policies and procedures,
unauthorised disclosure, or access	Regulatory risk arising	No significant impact has	records of processing activities, impact
to personal data within the value	from complaints, sanctions,	been identified during the	assessments, and contractual
chain	and fines due to non	period, nor any	documentation. Implementation of
Lack of transparency with value	compliance with personal	extraordinary effects that would require adjustments	technical and organisational security
chain agents regarding, among	data protection regulations	in the next period.	measures, compliance training and culture,
other things, the nature and use of			and internal and external audits.
processed information
	Reputational risk arising
Security failures leading to theft,	from the theft, leakage, or		Implementation of advanced
leaks, or unauthorised access to	unauthorised access to		cybersecurity measures, including
sensitive or confidential	private or confidential		protective technologies, regular
information belonging to value	company information,	No significant impact has	penetration tests, and continuous
chain agents	intellectual property, or	been identified during the	monitoring services. Moreover, regular
	financial data	period, nor any	employee training programmes are
		extraordinary effects that	conducted. Continuous monitoring of
		would require adjustments	security systems, regular penetration
Interruption in the availability of	Risk of business continuity	in the next period.	testing to identify and fix vulnerabilities,
	disruption due to potential		and employee awareness level
digital or technology services	threats and cyberattacks		evaluation through simulations and
			practical exercises are carried out.

Due to the nature of its business, the Group does not operate in geographical areas with significant risks of human rights violations, prioritizing stable environments that ensure the integrity of its operations and compliance with its ethical commitments.

Below are the potential positive impacts concerning the workers in the value chain and their associated opportunities for the Group.

Positive impacts	Associated opportunity	Current financial impact	Opportunity management
Good working conditions for suppliers, associates, and agents that allow them to be satisfied with the relationship they maintain with the Group	Supplier, associate, and agent loyalty, which leads to potential benefits for the Group	No significant impact has been identified during the period, nor any extraordinary effects that would require adjustments in the next period.	Provision of adequate technological tools, such as portals and applications, that optimise the work of associates, improving their efficiency and adaptability to market demands.
Support for suppliers and associates to adopt better ethical and environmental practices	Reduction of future regulatory risks related to supply chain due diligence	No significant impact has been identified during the period, nor any extraordinary effects that would require adjustments in the next period.	Continuous research and development of new, more sustainable repair methods to ensure sustainability and efficiency in all operations, aligning business objectives with ethical and environmental principles.
Reduction of negative impacts on society and the environment by the Group providing services through a network of associates that meet ESG criteria and practices, and by selecting suppliers based on ESG criteria	Reduction of the Group's environmental footprint as suppliers and associates provide their services with ESG criteria	No significant impact has been identified during the period, nor any extraordinary effects that would require adjustments in the next period.	Adaptation of existing systems to measure the carbon footprint generated in each professional intervention, setting clear reduction targets, and tracking activities in detail.

Promotion of respect for human rights through the inclusion of sustainability clauses in the Group's contracts with suppliers and the requirement for associates to adhere to the Group's ethical code	Promotion of an ethical culture that prevents and minimises the risks of unethical conduct or practices in the value chain	No significant impact has been identified during the period, nor any extraordinary effects that would require adjustments in the next period.	Strengthen awareness and commitment to ethical principles at all levels. All contracts will be ensured to include a link to the Group's Ethical Code, guaranteeing its accessibility and constant updating.
Greater sense of security for customers and other value chain groups about how private data is used, including its transfer to other external service providers.	Increased trust and/or improved relationships with customers and other value chain groups.	No significant impact has been identified during the period, nor any extraordinary effects that would require adjustments in the next period.	Continuous updates to technical and organisational security measures to protect the personal data of stakeholders.
Greater sense of security for value chain agents due to enhanced protection of the equipment, networks, applications, and systems that may affect them	Increased trust and/or improved relationships with value chain groups, and enhanced company resilience to ensure business continuity in the face of potential threats and cyberattacks	No significant impact has been identified during the period, nor any extraordinary effects that would require adjustments in the next period.	Implementation of measures to guarantee the privacy and confidentiality of personal data of value chain agents. Promote transparent communication on data protection practices.

No specific groups have been identified among workers in the value chain for which differentiated incidents, risks and opportunities have been observed, beyond the general classification by type of service provided (suppliers, associates and distributors). For this reason, an analysis has been carried out identifying incidents, risks and opportunities for these types of workers in the value chain, without determining groups with particular characteristics within them.

Management of impacts, risks, and opportunities related to workers in the value chain

Policies related to workers in the value chain (S2-1 and MDR-P)

The Group has a supplier selection manual that outlines the criteria to be considered when choosing suppliers, including ESG aspects This manual is reviewed annually by the Compliance Verification Committee, which will propose the necessary modifications for approval by the Board of Directors. Furthermore, the relationship between GCO and the workers in the value chain is also governed by other sustainability-related policies of the Group, such as the Sustainability Policy, the Code of Ethics, and the Data Privacy Policy, among others.

On the other hand, the commitments and due diligence processes related to human rights carried out by the Group in its management with workers in the value chain are specified in the Human Rights Policy.

All these policies are available on the GCO website.

Collaboration processes and impact resolution for workers in the value chain (S2-2 and S2-3)

As every year, the "Employee Satisfaction Survey" was sent out to 2,885 associates, which was responded to by 51%. The main objective of this survey is to understand the relationship between the Group and its supply chain through their opinions, ratings, and experiences, as well as to identify areas for improvement and resolve any incidents that have been detected. The Prepersa Directorate is responsible for ensuring that this collaboration takes place.

Some of the findings from the 2024 survey are as follows:

• Associates highly value the trust that GCO places in them, giving this issue a score of 8.5.
• They state that the organisation helps them to resolve any queries, impacts or any problems that may arise, giving this question a score of 8.4.
• They rate the Group's professional competence as very good (8.7) and the Group's contact accessibility (8.4).

Likewise, GCO measures the satisfaction indicators of its mediators annually through the Exclusive Agent Opinion Study conducted by ICEA. This study allows the Group to ensure the general workplace well-being of its agents, as well as identify their needs or any circumstances that may hinder the normal development of their activity.

Finally, all workers in the value chain have access to the Group's Whistleblower Channel, allowing them to confidentially and anonymously report any concerns or impacts.

Index				Sustainability Report
01. General information	03. Social information	05. Business information	07. Annex I - Taxonomy	09. Annex III - ESRS Index
02. Environmental information 04. Governance information 06. Contributing to society				08. Annex II - Law 11/2018 10. External assurance report

Metrics and targets of the workers in the value chain (MDR-M and MDR-T)

Characteristics of the workers in the value chain

Suppliers

During 2024, the Group has maintained close collaboration with a wide network of suppliers, made up of more than 13,762 suppliers with an expenditure of 519.2 million euros.

Specifically, GCO and Occident have worked with a total of 3,666 suppliers, which has entailed an expenditure of 156.1 million euros and Atradius has collaborated with 5,602 suppliers, which has entailed an expenditure of 212.5 million euros. These suppliers ensure the efficient supply of general products and services for the entities that make up the Group's insurance activity.

Finally, to maintain the quality and continuity of the Group's funeral services, Mémora has a network made up of 4,494 suppliers, reaching an expenditure of 150.6 million euros.

The Group bases its supplier selection on principles of objectivity, impartiality, transparency, equal treatment, and quality. The Group also strives to encourage responsible management by suppliers, including social and environmental aspects among the criteria for their selection. In Occident, these criteria are laid down in internal regulations and, specifically, in the supplier selection manual.

On the other hand, Atradius has a Procurement Policy that regulates supplier management.

In Mémora, the selection, monitoring and assessment criteria in the procurement process have been designed to meet the requirements of the integrated quality, environmental and social responsibility management system. This system follows the guidelines of the UNE-EN ISO 9001, ISO 14001 and SGE 21 standards, among others. Whenever possible, preference is given to suppliers that meet environmental criteria (e.g., ISO 14001 certification, low noise and atmospheric emissions, low electricity and water consumption, etc.).

Associates

Prepersa is the GCO company that manages the associates specialized in solving claims for Occident claims: loss adjusters, lawyers, garages and repairers. The workshops are part of a network named AutoPresto and the repairers are from the Technical Repairs Service (TRS).

In 2024, Prepersa has collaborated with 2,873 associates, at a total cost of 270.1 million euros.

Type of associates

The associates are there to ensure the effectiveness and speed of the service provision when resolving the impacts suffered by Occident customers, as well as to provide those entities with technical information related to risks, claims and other circumstances. For this reason, Prepersa's actions must always be quality-oriented. Their activities are certified under the UNE-EN ISO 9001-2015 quality standard, ensuring that processes focus on continuous improvement and that their organisation is efficient in planning, control, and results analysis.

Mémora associates include florists, legal advisors, escort vehicle providers, musicians, stonemasons, and grief counsellors.

Intermediaries: agents and brokers

Intermediaries are a key part of the Group's relationship with its environment. They come into contact with customers, generate confidence in order to understand their particular needs, and provide value through their professionalism and closeness. A strong communication and close relationship with intermediaries are fundamental to delivering quality service to customers.

To embody the values of trust, peace of mind, and security that the Group aims to offer its customers, the companies provide their mediation network with support that, in addition to training, includes other tools that positively impact their activity. These include the option of creating their own website and profile on social networks or the use of corporate material to present their services visually.

Index				Sustainability Report
01. General information	03. Social information	05. Business information	07. Annex I - Taxonomy	09. Annex III - ESRS Index
02. Environmental information 04. Governance information 06. Contributing to society				08. Annex II - Law 11/2018 10. External assurance report

Integration of ESG issues into the value chain (S2-4, S2-5, and MDR-A)

The Group extends its principles throughout its value chain to build a network of suppliers and associates aligned with its corporate values and a distribution network that reflects the Group's commitment to sustainability.

Regarding suppliers, throughout 2024, the Group continued incorporating clauses into contracts with GCO, Occident and Mémora suppliers to ensure alignment with the Group's ethical and sustainability principles and to confirm their compliance with applicable labour regulations and tax obligations. In 2024, 490 contracts with suppliers included sustainability clauses.

Regarding geographical distribution, the Group works mainly with local suppliers, positively impacting the economic development of the communities in which it operates and reducing operational risks by minimising service execution times.

Evaluation of ESG risk of suppliers

As a new initiative this year 2024, GCO has started assessing the ESG risk of its suppliers through EcoVadis, the world's largest provider of sustainability ratings. This evaluation has enabled the Group to understand the ESG situation of its supply chain, identifying potential risk areas and the level of performance in managing them, with the aim of collaborating with these suppliers to help them progress towards their sustainability goals.

In Occident, due to its activity and presence in Spain, the Group prioritizes contracting self-employed individuals or small businesses within this territory, with 98% of spending allocated to local suppliers. In Atradius, the Group directs most of its spending toward developing the business fabric in the geographical areas where it operates, with 82% of spending allocated to local suppliers. Lastly, in Mémora, 99% of expenses is allocated to hiring local suppliers.

On another note, GCO is working toward having its General Shareholders' Meeting certified by AENOR as a sustainable event under the ISO 20121 standard for sustainable event management. In this context, the Group has set goals to contract local suppliers, promote hiring young and diverse support staff, implement sustainable mobility measures, and collaborate with event suppliers to minimise waste, among other initiatives.

Regarding associates, they must all respect the corporate values in order to be able to maintain a relationship with the Group. Therefore, they must adhere to the GCO Code of Ethics before receiving any order.

In its Sustainability Master Plan, the Group has committed to developing sustainable claims management practices. To this end, Prepersa is promoting initiatives focused on efficiency and resource minimisation, such as prioritising repairs over replacements and applying new technologies that enable more sustainable water damage detection and repair. This also reduces repair times and eliminates the need for additional materials.

The Group has also implemented a associate Coverage Plan to ensure the strategic placement of associates in all areas where repair services are offered, saving time on travel and improving efficiency. This plan not only enhances customer service but also lays the groundwork for future plans to reduce CO² emissions indirectly generated by travel.

The Group continues to invest in videoclaim inspections for weather-related impacts, employing a team of specialist adjusters dedicated exclusively to these cases. This approach increases efficiency by managing more claims, eliminating emissions from travel, and improving customer perception.

As a new initiative this year 2024 Artificial Intelligence has been introduced to inspect pre-owned vehicles before underwriting auto insurance. This innovation makes the process more efficient, reducing the time it takes for customers to complete their contracts.

It is also worth highlighting the implementation of a project to digitise all the documentation issued to customers and professionals, thereby cutting down on the use of paper. This documentation includes contracts with associates, the compensation proposal given by the loss adjuster to the customer, the Home Claims Intervention Sheet (STR) and the Inspection Report following repairs in AutoPresto garages.

Environmentally, all AutoPresto garage contracts include a clause requiring the garages to be accredited as waste managers, providing Prepersa with the information required to justify this. This clause is also included in contracts with the network of garages.

Certified sustainable garages

The vehicle repair service that GCO offers through the AutoPresto garage network has become the first in Spain to receive the "CZ Sustainable Garage Network" certification. This seal guarantees that its activity is carried out in accordance with sustainability and environmental care criteria.

02. Environmental information 04. Governance information 06. Contributing to society 08. Annex II - Law 11/2018 10. External assurance report

At present, the supply chain is not audited for ESG issues.

With regard to the geographical distribution of associates, 98% of the expense was allocated to local associates during the period.

Regarding intermediaries, taking into account current trends and the needs of its customers, GCO is committed to encouraging the figure of the hybrid salesperson, training mediators to provide them with resources and skills that enable them to adapt to the digital reality with a view to providing a better service to customers.

For the commercial management of intermediaries, Occident has implemented Gestiona, a Customer Relationship Management (CRM) system that facilitates monitoring of the commercial activity of Occident. It includes functionalities such as video calls and chat with customers. Additionally, it features a section with performance indicators, providing access to customer surveys conducted at various stages of the customer journey. Alerts are triggered when a customer responds to the survey with either a highly positive or very negative Net Promoter Score (NPS).

Regarding the professional development and training of intermediaries, the various companies within the Group offer intermediaries training programmes and tools to carry out their work professionally, with a customercentred approach that addresses specific needs, thereby enhancing their efficiency.

Training across the distribution network in Occident is focussed on developing the sales force and business growth. A special focus was also given to cross-selling, prevention of cancellations, customer loyalty and the use of new tools and systems.

Furthermore, efforts are being made to foster and strengthen mediators' knowledge of the responsible marketing and sale of products and services. In this regard, GCO has set a goal to provide training on transparency and sustainability in the marketing of products and services. This has already begun with specialised training for serving vulnerable groups, such as customers over 65 years old and those with disabilities.

GCO monitors and evaluates the effectiveness of all these actions and initiatives, monitoring their impact and performance to ensure that they achieve the expected results for workers in the value chain.

Respect for human rights (S2-4)

GCO regards the workers in its value chain as key allies in upholding the Group's Human Rights Policy and expects them to promote its values throughout their own value chains. Specifically, these stakeholders are required to take necessary measures to eliminate all forms of child labour, forced labour, and modern slavery. They must respect trade union freedom and the right to collective bargaining for their professionals, avoid discriminatory practices, pay wages in accordance with applicable laws, and provide a safe and healthy workplace through the adoption of occupational safety and health procedures.

GCO also promotes transparency in the procurement process, ensuring all participants receive reliable information aligned with respect for human rights, so business decisions are made without discrimination and with equal opportunities.

The human rights policy is aligned with the main internationally recognised instruments, such as the United Nations International Bill of Human Rights, the Convention on the Rights of the Child, the ILO Declaration on Fundamental Principles and Rights at Work, the Principles of the Global Compact, the Guiding Principles on Business and Human Rights, and the OECD Guidelines on Sustainability for Multinational Enterprises.

In 2024 no substantiated complaints of human rights violations involving workers in the value chain were reported via GCO's Whistleblowing Channel.

Customers and end-users (S4)

The main goal of GCO in its relationship with its more than 3.8 million customers* is to offer them competitive products and a quality service, based on personal and attentive advice and efficient management.

Customers*	2024
Occident	3,632,950
Personal	89 %
Companies	11 %
Retention rate	87.6 %
Atradius	84,293
Retention rate Spain	94.7 %
Retention rate Other	93.5 %
Mémora	62,207
Personal	23,913
Insurance companies	38,294

*As Occident and Atradius customers, policyholders are included, while for Mémora, the number of services provided is considered.

Strategy

Material impacts, risks and opportunities and their interaction with strategy and business model (SBM-3, S4-4, and MDR-A)

Within GCO's value chain, impacts related to customers can primarily affect the customers themselves and the internal processes for their support and management.

The potential negative impacts affecting customers and their associated risks for the Group are detailed below.

Negative impacts	Associated risk	Current financial impact	Risk management
Lack of transparency and distortion of information provided to customers about products and services.	Reputational loss and damage to the brand image stemming from a lack of transparency.	No significant impact has been identified during the period, nor any extraordinary effects that would require adjustments in the next period.	Implementation of strict transparency policies, ongoing training in strategic communication, and the preparation of crisis messages, along with early detection processes and impact evaluation.
Inability to address customer incidents, risking the ability to provide a solution.	Reputational risk that may result in claims associated with poor customer service and the loss of customers due to slow or inadequate impact management.	No significant impact has been identified during the period, nor any extraordinary effects that would require adjustments in the next period.	Strengthening internal customer service processes, allocating technological and human resources, and continuous training of personnel in handling complex situations. Average response times are monitored, and satisfaction surveys are conducted to identify areas for improvement.
Accidental or illicit destruction, loss, alteration, unauthorised disclosure, or access to customers' personal data Lack of transparency with customers regarding, among other things, the nature and use of the processed information	Regulatory risk arising from complaints, sanctions, and fines due to non-compliance with personal data protection regulations	No significant impact has been identified during the period, nor any extraordinary effects that would require adjustments in the next period.	Adoption of a regulatory framework that includes internal and external audits, data protection training, and impact assessments for handling personal information. Risk patterns are identified to optimise procedures

Security breaches leading to theft, leaks, or unauthorised access to sensitive/confidential customer information	Reputational risk arising from the theft, leakage, or unauthorised access to private or confidential company information, intellectual property, or financial data	No significant impact has been identified during the period, nor any extraordinary effects that would require adjustments in the next period.	Investments are made in cybersecurity technologies, impact response plans are implemented, and regular vulnerability assessments are conducted.
Interruption in the availability of digital or technology services	Risk of business continuity disruption due to potential threats and cyberattacks	No significant impact has been identified during the period, nor any extraordinary effects that would require adjustments in the next period.	Ongoing investment in cybersecurity, financial impact assessments of impacts, and security audits. Additionally, complementary controls such as compliance reviews and audits are established to minimise risks stemming from providers.

		The potential positive impacts affecting customers and their associated opportunities for the Group are detailed below.

Positive impacts	Associated opportunity	Current financial impact	Opportunity management
Clearer communication of products and services for better customer understanding	Increase in new customers and retention of existing ones	No significant impact has been identified during the period, nor any extraordinary effects that would require adjustments in the next period.	Reinforcement of continuous staff training to improve customer service. Promotion of a culture of excellence in service will help retain customers and attract new ones by providing an enhanced experience.
Immediate and early service that provides solutions to impacts occurring with customers	Better understanding of service bottlenecks that will help identify improvement opportunities	No significant impact has been identified during the period, nor any extraordinary effects that would require adjustments in the next period.	Implement advanced technologies that optimise claims management and enable greater traceability and faster resolutions.
Increased confidence among customers regarding the handling of private data, including its transfer to external service providers.	Improved trust and/or relationships with customers	No significant impact has been identified during the period, nor any extraordinary effects that would require adjustments in the next period.	Deploy a comprehensive plan to implement two-factor authentication in applications, ensuring a simple and smooth user experience. Awareness campaigns should highlight the benefits of this measure and encourage its adoption through accessible technical support and tutorials.
Enhanced sense of security among customers due to improved protection of devices, networks, applications, and systems affecting them	Strengthened trust and/or improved relationships with customers, along with greater organisational resilience to ensure business continuity in the face of potential threats and cyberattacks	No significant impact has been identified during the period, nor any extraordinary effects that would require adjustments in the next period.	Implement advanced security technologies, such as intrusion detection systems and regular audits, along with proactive software updates. Ongoing employee training in secure practices is key to strengthening internal resilience.

Index				Sustainability Report
01. General information	03. Social information	05. Business information	07. Annex I - Taxonomy	09. Annex III - ESRS Index
02. Environmental information 04. Governance information 06. Contributing to society				08. Annex II - Law 11/2018 10. External assurance report

Management of impacts, risks, and opportunities related to customers

Policies related to customers (S4-1 and MDR-P)

The principles governing GCO's customer management are outlined in several policies, including:

• - Sustainability policy. In relation to customers, GCO's Sustainability Policy establishes the commitment to offer them competitive products and a quality service, based on professional, personal, transparent and integral advice.
• Human Rights Policy: in which GCO is committed to protecting and respecting the human rights of its clients, ensuring relationships based on honesty, trust, guaranteeing fair treatment and no discrimination. In addition, it promotes equal access to its products and services, eliminating barriers and adapting its processes to offer quality care to all clients, ensuring that they can make informed and conscious decisions.
• Policy on the Protection of Personal Data and Use of ICT Resources. Approved by the Personal Data Protection Committee and the Group's Board of Directors, aims to ensure the protection of individuals' personal data, guaranteeing their right to privacy and controlling the appropriate use of the Group's technological resources, establishing the rules for their responsible and safe use.
• Data Privacy Policy and Framework for the Protection of Personal Data and Information Security: set out the commitments of all Group entities in relation to the protection and processing of customers' personal data.
• Conflict of interest policy: Approved by the Group's Board of Directors, its purpose is to ensure that any conflict of interest that may arise in the distribution of insurance-based investment products is managed fairly and in accordance with the principles of integrity, honesty, impartiality, transparency, confidentiality, professionalism and social responsibility. To this end, various measures are established to prevent and manage these conflicts of interest, and in the event that these measures are not sufficient, the client will be informed in a clear and detailed manner about the existence of the conflict, the actions taken to mitigate it and the proposed solution.

More detailed information on these policies is included throughout the various chapters of this Sustainability Report.

Processes for collaborating with and handling customer impacts (S4-2, S4-3, S4-4, and MDR-A)

Customer experience

GCO is committed to giving its customers simplified and clear information, and to resolving any queries they may have about the content of its policies and services, or in the event of any impact.

This commitment in Atradius is embodied in the Customer Service Charter and, in Occident, in its adherence to UNESPA's Guide to Good Practices for Transparency in the Marketing of Insurance.

Similarly, both the professionals who provide service to customers during a claim and the contact centre staff have customer experience guidelines that lay down clear protocols on how to relate and interact with them, in order to offer the highest level of service during the exercise of their activity.

The main department responsible for ensuring collaboration with customers is the Operations General Management. However, other departments also engage with customers, such as the Customer Ombudsperson, responsible for handling complaints and claims, the Marketing and Communications Directorate, which manages communications with customers (website, email, social media, etc.), and the Commercial Directorate, which supports the mediation network to resolve any issues customers may encounter. In Mémora, the Quality Directorate of Mémora oversees the management of negative impacts related to the services provided.

GCO works on a daily basis to offer excellent service, enhance products and, in short, provide the customer with a differential experience. To this end, the Group conducts various analyses that collect the Voice of the Customer to find out their degree of satisfaction and recommendation, their opinion and needs, as well as their image of the brand.

• Contact center: the Group offers personalised customer service through both telephone and digital channels, including WhatsApp, the website, and the customer app chat. This multichannel experience allows customers to contact the company via their preferred medium. Additionally, Occident has created a dedicated channel for senior customers to streamline and enhance their service experience. To do so, operators have been specifically trained in how to adequately assist people over 65 years of age.
• NPS (Net Promoter Score): is the indicator for measuring the degree of customer loyalty. Surveys are conducted at various touchpoints with the company, such as post-purchase, post-claim, prerenewal, and post-renewal. For Mémora business, a survey is also conducted post-service. Customers who provide negative survey responses are subsequently contacted to implement necessary process improvements and prevent similar issues in the future.

Occident	43.5%
Mémora	80.9%

• Customer Journey: its goal is to continuously review the main interactions of customers with the company, identifying the key points of value contribution in order to design measures geared towards enhancing their experience.

Index				Sustainability Report
01. General information	03. Social information	05. Business information	07. Annex I - Taxonomy	09. Annex III - ESRS Index
02. Environmental information 04. Governance information 06. Contributing to society				08. Annex II - Law 11/2018 10. External assurance report

• Focus groups: in 2024, GCO conducted 30 focus groups, engaging with over 200 customers to better understand their needs, identify any issues they may have encountered with Occident products and services, and pinpoint products and channels that strengthen their connection with the Group. These collaborative processes have enabled GCO to identify strengths and weaknesses in its customer relationship model, assess customers' level of digitisation, and understand their engagement with insurance products.

Also in 2024, Atradius has piloted two projects (in Spain and Germany), holding conversations with several customers to understand their ESG-related needs and offer new value-driven solutions.

• Whistleblowing channel: GCO also provides a confidential whistleblowing channel for any customer or interested party to report needs, impacts, or potentially irregular activities that may breach the Group's Code of Ethics. In 2024, no cases of human rights violations were identified.

Additional information on the Whistleblowing Channel is included in the Business Conduct chapter (G1) of this Sustainability Report.

• Social Media: customers can interact with the Group's entities through its various social media profiles. If a customer raises an issue, it is referred to a specialised team for resolution.

• Blogs: through the Group's various company blogs, GCO provides practical information and useful advice to customers and other interested parties. These resources help improve quality of life, protect loved ones and material assets, and maximise the benefits of their insurance coverage. They also address customer questions about the company's products and provide insights into market trends.
• Agents and intermediaries: customers can communicate their needs or report issues to the company via its network of mediators. These mediators maintain direct contact with customers and are specifically trained to provide specialised support services.
• NextLives Platform: is a platform used by Mémora to facilitate communication and connection with families requesting funeral services. Through NextLives, Mémora allows families to share photos, videos and messages, creating a digital space to honor and remember their loved ones. In addition, the platform offers tools for families to interact, leave comments and participate in personalized surveys.

Finally, as part of the Group's commitment to ongoing a continuous dialogue with customers, Occident informs its individual customers of its environmental contribution through the use of sustainable practices in managing home claims and trains industrial insurance customers in risk prevention and, on the other hand, trains industrial insurance customers in risk prevention and management, including measures for preventing climate risks.

The Group regularly monitors the various channels to ensure their efficiency and effectiveness.

Metrics and targets related to customers (MDR-M and MDR-T)

GCO monitors and manages customer-related impacts across all its operational entities through a complaints and claims system in the Group's operating entities.

Complaints and claims system (S4-4)

Good management of customer complaints and claims is a basic element in the quality of service. The first step in resolving them is to offer the customer immediate attention from whoever is directly in contact with them.

Occident y Atradius

In Spain, GCO has regulations for defending customers adapted to the requirements of Order ECO/734/2004 of 11 March on the customer service departments and services of financial institutions and the commitments assumed by the insurance sector through the guidelines on good practices for internal complaint resolution promoted by Unespa. This regulation is also applicable to the Group's other financial customers (participants in investment and pension funds, members of GCO's EPSV and customers of Occident Hipotecaria). Outside Spain, given the singularity of its business, Atradius has its own process for dealing with complaints and claims based on internal procedures and the regulations present in each country.

Index				Sustainability Report
01. General information	03. Social information	05. Business information	07. Annex I - Taxonomy	09. Annex III - ESRS Index
02. Environmental information 04. Governance information 06. Contributing to society				08. Annex II - Law 11/2018 10. External assurance report

Process for responding to complaints and claims:

Different channels accessible for customers to submit complaints and claims through written forms, the Customer Service Department mailbox, contact centre, regulator mailbox, telephone, email or in the specific sections of the website to receive complaints, claims or queries.

Designation of managers to assess the causes of complaints and claims and coordinate their resolution and identify whether it is a requirement of the regulator.

Informing customers and users on the status of complaints and how they are resolved.

Supervision of complaints and claims by the designated delegate responsible for managing the complaint or claim. In Spain, an inspection is also conducted by the Customer Ombudsperson.

Annual recording and measurement of the number of complaints received for statistical purposes and achievement of goals.

Pursuant to the above procedure, the details of complaints and claims of Occident and Atradius are presented:

Claims and complaints from Occident y Atradius	2024
In Spain and Andorra	6,624
Admitted for processing	5,220
Resolved	4,788
Open	432
Other countries	363
Admitted for processing	363
Resolved	357
Open	6

In Spain, this includes data from Occident in Spain and Andorra and from Atradius in Spain. In this context, complaints are deemed to be those submitted by users of financial services who, in order to obtain the restitution of their interests or rights, submit specific facts referring to actions and omissions of the Company or which represent a detriment to their interests or rights through breach of contracts, of transparency and customer protection regulations or of good financial practices and usages. Complaints are also deemed to be those referring to the functioning of the financial services provided to users by the entities and presented due to delays, type of attention or any other type of shortcoming.

In all other countries, complaints and claims from Atradius Business outside Spain are included, which are deemed to be the expression of dissatisfaction due to an error or delay in the provision of the service or the provision of a service in an unsatisfactory or substandard manner.

Mémora

All Mémora business centres are certified by the ISO 9001 Quality Management and UNE EN 15017 Funeral Services standards, which require a procedure to be in place for dealing with customer complaints. Annual audits conducted by AENOR Internacional and Bureau Veritas verify compliance with this standard.

Process for responding to complaints and claims:

Different channels accessible to customers to report their complaints and claims through the contact center, telephone, email, website or in the work centres.

Designation of managers to investigate and analyse the suitability of complaints and claims.

Response to customers on the status of complaints and how they are resolved

Annual recording and measurement of the number of complaints received for statistical purposes and achievement of goals.

Pursuant to the above procedure, the details of complaints and claims of Mémora are presented:

Claims and complaints from Mémora	2024
Complaints and claims	305
Admitted for processing	305
Resolved	302
Pending	3

Targets related to customers (S4-5 and MDR-T)

GCO keeps customers at the core of its strategy. This is why the Group aims to better understand its customers by developing tools to facilitate commercial work, evolving the value proposition to adapt it to the needs of different customer profiles, and developing distinctive service capabilities to optimise their experience.

As part of GCO's new 2025–2027 Strategic Plan, driving the "customer vision" is one of the Group's main projects, with specific initiatives established to improve indicators such as the retention rate and NPS, among others.

04. Governance information (ESRS G)

Business conduct (G1)

GCO has procedures and a framework in place aimed at ensuring the adequacy and observance of its obligations, both internal and external, to ensure appropriate business conduct.

Verification of compliance

Operating in a highly regulated sector means that a compliance verification function is crucial. This essential function and second line of defence is dedicated to ensuring compliance with the obligations that affect the organisation, including both mandatory and voluntary regulations, assessing the potential impact of any changes in the legal environment on the Group's operations and the identification and assessment of compliance risk. It also includes advising the Group's Board of Directors and the other individual entities that form it on compliance with legal, regulatory, and internal policy requirements.

The compliance verification function is managed by GCO's Compliance Verification Committee, the main function of which is to coordinate, supervise and establish common criteria for all the Group's regulated entities with regard to the application of both mandatory and voluntary regulations.

It is also entrusted with ensuring compliance with the internal regulations developed regarding the system for the prevention and detection of crimes that may be committed by the Group's legal entities. Atradius has its own structure comprising both the compliance function at entity level and local compliance duties. It supports the Company in complying with the applicable laws, rules and regulations.

Strategy

Material impacts, risks and opportunities and their interaction with strategy and business model (SBM-3 and MDR-A)

Within GCO's value chain, impacts related to business conduct can mainly affect internal operations, suppliers, and associates.

The potential negative impacts affecting business conduct and their associated risks for the Group are detailed below.

Negative impacts	Associated risk	Current financial impact	Risk management
Difficulty accessing complaint or whistleblowing mechanisms by stakeholders	Reputational risks due to ineffective responses to compliance risks, regulatory and normative changes, and increased public scrutiny, which could result in a loss of brand value.	No significant impact has been identified during the period, nor any extraordinary effects that would require adjustments in the next period.	Compliance with legislation, supported by the compliance department and the controls in place to manage, monitor, and verify compliance
Negative consequences for society due to possible illegal or unethical practices (money laundering, corruption, bribery, greenwashing, etc.)	Regulatory risk of engaging in illegal practices or violations of the Group's code of conduct, such as money laundering, terrorist financing, or greenwashing, leading to fines or sanctions.	No significant impact has been identified during the period, nor any extraordinary effects that would require adjustments in the next period.	Implementation of specific policies and procedures to ensure regulatory compliance and strengthen ongoing employee training in best practices. Internal and external audits are conducted, periodic reviews of controls are carried out, and suspicious transactions are monitored.
Negative impact on society due to the Group's failure to contribute to public resources due to non-compliance with tax obligations	Regulatory risk in the countries where the company operates due to non-compliance with tax obligations.	No significant impact has been identified during the period, nor any extraordinary effects that would require adjustments in the next period.	Implementation of a solid internal regulatory framework, such as the Corporate Tax Policy and specific manuals, complemented by tools to automate and reconcile accounting and tax information, intermediate internal controls, periodic reviews of financial reports and tax questionnaires, and consultation with external experts in complex cases.

Loss of company value for shareholders or investors due to unethical business practices by the Group's governing bodies	Risk of a decrease in share value and possible divestment by the Group's shareholders due to unethical or illegal practices	No significant impact has been identified during the period, nor any extraordinary effects that would require adjustments in the next period.	Implementation of internal controls, ongoing training for employees and managers on ethics, fraud, and corruption standards, and periodic internal audits that assess compliance with the Group's Code of Ethics.
Decision-making driven or biased by a lack of adequate diversity, independence, or experience among the members of the Group's governing bodies, which negatively impacts stakeholders	Reputational risk associated with failing to meet stakeholder expectations regarding what constitutes a responsible and diverse governing body	No significant impact has been identified during the period, nor any extraordinary effects that would require adjustments in the next period.	Strict compliance with legislation on responsibility and diversity, constant monitoring of stakeholder expectations, and evaluation of how these align with the organization's practices, ensuring proactive and transparent communication.
Delay in payment to suppliers and associates	Reputational risk resulting in limited access to suppliers and associates due to payment delays	No significant impact has been identified during the period, nor any extraordinary effects that would require adjustments in the next period.	Continuous improvement of payment systems and supplier relationship management ensures the prevention and containment of reputational risks, fostering compliance and internal responsibility.

The potential positive impacts affecting business conduct and their associated risks for the Group are detailed below.

Positive impacts	Associated opportunity	Current financial impact	Opportunity management
Building trust with regulators and authorities, customers, and employees through compliance with rules and standards of conduct	Promotion of an ethical culture within the company to prevent and minimise behavioural risks or unethical practices among employees	No significant impact has been identified during the period, nor any extraordinary effects that would require adjustments in the next period.	Strengthening the integration of ESG criteria into the corporate strategy through the development of internal policies aligned with legal regulations and the implementation of voluntary initiatives that reinforce ethical and sustainability values.
Building trust with regulators, authorities, and society in general through compliance with tax obligations	Improving the company's reputation and sustainability	No significant impact has been identified during the period, nor any extraordinary effects that would require adjustments in the next period.	Prioritising the continuous strengthening of tax compliance through the implementation of rigorous and updated controls to ensure conformity with applicable regulations.
Creating value and greater reliability for shareholders and investors through responsible decision-making by governing bodies	ratings/indices	No significant impact has been identified during the period, nor any extraordinary effects that would require adjustments in the next period.	Establishing regular processes for updating sustainability information and promoting proactive and transparent communication about improvements implemented across the value chain.

Impacts, risks and opportunities related to management of the relationship with supplier are included in the chapter Workers in the value chain.

Index				Sustainability Report
01. General information	03. Social information	05. Business information	07. Annex I - Taxonomy	09. Annex III - ESRS Index
02. Environmental information				04. Governance information 06. Contributing to society 08. Annex II - Law 11/2018 10. External assurance report

Management of impacts, risks, and opportunities related to business conduct

Business conduct policies (G1-1 and MDR-P)

Code of Ethics

The Group's Code of Ethics, formulated and approved by the Board of Directors, is the document that lays down the guidelines that must govern the ethical behaviour of the directors, employees, agents and associates of GCO in their daily performance with regard to their relations and interactions with all stakeholders. It also includes commitments made regarding human rights, sustainability, good governance, professional development, regulatory compliance, and equal opportunities.

The Code of Ethics is reviewed and approved by GCO's Board of Directors annually and is communicated to all employees, agents, and associates through the intranet of each entity in the Group, with mandatory reading and acceptance required for all individuals working within it. This code can be viewed on GCO's corporate website: www.gco.com.

Both Atradius and Mémora business, given the uniqueness of their structure and business, currently have their own code of conduct, which observes the guidelines defined in the Group's Code of Ethics.

Whistleblowing channel

The Group has has its own legitimate and transparent whistleblowing channel, accessible via the Group's website, 24 hours a day, 7 days a week, enabling employees and any interested third party to report, confidentially and anonymously, queries and/or possible breaches of the Code of Ethics, of any other internal regulations or policies of the Group, as well as actions or omissions that may result in a criminally punishable irregularity or the manipulation and/or falsification of financial data.

Additionally, the document "Whistleblowing and Fraud Reporting Channel" regulates the internal information system and the protection of whistleblowers, establishes internal channels for receiving communications, processes investigation files for detected situations, and provides appropriate protection to whistleblowers against retaliation.

Once the communication is received, it is managed by Corporate Internal Audit as established in the "Whistleblowing and Fraud Reporting Channel" and its regulatory development "Procedure and Methodology for the Analysis of Irregularities and Internal Fraud at GCO," which is adapted to the provisions of Law 2/2023, of February 20, regulating the protection of individuals reporting regulatory violations and the fight against corruption.

Furthermore, the Corporate Internal Audit department also ensures the proper functioning of this system by proactively auditing different processes within the Group's companies.

In 2024, the Group has received 188 communications from employees through existing whistleblower channels, of which 52 were not admitted for processing. Of the 136 remaining communications, 126 were resolved in 2024 (96 substantiated cases and 30 not substantiated) and 10 are in the process of resolution as at 31 de diciembre de 2024.

Internal Conduct Regulation on market behaviour

This code of conduct regulates the actions of the administrative bodies, management, employees, and representatives of Grupo Catalana Occidente S.A. It includes rules regarding the handling and use of privileged information, market abuse situations, and discretionary operations in own shares.

Fight against corruption and bribery (G1-3 and G1-4)

In order to prevent corruption and bribery, the Group undertakes to perform all its activities in accordance with the legislation in force in all scopes of action and in all countries in which it operates. To do this, it has a Crime Prevention Model that includes the measures taken to prevent corruption and bribery. As part of this model, the Group has a criminal risk map that is reviewed annually, with controls to mitigate compliance risks.

Additionally, the Group has internal regulations that develop the Code of Ethics: the Protocol of the person responsible for criminal compliance, the whistleblowing channel for irregularities and fraud, the procedure and methodology for analysing irregularities and internal fraud, the protocol for detecting conflicts of interest with public sector entities, the protocol for action when receiving judicial documentation, the protocol for action in the event of receiving an inspection or a request for information, and the manual of procedures for selecting suppliers. These documents are used to structure the Criminal Prevention Model and the mechanisms for breaching the Group's Code of Ethics.

The Group also has anti-corruption procedures in place to help identify possible malicious acts or omissions in the taking out of insurance, in the reporting of claims or in the substantiation of damages, which are intended for the purpose of improper gain, money laundering or terrorist financing or unjust enrichment. Additionally, these internal procedures establish how to act in cases involving investigations. The Corporate Internal Audit function is responsible for conducting investigations into identified cases of corruption and bribery that have been reported through the whistleblowing channels. The results (substantiated cases) are subsequently reported to the Audit Committee, which acts as an independent body in the process.

In 2024, no cases of corruption or bribery have been detected in the Group.

In order to improve understanding of criminal risks and the actions and conduct expected of employees, the Group has training courses on the prevention of criminal liability of legal persons and on market abuse and insider information (course on the Group's code of conduct).

The Group provides complementary anti-corruption and anti-bribery training to all individuals in functions exposed to corruption and bribery risk, with 7% having completed it in 2024. The following are identified as high-risk functions for corruption and bribery, among others: the governing bodies of Grupo Catalana Occidente, S.A. and its individual entities, members of the Management Committee of the Group and its individual entities, as well as the heads of essential functions of the Group or individual entities, and staff directly involved in insurance distribution activities. All functions at risk of corruption and bribery are included in GCO's Fitness and Reputability Policy.

Finally, GCO has not made any contributions to political parties in the current year.

Prevention of money laundering and the financing of terrorism

The Group has a manual for the prevention of money laundering and the financing of terrorism which outlines, among other topics, all internal control measures implemented by the Group's entities subject to the regulations on the prevention of money laundering and the financing of terrorism. These measures are analysed annually by an external expert who, in his latest report, considered that the Group has a satisfactory system for the prevention of money laundering and terrorist financing. The Board of Directors assesses this report together with proposals for actions to remedy the shortcomings identified and implement improvements.

As part of the prevention system and with a view to fostering a culture of compliance within the organisation, the Group has implemented a training plan on the prevention of money laundering and the financing of terrorism.

Furthermore, the Group has a Corporate Governance Framework on the prevention of money laundering and terrorist financing published on the corporate website with the aim of fostering transparency and contributing to stakeholder confidence.

	2024
No. of employees who have undergone anti-corruption training	2,114
% of total employees	23 %

Personal data protection and cybersecurity

The Group is committed to guaranteeing the confidence of its stakeholders with regard to the protection, processing and privacy of personal data. In this regard, the Privacy and Personal Data Protection Policies, and the use of ICT Resources, are intended to establish the Group's goals in this field and to lay down a working framework to guarantee and improve such protection.

Moreover, the Group has a Corporate Governance Framework on personal data protection and information security available on the corporate website which outlines the commitments and principles being promoted and the organisational structure in this area. As a result, GCO is committed to processing the personal data of individuals in accordance with the following principles:

• Lawfulness, fairness and transparency in the processing of the personal data of data subjects, obtaining such data by lawful and transparent methods, clearly informing them of their subsequent processing, and with the explicit consent of the data subject where necessary.
• Limitation of the purpose: personal data will be gathered and processed for specific, explicit and legitimate purposes, pursuant to the purpose and aim informed to the data subject at the time of obtaining the data.
• Data minimisation: the processing of personal data will be adequate, relevant and limited to what is strictly necessary for the purposes for which they were collected.
• Accuracy: the personal data processed must be accurate and kept up to date, and inaccurate data must be deleted or rectified.
• Limitation of the retention period: the personal data undergoing processing will be kept for the time necessary for the purposes for which they were collected.
• Integrity and confidentiality: personal data will be processed with appropriate security and protection against unauthorised or unlawful processing, loss or destruction.
• Proactive responsibility and accountability: not only should compliance with the above principles relating to the processing of their personal data be ensured, but this must also be susceptible to being proven.

In order to guarantee the security and reliability of the information, the Group has internal control procedures over the information systems and the Corporate Information Security Policy, which is brought into line with the information systems security guidelines defined under ISO/IEC 27001 and NIST standards, which lay down an internationally recognised security reference framework.

Similarly, with the aim of ensuring compliance with the applicable regulations on personal data protection, the Group has a data protection officer (certified in accordance with the DPO Certification Scheme of the Spanish Data Protection Agency —AEPD). It also has a Personal Data Protection Committee, as the executive body responsible for applying the regulations on personal data protection and the use of information and communication technology resources.

In the case of Atradius, it also has a Personal Data Protection Advisory Committee, which comprises its data protection officer and the directors of various business units and, in each of the countries in which it does business, there is a representative to ensure compliance with the applicable personal data protection regulations in those regions.

Furthermore, given that potential cyber-attacks are considered one of the main risks in the sector, the Group also has a Chief Information Security Officer with the duties of coordinating and controlling the technical security measures of the Group's information systems required by the General Data Protection Regulation. Similarly, Atradius has its own Chief Information Security Officer.

In ejercicio 2024, the Group did not receive any substantiated complaints related to customer privacy violations received from third parties. However, it has received 3 regulatory requests, all of which were dismissed by the AEPD. Moreover, no cases of leaks, theft or loss of customer data have been identified.

Similarly, in 2024 4 incidents with a cybersecurity impact occurred, and 1 security breach affecting personal data, all of them with a low impact..

In the event of a cybersecurity attack on GCO, there is a Business Continuity Policy and a Contingency Plan that outlines the actions to be taken by the Group in the worst-case scenario. Additionally, GCO has an impact management plan that defines the actions to be taken based on the severity of the impact. Employees also undergo mandatory training to prevent attacks and have mechanisms to report a cybersecurity impact or suspicion of one.

Finally, the Corporate Internal Audit Multiyear Plan includes conducting internal and external audits in GCO's technological environment, both to verify compliance with regulations and to strengthen Information Technology (IT) and cybersecurity. The results of these audits are submitted to the Audit Committee.

In 2024, notably, the audit of the Digital Operational Resilience Regulation (DORA), as established by Regulation (EU) 2022/2554 of the European Parliament and Council on December 14, 2022, concerning the digital operational resilience of the financial sector, and the completion of the 2023-24 cybersecurity audit through an annual Red Team exercise, which aims to assess the design and effectiveness of key operational procedures and internal controls in cybersecurity, such as access controls to the Group's information.

Additionally, the IT department, together with external collaborators, conducts periodic audits on specific areas to identify potential errors or inefficiencies in systems.

Apart from these audits, strict measures for data encryption and data protection are implemented for data in transit, sensitive data (at least those identified by the GDPR), and data at rest stored on servers and computers.

Fiscal transparency

The Group has a corporate tax policy, the purpose of which is to describe the strategy for complying with its tax obligations in all countries and territories in which it conducts business, as well as to maintain an appropriate relationship with the relevant tax administrations. This policy is reviewed every year by the Board of Directors of the Company and was last updated in January 2024.

Prior to the drawing up of the annual accounts and the filing of the corporation tax return, the person responsible for tax matters in the Group informs the Board of Directors about the tax-related strategies deployed during the financial year and the degree of compliance with the policy.

The Group promotes transparent, clear and responsible communication of its main financial figures, by providing its different stakeholders with information concerning the payment of all taxes that are applicable in each of the jurisdictions in which it is present.

Information on profits obtained and taxes paid by country, in accordance with the requirements of Law 11/2018, can be found in Annex II of this Sustainability Report.

More information on the Group's fiscal performance is available in notes 3.h, 11.c and 11.f of GCO's Consolidated Annual Accounts.

Supplier payment practices (G1-6)

The average payment period to suppliers of the Group's companies is 22,1 days, with no outstanding payments exceeding the legal deferral period (30 days unless otherwise agreed by the parties). For more information, see note 21.c in the Notes to the report.

In the case of associates, Group companies pay amounts to associates on a daily basis, where the average payment period is 1 day. Furthermore, associates have at their disposal an application where they can consult and reconcile payments of orders and invoices issued to Group entities. This prevents the associate from having to communicate their information requirements to different company departments

The Group has no pending legal proceedings due to late payments to suppliers.

05.

05. Business information

Responsible management of products and services Strategy

100% of GCO's investment funds and unit linked products, and 99% of GCO's pension plans/EPSVs have an Article 8 rating under the SFDR.

GCO understands that developing innovative and sustainable solutions sensitive to changing consumption patterns and fostering the implementation of new technologies and energy sources represents a competitive advantage and the opportunity to better adapt to the changing needs of its customers. As such, it offers solutions that incorporate customer preferences and contribute to promoting sustainability.

Occident and Atradius

Responsible products		2024
	Policies	6,993
Sustainable investment funds (Article 8 SFDR)	Assets under management	1,005,799,206
	Policies	58,694
Sustainable pension plans and EPSVs (Article 8 of the SFDR)	Assets under management	805,739,552
	Policies	23,322
Other products with sustainable connotations*	Absolute	75,950,864

*Includes insurance for: personal mobility, cyber risks, environmental risks, electric vehicles, senior health and wellness, and agriculture.

Financial products that promote environmental and/or social characteristics (Article 8 of SFDR)

GCO has adapted its range of investment funds, unitlinked products, and pension funds/EPSVs to Article 8 of the Disclosure Regulation (SFDR). In doing so, these products explicitly incorporate environmental and/or social considerations into their management, beyond merely integrating sustainability risks. Information is given in both the pre-contractual documentation for the product and the regular reports on how these sustainability characteristics are integrated with the aim of making it easier for customers to identify these products.

Personal mobility insurance

In recent years, due to the increased concern about the environment and seeking sustainable solutions, the big cities have promoted changes to reduce the use of private vehicles. These changes, coupled with population growth, the high density of cities and increased travel, have led to a paradigm shift in transport and the emergence of a new mobility.

"Personal Mobility" is a comprehensive mobility insurance product that ensures the user has all risks covered in their journeys and regardless of the method of transport used (such as rental and sharing vehicles, scooters, city bikes, taxis, vehicles for hire or public transport). With that, the Group is helping to mitigate the environmental and social problems associated with urban mobility, focussing on sustainable mobility.

Cyber risk insurance

The digital transformation poses new problems and needs that affect our customers. Both companies and individuals are increasingly exposed to a higher risk of cyberattacks that can jeopardise important aspects such as: Data storage and processing in an ethical and secure manner, physical and reputational integrity, harassment by social networks, etc. GCO responds to these needs by offering its customers protection against the risks involved in operating in an increasingly digital era. To this end, the Group has a cyber-insurance for companies that provides, among other aspects, protection against cyber-attacks, preventive services and professional advice. In addition, it has a cyber insurance policy for individuals that provides a package of coverage options and services to meet the needs of our individual customers. This product for individuals was made available for sale in 2022.

Environmental risk insurance

The Group participates, along with other companies in the sector, in the environmental risk pool. This pool is an effective incentive for the prevention of such risks, as, individually in the Spanish market, there is a lack of development of these types of insurance due to the high specialisation required. The coverages given through environmental liability insurances enable to deal with the costs arising from the necessary repair of the environment that has been damaged due to a contamination event. In its environmental insurance offer, the Group provides this cover to companies, boats, residential buildings and single-family dwellings.

Index				Sustainability Report
01. General information	03. Social information	05. Business information	07. Annex I - Taxonomy	09. Annex III - ESRS Index
02. Environmental information 04. Governance information 06. Contributing to society 08. Annex II - Law 11/2018 10. External assurance report

Electric vehicle insurance

The transformation of carbon-based economies for new paradigms of sustainability, where energy efficiency and environmental protection play an essential role, is already one of the world's main priorities. Organisations that gradually adapt their offer to cover this energy transition will open new markets and will be better prepared for the future.

The car insurance offer includes a specific insurance package for electric and plug-in hybrid vehicles, which are committed to sustainability by mitigating the carbon footprint.

ESG Solutions in Atradius

Atradius aims to help its customers to move forward with their ESG commitments by first conducting a sustainability needs assessment. Based on the needs identified, Atradius launched two pilot solutions in 2024, in Spain and Germany.

In Spain, Atradius offered an initial group of more than 150 customers a platform to measure, reduce, and certify their carbon footprint, as well as establish action plans to achieve this. In Germany, a software tool containing useful sustainability information has been offered to 300 customers to support them in developing corporate sustainability reports and assisting them in their transition to a more sustainable company.

Mémora

Sustainable coffins

With respect for biodiversity and forest conservation, Mémora is committed to using ECO-certified coffins, ensuring that the raw material for these products is sourced from controlled felling and subsequent reforestation.

	2024
Coffins with ECO certificate supplied	40,277
% of eco-certified coffins out of the total	70.2 %
coffins supplied

Oxo-biodegradable shrouds

Oxo-biodegradable shrouds are used in funeral services. They are known for their ability to decompose in any environment, as long as oxygen is present, even in the absence of water, thus reducing the environmental impact.

Financial inclusion products

In the insurance sector, the basis of financial inclusion is to ensure access to protection against certain risks for vulnerable groups.

These groups include people over 65 years of age, whose public pension is sometimes insufficient to cover their regular expenses, and rural producers, who are more vulnerable to various types of risks, with low population density and reduced income levels. Occident is aware of this and has products adapted to suit the needs of these groups:

• Senior Well-being Health is a medical insurance for the elderly designed to meet all the health needs that arise at this stage of life at more affordable prices. It offers, among other services, preferential care lines, home care medical staff, home care staff (cleaning, personal assistance, purchase of medicines, etc.) and a medical directory adapted to suit their needs.
• Lifetime reverse mortgage is a product for retired people that lets them liquidate their property wealth and receive a monthly annuity for life, while retaining the use and ownership of the home.
• Agricultural Insurance guarantees the income and continuity of agricultural and livestock farms, which form part of the fundamental activity for the rural environment, covering the damage they may suffer in the event of fire, loss of crops, animal disease, adverse weather, etc.

Ecofunerals

GCO's funeral companies offer ecological funeral services, in order to reduce the impact of the funeral process on nature. The purpose of this product is to respond to the growing social interest in sustainability and respect for the environment.

Ecofunerals cut greenhouse gas emissions by more than 30% and reduce the emission of dioxins that are toxic to health.

This product is also committed to using environmentally managed mortuaries, using flowers from organic crops, memorials made from FSC or recycled paper, and transporting the deceased in electric or hybrid vehicles.

Financially inclusive funeral services

GCO's funeral companies support families without resources so that they can provide a funeral service free of charge, or on a subsidised basis, through the protocol of agreements with municipal and regional social services. This contributes to meeting a real need and not excluding any family from funeral services.

Index				Sustainability Report
01. General information	03. Social information	05. Business information	07. Annex I - Taxonomy	09. Annex III - ESRS Index
02. Environmental information 04. Governance information 06. Contributing to society 08. Annex II - Law 11/2018 10. External assurance report

Management of impacts, risks, and opportunities related to responsible product and service management (MDR-A)

Within GCO's value chain, impacts related to the responsible management of products and services can mainly affect internal operations, customers, and associates.

The potential negative impacts of responsible product and service management and their associated risks for the Group are detailed below.

Negative impacts	Associated risk	Current financial impact	Risk management
Not offering products and services with sustainable characteristics for customers	Risk of losing customers for not offering sustainable products or services	No significant impact has been identified during the period, nor any extraordinary effects that would require adjustments in the next period.	The Group continuously analyses social and market demands to anticipate emerging trends and needs in sustainability. Integration of ESG criteria into product design, collaboration with strategic partners, and team training ensure an innovative offering aligned with market expectations.
Negative environmental impact from not providing services sustainably	Risk of increasing the Group's carbon footprint by not providing services sustainably	No significant impact has been identified during the period, nor any extraordinary effects that would require adjustments in the next period.	Continuous monitoring of new technologies and evaluating the network of associates. Additionally, the adoption of innovative solutions is encouraged to optimise processes, minimise losses, protect reputation, and ensure operational sustainability.
Not supporting the transition by continuing to underwrite carbon intensive activities	Reputational risk due to not supporting the transition	No significant impact has been identified during the period, nor any extraordinary effects that would require adjustments in the next period.	Constant monitoring of media and social networks to ensure a swift and coordinated response to reputational crises

The potential positive impacts of responsible product and service management and their associated opportunities for the Group are detailed below.

Positive impacts	Associated opportunity	Current financial impact	Opportunity management
New product and service offerings with sustainable features for customers (investment funds under Article 8 of the SFDR, credit insurance with a stronger ESG focus, personal mobility insurance, insurance for electric vehicles, etc.)	Development of new products and services, or adaptation of existing ones, to meet emerging ESG needs or preferences, resulting in increased customer attraction	No significant impact has been identified during the period, nor any extraordinary effects that would require adjustments in the next period.	Development and adaptation of products and services focused on climate resilience, adjusting existing coverage or creating new solutions to respond to emerging needs.

Supporting customers with a strong ESG focus to progress together in line with shared climate neutrality commitments (customer engagement)	Strengthening customer relationships and improving retention by offering advice and support during their ESG transition, while expanding the customer base seeking stronger ESG commitments	No significant impact has been identified during the period, nor any extraordinary effects that would require adjustments in the next period.	A proactive approach to customer relations, enabling the identification of concerns and the provision of tailored advice to meet their needs, especially for ESG-related products.
Positive environmental impact from the company's decarbonisation through sustainable service delivery	Reduction of the Group's environmental footprint as it aligns with climate neutrality commitments	No significant impact has been identified during the period, nor any extraordinary effects that would require adjustments in the next period.	Alignment with climate neutrality commitments through the continuous development of innovative repair methods, promotion of less polluting transport among associates, and optimisation of intervention zones to minimise travel.

Policies related to the responsible management of products and services (MDR-P)

The Group has policies that regulate the process of control and governance of products, both life and non-life insurance commercialised through Occident. These policies, approved by the Group's Board of Directors, define the general management principles and establish the most relevant aspects of product governance, ensuring that decisions and processes are consistent and aligned with the company's objectives and customer expectations. In addition, the policies described the process of control and oversight of the products commercialised, which ensures continuous monitoring of the performance and potential risks of the products offered. On the other hand, Atradius has Technical Product Standards that define the governance of the products it offers.

Parameters and goals related to responsible product and service management (MDR-M y MDR-T)

As a signatory to the Principles for Sustainable Insurance (PSI) developed by the United Nations Environment Programme Finance Initiative (UNEPFI), GCO is committed to integrating environmental, social and governance (ESG) issues into its decision-making processes.

Regarding GCO's products and services, the commitment is reflected in an insurance offering that helps customers address new environmental and social challenges, such as reducing greenhouse gas emissions, financial inclusion, and sustainable investment. Likewise, Mémora offers alternatives that help to conserve natural resources and preserve ecosystems, such as sustainable coffins and oxo-biodegradable shrouds.

All the information on GCO's indicators regarding its responsible product and service offering is available in the Strategy section of this chapter.

Furthermore, to continue advancing in the management of responsible products and services, GCO has set various objectives within its 2024-2026 Sustainability Master Plan. One of these objectives is the commitment to incorporate sustainability criteria into underwriting processes to gradually transition towards a low-carbon economy, in keeping with the targets of the Paris Agreement. In 2024, this objective has been met through Occident's commitment not to underwrite companies that engage in the following activities:

• Manufacture of fuel materials and pollutants
• Obtaining charcoal through deforestation of forests and burning of wood.
• Peat extraction
• Storage and/or wholesale trade of crude oil and refineries
• Storage and/or wholesale trade of butane, propane, and other similar gases
• Production of weapons and ammunition
• Production of adult entertainment

Additionally, regarding the EU Taxonomy regulation, the Group has set the goal of improving existing products to comply with a greater number of technical selection criteria of this regulation. In 2024, the Group achieved this goal, improving the alignment indicator of non-life premiums (3.2% in 2023 vs 3.8% in 2024). The trend in the GCO's Taxonomy indicators, both for investments and premiums, can be found in Annex I of this report.

Sustainable investment

Governance of sustainable investment (MDR-P)

GCO's Sustainable Investment Policy, approved by GCO's Board of Directors, outlines the ESG principles and criteria to be taken into account by the Group in the management of its financial investments and is complementary to the investment management principles established in the Group, which are based on the principle of prudence in its activities and whose main objective is to ensure the commitments made to its customers over time, with an adequate diversification of portfolios.

Additionally, the Group has an Annual Sustainable Investment Plan which lays down the sustainable investment goals to be achieved during each year in line with the principles set out in the Sustainable Investment Policy.

Furthermore, with a view to complying with the obligations of Regulation (EU) 2019/2088 on sustainability disclosures in the financial services sector (SFDR), the Group discloses specific information on how sustainability risks are taken into consideration in the investment decision-making process and how its investments are affected by environmental, social and governance factors (main adverse impacts).

All of the above information is available on the Group's corporate website, within the Sustainability section.

The Corporate Financial Investment Area is responsible for ensuring that the established sustainable investment principles are met in the organisation. Within the Financial Investments team, at least 14 people are directly involved in implementing and complying with the criteria and objectives set out in GCO's Sustainable Investment Policy.

This area also provides regular updates to the Sustainable Investment (SI) Committee on the progress of the sustainable investment strategy. This Committee, which reports to the Group's Investment Committee, is tasked with assessing and monitoring the implementation of the Group's Sustainable Investment Policy and the implementation of the Annual Plan. The agreements taken by the SI Committee and approved by the Investment Committee are reported to the Group's Management Committee, and subsequently reported to the Sustainability Committee on any issues deemed relevant.

Sustainable investment strategy

As a subscriber to the United Nations Principles for Responsible Investment (UN PRI), GCO has joined the commitment to achieving a global and sustainable financial system through the incorporation of environmental, social and corporate governance (ESG) issues into its investment strategy and in the active exercise of the property.

To achieve this, the Group incorporates ESG issues into its investment analysis and decision-making processes on the basis of the following principles:

Exclusion principles:

• Negative screening based on sector activity: Investment in companies in which part of their activity is carried out in certain excluded economic sectors is excluded (e.g., Thermal coal, Arctic oil and gas exploration and shale energy, production or marketing of landmines, etc.).
• Regulatory screening: Investment in companies whose performance is considered controversial and, in particular, that could adversely affect their operations, the environment or society in general is excluded.
• Positive screening: Investment in companies with poorer ESG risk management, as measured by a risk rating given to companies by an external provider, is excluded.

Integration principles:

• Sustainable investments: Investment in projects aimed at the transition towards a low-carbon economy, which is more resource-efficient and more sustainable, are progressively increased.
• Investments with impact: investment in projects aimed at achieving the social and environmental objectives, will be gradually increased, all in line with the priorities set out in the Group's Sustainability Master Plan.

For the implementation of these principles, the Group has tools from external suppliers that allow it to establish different criteria for the selection of investments, as well as to track the evolution of the companies in relation to the integration of the ESG criteria in the performance of their activity.

Index				Sustainability Report
01. General information	03. Social information	05. Business information	07. Annex I - Taxonomy	09. Annex III - ESRS Index
02. Environmental information 04. Governance information 06. Contributing to society 08. Annex II - Law 11/2018 10. External assurance report

Sustainable real estate investment

In recent years, GCO's real estate investment management area has focused on investing in properties deemed sustainable from an environmental standpoint. In particular, the pre-investment assessment takes into consideration aspects such as energy certification, the existence of facilities to reduce water consumption, centralised waste collection points, as well as any other possible improvements that could be made in that regard.

All of GCO's real estate investments in landmark buildings comply with the Group's Sustainable Real Estate Investment Policy, investing only in properties with LEED Gold or higher and/or BREEAM Very Good or higher certifications. These international standards in sustainable construction and management guarantee the Group's compliance with the environmental requirements it has set out to achieve.

Management of impacts, risks and opportunities (MDR-A)

Within GCO's value chain, incidents related to sustainable investment can primarily impact its own operations, distributors, and customers.

The potential negative impacts related to sustainable investment and their associated risks for the Group are detailed below.

Negative impacts	Associated risk	Current financial impact	Risk management
Investing in companies with unsustainable practices that perpetuate harmful behaviours for society and the environment (such as companies that violate human rights or are heavily reliant on fossil fuels, etc.) poses significant reputational risks.	Reputational risk arising from investing in unsustainable companies	No significant impact has been identified during the period, nor any extraordinary effects that would require adjustments in the next period.	Rigorous investment evaluation to ensure alignment with sustainability criteria and compliance with legal and corporate commitments, complemented by proactive and reactive communication strategies to respond promptly to potential criticism.
Difficulty generating value for customers, shareholders, or investors with a greater preference for sustainability	Loss of customers, shareholders, or investors due to lack of sustainable investment	No significant impact has been identified during the period, nor any extraordinary effects that would require adjustments in the next period.	Application of the sustainable investment policy that combines exclusion and integration criteria, energy certifications in real estate, and recurring communication with stakeholders about sustainability progress.

The potential positive impacts related to sustainable investment and their associated risks for the Group are detailed below.

Positive impacts	Associated opportunity	Current financial impact	Opportunity management
Promotion of sustainability by channelling resources towards sectors and products aligned with the transition to a low carbon economy, more resource-efficient, and more sustainable	Reputational improvement from having sustainable investment	No significant impact has been identified during the period, nor any extraordinary effects that would require adjustments in the next period.	Various types of sustainable investments (green bonds and similar) are monitored. Systematic processes are also implemented to identify and communicate sustainability initiatives with positive impact, ensuring that every relevant action is highlighted.
Generation of value for customers, shareholders, or investors with a greater appetite for ESG aspects	Attraction of new customers, shareholders, or investors with an appetite for ESG aspects	No significant impact has been identified during the period, nor any extraordinary effects that would require adjustments in the next period.	Expansion of the sustainable product offering aligned with ESG standards, ensuring adaptation to market expectations.

Sustainable investment parameters and goals (MDR-M y MDR-T)

In 2024, GCO exceeded its new sustainable investments target of 10%, set for this year in the Annual Sustainable Investment Plan.

ESG metrics are essential tools for assessing and maximising the impact of investments. For this reason, GCO effectively measures, analyses, and evaluates the impact of its financial investments through various metrics, such as greenhouse gas (GHG) emissions, carbon footprint, exposure to controversial weapons, violations of the United Nations Global Compact principles, and the Organisation for Economic Co-operation and Development (OECD) Guidelines for Multinational Enterprises, among others. This enables the Group to monitor whether investments are generating the expected sustainable outcomes.

In December 31, 2024, and in accordance with the Group's Sustainable Investment Policy, the value of sustainable investments in relation to the total investments and funds managed represents 69,8%.

GCO's sustainability-related investment commitments are included in the Annual Sustainable Investment Plan. Among these is the pledge not to invest in companies that derive more than 10% of their revenue from:

• The extraction or generation of energy from thermal coal
• Oil and/or gas exploration in the Arctic offshore regions
• Shale energy extraction
• The production and distribution of adult entertainment
• The manufacture of military weapon systems and/or comprehensive systems and components for military weapons manufacturing.
• The manufacture and sale of light weapons.

All the information on the Group's sustainable investment commitments can be found in the GCO Annual Sustainable Investment Plan at www.gco.com/inversion-sostenible. For the 2025 fiscal year, the Group has proposed to increase its new sustainable investments target to 12%, in line with one of the objectives set in the 2024-2026 Sustainability Master Plan.

In addition, in 2024, for the first time, the Group has calculated the Scope 3 emissions associated with its investment portfolio, an objective outlined in the 2024-2026 Sustainability Master Plan. The information on these emissions (available in the Environmental Information chapter of this Sustainability Report) will enable the Group to set decarbonisation goals, thereby fulfilling another of the objectives of the 2024-2026 Sustainability Master Plan.

Lastly, the Group also tracks the indicators of the EU Taxonomy Regulation to determine the degree to which its investments align with the environmental goals set out therein.

The trend in the GCO's Taxonomy indicators, both for investments and premiums, can be found in Annex I of this report.

06.

06. Contributing to society

Contribution to society and local communities

Strategy

The Group bases its business model on respect for people and on contributing positively to the environment and its stakeholders. The commitment undertaken with the communities in which it operates has been linked to economic development, social well-being and quality employment for more than a century.

Thus, through its two foundations, Fundación Occident and Fundación Mémora, contributions and sponsorships, and corporate volunteering initiatives, the Group supports projects and initiatives that generate a positive impact.

Management of impacts, risks and opportunities (MDR-A)

Within GCO's value chain, impacts related to contributions to society and local communities can mainly affect its own operations.

The potential negative impacts related to contributions to society and local communities and their associated risks for the Group are detailed below.

Negative impacts	Associated risk	Current financial impact	Risk management
Fraud in donation management, harming beneficiaries	Regulatory risk due to potential fraud in donation management	No significant impact has been identified during the period, nor any extraordinary effects that would require adjustments in the next period.	Strict compliance with the Code of Ethics, its development regulations, and complementary sustainability policies ensures ethical and responsible management with stakeholders. Tools such as the Sponsorship and Donation Request Protocol are implemented, along with Contingency Plans.
Social action initiatives/projects carried out by the Group's foundations that do not truly address societal needs	Risk of disconnect between the social action initiatives/projects undertaken by the Group's foundations and the real needs of society	No significant impact has been identified during the period, nor any extraordinary effects that would require adjustments in the next period.	A rigorous process is followed, which includes a preliminary analysis of the project's feasibility and its alignment with the foundations' objectives, followed by approval by the Project Evaluation Committee (CVP), composed of key members of the governing bodies.

The potential positive impacts related to contributions to society and local communities and their associated opportunities for the Group are detailed below.

Positive impacts	Associated opportunity	Current financial impact	Opportunity management
Development and promotion of social action projects, research, education, combating hunger, etc., for the benefit of society	Improvement in the company's reputation and image	No significant impact has been identified during the period, nor any extraordinary effects that would require adjustments in the next period.	Establish mechanisms for continuous monitoring of feedback on projects through traditional media, social networks, and similar platforms.
Increased employee pride derived from belonging to a Group committed to society and the environment	Improvement in workplace social relations resulting from participation in social projects and volunteer work	No significant impact has been identified during the period, nor any extraordinary effects that would require adjustments in the next period.	Implement programmes that foster a strong and positive organisational culture by developing activities that value individual and collective achievements, ensuring open communication, and encouraging continuous professional development.

Parameters and goals related to contributions to society (MDR-M y MDR-T)

The Group's social action is articulated through its two foundations, Fundación Occident and Fundación Mémora, contributions and sponsorships, and corporate volunteering initiatives.

Fundación Occident

The Occident Foundation is a private non-profit organisation created in memory of Jesús Serra Santamans, GCO's founder, whose purpose is to implement projects with the goal of making a better society for everyone, always guided by values such as solidarity, effort and teamwork.

Fundación Occident was presented the IMPULSA CULTURA Seal which acknowledges its values and its great work to foster cultural projects and actions with a major positive impact on society.

At present, the Foundation provides support and drives initiatives in research, business and teaching, social action, sport and the promotion of the arts.

Distribution of the contribution of Fundación Occident in the different lines of action 2024:

Fundación Occident approves its action plan each year, detailing all the activities to be carried out, their potential beneficiaries and the necessary human and material resources. A formal protocol is available to ensure objectivity, specifying the criteria for selecting the proposed initiatives and programmes. The project valuation committee is the responsible body. Through bi-monthly meetings, they select the set of new projects and assess the status of ongoing projects, among other duties. These projects and initiatives include participation programmes, impact assessment and development programmes.

A good example of these projects is the Foundation's collaboration with UNHCR, the UN refugee agency, with which it has been working since 2021 on various programmes to help displaced young people.

Furthermore, through the Fundación Occident scholarships and agreements with the various business schools, universities and organisations dedicated to this purpose, students with a good academic record and aptitude for training, but with an insufficient income per family unit to be able to afford this type of studies, are offered the possibility of undertaking qualified higher studies. These grants safeguard the principle of equal opportunities. The initiative is being carried out in Spain and also in international cooperation in Kenya or refugee camps with displaced persons, channelling this aid with the United Nations Agency for Refugees (UNHCR).

In 2024, the Foundation created the new Jesús Serra Scholarships, 12 scholarships for university degree studies for young people who want to be the first in their family to go to university, as well as young women who wish to pursue STEM studies (mathematics, engineering, physics, sciences, biology, etc.). In addition to covering the public cost of enrolment in Spanish universities, these scholarships provide support for training in languages, programming or other skills related to their studies, as well as a financial supplement based on the family's income and residence, especially when the student does not live near their university centre. These scholarships are complemented by a mentorship and continuous training programme, where the scholarship recipients will be guided by a professional in the field.

Furthermore, Fundación Occident collaborates with other entities such as the National Cancer Research Centre (CNIO), the National Cardiovascular Research Centre (CNIC), the Institute of Astrophysics of the Canary Islands (IAC), the Spanish National Research Council (CSIC), the Interhospital Cardiovascular Research Foundation (FIC), the Spanish Foundation for Science and Technology (Fecyt), Save the Children, Manos Unidas and Save the Med Foundation.

A new feature of this 2024 is the alliance between Fundación Occident and the Gasol Foundation aimed at jointly preventing childhood obesity and promoting healthy habits among young people. In its role as a universal partner of the Gasol Foundation, Fundación Occident has become the main collaborator of the PASOS Study. This study is key to evaluating the National Strategic Plan for the Reduction of Childhood Obesity, led by the Government of Spain.

Additionally, in November 2024, Fundación Occident and Occident launched a collaboration campaign with the Red Cross in response to the emergency situation caused by the DANA in Valencia (Spain). Through this campaign, all employees, mediators, and associates of the Group were able to make a donation that helped cover the basic needs of those affected. Likewise, Fundación Occident has collaborated with Fundación Princesa de Girona to carry out a Special Intervention Plan for young Valencians designed to support the reconstruction of the youth ecosystem of the populations affected by the DANA.

In 2022, Fundación Occident joined the Foundations for Climate pact, which advocates an active fight to tackle the climate crisis, with the goal of being able to lead a task force for the insurance sector.

Index				Sustainability Report
01. General information	03. Social information	05. Business information	07. Annex I - Taxonomy	09. Annex III - ESRS Index
02. Environmental information	04. Governance information			06. Contributing to society 08. Annex II - Law 11/2018 10. External assurance report

It also drives the Changemakers at Sea project in partnership with the Save the Med Foundation, which aims to cut down on the use of single-use plastic through solutions based on the three most important R's (Refuse, Reduce and Reuse). In 2024, the scope of participation was expanded to include university students, in addition to the school students who were already part of the initiative.

Meanwhile, Fundación Occident provides financial support for the analysis and research of rainwateroriginated waste, as part of the "Limpia ríos, salva océanos" initiative, promoted by Biotherm and the Ecoalf Foundation. This initiative's main goal is to reduce river pollution, which contributes to ocean degradation, and thus conserve aquatic ecosystems.

Regarding research, in 2024 an epidemiological study funded by Fundación Occident and Cardiored continued to identify the main cardiovascular risk factors in 4 healthcare areas of the Community of Madrid.

Fundación Occident also undertakes actions geared towards financial inclusion with the goal of training those people with difficulties in developing their economic capacity. Workshops and conferences are held for people with disabilities, where they learn about strategy, entrepreneurship, marketing, finance, legal and regulatory aspects, or people management, among other areas. The Foundation also runs a training plan for young Kenyan women with limited economic resources, providing them with access to secondary education and a trade.

In the area of Promoting the Arts, there was a notable increase in the number of actions and beneficiaries in 2024 in the Poetízate, poetry in the classroom programme, which seeks to present poetry in a friendly and attractive way to provide adolescents with more communicative and expressive tools.

It should be noted that GCO increased its contribution to Fundación Occident to 3.9 million euros, of which 3.6 million euros were returned to society through a total of 68 social projects in 2024. In the coming years, GCO is committed to continuing to increase its contribution to the foundation in order to intensify its social action efforts.

Fundación Mémora

Fundación Mémora was created in 2016 with the goal of improving society through the knowledge and experiences gained by Mémora throughout its history.

Its mission is to provide help to society by supporting and improving the care of people and their families who are facing the end of life, while also supporting the professionals who care for them.

The action undertaken by Fundación Mémora is based on four cornerstones: awareness-raising, training, research and innovation, and social action.

The first area is geared towards raising awareness and sensitisation, publicising strategies for active and healthy ageing, and training people to face death as the final part of life. For this purpose, in different cities, the Aulas Mémora are held. These are a series of outreach sessions in the form of conferences, workshops, concerts, etc., intended for the general population and, especially, for the elderly, caregivers and health personnel.

In the area of training, the Foundation aims to be a leading entity in the training of professionals in the health, social health, and social fields. The Foundation offers a broad range of training (courses, conferences, seminars and cycles) and is acknowledged as an organiser of accredited continuing education activities for professionals in the healthcare field.

Regarding innovation and research, the Foundation aspires to be a reference entity for all stakeholders related to the end-of-life cycle. In particular, for professionals involved in palliative care services in aspects of improving care for patients and their families. In order to liaise with professionals in the fields of patient care, projects are run in conjunction with the research institutes of the centres.

Finally, in the area of social action, emotional support spaces are maintained for family members, professionals, and other groups. These include psychological support for grief, offering services such as: telephone assistance with specialized psychologists, support through the web community "Your Support Network," and in-person psychological care, both individual and group.

Additionally, Fundación Mémora has a social reflection project called "Ciudades que Cuidan". This project was created with the aim of making care the central focus of municipal actions towards its citizens, highlighting attention at the end of life and specifically trying to prevent and avoid, where possible, death in vulnerability and loneliness.

The project is structured into four work areas. The first is the Observatory, which conducts a qualitative analysis of opinions published in the media. The second is the generation of knowledge on topics with entities that bring value to the project. Thirdly, a conceptual framework that integrates and consolidates the set of policies and actions to be developed in a municipality. And finally, an evaluation system that can be distinguished with a Quality Seal, measuring indicators across various categories that impact citizens' lives in a municipality.

In 2024, the Fundación Mémora has allocated 421,631 euros to a total of 4 social projects.

Index				Sustainability Report
01. General information	03. Social information	05. Business information	07. Annex I - Taxonomy	09. Annex III - ESRS Index
02. Environmental information	04. Governance information			06. Contributing to society 08. Annex II - Law 11/2018 10. External assurance report

Contributions and sponsorships

GCO is committed to a sponsorship strategy that drives sport, social integration and sustainability in general. Thus, in 2024 the Group continued its commitment to sponsorship agreements linked to sport, music and culture. In this regard, it has renewed its collaboration agreement with the Starlite festival, sponsoring the Starlite Occident held during the summer months and the second edition of Christmas by Starlite in Madrid. Likewise, Occident has lent its name to the first edition of the "Alma Occident Madrid" festival and has renewed its collaboration with the "Occident Summerfest Cerdanya" festival.

In addition, in 2024 Occident has reinforced its commitment to music as a strategic pillar of its sponsorship, supporting the Cruïlla festival and becoming the official sponsor of 'Les Nits' in Barcelona.

Additionally, as part of the collaboration agreement that Occident maintains with the Guggenheim Museum Bilbao as a Patron of the institution since its inauguration, Occident sponsored the retrospective of Austrian painter Martha Jungwirth.

In 2024, as part of its sponsorship actions to promote sports, the Group has sponsored prominent events and organizations such as the Conde de Godó Tennis Trophy, the Baqueira/Beret ski resort, and the women's handball club Bera-Bera and its "Image and Example" project, which promotes sports practice and fosters the values of teamwork.

In total, the amount allocated by the Group to sponsorship projects in 2024 totalled 4.6 million euros. Additionally, the Group is involved in partnership actions with UNESPA, ICEA, the Valle de Aran ski school and the Real Club Tenis de Barcelona. The amount of these partnership actions is 2.4 million euros in the financial year.

Social action and corporate volunteering

GCO channels the charitable concerns of its employees through corporate volunteering and generates a culture of collaboration and support among its staff for other social groups in need.

In 2024, corporate volunteering initiatives continued to be rolled out in the Group's companies, including the following:

• CHEERS4U: recreational training featuring Group employees with the aim of learning how to interact with and teach new skills to people with intellectual disabilities.
• Junior Achievement: in partnership with Unespa, Group employees gave training sessions in schools to encourage financial education.
• World Cleanup Day: Group volunteers from various countries participated in clean-up drives and litter collection initiatives, primarily in coastal areas, reservoirs, rivers, and canals, as part of World Cleanup Day.
• Fundación Prevent: mentoring for entrepreneurs with disabilities who receive training at ESADE to assess and enhance their business plan or grants for higher education for students with disabilities for their inclusion in the labour market.
• Fundación Exit: volunteering, the aim of which is to combat school failure and prevent students from dropping out of school at an early age. Each volunteer acts as a coach and accompanies a young person, aged between 16 and 19, in defining a personal/professional goal, as well as guiding them in the steps to take to achieve it.
• Horizons 2024 workshops: in which 59 employees from Prepersa went to Sant Salvador beach in Tarragona to collect waste, removing a total of 154 kg of debris, in collaboration with Fundación Occident and Fundación Ecomar.

In addition, in 2024 Atradius undertook a total of 50 initiatives to contribute to social action at a local level, with a contribution of €73.093 through partnerships with local charitable organisations and employee volunteer programmes.

Among the initiatives promoted were donation drives for various causes, such as the support of Atradius UK and Atradius Ireland for the "Street Aid Wales" initiative, raising funds for homeless people in Wales through bake sales, charity events, and choral concerts throughout the year. Similarly, Atradius Netherlands participated, for the tenth consecutive year, in the Amsterdam City Swim, where funds were raised to combat ALS.

Index				Sustainability Report
01. General information	03. Social information	05. Business information	07. Annex I - Taxonomy	09. Annex III - ESRS Index
02. Environmental information	04. Governance information			06. Contributing to society 08. Annex II - Law 11/2018 10. External assurance report

Contribution to the SDGs

The approval by the UN's General Assembly of the 2030 Agenda for Sustainable Development and with this the Sustainable Development Goals (SDG) entails the commitment of governments as well as civil society and companies to contribute to their achievement. The activities undertaken by GCO and the work carried out by Fundación Occident enable us to contribute to several of the United Nations Sustainable Development Goals.

• ü More than €196,500 donated to educational accompaniment, emotional support and nutrition programmes with Save the Children and the Balia Foundation
• ü €24,545 donated to food banks

• ü 49 hours of training per employee
• ü 9% of Fundación Occident's contributions are earmarked for teaching projects
• ü More than €191,900 allocated to grants for young people with low family incomes in secondary and higher education centres of reference

• ü More than €188,400 allocated to scholarships and grants for young people at high risk of vulnerability to support their academic and professional education, as well as the construction of educational facilities in international cooperation projects

• ü More than 8,000 employees

• ü 124 employees with disability
• ü 97.5% with permanent contracts
• ü Turnover rate of 12.5%

• ü 225.2 million euros accrued in corporate income tax

• ü Range of products and services with environmental coverage

• ü Offices with the LEED energy rating
• ü Project to install photovoltaic panels at the main buildings

• ü Principles for Sustainable Insurance (PSI)

• ü Principles for Responsible Investment (PRI) United Nations Global Compact

• ü No occupational illness

• ü More than €211,400 donated for training and maternal intervention in international cooperation
• ü Employee well-being programme: emotional health workshop
• ü More than €441,400 earmarked for R&D&I projects relating to oncological, cardiovascular and dietary diseases.
• ü Support for children with complex diagnoses in hospital settings

• ü 51% of employees are men and 49% are women
• ü Member of the EWI Network, which promotes the presence of women in the management of insurance companies

• ü Grants for job training and entrepreneurship programmes for people at risk of exclusion (disability and/or high vulnerability). 448 hours of corporate volunteering
• ü Adapted skiing and sailing sports programmes for young people with disabilities: 197 sportspeople
• ü 118 grants in musical and piano training for children in situations of exclusion

• ü "Cleanup Day" volunteering initiative involving rubbish collection drives, primarily in coastal areas, reservoirs, rivers, and canals.
• ü €189,469 allocated to environmental education for schoolchildren

• ü No confirmed cases of corruption
• ü 3.9 million euros allocated to contributions and nonprofit organisations

07.

1. Annex I – Additional taxonomy information

European taxonomy of environmentally sustainable economic activities

The EU Taxonomy Regulation (EU Regulation 2020/852), which came into force on 12 July 2020, lays down the classification system for environmentally sustainable economic activities.

It deems an activity to be economically sustainable when it substantially contributes to achieving one or more of the six environmental objectives of Taxonomy: 1) climate change mitigation, 2) climate change adaptation, 3) sustainable use and protection of water and marine resources; 4) transition to a circular economy, 5) prevention and control of pollution, and 6) protection and restoration of biodiversity and ecosystems.

Besides making a substantial contribution to at least one of these goals, it must be proven that the economic activity meets established technical screening criteria, does not cause significant harm to the other goals (DNSH) and fulfils the minimum social safeguards (MSS).

Article 8 of the Taxonomy Regulation establishes for all companies required to disclose non-financial information (according to Directive 2013/34/EU), the need to include information on how and to what extent the company's activities are associated with economic activities that are deemed to be environmentally sustainable.

With regard to fiscal year 2023, financial companies must disclose eligibility information related to Taxonomy goals 1 to 6, and the alignment information for Taxonomy goals 1 and 2.

GCO has conducted an analysis of the Taxonomy requirements for its insurance activity, excluding the funeral activity due to its low significance.

Asset eligibility and alignment according to the EU Taxonomy

This procedure is compulsory throughout the Group, and GCO is in charge of reporting the consolidated Group information required by the Taxonomy.

Within Delegated Regulation (EU) 2021/2178 and amendments thereto (published in June and November 2023), the indicators to be developed by insurance and reinsurance undertakings to calculate the indicators of their investment activities (assets) are explained.

Based on the types of assets on GCO's balance sheet (under IFRS 9 and IFRS 17), those that may affect the denominator and numerator of the key performance indicator have been selected.

• Denominator: assets that are deemed to be within the scope of the indicator of assets covered by the Taxonomy have been selected.
• Numerator: assets that are deemed to be within the scope of the indicator of assets covered by the Taxonomy and which are analysed in order to determine whether or not they are aligned with the Taxonomy.

In accordance with Article 7 of Delegated Regulation (EU) 2021/2178, the following clarifications are made regarding the scope of assets to be considered in the key performance indicator:

• Exposures to central governments, central banks and supranational issuers are excluded from the calculation of the numerator and denominator of the KPIs for financial firms.
• Derivatives are excluded from the numerator of the key performance indicator for financial undertakings.
• Exposures of firms that are not required to publish non-financial information pursuant to Article 19a or 29a of Directive 2013/34/EU (NFRD) will be excluded from the numerator of the KPI for financial firms.

In order to obtain the eligibility and alignment percentages (and thus compliance with the DNSH and MSS criteria) of the companies that are part of the Group's asset portfolio, the Clarity tool has been used. The amounts of aligned investments have been calculated based on the alignment percentages published by the companies 2023 where GCO has a position at the close of 2024.

The results obtained for GCO are as follows (figures in thousands of euros):

Key Performance Indicator (KPI)
The weighted average value of all the investments of insurance or reinsurance undertakings that are directed at funding, or are associated with Taxonomy-aligned economic activities relative to the value of total assets covered by the KPI, with following weights for investments in undertakings per below:	The weighted average value of all the investments of insurance or reinsurance undertakings that are directed at funding, or are associated with Taxonomy-aligned economic activities, with following weights for investments in undertakings per below:
Turnover-based: 0.0080%*	Turnover-based: 1,106.9*
Capital expenditures-based: 0.0118%*	Capital expenditures-based: 1,635.4*
The percentage of assets covered by the KPI relative to total investments of insurance and reinsurance undertakings (total AuM). Excluding investments in sovereign entities.	The monetary value of assets covered by the KPI. Excluding investments in sovereign entities.
Coverage ratio: 87%	Coverage: 13,852,741.7**

*The KPIs for the weighted average of aligned investments have been calculated using the alignment percentage of each investment based on its weight within GCO's portfolio.

**Covered assets include those that cannot be classified under the categories of aligned, eligible non-aligned, or non-eligible, as information on these assets is not available. The breakdown of the following tables includes those covered assets that could be classified.

Additional breakdown of the KPI denominator
The percentage of derivatives relative to total assets covered by the KPI.	The value in monetary amounts of derivatives.
0.00%	0
The proportion of exposures to financial and non-financial undertakings not subject to Articles 19a and 29a of Directive 2013/34/EU over total assets covered by the KPI:	Value of exposures to financial and non-financial undertakings not subject to Articles 19a and 29a of Directive 2013/34/EU:
Non-financial undertakings: 12.53%	Non-financial undertakings: 1,735,144.0
Financial undertakings: 18.07%	Financial undertakings: 2,503,225.8
The proportion of exposures to financial and non-financial undertakings from non-EU countries not subject to Articles 19a and 29a of Directive 2013/34/EU over total assets covered by the KPI:	Value of exposures to financial and non-financial undertakings from non-EU countries not subject to Articles 19a and 29a of Directive 2013/34/EU:
Non-financial undertakings: 8.81%	Non-financial undertakings: 1,220,775.3
Financial undertakings: 5.40%	Financial undertakings: 748,215.2
The proportion of exposures to financial and non-financial undertakings subject to Articles 19a and 29a of Directive 2013/34/EU over total assets covered by the KPI:	Value of exposures to financial and non-financial undertakings subject to Articles 19a and 29a of Directive 2013/34/EU:
Non-financial undertakings: 18.59%	Non-financial undertakings: 2,575,406.5
Financial undertakings: 14.82%	Financial undertakings: 2,053,358.1
The proportion of exposures to other counterparties and assets over total assets covered by the KPI:	Value of exposures to other counterparties:
35.99%	4,985,607.2
The proportion of the insurance or reinsurance undertaking's investments other than investments held in respect of life insurance contracts where the investment risk is borne by the policy holders, that are directed at funding, or are associated with, Taxonomy-aligned economic activities:	Value of insurance or reinsurance undertaking's investments other than investments held in respect of life insurance contracts where the investment risk is borne by the policy holders, that are directed at funding, or are associated with, Taxonomy-aligned economic activities:
27.46%	3,804,095.1

Index				Sustainability Report
01. General information	03. Social information	05. Business information	07. Annex I - Taxonomy	09. Annex III - ESRS Index

02. Environmental information 04. Governance information 06. Contributing to society 08. Annex II - Law 11/2018 10. External assurance report

The value of all the investments that are funding economic activities that are not Taxonomy-eligible relative to the value of total assets covered by the KPI: Turnover-based: 71.61% Capital expenditures-based: 62.08% Value of all the investments that are funding economic activities that are not Taxonomy-eligible: Turnover-based: 9,920,237.9 Capital expenditures-based: 8,600,146.2 The value of all the investments that are funding Taxonomyeligible economic activities, but not Taxonomy-aligned relative to the value of total assets covered by the KPI: Turnover-based: 4.10% Capital expenditures-based: 3.47% Value of all the investments that are funding Taxonomyeligible economic activities, but not Taxonomy-aligned: Turnover-based: 567,885.5 Capital expenditures-based: 481,040.9

Additional breakdown of the KPI numerator
The proportion of Taxonomy-aligned exposures to financial	Value of Taxonomy-aligned exposures to financial and non
and non-financial undertakings subject to Articles 19a and 29a	financial undertakings subject to Articles 19a and 29a of
of Directive 2013/34/EU over total assets covered by the KPI:	Directive 2013/34/EU:
Non-financial undertakings:	Non-financial undertakings:
Turnover-based: 2.68%	Turnover-based: 370,748.2
Capital expenditures-based: 4.10%	Capital expenditures-based: 567,760.5
Financial undertakings:	Financial undertakings:
Turnover-based: 0.49%	Turnover-based: 67,847.4
Capital expenditures-based: 0.45%	Capital expenditures-based: 63,003.5
The proportion of the insurance or reinsurance undertaking's	Value of insurance or reinsurance undertaking's investments
investments other than investments held in respect of life	other than investments held in respect of life insurance
insurance contracts where the investment risk is borne by the	contracts where the investment risk is borne by the policy
policy holders, that are directed at funding, or are associated	holders, that are directed at funding, or are associated with,
with, Taxonomy-aligned:	Taxonomy-aligned economic activities:
Turnover-based: 2.78%	Turnover-based: 385,311.0
Capital expenditures-based: 2.98%	Capital expenditures-based: 413,012.0
The proportion of Taxonomy-aligned exposures to other	Value of Taxonomy-aligned exposures to other counterparties
counterparties in over total assets covered by the KPI:	over total assets covered by the KPI:
Turnover-based: 1.33%	Turnover-based: 14,198.9
Based on investments in fixed assets: 0.02%	Based on investments in fixed assets: 217.3

*Calculated based on the value of the covered assets indicated under the headings of Property, Plant and Equipment, and Real Estate Investments in the consolidated GCO Balance Sheet.

Breakdown of the numerator of the KPI per environmental objective (Taxonomy-aligned activities)
1) Climate change mitigation		Transition activities: A
		0.04% (turnover)
	Turnover: 3.10%	0.09% (CapEx)
	CapEx: 4.54%	Enabling activities: B
		1.84% (turnover)
		2.70% (CapEx)
2) Climate change adaptation	Turnover: 0.1392%	Enabling activities: B
		0.0573% (turnover)
	CapEx: 0.0031%	0.0010% (CapEx)
3) The sustainable use and protection of water and marine resources	Turnover: 0.0030%	Enabling activities: B
		0.0017% (turnover)
	CapEx: 0.0006%	0.0002% (CapEx)

01. General information 03. Social information 05. Business information 07. Annex I - Taxonomy 09. Annex III - ESRS Index 02. Environmental information 04. Governance information 06. Contributing to society 08. Annex II - Law 11/2018 10. External assurance report

4) The transition to a circular economy	Turnover: 0.0197% CapEx: 0.0093%	Enabling activities: B 0.0149% (turnover) 0.0063% (CapEx)
5) Pollution prevention and control	Turnover: 0.0032% CapEx: 0.0064%	Enabling activities: B 0.0000% (turnover) 0.0000% (CapEx)
6) The protection and restoration of biodiversity and ecosystems	Turnover: 0.0000% CapEx: 0.0000%	Enabling activities: B 0.0000% (turnover) 0.0000% (CapEx)

The following are the templates corresponding to nuclear and fossil energy established in Delegated Regulation (EU) 2022/1214 amending Delegated Regulation (EU) 2021/2178:

Template 1 Nuclear and fossil gas related activities

Row	Nuclear energy related activities
1	The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative electricity generation facilities that produce energy from nuclear processes with minimal waste from the fuel cycle.	Yes
2	The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production, as well as their safety upgrades, using best available technologies.	Yes
3	The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production from nuclear energy, as well as their safety upgrades.	Yes
Row	Fossil gas related activities
4	The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that produce electricity using fossil gaseous fuels.	Yes
5	The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and power generation facilities using fossil gaseous fuels.	Yes
6	The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation facilities that produce heat/cool using fossil gaseous fuels.	Yes

Information on Turnover (figures in thousands of euros)

Template 2 Taxonomy-aligned economic activities (denominator)

	Economic activities	Turnover
Row		CCM + CCA		Climate change mitigation (CCM)		Climate change adaptation (CCA)
		Amount	%	Amount	%	Amount	%
1	Amount and proportion of taxonomy aligned economic activity referred to in Section 4.26 of Annexes I and II to (EU) Delegated Regulation 2021/2139 in the denominator of the applicable KPI	€14.9	—%	€14.9	—%	€—	—%
2	Amount and proportion of taxonomy aligned economic activity referred to in Section 4.27 of Annexes I and II to (EU) Delegated Regulation 2021/2139 in the denominator of the applicable KPI	€2.1	—%	€2.1	—%	€—	—%
3	Amount and proportion of taxonomy aligned economic activity referred to in Section 4.28 of Annexes I and II to (EU) Delegated Regulation 2021/2139 in the denominator of the applicable KPI	€2,918.2	0.05%	€2,918.2	0.05%	€—	—%

Index				Sustainability Report
01. General information	03. Social information	05. Business information	07. Annex I - Taxonomy	09. Annex III - ESRS Index

02. Environmental information 04. Governance information 06. Contributing to society 08. Annex II - Law 11/2018 10. External assurance report

4	Amount and proportion of taxonomy aligned economic activity referred to in Section 4.29 of Annexes I and II to (EU) Delegated Regulation 2021/2139 in the denominator of the applicable KPI	€—	—%	€—	—%	€—	—%
5	Amount and proportion of taxonomy aligned economic activity referred to in Section 4.30 of Annexes I and II to (EU) Delegated Regulation 2021/2139 in the denominator of the applicable KPI	€74.1	—%	€74.1	—%	€—	—%
6	Amount and proportion of taxonomy aligned economic activity referred to in Section 4.31 of Annexes I and II to (EU) Delegated Regulation 2021/2139 in the denominator of the applicable KPI	€72.6	—%	€72.6	—%	€—	—%
7	Amount and proportion of other taxonomy aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI	€383,323.4	6.47%	€345,562.6	5.83%	€19,413.9	0.33%
8	Total applicable KPI	€386,405.4	6.52%	€348,644.6	5.89%	€19,413.9	0.33%

Template 3 Taxonomy-aligned economic activities (numerator)

		Turnover
Row	Economic activities	CCM + CCA		Climate change mitigation (CCM)		Climate adaptation (CCA)	change
		Amount	%	Amount	%	Amount	%
1	Amount and proportion of taxonomy aligned economic activity referred to in Section 4.26 of Annexes I and II to (EU) Delegated Regulation 2021/2139 in the numerator of the applicable KPI	€14.9	—%	€14.9	—%	€—	—%
2	Amount and proportion of taxonomy aligned economic activity referred to in Section 4.27 of Annexes I and II to (EU) Delegated Regulation 2021/2139 in the numerator of the applicable KPI	€2.1	—%	€2.1	—%	€—	—%
3	Amount and proportion of taxonomy aligned economic activity referred to in Section 4.28 of Annexes I and II to (EU) Delegated Regulation 2021/2139 in the numerator of the applicable KPI	€2,918.2	0.76%	€2,918.2	0.76%	€—	—%
4	Amount and proportion of taxonomy aligned economic activity referred to in Section 4.29 of Annexes I and II to (EU) Delegated Regulation 2021/2139 in the numerator of the applicable KPI	€—	—%	€—	—%	€—	—%
5	Amount and proportion of taxonomy aligned economic activity referred to in Section 4.30 of Annexes I and II to (EU) Delegated Regulation 2021/2139 in the numerator of the applicable KPI	€74.1	0.02%	€74.1	0.02%	€—	—%
6	Amount and proportion of taxonomy aligned economic activity referred to in Section 4.31 of Annexes I and II to (EU) Delegated Regulation 2021/2139 in the numerator of the applicable KPI	€72.6	0.02%	€72.6	0.02%	€—	—%

02. Environmental information 04. Governance information 06. Contributing to society 08. Annex II - Law 11/2018 10. External assurance report

7	Amount and proportion of other taxonomy aligned economic activities not referred to in rows 1 to 6 above in the numerator of the applicable KPI	€383,323.4	99.20%	€345,562.6	89.43%	€19,413.9	5.02%
8	Total amount and proportion of taxonomy aligned economic activities in the numerator of the applicable KPI	€386,405.4	100.00%	€348,644.6	90.23%	€19,413.9	5.02%

Template 4 Taxonomy-eligible but not taxonomy-aligned economic activities

		Turnover
Row	Economic activities	CCM + CCA		Climate change mitigation (CCM)		Climate adaptation (CCA)	change
		Amount	%	Amount	%	Amount	%
1	Amount and proportion of taxonomy eligible but not taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to (EU) Delegated Regulation 2021/2139 in the denominator of the applicable KPI	€—	—%	€—	—%	€—	—%
2	Amount and proportion of taxonomy eligible but not taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to (EU) Delegated Regulation 2021/2139 in the denominator of the applicable KPI	€1.2	—%	€1.2	—%	€—	—%
3	Amount and proportion of taxonomy eligible but not taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to (EU) Delegated Regulation 2021/2139 in the denominator of the applicable KPI	€6.7	—%	€6.7	—%	€—	—%
4	Amount and proportion of taxonomy eligible but not taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to (EU) Delegated Regulation 2021/2139 in the denominator of the applicable KPI	€27,120.3	0.46%	€27,120.3	0.46%	€—	—%
5	Amount and proportion of taxonomy eligible but not taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to (EU) Delegated Regulation 2021/2139 in the denominator of the applicable KPI	€1,926.0	0.03%	€1,926.0	0.03%	€—	—%
6	Amount and proportion of taxonomy eligible but not taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to (EU) Delegated Regulation 2021/2139 in the denominator of the applicable KPI	€10.6	—%	€10.6	—%	€—	—%
7	Amount and proportion of other taxonomy eligible but not taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI	€250,387.6	4.23%	€81,928.3	1.38%	€8,055.6	0.14%
8	Total amount and proportion of taxonomy eligible but not taxonomy-aligned economic activities in the denominator of the applicable KPI	€279,452.4	4.72%	€110,993.1	1.87%	€8,055.6	0.14%

Template 5 Taxonomy non-eligible economic activities

Row	Economic activities	Turnover	%
1	Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI *	€602,780.6	10.18%
2	Amount and proportion of economic activity referred to in row 2 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI *	€608,410.3	10.27%
3	Amount and proportion of economic activity referred to in row 3 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI *	€702,150.2	11.85%
4	Amount and proportion of economic activity referred to in row 4 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI *	€1,024,100.8	17.29%
5	Amount and proportion of economic activity referred to in row 5 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI *	€985,059.9	16.63%
6	Amount and proportion of economic activity referred to in row 6 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI *	€647,267.7	10.93%
7	Amount and proportion of other taxonomy-non-eligible economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI	€1,608,767.4	27.16%
8	Total amount and proportion of taxonomy-non-eligible economic activities in the denominator of the applicable KPI	€5,257,619.0	100%

*Since the distribution of the asset's non-eligibility across its activities is unknown, the non-eligibility of each activity has been determined based on the total non-eligibility of the asset rather than just that associated with each individual activity.

Capex information (figures in thousands of euros)

Template 2 Taxonomy-aligned economic activities (denominator)

	Economic activities	CapEx
Row		CCM + CCA		Climate change mitigation (CCM)		Climate change adaptation (CCA)
		Amount	%	Amount	%	Amount	%
1	Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to (EU) Delegated Regulation 2021/2139 in the denominator of the applicable KPI	€11.0	—%	€11.0	—%	€—	—%
2	Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to (EU) Delegated Regulation 2021/2139 in the denominator of the applicable KPI	€329.8	0.01%	€329.8	0.01%	€—	—%
3	Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to (EU) Delegated Regulation 2021/2139 in the denominator of the applicable KPI	€2,227.5	0.05%	€2,227.5	0.05%	€—	—%
4	Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to (EU) Delegated Regulation 2021/2139 in the denominator of the applicable KPI	€289.2	0.01%	€289.2	0.01%	€—	—%
5	Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to (EU) Delegated Regulation 2021/2139 in the denominator of the applicable KPI	€383.9	0.01%	€383.9	0.01%	€—	—%

6	Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to (EU) Delegated Regulation 2021/2139 in the denominator of the applicable KPI	€28.2	—%	€28.2	—%	€—	—%
7	Amount and proportion of other taxonomy aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI	€658,153.1	13.54%	€654,803.5	13.48%	€492.8	0.01%
8	Total applicable KPI	€661,422.8	13.61%	€658,073.1	13.54%	€492.8	0.01%

Template 3 Taxonomy-aligned economic activities (numerator)

		CapEx
Row	Economic activities	CCM + CCA		Climate change mitigation (CCM)		Climate change adaptation (CCA)
		Amount	%	Amount	%	Amount	%
1	Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to (EU) Delegated Regulation 2021/2139 in the numerator of the applicable KPI	€11.0	—%	€11.0	—%	€—	—%
2	Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to (EU) Delegated Regulation 2021/2139 in the numerator of the applicable KPI	€329.8	0.05%	€329.8	0.05%	€—	—%
3	Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to (EU) Delegated Regulation 2021/2139 in the numerator of the applicable KPI	€2,227.5	0.34%	€2,227.5	0.34%	€—	—%
4	Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to (EU) Delegated Regulation 2021/2139 in the numerator of the applicable KPI	€289.2	0.04%	€289.2	0.04%	€—	—%
5	Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to (EU) Delegated Regulation 2021/2139 in the numerator of the applicable KPI	€383.9	0.06%	€383.9	0.06%	€—	—%
6	Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to (EU) Delegated Regulation 2021/2139 in the numerator of the applicable KPI	€28.2	—%	€28.2	—%	€—	—%
7	Amount and proportion of other taxonomy aligned economic activities not referred to in rows 1 to 6 above in the numerator of the applicable KPI	€658,153.1	99.51%	€654,803.5	99.00%	€492.8	0.07%
8	Total amount and proportion of taxonomy aligned economic activities in the numerator of the applicable KPI	€661,422.8	100.00%	€658,073.1	99.49%	€492.8	0.07%

Index				Sustainability Report
01. General information	03. Social information	05. Business information	07. Annex I - Taxonomy	09. Annex III - ESRS Index
02. Environmental information	04. Governance information			06. Contributing to society 08. Annex II - Law 11/2018 10. External assurance report

Template 4 Taxonomy-eligible but not taxonomy-aligned economic activities

		CapEx
Row	Economic activities	CCM + CCA		Climate change mitigation (CCM)		Climate change adaptation (CCA)
		Amount	%	Amount	%	Amount	%
1	Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to (EU) Delegated Regulation 2021/2139 in the denominator of the applicable KPI	€—	—%	€—	—%	€—	—%
2	Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to (EU) Delegated Regulation 2021/2139 in the denominator of the applicable KPI	€0.3	—%	€—	—%	€—	—%
3	Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to (EU) Delegated Regulation 2021/2139 in the denominator of the applicable KPI	€1.9	—%	€1.9	—%	€—	—%
4	Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to (EU) Delegated Regulation 2021/2139 in the denominator of the applicable KPI	€6,960.5	0.14%	€6,960.5	0.14%	€—	—%
5	Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to (EU) Delegated Regulation 2021/2139 in the denominator of the applicable KPI	€758.2	0.02%	€758.2	0.02%	€—	—%
6	Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to (EU) Delegated Regulation 2021/2139 in the denominator of the applicable KPI	€61.7	—%	€61.7	—%	€—	—%
7	Amount and proportion of other taxonomy eligible but not taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI	€251,318.3	5.17%	€153,270.1	3.15%	€5,432.2	0.11%
8	Total amount and proportion of taxonomy eligible but not taxonomy-aligned economic activities in the denominator of the applicable KPI	€259,100.9	5.33%	€161,052.4	3.31%	€5,432.2	0.11%

Template 5 Taxonomy non-eligible economic activities

Row	Economic activities	CapEx	%
1	Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy non-eligible in accordance with Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI *	€713,218.2	14.68%
2	Amount and proportion of economic activity referred to in row 2 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI *	€720,619.0	14.83%
3	Amount and proportion of economic activity referred to in row 3 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI *	€838,042.5	17.25%
4	Amount and proportion of economic activity referred to in row 4 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI *	€1,041,546.0	21.43%
5	Amount and proportion of economic activity referred to in row 5 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI *	€1,049,565.8	21.60%
6	Amount and proportion of economic activity referred to in row 6 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI *	€746,769.1	15.37%
7	Amount and proportion of other taxonomy-non-eligible economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI	€1,818,573.8	37.42%
8	Total amount and proportion of taxonomy-non-eligible economic activities in the denominator of the applicable KPI	€3,938,825.0	100.0%

The amounts in terms of CapEx and Turnover in the tables "Additional numerator breakdown", "Template 2", "Template 3", "Template 4" and "Template 5", have been calculated using the eligibility and alignment percentages obtained in Clarity with respect to the amount of the investment.

Qualitative information on asset eligibility and alignment indicators following the EU Taxonomy

In the denominator, the assets covered have been considered, which are: Goodwill, Intangible Assets, Properties, Land, and Equipment for Own Use, Investment Properties (not for own use), Investments (excluding Index Linked and Unit Linked assets), Participations, Equities, Private Fixed Income, Structured Notes, Collateralised Securities, Investment Funds, Derivatives, Deposits (excluding cash equivalents), Other Investments, Assets Held for Unit-Linked Contracts, Loans and Mortgages, Loans and Mortgages to Individuals, Other Loans and Mortgages, Loans and Policies, Deposits to Cedents, Treasury Shares, Cash and Cash Equivalents.

The following have been considered as potentially eligible assets in the numerator: Investments (excluding Index Linked and Unit Linked assets), Investment Properties (not for own use), Participations, Equities, Private Fixed Income, Structured Notes, Collateralised Securities, Investment Funds, Deposits (excluding cash equivalents), Assets Held for Unit-Linked Contracts, Loans and Mortgages, Loans and Mortgages to Individuals, Other Loans and Mortgages, Loans and Policies.

The eligibility and alignment information for the above assets is obtained through the Clarity tool. Assets with an identifier code not recognised by Clarity, i.e., those without an ISIN, have been analysed separately. The data on issuers was manually obtained from their reports or from other investments by the same issuer that have been uploaded to Clarity.

For investment funds for which information is available, a look-through of the fund has been conducted to analyse its eligibility and alignment. Funds for which no information is available have been included as ineligible. Furthermore, intra-Group investments have been deemed covered and ineligible since they are investments defined by regulation, but for which it is not possible to assess their eligibility and alignment.

In the case of environmentally sustainable bonds (green bonds) issued by a company, the taxonomy makes it possible to include within the calculation of the KPIs specific information on such financing in relation to its eligibility and alignment. For this reason, the calculation process did not use information on the eligibility and alignment of the company issuing the environmentally sustainable bond, but rather the specific information of the bond, using the Clarity tool. Additionally, the Taxonomy specifies that environmentally sustainable bonds issued by supranational entities, governments, or central banks must be included if the issuer has reported relevant information.

If the issuer has not published specific information about the environmentally sustainable bond, issuer data is used in the same way as for other assets.

Index	Sustainability Report
01. General information	03. Social information	05. Business information	07. Annex I - Taxonomy	09. Annex III - ESRS Index
02. Environmental information	04. Governance information			06. Contributing to society 08. Annex II - Law 11/2018 10. External assurance report

With regard to real estate, only properties intended for use by third parties have been considered eligible. To define alignment, an analysis was conducted of the Group's main properties that generate business volume (rental income) during the year, identifying whether they include CapEx (capital expenditure on renovations to improve environmental efficiency is considered). The rest of the properties have been deemed as non-aligned due to their low materiality with regard to the total portfolio.

The amounts computed for eligibility and alignment take into account rental income and CapEx for the properties during the financial year.

Once these criteria have been verified, it has been checked whether the analysed properties comply with the regulatory requirements of activity 7.7 Acquisition and ownership of buildings for the mitigation and adaptation to climate change objectives.

To complete the verification of alignment for the properties that meet the above criteria, their compliance with the DNSH (Do No Significant Harm) principle has been evaluated. For this, a materiality analysis of physical climate risks to which these properties may be exposed has been conducted. In cases where it has been determined that the risk is material, an analysis has been carried out to check whether adaptation solutions are available through a climate risk adaptation plan.

Regarding real estate investment funds, an analysis has been conducted to verify the availability of Taxonomy information in accordance with Articles 8 or 9 of the SFDR Regulation. Based on this analysis, each real estate investment fund has been asked for its alignment data. For funds that had such data, it has been taken as a reference for calculating the corresponding KPIs included in the tables reported above. However, for those funds that do not have this information, their underlying assets, i.e. their real estate and infrastructure, have been analysed whenever possible.

The taxonomy information on GCO's real estate and real estate investment funds has been collected by completing questionnaires defined for this purpose.

For comparability purposes, the results achieved in 2023 are shown below (figures in thousands of euros):

Key Performance Indicator (KPI)
The weighted average value of all the investments of insurance or reinsurance undertakings that are directed at funding, or are associated with Taxonomy-aligned economic activities relative to the value of total assets covered by the KPI, with following weights for investments in undertakings per below:	The weighted average value of all the investments of insurance or reinsurance undertakings that are directed at funding, or are associated with Taxonomy-aligned economic activities, with following weights for investments in undertakings per below:
Turnover-based: 0.011% Capital expenditures-based: 0.013%	Turnover-based: 1,354.0 Capital expenditures-based: 1,585.2
The percentage of assets covered by the KPI relative to total investments of insurance and reinsurance undertakings (total AuM). Excluding investments in sovereign entities.	The monetary value of assets covered by the KPI. Excluding investments in sovereign entities.
Coverage ratio: 80%	Coverage: 12,674,344.8**

*The KPIs for the weighted average of aligned investments have been calculated using the alignment percentage of each investment based on its weight within GCO's portfolio.

**Covered assets include those that cannot be classified under the categories of aligned, eligible non-aligned, or non-eligible, as information on these assets is not available. The breakdown of the following tables includes those covered assets that could be classified.

Additional breakdown of the KPI denominator
The percentage of derivatives relative to total assets covered by the KPI.	The value in monetary amounts of derivatives.
0.00%	0
The proportion of exposures to financial and non-financial undertakings not subject to Articles 19a and 29a of Directive 2013/34/EU over total assets covered by the KPI:	Value of exposures to financial and non-financial undertakings not subject to Articles 19a and 29a of Directive 2013/34/EU:
Non-financial undertakings: 11.00% Financial undertakings: 24.25%	Non-financial undertakings: 1,393,932.2 Financial undertakings: 3,098,555.2

Index				Sustainability Report
01. General information	03. Social information	05. Business information	07. Annex I - Taxonomy	09. Annex III - ESRS Index
02. Environmental information	04. Governance information			06. Contributing to society 08. Annex II - Law 11/2018 10. External assurance report

The proportion of exposures to financial and non-financial undertakings from non-EU countries not subject to Articles 19a and 29a of Directive 2013/34/EU over total assets covered by the KPI: Non-financial undertakings: 8.56% Financial undertakings: 8.60% Value of exposures to financial and non-financial undertakings from non-EU countries not subject to Articles 19a and 29a of Directive 2013/34/EU: Non-financial undertakings: 1,084,706.1 Financial undertakings: 1,090,009.0 The proportion of exposures to financial and non-financial undertakings subject to Articles 19a and 29a of Directive 2013/34/EU over total assets covered by the KPI: Non-financial undertakings: 20.49% Financial undertakings: 22.12% Value of exposures to financial and non-financial undertakings subject to Articles 19a and 29a of Directive 2013/34/EU: Non-financial undertakings: 2,596,842.1 Financial undertakings: 2,803,551.0 The proportion of exposures to other counterparties and assets over total assets covered by the KPI: 22.54% Value of exposures to other counterparties: 2,857,058.2 The proportion of the insurance or reinsurance undertaking's investments other than investments held in respect of life insurance contracts where the investment risk is borne by the policy holders, that are directed at funding, or are associated with, Taxonomy-aligned economic activities: 15.81% Value of insurance or reinsurance undertaking's investments other than investments held in respect of life insurance contracts where the investment risk is borne by the policy holders, that are directed at funding, or are associated with, Taxonomy-aligned economic activities: 2,003,558.6 The value of all the investments that are funding economic activities that are not Taxonomy-eligible relative to the value of total assets covered by the KPI: Turnover-based: 57.33% Capital expenditures-based: 61.77% Value of all the investments that are funding economic activities that are not Taxonomy-eligible: Turnover-based: 7,266,555.9 Capital expenditures-based: 7,829,392.2 The value of all the investments that are funding Taxonomyeligible economic activities, but not Taxonomy-aligned relative to the value of total assets covered by the KPI: Turnover-based: 7.98% Capital expenditures-based: 6.87% Value of all the investments that are funding Taxonomyeligible economic activities, but not Taxonomy-aligned: Turnover-based: 1,011,907.0 Capital expenditures-based: 871,233.9

Additional breakdown of the KPI numerator
The proportion of Taxonomy-aligned exposures to financial	Value of Taxonomy-aligned exposures to financial and non
and non-financial undertakings subject to Articles 19a and 29a	financial undertakings subject to Articles 19a and 29a of
of Directive 2013/34/EU over total assets covered by the KPI:	Directive 2013/34/EU:
Non-financial undertakings:	Non-financial undertakings:
Turnover-based: 3.12%	Turnover-based: 395,491.2
Capital expenditures-based: 3.95%	Capital expenditures-based: 500,770.0
Financial undertakings:	Financial undertakings:
Turnover-based: 0.15%	Turnover-based: 19,228.1
Capital expenditures-based: 0.15%	Capital expenditures-based: 19,228.1
The proportion of the insurance or reinsurance undertaking's	Value of insurance or reinsurance undertaking's investments
investments other than investments held in respect of life	other than investments held in respect of life insurance
insurance contracts where the investment risk is borne by the	contracts where the investment risk is borne by the policy
policy holders, that are directed at funding, or are associated	holders, that are directed at funding, or are associated with,
with, Taxonomy-aligned:	Taxonomy-aligned economic activities:
Turnover-based: 3.08%	Turnover-based: 390,679.6
Capital expenditures-based: 3.21%	Capital expenditures-based: 407,411.2
The proportion of Taxonomy-aligned exposures to other	Value of Taxonomy-aligned exposures to other counterparties
counterparties in over total assets covered by the KPI:	over total assets covered by the KPI:
Turnover-based: 3.37%	Turnover-based: 15,389.7
Capital expenditures-based: 0.21%	Capital expenditures-based: 936.2

01. General information 03. Social information 05. Business information 07. Annex I - Taxonomy 09. Annex III - ESRS Index 02. Environmental information 04. Governance information 06. Contributing to society 08. Annex II - Law 11/2018 10. External assurance report

Breakdown of the numerator of the KPI per environmental objective (Taxonomy-aligned activities)
1) Climate change mitigation	Turnover: 1.74% CapEx: 4.13%	Transitional activities: A 0.04% (turnover) 0.10% (CapEx) Enabling activities: B 1.15% (turnover) 2.40% (CapEx)
2) Climate change adaptation	Turnover: 0.013% CapEx: 0.006%	Enabling activities: B 0.013% (turnover) 0.0007% (CapEx)

Template 1 Nuclear and fossil gas related activities

Row	Nuclear energy related activities
1	The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative electricity generation facilities that produce energy from nuclear processes with minimal waste from the fuel cycle.	NO
2	The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production, as well as their safety upgrades, using best available technologies.	NO
3	The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production from nuclear energy, as well as their safety upgrades.	Yes
Row	Fossil gas related activities
4	The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that produce electricity using fossil gaseous fuels.	Yes
5	The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and power generation facilities using fossil gaseous fuels.	Yes
6	The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation facilities that produce heat/cool using fossil gaseous fuels.	Yes

Information on Turnover (figures in thousands of euros)

Template 2 Taxonomy-aligned economic activities (denominator)

	Economic activities	Turnover
Row		CCM + CCA		Climate change mitigation (CCM)		Climate change adaptation (CCA)
		Amount	%	Amount	%	Amount	%
1	Amount and proportion of taxonomy aligned economic activity referred to in Section 4.26 of Annexes I and II to (EU) Delegated Regulation 2021/2139 in the denominator of the applicable KPI	€—	—%	€—	—%	€—	—%
2	Amount and proportion of taxonomy aligned economic activity referred to in Section 4.27 of Annexes I and II to (EU) Delegated Regulation 2021/2139 in the denominator of the applicable KPI	€—	—%	€—	—%	€—	—%
3	Amount and proportion of taxonomy aligned economic activity referred to in Section 4.28 of Annexes I and II to (EU) Delegated Regulation 2021/2139 in the denominator of the applicable KPI	€2,882.8	0.05%	€2,882.8	0.05%	€—	—%

Index				Sustainability Report
01. General information	03. Social information	05. Business information	07. Annex I - Taxonomy	09. Annex III - ESRS Index

02. Environmental information 04. Governance information 06. Contributing to society 08. Annex II - Law 11/2018 10. External assurance report

4	Amount and proportion of taxonomy aligned economic activity referred to in Section 4.29 of Annexes I and II to (EU) Delegated Regulation 2021/2139 in the denominator of the applicable KPI	€—	—%	€—	—%	€—	—%
5	Amount and proportion of taxonomy aligned economic activity referred to in Section 4.30 of Annexes I and II to (EU) Delegated Regulation 2021/2139 in the denominator of the applicable KPI	€—	—%	€—	—%	€—	—%
6	Amount and proportion of taxonomy aligned economic activity referred to in Section 4.31 of Annexes I and II to (EU) Delegated Regulation 2021/2139 in the denominator of the applicable KPI	€—	—%	€—	—%	€—	—%
7	Amount and proportion of other taxonomy aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI	€258,280.8	4.29%	€217,749.8	3.61%	€1,668.4	0.03%
8	Total applicable KPI	€261,163.6	4.33%	€220,632.6	3.66%	€1,668.4	0.03%

Template 3 Taxonomy-aligned economic activities (numerator)

		Turnover
Row	Economic activities	CCM + CCA		Climate mitigation (CCM)	change	Climate adaptation (CCA)	change
		Amount	%	Amount	%	Amount	%
1	Amount and proportion of taxonomy aligned economic activity referred to in Section 4.26 of Annexes I and II to (EU) Delegated Regulation 2021/2139 in the numerator of the applicable KPI	€—	—%	€—	—%	€—	—%
2	Amount and proportion of taxonomy aligned economic activity referred to in Section 4.27 of Annexes I and II to (EU) Delegated Regulation 2021/2139 in the numerator of the applicable KPI	€—	—%	€—	—%	€—	—%
3	Amount and proportion of taxonomy aligned economic activity referred to in Section 4.28 of Annexes I and II to (EU) Delegated Regulation 2021/2139 in the numerator of the applicable KPI	€2,882.8	1.10%	€2,882.8	1.10%	€—	—%
4	Amount and proportion of taxonomy aligned economic activity referred to in Section 4.29 of Annexes I and II to (EU) Delegated Regulation 2021/2139 in the numerator of the applicable KPI	€—	—%	€—	—%	€—	—%
5	Amount and proportion of taxonomy aligned economic activity referred to in Section 4.30 of Annexes I and II to (EU) Delegated Regulation 2021/2139 in the numerator of the applicable KPI	€—	—%	€—	—%	€—	—%
6	Amount and proportion of taxonomy aligned economic activity referred to in Section 4.31 of Annexes I and II to (EU) Delegated Regulation 2021/2139 in the numerator of the applicable KPI	€—	—%	€—	—%	€—	—%

02. Environmental information 04. Governance information 06. Contributing to society 08. Annex II - Law 11/2018 10. External assurance report

7	Amount and proportion of other taxonomy aligned economic activities not referred to in rows 1 to 6 above in the numerator of the applicable KPI	€258,280.8	98.90%	€217,749.8	83.38%	€1,668.4	0.64%
8	Total amount and proportion of taxonomy aligned economic activities in the numerator of the applicable KPI	€261,163.6	100.00%	€220,632.6	84.48%	€1,668.4	0.64%

Template 4 Taxonomy-eligible but not taxonomy-aligned economic activities

		Turnover
Row	Economic activities	CCM + CCA		Climate change mitigation (CCM)		Climate adaptation (CCA)	change
		Amount	%	Amount	%	Amount	%
1	Amount and proportion of taxonomy eligible but not taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to (EU) Delegated Regulation 2021/2139 in the denominator of the applicable KPI	€—	—%	€—	—%	€—	—%
2	Amount and proportion of taxonomy eligible but not taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to (EU) Delegated Regulation 2021/2139 in the denominator of the applicable KPI	€—	—%	€—	—%	€—	—%
3	Amount and proportion of taxonomy eligible but not taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to (EU) Delegated Regulation 2021/2139 in the denominator of the applicable KPI	€—	—%	€—	—%	€—	—%
4	Amount and proportion of taxonomy eligible but not taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to (EU) Delegated Regulation 2021/2139 in the denominator of the applicable KPI	€33,021.4	0.55%	€33,021.4	0.55%	€—	—%
5	Amount and proportion of taxonomy eligible but not taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to (EU) Delegated Regulation 2021/2139 in the denominator of the applicable KPI	€2,840.7	0.05%	€2,840.7	0.05%	€—	—%
6	Amount and proportion of taxonomy eligible but not taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to (EU) Delegated Regulation 2021/2139 in the denominator of the applicable KPI	€66.0	—%	€66.0	—%	€—	—%
7	Amount and proportion of other taxonomy eligible but not taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI	€1,006,584.4	16.71%	€782,301.7	12.98%	€195,614.8	3.25%
8	Total amount and proportion of taxonomy eligible but not taxonomy-aligned economic activities in the denominator of the applicable KPI	€1,042,512.6	17.30%	€818,229.8	13.58%	€195,614.8	3.25%

Template 5 Taxonomy non-eligible economic activities

Row	Economic activities	Turnover	%
1	Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI *	€—	—%
2	Amount and proportion of economic activity referred to in row 2 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI *	€—	—%
3	Amount and proportion of economic activity referred to in row 3 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI *	€888,035.3	14.74%
4	Amount and proportion of economic activity referred to in row 4 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI *	€1,282,064.3	21.28%
5	Amount and proportion of economic activity referred to in row 5 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI *	€927,211.0	15.39%
6	Amount and proportion of economic activity referred to in row 6 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI *	€803,044.4	13.33%
7	Amount and proportion of other taxonomy-non-eligible economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI	€821,072.7	13.63%
8	Total amount and proportion of taxonomy-non-eligible economic activities in the denominator of the applicable KPI	€4,721,427.7	78.36%

*Since the distribution of the asset's non-eligibility across its activities is unknown, the non-eligibility of each activity has been determined based on the total non-eligibility of the asset rather than just that associated with each individual activity.

Capex information (figures in thousands of euros)

Template 2 Taxonomy-aligned economic activities (denominator)

		CapEx
Row	Economic activities	CCM + CCA		Climate change mitigation (CCM)		Climate change adaptation (CCA)
		Amount	%	Amount	%	Amount	%
1	Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to (EU) Delegated Regulation 2021/2139 in the denominator of the applicable KPI	€—	—%	€—	—%	€—	—%
2	Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to (EU) Delegated Regulation 2021/2139 in the denominator of the applicable KPI	€—	—%	€—	—%	€—	—%
3	Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to (EU) Delegated Regulation 2021/2139 in the denominator of the applicable KPI	€4,166.4	0.060%	€4,166.4	0.060%	€—	—%
4	Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to (EU) Delegated Regulation 2021/2139 in the denominator of the applicable KPI	€31.8	—%	€31.8	—%	€—	—%
5	Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to (EU) Delegated Regulation 2021/2139 in the denominator of the applicable KPI	€56.0	—%	€56.0	—%	€—	—%

6	Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to (EU) Delegated Regulation 2021/2139 in the denominator of the applicable KPI	€—	—%	€—	—%	€—	—%
7	Amount and proportion of other taxonomy aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI	€544,718.8	8.15%	€519,379.0	7.77%	€774.1	0.01%
8	Total applicable KPI	€548,973.1	8.21%	€523,633.3	7.83%	€774.1	0.01%

Template 3 Taxonomy-aligned economic activities (numerator)

		CapEx
Row	Economic activities	CCM + CCA		Climate mitigation (CCM)	change	Climate change adaptation (CCA)
		Amount	%	Amount	%	Amount	%
1	Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to (EU) Delegated Regulation 2021/2139 in the numerator of the applicable KPI	€—	—%	€—	—%	€—	—%
2	Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to (EU) Delegated Regulation 2021/2139 in the numerator of the applicable KPI	€—	—%	€—	—%	€—	—%
3	Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to (EU) Delegated Regulation 2021/2139 in the numerator of the applicable KPI	€4,166.4	0.76%	€4,166.4	0.76%	€—	—%
4	Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to (EU) Delegated Regulation 2021/2139 in the numerator of the applicable KPI	€31.8	0.01%	€31.8	0.01%	€—	—%
5	Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to (EU) Delegated Regulation 2021/2139 in the numerator of the applicable KPI	€56.0	0.01%	€56.0	0.01%	€—	—%
6	Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to (EU) Delegated Regulation 2021/2139 in the numerator of the applicable KPI	€—	—%	€—	—%	€—	—%
7	Amount and proportion of other taxonomy aligned economic activities not referred to in rows 1 to 6 above in the numerator of the applicable KPI	€544,718.8	99.23%	€519,379.0	94.61%	€774.1	0.14%
8	Total amount and proportion of taxonomy aligned economic activities in the numerator of the applicable KPI	€548,973.1	100%	€523,633.3	95.38%	€774.1	0.14%

Index				Sustainability Report
01. General information	03. Social information	05. Business information	07. Annex I - Taxonomy	09. Annex III - ESRS Index
02. Environmental information	04. Governance information			06. Contributing to society 08. Annex II - Law 11/2018 10. External assurance report

Template 4 Taxonomy-eligible but not taxonomy-aligned economic activities

		CapEx
Row	Economic activities	CCM + CCA		Climate mitigation (CCM)	change	Climate change adaptation (CCA)
		Amount	%	Amount	%	Amount	%
1	Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to (EU) Delegated Regulation 2021/2139 in the denominator of the applicable KPI	€—	—%	€—	—%	€—	—%
2	Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to (EU) Delegated Regulation 2021/2139 in the denominator of the applicable KPI	€—	—%	€—	—%	€—	—%
3	Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to (EU) Delegated Regulation 2021/2139 in the denominator of the applicable KPI	€—	—%	€—	—%	€—	—%
4	Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to (EU) Delegated Regulation 2021/2139 in the denominator of the applicable KPI	€9,350.5	0.14%	€9,350.5	0.14%	€—	—%
5	Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to (EU) Delegated Regulation 2021/2139 in the denominator of the applicable KPI	€419.6	0.01%	€419.6	0.01%	€—	—%
6	Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to (EU) Delegated Regulation 2021/2139 in the denominator of the applicable KPI	€—	—%	€—	—%	€—	—%
7	Amount and proportion of other taxonomy eligible but not taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI	€840,259.5	12.57%	€712,135.3	10.66%	€25,558.1	0.38%
8	Total amount and proportion of taxonomy eligible but not taxonomy-aligned economic activities in the denominator of the applicable KPI	€850,029.6	12.72%	€721,905.4	10.80%	€25,558.1	0.38%

Template 5 Taxonomy non-eligible economic activities

Row	Economic activities	CapEx	%
1	Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy non-eligible in accordance with Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI *	€—	—%
2	Amount and proportion of economic activity referred to in row 2 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI *	€—	—%
3	Amount and proportion of economic activity referred to in row 3 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI *	€590,296.1	8.83%
4	Amount and proportion of economic activity referred to in row 4 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI *	€1,226,592.8	18.35%
5	Amount and proportion of economic activity referred to in row 5 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI *	€948,006.1	14.80%
6	Amount and proportion of economic activity referred to in row 6 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI *	€195,713.7	2.93%
7	Amount and proportion of other taxonomy-non-eligible economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI	€2,323,655.3	34.77%
8	Total amount and proportion of taxonomy-non-eligible economic activities in the denominator of the applicable KPI	€5,284,264.0	79.07%

The amounts in terms of CapEx and Turnover in the tables "Additional numerator breakdown", "Template 2", "Template 3", "Template 4" and "Template 5", have been calculated using the eligibility and alignment percentages obtained in Clarity with respect to the amount of the investment.

Eligibility and underwriting alignment according to EU Taxonomy

Under Delegated Regulation (EU) 2021/2178 and its amendments (published in June and November of 2023), the indicators to be developed by insurance and reinsurance companies in relation to their activities are explained. In order to calculate these indicators, the information has been extracted from the non-life insurance activity and from the reinsurance activity.

						Do No Significant Harm (DNSH)
Economic activities	Absolute premiums, year 2024	Proportion of premiums, year 2024	Proportion of premiums, year 2023	Mitigating climate change	Water and marine resources	Circular economy	Pollution	Biodiversity and ecosystems	Minimum safeguards
	Thousand €	%	%	Y/N	Y/N	Y/N	Y/N	Y/N	Y/N
A.1. Non-life insurance and reinsurance underwriting Taxonomy-aligned activities (environmentally sustainable)	174,424.3	3.80%	3.23%	Y	Y	Y	Y	Y	Y
A.1.1 Of which reinsured	N/A	N/A	N/A	-	-	-	0	-	-
A.1.2 Of which stemming from reinsurance activity	N/A	N/A	N/A	-	-	-	-	-	-
A1.2.1 Of which reinsured (retrocession)	N/A	N/A	N/A	-	-	-	-	-	-
A.2. Non-life insurance and reinsurance underwriting Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy aligned activities)	718.5	—%	—%
B. Non-life insurance and reinsurance underwriting Taxonomy-non-eligible activities	4,389,312.4	96.20%	96.55%
Total (A.1 + A.2 + B)	4,564,455.2	100.0%	100.0%

Index				Sustainability Report
01. General information	03. Social information	05. Business information	07. Annex I - Taxonomy	09. Annex III - ESRS Index
02. Environmental information	04. Governance information			06. Contributing to society 08. Annex II - Law 11/2018 10. External assurance report

Qualitative information on eligibility and underwriting alignment indicators following the EU Taxonomy

For the eligibility analysis, all non-life business in the scope of the GCO study was thoroughly analysed. The study identified the classes of business that directly provide cover for at least one weather risk based on the table in Appendix A to Delegated Regulation (EU) 2021/2139. The eligible premium volume takes into account premiums related exclusively to one weather risk.

In order to calculate the information reported, the information obtained from the Group's various information management systems has been used. The information found in each of these systems is at a different level of granularity and it has not always been possible to identify the premium linked to weather risks. As a result, there are two different situations depending on the information available:

• • Breakdown of the premium at the guarantee level: in these cases the eligible premium has been obtained by applying the percentage of weather coverage to the total premium of the policy. To this end, only guarantees related to atmospheric phenomena have been selected.
• • Historical series of claims: in cases in which it has not been possible to break down the premium by guarantees, but it has been possible to identify the presence of weather cover, an approximation has been made based on claims data.

Since the entry into force of Regulation (EU) 2020/852 and the obligation to report eligibility and alignment indicators with the Taxonomy, GCO has actively worked on adapting our products to maximise compliance with the Technical Selection Criteria (TSC). Additionally, data collection and analysis capabilities have been improved through the use of specialised tools such as SAS, which allow for more precise evaluation of the eligibility and alignment of our premiums with the objectives of the Taxonomy. These improvements contribute to better traceability of the reported information, optimising the information flow between data platforms and the required reporting templates, facilitating more consistent, transparent, and auditable tracking.

The calculation of the alignment involves analysing three blocks:

• 1. Technical Selection Criteria (TSC): compliance has been thoroughly analysed for each of the eligible lines of business obtained above. The Taxonomy information for GCO's TSC analysis was collected by completing questionnaires supported by a solid evidence base. Below is a description of how the company complies with each TSC:
  2. TSC 1.1: the insurance activity uses advanced modelling techniques through prospective climate scenario analysis conducted by the Risk Area.
  3. TSC 1.2: GCO publicly discloses how it takes climate risks into account in its Sustainability Report.
  4. TSC 1.3: climate coverage is pre-established as a default, regardless of the insurance type, encouraging its purchase and ensuring risk reduction.
  5. TSC 1.4: after a climate risk event, the company has a procedure to assess and contact the customer based on the claims experience to establish renewal conditions.
  6. TSC 2.1: premium pricing establishes a lower premium based on available preventive measures (e.g., in home insurance, if the property is finished with heat- and fire-resistant materials, the exposure to risk is lower, thus resulting in a lower premium).
  7. TSC 2.2: the company provides articles, commercial notes and information on its website regarding preventive measures that can be adopted to reduce risk.
  8. TSC 3.1: the products in the lines considered in the eligibility and alignment indicators include coverage for climate-related phenomena.
  9. TSC 3.2: the product terms include coverage related to secondary effects arising from natural risks (for example: secondary effects of fires resulting from smoke, vapours, dust, etc.).
  10. TSC 4.1 and 4.2: GCO shares information with the Insurance Compensation Consortium free of charge.
  11. TSC 5: the company has internal procedures in place that allow for a high level of service in the event of largescale claims, and informs brokers and customers about the available channels to report a claim.
• 1. DNSH criteria: in order to fulfil this criterion, the volume of eligible premiums obtained from customers with fossil fuel-related NACE's has been extracted from the volume of eligible premiums.
• 1. MSS criteria: GCO fulfils the Minimum Social Safeguards as set out in the due diligence procedures and policies, including those required by the taxonomy regarding respect for and compliance with the following principles and statements:
  2. OECD Guidelines for Multinational Enterprises
  3. ILO Declaration on Fundamental Principles and Rights at Work
  4. UN Guiding Principles on Business and Human Rights
  5. International Bill of Human Rights

On the basis of the information obtained from the above analysis, the percentage of alignment of eligible bonuses has been calculated.

The data used to calculate the KPIs correspond to the data included in GCO's Consolidated Directors' Report (based on IFRS 4). Reconciliation with the figures included in the financial statements (based on IFRS 17 standards) is provided in Note 18, Financial Information by Segment in the Annual Accounts Report 2024 of GCO.

Finally, it is important to highlight that the implementation of the Taxonomy has resulted in a structural change in the way we operate, promoting a more sustainable approach to underwriting activity. Significant progress has been made in adapting products and optimising processes. However, GCO will continue to work towards overcoming the operational and methodological challenges posed by this regulatory framework.

08.

08. Annex II – Additional information Law 11/2018

Additional information Law 11/2018

Social and employees matters

		2023		2024
Distribution by employment category and gender	Men	Women	Total	Men	Women	Total
Administrative support	1,084	1,157	2,241	1,135	1,278	2,413
Qualified administration and sales staff	2,274	2,371	4,645	2,215	2,436	4,651
Middle management and technical supervision	1,178	623	1,801	1,076	636	1,712
Executives	142	29	171	125	27	152
Total	4,678	4,180	8,858	4,551	4,377	8,928

		2023			2024
Distribution by contract type and age	< 30 years	30-50 years	> 50 years	Total	< 30 years	30-50 years	> 50 years	Total
Permanent – Full-time	570	3,895	3,259	7,724	659	3,926	3,096	7,681
Permanent – Part-time	29	492	342	863	40	555	430	1,025
Temporary – Full-time	105	87	16	208	79	69	14	162
Temporary – Part-time	25	28	10	63	16	32	12	60
Total	729	4,502	3,627	8,858	794	4,582	3,552	8,928

	2023 2024
Distribution by contract type and employment category	Admin. support	Qualified administration and sales staff	Middle management and technical supervision	Executives	Total	Admin. support	Qualified administration and sales staff	Middle management and technical supervision	Executives	Total
Permanent – Full-time	1,695	4,133	1,728	168	7,724	1,822	4,077	1,631	151	7,681
Permanent – Part-time	354	436	70	3	863	417	533	74	1	1,025
Temporary – Full-time	138	69	1	0	208	121	37	4	0	162
Temporary – Part-time	54	7	2	0	63	53	4	3	0	60
Total	2,241	4,645	1,801		171 8,858	2,413	4,651	1,712	152	8,928

		2023		2024
Redundancies by age and gender	Men	Women	Total	Men	Women	Total
< 30 years	12	4	16	9	5	14
30-50	43	36	79	47	33	80
> 50 years	25	14	39	16	13	29
Total	80	54	134	72	51	123

		2023			2024
Redundancies by professional category and gender	Men	Women	Total	Men	Women	Total
Administrative support	40	31	71	31	26	57
Qualified administration and sales staff	27	17	44	20	20	40
Middle management and technical supervision	11	5	16	17	4	21
Executives	2	1	3	4	1	5
Total	80	54	134	72	51	123

		2023		2024
Training by professional category and gender	Men	Women	Total	Men	Women	Total
Administrative support	17,839	23,891	41,730	27,039	32,834	59,873
Qualified administration and sales staff	50,147	54,966	105,113	51,121	50,918	102,039
Middle management and technical supervision	33,790	20,795	54,584	29,327	21,415	50,742
Executives	3,073	1,089	4,162	2,665	683	3,348
Total	104,849	100,740	205,589	110,152	105,850	216,002

Index				Sustainability Report
01. General information	03. Social information	05. Business information	07. Annex I - Taxonomy	09. Annex III - ESRS Index

02. Environmental information 04. Governance information 06. Contributing to society 08. Annex II - Law 11/2018 10. External assurance report

Average remuneration by professional category and gender and wage gap 2023				Average remuneration by age and gender and wage gap
Administrative support	Men	27,113		Men	33,059
	Women	26,853	< 30 years	Women	30,016
	Ratio W/M	99 %		Ratio W/M	91 %
Qualified administration and sales staff	Men	54,153		Men	44,338
	Women	46,652	30-39 años	Women	37,728
	Ratio W/M	86 %		Ratio W/M	85 %
Middle management and technical supervision	Men	82,368		Men	56,039
	Women	68,281	40-49 years	Women	45,260
	Ratio W/M	83 %		Ratio W/M	81 %
Executives	Men	170,316		Men	70,188
	Women	152,736	> 50 years	Women	52,813
	Ratio W/M	90 %		Ratio W/M	75 %

The information on average remuneration by gender and pay gap for the financial year 2023 is reported on the basis of the criteria used in GCO's Sustainability Report - Non-Financial Information Statement 2023, in accordance with the criteria established by Law 11/2018 and the GRI reporting standard. The average remuneration is calculated based on the number of employees and the pay gap has been calculated as the average remuneration of women divided by the average remuneration of men.

Average remuneration by professional category and gender		2024 gender and wage gap		Average remuneration by age and	2024
	Men	16.2		Men	18.9
Administrative support	Women	15.8	< 30 years	Women	16.6
	Wage gap	2.5 %		Wage gap	12.1 %
Qualified administration and sales staff	Men	31.4		Men	29.6
	Women	26.9	30-50 years	Women	24.6
	Wage gap	14.4 %		Wage gap	16.7 %
Middle management and technical supervision	Men	48.8		Men	42.1
	Women	40.1	> 50 years	Women	30.5
	Wage gap	17.7 %		Wage gap	27.7 %
Executives	Men	116.6
	Women	86.8
	Wage gap	25.5 %

The information on average remuneration by gender and pay gap for the financial year 2024 is in line with the CSRD, calculating the average remuneration per hour worked and the pay gap as the ratio of the difference between the average remuneration of men and the average remuneration of women to the average remuneration of men.

Remuneration of directors* (figures in thousands of euros)	2023	2024
Average non-executive directors men	315.8	242.8
Average non-executive directors women	197.6	230.1
Average executive directors men**	1,237.3	1,293.5
Total remuneration of directors	3,725.0	3,440.7

*This includes the remuneration of executive and non-executive directors of the Company both in this and in the other Group companies. **Refers to the company's sole executive director. Information on the average number of female executive directors is not included, since this position is not held by a female executive director.

	2023		2024
Accident rate indicators	Men	Women	Men	Women
No. of accidents with sick leave	26	27	60	37
No. of days lost due to accident with leave	749	1,093	2,606	1,016
No. of hours actually worked	7,919,311	7,071,331	7,314,312	6,984,592
No. of deaths (as a result of a work accident)	0	0	0	0
No. of professional illnesses detected	0	0	0	0
Frequency index**	3.28	3.82	8.2	5.3
Severity index***	0.09	0.15	0.4	0.1
Death rate****	0	0	0	0
Absenteeism	2023 2024
Hours of absenteeism	585,505		607,259

* The hours worked have been reported according to the collective agreement to standardise the criteria between Occident and Atradius.

**Frequency index: No. of accidents with sick leave/no. of hours actually worked) * 1,000,000 *** Severity index = (No. of lost days due to accidents with sick leave / no. of hours actually worked) * 1,000

**** Fatality rate = (No. of fatalities due to work accidents / no. of hours actually worked) * 1,000,000

Index				Sustainability Report
01. General information	03. Social information	05. Business information	07. Annex I - Taxonomy	09. Annex III - ESRS Index
02. Environmental information	04. Governance information			06. Contributing to society 08. Annex II - Law 11/2018 10. External assurance report

Society

Economic value generated and distributed (figures in millions of euros)		2023	2024
Economic value distributed		4,987.1	5,065.0
Customers	Payment of the insured benefits upon occurrence of the damage or eventuality foreseen in the insurance contracts.	2,992.3	2,940.2
Public administrations	Payment of taxes (social security contributions, corporate income tax, surcharges levied and input VAT.	646.3	724.8
Intermediaries	Payment of commissions to agents and brokers for services provided.	643.3	689.9
Employees	Staff expenses (salaries, employee benefits, training, etc.).	576.2	568.6
Shareholders	Dividends paid by the Group to shareholders.	126.6	137.6
Foundations and non-profit organisations	Contributions of Group companies made to foundations and non-profit organisations.	2.4	3.9
Economic value retained		67.5	126.0
Direct economic value generated		5,054.6	5,191.1

Profit and taxes by country		2023			2024
(figures in millions of euros)	Profit	Tax accrued	Tax paid	Profit	Tax accrued	Tax paid
Spain	392.1	82.5	133.5	509.8	108.1	114.5
Netherlands	18.2	5.8	-1.2	27.9	19.8	7.4
Germany	81.9	27.3	7.1	68.3	22.6	7.3
United Kingdom	29.4	7	8.5	50.3	13.2	13.2
Belgium	35.9	9.1	6.9	29.6	7.6	10.5
France	33.3	8.7	8.7	16.9	4.3	5.8
Italy	37	7	8.2	29.7	8.3	6.4
United States	18.5	4.2	4.9	23.1	5.1	5.7
Denmark	10.5	2.3	0.2	-1.4	0	1.9
Australia	9.9	3	5.9	13.3	5.1	2.4
Portugal	7	2.6	3.1	7.2	2.4	2.3
Hong Kong	18.5	2.8	0	34.4	2.6	3.1
Ireland	42.9	5	18.4	21.4	2.8	6.3
Greece	5.8	1.3	1.3	4.8	1.1	2.1
Norway	7.1	1.8	1.6	2.4	0.6	1.5
Russia	2.7	0.1	0.4	-0.1	0	0
Switzerland	7.4	1.4	1.3	24.3	5.2	2
Rest of Europe	22.1	2.8	4.9	21.4	5.9	1.5
Rest of OECD	14.5	4.5	3.9	16.1	5.7	4.5
Rest of the World	3.5	3.8	2.9	23.3	4.9	1.8
Total	798.2	183	220.5	922.7	225.2	200.1

Environmental matters

Emissions	2023
Scope 1 (Tn CO2 )	20,786.8
Scope 2 (Tn CO2 )	2,151.7
Total Scope 1 and 2
Scope 3 (Tn CO2 )	9,876.3
-Goods and services purchased (paper and coffins)	202.9
-Fuel and electricity activities (not included in Scopes 1 and 2)	5,404.0
-Business travel (rail, air)	4,269.4
Total Scope 1, 2 and 3	32,814.8

Non-Financial Information Statement (NFIS) content index

The following table contains the pages of this Report in which the information required by Spanish Law 11/2018, of 28 December, on non-financial information and diversity, can be found.

INFORMATION REQUESTED BY LAW 11/2018		REPORTING/ REFERENCE FRAMEWORK	PAGE OR DIRECT RESPONSE
General Information
Business model	Brief description of the group's business model (business environment and organisation) Geographical presence Objectives and strategies of the organisation Main factors and trends that could affect its future performance	ESRS 2 MDR-P, ESRS 2 SBM-1, E1-2, E1-4, S1-1, S1-5, S1-6, S2-1, S2-5, S4-1, S4-5, G1-1	60, 61, 69, 78, 79, 80, 82, 83, 84, 85, 89, 91, 95, 97, 101, 108 and 109
Policies	Description of the policies applied by the Group regarding these issues, including due diligence procedures applied for identifying, assessing, preventing and mitigating significant risks and impacts, and verification and control procedures, including what measures have been adopted.	ESRS 2 MDR-P, E1-2, S1-1, S2-1, S4-1, G1-1	60, 69, 78, 79, 89, 95, 101, 108 and 109
Results of the policies	The results of those policies, including relevant non financial KPIs to enable monitoring and assessment of progress and to support comparability across companies and sectors, in line with the national, European or international frameworks used.	ESRS 2 MDR-P, MDR M, E1-2, E1-3, E1-4, S1-1, S1-3, S1-4 ,S1-5, S4-1, S4-3, S4-4, S4-5, G1-1, G1-2, G1-3, G1-5	60, 69, 70, 71, 78, 79, 80, 81, 82, 83, 84, 85, 89, 90, 93, 95, 97, 98, 101, 108, 109, 115 and 118
Risks	The main risks related to those issues linked to the group's activities, including, where relevant and proportionate, its business relationships, products or services that may have negative effects in these fields and how the group manages these risks, explaining the procedures used to detect and evaluate them in accordance with the national, European or international reference frameworks for each area. Information must be included on any impacts detected, with a breakdown of the impacts, in particular the main short-, medium- and long-term risks.	ESRS 2 GOV-5 ESRS 2 IRO-1 ESRS 2 SBM-3	59, 60, 63, 66, 67, 68, 75, 76, 77, 78 87, 88, 89, 93, 94, 99, 100, 101, 102, 107, 108, 110 and 113
Reporting framework	Mention in the report of the national, European or international reporting framework used for the selection of key indicators of non-financial results included in each section	ESRS 2 BP-1 ESRS 2 BP-2	54 and 57
Information about environmental matters
	Current and forecast effects of the company's activities on the environment and, where appropriate, health and safety	ESRS 2 GOV 5, ESRS 2 IRO-1, SBM-3 E1	59, 60, 63, 66, 67 and 68
	Environmental assessment or certification procedures	E1-1	66 and 71
Environmental management	Resources assigned to the prevention of environmental risks Application of the principle of precaution Amount of provisions and guarantees for environmental risks	ESRS 2 GOV-1, ESRS 2 SBM3, E1-2, E1-3	57, 66, 67, 68 and 69
Pollution	Measures to prevent, reduce or repair emissions that seriously affect the environment; taking into account any form of activity-specific air pollution, including noise and light pollution	E1-1, E1-3	66 and 69
Circular economy and prevention and management	Circular Economy and actions on prevention, recycling, reuse, other forms of recovery and disposal of waste		Not material
of waste	Actions to combat food waste		Not material
Sustainable utilization of	Consumption and supply of water according to local restrictions		Not material
	Consumption of raw materials and measures taken to improve the efficiency of their use		Not material
resources	Direct and indirect energy consumption	E1-5	71
	Measures taken to improve energy efficiency	E1-3	69
	Use of renewable energies	E1-5	71

Index				Sustainability Report
01. General information	03. Social information	05. Business information	07. Annex I - Taxonomy	09. Annex III - ESRS Index

02. Environmental information 04. Governance information 06. Contributing to society 08. Annex II - Law 11/2018 10. External assurance report

	Significant elements of greenhouse gas emissions generated as a result of the company's activities, including the use of the goods and services it produces	E1-6, GRI 305-1, GRI 305-2, GRI 305-2	71 and 141
Climate Change	Measures adopted to adapt to the consequences of climate change	E1-1, E1-3	66 and 69
	Reduction targets voluntarily established in the medium and long-term to reduce greenhouse gas emissions and the measures implemented for this purpose	E1-4	70
	Measures taken to preserve or restore biodiversity		Not material
Protection of Biodiversity	Impacts caused by activities or operations in protected
	areas		Not material
Information on social and staff-related matters
	Total number and distribution of employees by gender, age, country and professional classification	S1-6, GRI 2-7, 405-1	80, 81 and 141
	Total number and distribution of employment contract types, annual average of permanent contracts, temporary contracts and part-time contracts by gender, age and professional classification	S1-6, GRI 2-7, 405-1	80, 81 and 141
	Number of dismissals by gender, age and professional category	GRI 2-7, 401-1	141
Employment	Average remuneration and its evolution disaggregated by gender, age and occupational classification or equal value	S1-16, GRI 405-2	142
	Pay gap, the remuneration of equal or average jobs in the company.	S1-16, GRI 405-2	85, 86 and 142
	Average remuneration of directors and executives, including variable remuneration, allowances, compensation and payment into long-term savings benefit systems and any other payment broken down by gender	GRI 405-2	142
	Implementation of policies on the right to disconnect	S1-1	78 and 79
	Employees with a disability	S1-12	82
	Organisation of the working time	S1-1, S1-15	78, 79 and 85
	Number of hours of absenteeism
Work organization	Measures to facilitate work and private life balance and to encourage shared responsibility by both parents.	S1-4, S1-15, GRI 403-9, 403-10	79, 80, 85 y 142
	Health and safety at work conditions	S1-14	84
Health and safety	Work-related accidents, in particular their frequency and severity, as well as occupational diseases; disaggregated by gender.	S1-14, GRI 403-9, 403-10	84 and 142
	Organising social dialogue, including procedures for informing, consulting and negotiating with staff;	S1-2, S1-8	79 and 81
	Percentage of employees covered by collective workers agreements by country	S1-8	81
Social relations.	Balance of collective bargaining agreements, especially in the field of occupational health and safety.	S1-8, S1-14	81 and 84
	Mechanisms and procedures that the company has in place to encourage worker involvement in managing the company, in terms of information, consultation and participation.	S1-2, S1-8	79 and 81
	Policies implemented in the field of training	S1-13	83
Training	Total number of training hours by professional classification	S1-13, GRI 404-1	83 and 141
Universal access for disabled people	Universal access for disabled people	S1-12	82
	Measures adopted to promote equal treatment and opportunities for men and women	S1-4, S1-9	78, 79 and 82
Equality	Equality plans (Chapter III of Organic Law 3/2007, of 22 March, for effective gender equality), measures taken to promote employment, protocols against sexual and gender based harassment, integration and universal accessibility for people with disabilities	S1-1, S1-4, S1-5, S1-9, S1-12	75, 78, 79 and 82
	Policy against any type of discrimination and, where necessary, management of diversity	S1-1	78 and 79
Information on respecting human rights

Application of due diligence procedures	Application of due diligence procedures regarding human rights; prevention of risks of human rights violations and, where applicable, measures to mitigate, manage and redress possible abuses committed	ESRS 2 GOV-2, ESRS 2 GOV 4, ESRS 2 GOV 3, ESRS 2 SBM 3, ESRS 2 SBM-2, ESRS 2 IRO-1, ESRS 2 MDR-P, ESRS 2 MDR-M, ESRS 2 MDR.T, ESRS S1, S2, S4 y G1	58, 59, 62, 63, 66, 68, 69 , 70, 75, 78, 79, 80, 87, 89, 90, 91, 93, 95, 99, 107, 108, 109, and 114
	Complaints relating to cases of human rights violations	S1-17, S2-4, S4-4	86, 92, 96 and 101
	Promoting and complying with the provisions of the core conventions of the International Labour Organisation related to respect for freedom of association and the right to collective bargaining; Eliminating discrimination in employment and occupation; The elimination of forced or compulsory labour; The effective abolition of child labour.	S1-1, S2-1	78, 79 and 89
Information on the fight against corruption and bribery
Information on the fight	Measures implemented to prevent corruption and bribery	G1-3 G1-4	101 y 102
against corruption and	Measures to combat money laundering	G1-3, G1-4	102
bribery	Contributions made to foundations and non-profit organisations	GRI 413-1	117 y 143
Company information
	The impact of the company's activity on local employment and development	S2-4	91, 92 y 143
Commitment by the company to sustainable development	The impact of the company's activity on local populations and the region.	MDR-M, MDR-A y MDR -T	113 - 117 y 143
	Relationships with members of the local communities and the types of dialogue with them	NEIS 2 SBM-2	62
	Inclusion of social, gender equality and environmental matters in procurement policies	S2-1, MDR-P	89
Subcontracting and suppliers	Consideration of their social and environmental responsibility in relationships with suppliers and subcontractors	S2-2, S2-3, S2-4	89, 90, 91 and 92
	Supervision and audit systems, and their results	S2-2, S2-3, S2-4	89, 90, 91 and 92
Consumers	Measures for the health and safety of consumers	S4-1 y S4-4	95 and 96
	Complaints systems	S4-4	96 and 97
	Complaints received and their resolution	S4-3, S4-4	95, 96 and 97
Tax information	Profits obtained country by country	GRI 207-4, 201-4	143
	Tax paid on profits	GRI 207-4, 201-4	143
	Information on public subsidies received	GRI 207-4, 201-4	In 2024, Grupo Catalana Occidente S.A. did not receive any public subsidies (no subsidies received in 2023).

09.

09. Annex III - Content Index as per ESRS (ESRS 2 IRO 2)

Content Index as per ESRS (ESRS 2 IRO-2)

The following table outlines the pages in this Report where the information required by Commission Delegated Regulation (EU) 2023/2772 of 31 July 2023, which supplements Directive 2013/34/EU of the European Parliament and Council regarding Sustainability Reporting Standards, can be found.

DISCLOSURE REQUIREMENTS		CONTENT	PAGE OR DIRECT RESPONSE
CROSS-CUTTING STANDARDS
ESRS 1 General requirements
ESRS 2 General information
Basis for the preparation	BP-1	General basis for preparation of sustainability statements	57
	BP-2	Disclosures in relation to specific circumstances	57
	GOV-1	The role of the management, executive, and supervisory bodies	57 and 58
	GOV-2	Information provided to and sustainability matters addressed by the undertaking's administrative, management and supervisory bodies	58
Governance	GOV-3	Integration of sustainability-related performance in incentive schemes	59
	GOV-4	Statement on due diligence	59
	GOV-5	Risk management and internal controls over sustainability reporting	59 and 60
	SBM-1	Strategy, business model, and value chain	60, 61, 80 and 81
	SBM-2	Interests and views of stakeholders	62
Strategy	SBM-3	Material impacts, risks and opportunities and their interaction with strategy and business model	66, 67, 68, 75, 76, 77, 78, 87, 88, 89, 93, 94, 95, 100, 101 and 102
	IRO-1	Description of the processes to identify and assess material impacts, risks and opportunities	63 and 68
Management of impacts, risks	IRO-2	Disclosure requirements in ESRS covered by the undertaking's sustainability statement	148 , 149 and 150
and opportunities	MDR-P	Policies adopted to manage material sustainability matters	60, 69, 78, 79, 89, 95, 101 and 108
	MDR-A	Actions and resources in relation to material sustainability matters	66, 67, 68, 69, 70, 75, 76, 77, 78, 79, 80, 87, 88, 89, 91, 92, 93, 94, 95, 99, 100, 101, 107, 108, 110 and 113
Metrics and targets	MDR-M	Metrics in relation to material sustainability matters	70, 71, 72, 80,81, 82, 83, 84, 85, 86, 90, 91, 92, 96, 97, 108, 111, 114, 115 and 116
	MDR-T	Tracking effectiveness of policies and actions through targets	70, 71, 80, 81, 90, 96, 97, 108, 111 and 114
ENVIRONMENTAL THEMATIC STANDARDS
ESRS E1 Climate change
Governance	ESRS 2 GOV-3	Integration of sustainability-related performance in incentive schemes	59
Strategy	RD E1-1	Transition plan to mitigate climate change	66
	ESRS 2 SBM-3	Material impacts, risks and opportunities and their interaction with strategy and business model	66, 67 and 68
Management of incidents, risks and opportunities	ESRS 2 IRO-1	Description of the processes to identify and assess material climate-related impacts, risks and opportunities	68
	RD E1-2	Policies related to climate change mitigation and adaptation	69
	RD E1-3	Actions and resources aligned with climate change policies	69 and 70

Index Sustainability Report 01. General information 03. Social information 05. Business information 07. Annex I - Taxonomy 09. Annex III - ESRS Index 02. Environmental information 04. Governance information 06. Contributing to society 08. Annex II - Law 11/2018 10. External assurance report

Metrics and targets	RD E1-4	Targets related to climate change mitigation and	70 and 71
	RD E1-5	adaptation Energy consumption and mix	71
	RD E1-6	Gross GHG emissions (Scopes 1, 2, and 3) and total GHG	71 and 72
		emissions
	RD E1-7	GHG removals and GHG mitigation projects financed through carbon credits	GCO does not carry out GHG mitigation projects by issuing or purchasing carbon credits
	RD E1-8	Internal carbon pricing system	GCO does not have an internal carbon pricing system
	RD E1-9	Financial impacts of material physical and transition risks and potential opportunities related to climate change	Pursuant to Appendix C of the Commission Delegated Regulation (EU) 2023/2772 of 31 July 2023 supplementing Directive 2013/34/ EU of the European Parliament and of the Council as regards sustainability reporting rules, this information is not reported in the first year of implementation of the CSRD (financial year 2024).
ESRS E2 Pollution			Not material
ESRS E3 Water and marine resources			Not material
ESRS E4 Biodiversity and ecosystems			Not material
ESRS E5 Use of resources and circular economy			Not material
SOCIAL THEMATIC STANDARDS
ESRS S1 Own staff
	ESRS 2 SBM-2	Interests and views of stakeholders	62
Strategy	ESRS 2 SBM-3	Material impacts, risks and opportunities and their interaction with strategy and business model	66, 75, 76, 77 and 78
	RD S1-1	Policies related to own workforce	78 and 79
	RD S1-2	Processes for engaging with own workers and workers' representatives about impacts	79 and 80
Management of impacts, risks and opportunities	RD S1-3	Processes to remediate negative impacts and channels for own workers to raise concerns	79 and 80
	RD S1-4	Taking action on material impacts on own workforce, and approaches to mitigating material risks and pursuing material opportunities related to own workforce, and effectiveness of those actions	75, 76, 77, 78, 79 and 80
	RD S1-5	Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities	82, 83, 84 and 85
	RD S1-6	Characteristics of the undertaking's employees	80 and 81
	RD S1-7	Characteristics of non-employee workers in the undertaking's own workforce	81
	RD S1-8	Collective bargaining coverage and social dialogue	81
	RD S1-9	Diversity metrics	82
Metrics and targets	RD S1-10	Adequate wages	82
	RD S1-11	Social protection	82
	RD S1-12	Persons with disabilities	82
	RD S1-13	Training and skills development metrics	83
	RD S1-14	Health and safety metrics	84
	RD S1-15	Work-life balance metrics	85
	RD S1-16	Compensation metrics (pay gap and total compensation)	85 and 86
	RD S1-17	Incidents, complaints and severe human rights impacts	86
ESRS S2 Workers in the value chain
	ESRS 2 SBM-2	Interests and views of stakeholders	62
Strategy	ESRS 2 SBM-3	Material impacts, risks and opportunities and their interaction with strategy and business model	87, 88 and 89

Index Sustainability Report 01. General information 03. Social information 05. Business information 07. Annex I - Taxonomy 09. Annex III - ESRS Index 02. Environmental information 04. Governance information 06. Contributing to society 08. Annex II - Law 11/2018 10. External assurance report

Management of impacts, risks	RD S2-1	Policies related to value chain workers	89
	RD S2-2	Processes for engaging with value chain workers about impacts	89 and 90
	RD S2-3	Processes to remediate negative impacts and channels for value chain workers to raise concerns	89 and 90
and opportunities	RD S2-4	Taking action on material impacts on value chain workers, and approaches to managing material risks and pursuing material opportunities related to value chain workers, and effectiveness of those actions	87,88, 89, 91 and 92
Metrics and targets	RD S2-5	Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities	91 and 92
ESRS S3 Groups Affected			Not material
ESRS S4 Consumers and End Users
	ESRS 2 SBM-2	Interests and views of stakeholders	62
Strategy	ESRS 2 SBM-3	Material impacts, risks and opportunities and their interaction with strategy and business model	93 and 94
	RD S4-1	Policies related to consumers and end-users	95 and 96
	RD S4-2	Processes for engaging with consumers and end-users about impacts	95 and 96
Management of impacts, risks and opportunities	RD S4-3	Processes to remediate negative impacts and channels for consumers and end-users to raise concerns	95 and 96
	RD S4-4	Taking action on material impacts on consumers and end users, and approaches to managing material risks and pursuing material opportunities related to consumers and end-users, and effectiveness of those actions	93, 94, 95, 96 and 97
Metrics and targets	RD S4-5	Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities	97
THEMATIC GOVERNANCE STANDARDS
ESRS G1 Business conduct
Governance	ESRS 2 GOV-1	The role of the management, executive, and supervisory bodies	57
	ESRS 2 IRO-1	Description of the processes to identify and assess material impacts, risks and opportunities	63
Management of impacts, risks and opportunities	RD G1-1	Corporate culture and business conduct policies	101
	RD G1-2	Management of relationships with suppliers	Included in ESRS S2
	RD G1-3	Prevention and detection of corruption and bribery	101, 102, 103 and 104
	RD G1-4	Confirmed cases of corruption or bribery	101, 102, 103 and 104
Metrics and targets	RD G1-5	Political influence and lobbying activities	Not material
	RD G1-6	Payment practices	103
OTHER MATERIAL ISSUES NOT RELATED TO ESRS
Responsible management of products and services			105
Sustainable investment			109
Contributing to society			113

EU Regulation 2020/852 on Taxonomy indicators

Information requested by (EU) Regulation 2020/852, on Taxonomy		References used	Page
Asset indicators	Template: Proportion of insurance or reinsurance companies' investments aimed at financing activities aligned with the Taxonomy or related activities, in relation to total investments	Regulation (EU) 2020/852, on Taxonomy	119
Non-life insurance premium indicators	Template: Key performance indicator for underwriting of non life insurance and reinsurance companies	Delegated Regulation (EU) 2021/2178, of the Commission, supplementing Regulation (EU) 2020/852, on Taxonomy - ANNEXES IX and X	137
Qualitative information	Qualitative information for market understanding of asset indicators and non-life insurance premium indicators.	Delegated Regulation (EU) 2021/2178, of the Commission, supplementing Regulation (EU) 2020/852, on Taxonomy - ANNEX XI	138
Information on nuclear energy and fossil gas	Standardised templates for disclosing exposure to the nuclear energy and fossil gas sectors	Delegated Regulation (EU) 2022/1214, of the Commission, supplementing Regulation (EU) 2021/2178, on Taxonomy - ANNEX III	122

List of indicators included in ESRS derived from other EU legislation

(ESRS 2 - Appendix B)

Disclosure requirement and related data points	Reference to the Regulation on the disclosure of sustainability-related information in the financial services sector	Pillar 3 reference	Reference of the Regulation on reference indices	Reference to the European Climate Legislation	Report Page
ESRS 2 GOV-1 Gender diversity of the board of directors, section 21, point (d)	Indicator no. 13 of Table 1 of Annex 1		Commission Delegated Regulation (EU) 2020/1816 (5), Annex II		57
ESRS 2 GOV-1 Percentage of board members who are independent, paragraph 21, point (e)			Commission Delegated Regulation (EU) 2020/1816, Annex II		57
ESRS 2 GOV-4 Due diligence statement, section 30	Indicator no. 10 of Table 3 of the Annex				59
ESRS 2 SBM-1 Participation in activities related to fossil fuels, section 40, point (d), subpoint (i)	Indicator no. 4 of Table 1 of Annex 1	Article 449a of Regulation (EU) No. 575/2013; Commission Implementing Regulation (EU) 2022/2453 (6), Table 1: Qualitative information on environmental risk and Table 2: Qualitative information on social risk	Commission Delegated Regulation (EU) 2020/1816, Annex II		N/A
ESRS 2 SBM-1 Participation in activities related to the production of chemicals, section 40, point (d), subpoint (ii)	Indicator no. 9 of Table 2 of Annex 1		Commission Delegated Regulation (EU) 2020/1816, Annex II		N/A
ESRS 2 SBM-1 Participation in activities related to controversial weapons, section 40, point (d), subpoint (iii)	Indicator no. 14 of Table 1 of Annex 1		Regulation (EU) 2020/1818 (7), Article 12, section 1,Commission Delegated Regulation (EU) 2020/1816,		N/A
ESRS 2 SBM-1 Participation in activities related to the cultivation and production of tobacco, section 40, point (d), subpoint (iv)			Commission Delegated Regulation (EU) 2020/1818, Article 12, section 1,Commission Delegated Regulation (EU) 2020/1816, Annex II		N/A
ESRS E1-1 Transition plan to achieve climate neutrality by 2050, section 14				Regulation (EU) 2021/1119, Article 2, section 1	66

ESRS E1-1 Companies excluded from Paris Agreement-aligned benchmark indices, section 16, point (g)		Article 449a of Regulation (EU) No. 575/2013; Commission Implementing Regulation (EU) 2022/2453, Template 1: Banking book – Transition risk linked to climate change: credit quality of exposures by sector, emissions, and residual maturity	Commission Delegated Regulation (EU) 2020/1818, Article 12, section 1, points (d) to (g), and Article 12, section 2		66
ESRS E1-4 Targets for the reduction of GHG emissions, section 34	Indicator no. 4 of Table 2 of Annex 1	Article 449a of Regulation (EU) No. 575/2013; Commission Implementing Regulation (EU) 2022/2453, Template 3: Banking book – Transition risk linked to climate change: harmonisation parameters	Commission Delegated Regulation (EU) 2020/1818, Article 6		70
ESRS E1-5 Energy consumption from non renewable fossil sources, broken down by source (only sectors with high climate impact), section 38	Indicator no. 5 of Table 1 and Indicator no. 5 of Table 2 of Annex 1				71
ESRS E1-5 Energy consumption and mix, section 37	Indicator no. 5 of Table 1 of Annex 1				71
ESRS E1-5 Energy intensity related to activities in sectors with high climate impact, sections 40 to 43	Indicator no. 6 of Table 1 of Annex 1				71
ESRS E1-6 Gross GHG emissions for Scopes 1, 2, and 3, and total GHG emissions, section 44	Indicators no. 1 and no. 2 of Table 1 of Annex 1	Article 449a; Regulation (EU) No. 575/2013; Commission Implementing Regulation (EU) 2022/2453, Template 1: Banking book – Transition risk linked to climate change: credit quality of exposures by sector, emissions, and residual maturity	Commission Delegated Regulation (EU) 2020/1818, Article 5, section 1, and Articles 6 and 8, section 1		71
ESRS E1-6 Gross GHG emissions intensity, sections 53 to 55	Indicator no. 3 of Table 1 of Annex 1	Article 449a of Regulation (EU) No. 575/2013; Commission Implementing Regulation (EU) 2022/2453, Template 3: Banking book – Transition risk linked to climate change: harmonisation parameters	Commission Delegated Regulation (EU) 2020/1818, Article 8, section 1		71
ESRS E1-7 GHG removals and carbon credits, section 56				Regulation (EU) 2021/1119, Article 2, section 1	GCO does not engage in GHG mitigation projects involving the issuance or purchase of carbon credits.

ESRS E1-9 Portfolio exposure to physical climate-related risks, section 66 ESRS E1-9 Breakdown of monetary amounts by acute and chronic physical risks, section 66, point (a) ESRS E1-9 Location of significant assets exposed to material physical risks, section 66,		Article 449a of Regulation (EU) No. 575/2013; Commission Implementing Regulation (EU) 2022/2453, sections 46 and 47; Template 5. Banking portfolio. Physical risk linked to climate change: exposures subject to	Commission Delegated Regulation (EU) 2020/1818, Annex II, Commission Delegated Regulation (EU) 2020/1816, Annex II	Pursuant to Appendix C of the Commission Delegated Regulation (EU) 2023/2772 of 31 July 2023 supplementing Directive 2013/34/EU of the European
point (c). ESRS E1-9 Breakdown of the carrying amount of real estate assets by energy efficiency, section 67, point (c).		physical risk. Article 449a of Regulation (EU) No. 575/2013; Commission Implementing Regulation (EU) 2022/2453, section 34; template 2: Banking book – Transition risk linked to climate change: Loans secured by real estate collateral — Energy efficiency of collateral		Parliament and of the Council as regards sustainability reporting rules, this information is not reported in the first year of implementation of the CSRD (financial year
ESRS E1-9 Portfolio exposure to climate-related opportunities, section 69			Commission Delegated Regulation (EU) 2020/1818, Annex II	2024).
ESRS E2-4 Quantity of each pollutant listed in Annex II of the European PRTR Regulation (European Pollutant Release and Transfer Register) emitted into air, water, and soil, section 28	Indicator no. 8 of Table 1 of Annex 1, Indicator no. 2 of Table 2 of Annex 1, Indicator no. 1 of Table 2 of Annex 1, Indicator no. 3 of Table 2 of Annex 1			Not material
ESRS E3-1 Water and marine	Indicator no. 7 of Table 2 of			Not material
resources, section 9 ESRS E3-1 Specific policies, section 13	Annex 1 Indicator no. 8 of Table 2 of Annex 1			Not material
ESRS E3-1 Sustainable management of oceans and seas, section 14	Indicator no. 12 of Table 2 of Annex 1			Not material
ESRS E3-4 Total recycled and reused water, section 28, point (c)	Indicator no. 6.2 of Table 2 of Annex 1			Not material
ESRS E3-4 Total water consumption in m³ per net revenue from own operations, section 29	Indicator no. 6.1 of Table 2 of Annex 1			Not material
ESRS 2 - IRO 1 - E4 section 16, point a), sub-point i)	Indicator no. 7 of Table 1 of Annex 1			Not material
ESRS 2 - IRO 1 - E4 section 16, point (b)	Indicator no. 10 of Table 2 of Annex 1			Not material
ESRS 2 - IRO 1 - E4 section 16, point c)	Indicator no. 14 of Table 2 of Annex 1			Not material
ESRS E4-2 Sustainable agricultural or land use practices or policies section 24, point b)	Indicator no. 11 of Table 2 of Annex 1			Not material
ESRS E4-2 Sustainable marine or oceanic practices or policies, point 24, point c)	Indicator no. 12 of Table 2 of Annex 1			Not material
ESRS E4-2 Policies to address deforestation, point 24, point d)	Indicator no. 15 of Table 2 of Annex 1			Not material
ESRS E5-5 Non-recycled waste, point 37, point d)	Indicator no. 13 of Table 2 of Annex 1			Not material

Index				Sustainability Report
01. General information	03. Social information	05. Business information	07. Annex I - Taxonomy	09. Annex III - ESRS Index
02. Environmental information	04. Governance information			06. Contributing to society 08. Annex II - Law 11/2018 10. External assurance report

ESRS E5-5 Hazardous waste and radioactive waste, point 39	Indicator no. 9 of Table 1 of Annex 1		Not material
ESRS 2 - SBM3 - S1 Risk of forced labour cases, point 14, point f	Indicator no. 13 of Table 3 of Annex I		75
ESRS 2 - SBM3 - S1 Risk of child labour cases, point 14, point g)	Indicator no. 12 of Table 3 of Annex I		75
ESRS S1-1 Political commitments on human rights, section 20	Indicator no. 9 of Table 3 and indicator no. 11 of Table 1 of Annex I		78
ESRS S1-1 Due diligence policies regarding the issues referred to in the fundamental conventions 1 to 8 of the International Labour Organization, section 21		Commission Delegated Regulation (EU) 2020/1816, Annex II	78
ESRS S1-1 Processes and measures to prevent trafficking in human beings, section 22	Indicator no. 11 of Table 3 of Annex I		78
ESRS S1-1 Policies for accident prevention or workplace accident management systems, section 23	Indicator no. 1 of Table 3 of Annex I		78
ESRS S1-3 Claim or complaint management mechanisms, point 32, point c)	Indicator no. 5 of Table 3 of Annex I		79
ESRS S1-14 Number of fatalities and number and rate of work-related accidents, section 88, points b) and c)	Indicator no. 2 of Table 3 of Annex I	Commission Delegated Regulation (EU) 2020/1816, Annex II	84
ESRS S1-14 Number of lost days due to injuries, accidents, deaths, or illness, section 88, point e)	Indicator no. 3 of Table 3 of Annex I		84
ESRS S1-16 Unadjusted gender pay gap, section 97, point a)	Indicator no. 12 of Table 1 of Annex I	Commission Delegated Regulation (EU) 2020/1816, Annex II	85
ESRS S1-16 Excessive pay gap between the CEO and workers, section 97, point b)	Indicator no. 8 of Table 3 of Annex I		85
ESRS S1-17 Cases of discrimination, section 103, point a)	Indicator no. 7 of Table 3 of Annex I		86
ESRS S1-17. Non-compliance with the United Nations Guiding Principles on Business and Human Rights and the OECD Guidelines, section 104, point a)	Indicator no. 10 of Table 1 and indicator no. 14 of Table 3 of Annex I	Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818, Article 12, section 1	86
ESRS 2 - SBM3 - S2 Significant risk of child or forced labour in the value chain, section 11, point b)	Indicator nos. 12 and 13 of Table 3 of Annex I		75
ESRS S2-1 Political commitments on human rights, section 17	Indicator no. 9 of Table 3 and indicator no. 11 of Table 1 of Annex 1		89
ESRS S2-1 Policies related to value chain workers, section 18	Indicators nos. 11 and 4 of Table 3 of Annex 1		89

Index

ESRS S1-1. Non-compliance with the United Nations Guiding Principles on Business and Human Rights and OECD Guidelines, Section 19	Indicator no. 10 of Table 1 of Annex 1	Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818, Article 12, section 1	78
ESRS S2-1 Due diligence policies regarding the issues referred to in the fundamental conventions 1 to 8 of the International Labour Organization, section 19		Commission Delegated Regulation (EU) 2020/1816, Annex II	89
ESRS S2-4 Human rights issues and impacts related to the previous and subsequent phases of the value chain, section 36	Indicator no. 14 of Table 3 of Annex 1		87
ESRS S3-1 Political commitments on human rights, section 16	Indicator no. 9 of Table 3 and indicator no. 11 of Table 1 of Annex 1		Not material
ESRS S3-1 Non-compliance with the United Nations Guiding Principles on Business and Human Rights, the ILO principles, and the OECD Guidelines, section 17	Indicator no. 10 of Table 1 of Annex 1	Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818, Article 12, section 1	Not material
ESRS S3-4 Human rights issues and impacts, section 36	Indicator no. 14 of Table 3 of Annex 1		Not material
ESRS S4-1 Policies related to consumers and end users, section 16	Indicator no. 9 of Table 3 and indicator no. 11 of Table 1 of Annex		95
ESRS S4-1 Non-compliance with the United Nations Guiding Principles on Business and Human Rights and the OECD Guidelines, section 17	Indicator no. 10 of Table 1 of Annex 1	Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818, Article 12, section 1	95
ESRS S4-4 Human rights issues and impacts, section 35	Indicator no. 14 of Table 3 of Annex 1		96
ESRS G1-1 United Nations Convention against Corruption, section 10, point b)	Indicator no. 15 of Table 3 of Annex 1		101
ESRS G1-1 Whistleblower protection, section 10, point d)	Indicator no. 6 of Table 3 of Annex 1		101
ESRS G1-4 Fines for violating anti-corruption and bribery laws, section 24, point a)	Indicator no. 17 of Table 3 of Annex 1	Commission Delegated Regulation (EU) 2020/1816, Annex II	101
ESRS G1-4 Anti-corruption and anti-bribery standards, section 24, point b)	Indicator no. 16 of Table 3 of Annex 1		101

10.

1. External assurance report

pwc

lnformation and Sustainability lnformation for the year ended 31 December 2024

Grupo Catalana Occidente, S.A. and its subsidiaries Limited assurance report issued by a practitioner on the Consolidated Statement of Non-Financia!

pwc

been taken to ensure that the translatlon Is an accurate representatlon of the origina/. However, In al/ matters of lnterpretatlon of lnformation, vlews or oplnlons, the origina/ language verslon of our report takes precedence over thls translatlon.

This version of our report Is a free translstlon of the original, whlch was prepared In Spanlsh. Al/ posslble care has

Limited assurance report issued by a practitioner on the Consolidated Statement of Non-Financia} Information and Sustainability Information

To the shareholders of Grupo Catalana Occidente, S.A. on behalf of the administrators:

Limited assurance conclusion Pursuant to article 49 of the Code of Commerce, we have conducted a limited assurance engagement on the accompanying Consolidated Statement of Non-Financia! lnformation (hereinafter "SNFI") for the year ended 31 December 2024 of Grupo Catalana Occidente, S.A. (hereinafter the Parent

company) and its subsidiarias (hereinafter the Group ), which forms part of the Group's consolidated management report. The SNFI includes information in addition to that required by current commercial regulations on nonfinancial information, specifically, it includes the Sustainability lnformation preparad by the Group for the year ended 31 December 2024 (hereinafter, the sustainability information) in accordance with the Directiva (EU) 2022/2464 of the European Parliament and of the Council of 14 December 2022, as

regards corporate sustainability reporting (CSRD). This sustainability information has also been subject to limited assurance procedures.

Based on the procedures we have performed and the evidence we have obtained, nothing has come

• to our attention that causes us to believe that: a) the Group's Statement of Non-Financia! lnformation for the year ended 31 December 2024 is not preparad, in all material respects, in accordance with current commercial regulations and in accordance with the selected criteria of the European Sustainability Reporting Standards (ESRS), as well as with those other criteria described as mentioned for each tapie in the table of Annex 11 "Non-Financia! lnformation Statement (NFIS) content index" of the aforementioned
• Statement; b) the sustainability information as a whole is not preparad, in all material respects, in accordance with the sustainability reporting framework applied by the Group and which is identified in the
  • subsection "Guidelines for preparing the Sustainability Report" of section 1, including: • That the description provided of the process for identifying the sustainability information included in the subsection "Management of impacts, risks and opportunities" of section 1 is consistent with the process in place and enables the identification of the material
  • Compliance with ESRS.
  • Compliance with the disclosure requirements, included in subsection "Taxonomy" of the environment section of the sustainability information with the provisions of article 8 of Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on the establishment of a framework to facilitate sustainable investments.

information to be disclosed in accordance with the requirements of ESRS.

R.M. Madrid, hoja M-63.988, folio 75, tomo 9.267, libro 8.054, sección 3ª lnsaila en el R.O.A.C. con el número S0242. NIF: B-79031290

PricewaterhouseCoopers Auditores, S.L., Torre PwC, Pº de la Castellana 259 B, 28046 Madrid, España Tel.: +34 915 684 400 / +34 902 021111, Fax: +34 915 685 400, www.pwc.es 1

pwc

Grupo Catalana Occidente, S.A. and its subsidiarles Basis for conclusion We conducted our limited assurance engagement in accordance with generally accepted professional standards applicable in Spain and specifically in accordance with the guidelines contained in Guides 47 Revised and 56 issued by the Instituto de Censores Jurados de Cuentªs de España on assurance

engagements regarding non-financial information and considering the contents of the note published by the Instituto de Contabilidad y Auditoría (ICAC) dated 18 December 2024 (hereinafter, generally accepted professional standards). In a limited assurance engagement, the procedures applied are less in extent than for a reasonable

engagement is lower than the assurance that would have been obtained had a reasonable assurance engagement been performed.

assurance engagement. Consequently, the level of assurance obtained in a limited assurance

Our responsibilities under these standards are further described in the Practitioner's responsibilities section of our report. We have complied with the independence and other ethical requirements of the lnternational Code of Ethics for Professional Accountants (including lnternational lndependence Standards) issued by the lnternational Ethics Standards Board for Accountants (IESBA Code), which is founded on fundamental

principies of integrity, objectivity, professional competence and due care, confidentiality and professional behaviour. The firm applies lnternational Standard on Quality Management 1, which requires the firm to design, implement and operate a system of quality management including policies or procedures regarding

compliance with ethical requirements, professional standards and applicable legal and regulatory

requirements. We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our

conclusion.

misstatement, whether due to fraud or error.

Responsibilities of the Parent company's directors The preparation of the SNFI included in the Group's consolidated management report, as well as its content, is the responsibility of the directors of Grupo Catalana Occidente,S.A. The SNFI has been prepared in accordance with prevailing commercial regulations and in accordance with the ESRS criteria selected, as well as those other criteria described in accordance with the aforementioned for

each topic in the table [indicate the table] in the aforementioned Statement. This responsibility also encompasses designing, implementing and maintaining such internal control as is determined to be necessary to enable the preparation of the SNFI that is free from material

The directors of Grupo Catalana Occidente, S.A. are also responsible for defining, implementing, adapting and maintaining the management systems from which the information necessary for the preparation of the SNFI is obtained.

•

are

financia!

medium

pwc Grupo Catalana Occidente, S.A. and its subsidiarles With regard to the sustainability information, the Parent company's directors are responsible for developing and implementing a process to identify the information that should be included in the sustainability information in accordance with the CSRD, ESRS andas set out in article 8 of Regulation

• (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020, and for disclosing information about this process in the sustainability information itself in the subsection "Management of impacts, risks and opportunities" of section 1. This responsibility includes:
• understanding Group's relationships conducted, as well as its stakeholders, with regard to the Group's impacts on people and the environment; • identifying the actual and potential impacts (both negative and positive), as well as the risks and opportunities that could affect, could reasonably be expected to affect, Group's

business

activities

and

the

position, financia! results, cash flows, access to finance or cost of capital over the short, or long term;

the

• assessing the materiality of the impacts, risks and opportunities identified; and

Parliament

sustainable

• making assumptions and estimates that are reasonable under the circumstances. The Parent company's directors are also responsible for the preparation of the sustainability information, which includes the information identified by the process, in accordance with the sustainability reporting framework applied, including compliance with the CSRD, compliance with ESRS and compliance with the disclosure requirements included in subsection "Taxonomy" of the environment section of the sustainability information in accordance with the provisions of article 8 of

and

investment.

ofthe

Council

of 18 June

expected.

2020 on the

Regulation (EU) establishment of a framework to

lnherent limitations

2020/852

of the

the

context

in which

or

European

facilitate

• This responsibility includes: • Designing, implementing and maintaining such interna! control as the Parent company's directors consider to be relevant to enable the preparation of sustainability information that is
• free from material misstatement, whether due to fraud or error. • Selecting and applying appropriate methods for the presentation of sustainability information and making assumptions and estimates that are reasonable in the circumstances about specific

disclosures.

future

and

future

events

often do not occur as

in

to the

preparing the information In accordance with ESRS, the Parent company's directors are required to prepare prospective information based on assumptions and hypotheses, which should be included in the sustainability information, regarding events that could occur in the future, as well as possible future actions, where appropriate, that the Group could take. Actual results may differ significantly from estimated results since they refer

In determining disclosures relating to sustainability information, the Parent company's directors interpret legal and other terms that are not clearly defined and could be interpreted differently by others, including the legality of such interpretations and, consequently, they are subject to uncertainty.

...

its subsidiarles

S.A and

misrepresentations ar the override of

pwc

included

in both the

Grupo Occidente, Practitioner's responsibilities Our responsibility is to plan and perform the assurance engagement to obtain limited assurance about whether the SNFI and sustainability information are free from material misstatement, whether due to

Catalana

fraud ar error, and to issue a limited assurance report that includes our conclusion. Misstatements can arise from fraudar error and are considered material if, individually ar in the aggregate, they could reasonably be expected to influence decisions of users taken on the basis of this information.

• As part of a limited assurance engagement, we exercise professional judgement and maintain professional scepticism throughout the engagement. We also: • Design and perform procedures to assess whether the process for identifying the information SNFI and the sustainability information is consistent with the description of
• the process followed by the Group and enables, where appropriate, the identification of the material information to be disclosed in accordance with ESRS requirements. • Perform risk assessment procedures, including obtaining an understanding of interna! control relevant to the engagement, to identify the disclosures in respect of which material
• misstatements are likely to arise, whether dueto fraud ar error, but not for the purpose of providing a conclusion on the effectiveness of the Group's interna! control. • Design and perform procedures responsive to where material misstatements are likely to arise in the disclosures included in the SNFI and sustainability information. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud

omissions,

intentional

the

SNFI:

may collusion, forgery, interna! control.

involve

In

relation

to the

for the

externa!

Summary of the work performed A limited assurance engagement involves performing procedures to obtain evidence to support our conclusions. The nature, timing and extent of procedures selected depend on professional judgement, including the identification of the disclosures where material misstatements are likely to arise, whether

dueto fraudar error, in the SNFI and in the sustainability information. Our work consisted of enquiries of management as well as of various units and components of the Group that were involved in the preparation of the SNFI and sustainability information, of the review of the processes for compiling and validating the information presented in the SNFI and sustainability information and of the application of certain analytical procedures and review procedures on a sample

basis, as described below:

review.

• process of verifying • Meetings with Group personnel to understand the business model, policies and management approaches applied and the main risks related thereto, and obtaining the information required
• Analysis of the scope, relevance and completeness of the content of the SNFI for the 2024 year based on the materiality analysis performed by the Group and described in the subsection "Management of impacts, risks and opportunities" of section 1, taking into account the content required under prevailing commercial legislation.

•

content of the

the information

SNFI

to the

from

• pwc Grupo Catalana Occidente, S.A. and its subsidiaries
  • Analysis of the processes to compile and validate the information presented in the SNFI for the 2024 year.
  • Review of information concerning risks, policies and management approaches applied in relation to material matters presented in the SNFI for the 2024 year.

• Verification, by means of sample testing, of the information relating for the 2024 year and its adequate compilation using data obtained

sources.

the

are

are

material misstatements

• In relation to the process of verifying the sustainability information: Making enquiries of the Group's personnel: in order to understand the business model, policies and management approaches applied
  • and the main risks related thereto, and obtaining the information required for the externa! review. in arder to understand the source of the information used by management (for example,

information for

the

engagement with stakeholders, business plans and strategy documents); and the review of the Group's interna! documentation on its process; • Obtaining, through enquiries of Group personnel, an understanding of the entity's relevant

and

• processes for collecting, validating presenting preparation of its sustainability information. • Evaluating the consistency of the evidence obtained from our procedures on the process implemented by the Group for determining the information that should be included in the sustainability information with the description of the process included in such information, as well as the evaluation of whether the aforementioned process implemented by the Group enables the identification of material information to be disclosed according to ESRS
• requirements. • Evaluating whether all the information identified in the process implemented by the Group for determining the information that should be included in the sustainability information is in fact
• included. • Evaluating the consistency of the structure and presentation of the sustainability information with the requirements of ESRS and the rest of the regulatory framework on sustainability
• information applied by Group. • Making enquiries of relevant personnel and performing analytical procedures on the information disclosed in the sustainability information, considering such information in respect of which

due to

fraud or error.

• Performing, where appropriate, substantive procedures on a sample basis on the information disclosed in the selected sustainability information, considering such information in respect of which material misstatements likely to arise, whether due to fraud or error.

likely to arise, whether

• Obtaining, where applicable, the reports issued by accredited independent third parties appended to the consolidated management report in response to the requirements of European regulations and, in relation to the information to which they refer and in accordance with generally accepted professional standards, verifying only the practitioner's accreditation and that the scope of the report issued is aligned with the requirements of European regulations.

and

management in

the existence of material

• pwc Grupo Catalana Occidente, S.A. and its subsidiarles • Obtaining, where appropriate, the documents that contain the information incorporated by reference, the reports issued by auditors or practitioners on such documents and, in accordance
  • with generally accepted professional standards, verifying only that the document to which the information incorporated by reference refers meets the conditions described in ESRS for the incorporation of information by reference in the sustainability information.

from

• Obtaining a representation letter

relation to the SNFI and sustainability information. Other information The Parent company's directors are responsible for the other information. The other information comprises the consolidated annual accounts and the rest of the information included in the consolidated management report, but does not include either the auditors' report on the consolidated annual accounts or the assurance reports issued by accredited independent third parties as required

the Parent company's directors

by European Union law on specific disclosures contained in the sustainability information and appended to the consolidated management report.

Our assurance report does not cover the other information, and we do not express any form of assurance conclusion thereon. With regard to our assurance engagement regarding the sustainability information, our responsibility consists of reading the other information identified above and, in doing so, considering whether the other information is materially inconsistent with the sustainability information or the knowledge we

may be

indicativa

of

which

S.L.

obtained during the engagement, misstatements in the sustainability information.

PricewaterhouseCoopers Auditores S.L.

assurance

PRICEWATERHOUSECOOPERS AUDITORES, Original in Spanish signed by

2025

Enrique Anaya Rico

February

have

27

07. Annual corporate governance report

In accordance with the provisions of Article 538 of Royal Legislative Decree 1/2010, of July 2, which approves the revised text of the Capital Companies Act, the Annual Corporate Governance Report is part of this Consolidated Management Report and is subject to the same approval, filing, and publication criteria as this Consolidated Management Report. The content of the Annual Corporate Governance Report has been sent, as a separate document, to the National Securities Market Commission (CNMV) for publication on www.cnmv.es.

The mentioned report is additionally available on the corporate website at www.gco.com/shareholders-investors/ governance/annual-repor

08. Annual remuneration report

In accordance with the provisions of Article 538 of Royal Legislative Decree 1/2010, of July 2, which approves the revised text of the Capital Companies Act, the Annual Corporate Governance Report is part of this Consolidated Management Report and is subject to the same approval, filing, and publication criteria as this Consolidated Management Report. The content of the Annual Corporate Governance Report has been sent, as a separate document, to the National Securities Market Commission (CNMV) for publication on www.cnmv.es.

The mentioned report is additionally available on the corporate website at www.gco.com/shareholders-investors/ governance/annual-report

09. Glossary and Calendar

Glossary	167
Calendar	171

02. GCO in 2024 04. Corporate Governance 06. Sustainability Report 08.Annual remuneration report

Glossary

Concept	Definition	Formulation	Importance and relevance of use
Technical result after expenses	Insurance activity result	Technical result after expenses = (earned premiums from direct insurance + earned premiums from accepted reinsurance + information services and commissions) – Technical cost – Bonuses and rebates - Net operating expenses - Other technical expenses	Relevant Entity Relevant investors
Reinsurance result	Result produced by ceding business to the reinsurer or accepting business from other entities.	Reinsurance result = Accepted reinsurance result + Ceded reinsurance result	Relevant Entity Relevant investors
Financial result	Result of financial investments.	Financial result = income from financial assets (coupons, dividends, actions) - financial expenses (commissions and other expenses) + result from subsidiary companies - interest accrued on debt - interest paid to insured parties of the life insurance business	Relevant Entity Relevant investors
Technical/ financial result	Result of the insurance activity including the financial result. This result is especially relevant in Life insurance.	Technical/financial result = Technical result + Financial result	Relevant Entity Relevant investors
Non-technical non-financial account result	Those income and expenses not assignable to technical or financial profits/losses.	Non-technical non-financial account result = Income - expenses not assignable to technical or financial profits/losses	Relevant Entity Relevant investors
Result complementary activities	Result of activities not assignable to the purely insurance business. Mainly the activities of: · Information services · Recoveries · Management of the Dutch state export account.	Result complementary activities of credit insurance = income - expenses	Result of activities not assignable to the purely insurance business. It includes the funeral business and complementary credit activities (mainly: information services, collections, management of the Dutch state export account).
Ordinary result	Result of the entity's usual activity	Ordinary result = technical/financial result + non-technical account result - taxes, all resulting from habitual activity	Relevant Entity Relevant investors

01. Annual panorama	03.Results in 2024	05. Business Model	07. Annual corporate governance report 09.Glossary and calendar

Concept	Definition	Formulation	Importance and relevance of use
Turnover	Turnover is the Group's business volume	Turnover = Premiums invoiced + Income from information	Relevant Entity Relevant investors
	Includes the premiums that the Group generates in each of the business lines and the income from services from credit insurance.	Written premiums = direct insurance premiums issued + accepted reinsurance premiums
Managed funds	Amount of financial and real estate assets managed by the Group	Managed funds = Financial and real estate assets, entity risk + Financial and real estate assets, policyholder risk + Managed pension funds	Relevant investors
		Managed funds = fixed income + variable income + real estate + deposits in credit institutions + treasury + investee companies
Financial strength	Shows the debt and solvency situation.	Debt ratio = Debt / Net worth + Debt	Relevant investors
	It is mainly measured through the debt ratio, the interest coverage ratio and the credit rating (rating).
Technical cost	Direct costs of claims coverage. See claims.	Technical cost = claims in the year, net of reinsurance + variation in other technical provisions, net of reinsurance
Average cost of claims	Reflects the average cost per claim	Average cost of claims = Technical Cost / number of claims corresponding to said period.
Deposits for ceded reinsurance	Deposits retained by the Group in order to guarantee the financial obligations of reinsurers	Deposits for ceded reinsurance Amounts received from reinsurance ceded in order to guarantee the obligations arising from reinsurance contracts, their amount corresponds to the balance recorded in the Balance Sheet
Dividend yield	The dividend yield, shows the relationship between the dividends distributed in the last year with the average share value.	Dividend yield = dividend paid in the year per share / average share price value	Relevant investors
	Indicator used to value the shares of an entity
Modified Duration	Sensitivity of the value of the asset to movements in interest rates	Modified duration = Represents an approximation of the value of the percentage change in the value of financial assets for each percentage point (100 basis points) of change in interest rates.
Expenses	General expenses include the costs that arise for business management, excluding those properly assignable to claims.	Expenses = personnel expenses + commercial expenses + services and miscellaneous expenses (subsistence allowances, training, management awards, material and other office expenses, rent, external services, etc.)	Relevant Entity Relevant investors
Permanence index	Measures the customer's expectation of continuing with the entity Scale from less than 1 year to more than 5 years	Permanence rate = How long do you think you would continue to be a customer?	Relevant Entity Relevant investors
Satisfaction index with the	Measures the degree of general customer satisfaction with the entity	General satisfaction index = (Satisfied – dissatisfied) / respondents	Relevant Entity
company	Scale from 1 to 10	Satisfied answers with result from 7 to 10 Dissatisfied answers with result from 1 to 4	Relevant investors
Service satisfaction index	Measures the evaluation of the service received Scale 1 to 10	Service satisfaction index = (Satisfied – dissatisfied) / respondents Satisfied answers with result from 7 to 10	Relevant Entity Relevant investors
		Dissatisfied answers with result from 1 to 4

Concept	Definition	Formulation	Importance and relevance of use
Insurance income	Measures income derived directly from insurance activity and information services	Insurance income = premiums earned from direct insurance + premiums earned from accepted reinsurance + information services and commissions	Relevant Entity Relevant investors
Income from information	Income obtained from the study of the financial information of the debtors of the credit business for contracting a policy	Income from information = Information services and commissions	Relevant Entity Relevant investors
Managed funds	Set of assets managed by the Group in order to obtain financial performance from them.	Financial assets from the entity's balance sheet (properties, fixed income, equity,) plus assets managed by the Group for its clients in pension plans and mutual funds	Relevant Entity Relevant investors
Investments in associated / subsidiaries entities	Non-dependent entities in which the Group has significant influence	Investments in associated / subsidiaries entities = book value of the economic participation
Net Promoter Score NPS	Measures the degree of customer loyalty with the entity.	Net Promoter score = Would you recommend the company to family and friends? = (promoters-detractors)/ respondents Promoters: responses with a result equal to 9 or 10 Detractors: answers with result from 1 to 6	Relevant Entity Relevant investors
Pay out	Ratio that indicates the part of the result that is distributed to investors via dividends	Pay out = (Total dividend / Profit for the year attributable to the Parent Company) x 100	Relevant investors
Price Earnings Ratio	The price-earnings ratio or PER measures the relationship between the price or value of the entity and the result.	PER = Closing market price of the share / Profit for the year attributable to the Parent Company per share	Relevant investors
PER	Its value expresses what the market pays for each monetary unit of result. It is representative of the entity's ability to generate result.
Recurring premiums	Total premiums without considering non-periodic premiums of the Life business	Recurring Premiums = Earned premiums - single and supplemental life business premiums	Relevant Entity Relevant investors
Technical provisions	Amount of assumed obligations arising from insurance and reinsurance contracts.		Relevant Entity Relevant investors
Combined ratio	Indicator that measures the technical profitability of Non-Life insurance.	Combined Ratio = Ratio of claims + Expense Ratio	Relevant Entity Relevant investors
Net combined ratio	Indicator that measures the technical profitability of Non-Life insurance net of the reinsurance effect	Net Combined Ratio = Net Ratio of claims + Net Expense Ratio
Efficiency ratio	Ratio that reflects the part of premium income dedicated to operating expenses and commissions	Efficiency ratio = (Total Expenses and commissions) / Recurring premiums	Relevant Entity Relevant investors
Expense ratio	Ratio that reflects the part of premium income dedicated to expenses.	Expense ratio = Operating expenses / Insurance income
Net expense ratio	Ratio that reflects the portion of premium income dedicated to expenses net of the reinsurance effect	Net expense ratio = (Net reinsurance operating expenses) / (imputed premiums for direct business and accepted reinsurance + information services and commissions)
Claims ratio	Business indicator, consisting of the proportion between claims and earned premiums.	Claims ratio = Claims / Insurance income	Relevant Entity Relevant investors

Concept	Definition	Formulation	Importance and relevance of use
Net claims ratio	Business indicator, consisting of the proportion between claims and earned premiums, net of the reinsurance effect.	Net claims ratio = Claims for the year, net of reinsurance / (imputed premiums for direct business and accepted reinsurance + information services and commissions)
Permanent resources	Resources comparable to own funds.	Permanent resources = Total net equity + subordinated liabilities	Relevant Entity Relevant investors
Permanent resources at market value	Resources comparable to own funds at market value	Permanent resources at market value = Total net equity + subordinated liabilities + capital gains associated with real estate for own use + capital gains associated with real estate investments	Relevant Entity Relevant investors
Resources transferred to the company	Amount that the Group returns to the main interest groups.	Resources transferred to the company = claims paid + taxes + commissions + personnel expenses + dividends
Return On Equity	Financial profitability or rate of return	ROE = (Result for the year. Attributable to the parent company) / (Simple average of the Equity attributed to the shareholders of the Parent Company at the beginning and end of the period (twelve months)) x 100	Relevant investors
ROE	Measures return on capital
Claims rate	See technical cost. Economic valuation of claims.	Claims rate = Benefits paid from direct insurance + Variation in the provision for direct insurance benefits + expenses attributable to benefits
Total expenses and commissions	Commissions and expenses (except those assignable to claims) that arise for business management.	Expenses and commissions = Operating expenses + commissions paid on the policies
Total Potential Exposure TPE	It is the potential exposure to risk, also "cumulative risk." Term of credit insurance business	TPE = the sum of the credit risks underwritten by the Group for each buyer	Relevant Entity Relevant investors
Value of responsible investments with respect to the total investments and managed funds	Ratio that reflects the assets managed by the Group that comply with the Group's Responsible Investment Policy, with respect to the total investments and funds managed by the Group.	Investments that comply with the Group's Responsible Investment Policy / Total investments and funds managed by the Group
Generated economic value	The generated economic value responds to the aggregation of the value distributed by the Group and the value retained by the Group.	Direct generated economic value = economic value distributed + economic value retained
Distributed economic value	Economic value that the Group has allocated to the following interest groups: clients, public administrations, mediators, employees, shareholders and contributions to foundations and non profit entities.	Distributed economic value = payment of benefits to clients + taxes paid and Social Security contributions + payments to suppliers + salaries and benefits of employees + dividends paid + contributions from the Group to foundations and non-profit entities.
Retained economic value	Amount of GCO's annual net result not distributed.	Retained economic value = Annual amount of GCO's after-tax income allocated to Reserves.
Theoretical book value	Value per share that a company has in accounting terms. Book value per share.	Theoretical book value = Net equity/number of shares	Relevant investors

02. GCO in 2024 04. Corporate Governance 06. Sustainability Report 08.Annual remuneration report

Calendar

January	February	March	April	May	June	July	August	September	October	November	December
	27 Results 12M2024		30 Results 3M2025			31 Results 6M2025			30 Results 9M2025
	28 Results Presentation 12M2024 11.30			5 Results Presentation 3M2025 11.00		31 Results Presentation 6M2025 16.30			30 Results Presentation 9M2025 16.30
			30 General shareholders 'meeting 2024
	Interim dividend 2024			Complement ary dividend 2024		Interim dividend 2025			Interim dividend 2025

Analysts and investors +34 915 661 302 analistas@gco.com

Shareholder support

+34 935 820 667 accionistas@gco.com

www.gco.co

III. Consolidated annual accounts

GRUPO CATALANA OCCIDENTE, S.A. AND SUBSIDIARIES (Grupo Catalana Occidente) CONSOLIDATED BALANCE SHEET AT 31 DECEMBER 2024 AND 31 DECEMBER 2023 (Notes 1 to 3)

	ASSETS	Note	31.12.2024		31.12.2023 (*)
1. 2.	Cash and other equivalent liquid assets Financial assets held for trading	6		1,426,708 –		1,373,741 –
3.	Financial assets at fair value through profit or loss	7.a.		2,026,751		1,737,696
	a) Equity instruments		622,939		532,493
	b) Debt securities		106,606		115,882
	c) Investments held for the benefit of policyholders who bear the investment risk		1,072,914		869,715
	d) Bank deposits		224,292		219,606
4.	Financial assets at fair value through other comprehensive income	7.a.		10,096,233		9,175,697
	a) Equity instruments		2,109,916		1,855,423
	b) Debt securities		7,882,780		7,215,633
	c) Deposits with credit institutions		103,537		104,641
5.	Financial assets measured at amortised cost			975,747		855,970
	a) Loans and other financial assets	7.a.	533,950		523,564
	b) Receivables	7.b.	438,014		330,040
6.	c) Investments held for the benefit of policyholders who bear the investment risk Hedging derivatives	7.a.	3,783	–	2,366	–
7.	Assets under insurance contracts	14		161,616		122,619
8.	Assets under reinsurance contracts	14		798,783		780,049
	a) Assets for remaining coverage		286,851		279,017
	b) Assets for claims incurred		511,932		501,032
9.	Property, plant and equipment and investment property			1,432,884		1,242,907
	a) Property, plant and equipment	9.a.	642,807		511,040
	b) Investment property 10. Intangible fixed assets	9.b.	790,077	1,596,443	731,867	1,591,364
	a) Goodwill	10.a.	1,179,707		1,167,496
		10	–		145
	b) Policy portfolio acquisition costs c) Other intangible assets	10	416,736		423,723
11.	Investments in entities accounted for using the equity	8		124,975		119,076
	method 12. Tax assets			486,488		448,314
	a) Current tax assets	11.b.	131,007		166,901
	b) Deferred tax assets	11.c.	355,481		281,413
	13. Other assets	12		118,787		171,690
	TOTAL ASSETS			19,245,415		17,619,123

(Figures in thousands of euros)

(*) Presented solely and exclusively for comparison purposes. See Note 2.e) of the accompanying Annual Report.

The accompanying Notes 1 to 22 described in the attached Report and Appendices I and II are an integral part of the Consolidated Balance Sheet at 31 December 2024.

GRUPO CATALANA OCCIDENTE, S.A. AND SUBSIDIARIES (Grupo Catalana Occidente) CONSOLIDATED BALANCE SHEET AT 31 DECEMBER 2024 AND 31 DECEMBER 2023 (Notes 1 to 3)

(Figures in thousands of euros)

NET LIABILITIES AND EQUITY			31.12.2024		31.12.2023 (*)
	TOTAL LIABILITIES			12,956,497		12,002,834
1.	Financial liabilities designated at fair value through profit or loss			–		–
2.	Financial liabilities at amortised cost			1,313,782		1,128,648
	a) Subordinated liabilities	13.a.	247,938		156,205
	b) Other payables	13.b.	1,065,844		972,443
3.	Hedging derivatives			–		–
4.	Liabilities under insurance contracts	14		10,504,320		9,839,514
	a) Liabilities for remaining coverage		8,030,458		7,622,766
	b) Liabilities for incurred claims		2,473,862		2,216,748
5.	Liabilities under reinsurance contracts	14		5,085		755
6.	Non-technical provisions	15		175,596		245,228
7.	Tax liabilities			855,102		670,666
	a) Current tax liabilities	11.b.	54,949		93,091
	b) Deferred tax liabilities	11.c.	800,153		577,575
8.	Other liabilities			102,612		118,023
	TOTAL NET EQUITY			6,288,918		5,616,289
	Equity			4,970,792		4,520,506
1.	Capital	16.a		36,000		36,000
2.	Share Premium	16.b		1,533		1,533
3.	Reserves	16.b		4,319,597		3,925,162
4.	Less: Shares and holdings in own equity	16.c		(22,787)		(22,787)
5.	Profit/(loss) for the year attributable to the parent company			636,449		580,598
6.	Less: Interim dividend	16.e		–		–
	Other accumulated comprehensive income	16.g		779,979		582,619
1.	Items that will not be re-classified to profits/(losses)			708,165		528,654
	a) Changes in the fair value of equity instruments measured at fair value through other comprehensive income		708,165		528,654
2.	Items that may be subsequently reclassified to profit or loss			71,814		53,965
	a) Changes in the fair value of debt instruments measured at fair value through other comprehensive income		24,852		(40,334)
	b) Exchange-rate differences		40,189		7,484
	c) Changes in the fair value of insurance contracts measured at fair value through other comprehensive income		8,571		93,139
	d) Changes in the fair value of reinsurance contracts held measured at fair value through other comprehensive income		7,321		1,301
	e) Entities accounted for using the equity method		(9,119)		(7,625)
	EQUITY ATTRIBUTABLE TO THE PARENT			5,750,771		5,103,125
	COMPANY MINORITY INTERESTS	17		538,147		513,164
1.	Other accumulated comprehensive income			19,638		6,703
2.	Other			518,509		506,461
	TOTAL NET EQUITY AND LIABILITIES			19,245,415		17,619,123

(*) Presented solely and exclusively for comparison purposes. See Note 2.e) of the accompanying Annual Report.

The accompanying Notes 1 to 22 described in the attached report and Appendices I and II are an integral part of the Consolidated Balance Sheet at 31 December 2024.

(Grupo Catalana Occidente)

CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR

THE FINANCIAL YEARS ENDED 31 DECEMBER 2024 AND 2023 (Notes 1 to 3) (Figures in thousands of euros)

	Note	Year 2024	Year 2023 (*)
1. Insurance service income	19	4,918,293	4,768,400
a) Income from contracts measured under the general method (BBA) and equity method (VFA)		2,494,393	2,487,063
a.1) Amounts related to changes in the liability for the remaining coverage		1,856,183	1,755,980
- Expected benefits and expenses		1,523,051	1,398,021
- Changes in the risk adjustment for non-financial risk		92,328	115,359
- CSM recognised for services provided		240,804	242,600
a.2) Release (recovery) of acquisition costs allocated to the period		519,007	524,145
a.3) Adjustment of experience related to current services		119,203	206,938
b) Contract income measured under the simplified approach (PAA)		2,423,900	2,281,337
2. Insurance service expenses	19	(3,971,789)	(3,775,632)
a) Benefits and expenses incurred		(2,975,951)	(2,706,533)
b) Acquisition costs		(1,136,107)	(1,102,576)
c) Change in liability for incurred claims		140,269	33,477
A) PROFIT/(LOSS) ASSOCIATED WITH INSURANCE CONTRACTS ISSUED		946,504	992,768
3. Reinsurance expenses	19	(644,076)	(656,761)
4. Income from reinsurance recoveries	19	410,059	370,086
B) PROFIT/(LOSS) ASSOCIATED WITH REINSURANCE CONTRACTS HELD		(234,017)	(286,675)
C) PROFIT/(LOSS) OF THE INSURANCE SERVICE (A + B)		712,487	706,093
5. Income from interest	7.c	240,744	187,742
6. Income from dividends	7.c	80,367	69,211
7. Net gain / (loss) on financial instruments	7.c	127,586	136,339
8. Reversal / (loss) for impairment of financial instruments	7.c	(2,864)	3,708
9. Net gain / (loss) for exchange rate	7.c	2,557	(3,286)
10. Other financial income / (expenses)	19	28,678	14,384
11. Income / (expenses) from property, plant and equipment and investment property	19	17,100	(9,546)
12. Profits/(losses) of entities accounted for using the equity method	19	15,750	13,288
D) NET INVESTMENT PROFIT/(LOSS)		509,918	411,840
Financial income / (expenses) for insurance associated with insurance contracts 13.	19	(362,454)	(320,452)
issued 14. Financial income / (expenses) associated with reinsurance contracts held	19	14,228	11,542
E) TOTAL FINANCIAL INCOME OR EXPENSES FOR INSURANCE		(348,226)	(308,910)
F) NET INSURANCE AND INVESTMENT PROFIT/(LOSS) (C+D+E))		874,179	809,023
15. Other income	19	543,130	491,952
16. Other expenses	19	(494,621)	(462,574)
G) PROFIT BEFORE TAX		922,688	838,401
17. Income tax	11.e	(225,210)	(197,603)
H) PROFIT/(LOSS) FOR THE YEAR FROM ON-GOING TRANSACTIONS		697,478	640,798
18. Profit/(loss) for the year from discontinued operations and/or held for sale, net of taxes		–	4,314
I) CONSOLIDATED PROFIT/(LOSS) FOR THE YEAR		697,478	645,112
a) Profit attributable to equity holders of the parent company		636,449	580,598
b) Profit attributable to minority interests	17	61,029	64,514
EARNINGS PER SHARE			(Figures in Euros)
Basic	16.f	5.39	4.92
Diluted	16.f	5.39	4.92

(*) Presented solely and exclusively for comparison purposes. See Note 2.e) of the accompanying Annual Report.

The accompanying Notes 1 to 22 described in the attached report and Appendices I and II are an integral part of the Consolidated Profit and Loss Account for 2024.

(Grupo Catalana Occidente)

CONSOLIDATED STATEMENTS OF RECOGNISED INCOME AND EXPENSE FOR FINANCIAL YEARS ENDING 31 DECEMBER 2024 AND 2023 (Notes 1 to 3)

				(Figures in thousands of euros)
		Note	Year 2024	Year 2023 (*)
	A) CONSOLIDATED PROFIT/(LOSS) FOR THE PERIOD	697,478	645,112
	B) OTHER COMPREHENSIVE INCOME - ITEMS NOT RECLASSIFIED IN THE FOR THE PERIOD		155,798	180,050
1.	Actuarial gains /(losses) on long-term employee benefits	15	(60,659)	10,707
2.	Movement related to equity instruments at fair value through other comprehensive income	7.a	264,183	211,006
3.	Tax effect	11.d	(47,726)	(41,663)
	C) OTHER COMPREHENSIVE INCOME - ITEMS THAT CAN BE RECLASSIFIED AFTER THE PROFIT/(LOSS) FOR THE PERIOD		49,463	71,946
1.	Movement related to debt instruments at fair value through other comprehensive income	7.a	98,318	262,150
	a) Valuation gains/(losses)		89,819	265,049
	b) Amounts transferred to the profit and loss account		8,499	(2,899)
	c) Other reclassifications		–	–
2.	Financial income /(expenses) from insurance contracts	7.c	(91,578)	(140,130)
	a) Valuation gains/(losses)		(91,578)	(140,130)
	b) Amounts transferred to the profit and loss account		–	–
	c) Other reclassifications		–	–
3.	Financial income /(expenses) from reinsurance contracts	7.c	10,017	(3,134)
	a) Valuation gains/(losses) b) Amounts transferred to the profit and loss account		10,017 –	(3,134) –
	c) Other reclassifications		–	–
4.	Exchange rate differences		39,767	(25,235)
	a) Valuation gains/(losses)		39,767	(25,235)
	b) Amounts transferred to the profit and loss account		–	–
	c) Other reclassifications		–	–
5.	Entities accounted for using the equity method		(1,494)	(4,485)
	a) Valuation gains/(losses)	8	(1,494)	(4,485)
	b) Amounts transferred to the profit and loss account		–	–
	c) Other reclassifications		–	–
6.	Tax effect	11.d	(5,567)	(17,220)
	TOTAL COMPREHENSIVE INCOME FOR THE YEAR (A + B + C)	902,739	897,108
	a) Attributable to equity holders of the parent company		832,076	813,301
	b) Attributable to minority interests		70,663	83,807

(*) Presented solely and exclusively for comparison purposes. See Note 2.e) of the accompanying Annual Report.

The accompanying Notes 1 to 22 described in the attached report and Appendices I and II are an integral part of the consolidated Statement of Recognised Income and Expenses for the financial year 2024.

(Grupo Catalana Occidente)

CONSOLIDATED STATEMENT FOR CHANGES IN EQUITY FOR

THE FINANCIAL YEARS ENDED 31 DECEMBER 2024 AND 2023 (Notes 1 to 3)

(Figures in thousands of euros)

	Equity attributable to equity holders of the parent company
			Equity	Other
Note	Capital or mutual fund	Share premium and Reserves	Shares and holdings in own equity	Profit/(loss) for the year attributable to the parent company	(Interim dividends)	accumulated comprehensive income	Minority interests	Total net equity
Closing balance at 31 December 2022 (*)	36,000	3,580,979	(22,787)	472,976	–	332,850	453,944	4,853,962
Adjustment for initial application of IFRS 17 and IFRS 9 (net of tax effect)	–	(2,693)	–	–	–	–	–	(2,693)
Adjustment for errors Opening balance adjusted to 01 January 2023 (*)	– 36,000	– 3,578,286	– (22,787)	– 472,976	– –	– 332,850	– 453,944	– 4,851,269
I. Total recognised income/(expenses) 2023	–	(17,066)	–	580,598	–	249,769	83,807	897,108
II. Transactions with shareholders or owners	–	(67,728)	–	–	(58,908)	–	(23,843)	(150,479)
1. Capital increases/(decreases)	–	–	–	–	–	–	–	–
2. Dividend distribution	–	(67,728)	–	–	(58,908)	–	(31,856)	(158,492)
3. Transactions with treasury shares or holdings (net) 16.c.	–	–	–	–	–	–	–	–
4. Increases/(Decreases) due to business combinations	–	–	–	–	–	–	8,013	8,013
III. Other changes in equity	–	433,203	–	(472,976)	58,908	–	(744)	18,391
1. Transfers between equity components	–	414,068	–	(472,976)	58,908	–	–	–
2. Other changes	–	19,135	–	–	–	–	(744)	18,391
Closing balance at 31 December 2023 (*)	36,000	3,926,695	(22,787)	580,598	–	582,619	513,164	5,616,289
Adjustment for changes in accounting policies	–	–	–	–	–	–	–	–
Adjustment for errors	–	–	–	–	–	–	–	–
Opening balance adjusted to 1 January 2024	36,000	3,926,695	(22,787)	580,598	–	582,619	513,164	5,616,289
I. Total recognised income/(expenses) 2024	–	(20,900)	–	636,449	–	216,527	70,663	902,739
II. Transactions with shareholders or owners	–	(69,427)	–	–	(64,800)	837	(48,829)	(182,219)
1. Capital increases/(decreases)	–	–	–	–	–	–	–	–
16.e. 2. Dividend distribution	–	(72,792)	–	–	(64,800)	–	(45,748)	(183,340)
3. Transactions with treasury shares or holdings (net) 16.c.	–	–	–	–	–	–	–	–
4. Increases/(Decreases) due to business combinations	–	3,365	–	–	–	837	(3,081)	1,121
III. Other changes in equity		484,762	–	(580,598)	64,800	(20,004)	3,149	(47,891)
1. Transfers between equity components 16.d.	–	515,798	–	(580,598)	64,800	–	–	–
2. Other changes	–	(31,036)	–	–	–	(20,004)	3,149	(47,891)
Closing balance at 31 December 2024	36,000	4,321,130	(22,787)	636,449	–	779,979	538,147	6,288,918

(*) Presented solely and exclusively for comparison purposes. See Note 2.e) of the accompanying Annual Report.

The accompanying Notes 1 to 22 described in the attached report and Appendices I and II are an integral part of the Consolidated Statement of Changes in Equity at 31 December 2024.

(Grupo Catalana Occidente)

CONSOLIDATED CASH FLOW STATEMENT FOR THE FINANCIAL YEARS ENDED 31 DECEMBER 2024 AND 2023 (DIRECT METHOD) (Notes 1 to 3)

	Note	Year 2024	Year 2023 (*)
A) CASH FLOWS FROM OPERATING ACTIVITIES (1+2+3)		750,922	428,091
1. Insurance activities:		802,730	720,293
(+) Cash received from insurance activities		6,396,820	6,153,873
(-) Cash paid in insurance activities		(5,594,090)	(5,433,580)
2. Other operating activities:		148,335	(94,599)
(+) Cash received from other operating activities		529,215	483,342
(-) Cash paid in other operating activities		(380,880)	(577,941)
3. Income tax refunded/(paid)		(200,143)	(197,603)
B) CASH FLOWS FROM INVESTING ACTIVITIES (1 + 2)		(659,432)	(882,785)
1. Cash received from investing activities:		3,037,435	2,818,881
(+) Property, plant and equipment	9.a	3,371	5,228
(+) Investment property	9.b	97,197	62,116
(+) Financial instruments	7.a	2,535,887	2,475,316
(+) Subsidiaries and other business units		787	—
(+) Interest received	7.c	240,744	187,742
(+) Dividends received	7.c	80,367	69,211
(+) Other cash received in relation to investing activities		79,082	19,268
2. Payments from investment activities:		(3,696,867)	(3,701,666)
(-) Property, plant and equipment	9.a	(214,280)	(48,659)
(-) Investment property	9.b	(42,806)	(32,755)
(-) Intangible assets	10	(13,725)	(13,491)
(-) Financial instruments	7.a	(3,298,746)	(3,029,926)
(-) Subsidiaries and other business units	5	(93,070)	(401,319)
(-) Other cash paid in relation to investing activities		(34,240)	(175,516)
C) CASH FLOWS FROM FINANCING ACTIVITIES (1 + 2)		(56,013)	(308,002)
1. Cash received from financing activities:		247,664	—
(+) Subordinated liabilities	13.a	247,664	—
(+) Disposal of treasury shares	16.c	—	—
(+) Other cash received in relation to financing activities		—	—
2. Cash paid in investing activities:		(303,677)	(308,002)
(-) Dividends to shareholders	16.e	(137,592)	(126,636)
(-) Interest paid		(11,411)	(9,012)
(-) Subordinated liabilities	13.a	(154,524)	—
(-) Purchase of own securities (-) Other cash paid in relation to financing activities	16.c	— (150)	— (172,354)
D) EFFECT OF CHANGES IN EXCHANGE RATES		17,490	10,030
E) NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS (A + B + C + D)		52,967	(752,666)
F) CASH AND CASH EQUIVALENTS AT THE START OF THE PERIOD		1,373,741	2,126,407
G) CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD (E+F)		1,426,708	1,373,741
COMPONENTS OF CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD		Year 2024	Year 2023 (*)
(+) Cash and banks	6	1,408,534	1,322,329
(+) Other financial assets	6	18,174	51,412
TOTAL CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD		1,426,708	1,373,741

(*) Presented solely and exclusively for comparison purposes. See Note 2.e) of the accompanying Annual Report.

The accompanying Notes 1 to 22 described in the attached report and Appendices I and II are an integral part of the Consolidated Cash Flow Statement for 2024.

(Figures in thousands of euros)

(Grupo Catalana Occidente)

Notes to the Consolidated Financial Statements corresponding to the year ended on 31 December 2024

In accordance with current legislation on the content of consolidated financial statements, these Notes complete, elaborate on and provide a commentary on the consolidated balance sheet, profit and loss account, statement of recognised income and expenses, statement of changes in equity and cash flow statement (hereinafter the "consolidated financial statements"). Together with the financial statements, they form a whole, whose purpose is to provide a true and fair view of the consolidated assets and consolidated financial position of Grupo Catalana Occidente at 31 December 2024 and of the result of its activities, the changes in its equity and the cash flows registered in the year then ended.

1. General information on the parent company and its activities

1.a) Incorporation, term and registered address

Grupo Catalana Occidente, S.a. (hereinafter "the parent company" or "GCO") is a public limited company that was incorporated for an indefinite period on 18 July 1864, in Spain and initially under the name "La Catalana, Sociedad de Seguros contra Incendios a Prima Fija". In 1988 it changed its name to Catalana Occidente, S.A. and again in 2001 to the current one, as a result of the change in its corporate activities following the transfer of its entire insurance and reinsurance business to the subsidiary company Occident GCO, S.A.U. de Seguros y Reaseguros, by means of a non-monetary contribution of a branch of activity comprising all the assets and liabilities related to the transferred business and all its personnel.

The registered office of the parent company is at street Méndez Álvaro 31, Madrid (Spain).

1.b) Corporate purpose, legal framework and lines of business in which the Company operates

The Company's corporate purpose is to purchase, underwrite, hold, administer, swap and sell all manner of domestic and foreign securities and shares, for its own account and without engaging in brokerage activities, for the purpose of directing, administering and managing such securities and shares.

In carrying out these activities, especially as regards the securities of insurance undertakings and other companies whose activities are subject to the private insurance regulations in Spain, the parent company ensures that applicable legal requirements are met. The parent company is not directly involved in insurance activity, this is performed by subsidiary companies of the Group which have the corresponding legal authority. The Directorate General of Insurance and Pension Funds (hereinafter "DGSFP") performs the functions assigned under current legislation by the Spanish Ministry of Economic Affairs in relation to private insurance and reinsurance, insurance agency and brokerage services, capitalisation and pension funds.

The parent company directs and manages its capital investment in the other companies by organising human and material resources. These entities are mainly active in ancillary insurance activities, as well as in the provision of funeral services.

The insurance companies that depend on GCO operate in the following lines of business: life, credit, surety, accident, illness, health care, land, sea, lake and river vehicles (hulls), air vehicles, railway vehicles, transported goods, fire and natural elements, other damage to property (combined agricultural insurance, theft or other), civil liability (in land motor vehicles, air vehicles, sea, lake, river and rail vehicles, arising from nuclear risks or other risks), various pecuniary losses, legal defence, assistance and funeral business. The Group considers as "Occident" business line all the lines of business in which it operates except credit and surety lines, which are included in the "Atradius" business line.

Likewise, the subsidiary Occident Pensiones E.G.F.P., S.A.U. (formerly known as GCO Gestora de Pensiones, E.G.F.P., S.A.U.), hereinafter "Occident Pensiones", manages the pension funds "Occident Pensiones Renta Fija, FP", "Occident Pensiones Mixto Fijo, FP", "Occident Pensiones Renta Variable, FP", "Occident Pensiones Mixto Variable, FP", "GCO Pensiones Empleados, FP", "Occident Pensiones Colectivo, Fondo de Pensiones", "Cat Previsió, FP" y "Occident Pensiones Autónomos, FP". In addition, Occident GCO, S.A.U. de Seguros y Reaseguros is a promoting partner of "Occident Previsión, Entidad de Previsión Social Voluntaria Individual". The total amount of assets from managed funds and EPSV amounted to Ū808,144 thousand at 31 December 2024 (Ū707,812 thousand at 31 December 2023). The gross income earned from management fees of the various funds amounted to Ū7,047 thousand in 2024 (Ū6,151 thousand in 2023) and was recognised, net of the related marketing expenses, under "Other Technical Income" in the consolidated life insurance profit and loss account.

Also, the subsidiary company Grupo Catalana Occidente Gestión de Activos, S.G.I.I.C. ("GCO Gestión de Activos) manages the investment funds "GCO Mixto, IF", "GCO Acciones, IF", "GCO Eurobolsa, IF", "GCO Renta Fija, IF", "GCO Global 50, IF", "GCO Internacional, IF", "GCO Bolsa USA, IF" and "GCO Ahorro, IF" (see Note 7.a.2). The total amount of assets of the investments funds managed comes to Ū1,005,799 thousand at 31 December 2024 (Ū807,285 at 31 December 2023).

In view of the business activity carried out by the parent company and its subsidiaries, the Group has no environmental liabilities, expenses, assets, provisions or contingencies that might be material with respect to the Group's equity, financial position or results. Therefore, no specific disclosures are included in these notes to the consolidated financial statements with respect to information regarding environmental issues. Such environmental information is extensively detailed in GCO's Sustainability Report, which is included in the consolidated management report.

1.c) Group structure and distribution systems

The subsidiary Occident GCO, S.A.U. de Seguros y Reaseguros (hereinafter "Occident") and the subsidiary subgroup Atradius N.V. (hereinafter 'Atradius N.V.'), have their own independent organisational structure and network.

From an organisational standpoint, the companies comprising Grupo Catalana Occidente (hereinafter "the Group") have a structure involving centralised corporate functions and decentralised operations, with the following service centres: claim centres with staff distributed between Sant Cugat, Valencia, Madrid, Bilbao, Malaga, Santander, Sevilla and La Coruña and call centres with staff distributed between Sabadell, Madrid and Sevilla.

The Group has a territorial structure comprising 1,294 offices spread across Spain and 77 offices abroad.

To deliver personal and high-quality advice to customers, the Group distributes its products in Spain through an extensive sales network, consisting mainly of exclusive, full-time insurance agents. The Group also uses insurance brokers, part-time agents and other specialist distribution networks. On 31 December 2024 the Group worked with a total of 14,438 agents throughout Spain (14,709 agents at 31 December 2023).

The Group operates in more than 50 countries through Atradius N.V., which at 31 December 2024 had 2,368 intermediaries (2,425 at 31 December 2023).

In relation to the mediation channels, in accordance with Royal Decree-Law 3/2020, of 4 February, on urgent measures by which various European Union directives are incorporated into Spanish law in the areas of public procurement in certain sectors; private insurance; pension plans and funds; taxation and tax litigation, and by virtue of the application of the provisions of its Fifth Transitional Provision, all agency contracts in force are considered for all purposes to be insurance agency contracts on an exclusive basis. In this way, the following subsidiary companies act as exclusive Occident agency companies:

• • Occident GCO Mediadores, Sociedad de Agencia de Seguros, S.A.U. (see Note 5.c).
• • Occident Direct, S.L.U.
• • Nortehispana Mediación Agencia de Seguros, S.A.U.

1.d) Other information

All of the parent company's shares are listed on the Spanish Stock Exchange Interconnection System (Continuous Market). At 31 December 2024, the shares traded at Ū35.90 per share (Ū30.90 per share at 31 December 2023).

2. Basis of presentation for consolidated accounts

2.a) Regulatory framework of financial reporting applicable to the Group

These consolidated financial statements have been produced by the Board Members of the parent company in accordance with the financial reporting regulatory framework applicable to the Group, which is established by:

• a) The Spanish Code of Commerce and other commercial legislation.
• b) The International Financial Reporting Standards (hereinafter, "IFRS") as adopted by the European Union through EU Regulations, pursuant to Regulation (EU) no. 1606/2002 of the European Parliament and of the Council of 19 July 2002 and subsequent amendments thereto.
• c) Royal Decree 1060/2015 of 20 November, on the Regulation, Supervision and Solvency of Insurance and Reinsurance Entities (hereinafter "ROSSEAR") and the regulatory provisions established by the Directorate General of Insurance and Pension Funds.
• d) Law 20/2015, of 14 July, on Organisation, Supervision and Solvency of Insurance and Reinsurance Entities (hereinafter, "LOSSEAR").

2.b) True and Fair View

The Group's consolidated financial statements have been obtained from the accounting records of the parent company and its subsidiaries and investees are presented in accordance with the financial reporting regulatory framework applicable and in particular the accounting principles and criteria it contains. Therefore they present a true reflection of the equity, financial position, results of the Group and cash flows for the year concerned. These consolidated financial statements were prepared by the Board of Directors of Grupo Catalana Occidente, S.A. at their meeting on 27 February 2025, shall be subject, as well as those from investee companies, to the approval by the respective Annual General Shareholders' Meeting. The 2023 consolidated annual financial statements were approved by the Annual General Shareholders' Meeting of Grupo Catalana Occidente, S.A. which was held on 25 April 2024.

The Group's consolidated financial statements have been prepared from accounting records maintained by the parent company and the other companies of the Group and include certain adjustments and reclassifications to standardise the principles and criteria used by the various companies integrated into GCO.

As recommended by IAS 1, assets and liabilities are generally classified in the balance sheet according to their liquidity, but not by classifying assets and liabilities as current or non-current, which is more relevant for the purposes of insurance groups. As with other insurance groups, expenses in the profit and loss account are classified and presented according to their nature.

2.c) Responsibility for information and matters subject to judgement and uncertainty

The information in these financial statements is the responsibility of the Board Members of the parent company, who have taken due care to ensure the effective operation of the various controls put in place to guarantee the quality of financial and accounting information, both for the parent company and the companies of the Group.

In preparing the consolidated financial statements, judgements and estimates were occasionally made by the management of the parent company and of the consolidated companies, which were subsequently ratified by the Board Members, and these judgements and estimates relate, inter alia, to:

• The fair value of certain unlisted financial assets (Notes 3.b.3).
• Impairment of financial assets (Note 3.b.5).
• Significant increase in credit risk (Note 3.b.3).
• The useful life of the property, plant and equipment and investment property (Notes 3.c and 3.d) and intangible assets (Note 3.e).
• The determination of the recoverable amount of goodwill on consolidation and other intangible assets with a definite and indefinite useful life (see Note 3.e).
• Determining the recoverable amount of brands and administrative concessions (Notes 3.e.3 and 5.a).
• The assessment of the recoverability of certain deferred tax assets (Note 3.h).
• The actuarial assumptions for the calculation of pension liabilities and commitments, in addition to the assumptions taken into account in other non-technical provisions of an occupational nature (Note 3.j).
• The determination of the discount rate used in the calculation of the financial liability arising from leases subject to IFRS 16 (Note 3.c.2).
• The identification of investment components (Note 3.i.2).
• Interpretation of the limits of the contract (Note 3.i.4).
• The hedging unit allocation method (Note 3.i.5.1).
• Assumptions and hypotheses included in the calculation of current future cash flows, discount rate and risk adjustment for non-financial risk (Note 3.i.5.1).

The aforementioned judgements and estimates have been made taking into account the current risk environment described in Note 4.

These estimates affect both the amounts recorded in the balance sheet and profit and loss account and those appearing in the statement of recognised income and expenses. Although they were prepared using the best information available, future events may make it necessary to revise these estimates (upwards or downwards) in coming years. Any such revisions would be applied prospectively, recognising the effects of the changed estimates in the consolidated financial statements.

2.d) New and revised standards

2.d.1) Standards, amendments and interpretations adopted in 2024

New accounting standards and/or amendments have come into force in 2024 which have naturally been taken into account in preparing the attached consolidated financial statements.

• • Amendment to IAS 1 Classification of Liabilities as Current or Non-current: Presentation of financial statements - Classification of liabilities as current or non-current
• • Amendment to IAS 1 Non-current liabilities with conditions ("covenants"): Seeks to improve the information provided when the right to defer payment of a liability is subject to the fulfilment of conditions ("covenants") within twelve months after the reporting period.
• • Amendment to IFRS 16 Liability for Lease in a sale with leaseback: This amendment clarifies the subsequent accounting for lease liabilities arising on sale and leaseback transactions.
• • Amendment to IAS 7 and IFRS 7 Supplier financing arrangements: This amendment introduces disclosure requirements specific to supplier financing arrangements and their effects on the company's liabilities and cash flows, including liquidity risk and associated risk management.

There are no accounting principles or measurement bases that have a material effect on the consolidated financial statements for 2024 that have not been applied in their preparation.

2.d.2) Standards, amendments and interpretations issued not in force

At the date these consolidated financial statements were authorised for release, the most significant standards and interpretations that had been published by the IASB but had not yet come into force, either because their effective date was after the date of the consolidated financial statements, or because they have not yet been adopted by the European Union (in the latter, only the most significant are included):

New standards, amendments and interpretations		Mandatory application for periods beginning as from:
Approved for use in the European Union:
Amendments and/or interpretations
Amendment to IAS 21: Lack of exchangeability	This amendment establishes an approach that specifies when one currency can be exchanged for another, and if not, determining the exchange rate to be used.	1 January 2025
Not approved for use in the European Union:
Amendments and/or interpretations
Amendments to IFRS 9 and IFRS 7: Classification and measurement of financial instruments	Its purpose is to address issues identified during the post implementation review of the classification and measurement requirements of IFRS 9 Financial Instruments: derecognition of a financial liability settled by electronic transfer, classification of financial assets and disclosures.	1 January 2026
Annual improvements to IFRS (Volume 11)	The aim is to improve the quality and consistency of the standard, including clarifications, simplifications, corrections and changes to the following standards: IFRS 1 - First-time Adoption of International Financial Reporting Standards; IFRS 7 - Financial Instruments: Disclosures; IFRS 9 - Financial Instruments; IFRS 10 - Consolidated Financial Statements and IAS 7 - Statement of Cash Flows.	1 January 2026
New regulations
IFRS 18 Presentation and Disclosures in Financial Statements	The aim of this new standard is to establish requirements for the presentation and disclosure of financial statements, thereby replacing IAS 1 Presentation of Financial Statements, which is currently in force.	1 January 2027
IFRS 19 Disclosures by non-publicly accounted subsidiaries	The aim of this standard is to set out the disclosures that a subsidiary may optionally apply in issuing its financial statements.	1 January 2027

The Group has not made plans for the anticipated application of the aforementioned standards and interpretations and in any case their application will be subject to consideration by the Group upon approval, if applicable, by the European Union.

2.e) Comparison of information

The consolidated financial statements for 2024 are presented comparatively with the previous year, pursuant to the requirements of IAS 1 - Presentation of Financial Statements.

2.f) Consolidation principles

The Group's scope of consolidation was defined according to the provisions of IFRS 10 – Consolidated and Separate Financial Statements and IAS 28 – Investments in Associates (see Appendices I and II).

These consolidated financial statements for 2024 include all the companies of the Group, using the consolidation methods applicable in each case, in accordance with Article 42 of the Código de Comercio (Spanish Commercial Code). The parent company is not required to prepare consolidated financial statements with a scope greater than that of these consolidated financial statements, as it is itself part of a group headed by CO Sociedad de Gestión y Participación, S.A. which prepares its consolidated annual financial statements separately.

2.f.1) Subsidiaries

Subsidiaries are considered to be those entities in which the Group has control, i.e. when it is exposed to or has variable rights of return on the entity and has the capacity to influence such returns.

Appendix I to this Annual Report contains significant information on these companies and Note 5 provides information about the most significant changes during 2024 and between the balance sheet date and the date these financial statements were authorised for release.

The annual financial statements of subsidiaries are fully consolidated with the Group financial statements by aggregating assets, liabilities, net equity and income and expenses of a similar nature, which are recognised in the individual financial statements after harmonisation and restatement to comply with IFRS. The carrying amount of direct and indirect interests in the equity of subsidiaries is offset against the portion of the net assets of the subsidiaries that each represents. All other material balances and transactions between consolidated companies are eliminated on consolidation. In addition, third-party ownership interests in the Group's equity and in profit for the year are presented under the headings "Minority Interests" in the consolidated balance sheet and "Profit attributable to minority interests" in the consolidated profit and loss account, respectively.

The individual financial statements of the parent and subsidiaries used in preparing the consolidated financial statements are prepared with the same reporting date.

The consolidation of the profits generated by the companies acquired in a financial year is carried out taking into account only those relating to the period between the date of acquisition and the end of that financial year. In the case of subsidiaries that cease to be subsidiaries, the results are included up to the date on which they cease to be a Group subsidiary, and the assets and liabilities of the subsidiary and any minority interest or component of the equity.

In cases where the Group increases its share of a subsidiaries' voting rights, any difference between the cost of the new acquisition and the additional portion of net assets acquired is calculated on the value at which they were accounted for in the consolidated accounting records.

Regarding holdings in investments funds managed by companies of the Group where the holding in them is above 20%, the Group opts not to consolidate, taking into consideration the provisions of IAS 8 Accounting policies, changes in accounting estimates and errors, section 8, which indicates that the accounting policies do not need to be applied when the effect of the use is not significant. The holdings in said funds are classified in the section "Financial investments - holdings in investment funds".

The effect of consolidating on 31 December 2024, the funds which the Group has control over (i.e. GCO Acciones, IF; GCO Eurobolsa, IF and GCO Bolsa USA IF; see Note 7.a.2), would imply an increase in the assets and liabilities of the financial situation statement of Ū19,697 thousand, which is 0.1% of the total assets (Ū18,146 thousand 0.1% of the total at 31 December 2023).

In application of IAS 8, the Group will proceed to consolidate its holding in said funds in the case of evaluating the effect of consolidation as significant in later years.

2.f.2) Associates

Associates are entities, other than subsidiaries, over which the Group has significant influence, i.e. the power to participate in the financial and operating policy decisions of the investee but not to exercise full or joint control over it.

In general, it is presumed that the Group exercises significant influence if it holds, directly or indirectly, 20% or more of the voting power of the investee, unless it can be clearly demonstrated that such influence does not exist.

However, the entity CLAL Crédit Insurance Ltd., where the Group holds less than 20% of voting rights, is considered an associate company because the Group is able to exercise significant influence over it.

Appendix II provides relevant information about these entities.

Associates are integrated in the consolidated annual financial statements using the equity method, whereby the investment is initially recognised at cost and subsequently adjusted to reflect any changes in the Group's share of net assets of the investee. The Group's results for the year include its share of the profit or loss of investees, less any treasury shares held by each investee, after deduction of dividends and other appropriations.

The Group's share in discontinued operations is recognised separately in the consolidated profit and loss account, while its share in the changes that associates have recognised directly in equity are also recognised directly in the Group's net equity, with the details being recorded in the statement of recognised income and expenses.

In applying the equity method, the most recent available financial statements of each associate are used.

If an associate uses accounting policies other than those used by the Group, the appropriate adjustments are made to make the associate's accounting policies consistent with those of the Group.

If there is any indication of an impairment loss in the investment in the associate, the impairment loss is deducted in the first place from any remaining goodwill in the investment.

Notes 5 and 8 to the consolidated Annual Report give details of the significant new acquisitions in 2024 in associates, any increases in the Group's holdings in the capital of companies already classified as affiliates at the start of the year, as well as information on the sale and loss through impairment of holdings, if any.

2.g) Offsetting

Asset and liability balances are offset and therefore recorded in the consolidated financial statements on a net basis if, and only if, they arise from transactions in which offsetting is contractually or legally permitted and which the Company intends to settle on a net basis or realise the asset and settle the liability simultaneously.

2.h) Financial information by segment

IFRS 8 – Segment Reporting confirms the principles governing the preparation of financial information by business lines and geographical area.

Segment information is presented according to the control, monitoring and internal management of the Group's insurance activities and results and is prepared for all the insurance lines and sub-lines which the Group operates, taking the Group's structure and organisation into account. The Board of Directors of Grupo Catalana Occidente is the highest body in terms of making operational decisions to define the operating segments.

The current management of the business is based on financial information reported to Group management under IFRS4 and IAS39 and, therefore, segment and geographical information (Note 18) is broken down under the accounting principles established by these standards, until the business is managed and decisions are made based on financial information reported (including the consolidated management report) under the principles established in IFRS 9 and 17 (accounting standards applicable to these financial statements).

The Group has defined the main segments as those corresponding to "Occident", "Atradius" and "Mémora" (see Note 1.b).

The "Occident" business line includes life insurance and non-life insurance, which are subject to the risks and returns inherent to the insurance business. Life insurance groups together all those insurance contracts that guarantee hedging of a risk that may affect the existence, physical integrity or health of the insured party; and non-life insurance groups together insurance contracts other than life insurance, which may be broken down into the branches of motor, multi-risk and other various types of insurance.

In addition, "Occident" includes Other activities to group together all operating operations other than, or not related to, the insurance or funeral business itself. Thus, the income and expenses included in this category include the results of the Group's subsidiaries that do not directly carry out insurance or funeral activities, as well as other income and expenses, as detailed in Note 18.

The "Atradius" business line includes credit and surety business and consists mainly of the insurance business of Atradius N.V., which is active both domestically and internationally.

Each of the insurance companies directly or indirectly controlled by the Group may be classified as a single-line or multi-line company, based on the definition of insurance lines provided by the DGSFP. Note 1.b gives details of the specific lines in which the Group is authorised to operate.

Within the "Mémora" business line are included the funeral services provided by the dependent subgroups Grupo Mémora and Grupo Asistea, whose activity is conducted in Spain and Portugal.

The accounting policies applied by each of the segments are the same as those used for preparing and presenting the Group's consolidated financial statements, including all the accounting policies relating specifically to financial information of the segments.

The rules for allocating assets and liabilities and income and expenses to the Group's segments are as follows:

Allocation of assets and liabilities to the segments

Assets for each segment are those relating to the Group's insurance and complementary operations that are used by a segment to provide its services, including assets that are directly attributable to the segment or that can reasonably be allocated to it.

Segment assets include investments accounted for by the equity method, based on the allocation of these investments in the "Investment Book" of each dependent subsidiary. The profit or loss from such investments is included in the ordinary profit or loss of the segment in question.

Segment liabilities include the Group's share of the liabilities arising from the segment's activities that are directly attributable to the segment or can reasonably be allocated to it. If the segment result includes interest expense, the related interest-bearing liabilities are included in segment liabilities.

Allocation of Income and Expenses to the segments

Income and technical expenses arising from insurance operations are allocated directly to the Occident and Atradius segments respectively and, in the case of Occident, to its various activities, depending on the nature of the operation from which they arise.

Financial income and expenses are allocated to the segments according to the prior allocation of the assets that generated the income or expense in question, as shown in the each company's "Investment Book". The same financial instrument may be allocated to more than one segment. The Group's share of the profits/(losses) of associates, which is shown separately in the income statement, has been allocated to the different segments on the basis of the percentage of the investment that each segment represents within each investment portfolio.

The aforesaid financial income and expenses is allocated between the various non-life insurance mainly on the basis of the technical provisions established for each of the lines in question. Likewise, the income and expenses deriving from equity securities and other financial instruments not directly related to the insurance business are assigned to 'Other Activities'.

All other non-technical and non-financial income and expense directly or indirectly related to the different segments has been assigned to the corresponding segments directly, according to the segment that generated it or on some other fair basis. In the latter case, a cost allocation method based on functional activities has been used. This involves identifying the activities and tasks performed in each business process and allocating to each activity the resources it uses or generates. Thus, in the accompanying consolidated profit and loss account, part of the overheads are presented under the headings 'Benefits and expenses incurred', 'Amortisation of acquisition costs', 'Change in claims liabilities incurred', 'Income / (expenses) from property, plant and equipment and investment property' and 'Other expenses'.

The appendices to the Group's consolidated financial statements and Note 18 provide consolidated segment financial information, including breakdowns of ordinary income and expense and segment assets and liabilities, as well as any assets and liabilities which have been excluded or have not been allocated. This information is provided independently of the obligation under Spanish GAAP, applicable to the Spanish insurance companies included in the consolidated group, to disclose accounting and statistical information to the DGSFP.

The Group has aligned the segment reporting note consistently with the information used internally for management reporting and with that presented in other public documents.

2.i) Cash flow statement

The following expressions are used in the cash flow statement:

• Cash flows: inflows and outflows of cash and cash equivalents. Cash equivalents are highly liquid short-term investments, with a maturity of less than three months which are readily convertible into specific cash amounts and are subject to negligible risk of changes in value.
• Operating activities: activities typical of insurance companies and other activities that cannot be classified as investment or finance activities.
• Investing activities: those of acquisition, sale or other disposal of long-term assets and other investments not included in cash equivalents.
• Financing activities: activities that result in changes in the size and composition of equity and of the liabilities that are not part of operating activities. Transactions with own shares are considered financing activities. Dividends paid by the parent company to its shareholders are also included in this category.

3. Significant accounting principles and policies and measurement bases used in the consolidated accounts

The main accounting principles required by legislation, as well as accounting policies and measurement bases used in preparing the Group's consolidated financial statements are as follows:

3.a) Cash and other cash equivalents

This balance sheet item consists of liquid assets, including cash, sight deposits, and cash equivalents.

Cash equivalents are highly liquid short-term investments, with a maturity of less than three months which are readily convertible into specific cash amounts and are subject to negligible risk of changes in value.

3.b) Financial instruments

3.b.1) Recognition

Financial instruments are recognised in accordance with IFRS 9 Financial Instruments.

3.b.2) Classification of financial instruments

The criteria established by the accounting regulatory framework for the classification of financial assets according to the following variables: the entity's business model and the contractual cash flow characteristics of the assets. Accordingly, the Group classifies its financial assets as follows:

• (i) Financial assets at amortised cost: the aim of their business model is to hold the financial asset in order to collect contractual cash flows and, according to the terms of the contract, cash flows are received on specific dates that exclusively constitute payments of principal plus interest on such principal. Interest, impairment and exchange differences are recorded in income.
• (ii) Financial assets at fair value through other comprehensive income (FVOCI): the business model has the aim of both obtaining contractual cash flows and selling them and, according to the terms of the contract, cash flows are received on specific dates that exclusively constitute payments of principal plus interest on such principal. Interest, impairment and exchange differences are recorded in income, as well as in the amortised cost model. Other changes in fair value are recorded in equity and may be recycled to profit or loss on their sale.
• (iii) Financial assets at fair value through profit or loss (FVPL): a financial asset shall be measured at fair value through profit or loss unless it is measured at amortised cost or at fair value through other comprehensive income.

This category includes instruments that do not meet the SPPI ("solely payments of principal and interest") test and holdings in investment funds, since this type of instrument does not meet the definition of equity instruments in accordance with IAS 32 and, consequently, cannot be measured at fair value through other comprehensive income and must be measured at fair value through profit or loss.

In addition, the Group has considered the application of irrevocable designation options at initial recognition:

a) An equity instrument (meeting the requirements of IAS 32), as long as it is not held for trading purposes, may be classified at fair value through other comprehensive income (equity), but may not be recycled to profit or loss on sale, and only dividends are taken to profit or loss.

The Group has assumed that equity securities represent investments that the Group intends to hold for long-term strategic purposes. As permitted by IFRS 9, it has designated these investments as "fair value through other comprehensive income".

b) A financial asset may also be designated for measurement at fair value through profit or loss if doing so reduces or eliminates an accounting mismatch.

Investments in associated entities are accounted for under the specific sub-heading of "Investments in entities accounted for using the equity method".

A financial liability is a contractual obligation requiring the Group to deliver cash or another financial asset to another entity or to exchange financial assets or financial liabilities with another entity on terms that are potentially unfavourable. Financial liabilities include those debits and payables that the Group has and that have arisen from the purchase of goods and services in the ordinary course of the company's business.

Financial liabilities are classified into the following categories: "Financial liabilities held for trading" and "Financial liabilities at amortised cost". In particular, financial liabilities that are not classified as held for trading are recorded in the "Financial liabilities at amortised cost" portfolio. Balances recorded in this category include subordinated liabilities, as well as accounts payable and deposits linked to the insurance business. Trade payables falling due in less than one year without a contractual interest rate are carried at their face value at both initial recognition and subsequent measurement, provided that the effect of not discounting flows is not significant.

No securities have been issued that are convertible into shares of the parent company or that grant privileges or rights which may, under certain circumstances, make the securities convertible into shares. The Group's most significant financial liabilities relate to the subordinated debt issued by Atradius N.V. (see Note 13.a).

At 31 December 2024, neither the parent company nor any other Group company has guaranteed any other debt securities issued by associates or third parties unrelated to the Group.

3.b.3) Measurement of financial instruments

The Group requires that, on initial recognition, a financial asset or financial liability is measured at fair value, increasing or decreasing, in the case of a financial asset or financial liability that is not carried at fair value through profit or loss, transaction costs that are directly attributable to its acquisition or issue.

After initial recognition, an entity shall measure a financial asset: i) at amortised cost; ii) at fair value through other comprehensive income; or iii) at fair value through profit or loss.

The fair value of a financial instrument on a given date is taken to be the amount for which the asset could be exchanged between knowledgeable, willing parties who are properly informed and in a mutual independence condition. The most objective and common reference for the fair value of a financial instrument is the price that would be determined on the basis of the quoted prices published in the active market. When such reference exists, it is used to measure the financial asset. However, in certain cases the price quotations provided by the various counterparties who would be willing to exchange a certain financial asset or the prices indicated by the contributors are also considered.

In the absence of an active market for a financial instrument, the Group determines fair value using generally accepted techniques.

In addition, the Group has contracted the service of structured investment valuation with an independent expert from the Management, Serfiex, a specialist in the sector. This service enables the valuations provided by the contributors to be compared with internal valuation methods. For those structured investments where liquidity is not guaranteed through the contributor being quoted on an active market, the Group recognises the market value calculated by Serfiex.

Financial instruments are therefore classified into to three levels, according to the inputs used to determine their fair value:

– Level 1: the measurement is performed directly using the quoted price of the financial instrument, which is observable and available from independent price sources and refers to active markets accessible to the entity at the measurement date.

– Level 2: for instruments for which there is no directly observable price, their fair value is estimated by applying commonly accepted measurement techniques, where the variables used are based on observable market data.

These mainly include fiduciary deposits and fixed income assets associated with interest rate swaps, for which the Group has the separate measurement of the bond and the swap. The measurement of these assets, in most cases, are obtained using the Current Value Method (discounted future cash flows) obtained directly from the counterparty or calculated internally. This measurement technique uses the future cash flows of each instrument, which are established in the various contracts signed with the counterparty, discounted using the market curve plus a credit spread, both of which are observable.

– Level 3: instruments are measured using measurement techniques that use specific and significant variables that are not obtained from observable market data.

These mainly include equity assets, where the realisable value is generally estimated on the basis of the individual characteristics of the asset. In these cases, the measurement is usually carried out by asking a third party for a reference measurement. The main valuation technique used is the Net Asset Value or Theoretical Book Value of the holding and, additionally, for holdings in investment funds, the net asset values not published by management companies. Net Asset Value represents the most recent available net total value of the company's assets less liabilities, applying the percentage of ownership interest in the company.

The measurement models used are selected and validated by the Group's management.

Instruments measured at amortised cost are measured taking into account the effective interest rate method. Amortised cost is taken to be the amount at which the financial instrument was initially measured, minus principal repayments, plus or minus, as appropriate, the cumulative gradual amortisation or allocation, using the effective interest rate method, of any difference between that initial amount and the redemption value upon maturity, minus any reduction for impairment or non-collectability.

Financial investments shall be derecognised when the rights to receive cash flows have expired or when practically all the risks and rewards of ownership of the financial asset have been transferred. If there are transfers of assets in which control is maintained, the accounting asset continues to be recognised.

3.b.4) Recognition of changes in measurements of financial instruments

A gain or loss arising from a change in the fair value of a financial asset or financial liability that is not part of a hedging transaction is recognised as follows:

• The unrealised gain or loss on a financial asset or liability at fair value through profit or loss (including those relating to 'investments for the account of holders that assume the investment risk', is recognised in the profit and loss account for the year under the subheading "Net gain / (loss) on financial instruments".
• The unrealised gain or loss on a financial asset at fair value through other comprehensive income is recognised directly in equity under the heading "accumulated other comprehensive income" until the financial asset is derecognised, except for impairment losses and foreign exchange gains or losses. In the case of equity financial assets classified as "Financial assets at fair value through other comprehensive income", where an irrevocable decision has been made to present changes in fair value through other comprehensive income, foreign exchange differences are recognised in equity under "Accumulated other comprehensive income". On derecognition the gain or loss that has previously been recognised in equity is recorded in reserves for the year.

However, interest calculated using the effective interest method is recognised in profit or loss. Dividends on an equity instrument classified as an "asset at fair value through other comprehensive income" or "financial asset at fair value through profit or loss" are recognised in profit or loss when the Group's right to receive payment is established.

When a financial asset recognised at amortised cost is derecognised or impaired, or the effective interest rate method is applied to it, the resulting income and expenses are recognised through the profit and loss account. This category also includes those financial assets without price disclosure and other related assets associated with "Investments for the benefit of holders that assume the investment risk" (short-term deposits with credit institutions and current accounts).

3.b.5) Impairment of financial instruments

The Group applies the impairment requirements to financial assets measured at amortised cost and those measured at fair value through other comprehensive income.

Impairment losses for the period on debt instruments are recognised as an expense under "Impairment losses on credit risk" in the profit and loss account. Impairment losses on debt instruments at amortised cost are recognised against an allowance account that reduces the carrying amount of the asset, while those at fair value through other comprehensive income are recognised against accumulated other comprehensive income.

The amount of impairment loss allowances is calculated based on whether or not there has been a significant increase in credit risk since the initial recognition of the transaction, and whether or not an event of default has occurred. The Group assumes that the credit risk of a financial instrument has not increased significantly since initial recognition if the credit risk of that instrument at the reporting date is determined to be low, i.e. equivalent to an Investment Grade credit rating (AAA to BBB-), which results in recognising an impairment provision for 12-month expected credit losses. The Group has defined a set of indications that identify events of default (Stage 3) and significant increases in risk (Stage 2) at the transaction level for all financial instruments measured at amortised cost and at fair value through other comprehensive income, assuming that the so-called expected credit loss is recognised over the life of the transaction.

The main issues to be taken into account in the Group's estimate of the expected loss are as follows:

• Probability of default (PD) and Loss given default (LGD) ratio: need to define the parameters incorporating a forward looking view.
• Debt size or exposure at default (EAD): need to define credit conversion factors for undrawn commitments, as well as early amortisation assumptions.
• Discounted flows: consideration of the effective interest rate (EIR) or adjusted EIR for those assets acquired or originated as impaired (known as "Credit impaired").

The credit risk of financial investments is determined on the basis of an average of the four rating agencies S&P, Moody's, Fitch and DBRS, known as a rating composite. In turn, these are grouped into higher levels called buckets, so that each financial asset in the Group will have one bucket assigned at initial recognition of the asset and another assigned at the reporting date based on the combined rating at the reporting date.

For equity instruments without a price listed in the section "Investment in entities accounted for using the equity method", the Group undertakes deterioration tests according to the methodology described in Note 3.e.1).

3.c) Property, Plant and Equipment

3.c.1) Buildings, improvements in own buildings, transport elements, data processing equipment and other tangible fixed assets

Under this balance sheet item, the Group records all owner-occupied properties and those occupied by Group companies and those under construction or development for future use as properties for own use.

"Property, plant and equipment" also includes transport equipment, furniture and fixtures, and computer hardware.

Property, plant and equipment assets are stated at acquisition or construction cost, less accumulated depreciation and, where applicable, accumulated impairment losses, but never at less than their residual value. The cost of additions and improvements that expand the capacity or floor area, increase the returns or extend the useful life of property held by the Group subsequent to initial recognition are capitalised and recorded under "Other property, plant and equipment". Conversely, upkeep and maintenance costs are expensed to the profit and loss account in the year incurred.

When payments on acquisition of a property are deferred, their cost is the cash price equivalent. The difference between the cash price equivalent and the total payment is recognised as interest expense over the deferred period.

In general, the Group applies the straight-line systematic depreciation method to the acquisition cost, excluding the residual value, over the following estimated useful lives:

Property, plant and equipment items	Estimated useful life
Property (excluding land)	Between 33 and 77 years
Improvements to owner-occupied property	10 years
Transport equipment	Between 5 and 7 years
Data processing hardware	Between 3 and 5 years
Other property, plant and equipment	Between 3 and 10 years

Property under construction is depreciated from the moment it is in a usable condition.

The values and the residual lives of these assets are reviewed at each balance sheet date and adjusted as appropriate. The recognised carrying amount of an asset is immediately reduced in line with its recoverable amount if the carrying amount is greater than the estimated recoverable value. Profits and losses on disposal are calculated by comparing the net sale proceeds with the recognised carrying amounts.

The market value of owner-occupied property indicated in Note 9.a) to the consolidated financial statements has been obtained from appraisals carried out by independent experts. The generally used measurement methods correspond to the methodology established in the Order ECO/805/2003, of 27 March, partially amended by Order EHA 3011/2007, of 4 October: the method of comparison, the method of cost, the residual abbreviated method and the method of income update, depending on the characteristics of the asset to be measured.

These measurements correspond to Level 2 and Level 3 of the hierarchy of fair value established by IFRS 13 Valuation of the fair value (see Note 3.b.3), depending on whether said value is determined depending on variables observed in the market or on estimates where a significant variable is not based on observable market data, respectively.

Regarding the main inputs used in the mentioned measurement techniques, it should be highlighted that:

• The comparison method (based on the principle of substitution) values the property by comparison with other property values on the market and, based on specific information on real transactions and firm offers, current cash purchase prices are obtained for said properties in accordance with standardisation coefficients (Level 2);

• The cost method calculates the replacement or substitution value based on the elements necessary in order to achieve a property of the same characteristics (value of the land, cost of construction and the expenses necessary in current prices). This is mostly applicable to the valuation of all types of buildings and elements of buildings, in design, in construction or rehabilitation or finished) (Level 2);

• The residual abbreviated method is based on the fact that the value of each of the components (generally the value of the land or the building) is the difference between the total value of each asset and the values attributable to the costs of building in order to finish the property from its current status, residually obtaining the value of the land. Fundamentally applied to urban land or land that can be developed (Level 2);
• The income update method updates the anticipated future utility (cash flow anticipated from rent or from associated economic activity) and uses unobservable inputs such as the probability of future occupation and/or current or anticipated payment defaults (Level 3).

3.c.2) Leases

At the beginning of a contract, the Group assesses whether it is a lease. A contract is a lease if it gives the customer the right to exercise control over the use of the identified asset for a period of time in return for a consideration, i.e. the Group is entitled to obtain substantially all of the economic benefits from the use of an identified asset and has the right to direct the use of that asset.

As Lessee

At the commencement of the lease, the Group recognises an asset for right of use and a liability for lease. The right-of-use asset is initially measured at cost, which includes the amount of the lease liability, any lease payments made before or at the inception of the lease, and any initial direct costs incurred less any incentives received. The lease liability is initially measured at the current value of the lease payments to be made, discounted using the interest rate implicit in the lease or, if this cannot be readily determined, the incremental borrowing rate of the lessee. The Group normally uses its incremental interest rate as a discount rate. This rate has been calculated for the different portfolios defined by the Group based on the economic environment, the durations of the contracts, the debt position of the Group and the quality of the underlying assets.

The right-to-use asset is subsequently depreciated using a straight-line method based on the shorter of the asset's useful life and the duration of the lease. The lease liability is subsequently measured at amortised cost using the effective interest method. The depreciation expense for the right of use and the interest expense for the lease liability are recorded separately in the profit and loss account.

The Group presents its assets by right of use under the heading 'Property, plant and equipment' in the balance sheet and the liabilities for leasing under the heading 'Debts and payables - Other debts'.

As Lessor

The Group classifies all leases in which it is the lessor as operating leases. Lease payments under operating leases are recognised as income on a straight-line basis in the profit and loss account.

3.d) Investment property

Under this balance sheet item, the Group records properties held for capital gains or long-term rental income that are not occupied by Group companies and those under construction or development for future use as investment property.

Also included under this item is land held for a currently undetermined future use and buildings that are currently vacant.

Some properties are partly held to earn rentals and partly owner-occupied. If the two parts can be sold separately, the Group accounts for the parts separately. Otherwise, dual-use property is classified as investment property only if the owner-occupied part is insignificant.

"Investment property" includes land and buildings held by the Group in full ownership. It is recognised at acquisition or construction cost, less accumulated depreciation and, where applicable, accumulated impairment losses, but never at less than its residual value. Acquisition cost consists of the purchase price and any expenses directly attributable to the acquisition (associated transaction costs). The acquisition cost of self-constructed investment property is the property's cost at the date when construction or development is complete.

The accounting treatment of the costs of any addition, modernisation or improvement and the impairment tests, depreciation methods and useful lives established for investment property are similar to those used for owner-occupied property (see Note 3.c).

The market value of the investment property indicated in Note 9.b) to the consolidated financial statements has been obtained in accordance with the valuation methods described in the previous section on owner-occupied property. In addition, the market value of investment property for noninsurance companies has been obtained from valuations under RICS standards, based on the rental update method and comparable market methods, described in the previous point.

3.e) Intangible assets

"Intangible assets" comprise all identifiable non-monetary assets without physical substance that arise as a result of an acquisition from a third party or are generated internally by a company of the Group. Intangible assets that are identifiable, have future economic benefits and are under the Group's control are recognised if, and only if, their cost can be reliably estimated and the future economic benefits associated with them are likely to flow to the Group.

The Group measures intangible assets initially at acquisition or production cost and subsequently at cost less any accumulated amortisation and impairment losses, and the accumulated amount of losses from value impairment, if any. To determine whether intangible assets are impaired, the Group applies IAS 36 – Impairment of Assets and subsequent interpretations.

Intangible assets may have an indefinite useful life - when, based on an analysis of all the relevant factors, it is concluded that there is no foreseeable limit to the period over which they are expected to generate net cash inflows for the consolidated entities - or a finite useful life, in all other cases, in which case the duration is assessed.

3.e.1) Goodwill on Consolidation

"Goodwill on Consolidation" reflects any positive consolidation differences arising from the acquisition of equity interests in subsidiaries. It is equal to the excess of the cost of the business combination over the net fair value of the identifiable assets, liabilities and contingent liabilities acquired, provided such excess cannot be assigned to specific tangible or intangible assets.

In accordance with the provisions of the IFRS 3, a maximum measurement period of one year from the date of acquisition is specified, during which the acquiring company can retroactively adjust the provision amounts recognised at the acquisition date, when additional information not known at the time of assignment is available.

Goodwill acquired through a business combination is not amortised, but is tested annually for impairment, or more frequently if there are signs of impairment.

The Group defines a Cash Generating Unit (CGU) as each of the companies in which it holds an interest, either directly or indirectly.

In accordance with the requirements established in IAS 36 Impairment of Assets, there is impairment when the book value of the CGU assigned to the goodwill is higher than the recoverable value of the same. For determination of the value or amount recoverable, the value is use is estimated. The value in use of the CGUs corresponding to the insurance activity is obtained through subtracting the distributable dividends, a technique that refers to the current value of the potential distributable dividends once the solvency requirements have been met. For CGUs relating to noninsurance activities, the discounted cash flow technique is used.

These values are estimated taking into account different parameters or variables such as the current macroeconomic environment (effect of inflation and interest rate hikes), the type of business, historical performance, etc. All the parameters used in the calculation are internally consistent with each other, as well as with the Group's strategic assumptions in general and for each business in particular.

The key assumptions on which the Group's Management has based its earnings projections to determine the current value of future cash flows from investments in companies belonging to the insurance activity, based on the periods covered by the most recent budgets or forecasts approved by the respective governing bodies, are as follows:

• Premium income: an annual increase is projected based on the business forecasts for each company for the coming years.
• Claims: the claim over premium ratio is projected based on the business forecasts for each company for the coming years.
• Operating expenses: maintenance of current ratios over premiums.
• Financial profit/(loss): according to company forecasts for the coming years and related to its existing asset portfolio and reinvestment expectations.
• Available capital: in the projections to obtain the cash flow and therefore the distributable amount, the withholding of cash flow necessary to obtain excess capital available over the Capital Required by Solvency II has been taken into consideration.

In addition, with regard to the key assumptions associated with investments relating to companies belonging to non-insurance activities, the Group's Management has made the following assumptions:

• Income from operation and investment in capital: an annual increase is projected based on the business forecasts for each company for the coming years.
• EBITDA margin level: there is a forecast depending on the evolution estimate for the business of each company.
• Investment in circulating capital in accordance with the collections period and the payment period in line with the historic averages in each company.

In all cases, the approach used to determine the values assigned to key assumptions reflect past experience and are consistent with external information sources available when they are prepared.

The Group continuously evaluates whether there are any signs that the value of the consolidation goodwill could have been impaired, based on internal and external factors that imply an adverse incidence in the same.

In the event of an impairment loss on goodwill, the loss is recognised in the income statement for the year in which the loss occurs and cannot be reversed either at the end of that year or in subsequent years. Furthermore, to this effect, the Group periodically carries out an exercise to update the projected cash flow in order to incorporate possible deviations to the recoverable value estimate and also evaluating the next year that the projections used in the test of the previous year did not significantly deviate from reality. On 31 December 2024, it was shown that the differences between the projections used in the previous test and the reality did not affect the conclusions of the previous analysis.

Goodwill attached to associates is included, purely for presentation purposes, in the carrying amount of the CGU. In order to determine a possible loss in value, this is verified for the entirety of the carrying amount of the investment, using IAS 36, and will be calculated using the comparison of the recoverable amount (the highest between the value of use of the fair value, minus the sales costs) with the carrying amount, provided that the application of IAS 36 shows that the CGU value may have been impaired. In order to determine the value of use of the CGU, the Group:

• Calculates the present value of the portion of the future cash flows the subsidiary is expected to generate that is attributable to the Group, taking into account all future cash flows projected to derive from the subsidiary's ordinary operations, plus any amounts expected ultimately to be realised on the sale, or disposal by other means, of the investment or asset in question; or,
• Updates the projected future cash flows it expects to receive by way of dividends and on the ultimate sale or other disposal of the investment.

Furthermore, as with the consolidation goodwill, the Group continuously evaluates whether there are any signs that the value of the consolidation goodwill related to associated companies could have been impaired, based on internal and external factors that imply an adverse incidence therein. To this effect, the Group periodically carries out an exercise to update the projected cash flow in order to incorporate possible deviations to the recoverable value estimate and also evaluating the next year that the projections used in the test of the previous year did not significantly deviate from reality. On 31 December 2024, it was shown that the differences between the projections used in the previous test and the reality did not affect the conclusions of the previous analysis.

3.e.2) Policy portfolio acquisition expenses

The amount of this balance sheet item corresponds basically to the difference between the price paid for an insurance business transfer and the related carrying amount. This item also includes amounts paid upon acquisition of a group of policies from various agents.

These assets are systematically amortised in the period of time when economic performance is anticipated, considering a maximum useful life of three to five years.

3.e.3) Other intangible assets

The specific accounting policies applied to the main assets included in Other intangible assets are described below:

Computer software

This balance sheet line consists primarily of deferred charges associated with the development of IT systems and electronic communication channels.

Acquired software licences are valued on the basis of acquisition costs and right of use of the specific software, provided they are expected to be used for several years, and are recorded as computer software acquired entirely from third parties. Also included in this line are the costs of third parties involved in developing software for the Group.

Where software is developed internally, the Group capitalises the expenses directly associated with the production of exclusive, identifiable computer software controlled by the Group, that is, the labour costs of the software development teams and the corresponding portion of associated indirect costs. The rest of the costs associated with the development or maintenance of internal projects are expensed as incurred.

Subsequent costs are capitalised only if they increase the future benefits of the related intangible assets. Recurring costs incurred as a result of modifications or updates of computer software or systems and system overhaul and maintenance costs are recognised in profit or loss as incurred.

Computer software is amortised systematically over its useful life, which is estimated to be a maximum of three to five years for software acquired from third parties and a maximum of ten years for software developed internally.

The Group assesses, at each balance sheet date, whether there is any indication of impairment of any asset. If any such indication exists, the Group will take into account the recoverable amount of the asset.

In assessing whether there is any indication that an asset may be impaired in value, the Group will consider the following factors at least:

(i) Evidence is available from internal reporting that indicates that the economic performance of the asset is, or will be, worse than expected.

(ii) During the year, significant changes have taken place or are expected to take place in the near future in the extent or manner in which the asset is used or is expected to be used, which will adversely affect the Group.

(iii) Evidence is available of the obsolescence or physical damage of an asset.

Administrative concessions

With respect to the classification of reversible assets associated with administrative concessions, the Group has followed the criteria established by IFRIC 12 Service Concession Arrangements.

In accordance with current regulations, the Group recognises under "Administrative concessions" the amount corresponding to the consideration paid in the concession agreements entered into, as well as the total cost incurred in the construction or acquisition of the works, facilities and other tangible assets necessary to provide the services associated with the concession agreement.

In this regard, IFRIC 12 regulates the treatment of public-private agreements for service concession contracts where:

• • the Grantor controls or regulates what services the concessionaire must use the infrastructure for, to whom it must provide those services, and at what price, and
• • the Grantor controls any significant residual interest in the infrastructure at the end of the term of the agreement.

In general, there are two clearly differentiated stages, a first stage in which the concessionaire provides and/or subcontracts construction or improvement services which are recognised by reference to the stage of completion in accordance with IAS 11 Construction Contracts, with a balancing entry in an intangible or financial asset, and a second stage in which a series of maintenance and/or operation services are provided for the aforementioned infrastructure which are recognised in accordance with IFRS 15 Income from Contracts with Customers.

The Group has recognised an intangible asset in accordance with paragraph 17 of IFRIC 12: "An operator shall recognise an intangible asset to the extent that it receives a right (a licence) to charge users of the public service. A right to charge users of a public service is not an unconditional right to receive cash because the amounts are subject to the extent to which the public uses the service". Concession contracts do not include payments guaranteed by the grantors.

The Group assesses the borrowings or generic financing assignable to concession agreements in order to determine whether they should be capitalised as an increase in the value of the asset. Intangible assets are amortised over the concession term on a straight-line basis, unless the pattern of use can be reliably estimated by reference to the demand or use of the public service measured in physical units, in which case this method is used as the depreciation method, provided that it is the most representative of the economic usefulness of the asset. Furthermore, tangible assets associated with the administrative concession are depreciated on a straight-line basis over the shorter of the useful life corresponding to the period between the acquisition of the asset and the remaining period of operation of the funeral parlour and the estimated useful lives detailed in Note 3.c.

Intangible assets from business combinations

In the case of the acquisition of control of new companies, the Group identifies intangible assets at the time of purchase and estimates them when they are considered significant and can be measured reliably. The identifiable assets acquired were brands, distribution networks, policies in the portfolio and administrative concessions, which are measured at fair value at the acquisition date and the related costs incurred by the acquirer are recognised as an expense in the year in which they are incurred.

The distribution networks and policies in the portfolio have a finite useful life and are therefore depreciated accordingly (ten years). In the case of trademarks, the measurement process determines whether their useful life is finite or infinite, and only those with a finite useful life are depreciated on the basis of their duration. Administrative concessions have a finite useful life and are depreciated according to the duration of each contract.

In addition, impairment tests are carried out at least annually regardless of the useful life of these assets.

3.f) Non-current assets held for sale and associated liabilities

Assets held for sale are generally recognised at the lower of their carrying amount and fair value, less estimated costs to sell, the latter being understood to mean all marginal costs directly attributable to their disposal, excluding any finance costs and corporation tax.

Non-current assets classified as held for sale are not depreciated.

Impairment losses of their carrying amount are recognised in the profit and loss account. Should the loss be reversed, the reversal is recognised in the profit and loss account for an amount equal to the impairment loss previously recognised.

3.g) Transactions in foreign currency

3.g.1) Functional currency

The functional currency of the parent company and of the subsidiaries that have their registered office in the European Monetary Union is the Euro. Certain subsidiaries of Atradius N.V. present their financial statements in the currency of the main economic environment in which they operate, so their functional currency is other than the euro.

The consolidated financial statements are presented in euros, the Group's presentation currency.

3.g.2) Rules for translation of foreign currency balances

Foreign currency balances are translated into euros in two steps:

• The foreign currency is translated into the functional currency (the currency of the main economic environment in which the subsidiary operates or into the euro in the case of companies domiciled in the Monetary Union), and
• The balances held in the functional currencies of subsidiaries whose functional currency is not the euro are translated into euros.

Translation of foreign currency into the functional currency:

Foreign currency transactions carried out by consolidated entities (or entities accounted for by the equity method) that are not domiciled in EMU countries are recognised initially at their equivalent value in the entities' functional currency, using the exchange rates prevailing at the transaction dates. Monetary items in foreign currency are subsequently translated to the companies' functional currencies using the closing rate. Similarly:

• Non-monetary items measured at historical cost are translated into the functional currency at the exchange rate at the date of acquisition,
• Non-monetary items measured at fair value are translated at the exchange rate on the date when the fair value was determined,
• Income and expenses are translated at the average exchange rates for the period for all the transactions performed during the year,
• The balances arising from non-hedging forward foreign currency/foreign currency and foreign currency/euro purchase and sale transactions are translated at the closing rates prevailing in the forward foreign currency market for the related maturity.

The Group follows the same rules when converting the foreign currency items and transactions of subsidiaries domiciled in the Monetary Union into euros.

Translation of functional currencies into euros:

The balances reported by consolidated entities (or entities accounted for by the equity method) whose functional currency is not the euro are translated into euros as follows:

• Assets and liabilities, at the closing rate,
• Income and expenses, using the average monthly exchange rates (unless the average is not a fair approximation to the cumulative effect of the rates in force at the transaction dates, in which case the rates prevailing on the transaction dates are used), and
• Equity, at the historical exchange rates.

3.g.3) Recording of exchange-rate differences

Exchange-rate differences arising on translation of foreign currency balances into the functional currency are generally recognised in the profit and loss account at their net amount. However:

• Exchange-rate differences arising on non-monetary items whose fair value is adjusted against equity are recognised in equity under "Other comprehensive income and accumulated in equity - Items that can be reclassified to profits - Available-for-sale financial assets".
• Exchange-rate differences arising on non-monetary items whose gains and losses are recognised in profit or loss for the year are also recognised in profit or loss, without differentiating them from other changes in fair value.
• Exchange-rate differences arising on translation of the financial information of subsidiaries denominated in functional currencies other than the euro are recorded in consolidated equity under the heading "Exchange-rate differences" until the subsidiary or associate concerned is removed from the balance sheet, at which time they are recognised in profit or loss.

3.g.4) Exchange rates used

The functional currencies of the most important subsidiaries and associates of Atradius N.V. and the currencies of the Group's other foreign currency balances are listed, showing their year-end and average exchange rate for the years ended 31 December 2024 and 2023:

	Year-end rate		Average annual rate
Currency	31/12/2024	31/12/2023	31/12/2024	31/12/2023
U.S. Dollar	0.963	0.905	0.947	0.915
Pound sterling	1.206	1.151	1.202	1.158
Australian Dollar	0.596	0.615	0.616	0.605

3.h) Company income tax

The company income tax charge for the year is computed on the basis of accounting profit before taxes, determined in accordance with generally accepted accounting principles in Spain and the other countries in which the subsidiaries of Atradius N.V. operate, adjusted for any permanent differences, these being differences between taxable profit (resulting from the application of the applicable legislation) and accounting profit before tax that do not reverse in subsequent periods and differences arising from application of the new IFRS in respect of which, likewise, no reversal will take place. When the differences in value are recognised in equity, the related income tax is likewise charged to equity.

Both temporary differences arising from differences between the carrying amount and the tax base of an asset or liability and, where assets are capitalised, tax assets arising from tax credits and rebates and tax losses give rise to deferred tax assets or liabilities. Such deferred tax assets or liabilities are measured at the tax rates that are expected to apply in the period when the asset is realised or the liability is settled.

The Group recognises deferred tax liabilities for all taxable temporary differences. Deferred tax assets are recognised only to the extent that it is considered highly probable that the consolidated companies will have sufficient taxable profits in the future against which the deferred tax asset can be utilised.

The assets and liabilities for deferred taxes are determined in application of the regulations and the tax rates approved or on the verge of being approved on the date of the balance sheet and which are anticipated to be applied when the corresponding deferred tax assets take place or the deferred tax liabilities are settled. In this regard, the Group has applied the mandatory exception to recognise and disclose information on deferred tax assets and liabilities related to Pillar Two income tax.

Current tax assets and liabilities are measured at the amount expected to be paid to or recovered from the tax authorities, using the statutory tax rates enacted or substantively enacted by the balance sheet date. Accordingly, the Group has calculated the corporate income tax at 31 December 2024 applying the tax regulations in force in companies registered in Spain and taking the various tax regimes for foreign companies into account (subsidiaries of Atradius N.V.).

As indicated in July 2014 by the IFRS Interpretations Committee, the Group recognises tax assets arising from payments required by the tax administration under inspection procedures in accordance with the provisions of IAS 12.

In accordance with IFRIC 23, the Group recognises under current and deferred tax assets and liabilities the amounts that the entity estimates to reflect the contingencies arising from litigation with the tax authorities in relation to corporate income tax.

3.i) Assets and liabilities arising from insurance and reinsurance contracts

The Group applies the requirements established in IFRS 17 – Insurance Contracts to all the insurance assets and liabilities recognised in its consolidated financial statements that derive from insurance contracts, as defined in this standard.

3.i.1) Definition and classification

The Group assesses whether the contracts meet the definition of an insurance contract, i.e. whether a significant insurance risk is accepted from another party by agreeing to compensate the policyholder if an uncertain future event occurs that adversely affects the policyholder. From this assessment it is concluded that all insurance contracts previously under the scope of IFRS 4 meet the definition of an insurance contract and therefore the introduction of IFRS 17 does not result in any reclassification. The Group assesses that contracts meet the definition of an insurance contract on a contract-by-contract basis and has not identified contracts that have the legal form of an insurance contract but do not transfer significant insurance risk (with the exception of managed vehicles: Investment and Pension Funds).

3.i.2) Segregation of components

The Group assesses its products to determine whether any of these components are distinct from insurance and whether they need to be separated and accounted for using other Standards. The Group has not identified components susceptible to segregation, so all components will be accounted for under IFRS 17.

Non-segregated investment components

Taking into account that the investment component is "the amount that an insurance contract requires the entity to reimburse the policyholder under any circumstances, regardless of whether the insured event has occurred", in Occident, the existence of a non-segregated investment component has been determined for the savings and annuity business (except for annuities with no surrender option or guaranteed payments). Therefore, such investment components will be accounted for under IFRS 17.

In the case of Atradius, the Group receives and pays the reinsurance commission. This component cannot be segregated and therefore this component will be accounted for under IFRS 17.

3.i.3) Aggregation

The Group defined the units of account based on the portfolio mix, year of issue and profitability, as detailed below:

• In terms of portfolios, the Group identifies portfolios by aggregating insurance contracts that are subject to similar risks and are managed together, depending on the characteristics of the product's main and supplementary guarantees and factors such as risk management, including ALM coordination, or claims management and settlement policy, among others, respectively.

Local credit business and surety business is managed at the level of the country that issued the insurance contracts. However, comprehensive credit insurance, special products and payment protection insurance are managed at Group level.

• • As for the second level of aggregation, on initial recognition the Group segregates contracts on the basis of their issuance, i.e. in annual cohorts.
• • Finally, each portfolio is broken down into three groups of contracts: (i) contracts that are onerous on initial recognition, (ii) contracts that, on initial recognition, have no significant possibility of subsequently becoming onerous, and (iii) the remaining contracts in the portfolio.

These groups represent the level of aggregation at which insurance contracts are initially recognised and measured and not subsequently reconsidered.

At Occident, for contracts accounted for under the Premium Allocation Approach (PAA), the Group determines that the contracts are not onerous at initial recognition, unless facts and circumstances indicate otherwise. For contracts measured under the General Model (or 'Building Block Approach' or 'BBA') and the Variable Fee Approach (or 'VFA'), the assessment of onerousness is performed at the individual contract level.

In Atradius, the Group monitors the profitability of contracts within the portfolios, as well as their financial and insurance exposure, with the aim of identifying potential onerous contracts at country or unit level. The assessment of onerousness at initial recognition is by portfolio. Only in very exceptional circumstances and for strategic reasons will contracts be issued that are onerous at initial recognition. In traditional credit insurance, the Group considers that contracts should not be grouped as onerous at initial recognition as the contracts are managed in conjunction with contracts yet to be recognised as a result of the ability to dynamically underwrite these risks.

3.i.4) Recognition and limits of the contract

The Group recognises groups of insurance contracts issued as of the earliest of the following dates: (i) at the beginning of the coverage period of the group of contracts; (ii) the due date of the first policyholder payment (in the absence of the contract maturity date, this is deemed to be when the first payment is received); and (iii) when the Group determines that a group of contracts becomes onerous.

The Group includes all future cash flows expected to arise within the limits of each of the contracts in the group in the measurement of a group of insurance contracts. The Group determines whether cash flows are within contract limits when substantive rights and obligations arise and exist during the reporting period in which the Group can force the policyholder to pay premiums or the Group has a substantive obligation to provide services to the insured party. The substantive obligation to provide services ends when:

• • the Group has the practical ability to reassess the risks of a particular insured party and as a result reassess the premium charged or the level of benefits provided by the premium to substantially reflect the new level of risk; or
• • the Group has the practical ability to re-assess the portfolio premium to fully reflect the risk of all policyholders and the Group's premium setting does not take into account risks beyond the next reassessment date.

In the case of Atradius the existence of credit limits (insured sales coverage) determines the existence of the insurance contract, and not the policy itself, although insured sales are grouped by policy and month in which they occur. The definition of the insured event, as well as the occurrence of the claim, have been aligned with the description included in the policy conditions (legal insolvency or prolonged default).

3.i.5) Measurement of insurance contracts issued

The liability (asset) for the remaining coverage represents the Group's obligation to investigate and pay valid claims under existing contracts for insured events that have not yet occurred and comprises (a) the cash flows arising from performance related to future services and (b) the Contractual Service Margin (CSM).

The liability (asset) for claims incurred includes the Group's liability to investigate and pay valid claims for insured events that have already occurred, other incurred insurance expenses arising from prior service coverage and includes the reserve for claims incurred but not yet reported.

3.i.5.1) Measurement model for contracts measured under BBA and VFA

In the case of Liability for Remaining Coverage (or "LRC"), the Group measures a group of contracts at initial recognition as the sum of the cash flows arising from expected performance within the contract boundary and the contractual service margin.

It should be noted that the general model (BBA) applies to Atradius and to those insurance contracts of the life business whose contract limits exceed one year and which do not have direct holding. In turn, the variable fee approach (VFA) applies to Unit Linked, which meet the conditions of direct holding contracts.

In the case of the Liability for Incurred Claims (LIC), which is measured under BBA, it should be noted that it is composed of the case-by-case reserve, the IBNR provision and the provision for internal settlement and claims expenses. Occident's IBNR provision for nonlife insurance for the IFRS 17 process is calculated by reserving line of business, by accident year and mainly using the global projection method. Based on this method, the IBNR provision is calculated by the chain ladder method, differentiating, if applicable, between mass claims and peak claims.

For Atradius, insurance contract liabilities are estimated on the basis of probabilityweighted expected future cash flows. The estimate of such liabilities is determined as the average of various scenarios derived from information on past events, current conditions and forecasts of future conditions. The estimated future cash flows are calculated using a deterministic scenario that represents the probability-weighted average of a range of such scenarios.

Administration expenses are allocated to contracts based on the premiums for each contract, while claims expenses are allocated based on the outstanding provision for each claim.

The date of occurrence of claims corresponds to the insolvency date or the end date of the extended period of default, in accordance with the policy conditions and in line with Solvency II. The incurred claims provision is calculated by applying the best estimate to reported claims on a case-by-case basis, and by applying claims input distribution models for the IBNR provision for mass claims.

The most common methods used for the estimation of incurred claims are the "chain Ladder" and the "Bornhuetter-Ferguson", which are the standard methods used by the industry for this type of claims.

Uncertainty in the estimation of future claims payments arises primarily from the frequency and severity of claims and uncertainties about future inflation rates leading to growth in claims and claims-related expenses. The assumptions used to develop estimates of future cash flows are reassessed quarterly and adjusted as necessary.

Initial recognition

Cash flows within the limits of the contract

The Group estimates the expected future cash flows for a group of contracts at portfolio level and then allocates them to the groups in that portfolio in a systematic manner.

Contracts with cash flows that are dependent on underlying items that do not meet the definition of direct holding contracts (indirect holding contracts)

There is a variation of the BBA, the Modified BBA approach, which is applied to those contracts measured by the BBA model where changes in financial variables have a material effect on the flows paid to the policyholder, which in the case of the Group would correspond to indexed universal life products.

Discount rate

The Group measures the time value of money using discount rates that reflect the liquidity characteristics of the insurance contracts and the characteristics of the cash flows, consistent with current market prices and excluding factors that influence the market prices of the reference assets but do not affect the flows of the insurance contracts. The Group calculates the discount rate using the bottom-up approach after the transition ("bottom-up") based on the risk-free curve and an illiquidity premium. The risk-free curve is mainly based on the curve published monthly by EIOPA (European Insurance and Occupational Pensions Authority). In Occident, the illiquidity premium is assimilated to the volatility adjustment, while in Atradius, an illiquidity premium of zero is applied as the liabilities are short-term insurance contracts.

The discount curves used at 31 December 2024 and 2023 are shown below:
------------------------------------------------------------------------	--

		31/12/2024				31/12/2023
	Currency	1	5	10	20	30	1	5	10	20	30
		year	years	years	years	years	year	years	years	years	years
Occident	EUR		2.47% 2.37% 2.50% 2.49% 2.58% 3.56% 2.52% 2.59% 2.60% 2.70%
Atradius (*)	EUR	2.01%		1.98% 2.08% 2.06% 2.23% 3.19%						2.79% 2.86% 2.83% 2.89%
	GBP		4.12% 3.80% 3.83% 3.97% 3.89% 4.74% 4.06% 3.99% 4.03% 3.89%
	USD	3.98% 3.70%		3.71%	3.71%					3.49% 4.50% 3.97% 3.99% 3.99% 3.72%

(*) The discount curve with a one-month time lag for 2024 has been used for Atradius.

Risk adjustment for non-financial risk

To estimate the non-financial risk adjustment for the liability (asset) for the remaining coverage and the non-financial risk adjustment for the liability (asset) for incurred claims of Occident, the Group uses the Value at Risk ("VaR") method. In the case of the non-financial risk adjustment for the liability (asset) for the remaining coverage of Atradius, the Group uses the Cost of Capital method by simplifying the calculation used in Solvency.

As for the calculation of Value-at-Risk in Occident for non-life insurance, this is done at "reserving line" level. The main assumptions are: (i) calculation separately for both "mass" and "peak" claims; (ii) normal distribution; (iii) the parameters used for this distribution are the "mean" of the present value of discounted future flows, without taking into account the provision for internal claims settlement expenses and the "standard deviation" depending on the method used to calculate the provision for outstanding claims "IBNR".

The Group allocates the total non-financial risk adjustment for life business at entity level to the groups based on each group's contributions to the underwriting SCR (Life and Non-Life).

The Group shall disaggregate, for life business, the change in the risk adjustment between the insurance service component and the financial component.

Applying the confidence level technique, the Group has estimated the probability distribution of the expected present value of the future cash flows of the insurance contracts at 31 December 2024 and 31 December 2023 and calculated the non-financial risk adjustment as the excess of the value at risk at the 70-80th percentile (target confidence levels) for Occident and at 87.5% (74% in 2023) for Atradius, over the expected present value of the future cash flow.

Contractual service margin (or "CSM")

CSM is a component of the total amount of a group of insurance contracts that represents the unearned profit that the Group will recognise as it provides insurance contract services during the period of coverage for the portfolio of insurance contracts existing at that date.

On initial recognition, the Group measures CSM at an amount that, unless a group of insurance contracts is onerous, results in no income being recognised in profit or loss arising from: (i) the expected cash flows arising from the fulfilment of the group of contracts; (ii) the amount of any assets derecognised for insurance acquisition cash flows allocated to the group; (iii) any other assets or liabilities previously recognised for cash flows relating to the group; (iv) any cash flows that have already arisen from the contracts at that date.

If a group of contracts is onerous, the Group recognises a loss on initial recognition.

Subsequent recognition

In estimating future cash flows arising from performance, the Group differentiates between those relating to claims and those relating to future service. At the end of each reporting period, the carrying amount of the group of insurance contracts shall reflect the estimated liability for the remaining coverage (LRC) at that date and the current estimate of Liability for incurred claims (LIC).

Changes in cash flows within contract boundaries

At the end of each reporting period, the Group updates the fulfilment cash flows for both LIC and LRC to reflect the current status of the estimated amounts, the estimated timing and uncertainty of future cash flows, as well as discount rates and other financial variables.

Experience adjustments related to current or past service are recognised in profit or loss. In the case of incurred claims liabilities (including IBNR) and other incurred insurance service expenses, experience adjustments always relate to current or past service. They are included in profit or loss as part of the insurance service expenses.

Experience adjustments related to future service are included in the liability for the remaining coverage by adjusting the CSM. The release of the CSM depends on whether the contract is without holding, indirect holding or direct holding in the performance of the specified underlying elements.

Contracts with cash flows that are dependent on underlying items that do not meet the definition of direct holding contracts (indirect holding contracts)

A change in discretionary cash flows is treated as related to future service and therefore adjusts the contractual service margin.

Contractual service margin

At subsequent points in time, the following changes in cash flows derived from compliance are considered to be related to future services and are adjusted to the CSM: (i) experience adjustments related to premiums received in the period and any related cash flows that relate to future services; (ii) the change in the estimate of the current value of the expected future cash flows on the liability for the remaining coverage measured at the discount rates at initial recognition; (iii) changes in the non-financial risk adjustment relating to future services; (iv) differences between the amount of the investment components expected to be paid in the period and the actual amounts.

Recognition of the CSM in profits/(losses)

The CSM is released and recognised as income due to the transfer of services in the period and such release is made based on the allocation of coverage units. The determination of the units of coverage has been made taking into account the services provided in each period. The Group selects the appropriate portfolio-by-portfolio method.

The proposed CSM release pattern by product type is as follows:

Occident:

• • Non-renewable risk life and funeral: pattern based on the sum insured per death reached in each period.
• • Annuities: pattern based on the amount of annuity paid in the period plus the surrender value (if the policy has this right)
• • Other life savings:
• a) General Model (BBA): pattern based on the survival capital achieved in the period plus the additional amount guaranteed in case of death. In traditional insurance, the survival capital taken into account is the amount payable at maturity, including the accumulated profit participation. In the case of universal modalities, the survival capital to be considered will be the accumulated balance of the policy at any given moment.
• b) Variable fee approach (VFA): same pattern concept as for BBA.

Atradius:

• • Traditional credit insurance: based on the expected period in which customer invoices are settled. After this payment, the Group no longer has any insurance risk.
• • Surety business and special products: pro rata over the coverage period.

Main estimates and assumptions

The main estimates and assumptions used by the Group in the measurement of insurance contract liabilities measured under the BBA and VFA model are detailed below:

At Occident, for life and death business liabilities measured under the BBA and VFA models, biometric, persistency and expense assumptions are used which are derived from the company's experience studies for the current and previous years and which are common to those applied for the Solvency II best estimate.

For Atradius, the main assumptions used are the frequency and severity of claims, which are affected by credit risk in general and country and economic risk in particular.

3.i.5.2) Measurement model for contracts measured under PAA

The Group applies PAA mainly to: (i) those products whose coverage period is one year or less, as is mostly the case in the Occident non-life business and, exceptionally, to those whose measurement under PAA and BBA does not differ significantly and no significant variability in flows is expected; (ii) the products of the life business (among them, renewable funeral business) whose contract limits do not exceed one year.

On initial recognition, the Group measures the liability (asset) for the remaining coverage as the amount of premiums collected. It should be noted that in Occident non-life insurance, the accounting policy option of amortising acquisition expenses according to the coverage of the contract has been chosen, while in life business, acquisition expenses are recorded when they have been incurred.

Applying PAA, insurance income is measured by the allocated amount of expected premium receipts, excluding any investment component. The allocation is made on the basis of the passage of time unless the expected pattern of risk release differs significantly from the passage of time, in which case it is recognised at the expected time of claims and benefits incurred.

On subsequent recognition, the carrying amount of a group of contracts is the sum of the liability for the remaining cover and the liability for claims incurred. The liability for the remaining cover is the result of the opening balance plus premiums received for the period less the amount recognised as insurance income for services provided in that period.

For the incurred claims liability, the key assumptions are the same as those used in the BBA model and are detailed in note 3.i.5.1.

3.i.6) Reinsurance Contracts ceded or held

Reinsurance contracts ceded or held are measured separately from the underlying insurance contracts written, with no significant difference in pooling and measurement from that shown for direct insurance.

3.i.7) Transition

Transition refers to the process whereby the Group adopted the changes to IFRS 17 on 1 January 2022 (i.e. on the transition date, or in other words 1 January of the year prior to the effective date of the standard). This policy applies to the extent that there are units of account prior to 1 January 2022 that have not matured or are 'alive' at the balance sheet date and at the immediately preceding balance sheet date.

In the case of Occident, the fair value approach was applied to calculate the liability/asset for the remaining coverage of contracts valued under BBA and VFA for those insurance contracts issued before the transition date. For products measured under PAA and for the calculation of the liability/asset for claims incurred, the full retrospective method was applied from the date of last issue or renewal.

In the case of Atradius, the full retrospective method was applied for the annual cohorts from 2021 onwards and the modified retrospective method for earlier periods.

Level of aggregation in transition

The Group included insurance contracts prior to 1 January 2022 for Occident in groups of contracts issued in periods longer than one year, while for Atradius the split was into annual cohorts.

Measurement at the transition date

In the case of Occident for life insurance measured under BBA or VFA, when applying the fair value approach at the transition date, the CSM or loss component of the liability for the remaining hedge was estimated as the difference between the fair value, in accordance with the requirements of IFRS 13, and the cash flows arising from the fulfilment of the group of contracts as of that date.

In applying the amended retrospective method, Atradius estimated the future cash flows from the initial recognition of the groups of contracts as equal to the amount of future cash flows at the transition date and adjusted for cash flows occurring between the date of initial recognition and the transition date.

Transition discount rates

The Group applied the bottom-up approach to the non-life business (both Occident and Atradius) and to Occident's life business, except for the matching portfolio - OCI option for which the top-down approach is applied. The "Other Comprehensive Income" or "OCI" accounting option was used for the pre-1999 life business and matching portfolios, unless the P&L option was chosen.

The discount rates determined under the bottom-up method are based on applying a volume and duration weighted average locked-in rate for each product based on the risk-free benchmark assets of the German government bond (before the euro came into force) and the Euroswap curve (after the euro came into force), which incorporate the corresponding illiquidity premiums.

3.i.8) Presentation

The Group presents the carrying amounts of the portfolios of insurance contracts that are assets and those that are liabilities, and the portfolios of reinsurance contracts held that are assets and those that are liabilities, separately in the consolidated balance sheet.

The Group disaggregates the amounts recognised in the consolidated profit and loss account and other comprehensive income into a subtotal of insurance service result comprising insurance income and insurance service expense and, separately from insurance service result, "net insurance finance income or expense" (see Note 3.l).

3.j) Non-technical provisions

The Group's consolidated financial statements include all the material provisions with respect to which it is considered more likely than not that the related obligation will have to be settled. Contingent liabilities are not recognised in the consolidated financial statements.

Provisions, which are quantified on the basis of the best information available regarding the consequences of the event giving rise to them and are reviewed and adjusted at the end of each year, are used to cater for the specific risks for which they were originally recognised. Provisions are fully or partially reversed when such risks cease to exist or are reduced.

3.j.1) Provisions for pensions and similar obligations

Post-retirement benefits

The most representative Group companies with pension and similar obligations are Occident Seguros and Atradius N.V.

These companies have post-employment pension obligations classified as either definedcontribution plans or defined-benefit plans, which are covered by insurance policies and employment pension plans or trustee-administered funds. Other post-employment benefits, as well as long-term benefits, such as service awards, are covered by internal provisions.

For defined contribution plans, Group companies make pre-determined contributions to a separate entity or to a Group entity, with no legal or effective obligation to make additional contributions if the separate entity is unable to pay employee benefits related to services rendered in the current and prior periods.

In defined-benefit plans the amount of the benefits will depend on one or several factors, such as age, length of service and salary. The Group makes the necessary contributions to a separate entity (or the Group, as applicable). In contrast with the case of defined-contribution plans, however, it does have a legal or effective obligation to make further contributions if the separate entity is unable to pay benefits due to employees in relation to services rendered in the current or previous years.

In accordance with IAS 19 - Employee Benefits, the liability recognised in the Group's balance sheet for defined-benefit plans is the present value of the defined-benefit obligation at the balance sheet date less the fair value of the plan assets (if any) out of which the obligations are to be settled directly.

The plan assets covering the defined benefit obligations of Atradius N.V. are represented by instruments, vehicles or insurance companies that are not part of the Group.

The Group has opted to recognise actuarial gains and losses on all post-employment defined-benefit plans in full outside the income statement, under the heading "Actuarial gains/(losses) on long-term employee benefits" in the statement of recognised income and expense. "Actuarial gains and losses" are considered to be those which result from changes in the actuarial assumptions used for quantification of our obligations, the difference between assumptions and experience, as well as the income of assets over net interest.

The annual calculation of the obligations under the defined benefit plans is carried out by independent experts, using the so-called "projected calculation unit" method and using unbiased and mutually compatible assumptions. The discount rate used to determine the present value of the obligations is the interest rate of high quality corporate bonds that are denominated in the currency in which the benefits will be paid and that have terms to maturity that approximate the terms of the related pension liabilities. The estimated retirement age is the earliest age at which each employee is entitled to retire under current Social Security regulations.

The reversal of assets can occur when the plan assets are higher than the projected benefit obligation and the Group cannot recover any surplus through refunds from the pension's vehicle due to solvency or control requirements. These reversals are presented in the statement of recognised income and expense.

Contributions made to defined contribution pension plans are accounted as expenses on the profit and loss account of the year of occurrence in each company of the Group.

The cost of services in the current year, understanding the increase in actuarial value of bonds stemming from services rendered during the year by employees, are expensed in the profit and loss account in the year in which they are incurred in each of the Group companies.

3.j.2) Other non-technical provisions

Other non-technical provisions basically cover debts arising from payments the Group must make under agreements entered into with insurance companies and estimated amounts payable to meet potential or actual liabilities, such as restructuring, ongoing litigation, severance payments, outstanding staff settlements and other obligations.

3.k) Own shares

The negative balance of the "Equity – Treasury shares and participation units" account in the consolidated balance sheet relates to shares of the Group held exclusively by the subsidiary Sociedad Gestión Catalana Occidente, S.A.U. These shares are held at acquisition cost. The related adjustments and the profits and losses arising from disposal of treasury shares are credited or charged, as appropriate, to the equity heading "Other reserves for changes in accounting policies – Gains/(losses) on transactions in own shares".

A summary of the transactions carries out with the Group's own shares during the year is provided in Note 16.c) to the consolidated financial statements.

3.l) Income and expenses

The Group recognises income and expenses on an accrual basis, i.e. when the actual flow of the related goods and services occurs, regardless of when the resulting monetary or financial flow arises.

The main principles used by the Group to recognise income and expenses are summarised below:

3.l.1) Insurance service income

As the Group provides insurance services for a group of insurance contracts issued, it reduces its LRC and recognises insurance income, which is measured at the amount of consideration the Group expects to be entitled to in exchange for those services.

For groups of insurance contracts measured under BBA and VFA, insurance income consists of the sum of the changes in LRC due to: (i) insurance service expenses incurred in the period measured at amounts expected at the beginning of the period, excluding: amounts allocated to the loss component, investment component reimbursements, insurance acquisition expenses and amounts relating to the non-financial risk adjustment; (ii) the change in the non-financial risk adjustment, excluding changes that relate to future service that adjust the CSM and amounts allocated to the loss component; (iii) the amount of CSM for services provided in the period; (iv) other amounts such as experience adjustments for premium receipts that relate to a current or past service, if applicable.

In applying the PAA, the Group recognises insurance income for the period based on the passage of time by allocating expected premium receipts including premium experience adjustments to each service period. However, when the expected pattern of risk release during the period of coverage differs significantly from the passage of time, premium receipts are allocated based on the expected pattern of insurance service expenses incurred.

3.l.2) Insurance service charges

Insurance service charges arising from a group of insurance contracts issued comprise of: (i) changes in LIC related to claims and expenses incurred in the period excluding reimbursement of the investment component; (ii) changes in LIC related to claims and expenses incurred in prior periods (related to past service); (iii) other directly attributable insurance service expenses incurred in the period; (iv) amortisation of insurance acquisition cash flows; (v) the loss component of onerous groups of contracts initially recognised in the period; (vi) changes in LRC related to future service that do not adjust the CSM, because they are changes in the loss components of onerous groups of contracts.

The Group allocates to the insurance contract portfolios all expenses that are attributable, i.e. those that are directly related to the performance of those contracts. Other expenses, such as innovation, training, product development costs and generic brand advertising, among others, are considered non-attributable and are recorded, when incurred, under "Other expenses" in the income statement.

3.l.3) Income or expenses from reinsurance contracts held

The Group presents income or expenses of a group and financial income or expenses from reinsurance contracts held separately in the profit and loss account. Income or expense from reinsurance contracts held is split into:

• • Amounts recovered from reinsurers
• • An allocation of premiums paid

3.l.4) Financial income or expenses from insurance contracts

The measurement, in interaction between IFRS 9 and IFRS 17, through the possibility of applying the "other comprehensive income option" or the "income statement option", both for changes in the financial value of investments and liabilities, aims to eliminate any additional volatility in the income statement in a transparent, consistent manner, while maximising comparability.

The choice of the accounting option is made at the level of the portfolio of insurance contracts. In this respect, the "other comprehensive income option" is chosen for the Occident and Atradius insurance contract portfolios, with the exception of those whose assigned assets have not passed the SPPI test (see Note 3.b.1) and, therefore, in order to avoid asymmetries between assets and liabilities in their valuation, the "income statement option" is used.

For indirect holding contracts, the amount presented in profit or loss is based on a systematic allocation of the total expected total insurance financial income or expense over the life of the group's contracts. For the duration of the contracts in the group, the total amount recognised in OCI will be zero.

3.l.5) Income from information services and other technical income

This income comes mainly from Atradius N.V. and includes fees for information services, collections and short-term credit management services and income from activities carried out as an agent of the Dutch state. This income is recognised when the service is provided, in line with IFRS 15.

3.l.6) Income from funeral services and other non-technical income

Income from Other activities mainly includes income from Mémora's services. This income is recognised in accordance with IFRS 15 at the fair value of the consideration received or receivable arising from the consideration, with income being recognised when, or as, the entity meets its performance obligation to its customers.

In addition, this section includes the income from management commissions for investment funds and pension funds.

3.l.7) Interest income and expense and similar items

In general, these items are recognised using the effective interest method, irrespective of the monetary or financial flow deriving from the financial assets. Dividends are recognised as income as the consolidated companies' right to receive them arises.

3.m) Business combinations

Business combinations are accounted for by applying the acquisition method which determines the date of acquisition and calculates the cost of the combination, registering the identifiable assets acquired and the liabilities assumed at their fair value referring to said date. In the case of liabilities from insurance contracts, these are registered in accordance with IRFS 17.

The cost of the combination is determined by aggregation of the price paid plus the amount of all minority interests plus the fair value of the prior shares from the business acquired, where applicable.

The goodwill represents the excess cost, including deferred payments, whether true or contingent, over the net amount on the date of acquisition of the identifiable assets acquired and the liabilities assumed.

In the exceptional case of there being a negative difference in the combination, this is attributed to the profit and loss account as income.

If on the close date of the year when the combination occurs the valuation processes necessary to apply the method of acquisition described above cannot be concluded, this accounting will be considered provision, and said provisional values can be adjusted in the period necessary in order to obtain the information required which under no circumstances will be more than one year. The effects of the adjustments made in this period are accounted for retrospectively, modifying the comparative information if necessary.

The later changes to the fair value of the contingent payment are adjusted in comparison to the results, except where said payment has been classified as equity, in which case the later changes to the fair value are not recognised.

4. Risk and capital management

Grupo Catalana Occidente understands that solvency is ensure by gaining a strong capital position by achieving long-term results and a responsible and sustainable shareholder remuneration policy.

All Group entities must maintain the necessary financial strength to develop the business strategy, taking prudently risks and meeting the required solvency needs.

Risk management is one of the basic aspects of the insurance business.

4.a) Capital management

Grupo Catalana Occidente seeks to maintain a strong capital position.

Capital management is governed by the following principles:

• • Ensure that Group companies have sufficient capitalisation to meet their financial obligations, even as they face of extraordinary events.
• • Manage the adaptation of capital of the Group and its entities in consideration of the economic and accounting perspective and the capital requirements and objectives established in the risk appetite.
• • Optimise the capital structure through efficient allocation of resources between entities, ensuring financial flexibility and properly remunerating shareholders.

Grupo Catalana Occidente defines the strategic plan and the risk strategy considering the capital management policy, using the solvency projections made in the internal measurement process of risks and solvency (ORSA). Capital quantification is carried out at the Group level and at the level of each of the insurance and reinsurance entities, using different models for monitoring: ORSA, rating agencies, economic and regulatory models.

Since 1 January 2016 the Group's capital has been quantified on the basis of the standard formula set out in the Solvency II regulations, except in the credit and surety business for which, in order to take account of the specific features of the business, a model has been developed for calculating its underwriting risks, approved by the Board of Supervisors in July 2017. Thus, the Group's solvency ratio and that of each of its entities is the result of comparing the equity of the entity at market value (economic capital) to the mandatory solvency capital requirement (SCR). The mandatory solvency capital requirement includes all of the risks to which the entity is exposed, particularly the following: market risk, underwriting risk, counterparty default risk and operational risk.

In July 2024, Moody's affirmed the rating to "A1" with a stable outlook of the operating credit insurance entities under the Atradius brand. The confirmation of this rating reflects Moody's confidence in the strength of the Atradius brand and its ability to effectively manage the volatility inherent in credit insurance, including in the face of significant challenges such as those posed by the COVID-19 pandemic and the Ukraine-Russia conflict. This is due to the high quality of its risk exposure, its strong economic capitalisation and its solid positioning as the world's second largest credit insurer.

In turn, A.M. Best confirmed in July 2024 the financial strength rating of "A" (excellent) with a stable outlook for the Group's main operating entities, both Occident and Atradius. This rating reflects the solid balance sheet strength, excellent operating profits and appropriate capitalisation of the Group's main operating entities. In addition, it considers that exposure to natural disasters is limited, thanks to the existence of a national coverage system (Insurance Compensation Consortium).

GCO and all of its individual entities aim at maintaining a solvency ratio that allows them to favour growth and to undertake prudent and stable remuneration of shareholders.

GCO and its subsidiaries with insurance activity and domiciled in Spain are supervised by the DGSFP. The subsidiaries with insurance activity and domiciled outside Spain are: Atradius Seguros de Crédito, S.A. in Mexico, regulated by the Comisión Nacional de Seguros y Finanzas (CNSF); Atradius Trade Credit Insurance, Inc. in the United States, regulated by the Maryland Insurance Administration (MIA); and Atradius Crédito y Caución Seguradora S.A. in Brazil, regulated by the Superintendência de Seguros Privados (SUSEP). The regulators mentioned above are responsible for regulating the calculation of the solvency margin in their respective countries.

The Group has a robust and solvent asset position and does not foresee a materially significant impact even in the face of economic slowdowns stemming from geopolitical instability, marked by tensions between major powers, regional conflicts such as the war in Ukraine and the Middle East, and the upward trend in stock markets.

4.b) Risk management

The Group's risk management system works holistically, consolidating this management by business, activity, subsidiary and support area at the corporate level.

The principal elements that form part of the Risk Management System are:

• i. Risk Governance: Organisational structure of the Risk Management System. Risk Governance is regulated by policies, other regulations and a clear attribution of roles and responsibilities.
• ii. Risk Management Process: Establishes the process that the Group and its entities use to identify, accept, evaluate, monitor, mitigate and inform the risks. Furthermore, the process defines the Risk Strategy and insures that its integration with the Business Strategy permits compliance with the risk appetite and tolerance defined by the Board of Directors.

iii. Business Strategy: The Business Strategy is defined in the Strategic Plan. As mentioned in section ii above, the Business Strategy is in line with the Risk Strategy. The process of selfassessment of risks and solvency (ORSA) contributes towards guaranteeing this alignment.

These elements promote a common risk culture within the Group and ensure efficiency of the Risk Management System.

The Governance of the Risk management system is based on the principle of the "Three Lines of Defence". The principle of the three lines of defence establishes the levels of activity, roles and responsibilities that govern the Risk management system in such a manner that the first line of defence consists of the business units which are responsible for the risk and which assume the management of the same. The second line of defence consists of the actuarial function, the risk management control function and the compliance verification function. The third line of defence is the internal audit function.

On the other hand, the Board of Directors is responsible for guaranteeing efficiency of the Risk Management System through compliance with the general strategies of the Group and the Management Committee is responsible for ensuring correct implementation, maintenance and monitoring of the Risk Management System in conformance with the guidelines defined by the Board of Directors.

In order to complete the Governance of the Risk Management system, the Group and its entities have developed written policies that, together with the existing Technical Standards, guarantee ideal administration of the risks. These policies, in their content, identify the own risks of each affected area, establishes risk quantification measures, determines actions to supervise and control said risks, establishes measures to mitigate the impact of the same and determines the information and internal control systems that are used to control and manage the risks.

Through the risk management process, the Group and its entities identify, measure, control, manage and inform of the risks that are present or may be present. Specifically, the Group and its entities identify and determine, among others: (i) the different types of risks facing the group, (ii) the level of risk deemed acceptable, (iii) the mechanisms to mitigate the impact of the risks identified, should they materialise, and (iv) the information and internal control systems used to mitigate these risks, including contingent liabilities and off balance sheet risks. This system of risk management of the group also aims to develop processes and systems of capital allocation in light of the risks assumed by each area.

Based on this process, the Group defines its risk strategy by establishing the level of risk it is willing to take to achieve the targets set in its strategic plan and annual guidelines, according to the three pillars: Growth, Profitability and Solvency. Moreover, it stipulates risk limits controlled by the management units with the aim of appetite and tolerance levels being adhered to, thus ensuring that both are aligned with day-to-day business.

In the framework of risk management, the Group undertakes the internal assessment of future risks (ORSA; Own Risk and Solvency Assessment) according to the criteria defined in its ORSA Policy. The ORSA process is carried out both for the Consolidated Group and for the different entities of Occident and Atradius. Within this process, the useful stress scenarios are also defined for decision making.

The Governing Bodies (Steering Committee and Board of Directors) play an active role in the prospective internal assessment of own risks, managing the process and checking results. The Board of Directors of each insurance entity, as ultimately responsible for risk management, approves the ORSA report specifying the capital consumption projection and capital available for the plan's medium-term time horizon for each entity, approving the ORSA report for the Group by the Board of Directors of the Company.

The main risks that may affect the achievement of the Group's objectives are as follows:

• Occident technical risks
• Atradius technical risks
• Financial market risks
• Operational risks
• Geopolitical environment risks
• Environmental, social and governance risks
• Other non-operational risks such as reputational risk, strategic risk and Mémora risks

Given the current environment of geopolitical tensions, the Group is closely monitoring developments and taking appropriate action as required. Through Atradius N.V., ongoing discussions are held with our customers to assess current exposure and identify areas of focus. In addition, communications are maintained with intermediaries, reinsurers and regulatory agencies, among others. No significant impact is expected on the Group's continuity, nor a relevant impact on income.

The adverse scenario calculated in the ORSA framework is sufficiently severe and includes all the different components that could be affected due to geopolitical tensions: claims ratio, reduction of TPE due to mitigating measures and financial market volatility. The solvency ratio after these adverse conditions would also be above the Group's risk appetite.

The Group takes into account the current economic environment, in which inflation is fairly stable, and monitors the risks associated with it. On the other hand, despite the trend of lower interest rates by central banks, we are still in an environment of relatively high rates, which has a positive impact on spreads and makes savings products more attractive.

A. Occident technical risks

With regard to non-life insurance, underwriting risk is divided into underwriting risks of insufficient premiums and provisions in insurance contracts, portfolio decline and catastrophe risk. These risks are managed differently depending on the business line.

With regards to the life insurance, biometric risks are contemplated (including the risks of mortality, longevity, morbidity/disability) as well as non-biometric (falling portfolio, expenses and catastrophes).

The technical underwriting standards consider the specificities of each business and establish:

• The limits for underwriting, through delegation of powers to the customers based on their specific knowledge.
• The specific approvals for operations that exceed the established limits.
• Monitoring of the business.
• The assignment of risk through reinsurance contracts.

The Group measures underwriting risk using the standard formula, except for Atradius where the Group uses its partial internal model.

Measures taken to monitor and control these risks include:

• On-going development of Technical Standards, establishing automatic and preventive mechanisms to ensure that policy underwriting meets the standards.
• Analysis of products for the purpose of determining the contractual service margin or onerousness of insurance contracts.
• Business diversification in both general and life insurance.
• Quantification of European Embedded Value in the Life business line.
• Implementation of Appraisal Value methodology in Non-Life.
• Use of reinsurance to cover deviations from the expected claims rate, allowing the Group to retain as much business as possible, in so far as its scale of operations and solvency allow. For outward reinsurance, the Group uses only market-leading reinsurers, with ratings that

guarantee the necessary solvency, financial and management capacity, and business and service continuity.

• Monitoring of an appropriate policy for analysing the performance (results) of policies, taking the necessary measures to avoid a high frequency and average cost of claims.
• Traceability mechanisms in Internal Control.

Furthermore, the Group carries out continuous monitoring of the level of risk concentration. Occident has a very diversified product range. The distribution by business of the portfolio based on imputed direct insurance and accepted reinsurance premiums as at 31 December 2024 is as follows: Life 26.7%; Motor 22.9%; Multi-risk 27.1% and Others 23.3% (see Note 18).

The reinsurance business holds excess of loss, surplus and quota share reinsurance contracts.

The panel of reinsurers is:

• Solvent, in terms of credit rating: all reinsurers external to Occident have an A rating or higher on the S&P scale. In non-life insurance, 54% of assets/liabilities under reinsurance contracts are go back to reinsurers with a rating of AA- or higher. In life insurance, this percentage is 61.3%.
• Diversified, in the holdings assigned to reinsurers. In non-life insurance, the panel of external reinsurers consists of 12 reinsurers, with the top 5 companies in the panel accounting for 79.6% of premiums. In non-life insurance, the panel consists of 7 reinsurers, with the top 5 companies accounting for 82.7%.
• Stable, there is stability in the panel of reinsurers, thus comply with the principle of continuity for the business. There are no significant changes in the shares assigned to the reinsurers, nor in the inputs and outputs to the reinsurers panel.

Finally, when completing the risk management, the Group identifies the sources of uncertainty and undertakes the sensitivity analysis for the risks it is exposed to:

• The status of the economy is an important factor in the frequency and severity (average cost) of the claims, at the same time, all sections of the Group can be affected in provisions as a consequence of the legislative changes.
• In life insurance, the main sources of uncertainty are the evolution of interest rates, expenses, the behaviour of the policyholders and insured parties and the evolution of mortality and survival.
• In Occident non-life insurance, the principal sources of uncertainty are: the frequency of claims and their quantity, the number and size of serious claims and the estimate of recoverable percentages.

In addition, to assess the level of uncertainty of insurance contract assets and liabilities:

• In the case of non-life insurance: a stochastic analysis of the chain-ladder method is carried out in order to obtain a prediction of the distribution of future payouts based on the company's experience. Specifically, a generalised overdispersed Poisson linear model is assumed where the prediction errors are estimated using the Bootstrap technique.
• In the case of life insurance: a stochastic analysis of the time value of options and financial guarantees is carried out, which results from using two thousand random scenarios of the time structure of risk-free interest rates including adjustment for volatility and consistent with asset prices in the financial markets.
• With regard to the main sensitivities carried out by the Group in Occident, the analysis in 2024 of the key assumptions that may result in material impacts on results and equity is presented below (in millions of euros):

Occident	Change in the assumption (%)	Impact on Profit before tax (millions of euros)	Impact on shareholders' equity (millions of euros)
Life Risk (including Funeral business)
Mortality	+1%	(0.1)	(0.1)
Drop (Cancellations)	+10%	0.1	(0.2)
Life Savings
Survival	+10%	(1.3)	(3.5)
Drop (Cancellations)	+10%	(0.4)	(9.8)
Direct Holding Contracts
Survival	+10%	-	-
Drop (Cancellations)	+10%	(0.5)	(0.5)
Motor
Claims	+10%	(74.8)	(56.1)
Multi-risk
Claims	+10%	(78.2)	(58.7)
Various others
Claims	+10%	(34.8)	(26.1)

• • Survival/mortality risk: the risk of loss or deviation in the measurement of life insurance contract liabilities arising from the movement/volatility of mortality rates, resulting in an increase or decrease in the value of such obligations.
• • Fall/claim risk: the risk of loss or deviation from expected profits or losses, due to policy renewals, surrenders or cancellations, resulting in variations from the fall and loss assumptions initially applied in the measurement of such insurance liabilities.

The current economic situation, affected by geopolitical tensions, has not significantly impacted Occident's risks. In view of the above, no additional sensitivity scenarios have been performed in Occident as the results for the year have remained at the usual levels and no significant negative impacts are expected.

B. Atradius technical risks

The Group offers two main types of direct insurance products: credit insurance and surety insurance. Credit insurance falls into three main categories: traditional credit insurance, instalment protection and special products. Each of these categories has the characteristics of specific risks. In turn, surety insurance is presented in a single category.

▪ Traditional credit insurance

The Group insures its customers against the risk of non-payment for credit sales, services rendered or installations executed. The causes of loss covered differ depending on the policy and usually include all forms of legal insolvency. Without intending to give an exhaustive list, policies can also cover so-called political causes of loss, which among others include the risk of non-payment due to cancellation of import-export licences, transfer problems and contract cancellation.

Each policy has defined credit limits that the policyholder can offer to its buyers without prior approval from the Group. Policies are issued for a fixed period, usually not longer than three years. In addition, customers are obliged to retain part of the risk (self-retention), using different formulas.

Policyholders under such policies receive cover from their customers only when the Group has set a credit limit (rating) for that customer. The rating establishes the maximum credit limit covered by the insurance for the customer, and consequently the maximum insured credit limit, and is a risk control and mitigation tool as it allows limiting the exposure per customer. A downgrading can also occur in cases where the desired aggregate exposure thresholds are exceeded for a given customer.

In this type of policy there are two underwriting processes: policy underwriting and risk underwriting. Policy underwriting is the process by which the Group decides which companies it accepts as policyholders and the terms and conditions of cover offered. Risk underwriting is the process whereby the Group sets risk limits for each buyer and establishes credit limits, thereby managing the risks of existing policies.

Credit limits are the key risk management tool for the Group, as they limit the amount that would have to be paid to a customer in the event of a claim. In addition, the Group can in principle withdraw a buyer's credit limit at any time if circumstances so require. Credit limits may be subject to specific conditions and the Group may also set conditions for country coverage or withdraw coverage for an entire country. These are important tools for managing risk exposure.

▪ Instalment payment protection

Instalment payment protection covers the medium and long-term risks that financial and corporate policyholders face in their multiple instalment payment agreements with companies and private individuals, and is available in Belgium and Luxembourg.

Here the Group typically insures portfolio loans. This product does not cover losses as a result of fraud by the customer.

▪ Special products

The Group also offers a range of customised policies insuring a variety of credit and political risks. This type of product includes policies covering individual transactions, individual business relationships and forfeiture of assets. A distinctive feature of special product policies is that, unlike traditional credit insurance, credit limits cannot normally be easily withdrawn. Special product policy conditions require increased supervision and due diligence on the insured.

▪ Surety

Surety insurance is marketed in Italy, France, Spain, Portugal, Germany, the Nordic countries and the Benelux countries. Surety insurance insures the beneficiaries against the risk of our customer's failure to meet contractual, legal or tax obligations. Beneficiaries include national, regional and local governments, tax authorities and businesses. The bond types issued vary by location, owing to differing legal environments, but typically include bid bonds, performance bonds and maintenance bonds. The Group manages risk by underwriting the obligations to be covered by the bond, the financial strength of customers and their ability to perform, and also by working with customers and beneficiaries of bonds to resolve any conflicts.

In addition, Atradius Crédito y Caución, S.A. de Seguros y Reaseguros (hereinafter "Atradius CyC") is the Group's reinsurer for credit insurance products. It has a diversified portfolio in about 70 countries. Most programmes are entered into quota-share.

Specific controls at Atradius

Fully defined risk authorisation systems and processes are in place. Sales staff has limited authority. As the credit limit increases, decisions need authorisation from one or more co-signatories of increasing seniority. Even senior levels have authority only up to certain thresholds.

There are credit committees at local level and at Atradius N.V. level. The local credit committees can authorise amounts up to certain limits, beyond which only the Atradius credit committee can decide. The Group Credit Committee also authorises exposures to large customers and customers with the largest overall exposure.

The Group monitors exposures by counterparty, sector and country through a single database (Symphony) that contains details of the majority of credit insurance policies and credit limits and all customers with whom the Group has exposure to default risk. This database is used as a source of management information. Due to the process of including the Spanish business through Atradius CyC in Atradius N.V., the database, although independent, is accessible to this global database.

The majority of policies, both new production and renewals, are priced according to a structured system based on risk, cost and perspective that the Group assigns primarily at the country, sector and buyer rating level.

Exposure from the instalment credit protection business is monitored separately, as the risk is assumed by consumers not companies. Premiums for these policies are calculated on the basis of the probability of default, expected losses, volume and maturity of loans.

All customers with whom the Group has significant exposure are reviewed annually, although on a continuous basis information concerning defaults, both from companies and from individuals, is received.

The Group is exposed to the concentration risk by purchaser and by country and sector of the purchaser. Concentration risk is controlled and monitored through what is known as Total Potential Exposure (TPE). The TPE, being the sum of the credit limits entered into by the Group with buyers, represents an absolute measure of exposure; however, in aggregate, the actual exposure will be considerably lower. On a portfolio level, the real exposure tends to be in the range of 10% to 30% of the TPE, without taking into account that the customers also have their own withholdings.

Following there is a detail of TPE by country, sector and buyer group:

		TPE 2024	TPE 2023
		Millions of	Millions of
Buyer's country	Of which	euros	euros
Denmark, Finland, Norway,	The Netherlands	42,016	41,116
Netherlands, Sweden, Baltic Countries	Others	44,502	41,773
Austria, Czech Republic, Germany,	Germany	131,053	129,890
Greece, Hungary, Poland, Slovakia,	Others	100,178	93,574
Switzerland and Others
UK, North America, Australia, Asia	United Kingdom	68,795	64,223
and Others	Ireland	7,582	6,685
	USA and Canada	102,604	93,244
	Mexico and Central	20,482	18,966
	America
	Brazil	14,927	14,625
	Asia and Australia	145,423	127,401
	Others	16,678	14,911
Southern Europe	France	61,179	60,226
	Italy	65,030	62,570
	Spain and Portugal	102,578	101,442
	Belgium and Luxembourg	24,214	22,631
Total		947,241	893,277

	TPE 2024	TPE 2023
	Millions	Millions
Industrial sector	of euros	of euros
Durable consumer goods	97,346	91,213
Metals	100,928	99,523
Electronics	116,536	107,461
Construction	70,139	66,469
Chemicals	137,187	126,643
Transport	90,466	81,113
Machinery	59,388	57,551
Food	92,672	84,098
Construction Materials	44,295	41,276
Services	36,264	31,928
Textiles	22,433	21,054
Finance	23,778	21,791
Agriculture	36,771	43,483
Paper	19,038	19,674
Total	947,241	893,277

Grouping by number of buyers	TPE 2024 Millions of euros	TPE 2023 Millions of euros
0 – 20	443,516	427,053
20 – 100	168,264	156,707
100 – 250	109,199	103,669
250 – 500	80,676	77,604
500 – 1,000	77,105	67,699
Over 1,000	68,481	60,545
Total	947,241	893,277

Surety and instalment protection exposures have different characteristics and are therefore not included in the tables above. The surety exposure as at 31 December 2024 is Ū32,900 million and the term payment protection exposure amounts to Ū4,100 million.

In addition to the contributions from the standard components of the credit insurance contract liability methodology, an Event Based Provision (EBP) has been estimated specifically for the impact of the Russia-Ukraine conflict. This liability was set aside to cover those risks which are not considered to be fully covered by the standard methodology. As a result of the analysis performed, a gross reinsurance provision of Ū105.4 million (Ū81.2 million net of reinsurance) is maintained for claims already incurred (Ū122 million gross and Ū92.3 million net of reinsurance in 2023).

With regard to the main sensitivities carried out by the Group in Atradius, the analysis in 2024 of the key assumptions that may result in material impacts on results and equity is presented below (in millions of euros):

Atradius	Change in the assumption (%)	Impact on Profit before tax (millions of euros)	Impact on shareholders' equity (millions of euros)
Credit
Claims	+10%	(110.0)	(105.0)
Discount rate	-0.5%	-	(4.0)

C. Financial market risks

The Group's investment policy approved by the Board of Directors takes into account the ratio of assets to liabilities, risk tolerance and liquidity of positions in different scenarios. It also expressly considers the prerequisites for the use of derivative instruments and structured financial products.

At present, the Group differentiates between four types of portfolios: life portfolios, non-life portfolios, credit insurance portfolios and portfolios in which the risk is borne by the customer.

The aim in the case of life portfolios is to optimise asset and liability matching using asset liability management (ALM) frameworks, while verifying compliance with legal and internal requirements. The aim in the case of Non-life portfolios is to maximise long-term return through appropriate diversification of assets. In the insurance credit portfolios, the aim is to maintain the solvency and liquidity required by the business. Lastly, the portfolios in which the risk is borne by the customer (whether in insurance contracts or in any other type of financial product) are managed in accordance with the policies established in each case in the statement of terms and conditions or prospectus.

• Credit risk. The credit risk is the risk that the issuer or other party in a financial operation does not comply with their contractual obligations. The Group's policy on credit risk is based on two basic principles:
  • Prudence: the minimum rating for fixed-income investments is A-. Any investment below this threshold requires express senior management approval and must be reported to the Board of Directors. If Spain's sovereign rating were to drop below A-, investment in government bonds issued or guaranteed by the State shall not require

authorisation as long as the investment level is maintained. In this sense, in the selection or credit risks, priority is given to those with the highest credit rating.

• Diversification: high diversification across industries and issuers, with maximum risk limits per issuer.
• Liquidity risk The Group's policy with respect to liquidity risk is to maintain sufficient cash balances to meet any contingencies arising from obligations to customers. Said liquidity risk is managed by adapting the investments to the characteristics of the liabilities in the various businesses where the Group operates. In this sense, there is a periodic ALM analysis for all portfolios that permit mitigation of this risk. On the other hand, almost all the investments are in securities traded in organised markets that permit flexibility, so the Group will be able to take measures if there is any liquidity pressure.

The maturity analysis of insurance and reinsurance contract assets and liabilities is shown below:

	Carrying amount	Discounted cash flows (Thousands of euros) (*)
31 December 2024		Less than 1 year	Between 1 and 5 years	More than 5 years
Insurance contract liabilities (net of assets)	8,586,541	3,170,430	2,595,880	2,987,997
Reinsurance contract assets (net of liabilities)	601,822	434,273	177,200	34,732

(*) Cash flows for Atradius do not include the discount effect.

	Carrying		Discounted cash flows (Thousands of euros) (*)
31 December 2023	amount	Less than 1 year	Between 1 and 5 years	More than 5 years
Insurance contract liabilities (net of assets)	8,725,081	3,153,130	2,781,072	2,967,544
Reinsurance contract assets (net of liabilities)	596,841	433,446	164,402	27,565

(*) Cash flows for Atradius do not include the discount effect.

The maturity analysis of financial assets is shown in Note 7.

• Exchange rate risks. The Group has the objective of minimising the risks derived from the exchange rate. Thus, in the portfolios of companies with traditional insurance business, basically located in Spain, it only maintains positions in currencies other than the euro derived from its investment in international variable income, with the exposure considered to be reduced. On the other hand, in the specific case of Atradius, in cases where the local legislation in each country of operation requires, investment is maintained in the corresponding currency. In these cases, the objective is for there to be natural coverage between the positions and the local business.
• Market risk. Market risk is the risk of loss in the fair value of the assets as a consequence of the movements in the market variables that incide in the valuation of the same. The Group regularly analyses the sensitivity of its portfolios to market risk, due mainly to changes in interest rates and stock prices. In this sense, there is a monthly control of the modified durations of the fixed income portfolios and, with a period nature, there is a study of the assetliability suitability on a product level of analyse and verify the structural correspondence between the same, as well as different stress scenarios.

One of the standard measurements for market risk is the Value at Risk (VaR), which is based on a methodology of variance-covariance that uses the historic volatility of the prices in stock indexes, the exchange rates and the rate curves, and the correlation between them, as principal inputs. This risk measurement measures the maximum potential loss of the financial instruments due to adverse movements in the prices of the shares, the exchange rates and the interest rates within a fixed period of time and with a specific level of reliability (probability). Although the Group does not manage its investments based on the VaR level of the same, it uses this indicator as additional reference information together with the other periodic risk controls that it carries out on the investment portfolios. The risk of using the variance-covariance methodology or any other methodology based on historic data is that it underestimates the risk of the financial instruments. This is because these methods assume that the historic volatility and the correlation between the financial instruments will be repeated in the future. Therefore, the aim is not to represent future prices, but to use this as a guide only for information and comparison purposes for historic behaviour. In the specific case of the calculation carried out by the Group, there is a level of reliability of 99.5% and a period of 12 months, which implies that there is a probability of 0.5% of underestimating the maximum potential loss for the next 12 months.

Variable income performed well in 2024, especially the technology sector. As for fixed income, although we continue in an environment of high interest rates, given the messages from central banks, these are expected to gradually decrease over the coming months, although possibly at different rates in different regions. On the other hand, we remain in an environment of geopolitical tensions that could cause some instability and could translate into market movements. We are in a period of high volatility in fixed income, strongly influenced by macroeconomic data in the US.

The Group has monitored its exposure to the various risks, specifically:

• • The evolution of the positions held in liquidity has been monitored, although the levels of cash held minimise any impact in this regard.
• • Credit exposure to the different sectors that are particularly affected by the current economic and price situation has been controlled. Additionally, the portfolio diversification controls in place would mitigate any risk in this regard.
• • The sectoral diversification of these investments has been analysed in detail regarding variable income investments, as in the case of fixed income investments.

With regards to the main sensitivities performed by the Group for the financial market risks, we can highlight:

• Fixed Income: An increase in the curve of 100bps represents -1.8% solvency ratio whereas a decrease in the curve of 100 bps represents +0.3% in solvency ratio.
• Variable Income: An decrease in the variable income of the stock market of -10% represents +10.1% solvency ratio whereas a decrease in the variable income of -25% represents +11.7% in solvency ratio.
• Properties: A decrease in value of 5% of the property value implies -1.4% of the solvency ratio.
• A combined decrease of 10% in the variable income value and of 5% in the properties implies an increase of +8.6% of the Group's solvency ratio.

D. Operational risks

Defines operational risk is understood as the risk of loss of inadequate or poorly functioning internal processes, staff or systems, or as a result of external events. In order to deal with operational risk, the Group has IT Tools in Occident and Atradius that enable them to be monitored and quantified. In particular, the risks associated to the various processes have been categorized with the aim of standardizing this classification across all Group companies, which allows obtaining the necessary information that enhances operational risk management, in each Group company individually and in the Group as a whole.

This system allows fair undertaking of an appropriate operational risk management.

The Group likewise ensures compliance with the various regulations applicable to entities comprising the Group through audits carried out by various Departments. Amongst which we should highlight:

• • Corporate Legal Department: Its aims include maintaining, through the Compliance Verification Department, adequate compliance with legal and internal regulations within the organisation of the Group's different entities, as well as ensuring that these are applied in a consistent manner. To this end, it has a Compliance Verification Committee, whose task is to coordinate, supervise and establish common criteria in the Group's main entities. In addition, for those regulations that are particularly sensitive in relation to the sector in which the Group operates, such as those aimed at the prevention of money laundering and the financing of terrorism and the protection of personal data, internal committees have been set up to ensure compliance with these regulations.
• • Management and Planning Control Department: The unit, belonging to the Company's Financial Management, among other goals, aims to arrange and implement adequate control of the Group's financial information and its budgets, and to ensure that it complies with domestic and international accounting standards.
• • Corporate Internal Audit Department: This Department, under the Audit Committee, is responsible for seeing that the above bodies have successfully implemented the control and self-control measures stipulated by the Group, with regard to both operational and regulatory compliance risk.

E. Other non-operational risks such as reputational risk and strategic risk.

Reputational risk: Risk associated to the occurrence of an event that has a negative impact on the image or notoriety of the Group and, in consequence on it's reputation. This risk is materialised by unfavourable information in the public media, on the internet/networks or complaints in the context of a claim against the company.

Its causes can range from poor management of a claim, inappropriate behaviour of employees or collaborators, perception of inadequate strategic decisions by the Group or the company, poor advice in the sale of products, fraud on the part of the mediator, etc.

In order to manage this risk the Group:

• Has a reputational risk management protocol whose purpose is to establish a protocol for action, as well as to establish operations and valid interlocutors for those events and/or situations that may cause a reputational crisis affecting the external image of the Group or of any of the individual entities that comprise it.
• Has a code of ethics signed by the board members, associates and service providers.
• There is a protocol for action in the event of irregularities and fraud (whistle-blowing channel) of the Group.
• Determines the requirements of aptitude and honour.
• Monitors the information published in communication media.

Strategic risk: Risk of loss of earnings or capital resulting from inadequate strategic decisions, poor execution of decisions or failure to adapt to changes in the economic, technological or social environment.

Compliance with the Group's goals is monitored by the steering committee and by each of the areas, in such a manner that there is exhaustive monitoring of the plan in the medium-term and of the circumstances that may occur therein.

Mémora risks: These risks involve the possible loss of profits or capital of the Mémora Group's business arising from inefficient operational management, failure to adapt to trends and developments in the political, economic and competitive environment, and reputational impact affecting the entity or the funeral sector in general.

F. Environmental, social and governance risks

Sustainability risks are defined as those risks that constitute the possibility of losses driven by environmental, social and governance ("ESG") factors.

• With respect to investments, any environmental, social or governance event or condition that, if it were to occur, could have an actual or potential material adverse effect on the value of the investment.
• With respect to liabilities, an environmental, social or governance event or condition that, should it occur, may cause an actual or potential material adverse impact on the value of the liability.

Environmental risks are those arising from issues related to the quality and functioning of the natural environment and natural systems. These risks are classified into three main categories: physical risks, transitional risks and liability risks: These risks are classified according to whether they are physical risks, transitional risks or liability risks:

• Physical risks include an increase in extreme weather events, such as hailstorms, fires or torrential rains, which can have significant financial consequences for organisations. These include an increase in claims, higher mortality rates, as well as an increase in the risk of nonpayment by reinsurers.
• Transition risks include factors such as the failure of company investments and real estate to meet legal zero-energy standards, the inability to respond to changes in customer preferences due to the absence of more sustainable products, portfolio losses linked to high exposure to polluting sectors, and increased credit spreads in sectors with high sensitivity to climate transition.
• Finally, liability risks include potential reputational damage from unsustainable practices, insufficient responses to climate change, or accusations of greenwashing. In addition, slow adaptation to new regulatory standards may aggravate the financial and operational consequences for the organisation.

In this context, the increase in extreme weather events, such as the recent hail events and especially the DANA, highlights the growing importance of risks associated with climate change. Although the Group was not significantly impacted by the latest DANA, given that a significant part of the damage will be covered by the Consortium, it took a proactive role in processing and assessing claims, with the aim of responding quickly and effectively to the most urgent needs of its policyholders.

Social risks are those that encompass issues relating to the rights, welfare and interests of individuals and communities. These issues include: impact of demographic and social changes (health, longevity, birth rate, etc.) on our customers, policyholders, employees and partners, disconnection between the organisation's initiatives/projects and the real needs of society, internal working conditions such as health, safety and well-being, talent management, and non-compliance with diversity, equality and inclusion commitments, among others.

Governance risks refer to issues related to the governance of companies and other investees, as well as issues related to the relationship between the company's management, its Board of Directors, its shareholders and its stakeholders, as well as issues of business strategy. These include: risk of loss of customers due to not having sustainable products or services; cyber risks and/or not having our IT systems adapted to new labour and market trends: teleworking, IT security, digitalisation, online customer service; reputational risk associated with not meeting stakeholder expectations of a responsible and diverse governing body; Ethics and Integrity risk related to the code of ethics, compliance, fraud and corruption; and risk arising from poor protection of personal data, among others.

Bearing in mind that these risks may affect the Group as a whole directly or indirectly and that, therefore, they must be integrated transversally in GCO's risk policies, a Sustainability Committee is in place at Grupo Catalana Occidente, S.A. level with the aim of:

▪ Implementing GCO's Sustainability Master Plan, which sets out the Group's priorities for action every three years in order to develop and implement the sustainability strategy.

• Incorporating ESG risks into GCO's Risk Management System through the Group's governance policies and other sustainability policies (such as the climate change and environment policy, the human rights policy and the diversity and equality policy, among others), which serve as an umbrella for the various action plans in this area.
• Defining the criteria for the content, methodology and presentation of the information to be disclosed with respect to ESG factors.

The following processes are established for the management, measurement and monitoring of ESG risks:

• The impacts of such risks, to the extent relevant, are analysed in financial planning with the aim of adapting, if necessary, strategic planning in the light of the risks identified.
• The necessary metrics are implemented to help measure and manage the risks and opportunities arising from climate change.
• A periodic report is made at the highest level on the identification of these risks and opportunities, as well as their impact on the business and financial planning. A periodic report is made at the highest level on the quantification of the main risks to which the Group is exposed and the capital resources available to deal with them, as well as information regarding compliance with the limits set in the risk appetite.
• The consistency of the data between the Sustainability Report and the Group's Financial Statements is ensured by means of verification procedures carried out by the teams responsible, who assess and validate the information. Likewise, the exchange of information between the different areas of the Group involved and the use of the same data sources ensures consistency and reliability between the different reports. On the other hand, to ensure that the data reported are equivalent to those obtained from the information systems, various controls are established to guarantee their reliability.

During the 2024 financial year, Grupo Catalana Occidente has carried out an exercise to assess the risks derived from climate change in its activity under alternative climate scenarios. The Group's risk profile was used to estimate the impact on the Group of two opposing climate scenarios: one with a global temperature increase of no more than 2°C, and the other with an increase of more than 2°C.

To simulate both scenarios, an analysis of the climate scenarios proposed by the Intergovernmental Panel on Climate Change (IPCC) in its August 2021 report has been carried out, where the most robust climate futures have been defined, considering environmental and socio-economic factors intrinsically linked to climate change. Based on this information, the scenarios studied are:

• Scenario with global planetary temperature increase of no more than 2°C: the SSP1-RCP2.6 scenario has been selected in line with the upper limit of the achievement of the Paris Agreement targets and the nationally determined contributions updated at COP26.
• Scenario with global temperature increase exceeding 2°C: information from the SSP5-RCP8.5 scenario has been used, which represents a non-climate-policy scenario that allows us to study the most unfavourable conditions for the climate.

The results of the analysis of these scenarios projected over a 5-year time horizon show the following possible impacts on the business:

• On the one hand, a slight increase in claims in Occident.
• On the other hand, a possible negative impact on the measurement of variable income and the measurement of fixed income in the SSP1-RCP2.6 scenario.

G. Monitoring of risks

Through mechanisms deployed to identify, analyse and address the associated risks in different areas, the Group recognises and addresses the risks it faces. To do so it boasts:

• • Stringent strategic planning
• • A process of internal self-evaluation of risks and solvency
• • Prudent management of operational risk

The Group's main committees are responsible for control and monitoring of the various risks.

Monitoring of the risk strategy is performed by the business units through early alert indicators that are the basis both for monitoring the risks and for compliance with the risk appetite approved by the Board of Directors. Also, the internal control area and the function of risk management control perform due monitoring.

H. Risk mitigation measures

The Group assesses and reviews risk mitigation measures. These include the following:

• • Underwriting risk: The main mitigation mechanism is the reinsurance program and the underwriting techniques.
• • Market risk: a detailed analysis of asset-liability matching (ALM) is carried out periodically, including VaR analysis of investment portfolios and sensitivity analysis of future scenarios.
• • Counterparty default risk: The credit rating of major financial counterparties and reinsurers is monitored. Exposure from commercial credit risk with agents and the age of the debt is also monitored.
• • Operational Risk: thought internal control system its monitoring via its integrated tool and the reporting, as described below.

Additionally, there are plans in place to ensure business continuity. These establish processes to minimise the impact on business functions in the event of a disaster, and thus reduce downtime of information and systems.

4.c) Internal Control

Grupo Catalana Occidente has an internal control system that guarantees the goals of effectiveness and efficiency in operations, reliability of financial and non-financial information, asset protection and compliance with applicable laws and regulations, and also allows it to have the appropriate mechanisms in place with respect to its solvency to identify and measure all significant existing risks and adequately cover them with eligible own funds.

To this end, the internal control system is built around five components:

• • The control environment is an essential element of internal control, since all other components are based on it, and it boosts employees' awareness of its importance. In order to ensure that the Group has an environment of adequate control, the Board of Directors applies the principles of Good Governance with transparency and rigour, availing of a human resources policy geared to motivate and retain talent and also has a Code of Ethics and Internal Behaviour Regulation that formalises the commitment of employees, Management and the Board of Directors to behave under the principles of good faith and integrity.
• • Risk assessment. The Group knows and approaches all of the risks it faces, establishing mechanisms to identify, analyse and process the corresponding risks in the various areas and has a framework policy for the entire risk management system with specific policies for each specific risk, in conformance with the establishments of the insurance regulations.
• • Control activity. The Group has a number of policies and procedures, with appropriate authorisation levels, and adequate segregation of duties, that help ensure that management and Board of Directors directives are carried out and risks associated with the achievement of goals are properly managed. The control activities of the Group take place under a framework of: (i) a suitable segregation of tasks and responsibilities both between the personnel and between the functions carried out, (ii) a suitable structure of powers and capacities for the performance of operations linked to critical processes, establishing a system of limits adjusted to the same, (iii) a system of authorisations prior to the assumption of risks, global information security guidelines, understood as the preservation of the confidentiality, integrity and availability of the information and of the systems that process it against any threat, risk or damage that may be suffered, especially in the field of cybersecurity, in accordance with its importance for the Group, and (iv) the existence of the mechanisms necessary to guarantee the continuity of the business.
• • Information and communication. The Group has adequate systems of internal and external communication. Regarding internal communication, the Group avails of a structure of committees and different processes that guarantee transparency and correct supply of information. In reference to communication with external stakeholders, it should be noted that, in compliance with the recommendations of the CNMV regarding the Internal Control System of Financial Reporting (SCIIF), in 2024 and through the Internal Control Unit and its mission, the Group has made progress in strengthening the reliability of the financial reporting released through the documentation of the processes, the homogenisation of criteria and the reflection on efficiency improvements. The result has been noticeable improvement in the traceability of this information.
• • Supervision. The internal control system is subject to a monitoring process that verifies proper operation over time. This is achieved through continuous supervision activities and periodic supervision. The continued supervision occurs over the course of the operations and includes both normal activities of management and supervision as well as other activities carried out by personnel during the performance of their roles. The scope and frequency of the periodic evaluations will essentially depend on an evaluation of the risks and the efficacy of the continued supervision processes. In addition, the Group has independent supervisors who check that adequate operation of the internal control system is maintained over time. Specifically, there are three fundamental functions: risk management control function, actuarial function and compliance verification function, which act as the second line of defence, and an internal audit function which acts as the third line of defence, undertaking integral supervision of the internal control system.

Internal Control in the area of Financial Investments

The investment control systems constitute a useful early warning system given the current situation of financial markets.

In this sense, the concentration and dispersal of fixed income and equity, the average rating of the portfolio, exposures by rating and how they have changed, changes in the optionality of assets due to changes in interest rates, and the performance of underlying assets are monitored at monthly intervals.

Furthermore, based on the regulations derived from solvency II, the Group has continued to examine the capital charge that might result from the credit risk associated with investments.

The financial investments are valued at their fair value, which corresponds to the price that would be received for the sale of a financial asset through a transaction organised between the participants in the market on the date of valuation, except:

• Financial investments included in the "Maturity portfolio", which is valued for its amortised cost using the method of the effective interest rate.
• The financial assets which are capital instruments where the fair value cannot be estimated in a reliable manner, and are valued at cost.

Fair value measurements of financial investments included in the 'Financial assets held for trading', 'Financial assets at fair value through other comprehensive income' and 'Financial assets through profit or loss' portfolios are classified according to the levels of the variables used in their measurement (see Note 3.b.3).

The breakdown of financial assets at 31 December 2024 according to the inputs used is as follows (in Ū thousand):

	Level 1	Level 2	Level 3	Total at 31/12/2024
Financial assets held for trading	-	-	-	-
Derivatives	-	-	-	-
Financial assets at fair value through profit or loss (FVPL)	1,411,847	224,292	390,612	2,026,751
Financial Investments in capital	-	-	-	-
Holdings in investment funds	232,327	-	390,612	622,939
Debt securities	106,606	-	-	106,606
Investments held for the benefit of policyholders who bear the investment risk	1,072,914	-	-	1,072,914
Deposits with credit institutions	-	224,292	-	224,292
Financial assets at fair value through other comprehensive income (FVOCI)	9,958,791	103,537	33,905	10,096,233
Financial Investments in capital	2,076,011	-	33,905	2,109,916
Debt securities	7,882,780	-	-	7,882,780
Deposits with credit institutions	-	103,537	-	103,537
Total at 31/12/2024	11,370,638	327,829	424,517	12,122,984

The same information reported at the end of 2023 is as follows (in Ū thousand):

	Level 1	Level 2	Level 3	Total at 31/12/2023
Financial assets held for trading	-	-	-	-
Derivatives	-	-	-	-
Financial assets at fair value through profit or loss (FVPL)	1,154,061	233,823	349,812	1,737,696
Financial Investments in capital	-	-	-	-
Holdings in investment funds	182,681	-	349,812	532,493
Debt securities	101,665	14,217	-	115,882
Investments held for the benefit of policyholders who bear the investment risk	869,715	-	-	869,715
Deposits with credit institutions	-	219,606	-	219,606
Financial assets at fair value through other comprehensive income (FVOCI)	9,043,313	107,757	24,627	9,175,697
Financial Investments in capital	1,830,796	-	24,627	1,855,423
Debt securities	7,212,517	3,116	-	7,215,633
Deposits with credit institutions	-	104,641	-	104,641
Total at 31/12/2023	10,197,374	341,580	374,439	10,913,393

At 31 December 2024, financial instruments at fair value classified in Level 3 represent 3.25% of financial assets (3.18% at 31 December 2023).

The Group carries out a periodic review of the existing portfolio in order to analyse whether it is necessary to change the classification of any of the existing assets. As a result of this review, there have been no reclassifications between measurement levels in 2024.

The following reclassifications between the different measurement levels took place in the 2023 financial year:

	From	Level 3
	To	Level 1	Level 2
Financial assets at fair value through other comprehensive income (FVOCI)
Financial Investments in capital		59,568	-
Debt securities		-	-
Deposits with credit institutions		-	-
Total at 31/12/2023		59,568	-

In addition, below is a breakdown of the movement in financial assets classified in Level 3 (in thousands of euros):

	Financial assets at fair value through profit or loss (FVPL) Holdings in investment funds	Financial assets at fair value through other comprehensive income (FVOCI) Financial Investments in capital	Total
Net carrying amount on 1 January 2023	296,100	108,492	404,592
Changes to the scope	13,747	(27,699)	(13,952)
Purchases	74,464	3,057	77,521
Sales and amortisations	(29,980)	-	(29,980)
Reclassifications and transfers	-	(59,568)	(59,568)
Changes in value against results or OCI	(4,519)	345	(4,174)
Effect of changes on the exchange rates	-	-	-
Net carrying amount on 31 December 2023	349,812	24,627	374,439
Changes to the scope	-	-	-
Purchases	47,905	7,726	55,631
Sales and amortisations	(3,847)	(34)	(3,881)
Reclassifications and transfers	-	-	-
Changes in value against results or OCI	(3,258)	1,586	(1,672)
Effect of changes on the exchange rates	-	-	-
Net carrying amount on 31 December 2024	390,612	33,905	424,517

In order to obtain the fair value of the equity assets classified in Level 3, for whose measurement there are no directly observable market data, alternative techniques are used, based mainly on quotations provided by brokers or market contributors. The Group has assessed that small changes in the assumptions used in these measurement models would involve no substantial changes in the values obtained.

The credit rating of fixed income issuers and deposits with credit institutions at 31 December 2024 and 2023 (amounts in Ū thousand) according to phases or stages based on their risk of expected loss is detailed below (amounts in thousands of euros):

31/12/2024	Stage 1	Stage 2	Stage 3	Not applicable	Total
Cash and other equivalent liquid assets	1,426,708	-	-	-	1,426,708
AAA	20,152	-	-	-	20,152
AA	53,383	-	-	-	53,383
A BBB	1,303,428 12,155	- -	- -	- -	1,303,428 12,155
Under investment grade	37,343	-	-	-	37,343
No rating	248	-	-	-	248
Gross amount	1,426,709	-	-	-	1,426,709
Value adjustments for impairment	(1)	-	-	-	(1)
FA at fair value through profit or loss				330,898	330,898
Debt securities - Public issuers				2,031	2,031
AAA AA				- 2,031	- 2,031
A				-	-
BBB				-	-
Under investment grade				-	-
No rating Debt securities - Private issuers				- 104,575	- 104,575
AAA				-	-
AA				-	-
A				61,073	61,073
BBB				43,502	43,502
Under investment grade No rating				- -	- -
Deposits with credit institutions				224,292	224,292
AAA				-	-
AA				-	-
A BBB				224,292 -	224,292 -
Under investment grade				-	-
No rating				-	-
FA at fair value through changes in other comprehensive	7,973,183	13,134	-	-	7,986,317
income
Debt securities - Public issuers	3,494,949	13,134	-	-	3,508,083
AAA	511,237	-	-	-	511,237
AA A	425,142 2,445,962	- -	- -	- -	425,142 2,445,962
BBB	112,608	-	-	-	112,608
Under investment grade	-	13,134	-	-	13,134
No rating	-	-	-	-	-
Debt securities - Private issuers AAA	4,374,697 32,244	- -	- -	- -	4,374,697 32,244
AA	310,546	-	-	-	310,546
A	2,473,025	-	-	-	2,473,025
BBB	1,543,546	-	-	-	1,543,546
Under investment grade No rating	- 15,336	- -	- -	- -	- 15,336
Deposits with credit institutions	103,537	-	-	-	103,537
AAA	2,726	-	-	-	2,726
AA	-	-	-	-	-
A BBB	98,311 500	- -	- -	- -	98,311 500
Under investment grade	2,000	-	-	-	2,000
No rating	-	-	-	-	-
FA at amortised cost	477,476	2,239	10,027	-	489,742
Deposits with credit institutions AAA	295,577 149,260	- -	- -	- -	295,577 149,260
AA	37,376	-	-	-	37,376
A	90,851	-	-	-	90,851
BBB	18,090	-	-	-	18,090
Under investment grade No rating	- -	- -	- -	- -	- -
Gross amount	295,577	-	-	-	295,577
Value adjustments for impairment	-	-	-	-	-
Loans	181,899	2,239	10,027	-	194,165
AAA	-	-	-	-	-
AA A	- -	- -	- -	- -	- -
BBB	48,747	-	-	-	48,747
Under investment grade	50,080	-	-	-	50,080

31/12/2024	Stage 1	Stage 2	Stage 3	Not applicable	Total
No rating	87,667	2,239	13,842	-	103,748
Gross amount Value adjustments for impairment	186,494 (4,595)	2,239 -	13,842 (3,815)	- -	202,575 (8,410)

31/12/2023	Stage 1	Stage 2	Stage 3	Not applicable	Total
Cash and other equivalent liquid assets	1,373,741	-	-	-	1,373,741
AAA	67,434	-	-	-	67,434
AA	47,063	-	-	-	47,063
A	1,224,897	-	-	-	1,224,897
BBB	22,655	-	-	-	22,655
Under investment grade	11,255	-	-	-	11,255
No rating	438	-	-	-	438
Gross amount	1,373,742	-	-	-	1,373,742
Value adjustments for impairment	(1)	-	-	-	(1)
FA at fair value through profit or loss				335,488	335,488
Debt securities - Public issuers				1,949	1,949
AAA				-	-
AA				1,949	1,949
A				-	-
BBB				-	-
Under investment grade				-	-
No rating				-	-
Debt securities - Private issuers				113,933	113,933
AAA				-	-
AA				-	-
A				73,115	73,115
BBB				40,818	40,818
Under investment grade				-	-
No rating				-	-
Deposits with credit institutions				219,606	219,606
AAA				-	-
AA				-	-
A				219,606	219,606
BBB				-	-
Under investment grade				-	-
No rating				-	-
FA at fair value through changes in other comprehensive
income	7,306,133	14,141	-	-	7,320,274
Debt securities - Public issuers	3,009,707	14,141	-	-	3,023,848
AAA	331,583	-	-	-	331,583
AA	285,716	-	-	-	285,716
A	2,271,922	-	-	-	2,271,922
BBB	120,486	-	-	-	120,486
Under investment grade	-	14,141	-	-	14141
No rating	-	-	-	-	-
Debt securities - Private issuers	4,191,785	-	-	-	4,191,785
AAA	10,974	-	-	-	10,974
AA	248,875	-	-	-	248,875
A	1,993,945	-	-	-	1,993,945
BBB	1,766,234	-	-	-	1,766,234
Under investment grade	156,472	-	-	-	156,472
No rating	15,285	-	-	-	15,285
Deposits with credit institutions	104,641	-	-	-	104,641
AAA	-	-	-	-	-
AA	-	-	-	-	-
A	101,229	-	-	-	101,229
BBB	-	-	-	-	-
Under investment grade	3,412	-	-	-	3,412
No rating	-	-	-	-	-
FA at amortised cost	476,935	796	9,062	-	486,793
Deposits with credit institutions	287,712	-	-	-	287,712
AAA	87,783	-	-	-	87,783
AA	36,103	-	-	-	36,103
A	158,073	-	-	-	158,073
BBB	5,753	-	-	-	5,753
Under investment grade	-	-	-	-	-

31/12/2023	Stage 1	Stage 2	Stage 3	Not applicable	Total
No rating	-	-	-	-	-
Gross amount	287,712	-	-	-	287,712
Value adjustments for impairment	-	-	-	-	-
Loans	189,223	796	9,062	-	199,081
AAA	-	-	-	-	-
AA	-	-	-	-	-
A	-	-	-	-	-
BBB	45,878	-	-	-	45,878
Under investment grade	55,325	-	-	-	55,325
No rating	92,622	796	12,504	-	105,922
Gross amount	193,825	796	12,504	-	207,125
Value adjustments for impairment	(4,602)	-	(3,442)	-	(8,044)

At 31 December 2024 and 31 December 2023, no credit risk attributable to the Group has been identified in relation to financial assets designated as at fair value through profit or loss, as they mainly correspond to investments on behalf of policyholders who bear the investment risk. Given the credit quality of the financial assets mandatorily measured at fair value through profit or loss, the credit risk is not considered to be significant in relation to their total exposure. Changes in the measurement of financial assets at fair value through profit or loss as a result of changes in credit risk are not significant due to their credit quality.

The investment criteria also include various measures of risk diversification by sector, country and currency (amounts in Ū thousand):

	31/12/2024				31/12/2023
Sector	Equity instruments	%	Debt securities	%	Equity instruments	%	Debt securities	%
Communications	186,245	6.82%	374,972	4.69%	137,293	5.75 %	390,224	5.32%
Cyclical consumer goods	142,485	5.21%	551,728	6.91 %	128,862	5.39%	609,095	8.31%
Non-cyclical consumer goods	238,641	8.73 %	609,771	7.63 %	242,680	10.16%	600,044	8.19%
Energy	65,537	2.40%	95,733	1.20%	75,656	3.17%	118,033	1.61 %
Financial	922,930	33.77%	1,881,637	23.55%	752,127	31.50%	1,669,295	22.77%
Industrial	245,815	8.99%	486,590	6.09%	226,211	9.47 %	473,567	6.46%
Technological	285,377	10.44%	150,622	1.89%	249,479	10.45%	148,177	2.02%
Public Services	176,222	6.45%	309,468	3.87%	168,060	7.04 %	284,997	3.89%
Diversified	3,494	0.13 %	-	-	4,035	0.17 %	-	-
Commodities	27,289	1.00%	21,231	0.27%	30,769	1.29%	15,700	0.21%
Governance	-	-	3,507,634	43.90%	-	-	3,022,383	41.22%
Others (*)	438,820	16.06%	-	-	372,744	15.61%	-	-
Total	2,732,855	100.00%	7,989,386	100.00%	2,387,916	100.00%	7,331,515	100.00%

(*) Includes investment funds.

Year 2024 Ū thousand

Country	Equity instruments	Public Fixed Income	Private Fixed Income	Deposits in banks	Cash and other equivalent assets
Spain	726,301	2,458,360	1,620,488	178,622	755,793
Greece	-	-	-	-	4,809
Portugal	90	-	1,481	2,500	9,696
Ireland (*)	167,621	21,943	59,392	513	4,892
Italy	80,427	81,516	3,609	(38,959)	957
Germany	315,094	238,923	222,631	(8,729)	19,432
France	462,135	152,927	868,808	2,152	2,137
United Kingdom	13,690	2,927	253,121	43,219	1,717
The Netherlands	114,850	34,957	499,587	95,607	414,848
Other Europe	347,762	257,725	296,270	271,973	18,071
U.S.A.	486,093	93,187	568,442	232	10,900
Rest OECD	9,728	141,966	81,664	24,158	91,054
Rest of the world	9,064	25,683	3,779	52,118	92,402
Total	2,732,855	3,510,114	4,479,272	623,406	1,426,708

(*) Ireland equity instruments are investment funds.

Year 2023 Ū thousand

Country	Equity instruments	Public Fixed Income	Private Fixed Income	Deposits in banks	Cash and other equivalent assets
Spain	651,087	2,277,968	1,601,241	230,751	744,095
Greece	-	-	-	-	2,038
Portugal	68	-	1,445	3,412	11,899
Ireland (*)	150,330	12,979	96,722	38,714	62,695
Italy	65,922	83,447	4,717	(39,222)	1,187
Germany	251,976	156,228	280,581	(645)	17,734
France	438,480	143,336	738,143	13,794	1,231
United Kingdom	12,475	2,818	231,284	31,059	13,771
The Netherlands	87,626	22,664	546,043	50,343	270,460
Other Europe	302,425	104,555	238,436	219,178	12,437
U.S.A.	410,985	79,755	506,607	2,196	6,593
Rest OECD	9,550	115,697	58,745	19,534	128,880
Rest of the world	6,992	26,350	1,754	42,845	100,721
Total	2,387,916	3,025,797	4,305,718	611,959	1,373,741

(*) Ireland equity instruments are investment funds.

Below are the financial investments broken down by currencies, along with the other assets and liabilities held by the Group as of 31 December 2024 and 2023:

Year 2024 Ū thousand

Currency	Equity Instruments	Debt securities	Deposits in banks	Cash and other equivalent assets	Assets under insurance and reinsurance contracts	Other assets	Total Assets at 31/12/2024
Euro	1,934,082	7,598,375	359,502	1,047,155	656,869	5,161,317	16,757,300
GB pound	4,442	25,778	18,992	28,847	30,605	69,944	178,608
U.S. Dollar	493,238	204,273	178,703	127,884	123,238	99,507	1,226,843
Other	301,093	160,960	66,209	222,822	149,687	181,893	1,082,664
Total	2,732,855	7,989,386	623,406	1,426,708	960,399	5,512,661	19,245,415

Year 2023 Ū thousand

Currency	Equity Instruments	Debt securities	Deposits in banks	Cash and other equivalent assets	Assets under insurance and reinsurance contracts	Other assets	Total Assets at 31/12/2023
Euro	1,732,219	6,991,322	408,133	955,870	638,643	4,636,304	15,362,491
GB pound	5,085	26,443	6,342	47,234	33,341	131,398	249,843
U.S. Dollar	411,851	169,834	140,978	168,741	103,785	85,097	1,080,286
Other	238,761	143,916	56,506	201,896	126,899	158,525	926,503
Total	2,387,916	7,331,515	611,959	1,373,741	902,668	5,011,324	17,619,123

Year 2024 Ū thousand

Currency	Subordinated liabilities	Liabilities under insurance and reinsurance contracts	Other liabilities	Total Liabilities at 31/12/2024
Euro	247,938	9,777,769	1,932,939	11,958,646
GB pound	-	68,855	52,688	121,543
U.S. Dollar	-	294,263	50,769	345,032
Other	-	368,518	162,758	531,276
Total	247,938	10,509,405	2,199,154	12,956,497

Year 2023 Ū thousand

Currency	Subordinated liabilities	Liabilities under insurance and reinsurance contracts	Other liabilities	Total Liabilities at 31/12/2023
Euro	156,205	9,234,854	1,771,926	11,162,985
GB pound	-	69,340	71,643	140,983
U.S. Dollar	-	252,708	43,545	296,253
Other	-	283,367	119,246	402,613
Total	156,205	9,840,269	2,006,360	12,002,834

The average spot exchange rates at year-end most often used in translating these types of foreign currency balances into euros coincide with the rates published by the European Central Bank and are detailed in Note 3.g.4 to the consolidated financial statements.

The risk arising from credit derivatives held by the Group can be considered insignificant.

5. Main transactions and changes in the consolidation perimeter

5.a) Acquisition of 100% of Peñalvento S.L.U.

On 25 September 2018, Grupo Catalana Occidente Activos Inmobiliarios S.L. ("GCO Activos Inmobiliarios"), a wholly-owned subsidiary of the Group, reached an agreement to acquire 100% of Peñalvento, S.LU. ("Peñalvento"), from Inmobiliaria Colonial, SOCIMI, S.A. with the ultimate aim of obtaining ownership of the development for the construction of an office building in Méndez Álvaro Norte I (Arganzuela district, Madrid). This building would become part of the Group's real estate assets once the conditions precedent stipulated in the aforementioned contract were met, which included, among others, the completion of construction and delivery of the building to GCO Activos Inmobiliarios.

At 31 December 2023, under the sub-heading "Sundry debtors", Ū28,901 thousand corresponding to the first three payments made by GCO Activos Inmobiliarios for the aforementioned acquisition of Peñalvento were recorded (see Note 7.b of the consolidated financial statements for 2023).

Once the aforementioned conditions precedent had been fulfilled, on 7 March 2024 the aforementioned share purchase and sale transaction was executed, and Peñalvento became part of the Group as of that date. The final price of the transaction, after the corresponding adjustments, amounted to Ū108,207 thousand. The entire consideration was paid in cash, after deduction of the first three payments mentioned in the previous paragraph.

Accounting for the business mergers

The effective takeover date was 7 March 2024, the date on which the execution of the sales contract was formalised. The Group measured the identifiable assets acquired and liabilities assumed at their fair value at the date of the combination, according to the IFRS 3.

For this purpose, the Group performed a Purchase Price Allocation (PPA) analysis to determine the fair value of Peñalvento's assets and liabilities at the acquisition date. The fair value of the identified assets, net of the liabilities assumed, was Ū108,510 thousand, and included capital gains on properties amounting to Ū45,000 thousand, which are amortised according to the useful life of the real estate asset. As a result of the recognition of these capital gains, a deferred tax liability of Ū11,250 thousand was recognised.

No other intangible assets of the acquired entity were recognised during the PPA period.

Expenses incurred in the transaction amounted to Ū404 thousand and were recorded in the consolidated profit and loss account.

5.b) Acquisition of 100% of Tanatorio de Palencia, S.L.

On 11 December 2023, Mémora Servicios Funerarios, S.L. ("MSF"), a company wholly owned by the Group, signed with the company Asistencia y Gestión San Miguel, S.L. a purchase and sale contract for the acquisition of 100% of the shares of Tanatorio de Palencia, S.L. ("Tanatorio Palencia") for Ū13,500 thousand. The transaction was subject to the condition precedent of the necessary authorisation from the Spanish National Markets and Competition Commission ("CNMC"), which was authorised on 17 January 2024.

Once this condition precedent was met, on 29 February 2024 the aforementioned purchase and sale of shares was executed, and Tanatorio Palencia became part of GCO through Grupo Mémora on the aforementioned date. Finally, the price paid by MSF was Ū14,422 thousand, corresponding to the initially agreed price of Ū13,500 thousand, adjusted by the net financial debt. All of this consideration was paid in cash.

Provisional accounting for the business mergers

The effective takeover date was 29 February 2024, the date on which the execution of the sales contract was formalised. The Group has valued the identifiable assets acquired and liabilities assumed at their fair value at the date of the combination, according to the IFRS 3.

For this purpose, the Group has performed a Purchase Price Allocation (PPA) analysis to determine the fair value of Tanatorio Palencia's assets and liabilities at the acquisition date. Accounting regulations establish a period of one year, during which the valuation of assets and liabilities acquired is not final. Therefore, the valuations performed are the best estimate available on the date of drafting these consolidated financial statements, these being, in any case, provisional.

The fair value of the assets identified net of liabilities amounts to Ū4,034 thousand. No intangible assets of the acquired entities were recognised during the PPA period.

Expenses incurred in the transaction amounted to Ū46 thousand and were recorded in the consolidated profit and loss account.

The transaction generated goodwill of Ū10,388 thousand (see Note 10).

5.c) Merger of Tecniseguros Sociedad de Agencia de Seguros, S.A.U. ('Tecniseguros') and Bilbao Vida y Gestores Financieros, S.A.U. ('Bilbao Vida')

On 30 April 2024, the management bodies of Tecniseguros and Bilbao Vida signed a joint merger plan under which it was envisaged that they would be unified into a single entity, through the absorption of Bilbao Vida by Tecniseguros, the latter changing its corporate name to Occident GCO Mediadores, Sociedad de Agencia de Seguros, S.A.U.

Consequently, on 31 May 2024, the sole shareholders of the companies involved in the merger took the corresponding merger decisions.

This operation was not subject to obtaining any administrative authorisation and, after the execution of the merger deed on 12 June 2024, it was registered in the Mercantile Register of Barcelona.

5.d) Reverse merger of Taurus Bidco, S.L.U. ("Taurus") and Mémora Servicios Integrales, S.L.U. ("MSF")

On 30 June 2024, the management bodies of Taurus and MSF, companies belonging to Grupo Mémora, signed a common reverse merger project through the absorption of Taurus by MSF.

Consequently, on 19 August 2024, the sole shareholders of Taurus and MSF agreed to take the following merger decisions.

This operation was not subject to obtaining any administrative authorisation and, after the execution of the merger deed on 5 September 2024, it was registered in the Mercantile Register of Barcelona.

5.e) Merger of Grupo Catalana Occidente Activos Inmobiliarios, S.L. and Peñalvento, S.L.U.

On 23 September 2024, the management bodies of GCO Activos Inmobiliarios and Peñalvento signed a joint merger plan under which they were to be merged into a single entity through the absorption of Peñalvento by GCO Activos Inmobiliarios.

On 24 October 2024, the general shareholders' meeting of GCO Activos Inmobiliarios and the sole shareholder of Peñalvento agreed to the merger, and the corresponding announcements were published.

On 29 October 2024, the public deed of the aforementioned merger by absorption was executed and registered at the Mercantile Registry of Barcelona.

5.f) Merger between Occident GCO, S.A.U. de Seguros y Reaseguros ("Occident") and Nortehispana de Seguros y Reaseguros, S.A.U. ("Nortehispana")

On 25 April 2024, the management bodies of Occident and Nortehispana signed a joint merger plan under which it was envisaged that they would be integrated into a single entity through the absorption of Nortehispana by Occident, subject to the suspensive condition of authorisation by the Ministry of Economy, Trade and Enterprise.

Consequently, on 30 May 2024, the sole shareholders of the companies involved in the merger took the corresponding merger decisions.

After obtaining authorisation for the merger from the Ministry of Economy, Trade and Enterprise on 27 December 2024, the corresponding deed of merger was executed on 30 December 2024 and registered in the Mercantile Registry of Madrid.

6. Cash and cash equivalents

The breakdown of cash and cash equivalents at 31 December 2024 and 2023 are as follows:

	Ū thousand
Cash and other cash equivalents	31/12/2024	31/12/2023
Cash in banks and in cash (*)	1,408,534	1,322,329
Other financial assets	18,174	51,412
Total	1,426,708	1,373,741

(*) At 31 December 2024 and 2023 includes Ū34,994 thousand and Ū97,006 thousand, respectively, of restricted cash at banks from Atradius NV. This cash is not immediately available to the Group for normal business use or investment.

7. Financial assets

The breakdown of financial assets at 31 December 2024, without taking into account the shares in entities valued by equity accounting, is as follows (in Ū thousand):

	Financial assets at fair value through profit or loss (FVPL)		Financial assets	Financial
Investments classified by category of financial asset and by type	Designated	Compulsory	at fair value through other comprehensive income (FVOCI)	assets measured at amortised cost	Total at 31/12/2024
Financial investments:	-	2,026,751	10,096,233	537,733	12,660,717
Equity Instruments	-	622,939	2,109,916	-	2,732,855
- Financial investments in capital	-	-	2,109,916	-	2,109,916
- Stakes in investment funds	-	622,939	-	-	622,939
Debt securities	-	106,606	7,882,780	-	7,989,386
Deposits with credit institutions	-	224,292	103,537	295,577	623,406
Derivatives	-	-	-	-	-
Investments on behalf of policyholders who bear the investment risk	-	1,072,914	-	3,783	1,076,697
Loans	-	-	-	194,165	194,165
Other financial assets	-	-	-	12,827	12,827
Deposits for accepted	-	-	-	31,381	31,381
reinsurance
Receivables:	-	-	-	438,014	438,014
Receivables for direct insurance,	-	-	-	120,888	120,888
coinsurance and reinsurance
Other receivables	-	-	-	317,126	317,126
Total financial assets	-	2,026,751	10,096,233	975,747	13,098,731

The same information reported at year-end, 31 December 2023 is as follows (in Ū thousand):

	Financial assets at fair value through profit or loss (FVPL)		Financial assets at fair value	Financial assets
Investments classified by category of financial asset and by type	Designated	Compulsory	through other comprehensive income (FVOCI)	measured at amortised cost	Total at 31/12/2023
Financial investments:	-	1,737,696	9,175,697	525,930	11,439,323
Equity Instruments	-	532,493	1,855,423	-	2,387,916
- Financial investments in capital	-	-	1,855,423	-	1,855,423
- Stakes in investment funds	-	532,493	-	-	532,493
Debt securities	-	115,882	7,215,633	-	7,331,515
Deposits with credit institutions	-	219,606	104,641	287,712	611,959
Derivatives	-	-	-	-	-
Investments on behalf of policyholders who bear the investment risk	-	869,715	-	2,366	872,081
Loans	-	-	-	199,081	199,081
Other financial assets	-	-	-	12,527	12,527
Deposits for accepted reinsurance	-	-	-	24,244	24,244
Receivables:	-	-	-	330,040	330,040
Receivables for direct insurance,	-	-	-	45,127	45,127
coinsurance and reinsurance
Other receivables	-	-	-	284,913	284,913
Total financial assets	-	1,737,696	9,175,697	855,970	11,769,363

7.a) Financial investments

The movements in this section, broken down by portfolio, are shown below (in Ū thousand):

Financial assets at fair value through profit or loss

					Ū thousand
	Financial assets at fair value through profit or loss (FVPL)
	Equity Instruments	Debt securities	Investments held for the benefit of policyholders who bear the investment risk (1)	Deposits with credit institutions	Total
Net carrying amount on 1 January 2023	612,032	107,121	748,723	220,943	1,688,819
Changes to the scope	-	-	-	-	-
Purchases	618,192	35,325	126,292	-	779,809
Sales and amortisations	(698,364)	(449)	(97,583)	(10,442)	(806,838)
Reclassifications and transfers	456	-	(456)	-	-
Change of implicit interest	-	525	-	(24)	501
Changes in value against profits	(810)	(26,646)	92,739	9,129	74,412
Effect of changes on the exchange rates	987	6	-	-	993
Net carrying amount on 31 December 2023	532,493	115,882	869,715	219,606	1,737,696
Changes to the scope	-	-	-	-	-
Purchases	685,706	2,023	164,066	-	851,795
Sales and amortisations Reclassifications and transfers	(607,317) 450	(1,029) (14,017)	(75,329) (450)	(10,486) 14,017	(694,161) -
Change of implicit interest	-	(7)	-	(30)	(37)
Changes in value against profits	13,560	3,738	114,912	1,185	133,395
Effect of changes on the exchange rates	(1,953)	16	-	-	(1,937)
Net carrying amount on 31 December 2024	622,939	106,606	1,072,914	224,292	2,026,751

(1) At 31 December 2024, net unrealised capital gains on investments on behalf of policyholders who bear the investment risk amount to Ū 105,644 thousand (Ū 84,264 thousand at 31 December 2023).

Most of the changes in value recognised with credit/charge to the profit and loss account, net of the related tax effect and of the allocation to minority interests, arose from financial instruments listed on organised markets or which, being unlisted, the Group has a sufficiently reliable market measurement (see Note 4.c).

				Ū thousand
	Financial assets at fair value through other comprehensive income (FVOCI)
	Financial Investments in capital	Debt securities	Deposits with credit institutions	Total
Net carrying amount on 1 January 2023	1,429,911	6,751,811	111,673	8,293,395
Changes to the scope	(27,844)	-	-	(27,844)
Purchases	296,778	1,588,823	3,412	1,889,013
Sales and amortisations	(54,603)	(1,405,035)	(6,245)	(1,465,883)
Reclassifications and transfers	-	-	-	-
Changes in value against OCI	211,006	260,470	1,680	473,156
Change of implicit interest (*)	-	27,047	(5,879)	21,168
Effect of changes on the exchange rates	175	(7,483)	-	(7,308)
Net carrying amount on 31 December 2023	1,855,423	7,215,633	104,641	9,175,697
Changes to the scope	-	-	-	-
Purchases	109,348	1,995,370	9,516	2,114,234
Sales and amortisations	(118,841)	(1,475,877)	(9,942)	(1,604,660)
Reclassifications and transfers	-	(3,034)	3,034	-
Changes in value against OCI	264,183	98,552	(234)	362,501
Change of implicit interest (*)	-	47,434	(3,478)	43,956
Effect of changes on the exchange rates	(197)	4,702	-	4,505
Net carrying amount on 31 December 2024	2,109,916	7,882,780	103,537	10,096,233

(*) Includes the variation for the year derived from implicit interest, both of what is above par and generates implicit interest, as well as the implicit interest that is derecognised with the sale and maturity of securities in the portfolio.

Most of the changes in value recognised with credit/charge to reserves, net of the related tax effect and the allocation to minority interests, arose from financial instruments listed on organised markets or for which the Group has a sufficiently reliable market measurement when they are not listed.

During the course of the 2024 financial year, Ū(7,061) thousand and Ū22,594 thousand corresponding to net losses on debt instruments and net gains on equity investments, respectively, which were unrealised in the "Financial assets at fair value through other comprehensive income" portfolio, were derecognised from "Other comprehensive income" and recognised in the consolidated profit and loss account for the period and in reserves, respectively, following their disposal. In 2023, net losses of Ū(10,038) thousand and Ū(32,999) thousand were recognised in the profit and loss account and reserves, respectively.

	Ū thousand
	Financial assets measured at amortised cost
	Non-mortgage loans and advances on policies	Investments held for the benefit of policyholders who bear the investment	Mortgage loans	Other financial assets	Deposits with credit institutions	Deposits constituted by accepted reinsurance	Debt securities	Total
Net carrying amount on 1 January 2023	148,991	risk 1,831	58,799	10,787	96,675	23,604	-	340,687
Changes to the scope	785	-	-	2,631	-	-	-	3,416
Purchases	7,169	535	5,513	248	344,976	2,663	-	361,104
Sales and amortisations	(7,610)	-	(10,993)	(1,139)	(151,425)	(1,952)	-	(173,119)
Reclassifications and	-	-	-	-	-	-	-	-
transfers Change of implicit interest	(62)	-	27	-	-	-	-	(35)
Effect of changes on the exchange rates	-	-	-	-	(2,514)	(71)	-	(2,585)
Changes in loss due to value impairment	(3,538)	-	-	-	-	-	-	(3,538)
Net carrying amount on 31 December 2023	145,735	2,366	53,346	12,527	287,712	24,244	-	525,930
Changes to the scope	-	-	-	-	-	-	-	-
Purchases	5,891	1,417	4,275	612	464,262	10,784	-	487,241
Sales and amortisations	(5,964)	-	(8,302)	(312)	(466,579)	(3,573)	-	(484,730)
Reclassifications and	-	-	-	-	-	-	-	-
Change of implicit interest	(307)	-	8	-	-	-	-	(299)
Effect of changes on the exchange rates	-	-	-	-	10,182	(74)	-	10,108
Changes in loss due to value impairment	7	-	(524)	-	-	-	-	- (517)
Net carrying amount on 31 December 2024	145,362	3,783	48,803	12,827	295,577	31,381	-	537,733

At 31 December 2024, it is estimated that the fair value of financial investments classified as 'Financial assets at amortised cost' does not differ significantly from their carrying amount.

7.a.1) Equity investments

The Group has designated investments in equity instruments measured at fair value through other comprehensive income as the Group's intention is to hold them for the long term. The breakdown of the balances of this sub-heading at 31 December 2024 and 2023, is as follows:

	Ū thousand
	FVPL		FVOCI
	31/12/2024	31/12/2023	31/12/2024	31/12/2023
Shares of listed companies	-	-	2,073,879	1,829,679
Shares of non-listed companies	-	-	36,037	25,744
Total	-	-	2,109,916	1,855,423

The fair value of the shares of unlisted companies has been determined using measurement methods that are generally accepted in the financial industry.

Dividends received by the Group in 2024 amounted to Ū80,367 thousand (Ū69,211 thousand in 2023).

7.a.2) Holdings in investment funds

A breakdown of the investments classified under this sub-heading by type of investment is given below:

	Ū thousand
	FVPL
	31/12/2024 31/12/2023
Fixed income	77,646	68,523
Variable income	351,668	304,775
Money market	100,003	62,491
Other investment funds	93,622	96,704
Total	622,939	532,493

The value of the investment funds has been taken to be the net asset value published by the fund management companies.

Listed below is the equity of the investment funds managed by GCO Gestión de Activos, and that are not consolidated (see Note 2.f.1), as well as the participation available to the Group of each one of them on 31 December 2024 and 2023 (excluding the participation corresponding to investments on behalf of policyholders, see Note 7.a.4):

	31/12/2024			31/12/2023
	Equity managed by GCO Gestión de Activos at 31.12.2024 (Ū thousands)	Shareholding percentage (%)	Equity (Ū thousand)	Equity managed by GCO Gestión de Activos at 31.12.2023 (Ū thousands)	Shareholding percentage (%)	Equity (Ū thousand)
GCO Mixto, FI	182,092	-	-	170,185	-	-
GCO Acciones, FI	189,534	29%	55,640	172,364	28%	47,647
GCO Eurobolsa, FI	72,625	30%	21,503	70,236	28%	19,756
GCO Renta Fija, FI	56,590	-	-	39,638	-	-
GCO Global 50, FI	113,346	-	-	85,310	-	-
GCO Internacional, FI	245,593	-	-	170,015	-	-
GCO Bolsa USA, FI	65,722	20%	13,182	32,986	30%	9,940
GCO Ahorro, FI	80,297	-	-	66,551	-	-
Total	1,005,799		90,325	807,285		77,343

7.a.3) Fixed-income securities

	Ū thousand
	FVPL		FVOCI
	31/12/2024	31/12/2023	31/12/2024	31/12/2023
Public debt, securities and public bonds	2,031	1,949	3,508,083	3,023,848
Issued by financial institutions and other private entities	104,575	113,933	4,374,697	4,191,785
Total	106,606	115,882	7,882,780	7,215,633

The breakdown of the balances included under this sub-heading is as follows:

The average internal rate of return of the existing portfolio at 31 December 2024 is 3.19% (3.24% at 31 December 2023), with an estimated average duration of approximately 3.94 years (3.66 years at 31 December 2023).

The income earned on these fixed-income securities, other than the change in their fair value, basically from interest and the net accrual of positive and negative premiums, is recorded under "Interest income" in the profit and loss account, amounting to a total of Ū219,235 thousand in the 2024 financial year (Ū177,406 thousand in the 2023 financial year).

The maturities of the securities included under this sub-heading, classified by the portfolio to which they were assigned at 31 December 2024 and 2023 and taking their fair value into account, are as follows:

	Ū thousand
Residual maturity	FVPL		FVOCI
	31/12/2024	31/12/2023	31/12/2024	31/12/2023
Less than 1 year	2,030	-	1,282,695	1,218,462
1 to 3 years	1,015	1,949	2,599,959	2,823,346
3 to 5 years	-	-	1,715,635	1,218,964
5 to 10 years	-	-	1,554,646	1,347,279
10 to 15 years	-	-	315,969	159,013
15 to 20 years	18,605	19,761	211,813	249,653
20 to 25 years	65,697	24,625	139,436	126,112
Over 25 years	19,259	69,547	62,627	72,804
Total	106,606	115,882	7,882,780	7,215,633

7.a.4) Direct holding contracts: Investments held for the benefit of insurance policyholders who bear the investment risk

The breakdown by nature of the investment as at 31 December 2024 and 2023 for direct holding contracts is as follows (in Ū thousand):

	Ū thousand
	FVPL		Financial assets measured at amortised cost
	31/12/2024	31/12/2023	31/12/2024	31/12/2023
Variable Income	-	-	-	-
Holdings in investment funds	1,072,914	869,715	-	-
Fixed-Income	-	-	-	-
Other Balances affected
- Banks (current accounts and short-term deposits)	-	-	3,783	2,366
- Others	-	-	-	-
Total	1,072,914	869,715	3,783	2,366

The balance of "Other assigned balances" is included in the "Financial assets at amortised cost" portfolio, as it is the policyholder who assumes the investment risk in each year.

The market value of investments held for the benefit of insurance policyholders who bear the investment risk is determined by the same method as the market value of the Group's own investments of the same type.

A breakdown of the above fixed-income securities and other assigned balances by maturity year is given below:

	Ū thousand
	31/12/2024		31/12/2023
	Other			Other
	Fixed income	Balances	Fixed income	Balances
Residual maturity		affected		affected
Less than 1 year	-	3,783	-	2,366
1 to 3 years	-	-	-	-
3 to 5 years	-	-	-	-
5 to 10 years	-	-	-	-
Over 10 years	-	-	-	-
Rest of investments without maturity	-	-	-	-
Total	-	3,783	-	2,366

At 31 December 2024 and 2023 the balance of holdings in investment funds is classified in the portfolio measured at fair value with changes in the profit or loss account and corresponds to investment funds managed by GCO Gestión de Activos according to the following breakdown:

Type of		Ū thousand
Asset	Description (name)	31/12/2024	31/12/2023
IF	GCO Ahorro	74,338	61,217
IF	GCO Mixto	177,575	165,853
IF	GCO Acciones	121,576	113,183
IF	GCO Eurobolsa	47,013	46,390
IF	GCO Renta Fija	52,861	36,191
IF	GCO Global 50	100,611	73,558
IF	GCO Internacional	234,396	160,205
IF	GCO Bolsa USA	49,963	21,129
		858,333	677,726

On 31 December 2024 and 2023, the Group's share in the investment funds managed by GCO Gestión de Activos, corresponding to policyholder investments, is as follows:

	Shareholding percentage (%)
	31/12/2024	31/12/2023
GCO Mixto, FI	98%	97%
GCO Acciones, FI	64%	66%
GCO Eurobolsa, FI	65%	66%
GCO Renta Fija, FI	93%	91%
GCO Global 50, FI	89%	86%
GCO Internacional FI	95%	94%
GCO Ahorro, FI	93%	92%
GCO Bolsa USA, FI	76%	64%

7.a.5) Loans and other financial assets

The breakdown of the balances making up this sub-heading at 31 December 2024 and 2023 is as follows:

	Ū thousand Financial assets measured at amortised cost
	31/12/2024	31/12/2023
Non-mortgage loans and advances on policies:
· Advances on policies	12,226	14,025
· Other loans	133,136	131,710
Mortgage loans	48,803	53,346
Other financial assets	12,827	12,527
Total	206,992	211,608

The maturities of mortgage loans and other loans held by the Group at amortised cost are as follows:

	Ū thousand
	Financial assets measured at
	amortised cost
Year of maturity	31/12/2024	31/12/2023
Matured and up to three months	7,982	5,624
Between 3 months and up to 1 year	14,361	10,308
Between one year and five years	131,045	124,119
Over five years	28,551	45,005
Total	181,939	185,056

There are some mortgage loans ("reverse mortgages"), totalling Ū33,044 thousand, at a fixed interest rate of between 6.00% and 7.50%. The remaining mortgage loans bear annual interest rates of between 2.40% and 6.02% (between 2.93% and 6.15% in 2023). The interest rate is fixed in the first year and variable from the second year. The reference rate used is the one-year interbank rate (EURIBOR).

7.a.6) Deposits with credit institutions

The long-term deposits relate mainly to euro deposits, trust deposits, structured deposits and asset swaps held with credit institutions. The maturity of these deposits is as follows:

	Ū thousand
	31/12/2024 31/12/2023
Residual maturity	FVPL	FVOCI	Financial assets measured at amortised cost	Total	FVPL	FVOCI	Financial assets measured at amortised cost	Total
From 3 months to 1 year	-	2,750	294,350	297,100	96,008	169,796	287,712	553,516
From 1 year to 3 years	39,160	22,294	1,227	62,681	-	(77,254)	-	(77,254)
From 3 years to 5 years	-	5,051	-	5,051	-	15,478	-	15,478
From 5 years to 10 years	-	(8,935)	-	(8,935)	-	(10,950)	-	(10,950)
From 10 years to 15 years	48,487	30,986	-	79,473	-	(1,899)	-	(1,899)
From 15 years to 20 years	131,539	(35,124)	-	96,415	96,231	(54,789)	-	41,442
From 20 years to 25 years	5,106	(133,114)	-	(128,008)	27,367	(118,698)	-	(91,331)
Over 25 years	-	219,629	-	219,629	-	182,957	-	182,957
	224,292	103,537	295,577	623,406	219,606	104,641	287,712	611,959

7.a.7) Impairment losses

During the 2024 financial year, an impairment loss of Ū(2,864) thousand (Ū3,708 thousand reversal of impairment losses in the 2023 financial year) has been recognised, mainly from financial assets at fair value through other comprehensive income.

The movement in the expected loss for 2024 and 2023 for these financial assets and by stage is shown below:

		Ū thousand 2024
	Stage 1	Stage 2	Stage 3	Total
Financial assets at fair value through OCI
Debt securities
Opening balance	11,807	156	-	11,963
New financial assets	2,485	40	-	2,525
Provision (net) for change in contractual flows	-	-	-	-
Provision (net) for stage changes	40	(40)	-	-
Changes in value	222	(8)	-	214
Changes in the probability of non-compliance	282	26	-	308
Disposal/transfer of assets	(673)	(27)	-	(700)
Balance at the close of the year	14,163	147	-	14,310
Deposits with credit institutions
Opening balance	24	-	-	24
New financial assets	34	-	-	34
Provision (net) for change in contractual flows	-	-	-	-
Provision (net) for stage changes	-	-	-	-
Changes in value	1	-	-	1
Changes in the probability of non-compliance	(14)	-	-	(14)
Disposal/transfer of assets	(21)	-	-	(21)
Balance at the close of the year	24	-	-	24
Value as at 31 December 2024	14,187	147	-	14,334

	Ū thousand
	2023
	Stage 1	Stage 2	Stage 3	Total
Financial assets at fair value through OCI
Debt securities
Opening balance	15,917	15,862	-	31,779
New financial assets	2,202	639	-	2,841
Provision (net) for change in contractual flows	-	-	-	-
Provision (net) for stage changes	686	(686)	-	-
Changes in value	727	676	-	1,403
Changes in the probability of non-compliance	(6,844)	(1,686)	-	(8,530)
Disposal/transfer of assets	(881)	(14,649)	-	(15,530)
Balance at the close of the year	11,807	156	-	11,963
Deposits with credit institutions
Opening balance	27	-	-	27
New financial assets	1	-	-	1
Provision (net) for change in contractual flows	-	-	-	-
Provision (net) for stage changes	-	-	-	-
Changes in value	-	-	-	-
Changes in the probability of non-compliance	-	-	-	-
Disposal/transfer of assets	(3)	-	-	(3)
Balance at the close of the year	24	-	-	24
Value as at 31 December 2023	11,831	156	-	11,987

The value adjustment of financial assets measured at fair value through other comprehensive income does not reduce the carrying amount of these investments.

7.b) Receivables

A breakdown of the receivables from insurance, reinsurance and coinsurance contracts at 31 December 2024 and 2023, together with other receivables, is given below:

	Ū thousand
	31/12/2024	31/12/2023
Receivables from direct insurance, coinsurance and reinsurance transactions Other receivables	120,888 317,126	45,127 284,913
Total	438,014	330,040

As of 31 December 2024 we estimate that the fair value of loans does not differ significantly from the net carrying amount.

A breakdown of other credits in the consolidated balance sheet on 31 December 2024 and 2023 is given below:

	Ū thousand
Other credits:	31/12/2024	31/12/2023
Credits with Public Administrations	44,702	20,222
Other receivables at amortised cost	272,424	264,691
Commissions to collect for Credit Insurance information services	34,436	31,715
Agencies	7,614	8,047
Personnel	1,582	1,832
Balances of brokers with dubious collection and other dubious balances	6,703	6,031
Debtors by leases	1,075	1,194
Sundry debtors	229,040	222,708
Provision for impairment of rest of receivables	(8,026)	(6,836)
Total	317,126	284,913

As indicated in Note 3.b.3), the Group assesses the financial assets at their fair values, with the exception of certain loans and receivables that are valued at amortised cost. For the latter, its carrying amount is a fair approximation of its fair value.

7.c) Gains and losses on financial investments

The income and expenses of financial investments are presented below according to their classification in portfolio and type of asset for the 2024 and 2023 financial years:

(Ū thousand)	2024	2023
Net gains or losses on financial instruments mandatorily measured at fair value through profit or loss (*)	136,499	146,383
Equity Instruments	16,212	16,781
Debt securities	3,938	26,460
Deposits with credit institutions	1,366	10,353
Investments held for the benefit of policyholders who bear the investment risk	114,983	92,789
Net gains or losses on financial instruments measured at fair value with changes in OCI (*)	(7,061)	(10,038)
Debt securities	(7,061)	(10,038)
Deposits with credit institutions	-	-
Net gains or losses on financial instruments measured at amortised cost (*)	-	(6)
Loans	-	-
Other financial assets	-	(6)
Income from dividends	80,367	69,211
Investments held for the benefit of policyholders who bear the investment risk	-	-
Financial assets mandatorily measured at fair value through profit or loss	12,620	10,287
Financial assets measured at fair value through other comprehensive income	67,747	58,924
Income from interest	240,744	187,742
Investments held for the benefit of policyholders who bear the investment risk	-	-
Financial assets mandatorily measured at fair value through profit or loss	10,370	11,958
Financial assets measured at fair value through other comprehensive income	210,520	164,039
Financial assets measured at amortised cost	19,854	11,745
Net exchange rate differences	2,557	(3,286)
Impairment or reversal of impairment of financial assets measured at fair value through other comprehensive income	(2,347)	7,246
Impairment or reversal of impairment of financial assets carried at amortised cost	(517)	(3,538)
Total financial investments recognised in the profit and loss account	450,242	393,714

(*) Net gains on financial instruments for 2024 amount to a total of Ū127,586 thousand and include a loss of group companies amounting to Ū(1,852) thousand arising from the sale of Servicios Funerarios Zarautz, S.A.

The relationship between insurance financial income or expenses and the return on investment in financial assets underlying insurance and reinsurance contracts is presented below:

2024		Occident
	Life
(Ū thousand)	Direct holding contracts	Contracts without direct holding	Non-Life	Atradius	Total
Total net investment income / (expenses) associated with the			47,404	87,808	481,727
underlying assets recognised in PL	114,982 231,533
Total net investment income / (expenses) associated with the	1 135,484		141,995
underlying assets recognised in OCI				84,824	362,304
Financial income / (expenses) from insurance contracts issued	(125,388)	(166,349)	(14,956)	(55,761)	(362,454)
recognised in PL
Accredited interest	(2,109)	(163,421)	(14,956)	(7,726)	(188,212)
Effect of changes in interest rates and other financial	(1,146)	(2,928)	-	(44,321)	(48,395)
assumptions
Exchange rate income / (expenses)	-	-	-	(3,714)	(3,714)
Effects of the risk mitigation approach	(26,769)	-	-	-	(26,769)
Changes in the fair value of the underlying assets measured under VFA	(95,364)	-	-	-	(95,364)
Financial income / (expenses) from insurance contracts issued
recognised in OCI	-	(82,015)	(831)	(8,732)	(91,578)
Financial income / (expenses) from reinsurance contracts held
recognised in PL	-	-	1,486	12,742	14,228
Accredited interest	-	-	1,486	1,018	2,504
Effect of changes in interest rates and other financial
assumptions	-	-	-	13,039	13,039
Exchange rate income / (expenses)	-	-	-	(1,315)	(1,315)
Financial income / (expenses) from reinsurance contracts held
recognised in OCI	-	(113)	(604)	10,734	10,017

2023	Occident
	Life
(Ū thousand)	Direct holding contracts	Contracts without direct holding	Non-Life	Atradius	Total
Total net investment income / (expenses) associated with the underlying assets recognised in PL	92,672	236,690	40,282	58,011	427,655
Total net investment income / (expenses) associated with the underlying assets recognised in OCI	2	270,951	97,865	103,950	472,768
Financial income / (expenses) from insurance contracts issued recognised in PL	(92,860)	(173,249)	(8,989)	(45,352)	(320,450)
Accredited interest	(1,757)	(157,322)	(8,989)	(7,774)	(175,842)
Effect of changes in interest rates and other financial assumptions	12,548	(15,927)	-	(32,341)	(35,720)
Exchange rate income / (expenses)	-	-	-	(5,237)	(5,237)
Effects of the risk mitigation approach	(21,257)	-	-	-	(21,257)
Changes in the fair value of the underlying assets measured under VFA	(82,394)	-	-	-	(82,394)
Financial income / (expenses) from insurance contracts issued recognised in OCI	-	(166,165)	(21,765)	47,800	(140,130)
Financial income / (expenses) from reinsurance contracts held recognised in PL	-	20	1,067	10,454	11,541
Accredited interest	-	20	1,067	1,415	2,502
Effect of changes in interest rates and other financial assumptions	-	-	-	7,231	7,231
Exchange rate income / (expenses)	-	-	-	1,808	1,808
Financial income / (expenses) from reinsurance contracts held recognised in OCI	-	(4,300)	3,461	(2,295)	(3,134)

8. Investments in entities accounted for using the equity method (associates accounted for using the equity method)

The composition and movements during 2024 of those investments in the capital of companies over which the Group exercises significant influence is as follows:

	Ū thousand
Company	Balances at 31/12/2023	Changes in the scope	Increases due to non distributed profit for the year	Other measurement changes	Impairment losses	Balances at 31/12/2024
Asitur Asistencia, S.A.	8,292	-	1,435	12	-	9,739
Gesiuris Asset Management, S.G.I.I.C., S.A. (1)	4,028	-	82	13	-	4,123
Inversiones Credere, S.A.	-	-	-	-	-	-
CLAL Credit Insurance Ltd. (2) (5)	19,281	-	1,333	923	-	21,537
Compañía de Seguros de Crédito Continental S.A. (3) (5)	60,186	-	4,473	(3,246)	-	61,413
Credit Guarantee Insurance Corporation of Africa Limited (5)	20,813	-	332	416	-	21,561
Funerarias Gaditanas Asociadas, S.A. (4) (6)	3,657	-	10	(5)	-	3,662
Servicios Funerarios Costa de		-	1	11	-	13
Barcelona, S.L. (6)	1
Serfunle, S.A. (6)	2,818	-	146	(37)	-	2,927
TOTAL	119,076	-	7,812	(1,913)	-	124,975

(1) Gesiuris includes goodwill totalling Ū1,836 thousand.

(2) CLAL includes goodwill totalling Ū2,127 thousand.

(3) CSC Continental includes goodwill of Ū11,366 thousand.

(4) Fugasa includes goodwill totalling Ū2,203 thousand.

(5) Invested in through the company Atradius N.V.

(6) Invested in through Grupo Mémora.

These investments are accounted for using the equity method, using the best estimate available at the time of preparing the financial statements. Appendix II details the data on total assets, capital, reserves, profit or loss, dividends from this financial result, and the year's earned premiums net of reinsurance or otherwise standard earned Incomes.

As shown in Note 3.b.4, the Group has conducted the test for impairment on the companies included in the heading "holdings in entities measured using the equity method", considering the projections of future business of the companies and financial market parameters.

Dividend and cash flows are estimated using a projection period and a standardised period. The projection period is 10 years, where the projections of the first 1-3 years are based on quotes and/or financial forecasts. The remaining years are estimated using growth rates and ratios, which are considered the relevant figures for each of the estimated lines, which converge toward their standardised terminal value.

The discount rate used varies depending on the location and the associated company, using custom riskfree rates, Betas of the market and country risk premiums. The terminal value is calculated on the basis of the flow of dividends/free cash flows in the normalised period through a perpetuity that applies a growth rate of 3% and the specific discount rate. For those associated to the use of the measurement of discounted dividends, it is assumed that the profits, if available after complying with the capital requirements, are distributable dividends. The capital requirements are calculated on the basis of local targets for regulation and management.

The discount rates, before taxes, and the perpetual growth rates used in 2024 and 2023 have been as follows:

	Discount rate
Insurance entity CGU	31/12/2024	31/12/2023
CLAL - Israel	8.90%	8.80%
CSC Continental - Chile	10.30%	11.40%

	Perpetual growth rate
Insurance entity CGU	31/12/2024	31/12/2023
CLAL - Israel	3.00%	3.00%
CSC Continental - Chile	3.00%	3.00%

In parallel to this central measurement scenario, possible changes have been calculated in the main assumptions of the model and the CGU has been subject to a sensitivity analysis. The impacts regarding the value in use derived from this analysis are the following:

	Discount rate			Perpetual growth rate	Combined ratio		Solvency ratio
Insurance entity CGU	+ 50 bp	- 50 bp	+ 50 bp	- 50 bp	+ 50 bp	- 50 bp	+ 500 bp	- 500 bp
CLAL	-3.2%	3.7%	1.8%	-1.5%	-1.4%	1.4%	-1.1%	1.0%
CSC Continental	-5.4%	6.1%	3.2%	-2.8%	-1.8%	1.8%	-4.7%	4.3%

At 31 December 2024, based on the results of the impairment tests, the Group has not recognised any impairment in the consolidated income statement.

2023 movements are shown below:

	Ū thousand
Company	Balances at 31/12/2022	Changes to the scope	Increases due to non Other distributed measureme profit for the nt changes year		Impairment losses	Balances at 31/12/2023
Asitur Asistencia, S.A.	8,102	-	(19)	209	-	8,292
Calboquer, S.L.	75	(79)	4	-	-	-
Gesiuris Asset Management, S.G.I.I.C., S.A. (1)	3,901	-	41	86	-	4,028
Inversiones Credere, S.A.	-	-	-	-	-	-
CLAL Credit Insurance Ltd. (2) (5)	19,376	-	936	(1,031)	-	19,281
Compañía de Seguros de Crédito Continental S.A. (3) (5)	59,076	-	3,046	(1,936)	-	60,186
Credit Guarantee Insurance Corporation of Africa Limited (5)	21,738	-	1,599	(2,524)	-	20,813
Funerarias Gaditanas Asociadas, S.A. (4) (6)	-	3,668	(11)	-	-	3,657
Servicios Funerarios Costa de Barcelona, S.L. (6)	-	1	(4)	4	-	1
Serfunle, S.A. (6)	-	2,697	121	-	-	2,818
TOTAL	112,268	6,287	5,713	(5,192)	-	119,076

(1) Includes goodwill totalling Ū1,836 thousand.

(2) CLAL includes goodwill totalling Ū2,127 thousand.

(3) CSC Continental includes goodwill of Ū11,366 thousand.

(4) Fugasa includes goodwill totalling Ū2,203 thousand.

(5) Invested in through the company Atradius N.V.

(6) Invested in through Grupo Mémora.

At 31 December 2023, based on the results of the impairment tests, the Group has not recognised any impairment in the consolidated income statement.

9. Property, plant and equipment and investment property

9.a) Property, Plant and Equipment

The breakdown by type of items that make up the balance of this segment and sub segment of the consolidated balance sheet, on 31 December 2024 is as follows (in Ū thousand):

	Owner Occupied Property	Advances Owner Occupied Property	Furniture and installation s	Transport equipment	Data processing hardware	Improvem ents to owner occupied property	Rights of use	Other tangible fixed asset	Total
Cost on 1 January 2024	333,425	-	125,040	22,074	118,058	84,701	317,961		3,940 1,005,199
Accumulated Depreciation on 1 January 2024	(107,364)	-	(87,596)	(14,514)	(101,070)	(34,022)	(137,290)		(2,849) (484,705)
Impairment losses	(9,419)	-	(35)	-	-	-	-	-	(9,454)
Net carrying amount on 1 January 2024	216,642	-	37,409	7,560	16,988	50,679	180,671	1,091	511,040
Changes to the scope	5,085	-	1,476	533	16	-	-	96	7,206
Investments or Additions	131,571	250	23,070	2,256	29,720	25,932	34,468	1,481	248,748
Reclassifications and transfers (Note 9.b)	(116,092)	-	-	-	-	-	-	-	(116,092)
Sales and Withdrawals	(4,090)	-	(12,841)	(2,091)	(13,426)	(2,954)	(12,677)	(39)	(48,118)
Effect of changes on the exchange rates	(219)	-	648	-	864	-	1,401	-	2,694
Changes to the scope	(2,027)	-	(1,331)	(465)	(16)	-	-	(78)	(3,917)
Depreciation for the year	(5,242)	-	(5,890)	(1,456)	(9,020)	(7,288)	(5,814)	(139)	(34,849)
Reclassifications and transfers of the depreciation (Nota 9.b)	43,484	-	-	-	-	-	-	-	43,484
Withdrawals from Depreciation	1,190	-	8,084	1,499	9,519	2,462	6,240	39	29,033
Effect of changes on the exchange rates	26	-	(451)	-	(791)	-	(558)	-	(1,774)
Changes to the scope	-	-	-	-	-	-	-	-	-
Impairment losses	5,406	-	-	-	-	-	-	-	5,406
Reclassifications and transfers of the impairment (Note 9.b)	(54)	-	-	-	-	-	-	-	(54)
Impairment withdrawals	-	-	-	-	-	-	-	-	-
Net carrying amount on 31 December 2024	275,680	250	50,174	7,836	33,854	68,831	203,731	2,451	642,807

Breakdown of the net carrying amount on 31 December 2024 (in Ū thousand):

	Owner Occupied Property	Advances Owner Occupied Property	Furniture and installation s	Transport equipment	Data processing hardware	Improve ments to owner occupied property	Rights of use	Other tangible fixed asset	Total
Cost on 31 December 2024	349,680	250	137,393	22,772	135,232	107,679	341,153	5,478	1,099,637
Accumulated Depreciation on 31 December 2024	(69,933)	-	(87,184)	(14,936)	(101,378)	(38,848)	(137,422)	(3,027)	(452,728)
Impairment losses	(4,067)	-	(35)	-	-	-	-	-	(4,102)

The movement and detail for 2023 are as follows (in Ū thousand):

	Owner Occupied Property	Advances Owner Occupied Property	Furniture and installation s	Transport equipment	Data processing hardware	Improvem ents to owner occupied property	Rights of use	Other tangible fixed asset	Total
Cost on 1 January 2023	270,059	-	115,290	7,428	107,281	93,062	227,382	81	820,583
Accumulated Depreciation on 1 January 2023	(80,129)	-	(90,082)	(3,953)	(92,557)	(48,855)	(109,188)		- (424,764)
Impairment losses	(6,905)	-	-	-	-	-	-	-	(6,905)
Net carrying amount on 1 January 2023	183,025	-	25,208	3,475	14,724	44,207	118,194	81	388,914
Changes to the scope Investments or Additions	64,844 9,570	68 -	29,921 13,331	15,229 1,329	6,699 10,023	- 13,325	81,426 30,684	2,778 1,081	200,965 79,343
Reclassifications and transfers (Note 9.b)	(4,672)	-	(3,427)	-	6	3,432	-	-	(4,661)
Sales and Withdrawals	(6,543)	(68)	(30,360)	(1,912)	(6,232)	(25,118)	(21,012)	-	(91,245)
Effect of changes on the exchange rates	167	-	285	-	281	-	(519)	-	214
Changes to the scope	(15,609)	-	(22,238)	(10,328)	(5,725)	-	(19,394)	(2,820)	(76,114)
Depreciation for the year	(15,565)	-	(7,116)	(1,818)	(7,688)	(7,598)	(30,048)	(29)	(69,862)
Reclassifications and transfers of the depreciation (Nota 9.b)	2,287	-	2,565	-	(6)	(2,565)	-	-	2,281
Withdrawals from Depreciation	1,681	-	29,437	1,585	5,169	24,996	20,563	-	83,431
Effect of changes on the exchange rates	(29)	-	(162)	-	(263)	-	777	-	323
Changes to the scope	(3,328)	-	(62)	-	-	-	-	-	(3,390)
Impairment losses	814	-	27	-	-	-	-	-	841
Reclassifications and transfers of the impairment (Note 9.a)	-	-	-	-	-	-	-	-	-
Impairment withdrawals	-	-	-	-	-	-	-	-	-
Net carrying amount on 31 December 2023	216,642	-	37,409	7,560	16,988	50,679	180,671	1,091	511,040

Breakdown of the net carrying amount on 31 December 2023 (in Ū thousand):

	Owner Occupied Property	Advances Owner Occupied Property	Furniture and installation s	Transport equipment	Data processing hardware	Improvem ents to owner occupied property	Rights of use	Other tangible fixed asset	Total
Cost on 31 December 2023	333,425	-	125,040	22,074	118,058	84,701	317,961	3,940	1,005,199
Accumulated Depreciation on 31 December 2023	(107,364)	-	(87,596)	(14,514)	(101,070)	(34,022)	(137,290)		(2,849) (484,705)
Impairment losses	(9,419)	-	(35)	-	-	-	-	-	(9,454)

During the first half of 2024, GCO acquired Peñalvento (see note 5.a), the developer and owner of the building located at Méndez Álvaro 31, (Madrid), which will house the Group's offices in Madrid. The acquisition of the shares was carried out by GCO Activos Inmobiliarios, a wholly-owned subsidiary of GCO, in compliance with the sale and purchase agreement signed with Colonial. With this acquisition, the aforementioned building has become part of the Group's assets for an amount of Ū120,294 thousand.

At 31 December 2024 and 2023, the Group has full title to the properties for its own use, none of which are pledged as security of any kind.

The Group has no significant commitments to acquire new properties.

At year-end 2024, all the Group's property, plant and equipment were used directly in operations.

During the 2024 financial year there were no impairment losses of significant amounts on property, plant and equipment (in the 2023 financial year there were no impairment losses of significant amounts either).

The net value of property for owner-occupied located abroad amounts to Ū22,354 thousand as at 31 December 2024 (Ū22,309 thousand as at 31 December 2023).

During 2024, profits were obtained from own-occupied property amounting to Ū471 thousand.

The market value at 31 December 2024 and 2023 of the Group's owner-occupied properties was as follows (in Ū thousand):

	Owner-Occupied Property
	Occident	Atradius Mémora Total
Market value on 31/12/2024	227,330	48,883	75,103	351,316
Market value on 31/12/2023	197,541	105,541	69,025	372,107

The capital gains associated with owner-occupied property amount to Ū75,386 thousand in the 2024 financial year (Ū155,465 thousand in the 2023 financial year).

The market value of the owner-occupied property has been obtained according to the methodology described in Note 3.c).

Leases: Rights of use assets

Right-of-use assets relate 95% to buildings (96% in 2023) and 5% to cars (4% in 2023) under a number of operating leases.

The leases at 31 December 2024 and 2023 for which the Group is the lessee are (in Ū Thousand):

	Year 2024	Year 2023
Lease liabilities (see Note 13.b)	296,145	270,608
Amounts recognised in the consolidated income statement:
Amortisation expense for rights of use	37,582	34,384
Interest expense on lease liabilities	11,985	11,127
(minus) Rent expense (*)	(49,075)	(39,459)
Loss from rights of use	354	-
Gross profit impact	846	6,052
Fiscal impact	(208)	(1,509)
Net profit impact	638	4,543

(*) Cash outflows for the year

The Group has excluded those contracts with a term of 12 months or less from the general treatment of leases, as well as those contracts where the value of the leased item is Ū5,000 or less. Lease expenses for these exclusions have been recognised in the Group's income statement and amounted to Ū 3,334 thousand in 2024 (Ū2,478 thousand in 2023).

9.b) Investment property

The breakdown by type of items that make up the balance of this segment and sub segment of the condensed consolidated income statement, on 31 December 2024 is as follows (in Ū thousand):

	Buildings for third party use	Investment property advances	Total investment properties
Cost on 1 January 2024	938,170	2,826	940,996
Accumulated Depreciation on 1 January 2024	(201,194)	-	(201,194)
Impairment losses	(7,935)	-	(7,935)
Net carrying amount on 1 January 2024	729,041	2,826	731,867
Changes to the scope	-	-	-
Investments or Additions	11,632	12,084	23,716
Reclassifications and transfers (Note 9.a)	116,092	-	116,092
Sales and Withdrawals	(17,971)	(14,910)	(32,881)
Effect of changes on the exchange rates	(94)	-	(94)
Changes to the scope	-	-	-
Depreciation for the year	(15,078)	-	(15,078)
Reclassifications and transfers of the amortisation			(43,484)
(Note 9.a)	(43,484)	-
Withdrawals from Depreciation	7,565	-	7,565
Effect of changes on the exchange rates	10	-	10
Changes to the scope	-	-	-
Impairment losses	2,310	-	2,310
Reclassifications and transfers of the impairment (Note 9.a)	54	-	54
Impairment withdrawals	-	-	-
Net carrying amount on 31 December 2024	790,077	-	790,077

Breakdown of the net carrying amount on 31 December 2024 (in Ū thousand):

	Buildings for third party use	Investment property advances	Total investment properties
Cost on 31 December 2024	1,047,829	-	1,047,829
Accumulated Depreciation on 31 December 2024	(252,181)	-	(252,181)
Impairment losses	(5,571)	-	(5,571)

The movement and detail for 2023 are as follows (in Ū thousand):

	Buildings for third party use	Investment property advances	Total investment properties
Cost on 1 January 2023	927,868	1,753	929,621
Accumulated Depreciation on 1 January 2023	(174,114)	-	(174,114)
Impairment losses	(6,226)	-	(6,226)
Net carrying amount on 1 January 2023	747,528	1,753	749,281
Changes to the scope	-	-	-
Investments or Additions	9,775	3,322	13,097
Reclassifications and transfers (Note 9.a)	6,910	(2,249)	4,661
Sales and Withdrawals	(6,455)	-	(6,455)
Effect of changes on the exchange rates	72	-	72
Changes to the scope	-	-	-
Depreciation for the year	(27,827)	-	(27,827)
Reclassifications and transfers of the amortisation
(Note 9.a)	(2,281)	-	(2,281)
Withdrawals from Depreciation	3,037	-	3,037
Effect of changes on the exchange rates	(9)	-	(9)
Changes to the scope	-	-	-
Impairment losses	(1,709)	-	(1,709)
Reclassifications and transfers of the impairment (Note 9.a)	-	-	-
Impairment withdrawals	-	-	-
Net carrying amount on 31 December 2023	729,041	2,826	731,867

Breakdown of the net carrying amount on 31 December 2023 (in Ū thousand):
	Buildings for third party use	Investment property advances	Total investment properties
Cost on 31 December 2023	938,170	2,826	940,996
Accumulated Depreciation on 31 December 2023	(201,194)	-	(201,194)
Impairment losses	(7,935)	-	(7,935)

In the last quarter of 2024, GCO sold a building at street Cedaceros 9 in Madrid for Ū36,920 thousand.

During the 2024 financial year, other divestments in real estate assets of smaller amounts have also been carried out, mainly offices in Sevilla - Avenida Eduardo Dato, for an amount of Ū1,150 thousand, Madrid - Paseo de la Habana for an amount of Ū1,300 thousand, Valencia - Pascual y Genis for an amount of Ū1,150 thousand, Valencia - Jovellanos for an amount of Ū1,205 thousand and Barcelona - Balmes for an amount of Ū1,450 thousand.

The Group has full title to its investment property and has no commitments in addition to those recorded in its consolidated financial statements for the acquisition of new property, plant and equipment.

During the 2024 financial year, an impairment reversal of investment property amounting to Ū2,310 thousand was recognised (in the 2023 financial year impairment losses of investment property amounting to Ū 1,709 thousand were recognised).

The most significant investments under this heading of the consolidated balance sheet relate to commercial property, mainly office buildings, which the Group operates on a lease basis.

At year-end 2024 there were no restrictions of any kind on the execution of further property investments, on the collection of income from investment property or in relation to the proceeds of disposals.

During the 2024 financial year, gains on realisation of investment property amounting to Ū32,972 thousand were realised.

The market value of the Group's investment property at 31 December 2024 and 2023 was as follows (in Ū thousand):

	Property investments, third party use
	Occident	Atradius	Mémora	Total
Market value on 31/12/2024	1,235,030	24,243	1,062	1,260,335
Market value on 31/12/2023	1,116,393	24,576	992	1,141,961

Capital gains associated with investment property amount to Ū470,258 thousand in 2024 financial year (Ū410,094 thousand in 2023).

The market value of the third-party property has been obtained according to the methodology described in Note 3.d).

The income from investment property rentals that generated income from rentals and the direct operating expenses related to property investments (under operating leases or otherwise) recorded in the consolidated profit and loss account for 2024 and 2023 are listed below:

Ū thousand	Ceded in operative lease		Property investments
	Year 2024	Year 2023	Year 2024	Year 2023
Rental income	53,999	52,668	-	-
Direct operating expenses	17,783	16,007	1,307	3,651

As of 31 December, the minimum future income for the last two years of non-cancellable operating leases are as follows:

	Ū thousand
Future operating lease receipts	31/12/2024	31/12/2023
Less than 1 year	58,920	52,598
Over one year but less than five	142,205	140,168
Over five years	96,467	113,154
Total	297,592	305,920

The Group has not taken into account income from contingent charges for 2024 and 2023.

Most leases have a duration of between 5 and 10 years and are renewable.

10. Intangible fixed assets

Activity of this balance sheet item in 2024 and 2023 was as follows (in Ū thousand):

			Other intangible assets
	Goodwill	Policy portfolio acquisition costs	Internally generated IT applications	IT Applications acquired	Administrative concessions	Brands	Distribution network	Portfolio policies	Others	Total other intangible assets
Cost on 1 January 2023	787,222	218	314,189	150,982	-	13,650	16,140	33,000	452	528,413
Accumulated Depreciation on 1 January 2023	-	(49)	(128,661)	(129,886)	-	(1,665)	(12,105)	(12,925)	(389)	(285,631)
Impairment loss on 1 January 2023	(110)	-	(95,025)	(17)	-	(11,985)	-	-	-	(107,027)
Net carrying amount on 1 January 2023	787,112	169	90,503	21,079	-	-	4,035	20,075	63	135,755
Changes to the scope	380,390	-	-	21,948	305,848	136,673	-	-	2,493	466,962
Additions	-	-	16,895	13,491	14,085	-	-	-	-	44,471
Reclassifications and transfers	-	-	-	12	-	-	-	-	-	12
Withdrawals	-	-	(4,240)	(19,226)	-	(18,654)	-	-	(29)	(42,149)
Effect of changes on the exchange rates	(6)	-	2,176	400	-	-	-	-	-	2,576
Changes to the scope	-	-	-	(17,262)	(95,959)	(16,505)	-	-	(2,051)	(131,777)
Depreciation for the year	-	(24)	(6,812)	(11,214)	(11,504)	-	(1,614)	(3,300)	(152)	(34,596)
Reclassifications and transfers	-	-	-	426	-	-	-	-	-	426
Withdrawals in amortisation	-	-	2,012	13,411	-	2,955	-	-	-	18,378
Effect of changes on the exchange rates	-	-	(1,647)	(396)	-	-	-	-	-	(2,043)
Changes to the scope	-	-	-	-	(15,635)	(3,170)	-	-	-	(18,805)
Impairment losses	-	-	(27,489)	17	-	11,985	-	-	-	(15,487)
Cost on 31 December 2023	1,167,606	218	329,020	167,607	319,933	131,669	16,140	33,000	2,916	1,000,285
Accumulated Depreciation on 31 December 2023	-	(73)	(135,108)	(144,921)	(107,463)	(15,215)	(13,719)	(16,225)	(2,592)	(435,243)
Impairment loss on 31 December 2023	(110)	-	(122,514)	-	(15,635)	(3,170)	-	-	-	(141,319)
Net carrying amount on 31 December 2023	1,167,496	145	71,398	22,686	196,835	113,284	2,421	16,775	324	423,723
Changes to the scope	12,225	-	-	-	-	-	-	-	-	-
Additions	-	-	17,391	13,725	2,389	5,003	-	-	1,091	39,599
Reclassifications and transfers	-	-	-	-	-	-	-	-	-	-
Withdrawals	-	-	-	(11,116)	(112)	-	-	-	(850)	(12,078)
Effect of changes on the exchange rates	(14)	-	5,546	974	-	-	-	-	-	6,520
Changes to the scope	-	-	-	-	-	-	-	-	-	-
Depreciation for the year	-	(145)	(762)	(7,597)	(8,612)	(1,289)	(1,614)	(3,300)	(205)	(23,379)
Reclassifications and transfers	-	-	-	-	-	-	-	-	-	-
Withdrawals in amortisation	-	-	-	3,998	88	-	-	-	-	4,086
Effect of changes on the exchange rates	-	-	(4,347)	(978)	-	-	-	-	-	(5,325)
Changes to the scope	-	-	-	-	-	-	-	-	-	-
Impairment losses	-	-	(16,535)	-	125	-	-	-	-	(16,410)
Cost on 31 December 2024	1,179,817	218	351,957	171,190	322,210	136,672	16,140	33,000	3,157	1,034,326
Accumulated Depreciation on 31 December 2024	-	(218)	(140,217)	(149,498)	(115,987)	(16,504)	(15,333)	(19,525)	(2,797)	(459,861)
Impairment loss on 31 December 2024	(110)	-	(139,049)	-	(15,510)	(3,170)	-	-	-	(157,729)
Net carrying amount on 31 December 2024	1,179,707	-	72,691	21,692	190,713	116,998	807	13,475	360	416,736

Key information relating to these intangible assets is given below:

10.a) Goodwill

The breakdown of the "Goodwill" account in the consolidated balance sheet, according to the cash generating units (CGUs) from which it arose, is as follows:

	Ū thousand
CGU	31/12/2024	31/12/2023
Fully consolidated companies:
Occident Seguros (*)	278,882	278,882
Atradius N.V.	462,436	462,245
Mémora (**)	434,894	422,874
Others	3,495	3,495
Gross Total	1,179,707	1,167,496
Less: Impairment losses	-	-
Net carrying amount	1,179,707	1,167,496

(*) Corresponds to the goodwill of Occident Seguros and Nortehispana which, following their merger, are integrated into Occident Seguros (see Note 5.f).

(**) The increase in the goodwill of Mémora is mainly due to the acquisition of Tanatorio Palencia (see Note 5.b).

The Group, as defined by IAS 36, considers that Mémora is defined as a CGU given that it is the smallest identifiable group of assets that generates cash input independent of other cash flows arising from other assets or groups of assets. In this regard, management controls operations on a unified basis and makes decisions to continue, dispose or otherwise dispose of the assets and operations of the business. All information relevant to management is generated on an aggregated basis for the Mémora business line. Management approves the estimates of flows and the medium-term plans jointly without traceability for a smaller group of assets.

As indicated in Note 3.e.1, at year-end we assess whether any goodwill show impairment losses based on the calculation of value in use of the related CGU.

The financial projections used in the assessment exercises cover a period of 3 years and are based on business plans previously approved by the Group's directors. From the fourth year, growth is expected in accordance with the perpetual rate.

In the case of goodwill for Atradius N.V., the projection of cash flows has been made for a period of 10 years so as to allow the model to reflect a full business cycle. This extended period is necessary to increase the reliability of projections, given the close relationship between the economic cycle phase and changes in the cash flows from the Atradius. The first three years are based on financial budgets and/or forecasts. The remaining years are estimated using normalised ratios and growth rates.

The key assumptions, on which the projections have been based, used for the determination of the value in use of Occident Seguros, Atradius N.V. and Mémora are detailed below:

Key assumptions used in the calculations for value in use:

	Occident Seguros	Atradius N.V.	Mémora
Key assumptions	Projection period	Projection period	Projection period
Basis for determining the value(s) assigned to each key assumption	-The financial projections cover a 3-year period, from 2025 to 2027, based on the business plans approved by the Group's Directors.	-The financial projections approved by the Group's Directors cover a 3-year period. The projection period has been extended to 10 years, from 2028 to 2034, as this is a cyclical business and the extension of the projection period allows for a complete economic cycle to be taken into account.	-The financial projections cover a 3-year period, from 2025 to 2027, based on the business plans approved by the Group's Directors.
Key assumptions	Premium income	Premium income	Income
Basis for determining the value(s) assigned to each key assumption	-The Group's Directors consider an income growth until 2027 based on their historical experience in their business plan. -Income growth in perpetuity is based on macroeconomic expectations, as well as estimates from market analysts and other comparable entities.	-The Group's Directors consider in their business plan income growth based on historical experience to 2027. In 2028, negative income growth is projected to be in line with that observed in 2020. For the 2029-2033 Period, a convergence of income growth to levels in line with the perpetual growth rate in 2034 has been taken into account. - Growth is considered to be in line with the growth expectations of market analysts and other comparable entities in order to calculate terminal value income.	-The business plan estimates income growth in line with the growth in the funeral business plus the CPI estimated by the International Monetary Fund. -Growth in line with macroeconomic expectations and the expected growth of deaths are taken into account in order to calculate the terminal value.
Key assumptions	Claims	Claims	EBITDA margin
Basis for determining the value(s) assigned to each key assumption	- In the 2025 to 2027 period, the business plan projects progressive improvements in the claims ratio based on the Group's historical experience.	-In the 2025 to 2027 period an increase in claims has been estimated. In 2028 an increase in the claims ratio in line with that observed in 2020 has been taken into account. Subsequently, a stepwise reduction in the claims ratio has been taken into account until 2034. -The loss ratio considered in perpetuity reflects the Group's historical experience by reflecting the historical average of a complete economic cycle.	-A progressive improvement of the EBITDA margin is considered for the period projected in the business plan on the basis of internal efficiency improvements. -The terminal value calculated for its EBITDA margin in perpetuity reflects the past experience of the Group's Directors taking into account a historical average.
Key assumptions	Operating expenses	Operating expenses
Basis for determining the value(s) assigned to each key assumption	-The business plan estimates an improvement in operating expenses based on a redistribution of the internal distribution network initiated in recent years within the Group.	-The evolution of operating expenses estimated in the business plan for 2025 to 2027 is based on the Group's historical experience. In the 2028-2034 period a slight increase in operating expenses has been considered.

The discount rates, before taxes, used in the financial year 2024 for updating the cash flow projections obtained from the projection of income and expenses carried out according to the criteria mentioned above, have been as follows:

	Discount rate
CGU	31/12/2024	31/12/2023
Occident Seguros	9.50%	9.90%
Atradius N.V.	9.50%	9.50%
Mémora	6.80%	6.60%

The inputs used in the calculation of the discount rate have been the risk-free rate, the risk premium of the country or countries where the CGU develops its activity, the market risk premium and leveraged beta, in accordance with each of the CGUs being measured.

With regard to the perpetual growth rates used beyond the period covered in the financial projections, the following are the details of the CGUs:

	Perpetual growth rate
CGU	31/12/2024	31/12/2023
Occident Seguros	1.00%	1.00%
Atradius N.V.	1.00%	1.00%
Mémora	2.40%	2.60%

The growth rate has been substantiated, generally, in the analysis of real GDP growth in the country in which each CGU develops its business, considering both the history and the forecast estimated, except for the CGU of Mémora where, due to the specificities of the business, obtaining this rate has been based on the evolution of the CPI and the anticipated national growth in deaths. To obtain both rates, wherever possible, the discount and perpetual growth rates used in the valuation of comparable companies in business, dimension and geographic location have been compared, so that the values obtained are close on average to those used in similar companies.

Two different methodologies have been used to estimate the terminal value, depending on the type of business of the CGU: for Mémora the terminal value has been estimated based on the Gordon-Shapiro formula, while in the case of the insurance business (for both Occident and Atradius) the methodology has been based on the normalised distributable dividend perpetuity income formula, this calculation methodology having been compared with other similar and generally accepted methodologies such as Gordon-Shapiro and resulting in non-significant differences.

As for the calculation of the perpetual income of the normalized distributable dividend, it is assumed that the dividend of the last year of projection increases according to the growth rate in perpetuity ("g"). With regards to the Gordon- Saphiro model, the normalised flow has been calculated by adjusting the free flow of the last year projected by Management, assuming an increase of income in accordance with the perpetual growth rate and a normalised EBITDA margin in accordance with the evolution of the CGU in question.

The excess capital available over the capital required by Solvency II is positioned at 175% for Atradius N.V., and at 150% for the units located in Spain.

In parallel to this central measurement scenario, possible changes have been calculated in the main assumptions of the model and the CGU has been subject to a sensitivity analysis. The impacts regarding the value in use derived from this analysis are the following:

	Discount rate		Perpetual growth rate		Combined ratio		Solvency ratio
Insurance entity CGU	+ 50 bp	- 50 bp	+ 50 bp	- 50 bp	+ 50 bp	- 50 bp	+ 1,000 bp	- 1,000 bp
Occident Seguros	-5.1%	5.8%	4.5%	-4.0%	-4.0%	4.0%	-5.1%	5.1%
Atradius N.V.	-4.3%	4.9%	2.5%	-2.3%	-2.2%	2.2%	-5.0%	5.0%

	Discount rate		Perpetual growth rate		EBIDTA
Funeral CGU's	+ 50 bp	- 50 bp	+ 50 bp	- 50 bp	+ 50 bp	- 50 bp
Mémora	-13.4%	16.9%	16.5%	-13.1%	3.5%	-3.5%

At 31 December 2024 and 2023, according to the estimates, projections and independent expert reports available to the Directors and Management of the parent company, the projected revenue and cash flows attributable to the Group of these companies considered as CGUs support the value of the net assets recognised and therefore the Group has not recognised any impairment losses affecting goodwill on consolidation.

Likewise, no sensitivity analysis mentioned above would imply that the book value of the units would exceeds the recoverable amount, with the exception of Mémora. In this CGU, the reduction in recoverable amount in the scenarios analysed would not have a significant effect on the Group's equity and financial position.

10.b) Other intangible assets

10.b.1) IT applications

These intangible assets have a defined useful life, in accordance with their nature, and their amortisation as set criteria have been in the accounting policies (see Note 3.e.3).

Investments in intangible assets whose rights may be exercised outside Spanish territory or are related to investments located outside Spanish territory have a gross carrying amount of Ū393,815 thousand and an accumulated amortisation of Ū320,410 thousand.

The Group measures all capitalized software to determine whether the capitalization criteria are met (see Note 3.e.3). Based on this measurement, the Group has recognised impairment losses on internally generated software from Atradius N.V. amounting to Ū16,535 thousand (Ū27,472 thousand in 2023).

10.b.2) Administrative concessions

On 9 February 2023, as a result of the acquisition of Grupo Mémora, the Group incorporated an intangible asset amounting to Ū26,611 thousand for the difference between the carrying amount of the administrative concessions and their fair value. This fair value was determined using the Multi-period Excess Earnings Method (MEEM), with the support of an independent expert. The useful life considered to estimate the fair value of the different administrative concessions corresponds to the remaining life of the contracts associated with each concession. The average remaining life of the main concession contracts is 20 years.

10.b.3) Brand

On 9 February 2023, as a result of the acquisition of Grupo Mémora, the Group incorporated an intangible asset for the difference between the carrying amount of Grupo Mémora brands ("Mémora", "Serveis Funeraris de Barcelona" and "Servilusa") and their fair value. This fair value was determined using the 'Royalty Relief Method' (RRM), with the support of an independent expert, determining a royalty rate of 3.5% applied to projected income. In the measurement process an indefinite useful life was established for Grupo Mémora brands.

10.b.4) Distribution network

As part of the process of allocating the acquisition cost of Plus Ultra, the Group incorporated an intangible asset to its balance sheet during the year 2015, at fair value, corresponding to the network of intermediaries of "Plus Ultra". Said fair value was determined based on the "Method of Multi-period excess profits (MEEM)" based on the excess profit from the contributory assets required for the operation of the business.

The estimated useful life for the network of mediators was initially determined at twenty years according to the type of mediators and their historical age. In the 2021 financial year, this useful life was re-estimated to ten years considering the legally established terms.

10.b.5) Portfolio policies

In the business combination of Seguros de Vida y Pensiones Antares, S.A. (merged with Occident), the Group included an intangible asset amounting to Ū33,000 thousand for the fair value of the collaboration agreement with Telefónica. This fair value determined using the Multi-period Excess Earnings Method (MEEM), with the support of an independent expert, assigning a useful life of ten years, as established in the acquisition contract.

The Group has no further commitments to those recorded in its consolidated financial statements for the acquisition of intangible assets. At 2024 year end, all intangible assets of the Group are directly affected by the operation.

11. Tax position

11.a) Tax consolidation regime

From the 2002 financial year, part of the companies included in the trade consolidation perimeter with corporate address in Spain pay taxes, for the purposes of corporation tax, in accordance with the special regime of tax consolidation anticipated by Chapter VI of Title VII of the Law 27/2014, of 27 November, on Corporation Tax (hereinafter "LIS") applicable in common territory.

In 2024, the tax consolidation group number 173/01 consists of the company Grupo Catalana Occidente, S.A. (as parent company) and the following subsidiaries: (i) Atradius Collections, S.L.; (ii) Atradius Crédito y Caución S.A. de Seguros y Reaseguros ("ACyC"); (iii) Atradius Information Services BV Sucursal en España; (iv) Atradius Participations Holding, S.L., Sociedad Unipersonal; (v) B2B SAFE, S.A.; (vi) Bilbao Vida y Gestores Financieros, S.A.U.; (vii) Calboquer, S.L.U.; (viii) Cosalud Servicios, S.A.U.; (ix) Eurofunerarias, S.A.; (x) Funcantabria Servicios Funerarios, S.L.U.; (xi) Funeraria Merino Díez, S.L.U.; (xii) Funeraria Nuestra Señora de los Remedios, S.L.U.; (xiii) GCO Ventures, S.L.U.; (xiv) Grupo Catalana Occidente Activos Inmobiliarios, S.L.U.; (xv) Grupo Catalana Occidente Gestión de Activos, S.A.U. S.G.I.I.C.; (xvi) Iberinform Internacional, S.A.U.; (xvii) Iberinmobiliaria, S.A.U.; (xviii) Mémora Servicios Funerarios, S.L.U.; (xix) Mémora Serveis Funeraris del Camp, S.L.U.; (xx) Mémora Servicios Funerarios Internacionales, S.L.U.; (xxi) Nortehispana, de Seguros y Reaseguros, S.A.U.; (xxii) Nortehispana Mediación, Agencia de Seguros, S.A.U.; (xxiii) Occident Direct, S.L.U.; (xxiv) Occident GCO Capital, Agencia de Valores, S.A.U.; (xxv) Occident GCO Mediadores, Sociedad de Agencia de Seguros, S.A.U.; (xxvi) Occident GCO S.A.U. de Seguros y Reaseguros; (xxvii) Occident Pensiones, E.G.F.P., S.A.U.; (xxviii) Olympia Mediación, Agencia de Seguros Exclusiva, S.L.U.; (xxix); Pompas Fúnebres Mediterráneas, S.L.; (xxx) Portal Funerario, S.L.U.; (xxxi) Serveis Funeraris de Barcelona, S.A.; (xxxii) Servicios Funerarios de Guadalajara Nuestra Señora La Antigua, S.A.; (xxxiii) Servicios Funerarios del Torrero, S.A. (xxxiv) Servicios Funerarios Montero, S.A.U.; (xxxv) Servicios Funerarios y Tanatorios de Soria, S.L.U.; (xxxvi) Sociedad Gestión Catalana Occidente, S.A.U.; (xxxvii) Taurus Bidco, S.L.U.; and (xxxviii) Transports Sanitaris Partes, S.L.U.

Since 2016, the taxable income obtained by this tax consolidation group under tax legislation has been subject to a tax rate of 25%.

On the other hand, the company Asistea Servicios Integrales S.L.U. is the representative of the tax consolidation group number 0497B, which is subject to the tax regulations of the historical territory of Vizcaya and whose subsidiaries in 2024 are: (i) Funerarias Bilbaína y La Auxiliadora, S.L.U.; (ii) Landarri, S.L.U.; (iii) Mediagen, S.L.U.; (iv) Occident Hipotecaria, S.A.U., E.F.C, (v) S. Órbita Sociedad Agencia de Seguros, S.A.U.; (vi) Servicios Funerarios Baztan Bidasoa, S.L.; (vii) Tanatorio del Bidasoa, S.A.; (viii) Tanatorio Donostialdea, S.A.U.; and (ix) Zentarri, S.A.U.; and (viii) Zentarri, S.A.U. and (ix) Zentolen Berri, S.A.U. The taxable income obtained by this tax consolidation group, in accordance with provincial tax legislation, is subject to a tax rate of 24%.

The other companies with tax domicile in Spain that form part of the trade consolidation perimeter are subject to the general tax rates established in the regulations applicable in common territory or local territory, as appropriate. As an exception, Hercasol, S.A. SICAV is subject to a tax rate of 1% as it is an open-ended investment company that meets the requirements of Chapter V of Title VII of the LIS.

Atradius N.V., its subsidiaries and branches that are located outside Spanish territory apply the various tax regimes in force in the various countries in which they reside or are established, with the effective tax rate being 26.21% for the 2024 financial year.

From the year 2014, part of the companies included in the trade consolidation perimeter with tax address in common territory pay taxes, for the purposes of Value Added Tax, in conformance with the Special Regime for the Group of Entities anticipated by Chapter IX of the Title IX of Law 37/1992 on Value Added Tax.

In 2024, the group of entities VAT number 002/14 (hereinafter, VAT Tax Group) is formed by Grupo Catalana Occidente, S.A. (as parent company) and subsidiaries: (i) Cosalud Servicios, S.A.U.; (ii) Grupo Catalana Occidente Contact Center, A.I.E.; (iii) Grupo Catalana Occidente Gestión de Activos, S.A.U. S.G.I.I.C.; (iv) Grupo Catalana Occidente Tecnología y Servicios, A.I.E.; (v) Nortehispana, de Seguros y Reaseguros, S.A.U.; (vi) Occident GCO Capital, Agencia de Valores, S.A.U.; (vii) Occident GCO S.A.U. de Seguros y Reaseguros; and (viii) Prepersa, de Peritación de Seguros y Prevención, A.I.E.

Pillar Two

On 20 December 2024, Law 7/2024 of 20 December 2024 was approved in Spain, establishing, among others, a supplementary tax to guarantee an overall minimum level of taxation for multinational groups and large domestic groups. The aforementioned Law complies with the obligation to transpose Council Directive (EU) 2022/2523 of 15 December 2022, which transposes the rules of Pillar Two of the OECD's Inclusive Framework to the European Union.

The aforementioned Directive (EU) 2022/2523, in turn, is based on the so-called Pillar Two of the BEPS ('Base Erosion Profit Shifting') initiative of the Organisation for Economic Cooperation and Development, whose objective was to achieve the establishment of a global minimum taxation of 15% for multinational groups and which, to achieve this, adopted a set of rules (Model Rules) to calculate the effective taxation and capture, where appropriate, the tax under-taxation up to the minimum of 15%.

The aforementioned Law has been approved in Spain with effect for tax periods beginning on or after 31 December 2023. In the case of the Group, with effect from 2024, and structures the new Complementary Tax as a separate tax figure outside the corporate income tax regulations. Likewise, in other jurisdictions where the Group operates, the rules of the new global minimum taxation have also been approved at the end of the current financial year, including most of the Member States of the European Union, as well as Switzerland, the United Kingdom and Australia. In addition, they are expected to come into force in 2025 in other jurisdictions where the Group is present, Singapore, Hong Kong and Poland.

In compliance with these new regulations, the Group has calculated at year-end 2024 the impact of the Complementary Tax based on the Transitional Safe Harbour analysis, which is based on the country-bycountry reporting and financial statements of the Group's entities.

This analysis concludes that the effective tax rates calculated under the Pillar Two rules are above 15% in most of the jurisdictions in which the Group operates, with the exception of a small number of countries, including Ireland, Hong Kong and Singapore.

For those jurisdictions where the effective tax rate has fallen below this threshold, the ultimate parent entity of the Group, CO Sociedad de Gestión y Participación, S.A. ('COGESPAR'), is required to settle the Supplementary Tax for those jurisdictions with the Spanish tax authorities, except for Ireland, where the rule came into force on 1 January 2024 and a Qualified Domestic Supplementary Tax has been approved, so the settlement is made locally,

As a result of the analysis performed and given that the vast majority of the jurisdictions in which the Group operates exceed the 15% threshold, the Group's supplementary tax expense at year-end 2024, which has been recorded as a current tax expense, is insignificant.

11.b) Current Assets and Liabilities

Current tax assets and liabilities at 31 December 2024 and 2023 include the following items:

	Ū thousand
	31/12/2024	31/12/2023
Current tax assets:
Public Treasury debtor for:
Debtor balance Liquidation Consolidated tax group parent company	80,819	72,263
Other debtor balances of other tax groups or individual companies	50,188	94,638
Total current tax assets	131,007	166,901
Current tax liabilities:
Public Treasury creditor for:
Corporate tax litigation	734	734
Other creditor balances of other tax groups or individual companies	54,215	92,357
Total current tax liabilities	54,949	93,091

Current tax assets and liabilities consist of tax assets and liabilities that are expected to be offset against the Group's corporation tax liability when the tax return is filed.

At 31 December 2024, in application of the provisions of IFRIC 23, Ū734 thousand has been recognised under current tax liabilities to reflect contingencies arising from litigation with the tax authorities in relation to corporate income tax (Ū734 thousand at 31 December 2023).

11.c) Deferred tax assets and liabilities

In addition, at 31 December 2024 the Group had anticipated and deferred tax assets totalling Ū355,481 thousand and Ū800,153 thousand respectively, recognised under "Deferred tax assets" and "Deferred tax liabilities".

At 31 December 2023 these deferred tax assets and liabilities amounted to Ū281,413 thousand and Ū577,575 thousand respectively.

The origins of the deferred tax assets and liabilities available to the Group at 31 December 2024 and 2023, are as follows:

	Ū thousand
Deferred taxes debtors with origin in:	31/12/2024	31/12/2023
Tax losses passed on	17,939	33,457
Tax adjustments in technical provisions	155,440	159,476
Tax goodwill	1,127	1,393
Provisions for insolvencies	1,404	2,273
Expense from outsourcing of pensions	6,599	6,799
Accelerated depreciation balance sheet update	1,474	1,474
Provision for invoices pending collection	1,922	1,922
Adjustments for measurement of financial investments	52,123	70,959
Other deferred tax debtors	149,782	112,936
Impacts of measurement changes IFRS 9 / IFRS 17	77,360	(18,255)
TOTAL	465,170	372,434
Balance offsetting (*)	(109,689)	(91,021)
TOTAL	355,481	281,413

(*) This offsetting complies with the criteria for offsetting deferred tax assets and liabilities established by IAS 12.

	Ū thousand
Deferred taxes creditors with origin in:	31/12/2024	31/12/2023
Adjustments for measurement of financial investments	357,197	252,958
Stabilisation reserve	182,547	180,255
Other deferred tax creditors	133,176	137,334
Impacts of measurement changes IFRS 9 / IFRS 17	236,922	98,049
TOTAL	909,842	668,596
Balance offsetting (*)	(109,689)	(91,021)
TOTAL	800,153	577,575

(*) This offsetting complies with the criteria for offsetting deferred tax assets and liabilities established by IAS 12.

At 31 December 2024, in accordance with IFRIC 23, no contingencies arising from corporate income tax litigation with the tax authorities have been recognised under deferred tax liabilities. At 31 December 2023, no deferred tax liabilities were recognised in this respect either.

The Group does not have, on 31 December 2024, losses or tax credits of a significant amount for which deferred tax assets have been recognised on the balance sheet.

11.d) Reconciliation of accounting result and tax base

The reconciliation between the accounting result and tax base for Corporate Tax is as follows:

	2024 financial year in Ū thousand
	Profit and loss account		Income and expenses directly attributed to net equity		Total
Balance of income and expenses for the year Corporate tax	697,478 225,210		205,261 53,293		902,739 278,503
	I	D	I	D
Permanent differences	69,850	(10,370)	-	-	59,480
Temporary differences	412,384	(762,476)	153,731	(412,285)	(608,646)
Compensation for negative tax bases from previous years	-		-		-
Tax base	632,076		-		632,076

	2023 financial year in Ū thousand
	Profit and loss account		Income and expenses directly attributed to net equity		Total
Balance of income and expenses for the	640,798		251,996		892,794
year Corporate tax	197,603		58,883		256,486
	I	D	I	D
Permanent differences	23,226	(45,596)	-	-	(22,370)
Temporary differences	504,375	(679,296)	172,984	(483,863)	(485,800)
Compensation for negative tax bases from previous years	-		-		-
Tax base	641,110		-		641,110

The main permanent differences for the 2024 financial year are as follows:

	Ū thousand
	Increases	Decreases
Tax rate adjustment	5,792	-
Non-deductible expenses	12,212	-
Impairment Financial investments	2,316	-
Foreign withholdings	4,638	-
Donations	3,470	-
Others	41,422	(10,370)
Other permanent differences	69,850	(10,370)

The main temporary differences for the 2024 financial year are as follows:

	Ū thousand
	Increases	Decreases
Tax losses passed on	-	(63,598)
Tax adjustments in technical provisions	-	(16,541)
Outsourcing of pensions	-	(820)
measurement of financial investments	6,201	(510,606)
Stabilisation reserve	-	(9,393)
Impacts of measurement changes IFRS 9 / IFRS 17	391,865	(569,152)
Others	168,049	(4,651)
Total temporary differences	566,115	(1,174,761)

11.e) Reconciliation of accounting result and corporate income tax expense

The reconciliation between the income tax expense resulting from applying the general tax rate in force in each country to the accounting profit obtained by the various companies forming part of the Group and the income tax expense recorded for 2024 and 2023 is presented below:

	Ū thousand
	Year 2024	Year 2023
Profit before tax	922,688	838,401
Non-tax consolidation adjustments	63,369	5,965
Adjustments for permanent differences	59,480	(22,370)
Integrated tax base	1,045,537	821,996
25% of adjusted pre-tax profit	261,384	205,499
Tax effect by tax rates other than 25%	(6,273)	(11,508)
Market share resulting from applying the tax rate of each country	255,111	193,991
Deductions from the quota	(3,507)	(4,237)
Offsetting for negative tax bases	-	-
Current tax expense with origin in previous years	(5,429)	(745)
Impacts of measurement changes IFRS 9 / IFRS 17	(20,965)	8,594
Expense of corporate income tax registered with offsetting in the
income statement	225,210	197,603

Of the corporate income tax expense for the year recognised in the income statement, an amount of Ū310,632 thousand relates to current tax (Ū238,884 thousand in 2023) and an amount of (Ū85,422) thousand ((Ū41,281) thousand in 2023) relates to the change in deferred taxes, in both cases corresponding in full to continuing operations.

Double taxation deductions have not been considered in the previous table as they are mostly from dividends charged from subsidiaries eliminated in the consolidation process.

11.f) Years open for review by the tax authorities

According to current legislation in Spain, tax returns cannot be deemed definitive until they have been inspected by the tax authorities or, as the case may be, the statute of limitations period has elapsed (currently, and in general, four years from the day after the end of the regulatory deadline established for filing the corresponding declaration or self-assessment).

On 31 December 2024, Grupo Catalana Occidente and the tax consolidation group have the following years open for inspection:

Taxes	Years
Corporate tax	2016-2023 (*)
Value Added Tax	June 2019-November 2024 (**)
Withholdings from Income Tax and Corporation Tax	June 2019-November 2024 (**)
Tax on insurance premiums	June 2019-November 2024 (**)
Others	2021-2024
Local Taxes	2021-2024

(*) The Corporate Income Tax for the year 2024 is pending presentation, with the maximum date for submission being 25 July 2025.

(**) In accordance with a judgement by the Supreme Court, which defends a thesis which is in principle already overcome, the year 2019 expires on 30 January 2025, after the completion of the deadline for submission of annual summaries for that financial year.

In general, the Group companies are open to inspection by the tax authorities for the years determined by the applicable tax regulations in relation to the main taxes applicable to them, without prejudice to the following:

(i) On 2 January 2019, Plus Ultra and Grupo Catalana Occidente received communication of the start of proceedings for audit and investigation of a partial character. In particular, the inspection is designed to check the tax deductible financial goodwill regarding the Corporate Tax of Plus Ultra Companies (financial years 2014 and 2015) and the individual corporation tax of this (financial years 2016 and 2017). Therefore, the statute of limitations period for the years 2014 and 2015 Corporate Income Tax of Plus Ultra was interrupted.

In this sense, in the past, the Tax Authority already inspected this same concept and, at the opening of 2019, Plus Ultra has opened a number of contentious-administrative proceedings against the inspection records: (i) in relation to the goodwill deducted in 2005 to 2010, the Company had filed a contentious-administrative appeal with the Spanish National Court ("NC") against the decision of the Central Economic Administrative Tribunal ("TEAC") of 13 January 2016, amounting to 4,021 thousand euros; and (ii) in relation to the goodwill deducted in 2011 to 2013, the Company is awaiting a ruling from the TEAC, which amounts to Ū2,022 thousand.

On 19 December 2019, the NC issued a judgement, the content of which was made known to Plus Ultra on 27 January 2020. In that judgement, the NC upheld the Company's claims, confirming that the total amount of goodwill for accounting purposes is tax deductible for the purposes of determining the taxable income for income tax purposes for 2007, 2008, 2009 and 2010. On 2 June 2020, the NC declares the previous sentence to be final and the Administration is notified for its execution and compliance.

As a result of the foregoing, the Group has recognised a provision of Ū11,419 thousand under "Tax Liabilities" in the consolidated balance sheet, relating to the risk associated with this contingency from 2007 to the present day. During the first half of 2020, the Group has recognised the aforementioned amount as income under the heading 'Other non-technical income' in the income statement for the period, thereby cancelling this provision.

On 23 May 2022, the NC issued a judgement, the content of which was made known to Plus Ultra on 27 May 2022. In that judgement, the NC upheld the Company's claims, confirming that the goodwill for accounting purposes is tax deductible for the purposes of determining the taxable income for income tax purposes for 2011, 2012 and 2013.

(ii) On 5 July 2018, the ACyC received notification of the initiation of partial verification and investigation proceedings. Specifically, the purpose of the inspection was to verify the R&D+IT deduction for the 2013 and 2014 financial years. Therefore, the limitation period for ACyC's corporate income tax for the years 2013 and 2014 was interrupted.

On 30 September 2020, the Tax Agency notified ACyC of the Settlement Agreement issued, with a total settlement of Ū1,789 thousand due to discrepancies regarding the quantification of the deduction for the development of innovation and development activities applied in 2013 and 2014.

This settlement was paid and was the object of an Economic-Administrative Claim, presented in due time and form. In addition, the Tax Agency opened a penalty proceeding against ACyC for a total of Ū734 thousand.

On 19 May 2021, ACyC filed a written economic-administrative claim against the penalty imposed by the Tax Agency, having submitted the corresponding allegations on 25 November 2021. The TEAC has partially upheld ACyC's claims, annulling the penalty but confirming the regularisation.

• (iii) On 20 November 2020, the tax authorities notified Grupo Catalana Occidente, S.A., in its capacity as the parent company of the consolidated tax group, of the commencement of partial tax audits limited to the verification of the tax credit for international double taxation applied in 2016, 2017 and 2018 by Seguros Catalana Occidente. Although this inspection was closed on 18 February 2022, the statute of limitations period for the aforementioned years of the consolidated group was again interrupted.
• (iv) In October 2021, the Tax Agency notified Atradius Collections S.L. of the initiation of a limited verification procedure for Value Added Tax for 2020. Consequently, the statute of limitations period for Value Added Tax of Atradius Collections S.L. for the aforementioned financial year was interrupted.
• (v) On 10 July 2023, various Group entities received notification of the start of general tax audits:
  • Grupo Catalana Occidente, S.A., in its capacity as parent entity of the 173/01 tax consolidation group, for the verification of Corporate Income Tax for the 2016 to 2019 financial years.
  • Grupo Catalana Occidente, S.A., in its capacity as parent entity of VAT group 002/14, for the verification of VAT for the months of June to December 2019.
  • Grupo Catalana Occidente, S.A., in its capacity as the parent company of the VAT 002/14 group, for the verification of withholdings of income on account of real estate capital, nonresident taxation, movable capital, income from work, professional income and income from economic activities, all corresponding to the last three quarters of the 2019 financial year.
  • ACyC, Nortehispana, Seguros Catalana Occidente and Plus Ultra, for the verification of the Tax on Insurance Premiums and withholdings of income on account of real estate capital, non-resident taxation, movable capital, income from work, professional income and income from economic activities, all corresponding to the months of June to December of the 2019 financial year.
• (vi) On 3 and 21 June 2024, Occident, in its capacity as successor to Aseq Vida y Accidentes, S.A., Seguros y Reaseguros, and GCO Activos Inmobiliarios were inspected, and the inspection of these entities was carried out within the framework of the aforementioned inspection.

The foregoing shall be interpreted without prejudice to Article 66.bis of Law 58/2003, of 17 December, General Tax, which establishes the right in favour of the Administration to start the procedure for checking: (i) the bases or fees offset or pending offset or deductions applied or pending application, will expire after 10 years from the day after the end of the regulatory deadline established for filing the declaration or self-assessment corresponding to the tax year or period in which the right to offset said bases or quotas or to implement said deductions was generated; and (ii) to investigate the facts, acts, elements, activities, operations, businesses, values and other determining factors of the tax obligation in order to verify correct compliance with the applicable regulations.

On the other hand, as a result of possible varying interpretations of applicable tax legislation for the years subject to inspection, contingent tax liabilities might result, which cannot be objectively quantified. However, the Directors of the parent company believe that the applicable tax debt, if any, would not have a significant effect on the consolidated financial statements.

In compliance with the provisions of article 86 of Law 27/2014, of 27 November, on Corporate Income Tax ('LIS') and 110 of Provincial Regulation 2/2014, of 17 January, on Corporate Income Tax in the Historical Territory of Guipuzkoa (hereinafter, "NFIS"), the following is hereby stated:

• On 12 June 2024, a deed of merger was granted, by virtue of which Tecniseguros, Sociedad de Agencia de Seguros, S.A.. (hereinafter, the "Absorbing Company") absorbed the company Bilbao Vida y Gestores Financieros; S.A., (hereinafter, the "Absorbed Company") and the Absorbing Company was renamed Occident GCO Mediadores, Sociedad de Agencia de Seguros, S.A. The merger was carried out in order to achieve the creation of operational synergies, more efficient management of the activity, and simplification of the administrative and management of the economic activities carried out by the Companies, with the consequent cost savings and generation of efficiencies. The aforementioned merger operation was carried out under the tax neutrality regime laid down in Chapter VII of Title VII of the LIS, for which purpose the mandatory notification to the Provincial Council of Biscay was made in accordance with this regulation. Occident GCO Mediadores, Sociedad de Agencia de Seguros, S.A. plans to include in the Annual Report of its individual Financial Statements for the 2024 financial year the information required by article 86 of the LIS.
• On 24 July 2024, a deed of merger was executed, by virtue of which Tanatorio Donostialdea-Donostialdeko Beilatokia, S.A. (hereinafter, the "Absorbing Company") absorbed the company Tanatorio del Bidasoa, S.A. Sociedad Unipersonal (hereinafter, the "Absorbed Company"), in order to achieve the creation of operational synergies, a more efficient management of the activity, and simplification of the administrative management and management of the economic activities carried out by the Companies, with the consequent saving in costs and generation of efficiencies. Said merger operation was subject to the tax neutrality regime established in Chapter VII of Title VI of the NFIS, for which purpose, and in accordance with said regulation, the mandatory communication to the Tax Administration was made. Tanatorio Donostialdea-Donostialdeko Beilatokia, S.A. plans to include in the Annual Report of its individual Financial Statements corresponding to the 2024 financial year the information required by article 110 of the NFIS.
• On 5 September 2024, a deed of merger was granted, by virtue of which Mémora Servicios Funerarios, S.L. (hereinafter, the "Absorbing Company") absorbed the company Taurus Bidco, S.L.U. (hereinafter, the "Absorbed Company"), to simplify the corporate structure by concentrating in a single entity all the holdings in companies engaged in the funeral business, as well as the investments, optimising the common resources and taking advantage of the synergies generated between the companies involved in the reorganisation; rationalising economic resources, achieving a better financial and document management structure; achieving more efficient management and greater profitability of the activities carried out, simplifying and reducing administrative and management costs, as well as commercial, accounting and tax obligations; and strengthening and, therefore, improving the financial and brand image with regards to third parties. Said merger operation was subject to the tax neutrality regime established in Chapter VII of Title VII of the LIS, for which purpose, and in accordance with said regulation, the mandatory communication to the Tax Administration was made. Mémora Servicios Funerarios, S.L. plans to include in the Annual Report of its individual Financial Statements corresponding to the financial year 2024 the mentions foreseen with obligatory character in article 86 of the LIS.
• On 25 October 2024, a deed of merger was granted, by virtue of which Mémora Servicios Funerarios, S.L. (hereinafter, the "Absorbing Company") absorbed the company Servicios Funerarios y Tanatorios de Soria, S.L.U. (hereinafter, the "Absorbed Company"), for reasons of rationalisation and simplification of the corporate structure of the group to which the Companies belong, as both are funeral companies whose activity is the provision of services related to the funeral activity, with the aim of achieving the creation of operational synergies, a more efficient management of the activity, and simplification of the administrative management and running of the economic activities carried out by the Companies, with the consequent saving in costs and generation of efficiencies. Said merger operation was subject to the tax neutrality regime established in Chapter VII of Title VII of the LIS, for which purpose, and in accordance with said regulation, the mandatory communication to the Tax Administration was made. Mémora Servicios Funerarios, S.L. plans to include in the Annual Report of its individual Financial Statements corresponding to the financial year 2024 the mentions foreseen with obligatory character in article 86 of the LIS.
• On 29 October 2024, a deed of merger was executed, by virtue of which Grupo Catalana Occidente Activos Inmobiliarios, S.L. (hereinafter, the "Absorbing Company") absorbed the company Peñalvento, S.L.U. (hereinafter, the "Absorbed Company"), in order to eliminate, or at least reduce, the administrative and management costs involved in maintaining two companies operating partially in the same area. Said merger operation was subject to the tax neutrality regime established in Chapter VII of Title VII of the LIS, for which purpose, and in accordance with said regulation, the mandatory communication to the Tax Administration was made. Grupo Catalana Occidente Activos Inmobiliarios, S.L. plans to include in the notes to its individual financial statements for 2024 the information required by article 86 of the Spanish Corporation Tax Law.
• On 29 December 2024, a deed of merger was executed whereby Occident (hereinafter, the "Absorbing Company") absorbed Nortehispana de Seguros y Reaseguros, S.A.U. (hereinafter, the "Absorbed Company"), an entity operating in the insurance sector and in the same territorial scope, merging in order to take advantage of synergies through the rationalisation of management and administrative control procedures, avoiding inefficient dispersion and duplication of overheads, increasing profitability through savings and, in short, reducing administrative and management complexity. Said merger operation was subject to the tax neutrality regime established in Chapter VII of Title VII of the LIS, for which purpose, and in accordance with said Law, the mandatory communication to the Tax Administration was made. Occident plans to include in the notes to its individual financial statements for the 2024 financial year the mandatory disclosures provided for in article 86 of the LIS.

12. Other assets

The breakdown of financial liabilities at 31 December 2024 and 2023 broken down by nature, is as follows (in Ū thousand):

	Ū thousand
Other assets	31/12/2024	31/12/2023
Assets derived from pension liabilities (see Note 15)	46,691	94,540
Accruals	67,837	73,076
Prepayment	26,669	42,118
Other accruals	41,168	30,958
Other assets	4,259	4,074
TOTAL	118,787	171,690

The assets arising from pension commitments correspond to the surplus of pension plans from the subsidiaries of Atradius NV.

13. Financial liabilities at amortised cost

The breakdown of financial liabilities at 31 December 2024 and 2023 broken down by nature, is as follows (in Ū thousand):

	Ū thousand
Financial liabilities at amortised cost	31/12/2024	31/12/2023
Subordinated liabilities	247,938	156,205
Other debts	1,065,844	972,443
Payables on direct insurance, coinsurance and reinsurance business	68,445	54,182
Deposits received on buying reinsurance	12,763	15,252
Bank borrowings	629	779
Rest of debts	984,007	902,230
TOTAL	1,313,782	1,128,648

Financial liabilities mature in the short term, except for subordinated liabilities whose maturity is detailed in note 13.a).

13.a) Subordinated liabilities

Subordinated liabilities include, as at 31 December 2024, the subordinated issue made by Atradius Crédito y Caución S.A. de Seguros y Reaseguros, a subsidiary of Atradius N.V. (at 31 December 2023, the subordinated liabilities included the subordinated issue made by Atradius Finance B.V., a subsidiary of Atradius N.V.).

On 23 September 2014, Atradius Finance B.V. issued subordinated bonds for a nominal aggregate amount of Ū250,000 thousand with a maturity of 30 years, which may be re-purchased beginning on the tenth year, on a quarterly basis. The bonds were irrevocably, unconditionally and subordinately guaranteed by Atradius N.V., a Group company. During the first 10 years, bonds had a fixed nominal annual interest rate of 5.250%, payable in annual instalments and, from that date, they will have a nominal variable interest rate of Euribor 3 months plus 5.031%, payable quarterly in arrears. The bonds are listed on the Luxembourg Stock Exchange.

The nominal amount of this subordinated debt eligible for Group purposes at 31 December 2023 amounted to Ū154,524 thousand, after deducting the Ū95,476 thousand that were subscribed by Occident from the issue date and eliminated in the consolidation process.

On 8 April 2024, GCO announced the launch of a repurchase invitation to the holders of this subordinated bond, accepting the repurchase in cash of the subordinated bonds validly tendered under this offer, which were duly redeemed.

Likewise, on 17 April 2024, Atradius Crédito y Caución S.A. de Seguros y Reaseguros, issued subordinated bonds for a nominal amount of Ū300,000 thousand with a maturity of 10 years and a fixed nominal annual interest rate of 5.000% payable in annual instalments in arrears. The bonds are listed on the Luxembourg Stock Exchange.

Since the issue date, Occident has underwritten a total of 49,600 thousand euros in nominal value of such subordinated debt. These operations have been eliminated in the consolidation process.

At 31 December 2024, the Group estimates the fair value of 100% of the subordinated bonds at Ū317,702 thousand (Ū254,406 thousand at 31 December 2023), and they are classified as Level 2 in the fair value hierarchy set out in IFRS 13 Measurement of the Fair Value.

The estimate of the fair value of the subordinated bond is obtained from the quotation provided by an independent expert, who uses proprietary measurement techniques in which the economic and market variables are provided by financial information providers. The measurement technique used calculates, in accordance with IFRS standards, the current value of the future cash flows of the subordinated bond, discounted using the euro government bond rate curve plus a risk spread. This risk spread is estimated using the credit spreads of listed subordinated bond issues of similar issuers and with similar rating and maturity profiles.

During the 2024 financial year, interest of Ū17,109 thousand was paid on subordinated bonds.

13.b) Other debts

A breakdown of the debts arising out of insurance, reinsurance and coinsurance contracts, together with other debts, at 31 December 2024 and 2023, is given below:

	Ū thousand
	31/12/2024	31/12/2023
Payables on direct insurance, coinsurance and reinsurance	68,445	54,182
business
Deposits received on buying reinsurance	12,763	15,252
Bank borrowings	629	779
Rest of other debts	984,007	902,230
TOTAL	1,065,844	972,443

"Rest of Other debts" includes the following items at 31 December 2024 and 2023:

	Ū thousand
Other debts	31/12/2024	31/12/2023
Tax and social debts	92,373	77,140
Public Treasury creditor for other items (withholdings, VAT, etc.)	38,115	24,660
Surcharges on insurance premiums	38,924	36,645
Social security agencies	15,334	15,835
Rest of debts	891,634	825,090
Bonds received	7,958	7,723
Research and Development project loan	1,981	2,095
Leasehold liabilities	296,145	270,608
Accrued expenses	294,797	266,963
Invoices pending payment	24,937	13,538
Sundry creditors	265,816	264,163
TOTAL	984,007	902,230

The breakdown by maturity of the "Rental liabilities" recorded at year-end is as follows:

	Ū thousand
Leasehold liabilities	31/12/2024	31/12/2023
Less than 1 year	35,445	38,990
Over one year but less than five	100,021	98,693
Over five years	171,958	141,635
Total (*)	307,424	279,318

(*) Does not include the effect of the financial discount.

The following items are included under the section 'accrued expenses by item' at 31 December 2024 and 2023:

	Ū thousand
Accrued expenses by item	31/12/2024	31/12/2023
Personnel expenses	89,814	93,399
Production expenses	51,181	43,226
External services and supplies	52,732	23,146
Other items	101,070	107,192
Total	294,797	266,963

14. Assets and liabilities from insurance and reinsurance contracts

Measurement of insurance and reinsurance assets and liabilities

The breakdown of insurance and reinsurance contract assets and liabilities at 31 December 2024 and 2023 by segment is as follows:

	Occident
		Life			Non-Life
31/12/2024	Direct Other Life Risk Multi Life Savings holding Other life Motor miscellan (*) risk contracts eous	Atradius	Total
Assets under insurance contracts	2,055	-	-	-	-	333	1,272	157,956	161,616
Assets for remaining coverage	2,230	-	-	-	-	341	1,552	(42,404)	(38,281)
Assets for claims incurred	(175)	-	-	-	-	(8)	(280)	187,276	186,813
Assets for acquisition cash flows	-	-	-	-	-	-	-	13,084	13,084
Assets under reinsurance contracts	-	-	-	-	28,554	20,851	54,656	694,722	798,783
Assets for remaining coverage	-	-	-	-	(4,804)	(4,540)	(1,916)	298,111	286,851
Assets for claims incurred	-	-	-	-	33,358	25,391	56,572	396,611	511,932
Liabilities under insurance contracts	221,036	5,438,808	1,069,167	42,149	831,107	535,297	369,052	1,997,704	10,504,320
Liabilities for remaining coverage	108,571	5,287,497	1,063,312	5,479	246,788	257,835	93,993	966,983	8,030,458
Liabilities for incurred claims	112,465	151,311	5,855	36,670	584,319	277,462	275,059	1,030,721	2,473,862
Liabilities under reinsurance
contracts	995	-	-	744	-	1,939	1,189	218	5,085
Liabilities for remaining coverage	2,781	-	-	157	-	5,591	1,532	231	10,292
Liabilities for incurred claims	(1,786)	-	-	587	-	(3,652)	(343)	(13)	(5,207)

(*) Includes funeral business.

	Occident
		Life Non-Life
31/12/2023	Life Risk (*)	Life Savings	Direct holding contracts	Other life	Motor	Multi risk	Other miscellan eous	Atradius	Total
Assets under insurance contracts	-	-	-	-	-	-	-	122,619	122,619
Assets for remaining coverage	-	-	-	-	-	-	-	(48,304)	(48,304)
Assets for claims incurred	-	-	-	-	-	-	-	158,092	158,092
Assets for acquisition cash flows	-	-	-	-	-	-	-	12,831	12,831
Assets under reinsurance contracts	1,290	-	-	-	24,346	47,953	52,328	654,132	780,049
Assets for remaining coverage	(1,860)	-	-	-	(2,979)	799	7,869	275,188	279,017
Assets for claims incurred	3,150	-	-	-	27,325	47,154	44,459	378,944	501,032
Liabilities under insurance contracts	200,563	5,437,803	870,982	42,759	771,836	472,961	319,779	1,722,831	9,839,514
Liabilities for remaining coverage	89,316	5,300,063	867,059	4,902	230,649	232,270	86,839	811,668	7,622,766
Liabilities for incurred claims	111,247	137,740	3,923	37,857	541,187	240,691	232,940	911,163	2,216,748
Liabilities under reinsurance
contracts	-	-	-	603	-	-	-	152	755
Liabilities for remaining coverage	-	-	-	173	-	-	-	166	339
Liabilities for incurred claims	-	-	-	430	-	-	-	(14)	416

(*) Includes funeral business.

14.a.1) Amounts determined at transition

For contracts measured under BBA and VFA, details of the insurance income and the movement in CSM by transitional approach as at 31 December 2024 and 31 December 2023 are shown below:

		Business at the start of the transition (1 January 2022) Business after 1 January 2022
2024	Fair value approach			Modified Retroactive Approach	Full Retroactive Approach	Occident				Total
	Life Risk (*)	Occident Life Savings	Direct holding contracts	Atradius	Atradius	Life Direct Life Risk holding Savings (*) contracts		Atradius
Contract income measured under BBA and VFA for 2024	38,728	102,847	12,754	85,679	55,710	2,582	17,061	12,930	2,166,102	2,494,393
CSM at 1 January 2024	54,223	147,870	69,587	47,665	22,234	387	45,163	13,147	148,238	548,514
Changes related to current services	(4,380)	(18,537)	(6,004)	(22,063)	(11,560)	(316)	(2,583)	(609)	(174,752)	(240,804)
CSM recognised for services provided	(4,380)	(18,537)	(6,004)	(22,063)	(11,560)	(316)	(2,583)	(609)	(174,752)	(240,804)
Changes related to future services	(8,723)	22,002	(70,836)	2,213	(72)	2,493	20,191	(11,329)	212,311	168,250
Contracts initially recognised in the year	-	-	-	182	288	227	14,714	3,073	257,096	275,580
Changes in estimates adjusting the CSM	(7,344)	27,080	(70,836)	1,687	(3,656)	2,534	5,722	(14,402)	(51,946)	(111,161)
Changes in estimates resulting in losses and reversals of losses on onerous contracts	(1,379)	(5,078)	-	344	3,296	(268)	(245)	-	7,161	3,831
Financial income/expenses on insurance contracts recognised in the income statement	45	2,932	73,435	285	(69)	79	1,636	21,929	7,510	107,782
Changes to the scope	-	-	-	-	-	-	-	-	-	-
CSM at 31 December 2024	41,165	154,267	66,182	28,100	10,533	2,643	64,407	23,138	193,307	583,742

(*) Includes funeral business.

	Business at the start of the transition (1 January 2022)					Business after 1 January 2022
	Fair value approach Occident			Modified	Full
				Retroactive	Retroactive		Occident
2023				Approach	Approach				Atradius	Total
	Life Risk (*)	Life Savings	Direct holding contracts	Atradius	Atradius	Life Risk (*)	Life Savings	Direct holding contracts
Contract income measured under BBA and VFA for 2023	37,033	110,056	11,884	90,805	289,117	1,297	17,003	9,395	1,920,473	2,487,063
CSM at 1 January 2023	48,379	173,110	85,733	78,173	39,719	147	5,777	8,374	111,062	550,474
Changes related to current services		(4,251) (20,322)	(4,874)	(48,513)	(21,768)	(196)	(1,032)	(285)	(141,359)	(242,600)
CSM recognised for services provided	(4,251)	(20,322)	(4,874)	(48,513)	(21,768)	(196)	(1,032)	(285)	(141,359)	(242,600)
Changes related to future services	10,183	(8,536)	(81,247)	17,562	4,329	365	39,630	(7,361)	169,766	144,691
Contracts initially recognised in the	-	-	-	(83)	426	2,120	23,963	3,035	374,659	404,120
year
Changes in estimates adjusting the	10,056	(13,625)	(81,247)	6,078	2,680	(3,001)	13,652	(10,298)	(202,366)	(278,071)
CSM
Changes in estimates resulting in
losses and reversals of losses on	127	5,089	-	11,567	1,223	1,246	2,015	(98)	(2,527)	18,642
onerous contracts
Financial income/expenses on
insurance contracts recognised in the	(88)	3,618	69,975	443	(207)	71	788	12,419	7,951	94,970
income statement
Changes to the scope	-	-	-	-	161	-	-	-	818	979
CSM at 31 December 2023	54,223	147,870	69,587	47,665	22,234	387	45,163	13,147	148,238	548,514

(*) Includes funeral business.

The same information is then provided for the reinsurance contracts held at 31 December 2024 and 31 December 2023. In this case, only for Atradius, as it presents the most significant amounts of reinsurance held by the Group:

	2022)	Business at the start of the transition (1 January	Business after 1 January 2022
2024	Modified Full Retroactive Retroactive Approach Approach Atradius Atradius		Atradius	Total
Reinsurance expenses for contracts measured under BBA and VFA for the 2024 financial year	(28,779)	(8,232)	(471,508)	(508,519)
CSM at 1 January 2024 (*)	35,168	7,945	60,319	103,432
Changes related to current services	(2,799)	(5,277)	890	(7,186)
CSM recognised for services provided	(2,799)	(5,277)	890	(7,186)
Changes related to future services	2,489	637	31,689	34,815
Contracts initially recognised in the year	38	55	82,890	82,983
Changes in estimates adjusting the CSM	2,451	582	(51,201)	(48,168)
Financial income/expenses on reinsurance contracts recognised in the income statement	-	1	1,016	1,017
Changes to the scope	-	-	-	-
CSM at 31 December 2024 (*)	34,858	3,306	93,914	132,078

(*) The CSM of reinsurance contracts held includes the loss recovery component:

	2022)	Business at the start of the transition (1 January	Business after 1 January 2022
2023	Modified Retroactive Approach	Full Retroactive Approach	Atradius	Total
	Atradius Atradius
Reinsurance expenses for contracts measured under BBA and VFA for the 2023 financial year	(47,073)	(33,152)	(441,806)	(522,031)
CSM at 1 January 2023 (*)	68,529	3,936	62,994	135,459
Changes related to current services	(21,199)	(2,976)	(27,601)	(51,776)
CSM recognised for services provided	(21,199)	(2,976)	(27,601)	(51,776)
Changes related to future services	(12,162)	6,985	23,018	17,841
Contracts initially recognised in the year	39	152	169,464	169,655
Changes in estimates adjusting the CSM	(12,201)	6,833	(146,446)	(151,814)
Financial income/expenses on reinsurance contracts recognised in the income statement	-	-	1,574	1,574
Changes to the scope	-	-	334	334
CSM at 31 December 2023 (*)	35,168	7,945	60,319	103,432

(*) The CSM of reinsurance contracts held includes the loss recovery component.

14.a.2) Reconciliation of insurance and reinsurance contract assets and liabilities - Analysis by remaining coverage and incurred claims

14.a.2.1) Non holding and indirect holding contracts

For contracts measured under BBA, the reconciliation from opening to closing balances of the liability/asset for remaining cover and the asset/liability for incurred claims for the financial years 2024 and 2023 for insurance contracts issued by the Group is shown below:

Occident - Life

		2024			2023
Occident - Life BBA	Remaining cover		Claims incurred	Total	Remaining cover		Claims incurred	Total
Insurance contracts issued	Excluding the loss component	Loss component			Excluding the loss component	Loss component
Insurance contract liabilities/(Insurance contract assets) as at 1 January	5,312,576	68,499	144,203	5,525,278	5,339,453	53,215	118,843	5,511,511
Insurance service income	(161,219)	-	-	(161,219)	(160,504)	-	-	(160,504)
Insurance service expenses	20,455	(12,522)	111,290	119,223	22,879	14,724	111,298	148,901
Incurred claims and other insurance service expenses	(7,784)	-	97,728	89,944	(16,210)	-	102,716	86,506
Changes related to past services: adjustments to incurred claims liability	-	-	(409)	(409)	-	-	(295)	(295)
Losses and loss reversals on onerous contracts	-	(12,522)	13,971	1,449	-	14,724	8,877	23,601
Amortisation and impairment of insurance acquisition flows	28,239	-	-	28,239	39,089	-	-	39,089
Profit/(loss) of the insurance service	(140,764)	(12,522)	111,290	(41,996)	(137,625)	14,724	111,298	(11,603)
Financial income/expenses on insurance
contracts recognised in the income	165,800	548	-	166,348	173,141	109	-	173,250
statement
Financial income/expense from		-	-	82,015	166,165	-	-	166,165
insurance contracts recognised in OCI	82,015
Total changes recognised in the income
statement and other comprehensive	107,051	(11,974)	111,290	206,367	201,681	14,833	111,298	327,812
income
Investment components	(613,608)	-	613,608	-	(746,439)	-	747,018	579
Other changes	(524)	-	(291)	(815)	(522)	-	(329)	(851)
Cash flow	498,129	1,420	(709,538)	(209,989)	518,403	451	(832,627)	(313,773)
Premiums received	525,761	1,420	-	527,181	556,555	451	-	557,006
Cash flows from acquisition	(27,632)	-	-	(27,632)	(38,152)	-	-	(38,152)
Benefits and other insurance expenses paid	-	-	(709,538)	(709,538)	-	-	(832,627)	(832,627)
Changes to the scope	-	-	-	-	-	-	-	-
Insurance contract liabilities/(Insurance
contract assets) as at 31 December	5,303,624	57,945	159,272	5,520,841	5,312,576	68,499	144,203	5,525,278

Atradius

		2024			2023
Atradius	Remaining cover		Claims incurred	Total	Remaining cover		Claims incurred	Total
Insurance contracts issued	Excluding the loss component	Loss component			Excluding the loss component	Loss component
Insurance contract liabilities/(Insurance contract assets) as at 1 January (*)	657,624	202,347	753,072	1,613,043	658,871	314,562	558,365	1,531,798
Insurance service income Insurance service expenses	(2,307,491) 528,974	- 129,191	- 1,068,911	(2,307,491) 1,727,076	(2,300,395) 532,349	- (107,201)	- 1,198,034	(2,300,395) 1,623,182
Incurred claims and other insurance service expenses	10,457	(175,455)	1,263,186	1,098,188	9,854	(272,689)	1,227,555	964,720
Changes related to past services: adjustments to incurred claims liability	(20)	-	(194,275)	(194,295)	8	-	(29,521)	(29,513)
Losses and loss reversals on onerous contracts	-	304,646	-	304,646	-	165,488	-	165,488
Amortisation and impairment of insurance acquisition flows	518,537	-	-	518,537	522,487	-	-	522,487
Profit/(loss) of the insurance service	(1,778,517)	129,191	1,068,911	(580,415)	(1,768,046)	(107,201)	1,198,034	(677,213)
Financial income/expenses on insurance contracts recognised in the income statement	22,439	4,121	29,293	55,853	1,371	4,088	39,893	45,352
Financial income/expense from insurance contracts recognised in OCI	11,195	6,204	(8,667)	8,732	(5,064)	(9,338)	(33,397)	(47,799)
Total changes recognised in the income statement and other comprehensive income	(1,744,883)	139,516	1,089,537	(515,830)	(1,771,739)	(112,451)	1,204,530	(679,660)
Investment components	-	-	-	-	-	-	-	-
Other changes	-	-	-	-	-	-	-	-
Cash flow	1,754,783	-	(999,164)	755,619	1,764,807	-	(1,012,928)	751,879
Premiums received	2,280,813	-	-	2,280,813	2,251,801	-	(8,336)	2,243,465
Cash flows from acquisition	(526,030)	-	-	(526,030)	(486,994)	-	-	(486,994)
Benefits and other insurance expenses	-	-	(999,164)	(999,164)	-	-	(1,004,592)	(1,004,592)
paid Changes to the scope	-	-	-	-	5,685	236	3,105	9,026
Insurance contract liabilities/(Insurance contract assets) as at 31 December (*)	667,524	341,863	843,445	1,852,832	657,624	202,347	753,072	1,613,043

(*) Insurance contract assets exclude acquisition cash flow assets.

As described in note 3.i.3) Aggregation, the Atradius business is managed at country level, except for global credit insurance, special products and payment protection insurance which are managed at Group level. This aggregation level implies that, in certain accounting units, there is a loss component when they are adversely impacted by macroeconomic conditions or peak losses, even though the Atradius business has been a profitable business as a whole.

The same information is presented below for the reinsurance contracts held for Atradius:

		2024			2023
Atradius	Remaining cover				Remaining cover
Reinsurance contracts held	Excluding loss recovery component	Loss recovery component	Claims incurred	Total	Excluding loss recovery component	Loss recovery component	Claims incurred	Total
Reinsurance contract assets/(Reinsurance contract liabilities) as of 1 January	201,153	73,869	378,958	653,980	231,873	76,928	325,177	633,978
Profit/(loss) of the reinsurance service	(508,451)	44,598	262,038	(201,815)	(574,712)	(3,059)	315,663	(262,108)
Financial income/expenses on reinsurance contracts recognised in the income statement	7,790	-	4,951	12,741	5,831	-	4,623	10,454
Financial income/expense from reinsurance contracts recognised in OCI	6,682	-	4,052	10,734	(352)	-	(1,943)	(2,295)
Total changes recognised in the income statement and other comprehensive income	(493,979)	44,598	271,041	(178,340)	(569,233)	(3,059)	318,343	(253,949)
Cash flow	472,239	-	(253,375)	218,864	537,009	-	(266,306)	270,703
Premiums paid	803,947	-	-	803,947	889,697	-	-	889,697
Benefits and expenses received	(331,708)	-	(253,375)	(585,083)	(352,688)	-	(266,306)	(618,994)
Changes to the scope	-	-	-	-	1,504	-	1,744	3,248
Reinsurance contract assets/(Reinsurance contract liabilities) as of 31 December	179,413	118,467	396,624	694,504	201,153	73,869	378,958	653,980

For contracts measured under the simplified approach, the reconciliation from the opening to the closing balances of the liability/asset for the remaining coverage and the incurred claims asset/liability for 2024 and 2023 is shown below:

Occident - Non-Life

			2024					2023
Occident - Non-Life PAA	Remaining cover		Claims incurred		Total	Remaining cover		Claims incurred		Total
Insurance contracts issued	Excluding the loss compo nent	Loss compo nent	Estimation of the current value of FCF	Non financial risk adjustment		Excluding the loss compo nent	Loss compo nent	Estimation of the current value of FCF	Non financial risk adjust ment
Insurance contract liabilities/(Insurance contract assets) as at 1 January	549,757	-	940,398	74,419	1,564,574	535,153	-	943,772	63,730	1,542,655
Insurance service income	(1,987,657)	-	-	-		(1,987,657) (1,850,627)	-	-	-	(1,850,627)
Insurance service expenses	476,432	-	1,281,725	3,962	1,762,119	453,334	-	1,208,176	10,689	1,672,199
Incurred claims and other	-	-	1,290,650	26,118	1,316,768	-	-	1,304,088	15,630	1,319,718
insurance service expenses
Changes related to past
services: adjustments to	-	-	(8,925)	(22,156)	(31,081)	-	-	(95,912)	(4,941)	(100,853)
incurred claims liability
Losses and loss reversals on	-	-	-	-	-	-	-	-	-	-
onerous contracts Amortisation and impairment
of insurance acquisition flows	476,432				476,432	453,334				453,334
Profit/(loss) of the insurance
service	(1,511,225)	-	1,281,725	3,962		(225,538) (1,397,293)	-	1,208,176	10,689	(178,428)
Financial income/expenses on
insurance contracts recognised	-	-	14,956	-	14,956		-	8,989	-	8,989
in the income statement
Financial income/expense
from insurance contracts	-	-	831	-	831		-	21,765		21,765
recognised in OCI
Total changes recognised in the
income statement and other	(1,511,225)	-	1,297,512	3,962		(209,751) (1,397,293)	-	1,238,930	10,689	(147,674)
comprehensive income
Investment components	-	-	-	-	-	-	-	-	-	-
Other changes	(3,642)	-	(2,632)	-	(6,274)	(3,347)	-	(2,411)	-	(5,758)
Cash flow	1,561,833	-	(1,176,531)	-	385,302	1,415,244	-	(1,239,893)	-	175,351
Premiums received	2,053,417	-	-	-	2,053,417	1,878,659	-	-	-	1,878,659
Cash flows from acquisition	(491,584)	-	-	-	(491,584)	(463,415)	-	-	-	(463,415)
Benefits and other insurance	-	-	(1,176,531)	-	(1,176,531)	-	-	(1,239,893)	-	(1,239,893)
expenses paid
Changes to the scope	-	-	-	-	-	-	-	-	-	-
Insurance contract liabilities/(Insurance contract	596,723	-	1,058,747	78,381	1,733,851	549,757	-	940,398	74,419	1,564,574
assets) as at 31 December

Occident - Life

			2024			2023
Occident - Life PAA	Remaining cover		Claims incurred		Total	Remaining cover		Claims incurred		Total
Insurance contracts issued	Excluding the loss component	Loss compon ent	Estimation of the current value of FCF	Non financial risk adjust ment		Excluding the loss component	Loss compon ent	Estimation of the current value of FCF	Non financial risk adjust ment
Insurance contract
liabilities/(Insurance contract	13,206	-	126,365	16,276	155,847	15,534	-	125,616	16,404	157,554
assets) as at 1 January
Insurance service income	(436,243)	-	-	-	(436,243)	(435,595)	-	-	-	(435,595)
Insurance service expenses	89,632	-	247,909	(32)	337,509	80,675	-	243,281	(128)	323,828
Incurred claims and other	-	-	242,909	(32)	242,877	6,091	-	240,852	(128)	246,815
insurance service expenses
Changes related to past services:
adjustments to incurred claims	-	-	5,000	-	5,000	-	-	2,429	-	2,429
liability Losses and loss reversals on
onerous contracts	-	-	-	-	-	-	-	-	-	-
Amortisation and impairment of
insurance acquisition flows	89,632	-	-	-	89,632	74,584	-	-	-	74,584
Profit/(loss) of the insurance
service	(346,611)	-	247,909	(32)	(98,734)	(354,920)	-	243,281	(128)	(111,767)
Financial income/expenses on
insurance contracts recognised in	-	-	-	-	-	-	-	-	-	-
the income statement
Financial income/expense from
insurance contracts recognised in	-	-	-	-	-	-	-	-	-	-
OCI
Total changes recognised in the
income statement and other comprehensive income	(346,611)	-	247,909	(32)	(98,734)	(354,920)	-	243,281	(128)	(111,767)
Investment components	-	-	-	-	-	-	-	-	-	-
Other changes	(973)	-	(636)	-	(1,609)	(734)	-	(513)	-	(1,247)
Cash flow	372,126	-	(248,533)	-	123,593	353,326	-	(242,019)	-	111,307
Premiums received	464,112	-	-	-	464,112	423,618	-	-	-	423,618
Cash flows from acquisition	(91,986)	-	-	-	(91,986)	(70,292)	-	-	-	(70,292)
Benefits and other insurance
expenses paid	-	-	(248,533)	-	(248,533)	-	-	(242,019)	-	(242,019)
Changes to the scope	-	-	-	-	-	-	-	-	-	-
Insurance contract
liabilities/(Insurance contract	37,748	-	125,105	16,244	179,097	13,206	-	126,365	16,276	155,847
assets) as at 31 December

14.a.2.2) Direct holding contracts

For contracts measured under VFA, the reconciliation from the opening to the closing balances of the liability/asset for the remaining coverage and the incurred claims asset/liability for 2024 and 2023 is shown below:

		2024			2023
Occident - Life VFA	Remaining cover		Claims incurred	Total		Remaining cover		Total
Insurance contracts issued	Excluding the loss component	Loss component			Excluding the loss component	Loss component
Insurance contract liabilities/(Insurance
contract assets) as at 1 January	867,060	-	3,922	870,982	768,340	-	3,791	772,131
Insurance service income	(25,683)	-	-	(25,683)	(21,279)	-	-	(21,279)
Insurance service expenses	11,789	-	2,937	14,726	4,839	(3)	2,685	7,521
Incurred claims and other insurance service expenses	(345)	-	2,937	2,592	(8,244)	-	2,685	(5,559)
Changes related to past services:
adjustments to incurred claims liability	-	-	-	-	-	-	-	-
Losses and loss reversals on onerous
contracts	-	-	-	-	-	(3)	-	(3)
Amortisation and impairment of	12,134	-	-	12,134	13,083	-	-	13,083
insurance acquisition flows
Profit/(loss) of the insurance service	(13,894)	-	2,937	(10,957)	(16,440)	(3)	2,685	(13,758)
Financial income/expenses on insurance
contracts recognised in the income	125,388	-	-	125,388	92,857	3	-	92,860
statement
Financial income/expense from	-	-	-	-	-	-	-	-
insurance contracts recognised in OCI
Total changes recognised in the income
statement and other comprehensive	111,494	-	2,937	114,431	76,417	-	2,685	79,102
income
Investment components	(142,800)	-	142,800	-	(139,168)	-	139,198	30
Other changes	(170)	-	(63)	(233)	(175)	-	(67)	(242)
Cash flow	227,728	-	(143,741)	83,987	161,646	-	(141,685)	19,961
Premiums received	239,516	-	-	239,516	174,424	-	-	174,424
Cash flows from acquisition	(11,788)	-	-	(11,788)	(12,778)	-	-	(12,778)
Benefits and other insurance expenses	-	-	(143,741)	(143,741)	-	-	(141,685)	(141,685)
paid
Changes to the scope	-	-	-	-	-	-	-	-
Insurance contract liabilities/(Insurance	1,063,312	-	5,855	1,069,167	867,060	-	3,922	870,982
contract assets) as at 31 December

14.a.3) Reconciliation of insurance and reinsurance contract assets and liabilities - Analysis by measurement components

14.a.3.1) Non holding and indirect holding contracts

For contracts measured under BBA, the reconciliation from opening to closing balances, broken down by component, for insurance contracts issued and reinsurance contracts held for 2024 and 2023 is shown below:

Occident - Life

		2024			2023
Occident - Life BBA	Estimation of the current	Non financial risk	CSM	Total	Estimation of the current	Non financial risk	CSM	Total
Insurance contracts issued	value of FCF	adjustment			value of FCF	adjustment
Insurance contract liabilities/(Insurance	5,152,133	125,502	247,643	5,525,278	5,176,805	107,293	227,413	5,511,511
contract assets) as at 1 January
Changes related to current services	(4,377)	(12,841)	(25,817)	(43,035)	1,546	(10,658)	(25,801)	(34,913)
CSM recognised for services provided	-	-	(25,817)	(25,817)	-	-	(25,801)	(25,801)
Change in non-financial risk adjustment	-	(12,841)	-	(12,841)	-	(9,216)	-	(9,216)
for past due risk
Experience settings	(4,377)	-	-	(4,377)	1,546	(1,442)	-	104
Changes related to future services	(40,949)	6,433	35,964	1,448	(24,439)	6,981	41,642	24,184
Contracts initially recognised in the year	(21,146)	8,399	14,941	2,194	(31,163)	5,401	26,083	321
Changes in estimates adjusting the CSM	(25,804)	(2,189)	27,993	-	(7,926)	1,427	7,082	583
Changes in estimates resulting in losses
and reversals of losses on onerous	6,001	223	(6,970)	(746)	14,650	153	8,477	23,280
contracts
Changes related to past services	(409)	-	-	(409)	(294)	-	-	(294)
Adjustments to liabilities for incurred
claims	(409)	-	-	(409)	(294)	-	-	(294)
Financial income/expenses on insurance
contracts recognised in the income	157,042	4,614	4,692	166,348	166,414	2,446	4,389	173,249
statement
Financial income/expense from
insurance contracts recognised in OCI	61,929	20,087	-	82,016	146,725	19,440	-	166,165
Total changes recognised in the income
statement and other comprehensive	218,971	24,701	4,692	248,364	313,139	21,886	4,389	339,414
income
Other changes	(815)	-	-	(815)	(851)	-	-	(851)
Cash flow	(209,990)	-	-	(209,990)	(313,773)	-	-	(313,773)
Premiums received	527,181	-	-	527,181	557,005	-	-	557,005
Cash flows from acquisition	(27,633)	-	-	(27,633)	(38,147)	-	-	(38,147)
Benefits and other insurance expenses
paid	(709,538)	-	-	(709,538)	(832,631)	-	-	(832,631)
Changes to the scope	-	-	-	-	-	-	-	-
Insurance contract liabilities/(Insurance
contract assets) as at 31 December	5,114,564	143,795	262,482	5,520,841	5,152,133	125,502	247,643	5,525,278

Atradius

		2024			2023
Atradius	Estimation of the current	Non financial risk	CSM	Total	Estimation of the current	Non financial risk	CSM	Total
Insurance contracts issued	value of FCF	adjustment			value of FCF	adjustment
Insurance contract liabilities/(Insurance	1,227,481	167,425	218,137	1,613,043	1,131,429	171,415	228,954	1,531,798
contract assets) as at 1 January (*)
Changes related to current services	(374,213)	(4,986)	(208,375)	(587,574)	(467,742)	(40,084)	(211,640)	(719,466)
CSM recognised for services provided	-	-	(208,375)	(208,375)	-	-	(211,640)	(211,640)
Change in non-financial risk adjustment	-	(4,986)	-	(4,986)	-	(40,084)	-	(40,084)
for past due risk
Experience settings	(374,213)	-	-	(374,213)	(467,742)	-	-	(467,742)
Changes related to future services	(62,893)	153,582	214,452	305,141	(127,767)	102,382	191,657	166,272
Contracts initially recognised in the year	(274,106)	136,873	257,566	120,333	(339,855)	98,089	375,002	133,236
Changes in estimates adjusting the CSM	51,454	2,462	(53,916)	-	191,929	1,655	(193,608)	(24)
Changes in estimates resulting in losses
and reversals of losses on onerous
contracts	159,759	14,247	10,802	184,808	20,159	2,638	10,263	33,060
Changes related to past services	(226,489)	(70,997)	-	(297,486)	(58,405)	(65,270)	-	(123,675)
Adjustments to liabilities for incurred
claims	(238,257)	(70,997)	-	(309,254)	(54,356)	(65,270)	-	(119,626)
Adjustments to the remaining hedging
liability	11,768	-	-	11,768	(4,049)	-	-	(4,049)
Financial income /expenses from
insurance contracts	49,215	7,147	7,726	64,088	(9,306)	(1,672)	8,187	(2,791)
Cash flow	755,620	-	-	755,620	751,879	-	-	751,879
Changes to the scope	-	-	-	-	7,393	654	979	9,026
Insurance contract liabilities/(Insurance
contract assets) as at 31 December (*)	1,368,721	252,171	231,940	1,852,832	1,227,481	167,425	218,137	1,613,043

(*) Insurance contract assets exclude acquisition cash flow assets.

Current services:

• CSM recognised for services provided: insurance income linked to the amortisation of the CSM accrued in the year based on the cover provided.
• Change in non-financial risk adjustment for past due risk: insurance income associated with the release of the risk adjustment.
• Experience adjustments: reflects the difference between actual flows and expected flows for the current period.

Future services:

– Changes in estimates adjusting the CSM: changes linked to non-financial assumptions, resulting in changes in future cash flows or in the risk adjustment and allocated to CSM.

The same information is presented below for the reinsurance contracts held for Atradius:

		2024			2023
Atradius Reinsurance contracts held	Estimation of the current value of FCF	Non financial risk adjustment	CSM	Total	Estimation of the current value of FCF	Non financial risk adjustment	CSM	Total
Reinsurance contract assets/(Reinsurance contract liabilities) as of 1 January	482,874	67,674	103,432	653,980	430,850	67,669	135,459	633,978
Changes related to current services	(160,247)	(14,461)	(7,186)	(181,894)	(213,641)	(16,632)	(51,776)	(282,049)
CSM recognised for services provided	-	-	(7,186)	(7,186)	-	-	(51,776)	(51,776)
Change in non-financial risk adjustment for past due risk	-	(14,461)	-	(14,461)	-	(16,632)	-	(16,632)
Experience settings	(160,247)	-	-	(160,247)	(213,641)	-	-	(213,641)
Changes related to future services	4,793	49,649	34,814	89,256	5,008	47,790	17,841	70,639
Contracts initially recognised in the year	(79,247)	44,528	82,983	48,264	(100,582)	40,538	169,655	109,611
Changes in estimates adjusting the CSM	84,040	5,121	(48,169)	40,992	105,590	7,252	(151,814)	(38,972)
Changes related to past services	(73,578)	(35,600)	-	(109,178)	(18,611)	(32,086)	-	(50,697)
Adjustments to liabilities for incurred claims	(74,030)	(35,600)	-	(109,630)	(17,211)	(32,086)	-	(49,297)
Adjustments to the remaining hedging liability	452	-	-	452	(1,400)			(1,400)
Financial income / expense from	19,112	3,346	1,018	23,476	6,079	505	1,574	8,158
reinsurance contracts
Cash flow	218,864	-	-	218,864	270,703	-	-	270,703
Changes to the scope	-	-	-	-	2,486	428	334	3,248
Reinsurance contract assets/(Reinsurance
contract liabilities) as of 31 December	491,818	70,608	132,078	694,504	482,874	67,674	103,432	653,980

14.a.3.2) Direct holding contracts

For contracts measured under VFA, the reconciliation from opening to closing balances, broken down by measurement component for 2024 and 2023, is shown below:

		2024			2023
Occident - Life VFA	Estimation of the current	Non financial risk	CSM	Total	Estimation of the current	Non financial risk	CSM	Total
Insurance contracts issued	value of FCF	adjustment			value of FCF	adjustment
Insurance contract liabilities/(Insurance contract assets) as at 1 January	736,236	52,012	82,734	870,982	631,131	46,893	94,107	772,131
Changes related to current services	(902)	(3,441)	(6,613)	(10,956)	(5,709)	(2,887)	(5,159)	(13,755)
CSM recognised for services provided	-	-	(6,613)	(6,613)	-	-	(5,159)	(5,159)
Change in non-financial risk
adjustment for past due risk	-	(3,441)	-	(3,441)	-	(2,887)	-	(2,887)
Experience settings	(902)	-	-	(902)	(5,709)	-	-	(5,709)
Changes related to future services	73,628	8,537	(82,165)	-	82,189	6,446	(88,608)	27
Contracts initially recognised in the year	(11,905)	8,832	3,073	-	(9,550)	6,609	3,035	94
Changes in estimates adjusting the CSM	85,533	(295)	(85,238)	-	91,739	(163)	(91,545)	31
Changes in estimates resulting in losses
and reversals of losses on onerous	-	-	-	-	-	-	(98)	(98)
contracts
Changes related to past services	-	-	-	-	-	-	-	-
Adjustments to liabilities for incurred
claims	-	-	-	-	-	-	-	-
Financial income/expenses on insurance
contracts recognised in the income	26,692	3,332	95,364	125,388	8,906	1,560	82,394	92,860
statement
Financial income/expense from
insurance contracts recognised in OCI	-	-	-	-	-	-	-	-
Total changes recognised in the income
statement and other comprehensive	26,692	3,332	95,364	125,388	8,906	1,560	82,394	92,860
income
Other changes	(233)	-	-	(233)	(242)	-	-	(242)
Cash flow	83,986	-	-	83,986	19,961	-	-	19,961
Premiums received	239,517	-	-	239,517	174,424	-	-	174,424
Cash flows from acquisition	(11,789)	-	-	(11,789)	(12,836)	-	-	(12,836)
Benefits and other insurance expenses
paid	(143,742)	-	-	(143,742)	(141,627)	-	-	(141,627)
Changes to the scope	-	-	-	-	-	-	-	-
Insurance contract liabilities/(Insurance
contract assets) as at 31 December	919,407	60,440	89,320	1,069,167	736,236	52,012	82,734	870,982

14.b) Impact of contracts recognised in the year

The following table shows an analysis of the contracts initially recognised in the year, based on whether the groups of contracts are profitable or onerous, as at 31 December 2024 and 31 December 2023, for contracts measured under BBA and VFA:

31 December 2024

	Profitable contracts
		Occident				Occident
	Life Risk	Life Savings	Direct holding contracts	Atradius	Life Risk	Life Savings	Direct holding contracts	Atradius	Total
Estimates of current value of future cash
flow outflows	1,863	264,804	313,775	900,510	5,190	25,178	-	1,127,540	2,638,860
- Acquisition flows	180	7,596	8,992	275,193	837	768	-	242,216	535,782
- Benefits and other directly attributable expenses	1,683	257,208	304,783	625,317	4,353	24,410	-	885,324	2,103,078
Estimates of the current value of future cash flow inflows	(2,101)	(284,440)	(325,680)	(1,215,932)	(5,376)	(26,264)	-	(1,086,224)	(2,946,017)
Non-financial risk adjustment	11	4,922	8,832	57,856	443	3,023	-	79,017	154,104
CSM	227	14,714	3,073	257,566	-	-	-	-	275,580
Increase in insurance contract liabilities
from contracts recognised in the year	-	-	-	-	257	1,937	-	120,333	122,527

31 December 2023

	Profitable contracts
		Occident				Occident
	Life Risk	Life Savings	Direct holding contracts	Atradius	Life Risk	Life Savings	Direct holding contracts	Atradius	Total
Estimates of current value of future cash
flow outflows	4,330	359,020	66,941	1,108,227	2,311	186	146,227	752,232	2,439,474
- Acquisition flows	203	12,411	2,302	287,256	9	9	4,919	146,929	454,038
- Benefits and other directly attributable expenses	4,127	346,609	64,639	820,971	2,302	177	141,308	605,303	1,985,436
Estimates of the current value of future cash flow inflows	(6,747)	(388,065)	(72,860)	(1,544,192)	(2,024)	(173)	(149,858)	(656,122)	(2,820,041)
Non-financial risk adjustment	297	5,082	2,884	60,963	20	-	3,725	37,127	110,098
CSM	2,120	23,963	3,035	375,002	-	-	-	-	404,120
Increase in insurance contract liabilities from contracts recognised in the year	-	-	-	-	307	13	94	133,237	133,651

Atradius records the higher uncertainty observed in the risk environment for the most recent months in the estimates of future cash flows. This is why Atradius shows losses at initial recognition. If these risks do not materialise, these insurance contracts become profitable.

14.c) Future contractual service margin income

The following table shows the expected income statement recognition of the contractual service margin at 31 December 2024 and 31 December 2023 for direct insurance contracts:

2024	Less than 1 year	Between 1 and 5 years	More than 5 years	Total
Occident	66,635	109,397	175,770	351,802
Life Risk	5,084	15,593	23,131	43,808
Life Savings	16,184	51,516	150,974	218,674
Direct holding contracts	45,367	42,288	1,665	89,320
Atradius	122,129	97,746	12,065	231,940
Total CSM by insurance contracts	188,764	207,143	187,835	583,742

2023	Less than 1 year	Between 1 and 5 years	More than 5 years	Total
Occident	59,971	108,509	161,897	330,377
Life Risk	5,538	16,432	32,640	54,610
Life Savings	21,325	46,590	125,118	193,033
Direct holding contracts	33,108	45,487	4,139	82,734
Atradius	118,383	89,005	10,749	218,137
Total CSM by insurance contracts	178,354	197,514	172,646	548,514

14.d) Evolution of the incurred claims liability

The evolution in Occident of non-life insurance and in Atradius of the incurred claims liability constituted at the different gross dates of reinsurance is shown below, according to the occurrence of the claims, based on the benefits paid and the reserve available for them after the closing dates. The evolution for Occident's life insurance is not shown as there is no uncertainty as to the time and amount of payment and as the claims are immediately payable.

	Year of occurrence
MOTOR	2019	2020	2021	2022	2023	2024	Total
Estimated claims measurement (gross of reinsurance, undiscounted, including other directly attributable claims management related expenses)
At the end of the year of occurrence	489,629	423,747	468,115	499,104	529,814	539,790
1 year later	471,872	381,380	441,152	484,414	528,797
2 years later	450,190	361,855	418,765	482,282
3 years later	435,728	345,315	412,215
4 years later	424,783	341,184
5 years later	421,061
Gross cumulative amounts paid (claims and other directly attributable expenses)	405,412	317,848	373,741	411,831	414,369	288,046	2,211,247
Gross reinsurance claims liabilities - years of occurrence from 2019 to 2024	15,649	23,336	38,474	70,451	114,428	251,744	514,082
Gross reinsurance claims liabilities - prior years of occurrence							45,000
Liabilities for internal gross reinsurance claims							17,586
settlement expenses
Discounting effect							(22,054)
Effect of non-financial risk adjustment							29,705
Gross reinsurance incurred claims liabilities							584,319

	Year of occurrence
MULTI-RISK	2019	2020	2021	2022	2023	2024	Total
Estimated claims measurement (gross of reinsurance, undiscounted, including other directly attributable claims management related expenses)
At the end of the year of occurrence	363,857	380,211	400,656	458,743	480,744	449,771
1 year later	358,852	362,993	392,730	458,618	478,837
2 years later	352,192	360,649	390,243	461,572
3 years later	348,613	360,843	390,128
4 years later	344,832	361,125
5 years later	345,255
Gross cumulative amounts paid (claims and other directly attributable expenses)	339,788	353,578	378,625	435,510	440,530	300,984	2,249,015
Gross reinsurance claims liabilities - years of occurrence from 2019 to 2024	5,467	7,547	11,503	26,062	38,307	148,787	237,673
Gross reinsurance claims liabilities - prior years of occurrence							14,437
Liabilities for internal gross reinsurance claims settlement expenses							5,130
Discounting effect							(9,350)
Effect of non-financial risk adjustment							29,580
Gross reinsurance incurred claims liabilities							277,470

	Year of occurrence
VARIOUS	2019	2020	2021	2022	2023	2024	Total
Estimated claims measurement (gross of reinsurance, undiscounted, including other directly attributable claims management related expenses)
At the end of the year of occurrence	184,695	173,674	160,706	153,450	169,855	187,253
1 year later	167,385	147,020	150,653	154,272	177,204
2 years later	154,885	145,400	155,582	163,631
3 years later	153,873	146,720	158,337
4 years later	153,931	147,548
5 years later	154,895
Gross cumulative amounts paid (claims and other directly attributable expenses)	146,021	134,995	139,060	128,546	132,102	91,397	772,121
Gross reinsurance claims liabilities - years of occurrence from 2019 to 2024	8,874	12,553	19,277	35,085	45,102	95,856	216,747
Gross reinsurance claims liabilities - prior years of occurrence							48,898
Liabilities for internal gross reinsurance claims settlement expenses							5,564
Discounting effect							(14,919)
Effect of non-financial risk adjustment							19,049
Gross reinsurance incurred claims liabilities							275,339

	Year of occurrence
ATRADIUS	2019	2020	2021	2022	2023	2024	Total
Estimated claims measurement (gross of reinsurance, undiscounted, including other directly attributable claims management related expenses)
At the end of the year of occurrence	-	502,253	555,967	751,052	1,026,736	1,071,707
1 year later	15,662	394,339	420,691	690,454	964,103
2 years later	28,475	401,661	407,972	657,370
3 years later	23,929	384,093	365,046
4 years later	16,496	364,604
5 years later	1,756
Gross cumulative amounts paid (claims and other directly attributable expenses)	7,416	344,257	335,433	631,260	739,608	706,792	2,764,766
Gross reinsurance claims liabilities - years of occurrence from 2019 to 2024	(5,660)	20,347	29,613	26,110	224,495	364,915	659,820
Gross reinsurance claims liabilities - prior years of occurrence							80,605
Liabilities for internal gross reinsurance claims							-
settlement expenses
Discounting effect							(14,335)
Effect of non-financial risk adjustment							117,355
Gross reinsurance incurred claims liabilities							843,445

14.e) Acquisition cash flows

The reconciliation of the opening and closing balance of the assets to the insurance acquisition cash flows for 2024 and 2023 is presented below:

	2024
	Occident
	Life			Non-Life
	Life Risk	Others Life	Motor	Multi-risk	Other miscellan eous	Atradius	Total
Opening balance	1,983	664	43,058	83,408	29,648	12,831	171,592
New acquisition costs	83,112	9,847	129,826	244,880	120,521	13,084	601,270
Amount derecognised during the period due to contract group assignment	(79,813)	(9,885)	(120,141)	(239,105)	(117,651)	(12,831)	(579,426)
Impairment losses	60	6	184	208	73	-	531
Closing balance	5,342	632	52,927	89,391	32,591	13,084	193,967

	2023
	Life		Non-Life
	Life Risk	Others Life	Motor	Multi-risk	Other miscellan eous	Atradius	Total
Opening balance	6,266	636	41,025	79,363	23,953	11,132	162,375
New acquisition costs	60,506	9,824	126,778	223,962	114,367	12,831	548,268
Amount derecognised during the period due to contract group assignment	(64,779)	(9,790)	(124,811)	(220,011)	(109,332)	(11,132)	(539,855)
Impairment losses	(10)	(6)	66	94	660	-	804
Closing balance	1,983	664	43,058	83,408	29,648	12,831	171,592

As the maturity of these is in the short term, it is expected that the recognition of their derecognition will take place within one year at the latest from the current closing date.

15. Non-technical provisions

The breakdown as of 31 December 2024 and 2023 is as follows:

	Ū thousand
	31/12/2024	31/12/2023
Provisions for pensions and similar obligations	94,187	94,776
Temporary income - indemnities for termination	-	-
Other commitments with the personnel	7,385	12,721
Provisions for liabilities	354	1,281
Provisions for restructuring	53,007	113,064
Litigation/Legal	18,543	21,053
Other provisions	2,120	2,333
Total	175,596	245,228

Besides the stipulations noted in Note 11 and those that correspond to the nature of the insurance business which are duly measured and included, where necessary, in the claims provisions, the Group has no significant claims, lawsuits or court processes which individually imply damage or that may affect the consolidated financial statements as well as contingent liabilities that could involve the Group in law suits or involve the imposition of sanctions or penalties with a significant effect on the company's Equity.

With the aim of achieving a better organisational adaptation after the corporate unification of Occident, the execution of the voluntary incentive redundancy plan agreed with the Trade Union Sections that hold the majority of the unitary representation began, with 399 terminations of contracts in the 2024 financial year (89 terminations in the 2023 financial year), thus reaching the business goal during 2024, with the maximum limit of 488 terminations between the two financial years.

The contract terminations are part of the Occident merger and will take place in 2023 and 2024. The amount estimated and provisioned for this item at 31 December 2024 amounts to Ū53 million (Ū113 million at 31 December 2023).

In relation to the inspection report issued on 13 September 2023 by the DGSFP to the insurer Seguros Catalana Occidente, S.A.U. de Seguros y Reaseguros (currently Occident GCO, S.A.U de Seguros y Reaseguro), and following the analysis and interpretation of the resolution of this inspection, said company lodged an appeal with respect to some of the points of said resolution. The possible and different interpretations of the points indicated in the resolution of the DGSFP and their resolution could finally result in economic obligations for this Group insurer.

Likewise, on 8 March 2024 an inspection report was receivedby insurance company Nortehispana de Seguros y Reaseguros, S.A.U. (currently Occident GCO, S.A.U de Seguros y Reaseguro) from the DGSFP, the purpose of which is the analysis of the underwriting, management and settlement of claims in the funeral branch.

As a result of the above, a provision for risks and other legal contingencies of Ū14 million has been set up.

On 31 December 2024 and 2023, the commitments are reflected in the provision for pensions, and similar obligations are detailed as follows:

	2024 (Ū thousand)			2023 (Ū thousand)
	Provision Contributed Total		Provision Contributed		Total
	defined	defined	Commitments	defined	defined	Commitments
Commitments for pensions
Accrued by active personnel	142,392	37,771	180,163	167,603	29,489	197,092
Caused by passive personnel	237,206	-	237,206	211,362	-	211,362
Total Obligations	379,598	37,771	417,369	378,965	29,489	408,454
Assets affected by the plan Affected assets Atradius N.V, Assets not recognised Atradius N.V. Dutch Plan	323,182 -	- -	323,182 -	313,678 -	- -	313,678 -
Total assets	323,182	-	323,182	313,678	-	313,678
Provisions for pensions and similar obligations	56,416	37,771	94,187	65,287	29,489	94,776

Assets and liabilities for pension obligations relate mainly to assets and liabilities for defined benefit plans.

During 2024 there was a significant change in the UK defined benefit pension plan. An agreement has been reached to insure the pension liabilities of this plan, through a buy-in policy. This policy transfers the demographic and financial risks to an insurance company, Pension Insurance Corporation ("PIC").

The buy-in assets of the policy (Ū230.3 million) have been transferred to PIC, leaving a surplus (Ū43.9 million) within Atradius. The annual policy provides cash flows equivalent to the accrued pension liabilities with an IAS 19 value of Ū186.5 million. In addition, due to this transaction, there has been an impact on the statement of gross recognised income and expense (Ū(45.6) million).

The main defined benefit plans as at 31 December 2024 are in the UK, Germany and Spain, representing 90% (2023: 90%) of the assets derived from pension commitments and 88% (2023: 88%) of the defined benefit obligations recorded as liabilities. The remaining plans are in Italy, Switzerland, Belgium, Norway, France and Mexico with defined benefit liabilities between Ū1.2 million and Ū6.6 million (2023: between Ū0.8 million and Ū6.0 million) and the number of participants is between 13 and 443 persons (2023: between 13 and 451).

Defined benefit plans expose the Group primarily to investment market risk, interest rate risk and inflation risk:

• a decrease in the market value of assets will impact the balance sheet liabilities and cash flows for those countries where there is a minimum funding requirement;
• a decrease in corporate bond yields will lead to an increase in plan liabilities, even if the effect is partially mitigated by an increase in the value of plan bonds; and
• an increase in the rate of inflation will lead to an increase in plan liabilities and, consequently, an increase in company contributions in those plans where there is a minimum funding requirement.

The following table summarises the conciliation, the funding status and the amounts recognised in the consolidated balance sheet as of 31 December 2024 for defined benefit obligations (in Ū thousand):

	Securities of defined benefit		Fair value of assets affected		Impact of the minimum requirement / Limit of		Net (Asset)/ liability of the provision defined
	2024	2023	2024	2023	the asset 2024	2023	2024	2023
Balance at 1 January	378,868	380,456	313,678	304,815	(97)	(60)	65,287	75,701
Reclassification of plans	-	-	-	-	-	-	-	-
Included in profit and
loss:
Cost of services for the current financial year	5,466	4,525	-	-	-	-	5,466	4,525
Cost for past services	-	-	-	-	-	-	-	-
Cost of past services -
Recalculation of pension commitments	(871)	-	-	-	-	-	(871)	-
Cost (Income) of the interest	15,474	16,171	17,911	17,733	-	-	(2,437)	(1,562)
Administration costs	4	4	-	-	-	-	4	4
Total included in profit
and loss	20,073	20,700	17,911	17,733	-	-	2,162	2,967
Included in OCI:
Revaluation loss (gain):
Actuarial loss (gain) by:
- Demographic assumption	(560)	(4,306)	-	-	-	-	(560)	(4,306)
- Financial assumption	(17,132)	(665)	-	-	-	-	(17,132)	(665)
- Experience
adjustments	19,417	(675)	-	-	-	-	19,417	(675)
- adjustments for defined benefit
restrictions on net assets	-	-	-	-	-	-	-	-
Input of assets affected
by the plan, excluding income of interest (*)	-	-	(58,262)	7,035	-	-	58,262	(7,035)
Changes in
unrecoverable surplus
other than interest	-	-	-	-	(163)	(37)	163	37
Total included in OCI	1,725	(5,646)	(58,262)	7,035	(163)	(37)	60,150	(12,644)
Others:
Contributions paid by
the employer	(4,561)	(4,334)	10,797	7,796	-	-	(15,358)	(12,130)
Contributions from the
participants	615	606	615	606	-	-	-	-
Benefits paid	(18,757)	(14,409)	(14,523)	(13,402)	-	-	(4,234)	(1,007)
Settlement (**)	-	(3,106)	-	(3,106)			-	-
Effect of exchange rate
fluctuations	8,278	4,030	12,659	5,404	-	-	(4,381)	(1,374)
Excess asset reclassifications	-	-	47,849	(13,203)	-	-	(47,849)	13,203
Additional profits/losses	639	571	-	-	-	-	639	571
Others	(7,542)	-	(7,542)				-
Total Other	(21,328)	(16,642)	49,855	(15,905)	-	-	(71,183)	(737)
Balance on 31 December	379,338	378,868	323,182	313,678	(260)	(97)	56,416	65,287

(*) In 2024, this includes the impact on income and expenses of the UK buy-in of Ū(45.7) million.

(**) In 2023, this includes the settlement of the Swedish pension plan (Ū0.5 million defined benefit obligation).

Financial instruments not qualified as plan assets

The Group has pension-related assets which under IAS 19 cannot be recognised as plan assets (more details on plans below).

In Germany, for one of the plans, assets of Ū13.4 million (Ū12.1 million in the 2023 financial year) are recognised as cash and cash equivalents. In 2023 assets of Ū1 million were recognised as part of financial investments due to the fact that, in case of bankruptcy, these assets are not fully insured for the members of the pension plans; in 2024, no assets have been recognised as financial investments. In the United Kingdom, there are financial investments amounting to Ū26.4 thousand (Ū26.8 thousand in 2023) in a deposit escrow account to support the pension fund for this country. In the event of insolvency, the Trustee of the pension fund has the rights to these investments, provided certain conditions are met.

The net pension plan assets correspond to the surplus of the UK pension plan, which at 31 December 2024 is Ū46,691 thousand (Ū94,540 thousand in 2023) and is recorded as assets arising from pension commitments (see Note 12).

Actuarial profit and loss

In 2024 actuarial gains (net) have been recognised in OCI amounting to (Ū60,659) thousand (gains (net) of Ū10,707 thousand in 2023), of which (Ū60,150) thousand are associated with net defined benefit liabilities (assets) (Ū12,644 thousand in 2023).

Characteristics of the main defined benefit plans

The following table highlights the main characteristics of defined benefit plans:

Characteristic	United Kingdom	Germany	Spain
Commitment	Right to pension based on a percentage of the final salary (closed to new employees).	Right to pension based on a percentage of the average salary for the past 10 years.	Post employment: Retirement awards, post retirement life insurance, annuities, amount EX GAN, Christmas hamper, holiday insurance.
			Long-term: permanence awards.
Census	66 active (2023: 74 active members).	479 active (2023: 479 active members).	2,577 active (2023: 2,965 active members).
	698 inactive (*) (2023: 556 inactive members).	520 inactive (2023: 500 inactive members).	526 inactive (2023: 913 inactive members).
Securities of defined benefit	Ū179.9 million (2023: Ū167.5 million).	Ū117.4 million (2023: Ū117 million).	Ū34.8 million (2023: Ū34.1 million).
Plan Assets	Ū223.4 million (2023: Ū258 million).	Ū100.8 million (2023: Ū89.7 million).	Plan 0 assets. Reimbursement rights Ū13.1 million (2023: Ū13.0 million).
Revaluation profits (losses) in OCI	Ū57 million - loss (**) (2023: Ū6.5 million–loss)	Ū1 million - profit (2023: Ū3.3 million - profit).	Ū2.0 million - profit (2023: Ū0.3 million– loss).
Instruments	The basis of the financing agreement for both commitments is borne by the Trust Deed and Rules. The Pension Fund performs actuarial measurements every three years in order to determine the contributions to be made by the employer.	A contractual agreement is established as a funding vehicle to cover part of the pension liability. There is no specific financing agreement although the assets must not exceed Ū39.2 million financed initially.	The commitments are externalised through linked insurance policies and with the company itself.
Contributions paid by the employee	In 2024, the contributions amounted to 7.1% (2023: 7.1%) of the pensionable salary.	None, all contributions are made by the contributor.	None, all contributions are made by the contributor.
ALM Strategy	In 2024, the pension plan invested in an insurance policy (buy in). As a result, the assets of the pension plan were transferred to the insurer in kind. There was a surplus of assets in the pension plan that were not needed to finance the buy-in, which are held in cash as an interim investment strategy.	The investment goals and policies are developed on the basis of an ALM study. The investment policy limits the interest rate risk by restricting the investment in bonds to fixed interest bonds. The risk of variable income is controlled in accordance with the Dow Jones Euro Stoxx 50 index.	N/A.
Regulatory Framework	The UK pension scheme is subject to UK pension legislation and guidelines issued by the Pensions Regulator in the UK.	The German pension plan is subject to German pension legislation and guidelines issued by the German Pension Regulator.	The Spanish pension plan is subject to Spanish pension legislation and guidelines issued by the Spanish Pension Regulator.

(*) The increase in the number of inactive members in the UK in 2024 is due to the transfer of MPlan members to the UKPS pension scheme as part of the buy-in process. This table only shows UKPS plan members in 2023, as this was the main UK scheme.

(**) In 2024, this includes the impact on the statement of recognised income and expense of the UK buy-in of Ū(45.7) million.

Fair value of assets affected

The fair value of plan assets at year end is analysed in the following table (in Ū thousand):

Plan Assets	2024	2023
Cash and cash equivalents	35,512	12,515
Variable income	25,694	28,843
Fixed income	75,718	220,671
Investment funds	-	10,004
Insurance contracts	186,258	41,645
Real estate assets	-	-
Total	323,182	313,678

All equities and government bonds are traded in active markets. The plan assets do not include any instrument of the Group's own equity nor any property occupied or other assets used by the Group. As a result of the transaction described above, the assets associated with the Dutch Pension Fund have been liquidated and transferred to the aforementioned insurance company.

The current return on plan assets in the 2024 financial year was a loss of Ū(40.3) million (profit of Ū24.75 million in the financial year 2023).

The main assumptions used in 2024 and 2023 for the major defined benefit plans are as follows:

Main actuarial	United Kingdom		Germany		Spain
assumptions	2024	2023	2024	2023	2024	2023
Discount rate	5.50%	4.75%	3.50%	3.25%	3.32%	3.54%
Inflation rate	3.50%	3.25%	2.00%	2.25%	2.00%	2.25%
Expected increase of future wages	3.25%	3.00%	2.55%	2.80%	2.00%	2.00%
Expected increase in levels of future profits	3.20%	2.89%	1.75%	2.00%	N/A	N/A
Mortality table	CMI 2023 (1% LTR)	CMI 2022 (1% LTR)	Heubeck Richttafeln	Heubeck Richttafeln	PER 2020 Col 1st Order PASEM - 2020 Rel 1st Order	PER 2020 Col 1st Order PASEM - 2020 Rel 1st Order
Duration	13	14	12	13	14	14

Discount rate breakdowns were obtained by hypothetical yield curves developed from information provided by the yield of corporate bonds in the reference market. According to international standards defined under IAS 19, the definition of these curves is based on the performance of AA credit quality corporate bonds.

Possible reasonable changes at year-end in one of the main assumptions, holding other assumptions constant, would have the following effect on the value of obligations (in Ū thousand):

Securities of defined benefit	2024		2023
	Increase	Decrease	Increase	Decrease
Discount rate (1% movement)	(34,166)	41,802	(36,436)	43,480
Inflation rate (1% movement)	31,930	(28,910)	33,411	(28,423)
Wage growth rate (1% movement)	4,022	(3,648)	6,971	(6,305)
Expected increase in levels of future profits (1% movement)	31,828	(27,196)	31,781	(26,943)
Future mortality (+ 1 year)	10,608	-	9,502	-

The aforementioned sensitivity analysis has been obtained using the "Projected Unit Credit" calculation method, and we have proceeded to replicate the calculation of obligations by changing a variable and leaving all other actuarial assumptions constant. A limitation of this method is that some of the variables may be correlated. There has been no change in the methods and assumptions used in preparing the sensitivity analysis for previous years.

16. Equity attributed to parent company shareholders

As part of the consolidated financial statements, the Group presents a statement of changes in consolidated equity which shows, among other things:

• – The year's results derived from the profit and loss account,
• – Each of the year's income and expense items which, according to IFRS has been reflected directly in the net equity,
• – The total of the year's income and expenses (result of adding the two previous sections), showing separately the total amount attributed to shareholders of the parent company and minority shareholders,
• – The effects of changes in accounting policies and the correction of errors in each of the net equity components, if any,
• – The amounts of transactions that holders of net equity instruments have undertaken as, for example, capital contributions, the repurchase of own shares held in treasury and dividend distributions, showing these distributions separately, and
• – The balance of retained earnings at the beginning of the year and the balance sheet date, and changes during the year.

The Group also separately details all income and expenses that have been recognised during the year, either through the profit or loss account or directly to equity. This statement is called "Recognised income and expenses statement" and is supplementary to the information provided in the net equity change status.

16.a) Capital

The parent company's subscribed capital stands at Ū36,000 thousand consisting of 120,000,000 fully subscribed and paid in book entry shares of Ū0.30 par value each represented in book-entry form. All shares have the same rights, and the parent company may issue shares without voting rights.

The shareholders owning 10% or more of the parent company's share capital on 31 December 2024 were as follows:

	Percentage of holding
Inoc, S.A.	36.94%
La Previsión 96, S.A.	25.09%

The shareholding percentage of the former shareholders has not changed in any way with respect to the percentage at 31 December 2023.

The company Inoc, S.A., which owns 72.25% of La Previsión 96, S.A., directly and indirectly holds 55.06% of the parent company and belongs to a group whose parent company is CO Sociedad de Gestión y Participación, S.A.

16.b) Share premium and reserves

The statement of changes in equity attached to these financial statements details the balances of the share premium and retained earnings at the beginning of 2024 and at 31 December 2024, and the movements during the year.

The breakdown of the share premium and each type of reserve as of 31 December 2024 and 2023 is as follows:

	Ū thousand
	Balances on 31/12/2024	Balances on 31/12/2023
Share issue premium	1,533	1,533
Differences from adjustment of capital to euros	61	61
Legal reserve	7,212	7,212
Other reserves	4,312,325	3,917,889
Reserves	4,319,598	3,925,162
Total share premium and Reserves	4,321,131	3,926,695

16.b.1) Share issue premium

The balance of the type of reserves, according to the revised text of the Capital Companies Law can be used to expand capital. No restriction whatsoever is established for its availability.

16.b.2) Differences from adjustment of capital to euros

The balance of this reserve comes from the capital reduction carried out in FY 2001 as a result of changing corporate capital to euros. Availability is subject to the same requirements as the legal reserve.

16.b.3) Legal reserve

Under the Consolidated Text of the Capital Companies Law 10% of profit for each year must be transferred to the legal reserve until the balance of this reserve reaches at least 20% of share capital. The legal reserve may be used to increase share capital, providing that the remaining balance is no less than 10% of the increased share capital. Only for this purpose and as long as it does not exceed 20% of the corporate capital, this reserve con only be used to offset losses, as long as there are no other sufficient reserves available for this. At the various dates presented, the amount of this reserve accounted for 20% of the share capital.

16.c) Stocks and Treasury Shares

The balance of this subheading, which is the result of deducting the equity attributable to the shareholders of the parent company from the consolidated balance sheet on 31 December 2024, and 2023, in accordance with the reporting requirements established by IAS 32, which corresponds to the shares of Grupo Catalana Occidente, S.A. property of the subsidiary Sociedad Gestión Catalana Occidente, S.A.U.

On 31 December 2024, the total of Group shares owned by the subsidiary Sociedad Gestión Catalana Occidente, S.A.U. represents 1.65% of the capital issued as of that date (1.65% as of 31 December 2023). During the 2024 financial year, the percentage of shares outstanding held by the above company has remained at 1.65% calculated on a daily basis. The average price of the portfolio as of 31 December 2024 was Ū11.52 per share (Ū11.52 per share on 31 December 2023). These shares are available-for-sale in order to safeguard liquidity. There are no more Grupo Catalana Occidente S.A. shares held by other Group companies or third parties that operate on their behalf. Additionally, on 31 December 2024, neither the parent company, nor the companies of the Group held obligations based on the payment of shares of the parent company.

The development of acquisitions and sales carried out during the 2024 and 2023 financial years has been as follows:

	Ū thousand
	Cost of acquisition	Nominal value	Number of shares
Balances on 1 January 2023	22,787	593	1,977,283
Additions	-	-	-
Withdrawals	-	-	-
Balances on 31 December 2023	22,787	593	1,977,283
Additions	-	-	-
Withdrawals	-	-	-
Balances on 31 December 2024	22,787	593	1,977,283

16.d) Distribution of profits

The Board members will propose to the shareholders at the Annual General Meeting that the 2024 profit of Grupo Catalana Occidente, Sociedad Anónima would be distributed as follows:

	Year 2024
Distribution	Ū thousand
To dividends	71,280
To voluntary reserves	126,028
Net profit for the year	197,308

The distribution of profit for 2023 approved by the parent company's General Meeting, held 25 April 2024 is as follows:

	Year 2023
Distribution	Ū thousand
To dividends	64,800
To voluntary reserves	67,473
Net profit for the year	132,273

Previously, the Board of Directors of the parent company, at its meetings held on 29 June 2023, 28 September 2023 and 25 January 2024, resolved to distribute, with a charge to reserves, the amount of Ū69,336 thousand, which was paid in several instalments on 12 July 2023, 11 October 2023 and 7 February 2024.

The consolidated net profit of 2023 is detailed in the statement of changes in equity.

16.e) Dividends

Governing Body:	Date of Agreement:	Date of Payment:	Type of Dividend:	Per share in euros	Total in Ū thousand
Board of Directors	25 January 2024	7 February 2024	Dividend charged to reserves	0.1926	23,112
General Shareholders' Meeting	25 April 2024	8 May 2024	2023 final dividend	0.5400	64,800
Board of Directors	27 June 2024	10 July 2024	Dividend charged to reserves	0.2070	24,840
Board of Directors	26 September 2024	9 October 2024	Dividend charged to reserves	0.2070	24,840
					137,592

The various amounts paid by shareholders in 2024 as dividends is as follows:

The completed dividend payouts during 2024 comply with the requirements and limitations established by the current legal framework and the Articles of Association in the parent company.

In addition, the Company's Board of Directors, at its meeting held on 30 January 2025, resolved to distribute a dividend charged to reserves amounting to Ū24,840 thousand which was paid on 12 February 2025.

The decision to distribute dividends is based on a thorough, reflective analysis of the Group's situation, does not compromise either the Group's future solvency or the protection of policyholders' and insured party's interests, and is made in the context of the supervisors' recommendations on this matter.

16.f) Earnings per share

Basic earnings per share are determined by dividing net income attributable to equity holders of the parent by the weighted average number of ordinary shares outstanding during the year, excluding the average number of treasury shares held during the year.

This calculation is illustrated as follows:

	2024	2023
Net profit attributable to equity holders of the parent company	636,449	580,598
(thousands of euros)
Average weighted number of shares issued (thousands of shares)	120,000	120,000
Less: Weighted treasury shares (thousands of shares) (*)	(1,977)	(1,977)
Average weighted number of shares outstanding (thousands of shares)	118,023	118,023
Earnings per share (Euros)	5.39	4.92

(*) Refers to treasury shares held in treasury stock for 2024 and 2023.

As there are no stock options, warrants or other equivalent instruments that might cause a potential dilutive effect, the earnings per share figure is the same as the diluted earnings per share in the different periods presented.

16.g) Other accumulated comprehensive income

The comprehensive income accumulated outside of the profit and loss account includes the amounts relative to income and expenses charged directly to equity, broken down between items that were not reclassified to profits and those that can be subsequently reclassified to profits.

The main items that can be subsequently reclassified to profit or loss include: changes in the measurement of debt instruments held in the 'assets at fair value through other comprehensive income' portfolio, changes in the measurement for financial risk of insurance contracts issued and reinsurance contracts issued as well as those associated with exchange differences on translation of balances held in foreign currencies of this portfolio and of foreign subsidiaries of Atradius N.V.

Other accumulated comprehensive income - Items that may be subsequently reclassified to profits by:

	Ū thousand
	Balances at 31/12/2024	Balances at 31/12/2023
Changes in the fair value of debt instruments measured at
fair value through other comprehensive income	24,852	(40,334)
Exchange rate differences	40,189	7,484
Changes in the fair value of issued insurance contracts	8,571	93,139
Changes in the fair value of reinsurance contracts held	7,321	1,301
Entities accounted for using the equity method	(9,119)	(7,625)
Other adjustments	-	-
Other accumulated comprehensive income	71,814	53,965

Changes in the fair value of debt instruments measured at fair value through other comprehensive income

This item mainly includes the net amount of changes in the fair value of debt instruments classified as 'Financial assets at fair value through other comprehensive income' which, in accordance with Note 3.b.4, are classified as part of the Group's consolidated equity. These changes are recognised in the consolidated profit and loss account when the assets from which they arise are sold.

Exchange rate differences

This item includes exchange-rate differences arising mainly on non-monetary items whose fair value is adjusted with a balancing entry in equity.

Changes in the fair value of insurance contracts issued and reinsurance contracts held

For portfolios whose accounting policy option is "Other comprehensive income", this item includes changes attributable to market variables, i.e. changes in the discount rate and interest credited for the difference between the current market rate and the initial recognition rate.

Entities accounted for using the equity method

Includes income and expenses charged directly to net equity derived from holdings in entities measured using the equity method.

Other accumulated comprehensive income - Items that cannot be reclassified to profits by:

Equity instruments measured at fair value through other comprehensive income

This item mainly includes the net amount of changes in the fair value of equity instruments classified, under irrevocable option, as 'Financial assets at fair value through other comprehensive income' which, in accordance with Note 3.b.4, are classified as part of the Group's consolidated equity. These changes are recognised in consolidated reserves when the assets from which they arise are sold, as there is no possibility of recycling.

Actuarial profit and loss

Includes the actuarial changes that arise when calculating the securities for pensions and the fair value of the assets of the defined benefit plans of the Group, to be recognised in the period in which they occur, different from the reserves constituted by the net amount of income and expenses directly and definitively recognised in the equity. It also includes any reversal of assets that may occur when a plan's assets are greater than the expected benefit obligation and the Group cannot recover any surplus through redemptions of the pension vehicle, due to capital adequacy and control requirements.

The Group reclassified the accumulated balance of this item to Reserves. The gross amount reclassified for the 2024 financial year, as shown in the table of defined benefit obligations in Note 15, amounts to a loss of Ū(60,659) thousand (gain of Ū10,707 thousand net of tax effect).

17. Minority interests

A breakdown of "Minority interests" and "Profit or loss attributable to minority interests" at 31 December 2024 and 2023, by consolidated company, is given below:

	Ū thousand
	31/12/2024		31/12/2023
	Minority Interests	P&L attributable to external partners	Minority interests	P&L attributable to external partners
Atradius N.V. / Grupo Compañía Española de Crédito y	522,788	60,045	496,261	63,429
Caución, S.L.
Grupo Catalana Occidente Tecnología y Servicios, A.I.E.	-	-	-	-
Hercasol, S.A. SICAV	6,535	81	9,103	101
Grupo Mémora	8,824	903	7,879	984
Asistea	-	-	(79)	-
Total	538,147	61,029	513,164	64,514

The movement in "Minority interests" during 2024 and 2023 is shown in the consolidated statement of changes in equity.

18. Financial information by segment

The current management of the business is based on financial information reported in IFRS4 to the Group's management and, therefore, the information by segment and geographical area is broken down under the accounting principles established by said standard, until the management of the business and decision-making are based on financial information reported (including the consolidated management report) under the principles established in IFRS 17 (accounting standards applicable in these financial statements).

The breakdown of the financial information according to the segments defined by the Group is as follows:

	31/12/2024
ASSETS	Occident	Atradius	Mémora	TOTAL
Cash and other equivalent liquid assets	697,444	695,187	34,078	1,426,709
Other financial assets at fair value through profit or loss	1,072,975	-	-	1,072,975
Available-for-sale financial assets	7,742,401	3,304,003	3,605	11,050,009
Loans and receivables	2,112,050	11,964	(404,652)	1,719,362
Reinsurance share of technical provisions	156,461	1,133,533	-	1,289,994
Property, plant and equipment and investment property	1,091,167	170,930	170,787	1,432,884
Intangible fixed assets	308,909	539,292	748,242	1,596,443
Holdings in group companies and associates	13,862	104,511	6,602	124,975
Tax assets	236,702	136,017	36,409	409,128
Other assets	214,996	624,771	4,757	844,524
Assets held for sale	-	-	-	-
TOTAL ASSETS IFRS 4	13,646,967	6,720,208	599,828	20,967,003
Reconciliation adjustments			(1,721,588)
TOTAL ASSETS IFRS 17			19,245,415

LIABILITIES AND EQUITY	Occident	Atradius	Mémora	TOTAL
Debts and items payable	201,972	847,972	485,939	1,535,883
Technical provisions	9,121,001	3,512,754	-	12,633,755
Non-technical provisions	157,442	37,511	1,292	196,245
Tax liabilities	356,584	196,736	64,860	618,180
Other liabilities	23,970	181,952	8,429	214,351
Liabilities linked to assets held for sale	-	-	-	-
Net equity	3,785,998	1,943,283	39,308	5,768,589
TOTAL LIABILITIES AND EQUITY IFRS 4	13,646,967	6,720,208	599,828	20,967,003
Reconciliation adjustments				(1,721,588)
TOTAL LIABILITIES AND EQUITY IFRS 17				19,245,415

	31/12/2023
ASSETS	Occident	Atradius	Mémora	TOTAL
Cash and other equivalent liquid assets	647,638	694,239	31,865	1,373,742
Other financial assets at fair value through profit or loss	869,799	-	-	869,799
Available-for-sale financial assets	7,182,192	2,856,863	4,539	10,043,594
Loans and receivables	2,203,310	(160,374)	(407,421)	1,635,515
Reinsurance share of technical provisions	160,734	1,084,477	-	1,245,211
Property, plant and equipment and investment property	924,409	182,937	135,561	1,242,907
Intangible fixed assets	316,974	535,515	738,875	1,591,364
Holdings in group companies and associates	12,320	100,280	6,476	119,076
Tax assets	275,267	152,043	39,553	466,863
Other assets	191,921	622,575	4,480	818,976
Assets held for sale	-	-	-	-
TOTAL ASSETS IFRS 4	12,784,564	6,068,555	553,928	19,407,047
Reconciliation adjustments			(1,787,924)
TOTAL ASSETS IFRS 17				17,619,123

LIABILITIES AND EQUITY	Occident	Atradius	Mémora	TOTAL
Debts and items payable	120,488	755,636	445,039	1,321,163
Technical provisions	8,795,725	3,239,863	-	12,035,588
Non-technical provisions	211,472	54,296	1,365	267,133
Tax liabilities	335,113	160,827	66,091	562,031
Other liabilities	19,104	179,451	8,341	206,896
Liabilities linked to assets held for sale	-	-	-	-
Net equity	3,302,662	1,678,482	33,092	5,014,236
TOTAL LIABILITIES AND EQUITY IFRS 4	12,784,564	6,068,555	553,928	19,407,047
Reconciliation adjustments				(1,787,924)
TOTAL LIABILITIES AND EQUITY IFRS 17				17,619,123

The breakdown of earned premiums in 2024 and 2023, and all other income and expense items, grouped according to the main business segments is as follows:

	2024 Financial year (Ū thousand)
		Occident
	Motor	Multi-risk	Various others	Life	Atradius	Total
Earned premiums from direct business and accepted reinsurance	722,597	856,859	736,933	845,443	2,296,311	5,458,143
Premiums attributed to transferred reinsurance	(20,259)	(42,036)	(62,043)	(6,293)	(801,446)	(932,077)
Income from property, plant and equipment and investments	41,635	32,618	42,952	312,180	138,208	567,593
Income from investments assigned to insurance policies
in which policyholders bear the investment risk	-	-	-	125,461	-	125,461
Other technical income	-	-	32	3	248,618	248,653
Claims incurred in the year, net of reinsurance	(543,095)	(456,147)	(349,700)	(876,586)	(708,392)	(2,933,920)
Change in other technical provisions, net of reinsurance	-	-	(19,032)	(95,401)	-	(114,433)
Provision for policyholder dividends and return premiums	-	-	(952)	(30,115)	-	(31,067)
Net operating expenses	(146,282)	(265,038)	(195,274)	(77,491)	(578,544)	(1,262,629)
Other technical expenses	10,208	(1,268)	(2,107)	(1,805)	(17,648)	(12,620)
Expenses arising from property, plant and equipment and investments	(17,713)	(13,061)	(12,372)	(61,066)	(58,360)	(162,572)
Expenses from investments assigned to insurance policies
in which policyholders bear the investment risk	-	-	-	(73)	-	(73)
Technical-financial profit/(loss)	47,091	111,927	138,437	134,257	518,747	950,459

	2023 Financial year (Ū thousand)
	Occident
	Motor	Multi-risk	Various others	Life	Atradius	Total
Earned premiums from direct business and accepted reinsurance	677,352	796,697	690,960	844,221	2,285,157	5,294,387
Premiums attributed to transferred reinsurance	(20,093)	(44,009)	(58,088)	(9,842)	(852,824)	(984,856)
Income from property, plant and equipment and investments	34,465	29,293	35,760	253,410	127,389	480,317
Income from investments assigned to insurance policies in which policyholders bear the investment risk	-	-	-	116,806	-	116,806
Other technical income	-	-	26	7,536	236,982	244,544
Claims incurred in the year, net of reinsurance	(480,036)	(449,381)	(315,440)	(1,014,377)	(665,026)	(2,924,260)
Change in other technical provisions, net of reinsurance	-	-	(21,971)	96,196	-	74,225
Provision for policyholder dividends and return premiums	295	-	(920)	(30,857)	-	(31,482)
Net operating expenses	(150,355)	(247,647)	(188,656)	(75,476)	(550,296)	(1,212,430)
Other technical expenses	(3,397)	(1,781)	(2,291)	(2,889)	(28,226)	(38,584)
Expenses arising from property, plant and equipment and investments	(17,138)	(14,878)	(12,578)	(47,191)	(64,801)	(156,586)
Expenses from investments assigned to insurance policies
in which policyholders bear the investment risk	-	-	-	(15,506)	-	(15,506)
Technical-financial profit/(loss)	41,093	68,294	126,802	122,031	488,355	846,575

Below is an explanation of the main changes in the accounting for insurance contracts established in IFRS 17 compared to IFRS 4:

• Under the heading "Financial assets at amortised cost", those previously referred to as "Loans and receivables" are grouped together, with the exception of the instalment of premiums to be written, classified in IFRS 4 under the asset heading "Receivables from direct insurance operations", which in IFRS 17 is classified under the liability heading "Liabilities for remaining hedges".
• IFRS 17 introduces the heading "Assets under insurance contracts", which mainly classifies consumer credit contracts (ICP) from Atradius, where premium and recovery flows exceed payment and expense flows.
• The accrual of acquisition commissions and expenses, classified in IFRS 4 under "Other assets", is classified in IFRS 17 under the liability item "Liabilities for remaining hedges".
• The impact on OCI mainly comprises two components: i) Changes in value of the investment portfolio classified at fair value with changes in other comprehensive income and ii) Changes in value of liabilities between the initial recognition rate (the so-called "locked-in-rate") and the current rate.
• Under IFRS 17, the Group no longer applies the shadow accounting approach. This has an impact on "Other comprehensive income" and "Other liabilities" with a corresponding deferred tax impact.
• Insurance service income: Income from premiums is replaced by changes in the liability for the remaining coverage in the BBA and VFA models, including the recognition of the service margin earned on insurance contracts (CSM). In the PAA model, the insurance service income is similar to the earned premium concept under IFRS4.
• Insurance finance income and expenses: includes the effect of credited interest on the current value of the associated future cash flows, on the non-financial risk adjustment and on the CSM of insurance contract liabilities, as well as the effect of discount rate restatement for insurance contract liabilities measured under BBA/VFA and allocated to the income statement.

Additionally, at balance sheet level, the above changes imply, in terms of presentation, both in assets and liabilities, the replacement of the current headings of "Reinsurance participation in technical provisions" and "Technical provisions" by "Assets/liabilities under reinsurance contracts held" and "Assets/liabilities under insurance contracts issued", respectively.

With regard to IFRS 9, the heading mainly impacted by the application of this standard is that of financial assets at fair value through profit or loss, which increases its value due to the reclassification of those assets that do not pass the SPPI test, such as investment funds and certain fixed income instruments and deposits, which were valued through adjustments for changes in value in equity.

On the other hand, the Group has managed contributions to pension plans and investment funds, not reflected in the consolidated profit and loss account, amounting to Ū50,573 thousand during the 2024 financial year and Ū38,602 thousand during the 2023 financial year.

In the profit and loss account of the Atradius business line for the financial years 2024 and 2023, under the item "Other technical income", the income from services of Atradius N.V. is included as follows:

	Ū thousand
	Year 2024	Year 2023
Collection and recovery services	61,878	61,238
Information services and commissions	150,063	143,812
Other income for services	36,677	31,932
Total "Other technical income" - Atradius	248,618	236,982

A breakdown of staff costs for 2023 and 2024 and allocation to the profit and loss for each segment is shown below:

	Ū thousand
	Year 2024	Year 2023
Wages and Salaries	512,242	510,583
Social Security	110,907	110,975
Contributions to external pension funds	31,982	33,232
Awards and Prizes	2,764	9,094
Other personnel costs	21,610	23,293
Total	679,505	687,177

Destination for personnel		Occident
expenses - Year 2024	Non-Life	Life	Other activities	Atradius	Mémora	Total
Claims incurred in the year, net of reinsurance	25,625	347	-	17,798	-	43,770
Expenses arising from property, plant and equipment and investments	903	1,551	-	-	-	2,454
Net operating expenses	120,437	22,184	-	345,789	-	488,410
Other expenses	698	406	29,125	31,929	82,713	144,871
Total net	147,663	24,488	29,125	395,516	82,713	679,505

Destination for personnel	Occident
expenses - Year 2023	Non-Life	Life	Other activities	Atradius	Mémora	Total
Claims incurred in the year, net of	30,069	648	-	18,463	-	49,180
reinsurance
Expenses arising from property,
plant and equipment and	1,045	1,867	-	-	-	2,912
investments
Net operating expenses	143,775	25,877	-	330,568	-	500,220
Other expenses	2,083	682	24,121	28,976	79,003	134,865
Total net	176,972	29,074	24,121	378,007	79,003	687,177

18.a) Information by geographical area

18.a.1) Net premiums earned under reinsurance by geographical area

The territorial distribution of premiums earned net of reinsurance during 2024 and 2023 was as follows:

	Earned premiums in the period, net of reinsurance per geographical area
	Year 2024				Year 2023
Geographical Area	Occident				Occident
	Non-Life	Life	Atradius	TOTAL	Non-Life	Life	Atradius	TOTAL
Domestic market	2,157,764	836,050	223,074	3,216,888	2,008,278	830,930	217,741	3,056,949
International market
a) European Union
a.1) Euro zone	16,310	-	772,923	789,233	18,583	-	730,030	748,613
a.2) Non-Euro zone	-	-	100,989	100,989	-	-	98,280	98,280
b) Other	17,977	3,100	397,879	418,956	15,958	3,449	386,282	405,689
Total IFRS 4	2,192,051	839,150	1,494,865	4,526,066	2,042,819	834,379	1,432,333	4,309,531
Reconciliation adjustments				(251,849)				(197,892)
Total IFRS 17			4,274,217				4,111,639

18.a.2) Assets by geographical area

The distribution of the Group's assets by geographical location, based on the location of the service centres where the Group's insurance and complementary businesses are managed, is as follows:

	Spain	The Netherlands and Scandinavian countries	Central and Eastern Europe, Greece and Turkey	Southern Europe	United Kingdom and Ireland	North America	Oceania, Asia and other emerging countries	Total
Assets IFRS 4 as at 31/12/2024	13,461,881	1,643,436	1,178,754	1,603,572		1,364,142 1,073,738	641,480	20,967,003
	Reconciliation adjustments						(1,721,588)
	TOTAL ASSETS IFRS 17							19,245,415
Assets IFRS 4 as at 31/12/2023	11,910,602	1,526,803	1,148,150	1,518,006	1,733,868	940,149	629,469	19,407,047
							Reconciliation adjustments	(1,787,924)
							TOTAL ASSETS IFRS 17	17,619,123

19. Profit before tax under IFRS 17 and IFRS 9

The profit before tax, considering the applicability of IFRS 17 and IFRS 9, is presented below for 2024 and 2023 on a segment basis:

		2024 Financial year (Ū thousand)
		Occident	Atradius	Mémora	Total
1.	Insurance service income	2,610,802	2,307,491	-	4,918,293
	a) Income from contracts measured under the general method (BBA) and equity method (VFA)	186,902	2,307,491	-	2,494,393
	a.1) Amounts related to changes in the liability for the remaining coverage	186,431	1,669,752	-	1,856,183
	- Expected benefits and expenses	137,720	1,385,331	-	1,523,051
	- Changes in the risk adjustment for non-financial risk	16,282	76,046	-	92,328
	- CSM recognised for services provided	32,429	208,375	-	240,804
	a.2) Release (recovery) of acquisition costs allocated to the period	471	518,536	-	519,007
	a.3) Adjustment of experience related to current services	-	119,203	-	119,203
	b) Contract income measured under the simplified approach (PAA)	2,423,900	-	-	2,423,900
2.	Insurance service expenses	(2,233,580)	(1,738,209)	-	(3,971,789)
	a) Benefits and expenses incurred	(1,562,649)	(1,413,302)	-	(2,975,951)
	b) Acquisition costs	(606,438)	(529,669)	-	(1,136,107)
	c) Change in liability for incurred claims	(64,493)	204,762	-	140,269
	A) PROFIT/(LOSS) ASSOCIATED WITH INSURANCE CONTRACTS ISSUED	377,222	569,282	-	946,504
3.	Reinsurance expenses	(135,557)	(508,519)	-	(644,076)
4.	Income from reinsurance recoveries	103,354	306,705	-	410,059
B) PROFIT/(LOSS) ASSOCIATED WITH REINSURANCE		(32,203)	(201,814)	-	(234,017)
	CONTRACTS HELD
5.	C) PROFIT/(LOSS) OF THE INSURANCE SERVICE (A + B) Income from interest	345,019 176,267	367,468 63,950	- 527	712,487 240,744
6.	Income from dividends	59,416	20,636	315	80,367
7.	Net gain / (loss) on financial instruments	129,859	(421)	(1,852)	127,586
8.	Reversal / (loss) for impairment of financial instruments	(2,746)	(118)	-	(2,864)
9.	Net gain / (loss) for exchange rate	(1,200)	3,760	(3)	2,557
10.	Other financial income / (expenses)	46,827	417	(18,566)	28,678
	Income / (expenses) from property, plant and equipment
11.	and investment property	33,209	(1,091)	(15,018)	17,100
12.	Profits/(losses) of entities accounted for using the equity method	1,656	13,757	337	15,750
	D) NET INVESTMENT PROFIT/(LOSS)	443,288	100,890	(34,260)	509,918
	Financial income / (expenses) for insurance associated with
13.	insurance contracts issued	(306,693)	(55,761)	-	(362,454)
14.	Financial income / (expenses) associated with reinsurance	1,486	12,742	-	14,228
	contracts held E) TOTAL FINANCIAL INCOME OR EXPENSES FOR INSURANCE	(305,207)	(43,019)	-	(348,226)
	F) NET INSURANCE AND INVESTMENT PROFIT/(LOSS) (C+D+E))	483,100	425,339	(34,260)	874,179
15.	Other income	12,483	264,751	265,896	543,130
16.	Other expenses	(80,169)	(201,721)	(212,731)	(494,621)
	G) PROFIT BEFORE TAX	415,414	488,369	18,905	922,688

		2023 Financial year (Ū thousand)
		Occident	Atradius	Mémora	Total
1.	Insurance service income	2,468,005	2,300,395	-	4,768,400
	a) Income from contracts measured under the general	186,668	2,300,395	-	2,487,063
	method (BBA) and equity method (VFA)
	a.1) Amounts related to changes in the liability for the	185,009	1,570,971	-	1,755,980
	remaining coverage
	- Expected benefits and expenses	141,946	1,256,075	-	1,398,021
	- Changes in the risk adjustment for non-financial risk	12,103	103,256	-	115,359
	- CSM recognised for services provided	30,960	211,640	-	242,600
	a.2) Release (recovery) of acquisition costs allocated to the period	1,659	522,486	-	524,145
	a.3) Adjustment of experience related to current services	-	206,938	-	206,938
	b) Contract income measured under the simplified approach (PAA)	2,281,337	-	-	2,281,337
2.	Insurance service expenses	(2,152,450)	(1,623,182)	-	(3,775,632)
	a) Benefits and expenses incurred	(1,605,837)	(1,100,696)	-	(2,706,533)
	b) Acquisition costs	(580,090)	(522,486)	-	(1,102,576)
	c) Change in liability for incurred claims	33,477	-	-	33,477
	A) PROFIT/(LOSS) ASSOCIATED WITH INSURANCE CONTRACTS ISSUED	315,555	677,213	-	992,768
3.	Reinsurance expenses	(134,730)	(522,031)	-	(656,761)
4.	Income from reinsurance recoveries	110,163	259,923	-	370,086
	B) PROFIT/(LOSS) ASSOCIATED WITH REINSURANCE	(24,567)	(262,108)	-	(286,675)
	CONTRACTS HELD
	C) PROFIT/(LOSS) OF THE INSURANCE SERVICE (A + B)	290,988	415,105	-	706,093
5.	Income from interest	152,025	35,102	615	187,742
6.	Income from dividends	55,058	14,113	40	69,211
7.	Net gain / (loss) on financial instruments	128,659	7,686	(6)	136,339
8.	Reversal / (loss) for impairment of financial instruments	(858)	4,566	-	3,708
9.	Net gain / (loss) for exchange rate	171	(3,455)	(2)	(3,286)
10.	Other financial income / (expenses)	32,897	(319)	(18,194)	14,384
11.	Income / (expenses) from property, plant and equipment and investment property	5,557	676	(15,779)	(9,546)
	Profits/(losses) of entities accounted for using the equity
12.	method	1,735	11,266	287	13,288
	D) NET INVESTMENT PROFIT/(LOSS)	375,244	69,635	(33,039)	411,840
13.	Financial income / (expenses) for insurance associated with	(275,099)	(45,353)	-	(320,452)
	insurance contracts issued Financial income / (expenses) associated with reinsurance
14.	contracts held	1,088	10,454	-	11,542
	E) TOTAL FINANCIAL INCOME OR EXPENSES FOR INSURANCE	(274,011)	(34,899)	-	(308,910)
	F) NET INSURANCE AND INVESTMENT PROFIT/(LOSS) (C+D+E))	392,221	449,841	(33,039)	809,023
15.	Other income	13,598	245,200	233,154	491,952
16.	Other expenses	(75,222)	(200,882)	(186,470)	(462,574)
	G) PROFIT BEFORE TAX	330,597	494,159	13,645	838,401

20. Related-party transactions

All related party transactions have been carried out under market conditions.

20.a) Breakdown of related parties

During 2024, there have been no relevant transactions by the company with other companies in the same Group that have not been eliminated in the process of producing the consolidated financial statements and that do not form part of the normal business of the company.

The detail of the most significant balances and transactions maintained by the Group with various related parties are shown below:

In Ū thousand	Group companies	Associated companies	Administrators and Directors	Other related parties (majority shareholder)
ASSETS
Receivables	32,352	157	-	-
Total	32,352	157	-	-
LIABILITY
Payables	86,065	1	-	-
Loans	365,231	-	-	-
Total	451,296	1	-	-
PROFIT AND LOSS
Provision of services (payments)	-	(73,536)	-	-
Provision of services (charges)	8,375	16,962	-	-
Interest on loans	(16,920)	-	-	-
Sale of holdings	5,315	-	-	-
Dividends received	229,689	-	-	-
Total	226,459	(56,574)	-	-
OTHER
Dividends paid	-	-	3,584	85,354
Total	-	-	3,584	85,354

20.b) Board Members' and Senior Management's remuneration and other benefits

The General Shareholders' Meeting held on 25 April 2024 agreed on the remuneration for all directors, in their capacity as such, for the 2024 financial year, established the allowances for attending Board meetings, the maximum annual amount of remuneration for all directors, in their capacity as such, for the 2024 financial year and submitted the Annual Report on Directors' Remuneration in the 2023 financial year to the consultative vote of the General Shareholders' Meeting.

As at 31 December 2024, the Board of Directors of the parent company consists of 9 individual directors, 6 men and 3 women (9 individual directors, 6 men and 3 women as at 31 December 2023).

The members of the Board of Directors have received the following amounts for 2024 and 2023 for the items specified in the following detail:

		Ū thousand
Members of the Board of Directors	Year 2024	Year 2023
Concept
Fixed remuneration	611	834
Variable remuneration	281	257
Allowances	343	380
Statutory attentions	2,079	2,079
Others	19	71
Total	3,333	3,621

Board Members' remuneration

In addition, non-consolidated deferred variable remuneration amounts to Ū87 thousand.

Other provisions for members of the Board of Directors

	Ū thousand
Members of the Board of Directors	Year 2024	Year 2023
Other benefits	-	-
Advances	-	-
Loans granted	-	-
Pension schemes and funds: Contributions	-	-
Pension schemes and funds: Liabilities incurred	-	-
Life insurance premiums	108	104
Guarantees provided in favour of Board Members	-	-
Total	108	104

Remuneration of members of the Senior Management, excluding members of the Board of Directors

Senior Management is considered to be those executives who report directly to the Board or to the chief executive of the company and, in any case, the internal auditor.

The members of Senior Management received the following remuneration for the financial years 2024 and 2023:

	Ū thousand
Senior Management	Year 2024	Year 2023
Total remuneration received by Senior Management	4,546	4,275

In addition, non-consolidated deferred variable remuneration amounts to Ū586 thousand.

In the preparation of these consolidated financial statements and for the purposes of the above table, 8 persons (6 men and 2 women) have been considered as Senior Management personnel as at 31 December 2024 (8 persons (6 men and 2 women) as at 31 December 2023). Of the above 8 persons, 5 persons (3 men and 2 women) are employed in the parent company.

The Group has taken out two civil liability insurance contracts where the policyholder is the parent company that encompasses, among other workers, the Directors and Board Members of the Group. These policies have generated an insurance premium expense in 2024 of Ū94 thousand.

On 31 December 2024 and 2023 there have been no advances or loans granted by the Parent company to the members of the Board of Directors, nor have any liabilities been incurred by these members as security.

Under Article 229 of the Capital Companies Law, approved by Royal Decree 1/2010 of 2 July, Board members and people linked to them must notify the Board any conflict of interests that they may have with the company.

The members of the Board of Directors and the persons related to them, as defined in art. 529 vicies of the Consolidated Text of the Capital Companies Law (TRLSC in Spanish), have not carried out relatedparty transactions other than those established in article 529 unvicies 4 b) TRLSC, that is, those whose standardised conditions are applied en masse to a large number of customers, are carried out at prices or rates established generally by whoever acts as supplier of the goods or service in question, and whose amount does not exceed 0.5 per cent of the net turnover of the parent company.

Pursuant to the same article, these transactions have been authorised in accordance with an internal reporting and periodic control procedure established by the Board of Directors with the prior intervention of the Audit Committee.

21. Other Information

21.a) Employees

In compliance with Article 260 of the revised text of the Capital Companies Law, the Group provides the following breakdown of the average number of full-time employees (or equivalent) of the parent and its subsidiaries in 2024 and 2023 by job category and gender.

Professional category	Year 2024			Year 2023
	Men	Women	Total	Men	Women	Total
Executives	131	27	158	145	27	172
Intermediate management	1,094	626	1,720	1,176	604	1,780
Qualified admin. and sales	2,193	2,358	4,551	2,392	2,336	4,728
Administrative support	1,082	1,160	2,242	940	995	1,935
Total	4,500	4,171	8,671	4,653	3,962	8,615

The total number of employees as at 31 December 2024 is 8,876 (8,881 as at 31 December 2023).

With regards to disability, the Group complies with the LISMI (Law on social integration of disabled people) in different ways, either complying with the requirement to integrate 2% of the staff with a disability, or opting for a mixed formula between this integration and economic support of Special Employment Centres.

21.b) Audit fees

The fees for auditing and other services provided by the auditor of the Group's consolidated annual accounts, PricewaterhouseCoopers Auditores, S.L. and by firms belonging to the PwC network, as well as the fees for services billed by the auditors of the individual annual accounts of the companies included in the consolidation and by the entities related to them by control, common ownership or management, are shown below:

Year 2024

	Ū thousand
Description	Services provided by PwC Auditores S.L. (*)	Services provided by entities in the PwC network (*)	Services provided by the main auditor and its network (*)	Services provided by other audit firms (*)
Audit Services	2,945	2,065	5,010	63
Other services required by regulations	908	-	908	-
Other verification services	227	6	233	5
Tax services	-	-	-	-
All other services	110	154	264	-
Total Professional Services	4,190	2,225	6,415	68

(*) Amounts without expenses or VAT.

Year 2023

	Ū thousand
Description	Services provided by PwC Auditores S.L. (*)	Services provided by entities in the PwC network (*)	Services provided by the main auditor and its network (*)	Services provided by other audit firms (*)
Audit Services	2,629	2,253	4,882	138
Other services required by regulations	905	-	905	-
Other verification services	281	6	287	5
Tax services	-	-	-	-
All other services	5	124	129	-
Total Professional Services	3,820	2,383	6,203	143

(*) Amounts without expenses or VAT.

The section "Other services required by regulations" mainly includes the fees for the review of the Report on the financial position and solvency of the Group and its subsidiaries, as well as the independent external assurance service under limited assurance of the Statement of Non-Financial Information (NFI), among others.

The main items included under "Other assurance services" correspond to the issuance of the agreedupon procedures report on the Group's Internal Control over Financial Reporting System (ICFR) and the limited review of the consolidated condensed interim financial statements for the year, among others. No services of a tax nature have been provided to Group entities. Similarly, "Other services" includes the fees for other services provided to Group entities that do not fall into the other categories indicated.

21.c) Information on the average period of payment to suppliers

The information required by the third additional provision of Law 15/2010, of 5 July (amended by the second final provision of Law 31/2014, of 3 December and the third additional provision of Law 18/2022, of 28 September) prepared in accordance with the Resolution of the ICAC of 29 January 2016, on the information to be included in the notes to the annual accounts in relation to the average period of payment to suppliers in commercial transactions, is detailed below.

	Days
	2024	2023
Average payment period to suppliers	22.13	21.17
Ratio of transactions paid	22.00	21.10
Ratio of outstanding transactions	25.00	23.86

	2024	2023
Total payments made (Ū thousand)	528,868	530,792
Total payments made within the regulatory deadline (Ū thousand)	465,172	464,036
Percentage over total payments made to suppliers	88.0%	87.4%
Total payments pending (Ū thousand)	24,937	13,538
Total number of invoices paid	160,058	179,832
Number of invoices paid within the deadline established in regulations	135,886	149,717
Percentage on the total number of invoices	84.9%	83.3%

According to the ICAC resolution, for the calculation of the average period of payment to suppliers, the commercial operations corresponding to the delivery of goods or services payable from the date of entry into force of the Law 31/2014, of 3 December were taken into consideration.

On 31 December 2024, the Group does not have pending payments to suppliers beyond the legal term deferral balance.

22. Subsequent events

In addition to the dividend charged to reserves mentioned in Note 16, no other events not explained in previous notes have occurred after the year end and up to the date of preparation of these financial statements that significantly affect them.

Appendices

Appendix I: List of subsidiaries on 31 December 2024

Appendix II: List of associated entities on 31 December 2024

Appendix I: List of subsidiaries on 31 December 2024

(Figures in Ū thousand)

Company		% of voting rights		Summarised financial information
(Name and address)	Activity	Direct	Indirect	Total	Total assets	Share Capital	Equity reserves	Year result, net of dividend	Other accumulated comprehensi ve income	Income
Occident GCO, S.A.U. de Seguros y Reaseguros Méndez Álvaro, 31 Madrid	Insurance and reinsurance	100%	-	100%	11,854,098	18,030	907,537	291,186 (1)	723,782	3,044,567
Grupo Compañía Española de Crédito y Caución, Sociedad Limitada Méndez Álvaro, 31 Madrid	Holds shares	73.84%	-	73.84%	645,219	18,000	624,891	1,204 (2)	-	177,907
Atradius N.V. y sociedades dependientes David Ricardostraat, 1 1066 JS Amsterdam (Holland)	Credit and surety insurance and complementary insurance activities	35.77%	47.43%	83.20%	6,058,671	79,122	2,424,183	369,009	47,942	2,307,492
Sociedad Gestión Catalana Occidente, S.A.U. Méndez Álvaro, 31 Madrid	Financial investments	100%	-	100%	59,968	721	56,095	3,120	-	3,432
Cosalud Servicios, S.A.U. Avenida Alcalde Barnils, 63 Sant Cugat del Vallés (Barcelona)	Intermediation of health centres	-	100%	100%	7,656	3,005	2,526	252	(62)	192
Grupo Catalana Occidente Gestión de Activos S.A.U., S.G.I.I.C. Méndez Álvaro, 31 Madrid	Financial investments	100%	-	100%	7,655	391	5,640	359 (3)	207	17,543
Occident Pensiones E.G.F.P., S.A.U. Méndez Álvaro, 31 Madrid	Pension fund management	100%	-	100%	3,934	2,500	465	290	23	7,047
Grupo Catalana Occidente, Tecnología y Servicios, A.I.E. Avenida Alcalde Barnils, 63 Sant Cugat del Vallés (Barcelona)	Auxiliary insurance services	0.42%	99.54%	99.96%	100,676	35,826	497	127	-	117,270
GCO Ventures, S.L.U. Avenida Alcalde Barnils, 63 Sant Cugat del Vallés (Barcelona)	Corporate venturing	100%	-	100%	33,239	3,500	29,861	(1,499)	407	336
Mémora Servicios Funerarios, S.L.U. y sociedades dependientes Paseo Zona Franca (torre Auditori), 111, 8ª planta Barcelona	Funeral services	100%	-	100%	779,143	13,106	199,119	15,091	-	266,038

(Figures in Ū thousand)

Company			% of voting rights		Summarised financial information
(Name and address)	Activity	Direct	Indirect	Total	Total assets	Share Capital	Equity reserves	Year result, net of dividend	Other accumulated comprehensi ve income	Income
Grupo Catalana Occidente Contact Center, A.I.E. Jesús Serra Santamans, 3 - 4ª planta Sant Cugat del Vallés (Barcelona)	Telephone attention	-	100%	100%	2,414	600	90	-	-	10,552
Occident GCO Capital, Agencia de Valores, S.A.U. Avenida Alcalde Barnils, 63 Sant Cugat del Vallés (Barcelona)	Stock broker	-	100%	100%	3,534	300	2,455	554	(2)	1,664
Prepersa, Peritación de Seguros y Prevención, A.I.E. Jesús Serra Santamans, 1 Sant Cugat del Vallés (Barcelona)	Prevention and loss adjustment	-	100%	100%	3,341	60	1,014	338	-	7,721
Occident GCO Mediadores, Sociedad de Agencia de Seguros, S.A.U. Avenida Alcalde Barnils, 63 Sant Cugat del Vallés (Barcelona)	Insurance broker	-	100%	100%	3,182	60	796	367	-	16,238
Occident Inversions, S.A.U. Avinguda Carlemany, 65 Escaldes Engordany (Andorra)	Creation, management and operation of insurance entities	-	100%	100%	8,063	60	298	-	-	3,817
Calboquer, S.L.U. Villarroel, 177-179 Barcelona	Medical, social, psychological, and legal advice	-	100%	100%	413	90	591	(575)	-	40
Occident Hipotecaria, S.A.U., E.F.C. Avenida Sabino Arana, 20, 1ª planta Bilbao	Mortgage Credit	-	100%	100%	50,137	8,000	1,529	326	-	2,849
S. Órbita, Sociedad Agencia de Seguros, S.A.U. Avenida Sabino Arana, 20, 1ª planta Bilbao	Insurance broker	-	100%	100%	2,499	1,100	480	7	-	-
Occident Direct, S.L.U. Avenida Alcalde Barnils, 63 Sant Cugat del Vallés (Barcelona)	Telemarketing	-	100%	100%	805	37	254	42	-	1,527
Nortehispana Mediacion, Agencia De Seguros S.A.U. Méndez Álvaro, 31 Madrid	Insurance broker	-	100%	100%	3,356	60	1,240	633	-	23,374
Hercasol, S.A. SICAV Avenida Diagonal, 399 Barcelona	Financial investments	-	92.10% (*)	92.10% (*)	80,570	57,792	14,413	8,268	-	9,098
Grupo Catalana Occidente Activos Inmobiliarios S.L.U. Avenida Alcalde Barnils 63 Sant Cugat del Vallés (Barcelona)	Real Estate Development	-	100%	100%	571,946	174,436	319,769	10,412	41,780	21,431

• (*) Only the shares outstanding have been taken into account to determine the share percentage. Likewise, the value of treasury shares has been deducted from the above equity reserves.
• (1) The Company has recognised an increase in the stabilisation reserve for an amount of Ū19,110 thousand.
• (2) The Company paid an interim dividend of Ū174,870 thousand.
• (3) The Company paid an interim dividend of Ū1,800 thousand.

The financial information indicated for the above companies included in the scope of consolidation (total assets, share capital, equity reserves, profit for the year net of dividends and income) has been obtained from the latest available individual or consolidated financial statements for the 2024 financial year, prepared in accordance with the regulatory financial reporting framework applicable to each of the companies. These financial statements have been duly adapted by each company to the Group's accounting policies. The financial statements of the above companies are for the period ended 31 December 2024.

The figures for Atradius N.V. include the data for their subsidiaries relating to the profit or loss for the year and equity reserves.

At 31 December 2024, the list of subsidiaries of Atradius N.V., which are wholly owned unless otherwise indicated, is as follows:

Company	Country	Company	Country
Atradius Collections B.V.	The Netherlands	Atradius Crédito y Caución Seguradora S.A	Brazil
Branch in Belgium	Belgium	Atradius Dutch State Business N.V.	The Netherlands
Branch in Czech Republic	Czech Republic	Atradius Debt Collections Services L.L.C.	Dubai (EAU)
Branch in Denmark	Denmark	Atradius Enterprise Management Consulting (Shanghai) Co., Ltd	China
Branch in France	France	Atradius Information Services B.V	The Netherlands
Branch in Germany	Germany	Branch in Belgium	Belgium
Branch in Hungary	Hungary	Branch in Denmark	Denmark
Branch in Ireland	Ireland	Branch in France	France
Branch in Italy	Italy	Branch in Germany	Germany
Branch in Poland	Poland	Branch in Ireland	Ireland
Branch in Portugal	Portugal	Branch in Italy	Italy
Branch in Turkey	Turkey	Branch in Japan	Japan
Atradius Collections DMCC	UAE	Branch in Norway	Norway
Atradius Collections Holding B.V.	The Netherlands	Branch in Spain	Spain
Atradius Collections Limited	Canada	Branch in Sweden	Sweden
Atradius Collections Limited	Hong Kong	Branch in Switzerland	Switzerland
Atradius Collections Limited	United Kingdom	Branch in Taiwan	Taiwan
Atradius Collections Pte. Limited	Singapore	Branch in Thailand	Thailand
Atradius Collections Pty. Limited	Australia	Branch in the United Kingdom	United Kingdom
Atradius Collections Serviços de Cobranças de Dívidas Ltda	Brazil	Atradius Information Services Vietnam Company Limited	Vietnam
Atradius Collections, S.A. de C.V.	Mexico	Atradius Participations Holding S.L.U.	Spain
Atradius Collections S.L.	Spain	Atradius Insurance Holding N.V.	The Netherlands
Atradius Collections, Inc.	EU	Atradius Italia Intermediazioni S.R.L	Italy
Atradius Corporate Management Consulting (Shanghai) Co. Ltd.	China	Atradius India Credit Management Services Private Ltd.	India
Atradius Credit Insurance Agency, Inc.	EU	Atradius Pension Trustees Ltd.	United Kingdom
Atradius Credit Management Services B.V.	The Netherlands	Atradius Escritório de Representação no Brasil Ltda.	Brazil
Atradius Credit Managemente Services (RUS) LLC	Russia	Atradius Seguros de Crédito, S.A.	Mexico
Atradius Crédito y Caución S.A. de Seguros y Reaseguros	Spain	Atradius Trade Credit Insurance, Inc.	EU
Branch in Australia	Australia	Atradius Trade Insurance Brokerage Yuhan Hoesa	South Korea
Branch in Austria	Austria	B2B SAFE, S.A.	Spain
Branch in Belgium	Belgium	Crédito y Caución do Brasil Gestao de Riscos de Crédito e Serviços LTDA	Brazil
Branch in Bulgaria	Bulgaria	Iberinform Internacional S.A.U.	Spain
Branch in Canada	Canada	Branch in Portugal	Portugal
Branch in Czech Republic	Czech Republic	Iberinmobiliaria, S.A.U.	Spain
Branch in Denmark	Denmark	Informes México, S.A. de C.V.	Mexico
Branch in Finland	Finland	Pakula, Podebski i Wspólnicy Kancelaria Prawna spólka komandytowa (*)	Poland
Branch in France	France	PRO KOLEKT CCR d.o.o.	Slovenia
Branch in Germany	Germany	352 .2/(.7 &UHGLW 0DQDJHPHQW 6HUYLFHV %XFXUHŁWL Srl	Romania
Branch in Greece	Greece	PRO KOLEKT d.o.o.	Croatia
Branch in Hong Kong	Hong Kong	"Pro Kolekt" d.o.o. Sarajevo	Bosnia and
Branch in Hungary	Hungary	PRO KOLEKT DOOEL Skopje	Macedonia
Branch in Ireland	Ireland	PRO KOLEKT druĠtvo za naplatu duga doo Beograd	Serbia
Branch in Italy	Italy	PRO KOLEKT Sofia OOD	Bulgaria
Branch in Japan	Japan	PT Atradius Information Services Indonesia	Indonesia
Branch in Luxembourg	Luxembourg	PT Atradius Management Consulting	Indonesia
Branch in The Netherlands	The Netherlands
Branch in New Zealand	New Zealand
Branch in Norway	Norway
Branch in Poland	Poland
Branch in Portugal	Portugal
Branch in Romania	Romania
Branch in Singapore	Singapore
Branch in Slovakia	Slovakia
Branch in Slovenia	Slovenia
Branch in Sweden	Sweden
Branch in Switzerland	Switzerland
Branch in Turkey	Turkey
Branch in the United Kingdom	United Kingdom

Company	Country	Company	Country
Atradius Collections B.V.	The Netherlands	Atradius Crédito y Caución Seguradora S.A	Brazil
Branch in Belgium	Belgium	Atradius Dutch State Business N.V.	The Netherlands
Branch in Czech Republic	Czech Republic	Atradius Debt Collections Services L.L.C.	Dubai (EAU)
Branch in Denmark	Denmark	Atradius Enterprise Management Consulting (Shanghai) Co., Ltd	China
Branch in France	France	Atradius Information Services B.V	The Netherlands
Branch in Germany	Germany	Branch in Belgium	Belgium
Branch in Hungary	Hungary	Branch in Denmark	Denmark
Branch in Ireland	Ireland	Branch in France	France
Branch in Italy	Italy	Branch in Germany	Germany
Branch in Poland	Poland	Branch in Ireland	Ireland
Branch in Portugal	Portugal	Branch in Italy	Italy
Branch in Turkey	Turkey	Branch in Japan	Japan
Atradius Collections DMCC	UAE	Branch in Norway	Norway
Atradius Collections Holding B.V.	The Netherlands	Branch in Spain	Spain
Atradius Collections Limited	Canada	Branch in Sweden	Sweden
Atradius Collections Limited	Hong Kong	Branch in Switzerland	Switzerland
Atradius Collections Limited	United Kingdom	Branch in Taiwan	Taiwan
Atradius Collections Pte. Limited	Singapore	Branch in Thailand	Thailand
Atradius Collections Pty. Limited	Australia	Branch in the United Kingdom	United Kingdom
Atradius Collections Serviços de Cobranças de Dívidas Ltda	Brazil	Atradius Information Services Vietnam Company Limited	Vietnam
Atradius Collections, S.A. de C.V.	Mexico	Atradius Participations Holding S.L.U.	Spain
Atradius Collections S.L.	Spain	Atradius Insurance Holding N.V.	The Netherlands
Atradius Collections, Inc.	EU	Atradius Italia Intermediazioni S.R.L	Italy
Atradius Corporate Management Consulting (Shanghai) Co. Ltd.	China	Atradius India Credit Management Services Private Ltd.	India
Atradius Credit Insurance Agency, Inc.	EU	Atradius Pension Trustees Ltd.	United Kingdom
Atradius Credit Management Services B.V.	The Netherlands	Atradius Escritório de Representação no Brasil Ltda.	Brazil
Atradius Credit Managemente Services (RUS) LLC	Russia	Atradius Seguros de Crédito, S.A.	Mexico
Atradius Crédito y Caución S.A. de Seguros y Reaseguros	Spain	Atradius Trade Credit Insurance, Inc.	EU
Branch in Australia	Australia	Atradius Trade Insurance Brokerage Yuhan Hoesa	South Korea
Branch in Austria	Austria	B2B SAFE, S.A.	Spain
Branch in Belgium	Belgium	Crédito y Caución do Brasil Gestao de Riscos de Crédito e Serviços LTDA	Brazil
Branch in Bulgaria	Bulgaria	Iberinform Internacional S.A.U.	Spain
Branch in Canada	Canada	Branch in Portugal	Portugal
Branch in Czech Republic	Czech Republic	Iberinmobiliaria, S.A.U.	Spain
Branch in Denmark	Denmark	Informes México, S.A. de C.V.	Mexico
Branch in Finland	Finland	Pakula, Podebski i Wspólnicy Kancelaria Prawna spólka komandytowa (*)	Poland
Branch in France	France	PRO KOLEKT CCR d.o.o.	Slovenia
Branch in Germany	Germany	352 .2/(.7 &UHGLW 0DQDJHPHQW 6HUYLFHV %XFXUHŁWL Srl	Romania
Branch in Greece	Greece	PRO KOLEKT d.o.o.	Croatia
Branch in Hong Kong	Hong Kong	"Pro Kolekt" d.o.o. Sarajevo	Bosnia and Herzegovina
Branch in Hungary	Hungary	PRO KOLEKT DOOEL Skopje	Macedonia
Branch in Ireland	Ireland	PRO KOLEKT druĠtvo za naplatu duga doo Beograd	Serbia
Branch in Italy	Italy	PRO KOLEKT Sofia OOD	Bulgaria
Branch in Japan	Japan	PT Atradius Information Services Indonesia	Indonesia
Branch in Luxembourg	Luxembourg	PT Atradius Management Consulting	Indonesia

(*) The percentage of ownership is 99.99%

At 31 December 2024, the list of subsidiaries of the Mémora Group is as follows:

Company	Address	% of voting rights
Mémora Group companies in Spain
Mémora Servicios Funerarios, S.L.U.	Barcelona	100%
Mémora Servicios Funerarios Internacionales, S.L.U.	Barcelona	100%
Serveis Funeraris de Barcelona, S.A.	Barcelona	100%
Transports Sanitaris Parets, S.L.U.	Barcelona	100%
Mémora Serveis Funeraris del Camp, S.L.U.	Barcelona	100%
Portal Funerario, S.L.U.	Barcelona	100%
Olympia Mediación, Agencia de Seguros Exclusiva, S.L.U.	Barcelona	100%
Servicios Funerarios Montero, S.A.U.	Getafe	100%
Tanatorio Donostialdea - Donostialdeko Beilatoki S.A.	San Sebastián	100%
Landarri, S.L.U.	Errenteria	100%
Zentolen Berri, S.A.U.	Errenteria	100%
Flores Mémora, S.L.U.	Barcelona	100%
Tanatorio de Palencia, S.L.U.	Palencia	100%
Asistea Servicios Integrales, S.L.U.	Bilbao	100%
Funerarias Bilbaina y La Auxiliadora S.L.U.	Bilbao	100%
Funeraria Nuestra Señora de los Remedios, S.L.U.	Valdegovia	100%
Funcantabria Servicios Funerarios, S.L.U.	Torrelavega	100%
Funeraria Merino Diez S.L.U.	Santander	100%
Mediagen S.L.U.	Bilbao	100%
Pompas Fúnebres Mediterráneas, S.L.	Barcelona	99.87%
Eurofunerarias, S.A.	Barcelona	92.47%
Servicios Funerarios de Guadalajara Nuestra Señora La Antigua, S.A.	Guadalajara	90.00%
Servicios Funerarios Baztan Bidasoa, S.L.	Elizondo	80.00%
Servicios Funerarios del Torrero, S.A.	Zaragoza	76.00%
Tanatorio SE 30 Sevilla, S.L.	Zaragoza	73.50%
Serveis Funeraris Memora Santa Tecla, S.L.	Tarragona	65.00%
Funeflor, S.L.	Barcelona	60.00%
Mémora Group companies in Portugal
Servilusa Agencias Funerarias, S.A.U.	Alfragide,	100%
	Amadora Alfragide,
Servilusa, Lda.	Amadora	100%
Funelvas. Lda.	Elvas	100%
Servilusa - Centro Funerario de Cascais, Lda.	Cascais	100%
Funeraria Triunfo, Lda.	Lisbon	100%
Crematorio de Leiria, Lda.	Amadora	100%
Crematorio de Santarem, Lda.	Amadora	100%
Funeraria Santos & Filho II, Lda.	Almada	100%
Funerária Central de Valongo de Aloisio Pauperio & Amaro, Lda.	Porto	100%
Crematorio de Faro, Lda.	Faro	100%
Tributo 2013 Unipessoal, Lda.	Lisbon	100%
Agência Funerária Santo André Lda.	Amadora	100%
Servilusa - Crematório de Torres Vedras, Unipessoal, Lda.	Amadora	100%
Agencia Funeraria Belavista, Lda.	Amadora	100%
Servilusa - Centro Funerário da Maia S.A.	Amadora	99.00%
Funfoz, Lda.	Alfragide,	95.00%
	Amadora
Servilusa Crematorio Guimaraes, Lda.	Amadora	95.00%
Servilusa Centro Funerario de Aveiro, Lda.	Amadora	95.00%

	Appendix II: List of associated entities on 31 December 2024
--	--------------------------------------------------------------	--	--

(Figures in Ū thousand)

Company		% of voting rights		Summarised financial information
(Name and address)	Activity	Direct	Indirect	Total	Total assets	Share Capital	Equity reserves	Year result, net of dividend	Other accumulated comprehensi ve income	Income
Inversiones Credere S.A. Santiago - Chile	Holds shares	49.99%	-	49.99%	-	-	-	-	-	-
Asitur Asistencia, S.A. Avenida Encuartes, 21 Tres Cantos (Madrid)	Assistance	-	42.86%	42.86%	59,658	2,945	16,430	3,348	-	374,737
Gesiuris Asset Management, S.G.I.I.C., S.A. Rambla de Cataluña, 38, 9ª planta Barcelona	Investment company	-		26,12% () 26.12% ()	11,698	301	7,966	345 (1)	603	10,182
CLAL Credit Insurance Ltd. Tel Aviv - Israel	Credit and surety insurance	-	16.64%	16.64%	135,339	3,317	79,971	9,126	4,616	16,889
Compañía de Seguros de Crédito Continental S.A. Santiago - Chile	Credit and surety insurance	-	41.60%	41.60%	159,685	3,172	90,070	13,431	(6,492)	13,645
Credit Guarantee Insurance Corporation of Africa Ltd. Johannesburg-South Africa	Credit and surety insurance	-	20.80%	20.80%	152,609	139	63,578	20,867	1,665	58,537
Serfunle, S.A. Avda. Peregrinos, 14 León	Funeral business	-	49%	49%	8,528	2,000	3,676	298	-	5,767
Serveis Funeraris Costa de Barcelona, S.L. Paseo Zona Franca, 111, 8ª planta	Funeral business	-	50%	50%	42	40	30	3	-	-
Barcelona Funerarias Gaditanas Asociadas, S.A. Pol.Las Salinas C/Canales, 7 Cádiz	Funeral business	-	50%	50%	3,459	1,365	345	380	-	1,214

(*) Only the shares outstanding have been taken into account to determine the share percentage. Likewise, the value of treasury shares has been deducted from the above equity reserves.

(1) The Company paid an interim dividend of Ū500 thousand.

The financial information indicated for the above companies included in the scope of consolidation (total assets, share capital, equity reserves, profit for the year net of dividends and income) has been obtained from the latest available individual or consolidated financial statements for the 2024 financial year, prepared in accordance with the regulatory financial reporting framework applicable to each of the companies. These financial statements have been duly adapted by each company to the Group's accounting policies. The financial statements of the above companies are for the period ended 31 December 2024.

IV. Auditor's report

Independent auditor's report Consolidated annual accounts at December 31th, 2024 Consolidated management report

This version of our report is a free translation of the original, which was prepared in Spanish. All possible care has been taken to ensure that the translation is an accurate representation of the original. However, in all matters of interpretation of information, views or opinions, the original language version of our report takes precedence over this translation.

Independent auditor's report on the consolidated annual accounts

To the shareholders of Grupo Catalana Occidente, S.A.:

Report on the consolidated annual accounts

Opinion

We have audited the consolidated annual accounts of Grupo Catalana Occidente, S.A. (the Parent company) and its subsidiaries (the Group), which comprise the balance sheet as at 31 December 2024, and the profit or loss account, statement of comprehensive income, statement of changes in equity, cash flow statement and related notes, all consolidated, for the year then ended.

In our opinion, the accompanying consolidated annual accounts present fairly, in all material respects, the equity and financial position of the Group as at 31 December 2024, as well as its financial performance and cash flows, all consolidated, for the year then ended, in accordance with International Financial Reporting Standards as adopted by the European Union (IFRS-EU) and other provisions of the financial reporting framework applicable in Spain.

Basis for opinion

We conducted our audit in accordance with legislation governing the audit practice in Spain. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the consolidated annual accounts section of our report.

We are independent of the Group in accordance with the ethical requirements, including those relating to independence, that are relevant to our audit of the consolidated annual accounts in Spain, in accordance with legislation governing the audit practice. In this regard, we have not rendered services other than those relating to the audit of the accounts, and situations or circumstances have not arisen that, in accordance with the provisions of the aforementioned legislation, have affected our necessary independence such that it has been compromised.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated annual accounts of the current period. These matters were addressed in the context of our audit of the consolidated annual accounts as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

PricewaterhouseCoopers Auditores, S.L., Torre PwC, Pº de la Castellana 259 B, 28046 Madrid España Tel.: +34 915 684 400 / +34 902 021 111, Fax: +34 915 685 400, www.pwc.es 1

Key audit matters	How our audit addressed the key audit matters
Valuation of liabilities for remaining coverage

The Group operates through three segments, "Occident", "Atradius" and "Memora".

In the activities of the insurance segments, the Group estimates an obligation for liabilities for remaining coverage of 8,030 million euros as of December 31, 2024.

In these liabilities for remaining coverage, the Group records insurance contracts in accordance with the three measurement models established in the applicable regulations, which include: the general model (BBA), the premium allocation approach (PAA) and the variable rate approach (VFA). The model applicable to each group is determined based on the characteristics of said contracts.

The liabilities for remaining coverage recorded in accordance with the BBA and VFA measurement models incorporate components of certain judgment and estimation by management when determining the value of future cash flows (FCF), the determination of the non-financial risk adjustment (RA), the contractual service margin (CSM) and the loss component.

For the reasons set out above, the valuation of the liabilities for remaining coverage has been considered a key audit matter.

See notes 2.h, 3.i, 4.b, and 14 of the attached consolidated financial statements for the year 2024.

We have obtained an understanding of the process for estimating and recording liabilities for remaining coverage, which has included an assessment of the internal control environment, including information system controls related to the valuation and recording of these liabilities.

Our procedures on these liabilities for remaining coverage, in which actuarial specialists and specialists in information systems and processes have participated, have focused on aspects such as:

• Verification of the integrity, accuracy and reconciliation of the data used in the calculation engines of said liabilities at the end of the year.
• Verification the value of future cash flows (FCF) and assumptions applied for a sample of selected products in various units of account and analyzing the change in these during the financial year.
• Verification the methodology and reasonableness of the risk adjustment (RA) for a sample of selected units of account.
• Verification the contractual service margin (CSM) initially recorded for a sample of selected products and analyzing its amortization during the financial year.
• Verification the discount rates used in a sample of selected units of account.
• Verification the information broken down in the attached consolidated financial statements.

In our previous procedures, we have obtained sufficient appropriate audit evidence to support the estimates and approaches determined by management on this matter.

Valuation of liabilities for incurred claims

In the insurance segment activities (Occident and Atradius), the Group estimates an obligation for liabilities for incurred claims of 2,474 million euros as of December 31, 2024.

The estimation of these liabilities for incurred claims is complex, and in the case of certain products of the "Occident" and "Atradius" business, it is significantly influenced by the projection methods used, the claim settlement periods and the assumptions used by management.

For the reasons set out above, the valuation of liabilities for incurred claims has been considered a key audit matter.

See notes 3.i, 4.b, and 14 of the notes to the consolidated annual accounts for the year 2024.

Key audit matters How our audit addressed the key audit matters

We have obtained an understanding of the process for estimating and recording liabilities for incurred claims, which has included an assessment of the internal control environment, including the controls over the information systems related to the valuation and recording of these liabilities.

Our procedures on these liabilities for incurred claims, in which actuarial specialists and specialists in information systems and processes have participated, have focused on aspects such as:

• Verification of the integrity, accuracy and reconciliation of the data used in the calculation systems for these liabilities at the end of the year.
• Verification through actuarial and statistical contrast tests of the reasonableness of a sample of products selected at the end, including the non-financial risk adjustment.
• Verification of the sufficiency of the liabilities for incurred claims established at the end of the annual period.
• Carrying out detailed tests on the liabilities for incurred claims on a case-by-case basis established at the end of the period and payments made during the same, using sampling techniques.
• Verification of the completeness of the disclosures included in the consolidated financial statements.

In our previous procedures, we have obtained sufficient and appropriate audit evidence to support management's estimates on this matter.

Evaluation of Impairment of the consolidated Goodwill and intangible assets arising from business combinations

The Group has recorded consolidation goodwill derived mainly from the acquisition of stakes in the subsidiaries, Atradius NV (€462 million), Occident Seguros (€279 million) and Mémora (€435 million).

As of December 31, 2024, management has assessed the impairment of goodwill and intangible assets, based on the determination of the cash-generating units (CGUs) and estimating their recoverable value, at least annually. To do so, the Group uses internal estimates and valuations carried out by management experts.

These estimates consider market methodologies and incorporate a high level of judgment, since they are based on hypotheses and assumptions determined by management and its experts, such as the cash flows considered, the solvency capital requirements, the discount rate and the long-term growth rate, which is why it has been considered a key audit matter.

See notes 3.e and 10 of the consolidated annual accounts for the year 2024.

Key audit matters How our audit addressed the key audit matters

We have gained an understanding of the methodology and process for recording and assessing impairment of intangible assets and goodwill, including internal control.

Our procedures on the impairment test of goodwill and other intangible assets, in which valuation experts have participated, have focused on aspects such as:

• Assessment of the definition of cashgenerating units.
• Verification of the mathematical accuracy of discounted cash flow projections, including the reconciliation of the flows used with those approved by the respective governing bodies.
• We have verified the adequacy of the methodology and assumptions applied in determining the recoverable value, such as: the business plan, solvency capital requirements, discount rates and long-term growth rates used.
• Obtaining evidence of the specific sensitivity analyses for each of the main assumptions considered, taking into account different scenarios that consider uncertainty and the current macroeconomic context.
• Verification of the information broken down in the attached consolidated financial statements.

In our previous procedures, we have obtained sufficient appropriate audit evidence to support management's estimates on this matter.

Key audit matters How our audit addressed the key audit matters

Valuation of financial investments not listed in active markets recorded at fair value

Due to the nature of the activity carried out by the Group, the main assets recorded in the consolidated balance sheet correspond to financial investments.

Most of the Group's financial instruments are valued using active and observable market prices. However, there are certain assets in the Group's financial investment portfolio (752 million euros) whose fair value is not linked to quoted prices in active markets, but rather generally accepted valuation techniques are used, whose significant variables may or may not be not be based on observable data.

These instruments are valued on the basis of models and assumptions that are not observable by third parties, so these investments have a greater component of judgment and estimation in the selection of the valuation method to be applied, as well as in the assumptions and hypotheses used in the determination of its fair value, therefore, it has been considered a key audit matter.

See notes 3.b, 4.c and 7 of the report to the consolidated annual accounts for fiscal year 2024.

We have obtained an understanding of the

procedures and criteria used by the Group in determining the fair value of financial instruments in order to consider whether they are appropriate, which has included an evaluation of the internal control related to these financial instruments.

Our procedures have focused on aspects such as:

• Verification of the data integrity and accounting records of said financial instruments, as well as their variations during the period.
• Request to the depository entities, in the development of their surveillance, supervision, custody and administration functions for the Group, for confirmation regarding the existence of all the financial investments included in their portfolio as of December 31, 2024.
• Verification of the valuation of a sample of these financial instruments, with the collaboration of the auditor's internal valuation experts and comparison of the valuations obtained from the counterparty and, where appropriate, from management's experts.
• Reconciliation of underlying information data used in valuation models for assets that are not listed on an active market, as well as verification of possible impairments of the investment portfolio.
• Verification of the adequacy of the information disclosed in the attached consolidated annual accounts, in accordance with IFRS 7 Financial Instruments.

In our previous procedures, we have obtained sufficient appropriate audit evidence to support management's estimates on this matter.

Other information: Consolidated management report

Other information comprises only the consolidated management report for the 2024 financial year, the formulation of which is the responsibility of the Parent company's directors and does not form an integral part of the consolidated annual accounts.

Our audit opinion on the consolidated annual accounts does not cover the consolidated management report. Our responsibility regarding the consolidated management report, in accordance with legislation governing the audit practice, is to:

• a) Verify only that the consolidated statement of non-financial information, certain information included in the Annual Corporate Governance Report and the Annual Report on Directors' Remuneration, as referred to in the Auditing Act, have been provided in the manner required by applicable legislation and, if not, we are obliged to disclose that fact.
• b) Evaluate and report on the consistency between the rest of the information included in the consolidated management report and the consolidated annual accounts as a result of our knowledge of the Group obtained during the audit of the aforementioned financial statements, as well as to evaluate and report on whether the content and presentation of this part of the consolidated management report is in accordance with applicable regulations. If, based on the work we have performed, we conclude that material misstatements exist, we are required to report that fact.

On the basis of the work performed, as described above, we have verified that the information mentioned in section a) above has been provided in the manner required by applicable legislation and that the rest of the information contained in the consolidated management report is consistent with that contained in the consolidated annual accounts for the 2024 financial year, and its content and presentation are in accordance with applicable regulations.

Responsibility of the directors and the audit committee for the consolidated annual accounts

The Parent company's directors are responsible for the preparation of the accompanying consolidated annual accounts, such that they fairly present the consolidated equity, financial position and financial performance of the Group, in accordance with IFRS-EU and other provisions of the financial reporting framework applicable to the Group in Spain, and for such internal control as the aforementioned is necessary to enable the preparation of consolidated annual accounts that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated annual accounts, the Parent company's directors are responsible for assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the aforementioned directors either to liquidate the Group or to cease operations, or no realistic alternative but to do so.

The Parent company's audit committee is responsible for overseeing the process of preparation and presentation of the consolidated annual accounts.

Auditor's responsibilities for the audit of the consolidated annual accounts

Our objectives are to obtain reasonable assurance about whether the consolidated annual accounts as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with legislation governing the audit practice in Spain will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated annual accounts.

As part of an audit in accordance with legislation governing the audit practice in Spain, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the consolidated annual accounts, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Parent company's directors.
• Conclude on the appropriateness of the Parent company's directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the consolidated annual accounts or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Group to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the consolidated annual accounts, including the disclosures, and whether the consolidated annual accounts represent the underlying transactions and events in a manner that achieves fair presentation.

• Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities or business units within the Group as a basis for forming an opinion on the consolidated annual accounts. We are responsible for the direction, supervision and review of the audit work performed for purposes of the group audit. We remain solely responsible for our audit opinion.

We communicate with the Parent company's audit committee regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide the Parent company's audit committee with a statement that we have complied with ethical requirements relating to independence and we communicate with the aforementioned those matters that may reasonably be considered to threaten our independence and, where applicable, the safeguards adopted to eliminate or reduce such threat.

From the matters communicated with the Parent company's audit committee, we determine those matters that were of most significance in the audit of the consolidated annual accounts of the current period and are therefore the key audit matters.

We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter.

Report on other legal and regulatory requirements

European single electronic format

We have examined the digital files of the European single electronic format (ESEF) of Grupo Catalana Occidente, S.A. and its subsidiaries for the 2024 financial year that comprise an XHTML file which includes the consolidated annual accounts for the financial year and XBRL files with tagging performed by the entity, which will form part of the annual financial report.

The directors of Grupo Catalana Occidente, S.A. are responsible for presenting the annual financial report for the 2024 financial year in accordance with the formatting and markup requirements established in the Delegated Regulation (EU) 2019/815 of 17 December 2018 of the European Commission (hereinafter the ESEF Regulation). In this regard, the Annual Corporate Governance Report and the Annual Report on Directors' Remuneration have been incorporated by reference in the consolidated management report.

Our responsibility is to examine the digital files prepared by the Parent company's directors, in accordance with legislation governing the audit practice in Spain. This legislation requires that we plan and execute our audit procedures in order to verify whether the content of the consolidated annual accounts included in the aforementioned digital files completely agrees with that of the consolidated annual accounts that we have audited, and whether the format and markup of these accounts and of the aforementioned files has been effected, in all material respects, in accordance with the requirements established in the ESEF Regulation.

In our opinion, the digital files examined completely agree with the audited consolidated annual accounts, and these are presented and have been marked up, in all material respects, in accordance with the requirements established in the ESEF Regulation.

Report to the audit committee of the Parent company

The opinion expressed in this report is consistent with the content of our additional report to the audit committee of the Parent company dated 27 February 2025.

Appointment period

The General Ordinary Shareholders' Meeting held on 25 April 2024 appointed us as auditors of the Group for a period of one year, for the year ended 31 December 2024.

Previously, we were appointed by resolution of the General Ordinary Shareholders' Meeting for a period of three years and we have audited the accounts continuously since the year ended 31 December 2018.

Services provided

Services provided to the Group for services other than the audit of the accounts are disclosed in note 21.b to the consolidated annual accounts.

PricewaterhouseCoopers Auditores, S.L. (S0242)

PRICEWATERHOUSECOOPERS AUDITORES, S.L.

Original in Spanish signed by Enrique Anaya Rico (23060)

27 February 2025

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