MAPFRE, S.A.

Annual Accounts

31 December 2019

Directors' Report

2019

(With Independent Auditor's Report Thereon)

KPMG Auditores, S.L. Paseo de la Castellana, 259 C 28046 Madrid

Independent Auditor's Report on the Annual Accounts

(Translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails.)

To the Shareholders of MAPFRE, S.A.

Report on the Annual Accounts

Opinion

We have audited the annual accounts of MAPFRE, S.A. (the "Company"), which comprise the balance sheet at 31 December 2019, and the income statement of changes in net equity, cash flow statement and notes for the year then ended.

In our opinion, the accompanying annual accounts give a true and fair view, in all material respects, of the equity and financial position of the Company at 31 December 2019, and of its financial performance and its cash flows for the year then ended in accordance with the applicable financial reporting framework, (specified in note 2 to the accompanying annual accounts) and, in particular, with the accounting principles and criteria set forth therein.

Basis for Opinion

We conducted our audit in accordance with prevailing legislation regulating the audit of accounts in Spain. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Annual Accounts section of our report.

We are independent of the Company in accordance with the ethical requirements, including those regarding independence, that are relevant to our audit of the annual accounts in Spain pursuant to the legislation regulating the audit of accounts. We have not provided any non-audit services, nor have any situations or circumstances arisen which, under the aforementioned regulations, have affected the required independence such that this has been compromised.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

@ 2020 KPMG Auditores S.L., a limited liability Spanish
company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss nomational Gooperative | KPMG Confidential

iled at the Madrid Mercentile Registr in volumen
1.961, Sheet. 90,
Section 8, page number M -188.007, entry number 9
Section 8, page number M -188.007, entry number 9 Tax identification number (N.I.F). B-78510153

Key Audit Matters

Key audit matters are those matters that, in our professional judgement, were of most significance in the audit of the annual accounts of the current period. These matters were addressed in the context of our audit of the annual accounts as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Valuation of non-current investments in group companies and associates (Euros 9,592,379 thousand) See notes 4.c) and 8 of the notes to the annual accounts
Key audit matter	How the issue was addressed in our audit
The Entity, holding company of Mapfre Group, has recognised non-current investments in group companies and associates. Recoverable value of these non-current investments in group companies and associates is determined by the use of valuation technics that require of management judgement and estimations and assumptions that consider macroeconomics factors, internal circumstances of the Group companies and their competitors, discount rates, growth rates or estimations of the future evolution of their businesses. Due to the level of uncertainty and judgement associated to the mentioned estimations, as well as the significance of the carried amount of the investments, we consider this to be a key audit matter.	Our audit procedures included, among others, the following: Evaluation of the criteria used by the Company in the identification of impairment indicators of the investments in group companies and associates. Understanding the process of estimation of the recoverable value of the group investments and associates, and evaluation of design and implementation of the relevant controls related to the process that the Company has in place. Evaluation of the reasonability of the 1 methodology and assumptions used in the estimation of the recoverable value of the investments in group companies and associates, with the collaboration of our corporate finance specialists. We have checked the consistency between the expected cash flow used in the calculation of the value in use with the business plans approved by the Directors of the Group's companies, and their reasonability based in historical experience and market expectations in the markets in which they operate. Additionally, we have evaluated the discount and growth rates used in the calculation of the recoverable values, as well as performed sensitivity analysis over the key inputs used in the model, with the goal of assessing their impact in the valuation. Evaluation that the information within the annual accounts is in compliance with the legal financial reporting requirements applicable to the Company.

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Esta es una copia auténtica imprimible de un documento por la CNMV, según el artículo 27.3 c) de la Ley 39/2015, de 2 de octubre. Su
autenticidad puede ser contrastada a través de la siguiente dirección: https://sede.cnmv/LibreAcceso/CSV.aspx

Other Information: Directors' Report

Other information solely comprises the 2019 directors' report, the preparation of which is the responsibility of the parent's directors and which does not form an integral part of the annual accounts.

Our audit opinion on the annual accounts does not encompass the directors' report. Our responsibility regarding the information contained in the directors' report is defined in the legislation regulating the audit of accounts, which establishes two different levels for this information:

a) A specific level applicable to non-financial information statement, as well as certain information included in the Annual Corporate Governance Report (ACGR), as defined in article 35.2. b) of the Audit Law 22/2015, which solely requires that we verify whether said information has been included in the director's report or, where applicable, that the director's report includes the corresponding reference to the separate non-financial report as stipulated by prevailing regulations and if not, report on this matter.
b) A general level applicable to the rest of the information included in the directors' report, which consists of assessing and reporting on the consistency of this information with the annual accounts, based on knowledge of the Company obtained during the audit of the aforementioned accounts and without including any information other than that obtained as evidence during the audit. Also, assessing and reporting on whether the content and presentation of this part of the directors' report are in accordance with applicable legislation. If, based on the work we have performed, we conclude that there are material misstatements, we are required to report them.

Based on the work carried out, as described in the preceding paragraphs, we have verified that directors' report includes a reference that the non-financial informationed in a) above has been provided in the consolidated directors' report of Mapfre Group, that the information from the ACGR previously mentioned is included in the directors' report, and that the rest of the information contained in the directors' report is consistent with that disclosed in the annual accounts for 2019 and the content and presentation of the report are in accordance with applicable legislation.

Directors' and Audit and Compliance Committee's responsibility for the Annual Accounts

The directors are responsible for the preparation of the accompanying annual accounts in such a way that they give a true and fair view of the equity, financial position and financial performance of the Company, in accordance with the financial reporting framework applicable to the entity in Spain, and for such internal control as they determine is necessary to enable the preparation of annual accounts that are free from material misstatement, whether due to fraud or error.

In preparing the annual accounts, the directors are responsible for assessing the Company'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 Directors either intend to liquidate the Company on to cease operations, or have no realistic alternative but to do so.

The audit and compliance committee is responsible for overseeing the preparation and presentation of the annual accounts

Auditor's Responsibilities for the Audit of the Annual Accounts

Our objectives are to obtain reasonable assurance about whether the annual accounts as a whole are 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 prevailing legislation regulating the audit of accounts 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 agaregate, they could reasonably be expected to influence economic decisions of users taken on the basis of these annual accounts.

As part of an audit in accordance with prevailing legislation regulating the audit of accounts in Spain, we exercise professional judgement and maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the 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, and not for the purpose of expressing an opinion on the effectiveness of the entity's internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
Conclude on the appropriateness of the 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 Company'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 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 Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the annual accounts, including the disclosures, and whether the annual accounts represent the underlying transactions and events in a manner that achieves a true and fair view.

We communicate with the audit and compliance committee of MAPFRE, S.A. 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.

Código seguro de verificación (CSV): xIvfjCSHJswnKZUFv5fe	COPIA ELECTRONICA
Esta es una copia auténtica imprimble de un doumento electrónico archivado por la criculo 27.3 c) de la Ley 39/2015, de 2 de octubre. Su autenticidad puede ser contrastada a través de la siquiente dirección: https://sede.cnmv/LibreAccess/CSV.aspx

We also provide the Company's audit and compliance committee of the Entity with a statement that we have complied with the applicable ethical requirements, including those regarding independence, and to communicate with them all matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated to the Company's audit and compliance committee, we determine those that were of most significance in the audit of the annual accounts of the current period and which 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

Additional Report to the Audit and Compliance Committee

The opinion expressed in this report is consistent with our additional report to the Company's Audit and Compliance Committee dated 12 February 2020.

Contract Period

We were appointed as auditors by the shareholders of MAPFRE, S.A. at the ordinary general meeting on 9 March 2018 for a period of 3 years, from the year ended 31 December of 2018.

Previously, we had been appointed as auditors by the shareholders for a period of 3 years, and have been auditing uninterrupted the Company's Annual Accounts since the year ended 31 December 2015.

KPMG Auditores, S.L. (S0702)

(Signed on original in Spanish)

Jorge Segovia Delgado

R.O.A.C: 21903

12 February 2020

ANNUAL ACCOUNTS

MANAGEMENT REPORT

FISCAL YEAR 2019

MAPFRE S.A.

e English version is a translation of the original in Spanish for information purposes only. In case of discrep ncy, the Spanish version shall prevail.

mapfre s.a.

ANNUAL ACCOUNTS

FISCAL YEAR 2019

Balance sheet

Income statement

Statement of changes in equity

Cash flow statement

Annual report

MAPFRE S.A.

The English version is a translation of the original in Spanish for information purposes only. In espanish version shall prevail.

Código seguro de verificación (CSV): xlvfjCSHJswnKZUFv5fe COPIA ELECTRÓNICA Esta es una copia auténtica imprimible de un documento est invato por la CNM, según el arículo 27.3 ; de la Ley 3.2015, de 2 de octubre. Su autenticidad puede ser contrastada a través de la siguiente dirección: https://sede.cnmv.libreAcceso/CSV.aspx

BALANCE SHEET AS AT DECEMBER 31, 2019 AND 2018

ASSETS	Notes from the	2019	2018
	Annual Report
A) NON-CURRENT ASSETS		9,999,853	9,983,556
I. Intangible fixed assets	б	428	1,122
5. Computer applications		428	1,122
II. Property, plant and equipment	5	15,609	16,226
1. Land and buildings		11,948	12,137
2. Facilities and other property, plant and equipment		3,482	4,089
3. Fixed assets in progress and advance payments		179
IV. Non-current investments in Group companies and associates	8	9,929,879	9,914,749
1. Equity instruments		9,592,379	9,536,749
2. Loans to companies		337,500	378,000
V. Non-current financial investments	8	27,028	24,390
1. Equity instruments		21,905	19,189
2. Loans to third parties		ਰੀ ਹੈ।	ਟੈਕੇ
6. Other investments		5,032	5,147
VI. Deferred tax assets	12	26,909	27,069
B) CURRENT ASSETS		309,662	282,134
III. Trade and other receivables		95,302	53,209
1. Trade receivables for sales and services rendered	8	5	33
2. Trade receivables, Group companies and associates	8		17
3. Sundry receivables	8	240	265
4. Personnel	8	460	367
5. Current tax assets	12	93,814	52,527
6. Other receivables from government agencies		783
IV. Current investments in Group companies and associates	8.18	196,080	200,055
2. Loans to companies		150,123	150,903
5. Other financial assets		45,957	49,152
V. Current financial investments	8	57	57
2. Loans to third parties		57	57
VI. Current accruals		3,056	4,166
VII. Cash and other equivalent liquid assets		15,167	24,647
1. Cash		15,167	24,647
TOTAL ASSETS (A+B)		10,309,515	10,265,690

Thousands of euros

The English version is a translation of the original in Spanish for information purposes only. In ass of discrepancy, the Sparish version shall prevail.

BALANCE SHEET AS AT DECEMBER 31, 2019 AND 2018

	EQUITY AND LIABILITIES	Notes from the Annual Report	2019	2018
A)	EQUITY		7,456,537	7,384,036
A-1)	SHAREHOLDERS' EQUITY		7,456,537	7,384,036
1.	Capital		307,955	307,955
1.	Authorized share capital	9	307,955	307,955
II.	Share premium	9	3,338,720	3,338,720
lit.	Reserves		3,231,920	3,140,511
1.	Legal and statutory	9	61,591	61,591
2.	Other reserves		3,170,329	3,078,920
IV.	(Treasury stock)	9	(63,836)	(48,250)
V.	Results for previous years		383,458	336,479
1.	Retained earnings		383,458	336,479
VII.	Result for the period	3	443,093	493,455
	VIII. (Interim dividend)	3	(184,773)	(184,834)
ાંત્રે.	Other equity instruments
B)	NON-CURRENT LIABILITIES		2,711,017	2,590,517
1.	Non-current provisions		10,990	11,792
1.	Long-term employee benefit obligations	14	10,990	11,694
4.	Other provisions	14		ರಿ8
II.	Non-current debt		2,699,919	2,578,617
1.	Debentures and other negotiable securities	8.10	2,089,554	2,088,252
2.	Due to credit institutions	8	610,000	490,000
ನೆ	Other financial liabilities	8	365	રેકેટ
III.	Non-current debt with Group companies and associates	8.18
IV.	Deferred tax liabilities		108	108
C)	CURRENT LIABILITIES		141,961	291,137
II.	Current provisions	14
III.	Current debt		36,352	36,412
ਜ ਂ	Debentures and other negotiable securities	8.10	36,337	36,337
2.	Due to credit institutions	8	5	43
5.	Other financial liabilities	8	10	32
	IV. Current debt with Group companies and associates	8.18	64,599	216,291
V.	Trade and other payables		41,010	38,434
3.	Sundry creditors	8	16,483	12,976
	4. Personnel (remuneration pending payment)	8	11,311	11,225
5.	Current tax liabilities	12		26
રં.	Other debts with government agencies		13,216	14,207
	TOTAL EQUITY AND LIABILITIES (A+B+C)		10,309,515	10,265,690

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

Thousands of euros

INCOME STATEMENT FOR THE YEARS ENDED DECEMBER 31, 2019 AND 2018

INCOME STATEMENT	Notes from the	2019	2018
ONGOING OPERATIONS	Annual Report
Revenue		616,263	750,118
Dividends and interest from Group companies and associates		616,263	750,118
Dividends	8.18	601,546	741,258
Interest	8.18	14,717	8,860
Other operating revenue		62,752	86,973
Non-core and other operating revenue	18	62,752	86,973
Personnel expenses		(67,506)	(67,928)
Wages, salaries and similar		(46,066)	(50,335)
Social security contributions	13	(21,474)	(22,553)
Provisions	14	34	4,960
Other operating expenses		(93,661)	(90,730)
External services		(92,422)	(90,698)
Taxes		(1,239)	(32)
Amortization and depreciation of fixed assets	5.6	(2,055)	(2,697)
Excess provisions
Impairment and gains/(losses) on fixed asset disposal		(94)	(44)
Impairment of Group companies and associates	8	(45,437)	(151,622)
Other earnings		21	(4)
EARNINGS FROM OPERATIONS		470,283	524,066
Financial income	8	371	304
Acquisitions in equity instruments
From third parties
From negotiable securities and other financial instruments		371	394
From third parties		371	394
Financial expenses		(70,083)	(67,007)
For debt with Group companies and associates	8.18	(1,431)	(11,663)
For debt with third parties ●	8	(68,457)	(55,146)
For update of provisions	8	(195)	(198)
Fair value variation in financial instruments
Trading portfolio and other	8
Foreign exchange differences	8	(વ)	(12)
Impairment and gains/losses on financial instrument disposal	8	4,074
Impairment and loss		(5,600)
Earnings from disposal and other		9,674
FINANCIAL RESULT		(65,642)	(66,628)
EARNINGS BEFORE TAX		404,641	457,438
Tax on profits	12	38,452	36,017
RESULT FOR THE PERIOD FROM ONGOING OPERATIONS		443,093	493,455
DISCONTINUED OPERATIONS
Result for the period after tax from discontinued operations
RESULT FOR THE PERIOD		443,093	493,455

Thousands of euros

The English version is a translation of the original in Spanish for information purposes only. In Spanish version shall prevail.

STATEMENT OF CHANGES IN EQUITY AT DECEMBER 31, 2019 AND 2018

A) STATEMENTS OF RECOGNIZED INCOME AND EXPENSE

	INCOME STATEMENT	Notes from the Annual Report	2019	2018
A)	Result of the income statement	3	443,093	493,455
	Revenue and expenses posted directly to equity
	I. For valuation of financial instruments
	1. Financial assets for sale
	2. Other revenues/expenses
	IV. For actuarial gains and losses and other adjustments
	VII. Tax effect
	B) Total revenue and expenses posted directly in equity (I+IV+VII)
	Transfers to the income statement
	VIII. For valuation of financial instruments
	1. Financial assets for sale
	XIII. Tax effect
	C) Total transfers to the income statement (VIII+XIII)
	TOTAL RECOGNIZED REVENUE AND EXPENSES (A+B+C)		443,093	493,455

Thousands of euros

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

MAPFRE S.A.

STATEMENT OF CHANGES IN EQUITY AT DECEMBER 31, 2019 AND 2018

STATEMENT OF TOTAL CHANGES IN EQUITY B)

TEM	Capital		Share premium	Reserves	(Treasury stock)	Result from	shareholder Other	Result for the	(Interim dividend)	Other equity	Valuation change	Grants, donations and bequests	TOTAL
	Authorized	Uncalled				previous years	contributions	period		Instruments	adjustments	received
ADJUSTED BALANCE, BEGINNING OF 2018	307,955	mw	3,338,720	3,136,783	(52,356)	289,403	i	495,530	(184,772)	2,867	t	t	7,334,129
Total recognized revenue and expenses	t	i	t	i	ામ	!	t	493,455	t	t	------------------------------------------------------------------------------------------------------------------------------------------------------------------------------	-	493,455
Share capital increases	t	wa	me	i	ﻠ	i	------------------------------------------------------------------------------------------------------------------------------------------------------------------------------	ャー	**	t	l	--	i
. (-) Distribution of dividends	-	--	l	t	l		l	(261,825)	(184,834)	i	--	t	(446,659)
bis. Distribution of earnings	ા	--	un	1,857	ﺇ	47,076	l	(233,705)	184,772	i	-	i	f
Operations with treasury stock (Note 9)	ﯿﯿ	ur	ィ	1,931	4,106	i	--	---	t	--	---	i	6,037
6. Increases in equity resulting from a business combination	t	***	l	i	-	i	an	i	t	a ar	--	--	l
ll. Other variations in equity	l		-	(60)	i	i	-	:	--	(2,867)	--	--	(2,927)
CLOSING BALANCE FOR YEAR 2018	307,955	--	3,338,720	3,140,511	(48,250)	336,479	l	493,455	(184,834)	rr	l	t	7,384,036
l. Correction of errors 2018	t	-	t	t	t	t	t	:	t		l	ﺴﺘﺎ
DIUSTED BALANCE, BEGINNING OF 2019	307,955	--	3,338,720	3,140,511	(48,250)	336,479	l	493,455	(184,834)	i	t	t	7,384,036
. Total recognized revenue and expenses	t	--	t	--	i	t	i	443,093	t	i	--	ﺴﻪ	443,093
1. Share capital Increases	t	i	i	t	i	!	t	i	t	t	***	-	---
4. (--) Distribution of dividends	i	---	i	--	i		દ્ર	(261,642)	(184,773)	t	i	l	(446,415)
4. bis. Distribution of earnings	t	uu	-		i	46,979	--	(231,813)	184,834	--	-	uu	i
Operations with treasury stock (Note 9) ഗ	서비	t	t	ರಿಯ	(15,586)	i	-	--	f	i	l	;	(14,681)
6. Increases in equity resulting from a business combination	l	l	l	--	-	t	l	l	l		l	t	l
III. Other variations in equity (Note 8)	t	--	l	90,504	--	terest the formation of the formation of the first of the first the formation of the first the formation of the first the first the formation of the first the formation of th	t	l	-	--	t	-	90,504
CLOSING BALANCE FOR YEAR 2018	307,955	t	3,338,720	3,231,920	(63,836)	383,458	--	443,093	(184,773)	:	l	--	7,456,537
Thousands of euros

The English version is a translation of the original in Spanish for Information purposes only. In case of discrepancy, the Spanish version shall prevall.

CASH FLOW STATEMENT AT DECEMBER 31, 2019 AND 2018

A) CASH FLOWS FROM OPERATING ACTIVITIES	Notes from the	2019	2018
	Annual Report
1. Result for the period before tax		404,641	457,438
2. Adjustments to results		(463,368)	(487,900)
a) Amortization and depreciation of fixed assets	5.6	2,055	2,697
b) Corrections in value due to impairment (+/-)	8	45,437	151,622
e) Results of fixed asset cancellations and disposals (+/-)		ਰੇਖ	44
f) Results of financial instruments cancellations and disposals (+/-)		(4,074)
g) Financial income (-)	8	(371)	(394)
b) Financial expenses (+)	8	70,083	67,007
i) Exchange rate differences (+/-)	8	4	। ਤੇ
j) Fair value variation in financial instruments (+/-)	8
k) Other revenues and expenses		(576,596)	(708,891)
3. Changes in working capital		(35,399)	(52,021)
b) Debtors and other receivables (+/-)		(54,018)	(81,626)
c) Other current assets (+/-)		16,043	49,323
d) Creditors and other payables (+/-)		2,576	(19,718)
e) Other current liabilities (+/-)
f) Other non-current assets and liabilities (+/-)
4. Other cash flows from operating activities		535,294	683,115
a) Interest paid (-)		(96,394)	(96,006)
b) Dividend receipts (+)		601,543	741,258
c) Interest collected (+)		18,220	6,157
d) Payment (receipt) of income tax (+/-)		11,925	31,706
e) Other payments (collection) (-/+)
5. Cash flows from operating activities (+/-1+/-2+/-3+/-4)		441,168	600,632
B) CASH FLOWS FROM INVESTING ACTIVITIES
6. Payments for investments (-)		(218,792)	(627,225)
a) Group companies and associates	8	(210,459)	(617,846)
g) Other assets	8	(8,333)	(9,379)
7. Collections for divestments (+)		247,682	263,504
a) Group companies and associates	8	247,665	263,420
e) Other financial assets	8	17	84
8. Cash flows from investing activities (7+6)		28,890	(363,721)
C) CASH FLOW FROM FINANCING ACTIVITIES
9. Payments and collections for equity Instruments		(14,676)	6,039
c) Acquisition of treasury equity instruments (-)	9	(19,302)
e) Disposal of treasury equity instruments (+)	9	4,626	6,039
10. Payments and collections for financial liability instruments		(18,400)	186,700
a) Issuing			500,000
1. Debentures and other negotiable securities (+)	10
2. Due to credit institutions (+)	8	367,000	480,000
3. Debt with Group companies and associates (+)
b) Return and redemption of
1. Debentures and other negotiable securities (-)	10
2. Due to credit institutions (-)	8	(247,000)	(590,000)
3. Debt with Group companies and associates (-)		(138,400)	(203,300)
11. Payments for dividends and remuneration of other equity instruments		(446,462)	(446,659)
a) Dividends (-)		(446,462)	(446,659)
12. Cash flows from financing activities (+/-9/10-11)		(479,538)	(253,920)
D) EFFECT OF EXCHANGE RATE VARIATIONS
E) NET INCREASE / DECREASE OF CASH OR EQUIVALENTS (+/-5+/-8+/ -12+/-D)		(9,480)	(17,009)
Cash or cash equivalents at the beginning of the year		24,647	41,656
Cash or cash equivalents at the end of the year		15,167	24,647

The English version is a translation of the orlginal in Spanish for information purposes only. In Spanish version shall prevail.

ANNUAL REPORT

FISCAL YEAR 2019

COMPANY ACTIVITY 1.

MAPFRE S.A. (the "Company") is a corporation (Spanish "sociedad anónima") whose main activity is the investment of its funds in real-estate assets and tradeable financial securities.

The Company's scope of action includes the entire Spanish territory.

Its registered office is at Crta. de Pozuelo, 52, Majadahonda (Madrid, Spain). The Company is the controlling company of the MAPFRE Group, which comprises MAPFRE S.A. and several companies operating in the insurance, property, financial and services sectors.

The Company is a subsidiary of CARTERA MAPFRE, S.L., Single-Member Company, with registered address at Carretera de Pozuelo, 52, Majadahonda (Madrid, Spain). The annual accounts of that company for the year ended December 31, 2019 will be prepared by its board of directors on March 30, 2020 and will be placed on file at the Madrid Companies' Registry.

The ultimate controlling company is Fundación MAPFRE, a non-profit company whose registered address is Paseo de Recoletos No. 23, Madrid and whose consolidated annual accounts will be filed with the Madrid Companies' Registry and a copy sent to the Foundations Register.

2. BASIS OF PRESENTATION OF THE ANNUAL ACCOUNTS

a) TRUE AND FAIR VIEW

The application of legal provisions regarding accounting matters have resulted in a true and fair view of the Company's equity, financial position and results for the year, and the accuracy of the cash flows reported on the cash flow statement. The directors consider that it is not necessary to include supplementary information in this regard.

The Board of Directors expects the individual and consolidated annual accounts for 2019 prepared on February 11, 2020 to be approved by the Annual General Meeting with no changes.

b) ACCOUNTING PRINCIPLES

The annual accounts have been prepared in accordance with the Spanish General Chart of Accounts approved under Royal Decree 1514/2007 of November 16 and subsequently

The English version is a translation of the original in Spanish for information purposes only. In Spanish version shall prevali

amended through Royal Decree 1159/2010 of September 17 and Royal Decree 602/2016 of December 2, as well as with all other applicable mercantile legislation.

c) CRITICAL ASPECTS OF MEASURING AND ESTIMATING UNCERTAINTY

When preparing the annual accounts, judgments and estimates were used that are based on assumptions about the future and uncertainties. These primarily refer to asset impairment, deferred tax assets and provisions.

The estimates and assumptions used are reviewed regularly, and are based on past experience and on other factors that have been deemed most reasonable in each instance. If these reviews lead to changes in estimates in a given period, their effect would apply to that period and, as the case may be, to subsequent periods.

d) COMPARISON OF INFORMATION

There is nothing preventing the annual accounts of the current year from being compared with those of the previous year.

e) CORRECTIONS OF ERRORS

No significant errors were found in the Company's annual accounts from previous years.

3. DISTRIBUTION OF PROFITS

The Company's Board of Directors has proposed the following distribution of profits for approval at the Annual General Meeting:

BASIS OF DISTRIBUTION	AMOUNT
Profit for the fiscal period	443,092,794.75
Retained earnings	383,458,419.15
TOTAL	826,551,213.90
DISTRIBUTION	IMPORTE
To dividends	446,535,224.59
To retained earnings	380,015,989.31
TOTAL	826,551,213.90

Figures in euros

The planned distribution of dividends in the distribution of profits complies with the requirements and limitations established under legal regulations and the corporate bylaws. The requirements and limitations related to restricted reserves are set out in Note 9 "Shareholders' equity."

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version s

During the fiscal year, the Company distributed an interim dividend of 184,773,244.10 euros (184,834,843.67 euros in 2018), which is recorded in equity under the heading "Interim dividend."

The liquidity statement prepared by the Board of Directors for the distribution of the interim dividend is shown below.

ITEM	DATE OF AGREEMENT September 26, 2019
Cash available on date of agreement	6,192
Increases in cash forecast within one year	804,605
(+) From expected current collection operations	704,605
(+) From expected financial operations	100,000
Decreases in cash forecast within one year	(401,642)
(-) From expected current payment transactions	(94,941)
(-) From expected financial transactions	(306,701)
Cash available within one year	409,155

Thousands of euros

The distribution of profits for fiscal year 2018, carried out during 2019, is presented in the statement of total changes in equity.

4. RECOGNITION AND MEASUREMENT STANDARDS

The recognition and measurement standards applied are indicated below:

Fixed assets a)

Intangible fixed assets

Intangible fixed assets recognized comply with the identifiable criterion and are carried at cost less accumulated amortization and any impairment losses.

They are measured at their acquisition price or production cost and usually are systematically amortized according to their useful life.

Property, plant and equipment

The assets included under property, plant and equipment are measured at cost of acquisition or production, including indirect taxes that are not directly recoverable from the Spanish tax authorities, less accumulated depreciation and impairment losses.

The English version is a translation of the original in Spanish for information purposes only. In assess and prevail.

Depreciation is calculated on a straight-line basis, on the cost of the asset less the residual value and less the value of land, in accordance with the estimated useful life.

The costs of renovating, expanding or improving property, plant and equipment are recognized as an increase in the value of the asset when they entail an increase in capacity, productivity or extension of the useful life of each asset.

Impairment of fixed assets

At least at the fiscal year-end, and wherever there are indications of impairment, the Company considers whether the fixed assets may have suffered a loss in value. If such evidence exists, the recoverable amount of the asset is estimated.

Recoverable amount is the greater of an asset's fair value less costs to sell and its value in use.

If the book value exceeds the recoverable amount, the excess is recognized as a loss, reducing the book value of the asset to its recoverable amount.

Valuation adjustments to assets due to impairment and the reversal thereof are recognized as an expense or revenue, respectively, on th income statement under "Impairment and gains/(losses) from disposal of fixed assets."

If there is an increase in the recoverable amount of an asset other than goodwill, any previously recognized impairment loss is reversed, increasing the book value of the asset to its recoverable amount. This increase never exceeds the book value, net of amortization or depreciation, that would be recorded had an impairment loss not been recognized in previous years. The reversal is recognized on the income statement, unless the asset was previously subject to revaluation against "Valuation change adjustments", in which case the reversal is treated as a revaluation increase. Amortization and depreciation expenses are adjusted in the following periods after the valuation adjustment or its reversal.

b) Operating leases

The Company classifies the lease contracts it holds as operating leases given that the lessor does not substantially transfer to the lessee all the risks and benefits of ownership. The revenue and expenses arising from operating leasing are recorded on the income statement over the life of the contract on an accruals basis.

c) Financial instruments

FINANCIAL ASSETS

All assets comprising cash, equity instruments of other companies, or that entail a contractual right to receive cash or another financial asset, or any exchange of financial instruments under favorable conditions, are classified as financial assets.

The fair value of financial assets is determined through the use of market prices, provided that the available quotations of the instruments can be considered representative. In order for them to be considered as such, they must be published regularly in standard information systems provided by recognized financial brokers.

If market valuation is not possible, a valuation will be performed with internal models using, as far as possible, public market data that satisfactorily replicates the valuation of the instruments quoted. This valuation methodology will be based on the discounting of (determined or estimated) future flows from the assets using the risk-free discount curve. Depending on the characteristics of the issue concerned and the issuer, a specific credit risk will be assigned, which will apply to a different degree to each of the flows to be received.

For participations in mutual funds classified as assets available for sale, the fair value will be the realizable value of the fund as at the date of valuation.

Operations in the currency market are recorded on the settlement date, while financial assets traded on Spanish over-the-counter markets are recognized on the trading date, for equity instruments, and on the settlement date, for debt securities.

Financial assets are classified as:

Loans and receivables

This category includes trade and non-trade receivables.

Following initial recognition at their fair value, they are measured at amortized cost. Any interest accrued is posted on the income statement, applying the effective interest method.

Loans and receivables also include deposits in credit institutions, which are measured at amortized cost. Revenue generated on these deposits is recognized at the effective fixed interest rate.

Trade receivables and other items such as advances, loans to personnel or dividends receivable maturing in less than a year and without a contractual interest rate are

The English version is a translation of the original in Spanish for information purposes only. In espanish version shall prevail.

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measured at their face value when the effect of not discounting cash flows is immaterial to the initial recognition or to subsequent valuation, unless there is impairment.

Impairment exists when there is a decrease or delay in future estimated cash flows that could result from debtor insolvency.

Valuation adjustments due to impairment and their reversal, if applicable, are performed at the close of the fiscal year, recognizing an expense or revenue, respectively, on the income statement. Nevertheless, impairment losses may only be reversed up to the limit of the amortized cost that would have been recorded if an impairment loss had not been recognized in previous years.

Investments in the equity of Group companies, jointly controlled companies and associates

Investments in the equity of Group companies, jointly controlled companies and associates is initially recognized and measured at cost minus the accumulated amount of valuation adjustments for impairment, if applicable.

In the case of non-monetary contributions to Group companies, the contributor values the investment at the book value of the assets and liabilities delivered in the Group's most recent consolidated annual accounts. Any difference between the book value of the investment contributed and the value assigned to the interest received is posted in a reserve account.

When a value is assigned due to derecognition or for another reason, the weighted average cost method is applied for homogeneous groups.

In the case of the sale of preferential subscription rights and similar rights or the division of these rights to exercise them, the cost of the rights reduces the book value of the respective assets.

At the close of the fiscal year, when there is objective evidence that the book value of the investment is not recoverable, the necessary valuation adjustments are made.

A valuation adjustment equates to the difference between the book value of the investment and the recoverable amount. The latter is the higher of fair value less costs to sell and the present value of the future cash flows derived from the investment.

Valuation adjustments due to impairment and their reversal, if applicable, are recorded as an expense or revenue for the fiscal year on the income statement.

The English version is a translation of the original in Spanish for information purposes only. In asse of discrepancy, the Spanish version shall prevail.

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Financial assets available for sale

This category includes debt securities and equity instruments of other companies that are not classified in any other financial asset category.

Initial recognition and subsequent measurement are at fair value, plus the preferential subscription rights acquired, without subtracting transaction costs that could arise from disposal.

Changes in fair value are recognized directly in equity until the financial asset is written off or becomes impaired, at which time they are recorded on the income statement.

Impairment losses and currency exchange differences in financial assets carried in foreign currencies are registered in the income statement. The amount of interest calculated applying the effective interest rate method and dividends accrued are also recorded on the income statement.

Investment in equity instruments whose fair value may not be reliably calculated are measured at their cost minus the accumulated valuation adjustments due to impairment.

When a value is assigned to these assets due to derecognition or for another reason, the weighted average cost method is applied for homogeneous groups.

In case of sale of preferential subscription rights and similar rights, the cost of the rights reduces the book value of the respective assets.

At least at the close of the financial year, the pertinent corrections in value are made, providing there is objective evidence that the value of an available-for-sale financial asset is impaired, the amount of which is recognized in the income statement. Reversals of valuation adjustments are credited to the income statement, with the exception of those associated with equity instruments, the reversal for which is recognized directly in equity.

For equity instruments, investments are analyzed individually to determine whether any impairment exists, when the market value has fallen either over a prolonged period (18 months) or by a significant amount (40 percent) compared to cost.

Cash and other equivalent liquid assets

Cash includes cash on hand and demand deposits, while cash equivalents correspond to highly liquid short-term investments that can be easily converted to fixed amounts of cash and have an insignificant risk of change in value.

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

Codigo seguro de verificación (CSV): xIvfiCSHJswnKZUFv5fe	COPIA ELECTRONICA
Esta es una copia auténtica imprimble de un doumento electrónico archivado por la criculo 27.3 c) de la Ley 39/2015, de 2 de octubre. Su autenticidad puede ser contrastada a través de la siguiente dirección: https://sede.cnmv/LibreAcceso/CSV.aspx

Interest and dividends received from financial assets

The interest and dividends from financial assets accrued after acquisition are recognized as revenue on the income statement. The interest is recognized using the effective interest rate method, and dividends when the right to receive them is declared.

To this end, the amount of accrued and non-accrued explicit interest and the dividends agreed upon acquisition are recorded separately in the initial valuation of financial assets, bearing in mind their maturity.

Additionally, when the distributed dividends come from earnings generated prior to the acquisition date, because amounts were distributed that are greater than the profits generated by the investee since the acquisition, they are not recognized as revenue and they reduce the book value of the investment.

Derecognition of financial assets

Financial assets are derecognized when the contractual rights over the cash flows of the financial asset expire or when they are transferred, whereupon the risks and benefits of ownership are substantially transferred.

When a financial asset is canceled, the difference between the net received compensation of the attributable transaction costs and the book value of the financial asset, plus any accumulated amount recognized directly as equity, determines the resulting gains or losses and is part of the result for the financial year.

FINANCIAL LIABILITIES

All instruments issued, incurred or assumed that imply a direct or indirect contractual obligation for the Company are recorded as financial liabilities, in accordance with the economic reality of delivering cash or another financial asset or exchanging financial assets and liabilities with third parties in unfavorable conditions.

Financial liabilities are classified as:

Debits and payables

These correspond to trade and non-trade payables.

After initial recognition at their fair value (transaction price), they are measured at their amortized cost, and any interest is recorded on the income statement, applying the effective interest rate method.

The English version is a translation of the original in Spanish for information purposes only. In ase of discrepancy, the Spanish version shall prevail.

In the case of trade payables maturing within a year and without a contractual interest rate, as well as third-party called capital for holdings whose amount are expected to be paid in the short-term, both the initial valuation and subsequent valuations are performed at the face value when the effect of not discounting cash flows is immaterial.

Derecognition of financial liabilities

Financial liabilities are derecognized when the obligation inherent to them has expired. Additionally, an own financial liabilities acquired are derecognized even when there is an intention to reassign them in the future.

If there is an exchange of debt instruments with significantly different conditions, the original liability is canceled and the new liability is recognized.

The difference between the book value of the financial liability or the derecognized part of the liability and the compensation paid, including attributable transaction costs, and including any transferred asset other than cash or the liability assumed, is recognized on the income statement during the fiscal year in which it occurs.

If there is an exchange of debt instruments without significantly different conditions, the original liability is not derecognized, and any commission paid is recorded as an adjustment to the book value.

Own equity instruments

All items that show a residual investment in Company assets once its liabilities have been deducted are classified in this category.

Treasury stock is measured at its net acquisition cost and recorded in equity. Expenses incurred on acquisition are recognized in equity as a decrease in the value of reserves.

All transactions performed with own equity instruments are recorded in equity as a variation in the value of shareholders' equity.

d) Transactions in foreign currency

Transactions in foreign currencies are converted to euros by applying the exchange rate in force on the transaction date.

At fiscal year-end, the balances that correspond to monetary items expressed in foreign currencies are converted at the exchange rate of the euro on that date, and all exchange differences are allocated in the income statement, except for monetary financial assets that are available for sale and in which exchange rates other than those generated from the amortized cost are recognized directly in equity.

The English version is a translation of the original in information purposes only. In case of discrepancy, the Spanish version shall preval

Non-monetary items that are measured at historical cost are generally recorded by applying the exchange rate of the transaction date. When determining the net equity of an investee, adjusted for any unrealized gains that exist on the valuation date, the closing exchange rate is applied to the net equity and unrealized gains that exist on that date.

Non-monetary items at fair value are recorded by applying the exchange rate on the date when the fair value was determined, recognizing any losses and gains derived from the valuation as net equity or as earnings, depending on the nature of the item.

When presenting the cash flow statement, the flows from transactions in foreign currencies are converted to euros by applying the spot exchange rate on the dates of exchange to the amount in foreign currency.

The effect of the variation in exchange rates on cash and other equivalent liquid assets expressed in foreign currency is presented separately on the cash flow statement as "Effect of exchange rate variations."

e) Corporate tax

Corporate tax is treated as an expense for the fiscal year and is recorded as such on the income statement, including both the tax burden of current tax and the effect of any changes in deferred tax.

However, corporate tax related to tems where modifications in their value are directly recognized in equity are not posted to the income statement but to equity, and the changes in value are included in those items net of the tax effect.

Current tax assets or liabilities are measured at the amounts that are expected to be recovered or paid, as per the tax rules and rates that are in force or approved and pending publication at year-end.

The Company files taxes as part of a consolidated tax group. The expense for corporate tax on the companies in the consolidated tax group is determined taking into account the parameters used in calculated individual tax as well as the following items:

· Temporary and permanent differences arising as a result of eliminating gains and losses on intergroup transactions, derived from the process of determining the consolidated tax hase.
· Tax credits and deductions corresponding to each Group company in the consolidated tax group. To that end, tax credits and deductions are recorded in the company that carried out the related activity or that obtained the gain resulting in entitlement to the tax credit or deduction.

The English version is a translation of the original in Spanish for information purposes only. In asse of discrepancy, the Spanish version shall prevail

Código seguro de verificación (CSV): xIvfjCSHJswnKZUFv5fe	COPIA ELECTRONICA
Esta es una copia auténtica imprimible de un doumento electrónico por la CNMV, según el artículo 27.3 c) de la Ley 39/2015, de 2 de octubre. Su
autenticidad puede ser contrastada a través de la siquiente dirección: https://sede.mmv/l.ibreAccess/CSV.aspx

Temporary differences derived from the elimination of gains and losses between Temporaly "unrerences" denved" non-and "hemel" with generated the gain or loss, and are measured at the applicable tax rate.

Tax losses incurred in certain Group companies that have been offset by profits of other Tax losses incurred in certain Group company of credit and debit between the companies, companies in the Group give 15c to a rooprocal be offset by profits of other Group as appropriate. In the event that tax losses canves canneed as deferred tax assets by the companies, the tax 1035 carrylorwards and are versee by future profits of the tax group.

As the Group's controlling company, the Company recognizes the total amount payable for AS the Group s controlling company) the earling the different Group companies and associates, as appropriate.

Deferred tax is recorded for temporary differences on the reporting date between the tax Defened tax is recorded for temporary and their book values. The tax base of an equity item is the amount attributed to it for tax purposes.

The tax effect of temporary differences is included for all taxable temporary differences i The tax enect of temporary amerenoes is "Deferred tax assets" and "Deferred tax liabilities," ander the exceptions provided in current regulations, if applicable.

The Company recognizes deferred tax assets for all deductible temporary differences, The Company Tecognizes and tax loss carryforwards to the extent that it is likely that the unused tax Teceivables and table profits allowing these assets to be used.

Unless evidenced otherwise, it is not considered likely that the Company will of futures Onless evidenced otherwise, it is not son more than ten years after fiscal year-end.

The Company recognizes deferred tax assets that have not been recognized due to expiry The Company recognizes deferred tax assess that has not exceed ten years.
of the ten-year recovery period if the future reversal period if this and success from of the ten-year recovery penount the vare sufficient liabilities derived from temporary tax differences.

The deferred tax assets and liabilities are measured according to anticipated tax rates for the fiscal years in which they will be recovered or settled, respectively.

Deferred tax assets and deferred tax liabilities are recognized on the balance sheet as non-Defened tax assets and deferred tax has national was and realization or settlement.
current assets or liabilities, regardless of the expected date of realization or settlemen

a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail

Código seguro de verificación (CSV): xlvfjCSHJswnKZUFv5fe	COPIA ELECTRONICA
Esta es una copia auténtica imprimible de un documento por la CNMV, según el artículo 27.3 c) de la Ley 39/2015, de 2 de octubre. Su autenticidad puede ser contrastada a través de la siguiente dirección: https://sede.cnmv/LibreAccess/CSV.aspx

f) Revenue and expenses

Revenue and expenses are measured in accordance with the General Chart of Accounts.

Revenue from services provided are recognized when the transaction earnings are estimated reliably, taking into account the percentage of completion of the service at the close of the fiscal year.

If the gains or losses from providing a service cannot be estimated reliably, revenue is only recognized to the extent to which recognized expenses are recoverable.

Given the Company's activity, the accrued dividends and other revenue from the funding granted to investees are included under "Revenue," and therefore, pursuant to the provisions of the Spanish Accounting and Auditing Institute (ICAC), they are recorded under that heading on the income statement.

g) Provisions and contingencies

Provisions are recognized when there is a current obligation, whether legal or implicit, as a result of a past event, and it is estimated that there will be a probable outflow of funds that include future economic benefits.

They are measured at the fiscal year-end at the present value of the best possible estimate of the amount needed to cancel or transfer the obligation to a third party. The resulting adjustments are recorded when the provision is discounted as a financial expense on an accruals basis.

The compensation to be received from a third party on settling the obligation, provided that there is no doubt that it will be received, does not entail a decrease in the debt, and the collection right is recognized in the asset whose amount will not exceed the amount of the obligation recorded in the accounts.

Personnel expenses h)

Remuneration for employees may be short-term, post-employment benefits, compensation for termination, other medium and long-term remuneration, and sharebased payments.

Short-term remuneration

These are posted according to the services provided by employees on an accrual basis.

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevall

Post-employment benefits

These essentially consist of defined contribution plans and defined benefit plans, as well as life insurance covering death between the ages of 65 and 77.

Defined contribution plans

These are those in which the Company makes pre-determined contributions to a separate company (whether linked to the Group or external) and has no legal or implicit obligation to make any additional contributions in the event of an insufficiency of assets to honor the payment of benefits. The obligation is limited to the contribution agreed on to deposit in a fund and the amount of benefits to be received by employees is determined by the contributions made plus the yield obtained on the investments made by the fund.

Defined benefit plans

These are post-employment benefit plans that differ from defined contribution plans.

The liability recognized on the balance sheet for defined benefit pension plans is equal to the present value of the defined benefits obligation on the balance sheet date less, where applicable, the fair value of plan assets.

The defined benefit obligation is determined separately for each plan using the projected credit unit actuarial valuation method.

Actuarial gains and losses are recognized in equity.

All the obligations for defined benefit plans that remain on the balance sheet correspond to retired personnel.

Compensation for termination

Compensation for termination is recognized as a liability and expense when there is a proven agreement to rescind the work relationship before the normal date of employee retirement or when there is an offer to encourage voluntary rescission of the contracts.

Other medium- and long-term remuneration and share-based payments

Other long-term remuneration besides those described in the preceding paragraphs and referring specifically to the award for years of service or time with the company are recorded in line with the aforementioned principles; the only exceptions are past service costs, which are recognized immediately and recorded as an offsetting liability under the

The English version is a translation of the original in information purposes only. In case of discrepancy, the Spanish version shall prevail.

heading "Long-term provisions", and actuarial gains and losses, which are recorded on the income statement.

In 2019, a new medium-term incentive plan was approved for certain members of the in 2015, a new modiative team. The extraordinary, non-cumulative and multi-year, commencing January 1, 2019 and ending March 31, 2022, with payment of part of the conninenoning sundary a) a) = 2) = 2025. The payment of incentives is dependent on incentives deferred to the portspecific objectives, as well as the director remaining in the fuming certain oorporate and partly in cash (50%) and partly in MAPFRE S.A. shares (50%), and is subject to reduction or recovery clauses.

At the close of each year of the plan, fulfillment of the objectives is evaluated and the amount accrued is recorded on the income statement, with a credit to a provisions account amount accruculism recerded in the equity for the part corresponding to for the part of basil reincentive to be received in MAPFRE S.A. shares is measured taking into account the fair value of the assigned equity instruments.

Each year, until the vesting period date, the number of equity instruments included in the Each year, and the transaction amount is adjusted. No additional adjustments are made after the vesting date.

The previous medium-term incentive plan approved in 2016 expired in fiscal year 2018.

Related-party transactions i)

Transactions with related parties linked to the usual activities of the Company are Transactions with Telated partions and are recorded according to the aforementioned valuation rules.

The English version is a translation of the original in Spanish for information purposes only. In asse of discrepancy, the Spanish version shall prevail.

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5. PROPERTY, PLANT AND EQUIPMENT

The accompanying table shows the movements under this heading for the last two fiscal years:

HEADINGS	OPENING BALANCE		INFLOWS		OUTFLOWS		CLOSING BALANCE
	2019	2018	2019	2018	2019	2018	2019	2018
Land and buildings	13,454	13,448		6	-		13,454	13,454
Facilities and other property, plant and equipment	8,041	5,591	578	2,532	(197)	(82)	8,422	8,041
Fixed assets in progress and advance payments	44.00		179				179
TOTAL COST	21,495	19,039	757	2,538	(197)	(82)	22,055	21,495

Cumulative amortization	(5,269)	(4,220)	(1,259)	(1,066)	82	17	(6,446)	(5,269)
NET TOTAL	16,226	14,819	(502)	1,472	(115)	(65)	15,609	16,226

Thousands of euros

The main additions in both fiscal years correspond to disbursals for improvements to property, plant and equipment.

The depreciation of items of property, plant and equipment is calculated on a straight-line basis The depreciation of liems of propervition rates applied by groups of items:

ITEM GROUPS	% DEPRECIATION
	2
Buildings	। ਦ
Vehicles Furniture and fittings	10
Data processing equipment	25

No items of property, plant and equipment were acquired from Group companies or associates in the last two fiscal years.

No items of property, plant or equipment are located outside Spanish territory.

At the close of the last two fiscal years, there were no fully depreciated assets in use.

The Company has insurance policies covering the net book value of property, plant and equipment.

The English version is a translation of the original in Spanish for Information purposes only. In ease of discrepancy, the Spanish version shall prevail.

6. INTANGIBLE FIXED ASSETS

The accompanying table shows the movements under this heading for the last two fiscal years:

HEADINGS	OPENING BALANCE		INFLOWS		OUTFLOWS		CLOSING BALANCE
	2019	2018	2019	2018	2019	2018	2019	2018
Computer applications	15,982	15,824	185	425	(83)	(267)	16,084	15,982
TOTAL COST	15,982	15,824	185	425	(83)	(267)	16,084	15,982
Cumulative amortization	(14,860)	(13,229)	(798)	(1,631)	2	en m	(15,656)	(14,860)
NET (OTAL	1,122	2,595	(୧୯୬)	(1,206)	(81)	(267)	473	1,122

The main additions in both fiscal years correspond to disbursals for the development of current computer applications and the purchase of new licenses.

The annual amortization rate is 33%.

There are no intangible fixed assets outside Spanish territory.

At the close of the last two fiscal years, there were no fully depreciated assets in use.

LEASES

Operating leases

The Company is the lessee in operating leases on a building. The contract is for a one-year term and may be extended by one-year increments if neither party informs the other of its desire to terminate the contract giving two months' notice. There is no restriction on the lessee whatsoever regarding the prerogative to sign these leases.

The future minimum payments to be paid until the end of the lease term on non-cancellable operating leases amount to 3,587,000 euros, calculated as on December 31, 2019 (2,897,000 euros as on December 31, 2018).

Leasing expenses registered in fiscal years 2019 and 2018 amount to 3,547,000 euros and 2,854,000 euros, respectively.

The English version is a translation of the original in Spanish for information purposes only. In ase of discrepancy, the Spanish version shall prevail.

Código seguro de verificación (CSV): xIvfjCSHJswnKZUFv5fe	COPIA ELECTRÓNICA
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8. FINANCIAL INSTRUMENTS

The following table shows the book value of the financial assets recorded in the last two fiscal years.

Financial assets

A .- Long-term financial instruments
Class	Equity Instruments		Debt securities		Credit derivatives and Other		Total
Category	2019	2018	2019	2018	2019	2018	2019	2018
Loans and receivables Assets available for sale	-	-	-	**	342,623	383,201	342,623	383,201
- Valued at fair value	21,905	19,189	-	-		***	21,905	19,189
TOTAL A	21,905	19,189	-	-	342,623	383,201	364,528	402,390
				B .- Short-term financial Instruments
Class	Equity instruments		Debt securities		Credit derivatives and Other		Total
Category	2019	2018	2019	2018	2019	2018	2019	2018
Loans, receivables and other assets	44	+++	---	��	196,842	200,794	196,842	200,794
TOTAL B	-	t	-	-	196,842	200,794	196,842	200,794

TOTAL A + B	21,905	19,189	-	am	539,465	583,995	561,370	603,184

Financial liabilities

The book value of the financial liabilities corresponding to the last two fiscal years is shown below.

Class Debentures and other negotiable Loans and Other Tota Due to credit institutions securities 2019 2018 2019 2018 2018 2019 2019 2018 Category 2,578,617 રૂસ્દર્ 2,699,919 2,088,252 ડેરી જેવી સ Debits and payables 610,000 490,000 2,089,554 Liabilities designated at fair value through gains or losses: 4.4 Other ---- t 2,578,617 ਤੇਵਿੰਟ 2,699,919 ਤੇ ਦ 2,088,252 TOTAL A 610,000 490,000 2,089,554 B .- Short-term financial instruments Class Debentures and other negotiable Loans and Other Total Due to credit institutions securities 2018 2018 2019 2018 2019 2019 2018 2019 Category 276,904 240,567 128,745 92,408 36,337 Debits and payables 36,337 Liabilities designated at fair value through gains or losses: Other 276,904 92,408 240,567 128,745 36,337 36,337 TOTAL B - - 2,828,664 2,855,521 240,932 2,125,891 2,124,589 92,773 TOTAL A + B 610,000 490,000	A.- Long-term financial instruments

The English version is a translation of the original in Spanish for information purposes only. In asse of discrepancy, the Spanish version shall prevail.

MAPFRE S.A.

Bank	Maturity	Limit		Drawn down
		2019	2018	2019	2018
BANCO SANTANDER	26.02.2024	1,000,000	1,000,000	610,000	490.000
CARTERA MAPFRE S.L.U.	10.09.2020	400,000	400,000	-
Total		1,400,000	1,400,000	610,000	490,000

Credit line limits at December 31 of the last two fiscal years are indicated below.

Thausands of euros

Banco de Santander is the agent bank of the aforementioned line of credit, which is a syndicated loan with other banks and which bears interest at a rate pegged to market variables. In fiscal year 2018, it was renewed, its conditions modified and its maturity extended. Among the modified conditions, it was converted into sustainable financing, linking its interest also to the Group's sustainability parameters. As stipulated in the contract, in January 2020, its maturity was extended from February 2024 to February 2025.

Accrued interest payable on the line of credit during the period amounted to 2,186,000 euros (2,273,000 euros in 2018).

The line of credit granted by CARTERA MAPFRE, S.L.U. bears interest at a variable rate tied to the three-month Euribor plus a spread of 1.5%, and may be extended for successive one-year periods.

The maturities of financial instruments in the last two fiscal years, without considering the financial discount, are shown below:

Fiscal year 2019

	Maturity in
HEADINGS	2020	2021	2022	2023	2024	Subsequent	balance
Financial assets
Other investments	196,842	50,500	50,500	50,500	50,500	140,623	539,465
Total financial assets	196,842	50,500	50,500	50,500	50,500	140,623	539,465
Financial liabilities
Debentures and other negotiable - securities	63,125	63,125	63,125	63,125	63,125	2,293,750	2,609,375
Due to credit institutions	1,678	1,678	1,678	1,678	611,678		618,390
Other financial liabilities	64,609	----	44 10	***	erne	રૂદર	64,974
Total financial liabilities	129,412	64,803	64,803	64,803	674,803	2,294,115	3,292,739
Thationald of allead

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail

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mapfre s.a.

Fiscal year 2018

HEADINGS	Maturity In				Closing
	2019	2020	2021	2022	2072	Subsequent	balance
Financial assets
Other investments	200,794	50,500	50,500	50,500	50,500	181,201	ਟ83 ਫ਼ੈਰਟ
Total financial assets	200,794	50,500	50,500	50,500	50,500	181,201	283,995
Financial liabilities
Debentures and other negotiable - securities	63,125	63,125	63,125	63,125	63,125	2,320,538	2,636,163
Due to credit institutions	490,150	-	40.10	20.99	---	-	490,150
Other financial liabilities	217,754	-	***		ww	ર્કર	218,119
Total financial liabilities	771,029	63,125	63,125	63,125	63,125	2,320,903	3,344,432

Information regarding the income statement and equity

The following table provides information regarding the income statement and the equity of financial instruments for the last two fiscal years:

	Financial		Impairment
HEADINGS	income or expense			Registered loss	Reversal gains
	2019	2018	2019	2018	2019	2018
Financial assets
Equity instruments	601,546	741,258	(51,037)	(151,622)
Receivables	14,717	8,860	ar
Trading portfolio and other	ww
Other financial assets	371	394
Impairment and result of disposal of financial instruments	4,074		t
Foreign exchange differences	(4)	(15)
Subtotal	620,704	750,497	(51,037)	(151,622)
Financial liabilities
Debt with Group companies	(1,431)	(11,663)	--
Debt with third parties	(68,457)	(55,146)
For update of provisions	(198)	(198)
Subtotal	(70,083)	(67,007)				----
TOTAL	550,621	683,490	(51,037)	(151,622)

Thousands of euros

Fair value gains or losses on equity instruments correspond to changes in valuation adjustments in Group companies and associates and in the available-for-sale portfolio, as shown below:

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

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Name	(Impairment) Reversal year 2019	(Impairment) Reversal year 2018
MAPFRE INMUEBLES	1,447	2,122
MAPFRE ASISTENCIA	(46,882)	(151,429)
DESURCIC	(2)	(6)
PREMINEN PRICE COMPARISON HL		(2,309)
INSPOP-COMPARE (ADMIRAL GROUP)	(5,600)
TOTAL	(51,037)	(151,622)

Thousands of euros

During the year the Company sold 1,013,484 shares in MAPFRE RE, generating a profit of 9,464,000 euros.

The accrued dividends and other revenue from the funding granted to investees are recognized under "Revenue," as established in note 4.f).

Group companies and associates

Annex 1 of the annual report contains details of the Group companies and associates in which direct equity investments have been held in the last two fiscal years.

The results of companies included in the aforementioned annex correspond entirely to ongoing operations.

In compliance with Article 155 of the Recast Text of the Spanish Limited Liability Companies Act, the corresponding notifications were made, when applicable, to investees.

The main operations undertaken in the last two fiscal years with Group companies and associates are described in Note 18 of the annual report.

The minority shareholders of the affiliate MAPFRE RE have a put option on the shares of that company. If exercised, MAPFRE or a MAPFRE Group company would have to acquire the shares from the selling minority shareholder. The purchase price for the shares will be calculated using the previously agreed formulas in each case. As on December 31, 2019 and 2018, taking into account the variables included in the aforementioned formula, the commitment assumed by the Group in the event of exercising the option would amount to an approximate amount of 108.75 and 98.09 million euros, respectively.

Note 18 "Related-party transactions" details the amounts of capital increases of Group companies over the last two fiscal years.

The English version is a translation of the original in information purposes only. in case of discrepancy, the Spanish version shall prevail

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autenticidad puede ser contrastada a través de la siguiente dirección: https://sede.cnmv/LibreAccess/CSV.aspx

In March 2019, the administrative authorization to carry out the business restructuring operation of MAPFRE GLOBAL RISKS was obtained, through which:

The purely insurance or reinsurance activities of MAPFRE GLOBAL RISKS, together with the assets and liabilities linked to them, were transferred to MAPFRE ESPAÑA and MAPFRE RE, respectively.
An entity was created that will continue the operations of MAPFRE GLOBAL RISKS in the analysis and underwriting of large industrial and commercial risks, and will act as an agent of MAPFRE ESPAÑA and MAPFRE RE.

As a result of this corporate restructuring, a positive impact of 90,725,000 euros in equity was recorded during the year and has been included under the "Other Reserves" heading.

Financial instruments risk

Credit and market risks are managed centrally through the MAPFRE Group Investment Area, which applies a prudent investment policy to mitigate exposure to these kinds of risks.

Liquidity is managed by the Company, which maintains sufficient balances of current assets and lines of credit to cover any event derived from its obligations. It also has the Group's support for financing operations when additional liquidity is required.

There were no significant amounts in the last two years regarding financial assets exposed to interest rate risk.

The following table shows the significant information for the last two years regarding the level of exposure to the interest rate risk of financial liabilities:

		Amount of the liability exposed to risk
Item	Interest rate		Fair value		Not exposed to risk		Total
	2019	2018	2019	2018	2019	2018	2019	2018
Issue of debentures and other negotiable securities	2,125,891	2,124,589	44.00	****	-	***	2,125,891	2,124,589
Other financial liabilities	-	----	રેક્ટ	365	610,005	490,043	610,370	490,408
Total	2,125,891	2,614,632	રૂદર	રૂકર	610,005	490,043	2,736,261	2,614,997

Thousands of euros

All amounts corresponding to financial assets and liabilities are denominated in euros, with the exception of holdings in entities located overseas.

The English version is a translation of the original in Spanish for information purposes only. In essen shall prevail.

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9. SHAREHOLDERS' EQUITY

SHARE CAPITAL

The Company's share capital as on December 31, 2019 and 2018 was represented by 3,079,553,273 shares with a face value of 0.10 euros each, fully subscribed and paid-up. All shares carry the same political and economic rights.

All shares representing the Company's share capital are admitted to official trading on the Madrid and Barcelona stock markets.

The Annual General Meeting of March 9, 2018 authorized the directors of the Company to increase capital up to a maximum of 153,977,663.65 euros, equivalent to 50% of the share capital at the time. This authorization was granted for a period of five years. Furthermore, the directors were authorized to issue analogous fixed income securities or debentures, convertible or not, for a maximum amount of 2 billion euros.

CARTERA MAPFRE directly held 67.6% of the Company's share capital as on December 31 of the last two fiscal years.

SHARE PREMIUM

This reserve is unrestricted and corresponds to the provisions made as a result of the capital increases, as indicated below.

DATE	AMOUNT
June 1985	200%	વેટર
October 1985	300%	4,015
January 1986	600%	11,040
June 1986	600%	2,428
January 2007	3,192%	3,320,281
	TOTAL

Thousands of euros

LEGAL RESERVE

The legal reserve, which at the end of the last two years amounted to 61,591,065 euros, cannot be distributed to shareholders unless the Company is liquidated. In that case, it may only be used to offset potential losses.

The English version is a translation of the original in Spanish for information purposes only. In asse of discrepancy, the Spanish version shall prevail.

Código seguro de verificación (CSV): xlvfjCSHJswnKZUFv5fe	COPIA ELECTRONICA
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autenticidad puede ser contrastada a través de la siquiente dirección: https://sede.mmv/libreAccess/CSV.aspx

OTHER RESTRICTIONS ON THE AVAILABILITY OF RESERVES

"Reserves" includes reserve for redenomination of the share capital to euros, which in accordance with Article 28 of Law 46/1998 may not be distributed. Additionally, a capitalization reserve totaling 48,857,000 euros is included, which will be available once five years have elapsed since its creation.

TREASURY STOCK

As a result of the events occurring in the fiscal year, a positive impact in the amount of 910,979.10 euros was registered (1,930,622.54 euros in fiscal 2018) and this has been included under the heading "Other Reserves".

At the close of the fiscal year, the Company owned 30,489,839 treasury shares (24,431,890 in 2018), which represented 0.9901% of capital (0.7934% in 2018) at an average of 2.09 euros per share (1.97 in 2018).

The total face value of the treasury stock acquired was 3,048,984 euros in 2018).

10. NON-CONVERTIBLE DEBENTURES

At December 31, 2019 and 2018, the balance of this account included the face value of the debentures issued by the Company and was represented through book entries, the most significant terms and conditions of which are as follows:

	Nominal Book value		Outstanding Interests		Issue date	Expiration date	Coupon	Market	Rating
Description	amount	31/12/2019	31/12/2018	31/12/2019	31/12/2018
September 2018 Issue	500,000	496.761	496.457	6.498	6.498	07-09-18	07-09-48	4.13%	ALAF	BB-
March 2017 Issue	600.000	598.034	597.808	19.777	19.777	31-03-17	31-03-47	4.38%	AJAF	BBB
May 2016 Issue	1.000.000	994.759	993.987	10.062	10.062	19-05-161	19-05-26	1.63%	ALAF	1
TOTAL	2,100,000	2.089.5541	2.088.252	36.337	36.337

Thousands of euros

The most relevant conditions related to subordinated obligations are detailed below.

The English version is a translation of the original in Spanish for information purposes only. In ase of discrepancy, the Spanish version shall prevail.

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September 2018 issue

This issue included an initial call option on September 7, 2028, with the interest payable from this date up to 2048 being the three-month Euribor plus 4.30%, payable quarterly.

March 2017 issue

This issue included an initial call option on March 31, 2027, with the interest payable from this date up to 2047 being the three-month Euribor plus 4.54 percent, payable quarterly.

The issuer is obliged to defer interest payments in the case where there is any non-compliance with the Solvency Capital Requirement or Minimum Capital Requirement, the pertinent regulatory has prohibited interest payments, or the issuer cannot settle the liabilities that are past due and payable. Redemption will occur in special cases as a result of reform or modification of tax regulations, due to lack of interchangeability of the issuer's own funds and as a result of a change in treatment by credit ratings agencies.

11. FORFIGN CURRENCY

At the end of the last two years there were no significant amounts of asset and liability items denominated in foreign currency.

12. FISCAL SITUATION

Since 1985, the Company has been included for corporate tax purposes in Tax Group 9/85, consisting of the Company and those subsidiaries that meet the requirements to be eligible for this tax regime.

In 2019, the following companies belonged to Tax Group No. 9/85:

MAPFRE S.A.; MAPFRE RE, COMPAÑÍA INTERNACIONAL DE REASEGUROS S.A.; MAPFRE INMUEBLES S.G.A.; DESARROLLOS URBANOS CIC S.A.; SERVICIOS INMOBILIARIOS MAPFRE S.A.; MAPFRE ASISTENCIA, CIA. INTERNACIONAL DE SEGUROS S.A.; IBEROASISTENCIA S.A.; IBEROASISTENCIA CONSULTING DE SOLUCIONES Y TECNOLOGÍAS S.A.; MAPFRE INTERNACIONAL S.A.; MAPFRE VIDA S.A. DE SEGUROS Y REASEGUROS SOBRE LA VIDA HUMANA; MAPFRE INVERSIÓN S.V.S.A.; MAPFRE ASSET MANAGEMENT S.G.I.I.C.S.A.; MAPFRE VIDA PENSIONES S.G.F.P. S.A; CONSULTORA ACTUARIAL Y DE PENSIONES, MAPFRE VIDA S.A.; GESTIÓN MODA SHOPPING S.A.; MIRACETI S.A.; MAPFRE ESPAÑA S.A.; MULTISERVICIOS MAPFRE S.A.; MAPFRE TECH S.A.; GESTIÓN DE CENTROS MEDICOS MAPFRE S.A.U.; MAPFRE PARTICIPACIONES S.A.; MAPFRE VIDEO Y COMUNICACIÓN S.A.; CENTRO DE EXPERIMENTACIÓN Y SEGURIDAD VIAL MAPFRE S.A.; CLUB MAPFRE S.A.; MAPFRE CONSULTORES DE SEGUROS Y REASEGUROS S.A.; MAPFRE AUTOMOCIÓN S.A; VERTI ASEGURADORA CIA DE SEGUROS Y REASEGUROS S.A.; MEDISEMAP AGENCIA DE SEGUROS S.L.; MAQUAVIT INMUEBLES S.L.; MAPFRE AM INVESTMENT HOLDING S.A.U.; FUNESPAÑA S.A.; SERVICIOS FUNERARIOS

FUNEMADRID S.A.; ALL FUNERAL SERVICES S.L.; FUNERARIAS REUNIDAS EL BIERZO S.A.; GAB MANAGEMENT & CONSULTING S.R.L.; SALUD DIGITAL MAPFRE S.A.; MAPFRE GLOBAL RISKS AGENCIA DE SUSCRIPCIÓN S.A.; RISK MED SOLUTIONS S.A.

The reconciliation of the accounting profit to the corporate tax base for the last two years is shown in the accompanying table.

RECONCILIATION OF THE BOOK RESULT WITH THE TAXABLE RATE OF THE CORPORATION TAX
ltern	Income statement		Revenue and expenses posted directly to equity		TOTAL
	2019	2018	2019	2018	2019	2018
Balance of revenue and expenses of the year	443,093	493,455	10.0	-	443,093	493,455
Corporation tax	(38,452)	(36,017)	i		(38,452)	(36,017)
Permanent differences	(559,163)	(583,535)			(559,163)	(583,535)
Temporary differences:
- originating in the year	8,052	9,526			8,052	9,526
originating in previous years	(20)	(17,980)		44 .	(20)	(17,980)
Compensation of negative tax bases of previous years		-	40 me	-
Individual taxable rate (fiscal result)	(146,520)	(134,551)			(146,520)	(134,551)
Permanent differences for fiscal consolidation	(3,325)	(2,318)	--		(3,325)	(2,318)
Individual taxable rate after consolidation	(149,845)	(136,869)			(149,845)	(136,869)

Increases and decreases in the past two years:

Increases due to permanent differences originating in the income statement relate to expenses that are not tax deductible, including contributions made to support programs for exceptional public-interest events pursuant to Law 49/2002, and valuation adjustments to equity instruments (equity investments in Group companies and associates) duly accounted for.

The amount of the decreases due to permanent differences arising from the income statement corresponds to the tax-exempt dividends, as well as the income obtained in the transfer of shares in investee companies that meet the requirements to apply the exemption.

The increases due to temporary differences originating in the income statement correspond principally to expenses that are considered to be tax-deductible for pension commitments and other staff commitments.

Decreases due to temporary differences originating in prior years on the income statement primarily relate to: the recovery of adjustments for pension commitments and to the application of provisions for other staff commitments that were not deductible in the fiscal year they were recorded; the recovery of a tenth of the amortization and depreciation of intangible fixed assets and plant, property and equipment that was not tax deductible in 2013 and 2014;

The English version is a translation of the original in Spanish for information purposes only. In asse of discrepancy, the Spanish version shall prevail.

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and the recovery of the impairment loss on equity instruments that was not tax-deductible when it was provisioned for.

Increases due to the inclusion of negative temporary differences from previous years correspond to the recovery of the provision that was deducted for tax purposes in previous years due to impairment of the investee portfolio, which is subsequently eliminated in the calculation of the consolidated tax base of fiscal group 9/85.

Shown below for the periods ended December 31, 2019 and 2018 are the main components of the corporate tax expense from continuing operations and the reconciliation between the corporate tax expense for and the sum of multiplying accounting profit by the applicable tax rate.

	Amount
ltem	2019	2018
Tax expense
Result before taxes from ongoing operations	404,641	457,438
25% of the result before taxes from ongoing operations	(101,160)	(114,360)
Tax effect of the permanent differences	139,791	145,884
Permanent differences for fiscal consolidation
Tax incentives for the year	311	2,825
Total (expense)/revenue from current tax originating in the year	38,942	34,349
Expense from current tax originating in previous fiscal years	(490)	1,668
Adjustment to temporary differences Law 27/2014 (General Provisions)
(Expense)/revenue for tax of ongoing operations	38,452	36,017
Tax on profits to be (paid)/received	38,452	36,017
Taxes withheld and payments on account
Temporary differences	(1,169)	2,693
Tax effect of capital increase expenses posted to equity
Tax credits and incentives applied, registered in previous years and applied in the current year	490	(1,668)
Tax on profits from discontinued operations
Net tax on profits to be (paid)/received	37,173	37,042

Thousands of euros

The English version is a translation of the original in Spanish for Information purposes only. In Spanish version shall prevail.

The table below includes tax-deductible amounts in connection with valuation adjustments to investments in Group companies, jointly controlled entities and associates, and the difference in the year in the shareholders' equity of these entities, as well as the amounts included in the tax base as a result of tax reversals and the amounts pending inclusion. In reference to the above, Royal Decree-Law 3/2016, dated December 2, introduced a new minimum reversal regime for amounts pending inclusion. This provided for a minimum recovery of a fifth of the pending amount from fiscal year 2016 onward, always provided that this amount was higher than the increase in shareholders' equity of the investee for that fiscal year and to the amount of dividends received by it. The calculation of the minimum applicable reversal is also found in the following table.

COMPANY	Deductible tax revenue		Reversal for difference in shareholders' equity		Reversal for dividends		Minimum reversal (fifth part of 2016)		Recovery made during the fiscal year		Amounts pending
	2019	Previous vears	2019	2018	2019	2018	2019	2018	2019	2018	recovery
MAPFRE INMUERLES	-	7,438	544	1,389	5		3.719	3,719	3,719	3,719	3.719
Total		7,438	544	1,389			3,719	3,719	3,719	3.719	3,719

ousands of euros

The applicable tax rate for fiscal years 2019 and 2018 was 25 percent.

The following tables offer a breakdown of the movements for years 2019 and 2018 under the "Deferred tax assets" heading, differentiating the corresponding amounts in terms of items debited or credited directly to equity.

Fiscal year 2019

	Opening	Originating from		Cancellations	Closing
ltem	balance	Results	Equity		balance
Assets
Commitments to personnel	ਰੇ 8,815	1,739		(750)	10,804
Equity instruments impairment	13,238	***	t	AA 87	13,238
Other items	4,016	375	-	(1,524)	2,867
Total	27,069	2,114	-	(2,274)	26,909

Thousands of euros

Fiscal year 2018

	Opening	Originating from		Cancellations	Closing balance
Item	balance	Results	Equity
Assets
Commitments to personnel	10,155	2,797	t	(3,137)	ਰੇ 8,75
Equity instruments impairment	13,768	ਰੇਤੋ ਹੈ। ਉਤੇ ਹੋ ਗਈ ਕੀਤੀ ਹੈ। ਉਹ ਇੱਕ ਵਿੱਚ ਇੱਕ ਵਿੱਚ ਇੱਕ ਵਿੱਚ ਇੱਕ ਵਿੱਚ ਇੱਕ ਵਿੱਚ ਇੱਕ ਵਿੱਚ ਇੱਕ ਵਿੱਚ ਇੱਕ ਵਿੱਚ ਇੱਕ ਵਿੱਚ ਇੱਕ ਵਿੱਚ ਇੱਕ ਵਿੱਚ ਇੱਕ ਵਿੱਚ ਇੱਕ ਵਿੱਚ ਇੱਕ ਵਿੱਚ ਇੱਕ ਵਿੱਚ ਇੱਕ ਵਿੱ		(1,460)	13,238
Other items	5,725	682	**	(2,391)	4,016
Total	29,648	4,409	-	(6,988)	27,069

Thousands of euros

The English version is a translation of the original in Spanish for information purposes only. In asse of discrepancy, the Spanish version shall prevail

MAPFRE S.A.

The breakdown of movements for years 2019 and 2018 under the heading "Deferred tax liabilities" is also shown below, differentiating the amounts in terms of items debit or credited directly against equity for the period.

Fiscal year 2019

		Originating from		Cancellations	Closing balance
ltem	Opening balance	Results	Equity
Liabilities
Profit from sales of equity	108				108
instruments
TOTAL	108	1	***	****	108

Thousands of euros

Fiscal year 2018

		Originating from		Cancellations	Closing balance
ltem	Opening balance	Results	Equity
Liabilities
Profit from sales of equity instruments	107				108
TOTAL	107		--------	i	108

Thousands of euros

There are no tax loss carryforwards pending offset. The tax breaks held by the Company for the last two years are shown below:

Fiscal year 2019

Modality	Year to which they correspond	Amount applied in Amount pending the fiscal year	application	Amount not registered
Double taxation deduction	2019	***	-	40.97
Other	2019	311
TOTAL		311		10.00

Thousands of euros

Fiscal year 2018

Modality	Year to which they correspond	Amount applied in Amount pending the fiscal year	application	Amount not registered
Double taxation deduction	2018		600-04	400 900
Other	2018	2825
TOTAL		2,825

Thousands of euros

The English version is a translation of the original in Spanish for information purposes only. In asse of discrepancy, the Spanish version shall preval.

In 2011, the Company applied a deduction of 2,175,741 euros for reinvestment of extraordinary profits, as referred to in Article 42 of the Recast Text of the Corporate Tax Law approved by Royal Decree-Law 4/2004 of March 5, against a tax base of 18,131,178 euros. The commitment to reinvestment was completely covered during the year by investments made by Tax Group 9/85.

In the fiscal years 2015, 2016 and 2017, and in accordance with article 25 of Corporate Tax Law 27/2014 of November 27, the Company availed itself of the tax benefit for reduction of the capitalization reserve, as the controlling company of Tax Group 9/85.

The following table shows the appropriations to capitalization reserves per year of allocation:

Fiscal year	Amount
2017	1.857
2016	12,000
2015	35,000
TOTAL	48,857

Thousands of euros

The consolidated tax return of Tax Group 9/85 for fiscal year 2019 shows a corporate tax rebate of 44,027,130 euros, recognized in the assets of the Company (51,091,834 euros in 2018), and is still awaiting a repayment from previous years of 49,787,232 euros, having received the amount of 48,356,808 euros before these accounts were formulated.

As a result of its distribution among the Group companies, the Company has registered in the last two years the following receivables and payables, generated in the period, compared to the companies dominated by the Tax Group 9/85

The English version is a translation of the original in thermation purposes only. In case of discrepancy, the Spanish version shall prevail

As a result of its distribution between the Group companies, the Company's receivables and payables recorded in the last two years, generated during the period, from/to the controlled companies in Tax Group 9/85 were as shown in the accompanying table:

		AMOUNT
COMPANY	CREDIT		DEBIT
	2019	2018	2019	2018
MAPFRE VIDA S A DE SEGUROS Y REASEG SOBRE LA VIDA HUMANA			2,124	7,320
MAPFRE RE COMPAÑÍA INTERNACIONAL DE REASEGUROS S A		7,365	7,883
MAPFRE INMUEBLES S A	980	4,498
MAPFRE INVERSION S V S A	547	269
MAPFRE VIDA PENSIONES S G F P S A	211	56
MAPFRE ASSET MANAGEMENT S G I I C S A	3,752	1,150
CONSULTORA ACTUARIAL Y DE PENSIONES MAPFRE VIDA S A			3
GESTION MODA SHOPPING S A	4	3
MIRACETI S A	108	46
MAPFRE VIDEO Y COMUNICACIÓN S A (MAVICO)	147	રેસ
MAPFRE CONSULTORES DE SEGUROS Y REASEGUROS S A	2	ਹੈ
MAPFRE ASISTENCIA CIA INTERNACIONAL DE SEGUROS S A			1,955	2,340
IBERÓASISTENCIA S A			14	66
CENTRO DE EXPERIMENTACIÓN Y SEGURIDAD VIAL MAPFRE S A	15			201
CLUB MAPFRE S A	2			3
DESARROLLOS URBANOS CIC S A (DESURCIC)			362	1,162
MAPFRE INTERNACIONAL			18,431	20,359
MULTISERVICIOS MAPFRE S A (MULTIMAP)	। ਤੇਤੇ			107
SERVICIOS INMOBILIARIOS MAPFRE S A (SERVIMAP)	50	15
MAPFRE TECH			1,752	1,267
MAPFRE AUTOMOCION			293	288
IBEROASIS CONSULTING DE SOLUCIONES Y TECNOLOGIAS S A			31	154
M PARTICIPACIONES (formerly SERVIFINANZAS)			299	4
MAPFRE GLOBAL RISKS S A				9,255
CENTROS MEDICOS MAPFRE SA			1,227	1,601
VERTI ASEGURADORA CIA DE SEGUROS Y REASEGUROS S A		51	910
MEDISEMAP AGENCIA DE SEGUROS S L		ਤੇ	18
MAPFRE ESPAÑA COMPAÑÍA DE SEGUROS Y REASEGUROS S A	25,786	16,859
FUNESPAÑA S A			90	326
SERVICIOS FUNERARIOS FUNEMADRID S A	190	67
ALL FUNERAL SERVICES S L	67	47
FUNERARIAS REUNIDAS EL BIERZO S A	104	29
GAB MANAGEMENT & CONSULTING S R L	1
POMPES FÜNEBRES DOMINGO S L		6
BIOINGENIERIA ARAGONESA	1	--		1
MAQUAVIT		ਹੈਰ	ર્સ (21
MAPFRE AM INVESTMENT HOLDING S A U			87	તેર
SALUD DIGITAL MAPFRE			2,791	17
MAPFRE GLOBAL RISKS AGENCIA DE SUSCRIPCIÓN SA	15			2
RISK MED SOLUTIONS			ਤਰੇ
TOTAL	32,115	30,519	38,370	44,569

Thousands of euros

The total amount payable to the Spanish tax authorities in 2019, and the net amount of the aforementioned receivables and payables, gives rise to the amount to be collected by the Company, namely 37,772,571.75 euros (37,042,351.99 euros in 2018).

The English version is a translation of the original in Spanish for Information purposes only. In Spanish version shall prevail.

During the past two years, no significant eliminations were made in the consolidated Tax Group due to temporary differences.

The following table breaks down the amounts pending reversal as a result of the eliminations for temporary differences of the Company in the Tax Group.

Item	Purchasing company	Amount	Year eliminated

· Shares sale
MAPFRE SOFT -	MAPFRE INTERNACIONAL S.A.	(2)	2003
MUSINI -	MAPFRE GLOBAL RISKS S.A.	(92)	2004
MAPFRE CAUCIÓN Y CRÉDITO t	MAPFRE GLOBAL RISKS S.A.	10,251	2005
MAPFRE SERVICIOS DE INFORMAT. -	MAPFRE INTERNET S.A.	1,262	2010
MAPFRE INMUEBLES S.G.A.	MAPFRE CAUCIÓN Y CRÉDITO	(נפ)	2010
MAPFRE INMUEBLES S.G.A. -	MAPFRE ESPAÑA S.A.	(1,764)	2010
MAPFRE INMUEBLES S.G.A.	MAPFRE GLOBAL RISKS S.A.	(184)	2010
MAPFRE INMUEBLES S.G.A.	MAPFRE ESPAÑA S.A.	(956)	2010
MAPFRE INMUEBLES S.G.A.	MAPFRE VIDA, S.A. DE SEGUROS Y REASEGUROS SOBRE LA VIDA HUMANA	(251)	2010
MAPFRE INMUEBLES S.G.A. t	MAPFRE ESPAÑA S.A.	(697)	2011
MAPFRE INMUEBLES S.G.A. -	MAPFRE VIDA, S.A. DE SEGUROS Y REASEGUROS SOBRE LA VIDA HUMANA	(ക്രു)	2011
MAPFRE INMUEBLES S.G.A.	MAPFRE ESPAÑA S.A.	(371)	2011
MAPFRE ESPAÑA -	MAPFRE AUTOMOCIÓN	(ਹੋਏ)	2015
MAPFRE SA -	MAPFRE INTERNACIONAL S.A.	(13)	2016
MAPFRE ESPAÑA -	MAPFRE INTERNACIONAL S.A.	207	2016
MAPFRE VIDA -	MAPFRE INTERNACIONAL S.A.	23	2016
MAPFRE GLOBAL RISKS	MAPFRE INTERNACIONAL S.A.	(7)	2016
MAPFRE GLOBAL RISKS	MAPERE ESPAÑA S.A.	(43)	2016
	Total
	7,234

The following table shows the incorporations in the consolidated Tax Group during the past two years.

			Fiscal year
Company Temporary differences		2019	2018
· Impairment Group companies	MAPFRE INMUEBLES S.G.A. 5	3,719	3,719
Total temporary differences		3,719	3,719

In accordance with current legislation, the statements filed for the different taxes may not be considered final until they have been inspected by tax authorities or the expiration period of four years has elapsed.

The English version is a translation of the original in Spanish for information purposes only. In asse of discrepancy, the Spanish version shall prevail.

Verification by tax authorities

In accordance with current legislations made by the different taxes cannot be considered definitive until they have been inspected by the tax authorities or the statute of limitations has elapsed (which is four years for Spanish companies).

During the 2019 fiscal year, the verification actions initiated on December 4, 2017 in relation to the Corporate Tax, fiscal years 2013 to 2016, referred to the Tax Consolidation Group No. 9/85, of which MAPFRE S.A. is the controlling entity. Likewise, and as regards the Value Added Tax (hereinafter, VAT), the Company was informed in its capacity as representative of the VAT Group No. 87/10, the initiation of verification actions for the years 2014 to 2016. Insofar as MAPFRE S.A. is concerned, the actions extend to all taxes to which it is subject individually for the years 2014 to 2016 and to Corporation Tax for the year 2013.

To date, in relation to MAPFRE S.A., minutes have been formalized in conformity and disagreement relating to the 2014-2016 fiscal years on the withholdings for personal work (mainly, in relation to exemption from severance pay and reduction of irregular returns) without the conforming document that was signed having had a significant impact on results. Regarding the document signed in disagreement, for irrelevant amounts, the resolution of the allegations made against the minutes is pending.

MAPFRE S.A. considers that, according to the criteria expressed by internal tax advisors, the regularizations practiced have no significant impact on the individual annual accounts, in that there are strong defense arguments pertaining or that they will in fact be appealed. Consequently, no provision has been recorded for this concept.

The Inspection continues its course and the minutes that are finally initiated in relation to the Corporation Tax and VAT (mainly in matters of deductibility of personnel expenses, compensation of negative tax bases and pro rata deduction of VAT) will be signed in accordance and in disagreement, also considering the insignificant impact on results of the minutes that are signed in compliance and the solid defense arguments of MAPFRE's position in the minutes that are signed in disagreement, which is why specific provision for this concept has not been registered.

Once these inspection actions are completed, the periods from 2017 to 2019 will be subject to revision.

Business restructuring operations

In March 2019, administrative authorization was obtained to carry out the total spin-off operation of the MAPFRE GLOBAL RISKS COMPAÑÍA DE SEGUROS Y REASEGUROS SA entity, which had been agreed in 2018, in favor of the MAPFRE RE COMPAÑÍA DE REASEGUROS SA, MAPFRE ESPAÑA COMPAÑÍA DE SEGUROS Y REASEGUROS SA, MAPFRE PARTICIPACIONES SA and MAPFRE GLOBAL RISKS SUBSCRIPTION AGENCY entities.

The English version is a translation of the original in Spanish for Information purposes only. In Spanish version shall prevail.

MAPFRE S.A.

For the purposes of the provisions of article 86 of Law 27/2014 of Corporation Tax, MAPFRE S.A., as a partner of the spin-off entity, provides the following information:

· The accounting and tax value of the securities delivered was 529,066 886 euros.

· The amount accounted for in relation to the securities received was 619,792,379 euros.

During 2016, the merger by absorption of MAPFRE AMÉRICA S.A. (absorbing company) and MAPFRE INTERNACIONAL S.A. (absorbed company) into MAPFRE INTERNACIONAL S.A., took place, with the absorbed company changing its name to MAPFRE INTERNACIONAL S.A.

Both transactions were covered by the Special Regime foreseen in Chapter VII, Title VII of Corporate Tax Law 27/2014 of November 27.

On September 6, 2013, 100 percent of the shares of SEGUROS GERAIS held by MAPFRE INTERNACIONAL were spun off to MAPFRE FAMILIAR. MAPFRE S.A. is the sole partner of the companies involved in the transaction.

On February 22, 2011, the capital of MAPFRE VIDA was increased via non-monetary contributions from the companies CAJA CASTILLA LA MANCHA VIDA Y PENSIONES DE SEGURÓS Y REASEGUROS and UNIÓN DUERO COMPAÑÍA DE SEGUROS VIDA S.A.

On June 6, 2011 the capital of MAQUAVIT INMUEBLES was increased via the contribution of the holdings of the company MAPFRE QUAVITAE – a transaction covered under the Special Regime of Chapter VIII, Title VII of Royal Decree-Law 4/2004.

The 2011 annual report contains mandatory accounting information concerning these operations.

All the aforementioned operations were subject to the Special Regime of Chapter VIII, Title VII of Royal Legislative Decree 4/2004.

Up to 2008, the following merger operations were carried out, under the tax deferral regime established in the Corporate Tax regulations:

· Merger by absorption of MAPFRE-CAJAMADRID HOLDING DE ENTIDADES ASEGURADORAS S.A. by MAPFRE S.A.
· Merger by absorption of MAPFRE AUTOMOBILES, COMPAÑÍA DE SEGUROS Y REASEGUROS S.A., MAPFRE CAJA SALUD, COMPAÑÍA DE SEGUROS, S.A. and MAPFRE GUANARTEME, COMPAÑÍA DE SEGUROS DE CANARIAS S.A. by MAPFRE SEGUROS GENERALES, COMPAÑÍA DE SEGUROS Y REASEGUROS S.A. (which changed its company name to MAPFRE FAMILIAR, COMPAÑÍA DE SEGUROS Y REASEGUROS S.A.).

The English version is a translation of the original in Spanish for Information purposes only. In asse of discrepancy, the Spanish version shall prevail.

· Merger by absorption of MAPFRE AGROPECUARIA, COMPAÑÍA DE SEGUROS Y REASEGUROS S.A. by MAPFRE EMPRESAS, COMPAÑÍA DE SEGUROS Y REASEGUROS S.A.
· Merger by absorption of MAPFRE AMÉRICA VIDA S.A. by MAPFRE AMÉRICA S.A.

In 2008, the capital of MAPFRE INTERNACIONAL was increased via share contributions from the Turkish company GENEL SIGORTA.

In 2007, the capital of MAPFRE INTERNACIONAL was increased via contributions from the companies MAPFRE SEGUROS GERAIS, CATTOLICA and MAPFRE USA.

In 2006, a capital increase took place in MAPFRE INTERNACIONAL through the contribution of the Company's stake in MIDDLE SEA and MAPFRE ASIAN INSURANCE CORPORATION.

On January 31, 2003 there was a capital increase in MAPFRE RE in which the Company contributed the property on Paseo de Recoletos No. 25, Madrid, which it had received in the en bloc assignment of assets and liabilities of INCALBARSA, formalized on December 27, 2000.

This property had a book value of 11,868,822.10 euros at the time of the contribution and accumulated depreciation of 1,567,104.37 euros.

As a result of the non-monetary contribution in the aforementioned capital increase, the Company received MAPFRE RE shares amounting to 30,000,000 euros.

In 2001, the Company carried out a securities redemption through which shares in MAPFRE SEGUROS GENERALES, Compañía de Seguros y Reaseguros S.A. were contributed to a capital increase of MAPFRE-CAJA MADRID, Holding de Entidades Seguradoras S.A.

The book value of the 455,054 shares of MAPFRE SEGUROS GENERALES contributed to said capital increase of MAPFRE-CAJA MADRID was 4,045,896.15 euros.
· The Company recorded the 4,946,766 shares received from MAPFRE CAJA MADRID, Holding de Entidades Aseguradoras S.A. in said capital increase at 4,045,896.15 euros.

In 2000, the Company carried out business restructuring operations consisting of the contribution of shares in MAPFRE VIDA, Sociedad Anónima de Seguros y Reaseguros sobre la Vida Humana S.A., MAPFRE CAUCIÓN Y CRÉDITO, Compañía de Seguros de Reaseguros S.A. and MAPFRE SEGUROS GENERALES, Compañía de Seguros y Reaseguros S.A. to a capital increase of MAPFRE-CAJA MADRID Holding de Entidades Seguradoras S.A.

In that same year, the global assignment of assets and liabilities of INCALBARSA S.A. was formalized in favor of the sole shareholder, CORPORACIÓN MAPFRE S.A.

The English version is a translation of the original in Spanish for information purposes only. In ass of discrepancy, the Spanish version shall prevail.

Código seguro de verificación (CSV): xIvfjCSHJswnKZUFv5fe	COPIA ELECTRONICA
Esta es una copia auténtica impimible de un documento electrónico archivado por la artículo 27.3 c) de la Ley 39/2015, de 2 de octubre. Su autenticidad puede ser contrastada a través de la siquiente dirección: https://sede.cnmv/LibreAcceso/CSV.aspx

In the annual accounts of the years in which the operations described above were formalized, the mandatory accounting information relating to them is included.

All restructuring operations previously described were subject to the Special Deferral Regime provided for in Chapter VIII of Title VII of Royal Legislative Decree 4/2004, which approved the Recast Text of the Corporate Tax Law.

VAT Group

Since 2010, and for the purposes of value added tax, the Company forms part of the VAT Group 87/10 formed by the controlling company itself, MAPFRE S.A., and those of its controlled companies that agreed to join the VAT Group when it was created.

In 2019, the following companies comprised VAT Tax Group No. 87/10:

MAPFRE S.A.; MAPFRE INTERNACIONAL S.A.; MAPFRE RE COMPAÑÍA DE REASEGUROS S.A.; MAPFRE ESPAÑA, COMPAÑÍA DE SEGUROS Y REASEGUROS S.A.; MAPFRE VIDA S.A.; MAPFRE ASISTENCIA CIA INTERNACIONAL DE SEGUROS Y REASEGUROS S.A.; BANKIA MAPFRE VIDA S.A. DE SEGUROS Y REASEGUROS; CCM VIDA Y PENSIONES DE SEGUROS Y REASEGUROS S.A.; BANKINTER VIDA SOCIEDAD DE SEGUROS Y REASEGUROS S.A.; VERTI ASEGURADORA COMPAÑÍA DE SEGUROS Y REASEGUROS, S.A; MAPFRE TECH S.A; BANKINTER SEGUROS generales, s.a. De seguros y Reaseguros.; Mapfre inversión sociedad de Valores s.a.; Mapfre asset Management SGIC S.A.; centro de experimentación y seguridad VIAL MAPFRE S.A.; MAPFRE GLOBAL RISKS AGENCIA DE SUSCRIPCIÓN S.A.

13. REVENUE AND EXPENSES

The following table shows the employee benefits paid by the Company in the last two years:

	AMOUNT
BREAKDOWN OF SOCIAL SECURITY CONTRIBUTIONS	2019	2018
Social security	7,668	6,775
Contributions to pensions	7,140	7.507
Other employee benefits	6.666	8,271
TOTAL	21.474	22,553

Thousands of euros

14. PROVISIONS AND CONTINGENCIES

The following table shows the movement in the provisions recognized on the balance sheet for the last two years.

The English version is a translation of the original in Spanish for information purposes only. In asse of discrepancy, the Spanish version shall prevail.

mapfre s.a.

HEADING		OPENING BALANCE		INCREASES		DECREASES		CLOSING BALANCE
	2019	2018	2019	2018	2019	2018	2019	2018
Long-term provisions
Long-term employee benefit obligations	11,694	15,069	1,504	2,052	(2,208)	(5,427)	10,990	11,694
Other provisions	98	245		277	(98)	(424)	***	98
Short-term provisions
Current provisions	-	-		1000	-	44.10	t
TOTAL	11,792	15,314	1,504	2,329	(2,306)	(5,851)	10,990	11,792

At December 31 of the last two fiscal years, "Long-term defined benefit obligations" primarily included:

· Defined benefit plans that are externalized, detailed in note 16 of the Annual Report, amounting to 4,599,000 euros (4,680,000 euros in 2018).
· Long service bonuses, detailed under "Personnel expenses", amounting to 3,883,000 euros (3,513,000 euros in 2018).
· Life insurance covering death between the ages of 65 and 77 years detailed in the note on measurement bases for "Personnel expenses", for 1,706,000 euros (1,437,000 euros in 2018).

At the close of the last two fiscal years, and up to the date these annual accounts were prepared, there was no evidence of the existence of contingent assets and contingent liabilities for significant amounts.

15. ENVIRONMENTAL INFORMATION

The Company did not have any environmental-related item in the last two fiscal years that might be significant or specifically included in these annual accounts.

16. MEDIUM-TERM AND LONG-TERM EMPLOYEE REMUNERATION AND SHARE-BASED PAYMENTS

Long-term remuneration

The current defined benefit and defined contribution plans are measured as described in the recognition and measurement bases.

The expense for defined contribution pension plans amounted to 7,140,000 euros in 2019 (7,507,000 euros in 2018).

The English version is a translation of the original in Spanish for information purposes only. In Spanish version shall prevail.

Existing defined benefit plans, all of them instruments taking the form of insurance policies underwritten by MAPFRE VIDA, are those in which the benefit is established based on final salaries, and entitling the beneficiary to a life annuity, tied to the annual consumer price index (CPI). They apply entirely to retired personnel.

A) Amounts recognized on the balance sheet

The reconciliation of the present value of the obligation arising from defined benefit plans in the last two years is shown below:

lte m	2019	2018
Present value of obligation as on January 1	4,680	4,751
· Current year's service costs		-
· Interest cost	195	199
• Actuarial gains and losses	49	60
· Benefits paid	(258)	(254)
· Settlements
· Other items	(67)	(76)
Present value of obligation as on December 31	4,599	4.680

Thousands of euros

The following table shows the reconciliation of the opening and closing balances of plan assets and the redemption rights for the last two years, the value of which corresponds to the mathematical provision for the policies externalizing commitments.

lte m	2019	2018
Value of reimbursement right at January 1	4,680	4,751
· Expected return from allocated assets	195	199
· Employer contributions
· Actuarial gains and losses	49	60
Benefits paid.	(258)	(254)
· Settlements
Other items	(67)	(76)
Value of reimbursement right at December 31	4,599	4,680

Thousands of euros

B) Assumptions

The main actuarial assumptions used at the close of the last two years were the mortality tables PERM/F-2000 and an annual CPI increase of three percent in both years, using an identical discount rate and expected return on assets as the products include cash flow matching.

The English version is a translation of the original in Spanish for information purposes only. In Spanish version shall prevail.

Código seguro de verificación (CSV): xlvfjCSHJswnKZUFv5fe	COPIA ELECTRONICA
Esta es una copia auténtica impimble de un documento electrónico archivado por la artículo 27.3 c) de la Ley 39/2015, de 2 de octubre. Su
autenticidad puede ser contrastada a través de la siguiente dirección: https://sede.cnmv/LibreAcceso/CSV.aspx

Other medium-term remuneration and share-based payments

The Board of Directors approved a medium-term incentive plan in 2019 that was measured and recognized on the income statement in line with indications set down in the measurement bases described in note 4 h) "Personnel expenses". No provision was made for this concept because the objectives established in the Plan were not met.

In fiscal year 2018, the total provision for this concept was reversed due to the failure to achieve the expected objectives. An amount of 3,182,000 euros has been reversed in relation to the remuneration in cash and 2,867,000 euros in equity for the part relating to share-based payments.

17. SUBSEQUENT EVENTS

There have been no significant events subsequent to year-end.

18. RELATED-PARTY TRANSACTIONS

Below are the main transactions performed with related parties over the last two years.

	Group companies		Other related parties		TOTAL
Expenses and revenue	2019	2018	2019	2018	2019	2018
1) Financial expenses	(1,431)	(11,663)	----	-	(1,431)	(11,663)
4) Leasing	(4,968)	(5,065)			(4,968)	(5,065)
9) Other expenses	(16,034)	(14,170)	-	-	(16,034)	(14,170)
EXPENSES	(22,433)	(30,898)	-	-	(22,433)	(30,898)
10) Financial Income	14,717	8,860	-	--	14,717	8,860
13) Dividends received	601,546	741,258	***	100 10	601,546	741,258
15) Provision of services	62,752	86,973	1	-	62,752	86,973
REVENUE	679,015	837,091	-	-	679,015	837,091

Thousands of euros

Other transactions	Group companies		Other related parties		TOTAL
	2019	2018	2019	2018	2019	2018
Financing agreements: credits and capital contributions delivered.	194,675	617,498		---	194,675	617,498
Amortization or cancellation of credits.	(227,500)	(257,784)			(227,500)	(257,784)
Repayment or cancellation of loans.	138,400	203,300			138,400	203,300
Dividends and other profits distributed.			304.568	304,949	304,568	304,949

Thousands of euros

The English version is a translation of the original in Spanish for information purposes only. In espanish version shall prevail.

		Group companies
Investments	2019	2018
Capital increases
MAPFRE INTERNACIONAL	44 40	199,999
MAPFRE AM INVESTMENT HOLDING S A U	5,000
MAPFRE ASISTENCIA	----	30,999
TOTAL	5,000	230,998

The following table shows the capital contributions in Group companies and associates in the last two years.

Thousands of euros

As on December 31 of the last two years, there has been an outstanding disbursement on MAPFRE ASISTENCIA shares amounting to 19,999,000 euros.

The following table shows the amount of balances receivable from and payable to Group companies at the close of the last two years:

tem	Assets		Pasivos
	2019	2018	2019	2018
Loans and receivables	487,275	525,150		138,400
Loan interest	348	3,753		28,695
Tax group	32,115	30,519	63,009	44,569
Other items	13,842	18,633	1,590	4,627
TOTAL	533,580	578,055	64,599	216,291

Thousands of euros

For the last two years, there are no financial expenses associated with the drawdown on the CARTERA MAPFRE line of credit described in Note 8.

Transactions with related parties are related to the normal trading activities of the Company and were conducted at arm's length.

Código seguro de verificación (CSV): xlvfjCSHJswnKZUFv5fe	COPIA ELECTRONICA
Esta es una copia auténtica imprimble de un docunento electrónico archivado por la citiculo 27.3 c) de la Ley 39/2015, de 2 de octubre. Su
autenticidad puede ser contrastada a través de la siguiente dirección: https://sede.cnmv/l.ibreAcceso/CSV.aspx

	Amount:
Item	2019	2018
Short-term remunerations
Salary	2,192	2,669
Short-term variable remuneration	1,643	1,805
Fixed allowance	1,805	1,927
Travel, subsistence and accommodation allowances	60
Other items	15	812
Medium-term variable remuneration	792	1,128
TOTAL	6,507	8,341
Other remuneration
Life Insurance	76	84

The following table shows the remuneration paid out over the last two years to members of the Company's Board of Directors:

Thousands of euros

The basic remuneration of external directors comprises an annual fixed amount for their membership of the Board of Directors, which totaled 110,000 euros in the last two fiscal years. The Vice Chairman-Lead Board Director has a fixed annual allocation of 110,000 euros. Members of the Steering Committee received 10,000 euros in the 2019 fiscal year (20,000 euros in 2018). In the case of the chairperson of the Audit and Compliance Committee, this amount is 68,000 euros (65,000 euros in 2018). In addition, the chairperson of a steering committee receives 60,000 euros (57,000 euros in 2018). The remuneration of members of the Audit or Compliance Committee amounts to 48,000 euros (45,000 euros in 2018) and the remaining members of steering committees receive 39,000 (37,000 euros in 2018).

In addition, the members benefit from life insurance in the event of death with an insured capital of 150,253 euros, and they also enjoy some of the benefits offered to personnel, such as health insurance.

Executive directors receive the remuneration established in their contracts, including a fixed salary, incentives of varying amounts linked to results, life and disability insurance, and other general benefits established for Company personnel. They also receive certain retirementrelated pension complements embodied in defined contribution plans in the event of retirement, externalized through a life insurance policy. All of these payments are pursuant to the remuneration policy established by the Group for its senior executives, whether they are board directors or not. In 2019, contributions to defined benefit plans were 3,809,000 euros, recognized as expenses for the fiscal year (4,385,000 euros in 2018), with the amount for accumulated rights reaching 19.791.000 and 15.502.000 euros at December 31 2019 and 2018, respectively.

Executive directors do not receive the fixed amount established for external directors.

The English version is a translation of the original in Spanish for information purposes only. In asse of discrepancy, the Spanish version shall prevail.

Código seguro de verificación (CSV): xIvfjCSHJswnKZUFv5fe	COPIA ELECTRÓNICA
Esta es una copia auténtica impimble de un documento electrónico archivado por la CNMV, según el artículo 27.3 c) de la Ley 39/2015, de 2 de octubre. Su autenticidad puede ser contrastada a través de la siguiente dirección: https://sede.cnmv.libreAcceso/CSV.aspx

With respect to short-term variable remuneration already accrued, at the close of fiscal year 2019, 2,573, 510 euros was pending payment (2,826,590 euros in 2018).

The basic remuneration for external directors is approved at the Annual General Meeting at the proposal of the Board of Directors and pursuant to the report issued by the Appointments and Remuneration Committee. The amount of the contractual remuneration for executive directors and the fixed payment for serving on the boards or on the steering committees is approved by the Board of Directors, subject to a report by the aforementioned committee.

The amount paid for public liability insurance to cover damages caused by acts or omissions on the parts of administrators reached 429,000 euros (367,000 euros in 2018).

During the last two years, the Company's directors did not undertake any operations with the Company itself or with any other Group company, either outside the scope of the companies' ordinary trading activities or not at arm's length.

During the last two years, no conflicts of interest, either direct or indirect, arose between the directors or their related parties and the Company.

The remuneration paid to C-Suite executives in the last two years is shown below:

	2019	2018
No. of senior management members	8	7
Fixed remunerations	2,209	2,124
Variable remunerations	1,258	1,192
Other remuneration	186	81
TOTAL	3,653	3,397
Life Insurance	27	31

Thousands of euros

With regard to the 2016-2019 medium-term incentive scheme, the full provision was reversed in fiscal year 2018 as the objectives set were not met.

In addition, contributions to defined contribution plans were recognized as expenses of 1,046,000 euros in fiscal year 2019 (826,000 euros in 2018).

19. OTHER INFORMATION

The following tables show the average and year-end headcount during the last two years, by category and gender.

Average number of employees

ITEM	2019		2018
	Men	Women	Men	Women
Board Directors and C-Suite	13	ব	12	2
Senior Management	ਕੇ ਪੈ	52	વેટ	ਟਤੋ
Technicians	145	142	144	146
Associates	16	52	16	ਦੇ 8
TOTAL AVERAGE NUMBER OF EMPLOYEES	268	250	267	259

Number of employees at year-end

ITEM		2019		2018
	Men	Women	Men	Women
Board Directors and C-Suite	13	4	14	2
Senior Management	97	ટેરે	ਰੇਤੇ	53
Technicians	143	147	145	153
Associates	16	48	16	58
TOTAL NUMBER OF EMPLOYEES	269	252	270	266

The table below shows the average number of employees with a disability of 33% or more employed in Spain, along with the category they belong to.

ITEM	2019	2018
Senior Management	2	2
Advisors	3	4
Associates	র্ব	4
TOTAL	9	10

The English version is a translation of the original in Spanish for information purposes only. In esse of discrepancy, the Spanish version shall preval.

Código seguro de verificación (CSV): xlvfjCSHJswnKZUFv5fe	COPIA ELECTRONICA
Esta es una copia auténtica imprimible de un documento por la CNMV, según el artículo 27.3 c) de la Ley 39/2015, de 2 de octubre. Su autenticidad puede ser contrastada a través de la siguiente dirección: https://sede.cnmv/LibreAccess/CSV.aspx

Fees charged by the external auditor are shown below. It is deemed that these fees do not compromise the independence of the auditors.

		AMOUNTS
ITEM	2019	2018
Audit services	493	465
Other verification services	173	260
Tax services
Other services	-	-
Total services of main auditor	୧୧୧	725

Thousands of euros

Other verification services include services provided by KPMG Auditores, S.L. to the Company during fiscal year 2019, which include the six-month review, the solvency review; and the report of agreed procedures on the description of (SCIIF).

In addition, other entities affiliated with KPMG International have billed the Company 63,000 euros for the independent review of the information contained in the Statement of Nonfinancial Information (EINF).

Information regarding the services provided by KPMG Auditores, S.L. to the companies linked by a control relationship to MAPFRE S.A. during the year ended December 31, 2019 is included in the Annual Accounts of MAPFRE S.A. and its subsidiary companies as of December 31, 2019.

Details of payments made to providers in the last two years are shown below.

	2019	2018
ITEM	Days	Days
Average provider payment period	20	20
Ratio of paid operations	20	20
Ratio of operations pending payment
	Amounts	Amounts
Payments made	92,892	100,939
Payments pending	5,933	3,328
Total payments for the year	98,825	104,267

Thousands of euros

The English version is a translation of the original in Spanish for information purposes only. In Spanish version shall prevail.

APPENDIX 1 Fiscal year 2019

												housands of euros
					PARTICIPATION						Earnings for the year			Impairment)	Accumulat
Name	Legal form	Address	Activity	%		Voting rights		Capital	Reserves	Other equity items	Earnings from	Other	value Book	/Reversal	mpairment ed	Dividends received
				Direct	Indirect	Direct	Indirect				operations	earnings		year
MAPFRETECH	SA.	M ajadahonda - 28222 Crta Pozuelo . 52 M adrid	IT	0.7748	99.1857	0.7748	99.657	30,990	-13,358	i	1283	-3,835	t	t	240	--
MAPFRE Internacional	SA	Majadahonda - 28222 Crta.Pozuelo, 52 M adrid	Holding	00.0000	-	100.0000	-	824.432	4.941325	-584,5 B	36,942	-58.223	4.141763	t	l	00,308
MAPFRE Re Cia. de Reaseguros	SA	Paseo de Recoletos, 25 28004 M adrid	Reinsurance	93.7719	0.0003	93.77 9	0.0003	293,284	132.922	82.485	57,502	t	778.989	-	l	87,928
internacional de Seguros y MAPFRE Asistencia, Cia Reaseguros	SA	Sor Angela de la Cruz, No. 6. 28020 Madrid.	Insurance and reinsurance	99.9970	0.0030	99.9970	0.0030	385.178	-75,259	-38.982	-13.353	-74,838	142,482	(46,882)	225.422	t
MAPFRE Inmuebles	S.G.A	M ajadahonda - 28222 Crta Pozuelo, 52 M adrid	Real estate	9.9979	89.9949	9.9979	89,9949	593,474	-97,057	-	-1848	7,3 B	55.805	1447	5192	-
M aquavit Inmuebles	S.L	M ajadahonda - 28222 Crta.Pozuelo. 52 M adrid	Real estate	00 0000	t	100.0000	-	37,436	-132	t	-94	2,557	26,662	-	l	3.52
MAPFREVida	SA	M ajadahonda - 28222 Crta Pozuelo . 52 M adrid	insurance and reinsurance	රිමි තිබෙ	l	00 0 00	ﺒﺤ	80.242	1499.57	271759	78.746	57,275	133.045	t	-	190.491
Fancy Investment	SA.	Montevideo ({Uruguay) A vda. 18 de Julio, 841	Financial	100.0000	t	00.0000	l	9,478	3,870	-5.684	ﻟﺴﺒ	997	8.580	:	1
MAPFRE Consultores de Seguros y Reaseguros	SA.	Paseo de Recoletos. 25 28004 M adrid	Advisory and management services	50.0000	49.9997	50.0000	49.9997	20	202	t	-5	22	81	-	l	t
MAPFRE Inversión	SA.	M aladahonda - 28222 Crta.Pozuelo, 50 n adrid	Securities company	0.0009	09 9 180	0.0009	068888	33.055	53,725	8,898	-14,081	55,988	ਟ	-	-	-
MAPFREAM Investment	SA	M ajadahonda - 28222 Crta.Pozuelo, 50 M adrid	Holding	00.00000	t	00.0000	--	20,000	-289	t	10	- 9	20,000	ﺷﺒﻪ	-	4
MAPFRE Asset Management	SA.	M ajadahonda - 28222 Crta.Pozuelo, 50 M adrid	management Real estate investment	0.0147	98.9052	0.0147	99.9052	2,043	-6.030	2237	-1.881	43.408	હ	t	l	l
MAPFREESPAÑA	SA	M ajadahonda - 28222 Crta.Pozuelo, 52 M adrid	Insurance and reinsurance	83.568	18.4825	83.5188	8.4825	584.624	1 25,569	590,345	280,681	-7,644	3,054,021	l	t	238,865
MAPFRE Participaciones	SA.	M ajadahonda - 28222. Crta Pozuelo, 52 M adrid	Financial	0000000	t	00.0000	l	2 B	295.337	91255	235	48,097	225855	f	num	l

The amounts for Equity Accounts and results of the companies correspond to consolidated data.

The English version is a translation of the orlginal in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

Fiscal year 2019

												Thousands of euros
					PARTICIPATION						Earnings for the year			(Impairment
Name	Legal form	Address	Activity	ర్యాల		Voting rights		Capital	Reserves	Other equity lt ems	Earnings from o perations	Other earnings	Book value i	/Reversal	Accumulated Dividends mpairment	received
				Direct	Indirect	Direct	Indirect							year
Desarrollos Urbanos	SA.	M ajadahonda - 28222 Crta.Pozuelo, 52 M adrid	Real estate	0.0784	99.944	0.0784	99.9144	383	1388	t	279	-1,117	C	2	વેટે	f
M GR A gencia de Suscripción	SA.	I M ajadahonda - 28222 Crta Pozuelo. 52 M adrid	Insurance and reinsurance	00.0000	4%	00.0000	1	80	2,045	-	-241	923	1952	-	l	-
Preminen Price Companson Holding	LTDA	Ty Admital David Street, Cardiff CF D2EH	policy price insurance アプリないでした	50.0000	t	50.0000	B	-	t	tran	44-40	t	591	-	2309	l
Total													9,592,371	-45.437	279,208
Other investments													8
Total investments in Group companies and associates													9.582.379

The amounts for Equity Accounts and results of the companies correspond to consolidated data.

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

Fiscal year 2018

@ CNMV

												Thousands of euros
					PARTICIPATION						Earnings for the year			Impairment)
Name	Legal form	Address	Activity	%		Voting rights		Capital	Reserves	Other equity items	Earnings from	earnings Other	Book value	/Reversal	mpairment Accumulat ed	Dividends received
				Direct	Indirect	Direct	Indirect				operations			year
MAPFRETECH	SA.	M ajadaho nda - 28222. Crta Pozuelo. 52 M జరగర	il	0.7748	99.1526	0.7748	99.1528	30.990	(10.887)	i	157	570	-		240	Map
MAPFRE Internacional	SA	M ajadaho nda - 28222 Crta.Pozuelo. 52 M adrid	Holding	100.0000	0.0000	00.0000	0.0000	784,432	5.69.317	(800.784)	90.014	(31051)	4.141763	l	ﺴﻴﺔ	l
MAPFRE Re Cia. de Reaseguros	SA.	Paseo de Recoletos, 25 28004 M adrid	Reinsurance	92.2454	0.0003	92.2454	0.0003	223.913	828.828	2,420	149.37	:	383.380	t	!	92,66
Internacional de Seguros y MAPFRE Asistencia, Cia Reaseguros	SA.	Sor Angela de la Cruz, No. 6. 28020 Madrid.	Insurance and reinsurance	99.9970	0.0030	0769.8970	0.0030	385.176	(64, 59)	(49,132)	(28,258)	18.63	189,364	(151429)	78.540	f
MAPFRE Inmuebles	S.G.A	M ajadaho nda - 28222 Crta.Pozuelo, 52 M adrid	Real estate	9.9977	89.9944	9.9977	89.9944	593.474	(110,932)	i	(4,615)	18,520	54.358	2,22	52,639	l
Maquavit Inmuebles	S.L.	M ajadahonda - 28222 Crta.Pozuelo. 52 M adrid	Real estate	100.0000		100.0000		37.438	1633	un	(527)	195	26.682	!	l	ﻟﺴ
MAPFREVida	SA	M ajadaho nda - 28222 Crta.Pozuelo, 52 M adrid	Insurance and reinsurance	99.9 21	-	99.9121	-	60,242	1430,542	85.313	21326	57.081	1 32,946	f	-	371972
Fancy Investment	SA.	Montevideo ((Uruguay) Avda. 18 de Julio, 841	Financial	100.0000	t	00.0000	ı	11024	4.444	(6,720)	-	483	10.18	t	i	m
MAPFRE Consultores de Seguros y Reaseguros	SA.	Paseo de Recoletos, 25 28004 M adrid	Advisory and management services	50.0000	49.99965	50.0000	49.9997	20	168	1	(2)	48	61	-	ﻌﺒﻴﻪ	t
MAPFRE Inversion	S.A.	M aladaho nda - 28222 Crta.Pozuelo, 50 M adrid	company Securities	0.0009	99.9120079	0.00009	99.9120079	33.055	149, D1	4.705	(14, 34)	55,683	ਟ	-	-	1
MAPFREAM Investment	SA.	M ajadaho nda - 28222 Crta.Pozuelo. 50 M adrid	Holding	100.0000	l	00.0000	t	15.000	(243)	--	ક્વર	-258	5.000	-	t	4
MAPFREAsset Management	SA	M ajadaho nda - 28222 Crta.Pozuelo, 50 M adrid	management Real estate nvestment firm	0.047	99.8974371	0.0147	99.89741371	2,043	(7,884)	2,155	(10,366)	41481	2	-
MAPFREESPAÑA	SA.	M ajadaho nda - 28222 Crta Pozuelo, 52 M adrid	Insurance and reinsurance	83.588	13.4825	83.5 68	6.4825	584,624	1098244	260,206	295,825	6,253	3,050,831	t	t	231083
MAPFRE Global Risks	SA.	M ajadaho nda - 28222 Crta.Pozuelo, 52 M adrid	Insurance	100.0000	f	100.0000	--	20.332	1052.384	33,489	73.91	382	529.087	-	-	45,802

The amounts for Equity Accounts and results of the companies correspond to consolidated data. The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail. CNMV Oficina: ROD MADRID Registro de Entrada Nº: 2020018771 Fecha de registro: 2020-02-12 01:18:30

Fiscal year 2018

												1 10 ประสิทธิร
					PARTICIPATION						Earnings for the year			(Impairment)	Accumulat
Name	Legal form	Address	Activity	%		Voting rights		Capital	Reserves	Other equity ltems	Earnings from	Other	Book value	/Reversal	ଚ୍ଚ ଅ	Dividends received
				Direct	Indirect	Direct	Indirect				o perations	earnings		year	mpairment
Clube M apfre do Brasil	LTDA	Autonomistas. 701Vila- CEP 06020-000 (Brazi) Yara-Osasco SP Avda dos	Consultancy	0.334	88 88888	0.3314	99.6688	51830	23,496	(88,204)	(5,680)	8,395	કરે	na	l	l
Desarrollos Urbanos	SA.	M ajadahonda - 28222 Crta.Pozuelo. 52 M adrid	Real estate	0.0784	99.937	0.0784	99.937	રૂકર	4,805	-	1,62	(4,847)	e	(8)	43
SERVIFINANZAS	SA.	M aladahonda - 28222 Crta.Pozuelo. 52 M adrid	Financial	00.0000	0.00000	00.00000	0.0000	23	વેછ	-	t	11	267	t	l	t
M GR A gencia de Suscripción	SA.	M ajadahonda - 28222 Crta.Pozuelo, 52 Madrid	Insurance and reinsurance	0000000	0.0000	00.0000	0.0000	80	ﺴﻴﺔ	-	2	(7)	80	me	B	1
Preminen Price Comparison Holding	LTDA	Ty Admital David Street, Cardiff CF 102EH	comparison policy price insurance company Online	50.0000	0.0000	50.0000	0.0000	10,000	p	-	-	(4,627)	2,891	(2,309)	2,309	t
Total													9,536,741	(151622)	233,77
Other investments													8
Total investments in Group companies and associates													9,538,749

The amounts for Equity Accounts and results of the companies correspond to consolidated data.

No companies are listed on the stock market.

(*) Recoverable amount determined based on the fair value of the company's assets and liabilities.

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

INDIVIDUAL MANAGEMENT REPORT

2019

MAPFRE S.A.

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

MAPFRE S.A.

2019 INDIVIDUAL MANAGEMENT REPORT

MAPFRE S.A. (the "Company") is a corporation (Spanish "sociedad anónima") whose main activity is the investment of its funds in real-estate assets and tradeable financial securities.

A. KEY INDIVIDUAL FIGURES

Key income statement figures are as follows:

· Dividend revenue from Group companies amounted to 601.50 million euros, down 18.86 percent on the prior year.
Operating expenses amounted to 163.2 million euros, a 1.2 percent increase on 2018.
· Financial income amounted to 0.4 million euros for the last two years.
· Financial expenses stood at 70 million euros, 4.5 percent up on the prior year.
· During the fiscal year, the Company recognized impairment allowances of 45.4 million euros in respect of equity investments in Group companies and associates (151.6 million euros in 2018).
· As a result of the foregoing, earnings before tax stood at 404.6 million euros, down 11.5 percent against the prior year.
A corporate tax rebate of 38.5 million euros was posted in 2019, compared with 36 million euros in 2018.
· Post-tax profit was 443.1 million euros, down 10.2 percent on the previous year.

The English version is a translation of the original in Spanish for information purposes only. In espanish version shall preval.

Key balance sheet figures are as follows:

MAPFRE S.A.'s shareholders' equity amounted to 7,456.5 million euros, a year-on-year increase of 72.5 million euros (1.1 percent). This rise was due to the difference between the profit for the year and the dividends paid during the year, which stood at 261.6 million euros, the final dividend for the 2018 year distributed in 2019 and 184.8 million euros for the interim dividend charged against the year's profits.

· Assets totaled 10,309.5 million euros, of which 9,929.8 million euros relate to longterm investments in Group companies and associates and 196 million euros correspond to short-term investments in Group companies and associates.

MAIN ACTIVITIES B.

The main variations in the Company's financing sources during 2019 were as follows:

Partial cancellations of loans with Group companies amounting to 333.1 million euros, and granting of new loans amounting to 227.5 million euros.
Partial cancellation of the syndicated loan, maturing in December 2023, in the amount of 247 million euros and new drawdowns of 367 million euros.

Investments in Group companies

During the fiscal year, the Company had the following expenditure in respect of investments in Group companies:

· Capital increase in MAPFRE AM INVESTMENT HOLDING S.A. of 5 million euros.

C. MAPFRE AND ITS SHAREHOLDERS

The MAPFRE share

• The table below shows the key information relating to MAPFRE shares at the end of 2019:

Number of shares outstanding	3,079,553,273 fully subscribed and paid up
Face value of each share	0.1 euros
Share class	Common, represented by book entries. All outstanding shares carry identical voting and dividend rights
Stock exchange listings	Madrid and Barcelona Stock Exchanges (continuous market)
Stock market index membership	IBEX 35; IBEX Top Dividend STOXX Europe 600 Insurance; EURO STOXX Insurance MSCI Spain; FTSE All-World; FTSE Developed Europe; FTSE4Good- and FTSE4Good IBEX2 DISI World²
ISIN code	ES0124244E34

In 2019 MAPFRE S.A. shares traded for 253 days on the continuous market with a frequency index of 100 percent. According to data published by the Spanish stock market operator (BME), an average of 5,128,636 shares were traded daily on this platform compared to 5,515,638 in 2018, a decrease of 7.02 percent. The effective average daily transaction value was 12.9 million euros, compared to 14.6 million euros in the prior year, some 11.4 percent lower.

At the end of 2019, four Spanish and international investment banks had "buy" recommendations for the Company's shares, compared to seven "hold" recommendations and nine with the stock on their "sell" lists.

¹ Indices that measure the outcome of a company's actions to uphold and support sustainable development and human rights.

The English version is a translation of the original in Spanish for information purposes only. In asse of discrepancy, the Spanish version shall prevail.

VALUE AND RETURN

The share price performance is shown in the following table, compared to two key benchmark indices (the IBEX 35 and the STOXX Europe 600 Insurance):

	1 YEAR	3 YEARS	5 YEARS
MAPFRE	1.7%	-18.6%	-16.1%
STOXX Europe 600 Insurance	24.4%	19.7%	28.8%
IBEX 35	11.8%	2.1%	-7.1%

MAPFRE's earnings per share (EPS) during the same period are shown below:

	2019	2018	2017	2016	2015
EPS (euros)	0.20	0.17	0.23	0.25	0.23
INCREASE	+15.2%	-24.5%	-9.7%	9.4%	-16.1%

SHAREHOLDER STRUCTURE AND REMUNERATION

At the end of fiscal year 2019, Fundación MAPFRE held 67.7 percent of the Company's shares, excluding treasury stock, which represented 1 percent of the shareholder structure. Spanish institutional shareholders accounted for 3.8 percent and institutional shareholders in other countries, 19.5 percent. The remaining 8 percent is held by non-institutional shareholders.

The dividend policy establishes that shareholder remuneration must be linked to the Company's earnings, solvency, liquidity and investment plans, and also aligned with the interests of all its shareholders. One of the objectives set for the three-year period 2019-2021 is to adequately remunerate shareholders.

On December 23, 2019, the interim dividend charged to 2019 profits was paid at 0.0606 euros per share (gross), after the amount corresponding to treasury stock had been applied to the remaining shares on a proportional basis. The total dividend paid out in the year was 0.145 euros per share, giving a total remuneration of 446.5 million euros.

The final dividend for fiscal year 2019 to be proposed at the Annual General Meeting amounts to 0.085 euros per share (gross). Consequently, the total dividend against 2019 earnings amounts to 0.145 euros per share (gross), representing a payout ratio of 73.3 percent.

The English version is a translation of the original in Spanish for information purposes only. In esse of discrepancy, the Spanish version shall preval.

Dividend payments and the dividend yield, calculated on an average share price basis, are indicated below:

	2019	2018	2017	2016	2015
DIVIDEND PER SHARE (euros)	0.145	0.145	0.145	0.13	0.14
DIVIDEND YIELD	5.7%	5.5%	4.9%	5.8%	4.9%

D. ENVIRONMENT

MAPFRE is committed to environmentally sustainable development, most notably the fight against climate change. Its desire to play a significant role in these issues requires a short-, medium- and long-term strategy to be in place, to which end, climate scenarios and the global context are continuously analyzed.

The Group has an Environmental Policy that is in the process of being revised with the aim of incorporating the new commitments made toward a circular economy.

During 2019, MAPFRE worked to redesign its environmental strategic model to manage all aspects associated with environmental and energy sustainability, greenhouse gas emissions and the circular economy. The model will enable plans and programs to be defined, minimizing the risks identified and paving the way to exploiting the opportunities that arise.

With regard to the carbon footprint, further progress has been made certifying greenhouse gas emissions under the UNE-EN-ISO 14064 standard, having verified the inventories of several countries.

In relation to climate change mitigation and adaptation, the measures defined in the 2020 Energy Efficiency and Climate Change Strategic Plan continue to be rolled out, resulting in the plan being completed ahead of schedule. In addition, and demonstrating our leadership on climate issues, MAPFRE has established new and ambitious objectives:

Over the medium-term, MAPFRE is committed to becoming a carbon-neutral company by 2030.

In the short-term, it is committed to becoming carbon neutral in its activities in Spain and Portugal by 2021.

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall preva

Código seguro de verificación (CSV): xIvfjCSHJswnKZUFv5fe	COPIA ELECTRONICA
Esta es una copia auténtica impimble de un documento electrónico archivado por la atículo 27.3 c) de la Ley 39/2015, de 2 de octubre. Su
autenticidad puede ser contrastada a través de la siquiente dirección: https://sede.mmv/libreAccess/CSV.aspx

Work has continued to analyze adopting the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) of the Financial Stability Board (FSB) to determine the financial impact of climate change. As part of this, MAPFRE, along with 21 other global insurers and reinsurers, is a member of the UNEP-FI Working Group. The main objective of this group is to analyze scenarios that allow financial models and metrics to be developed to adequately estimate the possible implications of climate change on business.

Furthermore, bearing in mind the impacts of climate change on our planet's biodiversity, specific conservation programs will continue to be developed, including the project to reforest the Doñana National Park through the "100 Companies for Forests" initiative of WWF Spain, as well as the annual protection of an endangered species and its habitat.

With regard to fostering environmental responsibility in society, the third corporate volunteering day "Everyone for the Environment" was held during the year. Degraded areas were reforested, again demonstrating the commitment and involvement of employees in this area.

E. Acquisition and Disposal of TREASURY STOCK

MAPFRE S.A. shares are bought and sold in accordance with the regulations in force, the relevant agreements adopted at the Annual General Meeting, and the MAPFRE Group Treasury Stock Policy on how to handle transactions which involve the Company's own shares.

In 2019, a total of 7,897,336 treasury stocks were purchased in the market and 1,839,387 shares were delivered to executives of subsidiaries as part of their variable remuneration, representing an increase of 6,057,949 treasury stocks, equivalent to 0.1967 percent of capital and amounting to 15,585,821.85 euros. In the previous fiscal year, 2,079,216 treasury stocks were sold, representing 0.0675 percent of capital and amounting to 4,106,350.17 euros.

At the close of the fiscal year, the Company owned 30,489,839 treasury shares (24,431,890 in 2018), which represented 0.9901 percent of capital (0.7934 percent in 2018) at an average of 2.09 euros per share.

The total face value of the shares acquired was 3,048,984 euros (2,443,189 euros in 2018).

The English version is a translation of the origination purposes only. In case of discrepancy, the Spanish version shall pro

Código seguro de verificación (CSV): xlvfjCSHJswnKZUFv5fe	COPIA ELECTRONICA
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F. HUMAN RESOURCES

The following tables show the average and year-end headcount during the last two years, by category and gender.

Average number of employees

ITEM	2019		2018
	Men	Women	Men	Women
Board Directors and C-Suite	13	র্ব	12	থ
Senior Management	ਰੇਖੋ	52	વેટ	દેર
Technicians	145	142	144	146
Associates	JE	52	16	58
TOTAL AVERAGE NUMBER OF EMPLOYEES	268	250	267	259

Number of employees at year-end

III M Men	2019		2018
		Women	Men	Women
Board Directors and C-Suite	13	র্ব	14	2
Senior Management	97	ਟ ਤੋ	વેરે	53
Technicians	143	147	145	153
Associates	16	48	16	58
TOTAL NUMBER OF EMPLOYEES	269	252	270	266

The following table shows the average number of employees in the Group with a degree of disability equal to or higher than 33 percent, indicating the categories to which they belong.

ITEM	2019	2018
Senior Management	2	2
Advisors	3	4
Associates	4	4
TOTAL	9	10

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall preval.

MAPFRE's objectives for its workforce include the professional development of its employees and enhancing their employability and well-being by developing their abilities and skills. All of this is pursued in an atmosphere of commitment and mutual respect that is free of insults, intimidation, harassment or discrimination, in a workplace that guarantees job security and stability.

MAPFRE applies a Code of Ethics and Conduct that is inspired by its Institutional and Business Principles, and which is conceived to reflect corporate values and the basic principles that should guide the conduct of the Company and its staff.

The Respect for People Policy guarantees a working environment in which any harassment or violent or offensive behavior threatening the rights and dignity of others is not accepted. The Group expressly opposes, and does not tolerate, any harassment in the workplace, regardless of who the victim or perpetrator is. This commitment must be complied with in all relationships between employees, and in those relationships between employees and providers, customers, collaborators and other stakeholders, and it also extends to all the organizations with which MAPFRE works.

In implementing its Diversity and Equal Opportunities Policy, MAPFRE has undertaken a series of public pledges concerning gender diversity and functional diversity.

Through its Promotion, Selection and Mobility Policy, MAPFRE is committed to offering its employees new opportunities for professional development through development plans and programs, training schedules and mobility between areas and countries, in order to increase their employability, job satisfaction and dedication to the Company. The profiles needed to implement the business strategy and talent in the organization are identified, and individual development plans drawn for each employee, thereby ensuring suitable management replacement and succession plans are in place and strategic needs covered.

MAPFRE has defined a global selection procedure that guarantees objectivity, maximum rigor and non-discrimination in all selection processes. Furthermore, the tests used during selection are standardized worldwide with a view to finding the candidate with the most appropriate profile for each job position. A total of 41 selection processes were conducted in 2019.

In 2019, the Group invested 872,000 euros in staff training (1,014,000 euros in 2018).

The English version is a translation of the original in Spanish for information purposes only. In ease of discrepans and prevail

The Compensation Policy is intended to set appropriate remuneration levels for each function and job position and performance by professionals, and to serve as a source of motivation and satisfaction for staff, thus encouraging them to reach their objectives and deliver on MAPFRE's strategy. The policy guarantees equality and external competitiveness in each market and forms part of the in-house development of employees.

The objective of the Policy on Health, Well-being and Prevention of Occupational Risks is to protect and promote a safe and healthy workplace and improve the health of our employees and their families, both in and outside the workplace.

G. EXTERNAL AUDIT

Fees charged by the external auditor are shown below. It is deemed that these fees do not compromise the independence of the auditors.

11 21 2	AMOUNTS
	2019	2018
Audit services	ਕਰਤੋ	465
Other verification services	173	260
Tax services	40 40	Md Valle
Other services	-	HEMA
Total services of main auditor	રેકેસ્ટ	725

Thousands of euros

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H. GOVERNING BODIES

At the Annual General Meeting held on March 8, 2019, Mr. José Manuel Inchausti Pérez, Mr. Georg Daschner, Mr. Antonio Gómez Ciria, Mr. Luis Hernando de Larramendi Martínez, Mr. Antonio Miguel Romero de Olano and Mr. Alfonso Rebuelta Badías were re-elected.as directors.

On August 18, 2019, Mr. Georg Daschner ceased to perform his functions as a member of the Board of Directors, in compliance with the provisions of the Regulations of the Board of Directors.

At the Board of Directors meeting held on September 26, 2019, Ms. Rosa María García García was appointed as a director via the co-optation procedure, replacing Mr. Georg Daschner.

During the meeting of the Board of Directors on July 25, 2019, Mr. José Antonio Colomer Guiu was appointed Chairman of the Risk Committee and as a member of the Steering Committee, Ms. Ana Isabel Fernández Álvarez as Chairwoman of the Audit and Compliance Committee, replacing Mr. José Antonio Colomer Guiu who continues as a member of said committee, and Mr. Antonio Gómez Ciria as a member of the Risk Committee, all effective as and from August 18, 2019,.

Throughout the year 2020, the mandates of Mr. José Antonio Colomer Guiu, Ms. María Leticia de Freitas Costa and Ms. Rosa María García, who were appointed by the co-optation procedure on the date indicated above, will expire. The Appointments and Remuneration Committee has proposed their re-election as directors.

Likewise, during the year 2020, the term of Mr. Ignacio Baeza Gómez, whose reelection is being proposed to the Annual General Meeting, will expire. This proposal has the backing of the Appointments and Remuneration Committee.

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall provins

I. AVERAGE PROVIDER PAYMENT PERIOD

Details of payments made to providers in the last two years are shown below.

ITEM	2019	2018
	Days	Days
Average provider payment period	20	20
Ratio of paid operations	20	20
Ratio of operations pending payment	400 440	44.00
	Amounts	Amounts
Payments made	92,892	100,939
Payments pending	2,933	3,328
Total payments for the year	98,825	104,267

Thousands of euros

J. RESEARCH, DEVELOPMENT AND INNOVATION

MAPFRE has a long history of being an innovative company. Innovation is one of its main levers in driving organic growth and extending its strategic horizon, constantly generating differential value propositions for customers, from a cross-cutting and endto-end vision that allows the Company to respond to the challenges of the business.

In 2018, the MAPFRE innovation model was developed around the proven internal strategic capabilities and digitization of models and solutions for customers, but also organizing an open relationship model that connects external agents and the innovation ecosystem (technology-based startups and other market players who are able to offer disruptive solutions at some link in the insurance value chain insurtechs). This model is called MAPFRE Open Innovation.

During 2019, firm steps were taken to accelerate transformation in MAPFRE and strengthen its leadership position, adapting faster and moving toward new business models and innovative solutions that arise from the digital and technological changes taking place today in order to offer the best solutions and services to customers.

Significant actions taken during the fiscal year include:

The launch of two insur_space calls, attracting bids from various startups for the two programs: Acceleration and Adoption
· MAPFRE's participation as an anchor investor in the venture capital fund "Alma Mundi Insurtech Fund, FCRE", which exclusively focuses on the insurtech space and has acquired stakes in seven startups in the sector

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

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· Consolidation of #innova, MAPFRE's intrapreneurship program.

In addition, the change needed to adapt the organization to the new digital requirements is being managed through the Digital Challenge initiative, providing the flexible and agile work environment and tools that foster collaborative work and knowledge-sharing. In addition, new behaviors (collaborate, innovate and be agile) are being promoted, and digital and strategic profiles and new forms of leadership are being developed.

Moreover, to evaluate the quality perceived by customers, the MAPFRE Quality Observatory applies a global customer experience measurement model, through customer surveys in all countries where the Group operates, covering all insurance lines and customer support services on a twice-yearly basis. This is done by analyzing the Net Promoter Score (NPS®) to evaluate customer satisfaction and critical customer touchpoints, and recommendations are drawn up regarding the main areas that could be improved.

In 2019, the eighth and ninth NPS measurement waves were carried out, involving a representative sample of MAPFRE's portfolios. These waves, with over 140,000 respondents, covered 81.9 percent of the total private Non-Life premiums of the Group.

In addition, once a year, the Observatory measures the customer experience scores of MAPFRE's major competitors in each country/line of business. Approximately 120 companies are analyzed around the world. The results of this work show that in 2019, the Company was able to reach the objective set of exceeding 71 percent of the premium volume measured in which the NPS of MAPFRE customers is higher than the average NPS of the competitors analyzed.

K. ENVIRONMENTAL, SOCIAL AND GOVERNANCE FACTORS AND RISKS

The concept of sustainability is founded on three fundamental pillars: economic, social and environmental development. For this reason, managing risks and business opportunities associated with environmental, social and governance (ESG) issues plays a key role in sustainable development.

Proper monitoring of these aspects provides the organization with additional information about potential risks as well as a clearer insight into social movements and transformations and the expectations of its stakeholders. In this context, MAPFRE's business model and strategy are an example of how the Company tackles global challenges regarding sustainability; how it manages ESG risks; and how it innovates in developing insurance products and solutions for the benefit of its customers and society.

The English version is a translation of the original in Spanish for information purposes only. In ease of discrepancy, the Spanish version shall preval.

The management of ESG risks helps in decision-making on important issues such as underwriting, investment, product and service innovation, sustainability, the environment and reputation management - the latter being essential to gaining the trust of our stakeholders. Consequently, ESG risks are naturally incorporated into the management and control processes implemented by the Group.

Climate change is part of the MAPFRE sustainability strategy. As a global insurance company, MAPFRE has jointly pledged to contribute to defining a standard of technical and financial action for the entire sector that will help the insurance industry manage the risks and opportunities of transitioning to a low-carbon economy, and reduce the impact of climate change for the whole of society. The increasing frequency and severity of natural disasters and MAPFRE's presence in countries with a high exposure to this risk can impact the Group's results. To forecast these events and minimize their economic impact, MAPFRE companies are working on a variety of aspects: i) efficient control of exposure to catastrophic risks; ii) ensuring proper loss adjustment; and iii) coordinating a sufficient response and service to affected customers.

To guarantee effective risk management, the Group has developed a series of policies.

The Risk Management Policy provides the framework for managing risks and, in turn, for developing specific risk policies.

The Compliance Function Policy has the main objective of minimizing the likelihood of legal and non-compliance risk by establishing effective prevention and control mechanisms.

L. NON-FINANCIAL INFORMATION

The information concerning the Company's non-financial information statement is included in the Integrated Report, which is part of the Consolidated Management Report of the MAPFRE Group - the parent of which is MAPFRE S.A. - and which will be filed, together with the Consolidated Annual Accounts, in the Madrid Companies' Registry.

M. SIGNIFICANT EVENTS FOR THE COMPANY AFTER THE YEAR-END CLOSE

There were no significant events subsequent to the year-end close.

N. OUTLOOK

The global economy in general remains stable, albeit with rather modest performance. By 2020, an average growth of 3 percent is expected at the global level, which may accelerate in the following quarters and converge with the average of the second half of the last decade, close to global potential. A recession has been ruled out for the time being, unless unforeseen risks emerge causing an adjustment in what is a systemic economy.

Advanced economies are not expected to contribute significantly to projected growth, as they are facing downturns and falling short of potential growth, posting expansion of 2 percent or less on average over the next biennium. Emerging countries, meanwhile, are set to make more significant contributions, growing steadily by around or above 4.5 percent on average over the coming years thanks to more benign borrowing conditions, better terms of trade for commodity-producing countries, and certain countries like Brazil, Mexico and Turkey emerging from sluggishness, as well as a likely easing of socio-political issues that are triggering uncertainty and disruption in several emerging economies (Andean countries, Hong Kong, etc.).

The cyclical momentum is toward the stabilization of activity at low levels, which has caused many economies to rethink how public policies are designed and implemented. In the United States, GDP growth has settled below 2 percent, mainly underpinned by domestic demand thanks to support from the Federal Reserve (Fed). The Economic and Monetary Union (EMU), for its part, has again recorded a pronounced sluggishness that has forced the lax monetary stance to be extended. In addition, the need to complement this stance with profound fiscal stimuli is being discussed.

China's economy has continued to enjoy the momentum seen last year and, despite high-frequency data indicating some loss of buoyancy, continues to grow steadily (as per official figures).

In emerging markets, although many of the vulnerabilities are softened by the shift in US monetary policy, their reliance on foreign saving makes them very sensitive to external corrections, being able to create and spread their financial shocks to the region through investor expectations. Therefore, we believe that while such markets are set to move into more buoyant phases of the economic cycle, they are also likely to be more fragile.

A recession would be the alternative scenario, which we believe is necessary to highlight, given that it would accelerate geopolitical trends (such as the reversal of globalization and the growing social discontent today) that are once again the sign of the times in this third decade of this century.

The English version is a translation of the original in Spanish for information purposes only. In asse of discrepancy, the Spanish version shall preval

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O. ANNUAL CORPORATE GOVERNANCE REPORT

The Consolidated Management Report includes the Company's Annual Corporate Governance Report, issued pursuant to the provisions of Article 49.4 of the Spanish Code of Commerce. The report will also be available from the date of publication of these accounts on the corporate website (www.mapfre.com) and on the CNMV website (www.cnmv.es).

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail

COPIA ELECTRÓNICA Código seguro de verificación (CSV): xIvfjCSHJswnKZUFv5fe Esta es una copia auténtica imprimible de un documento electrónico archivado por la CNMV, según el artículo 27.3 c) de la Ley 39/2015, de 2 de octubre. Su autenticidad puede ser contrastada a través de la siguiente dirección: https://sede.cnmv.libreAcceso/CSV.aspx

The Individual Annual Accounts for MAPFRE S.A., on the preceding pages 1 to xxx herein, and the Individual Management Report on the preceding pages xxx to xxx herein, corresponding to financial year 2019, endorsed by the Secretary of the Board, have been drafted by the Board of Directors at its meeting held on February 11, 2020. The Board Members declare that, as far as they are aware, the aforementioned accounts have been prepared in accordance with the applicable accounting principles and offer a true and fair view of the equity, financial situation, and results of the Company and the companies comprising the consolidation as a whole. Likewise the Management Report includes a true and fair analysis of the development of the results and of the Company, and broadly informs, along with the Annual Report, of the risks and uncertainties they faces.

Mr. Antonio Gómez Ciria Member
Mr. Luis Hernando de Larramendi Martínez Member
Mr. Francisco J. Marco Orenes Member
Mr. Fernando Mata Verdejo Member
Mr. Antonio Miguel-Romero de Olano Member
Ms. Pilar Perales Viscasillas Member
Mr. Alfonso Rebuelta Badías Member
Mr. Ángel Luis Dávila Bermejo Secretary and Non-Member

The English version is a translation of the original or information purposes only. In case of discrepancy, the Spanish version shall previol.

Código seguro de verificación (CSV): xIvfjCSHJswnKZUFv5fe	COPIA ELECTRÓNICA
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MAPFRE, S.A. and Subsidiaries

Consolidated Annual Accounts

31 December 2019

Consolidated Directors' Report 2019

(With Independent Auditor's Report Thereon)

(Free translation from the originals in Spanish. In the event of discrepancy, the Spanish-language versions prevail.)

ను రాజా స్ట్రాల్యాలు

KPMG Auditores, S.L. Paseo de la Castellana, 259 C 28046 Madrid

Independent Auditor's Report on the Consolidated Annual Accounts

(Translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails.)

To the Shareholders of MAPFRE, S.A.

Report on the Consolidated Annual Accounts

Opinion

We have audited the consolidated annual accounts of MAPFRE, S.A. ("the Parent") and subsidiaries (the "Group"), which comprise the balance sheet at December 31, 2019, the income statement, the statement of comprehensive income, the statement of changes in equity, the statement of cash flows and the notes to the financial statements, all consolidated, for the year then ended.

In our opinion, the accompanying consolidated annual accounts give a true and fair view, in all material respects, of the equity and financial position of the Group as at 31 December 2019 and of 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 are independent of the Group in accordance with the ethical requirements, including those regarding independence, that are relevant to our audit of the consolidated annual accounts in Spain pursuant to the legislation regulating the audit of accounts. We have not provided any non-audit services, nor have any situations or circumstances arisen which, under the aforementioned regulations, have affected the required independence such that this has been compromised.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

© 2020 KPMG Auditores S.L., a limited liability Spanish independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved. KPMG Confidential

led at the Madrid Mercantile Registr in volumer 1.961, Sheet. 90,
ection 8, pege number M -188.007, entry nu
ex identification number (N.I.F). B-78510153

Key Audit Matters

Key audit matters are those matters that, in our professional judgement, were of most significance in the 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.

Key audit matter How the issue was addressed in our audit The Group calculates mathematical provisions for Our audit approach included testing the design and implementation of key controls established by the commitments with its policyholders, including some very long-term. Estimating mathematical provisions Group in the process of estimating mathematical requires the use of actuarial calculations and provisions, including controls on the definition of key methods that employ key assumptions involving a assumptions and on the completeness and accuracy high degree of judgement and uncertainty, among of the data bases used when estimating these which are the future evolution of mortality, provisions. morbidity, administration costs, interest rates, etc. Our substantive procedures in relation to the In addition, the IFRS-EU require that the adequacy of mathematical provisions, which were carried out in insurance contract liabilities be tested, including life collaboration with our actuarial specialists and for insurance liabilities, in order to determine whether representative samples of contracts selected based sufficient provision has been made on the basis of on our risk assessment and their significance, consisted primarily of the following: projected future cash flows associated with contracts in force, taking into account the most up- Testing the completeness and accuracy of the to-date assumptions available. These tests also data bases used in the actuarial calculations. require the use of actuarial methods, where the Based on our knowledge and experience of the assumptions used have a significant impact. sector, we assessed the reasonableness of the The use of inadequate assumptions in actuarial actuarial models and the assumptions used in methods can have a significant impact on the calculating the mathematical provisions, consolidated annual accounts, therefore it has been comparing them to best actuarial practices, considered a key audit matter. regulatory requirements and market trends. Additionally, we perform recalculations and reasonability analysis over the amounts accounted for, considering the economic and technical conditions of the insurance contracts and those established in prevailing legislation. We also assessed the adequacy of the information disclosed in the consolidated annual accounts regarding the mathematical provisions, considering the requirements of IFRS-EU.	Valuation of mathematical provisions (24,900.09 million of Euros) See notes 5. 15 and 6 13 of the notes to the consollidated annual accounts

(Translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails.)

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Valuation of the provision for non-life insurance claims (11,331.46 million of Euros) test 5 and 16 is so the notest to the reconsolidated annuallaccoun

How the issue was addressed in our audit Key audit matter Our audit procedures included testing the design and The Group recognises the provision for non-life insurance claims to cover the estimated cost of implementation of key controls established by the events occurring up to the closing date. Estimating Group in the process of estimating the claims this provision is complex and requires actuarial provision, including controls on the definition of key methods and calculations based on judgement and assumptions, as well as on the completeness and significant assumptions, particularly for those lines of accuracy of the data bases used when estimating business where the claim settlement period can be these provisions. very long, such as in motor, liability, fire, aviation and Our substantive procedures in relation to the claims transport. provision, which were carried out in collaboration When valuing the claims provision, estimates are with our actuarial specialists and for a representative used on a case-by-case basis, as well as actuarial sample of lines of business selected based on our projection methods based on past information and risk assessment and their significance, consisted assumptions on their future evolution. These primarily of the following: estimates include assumptions related to the amount of the expected settlement and claim Testing the completeness and accuracy of the payment patterns, and due to their nature, there is a data bases used in the actuarial calculations. significant degree of uncertainty, and a change in Based on our knowledge and experience of the assumptions could significantly impact the sector, we assessed the reasonableness of the consolidated annual accounts, therefore it has been actuarial models and the assumptions used in considered a key audit matter. calculating the claims provision, comparing them to best actuarial practices, regulatory requirements, market assumptions and historical trends. We estimated the provision for claims and, based on our experience, determined a range for assessing its reasonableness. We also assessed the adequacy of the information disclosed in the annual accounts on the provisions for non-life insurance claims, considering the requirements of IFRS-EU.

Valuation of goodwill and portfolio acquisition costs (2,610.49 million of Euros)

See notes 5.1 and 6.1 of the notes to the consolidated annual accounts

Key audit matter	How the issue was addressed in our audit
The Group has recognised significant goodwill and portfolio acquisition costs from the acquisition of entities or businesses. Valuing these assets requires determination of the cash-generating units (CGUs), the calculation of carrying amount of each CGU, the estimation of the recoverable amount and the identification of facts that may determine the existence of impairment indicators in subsequent closings. Determining the recoverable amount of each CGU includes among other issues, financial projections that consider	Our audit procedures included testing the design and implementation of key controls established by the Group in the process of identifying CGUs, evaluating impairment indicators, having financial projections approved by the Management and defining the assumptions and calculation methods used to estimate the recoverable amount of CGUs. Based on our knowledge and experience, we assessed the reasonableness of the methods used by the Group to estimate the recoverable amounts of CGUs, considering IFRS-EU and best market practices.
assumptions about macroeconomic developments, internal circumstances of the entity and competitors, discount rates or future business performance. Given the complexity of the estimates and the use of assumptions that, in general, include uncertainty and judgment, we consider that the valuation of goodwill and portfolio acquisition costs has a significant inherent risk associated and, therefore, has been considered as a key audit matter. The Group performs on an annual basis, or when	Our substantive procedures, which were performed for a sample of CGUs, including the most relevant ones, have consisted, basically, in the following: Evaluating the existence of goodwill and portfolio acquisition cost impairment indicators considering external and internal factors such as macroeconomic indicators, sector expectations, the financial performance of CGUs and management's expectations.
indications of impairment are identified, an evaluation to determine if there is impairment in the goodwill and registered portfolio acquisition costs. In this sense, our assessment has focused mainly on goodwill and portfolio acquisition costs of the most	In collaboration with our valuation specialists, analysing the discount and growth rates used by the Group to estimate the recoverable amount of CGUs.
significance and those whose estimated recoverable value is closer to the carrying amount of the net assets.	Assessing the reasonableness of the financial projections prepared by management, comparing them to the historical financial intormation of the CGUs, to business plans approved by the Group and to market expectations in the sectors in which they operate.
	Performing a sensitivity analysis of the key assumptions and financial projections used to estimate the recoverable amount of CGUs.
	We also assessed the adequacy of the information disclosed in the annual accounts on goodwill and portfolio acquisition costs, considering the requirements of IFRS-EU.

Valuation of financial instruments not quoted on active markets and recognized at fair value (8,124.92 million of Euros) See notes 5.5 and 6.4 of the notes to the consollidated annual accounts

Key audit matter	How the issue was addressed in our audit
The classification of the financial instruments in the	Our audit approach included assessing the key
different existing portfolios in the applicable financial	controls linked to the processes of valuing financial
standards determines the criteria to be applied in	instrument portfolios and performing substantive
their subsequent valuation.	testing thereon.
The majority of the MAPFRE Group's financial	In collaboration with our specialists in financial
instruments are valued using market prices in active	instruments, we selected representative samples of
markets. Nonetheless, where there is no quoted	the population of the Group's financial instruments,
price in an active market, the fair value of financial	for which its adequate valuation was evaluated,
instruments is determined using valuation	through the performance of various substantive
techniques that consider factors such as non-	procedures, which included the recalculation of fair
observable market inputs or complex valuation	value and the evaluation of the reasonableness of
models that require a high degree of judgement.	the market data used in the valuation models.
Changes in the assumptions considered, market	Additionally, we assessed whether the information
events or new regulations can also have a significant	disclosed in the consolidated annual accounts on
impact on valuation.	financial instruments adequately reflects the Group's
We have considered that there is a significant inherent risk associated with the valuation of financial instruments accounted for at fair value and that are classified hierarchically for valuation purposes by the Group as financial instruments at level 3 (use of some significant input information that is not based on observable market data) and level 2 (significant input information based on directly or indirectly observable market data), in both cases, by the use of complex valuation models, which has been considered a key audit matter .	exposure to the risk of valuing financial instruments, and whether it complies with the disclosure requirements of IFRS-EU.

Other Information. Consolidated Directors' Report

Other information solely comprises the 2019 consolidated directors' report, the preparation of which is the responsibility of the Parent's Directors and which does not form an integral part of the consolidated annual accounts.

Our audit opinion on the consolidated annual accounts does not encompass the consolidated Directors' report. Our responsibility regarding the information contained in the consolidated Directors' report is defined in the legislation regulating the audit of accounts, which establishes two different levels for this information:

a) A specific level applicable to non-financial consolidated information, as well as certain information included in the Annual Corporate Governance Report (ACGR), as defined in article 35.2. b) of the Audit Law 22/2015, which solely requires that we verify whether said information has been included in the Consolidated Director's report or, where applicable, that the director's report includes the corresponding reference to the separate non-financial report as stipulated by prevailing regulations and if not, report on this matter.

b) A general level applicable to the rest of the information included in the consolidated directors' report, which consists of assessing and reporting on the consistency of this information with the consolidated annual accounts, based on knowledge of the Group obtained during the audit of the aforementioned accounts and without including any information other than that obtained as evidence during the audit. Also, assessing and reporting on whether the content and presentation of this part of the consolidated directors' report are in accordance with applicable legislation. If, based on the work we have performed, we conclude that there are material misstatements, we are required to report them.

Based on the work carried out, as described above, we have verified that the specific non-financial information mentioned in a) above has been provided in a separate report – the "Integrated Report MAPFRE S.A. 2019" - to which the consolidated directors' report makes reference to, that the information of the ACGR, mentioned in this section is included in the directors' report, and that the rest of the information contained in the consolidated directors' report is consistent with that disclosed in the consolidated annual accounts for 2019 and the content and presentation of the report are in accordance with applicable legislation.

Directors' and Audit and Compliance Committee's Responsibility for the Consolidated Annual Accounts

The Parent's directors are responsible for the preparation of the accompanying consolidated annual accounts in such a way that they give a true and fair view of the consolidated financial position and consolidated 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 they determine 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'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 directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so.

The Parent's audit and compliance committee is responsible for overseeing the 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 prevailing legislation regulating the audit of accounts 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 economic decisions of users taken on the basis of these consolidated annual accounts.

As part of an audit in accordance with prevailing legislation regulating the audit of accounts in Spain, we exercise professional judgement 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's directors.
--- Conclude on the appropriateness of the Parent'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 a true and fair view.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated annual accounts. We are responsible for the direction, supervision and performance of the Group audit. We remain solely responsible for our audit opinion.

We communicate with the audit and compliance committee of the Parent 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's audit and compliance committee with a statement that we have complied with the applicable ethical requirements, including those regarding independence, and to communicate with them all matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated to the audit and compliance committee of the Parent, we determine those that were of most significance in the audit of the consolidated annual accounts of the current period and which 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

Additional Report to the Audit and Compliance Committee of the Parent

The opinion expressed in this report is consistent with our additional report to the Parent's audit and compliance committee dated 12 February 2020.

Contract Period

We were appointed as auditor of the Group by the shareholders at the ordinary general meeting on 9 March 2018 for a period of 3 years, from the year ended 31 December 2018.

Previously, we had been appointed as auditors by the shareholders of MAPFRE, S.A. for a period of 3 years, and have been auditing uninterrupted the Group's consolidated Annual Accounts since the year ended 31 December 2015.

KPMG Auditores, S.L. (S0702)

(Signed on original in Spanish)

Jorge Segovia Delgado

R.O.A.C: 21903

12 February 2020

CONSOLIDATED ANNUAL ACCOUNTS

and

CONSOLIDATED MANAGEMENT REPORT

FISCAL YEAR 2019

MAPFRE S.A.

CONSOLIDATED ANNUAL ACCOUNTS

2019

MAPFRE S.A.

CONSOLIDATED ANNUAL ACCOUNTS

2019

A) Consolidated balance sheet
B) Consolidated statement of income and comprehensive income
C) Consolidated statement of changes in equity
D) Consolidated cash flow statement
E) Financial information by segment
F) Complementary financial information by product and geographical area
G) Notes to the consolidated financial statements

MAPFRE S.A.

A) CONSOLIDATED BALANCE SHEET AS ON DECEMBER 31, 2019 AND 2018

ASSETS	Notes	2019	2018
A) INTANGIBLE ASSETS	6.1	3,300.10	3,072.36
1. Goodwill	6.1	1,773.21	1,689.03
II. Other intangible assets	6.1	1,526.89	1,383.33
B) PROPERTY, PLANT AND EQUIPMENT	6.2	1,377.14	1,112.34
1. Real estate for own use	6.2	1,111.63	852.66
II. Other property, plant and equipment	6.2	265.51	259.68
INVESTMENTS ਹੈ		47,363.30	43,976.95
1. Real estate investments	6.2	1,323.35	1,243.60
II. Financial investments
Held-to-maturity portfolio 1.	6.4	1,973.39	1,951.47
Available-for-sale portfolio 2.	6.4	37,085.21	33,753.73
Trading portfolio 3.	6.4	5,937.27	5,540.77
III. Investments recorded by applying the equity method		207.83	193.68
IV. Deposits established for accepted reinsurance		543.72	806.11
V. Other investments		292.53	487.59
D) INVESTMENTS ON BEHALF OF LIFE INSURANCE POLICYHOLDERS BEARING THE INVESTMENT RISK	6.5	2,510.24	2,242.49
E) INVENTORIES		60.48	60.87
F) PARTICIPATION OF REINSURANCE IN TECHNICAL PROVISIONS	6.13	6,386.05	5,883.18
G) DEFERRED TAX ASSETS	6.20	306.97	333.58
H) RECEIVABLES	ર્જિત્ત	6,069.39	5,761.20
I. Receivables on directinsurance and co-insurance operations	6.6	3,945.09	3,644.21
II. Receivables on reinsurance operations	6.6	934.33	903.08
III. Tax receivables
1. Tax on profits receivable	6.20	245.53	192.05 144.65
Other tax receivables 2.	6.6	163.67 780.77	877.21
IV. Corporate and other receivables V. Shareholders, called capital
I) CASH		2,537.50	2,201.41
J) ACCRUAL ADJUSTMENTS	5.11	2,217.33	2,168.79
K) OTHER ASSETS		117.18	136.17
L) NON-CURRENT ASSETS HELD FOR SALE AND FROM DISCONTINUED OPERATIONS	6.9	264.24	341.48
TOTAL ASSETS		72,509.92	67,290.82

Figures in millions of euros

The English version is a translation of the original in information purposes only. In case of discrepancy, the Spanish version shall prevail.

A) CONSOLIDATED BALANCE SHEET AS ON DECEMBER 31, 2019 AND 2018

EQUITY AND LIABILITIES	Notes	2019	2018
A) EQUITY	6.10	10,106.02	9,197.58
l. Paid-up capital	6.10	307.95	307.95
II. Share premium		1,506.74	1,506.74
III. Reserves		6,377.57	6,323.63
IV. Interim dividend	4.2	(184.77)	(184.83)
V. Treasury Stock	6.10	(63.84)	(48.25)
VI. Result for the period attributable to controlling company	4.1	609.24	528.86
VII. Other equity instruments	6.21		4.49
VIII. Valuation change adjustments	6.10	1,003.68	293.12
IX. Currency conversion differences	6.22	(702.21)	(737.90)
Equity attributable to the controlling company's shareholders		8,854.36	7,993.81
Non-controlling interests		1,251.66	1,203.77
B) SUBORDINATED LIABILITIES	6.11	1,121.07	1,120.54
C) TECHNICAL PROVISIONS	6.13	48,521.39	46,481.15
I. Provisions for unearned premiums and unexpired risks	6.13	8,243.33	7,951.40
II. Provisions for life insurance	6.13	26,584.08	24,838.47
III. Provision for outstanding claims	6.13	12,624.05	12,714.15
IV. Other technical provisions	6.13	1,069.93	977.13
D) TECHNICAL PROVISIONS FOR LIFE INSURANCE WHERE POLICYHOLDERS BEAR THE INVESTMENT RISK	6.13	2,510.24	2,242.49
E) PROVISIONS FOR RISKS AND EXPENSES	6.14	709.28	641.49
F) DEPOSITS RECEIVED ON CEDED AND RETROCEDED REINSURANCE	૯.૩૬	68.13	79.50
G) DEFERRED TAX LIABILITIES	6.20	703.11	499.32
H) DEBT	6.16	8,318.94	6,596.44
ا. Issue of debentures and other negotiable securities	6.12	1,004.82	1,004.05
II. Due to credit institutions	6.12	847.81	545.69
III. Other financial liabilities	6.12	1,913.08	1,262.80
IV. Due on direct insurance and co-insurance operations		928.06	1,094.78
V. Due on reinsurance operations	6.16	1,541.08	852.64
VI. Tax liabilities
1. Tax on profits to be paid	6.20	101.19	130.14
2. Other tax liabilities	6.16	358.18	320.57
VII. Other debts	6.16	1,624.72	1,385.77
I) ACCRUAL ADJUSTMENTS	5.11	315.90	238.35
J) LIABILITIES LINKED TO NON-CURRENT ASSETS HELD FOR SALE AND FROM DISCONTINUED OPERATIONS	6.9	135.84	193.96
TOTAL EQUITY AND LIABILITIES		72,509.92	67,290.82

Figures in millions of euros

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

Código seguro de verificación (CSV): xIvfjCSHJswnKZUFv5fe	COPIA ELECTRÓNICA
Esta es una copia auténtica imprimible de un doumento electrónico por la CNMV, según el artículo 27.3 c) de la Ley 39/2015, de 2 de octubre. Su autenticidad puede ser contrastada a través de la siquiente dirección: https://sede.cnmv/l.ibreAccess/CSV.aspx

b) consolidated statement of Income and comprehensive INCOME FOR YEARS ENDING DECEMBER 31, 2019 AND 2018

B.1) CONSOLIDATED INCOME STATEMENT

ITEM	Notes	2019	2018
I. REVENUE FROM INSURANCE BUSINESS
1. Premiums earned, net
a) Written premiums, direct insurance	7.A.2	19,538.76	19,102.23
b) Premiums from accepted reinsurance	7.A.2	3,505.16	3,434.87
c) Premiums from ceded reinsurance d) Variations in provisions for unearned premiums and unexpired risks	6.19	(4,137.35)	(3,374.34)
Direct insurance	6.13	(402.49)	35.43
Accepted reinsurance	6.13	281.94	172.54
Ceded reinsurance	6.19	386.90	(158.71)
2. Share in profits from equity-accounted companies		8.03	12.08
3. Revenue from investments	6.17	2,763.20	2.176.09
a) From operations b) From equity	6.17	231.12	214.03
4. Gains on investments on behalf of life insurance policyholders bearing the	6.5	233.04	88.09
5. Other technical revenue		68.57	61.01
6. Other non-technical revenue		60.45	69.53
7. Positive foreign exchange differences	6.22 6.7	1,589.20 28.25	959.39 41.11
8. Reversal of the asset impairment provision TOTAL REVENUE FROM INSURANCE BUSINESS		24,154.78	22,833.35
II. EXPENSES FROM INSURANCE BUSINESS
1. Incurred claims for the year, net
a) Claims paid and variation in provision for claims, net
Direct insurance	5.15 5.15	(12,584.12) (2,721.53)	(13,802.19) (2,465.61)
Accepted reinsurance Ceded reinsurance	6.19	2,475.59	3,677.06
b) Claims-related expenses	6.18	(814.51)	(815.84)
2. Variation in other technical provisions, net	5.15	(1,009.09)	(564.75)
3. Profit sharing and returned premiums		(45.88)	(38.70)
4. Net operating expenses			(4,810.80)
a) Acquisition expenses	6.18 6.18	(5,020.14) (723.89)	(745.58)
b) Administration expenses c) Commissions and participation in reinsurance	6.19	635.79	567.66
5. Share in losses from equity-accounted companies			0.00
6. Investment expenses
a) From operations	6.17	(711.41)	(710.82) (92.91)
b) From equity and financial accounts 7. Losses on investments on behalf of life insurance policyholders bearing the	6.17 6.5	(81.16) (54.91)	(146.16)
8. Other technical expenses	6.18	(155.11)	(139.13)
9. Other non-technical expenses	6.18	(165.24)	(149.69)
10. Negative foreign exchange differences	6.22	(1,589.46)	(946.70)
11. Allowance to the asset impairment provision	6.7	(55.94)	(229.26) (21,413.42)
TOTAL EXPENSES FROM INSURANCE BUSINESS RESULT FROM THE INSURANCE BUSINESS		(22,621.01) 1,533.77	1,419.93
III. OTHER ACTIVITIES
1. Operating revenue		385.33	321.00
2. Operating expenses	6.18	(515.72)	(401.62)
3. Net financial income	6.17	47.65	82.58
a) Financial income b) Financial expenses	6.17	(88.19)	(85.29)
4. Results from non-controlling interests
a) Share in profits from equity-accounted companies		4.45	2.29
b) Share in losses from equity-accounted companies		(0.02)	(0.03)
5. Reversal of asset impairment provision	6.7 6.7	9.04 (75.38)	25.41 (15.09)
6. Allowance to the asset impairment provision 7. Result from the disposal of non-current assets classified as held for sale,
not included in discontinued operations
RESULT FROM OTHER ACTIVITIES		(232.84)	(70.75)
IV. RESULT ON RESTATEMENT OF FINANCIAL ACCOUNTS	3.3	(21.64)	(18.72) 1,330.46
V. RESULT BEFORE TAX FROM ONGOING OPERATIONS VI. TAX ON PROFIT FROM ONGOING OPERATIONS	6.20	1,279.29 (324.03)	(452.94)
VII. RESULT AFTER TAX FROM ONGOING OPERATIONS		955.26	877.52
VIII. RESULT AFTER TAX FROM DISCONTINUED OPERATIONS
IX. RESULT FOR THE PERIOD		955.26	877.52
1. Attributable to non-controlling interests		346.02	348.66 528.86
2. Attributable to the controlling company	4.7	609.24
Figures in millions of euros
Earnings per share (Euros)	4.1	0.20	0.17
Basic niluted	4.1	0.20	0.17

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

Código seguro de verificación (CSV): xlvfjCSHJswnKZUFv5fe	COPIA ELECTRÓNICA
Esta es una copia auténtica imprimible de un doumento en la CNMV, según el artículo 27.3 c) de la Ley 39/2015, de 2 de octubre. Su autenticidad puede ser contrastada a través de la siquiente dirección: https://sede.mmv/l.ibreAccess/CSV.aspx

ତି

8.21 consolidated statement of comprehensive income

TIEM	NOTES	GROSS AMOUNT		TAX ON PROFITS		ATTRIBUTABLE TO NON- CONTROLLING INTERESTS		ATTRIBUTABLE TO CONTROLLING COMPANY
		2019	2018	2019	2018	2019	2018	2019	2018
A} CONSOLIDATED RESULT FOR THE YEAR		1,279.29	1,330.46	(324.03)	(452.94)	346.02	348.66	609.24	528.86
B} OTHER RECOGNIZED REVENUE (EXPENSES)		1,009.82	(677.52)	(231.93)	122.72	31.64	(124.44)	745.25	(430.36)
1. Financial assets available for sale	6.4	2,079.77	(708.57)	(500.41)	185.97	144.27	(49.81)	1,435.09	(472.79)
a) Valuation gains (losses)		2,519,91	(564.26)	(609.18)	150.17
b) Amounts transferred to the income statement		(440.24)	(144.29)	108.77	35.80
c) Other reclassifications		0.10	(0.02)
2, Currency conversion differences	6.22	29.78	(202.50)	(0.36)	(0.41)	(6.27)	(100.11)	35.69	(102.80)
a) Valuation gains (losses)		28.38	(215.62)	(0.36)	(0.41)
b) Amounts transferred to the income statement		0.35	0.25		. .
c) Other reclassifications		1.05	12.87		-
3. Shadow accounting		(1,094.73)	232.47	268.72	(63.34)	(105.41)	25,28	(719.60)	143.85
a) Valuation gains (losses)	6.10	(1,353.06)	211.95	333.30	(58.21)
b) Amounts transferred to the income statement		258.33	20.52	(64.58)	(5.13)
c) Other reclassifications					.
4. Equity-accounted entities		0.09	(1.64)	0.12	0.50	0.05	0.03	0.16	(1.17)
a) Valuation gains (losses)		(0.01)	(1.33)	0.12	0.50
b) Amounts transferred to the income statement		0.10	0.06		-
c) Other reclassifications			(0.37)		--
5. Other recognized revenue and expenses		(5.09)	2.72	ـــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــ	0.00	0.03	0.17	(5.09)	2.55
TOTAL		2,289.11	652.94	(555.98)	(330.22)	377.66	224.22	1,355.49	98.50

All the items included in the consolidated statement of comprehensive income and expenses may be reclassified to the consolidated income statement in line with EU-IFRS.

The English version is a translation of the original in Spanish for information purposes only. In Case of discrepancy, the Spanish version shall prevail.

colloated statement of changes in equity as on december 31, 2019 and 2018

		EQUITY ATTRIBUTABLE TO CONTROLLING COMPANY
		SHAREHOLDERS' FUNDS RESULT FOR THE
										NON
ITEM	NOTES	SHARE CAPITAL	SHARE PREMIUM	RESERVES	INTERIM DIVIDEND	TREASURY STOCK	YEAR 10 CONTROLLING COMPANY	ATTRIBUTABLE OTHER EQUITY INSTRUMENTS	VALUATION Change ADJUSTMENTS	CURRENCY CONVERSION DIFFERENCES	CONTROLLING INTERESTS	TOTAL EQUITY
opening balance as on January 1, 2018		307.95	1,508.74	6,433.14	(184.77)	(52.36)	700.51	10.08	620.69	(730.70)	1,901.38	10,512.66
1. Changes in accounting policies {Note 2.4}
Correction of errors 2.			-			-
ADJUSTED BALANCE AS ON JANUARY 1, 2018		307.95	1,505.74	6,433.14	(184.77)	(52.36)	700.51	10.08	620.60	(730.70)	1,901.38	10,512.66
[. TOTAL COMPREHENSIVE REVENUE (EXPENSES)			-			-	528.86	-	(327.57)	(102.80)	224.22	322.71
11 operations with THE CONTROLLING COMPANY'S SHAREHOLDERS AND NON-CONTROLLING INTERESTS		ww	-	(455.44)	(184.83)	4.11	-		-		(879.87)	(1,516.03)
1. Capital Increases (decreases)	6.25	-	--		-			-	-		(71.39)	(71.39)
2. Distribution of dividends	4.2 and 6.25	-	-	(261.82)	(184.83)	-					(416.43)	(863.08)
3. Increases (decreases) from business combinations		ve		0.79	-		--		-		7.99	8.78
Other operations with the controlling company's shareholders র্ব and non-controlling interests	6.8 and 6.25	ﺒﻴﻨﻴ	-	(156.34)	-					-	(400.04)	(596.38)
5. Operations with treasury stock and own shares	6.10	uu	--	1.93	--	4.11				-		6.04
hi. Other variations in Equity		--	-	345.93	184.77	-	(700.51)	(5.59)		વેટે સ્વિ	(41.95)	(121.76)
1. Transfers among equity items			-	515.74	184.77	-	(700.51)			-
Other variations 2	3.3 and 6.6	-	-	(169.81)				(5.59)		95.60	(41.95)	(121.76)
CLOSING BALANCE AS ON DECEMBER 31, 2018		307.95	1,506.74	6,323.63	(184.83)	(48.25)	528.85	4.49	293.17	(737.90)	1,203.77	9,197,58

opening balance as on Ianuary 1, 2019		307.95	1,506.74	6,323.63	(184.83)	(48.25)	528.86	4.49	293.12	(737.90)	1, 203.77	9,197,58
1. Changes in accounting policies	2.4			(8.35)				-			(4.73)	(13.09)
Correction of errors 2.				---
ADJUSTED BALANCE AS ON JANUARY 1, 2019		307.95	1,506.74	6,315.27	(184.83)	(48.25)	528.86	4.49	293.12	(737.90)	1,199.04	9,184.49
I. TOTAL COMPREHENSIVE REVENUE (EXPENSES)		ﺴ ﻣ		--		ﻪ	609.24	-	710.56	35.69	377.65	1,733.15
II. OPERATIONS WITH THE CONTROLLING COMPANY'S SHAREHOLDERS AND NON-CONTROLLING INTERESTS		-		(260.82)	(184.77)	(15.59)		-			(332.91)	(794.12)
1. Capital Increases (decreases)		-									2.13	2.13
Distribution of dividends 2.	4.2 and 6.25			(261.64)	(184.77)						(401.26)	(847.67)
Increases (decreases) from business combinations 3.		****	-	-							61.78	61.78
Other operations with the controlling company's shareholders র্ব and non-controlling interests	6.8 and 6.25		ﺐ ﻣ	(0. 12)				++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++			4.44	4.32
5. Operations with treasury stock and own shares	6.10		--	0.91	+4	(15.59)						(14.68)
III. OTHER VARIATIONS IN EQUITY		-	--	323.15	184.83		(528.86)	(4.49)		ﺳ	7.87	(17.50)
1. Transfers among equity items			--	344.03	184.83		(528.86)
2. Other variations	3.3		-	(20.88)				(4.49)		-	7.87	(17.50)
CLOSING BALANCE AS ON DECEMBER 31, 2019		307.95	1,506,74	6,377.57	{ 184.77}	(63.84)	609.24		1,003.68	(702.21)	1,251.66	10,106.02

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

D) CONSOLIDATED CASH FLOW STATEMENT FOR YEARS ENDING DECEMBER 31, 2019 AND 2018

ITEM	NOTES	2019	2018
1. Insurance activity:		642.16	1,304.56
Cash received from insurance activity		25,380.35	24,550.51
Cash payments from insurance activity		(24,738.19)	(23,245.95)
2. Other operating activities:		(247.97)	(343.66)
Cash received from other operating activities		400.02	574.38
Cash payments from other operating activities		(647.99)	(918.04)
3. Receipt (payment) of income tax		(430.84)	(529.32)

NET CASH FLOWS FROM OPERATING ACTIVITIES		(36.65)	431.58
1. Proceeds from investment activities:		23,985.20	20,544.37
Property, plant and equipment		8.34	27.29
Real estate investments		35.51	107.76
Intangible fixed assets		1.21	3.17
Financial instruments		20,038.10	17,395.36
Equity instruments		2,659.82	1,695.10
Controlled companies and other business units		17.40	135.32
Interest collected		1,071.09	1,067.08
Dividends collected		120.87	71.00
Other proceeds related to investment activities		32.86	42.29
2. Payments from investment activities:		(22,918.17)	(19,674.60)
Property, plant and equipment	6.2	(69.49)	(65.69)
Real estate investments	6.2	(12.79)	(10.52)
Intangible fixed assets		(202.13)	(82.52)
Financial Instruments		(19,303.55)	(17,275.56)
Equity instruments		(3,131.24)	(2,214.38)
Controlled companies and other business units	6.8 and 6.24	(175.79)
Other payments related to investment activities		(23.18)	(25.93)
NET CASH FLOWS FROM INVESTMENT ACTIVITIES		1,067.03	869.77
1. Proceeds from financing activities		819.29	1,515.92
Subordinated liabilities			496.95
Proceeds from issuing of equity instruments and capital increases		2.13
Proceeds from sale of treasury stock	6.10	4.24	୧.୦୧
Other proceeds related to financing activities		812.92	1,012.92
2. Payments from financing activities		(1,511.66)	(2,455.46)
Dividends paid to shareholders		(844.06)	(863.09)
Interest paid		(69.79)	(57.34)
Subordinated liabilities
Payments on return of shareholders' contributions			(123.38)
Purchase of treasury stock	6.10	(18.93)
Other payments related to financing activities	6.8	(578.88)	(1,411.65)
NET CASH FLOW FROM FINANCING ACTIVITIES		(692.37)	(939.54)
Conversion differences in cash flow and cash balances		(1.92)	(24.41)
NET INCREASE/(DECREASE) IN CASH FLOW		336.09	337.40
OPENING CASH BALANCE		2,201.41	1,864.01
CLOSING CASH BALANCE		2,537.50	2,201.41

Figures in millions of ouros

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

್ತಾ

ITEM	IBERIA	LATAM NORTH	LATAM SOUTH	BRAZIL	NORTH AMERICA
1. REVENUE FROM INSURANCE BUSINESS
1. Premiums earned, net
a} Written premiums, direct insurance	7,709.22	1,945.79	1,591.72	3,977.51	2,307.16
b) Premiums from accepted reinsurance	8.54	27.31	4.99		24.58
c) Premiums from ceded reinsurance	(969.84)	(989.08)	(663.87)	(616.55)	(629.03)
d) Variations in provisions for unearned premiums and unexpired risks, net
Direct Insurance	(8.49)	(263.76)	(0.85)	(138.37)	77.58
Accepted reinsurance	1.81	(0.58)	(1.72)		(1.04)
Ceded reinsurance	131.14	254.98	(1.28)	(4.86)	71.38
2. Share in profits from equity-accounted companies	12.95
3. Revenues from investments
From operations	1,606.70	78.39	195.48	240.07	98.27
From equity	93.46	11.63	10.05	7.93	58.33
4. Unrealized galns on investments on behalf of life insurance pollcyholders bearing the investment risk	166.86	6.34	0.07	53.39
5. Other technical revenue	24.68	0.09	23,28		12.76
6. Other non-technical revenue	55.52	0.51	1.87	0.06	0.01
7. Positive foreign exchange differences	11.56	12.10	16.37
8. Reversal of the asset impairment provision	11.29		16.95
TOTAL REVENUE FROM INSURANCE BUSINESS	8,855.40	1,083.72	1,193.06	3,519.18	2,020.01
II. Expenses From INSURANCE BUSINESS
1. Incurred claims for the financial year, net a) Claims paid and variation in provision for outstanding claims,
net
Direct insurance	(6,031.93)	(651.55)	(1,260.29)	(1,963.40)	(1,451.16)
Accepted reinsurance	(13.64)	(13.48)	(0.44)		(19.73)
Ceded reinsurance	687.21	107.34	733.35	577.74	313.25
b) Claims-related expenses	(392.39)	(15.45)	(34.59)	(60.47)	(169.08)
2. Variation in other technical provisions, net	(415.88)	(75.16)	(88.80)	(158.23)	(0.32)
3. Profit sharing and returned premiums	(27.42)	(11.94)	(0.04)	(2.50)
4. Net operating expenses
a) Acquisition expenses	(1,155.83)	(283.07)	(385.16)	(1,253.32)	(578.65)
b) Administration expenses	(152.69)	(63.45)	(59.83)	(180.54)	(115.91)
c) Commissions and participation in reinsurance	132.32	69.10	81.33	97.83	152.40
5. Share in losses from equity-accounted companies
6. Investment expenses
a) From operations	(454.81)	(17.09)	(23.81)	(83.07)	(13.51) (3.64)
b) From equity and financial accounts 7. Unrealized losses on investments on account of life insurance	(71.84)	(1.04)	(0.82)
policyholders bearing investment risk	(54.65)	(0.26)
8. Other technical expenses	(84.62)	(15.01)	(22.70)	(1.72)
9. Other non-technical expenses	(131.53)	(0.60)	(2.10)	(1.92)	(8.55)
10. Negative foreign exchange differences	(9.77)	(12.33)	(23.48)	(5.58)
11. Allowance to the asset impairment provision	(17.72)		(17.55)		(15.93)
TOTAL EXPENSES FROM INSURANCE BUSINESS	(8,195.19)	(983.99)	(1,104.93)	(3,035.18)	(1,910.83)
RESULT FROM THE INSURANCE BUSINESS	660.21	99.73	88.13	484.00	109.18
III. OTHER ACTIVITIES				9,64	1.29
1. Operating revenue	297.94	10.15	12.70	(23.89)	(3.59)
2. Operating expenses 3. Net financial income	(265.53)	(9.73)	(9.48)
a) Financial Income	11.74	0.36	1.61	8.14	0.06
b) Financial expenses	(2.53)		(1.35)	(1.54)	(0.07)
4. Result from non-controlling interests
a) Share in profits from equity-accounted companies	0.14
b) Share in losses from equity-accounted companies
5. Reversal of asset impairment provision	2.28
6. Allowance to the asset Impairment provision	(2.38)
' Result from the disposal of non-current assets classified as held
for sale, not included in discontinued operations
		0.78	3.48	(7.65)	(2.31)
RESULT FROM OTHER ACTIVITIES W. RESULT ON RESTATEMENT OF FINANCIAL ACCOUNTS	41.66		(10.88)
RESULT BEFORE TAX FROM ONGOING OPERATIONS V.	701.87	100.51	80.73	476.35	106.87
TAX ON PROFIT FROM ONGOING OPERATIONS VI.	(121.57)	(24.90)	(18.76)	(149.67)	(28.23)
					78.64
RESULT AFTER TAX FROM ONGOING OPERATIONS VII.	580.30	75.61	61.97	326.68
RESULT AFTER TAX FROM DISCONTINUED OPERATIONS VHI.
ાંદ RESULT FOR THE PERIOD	580.30	75.61	61.97	326.68	78.64
1. Attributable to non-controlling interests	82.54	12.48	7.18	229.69
2. Attributable to the controlling company	497.76	63.13	54.79	96.99	78.64

figures in millions of euros

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

Código seguro de verificación (CSV): xlvfjCSHJswnKZUFv5fe	COPIA ELECTRÓNICA
Esta es una copia auténtica impimble de un documento electrónico archivado por la artículo 27.3 c) de la Ley 39/2015, de 2 de octubre. Su
autenticidad puede ser contrastada a través de la siguiente dirección: https://sede.cnmv/l.ibreAcceso/CSV.aspx

					CORPORATE AREAS
	EURASIA	ASISTENCIA	GLOBAL RISKS	REASEGURO	AND	TOTAL
ITEM					CONSOLIDATION
					ADJUSTMENTS
I. REVENUE FROM INSURANCE BUSINESS
1. Premiums earned, net
a) Written premiums, direct insurance	1,666.85	333.72			6.79	19,538.76
b) Premiums from accepted reinsurance	28.69	527.31	1,060.12	4,520.37	(2,696.75)	3,505.16
c) Premiums from ceded reinsurance	(458.57)	(240.87)	(883.80)	(1,379.51)	2,693.77	(4,137.35)
d) Variations in provisions for uneamed premiums and unexpired
risks, net	(43.43)	(21.11)			(4.07)	(402.49)
Direct insurance Accepted reinsurance	0.17	17.24	59.09	(109.96)	316.93	281.94
Ceded reinsurance	ટક વર્જ	13.38	(43.05)	221.02	(313.89)	386.90
2. Share in profits from equity-accounted companies	0.36				(5.28)	8.03
3. Revenues from investments
From operations	335.27	6.78	23.14	184.30	(5.20)	2,763.20
From equity	36.55			15.87	(2.70)	231.12
4. Unrealized gains on investments on behalf of life Insurance	7.95				(1.57)	233.04
policyholders bearing the investment risk					(0.25)	68.57
5. Other technical revenue	8.01			1.12	0.82	60.45
6. Other non-technical revenue	0.53	0.24	0.01 1,014.10	505.20	15.48	1,589.20
7. Positive foreign exchange differences	14.15			0.01		28.25
8. Reversal of the asset impairment provision TOTAL REVENUE FROM INSURANCE BUSINESS		636.69	1,229.61	3,958.42	4.08	24,154.78
IL EXPENSES FROM INSURANCE BUSINESS	1,654.61
1. Incurred claims for the financial year, net
a) Claims paid and variation in provision for outstanding claims,
net
Direct insurance	(1,070.47)	(135.94)			(19.38)	(12,584.12)
Accepted reinsurance	(36.31)	(243.37)	(782.50)	(3,194.80)	1,582.74	(2,721.53)
Ceded reinsurance	171.61	83.81	617.01	749.75	(1,565.48)	2,475.59
b) Claims-related expenses	(45.69)	(96.10)		(0.11)	(0.63)	(814.51)
2. Variation in other technical provisions, net	(273.58)			1.34	1.54	(1,009.09)
3. Profit sharing and returned premiums	(3.98)					( 45.88)
4. Net operating expenses
a) Acquisition expenses	(326.46)	(302.21)	(130.06)	(1,086.44)	481.06 4.94	(5,020.14) (723.89)
b) Administration expenses	(116.53)	(23.64)	(1.89)	(14.35) 265.16	(479.74)	635.79
c) Commissions and participation in reinsurance	169.40	88.20	59.79
5. Share in losses from equity-accounted companies
6. Investment expenses			(5.69)	(47.58)	2.48	(711.41)
a) From operations	(67.02)	(1.31)		(3.56)	(0.03)	(81.16)
b) From equity and financial accounts 7. Unrealized losses on investments on account of life Insurance	(0.17)
policyholders bearing investment risk						(54.91)
8. Other technical expenses	(6.54)	(21.34)		(2.78)	(0.40)	(155.11)
9. Other non-technical expenses	(3.96)			(9.31)	(7.27)	(165.24)
10. Negative foreign exchange differences	(8.53)	0.41	(1,012.14)	(512.96)	(4.08)	(1,589.46)
11. Allowance to the asset impairment provision	(4.31)		0.24	(0.42)	(0.25)	(રેટ એવ)
TOTAL EXPENSES FROM INSURANCE BUSINESS	(1,623.54)	(651.49)	(1,255.24)	(3,856.00)	(4.56)	(22,621.01) 1,533.77
RESULT FROM THE INSURANCE BUSINESS	31.07	(14.80)	(25.63)	102.36	(0.48)
III. OTHER ACTIVITIES					(67.18)	385.33
1. Operating revenue	3.00	117.79			(71.76)	(515.72)
2. Operating expenses	(2.79)	(128.95)
3. Net financial income	0.40	4.88			20.46	47.65
a) Financial Income	(0.29)	(2.74)			(79.67)	(88.19)
b) Financial expenses 4. Result from non-controlling interests
a) Share in profits from equity-accounted companies					4.31	4.45
b) Share in losses from equity-accounted companies					(0.02)	(0.02)
5. Reversal of asset impalrment provision		(0.03)			6.79	0.04
6. Allowance to the asset impairment provision		(୧୯୮୧୦)			(7.41)	(75.38)

Result from the disposal of non-current assets classified as held
for sale, not included in discontinued operations
RESULT FROM OTHER ACTIVITIES	0.32	(74.64)			(194.48)	(232.84)
RESULT ON RESTATEMENT OF FINANCIAL ACCOUNTS IV.		(0.69)			(10.07)	(21.64) 1,279.29
RESULT BEFORE TAX FROM ONGOING OPERATIONS	31.39	(90.13)	(25.63)	102.36	(205.03) 41.03	(324.03)
TAX ON PROFIT FROM ONGOING OPERATIONS VI.	(6.57)	3.87	6.40	(25.63)
RESULT AFTER TAX FROM ONGOING OPERATIONS પ્રી.	24.82	(86.26)	(19.23)	76.73	(164.00)	955.26

RESULT AFTER TAX FROM DISCONTINUED OPERATIONS VIII.
RESULT FOR THE PERIOD 1X.	24.82	(86.26)	(19.23)	76.73	(164.00)	955.26
1. Attributable to non-controlling interests	છે. 75	1.73			2.65	346.02 609.24
2. Attributable to the controlling company	15.07	(87.99)	(19.23)	76.73	(166.65)
Plaures in millions of quros

ent for year ending december 31, 2019 NANCIAL INFORMATION BY SEGMENT - CONSOLIDATED INCOME STATE

The English version is a translation of the original in information purposes only. In case of discrepancy, the Spanish version shall prevail.

Código seguro de verificación (CSV): xlvfjCSHJswnKZUFv5fe	COPIA ELECTRONICA
Esta es una copia auténtica impimble de un documento electrónico archivado por la criculo 27.3 c) de la Ley 39/2015, de 2 de octubre. Su
autenticidad puede ser contrastada a través de la siguiente dirección: https://sede.cnmv/l.ibreAcceso/CSV.aspx

E FINANCIAL INFORMATION BY SEGMENT - CONSOLIDATED INCOME STATEMENT FOR YEAR ENDING DECEMBER 31, 2019

ITEM	IBERIA	LATAM NORTH	LATAM SOUTH	BRAZIL	NORTH AMERICA

I. REVENUE FROM INSURANCE BUSINESS
1. Premiums earned, net
a) Written premiums, direct insurance	7,645.30	1,292.55	1,605.75	3,972.20	2,402.41
b) Premiums from accepted reinsurance	12.61	16.80			22.87
c) Premiums from ceded reinsurance	(719.72)	(457.71)	(624.54)	(524.48)	(382,37)
d) Varlations in provisions for unearned premiums and unexpired
risks, net				(0.99)	17.89
Direct insurance	(131.05)	186.23 1.58	(34.52) 1.41		(1.97)
Accepted reinsurance	(4.20)		6.52	(7.54)	(87.46)
Ceded reinsurance	77.30	(190.93)
2. Share in profits from equity-accounted companies	20.58
3. Revenues from investments	1,286.58	68.04	175.75	234.23	76.70
From operations	101.65	10.48	12.30	10.16	40.82
From equity 4. Unrealized gains on investments on behalf of life Insurance
policyholders bearing the investment risk	49.45	0.44	0.01	50.02
5. Other technical revenue	21.90	0.29	19.84	0.39	13:50
6. Other non-technical revenue	58.84	0.38	3.85	3.83	0.29
7. Positive foreign exchange differences	16.08	11.68	13.14
8. Reversal of the asset impairment provision	22.81		18.18
TOTAL REVENUE FROM INSURANCE BUSINESS	8,458.15	939.83	1,197.69	3,637.82	2,102.68
II. EXPENSES FROM INSURANCE BUSINESS
1. Incurred claims for the financial year, net
a) Claims paid and variation in provision for outstanding claims,
net				(2,038.82)	(1,928.05)
Direct Insurance	(5,628.17)	(724.62)	(2,016.56)		(22.75)
Accepted reinsurance	(1.89)	(8.04) 202.88	(3.17) 1,489.31	502.33	670.31
Ceded reinsurance	440.28	(12.87)	(35.54)	(84.12)	(174.85)
b) Claims-related expenses	(358.45)	(18.22)	(66.47)	(149.93)	(0.16)
2. Variation in other technical provisions, net	( 248.99) (25.06)	(7.97)	0.05	(1.57)
3. Profit sharing and returned premiums
4. Net operating expenses a) Acquisition expenses	(1,102.56)	( 260.56)	(395.46)	(1,183.88)	(571.40)
b) Administration expenses	(143.09)	(56.28)	(60.91)	(189.78)	(113.29)
c) Commissions and participation in reinsurance	121.29	61.16	82.00	74.48	114.45
5. Share in losses from equity-accounted companies
6. Investment expenses
a) From operations	(398.73)	(17.68)	(13.39)	(86.17)	(8.96
b) From equity and financial accounts	(86.17)	(1.06)	(0.70)		(3.24)
7. Unrealized losses on investments on account of life insurance		(1.30)
policyholders bearing investment risk	(142.60)
8. Other technical expenses	(68.84)	(13.84)	(20.10)	(2.32)
9. Other non-technical expenses	(129.76)	(0.78)	(2.94)	(3.47)	(0.90)
10. Negative foreign exchange differences	(14.74)	(11.55)	(21.98)		(8.29)
11. Allowance to the asset impairment provision	(18.34)		(23.26)
TOTAL EXPENSES FROM INSURANCE BUSINESS	(7,805.82)	(870.73)	(1,089.12) 108.57	(3,163.25) 474.57	(2,047.13) 55.55
RESULT FROM THE INSURANCE BUSINESS	652,33	69.10
III. OTHER ACTIVITIES	261.25	9.83	13.96	17.45	1.48
1. Operating revenue		(12.42)	(14.18)	(31.50)	(3.26)
2. Operating expenses	(213.16)
3. Net financial income	ಡಿ 8.89	0.24	6.32	28.70	0.06
a) Financial income			(0.25)	(1.59)	0.25
b) Financial expenses	(2.56)
Result from non-controlling interests	2.29
a) Share in profits from equilty-accounted companies b) Share In losses from equity-accounted companies
5. Reversal of asset impairment provision	2.25
6. Allowance to the asset impairment provision	(3.72)

' · Result from the disposal of non-current assets classified as held
for sale, not included in discontinued operations
RESULT FROM OTHER ACTIVITIES	56.24	(2.35)	5.85	13.06	(1.47)
RESULT ON RESTATEMENT OF FINANCIAL ACCOUNTS W.			(16.89)
RESULT BEFORE TAX FROM ONGOING OPERATIONS V.	708.57	66.75	97.53	487.63	54.08
TAX ON PROFIT FROM ONGOING OPERATIONS VI.	(154.51)	(13.31)	(29.90)	(197.28)	(19.18)
RESULT AFTER TAX FROM ONGOING OPERATIONS vii.	554.06	53.44	67.63	290.35	34.90

RESULT AFTER TAX FROM DISCONTINUED OPERATIONS VHI.
દ્ર RESULT FOR THE PERIOD	554.06	53.44	67.63	290.35	34.90
1. Attributable to non-controlling interests	73.48	9.77	8.51	236.21	(0.08)
2. Attributable to the controlling company	480.58	43.67	59.12	54.14	34.98

Figures in millions of euros

The English version is a translation of the original in information purposes only. In case of discrepancy, the Spanish version shall prevail.

CNMV

mapfre s.a. and subsidiaries

					CORPORATE AREAS
ITEM	EURASIA	MAPFRE ASISTENCIA	MAPFRE GLOBAL ક્ષિટિંદર્	Mapfre Re	AND CONSOLIDATION	TOTAL

1. REVENUE FROM INSURANCE BUSINESS 1. Premiums eamed, net
a) Written premiums, direct insurance	1,732.74	327.23	117.23		6.82	19,102.23
b) Premiums from accepted reinsurance	33.02	583.79	1,056.68	3,787.13	(2,078.03)	3,434.87
c) Premiums from ceded reinsurance	(491.02)	(223.89)	(899.84)	(1,027.98)	2,077.21.	(3,374.34)
d) Variations in provisions for unearned premiums and unexpired
risks, net						35.43
Direct Insurance	(70.94)	(20.92)	94.78	404.35	(5.05) (79.34)	172.54
Accepted reinsurance Ceded reinsurance	(3.41) 25.46	(42.03) 13.18	(103.85) 36.12	(112.31)	80.95	(158.71)
2. Share in profits from equity-accounted companles	0.19		3.90		(12.59)	12.08
3. Revenues from investments
From operations	132.76	5.65	28.85	172.61	(5.09)	2,176.09
From equity	33.47			7.65	(2.51)	214.03
4. Unrealized gains on investments on behalf of life insurance					(11.84)	88.09
policyholders bearing the investment risk	5.03		0.54		(0.48)	61.01
5. Other technical revenue 6. Other non-technical revenue	0.47			1.98	(0.11)	69.53
7. Positive foreign exchange differences	33.89	0.34	88.24	790.95	5.07	વેદરી 39
8. Reversal of the asset impairment provision	(0.00)			0.18		41.12
TOTAL REVENUE FROM INSURANCE BUSINESS	1,431.60	643.36	422.65	4,024.56	(24.99)	22,833.35
II. EXPENSES FROM INSURANCE BUSINESS
1. Incurred claims for the financial year, net
a) Claims paid and variation in provision for outstanding claims,
net Direct Insurance	(1,043.25)	(138.12)	(264.53)		(20.07)	(13,802.19)
Accepted reinsurance	(33.44)	(235.86)	(566.09)	(3,285.61)	1,691.24	(2,465.61)
Ceded reinsurance	212.87	79.33	656.76	1,096.04	(1,673.05)	3,677.06
b) Claims-related expenses	(42.56)	(102.84)	(4.44)	(0.11)	(0.06)	(815.84)
2. Variation in other technical provisions, net	(95.05)			2,26	11.81	(564.75)
3. Profit sharing and returned premiums	(3.97)		(0.18)			(38.70)
4. Net operating expenses
a} Acquisition expenses	(292.09)	(285.34)	(136.43)	(1,014.76)	431.68 4.59	(4,810.80) (745.58)
b) Administration expenses	(122.62)	(42.73)	(6.81) 51.91	(14.66) 214.88	(431.71)	567.66
c) Commissions and participation in reinsurance	195.31	83.89
5. Share in losses from equity-accounted companies
6. Investment expenses a) From operations	(147.28)	(1,12)	(15.57)	(22.65)	0.73	(710.82)
b) From equity and financial accounts	(0.14)			(1.55)	(0.05)	(92.91)
7. Unrealized losses on Investments on account of life insurance	(2.26)					(146.16)
policyholders bearing investment risk			(7.43)	(2.28)	0.47	(139.13)
8. Other technical expenses	(7.05)	(17.74)	(0.73)	(8.68)	(0.03)	(149.69)
9. Other non-technical expenses	(2.40) (14.30)	(1.12)	(87.06)	(794.57)	(1.38)	(946.70)
10. Negative forelyn exchange differences 11. Allowance to the asset impairment provision	(5.56)				(173.81)	(229.26)
TOTAL EXPENSES FROM INSURANCE BUSINESS	(1,403.79)	(661 (68)	(380.60)	(3,831.69)	(159.64)	(21,413.42)
RESULT FROM THE INSURANCE BUSINESS	27.81	(18.29)	42.05	192.87	(184.63)	1,419.93
OTHER ACTIVITIES 111.
1. Operating revenue	2.96	71.67	0.37		(57.97)	321.00
2. Operating expenses	(6.08)	(62.45)	(0.01)		(58.56)	(401.62)
3. Net financial income			0.02		25.11	82.58
a) Financial income	0.41	11.83			(78.04)	(85.29)
b} Financial expenses	(0.21)	(2.89)
4. Result from non-controlling interests a) Share In profits from equity-accounted companies						2.29
b) Share in losses from equity-accounted companies					(0.03)	(0.03)
5. Reversal of asset impairment provision					23.16	25.41
6. Allowance to the asset impairment provision					(11.37)	(15.09)
Result from the disposal of non-current assets classified as held
for sale, not included in discontinued operations			ﻪ ﺑﻪ ﺑﻪ
RESULT FROM OTHER ACTIVITIES	(2.92)	18.16	0.38		(157.70)	(70.75)
RESULT ON RESTATEMENT OF FINANCIAL ACCOUNTS N.		(0.52)			(1.31)	(18.72)
RESULT BEFORE TAX FROM ONGOING OPERATIONS V.	24.89	(0.65)	42.43	192.87	(343.64)	1,330.46
TAX ON PROFIT FROM ONGOING OPERATIONS VI.	(4.49)	(8.13)	(18.66)	(43.73)	36.25	(452.94)
RESULT AFTER TAX FROM ONGOING OPERATIONS પ્રામ.	20.40	(8.78)	23.77	149.14	(307.39)	877.52

VIR. RESULT AFTER TAX FROM DISCONTINUED OPERATIONS
RESULT FOR THE PERIOD 1×.	20.40	(8.78)	23.77	149.14	(307.39)	877.52
1. Attributable to non-controlling interests	7.95	1.33			11.49	348.66
2. Attributable to the controlling company	12,45	(10.11)	23.77	149.14	(318.88)	528.86

Figures in millions of euros

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

<-- PDF CHUNK SEPARATOR -->

F) SUPPLEMENTARY FINANCIAL INFORMATION BY PRODUCT AND GEOGRAPHICAL AREA

1. CONSOLIDATED ORDINARY REVENUES FROM EXTERNAL CLIENTS IN FINANCIAL YEARS ENDING DECEMBER 31, 2019 AND 2018

The breakdown of consolidated ordinary revenues, by product and country, in line with the segments broken down in Note 2.2, is as follows:

1.a)

Products	2019	2018

Life	4,891.08	4,875.70
Automobile	6,639.14	6,881.59
Homeowners and commercial risks	2,467.37	2,413.30
Health	1,069.55	1,032.42
Accidents	235.35	232.42
Other Non-Life	4,904.79	3,795.47
Reinsurance	5.581.59	5,429.72
Other Activities	899.94	882.22
Consolidation adjustments	(3,259.55)	(2.684.75)

TOTAL	23,429.25	22,858.10

Figures in millions of euros

1.b) Information by country

Geographic Area / Countries	2019	2018
IBERIA
Spain	7,880.28	7,785.21
Portugal	135.42	133.95
LATAM NORTH
Mexico	1,334.37	728.51
Panama	223.03	204.03
Other	425.85	386.64
LATAM SOUTH
Argentina	179.92	209.96
Chile	276.01	289.41
Colombia	383.46	395.16
Peru	551.68	491.55
Other	218.35	233.63
BRAZIL	3.987.15	3.989.65
NORTH AMERICA
United States of America	1,950.01	2,038.34
Puerto Rico	383.03	388.43
EURASIA
Italy	470.91	474.15
Malta	358 53	391.05
Turkey	450.09	487.13
Other	419.01	416.39
MAPFRE ASISTENCIA	978.82	982.69
MAPFRE GLOBAL RISKS	1,060.12	1.174.28
MAPFRE RE	4.520.37	3,787.13
CORPORATE AREAS
AND CONSOLIDATION ADJUSTMENTS	(2,757.16)	(2,129.19)
TOTAL	23,429.25	22,858.10

Figures in millions of euros

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

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Direct insurance and accepted reinsurance premiums, as well as operating revenues from non-insurance activities are considered as ordinary revenues.

2. NON-CURRENT ASSETS AT DECEMBER 31, 2019 AND 2018

The breakdown of non-current assets in line with the segments broken down in Note 2.2, is as follows:

Geographic Area / Countries	2019	2018
IBERIA
Spain	1,941.25	1,710.42
Portugal	22.64	14.03
LATAM NORTH
Mexico	150.34	88.88
Panama	57.11	56.46
Other	AA AA	37.27
LATAM SOUTH
Argentina	32.81	35.75
Chile	24.38	22.26
Colombia	41.90	21.93
Peru	187.68	162.72
Other	20.18	23.38
BRAZIL	748.51	677.63
NORTH AMERICA
United States of America	380.29	501.69
Puerto Rico	58.89	56.82
EURASIA
ltaly	57.00	51.55
Malta	208.78	184.40
Turkey	45.86	45.08
Other	44.59	39.98
MAPFRE ASISTENCIA	102.60	121.19
MAPFRE GLOBAL RISKS		9.49
MAPFRE RE	103.08	72.12
CORPORATE AREAS	749.67	710.30
AND CONSOLIDATION ADJUSTMENTS
TOTAL	5,022.00	4,643.35

Figures in millions of euros

Non-current assets include intangible fixed assets other than goodwill and portfolio acquisition expenses, property, plant and equipment, real estate investments, inventories, tax receivables, corporate and other receivables, other assets, and non-current assets held for sale and from discontinued operations, with information in Note 6.9 herein regarding the latter.

No client contributes, on an individual basis, more than 10 percent of the Group's ordinary revenues.

The English version is a translation of the original in information purposes only. In case of discrepancy, the Spanish version shall prevail.

CONSOLIDATED ANNUAL REPORT GI

1. GENERAL INFORMATION REGARDING THE COMPANY AND ITS ACTIVITIES

MAPFRE S.A. (hereinafter the "controlling company") is a listed public limited company and parent of a number of controlled companies engaged in insurance activity in its various lines of business, both Life and Non-Life, finance, securities investment, and services.

MAPFRE S.A. is a subsidiary of CARTERA MAPFRE, S.L. Single-Member Company (hereinafter, CARTERA MAPFRE), fully controlled by Fundación MAPFRE.

The scope of activity of the controlling company and its subsidiaries (hereinafter "MAPFRE", "the Group" or "MAPFRE Group") includes the Spanish territory, European Economic Area countries, and other countries.

The controlling company was incorporated in Spain and has its registered office in Majadahonda (Madrid), Carretera de Pozuelo 52

The MAPFRE Group activities are carried out through four business units: Insurance, Assistance, Global Risks and Reinsurance; three territorial areas: IBERIA, LATAM and INTERNATIONAL; and six regional areas: IBERIA (Spain and Portugal), BRAZIL, LATAM NORTH (Mexico, Dominican Republic, Panama, El Salvador, Nicaragua, Costa Rica, Honduras and Guatemala), LATAM SOUTH (Colombia, Venezuela, Ecuador, Peru, Chile, Argentina, Uruguay and Paraguay), NORTH AMERICA (United States, Puerto Rico and Canada), and EURASIA (Europe, Middle East, Africa and Asia-Pacific).

The Insurance Business Unit is organized according to the regional areas of MAPFRE, which comprise the geographical units that plan, support and supervise in the region.

The Reinsurance and Global Risks business comprise the legal entity MAPFRE RE.

The activity of the various Business Units is complemented by the Corporate Areas (Internal Audit, Strategy and M&A, Finance and Resources, Investment, Business and Clients, Operations, People and Organization, External Relations and Communications, General Counsel and Legal Affairs, Business Support and IT and Processes) which have global responsibilities for all the Group's companies worldwide regarding the development, implementation, and monitoring of global, regional and local corporate policies.

MAPFRE pushes for multi-channel distribution, adapting its commercial structure to the different legislations in which it operates.

The focus on the client, the global product offer, and the legal and commercial particularities of each of the markets in which it is present are some of the key factors of the company's business model.

The individual and consolidated annual accounts were prepared by the Board of Directors on February 11, 2020 and are expected to be approved by the Annual General Meeting. Spanish regulations provide for the possibility of modifying the consolidated annual accounts if they are not approved by the aforementioned sovereign body.

The English version is a translation of the original in information purposes only. In case of discrepancy, the Spanish version shall prevail.

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2. BASIS OF PRESENTATION OF THE CONSOLIDATED ANNUAL ACCOUNTS

2.1. BASIS OF PRESENTATION

The Group's consolidated annual accounts were prepared in accordance with the International Financial Reporting Standards as adopted by the European Union (EU-IFRS), with all companies having carried out the requisite standardization adjustments.

The consolidated annual accounts have been prepared on the cost model basis, except for financial assets available for sale, financial assets for trading and derivative instruments, which are recorded at their fair value.

There was no early application of the rules and interpretations which, having been approved by the European Commission, had not entered into force at the close of 2019. However, had there been any, their early adoption would not have affected the Group's financial situation and results, with the exception of what is indicated in Note 2.5 below.

2 2 FINANCIAL INFORMATION BY SEGMENT

Section E) of the consolidated annual accounts contains the financial information broken down by operating segment, which is aligned with the Group organizational structure and with the information provided to Management and to the market.

The organizational structure identifies the following operating segments based on the activities of the Business Units:

Insurance activity and other activities

INSURANCE
- IBERIA e
- BRAZIL
- LATAM NORTH
- LATAM SOUTH
- NORTH AMERICA
- EURASIA
ASSISTANCE
GLOBAL RISKS
REINSURANCE

Revenues and expenses from the Insurance business also include complementary activities relating to asset and real estate management, and from medical services, assistance, funeral services, technology services, and others. The operating segment corresponding to the Insurance Unit presents its information according to the structure of the Group's regional areas and taking into account the quantitative thresholds established in prevailing regulations.

The operating segments corresponding to the Assistance, Global Risks and Reinsurance Business Units include insurance and reinsurance activity, regardless of the geographic location.

The English version is a translation of the original in Spanish for information purposes only. In Spanish version shall prevail.

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Transactions between segments are recorded at fair value and eliminated in the consolidation process.

The amounts shown under "Corporate Areas and consolidation adjustments" include expenses for services rendered by the Corporate Areas and the adjustments made on consolidation.

The Consolidated Management Report contains additional information on business performance and characteristics.

2.3 FINANCIAL INFORMATION BY PRODUCT AND GEOGRAPHIC AREA

Section F) of the consolidated annual accounts contains supplementary financial information broken down by product and geographical area.

The information by product is presented for the main activity lines, which are:

ක l ife
Automobile
Homeowners and commercial risks
Health
Accidents
Other Non-Life
Reinsurance
Other Activities

The information shown for each geographic area is broken down by the main countries comprising the Group's regional areas, as indicated in Note 1 herein.

2.4. CHANGES IN ACCOUNTING POLICIES, CHANGES IN ESTIMATES AND ERRORS

As a result of EU-IFR 16 "Leases" entering into force on January 1, 2019, which repeals the previous EU-IAS 17 "Leases", there has been a change in the Group accounting policy effective in the current and future years. The main implications are related to leasing contracts in which the Group is the lessee.

In line with the transitory provision of the standard, the Group has applied the modified retroactive approach, recognizing the accumulated effect net of taxes as a negative adjustment on the reserves and non-controlling interest balances, for the amount of 8.36 and 4.73 million euros, respectively. The information from 2018 has not been restated on a like for like basis.

In addition, at the close of the year, the following effects were produced:

· An increase in assets and liabilities of 286.53 and 315.58 million euros, respectively.
· A decrease in operating expenses and an increase in financial expenses of 13.52 and 17.24 million euros, respectively. The amount of financial expenses will reduce gradually, with financial criteria, during the estimated term of the contracts.
· A fall of 2.42 million euros in the result for the period attributable to the controlling company. This amount will be offset entirely at the end of the estimated term of the contracts.

The English version is a translation of the original in information purposes only. In case of discrepancy, the Spanish version shall prevail.

The adoption of IFRIC 23 "Uncertainty over Income Tax Treatments" which enters into force for years beginning as of January 1, 2019, has not had a significant impact on the financial situation or results of the Group.

No significant errors have been detected in the consolidated accounts from previous years.

2.5. COMPARISON OF INFORMATION

With the exception of the change in accounting policy described above in Note 2.4, which causes the information related to leases in 2018 included in these Notes to the Consolidated Financial Statements to not be comparative with the information for 2019, there are no other reasons preventing the consolidated annual accounts of this reporting period from being compared with those of the previous period, as they have been prepared in line with the international standards approved by the European Commission and which were in force at the close of the year.

At the date when these annual accounts were prepared, the following information is noteworthy:

The Group is analyzing the possible impact of IFRS 17 "Insurance Contracts", which is expected to be applicable to reporting periods beginning on or after January 1, 2022, and which was approved by the International Accounting Standards Board (IASB), and has not yet been adopted by the European Union. The impact is expected to be significant.
In relation to EU-IFRS 9 "Financial instruments", which is also expected to have a significant impact, and the modification of EU-IFRS 4 "Insurance Contracts", which will apply to reporting periods beginning on or after January 1, 2018, the Group, by virtue of the provisions set out in the latter standard, has made use of the temporary deferral approach from the application of IFRS 9 for companies operating primarily in insurance activity (more than 90 percent of liabilities are related to insurance activity). Said temporary deferral is applicable until reporting periods beginning on or after January 1, 2022, on which date the new JFRS 17 "Insurance Contracts" will enter into force.

With the aim of analyzing potential impacts from the application of EU-IFRS 9 "Financial instruments" and to improve the comparability of the information between companies that are applying said regulation and those that have opted for deferral, the modification of EU-IFRS 4 "Insurance Contracts" requires the inclusion of certain information related to flows from financial assets recorded at amortized cost or recorded as assets available for sale. Considering the Group has analyzed the fixed income assets classified in the headings "Held to maturity portfolio" and "Available for sale portfolio", with the detailed information required for the annual accounts given in Note 6.4. "Financial Investments".

The Group shall adopt, upon their entry into force, all other applicable standards, amendments and interpretations. The initial application of such is not expected to have a significant impact on the Group's financial situation or result.

The English version is a translation of the original in information purposes only. In case of discrepancy, the Spanish version shall prevail.

2.6. CHANGES IN THE SCOPE OF CONSOLIDATION

The companies that were included in the scope of consolidation are listed in Annex 1, along with all the other changes to said scope.

Annex 2 includes the main companies of the Group, with their equity and results information.

The result for the period arising from the loss of control in controlled companies is insignificant (these losses of control are described in Annex 1).

The overall effect on the Group's consolidated equity, financial position and results in 2019 and 2018 derived from other changes in the scope of consolidation with respect to the preceding year is described in the corresponding notes of the consolidated annual report.

2.7. ACCOUNTING JUDGMENTS AND ESTIMATES

In the preparation of the consolidated annual accounts under EU-IFRS, the controlling company's Board of Directors has made judgments and estimates based on assumptions about the future and uncertainties that basically refer to:

The technical provisions (Note 6.13).
Impairment losses on certain assets (Notes 6.1, 6.2 and 6.4).
· The calculation of provisions for risks and expenses (Note 6.14).
The actuarial calculation of post-employment remuneration-related commitments and liabilities (Note 6.21).
· The useful life of intangible assets and of property, plant & equipment items (Notes 5.3 and 6.1).
· The fair value of certain non-listed assets (Note 6.4).
· The fair value of assets and liabilities from lease contracts (Note 6.3).

The estimates and assumptions used are reviewed regularly and are based on past experience and other factors that may have been deemed more reasonable in each instance. If these reviews lead to changes in estimates in a given period, their effect shall be applied during that period and, where relevant, in subsequent periods.

3.1. CONTROLLED COMPANIES, ASSOCIATED UNDERTAKINGS AND JOINT ARRANGEMENTS

The controlled companies, associated undertakings and joint arrangements included in the consolidation are listed, indicating the integration method, in the table of acquisitions of controlled companies attached as Annex 1 to the consolidated annual report.

Companies are configured as controlled companies when the controlling company holds power over the investee entity, has exposure or rights to variable returns, and has the capacity to influence those returns through the power exercised in the entities. Controlled companies are consolidated from the date when the

The English version is a translation of the original in Spanish for information purposes only. In asse of discrepancy, the Spanish version shall prevail.

^3. CONSOLIDATION

Group acquires control, and are excluded from the consolidation on the date when it ceases to have such control

In controlled companies where 50 percent or less of the economic rights are held, the classification as "controlled company" is based on the provisions set out in the shareholder agreements, which can contemplate the following scenarios:

The administration of the companies is carried out by a Board of Directors, which is responsible for their operating and financial strategies as well as their administration and management, and for overseeing their financial and operating policies, among others. In these cases the Board of Directors is made up of an even number of members and the chairman is always appointed at the recommendation of MAPFRE. The chairman has the casting vote, therefore exercising control over the company.
any other key personnel for the management and control of the company.
The political rights established do not coincide with the economic rights, which means that MAPFRE has the majority of the voting rights in the Annual General Shareholders' Meeting. Additionally, in these cases the Board of Directors is made up of an even number of members and in the event of a tie one of the directors appointed at the recommendation of MAPFRE has the casting vote.

Non-controlling interests in controlled companies acquired since January 1, 2004 are recorded at the fair value of the percentage of purchased net assets identifiable at the acquisition date. Those acquisitions made nvior to the abovementioned date were recorded at the percentage of purchased net assets at the date of the first consolidation.

Non-controlling interests are shown in consolidated equity separately from the equity attributable to the controlling company shareholders. Non-controlling interests of controlled companies in the consolidated results for the period (and in the total comprehensive consolidated result for the period) are also shown separately in the consolidated income statement (consolidated statement of comprehensive income).

Associated undertakings are companies in which the controlling company exercises a significant influence but which are neither controlled companies nor joint arrangements.

Significant influence is understood as the power to intervene in decisions on financial and operating policies of the investee company, but without controlling or jointly controlling these policies, presuming that there is significant influence when, either directly or indirectly through its controlled companies, at least 20 percent of the voting rights of the investee company is owned.

Interests in associated undertakings are consolidated by the equity method, including, in the value of interests, the net goodwill identified at the date of acquisition.

When the Group's participation in the losses of an associated undertaking is equal to or higher than the book value of its stake, including any unsecured receivable, the Group does not record additional losses, unless obligations have been incurred or payments have been made on behalf of the associated undertaking.

To determine if an investee company is controlled or associated, the purpose and design of the investee company have been taken into account to ascertain the relevant activities, the way that decisions are taken

The English version is a translation of the original in information purposes only. In case of discrepancy, the Spanish version shall prevail.

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on these activities, who has the current capacity to direct these activities and who receives their financial returns. The potential voting rights held and exercisable such as purchase options on shares, debt instruments convertible into shares or other instruments giving the controlling company the possibility to increase their voting rights have also been considered.

A joint arrangement is considered to exist when two or more entities undertake an economic activity subject to shared control regulated by means of contractual agreement.

A joint arrangement is classified as a joint venture when the parties have rights to the net assets, in which case their acquisitions are recorded in the consolidated annual accounts using the equity-accounted method.

A joint arrangement is classified as a joint operation when the parties have rights to the net assets and obligations for the liabilities, in which case their interests are recorded in the consolidated annual accounts using the proportionate consolidation method.

The financial statements of the controlled companies, associated undertakings and joint arrangements used for the consolidation correspond to the years ending December 31, 2019 and 2018.

3.2. MUTUAL FUNDS

Mutual funds managed by Group companies in which the participation is greater than 20 percent (30 percent until 2018, and the amount of funds in which the Group's participation was between 20 and 30 percent at the close of said year was not relevant) were consolidated by global integration method.

3.3. Conversion of annual accounts of Foreign Companies included in The Consolidation

The functional and presentation currency of the MAPFRE Group is the euro. Accordingly, the balances and operations of Group companies with a different functional currency are translated into euros using the closing exchange rate for balance sheet balances and the average exchange rate weighted for the volume of operations, for transactions.

The exchange differences resulting from applying the aforementioned procedure, as well as those arising from the conversion of loans and other foreign currency hedging instruments for investments in foreign activities, are presented as a separate component in the "Consolidated Statement of Other Comprehensive Income" and are shown under equity in the "Currency conversion differences" account, deducting the part of the difference that corresponds to non-controlling interests.

Goodwill and fair value adjustments of assets and liabilities arising from the acquisition of Group companies whose presentation currency is not the euro are treated as assets and liabilities of overseas activities. As such, they are stated in the functional currency of the overseas undertaking and translated at the closing exchange rate.

Hyperinflationary economies

The financial statements of the companies registered in countries with a high inflation rate or hyperinflationary economies are adjusted or restated for the effects of changes in prices before their conversion into euros. Adjustments for inflation are performed in line with IAS 29 "Financial reporting in hyperinflationary economies".

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

The Group accounting policy for recording operations in hyperinflationary economies consists of fecording in The Group accounting policy for recording operation of the currency conversion differences generated reserves both the revaluation of the restated financial statements of subsidiaries in these countries. While from the collers of the resulted by market regulators in previous years, in response to a this accounting criterial has been accepted by many of the above-described policy is not a relies are consultation presented in 2023) the into have requested a more thorough analysis from the FRIC, acceptable: The Group and other maniso paypus accounting policy. At the date of preparation of the annual providing solla argaments that bapper one IFRIC, and thus the criteria indicated has been maintained;
accounts, a decision has not been reached by the IFRIC, and thus the of accounts, a decision has not been reading treatment would entail reclassifying the net amounts of the impacts of the restatement and the conversion to the heading "Currency conversion differences".

The amounts recognized in Reserves in the last two years from these effects are the following:

tem	Balance 12.31.17	Variation 2018	Balance 12.31.18	Variation 2019	Balance 12.31.19
Restatement for inflation Currency conversion differences	517.30 (889.90)	25.51 (180.90)	542.81 (1,070.80)	21.99 (31.99)	564.80 (1,102.79)
Net	(372.60)	(155.39)	(527.99)	(10.00)	(537.99)

Million euros

Variations in Currency conversion differences from 2018 include 95.60 million euros from subsidiaries in variations in Carrency Conversion and which were reclassified to Reserves in 2018, the year in which the country began to be considered hyperinflationary.

The following chart gives details about other data related to the conversion of the annual accounts from companies operating in hyperinflationary economies:

Country	Inflation (%)		Exchange rate (units of currency per euro)		Results from restatement		Equity
	2019	2018	2019	2018	2019	2018	2019	2018
Argentina Venezuela	દિવે 5,790	48 702,404	67 150,636	43 4,699	(11.57) (10.07)	(17.41) (1.31)	49.12 6.34	47.03 3.54
Total (million euros)				(18.72)	(18.72)	55.46	50.57

Regarding the exchange rate shown for Venezuela (the Sovereign bolivar), given that there is not reliable Regarding the exchange fute shown for Venezacio (size of the consolidation of the financial statements, an exchange rate based on the estimated inflation in the country has been considered.

The results of the restatement are included in the Consolidated Income Statement and represent the loss of purchasing power of the net monetary assets from inflation.

The English version is a translation of the original in information purposes only. In case of discrepancy, the Spanish version shall prevail.

Adjustments to the opening balance

The adjustments to opening balance columns in the different tables of the consolidated annual report include the variations that occurred as a result of applying a different conversion exchange rate to the figures for overseas subsidiaries.

The variations in the technical provisions shown in the consolidated income statement differ from those obtained from the difference between the previous balances on the consolidated balance sheets for this year and the previous year as a result of applying a different conversion exchange rate to the figures for overseas subsidiaries.

	4. EARNINGS PER SHARE AND DIVIDENDS

4.1. EARNINGS PER SHARE

The calculation of the basic earnings per share--which matches the diluted gains per share, since there is no ordinary potential share—is shown below:

Item	2019	2018
Net profit attributable to controlling company's shareholders (million euros) Weighted average number of ordinary shares outstanding (million)	609.24 3.051.88	528.86 3,054.26
Basic earnings per share (euros)	19.96	17.32

4.2. DIVIDENDS

The breakdown of the dividends paid by the controlling company in the last two years is shown below:

Item	Total dividend (million euros)		Dividend per share (euro cents)
	2019	2018	2019	2018
Interim dividend Final dividend	184.77 261.76	184.83 261.64	6.060 8.585	6.050 8.570
TOTAL	446.53	446.47	14.65	14,62

The dividends per share indicated in the table above correspond to the amount for all outstanding shares, at the date of payment of the dividend.

The total dividend for 2019 was proposed by the Board of Directors and is pending approval by the Ordinary Annual General Meeting.

The planned dividend payout complies with the requirements and limitations that are set out in the legal regulations and the corporate bylaws.

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

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In 2019 the controlling company distributed an interim dividend equivalent to a total amount of 184,773,244.10 euros, which is recorded in equity under the heading "Interim dividend". The liquidity statement prepared by the Board of Directors for the distribution is shown below.

Item	Date of Resolution Sep. 28 2018
Cash available on date of the resolution	6.19
Increases in cash forecast within one year	804.61
(+) From expected current collection transactions	704.61
(+) From financial transactions	100.00
Decreases in cash forecast within one year	(401.64)
(-) From expected current payment transactions	(94.94)
(-) From expected financial transactions	(306.70)
Cash available within one vear	409.16

Flaures in millions of euros

5. ACCOUNTING POLICIES

The accounting policies applied to the following entries are indicated below:

5.1. INTANGIBLE ASSETS

GOODWILL

Goodwill on merger

This represents the excess of cost paid on a business combination over the fair value of the identifiable assets and liabilities at the date of the merger.

Consolidation differences

Goodwill on consolidation ණ

This represents the excess net acquisition costs paid over the fair value of the interest in the equity of the controlled company at the date of acquisitions realized before January 1, 2004, which correspond to goodwill net of amortization recorded in line with Spanish legislation in force at the time. In the case of acquisitions of stakes in the controlled company from non-controlling interests subsequent to the initial one, the controlling company recognizes this excess as a lower amount of reserves.

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

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Negative consolidation difference �

Where the value of the identifiable assets acquired less the value of accepted liabilities is higher than the acquisition cost, this difference is recorded as revenue in the consolidated income statement.

Goodwill impairment

After its initial recognition and allocation to a cash-generating unit, its possible loss in value is assessed at least once a year. When the recoverable amount of said cash generating unit is below the net book value, the corresponding loss in value is recognized immediately in the consolidated income statement.

OTHER INTANGIBLE ASSETS

Other intangible assets from an independent acquisition

Intangible assets acquired from third parties in a market operation are valued at cost. If their useful life is finite they are amortized based on that life and, if their useful life is indefinite, the value impairment tests are undertaken at least once a year.

Internally-generated intangible assets

Research expenses are directly recognized on the consolidated income statement for the year in which they are incurred. Development expenses are recorded as an asset when their probability, feasibility and future recoverability can be reasonably ensured. They are valued by the disbursements made.

The capitalized development expenses are amortized during the period in which revenues or yields are expected to be obtained without prejudice to the valuation that would be made if impairment occurs.

Amortization of limited useful life intangible assets

@ Portfolio acquisition costs

These costs are amortized over the life of the portfolios, in a maximum period of 30 years, and depending on their cancellation.

Other intangible assets ●

These are amortized based on their limited useful life following a linear method. The amortization has been recorded as "Provision for amortization" in the expense account by nature.

5.2. BUSINESS COMBINATIONS

The controlling company identifies a business combination when the assets acquired and the liabilities assumed in a transaction constitute a business. The combinations are recorded by applying the acquisition method.

The English version is a translation of the original in information purposes only. In case of discrepancy, the Spanish version shall prevail.

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Códiqo seguro de verificación (CSV): xIvfjCSHJswnKZUFv5fe	COPIA ELECTRONICA
Esta es una copia auténtica impimble de un documento electrónico archivado por la Criculo 27.3 c) de la Ley 39/2015, de 2 de octubre. Su
autenticidad puede ser contrastada a través de la siguiente dirección: https://sede.comv/LibreAcceso/CSV.aspx

On the acquisition date, which is when control of the acquired business or company is obtained, the goodwill, the identifiable assets acquired, the liabilities assumed, and any non-controlling interest in the acquire are recognized separately.

Goodwill represents the excess of cost, including deferred payments, whether certain or contingent, over the net amount on the date of acquisition of the identifiable assets acquired and the liabilities assumed. In line with the provisions under EU-IFRS 3, the Group has chosen not to increase goodwill in proportion to noncontrolling interests.

Initially, the identifiable assets and liabilities assumed are recorded at fair value on the acquisition date. Any acquisition-related costs incurred by the acquirer are recognized as an expense in the period in which they are incurred, except in the case of any costs incurred in issuing debt or shares.

Subsequently, the acquiring company measures the assets acquired, liabilities assumed and equity instruments issued in the business combination in line with the valuation rules applied to those items, according to their nature.

In business combinations carried out in stages, on the date on which control of the acquisition is obtained, the controlling company once again measures its previously held interests in the acquiree's equity at their acquisition-date fair value and recognizes any resulting gain or loss in the consolidated income statement. Likewise, any valuation change adjustments pending allocation to the result for the period are transferred to the consolidated income statement.

When the valuation process necessary to apply the acquisition method cannot be concluded on the closing date of the fiscal year, annual accounts are prepared with provisional data. These values are adjusted within the necessary period to complete the initial accounting, which period shall never exceed one year from the date of acquisition.

When the business combinations have been recognized in the accounts, any modifications to contingent payments are recorded, for combinations undertaken on or after January 1, 2010, in the consolidated income statement; combinations undertaken earlier are recorded as a change in the business combination cost.

5.3. PROPERTY, PLANT AND EQUIPMENT AND REAL ESTATE INVESTMENTS

Property, plant and equipment and real estate investment are valued at their net acquisition cost minus their accumulated amortization and, if applicable, accumulated losses due to impairment.

Investments classified as real estate investments are those non-current real estate assets intended to obtain rental income, gains or both.

Costs incurred after their acquisition are recognized as an asset only when the future financial profits related to them are likely to revert to the Group and the cost of the item may be accurately determined. All other expenses associated with maintenance and repair are charged to the consolidated income statement during the year in which they are incurred.

The depreciation of these elements is calculated linearly based on the cost of acquisition of the asset, less its residual value and the value of the land according the following periods of useful life:

The English version is a translation of the original in information purposes only. In case of discrepancy, the Spanish version shall prevail.

Código seguro de verificación (CSV): xIvfjCSHJswnKZUFv5fe	COPIA ELECTRONICA
Esta es una copia auténtica imprimible de un doumento electrónico archivado por la artículo 27.3 c) de la Ley 39/2015, de 2 de octubre. Su
autenticidad puede ser contrastada a través de la siguiente dirección: https://sede.cnmv/LibreAccess/CSV.aspx

ITEM GROUP	YEARS	ANNUAL RATIO
Buildings and other structures	50-25	2%-4%
Vehicles	6.25	16%
Furniture	10	10%
Fittings	20-10	5%-10%
Data processing equipment	4-10	25%

The residual value and the useful life of assets are reviewed and adjusted if necessary at the close of each year.

These assets are written off in the accounts when they are transferred or when future economic profit derived from their continuous use is not expected to be obtained. The gains or losses resulting from writing the aforementioned elements off are included on the consolidated income statement.

5 4 IFASING

The Company considers that a contract constitutes, or contains, a lease when it entails the right to control the use of a specified asset for a certain period of time in exchange for compensation.

The leases in which inherent all risks and benefits of the leased property are transferred to the lessee are classified as financial leases.

Leases in which the lessor maintains a significant part of the risks and benefits derived from ownership of an underlying asset are classified as operating leases.

At the date of application of EU-IFRS16 "Leases", the Group adopted the practical solution of not evaluating whether or not a contract is or contains a lease.

Lease term

The lease term is determined according to the non-cancellable period, bearing in mind as well the periods covered with the option of extending or cancelling the lease when there is reasonable certainty that the lessee will exercise this option.

Should there be a change during the non-cancellable period of a lease, the term of said lease will be revised.

Recognition and measurement

As a lessee, the Group recognizes at the date the lease enters into force a right-of-use asset and a lease liability, in line with the payments established in the contract and its estimated term. The initial measurement of the asset is made at cost, and that of the liability is made at the present value of future payments discounted at the incremental interest rate for the debt for said lease.

Subsequently, the right-of-use asset will be measured at cost minus amortization and the accumulated losses for the impairment in value, and adjusted where necessary by new measurement of the liability.

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

Código seguro de verificación (CSV): xIvfjCSHJswnKZUFv5fe	COPIA ELECTRONICA
Esta es una copia auténtica imprimible de un doumento electrónico archivado por la crículo 27.3 c) de la Ley 39/2015, de 2 de octubre. Su autenticidad puede ser contrastada a través de la siguiente dirección: https://sede.cnmv/l.ibreAcceso/CSV.aspx

MAPERES A AND SUBSIDIARIES

In the case of contract review, the passive will be newly measured, discounting the modified lease payments.

The result for the period will recognize amortizations expenses and interest on the liability, and where relevant the variable lease payments not included in the initial measurement.

As a lessor, the Group recognizes the assets it holds as financial leases for the amount equal to the net lease investment measured using the implicit interest for the lease, and presenting them as a caption pending collection. Subsequently, financial income is recognized during the lease term, recording a constant periodic return on net investment. For operation leases, income from payments for the lease are recognized linearly or through another systematic method if it is more representative.

Exemptions

The Group, as a lessee, applies the exemptions contemplated to not include short-term contracts (by underlying asset class) as leases, and for those in which the underlying asset has limited value (contract by contract), recognizing lease payments as expenses linearly for the lease term, or through another systematic method if it is more representative.

5.5. FINANCIAL INVESTMENTS

Recognition

Financial assets traded on secondary securities markets are generally recognized on the settlement date.

Classification

Financial investments are classified in the following portfolios:

Held-to-maturity portfolio 8

This includes the securities for which there is the intention and proven financial capacity to hold them until their maturity.

Available-for-sale portfolio a

This includes debt securities not classified in other portfolios and the capital instruments of companies that are not controlled, associated or joint arrangements and that are not included in the "Trading portfolio".

Trading portfolio @

This includes financial assets originating or acquired with the objective of selling them in the short term, that are part of a portfolio of financial instruments identified and managed together for which there is proof of recent actions to obtain gains in the short term.

The English version is a translation of the original in information purposes only. In case of discrepancy, the Spanish version shall prevail.

Código seguro de verificación (CSV): xlvfjCSHJswnKZUFv5fe	COPIA ELECTRONICA
Esta es una copia auténtica impimble de un documento electrónico archivado por la atículo 27.3 c) de la Ley 39/2015, de 2 de octubre. Su autenticidad puede ser contrastada a través de la siquiente dirección: https://sede.cnmv/LibreAceso/CSV.aspx

Derivative instruments not assigned to a hedging operation and hybrid financial assets completely valued at their fair value are also part of this portfolio.

In hybrid financial assets that simultaneously include a main contract and a financial derivative, these two components are separated and treated independently for the purpose of classifying and valuing them. When this separation is not possible, they are valued at their fair value.

Valuation

In their initial recognition on the balance sheet, all financial investments are recognized at the fair value of the provided remuneration plus, in the case of financial investments not classified in the "trading portfolio", the transaction costs that are directly attributable to their acquisition. Fair value is the price that would be received for the sale of a financial asset through a transaction ordered between market participants on the date of valuation.

Subsequently, financial investments are measured at their fair value without deducting any transaction cost that may be incurred due to their sale or any form of disposition, with the following exceptions:

a) Financial investments included in the "held-to-maturity portfolio", which are measured at their amortized cost using the effective interest rate method.
b) derivatives that are underlying for these instruments and that are settled by providing them, and that are measured at cost.

The fair value measurement of financial investments included in the available-for-sale portfolio and the trading portfolio are classified according to the levels of the variables used in their valuation:

Level 1. Quoted price: Unadjusted price quoted in active markets.
- Level 2. Observable data: Prices quoted in active markets for instruments similar to the one being valued or other valuation techniques in which all the significant variables are based on observable market data. The valuation is made via a model that discounts future financial flows, including the reimbursement value, using a rate curve with two main components:
- · Zero coupon swap curve of the currency of the issuance, which is considered to be the best approximation to the risk-free interest rate.
- · Spread of the additional risk, which will be the spread added to or subtracted from the zero coupon swap curve that reflects the risks inherent to the issuance being valued, such as credit, liquidity or optionality risk.
- Level 3. Other valuations: Variables specific to each case. For these purposes, it is possible to distinguish between:
- · Equity assets, where in general the realizable value is estimated according to the individual characteristics of the asset

The English version is a translation of the original in Spanish for information purposes only. In Case of discrepancy, the Spanish version shall prevail.

· Fixed-income assets with complex future flow structures (interest rates linked to financial variables, with caps and/or floors) and one or more early redemptions, and in which the issuer has no similar issuances on the market or any unquoted issuances from an issuer with no similar issuances. In these cases, the assets are usually valued by requesting a valuation from a benchmark third party.

Impairment

The book value of financial investments is corrected under the consolidated income statement when there is objective evidence that an event which entails a negative impact on its future cash flows has occurred or in any other circumstance that would indicate the inability to recover the investment cost of the financial instrument. The amount of losses due to impairment is equal to the difference between its book value and the current value of its future estimated cash flows.

For fixed-income securities in which there is a defaulted interest and/or principal, the potential loss is estimated according to the situation of the issuer. For all other fixed-income securities, an analysis is undertaken based on their credit quality and the degree of solvency of the issues, proceeding to record the impairment if the risk of non-payment is considered to be likely.

For equity instruments, an individual analysis of the investments is undertaken to determine whether or not impairment has occurred. Furthermore, impairment is considered to have occurred when there are prolonged (18 months) or significant (40 percent) decreases in market value in terms of its cost.

The amount of estimated losses due to impairment is recognized on the consolidated income statement, also including any reduction of the fair value of the investments previously recognized in "Valuation change adjustments". The reversal is recognized in the consolidated income statement, except for in the case of equity instruments. In this case, the valuation adjustment recorded in prior years is not recognized in the income statement, but rather any increase in value is taken directly to equity.

For financial swaps of flow exchanges, the amounts accrued for main operations are recognized, posting the resulting amount of the flows under the headings "Other financial liabilities" or "Corporate and other receivables", as applicable.

5.6. INVESTMENTS ON BEHALF OF LIFE INSURANCE POLICYHOLDERS BEARING THE INVESTMENT RISK

These are made in fixed-income securities and mutual funds which are measured at the acquisition cost when they are underwritten or purchased. The acquisition cost is adjusted as greater or lower value of the investment, as applicable, according to its fair value at the close of the period, determined as follows:

Equities: at their market value (Level 1).
Fixed-income securities: at the market value if this is representative (Level 1); if this is not the case, by restating the future flows, including the redemption value (Level 2).
· Mutual funds holdings: at their net asset value (Level 1).

Revaluations and depreciations of these assets are recorded as revenues or expenses in the consolidated income statement corresponding to the segment of the insurance unit.

The English version is a translation of the original in information purposes only. In case of discrepancy, the Spanish version shall prevail.

5.7. IMPAIRMENT OF OTHER ASSETS

At the close of each financial year the Group assesses whether there are any signs that the asset items may have suffered a loss in value. If there are such signs, the recoverable value of the asset is estimated.

For assets that are not fit for use and intangible assets with an indefinite useful life, the recoverable value is estimated whether or not there are signs of impairment.

If the book value exceeds the recoverable amount, a loss is recognized for this excess, reducing the book value of the asset to its recoverable amount.

If there is an increase of the recoverable value of an asset other than the goodwill, the previously recognized loss due to impairment is reversed, increasing the book value of the asset to its recoverable value. This increase never exceeds the book value net of amortization that would have been recorded if an impairment loss had not been recognized in previous years. The reversal is recognized in the consolidated income statement, unless the asset has already been revalued against "Valuation change adjustments", in which case the reversal is treated as a revaluation increase. After this reversal, the amortization cost is adjusted in the following periods.

5.8. INVENTORIES

Inventories, which include mainly parcels of land, are recognized at the lower amount between their net acquisition cost and their net realizable value.

5.9. RECEIVARIES

These assets are generally valued using the amortized cost, calculated according to the effective interest rate method, deducting, if applicable, the provisions for losses due to noted impairment in value.

For receivables with a maturity exceeding one year and where the parties have not expressly agreed on the applicable interest, the receivables are discounted by taking the current market interest rate for public debt securities with the same or similar maturity as the receivables as the implicit financial interest, without prejudice to taking into account the relevant risk premium.

When there is objective evidence that a loss was incurred due to impairment, the corresponding provision is constituted for the amount estimated not to be recoverable. This amount is equivalent to the difference between the book value of the asset and the current value of the future cash flows, discounted at the original effective interest rate of the financial asset, and the loss is recognized on the year's consolidated income statement.

The impairment loss corresponding to premiums pending collection is calculated separately for each line or risk, is presented in the consolidated income statement as a lower amount of written premiums, and consists of the part of the insurance premium accrued in the period which, based on past experience, is unlikely to be collected, taking into account the impact of reinsurance.

The English version is a translation of the original in information purposes only. In case of discrepancy, the Spanish version shall prevail.

The impairment is recognized in the consolidated income statement as an overall amount according to the age of the premiums pending collection, or on an individual basis where dictated by the circumstances and status of receivables.

Receivables for claim recoveries are only capitalized when their realization is considered as certain.

5.10. CASH

Cash consists of cash (cash in hand and bank deposits) and cash equivalents, which correspond to highly liquid short-term investments (maximum three months) that can be easily converted into fixed amounts of cash and are subject to insignificant risk of change in value.

5.11. ACCRUAL ADJUSTMENTS

Under this heading of the asset, what are basically included are commissions and other acquisition expenses corresponding to the accrued premiums that can be allocated to the period between the close date and the end of coverage of the contracts. The expenses are allocated to the results actually incurred in the period in accordance with the limit stipulated in the technical conditions.

At the same time, under this liability heading, commissions and other acquisition expenses for the ceded reinsurance that have to be allocated to the year or following years in accordance with the coverage period of the ceded policies are included.

5.12. NON-CURRENT ASSETS HELD FOR SALE AND ASSOCIATED LIABILITIES

These are generally valued, if applicable, at the lower amount between their book value and fair value, deducting sale costs. These costs are understood as marginal costs directly attributable to the disposal, excluding, if applicable, financial costs and tax on profit expenses.

Non-current assets classified as held-for-sale are not amortized and losses due to the impairment of their book value are recognized on the consolidated income statement. Likewise, if a recovery of the value occurs this is recognized on the consolidated income statement up to an amount equal to the impairment loss previously recognized.

5.13. TREASURY STOCK

Treasury stock is measured at cost of acquisition and recognized in equity. Expenses incurred in acquisition are recognized in equity as a decrease in the value of reserves.

All transactions performed with treasury stock are recognized in equity as a change in the value of shareholders' equity.

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

5.14. FINANCIAL LIABILITIES AND SUBORDINATED LIABILITIES

Financial liabilities classified as held-for-trading

In their initial recognition, these are recorded at the gross amount received, allocating transaction costs directly to results. Subsequently, they are recorded at fair value, allocating changes to the income statement.

Other financial liabilities

In their initial recognition on the balance sheet, they are recorded at fair value, which is the net amount received, deducting transaction costs which are directly attributed to the financial liability, like commissions, formalization costs, taxes, fees, etc... Subsequently, these liabilities are measured at their amortized cost, applying the effective interest rate for financial liabilities.

5.15. INSURANCE OPERATIONS

A) PREMIUMS

Direct insurance

Premiums from the Non-Life business and Life annual renewable contracts are recognized as revenues throughout the validity of the contracts, in accordance with the period of time elapsed, and accrued by means of the allowance to the provision for unearned premiums.

Premiums from the long-term Life business, whether single premiums or regular premiums, are recognized when the right to collection by the contract issuer arises.

Ceded reinsurance

These are recorded in accordance with underwritten reinsurance contracts and under the same criteria as those used for direct insurance.

Accepted and retroceded reinsurance

These are posted based on the accounts received from the ceding companies and additionally, in retroceded reinsurance operations, signed retrocession contracts are considered.

Co-insurance

These are recorded in line with the accounts received from the opening company and the participation in contracts underwritten.

B) TECHNICAL PROVISIONS

The main assumptions and methods used to establish the provisions are described below.

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

a) Direct insurance of companies belonging to the European Economic Area

Provision for unearned premiums

This is calculated on a policy-by-policy basis and reflects the insurance premium accrued during the period subject to allocation to future periods, less the security surcharge.

Provision for unexpired risks

This is calculated on an individual business line basis and supplements the provision for unearned premiums for the amount in which this provision does not sufficiently reflect the valuation of risks and expenses to be covered, corresponding to the coverage period not elapsed at the closing date.

For the Automobile line, this provision has been calculated taking into account all the guarantees covered with the products marketed by the different companies.

Provisions for Life insurance

• In Life insurance policies with a coverage period equal to or less than one year, the provision for unearned premiums is calculated on a policy-by-policy basis and reflects the insurance premium accrued in the period subject to allocation to future periods.

When this provision is not sufficient, the provision for unexpired risks is calculated to cover the valuation of risks and expenses to be covered, corresponding to the coverage period not elapsed at the closing date for the financial year.

· In Life insurance policies with a coverage period exceeding one year, the mathematical provision has been calculated on a policy-by-policy basis as the difference between the current actuarial value of the future obligations of the controlled companies operating in this line, and those of the policyholder or insured person. The calculation basis is the inventory premium accrued in the period, represented by the pure premium plus the surcharge for administration expenses, both determined using the best estimates for mortality, illness, investment yields and administration expenses when the contracts are issued, as specified in the technical conditions of the relevant products and types and remaining unchanged throughout the life of the contract unless their inadequacy becomes evident, in which case the calculation of the mathematical provision would be changed.

Written policies that contain a profit sharing clause in force at the close of each period share, pro rata to their mathematical provisions or technical results and as specifically laid down in each contract, in the net yields obtained from the investments allocated to covering these provisions. The amount resulting from this profit sharing is recorded as a greater amount than the technical provisions.

• This consolidated balance sheet heading also includes the provision for profit sharing and for premium returns, which includes the amount of profits accrued in favor of policyholders, insured persons or beneficiaries and the premiums that must be reimbursed to policyholders or insured persons.

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

Provision for outstanding claims

This represents the estimated appraisals of the pending liabilities arising from the claims occurring prior to the close of the period, less any advance payments already made. It includes the appraisals of claims pending settlement or payment and pending reporting, as well as the internal and external expenses involved in the settlement of claims; in the Life insurance business, it also includes maturities and redemptions payment. The calculations take into account any additional provisions for deviations in the appraisals of long-tail claims.

Other technical provisions

The most significant provision included under this heading is the "Funeral Insurance Provision", which is calculated on a policy-by-policy basis as the difference between the current actuarial value of future obligations of the controlled companies operating in this line and those of the policyholder or insured person.

For certain portfolios, the Funeral insurance provision is calculated using methods based on Group capitalization, with a financial-actuarial restatement being made of projected flows of premiums and expected claims up to the expiration of the collective insurance.

Technical provisions for Life insurance where policyholders bear the investment risk

The provisions for Life insurance where the contract stipulates that the investment risk will be fully borne by the policyholder have been calculated on a policy-by-policy basis and are measured according to the assets specifically allocated to determine the value of the rights.

b) Direct insurance of companies outside the European Economic Area

Technical provisions are calculated in line with the local criteria in force in each country, except in the cases when their application could distort the true and fair image that must be shown in the financial statements, in which case they are adapted to the controlling company's criteria.

Life insurance provisions have been calculated in line with the operating assumptions, mortality tables and technical interest rate commonly used in the industry in the respective countries.

Ceded reinsurance c)

Technical provisions for cessions to reinsurers are shown in the balance sheet assets and are calculated according to the written reinsurance agreements and under the same criteria as those used for direct insurance.

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

d) Accepted reinsurance

Provision for unearned premiums

Reinsurance operations are recorded based on the accounts received from the ceding companies and the provision for unearned premiums is estimated by provisioning the recorded unearned premium according to the average period of policy coverage.

The acquisition expenses communicated by the ceding companies are accrued and included in the consolidated balance sheet under the heading "Accrual adjustment" of the asset, with these expenses corresponding to those actually incurred in the period. When the cedants do not communicate the acquisition expense amounts, they are accrued risk by risk for the facultative proportional reinsurance and globally for the rest of the proportional business.

Provision for unexpired risks

This is calculated on an individual business line basis and supplements the provision for unearned premiums for the amount in which this provision does not sufficiently reflect the valuation of risks and expenses to be covered corresponding to the coverage period not elapsed at the closing date.

Provision for outstanding claims

Provisions for outstanding claims are provided for the amounts communicated by the cedant or, in the lack thereof, for the withheld deposits, and include, where necessary based on available historic information, additional provisions for claims that were incurred but not reported (IBNR) as well as for deviations of the existing ones based on own experience. The final expected cost is estimated and provisioned based on experience and through the use of actuarial methods.

e) Retroceded reinsurance

Retroceded reinsurance operations and their corresponding technical provisions are recorded using the same criteria as those used for accepted reinsurance and according to the signed retrocession contracts.

్స్ Liability adequacy test

The recorded technical provisions are usually subject to a reasonability test for the purpose of determining their adequacy on the basis of projections of all future cash flows of current contracts, taking into account the temporary value of the money and using assumptions (economic, biometric, etc.), in line with the experience of each company. If the result of this test indicates the inadequacy of the provisions, they are adjusted and charged to the results for the period.

Shadow accounting g)

In order to mitigate the accounting asymmetries arising from applying different valuation methods for assets and liabilities, and to reflect the effect of profit sharing of the insured persons, EU-IFRS allow "shadow accounting", which means that losses or gains in the allocated assets are recognized when measuring technical provisions, up to the limit of the amounts assumed by the policyholder.

The English version is a translation of the original in Spanish for information purposes only. In Spanish version shall prevail

Código seguro de verificación (CSV): xIvfjCSHJswnKZUFv5fe	COPIA ELECTRONICA
Esta es una copia auténtica imprimble de un documento electrónico archivado por la CMMV, según el artículo 27.3 c) de la Ley 39/2015, de 2 de octubre. Su autenticidad puede ser contrastada a través de la siguiente dirección: https://sede.cnmv.libreAcceso/CSV.aspx

C) OTHER ASSETS AND LIABILITIES DERIVED FROM INSURANCE AND REINSURANCE CONTRACTS

a) Deposit components in insurance contracts

Some Life insurance contracts contain both an insurance component and a deposit component. The two components are not measured separately because all the rights and obligations arising from the deposit component are recognized.

b) Embedded derivatives in insurance contracts

Some Life insurance contracts contain embedded derivatives, essentially consisting of guaranteed redemption values and maturity values. Embedded derivatives are not measured separately from the main insurance contract because they fulfill the conditions to be classified as insurance contracts, and their embedded value is therefore measured jointly with the main contract, pursuant to EU-IFRS এ.

c) Insurance contracts acquired in business combinations or portfolio transfers

Insurance contracts acquired in business combinations or portfolio transfers are recognized on the balance sheet as follows:

C.1) The liabilities arising from the insurance contracts are recorded pursuant to EU-IFRS 4.
C.2) An intangible asset is recorded, representing the difference between:
- The fair value of the rights acquired and all the other assumed contractual obligations, and
- The amount described in Section C.1) above.

This intangible asset is amortized in accordance with the policies in force at the time of the purchase and the future generation of profits from them.

D) Claims

The estimated cost of claims, both from the Life and Non-Life business, is recognized on the date of their occurrence and includes all necessary expenses to be incurred up to the settlement of the claim.

The best estimate of the cost of IBNR claims [incurred but not reported] prior to the end of each financial period, based on past experience, are reported through the incurred but not reported claims provision (IBNR).

Payments of claims are made against the previously recognized provision.

Claims corresponding to accepted reinsurance are recorded in line with the accounts received from the ceding companies, estimating the final expected cost. In the case of ceded and retroceded reinsurance, they

The English version is a translation of the original in Spanish for information purposes only. In Spanish version shall prevail.

Código seguro de verificación (CSV): xIvfjCSHJswnKZUFv5fe	COPIA ELECTRONICA
Esta es una copia auténtica imprimible de un doumento electrónico archivado por la crículo 27.3 c) de la Ley 39/2015, de 2 de octubre. Su autenticidad puede ser contrastada a través de la siguiente dirección: https://sede.cnmv/LibreAccess/CSV.aspx

are recorded according to the underwritten reinsurance contracts and under the same criteria used for the direct insurance and accepted reinsurance, respectively.

E) MOST SIGNIFICANT ASSUMPTIONS AND OTHER SOURCES FOR ESTIMATING UNCERTAINTIES

For assets, liabilities, revenues and expenses related to insurance contracts, as a general rule, the assumptions used are those that were made when issuing these contracts, as specified in the technical conditions.

In general, the estimates and assumptions used are reviewed regularly and are based on past experience and other factors that might have been deemed more reasonable. If these reviews lead to changes in estimates in a given period, their effect shall be applied during that period and, as the case may be, in subsequent periods.

The main assumption is based on the behavior and development of the claims, using their frequency and costs in recent years. Likewise, estimates and assumptions about interest rates and foreign currency exchange, delays in paying claims and any other external factor that could affect the estimates are taken into account.

For liabilities, assumptions are based on the best possible estimate when issuing the contracts, and if an insufficiency became evident, the provisions required to cover it would be constituted.

F) IMPAIRMENT

When there is objective evidence that a loss was incurred due to impairment of the assets derived from insurance and reinsurance contracts, the general valuation criterion indicated in Note 5.9. Receivables is applied.

5.16. PROVISIONS FOR RISKS AND EXPENSES

These are recognized when there is a current obligation (whether legal or implicit) as a result of a past event and a reliable estimate of the obligation amount can be made.

If it is highly likely that part or all of a provision will be reimbursement is recognized as a separate asset.

5.17. DEBT

Valuations are generally carried out at the amortized cost using the effective interest rate method.

For debts with a maturity exceeding one year and when the parties have not expressly agreed on the applicable interest, they are discounted by taking the interest in the market for public debt securities with the same or similar term as the maturity of the debts as the implicit financial interest, without prejudice to taking into account the relevant risk premium.

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

Código seguro de verificación (CSV): xIvfjCSHJswnKZUFv5fe	COPIA ELECTRONICA
Esta es una copia auténtica imprimible de un doumento electrónico archivado por la crículo 27.3 c) de la Ley 39/2015, de 2 de octubre. Su
autenticidad puede ser contrastada a través de la siguiente dirección: https://sede.cnmv/LibreAccess/CSV.aspx

5.18. GENERAL CRITERION FOR REVENUES AND EXPENSES

Recognition of revenue from non-insurance activities is made when the promised goods or services are transferred to a customer, in line with the contract between them, considering that a good or service has been transferred when the client obtains control of it (be it over a period of time or in a specific moment). The amount recognized corresponds to the amount of the consideration the company is entitled to for the transfer of the goods or services.

5.19 REMUNERATION FOR EMPLOYEES

Remuneration for employees may be short-term, post-employment benefits, compensation for termination, other medium and long-term remuneration, and share-based payments.

a) Short-term remuneration

These are posted according to the services provided by employees on an accrual basis.

b) Post-employment benefits

These consist of defined contribution plans and defined benefit plans, as well as life insurance covering death between the ages of 65 and 77.

Defined contribution plans

These are plans in which the company in question makes pre-determined contributions to a separate company (whether linked to the Group or external) and has no legal or implicit obligation to make any additional contributions in the event of an insufficiency of assets to honor the payment of benefits. The amount of benefits to be received by employees is determined by the contributions made plus the yield obtained by the investments in which the fund was materialized.

Defined benefit plans

These are plans in which the benefits to be received by employees at the moment of their retirement, are normally set according to factors like remuneration.

The liability recognized on the balance sheet for defined benefit pension plans is equal to the current value of the obligation for benefits defined on the balance sheet date less, where applicable, the fair value of the assets set aside for the plan.

The obligation for defined benefits is determined separately for each plan using the actuarial valuation method of the projected credit unit.

Actuarial gains and losses are recorded in equity accounts.

COPIA ELECTRÓNICA

c) Compensation for termination

This is recognized as a liability and expense when there is evidence of an agreement to rescind the work relationship before the normal date of employee retirement or when there is an offer to encourage voluntary rescission of the contracts.

d) Other medium and long-term remuneration and share-based payments

Other long-term remunerations bescribed in the preceding paragraphs and referring specifically to the reward for years of service or time with the company, are recorded in line with the aforementioned principles. The only exceptions are the cost of past services, which is recognized immediately and recorded as an offsetting entry under the heading "Provisions for risks and expenses", and actuarial gains and losses which are recorded on the consolidated income statement.

Incentive plans

In 2019 a medium-term incentive plan was approved for certain members of the MAPFRE executive team. The plan is extraordinary, non-cumulative and multi-year, commencing January 1, 2019 and ending March 31, 2022, with payment of part of the incentives deferred to the period 2023-2025. The payment of incentives is dependent on fulfilling certain corporate and individual objectives, as well as remaining in the Group's employment. The incentives will be paid partly in cash (50 percent) and partly in MAPFRE S.A. shares (50 percent), and payment is subject to malus or clawback clauses.

At the close of each year, the fulfillment of objectives are evaluated and the amount accrued in the consolidated income statement under a liability heading for the remuneration paid in cash and under an equity heading for the part corresponding to equity instruments. The valuation of the part of the incentive paid in MAPFRE S.A. shares takes into account the equity instruments assigned at the transfer date, based on the terms and conditions of the plan.

Each year, until the vesting date, the number of equity instruments included in the calculation of the transaction amount is adjusted. No additional adjustments are made after the vesting date.

In 2019, the previous medium-term incentive plan approved in 2016 was partially liquidated, with the part of the payment deferred to the 2020-2022 period pending.

5.20. REVENUES AND EXPENSES FROM INVESTMENTS

These are classified in line with the designation of the investments they come from; as operating expenses if they are assigned to cover technical provisions, or as equity if they are related to the materialization of shareholders' equity.

Changes in fair value are recorded according to the portfolio in which financial investments are classified:

a) Trading portfolio

Recorded directly in the consolidated income statement distinguishing between the part attributable to yields, which are recognized as interest or, if applicable, as dividends, and the part that is recorded as realized and unrealized results.

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

b) Held-to-maturity portfolio

Recorded when the financial instrument is disposed of and in case of impairment.

Available-for-sale portfolio c)

Recognized directly in the company's equity until it is written off or impairment occurs, at which time they are recorded in the consolidated income statement.

In all cases, the interest of financial instruments is recorded on the consolidated income statement by applying the effective interest rate method.

5.21. RECLASSIFICATION OF EXPENSES BY DESTINATION AND ALLOCATION TO ACTIVITY SEGMENTS

The criteria to follow for reclassifying expenses by destination are mainly based on the position held by each of the employees, distributing their direct and indirect cost according to this position.

For expenses directly or indirectly related to personnel, individual studies are undertaken, allocating them to the destination according to the position held for these expenses.

The established destinations are as follows:

Claims-related expenses ණ
Expenses allocated to investments 8
Other technical expenses �
Other non-technical expenses
Acquisition expenses @
அ Administration expenses
� Operating expenses from other activities

Expenses have been allocated to the different segments, according to the Business Unit or Regional Area in which the activity originated:

5.22. TRANSACTIONS AND BALANCES IN FOREIGN CURRENCY

With the exception of reinsurance activities, transactions in foreign currencies are translated into each Group company's functional currency at the exchange rate in force on the transaction date.

Reinsurance operations in foreign currency are recorded at the exchange rate established at the beginning of each quarter of the year. Subsequently, at the end of each quarter, they are all treated as one operation, being converted at the exchange rate in force at the time and recording the resulting difference on the consolidated income statement.

The English version is a translation of the original in information purposes only. In case of discrepancy, the Spanish version shall prevail.

Código seguro de verificación (CSV): xIvfjCSHJswnKZUFv5fe	COPIA ELECTRONICA
Esta es una copia auténica imprimible de un documento por la CNMV, según el atículo 27.3 c) de la Ley 39/2015, de 2 de octubre. Su
autenticidad puede ser contrastada a través de la siguiente dirección: https://sede.mnv/LibreAcceso/CSV.aspx

At year end, the existing balances in foreign currencies are translated at the exchange rate of the functional currency prevailing on that date, and all exchange differences are recorded in the consolidated income statement, the only exception being those which are directly allocated to "Foreign exchange conversion differences", i.e. those arising from the monetary items that form part of the net investment in a foreign operation and from the non-monetary ones measured at fair value, where changes in value are directly recognized in equity.

5.23. TAX ON PROFITS

Tax on profits is treated as an expense in the year and is recorded as such in the consolidated income statement, including both the tax charge for the current tax and the effect corresponding to the movement in deferred tax.

In order to determine this, the balance sheet method is followed, whereby the corresponding assets and deferred tax liabilities necessary to correct the effect of temporary differences are recorded. These are differences that may exist between the book amount of an asset or liability and its valuation for tax purposes.

Temporary differences may be "Taxable temporary differences", which result in higher tax payments in the future and which generally entail the recognition of a deferred tax liability; or "Deductible temporary differences", which result in lower tax payments in the future and, to the extent in which it is returnable, the registration of a deferred tax asset.

Meanwhile, tax on profits related to items where modifications in their value are directly recognized in equity is not allocated to the consolidated income statement but to equity, and the changes in value are recorded net of the tax effect.

a) Recognition of deferred tax liabilities

The Group recognizes deferred tax liabilities in all cases except those in which:

· They arise from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business combination and that does not affect the accounting result or the taxable income on the date of the transaction.
· They correspond to differences relating to investments in controlled, associated or joint arrangement companies over which the Group controls the moment of reversal and it is not probable that a reversal occurs in the foreseeable future.

b) Recognition of deferred tax assets

The Group recognizes deferred tax assets as long as:

• It is probable that there are sufficient future taxable profits to offset them. However, those assets that arise from the initial recognition of assets or liabilities in a transaction that is not a business combination and that does not affect the accounting result or the taxable income on the date of the transaction are not recognized.

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

· They correspond to temporary differences relating to investments in controlled, associated or joint arrangement companies to the extent that the temporary differences revert in the foreseeable future and positive future taxable profits are expected to be generated to offset the differences.

c) Compensation and classification

The Group only offsets assets and liabilities from tax on profits if there is a legal right to do so according to the tax authorities and it intends to liquidate debts coming from its net value or realize assets and liquidate debts simultaneously.

d) Deferred tax asset and liability valuation

The deferred tax assets and liabilities are valued by the tax rates applicable in the period in which assets are expected to be realized or liabilities paid.

The Group reviews the book value of the deferred tax assets and liabilities at the close of the period, and evaluates if conditions are fulfilled for recognizing deferred tax assets that had not previously been recognized.

The English version is a translation of the original in Spanish for information purposes only. In espanish version shall prevail.

6. BREAKDOWN OF FINANCIAL STATEMENTS

6.1. INTANGIBLE ASSETS

The following tables show the movements under this heading in the last two years:

2019

Item	Opening balance	Adjustments to the opening balance	Changes to the scope	Additions or provisions	Disposals, cancellations or reductions	Closing balance

COST
GOODWILL	1,951.37	20.53	132.32	ﯩﺴ	(1.71)	2,102.51
OTHER INTANGIBLE FIXED ASSETS
Portfolio acquisition expenses	1,346.33	(10.81)	71.42		-	1,406.94
Software	1,141.81	(0.50)		123.30	(11.51)	1,253.10
Other	134.64	(0.39)	6.80	123.41	(20.62)	243.84
TOTAL COST	4,574.15	8.83	210.54	246.71	(33.84)	5,006.39
CUMULATIVE AMORTIZATION
OTHER INTANGIBLE FIXED ASSETS

Portfolio acquisition expenses	(487.56)	4.29		(75.98)	ﺴﺘﺸﺎ	(559.25)
Software	(701.96)	5.44		(75.26)	6.28	(765.50)
Other	(39.35)	(0.33)		(2.03)	0.05	(41.66)
TOTAL CUMULATIVE AMORTIZATION	(1,228.87)	9.40	-	(153.27)	6.33	(1,366.41)
IMPAIRMENT
GOODWILL	(262.34)	(3.05)	---	(65.62)	1.71	(329.30)
OTHER INTANGIBLE ASSETS
Portfolio acquisition expenses	(10.41)	ﺴ		-	---	(10.41)
Software	(0.12)	ﺪ ﺳﻌ				(0.12)
Other	(0.05)	ﺴﻪ ﺳﻪ	-		-	(0.05)
TOTAL IMPAIRMENT	(272.92)	(3.05)	-	(65.62)	1.71	(339.88)
TOTAL GOODWILL	1,689.03	17.48	132.32	(65.62)	--	1,773.21
TOTAL OTHER INTANGIBLE ASSETS	1,383.33	(2.30)	78.22	93.44	(25.80)	1,526.89
TOTAL INTANGIBLE ASSETS	3,072.36	15.18	210.54	27.82	(25.80)	3,300.10

Figures in millions of euros

The amounts shown as changes in 2019 are the result of shareholding acquisitions in the companies: Caja Granada Vida, Compañía de Seguros y Reaseguros, S.A. (hereinafter CAJA GRANADA VIDA), CajaMurcia Vida y Pensiones de Seguros y Reaseguros, S.A. (hereinafter CAJAMURCIA VIDA), and Santander Global de Seguros y Reaseguros, S.A. (hereinafter SANTANDER GLOBAL) (Note 6.24).

The main additions in Other intangible assets correspond to:

· the fixed commission that was paid upon novation in January 2019 of the agency contract for an undefined duration for the exclusive distribution of Non-Life insurance in the whole of the BMN network belonging to Bankia, for the amount of 51.40 million euros.
The payment of 24.84 million euros for the exclusivity agreement, for an undefined time period, for sale of all MAPFRE Mexico insurance products in the Actinver channel.

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

tem	Opening balance	Adjustments to the opening balance	Changes to the scope	Additions or provisions	Disposals, cancellations or reductions	Closing balance

COST
GOODWILL	2,024.91	10.36	(22.02)	ﺳﮯ ﺳﮯ ﺳﮯ ﺳﮯ ﺳﮯ ﺳﮯ ﺳﮯ ﺳﮯ ﺳﺎﺗﮫ ﺍﺱ ﮐﮯ ﺳﺎﺗﮫ ﺍﺱ ﮐﮯ ﺳﺎﺗﮫ ﺍﺱ ﮐﮯ ﺳﺎﺗﮫ ﺍﺱ ﮐﮯ ﺳﺎﺗﮫ ﺍﺱ ﮐﮯ ﺳﺎﺗﮫ ﺍﺱ ﮐﮯ ﺳﺎﺗﮫ ﺍﺱ ﮐﮯ ﺳﺎﺗﮫ ﺍﺱ ﮐﮯ ﺳﺎﺗﮫ ﺍﺱ ﮐﮯ ﺳﺎﺗﮫ ﺍﺱ ﮐﮯ ﺳﺎﺗﮫ ﺍﺱ ﮐﮯ ﺳﺎﺗﮫ ﺍﺳﺘﻌﻤﺎﻝ ﮐﮯ ﺷﮩﺮ ﺍﻧﺴﭩﯿﺸﻦ	(61.88)	1,951.37
OTHER INTANGIBLE FIXED ASSETS

Portfolio acquisition expenses	1,527.22	(107.61)	ﺴﻴﺴ	32.44	(105.72)	1,346.33
Software	1,075.33	(11.78)	(5.18)	101.25	(17.81)	1,141.81
Other	167.42	1.17	(37.24)	38.79	(35.50)	134.64
TOTAL COST	4,794.88	(107.86)	(64.44)	172.48	(220.91)	4,574.15

CUMULATIVE AMORTIZATION
OTHER INTANGIBLE FIXED ASSETS
Portfolio acquisition expenses	(506.38)	26.22		(70.10)	62.70	(487.56)
Software	(614.82)	8.15	4.32	(102.79)	3.18	(701.96)
Other	(50.92)	(0.59)	14.20	(2.06)	0.02	(39.35)

TOTAL. CUMULATIVE AMORTIZATION	(1,172.12)	33.78	18.52	(174.95)	65.90	(1,228.87)

IMPAIRMENT GOODWILL	(141.95)	2.18	ﮧ ﻣ	(173.45)	50.88	(262.34)
OTHER INTANGIBLE ASSETS
Portfolio acquisition expenses	(57.75)	3.28			44.06	(10.41)
Software	(0.11)	(0.01)		ww		(0.12)
Other	(0.05)		-	--		(0.05)

TOTAL IMPAIRMENT	(199.86)	5.45	-	(173.45)	94.94	(272.92)
TOTAL GOODWILL	1,882.96	12.54	(22.02)	(173.45)	(11.00)	1,689.03
TOTAL OTHER INTANGIBLE ASSETS	1,539.94	(81.17)	(23.90)	(2.47)	(49.07)	1,383,33
TOTAL INTANGIBLE ASSETS	3,422.90	(68.63)	(45.92)	(175.92)	(60.07)	3,072.36

2018

Figures in millions of euros

The amounts shown as changes in 2018 were primarily the result of the reclassification to the caption "Non-current assets held for sale" of assets from funeral service businesses in Spain (Note 6.9.)

Portfolio acquisition expense entries in 2018 come from final price allocation for the acquisition of the business combinations carried out in 2017.

The main disposals in 2018 primarily came from the cancellation of totally amortized and/or deteriorated assets on the balance sheet.

Intangible assets with an indefinite useful life

The useful life of the following intangible assets is considered indefinite since these assets are expected to contribute to future revenues for the Group indefinitely:

The English version is a translation of the original in information purposes only. In case of discrepancy, the Spanish version shall prevail.

item		Book value
	12/31/19	12/31/18
Goodwill on consolidation	1,763.17	1,679.00
Goodwill on merger	10.04	10.03
Other intangible assets	76.24

Figures in millions of euros

The following tables provide detailed information on the cash-generating units to which the different goodwill items and portfolio acquisition expenses are allocated, as well as their book value and, if applicable, the impairment amount and amortization over the last two periods.

Goodwill

	Business and Geographic	Gross amount at source		Initial	2018		Initial 2019			Initial
Cash-generating unit	Area	M illions in original currency	Currency	12.31.2017	Entries/(write- offs)	Net impairment for the period	12.31.2018	Entries/(write- off8)	Net lmpairment for the period	12.31.2019

Goodwill on consolidation
MAPFRE VIDA	Life Insurance (Spain)	268.40	EUR	22.57			2257			2257
MAPFRE GLOBAL RISKS	Insurance for Companies	40.75	EUR	40.17			40.17			40.17
GRUPO CORPORATIVO L.M.I.	Non-Life Insurance (Mexico )	407.93	mxn	17.29	0 83		8.2	111		19.23
BREELL FINANCIAL SERVICES	Travel assistance (USA)	18.58	വടന	15 46	0.73		6.8	0.38	(18.68)
MAPFREWARRANTY	Extended Warranty	1140	EUR	1108			1108			1108
BB MAPFRE	Non-Life Insurance (Brazil)	350 29	BRL	88.10	(9 33)		7877	(117)		77.80
ABRAXAS	Travel assistance (United Kingdom)	128	GBP	0.68	(0.6)		2.53	0.27	(12.80)
GENEL SIGORTA	Insurance (Turkey)	156.83	TRY	34.45	(8.62)		25.83	(2.33)		23.50
BANKINTER VIDA	Life Insurance (Spain)	130.45	EUR	160,45			BO 45			100.45
CCM VIDA Y PENSIONES	Life and Pensions Insurance (Spain)	90.51	EUR	8134			8134			8134
MAPFREUSA	Non-Life Insurance (USA)	882.40	USD	735.23	3132	(29.64)	636.81	13.74		850.65
ASEGURADORA MUNDIAL	Insurance (Central America)	8 38	PAB	7.50	0 34		7 84	0.17		8.01
INSURANCE AND GO	Insurance (United Kingdom)	30.72	GBP	35,37	(0.38)		34.98	0.63	(35.62)
CENTURY AUTOMOTIVE	Insurance and reinsurance (USA)	30.35	USD	20.72	0.97		2169	0.47		22.15
BANKINTER SEGUROS GENERALES	Non-Life Insurance (Spain)	2.72	EUR	12.46			12.46			2.46
BANKIA MAPFRE VIDA SOCIEDAD DE SEGUROS Y REASEGUROS SA.	Life insurance (Spain)	8.69	EUR	13 69		-	13.69			8.69
FUNESPAÑA	Funeral services (Spain)	17.88	EUR	17 88	(0.68)		17.20			17.20
VERTI VERSICHERUNG AG	Non-Life insurance (Germany)	125.47	EUR	25.47			25 47			25.47
VERTI ASSICURAZIONI S.P.A.	Non-Life Insurance (Italy)	10130	EUR	68.27		(2160)	46 67			46.67
ABDA	Insurance (Indonesia)	1384 263.79	OR	96.94	( 13.49)	(2221)	6124	3.96		65.20
Other				38.33	0.48		38.79	0.23	(0.62)	38.40

TOTAL GOODWILL ON CONSOLIDATION				1,850.45	2.00	(173.45)	1,879.00	149.79	(66.62)	1,763.17

Goodwill on merger
BANKINTER VIDA (branch in Portugal)	Life and Pensions Insurance	5.34	EUR	5 અ			5.34			5.34
GRUPO FUNESPAÑA	(Portugal) Funeral services (Spain)	4109	EUR	22 01	:22.0 时
Other				5,18	{0.47}		4 69	0 01		4.70

TOTAL GOODWILL ON MERGER				32.51	(22.48)		10.03	0.01		10.04
TOTAL GOODWILL				1,882.96	(20.48)	(173.45)	1,689.03	149.80	(65.62)	1.773.21

Goodwill in associated and multi- group undertakings
SALVADOR CAETANO AUTO (SGPS). S.A.	Services (Portugal)	1131	EUR	1131		-	1131			1131
ABDA	Insurance (Indonesia)	4.55	EUR					4.55		4.55
SOLUNION SEGUROS DE	Insurance (Spain)	2.87	EUR	2.87			12.87			0.87
CREDITO, SA
Otros				4.63	0.44		5.07	(031)		4.76
TOTAL GOODWILL IN ASSOCIATED AND MULTI-GROUP UNDERTAKINGS (EQUITY-ACCOUNTED) { }				28.81	0.44	--	29.25	4.24	-	33.49

(*) Goodwill related to acquisitions of associated and multi-group undertakings is included as the greater va vestments recorded by the equity method.

The English version is a translation of the original in information purposes only. In case of discrepancy, the Spanish version shall prevail.

Portfolio acquisition expenses �

		Gross amount at source		Intlal	2018		Initial	2019		Initial
Cash-generating unit	Business and Geographic Area	Millions in original ourrency	Currency	12.31.2017	Entries! write- offs)	Amonization and not impairment for the period	12.31.2018	Entries! (write- offs)	A mortization and net Impairment for the period	12.31.2019
BANKINTER VIDA BANKIA MAPFREVIDA SOCIEDAD DE SEGUROS Y REASEGUROS SA COM VDA Y PENSIONES MAPFREUSA BB MAPFRE GENEL SIGORTA MAPFREFINISTERRE VERTIVERSICHERLING AG ABDA Other	Life and Pensions insurance (Spain and Portugal) Life insurance (Spain) Life and Pensions insurance (Spain) Non-Life Insurance (USA) Life Insurance {Brazi} Insurance (Turkev) Non-Life Insurance (Spain) Non-Life insurance (Germany) Insurance (Indonesia) -	200 89 80 50 82.55 48.28 3,48142 95.40 87.94 23.52 481,941.46 +	EUR EUR EUR USD BRI TRY EUR EUR IDR	138.05 63.10 43.50 643.45 550 40.27 13.74 039	44 + (87 30) (132) -- 23.60 039	(10.12) (6.67) (4.03) ** (3181) (0.82) (2.53) (4.09) (7.82) (221)	27.93 56.43 39.47 12 544 34 3.45 37.74 14.65 6.78 8,57	- - t re (7,33) (0.28) - - 0.91 0.18	( 0.83) (8.10 (3.99) - (32.44) (0.59) (247) (3.28) (6.60) (2.30)	11780 50.32 35.48 504.57 2.58 35.27 1136 10.00 6.45
TOTAL PORTFOLIO ACQUISITION EXPENSES				983.09	(44.63)	(70.10)	848.36	\$4.90	(75.98)	837.28

The book value, net of any impairment, of each of the goodwill and portfolio acquisition expense items described above, and of the net assets associated with each cash-generating unit, is equal to or lower than the amount recoverable from the cash-generating unit to which they are allocated. The following table shows the recoverable value of the main cash-generating units at the close of the last two periods:

Cash-generating unit	Contrast value		Recoverable value
	2019	2018	2019	2018

MAPFRE VIDA	1,875.12	1,781.21	6,118.15	4,424.07
BB MAPFRE	230.55	251.14	1,442.47	850.11
BANKINTER VIDA (Spain)	260.42	270.84	754.85	584 39
CCM VIDA Y PENSIONES	147.90	143.81	254.27	193.74
MAPFRE USA	1,763.61	1.612.18	2,524.65	1,612.18
MAPFRE SIGORTA	143.26	149.80	145.03	158.07
VERTI ASSICURAZIONI S.P.A.	370.81	410.01	388.45	410.01
VERTI VERSICHERUNG AG	301.21	289.79	436.23	295.49
ABDA	119.19	117.52	120.00	117.52

Figures in millions of euros

The calculation of the recoverable value of the cash-generating units takes into account the degree of economic development of the country in which the units operate as well as the degree of development of the insurance industry, measured by its weight in the country gross domestic product, and other variables such as market share, projected performance of the commercial network, MAPFRE's past experience in the markets where the cash-generating units are present, etc.

The discount rate (ke) and perpetuity growth rate (g), as defined below, are also taken into account:

1) Discount rate (ke) = Risk-free rate of the country + (β * Risk premium of the equity market)
2) Perpetuity growth rate (g): calculated according the long-term inflation projection issued by the International Monetary Fund (IMF)

The English version is a translation of the original in Spanish for information purposes only. In espanish version shall prevail.

The country risk rate usually corresponds to the 10-year Treasury bonds in local currency issued in the country in which the cash-generating unit operates, increased by the risk premium of the equity market estimated for the insurance industry. The market risk premium for the insurance industry is calculated by modulating the generic premium for the equity market by the Beta ratio for listed insurance companies compared with the region in which the cash-generating unit operates.

The risk-free rate applied varied between 0.19 percent in 2019, and between 0.25 percent and 15.83 in 2018.

As a supplement for estimating the discount (ke) and perpetuity growth (g) rates applied to the different cash-generating units analyzed, the external projections of international organizations and other benchmark entities in the field of company ratings are used.

The following discount rates applied to the discounted cash flows were used to calculate the recoverable value of the main cash-generating units:

Cash-generating unit	After tax		Before tax
	2019	2018	2019	2018
MAPFRE USA	6,52%	8,10%	7.70%	9.55%
MAPFRE VIDA, BANKINTER VIDA (Spain) and CCM VIDA Y PENSIONES	5,44%	6,44%	6.89%	7.89%
BB MAPFRE	10,14%	13,60%	11.85%	15.86%
MAPFRE SIGORTA	16,90%	19,25%	18.97%	21.13%
VERTI ASSICURAZIONI S.P.A.	6,29%	6,95%	7.92%	8.33%
VERTI VERSICHERUNG AG	4,29%	5,05%	5.53%	5.69%
ABDA	10,74%	11,60%	12.97%	15.36%

The rates used to calculate the recoverable value of the cash-generating units are after taxes, as they are applied to cash flows that are also net of tax effects.

The estimated perpetuity growth rates (g) applicable to the different cash-generating units are based on the long-term inflation projections included in the World Economic Outlook Database published by the International Monetary Fund. Said long-term inflation projections and the perpetuity growth rates set on them, for the markets in which the main cash-generating units operate, are as follows:

Country		Long-term inflation forecast	Perpetuity growth rate (g)
	2019	2018	2019	2018
Spain	1.77%	1.94%	1.77%	1.94%
United States	2.29%	2.12%	2.29%	2.12%
Turkey	11.00%	13.00%	11.50%	13.50%
Brazil	3.49%	3.97%	3.99%	4.47%
ltaly	1.50%	1.71%	1.50%	1.71%
Germany	2.13%	2.56%	2.13%	2.56%
Indonesia	2.98%	2.99%	3.48%	3.49%

The English version is a translation of the original in information purposes only. In case of discrepancy, the Spanish version shall prevail.

Meanwhile, at least once a year each Group company analyzes the assumptions used to estimate future cash flows and updates them pursuant to actual results and past experience. In general, the cash flow projections for the first five years consider growth rates based on past experience, while in subsequent years the residual value is calculated, establishing perpetual revenues based on the last period of the estimates, with a perpetuity growth rate calculated as described above. Exceptionally, in Brazil, Indonesia and Italy, a time horizon of longer than five years has been considered, in line with the duration of the agreements with Banco do Brasil in the case of the former, and with the businesses being recent acquisitions still in development in the cases of Indonesia and the reorganization from the Italy branch transformation plan.

The most relevant hypotheses used to determine cash flows from the main cash-generating units are as follows:

Cash-generating unit		Average net premium growth	Average net result growth		Average premium capital requirement ratio
	2019	2018	2019	2018	2019	2018

MAPFRE USA	0.22%	0.31%	13.37%	21.89%	15.02%	12.84%
MAPFRE VIDA	1.78%	(2.97%)	1.15%	(0.65%)	45.73%	39.63%
BANKINTER VIDA	3.50%	7.04%	3.95%	3.64%	21.74%	7.46%
COM VIDA Y PENSIONES	0.66%	2.41%	(0.27%)	0.23%	63.26%	28.06%
BB MAPFRE	10.82%	6.58%	11.18%	5.94%	10.81%	11.00%
MAPFRE SIGORTA	11.17%	15.58%	32.09%	17.07%	29.43%	27.07%
VERTI ASSICURAZIONI S.P.A.	2.56%	6.02%	20.45%	38.48%	45.71%	33.97%
VERTI VERSICHERUNG AG	6.07%	5.63%	8.12%	11.67%	31.28%	38.14%
ABDA	7.39%	12.69%	24.76%	20.19%	35.00%	22.06%

The ratios described above correspond to the average of the years comprising the time horizon of the projections (generally 5 years, with the indicated exceptions of BB MAPFRE, VERTI ASSICURAZIONI, and ABDA).

In the event of reasonable variations in any of the key assumptions, the book value is unlikely to be significantly higher than the recoverable value of the cash-generating units.

Specifically, the studies conducted for the main cash-generating units analyzed reveal the following sensitivity ranges in the event of unfavorable variations in the key assumptions:

· An increase of 1 percentage point in the discount rate applied to each cash-generating unit would imply reductions in the recoverable values of between 10.57 and 31.82 percent in 2019, and between 9.40 and 41.74 percent in 2018, which would only impact cash-generating units with a tighter margin, without the effect on any of those units being significant for the Group equity or financial situation.
· A decrease of 0.25 percentage points in the perpetuity growth rate applied to each cash-generating unit would imply reductions in the recoverable values of between 1.28 and 6.56 percent in 2019, and between 0.94 and 13.99 percent in 2018, which would not imply a relevant fall below the book value attributed to any of the units, and as such an impairment has not been provisioned.

If the analysis of the possible impairment of goodwill reveals a recoverable value below the book value, an individual study is conducted of all the key assumptions that have led to this situation, also taking into consideration the sensitivity ranges for calculating their impact.

The English version is a translation of the original in information purposes only. In case of discrepancy, the Spanish version shall prevail.

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The impairment loss recorded in 2019 from goodwill for de MAPFRE ABRAXAS, INSURE & GO y BRICKEL FINANCIAL SERVICES, for the total amount of 65.00 million euros, originates in the lower expectations of future profit in the assistance and travel insurance business in the United Kingdom, as a result of a complex socioeconomic environment and the foreseeable slow-down of the economy from uncertainty surrounding Brexit, as well as the reduction of unprofitable business in the United States and Canada.

The impairment loss recorded in 2018 for goodwill in MAPFRE USA, VERTI ITALY and ABDA, for the total amount of 173.45 million euros, originates in the update, carried out by the Group at the end of 2018, of the macroeconomic environment and other risk factors that could affect the insurance business in the future. As such, the low-interest rate environment in various regions that is creating lower financial income, pressure on emerging economies and their currencies, and the unusual frequency of catastrophic claims in recent years in multiple geographies, marked a change in predictive models, and were risk factors that can condition future results growth patterns. In this context, the Group updated the projections of results for the areas of business, with improvements in countries whose business model is well-grounded, and slightly moderating medium and long-term profit growth expectations in the countries with greater exposure to these risks. This update of projections led to the previously mentioned extraordinary goodwill writedown of direct insurance operations in the United States, Italy and Indonesia.

6.2. PROPERTY, PLANT AND EQUIPMENT AND REAL ESTATE INVESTMENTS

Property, plant and equipment

The following tables show the movements under this heading in the last two years:

2019

Item	Opening balance	Adjustments to the opening	Changes to the	Additions or	Disposals, cancellations or	Closing balance	Market value
		balance	scope	provisions	reductions

COST
REAL ESTATE FOR OWN USE
Land and natural resources	46.88	2.54	++	1.60	(16.79)	34.23	85.05
Buildings and other structures	1,035.52	0.14	-	17.56	(14.67)	1,038.55	1,144.99
Lease right of use
OTHER PROPERTY, PLANT AND EQUIPMENT
Vehicles	31.44	(0.09)	-	3.95	(3.46)	31.84	10.86
Furniture and fittings	470.12	(4.02)	ﺴﻴ	51.04	(20.65)	496.49	159.41
Other property, plant and equipment	262.76	1.41		16.56	(24.80)	255.93	87.21
Advances and fixed assets in progress	9.82	(0.25)		10.30	(13.28)	6.59	6.59
Lease right of use

TOTAL COST	1,856.54	(0.27)	ﺴﻌ	432.55	(93.66)	2,195.16	1,780.64

CUMULATIVE DEPRECIATION
REAL ESTATE FOR OWN USE	(218.34)	(0.77)	-	(62.45)	2.17	(279.39)
OTHER FIXED ASSETS	(512.42)	3.13	-	(57.95)	40.64	(526.60)

TOTAL CUMULATIVE DEPRECIATION	(730.76)	2.36	-	(120.40)	42.81	(805.99)	-

IMPAIRMENT
REAL ESTATE FOR OWN USE
Land and natural resources					-
Buildings and other structures	(11.40)	-	-	(2.11)	3.52	(8.99)
OTHER FIXED ASSETS
Vehicles			"
Furniture and fittings			--
Other property, plant and equipment	(2.04)	--		-	----	(2.04)

TOTAL IMPAIRMENT	(13.44)	-	-	(2.11)	3.52	(12.03)
TOTAL REAL ESTATE FOR OWN USE	852.66	1.91	-	282.84	(25.78)	1,111.63	1,515.13
TOTAL OTHER FIXED ASSETS	259.68	0.18	ﺳ	27.20	(21.55)	265.51	265.51
TOTAL PROPERTY, PLANT & EQUIPMENT	1,112.34	2.09	-	310.04	(47.33)	1,377.14	1,780.64

The main additions in 2019 come from the change in accounting policy regarding leases, explained in Notes 2.4, 5.4 and 6.3.

The English version is a translation of the original in information purposes only. In case of discrepancy, the Spanish version shall prevail.

2018

item	Opening balance	Adjustments to the opening	Changes to the scope	Additions or provisions	Disposals, cancellations or	Closing balance	Market value
		balance			reductions

ਟੋਨਈ REAL ESTATE FOR OWN USE
Land and natural resources	56.89	(10.57)	(0.23)	5.97	(5.18)	46.88	89.47
Buildings and other structures	1,095.17	(5.33)	(50.51)	18.89	(22.70)	1,035.52	1,143.52
Lease right of use
OTHER PROPERTY, PLANT AND EQUIPMENT
Vehicles	35.33	(1.22)	(5.36)	7.54	(4.85)	31.44	12.40
Furniture and fittings	469.94	(2.63)	(10.41)	40.63	(27.41)	470.12	169.97
Other property, plant and equipment	270.59	(8.21)	(0.19)	27.51	(26.94)	262.76	73.59
Advances and fixed assets in progress	7.85	(0.09)	(0.26)	24.16	(21.84)	9.82	9.82
Lease right of use

TOTAL COST	1,935.77	(28.05)	(66.96)	124.70	(108.92)	1,856.54	1,498.77

CUMULATIVE DEPRECIATION
REAL ESTATE FOR OWN USE	(213.97)	2.76	8.64	(19.66)	3.89	(218.34)
OTHER FIXED ASSETS	(510.01)	7.70	13.25	(60.11)	36.75	(512.42)

TOTAL CUMULATIVE DEPRECIA TION	(723.98)	10.46	21.89	(79.77)	40.64	(730.75)	-

IMPAIRMENT
REAL ESTATE FOR OWN USE
Land and natural resources					-
Buildings and other structures	(17.45)		0.18	(2.22)	8.09	(11.40)
OTHER FIXED ASSETS
Vehicles	0.21	(0.21)	-		t	-
Furniture and fittings	0.28	(0.28)	-	-	-
Other fixed assets	(3.10)	1.00	--	--	0.06	(2.04)

TOTAL IMPAIRMENT	(20.06)	0.51	0.18	(2.22)	8.15	(13.44)	-
TOTAL REAL ESTATE FOR OWN USE	920.64	(13.14)	(41.92)	2.98	(15.90)	852.66	1,232.99
TOTAL OTHER FIXED ASSETS	271.09	(3.94)	(2.97)	39.73	(44.23)	259.68	265.78
TOTAL PROPERTY, PLANT & EQUIPMENT	1,191.73	(17.08)	(44.89)	42.71	(50.13)	1,112.34	1,498.77

as in millions of euros

The amounts shown as changes in 2018 are primarily the result of the reclassification to the caption "Non-current assets held for sale" of assets from funeral service businesses in Spain (Note 6.9).

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

Real estate investment

The following tables show the movements under this heading in the last two years:

2019

ftern	Opening balance	Adjustments to the opening balance	Changes to the scope	Additions or provisions	Disposals, cancellations or reductions	Closing balance	Market value

COST
INVESTMENT IN REAL ESTATE
Land and natural resources	597.19	0.60	----	0.03	(79.62)	518.20	363.25
Buildings and other structures	1,176.65	4.75	reer	182.34	(20.79)	1,342.95	1,424.14

TOTAL COST	1,773.84	5.35	-	182.37	(100.41)	1,861.15	1,787.39

CUMULATIVE DEPRECIATION
INVESTMENT IN REAL ESTATE	(281.71)	(0.14)	***	(18.55)	5.30	(295,10)

TOTAL CUMULATIVE DEPRECIATION	(281.71)	(0.14)	m	(18.55)	5.30	(295.10)	-

IMPAIRMENT
INVESTMENT IN REAL ESTATE
Land and natural resources	(203.17)	(0.01)	ﻟﺴﺒﺐ	(1.81)	7.99	(197.00)	4
Buildings and other structures	(45.36)	(0.22)	-	(2.55)	2.43	(45.70)

TOTAL IMPAIRMENT	(248.53)	(0.23)	ﺴ	(4.36)	10.42	(242.70)
TOTAL REAL ESTATE INVESTMENT	1,243.60	4.98	-	159.46	(84.69)	1,323.35	1,787.39

The main additions in 2019 correspond to real estate acquired by the real estate investment fund Stable Income European Real Estate Fund in the course of its regular course of activity.

2018

ltem	Opening balance	Adjustments to the opening balance	Changes to the scope	Additions or provisions	Disposals, cancellations or reductions	Closing balance	Market value

COST
INVESTMENT IN REAL ESTATE
Land and natural resources	616.57	(5.31)	-	0.39	(14.46)	597.19	442.16
Buildings and other structures	1,167.48	7.24	--	25.18	(23.25)	1,176.65	1,242.13

TOTAL COST	1,784.05	1.93	-	25.57	(37.71)	1,773.84	1,684.29

CUMULATIVE DEPRECIATION
INVESTMENT IN REAL ESTATE	(266.08)	(0.15)	***	(19.47)	3.99	(281.71)

TOTAL CUMULATIVE DEPRECIATION	(266.08)	(0.15)	-	(19.47)	3.99	(281.71)	-

IMPAIRMENT
INVESTMENT IN REAL ESTATE
Land and natural resources	(218.76)	-	1	(6.80)	22.39	(203.17)
Buildings and other structures	(48.50)	(0.04)	--	(4.98)	8.16	(45.36)	-

TOTAL IMPAIRMENT	(267.26)	(0.04)	-	(11.78)	30.55	(248.53)
TOTAL REAL ESTATE INVESTMENT	1,250.71	1.74	-	(5.68)	(3.17)	1,243.60	1,684.29

Figures in millions of euros

The main disposals in 2019 correspond to the sale of a building in Santiago de Chile, for a sale price of 57.85 million euros and a profit, net of taxes, of 24.70 million euros.

The English version is a translation of the original in information purposes only. In case of discrepancy, the Spanish version shall prevail.

Código seguro de verificación (CSV): xlvfjCSHJswnKZUFv5fe	COPIA ELECTRÓNICA
Esta es una copia auténtica imprimible de un doumento electrónico por la CNMV, según el artículo 27.3 c) de la Ley 39/2015, de 2 de octubre. Su autenticidad puede ser contrastada a través de la siguiente dirección: https://sede.cnmv/LibreAccesso/CSV.aspx

Impairment losses for the year are recorded in the "Allowance to the asset impairment provision" and the reversal under "Reversal of the asset impairment provision" in the consolidated income statement.

The market value of real estate investment and of real estate for own use basically represents the value determined by an independent appraiser that uses appraisal techniques based on the variables observed in the market (Level 2). The appraisal methods commonly used are the cost method, the comparison method, the future rental income method and the abbreviated residual method, depending on the characteristics of the asset being appraised.

Moreover, most real estate corresponds to assets assigned to technical provisions are performed on a regular basis, as established for valuation reviews by the supervisory bodies of insurance activities.

Revenues and expenses derived from real estate investments in 2019 are shown in the table below:

	Type of investment
Item	Operating investment		Equity		Other Activities		Total
	2019	2018	2019	2018	2019	2018	2019	2018
Revenue from real estate investment
From rentals	48.07	42.16	1.52	2.13	15.58	13.70	65.17	57.99
Other	1.45	31.88	0.01	0.05	1.88	2.33	3.34	34.26
Gains on disposals	9.27	25.64	0.40	0.36	2.67	6.32	12.34	32.32

Total revenue from real estate investment	58.79	99.68	1.93	2.54	20.13	22.35	80,85	124.57
Expenses from real estate investment
Direct operating expenses	21.85	23.01	→→	A **	0.61	44	22.46	23.01
Other expenses	2.75	4.69	0.15	0.04	8.52	8.45	11.42	13.18
Losses on disposals	5.28	5.70	ﻪ ﻋ		vu	0.05	5.28	5.75
Total expenses from real estate investment	29.88	33.40	0.15	Q.04	9.13	8.50	39.16	41.94

Figures in millions of euros

6.3. LEASING

The information regarding lease contracts for 2019 have been prepared in line with EU-IFRS 16, the regulation in effect as of January 1 this year.

The Group is the lessee of right-of-use property and other intangible assets. These lease terms have an average duration of between 5 and 18 years, without renewal clauses stipulated in the agreements. There is no restriction on the lessee whatsoever regarding the prerogative to sign these leases.

The opening balances at January 1, 2019 from the application of EU-IFRS 16 for lease contracts in which the Group is the lessee stood at 312.44 million euros of right-of-use assets and 328.30 million in liabilities for payment obligations.

The English version is a translation of the original in information purposes only. In case of discrepancy, the Spanish version shall prevail.

The financial statements at the close of 2019 include the following amounts:

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ltem	Real estate for own use	Other fixed assets	Total
ASSET
Right-of-use (net book value	285.09	1.44	286.53
LIABILITY
Other financial liabilities (payment obligations)	309.67	5.72	315.39
INCOME STATEMENT
Depreciation	-43.14	-1.861	-45
Interest expenses	-16.87	-0.37	-17.241

Figures in millions of euros

Expenses from interests are recorded in the consolidated income statement in the headings "operating investment expenses" for the insurance business and "financial expenses" for other activities. The expenses for depreciation recorded are reclassified by purpose in line with the criteria indicated in note 5.21.

Expenses for short-term leases or leases with underlying assets with little value, not included in the above chart, stand at 35.14 million euros.

Total payments for the period reach 59.75 million euros.

The future minimum payments for non-cancellable leases at the close of 2019, not considering the financial discount, are as follows:

tem	Real estate for own use	Other fixed assets	Total
Less than one year More than one year but less than five More than five years	55.98 166.38 200.09	3.20 3.15	59.18 169.53 200.09
TOTAL	422.45	6.35	428.80

Figures in millions of euros

The rate applied for calculating debt follows a methodology based on interest rate curves by country and currency, applied individually

The average weighted rate for real estate and other fixed assets reached 5.18 and 8.83 percent, respectively.

The Group has made use of the application deferral of EU-IFRS 16 for those short term lease contracts and/or those containing underlying assets with little value.

In 2018, operating lease Operations were recorded according to EU-IAS 17 "Leases", in force at the close of the period, and said information has not been restated, as permitted by EU_IFRS 16.

The English version is a translation of the original in Spanish for information purposes only. In Spanish version shall prevail.

The future minimum payments payable for non-cancellable operating leases at December 31, 2018 according to EU-IAS 17 were as follows:

ltem	2018
Less than one year	42.09
More than one year but less than five	157.24
More than five years	232.30
TOTAL	431.63

Figures in millions of euros

The Group is lessor of operating leases covering real estate. These lease terms have an average duration of between five and six years, without renewal clauses stipulated in the agreements. There is no restriction on the lessee whatsoever regarding the prerogative to sign these leases.

The following chart shows the amounts corresponding to operating lease contract as a lessor at the close of the last two years:

	Net book value
Type of assets	2019	2018
Real estate investments	1,002.15	849.58

Figures in millions of euros

Payments from operating leases for the last two years is as follows:

ltem	2019	2018
Less than one year More than one year but less than five More than five years	55.60 147.30 98.52	53.18 143.82 96.48
TOTAL	301.42	293.48

Figures in millions of euros

The English version is a translation of the original in information purposes only. In case of discrepancy, the Spanish version shall prevail.

6.4. FINANCIAL INVESTMENTS

At December 31, 2019 and 2018 the composition of financial investments was as follows:

	Book value
ltem	2019	2018

HELD-TO-MATURITY PORTFOLIO
Fixed income	1,949.70	1,939.60
Other investments	23.69	11.87
TOTAL HELD TO MATURITY PORTFOLIO	1,973.39	1,951.47

AVAILABLE-FOR-SALE PORTFOLIO
Shares	2,021.12	1,799.94
Fixed income	34.312.36	31,487.88
Mutual Funds	725.98	432.38
Other	25.75	33.53

TOTAL AVAILABLE FOR SALE PORTFOLIO	37,085.21	33,753.73

TRADING PORTFOLIO
Derivatives (not for hedging):
Financial swaps	494.47	453.00
Options	0.03	0.70
Other investments:
Shares	739.91	607.21
Fixed income	3,181.59	3,090.04
Mutual Funds	1,100.11	898.05
Hybrids	392.72	413.13
Deposits	0.42
Other	28.02	78.54

TOTAL TRADING PORTFOLIO	5,937.27	5,540.77

Figures in millions of euros

The process for the valuation of financial assets is as follows:

a) When the asset is acquired, it is assigned to a specific portfolio (held-to-maturity, available for sale, or trading) depending on the characteristics of the liabilities to which it is going to be assigned and on the local and international legislation on accounting and insurance.
b) The accounting nature of the portfolios dictates the type of valuation performed. However, at least once a month all assets are valued against the market using the valuation methods mentioned in Note 5.5 "Financial investments" (Level 1, Level 2 and Level 3).
c) The valuations are performed directly by the Group's companies, although in some countries an independent financial institution carries them out in line with the local regulations.

The valuation policy is decided by the Investment Committees and/or Risk Committees, and is reviewed at least once a quarter.

Furthermore, the MAPFRE S.A. Executive Committee analyzes the value of all investments, gains and losses on a regular basis.

The English version is a translation of the original in Spanish for information purposes only. In Spanish version shall prevail.

With regard to the sensitivity of fair value measurements, changes in the non-observable variables used in the aforementioned individual valuations would not significantly alter the fair value obtained. Quoted prices are monitored and verified on a regular basis in order to decide whether any transfers between levels are required:

1. If the quotation source for a particular asset is no longer representative, it is transferred from Level 1 to Level 2.
1. Assets are transferred from Levels 2 and 3 to Level 1 if a reasonable quotation source is verified.
1. Assets are transferred to Level 3 when there are no longer any observable market data.

SPPI Test

At the close of 2019 and 2018, the Group carried out an analysis of fixed-income securities classified in the held to maturity and available for sale portfolios, with the aim of determining which securities receive cash flows solely from payments of principal and interest, i.e. if they pass the SPPI test. In 2018, only those securities from the most relevant Units and Regional Areas were analyzed. The results of said analysis is shown below, with a breakdown of Book and Fair values at December 31, 2019 and 2018, and the variation of the fair value during said periods.

2019

Result	Book Value	Fair value
		Amount	Variation
Pass SPPI test	35,317.45	35,521.03	1,897.80
Do not pass SPPI test	944.61	945.25	46.751
Total	36,262.06	36,466.28	1,944.55

Figures in millions of euros

Additionally, the following chart provides a breakdown of the financial assets that pass the SPPI test:

Rating		Amount passing SPPI test
	Book value	Fair value
AAA	2,076.86	2.176.27
AA	2.993.55	2.994.51
A	20,265.76	20.265.77
BBB	7,970.96	7.983.14
BB OR FESS	1,427.90	1,520.00
NO CREDIT RATING	582.42	581.34
Total	35,317.45	35,521.03

Figures in millions of euros

The English version is a translation of the original in information purposes only. In case of discrepancy, the Spanish version shall prevail.

Código seguro de verificación (CSV): xIvfjCSHJswnKZUFv5fe	COPIA ELECTRÓNICA
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ટેવે

Result	Book value	Fair value
		Amount	Variation
Pass SPPI test	29,750.01	29,928.39	(178.38)
Do not pass SPPI test	445.29	443.87	(19.20)
Inconclusive	1,671.10	1,682.60	(19.05)

Total analyzed	31,866.40	32,054.86	(216.63)

2018

Figures in millions of euros

Of the securities that pass the SPPI test, 99 percent correspond to instruments with low credit risk, classified as investment grade.

Held-to-maturity portfolio

The investments allocated to the held-to-maturity portfolio at December 31, 2019 and 2018 are shown below:

	Fair value										Impairment
Item	Book vislue		Level 1. Quotation price		Leval 2. Observable data		Level 3. Other measurements		Reversie from interest		Recorded loss		Reversal gains
	2019	2018	2019	2018	2019	2018	2019	2018	2019	2018	2019	2018	2019	2018
Fixed income Other investments	1.949.70 23.69	1.939.60 11.87	1,943.85 15.51	1,845.18 5.83	167.18 0.23	131.63 0.04	42.88 7.95	37.53 5.99	177.29 3.11	183.12 1.58	44			ﮨﻨﮯ
TOTAL	1,973.39	1,951.47	1,959.36	1,851.01	167.41	131.67	50.83	43.52	180,40	184.70	-	***		-

In relation to Level 3 financial assets in the held-to-maturity portfolio, no significant transactions were carried out in 2019 and 2018.

Available-for-sale portfolio

The investments allocated to the available-for-sale portfolio, at December 31, 2019 and 2018 are shown below:

	Book value (fair value)									Impairment
item	Level 1. Quotation price		Level 2. Observable data		Level 3. Other measurements		Total		Recorded loss		Reversal galns
	2019	2018	2019	2018	2019	2018	2019	2018	2019	2018	2019	2018

Shares	1,956.11	1,745.91	62.55	49.50	2.46	4.53	2,021.12	1,799.94	(1.85)	(4.19)	**	0.12
Fixed Income	28,594.55	26,702.47	5,708.84	4,771.83	8.97	13.58	34,312.36	31,487.88	(11.45)	(10.53)	0.01	0.05
Mutual Funds	381.85	322.73	37.27	0.52	306.86	109.13	725.98	432.38	(0.26)
Other	25.75	29.16	1800	4.35	44	0.02	25,75	33.53	ﺷﻬﺮ		ﻀﻔﺔ	40

TOTAL	30,958.26	28,800.27	5,808.66	4,826.20	318.29	127.26	37,085.21	33,753.73	(13.56)	{14.72}	0.01	0.17

The English version is a translation of the original in Spanish for information purposes only. In Case of discrepancy, the Spanish version shall prevail.

seco electrónica	Código seguro de verificación (CSV): xIvfjCSI
CNMV	Esta es una copia auténtica imprimible de un documento autenticidad puede ser contrastada a través de la siquien

The valuation adjustments of portfolio investments amounted to 5.50 and 3.42 billion euros at December 31, 2019 and 2018 respectively, which have been recorded net of the tax effect on equity.

Transfers to the consolidated income statement of valuation adjustments of portfolio investments in previous years, undertaken during 2019 and 2018, amount to 440.24 and 144.29 million euros, respectively.

In 2019 and 2018, there were asset transfers from Levels 1 to Level 2 for the amount of 872.98 and 975.67 million euros, respectively.

There were no variations in valuation techniques at Levels 2 and 3.

A reconciliation of the opening and closing balances at the close of period for Level 3 financial assets in the available-for-sale portfolio is shown below:

Available-for-sale portfollo		Equity instruments and mutual funds		Debt securities		Total Other financial assets
	2019	2018	2019	2018	2019	2018	2019	2018
Opening balance	113.66	32.00	13.58	16.18	0.02	-	127.26	48.18
Acquisitions	225.82	72.94	8.57	12.85		ﻠﻐﺔ ﺍﻟﻤﺴﺎﺣﺔ ﺍﻟﻤﺴﺎﺣﺔ ﺍﻟﻤﺴﺎﺣﺔ ﺍﻟﻤﺴﺎﺣﺔ ﺍﻟﻤﺴﺎﺣﺔ ﺍﻟﻤﺴﺎﺣﺔ ﺍﻟﻤﺴﺎﺣﺔ ﺍﻟﻤﺴﺎﺣﺔ ﺍﻟﻤﺴﺎﺣﺔ ﺍﻟﻤﺴﺘﺸﺎﺑﺎﺕ ﺍﻟﻤﺴﺎﺣﺔ ﺍﻟﻤﺴﺎﺣﺔ ﺍﻟﻤﺴﺘﺸﺎﺑﻴﺔ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺴﺘﺸﺎﺑﺎﺕ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺴﺘﺸﺎﺑﺎﺕ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺴﺘﺸﺎﺑﻴﺔ ﺍﻟ	234.39	85.79
Disposals	(30.34)	(4.73)	(8.60)	(12.91)			(38.94)	(17.64)
Transfer from Level 1 or 2	No. of	24.66	-	0.49	-	-	444	25.15
Transfer to Level 1 or 2	----	-	-	-	t		-	1
Amortization	2	MA	-	***		***		ﺒﻴﻨﻬﺎ
Gains and losses	2.41	(2.91)	(4.54)	(3.03)	-	Prov	(2.13)	(5.94)
Other	(2.23)	(8.30)	(0.04)		(0.02)	0.02	(2.29)	(8.28)
Closing balance	309.32	113.66	8.97	13.58	ﻤﻨﻬﺎ	0.02	318.29	127.26

At the close of 2019 and 2018, the impairment analyses performed for each security in the equity portfolios concluded that there was no significant impairment, or any signs of such, in any of the investments measured at their stock market quoted price as none of the objective situations determining this eventuality had occurred.

With respect to investments in unlisted assets, in 2019 and 2018, losses of 4.28 and 3.38 million euros, respectively, were recognized for the equity investment in SAREB. No provisions were made during the periods 2019 and 2018 for significant impairments in unquoted assets analyzed individually.

At the close of 2019 and 2018, the Group had fixed-income assets as guarantees for financial swap operations with a market value of 496.49 and 425.26 million euros, respectively. These financial assets are classified in the available-for-sale portfolio. At the close of these years, the guaranteed assets amounted to 516.90 and 465.16 million euros, respectively. In both cases the guarantee matures on a daily basis, at which time a new guarantee is established or the existing guarantee is maintained or canceled. The existence of these guarantees mitigated the counterparty risk (CVA/DVA) on a large portion of the Group's derivatives.

The English version is a translation of the original in information purposes only. In case of discrepancy, the Spanish version shall prevail.

Trading portfolio

	Book value (fair value)
ltem	Level 1. Quotation price		Level 2. Observable data		Level 3. Other measurements		Total
	2019	2018	2019	2018	2019	2018	2019	2018
Derivatives (not for hedging)
Financial swaps		-	494.47	453.00	-		494.47	453.00
Options			0.03	0.70			0.03	0.70

TOTAL DERIVATIVES (NOT FOR HEDGING)	us on	a m	494.50	453.70	ﺴ ﺖ	-	494.50	453.70
Other investments
Shares	738.56	સ્ત્રીકે જિલ્લ	0.05	0.05	1.30	1.30	739.91	607.21
Fixed income	2,610.66	2,900.95	570.93	189.09		----	3,181.59	3,090.04
Mutual Funds	1,058.91	895.16	41.20	2.89	ﮩﯿﮟ	-	1,100.11	898.05
Hybrids	93.79	10.59	298.93	402.54	t		392.72	413.13
Deposits	0.42				-		0.42
Other	0.01	0.41	1.07	78.23	26.94		28.02	78.64

TOTAL OTHER INVESTMENTS	4,502.35	4,412.97	912.18	672.80	28.24	1.30	5,442.77	5,087.07
TOTAL TRADING PORTFOLIO	4,502.35	4,412.97	1,406.68	1,126.50	28.24	1.30	5,937.27	5,540.77

The investments allocated to the trading portfolio at December 31, 2019 and 2018 are shown below:

During 2019 and 2018 no significant transactions were carried out involving Level 3 financial assets held for trading, and no transfers were made from/to this level.

The English version is a translation of the original in information purposes only. In case of discrepancy, the Spanish version shall prevail.

Gains and losses recognized in the 2019 and 2018 results are as follows:

	Gains (Losses) allocated to results
Item		Unrealized		Realized
	2019	2018	2019	2018
Derivatives (not for hedging) Financial swaps Options	(4.79)	(41.89)	14.79 (0.82)	(5.80) (0.28)
TOTAL DERIVATIVES (NOT FOR HEDGING)	(4.79)	(41.89)	13.97	(6.08)
Other investments Shares Fixed income Mutual Funds Hybrids Deposits Other	64.11 44.86 76.64 17.44 0.42	(22.47) (12.17) (55.96) (9.60) (0.08)	18.31 19.68 20.60 (6.04)	(1.27) (6.16) (3.30) 0.10
TOTAL OTHER INVESTMENTS	203.47	(100.28)	52.55	(10.63)
TOTAL TRADING PORTFOLIO	198.68	(142.17)	66.52	(16.71)

Figures in millions of euros

The main derivative instruments correspond to financial swaps of certain or predefined flows in which a Group company assumes the obligation to pay certain fixed or predefined amounts, usually stated in euros. The sum of 494.47 million euros was recorded in the trading portfolio for this item in 2019 (453.00 million euros in 2018).

Note 7 "Risk Management" provides a breakdown of the maturity of fixed-income securities.

6.5. INVESTMENTS ON BEHALF OF LIFE INSURANCE POLICYHOLDERS BEARING THE INVESTMENT RISK

The following table shows the breakdown for the "investments on behalf of Life insurance policyholders bearing investment risk" heading at December 31, 2019 and 2018:

				Book value (fair value)					Earnings
Rem	Level 1. Quotation price		Level 2. Observable data		Level 3. Other measurements		Total		Unrealized		Realized
	2019	2018	2019	2018	2019	2018	2019	2018	2019	2018	2019	2018

Shares	670.61	414.99				ﻀﻬ	670.61	414.99	11.39	(44.92)		0.05
Fixed income	262.30	803.76	563.01	260.41		**	825.31	1,064.17	62.98	(47.52)	21.15	16.95
Mutual funds holdings	1,014.23	763.25	0.04	0.08		-	1,014.32	763.33	45.26	(16.12)	37.35	33.49

TOTAL	1,947,19	1,982,00	563.05	260.49	t	**	2,510,24	2,242.49	119.63	(108.56)	58.50	50.49

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

In the balance of "Mutual funds", the amount of Group company majority shareholdings in mutual funds linked to Life insurance where the policyholder bears the investment risk is included, for a total of 295.44 and 134.43 million euros to December 31, 2019 and 2018, respectively. The breakdown of the assets this appears in is the following:

ltem	2019	2018

Fixed income	193.17	33.42
Mutual funds	83.86	88.19
Other	18.41	12.82

TOTAL	295.44	134.43

Figures in millions of euros

6.6. RECEIVABLES

The breakdown of the "Receivables" heading at December 31, 2019 and 2018, as well as impairment losses and gains on reversals recorded in the last two years are as follows:

tem		Gross amount				Impairment Net balance on balance sheet
			Impairment				Recorded losses		Reversal gains
	2019	2018	2019	2018	2019	2018	2019	2018	2019	2018

Receivables on direct Insurance and co- Insurance operations	4,002.28	3,709.38	(57.19)	(65.17)	3,945.09	3,644.21	(11.29)	(10.82)	6.97	9,93
Receivables on reinsurance operations	971.75	939.20	(37.42)	(36.21)	934.33	903.08	(16.44)	(21.95)	15.89	15.64
Tax receivables	409.20	336.70			409.20	336.70	-		ﻴﺔ ﺑﻴﻨﻴﺔ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺴﺎﺑﻘﺔ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺴﺎﺑﻘﺔ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺴﺎﺑﻘﺔ ﺍﻟﻤﺴﺎﺑﻘﺔ ﺍﻟﻤﺴﺎﺑﻘﺔ ﺍﻟﻤﺴﺎﺑﻘﺔ ﺍﻟﻤﺴﺎﺑﻘﺔ ﺍﻟﻤﺴﺎﺑﻘﺔ ﺍﻟﻤﺴﺎﺑﻘﺔ ﺍﻟﻤﺴﺎﺑﻘﺔ ﺍﻟﻤﺴﺎﺑﻘﺔ ﺍﻟﻤﺴﺎﺑﻘﺔ ﺍﻟﻤﺴﺎﺑﻘﺔ ﺍﻟﻤﺴﺎﺑﻘﺔ ﺍﻟﻤﺴﺎﺑﻘﺔ ﺍﻟﻤﺴﺎ	-
Corporate and other receivables	798.38	895.11	(17.61)	(17.90)	780.77	877.21	{10.47}	(3.02)	2.43	2.28
TOTAL	6,181.61	5,880.48	(112.22)	(119.28)	6,069.39	5,761.20	(38.20)	(35.79)	25.29	27.85

tos in millons of puso

The heading "Receivables on direct insurance operations" includes premiums pending collection from policyholders and mediators, while the heading "Receivables on reinsurance operations" includes outstanding balances from ceded, retroceded and accepted reinsurance operations. In 2018 two Brazilian subsidiaries wrote off unrecoverable balances in "Receivables on direct insurance operations" for the amounts of 35.11 and 38.83 million euros, respectively. As the unrecoverable amounts came from prior years, they were included, net of taxes, in other variations in Reserves and Non-controlling interests in the Consolidated statement of changes in equity, for the total amount, including other minor adjustments in Debt and Technical Provisions, of 26.67 and 27.17 million euros, respectively.

The English version is a translation of the original in information purposes only. In case of discrepancy, the Spanish version shall prevail

The breakdown for the "Corporate and other receivables" heading at the close of the last two years is as follows:

Corporate and other receivables	Amount
	2019	2018
Debtors of sales or provision of services	95.55	236.38
Receivables for claim recovery (including collaboration agreements with other insurance companies)	19.47	33.68
Advance payment of policies (Life insurance)	28.53	29.30
Legal deposits	376.05	326.03
Receivables with Public Administrations	2.99	0.55
Balance receivables from personnel	25.37	27.70
Other debtors	232.81	223.57
TOTAL	780.77	877.21

Impairment is calculated and, where necessary, recognized, as described in the accounting policy 5.9 "Receivables" in this annual report.

The balances included in the "Receivables" heading do not accrue interest and generally their liquidation is executed the following year.

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

6.7 Asset Impairment

The following tables show asset impairment for the last two periods:

2019

	Adjustments to		Recorded in results Changes to the			Write-off of	Closing
Impairment in:	Opening balance	the opening balance	scope	Increase	Decrease	asset	balance
Intangible assets	272.92	3.05		65.62		(1.71)	339.88
Goodwill 1.	262.34	3.05	-	65.62	--	(1.71)	329.30
II. Other intangible assets	10.58		-		-	-	10.58
Property, plant and equipment	13.44	-	-	2.11	(3.52)		12.03

I. Real estate for own use	11.40		-	2.11	(3.52)	-	ਹੋਂ ਨੇਰੇ
II. Other property, plant and equipment	2.04						2.04
Investments	395.05	(0.59)	ﻴﻨﻴﺎ	24.17	(7.24)	(56.82)	354.57
Real estate investments 1.	248.53	0.23		4.36			242.70
Financial investments 11.					(7.23)	(3.19)

-Held-to-maturity portfolio				-			1
· Available-for-sale portfolio	108.94	(0.78)		13.56	(0.01)	(28.50)	93.21
-Trading portfolio	- -
III. Investments recorded by applying the equity method	18.62	--		-	--	(8.53)	10.09
IV. Deposits established for accepted reinsurance		--
v. Other investments	18.96	(0.04)	-	6.25	--	(16.60)	8.57
Inventories	80.77		-	1.22	(1.24)		80.75
Receivables	119.28	3.03		38.20	(25.29)	(23.00)	112.22
Receivables on direct insurance and co- insurance operations	65.17	(1.81)		11.29	(6.97)	(10.49)	57.19
II. Receivables on reinsurance operations	36.21	4.56		16.44	(15.89)	(3.90)	37.42
lll. Tax receivables
IV. Social security and other receivables	17.90	0.28	-	10.47	(2.43)	(8.61)	17.61
Other assets				-	-	-
TOTAL IMPAIRMENT	881.46	5.49	-	131.32	(37.29)	(81.53)	899.45

The English version is a translation of the original in information purposes only. In case of discrepancy, the Spanish version shall prevail.

2018

	Adjustments to		Changes to the		Recorded in results	Write-off of	Closing
Impairment in:	Opening balance	the opening balance		Increase	Decrease	કરકર્ણ	balance
Intangible assets	199.86	(5.45)	--	173.45	-	(94.94)	272.92
Goodwill 1.	141.95	(2.18)	--	173.45	-	(50.88)	262.34
II. Other intangible assets	57.91	(3.27)				(44.06)	10.58
Property, plant and equipment	20.06	(0.51)	(0.18)	2.22	(8.09)	(0.05)	13.44

Real estat for own use 1.	17.45		(0.18)	2.22	(8.09)		11.40
II. Other property, plant and equipment	2.61.	(0.51)				(0.06)	2.04
Investments	450.82	(39.28)	-	28.81	(28.68)	(16.62)	395.02

Real estate investments 1 -	267.26	0.04	+++	11.78	(28.51)	(2.04)	248.53
Financial investments 11.
-Held-to-maturity portfollo
· Available-for-sale portfolio	155.94	(46.97)		14.72	(0.17)	(14.58)	108.94
-Trading portfolio	--
III. Investments recorded by applying the equity method	18.62	-++			+ .		18.62
IV. Deposits established for accepted reinsurance	na			ﺐ ﺐ			-
Other investments V.	9.00	7.65	--	2.31	-		18.96
Inventories	78.59	ﻪ ﺑﻌ	-	4.08	(1.90)	-	80.77
Receivables	142.07	(11.03)	-	35.79	(27.85)	(19.70)	119.28
1. Receivables on direct insurance and co- Insurance operations	78.35	(13.66)		10.82	(9.93)	(0.41)	65.17
II. Receivables on reinsurance operations	46.81	2.38		21.95	(15.64)	(19.29)	36.21
111. Tax receivables
IV. Corporate and other receivables	16.91	0.25	--	3.02	(2.28)	--	17.90
Other assets						-
TOTAL IMPAIRMENT	891.40	(56.27)	(0.18)	244.35	(66.52)	(131.32)	881.46

The English version is a translation of the original in information purposes only. In case of discrepancy, the Spanish version shall prevail.

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6.8. Cash

Expenditure

During 2019 and 2018 several disbursements were made related to investments in Group companies and the acquisition of businesses. The most significant acquisitions were as follows:

	Details of acquisition
Acquiring company	Company	Percentage	Activity	Amount disbursed
2019
MAPERE VIDA S.A.	CAIA GRANADA VIDA S.A.	51.00%	Insurance	61.76
MAPFRE VIDA S.A.	CAIA MURCIA VIDA AND PENSIONES S.A.	51.00%	Insurance	48.55
MAPERE ESPAÑA S.A.	SANTANDER MAPFRE S.A.	50.01%	Insurance	82.27
2018 MAPFRE BRASIL PARTIPACOES S.A.	MAPFRE BB SH2 PARTICPACOES S.A.	50.00%	Holdings from insurance entities	519.44

The aforementioned investments were financed using shareholders' equity, the issue of bonds, bank loans and drawdowns on the long-term line of credit.

Acquisitions in 2018 are framed by the reorganization of the strategic alliance between MAPFRE and Banco do Brasil, by means of which the Group became shareholder of 100 percent of the business coming from the agent network and the auto and large risk business from the bank channel. The acquisition generated a reduction in non-controlling interests and in reserves for the amount of 331.62 and 196.34 million euros respectively.

No significant non-monetary transactions related to investment and financing activities have been excluded from the cash flow statement.

Commitments

Non-controlling interests of the MAPFRE RE subsidiary have a put option on the shares of this company. If exercised, MAPFRE S.A. or a Group company would have to acquire the shares from the selling noncontrolling shareholder. The purchase price for the MAPFRE RE shares will be calculated using the previously agreed formula. At December 31, 2019 and 2018, considering the variables included in the aforementioned formula, the commitment assumed by the Group if this option were exercised would amount to a total of approximately 108.75 and 98.09 million euros, respectively.

The English version is a translation of the original in information purposes only. In case of discrepancy, the Spanish version shall prevail.

6.9. NON-CURRENT ASSETS HELD FOR SALE, ASSOCIATED LIABILITIES AND DISCONTINUED OPERATIONS

At December 31, 2019 and 2018 the main non-current assets held for sale, discontinued operations and associated liabilities were as follows:

ltem	Non-current assets classffied as held-for-sale			Discontinued operations	Total
	2019	2018	2019	2018	2019	2018
Assets
Intangible assets	50.84	40.65	-	-	50.84	40.66
Property, plant and equipment	63.54	43.06			રિક સિંહ	43.06
Investments	80.08	201.81			80.08	201.81
Credits	7.68	16.44			7.68	16.44
Cash	28.26	31.48			28.26	31.48
Other assets	33.84	8.03	-		33.84	8.03

Total assets	264.24	341.48	-	ra	264.24	341.48

Related liabilities
Technical provisions	69.02	63.28			69.02	89.96
Provision for risks and expenses	1.56	89.96			1.56	1.08
Deferred tax liabilities	1.18	1.08			1.18	1.08

Other debts	64.08	રૂકે સ્વ	na	vn	64.08	39.64
Total liabilities	135.84	193.96			135.84	193.95
Clausen on litten and of and

Non-current assets classified as held-for-sale and associated liabilities

The following is a description of the key transactions that generated assets and liabilities included in the above chart.

2019

• Funeral service business in Spain

In the last quarter of 2018, MAPFRE España and Santa Lucía S.A. signed a non-binding memorandum of understanding by virtue of which both parties reflected the preliminary agreements reached with the aim of establishing a strategic alliance for the joint development of their respective funeral service businesses in Spain. This alliance was formalized in 2019. The result of this alliance will be a leading group in the Spanish funeral business market, with direct and indirect access to 100 percent of the territory.

Once the definitive valuations have been set, currently underway, it has been agreed that MAPFRE, through its subsidiary FUNESPAÑA, will own 25 percent of the share capital and Santa Lucía the remaining 75 percent.

While relevant authorizations are still pending, the non-current assets held for sale and the associated liabilities from the businesses contributed to this alliance reached 193.13 and 65.88 million euros, respectively, at the close of 2019; and 135.74 and 39.04 million euros, respectively, at the close of 2018.

The English version is a translation of the criginal in Spanish for information purposes only, the Spanish version shall prevail.

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· Cession of long-term Complementary High-Risk Workers' Compensation Insurance in Peru

This will imply the transfer of assets and liabilities linked to this insurance, for the amount of 69.02 million euros.

2018

· Reorganization of activity in the United States

In 2018, MAPFRE has reorganized its activity in the United States, selling its Life operation and exiting five states where it was operating primarily in the Auto line, due to not having sufficient scale there to make them profitable.

This restructuring was based on the following three transactions:

a) The sale during the second quarter of 2018 of MAPFRE Life Insurance Company to the Swiss reinsurer Swiss Re. The sale transaction was limited to assets and liabilities, as well as the license MAPFRE had in all states in the U.S. to operate in the Life insurance line.
b) The sale to the US insurer Plymouth Rock of the business in New York and New Jersey. In the case of New York, MAPFRE sold its subsidiary, MAPFRE Insurance Company, while in New Jersey, the operation was structured as a business portfolio transfer to various entities of the Plymouth Rock group. Both operations, which closed simultaneously, received approval from the regulatory bodies and were closed on January 2, 2019.
c) The transfer, in April, of the Non-Life business portfolios in the states of Tennessee, Kentucky and Indiana to the entity Safeco Insurance, a subsidiary of the Liberty Mutual Group.

At the close of 2018 the fair value of the assets from these operations was recorded in the heading "Non-current assets held for sale" for the amount of 112.76 million euros, with associated liabilities reaching 90.91 million euros.

The reorganization of all these businesses in the United States implied recording losses, net of taxes, of approximately 8.60 million dollars (7.20 million euros) at the close of December 2018, and a cash inflow in MAPFRE USA of 68.9 million dollars.

6.10. EQUITY

Share capital

The share capital is recorded by the face value of disbursed shares or whose disbursement was demanded.

The controlling company's share capital at December 31, 2019 and 2018 was represented by 3,079,553,273 shares, with a face value of 0.10 euros each, fully subscribed and paid-up. All shares carry identical voting and dividend rights.

The Annual General Meeting of March 9, 2018 authorized the directors of the controlling company to increase the capital up to a maximum of 153,977,663.65 euros, equivalent to 50 percent of the share capital at the time. This authorization was granted for a period of five years. Furthermore, the directors were

The English version is a translation of the original in information purposes only. In case of discrepancy, the Spanish version shall prevail

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authorized to issue analogous fixed-income securities or debentures, convertible or not, for a maximum amount of 2 billion euros.

CARTERA MAPFRE directly held 67.60 percent of the share capital at December 31, 2019 and 2018.

All shares representing the share capital of the controlling company are admitted to official trading on the Madrid and Barcelona stock markets.

. Treasury Stock

In 2019, 7,897,336 shares of treasury stock were bought on the market and 1,839,387 were given to directors of subsidiaries as part of variable remuneration schemes, resulting in a net increase of 6,057,949 shares of treasury stock, representing 0.1967 percent of the amount of 15.59 million euros. In the previous year, 2,079,216 shares of treasury stock were sold, representing 0.0675 percent of the capital, for the amount of 4.11 million euros. At December 31, 2019 and 2018, the controlling company owned 30,489,839 and 24,431,890 treasury stock respectively, representing 0.9901 and 0.7934 percent of the capital, for the amount of 63.84 and 48.25 million euros, respectively.

At December 31, 2019 and 2018, no other Group company held shares in the controlling company.

Valuation change adjustments

This includes the equity reserves arising as a consequence of revenues and expenses recognized in each year which, pursuant to IFRS, must be recorded in the Group's equity accounts.

The following table shows the "Valuation change adjustments" recorded under that Equity heading at the close of the last two financial years:

ltern		Amount
	2019	2018
Fixed income
Capital gains	4,791.11	3,834.87
Capital losses	(1,987.00)	(1,772.05)
Equity and Mutual Funds
Capital gains	795.17	142.45
Capital losses	(18.56)	(114.17)
Shadow accounting	(2,558.91)	(1,839.32)
Other adjustments	(18.13)	41.34
TOTAL	1,003.68	293.12

igures in millions of euros

Restrictions on the availability of reserves

The heading "Reserves" includes the controlling company's legal reserve, amounting to 61.59 million euros at December 31, 2019 and 2018, which may not be distributed to shareholders, except in the event of the controlling company's liquidation, and may only be used to offset potential losses.

The English version is a translation of the original in information purposes only. In case of discrepancy, the Spanish version shall prevail.

Código seguro de verificación (CSV): xIvfjCSHJswnKZUFv5fe	COPIA ELECTRONICA
Esta es una copia auténtica imprimble de un documento electrónico archivado por la atículo 27.3 c) de la Ley 39/2015, de 2 de octubre. Su autenticidad puede ser contrastada a través de la siguiente dirección: https://sede.cnmv/l.ibreAcceso/CSV.aspx

The same restriction applies to the legal reserves established by the subsidiaries and reflected in their balance sheets.
There are no other restrictions on the availability of reserves for any significant amount, except for those described in the section regarding "Tax incentives" in Note 6.20.

Capital management

Capital management is focused on ensuring stability and maintaining adequate remuneration, which are achieved through robust solvency margins, financial flexibility, the generation of cash flows, and the creation of value for shareholders.

Managed capital refers to the shareholders' equity permitted by the regulations currently in force and other management models used. The Group Solvency ratio offers great stability, backed by a high level of diversification and strict asset and liability management and investment policies.

In line with the Group's risk appetite, which corresponds to the level of risk that the Group is prepared to assume to attain its business objectives without any significant deviations (even in adverse circumstances), each business unit operates according to a series of risk tolerance levels based on the capital assigned.

MAPFRE has an internal capitalization and dividend policy that is designed to provide the business units with the capital necessary to cover the risks that have been assumed, all in a rational and objective way.

The volume of dividends for distribution is established in line with the estimated results and shareholders' equity. If actual performance deviates from the estimates made, the assigned capital is revised.

Remuneration for shareholders is linked to the Group's profits, solvency, liquidity and investment plans, as well as shareholders' expectations.

As a general rule, the Board of Directors recommends a distribution of dividends to the Annual General Meeting based on between 50 percent and 65 percent of the period attributable to the controlling company in its consolidated annual accounts.

The risk estimates and assignment of capital to each business unit are described in Note 7 of the annual report, "RISK MANAGEMENT".

The items that form part of the Group's available equity conform to the requirements of current regulations.

6.11. SUBORDINATED LIABILITIES

At December 31, 2019 and 2018, the balance of this account included the amortized cost of the subordinated debt issued by the controlling company, corresponding to the issuances in September 2018 and March 2017. The most relevant terms and conditions of these are described below:

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

Terms and Conditions		Issuance
	September 2018	March 2017
Nominal amount	500.00	600.00
Issue date	09.07.2018	03.31.2017
Maturity	09.07.2048	03.31.2047
First call option	09.07.2028	03.31.2027
Interest rate
- Until 1st call option	4.125%	4.375%
- After 1st call option	Euribor 3M + 4,30%	Euribor 3M + 4,543%
Listing	AIAF market	AIAF market
Rating	BBB-	BBB
Accrued unpaid interest
December 31, 2019 and 2018	6.50	19.78
Price at close of period
-2019	117.91%	117.74%
-2018	99.84%	102.49%

Figures in millions of euros

Both issuances, issued under Spanish jurisdiction, contemplate:

· Redemption in special cases: due to reform or modification of tax regulations, non-classification as issuer's own funds, and change in treatment granted by the credit rating agencies.
· Interest deferral: the issuer is obligated to defer interest payment should any Solvency Capital Requirement or Minimum Capital Requirement breach exist, or should the Relevant Regulator prohibit the issuer from making interest payments, or should the issuer be unable to meet regularly its due and payable liabilities.

6.12. FINANCIAL LIABILITIES

The following table shows the fair value breakdown of the financial liabilities:

	Book value		Fair value
ltem	2019	2018	2019	2018
Issue of debentures and other negotiable securities	1,004.82	1,004.05	1,087.20	997.32
Due to credit institutions	847.81	545.69	847.81	545.69
Other financial liabilities	1,913.08	1.262.80	1,903.41	1,256.84
TOTAL	3,765.71	2,812.54	3,838.42	2,799.85

Figures in millions of euros

At December 31, 2019 and 2018 the fair value of the issue of debentures and other negotiable securities corresponded to the quoted price at the close of the period (Level 1), including the accrued interest.

The English version is a translation of the original in information purposes only. In case of discrepancy, the Spanish version shall preval.

Código seguro de verificación (CSV): xlvfjCSHJswnKZUFv5fe	COPIA ELECTRONICA
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Issuance of debentures and other negotiable securities

At December 31, 2019 and 2018 the balance of this account included the amortized cost of the simple debentures issued by MAPFRE S.A. The most relevant terms and conditions governing issuing are described below.

®
e Nominal amount: 1 billion euros
� Issuance date: May 19, 2016
� Issuance period: 10 years
盘 Maturity: May 19, 2026
. Redemption: single payment on maturity and at par, with no expense for the holder
· Listing: Fixed-income AIAF market
Coupon: annual fixed 1.625 percent, payable on the anniversaries of the issue date up to and including the end maturity date
每 Issue rating: A-

The accrued interest outstanding at December 31, 2019 and 2018 amounted to 10.06 million euros. At December 31, 2019 and 2018 the securities were listed at 107.71 percent and 98.73 percent of their face value, respectively.

Debt payable to lending institutions

The breakdown of the amounts due to credit institutions at December 31, 2019 and 2018 is shown below:

Class of debt	Book value		Average interest rate %		Guarantees granted
	2019	2018	2019	2018	2019	2018
Finance lease	0.17	0.40	5.16	5.28
Credits	639.80	502.82	0.52	0.50		1
Loans	161.62	0.59	30.00
Other	46.22	41.88	1.00	1.00
TOTAL	847.81	545.69	ar un	-	---

Figures in millions of euros

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

Código seguro de verificación (CSV): xlvfjCSHJswnKZUFv5fe	COPIA ELECTRONICA
Esta es una copia auténica imprimible de un documento por la CNMV, según el atículo 27.3 c) de la Ley 39/2015, de 2 de octubre. Su autenticidad puede ser contrastada a través de la siguiente dirección: https://sede.cnmv/LibreAcceso/CSV.aspx

8 Credits

At December 31, 2019 and 2018 the main line of credit was as follows:

Bank		Limit		Drawn down
	Maturity	2019	2018	2019	2018
MAPFRE, S.A.	02.26.2024	1,000.00	1,000.00	610.00	490.00
TOTAL		1,000.00	1,000.00	610.00	490.00

Figures in millions of euros

The line of credit indicated above is a syndicated loan granted by a group of 10 banking companies and which accrues interest at a rate pegged to market variables and in 2018, was novated, modifying the conditions and extending its maturity. Among the conditions modified, it is worth pointing out that it became sustainable financing, also linking its interest to the Group sustainability parameters. As set out in the contract, in January 2019 its maturity was extended from February 2024 to February 2025.

Loans

The breakdown of the main loans in force at December 31, 2019 is as follows:

Bank	Period
MAPFRE VIDA MAPFRE ESPAÑA	01.31.2026 02.21.2024	110.00 51.00
TOTAL		161.00

Figures in millions of euros

Both loans accrue an interest rate linked to the Euribor, amortizing via flat, annual payments, the first being made two years from the date of the formalization of the loan in 2019.

Other financial liabilities

The heading "Other financial liabilities" includes the outstanding amount for financial obligations not included in any other items. The following table shows the breakdown at December 31, 2019 and 2018:

The English version is a translation of the original in information purposes only. In case of discrepancy, the Spanish version shall prevail.

	Amount
Other financial liabilities	2019	2018
Financial liabilities held for trading	471.05	322.36
Other financial liabilities measured at fair value with changes in P&L	498.94	469.60
Non-controlling interests in mutual funds (Note 3.2)	584.07	428.15
Financial liabilities from leases (Note 6.3)	315.39
Other financial liabilities	43.63	42.69
TOTAL	1,913.08	1,262.80

Flaures in millions of euros

Additionally, there is a line of credit granted by CARTERA MAPFRE with a limit of 400.00 million euros, accruing interest at a variable rate linked to the quarterly Euribor, and maturing on September 10, 2020, extendable for successive periods of one year. In 2018, no drawdowns were made on this line of credit.

At December 31, 2019 and 2018 the fair value of these liabilities did not differ significantly from their book value.

Regarding the fair value level, the fair value measurements of these liabilities are classified at Level 2, with the exception of the balance of "Non-controlling interests in mutual funds", valued at liquid value (mostly Level 1).

In 2019 and 2018 no financial liabilities were transferred between Levels 1, 2 and 3. Items are transferred between levels when they no longer meet the criteria for classification under a given level but meet those of one of the other levels. No adjustments were made for own credit risk in connection with the financial liabilities deriving from financial swap transactions, given that they are cash flow exchange operations whose current net value leads to a balance in favor of the counterparty. In any event, the application of adjustments for own credit risk in these transactions would not have a material effect on the income statement or on the company's equity.

The English version is a translation of the original in information purposes only. In case of discrepancy, the Spanish version shall prevail.

6.13. TECHNICAL PROVISIONS

1. Breakdown of the composition of technical provisions

The following table shows the balance composition of each of the technical provisions listed on the balance sheet of the last two years.

	Direct insurance		Accepted reinsurance		Ceded and retroceded reinsurance
ltem	2019 2018		2018 2019		2019	2018

Provisions for Non-Life unearned premiums and unexpired risks
1.1 Provision for unearned premiums	7,255.60	6,939.18	949.64	963.08	2,010.38	1,522.70
1.2 Provision for unexpired risks	38.00	48.06		1.08	mas

Ufe insurance provisions
2.1 Provisions for unearned premiums and unexpired risks
2.1.1. Provision for unearned premiums	1,419.89	1,248.19	239.25	510.86	6.48	5.68
2.1.2. Provision for unexpired risks	24.85	25.76		80.00	-
2.2 Mathematical reserves	24,826.18	22,973.80	73.91	79.86	50.52	50.27

Provisions for outstanding claims
3.1 Pending settlement or payment	8,691.10	8,884.91	2,440.95	2,298.95	3,890.94	3,762.77
3.2 Claims Incurred but not reported (IBNR)	1,206.80	1,183.15	106.10	160.98	400.79	526.03
3.3 For claim settlement internal expenses	176.81	181.93	2.29	4.23	22.13	14.26


Other technical provisions						1.08
4.1 Burial	1,002.15	909.89	-	-	1.47
4.2 Other	67.78	67.24	-	-	3.34	0.39
TOTAL	44,709.25	42,462.11	3,812.14	4,019.04	6,386.05	5,883.18

The English version is a translation of the original in Spanish for information purposes only. In Case of discrepancy, the Spanish version shall prevail.

2.

2.1. Provisions for unearned premiums, unexpired risks, claims, profit-sharing and other technical provisions

A) DIRECT INSURANCE AND ACCEPTED REINSURANCE

2019

frem	Opening balance	Adjustments to the opening balance	Changes to the scope	Provisions	Reversals	Closing balance
Provisions for Non-Life uneamed premiums and unexpired risks
1.1 Provision for uneamed premiums	7,902.26	67.09	0.30	8,188.61	(7,953.02)	8,205.24
1.2 Provision for unexpired risks	49.14	2.73		11.88	(25.66)	38.09
Life insurance provisions
2.1 Provisions for unearned premiums and unexpired risks
2.1.1. Provision for unearned promiums	1,759.05	(7.13)	11.22	2,411.82	(2,515.82)	1,659.14
2.1.2. Provision for unexpired risks	25.76	(3.65)		7.65	(4.91)	24.85
2.2 Mathematical provisions	23,053.66	(73.92)	265.15	3,963.15	(2,307.95)	24,900.09
Provisions for outstanding claims
3.1 Life Direct Insurance	1,155.00	(6.95)	21.75	2,388.83	(2,266.04)	1,292.59
3.2 Non-Life Direct Insurance	9,094.99	(49.46)	0.08	9,182.68	(9,446.17)	8,782.12
3.3 Accepted reinsurance	2,464.16	95.28		4,567.74	(4,577.84)	2,549.34
Other technical provisions	977.13	(0.03)	0.04	1,058.36	(965.57)	1,069.93
TOTAL	46,481.15	23.96	298.54	31,780.72	(30,062.98)	48,521.39

2018

Item	Opening balance	Adjustments to the opening balance	Changes to the scope	Provisions	Reversals	Closing balance
Provisions for Non-Life unearned premiums and unexpired risks
1.1 Provision for unearned premiums	8,324,52	(236.25)	-	9,121.87	(9,307.88)	7,902.26
1.2 Provision for unexpired risks	50.58	3.93	----	27.25	(32.62)	49.14
Life insurance provisions
2.1 Provisions for unearned premiums and unexpired risks
2.1.1. Provision for uneamed premiums	1,771.28	(123.26)	-	2,039.48	(1,928.45)	1,759.05
2.1.2. Provision for unexpired risks	158.21	(4.83)	ﻨﻬﺎ	8.26	(135.88)	25.76
2.2 Mathematical provisions	23,063.43	(102.74)	ww	2,182.55	(2,089.58)	23,053.66
Provisions for outstanding claims
3.1 Life Direct Insurance	1,134.11	(52.52)	--	2,152.24	(2,078.83)	1,155.00
3.2 Non-Life Direct Insurance	7,903.21	(127.43)	--	9,002.80	(7,683.59)	9,094.99
3.3 Accepted reinsurance	2,185.77	(113.36)	na	4,517.05	(4,125.30)	2,464.16
Other technical provisions	902.85	(3.69)	un	955.65	(877.68)	977.13
TOTAL	45,493.96	(760.15)	-	30,007.15	(28,259.81)	46,481.15

The amounts of the provisions and reversals of technical provisions shown in the tables above are recorded in headings "Changes in provisions for unearned premiums and unexpired risks", "Claims paid and variation

The English version is a translation of the original in information purposes only. In case of discrepancy, the Spanish version shall prevail.

Código seguro de verificación (CSV): xlvfjCSHJswnKZUFv5fe	COPIA ELECTRONICA
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in provision for claims, net", and "Variation in other technical provision" on the consolidated income statement.

B) CEDED AND RETROCEDED REINSURANCE

2019

ltem	Opening balance	Adjustments to the opening balance	Changes to the scope	Additions	Reversals	Closing balance

Provision for unearned premiums	1,522.70	100.72	0.06	3,834.74	(3,447.84)	2,010.38
Provisions for Life Insurance	ટર્ટ જેટ	(0.10)	1.06	87.02	(86.93)	57.00
Provision for outstanding claims	4,303.06	82.72	2.94	10,223.07	(10,297.93)	4,313.86
Other technical provisions	1.47	2.81	0.04	0.48	0.01	4.81

TOTAL	5,883.18	186.15	4.10	14,145.31	(13,832.69)	6,386.05

Figures in millions of euros

2018

ltern	Opening balance	Adjustments to the opening balance	Change to the scope	Additions	Reversals	Closing balance

Provision for unearned premiums	1,747.58	(66.17)	-	2,596.42	(2,755.13)	1,522.70
Provisions for Life insurance	68.70	(7.81)	-	53.64	(58.58)	55.95
Provision for outstanding claims	3,171.76	(201.33)	+ ++	11,787.77	(10,455.14)	4,303.06
Other technical provisions	1.58	(0.05)	Ca 97	0.42	(0.48)	1.47

TOTAL	4,989.62	(275.36)	man	14,438.25	(13,269.33)	5,883.18

Figures in millions of euros

2.2. Mathematical provisions

	Direct insurance and accepted reinsurance			Ceded and retroceded reinsurance
tem	2019	2018	2019	2018
Mathematical provisions at beginning of year	23,053.66	23,063.43	50.27	56.75
Adjustments to the opening balance	(73.92)	(102.74)	0.76	(5.63)
Business combinations	265.15		0.50	1.27
Premiums	1,689.17	2,014.35	0.12	0.13
Technical interests	908.88	427.23	2.22	2.05
Claim payments/collections	(2,307.95)	(2,089.58)	(3.04)	(4.74)
Provision adequacy test	0	(0.01)	-
Shadow accounting adjustments	1,353.06	(211.95)	***	***
Other	12.04	(47.07)	(0.31)	0.44
Deconsolidation (balance of provision on deconsolidation date)	****	-	un
Mathematical provisions at end of year	24,900.09	23,053.66	50.52	50.27

ures in millions of euros

The English version is a translation of the original in information purposes only. In case of discrepancy, the Spanish version shall prevail.

2.3. Burial provision

	Direct insurance and accepted reinsurance
Kem	2019	2018
Provisions at beginning of year	909.89	829.06
Adjustments to the opening balance	(0.04)	(0.06)
Consolidation (balance of provision on consolidation date)	t	-
Premiums	97.08	87.20
Technical Interest	9.47	16.07
Claim payments	(10.64)	(9.19)
Provision adequacy test	44.44
Other	(3.61)	(13.19)
Deconsolidation (balance of provision on deconsolidation date)	CA 114	85. 159
Provisions at end of year	1,002.15	909.89

ures in millions of a

3. Other information

3.1. Technical provisions for Life insurance where policyholders bear the investment risk

	Direct insurance and accepted reinsurance
ltem	2019	2018
Provision at beginning of year	2,242.49	2,320.14
Adjustments to the opening balance	(7.23)	(85.80)
Consolidation (balance of provision on consolidation date)	12.90	**
Premiums	856.89	837.70
Payment of claims	(807.48)	(582.97)
Asset valuation changes	211.00	(45.92)
Other	1.67	(200.66)
Deconsolidation (balance of provision on deconsolidation date)	-	-
Provision at end of year	2,510.24	2,242.49

s in millions of curos

3.2. Provision for unexpired risks

The provision for unexpired risks has been made by the Group's insurance companies in line with the criteria explained in Note 5.15.

3.3. Information related to Life insurance

No additional provisions for Life insurance deriving from the liability adequacy test were necessary.

The characteristics of the main Life insurance types sold by the Group's companies in 2019 and 2018 are listed below.

The English version is a translation of the original in Spanish for information purposes only. In espanish version shall prevail.

Spain @

LIFE INSURANCE TECHNICAL CONDITIONS
		Biometric tables	Technical Interest	Amount	Profit sharing Distribution
Format	Coverage	First order	Second order		(million	method
mapfre vida					euros)
Single premium group insurance contracts, with and without profit sharing:
- Mod. 342. Group annuity	Longevity	PERM/F-2000P	117.14% PER2012 COL ORDEN 2	2.28%	--	MAPFRE network
- Mod. 308. Group Flexinvida with Interest and premium reimbursement	Longevity / Death	PASEM 2010	PASEM2019 COL ORDEN 2 (97.60% MEN, 85.26% WOMEN)	2.49%	2.66	MAPFRE network
- Mod. 517. Group Flexinvida without reimbursement single premium	Longevity	PER2012 COL ORDEN1	PASEM2019 COL ORDEN 2 (97.60% MEN, 85.26% WOMEN)	1.29%	0.06	MAPFRE network
Single or regular premium, individual insurance contracts, where the policyholder bears the investment risk:
- Mod. 447. Dividendo Vida II	Longevity / Death	PASEM 2010 MEN	PASEM2019 IND ORDEN 2 (72.26% MEN, 82.02% WOMEN)		-	MAPFRE network
- Mod. 502. Seguro Puente Garantía	Longevity / Death	PASEM 2010 MEN	PASEM2019 IND ORDEN 2 (72.26% MEN, 82.02% WOMEN)			MAPFRE network
Bankia Mapfre Vida Single premium individual contracts, without profit sharing:
Combined insurance	Longevity: fixed annuity / Death: 103% premium	GRM/F-95	M:109.37%PERP12-Orden2-M / F:105,93%PERP12-Orden2-F	3.62%	-	Bank channel
Combined insurance	Longevity: fixed annuity / Death 105% or 85% or 75% premium	80% PERM 200P / 70% PERF2000P	M:74.75%PASEM2019-Orden2- M / F:70.29%PASEM2019- Orden2-F	3.26%		Bank channel
Combined insurance	Longevity: Life annuity / Death: 105% premium	GRM/F-95	M: 1.09.37%PERP12-Orden2-M / F:105.93%PERP12-Orden2-F	5% - 3%		Bank channel
Single premium group contracts without profit sharing Annuity	Annuity and Reversionary Annuity 102%	PER2012-COL-Orden1.- MF/85% PASEM 2010 MEN	M:100.37%PER2012-COL- Orden2-M / F:97.19%PER2012- COL-Orden2-F	3.27% / 0.82%		Bank channel
Temporary renewable annual and supplementary risk individual contracts without profit sharing:
Protection Insurance	Death / TPD / Accidental Death	Death: 95%PASEM 2010 (V) APD: 90% PEAIM / Acc. Death OM 77	M:91.44%PASEM2019-Orden2- M / F:85.99%PASEM2019- Orden2-F/ 39.12%PEAIMF 7.37 per thousand	0.00%		Bank channel
Protection Insurance	Death / TPD / Accidental Death	Death: 95%PASEM 2010 (V) APD: 90% PEAIM / Acc. Death OM 77	M:91.44%PASEM2019-Orden2- M / F:85.99%PASEM2019- Orden2-F/ 39.12%PEAIMF 7.37 per thousand	0.00%		Bank channel
Protection Insurance	Death	2010 men +40% PASEM 2010 women)	131.67% (60% PASEM M:109.38%PASEM2019-Orden2- M / F:115.51%PASEM2019- Orden2-F	0.00%		Bank channel
Individually handled single premium group contracts, for loan amortization Protection Insurance	Death / APD TPD	Death: 95%PASEM 2010 (V) TPD: 90% PEAIM	M:91.44%PASEM2019-Orden2- M / F:85.99%PASEM2019- Orden2-F/ 39.12%PEAIMF	0.00%		Bank channel
BANKINTER SEGUROS DE VIDA
Single premium individual contracts without profit sharing	Annuity Insurance with counterinsurance	PASEM 2010	124.79% PERP12	1.38%		Bank channel
Single premium individual contracts without profit sharing	Life Protection insurance	PASEM 2010	62.94% PASEM19	0.00%		Bank channel
Regular or single premium individual contracts with profit sharing Ahorro 3649	Guaranteed Savings Insurance	PASEF 2010	Men 67.81% / Women 74% PASEM19	0.35%, 0.30%, 0.25%, 0.275%	1.07	Bank channel
Regular or single premium individual contracts with profit sharing Ahorro 3678	Guaranteed Savings insurance	PASEF 2010	Men 67.81% / Women 74% PASFM19	0.30%	0.18	Bank channel

The first order biometric tables used for pricing and for the calculation of accounting provisions are tables published in the market. The sources of the data used in their calibration, the period of reference, and the technical charges applied are broken down in the corresponding published reports.

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

The second order biometric tables used for solvency calculations are based on the company's own experience in each type of business. The period of reference depends in each case on the volume of data available, varying between 5 and 10 years. It is recalculated annually and the latest update was on September 30, 2019. These tables are "best estimates" and do not include charges for uncertainty or risks.

As a result of the review process of the Mortality tables in Spain that the General Directorate for Insurance and Pension Funds is carrying out, the Group is assessing the new tables published in December 2019, regardless of the fact that the possibility of using tables based on own experience is being analyzed, which would be applied once the required authorization from the General Directorate for Insurance was received, and based on the transitional period that is established.

Other countries

LIFE INSURANCE TECHNICAL CONDITIONS
				Profit sharing
Format	Coverage	Biometric tables	Technical interest	Amount	Distribution
				(million euros)	method
COMPANHIA DE SEGUROS ALIANÇA DO BRASIL
Ouro vida / Ouro vida revisado / BB seguro vida	Death / Disability	AT-49	-	-	Bank channel
Ouro vida 2000 / Ouro vida grupo especial / Ouro vida estilo / BB seguro vida mulher / Other individual Life products	Death / Disability	AT-83	-	-	Bank channel
Other group Life products / Credit Life	Death / Disability	AT-83 and AT-49	-	-	Bank channel / broker
MAPFRE MSV LIFE
Without profit sharing	Death	75% AMC00	Variable	-	Bank channel / broker
With profit sharing	Longevity / Death	75% AMC00	Variable	42.4	Bank channel / broker
Unit-linked	Longevity / Death	75% AMC00	Variable	-	Bank channel broker
MAPFRE COLOMBIA VIDA
Pensiones Ley 100	Longevity / Death /Funeral Assistance	Male/Female annuitants mortality tables (RV08) - Colombian disability mortality table (MI85)	1.50% - 4.00%	n	MAPFRE network
Disablity and Longevity Annuity	Death / Disability / Temporary Disability / Funeral Assistance	Male/Female annuitants mortality tables (RV08) - Colombian disability mortality table (MI85)	1.50%-4.00%		MAPFRE network

3.4. Progression of claims

The following table shows the progression of claims related to Non-Life direct insurance since the year of occurrence until the close of 2019 and 2018. It also shows the breakdown per year of occurrence of the provision for outstanding claims related to this insurance for the two periods.

The English version is a translation of the original in information purposes only. In case of discrepancy, the Spanish version shall prevail.

2019

Year of			Trends in claim costs in the years after year of occurrence
occurrence of claims	ltem	Year of occurrence	1 year later		2 years later 3 years later	4 years later	6 years later	6 years later	7 years later	8 years later	9 years later	More than 9 years later
	Pending provision	7,965.76	3,598.59	2,187.40	1,388.91	968.17	628.14	500.94	406.27	372.73	423.39	308.98
2009 and previous	Cumulative payments	40,672.41	44,604.77	45,797.18	46,533.59	46,992.01	47,259.35	47,389.89	47,529.27	47,617.35	47,776,19	47,876.59
	TOTAL COST	48,638.17	48,203.36	47,984.58	47,922.50	47,960.18	47,887.49	47,890.83	47,935.54	47,990.08	48,199.58	48,185.57
	Pending provision	2,491.85	905.49	515.26	291.36	194.66	147.98	117.92	87.44	79.63	62.67
2010	Curnulative payments	4,780.90	6,313.36	6,668.74	6,924.53	7,026.00	7,087.79	7,169.76	7,191.58	7,220.70	7,252.47
	TOTAL COST	7,272.75	7,218.85	7,184.00	7,215.89	7,220.66	7,235.77	7,287.68	7,279.02	7,300.33	7,315.14
	Pending provision	2,137.16	745.69	474.72	301.70	225.56	163.13	127.89	115.43	82.61
2011	Cumulative payments	4,717.03	6,126.42	6,458.39	6,637.01	6,724.46	6,820.65	6,854.28	6,892.58	6,940.22
	TOTAL COST	6,854.19	6,872.11	6,933.11	6,938.71	6,950.02	6,983.78	6,982.17	7,008.01	7,022.83
	Pending provision	2,311.02	792.28	460.38	312.86	243.54	182.96	157.49	107.57
2012	Cumulative payments	4,401.64	5,864.52	6,219.53	6,394.60	6,511.53	6,574.89	6,618.88	6,667.91
	TOTAL COST	6,712.66	6,656.80	6,679.91	6,707.46	6,755.07	6,757.85	6,776.37	6,775.48
	Pending provision	2,404.31	859.99	522.35	338.18	234.28	191.48	151.73
2013	Cumulative payments	4,657.81	6,211.83	6,610.68	6,827.89	6,917.05	6,994.30	7,059.13
	TOTAL COST	7,062.12	7,071.82	7,133.03	7,166.07	7,151.33	7,185.78	7,210.86
	Pending provision	2,539.48	961.13	546.88	357.19	276.92	228.23
2014	Cumulative payments	4,963.25	6,661.73	7,045.79	7,215.86	7,341.45	7,434.94
	TOTAL COST	7,502.73	7,622.86	7,592.67	7,573.05	7,618.37	7,663.17
	Pending provision	2,688.74	1,043.61	729.46	472.90	326.02
2015	Cumulative payments	5,341.91	7,038.54	7,369.70	7,621.53	7,814.25
	TOTAL COST	8,030.65	8,082.15	8,099.16	8,094.43	8,140.27
	Pending provision	2,862.17	1,309.55	821.96	531.60
2016	Cumulative payments	5,290.84	7,063.04	7,541.33	7,864.50
	TOTAL COST	8,153.01	8,372.59	8,363.29	8,396.10
	Pending provision	3,908.57	2,167.50	1,376.86
2017	Cumulative payments	5,512.89	8,259.55	9,081.33
	TOTAL COST	9,421.46	10,427.05	10,458.19
	Pending provision	4,211.65	2,351.21
2018	Cumulative payments	5,710.52	7,849.63
	TOTAL COST	9,922.17	10,200.84
	Pending provision	3,254.64
2019	Cumulative payments	5,334.67
	TOTAL COST	8,589.31

ures in millions of euros

The increase in 2019 of the cost of claims occurring in 2018 comes primarily from the claim at a hydroelectric dam in Colombia, entirely allocated to reinsurance.

December 31, 2019

						Year of occurrence
ltem	2019	2018	2017	2016	2015	2014	2013	2012	2011	2010	2009 and previous	Total
Provision for outstanding claims Non-Life direct insurance	3,254.64	2,351.21	1,376.86	531.60	326.02 1	228.23	151.73	107.57	82.61	62.67	308.98	8.782.12
W Taxanne of to sectliner of names a

The English version is a translation of the original in information purposes only. In case of discrepancy, the Spanish version shall prevail.

2018

							Trends in claim costs in the years after year of occurrence
Year of occurrence	ltem	Year of
of claims		occurrence	1 year later		2 years later 3 years later		4 years later 5 years later	6 years later		7 years later 8 years later	9 years later	More than 9 years later
	Pending provision	7,951.29	4,027.97	2,462.04	1,604.43	1,114.25	798.05	569.51	478.31	426.18	391.41	332.35
2008 and previous	Cumulative payments	37,281.45	40,830.56	42,209.14	42,910.85	43,365.28	43,627.02	43,795.79	43,874.02	43,939.02	44,054.19	44,119.00
	TOTAL COST	45,232.74	44,858.53	44,671.18	44,515.28	44,479.53	44,425.07	44,365.30	44,352.33	44,365.20	44,445.60	44,451.35
	Pending provision	2,453.78	881.52	521.63	315.25	235.80	162.56	139.35	110.92	88.74	76.07
2009	Cumulative payments	3,730.83	5,072.51	5,386.61	5,565.71	5,651.36	5,716.35	5,759.44	5,813.41	5,835.58	5,857.98
	TOTAL COST	6,184.61	5,954.03	5,908.24	5,880.96	5,887.16	5,878.91	5,898.79	5,924.33	5,924.32	5,934.05
	Pending provision	2,815.09	1,088.29	643.04	373.59	251.53	178.84	140.13	105.99	84.03
2010	Cumulative payments	4,555.28	6,227.04	6,635.03	6,931.56	7,058.66	7,138.26	7,224.63	7,250.37	7,277.20
	TOTAL COST	7,370.37	7,315.33	7,278.07	7,305.15	7,310.19	7,317.10	7,364.76	7,356.36	7,361.23
	Pending provision	2,291.11	818.99	499.91	320.47	237.20	172.18	134.63	121.38
2011	Curnulative payments	4,424.89	5,888.57	6,253.68	6,435.69	6,525.02	6,621.85	6,659.08	6,696.20
	TOTAL COST	6,716.00	6,707.56	6,753.59	6,756.16	6,762.22	6,794.03	6,793.71	6,817.58
	Pending provision	2,490.93	899 95	497.63	329.74	255.91	190.80	163.03
2012	Cumulative payments	4,154.45	5,712.68	6,114.25	6,317.49	6,437.35	6,504.73	6,547.92
	TOTAL COST	6,645.38	6,612.63	6,611.88	6,647.23	6,693.26	6,695.53	6,710.95
	Pending provision	2,554.07	965.26	569.12	361.75	246.44	198.87
2013	Cumulative payments	4,351.47	5,950.93	6,398.03	6,626.42	6,722.14	6,796.34
	TOTAL COST	6,905.54	6,916.19	6,967.15	\$,988.17	6,968.58	6,995.21
	Pending provision	2,721.45	1,046.91	583.42	377.23	285.24
2014	Cumulative payments	4,696.27	6,515.00	6,934.10	7,117.39	7,243.29
	TOTAL COST	7,417.72	7,561.91	7,517.52	7,494.62	7,528.53
	Pending provision	2,848.91	1,127.47	767.26	484.70
2015	Cumulative payments	5,058.99	6,818.06	7,187.10	7,433.70
	TOTAL COST	7,907.90	7,945.53	7,954.36	7,918.40
	Pending provision	3,016.63	1,401.13	841.32
2016	Cumulative payments	5,004.52	6,837.32	7,295.03
	TOTAL COST	8,021.15	8,238.45	8,136.35
	Pending provision	4,087.49	2,215.66
2017	Cumulative payments	5,216.68	7,881.00
	TOTAL COST	9,304.17	10,096.66
	Pending provision	4,292.34
2018	Cumulative payments	5,363.51
	TOTAL COST	ಡಿ '୧୯.୮୮' ಕಿನ

Figures in millions of euros

The increase in 2018 of the total cost of claims occurring in 2017 come primarily from the catastrophic claims from said year (hurricanes in the Caribbean and earthquakes in Mexico), the estimated cost of which for direct insurance increased throughout 2018 by approximately 712 million euros, and which increase is wholly allocated to reinsurance, as the attributable net cost for the Group decreased by approximately 2 million euros between December 31, 2017 and 2018.

December 31, 2018
-------------------	--	--

tem 2008 and 2009 2011 2010 2018 2017 2016 2015 2014 2013 2012 previous		Year of occurrence
												Total
76.07 332,35 84.03 198.87 163.03 121.38 4,292.34 2,215.66 841.32 484.70 285.24 claims Non-Life direct Insurance	Provision for outstanding											9,094.99

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

As shown in the tables above, the overall percentage of claims attributable to ceded reinsurance is 28.01 percent and 35.50 percent for 2019 and 2018, respectively.

Information about the progression in accepted reinsurance claims per year of occurrence is not provided since as a general rule the ceding companies use accounting methods other than the year of occurrence. In accordance with the studies undertaken for accepted reinsurance, the technical provisions are adequate.

6.14. PROVISIONS FOR RISKS AND EXPENSES

The following tables show the movements of provisions for risks and expenses in the last two years.

2019

	Opening	Adjustments to	Changes to the		lm lows	Outflows
tem	balance	the opening balance	scape	Allocated provisions	Increased value on discount	Applied provisions	Reversed provisions	Closing balance

Provision for tax to be paid	312.69	(4.81)	ve	5.31	8.10	(5.01)	-	316.28
Provision for payments of liquidation agreements	21.30	(0.10)		10.02	nu	(15.14)	(1.88)	14.20
Provisions for restructuring	3.65	-	ﻬﻴﻨﻬﺎ	10.51	-	(3.65)	-	10.51
Other provisions for staff-related commitments	200.91	1.54	-	114 31	0.38	(96.14)	(0.44)	220.56
Other provisions	102.94	(6.13)	ﺒﻪ ﻋ	94.81	ਤੋਂ ਤੌਰੇ	(42.25)	(5.02)	147.73

TOTAL	641.49	(ਰੇਡਰ)	t	234.96	11.87	(162.20)	(7.34)	709.28

2018

		Adjustments to			Inflows	Outfows
Opening item balance		the opening balance	Changes to the scope	Allocated provisions	Increased value on discount	Applied provisions	Reversed provisions	Closing balance

Provision for tax to be paid	332.49	(38.70)	(0.04)	22.69	11.24	(4.28)	(10.71)	312.69
Provision for payments of liquidation agreements	16.49	(0.04)	---	17.02	-	(12.17)	-	21.30
Provisions for restructuring	4.11	ﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬﻬ	4 €	3.65	-	(4.11)	ﻴﺔ ﻴﻬ	3.65
Other provisions for staff-related commitments	199.01	4.12	-	97.46	0.01	(99.00)	(0.69)	200.91
Other provisions	109.66	(12.60)	(2.09)	63.08		(37.69)	(17.42)	102.94

TOTAL	661.76	(47.22)	(2.13)	203.90	11.25	(157.25)	(28.82)	641.49

Figures in millions of euros

The provisions for risks and expenses include the estimated amounts of tax debts, settlement agreement payments, restructuring, employee incentives and others derived from the activities and inherent risks of the Group companies, which will be paid in the coming years.

The estimates of the amount provided and the period in which the provisions will be liquidated are affected by uncertainties regarding the ruling on filed appeals and performance of other parameters. It was not necessary to design assumptions regarding future events in order to determine the value of the provision. Potential provision reimbursement is not expected.

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall previl.

Código seguro de verificación (CSV): xIvfjCSHJswnKZUFv5fe	COPIA ELECTRONICA
Esta es una copia auténtica impimble de un documento electrónico archivado por la citiculo 27.3 c) de la Ley 39/2015, de 2 de octubre. Su autenticidad puede ser contrastada a través de la siguiente dirección: https://sede.cnmv/LibreAcceso/CSV.aspx

Additionally, in the case of indications of possible irregularities committed by any Group company, the probability of occurrence and its possible impact are evaluated, and it was not necessary to provision for any of these concepts.

Provision for taxes

This heading includes, at December 31, 2019 and 2018, tax liabilities amounting to 310.76 and 307.42 million euros, respectively, related to the tax contingencies that the Brazilian insurance companies have with the tax authorities in that country, which are being discussed on a judicial and administrative level. These contingencies primarily refer to the taxes known as COFINS (tax contribution used to fund social security) amounting to 273.87 million euros (270.84 million euros at December 31, 2018) and the PS (Social Integration Program) amounting to 6.09 million euros at December 31, 2018). These contingencies have arisen due to discrepancies in the Brazilian government and the business sector regarding the justification of applying said taxes to the companies' turnover.

Further, in Brazil, the Group is currently involved in the following:

Legal proceedings with the tax authorities in connection with the enforceability of the aforementioned COFINS and PIS taxes, regarding non-operating financial income, for the amount of 166.64 and 163.85 million euros at December 31, 2019 and 2018, respectively. The current uncertainty in case law regarding whether the PIS and COFINS calculation base should be extended to include non-operating financial income is noteworthy, as well as the existence of a ruling by the "Procuradoria Geral da Fazenda (the Brazilian General Attorney's Office for the National Treasury) that is favorable to the insurance companies.
Appeal contesting liquidation for the amount of 61.05 million euros, with regard to the inspection act initiated by the tax authority against BRASILSEG COMPANHIA DE SEGUROS, related to corporate tax from 2014, questioning the exemption applied to operating revenue from agricultural insurance.
Appeal contesting the inspection activity initiated by the tax authority against BRASIL VEICULOS COMPANHIA DE SEGUROS (absorbed in 2019 by MAPFRE SEGUROS GERAIS), regarding corporate tax corresponding to the years 2015 to 2017, questioning the deductibility of certain expenses and incentives in the commercial network, as well as the amortization of the goodwill generated in a corporate restructuring prior to MAPFRE's agreement with Banco do Brasil. The tax liabilities included in this action for the abovementioned concepts reaches 100.53 million euros and, in the case of unfavorable resolution, MAPFRE would apply the compensation clause set out in the agreements signed with Banco do Brasil.

Both the Group and its advisors classify the risk of loss as possible in all three cases.

Other provisions

This heading includes, for 2019 and 2018, the contingent payments arising from business combinations, which include the variable part of the business combination that directly depends on the achievement of certain targets linked to the performance of each of the businesses acquired, amounting to 24.40 and 23.51 million euros at December 31, 2019 and 2018, respectively. At each reporting date, the amount of contingent payments with the interest established in the contract is updated in the financial statements, and their permanence is analyzed according to fulfillment of the business plan. Payment would

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

Código seguro de verificación (CSV): xIvfjCSHJswnKZUFv5fe	COPIA ELECTRONICA
Esta es una copia auténtica imprimible de un doumento electrónico por la CNMV, según el artículo 27.3 c) de la Ley 39/2015, de 2 de octubre. Su autenticidad puede ser contrastada a través de la siguiente dirección: https://sede.cnmv.libreAccessolCSV.aspx

occur if the business plan were fulfilled, as of the reference date for the calculation of the Embedded Value, for the financial statements closed at December 31, 2020, in line with the contracts signed with the sellers in each business combination.

6.15. DEPOSITS RECEIVED ON CEDED AND RETROCEDED REINSURANCE

Deposits on ceded and retroceded reinsurance represent guarantees given to reinsurers in line with the reinsurance coverage contracts entered into pursuant to usual business practices. These deposits accrue interest to be paid and the average renewal period is usually quarterly. The liquidation of the aforementioned interest is performed quarterly.

6.16. DEBT

The balances included in the headings "Due on direct insurance operations", "Due on reinsurance operations", "Tax liabilities" and "Other debts" do not accrue payable interest and generally their liquidation is performed in the following year.

6.17. REVENUES AND EXPENSES FROM INVESTMENTS

The breakdown of revenues and expenses from investments for financial years 2019 and 2018 is shown below:

Revenues from investments

	Revenues from investments from:				Financial revenues from other		Total
Item	Operations		Equity		activities
	2019	2018	2019	2018	2019	2018	2019	2018
REVENUES FROM INTEREST, DIVIDENDS AND SIMILAR
Real estate investment							65.17	57.99
Rentals	48.07	42.16	1.52	2.13	15.58	13.70
Other	1.45	31.88	0.01	0.05	1.88	2.33	3,34	34.26
Revenues from the held-to-maturity portfolio
Flxed income	173.51	180.32	1.93	0.86	1.85	1.94	177.29	183.12
Other investments	2.91	1.48	0.20	0.10			3.11	1.58
Revenue from the available-for-sale portfollo:	1,115.58	1,117.69	71.01	128.49	2.68	4.19	1,189.27	1,250.37
Revenue from the trading portfolio:	342.01	315.39	1.04	1.11	6.67	28.26	349.72	344.76
Other financial returns	167.62	172.19	36.95	42.75	6.66	17.81	211.23	232.75

TOTAL REVENUE	1,851.15	1,861.11	112.66	175.49	35,32	68.23	1,999.13	2,104.83
REALIZED AND UNREALIZED GAINS

Net realized gains:	9.27	25.64	0.40	0.35	2.67	6.32	12.34	32.32
Real estate investment					6.27	7.85	625.64	247.55
Financial investments available for sale portfolio	577.21	221.55	42.16	18.15
Financial investments trading portfollo	1.07.22	21.04	10.56	4.03	0.29	0.07	118.07	25.14
Other	0.39	0.69	6.44	15.98	0.01	0.06	6.84	16.73
Unrealized gains:
Increase in fair value of the trading portfolio and earnings from derivatives	208.94	39.57	58.90	0.02	0.14	0.02	267.98	39.61
Other	9.02	6.49			2.95	0.03	11.97	6.52

TOTAL GAINS	912.05	314.98	118.46	38.54	12,33	14.35	1,042.84	367.87
TOTAL REVENUES FROM INVESTMENT	2,763.20	2,176.09	231.12	214.03	47.65	82.58	3,041.97	2,472.70

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

Expenses from investments

	Expenses from investments from:				Financial expenses from other		Total
Rem	Operations		Equity		activities
	2019	2018	2019	2018	2019	2018	2019	2018
FINANCIAL EXPENSES
Real estate investment
Direct operational expenses	21.85	23.01	. .		0.61		22.46	23.01
Other expenses	2.75	4.69	0.15	0.04	8.52	8.45	11.42	13.18
Expenses from held-to-maturity portfolio
Fixed Income	3.76	0.93	0.02	0.01	-	VA	3.78	0.94
Other investments	0.67	1.73				-	0.67	1.73
Expenses from the available for sale portfolio	145.36	110.79	48.11	29.71	0.36	1.22	193.83	141.72
Expenses from the trading portfolio:	157.41	153.37	-			0.40	157.41	153.77
Other financial expenses	165.74	148.81	3.00	2.97	77.46	74.48	246.20	226.26

TOTAL EXPENSES	497.54	443.33	51.28	32.73	86.95	84.55	635.77	560.61
REALIZED AND UNREALIZED LOSSES
Net realized fosses
Real estate investment	5.28	5.70			---	0.05	5.28	5.75
Financial Investments available for sale portfolio	108.39	72.51	5.63	5.88	0.25	0.58	114.27	78.97
Financial investments trading portfolio	48.37	37.49	2.32	4.36	0.86	++	51.55	41.85
Other	4.32	3.54	0.06	12:50		0.06	4.38	19.10
Unrealized losses
Decrease in fair value of trading portfolio and losses in derivatives	47.43	147.34	21.87	સ્ત્રે નવ્યુવ	-	--	69.30	181.78
Other	0.08	0.91		-	0.13	0.05	0.21	0.96

TOTAL LOSSES	23.37	267.49	29.88	60.18	1.24	0.74	244.99	328.41
TOTAL EXPENSES FROM INVESTMENT	711.41	710.82	81.16	92.91	88.19	85.29	880.76	889.02

es in millions of ouro

A large part of profits and losses, both realized, correspond to assets related to mathematical provisions (see Note 6.13), and as such both effects are compensated on the income statement.

The expenses arising from investment portfolios mainly stem from financial swaps related to insurance operations.

6.18. OPERATING EXPENSES

A breakdown of net operating expenses by purpose and nature, for the last two financial years, is shown below.

Operating expenses by purpose

item	2019	2018

Claims-related expenses	814.51	815.84
Acquisition expenses	5,020.14	4,810.80
Administration expenses	723.89	745.58
Expenses from investments	792.57	803.73
Other technical expenses	155.11	139.12
Other non-technical expenses	165.24	149.69
Operating expenses from other activities	515.72	401.62
TOTAL	8,187.18	7,866.38

The English version is a translation of the original in information purposes only. In case of discrepancy, the Spanish version shall prevail.

Operating expenses by nature

ltem	2019	2018

Commissions and other portfolio expenses	3,957.07	3,812.37
Personnel expenses	1.761.37	1,729.03
External services
- Leasing (shops and buildings)	35.14	94.16
- Repairs and upkeep (shops and buildings)	79.40	74.80
- Leasing and repairs (computer equipment)	33.76	64.11
- Leasing and repairs (computer applications)	159.26	184.51
- Other services (computer applications)	221.98	149.34
- Supplies (communications)	30.67	21.11
- Advertising and marketing	172.36	170.98
- Public relations	48.24	45.25
- Independent professional services	180.55	146.19
- Other services	361.27	365 99
Taxes	185.05	193.51
Provision for amortization	330.44	274.18
Expenses posted directly to purpose	630.62	540.85

TOTAL	8,187.18	7,866.38

The income statement reflects expenses by purpose, i.e., based on the function the expenses fulfill in the operational cycle of the insurance activity (claims-related expenses, the acquisition of insurance contracts, administration, investments or other technical items).

Expenses are initially recognized according to their nature, and are reclassified according to their purpose in those cases in which the nature and purpose are not the same. The reclassification performed in the following subject headings is as follows:

1) Claims-related expenses. Includes expenses for personnel assigned to claims management, amortization and depreciation of fixed assets assigned to this activity, fees paid for claims management and expenses incurred for other services necessary for processing claims.
2) Net operating expenses. Included in this heading are:
- Acquisition expenses. Includes commissions, expenses for personnel assigned to production, amortization and depreciation of fixed assets assigned to this activity, expenses for analyzing and processing policy applications and formalizations, as well as advertising, publicity and commercial organization expenses directly related to the acquisition of insurance contracts.
- Administration expenses. These primarily include expenses for personnel assigned to these
  functions and amortization and depreciation of fixed assets assigned to this activity, as well as expenses deriving from contentious matters related to premiums, from processing refunds and from ceded and accepted reinsurance.
- Commissions and participations in reinsurance. Includes compensation from reinsurers to the ceding companies for acquisition and administration expenses incurred by the latter, as well as their participation in the profits of the reinsurer.

The English version is a translation of the original in information purposes only. In case of discrepancy, the Spanish version shall prevail.

3) Investment expenses. Includes expenses for personnel assigned to managing investments, charges to amortization and depreciation allowance for fixed assets assigned to this activity, and other internal and external expenses for managing investments, with external expenses including fees, commissions and brokerage fees accrued.

Expenses from investments are classified as from operations or from equity depending on whether they derive from investments corresponding to technical provisions (operating investments) or from investments corresponding to the company's equity (equity investments).

6.19. RESULT FROM CEDED AND RETROCEDED REINSURANCE

The result from ceded and retroceded reinsurance for years 2019 and 2018 is the following:

Item		Non-Life	Life			Total
	2019	2018	2019	2018	2019	2018
Premiums	(3,959.55)	(3,206.04)	(177.80)	(168.30)	(4,137.35)	(3,374.34)
Change in the provision for uneamed premiums and unexpired risks	386.29	(155.90)	0.61	(2.81)	386.90	(158.71)
Claims paid and change in the provision for claims	2,371.10	3,587.13	104.49	89.93	2.475.59	3,677.06
Change in mathematical provision and other technical provisions	-	5.39	(2.16)	(15.63)	(2.16)	(10.24)
Participation of reinsurance in commissions and expenses	600.68	531.57	35.11	36.09	635.79	567.66
Result of ceded and retroceded reinsurance	(601.48)	762.15	(39.75)	(60.72)	(641.23)	701.43

The decrease in "Claims paid and change in the provision for claims" in 2019 for ceded and retroceded reinsurance is due to the increase last year in provisions for the catastrophic events occurring in 2018 and 2017 (see note 6.13). The 2018 events include, significantly, the impact of a claim at a hydroelectric dam in Colombia, for the amount of 1.025 billion euros, which did not have a relevant effect on the "Result for the period attributable to controlling company" in said year because of the participation of reinsurance.

6.20. FISCAL SITUATION

Fiscal consolidation regulations

0 Tax on profits

Since the financial year 1985, some of the consolidated companies with registered offices in Spain have been included for corporate tax purposes in Fiscal Group is made up of the controlling company and those of its subsidiaries that are eligible for this tax regime. A list of the main subsidiaries included in this fiscal Group in 2019 is provided in Annex 2 of this report.

The English version is a translation of the original in information purposes only. In case of discrepancy, the Spanish version shall prevail.

Código seguro de verificación (CSV): xlvfjCSHJswnKZUFv5fe	COPIA ELECTRÓNICA
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Value Added Tax ক

Since the financial year 2010, and for the purposes of value added tax, some of the consolidated companies with a registered address in Spain have been included in the VAT Group 87/10, formed by MAPFRE S.A. as the controlling company and those of its controlled companies that agreed to join the Group when it was created. A list of the main subsidiaries that form part of this Group in 2019 is provided in Annex 2 of this report.

Components of tax on profits expenses and reconciliation of the accounting profit with the tax cost for ongoing activities

The main components of the tax on profits expenses from ongoing activities and the reconciliation between the tax on profits expenses and the result of multiplying the accounting profit by the applicable tax rate for the financial years ending December 31, 2019 and 2018 are shown below. The Group has reconciled the amounts by aggregating reconciliations made separately using the national rates of each country.

ltem	Amount
		Year 2018
Tax expense
Result before taxes from ongoing operations	1,279.29	1,330.46
25 percent of result before taxes from ongoing operations	319.82	332.62
Tax effect of the permanent differences	(22.43)	(44.29)
Tax incentive for the financial year	(20.20)	(25.80)
Tax effect of tax rates other than 25 percent	72.67	166.28
Total expense from current tax originating in the financial year	349.86	428.81
Expense from current tax originating in previous years	(25.83)	24.13
Receivables from negative taxable income not recognized from previous periods, deductions pending application or temporary differences
TOTAL TAX EXPENSES OF ONGOING OPERATIONS	324.03	452.94
Tax on profits to be paid
Withholdings and advance payments	(427.34)	(404.90)
Temporary differences and currency conversion differences	21.96	(29.32)
Tax receivables and incentives applied, registered in previous years	(13.20)	(44.37)
Tax on earnings for discontinued operations
TOTAL TAX ON PROFITS TO BE PAID (RECEIVABLE) ORIGINATING IN THE YEAR	(94.55)	(25.65)
Tax on profits receivable from previous financial years	(49.79)	(36.26)
NET TOTAL TAX ON PROFITS TO BE PAID {RECEIVABLE} 200 may 2815 m mas 10 6 m = 10 carded	(144.34)	(61.91)

Deferred tax assets and liabilities

At December 31, 2019 and 2018 deferred tax assets and liabilities were shown on the consolidated balance sheet for the net amount corresponding to each of the Group's tax-paying companies. They currently stand as follows:

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

Código seguro de verificación (CSV): xlvfjCSHJswnKZUFv5fe	COPIA ELECTRÓNICA
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Item	2019	2018
Deferred tax assets	306.97	333.58
Deferred tax liabilities	(703.11)	(499.32)
Asset (Liability) net	(396.14)	(165.74)

Figures in millions of euros

In addition to the deferred tax assets recorded in 2019 and 2018, shown in the above table, there are other deferred tax assets deriving from tax loss carryforwards pending offset, amounting to 29.66 and 32.40 million euros, respectively. These assets were not recognized, in accordance with the criteria established under EU-IFRS.

The following tables show the movements in the net balance of deferred taxes in the financial years 2019 and 2018, with a breakdown of the amounts related to items directly debited or credited to equity accounts in each financial year.

2019

		Adjustments to	Changes to the	From		Settled	Closing balance
ltem	Opening balance the opening balance		scope	Results	Equity
Portfolio acquisition expenses and other acquisition expenses	(264.35)	8.06	(17.85)	19.76	-	--	(254.38)
Valuation difference in financial investments	(1,016.13)	(8.45)	(1.85)	108.77	(609.18)	ﺐ	(1,526,84)
Other comprehensive revenue and expenses	(17.44)	(0.06)	na	5.04	-	0.23	(12.23)
Valuation difference in mathematical provisions by shadow accounting	867.76	(3.09)	-+	(64.58)	333.30	-	1,133,39
Stabilization and catastrophe provision	(168.10)	4.74	-	(19.55)	-	8.27	(174.64)
Other technical provisions	72.73	0.92	0.43	(10.15)	-	***	63.93
Tax receivables on negative taxable income	221.07	(13.87)	ﺳﺐ	67.32	사이	(13.20)	261.32
Receivables on tax incentives	11.96	--	-	20.20	--	(20.62)	11.54
Pension supplements and other staff-related commitments	48.11	1.94	0.01	7.87	---	(2.24)	55.69
Provisions for uncollected premiums	19.04	0.36	-	7.17	-	(6.86)	19.71
Provisions for liabilities and others	43.80	0.93		10.87	-	(4.05)	51.55
Tax receivables derived from PIS, COFINS and REFIS (Note 6.15)	-	ﺐ ﺏ	vu	1.12	4.86	-	5.98
Other items	15.81	(4.75)	0.02	(39.63)	-	(2.61)	(31.16)

TOTAL	(165.74)	(13.27)	(19.24)	114.21	(271.02)	(41.08)	(396.14)

Igures In millons of euros

The English version is a translation of the original in information purposes only. In case of discrepancy, the Spanish version shall prevail.

item	Opening balance	Adjustments to the opening	Changes to the	From		Settled	Closing balance
		balance	scope	Results	Equity
Portfolio acquisition expenses and other acquisition expenses	(315.10)	26.92	ﺐ	23.83	nu	t	(264.35)
Valuation difference in financial investments	(1,196.78)	(25.73)	▲▲	35.80	150.17	20.41	(1,016.13)
Other comprehensive revenue and expenses	(16.30)	(0.36)	-	(1.56)	-	0.78	(17.44)
Valuation difference in mathematical provisions by shadow accounting	931.29	10.24	-	(5.13)	(58.21)	(10.43)	867.76
Stabilization and catastrophe provision	(156.29)	(5.66)	-	(19.15)	un	13.00	(168.10)
Other technical provisions	70.35	2.64		(0.26)	nu		72.73
Tax receivables on negative taxable income	68.11	(7.96)	(2.03)	190.20	ﻬﺪﻳﻌﺔ	(27.25)	221.07
Receivables on tax incentives	27.79	1.29	-	25.81	---	(42.93)	11.96
Pension supplements and other staff-related commitments	51.39	(5.37)	(0.52)	4.43	ﻠﻴﺐ ﺍﻟﻤﺴﺎﺣﺔ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍ	(1.82)	48.11
Provisions for uncollected premiums	19.01	(0.51)	vu	6.76	ﺳﻨﺔ	(6.22)	19.04
Provisions for liabilities and others	38.01	3.77	-	6.00	-	(3.98)	43.80
Tax receivables derived from PIS, COFINS (Note 6.15)	139.81	(14.78)	-	(149.23)	ﻤﺮﺣﻠ	-	(24.20)
Other items	47.48	(19.23)	(0.11)	9.71	-	2.16	40.01
TOTAL	(291.23)	(34.74)	(2.66)	127,21	91.96	(56.28)	(165.74)

Flaures in millions of earns

The Results column in 2018 includes a transfer from Tax receivables from PIS, COFINS and REFIS to Tax receivables for negative taxable income for the amount of 132.28 million euros.

At the close of 2019, deferred tax assets and liabilities maturing in less than 12 months amounted to 54.35 and 50.34 million euros, respectively (52.82 and 50.07 million euros, respectively, in 2018).

Negative taxable income

The negative taxable income pending offset in fully consolidated companies at the last two periods is shown below:

	Amount of negative tax bases			Deferred tax assets
Year generated	Applied in the financial year		Pending application		Amount recognized		Amount not recognized
	2019	2018	2019	2018	2019	2018	2019	2018
2011 and previous	0.71		12.78	17.74	1	0.08	2.65	3.74
2012			8.42	8.28			1.72	1.70
2013	11.84	6.96	240.19	253.46	93.00	98.99	1.85	1.11
2014	5.82	10.03	12.29	10.13	0.13	0.02	2.64	2.14
2015	3.83	5.56	26.70	32.36	5.84	5.32	2.45	3.87
2016	5.05	35.57	162.51	165.97	47.69	47.78	4.25	5.56
2017	8.29	40.51	116.70	90.23	25.57	13.74	8.45	7.17
2018	14.75	***	252.83	158.03	77.85	55.14	3.91	7.11
2019			60.72		11.25		1.74	-
Total	50.29	98.63	893.14	736.20	261,33	221.07	29.66	32.40

Figures in millions of euros

The English version is a translation of the original in Spanish for information purposes only. In espanish version shall prevail.

Código seguro de verificación (CSV): xlvfjCSHJswnKZUFv5fe	COPIA ELECTRÓNICA
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ਉਤੇ

Assets recognized in relation to deferred taxes on negative tax bases pending offset in consolidated companies represent negative tax bases generated as a result of unusual management events, and future tax profits are likely to exist against which thev mav be offset.

The booked amounts of deferred tax assets generated in 2013 and 2016 include the transfer from the abovementioned Tax receivables from PIS, COFINS and REFIS, for the amount of 98.99 and 33.29 million euros, respectively.

Tax incentives

The tax incentives of the fully consolidated companies for 2019 and 2018 are as follows:

	Amount applied in the financial year		Amount pending application		Amount not recorded
Module	2019	2018	2019	2018	2019	2018
Double taxation deduction	6.56	7.45	re	000
Creation of employment	Serva	NT ST	-	----
Other	14.06	35.48	23.5	11.96	11.96
Total	20.62	42.93	23.50	11.96	11.96

The consolidated tax group no. 9/85 made use in previous years of the reduction for capitalization reserve contemplated in Article 25 of the Corporate Income Tax Act 27/2014, giving rise to a decrease in the consolidated tax payable each year.

To enjoy this tax benefit, there must be an increase in shareholders' equity in the period and this increase must be maintained for a period of five years, and a reserve must be created equivalent to the amount of the reduction, equivalent to at least 10 percent of said increase and which will be restricted for the same fiveyear period.

The breakdown of increases in shareholders' equity and allocated reserves in the last periods, subject to maintenance requirement, is as follows:

Year	Increase in Shareholders' Equity	Restricted reserve

2015	324.90	35.00
2016	94.70	12.00
2017	18.57	1.86

Figures in millions of euros

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

ਉਪ

Verification by tax authorities

In Spain, checks and verifications begun in 2017 are still being carried out regarding MAPFRE, S.A., MAPFRE ESPAÑA, MAPFRE VIDA, MAPFRE INTERNACIONAL, MAPFRE RE, MAPFRE ASISTENCIA, MAPFRE GLOBAL RISKS, and other Group subsidiaries regarding Corporate Tax for the financial years 2013 to 2016, and other taxes from the financial years 2014 to 2016.

In 2019 and to date in said activities, notices of partial conformity have been presented regarding retentions and income against Personal Income Tax, cancelling a fiscal debt for various aspects of individual work remuneration (primarily, regarding the exemption from compensation for dismissal and for irregular income reduction).

The verification activity underway regarding other taxes is in the final phase, having brought before Inspection the next notices and the main concepts that are expected to be the focus of regularization and which will liquidate the corresponding fiscal debt (primarily related to the deductibility of technical provisions, the deductibility of personal expenses, brand right of use, compensation for tax loss carryforwards, deductions for technological innovation activity, and exemption of Spanish subsidiary dividends, this last regularization favorable to the Group and accepted by the Inspection in the course of the activity). Based on the information available at the accounts were prepared, the proceedings corresponding to partial conformity are also expected to be accepted.

Additionally, in 2019, inspection activity carried out in relation to FUNESPAÑA and some of its subsidiaries with regard to Corporate Tax and other taxes for the years 2013 and 2014 has been finalized, with notices signed in agreement.

Regarding fiscal debt being disputed resulting from verification activity, MAPFRE considers, based on the criteria of its fiscal advisors, that there are solid defense arguments in the administrative and legal proceedings, and as such it has not recorded provisions for them.

In accordance with current legislation, the statements made for the different taxes may not be considered final until they have been inspected by the tax authorities or until the statute of limitations has passed (four years for Spanish companies).

In some remaining consolidated companies there are ongoing verifications with tax authorities; the amounts subject to discussion in these verifications are not significant.

At December 31, 2018 the view of the Directors and advisors of the consolidated companies regarding the possibility of tax liabilities arising and significantly affecting the financial position of the consolidated companies was remote.

The English version is a translation of the original in information purposes only. In case of discrepancy, the Spanish version shall prevail.

6.21 REMUNERATION FOR EMPLOYEES AND ASSOCIATED RETIRED EMPLOYEES

Personnel expenses

The personnel expenses breakdown for the last two years is shown in the table below:

	Amount
ltem	2019	2018

Short-term remuneration
Wages and salaries	1,251.13	1,257.80
Social security	256.97	237.15
Other remuneration	153.63	163.97
Post-employment benefits	38.16	36.90
Other long-term remuneration	8.81	(3.63)
Termination payments	52.67	36.84

TOTAL	1,761.37	1,729.03

Figures in millions of euros

Main post-employment benefits

Defined benefit plans

The commitments from defined benefit plans still on the balance sheet correspond exclusively to retired employees. The most relevant of the plans are instrumented through insurance policies, are measured pursuant to the provisions described in the accounting policies.

In relation to the amounts recognized on the balance sheet, the obligations regarding defined benefit plans amounted to 43.47 and 44.63 million euros at December 31, 2019 and 2018, respectively, fully externalized through written policies with MAPFRE VIDA. Consequently, no assets allocated to these plans are recognized and the liability recognized on the consolidated balance sheet is recorded under the heading "Provisions for life insurance".

There are also obligations relating to pension commitments, externalized through allocated insurance policies, amounting to 12.11 and 12.40 million euros at December 31, 2019 and 2018, respectively. These amounts coincide with the value of the assets allocated to the plan.

The main actuarial hypothesis used at the close of the last two years have been the following: PERM/F-2000 mortality tables, annual CPI of 3 percent in both years, with identical discount rates and expected returns of the related assets as the products have matched flows.

The net effect on equity and results of the actuarial loss and gains, interest expenses and return of the assets allocated to the plan is null, as the amounts corresponding to commitments and the assets allocated to the plan or reimbursement right are netted.

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Sparish version shall prevail.

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Other medium-term remuneration and share-based payments

In 2019, the Board of Directors approved a new medium-term incentive plan valued and recognized in the consolidated income statement in line with the valuation rule in Note 5.19 "Personnel expenses". No amounts for this concept were provisioned, as the established objectives were not reached.

In 2019 the previous medium-term incentive plan approved in 2016 was partially cancelled, with payment of 1.06 million euros in cash and 1.24 million euros in equity instruments pending until the 2020-2022 period, which are included in liabilities and equity, respectively, at December 31, 2019 (4.92 and 4.49 million euros, respectively, at December 31. 2018, lower expenses were recorded for this item, for the amount of 11.51 million euros, and the number of shares related to this incentive plan reached 2,295,522.

Number of employees

The following table shows the average number and final number of employees for the last two years, classified by category and gender, and distributed by segment.

· Average number of employees:

ﻟﺘﺄﻟﻴﻔﺔ ﺍﻟﻤﻜﺘﺐ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪ
Segment Men	Board of Directors and Senior Management		Management		Technicians		Administrative staff		Total
		Women	Men	Women	Men	Women	Men	Women	Men	Women
IBERIA	6	ﺒﻬﺎ ﻣﻬ	1,154	ਟੋਤ ਦੇ	2.763	2,617	રેસ્ટેટ	1,873	4,588	5,025
LATAM NORTH	ട	3	295	278	769	785	295	441	1,364	1,507
LATAM SOUTH	7	2	417	303	1.168	1,085	573	773	2,165	2,163
BRASIL	3	----	313	223	1,074	1,727	୧୦୦	1,346	1,999	3,296
NORTH AMERICA	3	ﺤﻀ	285	302	632	1,014	200	647	1,120	1,963
EURASIA	6	1	284	240	774	833	387	୧୫8	1,451	1,762
ASISTENCIA	na	2	391	236	544	541	1,045	1,715	1,980	2,494
GLOBAL RISKS	1.	n.r	ਤੇ ਵੇ	21	હતે	74	4	19	109	114
REINSURANCE	2	ten	દિ	34	144	148	8	37	219	219
CORPORATE AREAS	21	4	212	ਰੇ ਹੋ	384	282	21	84	୧38	469
Average total number of employees	ટેવો	12	3,451	2,271	8,321	9,106	3,807	7,623	15,633	19,012

2018

Segment	Board of Directors and Senior Management		Management		Technicians		Administrative stat		Total
	Men	Women	Men	Women	Men	Women	Men	Women	Men	Women
IBERIA	5	***	1,146	564	2,742	2,494	677	1,837	4,570	4,895
LATAM NORTH	5	2	294	275	766	744	338	461	1,403	1,482
LATAM SOUTH	ნ	2	432	295	1,203	1,092	604	803	2,245	2,192
BRASIL	----	-	378	261	898	2,024	814	1,218	2,090	3,503
NORTH AMERICA	di	***	296	300	671	1,091	226	દર્વતું	1,197	2,094
EURASIA	4	--	239	208	657	794	552	772	1,452	1,774
ASISTENCIA	2	1	406	268	577	566	1,210	1,905	2,195	2,740
GLOBAL RISKS	2	ﺒﻪ ﻓﻬ	પર્ણ	20	ਰੇਤ	ਰੇਤੇ	4	26	147	। ਤਰ
REINSURANCE	2	ana	ડિ	32	119	127	12	37	189	196
CORPORATE AREAS	19	2	215	ਰੇ 8	416	289	23	વે 3	673	482
Average total number of AMAR HAMAA	ਕਰੇ	7	3,508	2,330	8,144	9,314	4,460	7,846	16,161	19,497

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

• Number of employees at the end of the year:

	Board of Directors and Senior
Segment	Management		Management		Technicians		Administrative staff		Total
	Men	Women	Men	Women	Men	Women	Men	Women	Men	Women

IBERIA	6	ww	1,154	544	2,768	2,644	670	1,874	4,598	5,062
LATAM NORTH	5	3	311	286	746	781	291	431	1,353	1,501
LATAM SOUTH	7	2	435	343	1,107	1,019	રેસે સિસ્ટેન્ડ	746	2,105	2,110
BRASIL	3	-	317	235	1,017	1,680	687	1,435	2,024	3,350
NORTH AMERICA	4	----	281	289	623	962	192	ਦੌਤਰ	1,100	1,890
EURASIA	6	1	274	237	764	857	રૂદર	ਟਰੇਰ	1,409	1,694
ASISTENCIA	ﺼﺼ	2	422	279	510	482	1,002	1,652	1,934	2,415
GLOBAL RISKS	1	ﺴ	ਤੇਤੇ	24	61	67	2	18	97	109
REINSURANCE	2	**	67	33	147	157	8	36	224	226
CORPORATE AREAS	20	4	216	100	390	291	21	81	647	476

Total number of employees	54	12	3,510	2,370	8,133	8,940	3,794	7,511	15,491	18,833

2018

Segment	Board of Directors and Senior Management		Management		Technicians		Administrativa staff		Total
	Men	Women	Men	Women	Men	Women	Men	Women	Men	Women

IBERIA	5	---	1,138	557	2,757	2,535	679	1,867	4,579	4,959
LATAM NORTH	5	2	326	302	756	750	318	454	1,405	1,508
LATAM SOUTH	7	2.	462	360	1,148	1,029	598	802	2,215	2,193
BRASIL	ment	ﺳﯿﻪ	413	312	842	1,933	787	1,265	2,042	3,510
NORTH AMERICA	4	ﻌﻬﺪ ﺍ	302	337	648	1,067	219	678	1,173	2,082
EURASIA	4	ﺴﺐ	258	224	648	786	ਟੇ ਕੇ ਰੋ	761	1,459	1,771
ASISTENCIA	1	1	497	336	457	459	1,121	1,830	2,076	2,626
GLOBAL RISKS	2	eeaa	42	20	87	89	4	25	135	134
REINSURANCE	2	**	દર્દ	32	127	129	11	37	195	198
CORPORATE AREAS	21	2	212	97	ਤੋਰੇਪ	296	21	91	644	૫૪૯

Total number of employees	51	7	3,705	2,577	7,860	9,073	4,307	7,810	15,923	19,467

The following table shows the number of employees in Spain with a degree of disability equal to or higher than 33 percent at the close of the last two years and the average during those years, indicating the categories to which they belong:

	2019		2018
ltem	Year-end close	Average	Year-end close	Average
Management	14	13	11	12
Technicians	100	ਰੇਡ	તે કે રે	તેરિ
Administrative staff	89	90	ਰੇਤੇ	90
Total	203	201	199	198

The English version is a translation of the original in Information purposes only. In case of discrepancy, the Spanish version shall prevail.

6.22. EARNINGS ON FOREIGN EXCHANGE DIFFERENCES

Foreign exchange gains other than those arising from financial instruments measured at fair value, allocated to the consolidated income statement, amounted to 1.59 billion and 959.39 million euros in 2018, respectively.

Negative foreign exchange differences other than those arising from financial instruments measured at fair value, allocated to the consolidated income statement, amounted to 1.59 billion and 946.70 million euros in 2019 and 2018, respectively.

The settlement of the currency conversion differences recognized in equity at the beginning and end of the year in 2019 and 2018 is shown below.

	Amount
Description	2018 2019
FOREIGN EXCHANGE DIFFERENCES AT THE BEGINNING OF THE YEAR	(737.90)	(730.70)
Net foreign exchange differences on valuation of non-monetary items	0.38	1.59
Net foreign exchange differences on conversion of financial statements	35.31	(8.79)
FOREIGN EXCHANGE DIFFERENCES AT THE END OF THE YEAR	(702.21)	(737.90)

At December 31, 2019 and 2018 the net foreign exchange differences arising from the translation into euros of the financial statements of those Group companies whose functional currency is not the euro were as follows:

		Currency conversion differences
Company/Subgroup	Geographic Area	Gains		Losses		Net
		2019	2018	2019	2018	2019	2018
Companies consolidated by global Integration:
MAPFRE RE	Europe, America and rest of world	22.48	21.88	(29.49)	(26.67)	(7.01)	(4.79)
MAPFRE INTERNACIONAL	Europe, America and rest of world	488.30	439.20	(1,123.56)	(1,109.04)	(635.26)	(669.84)
OTHER	***	28.98	27.54	(72.19)	(73.70)	(43.21)	(46.16)
TOTAL		539.76	488.62	(1,225.24)	(1,209.41)	(685.48)	(720.79)

Figures in millions of euros

6.23. CONTINGENT ASSETS AND LIABILITIES

At the end of 2019 and 2018, and at the time of preparing these consolidated annual accounts, there was no evidence of the existence of contingent assets and liabilities for significant amounts, other than those disclosed in these notes.

વેત

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

6.24. BUSINESS COMBINATIONS

In 2019, MAPFRE and Bankia reached an agreement to restructure their bancassurance alliance, through the acquisition of 51 percent of the share capital of the insurance entities CAJA GRANADA VIDA, and CAJAMURCIA VIDA for a total consideration of 110.3 million euros, which will make it possible to notable increasing MAPFRE Life insurance distribution in the southeast of Spain. Additionally, in the first half of 2019, 50.01 percent of the company SANTANDER GLOBAL was acquired for a consideration of 82.27 million euros, which will make it possible to exclusively distribute Auto, Commercial Multirisk, SME Multirisk and TPL insurance in the Banco Santander network in Spain.

The table below shows the fair value of the identifiable assets and liabilities related to the acquisition of these businesses:

ITEM	caja Granada VIDA	CAJAMURCIA VIDA	SANTANDER GLOBAL
ASSETS
Portfolio acquisition expenses and other intangibles	30.46	40.96	6.80
Investments	235.67	127.43	11.33
Receivables	0.53	0.36
Cash	4.47	12.32
Other assets	0.42	0.68
TOTAL ASSETS	278.78	184.80	18.13
LIABILITIES
Technical provisions	193.40	118.04
Deferred tax liabilities	13.78	11.64
Debt	12.47	5.80	6.80
Other Liabilities	0.92	0.50
TOTAL LIABILITIES	220.57	135.98	6.80
Fair value of net assets	58.21	48.82	11.33
Interest acquired	51%	51%	50%
Fair value of the percentage of net assets acquired	79.69	24.90	5.67
First consolidation difference	32.07	23.65	76.60
Business combination costs	61.76	48.55	82.27

Figures in millions of euros

The fair values of the abovementioned business combinations are provisional as the adequate identification rnd determination of such is currently being studied, based on projections that are under review.

The above stated fair values differ from the book values of the company prior to the combination, mainly ric above stated fair ratues and corresponding tax liabilities, which are not recorded on their books.

The net acquisition costs of all the combinations in 2019 have been met in full, and at December 31, 2019 there were no outstanding amounts pending payment.

100

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

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The expenses directly attributable to the abovementions, corresponding to independent professional, legal and financial advisory fees, were not material and were recorded as expenses in the consolidated income statement.

The dates that the aforementioned combinations were incorporated into the consolidated group in the first half of 2019 were March 1, 2019 for the entities CAJA GRANADA VIDA and CAJAMURCIA VIDA, and June 30, 2019 for SANTANDER GLOBAL. Said business combinations contributed, in the period, 28.24 million euros to the Group's premiums, and 3.60 million euros to the net result attributable to the controlling company. If these combinations had taken place at the beginning of 2019, it would have contributed 37.45 million euros to the Group's premiums, and 4.71 million euros to the net result attributable to the controlling Company.

The business combinations with an insignificant cost that took place during 2019 and 2018 are listed in Annex 1.

6.25. TRANSACTIONS WITH RELATED PARTIES

All transactions with related parties have been conducted under market conditions.

In addition to the transactions described in the other notes accompanying the consolidated annual accounts, the balances and transactions between Group companies are explained below.

Operations with Group companies

The operations conducted between Group companies, with a zero effect on results because they have been eliminated in the consolidation process, are shown below:

ltem	2019	2018
Received/provided services and other expenses/revenue	499.73	547.50
Expenses/revenue from real estate investment	24.22	24.42
Expenses/revenues from investments and financial accounts	23.36	25.93
Dividends distributed	1,668.71	1,826.36

Figures in millions of euros

Reinsurance and co-insurance operations

Reinsurance and co-insurance activities conducted between Group companies, which have been eliminated in the consolidation process, are shown below:

101

The English version is a translation of the original in information purposes only. In case of discrepancy, the Spanish version shall prevail

Código seguro de verificación (CSV): xIvfjCSHJswnKZUFv5fe	COPIA ELECTRÓNICA
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ltem	2019	2018
Ceded/accepted premiums Benefits and services Changes in technical provisions	2,741.68 1,536.20 319.23	2,120.20 1,955.02 (79.73)
Commissions	481.26	437.99

ures in millions of

The following table shows the balances with reinsurers and ceding companies, deposits given, and technical provisions on reinsurance activities with Group companies, all of which have been eliminated in the consolidation process:

ltem	2019	2018
Receivables and payables	320.14	464.20
Deposits	56.69	81.25
Technical provisions	3,113.39	2,728.75

Figures in millions of euros

Information related to controlled companies

The following table shows the dividends distributed by the controlled companies with significant noncontrolling interests and the result for the period of these individually considered companies (prior to intercompany eliminations), attributable to the non-controlling interests:

	Dividends distributed
Controlling company Controlled company			Non-controlling company		Earnings attributable to non-controlling interests
	2019	2018	2019	2018	2019	2018
BB MAPFRE PARTICIPAÇOES, S.A.	90.24	81.82	270.41	246.14	284.72	269.35
BANKIA MAPFRE VIDA, S.A. DE SEGUROS Y REASEGUROS	54.63	97.51	52.49	93.86	47.47	39.05
MAPFRE RE COMPAÑÍA DE REASEGUROS, S.A.	67.93	92.62	4.92	7.79	3.26	10.92
BANKINTER SEGUROS DE VIDA, S.A.	12.15	29.18	12.15	29.18	30.41	28.82
M.S.V. LIFE P.L.C.	17.65	6.15	17.65	6.15	8.68	8.96
MAPFRE PERÚ VIDA, COMPAÑÍA DE SEGUROS, S.A.	9.18	રે. વેટ	4.50	3.88	5.91	6.85
CAJA CASTILLA LA MANCHA VIDA Y PENSIONES, S.A.	11.99	4.80	11.99	4.80	8.68	8.91

Figures in millions of euros

Additionally, in 2018, non-controlling interests in the companies BB MAPFRE PARTICIPAÇOES, S.A., BANKIA MAPFRE VIDA, S.A. DE SEGUROS Y REASEGUROS and BANKINTER SEGUROS DE VIDA, S.A. received funds for the following items and amounts:

The English version is a translation of the original in information purposes only. In case of discrepancy, the Spanish version shall prevail.

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Controlled company	ltem	Amount
BB MAPFRE PARTICPACOES, S.A.	Capital reduction	71.39
BANKIA MAPFRE VIDA, S.A. DE SEGUROS Y REASEGUROS	Share premium	35.86
BANKINTER SEGUROS DE VIDA, S.A.	Share premium	18.21

Figures in millions of euros

The distribution of share premiums is included in the Consolidated statement of changes in equity as "Other operations with the controlling company's shareholders and non-controlling interests"

Additionally, in 2019 and 2018, the following restructuring was carried out:

In March 2019, administrative authorization was received to carry out the business restructuring operation for MAPFRE GLOBAL RISKS, by means of which:

a) The purely insurance and reinsurance activities of MAPFRE GLOBAL RISKS, along with the assets and liabilities related to them, were transferred to MAPFRE ESPAÑA and MAPFRE RE, respectively.
b) An entity was created that will continue with MAPFRE GLOBAL RISK's activity of analysis and underwriting of large industrial and commercial risks, and it will act on behalf of MAPFRE ESPAÑA and MAPFRE RE.

The execution of this restructuring has not had a significant impact on the consolidated financial statements of the Group.

On November 30, 2018, the business reorganization of the strategic alliance between MAPFRE and Banco do Brasil came into effect. This alliance was initially formed in 2011 and was implemented through the holding companies BB MAPFRE SH1, focused primarily on the Life business, and MAPFRE BB SH2, owner of the insurers operating in other lines. The reorganization was set out in the following terms:

a) Partial spin-off of BB MAPFRE SH1 by means of the segregation of the shareholding in MAPFRE Vida (Brazil), which will be absorbed by MAPFRE BB SH2.
b) Partial spin-off of MAPFRE BB SH2 by means of the shareholding in Aliança do Brasil Seguros (ABS), which will be absorbed by BB MAPFRE SH1.
c) BB Seguros sells to MAPFRE BRASIL the whole of its shareholding in BB MAPFRE SH2.

The key figures for controlled companies and significant joint arrangements related to insurance activities are shown below:

� Balance sheet

Entity	Investments		Crodits		Total assets		Equity		Technical Provisions
	2019	2018	2019	2018	2019	2018	2019	2018	2019	2018
Controlled company
MAPFRE VIDA SOCIEDAD ANÓNIMA DE SEGUROS Y REASEGUROS SOBRE LA VIDA HUMANA	13,866.80	12,625.52	192.28	148.11	16.216.97	14,664.52	1,414.27	1.307.68	12,509.42	11,468.37
BANKIA MAPFRE VIDA. S.A. DE SEGUROS Y REASEGUROS	7,501.13	7,374.07	12.99	12.49	7,667.17	7,551.49	334.05	312.05	6,712.04	6,752.66
MAPERE ESPAÑA COMPAÑÍA DE SEGUROS Y REASEGUROS S.A.	6,192.24	5,668.82	851.48	937.18	9,560.06	8,027.50	2.486.60	2,216.15	5,783.39	4.983.15
MAPFRE RE COMPAÑÍA DE REASEGUROS, S.A.	4,467.20	3,918.58	846.56	397 39	8.467.38	5,838.83	1,696.41	1,223.30	5,864.14	4,167.42
M.S.V. REE P.L.C.	2,244.40	1,982.78	2.23	2.48	2,497.08	2,213.36	147.34	159.98	2,202.00	1,927.91
BANKINTER SEGUROS DE VIDA, S.A.	1,820.29	1.608.24	32,93	26.68	2,110.80	1,837.73	169.67	130.15	1,371.62	1,177.64
COMPANHIA DE SEGUROS ALIANÇADO BRASIL, S.A.	1.473.08	1,362.51	746.83	712.50	3.024.18	2.773.18	278.54	329.95	2.035.27	1,832.08
Subtotal controlled companias	37,565.14	34,540.52	2,685.30	2,231.83	49,543.64	42,906.61	6,526.88	5,679.26	36,477.88	32,309.23
Joint Arrangement
SOLUNION SEGUROS DE CREDITO S.A.	79.77	73.08	80.70	78.10	439.05	407.82	121.04	111.29	204.03	179.95
Subtotal Joint Arrangements	79.77	73.08	80.70	78.10	439.05	407.82	121.04	111.29	204.03	179.95

. Income statement

		Revenue			Rasults
Entity	From insurance business		Totals		From insurance business		From operations		From global account
	2019	2018	2019	2018	2019	2018	2019	2018	2019	2018
Controlled company
MAPFRE VIDA SOCIEDAD ANONIMA DE SEGUROS Y REASEGUROS SOBRE LA VIDA HUMANA	2,786.37	2.485.53	2.808.90	2.507.19	202.64	299.48	224.48	287.93	272.86	283.30
BANKIA MAPFRE VIDA, 5.A. DE SEGUROS Y REASEGUROS	779.38	898.60	784.27	903.36	128.81	105.88	96.80	79.63	129.14	59.66
MAPERE ESPAÑA COMPAÑÍA DE SEGUROS Y REASEGUROS S.A.	4,659.33	4,483,67	5,412.31	5.172.78	320.23	315.12	244.24	232.77	550.94	150.27
MAPFRE RE COMPAÑÍA DE REASEGUROS, S.A.	4,999.83	3,950.61	6,829,68	4,676.61	70.18	181.81	52.35	140.87	131.65	57.89
M.S.V. LIFE P.I.C.	564.89	405.57	568.80	409.23	14.54	13.72	11.77	10.94	11.77	10.94
BANKINTER SEGUROS DE VIDA. S.A.	476.24	519.11	486.00	532.88	81.37	77.13	60.77	57.60	63.82	52.70
COMPANHIA DE SEGUROS ALIANCADO BRASIL, S.A.	1.539.15	1.537.98	2.035.61	1.805.49	446.07	550.53	314.21	354.26	312.50	357.10
Subtotal controlled companies	15,805.19	14,281.07	18,925.57	18,007.54	1,263.84	1,543.67	1,004.62	1,164.00	1,472.68	971.86
Joint Arrangement
SOLUNION SEGUROS DE CREDITO S.A.	36.96	30.94	243.97	224.79	16.24	13.35	7.82	6.10	8.91	4.60
Subtotal Joint Arrangements	36.95	30.94	243.97	224.79	16.24	13.95	7.82	6.10	8.91	4.60

Figures in millons of euros

The key figures for controlled companies and significant joint arrangements related to non-insurance activities are shown below:

Balance sheet e

Entity	Current assets		Total assets		Equity		Current liabilities
	2019	2018	2019	2018	2019	2018	2019	2018
Controlled company
FUNESPAÑA, S.A.	202.61	166.58	203.98	167.69	127.80	118.79	72.99	45.76
MAPFRE INVERSION SOCIEDAD DE VALORES S.A.	64.37	71.28	222.29	209.87	169.82	165.85	45.80	37.38
MAPFRE TECH	37.06	48.34	73.12	64.54	18.08	20.85	45.77	35.35
CREDIMAPERE	24.02	27,98	24.48	28.13	3.41	3.16	21.08	24.98
Subtotal controlled companies	328.06	314.18	523.87	470.23	319.11	308.65	185.64	143.47

ures in millions of euro:

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

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Income statement

	Revenue		Eamings
Entity			From operations		From overall account
	2019	2018	2019	2018	2019	2018
Controlled company
FUNESPAÑA, S.A.	78.07	113.48	6.10	5.52	6.10	5.51
MAPFRE INVERSIÓN SOCIEDAD DE VALORES S.A.	83.39	104.26	37.24	57.35	40.88	51.60
MAPFRE TECH	193.14	180.88	(2.55)	0.73	(2.55)	0.73
CREDIMAPFRE	4.45	3.37	0.21	0.14	0.21	0.14
Subtotal controlled companies	359.05	401.99	41.00	63.74	વેવા દિવે	57.98

Information relating to joint arrangements and associated undertakings

In 2019 and 2018 MAPFRE PARTICIPACIONES and MAPFRE GLOBAL RISKS did not receive any dividends from SOLUNION.

The cost and fair value of the shareholding in the SOLUNION joint venture at the close of the year were 37.12 and 60.52 million euros, respectively (37.12 and 64.01 million euros respectively in 2017).

The following table contains the supplementary information for the joint ventures:

Joint Arrangement	Cash and cash Financial liabilities equivalents			Repayment			Interest	Expenses or income after tax
						Revenue		Expenses		on profit
	2019	2018	2019	2018	2019	2018	2019	2018	2019	2018	2019	2018
SOLUNION SEGUROS DE CREDITO S.A.	7.18	4.70		a v	3.27	2.24	2.61	2.57	1.73	2.44	(2.83)	(2.49)
TOTAL	7.18	4.70	ww	We for	3.27	2.24	2.61	2.57	1.73	2.44	(2.83)	(2.49)

ures in millions of euros

The information relating to the key figures of the most relevant associated undertakings is included in Annex 2 of the annual report.

Remuneration of key management personnel

The following table shows the paid remuneration received in the last two years by members of the Board of Directors of the controlling company:

	Amount
Item	2019	2018
Short-term remuneration
Salary	2.59	3.00
Short-term variable remuneration	1.95	2.09
Fixed allowance	2.75	2.75
Other Items	0.06	0.91
Medium-term variable remuneration	1.28	1.13
TOTAL REMUNERATION	8.69	9.88
Other remuneration
Life insurance	0.08	0.09
Flaures in millions of suros

105

The English version is a translation of the original in information purposes only. In case of discrepancy, the Spanish version shall prevail.

The basic remuneration for external directors consists of an annual fixed amount for membership to the Board of Directors, which was 110,000 euros in 2019 and 2018, The Vice-Chairman-Coordinating Director has an additional fixed annual allowance of 110,000 euros. The members of the Steering Committee receive 10,000 euros in 2019 and also have a travel, subsistence and accommodation allowance of 3,000 euros. In 2018 they received 20,000 euros. Said amount reaches 68,000 euros (65,000 in 2018), in the case of people who chair the Audit and Committee, and 60,000 euros (57,000 in 2018) in the case of people who chair other Steering Committees. Other members of the Audit and Compliance Committee receive 48,000 euros (45,000 in 2018) and other members of other sub-steering committees receive 39,000 euros (37,000 euros in 2018).

Members of the Boards of Directors of Spanish insurance companies receive a fixed allowance of 48,000 euros (47,000 in 2018). The external vice-chairmen of the Boards of Directors of Spanish companies receive an additional 11,000 euros (10,000 euros in 2018), and those who are members of Management Committees receive 11,000 euros (10,000 in 2018).

Life insurance is also established in case of death, with an insured capital of 150,253 euros, as well as some of the staff benefits like medical insurance.

Executive directors (who are deemed to be executives of the controlling company as well as those who perform executive functions in other MAPFRE GROUP companies) receive the remuneration established in their contracts, which includes a fixed salary, incentives with varying amounts linked to results, life and disability insurance, and other general benefits established for the Group's staff. They also receive certain pension supplements for retirement, externalized through a life insurance policy. All of these payments are in line with the compensation policy established by the Group for its senior managers, whether or not they are directors. In 2019, contributions to defined benefit plans amounted to 4.57 million euros, recognized as expenses for the year (5.12 million euros in 2018), with the amount for accumulated rights reaching 26.81 and 21.37 million euros at December 31 2019 and 2018, respectively.

Executive directors do not receive the fixed assignment established for external directors.

As indicated in this Note regarding medium-term incentive plans, in the current period 1.28 million euros has accrued (1.02 million in cash and 26 million in equity instruments), of which 0.14 million euros in cash and 0.16 million euros in equity instruments are pending payment. Said amounts were fully provisioned. In 2018, a provision was made for 0.10 million euros corresponding to remuneration in cash, and a provision for 0.92 million euros to remuneration to be settled through equity instruments was cancelled. At the close of 2018, the amount of the provision for these plans reached 1.55 million euros.

Regarding variable short-term remuneration accrued in the current and previous years, in 2019 3.05 million euros are pending payment (3.25 million euros in 2018).

The basic remuneration for external directors is approved by the Annual General Meeting at the recommendation of the Board of Directors and in keeping with the report drawn up by the Appointments and Remuneration Committee. The amount of the contractual remuneration for executive directors and the fixed allowance for membership to the Boards or Steering Committees are approved by the Board of Directors, subject to a report by the committee.

The insurance premium paid on behalf of the administrators for damages liability was 0.79 million euros (0.67 million euros in 2018).

The English version is a translation of the original in Spanish for information purposes only. In Spanish version shall prevail.

In reference to senior management, remuneration paid in the last two years is shown below:

Item	Amount
	2019 2018
No. of senior management members	8	7
Fixed remuneration Variable remuneration Other concepts	2.21 1.26 0.18	2.12 1.19 0.08
TOTAL REMUNERATION	3.65	3.30
Life insurance	0.03	0.03

Figures in millions of euros

Regarding medium-term incentive plans, in the current year, 0.23 million euros have accrued (0.17 in cash and 0.06 in equity instruments), of which 0.05 million euros in cash and 0.02 million euros in equity instruments are pending payment. Said amounts were fully provisioned. In 2018 part of a provision for the amount of 1.02 million euros was cancelled.

Additionally, an expense of 1.05 million euros was recorded in 2019 (0.83 million euros in 2018) as a contribution to defined benefit plans.

6.26. EVENTS SUBSEQUENT TO CLOSING

There have been no significant events subsequent to the close of the year.

7. RISK MANAGEMENT

The Board of Directors of MAPFRE S.A. establishes the risk level that the Group would be ready to assume to attain its business objectives with no significant deviations, even in adverse situations. That level, which establishes limits and sub-limits per risk type, configures the MAPFRE Group's risk appetite.

MAPFRE's structure is based on Units and Companies that are highly autonomous insofar as their management. The governing and management bodies of the Group approve the Units' and Companies' lines of action regarding continuous risk management and supervision through indicators and risk exposure ratios.

To guarantee the effective administration of risks, the Group has developed a series of policies. The Risk Management policy establishes a framework for risk management and, at the same time, for the development of policies regarding specific risks. These are:

· They establish general guidelines, basic principles and a general framework of action for the type of risk, ensuring coherent application within the Group.
· Assign responsibilities and define strategies, processes and procedures regarding the information needed to identify, measure, monitor, manage and notify about the risks referred to.

The English version is a translation of the original in Spanish for information purposes only. In Spanish version shall prevail.

· Establish reporting chains of command and communication responsibilities of the risk supervisor.

The Group Risk Management Area handles all significant aspects related to risk management corresponding to the Group as well as relevant aspects of the different legal undertakings belonging to it, establishing benchmark directives and criteria to be taken on, with any adaptations necessary, by the risk areas of the individual undertakings.

The Governing Bodies receive information relating to the main risks to which the Group is exposed and the capital resources available to cover them, as well as information relating to compliance with the established risk appetite limits.

Assigned capital is established in general based on the budgets for the following year and it is periodically reviewed throughout the year in line with the development of risks in order to ensure compliance with the established risk appetite limits.

Exposure to the types of risk coming from the Group financial insurance contracts, as well as the processes and methods used for their management and measurement are explained in sections A), B), C) and D) of this Note.

A) INSURANCE RISK

1. Sensitivity to insurance risk

This sensitivity analysis measures the effect on capital fluctuations upward and downward of the determining factors of insurance risk (number of insured risks, average premium value, frequency and cost of claims). One measure of the sensitivity to the Non-Life insurance risk is the impact that a 1 percentage point change in the combined ratio would have on the annual results and, consequently, on equity. The following table shows this effect and the volatility index of the ratio, calculated according to the standard deviation in a five-year time horizon:

Business Units	Impact on results of 1% variation in the combined ratio	Combined ratio
	2018	2017	volatility index
Insurance IBERIA t LATAM s INTERNATIONAL ﮨ	34.65 24.70 20.73	34.10 22.81 19.22	1.24% 1.23% 1.89%

Reinsurance	18.24	19.07	1.93%
Assistance	6.02	4.78	1.12%
Global Risks	1.44	2.40	24.27%
CONSOLIDATED	100.05	90.62	0.44%

Figures in millions of euros

108

The English version is a translation of the original in information purposes only. In case of discrepancy, the Spanish version shall prevall

In the case of the Life business, MAPFRE uses the standard formula to measure and manage the conditioning factors of insurance risk with the standard formula, which contemplates the following aspects:

Mortality
Morbidity
Revision
Expenses
Lapse
Catastrophe

The following chart shows the Life insurance risk sensitivity analysis, of the main Life insurers of the Group as a whole, by variations of the main sources of doubt, and their impact on Solvency II Eligible Own Funds for the Group:

tem	Sensitivity range (typical deviation)
	2019	2018
Mortality ratio (5% increase)
(products without longevity risk)	(1.6%) to (0.8%)	(1.5%) to (0.8%)
Mortality ratio (5% decline)
(only products with longevity risk)	(2.0%) to (1.1%)	(1.6%) to (0.9%)
Disability ratio (5% increase)
Expenses (10% increase)	(1.9%) to (1.3%)	(1.2%) to (0.9%)
Lapses (10% increase)	(1.0%) to (0.6%)	(1.3%) to (0.7%)

Adequate allocation of technical provisions is one of the basic principles of the Group's insurance management. The technical provisions are calculated by the companies' actuarial teams and the amounts are validated by an independent party that did not participate in the calculation. The establishment of technical provisions is regulated by a specific policy.

They main actuarial methodologies considered to be adequate, applicable and relevant for the calculation of technical provisions under Solvency II for MAPFRE Group are:

For Non-Life insurance:
- Combinations of generally accepted deterministic methods to determine the ultimate loss ratio based on the selection of factors to determine average cost and frequency.
- Stochastic methods to determine the loss ratio assuming a probability distribution function.
For Life insurance:

109

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

Policy by policy calculation of the current expected value of acquired commitments based on existing statistical information regarding mortality, longevity, disability, etc.
Projections based on groupings of homogenous policies or 'model points' where the policy by policy cash flow calculations are disproportionate in relation to the nature and complexity of the company's risks, as long as the projection does not distort the results obtained
Stochastic calculations, where relevant, to recognize the temporary value of the ၊ options and guarantees.

2. Concentrations of insurance risk

The Group has a high degree of insurance risk diversification since it operates in virtually all insurance lines in Spain and has a wide presence in the international markets.

The Group has implemented a system of procedures and limits which allows it to control the level of concentrated insurance risk.

It is standard practice to use reinsurance contracts to mitigate the insurance risk arising from the concentration or accumulation of guarantees exceeding the maximum acceptance levels.

2.a) Premiums by risk

The following tables show the breakdown for the last two years of written direct insurance and accepted reinsurance premiums classified according to the type of business underwritten:

2019

Other risks Non-Life ltem Catastrophe Non-Life Tota Life Total risk Life Catastrophe risk Other risks Other Automobile Written premiums, direct 19,538.76 4,877.67 6,565.61 7,743.84 351.64 ev er - unu ----- insurance Premiums from accepted 593.74 266.92 3,505.16 2,644.50 va re ﻴﺔ ﺟﺎ *** ఊళ reinsurance		Accepted reinsurance				Direct insurance

2018

	Accepted reinsurance				Direct insurance
ltem	Life	Non-Life				Other risks
		Catastrophe risk		Total Other risks	Catastrophe risk		Non-Life		Total
						Life	Automobile	Other
Written premiums, direct insurance Premiums from accepted reinsurance	**** 600.47	-- 461.55	- 2,372.85	ﮨﮯ ﮨﯿﮟ 3,434.87	382.95 .	4,870.58 44	6,812.94 ----	7,035.76	19,102.23 -

res in millions of euro

110

The English version is a translation of the original in information purposes only. In case of discrepancy, the Spanish version shall prevail.

2.b) Premiums by product and segment

The following tables show premiums issued for direct insurance and accepted reinsurance by product and segment, in the last two years:

2019

Product	IBERIA	ILATAM NORTH	LATAM SOUTH	BRAZIL	NORTH AMERICA	EURASIA	MAPERE ASISTENCIA	MAPFRE GLOBAL RISK	MAPFRE RE	CORPORATE AREAS AND CONSOLIDATION ADJUSTMENTS	Total

ife	2,425.09	425.44	241.28	1,502.53	4.36	292.28	**		**	0.10	4,891.08
Automobile	2,313.61	298.64	427.93	842.70	1,550.45	1.101.56	103.83	**		(103.42)	6,535.30
Homeowners and	973.13	119.09	195.35	426.88	રિકર્સ તેને	86.72	4 46	4 %		0.25	2,467.37
Health	580.33	230.32	75.84	0.93	54.31	126.15		**	**	1.67	1,069.55
Accident	111.86	18.14	95.29		2.02	7.99		-		0.05	235.35
Other Non-Life	1,313.74	881.47	561.02	1,204.47	54.65	80.84	757.20		**	(375.79)	4.477.60
Reinsurance	**	-						1,060.12	4,520.37	(2,212.83)	3,367.66
					24		-		***
TOTAL	7,717.76	1,973.10	1,596.71	3,977.51	2,331.74	1,695.54	861.03	1,050.12	4,520,37	(2,689.96)	23,043.92

2018

IBERIA			BRAZIL	NORTH AMERICA	EURASIA	MAPFRE ASISTENCIA	MAPFRE GLOBAL RISK	MAPFRE RE	CORPORATE AREAS ADJUSTMENTS	Total

2,582.56	343.77	261.45	1,355.71	4.03	328.09	**				4,875.70
2,282.91	279.65	449.96	1,013.52	1,639.70	1,123.71	90.70			(89.25)	6,790.90
921.08	101.53	194.39	435.30	673.90	86.73		***	Ma	0.36	2,413.29
554.65	211.03	72.02	1.52	63.96	125.75	**	A.		3.49	1,032.42
109.36	15.21	95.83		1.95	10.00				0.06	232,41
1.207.35	358.16	532.10	1.166.15	41.74	91.48	820.32	117.23		(930.85)	3,403.68
							1.056.68	3,787.13	(1,055.11)	3,788.70
+4					-				-----
7.657.91	1,309,35	1.605.75	3.972.20	2,425.28	1,765.76	911.02	1,173.91	3,787.13	(2,071.21)	22,537.10
			LATAM NORTH LATAM SOUTH							AND CONSOLIDATION 0.09

2.c) Premiums by currency

The following tables show the breakdown for the last two years of written direct insurance premiums.

	Financial Year
Currency	2019	2018

Euro	8,877.98	9.023.42
US dollar	4.147.99	3,622.32
Brazilian real	3,977.51	3.972.20
Mexican peso	633.26	489.88
Argentine peso	128.43	168.90
Venezuelan bolivar	4.15	5.56
Turkish lira	340.83	380.58
Colombian peso	276.50	309.74
Chilean peso	134.74	154.05
Pound sterling	249.65	226.91
Peruvian sol	284.74	268.55
Indonesian rupiah	48.90	61.89
Other currencies	434.08	418.22
TOTAL	19,538.76	19,102.22

The English version is a translation of the original in information purposes only. In case of discrepancy, the Spanish version shall prevail.

3. Claims

Section 3.4 of Note 6.13 of the annual report, "Technical Provisions", offers information about the progression of claims.

B) credit risk

1.

The following table shows the breakdown of receivables against reinsurers in the last two years:

Ceded and retroceded reinsurance	Book value
	2019	2018
· Provision for life insurance · Provision for outstanding claims · Other technical provisions · Recelvables on ceded and retroceded reinsurance transactions · Due on ceded and retroceded reinsurance transactions	57.00 4.313.86 4.82 390.51 (868.87)	55.95 4,303.06 1-46 484.16 (423.21)
TOTAL NET POSITION	3,897.32	4,421,42

The following table shows the breakdown of credits against reinsurers based on the financial solvency margin:

	Book value
Rating	2019	2018
AAA	1,244.10	1,040.09
ਕਰ	1,009.39	1,028.92
A	574.46	1,457.50
BBB	294.85	389.84
BB OR LESS	125.48	10.35
WITHOUT CREDIT RATING	649.05	494.73
TOTAL NET POSITION	3,897.32	4,421.42

ures in millions of euros

The following table shows the type and amount of the guarantees granted by reinsurers in the last two years:

	Amount
Type of surety	2019	2018
Letters of credit	1.10	2.15
Guarantees
Pledging of assets
Other guarantees	16.56	476.79
TOTAL	17.66	478.94

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

The balances corresponding to receivables on direct insurance and co-insurance operations amounted to 3.95 and 3.64 billion euros at December 31, 2019 and 2018, respectively. Estimated losses due to impairment are recorded in the income statement as specified in accounting policy 5.9.

2. Credit risk arising from other financial instruments

The breakdown for the last two years of the portfolio of fixed-income securities, hybrid securities, deposits and cash, based on the payment capacity of issuers of fixed-income securities and financial institutions, is shown below:

	Book value
Credit rating	Held-to-maturity portfolio		Available-for-sale portfollo			Trading portfolio	Cash
	2019	2018	2019 2018		2019 2018		2019 2018
AAA	1,462.92	1,437.93	2.322.65	1,941.84	1,896.58	1,082.78	142.71	151.86
AA	46.33	83.45	3.169.58	3,936.23	225.06	1,076.59	240.92	299.43
A	33.92	32.38	20,742.99	18.686.11	499.70	482.56	1,212.17	938.24
888	211.40	151.00	7.421.12	6,265.73	817.60	715.47	631.08	505.91
BB OR LESS	79.93	156.67	256.88	463.70	22.52	142.84	98.94	128.88
WITHOUT CREDIT RATING	115.20	78.17	399.14	194.27	113.27	2.93	211.68	177.09
TOTAL	1,949.70	1,939.60	34,312.36	31,487.88	3,574.73	3,503.17	2,537.50	2,201.41

3. Fixed-income securities in default

There were no fixed-income securities in default for significant amounts at December 31, 2019 and 2018.

এ.. Receivables

The following table shows the composition of the receivables heading at December 31, 2019 and 2018, as well as impairment losses, gains on recorded impairment reversals, and received amounts for guarantees in the last two years:

	Net balance on balance sheet			Impalrment	Guarantees Received
ltem			Recorded losses				Reversal gains
	2019	2018	2019	2018	2019	2018	2019	2018
Receivables on direct insurance and co- insurance operations	3,945.09	3,644.21	(11.29)	(10.82)	6.97	ਰੇ ਕੇਤੇ	****	***
Receivables on reinsurance operations	934.33	903.08	(16.44)	(21.95)	15.89	15.64	-
Tax receivables	409.20	336.70	-					-
Corporate and other receivables	780.77	877.21	(10.47)	(3.02)	2.43	2.28	ma	***

TOTAL .	6,069.39	5,761.20	(38.20)	(35.79)	25.29	27.85	ww

C) LIQUIDITY RISK

With respect to liquidity risk, MAPFRE has a Liquidity Risk Management Policy and an Asset and Liability Management Policy, which together comprise the benchmark framework for acting in this

The English version is a translation of the original in Spanish for information purposes only. In Spanish version shall prevail.

Código seguro de verificación (CSV): xlvfjCSHJswnKZUFv5fe	COPIA ELECTRÓNICA
Esta es una copia auténtica imprimible de un doumento electrónico por la CNMV, según el artículo 27.3 c) de la Ley 39/2015, de 2 de octubre. Su autenticidad puede ser contrastada a través de la siguiente dirección: https://sede.cnmv/LibreAccess/CSV.aspx

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MAPFRE S.A. AND SUBSIDIARIES

regard. In MAPFRE, the general practice is based on maintaining sufficient cash balances to comfortably cover the commitments arising from its obligations to insured parties and creditors. Thus, at December 31, 2019, the cash and cash equivalent balance amounted to 2.54 billion euros (2.20 billion euros the previous year), equivalent to 5.34 percent of total financial investments and cash (5.07 percent at the close of 2018). For Life and Savings insurance the investment criteria applied consists in matching the maturities of investments with obligations entered into under the terms of insurance contracts in order to mitigate the long-term liquidity risk. In addition, most fixedincome investments have an investment grade and are traded in organized markets, providing ample capacity to act against potential liquidity stress.

Assets with maturity exceeding one year are described in the "Interest rate risk" section.

Lastly, MAPFRE's low level of debt as regards shareholders' equity, combined with the amount not drawn down from the syndicated loan taken out by the controlling company, provides additional liquidity through financing operations. Note 6.12 "Financial liabilities" provides information on the Group's debt with credit institutions and its other financial liabilities.

1. Liquidity risk arising from insurance contracts

The table below shows the estimated schedule of disbursements for insurance liabilities recorded at December 31, 2019 and 2018 (non-financial discount amounts).

2019

	Estimated cash outflows in years
ltem	2020	2021	2022	2023	2024	2025 a 2029	Subsequent	Closing balance
Provisions for Life insurance Provision for outstanding claims	2,934.93 5,762.93	2,143.36 2,519.01	2,040.86 1,361.65	1,708.99 769.26	1,583.40 523.53	6,447.15 1,071.47	10,085.30 616.20	26,943.99 12,624.05
Other technical provisions	87.33	41.55	39.57	40.81	41.62	224.52	594.53	1.069.93
Due on direct insurance and coinsurance	879.89	14.74	11.21	6.04	4.16	7.42	4.60	928.06
Due on reinsurance operations	1,501.41	11.07	8.44	4.61	3.10	5.53	6.92	1,541.08
TOTAL	11,166,49	4,729.73	3,461.73	2,529.71	2,155.81	7,756.09	11,307.55	43,107.11

2018

	Estimated cash outflows in years
tem	2019	2020	2021	2022	2023		2024 a 2028 Subsequent	balance
Provisions for Life insurance Provision for outstanding claims	2,733.10 6,161.41	2,105.46 2,433.37	1,985.52 1,223.84	1,871.39 756.87	1,502.78 516.69	6,253.93 1,151.78	10,105.60 470.19	26,557.78 12,714.15
Other technical provisions	87.57	36.65	38.35	40.36	42.45	245.84	485.91	977.13
Due on direct insurance and coinsurance	1,047.43	14.72	10.25	6.61	4.25	8.71	2.81	1,094.78
Due on reinsurance operations	841.49	2.24	2.09	1.03	0.67	1.38	3.74	852.64
TOTAL	10,871.00	4,592,44	3,260.05	2,676.26	2,066.84	7,661.64	11,068.25	42,196.48
Figures in millions of auros

114

MAPFRE S.A. AND SUBSIDIARIES

2. Liquidity risk arising from subordinated liabilities and financial liabilities

The breakdown for the last two years of disbursement maturities for subordinated and financial liabilities, excluding the financial discount, is shown below:

2019

Item	Maturity in
	2020	2021	2022	2023	2024	Subsequent	Total
Subordinated liabilities Issue of debentures and other negotiable securities Due to credit institutions	46.88 16.25 62.13	46.88 16.25 32.88	46.88 16.25 32.79	46.88 16.25 32.76	46.88 16.25 642.76	1,261.25 1,032.50 52.86	1,495.65 1,113.75 856.18
Other financial liabilities (excluding for trading, others at fair value and w/o maturity)	532.72	1.15	1.35	1.05	0.94	7.11	544.37
TOTAL	657.98	97.16	97.27	છે. કેવ	706.83	2,353.72	4,009.90

2018

	Maturity in
Item	2019	2020	2021	2022	2023	Subsequent	Total
Subordinated liabilities Issue of debentures and other negotiable securities Due to credit institutions	46.88 16.25 રેર રેતે	46.88 16.25 0.11	46.88 16.25 0.06	46.88 16.25 0.04	46.88 16.25 490.00	1,308.13 1.048.75 0.01	1,542.53 1,130.00 545.81
Other financial liabilities (excluding for trading, others at fair value and w/o maturity)	503.75	3.42	0.34	0.30	0.25	625.38	1,133.44
TOTAL	622.47	રેસ સ્વિ	63.53	63.47	553.38	2,982.27	4,351.78

Figures in millions of eu

D) MARKET RISK

The MAPFRE Risk Management Area carries out resilience and sensitivity tests regarding the impact of financial variables from the market on its solvency position.

The Group's Investment Area regularly conducts analyses of the sensitivity of the investment portfolio's value to market risk. Among others, the most usual indicators are the modified duration, for fixed-income securities, and the VaR, or value at risk, for equity instruments.

1. Interest rate risk

The following tables show the significant information of the last two years regarding the level of exposure to interest rate risk of the financial assets and liabilities:

		MAPFRE S.A. AND SUBSIDIARIES
--	--	------------------------------

Portfolio	Amount of assets exposed to interest rate risk at fair value
		Fixed interest rate	Not exposed to risk		Total
	2019	2018	2019	2018	2019	2018
To maturity Available for sale Trading	1,830.38 31,452.44 4.748.66	1,641.07 28,969.30 4,413.85	143.01 5,632.77 1,188.61	310.40 4.784.43 1,126.92	1.973.39 37,085.21 5,937.27	1,951.47 33.753.73 5,540.77

TOTAL	38,031.48	35,024.22	6.964.39	6,221.75	44,995.87	41,245.97

res in millions of euro

The assets with a fixed interest rate include the immunized portfolios, which amounted to 16.48 and 15.25 billion euros at December 31, 2019 and 2018 respectively, thus reducing the interest rate risk.

	Amount of liabilities exposed to interest rate risk at fair value
ltem	Fixed interest rate		Not exposed to risk		Total
	2019	2018	2019	2018	2019	2018

Subordinated liabilities	1,121.07	1,120.54		Star Sected	1,121.07	1,120.54
Issue of debentures and other negotiable securities	1,004.82	1,004.05		t	1,004.82	1,004.05
Due to credit institutions	28.37	12.86	819.44	532.83	847.81	દ્વાર 69
Other financial liabilities	735.19	468.52	1,177.89	794.28	1,913.08	1,262.80
TOTAL	2,889.45	2,605.97	1,997.33	1,327.11	4,886.78	3,933.08

The following tables show the breakdown of financial investments by maturity for 2019 and 2018.

December 31, 2019

ltem		Maturity in:
	Closing balance	1	2	3	4	5	Subsequent
		year	years	years	years	Years	or without maturity

HELD TO MATURITY PORTFOLIO
Fixed income	1,949.70	343.56	163.92	295.44	178.97	93.43	874.38
Other investments	23.69	14.57	1.31	0.17	0.02	0.05	7.57
TOTAL HELD TO MATURITY PORTFOLIO	1,973.39	358.13	165.23	295.61	178.99	93.48	881.95

AVAILABLE FOR SALE PORTFOLIO
Fixed income	34,312.36	2,335.57	2,157.33	2,933.44	2,781.74	3.649.88	20,454.40
Other investments	25.75	10.76	4.84	1.42	0.92	5.92	1.89
TOTAL AVAILABLE FOR SALE
PORTFOLIO	34,338.11	2,346.33	2,162.17	2,934.86	2,782.66	3,655.80	20,456.29

TRADING PORTFOLIO
Financial swaps	494.47	(128.85)	(72.34)	(145.02)	(77.52)	(106.95)	1,025.15
Options	0.03	0.03
Fixed income	3,181.59	1,425.61	282.37	288.58	122.75	232.12	830.16
Hybrids	392.72	109.04	129.37	122.89	***	4.33	27.09
Deposits	0.42	***	-	-		-	0.42
TOTAL TRADING PORTFOLIO	4,069.23	1,405.83	339.40	266.45	45.23	129.50	1,882.82
. FOLLEHOLD For any 1120 mg all wreams .

The English version is a translation of the original in information purposes only. In case of discrepancy, the Spanish version shall prevail.

MAPFRE S.A. AND SUBSIDIARIES

December 31, 2018

		Maturity In:
ltem	Closing	ﻠﺴﺎ	2	3	4	5	Subsequent or without
	balance	year	years	years	years	Years	maturity

HELD TO MATURITY PORTFOLIO							877.11
Fixed income	1,939.60	257.49	198.63	110.19	265.12	231.06
Other investments	11.87	5.97	0.02		0.19	2.01	3.68
TOTAL HELD TO MATURITY				110.19	265.31	233.07	880.79
PORTFOLIO	1,951.47	263.46	198.65

AVAILABLE FOR SALE PORTFOLIO
Fixed income	31,487.88	2,308.96	1,934.73	2,287.65	2,863.52	2,764.01	19,329.01
Other investments	33.53	27.06	44	0.50	4.06		1.91
TOTAL AVAILABLE FOR SALE
PORTFOLIO	31,521.41	2,336.02	1,934.73	2,288.15	2,867.58	2,764.01	19,330.92

TRADING PORTFOLIO
Financial swaps	453.00	(104.23)	(122.18)	(60.31)	(111.15)	(97.92)	948.78
Options	0.70		0.70
Fixed income	3,090.04	1,556.55	176.29	353.52	188.82	139.78	675.08
Hybrids	413.13	16.51		135.78	120.89	67.22	72.73
Deposits			-	1		-
TOTAL TRADING PORTFOLIO	3,956.87	1,468.83	54,81	428.99	198.56	109.08	1,696.59

The average interest rate and modified duration of fixed-income investments in 2019 and 2018 are shown below:

Item	2019	2018
Average interest rate (%)	3.68	4.05
Modified duration (%)	7.26	6.75

The modified duration reflects the sensitivity of the assets to movements in interest rates and represents an approximation of the percentage variation that the value of financial assets would experience for every percentage point (100 bp) of variation of interest rates.

The balances included in the "Receivables" heading under the assets on the balance sheet and in the "Due on direct insurance and co-insurance operations", "Due on reinsurance operations", "Tax liabilities" and "Other debts" accounts under the liabilities on the balance sheet do not accrue interest and they are usually settled the following year. Liabilities with a maturity exceeding one year are covered in the section "Liquidity risk arising from subordinated liabilities and financial liabilities".

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

2. Exchange rate risk

The following table shows the breakdown of assets and liabilities regarding the currencies in which they are recorded at the end of the last two years.

	Assets		Liabilities		Net Total
Currency	2019	2018	2019	2018	2019	2018

Furo	42,783.68	39,127.49	39,072.47	36,278.29	3,711.21	2,849.20
US dollar	14,068.98	13,100.62	10.705.40	10,088.00	3,363.58	3,012.62
Mexican peso	1,307.20	1,000.87	980.42	739.42	326.78	261.45
Brazilian real	8,196.13	8,068.41	6,618.67	6,413.87	1.577.46	1,654.54
Turkish lira	815.26	845.15	709.25	719.28	106.01	125.87
Chilean peso	348.96	402.63	218.68	287.37	130.28	115.26
Venezuelan sovereign bolivar	14.65	4.42	5.05	2.71	9.60	1.71
Argentine peso	276.07	304.44	214.53	226.71	61.54	77.73
Colombian peso	1,478.55	1,575.45	1,397.54	1,270.87	81.01	304.58
Pound sterling	646.30	606.93	521.58	413.53	124.72	193.40
Canadian dollar	59.44	52.64	14.76	14.06	44.68	38.58
Philippine peso	105.10	109.66	77.45	87.24	27.65	22.42
Peruvian sol	414.11	327.77	347.12	266.61	66.99	61.16
Indonesian rupiah	242.78	272.10	89.24	97.73	153.54	174.37
Other currencies	1,752.71	1,492.24	1.431.74	1.187.55	320.97	304.69
TOTAL	72,509.92	67.290.82	62.403.90	58,093.24	10,106.02	9,197.58

Flaures in millions of ouros

The sensitivity of the Group's equity to changes in euro exchange rates against the different currencies in which assets are stated is determined by the net total amount shown in the previous table, having deducted the amount for the non-monetary items. Similarly, the effect of these exchange rate variations on the Group's future results is determined by the volume of earnings obtained in each currency. In this regard, Annex 1 provides a breakdown of the country in which the operations of each Group company are located, and Annex 2 provides the result obtained by the most relevant companies in the Group.

3. Stock market risk

The VaR or value at risk (maximum variation expected in a one-year time horizon and at a confidence level of 99 percent) of equities and mutual funds exposed to stock market risk amounted to 720.99 and 638.52 million euros at December 31, 2019 and 2018, respectively.

4. Property risk

At December 31, 2019 the Group had property assets representing approximately 4.55 percent of total investments and cash (4.25 percent at December 31, 2018), of which approximately 45.65 percent corresponds to its own offices (40.68 percent at December 31, 2018). This equity serves the dual function of providing administrative and sales support as well as generating revenues from investments and diversifying investments. The breakdown of these property assets is shown in the following table:

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

MAPFRE S.A. AND SUBSIDIARIES

		Market value Net book value
tem	2019	2018	2019	2018
Real estate investments Real estate for own use	1,323.35 1.111.63	1,243.60 852.66	1,787.39 1,515.13	1.684.29 1,232.99
TOTAL	2,434.98	2,096.26	3,302.52	2,917.28

Unrealized gains would offset a fall in the price of the properties equivalent to approximately 26.27 percent of their market value at the close of 2019 (28.14 percent at the close of 2018).

8. OTHER INFORMATION

8.1. INFORMATION RELATED TO THE GOVERNING BODY

In the last two years, there have not been any conflicts of interest, either direct or indirect, between the directors or the people connected to them and the Group.

In the last two years, the controlling company's directors did not carry out any operations with the controlling company itself or with any other Group company either outside the scope of the companies' ordinary trading activities or outside normal market conditions.

8.2. FEES EARNED BY THE AUDITORS

The annual accounts of the controlling company and of the main Group companies for the financial year 2019 have been audited by the firm KPMG, with the main exception of the subsidiaries with registered offices in Indonesia, whose auditor is PKF. In 2018, the subsidiaries with registered offices in Chile were audited by EY.

The remuneration accrued by the main auditor is shown below. It is deemed that these fees do not compromise the independence of the auditors.

Item	Amount
	2019	2018

Audit services	7.71	7.53
Other verification services	1.58	2.22
Tax services	0.02
Other services	0.01	0.02

Total services of main auditor	9.32	9.77

Figures in millions of euros

The abovementioned amounts include those paid to the company KPMG Auditores, S.L. to the Group in 2019 for the amount of 2.27 million euros for audit services (2.20 million euros in 2018) and 0.58 million euros for

The English version is a translation of the original in information purposes only. In case of discrepancy, the Spanish version shall prevail.

Código seguro de verificación (CSV): xIvfjCSHJswnKZUFv5fe	COPIA ELECTRONICA
Esta es una copia auténtica imprimible de un documento por la CNMV, según el artículo 27.3 c) de la Ley 39/2015, de 2 de octubre. Su autenticidad puede ser contrastada a través de la siguiente dirección: https://sede.mmv/l.ibreAcceso/CSV.aspx

MAPFRE S.A. AND SUBSIDIARIES

Other verification services (0.92 million in 2018). These include, most notably, other required reviews (by regulation or requirement of external partners), as well as services regarding regulatory compliance, the most relevant of which are those corresponding to the Solvency Reports (0.45 million euros).

Fees related to account auditing services provided by auditors other than the main auditor amounted to 0.06 million euros in 2019 (0.26 million euros in 2018).

8.3. ENVIRONMENTAL INFORMATION

The Group companies do not have any environment-related item in the last two financial years that might be significant or specifically included in these consolidated annual accounts.

8.4. INFORMATION ON AVERAGE PROVIDER PAYMENT PERIOD

Details of the payments made by the Group's fully consolidated Spanish companies to providers in the financial years 2019 and 2018:

ltern	Days
	2019	2018
Average provider payment period	5.44	6.66
Ratio of paid operations	5.24	6.49
Ratio of operations pending payment	24.76	19.43

	Million euros
ltem	2019	2018
Total payments made	1,989.00	1,693.75
Total pending payments exceeding the maximum statutory term	20.43	21.60

The English version is a translation of the original in information purposes only. In case of discrepancy, the Spanish version shall prevail.

APPENDIX 1: SUBSIDIARIES, ASSOCIATED UNDERTAKINGS AND JOINT VENTURE AT DECEMBER 31, 2019 AND 2018
		Participation in Capital			Integration
			Percentage		Consolidation	method for
Name	Address	Holder	2019	2018	method	Solvency
BERIA
MAPFRE ESPANA COMPANÍA DE SEGUROS Y REASEGUROS S.A.	Ctra. Pozuelo, 50. Majadahonda. Madrid. (Spain)	MAPFRE, S.A. MAPFRE GLOBAL RISK, S.A.	83.5168	83.5168 16.4825	(A)	(1)
CLUB MAPFRE, S.A.	Ctra. Pozuelo, 50. Majadahonda.	MAPFRE PARTICIPACIONES S.A. MAPFRE ESPAÑA, S.A.	16.4825 99.9875	99.9875	(A)	(1)
CENTRO DE EXPERIMENTACIÓN Y SEGURIDAD	Madrid (Spain) Ctra.Valladolid, km 1	MAPFRE AUTOMOCION S.A.U MAPFRE ESPANA, S.A.	0.0125 99.9982	0.0125 99.9982	(A)	(1)
VAL MAPFRE, S.A.	Avila (Spain)	MAPFRE, S.A.	0.0018	0.0018
MAPFRE AUTOMOCION S.A.U	Crta. De Pamplona a Zaragoza Poligono Ind. Cordovilla	a MAPFRE ESPAÑA, S.A.	100.0000	100.0000	(A)	(1)
VERTI ASEGURADORA, COMPANIA DE SEGUROS Y	Navarra (Spain) Ctra. Pozuelo, 52. Majadahonda.	a MAPFRE ESPAÑA, S.A.	99.9991	99.9991	(A)	(1)
REASEGUROS, S.A	Madrid (Spain)	CLUB MAPFRE S.A.	0.0009	0.0009
RASTREATOR.COM LTD	Greyfriars House Greyfriars Road Cardiff Cardiff. South Wales CF10 3AL (United Kingdom)	MAPFRE ESPAÑA, S.A.	25.0000	25.0000	(C)	(3)
MAPFRE CONSULTORES DE SEGUROS Y	Paseo de Recoletos, 25	MAPFRE ESPANA, S.A.	50.0000	50.0000	(A)	(1)
REASEGUROS, S.A.	Madrid (Spain)	MAPFRE, S.A.	50.0000	50.0000
MULTISERVICIOS MAPFRE MULTIMAP, S.A.	Ctra. Pozuelo, 52. Majadahonda. Madrid (Spain)	MAPFRE ESPANA, S.A.	97.5000 2.5000	97.5000 2.5000	(A)	(1)
FUNESPANA, S.A.	C/ Doctor Esquerdo, 138 5º	CENTROS MEDICOS S.A. MAPFRE ESPAÑA, S.A.	99.7711	99.5567	(A)	(1)
	Madrid (Spain)
POMPES FÜNEBRES DOMINGO, S.L.	C/ Mercaderes, 5 Bajo Tortosa. Tarragona. (Spain)	FUNESPAÑA, S.A.	75.0000	75.0000	(A)	(1)
SERVICIOS FUNERARIOS FUNEMADRID, S.A	C/ Doctor Esquerdo, 138 5º Píta Madrid (Spain)	FUNESPANA, S.A.	100.0000	100.0000	(A)	(1)
CEMENTERIO JARDIN DE ALCALA DE HENARES, SA	Carretera de Pastrana,Km 3 Alcala de Henares. Madrid (Spain)	FUNEMADRID	49.0000	49.00000	(C)	(3)
EMPRESA MIXTA SERVEIS MUNICIPALS DE TARRAGONA, S.L.	Carretera Villa de Valencia, 2 Tarragona (Spain)	FUNESPANA, S.A.	49.0000	49.0000	(C)	(3)
CEMENTERIO PARQUE ANDUJAR, S.L.	C/ Cementerio, 4 Andujar. Jaén (Spain)	FUNESPANA, S.A.	72.8200	68.6200	(A)	(1)
SERVICIOS FUNERARIOS DE ZARAGOZA, S.L.	C/ Doctor Esquerdo, 138 5º Pita Madrid (Spain)	FUNESPANA, S.A.	70.0000	70.0000	(A)	(1)
GAB MANAGEMENT & CONSULTING, S.R.L.	C/ Coso, 66 2℃ Zaragoza (Spain)	FUNESPANA, S.A.	77.6000	77.6000	(A)	(1)
fanatorium ZRT	Joseph Krt, 49 Budapest (Hungary)	FUNESPANA, S.A.	100.0000	100.0000	(A)	(1)
FANATORI DAMA D'ELX, S.L. Salida en 2019 por venta)	C/ Apareguda, 2 El Campello. Alicante (Spain)	FUNESPANA, S.A.		97.1400	(H)	(H)
ZACARIAS NUNO, S.L. Salida en 2019 por extinción)	Avenida de los mártires, 3 Sta. Cruz de Mudela. C.Real (Spain)	FUNESPAÑA, S.A.		50.0000	(H)	(H)
NICIATIVAS ALCAESAR, S.L.	C / Viena, 2 1º A	FUNESPANA, S.A.	40.0000	40.0000	(C)	(3)
SALZILLO SERVICIOS FUNERARIOS, S.L.	Caceres (Spain) C/ Doctor Esquerdo, 138 5º Plta	FUNESPANA, S.A.	45.0000	45.0000	(C)	(1)
DE MENA SERVICIOS FUNERARIOS, S.L.	Madrid (Spain) C/ Doctor Esquerdo, 138 5º Plta	FUNESPANA, S.A.	70.0000	70.0000	(A)	(1)
SABELO ALVAREZ MAYORGA, S.A.	Madrid (Spain) Carretera Avila - Valladiolid Km 08	FUNESPANA, S.A.	50.0000	50.0000	(C)	(3)
SERVICIOS FUNERARIOS DEL NERVION, S.L.	Avila (Spain) Alameda de Recalde 10	FUNESPAÑA, S.A.	50.0000	50.0000	(C)	(3)
NUEVO TANATORIO, S.L.	Bilbao (Spain) Avenida Hermanos Bou, 251	FUNESPANA, S.A.	50.0000	50.0000	(C)	(3)
SERVICIOS FUNERARIOS LA CARIDAD, S.L.	Castellón (Spain) Carretera Sanlúcar - Trebujena Km 1,5	FUNESPANA, S.A.	50.0000	50.0000	(C)	(3)
TANATORIO DE ECIJA, S.L.	Sanlúcar de Barrameda. Cádiz (Spain) C / Camino del Valle	FUNESPAÑA, S.A.	33.3300	33.3300	(C)	(3)
TANATORIO SE-30 SEVILLA, S.L.	Ecija. Sevilla (Spain) C/ San Juan Bosco, 58	FUNESPAÑA, S.A.	10.0000	10.0000	(C)	(3)
ALL FUNERAL SERVICES, S.L.	Zaragoza (Spain) C/ Doctor Esquerdo, 138 5° Pita	FUNESPAÑA, S.A.	100.0000	100.0000	(A)	(1)
FUNESPAÑA CHILE, S.A.	Madrid (Spain) Santiago de Chile	FUNESPANA, S.A.	50.0000	50.0000	(B)	(8)
FUNEUROPEA CHILE, S.A.	(Chile) Santiago de Chille	FUNESPAÑA, S.A.	50.0000	50.0000	(B)	(છ)
FUNERARIAS REUNIDAS EL BIERZO, S.A.	(Chile) C/ Doctor Esquerdo, 138 5º Píta	FUNESPANA, S.A.	85.8200	85.8200	(A)	(1)
SERVICIOS FUNERARIOS LUCEM S.L.	Madrid (Spain) C/ La Costera número 20, Polígono Industrial Bovalar	FUNESPANA, S.A.	50.0000	50.0000	(F)(C)	(F)(3)
FUNERARIA SAN VICENTE, S.L.	46970 Alaquás. Valencia (Spain) C/ Restauración, número 2-bajo, Polígono Industrial y de Servicios "Matallana"	FUNESPANA, S.A.	50.0000	50.0000	(F)(C)	(F)(3)
NVERSIONES FUNERARÍAS ANDALUZAS, S.L.	41440-Lora del Rio. Sevilla (Spain) C/Torredonjimeno skr Martos. Jaén (Spain)	FUNESPANA, S.A.	33.3300		(G)(C)	(G)(3)

Código seguro de verificación (CSV): xIvfjCSHJswnKZUFv5fe	COPIA ELECTRONICA
Esta es una copia auténtica imprimible de un documento electrónico archivado por la cículo 27.3 c) de la Ley 39/2015, de 2 de octubre. Su autenticidad puede ser contrastada a través de la siguiente dirección: https://sede.cnmv/LibreAccess/CSV.aspx

			Participation in Capital			Integration method for
			Percentage		Consolidation
Name	Address	Holder	2019	2018	method	Solvency
FUNERARIA ALIANZA CANARIA. S.L.	C! León y Castillo nº 167	FUNESPANA, S.A.	100.0000		(G)(A)	(G)(1)

MEDISEMAP, AGENCIA DE SEGUROS, S.L.	35004 Las Palmas de Gran Canaria (Spain)	E MAPFRE ESPANA, S.A.	66.6667	66.6667	(A)	(1)
	Ctra. Pozuelo, 52. Majadahona Madrid (Spain)	MAPFRE VIDA, S.A.	33.3333	33.3333
CENTROS MEDICOS MAPFRE, S.A.	C/ Castello 56	MAPFRE ESPANA, S.A.	100.0000	100.0000	(A)	(1)
	Madrid (Spain)
MAPFRE VIDEO Y COMUNICACION S.A.	Ctra. Pozuelo, 50. Majadahonda	MAPFRE ESPANA	75.0000	75.0000	(A)	(1)
	Madrid (Spain)	MAPFRE VIDA, S.A.	25.0000	25.0000
BANKINTER SEGUROS GENERALES, CIA DE	Paseo de la Castellana, 29	MAPFRE ESPANA, S.A.	50.1000	50.1000	(A)	(1)
SEGUROS Y REASEGUROS S.A.	Madrid (Spain)
AUDATEX ESPANA, S.A.	Av de Barajas, 34	MAPFRE ESPANA, S.A.	12.5000	12.5000	(C)	(3)
	Parque Empresarial Omega
	28108 Alcobendas. Madrid (Spain)
TECNOLOGIAS DE LA INFORMACIÓN Y REDES PARA C/García Paredes, 55		MAPFRE ESPANA, S.A.	22.9506	22.9506	(C)	(3)
AS ENTIDADES ASEGURADORAS, S.A	Madrid (Spain)			100.0000
MAPFRE QUINGDAO ENTERPRISE MANAGEMENT	Qingdao	MAPFRE ESPANA, S.A.	100.0000		(A)	(1)
CONSULTING LIMITED COMPANY AGROSEGURO	(China)	MAPFRE ESPANA, S.A.	19.8900	20.1700	(C)	(3)
	C/ Gobelas, 23 Madrid (Spain)
SALVADOR CAETANO AUTO (SGPS), S.A.	Avenida Vasco da Gama 14-10 4430-247	· MAPFRE ESPANA, S.A.	24.6100	24.6100	(C)	(3)
	Vila Nova de Gaia (Portugal)
SALUD DIGITAL MAPFRE S.A.	Ctra. Pozuelo, 50. Majadahonda	MAPFRE ESPANA, S.A.	97.5000	97.5000	(F)(A)	(1)
	Madrid (Spain)	CENTROS MEDICOS MAPFRE, S.A.	2,5000	2.5000
PUY DU FOU ESPAÑA,S.A.	C/ Cuesta de Carlos V, 9	MAPFRE ESPANA, S.A.	19.3810	19.3810	(F)(C)	(F)(3)
	45001 Toledo (Spain)
SANTANDER MAPFRE SEGUROS Y REASEGUROS,	Ctra. Pozuelo, 50. Majadahonda	E MAPFRE ESPANA, S.A.	50.0100		(G)(A)	(G)(1)
S.A.	Madrid (Spain)
MAPFRE INMUEBLES, S.G.A.	Ctra. Pozuelo, 52	MAPFRE ESPAÑA, S.A.	82.9732	76.8430	(A)	(1)
	Majadahonda	MAPFRE, S.A.	9,9979	9.9977
	Madrid (Spain)	MAPFRE VIDA, S.A.	7.0279	7.0279
		MAPFRE GLOBAL RISK S.A.		6.1302
DESARROLLOS URBANOS CIC. S.A.	Ctra. Pozuelo, 52. Majadahonda	MAPFRE INMUEBLES , S.G.A.	99.9216	99.9216	(A)	(1)
	Madrid (Spain)	a MAPFRE, S.A.	0.0784	0.0784
SERVICIOS INMOBILIARIOS MAPFRE S.A.	Ctra. Pozuelo, 52. Majadahonda	MAPFRE INMUEBLES , S.G.A.	99.9000	99.9000	(A)	(1)
	Madrid (Spain)	DESARROLLOS URBANOS CIC. S.A.	0.1000	0.1000
INMO ALEMANIA GESTION DE ACTIVOS	Pso. De la Castellana, 24	MAPFRE ESPANA, S.A.	20.0000	10,0000	(C)	(3)
INMOBILIARIOS, S.L.	(Madrid) España	MAPFRE GLOBAL RISK S.A.		10.0000
MAPFRE TECH, S.A	Ctra. Pozuelo, 52	· MAPFRE ESPANA, S.A.	65.1574	63.4693	(A)	(1)
	Majadahonda	MAPFRE GLOBAL RISK S.A.		1.6881
	Madrid (Spain)	MAPFRE VIDA, S.A.	11.6834	11.6834
		a MAPFRE RE, S.A.	0.8002	0.8002
		MAPFRE ASISTENCIA, S.A.	1.5684	1.5684
		MAPFRE INTERNACIONAL, S.A.	20.0000	20.0000
		mapFRE InvERSION, S.A.	0.0160	0.0180 0.7746
		MAPFRE, S.A.	0.7746 100.0000	99.9994	(A)	(1)
MAPFRE SEGUROS GERAIS S.A.	Rua Castilho, 52	MAPFRE ESPANA, S.A. MAPFRE GLOBAL RISK S.A.		0.0006
MAPFRE PORTUGAL SEGUROS DE VIDA S.A.	Lisbon (Portugal) Rua Castilho, 52	MAPFRE SEGUROS GERAIS S.A.	100.0000	100.0000	(A)	(1)
	Lisbon (Portugal)
MAPFRE VIDA SOCIEDAD ANONIMA DE SEGUROS Y Carretera de Pozuelo, 50.		a MAPFRE, S.A.	99.9199	99.9121	(A)	(1)
REASEGUROS SOBRE LA VIDA HUMANA	(28222) Majadahonda.
	Madrid (Spain)
CONSULTORA ACTUARIAL Y DE PENSIONES	Carretera de Pozuelo, 50	MAPFRE VIDA, S.A.	38.93338	99.9339	(A)	(1)
MAPFRE VIDA S.A.	(28222) Majadahonda	mAPFRE, S.A.	0.0661	0.0661
	Madrid (Spain)
GESTION MODA SHOPPING S.A.	Avda.General Perón.40	mAPFRE VIDA, S.A.	99.8215	99.8215	(A)	(1)
	Madrid (Spain)	MAPFRE, S.A.	0.1785	0.1785
MAPFRE INVERSION SOCIEDAD DE VALORES S.A.	Carretera de Pozuelo, 50-1, M-4. 2º Planta	MAPFRE VIDA, S.A.	વુદ્વે છે. કેવી તેમને છે. કે છે. જીવની તાલુકામાં આવેલું એક ગામના લોકોનો મુખ્ય વ્યવસાય ખેતી, ખેતમજૂરી તેમ જ પશુપાલન છે. આ ગામમાં પ્રાથમિક શાળા, પંચાયતઘર, આંગણવાડી તેમ જ દૂધન	99.9991	(A)	(4)
	Módulo Sur. (28222) Majadahonda	MAPFRE, S.A.	0.0009	0.0000
	Madrid (Spain)
MAPFRE ASSET MANAGEMENT, S.G.I.I.C., S.A	Carretera de Pozuelo, 50-1, M-4. 2º Planta	MAPFRE INVERSION, S.A.	99.9853	99,9853	(A)	(4)
	Módulo Norte.	B MAPFRE, S.A.	0.0147	0.0147
	(28222) Majadahonda.
	Madrid (Spain)
MAPFRE VIDA PENSIONES, ENTIDAD GESTORA DE Carretera de Pozuelo, 50-1, M-4. 2º Planta		MAPFRE INVERSION, S.A.	99.9971	99.9971	(A)	(4)
FONDOS DE PENSIONES S.A.	Modulo Norte.	MAPFRE, S.A.	0.0029	0.0029
	(28222) Majadahonda. Madrid (Spain)
BANKIA MAPFRE VIDA, S.A. DE SEGUROS Y	Ctra. Pozuelo, 50	MAPFRE VIDA, S.A.	51.0000	51.0000	(A)	(1)
REASEGUROS	28222 (Majadahonda)
	Madrid (Spain)
MIRACETI S.A.	Carretera de Pozuelo, 50	mAPFRE VIDA, S.A.	99.9991	વુવું. 999.1	(A)	(1)
	28222 (Majadahonda)	MAPFRE, S.A.	0.00009	0.0009
	Madrid (Spain)
BANKINTER SEGUROS DE VIDA, S.A.	Avda. Bruselas, 12	MAPFRE VIDA, S.A.	50.0000	50.0000	(A)	(1)
	Alcobendas. Madrid (Spain)
CAJA CASTILLA LA MANCHA VIDA Y PENSIONES,	C/ Carreteria, 5	a MAPFRE VIDA. S.A.	50.0000	50.0000	(A)	(1)
S.A.	Cuenca (Spain)
CAJA GRANADA VIDA	Avenida Fernando de los Rios, 6, 2ª planta	MAPFRE VIDA, S.A.	51.0000		(G)(A)	(G)(1)
	Granada (Spain)

Código seguro de verificación (CSV): xIvfjCSHJswnKZUFv5fe	COPIA ELECTRONICA
Esta es una copia auténtica imprimible de un documento electrónico archivado por la artículo 27.3 c) de la Ley 39/2015, de 2 de octubre. Su autenticidad puede ser contrastada a través de la siguiente dirección: https://sede.cnmv/LibreAcceso/CSV.aspx

		Participation in Capital			Integration
			Percentage		Consolidation	method for
Name	Address	Holder	2019	2018	method	Solvency
			51.0000		(G)(A)	(G)(1)
CAJAMURCIA VIDA	Plaza Fuensanta, 2. Edificio Hispania Murcia (Spain)	MAPFRE VIDA, S.A.
MAPFRE AM- GOOD GOVERNANCE	Ctra. Pozuelo, 50.	MAPFRE VIDA, S.A.	39.4976	100.0000	(A)	(9)
	Majadahonda	OTRAS SOCIEDADES DEL GRUPO	32.7567
	Madrid (Spain)
MAPFRE AM- IBERIAN EQUITIES	Ctra. Pozuelo, 50.	· MAPFRE VIDA, S.A.	62.0743	100.0000	(A)	(9)
	Majadahonda	OTRAS SOCIEDADES DEL GRUPO	21.1911
	Madrid (Spain)
MAPFRE AM-EUROPEAN EQUITIES	Ctra, Pozuelo, 50.	MAPFRE VIDA, S.A.	59.2353	100.0000	(A)	(9)
	Majadahonda	OTRAS SOCIEDADES DEL GRUPO	30.0941
	Madrid (Spain)
MAPFRE AM-MULTI ASSETS STRATEGY	Ctra. Pozuelo, 50.	MAPFRE ESPANA, S.A.	41.6139	100.0000	(A)	9
	Majadahonda	MAPFRE RE, S.A.	43.5891
	Madrid (Spain)	OTRAS SOCIEDADES DEL GRUPO MAPFRE VIDA, S.A.	14.7970 39.9917	40.0701	(A)	(9)
FONDMAPFRE ELECCION DECIDIDA	Ctra. Pozuelo, 50.	OTRAS SOCIEDADES DEL GRUPO	14.1711	13.8699
	Majadahonda Madrid (Spain)
FONDMAPFRE ELECCION MODERADA	Ctra. Pozuelo, 50.	MAPFRE VIDA, S.A.	47.1962	47.5247	(A)	(9)
	Majadahonda	OTRAS SOCIEDADES DEL GRUPO	3.8513	4.0512
	Madrid (Spain)
FONDMAPFRE ELECCION PRUDENTE	Ctra. Pozuelo, 50.	MAPFRE VIDA, S.A.	53.2904	61.6890	(A)	(છ)
	Majadahonda	OTRAS SOCIEDADES DEL GRUPO	2.5858	3.2958
	Madrid (Spain)
FONDMAPFRE BOLSA AMERICA	Ctra. Pozuelo, 50.	MAPFRE VIDA, S.A.	25.2414	28.5234	(A)	(છ)
	Majadahonda	MAPFRE ESPANA, S.A.	21.7388	23.4213
	Madrid (Spain)	OTRAS SOCIEDADES DEL GRUPO	23.1283	23.0218
FONDMAPFRE RENTA DÓLAR	Ctra. Pozuelo, 50.	MAPFRE RE, S.A.	19.7353	16.2513	(A)	(9)
	Majadahonda	MAPFRE ESPANA, S.A.	19.6538	21.7469
	Madrid (Spain)	OTRAS SOCIEDADES DEL GRUPO	28.4332	28.9505
FONDMAPFRE GLOBAL F.I.	Ctra. Pozuelo, 50.	MAPFRE VIDA, S.A.	36.9426	35,6864	(A)	(9)
	Majadahonda	OTRAS SOCIEDADES DEL GRUPO	8.2548	9.8342
	Madrid (Spain)
FONDMAPFRE BOLSA F.I.	Ctra. Pozuelo, 50.	MAPFRE VIDA, S.A.	54.9320	49.3213	(A)	(9)
	Majadahonda	OTRAS SOCIEDADES DEL GRUPO	5.6224	8.0557
	Madrid (Spain)
FONDMAPFRE BOLSA EUROPA F.I	Ctra. Pozuelo, 50.	MAPFRE VIDA, S.A.	16.2085	26.8234	(F)(A)	(F)(9)
	Majadahonda	@ MAPFRE RE, S.A.	21.5721
	Madrid (Spain)	OTRAS SOCIEDADES DEL GRUPO	34.2339	20.0225
FONDMAPFRE BLUE CHIPS, F.I.	Ctra. Pozuelo, 50.	MAPFRE VIDA, S.A.	100.0000	100.0000	(F)(A)	(F)(9)
	Majadahonda
	Madrid (Spain)		39.5452		(F)(A)	(F)(9)
MAPFRE AM- SHORT TERM EURO I	Ctra. Pozuelo, 50.	a MAPFRE ESPANA, S.A. MAPFRE RE, S.A.	27.9984
	Majadahonda	· MAPFRE VIDA, S.A.		100.0000
	Madrid (Spain)	OTRAS SOCIEDADES DEL GRUPO	5.5979
FONDMAPFRE GARANTIA, F.I	Ctra. Pozuelo, 50.	MAPFRE VIDA, S.A.	00.9990		(G)(A)	(G)(S)(S)(S)(S)(S)(S)(S)(S)(S)(S)(S)(S)(S)(S)(S)(S)(S)(S)(S)(S)(S)(S)(S)(S)(S)(S)(S)(S)(S)(S)(S)(S)(S)(S)(S)(S)(S)(S)(S)(S)(S)(S)(S)(S)(S)(S)(S)(S)(S)(S)(S)(S)(S)(S)(S)(S)(S)
	Majadahonda
	Madrid (Spain)
FONDMAPFRE GARANTIA II, F.I	Ctra. Pozuelo, 50.	MAPFRE VIDA, S.A.	99.9971		(G)(A)	(G)(B)
	Majadahonda
	Madrid (Spain)
STABLE INCOME EUROPEAN REAL ESTATE FUND	Ctra. Pozuelo, 50.	MAPFRE ESPAÑA, S.A.	25.8097		(G)(A)	(G)(a)
	Majadahonda	MAPFRE RE, S.A.	21.8305
	Madrid (Spain)	OTRAS SOCIEDADES DEL GRUPO	19.8153
MAPFRE AM-BEHAVORIAL FUND I	Ctra. Pozuelo, 50.	MAPFRE RE, S.A.	23.0369		(G)(A)	(G)(S)
	Majadahonda	OTRAS SOCIEDADES DEL GRUPO	22.2789
	Madrid (Spain)
MAPFRE AM-INCLUSION RESPONSABLE	Ctra. Pozuelo, 50.	MAPFRE ESPAÑA, S.A.	42.4496		(G)(A)	(G)(8)
	Majadahonda	MAPFRE RE, S.A.	34.4592
	Madrid (Spain)	OTRAS SOCIEDADES DEL GRUPO	22.9728
MAPFRE AM-US FORGOTTEN VALUE	Ctra. Pozuelo, 50.	MAPFRE ESPAÑA, S.A.	44.9995		(G)(A)	(G)(a)
	Majadahonda	MAPFRE RE, S.A.	20.9997
	Madrid (Spain)	OTRAS SOCIEDADES DEL GRUPO	19.1664
	BRAZIL
MAPFRE SEGUROS GERAIS S.A.	Avd.Naçoes Unidas, 11711 16.	MAPFRE PARTICIPAÇOES, S.A.	100.0000	100.0000	(A)	(1)
	Andar Brooklin
	São Paulo. (Brazil)
MAPFRE VERA CRUZ CONSULTORIA E	Avd.Naçoes Unidas, 11711 16.	· MAPFRE BRASIL PARTICIPAÇOES,	100.0000		(A)	(1)
ADMINISTRACAO DE FUNDOS LTDA,	Andar Brooklin	S.A.
	São Paulo (Brazil)	MAPFRE HOLDING DO BRASIL LTDA		100.0000
BB MAPFRE PARTICIPAÇOES, S.A.	Avd.Naçoes Unidas, 11711 16.	MAPFRE BRASIL PARTICIPAÇOES,	25,0100(*)	25,0100(*)	(A)	(1)
(En 2018 BB MAPFRE SH1 PARTICIPAÇOES, S.A.)	Andar Brooklin	S.A.
	São Paulo (Brazil)
MAPFRE CAPITALIZAÇAO S.A.	Avd.Naçoes Unidas, 11711 16.	MAPFRE PARTICIPAÇOES, S.A.	100.0000		(A)	(1)
	Andar Brooklin	MAPFRE BRASIL PARTICIPAÇOES,
	São Paulo (Brazil)	S.A.		100.0000
MAPFRE SERVIÇOS S.A	Avd.Mamoré 989, 3º Andar Allphaville	a MAPFRE SEGUROS GERAIS, S.A.	100.0000	100.0000	(A)	(1)
{En 2018 MAPFRE ASSISTENCIA, S.A.)	Centro Industrial e Empresarial Barueri,
	São Paulo (Brazil)

Código seguro de verificación (CSV): xIvfjCSHJswnKZUFv5fe	COPIA ELECTRONICA
Esta es una copia auténtica imprimible de un documento por la CNMV, según el artículo 27.3 c) de la Ley 39/2015, de 2 de octubre. Su autenticidad puede ser contrastada a través de la siquiente dirección: https://sede.mmv/libreAccess/CSV.aspx

		Participation in Capital			Integration
			Percentage		Consolidation	method for
Name	Address	Holder	2019	2018	method	Solvency
	Avd.Naçoes Unidas, 11711 16.		100.0000	100.0000	(A)
MAPFRE PARTICIPAÇOES, S.A. (En 2018 MAPFRE BB SH2 PARTICIPAÇOES, S.A.)	Andar Brooklin São Paulo (Brazil)	MAPFRE BRASIL PARTICIPAÇOES, ડં.A.				(1)
MAPFRE BRASIL PARTICIPAÇÕES, S.A.	Avd.Naçoes Unidas, 11711 16. Andar Brooklin	MAPFRE INTERNACIONAL, S.A. MAPFRE HOLDING DO BRASIL LTDA	99.1700	93.3797 5.7651	(A)	(1)
MAPFRE HOLDING DO BRASIL LTDA Absorbida en 2019 por MAPFRE BRASIL	São Paulo (Brazil) Avda. dos Autonomistas, 701 Vila- Yara - Osasco SP CEP	FANCY INVESTIMENT, S.A. MAPFRE INTERNACIONAL, S.A. ■ MAPFRE, S.A.	0.8300	0.8552 98.7993 0.3314	(H)	(H)
PARTICIPAÇOES S.A.) MAPFRE VIDA S.A.	06020-000 (Brazil) Avd.Naçoes Unidas, 11711 16.	FANCY INVESTIMENT, S.A. MAPFRE PARTICIPAÇOES, S.A.	100.0000	0.8693 100.0000	(A)	ത
	Andar Brooklin São Paulo (Brazil)
MAPFRE INVESTIMENTOS LTDA. En 2018 MAPFRE DISTRIBUIDORA DE TITULOS E VALORES MOBILIARIOS, S.A.)	Avd.Naçoes Unidas, 11711 16. Andar Brooklin São Paulo (Brazil)	MAPFRE INVESTIMENTOS E PARTICIPAÇOES SA MAPFRE HOLDING DO BRASIL LTDA MAPFRE BRASIL PARTICIPAÇOES,	100.0000 0.1000	99.9000 0.1000	(A)	(9)
MAPFRE PREVIDENCIA S.A.	Avda.Mª Coelho Aguiar 215	S.A. MAPFRE PARTICIPAÇOES, S.A.	100.0000		(A)	റി
	Jardim São Luis Bloco F - 2ª andar, São Paulo (Brazil)	® MAPFRE BRASIL PARTICIPAÇOES, S.A.		100.0000
MAPFRE INVESTIMENTOS E PARTICIPAÇÕES, S.A.	Avd.Naçoes Unidas, 11711 17. Andar Brooklin	MAPFRE BRASIL PARTICIPAÇOES, S.A.	100.0000	100.0000	(A)	(1)
ALIANÇA DO BRASIL SEGUROS, S.A.	São Paulo (Brazil) R.Manuel da Nobrega, 12809. Andar, Rio de Janeiro	MAPFRE HOLDING DO BRASIL LTDA BB MAPFRE PARTICIPAÇOES S.A.	100.0000	100.0000	(A)	(1)
BRASIL VEICULOS COMPANHIA DE SEGUROS, S.A. (JR.Senador Dantas, 105 29 parte, 30 e 31. Absorbida en 2019 por MAPFRE SEGUROS GERAIS	São Paulo (Brazil) Andares	· MAPFRE PARTICIPAÇOES, S.A.		100.0000	(H)	(H)
S.A.) BRASILSEG COMPANHIA DE SEGUROS S.A. (En 2018 COMPANHIA DE SEGUROS ALIANÇA DO BRASIL, S.A.)	São Paulo-SP (Brazil) R.Senador Dantas, 105 29 parte, 30 e 31. Andares. São Paulo-SP (Brazil)	BB MAPFRE PARTICIPAÇOES S.A.	100.0000	100.0000	(A)	(7)
MAC INVESTIMENTOS S.A (En 2019 MAPFRE ADMINISTRAÇOES DE	Avenida das Nações Unidas, 12.495 11º Andar Brooklin	MAPFRE INVESTIMENTOS E PARTICIPAÇÕES S.A.	100.0000	100.0000	(A)	(1)
CONSORCIO S.A.) MAPFRE SAUDE LTDA	São Paulo-SP (Brazil) Avenida das Nações Unidas, 12.495 11º Andar Brooklin	MAPFRE BRASIL PARTICIPAÇOES, S.A.	99.9900		(A)	(1)
PROTENSEG CORRETORA DE SEGUROS LTDA	São Paulo-SP (Brazil) Avenida das Nações Unidas, 12.495 11º	MAPFRE HOLDING DO BRASIL LTDA MAPFRE BRASIL PARTICIPAÇOES,	100.0000	99.9900	(A)	(1)
	Andar Brooklin São Paulo-SP (Brazil)	S.A. MAPFRE HOLDING DO BRASIL LTDA		100.0000
	LATAM NORTH
MAPFRE TENEDORA DE ACC, S.A.	Costa del Este, diagonal al Business Park Panama (Panama)	MAPFRE AMERICA CENTRAL, S.A.	100.0000	100.0000	(A)	(3)
MAPFRE AMERICA CENTRAL S.A	Costa del Este, diagonal al Business Park Panama (Panama)	MAPFRE INTERNACIONAL, S.A.	99.9000	99.9000	(A)	(1)
MAPFRE SEGUROS HONDURAS S.A.	Avenida Berlin y Calle Viena, piso 7 Lomas del Guijarro Sur. Edificio Plaza Azul Tegucigalpa, M.D.C. (Honduras)	MAPFRE TENEDORA DE ACC, S.A. MAPFRE AMERICA CENTRAL, S.A.	73.2569 25.1031	73.2569 25.1031	(A)	(9)
MAPFRE PANAMA S.A.	Costa del Este, diagonal al Business Park Panama (Panama)	MAPFRE AMERICA CENTRAL, S.A.	99.3772	99.3772	(A)	(1)
MAPFRE SEGUROS EL SALVADOR, S.A.	Alameda Roosevelt, 3107 Nivel 7 San Salvador (El Salvador)	MAPFRE AMERICA CENTRAL, S.A.	78.1065	78.1065	(A)	(9)
INMOBILIARIA AMERICANA S.A.	Alameda Roosevelt, 31-07 San Salvador (El Salvador)	MAPFRE AMERICA CENTRAL, S.A.	78.9000	78.9000	A	(9)
MAPFRE SEGUROS COSTA RICA S.A.	Barrio Tournon, Editicio Alvasa, 2do. Piso Diagonal al Periodico La República en interseción con Ctra de Guapiles (Ruta 32)	MAPFRE TENEDORA DE ACC, S.A.	100.0000	100.0000		(છ)
MAPFRE SEGUROS GUATEMALA S.A.	San José (Costa Rica) 5a Avenida 5-55 Zona 14 Europlaza Europlaza Torre 4 Nivel 16 y PH.	MAPFRE TENEDORA DE ACC, S.A.	100.0000	100.0000	(A)	(()
MAPFRE SEGUROS NICARAGUA S.A.	Guatemala City (Guatemala) Edificio Invercasa, 1er. Piso Managua (Nicaragua)	MAPFRE TENEDORA DE ACC, S.A.	100.0000	100.0000	(A)	(છ)
MAPFRE DOMINICANA S.A.	Ave Abraham Lincoln, 952 esq. José Amado Soler Ensanche Piantini, Santo Domingo (Dominican Republic)	MAPFRE INTERNACIONAL, S.A. CREDIPRIMAS, S.A.	તેવા જિવેત જેવી જેવી તેમ જ દૂધની ડેરી જેવી સવલતો પ્રાપ્ 0.0001	વેવી જેવી સવલતો પ્રતિષ્ઠા તેમ જ દૂધની ડેરી જેવી સવલતો પ્રાપ્ 0.0001	(A)	(છ)
MAPFRE BHD COMPAÑÍA DE SEGUROS, S.A.	Ave Abraham Lincoln, 952 esq. José Amado Soler Ensanche Piantini, Santo Domingo (Dominican Republic)	MAPFRE DOMINICANA S.A.	51.0000	51.0000	(A)	(છ)
CREDIPRIMAS, S.A.	Ave Abraham Lincoln, 952 esq. José Amado Soler Ensanche Piantini, Santo Domingo (Dominican Republic)	MAPFRE BHD COMPAÑIA DE SEGUROS S.A.	100.0000	100.0000	(A)	(છ)
MAPFRE MEXICO S.A. (En 2018 MAPFRE TEPEYAC S.A.)	Avenida Paseo de la Reforma 243 Colonia Cuauhtemoc Delegación Cuauhtemoc. Mexico City, 06500 (Mexico)	· MAPFRE INTERNACIONAL, S.A. GRUPO CORPORATIVO LML S.A.	55.6602 44.3398	55.6602 44.3398	(A)	(7)
GRUPO CORPORATIVO LML S.A. DE C.V.	Avenida Paseo de la Reforma 243 Colonia Cuauhtemoc Delegación Cuauhtémoc. Mexico City, 06500 (Mexico)	MAPFRE INTERNACIONAL, S.A.	100.0000	100.0000	(A)	(1)

Código seguro de verificación (CSV): xlvfjCSHJswnKZUFv5fe	COPIA ELECTRÓNICA
Esta es una copia auténtica imprimible de un doumento electrónico archivado por la artículo 27.3 c) de la Ley 39/2015, de 2 de octubre. Su autenticidad puede ser contrastada a través de la siguiente dirección: https://sede.cnmv/LibreAcceso/CSV.aspx

		Participation in Capital				Integration
			Percentage		Consolidation,	method for
Name	Address	Holder	2019	2018	method	Solvency
MAPFRE UNIDAD DE SERVICIOS S.A. DE C.V.	Avenida Paseo de la Reforma 243 Colonia Cuauhtemoc Delegación Cuauhtémoc.	MAPFRE MEXICO S.A.	99.9982	99.9982	(A)	(1)
MAPFRE DEFENSA LEGAL S.A. DE C.V. (En 2018 MAPFRE ASSET DEFENSA LEGAL	Mexico City, 06500 (Mexico) Avenida Paseo de la Reforma 243 Colonia Cuauhtémoc Delegación Cuauhtémoc.	MAPFRE MEXICO S.A.	100.0000	100.0000	(A)	(1)
MEXICANA S.A. DE C.V.) MAPFRE TEPEYAC INC.	Mexico City, 06500 (Mexico) 109 Este San Ysidro Blvd No. 65	MAPFRE MEXICO S.A.	100.0000	100.0000	(A)	(7)
MAPFRE SERVICIOS MEXICANOS S.A.	San Isidro California, (U.S.A) Avenida Paseo de la Reforma 243 Colonia Cuauhtémoc Delegación Cuauhtémoc.	MAPFRE MEXICO S.A.	000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000	99.9900	(A)	(7)
CESVI MÉXICO, S.A.	Mexico City, 06500 {Mexico} Calle 1 Sur No. 101 Parque Industrial Toluca 2000	MAPFRE MEXICO S.A.	16.6700	16.6700	(D)	(9)
MAPFRE FIANZAS S.A.	Toluca Mexico, State of Mexico (Mexico) Avenida Paseo de la Reforma 243 Colonia Cuauhtemoc Delegación Cuauhtemoc. Mexico City, 06500 {Mexico}	MAPFRE MEXICO S.A.	100.0000	100.0000	(A)	(7)
	LATAN SOUTH
MAPFRE ARGENTINA HOLDING S.A.	Avda. Juana Manso, 205 C 1107CBE Puerto Madero	MAPFRE INTERNACIONAL, S.A. APOINT S.A.	99.9997 0.0003	99.9997 0.0003	(A)	(1)
MAPFRE ARGENTINA SEGUROS S.A.	Buenos Aires (Argentina) Avda. Juana Manso, 205 C 1107CBE Puerto Madero Buenos Aires (Argentina)	MAPFRE ARGENTINA HOLDING S.A.	00.9988	99.9988	(A)	(1)
CLUB MAPFRE ARGENTINA S.A.	Avda. Juana Manso, 205 C 1107CBE Puerto Madero Buenos Aires (Argentina)	MAPFRE ARGENTINA HOLDING S.A. MAPFRE ARGENTINA VIDA S.A.	97.0000 3.0000	97.0000 3.0000	(A)	(1)
MAPFRE ARGENTINA SEGUROS DE VIDA S.A.	Avda. Juana Manso, 205 C 1107CBE Puerto Madero Buenos Aires (Argentina)	MAPFRE INTERNACIONAL S.A. MAPFRE ARGENTINA HOLDING S.A.	64.0000 36.0000	64.0000 36.0000	(A)	(છ)
CESVI ARGENTINA, S.A.	Calle 9 y 17. Parque Ind.Pilar Buenos Aires (Argentina)	· MAPFRE ARGENTINA SEGUROS S.A.	60.6400	60.6400	(A)	(1)
MAPFRE CHILE SEGUROS S.A.	Isidora Goyenechea 3520 p 16 Las Condes Santiago de Chile (Chile)	@ MAPFRE INTERNACIONAL S.A.	100.0000	100.0000	(A)	(1)
MAPFRE CHILE ASESORIAS, S.A	Isidora Goyenechea 3520 p 16 Las Condes Santiago de Chile (Chile)	MAPFRE CHILE SEGUROS S.A. MAPFRE INTERNACIONAL S.A.	વેવી જેવી સવલતો પ્રતિષ્ઠા જિલ્લામાં આવેલું એક ગામના લોકોનો મુખ્ય વ્યવસાય ખેતી, ખેતમજૂરી તેમ જ પશુપાલન છે. આ ગામમાં પ્રાથમિક શાળા, પંચાયતઘર, આંગણવાડી તેમ જ દૂધની ડેરી જેવી સ 0.0001	30.9999 0.0001	(A)	(1)
MAPFRE COMPAÑIA DE SEGUROS GENERALES DE Isidora Goyenechea 3520 p 16 CHILE S.A.	Las Condes Santiago de Chile (Chile)	MAPFRE CHILE SEGUROS S.A. MAPFRE CHILE ASESORIAS, S.A.	87.2900 127100	87.2900 12.7100	(A)	(1)
MAPFRE CHILE VIDA, S.A.	Isidora Goyenechea 3520 p 16 Las Condes Santiago de Chile (Chile)	MAPFRE INTERNACIONAL S.A.	100.0000	100.0000	(A)	(a)
MAPFRE COMPAÑÍA DE SEGUROS DE VIDA DE CHILE S.A.	Isidora Goyenechea 3520 p 16 Las Condes Santiago de Chile (Chile)	MAPFRE CHILE VIDA S.A. MAPFRE INTERNACIONAL S.A.	99.9968 0.0032	99.9968 0.0032	(A)	(8)
MAPFRE SEGUROS GENERALES DE COLOMBIA S.A.	Carrera, 14, nº 96-34 Santa Fé de Bogotá (Colombia)	MAPFRE INTERNACIONAL, S.A. APOINT S.A. MAPFRE COLOMBIA VIDA SEGUROS S.A.	93.7178 6.2768 0.0021	93.7178 6.2768 0.0021	(A)	(1)
CREDIMAPFRE S.A.	Carrera, 14, nº 96-34 Santa Fé de Bogotá (Colombia)	· MAPFRE SEGUROS GENERALES DE COLOMBIA S.A.	100.0000	100.0000	(A)	(1)
MAPFRE COLOMBIA VIDA SEGUROS S.A. (En 2018 MAPFRE COLOMBIA VIDA S.A.)	Carrera, 14, nº 96-34 Santa Fé de Bogotá (Colombia)	MAPFRE INTERNACIONAL, S.A. APOINT S.A.	94.3541 5.6459	94.3541 5.6459	(A)	(1)
CESVI COLOMBIA, S.A.	Carrera 87, Num.15-87 Santa Fé de Bogotá(Colombia)	MAPFRE SEGUROS GENERALES DE COLOMBIA S.A. MAPFRE COLOMBIA VIDA SEGUROS	6.4434 62.3309	5.4434 62.3309	(A)	(1)
MAPFRE SERVICIOS EXEQUIALES SAS	Carrera, 14, nº 96-34	S.A. CREDIMAPFRE S.A.	100.0000	100.0000	(A)	(1)
MAPFRE ATLAS COMPAÑÍA DE SEGUROS, S.A.	Santa Fé de Bogotá (Colombia) Kennedy e Norte, Justino Comejo y Avda, Luis @ MAPFRE INTERNACIONAL S.A. Orrantia. Edificio Torres Atlas Guayaquil (Ecuador)		60.0000	60.0000	(A)	(8)
MAPFRE PARAGUAY COMPAÑÍA DE SEGUROS S.A. Av.Mariscal López, 910		MAPFRE INTERNACIONAL S.A.	89.5400	89.5400	(A)	(a)
MAPFRE PERÚ COMPAÑÍA DE SEGUROS Y REASEGUROS S.A.	Asunción (Paraguay) Av.Veintiocho de Julio, 873 Miraflores- Lima 18 (Peru)	MAPFRE INTERNACIONAL S.A.	99.2900	09.2900	(A)	(1)
MAPFRE PERÜ ENTIDAD PRESTADORA DE SALUD	Av.Veintiocho de Julio, 873 Miraflores- Lima 18 (Peru)	MAPFRE INTERNACIONAL S.A. MAPFRE PERÚ CIA. SEGUROS Y REASEGUROS S.A.	98.5900 1.4100	98.5900 1.4100	(A)	(છ)
MAPFRE PERÚ VIDA, COMPAÑA DE SEGUROS Y REASEGUROS, S.A.	Av.Veintiocho de Julio, 873 Miraflores- Lima 18 (Peru)	MAPFRE INTERNACIONAL S.A.	67.4071	67.4071	(A)	(1)
CORPORACION FUNERARIA, S.A. (En 2018 CORPORACION FINISTERRE, S.A.)	Av.Veintiocho de Julio, 873 Miraflores- Lima 18 (Peru)	MAPFRE PERÚ VIDA S.A.	100.0000	100.0000	(A)	(1)
APOINT S.A.	Col. 993 Piso 3 Montevideo (Uruguay)	MAPFRE INTERNACIONAL S.A.	100.0000	100.0000	(A)	(8)
MAPFRE URUGUAY SEGUROS S.A. (En 2018 MAPFRE LA URUGUAYA S.A.)	Juncal 1385 piso 2 Montevideo (Uruquay)	MAPFRE INTERNACIONAL S.A.	100.0000	100.0000	(A)	(9)

			Participation in Capital			Integration method for
			Percentage		Consolidation
Name	Address	Holder	2019	2018	method	Solvency
MAPFRE LA SEGURIDAD C.A. DE SEGUROS (En 2018 MAPFRE LA SEGURIDAD S.A.)	Avenida Francisco de Miranda, Torre Financiera Caracas, piso 14, Urbanización La Castellana.	MAPFRE INTERNACIONAL S.A.	99.5159	99.5159	(A)	(9)
CENTRO DE FORMACION PROFESIONAL SEGUROS A SEGURIDAD C.A. En 2018 CEFOPROSEG C.A)	Chacao, Estado Miranda (Venezuela) Avenida Francisco de Miranda. Torre Financiera Caracas, piso 14, Urbanización La Castellana.	MAPFRE LA SEGURIDAD C.A. DE SEGUROS	100.0000	100.0000	(A)	(છ)
INVERSORA SEGURIDAD-FINANCIADORA DE PRIMAS, C.A. En 2018 INVERSORA SEGURIDAD C.A.)	Chacao, Estado Miranda (Venezuela) Avenida Francisco de Miranda, Torre Financiera Caracas, piso 14, Urbanización La Castellana.	MAPFRE LA SEGURIDAD C.A. DE SEGUROS	100.0000	100.0000	(A)	(છ)
CLUB MAPFRE S.A.	Chacao, Estado Miranda (Venezuela) Avenida Francisco de Miranda,	MAPFRE LA SEGURIDAD C.A. DE	100.0000	100.0000	(A)	(છ)
	Torre Financiera Caracas, piso 14, Urbanización La Castellana. Chacao, Estado Miranda (Venezuela)	SEGUROS
AUTOMOTRIZ MULTISERVICAR-VENEZUELA, C.A. En 2018 AUTOMOTRIZ MULTISERVICAR, C.A.)	Avenida Francisco de Miranda, Torre Financiera Caracas, piso 14, Urbanización La Castellana. Chacao, Estado Miranda (Venezuela)	MAPFRE LA SEGURIDAD C.A. DE SEGUROS	97.0000	97.0000	(A)	(a)
AMA-ASISTENCIA MEDICA ADMINISTRADA, C.A.	Avenida Francisco de Miranda, Torre Financiera Caracas, piso 14, Urbanización La Castellana.	MAPFRE INTERNACIONAL S.A.	99.7000	99.7000	(A)	(8)
JNIDAD EDUCATIVA D.R FERNANDO BRAVO PEREZ Avenida Francisco de Miranda, . A	Chacao, Estado Miranda (Venezuela) Torre Financiera Caracas, piso 14, Urbanización La Castellana. Chacao, Estado Miranda (Venezuela)	MAPFRE LA SEGURIDAD C.A. DE SEGUROS	99.7000	99.7000	(A)	(છ)
MAPFRE INSURANCE COMPANY OF FLORIDA	NORTH AMERICA 5959 Blue Lagoon Drive, Suite 400,	COMMERCE INSURANCE	100.0000	100.0000	(A)	(7)
MAPFRE INSURANCE COMPANY	Miami (U.S.A.) 100 Campus Drive New Jersey	COMMERCE INSURANCE	100.0000	100.0000	(A)	(7)
MAPFRE INTERMEDIARIES	07932-2007 (U.S.A.) 5959 Blue Lagoon Drive, Suite 400,	COMMERCE INSURANCE	100.0000	100.0000	(A)	(7)
MAPFRE USA CORPORATION INC	Miami (U.S.A.) 211 Main Street, Webster,	MAPFRE INTERNACIONAL, S.A.	100.0000	100.0000	(A)	(1)
THE COMMERCE INSURANCE COMPANY	MA 01570 (U.S.A) 211 Main Street, Webster, MA 01570 (U.S.A)	MAPFRE USA CORPORATION	100.0000	100.0000	A	(7)
THE CITATION INSURANCE COMPANY	211 Main Street, Webster, MA 01570 (U.S.A)	MAPFRE USA CORPORATION	100.0000	100.0000	(A)	(7)
MAPFRE TECH USA CORPORATION	211 Main Street, Webster, MA 01570 (U.S.A)	MAPFRE USA CORPORATION	100.0000	100.0000	(A)	(7)
ACIC HOLDINGS COMPANY, INC.	215 Main Street, Webster, MA 01570 (U.S.A)	MAPFRE USA CORPORATION	100.0000	100.0000	(A)	(1)
AMERICAN COMMERCE INSURANCE COMPANY	3590 Twin Creeks Drive, Columbus, OH 43204 (U.S.A)	ACIC HOLDINGS	100.0000	100.0000	(A)	(7)
MM REAL ESTATE, LLC	Blue Lagoon, Drive Suite, 200 Miami (U.S.A)	COMMERCE INSURANCE	100.0000	100.0000	(A)	(7)
THE COMMERCE WEST INSURANCE COMPANY	4301 Haclenda Drive, Suite 200, Pleasanton, CA 94588 (U.S.A)	ACIC HOLDINGS	100.0000	100.0000	(A)	(1)
MAPFRE INSURANCE COMPANY OF NEW YORK (Salida en 2019 por venta)	20 Main Street Hempstead, NY 11550 (U.S.A)	ACIC HOLDINGS		100.0000	(H)	(H)
BIGELOW & OLD WORCESTER, LLC	211 Main Street, Webster, MA 01570 (U.S.A)	COMMERCE INSURANCE	100 በጠበብ	100 0000	(A)	(1)
BFC HOLDING CORPORATION	211 Main Street, Webster, MA 01570 (U.S.A)	MAPFRE USA CORPORATION	100.0000	100.0000	(A)	(1)
VERTI INSURANCE COMPANY	211 Main St, Webster, MA 01570 (U.S.A)	MAPFRE USA CORPORATION	100.0000	100.0000	(A)	(7)
MAPFRE PRAICO CORPORATION	Urb. Tres Monjitas Industrial 297 Avda.Carlos Chardón Hato Rey San Juan (Puerto Rico)	MAPFRE INTERNACIONAL, S.A.	100.0000	100.0000	(A)	(1)
MAPFRE PRAICO INSURANCE COMPANY	Urb. Tres Monjitas Industrial 297 Avda.Carlos Chardón Hato Rey San Juan (Puerto Rico)	· MAPFRE PRAICO CORPORATION	100.0000	100.0000	(A)	(1)
MAPFRE PAN AMERICAN INSURANCE COMPANY	Urb. Tres Monjitas Industrial 297 Avda.Carlos Chardón Hato Rey San Juan (Puerto Rico)	MAPFRE PRAICO CORPORATION	100.0000	100.0000	(A)	(1)
MAPFRE INSURANCE AGENCY OF PUERTO RICO, INC.	Urb. Tres Monjitas Industrial 297 Avda.Carlos Chardón Hato Rey San Juan (Puerto Rico)	E MAPFRE PRAICO CORPORATION	100.0000	100.0000	(A)	(1)
MAPFRE FINANCE OF PUERTO RICO CORP.	Urb. Tres Monjitas Industrial 297 Avda,Carlos Chardón Hato Rey San Juan (Puerto Rico)	MAPFRE PRAICO CORPORATION	100.0000	100.0000	(A)	(1)
MAPFRE LIFE INSURANCE COMPANY OF PUERTO RICO (En 2018 MAPFRE LIFE INSURANCE COMPANY)	Urb. Tres Monjitas Industrial 297 Avda.Carlos Chardón Hato Rey San Juan (Puerto Rico)	MAPFRE PRAICO CORPORATION	100.0000	100.0000	(A)	(1)

Código seguro de verificación (CSV): xIvfjCSHJswnKZUFv5fe	COPIA ELECTRONICA
Esta es una copia auténtica imprimible de un doumento electrónico archivado por la crículo 27.3 c) de la Ley 39/2015, de 2 de octubre. Su autenticidad puede ser contrastada a través de la siguiente dirección: https://sede.cnmv/LibreAccess/CSV.aspx

		Participation in Capital				Integration
		Holder	Percentage		Consolidation	method for
Name	Address		2019	2018	method	Solvency
MAPFRE SOLUTIONS, INC.	Urb. Tres Monjitas Industrial 297 Avda.Carlos Chardón Hato Rey	MAPFRE PRAICO CORPORATION	100.0000	100.0000	(A)	(1)
MULTISERVICAR INC	San Juan (Puerto Rico) Calle Celestial Esq. Joaquina Bo. Cangrejo Arriba Carolina (Puerto Rico)	MAPFRE PRAICO CORPORATION	100.0000	100.0000	(A)	(1)
	EURASIA
VERTI VERSICHERUNG AG	Rheinstraße 7a 14513 Teltow	@ MAPFRE INTERNACIONAL, S.A.	100.0000	100.0000	(A)	(1)
VERTI ASSICURIZIONI S.P.A.	(Germany) Via Alessandro Volta, 16 20093 Cologno Monzese (MI) (Italy)	MAPFRE INTERNACIONAL, S.A.	100.0000	100.0000	(A)	(1)
MAPFRE MIDDLESEA P.L.C.	Middle Sea House Floriana JTL, 16 (Malta)	MAPFRE INTERNACIONAL, S.A.	54.5627	54.5627	(A)	(1)
MAPFRE M.S.V. LIFE P.L.C.	Middle Sea House Floriana FRN 9010 (Malta)	MAPFRE MIDDLESEA INSURANCE P.L.C.	50.0000	50.0000	(A)	(1)
BEE INSURANCE MANAGEMENT LTD	4th Floor Development House st.Anne Street Floriana FRN 9010 (Malta)	MAPFRE MIDDLESEA INSURANCE P.L.C.	100.0000	100.0000	(A)	(1)
GROWTH INVESTMENTS LIMITED	Pjazza Papa Giovanni XXIII, Floriana, FRN 1420,(Malta)	MAPFRE M.S.V. LIFE P.L.C.	100.0000	100.0000	(A)	(1)
CHURCH WARF PROPERTIES	Middle Sea House, St Publius Street Floriana FRN 1442 (Malta)	MAPFRE MIDDLESEA INSURANCE P.L.C.	50.0000	50.0000	(B)	(9)
EURO GLOBE HOLDINGS LIMITED	Middle Sea House, St Publius Street Floriana FRN 1442 (Malta)	MAPFRE M.S.V. LIFE P.L.C. MAPFRE MIDDLESEA INSURANCE P.L.C.	50.0000 100.0000	50.0000 100.0000	(B)	(9)
EUROMED RISKS SOLUTIONS LIMITED	4th Floor Development House st Anne Street	BEE INSURANCE MANAGEMENT LTD	100.0000	100.0000	(A)	(1)
MAPFRE SIGORTA, A.S.	Floriana FRN 9010 {Malta} Yenişehir Mah. Irmak Cad. No:11. 34435	MAPFRE INTERNACIONAL, S.A.	99.7450	99.7450	(A)	(1)
MAPFRE YASAM SIGORTA, A.S.	Salipazari Istanbul (Turkey) Yenişehir Mah. İrmak Cad. No:11. 34435	MAPFRE SIGORTA, A.S.	99.5000	99.5000	(A)	(1)
GENEL SERVIS YEDEK PARCA DAGITIM TICARET A.S.	Salipazari Istanbul (Turkey) Çevreyolu Caddesi No.2 34020 Bayrampaşa	MAPFRE SIGORTA, A.S.	51.0000	51.0000	(A)	(1)
(En 2018 GENEL SERVIS A.S.) MAPFRE INSULAR INSURANCE CORPORATION	Istanbul (Turkey) Acacia Ave Mandrigal Business Park Ayala Alabarg MuntinlupaCity (Philippines)	MAPFRE INTERNACIONAL, S.A.	74.9384	74.9384	(A)	(9)
PT ASURANSI BINA DANA ARTA TBK	Plaza ABDA 27 Th floor Jl. Jend. Sudirman Kav. 59	MAPFRE INTERNACIONAL, S.A.	62.3264	62.3267	(A)	(9)
ASSISTANCE	JAKARTE 12190 (Indonesia)
	Ctra. Pozuelo, 52	MAPFRE, S.A.	99.9970	99.9970	(A)	(1)
MAPFRE ASISTENCIA COMPANIA INTERNACIONAL DE SEGUROS Y REASEGUROS, S.A.	Majadahonda Madrid (Spain)	MAPFRE ESPANA, S.A.	0.0030	0.0030
IBERO ASISTENCIA, S.A.	Edifício Europa, Av. José Malhoa, 16 F, 7%, 1070-159 Lisbon, (Portugal)	MAPFRE ASISTENCIA, S.A.	100.0000	100.0000	(A)	(1)
MAPFRE ASSISTENCIA LTDA	Alameda Asia, 42. Tamboré Santana de Parnaiba São Paulo (Brazil)	MAPFRE ASISTENCIA, S.A. MAPFRE HOLDING DO BRASIL LTDA MAPFRE BRASIL PARTICIPACOES, SA.	99.9990 0.0010	ള്ള ഏറ്റവും വ 0.0010	(A)	(1)
MAPFRE SOLUTIONS DO BRASIL LTDA	Alameda Mamore 989. Alphaville Barueri São Paulo (Brazil)	MAPFRE ASSISTENCIA LTDA IBEROASISTENCIA S.A.	99.9999 0.0010	વેજે વિવેધી વિસ્તારમાં 0.0010	(A)	(1)
AFRIQUE ASSISTANCE, S.A.	Immeuble Tamayouz, 4eme Etage, 1082 Centre Urbain Nord Tunis 1002 (Tunisia)	MAPFRE ASISTENCIA, S.A.	49.0000	49.0000	(A)	(1)
SERVICIOS GENERALES VENEASISTENCIA, S.A.	4ta transversal de Motecristo, Edificio Axxa, Planta Baja, Los Dos Caminos, Caracas, (Venezuela)	MAPFRE ASISTENCIA, S.A. MAPFRE RE, S.A.	99.9980 0.0020	00.9980 0.0020	(A)	(1)
ANDIASISTENCIA COMPAÑÍA DE ASÍSTENCIA DE LOS ANDES, S.A.	Carrera 14 N 96 -34 Piso 2 Bogotá (Colombia)	MAPFRE ASISTENCIA, S.A. BEROASISTENCIA S.A.	98.0900 1.9100	98.0900 1.9100	(A)	(1)
FEDERAL ASSIST COMPANY	7300 Corporate Center Drive, Sulte 601 Miami	MAPFRE ASSISTANCE USA INC.	100.0000	100.0000	(A)	(1)
IBEROASISTENCIA, ARGENTINA S.A.	Florida 33126 (U.S.A.) Lavalle 344/346/346/348, PB y 3° Ciudad de Buenos Aires	MAPFRE ASISTENCIA, S.A. · IBEROASISTENCIA S.A.	98.4200 1.5800	98.4200 1.5800	(A)	(1)
SUR ASISTENCIA, S.A.	(Argentina) Av.Apoquindo 4499 Santiago de Chile (Chile)	MAPFRE ASISTENCIA, S.A. BEROASISTENCIA S.A.	99.0000 1.0000	99.0000 1.0000	(A)	(1)
IBEROASISTENCIA, S.A.	Ctra, Pozuelo, 52 Majadahonda. Madrid (Spain)	MAPFRE ASISTENCIA, S.A. MAPFRE ESPANA, S.A.	99.9300 0.0700	99.9300 0.0700	(A)	(1)
IRELAND ASSIST, LTD	22-26 Prospect Hill Galway (Ireland)	MAPFRE ASISTENCIA, S.A.	100.0000	100.0000	(A)	(1)
GULF ASSIST, B.S.C.	Manama Centre Building	MAPFRE ASISTENCIA, S.A.	74.6250	74.6250	(A)	(1)
INSURE AND GO	Manama (Bahrain) 1 Victoria Street, Bristol Bridge Bristol BS1 6AA (United Kingdom)	MAPFRE ASISTENCIA, S.A.	100.0000	100.0000	(A)	(1)

Código seguro de verificación (CSV): xIvfjCSHJswnKZUFv5fe	COPIA ELECTRONICA
Esta es una copia auténtica imprimible de un documento por la CNMV, según el artículo 27.3 c) de la Ley 39/2015, de 2 de octubre. Su autenticidad puede ser contrastada a través de la siquiente dirección: https://sede.mmv/libreAccess/CSV.aspx

		Participation in Capital				Integration
			Percentage		Consolidation	method for
Name	Address	Holder	2019	2018	method	Solvency

INSURE AND GO AUSTRALIA	Suite4 Level 1, 19 Harris Street, Pyrmont NSW 2009 Sydney, NSW 2000 (Australia)	MAPFRE ASISTENCIA, S.A.	100.0000	100.0000	(A)	(1)
TRAVEL CLAIMS SERVICES LIMITED	1 Victoria Street, Bristol Bridge Bristol BS1 6AA (United Kingdom)	INSURANCE AND GO	100.0000	100.0000	(A	(1)
EUROSOS ASSISTANCE, S.A.	473 Messogion Avenue 15343 Agia Paraskevi.	IBEROASISTENCIA S.A. MAPFRE ASISTENCIA, S.A.	0.5000 99.5000	0.5000 99.5000	(A)	(1)
CARIBE ASISTENCIA, S.A.	Athens (Greece) Avda. Tiradentes Esq.Pres. Gonzalez. Edif.La Cumbre. Ens. Naco.Domingo	MAPFRE ASISTENCIA, S.A.	83.5823	83.5823	(A)	(1)
ECUASISTENCIA, S.A.	(Dominican Republic) Avda.Doce de Octubre, N42 -562 N42-562 y Luis Cordero Quito (Ecuador)	MAPFRE ASISTENCIA, S.A. ANDIASISTENCIA S.A.	99.2600 0.7399	99.2800 0.7399	(A)	(1)
CONSULTING DE SOLUCIONES Y TECNOLOGIAS SIAM, S.A.	Ctra, Pozuelo, 52 Majadahonda Majadahonda. Madrid (Spain)	MAPFRE ASISTENCIA, S.A. BEROASISTENCIA S.A.	99.9259 0.0741	09.9259 0.0741	A	(1)
PERU ASISTENCIA, S.A.	Av. 28 de Julio No. 873 ORB. Leuro Lima - Miraflores Lima (Peru)	MAPFRE ASISTENCIA, S.A. IBEROASISTENCIA S.A.	09.9856 0.0144	99.9856 0.0144	(A)	(1)
MEXICO ASISTENCIA, S.A.	Av. Insurgentes Sur no.2453 Piso 15, Col. Tizapán San Angel Deleg. Alvaro Obregon. 01090 Mexico City (Mexico)	Ca MAPFRE ASISTENCIA, S.A.	00.9998	99.9998	(A)	(1)
ALLMAP ASSIST GESELLSCHAFT FUR BEISTANDSLEISTUNGEN MBH	Im Rosengarten, 256 61118 Bal Vilbel (Germany)	MAPFRE ASISTENCIA, S.A. IBEROASISTENCIA S.A.	99.9500 0.0500	09.9500 0.0500	(A)	(1)
PANAMA ASISTENCIA, S.A.	Costa del Este - Avenida la Rotonda, Torre GMT, Piso 1 - Edificio Mapfre Panama City (Panama)	· MAPFRE ASISTENCIA	84.0000	82.0700	(A)	(1)
TUR ASSIST, LTD.	19 Mayıs Cd.Ismet Öztürk Sk.Şişli Plaza Öfis Blokları E Blok B-2 Şişli İstanbul (Turkey)	MAPFRE ASISTENCIA, S.A. IBEROASISTENCIA S.A.	99.6500 0.3500	99.6500 0.3500	(A)	(1)
JRUGUAY ASISTENCIA,S.A.	Plaza Cagancha 1335, oficina 901 Montevideo (Uruguay)	MAPFRE ASISTENCIA, S.A. BEROASISTENCIA S.A.	97.9000 2.1000	97.9000 2.1000	(A)	(1)
QUETZAL ASISTENCIA, S.A.	8a. Ave. 3-80 Zona 14 Edificio La Rambla II nivel 5 Of. 5-2 (Guatemala)	MAPFRE ASISTENCIA, S.A.	99.9920	99.9920	(A)	(1)
EL SALVADOR ASISTENCIA, S.A.	Alameda Roosevelt No. 3107 Edifficio La Centro Americana, Nivel 7. San Salvador (El Salvador)	MAPFRE ASISTENCIA, S.A. · IBEROASISTENCIA S.A.	99.9900 0.0100	99.9900 0.0100	(A)	(1)
LC MAPFRE WARRANTY	Denisovskiy Pereulok 26 105005, Moscow (Russia)	MAPFRE ASISTENCIA, S.A.	100.0000	100.0000	(A)	(1)
NICASSIT, S.A.	Edificio Invercasa, Torre II, 5to. piso, modulo # 501 Managua, (Nicaragua)	MAPFRE ASISTENCIA, S.A.	100.0000	100.0000	(A)	(1)
BENELUX ASSIST, S.A.	Rue de Treves, 45 Brussels, (Belgium)	MAPFRE ASISTENCIA, S.A.	100.0000	100.0000	(A)	(1)
MAPFRE WARRANTY S.P.A.	Strada Trossi 66 13971 Verone (Italy)	MAPFRE ASISTENCIA, S.A.	100.0000	100.0000	(A)	(1)
MAPFRE WARRANTIES	Route des Trois Cantons 11 18399 Windhoj (Luxembourg)	MAPFRE WARRANTY S.P.A.	100.0000	100.0000	(A)	(1)
NORASSIST, INC D/B/A ROAD CANADA	2445 Eagle Steet North Cambridge. ON N3H 4R7, (Canada)	MAPFRE ASISTENCIA, S.A.	100.0000	100.0000	(A	(1)
D/B/A ROAD AMERICA MOTOR CLUB	7300 Corporate Center Drive, Suite 601 Miami Florida 33126 (U.S.A.)	MAPFRE ASISTENCIA, S.A.	100.0000	100.0000	(A)	(1)
ROAD CHINA ASSISTANCE Co, LTD	RM 603, Zhongyu Plaza, A6 North Gongti Road, Chaoyang District, Beijing, PR (China)	MAPFRE ASISTENCIA, S.A.	100.0000	100.0000	(A)	(1)
MAPFRE ABRAXAS SOFTWARE, LTD	9, Blenheim Court Beaufort Park Almondsbury, Bristol BS32 4NE (United Kingdom)	MAPFRE ASISTENCIA, S.A.	100.0000	100.0000	(A)	(1)
ABRAXAS INSURANCE	1 Victoria Street, Bristol Bridge Bristol BS1 6AA (United Kingdom)	MAPFRE ABRAXAS SOFTWARE, LTD	100.0000	100.0000	(A)	(1)
MAPFRE WARRANTY UK LIMITED	1 Victoria Street, Bristol Bridge Bristol BS1 6AA (United Kingdom)	MAPFRE ABRAXAS SOFTWARE, LTD	100.0000	100.0000	(A)	(1)
HOME 3	1 Victoria Street, Bristol Bridge Bristol BS1 6AA (United Kingdom)	MAPFRE ABRAXAS SOFTWARE, LTD	100.0000	100.0000	(A)	(1)
NDIA ROADSIDE ASSISTANCE PRIVATE LIMITED	205,Hyde Park, Sakivihar road Andheri East Munbai	MAPFRE ASISTENCIA, S.A. IBEROASISTENCIA S.A.	99.6300 0.3700	99.6300 0.3700	(A)	(1)
ARABA ASSIST FOR LOGISTIC SERVICES	Maharashtra (India)-400072 Abdel Hamid Sharaf Street, The plenary Center, Bldg. No. 74, 2nd floor P.O. Box 5906	MAPFRE ASISTENCIA, S.A.	100.0000	100.0000	(A)	(1)
	Amman (11953) - (Jordan)

Código seguro de verificación (CSV): xIvfjCSHJswnKZUFv5fe	COPIA ELECTRONICA
Esta es una copia auténtica imprimible de un doumento por la CNMV, según el artículo 27.3 c) de la Ley 39/2015, de 2 de octubre. Su autenticidad puede ser contrastada a través de la siquiente dirección: https://sede.cnmv/LibreAccess/CSV.aspx

	Participation in Capital				Integration
			Percentage		Consolidation	method for
Name	Address	Holder	2019 2018		method	Solvency
ROADSIDE ASSIST ALGERIE SPA	45, Rue des Freres Adessalami 5eme étage.	MAPFRE ASISTENCIA, S.A.	60.3000	60.3000	(A)	(1)
	Vieux Kouba.	IBEROASISTENCIA S.A.	0.4000	0.4000
	Algiers 16050 (Argelia)	CONSULTING SOL. Y TEC. SIAM S.A.	0.3000	0.3000
NILE ASSIST	18th Floor, Apartment No. 1804 of Holiday	MAPFRE ASISTENCIA, S.A.	98.0000	98.0000	(A)	(1)
	Inn Maadi Hotel building Comeish Maadi Cairo - (Egypt)	IBEROASISTENCIA S.A. CONSULTING SOL. Y TEC. SIAM S.A.	1.0000 1.00000	1.0000 1.0000
MAPFRE ASISTENCIA LIMITED	RM 1101-02 8 Jordan Road	MAPFRE ASISTENCIA, S.A.	100.0000	100.0000	(A)	(1)
	Yaumatei, Kowloon
	(Hong Kong)
AAPFRE ASISTENCIA COMPANY LIMITED	10F., No.73, Zhouzi St., Neihu Dist.,	MAPFRE ASISTENCIA, S.A.	100.0000	100.0000	(A)	(1)
MIDDLESEA ASSIST LIMITED	Taipei City 114 - (Taiwan)
	18ª, Europa Centre, John Lopez Str Floriana, FRN 1400, (Malta)	MAPFRE ASISTENCIA, S.A. MIDDLESEA INSURANCE P.L.C.	51.0000 49.0000	51.0000 49.0000	(A)	(1)
NSURE & GO INSURANCE SERVICES USA CORP.	7300 Corporate Center Drive, Suite 601	MAPFRE ASSISTANCE USA INC	100.0000	100.0000	(A)	(1)
	Miami, FL 33126 (U.S.A)
MAPFRE ASSISTANCE USA INC.	7300 Corporate Center Drive, Suite 601	MAPFRE ASISTENCIA, S.A.	100.0000	100.0000	(A)	(1)
	Miami, FL 33126 (U.S.A)
MAPFRE WARRANTY CORPORATION OF FLORIDA	5959 Blue Lagoon Drive, Suite 400	MAPFRE ASSISTANCE USA INC	100.0000	100.0000	(A)	(1)
CENTURY AUTOMOTIVE SERVICES COMPANY	Miami, FL 33126 (U.S.A) 6565 Americas Parkway NE. Suite 1000.	MAPFRE ASSISTANCE USA INC	100.0000	100.0000	(A)	(1)
	Albuquerque
	NM 87110 (U.S.A.)
PT MAPFRE ABDA ASSISTANCE	Plaza Kelapa Gading (Ruko Inkopal)	B = MAPFRE ASISTENCIA, S.A.	51.0000	51.0000	(A)	(1)
	Blok A, nº 9 Jalan.	PT ASURANSI BINA DANA ARTA TBK	49.0000	49.0000
	Raya Boulevard Barat Kelapa Gading
PARAGUAY ASISTENCIA CIA. DE SERVICIOS S.A.	14240 Jakarta Utara (Indonesia) Av.Mariscal López, 930	MAPFRE ASISTENCIA, S.A.	98.9500	98.9500	(A)	(1)
	Asunción (Paraguay)	BEROASISTENCIA S.A.	1.0500	1.0500
REINSURANCE
MAPFRE RE COMPANIA DE REASEGUROS, S.A.	Paseo de Recoletos, 25	MAPFRE, S.A.	93.7719	92.2454	(A)	(1)
	Madrid (Spain)	MAPFRE ESPANA, S.A.	0.0003	0.0003
CIAR INVESTMENT	45, Rue de Trèves	MAPFRE RE, S.A.		99.9900	(H)	(1-1)
Salida en 2019 por venta)	Brussels (Belgium)	· MAPFRE INTERNACIONAL, S.A.		0.0100
MAPFRE CHILE REASEGUROS, S.A.	Avda.Apoquindo, 4499	MAPFRE RE, S.A.	000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000	100.0000	(A)	(1)
CAJA REASEGURADORA DE CHILE S.A.	Santiago de Chile (Chile) Avda.Apoquindo, 4499	MAPFRE CHILE REASEGUROS S.A.	99.8467	99.8467	(A)	(1)
	Santiago de Chile (Chile)
INMOBILIARIA COSTA DE MONTEMAR, S.A.	Avda.Apoquindo, 4499	MAPFRE CHILE REASEGUROS S.A.		31.4400	(H)	(H)
Salída en 2019 por liquidación)	Santiago de Chile (Chile)
C R ARGENTINA, S.A.	Bouchard 547 piso 14	MAPFRE CHILE REASEGUROS S.A.	99.9960	99.9960	(A)	(1)
	Buenos Aires (Argentina)
MAPFRE RE DO BRASIL COMPAÑÍA DE REASEGUROS	Rua Olimpiadas, 242,5° andar	MAPFRE RE, S.A.	તેવા જિલ્લેત જિલ્લામાં આવેલું એક ગામના લોકોનો મુખ્ય વ્યવસાય ખેતી, ખેતમજૂરી તેમ જ પશુપાલન છે. આ ગામમાં પ્રાથમિક શાળા, પંચાયતઘર, આંગણવાડી તેમ જ દૂધની ડેરી જેવી સવલતો પ્રાપ્ય 0.0001	વેવી જેવી જેવી ત 0.0001	(A)	(1)
	conjunto 52 Vila Olimpia; São Paulo (Brazil)	MAPFRE ASSISTENCIA LTDA
	Rua Olimpiadas, 242,5° andar	MAPFRE RE, S.A.	000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000	30.9000	(B)	(છ)
MAPFRE RE ESCRITORIO DE REPRESENTACION COMPAÑÍA DE REASEGUROS	conjunto 52 Vila Olimpia;	MAPFRE RE DO BRASIL	0.0001	0.0001
	São Paulo (Brazil)
NMOBILIARIA PRESIDENTE FIGUEROA ALCORTA,	Bouchard 547 piso 14	MAPFRE RE, S.A.	00.00885	09.9985	(B)	(9)
	B. Aires (Argentina)		95.0000	95.0000	(B)	(8)
MAPFRE MANDATOS Y SERVICIOS, S.A.	Bouchard 547 piso 14 B. Aires (Argentina)	MAPFRE RE, S.A. MAPFRE ARGENTINA HOLDING	5.0000	5.0000
REINSURANCE MANAGAMENT INC.	100 Campus Drive	MAPFRE RE, S.A.	100.0000	100.0000	(A)	(1)
	07932 New Jersey
	(U.S.A.)
MAPFRE EURO BONDS FUND	Ctra. Pozuelo, 50.	MAPFRE RE, S.A.	100.0000	100.0000	(A)	(1)
	Majadahonda. Madrid. (Spain)		100.0000	100.0000		(F)(1)
MAPFRE RE VERMONT CORPORATION	122 Cherry Tree Hill Road 05651 East Montpelier	MAPFRE RE, S.A.			(F)(A)
	Vermont (U.S.A.)
RISK MED SOLUTIONS, S.L.	Paseo de Recoletos, 25	MAPFRE RE, S.A.	100.0000		(G)(A)	(G)(1)
	Madrid (Spain)
OTHER
MAPFRE INTERNACIONAL S.A.	Ctra. Pozuelo, 52. Majadahonda.	MAPFRE, S.A.	100.0000	100.0000	(A)	(1)
	Madrid (Spain)
MAQUAVIT INMUEBLES, S.L.	Ctra. Pozuelo, 52. Majadahonda.	@ MAPFRE, S.A.	100.0000	100.0000	(A)	(1)
PROVITAE CENTROS ASISTENCIALES S.L.	Madrid (Spain) C/ Fuencarral, 123	MAQUAVIT INMUEBLES, S.L.	50.0000	50.0000	(C)	(3)
	Madrid (Spain)
BIOINGIENERIA ARAGONESA, S.L.	C/ Monasterio de las Huelgas, nº 2	MAQUAVIT INMUEBLES, S.L.		100.0000	(ન)	(H)
(Salida en 2019 por disolución)	Nave 6 P.I. Alcalde Caballero
	50014 Zaragoza (Spain)
FANCY INVESTMENT S.A.	Avda. 18 de Julio, 841	m MAPFRE, S.A.	100.0000	100.0000	(A)	(1)
PREMINEN PRICE COMPARISON HOLDINGS LIMITED Ty Admiral, David Street,	Montevideo (Uruguay)	@ MAPFRE, S.A.	50.0000	50.0000	(日)	(8)
	Cardiff, CF10 2EH (United Kingdom)
MAPFRE AM INVESTMENT HOLDING, S.A.	Ctra. Pozuelo, 52. Majadahonda.	MAPFRE, S.A.	100.0000	100.0000	(A)	(1)
	Madrid (Spain)
LA FINANCIERE RESPONSABLE	52, rue de Ponthieu	MAPFRE AM INVESTMENT HOLDINGS,	24.9500	24.9500	(C)	(4)
	75008 Paris (France)	S.A.

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		Participation in Capital				Integration
			Percentage		Consolidation	method for
Name	Address	Holder	2019	2018	method	Solvency
STABLE INCOME REAL STATE FUN GP S.A.R.I.	15, rue Bender L-1229 (Luxembourg)	MAPFRE AM INVESTMENT HOLDINGS, SA	100.0000	100.0000	(F)(A)	(F)(1)
MAPFRE GLOBAL RISK AGENCIA DE SUSCRIPCION	Ctra. Pozuelo, 52. Majadahonda. Madrid (Spain)	MAPFRE, S.A.	100.0000	100.0000	(F)(A)	(F)(1)
MAPFRE PARTICIPACIONES, S.A. (En 2018 SERVIFINANZAS, S.A. SOCIEDAD UNIPERSONAL)	Ctra. Pozuelo, 52. Majadahonda. Madrid (Spain)	MAPFRE, S.A.	100.0000	100.0000	(A)	(1)
MAPFRE GLOBAL RISKS (Salida en 2019 por Escisión - Nota 6.25	Ctra. Pozuelo, 52. Majadahonda. Madrid (Spain)	MAPFRE, S.A.		100.0000	(H)	(H)
INDUSTRIAL RE S.A.	23, Avenue Monterey L-2163 (Luxembourg)	· MAPFRE PARTICIPACIONES S.A. MAPFRE GI OBAL RISKS S.A.	100.0000	100 0000	Al	(1)
SOLUNION SEGUROS DE CREDITO S.A.	Avda.General Perón,40 Madrid (Spain)	MAPFRE PARTICIPACIONES S.A. MAPFRE GLOBAL RISKS S.A.	50.0000	50.0000	(亡)	(3

CONSOLIDATION METHOD OR PROCEDURE
(A) Subsidiaries consolidated by global integration
(B) Subsidiaries excluded from consolidation
(C) Aquity-accounted associated and investee companies
(D) Associated and investee companies excluded from consolidation
(E) Joint ventures consolidated using the equity method
(F) Companies added to the scope of consolidation in 2018 (G) Companies added to the scope of consolidation in 2019
(H) Companies removed from the scope of consolidation in 2018
INTEGRATION METHOD FOR SOLVENCY CALCULATION
(1) Full consolidation
(3) Adjusted equity-accounting
(4) Sectorial standards (7) Local standards
(1) Exclusion from the scope of group supervision, pursuant to article 214 of Directive 2009/138/EC

(*) MAPFRE holds the majority voting rights in the Annual General Shareholders' Meeting

				Year-end figures (thousand euros)
Name	Effective tax rate	Activity	Assets	Equity	Revenue	Result for the year
IBERIA MAPFRE ESPAÑA COMPAÑIA DE SEGUROS Y REASEGUROS S.A.	25% (1)(2)	Insurance and reinsurance	9,560,060	2,486,604	5,412,307	244,240
VERTI ASEGURADORA, COMPAÑÍA DE SEGUROS Y REASEGUROS, S.A	25% (1)(2)	Insurance and reinsurance	177,721	72,190	86,674	(1,638)
FUNESPAÑA, S.A.	25% (1)	Burial services	108,041	71,533	2,148	2,859
MAPFRE VIDEO Y COMUNICACIÓN S.A.	25% (1)	Asset Management	94,553	73,854	8,967	1,340
PUY DU FOU ESPAÑA,S.A.	25%	Theme park and related activities	72,187	72,187
MAPFRE INMUEBLES, S.G.A.	25% (1)	Real Estate	650,389	501,370	25,034	5,440
MAPFRE TECH, S.A.	25% (1)(2)	11	73,125	18,082	193,136	(2,552)
MAPFRE SEGUROS GERAIS S.A.	25%	Insurance and reinsurance	259,500	95,460	104,321	5,550
MAPFRE PORTUGAL SEGUROS DE VIDA S.A.	25.00%	Insurance	341,673	48,562	53,775	3,555
MAPFRE VIDA SOCIEDAD ANÓNIMA DE SEGUROS Y REASEGUROS SOBRE LA VIDA HUMANA	25% (1)(2)	Insurance and reinsurance	16,216,965	1,414,266	2,808,896	224,478
MAPFRE INVERSION SOCIEDAD DE VALORES S.A.	25% (1)(2)	Investment company	222,289	169,822	83,387	37,235
BANKIA MAPFRE VIDA, S.A. DE SEGUROS Y REASEGUROS	25% (1)(2)	Insurance and reinsurance	7,667,170	334,045	784,267	96,797
BANKINTER SEGUROS DE VIDA, S.A.	25%(2)	Insurance	2,110,801	169,666	486,004	60,767
CAJA CASTILLA LA MANCHA VIDA Y PENSIONES, S.A.	25%(2)	Insurance	932,344	74,406	105,527	17,341
CAJA GRANADA VIDA	25%(2)	Insurance	231,868	40,191	23,386	2,882
CAJAMÚRCIA VIDA	25%(2)	Insurance	130,616	24,936	24,011	4,174
BRAZIL
MAPFRE SEGUROS GERAIS S.A.	45.00%	Insurance	2,797,356	533,049	1,698,021	20,054
MAPFRE VIDA S.A.	45.00%	Insurance	280,010	99,374	214,827	14,240
MAPFRE PREVIDENCIA S.A.	45.00%	Insurance	739,961	18,326	175,216	(3,625)
ALIANÇA DO BRASIL SEGUROS, S.A.	45.00%	Insurance	191,031	42,234	137,562	12,938
BRASILSEG COMPANHIA DE SEGUROS S.A.	45.00%	Insurance	3,024,177	278,542	2,035,614	314,213
LATAM NORTh MAPFRE SEGUROS HONDURAS S.A.	30.00%	Insurance	104,809	27,427	82,841	6,263

MAPFRE PANAMA S.A.	25.00%	Insurance	338,320	91,409	234,025	7,839
MAPFRE SEGUROS EL SALVADOR, S.A.	25.00%	Insurance	82,936	24,220	75,069	3,968
MAPFRE SEGUROS GUATEMALA S.A.	25.00%	Insurance	72,635	23,574	78,155	6,311
MAPFRE BHD COMPAÑIA DE SEGUROS, S.A.	27.00%	Insurance	223,997	66,703	163,625	23,181
MAPFRE MEXICO S.A.	30.00%	Insurance	2,082,345	209,703	1,383,448	23,940
LATAM SOUTH
MAPFRE ARGENTINA SEGUROS S.A.	35.00%	Insurance	219,035	36,887	244,401	3,753
MAPFRE COMPAÑIA DE SEGUROS GENERALES DE CHILE S.A.	27.00%	Insurance	624,771	67,744	274,578	3,729
MAPFRE SEGUROS GENERALES DE COLOMBIA S.A.	33.00%	Insurance	1,717,025	132,210	303,678	14,411
MAPFRE COLOMBIA VIDA SEGUROS S.A.	33.00%	Insurance	936,634	35,258	175,251	(10,758)
MAPFRE PARAGUAY COMPAÑÍA DE SEGUROS S.A.	10.00%	Insurance	97,242	41,471	78,423	7,731
MAPFRE PERÚ COMPAÑÍA DE SEGURÓS Y REASEGURÓS	30.00%	Insurance and reinsurance	650,633	114,603	345,960	16,586

MAPFRE PERÚ VIDA, COMPAÑIA DE SEGUROS, S.A.	30.00%	Insurance	487,537	95,035	228,271	18,127

			Year-end figures (thousand euros)
Name NORTH AMERICA	Effective tax rate	Activity	Assets	Equity	Revenue	Result for the year
MAPFRE INSURANCE COMPANY OF FLORIDA	21.00%	Insurance	92,821	33,003	53,310	ર્વનગર
THE COMMERCE INSURANCE COMPANY	21.00%	Insurance	2,570,552	765,563	1,579,385	36,168
THE CITATION INSURANCE COMPANY	21.00%	Insurance	206,450	71,866	125,082	872
AMERICAN COMMERCE INSURANCE COMPANY	21.00%	Insurance	311,750	121,523	163,312	3,751
MAPFRE TECH USA CORPORATION	21.00%	IT	76,204	61,564	6,849	(6,399)
THE COMMERCE WEST INSURANCE COMPANY	21.00%	Insurance	167,725	61,077	102,117	5,703
MAPFRE PRAICO INSURANCE COMPANY	20.00%	Insurance	980,791	173,573	312,716	13,390
EURASIA
VERTI VERSICHERUNG AG	20.00%	Insurance	632,790	169,646	355,989	9,637
VERTI ASSICURIZIONI S.P.A.	27.50%	Insurance	1,488,154	323,824	499,567	2,139
MAPFRE MIDDLESEA P.L.C.	35.00%	Insurance	131,765	28,935	93,675	20,698
MAPFRE M.S.V. LIFE P.L.C.	35.00%	Insurance	2,497,078	147,337	568.795	11,773
MAPFRE SIGORTA, A.S.	22.00%	Insurance	721,638	120,261	507.126	7,166
MAPFRE INSULAR INSURANCE CORPORATION	30.00%	Insurance	83,961	27,107	30,085	{1,011}
PT ASURANSI BINA DANA ARTA TBK	25.00%	Insurance	163,412	78,212	60,442	5,304
ASSISTANCE
MAPFRE ASISTENCIA COMPAÑÍA INTERNACIONAL DE SEGUROS Y REASEGUROS, S.A.	25% (1)(2)	Insurance and reinsurance	812,122	177,538	497,764	(112,771)
CENTURY AUTOMOTIVE SERVICES COMPANY	21.00%	Special risks	301,340	13,605	159,429	672
REINSURANCE
MAPFRE RE COMPAÑIA DE REASEGUROS, S.A.	25% (1)(2)	Reinsurance	8,467,376	1,696,414	6,829,683	52,352
CAJA REASEGURADORA DE CHILE S.A.	27.00%	Reinsurance	106,890	13,083	10,502	(377)
MAPFRE RE DO BRASIL COMPAÑÍA DE REASEGUROS S.A.	45.00%	Insurance and reinsurance	212,461	41,930	83,178	2,632
MAPFRE RE VERMONT CORPORATION	21.00%	Insurance and reinsurance	336,322	53,390	400,837	3,400
OTHER
SOLUNION SEGURÓS DE CREDITO S.A.	25.00%	Insurance and reinsurance	381,382	111,080	205,549	4,516

TAX GROUP
(1) Company belonging to Tax Group 9/85
(2) Company belonging to VAT Group 87/10

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CONSOLIDATED MANAGEMENT REPORT

MAPFRE S.A.

FISCAL YEAR 2019

133

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall previl.

copia electrónica Código seguro de verificación (CSV): xIvfjCSHJswnKZUFv5fe Solas objavir de vintedori (DV) kinder on to CNW, segin el ariculo 7 od el el cy 3021 de Ley 392015, de 24 octubre. Su
auteniciado puede se contrastada través de la siguint The content of this Consolidated Management Report (hereinafter "the Report") was prepared in accordance with the recommendations set out in the "Guide for the preparation of management reports by listed companies" published by the Spanish National Securities and Exchange Commission (the CNMV).

The Alternative Performance Measures (APMs) used in the report, which refer to financial measures not defined or specified in the applicable financial reporting framework, along with their definition and method of calculation, can be found on our website at the following address: https://www.mapfre.com/corporate/institutionalinvestors/financial-information/

Some of the figures included in this Report have been rounded. Therefore, discrepancies may occur in the tables between the totals and the amounts listed due to this rounding.

ORGANIZATION OVERVIEW

BUSINESS MODEL

The vision of MAPFRE is to be THE MOST TRUSTED GLOBAL INSURANCE COMPANY, a concept that refers not only to its geographic presence but also to the wide range of insurance and reinsurance products and services that it promotes worldwide. It aims to become a leader in the markets in which it operates, through its proprietary and differentiated business model, based on transformation and innovation, designed to achieve profitable growth with a clear and decisive focus on the client, both private and corporate, a multi-channel approach and a firm vocation for service.

The influx of new insurance business models - insurtech - based on digital tools is causing a veritable revolution in the sector, and MAPFRE is ready to act swiftly in order to offer all its stakeholders value experiences. The business model that MAPFRE has adopted is not focused solely on financial results, but also on the social sphere.

Accordingly, MAPFRE:

" Is firmly committed to growth, both in terms of business volume and geographic development, generating adequate and sufficient profitability from its activities.
* Manages its business in an efficient manner and constantly improves productivity, reducing structural costs on a continuing basis in order to enhance its competitiveness.
* Professionally manages the risks it assumes, ensuring sustainable growth and results.
Steers its development by diversifying its portfolio of insurance, reinsurance and service businesses as a means of boosting growth and minimizing risks.
Deploys a global management model with ample capacity for local implementation, ensuring an appropriate balance between corporate involvement and business development in each country.
Makes its resources available to the entire organization, thus harnessing the synergies derived from sharing talent, processes and tools.
" Promotes specialized management as a means of continuously optimizing results and enhancing service quality.

MAPFRE's stated mission is to be a multinational team that strives to constantly improve services and develop the best possible relationships with clients, distributors, providers, shareholders and society in general.

This commitment to continuous improvement is underpinned by the following values, which assist in executing the mission and achieving the company's vision:

Solvency: financial strength with sustainable results and full capacity to meet all obligations to stakeholders.
Integrity: ethical conduct as a core element in how everyone (senior executives, employees, agents and collaborators) behaves, with a socially responsible focus on all long-term activities and commitments.
Vocation for service: the constant quest for excellence in the pursuit of its activities and a continuous focus on building strong relationships with clients.
improvement, using technology to service the different businesses and their objectives.
Committed team: full engagement of employees, senior executives, agents and other collaborators with the MAPFRE project and continuous development of the team's skills and abilities.

ORGANIZATIONAL STRUCTURE AND GOOD GOVERNANCE

A) ORGANIZATIONAL STRUCTURE

MAPFRE is a multinational company chiefly devoted to insurance and reinsurance activities, and operates in 44 countries across five continents.

The Group's parent company is MAPFRE S.A., whose shares are listed on the Madrid and Barcelona Stock Exchanges. MAPFRE S.A. is also a component of the IBEX 35, IBEX Top Dividend, Stoxx Europe 600 Insurance, Euro Stoxx Insurance, MSCI Spain, FTSE All-World, FTSE Developed Europe, FTSE4Good, FTSE4Good IBEX, Dow Jones Sustainability World and Ethibel Sustainability Index- Excellence Europe indices.

MAPFRE S.A. is a subsidiary of CARTERA MAPFRE, S.L. a single-member company that is wholly controlled by Fundación MAPFRE.

(Spain and Portugal), Brazil, LATAM North (Mexico and the subregion comprising Central America and the Dominican Republic), LATAM South, North America and EURASIA (Europe, Middle East, Africa and Asia-Pacific).

The Insurance Business Unit is organized in line with the MAPFRE Regional Areas, which are the geographic units that plan, support and oversee the region.

The Reinsurance and Global Risks units are merged within MAPFRE RE.

The activities of the different Business Units are supplemented by those of the Corporate Areas (Internal Audit, Strategy and M&A, Finance and Resources, Investments, Business and Clients, Operations, People and Organization, External Relations and Communication, General Counsel and Legal Affairs, Business Support, and IT and Processes), which have jurisdiction over all MAPFRE companies worldwide in terms of the definition, development, implementation and monitoring of global, regional and local corporate policies.

The fact that the different MAPFRE companies belong to a business group implies, without prejudice to their legal autonomy, that they form an integral part of an organic structure that regulates their interrelations, the coordination of their activities, and the oversight of the controlled companies by the controlling companies and, in the final instance, by the parent company.

The MAPFRE S.A. Board of Directors is the senior management and supervisory body for the entire Group. It features a Steering Committee that acts within all of its powers, except those which cannot be ceded by law, bylaws or the regulations of the Board of Directors, and three delegate committees (Audit and Compliance, Appointments and Remuneration, and Risks).

The Executive Committee is the body that exercises direct supervision over management of the Business Units and coordinates the various Areas and Units in the Group. The Transformation and Innovation Committee reports to the Executive Committee and has decision-making powers in relation to all transformation and innovation initiatives within MAPFRE.

The Global Business Committee is also responsible for analyzing the development of MAPFRE's insurance business and services throughout the world, its compliance with approved plans, and for proposing measures to correct or improve them.

The management, coordination and supervision of the activities of the different Units and Areas are carried out, according to their respective remit, by the local, regional and business unit management committees as well as the Executive Committee.

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Each of the subsidiary companies has its own governing bodies, in which the structure and complexity depend on the importance of their activities and any legal provisions that may be applicable. They usually feature a Board of Directors and, depending on the importance of their activities, a Management Committee as well. In the case of shell or very small companies, these bodies are replaced by two administrators.

The Group's current organizational chart is as follows:

B) GOOD GOVERNANCE

MAPFRE has constantly and decidedly striven from the start to adopt the best corporate governance practices. MAPFRE's good governance practices are oriented toward creating sustained financial and social value over the long-term. The company's objective is to ensure financial stability and safeguard the interests of shareholders, while maximizing the positive impact on society as a whole.

MAPFRE is governed by the Recast Text of the Spanish Companies Act and has a series of Institutional, Business and Organizational Principles in place that have been 138

approved by the Board of Directors of MAPFRE S.A. which, together with its Bylaws and the Board of Directors' Regulations, define the structure, composition and functions of each of its governing bodies and make up the minimum mandatory compliance framework for all of the companies in the MAPFRE Group and their respective governing bodies. In addition, MAPFRE's governance system is supplemented by a group of corporate policies .

MAPFRE complies fully with 93.75 percent, and fully or partially with 98.44 percent, of the recommendations set out in the CNMV Good Governance Code for listed companies at December 31, 2019.

The 2019 Annual Corporate Governance Report offers a detailed explanation of the structure of MAPFRE's governance system and its operation in practice", providing the minimum content established by Article 540 of the Recast Text of the Spanish Companies Act.

OPERATIONAL FRAMEWORK

The Group's activities are carried out through its Business Units.

The Insurance Business Unit is organized in line with the structure of the Territorial and Regional Areas.

The IBERIA Territorial Area overlaps with the Iberia Regional Area, which is made up of Spain and Portugal. The LATAM Territorial Area is subdivided into the Regional Areas of Brazil, LATAM North (Costa Rica, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, Panama and the Dominican Republic), and LATAM South (Argentina, Colombia, Chile, Ecuador, Paraguay, Peru, Uruguay and Venezuela). The INTERNATIONAL Territorial Area comprises the Regional Areas of North America (Canada, United States and Puerto Rico) and EURASIA (which includes operations in Europe - except Spain and Portugal -, the Middle East, Africa, Australia, China, Philippines, Indonesia, Japan, Malaysia and Singapore).

The MAPFRE distribution network is the largest in the Spanish insurance industry and one of the largest belonging to a financial group in Latin America.

⁴ Institutional, Business and Organizational Principles of the MAPFRE Group and other corporate regulations are available on the Company's website (www.mapfre.com).

⁴ For further information, please consult the Annual Corporate Governance Report 2019, which forms an integral part of this Consolidated Management Report.

MAPFRE is committed to multichannel distribution and is adapting its sales structure to the legislation governing the countries in which it operates.

Some of the key features behind the success of its business model include its client focus, global product offering and adaptation to the legal and commercial nature of each market.

At the end of 2019, MAPFRE's global distribution network consisted of 13,024 offices.

The breakdown is shown below:

OFFICES	919	2018
IBERIA
Direct and Delegate	3,136	3,084
Bancassurance	2,519	2,329
Subtotal IBERIA	5,655	5,413
LATAM
Direct and Delegate	1,419	1,629
Bancassurance	5,354	4,941
Subtotal LATAM	6,773	6,570
INTERNATIONAL
Direct and Delegate	ਦੇ ਦੇ ਦੇ ਦੇ ਦੇ ਦੇ ਵੱਡ ਵਿੱਚ ਇੱਕ ਵਿੱਚ ਇੱਕ ਵਿੱਚ ਇੱਕ ਵਿੱਚ ਇੱਕ ਵਿੱਚ ਇੱਕ ਵਿੱਚ ਇੱਕ ਵਿੱਚ ਇੱਕ ਵਿੱਚ ਇੱਕ ਵਿੱਚ ਇੱਕ ਵਿੱਚ ਇੱਕ ਵਿੱਚ ਇੱਕ ਵਿੱਚ ਇੱਕ ਵਿੱਚ ਇੱਕ ਵਿੱਚ ਇੱਕ ਵਿੱਚ ਇੱਕ ਵਿੱਚ ਇੱਕ ਵਿੱਚ ਇੱ	543
Bancassurance	41
Subtotal INTERNATIONAL	596	543
TOTAL OFFICES	13,024	12,526

At fiscal year-end, MAPFRE's presence in Spain consisted of 3,030 offices, as well as Brazil, which has 647 offices, and Turkey, with 427 offices.

In 2019, more than 79,000 intermediaries, including agents, delegates and brokers, collaborated in the distribution of our products. The following table shows the breakdown of this group:

SALES NETWORK		2018
IBERIA
Agents	10,231	9.850
Delegates	2,791	2.753
Brokers	4,541	5.311
Subtotal IBERIA	17,563	17.914
LATAM
Agents	13,623	18.106
Delegates	3,824	3.952
Brokers	34,737	34.624
Subtotal LATAM	52,184	56.682
INTERNATIONAL
Agents	7,212	9.786
Delegates	198	121
Brokers	2,082	2.061
Subtotal INTERNATIONAL	9,492	11.968
TOTAL SALES NETWORK	79,239	86.564

MAPFRE's own distribution networks are supplemented by the distribution capabilities provided for under agreements with various companies, most notably with regard to bancassurance (Bankia, Bankinter, CCM, Banco do Brasil, Bhd Leon and Bank of Valleta, among others). MAPFRE distributed its products in 2019 through 7,914 bancassurance offices (2,519 in Spain, 5,140 in Brazil, 214 in the Dominican Republic and 41 in Malta).

Within the insurance business, MAPFRE is the largest Spanish insurer in the world, with 14.1 percent of the Non-Life insurance and 7.9 percent of the Life insurance markets in Spain. It is the 11th largest insurer in Europe and is present in nearly every country in Latin America, where it is the leading Non-Life insurance group, with a market share of 7.2 percent (according to the figures for 2018, the latest available). Furthermore, the Group's reinsurance business (MAPFRE RE) holds position 16 in the global reinsurance ranking , while in the Assistance sector, MAPFRE is the fourth largest company in the world by revenue.

³ Source: S&P Global Ratings

BUSINESS PERFORMANCE AND RESULTS

ECONOMIC CONTEXT AND DEVELOPMENT OF INSURANCE MARKETS

Economic context

General aspects

In 2019, the world economy experienced estimated modest growth of 3.0 percent. The G7 group of economies grew by 1.6 percent, with the United States at 2.3 percent and the eurozone at 1.2 percent. As for emerging economies, while they grew at a different level, they were not free of deceleration; China grew by 6.1 percent (compared to 6.6 percent in the previous year), the emerging and developing group dropped to 3.9 percent from 4.5 percent, and emerging Asiatic economies fell to 5.9 percent from 6.4 percent.

Several factors burdening manufacturing and investment contributed to this deceleration in activity: trade tensions between the United States and China; the prospect of increased tariffs on other US sales partners; the uncertainty over Brexit; and from a structural perspective, the point in the economic cycle in which the global economy found itself.

In this atmosphere of weakening economic activity and decline in inflation expectations, the majority of central banks worldwide changed their monetary policy, lowering interest rates at the pace that the drop in US Federal Reserve interest rates, low inflation and exchange rates against the dollar allowed them.

Without doubt, the drop in interest rates worldwide will have a mitigating effect on the slowdown, but it cannot be expected to provide the basis for a solid, strong recovery in and of itself. To achieve this, governments also need to implement fiscal policies, as monetary policy is losing its effectiveness and may be feeding asset bubbles.

Many uncertainties need to be dispelled for a rapid recovery to occur, which is unlikely; therefore, the central scenario in the outlook for the next two years is slower growth.

Regarding the economy of the United States, markets are concerned over the possibility of a recession, but the strength of the labor market and the service sector would not indicate that this is imminent

In the case of China, its economy grew by 6.1 percent, manifesting a certain resilience in the global context. A successful package of measures (lowering taxes and encouraging private sector borrowing) was implemented to stimulate internal demand and counteract deceleration in the export sector caused by the trade war. All the same, confirmation as to whether the minimum trade agreement between China and the United States announced in October will materialize is yet to be confirmed.

In Europe, 2019 was marked by elections in several countries, leadership renewals in the European Commission and the European Central Bank (ECB) and Brexit. With the European economy decelerating, the ECB lowered deposit rates to -0.50 percent in September, and resumed asset purchasing.

A more detailed analysis of the most important markets in which MAPFRE operates is presented below:

Eurozone

The eurozone is slowing down, with GDP growth at 1.2 percent. Inflation, for its part, has been falling for a year and moving further away from the 2 percent objective. The ECB, in light of the extent of the fall in deposit rates, announced the reactivation of the purchase program in the amount of 20 billion per month starting in November, with no defined end. Moreover, it reiterated that governments must also act with fiscal stimuli, reflecting that monetary stimuli are reaching the limits of their effectiveness.

The Euro Stoxx 50 index ended the year with a rally of 24.8 percent, to 3,745 points spurred on by corporate earnings and new monetary stimuli.

Spain

The Spanish economy grew by 2.0 percent in 2019, confirming the announced slowdown. The economy is expected to grow by 1.7 percent in 2020, meaning the slowdown will gain traction, albeit smoothly, in particular as the ECB's monetary stimulus and accommodative policies from the central banks begin to take effect.

However, year-on-year inflation for 2019 dropped to 0.8 percent, with fuel, food and non-alcoholic beverage prices showing stability compared to the declines posted in 2018.

The unemployment rate fell to 13.8 percent, but the pace of job creation, an aspect that shapes consumption growth, is slowing.

The IBEX 35 Index was up 11.8 percent for the year, closing at 9,549 points.

United States

The average growth forecast for 2019 is 2.2 percent, dropping from the 2.9 percent recorded in the previous year. Leading indicators confirm the slowdown and how this translates into confidence with economic agents.

Inflation rebounded slightly in November to 2.1 percent, with the closing estimate at 1.8 percent. The Federal Reserve decided to lower interest rates three times to the range of 1.50-1.75 percent, and announced that it will continue to inject liquidity into the interbank market.

The dollar closed the year at 1.12 USD/EUR (an increase of 2.2 percent), partly due to the persistent growth and interest rate differential between the United States and the eurozone.

The S&P 500 index showed an increase of 29 percent and ended the year at 3,231 points, spurred on by the drop in interest rates and the resumption of the expansion of the balance sheet of the Federal Reserve, in a stronger economic environment than that of Europe.

Brazil

In Brazil, the projected growth of the economy for 2019 is 0.8 percent. With fewer inflationary pressures (3.3 percent in 2019), and in line with the drop in interest rates worldwide, the Central Bank lowered interest rates on four occasions in 2019, from 6.50 percent to 4.50 percent.

Following the approval of the social security reform, the Brazilian real recovered to a level close to 4.0 BRL/USD, where it finished out the year.

In the stock market, the BOVESPA Index ended the year at 115,645 points, an increase of 31.6 percent for the year.

Mexico

In Mexico, the economy is stagnating and GDP growth in 2019 is estimated to be close to zero.

Inflation, for its part, is estimated to reach 3.2 percent in 2019. Taking advantage of the lack of inflationary pressures, the Bank of Mexico, along with many central banks worldwide, lowered its interest rates four times in 2019, from 8.25 percent to 7.25 percent.

The exchange rate has ended the year at 18.93 MXN/USD. The Mexican Stock Exchange rose by 4.6 percent in the year, ending at 43,541 points.

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Turkey

Turkey's economy strung together three quarters of contraction until the second quarter of 2019. It grew 0.9 percent in the third quarter and a growth of 0.2 percent is expected for the year's average.

Inflation in 2019 stood at 10.5 percent, falling from last year's highs of 25.2 percent, enabling the Central Bank to reduce interest rates aggressively, from 24 percent in June to 12 percent by year-end.

2019 saw a slight recovery in the Turkish economy, assisted by the low interest rate environment, both locally and in the United States.

The exchange rate appeared to have found stability in the range 5.60-5.80 TRY/USD, although at year-end it reached 6.0 TRY/USD.

The Istanbul BIST30 Index dropped by 21.4 percent for the year to 138,830 (10.1 percent in euro terms).

Development of Insurance Markets

Spanish market4

Written premiums in the Spanish insurance market reached 64.16 billion euros to December 2019, a figure quite close to that for last year, with a slight increase of 0.4 percent. While the Life line showed negative performance (-5.1 percent), Non-Life lines grew 3.4 percent.

Item	Dec-19	Dec 1:
Life	27,526	28,995	-5.1%
Non-Life	36,629	35,430	3.4%
TOTAL Direct Insurance	64.155	64,425	-0.4%

Figures in million euros

Health and Multirisk insurance continued to drive Non-Life business, with increases of 4.8 percent and 4.0 percent respectively, while automobile insurance continued to show moderate increases (1.5 percent). Within the larger volume lines, the increases in Burial (3.9 percent) and Third-party responsibility (4.25 percent) should also be noted. Another line that showed solid performance in 2019 was Transport, with an increase of 8.º3 percent in premium income and positive variations in all lines.

⁴ Source: ICEA.

Item	Dec 19	Dec-18	16 Var
Automobile	11,307	11,138	1.5%
Health	8,923	8,516	4.8%
Multirisk	7,521	7,234	4.0%
Other Non-Life lines	8,879	8,542	3.9%
TOTAL NON-LIFE	36,630	35,430	3.4%

Figures in million euros

As far as Life insurance premiums go, Life Protection volume by rose 3.0 percent, well down on the 12.1 percent recorded in 2018. Savings insurance continued to perform poorly in this period, with a 6.6 percent decrease in premiums to December 2019.

September 2019 data showed that the technical profitability of the Non-Life lines improved by 0.6 percentage points (pp) compared to the same period for the previous year, due to a drop in the loss ratio of 1 pp and an increase in the expense ratio of 0.3 pp. Multirisk insurance in particular contributed to this improvement, with a 5 pp improvement in its combined ratio in the period.

	TOTAL NON-LIFE AUTOMOBILE			HEALTHE
		Sept-19 Sept-18 Sept-18 Sept-18 Sept-18 Sept-18 Sept-18
Loss ratio	70.1%		71.1% 75.8% 75.9% 60.7% 60.7% 79.5%	79.4%
Expense ratio	22.1%		21.8% 18.9% 18.5% 31.2% 31.2% 12.5%	12.0%
Combined ratio	92.3%		92.9% 94.7% 94.4% 91.9% 96.9% 92.0%	91.4%

Although Life premium growth was negative over the last two years, technical provisions have continued to increase, reaching 19.47 billion euros by the end of 2019, 3.3 percent greater than for the previous year. Mutual fund assets in turn grew by 7.4 percent in 2019, reaching 27.66 billion euros, due principally to the returns generated by fund portfolios. According to Inverco, the favorable performance of the stock markets allowed the variable income fund portfolios to deliver considerable growth. Finally, the volume of assets managed by pension plans amounted to 11.64 billion euros in December 2019, which represents an increase of 8.9 percent compared to 2018. The pension plans finished 2019 with the best profitability of the historical series at year-end, with an average of 8.8% for the year.

Item	Dec-19	Dec-18	% Var. 19/18
Life insurance	194,685	188,467	3.3%
Mutual funds	276,557	257,551	7.4%
Pension funds	116,419	106,886	8.9%
TOTAL	587,661	552,904	6.3%

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Latin American markets

The latest data published by the Latin American supervisors referring to 2019 (latest official information available) shows that all countries in the region increased premium volume in nominal terms, with the exception of Nicaragua. Again with the exception of Nicaragua, all the markets saw increases in Non-Life lines over the previous 12 months, many of which were double digit, such as in Argentina, Colombia and Mexico. As for the Life business lines, Paraguay saw decreases, while the rest of the countries showed very positive performances, most notably the 17.9 percent increase registered in Brazil, the largest market in the region in this segment.

COUNTRY	DATE	NON-LIFE	13 33	TOTAL
Argentina	Sept-19	35.1%	26.2%	33.9%
Brazil	Nov-19	2.3%	17.9%	11.9%
Chile	Sept-19	8.7%	2.6%	11.5%
Colombia	Oct-19	12.3%	9.0%	11.2%
Mexico	Sept-19	11.6%	12.0%	11.9%
Peru	Nov-19	7.4%	12.4%	9.6%
Puerto Rico	Dec-18	8.2%	17.7%	9.1%

Source: MAPFRE Economic Research, using data from the supervisors in each country.

Brazil and Mexico, the two largest markets in the region, recorded positive variations in premium volume over the course of 2019. Brazil recovered from the decrease in 2018 due to the drop in Life premiums, while the Non-Life lines showed some moderation in their performance, with a variation of 2.3 percent to November (5.4 percent for November 2018), with a drop in Automobile (-6.2 percent). Rates for compulsory personal damage insurance caused by land motor vehicles dropped significantly for 2019, after the release of a new resolution by the National Council of Private Insurers with new rates for the year. Furthermore, in November 2019 the country's supervisory body, SUSEP, announced the submission of Provisional Measure No. 904/19, which terminates this insurance, commencing January 1, 2020 because it is not deemed to have been effective. Subsequently, the Supreme Court suspended the effectiveness of said Provisional Measure.

In addition, SUSEP also ceased to regulate the insurance broker profession under its Provisional Measure No. 905/19, issued by the President of the Republic, as published

147

in the Official Gazette of the Union on November 12. This measure was justified by the fact that brokers are prepared to operate in a more flexible environment without the presence of the regulator, and self-regulation will result in more efficiency and freedom in the insurance industry.

Mexico delivered double-digit growth in both Life (12 percent) and Non-Life (11.6 percent) premiums, the latter being affected by the renewal of the comprehensive insurance policy for Petróleos Mexicanos (PEMEX) in June 2019, which covers a 24month period.

Other markets

United States

Based on data from the National Association of Insurance Commissioners (NAIC) for the first six months of 2019, direct Property & Casualty insurance premiums experienced an increase of 4.3 percent compared to the same period last year, with positive performance across all business lines (personal, commercial and combined lines). Rates continued to strengthen in 2019 due to two years of severe losses and a low interest-rate environment. Life insurance in turn showed an increase of 5 percent, with good performance in annuities, which grew by 10 percent. Finally, Health insurance also performed well, increasing 5.8 percent in the first six months of 2019 due mainly to public protection programs, Medicare and Medicaid.

Turkey

Based on data from the Turkish Insurance Association, the Turkish insurance market closed the third quarter of 2019 with a nominal increase of 21.8 percent, although it should be borne in mind that year-on-year inflation was 13.5 percent in September 2019. Life insurance premiums experienced an extraordinary increase of 35.6 percent, with significant stimulus for loan-related Life insurance. As for the Non-Life segment, it increased 19.3 percent, with significant increases in all major lines. Automobile insurance, with the largest volume, recorded growth of 17.3 percent, and the Health, Homeowners and Commercial lines also performed well, with increases of 34.3 percent and 22.4 percent respectively. Finally, it should be noted that Presidential Decree no. 47 was published in October 2019 in the country's Official Bulletin, creating an independent institution responsible for regulating the insurance industry, the Pension and Private Insurance Supervision and Regulation Agency. Supervision of the insurance industry previously came under the Ministry of the Treasury and Finance.

The English version is a translation of the original in Spanish for information purposes only. In esse of discrepancy, the Spanish version shall prevail.

BUSINESS PERFORMANCE

Revenues on operations

ITEM	DECEMBER 2019	DECEMBER 2018	A%
Total written and accepted premiums	23,043.9	22,537.1	2.2%
Investments financial income	3,287.5	2,575.2	27.7%
Revenue from non-insurance companies and other revenue	2,140.8	1,477.5	44.9%
Total consolidated revenue	28,472.2	26,589.7	7.1%

Figures in million euros

The consolidated revenues of the Group reached 28.47 billion euros, up 7.1 percent, mainly due to the increase in premium issuing and higher financial income.

Accepted direct insurance and reinsurance premiums, which represent the vast majority of business volume, amounted to 23,0 billion euros, with an increase of 2.2 percent.

Gross investment income amounted to just under 3.30 billion euros, 27.7% higher than the same period last year.

Other income, which primarily includes non-insurance activities and non-technical income, was up 44.9 percent, mainly due to an increase in positive currency conversion differences.

Earnings

The chart below gives a summary of the consolidated income statement as on December 2019, showing the various elements of MAPFRE's earnings and the comparison with the same period of the previous year.

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevall.

149

CNMV Oficina: ROD MADRID Registro de Entrada Nº: 2020018771 Fecha de registro: 2020-02-12 01:18:30

ITEM	DECEMBER 2019	DECEMBER 2018	A %
INSURANCE BUSINESS REVENUE	24,154.8	22,833.4	5.8%
Premiums earned, net	19,172.9	19,212.0
Investment income	3,235.4	2,490.3
Positive currency conversion differences	1,589.2	959.4
Other income	157.3	171.7
INSURANCE BUSINESS EXPENSES	(22,621.1)	(21,413.4)	-5.6%
Incurred claims for the period, net	(14,699.5)	(14,010.0)
Net operating expenses	(5,108.3)	(4,988.7)
Investment expenses	(847.5)	(949.9)
Negative currency conversion differences	(1,589.5)	(946.7)
Other expenses	(376.3)	(518.1)
INSURANCE BUSINESS RESULT	1,533.7	1,420.0	8.0%
OTHER ACTIVITIES	(232.9)	(70.7)
RESULT ON RESTATEMENT OF FINANCIAL ACCOUNTS	(21.6)	(18.7)
RESULT	1,279.2	1,330.5	-3.9%
TAX ON PROFITS	(323.9)	(453.0)
RESULT AFTER TAX	955.3	877.5	8.9%
RESULT AFTER TAX FROM DISCONTINUED OPERATIONS	0.0	0.0
RESULT FOR THE PERIOD	955.3	877.5	8.9%
Attributable to non-controlling interests	346.0	348.7
Attributable to the controlling Company	609.2	528.9	15.2%

Figures in million euros

The increase shown under the heading of Investment income is mainly due to the revaluations of investment portfolios. These investments are linked to Life Savings policies, and so the increase in income is reflected in an increase in expenses, as shown in claims for the period.

The increase in the positive currency conversion differences heading is reflected symmetrically in the negative currency conversion differences heading.

The result of the insurance business is 1.53 billion euros, 8.0 percent higher than the previous year.

The result deriving from other non-insurance activities equates to a loss of 233 million euros and the result before tax stands at 1.28 billion euros, 3.9 percent less than the last financial year.

Tax on profits reached 323.9 million euros, 28.5 percent down on the previous year. The lower tax expense stems principally from Brazil and companies registered in Spain. The attributable profit accrued as of December 2019 amounted to 609.2 million euros, an increase of 15.2 percent. It must be taken into account that the year 2018 is affected by the extraordinary deterioration of goodwill amounting to 173.5 million euros, (recorded in the Non-Life result), while, in fiscal 2019, the extraordinary deterioration of goodwill and the provision for restructuring expenses in MAPFRE ASISTENCIA investee companies, which have had an overall impact of 75.6 million euros on the Group's attributable result, (recorded in the result for Other activities).

Non-Life

Non-Life results reached 919.6 million euros, up 24.5% on the previous year.

MAPFRE ESPAÑA continues to be the largest contributor to Group earnings, maintaining its leadership position in the Spanish market.

The positive rate of contribution to the earnings of the Non-Life business in BRAZIL, LATAM NORTH and NORTH AMERICA is also noteworthy, while EURASIA presented positive Non-Life business results in excess of those recorded last year.

MAPFRE RE's result deteriorated due to the adverse evolution of the non-catastrophic loss experience, with several incidents of relevant intensity during the year, such as the damages resulting from the drought in Brazil, the extraordinary damages caused by typhoons Faxai and Hagibis and the riots in the fourth quarter in Chile.

Life

The Life result amounted to 614.1 million euros, a decrease of 9.9 positive over the previous year. On the positive side, the solid evolution of the business of Spain should be highlighted, where the results show sustained growth. Brazil showed a deterioration, due to, on the one hand, the fact that in 2018 there was an extraordinary positive effect of 130.0 million euros as a result of the reduction in

151

technical provisions in the Life business in order to adapt them to more accurate actuarial estimations In addition, the Life Protection business in Brazil was affected by the increase in acquisition costs in the bancassurance channel.

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall previll.

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Other activities

The increase in the loss of the result of Other Activities has its origin in MAPFRE ASISTENCIA, coming on the back of the extraordinary provision of 75.6 million euros already mentioned, as well as expenses related to innovation, digitalization and other strategic initiatives developed by the most relevant units.

Balance sheet

ITEM	DECEMBER 2019	DECEMBER 2018	A %
Goodwill	1,773.2	1,689.0	5.0%
Other intangible assets	1,526.9	1,383.3	10.4%
Other fixed assets	265.5	259.7	2.2%
Cash	2,537.5	2,201.4	15.3%
Real estate	2,435.0	2,096.2	16.2%
Financial investments	44,995.9	41,246.0	9.1%
Other investments	1,044.1	1,487.4	-29.8%
Unit-Linked investments	2,510.2	2,242.5	11.9%
Participation of reinsurance in technical provisions	6,386.1	5,883.2	8.5%
Receivables on insurance and reinsurance operations	4,879.4	4,547.3	7.3%
Deferred taxes	307.0	333.6	-8.0%
Assets held for sale	264.2	341.5	-22.6%
Other assets	3,585.0	3,579.7	0.1%
TOTAL ASSETS	72,509.9	67,290.8	7.8%
Equity attributable to the Controlling company	8,850.3	7,993.8	10.8%
Non-controlling interests	1,251.7	1,203.8	4.0%
Equity	10,106.0	9,197.6	9.9%
Financial debt	2,973.7	2,670.3	11.4%
Technical provisions	51,031.6	48,723.6	4.7%
Provisions for risks and expenses	709.3	641.5	10.6%
Debt due on insurance and reinsurance operations	2,469.1	1,947.4	26.8%
Deferred taxes	703.1	499.3	40.8%
Liabilities held for sale	135.9	194.0	-29.9%
Other liabilities	4,381.2	3,417.1	28.2%
TOTAL LIABILITIES	72,509.9	67,290.8	7.8%

Figures in million euros

153

Assets reached 72.51 billion euros as on December 31, 2019, rising 7.8 percent compared to the end of the previous year. The most relevant fluctuations are analyzed below:

1. The increase in the financial year 2019 of the Financial Investments and Technical Provisions sections includes, in addition to own growth derived from insurance activity, the effect of the increase in the valuation of the financial investment portfolios due to the drop in interest rates and the improvement of stock markets. In addition, the inclusion of Caja Granada Vida and Cajamurcia Vida in the Group scope has led, as at December 2019, an increase in financial investments of 324.2 million euros and in technical provisions of 273.8 million euros. The increase in the valuation of the financial investment portfolio also has its accounting reflection in the equity and deferred taxes of the Group.
1. The increase in the Goodwill and Intangible Assets sections originates from the inclusion in the Group scope of Caja Granada Vida and Cajamurcia Vida Group, as well as the inclusion in the Group of the company acquired from Santander Bank which, as a whole, represent an increase of 210.5 million euros. This increase has been reduced by 65.6 million euros due to the extraordinary deterioration of the goodwill at MAPFRE ASISTENCIA subsidiaries.
1. The entry into force on January 1, 2019 of IFRS-EU 16 regulations on leases has led to an increase in the Assets/Real Estate heading amounting to 285 million euros and other liabilities amounting to 310 million euros. As of December 2019, the impact on the Group's result due to the application of this new standard translates into costs rising by 4.1 million euros.
1. As of December 31, 2019, the Assets held for Sale heading mainly includes the valuation of Funespaña's businesses in the amount of 127.9 million euros.
1. Variations in the Assets and Liabilities headings for insurance and reinsurance operations have come about as a result of the business management process itself.

Managed funds

The following charts show the performance of managed savings, including both technical provisions of Life insurance companies, and the Life provisions of multiline insurance companies, which are presented in the Group's consolidated balance sheet.

154

In addition to the Life insurance operations, MAPFRE manages its clients' savings through pension and mutual funds.

Managed savings

The following chart shows the details of and changes in managed savings, which includes both items:

ITEM	DECEMBER 2019	DECEMBER 2018	4%
Life technical provisions	30,547.8	28,536.5	7.0%
Pension funds	5,479.1	4,874.7	12.4%
Mutual funds and other	4,636.0	4.336.4	6.9%
Subtotal	40,663.0	37,747.6	7.7%

Figures in million euros

The variation in managed savings in relation to December of last year reflects the growth of Life technical provisions, of managed savings in pension funds and investment funds.

Assets under management

The following chart reflects the performance of assets under management, which includes the total Group investment portfolio as well as pension and mutual funds, and which shows growth of 8.8 percent:

lifem	DECEMBER 2019	DECEMBER 2018	A%
Investment portfolio	53,522.7	49,273.5	8.6%
Pension funds	5,479.1	4,874.7	12.4%
Mutual funds and other	4,636.0	4,336.4	6.9%
TOTAL	63,637.8	58,484.6	8.8%

Figures in million euros

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Return on shareholders' equity (ROE)

Return on equity (ROE), which represents the relationship between net profit attributable to the parent company (deducting the share of non-controlling interests) and average shareholders' equity, was 7.2 percent (6.4 percent in 2018).

Management ratios

The combined ratio measures the impact on premiums of management costs and the loss ratio for the period. In both 2019 and 2018, this ratio was 97.6 percent.

The following table shows how the main management ratios performed, by business unit:

	EXPENSE RATIO (1)			COMBINED RATIO (3)		LOSS RATIO'2)
	2019	2018	2019	2018	2019	2018
IBERIA	21.2%	21.0%	73.1%	72.8%	94.4%	93.8%
LATAM NORTH	31.2%	32.2%	63.5%	65.9%	94.7%	98.1%
LATAM SOUTH	36.8%	36.2%	63.2%	61.1%	100.0%	97.3%
BRAZIL	37.0%	37.0%	55.1%	61.5%	92.2%	98.5%
NORTH AMERICA	28.5%	28.1%	71.8%	74.0%	100.4%	102.1%
EURASIA	26.1%	22.2%	80.0%	84.4%	106.1%	106.7%
MAPFRE RE(4)	30.5%	27.8%	70.5%	67.8%	101.0%	95.6%
Reinsurance	30.0%	27.2%	69.3%	68.8%	99.2%	96.1%
Global Risks	37.5%	32.8%	86.0%	59.3%	123.5%	92.1%
MAPFRE ASISTENCIA	41.1%	41.1%	62.2%	62.4%	103.3%	103.5%
MAPFRE S.A.	28.6%	27.8%	69.0%	69,8%	97.6%	97.6%

(1) (Operating expenses, net of reinsurance - other technical revenues + other technical expenses) / Allocated premiums, net of reinsurance. Figures refer to Non-Life insurance.

(2) (Incurred claims for the period, net of reinsurance + variation in other technical provisions + profit sharing and returned premiums) / Allocated premiums, net of reinsurance. Figures refer to Non-Life insurance.

(3) Combined ratio = expense ratio + loss ratio. Figures refer to Non-Life insurance.

(4) For comparison purposes, the 2018 data includes Global Risks.

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Information by Business Unit

MAPFRE structures its business through the following Business Units: Insurance, Reinsurance, Global Risks and Assistance. The Reinsurance and Global Risks Units are integrated into MAPFRE RE.

The accompanying chart shows the premiums, attributable result, and Non-Life combined ratio for each Business Unit:

Key figures

		Premiums		Attributable result			Combined ratio
AREA/BUSINESS UNIT	DECEMBER 2019	DECEMBER 2018	A%	DECEMBER 2019	DECEMBER 2018	4%	DECEMBER 2019	DECEMBER 2018
IBERIA	7,717.8	7,657.9	0.8%	497.8	480.6	3.6%	94.4%	93.8%
LATAM	7,547.3	6,887.3	9.6%	214.9	156.9	36.9%	94.4%	98.2%
INTERNATIONAL	4,027.3	4,191.0	-3.9%	93.7	47.4	97.6%	102.3%	103.5%
TOTAL INSURANCE	19,292.4	18,736.2	3.0%	806.4	684.9	17.7%	96.5%	97.8%
REINSURANCE AND GLOBAL RISKS*	5,580.5	4,960.9	12.5%	57.5	168.7	-65.9%	101.0%	95.6%
ASISTENCIA	861.0	911.0	-5.5%	(88.0)	(10.1)		103.3%	103.5%
Holding, eliminations and other	(2,690.0)	(2,071.2)	-29.9%	(166.7)	(314.6)	47.0%
MAPFRE S.A.	23,043.9	22,537.1	2.2%	609.2	528.9	15.2%	97.6%	97.6%

Figures in million euros

* For comparison purposes, the 2018 data includes Global Risks.

Insurance companies

IBERIA

IBERIA encompasses the business activities of MAPFRE ESPAÑA and its subsidiary in Portugal, as well as the Life business managed by MAPFRE VIDA and its bancassurance subsidiaries.

Information by country

	Premiums			Attributable result			Combined ratio
REGION/COUNTRY	2019	DECEMBER DECEMBER 2018	A%	2019	DECEMBER DECEMBER 2018	4%	DECEMBER DECEMBER 2019	2018
IBERIA	7,717.8	7,657.9 0.8%		497.8		480.6 3.6%	94.4%	93.8%
SPAIN	7,582.3	7,524.0 0.8%		488.7	466.7	4.7%	94.4%	93.7%
PORTUGAL	135.4 I	133.9 1.1%		9.1		13.9 34.4%	95.9%	96.5%

Figures in million euros

IBERIA premiums grew by 0.8 percent. Non-Life business premiums rose 4.3 percent and reflect the good evolution of the Automobile, Health, Condominium and Homeowners businesses. Life business premiums fell by 6.1 percent due mainly to the low interest rate environment, which makes it difficult to sell savings insurance, and to lower banassurance issuing by banks, who in 2018 underwrote certain group business and launched savings products, activity that was not repeated with the same intensity in 2019.

Attributable earnings amounted to 497.8 million euros, an increase of 3.6 percent over the previous year.

The heavy rainfall and storm that hit Spain in the second half of the year cost an estimated 23 million euros.

Written premiums in key lines

Figures in million euros

158

Código seguro de verificación (CSV): xlvfjCSHJswnKZUFv5fe	COPIA ELECTRONICA
Esta es una copia auténtica impimble de un documento electrónico archivado por la atículo 27.3 c) de la Ley 39/2015, de 2 de octubre. Su
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Earnings

Figures in million euros

The fall in Automobile earnings illustrates the intense competition in this line in Spain, with growing vehicle repair costs and significant rate pressure. This effect is offset by the improvement of the General P&C result, and above all by the growth in earnings of the Life line, especially Life Savings.

The market shares in Spain* and Portugal as at December and September of 2019, respectively, are shown here:

SPAIN	Dec-19	Dec 13
Automobile	20.0%	20.0%
Health	6.5%	6.5%
Other Non-Life	14.2%	14.2%
Total Non-Life	14.1%	14.2%
Total Life	7.9%	7.9%
TOTAL	11.4%	11.3%

* Estimated market shares, using data published by ICEA, which only takes into account direct insurance written premiums.

PORTUGAL	Sept-19	Sept-18
Automobile	2.2%	2.4%
Total Non-Life	2.0%	2.1%
Total Life	0.5%	0.4%
TOTAL	1.1%	1.1%

Source: Portuguese Association of Insurance Companies

ਹਵਾਲੇ

Código seguro de verificación (CSV): xlvfjCSHJswnKZUFv5fe	COPIA ELECTRONICA
Esta es una copia auténtica imprimible de un doumento electrónico archivado por la artículo 27.3 c) de la Ley 39/2015, de 2 de octubre. Su
autenticidad puede ser contrastada a través de la siguiente dirección: https://sede.cnmv/l.ibreAcceso/CSV.aspx

LATAM

LATAM includes the LATAM North, LATAM South and Brazil Regional Areas.

Information by region

Premiums					Attributable result	Combined ratio
REGION	DECEMBER 2019	DECEMBER 2018	A%	DECEMBER DECEMBER 2019	2018	4%	DECEMBER 2019	DECEMBER 2018
BRAZIL	3,977.5	3,972.2	0.1%	97.0	54.1	79.1%	92.2%	98.5%
ATAM NORTH	1,973.1	1,309.3	50.7%	63.1	43.7	44.6%	94.7%	98.1%।
LATAM SOUTH	1,596.7	1,605.7	-0.6%	54.8	59.1	-7.3%	100.0%	97.3%

Figures in million euros

Código seguro de verificación (CSV): xlvfjCSHJswnKZUFv5fe	COPIA ELECTRONICA
Esta es una copia auténtica imprimible de un doumento en la CNMV, según el artículo 27.3 c) de la Ley 39/2015, de 2 de octubre. Su autenticidad puede ser contrastada a través de la siguiente dirección: https://sede.cnmv/LibreAcceso/CSV.aspx

In Brazil, issued premiums remained stable in euro terms, while in Brazilian reals the increase amounts to 2.1 percent. This is due to the depreciation of the Brazilian real by 1.9 percent in the year-on-year comparison.

The evolution of the attributable result in Brazil has been very satisfactory, reaching the figure of 97.0 million euros, with growth of 79.1 percent. The improvement of the result has its origin in the favorable evolution of the Automobile business, where the combined ratio improved from 114.7 percent to 107.5 percent and General P&C Insurance, where the combined ratio improved from 80.8 percent to an excellent 77.9 percent.

In LATAM North, the positive performance of Mexico, the Dominican Republic and Guatemala, together with the appreciation of the main currencies in the region, are the main reasons behind premium growth. The exceptional growth of 50.7 percent is partly due to the fact that during the month of June, the PEMEX comprehensive multiannual damages policy (two years) was renewed for the amount of 502.9 million dollars (449.8 million euros).

There was a significant improvement in results in the LATAM North region, supported by the favorable evolution of the business in Mexico, where earnings increased by 38.9 percent and the combined ratio of 101.8 percent went to 98.1 percent, thanks to the falling Automobile combined ratio, which ended the year at 94.7 percent.

Premiums in LATAM South slipped by 0.6 percent, with the drop stemming mainly from lower issuing in Colombia, Chile, Uruguay and Argentina, although Peru was up, with premiums 12.3 percent better. The fall in Argentina's premiums by 14.7 percent is mainly due to the strong depreciation of the Argentine peso.

LATAM South produced earnings of 54.8 million euros, down 7.3 percent, mainly explained by the extraordinary capital gain of 25 million euros recorded in 2018, deriving from the sale of a property in Chile. The combined Non-Life ratio stood at 100.0 percent and is higher than the previous year, due to an unfavorable evolution in claims.

Written premiums in key lines

Figures in million euros

The following table shows market shares for direct Non-Life insurance in the main countries in the region:

COUNTRY	Ranking (at Dec-2018)	Market share (1)	Market share date
Argentina	17	1.9%	Sept-19
Brazil	2	12.8%	Nov-19
Chile	7	5.1%	Sept-19
Colombia	7	5.3%	Oct-19
Honduras	3	16.4%	Sept-19
Mexico	9	8.3%	Sept-19
Panama	3	16.2%	Sept-19
Peru	3	19.0%	Nov-19
Dominican Republic	4	11.5%	Nov-19

Dominican Republic

Source: MAPFRE Economic Research, using data from the supervisors in each country.

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

162

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INTERNATIONAL

This territorial area comprises the North America and EURASIA Regional Areas.

Information by region

	Premiums			Attributable result			Combined ratio
REGION	A%	DECEMBER 2019	DECEMBER 2018	Δ%	DECEMBER DECEMBER 2019	2018	A%	DECEMBER 2019
NORTH AMERICA	2,331.7	2,425.3	-3.9%	78.6	35.0	124.8%	100.4%	102.1%
EURASIA	1,695.5	1,765.8	-4.0%	15.1	12.5	21.0%	106.1%	106.7%

Figures in million euros

In North America, premiums registered a drop of 3.9 percent. The lower issuing is mainly due to the technical measures adopted in the underwriting of the businesses in the states outside the Northeast region and in the exit from five states, which took place at the end of last year.

Earnings show very positive progress with respect to the previous year, due to an improvement in the technical result and the drop in the Automobile claim rate, where the combined ratio went from 105.3 percent to 104.0 percent, as well as to the absence of economically significant adverse atmospheric phenomena.

In EURASIA, premiums registered a fall of 4.0 percent as a result of the strong depreciation of the Turkish lira (13.1 percent) and the unfavorable evolution of issuing in Malta, Indonesia and Italy. Germany showed premium growth of 4.7 percent and the Philippines was up 0.8 percent.

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevall.

EURASIA recorded an attributable result of 15.1 million euros, which represents a rise of 21 percent over the result for the previous year.

Written premiums in key lines

Figures in million euros

MAPFRE's market shares in the INTERNATIONAL Territorial Area are shown below, as per the most recently available data for each country.

In the state of Massachusetts (USA), the market shares were as follows:

LINE	MASSACHUSETTS
	Dec-18	Dec 7
Automobile	22.0%	22.6%
Total Non-Life	11.5%	11.8%
Total Life	0.0%	0.0%
TOTAL	3.3%	3.3%

Source: MAPFRE Economic Research, using data from the supervisors in each country

164

Código seguro de verificación (CSV): xlvfjCSHJswnKZUFv5fe	COPIA ELECTRÓNICA
Esta es una copia auténtica imprimible de un doumento electrónico por la CNMV, según el artículo 27.3 c) de la Ley 39/2015, de 2 de octubre. Su autenticidad puede ser contrastada a través de la siguiente dirección: https://sede.cnmv.libreAcceso/CSV.aspx

In Puerto Rico:

LINE	PUERT ORICO
	Dec-18	Dec-17
Automobile	14.6%	13.9%
Non-Life (w/o Health)	16.7%	15.2%
Total Non-Life	3.5%	3.0%
Total Life	0.3%	0.4%
TOTAL	3.2%	2.8%

Source: MAPFRE Economic Research, using data from the supervisors in each country.

In the EURASIA region:

LINE	GERMANY		ITALY		MALTA		THE CHANGE CHANGE CHANGE CHANGE CHANGE CHANGE CHANGE CHANGE CHANGE CHART CHEAR CHART CHEAR CHART CHEAR CHART CHEAR CHEAR CHART CHEAR CHART CHEAR CHART CHEAR CHEAR CHEAR CHEAR
		Dec-18 Dec-17	Sept-19	Sept-18		Dec-18 Dec-17	Sept-19	-Sept-18
Automobile	1.2%	1.1%	3.0%	2.9%	36.2%	36.9%	4.7%	5.0%
Total Non-Life	0.3%	0.3%	1.5%	1.5%	33.5%	32.9%	5.2%	5.7%
Total Life	0.0%	0.0%	0.0%	0.0%	77.8%	74.4%	0.4%	0.4%
TOTAL	0.2%	0.2%	0.4%	0.4%	63.3%	61.3%	4.4%	4.9%

Source: MAPFRE Economic Research, using data from the supervisors in each country.

	PHILIPPINES
LINE	Dec-18	Dec-17
Automobile	3.0%	4.0%
Total Non-Life	2.0%	2.9%
Total Life	0.0%	0.0%
TOTAL	5.0%	0.8%

Source: MAPFRE Economic Research, using data from the supervisors in each country

MAPFRE RE

MAPFRE RE is a global reinsurer and is the professional reinsurer of the MAPFRE Group.

MAPFRE RE offers reinsurance services and capacities, providing all kinds of solutions for reinsurance treaties and facultative reinsurance, in all Life and Non-Life lines.

MAPFRE RE also encompasses the Global Risks Unit, which is the specialized unit within the MAPFRE Group for managing global insurance programs for large

165

multinationals (policies that cover aviation, nuclear power, energy, civil liability, fire, engineering and transport for example).

The key data relating to MAPFRE RE is presented here. The 2018 full-year figures have been expressed in comparative terms, including in same the relevant data for the Global Risks Unit.

Key	figures

ITEM	DECEMBER 2019	DECEMBER 2018	A %
Written and accepted premiums	5,580.5	4,960.9	12.5%
- Non-Life	4,986.8	4,360.5	14.4%
- Life	593.7	600.5	-1.1%
Premiums earned, net	3,444.3	3,352.2	2.7%
Gross profit	76.7	230.9	-66.8%
Tax on profits	(19.2)	(62,2)
Non-controlling interests	57.5	168.7	-65.9%
Attributable net result	101.0%	95.6%	5.4 p.p.
Combined ratio	30.5%	27.8%	2.7 p.p.
Expense ratio	70.5%	67.8%	2.7 p.p.

Figures in million euros

TEM	DECEMBER 2019	DECEMBER 2018	A %
Written and accepted premiums	5,580.5	4,960.9	12.5%
Reinsurance business	4,520.4	3,787.1	19.4%
Global Risks business	1,060.1	1,173.8	-9.7%
Net attributable result	57.5	168.7	-65.9%
Reinsurance business	76.7	149.1	-48.5%
Global Risks business	(19.2)	19.5	-198.5%
Combined ratio	101.0%	95.6%	5.4 p.p.
Reinsurance business	99.2%	96.1%	3.2 p.p.
Global Risks business	123.5%	92.1%	31.5 p.p.
Expense ratio	30.5%	27.8%	2.7 p.p.
Reinsurance business	30.0%	27.2%	2.8 p.p.
Global Risks business	37.5%	32.8%	4.8 p.p.
Loss ratio	70.5%	67.8%	2.7 p.p.
Reinsurance business	69.3%	68.8%	0.4 p.p.
Global Risks business	86.0%	59.3%	26.7 p.p.

Figures in million euros

(*) 2018 Global Risks figures are restated for comparison effect.

Total premium issuing at MAPFRE RE grew by 12.5 percent compared to the same period of the previous year.

Premiums for the Reinsurance business amounted to 4.52 billion euros, which represents 19.4 percent growth over the previous year, thanks to an increase in Reinsurance participation with important clients. In addition, issuing for this period grew due to the new reinsurance structure, through the MAPFRE RE subsidiary in Vermont (USA).

Premiums at the Global Risks Unit, integrated in MAPFRE RE, amounted to 1.06 billion euros, down 9.7 percent on the previous year, mainly as a consequence of the transfer of the facultative business underwritten in the European branches to MAPFRE RE and the non-renewal of some unprofitable businesses.

MAPFRE RE's net earnings totaled 57.5 million euros, 65.9 percent worse than the previous year. This lower attributable result is due to:

The catastrophic impact of typhoons Faxai and Hagibis in Japan, for a net amount of 106.5 million euros.
The damages caused by the riots in Chile, which have had a net impact of 20.1 million euros.
The effect of large claims, for a net amount of 56.2 million euros.
Damages arising from drought in Brazil, for a net amount of 10.4 million euros.
An increase in attritional claims.

The combined Non-Life ratio stood at 101.0 percentage points higher than the previous year.

The attributable result of the Global Risks business showed a loss of 19.2 million euros due to the fall in the retention rate of the Global Risks businesses and net earned premiums and to the occurrence of several distinct claims that had a net impact of 27.1 million euros.

Composition of premiums

The breakdown of premium weight distribution to December 2019 is as follows:

ITEM
By Type of business:
Pro-rata	65.5%
Non-proportional	11.2%
Facultative	23.3%


By Region:
IBERIA	1.3%
EURASIA	51.1%
LATAM	28.0%
NORTH AMERICA	19.6%

III ENTE
By Ceding company:
MAPFRE	47.0%
Other cedents	53.0%


By Line:
General P&C	41.4%
Life and Accident	13.7%
Automobile	18.8%
Global Risks Business	19.0%
Transport	2.4%
Other Lines	4.8%

MAPFRE ASISTENCIA

MAPFRE ASISTENCIA specializes in travel assistance, roadside assistance, and other specialty risks of the Group.

Key figures

ITEM	DECEMBER 2019	DECEMBER 2018	A %
Operating revenue	978.8	982.7	-0.4%
- Written and accepted premiums	861.0	911.0	-5.5%
- Other revenue	117.8	71.7	64.3%
Premiums earned, net	629.7	637.4	-1.2%
Result from other activities	(74.6)	18.2
Gross profit	(90.2)	(0.7)
Tax on profits	3.9	(8.1)
Non-controlling interests	(1.3) (1.7)
Attributable net result	(88.0)	(10.1)
Combined ratio	103.3%	103.5%	-0.1 p.p.
Expense ratio	41.1%	41.1%	0.0 p.p.
Loss ratio	62.2%	62.4%	-0.2 p.p.

Figures in million euros

168

MAPFRE ASISTENCIA's operating revenues reduced by 0.4 percent after exiting some loss-making businesses last year. The attributable result of the Unit stands at a loss of 88.0 million euros as at the end of December 2019.

MAPFRE ASISTENCIA's result is strongly determined by the goodwill impairment of several investee companies, following a review of business expectations in the operations in the United Kingdom, the United States and Canada.

The extraordinary goodwill impairment and the provision for restructuring expenses in investee companies of MAPFRE ASISTENCIA have had a joint impact of 75.6 million.

SIGNIFICANT ECONOMIC AND CORPORATE EVENTS

Significant economic events.

Impairment of goodwill in MAPFRE ASISTENCIA investee companies.

The Group has updated its business forecast for assistance, travel insurance and specialty risks in the United Kingdom and North America as part of its strategic planning. Due to the drop in expected profits in the United Kingdom as a result of the complex socioeconomic environment and predictable slowdown of its economy due to the uncertainty over Brexit, it was decided to recognize a total impairment of goodwill for the MAPFRE ASISTENCIA companies in that country, in the amount of 48.4 million euros. Also, as part of a decrease in unprofitable business in the United States and Canada, goodwill attributed to those countries was revised, resulting in an impairment of goodwill in the amount of 17.2 million euros.

This impairment of goodwill has no effect whatsoever on the liquid assets generated by the Group in the fiscal year, and it does not affects its financial strength or flexibility, or the capital models supporting current ratings and the high solvency margin of the Group and its subsidiaries, as the goodwill is excluded in their calculation, and thus maintains its important dividend generating capacity.

Extraordinary catastrophic events.

The typhoons Faxai and Hagibis that occurred in Japan in the months of September and October, as well as the damages produced in the recent riots in Chile, have meant that MAPFRE's attributable result for the 2019 fiscal year, mainly via the reinsurance business, will be impacted in the amount of 130.3 million euros.

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevall.

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Significant corporate events.

Operational restructuring.

Restructuring of business in MAPFRE ASISTENCIA's affiliated companies.

MAPFRE is in the middle of an ongoing process of geographic reorganization of its activities in several of the countries where MAPFRE ASISTENCIA operates. The decision to speed up the geographic reorganization process for the Asistencia Unit has involved including in the result to December a provision for restructuring expenses, for an attributed amount of 10.0 million euros.

MAPFRE's new configuration for the large industrial and commercial risk insurance business.

Administrative authorization was obtained in March 2019 to complete the business restructuring operation of MAPFRE GLOBAL RISKS, whereby:

1. Purely insurance or reinsurance activities of MAPFRE GLOBAL RISKS and the assets and liabilities related to them were transferred to MAPFRE ESPAÑA and MAPFRE RE, respectively.
1. A company was constituted that will continue the operations of MAPFRE GLOBAL RISKS, involving the analysis and underwriting of large industrial and commercial risks, and acting as an agent of MAPFRE ESPAÑA and MAPFRE RE.

Execution of the restructuring has had no significant impact on the consolidated financial statements of the Group.

- Reorganizing VERTI Italy as a branch office.

The management of MAPFRE S.A. and the Group companies involved agreed to convert VERTI Italy into a branch of VERTI Spain. This will be handled via a cross-border merger, with VERTI Spain absorbing VERTI Italy and creating a branch office in Italy to which the insurance portfolio of that company will be assigned. A spin-off transaction will later take place, with MAPFRE INTERNACIONAL spinning off the shares that it receives from the contribution of VERTI Italy, so that MAPFRE ESPAÑA will again become the sole holder of the shares in VERTI Spain. Both the merger and the subsequent spin-off will be subject to the fiscal neutrality regime in force in Spain.

Underway at the end of 2019, this operation is in the process of obtaining the respective administrative authorizations.

MAPFRE and SantaLucía partnership for joint development of its business in Spain.

On June 5, 2019, MAPFRE and SantaLucía formed a strategic partnership for the joint development of their respective funeral businesses in Spain. The preliminary value of assets contributed to the partnership is 322.5 million euros, pending final adjustments that are to be completed on the effective date of conclusion of the transaction. Once the final values are set, it is agreed that MAPFRE will hold 25 percent of the share capital through its branch FUNESPAÑA, and SantaLucía the remaining 75 percent, for which payment will be made in cash between the parties for the amount required to reach the indicated swap.

MAPFRE ESPAÑA and SantaLucía will contribute the funeral business that they have in our country from the companies FUNESPAÑA and Albia, both leading companies in the sector. An authorization request has been submitted for this partnership with the National Commission on Markets and Competition (CNMC); the authorization is expected to be granted shortly.

- Rastreator insurance comparison tool.

The transaction between MAPFRE, Admiral and Oackley Capital that was intended to unify their Spanish insurance comparison engine businesses, Rastreator Spain and Acierto, was canceled as a result of the delay in obtaining the corresponding administrative authorizations.

Business development. Acquisitions and disposals.

Purchase from Bankia of 51 percent of Caja Granada Vida and Cajamurcia Vida y Pensiones and Bankia network Non-Life insurance distribution agreement.

In December of 2018 MAPFRE and Bankia reached an agreement for the reorganization of its bancassurance partnership, with MAPFRE VIDA acquiring 51 percent of the share capital of the insurance companies Caja Granada Vida, Compañia de Seguros y Reaseguros, S.A. and Cajamurcia Vida y Pensiones de Seguros y Reaseguros, S.A., for a total price of 110.3 million euros.

The corresponding administrative authorizations were obtained in the first quarter of 2019, thereby finalizing the acquisitions mentioned. Consequently, the financial statements of these companies were included in the consolidated statements of the Group starting from March.

A partial, non-extinguishing, modifying novation agreement of the agency contract for the exclusive distribution of Non-Life insurance was signed with Bankia in December 2018 to expand the exclusive sale of MAPFRE general P&C solutions to the entire network arising from BMN, which would convert MAPFRE into an exclusive distributor of Non-Life insurance for the entire Bankia network. This agreement took effect on January 14, 2019, the date on which the fixed initial commission for 51.4 million euros became effective.

- MAPFRE - Banco Santander agreement.

On January 21, 2019, MAPFRE and Banco Santander, S.A. reached a partnership agreement whereby the financial institution will market and distribute Automobile, Multirisk Commercial, Multirisk SME and Third-Party Liability insurance exclusively via its network in Spain through December 2037.

Based on this binding agreement, in June 2019 MAPFRE S.A. acquired 50.01 percent of a newly created company in the amount of 82.3 million euros from Banco Santander through its MAPFRE ESPAÑA subsidiary. This company will manage the exclusive marketing of the insurance lines indicated, via the Banco Santander network.

During the month of November 2019, operational authorization was received from the Directorate General for Insurance. The new company is expected to commence activities in the first quarter of 2020.

- Bancassurance agreement with Actinver in Mexico.

MAPFRE concluded a strategic partnership with the financial institution Actinver in Mexico in 2019. The agreement involves exclusivity of sale via the Actinver channel in any manner of all MAPFRE Mexico insurance products, and also includes a partnership agreement to share the results obtained by MAPFRE as a business product on the Actinver channel. The agreement involved an upfront payment amounting to 24.8 million euros, plus a variable amount depending on the evolution of the business.

The agreement went into effect in March, immediately after signing.

- Acquisition of 10 percent of the capital of Abante.

MAPFRE and Abante signed a strategic partnership related to asset management and insurance in the Spanish market. The insurance group took a 10 percent share of Abante via a capital expansion involving a payment of 14.4 million euros, and holds an option to acquire an additional 10 percent, up to a maximum of 20 percent, within three years. This payment was made on October 22, 2019.

Transfer of the MAPFRE INVERSION business to BNP.

During the year, MAPFRE INVERSIÓN, SOCIEDAD DE VALORES, S.A. concluded the sale of its group investment institutional custodian and voluntary social protection entities business to BNP Paribas Securities Services, S.C.A., Sucursal en España, for a price of 4 million euros in cash plus a variable amount related to the performance of the business transferred.

Sale of MAPFRE RE shares.

On June 21, 2019, MAPFRE sold shares representing 1.07 percent of the capital of MAPFRE RE to non-controlling interests in the amount of 18.3 million euros, as part of the business restructuring of MAPFRE GLOBAL RISKS.

Additionally, on November 13, 2019, MAPFRE proceeded to purchase shares representing 0.76 percent of MAPFRE RE's capital from non-controlling interests for an amount of 13.2 million euros.

As a result of these transactions, MAPFRE S.A.'s participation in MAPFRE RE stood at 93.77 percent at the end of fiscal year 2019.

Sale of occupational risk insurance portfolio in Peru.

In the fourth quarter of 2019, MAPFRE PERÚ sold the long-term occupational risk portfolio in force as of January 31, 2018, classified in the balance sheet as an asset held for sale, for an amount of 69 million euros. This transaction generated a surplus of 3.8 million euros, net of taxes.

ISSUES RELATING TO THE ENVIRONMENT, SECURITY AND EMPLOYEES

Environment

MAPFRE is committed to environmentally sustainable development, and notably distinguishes itself in this regard in the fight against climate change. Its determination to play a relevant part in these issues requires a short-, medium- and long-term strategy, for which it is constantly analyzing the climate scenario and the global context.

The Group has an Environmental Policy in place, approved by the Board of Directors of MAPFRE S.A., which is implemented in all Group companies and which is currently being reviewed to incorporate new commitments undertaken toward a circular economy.

During 2019, MAPFRE worked to redesign its environmental strategic model to manage all aspects associated with environmental and energy sustainability, greenhouse gas emissions and the circular economy. The model enables plans and programs to be defined, minimizing the risks identified and promoting the exploitation of opportunities that arise.

In terms of environmental aspects, certifications have already been issued to 37 Group company locations in Spain, Brazil, Mexico, Colombia, Puerto Rico, Paraguay, Portugal, Argentina, Chile and Turkey, to which can be added the 20 office complexes located in Spain with energy management certification.

As for the Company's Carbon Footprint, the expansion of the scope of UNE-EN-ISO 14064 continues to progress, and the carbon footprint of the Group companies located in Spain, Italy, Puerto Rico, Colombia, Peru, Portugal and Mexico has been verified.

In relation to mitigation and adaptation to Climate Change, the implementation of the measures defined in the Energy Efficiency and Climate Change Strategic Plan 2020 continues, having achieved the established goals ahead of schedule.

In addition, and as our leadership in climate issues shows, MAPFRE has established new and ambitious objectives:

· Over the medium-term, MAPFRE is committed to being a carbon-neutral company by 2030.
· In the short-term, it is committed to achieving neutrality in its activities in Spain and Portugal by 2021.

The adoption of the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD) of the Financial Stability Board (FSB) continues to be analyzed to determine the financial impact of climate change. For this reason, MAPFRE along with 21 insurers and reinsurers worldwide are part of the Work Group coordinated with the UNEP-FI of the United Nations, whose principal objective is to develop metrics and financial models for dealing with possible implications of climate change in business in a sound manner

Furthermore, bearing in mind the conditions that climate change provokes in the biological diversity of our planet, specific programs will continue to be developed for conservation, including those that continue to sponsor the project for reforestation of

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the Doñana National Park through the "100 Companies for Forests" initiative of WWF Spain, as well as the annual protection of an endangered species and its habitat, with the species selected in 2019 being the tiger.

Regarding promotion of environmental responsibility in society, the corporate volunteering day "Everyone for the Environment" was held for the third year in a row with more than 2,300 volunteers, including employees from 70 different cities in 25 countries around the world, undertaking reforestation tasks in degraded areas, planting more than 1,800 trees and collecting more than 14 tons of garbage on riverbanks and beaches, demonstrating once again the commitment and involvement of our employees in this area.

Security

Work continued throughout 2019 on achieving a secure environment in which MAPFRE can pursue its everyday activities through the protection of tangible and intangible assets, including services offered to clients in accordance with the provisions of the Corporate Security and Privacy Policy approved by the MAPFRE S.A. Board of Directors on December 13, 2018. This all takes places in a continuously more complex context characterized by more and more frequent cyber attacks and extreme weather phenomena, increasing regulatory pressure and growing instability in countries and regions in which the Group has a significant presence, particularly in Latin America.

In dealing with protection against cyber risks, MAPFRE has continued to improve its existing protection, detection and response mechanisms. The development of consistent criteria and the application of rigorous mechanisms, controls and procedures for responding to cyber threats designed to facilitate the secure adoption of cloud computing technologies are prominent in this regard. In the event of a possible cyber incident, it is important to note that MAPFRE provides insurance protections specifically designed to reduce the economic impact of such an event.

The capacity for monitoring and responding to cyber attacks was also certified in 2019 by MAPFRE's CCG-CERT under ISO standard 27001, the worldwide standard in cyber security and data security. This certification is combined with ISO 9001, which this Center has.

Regarding the privacy and protection of data, separate projects have been implemented designed to automate and optimize processes related to compliance with the General Data Protection Regulation (GDPR). Various efforts have also been launched to take advantage of possible existing synergies with the GDPR related to MAPFRE's adaption with local regulations that have been implemented; of note are

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the adaptation with the Brazilian Data Protection Act (LGPD), which will enter in force in August 2020, and the specific regulations regarding Cyber Security in Colombia.

MAPFRE continued to work on the updating and improvement of crisis management and business continuity procedures, as well as the verification of their effectiveness, by testing the various strategies that have been implemented in accordance with the Business Continuity Policy approved by the Board of Directors of MAPFRE S.A.

Situations have arisen during the reporting period requiring the implementation of defined plans in several countries such as the USA, Brazil, Chile, Ecuador, Colombia or Spain, where an effective and appropriate response was provided to our clients during difficult moments.

In the area of Business Continuity, the granting by AENOR of ISO 22301 Certification to the Business Continuity Management Systems of MAPFRE INVERSIÓN and MAPFRE VIDA should be noted, combined with those previously obtained by GLOBAL RISKS, MAPFRE RE and the Benefits and Provider Areas, the scope of which was expanded this year with the Non-Life Technical Area and MULTIMAP, and the Operations area of MAPFRE ESPAÑA.

Regarding personal security, work is ongoing on improving the capacity to provide reliable information in real time, allowing for a proactive response to risks that may affect personal integrity and operational and movement capacity, using tools that allow the sharing of information, remote access and the development of agile and flexible processes.

MAPFRE continues its commitment to talent and delivering constantly more specialized training to its workforce so they can perform to the best of their abilities in an increasingly complex and challenging environment. Consequently, the number of professional certifications in security-related areas surpassed 400 in 2019.

Employees

The chart below shows the headcount at the end of 2019, compared with the headcount for the previous fiscal year.

CATEGORIES	TOTAL NUMBER
	2019	2018
BOARD DIRECTORS (*)	18	18
EXECUTIVES	48	40
SENIOR MANAGEMENT	1,627	1,508
MANAGERS	4,253	4,774
ADVISORS	17,073	16,933
ASSOCIATES	11,305	12,117
TOTAL	34,324	35,390

(*) Executive board directors of Spanish companies.

The Corporate People and Organization Area supports the business in its transformation and is in charge of adapting the organization to new social requirements, utilizing new technologies and digital solutions to do so. It is also responsible for identifying and retaining the talent required by the company, as well as employee development. It performs those tasks in a flexible, inclusive and diverse working environment that promotes collaboration and innovation.

People management is particularly important in a global company such as MAPFRE, and is based on three key pillars: the continuous challenge of talent, promoting and driving diversity, and the inclusion, transformation and organization of the work environment in the face of the digital challenge. This is all in line with a new way of working, making the employee experience the key focus of all processes.

The MAPFRE Group applies policies approved by the Board of Directors of MAPFRE S.A. covering all Group employees.

In implementing its Diversity and Equal Opportunities Policy, MAPFRE has undertaken a series of public commitments in gender diversity and functional diversity.

With regard to gender diversity, MAPFRE undertakes to ensure that by 2021, 45 percent of the managerial vacancies that arise in the company will be filled by women. As such, the company has started to take steps to ensure that all of the selection and mobility processes for managerial positions will require action to be taken to promote the representation of women. In 2019, 48.3 percent of managerial vacancies were filled by women.

Functional diversity includes championing the integration of people with disabilities in the workplace. To that end, MAPFRE is committed to ensuring that 3 percent of its workforce is made up of people with disabilities by 2021. Since 2015, the Group has 177

had a Corporate Disability Program in place that has been implemented in every country, which includes measures to promote integration and a culture of awareness. In 2019, 2.9 percent of the workforce was comprised by people with some form of disability.

MAPFRE operates worldwide and has employees of 84 nationalities, which brings great cultural diversity to the Group, provides the talent the business needs, and facilitates the cognitive intelligence of employees to be pooled. As such, over the past few years, the Knowledge Management project has been developed, which was concluded this year with the creation of a knowledge repository on the corporate Intranet called Eureka, a distinctive taxonomy with over 530 terms and the identification of 1,572 knowledge references in the Group. At the end of 2019, 510 pieces of knowledge had been added to the repository. Meanwhile, as part of the comprehensive management of knowledge, the monitoring programs have continued to be developed, with 211 mentor employees and 247 mentees; and self-learning with 231 actions.

MAPFRE's employees span five generations, and in 2019, a new project was designed, the objective of which is to consolidate a workplace in which all the available talent is leveraged in the company, regardless of age, which focuses on creating a culture that favors generational integration in terms of the organization, professional development, job flexibility, social protection, health and well-being of senior talent.

The Respect for People Policy guarantees a workplace that does not tolerate any manifestation of harassment or violent or offensive behavior against the rights and dignity of others. The Group expressly opposes, and does not tolerate, any harassment in the workplace, regardless of the identity of the victim or the harassing person. This commitment must be present in relationships among employees and in relationships between employees and providers, clients, collaborators and other stakeholders. It also extends to all organizations with which MAPFRE is involved.

The Promotion, Selection and Mobility Policy encourages professional development opportunities for employees in order to increase their employability, their professional satisfaction and their commitment to the company.

In 2019, functional mobility, our main development tool, reached 14.9 percent of the workforce and international mobility led 129 employees to switch their job position to one of 25 different countries.

The company has introduced new behaviors and habits in order to promote an environment of collaboration, innovation, agility, respect and communication. Over the year, 133,661 hours of training were imparted, geared toward communicating the

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new behaviors, and the MAPFRE innova intrapreneurship program was carried out, involving 3,300 employees.

A new performance evaluation system was defined and implemented that reinforces the development of the new behaviors, allowing activities that facilitate compliance with the objectives to be defined and monitored regularly. This system offers continuous feedback and 360° evaluation. In 2019, evaluations were completed on 26,416 employees, representing 84 percent of the workforce.

To facilitate well-being and a satisfactory work-life balance, MAPFRE offers its employees a wide range of social benefits, which accounted for an investment of 178.3 million euros in 2019.

In 2019, a new measurement model was introduced that allows the company to constantly deepen our analysis of the employee experience. This model is based on three types of measurements that streamline the implementation of improvement actions.

RECOMMENDATION, SATISFACTION AND ENGAGEMENT: through a survey carried out twice yearly that generates various indications, including the following:

Relational eNPS®: Employee net promoter score, measures the likelihood that employees will recommend MAPFRE as a company to work for. In 2019, measurements were taken in 11 countries, and in 86 percent of the workforce assessed, a very good or excellent result was obtained.
Engagement Survey (Employee Satisfaction Index ESI): measures employee satisfaction through the assessment of 10 elements: Knowledge of Objectives, Pride in Work Carried Out, Recognition for Work Carried Out, Contribution to the Company, Receipt of Quality Feedback, Opportunities for Development, 179

Collaboration, Working Tools, Care for People, Pride in the Social Footprint. In 2019, the result was 68 percent.

LIQUIDITY AND CAPITAL RESOURCES

INVESTMENTS AND LIQUID FUNDS

The breakdown of the investment portfolio by asset type as at December 31 of each fiscal year is shown below (the figures for the previous year are written in a smaller font):

ITEM	DECEMBER 2019	DECEMBER 2018	A %
Government fixed income	30,088.8	27,595.9	9.0%
Corporate fixed income	9,354.9	8,921.6	4.9%
Real estate*	2,435.0	2,096.2	16.2%
Equity	2,761.0	2,407.1	14.7%
Mutual funds	1,826.1	1,330.4	37.3%
Cash	2,537.5	2,201.4	15.3%
Other investments	4,519.4	4,720.8	-4.3%
TOTAL	53,522.7	49,273.5	8.6%

Figures in million euros

*"Real Estate" includes both investment property and real estate for proprietary use (at acquisition price).

Código seguro de verificación (CSV): xIvfjCSHJswnKZUFv5fe	COPIA ELECTRONICA
Esta es una copia auténtica imprimible de un documento por la CNMV, según el artículo 27.3 c) de la Ley 39/2015, de 2 de octubre. Su autenticidad puede ser contrastada a través de la siguiente dirección: https://sede.cnmv/LibreAcceso/CSV.aspx

A breakdown of the Fixed Income portfolio by geographical area and asset type follows:

ITEM	Government	Total corporate debt	Tota
Spain	18,181.8	2,378.6	20,560.4
Rest of Europe	5,015.8	3,802.6	8,818.4
United States	1,588.7	2.133.3	3,721.9
Brazil	3,020.6	2.0	3,022.5
Latin America - Other	1,828.3	778.1	2,606.3
Other countries	453.7	260.4	714.1
TOTAL	30,088.8	9,354.9	39,443.7

Figures in million euros

Four different types of portfolios are managed within the investment portfolio:

· Those that aim for a strict immunization from the obligations derived from insurance contracts, and which minimize interest rate risk, through matching adjustments, by means of immunization techniques based on matching cash flow or duration.
Portfolios that cover unit-linked policies composed of assets for which the risk is borne by policyholders.
Conditioned actively management portfolios that aim to exceed the guaranteed return and achieve the highest return for the policyholders within prudential parameters, such as portfolios with profit sharing.
· Actively open-management portfolios where active management is only conditioned by legal rules and internal risk limits.

The English version is a translation of the original in information purposes only. in case of discrepancy, the Spanish version shall preval.

	Market Value	Accounting Yield	Market Yield	Modified Duration
Non-Life (IBERIA + MAPFRE RE + GLOBAL RISKS)
12/31/2018	7,162.7	2.11%	1.42%	6.75%
03/31/2019	7,007.3	1.99%	1.09%	7.12%
06/30/2019	7,403.2	2.02%	0.74%	8.06%
09/30/2019	7,485.6	1.89%	0.50%	8.18%
12/31/2019	7,271.9	1.95%	0.78%	8.25%
Life (IBERIA)
12/31/2018	6,238.8	3.91%	1.05%	6.60%
03/31/2019	6,389.1	3.72%	0.74%	6.68%
06/30/2019	6,740.3	3.69%	0.32%	7.01%
09/30/2019	6,871.9	3.64%	0.14%	7.03%
12/31/2019	6,821.6	3.53%	0.33%	6.89%

Below is a breakdown of actively managed Fixed Income portfolios:

Figures in million euros

As on December 31, 2019, the freely actively managed portfolios in IBERIA and MAPFRE RE had unrealized net gains in assets and mutual funds of 47 million euros.

Real estate

In 2019, the MAPFRE Group real estate investments strategy was in line with the previous year in terms of indirect and direct investments; that is focused on office buildings, in central areas within the eurozone, profitable assets and first-rate tenants and long-term contracts. The market continues to experience a strong compression in yields, particularly in the top European cities. As Brexit has caused some corporate headquarters to be moved from London to Paris or Frankfurt and other cities, demand has risen, which led to an increase in rents in certain downtown areas. In addition, the market changes as a result of the activity of coworking companies has driven prices up in certain areas and cities, such as Berlin, Paris, Barcelona and Madrid.

The backdrop of low interest rates significantly hinders the search for direct investment opportunities, particularly in Madrid and Barcelona, where SOCIMIs (Sociedades Anónimas Cotizadas de Inversión Inmobiliaria - listed limited real estate investment companies) are very active, as they can leverage more debt (due to their tax breaks and unlimited tax deductibility in the financial expenses generated) and therefore be more aggressive in offering a greater ROE.

As for direct investment, activity focused on making improvements to buildings and modernizing facilities in profitable buildings as well as those for own use. Noteworthy among the profitable buildings are the works on Avenida General Perón 40 in Madrid and Torre MAPFRE in Barcelona. MAPFRE's real estate portfolio now includes more than 139,000 square meters with the LEED Gold, BREEAM or Energy Star rating.

In the own-use buildings, efficiency and optimization work is still being done on the space in the central headquarters, regional headquarters and offices in the sales network. This policy is universal for MAPFRE in every country in which it operates.

In indirect investments, also with the objective of operating in the eurozone, a specialpurpose vehicle (SPV) was established in Luxembourg, in addition to the two from 2018. In 2019, the acquisitions that stood out were those in Hamburg, Paris and Milan. These investments were made with local manager partners and a low level of leverage. The increase in net asset value (NAV) in 2019 compared to some of the operations carried out in 2018 and 2019 was significant.

Notable among divestments in 2019 was the sale of the Brussels building, Rue de Treves 45 in Belgium. With regard to land, the sale of the El Cantizal residential plot in Laz Rozas, Madrid, stands out.

At the end of the 2019 fiscal year, MAPFRE's real estate investments at market value amounted to 3.3 billion euros, with a net book value equal to 4.6 percent of total investments.

The occupancy level of buildings rented to third parties was 92 percent, and the return on the appraisal value was 4.16 percent.

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall preval.

CAPITAL RESOURCES

Capital structure

The accompanying chart shows the composition of the capital structure at the 2019 fiscal year-end:

The capital structure amounts to 13.1 billion euros, of which 77 percent corresponds to equity. The Group has a leverage ratio of 22.7 percent, up by 0.2 percentage points compared to the end of 2018. The increase in debt as of December 2019 stems mainly from the acquisition of the BMN Bankia and Banco Santander businesses.

Debt instruments and leverage ratios

The following chart shows the evolution of the Group's debt instruments and leverage ratios:

ITEM	DECEMBER 2019	DECEMBER 2018
Total equity	10,106.9	9,197.6
Total debt	2,973.7	2,670.3
- of which: senior debt - 5/2026	1,004.8	1,004.0
- of which: subordinated debt - 3/2047 (First Call 3/2027)	617.8	617.6
- of which: subordinated debt - 9/2048 (First Call 9/2028)	503.3	503.0
- of which: syndicated loan 02/2023 (1 billion euros)	610.0	490.0
- of which: bank debt	237.8	55.6
Earnings before tax	1,279.2	1,330.5
Financial expenses	78.5	76.5
Earnings before tax and financial expenses	1,357.7	1,407.0
Leverage	22.7%	22.5%
Equity / Debt coverage	3.4	3.4
Earnings before tax and financial expenses / financial expenses (x)	17.3	18.4

Figures in million euros

Equity developments

Consolidated equity reached the figure of 10.11 billion euros as on December 31, 2019, compared to 9.2 billion euros as on December 31, 2018. As on December 31, 2019, 1.25 billion euros corresponded to non-controlling interests' participation in subsidiaries, mainly financial companies in Spain and Brazil with which MAPFRE maintains bancassurance agreements. Consolidated equity attributable to the controlling Company per share was 2.87 euros as on December 31, 2019 (2.60 euros as on December 31, 2018).

The accompanying chart shows changes in equity attributable to the controlling Company in the period:

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ITEM	DECEMBER 2019	DECEMBER 2018
BALANCE AT 12/31 PREVIOUS FISCAL YEAR	7,993.8	8,611.3
Adjustments for changes in accounting criteria	(8.4)	0.0
Additions and deductions recognized directly in equity:
Financial assets available for sale	1,435.1	(472.7)
Currency conversion differences	35.8	(102.8)
Shadow accounting	(719.6)	143,9
Other	(4.9)	1,4
TOTAL	737.9	(430,2)
Result for the period	609.2	528,9
Dividends	(446.5)	(446,5)
Other changes in equity	(40.1)	(269,7)
BALANCE AS AT PERIOD END	8,854.3	7,993,8

Figures in million euros

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

The evolution of the equity attributable to the controlling Company at the end of fiscal year 2019 includes:

An increase of 1.44 billion euros in the market value of the portfolio of financial assets available for sale due to the drop in interest rates in Europe and the United States, as well as the rise in European and North American stock markets, which is reflected to the corresponding amount in shadow accounting.
A net increase of 35.7 million euros due to currency conversion differences, mainly due to the appreciation of the dollar and other Latin American currencies.
Earnings as at December 2019.
A reduction of 446.5 million euros comprising the final dividend for the 2018 fiscal year, approved at the Annual General Meeting of March 2019 and paid in the month of June 2019, in the amount of 261.7 million euros, and the interim dividend for the fiscal year 2019 approved during the third quarter and paid during the month of December 2019, in the amount of 184.8 million euros.

The breakdown of equity attributable to the controlling Company is as follows:

ITEM	DECEMBER 2019	DECEMBER 2018
Capital, retained earnings and reserves	8,616.7	8.482.3
Treasury stock and other adjustments	(66.4)	(41.4)
Net capital gains	1,006.3	290.8
Unrealized capital gains (Available-for-sale portfolio)	3,565.2	2.130.1
Shadow accounting	(2,558.4)	(1,839.3)
Currency conversion differences	(704.2)	(737.9)
Attributable equity	8,854.3	7,993.8

Figures in million euros

The financial statements of companies domiciled in countries with high inflation rates or hyperinflationary economies are adjusted or restated so as to take account of the effects of changes in prices before their conversion into euros. The Group's accounting policy for recording transactions in hyperinflationary economies consists in recording in Reserves both the revaluation of non-monetary items and the currency conversion differences generated by converting the restated financial statements of the subsidiaries in these countries to euros.

The amounts recognized in Reserves in the last two years deriving from both effects are as follows:

ITEM	DECEMBER 2019	DECEMBER 2018	Variation
Restatement for inflation	564.8	542.8	22.0
Currency conversion differences	(1,102.8)	(1,070.8)	(32.0)
TOTAL	(538.0)	(528.0)	(10.0)

Figures in million euros

SOLVENCY II

The Solvency II ratio for the MAPFRE Group was 194.6 percent in September 2019, compared to 198.0 percent at the close of June 2019, including transitional measures. Excluding the effects of said measures, this ratio would have been 179.3 percent. Eligible own funds reached 9.06 billion euros in the same period, of which 86.7 percent are high-quality funds (Tier 1).

The ratio shows a high level of solidity and stability, backed by high diversification and strict investment and Asset and liability management (ALM) policies, as can be seen in the charts below.

Solvency margin breakdown (Solvency II)

Figures in million euros

The amount of SCR is calculated annually, as recalculation is not required during the year unless there has been a significant change in the risk profile.

Impact of transitional measures and matching and volatility adjustments

Ratio at 09/30/2019	194.6%
Impact of transitional measures on technical provisions	-14.3%
Impact of transitional measures on equity	-1.0%
Impact of transitional measures on non-euro currency assets	0.0%
Total ratio without transitional measures	179.3%

Ratio at 09/30/2019	194.6%
Impact of matching adjustment	1.8%
Impact of volatility adjustment	-1.4%
Total ratio without reconciliation and volatility adjustments	194.9%

IFRS and Solvency II Capital Reconciliation

Figures in million euros

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

Breakdown of Solvency Capital Requirement (SCR)

The SCR for the last two fiscal years calculated for December 2018 and 2017 is indicated below.

⁽¹⁾ Includes other financial sectors, non-controlled participations and residual undertalings.

Figures in million euros

ANALYSIS OF CONTRACTUAL OPERATIONS AND OFF-BALANCE SHEET OPERATIONS

At the fiscal year-end, MAPFRE had the following formal agreements for the development and distribution of insurance products in Spain with different companies, some of which have undergone, or are currently immersed in, processes related to the restructuring of the banking system:

■ Agreement with Bankia, S.A. in relation to the strategic partnership begun in 1998 with its predecessor Caja de Ahorros y Monte de Piedad de Madrid. The contract was redrafted in 2014 to include a new agreement for the exclusive distribution of MAPFRE Life and Non-Life insurance through the entire Bankia sales network (hereinafter the "Agreement") and the continued joint participation in BANKIA MAPFRE VIDA (previously called MAPFRE-CAJA MADRID VIDA), which specializes in marketing Life insurance through the aforementioned sales network. The Agreement involved the restructuring of the bancassurance business and included an assurbanking agreement through which MAPFRE distributes Bankia financial products using its sales network.

The Agreement also involved the acquisition in 2014 of 51 percent of shares in Aseval and Laietana Vida and 100 percent of shares in Laietana Generales, for an overall price of 151.7 million euros.

The final economic value of the Agreement will depend on the future level of fulfillment with the agreed Business Plan.

In addition, an agreement was reached in December 2018 with MAPFRE VIDA acquiring 51 percent of Caja Granada Vida and Cajamurcia Vida y Pensiones for a total price of 110.3 million euros. The definitive closing of this transaction took place in March 2019, once approval was obtained from the corresponding regulatory and supervisory authorities.

This agreement also extends the scope of activity of the current partnership for general P&C in the Non-Life line to the BANCO MARE NOSTRUM network.

" Agreement with Banco Castilla-La Mancha, S.A. (as the successor to the banking and para-banking activity of Caja Castilla-La Mancha) for the exclusive distribution of personal insurance and pension schemes of the jointly owned company CCM Vida y Pensiones (of which MAPFRE owns 50 percent) through the company's network.

The acquisition price for the shares was 112 million euros in cash, plus additional payments to be made in 2012 and 2021. In 2012, the sum of 4.5 million euros was paid to Caja de Ahorros Castilla La Mancha (now Banco Castilla-La Mancha), and at the end of the year there was a provision for possible payments amounting to 24.4 million euros.

" Agreement with Bankinter S.A. for the exclusive distribution of Life and Accident insurance and pension schemes of the jointly owned company Bankinter SEGUROS DE VIDA (of which MAPFRE owns 50 percent), through the bank's sales network.

The acquisition price for the shares was 197.2 million euros in cash, plus two payments of 20 million euros each plus interest to be paid, in light of the degree of compliance with the business plan, in the fifth and tenth year of said plan. In 2012, the degree of compliance with the business plan led to payment of the first additional amount, namely 24.2 million euros. As the long-term objectives were not achieved, the provision set up in the amount of 29 million euros was canceled during the first quarter of 2017.

On April 1, 2016 Bankinter Seguros de Vida, owned 50-50 by Bankinter and MAPFRE, purchased the insurance business of Barclays Vida y Pensiones in Portugal for the sum of 75 million euros.

" Agreement with Bankinter S.A. for the exclusive distribution of general and business insurance (excluding Automobile, Travel and Homeowners insurance) for the jointly owned company Bankinter Seguros Generales (of which MAPFRE owns 50.1 percent), through the bank's sales network.

The acquisition price of the shares was 12 million euros in cash (in addition to the payment of 3 million euros for the purchase of shares on December 27, 2011), plus an additional 3 million euros to be paid in the event of full compliance with the "December 2012 Business Plan" by the end of 2015. This additional price has not accrued due to non-compliance with this Business Plan.

* Agreement with Banco Santander S.A. for the exclusive distribution of certain Non-Life products. In January 2019, an agreement was reached whereby MAPFRE ESPAÑA would acquire from Banco Santander 50.01 percent of a newly established company to sell automobile insurance, multirisk commercial, multirisk SME and third-party liability insurance exclusively via its Banco Santander network in Spain, for a period until December 31, 2037. The remaining 49.99 percent of said company's capital still belongs to Banco Santander, through its subsidiary Santander Seguros.

The operation, which amounts to 82.2 million euros, came to a close in June 2019 upon receiving the approval of the corresponding authorities.

In November 2019, a Ministerial Order was issued by the Ministry of Economy and Enterprise allowing the new company known as SANTANDER MAPFRE SEGUROS Y REASEGUROS S.A. to operate in the stated lines.

The restructuring of the strategic partnership with Banco do Brasil began in 2018. The result of this restructuring was that commencing November 30, 2018, MAPFRE held 100 percent (previously 50 percent) of all of the business (Life and Non-Life) generated by the agency channel, and the automobile and large-risk businesses that are distributed through the bank channel. It also maintains its current share (25 percent) in BB MAPFRE, which incorporates homeowners insurance from the bank channel into its business.

In addition, MAPFRE and Euler Hermes have a strategic partnership in place to jointly develop the surety and credit insurance business in Spain, Portugal and Latin America. Under this agreement, both companies hold a 50 percent stake in a joint venture 193

called Solunion, integrating the businesses of both groups in the aforementioned markets. Solunion covers risks in countries all around the world and has an international network of risk analysts located in more than 50 countries, who continuously monitor the situation regarding the risks of their insured, in addition to an extensive distribution network in countries in which it is present.

Lastly, the non-controlling shareholders of MAPFRE RE have a put option on the shares of this company. If exercised, MAPFRE or a MAPFRE Group company would have to acquire the shares from the selling minority shareholder. The purchase price for the MAPFRE RE shares will be calculated using the previously agreed formula. At December 31, 2019, based on the variables included in the aforementioned formula, the commitment assumed by MAPFRE if this option were exercised would amount to a total of approximately 109 million euros.

MAIN RISKS AND UNCERTAINTIES

MAPFRE's risk management system (RMS) is based on the integrated management of each and every business process and the alignment of risk levels to the defined strategic objectives.

FINANCIAL AND CREDIT RISK

Market and interest rate risks

A significant part of the results and assets is subject to financial market fluctuations. These changes in market prices may reduce the value of or revenues deriving from the investment portfolio, which in turn may have a negative impact on the Group's financial situation and consolidated results.

Prudent selection of financial assets with adequate characteristics to cover the obligations assumed is the principal measure for mitigating the possible adverse effects of variations in market prices.

MAPFRE mitigates its exposure to market and interest rate risks by means of a prudent investment policy characterized by a high proportion of investment-grade fixed income securities. Investments in fixed income securities represent 88.7 percent of the entire financial investment portfolio in 2019 (88.5 percent in 2018). The market price of the securities may fluctuate as a result of changes in interest rates (interest-rate risk), the exposure to which is mitigated by searching for an adequate matching level between assets and liabilities. The market price of fixed income securities may also fluctuate

due to changes in the perception of the solvency margin of issuers (spread risk), the treatment of which is explained in the section on Credit Risk.

Investments in equity instruments and mutual funds have a limited weight in the portfolio, accounting for approximately 10.2 percent of total financial investments in 2019 (9.1 percent in 2018).

During 2019, various markets have continued to see historically low interest rates, a trend that is expected to carry on into 2020. This influences consumer behavior and may affect the savings business in particular.

Revenues from MAPFRE's Life insurance and asset management operations are directly related to the value of the assets managed (whether fixed income or equities), which means that a fall in markets could have a negative impact on these revenues.

Exchange rate risk

Changes in the value of the euro affect the value of the Group's assets and liabilities, and, therefore, its equity, operating results and cash flows. The currency conversion differences recorded in the shareholders' equity attributable to the controlling Company implied the positive recognition of 35.7 million euros in 2019 (a negative recognition of 102.8 million euros in 2018).

While most governments of the countries in which MAPFRE operates have not imposed bans on repatriating dividends or capital divestment, restrictive exchange control policies may be established in the future.

Turning to technical provisions for operations abroad, the Group generally applies a policy of investing in assets denominated in the same currency as the commitments acquired by the insurer, thereby mitigating the exposure to exchange rate risk.

Credit risk

Returns on investments are also sensitive to changes in the general economic conditions, including variations in the general credit rating of debt security issuers. Accordingly, the value of a fixed income instrument may be reduced by changes to the credit rating or insolvency of the issuer. There are similar risks in exposures to insurance, reinsurance and banking counterparties.

Exposure to credit risks is mitigated through a policy based on the prudent selection of security issuers and counterparties on the basis of their solvency; seeking i) an elevated degree of geographic correspondence between issuers of assets and the commitments assumed; ii) maintenance of an appropriate level of diversification; and iii) securing, if necessary, guarantees, collateral and other additional coverages.

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The Credit Risk Management Policy sets limits by issuer in accordance with the risk profile of the counterparty or the investment instrument, as well as exposure limits in relation to the counterparty's rating.

OPERATIONAL RISKS

Regulatory risk

The Group works in a complex environment under increasing regulatory pressure, not only in the insurance sector, but also in matters of technology, corporate governance or corporate criminal responsibility, among others.

Insurance companies are subject to special laws and regulations in the countries where they operate, and various local authorities are responsible for ensuring compliance therewith. Taking into account the financial or economic conditions, some of these authorities are considering strengthening the regulatory requirements with the purpose of preventing future crises or ensuring the stability of the entities under their supervision.

Legislative changes can (i) involve a risk if the Group is unable to adapt to them or (ii) affect the operations of the Group to the extent that the supervisory authorities have broad administrative control over various aspects of the insurance business. This control may affect premium amounts, marketing and sales practices, the distribution of profits among policyholders and shareholders, advertising, license agreements, policy models, solvency, capital requirements, and permitted investments. Changes in taxation may affect the benefits of certain products marketed by the company or its subsidiaries that currently enjoy favorable tax treatment.

Operational risk

Operational risk is inherent in the execution of any activity, and its occurrence may give rise to a loss and/or an adverse impact on results. Among the main risks are cyber risks, the impact of which can affect both the operation of IT equipment as well as the private data stored on it.

MAPFRE has systems in place to monitor and control the risk of potential losses due to failures or unsuitability of the internal processes, people and/or systems. While the result of the evaluations and analyses carried out in the 2019 fiscal year does not show any process to be at a critical level, the possibility of suffering operational losses cannot be ruled out, given how hard it is to forecast and quantify this type of risk.

The English version is a translation of the original in information purposes only. In case of discrepancy, the Spanish version shall preval.

Código seguro de verificación (CSV): xIvfjCSHJswnKZUFv5fe COPIA ELECTRÓNICA Esta es una copia auténtica imprimible de un documento electrónico archivado por la CNMV, según el artículo 27.3 c) de la Ley 39/2015, de 2 de octubre. Su autenticidad puede ser contrastada a través de la siguiente dirección: https://sede.cnmv.libreAcceso/CSV.aspx

ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) RISKS

Proper monitoring of these aspects provides the organization with additional information about these potential risks as well as a clearer insight into social movements and transformations and the expectations of its stakeholders. In this context, MAPFRE's business model and strategy are an example of how the company faces the global challenges regarding sustainability; how it manages ESG risks; and how it innovates in developing insurance products and solutions for the benefit of its clients and the community.

The management of ESG risks helps in decision-making on important issues such as underwriting, investment, innovation in products and services, sustainability, the environment and reputation management, the latter being essential to gaining the trust of our stakeholders. Consequently, ESG risks are naturally incorporated into the management and control processes implemented by the Group.

Climate change is part of the MAPFRE sustainability strategy. As a global insurance company, MAPFRE is participating in the commitment to contribute to defining a standard of technical and financial action for the entire sector that will help the insurance industry to manage the risks and opportunities of the transition toward a low-carbon economy, and to reduce the impact of climate change for society as a whole. The increase in frequency and severity of natural disasters and MAPFRE's presence in countries with a high exposure to this risk can impact the Group's results. To forecast these events and minimize their economic impact, MAPFRE companies are working on a variety of aspects: i) efficient control of exposure to catastrophic risks; ii) ensuring proper loss assessment; and iii) coordinating a sufficient response and service to the affected clients.

ADDITIONAL INFORMATION

Note 7, "Risk Management," of the Consolidated Annual Report includes detailed information about the different types of risk that affect the Group.

SIGNIFICANT EVENTS AFTER THE FISCAL YEAR-END

No significant events materialized after the year-end.

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INFORMATION ON EXPECTED PERFORMANCE

OUTLOOK

The world economy in general remains stable, although with a rather modest performance. For 2020, average global growth in the range of 3 percent is expected, possibly accelerating during subsequent quarters, converging toward the average of the second half of the last decade, around the global potential. Recession is ruled out at the moment unless as-yet unforeseen risks emerge, provoking an adjustment in a systemic economy.

Within the projected growth scenario, a significant contribution is not expected from advanced countries, which will slow down and veer away from their potential, growing 2 percent or less on average during the next two years. Emerging economies, meanwhile, are set to make more significant contributions to global activity, growing steadily by about 4.5% on average over the coming years thanks to more benign financial conditions, improving terms of trade for commodity-producing countries, a recovery for some important economies (Brazil, Mexico and Turkey), as well as a likely easing of sociopolitical issues that are triggering uncertainty and disruption in several emerging economies (Andean countries, Hong Kong, etc.).

The cyclical moment is the stabilization of activity at low levels, which has forced a rethink of the design and implementation of public policy. In the United States, GDP growth looks set to stabilize at below 2 percent, based primarily on domestic demand, thanks to Federal Reserve (Fed) support. The Economic and Monetary Union (EMU) has re-registered a stubborn recession, which has forced the extension of a lax monetary position, while the need to complement it with significant fiscal impulses is also discussed.

China maintains activity levels with the inertia of the past, and despite the fact that high-frequency data show some loss of dynamism, growth (in official data) remains at high levels.

In emerging markets, although many of the vulnerabilities are softened with the about turn made in American monetary policy, their dependence on external savings makes them very sensitive to external corrections, and their financial woes run the risk of spreading across the region. As such, while the cyclical moment will be more dynamic, its fragility will also be more pronounced.

A recession would be the alternative scenario, which needs to be considered, in that it would accelerate geopolitical tendencies (such as the globalization backlash and growing current social discontent) that are again a sign of the times in the third decade of this century.

The expected risks are essentially the same as last year, although in some ways exacerbated by the most recent events:

Eurozone governance: the European challenge continues to depend on greater internal cohesion and the search for broad consensus with which to face the sum of geopolitical risks facing the eurozone. The new configuration of the European institutions (European Commission, Council of Europe, European Central Bank, etc.) eliminates doubts about the future institutional path of the Union.
The risk deriving from economic policy in the United States: with the reduction of 75 bps in the benchmark rate, the Federal Reserve considers the risk of recession has waned sufficiently, while consensus among members of the Federal Open Market Committee (FOMC) means stronger visibility for the rate path throughout 2020 at least.
The macro-financial adjustment in China: The Chinese economic model continues to shift toward internal equilibrium supported by domestic sources of growth and external equilibrium driven by flexibilization and the opening up of the country's economy. The ability to offer stimulus via economic policy could become pro-cyclical and prove inadequate in the face of high debt levels accumulated by the country and liquidity transmission mechanisms that remain insufficient.
Debt: the vulnerability associated with global debt levels remains on the rise, with debt reaching over 250 trillion dollars (220% GDP. Prolonged low interest rates have buoyed risk-taking and debt accumulation while problems in repo markets and indications of illiquidity in certain sectors and products are beginning to trigger warning signs and caution with regard to credit ratings, which have deteriorated further.
Geopolitics: although the outcome of the UK election and progress in trade negotiations between China and the US have eased the geopolitical tensions that had been shaping the international landscape, global growth remains

threatened by political uncertainty, rising protectionist sentiment and instability in the Persian gulf.

If some of the risks were activated, and these gave rise to confidence and/or supply shocks (on the liquidity, productive or raw material side), the foreseeable recovery could be transformed into a recession, although this hypothesis does not constitute the central scenario.

STRATEGIC PLANNING

At MAPFRE, we are transforming ourselves to grow profitably. Digitalization and innovation are key components of this evolution. Transformation will be ever present in all that we do, acting as a veritable driver across the entire company. Our strategy is based on three pillars:

The first year of the Strategic Plan 2019-2021 "Transforming ourselves for growth and improved profitability" was a year marked by environmental catastrophes (typhoons such as Faxai and Habbis are some examples of catastrophes that have had a high impact on the attributable result of MAPFRE) and by the political, economic and social volatility and uncertainty in the different markets where MAPFRE operates. In light of these circumstances, the public aspirational objectives for the period 2019-2021 have been adjusted, focusing on six of them and aligning them to the reality of the markets, without foregoing the ambition that has always characterized MAPFRE

The main developments in the aspirational objectives and initiatives that drive each of the plan's pillars are:

1. Profitable growth

Objectives from a profitable growth perspective:

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At the close of 2019, the Group's ROE stood at 8.0 percent (without goodwill adjustments).
With regard to the objective of achieving sustainable growth, revenue at the close of the year was 28.47 billion euros.
Digital business revenue reached 1.33 billion euros, growing 16.7 percent compared to 2018.
On the objective of profitably boosting the Life business, at the end of 2019 the growth in Life Protection premiums at constant value was 9.2 percent.

Client orientation 2.

The objectives in this pillar are:

In measuring the quality perceived by the client, the number of markets in which MAPFRE has an NPS greater than its competitors at the close of the year was 86.3 percent. In this first year, various activities have been carried out to improve the client experience, which it is hoped will positively impact the indicator.
In order to innovate in products and services applying solutions originating in our MAPFRE Open Innovation platform, at the close of 2019, products and services have been developed that have reached a little over 244,700 clients.

3. Excellence in technical and operational management

The objectives in this pillar are:

With regard to the objective of rigorously managing risks, at the close of 2019, the Non-Life combined ratio stood at 97.6 percent.
Concerning operational management, work continued on carrying out activities to improve efficiency and automation during key client touchpoints. At the close of 2019, the increase in automated transactions was 5.3 million, reaching a total of 18.7 million transactions.

4. Culture and talent

The objectives in this pillar are:

MAPFRE continues to strive to increase the commitment and development of employees and collaborators. At the close of 2019, the culture and talent index stood at 80.8 percent.

Código seguro de verificación (CSV): xIvfjCSHJswnKZUFv5fe	COPIA ELECTRONICA
Esta es una copia auténtica impimble de un documento electrónico archivado por la artículo 27.3 c) de la Ley 39/2015, de 2 de octubre. Su
autenticidad puede ser contrastada a través de la siquiente dirección: https://sede.cnmv/l.ibreAcceso/CSV.aspx

In our efforts to boost gender equality in the Group, the percentage of new positions of responsibility occupied by women was 48.3 percent at the close of the half-year.
As another objective, the company has undertaken to position MAPFRE as a benchmark in sustainability. The Board of Directors of MAPFRE S.A. has approved the lines of action, projects and objectives of the Global Sustainability Plan 2019-2021.
With regard to diversity, the percentage of the workforce with a disability at the close of 2019 was 2.9 percent.

Future prospects for the Strategic Plan 2019-2021

The fiscal year 2019 has been marked by the impact of catastrophic events and social uncertainty in the different markets in which MAPFRE operates. Therefore, it has been necessary to adjust the aspirational public objectives for the 2019-2021 period, which are to be presented at the Annual General Meeting.

R&D+i ACTIVITIES

INNOVATION

MAPFRE has a long history of being an innovative company, and innovation is one of its main levers in driving organic growth and projecting its strategic horizon, constantly generating differential value propositions for clients from a transversal and integrated vision that allows it to respond to the challenges the business faces.

In 2018, the MAPFRE innovation model was designed around the proven internal strategic capabilities and digitalization of models and solutions for clients, but also organizing an open relationship model that connects external agents and the innovation ecosystem (technology-based startups and other market players who are able to offer disruptive solutions at some link in the insurance value chain -Insurtechs). This model is called MAPFRE Open Innovation.

During 2019, firm steps were been taken to accelerate the transformation at MAPFRE and strengthen the leadership position, adapting faster and moving toward new business models and innovative solutions that arise from the digital and technological changes that are being experienced, in order to offer the best solutions and services to clients.

Of the relevant actions carried out during the fiscal year, the following are of note:

203

· Launch of two insur_space calls, with the participation of different startups in the two program modules available: Acceleration and Adoption.
· MAPFRE's participation as an anchor investor in the venture capital fund "Alma Mundi Insurtech Fund, FCRE," exclusively focused on the insurtech space and which has taken stakes in seven startups in the sector.
· Consolidation of #innova, MAPFRE's intrapreneurship program.

DIGITAL TRANSFORMATION

During 2019, work continued on digitalization in countries where MAPFRE operates with a clear objective, responding quickly to clients (consumer clients, distributor clients, providers and internal clients).

More than 130 projects have been undertaken, with more than 445 digital assets deployed and more than 80 million digital transactions completed in major markets by the end of 2019, resulting in annual growth above the established target.

All of this effort has made it possible to make significant achievements in the digitalization of client relationships and operations:

" For consumer clients, attraction has improved, increasing the number of quotes generated in the countries (Spain, Brazil, USA, Peru and Turkey) by more than 14.4 percent, thanks to the smart pricing calculator strategy.

In addition, new processes have continued to be promoted and made available to clients on both web and mobile self-direction platforms, which saw usage rise by more than 32 percent.

" In the case of distributor clients, the commitment to provide them with mobility solutions to facilitate and improve overall relations and management was maintained. New implementations of corporate CRM have been deployed, totaling 17 implementations.

In addition, and given the importance of intermediaries for MAPFRE, a new operational model and self-direction platform for intermediaries was developed during 2019 and is expected to be completed in 2020, with a view to being rolled out in different countries.

· With regard to service providers, thanks to solutions that facilitate the automatic processing and assignment of services in Automobiles (Digital Dispatch), more than 80 percent of the services requested from providers were managed through this platform. In the case of Homeowners, over 86 percent of repairs in Spain were managed via mobility solutions made available to repair workers, which saved them over 270,000 hours in the last year.

· With respect to internal clients or employees, the Digital Challenge corporate strategic initiative continued, which is driving knowledge management and collaborative, flexible and agile work through the use of collaborative tools and agile work methodologies. This new working model has already been deployed in major countries. This process of transformation involves assimilating new technologies, but, above all, understanding that the key to success lies in people and their transformation.
· Finally, significant advances were made in the digitalization of operations, with over 17 million automated transactions completed in 2019.

In addition, MAPFRE has made significant progress in providing an advanced analytics solution that enables more sophisticated models to be built that can help improve the company's internal processes and those related to client relationships. This solution has already been implemented in Spain and is in the process of being deployed in Brazil and the USA.

In the field of Artificial Intelligence, additional models for predictive valuation of vehicle damages have been evaluated and chat bot assistants have seen further development, with the aim of improving customer service agility and progressing further along the road to operational excellence.

MAPFRE continues to transform and digitize itself so as to provide an agile response to client needs.

QUALITY

To evaluate the quality perceived by clients, the MAPFRE Quality Observatory applies a global client experience measurement model, through client surveys in all countries where the Group operates, covering lines of insurance and assistance services on a twice-yearly basis. This is done through the analysis of the Net Promoter Score (NPS®) that evaluates client satisfaction and critical client touchpoints, and recommendations are drawn up regarding the main areas that could be improved.

In 2019, the eighth and ninth NPS® measurement waves were carried out, involving a representative sample of MAPFRE's portfolios. These waves, with over 140,000 respondents, cover 81.9 percent of the total private Non-Life premiums of the Group.

In addition, once a year, the Observatory measures the client experience level of MAPFRE's major competitors in each country/line of business, analyzing approximately 120 companies around the world. This analysis reveals that the objective set for 2019 was met, namely, to obtain an NPS® from the MAPFRE's clients greater than the average NPS of competitors analyzed for in excess of 71 percent of the premium volume measured.

To complement these measurements of relational NPS®, the Quality Observatory defined a Global Model for transactional NPS®, which allows MAPFRE to find out, in real time, a client's perception after interacting with the company. This model is currently in place in Brazil and Spain.

Likewise, in 2019 the Quality Observatory carried out the second measurement on the experience of internal clients (iNPS®) and on the cedents and brokers for the reinsurance services provided by MAPFRE RE.

ACQUISITION AND DISPOSAL OF TREASURY STOCK

MAPFRE SA treasury stock transactions have been adjusted to reflect established the regulations in force, the relevant agreements adopted at the Annual General Meeting, and the current 2019 MAPFRE Group Treasury Stock Policy, which regulates the handling of transactions which involve the company's own shares.

In 2019, a total of 7,897,336 treasury stocks were purchased in the market and 1,889,387 shares were delivered to executives of subsidiaries as part of their variable remuneration, representing an increase of 6,057,949 treasury stocks, equivalent to 0.1967 percent of capital and amounting to 15,585,821.85 euros. In the previous fiscal year, 2,079,216 treasury stocks were sold, representing 0.0675 percent of capital and amounting to 4,106,350.17 euros. At December 31, 2019 and 2018 the total treasury stock balance was 30,489,839 and 24,431,890, respectively, representing 0.9901 and 0.7934 percent of the capital, amounting to 63,835,547.24 and 48,249,725.39 euros, respectively.

The treasury stock transactions referred have a legitimate purpose, and always fully respect the recommendations on treasury stock discretionary transactions issued by the Spanish National Securities and Exchange Commission (the CNMV), "legitimate purpose" being understood to mean transactions including, but not limited to, the following:

Favoring trading liquidity and regularity in the purchase of MAPFRE shares.
Allowing MAPFRE to access the securities it requires in order to meet potential obligations to deliver treasury stock, for example as a result of shareholder, executive or employee remuneration or loyalty schemes, or issues of corporate stock or operations.

In all cases, treasury stock transactions have always been executed under conditions that ensure neutrality in the price setting of MAPFRE shares in the market and complete transparency in relationships with market supervisors and governing bodies.

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Furthermore, these transactions have never been carried out on the basis of privileged information.

Following the publication on January 13, 2020 of the communiqué from the National Securities and Exchange Commission, overruling the criteria on discretionary treasury stock operations of 2013, the Board of Directors of the Company, at its meeting of February 11, 2020, agreed to cancel the Company's treasury stock policy. By virtue of the foregoing, hereinafter, transactions for purchase and sale of MAPFRE SA shares, where appropriate, will be executed in accordance with the provisions of the Market Abuse Regulation and Circular 1/2017 of the National Securities and Exchange Commission.

OTHER RELEVANT INFORMATION

THE MAPFRE SHARE

The table below shows the key information relating to MAPFRE shares at the 2019 fiscal year-end:

Number of shares outstanding	3,079,553,273 fully underwritten and paid up
Face value of each share	0.1 euros
Share class	Common, represented by book entries. All outstanding shares
	carry identical voting and dividend rights
Stock exchange listings	Madrid and Barcelona Stock Exchanges (continuous market)
Stock market index	IBEX 35; IBEX Top Dividend ।
membership	- STOXX Europe 600 Insurance; EURO STOXX Insurance
	MSCI Spain -----
	- FTSE All-World; FTSE Developed Europe;
	FTSE4Good and FTSE4Good IBEX®
	DISI World -----
	- Ethibel Sustainability Index- Excellence Europe®
ISIN code	ES0124244E34

In 2019 MAPFRE S.A. shares traded for 253 days on the continuous market with a frequency index of 100 percent. According to data published by the Spanish Stock Exchanges and Markets (BME), an average of 5,128,636 shares were traded daily on this platform compared to 5,515,638 in 2018, a decrease of 7.02 percent. The effective

⁵ Indices that measure the outcome of a company's actions to uphold and support sustainable development and human rights.

average daily transactions totaled 12.9 million euros, compared to 14.6 million euros in the previous year, a decrease of 11.4 percent.

At the end of 2019, four Spanish and international investment banks had "buy" recommendations for the Company's shares, compared to seven who held "hold" recommendations, while six had the stock on their "sell" lists.

VALUE AND RETURN

The share price performance is shown in the following table, compared to two key benchmark indices (the selective IBEX 35 and the sectorial STOXX Europe 600 Insurance indices):

	1 YEAR	3 YEARS	5 YEARS
MAPFRE	1.7%	-18.6%	-16.1%
STOXX Europe 600 Insurance	24.4%	19.7%	28.8%
IBEX 35	11.8%	2.1%	-7.1%

MAPFRE's earnings per share (EPS) during the same period are shown below:

	2019	2018	2017	2016	2015
EPS (euros)	0.20	0.17	0.23	0.25	0.23
INCREASE	14.4%	-24.5%	-9.7%	9.4%	-16.1%

The English version is a translation of the original in Spanish for information purposes only. In espanish version shall preval.

SHAREHOLDER STRUCTURE AND REMUNERATION

At 2019 fiscal year-end, Fundación MAPFRE held 67.7 percent of the Company's shares, excluding treasury stock, which represented 1 percent of the shareholding. Spanish institutional shareholders accounted for 3.8 percent and institutional shareholders in other countries accounted for 19.5 percent. The remaining 8 percent is for non-institutional shareholders.

The dividend policy establishes that shareholder remuneration must be linked to the Company's profits, solvency, liquidity and investment plans, and also aligned with the interests of all its shareholders. Among the objectives set for the three-year period 2019-2021 is adequate shareholder remuneration.

On December 23, 2019, the interim dividend against the 2019 results was paid, amounting to 0.0606 euros gross per share, after applying the amount corresponding to treasury stock in proportion to the remaining shares. The total dividend paid out in the year was 0.145 euros per share, giving a total remuneration of 446.5 million euros.

The final dividend for fiscal year 2019 to be proposed at the Annual General Meeting is a dividend of 0.085 euros per share (before tax). Consequently, the total dividend against the 2019 results amounts to 0.145 euros per share before tax, representing a payout ratio of 73.3 percent.

Dividend payments paid in the fiscal year and the dividend yield, calculated on an average share price basis, are indicated below:

	2019	2018	2017	2016	2015
DIVIDEND PER SHARE (euros)	0.145	0.145	0.145	0.13	0.14
DIVIDEND YIELD	5.7%	5.5%	4.9%	5.8%	4.9%

CREDIT RATING MANAGEMENT

In January 2019, Fitch confirmed the credit rating of MAPFRE S.A. and raised its subsidiaries' financial strength rating. These same ratified in September.

In November, S&P raised the rating of MAPFRE S.A. credit issuer from "BBB" to "A-." It also raised MAPFRE RE's financial strength rating from "A" to "A+." Both ratings have a stable outlook.

In August, Moody's ratified MAPFRE ASISTENCIA's rating as an "A2" with stable outlook. In October, A.M. Best reaffirmed the financial strength credit ratings of MAPFRE RE and MAPFRE ESPAÑA as "A" with stable outlook.

Furthermore, following the total spin-off of GLOBAL RISKS as a result of the business reorganization of the large industrial and commercial risks insurance business during the first half of the year, the S&P, Fitch, Moody's and A.M. Best agencies withdrew the credit rating of MAPFRE GLOBAL RISKS.

The current status of credit ratings for the companies headquartered in Spain is provided below, with positive updates during the 2019 fiscal year highlighted.

		AND Fitch and the	Moody's Moody state	Ja A.M. Best
MAPFRE S.A. - Debt issuer	A- (Stable)	A- (Stable)	-
MAPFRE S.A. - Senior debt	A-	BBB+
MAPFRE S.A. - Subordinate debt	BBB	888-

Fortaleza Financiera
- MAPFRE RE	A+ (Stable)	A+ (Stable)		A (Stable)
- MAPFRE ESPAÑA		A+ (Stable)		A (Stable)
- MAPFRE VIDA		A+ (Stable)
- MAPFRE ASISTENCIA		A+ (Stable)	A2 (Stable)	œ

In May 2019, A.M. Best declared the financial strength rating of the main MAPFRE U.S.A. Corp. members as "A" with stable outlook.

In August 2019, Fitch raised the financial strength rating of MAPFRE SIGORTA to "AA+ (tur)" from "AA (tur)" with stable outlook.

In December 2019, A.M. Best confirmed MAPFRE MEXICO's rating as "A" with stable outlook.

The current situation of the credit ratings of the main Group companies domiciled outside Spain is as follows, with the positive updates during the 2019 fiscal year highlighted in green.

Fitch
MAPFRE SIGORTA A S	Turkey	Financial strength	AA+ Itur!	Stable
MAPFRE SEGUROS GENERALES DE COLOMBIA	Colombia	Financial strength	AA (col)	Stable
A.M. Hest
MAPFRE U.S.A. Group	1152	Financial strength	A	Stable
MAPFRE PRAICO	Puerto Rico	Financial strength	2	Stekle
MAPFRE MÉXICO	Mexico	Financial strength	ಲ್ಲಿ	Stable

TRANSPARENCY PLAN

In 2019, work began to redesign the corporate website, simplifying its structure and combining the corporate information with other informative content. This will bring the actions, strategy and attributes for which MAPFRE wants to be known even closer to all stakeholders.

Meetings, discussions and interventions by directors have also continued to be broadcast live across the different channels and social networks (Twitter, Facebook, YouTube, etc.) in order to further raise awareness.

All precontractual documents (Prior Information Notices and Product Information Documents (PIDs) for Non-Life insurance), as well as the general product terms and conditions, are managed via the Document Manager, which automatically updates the mapfre.es website and retains the previous versions, although not visibly.

The mapfre.es website has a section named "Information of interest," which has been redesigned so that the precontractual documents are presented by product. This provides clients with the location of the documents and the client will shortly receive a personalized electronic notification with a link to the website.

In addition, the Document Manager is also operational for large agreements, bancassurance operators and brokers so that they can connect via the website and have the most up-to-date information on their systems at all times.

In Life, work has begun to replace paper versions of the Prior Information Notice and the Key Information Documents (KID) with electronic notifications, or specific mention in the suitability test. MAPFRE VIDA has also begun using the Document Manager to manage various document versions and to update them on the website.

The corporate Intranet is the internal communication channel for employees, where there are new spaces available for each of the Group's companies. There is a space called "Organization chart and Appointments," where employees can view MAPFRE's organization chart and the most senior representatives, the governing bodies, and stay up to date on any appointments that take place in the companies and countries.

Throughout 2019, the People Space on the Intranet was continuously developed. This space incorporates both global and local content and news on people management that is of interest to employees, and the new design has involved a complete change in the structure, content and form in which the information is presented to employees, as well as the browser, which is now simpler and more intuitive.

The Intranet also has specific spaces for each of the companies and areas of the business that are used to share knowledge: news, documents, best practices, audiovisual material, links, etc.

This year, the number of channels through which information is disseminated to employees has increased, such as the People app, a tool that 5,000 employees are

already using and which aims to make life easier for the people who work at MAPFRE via a series of features.

Throughout 2019, the support communities have continued to grow on the Intranet. There are 452 active communities in which 6,310 employees participate. At the end of the year, all employees were given access to a knowledge repository known as eureka, available in all three corporate languages, which already has 510 knowledge items stored on it. Employees can look up documents, news articles and best practices using the search engine and also contribute anything they deem worth sharing.

A Strategy space was also created and a very comprehensive campaign has been launched so that all employees are familiar with the objectives, global goals, change agenda and strategic initiatives.

There is also a corporate magazine (The World of MAPFRE) distributed quarterly around the world that keeps the entire team informed regarding the latest developments and the current status of the company. It is published in print and digital format.

Through its social network profiles on Facebook, Instagram, Twitter, LinkedIn and YouTube, MAPFRE communicates and interacts with its employees.

In terms of attracting and managing talent, 2019 saw the rollout of SuccessFactors, a new global selection and mobility system, in the majority of the group's companies, which has led to improvements in this process. It is an automated process whereby all participants are duly notified of any progress. MAPFRE received a prize at the SAP Quality Awards in recognition of the quality and innovation of the design and rollout of this tool.

As part of the Digital Challenge strategic initiative, momentum is being given to new ways of working with technological tools used to work in an open, transparent and collaborative way.

A new 360° feedback model has been rolled out worldwide for all employees, with continuous feedback on objectives, activities and behavior, not only between supervisors and collaborators, but also between internal peers and clients.

Plans have executed to publicly recognize employees for their work and achievements in relation to the new behavior and habits of the organization (be agile, collaborate and innovate), as well as other specific plans.

The learning management tool has already been defined and implemented at a global level, which is used to manage on-site and online training for every employee in the

212

world. Furthermore, it helps promote the "self-learning" feature, a space where each employee can access MAPFRE's catalog of training content.

With a view to ensuring ongoing comprehensive monitoring of the processes that impact the commitment and development of employees, in 2019 an internal indicator was defined and implemented called Culture and Talent. This indicator measures employee satisfaction via an EMPLOYEE SATISFACTION INDEX (ESI) survey, which assesses ten specific aspects, the turnover and seniority of employees, in addition to functional mobility, the percentage of employees with assigned development plans and the internal promotion rate for positions of responsibility.

In 2019, a new model was introduced to measure the employee experience, which facilitates a more in-depth analysis of the employee experience on a continuous basis. This model is based on three measurement types:

· Relational eNPS®: measures the probability that employees would recommend MAPFRE as a company to work for.
· Employee life cycle: an analysis model of the different moments in the employee's life cycle has been designed, and will be launched in 2020. This model includes using focus groups and questionnaires to measures the experience of the employees in their interaction in each of the different moments of the life cycle: selection, onboarding, performance evaluation, recognition, mobility and change, among others.
Human resources Perceived Quality Index: a perceived quality survey that analyzes how employees perceive the quality of service provided by the Human Resources areas. The result was 7.2 points on a scale of 1 to 10.

<-- PDF CHUNK SEPARATOR -->

ECONOMIC CONTRIBUTION TO SOCIETY

Insurance activities generate direct economic value through the constant flow of transactions (premium payments, benefit payments, investment management, etc.), which have an effect on the different aspects related to the economic and social development of the environment in which the company operates.

Of the consolidated revenues of 28.47 billion euros generated in the fiscal year (26.59 billion euros in 2018), MAPFRE has made economic contributions to society in general via multiples payment types, which are detailed below.

Item	2019	2018	% 19/18
Benefits paid (1)	16,120.2	17,083.6	-5.6%
Payments to providers (2)	7,761.6	5,588.5	38.9%
Wages and salaries, and other (3)	1,504.4	1,491.9	0.8%
Activity subtotal	25,386.2	24,164.0	5.1%
Dividends (4)	844.1	863.1	-2.2%
Shareholders subtotal	844.1	863.1	-2.2%
Net income tax payment	430.8	529.3	-18.6%
Social security	257.0	237.2	8.3%
Public administrations subtotal	687.8	766.5	-10.3%
Interest paid	69.8	57.3	21.8%
Financing subtotal	69.8	57.3	21.8%
Total	26,987.8	25,850.9	4.4%

Figures in million euros

(1) Benefits paid and related expenses of direct insurance and accepted reinsurance.
(2)
Wages and salaries amounted to 1,251.1 million euros in 2019 (1,257.8 million euros in 2018).
(4)

Furthermore, in its capacity as an insurer, the company makes commitments to its insured in exchange for the management of resources that are invested in assets, particularly financial assets.

The following table shows information about the company as an institutional investor at the close of the last two fiscal years.

214

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

ltem	2019	2018	% 19/18
UNDER THIRD-PARTY FUNDS MANAGEMENT (5)	40,663.0	37,747.6	7.7
TOTAL INVESTMENTS	47,363.4	43,977.0	17
Financial investments	44,995.9	41,246.0	9.1
Fixed income	39,443.7	36,517.5	8.0
- Issued by governments	30,088.8	27,595.9	9.0
- Other fixed income securities	9,354.9	8,921.6	4.9
Other financial investments	5,552.2	4,728.5	17.4
Real estate investments (6)	1,323.4	1,243.6	6.4
Other investments	1,044.1	1,487.4	-29.8

Figures in million euros

(5) Technical provisions for Life, pension funds, mutual funds and managed portfolios, before shadow accounting adjustments.
(6) Excluding real estate for own use.

PROVIDER PAYMENT TERMS

Details of the payments made by the Group's fully consolidated Spanish companies to providers in the fiscal years 2019 and 2018 are shown below.

	Days
tem	2019	2018
Average provider payment period	5.44	6.66
Ratio of paid operations	5.24	6.49
Ratio of operations pending payment	24.76	19.43

	Figures in million euros
Item	2019	2018
Total payments made	1,989.00	1,693.75
Total pending payments exceeding the maximum statutory term	20.43	21.60

OTHER INFORMATION

The content corresponding to the Non-Financial Information Statement, which is reflected in the MAPFRE Integrated Report, is part of this Consolidated Management 215

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

Report and meets the reporting requirements established by Law 11/2018 of December 28.

The following table provides an overview of the content in the Non-Financial Information Statement mentioned above:

	NÜNTIVATUAL INTVAMAA TÜÜ STATEMELE	GRI reporting standards
	Contents of Law 11/2018	(See GRI Contents Index in Section 7 of the MAPFRE Integrated Report 2019]
	General topics
	A brief description of the group's business model	GRI 102-2
		GRI 102-7
		GRI 102-3
Business model	Markets served	GRI 102-4
		GRI 102-6
	Organizational objectives and strategies	GRI 102-14
		GRI 102-14
	Main factors and trends that may affect their future evolution	GRI 102-15
General	Reporting framework	GRI 102-54
	Description of the policies that apply	GRI 103-2
Management	The results of these policies	GRI 103-2
approach	The main risks related to these issues linked to the activities of	GRI 102-15
	the group Issues relating to the environment
	Current and foreseeable effects of the company's activities on	GRI 102-15
		GRI 103-2
Environmental	the environment and, where appropriate, health and safety Environmental assessment or certification procedures	GRI 103-2
		GRI 103-2
management	Resources devoted to the prevention of environmental risks	GRI 102-11
	Application of the precautionary principle	GRI 103-2
	Quantity of provisions and guarantees for environmental risks
Pollution	Measures to prevent, reduce or repair carbon emissions	GRI 103-2
	(also includes noise and light pollution)	GRI 103-2
	Prevention, recycling, reuse, other forms of waste recovery and	GRI 306-1
Circular economy and	disposal measures	GRI 306-2
waste prevention		GRI 103-2
and management	Actions to combat food waste
		GRI 306-2
Sustainable use of resources	Water consumption and water supply in accordance with local limitations Consumption of raw materials and measures taken to improve the efficiency of their use	GRI 303-5
		(Version GRI 2018)
		GRI 301-1
		GRI 301-2
		GRI 301-3
	Direct and indirect consumption of energy	GRI 302-1
		GRI 302-3
	Measures taken to improve energy efficiency	GRI 302-4
	Use of renewable energies	GRI 302-1

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

CNMV Oficina: ROD MADRID Registro de Entrada Nº: 2020018771 Fecha de registro: 2020-02-12 01:18:30

		GRI 305-1
	Significant elements of greenhouse gas emissions generated as a	GRI 305-2
	result of the company's activities	GRI 305-3
		GRI 305-4
Climate change	Measures taken to adapt to the consequences of climate change	GRI 201-2
	Voluntary medium- and long-term reduction targets for reducing
	greenhouse gas emissions and the means implemented for this	GRI 305-5
	purpose
Protection of	Measures taken to preserve or restore biodiversity	GRI 304-3
biodiversity	Impacts caused by activities or operations in protected areas	GRI 304-1
		GRI 304-2
	Issues relating to society and employees Total number and distribution of employees by country, gender,	GRI 102-8
	age and professional category	GRI 405-1
	Total number and distribution of contract of employment
	modalities	GRI 102-8
	Annual average by type of contract (permanent, temporary, and
	partial), gender, age, and professional classification	GRI 102-9
	Number of layoffs by gender, age and professional categories	GRI 103-2
		GRI 103-2
	Salary gap	GRI 405-2
Employment	Average remuneration and its evolution disaggregated by gender,	GRI 103-2
	age and professional classification or equal value	GRI 405-2
	Average remuneration of board directors and executives,
	including	GRI 103-2
	variable remuneration, travel, subsistence and accommodation	GRI 405-2
	allowances, compensation, payment to long-term savings
	schemes and any other categories broken down by gender
	Implementation of work disconnection policies	GRI 103-2
	Employees with disabilities	GRI 405-1
	Organization of working time	GRI 103-2 GRI 403-9
Work organization	Number of hours of absenteeism	(Version GRI 2018)
	Measures aimed at facilitating a work-life balance	GRI 401-3
	and encouraging both parents to adopt such measures
		GRI 403-1
		GRI 403-2 GRI 403-3
	Occupational health and safety conditions	GRI 403-7
		(Version GRI 2018)
Health		GRI 403-9
and safety	Accidents at work, in particular their frequency and severity,	GRI 403-10
	broken down by gender	(Version GRI 2018)
		GRI 403-9
	Occupational diseases, broken down by gender	GRI 403-10
		(Version GRI 2018)
Social relations	Organization of social dialog, including procedures for informing,	GRI 103-2
	consulting and negotiating with personnel
	Percentage of employees covered by collective bargaining agreements by country	GRI 102-41
	The balance of collective agreements, particularly in the field of	GRI 403-4
	health and safety at work	(Version GRI 2018)
		GRI 103-2
I raining	Policies implemented in the field of training	GRI 404-2
	Total number of training hours per professional category	GRI 404-1
Accessibility a marka ka	Universal accessibility of people with disabilities	GRI 103-2

Measures taken to promote equal treatment and equal	GRI 103-2
opportunities for women and men Equality plans (Chapter III of Organic Law 3/2007, of March 22, for the effective equality of women and men)	GRI 103-2
Equality Measures adopted to promote employment, protocols against sexual and gender-based harassment, integration and universal accessibility of people with disabilities	GRI 103-2
Policy against all forms of discrimination and, where appropriate, the management of diversity	GRI 103-2
Information on respect for human rights
	GRI 102-16
Implementation of human rights due diligence procedures,	GRI 102-17
prevention of risks of human rights violations and, where	GRI 410-1
appropriate, measures to mitigate, manage and	GRI 412-1
redress possible abuses committed	GRI 412-2 ; 412-3
	GRI 103-2
Complaints about cases of human rights violations	GRI 406-1
Human Rights
Promotion of and compliance with the provisions of the
fundamental conventions of the International Labor Organization	GRI 103-2
relating to respect for freedom of association and the right to	GRI 407-1
collective bargaining, the elimination of discrimination in	GRI 408-1
employment and occupation, the elimination of forced or	GRI 409-1
compulsory labor, the effective abolition of child labor
Information on fighting corruption and bribery
	GRI 103-2
	GRI 102-16
Measures taken to prevent corruption and bribery	GR! 102-17
	GRI 205-2
	GRI 205-3
	GRI 103-2
Corruption and	GRI 102-16
bribery Measures to combat money laundering	GRI 102-17
	GRI 205-2
	GRI 205-3
	GRI 102-13
Contributions to foundations and non-profit entities	GRI 201-1
	GRI 415-1
Información sobre la sociedad
Impact of the company's activity on employment and local	GRI 103-2
development	GRI 203-2
	GRI 204-1
The company's Impact of the company's activity on local populations and the	GRI 411-1
commitments to territory	GRI 413-1
sustainable	GRI 413-2
Relationships maintained with local community actors and the development	GRI 102-43
modalities of dialog with them	GRI 413-1
Association or sponsorship actions	GRI 103-2 GRI 201-1
Inclusion of social, gender equality and environmental issues in the purchasing policy	GRI 103-2
	GRI 102-9
Consideration in relationships with suppliers and subcontractors Subcontracting and	GRI 308-1
of their social and environmental responsibility providers	GRI 414-1
	GRI 102-9
Supervision systems and audit and their results	GRI 308-2
	GRI 414-1

	GRI 103-2
Measures for the health and safety of consumers	GRI 416-1
	GRI 417-1
	GRI 103-2
	GRI 418-1
Profits obtained country-by-country	GRI 207-4 (2019)
Tax on profits paid	GRI 207-4 (2019)
Public subsidies received	GRI 201-4
	Complaints systems, grievances received and their resolution

CORPORATE GOVERNANCE REPORT

The company's Annual Corporate Governance Report, issued pursuant to the provisions of Article 49.4 of the Spanish Code of Commerce can be found below.

************

The English version is a transiation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

219

ANNUAL REPORT ON THE CORPORATE GOVERNANCE OF PUBLICLY TRADED

ISSUER'S IDENTITY DATA

End date of the reference fiscal year:	12/31/2019
Tax ID:	A08055741
Company Name: MAPFRE S.A.
Registered office: CARRETERA DE POZUELO A MAJADAHONDA, 52 EDIF.1 (MAJADAHONDA) MADRID

ANNUAL REPORT ON THE CORPORATE GOVERNANCE OF PUBLICLY TRADED COMPANIES

a. Ownership structure

A.1. Complete the following table on the company's share capital:

Date of last	Share capital (€)	Number of	Number of voting
modification		shares	rights
07/01/2011	307,955,327.30	3,079,553,273	3,079,553,273

Indicate if there are different kinds of shares with different rights associated with them:

[] Yes
[ v ] No

A.2. State the direct and indirect holders of substantial interests in the close of the fiscal year, excluding board directors:

Name or company name of the	% voting rights attributed to shares		% voting rights through financial instruments		% total voting rights
shareholder	Directs	elacines .	Direct	Indirect
FUNDACIÓN MAPFRE	0.00	67.71	0.00	0.00	67.71

Detail of indirect interests:

Name or company name of the indirect holder	Name or company name of the direct holder	% voting rights attributed to shares	% voting rights through financial instruments	% total voting rights
FUNDACIÓN MAPFRE	CARTERA MAPFRE, S.L. SINGLE-MEMBER COMPANY	67.60	0.00	67.60
FUNDACIÓN MAPFRE	FUNDACIÓN CANARIA MAPFRE GUANARTEME	0.11	0.00	0.11

State any significant modifications in the shareholding structure that have occurred during the fiscal year:

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ANNUAL REPORT ON THE CORPORATE GOVERNANCE OF PUBLICLY TRADED COMPANIES

A.3. Complete the following tables about the members of the Board of Directors of the company who have voting rights on company shares:

Name or company name of the board director	% voting rights attributed to shares		% voting rights through financial instruments		% total voting rights		% of voting rights that can be transferred through financial instruments
	Direct	Indirect	Direct	Indirect		Direct	Indirect
MR. ANTONIO HUERTAS MEJÍAS	0.01	0.00	0.00	0.00	0.01	0.00	0.00
MR. IGNACIO BAEZA GOMEZ	0.01	0.00	0.00	0.00	0.01	0.00	0.00
MS. CATALINA MIÑARRO BRUGAROLAS	0.00	0.00	0.00	0.00	0.00	0.00	0.00
MR. JOSÉ MANUEL INCHAUSTI PEREZ	0.00	0.00	0.00	0.00	0.00	0.00	0.00
MR. JOSÉ ANTONIO COLOMER GUIU	0.00	0.00	0.00	0.00	0.00	0.00	0.00
MS. ANA ISABEL FERNÁNDEZ ÁLVAREZ	0.00	0.00	0.00	0.00	0.00	0.00	0.00
MS. MARIA LETICIA DE FREITAS COSTA	0.00	0.00	0.00	0.00	0.00	0.00	0.00
MS. ROSA MARÍA GARCÍA GARCÍA	0.00	0.00	0.00	0.00	0.00	0.00	0.00
MR. ANTONIO GOMEZ CIRIA	0.00	0.00	0.00	0.00	0.00	0.00	0.00
MR. LUIS HERNANDO DE LARRAMENDI MARTINEZ	0.00	0.03	0.00	0.00	0.03	0.00	0.00
MR. FRANCISCO JOSE MARCO ORENES	0.00	0.00	0.00	0.00	0.00	0.00	0.00
MR. FERNANDO MATA VERDEJO	0.00	0.00	0.00	0.00	0.00	0.00	0.00
MR. ANTONIO MIGUEL- ROMERO DE OLANO	0.00	0.00	0.00	0.00	0.00	0.00	0.00
MS. MARÍA DEL PILAR PERALES VISCASILLAS	0.00	0.00	0.00	0.00	0.00	0.00	0.00
MR. ALFONSO REBUELTA BADÍAS	0.00	0.00	0.00	0.00	0.00	0.00	0.00

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ANNUAL REPORT ON THE CORPORATE GOVERNANCE OF PUBLICLY TRADED COMPANIES

Total % of voting rights held by the Board of Directors

Detail of indirect interests:

Name or company name of the board Offector	Name or company name of the direct holder	% voting rights attributed to shares	% voting rights through financial instruments	% total voting rights	% of voting rights that can be transferred through financial instruments
No data

A.A. Where applicable, list any family, commercial, contractual or corporate relationships between holders of significant interests, insofar as the company is aware of them, unless they are of little relevance or due to ordinary commercial traffic and exchange, excluding those reported in section A.6:

Related name or company name Type of relationship		Brief description
No data

A.5. Where applicable, list any family, commercial, contractual or corporate relationships between holders of significant interests, and the company and/or its group, unless they are of little relevance or due to ordinary commercial traffic and exchange:

Related name or company name Type of relationship	Brief description
No data

Dears

0.05

ANNUAL REPORT ON THE CORPORATE GOVERNANCE OF PUBLICLY TRADED COMPANIES

A.6. Describe the relationships, unless they relevant for both parties, that exist between the significant shareholders or those represented on the board and the board directors, or their representatives, in the case of legal company administrators.

Explain, as the case may be, how significant shareholders are represented. Specifically, those board directors who have been appointed on behalf of significant shareholders, those whose appointment would have been promoted by significant shareholders, or who are linked to significant shareholders and/or companies of their group, explaining the nature of such relationships, shall be indicated. In particular, the existence, identity and position of members of the board, or representatives of the listed company, who are, in turn, members of the administrative body, or its representatives, in companies that hold significant interests in the listed company or in companies of the group of said significant shareholders:

Name or company name of the related board director or representative	Name or company name of the affiliated significant shareholder	Company name of the significant shareholder group	Description relationship/position
MR. LUIS HERNANDO DE LARRAMENDI MARTİNEZ	CARTERA MAPFRE, S.L. SINGLE-MEMBER COMPANY	CARTERA MAPFRE, S.L. SINGLE-MEMBER COMPANY	Appointed board director as proposed by the significant shareholder
MR. ANTONIO MIGUEL- ROMERO DE OLANO	CARTERA MAPFRE, S.L. SINGLE-MEMBER COMPANY	CARTERA MAPFRE, S.L. SINGLE-MEMBER COMPANY	Appointed board director as proposed by the significant shareholder
MR. ALFONSO REBUELTA BADÍAS	CARTERA MAPFRE, S.L. SINGLE-MEMBER COMPANY	CARTERA MAPFRE, S.L. SINGLE-MEMBER COMPANY	Appointed board director as proposed by the significant shareholder
MR. ANTONIO HUERTAS MEJÍAS	CARTERA MAPFRE, S.L. SINGLE-MEMBER COMPANY	CARTERA MAPFRE, S.L. SINGLE-MEMBER COMPANY	Chairman of the Board of Directors of CARTERA MAPFRE, S.L. SINGLE-MEMBER COMPANY
MR. IGNACIO BAEZA GOMEZ	CARTERA MAPFRE, S.L. SINGLE-MEMBER COMPANY	CARTERA MAPFRE, S.L. SINGLE-MEMBER COMPANY	Board Director of CARTERA MAPFRE, S.L. SINGLE-MEMBER COMPANY
MR. JOSÉ MANUEL INCHAUSTI PÉREZ	CARTERA MAPFRE, S.L. SINGLE-MEMBER COMPANY	CARTERA MAPFRE, S.L. SINGLE-MEMBER COMPANY	Board Director of CARTERA MAPFRE, S.L. SINGLE-MEMBER COMPANY
MR. FERNANDO MATA VERDEJO	CARTERA MAPFRE, S.L. SINGLE-MEMBER COMPANY	CARTERA MAPFRE, S.L. SINGLE-MEMBER COMPANY	Board Director of CARTERA MAPFRE, S.L. SINGLE-MEMBER COMPANY

ANNUAL REPORT ON THE CORPORATE GOVERNANCE OF PUBLICLY TRADED COMPANIES

A.7. I Indicate if any shareholder agreements have been disclosed to the company that affect it under art. 530 and 531 of the Companies Act. Where applicable, briefly describe them and list the shareholders bound by such agreement:

[ ]	Yes
[v]	No

Indicate whether the company knows of the existence of concerted actions among its shareholders. If so, describe them briefly:

【】		Yes
	[v]	No

If there have been any modifications or terminations of said pacts or agreements or concerted actions during the fiscal year, indicate this expressly.

A.8. Indicate whether any person or organization exercise or may exercise control over the company pursuant to article 4 of the Securities Market Act. If so, identify them:

[ V ]		Yes
[ ]		No

Name or company name
FUNDACIÓN MAPFRE

A.9. Complete the following tables regarding the company's treasury stock:

As at the closing date of the fiscal year:

shares	Number of direct Number of indirect shares (*)	Total % of the share capital
30,489,839		0.99

(*) Through:

Name or company name of the direct holder of the interests	Number of direct shares
No data

ANNUAL REPORT ON THE CORPORATE GOVERNANCE OF PUBLICLY TRADED COMPANIES

Explain the significant variations during the fiscal year:

Explain significant changes
In 2019, a total of 6,057,949 treasury stocks were added, representing 0.20 percent of capital and amounting to 15,585,821.85 euros.
A.10. Describe the terms and conditions of the current Annual General Meeting authorization to issue, buy back or transfer treasury stock.
The Board of Directors is currently authorized by the Anual General Meeting so that the Company can increase the share by up to a maxtmum of 153,977,663.65 euros, equivalent to 50 percent of the share captai. The duration is five years calculated from the date of the resolution, passed on Friday, March 9, 2018.
The Board of Directors is currently authorized by the shareholders at the Annual General Meeting to allow the company to proceed, directly or through subsidiaries, to the derivative acquisition of treasury stock, subject to the following limits and requirements:
a) Schemes: Acquisition by sale or by any other vivos for good and valuable consideration, of shares free of any liens or encumbrances.
b) Maximum number of shares to be acquired: Shares whose face value of the face value of the shares already owned by the company and fis subsidiaries, does not exceed 10 percent of the share capital of MAPFRE S.A.
c) Minimum and maximum acquisition price: 90% and 110%, respectively, of their market value on the date of acquisition.
d) Duration of the authorization: Five years calculated from the date of the resolution, passed on March 11, 2016. The shares purchased may be fully or partially used: (1) for disposal or amortization, (1) delivery to workers, employees or administrators of the company of the is a recognized inght to do so directly or as a result of exercising call option in the last paragraph of article 146, section 1, letter a) of the Reast Text of the Companies Act, and (III) reinvestment plans involving dividends or similar instruments.

A.11. Estimated floating capital:

Estimated floating capital	31.25

A.12. Indicate whether there are any restrictions (statutory, legal or otherwise) on the transfer of securities and/or any restriction on the right to vote. Particularly, the existence of any type of restrictions that may make it difficult to take control of the company through the acquisition of its shares in the market shall be communicated, as well as those authorization or prior notice systems that, over the acquisitions or transfers of financial instruments of the company, are applicable by sectoral regulations.

【】	Yes
[V]	No

ANNUAL REPORT ON THE CORPORATE GOVERNANCE OF PUBLICLY TRADED COMPANIES

A.13. Indicate whether the Annual General Meeting has approved measures to counteract a public acquisition bid, pursuant to Law 6/2007.
- [] Vec [ V ] No
- If so, explain the measures approved and the terms and conditions under which the restrictions would become inefficient:
A.14. Indicate whether the company has issued securities that are not traded on a regulated EU market.
- 11 Yes IV 1 No

If so, indicate the different kinds of shares and, for each kind of shares, the rights and obligations conferred:

B. Annual General Meeting

B.1. I Indicate and, where applicable, give details, about whether there are any differences from the minimum standards established under the Companies Act with respect to the quorum and constitution of the Annual General Meeting:
- [ ] Vec [ v ] No
B.2. I Indicate, and where applicable give details, whether there are any differences from the minimum standards established under the Companies Act with respect to the adoption of corporate resolutions:
- [ √ ] Yes

[]

	Reinforced majority different from that established in art. 201.2 of the Companies Act for the cases cited in art.	Other cases of reinforced majority
% established by the company for adopting agreements	0.00	50.01

Article 201 of the Spanish Companis Law established to adopt the agreements referred to in article 1947 to research captar contraction of the estable expent or ritude both will be enough for the agreement to be adopted by absolute majority. However, the favorable vote of two thirds of the capital present or represented at the meeting will be required when at the second call there are shareholders who represent 25 percent or more of the started with vithe of canarenound mo required.

The English version is a translation of the original in case of discrepancy, the Spanish version shall prevall.

CNMV Oficina: ROD MADRID Registro de Entrada Nº: 2020018771 Fecha de registro: 2020-02-12 01:18:30

ANNUAL REPORT ON THE CORPORATE GOVERNANCE OF PUBLICLY TRADED COMPANIES

Pursuant to the provisions of atticle 26 of the amendment of the provisions of Title IV "Protection of the Company's General Interest" (articles 26 to 29) can only be amended by a resolution approved with the votes in favor of the share captial at the Extraordinary Annual General Meeting specifically called for this purpose.

B.3. Indicate the rules applicable to amendment of the company's bylaws. Indicate the majorities established for the amendment of the bylaws, as well as, where applicable, the rules established for protection of the amendment of the bylaws.

There are no partcularities other than those established in force for amendment of the company's bylaws, except for the arrendment of articles 26 to 29 (Title IV- Protection of the Company's General In the previous paragraph B.2, a resolution adopted with the favorable vote of more than 50 percent of share capital at the Extraordinary General Meeting called for that purpose is necessary.

B.4. Give attendance data on the Annual General Meetings held during the fiscal year to which this report refers and those from the two previous fiscal years:

	Attendance data
Date of board meeting	% of physical presence	% in representation	% remote voting Electronic Vote	Oigers	Potal
3/10/2017	68.88	13.42	0.00	0.90	83.20
Of which floating capital	1.15	13.42	0.00	0.90	15.47
3/9/2018	68.73	13.10	0.00	0.24	82.07
Of which floating capital	1.26	13.10	0.00	0.24	14.60
3/8/2019	68.64	12.69	0.00	1.05	82.38
Of which floating capital	0.12	12.69	0.00	1.05	13.86

B.5. Indicate whether at the General Meetings held during the fiscal year there has been any item on the agenda that, for whatever reason, has not been approved by the shareholders:
- [ ] Yes
- [ √ ] No
B.6. I Indicate if there are any statutory restrictions that establish a minimum number of shares required to attend the Annual General Meeting, or to vote remotely:
- 1 V 1 Yes [ ] No

Number of shares necessary to attend the Annual General Meeting	1,000
Number of shares required to vote remotely

ANNUAL REPORT ON THE CORPORATE GOVERNANCE OF PUBLICLY TRADED COMPANIES

B.7. Indicate whether it has been established that certain decisions, other than those established by law, involving an acquisition, transfer, contribution to another company of essential assets or other similar corporate operations, must be submitted for approval by the Annual General Meeting:

[ ]		Yes

[ V ] No

B.8. Indicate the address and method of access to the company's website, to the information on corporate governance and other information on Annual General Meetings that must be available to shareholders through the Company's website:

Access is as follows: www.mapfre.com

Section titled Shareholders and Investors.

annual report on the corporate Governance of PUBLICLY TRADED COMPANIES

C. Governance structure of the company

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C.1. Board of Directors
- C.1.1 Maximum and minimum number of board directors foreseen in the bylaws and the number set out by the Annual General Meeting:

Maximum number of board directors	20
Minimum number of board directors
Number of board directors set by the Annual	15
General Meeting

C.1.2 Complete the following table on the board members:

Name or company name of the board director	Category of the board director	Position on the Board	Date of first appointment	Date of last appointment	Flection procedure
MR. ANTONIO HUERTAS MEJÍAS	Executive	CHAIRMAN AND CEO	12/29/2006	3/9/2018	ANNUAL GENERAL MEETING RESOLUTION
MR. IGNACIO BAFZA GÓMEZ	Executive	FIRST VICE CHAIRMAN	3/8/2008	3/11/2016	ANNUAL GENERAL MEETING RESOLUTION
MS. CATALINA MINARRO BRUGAROLAS	Independent	SECOND VICE CHAIRMAN	10/30/2013	3/9/2018	ANNUAL GENERAL MEETING RESOLUTION
MR. JOSE MANUEL INCHAUSTI PEREZ	Executive	THIRD VICE CHAIRMAN	7/18/2018	3/8/2019	ANNUAL GENERAL MEETING RESOLUTION
MR. JOSE ANTONIO COLOMER GUIU	Independent	BOARD DIRECTOR	2/9/2016	3/11/2016	ANNUAL GENERAL MEETING RESOLUTION
MS. ANA ISABEL FERNÁNDEZ ALVAREZ	Independent	BOARD DIRECTOR	7/26/2016	3/10/2017	ANNUAL GENERAL MEETING RESOLUTION

ANNUAL REPORT ON THE CORPORATE GOVERNANCE OF PUBLICLY TRADED COMPANIES

Name or company name of the board director	Category of the board director	Position on the Board	Date of first appointment	Date of last appointment	Election procedure
MS. MARÍA LETICIA DE FREITAS COSTA	Independent	BOARD DIRECTOR	7/23/2015	3/11/2016	ANNUAL GENERAL MEETING RESOLUTION
MS. ROSA MARÍA GARCÍA GARCÍA	Independent	BOARD DIRECTOR	9/26/2019	9/26/2019	CO-OPTING
MR. ANTONIO GOMEZ CIRIA	Independent	BOARD DIRECTOR	1/1/2019	3/8/2019	ANNUAL GENERAL MEETING RESOLUTION
MR. LUIS HERNANDO DE LARRAMENDI MARTINEZ	Nominee	BOARD DIRECTOR	4/17/1999	3/8/2019	ANNUAL GENERAL MEETING RESOLUTION
MR. FRANCISCO JOSÉ MARCO ORENES	Executive	BOARD DIRECTOR	3/10/2017	3/10/2017	ANNUAL GENERAL MEETING RESOLUTION
MR. FERNANDO MATA VERDEJO	Executive	BOARD DIRECTOR	1/1/2017	3/10/2017	ANNUAL GENERAL MEETING RESOLUTION
MR. ANTONIO MIGUEL-ROMERO DE OLANO	Nominee	BOARD DIRECTOR	4/17/1999	3/8/2019	ANNUAL GENERAL MEETING RESOLUTION
MS. MARÍA DEL PILAR PERALES VISCASILLAS	Independent	BOARD DIRECTOR	1/1/2018	3/9/2018	ANNUAL GENERAL MEETING RESOLUTION
MR. ALFONSO REBUELTA BADÍAS	Nominee	BOARD DIRECTOR	4/17/1999	3/8/2019	ANNUAL GENERAL MEETING RESOLUTION

231

Total number of board directors

ANNUAL REPORT ON THE CORPORATE GOVERNANCE OF PUBLICLY TRADED COMPANIES

Indicate the changes that, whether due to resignation, dismissal or for any other reason, have taken place in the board of directors during the informed period:

Name or company name of the board director	Category of the board director on stermination	Date of last appointment	Termination date	Specialized committees of WOTOR he was a member	Indicate whether the change occurred before the end
MR. GEORG DASCHNER	Independent	3/8/2019	8/18/2019	Steering Committee (member) Risk Committee (Chairman)	YES

Causes of the change and other observations

D. Georg Daschner resigns from his dutles on the grounds of having reached the maximum age provided for in the Company's bylanced the reasons for his resignation in a letter addressed to all members of the Board of Directors.

C.1.3 Complete the following tables on the Board members and their different kinds of board directorship:

EXECUTIVE DIRECTORS
Name or company name of the board director	Position within company organization	Pro ile
MR. ANTONIO HUERTAS MEITAS	CHAIRMAN AND CEO	Holds a law degree from the University of Salamanca. Has occupied, among others, the positions of Chairman and CEO of MAPFRE FLORIDA and MAPFRE PUERTO RICO, General Director of MAPFRE MUTUALIDAD, Chairman of MAPFRE FAMILIAR and Third Vice Chairman of MAPFRE. For more information on the current positions, please see sections A.6, C.1.10 and C.2.1.
MR. IGNACIO BAEZA GOMEZ	FIRST VICE CHAIRMAN	Degree in Economics from the Complutense University of Madrid. He has spent a large part of his professional career at MAPFRE, holding several senior executive positions since he joined. For more information on the current positions, please see sections A.6, C.1.10 and C.2.1.
MR. JOSÉ MANUEL INCHAUSTI PÉREZ	THIRD VICE CHAIRMAN	A Law graduate from the Complutense University of Madrid who also completed the Senior Management Program at IESE He has spent a large part of his professional career at MAPFRE, holding several senior executive positions since he joined. CEO of the IBERIA Territorial Area since 2015. For more information on the current positions, please see sections A.6 and C.1.10.
MR. FRANCISCO JOSÉ MARCO ORENES	GROUP CHIEF BUSINESS SUPORT OFFICER AND MEMBER OF THE BOARD	Has a degree in Medicine and Surgery from the University of Murcia. He is a specialist in Geriatrics from the University of Murcia and in Nutrition from the University of Granada and he has a Masters Degree in Company Administration from the IDAE. He has held various senior management positions at MAPFRE since joining. Group Chief Business Support Officer

ANNUAL REPORT ON THE CORPORATE GOVERNANCE OF PUBLICLY TRADED COMPANIES

		EXECUTIVE DIRECTORS
Name or company name of the board cirestor	Position within company organization	Profile
		C.1.10.	since 2015. For more information on the current positions, please see section
MR. FERNANDO MATA VERDEJO	BOARD	Has a degree in Business Science from the Universidad Autonoma de Madrid (Autonomous University of Madrid). He has spent much of his CFO AND MEMBER OF THE professional career in MAPFRE, holding different senior management positions since he started. CFO of the Corporate Finance and Resources Area since 2017. For more information on the current positions, please see sections A.6 and C.1.10.
	Total number of executive board directors	5
	% of total board	33.33

Total number of executive board directors
% of total board	33.331

NOMINEE EXTERNAL DIRECTORS
Name or company name of the board director	Name or denomination of the significant shareholder whom he/she represents or who has suggested his/her appointment	Profile
MR. LUIS HERNANDO DE LARRAMENDI MARTINEZ	CARTERA MAPFRE, S.L. SINGLE-MEMBER COMPANY	A Law graduate from the Complutense University of Madrid, Official Industrial and Intellectual Property Agent in Spain and European Patent Agent. He was a member and board member of Elzaburu, S.L.P. until 2016 and is a member of the International Association for the Protection of Intellectual Property. For more information on the current positions, please see sections A.6, C.1.10 and C.2.1.
MR. ANTONIO MIGUEL-ROMERO DE OLANO	CARTERA MAPFRE, S.L. SINGLE-MEMBER COMPANY	Agricultural Engineer graduate from the Polytechnic University of Madrid. Also holds a Masters in Business Administration (MBA) from the Madrid Business Institute. From 1986 to 2005 he was Deputy Risk Manager at FIAT FINANCIERA. For more information on the current positions, please see sections A.6, C.1.10 and C.2.1.
MR. ALFONSO REBUELTA BADIAS	CARTERA MAPFRE, S.L. SINGLE-MEMBER COMPANY	Is a graduate in Business Sciences from Pontificia Comillas University and also holds a Masters in Business Administration (MBA) from the University of Colombia (New York). He was Vice Chairman of JP Morgan and Vice Chairman of Citibank until 1991, a partner at Heidrick & Struggles and consultant partner at Asset Executive. He has been a partner at Signium International since 2004. For more information on the current positions, please see sections A.6, C.1.10 and C.2.1.
	Total number of nominee board directors	3
	% of total board	20.00

ANNUAL REPORT ON THE CORPORATE GOVERNANCE OF PUBLICLY TRADED COMPANIES

INDEPENDENT EXTERNAL BOARD DIRECTORS
Name or company name of the board director	Profie
MS. CATALINA MINARRO BRUGAROLAS	Degree in law. State attorney on leave of absence. For more information on the current positions, please see sections C.1.10 and C.2.1.
MR. JOSÉ ANTONIO COLOMER GUIU	Business Administration Degree (School of Business Management and Administration - Barcelona). For more information on the current positions, please see sections C.1.10 and C.2.1.
MS. ANA ISABEL	Has a Degree and Doctorate in Economics and Business Science from the Universidad de Oviedo (Oviedo University). Member of the Board of Directors of BME Bolsas y Mercados Españoles, S.A., member of the corporate reporting consultative committee of the European Securities Authority, General Director of CUNEF FERNANDEZ ALVAREZ and member of the Board of Directors of the Princesa de Asturias Foundation and the Banco de Sabadell Foundation. She is also a Professor of Financial Economics at the University of Oviedo and Professor of Finances at CUNEF. For more information on the current positions, please seetions C.1.10 and C.2.1.
MS. MARIA LETICIA DE FREITAS COSTA	Holds a degree in Product Engineering and a Master's Degree in Business Administration (MBA). Manager of the Insper Center for Strategic Research and a partner at Prada Assessoria. For more information on the current positions, please see section C.1.10.
MS. ROSA MARÍA GARCÍA GARCÍA	Has a degree in Law from the Autonomous University of Madrid. She has been non-executive Chairman of the SIEMENS GAMESA Board of Directors, Chairman and CEO of SIEMENS SPAIN. She is a member of the Board of Directors of Tubacex, S.A. and Sener Grupo de Ingeniería, S.A. For more information on the current positions, please see section C.1.10.
MR. ANTONIO GOMEZ CIRIA	A graduate in Economic and Business Sciences and in Mathematical Sciences from the Complutense University of Madrid who holds an Executive MBA from the IESE. He is a member of the Board of Directors of Red Eléctrica Corporación, S.A. and Chairman of its Audit Committee and a member of the Advisory Board of Experts on Accounting and Financial Information of the General Board of the College of Economists. For more information on the current positions, please see sections C.1.10 and C.2.1.
MS. MARIA DEL PILAR PERALES VISCASILLAS	Law degree from the Autonomous University of Madrid and PhD in law from the Carlos III University of Madrid. Professor of mercantile law at the Carlos III University of Madrid. For more information on the current positions, please see sections C.1.10 and C.2.1.
	7 Total number of independent board directors

ANNUAL REPORT ON THE CORPORATE GOVERNANCE OF PUBLICLY TRADED COMPANIES

Indicate whether any board director classified as independent receives from the company, or from its Group, any amount or earning for an item other than the board director's remuneration, or maintained, during last fiscal year a business relationship with the company or with any company from its Group, whether on his behalf or as a significant shareholder, board director or senior management member of a company that maintained such a relationship.

if so, include a reasoned statement from the reasons why it considers that this board director may perform his functions as an independent board director.

Name or company
name of the board	Relationship description	Reasoned statement
director
No data

No board director classified as Independent receives, from the Company or the Group, any amount or benefit for an item than board director's remuneration.

OTHER EXTERNAL BOARD DIRECTORS

Identify other external board directors and explain in detail the reasons for which they cannot be considered nominee or independent board directors, as well as their affiliations with the company, its management or its shareholders:

Name or company name of the board director	Reasons	Company, executive or shareholder with whom holds the affiliation	Profile
No data

Total number of external board directors	N/R
% of total board	N/R

Indicate any changes that may have occurred during the period in the type of category for each board director:

Name or company name of the board director	Date of change	Previous category	Current category
No data

C.1.4 Complete the following table with information relating to the number of female board directors at the last four fiscal years, as well as the category of these female board directors:

		Number of female board directors			% of the total of board directors of each category
	Fiscal year 2019	Fiscal year 2018	Fiscal year 2007	22016	Fiscal year Fiscal year 2019	Fiscal year 2018 3	Fiscal year 2017	Fiscal year 2016
Executives					0.00	0.00	0.00	0.00
Nominees					0.00	0.001	0.001	0.00

ANNUAL REPORT ON THE CORPORATE GOVERNANCE OF PUBLICLY TRADED COMPANIES

	Number of female board directors					% of the total of board directors of each category
	Fiscal year 2889	Fiscal year 2018	Fiscal year 20187	Fiscal year 2016	Fiscal year 2019	Fiscal year 2018	Fiscal year 2017	Fiscal year 2016
Independent	5	0		1	71.43	66.67	66.67	57.14
Other External					0.00	0.00	0.00	0.00
TOTAL	5	4	য	4	33.33	28.57	26.67	23.53

C.1.5 Indicate whether the company has diversity policies regarding the board of directors with regard to issues such as age, gender, disability, or professional training and experience. Small and medium-sized companies, in accordance with the definition established in the Account Audit Law, shall have to inform, at least, of the policy they have established regarding gender diversity.

IVI Yes
【】 No
Partial policies [ ]

If yes, please describe such diversity policies, the measures and the way in which they have been implemented and their results in the fiscal year. The specific measures adopted by the board of directors and the appointments and remuneration committee should also be indicated in order to achieve a balanced and diverse presence of hoard directors.

Should the company not apply a diversity policy, please explain the reasons why.

Description of the policies, objectives, measures and manner in which they have been applied, as well as the results obtained

The Institutional, Business and Organizational Principles of the MAPRE Board of Directors on June 24, 2015, expressly state The Institutional of Drecors will develop a plan for filling vacancies the suitability of the applicants to these vacances, based on thelr skills and professional and geographical backgrounds as well as on a sufficient presence of members of both genders.

Likewise, MAPFRE has established a Policy for the Selection of Board Directors that in the selection process any type of implicit blas that may Elicense, for rite has established i 1 the 10 election of persons from gender or the other will be avoice of female of female invile discinnation and miners of celebel of belief. Birds. On Spirator Child. Greater 26, 2019. Mrs. Rosenber 26, 2019. West Read Garch was beard directors will colose in the percent of women's repesentation on the Board of Directors consequently reaching 33 percent.

Similarly, it is established that the competent bodies will ensure that, when vacancies arse, equal opportunities are guaranteed for candidates regardless of their gender, and they must seek to achieve an effective presence of board directors of both genders.

The Board of Directors currently consists of fifteen members, who as a whole possedner and experience relating of the following area. Previole and province of province of pro The bad of the collection of Childler, menodely more in the market on and and and and and and on the may be may now more of the may now mo nisulance and manus mances of the Barces inceating meathy participate in the specific committees of the Board and/or have a key role: I ) N.s. nre or all meet hierne of the Doll of Starman of the Board of Directors and the Steering Committee, Chair of the Appointments and Remuneration Committee and Independent Lead board drector; il) Ms. Ana Isabel Fernández Ávarez is a member of the Audit and Compliance Committee and the Risk Committee; and iii) Ms. María del Pilar Perales Viscasillas is a member of the Audit and Compliance Committee.

Geographic and cultural diversity is also visible at Board level, with two nationalities represented: Spanish and Brazilian.

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ANNUAL REPORT ON THE CORPORATE GOVERNANCE OF PUBLICLY TRADED COMPANIES

C.1.6 Explain the measures which, where applicable, the Appointments Committee has agreed so that the procedure for filling Board vacancies has no implicit bias against women candidates, and the company makes a conscious effort to include women with the target profile among the candidates for Board seats, and achieve a balanced presence of women and men:

	Explanation of the measures
	The Appointments and Remuneration Committee must ensure that during the candidate selection process any kind of Implicit blases are aways avoided, which may involve discrimination and, In particular, those blases that interfere with the selection of persons of elther gender.
	In 2015 the Appointments and Remuneration Committee approved a renewal plan for the Board of Directors establishing the steps to follow in the period 2015- 2020 to adapt the structure of the Board of Drecors to the new legal requirements and recommendations contained in the Code of Good Governance of the National Securities and Exchange Commission.
	When, in spite of the measures which, where applicable, have been adopted, there are few or no female board directors, explain
	the reasons that justify this.

	Explanation of the reasons
Not applicable.
	C.1.7 Explain the conclusions of the Appointments Committee on the verification of compliance with the Board of Directors
	Selection Policy. In particular, explain how this policy is promoting the objective that by 2020 the number of female
	board directors represents at least 30 percent of the total of members of the Board of Directors.
	MAPFRE's Board of Directors Selection Policy aims to ensure that the proposals for nomination and re-election of bard on a preliminary analysis of the Board of Directors needs, and to promote a dversity of knowledge, experiences and gender on the Board. It expressy sets out the commitment b ensure that in the year 2020 the number of female board directors shall represent at least 30 percent of the Board of Directors.
	As indicated in section C.1.6 above, with the appointment of Ms. Rosa María García as an Independent board drector, the objective set in the aforementioned policy (to get the number of female board drectors to represent of the total members of the Board of Directors in 2020) was reached. In accordance with the provisions of the Board of Directors renewal plan, this participation will be maintained or Increased, depending on the suitability of the proposed candidates.
	and commonction of the Rosed

Throughout the year, the Appointmention Committee has carried out a constant analysis of the spectives are and mroughout the year, the Applimatelia Commitched in Committee no cy and in the regeral plan white have already been described in and or the principes and objectives established in the board of breaker only enements and best corporate governance practices.

In particular, the Applicition is and Remuners of the Compliance with the Board of Dhecker Selection Policy during of Mr. José Manuel Tochayel Perez, Mr. Antono Gonec Cl In parcular, the Applicities and Renintee venter canpielle with the re-election of Mr. Jose Wanual Inchanis (rea, Mr. Antonio Mouel-Romen of Clares City, Mr. Anton Niguel-Rom preparing the proposals for the apportunent of Mr. Le escader of Mr. Socord in Manado Perior, Mr. Antono Mguel-Romero de Olano and Mr. Alfonso Rebuelta Badías.

C.1.8 Explain, where applicable, the reasons why nominee board directors have been appointed at the behest of shareholders whose shareholding is less than 3 percent of the capital:

Name or company name of the shareholder	Justification
No data l

ANNUAL REPORT ON THE CORPORATE GOVERNANCE OF PUBLICLY TRADED COMPANIES

Indicate whether formal petitions for a seat on the board have been ignored from shareholders whose holding is equal to or higher than others at whose behest nominee board directors were appointed. Where applicable, explain why these petitions have been ignored:

【】 Yes

[ √ ] No

C.1.9 Indicate, if any, the powers delegated by the board of directors on board directors or committees of the board:

Name or company name of the
board director or committee

Brief description

STEERING COMMITTEE

The Steering Committee is the delegate body of the Board of Directors for the
executive management and permanent supervision of the everyday management of
the Company and its subsidiaries in strategic and operational aspects and for the
adoption of decisions necessary for their proper functioning. It has general decision-
making capacity, with express delegation in its favor of all the powers that correspond
to the Board of Directors except those that are not delegable by the Law, the
Company's Bylaws or the Board of Directors Regulations. It may delegate to any of its
members the necessary powers for the final adoption of decisions previously discussed
by the Committee, and for the implementation of the agreements it adopts.

C.1.10 Identify, where applicable, any members of the Board holding posts as board directors, representatives of board directors or managers in other companies that are part of the listed company of the group:

Name or company name of the board director	Company name of the Group company	Position	Do they have executive functions?
MR. ANTONIO HUERTAS MEJÍAS	MAPFRE INTERNACIONAL, S.A.	CHAIRMAN AND CEO	NO
MR. IGNACIO BAEZA GÓMEZ	MAPFRE ASISTENCIA, COMPAÑÍA INTERNACIONAL DE SEGUROS Y REASEGUROS, S.A.	CHAIRMAN	NO
MR. IGNACIO BAEZA GOMEZ	MAPFRE PARTICIPATIONS, S.A.U.	ADMINISTRATOR	NO
MR. IGNACIO BAEZA GOMEZ	MAPFRE INTERNACIONAL, S.A.	BOARD DIRECTOR	NO
MS. CATALINA MIÑARRO BRUGAROLAS	MAPFRE ESPAÑA, COMPAÑÍA DE SEGUROS Y REASEGUROS, S.A.	BOARD DIRECTOR	NO
MS. CATALINA MIÑARRO BRUGAROLAS	MAPFRE VIDA SOCIEDAD ANÓNIMA DE SEGUROS RESASEGUROS SOBRE IA VIDA HUMANA	BOARD DIRECTOR	NO

annual report on the corporate governance of PUBLICLY TRADED COMPANIES

Name or company name of the board director	Company name of the Group company	Position	Do they have executive functions?
MS. CATALINA MIÑARRO BRUGAROLAS	MAPFRE INTERNACIONAL, S.A.	BOARD DIRECTOR	NO
MR. JOSÉ MANUEL INCHAUSTI PÉREZ	MAPFRE ESPAÑA, COMPAÑÍA DE SEGUROS Y REASEGUROS, S.A.	FIRST VICE CHAIRMAN AND MANAGING DIRECTOR	YES
MR. JOSÉ MANUEL INCHAUSTI PEREZ	MAPFRE VIDA SOCIEDAD ANÒNIMA DE SEGUROS Y RESASEGUROS SOBRE LA VIDA HUMANA	BOARD DIRECTOR	NO
MR. JOSÉ MANUEL INCHAUSTI PÉREZ	MAPFRE INTERNACIONAL, S.A.	BOARD DIRECTOR	NO
MR. JOSÉ MANUEL INCHAUSTI PEREZ	MAPFRE GLOBAL RISKS, AGENCIA DE SUSCRIPCIÓN, S.A.	BOARD DIRECTOR	NO
MR. JOSÉ MANUEL INCHAUSTI PEREZ	MAPFRE SEGUROS GERAIS	CHAIRMAN	NO
MR. JOSE MANUEL INCHAUSTI PÉREZ	VERTI ASEGURADORA, COMPAÑÍA DE SEGUROS Y REASEGUROS, S.A.	ADMINISTRATOR	NO
MR. JOSÉ MANUEL INCHAUSTI PÉREZ	SANTANDER MAPFRE SEGUROS Y REASEGUROS, S.A.	CHAIRMAN	NO
MR. JOSE MANUEL INCHAUSTI PĚREZ	MAPFRE RE, COMPAÑÍA DE REASEGUROS, S.A.	BOARD DIRECTOR	NO
MR. JOSÉ ANTONIO COLOMER GUIU	MAPFRE ESPAÑA, COMPAÑÍA DE SEGUROS Y REASEGUROS, S.A.	BOARD DIRECTOR	NO
MR. JOSÉ ANTONIO COLOMER GUIU	MAPFRE VIDA SOCIEDAD SEGUROS ANÖNIMA DE Y SOBRE LA RESASEGUROS VIDA HUMANA	BOARD DIRECTOR	NO
MS. ANA ISABEL FERNÁNDEZ ÁLVAREZ	MAPFRE GLOBAL RISKS, AGENCIA DE SUSCRIPCIÓN, S.A.	BOARD DIRECTOR	NO
MS. ANA ISABEL FERNÁNDEZ ÁLVAREZ	MAPFRE RE, COMPAÑÍA DE REASEGUROS, S.A.	BOARD DIRECTOR	NO
MS. MARÍA LETICIA DE FREITAS COSTA	BB MAPFRE PARTICIPAÇOES, S.A.	BOARD DIRECTOR	NO
MS. MARÍA LETICIA DE FREITAS COSTA	MAPFRE PARTICIPAÇOES, S.A.	VICE CHAIRMAN	NO

239

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ANNUAL REPORT ON THE CORPORATE GOVERNANCE OF PUBLICLY TRADED COMPANIES

Name or company name of the board director	Company name of the Group company	Position	Do they have executive functions?
MS. ROSA MARÍA GARCÍA GARCIA	MAPFRE ESPAÑA, COMPAÑÍA DE SEGUROS Y REASEGUROS, S.A.	BOARD DIRECTOR	NO
MR. ANTONIO GOMEZ CIRIA	MAPFRE ESPAÑA, COMPAÑÍA DE SEGUROS Y REASEGUROS, S.A.	BOARD DIRECTOR	NO
MR. ANTONIO GOMEZ CIRIA	MAPFRE RE, COMPAÑIA DE REASEGUROS, S.A.	BOARD DIRECTOR	NO
MR. ANTONIO GÓMEZ CIRIA	MAPFRE VIDA SOCIEDAD ANONIMA DE SEGUROS Y RESASEGUROS SOBRE I A VIDA HUMANA	BOARD DIRECTOR	NO
MR. LUIS HERNANDO DE LARRAMENDI MARTÍNEZ	MAPFRE INTERNACIONAL, S.A.	BOARD DIRECTOR	NO
MR. LUIS HERNANDO DE LARRAMENDI MARTINEZ	MAPFRE ESPAÑA, COMPAÑÍA DE SEGUROS Y REASEGUROS, S.A.	SECOND VICE CHAIRMAN	NO
MR. LUIS HERNANDO DE LARRAMENDI MARTINEZ	VIDA MAPFRE SOCIEDAD ANONIMA DE SEGUROS Y SOBRE RESASEGUROS LA VIDA HUMANA	SECOND VICE CHAIRMAN	NO
MR. FRANCISCO JOSE MARCO ORENES	MAPFRE INTERNACIONAL, S.A.	BOARD DIRECTOR	NO
MR. FRANCISCO JOSÉ MARCO ORENES	MAPFRE GLOBAL RISKS, AGENCIA DE SUSCRIPCION, S.A.	CHAIRMAN	NO
MR. FRANCISCO JOSE MARCO ORENES	FUNESPAÑA, S.A.	CHAIRMAN	NO
	MR. FERNANDO MATA VERDEJO MAPFRE INTERNACIONAL, S.A.	BOARD DIRECTOR	NO
MR. FERNANDO MATA VERDEJO	MAPFRE ESPAÑA, COMPAÑÍA DE SEGUROS Y REASEGUROS, S.A.	BOARD DIRECTOR	NO
MR. FERNANDO MATA VERDEJO ANONIMA DE SEGUROS Y	MAPFRE VIDA SOCIEDAD RESASEGUROS SOBRE LA VIDA HUMANA	BOARD DIRECTOR	NO
MR. FERNANDO MATA VERDEJO MAPFRE INMUEBLES S.G.A.,	S.A.	ADMINISTRATOR	NO
MR. FERNANDO MATA VERDEJO MAPFRE PARTICIPATIONS,	S.A.U.	ADMINISTRATOR	NO

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ANNUAL REPORT ON THE CORPORATE GOVERNANCE OF PUBLICLY TRADED COMPANIES

Name or company name of the board director	Company name of the Group company	Position	Do they have executive functions?
MR. ANTONIO MIGUEL- ROMERO DE OLANO	MAPFRE ASISTENCIA, COMPAÑÍA INTERNACIONAL DE SEGUROS Y REASEGUROS, S.A.	BOARD DIRECTOR	NO
MR. ANTONIO MIGUEL- ROMERO DE OLANO	MAPFRE ESPAÑA, COMPAÑÍA DE SEGUROS Y REASEGUROS, S.A.	BOARD DIRECTOR	NO
MR. ANTONIO MIGUEL- ROMERO DE OLANO	MAPFRE VIDA SOCIEDAD ANÓNIMA DE SEGUROS Y SOBRE LA RESASEGUROS VIDA HUMANA	BOARD DIRECTOR	NO
MS. MARÍA DEL PILAR PERALES VISCASILLAS	MAPFRE ASISTENCIA, COMPAÑÍA INTERNACIONAL DE SEGUROS Y REASEGUROS, S.A.	VICE CHAIRMAN	NO
MS. MARÍA DEL PILAR PERALES VISCASILLAS	MAPFRE GLOBAL RISKS, AGENCIA DE SUSCRIPCIÓN, S.A.	BOARD DIRECTOR	NO
MR. ALFONSO REBUELTA BADİAS	MAPFRE GLOBAL RISKS, AGENCIA DE SUSCRIPCIÓN, S.A.	VICE CHAIRMAN	NO
MR. ALFONSO REBUELTA BADİAS	MAPFRE INTERNACIONAL, S.A.	BOARD DIRECTOR	NO

C.1.11 Detail, where appropriate, the board directors or representatives of their company, who are members of the board of directors or representatives of legal persons of other companies listed on official securities markets other than their group, which have been notified to the company:

Name or company name of the board director	Company name of the listed company	Position
MS. CATALINA MIÑARRO BRUGAROLAS	ACS, ACTIVIDADES DE CONSTRUCCIÓN Y SERVICIOS, S.A.	BOARD DIRECTOR
MS, ANA ISABEL FERNÁNDEZ ÁLVAREZ	BOLSAS Y MERCADOS ESPAÑOLES, SOCIEDAD HOLDING DE MERCADOS Y SISTEMAS FINANCIEROS, S.A.	BOARD DIRECTOR
MS. ROSA MARIA GARCÍA GARCÍA	TUBACEX, S.A.	BOARD DIRECTOR
MR. ANTONIO GOMEZ CIRIA	RED ELÉCTRICA CORPORACIÓN, S.A.	BOARD DIRECTOR

ANNUAL REPORT ON THE CORPORATE GOVERNANCE OF PUBLICLY TRADED COMPANIES

C.1.12 Indicate and, if applicable, explain if the company has established rules on the maximum number of boards of companies in which its board directors can be part, identifying, where appropriate, where it is regulated:
[v] Yes No
[ ]

ర్ స్టాఫ్ ఆఫ్ 2017 లో వి Explanation of the rules and identification of the document where it is regulated

According to article 4 of the MAPFRE Regulation of the Board of Director can simultaneously be a member of more than five Boards of board directors of companies that do not form part of the Group, except for personal or family companies.

C.1.13 Indicate the amounts of the items related to the overall remuneration of the following board of directors:

Remuneration accrued in the fiscal year in favor of the board of directors (thousands of euros)	10,252
Amount corresponding to the rights accumulated by current board directors regarding pensions (thousands of euros)	26,809
Amount corresponding to the rights accumulated by former board directors regarding pensions (thousands of euros)

C.1.14 Identify those executive management members who are not also executive board directors, and indicate the total remuneration earned by them during the fiscal year:

Name or company name	Position/s
MR. ANGEL LUIS DÁVILA BERMEJO	GENERAL COUNSEL
MR. JOSÉ LUIS JIMÉNEZ GUAJARDO- FAJARDO	GROUP CHIEF INVESTMENT OFFICER
MS. EVA PIERA ROJO	GROUP CHIEF EXTERNAL RELATIONS AND COMMUNICATION OFFICER
MS. MARÍA ELENA SÁNZ ISLA	GROUP CHIEF PEOPLE OFFICER
MR. JOSÉ MANUEL CORRAL VÁZQUEZ	GROUP CHIEF BUSINESS OFFICER
MR, JOSÉ LUIS GURTUBAY FRANCIA GROUP CHIEF STRATEGY AND M&A OFFICER
MS, MARÍA LUISA GORDILLO GUTTÉRREZ	GROUP CHIEF INTERNAL AUDIT OFFICER
MR. JOSÉ ANTONIO ARIAS BERMUDEZ	GROUP CHIEF OPERATIONS OFFICER
	4,391 Total remuneration of executive management employees (in thousands of euros)

C.1.15 Indicate whether during the fiscal year there has been any change in the board regulations:

[ v ] Yes
【】 No

్యాల్యం గ్రామం నుండి 10 కి.మీ. దూర

Description of amendments

The Board of Directors, at Its meeting on December 13, 2019, approved the following amendments to the Rules of Directors:

242

ANNUAL REPORT ON THE CORPORATE GOVERNANCE OF PUBLICLY TRADED COMPANIES

Amendment of article 2 in order to include the new non-delegable jurisdiction of the Board of Directors introduced by Law 11/2018, of December 28, which and Annuncil of Drace I in Vol. Go Ranad Grien Tables and Subleman Casino in Caree 1/2010, of July 2, and Law 22/2015, of July 2 20, on Account Auditing, regarding non-financial information and diversity.
Amendment of section 3 of article 9 in order to eliminate a minimum annual number of meetings to be held by the Steering Committee.
Amendment of sections 1 and 3 of article 12 in order to elminate references to the Compliance Risk Committee.

C.1.16 Indicate procedures for selection, appointment, re-election and removal of board directors. List the competent bodies, the procedures to be followed and the criteria to be employed in each procedure.

The persons to whom the postion of board director of MAPFRE S.A. or of a subsitiary company is offered must make a prior, true and full statement of The personal, family, professional or business circumstances, specially stating: (1) the persons or companies that have, with researces billility, in status of related persons in accordance with the provisions of the current legislation; (ii) any circumstibility in accordance with the laws, the Bylaws and the Regulations of the Board of Directors, or a situation of confilct of interest; (Ii) his/her remaining accounter with the bris, the byter the tee testions of the position; (the position) (the position) (the morely on the helps popers on a partic plocesonal obligatoris) in case they coulding that affects him/her and that may be relevant for his/her performance as a Board director This declaration must be made on the form provided for such purposes by MPFRE, and shall hclude an express acceptance of the regulations set out in the Corporate Bylaws and other internal regulations, as well as in current legislation.

Any person who holds the position of board director must be of renowned prestige in his/her properision in theller in a beller interneting by the line in the learther qualifications or experience as provided by law for finance companies subject to supervision by Public Authorties.

Specifically, people cannot be members of they hold significant shares in, or provide professional services to, competing usings the Specifican) people annot of hanibel of they work as employees, managers, or administrators of them, unless they are granted express authorization from the Board of Directors.

Proposals for the appointment of Independent Board Directors must be preceded by a proposal from the Appolitions by boord during r Froposition of the opportunent of neepedial. Bestime post include an assessment of the performance of the position the annovely of conserved on anyon any one may and using Conninces. The proposed capporiated of being performed by candidates on the Board, taking into account or assessing the amount and quality of the work done by them, and their commitment to the position.
The formulation of proposals for appointment or reappointment by the Board of Directors must be preceded:

a) In the case of Nominee Board Directors, by a sutable proposal of the shareholder backing their appointment.

b) In the case of Executive Board Directors, as well as the Secretary, wiether or not a Board Director, by a suitable proposal from the Chairman of the Board.

Both types of proposais must also be preceded by the corresponding report from the Appointments and Remuneration Committee.

The proposed reappointment of Nominee and Executive Board Directors must issued by the Appointments and " The propose reappentialite it Normoo de a assessment of their positions by board directors curing the previous nandata and polly of the work done by where appropriate, of the miser has mass the Board, taking into account or assessing the amount and quality of the work done by them, and their commitment to the position.

In any case, the proposals for appointment and reapportment of Board Directors must be accompanied by an explanatory report from the Board which assesses the responsibility, experience and merits of the candidate.

The Board of Directors shall not propose to the Any independent be emoved for emoved for mornity a more the experience monther The band of the propos to and thinks of the Read of Directors considers, based on a report from the Repurcedent Committee rol which the bear hestill the been bear of be belled will be deemed thed when the Board Director has falled to compy with the uties inherent to the position, has not complied with any requirement set forth for Independent Board Directors, or has incurred in an Insuperable conflict of Interest according to the provisions of current legislation.

Fecha de registro: 2020-02-12 01:18:30

Nº: 2020018771

Registro de Entrada

Oficina: ROD MADRID

CNMV

ANNUAL REPORT ON THE CORPORATE GOVERNANCE OF PUBLICLY TRADED COMPANIES

C.1.17 Explain how the annual assessment of the board has led to significant changes in its international organization and in the procedures that apply to its activities:

Description of amendments

In line with international best practices, in 2019 the Board of Drectors agreed to hire Deloitte Legal S.L.P. as an extern and the firention of the fire In me nite hits master as well as the Chalin & Board of the Board of the anual self-assessment, the Board of Drectors resolved to take the following measures for 2020:

Introduce executive summaries to accompany documentation presented to facilitate the understanding thereof, where appropriate.
Publish documentation from meetings in advance.
Assess the possibility of incorporating new profiles, when there are future vacancies, with sectoral knowledge and experience in other companies or businesses of an international nature.
Develop basic MAPFRE terminology (acronyms, etc.) that also facilitates the onboarding of new board directors.
To evaluate the incorporation to the Applatments and Remuneration Committee of a third Independent board driector, in Ille with recommendation 47, pertaining to a majority of independent directors, of the Code of Good Governance of the CNMV.
To develop the program of training of Board Directors and to complete the planning schedule for this in the medium-term (one year), so as to facilitate adequate planning on the part of the Board Directors.
Continue developing programs to update the knowledge of board directors on matters related to their specific needs.
To develop a competency maint that defines the skills and knowledge that members of the Board on the characteristics of the MAPFRE Group, so as to facilitate the Committee with the definition of the adequate profiles required for future Board incorporation.
To promote a succession protocol for the Chalman and CEO, which contemplates a succession plan that would allow the Group to be sufficiently prepared to tackle unforeseen situations and guarantee the project's long-term stability.

Describe the assessment process and the areas assessed by the board of directors with the assistance, where applicable, of an external consultant, regarding the operation and composition of the board and its committees and any other area or aspect that has been subject to assessment.

Description of the assessment process and assessment areas

In accordance with the provisions of the Board of Directors of MAPRE, the Board undertakes an anula assessment of the earline of the operation of the engations of the engatio In docularies with the provisions of the Register of this purpose by the Appointments and Remuneration Committee, and the operation of Its the percentiance of the Sharman and States of proposes an action plan to correct any deficiencles detected.

For this fiscal year we relled on the collaboration of Delotte Legal, S.L.P. and it has been based on a questonal interviews with the follow For this issue year we telect of the collaborate or porporate oversance at a national level. The process has focused on the following matters: structure, composition of the Board and its Committees during the 2019 fiscal year.

The report contalning the concusions was submitted to the Board of Drectors on December 13, 2019. Based on the report, the Board undertook the evaluation of The report containing on senaming fiscal year 2019, as well as that of its Committees and Steering Committee.

C.1.18 Itemize, in those fiscal years in which the assessment was carried out with an external consultant, the business relationships that the consultant or any company of its group maintains with the company of its group.

Delotte, a group to which Delotte Legal S.L.P. belongs, has participated throughout the consuling services for the Consultion is the Consultion in the consultion in the consu Decline a group of minities favoral no proched on the leaders of Delatite Legal S. I. as a n external delsor in the evaluation in the company and palmity and polyments on Applificients and Rendleration Committee wordly in 2012 considering the Company and Delotte are not significant.
the Board of Directors of MAPFRE S.A. and its delegated bodie

C.1.19 Indicate the circumstances under which board directors are obliged to resign.

In accordance with the Corporate Bylaws, the Board of Dieting Regulation and the MAFFAC Group's and Organization projection projection projection posignation posignation posi In accoudite will formally resign the band of oncessor in the bland the must submit the corresponing resignant. The Chaman, Me Chaman, Me the Board of Directors who perform executive for Your the Secretary of the Board number the from office on reaching 65 years of age or, on any earlier

ANNUAL REPORT ON THE CORPORATE GOVERNANCE OF

PUBLICLY TRADED COMPANIES

according to the terms and conditions of ther respective contracts, submitting the corresponding resignations, but they may continue as members of the Bard without any executive duties for a maximum of five years in the same conditions as external nominee board directors.

All Board Directors must resign from the Board of Directors and any office held, such as on the Committee, and tender their formal resignation should the Board of Directors deem it pertinent, in the following cases:

a) Whenever they are removed from the executive office associated with their appointment as members of these governing bodies.

b) Should they become subject to any disqualification or prohibition lald down under law.

c) If they are accused of (or a court issues an order for the opening of a trial for) allegedy committing any crime or are involved in disclplinary proceedings involving a serious or very serious fault at the instance of the supervisory authorities.

d) If they receive a serious warning from the Audit and Committee due to infringement of their obligations as board directors.

e) When they are affected by circumstances in which their remaining on any such management bothes might creatle or reputation, or place its interests at risk. When such events or circumstances are well-known or public, the Appointments and Remuneration Committee, by agreement of the majority of its members, may request the resignation of the affected Board Director.

f) If the reasons (if any expressly exist) for which they were appointed cease to apply.

Resignation from these positions must be formally tendered in a letter addressed to all members of the Board of Directors. Board directors who, at the time of their appointment, do not hold any executive functions in the Company, or In another Group company, will not be able to perform any executives functions unless they first resign their drectorship, even though they may subsequently remain eligible for the position.

Nominee Board Directors must also tender their resignation the shareholder that appointed them sells its shareholder reduces its shareholding, a proportionally equivalent number of Nominee Board Directors that it has appointed must resign.

MAPFRE's Independent Board Directors must also tender their resignation when they have held office for 12 years in a row.

C.1.20 Are reinforced majorities required, aside from legal majorities, for any type of resolution?

[ ] Yes No [ V ]

If so, describe the differences.

C.1.21 Explain whether there are specific requirements, other than those regarding board directors, to be appointed chairman of the board.
[V] Yes No

Reguirements description

In accordance with the provisions of article 5 of the MAPFRE Board of Directors, the position of Chairman must go to an Executive Board Director who has the status of most senior management representative, and such a designation requires the favorable of the members of the Board of Directors.

C.1.22 Indicate whether the board regulations establish any age limit for board directors:

Yes (V)

11 No

ANNUAL REPORT ON THE CORPORATE GOVERNANCE OF PUBLICLY TRADED COMPANIES

	Age limit
Chairman	65
Managing Director	65
Board Director	70

C.1.23 Indicate whether the board's regulations establish a limited mandate or other stricter requirements than those legally provided for independent board directors, other than that established in the regulations:

[ ] Vec

No [ √ ]

C.1.24 Indicate whether the bylaws or the regulations of the board of directors establish specific regulations for delegating votes on the board of directors in favor of other board directors, how to do it, and in particular, the maximum number of delegations a board director may have, as well as whether any limit has been established regarding the categories in which it is possible to delegate, beyond the limits imposed by legislation. If so, describe such regulations briefly.

There are no specific regulations for delegating votes on the Board of Directors.

C.1.25 Indicate the number of meetings the board of directors has held during the fiscal year. Where applicable, indicate how many times the board has met without the chairman in attendance. In calculating this number, attendance shall mean proxies given with specific instructions.

Number of board meetings	10!
Number of board meetings not	01
attended by the chairman

indicate the number of meetings held by the lead board director with the rest of the board directors, without the assistance or representation of any executive board director:

Number of meetings

Indicate the number of meetings the board's different committees have held during the fiscal year.

	Number of meetings of the STEERING COMMITTEE
10	Number of meetings of the AUDIT AND COMPLIANCE COMMITTEE
	Number of meetings of the APPOINTMENTS AND REMUNERATION COMMITTEE
	Number of meetings of the RISK COMMITTEE

246

ANNUAL REPORT ON THE CORPORATE GOVERNANCE OF PUBLICLY TRADED COMPANIES

C.1.26 Indicate the number of meetings the board of directors has held during the fiscal year and the attendance information of its members:

Number of meetings with in person attendance of at least 80 percent of board directors	10
% of attendance over total votes during the year	100.00
Number of meetings with in person attendance, or representations made with specific instructions, from all board directors	10
% of votes cast with in person attendance and representations made with specific instructions, on total votes during the fiscal year	100.00

C.1.27 Indicate whether the individual and consolidated annual accounts presented to the board for formulation were certified beforehand:
- [ V ] Yes
- No 【】

Where applicable, identify the person(s) who certified the individual and consolidated annual accounts to be drawn up by the board:

Name	Position
MR. FERNANDO MATA VERDEJO	FINANCIAL GENERAL DIRECTOR
MS, MARÍA LUISA GORDILLO GUTIÉRREZ	GENERAL DIRECTOR OF THE CORPORATE AREA OF INTERNAL AUDIT
MR. CARLOS BARAHONA TORRIJOS	ASSISTANT GENERAL DIRECTOR OF CONTROL AND FINANCIAL INFORMATION

C.1.28 Explain the mechanisms, if any, established by the board of directors to prevent the individual and consolidated accounts that it draws up from being presented to the Annual General Meeting with reservations in the audit report.

The company has never issued financial statements with reservations in the auditor's report.

The company has Corporate Finances, General Counsel and Internal Audit Areas to Christe of the annual areasted systems and cranded systems on dealers in 2001 The company nas Corporate Hilances, seleral Coulset the Inc. news to the Board for the Board for the Board for the Board for the Borded supervisory powers in 2000.
MAPPRE Aud

Código seguro de verificación (CSV): xIvfjCSHJswnKZUFv5fe	COPIA ELECTRONICA
Esta es una copia auténtica imprimible de un doumento electrónico archivado por la CNMV, según el atticulo 27.3 c) de octubre. Su autenticidad puede ser contrastada a través de la siguiente dirección: https://sede.cnmv/LibreAcceso/CSV.aspx

ANNUAL REPORT ON THE CORPORATE GOVERNANCE OF PUBLICLY TRADED COMPANIES

According to article 25 of the Regulation of the Board of Directors of MAPRE, the Board of Directors must aways country increations, the Chairman of According to arche 25 of the Regulation of Drieders, when be Board Considers that the mailten hands mailten its ordering of them many of the EXEFMal Audition has no reservating the man and scope of the discrepances that may have led to these reservations or provisos.

C.1.29 Is the board secretary a board director?

【】【 Yes
[ v ] No

If the secretary does not have the status of board director, complete the following table:

Name or company name of the secretary	Representative
MR. ANGEL LUIS
DAVILA BERMEJO

C.1.30 Indicate the specific mechanisms established by the company to preserve the independence of the external auditors, as well as, if any, the mechanisms to preserve the independence of the financial analysts, the investment banks and the rating agencies, including how they have implemented the legal provisions in practice.

In addition to abiding by statutory provisions in the company has and a number of be newt a number of general gulter a bard of Directors In addition to addity provisions, the Company his defect of vorhandly proposed as in vices in anocated by the MAPRE Board of Directors precisely and the following criteria in respect of the relationship with external auditors:

The relationship of the Board of Directors with the Company's External Auditor shall be maintained through the Audit and Compliance.
The Board of Directors shall refrain from the receive or that will receive or that will free from the Group when the Extrant be Group paid the Extrant be Group paid the Ext - The Board of Directors Silan Francis nims the receive of the receive of the vint vill read to annual memor and the External Auditor for the various services it provided.

Apart from the Audit and Complance Committees powers and fine bylaws and the bylans and the Bard of Drecors Regulation fees Apple form the Radic and Compilence of all services rendered by the external auditor and their corresponding fees.

Every year, the Audt and Compliance Committee assesses the Accounts Audit and the extent and the sinces are competible with the autitors Every year, the Audit and Continuee essesses the Rebanis Ration of the Sope of the Saving Are compatible with the auditors

independence. independence.
Futhernore, the Audt and Compliance of the independence of the extenal auditor in relation the auditor Furthernole, the Audicano Committee vermittee vermittee the industrial report on the independence of the auditor.
from it the declaration of its independence and issuing the

In accordance with the provisions of the Line of Conduct regarding listed securities which sets out the procedure re the problem to the public is the public is the public at In accordance with the provisions of the Internal code of Condition in the seat new of the may and is not available to the public at large.

C.1.31 Indicate whether the Company changed its external auditor during the fiscal year. If so, identify the incoming and outgoing auditors:
- [ ] Yes
- [ v ] No

ANNUAL REPORT ON THE CORPORATE GOVERNANCE OF PUBLICLY TRADED COMPANIES

If there were disagreements with the outgoing auditor, explain the grounds.

	Yes
1	No

【】【 [ √ ]

C.1.32 Indicate whether the audit firm does other work for the company and/or its group other than the audit. If so, declare the amount of fees received for such work and the percentage of such fees in the total fees charged to the company and/or its group:

IV 1 Yes No 【】【

	Company	Group companies	Trotal
Amount for work other than audit (thousands of euros)	173	1,438	1,611
Amount from jobs other than audit / Amount audit jobs (in percentage)	35.03	19.94	20.91

C.1.33 Indicate whether the audit report on the annual financial statements for the previous fiscal year contained reservations or exceptions. If any, indicate the reasons given to the shareholders at the Annual General Meeting by the Chairman of the Audit Committee to explain the content and scope of said reservations or exceptions.

【】【 Yes

[ √ ]

C.1.34 Indicate the number of fiscal years during which the current audit firm has been continuously performing the audit of the individual and/or consolidated annual accounts of the company. Indicate the percentage of the number of fiscal years audited by the current auditing firm to the total number of fiscal years in which the annual financial statements have been audited:

	Individual	Consolidated
Number of fiscal years underway	5	5
	Individual	Consolidated
Number of fiscal years audited by current audit firm/number of fiscal years the company or its group has been audited (in percentage)	16.66	16.66

C.1.35 Indicate and, where applicable, give details on the existence of a procedure for board directors to obtain the information they need to prepare the meetings of the management bodies in sufficient time:

[ v ]	Yes
[ ]	No

हम के बाद में बाद में बाद में बाद में बाद में बाद में बाद में बाद में कि में में में में में में में में में में में में में में में में में में में में में में में में में

ANNUAL REPORT ON THE CORPORATE GOVERNANCE OF PUBLICLY TRADED COMPANIES

Details of the procedure
In accordance with the provisions of the Board of Directors, the meding shall always include the agenda, which shall be established by the Chairman, and shall be accompanied by the appropriate information on the matters to be discussed, and duly prepared.
The agenda will be chrulated to all members at least five meeting and will specifically state those items that are for information purposs and those that require a Board resolution. The doculated anong members at least three days ahead of the meeting, to allow for due analysis and study of the same by board directors.
The Chairman of the Board of Directors, as the effective operation thereof, shall take the necessary measures to ensure that the Directors receive sufficient information in advance of the meeting on the items on the agenda.
In addition, Directors are vested with the broadest powers to obtain information on any aspect of the Company, to examents and other background on social operations. This right to information is extent necessary to enable the effective performance of their duties by the board directors.
This aspect is subject to a specific analysis by the Board of Directors of the Company in its annual self-evaluation session.
C.1.36 Indicate and, where applicable, give details on whether the company has established rules obliging board directors to inform and, where applicable, to resign in those cases that may harm the company's credit and reputation:
Yes [ V ]
No
Explain the rules

The board directors must place their office(s) at the Board of Directors, both as board directors and any other position they might hold on any Committee or Steering Committees thereof, and formalize any resignation, should the Board deem it necessary, in the following cases:
- Whenever they are removed from the executive office associated with their appointment as a member of these governing bodles.
- Should they become subject to any disqualification or prohibition lald down under law.
- If they are accused of (or a court issues an order for the opening of a trial for) allegedly commtting any crime or are involved in disciplinary proceedings involving a serious or very serious fault at the instance of the supervisory authorities.
- If they receive a serious warning from the Audit and Compliance Committee due to infringement of their obligations as baard directors.
- When they are affected by circumstances that might harm the company's credit or reputation or place its interests at risk were these governing bodies. When such events or circumstances are well-known or public, the Appointments and Remuneration Committee, by agreement of the majorly of its members, may request the resignation of the affected board director.
- If the reasons (if any expressly exist) for which they were appointed cease to apply.
C.1.37 Indicate whether any member of the Board of Directors has informed the company of being sued or having any court
proceedings opened against him or her for any of the offenses listed in article 213 of the Companies Act.

[ ] Yes

[ v ]

ANNUAL REPORT ON THE CORPORATE GOVERNANCE OF PUBLICLY TRADED COMPANIES

C.1.38 List the significant resolutions adopted by the company and that take effect, are amended or conclude in the event of a change in control of the company on account of a public takeover bid, and its effects.

There are no significant resolutions adopted by the company and that take effect, are amended or conclude in the company on account of a public takeover bid.

C.1.39 Identify individually, when referring to board directors, and in aggregate form in all other cases and indicate, in detail, resolutions between the company and its administrative and management positions or employees that provide indemnification, guarantee clauses or shielding, when they resign or are dismissed unfairly or if the contractual relationship is terminated on the occasion of a public invitation to tender or other transactions.

Number of heneficiaries	0
Beneficiary type	Description of the resolution
N/R	The term of the contracts of the executive directors is related to their time as an executive director. Removal from this position entails the lifting of the suspension of the relationship prior to the appointment as such. Executive directors must have an exclusive relationship with the company, and there are no contractual conditions relating to post-contractual non-competition agreements or continuity of service. Early termination of the previous relationship entails indemnification under the terms established in the workers' statute in relation to unfair dismissal, except where there is good cause for dismissal. In the event of an early termination decided by the Company, the latter must notify the board director of the termination with a notice period of three (3) months with respect to the date of termination. Contracts governing the prior relationship establish the termination of this relationship as January 1 of the year after which the board director reaches the age of 60, unless annual extensions are implemented at the initiative of the company until the date on which the executive reaches the age of 65, as a maximum. There are no clauses related to signing bonuses.

indicate whether, other than the cases stipulated in the regulations, these contracts have to be communicated and/or approved by the bodies of the company or its group. If so, specify the procedures, foreseen assumptions and the nature of the bodies responsible for approving or communicating them:

	Board of Directors	Annual General Meeting
Body authorizing the clauses
	Ses	No
Is the Annual General Meeting informed of the clauses?		V

ANNUAL REPORT ON THE CORPORATE GOVERNANCE OF PUBLICLY TRADED COMPANIES

C.2. Board of Directors' Committees

C.2.1 List all the Board of Directors' committees, their members and the percentage of executive, nominee, independent and other external directors that compose them:

STEERING COMMITTEE
Name	Position	Category
MR. ANTONIO HUERTAS MEJÍAS	CHAIRMAN AND CEO	Executive
MR. IGNACIO BAEZA GOMEZ	VICE CHAIRMAN	Executive
MS. CATALINA MIÑARRO BRUGAROLAS	VICE CHAIRMAN	Independent
MR. JOSÉ ANTONIO COLOMER GUIU	MEMBER	Independent
MR. LUIS HERNANDO DE LARRAMENDI MARTINEZ	MEMBER	Nominee
MR. ANTONIO MIGUEL-ROMERO DE OLANO	MEMBER	l Nominee

% of executive board directors	33.33
% of nominee board directors	33.33
% of independent board directors	33.33
% of other external board directors	0.00

Explain the functions that this committee has attributed, and describe the procedures and rules of organization and operation thereof. For each of these functions, indicate its most important actions during the fiscal year and how it has performed in practice each of the functions attributed to it, whether in the bylaws or other corporate agreements.

Is the delegate body of the Board of Directors, responsible for the executive management of the strategic and operations Is alle duegate both of the board of the of its subsidiaries. It also makes any decisions necessary for proper operation. It has the general capacity of decision and has been expressly delegated all the powers that correspond to the end may not be delegated by legal imperative or, where applicable, by express provision in the Regulations of the Board of Directors of MAPFRE S.A.

A maximum of 10 members of the Board of Directors. Its Chairman, First and Second Vice Chairmen and Secretary will automatically be members A maximall of 20 hillned of the new owth a favorable vote from two-thirds of the members of the Board of Drectors.

During the 2019 fiscal year, the Steering Commiliar with the economic internation of the Company on the Company and the Croup, authorizing with beling the 2015 the Steeling Connections, and buses and states and states than the man be reallier with of neather of greating and the oculation and disposition of accessed of an arrosses companies, and being familiar with the purchase of MPFRE shares by members of governing and management bodies, among other things.

AUDIT AND COMPLIANCE COMMITTEE
Name	Position	Category
MS. ANA ISABEL FERNÁNDEZ ALVAREZ	CHAIRWOMAN	Independent
MR. JOSE ANTONIO COLOMER GUIU	MEMBER	Independent
MR. ANTONIO MIGUEL-ROMERO DE OLANO	MEMBER	Nominee
MS. MARÍA DEL PILAR PERALES VISCASILLAS	MEMBER	Independent

ANNUAL REPORT ON THE CORPORATE GOVERNANCE OF PUBLICLY TRADED COMPANIES

Explain the functions, including, as the case may be, those legally provided, that this committee has attributed, and describe the procedures and rules of organization and operation thereof. For each of these functions, indicate its most important actions during the year and how it has performed in practice each of the functions attributed to it, whether in the law, in the bylaws or other corporate agreements.

The Audit and Compliance Committee has the following responsibilities:

a) To apprise the Annual General Meeting of matters that are the responsibility of the Committee and, in particular, regarding the results of the audit, explaining how the committee has contributed to the integrity of the financial information and role that in said process.

b) To supervise the efficacy of internal controls and risk management systems, as well as discussing with the External Audtor any significant weaknesses Identified in the internal control system in the course of audits.

c) To supervise the process for drawing up and present recommendations or present recommendations or proposals to the Board of Directors with a view to safeguarding its integrity.

d) Bringing before the Board of Directors the proposals for the selection,

appointment, re-election and substitution of the External Auditor, being accountable for the perfinent legistation in force, as well as the conditions of his/her hiring and regularly gather from him/her information regarding the audit plan and its execution.

e) To establish appropriate relationships with the External Auditor in order to receive information concerning those issues which may jeopardize their lor occasioner op the they may be examined by the Committee, and any other issues relating process, and where appropriate, authorizations for services other than the terms contemplated in the corresponding legislation currently in force for auditing accounts, for the regime of independence, as well as other communications envisaged in account auditing standards.

f) To issue a yearly report, prior to the accounts audit report, expressing an opinion concerning whether the independence of the External Auditor has been compromised.

g) To ensure that, as far as possible, the External Auditor of the Group takes responsibility for auditing all the companies belonging to it.

h) To ensure the independence and efficacy of the Internal Audit; to propose the selection, appointment and removal of the most senior management, as well as its annual budget; to receive regular information on its activities; and to check the conclusions and recommendations of its reports into account.

I) To Inform the Board of Directors in advance on all matters provided in the law, the Corporate Bylaws and Board of Directors Regulations.

() To establish and supervise a mechanism that enable semployees to communicate confidentially any irregularties they notice within the company that may be of potential importance, especially financial and accounting irregularities.

k) To verify the application of the established good governance regulations at all times.

I) To supervise compliance with internal regulations, especially with internal codes of conduct, regulations and procedures for the prevention of money laundering and financing terrorism, as well as making proposals for their improvement.

m) To supervise the adoption of actions and measures reports or actions taken by administrative supervision and control authorities.

n) Any other responsibilities which may be assigned by the Board of Directors or attributed to it in the Regulations of the said body.

The Committee is made up of a minimum of thee and a maximum of five members, all of which must be non-executive, and the majority of which must be independent directors, one of which must be designated based on his or her knowledge and experience in the area of accounting, audting or both. Overall, the members of the Committee should have the pertinent technical knowledge in relation to the company's sector of activity. Its Chairman must be an end members on the elommation in this position every four years, only to be reelected to the post one year after hater the selection that ensition. The Secretary of this Committee will be the secretary to the Board of Directors. The Group Chief Internal Audit Officer shall attend the meetings as a auest.

In 2019 the Audit and Compliance Committee was responsible for, anong other things, issuing an opinion of the Annual of Chinan II american to Angerish the Presses the Photos the efficacy of the Company's internal cortrol, supervand its Group in the franework of Sovency II, supervising the internal audit and the risk management systems of the Group, reporting on transactions with significant shareholders and sehver many back and the hor halled of the belief of the belief with the External Auditor, being familiar with appointents in Internal Audit and oppromission the rearler in interne reporting on Frides Spanish National Securities and Exchange Commission, and ensuring the correct application

153

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ANNUAL REPORT ON THE CORPORATE GOVERNANCE OF PUBLICLY TRADED COMPANIES

within the company and Group of the good governance rules and external and internal regulations.

For more Information, please check the Report on the Compittee during fiscal year 2019, available on the Company's website, which is made available to shareholders for the Annual General Meeting.

ldentify the members of the audit committee that have been appointed taking into account their knowledge and experience in accounting, auditing or both and report on the date of appointment of this committee in such position.

Names of experienced board directors	MS. ANA ISABEL FERNANDEZ ALVARE / MR. JOSE ANTONIO COLOMER GUIU
Date of appointment of the chairman in the position	8/18/2019

APPOINTMENTS AND REMUNERATION COMMITTEE
Name	Position	Category
MS. CATALINA MIÑARRO BRUGAROLAS	CHAIRWOMAN	Independent
MR. JOSÉ ANTONIO COLOMER GUIU	MEMBER	Independent
MR. LUIS HERNANDO DE LARRAMENDI MARTÍNEZ	MEMBER	Nominee
MR. ALFONSO REBUELTA BADÍAS	MEMBER	Nominee

0.00	% of executive board directors
50.00	% of nominee board directors
50.00	% of independent board directors
0.00	% of other external board directors

Explain the functions, including, as the case may be, those additional to those legally provided, that this committee has attributed, and describe the procedures and rules of organization thereof. For each of these functions, indicate its most important actions during the year and how it has performed in practice each of the functions attributed to it, whether in the law, in the bylaws or other corporate agreements.

The Appointments and Remuneration Committee is the delegate body of the Boardinated development of appointment and remuneration polycy regarding the Board Directors and Senior Management of the Group.

It has the following responsibilities:

a) To evaluate the balance of skills, knowledge and experience required on the Board, defining the functions and capabilities required of the candidates to fill each vacancy accordingly and deciding the time and dedication necessary for them to properly perform their functions.

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ANNUAL REPORT ON THE CORPORATE GOVERNANCE OF PUBLICLY TRADED COMPANIES

b) To establish a representation target for the gender least represented on the Board of Directors and to draw up guidelines on how to achleve this target.

c) To bring before the Board of Directors the appointment Board Directors for them to be designated by co-opting or for them to be subject to the decision of the Annual General Meeting, as well as proposals for reapointment or renoval, and to report on cases related to proposals that affect the remaining Board Directors.

d) To notify proposals for the appointment and termination of senior managers and their basic contractual conditions.

e) To examine and organize the succession of the Board, and where appropriate, to make the corresponding proposals to the Board so that this succession is orderly and well-planned.

f) To propose to the Board of Directors the remuneration policy for Board Directors and general managers or anyone who performs executive management functions under the direct control of the Steering Committee or the Managing Directors, as well as individual remuneration and other conditions of the contracts of Executive Board Directors, ensuring their enforcement.

g) To propose to the Board of Directors the candidates for Fustees whose appointment is the responsibility of the Company.

h) To authorize the appointment of External Directors in the other Group companies.

The Committee is nade up of a minimum of three and a maximum of five members, all of whom must be non-executive, and at least two of whom must be Independent Directors. The Chairman must be an Independent Board Director. The Secretary of the Board of Dhe Committee.

In 2019 the Applintments and Remuneration Committee was responsible for, among other things, reporting on the appointments and removals of board alrectors and executives, reporting on the Chairman's actions during fiscal year 2018, bringing before the re-election proposals concerning the independent board directors, proposing to the Board of Directors the Compensation Policy for Directors and the Medium-Term Incentive Plan 2019-2021, approving the salary remuneration of Senior Management for flegarding of persion commitments, approving the granting of mates and proposing to the Board of Directors candidates for the appolntment of Fundactor MAPFRE Trustees.

For more information, please check the Report on the Committee during fiscal year 2019, available on the Company's website, which Is made available to shareholders for the Annual General Meeting.

RISK COMMITTEE Position Category Name MR. JOSÉ ANTONIO COLOMER GUIU CHAIRMAN Independent MS. ANA ISABEL FERNÁNDEZ ÁLVAREZ MEMBER Independent Nominee MR. ANTONIO MIGUEL-ROMERO DE OLANO MEMBER MR. ANTONIO GÓMEZ CIRIA MEMBER Independent

% of executive board directors	0.00
% of nominee board directors	25.00
% of independent board directors	75.00
% of other external board directors	0.00

This delegate body of the Board of Directors supports and advises the Board on the Group's risk management polices and on the determination of susceptibility to risk and the risk strategy.

It has the following functions:

ANNUAL REPORT ON THE CORPORATE GOVERNANCE OF PUBLICLY TRADED COMPANIES

a) Provides support and advice to the Board of Directors in the risk policies of the Group and In the determination of the susceptibility to risk and the risk strategy.

b) To assist the Board of Directors in overseeing the application of the risk strategy.

c) To be familiar with and assess the risk management methods and tools, monitoring the models and validation.

The Committee will be made up of a minimum of the members, all of whom must be non-executive, and at least two of whom must be Independent Board Directors. The chairman must be an Independent Board of Directors must designate a Secretary, a position which need not be filled by a Board Director. The Senior Director who oversees the Group's risk area will attend the Committee as a guest.

During flscal year 2019, the Risk Committee was responsible, among other things, for the solvency position of the Company and its subsidiaries, for the review of the policies approved by the framework of Solvency II, and for the determination of risk propensity and risk strategy.

C.2.2 Complete the following table with information related to the number of board directors who have belonged to Board of Directors' Committees at the closing of the last four fiscal years:

	Number of female board directors
	Fiscal year 2019		Fiscal year 2018		Fiscal year 2017		Fiscal year 2016
	Number	0/0	Number	0/0	Number	0/0	Number	0/0
Franch Electric COMMENER	1	16.67	1	16.67	1	12.50	1	10.00
AUDIT AND COMPLIANCE 60 M TERES	2	50.001	2	50.00	2	40.00	2	40.00
PPOINTMENTS AND REMUNERATION COMMENTER	1	25.00	ﻠﺴﻠﺔ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ ﺍﻟﻤﺘﺤﺪﺓ	25.00	2	50.00	2	50.00
RISK COMMENTE	1	25.00	1	25.00	1	20.00	0	0.00

C.2.3 Indicate, where applicable, the existence of regulations for the board committees, where they can be consulted and any amendments made to them during the fiscal year. Indicate whether an annual report on the activities of each committee has been drawn up voluntarily.

STEFRING COMMITTEE

The regulation of the Steering Committee is Included in the company's bylaws (article 21) and in the Board Regulations (articles 9 and 13). These documents, as well as the composition of the Committee, are always available for consultation on the company's website, www.mapfre.com.

In fiscal year 2019, Article 9 of the Regulations for the Board of Drectors was modified in order of annual meetings to be held by the Steering Committee.

The Steering Committed a report on Its own functioning to the Board of Directors in fiscal year 2019.

AUDIT AND COMPLIANCE COMMITTEE

The regulation of the Audit and Complance Committee is included in the company's bylaws (articles 10 and 13). These documents, as well as the composition of the Committee, are always availation on the company's website, www.mapfre.com.

In fiscal year 2019, article 2 of the Regulations for the Board of Directors was modified in order to include the new non-delegable competence of the Board of Directors introduced by Law 11/2018, of December 28, which modifies the Commercial Code, the

Oficina: ROD MADRID Registro de Entrada Nº: 2020018771 Fecha de registro: 2020-02-12 01:18:30

CNMV

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The English version is a translation of the original in asse of discrepancy, the Spanish version shall prevail.

ANNUAL REPORT ON THE CORPORATE GOVERNANCE OF PUBLICLY TRADED COMPANIES

Recast Text of the Companies Law approved by Royal Legislative Decree 1/2010, of July 20, on Account Auditing, regarding nonfinancial information and diversity.

The Audit and Compliance Committed a report on its functioning in fiscal year 2019 to the Board of Directors.

APPOINTMENTS AND REMUNERATION COMMITTEE

The regulation of the Applintments and Remuneration Committee is included in the company's bylaws (article 23) and in the ward markets and The regaded or the reportion of the Committee, are always available for consultation on the company's website, www.mapfre.com.

No changes have been made to the operating system of the Appointments and Remuneration Committee.

The Applintments and Remuneration Committed a report on the functioning of the Appointments and Remuneration Committee for fiscal year 2019 to the Board of Directors.

RISK COMMITTEE

The regulation of the Risk Committee is Included in the company's bylaws (article 24) and in the Board Regulations (articles 12 and 13). These documents, as well as the composition of the Committee, are always available for consultation on the company's website, www.mapfre.com.

In fiscal year 2019, atticle 12 of the Regulations was modified in order to elimlinate references to the Committee's old functions in terms of compliance.

The Risk Committed a report on the functioning of the Risk Committee for fiscal year 2019 to the Board of Directors.

257

ANNUAL REPORT ON THE CORPORATE GOVERNANCE OF PUBLICLY TRADED COMPANIES

D. RELATED-PARTY TRANSACTIONS AND INTRA-GROUP TRANSACTIONS

D.1. Explain, where applicable, the procedure and competent bodies for aproving related-party and intra-group transactions.

MAPFRE has a policy for managing conficts of interest and related on with significant shareholders and senior representative or management positions, which regulates the procedure to be followed in relation to related-party transactions.

The Board of Directors shall be familiar with the Company, directly, with Board Directly, with Board Directors, with significant shareholders or shareholders represented on the Board of Drectors, or with persons related to them, and these transactions by the Board of Directors, after receiving a report from the Audit and Compliance Committee, unless they are transactions that are part of the normal or ordinary activites of the partles concerned, which are under normal market conditions and for amounts that are insignificant or irrelevant to the Company.

Significant shareholders, board directors and senior must inform the secretary of the Board of Directors of MAPPRE in writing regarding any ransaction that they or individuals associated with this last case, whenever the affected person is aware of it) intend to conduct with MAPRE or with any other company of Its Group and which constitutes a related-party transaction by the Board of Drectors.

The notification must include sufficient information on the transaction to make it possible for MAPRE to properly identify it.

D2. List any significant transactions between the company or its Group company's significant shareholders which are relevant due to their amount or subject matter:

Name or company name of the significant shareholder	Name or company name of the company or Group company	Nature of the relationship	Type of 12 2 2 5 3 0 1 0 1	Amount (thousands of euros)
CARTERA MAPFRE, S.L. SINGLE- MEMBER COMPANY	MAPFRE S.A.	Corporate	Dividends and other profits distributed	304,568

D3. List the transactions between the company or Group company's associates or executives which are relevant due to their amount or subject matter.

Name or company name of the associates or executives	Name or company name of the related party	Link	Nature of the transaction	Amount (thousands of euros)
No data				N/R

ANNUAL REPORT ON THE CORPORATE GOVERNANCE OF PUBLICLY TRADED COMPANIES

DA Report on the significant transactions in which the company has engaged with other companies belonging to the same group, as long as they are not eliminated in the process of drawing up the consolidated financial statements and are not part of the company's usual trade with respect to its purpose and conditions.

In any case, report any intra-group transaction carried out with companies established in countries or territories which have the consideration of tax haven:

Company name of the Group company	Brief description of the transaction	Amount (thousands of euros)
No data		N/R

D.5. Detail the significant operations carried out between the company or Group companies and with other related parties, which have not been informed in the previous sections:

Company name of the related party	Brief description of the transaction	Amount (thousands of euros)
No data		N/R

D6. List the mechanisms in place to detect, determine and resolve possible conflicts of interest between the company and/or its Group, and its board directors, executives and/or significant shareholders.

All board directors and executives must make a Prior Declaration with regard to these matters at the time of they are required to update this declaration on a regular basis, and whenever a potential situation of conflict arises.

Additionally, the internal code of conduct and the polky for managing conflicts of interest and relations with significant shareholders and senior representative or management positions regulate the special obligations relating to potential conflicts of interest.

The Board of Directors has the final decision on these issues. There is a special of realities with rearctions with reast to matters where The Board of Interest with a board director. The board director in question must refrain from attending or participating in these decisions.

D.7.

Yes [ ]
[ √ ] No

ANNUAL REPORT ON THE CORPORATE GOVERNANCE OF PUBLICLY TRADED COMPANIES

E RISK CONTROL AND MANAGEMENT SYSTEMS

E.1. Explain the scope of the Risk Control and Management System of the company, including taxation:

The MAPFRE Group has a Risk Management System (RMS) based on the continuous and Integrated management of each of the rne The Prize Drap not Tisk to the established strated objectives, consolidating said management by area, business unt, activites, subsidiaries, geographical areas and corporate support areas,

The different types of risks have been grouped under four areas, or categories, as described below:

Insurance Activity Risks: This groups together, separately for Life, the risk of premium shortfals and insufficient technical and catastrophe provisions.
Financial and Credit Risks: This includes interest rate, liquidity, exchange rate and credit risks.
Strategic Risks and Corporate Governance: This and corporate governance risks as well as risks related to the organizational structure, alliances, mergers and acquisitions derived from the regulatory environment, including those of a tax nature, and competition risks.
Operational Risks: This includes possible loses arising from the unsultability or malfunction of Internal processes, personnel or systems, or arising from external events (not including risks arising from strategic decisions or reputational risk).

Operational Risks include the risk of non-complance that of material financial sanctions and losses as a result of non-compliance with the and epertal laws, regulations and standards, as well as the risks of fiscal non-compliance (risks of discrepancies in the interpretation of the determination of market prices between related companies).

E.2. I dentify the bodies of the company which are responsible for the preparation of the system for the control and management of risks, including of a tax nature:

The internal control and risk management systems are into the organizational structure of the Group according to the tirree-lines-of-defense model, so that all the staff of the organization are assigned responsibilities for the control and risk management bbjectives.

The Board of Directors is ultinately responsible offectiveness of the internal control and risk management systems. It is its sole competence to determine the general policies and in particular the policy for the identification, management and control of risks, and the supervision of internal information and control systems.

The Steering Committee is the delegate body of the executive management and permaner supertision of the ordinary on the leagues while by leagues while rne occinities to the debare soo persional aspects, and acts with all its powers except that entry of Marce C M or, where appropriate, by express provision in the company's bylaws or in the Regulations for the Board of Directors of MAPFRE S.A.

The Risk Committee has the following functions:

To support and advise the Board of Directors on the definition and evaluation of the risk policies of the Group and on the susceptibility to risk and the risk strategy.
To assist the Board of Directors in overseeing the implementation of the risk strategy.
To be famillar with and assess the risk management methods and tools, monitoring the models applied regarding results and validation.

The Audt and Complance Committee is the delegate body of the Board of Directors with the responsibility of overselige withterently. The mate and the risk management systems; mortoring the development and presentation of financial information, establishing supplited matural niterital dualt the fist handigation of good governance stadards; and monitoring complance with internal and external regulations, in particular internal codes of conduct and the rules and procedures for the prevention of money laundering and financing of terrorism.

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E3. List the main risks and, to the extent that they are significant, those derived from corruption (understood within the scope of Royal Decree Law 18/2017), which may impact the achievement of business objectives:

1. Insurance Activity Risk

The organization of MAPFRE, specializes lines, requires then to be highly autonomous in the management of their business, in particular in terms of underwriting and tariff fixing, as well as the indemnification or provision of services in case of incident.

The adequacy of premiums is an element of particular importance and its determination is supported by spectic computer applications. The adequacy of The daugues of provisions are and are basic principles of insurance management. Technical provisions are estimated by the actuatial teams of the different companies and their and the mark that did not participate in the calculation. The relevance of the personal damage business in MAPFRE, with a rapid settlement of claims,

as well as the low insortance of long-term Insured risks (such as asbestos or professional liability) are mitigating of technical provisions.

MAPFRE operates in countries highly prone to disasters (earthquakes, etc.), which calls for special treatment of these types of risk. Exposed r an the access to specialized catastrophic exposure analyses, which are generally prepared by independent experts, which estope of resess should a catastrophic event occur. Underwriting catastrophic risks is undertaken and the economic capital available to the underwriting company. Where appropriate, the equity exposure to these types of risk is mitigated by taking out specific reinsurance coverage.

In this regard, it is important to highlight the contribution of MAPFRE RE, which brings to the management of the market of catastrophic risks, determining annually the global by territory and establishing the maximum underwriting capabilities per risk and event. MAPFRE RE also has risk retrocession programs to cover deviations or increases in the catastrophic loss ratio in different territories.

MAPFRE's policy regarding reinsurance risk is to reinsurers of proven financial capacity that meet the credit quality conditions set out h hat has pours Reinsurance Pollow Business is ceded to other reinsurers on an exceptional basis after an internal analysis verifying the possession of a solvency margin equivalent to the aforementioned classification or if adequate guarantees are provided.

Financial and Credit Risks

MAPFRE mitigates its exposure to this type of risk by means of a prudent investment policy characterized by a high proportion of hied income securities.

Four different types of portfollos are managed within the investment portfolio:

Those that seek strict immunization from the obligations deriving from insurance contracts.
Portfolios that cover unit-Ilnked policles made up of assets whose risk is assumed by the policyholders.
Those that look to exceed the guaranteed return for the policyholders within prudential parameters, such as portfollos with profit sharing.
Open-management portfolios where the active management is only conditioned by legal rules and internal risk limits.

In the first case, the immunized portfolios minimation techniques based on the maching of flows or durations.

In the second case, portfolios that cover the unit-linked policles are made up of financial instruments whose risk is assumed by the policyholders.

A certain degree of market risk is accepted in the remaining portfollos, as set out below:

The variable of interest rate risk management is the modified duration that is conditional on the Imvestment Plan.
Exposure to the exchange rate risk is minimal in the case of insurance llabilittes. The Transferable Security and Real Estate Investment Plan establishes be maximum net position limit in currencies that can be adopted in asset management.
Investments in shares are subject to a maximum limit of the investment portfolio.
The risk limitations are established in easily observables. However, a risk analysis in probablistic terms is carred out in accordance with past volatility and correlations.

ANNUAL REPORT ON THE CORPORATE GOVERNANCE OF PUBLICLY TRADED COMPANIES

With regard to credit risk, the pollcy is based on applying criteria of prudency and seeking a high degree of geographical correspondence between the issuers of the assets and the commitments.

Thus, limits are established according to the counterparty or the investment instrument and in relation to the sovency of the counterpary, and there is a system for monitoring and reporting the exposure to credit risk.

The Security Committee also reviews the main exposures to insurance counterparties. [THE INFORMATION IN THIS SECTION

CONTINUES IN SECTION H.1 OF THIS REPORT]

E.4. Identify whether the company has a tolerance levels for risks, including tax risks:

The Risk Appetite Policy of the MAPRE Group, approved by the Board of Directors of MAPFRE S.A., establishes the listence with bene me fish its business objectives with no relevations, even in adverse stuations. That level, which defines limits and sub-limits per risk type, constitutes the MAPFRE Group's Risk Appetite.

As one of its risk management objectives, the MAPRE Group strives to maintain an amount of eligible own funds at the consolidated level which is equivalent to a rarget solvency ratio of 200 percent of the solvency II, with a tolerance of 25 percentage points. A secondary instrument of the material of the materials on lite ellige to maintain a sufficient of economic capital at the consolidated level to meet its obligations in accordance with a rating of "A" or higher, or Its equivalent.

The prospective captal required of the insurance subsitiates is generally determhed pursuant to an estimation based on the following the fiscal year, and it is reviewed on a regular basis during the course of the year in iine with risk trends.

For metrics that quantify the agregate risks of the MAPRE Group, tolerance levels are established and risk exposure is montored through a measurement scale r of hitelitz data quanty its maximum limit: () green zone: risk that can be assumed and maintained with the movies the may we therence a baced of the lacked of the fish of requires monitoring and control measures; and lil) red zone: risk that exceeds the maximum tolerance and that requires the immediate adoption of control and mitigation measures.

The Governing Bodies receive information relating of the main risks to which the Group is exposed and the captal resources available to cover them, as well as information relating to compliance with the established Risk Appettte limits and other specific risk policles.

E5. Indicate the risks, including tax risks, which have arisen during the fiscal year:

During fiscal year 2019, a large industrial accident has been registered in MAPFRE RE (19.6 million euros net of reinsurance activity have materialized as a result of catastrophic events, for example, typhoons in Japan and heavy rains on the east one of event have a fover head hare macematic as the realise oplice the fiscal year (p.7.5 million euros), it should be noted that the relevance organces in the del prochton on feel process in the prospec signinount the Group maintains its complance with the legal solvery requirements and remains within the limits of the risk appette.

In addition, within the Financial and Credit Risks, there was an appreciation of the euro during fiscal year 2019 with respect to the main In document with and the croad the first has with the subsequent negative effect on the Group's shareholders' equily (through negative currency conversion differences) and operating results and cash flows in euros from the said subsidiaries.

E.6 Explain the response and supervision plans for the main company risks, as well as the procedures followed by the company to ensure that the board of directors responds to the new challenges that arise:

The integration of internal control and risk management structure is performed under the three-lines-of-defense model, assigning responsibilities regarding compliance with the internal control and risk management objectives according to the said model:

1) A first line of defense consisting of enployees and supporting operating areas which are responsible for mailling and t) in this the or celebe consisting of their day-to-day work. Therefore, they assume the research and to responsible there do and control of the cathed be as a in interest pare the risks associated with the processes that they carry out and they do not exceed established limits.

2) A second line of defense integrated by the key functions of risk, actuarial and compliance management and other insurance functions, which guarantee the operation of the internal control and risk management systems.

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3) A third line of defense consisting of Internal Audit in interest assessment of the suitability, acquirality, acquiractive measures in altreason in atmenses in a timely man 3) A thre of the of the of the name nation which carners on the paties resorsible for applying the corrective measures in a timely manner,
control and risk management system including senior management positions and governing bodies, as the case may be.

To ensure effective control and many of risks, MAPRE has a written policy on Internet policy of a senerally the massered to mittered to migrae to migrae to migrae to the To ensure ented filled and hands, inn 1 (i) the trinced and interest on one one envisaged to messures envisaged to mittgate the impact of the which (1) the and the Information and internal control systems to be used in relation to them are established.

The Risk Management Teams of the company of the set of strategies, processes and processes and procedures neessary to identify, measure, montor, The Kisk Handgenene reans of the companies of the entity is or may be exposed, as well as their Interdependencies.

The General Counsel and Corporate Legal Affars the Governing Bodes and the different Corporate Area and Business of anytration of current recultation of current recultation The General Coursel and corporate Legal Anterest of the Crises maters, both it the processes a polication of current crouledon of current crouledon and corporate dovice and actives the nie nie nie nieder in the exparte Tax Advisory Department, this corporate division has information
in the elaboration and provisions. Likevie regarding the tax risks detected in each country.

In any case, the actions to adopt regarding the risks identified are decided by the Board of Directors, which is Informed immediately of any risk which:

Depending on how it evolves, may exceed the established risk limits.
May lead to losses equal to or in excess of the established risk limits.
May endanger compliance with the solvency requirements or the continuity of the Group's operation.

The Group Risk Office provides assistance and advances and excutive Charman and excellive handement of the Group within the Linterenender, and compliances and complians The Group Kest office provins assistance and advises the Governing butter the consideration the interdependences, and complance with the limits established.

The foregoing includes the internal risk and solvent of the Group, as well as the reports requested by the Governing Bodles on certain risk areas.

In addition, the Group promotes of the lentification and assessment of risks and cortrost that throise that may be faced by the company throughout who In addition, the Group promotes offerent procedures for the issessment of fisks and clinitial and one for the may be feed by the company throughout the period set out in its business plan.

Likewse, the Group companies propation and reporting to the respective Governing Bodes of the perisonal reports of the personal reservers, LIKEWSE, the Group Companies promote the preparator and reports of monton'ng of incidents and operational risk events.
risks, which include, among others, risk control report

At the operational level, the MAPFRE Group also has the following key actions:

The MAFFRE Group has a Corporate Business Continuity Model developed by the Ulmate alle the ellemate aused. The model and the form of - The MAFFRE Group nat a high-impact inclerity of the conjunt the content encessed. The model acops the form of
provide a timely and effective response should a the citized provide a timely and elective response incuses incuses including the process and stuation and the avallability of the elements affected (employees, buildings, technology and providers).

affected (employees, bullings, lectricy office, which establishes the esponse and ins of action of the Ection of the Ecopies to micros in the Prospectives the rest of the ros The Corporate Anti-Fraud Plan, assoccornated by the Corpulates Security once, which expense to minimal bely effects in the most efficient way possible.

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ANNUAL REPORT ON THE CORPORATE GOVERNANCE OF PUBLICLY TRADED COMPANIES

F. INTERNAL RISK CONTROL AND MANAGEMENT SYSTEMS IN RELATION TO THE FINANCIAL REPORTING PROCESS (ICFR)

Describe the mechanisms that comprise control systems and risk management in relation to the issuing of financial information (ICFR).

F.1. Control environment of the company.

Report on the following, indicating the main characteristics:

F.11 Which bodies and/or functions are responsible for: (i) the existence and maintenance of an adequate and effective ICFR; (ii) its implementation; and (iii) its supervision.

The MAPRE Internal Control System takes the form of a set of continuous processes for which the MAPRE S.A. Board of Directors is ultimately responsible. The Board is assisted by the Executive Committee and the different units, companies, corporate areas and other departments as regards the implementation, update and montloring of the tasks and processes related to compliance with the objectives of the Internal Control System is inplemented across the organization through the three-ines-of-defense model, as indicated in the latest update to the Group's Internal Control Policy, approved by the Board of Directors on February 6, 2019.

The Regulation of the Board of Directors, which was amended and approved on December 13, 2019 Includes the fore Bard of Directors, the Steering Committee and other Board complance, Appointments and Remuneration, and Risk).

The Board of Directors delegates ordinary management to the steering Committee and the executive management, and reserves the approval of risk control and management policies and aproval of the periodic montoring of both internal information and financial information to be published, owing to its status as a listed company.

The Executive Committee is the body which, under mandate from the Board of Direct supervision over management of the Business Units and Corporate Areas and ensures the coordinated actions of the same.

On the other hand, the Audit and Compliance Committee, in its capactly as Delegate Body of Directors, has - In relation to the information and internal control systems - the power to, among other things: supervise the process of preparation and presentation of mandatory financial informations or proposals to the Board of Directors aimed at safeguarding their integrity; supervise the effectiveness of internal control, internal auditing and risk mater information, in advance, to the Board of Directors particularly in terms of financial information that the Company must publish periodically.

The document titled "Internal Audt Policy and Charter," in fiscal year 2019, was updated and approved by the Audt and Committee on December 11, 2018 and by the Board of Drectors on February 6, 2019, and sets out the main Internal Control System supervisory activities as well as those relating to the Solvency II Directive, conducted by the Audit and Complitee through the Corporate Internal Audit Area, which are listed in section F.5.1 of this document.

F.12 Whether there are, particularly relative to the procedure for the preparation of financial information, the following items:
- Departments and/or mechanisms in charge of: (i) the design and review of the organizational structure; (ii) the clear definition of lines of responsibility and authority, with an appropriate distribution of tasks and functions; and (lii) ensuring the existence of sufficient procedures for correct diffusion in the company:

The regulation on the Institutional Business and Organizational Principles of the MAPFRE Group, approved by the Board of MAPRE S.A. at Its meeting on June 24, 2015 and annended on February 7, 2017 with effect from March 10, 2017, is the minimum mandatory framework for all the companies making up MAPFRE and their respective governing bodies.

The Board of Directors reviews and authorizes the Group's organizational structure and approves the lines of responsibility and authority based on the organizational structure defined. During fiscal year only changes in the denomination of some corporate areas, which were approved in the Executive Committee of July 22, 2019, effective September 1, 2019. The new Management Organization Chart entered into force on that date.

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The distribution of function of scopes of activity/authority and of hierarchical levels are undertaken In line with the Organizational Structure Manual approved by the Corporate People and Organization Area.

Concordance between the organization of position is essential because it maps functions to reles and responsibilities, ensuring that business activities are conducted properly.

The Corporate Finance and Resources Area establishes the accounting policies and standards applicable for the coordination between the various Business Units and Corporate Areas in relation to the consolidated financial information procedure.

· Code of conduct, approval body, degree of diffusion and instruction, principles and values included (indicating if there are specific mentions to the registry of operation of financial information), body entrusted with analyzing noncompliance and recommending corrective measures and sanctions:

The Code of Ethics and Conduct was approved by the Board of Directors on July 25, 2019, replacing the one previously approved in 2017.

It alms to reflect corporate values and the basic principles that should guide the conduct of MAPFRE and its staff.

As at December 31, 2019, 20,875 employees worldwide have completed the one-hour e-learning course on the Code of Ethics and Conduct.

The content of the online course on the Code of Ethics and Conduct is currently being updated by 2020. However, this Code is public both on the Intranet and on the Group's website, and can be consulted by anyone who wishes to do so.

The Code sets out specific principles that are bind the processing of the Group's financial information so as to ensure its confidentialty, integrity and avallability in accordance with MAPFRE's data security standards. It also states that all employees are responsible for ensung that the information provided is accurate, clear and truthful.

To guarantee application of the Code, as well as supervision and control of this Committee is entrusted with ensuring its compliance and analyzing and resolving any complaints lodged as a result of its idetion. Any employee who has a query about the application of the Code, or who observes a stuation that might hvolve a breach or violent of any of the principles and rules of ethics or conduct, must report it to the Ethics Committee, which acts within the scope of its advisory functions or resolves any complaints that may arise regarding breaches of the Code. Queries and complaints to the Ethics Communicated by post, by email or through the Whistleblower Channel with direct access through the Group's internal portal. The operation of this channel is set out in the Code of Ethics and Conduct.

Every year, the Ethics Committee reports to the Steering Committee on the activities carried out during the fiscal year.

Whistleblower channel that allows employees to report financial and accounting irregularities to the audit committee, in addition to possible breaches of the code of conduct and irregular activities in the organization, indicating whether any of the information reported is confidential:

In addition to the Ethics Committee Whistled in the previous section, there is a Financial and Accounting Whistleblower Channel which allows Group employees to report any potentially significant financial and accounting irregularities they observe to the Audit and Committee confidentially, via an electronic general queries malibox or written correspondence to a specific address.

The operating standards of the Financial and Accounting Whistlebower Channel of the MAPRE Group, with Its last update approved by the Audit Committee in 2016, are published on the Intranet or internal portal of the Group.

The Audt and Complance Committee receives the complains and resolves them by addressing each one as it deems appropriate. In order to perform its functions properly, it relles on assistance from General Counsel and the Corporate Internal Audit Area.

In cases of complaints concerning the Groups subsidiary companistany Whistlebower Channel, the Audit and Compliance Committee and the competent body of the subsidiary company liaise in handling and resolving any complaints received.

ANNUAL REPORT ON THE CORPORATE GOVERNANCE OF PUBLICLY TRADED COMPANIES

The parties in the Channel have controls for restricting access to the information, and the confidentiality of the whistled wer's idently is assured through the collection of personal data provided in accordance with the requirements of current data protection legislation.

General Counsel issues an annual report for the Auditing the activities conducted through the Whistleblower Channel and the final result of the complaints made.

· Regular training and refresher programs for staff involved in the preparation and review of financial information, as well as evaluation of the ICFR, covering at least the accounting rules, audit, internal control and risk management.

MAPFRE has a Global Traning Model, and a learning strated globally. All our training knowledge and actions designed and deployed are associated with spectic objectives of the BSC (MAFFRE's strategy map). All knowledge, depending on its nature, is channeled through Schools within the framework of the MAPFRE Corporate University.

MAPFRE has set a goal so that in 2019 77% of the training effort worldwide will have technical and sales content and programs. In this area of technical knowledge is financial training, which is chool of Finance, the objective of which is to provide all professionals in all areas of MAPFRE with financial knowledge in risk management control and accounting, to become more effective and competitive within this function.

In 2019 MAPRE organized several training programs in Spain on financial, risk and internal control issues, representing a total of 3,314.8 training hours delivered to 1,239 participants.

Additionally, the Iberia Regional Area has continued to diffication training plan for the MAPFRE Sales Network taught by the FEF School (Fundación Estudios Financieros).

The agreement signed by MAPRE and FEF grants a wide group of profession throughout Spain to have access to a high level program that qualifies them as Financial Advisors approved by the Spanish National Securites and Exchange Commission (the "CNVV") as required by MFID II standard. This training adds great value to the MAFRE sales network by providing cutting and practical knowledge that will significantly help sales efforts related with savings and investments.

At the close of 2019, 512 employees and 677 brokers had received certification.

The program has a minimum duration of 280 hours and uses a blended system: in-person, video training, website and forums.

In the e-learning training modally, it is worth mentioning the course on "Internal Control Standards," which has been renewed in our three corporate languages in 2019. In MAPFRE, the Internal control model is represented with a three-dimensional cube-shaped matrix, in which each face represents a dimension. In this online program these dimensions are detailed, as well as the lines of defense and who supervises the internal control. As at December 31, 2019, 3,887 employees have completed said program at the GLOBAL level.

MAPFRE also offers an e-learning course on the Regulatory Complance Function, the objective of which is to advertise this function, objectives and responsibilities and the implementation thereof in organizations to minimize the risk of legal and regulatory non-compliance to which they are exposed. As at the close of 2019, 1,039 employees had undertaken this program since it was launched in 2015.

In 2017, a 45-minute e-learning course was developed in the Solvery II regulations, amed at all employees around the world who be Risk, Financial, Actuatial, Complance and Audit Areas. This program is avaliable in Spanish and English. As at the close of 2019, 738 employees have completed this program since it was launched in 2017.

The global online training program "Management of Risters" continued in 2019, with a duration of 200 hours, resulting in this area, aimed at 28 employees, in 6 countries.

Internal Audit training also continued in 2019, aiming to provide all professionals in MAPFRE audit areas around the world with the knowledge necessary to perform internal audits and to share established management tools and best practices.

In December 2019, a training seminar was held for the auditors of Spain and Portugal for an approximate duration of 12 hours, in which 65 enployees participated, and the content of which focused on deepenling business knowledge and areas drectly related to Internal Audit, in addition to learning about the evolution and status of the Inplementation of IFRS 17 in NAPRE, the new version of Auditmap, the Map of insurance within MAPRE and the current IT Stuation and technological positioning within MAPFRE, among others.

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F.2. Financial information risk assessment.

Report on at least the following:

F2.1 The main characteristics of the risk identification process, including error or fraud risks, in relation to:
· Whether the process exists and is documented:

MAPRE has a Risk Management System (hereinater, RMS) that applies to Group companies, in accordance with the Internal regulations of each of the risk categories considered.

The description of the RMS is included in Section E. Risk Control and Management Systems of this Corporate Governance Report.

Regarding the Risk Control System, risk factors are identified for each of the Group considers to be critical, which are classfied into 24 risk types. Among the risk factors considered for each process, one is always included regarding of operations with an economic or accounting impact.

These risk factors are associated with the main items in financial statements. In this process of identifying the key figures, quantitable and qualitative factors (complexity of transactions, risk of fraud and other aspects) were considered.

These risk factors are evaluated by the areas and department of the development of the risk control activities that, among other aspects, allow ! ) the identification of risks through specific questionnaires on controls and risk factors that have been relevant so far and il) the adoption of corrective measures in those cases, where necessary.

The procedure covers all financial information objectives (existence and occurrence; integrity; assessment; presentation, breakdown and comparability; and rights and obligations), whether it is updated and how frequently.

Identifying the risks that cover the objectives and occurrence, integrity, assessment, presentation, breakdown and rights and obligations of financial information is materialized through the quarterly questionnaire of internal controls over financial reporting.

The purpose of this procedure is to identify and controls are implemented during the process of preparing the financial information, to create documentary evidence of the controls carred out by the company relating to Cash and Investment, Consolidation, Accounting and Tax of the result of its application, and acting as an internal co share the relevant information related to the issuance of financial information.

The procedure was reviewed in the first quarter of 2018, the increase in the number of controls in each of the four above-mentioned processes, from a total of 105 in the last quater of 2017 to 234 controls in the first quater of 2018. This procedure remained operational during 2019.

· Existence of a procedure for identifying the consolidation scope, bearing in mind, inter alia, the possible existence of complex corporate structures, instrumental companies or those with a special purpose:

The MAPFRE Consolidation Manual, prepared by the Corporate Finance and Resources for identifying the scope of consolidation, which encompasses all the companies of the Group and is updated on a monthly basis.

The Consolidation Supervisor of each Subgroup receives details from the Consolidation Assistant Management of the scope of consolidation with the percentages of direct participation and the method of consolidation that applies. Any modification to the information provided must be reported to the Consolidation Assistant Management, which will make a decision after analyzing the reasons given.

The functional structure and the tasks assigned to the process supervisors are reflected in the Consolidation Manual.

ANNUAL REPORT ON THE CORPORATE GOVERNANCE OF PUBLICLY TRADED COMPANIES

Whether the procedure takes into account the effects of other risk types (operational, technological, fiscal, fiscal, reputational, environmental, etc.) insofar as they affect financial statements:
Risk control takes Into account the different types of operational, technological, financial, legal, reputational and environmental risks, as well as the risks Inherent in the insurance and reinsurance business.

In this process, each risk factor, where appropriate, is linked to the financial statements that would be affected if the potential risk became a really, the main sections being: premiums, provisition expenses, administration expenses and benefit expenses.

Risk control is promoted in the Group, both in Spain the Riskm@p computer application, which is developed internally by MAPRE and which als in the creation of company Risk Maps analyze the significance and probability of ocurrence of different risks. The management model is based on a dynamic analysis by processes, In which the managers of each area or department identify and assess the potential risks that affect business and support processes, as well as key economic figures, among other aspects, by completing self-evaluation questionnaires.

Which of the company's governing bodies oversees the process:

The Audit and Compliance Committee, in regards to the nations systems, has the competence, among other tasks, to periodically review the internal control systems and the risk identification and management systems, and one the year by Internal Audt.

Regarding the ICFR report prepared by the Financial Department, External Audit reviews and analyzes its contents, issuing its consistency or incidents of the information that could impact it.

The ICFR report, alongside the report prepared by the Audit and Compliance Committee prior to Its approval by the Board of Directors.

Control activities. E 3

Indicate whether at least the following are in place and describe the main characteristics:

F.3.1 Procedures for reviewing and authorizing financial information of the ICFR, to be published in stock markets, indicating who is responsible for them, as well as descriptive documentation of the flows of activities and controls (including those related to fraud risk) of

the various types of transactions that may materially affect the financial statements, including the accounting closing procedure and the specific review of the relevant judgments, estimates, valuations and projections.

The financial reports on the annual and quarterly information prepared by the Corporate Finance and Resources Area, are submitted to the Audit and Compliance Committee first and then to the Board of Directors.

In the case of individual and consolidated annual officer, the Chief Internal Audit Officer and the executive responsible for preparing these accounts certify their accuracy and integrity to the Board of Directors.

The closing calendar, prepared by the Procedent Management, lists the main activites of the process of consolidating and preparing the annual and biannual accounts and the corresponding deadlines for compliance.

The different Group companies report financial information through their assigned supervisors, which the Corporate Finances to prepare the reports. During the consolidation process, controls are in place to significantly affect the financial statements.

The Audit and Compliance Committee supervises the following information:

· The management report and individual and consolidated annual accounts of MAPFRE S.A. and its subsidiarles.

• The report on the limited review of the consolidated interim financial statements of MAPFRE S.A. corresponding to the internediate period ending on June 30 of each fiscal year.

• The Information that MAPFRE S.A. sends to the Spanish National Securities and Exchange Commission (the "CNMV") every quarter.

ANNUAL REPORT ON THE CORPORATE GOVERNANCE OF PUBLICLY TRADED COMPANIES

· The information prepared by MAPPRE S.A. for investors, which is reviewed and analyzed by the Audit and Complance Committee before publication.

« Documents relating to Pillar II and Pillar III of Solvency Assessment) and SFCR (Solvercy and Financial Conditor Report),

Additionally, as indicated in the previous section, each quarter the questionaire on internal controls of financial information. This questionnaire includes documented evides and controls performed with regard to the main financial information processes.

Control activities are performed through the departmental and area supervisors prepare internal control manuals and other descriptive documents, which contain procedures, activities and the parties Involved in them, identlifying the associated risks and the controls for mile gating them, including those related to fraud risk and the accounting close process. The knowledge and documentation of controls allows those responsible for the various areas and departments of MAPRE companies to evaluate the effectiveness of the established controls, to find out if the relevant risks hat have been identified are sufficiently controlled and take the necessary corrective measures.

Regarding the ludgments and estimates, the Board of Drectors makes them based on assumptions on the future and about uncertainties which are mainly related to technical provisions; losses due to deterioration of provisions for risks and expenses; the actuation of Ilabilities and commtments for post-employment remuneration; the useful iffe of intangible fxed asses; and the fair value of certain non-listed assets.

The estimates and assumptions used are includions, are reviewed regularly, and are based on historical experience and on other fractions that may be considered more reasonable at the the review leads to changes in estimates in a given period, their effect is applied during that period and, f applicable, in subsequent periods.

F.32 operational continuity and separation of functions) that concern the company's relevant procedures in relation to the preparation and publication of financial information.

The Corporate Security and Environmental Divisor (DIS) 2018, was dependent on the Corporate Resources and Institutional Coordination Area, becomes dependent from that date on the Corport Area, which is managed by the General Director of Business Support. These changes were approved by the Board of Directors of MAPFRE S.A. on June 18, 2018. The DISMA acts directly on the regulations regarding data security.

In particular, the measures established are spectfied in a Documentary Data Security System (SDSI) or Regulatory (CNSI), which derives from the Master Plan for Security and the Corporate Security and Privacy Policy, both documents whose latest update was approved by the Board of Drectors of MAPRE S.A., at its meeting held on December 13, 2018. In this version, these documents have been adapted to the new regulatory requirements, mainly regarding the General Data Protection Regulations (GDPR), and the rivacy and Data Protection Committee as the delegate body of the Security and Environment Committee, and as a support body of the Crisis and Business Continuity Committee.

"These security controls and procedures established on information systems can be classified as: preventive, and result in the development and dissemination of standards, the establish of neworks and systems, the review of measures and controls implemented, and the ability to respond to possible security incidents that may occur."

Among other aspects, the Data Security Regulation systems must be tracked and monttored through Inventory procedures to identify the resources and the information of the denthy of the denthy of the people who use them; and the use of passwords in keeping with the password strength crtteria lald down in the regulations, which help maintain the appropriate separation of functions.

Likewise, MAPFRE also has an e-learning Security course, developed and integrated in the eCampus platform, whose purpose is to rain its employees in this area, its objectives and the importance that this acquires in organizations to minimize risks and fulfil their responsibilities in this regard. During 2019 a new updated and improved version been distributed, which also provides a recurring process to update awareness in this area.

To facilitate compliance with the responsibilities and commitments established in the Data Security Regulations, MAPFRE has a General Control Center (which acts as a Computer Emergency Response Team (CERT) and belongs to the International network known as FIRST or Forum of Incident Response and Security Teams). This center monitors activity in the networks and is the Group's information systems, and is the body responsible for responding to potential security includents.

Additionally, every year the Corporate Security and Environments a calendar of security checks to verify the security controls in place and discover any vulnerabilities in the information systems.

Both the Corporate Security and Privacy Policy and Environment Governance Model, and the rules and standards of the Data Security Requlatory Body, are published on the Global Intranet in order to enable access to all employees.

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In addition, the Group has a Corporate Business Cortinuity Model consisting of a Policy, a Governance Framework and a Business Continuity Methodology that define the framework and the necessary actions to ensure the correct development of the operation before the materialization of a high Impact incident, so that the damage caused is minimized.

Every two years, the Corporate Internal Audit Area verifies the Internal Control System of the main IT Systems whose scope is the general controls of information technology (IT), the IT control environment, and the application controls. In those years where no specific review is carried out, the identified action plans are monitored and their status is reviewed.

F33 parties, as well as those aspects of evaluation or valuation entrusted to independent experts, which may have a material effect on financial statements.

Al services subcontracted to third parties are articulated through spectic contracting unls or areas directly supervise the providers, except in the case of exceptional services (that are not recurring overtion and lesser importance which are processed through the system based on the provider's offer.

Providers are selected on the bass of objective criteria that assess factors such as quality, proce, provider infrastructure, market recognition and, in particular, membership of the groups of associates that collaborate with the Group's companies and their track record in terms of service quality.

Compliance with prevailing legislation in the various and the implementation of security measures where warranted are prerequisites. Other highly rated attributes Include response times, after-sales service, geographic reach and they can contribute.

Currently under development by the Purchase and Resources Division is a project to be deployed in the Purchase and Contracting Servos Global Model (which is already present in 15 countries), which in the categories induding the category corresponding to services of independent professionals, which includes services with a possible financial impact derived from the evaluation or valuation assigned.

In Implementing this plan, In 2013 the Steering Comment Requiritions which contain the principles and basic citterla for be procurement of goods and services by all Group companies increation and type of business. A Purchasing Procedure is also defined and approved internally that completes the Purch was updated during 2017 and which entered into force on January 1, 2018. Both documents were reviewed and updated in January 2019 accommendations provided by Internal Audit and based on experience gained in the years since they were approved.

Additionally, each organization or country the ability to negotate contracts, by having enough agency, must develop a specific procedure to regulate its hiring, always respecting and in compliners with the minimum criteria established in the Purchase Standard and General Procedure.

In general, providers are approved and contract Area, and once the contract has been formalized it is the requester who ensures that the service is delivered correctly and in line with current legislation.

Notwithstanding the foregoing, in cases where independent professionals have to be treated with special confidentially (M&A) it is the area itself that directly hires and supervice, although minimal information to document the hiring, as established in the Procedure for Senstive Hiring, must be registered in the system.

Currently, the main providers that are contracted (those with an annual turnover of more than thirty thousand euros) have been approved and, in line with the Procurement Procedure, the objective is to providers with special relevance for the MAPRE Group as stated in the Purchase Procedure.

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Information and Communication. F.4.

Indicate whether at least the following are in place and describe the main characteristics:

FA1 department) and resolving queries or disputes derived from their interpretation, maintaining continuous communication with those responsible for operations in the organization, as well as an updated manual of accounting policies that is communicated to the units through which the company operates.

The Accounting Regulations Assistant Management, which reports to the Corporate Area of Finance and Resources, with updating accounting policies and applicable rules thancial Information, and for resolving consultations and disputes deriving from the interpretation thereof.

It also maintains a close and fluid relationship with the financial divisions of the different companies and with the Corporate Areas, to which it communicates formally established accounting procedures and rules.

With regard to the preparation of financial infornation, General Counsel and Resources Area issued memos contailing institudio and updates on applicable regulations. In addition, financial supervisors have specific models and instructions for preparing financial information, using the Accounting Models and the Consolidation Manual (which includes applicable accounting standards and policles), which are updated annually.

The subsidiaries of the Group receive the applicable procedures and standards through the parent intelles of the Subgroups, which in turn receive the instructions directly from the Accounting Regulations Assistant Management and Supervision Assistant. Management.

The Procedures and Supervision Assistant Management updated Annual Accounting Models used by the varlous Group companies, which include accounting policies and breakdowns of information to be presented.

The Consolidation Assistant Management of the Corporate Finance and Resources Area specifies the Instructions on accounting policles and breakdowns for preparation of the Group's consolidated information using the Consolidation Manual.

At least once a year, and during the last quarter of the Annual Accounting Models and the Consolidation Manual are reviewed and any charges are reported to the parties involved. However, whenever that affect periods of time of less than one year, these changes are reported immediately.

FA2 by all units of the company or the Group, that support the main financial statements and notes, as well as information provided on the ICFR.

The financial information of MAPFRE Group companies is managed through the corporate consolidation application, a tool that represents a centralized datablase (common and single data repository). This been programmed to automatically execute the liner the link best of except of creation which guarantees that the criteria set out in the consolication manual are applied uniformly to all the automatic entries and minimizes the likelinod of errors.

Within the procedure for preparing financial information certificates constitute the channel of communication about them the many required in the consolidation procedure or in the preparation of consolidated financial statements. The certificates are reviewed and updated at least one a year.

Based on the information contained in the consilitates and following the Accounting Models prepared by the Procedures and Supervision Assistant Management, the Consolidation Assistant Management prepares the consolidated annual accounts and other financial statements.

The Internal Accounting Control Assistant Management is responsible for the report on the ICFR. To do this: and the realiny the reast investig rne fite fine mediating on reason in responsible in reportions on how to complete the report, and at least once a year asks them to update the support documentation for the actions performed.

The English version is a translation of the original in case of discrepancy, the Spanish version shall prevail.

ANNUAL REPORT ON THE CORPORATE GOVERNANCE OF PUBLICLY TRADED COMPANIES

F.5. Supervision of the system's operation.

Report on the following, indicating the main characteristics:

F5.1 The supervision activities of the audit committee and whether the company has an internal audit function that includes supporting the committee in its supervision of the internal control system, including the ICFR. Additionally, the scope of the ICFR evaluation carried out during the fiscal year and the procedure by which the person in charge of carrying out the evaluation will communicate their results will be reported, as well as information about whether the company has an action plan detailing the possible corrective measures, and if its impact on financial information has been considered.

MAPRE S.A. has a Corporate Internal Audit Area consisting of six Internal Audit Services Incated in Spain (Seguros Latam, Seguros Internacional, Reinsurance, Assistance and Global Risks, and Information Technologies), a Continuous Internal audit units and departments abroad that are fuly Independent, and which review and assess the suitability and correct functioning of the Group's processes, as well as the Internal Control System.

The structure of MAPFRE's Corporate Internally on the Board of Directors of MAPFRE S.A. through the Audit and Complance Committee (Delegate Body of the Board) and on the Chairman in particular.

The directors of the audit departments and units depend (functionally) on the Group Chief Internal Audit Officer.

The Audit and Complance Committee supervises the finances in the previous Section F.3.1 of this report, and also approves the Internal Audit Plan and monitors it on a quarterly basis.

The Audit Plan outlines the supervisory work that the will carry out during the next fiscal year, the content and scope of which are established in terms of the risks identified, requests received and own experience. The plan is managed uniformly through a single Group-wde technological platform that allows the information to be processed in line with the access levels established for the 2019 Internal Audit Plan was approved by the Audit and Compliance Committee in the session held on February 5, 2019.

The MAPRE Group Internal Audit Statute and Pollo, which was approved by the Board of Directors on February 6, 2019, states that the Corporate Area of Internal Audit has the following exclusive functions, among others:

To supervise the suitability and efficacy of the Internal Control System and other elements of the Governance System, which is centered on:

* Evaluating the suitability, sufficiency and efficacy of elements of the Internal Control System.

* Evaluating the Risk Management System (RMS), based on the integrated management of all the business processes and suitability of the risk level to MAPFRES strategic objectives by reviewing, as a minimum requilification and qualification processes for the sovency In the Solvency II Directive.

* Evaluating the sultability and performance of the key Functions set out in the Governance System provided for in the Solvency II Directive.

Contributing to good Corporate Governance with the rules established by the MAFFRE Group's Institutional, Corporate and Organizational Principles and the Solvency II Directive.
In accordance with the Annual Audt Plan or as specified, evaluating the rellability and integrity of accounting and other economic Information prepared by MAPRE S.A., its Subsdiaries, Business Units, Territorial Areas and Corporate Areas, as well as the validly, sufficiency and application of the accounting and legal principles and rules.

The evaluation and assessment of the MAFRE Internal Control System conducted by the Internal Audit Corporate Area follows a methodology based on variables such as the review of the IT Internal control, the audits conducted during the year and complance with recommendations, which are first aproved by the Audit and Complance Committee. The review is reflected in the Internal Control System Assessment Report. Whenever appropriate, individual recommendations are made to the over to inproving the Internal Control System and then the Audit and Compliance Committee monitors their compliance.

Every year the Audit and Complance Commttee and any recommendations issued by the Corporate Internal Audit Area on the Internal Control System (which includes those from the ICFR).

The Corporate Internal Audit Area assesses the Internal Control System for the main IT systems, as indicated in section F.3.2 above.

Additionally, the Corporate Internal Audit Area carries out a check on the work carried out throughout the year in relation to the ICFR.

Likewise, as part of the audit procedures performed to validate the annual financial statemal auditor issues a nemoradum of recommendations after his/her interim visit, which is presented to the Audit and Compliance Committee.

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ANNUAL REPORT ON THE CORPORATE GOVERNANCE OF PUBLICLY TRADED COMPANIES

F.5.2 Whether there is a procedure for discussion whereby the account auditor (pursuant to the NTAs), the internal audit function and other experts can notify the executive management and the audit committee or company executives of any significant weaknesses in internal control identified during procedures to review the annual accounts or others that have been entrusted to them. Also indicate whether there is an action plan that endeavors to correct or mitigate the weaknesses observed.

The previous section F.5.1 Indicates the procedure used by the Corporate Internal Audit Area to report assessments of aspects relating to Internal control.

Communication with the external auditor is very frequent and fuid in the beginning, during and at completion of work to review the company's annual accounts by the external auditors, planning, follow-up and coordination meetings are held and thers, internal auditors, General Counsel and the Corporate Finance and Resources Area. Additionally, on completion of the With the Group Chief Internal Audit Officer to discuss the results and conclusions attends the Auditor attends the Audit and Compliance Committee when the agenda includes topics regarding the review of the annual and half-yearly accounts, their preliminary review, and whenever required on account of other Issues.

F.6. Other relevant information.

There is no other relevant information about the ICFR that has not been included in this report.

External auditor report. F.7.

Indicate:

F.7.1 Whether the ICFR information sent to the markets has been reviewed by the external auditor. If so, the company should attach the relevant report as an annex. Otherwise, state the reasons.

The ICFR Information has been reviewed by the external auditor, whose report is attached as an annex.

273

ANNUAL REPORT ON THE CORPORATE GOVERNANCE OF PUBLICLY TRADED COMPANIES

: DEGREE OF COMPLIANCE WITH CORPORATE GOVERNANCE RECOMMENDATIONS

ndicate the extent to which the company follows the recommendations of the Good Governance Code for listed companies.

n the event that any recommendation is not followed, a detailed explanation of the reasons should be included so hat shareholders, investors and the market in general have enough information to assess the company. No general :xplanations will be accepted.

The bylaws of listed companies should not place a maximum limit on the votes that can be cast by a single shareholder, or impose other obstacles to the takeover of the company by purchasing their shares on the market.

Complies [ X ] Explain [ ]

1. When a parent and a subsidiary company are publicly traded, both should provide detailed disclosure on:
2. a) The respective and possible business relationships between them, as well as those of the dependent subsidiary listed with the other companies in the group.
3. b) The mechanisms in place to resolve possible conflicts of interest.
  - Not applicable [ X ] Complies [ ] Complies in part | 1 Explain [ ]
1. of directors must inform the shareholders verbally, in sufficient detail, of the most relevant corporate governance aspects of the company and, in particular:
2. a) The changes that have occurred since the last Annual General Meeting.
3. b) and, if applicable, the alternative rules that it applies on these matters.

Explain [ ] Complies [ X ] Complies in part [ ]

The company shall define and promote a new policy on communication and contact with shareholders, institutional investors and proxy advisors that is fully respectful of the rules against market abuse and treats all shareholders in the same position equally.

The company shall make this policy public through its website, including information relating to the way in which it has been put into practice and identifying the interlocutors or those responsible for this happening.

Complies [ X ] Complies in part [ ] Explain [

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ANNUAL REPORT ON THE CORPORATE GOVERNANCE OF PUBLICLY TRADED COMPANIES

convertible values, excluding the right of first refusal, for more than 20 percent of the capital at the time of delegation.

When the board of directors approves any issuance of shares or convertible bonds, excluding the right of first refusal, the company shall publish the reports on this exclusion, referred to by corporate legislation, on its website immediately.

Complies [ X ]	Complies in part [	Explain [
----------------	--------------------	-----------

The listed companies that prepare the reports indicated below, whether on a mandatory or voluntary basis, shall publish them on their website with sufficient notice before the Annual General Meeting is held, even if their distribution is not mandator:

			Report on the independence of the auditor.

b)
Report of the audit committee on related operations. c)
Report on the corporate social responsibility policy. d)
The company shall broadcast the Annual General Meeting live on its website.

Complies [ X ] Explain [ ]

The audit committee shall ensure that the board of directors seeks to present accounts to the Annual General Meeting without limitations or reservations in the audit report. When this is not possible, both the chairman of the audit committee and the auditors must clearly explain the content and scope of these limitations or reservations.

Complies [ X ] Complies in part [ ] Explain ( 1

support the ownership of shares, the right to attend the Annual General Meeting and voting or proxy voting.

These requirements and procedures shall promote attendance and the shareholders and must be applied in a non-discriminatory manner.

Explain [ ] Complies [ X ] Complies in part [ ]

ANNUAL REPORT ON THE CORPORATE GOVERNANCE OF PUBLICLY TRADED COMPANIES

1. When, prior the Annual General Meeting, any entitled shareholder has exercised the right to complete the agenda or present new proposals for resolution, the company:
2. Shall immediately broadcast these new and additional proposals for resolution. a)
3. b) Shall publicize the model or distance vote form with the necessary modifications so that they can vote on the new points in the agenda and proposed alternatives for resolution in the same terms as those proposed by the board of directors.
4. c) board of directors, including, in particular, the presumptions or inferences on how to vote.
5. d) proposed alternatives.

Complies	Complies in part l	Explain	Not applicable [ X ]

premiums previously and this policy must be permanent.

Complies X	Complies in part [	Explain	Not applicable {
--------------	--------------------	---------	------------------

The board of directors shall perform its functions with a unified purpose and independent judgment, treat all shareholders in the same position equally and be guided by corporate interest, understood as a profitable business that is sustainable in the long-term and that promotes the continuation and maximization of the economic value of the company.

In the pursuit of corporate interest, in addition to compliance with the laws and a behavior based on good faith, ethics and in compliance with the commonly accepted uses and good practices, it shall seek to reconcile, as appropriate, corporate interest with the legitimate interests of its employees, clients and those of the other stakeholders that may be affected, as well as the impact of the company's activities on the community as a whole and the environment.

Complies [ X ] Complies in part [ ] Explain [ ]

The board of directors shall be of the required size to permit its efficient and participatory operation, meaning that it is advisable for it to comprise between five and 15 members.

Complies | X | Explain [ ]

ANNUAL REPORT ON THE CORPORATE GOVERNANCE OF PUBLICLY TRADED COMPANIES

1. The board of directors shall approve a board director selection policy which:
2. Is specific and verifiable. a)
3. b) Ensures that the appointment proposals are based on a prior analysis of the board of directors.
4. c)

The results of the prior analysis of the board of directors shall be included in the explanatory report of the appointments committee that is published when the Annual General Meeting is called, to which the ratification, appointment or reappointment of each board director is submitted.

The board director selection policy shall promote the objective for the number of directors in 2020 to represent at least 30 percent of the total members of the board of directors.

The appointments committee shall verify the compliance with the board director selection policy annually and shall inform on this in the annual corporate governance report.

Complies [ X ] Complies in part [	Explain (
--------------------------------------	-----------	--

The nominee and independent board directors shall constitute a large majority of the board of directors, and the number of executive board directors should be the minimum required to deal with the complexity of the corporate group and reflect the percentage of shares held in the company by the executive board directors.

Complies [ X ]	Complies in part {		Explain

The percentage of nominee board directors of the total number of non-executive board directors should not be greater than the ratio between the company capital represented by these board directors and the rest of the capital.

This criterion can be relaxed:

Explain { Complies | X |

COMISION

NACIONAL

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ANNUAL REPORT ON THE CORPORATE GOVERNANCE OF PUBLICLY TRADED COMPANIES

17.

However, when the company is not large cap, or when, even though it is, it has one or several shareholders acting in unison controlling more than 30 percent of the share capital, the number of independent board directors should represent at least a third of all board directors.

Complies [ X ] Explain [ ]

1. Companies shall publish the following board director particulars on their website and keep them permanently updated:
2. Professional and biographical profile. a)
3. Other boards to which they belong, whether or not listed companies, as well as other paid activities performed, whatever b) their nature.
4. c) of nominee board directors, stating the shareholder they represent or to whom they are affiliated.
5. d)
6. e)

Complies [ X ]	Complies in part [		Explain [
----------------	--------------------	--	-----------	--

The annual corporate governance report, following verfication by the appointments committee, shall disclose the reasons for the appointment of nominee board directors at the behest of shareholders controlling less than three percent of capital; and it should explain any rejection of a formal request for a board place from shareholders whose equity stake is equal to or greater than that of others appointed for a nominee directorship.

Complies (	Complies in part	Explain	Not applicable [ X ]
------------	------------------	---------	----------------------

Nominee board directors must resign when they represent transfer their ownership interest in its entirety. If such shareholders reduce their stakes, thereby losing some of their entitlement to nominee board directors, the number of such nominee board directors should be reduced accordingly.

Not applicable { X } Complies [ ] Complies in part [ ] Explain [ ]

CNMV Oficina: ROD MADRID Registro de Entrada Nº: 2020018771 Fecha de registro: 2020-02-12 01:18:30

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ANNUAL REPORT ON THE CORPORATE GOVERNANCE OF PUBLICLY TRADED COMPANIES

The board of directors must not propose the removal of independent board directors before the expiry of their term in office pursuant to the bylaws, except where due is found by the board of directors, based on a report from the appointments committee. In particular, it must be understood that there is just cause when the board director takes on new positions or contracts new obligations that prevent him/her from devoting the necessary time to the functions of a board director, fails to comply with the work inherent to his/her position or is involved in any of the circumstances that cause the loss of his/her independent status, in accordance with that established in applicable legislation.

The removal of independent board directors can also be proposed as a result of public takeover bid. merger or similar corporate actions that cause changes in the capital structure of the company, when these in the structure of the board of directors are supported by the proportionality criteria, indicated in recommendation 16.

Complies | X 1 Explain ( 1

Companies shall establish rules obliging board of directors of any circumstance that might undermine the organization's name or reputation their resignation as the case may be, with particular mention of any criminal charges brought against them and the progress of any subsequent proceedings.

If a board director is indicted or tried for any of the crimes stated in corporate law, the board of directors should examine the matter as soon as possible and, in view of the particular circumstances, decide whether or not he/she should be called on to resign. The board of directions should also disclose all of this in the annual corporate governance report.

Complies [ X ] Complies in part [ ] Explain ( 1

The board directors should clearly express their opposition when they consider that a resolution submitted to the board of directors may go against the corporate interest. In particular, independent board directors and other board directors unaffected by the potential conflict of interest should challenge any decision that could go against the interests of shareholders lacking representation in the board of directors.

When the board of directors adopts important or reiterated resolutions on issues about which a board director has expressed serious reservations, it must draw the pertinent conclusions. If chosen to resign, the reasons for this must be set out in the letter referred to in the following recommendation.

This recommendation should also apply to the secretary of the board of directors, even if the secretary is not a board director.

Complies [ X ] Complies in part [ ]

Explain [ ]

Not applicable [ ]

ANNUAL REPORT ON THE CORPORATE GOVERNANCE OF PUBLICLY TRADED COMPANIES

If leaving office before the end of his/her term, whether due to resignation or other reasons, the board director should explain the reasons in a letter sent to all members of the board of directors. Whether or not such resignation is filed as a significant event, the reasons for leaving must be explained in the annual corporate governance report.

Complies [ X ] Complies in part [	Explain (	Not applicable [ ]
--------------------------------------	-----------	-------------------------

The appointments committee must ensure that non-executive board directors have sufficient time available to perform their functions correctly.

The board regulations establish the maximum number of company directorships that can form part of their board directors.

Complies [ X ] Complies in part [		Explain
--------------------------------------	--	---------	--

The board of directors should meet with the necessary frequency to perform its functions properly, and at least eight times a year, following the schedule of dates and matters established at the beginning of the fiscal year, to which each board director may propose the addition of other items individually.

Complies [ X ] Complies in part [ Explain
-------------------------------------------------	--	--

Board directors should keep their absences to a bare minimum. Absences should be quantified in the annual corporate governance report. When they have to be absent, they should delegate their representation with instructions.

Complies [ X ]	Complies in part [		Explain
----------------	--------------------	--	---------

When board directors or the company secretary express concerns about a proposal or, in the case of board directors, about the company's performance, and such concerns are not resolved by the board of directors, the person expressing them may request that they be recorded in the minutes.

Complies X 1	Complies in part l	Explain	Not applicable [

I The company must establish the appropriate channels for the board directors to obtain precise advice for the fulfillment of their functions, including, if the circumstances demand it, external advice at the company's expense.

	Complies X ]	Complies in part	Explain
--	----------------	------------------	---------

I respective of the knowledge demanded of the board directors to perform their functions, companies also offer refresher programs, when the circumstances so dictate.

Complies [ X ] Explain [ ] Not applicable [ ]

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ANNUAL REPORT ON THE CORPORATE GOVERNANCE OF PUBLICLY TRADED COMPANIES

The agenda of the sessions must clearly indicate the points about which the Board of Directors must make a decision that enables the board directors to study or previously obtain the information required for this to take place.

When, in exceptional circumstances, as a matter of urgency, the board director wishes to submit decisions or resolutions that are not part of the agenda to the board of directors, prior and express consent must be directors present, which must be dulv recorded in the minutes.

Complies [ X ] Complies in part [	Explain (
--------------------------------------	-----------

I The board directors must be informed periodically on the transactions of the opinions that the significant shareholders, investors and ratings agencies have on the company and group.

Complies [ X ]	Complies in part [	Explain [

1. The chairman, as the person responsible for the effective functioning of the board of directors, in addition to exercising the functions that he has been legally and statutorily assigned, must prepare and submit to the board of directors a program of dates and matters to be discussed; organize and coordinate the periodic evaluation of the board, as where appropriate, that of the company's chief executive; and must be responsible for the management of the board and the effectiveness of its operation; and must ensure that sufficient discussion time is devels issues, and agree and review refresher programs for each board director, when the circumstances so dictate.
2. Complies [ X ] Complies in part [ ] Explain [ ]
When there is a lead board director, the bylaws or regulations of the board of directors, as well as the powers that are legally entitled, he/she is assigned the following: to chair the board of the chairman and vice chairman and vice chairmen, if applicable, voice the concerns of the non-executive board directors and shareholders to be aware of their points of view in order to form an opinion on their concerns, particularly in relation to the corporate governance of the company, and coordinate the succession of the chairman.

Complies ( Complies in part X 1	Explains	Not applicable
--------------------------------------	----------	----------------

The company comples with the entire recommendation, except to assigning the Lead Board Director with the power to chair the Board of Directors In the absence of the Chairman, to maintain contact and shareholders, and to coordinate the succession of the Chairman. The Regulations of the Board of Directors assigns the Lead Board Drector the Board of Directors to be corvened, or the Inclusion of new points in the agenda from a Board meeting already convened, to cordinate and bring toped by Board Drectors and, If required, direct the periodic evaluation of the Chairman of the Board of Directors.

In accordance with the Board of Drectors Requations, in the Chairman and Vice Chairmen, the oldest board drector is called upon to chair the meeting. However, the Lead female Director is also the Chairvoman of the Board and, accordingly, is entrusted with chalring meetings in the absence of the Chairman and the First Vice Chairman.

With respect to relationships with shareholders and Investors, article 21 of the Board of Directors Regulations establishes that the Board of Drectors is responsible for establishing and supervisions and relations mechanisms with shareholders and Investors, establishing the pertinent communications channels in the Policy for Communication with Shareholders, The company considers that this configuration ensures better and more efficient coordination of the company's relationships with its investors and shareholders.

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ANNUAL REPORT ON THE CORPORATE GOVERNANCE OF PUBLICLY TRADED COMPANIES

Finally, the Board of Directors' Regulations and Remuneration Committee the power to examine and organize the succession of the Chairman of the Board, as established in article 529 of the Companies Act.

The secretary of the board of directors should in particular ensure that board of directors has the recommendations on good governance at hand during its actions applicable to the company. These are contained in this Good Governance Code.

Complies [ X ] Explain [ ]

I The board of directors should evaluate and adopt an action plan in full once a year, if applicable, that corrects the weaknesses detected, in relation to:

The quality and efficiency of the operational aspects of the board of directors. a)

b)
c)
d)
e) The performance and contribution of each board director, paying special attention to those responsible for the different board committees.

The various committees are evaluated on the report that they present to the board of directors, and for the latter, on the report presented to the appointments committee.

Every three years, the board of directors shall be assisted by an external advisor to perform the independence of whom shall be verified by the appointments committee.

The business relationships maintained by the advisor or any company or any company or any company in its group must be indicated in the annual corporate governance report.

The process and the areas evaluated must be described in the annual corporate governance report.

Complies [ X ] Complies in part [	Explain
--------------------------------------	---------	--

When there is an executive committee, the breakdown of its members by board director category should be similar to that of the board of directors. The secretary of the board should also act as secretary to the executive committee.

Not applicable [ ] Complies [ X ] Complies in part [ ] Explain [ ]

The board of directors should be kept fully informed of the matters discussed and resolutions adopted by the executive committee. To this end, all members of the board of directors should receive a copy of the executive committee's minutes.

Not applicable [ ] Explain [ ] Complies [ X ] Complies in part [ ]

ANNUAL REPORT ON THE CORPORATE GOVERNANCE OF PUBLICLY TRADED COMPANIES

All members of the audit committee, particularly its chairman, should be appointed with regard to their knowledge and background in accounting, auditing and risk management. The majority of these members should be independent board directors.

Complies [ X ]	Complies in part [	Explain إ
----------------	--------------------	------------

Under the supervision of the audit committee, there should be a unit that assumes the internal audit function that ensures the proper performance of the information and internal control systems, and functionally operates under the non-executive director of the board or the audit committee.

Complies [ X	Complies in part [	Explain
--------------	--------------------	---------

The manager of the unit that assumes the internal audit function must program to the audit committee, report to it directly about any incidents arising during its implementation, and present an activity report at the end of each fissal year.

Complies X	Complies in part [	Explain	Not applicable [ ]
--------------	--------------------	---------	------------------------

ANNUAL REPORT ON THE CORPORATE GOVERNANCE OF PUBLICLY TRADED COMPANIES

42.
- 1.
  - a) To supervise the process of preparing the financial information and its integrity for the company and group, reviewing compliance with regulatory requirements, checking the scope of the consolidation perimeter and making sure that the accounting principles are applied properly.
  - b) To ensure the independence of the unit that assumes the internal audit function; to propose the selection, appointment, reappointment and removal of the internal audit officer; to propose the budget for the internal audit department; to approve the guidance and work programs, ensuring that the unit's activity primarily focuses on risks relevant to the company; to receive periodic information on its activities; and to check that the executive management takes the conclusions and recommendations of its reports into account.
  - c) To establish and supervise a mechanism that enables employees to confidentially and, if this is deemed possible and appropriate, anonymously report any irregularities they notice within the company which may be of potential importance, especially financial and accounting irregularities.
- 1. With respect to the external auditor:
  2. a) Should the external auditor resign, to examine the circumstances leading to the resignation.
  3. b) To ensure that the remuneration of the external auditor for his/her work does not compromise his/her quality or independence.
  4. c) To ensure that the company notifies any change of auditor to the Spanish National Securities and Exchange Commission (the "CNMV") as a significant event, accompanied by a statement of any disagreements arising with the outgoing auditor and the reasons for these.
  5. d) To ensure that the external auditor holds an annual plenary meeting of directors to inform them about the work performed, the accounting situation and any risks to the company.
  6. e) To ensure that the company and the external auditor respect the prevailing standards on the provision of services other than auditing, the limits on the concentration of the auditor's business and, in general, other standards established to guarantee auditors' independence.

Complies { X	Complies in part {	Explain

The audit committee can summon any company employee or executive, even ordering their appearance without the presence of another executive.

Complies [ X ] Complies in part [ ] Explain [ ]

ANNUAL REPORT ON THE CORPORATE GOVERNANCE OF PUBLICLY TRADED COMPANIES

The audit committee must be informed of any corporate and structural modifications which the company plans to that, in advance of the next board of directors meeting, the committee can analyze these modifications and draw up a report about any economic conditions and accounting impact, particularly as regards the proposed exchange ratio.

Complies [ X ]	Complies in part [	Explain	Not applicable [ ]
----------------	--------------------	---------	------------------------

1. The risk control and management policy should specify at least the following:
2. a) and reputational), faced by the company. In the case of financial or economic risks, the contingent liabilities and other offbalance-sheet risks must be identified.
3. b) The fixing of the risk level that the company considers acceptable.
4. c)
5. d) The internal oversight and reporting systems that will be used to control and manage these risks, including contingent liabilities and off-balance-sheet risks.

Complies [ X	Complies in part I	Explain
--------------	--------------------	---------

1. Under the direct supervision of the audit committee, or, if applicable, a specialized committee of there should be an internal risk control and management function performed by a unit or department within the company that is expressly assigned the following functions:
2. a) and quantify all the significant risks that affect the company.
3. b)
4. c) defined by the board of directors.

Complies [ X ] Complies in part [ ] Explain [ ]

The members appointed to the appointments and remuneration committee---or the appointments committee and remuneration committee if separate---must have the knowledge, skills and experience appropriate for the functions that they are called to fulfill. The majority of these members should be independent board directors.

Complies [ X ] Complies in part [ ] Explain [ ]

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COMISION

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DE VALORES
48.			The large cap companies have a separate appointments committee and a remuneration committee.
		Complies	Explain X J	Not applicable {	1
	by the same committee.				The company considers the issues regarding and remuneration to be closely related, and it is therefore seen as appropriate for them to be analyzed
			particularly with respect to matters relating to executive board directors.		49. The appointments and remuneration committee must consult with the chairman of the board of directors and the chief executive,
Any board director may ask the appointments committee to take into consideration any candidates he/she deems suitable to fill a board director vacancy.
		Complies { X ]	Complies in part [	Explain [	-
		following ones:			50. The remuneration committee must perform its functions independently and, in addition to the functions assigned by law, the
a)
		b) To check compliance with the compensation policy set by the company.
	c) systems with shares and the application thereof, as well as to guarantee that individual remuneration is proportional to that paid to the rest of the board directors and top executives of the company.
	d) committee.
			documents, included in the annual report on the remuneration of board directors.		e)
		Complies [ X ]	Complies in part [ ]	Explain [ ]
					51. The remuneration committee must consult with the chief executive, especially with respect to matters related to executive board

directors and senior managers.

Complies [ X ] Complies in part [	Explain [ ]
--------------------------------------	------------------

ANNUAL REPORT ON THE CORPORATE GOVERNANCE OF PUBLICLY TRADED COMPANIES

1. The rules governing the composition of the supervision and control committees must be included in the regulations of the board of directors and be consistent with those applicable to legally obliged committees in line with the previous recommendations, including:
2. a)
3. Their chairmen are independent board directors. b)
4. c) terms of reference of each committee; discusses its proposals and reports on and defends its activity at the first plenary board of directors meeting held after its own meetings.
5. d)
6. e)

Not applicable [ ] Complies [ X ] Complies in part [ ] Explain [ ]

ANNUAL REPORT ON THE CORPORATE GOVERNANCE OF PUBLICLY TRADED COMPANIES

The supervision of compliance with corporate governance rules, internal codes of conduct and the corporate social responsibility policy must be attributed among several committees of the board of directors, which may be the audit commission, the appointments committee, the corporate social responsibility committee, if these exist, or a specialized commission that the

board of directors, in the exercise of its powers of self-organization, decides to create for this purpose, to which the following minimum functions are specifically attributed:

Supervision of the company's compliance with its internal codes of conduct and rules of corporate governance. a)
b) shareholders.
c) the corporate interest and bearing in mind, as applicable, the legitimate interests of the remaining stakeholders.
d)
e)
f)
g) social, environmental, political and reputational.
h) international reference standards.

Explain [ ] Complies [ ] Complies in part [ X ]

Functions a) and c) expressly correspond to the Audit and Compliance Committee and function g) to the Risk Committee.

As indicated in recommendation 34, the Board of Directors (seponsible for establishing and supervising appropriate communication mechanisms and relations with shareholders and investors.

With regard to the responsibilitys relating to company has a Corporate Social Responsibility Committee. This permanent internal body has executive functions and is responsible, among other things, for approving the Social Responsibility strategy and proposing specific actons, niterial Bad The Satish and in the Corporates Social Responsibility Polcy, this Committee reports annual Roble Married Park of Diection espoches and deather in accessed on this respect, on the degree of complance with the Corporate Social Responsibility Policy and strategy,

288

ANNUAL REPORT ON THE CORPORATE GOVERNANCE OF PURLICLY TRADED COMPANIES

1. The corporate social responsibility policy shall include the principles and commitments which the company assumes voluntarily in its relationship with other stakeholders and it should identify at least the following:
2. a)
3. b)
4. c) diversity, fiscal responsibility, respect for human rights, and the prevention of illegal conduct.
5. Methods or systems for monitoring the results of the application of the specific practices indicated above, as well as the d) associated risks and their management.
6. e)
7. f) Channels of communication, participation and dialog with stakeholders.
8. g)

Complies [ X ]	Complies in part [	Explain

The company reports on matters relating to corporate social responsibility in a separate document or within the management report, using one of the internationally accepted methodologies.

Complies { X	Complies in part		Explain

The remuneration of directors must be sufficient to attract and retain board directors from the desired profile and reward the commitment, qualification and responsibility demanded by the position, but not so high that the independence of criteria for nonexecutive board directors is compromised.

Explain [ ] Complies | X |

The executive board directors must receive the variable remuneration relating to the performance of the company and their individual performance, as well as remuneration in the form of shares and instruments referenced to the share value and long-term saving systems such as pension plans, retirement systems or other social protection systems.

The delivery of shares shall be considered as remuneration for non-executive board directors on condition that the shares are held for the duration of the directorship. This does not apply to the shares that a board director needs to transfer, if necessary, to meet the costs related to their acquisition.

Complies in part [ ] Explain [ ] Complies [ X ]

ANNUAL REPORT ON THE CORPORATE GOVERNANCE OF PUBLICLY TRADED COMPANIES

In the case of variable remuneration policies must include the limits and specific technical safeguards to ensure that the remuneration reflects the professional performance of the beneficiaries and not simply the general progress of the markets, the company sector or similar circumstances.

In particular, the variable elements of the remuneration:

a) accepted for achieving a result.
b) such as compliance with the internal rules and procedures of the company and its policies for risk control and management.
c) These are established on the fulfillment of short-, medium- and long-term objectives that allow remuneration of performance for continued performance over a period of sufficient time for its contribution to the sustainable creation of value to be appreciated, so that the elements of measurement of that performance do not revolve solely around specific, occasional or extraordinary events.

Complies [ X ]	Complies in part [	Explain	Not applicable [
----------------	--------------------	---------	------------------

The payment of a significant portion of the variable components of remuneration is deferred for a minimum period that is sufficient to verify compliance with the previously established performance conditions.

Complies [ X ]	Complies in part [ ]	Explain [ ]	Not applicable [ ]
	auditor's report and may compromise the results.		Remuneration linked to the company's results takes into account any reservations that are mentioned in the external

Complies [ X ]	Complies in part [	Explain [	Not applicable [ ]
----------------	--------------------	-----------	--------------------

A significant percentage of the variable remuneration of the executive board directors is linked to the delivery of shares or financial instruments referenced to the share value.

Complies [ X ]	Complies in part [	Explain	Not applicable [ ]
----------------	--------------------	---------	--------------------

୧୦.

868

ANNUAL REPORT ON THE CORPORATE GOVERNANCE OF PUBLICLY TRADED COMPANIES

Once shares, or options or rights to corresponding shares, are allocated to the remuneration system, board directors cannot transfer ownership of a number of shares equivalent to twice their fixed annual remuneration, or rights until after a period of at least three years from their allocation.

This does not apply to the shares that a board director needs to transfer, if necessary, to meet the costs related to their acquisition.

Complies { X ]	Complies in part [	Explain [	Not applicable [
----------------	--------------------	-----------	------------------

The contractual agreements include a clause the company to file a claim for re-payment of variable elements of remuneration when payment has not been adjusted to the performance conditions or when it has been awarded on the basis of data which is subsequently shown to be incorrect.

Complies X ]	Complies in part (	Explain	Not applicable [

Payments for contract termination do not exceed a fixed amount equivalent to two years' total annual remuneration, and shall not be paid until the company has confirmed that the board director has met the pre-established performance criteria.

	Complies (	Complies in part X ]	Explains I	Not applicable
--	------------	------------------------	------------	----------------

For external board directors, there is no indemnification for leaving the position.

Regarding executive board directors, leaving the suspension of the relationship prior to the appointment as executive bard director.

The early termination of the previous relationship (provil of the Good Governance Code for listed companies), except when there is good cause for dismissal, implies indemnification under the terms established by the workers' statute in relation to unfair dismissel.

291

ANNUAL REPORT ON THE CORPORATE GOVERNANCE OF PUBLICLY TRADED COMPANIES

H. OTHER USEFUL INFORMATION

1. covered in the remaining sections of this report, but that should be included in order to provide more complete and explanatory information about the structure and governance practices of the company or group, please provide a brief explanation here.
1. long as they are relevant and not repetitive.

Specifically, indicate whether the company is subject to the corporate governance legislation of any country other than Spain and, if so, include the compulsory information to be provided when different from that required by this report.

sectoral or of another scope. If applicable, the code in question will be identified as well as the date of accession. In particular, it shall mention whether it has adhered to the Code of Good Taxation Practices, of July 20, 2010.

CONTINUATION OF SECTION E.3

Strategic and Corporate Governance Risks

The ethical principles applied to business management is considered as the most effective action to mitigate this type of risk, have been a constant in MAPFRE and are part of its bylaws and dally work.

MAPFRE's global dimension and its presence in markets with very different corporate governance regulations regulations the promote of MAPER r in the system and to procession in the no processor in of them. In order to standardize the business culture, the Board of Mercedes of febrilg contan on and government printered application of allering in en en en energen which, along with, along with Croce of Ethics and Conduct and the Pollcy of Corporate Governance constitute the minimum framework binding on all companies that make up MAPRE and their respective governing bodies.

Together with the foregoing, also of note are the Corporate Social Responsibility Policy, the Internal Code of Conduct relating to rogants with the relegally dise of note and Collection and Interest and Operations Linked to Significant Shareholders and Sentor Roles of Representation and Management.

To reinforce the strict application of the ethical principles of bushess management and the corporate values set forth in these standards, MAFRE has a corporate structure and executive organization that is determined by high and rigorous control and supervision at all levels: local, regional and global.

To ensure compliance and montoring of any possible irregularties, MAPFRE has established two channels for complaints, which are accessible to employees:

The Ethical Channel, which allows any employee of the Group who has doubts about the code of ethics and conduct on who observes a stuation that could lead to a breach or video of the established norms of conduct, can communicate this to the Ethics Committee in a confidential manner.
The Whisteblower Channel enables Group employees to confident financial and accounting irregularities they observe to the Audit and Compliance Committee of MAPFRE S.A.

Additionally, the Criminal Risk Prevention Model approved in April 2017 by the Board of Directors of MAPFRE S.A. establishes the Criminal Risk Attitution, but Childrin Nation Front of Supervisor of Sun of Connection of Check of Chimes that may be attitled to the r reviloding of the mareness on the Upes of criminal risks to which entitles are exposed, and to establish the mehododay in Manage companisor mail and evaluation of the control in nitigate potential crimes. The Criminal Risk Prevention Model applies of MPFRE (egges a representatives, its essociates, its enployees and all the other persons who are under the authority or control of the abve-mentloned persons or who work in their area of management, supervision, vigilance or control.

In October 2019, news about a complaint of alleged fregular action by MAPRE in Brazil in 2009/2010 in relation to Its alliance with Banco do Brasil were published in some digtal media. In spite of the nave elapsed since the publication, the Company has not received any additional news on the patience in other in open in open in the competent administrative or judicial authorities in relation to the arorementioned alleged and bease Nonetheless, an exhaustive internal investigation process has been intitated and is currently underway, and to date, no irregularity whatsever has been unearthed.

Código seguro de verificación (CSV): xIvfjCSHJswnKZUFv5fe	COPIA ELECTRONICA
Esta es una copia auténtica imprimible de un documento por la CNMV, según el artículo 27.3 c) de la Ley 39/2015, de 2 de octubre. Su autenticidad puede ser contrastada a través de la siguiente dirección: https://sede.cnmv.libreAcceso/CSV.aspx

	COMISTON
	NACIONAL
	DEL MERCAD
	DE VALORES

ANNUAL REPORT ON THE CORPORATE GOVERNANCE OF PUBLICLY TRADED COMPANIES

4. Operational Risks

Operational risks are identified and assessed through which is based on a dynamic analysis of each company process, in which the managers of each area or department assess the potential risks that activities and the effectiveness of the controls related to each process. This control is conducted using risk self-evaluation question manuals, invertory of controls associated with risks, assessment of their effectiveness, and the corrective measures in place to mitigate or reduce the risks and/or improve the control environment.

With respect to tax risks, the performance of the field of taxation has always been dominated by compliance with current tax legislation in the termones in which it operates, which constitutes a practical application of the institutional principle of ethically and socially responsible taxation. The risks are handled internally in each juristiction and Tax Affairs departments, subcorracting tax consulting services with the leading companies in the sector whenever required.

***************

Since July 22, 2010 the company has adhered to and comples with the Code of Good Taxation Practices approved and sponsored by the Forum for Large Companies and the Spanish Tax Agency.

This annual report on corporate governance was approved by the company's Board of Directors at its meeting on:

02/11/2020

Indicate whether any board directors voted against the report or abstained.

Yes | | IVI No

KPMG Auditores, S.L. Paseo de la Castellana, 259 C 28046 Madrid

Auditor's Report on the "Information concerning the System of Internal Control over Financial Reporting (ICFR)" of MAPFRE, S.A. for 2019

(Translation from the original in Spanish. In the event of discrepancy, the Spanish-language version prevails.)

To the Directors of MAPFRE, S.A.

As requested by the Board of Directors of MAPFRE, S.A. (the "Company") and in accordance with our proposal letter dated 9 January 2020, we have applied certain procedures to the "Information concerning the ICFR" attached in section F of the Annual Corporate Governance Report of MAPFRE, S.A. for 2019, which summarises the Company's internal control procedures for annual financial reporting.

The Directors are responsible for adopting appropriate measures to reasonably ensure the implementation, maintenance and oversight of an adequate system of internal control, the development of improvements to that system and the preparation and definition of the content of the information concerning the ICFR attached.

In this respect, it should be borne in mind that irrespective of the design and operation of the internal control system adopted by the Company in relation to annual financial reporting, the system may only provide reasonable, but not absolute assurance in relation to the objectives pursued, due to the limitations inherent in any internal control system.

In the course of our audit work on the annual accounts and in accordance with Technical Auditing Standards, our evaluation of the Company's internal control was solely aimed at enabling us to establish the scope, nature and timing of the audit procedures on the Company's annual accounts. Consequently, the scope of our evaluation of the internal control, performed for the purposes of the audit of accounts, was not sufficient to enable us to issue a specific opinion on the efficiency of this internal control over regulated annual financial reporting.

For the purposes of issuing this report, we have applied only the specific procedures described below and set out in the Guidelines for preparing the auditor's report on the information on the system of internal control over financial reporting of listed entities, published on the website of the Spanish National Securities Market Commission (CNMV), which defines the work to be performed, the minimum scope of the work and the content of this report. As the scope of the work resulting from these procedures is in any event limited and substantially less than that of an audit or review of the internal control system, we do not express an opinion on its effectiveness or design or operational efficiency, with respect to the Company's annual financial reporting for 2019 described in the attached Information concerning the ICFR. Consequently, had additional procedures other than those defined in the aforementioned Guidelines been applied, or an audit or review been performed of the internal control system in relation to regulated annual financial reporting, other events or matters could have been identified, which would have been reported to you.

KPMG Auditores S I a limited liability Spanish company and a member firm of the KPMG network of independent member firms affiliated with KPMG hremation and
KPMG network of independent member firms affiliated with KPMG International Castellana, 259C - Torre de Cristal - 28046 Madrid

Reg. Mer Madrid, T. 11.961, F. 90, Sec. 8, H. M -188.007, Inscrip. 9 N.I.F. B-78510153

Moreover, as this special engagement does not constitute an audit of accounts nor is it subject to prevailing legislation regulating the audit of accounts in Spain, we do not express an audit opinion in the terms envisaged in such legislation.

The procedures applied were as follows:

1. Reading and understanding of the information prepared by the Company in relation to the ICFR disclosures included in the directors' report - and evaluation of whether it covers all the information required, taking into account the minimum content described in Section F, concerning the description of the ICFR, the Annual Corporate Governance Report model set out in Spanish National Securities Market Commission (CNMV) Circular 5/2013 of 12 June 2013, subsequently amended by CNMV Circular 7/2015 of 22 December 2015 and CNMV Circular 2/2018 of 12 June 2018 (hereinafter, the CNMV Circulars).
1. to: (i) gain an understanding of the preparation process; (ii) obtain information that allows us to assess whether the terminology used conforms to the definitions contained in the reference framework; (iii) obtain information on whether the control procedures described are in place and operational in the Company.
1. Review of explanatory documentation supporting the information detailed in point 1 above, and which will mainly include that made directly available to those responsible for preparing the descriptive information on the ICFR. This documentation includes reports prepared by internal audit, senior management and other internal or external specialists supporting the audit and compliance committee.
1. ICFR gained as a result of the procedures performed within the framework of the audit work on the annual accounts.
1. Reading of the minutes of the meetings of the Board of Directors, audit and compliance committee and other committees of the Company for the purposes of assessing the consistency of the matters discussed at these meetings in relation to the ICFR with the information detailed in point 1 above.
1. Procurement of a representation letter concerning the work performed, duly signed by those responsible for preparing and drawing up the information detailed in point 1 above.

As a result of the procedures applied to the Information concerning the ICFR, no inconsistencies or incidents have come to light that could affect it.

This report has been prepared exclusively in the context of the requirements established in article 540 of the Revised Spanish Companies Act and the CNMV Circulars for the purposes of the description of the ICFR in Annual Corporate Governance Reports.

KPMG Auditores, S.L.

(Signed on original in Spanish)

Jorge Segovia Delgado

12 February 2020

The Consolidated Annual Accounts for MAPFRE S.A., on the preceding pages 1 to xxx herein, and the Consolidated Management Report on the preceding pages xxx to xxx herein, corresponding to financial year 2019, endorsed by the Secretary of the Board, have been drafted by the Board of Directors at its meeting held on February 11, 2020. The Board Members declare that, as far as they are aware, the aforementioned accounts have been prepared in accordance with the applicable accounting principles and offer a true and fair view of the equity, financial situation, and results of the Company and the companies comprising the consolidation as a whole. Likewise, the Management Report includes a true and fair analysis of the development of the results and of the Company and the Group, and broadly informs, along with the Consolidated Annual Report, of the risks and uncertainties they faces.

Mr. Antonio Huertas Mejías Chairman	Mr. Antonio Gómez Ciria Member

Mr. Ignacio Baeza Gómez	Mr. Luis Hernando de Larramendi Martínez
1st Vice Chairman	Member
Ms. Catalina Miñarro Brugarolas	Mr. Francisco J. Marco Orenes
2nd Vice Chairman	Member
Mr. José Manuel Inchausti Pérez	Mr. Fernando Mata Verdejo
3rd Vice Chairman	Member
Mr. José Antonio Colomer Guiu	Mr. Antonio Miguel-Romero de Olano
Member	Member
Ms. María Leticia de Freitas Costa	Ms. Pilar Perales Viscasillas
Member	Member
Ms. Ana Isabel Fernández Alvarez	Mr. Alfonso Rebuelta Badías
Member	Member
Ms. Rosa M.ª García García	Mr. Ángel Luis Dávila Bermejo
Member	Secretary and Non-Member

The linglish version is a translation of the original for information purposes only. In case of discrepancy, the Spanish version shall prevail.

COPIA ELECTRÓNICA Código seguro de verificación (CSV): xIvfjCSHJswnKZUFv5fe Esta es una copia auténtica imprimible de un documento electrónico por la CNMV, según el artículo 27.3 c) de la Ley 39/2015, de 2 de octubre. Su autenticidad puede ser contrastada a través de la siguiente dirección: https://sede.cnmv.libreAcceso/CSV.aspx

@ MAPFRE

Código seguro de verificación (CSV): xIvfjCSHJswnKZUFv5fe COPIA ELECTRÓNICA Esta es una copia auténtica imprimible de un documento electrónico archivado por la crículo 27.3 c) de la Ley 39/2015, de 2 de octubre. Su autenticidad puede ser contrastada a través de la siguiente dirección: https://sede.cnmv.libreAcceso/CSV.aspx

INTEGRATED REPORT 2019
------------------------	--	--

1.		LETTER FROM THE CHAIRMAN AND CEO
2.		MAPFRE GROUP
		2.1.
	2.2.	Deployment
	2.3.	Key figures
	2.4.	Regulatory framework and environment
		3. BUSINESS MODEL, STRATEGY AND PERFORMANCE
		3.1. Business model
	3.2.	Strategy
	3.3.	Progress of the Plan in 2019 and future prospects
	3.4.	Business performance
		4. CORPORATE GOVERNANCE
		4.1. Corporate governance system
	4.2.	Sustainability by conviction
		4.3. Ethical behavior: main compliance and prevention measures
		5. RISKS AND OPPORTUNITIES
		5.1. Risk management at MAPFRE
		5.2.
		opportunities within MAPFRE.
		6. CREATION OF SHARED VALUE: WE ARE SUSTAINABLE
		6.1. FINANCIAL DIMENSION
		6.2. PRODUCTIVE DIMENSION
		6.3. HUMAN DIMENSION
		6.4. INTELLECTUAL DIMENSION
		6.5. NATURAL DIMENSION

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

	6.6. SOCIAL AND RELATIONAL DIMENSION
	7. ADDITIONAL INFORMATION
	7.1. Basis of preparation and presentation of the Report
7.2.	Materiality
	7.3. Notes
	7.4. Table of Contents GRI
	7.5. Correspondence of GRI content and non-financial information status (Law 11/2018
	of December 28)
	7.6. External Assurance report

COPIA ELECTRÓNICA Código seguro de verificación (CSV): xIvfjCSHJswnKZUFv5fe Esta es una copia autentica inprimble de un documento erhivado por la CNMV, según el alticulo 27.3 d de octubre. Su
autenticidad puede ser contrastada a tavés de la siguin

1. LETTER FROM THE CHAIRMAN AND CEO

[GRI 102-14]

Dear Friends,

In an environment as uncertain and volatile as the one we find ourselves in, with enormous impacts for our climate-related activity and a complex economic, political and social context in many of our countries, it is a pleasure for me to start this letter indicating that 2019 has been a good year for MAPFRE and, by association, for all its stakeholders.

The business has progressed well: we maintained profitable growth at our operations in Spain, and we substantially improved earnings results in both Brazil and the United States, the second and third most relevant markets for MAPFRE. We produced positive returns in practically all countries, which shows that we are successfully executing our strategy based on profitable growth. Attributable earnings from the insurance business, our main activity, exceeded 806 million euros, which is a solid and recurring result, consistent with the strength of our company.

Additionally, the reinsurance business also made a notable contribution to the Group's profit: 77 mil!ion euros. A remarkable figure in that it has been achieved despite the fact that the impact stemming from natural disasters, particularly intense in the Asia-Pacific area, rose substantially last year. MAPFRE Global Risks has also felt the brunt of this rising loss experience. The effects of these natural disasters, despite their exceptional nature or virulence, and regardless of whether they impact on insurance or reinsurance, are in fact the very essence of what our clients expect of us: MAPFRE responds. And this is what we do.

As a global insurer, we assume that responsibility around the world and demonstrate the company's strength and our resilience by making good on each and every one of our commitments. As you will see in the Report, we maintain our solvency ratio very close to 200 percent, within the objective range that we have set for ourselves and with 87 percent of the assets rated Tier 1, that is to say, of the highest quality.

Therefore, although we work to maximize our capabilities and always look for more for MAPFRE, we believe that 2019 has once again been a good year for the Group and, for this reason, we have maintained the dividend for our shareholders, in recognition of the trust they confer on us by investing in the company.

From the business point of view, as I have indicated, the Group is advancing strongly, growing profitably, developing agreements and strengthening the alliances we have and simultaneously, undertaking an intense process of transformation to adapt to the digital

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

environment and continue being a leading insurance company, able to accompany its clients wherever they are headed, regardless of the prevailing conditions.

The Report that I present here shows you an integrated vision of how MAPFRE, in a complex socio-economic environment, is moving forward with its strategy, obtains solid results and generates value for interest groups and society at large.

On previous occasions, I have made notable mention that we believe in a committed company model, a company that holds that, without ethics, there can be no business, and that all our activity has to be tackled in a sustainable manner.

We are working to build the future, firstly, that of our clients, who we protect and help to grow what is important to them, now and into the future, when it will be most necessary. We help companies and institutions, who thanks to MAPFRE, can cover their risks and concentrate their efforts on business development and the creation of wealth and employment. We also build the future of society: we are stable and reliable funders of the sovereign debt of many countries. We invest approximately 40 billion euros in these securities, which allows nation states to finance economic and social policy. And we also build a future for our shareholders, because the sum total of our commitment to sustainability is applied at MAPFRE in all its decisions: we grow, we boost profitability, we approach operations and projects, we execute the day-to-day thinking not just about the present, but also about the future, striving to leave a better company to the generations that come after us.

In 2019, MAPFRE's Board of Directors approved the Sustainability Plan 2019-2021, a transversal roadmap for the entire Group that is allowing us to advance our commitments in environmental, social and governance matters.

"Playing our part" is the rallying cry of all our communication on sustainability: those thousands of individual gestures that coalesce to shape the common objective of protecting the planet and building a future for its inhabitants. Simple but important gestures, such as the fact that the Annual General Meeting 2020 will be the first one certified as both a sustainable and carbon-neutral event.

Among other actions, we actively participated and supported the United Nations Climate Change Conference (COP25) held in Spain, because MAPFRE as a company is taking action to combat the climate emergency. We are working relentlessly to be an emissions-neutral company in Spain and Portugal by 2021, and across the Group as a whole by 2030.

Like any company, we also protect our main assets, and among them, our employees and their talent come first. We are diverse, we defend equal opportunities and we act decisively in the face of all manner of gaps. We integrate people from all walks of life, including those with a disability, and we provide then with healthy working The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

environments that enhance their capacity to create and innovate. Diversity makes us unique, and having the vision of people of more than 80 nationalities heading in the same direction greatly strengthens the capacity and talent of our company.

We promote socially responsible investment because we understand that it is part of the solution to the great challenges facing society. In fact, we are the first company, and so far the only one in the world, to develop an investment fund founded on the greater profitability enjoyed by inclusive companies that actively employ people with disabilities.

We are also good corporate citizens. We are close to the people who need us. Last year, more than 125,000 people received the support and help of 10,300 MAPFRE professionals and their families worldwide, through their commitment to the Corporate Volunteering Program.

We assume our responsibility in sustainable development, fully committing to the United Nations Global Compact and the Sustainable Development Goals (SDGs) of the 2030 Agenda. But we know that we cannot do it alone, nor do we want to do it alone, we need to be accompanied by our employees, clients, shareholders, providers, distributors and society in general, on the road we started out on more than eight decades ago, so that together, we can continue making the future possible.

On my own behalf and on that of the Board of Directors, I conclude by expressing my gratitude for the support and trust that our shareholders and other stakeholders show in us. This drives us to continue advancing in our double commitment: to generate a powerful financial dividend, and to generate an enormous social dividend.

Antonio Huertas Mejías

The English version is a translation of the original in information purposes only. In case of discrepancy, the Spanish version shall prevail.

2. MAPFRE GROUP

[GRI 102-1, 102-2, 102-3, 102-4, 102-5, 102-18; L.11/2018]

2.1. Functional and shareholder structure

MAPFRE S.A. (hereinafter the "Company") is a global company principally engaged in insurance and reinsurance activities in 44 countries worldwide.

The company's origins can be traced to MAPFRE MUTUALIDAD, created in 1933 by the Association of Owners of Rural Properties in Spain to mutually cover the risks arising from their farming activities. In the 1960s, it embarked on a process of business expansion consisting of the creation of subsidiary trading companies. In 1980, these companies were grouped into the holding company CORPORACIÓN MAPFRE (now MAPFRE S.A.) and international expansion ensued, mainly in Latin America.

The English version is a translation of the original in Spanish for information purposes only. In ease of discrepancy, the Spanish version shall prevail.

Today, MAPFRE is the largest Spanish-owned insurance company in the world and the third largest insurance group in Latin America.

MAPFRE has:

The Group pursues its business activities through an organizational structure made up of four Business Units (Insurance, Assistance, Global Risks and Reinsurance); three Territorial Areas (IBERIA, LATAM and INTERNATIONAL); and six Regional Areas (Iberia (Spain and Portugal), Brazil, LATAM North (Central America and the Dominican Republic), LATAM South, North America and EURASIA (Europe, Middle East, Africa and Asia-Pacific).

The Insurance Business Unit is organized in line with the regional areas, which are the geographic units that plan, support and oversee the region. The Reinsurance and Global Risks units are merged within MAPFRE RE.

The activities of the different Business Units are supplemented by those of the Corporate Areas (Internal Audit, Strategy and M&A, Finance and Resources, Investments, Business and Clients, Operations, People and Organization, External Relations and Communication, General Counsel and Legal Affairs, Business Support, IT and Processes), which have global competencies for all MAPFRE companies in the world in terms of the development, implementation and monitoring of global, regional and local corporate policies.

The Group has changed its structure in recent years in order to the strategic challenges facing a company of its global size and presence.

The English version is a translation of the original in Spanish for information purposes only. In esse of discrepancy, the Spanish version shall preval.

The Group's current organizational chart is as follows:

Shareholder composition

The Group's parent company is the holding company, MAPFRE S.A., whose shares are listed on the Madrid and Barcelona Stock Exchanges. MAPFRE S.A. is also a component of the IBEX 35, IBEX Top Dividend, STOXX Europe 600 Insurance, EURO STOXX Insurance, MSCI Spain, FTSE All-World, FTSE Developed Europe, FTSE4Good, FTSE4Good IBEX, Dow Jones Sustainability World and Ethibel Sustainability Index (ESI) Excellence Europe indices.

The majority shareholder of MAPFRE S.A. shares is Fundación MAPFRE, which owns 67.7 percent of the share capital, thus guaranteeing the Group's independence and institutional stability. Fundación MAPFRE engages in activities of general interest in the fields of Social Action, Insurance and Social Protection, Culture, Accident Prevention and Road Safety, and Health Promotion.
- At the close of the financial year, MAPFRE S.A. has 30,489,839 treasury shares, representing 0.99 percent of the capital.

The English version is a translation of the original in Spanish for information purposes only. In ease of discrepancy, the Spanish version shall prevail.

2.2. Deployment

[GRI 102-4, 102-6, 102-7]

MAPFRE operates in a total of 44 countries through 221 companies, with a network of 13,024 offices (7,914 of them for bancassurance) and more than 79,000 agents and intermediaries.

	BUSINESS
COUNTRY	ASISTENCIA	GLOBAL RISKS	REINSURANCE	DIRECT INSURANCE
GERMANY
ALGERIA
ARGENTINA
AUSTRALIA
BAHRAIN
BELGIUM
BRAZIL
CANADA
CHILE
CHINA
COLOMBIA
COSTA RICA
ECUADOR
EL SALVADOR
UNITED ARAB EMIRATES
SPAIN
UNITED STATES
PHILIPPINES				œ
FRANCE

The following is the geographic presence of MAPFRE through its business units:

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

	BUSINESS
COUNTRY	SISTENCIA	GLOBAL RISKS	REINSURANCE	DIRECT INSURANCE
GREECE
GUATEMALA
HONDURAS
HUNGARY
INDONESIA
IRELAND
ITALY
JAPAN
JORDAN
MALAYSIA
MALTA
MEXICO
NICARAGUA
PANAMA
PARAGUAY
PERU
PORTUGAL
PUERTO RICO
UNITED KINGDOM
DOMINICAN REPUBLIC
SINGAPORE
TUNISIA
TURKEY
URUGUAY
VENEZI IFI A

copia electrónica Código seguro de verificación (CSV): xIvfjCSHJswnKZUFv5fe autenticidad puede ser contrastada a través de la siguiente dirección: https://sede.cnmv.libreAcceso/CSV.aspx

COUNTRY	No. EMPLOYEES	COUNTRY	No. EMPLONES	COUNTRY	No. EMPLOYEES
GERMANY	ટેટિટ	UNITED STATES	2,616	PERU	1,536
ALGERIA	49	PHILIPPINES	314	PORTUGAL	411
ARGENTINA	1, 105	FRANCE	ਟਤੋ	PUERTO RICO	614
AUSTRALIA	દિવે	GREECE	110	UNITED KINGDOM	દ્વવિ
BAHRAIN	ਹਵ	GUATEMALA	187	DOMINICAN REPUBLIC	424
BELGIUM	21	HONDURAS	219	TUNISIA	74
BRAZIL	5,762	INDIA	6	TURKEY	1,289
CANADA	ਹਵ	INDONESIA	548	URUGUAY	178
CHILE	503	IRELAND	92	VENEZUELA	440
CHINA	139	ITALY	877	OTHERS (Hungrary, Japan, Taiwan and Singapore)	46
COLOMBIA	ರಿಕೆಡಿ	JORDAN	49
COSTA RICA	72	MALTA	318
ECUADOR	334	MEXICO	1,748
ELSALVADOR	180	NICARAGUA	122
UNITED ARAB EMIRATES	9	PANAMA	486
SPAIN	11,032	PARAGUAY	198
34,324 TOTAL EMPLOYEES AS ON 31.12.2019

The number of employees in the Group per country is as follows:

Offices and intermediaries are broken down by geographic area as follows:

Offices	2019	2018
Total	13,024	12,526
IBERIA	5,655	5,413
LATAM	6,773	6,570
INTERNATIONAL	596	543

INTERMEDIARIES	2019	2018
Total	79,239	86,564
IBERIA	17,563	17,914
LATAM	52,184	56,682
INTERNATIONAL	9,492	11,968

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

2.3. Key figures

[GRI 102-7, 201-1]

国家财	DECEM BER	DECEMBER	Var.%
	2019	2018	19/18
RESULTS
Revenues	28,472.2	26,589.7	7.1%
Written and accepted premiums	23,043.9	22,537.1	2.2%
- Non-Life	17,559.1	17,060.9	2.9%
- Life	5,484.8	5,476.2	0.2%
Attributable net result	609.2	528.9	15.2%
Non-Life Loss Ratio	69.0%	69.8%	-0.8 p.p
Non-Life Expense Ratio	28.6%	27.8%	0.8 p.p
Non-Life Combined Ratio	97.6%	97.6%	0.0 p.p
Earnings per share (euros)	0.20	0.17	15.2%
BALANCE
Total assets	72,509.9	67,290.8	7.8%
Assets under management	63,637.8	58,484.6	8.8%
Shareholders' equity	8,854.3	7,993.8	10.8%
Debt	2,973.7	2,670.3	11.4%
ROE	7.2%	6.4%	0.9 p.p
Adjusted ROE*	8.0%	8.4%	-0.5 p.p
EMPLOYEES AT THE CLOSE OF THE PERIOD
Total	34,324	35,390	-3.0%
- Spain	11,032	10,918	1.0%
- Other countries	23,292	24,472	-4.8%
THE MAPFRE SHARE
Market capitalization	7,267.7	7,144.6	1.7%
Share price (euros)	2.36	2.32	1.7%

	SERIEWER BEREARDEREAR
SOLVENCY
Solvency ratio	194.6%	189.5%	5.1 p.p

Figures in million euros

*Excluding goodwill writedown

MAPFRE S.A. and its subsidiaries are rated by the main ratings agencies. These agencies were selected on the basis of their international presence, their relevance for the insurance industry and capital markets, and for their level of experience.

The most important credit ratings currently granted by the main ratings agencies are listed next.

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

	S&P	Fitch	Moody's	A.M. Best
MAPFRE S.A. - Issuer	A- (Stable)	A- (Stable)
MAPFRE S.A. - Senior debt	A-	BBB+
MAPFRE S.A. - Subordinated debt	BBB	BB-

Financial strength
- MAPFRE RE	A+ (Stable)	A+ (Stable)		A (Stable)
- MAPFRE ESPAÑA		A+ (Stable)		A (Stable)
- MAPFRE VIDA		A+ (Stable)
- MAPFRE ASISTENCIA		A+ (Stable)	A2 (Stable)
Company		Country 1 2 2 Rating type	Rating	Outlook
Fitch
MAPFRE SIGORTA A.S.	Turkey	Financial strength	AA+ (tur)	Stable
MAPFRE SEGUROS GENERALES DE COLOMBIA	Colombia	Financial strength	AA (col)	Stable
A.M. Best
MAPFRE U.S.A. Group	USA	Financial strength	A	Stable
MAPFRE PRAICO	Puerto Rico	Financial strength	A	Stable
MAPFRE MÉXICO	Mexico	Financial strength	A	Stable
(1) S&P Global Ratings Europe Limited.

(2) Fitch Ratings Limited

(3) Moody's Investors Service Ltd.

(4) A.M. Best Europe - Rating Services Ltd.

The companies indicated above are established in the European Union and registered as credit rating agencies in compliance with Regulation (EC) No. 1060/2009 of the European Parliament and of the Council of September 16, 2009.

2.4. Regulatory framework and environment

[GRI 102-15]

Regulatory framework

MAPFRE is a limited liability company constituted in Spain, regulated by the Recast Text of the Corporation Act approved by Royal Legislative Decree 1/2010 of July 2, 2010 and corresponding regulations.

As the dominant company in a consolidated group that includes insurance companies, MAPFRE must maintain the consolidated solvency margin required under Law 20/2015 of July 14, 2015 regarding the ordering, supervision and solvency of insurance and reinsurance companies, under Royal Decree 1060/2015 of November 20, 2015 regarding the ordering, supervision and solvency of insurance and reinsurance companies and the accounting standards that regulate insurance activity.

Since January 1, 2016, the Company and its insurance and reinsurance subsidiaries operating in the European Union are subject to the supervision and solvency regulations of Directive 2009/138/EC of the European Parliament and of the Council of November 25, 2009, regarding life insurance, access to insurance and reinsurance activity and its exercise (Solvency II) and corresponding regulations. In March 2019, the European Commission adopted the amendment of Delegated Regulation (EU) 2015/35 on Solvency II, which affects several elements used in the calculation of solvency capital requirement under the standard formula.

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

In addition, the consolidated annual accounts of the Group are prepared in accordance with the International Financial Reporting Standards adopted by the European Union (IFRS-EU). In 2019, IFRS-EU 16 "Leasing," which sets out the principles applicable to the recognition, valuation and presentation of leases, as well as information to be disclosed, entered into force. In addition, the Group is analyzing the impact of IFRS-EU 17 "Insurance Contracts," which is expected to apply to the fiscal years starting on January 1, 2022.

The insurance companies in which MAPFRE holds an interest are subject to the specific regulations governing this activity in the various countries in which they operate.

Environment

The growth of the world economy has fallen from 3.6 percent in 2018 to 3 percent in 2019. This evolution is a consequence of the commercial tensions between the United States and China; the prospect of raising tariffs in other countries; the uncertainty of Brexit, and, from a structural perspective, the point of the economic cycle at which the global economy finds itself.

In developed countries, the group of G7 economies grew by 1.6 percent, with the United States up 2.3 percent and the eurozone at 1.2 percent. In addition, emerging economies have maintained their high levels of growth, although these are lower than the previous year: China rose 6.1 percent, the group of emerging economies increased by 3.9 percent, and Asian emerging economies were up 5.9 percent.

For the year 2020 globally, the average growth is expected to be again around 3 percent, and will possibly accelerate after 2021. A recession can be ruled out at the moment, unless undetected risks arise that cause an adjustment in a systemic economy.

Predictions on the development of macroeconomic figures for the principal markets in which MAPFRE operates are as follows:

The English version is a translation of the original in Spanish for information purposes only. In Spanish version shall prevail.

11 13 31 7	BRAZIL		SPAIN		UNITED STATES		MEXICO		TURKEY
	2019 (E)	2020 (P)	2019 (E)	2020 (b)	2019 (E)	2020 (b)	2019 (E)	2020 (P)	2019 (E)	2020 (P)
GDP	0.8%	1.7%	2.0%	1.8%	2.3%	1.6%	0.0%	1.1%	0.2%	2.5%
(% YoY, a verage)
CPI	3.3%	3.7%	0.8%	1.4%	1.8%	2.0%	3.2%	3.4%	10.5% 10.8%
(% YoY, a verage)
Unemployment		11.1% 10.1%	13.8% 12.9%		3.5%	3.6%	3.6%	3.9%	13.6%	12.8%
(% EAP*, average)
Official interest rate	4.0%	5.0%	0.0%	0.0%	1.5%	1.5%	7.3%	7.3%		14.8% 12.8%
Population	211.8	213.3	47.1	47.2	331.2 333.5		128.3	129.6	83.4	84.3
(Millions of people)

Source: MAPFRE Economic Research. Data 2019 estimated (E) and 2020 forecasted (F)

*EAP = Economically Active Population

The development of the Non-Life and Life Protection insurance business maintains its strong relationship with the behavior of the economic cycle. In this sense, premium growth is limited by investment and consumption patterns. In the case of emerging countries, the low insurance penetration rate means that the long-term growth trend is positive and increasing.

In addition, the Life Savings insurance business is negatively affected by the continuity of the accommodative policies of the main central banks. The lax monetary bias will cause the negative or flat interest rate curves of many developed countries to be maintained for quite some time, with the consequential implications that this has for the financial profitability of insurance companies.

In 2018, the latest data available, the world insurance market registered estimated growth of 1.5 percent in real terms, generating a total value of direct insurance premiums of 5.2 billion dollars.

The sector ratios for the Non-Life segment in principal markets where MAPFRE operates have shown the following development:

COUNTIERY		COMBINED RATIO (Market)	Date	ROE (Market)
	Loss Ratio	Expense Rauo	Total		2018
Brazil	41.7%	50.1%	91.8%	Sept-19	17.3%
Spain	70.1%	22.1%	92.3%	Sept-19	11.4%
United States	71.4%	27.3%	98.7%	Dec-19	9.0%
Mexico	73.6%	29.3%	102.8%	Sept-19	22.1%
Turkey	77.1%	28.2%	105.3%	Sept-19	25.1%

Source: MAPFRE Economic Research.

The Combined Ratios for Mexico and Brazil include Non-Life and Life

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

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<-- PDF CHUNK SEPARATOR -->

3. BUSINESS MODEL, STRATEGY AND PERFORMANCE

[GRI 102-2, 102-6, 102-14]

Business model 3.1.

The vision of MAPFRE is to be THE MOST TRUSTED GLOBAL INSURANCE COMPANY, a concept that refers not only to its geographic presence but also to the wide range of insurance and reinsurance products and services that it promotes worldwide. It aims to become a leader in the markets in which it operates, through its proprietary and differentiated business model, based on transformation and innovation. It is designed to achieve profitable growth with clear and decisive focus on the client, both private and corporate, a multi-channel approach and a firm vocation for service.

The influx of new insurance business models - insurtech - based on digital tools is causing a veritable revolution in the sector, and MAPFRE is acting swiftly in order to offer all its stakeholders value experiences. With the business model that MAPFRE has adopted, we are not focused solely on financial results, but also on the social sphere.

Accordingly, MAPFRE:

= Is firmly committed to growth, both in terms of business volume and geographic development, generating suitable and sufficient profitability from its activities.

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

* Manages its business in an efficient manner and constantly improves productivity, reducing structural costs continuously in order to enhance its competitiveness.
" Professionally manages the risks it assumes, ensuring sustainable growth and results.
Steers its development by diversifying its portfolio of insurance, reinsurance and service businesses as a means of boosting growth and minimizing risks.
Deploys a global management model with ample capacity for local implementation, ensuring an appropriate balance between corporate involvement and business development in each country.
Makes its resources available to the entire organization, thus harnessing the synergies derived from sharing talent, processes and tools.
Promotes specialized management as a means of continuously optimizing results and enhancing service quality.

[GRI 102-16]

This commitment to continuous improvement is underpinned by the following values, which assist in executing the mission and achieving the company's vision:

Solvency: financial strength with sustainable results and full capacity to meet all obligations to stakeholders.
Integrity: ethical conduct as a core element in how everyone (executives, employees, agents and collaborators) behaves, with a socially responsible focus on all long-term activities and commitments.
Vocation for service: the constant quest for excellence in the pursuit of its activities and a continuous focus on building strong relationships with clients.
Innovation for leadership: differentiation as a key aspect of continuous growth and improvement, using technology to service the different businesses and their objectives.
Committed team: full engagement of employees, senior executives, agents and other collaborators with the MAPFRE project and continuous development of the team's skills and abilities.

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

The resources that MAPFRE deploys to create sustained value are its main assets, and correspond to the following dimensions:

1. Financial Dimension: economic resources to develop the business, generated either through operations or investments or obtained through financing.
1. Productive Dimension: assets or goods and services used to pursue different activities.
1. Human Dimension: the skills, knowledge, abilities and experience of the people employed by the organization.
1. Intellectual Dimension: knowledge-based intangible assets that favor both intellectual property as well as knowledge of systems, procedures and protocols.
1. Natural Dimension: appropriate management of natural resources and contribution to climate change mitigation and biodiversity conservation.
1. Social and Relational Dimension: trust-based relationships generated with stakeholders; contribution to the development and well-being of the community; and other intangible assets related to the brand and its reputation.

MAPFRE offers people a complete personal lines insurance program that is adapted to the different countries in which it operates, through a wide insurance offering of Life, Health, Accident, General P&C (homeowners, automobile, third-party liability, family, etc.), Savings and Investment, Retirement, Burial, Travel and Lifestyle policies.

MAPFRE helps professionals, entrepreneurs, self-employed people and small companies to develop their commercial undertakings, offering a broad portfolio of products and services that enable them to concentrate on their professional activity (with solutions for vehicles, third-party liability and assets, agriculture and livestock, commercial establishments, etc.), while also insuring their personal risks (accidents, health, Life, retirement, savings and investments).

The company also offers specific solutions for small and medium-sized enterprises as well as large corporations, with a range of products and services adapted to the activity of each organization, at local, national and global level, and tailored to the management model of each client, with products for Vehicles, Third-Party Liability and General P&C, Engineering and Buildings, Hulls and Aviation, Goods Transportation, Agribusiness, Surety and Credit, Group Health, Accident, Life and Retirement Insurance, among others.

Additionally, MAPFRE supplements its insurance activities with a range of reinsurance products.

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

MAPFRE is determined to maintain its own networks in the countries where it operates, which are compatible with the use of other distribution channels. Some of the key features behind the success of MAPFRE's business model are its client orientation, global product offering, and adaptation to the legal and commercial nature of each market.

MAPFRE's own networks are supplemented by its distribution capacity as a result of the signing of agreements with different companies, notably its bancassurance agreements, but also including those with other financial companies, automobile dealerships, shopping malls and service companies, etc.

MAPFRE's stated mission is to develop the best possible relationships with its stakeholders, which include employees, clients, distributors, providers, shareholders and society in general. For more information, please consult the Social and Relational Dimension chapter.

3.2. Strategy

At MAPFRE we are transforming ourselves to grow profitably. Digitalization and innovation are key components of this evolution. Transformation will be ever present in all that we do, acting as a veritable driver across the entire company. Our strategy is based on three pillars:

Client orientation

Our team is 100 percent client oriented. We are committed to a competitive model, which puts clients at the center of everything we do, with the aim of offering an optimal experience at every moment of contact with MAPFRE. We want to know, understand and enhance client loyalty, increase productivity in all our channels and innovate in products, services and experiences for our clients.

The English version is a translation of the original in Spanish for information purposes only. In espanish version shall prevail.

Excellence in technical and operational management:

We work to improve our efficiency, adapting our structure to offer an excellent service, with a global, flexible and open technology that enables us to increase our competitiveness.

Culture and Talent:

Strengthening the commitment of everyone working at MAPFRE, we wish to continue adapting to changes with new skills that allow us to face future challenges. We keep working to be a benchmark in terms of sustainability. MAPFRE is a group committed to sustainable development and, especially, to the fight against climate change.

The first year of the Strategic Plan 2019-2021 "Transforming ourselves for growth and improved profitability" has been a year marked by environmental catastrophes (typhoons such as Faxai and Hagibis are some examples of catastrophes that have had a high impact on the attributable result of MAPFRE) and the volatility and political, economic and social uncertainty in the different markets where MAPFRE operates. In light of these circumstances, we have made an adjustment to the public aspirational objectives for the period 2019-2021, creating six points and aligning these to the reality of the markets without losing sight of the ambition that has always characterized MAPFRE.

3.3. Progress of the Plan in 2019 and future prospects

[GRI 102-15]

3.3.1. Progress of the Plan in 2019

The main developments in the aspirational objectives and initiatives that drive each of the plan's pillars were:

1. Profitable growth

Objectives from a profitable growth point of view:

2019 data:

ROE: 8.0 percent (excluding goodwill impairment adjustments).
Revenue: 28.47 billion euros.

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

Digital business revenues: 1.33 billion euros (+16.7).
Growth in Life Protection Premiums at constant value: 9.2 percent.

2. Client orientation

The objectives for this pillar are:

2019 data:

Percentage of businesses with an NPS® higher than the market average: 86.3%.
-

To speed up changes to this pillar, investments have been made in a number of initiatives:

Client focus: we are adapting our sales offering and value proposition, our operations, structure and technology, to offer a better quality and an enhanced client experience.
Digital business plan: we continue to strengthen our digital business by increasing investment in digital marketing, price comparison tools and digital tools in the operations of VERTI, INSUREANDGO and MAPFRE DIGITAL.
Digital health: we are taking advantage of the opportunities offered by digitalization to develop a business model that allows us to lead in the Health line.
Large cities: by understanding the new dynamics of big cities, initiatives are being developed that will allow us to increase our market share, having started in Madrid and Barcelona.
SAM 3.0: we are developing capabilities in response to new trends in the world of cars and new mobility (ADAS, UBI, etc.).

3. Excellence in technical and operational management

The objectives for this pillar are:

	Rigorously ===================================================================================================================================================================		Reduce Reduce	Open and flexible
Excellence in	I manage risks at quality service			costs to be global technology,
operational		all levels of the provision and	Emore	with advanced
and technical	organization	operational =	I competitive analytics
management		efficiency is

2019 data:

Non-Life combined ratio: 97.6 percent.
Number of automated transactions: 18.7 million transactions.

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall preval.

To speed up changes to this pillar, investments have been made in a number of initiatives:

Global efficiency model: initiative that seeks to increase efficiency, productivity and a decrease of operational costs by means of the development of operational models that address standardization, integration, improvement of processes and automation, among other things, with full focus on the client, to improve the competitiveness of MAPFRE.
Advanced Analytics: we are making a determined investment in data, developing a platform that will enable us to move from a decision-making process based on structured information to incorporate new sources of unstructured data, which will allow us to better understand and meet the needs of our clients. In line with this objective, the post of Chief Data Officer was created in 2019.

Culture and talent ব

The objectives for this pillar are:

2019 data:

Culture and talent index: 80.8 percent.
Percentage of new managerial job positions covered by women: 48.3 percent.
Percentage of workforce with a disability: 2.9 percent.

Another objective was to position MAPFRE as a benchmark in sustainability. The Board of Directors of MAPFRE S.A. approved the lines of action, projects and objectives of the global sustainability plan 2019-2021.

The main initiative underpinning this pillar is the Digital Challenge, which is managing the change involved in adapting the organization to the new digital requirements, providing the work environment with flexibility and agility and tools that allow collaborative work and knowledge-sharing. In addition, new behaviors (collaborating, innovating and streamlining) are being promoted, and digital and strategic profiles and new forms of leadership are being developed.

3.3.2. Future prospects for the Strategic Plan 2019-2021

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

The year 2019 was marked by the impact of catastrophic events and social uncertainty in the different markets in which MAPFRE operates. Therefore, it has been necessary to adjust the aspirational public objectives for the 2019-2021 period, which are to be presented at the General Shareholders Meeting.

3.4. Business performance

[GRI 102-2, 102-6]

3.4.1. Relevant events

[GR] 102-10]

Among the relevant corporate events of the 2019 fiscal year, the following should be noted:

Significant economic events

Impairment of goodwill in MAPFRE ASISTENCIA investee companies.

Other relevant events in sustainability

MAPFRE is named in the Dow Jones Sustainability World Index for a second consecutive year, and in the FTSE4Good for the 13th consecutive year. These indices are acknowledged as two of the most important international barometers in measuring corporate performance in terms of sustainability and CSR.
MAPFRE was included in the Sustainability Yearbook 2019, prepared by the investment consultant RobecoSAM.

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

· MAPFRE partnered with SpainSIF, a non-profit organization that is a reference point for all financial institutions in terms of sustainable and responsible investment in Spain.
Together with La Financière Responsable, MAPFRE launched a fund to invest in companies that promote the inclusion of people with disabilities, the first of its kind to be launched globally.
MAPFRE participated in the United Nations Climate Change Conference (COP25), demonstrating its commitment to environmental protection.

3.4.1 Information by business unit.

[GRI ESE]

The information in this chapter is supplemented by the Annual Accounts and Consolidated Management Report, which are available on the corporate website.

The Non-Life combined ratios, premiums and attributable results are detailed by business unit:

Key figures

	PREMIUMS			ATTRIBUTABLE RESULT	COMBINED RATIO
	DECEMBER 2019	Var. % 19/18	DECEMBER 2019	Var. % 19/18	DECEMBER 2019	DECEMBER 2018
IBERIA	7,717.8	0.8%	497.8	3.6%	94.4%	93.8%
LATAM	7,547.3	9.6%	214.9	36.9%	94.4%	98.2%
INTERNATIONAL	4,027.3	-3.9%	93.7	97.6%	102.3%	103.5%
TOTAL INSURANCE	19,292.4	3.0%	806.4	17.7%	96.5%	97.8%
REINSURANCE AND GLOBAL RISKS*	5,580.5	12.5%	57.5	-65.9%	101.0%	95.6%
ASISTENCIA	861.0	-5.5%	(88.0)		103.3%	103.5%
Holding, eliminations and other	(2,690.0)	-29.9%	(166.7)	47.0%
MAPFRE S.A.	23,043.9	2.2%	609.2	15.2%	97.6%	97.6%

The English version is a translation of the original in information purposes only. In case of discrepancy, the Spanish version shall prevail.

CNMV Oficina: ROD MADRID Registro de Entrada Nº: 2020018771 Fecha de registro: 2020-02-12 01:18:30

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Premiums by geographic area

Attributable Result by Business Unit

Figures in million euros

The Group's consolidated revenues amounted to 28.47 billion euros, an increase of 7.1 percent, mainly due to the increase in the issuing of premiums and higher financial income.

The accepted direct insurance and reinsurance premiums, which represent the vast majority of volume, amounted to 23.04 billion euros, up by 2.2 percent, mainly due to positive performance by countries such as Mexico, Peru and the Dominican Republic. In June 2019, the PEMEX comprehensive multi-year damage policy (two years) was renewed for 502.9 million dollars (449.8 million euros).
- This increase in premium growth is framed within the Group's strategy of profitable growth, which aims to improve profitability mainly in Non-Life insurance.

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

Cumulative attributable profits to December 2019 were 609.2 million euros, an increase of 15.2 percent. It should be borne in mind that the financial year 2018 was affected by the extraordinary deterioration of goodwill amounting to 173.5 million euros, while, in 2019, the extraordinary deterioration of goodwill and the provision for restructuring expenses in participating companies of MAPFRE ASISTENCIA have had a joint impact of 75.6 million euros on the Group's attributed result. If both effects are eliminated, the recurring result would fall by 3.1 percent against the previous financial year.

INSURANCE UNIT

3.4.2.1. IBERIA

IBERIA encompasses the business activities of MAPFRE ESPAÑA and its subsidiary in Portugal, as well as the Life business managed by MAPFRE VIDA and its bancassurance subsidiaries. It represents 30 percent of the total premiums of the Group.

Information by country

	Premiums		Attributable result		Combined ratio
	2019	19/18	DECEMBER Var. % DECEMBER 2019	Var.% 19/18	DECEMBER DECEMBER 2019	2018
IBERIA	7,717.8	0.8%	497.8	3.6%	94.4%	93.8%
SPAIN	7.582.3	0.8%	488.7	4.7%	94.4%	93.7%
PORTUGAL	135.4	1.1%	9.1	-34.4%	95.9%	96.5% I

Figures in million euros

Spain is MAPFRE's main market in terms of contribution to the business.

In 2019, MAPFRE ESPAÑA continued to lead the Non-Life insurance rankings in 2019, maintaining its position as a benchmark insurance company in Spain.

Premiums for main lines of business

The English version is a translation of the original in Spanish for information purposes only. In espanish version shall prevail.

Workforce and distribution network

* Does not include Corporate Areas

Market shares

MAPFRE maximizes the backing and strength of its sales network.

(1) Estimated market shares, using provisional data published by ICEA, which only takes into account direct insurance premiums written. The figures include premiums written by MAPFRE GLOBAL RISKS.

(2) Source: Portuguese Association of Insurance Companies

MAPFRE maintains an outstanding position in the Direct Insurance market, growing for ten consecutive quarters above the market in Spain.

The overall figures for market share in the Direct Insurance market in Spain are provided below:

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

DIRECT INSURANCE - RANKING BY GROUPS 2019
NIO.	Group	Market share 961
1	VIDACAIXA	13.38
2	MAPFRE	11.43
3	MUTUA MADRILEÑA GROUP	8.50
4	ALLIANZ	5.35
5	GRUPO CATALANA OCCIDENTE	4.76
б	ZURICH	4.60
7	AXA GROUP	4.60
8	SANTALUCIA	3.83
த	GENERALI	3.80
10	SANTANDER SEGUROS	2.64
11	GRUPO CASER	2.36
	Other companies	34.75
	Total sector	100.0

* Estimated market shares, using provisional data published by ICEA, which only takes into account direct insurance premiums written. The figures include premiums written by MAPFRE GLOBAL RISKS.

3.4.2.2. LATAM

LATAM comprises the regional areas of Brazil, LATAM North and LATAM South and represents 29 percent of total Group premiums.

Information by region

	PREMIUMS		ATTRIBUTABLE RESULT		COMBINED RATIO
	DECEMBER 2019 -	19/18	Var.% December Var.% December December 2019 -	19/18	2019	2018
BRAZIL	3.977.5	0.1%	97.0	79.1%	92.2%	98.5%
LATAM NORTH	1,973.1	50.7%	63.1	44.6%	94.7%	98.1%
LATAM SOUTH	1,596.7	-0.6%	54.8	-7.3%	100.0%	97.3%

Figures in million euros

The English version is a translation of the original in information purposes only. In case of discrepancy, the Spanish version shall prevail.

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Código seguro de verificación (CSV): xlvfjCSHJswnKZUFv5fe COPIA ELECTRÓNICA Esta es una copia auténtica imprimible de un documento electrónico archivado 27. 3 de la Ley 39/2015, de 2 de octube. Su autenticidad puede ser contrastada a través de la siguiente dirección: https://sede.cnmv.libreAcceso/CSV.aspx

Premiums for main lines of business

Workforce and distribution network

* Does not include Corporate Areas

Market shares

The overall figures for market share in the Non-Life insurance market in Latin America are provided below:

NONELLE INSURANCE RANKING BY GROUP 2018
No.	I Group I	Premiums million USDI	Market share 1%
1	MAPFRE	6,023	7.2
2	ZURICH	3,570	4.3
3	PORTO SEGURO	3,497	4.2
4	GRUPO SURA	3,350	4.0
5	TRIPLE-S	2,914	3.5
б	INNOVACARE	2,610	3.1
7	CHUBB	2,370	2.9
8	AXA	2,347	2.8
இ	MCS	2,195	2.6
10	TALANX	2,099	2.5
Subtotal		30,975	37.1
	Total sector	83,095	100

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

Source: MAPFRE Economic Research (with data from the supervisory bodies of the region)

BRAZIL

This regional area encompasses insurance activity in Brazil.

Brazil represents 15 percent of the total premiums of the Group, and is the second largest market for MAPFRE based on contribution to business.

Performance for main lines of business

	PREMIUMS		ATTRIBUTABLE RESULT
	DECEMBER 2019	Ware 9 19/18		Vary 19/18
UFE	1,502.5	10.8%	2019 50.9	1.1%
AUTOMOBILE	842.7	-16.9%	-18.8	66.4%
GENERAL P&C	1,629.6	1.9%	66.6	46.4%

Figures in million euros

Market shares

MAPFRE holds second place in the Non-Life group ranking in Brazil, with a market share in November 2019 of 12.8 percent.

LATAM NORTH

This includes operations in Mexico and the sub-region of Central America and the Dominican Republic, which includes Panama, the Dominican Republic, Honduras, Guatemala, Costa Rica, El Salvador and Nicaragua.

lt represents 8 percent of the total premium volume of the Group.

Performance of key countries

	PREMIUMS		ATTRIBUTABLE RESULT		COMBINED RATIO
	DECEMBER 2019	Var % 19/18	DECEMBER 2019	Var % 19/18	DECEMBER DECEMBER 2019	2018
MEXICO	1,324.8	84.2%	25.1	38.9%	98.1%	101.8%
PANAMA	223.0	9.3%	7.0	65.8%	95.4%	99.1%
DOMINICAN REPUBLIC	149.4	13.9%	11.7	25.3%	86.2%	88.0%
HONDURAS	79.0	2.2%	6.2	8.7%	87.1%	81.4%
GUATEMALA	74.3	18.3%	6.3	62.0%	87.5%	93.8%

Figures in million euros

The English version is a translation of the original in Spanish for information purposes only. In Case of discrepancy, the Spanish version shall prevail.

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Market shares

Source: MAPFRE Economic Research, using data from the supervisory body in each country

LATAM SOUTH

This regional area encompasses business activities in Peru, Colombia, Argentina, Chile, Uruguay, Paraguay and Ecuador, and contributes 6 percent of MAPFRE's total premium volume.

Performance of key countries

		PREMIUMS		ATTRIBUTABLE RESULT		COMBINED RATIO
	EDECEMBER F	Var %	DEGEMBER	Var. %	EDECEMBER DECEMBER	2018
COLOMBIA	2011 9:1 379.9	1974 8 -2.9%	2019 5.2	19/18 153.5%	2019 99.6%	97.6%
PERU	551.7	12.3%	29.2	-6.7%	97.2%	92.7%
ARGENTINA	170.7	-14.7%	4.9		107.2%	107.2%
CHILLE	276.0	-4.6%	5.5	-82 9%	104.7%	96.7%
URUGUAY	ਰਤੋਂ 'ਚੇ	-15.5%	3.7		95.1%	102.0%
PARAGUAY	69.5	1.7%	6.9	9.9%	90.8%	90.8%

Figures in million euros

Market shares

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

3.4.2.3. INTERNATIONAL

Premiums for main lines of business

INTERNATIONAL comprises NORTH AMERICA and EURASIA, and represents 16 percent of the Group's total premiums.

Information by region

		PREMIUMS		ATTRIBUTABLE RESULT		COMBINED RATIO


NORTH AMERICA	2,331.7	-3.9%	78.6	124.8%	100.4%	102.1%
EURASIA	1,695.5	-4.0%	15.1	21.0%	106.1%	106.7%

Figures in million euros

Workforce and distribution network

* Does not include Corporate Areas

NORTH AMERICA

This regional area has its headquarters in Webster, MA (USA) and encompasses operations in NORTH AMERICA (United States and Puerto Rico). North America produces 9 percent of total Group premiums.

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

COPIA ELECTRÓNICA Código seguro de verificación (CSV): xIvfjCSHJswnKZUFv5fe Esta es una copia auténtica imprimible de un documento electrónico archivado por la CNMV, según el artículo 27.3 c) de octubre. Su autenticidad puede ser contrastada a través de la siguiente dirección: https://sede.cnmv.libreAcceso/CSV.aspx

Performance of key countries

	PREMIUMS		ATTRIBUTABLE RESULT		COMBINED RATIO


UNITED STATES	1,950.0	-4.3%	57.2		101.8%	104.1%
PUERTO RICO	381.7	-1.3%	21.5	-19.9%	90.5%	88.0%

Figures in million euros

The main regional market is the United States, with operations in 14 states across the nation and with a strong position on the Northeast coast, especially in Massachusetts, where MAPFRE is the leading provider of automobile, homeowners and commercial lines insurance.

Market shares

In the state of Massachusetts (USA) and Puerto Rico, the market shares were as follows:

* Does not include the Health line

EURASIA

This regional area includes Italy, Germany, Turkey, Malta, Indonesia and the Philippines, and it contributes 7 percent of total Group premium volume.

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

Performance of key countries

		PREMIUMS		ATTRIBUTABLE RESULT	COMBINED RATIO
	DECEMBER 2019	Var % 19/18	DECEMBER 2019 9	Var. Yo 19 18	DEGEMBER DECEMBER 2019	2011 3
TURKEY	448.3	-7.7%	7.2	-49.6%	113.5%	112.2%
ITALY	470.9	-0.7%	-1.5	60.9%	106.0%	108.9%
GERMANY	342.7	4.7%	5.8	115.3%	98.7%	98.6%
MALTA	357.3	-8.3%	4.9	12.7%	90.3%	92.9%
PHILIPPINES	27.4	0.8%	-0.8		112.4%	98.7%
INDONESIA	48.9	-21.0%	-0.3	87.7%	107.9%	102.9%

Figures in million euros

Market shares

In the EURASIA region, the market shares are as follows:

December 2018

Philippines 3.0% 2.0% Automobile TOTAL Non-Life

December 2018

September 2019

Source: MAPFRE Economic Research, using data from the supervisory body in each country

ASISTENCIA UNIT

This unit specializes in travel assistance, roadside assistance, and other Group specialty risks. It operates in 36 countries. MAPFRE ASISTENCIA is the fourth largest company in

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

the sector by revenue in the world, and has one of the most extensive assistance networks worldwide, contributing 3 percent of total Group premiums.

MAPFRE ASISTENCIA covers all assistance needs of travelers, their companions and their luggage, before, during and after each trip, anywhere in the world.

Key figures

	DECEMBER
	ABBES
Operational revenues	978.8	-0.4%
- Written and accepted premiums	861.0	-5.5%
- Oher income	117.8	64.3%
Attributable net result	-88.0

Figures in million euros

Workforce

REINSURANCE UNIT

MAPFRE RE is a global reinsurer and is the professional reinsurer of the MAPFRE Group. It offers reinsurance services and capacities, providing all kinds of solutions for reinsurance agreements and facultative reinsurance, in all Life and Non-Life lines. The Unit operates through a global network of 19 offices.

Premiums from this business unit represented 22 percent of the Group's total in the past financial year.

Key figures

	DECEMBER
Written and accepted premiums	5,580.5	12.5%
- Non-Life	4,986.8	14.4%
- Life	593.7	-1.1%
Attributable net result	57.5	-65.9%

Figures in million euros

The English version is a translation of the original in Spanish for information purposes only. In ase of discrepancy, the Spanish version shall prevall.

Código seguro de verificación (CSV): xIvfjCSHJswnKZUFv5fe COPIA ELECTRÓNICA Esta es una copia auténtica imprimible de un documento electrónico archivado por la CNMV, según el artículo 27.3 c) de octubre. Su autenticidad puede ser contrastada a través de la siguiente dirección: https://sede.cnmv.libreAcceso/CSV.aspx

BUSINESS MODEL, STRATEGY AND PERFORMANCE

	DECEMBER	Var %
	2019	19/18
Written and accepted premiums	5,580.5	12.5%
Reinsurance business	4,520.4	19.4%
Global Risks business	1,060.1	-9.7%
Net attributable result	57.5	-65.9%
Reinsurance business	76.7	-48.5%
Global Risks business	-19.2	-195.8%
Combined ratio	101.0%	5,4 p.p.
Reinsurance business	99.2%	3,2 p.p.
Global Risks business	123.5%	31,5 p.p
Expense ratio	30.5%	2,7 p.p
Reinsurance business	30.0%	2,8 p.p
Global Risks business	37.5%	4,8 p.p
Loss ratio	70.5%	2,7 p.p.
Reinsurance business	69.3%	0,4 p.p
Global Risks business	86.0%	26,7 p.p

Figures in million euros

Breakdown of premium distribution to December 2019 is as follows:

HEM ST ST FOR	જરી
By Type of business:
Pro-rata	65 5%
Non-proportional	11 296
Facultative	23 3%


By Region:
BERIA	1 35%
EURASIA	51.1%
LATAM	28.0%
NORTH AMERICA	19.6%

CITYE NA
By Ceding company:
MAPFRE	47.0%
Other cedents	53.0%

By Line:
General P&C	41.4%
Life and Accident	13.1%
Automobile	18.1%
Global Risks Business	19.0%
Transport	2.4%
Other Lines	4.8%

The English version is a translation of the original in Spanish for information purposes only. In espanish version shall prevail.

Market shares

Over the last few years, MAPFRE RE has established itself as one of the major reinsurers worldwide by premium volume.

The latest available global data for reinsurance groups based on gross premiums issued to third parties is shown here.

		NET PREMIUMS
No.	Group	2018
		(million USD)
1	Swiss Reinsurance Co.	34,042
2	Munich Reinsurance Co.	33,686
3	Hannover Rück SE	19,953
ব	Berkshire Hathaway Re	16,532
5	SCOR SE	15,803
6	China Reinsurance (Group) Corp	10,678
7	Reinsurance Group of America, Inc.	10,544
8	Lloyd's	ਰੇ 'ਚੇਵਰ
ਰੇ	Everest Re Group Ltd.	7,414
10	PartnerRe Ltd.	5,803
11	General Insurance Corporation of India	5,678
12	MS&AD Insurance Group Holdings, Inc.	5,080
13	Korean Reinsurance Co.	4,772
14	Transatiantic Holdings Inc.	3,969
15	Sompo Holdings, Inc.	3,900
16	MAPFRE RE	3,497
17	R+V Versicherung AG	3,170
18	Fairfax Financial Holdings Limited	2,790
ਹੈ ਕੇ	Tokio Marine & Nichido Fire Insurance Co. Ltd.	2,693
20	AXIS Capital Holdings Ltd.	2,334

Source: S&P. Global Reinsurance Highlights 2019

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4. CORPORATE GOVERNANCE

4.1. Corporate governance system

[GRI 102-14, 102-16, 102-18, 102-19, 102-20, 102-22, 102-23, 102-26, 102-35, 102-36, 102-37, FS1; L.11/2018]

MAPFRE adopts a three-pronged approach to its business management:

Corporate governance
Company structure
Executive organization

Corporate governance

The Annual General Meeting is the most senior governing body, while the Board of Directors is responsible for steering, administering and representing the company, holding full powers of representation, disposition and management. Its actions are binding on the company, with no further limitation than the express powers of the Annual General Meeting in accordance with the law and the corporate bylaws.

The Board is the company's main decision-making and supervisory body, as well as the supervisory body of all subsidiary companies, while the day-to-day management is carried out by the company's management and executive bodies and by the relevant management bodies of the aforementioned subsidiary companies.

The Board of Directors has a Steering Committee in place that acts on its behalf and with all of its powers, except those that cannot be ceded by law or, where applicable, if expressly prohibited by the bylaws or the regulations of the Board of Directors.

The Board of Directors also has three additional delegate committees:

-
Appointments and Remuneration Committee.
Risk Committee.

The functions and composition of the governing bodies are as follows:

Steering Committee

The Steering Committee's functions are the senior management and oversight of the day-to-day operations and strategies of the company and its subsidiaries. It comprises a maximum of ten members, all of whom are also members of the Board of Directors. The English version is a translation of the original in Spanish for information purposes only. In espanish version shall preval.

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Audit and Compliance Committee

The Audit Committee's functions include reporting to the Annual General Meeting on any issues that arise in relation to matters within its remit, overseeing the efficiency of internal control and the process for preparing and presenting financial information, submitting this to the Board of Directors, proposals for the appointment of the external auditor and building an appropriate relationship with this figure, and ensuring the independence and efficiency of the Internal Audit function. It is also the body responsible for supervising the proper application of good governance standards and external and internal regulations at the company and the Group. It comprises a minimum of three and a maximum of five members of the Board of Directors, all nonexecutive and most of them independent directors.

Appointments and Remuneration Committee

The Appointments and Remuneration Committee coordinates the implementation of the assignment and remuneration policy for directors and senior executives of the Group. It comprises a minimum of three and a maximum of five members of the Board of Directors, all non-executive and at least two of whom are independent directors.

Risk Committee

This committee provides support and advisory services to the Board of Directors in the definition and evaluation of the Group's risk management policies and in the determination of its risk appetite and risk strategy. It comprises a minimum of three and a maximum of five members of the Board of Directors, all non-executive and at least two of whom are independent directors.

The composition of the governing bodies resulting from the agreements that are expected to be adopted on March 13, 2020 is as follows:

The English version is a translation of the original in Spanish for information purposes only. In espanish version shall prevail.

CORPORATE GOVERNANCE

		Appointments Steering in the land	Audit and
Board of Directors	a marka manus	Committee Remumeration Committee	Compliance Committee	Risk Committee
Chairman Antonio Huertas Mejías (1)	Chairman
First Vice Chairman Ignacio Baeza Gómez (1)	First Vice Chairman
Second Vice Chairwoman Catalina Miñarro Brugarolas (3)	Second Vice Chairwoman	Chairwoman
Third Vice Chairman José Manuel Inchausti Pérez (1)
Members
José Antonio Colomer Guiu (3)	Member	Member	Member	Chairman
Ana Isabel Fernández Álvarez (3)			Chairwoman	Member
Maria Leticia de Freitas Costa (3)
Rosa María García García (3)		Member
Antonio Gómez Ciria (3)				Member
Luis Hernando de Larramendi Martínez (2)	Member	Member
Francisco José Marco Orenes (1)
Fernando Mata Verdejo (1)
Antonio Miguel-Romero de Olano (2)	Member		Member	Member
Pilar Perales Viscasillas (3)			Member
Alfonso Rebuelta Badías (2)		Member
Secretary
Angel L. Dávila Bermejo	Secretary	Secretary	Secretary
Jaime Álvarez de las Asturias Bohorques Rumeu				Secretary

(2) Nominee external board directors (3) Independent external board directors

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

José Manuel Martínez Martinez
Julio Castelo Matrán
Honorary Chairmen

xecutive Committe
Chairman
Antonio Huertas Mejías
First Vice Chairman
Ignacio Baeza Gómez
Vice Chairman
José Manuel Inchausti Pérez
Members
Aristóbulo Bausela Sánchez
Alfredo Castelo Marín
José Manuel Corral Vázquez
Francisco José Marco Orenes
Fernando Mata Verdejo
Eduardo Pérez de Lema
Fiena Sanz Isla
Jaime Tamayo Ibáñez
Member-Secretary
Angel L. Dávila Bermejo

Diversity and experience

[GRI 405-1; L.11/2018]

The Board of Directors of MAPFRE S.A. approved the Director Selection Policy on July 23, 2015. This policy establishes that during the director selection process, any kind of implicit risk that may involve discrimination and, in particular, biases that interfere with the selection of persons of other genders, must be avoided. Furthermore, the policy stipulates that by 2020 the number of female directors should represent at least 30 percent of the total of members of the Board of Directors.

As of the date of this Report, the Company had reached the objective set in terms of female representation on the Board, with female directors accounting for 33 percent of the total. Most participate in Board committees and/or have a significant role:

Catalina Miñarro Brugarolas: Second Vice Chairwoman of the Board of Directors and of the Steering Committee, Chairwoman of the Appointments and Remuneration Committee and independent coordinating director.
· Ana Isabel Fernández Álvarez: Chairwoman of the Audit and Compliance Committee and member of the Risk Committee.

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

· Pilar Perales Viscasillas: member of the Audit and Compliance Committee.

% of women over Board total	33.3%	28.6%	26.7%	23.5%

The composition of the Steering Committee and the various Special Committees of the Board of Directors by gender as on December 31, 2019 is presented below:

ITEM	Steering	Committee	Compliance Committee		Audit and Appointments and Remuneration Committee		ਕ ਤੋਂ ਡੀਡੀ Committee
	M	W	M	W	M	W	M	W
Number of Board Directors		1	2	2	3	-	2
% of total 83.3% 16.7% 50.0% 50.0% 75.0% 25.0% 75.0% 25.0%

M: Men; W: Women

Geographic and cultural diversity is also visible at Board level, with two nationalities represented: Spanish and Brazilian.

The selection of candidates in accordance with the provisions of the MAPFRE S.A. Board of Directors Regulations will include an evaluation of the competencies, knowledge and the experience necessary to hold a seat on the Board of Directors. The Board currently consists of 15 members, who as a whole possess knowledge, qualifications and experience relating to the following areas: insurance and financial markets, business strategy and business models, governance systems, financial and actuarial analysis and regulatory framework.

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

Other Corporate Governance indicators:

utem		2019 17, 2018 11	2017	2016
QUORUM FOR ANNUAL GENERAL MEETING	82.38%	82.07%	83.20%	82.76%
Board Directors	ਹ ਤ	14	15	17
Men -	10	10	11	ਹ ਤੇ
Women -	5	4	4	4
Executive board directors	5	5	5	5
Independent external board directors	7	6	6	7
Nominee external board directors	3	3	4	5
Board meetings	10	10	10	9
Steering Committee meetings	5	5	3	6
Audit and Compliance Committee meetings(1)	10	ਹੈ ਪ	11	6
Appointments and Remuneration Committee meetings(2)	б	5	7	6
Risk Committee meetings	6	б	5	6

Data in numbers

(1) Irrespective of the meetings mentioned, the Committee adopted agreements by written procedure, without a meeting, by means of a circular dated February 21, 2019.

(2) Irrespective of the meetings mentioned, the Committee adopted agreements by written procedure, without a meeting, by means of a circular dated February 4, 2019

The remuneration of directors is determined in accordance with the provisions of regulations applicable to corporations, the corporate bylaws and regulations of the company's Board of Directors, and the decisions adopted by the Annual General Meeting.

The total remuneration of the Board Directors of the company during fiscal year 2019 was as follows:

The English version is a translation of the original in Spanish for information purposes only. In Case of discrepancy, the Spanish version shall prevail.

Number of Directors	16
Accrued remuneration in the Company	7,906
Accrued remuneration in Group companies	2,346
TOTAL	10,252
Contributions to savings systems with vested rights and as an amount of accumulated funds	1,471

Figures in thousand euros

In order to comply with the legal requirements for remuneration of directors and to continue adhering to corporate governance best practices regarding remuneration, the Regulations of the Board of Directors govern the areas related to remuneration of the Board of Directors and the Appointments and Remuneration Committee.

The Ordinary Annual General Meeting of March 8, 2019 approved the Compensation Policy for Board Directors for the 2019-2021 period, effective as of January 1, 2019. This policy includes the various components of the remuneration package of the directors, which have been established on the basis of the following general principles and foundations:

Prioritization of the creation of value and profitability in the medium- and long-term over short-term results.
Reasonable proportion between the company's economic situation and the market standards of comparable companies.
Alignment with the commercial and risk management strategy, risk profile, objectives, and risk management practices.
Appropriate and efficient risk management within the established risk tolerance limits.
Attraction and retention of talent.
Appropriate remuneration for dedication, qualification and responsibility.
Appropriate proportion of fixed and variable components, avoiding excessive reliance on variable components.
Deferred payment of a significant portion of the variable remuneration.
Possibility of ex-post adjustments to the variable remuneration.

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

Avoidance of conflicts of interest.

The remuneration system differentiates between external directors and executive directors:

A) External Board Directors.

External directors receive a fixed amount as basic remuneration for their membership on the Board of Directors and, as applicable, on the Steering Committee and Special Committees, which may be higher for those who occupy positions on the Board or chair its Committees. In addition, members of the Steering Committee receive an allowance for attending its meetings. This remuneration shall be supplemented with other nonmonetary benefits (Life or illness insurance, discounts on products marketed by companies of the MAPFRE Group) established on a general basis for the company's personnel.

B) Executive Board Directors.

Executive directors do not receive the fixed amount established for external directors. The remuneration of Board Directors for carrying out their executive functions is determined according to those functions, levels of responsibility and professional profile, in accordance with the criteria governing the remuneration of MAPFRE Group senior executives and according to what appears in their respective contracts.

Executive directors are entitled to the allowances or social benefits established for Company personnel in general, as stipulated in the collective bargaining agreement signed by MAPFRE.

Only executive directors receive variable remuneration, of which there are two types:

(i) Short-term variable remuneration, linked to the consolidated net profit of the company. This remuneration is always paid in cash.

(ii) Medium- and long-term variable remuneration, which corresponds to a mediumterm incentive plan of an extraordinary and multiannual nature that cannot be consolidated. Its evaluation period on the degree of achievement of Plan objectives extends from January 1, 2019 until December 31, 2021, with deferred payment of incentives in the period 2023-2025 for some of its beneficiaries, which include executive directors in their capacity as senior managers. The payment of incentives is subject to the fulfillment of the Plan objectives, as well as remaining within the Group, under the terms set out in that Plan. The Plan consists of a cash incentive and a stock incentive in MAPFRE S.A., and is subject to reduction and clawback clauses.

In relation to the establishment of an appropriate balance between fixed and variable components of remuneration, the MAPFRE compensation policy for the rest of the workforce includes a variable structure that is calculated as a percentage of total The English version is a translation of the original in Spanish for information purposes only. In ease of discrepancy, the Spanish version shall prevail.

remuneration and is paid according to the degree to which employees have achieved their objectives. The weight of the variable remuneration is determined by the position held within the organization, increasing in line with the level of responsibility and the impact of employees' professional activities within the company.

Employee categories that may have a material impact on the company's risk profile have a variable short-term remuneration system linked to the achievement of objectives directly connected to strategic plans that is also subject to deferral rules. The Group's Institutional, Business and Organizational Principles determine its actions as a company and contribute to the sustainability of the business conducted in every country in which it operates. These principles are embedded in the company through its core values (solvency, integrity, vocation for service, innovation for leadership and committed team) and implemented through adherence to its international and local commitments as well as to the policies, standards and action protocols adopted by the organization. All of this enables the company to act in accordance with the due diligence principle, thereby preventing, detecting and eradicating irregular conduct, whatever its nature, which could have a negative impact on the company and on the environment in which it operates.

The company has a set of policies, regulations, procedures, protocols and other reference documents in place, both corporate and local in nature, which serve as a guide to determine the behavior that is expected of all those who work for or collaborate with MAPFRE.

Moreover, MAPFRE publishes the following corporate policies and standards on its website (www.mapfre.com), therefore making them available for all stakeholders:

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall preval.

Institutional, Business and Organizational Principles
Code of Ethics and Conduct
Treasury Stock Policy
Dividend Policy
Corporate Governance Policy
Corporate Tax Policy
Policy on the Management of Conflicts of Interest and Operations Linked to Significant
Shareholders and Senior Representative and Managerial Posts
Board Directors Selection Policy
Policy for Communication with Shareholders, Institutional Investors and Proxy Advisors
· Policy on Attendance Allowances
· Corporate Social Responsibility Policy
Diversity and Equal Opportunities Policy
· Promotion, Selection and Mobility Policy
· Policy on Health, Well-being and Prevention of Occupational Risks
Respect for People Policy
Security and Privacy Policy
Environmental Policy
Criminal Risk Prevention Model

Company structure

MAPFRE employs a simple, efficient and decentralized company structure that enables it to meet its business objectives in a suitable manner. This principle means that the appropriate management of the business in each country is compatible with the efficient management of the resources, capital requirements and distribution of dividends to shareholders. All of this is governed by a legal framework and genuinely ethical and socially committed conduct in the countries in which the company operates.

Executive organization

MAPFRE employs a management model for its executive organization that is underpinned by strict control and oversight at every level: local, regional and global. This facilitates broad delegation in the execution and fulfillment of the responsibilities assigned to teams and their supervisors. Most notably, it means that the most important decisions, at all levels, are analyzed in depth, before and after they are implemented, by all of the senior executive teams.

The English version is a translation of the original in Spanish for information purposes only. In esse of discrepancy, the Spanish version shall prevail.

Código seguro de verificación (CSV): xIvfjCSHJswnKZUFv5fe COPIA ELECTRÓNICA Esta es una copia auténtica imprimible de un documento electrónico archivado por la CNMV, según el artículo 27.3 c) de octubre. Su autenticidad puede ser contrastada a través de la siguiente dirección: https://sede.cnmv.libreAcceso/CSV.aspx

Sustainability by conviction 4.2.

[GRI 102-16, 102-18, 102-19, 102-20, 102-33, 102-34, 205-1, 205-2, 205-3, 405-1, 419-1 FS1, FS3, FS4, FS13, FS15; L.11/2018]

4.2.1. Sustainability vision

MAPFRE has been working with a strong commitment to people and the planet for more than 85 years. As an insurance company, it strives to take care of and protect people and assist in developing the business community of the countries in which it operates.

MAPFRE is a company that believes in diversity, in equal opportunities and in the talent of its professionals. It believes in people and invests in their professional development and maintains a safe and healthy, flexible work environment that promotes creativity and innovation.

MAPFRE's strong social commitment manifests itself through corporate volunteering and social action, which are promoted with the help of employees.

The company's principles, values and ethical conduct are shared with its providers, which drives opportunities for mutual growth.

MAPFRE is a company that takes care of the environment each and every day, and in how it does business, through public commitments and by focusing on climate change, on the circular economy and on the efficient management of its own facilities.

MAPFRE develops and promotes honest and equitable relations with its stakeholders, and seeks to create dialog that helps advance sustainable development. In addition, it identifies those topics that are relevant to the company and its stakeholders, and tackles global challenges by seeking out solutions from its business activity.

MAPFRE works for sustainable development, focusing on the present and looking forward to the future.

The company's sustainability model, published on the corporate website, is aligned with MAPFRE's vision, mission and values, with the Institutional and Business Principles and with its strategy; and its very design contemplates the basic pillars of sustainability – environmental, social and governance – along with profitable and sustainable growth.

4.2.2. Governance model for sustainability

The English version is a translation of the original in Spanish for information purposes only. In esse of discrepancy, the Spanish version shall prevail.

MAPFRE assumes the highest level of government approval and monitoring of the Sustainability Strategy. In 2019, the Board of Directors of MAPFRE S.A. approved five public commitments in the social and environmental field, which are included in the Group's Sustainability Plan 2019–2021.

The company has a Corporate Sustainability Committee in place, the members of which are appointed by the Executive Committee. This Committee, positioned at the highest executive level, is responsible for, among other matters, proposing the strategy to the Board of Directors as regards the Group's sustainability, promoting the scope of the plan and addressing those matters that are relevant to the Group in this area.

Furthermore, a Group Sustainability Office has been tasked with managing the operational and

5 sustainability commitments for 2021

1. A total of 45 percent of vacancies for managerial positions will be filled by women.
1. 3 percent of the workforce will be made up of people with a disability.
1. will be carbon neutral by 2021, and by 2030 for the rest of the Group.
1. No investment will be made in utility companies that generate 30 percent or more of their revenue from coal-produced energy.
No insure the construction of new coal-powered 5. electric plants or the operation of new coal mines will not be insured.

coordination. This office participates in different internal committees, such as the Risk Management of MAPFRE Asset Management,-and working groups such as that created on the circular economy and 2030 Agenda.

4.2.3. Sustainability strategy:

For MAPFRE, sustainability involves:

· Complying with the public commitments assumed in this area by the company. (See page 132, Social and Relational Capital).
Finding a balance between environmental, social and economic/governance (ESG) concerns in the medium- to long-term, and defining how these affect the company and the stakeholders with which the company maintains relationships. (See page 150, Materiality)
Managing the impact of the company on society and identifying opportunities for sustainable development to create shared value. (See page 62, Risks and Opportunities)
These objectives are made manifest through the Social Responsibility Policy and the Sustainability Plan 2019-2021.

The English version is a translation of the original in Spanish for information purposes only. In ease of discrepancy, the Spanish version shall prevall.

The Corporate Social Responsibility Policy, approved by the Board of Directors of MAPFRE S.A. on July 23, 2015, establishes the reference framework that allows all MAPFRE Group companies to develop and promote socially responsible behavior, irrespective of whether it is related to conventional or digital business.

This policy includes objectives and general principles of action related, among other things, to topics such as compliance, human rights, fiscal responsibility, good governance, transparency, the environment and promotion of the Corporate Social Responsibility (CSR) policy. It also defines specific principles for each of the following stakeholders: shareholders, employees, providers, distributors, clients and society in general.

The Policy can be accessed by employees on the Global Intranet, and on the corporate website by other stakeholders.

The effective application of this policy and the monitoring and control of its actions are followed up by the Group's Sustainability Committee.

The Sustainability Plan 2019-2021, adopted in July 2019 by the Board of Directors, focuses on those global challenges to which the Group can contribute through its activities. It evenly addresses its actions in the three dimensions of sustainability: environmental, social and governance.

The plan includes specific lines of work with actions for its development, the people responsible for carrying them out, the scope of action and indicators for its monitoring. Furthermore, the members of the Corporate Sustainability Committee act as sponsors

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

in different lines of work. The development and implementation of the plan is reported on twice a year to the Board of Directors.

Sustainability training:

[GRI FS4]

MAPFRE has two specific online courses:

"A walk through Corporate Social Responsibility" launched in 2018, through which 7,607 employees have been trained over the years.
employees have been trained over the years.

Also through the Global Intranet and the MAPFRE Blog, employees can access specific information, news and events related to sustainability.

4.3. Ethical behavior: main compliance and prevention measures

MAPFRE's anti-corruption framework

[GRI 102-33, 102-34; 205-1, 205-2, 205-3, 406-1, 407-1, 408-1, 409-1, 410-1, 411-1, 412-3, 415-1 L.11/2018]

As a signatory to the United Nations Global Compact, MAPFRE makes a firm commitment to avoid bribery, extortion and other forms of corruption, and to also develop specific policies and programs that specifically address the issue.

As stated in the MAPFRE Code of Ethics and Conduct, employees may not solicit or accept, or otherwise promise, offer or bestow, directly or indirectly, gifts, payments, invitations, commissions, compensation, favors or advantages of any type to obtain remuneration or to attempt to inappropriately influence their commercial or professional relations with public or private companies, public officials, employees, managers or administrators of public or private companies or bodies, organizations and political parties, politicians or candidates for public office.

MAPFRE also has a Criminal Risk Prevention model which is approved by the MAPFRE S.A. Board of Directors, and which is the basis of the System for the Prevention of the Risk of Criminal Behavior adopted. This outlines the design and structure of the supervisory model applied by the organization in order to prevent offenses being committed that could be attributed to the companies. It describes the risks of criminal behavior to which the companies are exposed and establishes a methodology for managing these risks and for evaluating the checks introduced to reduce the number of offenses. An extract from this Model can be found on the corporate website

The English version is a translation of the original in Spanish for information purposes only. In ase of discrepancy, the Spanish version shall prevail.

The Model applies to MAPFRE's legal representatives, company administrators, executives, as well as its employees and all other persons who are under the authority or control of the above-mentioned persons or who work in their area of management, supervision, vigilance or control. This includes all groups of individuals who act in the name of, on behalf of, or in some way or other in the interest of the Group.

The supervision and control of the model corresponds to the Group's Compliance Area, which also informs the Audit and Compliance Committee of the significant incidents or anomalies and the degree of compliance with the prevention measures in force at any given time. MAPFRE has a Criminal Risk Committee in place, which allows the Group to react and act diligently to a possible breach of the Model by following a procedure for dealing with possible suspicious activity.

There are specific reporting channels available to any person, including MAPFRE employees, who has indications or suspicions of a crime being committed that may be attributed to any of the Group's companies or a violation of the rules.

Maximum confidentiality is ensured regarding the identity of the person who makes the report, without prejudice to the legal obligations and protection of the rights concerning the companies and persons accused unjustly or in bad faith. There is also a ban on retaliations against anyone who has reported a violation.

Failure to comply with the principles and values referred to in the Model represents a breach of professional conduct and may be sanctioned accordingly, or denounced in the case of groups acting in the name of, on behalf of, or in any other way in the interests of MAPFRE. It may also result in the termination of their contractual relationship, without prejudice to any administrative or criminal penalties that may apply.

The Model is evaluated and updated periodically, taking into account both the changes related to the activities under control and the internal organizational modifications, as well as possible changes to the applicable regulations.

Instruments for prevention and whistleblower channels provided in the Model:

	Instruments for prevention	Prevention and whistleblower
		channels
	Policies, standards and procedures	- The Query and Whistleblower Channel concerning the Code of Ethics for
MAPFRE Group	· Institutional, Business and Organizational Principles of the · The Statutes of each of the companies in the Group · The regulations of the Board of Directors of MAPFRE S.A. · Code of Ethics and Conduct · Internal Rules of Conduct	employees and providers - The Financial and Accounting Whistleblower Channel for employees -A form for processing queries and requests from shareholders and private both and investors,

The English version is a translation of the original in information purposes only. In case of discrepancy, the Spanish version shall prevail.

	· Corporate policies and standards, among others: Corporate governance policy l Tax policy = Policy on the management of conflicts of interest and operations linked to significant shareholders and senior representative and senior managerial posts - Board Directors selection policy Policy for communication with shareholders, I institutional investors and proxy advisors - Corporate social responsibility policy Security and privacy policy I Code of Best Tax Practices I Sponsorship approval standard l - Rules for the prevention of money laundering - Procedure for the analysis of potential acquisitions, disposals and other restructuring and data security operations	Available the institutional. on corporate website (www.mapfre.com)
	Procurement regulations l
	Solvency Policy II
	Other instruments:
	Internal and external Audit Reports
	Continuous training
●	Corporate website (www.mapfre.com)

In 2019, a total of 30,634 employees received 38,638 hours of training in matters within the anti-corruption framework of MAPFRE.

Prevention of money laundering and financing terrorism

[GRI 102-33, 102-34; L.11/2018]

MAPFRE has a manual in place that is accessible to employees through the Intranet, which includes the internal prevention and communication policies and procedures and the control bodies established in the Group, as well as the catalogs of operations that may be related to money laundering or the financing of terrorism for insurance companies and for investment services companies.

The employees and agents of the companies in the MAPFRE Group who are subject to the regulation on the prevention of money laundering and financing terrorism have received specific training in this field (of differing degrees of depth according to the level of risk in the sphere of activities they carry out), with details of the way of proceeding in the case that any suspicious operation is detected. In 2019, 8,354 employees received 12,339 hours of training, the cumulative of the last three years being 34,518 employees and 53,832 hours.

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

Código seguro de verificación (CSV): xIvfjCSHJswnKZUFv5fe COPIA ELECTRÓNICA Esta es una copia auténtica imprimible de un documento electrónico archivado por la CNMV, según el artículo 27.3 c) de octubre. Su autenticidad puede ser contrastada a través de la siguiente dirección: https://sede.cnmv.libreAcceso/CSV.aspx

Fraud prevention

[GRI 102-33, 102-34; L.11/2018]

The Group has developed an anti-fraud technological platform for the detection, prevention and analysis of fraud in different business and support processes. In addition, it has an operational model in place to combat fraud that includes the definition of the necessary structures and most optimal functions, the design of specific processes and procedures for this matter, the definition of policies and regulations, as well as the design of the indicators map (both operational and risk). In 2019, 2,069 employees received 3,447 hours of training, the cumulative of the last three years being 9,706 employees and 12,180 hours.

Code of Ethics and Conduct

[GRI 102-16, 102-17, 102-33, 102-34, 205-1, 205-2, 205-3, 406-1, 407-1 407-2, 408-1, 409-1, 410-1, 412-3, 415-1; L.11/2018]

Updated in July 2019, the Code of Ethics and Conduct is inspired by the Institutional, Business and Organizational Principles of the Group and reflects the corporate values and basic principles that should guide the actions of its people, in everyday work and in their relationships with stakeholders. This code covers the following aspects:

Principles of ethical, transparent and socially responsible behavior Compliance with current legislation Respect for and protection of Human Rights Social responsibility Respect for the environment ● Confidentiality of information and protection of personal data Corporate brand, image and reputation 9 · Intellectual and industrial property
Code of conduct in relations with and among employees	Code of conduct in relations with third parties
Respect for people Equal opportunities and non- discrimination Work-life balance Commitment and cooperation in the workplace, efficiency and professional development Health, well-being and risk prevention Resources and equipment for pursuing professional activities	Relations with clients Information for shareholders Relations with providers and collaborating ● companies Relations with competitors Relations with governments and authorities Relations with partners Gifts and hospitality Conflicts of interest Anti-corruption, bribery Transparency of information · Prevention of money laundering and financing terrorism

The English version is a translation of the original in Spanish for information purposes only. In Case of discrepancy, the Spanish version shall prevail.

Compliance with the Code of Ethics and Conduct
Ethics Committee (composition and	Query and Whistleblower communication channels
competences)	(operating framework)

Ethics Committee

[GRI 102-17, 102-33, 102-34, 205-1, 205-2, 205-3, 406-1, 408-1, 409-1, 410-1, 412-3, 415-1; L.11/2018]

This body is responsible for ensuring the implementation of the MAPFRE Code of Ethics and Conduct and for supervising compliance with same. Its functions therefore include consultation, resolution, oversight and promotion of the Code.

This committee acknowledges and resolves the complaints and queries received, dealing with each case in the manner it deems most appropriate. It carries out each intervention with complete independence and respect for the individuals affected, while at all times guaranteeing confidentiality in the handling of the complaints and queries it processes. Their decisions are binding for the company and for the people subject to its scope of action.

Whistleblower channels

[GRI 102-17, 102-33, 102-34, 406-1, 407-1, 407-2; 409-1, L.11/2018]

MAPFRE has created two channels for use by employees:

The Financial and Accounting Whistleblower Channel enables Group employees to confidentially report any potentially significant financial and accounting irregularities they observe within their company to the Audit and Compliance Committee of MAPFRE S.A.
Ethics queries and complaints. The Code of Ethics establishes three communication channels: the Internet, accessible to employees and providers, which are available in Spanish, English, Portuguese and Turkish; postal mail and e-mail. Complaints and queries are received directly by the secretary of the Ethics Committee, guaranteeing they remain confidential.

During fiscal year 2019, the Ethics Committee registered a total of two complaints through the complaints channel: one for harassment, which was resolved through the internal procedure of prevention and treatment of harassment directed by the Corporate Area of People and Organization; and another for alleged breach of labor regulations, which was analyzed and dismissed by the Ethics Committee. No complaints were received from providers.

The English version is a translation of the original in Spanish for information purposes only. In esse of discrepancy, the Spanish version shall prevail.

Grievances and complaints

[GRI 102-33, 102-34, 417-2]

MAPFRE ensures that its clients in any country around the globe where it operates in direct insurance have an internal channel to defend their rights arising from the policies they take out. The company preserves clients' trust by making good on the commitment to give them the best possible attention and promoting the internal implementation of bodies to protect clients' rights.

See Annex, Note 1 for the main figures regarding grievances and complaints processed in the Group in 2019.

Compliance

[GRI 205-1, 205-2, 205-3; L.11/2018]

Among the essential values governing MAPFRE's operations, integrity - which is understood as the requirement of ethical, transparent and socially responsible values is a component of the Institutional, Business and Organizational Principles approved formally by the Board of Directors of MAPFRE S.A.

MAPFRE's commitment to integrity further involves strict compliance with laws and contracts and the obligations arising therefrom, as well as good commercial usages and practices.

To strengthen the effective observance of this commitment, in 2014 the Board of Directors of MAPFRE S.A. approved the Group Compliance Policy, summarizing the general principles, structure, authority, responsibilities and procedures for this function.

As a key function within its governing system, MAPFRE's Compliance function contributes to minimizing the legal and non-compliance risk of the Group, promoting awareness of conformity and compliance with internal requirements and ensuring that such considerations are perfectly internalized in its culture and activities.

Within the framework of the Compliance Policy, the Corporate Compliance Division and under its functional dependence, the compliance officers of the insurance and reinsurance companies of the supervision group, develop various preventive actions in relation to the compliance matters within their scope. These include the identification and evaluation of the risks of non-compliance and the effectiveness of controls, legal and regulatory changes, the fulfillment of periodic obligations with the supervisor, the annual review and self-assessment of internal policies, training, etc.

In 2019, in line with the corporate strategic objectives, compliance activities in these areas focused on the implementation of the global and uniform methodology for the The English version is a translation of the original in Spanish for information purposes only. In Case of discrepancy, the Spanish version shall prevail.

management of legal risk. This involves any regulatory, jurisprudential or administrative change that may adversely affect the company or the Group, the verification of the risk of non-compliance, and the review and self-evaluation of internal policies.

In 2019, the assessment of the degree of compliance with internal policies was carried out on the following:

Actuarial policy
Policy on the Constitution of Technical Provisions
Business Continuity policy
Corporate Social Responsibility Policy

The aforementioned evaluation was carried out at both corporate and individual level in insurance companies domiciled in Spain, Portugal, Malta, Germany, Italy, Turkey, Argentina, Chile, Colombia, Mexico, Panama, Peru, Puerto Rico and the United States, in MAPFRE RE and MAPFRE ASISTENCIA, resulting in a degree of compliance in excess of 75 percent.

Additionally, all insurance and reinsurance companies domiciled in Spain and MAPFRE S.A. have monitored the action plans defined for compliance with the MAPFRE Criminal Prevention Model.

All these activities were supplemented by the activities carried out in other areas or functions with responsibilities or competences related to specific compliance matters, such as data security and protection of personal data, prevention of money laundering, etc., that make up the MAPFRE Compliance function as a whole.

MAPFRE has a specific online compliance training in place that has been completed by 1,039 employees since its launch in 2015.

Internal control

[GRI L.11/2018]

In 2019, in coordination with the Corporate People and Organization Area, the contents of the online internal control course were updated on the eCampus corporate training platform, which provides employees of all MAPFRE companies with basic knowledge in terms of risk management and internal control. As on December 31, 2019, 3,887 employees have completed this program globally. Over the last three years, 20,165 employees have received 17,531 hours of training in internal control.

The topics and contents of this course facilitate the dissemination to all employees of MAPFRE's risk and control culture, an understanding of the main actions of the Internal Control System, and provide examples and common cases of control points in the

The English version is a translation of the original in Spanish for information purposes only. In espanish version shall prevail.

CNMV Oficina: ROD MADRID Registro de Entrada Nº: 2020018771 Fecha de registro: 2020-02-12 01:18:30

processes. There are also audiovisual materials aimed at raising awareness of the responsibilities of employees and senior management, in the operational, business and support areas, regarding the control and management of risks in day-to-day activities.

In terms of risk assessment, both the monitoring and quarterly reporting of indicators and compliance with the risk limits to the governing bodies and executive bodies of the companies and the Group have been promoted in the main Group companies.

With regard to the control activities already established, monitoring of the risk indicators and controls implemented in the Group's operations has been carried out, an action that is supported by the Riskm@p corporate platform and that has involved the participation of process managers from 25 countries and corporate areas (805 participants).

In terms of the monitoring of risks and controls, no major changes have been revealed with respect to the 2018 evaluation, so the corrective measures that were already underway to improve or establish controls and to define response procedures in case of materialization of the identified risks have been continued.

In terms of information and communication, significant progress has been made in the Group with the deployment to all entities of the Global Intranet, along with the various spaces that this tool enables for sharing and managing knowledge. In this regard, it should be noted that in 2019 MAPFRE launched its Knowledge Management model, a proposal that allows knowledge to be shared among all employees in different countries and subjects, which includes contents related to internal control and risk management.

As for the Internal Control System of financial information, the major companies of the Group have proceeded to draw up the Quarterly Financial Information Internal Control (SCIIF) Questionnaire, providing documentary evidence of activities and controls carried out for the main financial information preparation processes.

Regarding supervision activities, internal control supervisors from 41 companies across the Group have carried out the annual self-assessment on the presence and operation of the different actions that make up the internal control system, which together with the respective independent assessments carried out by Internal Audit allows us to find out the level of control in the organization and identify actions for improvement.

Internal audit

[GRI 102-33, 102-34; L.11/2018]

This independent and objective function helps the organization to comply with its objectives by providing a systematic and disciplined approach to evaluate and improve

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

the efficiency of risk management, internal control and corporate governance processes.

The Corporate Internal Audit Area has the following functions, among others:

= To supervise compliance with and the effectiveness of the Internal Control System and of other elements of the Governance System.
= To prepare an Annual Internal Audit Plan, adopting a risk-based approach when deciding on priorities.
= To comply with the Audit Plan, reporting the deficiencies that have been detected and monitoring them for each work area.
= To effectively coordinate the communication of information between the Board of Directors and the internal and external auditors through the Audit and Compliance Committee.
= To support the Organization in fulfilling its objectives by providing it with professionals in areas where independent opinions or support may be required for their development.
= To coordinate the work of External Auditors and analyze their conclusions before they are finalized.
= To gather the information necessary to support the MAPFRE S.A. Audit and Compliance Committee, and other audit committees that are established at subsidiaries due to a legal obligation or on a voluntary basis, and the office of the MAPFRE Chairman.
= may significantly impact strategic and operational objectives.
= To coordinate and review audit requests from clients and/or providers.
= To play an active role in the fight against fraud in relation to the prevention, detection and communication of fraud in the Audit works that it performs, in addition to attending to the requirements and requests of the different areas involved

Security

[GRI 102-33, 102-34, 410-1; L11/2018]

Among other issues, MAPFRE focuses its activities related to security on the protection of its employees and facilities, on protecting the information and privacy of its clients, employees and other interest groups and on the sustainability and resilience of its operations and the services that it offers.

• Employees are protected by providing a safe working environment, starting from the project phase, and maintaining protection measures at its facilities; providing self-protection plans in the workplace; designing and implementing specific travel The English version is a translation of the original in Spanish for information purposes only. In asse of discrepancy, the Spanish version shall prevail.

and relocation measures (particularly in unstable regions), including training measures; and direct and specialized assistance when risk or crisis situations appear.

· The commitment to data security related to clients, employees, providers and other stakeholders is implemented through aspects such as setting high standards of compliance with data privacy and protection regulations. To achieve this, various measures are applied to guarantee alignment with principles related to processing ("legality, loyalty and transparency," "limitation of purpose," "minimization of data," "accuracy," "integrity and confidentiality" and "proactive responsibility"), and so responding to the trust placed in MAPFRE by clients, employees, shareholders and other interest groups. In 2019, various projects aimed at automating and optimizing processes related to compliance with the General Data Protection Regulation (GDPR) were implemented. Numerous efforts have also been made to take advantage of possible existing synergies with the GDPR related to MAPFRE's adaption with local regulations that have been implemented; of note are the adaptation with the Brazilian Data Protection Act (LGPD), which will enter in force in August 2020, and the specific regulations regarding cyber security in Colombia.
In terms of availability, business continuity solutions are designed and implemented to prevent the interruption of the services provided to clients in the event of serious contingencies, thus contributing to the sustainability and resiliency of business operations and services provided. In this area, the granting by AENOR of ISO 22301 Certification to the Business Continuity Management Systems of MAPFRE INVERSIÓN and MAPFRE VIDA should be noted, combined with those previously obtained by MAPFRE GLOBAL RISKS, MAPFRE RE and the Benefits and Providers Areas, the scope of which was expanded this fiscal year with the Non-Life Technical Area and MULTIMAP, and the Operations area of MAPFRE ESPAÑA. The merit and coherence of business continuity plans has been evident on the occasion of crisis situations that have occurred in several countries throughout the year (United States, Brazil, Chile, Ecuador and Spain).

MAPFRE also has procedures, tools and highly specialized personnel in place to ensure that the new initiatives and corporate information systems have built-in security criteria from the outset, designed to minimize risks, protect data privacy and increase incident detection and response capabilities.

Protection of employees from moral and sexual harassment in the workplace

[GRI 102-33, 102-34, 406-1; L.11/2018]

The English version is a translation of the original in Spanish for information purposes only. In espanish version shall prevail.

MAPFRE rejects any display of workplace harassment, and any other behavior that is violent or offensive to the rights and dignity of people, whenever these situations contaminate the workplace, have negative effects on health, well-being, confidence, dignity and the performance of those who suffer from the same.

Respect for people is a responsibility of the entire organization and it extends both to relationships among employees, regardless of their position in the company, and to relationships among employees and clients, collaborators and other stakeholders. They must all contribute to ensuring a work environment in which people's dignity is respected.

MAPFRE has a Respect for People policy in place that was approved on July 23, 2015, for which the general principles of action in this area are:

1. To contribute to maintaining a workplace that is free of harassment and behavior that is violent or offensive to people's rights and dignity, and to guarantee that, if it occurs, there are appropriate procedures for dealing with the problem and correcting it.
1. To reject any manifestation of harassment, whether moral, sexual, psychological or of any other type, and also any behavior that is violent or offensive to people's rights and dignity, and consider respect for people and their dignity as one of the organization's basic principles of action.

MAPFRE has mechanisms in place in every country where it is present to help prevent harassment situations, and where they should they arise, it also has suitable procedures for dealing with and rectifying the problem.

During the year, 14 harassment claims were brought within the Group, and these were resolved using the in-house procedures put in place to this end. In four cases, the defendant was dismissed, in two cases, disciplinary measures other than dismissal were adopted and in eight cases the absence of harassment was verified. All the professionals providing instruction on this topic first received specific training themselves.

5. RISKS AND OPPORTUNITIES

[GRI 102-15, 102-29, 102-30, 102-31, 201-2, 203-2, 205-1, 205-2, 205-3, 305-5, 410-1, FS1, FS2, FS3; FS5, FS9; L.11/2018]

Risk management at MAPFRE 5.1.

Given the overall nature of the Group, proper risk management and organizational flexibility are vital. MAPFRE has internal control processes and an effective risk management system that complies with local regulations and promotes actions for risk

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

management, identification of emerging risks, training and dissemination of the risk culture in the organization. MAPFRE has a Risk Management System (RMS) based on the continuous and integrated management of each of the business processes and on the suitability of the level of risk to the strategic objectives, consolidating said management by area, business unit, activities, subsidiaries, geographical areas and corporate support areas.

In order to ensure efficient administration of risks, a set of risk management policies was developed that assign responsibilities, establish general guidelines, basic principles and action framework for each risk type, assuring coherent application within Group companies.

The Board of Directors of MAPFRE S.A. establishes the risk level that the Group is prepared to assume in order to reach its business objectives without any significant deviations, even in adverse situations. That level, which defines limits and sub-limits per risk type, constitutes the MAPFRE Group's risk appetite.

MAPFRE's structure is based on Units and Companies with a high degree of management autonomy. The Group's governing and management bodies approve the risk management actions to be taken by the units and companies and constantly supervise their exposure to risk using indicators and ratios.

All significant aspects related to risk management are handled by the Group Risk Office, which releases guidelines and reference criteria to be followed by the risk areas in the individual companies, with adaptations as required.

The governing bodies regularly receive information on a half-yearly basis relating to the quantification of the main risks to which the Group is exposed and the capital resources available to cover them, as well as information relating to compliance with the established Risk Appetite limits.

Assigned capital is established in general based on estimates in accordance with the budgets from the preceding year, and it is periodically reviewed throughout the year depending on the development of risks.

In addition to the quantitative treatment of risks, the main areas or departments of the Group entities assess the risks that could pose a threat to the fulfillment of their business plan, rating objectives or regulatory capital, or they could prevent the continued level of capitalization. The risks identified that may have a more relevant impact in the future are:

· Declining profitability of financial investments as a result of the medium-term maintenance of a low-interest-rate environment.

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

Possible impact on the results of unusual concentrations of natural disaster losses.
· Occurrence or increase of cyberattacks, affecting the protection of confidentiality, integrity, availability and storage of information.

For more information, see the Solvency and Financial Condition Report of MAPFRE S.A. and subsidiaries (SFCR) on its corporate website and in Note 7 "Risk Management" in the MAPFRE Annual Consolidated Accounts for 2019.

Additionally, and related to non-financial risks, in October 2019, news about a complaint of alleged irregular action by MAPFRE in Brazil in 2009/2010 in relation to its alliance with Banco do Brasil were published in some digital media. In spite of the months that have elapsed since the publication, the Company has not received any additional news on the matter, nor has it received notification or requirement from the competent administrative or judicial authorities in relation to the aforementioned alleged action. Nonetheless, an exhaustive internal investigation process has been initiated and is currently underway, and to date, no irregularity whatsoever has been unearthed.

5.2. opportunities within MAPFRE.

[GRI 102-15, 102-29, 102-30, 102-31, 205-1, 201-2, 205-2, 205-3, 410-1, FS1, FS2, FS3, FS5, FS9; L.11/2018]

An adequate monitoring of environmental, social and governance (ESG) factors allows for additional information on social movements and transformations, and the expectations of stakeholders and the market that affect the organization. This knowledge helps in the identification and assessment of potential risks (ESG) and business opportunities.

At MAPFRE, the integration of these ESG risks, together with the traditional risks of the insurance activity, is carried out naturally in the management and control processes that the Group has established.

MAPFRE uses different risk assessment and analysis systems, which are complementary and allow the integration of ESG risks:

• Own risk and solvency assessment (ORSA), integrated within the risk management system, which has mechanisms to identify, measure, monitor, manage and report any short- or long-term risks identified by the Group throughout the period reflected in the strategic plan, as well as to measure the sufficiency of capital resources based on the understanding of its actual solvency needs.

The English version is a translation of the original in information purposes only. In case of discrepancy, the Spanish version shall prevail.

Annually, the Group Risk Office coordinates the preparation of the ORSA report, which is submitted for approval by the Board of Directors.

· Materiality analysis which analyzes the ESG aspects based on their relevance to participating stakeholders (employees, providers, clients and experts) and the impact these issues have on MAPFRE. This analysis enables the identification of potential risks to the company, and establishes appropriate prevention and mitigation measures. (See page 150.)
Analysis of reputational risk, which analyzes key ESG topics, especially those related to compliance with international standards such as the 10 principles of the United Nations Global Compact, using the RepRisk methodology, among others.

Moreover, as of 2018, MAPFRE has participated in the United Nations Environment Program Finance Initiative (UNEP FI) pilot project, in order to assess the impact of climate change and to incorporate the recommendations of the Task Force on Climaterelated Financial Disclosures (TFCD) in the insurance industry. As a global insurance company, MAPFRE has jointly pledged to contribute to defining, analyzing and commencing to adopt a standard of technical and financial action for the entire sector that will help the insurance industry manage the risks and opportunities of transitioning to a low-carbon economy, and reduce the impact of climate change for the whole of society. (See page 123 Natural Dimension.)

Through these systems, all the significant and potential sources of risk the Group faces are contemplated, and the taking of initiatives for their management and mitigation is facilitated.

In addition to the risks identified in the previous section (decrease in the profitability of investments due to low interest rates, unusual concentrations of natural disasters and increased incidents of cyberattacks), there are other factors linked to sustainability which, due to their nature and special protection, can become risks for the company. These type of ESG risks increasingly interrelate with the risks inherent to the organization's activity.

The analysis of these ESG factors, and how they may affect the business in the short-, medium- and long-term, will determine their relationship and inclusion in the typology of risks established by the company and in the adoption of prevention and mitigation measures.

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

RISKS AND OPPORTUNITIES

MAPFRE has focused on the following	How might they affect the business?	mitigation and Monitoring techniques
and Adaptation to mitigation of climate change; Carbon footprint, Natural resources; Waste management.	· The climate variable can affect insurance and reinsurance underwriting. Related to underwriting risk · Greater regulation on both a local and regional level. Related to risk of non-compliance • Increased social protection. Related to reputational risk	Natural 128 page See - Climate Change Dimension: Strategy Framework for 66. - See ESG risks into integrating underwriting and investment - See p. 150 Materiality
Demographic longevity, changes: and mortality demographic challenges	• That affect the Life/health business. Related to underwriting risk • May affect the internal management of companies: delayed retirement age, aging of the workforce, etc. Related to operational risk	- See p. 48: Sustainability by conviction - See Solvency and Financial Condition Report 2018: web See p. Human Dimension See Human Resources Report 2019
Equality, diversity and non-discrimination in the company	· Greater regulation on both a local and regional level. Related to risk of non-compliance · Affects the public commitments made by the company. Related to corporate governance risks and reputational risk · Regulation proliferation. Related to legal risk or risk of non-compliance	See p. 91 Human Dimension - See Human Resources Report 2019 - See p. 150 Materiality
ethics: Business and corruption internal fraud	· Regulation proliferation. Related to legal risk, risk of non-compliance, strategic risk and corporate governance · Related to the company's accident prevention systems and to employees. May lead to economic loss for the company, sanctions and loss of reputation	See p. 51: framework for anti- corruption See the Solvency and Financial Condition Report on the corporate website and Note 7 "Risk Management" in the MAPFRE Consolidated Annual Accounts 2019. - See p. 150 Materiality

5.2.1. Framework for integrating environmental, social and governance (ESG) aspects into the MAPFRE underwriting processes

MAPFRE has an underwriting policy in place that was approved by the Board of Directors of MAPFRE S.A., and which is applicable to all insurance and reinsurance companies. It also has a Global Business Committee and a Group Underwriting Policy Committee that, among other functions, are responsible for the correct application of the underwriting policy and that analyzes and proposes operational exclusion rules on ESG topics.

Since 2019, MAPFRE has made public a commitment in terms of coal (2019-2021), and does not insure the construction of new coal-fired power generation plants, or the The English version is a translation of the original in Spanish for information purposes only. In Case of discrepancy, the Spanish version shall prevail.

રહ

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operation of new coal mines. Case-by-case exceptions may be made and assessed taking into account the company's internal systems of environmental, social and governance analysis. In addition, criteria such as the state of development of the country in line with the UN classification, the country's dependence on coal or the consideration of renewable or low-coal content alternatives will be included in the evaluation.

Regarding Reinsurance underwriting, these commitments have been transferred in full to the Underwriting Policy for specific acceptances of these risks, applying to the entire Group.

During the 2019 fiscal year, MAPFRE did not approve any exceptions to the commitment made in terms of coal.

In addition, for the underwriting of global risks, MAPFRE has developed an internal ESG evaluation model that considers, in the decision-making process, a company's ESG risk exposure with the ESG risk exposure of the countries and sectors in which the company has been exposed and the reputational risk analysis. The model assigns a rating to the operation, from AAA (best possible evaluation) to a D (worst possible evaluation). According to this evaluation, different levels of authorization are established: for a CC, C and D rating, the authorization of the Large Risk Unit Steering Committee is required and, where appropriate, the additional authorization of the CEO is also required. In this case, if the operation is authorized, with the corresponding mitigation measures, the Group Sustainability Office is informed.

5.2.1.1 Natural Disasters

Action in relation to natural disasters requires appropriate prediction of these events and the right assessment of possible losses are essential elements of an insurer's management system. These two lines of action determine the economic impact on the company and the response it will be able to offer its clients and this management is inherent in its operations.

The Reinsurance Unit is entrusted with various tasks related to exposure control and catastrophic risk management of the Group, as well as providing adequate reinsurance coverage to each company individually and the Group as a whole.

The MAPFRE catastrophic risk management framework includes several functions:

· Cumulation control: addressing all catastrophic exposures that the companies face and which may be affected by a natural disaster.
· Modeling of catastrophic risks: knowing all the information about exposures, estimating probabilistic loss scenarios to calculate the possible financial impact of natural disasters.

The English version is a translation of the original in Spanish for information purposes only. In esse of discrepancy, the Spanish version shall prevail.

· Design of appropriate reinsurance safeguards to cover risks that are to be ceded and ensure that catastrophic events do not compromise the Group's solvency or liquidity.
· Monitoring and managing the credit risk exposed to through reinsurance placements, as well as the liquidity risk that it could be exposed to.
Contingency plans: in the event of a catastrophic event materializing, the ability . to continue serving clients becomes critical. This is why business continuity plans are developed, implemented, tested and updated to ensure, in addition to the personal safety of the teams and collaborators, the ability to recover effectively and efficiently from these serious contingencies, thus fulfilling its obligations to clients and other interest stakeholders.

To carry out these actions, MAPFRE has specific capabilities that facilitate a consistent and adequate response to requirements at any time and place. The activation of the plans makes it possible for each company to resume its operations in a period of time that does not compromise its continuity and that allows services required by its clients to be provided, making these operations resilient.

5.2.1.2. The management of meteorological events in MAPFRE ESPAÑA.

MAPFRE ESPAÑA has an action protocol in place for crisis management in the event of special/exceptional situations that allows it to address, in a systematic and homogeneous manner, an unexpected situation that may pose a risk to people, business or commitments to its clients.

This protocol establishes the procedures for action, responsibilities and actions to be developed by those who have to intervene in crisis management. This is all part of the crisis management mechanisms defined by the Group. In addition, specific measures are included as well as the potential activation of the corresponding Business Continuity Plan.

The protocol is part of the business continuity management system, certified by AENOR and ENAC according to ISO 22301.

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall preval.

How does the protocol work in the event of a weather event? Once the probability of a significant event has been identified, a first alert is issued to all the groups involved in the management of the claims (telephone centers, processing centers and groups of providers and appraisers) and different actions are carried out to respond to clients, in particular:

· Daily monitoring of reported claims.
· Constant review of the capacity of the processing equipment and, in case of saturation, part of its workload should be transferred to other processing centers.
· Constant review of the ability of appraisers and providers, and if necessary, reinforcement thereof by transferring professionals from other areas.
Centralized decision-making and transfer of said information to all groups for homogeneous and unitary application.
· Assessment of mass sending of informative messages to the insureds depending on the seriousness of the situation.
· Communications to the sales network, providing information about the magnitude of the event and reminding them of how to communicate their own claims and underwriting syndicate catastrophe coverage claims, and the scope of the ordinary and extraordinary coverage that may be applicable.
· Press releases, informing on the impact and the measures taken by the company to serve its clients.

A daily crisis committee, made up of those responsible for the Operations, Providers and Benefits teams continuously analyzes the latest information, while coordinating appropriate courses of action and making the most appropriate decisions, always performed with the objective of maintaining the level of customer service.

In the 2019 fiscal year, the impact of the adverse weather in Spain was particularly relevant, especially in the last four months of the year, during which there was a succession of different events with an unprecedented intensity, frequency successiveness. and More specifically, there were up to four episodes of Isolated Depression at High Levels (DANA), six storms, four Atypical Cyclonic Storms (TCA) and

The English version is a translation of the original in Spanish for information purposes only. In asse of discrepancy, the Spanish version shall prevail.

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several floods and tornadoes occurred.

5.2.1.3 Underwriting business opportunity:

Work continued on the design of sustainable solutions, also for emerging risks, while analyzing market options and moving toward new business models and solutions that arise from the digital and technological changes being experienced, with the ultimate goal of offering the best solutions and services to current and future clients.

See Annex, Note 7 - Environmental Products and Services

icinula ini internating circu viiiirentai, sona anu governance (1-30) dspects into MAPFRE's investment processes

Socially responsible investment is constantly evolving, following the pace of the great global trends in relation to the risks and opportunities of ESG factors.

In 2017, MAPFRE adhered to the United Nations-supported Principles for Responsible Investment (PRI) and established the framework for action of the Group on Socially Responsible Investment (SRI), which focuses on those key aspects that have to accompany the organization in the scope, implementation, process of integration of the ESG aspects and are complemented by those determined in each case.

The principles of SRI of the United Nations coexist with the obligation assumed by the company as the custodian of clients' savings and investments and the strength of their own balance sheet. Therefore, prudent investment criteria are adhered to, seeking longterm value creation through the application of ESG factors alongside traditional information.

MAPFRE has its own ESG analysis framework that is reviewed periodically to incorporate best practices in this area. It also has a qualified SRI working group and, in addition, it has an Investment Risk Committee, which periodically analyzes the composition of the portfolios, its ESG evaluation and analyzes any controversies that may arise.

Within the scope of the SRI, the investment team has the following functions:

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= Regularly issues ESG reports, which are analyzed by the SRI team prior to their presentation by the Risk Committee.
Constant monitoring in order to alert on any controversies or risks in the ESG field that may arise during the normal course of operations, and to inform the Risk Committee.
= The investment team is responsible for applying any grounds for exclusion approved by MAPFRE.

In the case of management delegation, the company that is managing the portfolios shall be informed so that the exclusions are applied, with the time limit of their implementation being determined by common agreement.

MAPFRE's Corporate Investment Area is responsible for ensuring that the organization complies with the established responsible investment principles and submits an annual report to the Sustainability Committee, which is the most senior part of the aforementioned area.

With regard to SRI strategies, MAPFRE supports the implementation of the integration strategies as a priority, although it does not rule out the use of other strategies such as exclusion, engagement, best-in-class or proxy-voting strategies.

In 2019, MAPFRE agreed to not invest in electricity companies that generate over 30 percent of their revenue from coal-produced energy. It incorporates this exclusion rule into its SRI framework, which reinforces the Group's climate strategy.

In line with its commitment to the UN 2030 Agenda, a portfolio impact measurement methodology for the Sustainable Development Goals has been incorporated. Created in collaboration with the University of Siena, this methodology has already been implemented in the portfolio from a new Inclusión Responsable Fund and will be extended to all portfolios.

Furthermore, in 2019, MAPFRE joined Spainsif, (a prestigious forum in the area of sustainable and responsible investment in Spain) also becoming a member of its board of directors. MAPFRE Asset Management also holds ISO 14001 and 50001 certification.

5.2.2.1. ESG Opportunities: Socially Responsible Mutual Funds (SRI)

MAPFRE Asst Management, MAPFRE's asset manager, has three specific funds:

• Inclusión Responsable, launched in December 2019. This is an equity fund that invests in companies that are particularly committed to the inclusion of people with disabilities. The fund, which has been included in the United Nations Global Compact 2019 report as an example of best practice, combines the search for financial profitability with the promotion of an improved society. In fact, the management

The English version is a translation of the original in Spanish for information purposes only. In esson shall prevail.

team has carried out a historical simulation that shows that, over the last five years, the portfolio of companies selected for their promotion of inclusion was almost four times more profitable than the market as a whole. The asset management team, in collaboration with La Financière Responsable (LFR), a French asset manager in which MAPFRE owns 25 percent of the capital, applies a methodology based on seven themes with 40 variables.

· Capital Responsable, launched in 2018. This fund seeks to preserve capital without giving up long-term growth, and thus, it has a balanced portfolio of fixed income assets and European shares (about 70 percent bonds and 25 percent shares). The objective is to favor companies and entities that have a strategy committed to monitoring the ESG criteria, under the assumption that these entities provide a more appropriate risk-return profile. The equity fund closed 2019 with assets amounting to just over 35 million euros and has provided an institutional class return of 6.08 percent and a retail class yield of 5.58 percent in the last 12 months. MAPFRE also has a pension plan that replicates this fund and has generated strong interest, given that its equity already exceeds 100 million euros — the same as all three funds together. Therefore, the funds and the pension scheme total over 200 million euros.
MAPFRE Good Governance, launched in 2017. This is a global variable income fund whose portfolio includes companies with good corporate governance in which the assets are temporarily undervalued by the market. In fact, two studies by the University of Siena and the Cranfield School of Management confirm that investment in socially responsible and well-managed companies is more profitable in the long-term.

A total of 63 million euros has already been taken in to date, with a 16.77 percent return on institutional investment in the last twelve months and 7.6 percent on the retail side, (which was rolled out at the end of January 2019 and so missed out on the market appreciation of that month).

MAPFRE has placed special importance on the communication and information of SRI Funds to specialist clients (current and potential), and to society in general. This has been implemented in a different way, in accordance with the values that represent these funds for the company, responsible investment and its contribution to sustainable development.

During the presentation of the Inclusión Responsable Fund, MAPFRE AM focused on the product's financial profitability and social profitability, presenting disability as a positive value for companies. For its launch in Spain, a round table was organized with investors and specialists, including the Chair of Family and Disability at Comillas Pontifical University and with Corporate Universitas at Salamanca Pontifical University. The

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opening of the meeting was carried out by a group of people with disabilities in the San Juan de Dios center, with a performance prepared especially for this meeting.

In France, the Inclusión Responsable Fund was presented alongside MAPFRE AM's partner in France, LFR.

MAPFRE AM promotes the SRI by generating specific information through interviews, participating in workshops and events, reference articles in specialized media and valueadded videos on the MAPFRE corporate website.

MAPFRE maintains a permanent line of dialog with ESG investors and managers and relevant journalists in the asset management sector, while also holding meetings with different media to promote SRI.

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

CNMV Oficina: ROD MADRID Registro de Entrada Nº: 2020018771 Fecha de registro: 2020-02-12 01:18:30

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6. CREATION OF SHARED VALUE: WE ARE SUSTAINABLE

Value creation for an organization is achievable when the company defines its different types of resources and identifies the main areas to work on and the stakeholders impacted or potentially impacted.

Value creation is not static, and projects are therefore undertaken within a much longer time frame, in line with the Strategic Plan. This chapter describes the main milestones reached in 2019.

The information in this chapter is supplemented by the Annual Accounts and Consolidated Management Report and the MAPFRE People and Organization 2019 report, which are available on the corporate website.

FINANCIAL DIMENSION 6.1.

[GRI 102-2, 102-6, 102-7, 201-1; L.11/2018]

WE ARE SOLVENCY

Solvency is one of the fundamental values that helps MAPFRE execute its mission and achieve the Group's vision. The business model is built on the basis of financial strength and a strategy of sustainable results over time, and this guarantees that we can meet all obligations we have with our stakeholders.

What are we working on to create value?

Shareholders' equity .
Investments
Financing operations .
The MAPFRE share

Link to MAPFRE's priority SDGs:

1. Decent Work and Economic Growth
1. Industry, Innovation and Infrastructure
1. Partnerships to achieve the Goal

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

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The pillars on which the Group is supported and which contribute to its solvency and the generation of value for stakeholders are:

SHAREHOLDERS' EQUITY

INVESTMENTS

	SHAREHOLDERS EQUITY
EQUITY	10,106
Equity attributable to the Controlling company	8,854

Figures in million euros

Consolidated equity amounted to 10.1 billion euros as on December 31, 2019, compared to 9.2 billion euros as on December 31, 2018. Of this amount, 1.25 billion euros correspond to non-controlling interests' shares in subsidiaries, primarily financial entities in Spain and Brazil that MAPFRE has bancassurance agreements with. Consolidated equity attributable to the controlling Company per share was 2.87 euros as on December 31, 2019 (2.60 euros as on December 31, 2018).

INVESTMENT PORTFOLIO	53,523
Fixed income	39,444

Figures in million euros

MAPFRE manages its investments giving due consideration to the risks undertaken and taking assumable risks. The investment policy of the Group aims to ensure the company is in a position to satisfy the commitments of its insureds and pursue the preservation of asset value, which requires a prudent investment selection and risk assumption policy.

MAPFRE seeks to develop a solvent and profitable business, but never at the expense of sustainable engagement with the environment it operates in.

	TESTIMENT POLICY BASIC PRINCIPLES

	√ Principle of covering the commitments insured
>	Principle of prudence
	Principle of operational security
>	Principle of liquidity
>	Principle of profitability
>	Principle of responsibility
	✓ Principle of sustainable investment
	Principle of homogeneity
	/ Princinle of efficient management

The English version is a translation of the original in Spanish for information purposes only. In Case of discrepancy, the Spanish version shall prevail.

V Relationships with intermediaries and external collaborators in general

In 2017, MAPFRE signed up to the Principles for Responsible Investment of the United Nations (see page 70, Integration Framework for ESG aspects in MAPFRE investment processes).

Details of the investment portfolio by asset type are given below.

Breakdown by asset type

*"Real Estate" includes both investment property and real estate for own use

The breakdown of the Fixed Income portfolio by geographic area and by asset type is as follows:

	Government	Forporate Dent	rotes
Spain	18,181.8	2,378.6	20,560.4
Rest of Europe	5,015.8	3,802.6	8,818.4
United States	1,588.7	2,133.3	3,721.9
Brazil	3,020.6	2.0	3,022.5
Latin America - Other	1,828.3	778.1	2,606.3
Other countries	453.7	260.4	714.1
TOTAL	30.088.8	9,354.9	39,443.7

Figures in million euros

The English version is a translation of the original in Spanish for information purposes only. In asse of discrepancy, the Spanish version shall prevail.

FINANCING OPERATIONS

CAPITAL STRUCTURE	13,080
Debt	2,974
Equity	10,106

Figures in million euros

The chart below shows the composition of the capital structure at the close of the 2019 fiscal year-end:

Capital structure

Capital structure reached 13.1 billion euros, of which 77 percent corresponds to equity.

Leverage ratios

The Group has a leverage ratio of 22.7 percent, up 0.2 percentage points compared to the 2019 fiscal year-end.

The English version is a translation of the original in information purposes only. In case of discrepancy, the Spanish version shall prevail.

	DECEMBER 2019
Total equity	10,106.9
Total debt	2,973.7
Earnings before tax	1,279.2
Financial expenses	78.5
Earnings before tax and financial expenses	1,357.7
Leverage	22.7%
Equity / Debt	3.4
Earnings before tax & financial expenses / financial expenses (x)	17.3

The following table breaks down the development in Group leverage ratios:

Figures in million euros

MAPFRE has converted its 1 billion euro syndicated line of credit (which was to expire in December 2021) into a sustainable loan, thereby becoming the first insurance company in the world to execute a transaction of this nature for general corporate needs, while strengthening its commitment to sustainability and corporate social responsibility.

Both MAPFRE's credit rating and the development of sustainability parameters for the company are taken into consideration when setting the interest rate.

MAPFRE has thus reaffirmed its dedication to sustainability in all areas of the organization and strengthens its position as a company that is committed to social responsibility, the environment and society in general, as well as to reducing its financing expenses and extending financing maturity, while ensuring more advantageous conditions and taking into consideration the performance of the financial markets.

THE MAPFRE SHARE

Performance / Mapfre Share
RESULT FOR THE PERIOD ATTRIBUTABLE TO THE CONTROLLING COMPANY	609
Earnings per share (euros)	0.20

Figures in million euros except for Earnings per share

The accompanying charts show information regarding the MAPFRE share and its performance.

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall preval.

	12/31/2019
Total outstanding shares Market capitalization (million euros)	3,079,553,273
Share price (euros)	7,267.75 2.360
Book value per share (euros)	2.875
Price / Book value	82.1%
Dividend per share (last 12 months)	0.145
Nominal share price (euros)	0.1

Share price movement: January 1, 2019 – December 31, 2019

Source: Bloomberg and own calculations Spanish banks: the six Spanish banks with the largest market capitalization

The English version is a translation of the original in Spanish for information purposes only. In asse of discrepancy, the Spanish version shall prevail.

NMV

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Target price (average provided by analysts) and quote: January 1, 2017 - December 31, 2019:

Source: Bloomberg

Dividend and payout

The dividend policy of the Group states that remuneration of shareholders must be tied to MAPFRE's profits, solvency, liquidity and investment plans and in line with the interests of all shareholders.

The commitment of the Group to its shareholders is clear and consistent, as is demonstrated through the profitability that it offers them.

Dividends paid against earnings (in million euros)

Figures in million euros

The final dividend for fiscal year 2019 to be proposed at the Annual General Meeting is a dividend of 0.085 euros per share before tax. Consequently, the total dividend against the 2019 result for the period amounts to 0.145 euros per share before tax, representing a payout ratio of 73.3 percent.

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Partnerships to achieve the Goal

6.2. PRODUCTIVE DIMENSION

We organize our activity thinking about the client, adapting our commercial offering and value proposition, our operations, structure and technology to offer then better quality and an enhanced experience. What are we working on to create value? Focus on the client Digital business . Providers Quality Link to MAPFRE's priority SDGs: 8. Decent Work and Economic Growth 13. Clilmate Action 9. Industry, Innovation and Infrastructure 1. No Poverty

FOCUS ON THE CLIENT

Sustainable Cities and Communities

In 2019, extensive work was completed on Client Orientation. To date, in the corporate strategic initiative "Client Relationship Model," the activity had focused on establishing a homogeneous framework that was aligned with a high technological orientation and capacity development.

The corporate strategic initiative has been redefined under the name of "Client Focus." lts main objective is to ensure that the MAPFRE Client understands that they enjoy a differentiated experience as a result of their link to the company, and that distinctive proposals are adapted to their profile and requirements. In this way:

· Improving the client experience becomes the cornerstone of everything.
· Generating value propositions with an impact on business is a priority.
· Training in data management, customer intelligence and CRM (client relationship management) continues to play a role as long as it supports business performance.

Measurement has also been reoriented, leaving only the degree of client orientation as an indicator of the progress in capabilities. The key is the business impact metrics, which enable us to assess the improvements obtained in terms of Client growth, retention, average client policies and NPS®.

The English version is a translation of the original in Spanish for information purposes only. In ease of discrepancy, the Spanish version shall prevail.

Using this frame of reference and always taking the business objectives and maturity of local capacity into account, 101 projects have been developed with a budget of 11.5 million euros in the main countries in the group.

		GERMANY	0 Brazil	lel SPAIN	ITALY	19 H MEXICO	( PERU	PUERTO RICO	TURKEY	USA
	CROSS SELLING	V			>					A
Sh	ACQUISITION				1	>
	RETENTION LOYALTY		1	>		V	V	>	>
B	Customer EXPERIENCE	>	V	>			>		1
	VALUE PROPOSAL AND FAMILIES			>			>
DEVELOPMENT OF CAPABILITIES	DATA IMPROVEMENT	V	V			>		>
	SEGMENTATION AND INDICATORS		1	>		>	>			1
	CRM	>	>				>		1

The purpose of the model is to improve relations with the approximately 26 million clients that MAPFRE has in insurance unit operations, highlighting the more than 7.4 million clients in IBERIA and more than 8.6 million in Brazil at year-end.

Multichannel distribution and customer service

MAPFRE is committed to multichannel distribution, and this can clearly be seen in the current highly balanced distribution mix among the five types of "distributor client" that are managed to ensure proper management: direct, exclusive agency networks, nonexclusive agency networks, bancassurance and distribution agreements. All of them

The English version is a translation of the original in Spanish for information purposes only. In espanish version shall prevail.

move in the range of relative weights between 20 and 30 percent, on a global basis. This mix differs substantially in each country, in that it adapts to the most advantageous conditions to develop business activity in each market.

In 2019, plans to improve distribution models were implemented across practically all operations, with a high reuse of best practices and successful experiences. These have been collected in recent years and systematized in different management models: exclusive networks, bancassurance, key accounts, direct/delegate offices and automobile manufacturers, among others.

In those countries where the development of exclusive agency networks is possible, with Spain being the most relevant, this distribution channel is reinforced and supported as a priority. These networks have developed greatly in Turkey, LATAM North and LATAM South, where significant growth in business volume and active agents has been recorded in most countries. In those countries where exclusive distribution is not as common, progress has been made in boosting the degree of connection with non-exclusive agency networks. Brazil and the United States are the most significant examples, but not the only ones. The widespread use of agency networks allows MAPFRE to be very close to its clients and offer the best advice and service at all times. It is worth noting the progress that has been made in providing these exclusive agency networks with digital tools in order to facilitate the transition to hybrid distribution models (digital and faceto-face), where the agent can take full advantage of advances in new technologies.

As for business mediated by brokers, 2019 was an important year for the development of this distribution channel, with significant improvements in the value propositions for all segments. Progress was made in the systematization of the management model of local brokers, and business volume was consolidated. The company also worked more closely with the big global brokers.

MAPFRE has agreements in place with banks and financial institutions, in particular existing agreements with Bankia, Bankinter and CCM in Spain, Banco Do Brasil in Brazil, Bank of Valletta in Malta, and BHD in the Dominican Republic. In 2019, MAPFRE reached significant agreements with important institutions: Banco Santander for the distribution of automobile and company insurance in Spain; Actinver focused on the sale of Life products in Mexico and Sicredi, in Brazil.

An increasingly important "distributor client" and one with high development potential involves distribution agreements with non-financial companies. This is the case for automobile manufacturers, retailers, dealers, utility providers, etc. MAPFRE manages numerous agreements through which it significantly expands its distribution capacity, offering distinctive value propositions and high quality to clients.

The English version is a translation of the original in Spanish for information purposes only. In espanish version shall prevail.

CREATION OF SHARED VALUE: WE ARE SUSTAINABLE

	IBERIA	LATA M	INTERNATIONZA
OFFICES
Direct and delegate	3,136	1,419	ર્કર ર
Bancassurance	2,519	5,354	41
INTERMEDIARIES
Agents	10,231	13,623	7,212
Delegates	2,791	3,824	198
Brokers	4,541	34,737	2,082

Customer service centers

In order to address client needs and guarantee the best possible service, the Group operates the following service centers, broken down by country of operation:

Service centers	Number	Countries
In-house claims handling and rapid payment centers	108	15
In-house automobile service centers	ਦੇਤੋ	3
Automobile diagnostic units	8	5
Repair shops with signed agreements	10,986	24
In-house repair shops	10	3
Research and development centers	6	6
In-house health care polyclinics	22	3
Clinics with signed agreements	15,657	17
In-house dental clinics	6	1
Corporate business management centers	6	4

DIGITAL BUSINESS

MAPFRE operates in digital business through four business lines, and has a structured, focused and participatory strategic model in place that provides for continuous updating of the plan, both at corporate level and in each of the regions, countries and business units. In 2019, MAPFRE generated revenues of 1.33 billion euros from its digital business, an increase of 16.7 percent over the previous year.

The English version is a translation of the original in Spanish for information purposes only. In essen shall prevail.

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To boost growth profitably in Digital Business across the Group, the following lines of action were executed in 2019:

· Strategy and development of digital business: VERTI Germany rolled out a completely digital Life Protection product. Demand for digital Life products has also been analyzed in several countries.

This bears testimony to the fact that the marketplaces phenomenon is becoming increasingly relevant in clients' activities. MAPFRE has advanced its positioning in this channel in 2019 to improve brand awareness, attractiveness and sales.

In addition to these projects, and once the strategic digital business framework was defined in 2018 for pure and mixed models, in 2019 we worked to secure the necessary tools to further boost digitalization, so as to encourage decision-making in an orderly and uniform manner.

In 2019, the detection and export of best practices enabled us to activate more than 30 projects resulting from these best practices in different operations.

Digital marketing: MAPFRE continues to evolve in its digital attractiveness model based on data and on the knowledge and identification of client groups determined by technical management teams. This enables us to improve campaign results, by personalizing them more and by using the most effective digital media, both organic and paid. Artificial intelligence models have been applied to optimize actions and automate processes, and a data management platform that has further optimized campaign results in this market has been used in Spain. Furthermore, agreements with the main global digital media operators have been strengthened. Finally, the platform of portals and sales websites has evolved to optimize the positioning of the contents and the ease with which they are managed, and in 2019 sessions on the main sales and servicing sites increased by more than 30 percent, surpassing 76 million visits. We have also optimized the use of office and agent positioning on search platforms, with an increase in activity of approximately 80 percent.
· Digital techniques: with the aim of continuing to improve the profitability of the digital business and its technical management, in 2019, special attention was paid to the prevention of fraud at the time of issuing, with actions aimed at improving the selection and quality of the underwritten risk. Technical indicators were also developed that allow the company to discover the evolution of client value, new business, renewals and the profitability of digital business. Progress has continued in the optimization of prices for renewal, adapting the price to each client's risk.

• Comparison engines: with the aim of competing in a more sophisticated manner in the comparison engine channel, progress was made in price optimization for each The English version is a translation of the original in Spanish for information purposes only. In ease of discrepancy, the Spanish version shall prevail.

client in real time, which has optimized the company's positioning in comparison engines. MAPFRE has also expanded its presence in comparison engines in Mexico and has evaluated new ways of closing business via WhatsApp on the RASTREATOR site. In addition, several drivers helped to understand behavior and impact in the comparison engine channel, such as "Green Forest" and "Price Guaranteed," both of which were carried out at VERTI Spain. The global online comparison engine program was taught at the MAPFRE Corporate University, in the Digital Business Room, which enabled 315 Group professionals to train up in this area.

· Sales and client retention: in 2019, significant progress was made in improving the pricing and digital contracting of products, in terms of further simplification and better adaptation to mobile devices, as well as in the ROPO processes (research online, purchase offline) to bring digital leads to contact centers and sales networks. Online underwriting was close to 5.5 million and approximately 700,000 policies sold can be classified as 100 percent online. The platform for the development of digital underwriters and contractors evolved to facilitate the development of advanced front ends that are managed by business teams, incorporating advanced chatbot processes and virtual underwriting and contracting assistants as new sales channels. Improvements in the usability of the pricing calculators, awarded the "Insurance Digital shopping experience award" by J.D. Power in the United States, continue to be promoted. The methodology for optimizing the conversion rate in the sales information, underwriting and online sales processes was also deployed. Finally, a corporate campaign management solution has been deployed in the main Group companies, which enables the development of coordinated and personalized actions focused on offering clients the most appropriate solutions at any time based on their profile.
· Digital data and analytics: data is becoming increasingly important, especially in the digital world. As such, the collection, analysis and integration of digital data with internal systems and big data were all promoted in 2019. A model for the generation of corporate models in big data has been developed, which enables rapid application and adaptation to each company, and retraining of the models with local data. Development of the first industrialized models has begun: the propensity to purchase model, the personalization model and the attribution model in digital processes, as well as reporting and alert systems.

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

PROVIDERS

[GRI 102-9, 102-10, 214-1; L.11/2018]

The objective of MAPFRE is to ensure an ethical and socially responsible process in the performance of all professionals and companies that provide a service, either to the Group or directly to clients. This is all while obtaining an adequate level of quality in hiring and service to clients, and an increase of internal control in all phases of the project.

To achieve this, MAPFRE has a Purchasing standard designed to establish economic, environmental, social and governance criteria and mandatory compliance principles that must be observed in all hiring concluded on behalf of MAPFRE. The Group Code of Ethics and Conduct contains a specific section for providers and collaborating companies that defines the framework within which the relationship must be developed.

The Group works with more than 177,000 providers, making a distinction between service providers and specific providers (those who perform services and assistance as per insurance or service contracts offered by the Group's insurance companies or its subsidiaries to its clients) and support or general providers (those who do not work directly with insureds, but rather with the company as it conducts its affairs, such as supply, consulting firms, printers, etc.). The following table shows the breakdown by number and total cost:

		BERTA	LATATATY		INTERNATIONA
	No. of providers	Cost (million euros)	No. of providers	Cost (million euros)	No. of providers	Cost (million euros)
Of services (Specific)	73,665	1,684	50,371	847	34,512	503
Of support (General)	3,692	423	8,950	290	6,007	293

To strengthen the relationship with providers and provide better customer service, MAPFRE supplies various materials, training dossiers, tools, and online and on-site courses for providers, in order to facilitate them as they go about their work and to keep them updated regarding regulatory changes, technological developments and other relevant topics in the area of sustainability.

Service provider management model

The English version is a translation of the original in Spanish for information purposes only. In asse of discrepancy, the Spanish version shall prevail.

In many cases, service providers are the party that interacts directly with the client on behalf of MAPFRE. Given its importance, the company has a specific model for managing service providers developed under the strategic initiative of "Providers as Brand Ambassadors."

The model is based on applying general principles, which are client orientation,

optimization of client contact, two-way commitment, provider value, provider classification and cost optimization.

This common contribution model involves continuous feedback for regarding the commitments between MAPFRE and the provider, such that any increase in the relationships in the model results in the establishment of new commitments by both parties. Obviously, these commitments are adjusted based on the category of provider involved.

Common contribution model

Provider category defined by MAPFRE and mutual

The English version is a translation of the original in Spanish for information purposes only. In espanish version shall prevail.

In 2019, work continued on promoting transformation projects in 24 countries on the back of the implementation of the common contribution model, as well as on policing the main project efficiency and quality indicators.

Sustainable management of providers

[GRI 308-1, 308-2, 403-7, 408-1, 409-1, 410-1, 412-3, 414-1, 414-2; L.11/2018]

Within the Sustainability Plan 2019-2021, the ESG (Environmental, Social and Governance) management line of service providers initiated in the previous sustainability plan is continued and expanded. The purpose is to analyze and guide sustainability practices that providers carry out so that they are aligned with MAPFRE standards. This management includes the ESG approval of service providers as well as other training in Human Rights and awareness in the 2030 Agenda.

The following objectives have been established in the MAPFRE Sustainability Plan 2019-2021, to be achieved by 2021:

To expand the sustainable management of providers model to the Homeowners and Automobile lines, selecting providers that have a more significant relationship with MAPFRE ("ambassadors," "recommended+" and "recommended" categories).
Provide training in Human Rights for 75 percent of providers who meet ESG criteria in the Group. This training is provided by the United Nations Global Compact Spanish Network.
Raise awareness of the United Nations 2030 Agenda for sustainable development, among at least 50 percent of approved providers.

ESG approval process

This approval and control process involves an initial analysis of the sustainability practices of the providers, which is carried out through a specific questionnaire that includes the following risk factors:

Occupational safety and workers' health.
Human Rights: child and forced labor, basic human rights, etc.
Environmental practices and sanctions.
Inclusion, diversity and non-discrimination.

Based on providers' answers in an initial questionnaire, the following steps shall be taken: if all the criteria are correct, the ESG process is approved and, if not, an action plan is proposed to turn the situation around. Through this process, it is possible to have a risk map and include mitigation measures through the action plan. This process is recurring and also applies to provider renewals.

The English version is a translation of the original in purposes only. In case of discrepancy, the Spanish version shall prevail.

Satisfies ESG APPROVAL requirements INITIAL ANALYSIS OK APPROVAL Partially completed Analysis ( MAPFRE ESG (information missing, Action Plan following QUESTIONNAIRE) explanations required, Action Plan etc.) No OK REJECTED

ESG APPROVAL PROCESS FOR SERVICE PROVIDERS

In 2019, the model was consolidated in Colombia and launched in Mexico. Since 2017, a total of 6,834 providers were invited to participate in approval processes with ESG criteria, with 78.68% of those invited to participate passing the approval process satisfactorily as of December 31, 2019.

QUALITY

To evaluate the quality perceived by clients, the MAPFRE Quality Observatory applies a global model for measuring the MAPFRE client experience, the aims of which are as follows:

To constantly be aware of the level of client satisfaction in the different countries and businesses, using a consistent methodology.
To identify those aspects that impact on the client experience, so they can be enhanced.
To provide countries with a tool to help them define and implement initiatives, assigning the most appropriate priority level.
To set goals for improvement and aspire to be a benchmark in client experience across all countries and lines.

Additionally, the MAPFRE Quality Observatory is responsible for measuring the quality perceived and delivered, and conducts client surveys in every country where the Group operates. These surveys cover all lines of insurance and assistance services and are conducted every six months. This is done through the analysis of the Net Promoter Score (NPS®) that evaluates client satisfaction and critical client touchpoints, and recommendations are drawn up regarding the main areas that could be improved.

The English version is a translation of the original in Spanish for information purposes only. In asse of discrepancy, the Sparish version shall prevail.

The reports drawn up by the Quality Observatory provide data on the client experience, assisting with the decision-making process in the different business areas.

In 2019, the eighth and ninth NPS® measurement waves were carried out, involving a representative sample of MAPFRE's portfolios. These waves, with over 140,000 respondents, each involve 23 countries and lines of business and cover 81.9 percent of the total private Non-Life premiums of the Group.

In addition, once a year, the Observatory measures the client experience level of MAPFRE's major competitors in each country/line of business, analyzing approximately 120 companies around the world. This analysis reveals that the objective set for 2019 was met, namely, to obtain an NPS® from MAPFRE's clients greater than the average NPS® of competitors analyzed, in excess of 71 percent of the premium volume measured.

To complement these measurements of relational NPS®, the Quality Observatory defined a Global Model for transactional NPS®, which allows MAPFRE to find out, in real time, a client's perception after interacting with us. This model is currently in place in Brazil and Spain.

Likewise, in 2019 the Quality Observatory carried out the second measurement on the experience of internal clients (iNPS®) and on the assignors and brokers for the reinsurance services provided by MAPFRE RE.

MAPFRE has 220 people - a significant number of employees - assigned to quality control and monitoring throughout the world, and several companies are in possession of quality certifications. To renew these certifications, these companies must maintain high customer service standards.

MAPFRE holds ISO 9001 certification in Brazil, Spain and Turkey. MAPFRE ASISTENCIA holds this same quality certification in Algeria, Argentina, Bahrain, Brazil, Chile, China, Colombia, Ecuador, Philippines, Italy, Mexico, the Dominican Republic and Tunisia.

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

6.3. HUMAN DIMENSION

WE ARE TALENT

MAPFRE is a company of opportunities; it is diverse and inclusive and has the best professionals ready to serve its clients and develop the business. Its human capital comprises a team of committed and talented people, with a management model where professional development, knowledge management and acquisition and solidarity are tirelessly promoted.

What are we working on to create value?

Management model ●
Diversity and inclusion
The continuing talent challenge
Transformation and organization
Employee experience ●

Link to MAPFRE's priority SDGs:

Climate Action
Partnerships to achieve the Goal
No Poverty
Good Health and Well-being 4. Quality Education 5. Gender Equality

8. Decent Work and Economic Growth

MANAGEMENT MODEL:

[GRI 401-1, 401-2, 404-1, 404-2, 404-3, 405-1, FS1; L11/2018]

Employee management is particularly relevant in a global company such as MAPFRE, which has a worldwide presence and employees from 84 countries. This management goes hand in hand with the business as it undergoes transformation, enhancing employee commitment to the company's values and contributing to the development of technical, global and transformational skills in a healthy, diverse and collaborative work environment.

Some of the most relevant aspects of this management are:

The integration of all generations of employees who work together in the company, maximizing each person's the knowledge.
The use of new technologies and social networks for employee development.
Communication and transparency with employees, in order to make them feel part of MAPFRE's strategy, objectives and culture.

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

Planning for professional careers and continuous training.
A firm commitment to the occupational and geographic mobility of employees to ensure that the organization has global versatile teams in place.

This dimension is complemented by the People and Organization 2019 report, verified and published on the corporate website.

GENERAL INFORMATION [GRI 102-7, 102-8, 401-1; L.11/2018]

on workforde
Workforce at December	34,324	35,390
Average workforce	34,645	35,658

Total number of employees by type of employment contract (permanent or temporary) and by gender

BUSINESS UNIT		PERMANENT BERR	TEMPORARY	THOTAL
	MEN	WOMEN MEN		WOMEN	MEN	WOMEN
CORPORATE AREAS	623	451	10	10	633	461
INSURANCE	12.422	15.358	181	264	12.603	15,622
ASISTENCIA	1.736	2.163	198	252	1,934	2,415
GLOBAL RISKS	97	108	O	ਤੇ	97	109
RENSURANCE	220	217	ব	9	224	226
FOR FALL BOOK FOR BOOM	15.098	18,295 393		: 538	15.491	18.833

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

ਰੇਤੇ

COPIA ELECTRÓNICA Código seguro de verificación (CSV): xIvfjCSHJswnKZUFv5fe Esta es una copia auténtica imprimible de un documento electrónico archivado por la CNMV, según el artículo 27.3 c) de octubre. Su autenticidad puede ser contrastada a través de la siguiente dirección: https://sede.cnmv.libreAcceso/CSV.aspx

Total number of employees by employment contract/gender (according to MAPFRE Group structure: Regional, Business Units and Central Services)

Comments of the comments of the mannel of the programment of the common and the mannel of the mannel THE CHILING THE CONSULTION CONSULTION CONSULTION CONTRACT THE CONTINE CONTRACT CONTRACT CONTRACT CONTRACT 2.1900. 4455 FEA 14 1999 14 9 9 5 5 1 6 3 2 2 7 2 8 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 NIZATIONAL DISTRIBUTION STATULA					PASSALE (1) . Apr 1914148 . (1) PHONE PRODUCTION (1990) . PRODUCTION (1990) . (1990) . 1550 150 150 1177
					MENE
CORPORATE AREAS / CENTRAL SERVICES	789	611	10	13	799	624
IBERIA	4.565	4,944	76	186	4,641	5,110
LATAM	6,075	7,978	141	166	8.216	8,144
INTERNATIONAL	3.449	4.545	182	184	3.611	4,729
REINSURANCE	220	217	1	9	224	226
(1) ========================================================================================================================================================================== PERSONAL CONSULTION COLLECTION TELLENGER CONSULTION CONSULTION CONSULTION CONSULTION CONSULTION CONSULTION CONSULTION CONSULTION CONSULTION CONSULTION CONSULTION CONSULTION C A					538 15 491 15 491

Type of contract, by gender, age and professional category

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CORPORATE AREAS	633	459	0 363 190	2 1.631 391	633	461
INSURA NCE	12,240	13.991 2.024			12,603	. 15,622
ASISTENCIA	1,744				1,934	2,415
GLOBAL RISKS	97	109	O	0	97	109
REINSURANCE	224	223	0	3	224	226
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Total number of employees by type of employment contract (full-time or part-time) and by gender

2011/04/2019/02/2019/11/21/2019/04/2019/04/2019/09/2019/09/2019/09/2019/01/2019/08/2019/08/2019/08/2019/08/2019/08/2019/08/2019/08/2019/08/2019/08/2019/08/2019/08/2019/08/201 CART STORE CONTRACTOR CONTRACTOR CARTING CARACTER STATUS COLLEGE STATES PART PERFECT PERFECT WER PART PART PART PART PART PART PART PER PARTY PER THE PERSELLER PARTY PER THE PERSELLER PROFILE PART PER THE COLLECT COLLECT COLLECT COLLECT CO SOG SOCIETY BOST STATE STATES A BER BE LE SE SE SE MEN WOMEN MEN							BOOMERS GENERATION & GENERATION Y GENERATION Y The County of Children of the Comments of Children Comments of Children		(1) 2012) 22:53 PM (1999) 2017) 11:48 (11) 1999) 1999 (1992) 1992 1999 100 1000 100 100 100 100 100 100 100 1000 100 100 1000 100 1000 100 1000 100 1000 1000 1000 1000 1000 1		. VETERANS VETERANS A ST ST P S A FEL PARL CO ALLER SECTION CONTRA
	and and and and and and on the more and provincial commend					ነ እንደ የ የ የ /	Compress Construction September 1994 September 1997 September 1999 March 1999 Market 19 VOMEN MEN WOMEN MEN WOMEN WOMEN MEN	II - SEEESSE TAS ANARESTASTICA	седания с поставляется подародного при		and the country of the market of the may be any and the may be any and	Carrer - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 11 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
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2,90 TOTALS TOTALS 2,290 5,999 7,175 4,800 6,									** * *************************	A 3 8 8 5 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	1,012 1,494 104 104 102 32,3	. Least Land Comments of

In this table, the entire workforce (94.2%) is represented, except for 1,984 employees of Banco do Brasil.

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

Código seguro de verificación (CSV): xlvfjCSHJswnKZUFv5fe COPIA ELECTRÓNICA Esta es una copia auténtica imprimible de un documento electrónico archivado por la CNMV, según el artículo 27.3 c) de octubre. Su autenticidad puede ser contrastada a través de la siguiente dirección: https://sede.cnmv.libreAcceso/CSV.aspx

	2019		2018
			M
New hires	41.7%	58.3%	40.6%	59.4%
Average age	41.5	39.5	40.9	38.9
Average seniority	11.6	10.3	11.2	ਰੇ 'ਰੇ
Unwanted turnover (*)	7.3%	8.2%	8.7%	8.9%
Total turnover	16%	17.9%	17.3%	18.2%

New additions, average age, average seniority, unwanted Group turnover by gender

(*) Unwanted turnover is calculated using the following formula: voluntary resignations/average headcount. Considering the size of the Group, the level is considered low.

Managing the different generations that work together, offering employees the opportunity to develop their professional career and personalizing their options, fostering collaboration in work and knowledge management and introducing new technologies as a tool for providing efficiency and effectiveness are just some of the challenges that MAPFRE has implemented solutions for to contribute to reaching its objectives through four pillars: diversity and inclusion, the continuing talent challenge, transformation and organization and employee experience.

DIVERSITY AND INCLUSION

[GRI 102-8, 102-22, 405-1, 405-2; L.11/2018]

A diverse workforce adds value to the company since it fosters learning, supports experience and simultaneously enriches project planning and execution.

MAPFRE has a Global Diversity and Equal Opportunity Policy in place, approved by the Board of Directors of MAPFRE on July 23, 2015, and for three years now, the company has been publicly committed to both gender diversity and functional diversity.

Gender diversity

[GRI 405-1; L.11/2018]

In 2019, 40.1 percent of positions of responsibility were held by women. All countries have an action policy that promotes equality in each of the personnel management processes.

		2400188
Percentage of women in positions of responsibility	40.1%	40.8%
Number of women in managerial positions	2,382	2,584

The English version is a translation of the original in information purposes only. In case of discrepancy, the Spanish version shall prevail.

18,833 ® MEN D WOMEN 15,491 8,133 8,940 7.511 3.794 2,3791,874 1,185 508 TOTAL Middle Managers ASSOCIATES SENIOR MANAGEMENT ADVISORS

Workforce distribution by job position level.

For the three-year period 2019-2021, MAPFRE has publicly committed ensuring that at least 45 percent of annual vacancies in managerial positions are filled by women by 2021. In 2019, the result was 48.3 percent.

In 2019:

58.3 percent of new hires were women.

81 women occupy C-Suite positions or positions on Boards of Directors. The Board of Directors of MAPFRE S.A. includes five women among its members, which equates to 33.3 percent of its members as on December 31, 2019.

• 25 percent of employees in managerial positions classified as "Top Management" are women, in addition to 41 percent of employees in positions classed as "Junior Management."

· 40.6 percent of job positions of responsibility in business are held by women.

There are networks in place in Mexico, the United States, Brazil, Turkey and Spain to foster women's leadership, which take the form of inclusive dialog spaces designed to promote initiatives related to gender diversity.

In Spain, one of the initiatives executed in 2019 was the first internal program aimed at female leadership, in which 18 women participated.

Cultural diversity

MAPFRE has 34,324 employees of 84 nationalities, which brings great cultural and knowledge diversity to the company.

The English version is a translation of the original in Spanish for information purposes only. In ease of discrepancy, the Spanish version shall prevail.

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International mobility is actively encouraged, and in 2019 this enabled 129 employees to relocate to another country. These employees originate from 25 countries and have been seconded to 24 countries.

With regard to C-Suite and executives who work in the Group companies outside Spain, 80.5 percent are hired locally.

Generational diversity

At MAPFRE, different generations work together with different values, expectations and motivations.

Challenges in this area are:

· To build an inclusive culture and enable different generations to share knowledge.
· To recognize and maximize everyone's strengths and capabilities so that they give the best of themselves.
· To implement work models that address the needs of the different generations.

In 2019, the Aging project was launched in Spain, with the objective of working on specific programs for the group of senior workers, based on three fundamental principles: professional development, employee experience and social protection.

Several generations work together at MAPFRE, as shown in the accompanying graph.

Veterans (up to 1955), Baby Boomers (from 1956 to 1967), Generation X (from 1968 to 1981) Generation Y (from 1982 to 1993), Generation Z (from 1994)

The global mentoring program also continued during the year, both traditional and inverse, as part of an initiative that began in 2016 and which promotes a development process across different generations. The mentoring plan involved 211 mentors and 247 mentees over the course of this year.

The English version is a translation of the original in information purposes only. In case of discrepancy, the Spanish version shall preval.

Functional diversity

MAPFRE is firmly committed to integrating people with disabilities into the workplace with a global program implemented in all countries since 2015 with measures to enable true consolidation of this group within the business.

This program has, among others, measures to improve the quality of life of people with disabilities who are part of the Company. These measures range from personalized attention to employees with disabilities, to the review of the accessibility of work centers and environments, in order to propose the necessary reforms and adaptations. In addition, periodic information campaigns are carried out for the emergence of possible cases of employees with disabilities who have not yet communicated to the company, in order to provide them with the necessary support and access to all the measures at their disposal.

For three years, MAPFRE has publicly committed to having its workforce comprised of a minimum percentage of people with disabilities working in the company. By 2021, the commitment is to have 3 percent of people with disabilities in the workforce.

People with a disability on the workforce	938	2.9	902	2.5

Principal activities undertaken in 2019 regarding disability:

Awareness:
- 827 employees trained via the 2019 e-learning course on disability.
- o 164 volunteer activities involving disabled people.
- o 72 discussions and awareness activities in development training programs.
- o 42 reports on the Intranet.
· Workplace integration actions:
- o In 2019, 96 people with disabilities joined the workforce.
- o 82 interns with a disability gained work experience at MAPFRE.
- e Donations totaling 289,603 euros.
- o Promotion of indirect employment through contracts with special employment centers or similar companies totaling 151,255 euros.

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

THE CONTINUING TALENT CHALLENGE

[GRI 404-2, FS4; L.11/2018]

MAPFRE has a Promotion, Selection and Mobility Policy in place approved on July 23, 2015. This policy manages talent by promoting the professional development of all employees. Three years ago, a global project was implemented that identified the necessary profiles for the business strategy and the talent of the organization. It defines the individual development plans of each employee, while ensuring succession and management plans, as well ensuring strategic needs are covered. These plans help to develop employees with the necessary knowledge and skills, depending on business needs. The plans include training, mentoring, mobility, recognition and remuneration. Development plans were formulated in 2019 for 3,806 employees, involving the implementation of 5,561 activities.

PERSONAL DEVELOPMENT PLANS		% off torial
IBERIA	1,225	32.2%
NORTH AMERICA	294	7.7%
BRAZIL	274	7.2%
LATAM NORTH	524	13.8%
LATAM SOUTH	469	12.3%
EURASIA	293	7.7%
Corporate Areas	249	6.5%
Reinsurance Unit	130	3.4%
Global Risks Unit	57	1.5%
Asistencia Unit	291	7.6%
Total	3.806	100%

The company continues to roll out professional career plans, which 4,778 employees had in 2019. These included underwriters, actuaries, auditors and sales advisors. In addition, in 2019, 2,907 employees developed their careers through training paths for claims handlers, issuers and telephone agents, incorporating new collectives to acquire the knowledge established by these paths.

The English version is a translation of the original in Spanish for information purposes only. In asse of discrepancy, the Spanish version shall preval.

These itineraries establish common technical training worldwide for all countries.

CAREER PLANS

Group	No. of employees
Actuaries	303
Auditors	188
Sales advisors	1,985
Specialized underwriters	670

Attracting external talent

In 2019, the launch of the new Career page was completed globally, with additional features and a more attractive design the referral channel was activated as an additional source of recruitment, involving the employees of the company in the process; this was recognized by the SAP Quality Awards 2019 owing to its high level of innovation and quality.

A total of 898 selection processes were published in 2019, and the number of followers on online portals increased from 179,138 to 282,708.

MAPFRE continues its commitment to young talent, promoting its global "Grow with Us" program to implement practices in the company, and two new training programs were launched for trainees in 2019.

Global Internship Plan: 259 agreements with universities, business schools and third-level institutions. In 2019, 1,179 students completed internships in various areas and across 28 countries.
· Trainee Programs: the main objective of these programs is to recruit recent graduates who are fully prepared and have high potential. In 2019, two Trainee initiatives (Global Actuarial and Tech & Learn) were developed, which involved 21 young people of five nationalities, who join the 125 employees selected from other programs in recent years.

The English version is a translation of the original in Spanish for information purposes only. In asse of discrepancy, the Spanish version shall prevail.

CNMV Oficina: ROD MADRID Registro de Entrada Nº: 2020018771 Fecha de registro: 2020-02-12 01:18:30

Functional mobility

[GRI 202-2, 404-2; L.11/2018]

Mobility remains key to successful employee development and employability. In 2019, 14.9 percent of the workforce enjoyed some form of mobility, representing 4,885 employees:

· Of total managerial movements, 84.1 percent were covered internally.
· Out of 5,326 job positions advertised, 33 percent were covered by internal mobility, and 46 percent involved a promotion.
Through geographic mobility, namely international careers, global mobility and temporary transfers, 24 countries were able to benefit from the services of professionals from 25 other countries. Currently, 269 managers and employees are working outside their country of origin.

Employees may also participate in the temporary mobility program, Task Force, which involves the launch of new businesses or transversal transformation projects through the immediate and coordinated actions of a specialist team. This mobility encourages employee development and the development of global skills, thanks to its international scope. A total of 21 employees participated in related projects in 2019.

Learning and knowledge management

[GRI 404-1, 404-2; L.11/2018]

MAPFRE's commitment to the training of its employees is included in its Code of Ethics and Conduct, as well as, in several of its policies, including the Promotion, Selection and Mobility Policy and the Diversity and Equal Opportunity Policy.

MAPFRE promotes employee learning through the Corporate University, focusing on strategy and business objectives.

The implementation of the MAPFRE Knowledge Management Model was completed in 2019, and the Eureka knowledge repository was created on the Corporate Intranet.

Since 2014, the Corporate University has deployed all learning actions globally through its 17 Schools, 14 Learning Rooms and an InnoLAB. The Corporate University is in operation in all countries where MAPFRE operates, providing training in the three corporate languages and five local languages.

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

CREATION OF SHARED VALUE: WE ARE SUSTAINABLE

TECHNICAL KNOWLEDGE SCHOOLS
SCHOOLS	ROOMS
Insurance School	Life Room Business Room Digital Business Room Automobile Room Assets Room Health Room
	Assistance Room
	Sales Room
Sales and Business Development School	Clients Room
Reinsurance School
Operations School
Actuarial School
Finance School	Investments Room Risks Room
Strategy School
Technology and Processes School
Auditing School
Human Resources School
Legal School
Digital Technical Knowledge Room
CROSS-DISCIPLINARY SCHOOLS
Skills School	Digital Skills Room
Culture school
Global Policy School
Language School
Leadership School
Professional Development School
InnoLab
Director's Room

Some relevant information:

· In 2019, training was provided to 100 percent of the workforce through 1,518,412 hours of training, representing an average of 44.2 hours of training per employee.

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

Código seguro de verificación (CSV): xlvfjCSHJswnKZUFv5fe COPIA ELECTRÓNICA Esta es una copia automito electrinico rolo por la CNMV, según el atículo 27.3) de la Ley 3RONO/.
Esta es una copies transporto de la singional or la CMN, según e artículo autenticidad puede ser contrastada a través de la siguiente dirección: https://sede.cnmv.libreAcceso/CSV.aspx

CREATION OF SHARED VALUE: WE ARE SUSTAINABLE

	HOURS OF TRAINING
	MEN	WOMEN
EXECUTIVES	48,192	27,347
MIDDLE MANAGERS	106,893	92,203
ADVISORS	375,727	416,465
ASSOCIATES	147,341	304,244
TOTAL	678,153	840,259

· More than 60 global technical and transversal programs were carried out.
· A total of 18.41 million euros was invested in training, an average of 536 euros per employee. Investment in training has declined in recent years due to the increased use of virtual courses and training with in-house professionals. However, the number of hours and people trained increases year after year.
The Culture in a Digital World program provided training in the new MAPFRE behaviors and habits. A total of 8,685 employees have completed e-learning training and 19,038 have completed classroom training.
Technical sales training represented 76.9 percent of the total training provided and is fully aligned with the needs of the business.

The transfer of knowledge in the workplace is assessed taking into account the effective use of the knowledge, skills, abilities and attitudes learned as a result of the training initiatives carried out. This evaluation is carried out by those responsible for the training received by their employees. On a global level in 2019, 3,796 questionnaires were completed by those responsible for attending these programs, and the percentage of responses with an assessment of at least four out of six in the degree of knowledge application to the job position was 88.3 percent.

Self-learning, implemented in MAPFRE globally, offers employees training content through open catalogs that enable them to design their own learning path. In 2019, more than 44,700 self-enrolled employees registered to make use of the 230 training resources available.

Mentoring programs

Throughout 2019, development of the mentoring program continued, both traditional and inverse, as a form of development, collaboration and transmission of knowledge among teams. Mentoring not only promotes development but also transmits the company culture and collaborative, respectful and accepting behavior.

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

· Traditional mentoring, where the mentor (the senior partner) transfers their knowledge, experience and culture to the mentee (junior partner). In 2019, there were 158 mentors and 190 mentees.
· Inverse mentoring, where the mentor (junior digital partner) supports the mentee (senior partner) in developing digital skills, the use of technological tools and collaborative platforms, knowledge of digital trends and use of social networks. In 2019, there were 53 mentors and 57 mentees.

CULTURE AND TALENT INDEX

In 2019, an internal index was defined to measure the engagement and development of employees across the organization. The Culture and Talent Index measures two main variables:

Culture (engagement), through:

• ENGAGEMENT SURVEY: a new survey that is used to measure employee satisfaction through the evaluation of their knowledge of the objectives, pride in work done, recognition received for work done, contribution to the company, receiving quality feedback, development opportunities, collaboration, work-related tools, caring for people and pride in MAPFRE's social footprint.

The scoring scale of the survey is 0 to 100, and based on the scores the following engagement levels were defined:

Main results of the Engagement Survey in 2019:

Percentage of employees engaged (score greater than 66)	68%
Global objective for 2019	50.5%
Percentage of employees covered by the survey 23,336 employees
	68 percent of the total workforce

TURNOVER: the percentage of employees who leave the company, voluntarily or involuntarily.
· SENIORITY: the number of years of service of MAPFRE employees.

The English version is a translation of the original in information purposes only. In case of discrepancy, the Spanish version shall prevail.

Caroline

Talent (development), through:

MOBILITY: the number of people who have enjoyed functional or geographical mobility.
· DEVELOPMENT PLANS: employees who have career and development plans assigned to them.
INTERNAL PROMOTION: percentage of managerial positions that are covered . internally.

TRANSFORMATION AND ORGANIZATION

#Digitalchallenge

Driving us forward at MAPFRE

THE DIGITAL CHALLENGE

The Digital Challenge strategic initiative was created at MAPFRE in mid-2017 to champion the transformation and change that the organization needs in order to adapt to new digital requirements, involving a flexible working environment with tools that facilitated collaborative working, the development of digital profiles and new forms of leadership. This project involved work along four lines:

Work environment, where progress has been made in the implementation of flexible hours and remote working, technological mobility and open and collaborative physical spaces. At the end of 2019, a total of 19,290 employees in the organization were availing of a flexible schedule, 6,704 were able to work remotely and 11,613 were working in open-plan spaces.
Collaborative work and knowledge management. In 2019 there were 452 active communities, where 6,310 employees from numerous countries interact continuously. In addition, the eureka knowledge repository was created, where at year-end, 510 pieces of knowledge were stored.
Culture in a digital world. Three approaches were defined for all employees: collaborating, innovating and streamlining. These were promoted throughout the organization through different communication and learning actions, including an elearning course that by the end of 2019 had been completed by 8,685 employees. Team leaders, in addition to these three behaviors, are trained in two more ways: respect and communicate. In 2019, 89 MAPFRE executives attended the MAPFRE Leader Program, where participants worked on the characteristics that a MAPFRE The English version is a translation of the original in Spanish for information purposes only. In ease of discrepancy, the Spanish version shall prevail.

leader must possess: be a digital leader, be a role model in terms of values, be strategic, be transparent, care about learning and be a leader of technical knowledge.

In 2020 this program will be extended to all supervisors in the company.

New forms of remuneration and recognition. The new evaluation system was ເ implemented globally throughout 2019. This system covers objectives, quarterly activities related to objectives and key results (OKR methodology), continuous feedback and the evaluation of new behaviors. By the close of the year, 53,629

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall preval.

activities had been added, 251 employees had per-project bonuses assigned to them and 16,592 employees had a defined recognition plan.

In 2019, the People App was launched in Spain as a new channel, which can be accessed by 5,000 employees, and which facilitates a more agile and immediate dialog with employees while promoting communication and transparency through a series of functionalities:

· Notifications that arrive immediately to mobile devices.
· Procedures such as requesting authorizations, vacations and medical appointments, and consulting and downloading your paycheck.
Operational information about the site at which the employee is located
· Quick learning: these are information capsules for learning about a topic in a quick and fun way.
Surveys. .

Additional features will be added in 2020, and will be rolled out in other countries.

Remuneration and recognition

[GRI 102-35, 102-36, 102-37, 201-3, 401-2, 404-3, 405-2; L.11/2018]

MAPFRE has a global compensation policy in place that is applicable to all Group companies, and which is designed to establish adequate remuneration based on the function and job position and the performance of its professional staff. This policy also acts as a motivating and satisfaction component that enables the achievement of defined objectives and compliance with company strategy.

The MAPFRE Group compensation policy, approved by the Board of Directors of MAPFRE S.A. on December 21, 2016, guarantees equality and internal and external competitiveness in all markets. The pay structure comprises the following items:

o Fixed remuneration
o Annual variable remuneration tied to objectives
o Multi-year variable remuneration, and a three-year cash and stock plan for 260 managers at global level, with the aim of enhancing the medium-term strategic objectives and commitment from the organization's top managers
o Bonus by project and recognition programs
Social benefits O

The English version is a translation of the original in Spanish for information purposes only. In espanish version shall prevail.

Other allowances C

In order to determine the percentage of variable remuneration compared to fixed remuneration, the following optimal target percentages of variable remuneration have been established with respect to fixed remuneration for each job position level.

ob position level	Variable remuneration as a percentage of trotal inxed remuneration
Executives	40%
Middle managers	30%
Advisors	20%
Associates	10%

The assignment and settlement of annual variable remuneration happens through the objectives-based management model implemented worldwide, which determines the weight of the various categories of objectives for each job position level. In this way it is possible to align each person with the strategic objectives, those of MAPFRE as a whole, or those of their region or country. Increasing weight is assigned for this type of objective based on the greater responsibility of the job position, and lending - in the case of the advisory and associate teams - greater weight related to the specific functions with which they contribute to the general objectives.

@ MAPERE MBO 2018	GROUP OBJECTIVES
148 JOB POSITION	(*)GLOBAL BSC 不可,一方一般的角度	CORP. AREA/BUSINESS UNIT/REGIONAL/TERRI TORIAL	COUNTRY/COMPANY 117 11:12 11:11	AREA / DEPARTMENT	INDIVIDUAL OBJECTIVES
CHAIRMAN AND CEO	100%
EXECUTIVE COMMITTEE	60%	40%
C-SUITE	40%	30%	30%
SENIOR MANAGEMENT	10%	10%	40%	40%
MIDDLE MANAGERS	5%	5%	30%	60%
ADVISORS AND ASSOCIATES	5%	5%	10%	20%	60%

* BSC refers to goals related to the MAPFRE Strategic Plan on a global level. The figure for earnings after taxes and non-controlling interests of MAPFRE S.A. is generally applied.

[GRI 102-37]

New performance assessment system

MAPFRE has put in place a global, standardized performance evaluation process in which 26,416 employees participated in 2019, representing 84 percent of the workforce.

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

Over the course of 2019, the new Performance Evaluation model was rolled out at MAPFRE, which complies with the prerequisites of agility, continuous feedback and a multi-source system. After an intense communication program, all phases of the 2019 process were covered, and the 360° evaluation was initiated. In this phase, an intense evaluation activity takes place among peers and internal clients, which were selected in November. This is one of the most innovative aspects within the model, and it will offer the widest vision of the perception of employee performance from every angle. The process will be completed at the end of January, with the overall assessment and potential of the employee.

Pay gap (L. 11/2018)

In 2018, a methodology for calculating the pay gap was defined, applied and verified by the consultant Ernst & Young (EY), which calculates two types: the gross Gap and the adjusted Gap. The terms 'Gender pay gap' and 'Equal pay gap' are used, respectively.

The gross Gap is calculated as follows:

The most precise measure is one in which the detail can be obtained by homogeneous comparable groups: the adjusted gap. Three factors are used to calculate this: job position level, family and seniority. These three factors create comparison groups or clusters within which people with the same comparison criteria are grouped. The formula for calculating this type of gap is:

$$\text{EQUAL } \text{PAY } \mathsf{GAP} = \sum_{n=1}^{N} \left( \underbrace{\begin{array}{c} \text{GENDRIR } \text{PAY } \mathsf{GENAR } \text{CLASTR } \text{* } \text{NUMBER } \text{or } \text{NUMBER } \text{IN } \text{THE } \mathsf{CLASTR} \ \hline \text{TOTAL } \text{NUMBER } \text{of } \text{EMPTLOYERS } \text{ANALYER} \end{array}}_{\text{E}} \right) \right) = \sum_{n=1}^{N} \left( \underbrace{\begin{array}{c} \text{SPEC-} \text{TA-} \text{TA-} \text{TA-} \text{TA-} \text{TA-} \text{TA-} \text{TA-} \text{TA-} \text{TA-} \text{TA-} \text{TA-} \text{TA-} \text{TA-} \text{TA-} \text{TA-} \text{TA-} \text{TA-} \text{TA-} \text{TA-} \text{TA-} \text{TA-} \text{TA-} \text{TA-} \text{TA-} \text{TA-} \text{TA-} \text{TA-} \text{TA-} \text{TA-} \text{TA-} \text{TA-} \text{TA-} \text{TA-} \text{TA-} \text{TA-} \text{TA-} \text{TA-} \text{TA-} \text{TA-} \text{TA-} \text{TA-} \text{TA-} \text{TA-} \text{TA-} \text{TA-} \text{TA-} \text{TA-} \text{TA-} \text{TA-} \text{TA-} \text{TA-} \text{TA-} \text{TA-} \text{TA-} \text{TA-} \text{TA-} \text{TA-} \text{TA-} \text{TA-} \text{TA-} \text{TA-} \text{TA-} \text{TA-} \text{TA-} \text{TA-} \text{TA-} \text{TA-} \text{TA-} \text{TA-} \text{TA-} \text{TA-} \text{TA-} \text{TA}$$

Clusters are established locally based on these factors. If a pay gap is determined when these calculations are made, an action plan will be established.

The Corporate People and Organization Area is currently working on an action plan that includes a series of recommendations to address the wage gap situations.

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

There follows details of the adjusted gap on fixed remuneration in the main countries where this methodology is already applied1:

	COUNTRY EQUAL PAY GAP
Spain	5.96%
Brazil	1.17 %
Peru	2.96%
Turkey	0.42%
Italy	0.68%
Germany	1.89%

The adjusted global gap in fixed remuneration for the Group, as calculated for 90 percent of the workforce, is 3.06 %2.

See Note 3 and Note 4 for information on average remuneration.

Organization

Fostering team work culture and collaboration, all through an agile organization, is one of MAPFRE's objectives. MAPFRE has a universal task and job position map in place, which assists in the definition of strategic profiles and knowledge within the organization.

In 2019, work began on the dynamic structures project and progressed in the definition of the roles of each job position, implementing collaborative tools for both project management and knowledge management.

In 2019, 1,200 people worked with agile methodologies, and 59 projects were deployed to and through them.

EMPLOYEE EXPERIENCE

[GRI 403-1, 403-2, 403-4, 404-3, 403-4; L.11/2018]

Employee experience is a transversal element in the people management strategy. This is a new people management approach, in which the employee is at the center of our processes and in which the company empathizes with the employee at each life cycle touchpoint in the company, so as to offer workers what they need, when they need it

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

¹ in the rest of the countries, an analysis has been carried out using clusters that exclusively take into account the professional level factor, generally due to the small workforce.

² The calculation does not include the following countries: China, Egypt, United States, Japan, Singapore and Sweden.

and the way they need it, in order to help them to perform at their best (talent and productivity) and commit to MAPFRE (engagement).

The MAPFRE employee experience management model considers the design of an Employee Journey (employee life cycle) that identifies the different moments of employee interaction with the company, from before joining the company until the moment they leave, and a system that facilitates continuous analysis.

With the objective of personalizing and segmenting employee proposals and thus improving their experience, the HR Analytics project was launched to enhance people management. The first predictive model for identifying job positions and employees with a higher probability of rotation was established in 2018, and parameters and levers to work on each situation were defined. The predictive compensation model was developed during 2019.

Additionally, in 2019 an analysis model of the different touchpoints in the employee's life cycle was designed and this will be launched in 2020.

Conciliation and well-being

[GRI 401-2, 401-3, 403-1, 403-2, 403-3, 403-4, 403-5, 403-6, 403-8; L.11/2018]

Work life balance measures	No. of employees benefiting
Flexible work schedule	19,290
Part-time work arrangements	2,553
Reduced workday	1,073
Teleworking	1,529
Paid and unpaid leave	16,198
Parental leave ●	560
Maternity leave	837
Sabbaticals for study/family purposes	47
Employee reintegration program following a protracted leave of absence	79

The English version is a translation of the original in Spanish for information purposes only. In espanish version shall prevail.

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Código seguro de verificación (CSV): xIvfjCSHJswnKZUFv5fe COPIA ELECTRÓNICA Esta es una copia auténtica imprimible de un documento electrónico archivado por la CNMV, según el artículo 27.3 c) de octubre. Su autenticidad puede ser contrastada a través de la siguiente dirección: https://sede.cnmv.libreAcceso/CSV.aspx

CREATION OF SHARED VALUE: WE ARE SUSTAINABLE

rype of social benefit	Percentage of employees who enjoyed social benefits from among the entitled employees
Health insurance	95.3%
Retirement/Life insurance systems	96.6%
Insurance discounts	67.2%
Length of service awards	21.6%
Educational grants for the children of employees	42.9%
Newborn child bonus	4.1%
Loans	19.2%

All benefits are offered regardless of whether employees are on permanent or temporary contracts. The total amount allocated to social benefits in 2019 amounted to 178.3 million euros.

Aid was also made available to employees for special situations, normally resulting from health problems. In 2019, the total for this aid amounted to 78,123 euros. Likewise, financial aid was granted to retired employees in the amount of 671,647 euros.

MAPFRE has a Health and Well-Being Policy and a Occupational Risk Prevention Policy in place, approved by the MAPFRE S.A. Board of Directors on July 23, 2015, the general principles of which are:

1. Achieving a healthy working environment that ensures well-being and allows all employees to carry out their work in the best physical, mental and social conditions.
1. Achieving an optimal level of occupational safety, beyond mere compliance with regulations in the area of prevention of occupational risk.

It also adopts a prevention model through which workers may actively participate in everything that might affect their health and safety at work, for which there are legally established representation channels. A total of 29,552 employees, or 86.10 percent of the workforce, are represented on joint management-employee health and safety committees, which have been set up to help, monitor and advise on this issue. Some of the main issues discussed in these committees are:

o Evacuation and emergency control plans.
o Frequency and content of medical examinations for employees.
O Occupational Health and Safety Management Systems.
o Return after long-term injuries.
O Specific studies of certain job positions.
o Health monitoring plans.

The English version is a translation of the original in Spanish for information purposes only. In espanish version shall prevail.

o Performing occupational risk assessments in the workplace.
O Analysis of labor casualties and absenteeism.

MAPFRE has a healthy company model that systematizes the actions to be carried out in terms of promoting both physical and mental health, and in the work environment as well as in the personal and family life of employees. The model considers five areas in which the company can work in terms of health: work environment, personal environment, health promotion, nutrition and physical activity, and mental well-being. The MAPFRE Health Promotion strategy involves working on the main causes of death and illness worldwide, which according to the WHO and other international organizations essentially means intervening for the prevention of non-communicable diseases and for psychological-emotional well-being.

Maternity leave was taken by 837 employees in 2019, while paternity leave was taken by 560 employees. At the end of this leave3, 83 percent of women and 98 percent of men returned to work. Out of the 1,832 employees taking maternity or paternity leave in 2018, 1,095 remained in the workforce, resulting in a retention rate4 of 59.8 percent.

Accident data

[GRI 403-9, 403-10; L.11/2018]

	2019
	Men	Women
WORK-RELATED ACCIDENT FREQUENCY RATE	26.14	21.741
OCCUPATIONAL ILLNESS FREQUENCY RATE	0.52	0.86
INCIDENCE RATE OF OCCUPATIONAL ILLNESSES	12.79	21.04
INCIDENCE RATE OF WORK-RELATED ACCIDENTS	689.67	531.24
RATE OF LOST DAYS	1.13	2.27
EMPLOYMENT ABSENTEEISM RATE	0.11	0.23
FREQUENCY INDEX	3.91	3.25
SEVERITY INDEX	0.16	0.372
DEATHS FROM WORK-RELATED ACCIDENTS	0	0
DEATHS FROM OCCUPATIONAL ILLNESS	0	0
NO.OF WORK-RELATED ACCIDENTS	100	101
NO. OF OCCUPATIONAL ILLNESSES	2	রা
NO. OF HOURS LOST THROUGH ABSENTEEISM DUE TO NON- WORKPLACE ACCIDENTS AND COMMON ILLNESSES	491,469	1,299,069

3 Return-to-work rate: (total number of employees who returned to work after parental leave/total figure of employees who were due to return to work after parental leave) *100

4 Retention rate: (total number of employees retained 12 months after returning from parental leave/total number of employees who return after parental leave during the reporting period) *100.

The English version is a translation of the original in Spanish for information purposes only. In Case of discrepancy, the Spanish version shall prevail.

See Note 5 of this report: calculation method.

One of the key factors in the healthy company model is training in health and healthy habits, and prevention of work-related risks. In this regard, in this fiscal year:

· Employees received a total of 13,015 hours of specific training.
· During the week of June 10 to 14, 2019, the fourth edition of MAPFRE Week was held, covering the topics of health and well-being, in 31 countries and representing 84.7 percent of the workforce. A total of 862 activities were organized: 806 in Health and Well-being, 36 in the field of the work environment, 208 in health promotion, 269 in physical activity and nutrition, 138 in mental well-being, 155 in personal environment and 56 in Diversity.
· Global campaigns were organized on the Corporate Intranet related to Stroke and Gender Health and Breast Cancer prevention (the Think Pink movement), and 9 volumes of the Choose Health campaign of Fundación MAPFRE were distributed.

To find out more about the Group's campaigns, please consult the MAPFRE People and Organization 2019 report.

· Internal climate: Organizational climate surveys

In 2019, a new model was introduced to measure the employee experience, which enables a more in-depth analysis on a continuous basis. This model is based on three types of measurements that provide agility for implementing improvement actions:

Through a survey performed twice a year, different indicators are obtained:

Relational eNPS®: this shows how likely employees are to recommend MAPFRE as a company to work for. In 2019 it was measured in 11 countries, in addition to the Business Units and Corporate Areas. Of the total staff of these groups, 86 percent are in countries that have a very good or excellent Employee Net Promoter Score.
· Root causes level 1 and level 2: the main reasons why an employee recommends MAPFRE to a lesser or greater extent as a company to work for. They highlight as the reason for their highest level of recommendation, first of all, the conditions and benefits that MAPFRE offers to its employees, specifically job stability and work-life balance, and secondly, the company's culture and vision, stressing the

The English version is a translation of the original in purposes only. In case of discrepancy, the Spanish version shall preval.

employees' appreciation of the way in which the company's values are put into practice on a day-to-day basis and MAPFRE's ability to transform itself.

· Supervisor's recommendation: Leader Index measures the extent to which employees would recommend their supervisors. In 2019, on a recommendation scale of 0 to 10, 57 percent of employees gave a score of 9 or 10.
· Employee Satisfaction Index: measures employee satisfaction through the assessment of 10 factors: Knowledge of objectives; Pride in work carried out; Recognition of one's work; Contribution to the company; Receiving quality feedback; Development opportunities; Collaboration; Work-related tools; Taking care of people; Pride in the corporate footprint. In 2019, 68 percent of employees scored these variables with an average of 8, 9 or 10 (on a scale of 0 to 10).
· General Satisfaction Index: measures the overall satisfaction of employees. In 2019, 72 percent of employees rated their level of satisfaction with the company at 8, 9 or 10 (on a scale of 0 to 10).
· Index of perceived quality of people management in MAPFRE: In the year 2019, for the first time, a survey of Perceived Quality of HR was launched in order to assess how employees perceive the quality of service provided by the Human Resources areas.

Volunteering

[GRI 413-1, 413-2; L.11/2018]

MAPFRE has a Corporate Volunteering Program in place that is integrated into the Human Resources and Sustainability strategies, aligned with the Sustainable Development Goals. This program has been developed in 28 countries through Fundación MAPFRE.

Throughout 2019, more than 10,380 volunteers took part, including employees and family members, and more than 1,610 activities were developed throughout the world in relation to education, nutrition, health, emergency assistance, etc. that directly impacted more than 125,000 people. More than 20 percent of the workforce has had volunteering experience.

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

Among the activities carried out in 2019, it is worth highlighting the following global activities:

MAPFRE's Global Volunteering Day, in which, under the slogan "United for the Environment," more than 2,300 volunteers from 25 countries participated in 78 activities with an environmental theme. More than 1,900 trees were planted and more than 14 tons of garbage were collected.

24-hour blood drive, in which more than 870 liters of blood were collected, with the participation of 1,936 donors in 25 countries and benefiting more than 5,800 people

MAPFRE has several bodies that encourage and monitor Volunteering, the Volunteering Committee and the Work Group, made up of MAPFRE senior management representatives from corporate areas, regional areas and business units, and with the participation of Fundación MAPFRE.

It should be noted that in Spain the AENOR certificate has been obtained for the management of this program, and in the United States, volunteers have been recognized by Webster Public Schools, by the Worcester Community Action Council, by the Commonwealth of Massachusetts State Senate, and the Best Buddies Spirit of Inclusion Award has also been awarded to the company for the Identity Dissociative Disorder adult training program, in which volunteers served as mentors. In China, volunteers have been recognized for their efforts by the Changning Special School.

In addition, employees take part in other social projects such as the "Solidarity Euro" in Spain and "Dollar for Dollar" in the United States. This initiative offers employees the opportunity to donate one euro/dollar per month from their paycheck to a non-profit project of their choice, with MAPFRE matching every euro/dollar donated.

To date in Spain, a total of 346,696 euros have been donated to social projects. The projects benefitting in 2019 were the APACU (Association of Parents with Children with Autism of Cuenca) and Fundación Aladina (an organization that fights against childhood cancer), receiving a total of 128,332 euros.

In the United States, the project that benefited in 2019 was "The Adam Bullen Memorial Foundation," which supports people with cancer and their families, and which received 22,719 dollars.

See Note 9, Contribution of Volunteering to the 2030 Agenda

The English version is a translation of the original in case of discrepancy, the Spanish version shall preval.

<-- PDF CHUNK SEPARATOR -->

INTELLECTUAL DIMENSION 6.4.

We generate proposals of differential value for customers, from a transversal and integral vision that allows us to respond to WE ARE INNOVATION business challenges involving our stakeholders.

What are we working on to create value?

Innovation .
Cybersecurity
Brand and reputation .

Link to MAPFRE's priority SDGs:

Decent Work and Economic Growth 9. Industry, Innovation and Infrastructure
Partnerships to achieve the Goal
Climate Action

INNOVATION

MAPFRE has a long history of being an innovative company. Innovation is in its DNA and is one of its main levers to boost organic growth and project its strategic outlook. This permanently generates differential value propositions for clients, with a transversal and integral vision that means it can respond to business challenges.

In 2018, a further step was taken when the MAPFRE innovation model was articulated to consider the proven internal strategic capabilities and digitalization of models and solutions for clients. An open relationship model was also set up that connects with external agents and the innovation ecosystem (technology-based startups and other players in the market that are capable of offering disruptive solutions at some link in the insurance value chain - insurtechs). This is why it is called MAPFRE Open Innovation.

In 2019, concrete steps were taken to accelerate the transformation in MAPFRE and strengthen its leadership position, adapting more swiftly and moving toward new business models and innovative solutions that arise from the digital and technological changes that are taking place, with the ultimate goal of offering the best solutions and services to clients.

The evolution of MAPFRE Open Innovation in such a short time has achieved excellent results in each of its elements.

CESVIMAP, MAPFRE's Road Safety and Experimentation Center, which is a global benchmark technology center for the design, safety, use, maintenance, repair and recycling of vehicles and other mobility solutions. It focuses its technological research

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

117

on the reduction of the accident rate and the definition of more efficient repair processes, reducing the cost and environmental impact of same, and is MAPFRE's research laboratory in new products and services focusing on Usage-Based Insurance (UBI) and Advanced Driver Assistance Systems (ADAS) in combination with crash test or traffic accident reconstruction, etc. It plays an important role in the development of MAPFRE's value proposition regarding automobile insurance and new mobility business.

Disruptive Innovation, which represents the closest link to the insurtech ecosystem, focuses on three pillars: the insur_space accelerator, which facilitates direct interaction with selected startups that are relevant for MAPFRE; venture capital stakes that allow for a broader knowledge of disruptive innovation in insurtech, as well as being in a favorable position during its success; and finally agreements with universities and research centers that facilitate access to talent and knowledge.

Strategic innovation, where the value proposition focuses on achieving the short-term business challenges and objectives identified in the strategic plans and driving the business of countries, units and corporate areas with measurable objectives. It has a transversal vision and vocation, keeping different types of clients at the center of the entire life cycle of projects.

Of the relevant actions taken in 2019, the following are highlighted:

Launch of two calls for insur_space, with the participation of various startups in its two programs: Acceleration and Adoption.
• MAPFRE's participation as an anchor investor in the venture capital fund "Alma Mundi Insurtech Fund, FCRE," which focused exclusively on the insurtech space and has taken part in seven startups in the industry.
· Consolidation of #innova, MAPFRE's intrapreneurship program, the second edition of which ended with 25 percent of employees invited from LATAM-Caribbean countries taking part in face-to-face ideation workshops.
Decontamination by CESVIMAP of a total of 2,556 vehicles in the year, with more than 71,000 parts removed which generated a saving in CO2 emissions due to the second life of these parts totaling 50,260 metric tons.

For another year, MAPFRE has reinforced its strategic vision and client orientation with an open innovation model that positions the Group before the market to face the challenges and changes of the insurance industry.

The English version is a translation of the original in Spanish for information purposes only. In asse of discrepancy, the Spanish version shall prevail.

Car

CYBERSECURITY

[GRI 418-1; L.11/2018]

In the current context, in which companies and individuals are increasingly dependent on information and communications systems, the issue of technological disruption is ever present, which impacts on a large part of the areas that make up our community. MAPFRE views cybersecurity as a key factor and a priority, and has identified that the following are in critical need of protection:

Information regarding third parties (clients, employees and other stakeholders) that is provided by them so that MAPFE can satisfy their requirements and so that they can be provided with the services they purchase as and when needed
The information owned by MAPFRE that gives it a competitive advantage and/or contributes to brand value
· The technological systems and the information that support the company's business processes

In order to achieve the foregoing, MAPFRE has in place a series of strategic lines that are articulated through cybersecurity and which are intended to contribute to the sustainability and resilience of operations:

Protection against cyber risks	· Evaluation and improvement of prevention, detection and response mechanisms against cyber attacks, including those that may occur in cloud computing environments. · Continuous development of information systems and communication networks protection mechanisms. · Evaluation and improvement of disaster recovery mechanisms.
Proactive Privacy	· Timely conformity with privacy regulations applicable in the different areas where we operate. · Centralization and concentration of capacities at the Corporate Office for Privacy and Data Protection (OCPPD).
Culture of cybersecurity and privacy	· Activities to raise the awareness of employees, clients and other stakeholders. · Educational and training activities for employees and agents. · Promotion of the attainment of recognized certifications in terms of security, privacy and data protection.
Cybersecurity and privacy from the start	· Integrating cybersecurity and privacy in the life cycle of new initiatives of the company, guaranteeing protection by design and default, including analyzing the impact on privacy of new procedures and the corresponding implementation of controls and measures. · Evaluation of cybersecurity and privacy in processes covering the procurement of technology solutions and the contracting of technology services.

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

The lines of action include the protection of information when gathered, transmitted, stored or processed that makes it possible to exercise diligence when establishing preventive measures and detecting and responding to cyber attacks or business interruption incidents.

They also include mechanisms intended to provide early identification and to monitor and respond to essential external factors that may necessitate modification in the protection needs of various assets:

· Cyber threats, with increasingly lower barriers for hackers and the more common appearance of systemic vulnerabilities and/or "zero-day" and advanced attacks.
Regulatory or legislative changes, such as the Brazilian Data Protection Law or new security, privacy or data protection laws in the various countries in which MAPFRE operates, as well as the growing demand and requirements of large clients that MAPFRE services, with respect to protecting information in general and clients' personal data in particular.
· Business initiatives associated with the need for agility and the use of new technological trends involved in the digital transformation of companies.

In addition to the above, the MAPFRE Group has specific insurance protection for cyber risks, in order to reduce the economic impact of a potential cyber incident.

Furthermore, MAPFRE makes use of its cybersecurity capacities to generate added value in business terms through efforts such as process digitalization, harnessing the capabilities of electronic signatures, the fight against fraud or the defining and underwriting of cyber-risk products.

To carry out its strategy in this area, MAPFRE, through the Corporate Security and Environment Division, has advanced capabilities aimed at increasing the "cyberresilience" of the company. These capacities include:

· Highly specialized and accredited personnel (176 personal certifications in cybersecurity and privacy, with a total of 74 certified employees), in charge of identifying, defining, designing and, where appropriate, implementing and operating both the various security controls and technological tools designed to protect the company's digital assets; as well as incorporating cybersecurity requirements, controls and functionalities (including privacy) into the company's new initiatives.
· Specific monitoring, detection and protection technologies covering security incidents that have been integrated into the corporate technology platform.

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

• Tools, methodologies and specialists continually reviewing and evaluating the level of cybersecurity, covering all assets and participants involved (information systems, people, etc.) and identifying deficiencies and absences of control in a timely manner.
A General Control Center (CCG-CERT), integrated into the FIRST network and the CSIRT.es group, which receives alerts of global threats and attacks for 24/7 monitoring both of the information contained in the technology platform operated by MAPFRE as well as the information that it owns that is accessible via third-party systems, acting as a global SOC and thereby enabling the early detection of any cyber incidents and providing an swift response to them. The CCG-CERT is certified in ISO 9001 and ISO 27001 standards.
Incident and crisis situation response plans, which are subject to constant and systematic updating. In this area, three cyber incident management drills with different scopes have been carried out, ranging from global and corporate, involving the main corporate areas, to more technical drills, aimed at verifying the effectiveness of technologies, tools and internal procedures.

Specifically, in relation to protecting the privacy of the data entrusted to it by clients and other stakeholders, MAPFRE has a Corporate Data Protection and Privacy Committee, a Corporate Data Protection Officer and a specific area within the Corporate Security Office responsible for ensuring compliance with existing regulations regarding privacy and personal data protection. In this area, throughout 2019 we have worked on:

The automation and optimization of the processes associated with compliance with the European Data Protection Regulation.
· Timely compliance with the Brazilian Data Protection Act (LGPD).
· The adaptation to specific cybersecurity regulations in Colombia.
Consolidation of the Corporate Office for Privacy and Data Protection (OCPPD), whose mission is to be the point of reference for all activities relating to privacy and data protection in the MAPFRE Group, providing a single comprehensive view of the subject, encouraging uniformity in all processes and criteria relating to this area and improving its efficiency.

Throughout 2019, three security incidents were reported to the Control Authority in compliance with the provisions of the General Data Protection Regulation (GDPR).

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

MAPFRE's stance on the subject of cybersecurity is integrated within the corporate security model, based on risk management and the comprehensive protection of tangible and intangible assets, via the establishment of measures linked to the value of these assets and also to all those elements that interact with same (people, information systems, facilities and processes).

BRAND AND REPUTATION

In today's society, in an environment of excessive supply where standing out from the crowd is not only essential but increasingly difficult, intangibles are becoming more important and are a competitive advantage for companies. The brand must therefore be a true reflection of the company it represents. At MAPFRE, brand positioning is defined based on the business strategy, its vision and its corporate values.

According to MAPFRE's vision, trust is the most important aspect, but it must also have substance. Credible content that brings value to the company, with a general approach, but which can be adapted to the local characteristics of each market. Therefore, content is being designed by listening to the client, through advertising, communication and sponsorship. An example of this is the various activities carried out around corporate sponsorships such as Rafael Nadal or the F-1 Renault team. Through all the actions carried out, the aim is to increase visibility, i.e. the knowledge of the brand in each market, and its recognition and appreciation.

MAPFRE is the ninth most valuable brand in Spain and the leader in the insurance industry in 2019, according to the international consultancy firm Brand Finance. It was selected as the most successful and most reputable insurance brand in Spain by the Advice Strategic Consultant economic consultancy firm. In addition, according to BranZ España, MAPFRE was the most valuable Spanish insurance brand in its 2019 ranking, and ranked 18 in the overall ranking with a value of 737 million euros.

Since the brand image is how a company manifests itself, and reputation is how it is perceived, MAPFRE is aware of the importance of maintaining a good reputation among its stakeholders, since it is a key intangible element in the development and existence of companies.

In 2019, the new corporate reputation measurement model, created specifically for MAPFRE, was consolidated. This model, which was implemented in several countries, includes the strategic indicator of reputational relevance, which reflects MAPFRE's reputation among its clients, employees and the general public, major stakeholders for the company. The results in 2019 place MAPFRE with a good reputation, which is synonymous with trust and respect. In addition, it also allows society's perception of the main brand attributes of MAPFRE to be measured.

The English version is a translation of the original in Spanish for information purposes only. In ease of discrepancy, the Spanish version shall preval.

In 2019, MAPFRE in Spain was included in the ten companies with the best reputation, and was ranked first in the insurance industry, on the Business Corporate Reputation Monitor (MERCO). In Argentina, Ecuador, Mexico, Panama, Peru, Portugal and Uruguay the company is ranked among the 100 best companies. MAPFRE in Spain held tenth position in the Merco Talent ranking, and once again led the insurance sector, while in Peru and Argentina it remained one of the 100 best-rated companies.

MAPFRE was recognized as Best Workplace in 2019 in Costa Rica, Ecuador, El Salvador, Spain, Guatemala, Honduras, Mexico, Panama, Peru, the Dominican Republic and Turkey and, in general, in Latin and Central America and the Caribbean.

Lastly, it should be noted that MAPFRE belongs to Corporate Excellence, a platform composed of a relevant group of multinationals working to promote and measure corporate branding and reputation management as strategic values for companies. This enables us to share best practices and to discover the latest trends in this field.

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall preval.

Código seguro de verificación (CSV): xIvfjCSHJswnKZUFv5fe COPIA ELECTRÓNICA Esta es una copia auténtica imprimible de un documento electionico archivado por la CNMV, según el atículo 27.3 c) de octubre. Su autenticidad puede ser contrastada a través de la siguiente dirección: https://sede.cnmv.libreAcceso/CSV.aspx

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NATURAL DIMENSION 6.5.

we are The

We do business in such a way that respects the environment. We take care of the environment and minimize our environmental footprint. We have an action strategy against climate change in place and we promote environmental culture.

What are we working on to create value?

· Environmental strategy model
Climate change action strategy

Link to MAPFRE's priority SDGs:
	11. Sustainable Cities and Communities
3. Good Health and Well-being	13. Climate Action
8. Decent Work and Economic growth
9. Industry, Innovation and Infrastructure	17. Partnerships to achieve the Goal

As a company, we are aware that environmental topics, such as climate change, have an impact on people, their environment and their quality of life and that everyone has the right to enjoy an adequate and healthy environment. Therefore, MAPFRE is firmly committed to climate action, strategically addressing the reduction of its carbon footprint, efficient management of its resources, protection of biodiversity, social and environmental awareness, as well as the integration of environmental, social and governance aspects in its business.

The Group's Sustainability Plan 2019-2021 incorporates the three dimensions of Sustainability (environmental, social and governance). In terms of the environmental dimension, the plan focuses on climate change, the circular economy and the integration of environmental, social and governance aspects, as a risk and as an opportunity in the business, and the United Nations 2030 Agenda. (See section 5. Risks and opportunities, and 6.6. Social dimension)

ENVIRONMENTAL STRATEGY MODEL

[GRI 102-11, FS1, FS3, FS4, FS9, L.11/2018]

MAPFRE has an Environmental Policy in place that was approved by the Board of Directors of MAPFRE S.A. on December 13, 2018, which is implemented in all Group companies. It also has an integrated management model called SIGMAYE, in which risks are identified and specific action plans are defined to prevent and minimize the impact

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

of the company on the environment, thereby complying with the principle of precaution.

Structure of the corporate environmental management model:

SIGMAYE is an integrated management system that incorporates environmental, energy and carbon footprint management. In 2019 it was considered necessary to incorporate the circular economy and natural capital into this current system, which will result in the new SIGMAYEc3, operational from 2020.

This comprehensive system includes the reference standards ISO 14001, ISO 50001, ISO 14064 and, throughout 2020, the AENOR Zero Waste regulation will be included, increasing the effectiveness and efficiency of the strategic model in the detection and minimization of risks and in the identification of opportunities for continuous improvement.

In addition, the system can define plans and programs for each of the Group's companies in the short-, medium- and long-term, taking as a baseline the control of legal requirements, the optimization of resources (water, energy, raw materials), the minimization of the environmental footprint, zero waste, the identification of environmental risks and opportunities for the organization, sustainable mobility, the promotion of low carbon products and services, as well as the generation of value in the supply chain.

The soundness of the management system, and its evolution in recent years, is a guarantee for success. This is because its transversal design allows for the environmental management of corporate processes in a coordinated and transparent manner, ensuring evolution in the process of continuous improvement and reaching all activities carried out by the Group in the countries where it operates.

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

Código seguro de verificación (CSV): xIvfjCSHJswnKZUFv5fe COPIA ELECTRÓNICA Esta es una copia auténtica imprimible de un documento electrónico archivado por la CNMV, según el artículo 27.3 c) de octubre. Su autenticidad puede ser contrastada a través de la siguiente dirección: https://sede.cnmv.gob.es/sedecnmy/LibreAcceso/CSV.aspx

MAPFRE's strategy is based on transparency and trust toward different stakeholders, so all actions in this area are verified annually by accredited third parties according to the main baseline standards.

The degree of progress in implementation of the system, as well as future development objectives, is shown below.

DEGREE OF PROGRESS OF SIGMAYE AND FUTURE OBJECTIVES

The integrated system is the common framework for managing all aspects associated with environmental sustainability, including energy and greenhouse gas emissions.

In line with this system, the new corporate Environmental Footprint Plan 2020-2030, which will lead on from the current corporate Energy Efficiency and Climate Change Plan 2014-2020, was established in 2019.

The new plan will cover strategic lines related to aspects such as water, energy, greenhouse gas emissions, the circular economy, green purchasing, construction and sustainable mobility, and will take on the main actions and commitments of the MAPFRE Group.

The English version is a translation of the original in Spanish for information purposes only. In Case of discrepancy, the Spanish version shall prevail.

This Plan will establish new reduction objectives aimed at minimizing environmental, energy and carbon footprint impacts, as well as contributing to the Sustainable Development Goals.

In addition, the corporate Environmental Footprint Plan 2020-2030 will be aligned with the Sustainability Plan of the MAPFRE Group 2019-2021 in environmental matters.

Environmental performance of the MAPFRE Group

The following are the most relevant milestones achieved in 2019 arising from environmental plans, aimed at minimizing environmental impacts, energy impacts and the carbon footprint.

Energy Efficiency and Climate Change Strategic Plan

Energy:
- √ 1,258,148 kWh of savings thanks to the CoolBiz campaign in Spain.
- √ 926,339 kWh of savings in electricity consumption at the Corporate Headquarters (Majadahonda and Aravaca) through the implementation of energy efficiency measures in 2019
- 20 countries became members of Earth Hour
Emissions:
- ✔ Annual General Meeting 2019: carbon neutral event for the offsetting of 107 TmCO2eq through a certified emission reduction project in Chile.
· Sustainable mobility:
- √ 46 hybrid and electric cranes are part of the provider network.
Sustainable construction:
- ✔ 12 international offices with sustainable construction certification.
· Responsible consumption and green purchasing:
- √ Reduction of paper consumption by biometric electronic signature, avoiding the emission of 142.27 TmCO2eq in Spain and Portugal.
- 67.58 percent green-certified paper consumption.

Environmental Expansion Plan:

Water:
- ✔ 68 percent savings in water consumption in car repair shops in Spain due to the implementation of best practices.
- √ Saving of 7,238 m³ in the consumption of the Headquarters Building in Mexico through the installation of water recovery equipment (57 percent of consumption of the installation).
· Training and awareness-raising:

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

V Participation of 2,300 volunteers from 25 countries in the Global Environmental Volunteering Day. Planting of 1,800 trees and collection of 14 tons of garbage.
V On the occasion of World Environment Day, MAPFRE BRAZIL offset the carbon footprint of 50 employees (530 TmCO2eq). The carbon credits have been invested in the Ecomapuá project, which, in addition to conserving the biodiversity of the Amazon, collaborates with local communities to contribute to the sustainable development of the region.
✔ For the fifth consecutive year, collaboration with the NGO WWF Spain, with participating employees choosing the species and habitat to protect, namely the tiger. In addition, MAPFRE collaborates at the local level with other organizations in the preservation of biodiversity: Funzel (El Salvador), Bird Life and Nature Trust (Malta), and Para la Naturaleza (Puerto Rico).
For the third year, contribution in the "100 Companies for Forests" initiative for the reforestation of three hectares in the Doñana National Park.
V Environmental training for 2,495 employees in 2019.

Resource Management and Optimization Plan:

· Circular economy:
- ✔ The MAPFRE Sin Plástico pledge, which meant that generation of 25.8 tons of plastic waste was avoided, along with the emission of 104 TmCO₂eq into the atmosphere.
- V Installation of collection points for used clothing and glasses at Corporate Headquarters (Majadahonda, Madrid).
- ✔ Handling of 2,556 out-of-use vehicles, from which a total of 73,544 parts and components were recovered for reuse in Spain.
- ✔ Donation of 1,447 pieces of office equipment and internal reuse of 225 units in Spain.

The milestones included in the Energy Efficiency and Climate Change Strategic Plan 2014-2020 have allowed us to reach and largely exceed the expected objective of 20 percent, defined for 2020, achieving a reduction of 56 percent in the footprint up to 2019.

For more information about the environmental performance indicators, see Note 6 in the Annex to this document.

CLIMATE CHANGE ACTION STRATEGY

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall preval.

[GRI 201-2, 305-5, FS2, FS5, L.11/2018]

Climate change is one of the great challenges of our time, and the term "climate emergency" has recently been coined to reflect both its magnitude and the need to act urgently on adaptation and mitigation. The scientific consensus puts us at a decisive moment if we want to avoid irreversible changes in important ecosystems and the planet's climate system.

With the objective of being an active player in this necessary and urgent transformation, MAPFRE defines its strategy to combat climate change through the following levers:

· Decreasing the group's environmental footprint through the rigorous measurement of its environmental footprint and the establishment of ambitious objectives for emission reductions and carbon neutrality.
· Integration of the climate change variable within the business, by incorporating the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) in financial planning, as well as including environmental, social and governance (ESG) aspects in both investment and underwriting and defining low carbon products.
· Promotion of the circular economy, minimizing the generation of waste from activity and positioning the company as an agent of change in the transition to this type of economy, by promoting products and services and supporting companies specialized in the sector.
· Preservation of biodiversity, raising awareness and supporting initiatives to protect ecosystems that are more sensitive to the effects of climate change.

Decreasing the Group's environmental footprint

Contributing to decreasing greenhouse gas (GHG) emissions generated by the organization in its business is a key element of its actions concerning environmental responsibility.

In 2014, MAPFRE launched its Energy Efficiency and Climate Change Strategic Plan, with a time frame to 2020, calling for a 20-percent reduction in tons of CO2e compared to the Group's 2013 carbon footprint (9,924 MtCO2eq; 14,710,519 kWh; ranges 1 + 2 + 3). This plan meant an annual reduction rate of the carbon footprint of 2.8 percent.

The lines of action taken during these six years have meant that the Group's tons of CO2eq (27,803 TmCO2eq) have been reduced by 56 percent since 2013. The annual global carbon footprint reduction rate has been 9 percent, almost three times higher than planned, and 2 points higher than the new requirements identified by the Intergovernmental Panel on Climate Change (IPCC).

Evolution of MAPFRE Group carbon footprint associated with the Energy Efficiency and Climate Change Strategic Plan 2014-2020*.

The English version is a translation of the original in information purposes only. In case of discrepancy, the Spanish version shall prevail.

(*) Baseline scope 2013: countries included: Spain, Argentina, Brazil, Chile, Colombia, USA, Mexico, Puerto Rico and Turkey. Categories included: Scope 1 (natural gas, building diesel, fuel for company vehicles); Scope 2 (electricity); Scope 3 (paper consumption, emissions avoided due to recycling paper and company travel).

In 2019, MAPFRE set new and ambitious targets for minimizing its global environmental footprint:

In the medium- and long-term, MAPFRE is committed to being a carbon-neutral company by 2030.5
· In the short-term, MAPFRE will accelerate the decarbonization of the Group's activities by neutralizing the Group's Iberia territorial area up to 2021. 6

Both objectives are part of the company's Sustainability Plan 2019-2021 (referenced on page 49) and are being implemented through the current Energy Efficiency and Climate Change Plan.

Integration of the climate change variable within the business

6 Emissions corresponding to the activity carried out in Spain and Portugal (MAPFRE IBERIA). Using 2017 emissions as a baseline: 38,574 TmCO2eq (61 percent of the Group's emissions).

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

⁵ Emissions correspond to the activity carried out by the MAPFRE Group in 26 countries using 2017 emissions as a baseline: 62,920.59 TmCO2eq.

The adaptation of the company's financial planning to climate change, both from a risk and an opportunity approach, will be implemented according to the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) set up by the Financial Stability Board (FSB). For this reason, MAPFRE, along with other global insurers and reinsurers, is part of the UNEP-FI Working Group. The main objective of this group is to analyze scenarios that allow metrics and financial models to be developed to adequately estimate the possible implications of climate change on business.

For more information on how the company has begun implementing the TCFD's recommendations, see paragraph 5, Risks and opportunities.

MAPFRE is part of the Carbon Footprinting Working Group, promoted by the CRO Forum. The objective of the Working Group is to define a methodology for calculating the carbon footprint of the risks underwritten by insurance and reinsurance companies that can serve as a standard for the industry.

MAPFRE demonstrates its commitment through the creation and promotion of products and services with environmental content. For more information, see Note 7 of this Report.

Since March 2019, the company has not invested in electricity companies with more than 30 percent of their revenues coming from coal, and has ceased to insure the construction of new coal thermal plants or mines for extracting this mineral. (See paragraph 5, Risks and opportunities.)

Promotion of the circular economy

The transition to a circular economy is one of the main global challenges to streamlining the use and consumption of natural resources, which will contribute to reducing the environmental impact of economic activity.

MAPFRE has included a specific line of work in the Sustainability Plan 2019-2021 and has created an internal working group on the circular economy, to address this issue both from an internal and a business perspective.

From the perspective of internal management, MAPFRE focuses its priorities on the use of sustainable materials, the promotion of responsible consumption and the proper management of waste. Of particular note in this regard is the recovery of waste generated for its transformation into raw material, which can be returned to production cycles, thereby avoiding the consumption of natural resources, and the recovery of outof-use vehicles that is carried out in CESVI RECAMBIOS.

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

For 2021, MAPFRE has set itself the objective of certifying the company's registered office under the AENOR Zero Waste standard, which includes actions to combat food waste, despite this not being a significant issue for MAPFRE. For this reason, the need to integrate this regulation into the company's integrated management system (new SIGMAYEc3) has been identified.

Biodiversity preservation

[GRI 304-1, FS4, L.11/2018]

Although MAPFRE work centers are not located in protected or cataloged spaces of high diversity, the development of the business depends directly on natural capital, which includes both biodiversity and the services provided by ecosystems, as well as natural resources (water, energy, fuels, etc.). Therefore, there is also an indirect dependence on natural capital, through the activities insured and those in which the group invests.

MAPFRE believes that biological diversity is of common interest to humanity, given its importance for life on the planet, social well-being and economic development, and even more so in a context of climatic emergency in which the planet's ecosystems and climate system face irreversible changes with the consequent extinction of species.

Since 2014, the Group's Environmental Policy includes among its commitments the preservation of biodiversity, and in 2015 MAPFRE joined the Pact for Biodiversity of the Spanish Business and Biodiversity Initiative, under the slogan "Without biological diversity there is no economic diversity."

The Group's commitment to the conservation and sustainable use of natural capital, specifically with biological diversity, translates into the development of actions that are integrated into actions developed to manage climate change and that are contained in the Energy Efficiency and Climate Change Plan 2014-2020.

The English version is a translation of the original in Spanish for information purposes only. In espanish version shall prevail.

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6.6. SOCIAL AND RELATIONAL DIMENSION

We are sustainable and we undertake the challenges presented by WE ARE COMMITMENT | the United Nations 2030 Agenda with the involvement of our stakeholders.

What are we working on to create value?

Management of the relationship with stakeholders: .
- Stakeholders o
- Stakeholder relationship channels O
Human Rights and United Nations 2030 Agenda

MANAGEMENT OF THE RELATIONSHIP WITH STAKEHOLDERS

[GRI 102-40, 102-42, 102-43, 102-44, 103-1, 103-2; L.11/2018]

Stakeholders

MAPFRE's strategy with the various stakeholders has already been covered in the very definition of its mission and vision, the objective being to create long-term trust relationships based on commitment and dialog and developed from integrity, responsibility and transparency, thereby contributing to the creation of a sustainable value model pursued by the Group.

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

Código seguro de verificación (CSV): xIvfjCSHJswnKZUFv5fe COPIA ELECTRÓNICA Esta es una copia auténtica imprimible de un documento electrónico archivado por la CNMV, según el artículo 27.3 c) de octubre. Su autenticidad puede ser contrastada a través de la siguiente dirección: https://sede.cnmv.libreAcceso/CSV.aspx

Stakeholder map

Relationship channels

[GRI 102-43, 102-44, 407-1; L.11/2018]

Management of relationships with stakeholders involves multiple factors, including having adequate relationship channels available. A summary of some of the relevant communication channels that MAPFRE has established with stakeholders included in the companies mission are as follows.

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

creation of shared Value: We ARE SUSTAINABLE

Among the initiatives developed in 2019 to improve relationships with shareholders and investors, the following are noteworthy:

The Investor Day in March, attended by some 60 investors, analysts and finance experts.
· Within the framework of "MAPFRE Shareholders, A Unique Value" plan, meetings were held during the year in Madrid and Barcelona to explain to shareholders the business' performance and to answer their questions and listen to their comments.

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall preval.

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· In collaboration with Club MAPFRE, the MAPFRE Te Cuidamos Accionista customer loyalty plan continues apace, which allows shareholders owing at least 1,000 shares to benefit from the advantages of this program.
Quarterly publication of the infographic and interactive newsletter on the website with up-to-date information on MAPFRE, results and main corporate news.
· The "Shareholders and Investors" section of the website has been restructured to improve access to financial information, with the creation of a financial documentation center, as well as a repository of historical documentation.

Summary of the communication activity with shareholders and Summary of the communication activities conducted investors in 2019:

Relationship channels	No. of Interactions
The shareholder telephone service (toll- free Number 900 10 35 33)	1,009 queries
Mailbox enabled on corporate website, as addresses well email ਬੰਦ [email protected] and [email protected]	724 contacts
The electronic shareholders' forum	310 visits 223 unique visits

with capital markets in 2019:

Relationship channels	No. of activities conducted	No. of participants
Investor Day	1	60
and Conferences face-to-face with meetings investors	42	101
Telephone meetings with investors	31	42
Face-to-face with meetings analysts	7	14
meetings Telephone with analysts	100	118
with Meetings shareholders	4	121
TOTAL	185	546

Relationship channels with insured parties and clients.

The English version is a translation of the original in Spanish for information purposes only. In Case of discrepancy, the Spanish version shall prevail.

Código seguro de verificación (CSV): xIvfjCSHJswnKZUFv5fe COPIA ELECTRÓNICA Esta es una copia auténtica imprimible de un documento electrónico archivado por la CNMV, según el artículo 27.3 c) de octubre. Su autenticidad puede ser contrastada a través de la siguiente dirección: https://sede.cnmv/LibreAcceso/CSV.aspx

Identifying and understanding client needs is one of the MAPFRE strategic pillars. This is why communication channels are made available to stakeholders, including:

· The network of offices for face-to-face and personal services for our clients and policyholders:
- 0 5,110 own-use offices (direct and delegate)
- o 7,914 bancassurance offices
- o More than 79,000 delegates, agents and brokers
· 56 contact centers worldwide.
· The MAPFRE Portal and the MAPFRE Internet Office, both the web version and the cellphone App are digital tools through which they can consult and manage personal data and contracts, submit and manage claims, request and provide documentation, request contact, etc.
· The grievances and complaints channel which can be accessed via web/email, postal address and by using forms available at the offices.
· In Spain, clients can consult and download information from the website information on insurance, which gives them peace of mind at the time they are researching and buying.

Relationship channels for employees and their representatives:

[GRI 102-41,402-1, 403-1, 407-1; L.11/2018]

Employee relationship channels: MAPFRE maintains a permanent and direct dialog with employees, reporting information on all relevant developments, listening to their opinions and requesting their active participation through different channels such as:
- · The Corporate Intranet, where, in addition to all the news related to the Group and the business, there are contact mailboxes, blogs, forums, opinion spaces and the virtual assistant @Ane, which responds to employee queries and helps them use the different resources and features that the Intranet offers.
- · The twice-yearly eNPS® survey (Employee Net Promoter Score), and the Employee Satisfaction Index (ESI), which provide insight into the extent to which employees recommend the company, as well as their level of satisfaction and commitment to the company.
- · The materiality survey, which seeks to understand the sustainability-related issues that they consider important.
- · The HR perceived quality survey that assesses the service that the Human Resources areas provide to employees.

The English version is a translation of the original in Spanish for information purposes only. In espanish version shall prevail.

Employee representative relationship channels: 53.7 percent of the workforce are represented by legal representatives. Please note that in countries such as Venezuela, Uruguay, Greece, Spain and Italy, 100 percent of the MAPFRE workforce are represented in this way.

Since collective bargaining is not structured in the same way in every country, MAPFRE does not have a collective agreement applicable across several countries as it does not meet the legal or social conditions or the conditions regarding the type of business or sector that would enable the implementation of this. For this reason, in MAPFRE there are 20,005 employees covered by collective agreements in 11 countries (Argentina, Belgium, Brazil, Spain, Greece, Italy, Malta, Peru, Portugal, Uruguay and Venezuela).

However, the coverage by collective agreement that MAPFRE has in the countries indicated below is notable -- a high percentage of the workforce are covered by a collective agreement.

	年後期間為期間為和使用於
Belgium	52.38
Argentina	76.03
Brazil	51.65
Spain	100
Greece	100
Italy	100
Portugal	87.77
Uruguay	100
Venezuela	100
Malta	34.59

The relationship between the company and the employees' legal representatives is fostered through the following channels:

· Company participation bodies with the employees' legal representatives and formal committees.
· Periodic meetings agreed by both parties.
· Direct contact via phone or email.

Similarly, employees' legal representatives communicate with employees through specific email accounts or Intranet spaces, visits to work centers and meeting or assembly spaces that the company makes available for communication and dialog with employees.

The English version is a translation of the original in Spanish for information purposes only. In espanish version shall prevail.

In 2019, the main collective bargaining agreements reached with the employees' legal representatives were (i) in Spain, the 2018-2021 Equality Plan, logging in and out, the Cajamurcia conditions agreement, the Caja Granada conditions agreement, the SAU Operations integration agreement and the Life Operations integration agreement.

MAPFRE has drafted a policy proposal on digital disconnection which is currently in a consultation phase with the workers' legal representatives in Spain.

Distributor relationship channels:

In order to develop the best relationship with distributors, various specific channels are available, including:

· Online tools that streamline and facilitate processes and sales activities.
· Broker portals with resources and features that promote sales activity.
· Meetings and video conferences.

Provider relationship channels:

In order to strengthen relationships and communication with providers, several specific channels are available, including:

Web platforms and specific portals, such as the Corporate Procurement platform and the provider relationship management platform, Sygris.
Provider and work group supervisors that manage the relationship with them.
Specific newsletters. ●

Institutional Supervisors and Regulatory Bodies

[GRI 102-12, 102-13; L.11/2018]

Relationships with governments and authorities

MAPFRE conducts its business activities in full compliance with current legislation and respects the regulatory bodies and all authorities in the countries in which it operates, adopting a neutral political stance.

In addition to strictly complying with all laws and contracts and obligations arising therefrom, MAPFRE adheres to the principles of ethical, transparent and socially committed action, in recognition of the function and responsibility of private companies in the proper development and progress of the communities in which they operate.

In 2019, MAPFRE formalized its registration in the European Union Transparency Register with the objective of promoting transparency and openness in interaction with

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall preval.

European Community institutions, enabling it to participate in the decision-making and public-policy-making process and ultimately contribute to boosting trust in public institutions.

Collaboration with industry and business organizations

MAPFRE collaborates and participates in business and industry organizations, helping it to obtain a more comprehensive and global view of the environment in which the insurance industry operates, its impacts, risks and opportunities, and the key factors in an increasingly complex and interconnected economic and social reality.

This collaboration with institutions allows for an orderly and inclusive dialog with certain stakeholders on topics that are material for all parties involved in the company's business. This generates more value by building relationships with stakeholders in general, and with the regulatory authorities and bodies in particular.

To this end, MAPFRE promotes strict observance of the Group's Institutional Principles, values and Code of Ethics and Conduct, as well as the company's anti-corruption framework. In particular, the concept of integrity-understood as meaning the need to act in an ethical and socially responsible manner that generates long-term trust-is established as a core value in MAPFRE's institutional relationships.

There follows a list of the main business and industry associations, foundations, chambers of commerce, and other non-profit organizations through which the MAPFRE Group carries out its institutional activities:

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

The Spanish Chamber of Commerce
Spanish Confederation of Employers' Organizations (CEOE)
Spanish Association of Insurers and Reinsurers (UNESPA)
Foundation for Applied Economics Studies (FEDEA)
Cooperative Research among Insurance Institutions and Pension Funds (ICEA)
Spanish Association of Collective Investment Schemes and Pension Funds (INVERCO) Institute for the Development and Integration of Health (IDIS) Association of Self-employed Workers (ATA) Spanish Confederation of Young Entrepreneurs Associations (CEAJE)
		Business Council Alliance for Ibero-America (CEAPI)
		Ibero-American Business Foundation (FIE) Brazil-Spain Chamber Of Commerce

Spain-ASEAN Business Association (ASEMPEA)
Hispanic-Turkish Chamber of Commerce
Federação Nacional de Capitalização (FENACAP)
Federação Nacional de Previdência Privado e Vida (FENAPREVI)	BRAZIL
Federação Nacional das Ressure Companies (FENABER)
Federação Nacional de Seguros Gerais (FENSEG)
Mexican Insurance Institution Association (AMIS)	MEXICO
Massachusetts Insurance Federation Inc.
Ohio Insurance Institute	UNITED
Insurance Association Of Connecticut	STATES
American Property Casualty Insurance Association
Puerto Rico Association of Insurance Companies	PUERTO RICO
Puerto Rico Chamber of Commerce
Insurance Association of Turkey - TSB
Istanbul Ticaret Odasi (Istanbul Chamber Of Commerce)	TURKEY
Associazione Nazionale fra Le Imprese Assicuratrici	ITALY
Gesamtverband Der Deutschen Versicherungswirtschaft (German Insurance Association)
Industrie - und Handelskammertag (Chamber of Commerce and Industry)

Additionally, MAPFRE is a partner of the following industry organizations at European and global levels:

Institute of International Finance
CRO Forum
Pan-European Insurance Forum
The Geneva Association
European Financial Services Roundtable
International Insurance Society
Global Reinsurance Forum
The European Insurance CFO Forum

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall previl.

Spending on contributions to the aforementioned industry and institutional entities was approximately 2.93 million euros in 2019.

Relationship channels relevant to all stakeholders: presence on social networks.

MAPFRE has a social network community of 2,550,532 users, 8 percent more than the previous year. In 2019, over 15,000 items were published on different social networks, and users interacted 27 million times with MAPFRE profiles. On Facebook alone, 1.1 billion users were reached, and content was viewed more than 1.37 billion times, generating an engagement rate of 1.16 percent.

	13.00
Followers	2,020,530	137,394	67,069	29,338	296,201	2,550,532
Posts	5,580	6,745	2,017	1,171		15,513
Interactions	15,900,728	151,342	128,211	11,019,272		27,199,553

* Interactions in each network have been used.

Success stories:

· Corporate bot: Has registered 5,590 interactions. Information for journalists is the most requested item, and specifically, press releases. The most consulted item within shareholder information was the share price.
· Rafa Nadal automated responses: This bot provides automatic responses with information on the matches that Rafa Nadal is playing. 16,000 mentions of 249 unique authors have been collected.
· An economic KPI has been developed to measure brand presence on social networks economically, which represents the investment that you would need to get the impressions that you have obtained. The economic value of MAPFRE's presence on Facebook is 3.3 million euros.

HUMAN RIGHTS AND THE UNITED NATIONS 2030 AGENDA

[GRI 406-1, 407-1, 408-1, 409-1, 410-1, 411-1, 412-2, 412-3, 413-1, 413-2, 414-1, 414-2, 415-1; L.11/2018]

Respect for human rights is present in each of the Sustainable Development Goals of 2030 Agenda. An agenda that is based on prosperity, the planet and people as essential axes for sustainable development.

MAPFRE's commitment to Human Rights:

The English version is a translation of the original in Spanish for information purposes only. In asse of discrepancy, the Spanish version shall preval.

The protection of human rights is linked to the internal regulations of the Group, adopted at the highest level of the organization, and is expressly contained in MAPFRE'S Institutional, Business and Organizational Principles, the Code of Ethics and Conduct and the Corporate Social Responsibility Policy. It is also strengthened through adherence to international reference initiatives to which MAPFRE belongs or expressly assumes as the UN Global Compact, Principles for Sustainability Insurance (PSI) and also in the United Nations Principles of Responsible Investment (PRI)

This implies that within its sphere of influence, it must act resolutely to defend the human rights contained in the "International Bill of Human Rights," and ensure that none of the companies in the group is responsible, either by action or omission, for any form of violation of these rights.

Similarly, in regard to the principles related more specifically with the protection of workers' rights, MAPFRE's adhesion to the Global Compact directly commits us to the respect, defense and protection of human rights in the conventions of the International Labor Organization (ILO) and the Declaration on Fundamental Principles and Rights at Work. To this end, MAPFRE, and the people in it who are tasked with ensuring that these obligations are strictly fulfilled, therefore undertakes to:

· Avoid practices that are discriminatory or harm people's dignity.
· Reject child labor and forced or compulsory labor.
· Respect its employees' freedom of union, association and collective bargaining and the role and responsibilities that apply to workers' representation in accordance with the current legislation in each country.
· Offer decent employment.
· Implement supervisory procedures that allow the detection, with due diligence, of any possible situations of risk of human rights violations, and the introduction of mechanisms to prevent and mitigate these risks.

MAPFRE does everything within its power to involve the stakeholders it relates to, especially employees and collaborators, clients, providers and business partners in this commitment.

Measures taken to ensure respect for Human Rights

MAPFRE has, among others, the following due diligence mechanisms in place that facilitate monitoring and evaluation of Human Rights matters within the company and in its relationship with third parties:

• Internal systems and procedures established to detect cases of corruption, prevent fraud and prevent money laundering. (See p. 51.)

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

· Specific internal mechanisms guaranteeing equality and non-discrimination in the workplace and in terms of personal development and pay, among others: comprehensive and standardized performance evaluation process, group-wide harassment protocol, equality plans (See Human dimension, pages 94.)
· With regard to occupational health and safety, the MAPFRE prevention model is participatory, makes use of legally established worker-representation channels and joint senior management/employee health and safety committees established to help control and advise on this matter. (See p. 109.)
In addition, MAPFRE has a healthy company model in place, in which the risk factors that statistically cause the most deaths, illness and suffering in the world are identified and tackled to reduce their impact on workers (See Note 5.)
· MAPFRE is in constant dialog with workers' legal representatives and encourages communication and dialog between them and employees, providing specific resources such as dedicated e-mail accounts or spaces on the Intranet, visits to work centers, and resources and spaces for meetings or assemblies. (See p. 136.)
· There is a Financial and Accounting Whistleblowing Channel open to employees, as well as different channels for lodging ethics-related complaints arising from noncompliance with the Code of Ethics and Conduct, which are available to employees and providers. (See p. 56.)
· MAPFR has specific provider-approval processes in operation that factor in criteria such as human rights, non-discrimination and compliance with environmental and labor laws.
• MAPFRE has specific channels and resources in place to protect clients' rights and managing their complaints. (See p. 56.)
· The impact self-assessment was first introduced in 2016; it is based on the Guide to Implementing the United Nations Guiding Principles on Business and Human Rights, drawn up by the Spanish Global Compact Network.
The issues covered in the materiality study are correlated with the rights recognized in the Universal Declaration of Human Rights (See p. 141.)
· Environmental, social and governance (ESG) risk analysis is conducted for both the business and sustainable investment. (See p. 70.)
· Materiality survey: based on 18 issues that are directly related to fundamental rights recognized in the International Charter of Human Rights. The survey has been conducted in 15 countries, and employees, providers, clients, distributors and experts have participated. MAPFRE considers the protection of Human Rights as material.

For more information, see Note 8 of the summary table on compliance with the principles of the Global Compact and MAPFRE due diligence measures.

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

MAPFRE maintains a permanent, open and honest dialog policy with its stakeholders, as well as any other groups that may be affected by the impact of the company's activity. In 2019, MAPFRE, as a company, did not receive any complaints regarding Human Rights violations.

MAPFRE assumes the task of awareness-raising and training in this field as part of its commitment and, since 2017, it has had in place a specific online course designed by the Spanish Network of the United Nations Global Compact to train employees and also the providers with which MAPFRE works. In 2019, more than 11,311 employees and 478 providers were trained, 403 of whom were security and surveillance providers representing 90 percent of trained suppliers.

United Nations 2030 Agenda. MAPFRE strategy in SDGs

Since the adoption of the United Nations 2030 Agenda in 2015, MAPFRE has included a specific line of work in its Sustainability plans, recognizing the importance of contributing to the largest global strategy for sustainable development.

Sustainability plan	Line of work	Target status

2016-2018	- Identification of the priority action - 100 percent met SDGs for MAPFRE. SDGs Map
	Dissemination and awareness of 2030 Agenda	- See MAPFRE 2018 Integrated Report, pages 134 to 148
	- Revision of SDGs map and - measurement indicators	Objective 2019-2020
2019-2021	- Dissemination and knowledge of 2030 - Permanent objective throughout the Agenda, internal (involving employees) and external (with other stakeholders).	plan period
	- MAPFRE's contribution report to the - Objective for 2021 SDGs.

Revision of SDGs map and measurement indicators

The 17 Sustainable Development Goals (SDGs), in addition to being interrelated, are dynamic goals that seek to evolve. Therefore, SDGs maps cannot be static, but must be periodically reviewed and aligned with the company's development.

In 2020, work will be completed to review the SDGs priority map for MAPFRE and its goals. This process began in 2019, in order to align, even more, MAPFRE's sustainability strategy with Agenda 2030.

The English version is a translation of the original in Spanish for information purposes only. In asse of discrepancy, the Spanish version shall prevail.

In order to carry out this review, the internal working group of SDGs, which is operational since 2017, has been advised by Newlink, experts in this field. In addition, MAPFRE, as a member of the Global Compact, also receives advice from the Spanish Global Compact Network.

MAPFRE's main milestones in its contribution to the SDGs

With a commitment to sustainable economic growth and the continued mobilization of economic and human resources, it contributes to improving the quality of people and their environment.
. As institutional investors, promoting economic development and from their SRI products, social impact investment is encouraged.
Insurance and reinsurance activity . contributes to the development and protection of companies and people, their assets and their savings.
· The diversity of the workforce is managed: functional, gender related, cultural and generational.
Inclusion is promoted from the . business, with facilities for access to insurance for people and groups with low income.
· A healthy business model that takes care of and promotes the health of employees in the professional and personal fields is in place, improving flexibility and work-life balance.
The health of clients and policyholders is protected through the different products and services on the market.
· Financial, technical and human resources are invested to provide new knowledge and develop the skills of employees.
The talent of the employees and at their availability is showcased; tools that facilitate the exchange of knowledge.
· Providers are involved and made aware of sustainable development actions.
Technological solutions are developed to get closer to MAPFRE clients and policyholders, while promoting constant connection.
· Innovative products and services are launched to meet the new needs of current and potential clients.

The English version is a translation of the original in Spanish for information purposes only. In ease of discrepancy, the Spanish version shall prevail.

• MAPFRE's commitment to the fight against climate change, efficient resource management, the circular economy and the protection of biodiversity is encouraged.
· Partnerships are promoted to facilitate the exchange of knowledge, information and the means necessary for the development of innovative and sustainable measures capable of meeting the new challenges.

Dissemination and awareness of 2030 Agenda

The current Sustainability Plan continues with the 2030 Agenda dissemination line to bring the SDGs closer to MAPFRE's stakeholders and society in general.

The materials of the COMPANIES4SDGs initiative, promoted by the Spanish United Nations Network, have been used with the aim of promoting the SDGs.

Below, the training activities that have been carried out this year are explained in detail:

The videos of the COMPANIES4SDGs initiative have been released through MAPFRE's YouTube channel, accompanying the various news related to the SDGs that have been published internally and externally on the same.
The 2019 table calendar has been fully devoted to the SDGs. The focus was promoting the origin and motivation of the 2030 Agenda. In addition, the pictures used were some of the photographs that won the creativity contest last year and which were based on the SDGs.
On a daily basis, information displays in various buildings and lifts in Majadahonda have broadcasted different content to make the SDGs known to employees and visitors.
Through the #COMparte platform, launched by the Spanish Network of the United Nations Global Compact, good practices related to the SDGs have been actively implemented.
· On the occasion of the fourth anniversary of the adoption of 2030 Agenda, MAPFRE has supported the #ODSeate and #AliadosdelosODS awareness campaigns promoted by the Spanish High Commissioner for 2030 Agenda and the Spanish Network of the United Nations Global Compact, respectively.
The World of MAPFRE magazine has included a specific report on sustainability and the SDGs, urging everyone to contribute to this objective.
· In the new eureka knowledge repository on the Corporate Intranet, a training capsule on 2030 Agenda, developed by the Spanish Global Compact Network, has been made available to all employees.

The English version is a translation of the original in Spanish for information purposes only. In asse of discrepancy, the Spanish version shall prevail.

· All providers that are part of the ESG approval project have an awareness-raising capsule on the Sustainable Development Goals, which includes access to the COMPANIES4SDGs campaign videos.
Taking advantage of the COP25, in which MAPFRE participated actively, an internal and external communication campaign was conducted, through which news, videos and other information content were disseminated to publicize all environmental SDGs and, in particular, SDG 13.

SDG contribution report.

MAPFRE reports its contribution to the SDGs annually by means of the Integrated Report under the heading "Our Footprint: Social Value, Shared Value". (See Annex, Note 9 of this document.) It also does so through the United Nations Global Compact Progress Report, which regularly reports on the impact and progress of this contribution. In order to carry out these reports, the criteria of the GRI standard are being taken into account.

In addition, MAPFRE has set the goal to publish a specific and detailed report that will facilitate the analysis and follow-up of its contribution to the SDGs by 2021.

For more information on MAPFRE's contribution to the SDGs see Note 9, Our Footprint: Social Value, Shared Value.

The English version is a translation of the original in Spanish for information purposes only. In asse of discrepancy, the Spanish version shall prevail.

148

CNMV Oficina: ROD MADRID Registro de Entrada Nº: 2020018771 Fecha de registro: 2020-02-12 01:18:30

7. ADDITIONAL INFORMATION

7.1. Basis of preparation and presentation of the Report

[GRI 102-11, 102-32, 102-45, 102-46, 102-48, 102-49, 102-50, 102-51, 102-53, 102-54, FS9; L.11/2018]

About this report

Integrated Report

This Report has been prepared in accordance with the Comprehensive option of the GRI Standards, the GRI financial sector endorsement (whose content index is attached as an Annex to this Report) and the recommendations of the information framework published by the International Council of the Integrated Report (IIRC).

Furthermore, the Report meets the reporting requirements established by Directive 2014/95/EU as regards the disclosure of non-financial and diversity information, as well as its respective transpositions in Spain (Law 11/2018 of December 28) and Italy (Legislative Decree No. 254/16 NFI). It also includes the information required from the Consolidated Non-Financial Information Statement, which forms part of the Consolidated Management Report of MAPFRE S.A.

The Consolidated Annual Accounts and Management Report have been taken into consideration, which is public information and may be consulted in full on MAPFRE's corporate website.

The Report offers a complete overview of MAPFRE, its deployment, business model, the challenges and risks faced, and its performance regarding social, environmental, economic and governance aspects. It constitutes a first approximation to the creation of financial and social value that has allowed progress to continue and to establish a better relationship between the business model and the effect on the resources referred to.

This report was analyzed by the company's Audit and Compliance Committee and drafted and ratified by the MAPFRE S.A. Board of Directors, at its meeting held on February 11, 2020.

Scope of information

The Integrated Report covers MAPFRE S.A. and its subsidiaries and investee companies, and has taken into consideration the scope of information established in the reports used as the basis for its preparation.

The Alternative Performance Measures (APMs) used in the Report, which refer to financial measures not defined or specified in the applicable financial reporting framework, can be found on our website at the following address: https://www.mapfre.com/corporate/institutional-investors/financial-information/

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall preval.

Some of the figures included in this Report have been rounded. Therefore, discrepancies may occur in the tables between the totals and the amounts listed due to this rounding.

Materiality, relevance and inclusiveness.

This Integrated Report includes all information pertinent to MAPFRE and its stakeholders. In 2019, a study was conducted in 15 countries to identify areas of greater interest for the company and its interest groups in terms of sustainability.

The relevant topics in the environmental, social and governance field are described in the material issues and information contained in this Integrated Report.

For more information, please see paragraph 7.2 of this document.

Furthermore, disclosures on certain issues are not included in this Report. They can be found in their entirety in:

· In section 7.3 "Notes" section of this same Report.
Consolidated Annual Accounts, Consolidated Management Report; (published on the corporate website at www.mapfre.com).
· Annual Report of Fundación MAPFRE. (Published on the website www.fundacionmapfre.org).
Annual Corporate Governance Report (published on the corporate website at www.mapfre.com).
Annual Report on Remuneration of Board Directors of listed companies (published on the corporate website at www.mapfre.com).
· MAPFRE People and Organization 2019 report www.mapfre.com.

Responsiveness

In addition to providing information that is of relevance to MAPFRE's stakeholders, the Report responds to the observations conveyed to the organization by these stakeholders throughout the course of the year. However, anyone interested in consulting or completing the information provided in this Report can contact MAPFRE by means of the following:

· The Group Sustainability Office: [email protected]
· The Corporate External Relations and Communication Area: [email protected]
· Environment Management: [email protected]
· Investor Relations: [email protected]
MAPFRE's corporate website: www.mapfre.com

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

External assurance:

The qualitative and quantitative data of the indicators respond to the new GRI standards and have been verified externally by the firm KPMG Asesores S.L., including the data submitted for the activities of MAPFRE ASISTENCIA, MAPFRE GLOBAL RISKS, MAPFRE RE and MAPFRE Seguros carried out in Germany, Brazil, Colombia, Spain, USA, Italy, Mexico, Peru and Turkey that together represent 91.20 percent of the Group's business volume.

In addition, a limited review of the data provided by the rest of the MAPFRE companies has been carried out.

Balance

The Report reflects positive aspects of the organization's performance, and when results fall short of initial expectations this under-performance is noted in the corresponding headings.

7.2. Materiality

[GRI 102-15, 102-21, 102-29, 102-31, 102-43, 102-44, 102-47, 102-49, 103-1, 103-2, 103-3, 412-1, FS5; L.11/2018]

For MAPFRE, materiality services a double function; firstly, it is a requirement for the preparation of annual reports and, secondly, it is a tool that contributes to the internal operation of sustainability management, specifically the alignment of material issues with the sustainability strategy and the Group's Sustainability Plan. The 2018 Study was used for the definition of the 2019-2021 Sustainability Plan.

For the 2019 materiality study, the main topics related to sustainability have been classified according to two variables: impact and relevance. These two variables allow MAPFRE to understand how these topics should be managed to create opportunities and minimize risks.

MAPFRE has had an internal process in place since 2014, which is constantly being improved. Its review is also requested of GRI, which each year awards the MDS (Materiality Disclosures Service) Seal that appears in the GRI Indicators (see page 186 of this report).

The materiality process for 2019 was executed in line with the following phases:

Phase 1. Identification and selection of topics included were based on the 2018 study and adjusted with the following sources in mind:

The English version is a translation of the original in information purposes only. In case of discrepancy, the Spanish version shall prevail.

External sources of sustainability information at a global level, including the 2030 Agenda, the Principles of the United Nations Global Compact, EU Directive 2014/95 as regards disclosure of non-financial and diversity information and Law 11/2018 on the same subject, the Dow Jones Sustainability Index (DJSI) and FTSE4Good indices as well as other sustainability analysts.
· Internal sources of the company, such as the MAPFRE Strategic Plan and public commitments, the Sustainability Plan 2019-2021 and the internal regulations as a whole, among others.

A total of 18 key themes for the study have been validated, which are directly related to fundamental rights recognized in the International Human Rights Charter. For this reason, a specific question related to this topic has not been included. MAPFRE considers the protection of Human Rights as material. (See p. 141, MAPFRE's commitment to Human Rights.)

Phase 2. Analysis variables. The following variables are used for the study:

· Relevance: this represents the subjective importance that stakeholders attach to the 18 topics in relation to MAPFRE.

This represents the combined result of consultation with employees, clients, providers, distributors and experts.

Impact: this represents the influence of each of the 18 topics on MAPFRE and vice versa.

For the analysis, MAPFRE's set of strategic plans, as well as the international commitments taken on by the Group and the public commitments entered into, have been considered. Sustainability standards, ESG reports from specialist analysts and investors, reports and regulatory activity at a national and international level on issues related to sustainability, and an assessment by the group of experts who participated in the study are also taken into account.

The English version is a translation of the original in information purposes only. In case of discrepancy, the Spanish version shall prevail.

Phase 3. Identification of stakeholders and definition of scope.

· Employees, clients, distributors and providers (service and support) have been included in the study, and a new category was recently created of experts formed by organizations from the third sector and academic sector.
· The scope of the study has been extended to 15 countries, 2 more than in the previous fiscal year, which together represent 77.54 percent of revenues (Argentina, Brazil, Chile, Colombia, Spain, United States, Italy, Mexico, Paraguay, Peru, Portugal, Puerto Rico, Dominican Republic, Turkey and Venezuela).

The external consultation process was carried out by CBI via an online questionnaire, and their participation again this year guarantees the anonymity and confidentiality of the responses received. A total of 1,039,432 evaluations were recorded this year, which is considered a broadly representative sampling, divided as follows.

Phase 4. Results

The materiality matrix of MAPFRE 2019 is shown below:

CORPORATE MATERIALITY MATRIX

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall preval.

Localizing material issues table:

Material Issue	Location in the Report
Prevention and mitigation of corruption fraud and bribery	4.3. Ethical Behavior: main compliance and prevention measures / MAPFRE anti-corruption framework
Cybersecurity and data privacy	4.3. Ethical Behavior: main compliance and prevention / Security measures.
	5. Risks and Opportunities / Risk management at MAPFRE
	6.4 Intellectual Dimension - Cybersecurity
Occupational Health and Safety	Human Dimension: Employee experience
Non-discrimination	6.3. Human Dimension: Diversity and inclusion
Climate change	5. Risks and Opportunities
	6.5 Natural Dimension
Carbon footprint	5. Risks and Opportunities
	6.5 Natural Dimension

The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

copia electrónica Código seguro de verificación (CSV): xIvfjCSHJswnKZUFv5fe o observa o otganica imprimiento noto novembro nov autenticidad puede ser contrastada a través de la siguiente dirección: https://sede.cnmv.libreAcceso/CSV.aspx

7.3. Notes

Note 1. Grievances and complaints.

[GRI 102-33, 102-34, 417-2]

The main figures regarding grievances and complaints processed in the Group in 2019 are as follows:

MAPFRE has an Insured Party Defense Counsel in place, which was created in 1984, and in 2003 the Complaints Division was set up, which is the body in charge of processing and resolving complaints and grievances made by users against the companies of the Group that adhere to the Customer Protection Regulation.

During 2019, the Complaints Division received 16,763 written files. Of this number, 11,342 were admitted for processing, of which 5,775 complaints with specific financial claims were considered, together with 5,567 grievances related to lack of attention or neglect in the handling of benefit processing or issuing/purchase of policies. The rest of the submissions were not admitted for processing since they did not meet the legally prescribed requirements.

Of the complaints and grievances made, 22.7 percent were approved, with 33.1 percent being dismissed and other solutions granted in 12.5 percent of the cases, with the remaining 31.7 percent having been deemed inadmissible. In addition, user service levels were improved by reducing the average resolution time by 0.2 days, compared to the previous fiscal year - it now stands at 7.9 days, compared to the maximum two months allowed by law.

The Insured Party Defense Counsel, in the second instance, received 1,313 complaints in 2019, of which he accepted 5.0 percent, with 93.9 percent being deemed inadmissible and other solutions granted in 1.1 percent of the cases. The mean time for resolution by this body was 29.4 days, less than the statutory month envisaged.

In 2019, the Complaints Division issued 24 operations-related general criteria in its Annual Report, and the Insured Party Defense Committee set down 24 recommendations in its report, all of them related to the drafting, editing and

155

The English version is a translation of the original in Spanish for information purposes only. In espanish version shall prevail.

interpretation of contracts as well as in management procedures, so as to reduce the number of complaints and grievances received from consumers.

Meanwhile, VERTI and its affiliated companies have a Claims Processing Office that received 223 written files, and admitted 212 complaints and grievances for processing, of which 19.67 percent were approved, 59.56 percent were rejected and 20.76 percent were assigned other solutions.

Note 2. New hires and employee departures in 2019 and dismissals by job position level.

[GRI 401-1]

New hires and employee departures

Reason for new hire	2019	7200178
· Merger or acquisition	રિ	0
· External recruitment	4,247	5,037
· Return after leave of absence	132	142
· Return from international posting	6	2
· Temporary contract	437	ਤੇ ਤੇ ਰੋ

Reason for departure	2019	20018
Transfer	143	2
Voluntary	2,708	3,131
Dismissal	2,385	2,543
Leave of absence	153	163
Retirement	103	87
Early retirement	7	ਤੇ
Death	13	26
Disability ●	28	34
· Termination of temporary contract	412	344

The English version is a translation of the original in Spanish for information purposes only. In espanish version shall prevail.

COPIA ELECTRÓNICA Código seguro de verificación (CSV): xIvfjCSHJswnKZUFv5fe Esta es una copia auténtica imprimible de un documento electrónico archivado por la CNMV, según el artículo 27.3 c) de octubre. Su autenticidad puede ser contrastada a través de la siguiente dirección: https://sede.cnmv.libreAcceso/CSV.aspx

Dismissals by job position level, gender and age in 2019


The Million and Children and Carles and Child Children and Children and Child Child States of Second Personal Partifications of Personal Partification							1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - 1 - - 1 - - - - - - - - - - - - - - - - -
самании измер двете седини в подачини се ставности со полниции и вериини						11 11 11 10 10 10 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11	かついているところです。そのたくています。そのときちらしているときにしたときにしたときにした
ставленности повенности середности со полниции со пристирантира пристирантира и пристеприяти							2017 11:22 11:20 11:22 17 11:21 11:21 11:21 11:21 11:51 11:51 11:51 11:51 11:51 11:51 11:51 11:51 11:57 11:52 11:57 11:52 11:57 11:52 11:57 11:52 11:57 11:52 11:57 11:52 11:5
Blandship Ball Book on way now in qualified to managing as sensionario annony and	8	145				214	11, 2017 11:00 10:00 10:00 10:00 11:00 10:00 10:00 10:00 10:00 10:00 10:00 10:00 10:00 10:00 10:00 10:00 10:00 10:00 10:00 10:00 10:00 10:00 10:00 10:00 10:00 10:00 10:00 10:
					9	344
Дреданской семейство светствов свети и седительности подременного применность и полне	251		правленные построется по страдительного полительного полность высодительные составляется 11	ਰ ਦ		20

Note 2 - Average remuneration and its evolution, broken down by gender, age and professional classification.

Average remuneration of Spain: figures in euros

			35,942			38.541	31,609	42.459	102.306	58.505	40.618	33,874	33,919	88.226	48,165	33,470	28,069	25,389	61.500	43.055	28,665	20,862	17,844	20,983	16,188
	AVERAGE FIXED REMUNERATION		73,039	162,956	62.108	66,644	36,924	59.196	130,620	62,202	48,010	35,685	42,519	98.883	48,627	37.775	29,016	29,681	74.455	48.924	29,376	20,658	17,295	18.220	16,570
			16			10	9	1.064	ਤਰੇ	ਰੇਤੇ	୧ ସିପି	313	3483	76	243	2,022	1142	940	3	21	470	446	રેટ	19	રેસ
2013	Nomor PEOPLE	్లో	27	t	L	15	7	1.957	247	321	1.140	249	2,710	177	426	1.812	295	625	11	37	ਕ ਦੇ ਰੋ	J18	41	18	23
		AGENTING TO SEROSTING NEW LEVEL	VETERANS	SENIOR MANAGEMENT	MIDDLE MANAGERS	DVISORS	BERSONNEL NDFS HIP FOR 22.61	BABY BOOMERS	SENIOR MANAGEMENT	MIDDIE MANAGERS	ADVISORS	PERSONNEL SSOCIATIES AND SUPPORT	GENERATION X	SENIOR MANAGEMENT	MIDDIE MANAGER's	ADVASORS	ASSOCIATES AND SUPPORT Personnel	GENERATIONING	SENIORTY ANALEMENT	SAFF FOR AND AND FREACH STATE	ADVESCHES	AND SUPPORT PERSONINE 198 SSOTE	GENERATION Z	ADVASORS	Associaties and Support
						48.050	29,791		105,060	55,262	41.356	34,420		89.744	44,912	34,418	28,771		73.378	37.513	29.742	21,304		22.388	17,527
	AVERAGE FIXED REMUNERATION	్లాల్లో		129.996		91,272	41,103		135,534	61,266	48.908	36,885		100,534	47,509	38,598	29,568		81,310	44.970	31,097	21,557		21,943	17,598
						t	ಕ		ਤਰੇ	126	590	296		ਰੇਪੈ	રકિર્ણ	1,917	1,109		S	ਟ ਹ	490	479		ਤਰੇ	47
2019	Not of Peoples			ದು		8	1		233	397	1033	245		209	545	1692	280		15	56	471	122		34	31
		AGE AND JOB POSITION LEVEL	ETERANS	ાતા ENIOR MANAGEM	VIDDLE MANAG	のお ADVAL	DREI 风景 PERSON SSOCIATES AND SUPP	BARROOMERS 8	ENTE SENIORE MANEGELY	ERS AMIDIDITE MANAG 2377	ars, ABMAS ્રિક્સ 5000	DRa ਹਿ ATES AND SUPP PERSON SSOL	ENERATIONEX	sentor Management	A BE BARRE ME CENS	BRS FATER FALS	的 ASSOCIATES AND SUPP PERSON	ENERATION 5	ENT ENIOR MANAGEM	GERS DDE-IVANA	ORS S ADVI	ORT NEI SSOCIALES AND SUPP PERSON	GENERATION	ORS S A Deve	ASSOCIATIES AND SUPPORT

Average fixed remuneration per country, job position level and gender 2019: figures in local currency

COUNTRY	MANAGEMENT AND	MIDDLE MANAGEMENT	ADVISORS			ASSOCIATIES
	Men	Women	Men	Women	Men	Vomen
GERMANY	91,039	69,934	47,500	40,930	31,036	29,866
ALGERIA ASISTENCIA	2,972,719	*	1,332,720	1,171,119	725,223	760,609
ARGENTINA	1,893,952	1,931,923	982,832	966,562	711,178	773,844
ARGENTINA ASISTENCIA	1,556,088	1,312,952	657,786	599,941	440,544	443,715
AUSTRALIA ASISTENCIA	116,457	83,423	51,666	57,395		63,942
BAHRAIN ASISTENCIA	13,632	米	米	*	5,454	米
BELGIUM ASISTENCIA	70,026	મ્	米	米	ત્રૂ	*
BRAZIL	191,031	160,615	70,579	61,441	35,471	25,451
BRAZIL ASISTENCIA	99,013	92,054	42,268	39,126	17,873	17,229
CANADA ASISTENCIA		ж	મૂદ		27,370	30,618
CHILE	45,166,287	41,031,299	18,785,757	18,676,384	9,683,416	10,726,175
CHILE ASISTENCIA	35,081,788	33,166,532	15,844,542	19,181,015	9,837,711	9,254,906
CHINA ASISTENCIA	405,646	284,656	131,103	101,510	51,351	51,750
COLOMBIA	122,800,623	111,079,521	41.870.508	40,523,449	20,866,172	24,205,637
COLOMBIA ASISTENCIA	104,052,540	97,072,671	45,824,097	45,420,538	19,086,429	17,516,905
COSTA RICA	27,215,395	21,703,534	8,451,185	6,115,778	મૂર	5,362,833
ECUADOR	40,467	28,997	11,227	12,406	9,257	9,388
ECUADOR ASISTENCIA	37,852	20,397	9,282	10,318	6,388	6,094
EL SALVADOR	40,746	41,462	14,461	14,562	8,625	8,527
EL SALVADOR ASISTENCIA	28,262	水	7,051	8,740	6,622	6,625
UNITED ARAB EMIRATES ASTSTENCIA	294,304			169,932		*
SPAIN	73,343	56,131	40,751	34,874	30,287	27,515
UNITED STATES OF
AMERICA	140,528	111,253	76,635	66,965	47,139	43,477
UNITED STATES OF AMERICA ASISTENCIA	93,868	77,269	52,983	42,569	33,640	33,123
PHILIPPINES	1,148,348	1,710,306	553,056	531,192	317,508	337,955
PHILIPPINES ASISTENCIA	1,479,231	892,322	223,532	234,011	મ્પ	288,275
FRANCE ASISTENCIA	55,931	52,820	37,010	26,931	27,443	27,537
GREECE ASISTENCIA	60,725	39,775	23,786	29,698	16,318	12,975
GUATEMALA	404,975	284,749	127,560	97,502	55,448	57,829
GUATEMALA ASISTENCIA	225,233	ન્ન્ર્	મૂદ	મ્દ	49,281	47,507
HONDURAS	1,156,042	773,544	314,556	263,679	179,070	187,799
HONDURAS ASISTENCIA	831,846	548,991	157,628	મૂંદ	92,579	143,497
HUNGARY ASISTENCIA	મેદ	6,855,600		ન્ન્ર્	જ્ર	મેન
INDIA ASISTENCIA	*	ત્રૃદ			મુદ	રૃત્ત
INDONESIA	396,852,095	446,550,996	75,217,445	86,525,046	53,679,316	5,9526,281
INDONESIA ASISTENCIA	223,976,568	ન્ન્ર	મ		51,718,439	5,7718,439
IRELAND ASISTENCIA	74,512	જ્ર	35,830	34,196	24,613	23,438
TTALY	69,058	56,882	41,913	40,299	27,034	29,046
ITALY ASISTENCIA	55,921	50,808	26,339	26,475	21,194	21,093
JORDAN ASISTENCIA	30,603	14,382	9,667	જૂન	6,318	6,581

MALTA	66,265	50,287	28,360	24,346	16,270	17,384
MALTA ASISTENCIA	33,442	21,485	18,628	મૂર	14,597	13,812
MEXCO	1,195,336	661,611	275,752	322,494	145,871	190,662
MEXICO ASISTENCIA	340,995	456,025	150,150	155,493	75,186	73,629
NICARAGUA	763,882	1,236,403	302,970	256,297	176,556	173,158
NICARAGUA ASISTENCIA	559,772	米	161,123	*	121,511	128,930
PANAMA	70,587	49,748	18,106	15,264	10,975	10,633
PANAMA ASISTENCIA	44,152	મ્દ	21,179	મૂર	8,881	10,687
PARAGUAY	202,739,516	146,803,302	57,148,040	58,983,912	36,425,555	41,308,411
PARAGUAY ASISTENCIA					*
PERU	177,644	94,523	52,360	38,468	22,346	28,013
PERU ASISTENCIA						28,140
PORTUGAL	47,035	41,135	24,253	22,515	18,131	17,787
PORTUGAL ASISTENCIA	34,211	33,521	16,628	19,515	15,903	13,754
PUERTO RICO	94,882	69,330	40,799	36,428	20,979	23,176
UK ASISTENCIA	49,046	40,478	27,612	24,582	18,634	18,589
DOMINICAN REPUBLIC	2,127,371	1,602,282	724,167	627,270	328,720	337,503
DOMINICAN REPUBLIC ASISTENCIA	956,389	1,044,125	327,219	285,394	249,893	230.749
TAIWAN ASISTENCIA	*	米	511,800	*	370,703	350,148
TUNISIA ASISTENCIA	45,447	33,990	13,699	11,920	10,703	10,033
TURKEY	246,577	218,390	95,816	91,601	48,229	51,531
TURKEY ASISTENCIA	122,340	133,702	66,283	77,729	44,002	40.249
URUGUAY	2,713,585	2,607,903	1,645,214	1,440,637	962,167	1,145,499
URUGUAY ASISTENCIA	1,701,378	648,833	685,092	530,163	335,337	284,400
VENEZUELA	15,321,932	13,261,560	7,131,220	7,051,686	5,999,999	6,500,653
VENEZUELA ASISTENCIA	8,698,205	5,119,643	3,243,677	2,634,047	2,599,616	1,697,958

The countries displayed in the table correspond to 99 percent of employees of the Banco de Brasil are not included.

* For data protection and confidentiality, in those countries where are two or less men or women in a given group, the information is not published.

Note 4 - Average remuneration of Board Directors and executives, including variable remuneration, allowances, compensation, payment of long-term savings provision systems, by gender.

Spain executives by gender and age:

	of Che 2 0 2 th		EVER SACERE VIE

	3		157,473
BABY BOOMERS	228	ਤਰੇ	200,432	151,791
Granisk	209	94	148,831	127,785
STANDER STATE	15	5	101,297	96,997

*This table includes information on the Group's top executives worldwide based in Spain. All persons with MANAGERIAL position are included, excluding the directors of MAPFRE S.A. whose information is presented in the Annual Report on Remuneration of the Directors of listed corporations, Published on corporate website www.mapfre.com and Note 6.26 of the Consolidated Annual Accounts. Board Directors: please refer to the Annual Report on Remuneration of Board Directors of listed companies, published on the corporate website www.mopfre.com and to Note 6.25 of the Consolidated Annual Accounts.

Executives by gender and age: figures in local currency.

2019
COUNTRY	MEN	AVERAGE MEN'S REMUNERATION	WOMEN	AVERAGE WOMEN'S REMUNERATION
GERMANY	7	191,697	1	મુદ
ALGERIA ASISTENCIA	5	5,639,981
ARGENTINA	23	3,440,177	13	3,861,321
ARGENTINA ASISTENCIA	5	3,341,489	4	2,388,562
BELGIUM ASISTENCIA	3	100,089
BRAZIL	21	526,064	26	461,487
CHILE	19	78,019,564	8	92,483,362
CHILE ASISTENCIA	4	62,933,210	2	મુંદ
CHINA ASISTENCIA	4	737,418	5	583,266
COLOMBIA	7	308,096,743	10	240,835,359
COLOMBIA ASISTENCIA	3	261,631,676	2	*

ਹਵਾ

2019
COUNTRY and and and the	MEN 11:30 11	AVERAGE MEN'S REMUNERATION	WOMEN 11991	AVERAGE WOMEN'S REMUNERATION
COSTA RICA	4	47,154,250	5	28,435,961
ECUADOR	1	米	4	84,055
ECUADOR ASISTENCIA	4	78,269
EL SALVADOR	8	67,749	4	82,137
UNITED STATES OF AMERICA	67	320,868	35	22,809
UNITED STATES OF AMERICA ASISTENCIA	14	155,775	7	111,796
PHILIPPINES	4	2,080,506	ਹੈ ਹ	3,548,673
PHILIPPINES ASISTENCIA	3	3,194,403	4	1,911,510
GREECE ASISTENCIA	3	100,766	1	米
GUATEMALA	б	1,004,436	2	来
HONDURAS	6	1,890,893	7	1,268,833
INDONESIA	9	2,123,299,061	9	1,632,441,749
IRELAND ASISTENCIA	5	108,632	1	米
ITALY	4	190,980	3	151,053
ITALY ASISTENCIA	б	125,193	3	90,000
JORDAN ASISTENCIA	5	47,728	1	※
MALTA	ਹੈ ਤੋ	100,624	б	99,808
MEXICO	35	2,688,007	11	2,056,695
MEXICO ASISTENCIA	8	899,225	8	1,121,538
NICARAGUA	3	1,912,895	6	2,708,186
PANAMA	16	146,732	15	94,367
PARAGUAY	9	378,353,022	10	246,284,441
PERU	રક	393,009	18	213,635
PORTUGAL	14	90,603	4	86,148
PORTUGAL ASISTENCIA	2	*	3	57,113
PUERTO RICO	26	175,501	19	129,142

2019
MEN	AVERAGE MEN'S REMUNERATION	WOMEN	AVERAGE WOMEN'S REMUNERATION
8	89,596	3	95,367
10	5,107,264	5	4,397,932
2	*	4	2,096,749
4	2,368,315	6	1,709,417
34	481,632	26	385,054
9	238,244	7	405,374
6	5,098,400	1	*
14	29,838,822	8	29,465,806

* For data protection and confidentiality, in those countries where there are two or less men or women in a given group, the information is not published.

Average fixed remuneration by country and generation: figures in local currency

	VETERANS	BABY BOOMERS	GENERATION में समाप	GENERATION >	GENERATION 了最
GERMANY	40,708	48,775	47,737	39,996	25,846
ALGERIA ASISTENCIA		*	2,394,725	1,062,124	591,779
ARGENTINA	1,024,309	1,301,449	1,250,273	968,643	671,925
ARGENTINA ASISTENCIA	મૂંદ	1,190,620	1,113,165	497,908	437.718
AUSTRALIA ASISTENCIA	*	*	135,696	66,930	52,971
BAHRAIN ASISTENCIA			14,942	6,457	*
BELGIUM ASISTENCIA		43,183	71,546	*	*
BRAZIL	94,972	93,500	89,457	54,185	25,572
BRAZIL ASISTENCIA	મુદ	33,612	51,461	25,287	17,998
CANADA ASISTENCIA		31,760	59,874	31,547	26,850
CHILE		31,617,654	25,703,458	19,687,140	12,144,967
CHILE ASISTENCIA	水	24,864,783	13,810,741	11,400,425	10,133,302
CHINA ASISTENCIA			254,155	100,884	43,688
COLOMBIA	*	73,567,492	57,687,701	35,844,051	23,563,393
COLOMBIA ASISTENCIA		28,482,427	54,945,936	27,355,236	19,960,456
COSTA RICA		મ્દ	19,905,644	9,061,909	6.100,857
ECUADOR		25,860	19,706	12,398	9,013
ECUADOR ASISTENCIA		6,036	11,070	8,809	6,273
EL SALVADOR		29,711	28,936	12,017	6,937

	VETERANS	BABY BOOMERS	GENERATION ×	GENERATION 17	GENERATION 人
EL SALVADOR
ASISTENCIA			13,324	9,424	6,072
UNITED ARAB EMIRATES ASISTENCIA			224,020	*
SPAIN	71,188	54,447	39,157	28,462	19,791
USA	80,626	84,250	78,368	57,164	41,035
USA ASISTENCIA	44,674	69,937	49,209	44,510	28,485
PHILIPPINES		1,026,985	1,265,221	534,804	311,503
PHILIPPINES ASISTENCIA			1,330,082	328,995	209,421
FRANCE ASISTENCIA		40,310	37,524	22,093
GREECE ASISTENCIA		18,057	19,992	15,206	米
GUATEMALA		317,225	268,552	102,473	52,185
GUATEMALA ASISTENCIA			332,869	80,729	47,438
HONDURAS		571,908	587,600	247,556	147,741
HONDURAS ASISTENCIA		*	436,267	183,295	96,570
HUNGARY ASISTENCIA			9,053,280	2,792,581
INDIA ASISTENCIA			મુંદ	211,948
INDONESIA		551,537,162	162,654,000	84,774,134	53,670,690
INDONESIA ASISTENCIA			મૂદ	64,990,006	52,738,179
IRELAND ASISTENCIA		49,081	34,024	30,744	22,095
ITALY		41,341	38,034	32,863
ITALY ASISTENCIA		42,704	31,672	23,346	21,018
JORDAN ASISTENCIA			17,724	11,637	5,340
MALTA		47,778	39,694	26,389	18,790
MALTA ASISTENCIA		15,849	18,054	22,591	13,742
MEXICO	*	1,445,654	467,104	309,422	209,634
MEXICO ASISTENCIA		218,831	234,947	169,913	97,386
NICARAGUA		650,133	730,644	316,420	164,819
NICARAGUA ASISTENCIA		*	521,119	181,461	140,104
PANAMA	*	45,778	33,293	18,801	11,705
PANAMA ASISTENCIA		*	24,335	12,730	7,989
PARAGUAY		*	168,597,034	69,044,880	36,975,250
PERU	63,940	91,745	71,290	39,714	25,611
PORTUGAL	*	33,979	25,549	20,376	16,656
PORTUGAL ASISTENCIA		22,235	20,579	13,323	*
PUERTO RICO	66,363	53,274	42,668	29,787	22,713
UK ASISTENCIA	20,444	29,411	33,674	24,599	18,467
DOMINICAN REPUBLIC		1,581,366	1,277,982	550,799	378,288
DOMINICAN REPUBLIC ASISTENCIA		1,363,134	640,357	334,407	238,549
TAIWAN ASISTENCIA		481,900	564,261	384,431	344,443
TUNISIA ASISTENCIA		79,112	22,653	11,683	*
TURKEY	66,814	180,466	121,564	86,136	55,298

164

	VETERANS	BARY BOOMERS	と	GENERATION GENERATION	GENERATION
TURKEY ASISTENCIA	મેર	148,467	92,987	50,444	41,236
URUGUAY		2,930,544	1,884,332	1,362,590	867,053
URUGUAY ASISTENCIA		મેદ	910,728	382,891	294,449
VENEZUELA	8,627,446	11,332,217	10,368,994	7,748,817	6,597,518
VENEZUELA ASISTENCIA		*	3,320,397	3,181,604	1,341,709

The countries shown in the table correspond to 99 percent of the workforce, excluding employees of BANCO DO BRASIL.

* For data protection and confidentiality, in those countries where are two or less men or women in a given group, the information is not published.

Note 5 - Work-related accident data [GRI 403-9, 403-10; L.11/2018]

In 2019, work was carried out to homogenize accident data on a global level, rigorously adhering to GRI 403.

The formulas used to calculate these indices were:

ACCIDENT FREQUENCY RATE: Represents the number of accidents with leave occurring during the workday for every one million hours worked.
OCCUPATIONAL ILLNESSES FREQUENCY RATE: Represents the number of occupational illnesses with leave occurring for every one million hours worked.
INCIDENCE RATE OF OCCUPATIONAL ILLNESSES: Represents the number of occupational illnesses resulting in an absence per 100,000 workers.
INCIDENCE RATE OF WORK-RELATED ACCIDENTS: Represents the number of work-related accidents resulting in an absence per 100,000 workers.
RATE OF LOST DAYS: Represents the number of days lost for every 1,000 hours worked.
- EMPLOYMENT ABSENTEEISM RATE: Refers to the number of days lost in the period in question in relation to the total days listed by the workforce in the same period, indicating how many days have been lost in every 100.
FREQUENCY INDEX: Represents the number of accidents for every one million hours worked.
SEVERITY INDEX: Represents the number of days lost for every 1,000 hours worked.
DEATHS FROM WORK-RELATED ACCIDENTS: Represents the number of deaths resulting from a work-related accident for every one million hours worked.
DEATHS FROM OCCUPATIONAL ILLNESS: Represents the number of deaths resulting from an occupational illness for every one million hours worked.

Note 6: environmental indicators [L.11/2018]

Table I. Environmental context

	UNIDADES	2019	2018	2017
Employees working under environmental reporting (Integrated Report)*	Employees	32,256	33,177	33,947
Employees working under environmental management certification (ISO 14001)	Employees	11,759	11,589	11,369
Employees working under energy management certification (ISO 50001)	Employees	6,730	6,588	4,885
Employees working under carbon footprint verification (ISO 14064)	Employees	16,945	15,546	12,701
Premium volume managed under SIGMAYE (ISO 14001): 71.12%
* Data from Spain, Argentina, Brazil, Chile, Colombia, USA, Italy, Mexico, Puerto Rico, Turkey, Costa Rica, El Salvador, Nicaragua, Honduras, Panama, Guatemala, Ecuador, Dominican Republic, Paraguay, Uruguay, Peru, Venezuela, Portugal, Philippines, Malta and Germany.

Table II. SIGMAYE Control

	GRI	UNITS	2019	2018	2017
Environmental diagnosis and inspections	ESS	Units	20	ട	9
Internal environmental audits	ESG	Units	50	39	44
Environmental certification audits	ES9	Units	28	29	36
Assets subject to environmental controls	ESB	%	34.26%	32.75%	31.26%
Environmental compliance: In relation to environmental fines, there was no record of having received any fine in 2019. [GRI 307-1]
.

Resources devoted to environmental risk prevention: €712,856

The MAPFRE Group (in Europe and Brazil) has public liability insurance with specific coverage for the management of its environmental risks due to pollution (€300,000 - €10 million) and environmental responsibility (€300,000), as established by state legislation.

Table III. Carbon footprint broken down by scope. The following greenhouse gases are reported for the three scopes falling within the GHG Protocol and ISO 14064: CO2, CH4, N2O, HFCS, PFCS, SF6 and NF3. MAPFRE's methodology for calculating its carbon footprint is carried out through financial control. For the calculation, emission factors of the generation mix for the corresponding country and the latest available information are applied: DEFRA, International Energy Agency, GHG Protocol.

	લેશ	UNITS	2019	2018	2017
Carbon footprint (GHG emissions)
Scope 1	305-1	TmCOzeq	11,669	10,330	13,272
	305-5
	305-1	TmCO2eq	14,307	16,215	15,496
Scope 2 (market based)	305-5
Scope 2 (location	305-1	TmCOzeq			28,719
based)	305-5		35,601	35,900
	305-1	TmCOzeq	33,049	26,435	28,352
Scope 3	305-5
Total GHG emissions	305-1		59,025	52,980	57,120
(market based)	305-5	TmCO2ea
Carbon footprint indicators
		TmCOzeal	1.83	1.59	1.67
Emissions per employee	305-4	employee
		TmCOzeal	2.34	2.78	2.95
Emissions per premium	305-4	premium
* Data for Spain, Argentina, Brazil, Chile, Colombia, USA, Italy, Mexico, Puerto Rico, Turkey, Costa Rica,
El Salvador, Nicaragua, Honduras, Panama, Guatemala, Ecuador, Dominican Republic, Paraguay,
Uruguay, Peru, Venezuela, Portugal, Philippines, Malta and Germany.

Table IV. Breakdown of carbon footprint and categories included in different scopes

[L.11/2018]

	GRI	UNITS	2019	2018	2017
	Scope 1	TmCOzeq	11,069.1	10,330	13,272
	302-1	TmCOzeq	3,154.4	2,604.1	2,350.7
Natural gas	302-4 305-1	m³	1,491,727.02 1,293,571		1,156,730

	302-1	TmCOzeq	792.86	1,135.33	1,481.76
Fuels in fixed installations	302-4 305-1	L	292,469	368,709	441,409
	302-1	TmCO2eq	2,854.96	1,058.79	1,893.13
Refrigerant gases	302-4 305-1	Kg	1,489.58	536	941
	302-1	TmCO2eq	4,866.87	5,531.85	7,546.13
Fuels in own vehicles	302-4 305-1	------------------------------------------------------------------------------------------------------------------------------------------------------------------------------	2,003,907	2,319,928	3,164,699
Scope 2		TmCOzeq	14,307	16,215	15,496
Electricity	302-1 302-4 305-2	GWh	108.9	113.41	108.72
2 20 Scope 3		TmCO2eq	33,048.81	26,435	28,352
Business travel	302-4	TmCO2eq	9,447.77	6,976.85	8,118.36
(air, train and bus)	305-3	Km	43,167,836	53,428,757	46,305,542
Business travel	302-4	TmCOzeq	1,461.04	1,594.31	1,701.24
(vehicles)	305-3	Km	8,249,786	8,825,915	9,325,947
Paper consumption	302-4 305-3	TmCO2eq	1,633.32	1,526.79	1,925.53
Paper waste	302-4 305-3	TmCOzeq	19.84	18.07	19.33
Toner use	302-4 305-3 -2	TmCO2eq	91.26	87.39	51.71
Toner waste	302-4 305-3	TmCOzeq	117.41	131.15	219.35
Fluorescent waste	302-4 305-3	TmCOzeq	0.34	0.51	0.21
Commuting	302-4 305-3	TmCO2eq	20,277.83	16,044.38	16,257.54
Natural gas, fuel in buildings, refrigerant gases, fuel in own vehicles, electricity consumption, paper consumption, paper waste, toner consumption, toner waste, fluorescent waste:
* Data for Spain, Argentina, Brazil, Chile, Colombia, USA, Italy, Mexico, Puerto Rico, Turkey, Costa Rica, El Salvador, Nicaragua, Honduras, Panama, Guatemala, Ecuador, Dominican Republic, Paraguay, Uruguay,
Peru, Venezuela, Portugal, Philippines, Malta and Germany.
Business travel (air, train and bus)
2017: Data from Spain, Argentina, Brazil, Chile, Peru, USA, Puerto Rico, Portugal and Turkey.
2018: Data from Spain, Argentina, Brazil, Chile, Peru, USA, Puerto Rico, Portugal, Turkey, Mexico, Costa Rica,
Nicaragua, Dominican Republic, Uruguay and Malta. 2019: Data from Spain, Argentina, Brazil, Chile, Peru, USA, Puerto Rico, Portugal, Turkey, Mexico, Dominican
Republic, Uruguay and Germany.
Business travel (vehicles)

2017, 2018, 2019: Data from Spain

Commuting

2017: Spain, Colombia, Portugal and Puerto Rico

Donated electrical

appliances

Batteries

IT support

2018: Spain, Colombia, Portugal and Puerto Rico

2019: Spain, Colombia, Portugal, Puerto Rico and Mexico

Table V. Consumption of resources

	GRI	UNITS	2019	2018	2017
ENERGY
Total energy consumption	302-1 302-4	GWh	148.89	155.96	159.35
Natural gas consumption	302-1	GWh	16.49	13.88	12.65
Fuel consumption fixed installations	302-4 302-1	GWh	2.83	4.55	5.07
Fuel consumption of mobile	302-4 302-1	GWh	20.64	24.12	32.92
installations Consumption of conventional	302-4 302-1
electricity	302-4	GWh	42.66	47.71	40.25
Consumption of renewable energy	302-1 302-4	GWh	66.27	65.7	68.47
Energy consumption/employee	302-3	kWh / employee year	4,616	3,919	3,680
Energy consumption/premium	302-3	KWh/premium (thousand euros)	5.90	6.87	6.5
*Data for Spain, Argentina, Brazil, Chile, Colombia, USA, Italy, Mexico, Puerto Rico, Turkey, Costa Rica, El Salvador, Nicaragua, Honduras, Panama, Guatemala, Ecuador, Dominican Republic, Uruguay, Peru, Venezuela, Portugal, Philippines, Malta and Germany.
WASTE
Recycling **	GRI	MT	3,397.84	3,099.58	2,980.16
Paper	306-2	MT	929.05	844.95	888.54
Toner and cartridges	306-2	MT	9.61	10.26	17.31
Electrical appliances	306-2	MT	33.14	66.61	33.66

ਹਵਿ

306-2

16.24

1.69

0.14

13.07

1.58

2.71

8.77

2.20

2.78

	લરા	UNITS	2019	2018	2007
Mobile phones	306-2	MIT	0.30	0.09	0.75
Bulbs and fluorescent lamps	306-2	MIT	2.26	4.34	1.55
Expired medicines	306-2	MT	0.09	0.20	0.11
X-rays	306-2	MT	0.09	1.07	0.98
Workshops and maintenance	306-2	MT	1.699.14	1,696.74	1,645.54
Urban	306-2	MT	706.09	457.96	377.98
Landfill	306-2	MT	1,282.74	527.07	444.33
Urban	306-2	MT	1,241.85	500.68	391.91
Sanitary waste	306-2	MT	3.57	2.40	2.28
Workshops and maintenance	306-2	MT	36.66	23.11	47.43
Other	306-2	MT	0.66	0.89	2.71
	306-2	MIT	4,680.58	3,626.65	3,424.49

Total waste generated Data for Spain, Argentina, Brazil, Chile, Colombia, USA, Italy, Mexico, Puerto Rico, Turkey, Costa Rica, El * Includes waste recycling and recovery operations.
	303-5	m3	711,795	665,874	615,356
consumption per	303-5	m3 / employee	22.07	19.93	18.01
Water *Data for Spain, Argentina, Brazil, Chile, Colombia, USA, Italy, Mexico, Puerto Rico, Turkey, Costa Rica, El Salvador, Nicaragua, Honduras, Panama, Guatemala, Ecuador, Dominican Republic, Uruguay, Peru, Venezuela, Portugal, Philippines, Malta and Germany. PAPER
	-11
Total paper use	307-1	MT	1,878	1,818	2,136
Salvador, Nicaragua, Honduras, Panama, Guatemala, Ecuador, Dominican Republic, Uruguay, Peru, Venezuela, Portugal, Philippines, Malta and Germany. WATER Total water consumption employee Paper use with label * Data for Spain, Argentina, Brazil, Chile, Colombia, USA, Italy, Mexico, Puerto Rico, Turkey, Costa Rica, El Salvador, Nicaragua, Honduras, Panama, Guatemala, Ecuador, Dominican Republic, Uruguay, Peru, Venezuela, Portugal, Philippines, Malta and Germany.	301-1	MT	1,269	1,359	1,317
TONER

170

イ

Note 7: Social and environmental products and services

[GRI 102-2, 201-2,203-2, FS1, FS3, FS7, FS8, FS13, FS14, FS15; L.11/2018]

Products with high social content

These are products with basic coverage (Burial, Homeowners, Life etc.) that are adapted to very specific local necessities, with reduced premiums, which provide cover for personal risks of various collectives and also contribute to developing an insurance culture.

Country	ame	Type of product or service	% of total premiums	% Of total for line	No. of insureds / beneficiaries لم الملك الملك المقارب المنتخب
	IBERIA TERRITORIAL AREA
Spain*	Hospital- ization and health	Health Choice: Healthcare assistance insurance that guarantees primary care and basic diagnosis tests at approved centers. For any other medical assistance the insured party may require, discounted prices by private patients are offered at payable recommended clinics.	0.13	0.13	8,214
	Life Protect- ion	Burial Cover: Based on sliding pricing scale that is adapted to clients who wish to keep their burial insurance in force but are facing financial difficulties.	2.8	2.8	246,573
		* BANKIA MAPFRE VIDA has been launched the Microinsurance product linked to Microcredit. This is a single-premium life protection insurance that guarantees cancellation of the linked microcredit, with the insured capital limit of the insurance in accordance with the conditions contained in the policy. This microinsurance has a strong social component, since its main objective will be to protect the interests of entrepreneurs who are undergoing economic hardship. Due to its recent release, no marketing data is yet available.
Brazil	Simple risks	Residential microinsurance: A social inclusion insurance, given the low premiums and coverage offered, that support policyholders in the event of unforeseen circumstances.	0.65	100	392,803
	Life	Protected Telephone Account Program: Protection for individuals in vulnerable situations. Financial protection insurance with coverage for payment of telephone bills in case of unemployment, disability, etc., thereby protecting clients in vulnerable situations.	0.02	0.13	23,215

CNMV Oficina: ROD MADRID Registro de Entrada Nº: 2020018771 Fecha de registro: 2020-02-12 01:18:30

Country -	Line	Type of product or service	% of total premiums	% of total for - line	No. of insureds / beneficiaries
		Crediamigo Microcredit Program: Designed to drive economic growth and provide coverage for death or funeral costs, in addition to four monthly capitalization lotteries.	0.27	1.79	703,580
		Life Protection with Rewards: Microinsurance that combines protection for the insured party with monthly prize drawings. Sold by MAPFRE in association with Casas Bahía.	1	6.66	899,866
		Agroamigo: that solution insurance A new growth economic for micro- promotes entrepreneurs in formal or informal sectors of the economy in rural areas.	0.06	0.38	183,512
		Proteção Financeira: Credit protection products for people with low incomes, which guarantee the payment of debts when buying consumer goods.	0.54	3.63	952,914
		People microinsurance: Insurance that protects clients who use the Correspondent Banking Agency for loans or pay bills.	0.23	1.54	11,373
		CR personal accident microinsurance with rewards: Microinsurance that protects clients' purchases in CR Diementz stores.	0.00	0.03	536,855
		Solar microinsurance: Offered to protect clients' purchases in Solar stores.	0.00	0.00	17,954
	Other activities	Education Insurance: Protects the basic and essential needs of the population. Insurance intended to protect students while under the school's responsibility and coverage for the person responsible for the student's finances.	0.44	2.97	1,499,484
Colombia	Burial	Funeral insurance: Coverage of funeral expenses and financial support of up to 3,000 US dollars in case of accidental death of the principal insured party. The average monthly premium for a family plan (principal insured party, spouse and all children under 40 years of age) is three US dollars.	5	84	472,314
	Life	Life insurance: No age limit, includes terminal illness and coverage from the first payment that includes a lump sum and a monthly income. The monthly premium on a personal plan is three US dollars.	6	33	954,510

CNMV

Country	line	Type of product or service	of total premiums	% Of total for line	No. of insureds / beneficiaries
	Accidents	Personal accident insurance: Provides death or permanent total disability indemnification, or a monthly income for temporary disability. Homicide is covered from the first year of the policy. The average monthly premium for a personal plan is three US dollars.	3	81	422,346
	Non-Life	Homeowner insurance: Intended for homeowners and tenants who can purchase insurance on a modular basis by selecting different kinds of coverage. Indemnification is paid at first loss up to the maximum insured amount, as no inspection is required. The average monthly premium is four US dollars.	0.36	1.06	28,086
Dominican Rep.	Hospital- ization and health	Assistance program for entrepreneurs and SMEs who are Banco BHD León credit card holders: Set of services or assistance to the insured party's business, including plumbing, electricity, locksmith, legal assistance.	0.0011	0.0077	2,753
		Coverage for male cancer victims who are Banco holders: BHD León credit card coverage guaranteeing that the insured party receives the contracted face value in the event they are diagnosed for the first time with prostate cancer.	0.0007	0.0049	2,214
		Assistance granted to the insured party for holding a Banco BHD León Mujer credit card: Services homeowners coverage, include breakdown coverage, legal coverage and coverage for medical emergencies on domestic and international trips, as well as personal assistance.	0.009	0.0658	43,998
		Education insurance covering the death of a student's father: In the event of the death or total disability of the insured, the company will pay the insured sum to the school that certifies the enrollment of the children of the insured party.	0.038	0.0276	10,697
Mexico	Personal accidents	Accidents and illness: Protection insurance against accidents suffered by domestic workers.	ND	ND	3,000
	Hospital- ization and health- care	Standardized basic insurance for major medical expenses: Individual or family insurance that provides indemnification for treatment or diagnosis of covered events and hospitalization.	ND	ND	9

CNMV

Country	Inne	Type of product or service	% of total premiums	Yo Oil total for line - L	No. of insureds / beneficiaries
	Industrial risks	Cash theft: Protection for unauthorized cash withdrawals and transfers.	ND	ND	3,000,000
	Life Savings	Standardized basic personal accident insurance: Individual insurance that pays out the insured sum to the beneficiary in case the insured dies from a covered accident.	ND	ND	154
	Life Protect- ion	Basic life: In the event of death, the insured sum is paid out to the beneficiaries. In the event of a of cancer or hospitalization, the diagnosis policyholder is compensated.	ND	ND	4,441,918
Venezuela	Hospital- ization and health	Solidarity-based health insurance: This product is intended for individuals on the minimum wage, the elderly, pensioners and people with disabilities.	0.00	0.00	715
	Personal accidents	Life and personal accident solidarity policy: A product intended for individuals on the minimum wage, the elderly, pensioners and people with disabilities.	0.00	0.00	13
	Other activities	Funeral solidarity insurance: A product intended for individuals on the minimum wage, the elderly, pensioners and people with disabilities.	0.00	0.00	87

Environmental products and services

Insuring renewable energy

29,948.28 MW wind power

3,749.16 MW solar

24,292,406.5 million euros insured premiums

Green Policy:

46,837 low-emission vehicles insured

20,292,406.5 million euros insured premium

Out-of-use vehicles (OUV) 2,556 OUV vehicles 73,544 parts recovered Environmental liability 160,000 policies with free coverage 8,273,260.5 million euros insured premium Sustainable mobility 18 Hybrid tow-trucks 28 Electric tow-trucks Insuring crops and sustainable forests 65,497 hectares insured 1,909 climate insurance policies 171,963 million euros insured premiums

Overall, 59,771policies covering environment-related aspects were issued in 2019, representing a premium volume of more than 57.8 million euros, which represents 0.25 percent of the Group's total premiums.

Environmental products and services
Product/Service		2019	2018	2017
Environmental risk coverages	No. of policies	59,771	57,357	20,705
Insurance for sustainable projects	Net premiums (euros)	57,889,070	56,479,313	120,461,190
Environmental and energy-saving services	Revenue (euros)	306,531	408,517	235,177

In the case of environmental and energy services, some are directly associated with insurance policy benefits. Proof of this is that in 2019 the MAPFRE provider network has 28 100-percent electric vehicles with mobile recharging to provide roadside assistance for electric cars. These assistance vehicles are equipped with a generator that can charge cars anywhere, anytime. As a result, this service reduces carbon footprint, preventing

assistance tow trucks from traveling to the breakdown location and towing the vehicle back to a charging station.

In addition, MAPFRE is encouraging its providers to renew their tow truck fleets with hybrid vehicles, and there are already 18 light hybrid tow-trucks available for this roadside assistance service.

Other services are related to research on repairs for vehicles involved in accidents, conducted at the Road Safety Experimentation Centers (CESVI) in Spain and the Americas, which contributes to the reduced consumption of pollutants such as paint and solvents and helps minimize the environmental impact of vehicle repairs.

CESVIMAP, through CESVI RECAMBIOS, manages out-of-use vehicles. A total of 2,556 out-of-use vehicles were handled in Spain in 2019, from which 73,544 parts and components were recovered for reuse.

Código seguro de verificación (CSV): xIvfjCSHJswnKZUFv5fe COPIA ELECTRÓNICA Esta es una copia auténtica imprimible de un documento electrónico archivado por la CNMV, según el atículo 27.3 c) de la Ley 392015, de 2 de octubre. Su autenticidad puede ser contrastada a través de la siguiente dirección: https://sede.cnmv.libreAcceso/CSV.aspx

Below are the main environment-related insurance products and services:

Country	Type of product or service	% of total % of line premiums	total insureds	No. of
	IBERIA TERRITORIAL AREA
Spain	Green policy: comprehensive pay-per-use insurance for electric, hybrid and eco-friendly vehicles.	0.14	0.15	6,127
	P&C and third-party liability insurance: product for solar farms and photovoltaic power stations, wind farms and cogeneration plants.	0.66	3.47	1,701
	Environmental liability cover in general third-party liability policies and multirisk policies: covers policyholder liability for damage caused due to environmental pollution.	0.026	ND	1,252
	FOREST: Mass Forest Fire Cover.	0.03	1.38	164
	SUSTAINABLE MOBILITY_ELECTRIC SCOOTERS: A third-party liability coverage possibility is offered for those vehicles that enhance people's sustainable mobility.	6.28	0.08	17,725
Portugal	Environmental liability: covers the cost of repairs due to accidents or an imminent threat, damage to wildlife and habitats, water and land pollution.	0.27	ND	847
	EURASIA TERRITORIAL AREA
	Low emissions car policy	5.0	5.0	40,710
Germany	Electric and hybrid car policy	1.2	1.2	2,523
	LATAM TERRITORIAL AREA
Brazil	Environmental third-party liability: total risk insurance; namely, the insurance company guarantees the payment of damages up to the value of the maximum compensation limit. This insurance consists of basic coverage, mandatory requirements and additional coverage, as well as optional rent.	0.05	27.18	180
	Wreck disposal: policy for pleasure and general aviation craft that provides compensation to policyholders to recover damaged property and minimize environmental harm.	0.0	0.24	82
	RESIDENTIAL MICROSURANCE: The plans feature the assistance of ecological disposal, which allows the insureds to send their old/broken furniture or appliances to a company that specializes in the correct disposal of these materials.	0.65	100	392,803
	EXTENDED WARRANTY for Domestic Appliances: there are a number of goods that are characterized as "Troca Certa". These are small products (appliances) that, due to their repair cost, are simply exchanged, and these products are then collected from the insureds. These defective/broken products are sent to a company that ensures the materials and electronic components	0.37	25.83	1,421,067

177

Country	Type of product or service	% of total premiums	% of line total .	No. of insured s
	are disposed of correctly, ensuring that there is no impact on the environment.
	SMART RESIDENTIAL / DISCHARGE: The insurer will send a professional to dispose of furniture, electronic equipment and appliances, in line with current sustainability practices and regulations. The removal of furniture and electronic equipment and appliances must take place within the insured's residence.	0.16	9.87	5,209
Country	Type of product or service	% of total premiums	% of line No. of total ma	insureds
Mexico	Safe gas station: insurance that includes public liability coverage against contamination.	0.025	ND	537
Colombia	AND TRANSPORTATION OF DANGEROUS GOODS HYDROCARBONS: This coverage is extended to cover third-party liability and defense expenses, in line with the decrees of Law 1609 of 2002 (hydrocarbons company), 4299 of 2005 (truck owners), 321 of 1999 and Law 1333 of 2009.	100	0.7	9
	Climate insurance: insurance that protects agricultural and livestock producers against the effects of natural events on their crops. This provides coverage for natural events such as drought or flooding, frost, strong wind, landslide, hail, avalanche and fire.	100	100	1,745
	INTERNATIONAL TERRITORIAL AREA
Puerto Rico	MCS-90: transportation policy that covers repairing damage resulting from contamination due to leaks of hazardous products.	0.04	0.15	274
GLOBAL BUSINESSES
	Damage and third-party liability policy: insurance that covers the different phases (design, construction, commissioning and operation) of large renewable energy thermosolar plants and wind farms. These products are marketed by MAPFRE GLOBAL RISKS.
Wind farms		0.07	1.5	7
Solar energy		0.02	0.4	10

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Note 8 – Principles of the Global Compact and MAPFRE's human rights prevention and enforcement (human rights) measures

GRI 102-17, 205-1, 205-2, 205-3, 406-1, 407-1, 408-1, 409-1, 410-1, 412-1, 412-2, 412-3, 413-1, 413-2; L.11/2018]

n line with the United Nations Principles of Business and Human table shows the organization's commitment to the 10 Principles of the Global Compact and human rights, as well as the main prevention and mitigation measures, and the claim and repair mechanisms.

9	obal Compact Principles	MAPFRE's public commitment to human rights	Prevention and Mitigation (due diligence)	Claim and repair mechanisms
	Principle 1	Institutional, Organizational and Business	Internal regulation:	Corporate Ethics Committee.
		Principles		Ethical complaints Channel for
	"Companies must support and respect the	Code of Ethics and Conduct (express reference)	MAPFRE Anti-Corruption Framework	employees/collaborators and
	protection of internationally proclaimed	Corporate Social Responsibility (Action Policy	Systems for the prevention and evaluation of	suppliers
	human rights under their sphere of	and the Organization's commitment to Human	internal risks and arising from MAPFRE's activity:	The Financial and Accounting
	influence."	Rights)	Impact self-assessment - Guide to implementing the	Whistleblower Channel for
		Social commitments 2019-2021, assumed at	United Nations Guiding Principles on Enterprise and	employees.
	C Principle	the Annual General Meeting held in 2019: 45	Human Rights, developed by the Spanish Global	Customer claim and complaint
		percent of vacancies in positions of	Compact Network.	channels
	"Businesses must ensure that their	responsibility occupied by women; 3 percent of	MAPFRE materiality survey (Detects Internal risks	Employee harassment protocol
	businesses are not complicit in human rights	workforce with people with disabilities	and risks arising from the activity)	Human Resources departments
stugin nemuH	violations."		Environmental, Social and Governance Analysis (ESG)	Employee Legal Representatives
		Adherence to:	report on underwriting and investment	Corporate Sustainability
	Principle 3		RepRisk Report, to assess and monitor ESG risks of	Committee
		United Nations Global Compact:	business conduct related, among others, to human
	"Businesses must uphold freedom of	UNEPFI Principles for Sustainable Insurance	rights
	association and effectively recognize the	(PSI):	Commitment survey
	right to collective bargaining."	United Nations Principles for Responsible	Pertormance evaluation
		Investment (PR	Development Plans
	Principle 4	Paris Pledge for Action.	Internal and external reputation surveys
	"Businesses must uphold the elimination of		Healthy Company Model (occupational risk
	all forms of forced and compulsory labor."		assessments: Safety, hygiene and ergonomics,
			psychosocial risks, medical examinations,
opingues standards	Principle 5		epidemiological studies, etc.)

179

(SDGs) Commitment to UN Development Goals "Businesses must encourage initiatives that "Businesses must uphold the elimination of "Businesses must maintain a precautionary discrimination with respect to employment "Businesses must uphold the eradication of approach that favors the environment" promote greater environmental Principle 8 Principle 7 Principle 6 child labor" and jobs."	œ Agenda 2030 and its	The Financial and Accounting Whistleblower Channel Specific channels and resources for protecting rights detect corruption situations and prevent fraud and Ethical complaint channels arising from failure to Vendor approval with environmental, social and Environmental Management System (SIGMAYE) Internal systems and procedures established to comply with the Code of Ethics and Conduct, Internal, control and compliance audits available to employees and suppliers. and managing customer claims. money laundering. for employees.










		governance (ESG) criteria including human rights, non-discrimination and compliance with
		environmental and labor standards
		Permanent dialog with stakeholders and workers'
		legal representation
responsibility."
ਰੇ Principle		a preventive and awareness-raising measure on UN 2030 Training in human rights for employees and suppliers as
"Businesses must encourage the	Agenda
development and promotion of
environmentally friendly technologies" inviroment
Principle 10
"Businesses must work against corruption in Andri-corruption
all its forms, including extortion and
bribery."

180

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♪

ADDITIONAL INFORMATIONADDITIONAL INFORMATION

Note 9: Our footprint: social value, shared value [GRI 201-1; L.11/2018]

ENVIRONMENTAL FOOTPRINT

ENVIRONMENTAL CERTIFICATIONS

0 11,759 employees working under environmental certification ISO 14001.
6,730 employees working under energy management certification ISO 50001.
0 16,940 employees working under carbon footprint verification ISO 14064.
12 international head offices certified as being sustainably constructed.

CARBON FOOTPRINT

· MAPFRE is committed to being carbon neutral in the Iberia territorial area (Spain and Portugal) by 2021.
· MAPFFRE is committed to making the entire Group carbon neutral by 2030.
The annual reduction in the carbon footprint globally has been an average of 10 percent per year.
· 1,258,148 kWh of savings since 2016, thanks to the CoolBiz campaign in Spain.
· The MAPFRE without Plastic campaign avoided the generation of 25.8 tons of plastic waste and the emission of 104 tons of CO2 into the atmosphere.

PRODUCTS AND SERVICES OFFERING ENVIRONMENTAL COVERAGE

· More than 58,000 policies in force with environment-related coverage.
· 160,000 policies with free environmental responsibility coverage.
· 65.497 hectares of agricultural land and sustainable forests insured.
· 33,697.44 MW derived from wind and solar renewables insured.
· 46,837 low-emission vehicles insured under eco policies.
· 46 hybrid tow trucks form part of our provider fleet.

ENVIRONMENT-RELATED TRAINING

· 2,495 employees have received environment-related training.
· 2,388 volunteers planted 1,969 trees and collected 14.4 tons of trash on MAPFRE's second corporate Volunteering Day, under the banner of "Everyone for the Environment".

BIODIVERSITY AND ECOSYSTEM

2019 was the third year in which MAPFRE maintained its commitment to the 100 Empresas por los bosques (100 Companies for the Forests) initiative.
2019 was the fifth year of collaboration with the WWF Spain for the conservation of biological diversity.

SOCIAL FOOTPRINT

DIRECT AND INDIRECT EMPLOYMENT

· 97.3 percent of employees on permanent contracts.
· 177,197 providers with whom MAPFRE maintains sales and service relationships.
· 79,239 agents, delegates and brokers work with MAPFRE.
· 6,835 approved providers participate in the ESG approval process.

FLEXIBILITY AND CONCILIATION

· 56.2 percent of employees avail of flexible working schedules.
· 3.1 percent of employees avail of reduced workdays.
· 1.6 percent of employees avail of parental leave.
16.9 percent of employees equipped for technological mobility (remote working).

· 1,529 teleworking employees.
14.9 percent of employees availed of internal mobility to change their job positions.
178.3 million euros invested in social benefits for employees.

TRAINING AND TALENT

· 100 percent of the workforce received training via 1,518,412 hours of training, which represents an average of 44.2 hours per employee and an investment of 536.30 euros per employee.
· 15 percent of employees have had career plans developed for them.
· More than 44,700 enrollments for the more than 230 training resources available.
· 259 agreements with Universities, business schools and third-level institutions.
1,179 students completed internships in the Group during 2018
· 478 providers received training in Human Rights, 403 of whom were security personnel.

HEALTH AND WELL-BEING

· 13,015 hours dedicated to training employees in Health and Well-being.
862 activities carried out in 31 countries as part of the IV MAPFRE Week: "Health, Well-being and Diversity 2019".
· 1,741 workplace risk assessments completed.
· 2,642 psychosocial evaluations carried out.
· 51.1 percent of employees availed of company medical check-ups.
Numerous campaigns, initiatives, chats and training sessions related to health and sickness prevention, work and personal environment, mental well-being, physical activity and nutrition were carried out in 2018. (Detailed information available in the MAPFRE People and Organization 2019 report.)
· Launch of Savia, a new health services digital platform.
Health-related products aimed at vulnerable groups or people at risk of social . exclusion. (See Note 7.)

183

DIVERSITY

· 54.9 percent of the current workforce are women.
· 40.1 percent of positions of responsibility are held by women.
· 289,603.06 euros invested in workplace integration measures.
· 151,254.84 euros in contracts conceded to special employment centers.
· 2.9 percent of employees with some type of disability on the workforce.
· 53.9 percent of employees trained via an e-learning course on disability.
· 164 volunteering activities directed at people with disabilities.
· The Group comprises employees from 84 nationalities.
· 5 generations (Veterans, Baby Boomer and Generations X, Y and Z) work side by side at MAPFRE.
· 211 mentors and 247 mentees taking part in the global traditional and inverse mentoring program that promotes continued development through the exchange of knowledge among generations.

INNOVATION

· Second insur_space call, with numerous startups participating.
· Second edition of the innova intrapreneneurship program.
Participation of MAPFRE as anchor investor in the venture capital fund "Alma Mundi Insurtech Fund, FCRE", which is focused on the insurtech space.
75 new products launched. .

CORPORATE VOLUNTEERING

The Corporate Volunteer Program is aligned with the SDGs. Due to its specialty and the activities it carries out, it has an impact on other SDGs, in addition to the nine priorities for MAPFRE.

The following table shows, through each of the six lines of action, how volunteering activities carried out throughout 2019 impact on the different SDGs:

184

♪

Line of Action	Number of activities	Participating employees	Participation of employee family members	Number of direct beneficiar ies	Spe
Health	રકાર	4,236	978	35,258	rough A 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8
Nutrition	373	2,632	358	44,246
Environment	137	2,464	1,382	3,849	3 038811 230 A ANDSATENCE Francisco -11/4
Education	375	2,934	468	37,585	3 19311 2018 11/2 () 3 COM 17 ros 1920 C
Sharing Solidarity	62	883	71	1,871	1 10 ragan 1 - 308 315 00 A 128.9
Emergency response	13	87	32	2,300	1 Norest Charles 20 20051001 Axes 1
Total T Volunteering Activities 2019	1,615	13,236	3,292	125,209

*To complete the social work that MAPFRE carries out through Fundación MAPFRE, please consult the Fundación MAPFRE Annual Report 2019, available at www.fundacionmapfre.com

ਹੈ 82

ECONOMIC FOOTPRINT

MAPFRE's insurance activity generates a direct economic impact through the constant flow of transactions made, among which the following are highlighted:

ITEMITS	2019
Benefits paid (1)	16,120.2
Payments to providers (2)	7,761.6
Wages and salaries, and other (3)	1,504.4
Activity subtotal	25,386.2
Dividends (4)	844.1
Shareholders subtotal	844.1
Net income tax payment	430.8
Social security	257.0
Public administrations subtotal	687.8
Interest paid	69.8
Financing subtotal	69.8
Total	26,987.8

程度网站	2019
Third-party funds under management (5)	40,663.0
Total investments	47,363.4
Financial investments	44,995.9
Fixed income	39,443.7
Issued by governments	30,088.8
Other fixed-income securities	9,354.9
Other financial investments	5,552.2
Real estate investments (6)	1,323.4
Other investments	1,044.1

Figures in million euros

(1) Benefits paid and related expenses of direct insurance and accepted reinsurance.
(2)
(3) Wages and salaries amounted to 1,251.1 million euros in 2019 (1,257.8 million euros in 2018).
(4) Dividend payments made during the fiscal year.
(5) Technical provisions for Life, pension funds and managed portfolios, before shadow accounting adjustments.
(6) Excluding real estate for own use.

Net payments for tax on profits per country:

Country	2019
IBERIA	-143.1
ESPAIN	-139.9
PORTUGAL	-3.2
BRAZIL	-192.5
LATAM NORTH	-8.2
MEXICO	-0.6
PANAMA	0.0
DOMINICAN REPUBLIC	-6.5
EL SALVADOR
HONDURAS	-1.0
GUATEMALA	0.3
COSTA RICA
NICARAGUA	-0.3
LATAM SOUTH	-68.6
COLOMBIA	-14.4
ARGENTINA	-5.0
CHILE	-38.6
PERU	-7.2
URUGUAY	-0.9
PARAGUAY	-1.9
ECUADOR	-0.5

COUNTRY	2011
NORTH AMERICA	14.9
UNITED STATES	15.2
VERTI USA
PUERTO RICO	-0.2
EURASIA	-3.1
TURKEY	1.7
MALTA	-2.3
GERMANY	13
ITALY
PHILIPPINES
INDONESIA	-3.8
CHINA
TOTALINSURANCE	-400.5
GLOBAL RISKS
ASISTENCIA	-6.3
MAPFRE RE	-36.8
HOLDING, ELIMINATIONS AND OTHER	12.8
MAPFRE VENEZUELA
MAPFRE S.A.	-430.8

Figures in million euros

Corporate income tax paid by region:

Geographic area	2019
IBERIA	17.3%
LATAM North	24.8%
LATAM South	23.2%
Brazil	31.4%
North America	26.4%
Reinsurance	25.0%
Total for MAPFRE GROUP	25.3%

CNMV Oficina: ROD MADRID Registro de Entrada Nº: 2020018771 Fecha de registro: 2020-02-12 01:18:30

Table of Contents GRI 7.4.

[GR] 102—55]

Data responding to GRI Indicators and the requirements established by Directive 2014/95 EUA on the disclosure of non-financial and diversity information, as well as its respective transpositions in Spain (Law 11/2018 of December 28 ) and in Italy (Legislative Decree 254/16 NFI) was obtained through Sygris, the Group's social responsibility data-management tool.

Standard and Content GRI	PAGE No. / INFORMATION	Other reterences
GRI 101. Foundation 2016
GRI 102. General contents 2016
1. Organizational profile
102-1. Name of the organization	MAPFRE P.7
102-2. Activities, brands, products, and services	2. MAPFRE Group P.7 3. Business model, strategy, and performance P.17 3.4. Business performance P.24 6.1 Financial Dimension P. 73 7.3 Note 7 - Social and environmental products and services P. 170-171 7.3 Note 9: Our footprint: social value, shared value P.180-186	SDG 8,9,11
102-3. Location of headquarters	2. MAPFRE Group P.7 Madrid (Spain)
102-4. Location of operations	2. MAPFRE Group P.7 2.2 Deployment P.10
102-5. Ownership and legal form	2. MAPFRE Group P.7
102-6. Markets served	2.2 Deployment P.10 3. Business model, strategy, and performance P.17 3.4. Business performance P.24 6.1 Financial Dimension P.73	SDG 8,17
102-7. Scale of the organization	2.2 Deployment. P.10 2.3 Key financial figures. P.13 6.1 Financial Dimension P.73 6.3 Human Dimension - General data P.91	SDG 8,17
102-8. Information on employees	6.3 Human Dimension - General information / Diversity
and other workers	management. P.91, 94-97	SDG 8,10
102-9. Supply chain	6.2 Productive Dimension - Providers P.80	ડાંત દેશના પાકની ખેત
102-10. Significant changes to the	3.4.1 General information - relevant issues P.24
organization and its supply chain	6.2 Productive Dimension - Providers P.86
102-11. Precautionary principle or approach	4.3 Ethical Behavior: main prevention and compliance measures P.51 5. Risks and Opportunities P.62	SDG 13

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	7.1 Bases of preparation and presentation of the report. P.148
102-12. External initiatives	6.6 Social and Relational Dimension / Commitments to sustainability. P.138-141 See mapfre.com - International Commitments	SDG 16,17 Principles 1-10 of the Global Compact
102-13. Membership of associations	6.5 Social and Relational Dimension: relationship channels with stakeholders; Commitments to sustainability. P.138-141 See mapfre.com - International Commitments	SDG 17
2. Strategy
102-14. Statement from senior decision-makers	1. Letter from the chairman and CEO. P.4 4.1 Governance System. P.39
102-15. Key impacts, risks, and opportunities	2.4 Regulatory framework and environment. P.14 3.3 Future outlook. P.21-24 5. Risks and Opportunities P.62, 64-72 7.2 Materiality. P.150	SDG 8,17
3. Integrity and ethics
102-16. Values, principles, standards, and norms of behavior	3.1 Business model. P.17-24 4.1 Governance System. P.39 4.2 Sustainability by conviction, Code of Ethics and Conduct P.48 4.3 Ethical Behavior: main prevention and compliance measures P.51-62	Principles 1-10 of the Global Compact SDG 16,17
102-17. Mechanisms for advice and concerns about ethics	4.3 Ethical Behavior: main prevention and compliance measures P.51-62 6.6 Social and relational dimension: Measures adopted to guarantee respect for Human Rights P.141-144 7.3. Note 8 - Global Compact Principles and measures adopted to prevent and comply with MAPFRE's Human Rights measures. P. 178-179 https://www.mapfre.com/corporate/responsible- business/definition-objectives-social-responsibility/code- ethics/ /	SDG 16, 17 Principles 1-10 of lthe Global Compact
4. Governance
102-18. Governance structure	2. Mapfre Group. P.7 4.1 Governance System. P.39 4.2 Sustainability by conviction P.48	SDG 16
102-19. Delegating authority	4.1 Governance System. P.39 4.2 Sustainability by conviction P.48 Section C.2.1. of the Annual Corporate Governance Report (ACGR).	Principles 1-10 of the Global Compact
102-20. Executive-level responsibility for economic, environmental, and social topics	4.1 Governance System. P.39 4.2 Sustainability by conviction P.48 Section C.2.1. of the Annual Corporate Governance Report (ACGR).	Principles 1-10 of the Global Compact

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102-21. Consulting stakeholders on economic, environmental, and social topics	7.2 Materiality. P.150	Principles 1-10 of the Global Compact SDG 16
102-22. Composition of the highest governance body and its committees	4.1 Governance System. P.39 6.3 Human Dimension - Diversity and inclusion P.94-97	SDG 5,16
102-23. Chair of the highest governance body	4.1 Governance System. P.39
102-24. Nominating and selecting the highest governance body	Sections C.1.16., C.1.5. and C.1.6. of the Annual Corporate Governance Report (ACGR).	SDG 5,16
102-25. Conflicts of interest	Sections D.6. and A.1. to A.8. of the Annual Corporate Governance Report (ACGR).	SDG 16
102-26. Role of highest governance body in setting purpose, values, and strategy	4.1 Governance System. P.39 Section C.2.1. of the Annual Corporate Governance Report (ACGR). Title I, Chapter II of the Board of Directors Regulation of MAPFRE: Duties and Responsibilities of the Board	SDG 16, 17
102-27. Collective knowledge of highest governance body	Sections C.1.35 of the Annual Corporate Governance Report (ACGR).
102-28. Evaluating the highest governance body's performance	Section C.1.17. of the Annual Corporate Governance Report (ACGR). Given its relevance, we refer to the Board of Directors Regulation from MAPFRE and published on the corporate website. Title I. Board of Directors and Title II. Committees and Steering Committees.	SDG 16
102-29. Identifying and managing economic, environmental, and social impacts	5. Risks and Opportunities. P.62-72 7.2 Materiality. P.150 Sections E.1., E.2. and F.1. of the Annual Corporate Governance Report (ACGR). Given its relevance, we refer to the Board of Directors Regulation published on the corporate website. Chapter IV: Risk and Compliance Committee	Principles 1-10 of the Global Compact SDG 16
102-30. Effectiveness of risk management processes	5. Risks and Opportunities P.62-72 Sections E.2. and E.6. of the Annual Corporate Governance Report (ACGR). Given its relevance, we refer to the Board of Directors Regulation published on the corporate website. Chapter IV: Risk and Compliance Committee	Principles 1-10 of the Global Compact
102-31. Review of economic, environmental, and social topics	5. Risks and Opportunities P.62-72 7.2 Materiality. P.150 Section E.1. of the ACGR. of the Annual Corporate Governance Report (ACGR). Given its relevance, we refer to the Board of Directors Regulation published on the corporate website. Chapter IV: Risk and Compliance Committee	Principles 1-10 of the Global Compact

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Standard and Content GR	PAGE No. / INFORMATION	Other references
102-32. Highest governance body's role in sustainability reporting	7.1 Bases of preparation and presentation of the report. P. 148 Section C.2.1. of the Annual Corporate Governance Report (ACGR). Given its relevance, we refer to the Board of Directors Regulation published on the corporate website. Title I Chapter I: Duties and Responsibilities of the Board	Principles 1-10 of the Global Compact
102-33. Communicating critical	4.3 Ethical Behavior: main prevention and compliance	Principles 1-10 of
concerns	measures P.51-62	the Global Compact
102-34. Nature and total number of critical concerns	7.3 Note 1 - Grievances and complaints. P.154 Code of Ethics and Conduct https://www.mapfre.com/corporate/responsible- business/definition-objectives-social-responsibility/code- ethics/ Given its relevance, we refer to the Board of Directors Regulation published on the corporate website. Title l Chapter I: Duties and Responsibilities of the Board
102-35. Remuneration policies		Law 11/2018: Questions related to personnel: employment
102-36. Process for determining remuneration	4.1 Governance System. P. 39 6.3 Human Dimension - Remuneration and Recognition Annual report on directors' remuneration P. 106-109 https://www.mapfre.com/corporate/institutional- investors/general-shareholders-meeting/	Law 11/2018: Questions related to personnel: employment Principles 1, 2, 3, 4, 6 and 10 of the Global Compact
102-37. Stakeholders' involvement in remuneration		SDG 16 Principles 1, 2, 3, 4, 6 and 10 of the Global Compact SDG 16
102-38. Annual total compensation ratio	The annual total compensation ratio in Spain is 19.91. This ratio is calculated at Spain level, where the Company's headquarters is located, without including the corporate areas or business units (MAPFRE RE, MAPFRE GLOBAL RISKS Y MAPFRE ASISTENCIA) and is	Principles 1, 2, 3, 4, 6 and 10 of the Global Compact

Standard and Content GR	GE No. / Informatio
	taken as the ratio of the total compensation (fixed remuneration plus target variable remuneration) paid to the highest paid individual in the Company and the median of the annual total compensation of all full-time employees, excluding the highest-paid individual.
	The resulting data is considered reasonable taking the current workforce structure into account.
	Spain represents 27% of the Group's workforce.
	The percentage increase in annual total compensation ratios is 17.57.	Principles 1,2, 3, 4,6 and 10 of the Global Compact
	This ratio is calculated for Iberia territorial employees located in Spain, as this is where the Company's headquarters are located, not including corporate areas or business units (MAPFRE RE, MAPFRE GLOBAL RISKS AND MAPFRE ASISTENCIA), as the ratio between the increase in the total annual compensation (fixed
102-39. Percentage increase in annual total compensation ratio	remuneration plus target variable remuneration) of the highest paid person of the Company and the percentage increase in the median total annual compensation (fixed remuneration plus target variable remuneration) of all employees, taking full-time annualized compensation into account, excluding the highest paid person.
	The Iberia territory in Spain represents 27% of the Groups total workforce.
5. Participation of stakeholders
102-40. List of stakeholder groups	6.6 Social and Relational Dimension - Management of relationships with Stakeholders. P.132-133	Principles 1-10 of the Global Compact
102-41. Collective bargaining agreements	6.6 Social and Relational Dimension - Management of relationships with Stakeholders. Relationship channels. P. 136-138	Principles 1, 2, 3, 4, and 6 of the Global Compact
102-42. Identifying and selecting stakeholders	6.6 Social and Relational Dimension - Management of relationships with Stakeholders. P.132-133	SDG 8
102-43. Approach to stakeholder engagement	6.6 Social and Relational Dimension - Management of relationships with Stakeholders. Relationship channels. P.132-141	Principles 1-10 of the Global Compact
102-44. Key topics and concerns raised	7.2 Materiality. P.150 6.6 Social and Relational Dimension - Management of relationships with Stakeholders. Relationship channels P.133-141 7 2 Materiality, P. 150	Global Compact Principles 1-10

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Standard and Content GRI	PAGE No. / INFORMATION	Other references
6. Practices for drawing up reports	的一面和一路的
102-45. Companies included in the consolidated financial statements	7.1 Bases of preparation and presentation of the report. P.148 Consolidated annual accounts and management report 2019 https://www.mapfre.com/corporate/institutional- investors/financial-information/annual-reports/
102-46. Defining report content and topic Boundaries	7.1 Bases of preparation and presentation of the report. P.148
102-47. List of material topics	7.2 Materiality. P.150	Principles 1-10 of the Global Compact
102-48. Restatements of information	7.1 Bases of preparation and presentation of the report. P. 148 7.6. External Assurance report. P.208
102-49. Changes in reporting	7.1 Bases of preparation and presentation of the report. P.148 7.2. Materiality P.150
102-50. Reporting period	7.1 Bases of preparation and presentation of the report. P.148
102-51. Date of most recent report	7.1 Bases of preparation and presentation of the report. P.148 https://www.mapfre.com/corporate/responsible- business/annual-reports/
102-52. Reporting cycle	Annual
102-53. Contact point for questions	7.1 Bases of preparation and presentation of the report.
regarding the report	P.148
102-54. Claims of reporting in	7.1 Bases of preparation and presentation of the report.
accordance with the GRI Standards	P.148
102-55. GRI content index	7. Supplementary Information - Index of Indicators. P.187-203
102-56. External assurance	7.6 External Assurance report. P.208
GRI 103 - Focus on management 2016
103-1 Explanation of the material topic and its Boundary	6.6 Social and Relational Dimension - Management of relationships with Stakeholders. P.136-141 7.2 Materiality. P.150	Principles 1-10 of the Global Compact
103-2 The management approach and its components	6.6 Social and Relational Dimension – Management of relationships with Stakeholders. P.136-141 7.2 Materiality. P.150	SDG 16
103-3 Evaluation of the management approach	7.2 Materiality. P.150
GRI 201. Economic performance 2016
201-1 Direct economic value generated and distributed	2.3 Key financial figures. P.13 3.4.2. Information by Business Unit P.25 6.1 Financial Dimension P.73 7.4. Nota 9- Our Footprint: social value, shared value. P.178-186	Principles 1-10 of the Global Compact SDG 1,2,5,7,8 and 9

	PAGE Not / INFORMATION	other references
	Consolidated annual report 2019 https://www. mapfre.com/corporate/institutional-investors/general- -meeting/
201-2-Financial implications and other risks and opportunities due to climate change	5. ESG Risks and Opportunities P.62-72 6.5. Natural Dimension - Climate Change Action Strategy P.128 7.3 Note 7 - Social and environmental products and services. P.170-177 Consolidated annual report 2019 https://www. https://www.mapfre.com/corporate/institutional- investors/general-shareholders-meeting/	Principles 7, 8 and 9 of the Global Compact SDG 13
201-3- Defined benefit plan obligations and other retirement plans	6.3 Human Dimension - Remuneration and Recognition P.106-109	Principles 1, 6 and 10 of the Global Compact
201-4- Financial assistance received from government	The public subventions received do not represent a significant amount as a percentage of Group total revenues.
GRI 202. Market presence 2016
	MAPFRE applies the principle of equal opportunities and SDG 8 non-discrimination to all processes of selection,
202-1 Ratios of standard entry level wage by gender compared to local minimum wage	promotion and mobility, with the qualifications, merits, value and professional capacity of the candidates, the criteria to be taken into account in order to perform objectively the chose. In MAPFRE, the salary ratio of the initial standard category is established by level and the nature of the function to be developed, and does not distinguish by gender. Normally, the ratio of the initial standard category is determined by a Collective Agreement (sectorial or company). In general, in those countries where there is a local minimum wage, the MAPFRE entry-level wage is higher. For example, in Spain, headquarters of the Group, the quotient is 1.27.
202-2 Proportion of senior management hired from the local community	6.3 Human Dimension -- Internal Mobility P.100	SDG 8
GRI 203: Indirect Economic Impacts

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GRI 204. Acquisition practices 2016 204-1 Proportion of spending on local 6.2 Productive Dimension - Providers P.62-80 providers SDG 1,5, 8 GRI 205. Anti-corruption 2016 4.2 Sustainability by conviction P.48 related to corruption 4.3 Ethical Behavior: main prevention and compliance measures P.51-62 205-2- Communication and training 5. Risks and Opportunities P.62-72 SDG 16 about anti-corruption policies and 7.3 Note 8 - Global Compact Principles and measures procedures adopted to prevent and comply with MAPFRE's Human Rights P.178-179 In 2019, there were no significant corruption cases in the 205-3- Confirmed incidents of Group and, in those detected, all of low relevance, the corruption and actions taken internal control mechanisms functioned correctly, facilitating the detection of same and the application of the corresponding measures. GRI 206. Anti-competitive Behavior 2016 206-1 Legal actions for anti- In 2019, no legal actions were taken for anti-competitive competitive behavior, anti-trust, and behavior, anti-trust, and monopoly practices. monopoly practices SDG 16 GRI 301. 2016 Materials and the same of confident of the contraction of every of 301-1 Materials used by weight or Compact 7.3 Note 6 - Environmental information P.165-169 volume SDG 8, 12 of the Global Compact 301-2- Recycled input materials used 7.3 Note 6 -- Environmental information. P.165-169 SDG 8, 12 an de la provinsi GRI 302. Electricity 2016 302-1- Energy consumption within 7.3 Note 6 - Environmental information. P.165-169 the organization	Standard and Content GRI	PAGE No. / INFORMATION	Other references

			Principle 10 of the Global Compact

	205-1- Operations assessed for risks		Principle 10 of the Global Compact



			Principle 10 of the Global Compact

			Principles 7, 8, 9 and 12 of the Global
			Principles 7, 8 and 9

Standard and Content GRI	THE PAGE No. / INFORMATION	Other references
302-2 Energy consumption outside of the organization 302-3- Energy intensity		Principles 7, 8 and 9 of the Global Compact
302-4- Reduction of energy consumption		SDG 7,8,12 and 13
GRI 303. Water 2016
303-5 - Water consumption	7.4 Nota 6 - Environmental information. P.165-169	Principles 7, 8 and 9 of the Global Compact ODS 6
GRI 304. Biodiversity 2016
304-1 Operational sites owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas	6.5 Natural Dimension - Biodiversity Preservation P.131 MAPFRE does not have work centers in protected areas or in unprotected high biodiversity areas.	Principles 7, 8 and 9 of the Global Compact SDG 6,14 and 15
GRI 305. Emissions 2016
305-1 Direct (Scope 1) GHG emissions 305-2 Energy indirect (Scope 2) GHG emissions		Principles 7, 8 and 9 of the Global Compact
305-3- Other indirect (Scope 3) GHG emissions	7.3 Note 6 - Environmental information. P.165-169	SDG 2,3,12,13, 14 and 15
305-4 GHG emissions intensity		Principles 7, 8 and 9 of the Global
305-5- Reduction of GHG emissions	6.5 Natural Dimension - Climate change action strategy P. 128-131 7.3 Note 6 - Environmental information. P.165-169	Compact SDG 13, 14, 15
GRI 306. Effluents and waste 2016	A STATION STARTS
306-2- Wastes by type and disposal	7.3 Note 6 - Environmental information. P.165-169	Principles 7, 8 and 9 of the Global Compact

Standard and Content GRI	PAGE No. / INFORMATION	Other references
306-3- Significant spills	During 2019, no spills or leaks in establishments or facilities where MAPFRE carries out its activities were registered.	Principles 7, 8 and 9 of the Global Compact SDG 3,6,12,14 and 15
306-5 Water bodies affected by water discharges and/or runoff	The activity carried out by MAPFRE is mainly administrative and, by its nature, has a low environmental impact. This year no significant impacts have been identified in this area	Principles 7, 8 and 9 of the Global Compact SDG 6, 15
GRI 307. Environmental compliance 2016
307-1 Non-compliance with environmental laws and regulations	The company does not have any record of having received a significant environmental fine in 2019.	Principles 7, 8, 9 and 10 of the Global Compact SDG 16
GRI 308. Provider environmental evaluation 2016
308-1. New providers that were screened using environmental criteria 308-2- Negative environmental impacts in the supply chain and actions taken	6.2 Productive Dimension - Providers ESG provider approval P.86	Principles 7, 8, 9 and 10 of the Global Compact
GRI 401. Employment 2016
401-1 - New employee hires and employee turnover	6.3 Human Dimension - General information / Diversity management. P.92-94 7.3 Note 2 - New hires and departures. P.155 For more information see People and Organization 2019 report	Principles 1, 2, 3, 6 and 10 of the Global Compact
401-2- Benefits provided to full-time employees that are not provided to temporary or part-time employees	6.3 Human Dimension - Management model/ Remuneration and Recognition/Work-life balance and Well-being P.110-112 For more information see People and Organization 2019 report	Principles 1, 2, 3, 6 and 10 of the Global Compact SDG 3,5 and 8
401-3 Parental leave	6.3 Human Dimension - Work-life balance and Well- being P.110-111 For more information see People and Organization 2019	Principles 1, 2, 3, 6 and 10 of the Global Compact SDG 5,8

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Standard and Content GR	Page No. / Information	Other references
GRI 402. Labor/Management Relations 2016
402-1 - Minimum notice periods regarding operational changes	6.5 Social and Relational Dimension - Relationship channels with workers' representatives P.137	Principles 1, 2, 3, and 6 of the Global Compact
GRI 403. Occupational health and safety 2016		SDG 8
403-1 - Occupational health and safety management system		Principles 1, 2, 3, 4, 5, 6 and 8 of the Global Compact
403-2 - Hazard identification, risk assessment, and incident	6.3 Human Dimension P.111-113	SDG 3, 8
investigation 403-3 Occupational health services	For more information see People and Organization 2019 report
403-4 - Worker participation, consultation, and communication on occupational health and safety
403-5 Worker training on occupational health and safety 403-6 Promotion of worker health
403-7 Prevention and mitigation of occupational health and safety impacts directly linked by business relationships	6.2 Productive Dimension - Providers ESG provider approval P.88-89
403-8 Workers covered by an occupational health and safety management system	6.3 Human Dimension: Management model / employee experience / conciliation and well-being P.110-111
403-9 Work-related injuries 403-10 Work-related ill health	6.3 Human Dimension: Management model / employee experience / conciliation and well-being P.111-113 7.3 Note 5 - Work related accident data P.164
GRI 404. Training 2016
404-1 - Average hours of training per year per employee	6.3 Human Dimension: Management model / Learning and knowledge management. P.98-103 For more information see People and Organization 2019 report	Principles 1, 2, 3, 4, 6 and 8 of the Global Compact SDG 4,5 and 8
404-2 Programs for upgrading employee skills and transition assistance programs	6.3 Human Dimension: Management model / Talent/ Internal Mobility / Learning and knowledge management P.98-103	Principles 1, 2, 3, 4, 6 and 8 of the Global Compact SDG 8
	For more information see People and Organization 2019 report

	6.3 Human Dimension - Management model /	Principles 1, 2, 3, 4,
	Remuneration and recognition/ conciliation and well-	6 and 8 of the
404-3 - Percentage of employees	being P.107-108	Global Compact
receiving regular performance and		SDG 5,8 and 10
career development reviews	For more information see People and Organization 2019
	report
GRI 405. Diversity and equal opportunities 2016
	4. 1 Governance System - Diversity and Experience P.43	Principles 1, 2, 3, 4
	4.2 Ethics and Sustainability P.48	and 6 of the Global
	6.3 Human Dimension - Management model /Diversity	Compact
405-1- Diversity of governance	and Inclusion P.91, 94-97
bodies and employees		SDG 5, 8
	For more information see People and Organization 2019
	report
	6.3 Human Dimension - Managing	Principles 1, 2, 3, 4
405-2 - Ratio of basic salary and	Diversity/Remuneration and Recognition P.106-109	and 6 of the Global
remuneration of women to men	7.3 Note 3 and 4 - Remunerations P.157-164	Compact
	For more information see People and Organization 2019
	report	SDG 5, 8, 10
GRI 406- Non-discrimination 2016
	4.2 Sustainability by conviction P.48	Principles 1, 2, 3, 4,
	4.3. Ethical Behavior: main prevention and compliance	6 and 10 of the
	measures P.51-62	Global Compact

406-1 - Incidents of discrimination	6.6 Social and Relational Dimension : Human Rights and	SDG 5,8, 16
and corrective actions taken	Agenda 2030 ( SDG) P.141-147

	7.3 Note 8 - Global Compact Principles and measures
	adopted to prevent and comply with MAPFRE's Human Rights measures P.178-179
GRI 407. Freedom of association and collective bargaining 2016
		Principles 1, 2, 3, 4,
	4.2 Sustainability by conviction P.48	6 and 10 of the
	4.3. Ethical Behavior: main prevention and compliance measures P.51-62	Global Compact
407-1- Operations and providers in	6.6 Social and Relational Dimension - Relationship
	channels / Employees and their legal representatives /	SDG 8
which the right to freedom of association and collective bargaining may be at risk	Human Rights and Agenda 2030( SDG) P.136-138, 141-
	144
	7.3 Note 8 - Global Compact Principles and measures
	adopted to prevent and comply with MAPFRE's Human
	Rights measures P.178-179

Standard and Content GRI	Page No. / INFORMATION	Other references
408-1 Operations and providers at significant risk for incidents of child abor	4.2 Sustainability by conviction P.48 4.3. Ethical Behavior: main prevention and compliance measures P.51-62 6.2 Productive Dimension - Providers P.86 6.5 Social and Relational Dimension: Human Rights and Agenda 2030( SDG) P.141-413	Principles 1, 2, 3, 5, 6 and 10 of the Global Compact SDG 8, 16
	7.3 Note 8 - Global Compact Principles and measures adopted to prevent and comply with MAPFRE's Human Rights measures P.178-179, 180-186
GRI 409. Forced or compulsory labor 2016
409-1 Operations and providers at significant for incidents of forced or compulsory labor	4.2 Sustainability by conviction P.48 4.3. Ethical Behavior: main prevention and compliance measures P.51-62 6.2 Productive Dimension - Providers P.86 6.5 Social and Relational Dimension: Human Rights and Agenda 2030( SDG) P.141-147 7.3 Note 8 - Global Compact Principles and measures adopted to prevent and comply with MAPFRE's Human Rights measures P.178-179, 180-186	Principles 1, 2, 3, 4, 6, 8 and 10 of the Global Compact SDG 8
GRI 410. Security practices 2016
410-1 Security personnel trained in human rights policies or procedures	4.2 Sustainability by conviction P.48 4.3. Ethical Behavior: main prevention and compliance measures P.51-62 6.2 Productive Dimension - Providers P.86 6.6 Social and Relational Dimension: Human Rights and Agenda 2030( SDG) P.141-147 7.3 Note 8 - Global Compact Principles and measures adopted to prevent and comply with MAPFRE's Human Rights measures. P.178-179	Principles 1, 2, 3, and 10 of the Global Compact SDG 16
GRI 411. Rights of indigenous peoples 2016
411 - 1 Incidents of violations	4.3. Ethical Behavior: main prevention and compliance measures P.51-62 6.6 Social and Relational Dimension: Human Rights and Agenda 2030( SDG) P.141-147	Principles 1, 2, 3, and 10 of the Global Compact
involving rights of indigenous peoples	7.3 Note 8 - Global Compact Principles and measures adopted to prevent and comply with MAPFRE's Human Rights measures. P.178-179 There is no record of any incidents of violations involving rights of indigenous people.	SDG 2
GRI 412. Human Rights Assessments 2016
412-1 Operations that have been subject to human rights reviews or impact assessments	6.6 Social and Relational Dimension: Human Rights and Agenda 2030( SDG) P.141-147 7.2 Materiality. P.150	Principles 1-10 of the Global Compact

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Standard and Content GRI	PAGE No. / INFORMATION	other reterences
	7.3 Note 8 - Global Compact Principles and measures adopted to prevent and comply with MAPFRE's Human Rights measures P.178-179
412-2 Employee training on human rights policies or procedures	6.6 Social and Relational Dimension: Human Rights and Agenda 2030( SDG) - P.141-147 7.3 Note 5 – Global Compact Principles and measures adopted to prevent and comply with MAPFRE's Human Rights measures P.178-179	Principles 1-10 of the Global Compact
412-3 Significant investment agreements and contracts that include human rights clauses	4.2 Sustainability by conviction P.48 4.3. Ethical Behavior: main prevention and compliance measures P.51-62 6.2 Productive Dimension - Providers P.86 6.6 Social and Relational Dimension: Human Rights and Agenda 2030( SDG) P.141-147 7.3 Note 8 - Global Compact Principles and measures adopted to prevent and comply with MAPFRE's Human Rights measures P.178-179	Principles 1, 2, 3, 4, 5, 6, 7 and 10 of the Global Compact
GRI 413. Local communities 2016
413-1 Operations with local community engagement, impact assessments and development programs	6.3 Human Dimension - Employee Experience Volunteering P.114-115 6.6 Social and Relational Dimension: Human Rights and Agenda 2030( SDG) P.141-147 7.3 Note 8 - Global Compact Principles and measures adopted to prevent and comply with MAPFRE's Human Rights measures P.178-178 www.fundacionmapfre.org For more information see People and Organization 2019 report	Principles 1, 2, 3, 4, 5, 6, 7 and 10 of the Global Compact
413-2 Operations with significant actual and potential negative impacts on local communities	6.3 Human Dimension - Employee Experience Volunteering P.114-115 6.6 Social and Relational Dimension: Human Rights and Agenda 2030( SDG) P.141-147 7.3 Note 8 – Global Compact Principles and measures adopted to prevent and comply with MAPFRE's Human Rights measures P.178-178 www.fundacionmapfre.org For more information see People and Organization 2019 report	Principles 1, 2, 3, 4, 5, 6, 7 and 10 of the Global Compact SDG 1, 2
GRI 414. Provider Social Assessment 2016
414-1 New providers that were screened using social criteria	6.2 Productive Dimension - Providers P.86	Principles 1-10 of the Global Compact

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Standard and Content GRI	PAGE No. / INFORMATION	Other references
414-2 Negative social impacts in the supply chain and actions taken	6.6 Social and Relational Dimension: Human Rights and Agenda 2030( SDG) P.141-147	SDG 5, 8 and 16
GRI 415. Public policies 2016
415-1 Political contributions	4.2 Sustainability by conviction P.49 4.3. Ethical Behavior: main prevention and compliance measures P.52-55 Institutional Relations, Institutional, Business and Organizational Principles of the MAPFRE Group https://www.mapfre.com/corporate/institutional- investors/corporate-governance/	Principle 10 of the Global Compact SDG 16
GRI 417. Marketing and labeling 2016
417-1 Requirements for product and service information and labeling	6.6 Social and Relational Dimension: Institutional supervisors and regulatory bodies P.136	SDG 12
417-2 Incidents of non-compliance concerning product and service information and labeling	Varies according to local legislation. 4.3. Ethical Behavior: Grievances and complaints. P.51, 56-60 7.3 Note 1 - Grievances and complaints P.154	Principle 10 of the Global Compact SDG 12, 16
417-3 Incidents of non-compliance concerning marketing communications	No significant cases of non-compliance with regulations or voluntary codes assumed by the company were reported in 2019.	Principle 10 of the Global Compact SDG 16
GRI 418. Client privacy 2016
418-1 Substantiated complaints concerning breaches of client privacy and losses of client data	6.4 Intellectual Dimension - Cybersecurity P.118-120	Principles 1, 2, 3, and 10 of the Global Compact SDG 16
GRI 419. Environmental compliance 2016
419-1 Non-compliance with laws and regulations in the social and economic area	4.2 Sustainability by conviction P.48	Principles 1, 2, 3, and 10 of the Global Compact

GR! Indicators	Page / Information
Impact of products and services	A Canada Cara Cara Cara Cara Cara Cara Cara Cara Cara Cara Cara Cara Cara Cara Cara Cara Cara Cara Cara Cara Cara Cara Cara Cara Cara Cara Cara Cara Cara Cara Cara Cara Cara

202

F2J	Policies with specific environmental and social components applied to business lines.	4.1 Governance System. P.39 4.2 Sustainability by conviction P.48 5. Risks and Opportunities P.64 6.3 Human Dimension P.91 6.5 Natural Dimension - Strategic environmental model. P.123 7.3 Note 7 - Social and environmental products and services. P.170-177
F22	Procedures for assessing and screening environmental and social risks in business lines.	5. Risks and Opportunities P.64 6.5 Natural Dimension - Strategic environmental model. P.128
FS3	Processes for monitoring clients' implementation of and compliance with environmental and social requirements included in agreements or transactions with clients.	4.2 Sustainability by conviction P.48 5. Risks and Opportunities P.64 6.5 Natural Dimension - Strategic environmental model. P.123 7.3 Note 7 - Social and environmental products and services. P.170-177
EST	Process(es) for improving staff competency to implement the environmental and social policies and procedures as applied to business lines.	4.2 Sustainability by conviction P.48 4.3. Ethical Behavior P.51 5. Risks and Opportunities P.64 6.3 Human Dimension - the continuing talent challenge P.98 6.5 Natural Dimension - Strategic environmental model. Biodiversity P.131
દર્શકે	Interactions with clients, investors and business partners regarding environmental and social risks and opportunities.	5. Risks and Opportunities P.64 6.5 Natural Dimension - Strategic environmental model. P.128 7.2 Materiality. P.150
	Product portfolio
ન્ડર્	Percentage of the portfolio for each business line by specific region, size and sector.	3.4.2 Information by Business Unit. P.24
FS7	Monetary value of products and services designed to deliver a specific social benefit for each business line broken down by objective.	7.3 Note 7 - Social and environmental products and services. P.170-177
F28	Monetary value of products and services deliver specific designed to a environmental benefit for each business line broken down by objective.
Auditing
ES9	Coverage and frequency of audits to assess implementation of environmental and social policies and risk assessment procedures.	5. Risks and Opportunities P.64 6.5 Natural Dimension - Strategic environmental model. P.123 7.1 Bases of preparation and presentation of the report. P.148 7.3 Note 6 – Environmental information: Environmental Audits. P.165

203

FS10	Percentage and number of companies held in the institution's portfolio with which the reporting organization has interacted on environmental or social issues.	This information is not available as of the close of this report
EST J	Percentage of assets subject to positive and negative environmental or social screening.
Community
ECT 3	Access points in low-populated or economically disadvantaged areas by type.	4.2 Sustainability by conviction P.48 7.3 Note 7 - Social and environmental products and services. Annual report of Fundación MAPFRE 2019 P.170-177
FS14	Initiatives to improve access to financial services for disadvantaged people
	Client health and safety
ESTE	Policies for the fair design and sale of financial products and services	4.2 Sustainability by conviction P.48 7.3 Note 7 - Social and environmental products and services. P.170-177
	Marketing communications
ESTE	Initiatives to improve literacy and financial education by type of beneficiary	Annual report of Fundación MAPFRE 2019

7.5. Correspondence of GRI content and non-financial information status (Law 11/2018 of December 28)

Non-financial information - Law 11/2018, of December 28		Reporting Criteria - GRI Standards	Pages
General topics "
	A brief description of the group's business model	GRI 102-2 GRI 102-7	7-10, 17-20
Business model	Markets served	GRI 102-3 GRI 102-4 GRI 102-6	7-12
	Organizational objectives and strategies	GRI 102-14	17-23
	Main factors and trends that may affect their future evolution	GRI 102-14 GRI 102-15	14-16, 62-76
	Reporting framework	GRI 102-54	148-150
General	Materiality Principle	GRI 102-46 GRI 102-47	150
	Description of the policies that apply	GRI 103-2	47
Management approach	The results of these policies	GRI 103-2	47, 49
	The main risks related to these issues linked to the activities of the group	GRI 102-15	64-66
Environmental issues	の中古車 - 2017
	Management Approach: policies and risks	GRI 102-15 GRI 103-2	63, 123
	Current and foreseeable effects of the company's activities on the environment and, where appropriate, health and safety	GRI 102-15 GRI 103-2	128
Environmental	Environmental assessment or certification procedures	GRI 103-2	125, 165
management	Resources devoted to the prevention of environmental risks	GRI 103-2	ી રિક
	Application of the precautionary principle	GRI 102-11	124
	Quantity of provisions and guarantees for environmental risks	GRI 103-2	165
Contamination	Measures to prevent, reduce or repair carbon emissions (also includes noise and light pollution)	GRI 103-2	126-129
Circular economy and waste prevention and management	Prevention, recycling, reuse, other forms of waste recovery and disposal measures	GRI 103-2 GRI 306-1 GRI 306-2	126-129
	Actions to combat food waste	GRI 103-2 GRI 306-2	130
Sustainable use of resources	Water consumption and water supply in accordance with local limitations	GRI 303-5 (version 2018)	169
	Consumption of raw materials and measures taken to improve the efficiency of their use	GRI 301-1 GRI 301-2 GRI 301-3	125-127, 168-169
	Direct and indirect consumption of energy	GRI 302-1 GRI 302-3	168-169
	Measures taken to improve energy efficiency	GRI 302-4	125-127
	Use of renewable energies	GRI 302-1	168-169

	Non-financial information - Law 11/2018, of December 28	Reporting Criteria - GRI Standards	Pages
	Significant elements of greenhouse gas emissions generated as a result of the company's activities	GRI 305-1 GRI 305-2 GRI 305-3 GRI 305-4	128-129, 166-167
Climate change	Measures taken to adapt to the consequences of climate change	GRI 201-2	128
	Voluntary medium- and long-term reduction targets for reducing greenhouse gas emissions and the means implemented for this purpose	GRI 305-5	125-127
	Measures taken to preserve or restore biodiversity	GRI 304-3	131
Biodiversity protection	Impacts caused by activities or operations in protected areas	GRI 304-1 GRI 304-2	131
		ﺍﻟﻤﻮﺍﺻﻞ ﺍﻟﻤﺘﻮﺍﺻﻞ ﺍﻟﻤﺴﺎﻋﺪ ﺍﻟﻤﺴﺘﻮﻯ ﺍﻟﻤﺴﺘﻮﻯ ﺍﻟﻤﺴﺘﻮﻯ ﺍﻟﻤﺴﺘﻮﻯ ﺍﻟﻤﺴﺘﻮﻯ ﺍﻟﻤﺴﺘﻮﻯ ﺍﻟﻤﺴﺘﻮﻯ ﺍﻟﻤﺴﺘﻮﻯ ﺍﻟﻤﺴﺘﻮﻯ ﺍﻟﻤﺴﺘﻮﻯ ﺍﻟﻤﺴﺘﻮﻯ ﺍﻟﻤﺴﺘﻮﻯ ﺍﻟﻤﺴﺘﻮﻯ ﺍﻟﻤﺴﺘﻮﻯ ﺍﻟﻤﺴﺘﻮﻯ ﺍﻟﻤﺴﺘﻮﻯ ﺍﻟﻤﺴﺘﻮﻯ ﺍﻟﻤﺴﺘﻮﻯ ﺍﻟﻤﺴ
Social and personnel issues "" "	Management Approach: policies and risks	GRI 102-15 GRI 103-2	91-114
	Total number and distribution of employees by country, gender, age and professional category	GRI 102-8 GRI 405-1	11,92-94
	Total number and distribution of contract of employment modalities	GRI 102-8	92-94
	Annual average by contract modality (permanent, temporary, and partial), gender, age, and professional classification	GRI 102-9	92-94
	Number of layoffs by gender, age and professional category	GRI 103-2	155
Employment	Salary gap	GRI 103-2 GRI 405-2	108
	Average remuneration and its evolution broken down by gender, age and professional classification or equal value	GRI 103-2 GRI 405-2	109, 158-162
	Average remuneration of board directors and executives, including variable remuneration, travel, subsistence and accommodation allowances, indemnification, payment into long-term savings schemes and any other categories, broken down by gender	GRI 103-2 GRI 405-2	158-162
	Implementation of work disconnection policies	GRI 103-2	137
	Employees with disabilities	GRI 405-1	97
	Organization of working time	GRI 103-2	109-111
Organization of work	Number of hours of absenteeism	GRI 403-9 (Version GRI 2018)	112
	Measures aimed at facilitating a work-life balance and	GRI 401-3	109-111
Health and safety	encouraging both parents to adopt such measures Occupational health and safety conditions	GRI 403-1 GRI 403-2 GRI 403-3 GRI 403-7 (Version GRI 2018)	109-112
	Accidents at work, in particular their frequency and severity, broken down by gender	GRI 403-9 GRI 403-10 (Version GRI 2018)	112

206

	Non-financial information - Law 11/2018, of December 28	Reporting Criteria - GRI Standards	Pages
	Occupational illnesses, broken down by gender	GRI 403-9 GRI 403-10 (Version GRI 2018)	112
	Social and personnel issues of the Callery of the form in the minimal	a mark and the many some the services of the first for the first for the first for the
	Organization of social dialog, including procedures for informing, consulting and negotiating with personnel	GRI 103-2	132, 136-138
Social relations	Percentage of employees covered by collective bargaining agreements by country	GRI 102-41	136-138
	The balance of collective agreements, particularly in the	GRI 403-4	136-138
	field of health and safety at work	(version 2018)
Training	Policies implemented in the field of training	GRI 103-2 GRI 404-2	100
	Total number of training hours per professional category	GRI 404-1	101-102
Accessibility	Universal accessibility for people with disabilities	GRI 103-2	97
	Measures taken to promote equal treatment and equal opportunities for women and men	GRI 103-2	94-97
	Equality plans (Chapter III of Organic Law 3/2007, of March 22, for the effective equality of women and men)	GRI 103-2	143
Equality	Measures adopted to promote employment, protocols against sexual and gender-based harassment, integration	GRI 103-2	61-62, 97
	and universal accessibility for people with disabilities Policy against all forms of discrimination and, where appropriate, the management of diversity	GRI 103-2	54,94
	Information on respect for Human Rights --------------------------------------------------------------------------------------------------------------------------------------
	Management Approach: policies and risks	GRI 102-15 GRI 103-2	141-143
	Implementation of Human Rights due diligence procedures, prevention of risk of Human Rights violations and, where appropriate, measures to mitigate, manage and redress possible abuses committed	GRI 102-16 GRI 102-17 GRI 410-1 GRI 412-1 GRI 412-2 GRI 412-3	141-143
Human Rights	Complaints about cases of Human Rights violations	GRI 103-2 GRI 406-1	62
	Promotion of and compliance with the provisions of the fundamental conventions of the International Labor Organization relating to respect for freedom of association and the right to collective bargaining, the elimination of discrimination in employment and occupation, the elimination of forced or compulsory labor, the effective abolition of child labor	GRI 103-2 GRI 407-1 GRI 408-1 GRI 409-1	141
	Information on fighting corruption and bribery -------------------------------------------------------------------------------------------------------------------------------	第一次第一次第章第章第章第章第章
	Management Approach: policies and risks	GRI 102-15 GRI 103-2	51
Corruption and bribery	Measures taken to prevent corruption and bribery	GRI 103-2 GRI 102-16 GRI 102-17 GRI 205-2	51-62, 63

@ CNMV

ADDITIONAL INFORMATIONADDITIONAL INFORMATION
----------------------------------------------	--

	人的了一篇: 中国人中国人 Non-financial information - Law 11/2018, of December 28	Reporting Criteria - GRI Standards	Pages
		GRI 205-3
	Measures to combat money laundering	GRI 103-2 GRI 102-16 GRI 102-17 GRI 205-2	54
	Contributions to foundations and non-profit entities	GRI 205-3 GRI 102-13 GRI 201-1 GRI 415-1	138-141
Information albout the Society
	Management Approach: policies and risks	GRI 102-15 GRI 103-2	132-144
The company's commitments to sustainable development	Impact of the company's activity on employment and local development	GRI 103-2 GRI 203-2 GRI 204-1	144-147
	Impact of the company's activity on local populations and the territory	GRI 411-1 GRI 413-1 GRI 413-2	178-179
	Relationships maintained with local community actors and the modalities of dialog with them	GRI 102-43 GRI 413-1	130-141
	Association or sponsorship actions	GRI 103-2 GRI 201-1	114-115
	Inclusion of social, gender equality and environmental issues in the purchasing policy	GRI 103-2	87-89
Subcontracting and providers	Consideration in relationships with providers and subcontractors of their social and environmental responsibility	GRI 102-9 GRI 308-J GRI 414-1	88-89
	Supervision systems and audits and their results	GRI 102-9 GRI 308-2 GRI 414-1	88-89
Consumers	Measures for the health and safety of consumers	GRI 103-2 GRI 416-1 GRI 417-1	74, 81-85
	Complaints systems, grievances received and their resolution	GRI 103-2 GRI 418-1	154-155
	Profits obtained country-by-country	GRI 207-4 (2019)	27-35
Tax information	Tax on profits paid	GRI 207-4 (2019)	185-186
	Public subsidies received	GRI 201-4	192

7.6. External Assurance report

[GRI 102-48, 102-49, 102-56] See KPMG Report.

♪

209

Carlos

Código seguro de verificación (CSV): xIvfjCSHJswnKZUFv5fe COPIA ELECTRÓNICA Esta es una copie a inprimble de un documento electrico archivado por la CNMV, según el alticulo 27.3 ) de la Ley 392015, de 2 de octubre. Su

KPMG Asesores, S.L. Pº de la Castellana, 259 C 28046 Madrid

Independent Assurance Report of Integrated Report of MAPFRE, S.A. and subsidiaries for the year 2019

(Free translation from the original in Spanish. In case of discrepancy, the Spanish language version prevails.)

To the shareholders of MAPFRE, S.A.:

We have been engaged by MAPFRE, S.A. management to provide limited assurance on Integrated Report for the year ended 31 December 2019 of MAPFRE, S.A. (hereinafter, the Parent Company) and subsidiaries (hereinafter, The Group), prepared in accordance with Sustainability Reporting Standards of the Global Reporting Initiative (GRI Standards) in its comprehensive option and with the Financial Sector Supplement (hereinafter, the Report).

In addition to this, pursuant to article 49 of the Spanish Code of Commerce, we have provided limited assurance on the Non-Financial Information Statement (hereinafter NFIS) for the year ended 31 December 2019, of MAPFRE, S.A, included in the Report, and its content has been prepared in accordance with the contents included in the prevailing mercantile legislation.

The content of this report includes additional information required by GRI standards in its comprehensive option and required by prevailing mercantile legislation in terms of non-financial information that has not been identified inside the scope of our assurance engagement. In this regard, our assurance work was limited only to providing assurance on the information contained in table "Table of Contents GRI" and "Correspondence of GRI content and non-financial information status" of the accompanying Report.

Directors' and Management responsibilities

The Board of Directors and the management of the Parent Company is responsible for the preparation and presentation of the Report in accordance with GRI Standards in its comprehensive option accordingly as mentioned for each subject in the table "Table of Contents GRI" of the aforementioned Report.

The NFIS has been prepared in accordance with prevailing mercantile legislation and selected Sustainability Reporting Standards of the Global Reporting Initiative (GRI Standards), in accordance with that mentioned for each subject area in table "Correspondence of GRI content and non-financial information status" of the aforementioned Report.

This responsibility also encompasses the design, implementation and maintenance of internal control deemed necessary to ensure that the Report is free from material misstatement, whether due to fraud or error.

The Parent Company's directors are also responsible for defining, implementing, adapting and maintaining the management systems from which the information necessary for preparing the Report.

KPMG Asesores S.L. sociedad española de responsabilidad limitada y firma KPMG AseBores S.L., Sociedad espanole on responsabilidad limitada y firma
miembro de la red KPMG de firmas independientes afiliadas a KPMG Internetonai
Cooperative ("KPMG Int Reg. Mer Madrid, T. 14.972, F. 53, Sec. 8 , H. M -249.480, Inscrip. 1.º
N.I.F. B-82498650

Our Independence and quality control

We have complied with the independence and other ethical requirements of the Code of Ethics for VVe Tave Compleu With the Indopenational Ethics Standards Board for Accountants (IESBA), Inc.
Professional Accountants issued by the International Ethics Standards opments on Professional Accountants issubaby the International in the many of the same the seconds of the care, confidentiality and professional behaviour.

Our firm applies International Standard on Quality Control 1 (ISOC1) and accordingly maintains accerding Our firm applies international of Quality control including documented policies and procedures regarding comprehensive system of quality control morading assembly and applicable legal and regulatory requirements.

The engagement team was comprised of professionals specialized in reviews of non-financial Tife engagement team Was oomphood Or proveded

Our responsibility __

Our responsibility is to express our conclusions in an independent limited assurance report based on the work performed.

We conducted our review engagement in accordance with International Standard on Assurance We conducted our review ongagements other than Audits or Reviews of Historical Financial Eligagements, " ASSaranoo "Engagements" (anternational Auditing and Assurance Standards Information - (16712-0000 (11011064) 1888-11-19 (1747), and with the Performance Guide Dodd (1)AGOD) of the momblional Paciland Information Statement issued by the Spanish Institute of Registered Auditors (ICJCE).

The procedures performed in a limited assurance engagement vary in natura and timing from, and are The procedures portornious in a limited assurance engagement, and consequently, the level of assurance provided is also lower.

Our work consisted of making inquiries of management, as well as of the different units of Group that our work consisted of maning inquiries of the review of the processes for compling and validating participated in the preparation of the roport, in the rother of certain analytical procedures and sample review testing described below:

Meetings with the Group poroomer to gainst to gains and to these questions and to obtain the information necessary for the external review.
Analysis of the scope, relevance and completeness of the Report based on the Analysis of the Soope, Tolovanoo end "Child", "Materiality" (Materiality" considering the content required in prevailing mercantile legislation.
Analysis of the processes for compiling and validating the data presented in the Report for 2019.
Review of the information relative to the risks, policies and management approaches applied in relation to the material aspects presented in the Report for 2019.
Corroboration, through sample testing, of the information relative to the content of the Report for Oorroboration, through adequately compiled based on data provided by internal and external information sources or third-party reports.
Procurement of a representation letter from the Directors and management.

Conclusion

Based on the assurance procedures performed and the evidence obtained, nothing has come to our attention that causes us to believe that:

a) The Integrated Report of MAPFRE, S.A and its subsidiaries for the year ended 31 December 2019 has not been prepared, in all material respects, in accordance with GRI Standards in tis comprehensive option and the Financial Sectorial Supplement, as described in point 102-54 of the Table of Contents GRI.
b) The NFIS of MAPFRE, S.A. and subsidiaries for the year ended 31 December 2019 has not been prepared, in all material respects, in accordance with prevailing mercantile legislation and the content of the selected GRI Standards, in accordance with that mentioned for each subject area in the table "Correspondence of GRI content and non-financial information status" of the aforementioned Report.

Use and distribution

In accordance with the terms and conditions with our engagement letter, this assurance report has been prepared for MAPFRE, S.A. in relation to its Integrated Report 2019 and thus may not be suitable for other purposes or in any other context.

Regarding the NFIS, this report has been prepared in response to the requirement established in prevailing mercantile legislation in Spain, and thus may not be suitable for other purposes and jurisdictions.

KPMG Asesores, S.L.

(Signed on the original in Spanish)

Patricia Reverter Guillot

12 February 2020

The Integrated Report for MAPFRE S.A., corresponding to financial year 2019, contained on the preceding pages 1 to xxx herein, endorsed by the Secretary of the Board, and which include information regarding the non-financial statement that is included in the Consolidated Management Report, has been drafted by the Board of Directors at its meeting held on February 11, 2020.

Mr. Antonio Gómez Ciria Mr. Antonio Huertas Mejías Chairman Member Mr. Luis Hernando de Larramendi Martínez Mr. Ignacio Baeza Gómez 1st Vice Chairman Member Mr. Francisco J. Marco Orenes Ms. Catalina Miñarro Brugarolas 2nd Vice Chairman Member Mr. José Manuel Inchausti Pérez Mr. Fernando Mata Verdejo 3rd Vice Chairman Member Mr. Antonio Miguel-Romero de Olano Mr. José Antonio Colomer Guiu Member Member Ms. Pilar Perales Viscasillas Ms. María Leticia de Freitas Costa Member Member Mr. Alfonso Rebuelta Badías Ms. Ana Isabel Fernández Alvarez Member Member Ms. Rosa M.ª García García Mr. Ángel Luis Dávila Bermejo Member Secretary and Non-Member

The English version is a translation of the original for information purposes only. In case of discrepancy, the Spanish version shall prevail.

Ángel L. Dávila Bermejo secretario general

OMAPER

CUMISION NACIONAL MERCADO CE VALORES
1 2 FEB. 2020
REGISTRO DE ENTRADA 20 200000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000
20700187

Madrid, a 12 de febrero de 2020

COMISIÓN NACIONAL DEL MERCADO DE VALORES

Adjuntos se remiten dos ejemplares, tanto en español como en inglés, de las Cuentas Anuales e Informe de Gestión, Individuales y Consolidados, así como el Informe Integrado de MAPFRE, S.A., y las declaraciones de responsabilidad sobre su contenido firmadas por todos los administradores, junto con los Informes de Auditoría, correspondientes al ejercicio 2019.

COMISIÓN NACIONAL DEL MERCADO DE VALORES

C/ EDISON N.º 4, MADRID

Carretera de Pozuelo, 52 28222 Majadahonda Madrid España 1 +34.915.81.10.68 / +34.915.81.11.29 F +34.915.81.81.70 [email protected]

Código seguro de verificación (CSV): xlvfjCSHJswnKZUFv5fe	COPIA ELECTRONICA
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Mapfre S.A. — Audit Report / Information 2019

1854_10-k_2020-02-14_489bab2f-13f2-4c5b-b6b9-3ed23a2ad78d.pdf

MAPFRE, S.A.

Independent Auditor's Report on the Annual Accounts

Report on the Annual Accounts

Opinion

Basis for Opinion

Key Audit Matters

Other Information: Directors' Report

Directors' and Audit and Compliance Committee's responsibility for the Annual Accounts

Auditor's Responsibilities for the Audit of the Annual Accounts

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

Additional Report to the Audit and Compliance Committee

Contract Period

ANNUAL ACCOUNTS

MANAGEMENT REPORT

ANNUAL ACCOUNTS

BALANCE SHEET AS AT DECEMBER 31, 2019 AND 2018

BALANCE SHEET AS AT DECEMBER 31, 2019 AND 2018

INCOME STATEMENT FOR THE YEARS ENDED DECEMBER 31, 2019 AND 2018

STATEMENT OF CHANGES IN EQUITY AT DECEMBER 31, 2019 AND 2018

A) STATEMENTS OF RECOGNIZED INCOME AND EXPENSE

STATEMENT OF CHANGES IN EQUITY AT DECEMBER 31, 2019 AND 2018

STATEMENT OF TOTAL CHANGES IN EQUITY B)

CASH FLOW STATEMENT AT DECEMBER 31, 2019 AND 2018

ANNUAL REPORT

COMPANY ACTIVITY 1.

2. BASIS OF PRESENTATION OF THE ANNUAL ACCOUNTS

a) TRUE AND FAIR VIEW

b) ACCOUNTING PRINCIPLES

c) CRITICAL ASPECTS OF MEASURING AND ESTIMATING UNCERTAINTY

d) COMPARISON OF INFORMATION

e) CORRECTIONS OF ERRORS

3. DISTRIBUTION OF PROFITS

4. RECOGNITION AND MEASUREMENT STANDARDS

Fixed assets a)

Intangible fixed assets

Property, plant and equipment

Impairment of fixed assets

b) Operating leases

c) Financial instruments

FINANCIAL ASSETS

Loans and receivables

Investments in the equity of Group companies, jointly controlled companies and associates

Financial assets available for sale

Cash and other equivalent liquid assets

Interest and dividends received from financial assets

Derecognition of financial assets

FINANCIAL LIABILITIES

Debits and payables

Derecognition of financial liabilities

Own equity instruments

d) Transactions in foreign currency

e) Corporate tax

f) Revenue and expenses

g) Provisions and contingencies

Personnel expenses h)

Short-term remuneration

Post-employment benefits

Defined contribution plans

Defined benefit plans

Compensation for termination

Other medium- and long-term remuneration and share-based payments

Related-party transactions i)

5. PROPERTY, PLANT AND EQUIPMENT

6. INTANGIBLE FIXED ASSETS

Operating leases

8. FINANCIAL INSTRUMENTS

Financial assets

Financial liabilities

Fiscal year 2019

mapfre s.a.

Fiscal year 2018

Information regarding the income statement and equity

Group companies and associates

Financial instruments risk

9. SHAREHOLDERS' EQUITY

SHARE CAPITAL

SHARE PREMIUM

Mapfre S.A. Audit Report / Information 2019