Mapfre S.A. — Audit Report / Information 2023

Feb 14, 2024

Auditor's Report on MAPFRE, S.A. and subsidiaries

(Together with the annual accounts and consolidated Management Report MAPFRE, S.A. and subsidiaries for the year ended 31December 2023)

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

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, 2023, the income statement, the statement of comprehensive income, the statement of changes in equity, the cash flow statement 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 2023 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 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 Consolidated Annual Accounts section of our report.

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.

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.

Transition to IFRS-EU 17 and IFRS-EU 9 See note 2.5 of the notes to the consolidated annual accounts
Key audit matter	How the matter was addressed in our audit
The year beginning 1 January 2023 is the MAPFRE Group's first year of application of International Financial Reporting Standards 17 and 9 (IFRS 17 and IFRS 9), which significantly modify the accounting criteria for the recognition and measurement of insurance contracts and the classification and measurement of the Group's financial instruments. As part of the initial application of these standards, comparative information at 1 January 2022 (transition balance sheet) needs to be prepared and the financial statements for 2022 need to be restated. The transition to IFRS 17 and IFRS 9 has a significant impact on equity and is a complex process that requires the application of judgements, assumptions and estimates by the directors. The preparation of comparative information has therefore been considered a key matter.	As part of our audit approach, we obtained an understanding of the process and key controls established by management in the transition. In addition, we performed substantive procedures with the collaboration of our actuarial specialists, which basically consisted of the following: – Assessing whether the Group's new accounting policies are in line with the new IFRS 17 and IFRS 9 standards, including the methodology used by the Group to determine the CSM (contractual service margin) on transition. – Evaluating the reasonableness of the models and key assumptions used to determine the fulfilment cash flows for the liability for insurance contracts. – We performed actuarial recalculations of the fulfilment cash flows for the liability for remaining coverage and for incurred claims, as well as of the CSM on transition, for a sample of contract groups selected on the basis of our risk assessment, having previously performed procedures on the completeness and accuracy of the databases used in these calculations and of the assumptions used. – Assessing the correct classification and measurement of financial instruments under IFRS 9 for a representative sample of financial instruments. We also assessed the appropriateness of the disclosures in the consolidated annual accounts regarding the transition, considering the requirements of IFRS-EU.

Measurement of the liability for remaining coverage not measured using the premium allocation approach (PAA) (17,228.3 million of Euros) See notes 5.14 and 6.12 of the notes to the consolidated annual accounts.

Key audit matter	How the matter was addressed in our audit
The liability for remaining coverage of contracts not measured using the premium allocation approach (PAA) includes the present value of the fulfilment cash flows relating to allocated future service, as well as the contractual service margin and the risk adjustment. The calculation of the present value of fulfilment cash flows relating to future service is subject to estimates that include the determination of assumptions involving a high degree of judgement. In particular, the use of inappropriate assumptions in actuarial calculations may result in significant impacts on the consolidated annual accounts and has therefore been considered a key audit matter.	Our audit approach included testing the design and implementation of the key controls established by the Group for measuring the liability for remaining coverage. Our substantive procedures, which were carried out in collaboration with our actuarial specialists, basically consisted of the following: – Testing the completeness and accuracy of the databases used in determining the assumptions, as well as on actuarial calculations. – Assessing the methodology and reasonableness of the actuarial models and assumptions used in the calculations of the present value of future cash flows. – Performing an independent estimate of the present value of future fulfilment cash flows used for a sample of contract groups selected on the basis of our risk assessment. We also assessed the adequacy of the disclosures in the consolidated annual accounts with regard to the liability for remaining coverage not measured using the premium allocation approach, considering the requirements of IFRS-EU.

Measurement of liability for incurred claims using the premium allocation approach (PAA) (12,254.1 million of Euros) See notes 5.14 and 6.12 of the notes to the consolidated annual accounts.

Key audit matter How the matter was addressed in our audit The Group recognises the liability for incurred claims measured using the premium allocation approach (PAA) to cover the estimated cost of claims occurring up to the reporting date. Estimating this liability, specifically the present value of future cash flows, is complex and requires actuarial methods and calculations based on judgement and significant assumptions, particularly for those contract groups where the claim settlement period can be very long, such as in automobile, public liability, fires, aviation and transport. Actuarial projection methods, based on both historical information and assumptions on future developments, are used to measure the present value of future cash flows of the liability for incurred claims. These estimates include assumptions related to the amount of the expected settlement and claim payment patterns. Due to their nature, there is a significant degree of uncertainty, and a change in assumptions could significantly impact the consolidated annual accounts. Therefore, this has been considered a key audit matter. Our audit procedures included testing the design and implementation of the key controls established by the Group for estimating the liability for incurred claims, including controls on the definition of key assumptions and on the integrity and accuracy of the databases used when estimating these liabilities. Our substantive procedures in relation to the future cash flows of the liability for incurred claims, which were carried out in collaboration with our actuarial specialists and for a representative sample of contract groups selected based on our assessment of risks and their significance, consisted primarily of the following: – We tested the completeness and accuracy of the databases used in the actuarial calculations. – Based on our knowledge and experience in the sector, we assessed the reasonableness of the actuarial models and assumptions used to calculate the present value of the future cash flows of the liability for incurred claims. – We estimated the future cash flows of the liability for incurred claims for a sample and, based on our experience, we determined a range for assessing their reasonableness. We also assessed the appropriateness of the disclosures in the consolidated annual accounts with regard to the liability for incurred claims associated with the premium allocation approach, considering the requirements of IFRS-EU.

Valuation of financial instruments not quoted on active markets and recognized at fair value (12,306.1 million of Euros) See notes 5.5 and 6.4 of the notes to the consolidated annual accounts.

Key audit matter	How the issue was addressed in our audit
The classification of the financial instruments in the different existing portfolios in the applicable financial standards (IFRS 9) determines the criteria to be applied in their subsequent valuation. The majority of the MAPFRE Group's financial instruments are valued using market prices in active markets. Nonetheless, where there is no quoted price in an active market, the fair value of financial instruments is determined using valuation techniques that consider factors such as non observable market inputs or complex valuation models that require a high degree of judgement. Changes in the assumptions considered, market	Our audit approach included assessing the key controls linked to the processes of valuing financial instrument portfolios and performing substantive testing thereon. In collaboration with our specialists in financial instruments, we selected representative samples of the population of the Group's financial instruments, for which its adequate valuation was evaluated, through the performance of various substantive procedures, which included the recalculation of fair value and the evaluation of the reasonableness of the data used for the valuation models, especially those not directly observable in the market.
events or new regulations can also have a significant impact on valuation. 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 .	Additionally, we assessed whether the information disclosed in the consolidated annual accounts on financial instruments adequately reflects the Group's exposure to the risk of valuing financial instruments, and whether it complies with the disclosure requirements of IFRS-EU.

Valuation of goodwill and portfolio acquisition costs (1,775.1 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 assumptions about macroeconomic developments, internal circumstances of the entity and competitors, discount rates or future business performance. The Group performs at least on an annual basis for goodwill, or when indications of impairment are identified for both goodwill and registered portfolio acquisition costs, an evaluation to determine if there is impairment in these assets. In this sense, our assessment has focused mainly on goodwill and portfolio acquisition costs of the most significance and those whose estimated recoverable value is closer to the carrying amount of the net assets or may be affected by current macroeconomic conditions. 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.	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 Board of Directors 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. 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. – In collaboration with our valuation specialists, analysing the discount and growth rates used by the Group to estimate the recoverable amount of CGUs. – Assessing the reasonableness of the financial projections prepared by management, comparing them to the historical financial information 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.

7

Other Information. Consolidated Management Report ______________________

Other information solely comprises the 2023 consolidated Management 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 Management Report. Our responsibility regarding the information contained in the consolidated Management Report, in conformity with prevailing audit regulations in Spain, entails:

• a) Checking only that the consolidated non-financial information statement, certain information included in the Annual Corporate Governance Report and the Annual Report on Directors' Remuneration, to which the Audit Law refers, was provided as stipulated by applicable regulations and, if not, disclose this fact.
• b) Assessing and reporting on the consistency of the remaining information included in the consolidated Management Report with the consolidated financial statements, based on the knowledge of the Group obtained during the audit, in addition to evaluating and reporting on whether the content and presentation of this part of the consolidated Management Report are in conformity with applicable regulations. If, based on the work we have performed, we conclude that there are material misstatements, we are required to disclose this fact.

Based on the work performed, as described in the preceding paragraphs, we have verified that the information referred to in paragraph a) above is provided as stipulated by applicable regulations and that the remaining information contained in the consolidated Management Report is consistent with that disclosed in the consolidated annual accounts for 2023 and its content and presentation are in accordance with applicable regulations.

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 equity, 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.

8

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.

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

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

European single electronic format _________________________________________

We have examined the digital files of the European single electronic format (ESEF) of MAPFRE, S.A. and subsidiaries for the 2023 financial year, which include the XHTML file containing the consolidated financial statements for the year, and the XBRL files as labeled by the entity, which will form part of the annual financial report.

The directors of MAPFRE, S.A. are responsible for submitting the annual financial report for the 2023 financial year, in accordance with the formatting and mark-up requirements set out in Delegated Regulation EU 2019/815 of 17 December 2018 of the European Commission (hereinafter referred to as the ESEF Regulation). In this respect, they have incorporated the Annual Corporate Governance Report and the Annual Report on Directors' Remuneration by reference in the consolidated management report.

Our responsibility consists of examining the digital files prepared by the directors of the parent company, in accordance with prevailing audit regulations in Spain. These standards require that we plan and perform our audit procedures to obtain reasonable assurance about whether the contents of the consolidated financial statements included in the aforementioned digital files correspond in their entirety to those of the consolidated financial statements that we have audited, and whether the consolidated financial statements and the aforementioned files have been formatted and marked up, in all material respects, in accordance with the ESEF Regulation.

In our opinion, the digital files examined correspond in their entirety to the audited consolidated financial statements, which are presented and have been marked up, in all material respects, in accordance with the ESEF Regulation.

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

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 13 February 2024.

Contract Period __________________________________________________________

We were appointed as auditor of the Group by the shareholders at the ordinary general meeting on 12 March 2021 for a period of 3 years, from the year ended 31 December 2021.

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. On the Spanish Official Register of Auditors ("ROAC") with No. S0702

(Signed on original in Spanish)

Ángel Crespo Rodrigo On the Spanish Official Register of Auditors ("ROAC") with No. 21.033

13 February 2024

CONSOLIDATED ANNUAL ACCOUNTS AND CONSOLIDATED MANAGEMENT REPORT

2023

MAPFRE S.A.

CONSOLIDATED ANNUAL ACCOUNTS

2023

MAPFRE S.A.

2020-12-31

CONSOLIDATED ANNUAL ACCOUNTS 2023 TABLE OF CONTENTS

A) Consolidated balance sheet	4
B) Consolidated statement of income and comprehensive income	6
C) Consolidated statement of changes in equity	8
D) Consolidated cash flow statement	10
E) Financial information by segment	11
F) Supplementary financial information by product and geographical area	15
G) Consolidated annual report	16
1. General information regarding the company and its activities	16
2. Basis of presentation of the consolidated annual accounts	17
3. Consolidation	24
4. Earnings per share and dividends	27
5. Accounting policies	27
6. Breakdown of financial statements	42
7. Risk management	102
8. Other information	116
APPENDIX	118
Appendix 1	118
Appendix 2	133

A) CONSOLIDATED BALANCE SHEET AS ON DECEMBER 31, 2023 AND 2022

	ASSETS	NOTES	December 31, 2023	December 31, 2022 (*)
A)	INTANGIBLE ASSETS	6.1	2,680.1	2,789.5
I.	Goodwill		1,353.7	1,445.6
II.	Other intangible assets		1,326.4	1,343.9
B)	PROPERTY, PLANT AND EQUIPMENT	6.2	1,183.9	1,301.9
I.	Real estate for own use		978.2	1,084.7
II.	Other property, plant and equipment		205.7	217.2
C)	INVESTMENTS		40,937.3	37,626.3
I.	Real estate investments	6.2	973.0	980.8
II.	Financial investments		—	—
	1. Fair value with changes through P&L	6.4	15,072.8	13,058.3
	2. Fair value with changes through OCI	6.4	21,681.9	20,303.2
	3. Amortized cost	6.4	1,295.9	1,266.9
III.	Investments accounted for using the equity method	6.4	1,225.8	886.7
IV.	Hedging derivatives		—	—
V.	Other investments		687.9	1,130.4
D)	INSURANCE CONTRACT ASSETS	6.12	9.0	6.1
I.	Measurement under BBA for Assets for remaining coverage		10.7	6.1
II.	Measurement under BBA for Assets for incurred claims		(1.7)	—
III.	Measurement under VFA for Assets for remaining coverage		—	—
IV.	Measurement under VFA for Assets for incurred claims		—	—
V.	Measurement under PAA for Assets for remaining coverage		—	—
VI.	Measurement under PAA for Assets for incurred claims		—	—
E)	CEDED REINSURANCE CONTRACT ASSETS	6.12	5,938.1	5,666.7
I.	Measurement under BBA for Assets for remaining coverage		—	—
II.	Measurement under BBA for Assets for incurred claims		—	3.5
III.	Measurement under PAA for Assets for remaining coverage		1,375.9	1,329.1
IV	Measurement under PAA for Assets for incurred claims		4,562.2	4,334.1
F)	INVENTORIES		56.4	53.4
G)	DEFERRED TAX ASSETS	6.16	397.3	591.4
H)	RECEIVABLES		1,281.2	1,193.8
I.	Tax credits		—	—
	1. Tax credits on profits		402.1	306.5
	2. Other tax credits		112.8	141.0
II.	Corporate and other receivables	6.5	766.3	746.3
III.	Shareholders, called capital		—	—
I)	CASH		2,086.0	2,574.6
J)	ACCRUAL ADJUSTMENTS		202.3	228.0
K)	OTHER ASSETS		105.8	116.5
L)	NON-CURRENT ASSETS HELD FOR SALE AND FROM DISCONTINUED OPERATIONS	6.8	69.7	49.1
	TOTAL ASSETS		54,947.1	52,197.3

Figures in millions of euros

(*) Restated figures

A) CONSOLIDATED BALANCE SHEET AS ON DECEMBER 31, 2023 AND 2022

	EQUITY AND LIABILITIES	NOTES	December 31, 2023	December 31, 2022 (*)
A)	EQUITY		9,656.3	8,869.7
I.	Paid-up capital	6.9	308.0	308.0
II.	Share premium	6.9	1,506.7	1,506.7
III.	Reserves		7,957.2	7,986.4
IV.	Interim dividend	4.2	(184.8)	(184.8)
V.	Treasury stock	6.9	(31.7)	(41.4)
VI.	Result for the period attributable to controlling company	4.1	677.2	563.6
VII.	Other equity instruments		—	0.3
VIII	Valuation change adjustments	6.9	(412.1)	(923.4)
IX.	Currency conversion differences	6.18	(1,353.9)	(1,418.3)
	Equity attributable to the controlling company's shareholders		8,466.6	7,797.1
	Non-controlling interests		1,189.7	1,072.6
B)	SUBORDINATED LIABILITIES	6.10	1,628.4	1,627.0
C)	INSURANCE CONTRACT LIABILITIES	6.12	38,361.7	35,564.7
I.	Measurement under BBA for Liabilities for remaining coverage		10,806.6	9,000.6
II.	Measurement under BBA for Liabilities for incurred claims		357.6	323.7
III	Measurement under VFA for Liabilities for remaining coverage		8,666.1	8,535.0
IV	Measurement under VFA for Liabilities for incurred claims		182.1	182.6
V.	Measurement under PAA for Liabilities for remaining coverage		5,502.7	5,539.6
VI.	Measurement under PAA for Liabilities for incurred claims		12,846.6	11,983.2
D)	CEDED REINSURANCE CONTRACT LIABILITIES	6.12	15.5	14.5
I.	Measurement under BBA for Liabilities for remaining coverage		19.2	14.5
II.	Measurement under BBA for Liabilities for incurred claims		(3.7)	—
III	Measurement under PAA for Liabilities for remaining coverage		—	—
IV	Measurement under PAA for Liabilities for incurred claims		—	—
E)	PROVISIONS FOR RISKS AND EXPENSES	6.13	552.4	522.2
F)	DEFERRED TAX LIABILITIES	6.16	236.0	324.8
G)	DEBTS		4,338.0	5,161.0
I.	Issue of debentures and other trading securities	6.11	864.2	863.5
II.	Due to credit institutions	6.11	250.6	444.2
III.	Other financial liabilities	6.11	1,233.4	2,047.0
IV.	Derivatives for hedging		—	—
V.	Tax liabilities		—	—
	1. Tax liabilities on profits		226.6	153.3
	2. Other tax liabilities		288.0	288.0
VI.	Other debts		1,475.2	1,365.0
H)	ACCRUAL ADJUSTMENTS		127.1	101.7
I)	LIABILITIES LINKED TO NON-CURRENT ASSETS HELD FOR SALE AND FROM DISCONTINUED OPERATIONS	6.8	31.7	11.7
	TOTAL EQUITY AND LIABILITIES		54,947.1	52,197.3

Figures in millions of euros

(*) Restated figures

B) CONSOLIDATED STATEMENT OF INCOME AND COMPREHENSIVE INCOME FOR YEARS ENDING DECEMBER 31, 2023 AND 2022

B.1) CONSOLIDATED INCOME STATEMENT

ITEM	NOTES	2023	2022 (*)
I. INSURANCE REVENUE (+)	6.12	24,781.0	22,717.2
1 Release of liability for remaining coverage	6.12	24,579.4	22,543.7
2 Release of insurance acquisition expenses allocated to the period	6.12	201.6	173.5
II. INSURANCE SERVICE EXPENSES (-)	6.12	(22,346.3)	(20,405.4)
1 Incurred claims and other insurance service expenses		(16,120.9)	(15,571.4)
2 Acquisition expenses		(5,358.3)	(4,914.8)
3 Losses on onerous contract groups and reversals of those losses		(84.2)	(88.5)
4 Changes in liability for incurred claims		(782.9)	169.3
RESULT FROM INSURANCE SERVICE (A)		2,434.7	2,311.8
III. REINSURANCE REVENUE (+)	6.12	2,866.1	2,630.8
IV. REINSURANCE SERVICE EXPENSES (-)	6.12	(4,259.7)	(4,075.5)
RESULT FROM REINSURANCE SERVICE (B)		(1,393.6)	(1,444.7)
RESULT FROM REINSURANCE AND INSURANCE SERVICE (A)+(B)		1,041.1	867.1
V. INSURANCE AND REINSURANCE SERVICE FINANCE REVENUE/EXPENSES			–
1 Insurance finance revenue/expenses	6.12	(1,533.0)	42.4
2 Reinsurance finance revenue/expenses	6.12	95.4	93.8
FINANCIAL RESULT FROM INSURANCE AND REINSURANCE CONTRACTS (C)	6.12	(1,437.6)	136.2
VI. FINANCE REVENUE/EXPENSES NOT RELATED TO INSURANCE SERVICE			–
1 Finance revenue not related to insurance service (+)	6.14	3,125.8	1,579.8
2 Finance expenses not related to insurance service (-)	6.14	(776.5)	(1,147.2)
3 Result from equity-accounted companies
a) Share in profits from equity-accounted companies		81.8	16.8
b) Share in losses from equity-accounted companies		(49.5)	(1.6)
4 Reversal of financial asset impairment provision (+)	6.6	21.5	21.9
5 Allowance to the financial asset impairment provision (-)	6.6	(37.2)	(27.2)
FINANCIAL RESULT NOT RELATED TO INSURANCE SERVICE (D)		2,365.9	442.5
FINANCIAL RESULT (C)+(D) VII. OTHER INSURANCE REVENUE/EXPENSES	6.12	928.3	578.7
1 Other non-technical revenue (+)		88.0	82.9
2 Other non-technical expenses (-)		(142.9)	(171.9)
3 Positive exchange differences (+)		1,485.9	1,736.2
4 Negative exchange differences (-)		(1,467.0)	(1,676.8)
5 Reversal of asset impairment provision (+)	6.6	1.4	3.0
6 Allowance to the asset impairment provision (-)	6.6	(80.0)	–
RESULT FROM OTHER INSURANCE REVENUE/EXPENSES		(114.6)	(26.6)
VIII. OTHER ACTIVITIES			–
1 Operating revenue (+)		606.8	527.2
2 Operating expenses (-)		(698.0)	(600.5)
3 Revenue from fixed assets and investments (+)		30.5	41.8
4 Expenses from fixed assets and investments (-)		(10.5)	(9.2)
5 Net financial income (+)		(61.2)	(64.0)
6 Negative consolidation differences (+)		–	–
Result from equity-accounted companies 7
a) Share in profits from equity-accounted companies		9.5	14.7
b) Share in losses from equity-accounted companies		(8.5)	(2.6)
8 Positive exchange differences (+)		–	–
9 Negative exchange differences (-)		–	–
Reversal of asset impairment provision (+) 10	6.6	3.3	2.7
Allowance to the asset impairment provision (-) 11	6.6	(8.8)	(22.7)
Result from disposal of non-current assets held for sale, not included in discontinued activities 12		–	23.5
RESULT FROM OTHER ACTIVITIES		(136.9)	(89.1)
IX. RESULT FROM RESTATEMENT OF FINANCIAL STATEMENTS	3.3	(70.2)	(60.3)
X. RESULT BEFORE TAX FROM ONGOING OPERATIONS	6.16	1,647.7	1,269.8
XI. TAX ON PROFIT FROM ONGOING OPERATIONS	6.16	(381.1)	(296.3)
XII. RESULT AFTER TAX FROM ONGOING OPERATIONS		1,266.6	973.5
XIII. RESULT AFTER TAX FROM DISCONTINUED OPERATIONS		–	–
XIVX. RESULT FOR THE PERIOD		1,266.6	973.5
1 Attributable to non-controlling interests		589.4	410.1
2 Attributable to the controlling company		677.2	563.6

Figures in millions of euros

(*) Restated figures

B.2) CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

ITEM	NOTES	2023	2022 (*)
A) CONSOLIDATED RESULT FOR THE YEAR		1,266.6	973.5
B) OTHER COMPREHENSIVE INCOME – PROFITS (LOSSES) RECOGNIZED IN RESERVES		59.1	–
C) OTHER COMPREHENSIVE INCOME - HEADINGS THAT CAN BE SUBSEQUENTLY RECLASSIFIED TO RESULTS		466.6	(502.6)
1. Financial assets at fair value with changes through OCI
a) Valuation gains (losses)		989.4	(4,195.2)
b) Amounts transferred to P&L		(9.3)	(91.2)
c) Amounts transferred to reserves		(59.1)	–
d) Other reclassifications		32.4	(6.3)
2. Currency conversion differences
a) Valuation gains (losses)		76.2	422.8
b) Amounts transferred to P&L		0.7	0.2
c) Other reclassifications		–	–
3. Insurance/Reinsurance contracts
a) Valuation gains (losses)		(436.4)	3,016.1
b) Amounts transferred to P&L		–	0.7
c) Other reclassifications		(1.8)	–
4. Equity-accounted entities
a) Valuation gains (losses)		13.4	20.7
b) Amounts transferred to P&L		–	–
c) Other reclassifications		(0.1)	–
5. Other recognized revenue and expenses		(1.0)	1.7
6. Tax on profits		(137.8)	327.9
TOTAL COMPREHENSIVE INCOME FOR THE YEAR (A+B+C)		1,792.3	470.9
1. Attributable to the controlling company		1,170.8	4.6
2.Attributable to non-controlling interests		621.5	466.3
Figures in millions of euros

(*) Restated figures

C) CONSOLIDATED STATEMENT OF CHANGES IN EQUITY AS ON DECEMBER 31, 2023 AND 2022

	EQUITY ATTRIBUTABLE TO THE CONTROLLING COMPANY
			SHAREHOLDERS' EQUITY									TOTAL
ITEM	NOTES	SHARE CAPITAL	SHARE PREMIUM	RESERVES	INTERIM DIVIDEND	TREASURY STOCK	RESULT ATTRIBUTABLE TO CONTROLLING COMPANY	OTHER EQUITY INSTRUMENTS	VALUATION CHANGE ADJUSTMENTS	CURRENCY CONVERSION DIFFERENCES	CONTROLLING INTERESTS	EQUITY
OPENING BALANCE AS ON JANUARY 1, 2022 (Restated figures)		308.0	1,506.7	7,102.4	(184.8)	(62.9)	765.2	–	805.3	(1,776.3)	1,203.0	9,666.6
1 Changes in accounting policies	2.5	–	–	595.7	–	–	–	–	(811.6)	–	(27.1)	(243.0)
2 Correction of errors		–	–	–	–	–	–	–	–	–	–	–
ADJUSTED OPENING BALANCE		308.0	1,506.7	7,698.1	(184.8)	(62.9)	765.2	–	(6.3)	(1,776.3)	1,175.9	9,423.6
I. TOTAL COMPREHENSIVE REVENUE (EXPENSES)		–	–	–	–	–	563.6	–	(917.1)	358.1	466.3	470.9
II. TRANSACTIONS WITH THE CONTROLLING COMPANY'S SHAREHOLDERS AND NON-CONTROLLING INTERESTS		–	–	(265.4)	(184.8)	21.5	–	0.3	–	–	(563.5)	(991.9)
1 Capital increases (decreases)		–	–	–	–	–	–	–	–	–	30.0	30.0
2 Dividend distribution	4.2	–	–	(261.7)	(184.8)	–	–	–	–	–	(421.7)	(868.2)
3 Increases (decreases) from business combinations		–	–	–	–	–	–	–	–	–	(81.7)	(81.7)
4 Transactions with treasury stock or shares	6.9	–	–	(3.7)	–	21.5	–	0.3	–	–	–	18.1
Other transactions with the controlling company's shareholders and non controlling interests 5		–	–	–	–	–	–	–	–	–	(90.1)	(90.1)
III. OTHER VARIATIONS IN EQUITY		–	–	553.7	184.8	–	(765.2)	–	–	–	(6.1)	(32.8)
1 Transfers between equity items		–	–	580.4	184.8	–	(765.2)	–	–	–	–	–
2 Other variations		–	–	(26.7)	–	–	–	–	–	–	(6.1)	(32.8)
CLOSING BALANCE AS ON DECEMBER 31, 2022 (Restated figures)		308.0	1,506.7	7,986.4	(184.8)	(41.4)	563.6	0.3	(923.4)	(1,418.3)	1,072.6	8,869.7

	EQUITY ATTRIBUTABLE TO THE CONTROLLING COMPANY
ITEM		NOTES		SHAREHOLDERS' EQUITY
			SHARE CAPITAL	SHARE PREMIUM	RESERVES	INTERIM DIVIDEND	TREASURY STOCK	RESULT ATTRIBUTABLE TO CONTROLLING COMPANY	OTHER EQUITY INSTRUMENTS	VALUATION CHANGE ADJUSTMENTS	CURRENCY CONVERSION DIFFERENCES	CONTROLLING INTERESTS	TOTAL EQUITY
	OPENING BALANCE AS ON JANUARY 1, 2023		308.0	1,506.7	7,986.4	(184.8)	(41.4)	563.6	0.3	(923.4)	(1,418.3)	1,072.6	8,869.7
1	Changes in accounting policies	2.5	–	–	(145.0)	–	–	–	–	141.2	–	–	(3.8)
2	Correction of errors		–	–	–	–	–	–	–	–	–	–	–
	ADJUSTED OPENING BALANCE		308.0	1,506.7	7,841.4	(184.8)	(41.4)	563.6	0.3	(782.2)	(1,418.3)	1,072.6	8,865.9
	I. TOTAL COMPREHENSIVE REVENUE (EXPENSES)		–	–	59.1	–	–	677.2	–	370.1	64.4	621.5	1,792.3
	II. TRANSACTIONS WITH THE CONTROLLING COMPANY'S SHAREHOLDERS AND NON-CONTROLLING INTERESTS		–	–	(262.6)	(184.8)	9.7	–	(0.3)	–	–	(504.4)	(942.4)
1	Capital increases (decreases)		–	–	–	–	–	–	–	–	–	7.3	7.3
2	Dividend distribution	4.2	–	–	(261.7)	(184.8)	–	–	–	–	–	(517.9)	(964.4)
3	Increases (decreases) from business combinations		–	–	–	–	–	–	–	–	–	10.3	10.3
4	Transactions with treasury stock or shares	6.9	–	–	(0.9)	–	9.7	–	(0.3)	–	–	–	8.5
5	Other transactions with the controlling company's shareholders and non-controlling interests		–	–	–	–	–	–	–	–	–	(4.1)	(4.1)
	III. OTHER VARIATIONS IN EQUITY		–	–	319.3	184.8	–	(563.6)	–	–	–	–	(59.5)
1	Transfers between equity items		–	–	378.8	184.8	–	(563.6)	–	–	–	–	–
2	Other variations		–	–	(59.5)	–	–	–	–	–	–	–	(59.5)
	CLOSING BALANCE AS ON DECEMBER 31, 2023		308.0	1,506.7	7,957.2	(184.8)	(31.7)	677.2	–	(412.1)	(1,353.9)	1,189.7	9,656.3

D) CONSOLIDATED CASH FLOW STATEMENT FOR YEARS ENDING DECEMBER 31, 2023 AND 2022

ITEM	NOTES 2023	2022 (*)
1. Insurance activity:	2,283.5	1,324.4
Cash received from insurance activity	29,504.1	25,277.0
Cash paid from insurance activity	(27,220.6)	(23,952.6)
2. Other operating activity:	(271.4)	(370.8)
Cash received from other operating activity	636.3	743.2
Cash payments from other operating activity	(907.7)	(1,114.0)
3. Income tax received (paid)	(395.4)	(376.9)
NET CASH FLOWS FROM OPERATING ACTIVITY	1,616.7	576.7
1. Investment activity collections:	17,047.2	24,799.6
Property, plant and equipment	13.7	2.6
Real estate investments	151.1	225.5
Intangible fixed assets	–	–
Financial instruments	13,859.6	21,458.4
Shareholdings	2,162.0	2,063.4
Controlled companies and other business units	15.1	233.7
Interest collected	704.7	654.8
Dividends collected	121.3	115.6
Other proceeds related to investment activity	19.7	45.6
2. Investment activity payments:	(17,720.8)	(24,998.1)
Property, plant and equipment	(67.3)	(66.8)
Real estate investments	(15.1)	(40.3)
Intangible fixed assets	(150.6)	(162.7)
Financial instruments	(15,679.5)	(22,162.8)
Shareholdings	(1,527.1)	(2,468.8)
Controlled companies and other business units	(173.9)	(47.4)
Other payments related to investment activity	(107.3)	(49.3)
NET CASH FLOWS FROM INVESTMENT ACTIVITY	(673.6)	(198.5)
1. Financing activity collections:	391.2	1,151.8
Subordinated liabilities	–	500.0
Equity instrument issue and capital increase collections	48.5	30.0
Sale of treasury stock	8.9	17.8
Other financing activity collections	333.8	604.0
2. Financing activity payments:	(1,672.3)	(1,876.0)
Dividends paid to shareholders	(964.4)	(876.4)
Interest paid	(96.8)	(79.9)
Subordinated liabilities	–	–
Payments for return of shareholder contributions	–	(16.8)
Purchase of treasury stock	–	–
Other finance activity payments	(611.1)	(902.9)
NET CASH FLOW FROM FINANCING ACTIVITY	(1,281.1)	(724.2)
Conversion differences in cash flow and cash balances	(150.6)	33.0
NET INCREASE (DECREASE) IN CASH FLOW	(488.6)	(313.0)
OPENING CASH BALANCE	2,574.6	2,887.6
CLOSING CASH BALANCE	2,086.0	2,574.6

	ITEM	IBERIA	BRAZIL	MEXICO	LATAM SOUTH CENTRAL	NORTH AMERICA
I.	INSURANCE REVENUE (+)	6,978.2	4,823.7	1,376.8	3,074.2	2,584.4
	1 Release of liability for remaining coverage	6,967.0	4,639.3	1,376.5	3,073.7	2,584.4
	2 Release of insurance acquisition expenses allocated to the period	11.2	184.4	0.3	0.5	–
II.	INSURANCE SERVICE EXPENSES (-)	(6,563.2)	(3,365.8)	(1,721.0)	(2,713.5)	(2,284.9)
	1 Incurred claims and other insurance service expenses	(5,269.3)	(2,139.1)	(666.2)	(2,017.3)	(1,890.9)
	2 Acquisition costs	(1,101.8)	(1,401.7)	(283.7)	(633.8)	(563.1)
	3 Losses on onerous contract groups and reversals of those losses	(19.9)	1.5	(3.4)	(63.8)	15.2
	4 Changes in liability for incurred claims	(172.2)	173.5	(767.7)	1.4	153.9
	RESULT FROM INSURANCE SERVICE (A)	415.0	1,457.9	(344.2)	360.7	299.5
III.	REINSURANCE REVENUE (+)	793.0	352.2	931.5	665.1	248.1
IV.	REINSURANCE SERVICE EXPENSES (-)	(971.0)	(971.3)	(564.9)	(1,087.4)	(596.7)
	RESULT FROM REINSURANCE SERVICE (B)	(178.0)	(619.1)	366.6	(422.3)	(348.6)
	RESULT FROM REINSURANCE AND INSURANCE SERVICE (A)+(B)	237.0	838.8	22.4	(61.6)	(49.1)
V.	INSURANCE AND REINSURANCE SERVICE FINANCE REVENUE/EXPENSES
	1 Insurance finance revenue/expenses	(852.4)	(244.1)	21.4	(140.6)	(45.7)
	2 Reinsurance finance revenue/expenses	14.8	72.1	(36.3)	20.3	15.5
	FINANCIAL RESULT FROM INSURANCE AND REINSURANCE CONTRACTS (C)	(837.6)	(172.0)	(14.9)	(120.3)	(30.2)
VI.	FINANCE REVENUE/EXPENSES NOT RELATED TO INSURANCE SERVICE
	1 Finance revenue not related to insurance service (+)	1,578.4	386.2	99.7	358.9	116.0
	2 Finance expenses not related to insurance service (-)	(537.0)	(79.2)	(24.0)	(30.0)	(12.7)
	3 Result from equity-accounted companies	–	–	–	–	–
	a) Share in profits from equity-accounted companies	16.8	–	–	–	–
	b) Share in losses from equity-accounted companies	(12.6)	–	–	–	–
	4 Reversal of financial asset impairment provision (+)	17.7	0.9	–	0.1	–
	5 Allowance to the financial asset impairment provision (-)	(18.5)	(0.7)	–	(6.2)	(1.8)
	FINANCIAL RESULT NOT RELATED TO INSURANCE SERVICE (D)	1,044.8	307.2	75.7	322.8	101.5
	FINANCIAL RESULT (C)+(D)	207.2	135.2	60.8	202.5	71.3
VII.	OTHER INSURANCE REVENUE/EXPENSES
	1 Other non-technical revenue (+)	80.5	(2.0)	–	5.3	2.8
	2 Other non-technical expenses (-)	(132.6)	(1.2)	(0.6)	(1.9)	(1.1)
	3 Positive exchange differences (+)	17.3	–	0.4	51.0	–
	4 Negative exchange differences (-)	(19.4)	(1.0)	(18.6)	(63.2)	–
	5 Reversal of asset impairment provision (+)	–	–	–	–	–
	6 Allowance to the asset impairment provision (-)	–	–	–	–	(75.0)
	RESULT FROM OTHER INSURANCE REVENUE/EXPENSES	(54.2)	(4.2)	(18.8)	(8.8)	(73.3)
VIII.	OTHER ACTIVITIES
	1 Operating revenue (+)	241.9	10.9	9.1	38.9	3.8
	2 Operating expenses (-)	(201.9)	(23.5)	(9.6)	(33.7)	(5.9)
	3 Revenue from fixed assets and investments (+)	3.1	18.8	–	0.6	–
	4 Expenses from fixed assets and investments (-)	(1.9)	(0.6)	–	(0.1)	–
	5 Net financial income (+)	9.9	3.0	0.5	3.6	0.5
	7 Result from equity-accounted companies	–	–	–	–	–
	a) Share in profits from equity-accounted companies	2.6	–	–	–	–
	b) Share in losses from equity-accounted companies	–	–	–	–	–
	10 Reversal of asset impairment provision (+)	3.2	–	–	–	–
	11 Allowance to the asset impairment provision (-)	(2.2)	(0.1)	–	–	(1.0)
	12 Result from disposal of non-current assets held for sale, not included in discontinued activities	–	–	–	–	–
	RESULT FROM OTHER ACTIVITIES	54.7	8.5	–	9.3	(2.6)
IX.	RESULT FROM RESTATEMENT OF FINANCIAL STATEMENTS	–	–	–	(54.7)	–
X.	RESULT BEFORE TAX FROM ONGOING OPERATIONS	444.7	978.3	64.4	86.7	(53.7)
XI.	TAX ON PROFIT FROM ONGOING OPERATIONS	(77.0)	(230.4)	(15.4)	(3.4)	(6.7)
XII.	RESULT AFTER TAX FROM ONGOING OPERATIONS	367.7	747.9	49.0	83.3	(60.4)
XIII.	RESULT AFTER TAX FROM DISCONTINUED OPERATIONS	–	–	–	–	–
XIVX.	RESULT FOR THE PERIOD	367.7	747.9	49.0	83.3	(60.4)
	1 Attributable to non-controlling interests	(26.1)	(520.4)	–	(11.6)	–
	2 Attributable to the controlling company	341.6	227.5	49.0	71.7	(60.4)

	I T E M	EMEA	ASISTEN CIA MAWDY	GLOBAL RISKS	REINSUR ANCE	CORPORAT E AREAS AND CONSOLIDA TION ADJUSTME NTS	TOTAL
I.	INSURANCE REVENUE (+)	1,179.1	224.2	1,655.4	6,361.3	(3,476.3)	24,781.0
	1 Release of liability for remaining coverage	1,173.9	224.2	1,655.4	6,361.3	(3,476.3)	24,579.4
	2 Release of insurance acquisition expenses allocated to the period	5.2	–	–	–	–	201.6
II.	INSURANCE SERVICE EXPENSES (-)	(1,249.0)	(215.1)	(1,202.7)	(5,807.8)	2,776.5	(22,346.5)
	1 Incurred claims and other insurance service expenses	(964.5)	(145.1)	(1,115.8)	(3,943.4)	2,030.5	(16,121.1)
	2 Acquisition costs	(235.9)	(76.3)	(145.8)	(1,500.3)	584.1	(5,358.3)
	3 Losses on onerous contract groups and reversals of those losses	(13.8)	–	–	–	–	(84.2)
	4 Changes in liability for incurred claims	(34.8)	6.3	58.9	(364.1)	161.9	(782.9)
	RESULT FROM INSURANCE SERVICE (A)	(69.9)	9.1	452.7	553.5	(699.8)	2,434.5
III.	REINSURANCE REVENUE (+)	202.7	7.3	825.7	1,023.4	(2,182.8)	2,866.2
IV.	REINSURANCE SERVICE EXPENSES (-)	(220.3)	(12.3)	(1,254.0)	(1,474.3)	2,892.6	(4,259.6)
	RESULT FROM REINSURANCE SERVICE (B)	(17.6)	(5.0)	(428.3)	(450.9)	709.8	(1,393.4)
	RESULT FROM REINSURANCE AND INSURANCE SERVICE (A)+(B)	(87.5)	4.1	24.4	102.6	10.0	1,041.1
V.	INSURANCE AND REINSURANCE SERVICE FINANCE REVENUE/ EXPENSES
	1 Insurance finance revenue/expenses	(203.8)	–	(10.4)	(102.2)	44.8	(1,533.0)
	2 Reinsurance finance revenue/expenses	8.7	–	4.2	41.0	(44.8)	95.5
	FINANCIAL RESULT FROM INSURANCE AND REINSURANCE CONTRACTS (C)	(195.1)	–	(6.2)	(61.2)	–	(1,437.5)
VI.	FINANCE REVENUE/EXPENSES NOT RELATED TO INSURANCE SERVICE
	1 Finance revenue not related to insurance service (+)	299.1	1.1	21.1	329.8	(64.4)	3,125.9
	2 Finance expenses not related to insurance service (-)	(65.7)	(0.2)	(1.3)	(73.8)	47.3	(776.6)
	3 Result from equity-accounted companies	–	–	–	–	–	–
	a) Share in profits from equity-accounted companies	0.1	–	–	–	64.9	81.8
	b) Share in losses from equity-accounted companies	–	–	–	–	(36.9)	(49.5)
	4 Reversal of financial asset impairment provision (+)	–	–	–	2.8	–	21.5
	5 Allowance to the financial asset impairment provision (-)	(9.8)	–	–	(0.1)	–	(37.1)
	FINANCIAL RESULT NOT RELATED TO INSURANCE SERVICE (D)	223.7	0.9	19.8	258.7	10.9	2,366.0
	FINANCIAL RESULT (C)+(D)	28.6	0.9	13.6	197.5	10.9	928.5
VII.	OTHER INSURANCE REVENUE/EXPENSES
	1 Other non-technical revenue (+)	1.6	–	–	–	(0.1)	88.1
	2 Other non-technical expenses (-)	(5.5)	–	–	–	–	(142.9)
	3 Positive exchange differences (+)	58.3	–	595.2	763.6	–	1,485.8
	4 Negative exchange differences (-)	(4.1)	(0.7)	(595.2)	(764.9)	–	(1,467.1)
	5 Reversal of asset impairment provision (+)	–	–	0.5	0.9	–	1.4
	6 Allowance to the asset impairment provision (-)	–	–	–	(5.0)	–	(80.0)
	RESULT FROM OTHER INSURANCE REVENUE/EXPENSES	50.3	(0.7)	0.5	(5.4)	(0.1)	(114.7)
VIII.	OTHER ACTIVITIES
	1 Operating revenue (+) 2 Operating expenses (-)	3.8 (3.6)	258.0 (256.1)	– –	– –	40.6 (163.7)	606.8 (698.0)
	3 Revenue from fixed assets and investments (+)	–	–	–	–	8.0	30.5
	4 Expenses from fixed assets and investments (-)	–	–	–	–	(7.8)	(10.4)
	5 Net financial income (+)	0.1	(0.2)	–	–	(78.8)	(61.2)
	7 Result from equity-accounted companies	–	–	–	–	–	–
	a) Share in profits from equity-accounted companies	–	–	–	–	6.8	9.4
	b) Share in losses from equity-accounted companies	–	–	–	–	(8.5)	(8.5)
	10 Reversal of asset impairment provision (+)	–	–	–	–	0.1	3.3
	11 Allowance to the asset impairment provision (-)	–	(0.2)	–	–	(5.3)	(8.8)
	12 Result from disposal of non-current assets held for sale, not	–	–	–	–	–	–
	RESULT FROM OTHER ACTIVITIES	0.3	1.5	–	–	(208.6)	(136.9)
IX.	RESULT FROM RESTATEMENT OF FINANCIAL STATEMENTS	(13.9)	(1.6)	–	–	–	(70.2)
X.	RESULT BEFORE TAX FROM ONGOING OPERATIONS	(22.2)	4.2	38.5	294.7	(187.8)	1,647.8
XI.	TAX ON PROFIT FROM ONGOING OPERATIONS	(7.4)	0.8	(9.6)	(71.4)	39.4	(381.1)
XII.	RESULT AFTER TAX FROM ONGOING OPERATIONS	(29.6)	5.0	28.9	223.3	(148.4)	1,266.7
XIII.	RESULT AFTER TAX FROM DISCONTINUED OPERATIONS	–	–	–	–	–	–
XIVX	RESULT FOR THE PERIOD	(29.6)	5.0	28.9	223.3	(148.5)	1,266.6
	1 Attributable to non-controlling interests	(9.8)	–	–	–	(21.5)	(589.4)
	2 Attributable to the controlling company	(39.4)	5.0	28.9	223.3	(170.0)	677.2

	ITEM	IBERIA	BRAZIL	MEXICO	LATAM SOUTH CENTRAL	NORTH AMERICA
I.	INSURANCE REVENUE (+)	6,517.4	4,234.6	1,272.1	2,930.6	2,551.7
	1 Release of liability for remaining coverage	6,511.8	4,075.8	1,272.0	2,930.5	2,551.7
	2 Release of insurance acquisition expenses allocated to the period	5.6	158.8	0.1	0.1	–
II.	INSURANCE SERVICE EXPENSES (-)	(6,119.9	(3,585.8)	(871.6)	(2,874.8)	(2,457.2)
	1 Incurred claims and other insurance service expenses	(4,914.4	(2,492.2)	(665.1)	(2,240.7)	(1,871.8)
	2 Acquisition costs	(1,030.9	(1,245.3)	(234.5)	(574.4)	(566.5)
	3 Losses on onerous contract groups and reversals of those losses	(25.6)	(11.4)	0.4	(16.7)	(37.0)
	4 Changes in liability for incurred claims	(149.0)	163.1	27.6	(43.0)	18.1
	RESULT FROM INSURANCE SERVICE (A)	397.5	648.8	400.5	55.8	94.5
III.	REINSURANCE REVENUE (+)	676.9	691.6	164.1	957.8	308.3
IV.	REINSURANCE SERVICE EXPENSES (-)	(859.5)	(840.0)	(564.1)	(1,022.0)	(578.4)
	RESULT FROM REINSURANCE SERVICE (B)	(182.6)	(148.4)	(400.0)	(64.2)	(270.1)
	RESULT FROM REINSURANCE AND INSURANCE SERVICE (A)+(B)	214.9	500.4	0.5	(8.4)	(175.6)
V.	INSURANCE AND REINSURANCE SERVICE FINANCE REVENUE/EXPENSES	–	–	–	–	–
	1 Insurance finance revenue/expenses	50.7	(167.4)	11.2	(15.7)	58.3
	2 Reinsurance finance revenue/expenses	(86.1)	102.6	(15.6)	8.4	(19.6)
	FINANCIAL RESULT FROM INSURANCE AND REINSURANCE CONTRACTS (C)	(35.4)	(64.8)	(4.4)	(7.3)	38.7
VI.	FINANCE REVENUE/EXPENSES NOT RELATED TO INSURANCE SERVICE
	1 Finance revenue not related to insurance service (+)	576.5	280.5	69.9	256.3	65.9
	2 Finance expenses not related to insurance service (-)	(454.5)	(76.4)	(31.5)	(30.1)	(10.4)
	3 Result from equity-accounted companies	–	–	–	–	–
	a) Share in profits from equity-accounted companies	17.2	–	–	–	–
	b) Share in losses from equity-accounted companies	(11.6)	–	–	–	–
	4 Reversal of financial asset impairment provision (+)	12.5	0.5	(1.3)	1.2	–
	5 Allowance to the financial asset impairment provision (-)	(15.8)	(0.5)	–	(2.7)	–
	FINANCIAL RESULT NOT RELATED TO INSURANCE SERVICE (D)	124.3	204.1	37.1	224.7	55.5
	FINANCIAL RESULT (C)+(D)	88.9	139.3	32.7	217.4	94.2
VII.	OTHER INSURANCE REVENUE/EXPENSES
	1 Other non-technical revenue (+)	76.0	0.2	–	3.6	0.6
	2 Other non-technical expenses (-)	(163.5)	–	(0.8)	(2.9)	(1.3)
	3 Positive exchange differences (+)	26.1	3.9	9.1	64.2	–
	4 Negative exchange differences (-)	(24.6)	–	(8.1)	(55.9)	(0.5)
	5 Reversal of asset impairment provision (+)	–	–	–	–	–
	6 Allowance to the asset impairment provision (-)	–	–	–	–	–
	RESULT FROM OTHER INSURANCE REVENUE/EXPENSES	(86.0)	4.1	0.2	9.0	(1.2)
	VIII. OTHER ACTIVITIES
	1 Operating revenue (+)	361.4	13.0	6.7	39.7	3.9
	2 Operating expenses (-)	(320.4)	(12.8)	(6.1)	(31.8)	(5.7)
	3 Revenue from fixed assets and investments (+)	14.2	9.6	–	0.2	–
	4 Expenses from fixed assets and investments (-)	(2.6)	(0.3)	–	–	–
	5 Net financial income (+)	1.2	(1.2)	0.4	3.5	0.2
	7 Result from equity-accounted companies	–	–	–	–	–
	a) Share in profits from equity-accounted companies	2.9	–	–	–	–
	b) Share in losses from equity-accounted companies	–	–	–	–	–
	10 Reversal of asset impairment provision (+)	2.6	–	–	–	–
	11 Allowance to the asset impairment provision (-)	(3.2)	–	–	–	–
	Result from disposal of non-current assets held for sale, not included	–	–	–	–	–
	12 in discontinued activities
	RESULT FROM OTHER ACTIVITIES	56.1	8.3	1.0	11.6	(1.6)
IX.	RESULT FROM RESTATEMENT OF FINANCIAL STATEMENTS	–	–	–	(41.7)	–
X.	RESULT BEFORE TAX FROM ONGOING OPERATIONS	273.9	652.1	34.4	187.9	(84.2)
XI.	TAX ON PROFIT FROM ONGOING OPERATIONS	(56.6)	(165.2)	(6.6)	(22.4)	14.8
XII.	RESULT AFTER TAX FROM ONGOING OPERATIONS	217.3	486.9	27.8	165.5	(69.4)
	XIII. RESULT AFTER TAX FROM DISCONTINUED OPERATIONS	–	–	–	–	–
XIV	RESULT FOR THE PERIOD	217.3	486.9	27.8	165.5	(69.4)
	1 Attributable to non-controlling interests	27.6	348.3	–	7.9	–
	2 Attributable to the controlling company	189.7	138.6	27.9	157.3	(69.3)

	I T E M	EMEA	ASISTENCI A-MAWDY	GLOBAL RISKS	REINSUR ANCE	CORPORATE AREAS AND CONSOLIDAT ION ADJUSTMEN TS	TOTAL
I.	INSURANCE REVENUE (+)	1,139.6	280.9	1,527.7	5,425.5	(3,162.9)	22,717.
	1 Release of liability for remaining coverage	1,130.6	280.9	1,527.7	5,425.5	(3,162.8)	22,543.
	2 Release of insurance acquisition expenses allocated to the period	9.0	–	–	–	–	173.6
II.	INSURANCE SERVICE EXPENSES (-)	(1,177.4	(265.6)	(1,417.6	(4,839.	3,204.3	(20,405.
	1 Incurred claims and other insurance service expenses	(900.9)	(160.5)	(701.0)	(3,335.4	1,710.6	(15,571.
	2 Acquisition costs	(264.9)	(99.9)	(121.0)	(1,338.8	561.4	(4,914.8
	3 Losses on onerous contract groups and reversals of those losses	1.9	–	–	–	–	(88.4)
	4 Changes in liability for incurred claims	(13.5)	(5.2)	(595.6)	(165.6)	932.4	169.3
	RESULT FROM INSURANCE SERVICE (A)	(37.8)	15.3	110.1	585.7	41.4	2,311.8
III.	REINSURANCE REVENUE (+)	175.3	9.7	1,095.4	879.5	(2,327.9)	2,630.7
IV.	REINSURANCE SERVICE EXPENSES (-)	(220.6)	(17.5)	(1,177.6	(1,397.	2,601.4	(4,075.5
	RESULT FROM REINSURANCE SERVICE (B)	(45.3)	(7.8)	(82.2)	(517.7)	273.5	(1,444.8
	RESULT FROM REINSURANCE AND INSURANCE SERVICE (A)+(B)	(83.1)	7.5	27.9	68.0	314.9	867.0
V.	INSURANCE AND REINSURANCE SERVICE FINANCE REVENUE/EXPENSES
	1 Insurance finance revenue/expenses	284.5	–	54.2	375.1	(608.5)	42.4
	2 Reinsurance finance revenue/expenses	0.7	–	(24.2)	(167.4)	294.9	93.7
	FINANCIAL RESULT FROM INSURANCE AND REINSURANCE CONTRACTS (C)	285.2	–	30.0	207.7	(313.5)	136.2
VI.	FINANCE REVENUE/EXPENSES NOT RELATED TO INSURANCE SERVICE	–	–	–	–	–	–
	1 Finance revenue not related to insurance service (+)	102.4	0.7	8.8	172.7	46.1	1,579.8
	2 Finance expenses not related to insurance service (-)	(399.1)	(0.2)	(30.0)	(258.4)	143.4	(1,147.2
	3 Result from equity-accounted companies	–	–	–	–	–	–
	a) Share in profits from equity-accounted companies	0.2	–	–	–	(0.6)	16.8
	b) Share in losses from equity-accounted companies	–	–	–	–	10.0	(1.6)
	4 Reversal of financial asset impairment provision (+)	(0.2)	–	–	–	9.2	21.9
	5 Allowance to the financial asset impairment provision (-)	(6.2)	–	–	(1.7)	(0.3)	(27.2)
	FINANCIAL RESULT NOT RELATED TO INSURANCE SERVICE (D)	(302.9)	0.5	(21.2)	(87.4)	207.8	442.5
	FINANCIAL RESULT (C)+(D)	(17.7)	0.5	8.8	120.3	(105.7)	578.7
VII.	OTHER INSURANCE REVENUE/EXPENSES
	1 Other non-technical revenue (+)	2.5	–	–	–	–	82.9
	2 Other non-technical expenses (-)	(3.2)	–	–	–	–	(171.7)
	3 Positive exchange differences (+)	68.2	–	572.3	992.4	–	1,736.2
	4 Negative exchange differences (-)	(31.7)	(1.2)	(576.8)	(978.1)	–	(1,676.9
	5 Reversal of asset impairment provision (+)	–	–	1.2	1.9	–	3.1
	6 Allowance to the asset impairment provision (-)	–	–	–	–	–	–
	RESULT FROM OTHER INSURANCE REVENUE/EXPENSES	35.8	(1.2)	(3.3)	16.2	–	(26.4)
VIII	OTHER ACTIVITIES
	1 Operating revenue (+)	4.2	218.3	–	–	(120.0)	527.2
	2 Operating expenses (-)	(3.5)	(231.6)	–	–	11.4	(600.5)
	3 Revenue from fixed assets and investments (+)	–	(0.1)	–	–	17.9	41.8
	4 Expenses from fixed assets and investments (-)	–	–	–	–	(6.3)	(9.2)
	5 Net financial income (+)	–	(4.4)	–	–	(63.7)	(64.0)
	7 Result from equity-accounted companies	–	–	–	–	–	–
	a) Share in profits from equity-accounted companies	–	–	–	–	11.8	14.7
	b) Share in losses from equity-accounted companies	–	–	–	–	(2.6)	(2.6)
	10 Reversal of asset impairment provision (+)	–	0.5	–	–	(0.4)	2.7
	11 Allowance to the asset impairment provision (-)	–	–	–	–	(19.5)	(22.7)
	Result from disposal of non-current assets held for sale, not 12 included in discontinued activities	–	23.5	–	–	–	23.5
	RESULT FROM OTHER ACTIVITIES	0.7	6.2	–	–	(171.4)	(89.1)
IX.	RESULT FROM RESTATEMENT OF FINANCIAL STATEMENTS	(16.6)	(2.0)	–	–	–	(60.3)
X.	RESULT BEFORE TAX FROM ONGOING OPERATIONS	(80.9)	11.0	33.4	204.5	37.6	1,269.7
XI.	TAX ON PROFIT FROM ONGOING OPERATIONS	14.4	(3.5)	(8.3)	(54.6)	(8.2)	(296.2)
XII.	RESULT AFTER TAX FROM ONGOING OPERATIONS	(66.5)	7.5	25.1	149.9	29.4	973.5
XIII	RESULT AFTER TAX FROM DISCONTINUED OPERATIONS	–	–	–	–	–	–
	XIV RESULT FOR THE PERIOD	(66.5)	7.5	25.1	149.9	29.4	973.5
	1 Attributable to non-controlling interests	6.6	0.3	–	–	19.4	410.1

F) SUPPLEMENTARY FINANCIAL INFORMATION BY PRODUCT AND GEOGRAPHICAL AREA

1. CONSOLIDATED ORDINARY REVENUE FROM EXTERNAL CLIENTS IN FINANCIAL YEARS ENDING DECEMBER 31, 2023 AND 2022

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

1.a) Information by product

Products	2023	2022
Life	3,385.4	3,072.5
Automobile	6,457.2	6,329.7
Homeowners and commercial risks	3,154.3	2,887.4
Health	1,721.9	1,559.6
Accidents	270.7	281.8
Other Non-Life	8,450.9	7,779.5
Reinsurance	9,865.9	8,928.2
Other Activities	1,139.2	1,116.8
Consolidation adjustments	(6,191.6)	(6,080.3)
TOTAL	28,253.9	25,875.2
Figures in millions of euros

1.b) Information by country

Geographic Area / Countries	2023	2022
IBERIA
Spain	7,823.4	7,394.5
Portugal	189.5	161.1
BRAZIL	5,186.8	4,939.2
MEXICO	2,317.4	1,442.9
LATAM SOUTH CENTRAL
Peru	929.8	1,039.7
Chile	604.0	783.0
Dom. Republic	470.8	458.1
Panama	275.4	279.5
Argentina	158.6	259.8
Colombia	522.8	377.8
Other	817.3	730.2
NORTH AMERICA
United States of America	2,458.9	2,409.7
Puerto Rico	377.4	454.2
EURASIA
Germany	482.7	455.3
Italy	338.4	365.9
Malta	139.0	135.0
Turkey	425.4	308.0
Other	–	54.8
ASISTENCIA-MAWDY	489.4	508.9
GLOBAL RISKS	2,481.1	2,623.1
REINSURANCE	7,384.7	6,305.0
CORPORATE AREAS
AND CONSOLIDATION ADJUSTMENTS	(5,618.9)	(5,610.5)
TOTAL	28,253.9	25,875.2

Figures in millions of euros

Insurance and reinsurance revenue, as well as operating revenue from other activities, are considered as ordinary revenue.

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

2. NON-CURRENT ASSETS AT DECEMBER 31, 2023 AND 2022

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

Geographic Area / Countries	2023	2022
IBERIA
Spain	1,844.5	2,002.8
Portugal	67.3	48.0
BRAZIL	782.8	654.1
MEXICO	175.7	173.0
LATAM SOUTH CENTRAL
Peru	191.7	161.0
Chile	17.6	27.2
Dom. Republic	46.8	37.4
Panama	54.4	43.9
Argentina	25.4	41.7
Colombia	46.4	43.8
Other	73.9	68.3
NORTH AMERICA
United States of America	244.5	258.1
Puerto Rico	56.1	73.1
EMEA
Germany	26.4	22.8
Italy	63.1	70.9
Malta	155.5	146.6
Turkey	66.2	47.4
ASISTENCIA-MAWDY	103.8	110.3
GLOBAL RISKS	–	–
REINSURANCE	59.9	72.5
CORPORATE AREAS
AND CONSOLIDATION ADJUSTMENTS	473.3	483.7
TOTAL	4,575.3	4,586.6

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 6.8 herein regarding the latter.

G) CONSOLIDATED ANNUAL REPORT

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.

In 2023, the MAPFRE Group business activities were carried out through the organizational structure comprising four Business Units (Insurance, Assistance, Global Risks and Reinsurance), and five Regional Areas: Iberia (Spain and Portugal), Brazil, LATAM South Central (Argentina, Chile, Colombia, Ecuador, Paraguay, Peru, Uruguay, Venezuela, the Central America subregion and Dominican Republic), North America (United States and Puerto Rico) and EMEA (Europe and Middle East), and Mexico as a strategic country.

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, People and Organization, External Relations and Communications, General Counsel and Legal Affairs, Operational Transformation, Technology and Operations) 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 is committed to 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 adaptating to the legal and commercial particularities of each of the markets in which it is present are some of the key factors of success of the company's business model.

The individual and consolidated annual accounts were prepared by the Board of Directors on February 13, 2024 using the single electronic reporting format set out in Delegated Regulation (EU) 2019/815. They 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 governing body.

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 homogenization adjustments.

The consolidated annual accounts have been prepared on the cost model basis, except for financial assets at fair value through OCI and financial assets at fair value through P&L.

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 2023. However, had there been any, their early adoption would not have affected the Group's financial situation and results.

The figures presented in the Consolidated Annual Accounts have been rounded for ease of reporting. Therefore, the totals of the rows or columns may not coincide with the arithmetic sums of the amounts included therein.

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:
  • IBERIA
    • BRAZIL
    • MEXICO
    • LATAM SOUTH CENTRAL
    • NORTH AMERICA
    • EMEA
• ASSISTANCE MAWDY
• GLOBAL RISKS
• REINSURANCE

Starting in January 2023, LATAM NORTH and LATAM SOUTH became one single area called LATAM SOUTH CENTRAL, and Mexico is considered a strategic country and stops belonging to the regional area LATAM NORTH. Additionally, the Regional Area EURASIA is renamed Regional Area EMEA. The information corresponding to 2022 has been restated for comparison purposes.

Revenues and expenses from the Insurance business also include complementary activities relating to asset and real estate management, 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.

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:

• Life
• 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

In 2023, there have been no relevant changes in accounting policies, estimates or errors that could have impacted the Group financial position or results.

2.5. COMPARISON OF INFORMATION

There are no reasons preventing the comparison of the consolidated annual accounts of this reporting period with those of the previous period, and 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.

In 2023 the Group has applied, for the first time, the standards EU-IFRS 17 regarding Insurance Contracts and EU-IFRS 9 regarding Financial Instruments. Said standards replace EU-IFRS 4 and EU-IAS 39, respectively. The information from December 21, 2022 related to insurance contracts contained in the financial statements attached herein as well as in the details from annual accounts have been restated, exclusively for comparison purposes.

MAPFRE Group, in line with EU-IFRS 17 and EU-IFRS 9 in their initial joint application, has decided to adapt, for comparison purposes, EU-IFRS 9 classification and measurement criteria to those financial assets strictly related to insurance contracts. This approach, which is called "classification overlay," permits not applying impairment requirements to the comparative information, and is what the Group has followed.

The transition balance sheet and main impacts from the application of the new standards is provided below.

Transition Balance sheet

MAPFRE Group used a retrospective approach for the majority of Non-Life insurance and accepted and ceded reinsurance contracts as well as Life insurance contracts with a duration of less than one year, and for those in which, although duration is greater than one year, it is not expected that the assessment varies materially from the building block approach (BBA). To this end:

• All contract groups have been identified, recognized and measured as if EU-IFRS 17 had always been applied.
• Any items recorded in the financial statements which would not exist if EU-IFRS 17 had always been applied have been derecognized, and
• Any net difference that could arise was recorded in equity.

Additionally, the fair value approach was generally used for those Non-Life and Life insurance contracts, for which the retrospective approach is impracticable. The fair value approach considers the determination of the Contractual Service Margin (hereinafter CSM) or the loss component at the date of transition for a contract group based on the difference between the fair value and the fulfillment cash flows for the group of contracts at that date. The Group measures fair value of the insurance contracts as the sum of the present value of EU-IFRS 17 fulfillment cash flows adjusted to reflect the perspective of a market participant, plus an additional margin that a market participant would require to provide coverage.

The estimated fair value of insurance contracts uses a combination of cash flows that represent the weighted average of the probability of all possible future cash flows (i.e expected cash flows) as a starting point. The estimates are based on the same assumptions as those of the estimates used to calculate the future cash flows for EU-IFRS 17, as it is expected that they are they same as a market participant would consider.

Additionally, the calculation also contemplates an additional margin similar to the EU-IFRS 17 item for non-financial risk adjustment, but under EU-IFRS 13 it is adjusted with the following assumptions:

a. The target capital ratio is aligned with MAPFRE's risk appetite policies.

• b. The cost of capital rate is aligned with the compensation necessary in each market to maintain capital requirements.
• c. The use of additional capital, which increases the list of risks covered in the EU-IFRS 17 fulfillment cash flows, so that all risks are covered in the cost of capital.

The following is a reconciliation between the consolidated transition balance sheet under EU-IFRS 4 and EU-IFRS 17:

BALANCE SHEET RECONCILIATION

ASSETS	December 31, 2021	Reclassifications	Measurement changes	January 1, 2022
INTANGIBLE ASSETS	2,911.2	–	(136.8)	2,774.4
PROPERTY, PLANT AND EQUIPMENT	1,295.0	–	–	1,295.0
INVESTMENTS	39,243.0	2,741.3	5.1	41,989.4
INVESTMENTS ON BEHALF OF LIFE INSURANCE POLICYHOLDERS BEARING THE INVESTMENT RISK	2,957.3	(2,957.3)
INSURANCE CONTRACT ASSETS			14.2	14.2
REINSURANCE CONTRACT ASSETS			5,440.0	5,440.0
INVENTORIES	54.0	–	–	54.0
PARTICIPATION OF REINSURANCE IN TECHNICAL PROVISIONS	6,084.6	–	(6,084.6)
DEFERRED TAX ASSETS	299.6	–	0.2	299.8
RECEIVABLES	5,594.7	–	(4,659.8)	934.9
CASH AND EQUIVALENTS	2,887.6	–	–	2,887.6
ACCRUAL ADJUSTMENTS	1,902.5	–	(1,699.9)	202.6
OTHER ASSETS	247.4	–	–	247.4
NON-CURRENT ASSETS HELD FOR SALE AND FROM DISCONTINUED OPERATIONS	377.3	–	(6.7)	370.6
TOTAL ASSETS	63,854.2	(216.0)	(7,128.3)	56,509.9

Figures in millions of euros

EQUITY AND LIABILITIES	December 31, 2021	Reclassifications	Measurement changes	January 1, 2022
EQUITY	9,666.6	–	(243.0)	9,423.6
Equity attributable to the controlling company's shareholders	8,463.6	–	(214.9)	8,248.7
Non-controlling interests	1,203.0	–	(28.1)	1,174.9
SUBORDINATED LIABILITIES	1,122.2	–		1,122.2
INSURANCE CONTRACT LIABILITIES			38,198.7	38,198.7
REINSURANCE CONTRACT LIABILITIES			23.0	23.0
TECHNICAL PROVISIONS	39,968.3	–	(39,968.3)
TECHNICAL PROVISIONS FOR LIFE INSURANCE WHERE POLICYHOLDERS BEAR INVESTMENT RISK	2,957.3	–	(2,957.3)
PROVISIONS FOR RISKS AND EXPENSES	653.6	–	–	653.6
DEPOSITS RECEIVED ON CEDED AND RETROCEDED REINSURANCE	82.4	(82.4)
DEFERRED TAX LIABILITIES	537.7	–	(19.0)	518.7
DEBT	8,441.8	(133.6)	(1,945.9)	6,362.3
ACCRUAL ADJUSTMENTS	300.5	–	(210.4)	90.1
LIABILITIES LINKED TO NON-CURRENT ASSETS HELD FOR SALE AND FROM DISCONTINUED OPERATIONS	123.8	–	(6.1)	117.7
TOTAL EQUITY AND LIABILITIES	63,854.2	(216.0)	(7,128.3)	56,509.9

Figures in millions of euros

The main changes from the application of EU-IFRS 17 are:

Assets

• Receivables for direct insurance operations are mainly included, under the new standard, in the liability for remaining coverage, which reduces the heading for "Receivables".
• The accrual of commissions and acquisition expenses is classified in the liability for remaining coverage heading while under EU-IFRS 4 it was included in other assets.
• While reinsurance participation is derecognized in technical provisions, it is reflected in the heading "Reinsurance contract assets" under the new standard.

Liabilities

• The structure changes, substituting technical provisions for insurance liabilities classified by the valuation approach used. Measurement of insurance liabilities is modified as indicated in Note 5.14 herein, highlighting the impact derived from the financial discount and the inclusion of estimated cash inflows that reduce the liability.
• With regard to the heading "Debt", as well as with Receivables, they are reduced as they are included, under EU-IFRS 17, in the asset for remaining coverage in the case of Ceded reinsurance receivables and in the Liability for remaining coverage for direct insurance and accepted reinsurance.

The accompanying table provides a breakdown of the key impacts on equity as a result of the application of the new standard:

ITEM	January 1, 2022
Capital	308.0
Share premium	1,506.7
Reserves	6,407.1
Treasury stock	(62.9)
Reserves for valuation change adjustments	(971.0)
Retained results	1,275.7
EU-IFRS 4 SHAREHOLDERS' EQUITY	8,463.6
Discounting of provisions at current value and other	131.1
Risk margin (non-financial risk adjustment)	(252.0)
Loss component	(77.0)
VIF elimination	(24.0)
Increase in fixed income market value under IFRS 9	7.0
EU-IFRS 17 SHAREHOLDERS' EQUITY	8,248.7

Figures in millions of euros

Impact from the entry into force of the standards

The entry into force of the abovementioned standards had the following impacts on the Group consolidated financial statements:

EU-IFRS 17:

The equity impact at transition (January 1, 2022) has implied a 2.5 percent reduction of shareholders' equity.

The Contractual Service Margin (CSM) resulting form the application of the new operating standards coming from insurance contracts reached 2.2 billion euros.

EU-IFRS 9:

The reconciliation between the book values of financial assets according to EU-IAS 39 and the balances according to EU-IFRS 9 at January 1, 2023 is shown in the accompanying chart:

Item	Measurement under EU-IAS 39	Classification and measurement	Measurement	Impairment	Measurement under EU IFRS 9
	12.31.2022	of financial instruments	under EU IFRS 9		1/1/2023
Financial assets held to maturity	1,381.2	(1,381.2)
Financial assets at amortized cost		1,266.9	1,266.9	(3.9)	1,263.0
Financial assets available for sale	25,052.6	(25,052.6)
Financial assets at fair value through OCI. Equity Instruments		1,003.1	1,003.1		1,003.1
Financial assets at fair value through OCI. Fixed income and other		19,300.1	19,300.1	(51.8)	19,248.3
Financial assets held for trading	5,189.6	(5,189.6)
Financial assets at fair value with changes through P&L. Obligatory		288.7	288.7	–	288.7
Financial assets at fair value through P&L. Not obligatory		12,769.6	12,769.6		12,769.6
Investments on behalf of Life insurance policyholders bearing the investment risk	3,037.1	(3,037.1)
FINANCIAL INVESTMENTS	34,660.5	(32.1)	34,628.4	(55.7)	34,572.7

Figures in millions of euros

The impact of the (51.8)-million-euro gross impairment associated with the portfolio of financial assets through OCI has no impact on equity. Therefore, it does not affect the market value reflected in the balance sheet for this portfolio.

The classification and valuation requirements applied by the company in line with EU-IFRS 9 are explained in note 5.5 "Financial Investments" herein. The Group has revised the existing business models and contractual characteristics of the portfolios in order to establish their classification according to the new standard, and has defined criteria to determine acceptable frequency of and the reasons for sales that would allow the instrument to remain in the category that aims to receive contractual cash flows. As such, it is important to highlight the following reclassifications:

• a. Reclassification of debt securities to the portfolio at fair value through P&L, in order to significantly reduce the accounting asymmetry that arose from the different recognition of these assets compared to the associated liabilities.
• b. Reclassification of certain investments in equity instruments to the category fair value through OCI, for those equity instruments not associated with insurance liabilities, the aim of which is to hold them in the medium/long term and not managing them using a trading model.

The reclassifications of portfolios have implied the transfer of 214.4 million euros between equity items, from the heading "Valuation change adjustments" to a "Transition reserves" item corresponding to the unrealized losses of financial instruments reclassified to fair value through P&L, previously classified as financial assets available for sale.

The following table shows the reconciliation at transition of impairment provisions under EU-IAS 39 and provisions for expected loss under EU-IFRS 9.

Impairment provisions	Impairment provision EU-IAS 39 12.31.2022	Impairment impact	Provision for expected loss UE-IFRS 9 01.01.2023
Held to maturity portfolio/ amortized cost	–	–	(3.9)
Available for sale portfolio / fair value with changes in OCI	(67.0)	15.2	(51.8)
TOTAL	(67.0)	15.2	(55.7)

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 corporate activity.

Detailed information regarding the key results for the period arising from the loss of control in controlled companies as a result of their exit from the consolidation scope are provided in Note 6.8 (Annex 1 includes a breakdown of the above mentioned losses of control).

The overall effect on the Group's consolidated equity, financial position and results in 2023 and 2022 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:

• Assets and liabilities from insurance contracts (Note 6.12).
• Classification of financial instruments (Notes 5.5 and 6.4)
• Impairment losses on certain assets (Notes 6.1, 6.2 and 6.4).
• The calculation of provisions for risks and expenses (Note 6.13).
• The actuarial calculation of postemployment remuneration-related commitments and liabilities (Note 6.17).
• The useful life of intangible assets and of property, plant & equipment items (Notes 5.1 and 6.2).
• 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. CONSOLIDATION

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 shareholding of controlled companies attached as Annex 1 to the consolidated annual report.

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

When control of a subsidiary is lost, the book value at the date of loss of control of the assets and liabilities from the subsidiary are derecognized in the accounts, and the fair value of the compensation received is recognized, recording the difference as a loss or gain in the result for the period.

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.
• MAPFRE is granted the power to appoint and revoke the CEO, Finance Manager, Actuarial Manager, and 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 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 prior to the above mentioned 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 made 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 equityaccounted 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, 2023 and 2022.

3.2. MUTUAL FUNDS

Mutual funds managed by Group companies with greater than 40 percent stake are consolidated using the global consolidation method. However, starting at 20 percent participation, the relevance of changes in the exposure to their returns is analyzed.

3.3. CONVERSION OF ANNUAL ACCOUNTS OF FOREIGN COMPANIES INCLUDED IN THE CONSOLIDATION

The functional and presentation currency of MAPFRE Group is the euro. Accordingly, the balances and transactions 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.

Currency conversion differences resulting from the application of the abovementioned procedure, as well as those arising from the conversion of loans and other hedging instruments of investments in foreign businesses in foreign currencies are presented as a separate item in the "Consolidated Statement of Comprehensive Income" and are recognized in equity in the line "Currency conversion differences", deducting the part of said difference that corresponds to Non-controlling interests.

The goodwill and fair value adjustments of the assets and liabilities that arise from the acquisition of Group companies with a functional currency other than the euro are treated as assets and liabilities of the foreign business, and are stated in the functional currency of the foreign business and restated 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 EU-IAS 29 "Financial reporting in hyperinflationary economies".

In the years 2022 and 2023, Venezuela, Argentina and Turkey were considered to be countries with hyperinflationary economies.

The Group accounting policy for recording operations in hyperinflationary economies consists of recording in Currency conversion differences both the revaluation of non-monetary items and the currency conversion differences generated from the conversion to euros of the restated financial statements of subsidiaries in these countries.

The amounts recognized in Currency conversion differences in the last two years from these effects are the following:

Item	Balance 12.31.21	Variation 2022	Balance 12.31.22	Variation 2023	Balance 12.31.23
Restatement for inflation	603.2	92.6	695.8	73.0	768.8
Currency conversion differences	(1,134.0)	(432.0)	(1,566.0)	(91.7)	(1,657.7)
Net	(530.8)	(339.4)	(870.2)	(18.7)	(888.9)

Figures in millions of euros

The variation in currency conversion differences in 2022 includes 386.6 million euros from subsidiaries in Turkey coming from previous years.

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

Country	Inflation (%)		currency per euro)	Exchange rate (units of		Results from restatement		Equity
	2023	2022	2023	2022	2023	2022	2023	2022
Argentina	211	95	893	189	(56.2)	(43.5)	64.4	95.7
Venezuela	195	250	117	40	(0.2)	(0.2)	4.7	5.2
Turkey	65	64	33	20	(13.9)	(16.6)	58.7	49.6
Total					(70.2)	(60.3)	127.8	150.5

Figures in millions of euros

Regarding the exchange rate shown for Venezuela, given that there is not reliable official information, both at the close of 2023 and 2022, for 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.

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.

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 potential ordinary share—is shown in the accompanying chart:

Item	2023	2022
Net profit attributable to controlling company's shareholders (million euros)	677.2	563.6
Weighted average number of ordinary shares outstanding (million)	3,064.2	3,054.6
Basic earnings per share (euros)	22.1	18.5

4.2. DIVIDENDS

The breakdown of the dividends from the controlling company in the last two years is shown in the accompanying chart:

	Total dividend		Dividend per share
Item	(million euros)		(euro cents)
	2023	2022	2023	2022
Interim dividend	184.8	184.8	6.00	6.00
Final dividend	277.0	261.7	9.00	8.50
TOTAL	461.8	446.5	15.00	14.50

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 (to December 31, 2023 in the case of the final dividend of this year).

The total dividend for 2023 was proposed by the Board of Directors and is pending approval by the Ordinary Annual General Meeting.

The planned dividend distribution complies with the requirements and limitations that are set out in the legal regulations and the corporate bylaws, and is based on a thorough and careful analysis of the Group situation, without compromising its future solvency or the protection of policyholders' and clients' interests, and is carried out in the context of the supervisory recommendations in this respect.

In 2023 the controlling company distributed an interim dividend equivalent to a total amount of 184,761,730.50 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 in the accompanying chart.

Item	Date of Resolution 10/27/2023
Cash available on date of the resolution	72.3
Increases in cash forecast within one year	1,036.2
(+) From expected current collection transactions	538.7
(+) From financial transactions	497.5
Decreases in cash forecast within one year	(788.0)
(-) From expected current payment transactions	(110.0)
(-) From expected financial transactions	(678.0)
Cash available within one year	320.5

5. ACCOUNTING POLICIES

The accounting policies applied to the following items 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

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 acquisition, except for 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.

• Negative consolidation difference

Where the value of the identifiable assets acquired minus 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 cashgenerating 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 transaction 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.

Other intangible assets

This includes service concession agreements granted by different public entities, as well as distribution and commercial agreements entered into by the Group. The useful life is determined according to the contractual terms.

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 useful life following a linear method. The amortization has been recorded as "Provision for amortization" in the expense account by nature. IT platforms are mostly amortized between four and eight years.

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.

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 acquired business 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 non-controlling interests.

Initially, the identifiable assets and liabilities assumed are measured 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 interests in the acquiree's equity previously held 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 investments are valued at their net acquisition cost minus their accumulated amortization and, where applicable, accumulated impairment losses.

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:

ITEM GROUP	YEARS	ANNUAL RATE
Buildings and other structures	50-25	2%-4%
Vehicles	6	16%
Furniture	10	10%
Fittings	20-10	5%-10%
Data processing equipment	4	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. LEASING

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

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

Lease term

The lease term is determined according to the noncancellable 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 of the debt for said lease.

Subsequently, the right-of-use asset will be measured at cost minus amortization and the accumulated losses from impairment, and adjusted where necessary by new measurement of the liability. In the case of contract review, the liability will be newly measured, discounting the modified lease payments.

The result for the period will recognize amortization 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 rate for the lease, and presenting them as a caption Receivables. Subsequently, financial income is recognized during the lease term, recording a constant periodic return on net investment. For operating 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

Those financial assets presented as an equity instrument from another entity, as a contractual right to receive cash or other financial asset, or to exchange financial assets or liabilities in potentially favorable conditions, are included as financial investments.

Initial recognition

In their initial recognition on the balance sheet, all financial investments are recognized at the fair value of the compensation received plus, in the case of financial investments not classified in "fair value through P&L", 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 an orderly transaction between market participants on the date of valuation.

Classification

The classification of financial assets at initial recognition depends on the business model under which they are being managed and the characteristics of their contractual cash flows.

The Group business model does not evaluate instruments individually, but by aggregated portfolio based on observable factors such as:

• The way in which key personnel are informed of business model performance and the assets held in said model.
• The risks related to the business model (and the financial assets held in said model) and, specifically, the way said risks are managed.
• How business managers are compensated.
• The expected frequency, value and periodicity of the managed assets.

The contractual cash flows of the financial assets require an analysis to determine if they correspond to solely payments of principal and interest (SPPI) over the pending amount of principal at the beginning of the transaction.

In order to carry out the SPPI analysis, the Group applies professional judgement and considers relevant factors like the currency in which the financial asset is denominated and the period established for the interest rate.

Based on the above, financial assets are classified in the following categories:

a) Financial assets at amortized cost

This category includes financial assets that meet the following conditions:

• They are managed under a business model with the aim of holding the instrument to obtain contractual cash flows; and
• The contractual terms of the financial asset give way, on specific dates, to cash flows that are solely payments of principal and interest (SPPI) on the pending principal.

After initial recognition, they are valued at amortized cost, using the effective interest rate method

b) Financial assets at fair value through OCI

Those financial assets that meet the following conditions are classified in this category:

• They are managed under a business model which objectives are met by receiving contractual cash flows and the sale of the assets; and
• The contractual terms of the financial asset give way, on specific dates, to cash flows that are solely payments of principal and interest (SPPI) on the pending principal.

The main assets included are:

• Debt securities that meet the abovementioned conditions.
• Financial swaps are included in this classification, as they are considered to be equivalent to debt securities or loans, therefore better reflecting the economic reality of the financial instrument.
• Equity instruments from companies that are not controlled, associated or joint arrangements, initially and irrevocably voluntarily assigned to this portfolio, which should not be classified as held for trading.

The assets assigned to this portfolio are subsequently measured at fair value, recording in OCI any gains or losses that arise as a result of the changes in fair value.

Income from interest and the results of conversion differences are recorded directly in P&L the same as for financial assets measured at amortized cost.

When the Group has more than one investment in the same instrument, they are derecognized at average cost. In the accounting derecognition of the investment, accumulated gains and losses previously recognized in OCI are reclassified to P&L in the case of debt securities, and to a reserves line in the case of investments in equity instruments

c) Financial assets measured at fair value through P&L

This category corresponds to those financial assets whose cash flow characteristics do not meet the SPPI criteria or they are held to obtain contractual cash flows and/or to sell.

This mainly includes mutual funds, as well as debt securities assigned to this portfolio by Management at initial recognition in order to significantly reduce the accounting asymmetries that arise from the difference in recognition between the assets and the related liabilities.

After initial recognition they are recorded at fair value and changes in fair value are recorded in P&L.

Valuation

The fair value measurement of financial investments 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:
• 1. Zero coupon swap curve of the issuance currency, which is considered to be the best approximation to the risk-free interest rate.
• 1. 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.
  2. 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.

31 Consolidated Annual Accounts 2023

• Fixed-income assets with complex future cash 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 issues on the market or any unquoted issues from an issuer with no similar issues. In these cases, the assets are usually valued by requesting a benchmark valuation from a third party.

Reclassification of financial assets

The Groups does not reclassify financial assets according to the results of the SPPI Test, unlike the business model evaluation where, under certain exceptional or infrequent circumstances, this can be subject to change.

Impairment of financial assets

A provision is recognized for expected credit losses for debt securities not classified at fair value through P&L. Expected losses are based on the difference between the contractual cash flows according to the contract and all the cash flows the entity expects to receive, discounted at the effective interest rate.

Expected credit losses are recognized in three phases, depending on the increase in third-party credit risk from the initial recognition:

• Stage 1 Normal risk: if no significant increase in credit risk has occurred, remaining expected credit loss is calculated based on the default events that could take place in the 12 months following the closing date (12 month expected loss).
• Stage 2 Problematic risk: if a significant increase in credit risk has occurred, an expected credit loss provision is required, calculated based on the remaining life of the exposure, independent of when default occurs (lifetime expected loss).
• Stage 3 Impairment risk: if an instrument experiences objective evidence of default, expected credit losses over the life of the instrument are recorded with 100% probability of default.

When debt securities are considered to be low credit risk, expected credit losses are measured on a 12 month basis.

In general, a financial asset is considered to be in default (impaired credit) when there is a delay in contractual payments of more than 90 days. In certain cases, an instrument is also considered to be in default when the internal or external information indicates that it is unlikely that the contractual amounts will be received.

A financial asset is classified as bad when there is no reasonable expectation of recovering contractual cash flows.

Expected credit loss is calculated based on scenarios to measure expected cash deficit, discounting an adequate effected interest rate. The cash deficit corresponds to the difference between contractually-owed cash flows and cash flows the entity expects to receive.

Expected credit losses for the "Financial assets measured at fair value through OCI" do not reduce their accounting value on the balance sheet, which maintains the fair value. In this case, an amount equal to the provision that would be produced if the assets were valued at amortized costs is recognized in OCI, with the corresponding recognition in P&L. The accumulated income recognized in OCI is transferred to P&L when the asset is derecognized.

Different indicators for future performance, like GDP growth, Central Bank interest rates, inflation, etc., are considered in the calculation models for expected credit loss.

Expected loss calculation

The data used for the expected loss calculation for financial assets are:

• The amount of exposure at the date of reporting, along with the stage at which it is recognized.

• Probability of default and a recovery rate for each exposure, based on a methodology that is proportional and adequate to the materiality of the expected loss.

As a general rule, the expected loss is obtained based on a calculation model from an external provider who is working with the company to this end, and which incorporates all the established requirements for the standard. The calculation model uses as input data, among others, the instrument identifiers (ISIN, SEDOL, CUSIP, FIGI, etc.), the date of acquisition or creation of the instrument, reporting date, and instrument nominal amount.

The calculation methodology is as follows:

• * Expected loss in the next twelve months: it is assumed that the possible defaults are identically distributed throughout the year. Exposure at reporting date, calculated as the present value of future cash flows from the instrument at the mid-point of the first year and discounted at said date, is multiplied by the probability of default at twelve months and the estimate of the percentage of asset's expected loss at twelve months, to obtain the expected credit loss in the next 12 months.
• * Expected credit loss during the life of the asset: For each year, the present value of cash flows is obtained, calculated at the mid-point of the year, discounting until the reporting date. That discounted exposure is multiplied by the probability of default and the corresponding estimate of the percent of expected loss of the asset for each year until maturity.

Reversal of uncollectibility and impairment

If, in subsequent periods, the impairment loss amount reduces and the reduction is objectively related to an event subsequent to recognition of the impairment (for example an improvement in the issuer's credit rating), the previously recognized impairment loss is subject to reversal through an adjustment in the provision line that was used, with the amount limited to the previously recognized impairment loss. The amount of the reversal is recognized in the result for the year.

5.6. 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 impairment loss 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.

5.7. INVENTORIES

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

5.8. RECEIVABLES

These assets are generally valued using the amortized cost, calculated according to the effective interest rate method, deducting, where 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 as the implicit financial interest the current market interest rate for sovereign debt securities with the same or similar maturity as the receivables, without prejudice to taking into account the relevant risk premium.

When there is objective evidence that an impairment loss was incurred, 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.

Contingent assets are not subject to recognition in the financial statements. However, when income realization is practically certain, the corresponding asset is not considered contingent and therefore is recognized.

5.9. 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.

5.10. ACCRUAL ADJUSTMENTS

This asset heading includes, among others, commissions and other acquisition expenses corresponding to the unwritten contracts that can be allocated to the period between the closing 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, this liability heading includes commissions and other acquisition expenses for ceded reinsurance that are allocated to the year or years following in accordance with the coverage period of the ceded policies.

5.11. NON-CURRENT ASSETS HELD FOR SALE AND ASSOCIATED LIABILITIES

These are generally valued, where applicable, at the lower amount between their book value and fair value, deducting sales costs. Sales costs are understood as marginal costs directly attributable to the disposal, excluding, where 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 in the consolidated income statement. Likewise, if a recovery of the value occurs this is recognized in the consolidated income statement up to an amount equal to the impairment loss previously recognized.

5.12. TREASURY STOCK

Treasury stock is measured at acquisition cost and recognized in equity. Expenses incurred on 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.

5.13. FINANCIAL LIABILITIES AND SUBORDINATED LIABILITIES

Those financial liabilities that imply a contractual obligation to give cash or other financial assets from another entity, or to exchange financial assets or liabilities with another entity in potentially unfavorable conditions, or a contract that is or could be liquidated using shareholders' equity are included as financial liabilities.

Subordinated debt and bank debt

On their initial recognition, these are recorded at fair value, which is the net amount received, from which the costs of the operation directly attributable to the issue of the financial liability, as well as commissions, formalization expenses, taxes, fees, etc. are deducted. They are subsequently measured at amortized cost, which is calculated using the effective interest rate of the financial liability.

Other financial liabilities

These mainly include financial liabilities coming from leasing contracts, valued at amortized cost, non-controlling interests corresponding to consolidated mutual funds and liabilities from investment contracts, which at initial recognition are valued at the gross amount received, allocating the expenses of the operation directly to P&L. Subsequently, they are measured at fair value through P&L.

5.14. INSURANCE OPERATIONS

Insurance revenue includes the amounts related to changes in the liability for remaining coverage and the allocation of the part of the premium related to the recovery of insurance acquisition cash flows.

On the other hand, insurance service expenses include claims and other incurred expenses for insurance services, the amortization of insurance acquisition cash flows, changes related to past services (i.e. changes in cash flows related to the liability for incurred claims); and losses on groups of contracts and reversals of these losses.

The loss component corresponds to losses attributable to each group of contracts, both those with losses at initial recognition as well as those that become onerous at a later date.

Ordinary insurance revenue and insurance service expenses exclude any investment component, understanding as such the amounts that an insurance contract requires a policyholder be reimbursed if no insured event occurs.

Ceded reinsurance revenue includes amounts recovered from reinsurers. Ceded reinsurance expenses comprise the amounts released from the liability for remaining coverage ceded to reinsurers.

A) CLASSIFICATION

A.1) Level of Aggregation

The portfolios of insurance and reinsurance contracts identified comprise contracts subject to similar risks and managed together, and are classified as follows:

• a. Any contracts that are onerous at initial recognition;
• b. Any other contracts.

Additionally, insurance and reinsurance contracts are divided by year of issue, and shall not include contracts issued more than one year apart in the same group.

However, MAPFRE has used the optional exception to not apply the grouping requirement for annual cohorts in certain insurance products sold in Spain. These include those products that, for solvency purposes, apply the matching adjustment, as well as the groups of insurance contracts with direct participation features measured using the Variable Fee Approach (VFA).

A.2) Components of insurance contracts valued under other standards: Separation of components

The Group analyzes its insurance and reinsurance contracts to establish whether or not they contain any components that must be recorded under other IFRS rules. After separating these components, the Group applies EU-IFRS 17 to the rest of the contract.

There are no relevant separable services or investment components for the Group.

Goods and services are not separated from the insurance contract where:

• a. The cash flows and risks associated with the good or service are highly interrelated with the cash flows and risks associated with the insurance component in the contract; and
• b. They provide a significant integration service for the good or service other than insurance services with the insurance component.

B) RECOGNITION AND VALUATION

Groups of issued insurance and reinsurance contract groups are recognized from the earliest of the following:

• a. The beginning of the coverage period of the group of contracts;
• b. The date when the first payment from a policyholder in the group becomes due; and
• c. For a group of onerous contracts, when the group becomes onerous.

For groups of ceded reinsurance contracts that provide proportional coverage, these are recognized at the beginning of the coverage period of the group of ceded reinsurance contracts or at initial recognition of any underlying contract (whichever occurs last); and in all other cases they are recognized at the beginning of the coverage period of the group of ceded reinsurance contracts.

B.1) Groups of onerous contracts at initial recognition.

Some contracts are issued before the coverage period begins and the first invoice is due. As such, it is determined before the beginning of the coverage period and the date the first invoice is due whether any of these contracts issued are onerous, i.e. if the fulfillment cash flows assigned to the contract represent a total net outflow. To determine this, the facts and circumstances are considered, taking into account:

• Information regarding the price.
• Results of similar contracts already recognized.
• External factors, for example, a change in market experience or regulations.

B.2) Contract limits

When valuing groups of insurance and reinsurance contracts, all future cash flows within the limits of each contract belonging to the group are included.

The substantive obligation to provide services ends when the Company:

a. has the practical ability to reassess the risks of the insurance policy policyholder and, as a result, can set a price or level of profits that fully reflects these risks; or

b. has the practical ability to reassess the risks of the portfolio of insurance contracts that contains the contract and, as a result, can set a price or level of profits that fully reflects the risk of that portfolio. When setting new prices, risks related to periods subsequent to the date of reassessment are not taking into consideration.

B.3) Insurance contract valuation methods

I. Building Block Approach (BBA)

The amount recognized on the balance sheet for each insurance contract group valued using this method (BBA) comprises:

• The liability for remaining coverage (LFRC) includes fulfillment cash flows for allocated future service, the non-financial risk adjustment and the contractual service margin (CSM).
• The liability for incurred claims (LFIC) comprises those fulfillment cash flows coming from claims incurred but not paid. These flows are adjusted for the time value of money and the financial risk effect. The non-financial risk adjustment is also included in this liability for incurred claims. Claims incurred but not reported will also be included.

Under this approach, insurance contract groups are valued at their initial recognition as the total of:

• a. Fulfillment cash flows, which include:
  • (i) Expected future cash flows that will arise over the length of the contract;
  • (ii) An adjustment to reflect the time value of money and the financial risks related to future cash flows where the financial risks have not been included in the future cash flow estimate; and
  • (iii) A risk adjustment for non-financial risk.
• b. Contractual Service Margin (CSM).

The CSM is a component of the liability, or asset, for the group of insurance or reinsurance contracts that represents the unearned profit that will be recognized as services are provided in the future. The accrued part of the CSM is recognized in P&L as Insurance revenue in each period to reflect the services provided.

At the end of each period, the CSM is the amount recorded at the beginning of the year, adjusted for:

• The effect of new contracts added;

• The interests accredited to the CSM, calculated according to the discount rates determined at the date of initial recognition;

• The changes in fulfillment cash flows where the change is related to future service, unless the change comes from a change in fulfillment cash flows assigned to a group of underlying insurance contracts that does not affect the CSM.

• The impact of currency differences on the CSM; and

• The amount recognized in the result for the period due to the services provided in the period.

The criteria for releasing CSM depends on the product type, and based primarily on the amount insured for Burial and Life Protection products, and on insured services for the Annuity business or Life Savings contracts, considering that the method reflects the transfer of insurance services provided in each period.

II. Variable Fee Approach (VFA)

The VFA is required to be applied for those contracts that meet the criteria of contracts with direct participation features.

MAPFRE Group criteria to classify an insurance contract as having direct participation is as follows:

• The contract clauses specify that the policyholder participates in a clearly identified pool of underlying items, i.e. when the contractual terms and conditions (including both explicit and implicit contract terms) specify a clearly identifiable pool of underlying items.

• The company expects to pay the policyholder an amount equal to a substantial share of the fair value returns on the underlying items. Participation percentages of greater than 80 percent on the underlying assets at fair value are established as transferring a "substantial share" of the return to be paid to the policyholder.

• The company expects, in the initial recognition, that a substantial share of any change in the amounts to be paid to the policyholder varies with the change in fair value of the underlying items.

As a result, MAPFRE Group uses the VFA to measure Unit-Linked, products, "with profit" products sold in Malta and products with traditional profit-sharing sold in Spain. All other products with profit sharing in other countries other than those stated above are measured using the BBA, as they do not meet some of the criteria established to be considered direct participation.

36 Consolidated Annual Accounts 2023

Under this valuation approach, changes in obligations to pay the policyholder an amount equal to the fair value of the underlying items are not related to future service and do not impact the CSM. However, changes in Group participation in the fair value of the underlying items is related to future service and therefore impact the CSM.

Contractual Service Margin (CSM)

As mentioned, the CSM is a significant component of the liability of those contracts valued using the BBA and VFA, and it will represent the expected earnings from those contracts which are released in the P&L as insurance services are provided.

III. Premium Allocation Approach (PAA)

The Premium Allocation Approach is used to measure the liability for remaining coverage (LFRC) for those contract groups in which the period of coverage of each contract is one year or less, or in those contracts with a duration greater than one year, in which the company reasonably expects that this simplification does not vary materially from the measurement the BBA. The liability for incurred claims (LFIC) is calculated including all those future fulfillment cash flows related to claims that are incurred but not yet paid, using the discount rates and the adjustment for non-financial risk.

In the initial recognition, the asset/liability for remaining coverage consists of:

• Premiums received in the initial recognition;

• Minus the insurance acquisition cash flows at that date.

• Plus or minus the amount arising from derecognizing in the accounts at that date the asset or liability recognized for those insurance acquisition cash flows or the group of contracts in line with the standard's provisions.

The Group has opted to not recognize insurance acquisition cash flows as expenses when they occur, as these have been included in the valuation of the liability for remaining coverage.

Given the composition of the Group portfolio, the majority of the insurance contracts (70 percent of premiums, approximately) are valued using this method.

Initially, as well as over the contract coverage period, an evaluation will be carried out to determine if there are facts and circumstances indicating that said contracts generate losses. A contract group is considered to be loss-making when the fulfillment cash flows exceed the book value. In these cases, a loss is recognized in the result for the year and the liability for remaining coverage is increased.

The Group primarily measures insurance contracts as follows:

Insurance contracts	Approach
Non-Life and Life lines with duration of less than one year (*)	PAA
Burial line	BBA
Life contracts with duration greater than one year	BBA
Contracts with a direct participation component (i.e. Unit Linked, some Life products with profit sharing)	VFA

(*) Contracts with duration greater than one year but with no significant valuation difference expected from the BBA will also be measured using the PAA

B.4) Valuation methods for ceded and retroceded reinsurance contracts

The PAA has generally been used to assess the value of ceded and retroceded reinsurance contract group.

C) NON-FINANCIAL RISK ADJUSTMENT

Non-financial risk adjustment valuation reflects the compensation that MAPFRE needs to manage uncertainty regarding the amount and moment of future cash outflows, which arise from non-financial risks from fulfilling insurance contract obligations. Underwriting risks as well as other non-financial risks like portfolio expenses and lapses are taken into consideration when determining this.

The non-financial risk adjustment has been estimated using a confidence-interval-based approach, using Value at Risk (VaR) metrics for the probability distribution of the current value of future cash flows, in line with Solvency II capital requirements, and calibrating the target percentile confidence interval based on the following business type:

• Non-Life business: 62.5-67.5 percentile.
• Life business: 82.5-87.5 percentile.
• Reinsurance business: 85-90 percentile.

The non-financial risk adjustment includes geographic and business-type diversification benefits within each individual entity, but excludes the diversification that could arise between the various entities.

D) DISCOUNT RATES

Discount rates are determined using the risk-free curve for each required currency, following EIOPA's methodology for their derivation, and adding an additional spread obtained as the differential between the market yield of the assets included in the related asset portfolio over the risk free curve. The effects of credit risk or credit loss not affecting the insurance contracts are eliminated from this spread. To do this, EIOPA's Solvency II Fundamental Spread is applied. The risk free curve is set by currency, while the spread is determined by company and business, using an approach that reflects the characteristics of the related assets, taking into account asset and liability flow matching.

For the euro and the dollar, the risk free curve is based on the swap rate and includes a 20- and 30 year last liquid point (LLP), respectively, and an ultimate forward rate (UFR). At December 31 the last two years, the UFR was 3.45%.

For the Mexican peso, the risk free curve is based on the swap rate and includes a 10-year last liquid point (LLP), and an ultimate forward rate (UFR). At December 31, 2023 and 2022, the UFR was 4.45%.

For the most relevant remaining currencies, the curves are derived from sovereign and other debt issues in the currency in question. The zero curve yield curves obtained from these issues is done through the bootstrapping method, which is a model that builds each point in time of the curve from the quoted prices of the bonds themselves, using resampling methodologies and techniques to interpolate the different periods of the curve.

All risk free curves have an implicit credit risk adjustment, in order to eliminate the credit risk implicit in the Swap and zero yield curve quotes used in the inputs. This implicit adjustment in the base risk free curves used, depending on the references used for each currency, is between 0bp and 35bp.

In Note 6.12 "Insurance and reinsurance operations" herein, additional information regarding yield curves is provided.

E) INSURANCE FINANCE INCOME AND EXPENSES

Insurance finance income and expenses comprise changes in the book value of insurance contract groups that arise from the effect of the time value of money and changes thereof; and from the effect of financial risk and changes thereof, excluding any change for groups of contracts with direct participation components that would adjust the CSM but do not in the circumstances included in the expenses for insurance services.

In the recognition of finance income and expenses from insurance contracts that arise as a result of a change in the discount rate, (both from the effect of the time value of money and changes thereof, as well as the effect of financial risk and changes thereof), MAPFRE Group has adopted the following criteria:

• For product portfolios valued using the simplified method (PAA), including reinsurance portfolios, the accounting policy of not disaggregating between OCI and P&L is used. Similarly, this option is used for some products valued using the VFA, like Unit-Linked.

• For product portfolios valued using the general method (BBA), the accounting policy of disaggregating between OCI and the rsult for the period has been chosen. Similarly, disaggregation has also been chosen for some contracts valued using the VFA.

On the other hand, the Group has chosen to disaggregate changes in the risk adjustment between financial and non-financial risk, so that the change in value from the risk adjustment resulting from the effect of the time value of money and changes thereof is recorded as financial result from insurance contracts.

F) DERECOGNITION AND MODIFICATION OF CONTRACTS

An insurance contract is derecognized when it is extinguished (when the obligation specified in the insurance contract expires or is discharged or cancelled), or when the contractual terms are modified and therefore the accounting record for the contract changes, in which case a new insurance contract is recognized.

If a contract modification is not significant, the changes in cash flows caused by the modification are treated as changes in estimates of fulfillment cash flows.

When the company derecognizes an insurance contract within a group of contracts, the following requirements are applied:

• a. Fulfillment cash flows allocated to the group of contracts are adjusted to eliminate the present value of future cash flows and risk adjustment for non-financial risk relating to the rights and obligations that have been derecognized;
• b. The contractual service margin of the group is adjusted for the change in fulfillment cash flows; and
• c. The number of coverage units is adjusted.

When an insurance contract is derecognized because it is transferred to a third party or because a new contract is recognized, the contractual service margin of the group is adjusted.

For contracts transferred to a third party, the adjustment is for the difference between the change in the book value of the group and the premium charged by the third party.

For contracts derecognized as a result of a modification, the adjustment is for the premium that would have been applied had the company entered into a contract with equivalent terms to those of the new contract at the date of the modification, less any additional premium resulting from the modification.

5.15. 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 reimbursed, the reimbursement is recognized as a separate asset.

5.16. NON-FINANCIAL 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 as the implicit financial interest the interest in force in the market for public debt securities with the same or similar term as the maturity of the debts, without prejudice to taking into account the relevant risk premium.

5.17. GENERAL CRITERION FOR REVENUE AND EXPENSES

Recognition of ordinary 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 the company is entitled to for the transfer of the goods or services.

5.18. 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 recorded according to the services provided for 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.

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 besides those described 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

On February 9, 2022, the Board of Directors of MAPFRE S.A. approved an extraordinary, unvested incentive plan for the 2022-2026 period, comprising three overlapping cycles with a three-year target measurement period per cycle. This new plan is aimed at specific members of Management and key professionals of the Company and Group companies, including executive directors of the Company, and is dependent on the fulfillment of the targets established within the MAPFRE Group strategic plan as well as on the manager remaining in the employment of the Company or Group. Said incentive will be paid partially in cash and partially in MAPFRE S.A. shares, and payment is subject to malus and clawback clauses, as well as a certain period of required share ownership.

In 2019 a medium-term incentive plan was approved for certain members of the MAPFRE executive team. The plan is extraordinary, non-cumulative and multiyear, 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 targets, 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 and clawback clauses.

At the close of each year, the fulfillment of targets are evaluated and the amount accrued is recorded in the consolidated income statement under a liability heading for the part of the remuneration paid in cash and under an equity heading for the part corresponding to shares. The valuation of the part of the incentive paid in MAPFRE S.A. shares takes into account the fair value of 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.

Stock-option plans

In 2021, MAPFRE launched a Stock-option plan for employees in Spain, with the aim of increasing their tie to the company's future profits and strategy. The plan has implied voluntarily dedicating an annual amount of remuneration toward acquiring MAPFRE S.A. shares, which were delivered on a monthly basis over the course of 2022. 4,704 employees signed up for this plan. Additionally, the shares held by the participants until March 31, 2021 grant the right to receive 1,968,119 additional shares, for the amount of 3.7 million euros, for free.

In 2022, a new Stock-option plan was launched for employees in Spain for MAPFRE S.A. shares, which was carried out in 2023. 1,581 employees signed up for this plan. This plan does not include giving additional shares for free.

Similarly, in 2023, MAPFRE a stock-option plan was launched for employees in Spain for MAPFRE S.A. shares to be carried out in 2024. 1,805 employees signed up for this plan. This plan does not include giving additional shares for free.

The transactions resulting from each Plan are measured at the fair value of the equity instruments ceded at the date of the grant agreement.

Every month, the Company, during the share delivery period, derecognizes the treasury stock delivered, recording the difference between the value of the actions handed over in voluntary reserves.

When necessary, during the period of shareholding, an increase in net equity is recorded for the additional shares to be handed over.

When the period of shareholding ends, the difference in the value of the treasury stock handed over for free is recorded in voluntary reserves.

5.19. 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 insurance contract liabilities, 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. Portfolio at fair value through P&L

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 gains or losses.

b. Portfolio at fair value through OCI

Recorded directly in the company's other comprehensive income until it is derecognized on the balance sheet or an impairment is recognized, in which case it is recorded in the consolidated income statement, with the exception of equity instruments included in this portfolio, which are recorded in a reserves account.

c. Portfolio at amortized cost

Recognized when the financial instrument is disposed of and when impairment occurs.

In all cases, the interest of financial instruments is recorded on the consolidated income statement applying the effective interest rate method.

5.20. RECLASSIFICATION OF EXPENSES BY PURPOSE AND ALLOCATION TO ACTIVITY SEGMENTS

For management purposes, expenses have been reclassified from by nature to by purpose, 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 use of these expenses.

The established destinations are as follows:

• Claims-related expenses
• Expenses allocated to investments
• 41 Consolidated Annual Accounts 2023
• Other technical expenses
• Other non-technical expenses
• Acquisition expenses
• Administration expenses
• Operating expenses from other activities

5.21. 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.

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 "Currency 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.

5.22. 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 value of an asset or liability and its valuation for tax purposes.

Temporary differences may be "Temporary tax 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 recoverable, the recording 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.

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.

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.
• They correspond to temporary differences relating to investments in controlled, associated or joint arrangement companies to the extent that the temporary differences can revert in the foreseeable future and positive future taxable benefits are expected to be generated to offset the differences.

c. Compensation

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.

6. BREAKDOWN OF FINANCIAL STATEMENTS 6.1. INTANGIBLE ASSETS

The following tables show the movements under this heading in the last two years:

2023

Item	Opening balance	Adjustments to the opening balance	Changes to the scope	Additions or provisions	Disposals, cancellations or reductions	Closing balance
COST
GOODWILL	1,639.1	(24.2)	—	1.5	—	1,616.4
OTHER INTANGIBLE FIXED ASSETS
Portfolio acquisition expenses	921.9	27.9	—	—	—	949.8
Software	1,606.7	7.0	3.7	175.8	(62.7)	1,730.5
Other	401.9	3.2	(0.4)	79.0	(76.5)	407.2
TOTAL COST	4,569.6	13.9	3.3	256.3	(139.2)	4,703.9
CUMULATIVE AMORTIZATION
OTHER INTANGIBLE FIXED ASSETS
Portfolio acquisition expenses	(468.8)	(14.4)	—	(44.6)	—	(527.8)
Software	(1,052.6)	(4.0)	0.2	(142.6)	44.0	(1,155.0)
Other	(61.9)	(2.0)	—	(13.5)	2.3	(75.1)
TOTAL CUMULATIVE AMORTIZATION	(1,583.3)	(20.4)	0.2	(200.7)	46.3	(1,757.9)
IMPAIRMENT
GOODWILL	(193.5)	5.8	—	(75.0)	—	(262.7)
OTHER INTANGIBLE ASSETS
Portfolio acquisition expenses	(0.6)	—	—	—	—	(0.6)
Software	(2.8)	0.1	—	—	—	(2.7)
Other	—	—	—	—	—	—
TOTAL IMPAIRMENT	(196.9)	5.9	—	(75.0)	—	(266.0)
TOTAL GOODWILL	1,445.6	(18.4)	—	(73.5)	—	1,353.7
TOTAL OTHER INTANGIBLE ASSETS	1,343.9	17.8	3.5	54.1	(92.9)	1,326.3
TOTAL INTANGIBLE ASSETS	2,789.5	(0.6)	3.5	(19.4)	(92.9)	2,680.0

Figures in millions of euros

Additions in the year mainly include advances from intangible fixed assets and launch of businessrelated operating systems.

Item	Opening balance	Adjustments to the opening balance	Changes to the scope	Additions or provisions	Disposals, cancellations or reductions	Closing balance
COST
GOODWILL	1,666.6	64.0	(91.5)	—	—	1,639.1
OTHER INTANGIBLE FIXED ASSETS
Portfolio acquisition expenses	943.3	73.0	(82.5)	—	(11.9)	921.9
Software	1,386.6	65.0	(9.4)	176.7	(12.2)	1,606.7
Other	388.5	(18.0)	(0.1)	75.7	(44.2)	401.9
TOTAL COST	4,385.0	184.0	(183.5)	252.4	(68.3)	4,569.5
CUMULATIVE AMORTIZATION
OTHER INTANGIBLE FIXED ASSETS
Portfolio acquisition expenses	(452.3)	(27.7)	45.7	(44.6)	10.1	(468.8)
Software	(896.3)	(39.2)	9.2	(133.1)	6.8	(1,052.6)
Other	(55.4)	21.8	0.1	(28.8)	0.4	(61.9)
TOTAL CUMULATIVE AMORTIZATION	(1,404.0)	(45.1)	55.0	(206.5)	17.3	(1,583.3)
IMPAIRMENT
GOODWILL	(194.2)	(8.8)	9.5	—	—	(193.5)
OTHER INTANGIBLE ASSETS
Portfolio acquisition expenses	(10.5)	0.1	9.8	—	—	(0.6)
Software	(2.6)	(0.2)	—	—	—	(2.8)
Other	—	—	—	—	—
TOTAL IMPAIRMENT	(207.3)	(8.9)	19.3	—	—	(196.9)
TOTAL GOODWILL	1,472.4	55.2	(82.0)	—	—	1,445.6
TOTAL OTHER INTANGIBLE ASSETS	1,301.3	74.8	(27.2)	45.9	(51.0)	1,343.9
TOTAL INTANGIBLE ASSETS	2,773.7	130.0	(109.2)	45.9	(51.0)	2,789.5

Figures in millions of euros

The amounts shown in Changes to the scope in 2022 primarily come from the sale of shareholding in CAJA CASTILLA LA MANCHA VIDA Y PENSIONES, S.A.

Additions in the year mainly include advances from intangible fixed assets and launch of businessrelated operating systems.

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:

Item	Book value
	2023	2022
Goodwill on consolidation	1,324.2	1,416.1
Goodwill on merger	29.5	29.5
Other intangible assets	—	—

Figures in millions of euros

44 Consolidated Annual Accounts 2023

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 years.

Goodwill

		Gross amount at source		Balance	2022		Balance		2023
Cash-generating unit	Business and Geographic Area	Millions in original currency	Currency	12.31.2021	Entries/ (write offs)	Net impairme nt for the period	12.31.2022	Entries/ (write offs)	Net impairme nt for the period	12.31.2023
Goodwill on consolidation
MAPFRE VIDA	Life insurance (Spain)	258.4	EUR	212.6	—	—	212.6	—	—	212.6
GLOBAL RISKS	Insurance for Companies	40.8	EUR	40.2	—	—	40.2	—	—	40.2
GRUPO CORPORATIVO, L.M.L.	Non-Life Insurance (Mexico)	407.9	MXN	17.5	2.1	—	19.6	2.2	—	21.8
MAPFRE WARRANTY	Extended Warranty	11.4	EUR	11.1	—	—	11.1	—	—	11.1
BB MAPFRE PARTICIPAÇOES	Insurance (Brazil)	350.3	BRL	55.3	6.8	—	62.1	3.3	—	65.4
BANKINTER VIDA	Life insurance (Spain)	160.5	EUR	160.5	—	—	160.5	—	—	160.5
CCM VIDA Y PENSIONES	Life and Pensions insurance (Spain)	81.3	EUR	81.3	(81.3)	—	—	—	—	—
MAPFRE USA	Non-Life Insurance (USA)	882.4	USD	641.7	42.1	—	683.8	(21.7)	(75.0)	587.1
MAPFRE AMERICA CENTRAL	Insurance (Central America)	9.0	PAB	7.9	0.6	—	8.5	(0.3)	—	8.2
CENTURY AUTOMOTIVE	Insurance and reinsurance (USA)	24.9	USD	21.8	1.5	—	23.3	—	—	23.3
BANKINTER SEGUROS GENERALES	Non-Life Insurance (Spain)	12.5	EUR	12.5	—	—	12.5	—	—	12.5
FUNESPAÑA	Funeral services (Spain)	17.9	EUR	17.9	—	—	17.9	—	—	17.9
VERTI VERSICHERUNG AG	Non-Life insurance (Germany)	125.5	EUR	125.5	—	—	125.5	—	—	125.5
Other	—			37.1	1.4	—	38.5	(0.4)	—	38.1
TOTAL GOODWILL ON CONSOLIDATION				1,442.9	(26.8)	—	1,416.1	(16.9)	(75.0)	1,324.2
Goodwill on merger
BANKINTER VIDA (branch in Portugal)	Life and Pensions insurance (Portugal)	5.3	EUR	5.3	—	—	5.3	—	—	5.3
GRUPO FUNESPAÑA	Funeral Services (Spain)	37.0	EUR	24.2	—	—	24.2	—	—	24.2
TOTAL GOODWILL ON MERGER				29.5	—	—	29.5	—	—	29.5
TOTAL GOODWILL				1,472.4	(26.8)	—	1,445.6	(16.9)	(75.0)	1,353.7
Goodwill in associated and multi-group undertakings
SALVADOR CAETANO AUTO (SGPS), S.A.	Services (Portugal)	11.3	EUR	11.3	—	—	11.3	—	—	11.3
PUY DU FOU ESPAÑA, S.A.	Activities and theme parks (Spain)	4.6	EUR	4.6	—	—	4.6	—	—	4.6
SOLUNION SEGUROS DE CREDITO, S.A.	Insurance (Spain)	12.9	EUR	12.9	—	—	12.9	—	—	12.9
Other	—			1.5	—	—	1.5	—	—	1.5
TOTAL GOODWILL IN ASSOCIATED AND MULTI-GROUP UNDERTAKINGS (EQUITY-ACCOUNTED) (*)				30.3	—	—	30.3	—	—	30.3

Figures in millions of euros

(*) Goodwill related to acquisitions of associated and multigroup entities is included as the higher of the investment values recorded in accounting via the equity method

Portfolio acquisition expenses

		Gross amount at source		Initial		2022	Initial		2023	Initial
Cash-generating unit	Business and Geographic Area	Millions in original currency	Currency	12.31.2021	Entries/ (write offs)	Amortization and net impairment for the period	12.31.2022	Entries/ (write offs)	Amortization and net impairment for the period	12.31.2023
BANKINTER VIDA	Life and Pensions insurance (Spain and Portugal)	183.4	EUR	78.6	—	(7.5)	71.1	—	(7.4)	63.7
CCM VIDA Y PENSIONES	Life and Pensions insurance (Spain)	82.6	EUR	28.3	(28.3)	—	—	—	—	—
BB MAPFRE PARTICIPAÇOES	Life Insurance (Brazil)	3,461.4	BRL	311.5	39.8	(30.2)	321.1	16.9	(31.7)	306.3
VERTI VERSICHERUNG AG Non-Life insurance	(Germany)	23.5	EUR	6.7	—	(1.5)	5.2	—	(1.2)	4.0
MAPFRE SALUD ARS	Life Insurance (Dominican Republic)	3,740.1	DOP	49.7	4.4	(4.3)	49.8	(3.0)	(4.1)	42.7
Other	—	—		5.8	0.7	(1.1)	5.4	1.4	(2.0)	4.8
TOTAL PORTFOLIO ACQUISITION EXPENSES 480.6 16.6 (44.6) 452.6 15.3 (46.4)							421.5

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 cashgenerating unit to which they are allocated.

NON-LIFE BUSINESS

The following table shows the recoverable value of the main cash-generating units for the Non-Life business:

Cash-generating	Contrast value		Recoverable value
unit	2023	2022	2023	2022
BB MAPFRE PARTICIPAÇOES	235.1	196.5	1,605.8	1,242.6
MAPFRE USA	1,425.0	1,549.7	1,425.0	1,697.0
VERTI VERSICHERUNG AG	284.7	288.8	496.0	310.0

Figures in millions of euros

The calculation of the recoverable value of the Non-Life business 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 perpetual 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)
• 1. Perpetual growth rate (g): calculated according the long-term inflation projection issued by the International Monetary Fund (IMF)

The country risk rate usually corresponds to the effective yield of the 10-year Government bonds in local currency issued in the country in which the cash-generating unit operates, increased by the equity market risk premium 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 ranged between 2.0 percent and 10.4 percent in 2023, and between 2.6 percent and 12.8 percent in 2022.

External projections of international organizations and other benchmark entities in the field of company ratings are used as a complement for estimating the discount (ke) and perpetual growth (g) rates applied to the different cash-generating units analyzed.

The discount rates thus obtained, applied to the discounted cash flows used to calculate the recoverable value of the main cash-generating units, are as follows:

	After tax
Cash-generating unit	2023	2022
MAPFRE USA	9.0 %	8.6 %
BB MAPFRE PARTICIPAÇOES	13.6 %	17.2 %
VERTI VERSICHERUNG AG	5.6 %	7.4 %

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 perpetual 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, with the markets in which the main cash-generating units operate being:

Country	Long-term inflation forecast		Perpetual growth rate (g)
	2023	2022	2023	2022
United States	2.1 %	2.0 %	2.1 %	2.0 %
Brazil	3.0 %	3.0 %	3.5 %	3.5 %
Germany	2.0 %	2.0 %	2.0 %	2.0 %

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 cash flows of the last period of the estimates, with a perpetual growth rate calculated as described above.

The most relevant hypotheses used to determine cash flows from the main cash-generating units are as follows:

Non-Life Cash generating unit	Average insurance revenue growth		Average net result growth		Average capital requirement ratio
			2023 2022 2023 2022		2023	2022
MAPFRE USA	1.9 %				1.5 % 216.3 % 323.7 % 16.7 % 16.4 %
BB MAPFRE PARTICIPAÇOES					13.4 % 15.6 % 26.7 % 27.6 % 10.5 % 10.1 %
VERTI VERSICHERUNG AG	4.7 %				3.9 % 17.9 % 10.8 % 21.0 % 24.0 %

The ratios described above correspond to the average of the years comprising the time horizon of the projections (generally 5 years).

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 for 2023 of 8.3 percent (7.5 percent in 2022), 15.0 percent (11.2 percent in 2022) and 19.9% (13.6 percent in 2022), for the cash-generating units BB MAPFRE PARTICIPAÇOES, MAPFRE USA, and VERTI VERSICHERNG AG, respectively, 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 perpetual growth rate applied to each cashgenerating unit would imply reductions in the recoverable values of between 1.3 and 4.4 percent in 2023, and between 1.1 and 2.3 percent in 2022, 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.

LIFE BUSINESS

The following table shows the recoverable value of the main cash-generating units for the Life business:

Cash generating	Contrast value		Recoverable value
unit	2023	2022	2023	2022
MAPFRE VIDA	1,590.2	1,585.6	2,677.4	3,739.3
BANKINTER VIDA	244.4	233.6	511.9	678.9

Figures in millions of euros

To calculate the recoverable value of the cashgenerating units for the Life business, the present value of all future profits (Appraisal value, AP) coming from the in-force portfolio (Embedded value, EV), and new business (Goodwill, GW).

AP = EV+GW

The value of the in force portfolio (EV) is determined by the sum of the future profits of the in-force portfolio (Value in force, VIF) and the Net assets value (NAV).

EV = VIF + NAV

To determine the value of new business (GW), the value of new business (VNB) from the last available period is multiplied by a factor of new business generation expectation (Multipler)

This factor contemplates the discount rate and the expected growth of new business in the future.

GW = VNB x Multipler

The following shows a the main hypothesis for calculating the Appraisal value:

EMBEDDED VALUE	ASSUMPTIONS
Discount rate	EIOPA Risk free curve
Cost of capital
- Capital requirement	100% SCR Solvency II
- Annual cost	6% annual pre-tax

The new business generation expectation factor (Multipler) for the last two years was 7.

The studies carried out for the main cash-generating units in the Life business, show the following ranges of sensitivity to unfavorable variations in the key hypotheses:

• An 1 percentage point increase in interest rates applied in the Embedded Value calculation would lead to a 4.1 percent loss in recoverable value in the Group's Cash-Generating Units in the Life business (4.7 percent in 2022), and a similar reduction in rates would lead to a 4.2 percent increase (2.8 percent in 2022).
• Similarly, a 1 percentage point increase in interest rates applied in the Value of New Business (VNB) calculation would lead to a 0.5 percent loss in recoverable value in the Group's Cash-Generating Units in the Life business (2.4 percent in 2022), and a similar reduction in rates would lead to a 0.1 percent reduction (1.2 percent in 2022).

From the above analysis, it is clear that, in the face of unfavorable variations in key hypotheses, the recoverable value of the above mentioned cashgenerating units would continue to surpass their accounting value.

Additional information regarding the sensitivity to insurance risk for Life and Non-Life business is included in note 7 "Risk Management"

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:

2023

Item	Opening balance	Adjustments to the opening balance	Changes to the scope	Additions or provisions	Disposals, cancellations or reductions	Closing balance	Market value
COST
REAL ESTATE FOR OWN USE
Land and natural resources	26.6	(4.0)	—	1.9	0.8	25.3	81.1
Buildings and other structures	1,012.0	(20.0)	(53.3)	—	(68.2)	870.5	1,009.8
Lease right of use	462.4	0.8	—	58.9	(10.1)	512.0	266.6
OTHER PROPERTY, PLANT AND EQUIPMENT
Vehicles	35.2	(0.1)	—	6.9	(2.6)	39.4	11.0
Furniture and fittings	480.2	(3.2)	(43.4)	31.4	(26.8)	438.2	122.4
Other property, plant and equipment	246.6	1.4	—	21.9	(26.2)	243.7	68.1
Advances and fixed assets in progress	3.0	(0.7)	—	17.7	(18.3)	1.7	0.5
Lease right of use	11.7	—	—	3.7	(2.0)	13.4	3.7
TOTAL COST	2,277.7	(25.8)	(96.7)	142.4	(153.4)	2,144.2	1,563.2
CUMULATIVE DEPRECIATION
REAL ESTATE FOR OWN USE	(409.2)	8.5	15.4	(59.7)	23.8	(421.2)	—
OTHER FIXED ASSETS	(559.6)	1.0	34.7	(48.2)	41.4	(530.7)	—
TOTAL CUMULATIVE DEPRECIATION	(968.8)	9.5	50.1	(107.9)	65.2	(951.9)	—
IMPAIRMENT
REAL ESTATE FOR OWN USE
Land and natural resources	—	—	—	—	—	—	—
Buildings and other structures	(6.9)	—	—	(4.2)	2.7	(8.4)	—
OTHER FIXED ASSETS
Vehicles	—	—	—	—	—	—	—
Furniture and fittings	—	—	—	—	—	—	—
Other property, plant and equipment	—	—	—	—	—	—	—
TOTAL IMPAIRMENT	(6.9)	—	—	(4.2)	2.7	(8.4)	—
TOTAL REAL ESTATE FOR OWN USE	1,084.7	(14.7)	(37.9)	(3.1)	(51.0)	978.2	1,357.5
TOTAL OTHER FIXED ASSETS	217.2	(1.6)	(8.7)	33.4	(34.5)	205.7	205.7
TOTAL PROPERTY, PLANT & EQUIPMENT	1,301.9	(16.3)	(46.6)	30.3	(85.5)	1,183.9	1,563.2

Figures in millions of euros

The variations reflected in the column "Changes to the scope" are mainly from the the real estate belonging to MAPFRE VIDEO Y COMUNICACIÓN S.A., an asset management company, the sale of which took place in the current year. (Note 6.7)

2022

Item	Opening balance	Adjustments to the opening balance	Changes to the scope	Additions or provisions	Disposals, cancellations or reductions	Closing balance	Market value
COST
REAL ESTATE FOR OWN USE
Land and natural resources	28.7	(3.9)	—	4.6	(2.8)	26.6	105.8
Buildings and other structures	1,041.5	12.5	(0.7)	28.7	(70.0)	1,012.0	1,040.7
Lease right of use	398.0	0.8	—	87.1	(23.5)	462.4	276.1
OTHER PROPERTY, PLANT AND EQUIPMENT
Vehicles	33.1	2.6	(0.1)	3.3	(3.7)	35.2	9.8
Furniture and fittings	504.8	(12.3)	(0.1)	29.2	(41.4)	480.2	133.5
Other property, plant and equipment	202.5	26.6	(1.3)	18.3	0.5	246.6	68.6
Advances and fixed assets in progress	1.2	—	—	13.0	(11.2)	3.0	0.8
Lease right of use	11.2	(0.1)	(0.6)	4.0	(2.8)	11.7	4.5
TOTAL COST	2,221.1	26.2	(2.8)	188.2	(154.9)	2,277.7	1,639.8
CUMULATIVE DEPRECIATION
REAL ESTATE FOR OWN USE	(390.3)	7.1	0.2	(61.2)	35.0	(409.2)	—
OTHER FIXED ASSETS	(527.6)	(15.3)	0.7	(55.1)	37.7	(559.6)	—
TOTAL CUMULATIVE DEPRECIATION	(917.9)	(8.2)	0.9	(116.3)	72.7	(968.8)	—
IMPAIRMENT
REAL ESTATE FOR OWN USE
Land and natural resources	—	—	—	—	—	—	—
Buildings and other structures	(6.1)	0.1	—	(2.1)	1.2	(6.9)	—
OTHER FIXED ASSETS
Vehicles	—	—	—	—	—	—	—
Furniture and fittings	—	—	—	—	—	—	—
Other fixed assets	(2.0)	2.0	—	—	—	—	—
TOTAL IMPAIRMENT	(8.1)	2.1	—	(2.1)	1.2	(6.9)	—
TOTAL REAL ESTATE FOR OWN USE	1,071.8	16.6	(0.5)	57.1	(60.1)	1,084.7	1,422.6
TOTAL OTHER FIXED ASSETS	223.2	3.5	(1.4)	12.7	(20.9)	217.2	217.2
TOTAL PROPERTY, PLANT & EQUIPMENT	1,295.0	20.1	(1.9)	69.8	(81.0)	1,301.9	1,639.8

Real estate investment

The following tables show the movements under this heading in the last two years:

2023

Item	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	358.0	0.7	—	—	(29.6)	329.1	190.1
Buildings and other structures	1,109.7	12.7	14.5	73.0	(67.4)	1,142.5	1,097.3
OTHER REAL ESTATE INVESTMENTS
TOTAL COST	1,467.7	13.4	14.5	73.0	(97.0)	1,471.6	1,287.4
CUMULATIVE DEPRECIATION
INVESTMENT IN REAL ESTATE	(296.1)	0.2	0.2	(39.6)	25.5	(309.8)	—
OTHER REAL ESTATE INVESTMENTS
TOTAL CUMULATIVE DEPRECIATION	(296.1)	0.2	0.2	(39.6)	25.5	(309.8)	—
IMPAIRMENT
INVESTMENT IN REAL ESTATE
Land and natural resources	(142.7)	—	—	(4.9)	13.0	(134.6)	—
Buildings and other structures	(48.1)	0.1	—	(10.0)	3.8	(54.2)	—
TOTAL IMPAIRMENT	(190.8)	0.1	—	(14.9)	16.8	(188.8)	—
TOTAL REAL ESTATE INVESTMENT	980.8	13.7	14.7	18.5	(54.7)	973.0	1,287.4

Item	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	474.3	(2.0)	(101.4)	2.2	(15.1)	358.0	296.1
Buildings and other structures	1,254.7	7.8	(155.8)	85.4	(82.4)	1,109.7	1,193.8
OTHER REAL ESTATE INVESTMENTS
TOTAL COST	1,729.0	5.8	(257.2)	87.6	(97.5)	1,467.7	1,489.9
CUMULATIVE DEPRECIATION
INVESTMENT IN REAL ESTATE	(287.1)	(0.3)	3.9	(38.2)	25.6	(296.1)	—
OTHER REAL ESTATE INVESTMENTS
TOTAL CUMULATIVE DEPRECIATION	(287.1)	(0.3)	3.9	(38.2)	25.6	(296.1)	—
IMPAIRMENT
INVESTMENT IN REAL ESTATE
Land and natural resources	(129.2)	(0.1)	—	(17.8)	4.4	(142.7)	—
Buildings and other structures	(52.7)	(1.0)	2.4	(2.5)	5.7	(48.1)	—
TOTAL IMPAIRMENT	(181.9)	(1.1)	2.4	(20.3)	10.1	(190.8)	—
TOTAL REAL ESTATE INVESTMENT	1,260.0	4.4	(250.9)	29.1	(61.8)	980.8	1,489.9

Figures in millions of euros

The variations in the column "Changes to the scope" in 2022 mainly come from the change in consolidation method applied to the real estate investment fund Stable Income European Real Estate (SIEREF), as it became considered an associated undertaking in line with the definition indicated in Note 3.1.

Disposals in the year 2022 mainly correspond to lathe sale of buildings on the street General Perón, number 40, in Madrid, and the street Ibañez de Bilbao, number 28, in Bilbao.

Impairment losses for the year primarily correspond to land pending cataloging for urban development.

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 observable market variables (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.

Revenues and expenses derived from real estate investments in 2023 and 2022 are shown in the accompanying table:

Item	Insurance business not related to insurance service		Other Activities		Total
	2023	2022	2023	2022	2023	2022
Revenue from real estate investment
From rentals	37.4	51.0	8.0	3.9	45.4	54.9
Other	0.4	0.3	1.7	0.8	2.1	1.1
Gains on disposals	60.1	101.3	1.5	6.6	61.6	107.9
Total revenue from real estate investment	97.9	152.6	11.2	11.3	109.1	163.9
Expenses from real estate investment
Direct operating expenses	0.6	22.1	—	—	0.6	22.1
Other expenses	23.4	37.7	9.0	6.9	32.4	44.6
Losses on disposals	2.6	6.3	0.5	—	3.1	6.3
Total expenses from real estate investment	26.6	66.1	9.5	6.9	36.1	73.0

Figures in millions of euros

6.3. LEASING

The Group is the lessee of real estate for own use 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 financial statements at the close of 2023 and 2022 include the following amounts:

Item	Real estate for own use		Other fixed assets		Total
	2023	2022	2023	2022	2023	2022
ASSET
Right-of-use (net book value)	266.6	276.1	3.7	4.5	270.3	280.6
LIABILITY
Other financial liabilities (payment obligations)	305.0	312.1	4.2	5.0	309.2	317.1
INCOME STATEMENT
Depreciation	(46.4)	(44.2)	(2.3)	(2.4)	(48.7)	(46.6)
Interest expenses	(19.0)	(17.7)	(0.9)	(0.9)	(19.9)	(18.6)

Figures in millions of euros

Expenses from interests are recorded in the consolidated income statement, mainly in the heading "finance expenses not related to insurance service". The expenses for depreciation recorded are reclassified by purpose in line with the criteria indicated in note 5.20.

Expenses for short-term leases or leases with underlying assets with little value, not included in the above chart, stand at 33.4 million euros at the close of the 2023 financial year (25.8 million euros in 2022).

Total payments for the period reached 63.3 million euros at the close of 2023 (61.7 million euros in 2022).

The future minimum payments for non-cancellable leases at the close of 2023 and 2022, not considering the financial discount, are as follows:

Item		Real estate for own use		Other fixed assets	Total
	2023	2022	2023	2022	2023	2022
Less than one year	61.1	56.0	2.2	2.2	63.3	58.2
More than one year but less than five	221.5	164.3	4.9	3.9	226.4	168.2
More than five years	169.4	179.1	—	—	169.4	179.1
TOTAL	452.0	399.4	7.1	6.1	459.1	405.5

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 5.6 and 15.4 percent, respectively (6.3 and 13.7 percent in 2022).

The Group maintains the application deferral of EU-IFRS 16 for those short term lease contracts and/or those containing underlying assets with little value.

The Group is lessor of operating leases covering real estate. These lease terms have an average duration of 7.4 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:

Type of assets	Net book value
	2023	2022
Real estate investments	584.2	599.5

Figures in millions of euros

Payments from operating leases for the last two years is as follows:

Item	2023	2022
Less than one year	31.2	39.1
More than one year but less than five	92.7	102.7
More than five years	83.5	79.3
TOTAL	207.4	221.1

Figures in millions of euros

6.4. FINANCIAL INVESTMENTS

The composition of financial investments at the close of the last two years was as follows:

	Book value
Item	2023	2022
FINANCIAL INVESTMENTS AT FAIR VALUE THROUGH P&L
Equity Instruments and Mutual Funds	5,242.4	4,371.0
Debt Securities	9,784.2	8,658.3
Derivatives (no hedge)	2.4	4.2
Hybrid Instruments	16.1	15.3
Others	27.7	9.5
TOTAL PORTFOLIO AT FAIR VALUE THROUGH P&L	15,072.8	13,058.3
FINANCIAL INVESTMENTS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME
Equity Instruments and Mutual Funds	1,057.4	2,579.1
Debt Securities and other investments	20,624.5	17,724.1
TOTAL PORTFOLIO AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME	21,681.9	20,303.2
FINANCIAL INVESTMENTS AT AMORTIZED COST
Debt Securities and other investments	1,295.9	1,266.9
TOTAL PORTFOLIO AT AMORTIZED COST	1,295.9	1,266.9

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 (at fair value through P&L, at fair value through OCI, or at amortized cost) depending on the contractual characteristics of the instrument and the business model under which it will be managed.
• b. Based on the accounting nature of the portfolios, valuation is performed monthly, according to the hierarchy levels set out in Note 5.5
• 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.

54 Consolidated Annual Accounts 2023

The valuation policy is decided by the Investment Committees and/or Risk Committees, and is reviewed at least once a quarter.

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.

• Assets are transferred to Level 3 when there are no longer any observable market data.

A) PORTFOLIO AT FAIR VALUE THROUGH P&L

Investments allocated to the portfolio at fair value through P&L at December 31,2023 and 2022 are provided in the accompanying chart:

	Book value (fair value)
	Level 1. Quotation price		Level 2. Observable data		Level 3. Other measurements		Total
Item	2023	2022	2023	2022	2023	2022	2023	2022
DERIVATIVES (no hedge)
Forward foreign exchange contracts	—	—	2.0	2.7	—	—	2.0	2.7
TOTAL DERIVATIVES (no hedge)	—	1.7	2.4	2.5	—	—	2.4	4.2
OTHER INVESTMENTS	—	—	—	—	—	—	—	—
Equity Instruments	365.4	395.4	95.3	106.3	1.2	12.2	461.9	513.9
Debt securities	6,650.6	6,164.1	3,133.6	2,494.2	—	—	9,784.2	8,658.3
Mutual funds	4,298.3	3,415.1	109.0	37.3	373.2	404.7	4,780.5	3,857.1
Hybrids	—	—	16.1	15.3	—	—	16.1	15.3
Deposits	—	—	—	—	—	—	—	—
Other	6.8	9.5	4.0	—	16.9	—	27.7	9.5
TOTAL OTHER INVESTMENTS	11,321.1	9,984.1	3,358.0	2,653.1	391.3	416.9	15,070.4	13,054.1
TOTAL	11,321.1	9,985.8	3,360.4	2,655.6	391.3	416.9	15,072.8	13,058.3

Figures in millions of euros

Debt securities designated obligatorily at fair value through P&L as their cash flows do not correspond solely to payments of principal and interest amounted to 276.3 million euros (288.7 million euros in 2022)

There are certain debt securities that, as they meet the requirements to be classified at fair value through OCI, have been included in the portfolio at fair value through P&L in order to significantly reduce an accounting asymmetry that arose from the different recognition of these assets compared to the associated liabilities.

Credit risk for these instruments is not significant, in line with the Group's investment policy and corporate credit risk management policy, in which investment and concentration limits are established according to third-party credit quality, limiting investment to investment-grade debt, unless specifically authorized by the Group's governing bodies.

A reconciliation of the opening and closing balances for the year for the Level 3 financial assets in the portfolio at fair value though P&L is shown in the accompanying chart:

Item	Equity instruments and mutual funds		Other financial assets		Total
	2023	2022	2023	2022	2023	2022
Opening balance	416.9	333.3	–	–	416.9	333.3
Adjustments to the opening balance	(11.0)	2.1	13.1	–	2.1	2.1
Acquisitions	180.7	674.8	1.5	–	182.2	674.8
Disposals	(198.6)	(508.7)	–	–	(198.6)	(508.7)
Transfers from level 1 or 2	–	–	–	–	–	–
Transfers to level 1 or 2	–	–	–	–	–	–
Amortization	2.1	–	–	–	2.1	–
Gains and losses	(20.3)	(4.1)	–	–	(20.3)	(4.1)
Other	4.6	(80.5)	2.3	–	6.9	(80.5)
Closing balance	374.4	416.9	16.9	–	391.3	416.9

Figures in millions of euros

Financial assets classified as Level 3 primarily include stakes in risk capital mutual funds. The Net Asset Value valuation technique was used, which represents the value of assets and liabilities of the fund and is published by the entity managing the fund.

Due to the large amount of variables used in the valuation of these instruments, all possible significant observable inputs are not indicated nor the quantitative range of the inputs.

There have been no significant transfers to or from Level 3 in the last two years.

Gains and losses allocated to results in the the last two years are provided in the accompanying chart:

	GAINS (LOSSES) REPORTED IN P&L
Item	UNREALIZED		REALIZED
	2023	2022	2023	2022
DERIVATIVES (no hedge)
Forward foreign exchange contracts	(1.4)	(0.4)	(2.4)	1.6
TOTAL DERIVATIVES (no hedge)	(1.4)	(0.4)	(2.4)	1.6
OTHER INVESTMENTS
Equity Instruments	159.6	(64.1)	43.7	(14.5)
Debt securities	214.2	(221.3)	15.8	(97.6)
Mutual Funds	270.3	(42.4)	40.5	(1.2)
TOTAL OTHER INVESTMENTS	644.1	(327.8)	101.7	(113.2)
TOTAL	642.7	(328.2)	99.3	(111.6)

B) PORTFOLIO AT FAIR VALUE THROUGH OCI

Investments allocated to the portfolio at fair value through OCI at December 31, 2023 and 2022 are provided in the accompanying chart:

Book value (fair value)									Impairment
							Loss incurred		Reversal gains
2023	2022	2023	2022	2023	2022	2023	2022	2023	2022	2023	2022
993.4	703.0	49.8	2.3	0.3	0.4	1,043.5	705.7	–	–	0.2	–
		8,501.0	4,746.0	3.3				(11.2)	(9.1)	7.3	2.8
13.9	1,797.4	–	76.0	–	–	13.9	1,873.4	–	–	–	–
22.1	10.4	–	–	–	0.3	22.1	10.7	–	–	–	–
13,127.5	15,477.7	8,550.8	4,824.3	3.6	1.2	21,681.9	20,303.2	(11.2)	(9.1)	7.5	2.8
		Level 1. Quotation price 12,098.1 12,966.9		Level 2. Observable data		Level 3. Other measurements		Total 0.5 20,602.4 17,713.4

Figures in millions of euros

Equity instruments in the heading "Equity instruments" in the previous chart include 986.8 and 669.6 million euros at December 31, 2023 and 2022 respectively, in equity instruments traded in OECD country markets.

The valuation adjustments of portfolio investments amounted to (45.4) million and (998.7) million euros at December 31, 2023 and 2022 respectively, which have been recorded net of the tax effect on equity.

In 2023 and 2022, there were no relevant asset transfers from Level 1 to Level 2.

There were no variations in valuation techniques at Levels 2 and 3.

There have been no relevant transactions relating to financial assets in the portfolio at fair value through OCI classified at Level 3.

At the close of 2023 and 2022, 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.

Valuation adjustments of portfolio investments from previous years transferred to the consolidated income statement in 2023 and 2022 reached the amount of (9.3) and (91.2) million euros, respectively.

In 2023 and 2022, no provisions for significant impairments to investments in unquoted assets analyzed individually.

The heading for debt securities includes Swaps of set or predetermined flows, in which a Group company accepts the obligation to pay certain set or predetermined amounts that are normally denominated in euros.

At the close of 2023 and 2022, the Group had fixedincome assets as guarantees for financial swap operations with a market value of 271.7 and 297,1 million euros, respectively. At the close of these years, the assets received as guarantees amounted to 325.1 and 348.8 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 cancelled. The existence of these guarantees mitigated counterparty risk (CVA/DVA) on a large part of the Group's derivatives.

C) PORTFOLIO AT AMORTIZED COST

Investments allocated to the at amortized cost portfolio at December 31,2023 and 2022 are provided in the accompanying chart:

	Fair value									Impairment
Item		Book value (amortized cost)	price	Level 1. Quotation	data	Level 2. Observable	Level 3. Other measurement s		from interest	Revenue	incurred	Loss	gains	Reversal
	2023	2022	2023	2022	2023	2022	2023	2022	2023	2022	2023	2022	2023	2022
Debt securities	1,236. 8	1,092.9	1,136. 4	802.4	54.1	148.0	47.4	47.8	—	—	(1.3)	—	—	0.1
Other investments	59.1	174.0	50.2	133.3	—	37.0	6.9	3.4	—	—	—	—	—	—
TOTAL	1,295.	1,266.9	1,186.	935.7	54.1	185.0	54.3	51.2	—	—	(1.3)	—	—	0.1
	9		6

Figures in millions of euros

The maturity of debt securities are provided in Note 7 "Risk Management".

In 2023 and 2022, there have been no relevant transactions relating to financial assets in the portfolio at amortized cost classified as Level 3.

Investments recorded using the equity method.

The accompanying table provides a breakdown of the fair value of the main companies recorded using the equity method in the past two years:

Entity	Amount
	2023	2022
ENERGÍAS RENOVABLES IBERMAP S.L.(*)	201.4	145.5
MAP SL EUROPEAN INVEST S.A.R.L.(*)	155.8	170.7
MEAG EUROPE OFFICE SELECT EOS SCSP SICAV-RAIF(*)	132.0	41.6
SALVADOR CAETANO AUTO (SGPS), S.A.	124.9	115.3
MAPFRE INFRAESTRUCTURAS(*)	115.7	26.4
SOLUNION SEGUROS DE CREDITO S.A.	88.6	79.2
SIEREF MACQUARIE 2(*)	70.5	6.2
STABLE INCOME EUROPEAN REAL ESTATE FUND - GLL(*)	66.8	80.3
ALMA MUNDI INSURTECH FUND, FCRE	29.8	33.3
SWISSLIFE SPPICAV(*)	149.6	116.7
Other entities	90.7	71.6
TOTAL	1225.8	886.7

Figures in millions of euros

(*) Entities structured as investment funds.

FINANCIAL INVESTMENT IMPAIRMENT

Movements produced in 2023 in exposure by impairment stage of debt securities recorded in the heading "Financial assets at amortized cost" and "Financial assets at fair value through OCI" are provided in the accompanying table.

Item	Stage 1	Stage 2	Total
	2023	2023	2023
Balance at the beginning of the year	–	–	–
Adjustments to the Opening Balance	18,111.5	13.0	18,124.5
Transfers	(0.5)	0.5	–
Stage 2 from Stage 1	(14.0)	14.0	–
Stage 1 from stage 2	13.5	–	13.5
Additions from investment	11,246.8	–	11,246.8
Additions/removals due to variation in credit risk	50.7	–	50.7
Cancellations	(7,567.1)	(11.3)	(7,578.4)
Other variations	(155.0)	(1.3)	(156.3)
Balance at the end of the year	21,686.4	0.9	21,687.3

Figures in millions of euros

Movements produced in 2023 in provisions for impairment losses of "Financial assets at amortized cost" and "Financial assets at fair value through OCI" are provided in the accompanying table.

Movements produced in 2023 by impairment stage in provisions for impairment losses of "Financial assets at amortized cost" and "Financial assets at fair value through OCI" are provided in the accompanying tables:

Item	AMOUNT
Balance at the beginning of the year	–
Adjustments to the Opening Balance	(55.7)
Net allowances against the results of the year
Allowances against results Recovery of allowances with payment to	(12.6)
results	0.8
Applications	6.7
Exchange rate variations	–
Other variations	0.9
Balance at the end of the year	(59.9)

Figures in millions of euros

Item	Stage 1	Stage 2	Total
	2023	2023	2023
Balance at the beginning of the year	–	–	–
Adjustments to the Opening Balance	(52.2)	(3.5)	(55.7)
Transfers	0.6	(0.6)	–
Stage 2 from Stage 1	0.2	(0.2)	–
Stage 1 from stage 2	0.4	(0.4)	–
Additions from investment	(11.0)	–	(11.0)
Additions/removals due to variation in credit risk	(1.5)	–	(1.5)
Cancellations	3.6	3.8	7.4
Other variations	0.8	0.2	1.0
Balance at the end of the year	(59.7)	(0.1)	(59.8)

There were no financial instruments in Stage 3 at December 31, 2023.

6.5. RECEIVABLES

The breakdown of the "Receivables" heading, as well as impairment losses and gains on reversals recorded in the last two years are as follows:

					Net balance on		Impairment
	Gross amount			Impairment		balance sheet		Recorded losses		Reversal gains
Item	2023	2022	2023	2022	2023	2022	2023	2022	2023	2022
Tax receivables	514.9	447.5	—	—	514.9	447.5	—	—	—	—
Corporate and other receivables	785.1	765.6	(18.8)	(19.5)	766.3	746.1	(7.3)	(3.2)	4.9	2.4
TOTAL	1,300.0	1,213.1	(18.8)	(19.5)	1,281.2	1,193.6	(7.3)	(3.2)	4.9	2.4

Figures in millions of euros

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
	2023	2022
Debtors of sales or provision of services	310.8	164.4
Receivables for claim recovery (including collaboration agreements with other insurance companies)	27.9	55.4
Advance payment of policies (Life insurance)	22.3	23.9
Legal deposits	330.2	301.1
Receivables with Public Administrations	6.9	16.3
Balances receivable from personnel	22.0	33.3
Other debtors	46.2	151.7
TOTAL	766.3	746.1

Figures in millions of euros

Impairment is calculated and, where necessary, recognized, as described in the accounting policy 5.8 "Receivables" herein.

The balances included in the "Receivables" heading do not accrue interest and their liquidation is generally executed the following year.

6.6. ASSET IMPAIRMENT

The following tables show asset impairment for the last two periods:

2023

Impairment in:		Opening balance	Adjustmen ts to the opening	Changes to the scope		Recorded in results	Write-off of asset	Closing balance
			balance		Increase	Decrease
	Intangible assets	196.9	(5.9)	—	75.0	—	—	266.0
I.	Goodwill	193.5	(5.8)	—	75.0	—	—	262.7
II.	Other intangible assets	3.4	(0.1)	—	—	—	—	3.3
	Property, plant and equipment	6.9	—	—	4.2	(2.7)	—	8.4
I.	Real estate for own use	6.9	—	—	4.2	(2.7)	—	8.4
II.	Other property, plant and equipment	—	—	—	—	—	—	—
	Investments	297.7	(51.3)	—	27.6	(13.1)	(12.3)	248.6
I.	Real estate investments	190.8	(0.1)	—	14.9	(5.6)	(11.2)	188.8
II.	Financial investments
	Financial investments at fair value through P&L	—	—	—	—	—	—	—
	Financial investments at fair value through other comprehensive income	106.9	(55.1)	—	11.2	(7.5)	(0.3)	55.2
	Financial investments at amortized cost	—	3.9	—	1.3	—	(0.6)	4.6
III.	Investments recorded by applying the equity method	—	—	—	—	—	—	—
V.	Other investments	—	—	—	0.2	—	(0.2)	—
	Inventories	93.2	—	—	0.8	(1.1)	—	92.9
	Receivables	19.5	0.5	—	7.3	(4.9)	(3.6)	18.8
III.	Tax receivables	—	—	—	—	—	—	—
IV.	Social security and other receivables	19.5	0.5	—	7.3	(4.9)	(3.6)	18.8
	Other assets	0.1	—	—	11.1	(4.4)	(5.8)	1.0
	TOTAL IMPAIRMENT	614.3	(56.7)	—	126.0	(26.2)	(21.7)	635.7

Figures in millions of euros

2022

Impairment in:		Opening balance	Adjustments to the opening	Changes to the scope	Recorded in results		Write-off of asset	Closing balance
			balance		Increase	Decrease
	Intangible assets	207.3	8.9	(19.3)	—	—	—	196.9
I.	Goodwill	194.2	8.8	(9.5)	—	—	—	193.5
II.	Other intangible assets	13.1	0.1	(9.8)	—	—	—	3.4
	Property, plant and equipment	8.2	(2.2)	—	2.0	(1.1)	—	6.9
I.	Real estate for own use	6.2	(0.2)	—	2.0	(1.1)	—	6.9
II.	Other property, plant and equipment	2.0	(2.0)	—	—	—	—	—
Investments		286.1	1.7	(2.4)	24.2	(5.5)	(6.4)	297.7
I.	Real estate investments	181.9	1.1	(2.4)	20.1	(5.5)	(4.4)	190.8
II.	Financial investments	—	—	—	—	—	—	—
	Financial investments at fair value through P&L	—	—	—	—	—	—	—
	Financial investments at fair value through other comprehensive income	104.2	0.6	—	4.1	—	(2.0)	106.9
	Financial investments at amortized cost	—	—	—	—	—	—	—
III.	Investments recorded by applying the equity method	—	—	—	—	—	—	—
V.	Other investments	—	—	—	—	—	—	—
	Inventories	91.8	(0.1)	—	2.5	(1.0)	—	93.2
	Receivables	19.0	(0.3)	—	3.2	(2.4)	—	19.5
III.	Tax receivables	—	—	—	—	—	—	—
IV.	Corporate and other receivables	19.0	(0.3)	—	3.2	(2.4)	—	19.5
	Other assets	0.1	—	—	— —		—	0.1
	TOTAL IMPAIRMENT	612.5	8.0	(21.7)	31.9	(10.0)	(6.4)	614.3

Figures in millions of euros

61 Consolidated Annual Accounts 2023

6.7. CASH FLOW

Expenditure

Over the course of 2023 and 2022, there were no relevant disbursements related to investments in Group companies or the acquisition of businesses.

Payments received

In 2023 and 2022, there were cash inflows from sale operations, the most notable of which were:

2023

• In December 2023 the sale of the whole of the shareholding in the entity MAPFRE VIDEO Y COMUNICACIÓN S.A. took place, for a consideration of 89.6 million euros, generating an attributable result of 56.8 million euros for the Group.

2022

• • In August 2022 the sale of the whole of the shareholding in PT ASURANSI BINA DANA ARTA TBK (ABDA), registered in Indonesia, took place, for a consideration of 59.4 million euros, which implied an attributable result of 5.9 million euros for the Group.
• In October 2022 the sale of MAPFRE Insular Insurance Corporation, registered in the Philippines, was closed, , for a consideration of 17.9 million euros, which has implied an attributable result of 3.4 million euros.
• On October 10, the resolution of the agreements with UNICAJA was formalized, after which, said company acquired 50 percent, belonging to MAPFRE, of CCM Vida y Pensiones, through a contribution of 131.4 million euros, generating a net result of 1.7 million euros.

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 non-controlling shareholder. The purchase price for the MAPFRE RE shares will be calculated using the previously agreed formula. At December 31, 2023 and 2022, 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 128.9 and 109.6 million euros, respectively.

No significant non-monetary transactions related to investment and financing activities have been excluded from the cash flow statement.

6.8. NON-CURRENT ASSETS HELD FOR SALE, ASSOCIATED LIABILITIES AND DISCONTINUED OPERATIONS

At December 31, 2023 and 2022, the main noncurrent assets held for sale, discontinued operations and associated liabilities were as follows:

Item	Non-current assets classified as held-for-sale		Discontinued operations		Total
	2023	2022	2023	2022	2023	2022
Assets
Intangible assets	0.6	—	—	—	0.6	—
Property, plant and equipment	—	—	—	—	—	—
Investments	11.0	—	—	—	11.0	—
Credits	7.7	8.1	—	—	7.7	8.1
Cash	5.7	3.6	—	—	5.7	3.6
Other assets	44.7	37.4	—	—	44.7	37.4
Total assets	69.7	49.1	—	—	69.7	49.1
Related liabilities
Insurance liabilities	16.7	1.3	—	—	16.7	1.3
Tax liabilities	2.3	—	—	—	2.3	—
Other debts	12.7	10.4	—	—	12.7	10.4
Total liabilities	31.7	11.7	—	—	31.7	11.7

Figures in millions of euros

At December 31, 2023 and 2022, for FUNESPAÑA there were "Assets held for sale" for the amount of 25.1 million euros.

The definitive sale of the non-current assets held for sale corresponding to 2023 is expected to take place in the next 12 months, with no loss expected from said transaction.

6.9. 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, 2023 and 2022 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 10, 2023 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 Board of Directors was authorized to issue convertible analogous fixed-income securities or debentures, for a maximum amount of 2 billion euros.

CARTERA MAPFRE directly held 69.7 percent of the share capital at December 31, 2023 and 2022.

All shares representing the share capital of the controlling company are admitted to official trading on the Spanish stock market.

The share premium reached 1.5 billion euros in the last two years and is freely available.

Treasury Stock

Sales transactions of MAPFRE S.A. shares, where applicable, are in line with what is set out in the Internal Code of Conduct regarding securities issued by MAPFRE, the Market Abuse Regulation, and Memorandum 1/2017 from the National Commission on Financial Markets.

63 Consolidated Annual Accounts 2023

In 2023 and 2022, no MAPFRE S.A. share purchases were carried out, and 35,760 and 203,765 shares, respectively, were given to directors of subsidiaries as part of variable remuneration schemes, representing 0.0012 percent and 0.0066 percent of capital, for the amount of 0.01 and 0.4 million euros, respectively.

Additionally, 4,624,725 shares (10,070,672 in 2022) were given to employees as part of the Stock-option plan described in "Accounting policies" Note 5.18, recording a negative impact of 0.9 million euros (3.7 million euros in 2022), which has been included in the heading "Reserves".

At December 31, 2023 and 2022, the controlling company owned 15,129,098 and 19,789,583 shares of treasury stock respectively, representing 0.49 and 0.64 percent of the capital, for the amount of 31.7 and 41.4 million euros, respectively.

At December 31, 2023 and 2022, 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 international accounting standards, must be recorded in the Group's equity accounts.

The following table shows the nature of the "Valuation change adjustments" recorded under that Equity heading at the close of the last two financial years:

Item	Amount
	2023	2022
Fixed income
Capital gains	1,369.4	941.9
Capital losses	(1,483.2)	(1,453.3)
Equity and Mutual Funds
Capital gains	42.7	17.3
Capital losses	(43.9)	(86.5)
Other adjustments	(297.1)	(342.9)
TOTAL	(412.1)	(923.4)

Figures in millions of euros

Restrictions on the availability of reserves

The heading "Reserves" includes the controlling company's legal reserve, amounting to 61.6 million euros at December 31, 2023 and 2022, 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 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 6.16.

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 45 percent and 65 percent of the result for 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.

6.10. SUBORDINATED LIABILITIES

At December 31, 2023 and 2022, the balance of this account included the amortized cost of the subordinated debt issued by the controlling company, corresponding to the issuances in April 2022, September 2018 and March 2017. The most relevant terms and conditions of these are described in the accompanying chart:

Terms and	Issuance
Conditions	April 2022	September 2018	March 2017
Nominal amount	500.0	500.0	600.0
Issue date	6/4/2022	7/9/2018	03.31.2017
Maturity	04.13.2030	7/9/2048	03.31.2047
First call option	–	7/9/2028	03.31.2027
Interest rate
- Until 1st call option	2.875 %	4.125 %	4.375 %
- After 1st call option	–	Euribor 3M + 4,30%	Euribor 3M + 4,543%
Listing	AIAF market	AIAF market	AIAF market
Rating	BBB-	BBB-	BBB
Accrued unpaid interest at December 31, 2023	10.3	6.5	19.8
Price at close of period
-2023	90.5 %	96.3 %	98.5 %
-2022	82.4 %	90.4 %	94.5 %

Figures in millions of euros

The issuances, issued under Spanish jurisdiction, contemplate:

• a. 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.
• b. Interest deferral, where 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.

The following table includes a breakdown of the fair value of each of the abovementioned issuances.

Issuance	Book value		Fair value
	2023	2022	2023	2022
April 2022	505	504.2	462.8	422.3
September 2018	504.6	504.3	488	458.5
March 2017	618.8	618.6	610.8	586.8
TOTAL	1628.4	1627.1	1561.6	1467.6

Figures in millions of euros

6.11. FINANCIAL LIABILITIES

The following table shows the fair value breakdown of the financial liabilities:

		Book value	Fair value
Item	2023	2022	2023	2022
Issue of debentures and other negotiable securities	864.2	863.5	844.5	795.6
Due to credit institutions	250.6	444.2	250.6	444.2
Other financial liabilities	1,233.4	2,047.0	1,339.0	2,038.1
TOTAL	2,348.2	3,354.7	2,434.1	3,277.9

Figures in millions of euros

At December 31, 2023 and 2022, 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.

Issuance of debentures and other negotiable securities

At December 31, 2023 and 2022, 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 activity are described in the following paragraphs.

• a. Issue type: simple debentures represented by book entries
• b. Nominal amount: 1 billion euros
• c. Issuance date: May 19, 2016
• d. Issuance period: 10 years
• e. Maturity: May 19, 2026
• f. Redemption: single payment on maturity and at par, with no expense for the holder
• g. Listing: Fixed-income AIAF market
• h. Coupon: annual fixed 1.625 percent, payable on the anniversaries of the issue date up to and including the end maturity date
• i. Issue rating: A-

The accrued interest outstanding at December 31, 2023 and 2022, amounted to 8.6 million euros. At December 31, 2023 and 2022 the securities were listed at 97.5 and 91.8 percent of their face value, respectively.

Debt payable to lending institutions

The breakdown of the amounts due to credit institutions at December 31, 2023 and 2022, is shown in the accompanying chart:

Class of debt	Book value		Average interest rate %
	2023	2022	2023	2022
Finance lease	2.6	2.4	1.7	1.6
Credits	139.6	239.3	4.6	0.1
Loans	108.4	202.5	4.5	0.9
Other	—	—	—	—
TOTAL	250.6	444.2	—	—

Figures in millions of euros

• Credits

At December 31, 2023 and 2022 there is syndicated line of credit granted by a group of ten banking companies and which accrues interest at a rate pegged to market variables, which matures on February 26, 2025.

Limit		Drawn down
2023	2022	2023	2022
1,000.0	1,000.0	80.0	237.0

Figures in millions of euros

It was novated in 2018, 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

• Loans

The breakdown of the main loans in force at December 31, 2023 and 2022 is as follows:

Amount
2023	2022
55.6	73.3
12.8	26.5
17.2	22.9
85.6	122.7

Figures in millions of euros

The MAPFRE VIDA and MAPFRE ESPAÑA 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.

The MAPFRE DOMINICANA loan accrues an interest rate linked to market variables and to Group sustainability parameters, amortizing via flat halfyear payments.

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, 2023 and 2022:

	Amount
Other financial liabilities	2023	2022
Other financial liabilities measured at fair value through P&L	567.3	586.4
Non-controlling interests in mutual funds (Note 3.2)	257.6	1,039.8
Financial liabilities from leases (Note 6.3)	309.2	317.1
Other financial liabilities	128.8	103.7
TOTAL	1,262.9	2,047.0

Figures 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 plus a 1.5 percent spread, which matures September 10, 2024, and is renewable for successive annual periods. In 2023 and 2022, no drawdowns have been made on this loan.

At December 31, 2023 and 2022 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 "Noncontrolling interests in mutual funds", valued at settlement value (mostly Level 1 and Level 3).

In 2023 and 2022 no financial liabilities were transferred between Levels 1, 2 and 3 established in the legislation. 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.

66 Consolidated Annual Accounts 2023

6.12. INSURANCE AND REINSURANCE OPERATIONS

A) INFORMATION REGARDING AMOUNTS RECOGNIZED ON THE BALANCE SHEET AND INCOME STATEMENT

The following is a breakdown, for the last two years, of assets, liabilities, and revenue and expenses relating to insurance and reinsurance contracts, by valuation method indicated in note 5.14.

2023

	BALANCE		INCOME STATEMENT
BREAKDOWN BY VALUATION METHOD	Insurance and reinsurance contract assets	Insurance and reinsurance contract liabilities	Insurance and reinsurance revenue	Insurance and reinsurance service expenses	Finance result from Insurance and Reinsurance contracts
Direct Insurance and Accepted Reinsurance
Building Block Approach (BBA)	9.0	11,164.2	1,499.9	(1,225.9)	(407.6)
Variable Fee Approach (VFA)	—	8,848.2	175.9	(103.6)	(769.7)
Premium Allocation Approach (PAA)	—	18,349.3	23,105.2	(21,016.8)	(355.7)
Total direct insurance contracts	9.0	38,361.7	24,781.0	(22,346.3)	(1,533.0)
Ceded Reinsurance
Building Block Approach (BBA)	—	15.5	—	—	—
Premium Allocation Approach (PAA)	5,938.1	—	2,866.1	(4,259.7)	95.4
Total reinsurance contracts	5,938.1	15.5	2,866.1	(4,259.7)	95.4

Figures in millions of euros

2022

	BALANCE		INCOME STATEMENT
BREAKDOWN BY VALUATION METHOD	Insurance and reinsurance contract assets	Insurance and reinsurance contract liabilities	Insurance and reinsurance revenue	Insurance and reinsurance service expenses	Finance result from Insurance and Reinsurance contracts
Direct Insurance and Accepted Reinsurance
Building Block Approach (BBA)	6.1	9,324.3	1,149.9	(1,013.1)	(302.0)
Variable Fee Approach (VFA)	—	8,717.6	349.6	(329.9)	271.3
Premium Allocation Approach (PAA)	—	17,522.8	21,217.7	(19,062.3)	73.1
Total direct insurance contracts	6.1	35,564.7	22,717.2	(20,405.3)	42.4
Ceded Reinsurance
Building Block Approach (BBA)	3.5	14.5	0.6	(5.0)	6.5
Premium Allocation Approach (PAA)	5,663.2	—	2,630.2	(4,070.5)	87.3
Total reinsurance contracts	5,666.7	14.5	2,630.8	(4,075.5)	93.8

A.1) Breakdown of insurance contracts measured using the Building Block Approach (BBA)

The accompanying chart shows the movements in the last two years of the balances of assets of liabilities from insurance contracts that are included on the balance sheet and which were measured using the building block approach (BBA):

2023

For remaining coverage
BBA NET ASSET AND LIABILITY MOVEMENTS	Excluding the loss component	Loss component	For incurred claims	Total written insurance contracts
Opening balance of insurance contracts- Assets	(6.1)	—	—	(6.1)
Opening balance of insurance contracts- Liabilities	8,971.3	29.4	323.7	9,324.4
OPENING BALANCE OF INSURANCE CONTRACTS - NET AT 12/31/2022	8,965.2	29.4	323.7	9,318.3
Adjustments to opening balance	84.2	1.5	0.1	85.8
Changes in scope	(13.1)	—	—	(13.1)
ADJUSTED OPENING BALANCE (A)	9,036.3	30.9	323.8	9,391.0
Insurance revenue	(1,499.9)	—	—	(1,499.9)
Insurance service expenses	193.4	72.0	960.5	1,225.9
Incurred claims and other expenses	—	—	967.7	967.7
Amortization of insurance acquisition cash flows	193.4	—	—	193.4
Losses on onerous contracts and reversals of those losses	—	72.0	—	72.0
Changes to liabilities for incurred claims	—	—	(7.2)	(7.2)
Result from insurance service	(1,306.5)	72.0	960.5	(274.0)
Recognized in Profit & Loss	390.0	0.3	17.3	407.6
Recognized in other comprehensive income	307.3	—	9.5	316.8
Financial result from insurance service	697.3	0.3	26.8	724.4
TOTAL CHANGES IN THE STATEMENT OF PROFIT & LOSS AND OCI (B)	(609.2)	72.3	987.3	450.4
INVESTMENT COMPONENT (C)	(474.8)	—	474.8	—
Premiums paid	2,892.5	—	—	2,892.5
Claims and other expenses from insurance service	—	—	(1,426.4)	(1,426.4)
Insurance acquisition cash flows	(152.3)	—	—	(152.3)
NET CASH FLOWS (D)	2,740.2	—	(1,426.4)	1,313.8
OTHER MOVEMENTS (E)	—	—	—	—
CLOSING BALANCE OF INSURANCE CONTRACTS - NET AT 12/31/2023 (A+B+C+D+E)	10,692.8	103.1	359.3	11,155.2
Closing balance of insurance contracts- Assets	(10.7)	—	1.7	(9.0)
Closing balance of insurance contracts- Liabilities	10,703.5	103.1	357.6	11,164.2

2022

	For remaining coverage
BBA NET ASSET AND LIABILITY MOVEMENTS	Excluding the loss component	Loss component	For incurred claims	Total written insurance contracts
Opening balance of insurance contracts- Assets	(14.2)	—	—	(14.2)
Opening balance of insurance contracts- Liabilities	11,038.8	—	314.9	11,353.7
OPENING BALANCE OF INSURANCE CONTRACTS - NET AT 12/31/2021	11,024.6	—	314.9	11,339.5
Adjustments to opening balance	124.5	(0.3)	14.9	139.1
Changes in scope	(273.7)	—	(6.8)	(280.5)
ADJUSTED OPENING BALANCE (A)	10,875.4	(0.3)	323.0	11,198.1
Insurance revenue	(1,149.9)	—	—	(1,149.9)
Insurance service expenses	161.5	29.2	822.4	1,013.1
Incurred claims and other expenses	—	—	779.3	779.3
Amortization of insurance acquisition cash flows	161.5	—	—	161.5
Losses on onerous contracts and reversals of those losses	—	29.2	—	29.2
Changes to liabilities for incurred claims	—	—	43.1	43.1
Result from insurance service	(988.4)	29.2	822.4	(136.8)
Recognized in Profit & Loss	284.4	0.9	16.7	302.0
Recognized in other comprehensive income	(2,254.6)	(0.3)	(13.1)	(2,268.0)
Financial result from insurance service	(1,970.2)	0.6	3.6	(1,966.0)
TOTAL CHANGES IN THE STATEMENT OF PROFIT & LOSS AND OCI (B)	(2,958.6)	29.8	826.0	(2,102.8)
INVESTMENT COMPONENT (C)	(108.6)	—	108.6	—
Premiums paid	1,308.2	—	—	1,308.2
Claims and other expenses from insurance service	—	—	(934.0)	(934.0)
Insurance acquisition cash flows	(151.2)	—	—	(151.2)
NET CASH FLOWS (D)	1,157.0	—	(934.0)	223.0
OTHER MOVEMENTS (E)	—	—	—	—
CLOSING BALANCE OF INSURANCE CONTRACTS - NET AT 12/31/2022 (A+B+C+D+E)	8,965.2	29.4	323.7	9,318.3
Closing balance of insurance contracts- Assets	(6.1)	—	—	(6.1)
Closing balance of insurance contracts- Liabilities	8,971.3	29.4	323.7	9,324.4

Figures in millions of euros

The reconciliation of opening and closing balances for insurance contract assets and liabilities measured using the building block approach (BBA), with a breakdown by component, is as follows:

2023

BBA
RECONCILIATION BY COMPONENT	Present value of future cash flow estimates	Risk adjustment	Contractual Service Margin	Total
Opening balance of insurance contracts- Assets	(41.8)	12.3	23.4	(6.1)
Opening balance of insurance contract- Liabilities	7,269.1	111.4	1,943.9	9,324.4
OPENING BALANCE OF INSURANCE CONTRACTS - NET AT 12/31/2022	7,227.3	123.7	1,967.3	9,318.3
Adjustments to opening balance	10.0	3.2	72.6	85.8
Changes in scope	(9.5)	—	(3.6)	(13.1)
ADJUSTED OPENING BALANCE (A)	7,227.8	126.9	2,036.3	9,391.0
Changes related to future services	(453.1)	33.4	451.7	32.0
Contracts initially recognized in the period	(294.7)	32.6	257.6	(4.5)
Changes in estimates that adjust the Contractual Service Margin	(194.6)	0.6	194.1	0.1
Changes in estimates that do not adjust the Contractual Service Margin (losses in groups of contracts at initial recognition and reversal of those losses)	36.2	0.2	—	36.4
Changes related to current services	(12.7)	(18.8)	(302.1)	(333.6)
Contractual Service Margin recognized for services provided	—	—	(302.1)	(302.1)
Non financial risk adjustment recognized for the risk expired	—	(18.8)	—	(18.8)
Experience adjustments	(12.7)	—	—	(12.7)
Changes related to past services	25.8	1.8	—	27.6
Adjustment to liabilities for incurred claims	25.8	1.8	—	27.6
Insurance service result	(440.0)	16.4	149.6	(274.0)
Recognized in Profit & Loss	309.7	7.0	90.9	407.6
Recognized in other comprehensive income	311.3	5.5	—	316.8
Financial result from insurance service	621.0	12.5	90.9	724.4
TOTAL CHANGES IN THE STATEMENT OF PROFIT & LOSS AND OCI (B)	181.0	28.9	240.5	450.4
Premiums paid	2,892.5	—	—	2,892.5
Claims and other expenses from insurance service	(1,426.4)	—	—	(1,426.4)
Insurance acquisition cash flows	(152.3)	—	—	(152.3)
NET CASH FLOWS (C)	1,313.8	—	—	1,313.8
OTHER MOVEMENTS (D)	—	—	—	—
CLOSING BALANCE OF INSURANCE CONTRACTS - NET 12/31/2023 (A+B+C+D)	8,722.6	155.8	2,276.8	11,155.2
Closing balance of insurance contracts- Assets	(56.1)	14.9	32.2	(9.0)
Closing balance of insurance contracts- Liabilities	8,778.7	140.9	2,244.6	11,164.2

BBA	Present value of	Risk	Contractual
RECONCILIATION BY COMPONENT	future cash flow estimates	adjustmen t	Service Margin	Total
Opening balance of insurance contracts- Assets	(51.3)	14.7	22.4	(14.2)
Opening balance of insurance contract- Liabilities	9,401.1	127.5	1,825.1	11,353.7
OPENING BALANCE OF INSURANCE CONTRACTS - NET AT 12/31/2021	9,349.8	142.2	1,847.5	11,339.5
Adjustments to opening balance	136.7	6.2	(3.9)	139.0
Changes in scope	(256.7)	(3.3)	(20.5)	(280.5)
ADJUSTED OPENING BALANCE (A)	9,229.8	145.1	1,823.1	11,198.0
Changes related to future services	(301.4)	18.2	312.6	29.4
Contracts initially recognized in the period	(280.8)	20.3	279.1	18.6
Changes in estimates that adjust the Contractual Service Margin	(31.4)	(2.1)	33.5	—
Changes in estimates that do not adjust the Contractual Service Margin (losses in groups of contracts at initial recognition and reversal of those losses)	10.8	—	—	10.8
Changes related to current services	37.2	(12.0)	(234.9)	(209.7)
Contractual Service Margin recognized for services provided	—	—	(234.9)	(234.9)
Non financial risk adjustment recognized for the risk expired	—	(12.0)	—	(12.0)
Experience adjustments	37.2	—	—	37.2
Changes related to past services	43.9	(0.3)	—	43.6
Adjustment to liabilities for incurred claims	43.9	(0.3)	—	43.6
Insurance service result	(220.3)	5.9	77.7	(136.7)
Recognized in Profit & Loss	236.2	(0.7)	66.5	302.0
Recognized in other comprehensive income	(2,241.4)	(26.6)	—	(2,268.0)
Financial result from insurance service	(2,005.2)	(27.3)	66.5	(1,966.0)
TOTAL CHANGES IN THE STATEMENT OF PROFIT & LOSS AND OCI (B)	(2,225.5)	(21.4)	144.2	(2,102.7)
Premiums paid	1,308.2	—	—	1,308.2
Claims and other expenses from insurance service	(934.0)	—	—	(934.0)
Insurance acquisition cash flows	(151.2)	—	—	(151.2)
NET CASH FLOWS (C)	223.0	—	—	223.0
OTHER MOVEMENTS (D)	—	—	—	—
CLOSING BALANCE OF INSURANCE CONTRACTS - NET 12/31/2022 (A+B+C+D)	7,227.3	123.7	1,967.3	9,318.3
Closing balance of insurance contracts- Assets	(41.8)	12.3	23.4	(6.1)
Closing balance of insurance contracts- Liabilities	7,269.1	111.4	1,943.9	9,324.4

Figures in millions of euros

A.2) Breakdown of insurance contracts measured using the variable fee approach (VFA)

The accompanying chart shows the movements in the last two years of the balances of assets of liabilities from insurance contracts that are included on the balance sheet and which were measured using the variable fee approach (VFA):

2023

VFA	For remaining coverage
NET ASSET AND LIABILITY MOVEMENTS	Excluding the loss component	Loss component	For incurred claims	Total written insurance contracts
Opening balance of insurance contracts- Assets	—	—	—	—
Opening balance of insurance contract- Liabilities	8,516.4	18.6	182.6	8,717.6
OPENING BALANCE OF INSURANCE CONTRACTS - NET AT 12/31/2022	8,516.4	18.6	182.6	8,717.6
Adjustments to opening balance	66.0	(8.5)	(11.5)	46.0
Changes in scope	—	—	—	—
ADJUSTED OPENING BALANCE (A)	8,582.4	10.1	171.1	8,763.6
Insurance revenue	(175.9)	—	—	(175.9)
Insurance service expenses	9.0	(3.7)	98.3	103.6
Claims and other expenses	—	—	109.9	109.9
Amortization of insurance acquisition cash flows	9.0	—	—	9.0
Losses on onerous contracts and reversals of those losses	—	(3.7)	—	(3.7)
Changes to liabilities for incurred claims	—	—	(11.6)	(11.6)
Insurance service result	(166.9)	(3.7)	98.3	(72.3)
Recognized in Profit & Loss	767.8	0.5	1.4	769.7
Recognized in other comprehensive income	121.5	—	—	121.5
Financial result from insurance service	889.3	0.5	1.4	891.2
TOTAL CHANGES IN THE STATEMENT OF PROFIT & LOSS AND OCI (B)	722.4	(3.2)	99.7	818.9
INVESTMENT COMPONENT (C)	(1,349.9)	—	1,349.9	—
Premiums paid	756.3	—	—	756.3
Claims and other expenses from insurance service	—	—	(1,438.5)	(1,438.5)
Insurance acquisition cash flows	(51.9)	—	—	(51.9)
NET CASH FLOWS (D)	704.4	—	(1,438.5)	(734.1)
OTHER MOVEMENTS (E)	—	—	—	—
CLOSING BALANCE OF INSURANCE CONTRACTS - NET 12/31/2023 (A+B+C+D+E)	8,659.2	6.9	182.1	8,848.2
Closing balance of insurance contracts- Assets	—	—	—	—
Closing balance of insurance contracts- Liabilities	8,659.2	6.9	182.1	8,848.2

2022

VFA	For remaining coverage
NET ASSET AND LIABILITY MOVEMENTS	Excluding the loss component	Loss component	For incurred claims	Total written insurance contracts
Opening balance of insurance contracts- Assets	—	—	—	—
Opening balance of insurance contract- Liabilities	10,066.4	—	175.2	10,241.6
OPENING BALANCE OF INSURANCE CONTRACTS - NET AT 12/31/2021	10,066.4	—	175.2	10,241.6
Adjustments to opening balance	61.4	(0.5)	2.9	63.8
Changes in scope	(339.0)	—	(0.9)	(339.9)
ADJUSTED OPENING BALANCE (A)	9,788.8	(0.5)	177.2	9,965.5
Insurance revenue	(349.6)	—	—	(349.6)
Insurance service expenses	13.5	19.1	297.3	329.9
Claims and other expenses	—	—	292.2	292.2
Amortization of insurance acquisition cash flows	13.5	—	—	13.5
Losses on onerous contracts and reversals of those losses	—	19.1	—	19.1
Changes to liabilities for incurred claims	—	—	5.1	5.1
Insurance service result	(336.1)	19.1	297.3	(19.7)
Recognized in Profit & Loss	(269.4)	—	(1.9)	(271.3)
Recognized in other comprehensive income	(749.2)	—	—	(749.2)
Financial result from insurance service	(1,018.6)	—	(1.9)	(1,020.5)
TOTAL CHANGES IN THE STATEMENT OF PROFIT & LOSS AND OCI (B)	(1,354.7)	19.1	295.4	(1,040.2)
INVESTMENT COMPONENT (C)	(684.0)	—	684.0	—
Premiums paid	826.2	—	—	826.2
Claims and other expenses from insurance service	—	—	(974.0)	(974.0)
Insurance acquisition cash flows	(59.9)	—	—	(59.9)
NET CASH FLOWS (D)	766.3	—	(974.0)	(207.7)
OTHER MOVEMENTS (E)	—	—	—	—
CLOSING BALANCE OF INSURANCE CONTRACTS - NET 12/31/2022 (A+B+C+D+E)	8,516.4	18.6	182.6	8,717.6
Closing balance of insurance contracts- Assets	—	—	—	—
Closing balance of insurance contracts- Liabilities	8,516.4	18.6	182.6	8,717.6

Figures in millions of euros

The reconciliation of opening and closing balances for insurance contract assets and liabilities measured using the variable fee approach (VFA), with a breakdown by component, is as follows:

VFA
RECONCILIATION BY COMPONENT	Present value of future cash flow estimates	Risk adjustment	Contractual Service Margin	Total
Opening balance of insurance contracts- Assets	—	—	—	—
Opening balance of insurance contract- Liabilities	8,325.7	46.7	345.2	8,717.6
OPENING BALANCE OF INSURANCE CONTRACTS - NET AT 12/31/2022	8,325.7	46.7	345.2	8,717.6
Adjustments to opening balance	49.4	1.1	(4.5)	46.0
Changes in scope	—	—	—	—
ADJUSTED OPENING BALANCE (A)	8,375.1	47.8	340.7	8,763.6
Changes related to future services	(96.1)	20.5	32.5	(43.1)
Contracts initially recognized in the period	(56.2)	5.5	36.1	(14.6)
Changes in estimates that adjust the Contractual Service Margin	(11.4)	15.0	(3.6)	—
Changes in estimates that do not adjust the Contractual Service Margin (losses in groups of contracts at initial recognition and reversal of those losses)	(28.5)	—	—	(28.5)
Changes related to current services	3.2	(5.7)	(37.3)	(39.8)
Contractual Service Margin recognized for services provided	—	—	(37.3)	(37.3)
Non financial risk adjustment recognized for the risk expired	—	(5.7)	—	(5.7)
Experience adjustments	3.2	—	—	3.2
Changes related to past services	10.4	0.2	—	10.6
Adjustment to liabilities for incurred claims	10.4	0.2	—	10.6
Insurance service result	(82.5)	15.0	(4.8)	(72.3)
Recognized in Profit & Loss	769.9	—	(0.2)	769.7
Recognized in other comprehensive income	121.4	—	—	121.4
Financial result from insurance service	891.3	—	(0.2)	891.1
TOTAL CHANGES IN THE STATEMENT OF PROFIT & LOSS AND OCI (B)	808.7	15.0	(5.0)	818.7
Premiums paid	756.3	—	—	756.3
Claims and other expenses from insurance service	(1,438.5)	—	—	(1,438.5)
Insurance acquisition cash flows	(51.9)	—	—	(51.9)
NET CASH FLOWS (C)	(734.1)	—	—	(734.1)
OTHER MOVEMENTS (D)	—	—	—	—
CLOSING BALANCE OF INSURANCE CONTRACTS - NET AT 12/31/2023 (A+B+C+D)	8,449.6	62.8	335.8	8,848.2
Closing balance of insurance contract- Assets	—	—	—	—
Closing balance of insurance contract - Liabilities	8,449.6	62.8	335.8	8,848.2

VFA RECONCILIATION BY COMPONENT	Present value of future cash flow estimates	Risk adjustm ent	Contractual Service Margin	Total
Opening balance of insurance contracts- Assets	–	–	–	–
Opening balance of insurance contract- Liabilities	9,843.9	37.1	360.6	10,241.6
OPENING BALANCE OF INSURANCE CONTRACTS - NET AT 12/31/2021	9,843.9	37.1	360.6	10,241.6
Adjustments to opening balance	61.6	0.1	2.1	63.8
Changes in scope	(328.7)	(1.6)	(9.6)	(339.9)
ADJUSTED OPENING BALANCE (A)	9,576.8	35.6	353.1	9,965.5
Changes related to future services	(25.7)	15.6	25.4	15.3
Contracts initially recognized in the period	(13.5)	4.9	27.6	19.0
Changes in estimates that adjust the Contractual Service Margin	(9.3)	11.5	(2.2)	–
Changes in estimates that do not adjust the Contractual Service Margin (losses in groups of contracts at initial recognition and reversal of those losses)	(2.9)	(0.8)	–	(3.7)
Changes related to current services	(2.2)	(4.6)	(33.0)	(39.8)
Contractual Service Margin recognized for services provided	–	–	(33.0)	(33.0)
Non financial risk adjustment recognized for the risk expired	–	(4.6)	–	(4.6)
Experience adjustments	(2.2)	–	–	(2.2)
Changes related to past services	4.5	0.1	–	4.6
Adjustment to liabilities for incurred claims	4.5	0.1	–	4.6
Insurance service result	(23.4)	11.1	(7.6)	(19.9)
Recognized in Profit & Loss	(271.0)	–	(0.3)	(271.3)
Recognized in other comprehensive income	(749.2)	–	–	(749.2)
Financial result from insurance service	(1,020.2)	–	(0.3)	(1,020.5)
TOTAL CHANGES IN THE STATEMENT OF PROFIT & LOSS AND OCI (B)	(1,043.4)	11.1	(7.9)	(1,040.2)
Premiums paid	826.2	–	–	826.2
Claims and other expenses from insurance service	(974.0)	–	–	(974.0)
Insurance acquisition cash flows	(59.9)	–	–	(59.9)
NET CASH FLOWS (C)	(207.7)	–	–	(207.7)
OTHER MOVEMENTS (D)	–	–	–	–
CLOSING BALANCE OF INSURANCE CONTRACTS - NET AT 12/31/2022 (A+B+C+D)	8,325.7	46.7	345.2	8,717.6
Closing balance of insurance contract- Assets	–	–	–	–
Closing balance of insurance contract - Liabilities	8,325.7	46.7	345.2	8,717.6

Figures in millions of euros

The following provides a breakdown of the composition and fair value of the underlying items in the contracts measured using the variable fee approach (VFA) in the last two years:

BREAKDOWN OF UNDERLYNG ASSETS	FAIR VALUE 2023 2022
Cash and cash equivalents	10.6	71.7
Real estate investments	155.5	172.3
Financial investments	8,794.8	8,611.7
Financial assets at fair value	8,783.9	8,557.5
Financial assets amortized cost	9.0	51.5
Repurchase agreements and securities lending	–	–
Finance derivatives	2.0	2.7
Other financial liabilities	–	–
TOTAL OF UNDERLYING ASSETS	8,960.9	8,855.7

A.3) Breakdown of insurance contracts measured using the premium allocation approach (PAA)

The accompanying chart shows the movements in the last two years of the balances of assets of liabilities from insurance contracts that are included on the balance sheet and which were measured using the premium allocation approach (PAA):

Figures in millions of euros

75 Consolidated Annual Accounts 2023

2023

PAA	For remaining coverage		For incurred claims
NET ASSET AND LIABILITY MOVEMENTS	Excluding the loss component	Loss component	Estimate of present value of future cash flows	Risk adjustment	Total written insurance contracts
Opening balance of insurance contracts- Assets	–	–	–	–	–
Opening balance of insurance contract- Liabilities	5,330.5	209.1	11,480.4	502.8	17,522.8
OPENING BALANCE OF INSURANCE CONTRACTS - NET AT 12/31/2022	5,330.5	209.1	11,480.4	502.8	17,522.8
Adjustments to opening balance	69.9	(5.3)	(370.9)	4.7	(301.6)
Changes in scope	(0.2)	–	(0.1)	–	(0.3)
ADJUSTED OPENING BALANCE (A)	5,400.2	203.8	11,109.4	507.5	17,220.9
Insurance revenue	(23,105.2)	–	–	–	(23,105.2)
Insurance service expenses	5,155.9	15.9	15,160.2	684.8	21,016.8
Claims and other expenses	–	–	14,431.3	612.0	15,043.3
Amortization of insurance acquisition cash flows	5,155.9	–	–	–	5,155.9
Losses on onerous contracts and reversals of those losses	–	15.9	–	–	15.9
Changes to liabilities for incurred claims	–	–	728.9	72.9	801.8
Insurance service result	(17,949.3)	15.9	15,160.2	684.8	(2,088.4)
Recognized in Profit & Loss	–	–	344.3	11.4	355.7
Recognized in other comprehensive income	–	–	–	–	–
Financial result from insurance service	–	–	344.3	11.4	355.7
TOTAL CHANGES IN THE STATEMENT OF PROFIT & LOSS AND OCI (B)	(17,949.3)	15.9	15,504.5	696.2	(1,732.7)
INVESTMENT COMPONENT (C)	–	–	–	–	–
Premiums paid	21,007.2	–	–	–	21,007.2
Claims and other expenses from insurance service	–	–	(14,359.1)	(611.5)	(14,970.6)
Insurance acquisition cash flows	(3,175.5)	–	–	–	(3,175.5)
NET CASH FLOWS (D)	17,831.7	–	(14,359.1)	(611.5)	2,861.1
OTHER MOVEMENTS (E)	–	–	–	–	–
CLOSING BALANCE OF INSURANCE CONTRACTS - NET AT 12/31/2023 (A+B+C+D+E)	5,282.6	219.7	12,254.8	592.2	18,349.3
Closing balance of insurance contract- Assets	–	–	–	–	–
Closing balance of insurance contract - Liabilities	5,282.6	219.7	12,254.8	592.2	18,349.3

2022

PAA	For remaining coverage For incurred claims
NET ASSET AND LIABILITY MOVEMENTS	Excluding the loss component	Loss component	Estimate of present value of future cash flows	Risk adjustment	Total written insurance contracts
Opening balance of insurance contracts- Assets	–	–	–	–	–
Opening balance of insurance contract- Liabilities	4,444.9	169.8	11,430.9	557.8	16,603.4
OPENING BALANCE OF INSURANCE CONTRACTS - NET AT 12/31/2021	4,444.9	169.8	11,430.9	557.8	16,603.4
Adjustments to opening balance	196.2	(0.9)	135.5	(24.7)	306.1
Changes in scope	25.8	–	(36.8)	(0.1)	(11.1)
ADJUSTED OPENING BALANCE (A)	4,666.9	168.9	11,529.6	533.0	16,898.4
Insurance revenue	(21,217.7)	–	–	–	(21,217.7)
Insurance service expenses	4,739.8	40.2	13,770.0	512.3	19,062.3
Claims and other expenses	–	–	13,964.6	535.3	14,499.9
Amortization of insurance acquisition cash flows	4,739.8	–	–	–	4,739.8
Losses on onerous contracts and reversals of those losses	–	40.2	–	–	40.2
Changes to liabilities for incurred claims	–	–	(194.5)	(23.0)	(217.5)
Insurance service result	(16,477.9)	40.2	13,770.0	512.3	(2,155.4)
Recognized in Profit & Loss	–	–	(65.9)	(7.2)	(73.1)
Recognized in other comprehensive income	–	–	–	–	–
Financial result from insurance service	–	–	(65.9)	(7.2)	(73.1)
TOTAL CHANGES IN THE STATEMENT OF PROFIT & LOSS AND OCI (B)	(16,477.9)	40.2	13,704.1	505.1	(2,228.5)
INVESTMENT COMPONENT (C)	–	–	–	–	–
Premiums paid	21,199.6	–	–	–	21,199.6
Claims and other expenses from insurance service	–	–	(13,753.3)	(535.3)	(14,288.6)
Insurance acquisition cash flows	(4,058.2)	–	–	–	(4,058.2)
NET CASH FLOWS (D)	17,141.5	–	(13,753.3)	(535.3)	2,852.9
OTHER MOVEMENTS (E)	–	–	–	–	–
CLOSING BALANCE OF INSURANCE CONTRACTS - NET AT 12/31/2022 (A+B+C+D+E)	5,330.5	209.1	11,480.4	502.8	17,522.8
Closing balance of insurance contract- Assets	–	–	–	–	–
Closing balance of insurance contract - Liabilities	5,330.5	209.1	11,480.4	502.8	17,522.8

Figures in millions of euros

A.4) Ceded reinsurance contracts

The accompanying chart shows the movements in the last two years of the balances of assets of liabilities from ceded reinsurance included on the balance sheet and which were measured using the premium allocation approach (PAA):

2023

PAA		For remaining coverage For incurred claims
NET ASSET AND LIABILITY MOVEMENTS - CEDED REINSURANCE	Excluding the loss component	Loss component	Estimate of present value of future cash flows	Risk adjustment	Total ceded reinsuranc e contracts
Opening balance from Ceded Reinsurance contracts - Assets	1,294.6	34.4	4,160.8	173.4	5,663.2
Opening balance of Ceded Reinsurance contract Liabilities	–	–	–	–	–
OPENING BALANCE OF Ceded Reinsurance CONTRACTS - NET AT 12/31/2022	1,294.6	34.4	4,160.8	173.4	5,663.2
Adjustments to opening balance	(198.1)	(0.8)	17.5	4.0	(177.4)
Changes in scope	(0.3)	–	–	–	(0.3)
ADJUSTED OPENING BALANCE (A)	1,096.2	33.6	4,178.3	177.4	5,485.5
Ceded Reinsurance revenue	(1.2)	9.3	2,596.9	261.6	2,866.6
Ceded Reinsurance service expenses	(4,259.7)	–	–	–	(4,259.7)
Finance revenue/(expenses) from Ceded Reinsurance service	–	–	93.8	1.6	95.4
Recognized in Profit & Loss	–	–	100.0	1.6	101.6
Recognized in other comprehensive income	–	–	–	–	–
Effect of changes in counterparty credit risk	–	–	(6.2)	–	(6.2)
TOTAL CHANGES IN THE STATEMENT OF PROFIT & LOSS AND OCI (B)	(4,260.9)	9.3	2,690.7	263.2	(1,297.7)
INVESTMENT COMPONENT (C)	–	–	–	–	–
Premiums ceded	4,702.3	–	–	–	4,702.3
Cash inflows	(204.5)	–	(2,507.7)	(239.8)	(2,952.0)
NET CASH FLOWS (D)	4,497.8	–	(2,507.7)	(239.8)	1,750.3
OTHER MOVEMENTS (E)	–	–	–	–	–
CLOSING BALANCE OF Ceded Reinsurance CONTRACTS - NET AT 12/31/2023 (A+B+C+D+E)	1,333.1	42.9	4,361.3	200.8	5,938.1
Closing balance from Ceded Reinsurance contracts - Assets	1,333.1	42.9	4,361.3	200.8	5,938.1
Closing balance from Ceded Reinsurance contracts - Liabilities	–	–	–	–	–

Figures in millions of euros

78 Consolidated Annual Accounts 2023

2022

PAA	For remaining coverage For incurred claims
NET ASSET AND LIABILITY MOVEMENTS - CEDED REINSURANCE	Excluding the loss component	Loss component	Estimate of present value of future cash flows	Risk adjustment	Total ceded reinsuranc e contracts
Opening balance from Ceded Reinsurance contracts - Assets	1,024.1	56.4	4,123.0	206.0	5,409.5
Opening balance of Ceded Reinsurance contract Liabilities	–	–	–	–	–
OPENING BALANCE OF Ceded Reinsurance CONTRACTS - NET AT 12/31/2021	1,024.1	56.4	4,123.0	206.0	5,409.5
Adjustments to opening balance	205.6	(2.6)	115.7	1.7	320.4
Changes in scope	10.3	–	(9.3)	–	1.0
ADJUSTED OPENING BALANCE (A)	1,240.0	53.8	4,229.4	207.7	5,730.9
Ceded Reinsurance revenue	–	(19.4)	2,445.9	203.7	2,630.2
Ceded Reinsurance service expenses	(4,070.5)	–	–	–	(4,070.5)
Finance revenue/(expenses) from Ceded Reinsurance service	–	–	98.1	(10.8)	87.3
Recognized in Profit & Loss	–	–	87.6	(10.8)	76.8
Recognized in other comprehensive income	–	–	–	–	–
Effect of changes in counterparty credit risk	–	–	10.5	–	10.5
TOTAL CHANGES IN THE STATEMENT OF PROFIT & LOSS AND OCI (B)	(4,070.5)	(19.4)	2,544.0	192.9	(1,353.0)
INVESTMENT COMPONENT (C)	–	–	–	–	–
Premiums ceded	3,917.7	–	–	–	3,917.7
Cash inflows	207.4	–	(2,612.6)	(227.2)	(2,632.4)
NET CASH FLOWS (D)	4,125.1	–	(2,612.6)	(227.2)	1,285.3
OTHER MOVEMENTS (E)	–	–	–	–	–
CLOSING BALANCE OF Ceded Reinsurance CONTRACTS - NET AT 12/31/2022 (A+B+C+D+E)	1,294.6	34.4	4,160.8	173.4	5,663.2
Closing balance from Ceded Reinsurance contracts - Assets	1,294.6	34.4	4,160.8	173.4	5,663.2
Closing balance from Ceded Reinsurance contracts - Liabilities	–	–	–	–	–

Figures in millions of euros

B) INFORMATION REGARDING NEW CONTRACTS RECOGNIZED IN THE YEAR

The accompanying charts show the amount recognized on the balance sheet in the last two years for new written insurance contracts recorded during the year and which were measured using a method other than the premium allocation approach (PAA):

a. Building block approach – BBA

2023

EFFECT OF CONTRACTS RECOGNIZED IN THE YEAR - BBA	WRITTEN INSURANCE CONTRACTS		WRITTEN REINSURANCE CONTRACTS HELD
	NON ONEROUS	ONEROUS	NON ONEROUS	ONEROUS
ESTIMATES OF FUTURE CASH FLOWS, EXCLUDING ACQUISITION CASH FLOWS	2,233.9	–	3.3	–
ESTIMATES OF INSURANCE ACQUISITION CASH FLOWS	444.7	–	–	–
ESTIMATES OF THE PRESENT VALUE OF FUTURE CASH OUTFLOWS	2,678.6	–	3.3	–
ESTIMATES OF THE PRESENT VALUE OF FUTURE CASH INFLOWS	(2,945.3)	–	(2.9)	–
NON-FINANCIAL RISK ADJUSTMENT	9.2	–	(0.2)	–
CONTRACTUAL SERVICE MARGIN OR LOSS COMPONENT	257.6	–	(0.2)	–
AMOUNT INCLUDED IN INSURANCE CONTRACT LIABILITIES FOR THE YEAR	–	–	–	–

Figures in millions of euros

2022

EFFECT OF CONTRACTS RECOGNIZED IN THE YEAR - BBA	WRITTEN INSURANCE CONTRACTS		WRITTEN REINSURANCE CONTRACTS HELD
	NON ONEROUS	ONEROUS	NON ONEROUS	ONEROUS
ESTIMATES OF FUTURE CASH FLOWS, EXCLUDING ACQUISITION CASH FLOWS	1,145.1	–	3.0	–
ESTIMATES OF INSURANCE ACQUISITION CASH FLOWS	80.0	–	–	–
ESTIMATES OF THE PRESENT VALUE OF FUTURE CASH OUTFLOWS	1,225.1	–	3.0	–
ESTIMATES OF THE PRESENT VALUE OF FUTURE CASH INFLOWS	(1,524.6)	–	(2.7)	–
NON-FINANCIAL RISK ADJUSTMENT	20.4	–	(0.2)	–
CONTRACTUAL SERVICE MARGIN OR LOSS COMPONENT	279.1	–	(0.2)	–
AMOUNT INCLUDED IN INSURANCE CONTRACT LIABILITIES FOR THE YEAR	–	–	–	–

b. Variable fee approach - VFA

2023

EFFECT OF CONTRACTS RECOGNIZED IN THE YEAR - VFA	WRITTEN INSURANCE CONTRACTS
	NON ONEROUS	ONEROUS
ESTIMATES OF FUTURE CASH FLOWS, EXCLUDING ACQUISITION CASH FLOWS	844.7	–
ESTIMATES OF INSURANCE ACQUISITION CASH FLOWS	30.3	–
ESTIMATES OF THE PRESENT VALUE OF FUTURE CASH OUTFLOWS	875.0	–
ESTIMATES OF THE PRESENT VALUE OF FUTURE CASH INFLOWS	(916.5)	–
NON-FINANCIAL RISK ADJUSTMENT	5.4	–
CONTRACTUAL SERVICE MARGIN OR LOSS COMPONENT	36.1	–
AMOUNT INCLUDED IN INSURANCE CONTRACT LIABILITIES FOR THE YEAR	–	–

Figures in millions of euros

2022

EFFECT OF CONTRACTS RECOGNIZED IN THE YEAR - VFA	WRITTEN INSURANCE CONTRACTS
	NON ONEROUS	ONEROUS
ESTIMATES OF FUTURE CASH FLOWS, EXCLUDING ACQUISITION CASH FLOWS	972.0	–
ESTIMATES OF INSURANCE ACQUISITION CASH FLOWS	31.5	–
ESTIMATES OF THE PRESENT VALUE OF FUTURE CASH OUTFLOWS	1,003.5	–
ESTIMATES OF THE PRESENT VALUE OF FUTURE CASH INFLOWS	(1,036.0)	–
NON-FINANCIAL RISK ADJUSTMENT	5.0	–
CONTRACTUAL SERVICE MARGIN OR LOSS COMPONENT	27.6	–
AMOUNT INCLUDED IN INSURANCE CONTRACT LIABILITIES FOR THE YEAR	–	–
Figures in millions of euros

C) CONTRACTUAL SERVICE MARGIN (CSM)

The following chart provides information regarding the period of recognition of the contractual service margin for insurance contracts by approach:

2023

Item	2024	2025	2026	2027	2028	SUBSEQUENT	TOTAL
Building block approach - BBA	282.6	207.5	165.2	139.6	121.3	1,360.7	2,276.9
Variable fee approach - VFA	39.8	32.2	30.9	23.9	22.8	186.2	335.8
Contractual service margin for insurance contracts	322.4	239.7	196.1	163.5	144.1	1,546.9	2,612.7
Contractual service margin for ceded reinsurance contracts	(1.6)	(1.4)	(1.3)	(1.2)	(1.1)	(6.4)	(13.0)
Contractual service margin total	320.8	238.3	194.8	162.3	143.0	1,540.5	2,599.7
Figures in millions of euros

2022

Item	2023	2024	2025	2026	2027	SUBSEQUENT	TOTAL
Building block approach - BBA	289.4	166.7	133.7	114.4	101.0	1,162.0	1,967.2
Variable fee approach - VFA	36.0	34.8	30.3	30.5	22.6	191.1	345.3
Contractual service margin for insurance contracts	325.4	201.5	164.0	144.9	123.6	1,353.1	2,312.5
Contractual service margin for ceded reinsurance contracts	(1.2)	(1.1)	(1.0)	(0.9)	(0.8)	(3.6)	(8.6)
Contractual service margin total	324.2	200.4	163.0	144.0	122.8	1,349.5	2,303.9

Figures in millions of euros

81 Consolidated Annual Accounts 2023

D) ANALYSIS OF INSURANCE REVENUE

The following chart provides a breakdown of insurance revenue for the last two years.

INSURANCE REVENUE	2023	2022
1. Liability for remaining coverage release	24,579.4	22,543.7
1.1. Claims and other expected insurance service expense	1,099.1	1,024.7
1.2. Changes in risk adjustment	24.6	24.0
1.3. CSM release	354.6	273.6
1.4 Premium release (PAA)	23,101.1	21,221.4
2. Release of insurance acquisition cash flows allocated to the period	201.6	173.5
TOTAL INSURANCE REVENUE	24,781.0	22,717.2

E) INSURANCE FINANCE INCOME AND EXPENSES

The following chart provides a breakdown of insurance finance income and expenses for the last two years, and their relationship with return on investments:

ON INVESTMENTS	2023	2022
Interest income on financial instruments not at fair value through profit & loss	1,567.4	754.2
Other investment income	781.9	(321.4)
Net loss due to financial assets impairment	(15.8)	(5.3)
Effect of asset valuation changes recognized in OCI	953.3	(4,292.7)
Share in profits from equity-accounted companies	32.3	15.2
FINANCE RESULT NOT RELATED TO INSURANCE SERVICE	3,319.1	(3,850.0)
Changes in the fair value of the underlying assets of contracts with direct participation features	(890.8)	1,056.1
Group participation in the changes in the fair value of the underlying assets or fulfillment cash flows that do not adjust the contractual service margin	–	–
Interest unwinding	(810.3)	(188.2)
Interest accrued on the contractual service margin	(90.0)	(66.5)
Effect of changes in discount rates	(355.2)	2,361.1
Effect of measuring changes in estimates at current rates and adjusting the contractual service margin to initial recognition rates	62.2	(105.6)
Net exchange gains/losses	112.7	2.7
FINANCE RESULT FROM INSURANCE CONTRACTS	(1,971.4)	3,059.6
Interest expenses	166.9	112.6
Interest accrued on the contractual service margin	–	0.7
Effect of changes in discount rates	13.4	(30.7)

DETAIL OF INSURANCE FINANCE REVENUE/(EXPENSES) AND ITS RELATIONSHIP WITH RETURN

Net exchange gains/losses (78.7) –

Figures in million euros

Effect of changes in reinsurance counterparty credit risk	(6.2)	11.2
FINANCE RESULT FROM REINSURANCE CONTRACTS	95.4	93.8

FINANCE RESULT FROM REINSURANCE CONTRACTS	95.4	93.8
FINANCE RESULT FROM INSURANCE AND REINSURANCE CONTRACTS	(1,876.0)	3,153.4
Movements in financial liabilities	–	–
Movements in third-party interests in consolidated funds	–	–
TOTAL MOVEMENT	–	–
of which: through profit and loss	928.2	578.7
of which: through other comprehensive income	514.9	(1,275.3)

The range of yield curves used for the main products in Spain is as follows:

	Annuity products (BBA)		Burial products (BBA)		Direct participation products (VFA)
	2023	2022	2023	2022	2023	2022
1 year	4.0 %	3.8 %	4.6 %	3.8 %	3.8 %	3.8 %
5 years	3.0 %	3.7 %	3.6 %	3.8 %	2.8 %	3.7 %
10 years	3.1 %	3.7 %	3.6 %	3.8 %	2.9 %	3.7 %
15 years	3.1 %	3.6 %	3.7 %	3.7 %	3.0 %	3.6 %
20 years	3.1 %	3.4 %	3.6 %	3.4 %	2.9 %	3.4 %
30 years	3.2 %	3.3 %	3.8 %	3.4 %	3.0 %	3.3 %

F) EFFECT OF CONTRACTS MEASURED AT TRANSITION USING THE MODIFIED RETROSPECTIVE APPROACH OR THE FAIR VALUE APPROACH

Groups of insurance contracts in force at January 1, 2022 and to which transition to EU-IFRS 17 was applied were measured as indicated in Note 2.5.

The reconciliation of contractual service margin balances corresponding to groups of written insurance and reinsurance contracts that were in force at the date of transition to IFRS 17, i.e. January 1, 2022, and which were measured using the BBA and/or VFA is shown in the accompanying chart:

CONTRACTUAL SERVICE MARGIN RECONCILIATION	Groups of contracts measured at transition date applying fair value approach
	2023	2022
OPENING BALANCE OF CONTRACTUAL SERVICE MARGIN	1,380.8	–
Adjustments to opening balance	30.0	1,403.9
Changes in scope	–	67.8
Changes that relate to future services	48.1	29.5
Effects of contracts initially recognized in the period	–	–
Changes in estimates that adjust the contractual service margin	48.1	29.5
Changes that relate to current services	(138.1)	(162.9)
Contractual Service Margin recognized for services provided	(138.1)	(162.9)
TOTAL CHANGES IN OCI	(90.0)	(133.4)
Other movements (transfers, amendments, etc.)	30.7	42.4
CLOSING BALANCE OF CONTRACTUAL SERVICE MARGIN	1,351.5	1,380.8

Figures in millions of euros

The above chart does not include the contractual service margin for products in which the Group has used the exemption for the requirement to apply the annual cohort grouping indicated in Note 5.14 and which stood at 840.2 million euros to January 1, 2022.

The Group has not used the modified retrospective approach for the contractual service margin valuation at transition.

The amount of insurance revenue corresponding to groups of contracts that were in force at the date of transition to EU-IFRS 17, i.e. January 1, 2022, is shown in the accompanying chart:

INSURANCE REVENUE RECONCILIATION		Groups of contracts measured at transition date applying fair value approach
	2023	2022
Amounts related to changes in the liability for remaining coverage	447.0	202.7
Contractual Service Margin recognized for services provided	138.5	162.9
Changes in non-financial risk adjustment	6.2	0.8
Insurance service expenses incurred in the period	302.3	250.7
Amounts related to the recovery of insurance acquisition expenses	79.0	97.6
Allocation of premiums related to the recovery of insurance acquisition expenses	79.0	97.6
TOTAL INSURANCE REVENUE	526.0	512.0

Figures in millions of euros

The following is a breakdown of the reconciliation for the last two years of the opening and closing balance of the accrued amounts included in OCI for financial assets measured at fair value through OCI related to these groups of insurance contracts.

MOVEMENT RECONCILIATION IN OTHER COMPREHENSIVE INCOME	2023	2022
Opening balance	(591.6)	–
Adjustments to opening balance	(33.9)	–
Changes in scope	–	–
Net change in the fair value recognized as other comprehensive income in the year	24.4	(596.1)
Profit/Losses previously recognized in other comprehensive income, and reclassified to P&L for the year	10.0	–
Tax effect of the movements in the year	2.4	4.5
CLOSING BALANCE	(588.7)	(591.6)

G) OTHER INFORMATION

G.1.) Information related to Life and Non-Life insurance

The characteristics of the main Life insurance types sold by the Group's companies in 2023 and 2022 are listed in the accompanying chart.

• Spain

Format	Coverage	Biometric tables	Technical interest
MAPFRE VIDA
Single premium group insurance contracts, with and without profit sharing:
- Mod. 342. Group annuity	Longevity	PER2020 COL ORDEN 2	2.03%
- Mod. 308. Group Flexinvida with interest and premium reimbursement	Longevity / Death	PASEM2020_Rel_2	2.25%
- Mod. 438. Millón Vida	Longevity / Death	PASEM2020_NoRel_2	2.24%
- Mod. 534. Millón Vida	Longevity / Death	PASEM2020_NoRel_2	2.84%
BANKINTER SEGUROS DE VIDA
Single premium individual contracts without profit sharing - B629	Annuity insurance with counterinsurance	PERP20-IND-ORD2-MF	1.81%
Single premium individual contracts without profit sharing - Riesgo B664	Unit Linked-type insurance, without guaranteed interest rate	PASEM20-IND-ORD2-MF	—%
Single premium individual contracts without profit sharing - Riesgo B689	Life Protection insurance	PASEM2020_NoRel_1ord_M/F	—%
Individual Unit-Linked contracts where the policyholder bears the investment risk - B281	Life Protection insurance	PASEM20-IND-ORD2-MF	—%
Single or regular premium individual Unit-Linked contracts with profit sharing 3649	Guaranteed Savings insurance	PASEM20-IND-ORD2-MF	2.50%
Single or regular premium individual contracts with profit sharing 3678	Guaranteed Savings insurance	PASEM20-IND-ORD2-MF	0.30%

• Other countries

LIFE INSURANCE TECHNICAL CONDITIONS
Format	Coverage	Biometric tables	Technical interest
COMPANHIA DE SEGUROS ALIANÇA DO BRASIL
Ouro Vida Revisado / BB seguro vida completo / BB Seguro Vida Mulher Mais / BB Seguro Vida Estilo /Ouro Vida Grupo Especial	Death / Disability	AT-49	—
Ouro Vida 2000 / BB seguro Vida Mulher / Other individual Life products	Death / Disability	AT-83	—
Other group Life products	Death / Disability	AT-83	—
MAPFRE MSV LIFE
Without profit sharing	Death	44% AMC00	Variable
With profit sharing	Longevity / Death	50% AMC00	Variable
Unit-linked	Longevity / Death	50% AMC00	Variable
MAPFRE COLOMBIA VIDA
Pensiones Ley 100	Longevity / Death / Disability / Funeral Assistance	Male/Female annuitants mortality tables (RV08) - Colombian disability mortality table (MI85)	Variable
Disability and Longevity Annuity	Death / Disability / Temporary Disability / Funeral Assistance	Male/Female annuitants mortality tables (RV08) - Colombian disability mortality table (MI85)	Variable

6.13. PROVISIONS FOR RISKS AND EXPENSES

The following tables show the movements of provisions for risks and expenses in the last two years.

2023

		Adjustments		Inflows		Outflows
Item	Opening balance	to 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	251.4	13.2	—	2.6	16.5	(0.1)	(1.8)	281.8
Provision for payments of liquidation agreements	23.6	(0.2)	—	17.1	—	(18.8)	(0.3)	21.4
Provisions for restructuring	16.7	—	(3.8)	7.9	—	(6.7)	(1.2)	12.9
Other provisions for staff-related commitments	172.9	(0.7)	(0.1)	151.8	4.4	(142.9)	(6.9)	178.5
Other provisions	57.6	(7.9)	0.1	31.3	1.4	(10.6)	(14.1)	57.8
TOTAL	522.2	4.4	(3.8)	210.7	22.3	(179.1)	(24.3)	552.4

Figures in millions of euros

2022

		Adjustments		Inflows		Outflows
Item	Opening balance	to 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	218.5	26.3	—	2.5	10.4	(2.4)	(3.9)	251.4
Provision for payments of liquidation agreements	21.2	0.3	—	18.8	11.9	(28.3)	(0.3)	23.6
Provisions for restructuring	128.3	—	(0.6)	6.1	—	(117.1)	—	16.7
Other provisions for staff-related commitments	199.5	1.5	2.5	134.6	8.2	(171.8)	(1.6)	172.9
Other provisions	86.1	(3.9)	0.4	24.2	4.2	(35.6)	(17.8)	57.6
TOTAL	653.6	24.2	2.3	186.2	34.7	(355.2)	(23.6)	522.2

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 provisioned and the period in which the provisions will be settled 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.

Provision for tax to be paid

The heading "Provisions for tax to be paid" includes, at December 31, 2023 and 2022, tax liabilities amounting to 275.6 and 247.8 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 228.5 million euros (203.6 million euros at December 31, 2022) and the PIS (Social Integration Program) amounting to 37.1 million euros (32.97 million euros at December 31, 2022). These contingencies have arisen due to discrepancies in the interpretation by the Brazilian government and the business sector regarding the justification of applying said taxes to the companies' turnover.

From said discussion, the Group is currently involved in legal proceedings with the tax authorities in Brazil in connection with the enforceability of the aforementioned COFINS and PIS taxes, regarding non-operating and financial income, for the amounts of 218.6 and 176.1 million Brazilian reals at December 31, 2023 and 2022, respectively. Given the current uncertainty in case law regarding whether the PIS and COFINS calculation base should be extended to include non-operating and financial income, 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, both the Group and its advisors classify the risk of loss as possible.

Further, the current proceedings are currently ongoing in Brazil:

• Appeal contesting the 64 million euro liquidation, with regard to an inspection initiated by the tax administration against BRASILSEG COMPANHIA DE SEGUROS, relating to 2014 corporate taxes, questioning the exemption applied to revenue from Agricultural insurance operations.
• Appeal regarding the inspection initiated by the tax administration against BRASILVEÍCULOS COMPANHIA DE SEGUROS (absorbed in 2019 by MAPFRE SEGUROS GERAIS), relating to corporate tax corresponding to the years 2014 to 2016, questioning the deductibility of certain expenses and incentives for the sales network, as well as the amortization of the goodwill generated in a corporate restructuring prior to MAPFRE's agreement with Banco do Brasil.
• The owed taxes included in the inspection for said concepts reaches 94 million euros, which, if settled unfavorably would trigger the application of the compensation clause set out in the agreements signed with Banco do Brasil.

Both appeals were heard in the court of first instance - BRASILSEG unfavorable and BRASILVEÍCULOS partially favorable - and are awaiting sentencing in the second administrative level. Both the Group and its advisors classify the risk of loss as possible in both cases.

6.14. REVENUES AND EXPENSES FROM INVESTMENTS

The breakdown of revenues and expenses from investments for financial years 2023 and 2022 is shown in the accompanying chart:

Financial revenue not related to insurance service

Item	Financial income
	2023	2022
REVENUE FROM INTEREST, DIVIDENDS AND SIMILAR
Real estate investment
Rentals	37.4	51.0
Other	0.4	0.3
Rev. from Financial investments at amortized cost: fixed income	221.1	179.0
Rev. from Financial investments at amortized cost: Other inv.	4.9	5.0
Rev. from Financial investments at fair value through OCI	1,018.1	617.4
Rev. from Financial investments at fair value through profit & loss	387.0	196.3
Dividends form group companies	—	—
Other financial income	274.7	269.9
TOTAL REVENUE	1,943.6	1,318.9
REALIZED AND UNREALIZED GAINS
Net realized gains:
Real estate investment	60.1	101.3
Financial investments at fair value through OCI: fixed income	50.9	103.8
Financial investments at fair value through profit & loss	168.7	69.9
Other	103.2	13.1
Unrealized gains:
Increase in fair value through P&L	779.4	(33.4)
Other	19.9	6.2
TOTAL GAINS	1,182.2	260.9
TOTAL REVENUES FROM INVESTMENT	3,125.8	1,579.8

Figures in millions of euros

Dividends recognized during the year corresponding to equity classified at fair value through OCI amounts to 84.1 and 95.1 million euros in 2023 and 2022.

Financial expenses not related to insurance service

Item	Financial expenses
	2023	2022
FINANCIAL EXPENSES
Real estate investment
Direct operational expenses	0.6	22.1
Other expenses	23.4	37.7
Financial investments at amortized cost: fixed income	7.9	9.0
Financial investments at amortized cost: Other investments	1.3	1.6
Financial investment expenses at fair value through OCI	228.8	213.2
Financial investment expenses at fair value through profit & loss	31.3	119.6
Other financial expenses	154.4	149.3
TOTAL EXPENSES	447.7	552.5
REALIZED AND UNREALIZED LOSSES
Net realized losses
Real estate investment	2.6	6.3
Financial investments at fair value through OCI: fixed income	95.8	93.4
Financial investments at fair value through profit or loss: fixed income	75.6	193.4
Other	11.1	3.8
Unrealized losses
Decrease in fair value portfolio through profit and losses	138.8	293.6
Other	4.9	4.2
TOTAL LOSSES	328.8	594.7
TOTAL EXPENSES FROM INVESTMENT	776.5	1,147.2

Figures in millions of euros

The headings "Income and expenses from the portfolio at fair value through P&L" in the preceding tables include 6.9 million euros of net income from fixed income investments corresponding to financial assets obligatorily designated at fair value through P&L.

6.15. OPERATING EXPENSES

A breakdown of net operating expenses by purpose and nature, for the last two financial years, which have been considered for management purposes, is shown in the accompanying charts.

Operating expenses by purpose

Item	2023	2022
Claims-related expenses	794.4	789.6
Acquisition expenses	5,507.0	5,086.2
Administration expenses	846.2	831.8
Expenses from investments	793.8	1,344.8
Other technical expenses	149.4	132.7
Other non-technical expenses	141.9	172.4
Operating expenses from other activities	648.6	600.5
TOTAL	8,881.3	8,958.0

Figures in millions of euros

Operating expenses by nature

Item	2023	2022
Commissions and other portfolio expenses	4,457.4	4,100.9
Personnel expenses	1,749.1	1,696.4
External services
- Leasing (shops and buildings)	33.4	25.8
- Repairs and upkeep (shops and buildings)	71.9	77.2
- Leases and repairs (computer equipment)	33.4	36.5
- Leases and repairs (computer applications)	248.1	224.8
- Other services (computer applications)	224.9	239.2
- Supplies (communications)	42.7	39.8
- Advertising and marketing	97.3	118.7
- Public relations	35.5	33.5
- Independent professional services	244.8	244.1
- Other services	380.9	378.2
Taxes	228.1	193.1
Provision for amortization	348.3	318.4
Expenses recorded directly by purpose	685.5	1,231.4
TOTAL	8,881.3	8,958.0

Figures in millions of euros

6.16. FISCAL SITUATION

Fiscal consolidation regulations

• Tax on profits

Since financial year 1985, some of the consolidated companies with registered offices in Spain have been included for corporate tax purposes in Fiscal Group 9/85. This 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 2023 is provided in Annex 2 of this report.

• Value Added Tax

Since financial year 2010, and for the purposes of value added tax, some of the consolidated companies with registered offices in Spain have been included in the VAT Group 87/10. This Group comprises 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 2023 is provided in Annex 2 of this report.

Components of tax on profit expenses and reconciliation of the accounting profit with the tax expenses 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, 2023 and 2022 are shown below. The Group has reconciled the amounts by aggregating reconciliations made separately using the national rates of each country.

	Amount
Item	2023	2022
Tax expense
Result before taxes from ongoing operations	1,647.7	1,397.6
25 percent of result before taxes from ongoing operations	411.9	317.4
Tax effect of the permanent differences	(134.0)	(50.6)
Tax incentive for the financial year	(29.4)	(19.3)
Tax effect of tax rates other than 25 percent	156.7	65.4
Total expense from current tax originating in the financial year	405.2	312.9
Expense from current tax originating in previous years	(24.1)	(16.7)
Receivables from negative taxable income not recognized from previous periods, deductions pending application or temporary differences	—	—
TOTAL TAX EXPENSES OF ONGOING OPERATIONS	381.1	296.2
Tax on profits to be paid
Withholdings and advance payments	(420.6)	(370.9)
Temporary differences and currency conversion differences	2.1	(8.1)
Tax receivables and incentives applied, registered in previous years	(26.8)	(27.5)
Tax on earnings for discontinued operations	—	—
TOTAL TAX ON PROFITS TO BE PAID (RECEIVABLE) ORIGINATING IN THE YEAR	(64.2)	(110.3)
Tax on profits receivable from previous financial years	(111.3)	(43.1)
NET TOTAL TAX ON PROFITS TO BE PAID (RECEIVABLE)	(175.5)	(153.4)

Figures in millions of euros

Deferred tax assets and liabilities

At December 31, 2023 and 2022 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, which currently stand as follows:

Item	2023	2022
Deferred tax assets	397.3	591.4
Deferred tax liabilities	(236.0)	(324.8)
Asset (Liability) net	161.3	266.6

Figures in millions of euros

In addition to the deferred tax assets recorded in 2023 and 2022, shown in the above table, there are other deferred tax assets deriving from tax loss carryforwards pending offset, amounting to 22.4 and 27.1 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 2023 and 2022, with a breakdown of the amounts related to items directly debited or credited to equity accounts in each financial year.

2023

Item	Opening	Adjustments to the	Changes to the	From		Settled	Closing balance
	balance	opening balance	scope	Results	Equity
1. Financial investment valuation differences	254.2	(53.0)	0.1	2.4	(231.5)	–	(27.8)
2. Tax credits for tax loss carryforwards	251.0	9.6	–	74.3	–	(13.2)	321.7
3. Credits for tax incentives	6.0	7.5	–	29.4	–	(41.7)	1.2
4. Pension complements and other employee benefit commitments	67.5	(0.3)	–	7.2	–	–	74.4
5. Provision for responsibilities and other	45.8	1.9	–	65.5	–	(36.5)	76.7
6. Tax credits from PIS and COFINS	19.4	0.7	–	(0.2)	–	–	19.9
7. Portfolio acquisition and other acquisition expenses	(186.3)	(14.8)	–	13.2	–	2.2	(185.7)
8. Other profits and losses	(15.7)	0.4	–	(3.7)	–	0.9	(18.1)
9. EU-IFRS 16 application	8.2	0.4	–	(7.5)	–	–	1.1
10. Insurance and reinsurance contracts	(194.8)	(21.2)	–	11.9	25.7	83.8	(94.6)
11. Other items	11.3	31.7	0.1	13.2	–	(63.8)	(7.5)
TOTAL	266.6	(37.1)	0.2	205.7	(205.8)	(68.3)	161.3

Figures in millions of euros

2022

Item	Opening	Adjustments to the	Changes to the	From			Closing
	balance	opening balance	scope	Results	Equity	Settled	balance
1. Financial investment valuation differences	(900.7)	119.1	22.6	20.4	992.7	0.1	254.2
2. Tax credits for tax loss carryforwards	217.5	16.1	–	33.5	–	(16.1)	251.0
3. Credits for tax incentives	9.9	1.5	–	19.2	–	(24.6)	6.0
4. Pension complements and other employee benefit commitments	54.1	–	1.1	44.8	–	(32.5)	67.5
5. Provision for responsibilities and other	74.3	3.8	1.2	75.4	–	(108.9)	45.8
6. Tax credits from PIS and COFINS	19.7	2.6	–	(2.9)	–	–	19.4
7. Portfolio acquisition and other acquisition expenses	(217.6)	5.0	7.2	12.1	–	7.0	(186.3)
8. Other profits and losses	(12.3)	(18.0)	–	(3.8)	–	18.4	(15.7)
9. EU-IFRS 16 application	6.7	2.8	–	(1.3)	–	–	8.2
10. Insurance and reinsurance contracts	527.5	625.4	(14.8)	(66.5)	(1,225.4)	(41.0)	(194.8)
11. Other items	(26.1)	(2.4)	0.6	62.4	–	(23.2)	11.3
TOTAL	(247.0)	755.9	17.9	193.3	(232.7)	(220.8)	266.6

Figures in millions of euros

At the close of 2023, deferred tax assets and liabilities maturing in less than 12 months amounted to 52.5 and 39.7 million euros, respectively (57.8 and 45.1 million euros, respectively, in 2022).

Tax loss carryforwards

The tax loss carryforwards pending offset in fully consolidated companies at the close of the last two periods is shown in the accompanying chart:

		Tax loss carryforwards			Deferred tax assets
Year generated	Applied in the financial year		Pending application		Amount recognized		Amount not recognized
	2023	2022	2023	2022	2023	2022	2023	2022
2015 and previous	12.9	4.3	209.8	214.4	66.1	67.9	9.2	10.8
2016	1.4	—	128.2	125.9	39.6	38.2	1.2	1.2
2017	3.3	12.4	17.4	20.4	3.3	3.3	1.1	2.1
2018	3.7	31.9	121.7	119.5	45.5	43.3	2.0	3.0
2019	5.0	6.2	47.1	52.1	8.0	8.9	1.5	1.9
2020	8.3	2.0	53.2	53.8	8.2	8.2	2.5	2.9
2021	7.0	13.4	168.2	173.0	47.4	47.7	1.8	3.6
2022	5.0	—	124.2	117.6	35.5	33.5	1.3	1.6
2023	5.1	—	274.1	—	68.0	—	1.8	—
Total	51.7	70.2	1,143.9	876.7	321.6	251.0	22.4	27.1

Figures in millions of euros

Assets recognized in relation to deferred taxes on tax loss carryforwards 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 they may be offset.

Tax incentives

The tax incentives of the companies consolidated by global integration for 2023 and 2022 are as follows:

Module		Amount applied in the financial year	Amount pending application			Amount not recorded
	2023	2022	2023	2022	2023	2022
Double taxation deduction	7.8	10.6	0.6	0.1	—	—
Job creation	—	—	—	—	—	—
Other	33.9	14.0	0.5	13.5	—	—
Total	41.7	24.6	1.1	13.6	—	—

Figures in millions of euros

The consolidated tax group no. 9/85 made use in previous years of the reduction from 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 five-year period. At December 2021, allowances to the capitalization reserve for previous years became considered to be available reserves as the five year period since their establishment had passed or because they no longer had associated tax benefits, as such there was no capitalization reserve recorded at that date.

Verification by tax authorities

As a result of the inspection activity carried out in Fiscal Group 9/85, affecting MAPFRE S.A. as the controlling company and MAPFRE ESPAÑA, MAPFRE VIDA, MAPFRE INTERNACIONAL, MAPFRE RE, MAPFRE ASISTENCIA, MAPFRE GLOBAL RISKS and other companies controlled by the Group, dissents were signed regarding the Corporate Income Tax pertaining to the period 2013 to 2016, referring primarily to the deductibility of certain personnel expenses, of the technical provision for claims and stabilization reserve, the deduction for technological innovation expenses and the repercussions for subsidiaries of canons from the use of the MAPFRE brand.

The settlements associated with these acts have been contested before the Contentious-Administrative Chamber of the Spanish High Court, which grouped appeals, sentencing one single decision rejecting the appeal, and a contentiousadministrative appeal has been filed before the National Court of Spain in response, which appeal has been formalized.

With regard to the inspection activity pertaining to the Value Added Tax (VAT) for the years 2014-2016, a dissent was signed related to the impact of canons for the use of the MAPFRE brand. The settlement from this dissent is currently in the process of being appealed before the National Court of Spain, and a written statement of conclusions has been filed, to date.

In reference to the settlements from the above dissents, MAPFRE considers, based on the criteria of its fiscal advisors, that there are solid defense arguments in the legal proceedings, and therefore did not make specific provisions for this concept.

In 2022, MAPFRE S.A., as controlling company of Fiscal Group number 9/85, and with the aim of limiting the financial costs of the stay on the notices resulting from inspection activity regarding the years 2013 to 2016, proceeded to pay the tax liability related from the dissents for the Corporate tax for 2013 to 2015, along with the suspended interest. As long as there are solid defense arguments in the administrative and legal proceedings, the Group companies affected by the aforementioned notices recorded in accounting as an asset (either as a deferred tax asset, for temporary differences, or as tax credits from Spanish Tax Office for all other items) the amount of 110.0 million euros.

Additionally, in 2022, Fiscal Group number 9/85 urged the importance of the rectification of its Corporate tax for the years 2017 to 2019 in relation to the recovery of certain adjustments coming from the notices for the years 2013 to 216, and requested the recognition of eliminating the double taxation on certain equity investments that at Group level were considered qualifying holdings, requesting the recognition of a 61.0-million euro return that is recorded as a tax credit from Spanish Tax Office in accounting in the Group Companies affected by said rectification.

Regarding the deduction for technological innovation (TI) expenses, the Spanish Supreme Court has accepted appeals against four sentences from the National Court of Spain which, in contradiction with its own jurisprudence on the matter, accepted the arguments of the Tax Inspection Bureau to defend its authority to limit the scope of the deduction, and the consideration that the software is not a concept included in the deduction for TI expenses set out in the Corporate Tax law. Specifically, the Spanish Supreme Court will make a statement regarding the validity of the reports prepared by the Tax Authority to rectify the deduction for TI, and its capacity to contradict the binding reports issued by the Ministry of Science of Technology, under which taxpayers have been applying the deduction, as there are wellfounded reasons to expect that the criteria used by the MAPFRE Fiscal group will be validated by the Supreme Court, revoking the abovementioned sentences from the National Court. The Fiscal Group has presented appeals against the inspection activity initiated regarding, among other concepts, the rectification of this deduction, the amount of which reaches 11.0 million euros (2013-2016). Additionally, the deduction applied in 2017-2022 was 48.2 million euros, and in 2023 5.9 million euros was generated.

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 term of the statute of limitations has passed (four years for Spanish companies).

At December 31, 2023 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.

On January 18, 2024, the Constitutional Court of Spain (TC, in Spanish) handed down a ruling declaring the unconstitutionality of certain measures that were introduced in the Corporate Tax law by Royal Decree-Law 3/2016 of December 2 (RDL 3/2016), as it considers the regulatory vehicle used for its approval to be inadequate.

Of the measures declared unconstitutional, Fiscal Group 9/85 is only affected by the obligation to integrate into its taxable income, in fifths, starting in 2016, the impairments of controlled companies that would have been tax deductible until 2012. The nullity of the aforementioned measure, once declared unconstitutional, will initially have a favorable impact of 19 million euros on the Group. This will be recovered from the Public Treasury, although the amount is not yet final, as the impact the regulation in force prior to the approval of RDL 3/2016 could have on the recovery of impairments in controlled companies from 2021 to 2023 is pending quantification.

Regarding the non-deductibility of losses on transfer of controlled companies, also approved in the same RDL 3/2016, and which also affects the Fiscal Group, the TC has postponed its decision until it has to make a statement related to the appeal made as a result of the specific application of this measure. This future sentence will have a favorable impact for the Fiscal Group, the amount of which is pending quantification.

The regulations related to the OECD's minimal overall tax rate (Pillar 2) was approved or substantially approved in certain jurisdictions in which the Group operates. As its entry into force takes place in 2024, the Group has performed a preliminary assessment of exposure to Pillar 2 taxes that arise as a result of this legislation, concluding that the effective tax rate in all countries in which MAPFRE Group operates is above 15 percent, although two jurisdictions were detected - Peru and Paraguay - in which said percent is not reached. However, and beyond the increase in administrative work the the application of this new standard implies, its entry into force is not expected to have a significant economic impact for the Group.

6.17. REMUNERATION FOR EMPLOYEES AND ASSOCIATED LIABILITIES

Personnel expenses

The personnel expenses breakdown for the last two years is shown in the accompanying table:

Item		Amount
	2023	2022
Short-term remuneration
Wages and salaries	1,258.9	1,229.4
Social security	266.9	253.8
Other remuneration	136.0	150.1
Post-employment benefits	47.2	49.7
Other long-term remuneration	2.8	(4.6)
Termination payments	36.5	14.3
Share-based payments	0.7	3.7
TOTAL	1,749.0	1,696.4

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, and 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 38.1 and 38.9 million euros at December 31, 2023 and 2022, 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 "Insurance contract liabilities".

There are also obligations relating to pension commitments, externalized through an insurance policy underwritten with MAPFRE ESPAÑA, amounting to 13.8 million euros at December 31, 2023 (13.1 million euros in 2022).

The main actuarial assumptions used at the close of the last two years have been the PERM/F-2020 longevity tables, annuities linked to the previous year's CPI in both years (3 percent revaluation guaranteed in the policy), 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.

Other post-employment benefits

In 2023 and 2022, the personnel expenses correspond to Life insurance covering death between ages 65 and 77, amounting to 0.6 and 1.0 million euros, respectively. Said provision was calculated in 2023 and 2022 using the PASEM-2020 mortality tables.

Average number of employees:

2023

Other medium-term remuneration and sharebased payments

On February 9, 2022, the Board of Directors of MAPFRE S.A. approved a new long-term incentive plan described in valuation method 5.18. The amount provisioned in the year for this Plan reached 5.46 million euros.

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.

Segment		Board of Directors and Executive Management		Senior Management	Advisors		Associates		Total
	Men	Women	Men	Women	Men	Women	Men	Women	Men	Women
IBERIA	7	—	1,230	781	2,590	2,796	890	1,862	4,717	5,439
MEXICO	1	—	215	213	382	342	91	147	689	702
LATAM SOUTH CENTRAL	12	5	638	590	1,325	1,486	709	1,075	2,684	3,156
BRAZIL	3	—	457	328	927	1,655	456	1,007	1,843	2,990
NORTH AMERICA	3	—	332	279	490	803	160	553	985	1,635
EMEA	5	—	261	233	373	539	170	192	809	964
ASISTENCIA - MAWDY	—	1	260	198	270	318	558	918	1,088	1,435
GLOBAL RISKS	1	—	35	28	49	80	1	6	86	114
REINSURANCE	2	—	89	49	127	171	5	19	223	239
CORPORATE AREAS	17	5	394	198	224	211	11	62	646	476
Average total number of employees	51	11	3,911	2,897	6,757	8,401	3,051	5,841	13,770	17,150

2022

Segment		Board of Directors and Executive Management		Senior Management		Advisors		Associates		Total
	Men	Women	Men	Women	Men	Women	Men	Women	Men	Women
IBERIA	8	—	1,188	712	2,761	2,812	947	1,965	4,904	5,489
MEXICO	1	—	199	186	396	356	93	162	689	704
LATAM SOUTH CENTRAL	13	4	607	557	1,318	1,476	745	1,097	2,683	3,134
BRAZIL	3	—	422	306	946	1,703	464	1,070	1,835	3,079
NORTH AMERICA	4	—	287	275	564	875	146	540	1,001	1,690
EMEA	6	1	273	238	583	727	264	426	1,126	1,392
ASISTENCIA - MAWDY	—	1	298	199	285	313	631	1,001	1,214	1,514
GLOBAL RISKS	1	—	33	26	46	76	2	8	82	110
REINSURANCE	2	—	85	52	125	156	6	24	218	232
CORPORATE AREAS	17	5	297	148	295	253	10	66	619	472
Average total number of employees	55	11	3,689	2,699	7,319	8,747	3,308	6,359	14,371	17,816

Number of employees at the end of the year:

2023

Segment		Board of Directors and Executive Management	Senior Management		Advisors		Associates		Total
	Men	Women	Men	Women	Men	Women	Men	Women	Men	Women
IBERIA	7	—	1,208	777	2,585	2,808	898	1,864	4,698	5,449
MEXICO	1	—	205	210	389	356	82	141	677	707
LATAM SOUTH CENTRAL	12	5	647	620	1,292	1,424	744	1,131	2,695	3,180
BRAZIL	3	—	452	322	944	1,645	438	957	1,837	2,924
NORTH AMERICA	3	—	345	278	498	828	131	491	977	1,597
EMEA	5	—	242	205	401	566	157	179	805	950
ASISTENCIA - MAWDY	1	1	262	208	277	323	562	929	1,102	1,461
GLOBAL RISKS	1	—	35	29	49	79	1	6	86	114
REINSURANCE	2	—	91	53	131	169	3	19	227	241
CORPORATE AREAS	19	5	417	213	214	206	10	62	660	486
Total number of employees	54	11	3,904	2,915	6,780	8,404	3,026	5,779	13,764	17,109

2022

Segment		Board of Directors and Executive Management	Senior Management		Advisors		Associates		Total
	Men	Women	Men	Women	Men	Women	Men	Women	Men	Women
IBERIA	8	—	1,202	740	2,772	2,831	926	1,927	4,908	5,498
MEXICO	1	—	218	204	368	339	89	154	676	697
LATAM SOUTH CENTRAL	13	3	621	574	1,333	1,501	686	1,069	2,653	3,147
BRAZIL	3	—	451	321	918	1,675	472	1,055	1,844	3,051
NORTH AMERICA	3	—	336	299	511	821	135	555	985	1,675
EMEA	5	—	232	197	400	582	191	212	828	991
ASISTENCIA - MAWDY	—	1	265	182	266	308	592	967	1,123	1,458
GLOBAL RISKS	1	—	33	27	48	79	1	7	83	113
REINSURANCE	2	—	86	52	126	165	5	21	219	238
CORPORATE AREAS	17	5	316	156	289	249	10	64	632	474
Total number of employees	53	9	3,760	2,752	7,031	8,550	3,107	6,031	13,951	17,342

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:

		2022	2021
Item	Year end close	Average	Year end close	Average
Senior Management	29	29	27	28
Advisors	105	109	106	99
Associates	91	91	91	96
Total	225	229	224	223

97 Consolidated Annual Accounts 2023

6.18. EARNINGS ON FOREIGN EXCHANGE DIFFERENCES

Positive foreign exchange differences other than those arising from financial instruments measured at fair value, allocated to the consolidated income statement, amounted to 1.5 and 1.7 billion euros in 2023 and 2022, respectively.

Negative foreign exchange differences other than those arising from financial instruments measured at fair value, allocated to the consolidated income statement, amounted to 1.5 and 1.7 billion euros in 2023 and 2022, respectively.

The reconciliation of the currency conversion differences recognized in equity at the beginning and end of the year in 2023 and 2022 is shown in the accompanying table.

	Amount
Description	2023	2022
Balance at the beginning of the period	(1,418.3)	(1,776.3)
Net foreign exchange differences on valuation of non-monetary items	—	1.5
Net foreign exchange differences on conversion of financial statements	64.4	356.5
Balance at the end of the period	(1,353.9)	(1,418.3)

Figures in millions of euros

At December 31, 2023 and 2022 the net foreign exchange differences arising from the translation into euros of the financial statements of the Group companies whose functional currency is:

		Currency conversion differences
Company/Subgroup	Geographic Area	Gains			Losses	Net
		2023	2022	2023	2022	2023	2022
MAPFRE RE	Europe, America and rest of world	13.3	26.3	(30.6)	(40.7)	(17.3)	(14.4)
MAPFRE INTERNACIONAL	Europe, America and rest of world	557.4	605.3	(1,795.9)	(1,925.8)	(1,238.5)	(1,320.5)
OTHER	—	21.7	22.1	(119.8)	(105.5)	(98.1)	(83.4)
TOTAL		592.4	653.7	(1,946.3)	(2,072.0)	(1,353.9)	(1,418.3)

Figures in millions of euros

6.19. CONTINGENT ASSETS AND LIABILITIES

At the end of 2023 and 2022, 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.

6.20. BUSINESS COMBINATIONS

In 2023 and 2022, there were no relevant business combinations.

6.21. 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 in the following paragraphs.

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 in the accompanying chart:

Item	2023	2022
Received/provided services and other expenses/revenue	557.6	614.8
Expenses/revenue from real estate investment	24.7	25.3
Expenses/revenues from investments and financial accounts	15.8	19.5
Dividends distributed	1,699.8	1,820.4
TOTAL	2,297.9	2,480.0

Figures in millions of euros

Insurance and reinsurance operations

Reinsurance and insurance activities conducted between Group companies, which have been eliminated in the consolidation process, are shown in the accompanying chart:

Item	2023	2022
INSURANCE REVENUE	3,476.3	3,162.6
CLAIMS	2,012.0	1,693.1
ACQUISITION EXPENSES	583.7	561.1
OTHER INSURANCE REVENUE/ (EXPENSE)	171.0	143.5

Figures in millions of euros

The following table shows the balances for insurance and reinsurance operations with Group companies, all of which have been eliminated in the consolidation process:

Item	2023	2022
REINSURANCE CONTRACT ASSETS	3,602.4	3,283.6
INSURANCE CONTRACT LIABILITIES	3,673.7	3,349.3
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 noncontrolling interests:

	Dividends distributed					Earnings attributable to
Controlled company	Controlling company		Non-controlling company		non-controlling interests
	2023	2022	2023	2022	2023	2022
MAPFRE RE COMPAÑÍA DE REASEGUROS, S.A.	86.5	24.1	5.2	1.6	14.4	12.4
BANKINTER SEGUROS DE VIDA, S.A.	27.1	33.3	27.1	33.3	30.8	27.6

Figures in millions of euros

The key figures for relevant controlled companies with non controlling interests and significant joint arrangements related to insurance activities are shown in the accompanying chart:

		Total assets		Equity	Results
Entity	2023	2022	2023	2022	2023	2022
Controlled company
MAPFRE RE COMPAÑÍA DE REASEGUROS, S.A.	9,321.6	9,103.6	2,009.2	1,813.3	248.3	146.8
BANKINTER SEGUROS DE VIDA, S.A.	1,853.1	1,876.9	130.3	124.6	61.5	55.1
SANTANDER MAPFRE SEGUROS Y REASEGUROS (HOLDING)	134.8	107.8	74.1	60.9	(4.8)	(1.3)
BANKINTER SEGUROS GENERALES, S.A.	28.6	25.6	11.2	11.6	0.6	1.3
Subtotal controlled companies	34,041.5	31,817.7	5,368.2	4,964.2	662.8	394.3
Joint Arrangement
SOLUNION SEGUROS DE CREDITO S.A.	591.7	487.3	152.7	132.6	12.8	12.4
Subtotal Joint Arrangements	591.7	487.3	152.7	132.6	12.8	12.4

Figures in millions of euros

Of the most relevant companies, a breakdown of information on M.S.V. LIFE P.L.C., COMPANHIA DE SEGUROS ALIANÇA DO BRASIL, S.A., and BB MAPFRE PARTICIPAÇOES, S.A. is not provided, as their data has not been made public at the date of presentation of MAPFRE S.A.'s annual accounts.

The cost and fair value of the shareholding in the SOLUNION joint venture at the close of the year were 75.9 and 88.6 million euros, respectively (75.9 and 77.9 million euros respectively in 2022). The following table contains the supplementary information for the joint ventures related to insurance business:

Information relating to joint arrangements and associated undertakings

In 2023 and 2022 MAPFRE Group did not receive any dividends from SOLUNION.

Joint Arrangement	equivalents	Cash and cash	Financial liabilities		Revenue		Expenses		Expenses or income after tax on profit
	2023	2022	2023	2022	2023	2022	2023	2022	2023	2022
SOLUNION SEGUROS DE CREDITO S.A.	20.3	5.1	4.7	0.2	4.9	3.9	1.7	2.4	(3.9)	(4.4)
TOTAL	20.3	5.1	4.7	0.2	4.9	3.9	1.7	2.4	(3.9)	(4.4)

Figures in millions of euros

Remuneration of key management personnel

• Board of Directors and other steering Committees

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	2023	2022
Short-term remuneration
Salary	3.0	2.3
Short-term variable remuneration	2.4	1.7
Fixed allowance	2.8	2.9
Travel allowance	—	0.1
Other items	0.3	0.2
Medium-term variable remuneration	—	—
TOTAL REMUNERATION	8.5	7.2
Other remuneration
Life insurance	0.1	0.1
Figures in million euros

The basic remuneration for external directors consists of an annual fixed amount for membership to the Board of Directors, which was 110,000 euros the past two years. In the last two years, the Vice-Chairman-Coordinating Director had a fixed annual allowance of 220,000 euros. The members of the Steering Committee received 10,000 euros, and also had a travel, subsistence and accommodation allowance of 3,000 euros for the last two years. The Chair of the Audit and Compliance Committee received remuneration of 70,000 euros in 2023 and 2022, and the remuneration for members of the Audit and Compliance Committee reached 49,000 euros in 2023 and 2022. The chair of a Steering Committee received remuneration of 62,000 euros in 2023 and 2022, and members of other sub-steering committees received 40,000 euros in 2023 and 2022. The Chair of the Risks and Sustainability Committee received 65,000 euros in 2023 and 62,000 euros in 2022, and members of this committee received 45,000 euros in 2023 and 40,000 euros in 2022.

Members of the Boards of Directors of Spanish insurance companies receive a fixed allowance of 50,000 euros in 2023 and 48,000 euros in 2022. The external vice-chairmen of the Boards of Directors of Spanish companies received 59,000 euros in 2023 and 2022. Members of Steering Committees received 11,000 euros in 2023 and 2022.

Life insurance is also established in case of death, with an insured capital of 400,000 euros, as well as some of the staff benefits like medical insurance. In 2022, insured capital amounted to 150,253 euros.

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 commitments in the case of retirement, permanent disability or death, externalized through life insurance policies, all of which are included in the Remuneration Policy for Directors. Contributions to defined benefit plans (including employee pension plans) amounted to 2.9 million euros in 2023 (3.3 million in 2022), and were recognized as expenses for the year, with the accumulated rights reaching 39.5 and 34.0 million euros at December 31, 2023 and 2022, respectively.

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

Regarding variable short-term remuneration accrued in the current and previous years, in 2023 3.8 million euros are pending payment (3.2 million euros in 2022).

On February 9, 2022, the Board of Directors of MAPFRE S.A. approved, as proposed by the Appointments and Remuneration Committee, an extraordinary annual bonus aimed at a key group in the Company, linked to the Auto Combined Ratio as well as the percentage of earned Premium Growth and the variation in incurred expenses (excluding Life Savings). The accrued amount for this additional short-term component for members of the Board of Directors reached 0.09 million euros in 2023 (0.08 million in 2022.

Additionally, regarding incentive plans, on February 9, 2022, the Board of Directors of MAPFRE S.A. approved, as proposed by the Appointments and Remuneration Committee, a medium- and long-term incentive plan for the 2022-2026 period, comprising three overlapping cycles with a three-year target measurement period per cycle, aimed at Management and key professionals of the Company and Group companies. In 2022, the first overlapping cycle (2022-2024) was approved, with the second overlapping cycle (2023-2025) being approved by the Board of Directors on February 8, 2023, as recommended by the Appointments and Remuneration Committee. The total amount provisioned for 2023 and corresponding to i) a third of the first overlapping cycle (2022-2024), plus ii) a third of the second overlapping cycle (2023-2025), and iii) the rectification for the changes in value of the MAPFRE S.A. share, reached a total of 0.86 million euros in cash and equity instruments (0.42 million euros in 2022 for the first overlapping cycle 2022-2024).

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 company's 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 above mentioned committee.

• Senior Management

Remuneration paid in the last two years is as follows:

	Amount
Item	2023	2022
No. of senior management members	7	8
Fixed remuneration	2.2	2.4
Variable remuneration	1.4	1.4
Other concepts	0.3	0.3
TOTAL REMUNERATION	3.9	4.1
Life insurance	0.04	0.04

Figures in million euros

Regarding short-term variable remuneration accrued in the current and previous years, at the close of 2023, 2.1 million euros are pending payment (2.2 million euros in 2022).

Contributions to defined benefit plans (including employee pension plans) amounted to 2 million euros in 2023 (2.2 million in 2022), and were recognized as expenses for the year, with the accumulated rights reaching 14.3 and 13.8 million euros at December 31, 2023 and 2022, respectively.

In 2022, the Board of Directors of MAPFRE S.A. approved, as proposed by the Appointments and Remuneration Committee. an extraordinary annual bonus aimed at a key group in the Company, linked to the Auto Combined Ratio as well as the percentage of earned Premium Growth and the variation in incurred expenses (excluding Life Savings). The accrued amount for this additional short-term component for members of Senior Management reached 0.08 million euros in 2023 (0.8 million in 2022.

Additionally, regarding incentive plans, on February 9, 2022, the Board of Directors of MAPFRE S.A. approved, as proposed by the Appointments and Remuneration Committee, a medium- and long-term incentive plan for the 2022-2026 period, comprising three overlapping cycles with a three-year target measurement period per cycle, aimed at Management and key professionals of the Company and Group companies. In 2022, the first overlapping cycle (2022-2024) was approved, with the second overlapping cycle (2023-2025) being approved by the Board of Directors on February 8, 2023,, as recommended by the Appointments and Remuneration Committee. The total amount provisioned for 2023 and corresponding to i) a third of the first overlapping cycle (2022-2024), plus ii) a third of the second overlapping cycle (2023-2025), and iii) the rectification for the changes in value of the MAPFRE S.A. share, reached a total of 0.71 million euros in cash and equity instruments (0.46 million euros in 2022 for the first overlapping cycle 2022-2024).

6.22. EVENTS SUBSEQUENT TO CLOSING

There are no relevant events subsequent to closing.

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 applicable to risk taking, 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 for managing and controlling key risks. 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:

• a. They establish general guidelines, basic principles and a general framework of action for the type of risk, ensuring coherent application within the Group.
• b. Assign responsibilities and define strategies, processes and procedures regarding the information needed to identify, measure, monitor, manage and notify about the risks referred to.
• c. Establish reporting chains of command and communication responsibilities of the risk supervisor.

Risk management is a local responsibility. 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. Respecting the action framework established by the Group, the companies are autonomous and responsible for structuring their own Risk management system in line with the applicable legislation and the complexity of their risk profile.

The Governing Bodies receive information 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 generally established prospectively based on budget estimates 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 instruments and 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

The Group has a high degree of insurance risk diversification as it operates in virtually all lines in Spain and has a wide presence in international markets.

The Group applies a system of procedures and limits that allows it to control the level of insurance risk concentration. The aim of these limits is to avoid exposure to a risk or a combination or inter-related risks that could expose the Group or one of its companies to an unsustainable loss of solvency. These limits establish the maximum amount, in terms of loss of earnings or shareholders' equity, for any risk, that the Group is willing to accept.

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.

1. Claims development

The development of real claims compared with what was previously estimated, for Non-Life direct insurance claims from the year of occurrence until the close of 2023 and 2022 is provided below:

Year of		Year of	Changes in claim costs in the years after year of occurrence
occurrence of claims	Item	occurrence	1 year later	2 years later	3 years later	4 years later
	Pending provision	3,017.4	1,235.4	730.9	491.7	326.8
2019	Cumulative payments	5,345.6	7,097.7	7,772.7	8,100.7	8,234.1
	TOTAL COST	8,363.0	8,333.1	8,503.5	8,592.4	8,560.9
	Pending provision	2,759.3	1,396.3	672.2	500.9
2020	Cumulative payments	4,783.3	6,419.4	7,154.1	7,381.0
	TOTAL COST	7,542.6	7,815.6	7,826.3	7,881.8
	Pending provision	2,766.7	1,375.1	678.4
2021	Cumulative payments	5,255.9	7,752.4	8,349.2
	TOTAL COST	8,022.6	9,127.5	9,027.6
	Pending provision	3,509.4	1,462.5
2022	Cumulative payments	5,762.1	8,359.7
	TOTAL COST	9,271.5	9,822.2
2023	Pending provision	4,136.6
	Cumulative payments	5,958.1
	TOTAL COST	10,094.7

Figures in millions of euros

2022

Year of occurrence			Changes in claim costs in the years after year of occurrence
of claims	Item	Year of occurrence	1 year later	2 years later	3 years later
	Pending provision	3,017.4	1,235.4	730.9	491.7
2019	Cumulative payments	5,345.6	7,097.7	7,772.7	8,100.7
	TOTAL COST	8,363.0	8,333.1	8,503.5	8,592.4
	Pending provision	2,759.3	1,396.3	672.2
2020	Cumulative payments	4,783.3	6,419.4	7,154.1
	TOTAL COST	7,542.6	7,815.6	7,826.3
	Pending provision	2,766.7	1,375.1
2021	Cumulative payments	5,255.9	7,752.4
	TOTAL COST	8,022.6	9,127.5
	Pending provision	3,509.4
2022	Cumulative payments	5,762.1
	TOTAL COST	9,271.5

2. Amount of insurance revenue by product and segment

The following tables provide a breakdown of insurance and reinsurance revenue by product and segment for the last two years:

2023

Product	IBERIA	BRAZIL	MEXICO	LATAM SOUTH CENTRAL	NORTH AMERICA	EMEA	ASISTENC IA-MAWDY	GLOBAL RISKS	REINSURA NCE	CORPORAT E AREAS AND CONSOLID ATION ADJUSTME NTS	Total
Life	1,057.4	1,375.8	264.6	633.3	1.7	52.5	—	—	—	—	3,385.3
Automobile	2,541.5	632.8	178.8	591.9	1,514.5	978.2	19.5	—	—	—	6,457.2
Homeowners and commercial risks	1,225.7	508.7	20.7	332.8	944.6	121.7	—	—	—	—	3,154.2
Health	786.1	—	236.0	531.1	44.0	124.6	—	—	—	—	1,721.8
Accident	96.5	—	10.1	158.1	2.3	3.6	—	—	—	—	270.6
Other Non-Life	2,063.9	2,658.5	1,598.1	1,492.1	325.6	101.1	212.0	—	—	(3,476.5)	4,974.8
Reinsurance	—	—	—	—	—	—	—	2,481.1	7,384.7	(2,182.6)	7,683.2
TOTAL	7,771.1	5,175.8	2,308.3	3,739.3	2,832.7	1,381.7	231.5	2,481.1	7,384.7	(5,659.1)	27,647.2

Figures in millions of euros

2022

Product	IBERIA	BRAZIL	MEXICO	LATAM SOUTH CENTRAL	NORTH AMERICA	EMEA	ASISTENCI A-MAWDY	GLOBAL RISKS	REINSURA NCE	CORPORAT E AREAS AND CONSOLID ATION ADJUSTME NTS	Total
Life	927.7	1,266.0	246.1	579.9	1.9	51.0	—	—	—	—	3,072.6
Automobile	2,473.9	598.9	159.4	581.9	1,517.4	944.5	53.5	—	—	—	6,329.5
Homeowners and commercial risks	1,155.8	461.3	16.0	271.0	900.0	83.2	—	—	—	—	2,887.3
Health	723.0	—	184.6	518.1	41.6	92.2	—	—	—	—	1,559.5
Accident	101.4	—	8.0	162.2	5.0	5.3	—	—	—	—	281.9
Other Non-Life	1,812.5	2,600.0	822.1	1,774.9	394.1	138.6	237.1	—	—	(3,162.6)	4,616.7
Reinsurance	—	—	—	—	—	—	—	2,623.1	6,305.0	(2,328.2)	6,599.9
TOTAL	7,194.3	4,926.2	1,436.2	3,888.0	2,860.0	1,314.8	290.6	2,623.1	6,305.0	(5,490.8)	25,347.9

3. Amount of insurance revenue by currency

The following tables provide a breakdown of insurance revenue by currency for the last two years.

	Income
Currency	2023	2022
EUROS	9,657.3	8,562.0
US DOLLAR	6,572.4	6,111.7
BRAZILIAN REAL	4,838.8	4,277.5
MEXICAN PESO	682.1	783.0
ARGENT. PESO	85.1	139.9
VENEZUELAN DIGITAL BOLIVAR	13.7	9.1
TURKISH LIRA	364.4	283.9
COLOMBIAN PESO	440.1	395.2
CHILEAN PESO	10.3	103.3
PERUVIAN SUN	264.0	260.1
OTHER CURRENCIES	1,852.8	1,791.5
TOTAL	24,781.0	22,717.2

Figures in millions of euros

B. CREDIT RISK

The Credit Risk Management Policy establishes exposure limits regarding counterparty credit quality, as well as a system of identification, measurement, surveillance, management and mitigation, in addition to monitoring and notifying exposure to this risk.

In the case of reinsurance counterparties, the Group strategy is to cede business to reinsurers with proven financial capacity, generally reinsuring with companies with a financial strength rating of at least "High" (credit rating level 2). The Security Committee is responsible for monitoring exposure to reinsurance counterparties.

The basic principles of mandatory compliance that inspire the reinsurance use management and other risk-reduction techniques are:

a. Capital consumption optimization.

• b. Condition optimization.
• c. Counterparty solvency.
• d. Effective risk transferability.
• e. Risk transfer level adequacy.

The following table shows the breakdown of reinsurer credit ratings with the net debit position:

CREDIT RATING	AMOUNT
	2023	2022
AAA	4.0	2.9
AA	1,945.0	1,346.0
A	2,905.1	3,193.5
BBB	478.2	632.6
BB OR LESS	77.4	79.7
NO CREDIT RATING	512.8	397.3
TOTAL NET POSITION	5,922.6	5,652.0

Figures 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 GUARANTEE	2023	2022
Letters of credit	139.9	126.0
Guarantees	—	—
Pledged assets	—	—
Other guarantees	51.4	21.5
TOTAL	191.3	147.5

Figures in millions of euros

1. Credit risk arising from other financial instruments

The breakdown for the last two years of the portfolio of fixed-income securities and cash, based on the credit rating of issuers of fixed-income securities and financial institutions, is shown in the accompanying chart:

	INTERNATIONAL RATING
		BOOK VALUE
ISSUER CREDIT RATING	PORTFOLIO AT FAIR PORTFOLIO AT FAIR VALUE THROUGH VALUE THROUGH OTHER PROFIT AND LOSS COMPREHENSIVE INCOME			PORTFOLIO AT AMORTIZED COST		CASH
	2023	2022	2023	2022	2023	2022	2023	2022
AAA	886.2	874.8	749.8	565.0	228.8	205.4	23.3	183.0
AA	1,972.9	1,548.4	2,109.2	1,904.9	40.6	2.6	283.2	260.4
A	2,021.2	1,766.2	10,426.7	8,792.8	80.5	22.5	934.7	1,484.2
BBB	2,047.1	1,936.6	5,364.8	4,595.4	82.8	184.9	567.7	215.6
BB OR LESS	2,600.0	2,043.2	1,702.3	1,379.4	723.9	592.1	148.3	99.2
NO CREDIT RATING	256.8	489.1	249.6	475.9	80.2	85.4	128.8	332.1
TOTAL	9,784.2	8,658.3	20,602.4	17,713.4	1,236.8	1,092.9	2,086.0	2,574.5

Figures in millions of euros

2. Fixed-income securities in default

There were no fixed-income securities in default for significant amounts at December 31, 2023 and 2022.

3. Receivables

The following table shows the composition of the receivables heading at December 31, 2023 and 2022, as well as impairment losses, gains on recorded impairment reversals, and amounts received for guarantees in the last two years:

Item	Net balance on balance sheet		Impairment Recorded losses Reversal gains				Guarantees Received
	2023	2022	2023	2022	2023	2022	2023	2022
Tax receivables	514.9	447.5	—	—	—	—	—	—
Corporate and other receivables	766.3	746.1	(7.3)	(3.2)	4.9	2.4	—	—
TOTAL	1,281.2	1,193.6	(7.3)	(3.2)	4.9	13.1	—	—

Figures in millions of euros

The following table shows the maximum exposure to risk for assets and liabilities from insurance and reinsurance contracts at December 31, 2023 and 2022.

ITEM	MAXIMUM CREDIT RISK EXPOSURE
	2023	2022
Insurance contract assets and liabilities	5,043.1	5,059.3
Reinsurance contract assets and liabilities	5,699.6	5,430.1
TOTAL	10,742.7	10,489.4

C. 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 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, 2023, the cash and cash equivalent balance amounted to 2.1 billion euros (2.6 billion euros the previous year), equivalent to 5.2 percent of total financial investments and cash (6.9 percent at the close of 2022).

For Life and Savings insurance, the investment criteria of matching the maturities of investments with those of the obligations entered into under the terms of insurance contracts which mitigates longterm liquidity risk. In addition, most fixed-income investments are investment grade and are traded in organized markets, providing ample capacity to act against potential liquidity stress.

In the face of extreme events, liquidity risk is minimized via the use of reinsurance as a technique to reduce underwriting risk concentration and the selection of reinsurers with high credit quality.

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 undrawn amount from the syndicated loan taken out by the controlling company, provides additional liquidity through financing operations.

Note 6.11 "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 following table shows the estimated schedule of disbursements for insurance contract assets and liabilities recorded at December 31, 2023 and 2022, based on estimates of nominal cash flows that the Group expects in the indicated years.

2023

	ESTIMATED CASH OUTFLOWS IN THE YEARS
ITEM	2024	2025	2026	2027	2028	Subsequent	Final balance
BBA
· Insurance contract assets	8.4	7.4	6.5	5.7	4.9	25.5	58.4
· Insurance contract liabilities	1,547.8	1,296.7	990.6	650.2	594.2	9,922.7	15,002.2
VFA
· Insurance contract assets	–	–	–	–	–	–	–
· Insurance contract liabilities	1,263.9	859.5	858.7	667.2	691.6	5,602.3	9,943.2
PAA
· Insurance contract assets	4,005.1	1,494.2	666.4	295.6	185.7	328.4	6,975.4
· Insurance contract liabilities	8,751.2	2,919.7	1,474.2	809.9	566.4	1,938.2	16,459.6
TOTAL	(7,549.4)	(3,574.3)	(2,650.6)	(1,826.0)	(1,661.6)	(17,109.3)	(34,371.2)

Figures in millions of euros

2022

ITEM	ESTIMATED CASH OUTFLOWS IN THE YEARS
	2023	2024	2025	2026	2027	Subsequent	Final balance
BBA
· Insurance contract assets	4.8	4.2	3.7	3.2	2.8	14.5	33.2
· Insurance contract liabilities	(1,034.8)	(778.1)	(666.1)	(718.0)	(559.1)	(9,069.7)	(12,825.8)
VFA
· Insurance contract assets	–	–	–	–	–	–	–
· Insurance contract liabilities	(911.6)	(726.4)	(644.1)	(658.9)	(530.3)	(4,607.7)	(8,079.0)
PAA
· Insurance contract assets	3,419.0	1,607.1	652.4	296.3	143.2	222.2	6,340.2
· Insurance contract liabilities	(7,518.6)	(3,113.8)	(1,626.0)	(843.8)	(553.9)	(2,169.1)	(15,825.2)
TOTAL	(6,041.2)	(3,007.0)	(2,280.1)	(1,921.2)	(1,497.3)	(15,609.8)	(30,356.6)

Figures in millions of euros

108 Consolidated Annual Accounts 2023

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 in the accompanying chart:

2023

Item	Maturity in
	2024	2025	2026	2027	2028	Subsequent	Total
Subordinated liabilities	61.3	61.3	61.3	641.5	528.5	518.4	1,872.3
Issue of debentures and other negotiable securities	13.9	13.9	862.6	—	—	—	890.4
Due to credit institutions	56.0	114.4	32.9	9.4	9.8	31.9	254.4
Other financial liabilities (excluding for trading, others at fair value and w/o maturity)	600.0	12.1	18.4	14.8	18.4	7.9	671.6
TOTAL	731.2	201.7	975.2	665.7	556.7	558.2	3,688.7

Figures in millions of euros

2022

	Maturity in
Item	2023	2024	2025	2026	2027	Subsequent	Total
Subordinated liabilities	60.0	61.3	61.3	61.3	61.3	1,625.9	1,931.1
Issue of debentures and other negotiable securities	13.9	13.9	13.9	862.6	—	—	904.3
Due to credit institutions	51.5	51.0	269.4	30.5	9.9	48.0	460.3
Other financial liabilities (excluding for trading, others at fair value and w/o maturity)	580.7	0.7	—	0.5	0.3	1.8	584.0
TOTAL	706.1	126.9	344.6	954.9	71.5	1,675.7	3,879.7

Figures in millions of euros

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:

	AMOUNT OF ASSETS EXPOSED TO INTEREST RATE RISK IN:
ITEM	FAIR VALUE (FIXED I.R.)			CASH FLOWS (VARIABLE I.R.)		NOT EXPOSED TO RISK		TOTAL
	2023	2022	2023	2022	2023	2022	2023	2022
FINANCIAL INVESTMENTS AT FAIR VALUE THROUGH P&L	9,106.3	8,406.5	1,461.5	838.3	4,505.0	3,813.5	15,072.8	13,058.3
FINANCIAL INVESTMENTS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME	20,100.9	17,184.4	570.3	573.8	1,010.7	2,545.0	21,681.9	20,303.2
FINANCIAL INVESTMENTS AT AMORTIZED COST	1,181.7	1,133.4	103.5	94.4	10.7	39.1	1,295.9	1,266.9
OTHER INVESTMENTS	122.0	68.8	31.2	8.4	534.7	1,053.2	687.9	1,130.4
TOTAL	30,510.9	26,793.1	2,166.5	1,514.9	6,061.1	7,450.8	38,738.5	35,758.8

	Amount of liabilities exposed to interest rate risk at fair value
Item	Fixed interest rate		Not exposed to risk		Total
	2023	2022	2023	2022	2023	2022
Subordinated liabilities	1,628.4	1,627.0	—	—	1,628.4	1,627.0
Issue of debentures and other negotiable securities	864.2	863.5	—	—	864.2	863.5
Due to credit institutions	96.8	70.4	153.8	373.9	250.6	444.3
Other financial liabilities	890.3	885.4	343.1	1,161.6	1,233.4	2,047.0
TOTAL	3,479.7	3,446.3	496.9	1,535.5	3,976.6	4,981.8

Figures in millions of euros

The following tables show the breakdown of financial investments by maturity for 2023 and 2022.

2023

ITEM	FINAL BALANCE	MATURITY IN
		2024	2025	2026	2027	2028	SUBSEQUENT
FINANCIAL INVESTMENTS AT FAIR VALUE THROUGH IN P&L
Forward foreign exchange contracts	2.0	2.0	–	–	–	–	–
Options	0.4	0.5	–	-0.2	–	–	–
Fixed Income	9,784.2	3,226.7	1,754.0	1,433.6	993.1	679.4	1,697.3
Hybrid instruments	16.1	–	–	16.1	–	–	–
Other	27.7	8.4	0.9	0.5	–	–	17.9
TOTAL PORTFOLIO AT FAIR VALUE THROUGH THE INCOME STATEMENT	9,830.2	3,237.6	1,754.9	1,450.0	993.1	679.4	1,715.2
FINANCIAL INVESTMENTS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME	–	–	–	–	–	–	–
Fixed Income	20,620.7	2,159.0	2,048.7	1,959.7	1,752.9	1,165.5	11,534.8
Other Investments	3.9	3.7	–	–	–	–	0.2
TOTAL PORTFOLIO AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME	20,624.5	2,162.7	2,048.7	1,959.7	1,752.9	1,165.5	11,535.0
FINANCIAL INVESTMENTS AT AMORTIZED COST	–	–	–	–	–	–	–
Fixed Income	1,286.2	228.1	120.4	136.7	23.7	78.2	699.2
Other Investments	9.7	2.9	0.7	0.2	–	1.2	4.6
TOTAL PORTFOLIO AT AMORTIZED COST	1,295.9	231.0	121.1	136.9	23.7	79.4	703.8

ITEM	FINAL BALANCE	MATURITY IN
		2023	2024	2025	2026	2027	SUBSEQUENT
FINANCIAL INVESTMENTS AT FAIR VALUE THROUGH IN P&L
Forward foreign exchange contracts	2.7	2.7	–	–	–	–	–
Options	1.5	–	–	–	-0.2	–	1.7
Fixed Income	8,658.3	2,494.5	1,136.3	1,435.8	1,038.3	798.1	1,755.3
Hybrid instruments	15.3	–	–	–	15.3	–	–
Other	9.5	7.5	0.6	0.7	0.5	–	0.2
TOTAL PORTFOLIO AT FAIR VALUE THROUGH THE INCOME STATEMENT	8,687.3	2,504.7	1,136.9	1,436.5	1,053.9	798.1	1,757.2
FINANCIAL INVESTMENTS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME	–	–	–	–	–	–	–
Fixed Income	17,724.1	1,300.6	1,242.4	1,418.5	1,560.8	2,172.9	10,028.8
Other Investments	–	–	–	–	–	–	–
TOTAL PORTFOLIO AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME	17,724.1	1,300.6	1,242.4	1,418.5	1,560.8	2,172.9	10,028.8
FINANCIAL INVESTMENTS AT AMORTIZED COST	–	–	–	–	–	–	–
Fixed Income	1,206.2	417.1	120.8	75.5	52.2	69.8	470.9
Other Investments	60.7	16.8	0.8	–	0.2	3.0	39.8
TOTAL PORTFOLIO AT AMORTIZED COST	1,266.9	433.9	121.6	75.5	52.4	72.8	510.7

Figures in millions of euros

The average interest rate and modified duration for fixed income investments was 4.50% and 5.22% respectively, (4.25% and 5.46% in 2022).

The modified duration reflects the sensitivity of the value 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 "Tax liabilities" and "Other debts" heading 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".

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.

CURRENCY	INSURANCE ASSETS			OTHER ASSETS		INSURANCE LIABILITIES		OTHER LIABILITIES		NET TOTAL
	2023	2022	2023	2022	2023	2022	2023	2022	2023	2022
EUROS	624.6	1,096.5	31,372.9	31,626.9	22,724.0	21,421.1	4,982.5	6,097.7	4,291.0	5,204.6
US DOLLAR	4,291.2	3,269.0	7,451.2	5,888.7	8,562.9	7,386.0	471.0	385.8	2,708.5	1,385.9
BRAZILIAN REAL	594.3	807.2	5,322.1	4,506.7	3,836.6	3,571.3	943.8	695.7	1,136.0	1,046.9
MEXICAN PESO	282.8	203.0	728.7	858.3	629.5	626.1	95.4	127.5	286.6	307.7
COLOMBIAN PESO	109.2	55.6	1,161.2	778.3	917.2	584.0	46.9	91.1	306.3	158.8
OTHER CURRENCIES	45.2	241.4	2,963.6	2,865.6	1,707.0	1,990.6	374.0	350.6	927.9	765.8
TOTAL	5,947.3	5,672.7	48,999.7	46,524.5	38,377.2	35,579.1	6,913.6	7,748.4	9,656.3	8,869.7

The following provides a sensitivity analysis obtained from the effect of a 10% variation of the most relevant currencies against the euro:

		Effect on
Currency	OCI			P&L
	2023	2022	2023	2022
US DOLLAR	270.8	138.6	(0.2)	(6.9)
BRAZILIAN REAL	113.6	104.7	23.3	13.9
MEXICAN PESO	28.6	30.8	4.4	2.8
COLOMBIAN PESO	30.6	15.9	1.7	6.8
Figures in millions of euros

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, at December 31, 2023 and 2022 reached 1.2 and 1.1 billion euros, respectively.

4. Real estate risk

At December 31, 2023 the Group had real estate assets representing approximately 4.5 percent of total investments and cash (5.1 percent at December 31, 2022), of which approximately 50.1 percent corresponds to its own offices (52.5 percent at December 31, 2022). This investment serves the dual function of providing administrative and sales support as well as generating revenue and diversifying investments. The breakdown of these real estate assets is shown in the following table:

		Net book value	Market value
Item	2023	2022	2023	2022
Real estate investments	973.0	980.8	1,287.4	1,489.9
Real estate for own use	978.2	1,084.7	1,357.5	1,422.6
TOTAL	1,951.2	2,065.5	2,644.9	2,912.5

Figures in millions of euros

Unrealized gains would offset a fall in the price of the properties equivalent to approximately 26.2 percent of their market value at the close of 2023 (29.1 percent at the close of 2022).

E. ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) RISKS

MAPFRE is constantly analyzing all factors that, should they materialize, would or could impact the business. This analysis includes environmental, social and governance (ESG) factors, which makes it possible to obtain additional information about social movements and transformations, stakeholder expectations as well as those of the market, which affect the organization.

Similarly, as a global insurance company, MAPFRE plays an important role when it comes to helping society identify sustainable development opportunities for the insurance industry and offering products and services that contribute to the transition to a low-carbon economy.

Based on the analysis of these ESG factors and how they can affect the business in the short, medium and long-term, they are included in the typology of risks established by the company, and measures for their prevention and mitigation are adopted.

With the aim of meeting the commitments included in the Environmental Policy and meeting the public target of carbon neutrality for the Group in 2030, the Corporate Environmental Footprint Plan 2021-2030 was developed to reduce and compensate our environmental footprint in the countries where the Group operates.

In 2023, progress was made in the development of the various strategic projects included in said Plan. In line with the defined targets, for another year, the 2023 carbon footprint of MAPFRE companies located in Spain and Portugal was neutralized.

In the context of the new Environmental Footprint Plan, the Group has established the following objectives:

Targets to 2024:

• a. Reduce the Group's carbon footprint by 19 percent compared to the 2019 baseline.
• b. Neutralize MAPFRE's carbon footprint in Spain, Portugal, Brazil, the United States, Mexico, Peru, Puerto Rico, Germany, Italy and Turkey.

Targets to 2030:

• a. Reduce the Group's carbon footprint by 50 percent compared to the 2019 baseline.
• b. Neutralize the remaining carbon footprint for the Group as a whole.

These lines of action define the Group's roadmap to fight climate change.

The following is a list of the key environmental commitments regarding underwriting and investment applicable to all Group entities:

112 Consolidated Annual Accounts 2023

UNDERWRITING COMMITMENTS:

In 2012, we adopted the Principles for Sustainable Insurance (PSI) promoted by the United Nations Environment Programme Finance Initiative (UNEPFI), committing to integrate environmental, social, and governance (ESG) issues into our decision-making for the underwriting processes of the Group's insurance operations.

These commitments are defined in the Underwriting Policy, approved by MAPFRE SA's Board of Directors, and are applicable to all insurance and reinsurance companies and in line with the corporate business strategy. MAPFRE has a Global Business Committee which meets monthly, and an Underwriting Policy Committee which meets each semester and is responsible for, among other things, the correct application of this policy, as well as to analyze and propose operating standards of exclusion for ESG matters.

In line with the ESG risk analysis model, at the close of 2023, 90% of underwriting portfolios have been analyzed with environmental, social and governmental (ESG) criteria.

MAPFRE Group maintains environmental commitments in its insurance and reinsurance underwriting business to contribute to the transition toward a low-carbon economy, reinforcing the commitment to be a net zero company by 2050.

These commitments are applicable to all Group companies as of 2023, and the MAPFRE Group Underwriting Policy Committee monitors their compliance:

Carbon

MAPFRE will not insure:

• a. The construction of new coal-fired electric plants or the operation of new coal mines.
• b. The construction of new infrastructure that exclusively service the construction and/or operation of thermal coal mines or thermal coal power plants.

Case-by-case exceptions can be made, which must be assessed by taking into account the company's internal ESG analysis systems.

• a. Companies that derive 20 percent or more of their revenues and/or power generation from thermal coal-produced energy.
• b. Companies with thermal coal-based energy expansion plans of more than 300 MW.
• c. New mining companies that obtain 20 percent or more of their revenues from annual thermal coal extraction and/or production of more than 20 million tons.
• d. Companies that derive 30 percent of their revenues from transporting thermal coal.

In the case of reinsurance, these commitments will apply to the facultative business and to all reinsurance contracts with entities controlled by the MAPFRE Group. From 2024, MAPFRE RE will establish specific coal exposure thresholds for nongroup contracts in the Property & Casualty, Engineering, Accident, Credit and Surety and Marine cargo lines of business.

a. By 2030, MAPFRE's portfolio will no longer include insurance programs related to coal-fired power plants or the operation of thermal coal mines in OECD countries, for companies that have not implemented commitments pertaining to energy transition and decarbonization. Beginning in 2040, this commitment will also apply to the rest of the world, in all countries where MAPFRE operates.

Oil and gas

MAPFRE will not insure:

• a. New individual projects, or their associated infrastructure, for oil and gas extraction and production of any nature, including Shale Oil & Gas and Ultra Deep Water (UDW).
• b. New projects related to extracting or transporting tar sands. MAPFRE pledges that by 2030 its portfolio will not include any insurance projects related to the extraction or transport of tar sands.
• c. Any single new offshore/onshore natural gas or petroleum extraction or transport projects taking place in the Arctic.

Protection emerging economies

a. We can contribute to narrowing the insurance protection gap by providing reinsurance for natural catastrophes to the insurance sector in developing countries, as well as by seeking out collaboration opportunities in public-private initiatives.

In 2023, the established commitments regarding carbon, oil and gas have all been met, and there have been no exceptions approved for these issues.

INVESTMENT COMMITMENTS:

In 2017, we became signatories to the United Nations Principles for Responsible Investment (PRI), and have a global Responsible Investment Framework which was updated in 2023 and is determined by the PRI.

The PRI, which aims to reflect the growing relevance of environmental, social and governmental (ESG) issues in investment processes, coexists with the obligation that the company accepts as a custodian of its clients' savings and investments, and of its own balance sheet's strength. As such, prudent criteria are applied to investment, with the aim of creating long-term value and incorporating, as a compliment to traditional information, ESG factors.

MAPFRE has an Investment Policy, approved by MAPFRE SA's Board of Directors, applicable to all insurance and reinsurance companies and with a series of policies that complement this commitment to sustainable investment:

• Voting Rights Policy.
• ESG Risk Integration Policy.
• Engagement Policy.
• Due Diligence policy in respect of the Principal Adverse Impact

The Corporate Investment Area is the guarantor ensuring that the organization complies with the established principles for responsible investment and of informing the Sustainability Committee of this compliance on an annual basis. The Risks Committees of the various Management centers regularly analyze the composition of the managed portfolios, their ESG evaluation and any controversies that could arise from the application of the exclusion clauses approved by MAPFRE, as well as the investment portfolio's carbon footprint.

With the aim of advancing MAPFRE'S contribution to decarbonization, MAPFRE will not invest in coal, gas and oil companies that are not committed to an energy transition plan that allows global warming to be kept at approximately 1.5⁰C.

Carbon

MAPFRE will not invest in:

• a. Companies where 20 percent or more of their revenues and/or generation comes from coalfired power.
• b. Companies with thermal coal-based energy expansion plans of more than 300 MW in place.
• c. Companies that generate 20 percent or more of their revenues from the extraction and/or annual production of thermal coal in excess of 20 million tons.
• d. By 2040, MAPFRE will no longer hold investments in coal-fired power plants or thermal coal mining.

Oil and gas

MAPFRE will not invest in:

a. Companies where more than 15 percent of their revenues are directly or indirectly linked to oil sands activity.

In line with the United Nations 2030 Agenda, MAPFRE has measured the impact of the portfolios on its balance sheet on the Sustainable Development Objectives, using the methodology developed in 2019 with the University of Siena. We continue working to further develop the methodology and integrate it with the rest of the tools used in ESG investments.

The following targets are established within the 2022-2024 Sustainability Plan:

• 90 percent of the total investment portfolio ESG-rated by 2024.
• 10 percent emissions reduction in the MAPFRE AM investment portfolio at the close of 2024 (v. 2019 base line, for the relevant indicator: TonCO2e/Million €).

Further, as part of our commitment to be a net zero company by 2050, MAPFRE has joined the Net Zero Asset Owner Alliance, defining intermediate targets to align our investment portfolios to a scenario of 1.5ºC.

More detail on MAPFRE Group environmental risks and management is available in the Integrated Report.

F. SENSITIVITY ANALYSIS

The scope of financial and underwriting risks arising from our contracts is determined by the nature of the business underwritten.

For Life contracts, this is determined based on the following risk typology:

114 Consolidated Annual Accounts 2023

• a. Risks associated with mortality and longevity experience. These risks can materialize as they are affected by unexpected events (for example, epidemics like COVID), however the most significant changes in insurance risk factors (for example, changes in life style, medical advances and improved social conditions), tend to take place over the longer-term. As such, the longer the coverage period is, the greater the Group exposure to mortality and/or longevity. Adequate diversification minimizes the impacts at a Group level.
• b. Life Protection and Life Savings contracts expose the Group to interest rate risk. This comes from the degree to which the real returns on financial assets held to finance the liquidation of liabilities differs from the returns guaranteed in the contracts. This risk is more important for contracts that have long durations and when it is not possible to obtain equivalent assets with similar durations. They are managed with an adequate Group ALM policy and sufficiently prudent criteria for establishing guaranteed interest rates in the contracts.
• c. For savings products with and without direct participation, there is risk from the behavior of the insured parties, specifically, the risk that contracts are surrendered or significant quantities are withdrawn before they have earned enough to cover the initial commissions and acquisition expenses incurred. This risk is mitigated through penalty fees for early surrenders of contracts or limiting initial acquisition expenses paid. The contracts with traditional participation features provide the insured parties guaranteed minimum returns on the premiums, and a minimum participation in the performance of a clearly identified group of underlying items (if this is greater). The real participation allocated to the insured parties in a specific period can exceed the guaranteed minimum.

The following points analyze how the CSM, the P&L and OCI would vary if reasonably possible underwriting risk variables had changed at the reporting date.

• a. If there is an instant and permanent 5 percent decrease in mortality assumptions used to calculate cash outflows for insurance contract liabilities, assuming all other variables are constant, in MAPFRE Group, there would be increases in the contractual service margin, increases in the annual P&L, and an insignificant reduction in equity. This effect would have the same intensity before and after risk mitigation through reinsurance, and similarly to the previous year.
• b. If there is a permanent 10 percent decrease in surrender rate assumptions used to calculate insurance contract liabilities, assuming all other variables are constant, in MAPFRE Group, there would be insignificant increases in the contractual service margin, the P&L, and equity. This effect would have the same intensity before and after risk mitigation through reinsurance, and similarly to the previous year.
• c. If there is a 10 percent decrease in maintenance expense assumptions used to calculate insurance contract liabilities, assuming all other variables are constant, in MAPFRE Group, there would be insignificant increases in the contractual service margin, the P&L, and equity. This effect would have the same intensity before and after risk mitigation through reinsurance, and similarly to the previous year.
• d. If there is a 1 percent decrease in the final incurred claims cost assumptions, assuming all other variables are constant, in MAPFRE Group, there would be no impact on the contractual service margin, and insignificant increases in the P&L, and OCI. This effect would have different intensity if the impacts are analyzed before and after risk mitigation through reinsurance, and similarly to the previous year.

The changes in underwriting risk variables primarily affect the CSM, P&L and OCI as follows:

a.CSM

Changes in fulfillment flows not related to any loss component, except those recognized as insurance finance income or expenses.

b. P&L

Changes in fulfillment flows related to loss components.

Changes in fulfillment flows recognized as insurance finance income or expenses in the P&L.

Release of the CSM according to (a).

Changes in the liability for incurred claims variation.

115 Consolidated Annual Accounts 2023

c. OCI

Changes in fulfillment flows recognized as insurance finance income or expenses in OCI.

The effect on P&L according to (b).

For Non-Life insurance, the key risks are the uncertainty related to the frequency and/or severity of claims. which are influenced by the nature and geographic location of the risks covered. For certain products or covers, the cost of claims is affected by the occurrence of extreme weather conditions (for example, floods, tropical cyclones and hurricanes) and other natural catastrophes (for example, earthquakes). Specifically, the cost of rebuilding or repairing property, along with the cost of business interruption in some lines, is an important characteristic in the final value of claims. Additionally, the increase in climate risk could potentially introduce material uncertainty in the assumptions and lead to an inexact insurance risk valuation.

With regard to the economic assumptions, the variations produced in the discount rates affect the valuation of assets and liabilities on the balance sheet. As such, market risk associated with changes in financial variables such as, for example, exchange rates, interest rates, or share prices would affect the insurance and reinsurance contract fulfillment cash flows, as well as the fair value or the future cash flows from associated financial instruments. The aim of market risk management is to maintain exposure to financial variables within acceptable parameters while at the same time optimize returns.

The Group supervises the implementation of the ALM strategy. The ALM framework aims to make cash flows arising from the Group's financial investments coincide with cash flows arising from its insurance and investment contracts, simultaneously optimizing long-term investment return from its financial investments representing accounting capital for an acceptable risk level. On a day-to-day basis, the local Companies are responsible for monitoring market risk exposure. For products measured using the VFA, changes in fair value of underlying items due to changes in market variables are largely reflected in the related insurance and investment contract values, without significant effects in P&L or equity. For products measured using BBA, changes in interest rates are reflected in OCI movements, not affecting the P&L. For products measured using the PAA, interest rate movements, both for associated assets as well as liabilities, are reflected in the P&L, affecting, to the extent that there is one, a significant difference in durations that is controlled and minimized through the ALM.

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.

The insurance premium paid on behalf of the administrators for liability damages was 1.1 million euros (1.2 million euros in 2022).

8.2. FEES EARNED BY THE AUDITORS

The annual accounts of the controlling company and of the main Group companies for the financial year 2022 have been audited by the firm KPMG, with the main exception of the subsidiaries with registered offices in Turkey and Ecuador, whose auditors are RSM Turkey Arkan & Ergin and GRANT THORNTON, respectively.

The remuneration accrued by the main auditor is shown in the accompanying chart. It is deemed that these fees do not compromise the independence of the auditors.

	Amount
Item	2023	2022
Audit services	11.6	9.4
Other verification services	3.2	1.6
Tax services	—	—
Other services	0.1	0.1
TOTAL	14.9	11.1

Figures in millions of euros

The above mentioned amounts include those paid to the company KPMG Auditores, S.L. to the Group in 2023 for the amount of 3.3 million euros for audit services (3.0 million euros in 2022) and 1.6 million euros for Other verification services (0.6 million in 2022). The amounts paid to KPMG in countries other than Spain reached 8.3 million euros for audit services (6.4 million euros in 2022) and 1.7 million euros for Other verification services (1.0 million euros in 2022).

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 review of the Solvency Reports (0.4 million euros in Spain and 0.3 million euros in the rest of the countries).

Other entities associated with KPMG International (KPMG Asesores, S.L.) have invoiced 0.01 million euros for an independent review of the Non-Financial Information Statement.

Fees related to account auditing services provided by auditors other than the main auditor amounted to 0.1 million euros in 2023 and 2022, in each year.

8.3. ENVIRONMENTAL INFORMATION

The Group companies do not have any environmentrelated 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 2023 and 2022:

	Days
Item	2023	2022
Average provider payment period	6.4	6.1
Ratio of paid operations	6.2	5.7
Ratio of operations pending payment	17.8	22.0

	Million euros
Item	2023	2022
Total payments made	1,781.9	1,762.7
Total pending payments exceeding the maximum statutory term	32.7	37.5

Information regarding invoices paid in a period of time less than the maximum established in the late payment regulation is as follows:

Item	2023	2022
Monetary volume paid	1,781.9	1,762.7
Percentage over total monetary payments to providers	1.0	1.0
Number of invoice paid	263,421.0	262,135.0
Percentage over total number of invoices paid to providers	1.0	1.0

			Participation in Capital			Integration
Name	Address		Percentage		Consolidati on	method for
		Holder	2023	2022	method	Solvency
		IBERIA
MAPFRE ESPAÑA COMPAÑÍA	Ctra. Pozuelo, 50. Majadahonda.	MAPFRE, S.A.	99.9994	100.0000	(A)	(1)
DE SEGUROS Y REASEGUROS S.A.	Madrid (España)	MAPFRE TECH, S.A.	0.0006	—
	Ctra. Pozuelo, 50. Majadahonda.	MAPFRE ESPAÑA, S.A.	99.9875	99.9875	(A)	(1)
CLUB MAPFRE, S.A.	Madrid (España)	MAPFRE AUTOMOCIÓN S.A.U	0.0125	0.0125
CENTRO DE	Ctra.Valladolid, km 1	MAPFRE ESPAÑA, S.A.	99.9982	99.9982	(A)	(1)
EXPERIMENTACIÓN Y SEGURIDAD VIAL MAPFRE, S.A.	Ávila (España)	MAPFRE, S.A.	0.0018	0.0018
	Ctra. Pozuelo, 50. Majadahonda.	MAPFRE ESPAÑA, S.A.	100.0000	100.0000	(A)	(1)
MAPFRE AUTOMOCIÓN S.A.U	Madrid (España)
VERTI ASEGURADORA,	Ctra. Pozuelo, 52. Majadahonda.	MAPFRE ESPAÑA, S.A.	99.9991	99.9991	(A)	(1)
COMPAÑÍA DE SEGUROS Y REASEGUROS, S.A	Madrid (España)	CLUB MAPFRE, S.A.	0.0009	0.0009
VERTI MEDIACION SOCIEDAD	Doctor esquerdo, 138	VERTI ASEGURADORA S.A.	—	98.0000	(H)	(H)
DE AGENCIA DE VALORES VINCULADA, S.L. (Dissolved in 2023)	Madrid (España)	CLUB MAPFRE, S.A.	—	2.0000
MAPFRE CONSULTORES DE	Ctra. Pozuelo, 50. Majadahonda.	MAPFRE ESPAÑA, S.A.	—	50.0000	(H)	(H)
SEGUROS Y REASEGUROS, S.A. (Dissolved in 2023)	Madrid (España)	MAPFRE, S.A.	—	50.0000
	Ctra. Pozuelo, 52. Majadahonda.	MAPFRE ESPAÑA, S.A.	97.5000	97.5000	(A)	(1)
MULTISERVICIOS MAPFRE MULTIMAP, S.A.	Madrid (España)	CENTROS MÉDICOS S.A.	2.5000	2.5000
	C/ Doctor Esquerdo, 138 5º	MAPFRE ESPAÑA, S.A.	99.7864	99.7864	(A)	(1)
FUNESPAÑA, S.A.U.	Madrid (España)
	C/ Doctor Esquerdo, 138 5º	FUNESPAÑA, S.A.	100.0000	100.0000	(A)	(1)
FUNESPAÑA DOS, S.L.	Madrid (España)
	C/ Mercaderes, 5 Bajo	FUNESPAÑA DOS, S.L.	100.0000	100.0000	(A)	(1)
POMPES FÚNEBRES DOMINGO, S.L.	Tortosa. Tarragona (España)
	C/ Doctor Esquerdo, 138 5º Plta	FUNESPAÑA DOS, S.L.	100.0000	100.0000	(A)	(1)
SERVICIOS FUNERARIOS FUNEMADRID, S.A.U.	Madrid (España)
	Carretera de Pastrana,Km 3	FUNEMADRID	49.0000	49.0000	(C)	(3)
CEMENTERIO JARDÍN DE ALCALA DE HENARES, S.A.	Alcala de Henares. Madrid (España)
EMPRESA MIXTA SERVEIS	Carretera Villa de Valencia, 2	FUNESPAÑA DOS, S.L.	49.0000	49.0000	(C)	(3)
MUNICIPALS DE TARRAGONA, S.L.	Tarragona (España)
	C/ Cementerio, 4	FUNESPAÑA DOS, S.L.	100.0000	72.8200	(A)	(1)
CEMENTERIO PARQUE ANDUJAR, S.A.	Andujar. Jaén (España)
SERVICIOS FUNERARIOS DE	C/ Doctor Esquerdo, 138 5º Plta	FUNESPAÑA DOS, S.L.	70.0000	70.0000	(A)	(1)
ZARAGOZA, S.L.	Madrid (España)
	Joseph Krt, 49	FUNESPAÑA, S.A.	100.0000	100.0000	(A)	(1)
TANATORIUM ZRT	Budapest (Hungría)
	C / Viena, 2 1º A	FUNESPAÑA DOS, S.L.	40.0000	40.0000	(C)	(3)
INICIATIVAS ALCAÉSAR, S.L.	Cáceres (España)
SALZILLO SERVICIOS	C/ Doctor Esquerdo, 138 5º Plta	FUNESPAÑA DOS, S.L.	45.0000	45.0000	(C)	(3)
FUNERARIOS, S.L.	Madrid (España)
	C/ Doctor Esquerdo, 138 5º Plta	FUNESPAÑA DOS, S.L.	70.0000	70.0000	(A)	(1)
DE MENA SERVICIOS FUNERARIOS, S.L.	Madrid (España)
	Carretera Ávila - Valladiolid Km 08	FUNESPAÑA DOS, S.L.	50.0000	50.0000	(C)	(3)
ISABELO ALVAREZ MAYORGA, S.A.	Ávila (España)
	Alameda de Recalde 10	FUNESPAÑA DOS, S.L.	50.0000	50.0000	(C)	(3)
SERVICIOS FUNERARIOS DEL NERVIÓN, S.L.	Bilbao (España)

118 Consolidated Annual Accounts 2023

		Participation in Capital			Consolidati	Integration
Name	Address		Percentage		on	method for
		Holder	2023	2022	method	Solvency
	Avenida Hermanos Bou, 251	FUNESPAÑA DOS, S.L.	50.0000	50.0000	(C)	(3)
NUEVO TANATORIO, S.L.	Castellón (España)
	Carretera Sanlúcar - Trebujena Km	FUNESPAÑA DOS, S.L.	50.0000	50.0000	(C)	(3)
SERVICIOS FUNERARIOS LA CARIDAD, S.L.	1,5
	Sanlúcar de Barrameda. Cádiz (España)
TANATORIO DE ÉCIJA, S.L.	C / Camino del Valle	FUNESPAÑA DOS, S.L.	33.3300	33.3300	(C)	(3)
	Écija. Sevilla (España)
TANATORIO SE-30 SEVILLA,	C/ San Juan Bosco, 58	FUNESPAÑA DOS, S.L.	10.0000	10.0000	(C)	(3)
S.L.	Zaragoza (España)
	C/ Doctor Esquerdo, 138 5º Plta	FUNESPAÑA, S.A.U	100.0000	100.0000	(A)	(1)
ALL FUNERAL SERVICES, S.L.	Madrid (España)
	Santiago de Chile	FUNESPAÑA, S.A.U	50.0000	50.0000	(B)	(B)
FUNESPAÑA CHILE, S.A.	(Chile)
	Santiago de Chile	FUNESPAÑA, S.A.U	50.0000	50.0000	(B)	(B)
FUNEUROPA CHILE, S.A.	(Chile)
FUNERARIAS REUNIDAS DEL	C/ Doctor Esquerdo, 138 5º Plta	FUNESPAÑA DOS, S.L.	85.8200	85.8200	(A)	(1)
BIERZO, S.A.	Madrid (España)
	C/ La Costera número 20, Polígono	FUNESPAÑA DOS, S.L.	50.0000	50.0000	(C)	(3)
SERVICIOS FUNERARIOS LUCEM S.L.	Industrial Bovalar
	46970 Alaquás. Valencia (España)
FUNERARIA SAN VICENTE,	C/ Restauración, número 2-bajo, Polígono Industrial y de Servicios "Matallana"	FUNESPAÑA DOS, S.L.	50.0000	50.0000	(C)	(3)
S.L.	41440-Lora del Río. Sevilla (España)
INVERSIONES FUNERARIAS	C/Torredonjimeno s/n	FUNESPAÑA DOS, S.L.	—	33.3300	(H)	(H)
ANDALUZAS, S.L. (Sold in 2023)	Martos. Jaén (España)
	Luis Doreste Silva, 18B	FUNESPAÑA DOS, S.L.	100.0000	100.0000	(A)	(1)
FUNERARIA ALIANZA
CANARIA, S.L.	35004 Las Palmas de Gran Canaria (España)
MEDISEMAP, AGENCIA DE	Ctra. Pozuelo, 52. Majadahonda	MAPFRE ESPAÑA, S.A.	66.6667	66.6667	(A)	(1)
SEGUROS, S.L.	Madrid (España)	MAPFRE VIDA, S.A.	33.3333	33.3333
CENTROS MÉDICOS MAPFRE,	Ctra. Pozuelo, 50. Majadahonda.	MAPFRE ESPAÑA, S.A.	100.0000	100.0000	(A)	(1)
S.A.	Madrid (España)
MAPFRE VIDEO Y	Ctra. Pozuelo, 50. Majadahonda	MAPFRE ESPAÑA, S.A.	—	75.0000	(H)	(H)
COMUNICACIÓN S.A. (Sold in 2023)	Madrid (España)	MAPFRE VIDA, S.A.	—	25.0000
BANKINTER SEGUROS	Avda. Bruselas, 12	MAPFRE ESPAÑA, S.A.	50.1000	50.1000	(A)	(1)
GENERALES, CíA DE SEGUROS Y REASEGUROS S.A.	Alcobendas. Madrid (España)
	Av de Barajas, 34	MAPFRE ESPAÑA, S.A.	12.5000	12.5000	(C)	(3)
AUDATEX ESPAÑA, S.A.	Parque Empresarial Omega
	28108 Alcobendas. Madrid (España)
TECNOLOGÍAS DE LA	C/ García Paredes, 55	MAPFRE ESPAÑA, S.A.	22.9506	22.9506	(C)	(3)
INFORMACIÓN Y REDES PARA LAS ENTIDADES ASEGURADORAS, S.A	Madrid (España)
	C/ Gobelas, 23	MAPFRE ESPAÑA, S.A.	19.2300	19.2300	(C)	(3)
AGROSEGURO	Madrid (España)
	Avenida Vasco da Gama 14-10	MAPFRE ESPAÑA, S.A.	24.6100	24.6100	(C)	(3)
SALVADOR CAETANO AUTO (SGPS), S.A.	4430-247 Vila Nova de Gaia (Portugal)
	Ctra. Pozuelo, 50. Majadahonda	MAPFRE ESPAÑA, S.A.	97.5000	97.5000	(A)	(1)
SALUD DIGITAL MAPFRE S.A.	Madrid (España)	CENTROS MÉDICOS MAPFRE,
119 Consolidated Annual Accounts 2023		S.A.	2.5000	2.5000

	Participation in Capital				Consolidati	Integration
Name	Address		Percentage		on	method for
		Holder	2023	2022	method	Solvency
	C/ Cuesta de Carlos V, 9	MAPFRE ESPAÑA, S.A.	19.6414	19.5430	(C)	(3)
PUY DU FOU ESPAÑA,S.A.	45001 Toledo (España)
	Ctra. Pozuelo, 50. Majadahonda	MAPFRE ESPAÑA, S.A.	50.0100	50.0100	(A)	(1)
SANTANDER MAPFRE SEGUROS Y REASEGUROS S.A	Madrid (España)
	C/ Juan Ignacio Luca de Tena, 11 SANTANDER MAPFRE SEGUROS		33.0000	33.0000	(C)	(3)
SANTANDER ASSURANCE SOLUTIONS, S.A.	28027 Madrid (España)	Y REASEGUROS, S.A.
	Ctra. Pozuelo, 52	MAPFRE ESPAÑA, S.A.	82.9732	82.9732	(A)	(1)
MAPFRE INMUEBLES, S.G.A.	Majadahonda	MAPFRE, S.A.	9.9983	9.9983
	Madrid (España)	MAPFRE VIDA, S.A.	7.0279	7.0279
DESARROLLOS URBANOS	Ctra. Pozuelo, 52. Majadahonda	MAPFRE INMUEBLES, S.G.A.	99.9216	99.9216	(A)	(1)
CIC. S.A.	Madrid (España)	MAPFRE, S.A.	0.0784	0.0784
SERVICIOS INMOBILIARIOS	Ctra. Pozuelo, 52. Majadahonda	MAPFRE INMUEBLES, S.G.A.	99.9000	99.9000	(A)	(1)
MAPFRE S.A.	Madrid (España)	DESARROLLOS URBANOS CIC. S.A	0.1000	0.1000
	3 Rue Gabriel Lippmann	MAPFRE INMUEBLES, S.G.A.	50.0000	50.0000	(E)	(3)
MAP SL EROPEAN INVEST	L- 5365 Munsbach
SARL	Grand Duchy of luxembourg
	Cra. Húmera, 52	MAPFRE INMUEBLES, S.G.A.	100.0000	100.0000	(A)	(1)
MAPAR IMPERIAL 14, S.L.	28023 Madrid (España)
	Ctra. Pozuelo, 52	MAPFRE ESPAÑA, S.A.	100.0000	100.0000	(A)	(1)
MAPFRE TECH, S.A.	Majadahonda	MAPFRE VIDA, S.A.	—	—
	Madrid (España)	MAPFRE RE, S.A.	—	—
MAPFRE SEGUROS GERAIS	Rua Doutor António Loureiro	MAPFRE ESPAÑA, S.A.	100.0000	100.0000	(A)	(1)
S.A.	Borges, 9, Algés (Portugal)	MAPFRE GLOBAL RISK, S.A.
MAPFRE SEGUROS DE VIDA S.A.	Rua Doutor António Loureiro Borges, 9,	MAPFRE SEGUROS GERAIS S.A.	100.0000	100.0000	(A)	(1)
	Algés (Portugal)
JORNADA ANCESTRAL, S.A.	Rua Doutor António Loureiro Borges, 9, Algés (Portugal)	MAPFRE SEGUROS GERAIS S.A.	100.0000	—	(G)(A)	(G)(1)
MAPFRE SANTANDER PORTUGAL COMPANHIA DE SEGUROS, S.A.	Rua Doutor António Loureiro Borges, 9, Algés (Portugal)	MAPFRE SEGUROS GERAIS S.A.	50.0100	50.0100	(A)	(1)
	Carretera de Pozuelo, 50.	MAPFRE, S.A.	100.0000	99.9234	(A)	(1)
MAPFRE VIDA SOCIEDAD ANÓNIMA DE SEGUROS Y	(28222) Majadahonda.
REASEGUROS SOBRE LA VIDA HUMANA
	Madrid (España)
CONSULTORA ACTUARIAL Y	Carretera de Pozuelo, 50	MAPFRE VIDA, S.A.	99.9339	99.9339	(A)	(1)
DE PENSIONES MAPFRE VIDA S.A.	(28222) Majadahonda	MAPFRE, S.A.	0.0661	0.0661
	Madrid (España)
GESTIÓN MODA SHOPPING	Avda.General Perón,40	MAPFRE VIDA, S.A.	99.8215	99.8215	(A)	(1)
S.A.	Madrid (España)	MAPFRE, S.A.	0.1785	0.1785
MAPFRE INVERSIÓN	Carretera de Pozuelo, 50-1, M-4. 2º	MAPFRE VIDA, S.A.	99.9991	99.9991	(A)	(4)
SOCIEDAD DE VALORES S.A.	Planta Módulo Sur. (28222) Majadahonda	MAPFRE, S.A.	0.0009	0.0009
	Carretera de Pozuelo, 50-1, M-4. 2º Planta Módulo Norte.	MAPFRE INVERSIÓN, S.A.	99.9853	99.9853	(A)	(4)
MAPFRE ASSET		MAPFRE, S.A.	0.0147	0.0147
MANAGEMENT, S.G.I.I.C., S.A	(28222) Majadahonda.
	Madrid (España)
	Carretera de Pozuelo, 50-1, M-4. 2º	MAPFRE INVERSIÓN, S.A.	99.9971	99.9971	(A)	(4)
MAPFRE VIDA PENSIONES,	Planta Módulo Norte.	MAPFRE, S.A.	0.0029	0.0029
ENTIDAD GESTORA DE FONDOS DE PENSIONES S.A.	Madrid (España)

120 Consolidated Annual Accounts 2023

on Name Address Percentage method for Holder 2023 2022 method Solvency Carretera de Pozuelo, 50 MAPFRE VIDA, S.A. 99.9991 99.9991 (A) 28222 (Majadahonda) MIRACETI S.A. MAPFRE, S.A. 0.0009 0.0009 Madrid (España) — — BANKINTER SEGUROS DE Avda. Bruselas, 12 MAPFRE VIDA, S.A. 50.0000 50.0000 (A) VIDA, S.A. DE SEGUROS Y Alcobendas. Madrid (España) REASEGUROS 60, avenue J.F. Kennedy MAPFRE VIDA, S.A. — 33.7119 (H) (H) MAPFRE AM- GOOD GOVERNANCE (Not L-1855 Luxembourg — 22.5640 OTHER GROUP COMPANIES consolidated in 2023) Grand Duchy of Luxembourg 60, avenue J.F. Kennedy MAPFRE VIDA, S.A. 38.9114 44.2173 (A) MAPFRE AM- IBERIAN L-1855 Luxembourg OTHER GROUP COMPANIES 16.2985 19.6045 EQUITIES Grand Duchy of Luxembourg 60, avenue J.F. Kennedy MAPFRE VIDA, S.A. — 46.5176 (H) (H) MAPFRE AM-EUROPEAN L-1855 Luxembourg OTHER GROUP COMPANIES — 18.7100 EQUITIES (Not consolidated in 2023) Grand Duchy of Luxembourg 60, avenue J.F. Kennedy MAPFRE ESPAÑA, S.A. 40.0618 44.2679 (A) MAPFRE AM-MULTI ASSET L-1855 Luxembourg MAPFRE RE, S.A. 47.6805 46.3691 STRATEGY Grand Duchy of Luxembourg OTHER GROUP COMPANIES 12.2577 9.3630 Ctra. Pozuelo, 50. MAPFRE VIDA, S.A. — 38.4656 (H) (H) FONDMAPFRE ELECCION Majadahonda DECIDIDA (Not consolidated OTHER GROUP COMPANIES — 26.1010 in 2023) Madrid (España) Ctra. Pozuelo, 50. MAPFRE VIDA, S.A. — 45.0771 (H) (H) FONDMAPFRE ELECCION Majadahonda MODERADA (Not consolidated OTHER GROUP COMPANIES — 12.0472 in 2023) Madrid (España) Ctra. Pozuelo, 50. MAPFRE VIDA, S.A. — 44.3462 (H) (H) FONDMAPFRE ELECCION Majadahonda PRUDENTE (Not consolidated OTHER GROUP COMPANIES — 10.6556 in 2023) Madrid (España) Ctra. Pozuelo, 50. MAPFRE VIDA, S.A. — 31.9098 (H) (H) FONDMAPFRE BOLSA Majadahonda MAPFRE ESPAÑA, S.A. — 20.7919 AMERICA (Not consolidated in 2023) Madrid (España) OTHER GROUP COMPANIES — 14.4734 Ctra. Pozuelo, 50. MAPFRE VIDA, S.A. — 43.2321 (H) (H) FONDMAPFRE GLOBAL F.I. Majadahonda OTHER GROUP COMPANIES — 1.9864 (Not consolidated in 2023) Madrid (España) Ctra. Pozuelo, 50. MAPFRE VIDA, S.A. 59.3064 58.5200 (A) FONDMAPFRE BOLSA MIXTO Majadahonda OTHER GROUP COMPANIES — 3.4879 F.I. Madrid (España) Ctra. Pozuelo, 50. MAPFRE VIDA, S.A. — 9.2931 (H) (H) FONDMAPFRE BOLSA EUROPA F.I (Not consolidated Majadahonda MAPFRE RE, S.A. — 22.5386 in 2023) Madrid (España) OTHER GROUP COMPANIES — 18.3976 60, avenue J.F. Kennedy MAPFRE ESPAÑA, S.A. 38.8709 (A) 32.5587 MAPFRE AM- SHORT TERM L-1855 Luxembourg MAPFRE RE, S.A. 56.6517 44.5393 EURO I Grand Duchy of Luxembourg OTHER GROUP COMPANIES 3.4758 3.3558 Ctra. Pozuelo, 50. MAPFRE VIDA, S.A. — 99.9989 (H) (H) FONDMAPFRE GARANTIA, F.I Majadahonda (Not consolidated in 2023) Madrid (España)		Participation in Capital			Consolidati	Integration
(1) (1) (3) (3) (3) (3)

121 Consolidated Annual Accounts 2023

		Participation in Capital			Consolidati	Integration
Name	Address		Percentage		on	method for
		Holder	2023	2022	method	Solvency
	Ctra. Pozuelo, 50.	MAPFRE VIDA, S.A.	—	99.9970	(H)	(H)
FONDMAPFRE GARANTIA II,	Majadahonda
F.I (Not consolidated in 2023)	Madrid (España)
	60, avenue J.F. Kennedy	MAPFRE ESPAÑA, S.A.	—	—	(C)	(3)
	L-1855 Luxembourg	MAPFRE RE, S.A.	16.2600	16.0000
STABLE INCOME EUROPEAN REAL ESTATE FUND	Grand Duchy of Luxembourg	MAPFRE VIDA, S.A.	19.9000	20.0000
		OTHER GROUP COMPANIES	8.4500
	60, avenue J.F. Kennedy	MAPFRE RE, S.A.	—	25.9254	(H)	(H)
MAPFRE AM-BEHAVORIAL FUND I (Not consolidated in	L-1855 Luxembourg	OTHER GROUP COMPANIES	—	13.5998
2023)	Grand Duchy of Luxembourg		—
	60, avenue J.F. Kennedy	MAPFRE ESPAÑA, S.A.	—	8.7409	(H)	(H)
MAPFRE AM-INCLUSION RESPONSABLE (Not	L-1855 Luxembourg	MAPFRE RE, S.A.	—	22.7889
consolidated in 2023)	Grand Duchy of Luxembourg	OTHER GROUP COMPANIES	—	29.0887
	60, avenue J.F. Kennedy	MAPFRE ESPAÑA, S.A.	34.8445	34.4366	(A)	(3)
MAPFRE AM-US FORGOTTEN VALUE	L-1855 Luxembourg	MAPFRE RE, S.A.	23.3762	23.0684
	Grand Duchy of Luxembourg	OTHER GROUP COMPANIES	9.8790	9.7818
	60, avenue J.F. Kennedy	MAPFRE VIDA, S.A.	—	39.7719	(H)	(H)
MAPFRE AM GLOBAL BOND FUND (Not consolidated en	L-1855 Luxembourg	MAPFRE ESPAÑA, S.A.	—	9.3791
2023)	Grand Duchy of Luxembourg	OTHER GROUP COMPANIES	—	13.8924
SWISSLIFE SPPICAV	60, avenue J.F. Kennedy	SIEREFF MAPFRE	49.7404	14.9800	(C)	(3)
	L-1855 Luxembourg		—	16.9800
	Grand Duchy of Luxembourg		—	17.1900
	60, avenue J.F. Kennedy	SIEREFF MAPFRE	75.1073	24.2422	(A)	(3)
OLIFAN INMO 18 OPCI	L-1855 Luxembourg		—	30.2062
	Grand Duchy of Luxembourg		—	4.4109
	Ctra. Pozuelo, 50.	MAPFRE ESPAÑA, S.A.	5.6700	8.0654	(C)	(3)
MAPFRE INFRAESTRUCTURAS FCR	Majadahonda	MAPFRE RE, S.A.	6.5600	9.3366
	Madrid (España)	OTHER GROUP COMPANIES	19.0500	4.5148
	Ctra. Pozuelo, 50.	MAPFRE ESPAÑA, S.A.	31.3900	28.0800	(A)	(3)
MAPFRE PRIVATE EQUITY I FCR	Majadahonda	MAPFRE RE, S.A.	40.6000	35.7600
		OTRAS SOCIEDADES DEL GRUPO	11.0300	14.6400
	Avda. de Bruselas, 13 pl.1, pta. C	MAPFRE ESPAÑA, S.A.	26.4900	26.4900	(F)(A)	(3)
MAPFRE ENERGIAS	28108 Alcobendas
RENOVABLES I, F.C.R.	Madrid (España)	MAPFRE RE, S.A. OTRAS SOCIEDADES DEL	25.3600 27.9300	25.3600 27.9300
	C/ Tomás Redondo, 1	GRUPO MAPFRE ENERGIAS	49.0000	80.0000	(F)(C)	(3)
ENERGIAS RENOVABLES IBERMAP, S.L.	Madrid (España)	RENOVABLES I, F.C.R.
	Ctra. Pozuelo, 50.	MAPFRE VIDA, S.A.	—	41.5233	(F)(A)	(H)
FONDMAPFRE RENTA FIJA FLEXIBLE (Not consolidated in 2023)	Majadahonda	OTRAS SOCIEDADES DEL	—	1.0625
	Madrid (España)	GRUPO
	60, avenue J.F. Kennedy	MAPFRE ESPAÑA, S.A.	—	100.0000	(H)	(H)
MAPFRE AM SELECTION (Not consolidated in 2023)	L-1855 Luxembourg
	Grand Duchy of Luxembourg
FONDMAPFRE GARANTIA III,	Ctra. Pozuelo, 50.	MAPFRE ESPAÑA, S.A.	21.8736	20.0109	(F)(A)	(F)(3)
	Majadahonda	MAPFRE RE, S.A.	24.0609	22.0119
F.I.	Madrid (España)	OTRAS SOCIEDADES DEL	7.2180	13.6947
	Ctra. Pozuelo, 50.	GRUPO MAPFRE VIDA, S.A.	100.0000	100.0000	(H)	(H)
FONDMAPFRE GARANTIA IV, F.I. (Not consolidated in 2023)	Majadahonda
				—

122 Consolidated Annual Accounts 2023

		Participation in Capital			Consolidati	Integration
Name	Address		Percentage		on	method for
		Holder	2023	2022	method	Solvency
	60, avenue J.F. Kennedy	MAPFRE S.A.	5.0000	5.0000	(C)	(3)
MEAG EUROPE OFFICE	L-1855 Luxembourg	MAPFRE ESPAÑA, S.A.	22.5000	22.5000
SELECT EOS SCSP	Grand Duchy of Luxembourg	MAPFRE RE, S.A.	22.5000	22.5000
	60, avenue J.F. Kennedy	MAPFRE VIDA, S.A.	12.6984	12.6984	(C)	(3)
SIEREFF MACQUQRIE 2	L-1855 Luxembourg	MSV LIFE PLC
	Grand Duchy of Luxembourg	OTRAS SOCIEDADES DEL GRUPO	15.8730 19.0476	15.8730 19.0476
	60, avenue J.F. Kennedy	MAPFRE ESPAÑA, S.A.	23.6900	—	(G)(A)	(G)(3)
SIEREFF MAPFRE	L-1855 Luxembourg	MAPFRE RE, S.A.
	Grand Duchy of Luxembourg	OTRAS SOCIEDADES DEL GRUPO	40.5400 19.7600	— —
	Ctra. Pozuelo, 50.	MAPFRE ESPAÑA, S.A.	39.6300	—	(G)(A)	(G)(3)
	Majadahonda	MAPFRE RE, S.A.
MAPFRE PRIVATE DBT, FII	Madrid (España)	OTRAS SOCIEDADES DEL GRUPO	32.7500 15.9200	— —
	Avd.Naçoes Unidas, 11711 16.	BRAZIL MAPFRE PARTICIPAÇOES, S.A.	100.0000	100.0000	(A)	(7)
MAPFRE SEGUROS GERAIS	Andar Brooklin
S.A.
	São Paulo. (Brasil)
MAPFRE VERA CRUZ	Avd.Naçoes Unidas, 11711 16.	MAPFRE BRASIL PARTICIPAÇOES, S.A.	100.0000	100.0000	(A)	(1)
CONSULTORIA E ADMINISTRACAO DE FUNDOS LTDA.	Andar Brooklin
	São Paulo (Brasil)
	Avd.Naçoes Unidas, 11711 16.	MAPFRE BRASIL PARTICIPAÇOES, S.A.	25,0100(*)	25,0100(*)	(A)	(1)
BB MAPFRE PARTICIPAÇOES, S.A.	Andar Brooklin
	São Paulo (Brasil)
	Avd.Naçoes Unidas, 11711 16.	MAPFRE PARTICIPAÇOES, S.A.	100.0000	100.0000	(A)	(1)
MAPFRE CAPITALIZAÇAO S.A.	Andar Brooklin
	São Paulo (Brasil)
	Avd.Naçoes Unidas, 11711 16.	MAPFRE BRASIL PARTICIPAÇOES, S.A.	100.0000	100.0000	(A)	(1)
MAPFRE PARTICIPAÇOES, S.A.	Andar Brooklin
	São Paulo (Brasil)
MAPFRE BRASIL	Avd.Naçoes Unidas, 11711 16. Andar Brooklin	MAPFRE INTERNACIONAL, S.A. MAPFRE INVESTMENT S.A.	99.1700 0.8300	99.1700 0.8300	(A)	(1)
PARTICIPAÇOES, S.A.	São Paulo (Brasil)
	Avd.Naçoes Unidas, 11711 16.	MAPFRE PARTICIPAÇOES, S.A.	100.0000	100.0000	(A)	(7)
MAPFRE VIDA S.A.	Andar Brooklin
	São Paulo (Brasil)
	Avd.Naçoes Unidas, 11711 16.	MAPFRE INVESTIMENTOS E PARTICIPAÇOES SA	—	99.9900	(A)	(9)
MAPFRE INVESTIMENTOS LTDA.	Andar Brooklin
	São Paulo (Brasil)	MAPFRE BRASIL PARTICIPAÇOES, S.A.	100.0000	0.1000
	Avda.Mª Coelho Aguiar 215	MAPFRE PARTICIPAÇOES, S.A.	100.0000	100.0000	(A)	(7)
MAPFRE PREVIDENCIA S.A.	Jardim São Luis Bloco F - 2º andar,
	São Paulo (Brasil) Avd.Naçoes Unidas, 11711 17.	MAPFRE BRASIL	—	100.0000	(H)	(1)
MAPFRE INVESTIMENTOS E PARTICIPAÇOES, S.A. (Merged	Andar Brooklin	PARTICIPAÇOES, S.A.
with Mapfre Brasil 123 Participações S.A in 2023) Consolidated Annual Accounts 2023	São Paulo (Brasil)

		Participation in Capital	Consolidati	Integration
Name	Address		Percentage		on	method for
		Holder	2023	2022	method	Solvency
	R.Manuel da Nobrega, 12809.	BB MAPFRE PARTICIPAÇOES	100.0000	100.0000	(A)	(7)
ALIANÇA DO BRASIL	Andar, Rio de Janeiro	S.A.
SEGUROS, S.A.	Sao Paulo (Brasil)
BRASILSEG COMPANHIA DE SEGUROS S.A.	R.Senador Dantas, 105 29 parte, 30 e 31. Andares. São Paulo-SP	BB MAPFRE PARTICIPAÇOES S.A.	100.0000	100.0000	(A)	(7)
	(Brasil) BROTO, S.A. R.Senador Dantas, 105 29 parte, 30	ALIANÇA DO BRASIL SEGUROS,
	e 31. Andares. São Paulo-SP	S.A.	50.0000	—	(G)(A)	(G)(7)
	Avenida das Nações Unidas, 12.495 11º	MAPFRE INVESTIMENTOS E PARTICIPAÇOES SA	—	100.0000	(A)	(1)
MAC INVESTIMENTOS S.A	Andar Brooklin
	São Paulo-SP (Brasil)	MAPFRE BRASIL PARTICIPAÇOES, S.A.	100.0000
	Avenida das Nações Unidas, 12.495	MAPFRE BRASIL PARTICIPAÇOES, S.A.	—	99.9900	(H)	(1)
MAPFRE SAUDE LTDA	11º Andar Brooklin
(Merged with Mapfre Brasil Participações S.A in 2023)	São Paulo-SP (Brasil)
	Avenida das Nações Unidas, 12.495	MAPFRE BRASIL	100.0000	100.0000	(A)	(1)
PROTENSEG CORRETORA DE	11º	PARTICIPAÇOES, S.A.
SEGUROS LTDA	Andar Brooklin
	São Paulo-SP (Brasil)
		MEXICO
	Avenida Paseo de la Reforma 243 Colonia Cuauhtémoc Delegación	MAPFRE INTERNACIONAL, S.A.	55.6602	55.6602	(A)	(7)
MAPFRE MÉXICO S.A.	Cuauhtémoc.	GRUPO CORPORATIVO LML S.A.	44.3398	44.3398
	Distrito Federal C.P. 06500
	(México) Avenida Paseo de la Reforma 243	MAPFRE INTERNACIONAL, S.A.	100.0000	100.0000	(A)	(1)
GRUPO CORPORATIVO LML	Colonia Cuauhtémoc Delegación Cuauhtémoc.
S.A. DE C.V.	Distrito Federal C.P. 06500
	(México), Avenida Paseo de la Reforma 243	MAPFRE MÉXICO S.A.	99.9982	99.9982	(A)	(7)
MAPFRE UNIDAD DE	Colonia Cuauhtémoc Delegación Cuauhtémoc.
SERVICIOS S.A. DE C.V.	Distrito Federal C.P. 06500
	(México)
	Avenida Paseo de la Reforma 243 Colonia Cuauhtémoc Delegación	MAPFRE MÉXICO S.A.	100.0000	100.0000	(A)	(7)
MAPFRE DEFENSA LEGAL S.A. DE C.V.	Cuauhtémoc.
	Distrito Federal C.P. 06500 (México)
MAPFRE TEPEYAC INC.	109 Este San Ysidro Blvd No. 65	MAPFRE MÉXICO S.A.	100.0000	100.0000	(A)	(7)
	San Isidro California, EEUU
	Avenida Paseo de la Reforma 243 Colonia Cuauhtémoc Delegación	MAPFRE MÉXICO S.A.	99.9900	99.9900	(A)	(7)
MAPFRE SERVICIOS MEXICANOS S.A.	Cuauhtémoc.
	Distrito Federal C.P. 06500
	(México) Calle 1 Sur No. 101	MAPFRE MÉXICO S.A.	16.6700	16.6700	(D)	(7)
CESVI MÉXICO, S.A.	Parque Industrial Toluca 2000
	Toluca. Estado de México (Mexico)
	Avenida Paseo de la Reforma 243 Colonia Cuauhtémoc Delegación	MAPFRE MÉXICO S.A.	100.0000	100.0000	(A)	(7)
MAPFRE FIANZAS S.A.	Cuauhtémoc.
	Distrito Federal C.P. 06500 (México)
		LATAM SOUTH-CENTRAL
MAPFRE TENEDORA DE ACC,	Costa del Este, diagonal al	MAPFRE AMERICA CENTRAL,	100.0000	100.0000	(A)	(9)
S.A.	Business Park Panamá (Panamá)	S.A.

124 Consolidated Annual Accounts 2023

		Participation in Capital			Consolidati	Integration
Name	Address		Percentage		on	method for
		Holder	2023	2022	method	Solvency
MAPFRE AMERICA CENTRAL S.A	Costa del Este, diagonal al Business Park Panamá (Panamá)	MAPFRE INTERNACIONAL, S.A.	99.9000	99.9000	(A)	(1)
	Avenida Berlín y Calle Viena, piso 7	MAPFRE TENEDORA DE ACC, S.A.	73.2569	73.2569	(A)	(9)
MAPFRE SEGUROS HONDURAS S.A.	Lomas del Guijarro Sur. Edificio Plaza Azul Tegucigalpa, M.D.C. (Honduras)	MAPFRE AMERICA CENTRAL, S.A.	25.1031	25.1031
MAPFRE PANAMÁ S.A.	Costa del Este, diagonal al Business Park Panamá (Panamá)	MAPFRE AMERICA CENTRAL, S.A.	99.3772	99.3772	(A)	(1)
MAPFRE S.E.M S.A.	Costa del Este, diagonal al Business Park Panamá (Panamá)	MAPFRE INTERNACIONAL, S.A.	100.0000	—	(G)(A)	(G)(1)
MAPFRE SEGUROS EL	Alameda Roosevelt, 3107 Nivel 7	MAPFRE AMERICA CENTRAL, S.A.	78.1065	78.1065	(A)	(9)
SALVADOR, S.A.	San Salvador (El Salvador)
INMOBILIARIA AMERICANA	Alameda Roosevelt, 31-07	MAPFRE AMERICA CENTRAL, S.A.	78.9000	78.9000	(A)	(9)
S.A.	San Salvador (El Salvador)
MAPFRE SEGUROS COSTA RICA S.A.	Barrio Tournón, Edificio Alvasa, 2do. Piso Diagonal al Periódico La República en	MAPFRE TENEDORA DE ACC, S.A.	100.0000	100.0000	(A)	(9)
	interseción con Ctra de Guapiles (Ruta 32) San José (Costa Rica)
	5a Avenida 5-55 Zona 14 Europlaza	MAPFRE TENEDORA DE ACC, S.A.	100.0000	100.0000	(A)	(9)
MAPFRE SEGUROS GUATEMALA S.A.	Europlaza Torre 4 Nivel 16 y PH. Ciudad de Guatemala(Guatemala)
	Edificio Invercasa, 1er. Piso	MAPFRE TENEDORA DE ACC,	100.0000	100.0000	(A)	(9)
MAPFRE SEGUROS NICARAGUA S.A.	Managua (Nicaragua)	S.A.
	Ave Abraham Lincoln, 952 esq. José Amado Soler Ensanche	MAPFRE INTERNACIONAL, S.A.	99.9999	99.9999	(A)	(9)
MAPFRE DOMINICANA S.A.	Piantini, Santo Domingo (República Dominicana)	CREDIPRIMAS, S.A.	0.0001	0.0001
MAPFRE BHD COMPAÑÍA DE SEGUROS, S.A.	Ave Abraham Lincoln, 952 esq. José Amado Soler Ensanche Piantini, Santo Domingo (República Dominicana)	MAPFRE DOMINICANA S.A.	51.0000	51.0000	(A)	(9)
CREDIPRIMAS, S.A.	Ave Abraham Lincoln, 952 esq. José Amado Soler Ensanche Piantini, Santo Domingo (República Dominicana)	MAPFRE BHD COMPAÑÍA DE SEGUROS S.A.	100.0000	100.0000	(A)	(9)
MAPFRE SALUD ARS	Av. 27 de Febrero No. 50. Edificio ARS Palic, Urb. El Vergel, Santo Domingo (República Dominicana)	MAPFRE DOMINICANA S.A.	51.0000	51.0000	(A)	(9)
		Avda. Juana Manso, 205 C MAPFRE INTERNACIONAL, S.A.	100.0000	100.0000	(A)	(1)
MAPFRE ARGENTINA HOLDING S.A.	1107CBE Puerto Madero
	Buenos Aires (Argentina)
		Avda. Juana Manso, 205 C MAPFRE ARGENTINA HOLDING S.A.	99.9988	99.9988	(A)	(1)
MAPFRE ARGENTINA SEGUROS S.A.	1107CBE Puerto Madero
	Buenos Aires (Argentina)
CLUB MAPFRE ARGENTINA S.A.		Avda. Juana Manso, 205 C MAPFRE ARGENTINA HOLDING S.A.	97.0000	97.0000	(A)	(1)
		1107CBE Puerto Madero MAPFRE ARGENTINA SEGUROS DE VIDA S.A.	3.0000	3.0000
	Buenos Aires (Argentina)
MAPFRE ARGENTINA SEGUROS DE VIDA S.A.		Avda. Juana Manso, 205 C MAPFRE INTERNACIONAL, S.A. 1107CBE Puerto Madero MAPFRE ARGENTINA HOLDING	64.0000 36.0000	64.0000 36.0000	(A)	(9)
	Buenos Aires (Argentina)	S.A.

125 Consolidated Annual Accounts 2023

		Participation in Capital	Consolidati	Integration
Name	Address		Percentage		on	method for
		Holder	2023	2022	method	Solvency
	Calle 9 y 17. Parque Ind.Pilar MAPFRE ARGENTINA SEGUROS		60.6400	60.6400	(A)	(1)
CESVI ARGENTINA, S.A.		S.A.
	Buenos Aires (Argentina)
		Isidora Goyenechea 3520 p 16 MAPFRE INTERNACIONAL, S.A.	100.0000	100.0000	(A)	(1)
MAPFRE CHILE SEGUROS S.A.	Las Condes
	Santiago de Chile (Chile)
	Isidora Goyenechea 3520 p 16	MAPFRE CHILE SEGUROS S.A.	99.9999	99.9999	(A)	(1)
MAPFRE CHILE ASESORÍAS, S.A		Las Condes MAPFRE INTERNACIONAL, S.A.	0.0001	0.0001
	Santiago de Chile (Chile)
MAPFRE COMPAÑÍA DE	Isidora Goyenechea 3520 p 16	MAPFRE CHILE SEGUROS S.A.	87.2900	87.2900	(A)	(1)
SEGUROS GENERALES DE		Las Condes MAPFRE CHILE ASESORÍAS, S.A	12.7100	12.7100
CHILE S.A.	Santiago de Chile (Chile)
		Isidora Goyenechea 3520 p 16 MAPFRE INTERNACIONAL, S.A.	100.0000	100.0000	(A)	(9)
MAPFRE CHILE VIDA, S.A.	Las Condes
	Santiago de Chile (Chile)
	Isidora Goyenechea 3520 p 16	MAPFRE CHILE VIDA S.A.	99.9968	99.9968	(A)	(9)
MAPFRE COMPAÑÍA DE SEGUROS DE VIDA DE CHILE		Las Condes MAPFRE INTERNACIONAL, S.A.	0.0032	0.0032
S.A.	Santiago de Chile (Chile)
		Carrera, 14, nº 96-34 MAPFRE INTERNACIONAL, S.A.	93.8525	93.8525	(A)	(1)
MAPFRE SEGUROS GENERALES DE COLOMBIA	Santa Fé de Bogotá (Colombia)	APOINT S.A.	6.1425	6.1425
S.A.		MAPFRE COLOMBIA VIDA	—	—
		SEGUROS S.A. Carrera, 14, nº 96-34 MAPFRE SEGUROS GENERALES	100.0000	100.0000	(A)	(1)
CREDIMAPFRE S.A.		DE COLOMBIA S.A.
	Santa Fé de Bogotá (Colombia)
MAPFRE COLOMBIA VIDA SEGUROS S.A.		Carrera, 14, nº 96-34 MAPFRE INTERNACIONAL, S.A.	94.3541	94.3541	(A)	(1)
	Santa Fé de Bogotá (Colombia)	APOINT S.A.	5.6459	5.6459
CESVI COLOMBIA, S.A.		Carrera 87, Num.15-87 MAPFRE SEGUROS GENERALES DE COLOMBIA S.A.	67.7723	67.7723	(A)	(1)
	Santa Fé de Bogotá(Colombia)
MAPFRE SERVICIOS	Carrera, 14, nº 96-34	CREDIMAPFRE S.A.	100.0000	100.0000	(A)	(1)
EXEQUIALES SAS	Santa Fé de Bogotá (Colombia)
	Kennedy e Norte, Justino Cornejo y Avda, Luis Orrantia. Edificio Torres	MAPFRE INTERNACIONAL, S.A.	68.5490	67.6550	(A)	(9)
MAPFRE ATLAS COMPAÑÍA DE SEGUROS, S.A.	Atlas
	Guayaquil (Ecuador)
MAPFRE PARAGUAY		Av.Mariscal López, 910 MAPFRE INTERNACIONAL, S.A.	89.5400	89.5400	(A)	(9)
COMPAÑÍA DE SEGUROS S.A.	Asunción (Paraguay)
		Av.Veintiocho de Julio, 873 MAPFRE INTERNACIONAL, S.A.	100.0000	98.5866	(A)	(9)
MAPFRE PERÚ ENTIDAD		Miraflores- Lima 18 (Perú) MAPFRE PERU CIA. SEGUROS Y	—	1.4134
PRESTADORA DE SALUD		REASEGUROS S.A.
MAPFRE PERÚ COMPAÑÍA DE		Av.Veintiocho de Julio, 873 MAPFRE INTERNACIONAL, S.A.	99.5900	99.5900	(A)	(1)
SEGUROS Y REASEGUROS S.A.	Miraflores- Lima 18 (Perú)		—	—
CORPORACIÓN FUNERARIA, S.A.	Av.Veintiocho de Julio, 873	MAPFRE PERÚ COMPAÑÍA DE	100.0000	100.0000	(A)	(1)
	Miraflores- Lima 18 (Perú)	SEGUROS Y REASEGUROS S.A.
		Col. 993 Piso 3 MAPFRE INTERNACIONAL, S.A.	100.0000	100.0000	(A)	(9)
APOINT S.A.	Montevideo (Uruguay)
MAPFRE URUGUAY SEGUROS S.A.	Juncal 1385 piso 2	MAPFRE INTERNACIONAL, S.A.	100.0000	100.0000	(A)	(9)
	Montevideo (Uruguay)
			99.5159	99.5159	(A)	(9)
	Avenida Francisco de Miranda, MAPFRE INTERNACIONAL, S.A.
MAPFRE LA SEGURIDAD C.A. DE SEGUROS	Torre Financiera Caracas, piso 14,
	Urbanización La Castellana. Chacao, Estado Miranda
	(Venezuela)

126 Consolidated Annual Accounts 2023

		Participation in Capital	Consolidati	Integration
Name	Address		Percentage		on	method for
		Holder	2023	2022	method	Solvency
	Avenida Francisco de Miranda, MAPFRE LA SEGURIDAD C.A. DE		100.0000	100.0000	(A)	(9)
CENTRO DE FORMACION	Torre Financiera Caracas, piso 14,	SEGUROS
PROFESIONAL SEGUROS LA SEGURIDAD C.A.	Urbanización La Castellana.
	Chacao, Estado Miranda
	(Venezuela) Avenida Francisco de Miranda, MAPFRE LA SEGURIDAD C.A. DE		100.0000	100.0000	(A)	(9)
INVERSORA SEGURIDAD	Torre Financiera Caracas, piso 14,	SEGUROS
FINANCIADORA DE PRIMAS, C.A.	Urbanización La Castellana.
	Chacao, Estado Miranda
	(Venezuela) Avenida Francisco de Miranda, MAPFRE LA SEGURIDAD C.A. DE		100.0000	100.0000	(A)	(9)
	Torre Financiera Caracas, piso 14,	SEGUROS
CLUB MAPFRE S.A.	Urbanización La Castellana.
	Chacao, Estado Miranda
	(Venezuela)
	Avenida Francisco de Miranda, MAPFRE LA SEGURIDAD C.A. DE	SEGUROS	97.0000	97.0000	(A)	(9)
AUTOMOTRIZ MULTISERVICAR-VENEZUELA,	Torre Financiera Caracas, piso 14,
C.A.	Urbanización La Castellana.
	Chacao, Estado Miranda (Venezuela)
	Avenida Francisco de Miranda, MAPFRE INTERNACIONAL, S.A.		99.7000	99.7000	(A)	(9)
AMA-ASISTENCIA MEDICA	Torre Financiera Caracas, piso 14,
ADMINISTRADA, C.A.	Urbanización La Castellana.
	Chacao, Estado Miranda (Venezuela)
	Avenida Francisco de Miranda, MAPFRE LA SEGURIDAD C.A. DE		99.7000	99.7000	(A)	(9)
	Torre Financiera Caracas, piso 14,	SEGUROS
UNIDAD EDUCATIVA D.R FERNANDO BRAVO PEREZ CA	Urbanización La Castellana.
	Chacao, Estado Miranda
	(Venezuela)
	NORTH AMERICA 5959 Blue Lagoon Drive, Suite 400,	COMMERCE INSURANCE	100.0000	100.0000	(A)	(7)
MAPFRE INSURANCE COMPANY OF FLORIDA
	Miami (E.E.U.U)
MAPFRE INSURANCE	100 Campus Drive New Jersey	COMMERCE INSURANCE	100.0000	100.0000	(A)	(7)
COMPANY	07932-2007 (E.E.U.U.))
MAPFRE INTERMEDIARIES	5959 Blue Lagoon Drive, Suite 400,	COMMERCE INSURANCE	100.0000	100.0000	(A)	(7)
	Miami (E.E.U.U)
MAPFRE USA CORPORATION		211 Main Street, Webster, MAPFRE INTERNACIONAL, S.A.	100.0000	100.0000	(A)	(1)
INC	MA 01570 (EE.UU.)
	211 Main Street, Webster,	MAPFRE USA CORPORATION	100.0000	100.0000	(A)	(7)
THE COMMERCE INSURANCE COMPANY	MA 01570 (EE.UU.)
	211 Main Street, Webster,	MAPFRE USA CORPORATION	100.0000	100.0000	(A)	(7)
THE CITATION INSURANCE COMPANY	MA 01570 (EE.UU.)
	211 Main Street, Webster,	MAPFRE USA CORPORATION	100.0000	100.0000	(A)	(1)
MAPFRE TECH USA CORPORATION	MA 01570 (EE.UU.)
ACIC HOLDINGS COMPANY, INC.	215 Main Street, Webster,	MAPFRE USA CORPORATION	100.0000	100.0000	(A)	(1)
	MA 01570 (EE.UU.)
	3590 Twin Creeks Drive, Columbus,	ACIC HOLDINGS	100.0000	100.0000	(A)	(7)
AMERICAN COMMERCE INSURANCE COMPANY	OH 43204 (EE.UU.)
MM REAL ESTATE, LLC	Blue Lagoon, Drive Suite,	COMMERCE INSURANCE	100.0000	100.0000	(A)	(7)
	200 Miami (E.E.U.U)

127 Consolidated Annual Accounts 2023

		Participation in Capital			Consolidati	Integration
Name	Address		Percentage		on	method for
		Holder	2023	2022	method	Solvency
	4301 Hacienda Drive, Suite 200,	ACIC HOLDINGS	100.0000	100.0000	(A)	(7)
THE COMMERCE WEST	Pleasanton,
INSURANCE COMPANY	CA 94588 (EE.UU.)
	211 Main Street, Webster,	COMMERCE INSURANCE	100.0000	100.0000	(A)	(7)
BIGELOW & OLD WORCESTER, LLC	MA 01570 (EE.UU.)
	211 Main Street, Webster,	MAPFRE USA CORPORATION	100.0000	100.0000	(A)	(1)
BFC HOLDING CORPORATION	MA 01570 (EE.UU.)
	211 Main St, Webster,	MAPFRE USA CORPORATION	100.0000	100.0000	(A)	(7)
VERTI INSURANCE COMPANY	MA 01570 (EE.UU)
	4400 Easton Commons Way, Suite	MAPFRE USA CORPORATION	68.3800	68.3800	(F)(A)	(F)(7)
AUTO CLUB MAPFRE INSURANCE	125 Columbus, OH 43219
		MAPFRE ASISTENCIA, S.A.	100.0000	100.0000	(A)	(1)
MAPFRE ASSISTANCE USA INC.	7300 Corporate Center Drive, Suite 601 Miami, FL 33126 (E.E.U.U.)
		MAPFRE ASSISTANCE USA INC	100.0000	100.0000	(A)	(1)
MAPFRE WARRANTY CORPORATION OF FLORIDA	5959 Blue Lagoon Drive, Suite 400 Miami, FL 33126 (E.E.U.U.)
		MAPFRE ASSISTANCE USA INC	100.0000	100.0000	(A)	(1)
CENTURY AUTOMOTIVE	6565 Americas Parkway NE. Suite 1000. Albuquerque
SERVICES COMPANY	NM 87110 (E.E.U.U.)
	7300 Corporate Center Drive,	MAPFRE ASSISTANCE USA INC.	100.0000	100.0000	(A)	(1)
FEDERAL ASSIST COMPANY	Suite 601 Miami
	Florida 33126 (U.S.A.)
	Urb. Tres Monjitas Industrial 297 MAPFRE INTERNACIONAL, S.A.		100.0000	100.0000	(A)	(1)
MAPFRE PRAICO CORPORATION	Avda.Carlos Chardón Hato Rey
	San Juan (Puerto Rico)
	Urb. Tres Monjitas Industrial 297 MAPFRE PRAICO CORPORATION		100.0000	100.0000	(A)	(1)
MAPFRE PRAICO INSURANCE	Avda.Carlos Chardón Hato Rey
COMPANY	San Juan (Puerto Rico)
	Urb. Tres Monjitas Industrial 297 MAPFRE PRAICO CORPORATION		100.0000	100.0000	(A)	(1)
MAPFRE PAN AMERICAN INSURANCE COMPANY	Avda.Carlos Chardón Hato Rey
	San Juan (Puerto Rico)
	Urb. Tres Monjitas Industrial 297 MAPFRE PRAICO CORPORATION		100.0000	100.0000	(A)	(1)
MAPFRE INSURANCE AGENCY OF PUERTO RICO, INC.	Avda.Carlos Chardón Hato Rey
	San Juan (Puerto Rico)
	Urb. Tres Monjitas Industrial 297 MAPFRE PRAICO CORPORATION		100.0000	100.0000	(A)	(1)
MAPFRE FINANCE OF PUERTO RICO CORP.	Avda.Carlos Chardón Hato Rey
	San Juan (Puerto Rico)
	Urb. Tres Monjitas Industrial 297 MAPFRE PRAICO CORPORATION		100.0000	100.0000	(A)	(1)
MAPFRE LIFE INSURANCE COMPANY OF PUERTO RICO	Avda.Carlos Chardón Hato Rey
	San Juan (Puerto Rico)
MAPFRE SOLUTIONS, INC	Urb. Tres Monjitas Industrial 297 MAPFRE PRAICO CORPORATION		100.0000	100.0000	(A)	(1)
	Avda.Carlos Chardón Hato Rey
	San Juan (Puerto Rico)
		EMEA
	Rheinstraße 7a	MAPFRE INTERNACIONAL, S.A.	100.0000	100.0000	(A)	(1)
VERTI VERSICHERUNG AG	14513 Teltow
	(Alemania)

128 Consolidated Annual Accounts 2023

		Participation in Capital			Consolidati	Integration
Name	Address		Percentage		on	method for
		Holder	2023	2022	method	Solvency
		Via Alessandro Volta, 16 MAPFRE INTERNACIONAL, S.A.	100.0000	100.0000	(A)	(1)
VERTI ASSICURIZIONI S.P.A.	20093 Cologno Monzese
	MI (Italia)
	Middle Sea House	MAPFRE INTERNACIONAL, S.A.	55.8325	55.8325	(A)	(1)
MAPFRE MIDDLESEA P.L.C.	Floriana JTL, 16 (Malta)
	Middle Sea House	MAPFRE MIDDLESEA INSURANCE P.L.C.	50.0000	50.0000	(A)	(1)
MAPFRE M.S.V. LIFE P.L.C.	Floriana FRN 9010 (Malta)
	4th Floor Development House	MAPFRE MIDDLESEA INSURANCE P.L.C.	100.0000	100.0000	(A)	(1)
BEE INSURANCE	st.Anne Street Floriana FRN 9010 (Malta)
MANAGEMENT LTD	Pjazza Papa Giovanni XXIII,	MAPFRE M.S.V. LIFE P.L.C.	100.0000	100.0000	(A)	(4)
	Floriana, FRN 1420,(Malta)
	Middle Sea House, St Publius	MAPFRE MIDDLESEA	50.0000	50.0000	(B)	(10)
CHURCH WARF PROPERTIES	Street Floriana FRN 1442 (Malta)	INSURANCE P.L.C.
		MAPFRE M.S.V. LIFE P.L.C.	50.0000	50.0000
EURO GLOBE HOLDINGS	Middle Sea House, St Publius	MAPFRE MIDDLESEA	100.0000	100.0000	(B)	(10)
LIMITED	Street Floriana FRN 1442 (Malta)	INSURANCE P.L.C.
	4th Floor Development House	BEE INSURANCE	100.0000	100.0000	(A)	(1)
EUROMED RISKS SOLUTIONS LIMITED	st.Anne Street Floriana FRN 9010 (Malta)	MANAGEMENT LTD
	Yenişehir Mah. Irmak Cad. No:11.	MAPFRE INTERNACIONAL, S.A.	99.7450	99.7450	(A)	(1)
MAPFRE SIGORTA, A.S.	34435
	Salipazari Istanbul (Turquía)
	Yenişehir Mah. Irmak Cad. No:11.	MAPFRE SIGORTA, A.S.	99.7778	99.7778	(A)	(1)
MAPFRE YASAM SIGORTA, A.S.	34435
	Salipazari Estambul (Turquía)
	Çevreyolu Caddesi No.2	MAPFRE SIGORTA, A.S.	51.0000	51.0000	(A)	(1)
GENEL SERVIS YEDEK PARCA DAGITIM TICARET A.S.	34020 Bayrampaşa
	Estambul ( Turquía)
		ASSISTANCE
	Ctra. Pozuelo, 52	MAPFRE, S.A.	99.9970	99.9970	(A)	(1)
MAPFRE ASISTENCIA COMPAÑÍA INTERNACIONAL	Majadahonda	MAPFRE ESPAÑA, S.A.	0.0030	0.0030
DE SEGUROS Y REASEGUROS, S.A.
	Madrid (España)
	Edifício Europa,	MAPFRE ASISTENCIA, S.A.	100.0000	100.0000	(A)	(1)
IBERO ASISTENCIA, S.A.	Av. José Malhoa, 16 F, 7º, 1070-159
	Lisboa, (Portugal)
	Alameda Rio Negro 503, 24º andar,	MAPFRE ASISTENCIA, S.A.	99.9990	99.9990	(A)	(1)
MAPFRE ASSISTENCIA LTDA	sala 2414 Barueri/SP, CEP 06454-000	MAPFRE BRASIL PARTICIPAÇOES, S.A.	0.0010	0.0010
	São Paulo (Brasil)
	Immeuble Tamayouz, 4éme Etage,	MAPFRE ASISTENCIA, S.A.	49.0000	49.0000	(A)	(1)
AFRIQUE ASSISTANCE, S.A.	1082 Centre Urbain Nord Tunis
	1002 ( Túnez )
	4ta transversal de Motecristo, Edificio Axxa, Planta Baja, Los Dos	MAPFRE ASISTENCIA, S.A.	99.9980	99.9980	(A)	(1)
SERVICIOS GENERALES VENEASISTENCIA, S.A.		MAPFRE RE, S.A.	0.0020	0.0020
ANDIASISTENCIA COMPAÑÍA	Carrera 14 N 96 -34 Piso 2	MAPFRE ASISTENCIA, S.A.	98.0900	98.0900	(A)	(1)
DE ASISTENCIA DE LOS ANDES, S.A.S	Bogotá (Colombia)	IBEROASISTENCIA S.A.	1.9100	1.9100

129 Consolidated Annual Accounts 2023

		Participation in Capital			Consolidati	Integration
Name	Address		Percentage		on	method for
		Holder	2023	2022	method	Solvency
	Lavalle 344/346/348, PB y 3º	MAPFRE ASISTENCIA, S.A.	98.4200	98.4200	(A)	(1)
IBEROASISTENCIA,	Ciudad de Buenos Aires	IBEROASISTENCIA S.A.	1.5800	1.5800
ARGENTINA S.A.	(Argentina)
	Av.Apoquindo 4499	MAPFRE ASISTENCIA, S.A.	99.0000	99.0000	(A)	(1)
SUR ASISTENCIA, S.A.	Santiago de Chile (Chile)	IBEROASISTENCIA S.A.	1.0000	1.0000
	Ctra, Pozuelo, 52	MAPFRE ASISTENCIA, S.A.	99.9300	99.9300	(A)	(1)
IBEROASISTENCIA, S.A.	Majadahonda. Madrid (España)	MAPFRE ESPAÑA, S.A.	0.0700	0.0700
	22-26 Prospect Hill Galway	MAPFRE ASISTENCIA, S.A.	100.0000	100.0000	(A)	(1)
IRELAND ASSIST, LTD	(Irlanda)
	473 Messogion Avenue 15343	IBEROASISTENCIA S.A.	25.0000	25.0000	(C)	(3)
EUROSOS ASSISTANCE, S.A.	Agia Paraskevi.		—	—
	Atenas (Grecia)
	Avda. Tiradentes Esq.Pres.	MAPFRE ASISTENCIA, S.A.	83.5823	83.5823
	González. Edif.La Cumbre. Ens. Naco.Domingo				(A)	(1)
CARIBE ASISTENCIA, S.A.	(República Dominicana)
	Avda.Doce de Octubre, N42 -562	MAPFRE ASISTENCIA, S.A.	99.0000	99.2600	(A)	(1)
ECUASISTENCIA, S.A.	N42 -562 y Luis Cordero	ANDIASISTENCIA S.A.	1.0000	0.7399
	Quito (Ecuador)
	Av. Insurgentes Sur no.2453 Piso 15,	MAPFRE ASISTENCIA, S.A.	99.9998	99.9998	(A)	(1)
	Col. Tizapán San Angel Deleg.
MÉXICO ASISTENCIA, S.A.
	Alvaro Obregón.
	C.P. 01090 México D.F. (México)
	Costa del Este – Avenida la	MAPFRE ASISTENCIA, S.A.	84.0000	84.0000	(A)	(1)
	Rotonda, Torre GMT, Piso 1 – Edificio Mapfre Ciudad
PANAMÁ ASISTENCIA, S.A.	de Panamá (Panamá)
	Plaza Cagancha 1335, oficina 901	MAPFRE ASISTENCIA, S.A.	97.3317	97.3317	(A)	(1)
URUGUAY ASISTENCIA,S.A.	Montevideo (Uruguay)	IBEROASISTENCIA S.A.	2.6683	2.6683
	8a. Ave. 3-80 Zona 14	MAPFRE ASISTENCIA, S.A.	99.9920	99.9920	(A)	(1)
QUETZAL ASISTENCIA, S.A.	Edificio La Rambla II nivel 5 Of. 5-2
	(Guatemala)
	Alameda Roosevelt No. 3107	MAPFRE ASISTENCIA, S.A.	99.9900	99.9900	(A)	(1)
EL SALVADOR ASISTENCIA,
S.A.	Edificio La Centro Americana, Nivel 7.	IBEROASISTENCIA S.A.	0.0100	0.0100
	San Salvador (El Salvador)
	Edificio Invercasa, Torre II, 5to. piso, modulo # 501	MAPFRE ASISTENCIA, S.A.	100.0000	100.0000	(A)	(1)
NICASSIST, S.A.
	Managua, (Nicaragua)

130 Consolidated Annual Accounts 2023

		Participation in Capital			Consolidati	Integration
Name	Address Holder	Percentage		on	method for
			2023	2022	method	Solvency
	Strada Trossi 66 13971	MAPFRE ASISTENCIA, S.A.	100.0000	100.0000	(A)	(1)
MAPFRE WARRANTY S.P.A.
	Verrone (Italia)
	Suite 603, Zhongyu Plaza,	MAPFRE ASISTENCIA, S.A.	100.0000	100.0000	(A)	(1)
	A6 Gongti North Road, Chaoyang
ROAD CHINA ASSISTANCE Co, LTD	District, Beijing, PR (China)
	602, Thawar Apartment, Opp.	MAPFRE ASISTENCIA, S.A.	99.6300	99.6300	(A)	(1)
INDIA ROADSIDE ASSISTANCE	Heena Residency Main Carter Road, Kasturba Rd,	IBEROASISTENCIA S.A.	0.3700	0.3700
PRIVATE LIMITED	Borivali (East), Mumbai 400066-Maharashtra (India)
	45, Rue des Freres Adessalami	MAPFRE ASISTENCIA, S.A.	60.3000	60.3000	(A)	(1)
ROADSIDE ASSIST ALGERIE SPA	5eme étage. Vieux Kouba.	IBEROASISTENCIA S.A.	0.4000	0.4000
	Alger 16050 (Argelia)	CONSULTING SOL.Y TEC. SIAM S.A.	0.3000	0.3000
	18th Floor, Apartment No. 1804 of	MAPFRE ASISTENCIA, S.A.	98.0000	98.0000	(A)	(1)
NILE ASSIST	Holiday Inn Maadi Hotel building Comeish Maadi	IBEROASISTENCIA S.A.	1.0000	1.0000
	Cairo - (Egipto)	CONSULTING SOL.Y TEC. SIAM S.A.	1.0000	1.0000
	18ª, Europa Centre, John Lopez Str	MAPFRE ASISTENCIA, S.A.	51.0000	51.0000	(A)	(1)
MIDDLESEA ASSIST LIMITED	Floriana, FRN 1400, (Malta)	MIDDLESEA INSURANCE P.L.C.	49.0000	49.0000
PARAGUAY ASISTENCIA CIA. DE SERVICIOS S.A.	Av.Mariscal López, 930	MAPFRE ASISTENCIA, S.A.	98.9500	98.9500	(A)	(1)
	Asunción (Paraguay)	IBEROASISTENCIA S.A.	1.0500	1.0500
GENYO SERVIZI E SOLUZIONI S.R.L	Corso Italia, n. 22 - 20122 Milano	MAPFRE ASISTENCIA, S.A.	50.0000	—	(G)(E)	(G)(3)
		REINSURANCE
	Paseo de Recoletos, 25	MAPFRE, S.A.	94.2086	94.2086	(A)	(1)
MAPFRE RE COMPAÑÍA DE REASEGUROS, S.A.	Madrid (España)	MAPFRE ESPAÑA, S.A.	0.0003	0.0003
	Avda.Apoquindo, 4499	MAPFRE RE, S.A.	99.9900	99.9900	(A)	(1)
MAPFRE CHILE REASEGUROS, S.A.	Santiago de Chile (Chile)
	Avda.Apoquindo, 4499	MAPFRE CHILE REASEGUROS	99.8467	99.8467	(A)	(1)
CAJA REASEGURADORA DE CHILE S.A.	Santiago de Chile (Chile)	S.A.
	Bouchard 547 piso 14	MAPFRE CHILE REASEGUROS	99.9960	99.9960	(A)	(1)
C R ARGENTINA, S.A.	Buenos Aires (Argentina)	S.A.
	Rua Olimpiadas, 242,5º andar	MAPFRE RE, S.A.	99.9999	99.9999	(A)	(1)
MAPFRE RE DO BRASIL	conjunto 52 Vila Olimpia;	MAPFRE ASSISTENCIA LTDA	0.0001	0.0001
COMPAÑÍA DE REASEGUROS S.A.	São Paulo (Brasil)
MAPFRE RE ESCRITORIO DE	Rua Olimpiadas, 242,5º andar	MAPFRE RE, S.A.	99.9999	99.9999	(B)	(10)
REPRESENTACION COMPAÑÍA DE REASEGUROS	conjunto 52 Vila Olimpia;	MAPFRE RE DO BRASIL S.A.	0.0001	0.0001
	São Paulo (Brasil)
INMOBILIARIA PRESIDENTE FIGUEROA ALCORTA, S.A.	Bouchard 547 piso 14 B. Aires (Argentina)	MAPFRE RE, S.A.	99.9985	99.9985	(B)	(10)
	100 Campus Drive	MAPFRE RE, S.A.	100.0000	100.0000	(A)	(1)
REINSURANCE MANAGAMENT INC.	07932 New Jersey
	(E.E.U.U.)
	Ctra. Pozuelo, 50.	MAPFRE RE, S.A.	100.0000	100.0000	(A)	(3)
MAPFRE EURO BONDS FUND	Majadahonda (Madrid)

		Participation in Capital			Consolidati	Integration
Name	Address		Percentage		on	method for
		Holder	2023	2022	method	Solvency
	122 Cherry Tree Hill Road	MAPFRE RE, S.A.	100.0000	100.0000	(A)	(1)
MAPFRE RE VERMONT CORPORATION	05651 East Montpelier
	Vermont (E.E.U.U.)
	Paseo de Recoletos, 25	MAPFRE RE, S.A.	100.0000	100.0000	(A)	(1)
RISK MED SOLUTIONS, S.L.	Madrid (España)
		OTHER
MAPFRE INTERNACIONAL	Ctra. Pozuelo, 52. Majadahonda.	MAPFRE, S.A.	99.9999	100.0000	(A)	(1)
S.A.	Madrid (España)	MAPFRE GLOBAL RISK AGENCIA	0.0001
	Avda. 18 de Julio, 841	MAPFRE, S.A.	100.0000	100.0000	(A)	(1)
MAPFRE INVESTMENT S.A.	Montevideo (Uruguay)
LA FINANCIERE RESPONSABLE	52, rue dePonthieu	MAPFRE S.A.	51.0000	24.9500	(A)	(1)
	75008 Paris (Francia)
STABLE INCOME REAL STATE	15, rue Bender	MAPFRE S.A.	100.0000	100.0000	(A)	(10)
FUN GP S.A.R.I.	L-1229 (Luxemburgo)
	Ctra. Pozuelo, 52. Majadahonda.	MAPFRE, S.A.	100.0000	100.0000	(A)	(1)
MAPFRE GLOBAL RISK AGENCIA DE SUSCRIPCION	Madrid (España)
SOLUNION SEGUROS	Avda.General Perón,40	MAPFRE S.A.	50.0000	50.0000	(E)	(3)
COMPAÑÍA INTERNACIONAL DE SEGUROS Y REASEGUROS S.A. (In 2022 Solunón Seguros de Crédito S.A)	Madrid (España)
ALMA MUNDI INSURTECH	Plaza Santa Bárbara, 2	MAPFRE S.A.	24.9400	26.3992	(C)	(3)
FUND, FCRE	Madrid (España)
ALMA MUNDI INSURTECH II FUND, FCRE	Plaza Santa Bárbara, 2	MAPFRE S.A.	35.4700	35.4700	(G)(C)	(F)(3)
	Madrid (España)
SANTANDER MAPFRE HIPOTECA INVERSA	Calle Juan Ignacio Luca de Tena, 11	MAPFRE S,A,	50.0000	50.0000	(F)(C)	(F)(3)
EFC, S.A.	Madrid (España)

CONSOLIDATION METHOD OR PROCEDURE	INTEGRATION METHOD FOR SOLVENCY CALCULATION
(A) Subsidiaries consolidated by global integration	(1) Full consolidation
(B) Subsidiaries excluded from consolidation	(3) Adjusted equity-accounting
(C) Equity-accounted associated and investee companies	(4) Sectorial standards
(D) Associated and investee companies excluded from consolidation	(7) Local standards
(E) Joint ventures consolidated using the equity method	(9) Exclusion from the scope of group supervision, pursuant to article 214 of Directive 2009/138/EC
(F) Companies added to the scope of consolidation in 2022	(10) Consolidated as an equity investment
(G) Companies added to the scope of consolidation in 2023	(*) MAPFRE holds the majority voting rights in the Annual General

(H) Companies removed from the scope of consolidation in 2023

INTEGRATION METHOD FOR SOLVENCY CALCULATION

• (1) Full consolidation
• (3) Adjusted equity-accounting

Shareholders' Meeting

APPENDIX 2. INFORMATION FOR CORPORATE ACTIVITY AT DECEMBER 31, 2023

Name	Effective tax rate	Activity
MAPFRE ESPAÑA COMPAÑÍA DE SEGUROS Y REASEGUROS S.A.	25% (1)(2)	Insurance and reinsurance
VERTI ASEGURADORA, COMPAÑIA DE SEGUROS Y REASEGUROS, S.A	25% (1)(2)	Insurance and reinsurance
FUNESPAÑA, S.A.U.	25% (1)	Burial services
FUNESPAÑA DOS, S.A.	25% (1)	Burial services
SANTANDER MAPFRE SEGUROS Y REASEGUROS S.A	25%(2)	Insurance and reinsurance
MAPFRE INMUEBLES, S.G.A.	25% (1)(2)	Real Estate
MAPFRE TECH, S.A.	25% (1)(2)	IT
MAPFRE VIDA SOCIEDAD ANÓNIMA DE SEGUROS Y REASEGUROS SOBRE LA VIDA HUMANA	25% (1)(2)	Insurance and reinsurance
MAPFRE INVERSIÓN SOCIEDAD DE VALORES S.A.	25% (1)(2)	Investment company
BANKINTER SEGUROS DE VIDA, S.A.	25%(2)	Insurance and reinsurance
MAPFRE ASISTENCIA COMPAÑÍA INTERNACIONAL DE SEGUROS Y REASEGUROS, S.A.	25% (1)(2)	Insurance and reinsurance
MAPFRE RE COMPAÑÍA DE REASEGUROS, S.A.	25% (1)(2)	Reinsurance

TAX GROUP

(1) Company belonging to Tax Group 9/85

(2) Company belonging to VAT Group 87/10

CONSOLIDATED MANAGEMENT REPORT

YEAR 2023

MAPFRE S.A.

CONSOLIDATED MANAGEMENT REPORT 2023 TABLE OF CONTENTS

Organization overview	136
Business performance and results	139
Liquidity and capital resources	160
Main risks and uncertainties	166
Significant events after the fiscal year-end	168
Information on expected performance	168
R&D+i activities	172
Acquisition and disposal of treasury stock	174
Other relevant information	174
Annual Corporate Governance Report	187
Annual Report on Directors' Remuneration	188

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 (APM) used in this report, which correspond to those financial measures that are used but not defined or explained in the applicable financial information framework, can be consulted at the following web page: https:// mapfre.com/media/shareholders/2023/2023-12 alternate-performance-measures.pdf.

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

MAPFRE's Vision is to be "YOUR TRUSTED INSURANCE COMPANY" for all of our clients worldwide, achieving this through a global presence and offering a wide range of insurance and reinsurance products and services. We aim to become a leader in the markets we operate in by executing on a sustainable, proprietary, and differentiated business model that is based on transformation and innovation. The overriding objective is to deliver profitable growth with a clear and decisive focus on the client, both private and enterprise, creating relationships founded on fairness and transparency, with a multi-channel approach and a firm vocation for service.

Our corporate Purpose, the company's day-to-day raison d'être, is defined when we tell our customers that "we are by your side every step of the way, accompanying you to move forward with peace of mind, contributing to the development of a more sustainable and supportive society." In other words, we are committed to helping our customers now and in the future. We are ready to support them and give them what they need, today and tomorrow, just as we have been doing for many years. In an uncertain world, we are defined by the capacity of more than 250,000 employees, collaborators, and providers delivering the best service, innovating, adapting to customers' needs, and being there when people need us.

We execute on this commitment through the following Values, which help us make good on our Purpose and achieve the Vision of the company:

-Solvency: financial strength with sustainable results over time and full capacity to meet all obligations to stakeholders.

-Integrity: ethical action as the axis of behavior for everyone (managers, employees, agents and collaborators), with a socially responsible approach in all activities and long-term commitments.

-Service: with the objective of delivering excellence and continuous improvement, aimed at creating more value for the client, and making service quality the relationship with the client differentiating elements.

-Innovation: differentiation as a key aspect to delivering constant growth and improvement, with technology at the service of businesses and its objectives.

-Multicultural and diverse team: attracting and retaining the best global talent to the company, and with the full involvement of employees, managers, agents and other collaborators with the MAPFRE project.

MAPFRE's business model, which promotes profitable growth, is also geared toward contributing to the social development of the countries where we are present.

Accordingly, MAPFRE:

• Is firmly committed to growth in terms of both business volume and geographic development, generating suitable and sufficient profitability from its activities.
• 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.
• Deploys a global management model with ample capacity for local implementation, ensuring a 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.

ORGANIZATIONAL STRUCTURE AND GOOD GOVERNANCE

A. ORGANIZATIONAL STRUCTURE

MAPFRE is a multinational company chiefly devoted to insurance and reinsurance activities, and operates in 38 countries worldwide.

The Group's parent company is the holding company MAPFRE S.A., the shares of which are listed on the Spanish stock exchange. At year-end, the company was part of the IBEX 35, IBEX Top Dividend, FTSE All-World, FTSE Developed Europe and the MSCI World Small Cap Index, Bloomberg Europe 500 Insurance Index and Dow Jones Spain Titans 30 Index Euro, as well as the FTSE4Good, FTSE4Good IBEX, Bloomberg Gender Equality Index and IBEX Gender Equality Index sustainability indices.

MAPFRE S.A. is a subsidiary of CARTERA MAPFRE, S.L. Sociedad Unipersonal, which is wholly controlled by Fundación MAPFRE.

During 2023, the Group conducted its business activities through an organizational structure made up of four Business Units (Insurance, Assistance, Global Risks, and Reinsurance) and five Regional Areas¹ : Iberia (Spain and Portugal), Brazil, LATAM South-Central (the sub-region of Central America and the Dominican Republic, Argentina, Chile, Colombia, Ecuador, Paraguay, Peru, Uruguay, and Venezuela), North America (the United States and Puerto Rico), and EMEA (Italy, Germany, Turkey, and Malta), as well as Mexico, which is considered a strategic country.

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 integrated within MAPFRE RE.

In 2023 the Assistance Unit has unified its brand as MAWDY in all markets.

The activities of the various Business Units are supplemented by those of the Corporate Areas² (Internal Audit, Strategy and M&A, Finance and Resources, Investment, Business, People and Organization, External Relations and Communication, General Counsel and Legal Affairs, Operational Transformation, Technology, and Operations), which have global competences for all MAPFRE companies in the world 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 has 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 and Sustainability).

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.

137 Consolidated Management Report 2023

¹ As of January 2024, the entire insurance business consists of three geographical areas: Iberia (Spain and Portugal), International (Brazil, LATAM South-Central, Mexico, EMEA, and Global Risks), and North America (United States and Puerto Rico).

² As of January 1, 2024, the corporate areas are: Internal Audit, Finance and Resources, Investment, Business, People, Strategy and Sustainability, People and Organization, External Relations and Communication, General Counsel and Legal Affairs, Operational Transformation, Technology, and Operations.

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 have 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 organizational structure in place from 2024 is shown in the accompanying chart.

*Reporting functionally to the Audit and Compliance Committee

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 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 policies³ .

MAPFRE complies fully with 90.62%, and fully or partially with 96.87%, of the recommendations set out in the Spanish National Securities Market Commission's Good Governance Code for listed companies at December 31, 2023.

138 Consolidated Management Report 2023

³ The Institutional, Business and Organizational Principles of the MAPFRE Group and other corporate regulations are available on the Company's website (www.mapfre.com).

The Annual Corporate Governance Report 2023 offers a detailed explanation of the structure of MAPFRE's governance system and its operation in practice⁴ , providing the minimum content established by Article 540 of the Recast Text of the Spanish Companies Act.

OPERATIONAL FRAMEWORK

MAPFRE is committed to multichannel distribution, and adapts its commercial structure to the legislation in the different countries it operates in.

Customer orientation, the global product offering and adaptation to the legal and commercial particularities of each of the markets in which it is present are some of the hallmarks of the successful business model.

MAPFRE's distribution network is the largest in the insurance sector in Spain and one of the largest for a financial group in Latin America.

At the close of 2023, the Company's distribution network consisted of 4,741 proprietary offices (4,814 in 2022).

MAPFRE's own network is complemented by the distribution capacity provided by agreements with different entities, and especially those of bancassurance (Banco Santander, Bankinter, Banco do Brasil, Bhd Leon and Bank of Valleta, among others). During 2023, MAPFRE distributed its products through 7,541 bancassurance offices (7,573 in 2022).

During fiscal year 2023, 81,000 intermediaries, including agents, delegates and brokers collaborated in the distribution of MAPFRE's products.

Within insurance activity, MAPFRE is the largest Spanish insurer in the world, with Non-Life and Life market shares in the Spanish market of 13.8% and 7.5% respectively. In addition, it is the ninth largest insurance group in Europe by premium volume, and is established in practically every county in Latin America, where it is the leading multinational insurance group, with a market share of 5.3% (as per figures for 2022, the latest available). Likewise, the Group's reinsurer (MAPFRE RE) is ranked 17th in the world reinsurance ranking⁵ .

139 Consolidated Management Report 2023

⁴ For further information, please consult the Annual Corporate Governance Report 2023, which forms an integral part of this Consolidated Management Report.

⁵ Source: S&P Global Ratings

BUSINESS PERFORMANCE AND RESULTS

ECONOMIC CONTEXT AND PERFORMANCE OF INSURANCE MARKETS

Economic context

The second half of 2023 was marked by tensions in the Middle East, with the resurgence of the Gaza-Israel conflict. This event is keeping that region and the West on high alert, especially due to the potential escalation of the conflict. The situation serves as a reminder that geopolitical tensions can have significant implications for the global economic context, as they influence supply risk in energy and commodity markets, and consequently price dynamics.

Against this backdrop, the price of Brent oil ended the year at USD 77/barrel after having rebounded in the summer and prevented further drops in inflation. Oil price levels are affected by a complex balance of forces, including: i) geopolitical uncertainty; ii) the global economic slowdown; iii) the energy transition process; and iv) production adjustments agreed by the Organization of Petroleum Exporting Countries (OPEC).

Economic activity in 2023 brought positive surprises in some countries, including the United States and Spain (but not Germany), thanks to the resilience of private consumption, accumulated savings, the use of credit, government spending, the effects of inflation reduction investment plans, such as the Inflation Reduction Act (United States), and the Recovery and Resilience Facility (Eurozone). Employment levels also remained stronger than expected in the face of tightening financial conditions.

Inflation control made good progress. However, in many countries, inflation picked up in September-October. This suggests that getting it down to the central banks' target levels will be harder than anticipated, as the base effects are disappearing, support measures are expiring, energy costs are rising, employment remains strong, and salaries are being updated.

To a large extent, central banks have completed the interest rate hike cycle. Rates are now expected to remain high, at least until the second half of 2024. It has been confirmed that the transmission of monetary policy is strong, as it's affecting credit conditions. This can be seen in the performance of both the Euribor (3.51% at year end) and in lending conditions for companies and households. The impact is reflected in the granting of mortgages and vehicle loans, as well as credit in the residential construction sector, while slowly spreading to other sectors, such as industry.

In December, the U.S. Federal Reserve put interest rates at 5.50% and changed the tone of its policy, forecasting at least three rate cuts in 2024 (75 basis points). The markets are discounting twice as many cuts, 150 basis points from March onward, and interest rates are expected to stand at 4.00% by the end of 2024. The likelihood of recession in the next 12 months, according to the consensus of analysts, has fallen in the United States to 50%, in the Eurozone to 65%, and in Germany to 75%.

In the eurozone, the European Central Bank (ECB) also halted its interest rate hikes in October, leaving the main refinancing rate at 4.50% and the deposit facility at 4.00%. Regarding the balance sheet, the ECB will gradually reduce the Asset Purchase Program (APP), while in the Pandemic Emergency Purchase Program (PEPP), maturing principal payments will continue to be reinvested until at least the end of 2024. The ECB will adapt the management of its balance sheet to avoid interfering with the monetary policy bias.

In the sovereign bond markets, interest rates across the curve reflect the weighting of different factors: i) weaker economic prospects; ii) the weight of interest in the budgets of the countries; iii) expected large issuing volumes; and to the contrary, iv) anticipated rate cuts by central banks in 2024, which are leading investors to seek longer durations.

For 2024, the dollar is expected to lose some value against the euro, should the Federal Reserve lower rates more quickly than the ECB.

A more detailed analysis of the most important markets in which MAPFRE operates is presented here.

Spain

Spain's GDP grew by an estimated 2.5% in 2023. It outperformed other European economies due to its strong exports, the positive effect of European Union funds, aid for energy costs, and resilient consumption in a context of tightening financial conditions.

Inflation stood at 3.1% at the end of the year, rebounding from 1.9% in June, among other factors, due to base effects that are no longer favorable. Inflation has also moderated month-on-month, but its contribution to the rise of the headline index continues. Unless extended, fuel aid will end in January 2024, which may once again strain price dynamics.

While 2023 was good for economic activity, the transmission of monetary policy is strong. The Euribor exceeded 4.2% in September but eased to 3.5% by the end of the year. The tightening of financial conditions is reflected in the decline of more than 20% in mortgage approvals. As a result, the outstanding mortgage balance has fallen below 2006 levels.

As far as outlook indicators are concerned, the purchasing managers' indexes (PMIs) remained marginally positive, with the composite and services indexes at 50.4 and 51.5 points, respectively, while the manufacturing index continued to anticipate worsening conditions (46.2 points in December) and stood in the contraction zone. Consumer confidence remained very negative (-18.6), as a result of poor prospects related to the loss of purchasing power and the tightening of credit conditions.

Finally, the IBEX 35 Index gained 22.8%, finishing the year at 10,095 points.

United States

The U.S. economy performed better than expected in 2023, with 2.5% estimated growth. This was due, among other factors, to the positive effect of spending packages implemented by the government to cushion the impact of inflation (Inflation Reduction Act), as well as the fact that households used savings to maintain their spending level.

The Federal Reserve held interest rates stable at 5.50% from June onward, awaiting the impact on economic activity of the hikes made so far. The Federal Reserve is maintaining its restrictive rhetoric in order to moderate inflation expectations, but the market is already discounting interest rate cuts from mid-2024.

With regard to the forecast of future economic activity levels, the December PMIs were marginally positive, with the composite indicator at 50.9 points, manufacturing at 47.9, and services at 51.4.

The tightening of financial conditions is being passed on to the cost of mortgages, the cost of borrowing for companies and consumers, and specifically automobile loans. However, credit cards volume is

accelerating as many households turn to this from of credit to help fund regular consumption.

The 10-year Treasury bond yield reached 5.00% in October before moderating to 3.9% at the end of the year, as investors' demand for long-term instruments is returning thanks to the prospect of rate cuts. The rate curve remains heavily inverted between six months and five years, while for longer periods the slope is already normalizing.

The CPI for December in the United States stood at 3.4%, with a rebound trend (+ 0.3% MoM). Core inflation fell to 3.9%.

The dollar began to lose ground to the euro in the last few months of the year, given the prospect of interest rate cuts starting earlier in the United States than in the Eurozone. In 2023, the dollar depreciated by 3.0% and closed at 1.10 EUR/USD.

The S&P500 index finished the year up 24.2% at 4,770 points.

Brazil

The Brazilian economy performed better than initially expected, with estimated growth of 3.1% in 2023. A certain slowdown is anticipated for 2024 due to restrictive interest rates and a weaker external context.

Brazil's interest rate cycle is more advanced than that of developed economies, so it started to lower rates in August, almost a year before this is expected to happen in the United States. Inflation stood at 4.6% at the end of the year, rebounding from 3.2% in June. Consumption is estimated to have grown by 3.1% in the year and exports by 8.6%, while investment decreased by approximately 3.4%.

The PMIs for December were positive, with the composite indicator at 50.0 points and services indicator at 50.5. However, manufacturing continues to contract at 48.4 points. Consumer confidence has recovered to 2018–2019 levels, but has moderated in the final stretch of the year.

In 2023, the Brazilian real appreciated 5.2% against the euro, ending at 0.1867 euros.

The BOVESPA index ended the year at around 134.185 points, a 22.3% increase.

Mexico

The Mexican economy grew by an estimated 3.3% in 2023, a positive surprise thanks to the strength of investment, with anticipated growth of more than 10%, helping to reinforce the Mexican peso. The nearshoring process (relocation of supply chains, especially to the United States) also contributed to this situation, which is associated with a certain reversal of globalization after the world experienced significant interruptions in supply chains in 2022.

The slowdown in the U.S. economy, as well as the more restrictive financial conditions, suggests a loss of momentum for Mexico's economic growth in 2024. As inflation moderates and interest rates remain high, there is a monetary tightening in real terms that will affect activity levels.

The December manufacturing PMI was positive (52.0 points), and other industry surveys were also positive, except for anticipated factory order volume. Automobile sales and production have been recovering in the last two years. The construction sector is expanding greatly, especially infrastructure works.

Inflation in December stood at 4.7%, with core inflation at 5.1%. In addition, the price increases are beginning to be reflected in salaries, which in December increased 9% year-on-year, with a 9.7% increase in the private sector. The central bank's monetary policy interest rate stood at 11.25% at year-end 2023 after remaining stable since March.

The peso appreciated 11.2% against the euro throughout the year, finishing at 0.0534 euros.

The Mexican Stock Exchange gained 18.4%, finishing the year at 57,386 points.

Performance of insurance markets

Spanish market⁶

Throughout 2023, the Spanish insurance industry showed considerable momentum in the issuing of premiums, with a nominal increase of 18% to 76.5 billion euros. Economic growth, which exceeded forecasts, helped to drive the insurance business, where the main boost came from the Life line of business, which was up 36.3% in terms of premium volume, and a very favorable performance in Non-Life insurance, where revenue was up 6.8% compared to December 2022.

The rise in interest rates that began in 2022 is being reflected in guaranteed Savings insurance, which is gaining an appeal that it previously lacked. The statistics until December 2023 confirm this change of trend in Life Savings insurance, which became the driving force behind the growth of Spanish insurance during the year, with this modality in the Life segment increasing by 46.8%. At the other end of the spectrum, premium revenue from the Life Protection business fell by 2.8% at the end of 2023.

Furthermore, the main Non-Life business lines showed great dynamism throughout 2023. Automobile insurance, which started on the path to recovery in 2022, exceeded the growth rate obtained that year by three percentage points (pp), reaching 6.6%. The Health line continued the upward trend of recent years, with a 6.6% increase in premiums owing to the momentum of Expense Reimbursement, which grew by 9.0%, and Health Care, which grew by 6.6%. Multirisk insurance premiums rose 6.8% year-on-year, with Industrial (9.3%) and Homeowners and Condominiums (6.4%) standing out.

With regard to technical profitability, the Automobile line continues to be affected by the high inflation scenario that is continuing to cause an increase in costs, although an improvement in technical profitability is expected as upward pricing revisions materialize on the back of adapting insurance premiums to inflation and cost growth moderates. Health insurance and Multirisk insurance show some stability compared to the previous year.

Latin American markets

The Latin American insurance markets continued to show very positive growth rates in 2023, in local currency and at current prices, in both the Life and Non-Life segments. With the exception of Guatemala, all countries in the region enjoyed positive growth rates in Non-Life insurance, with double-digit growth in many cases. A very significant boost came from the Automobile line, which continues to be the main driver of growth in this segment. Other main lines, Fire and Health, also contributed strongly to the increase in Non-Life premiums. Life insurance also performed quite well, with increases in virtually all markets.

Premium revenue from the Brazilian insurance industry to September 2023 were up 8.4%. The Non-Life segment saw 10.8% growth in cumulative premiums, with a 12.3% increase in Automobile insurance. Life insurance rose by 7.0%.

⁶ Source: ICEA

Mexico presented growth of 14.2% n direct insurance premiums to September 2023, driven by both segments of the market, but mainly by Non-Life, which grew 16.2%.

Other markets

United States⁷

Premium income from the Life, Property & Casualty (P&C) and Health segments in the United States enjoyed a positive performance in the first half of 2023, with increases of 4.0%, 10.3% and 6.7%, respectively.

This behavior has been influenced by the increase in prices as a result of the continued hardness of the market due to inflation. Earnings suffered compared to the first half of 2022. Despite the significant price adjustment and underwriting measures taken by insurers, the P&C insurance business recorded a strong technical loss, which was offset by financial income to deliver a positive result.

Life insurance premiums and direct deposits issued improved by 4.0%

143 Consolidated Management Report 2023

⁷ Information obtained from the half-yearly reports of the National Association of Insurance Commissioners (NAIC) for the Property & Casualty, Life and Accident, and Health segments.

BUSINESS DEVELOPMENT

Revenues on operations

ITEM	DECEMBER 2023	DECEMBER 2022	Δ %
Insurance revenue	24,781.0	22,717.2	9.1 %
Reinsurance revenue	2,866.1	2,630.8	8.9 %
Financial income	4,961.2	4,583.1	8.2 %
Revenue from non insurance entities and other revenue	782.7	700.7	11.7 %
Total consolidated revenue	33,391.0	30,631.7	9.0 %

Figures in million euros

The Group's consolidated revenue reached 33.4 billion euros, up by 9%. This increase consolidates the trend of recent quarters and reflects both a significant increase in business volumes and an improvement in financial income.

Insurance revenue amounted to 24.8 billion euros, with an increase of 9.1%.

Non-Life insurance revenue grew by 6.9%, mainly due to the improvement in issuing in the General P&C, Health and Accident and Automobile insurance lines.

Life insurance revenue grew by 21.1%, driven by Life Savings in Spain, good technical performance in all geographies and strong financial income, especially in Latin America.

Earnings

The net result of 677.2 million euros includes the following unique events that occurred during the fiscal year.

• a. The occurrence of two relevant catastrophic events, the earthquake in Turkey and Hurricane Otis in Mexico, with an aggregate impact of 159 million euros. In 2022, there was a drought in the Paraná River basin with an impact of 113 million. In addition, the higher frequency of weatherrelated events in Europe had a net impact of more than 115 million euros over the figure for 2022.
• b. Net receipt of 46.5 million euros as a result of arbitration that followed the breach of the alliance with Bankia.
• c. The 75 million euros in goodwill impairment in insurance operations in the United States. This has had no impact on the generation of cash, solvency or the Group's ability to pay dividends.

d. Hyperinflation in Venezuela, Argentina and Turkey had a negative impact, net of taxes, of 47 million euros (41 million in 2022).

Balance sheet

Consolidated assets reached 54.9 billion euros in December 2023 and grew by 5.3% compared to the previous year, due to the increase in investment portfolios.

Equity stood at 9.6 billion euros at December 31, 2023, compared to 8.9 billion euros at December 31, 2022.

Key indicators

Return on shareholders' equity (ROE)

ROE is a key profitability index, represented by the proportion between the net profit attributable to the parent company (deducting the participation of noncontrolling interests) and average shareholders' equity, came in at 8.3% (9.2% excluding the impact of the goodwill impairment in the United States).

Management ratios

The combined ratio measures the impact of management costs and claims for a year on the premiums for that year. In the years 2023 and 2023 this ratio was at 96.6% and 96.5%, respectively.

Information by Business Unit

MAPFRE structures its business around the Insurance, Reinsurance, Global Risks and Assistance Units, with the Reinsurance and Global Risks Units integrated into MAPFRE RE.

Key figures

AREA / BUSINESS UNIT	Insurance revenue			Attributable result
	2023	2022	Δ %	2023	2022	Δ %
IBERIA	6,978.1	6,517.4	7.1%	341.4	187.0	82.6%
BRAZIL	4,823.7	4,234.6	13.9%	138.6	227.5	64.2%
OTHER LATAM*	4,451.0	4,202.6	5.9%	185.3	120.6	-34.9%
NORTH AMERICA	2,584.5	2,551.6	1.3%	(69.3)	14.4	120.8%
EMEA	1,179.1	1,139.5	3.5%	(73.2)	(39.4)	46.2%
TOTAL INSURANCE	20,016.3	18,645.7	7.4%	368.4	664.6	80.4%
REINSURANCE BUSINESS	8,016.8	6,953.2	15.3%	174.9	252.1	44.1%
ASISTENCIA - MAWDY	224.2	280.9	-20.2%	7.3	5.6	-22.2%
Holding, eliminations and other	(3,476.3)	(3,162.7)	-9.9%	13.0	(245.1)	0.0%
MAPFRE S.A.	24,781.0	22,717.2	9.1%	563.6	677.2	20.2%

Figures in million euros

*Includes Mexico and LATAM South-Center

**In 2022, the attributable result includes the "classification overlay" adjustment discussed in section "2.5 Comparison of information" of the annual accounts, in the amount of 152.4 million euros. In 2023, the attributable result includes the goodwill impairment in the U.S. in the amount of 75.0 million euros

Insurance Entities

IBERIA

IBERIA takes in the activity of MAPFRE ESPAÑA and its subsidiary in Portugal and the Life business activity managed by MAPFRE VIDA and its bancassurance subsidiaries.

Key figures

ITEM	DECEMBER 2023	DECEMBER 2022	Δ %
Investments, real estate and cash	22,923.8	21,001.0	9.2 %
Insurance contract liabilities	19,965.4	18,133.2	10.1 %
CSM	1,686.5	1,531.6	10.1 %
Shareholders' equity	3,256.8	3,080.4	5.7 p.p.

Figures in million euros

Information by country

REGION / COUNTRY	Insurance revenue			Attributable result
	DECEMBER 2023	DECEMBER 2022	Δ %	DECEMBER 2023	DECEMBER 2022	Δ %
IBERIA	6,978.1	6,517.4	7.1 %	341.4	187.0	82.6 %
SPAIN*	6,823.7	6,369.0	7.1 %	332.6	183.0	81.7 %
PORTUGAL	154.4	148.3	4.1 %	8.8	4.0	119.9 %

Figures in million euros

IBERIA's insurance revenue reached almost 7 billion euros (+7.1%), with Spain accounting for the vast majority of this, at 6,8 billion euros (+ 7.1%). Revenue in Portugal amounted to 154.4 million (+4.1%).

The result for the period includes the positive impact of 46.5 million as a result of arbitration due to the breach of the alliance with Bankia (29.4 and 17.1 million in Life and Non-Life, respectively).

The attributable result amounted to 341.4 million euros (+82.6%). Spain's contribution to the result for the period is 332.6 million euros (+81.7%).

Information by most relevant business line

		Insurance revenue			Attributable result
	DECEMBER 2023	DECEMBER 2022	Δ %	DECEMBER 2023	DECEMBER 2022	Δ %
LIFE	1,039.3	916.8	13.4 %	164.4	73.8	122.9 %
LIFE PROTECTION	326.7	306.3	6.7 %	75.9	121.2	-37.4 %
LIFE SAVINGS	712.6	610.5	16.7 %	63.0	(55.1)	0.0 %
OTHER	0.0	0.0	0.0 %	25.5	7.7	0.0 %
NON-LIFE	5,938.7	5,600.6	6.0 %	177.0	113.3	56.3 %
AUTO	2,322.5	2,258.7	2.8 %	13.9	17.1	-19.1 %
GENERAL P&C	2,386.3	2,214.0	7.8 %	59.0	45.1	31.0 %
ACCIDENT & HEALTH	879.7	816.7	7.7 %	30.2	30.2	0.0 %
OTHER NON LIFE	350.3	311.2	12.6 %	73.9	20.8	0.0 %
TOTAL	6,978.1	6,517.4	7.1 %	341.4	187.0	82.6 %

Figures in million euro

*Other Non-Life mainly includes Third-party liability and Consolidation adjustment.

146 Consolidated Management Report 2023

The Life business grew by 13.4% compared to the previous year, reaching more than 1.0 billion euros, of which 712.6 correspond to Life Savings (610.5 million euros in 2022).

Revenue in the Non-Life business grew by 6.0% and reflect the good performance of the General P&C business (+7.8%) driven by the Enterprise line, and the Accident and Health lines (+7.70%).

Automobile revenue grew by 2.8%, reflecting the progressive adaptation of rates to the inflationary context. The portfolio in this business line included more than 6.1 million insured vehicles, slightly down on the previous year as a result of the implementation of risk selection measures.

The Automobile and General P&C businesses were affected by weather-related events, especially the strong storms in Spain in the second half of the year.

The Life business continues to contribute strongly to earnings, both in the Protection and Savings segments, with a total contribution of 164.4 million euros.

The market share in the Non-Life business in Spain amounted to 13.8% at the close of the last two fiscal years. The share of the Life business in 2023 was 7.5% (7.1% in 2022).

In Portugal, the market share in the Non-Life and Life business for 2023 was 2.3% and 1% respectively, (2% and 1.4% in 2022, respectively).

BRAZIL

This regional area encompasses the insurance activity in Brazil.

Key figures

ITEM	DECEMBER 2023	DECEMBER 2022	Δ %
Investments, real estate and cash	3,733.1	3,076.1	21.4 %
Insurance contract liabilities	3,465.0	3,275.5	5.8 %
CSM	570.0	455.9	25.0 %
Shareholders' equity	1,034.6	866.0	19.5 %

Figures in million euro

Information by most relevant business line

		Insurance revenue		Attributable result
BRAZIL	DECEMBER 2023	DECEMBER 2022	Δ %	DECEMBER 2023	DECEMBER 2022	Δ %
LIFE	1,365.7	1,257.4	8.6 %	69.0	50.4	36.7 %
LIFE PROTECTION	1,346.3	1,229.1	9.5 %	51.5	44.5	15.7 %
LIFE SAVINGS	19.5	28.3	-31.2 %	6.1	(2.6)	332.6 %
AUTOMOBILE	632.1	598.9	5.5 %	16.5	(35.3)	146.7 %
GENERAL P&C	2,825.4	2,377.6	18.8 %	131.3	112.9	16.3 %
OTHER	0.5	0.7	-28.6 %	10.7	10.6	0.9 %
TOTAL	4,823.7	4,234.6	13.9 %	227.5	138.6	64.2 %

Figures in million euro

In Brazil, revenue amounted to 4.8 billion euros (+13.9%). This improvement is mainly due to the positive performance of the General P&C and Life Protection businesses, which grew by 18.8% and 9.5% in euros respectively.

The Automobile business recorded a revenue increase of 5.5% and the rapid adaptation of rates to inflation continues.

The attributable result improved by 64.2%, thanks mainly to the contribution of the General P&C, Automobile and Life Protection businesses, the latter driven by the country's high interest rates.

148 Consolidated Management Report 2023

OTHER LATAM

This regional area includes Mexico, Peru and other Latin American countries.

Key figures

ITEM	DECEMBER 2023	DECEMBER 2022	Δ %
Investments, real estate and cash	4,572.8	3,831.3	19.4 %
Insurance contract liabilities	5,109.4	3,956.7	29.1 %
CSM	249.9	246.1	1.6 %
Shareholders' equity	1,491.4	1,330.7	12.1 %

Figures in million euros

Information related to the principal countries

COUNTRY	Insurance revenue			Attributable result
	DECEMBER 2023	DECEMBER 2022	Δ %	DECEMBER 2023	DECEMBER 2022	Δ %
MEXICO	1376.8	1272.1	8.2 %	49.1	27.9	75.7 %
PERU	697.4	697.4	10.9 %	13.8	57.0	-75.9 %
DOMINICAN REPUBLIC	452.4	452.4	2.5 %	8.5	5.4	57.7 %
CHILE	412.2	412.2	5.9 %	10.8	7.1	53.5 %
COLOMBIA	437.5	437.5	13.3 %	13.9	67.7	-79.4 %

The region's revenue grew by 5.9% to just under 4.5 billion euros, while the net result stood at 120.6 million euros, with significant contributions from Mexico, Peru and Colombia.

As far as net results go, the strong growth in Mexico (+75.7%) and the positive performances in the Dominican Republic (+57.7%) and Chile (+53.5%) are worthy of note.

In terms of revenue, the positive performance from Uruguay (+14.9%), Colombia (+13.3%) and Peru (+10.9%) stand out.

Information by most relevant business line

	Insurance revenue			Attributable result
OTHER LATAM	DECEMBER 2023	DECEMBER 2022	Δ %	DECEMBER 2023	DECEMBER 2022	Δ %
LIFE	848.4	767.0	10.6 %	61.7	95.1	-35.1 %
LIFE PROTECTION	775.0	648.1	19.6 %	19.0	43.5	-56.2 %
LIFE SAVINGS	73.4	118.9	-38.2 %	35.3	49.8	-29.2 %
AUTOMOBILE	764.3	735.5	3.9 %	24.6	15.3	61.3 %
GENERAL P&C	1,901.4	1,836.2	3.6 %	29.3	39.6	-26.0 %
ACCIDENT & HEALTH	882.9	821.0	7.5 %	(12.1)	30.3	-140.0 %
OTHER	54.0	42.9	25.9 %	17.1	5.0	242.0 %
TOTAL	4,451.0	4,202.6	5.9%	120.6	185.3	-34.9%

Figures in million euros

Market shares in the main Latin American countries

The market shares in Non-Life direct insurance in the main Latin American countries are shown in the accompanying table.

149 Consolidated Management Report 2023

COUNTRY	Ranking (at December 2022)	Market share (1)	Market share date
Argentina	16	1.70 %	June 2023
Brazil	2	13.50 %	Sept 2023
Chile	6	6.30 %	Sept 2023
Colombia	7	5.60 %	Sept 2023
Honduras	3	16.40 %	Sept 2023
Mexico	7	5.40 %	Sept 2023
Panama	2	14.70 %	Sept 2023
Peru	3	18.40 %	Sept 2023
Dominican Republic	4	9.80 %	Sept 2023

(1) Figures according to the latest available information for each market.

Source: MAPFRE Economic Research, using data from the supervisors in each country.

NORTH AMERICA

This regional area has its headquarters in Webster, Massachusetts and encompasses operations in United States and Puerto Rico.

Key figures

ITEM	DECEMBER 2023	DECEMBER 2022	Δ %
Investments, real estate and cash	2,260.3	2,312.7	-2.3 %
Insurance contract assets	0.0	0.0	0.0 %
Insurance contract liabilities	2,332.7	2,479.7	-5.9 %
CSM	2.8	2.0	41.2 %
Shareholders' equity	1,149.9	1,152.6	-0.2 %

Figures in million euros

Information by country

		Insurance revenue			Attributable result
COUNTRY	December 2023	December 2022	Δ %	December 2023 December 2022		Δ %
UNITED STATES	2,174.8	2,154.6	0.9 %	(11.6)	(88.0)	86.8 %
PUERTO RICO	409.6	397.1	3.2 %	26.0	18.7	39.6 %
TOTAL	2,584.5	2,551.6	1.3 %	14.4	(69.3)	120.8 %

Figures in million euros

Insurance revenue in NORTH AMERICA exceeded 2.5 billion euros (+1.3%), with the United States delivering almost 2.2 billion euros (+0.9%) and Puerto Rico contributing 409.6 million (+3.2%).

The attributable result amounted to 14.4 million euros (+120.8%), with the contribution trend for both Puerto Rico and the United States favorable during the period.

Information by most relevant business line

	Insurance revenue			Attributable result
NORTH AMERICA	DECEMBER 2023	DECEMBER 2022	Δ %	DECEMBER 2023	DECEMBER 2022	Δ %
LIFE	1.8	2.1	-18.1 %	0.6	1.1	-45.7 %
AUTOMOBILE	1,479.1	1,467.4	0.8 %	(13.5)	(101.2)	86.7 %
GENERAL P&C	819.5	776.4	5.5 %	16.2	16.6	-2.3 %
ACCIDENT & HEALTH	45.1	45.5	-1.0 %	1.3	0.0	0.0 %
OTHER	239.0	260.2	-8.1 %	9.8	14.2	-31.0 %
TOTAL	2,584.5	2,551.6	1.3%	14.4	(69.3)	120.8%

Figures in million euros

The Automobile business shows a stable claim frequency, and the rate increases already implemented in the United States (more than 29% since January 2022) should offset the expected increase in claims costs.

The General P&C result was affected by several weather events during the year, as well as the significant increase in the cost of catastrophic reinsurance protection. The rate increase trend continues in the Homeowners line.

The market shares for the state of Massachusetts (USA) are shown in the accompanying table.

LINE	MASSACHUSETTS
	DECEMBER 2022	DECEMBER 2021
Automobile	18.3 %	18.4 %
Total Non-Life	8.7 %	9.0 %
Total Life	-%	-%
TOTAL	2.4 %	2.5 %

Source: MAPFRE Economics, using data from the supervisors in each country

The market shares in Puerto Rico are shown in the accompanying table.

	PUERTO RICO
LINE	DECEMBER 2022	DECEMBER 2021
Automobile	9.4 %	9.9 %
Property and Contingency	11.7 %	12.9 %
Total Non-Life	2.2 %	2.5 %
Total Life	0.1 %	0.1 %
TOTAL	2.0 %	2.2 %

Source: MAPFRE Economics, using data from the supervisors in each country.

EMEA

This regional area takes in the insurance operations in Italy, Germany, Turkey and Malta.

Key figures

ITEM	DECEMBER 2023	DECEMBER 2022	Δ %
Investments, real estate and cash	3,534.8	3,498.0	1.1 %
Insurance contract liabilities	3,218.7	3,214.1	0.1 %
CSM	90.5	68.3	32.5 %
Shareholders' equity	486.2	477.1	1.9 %

Figures in million euros

Information by country

		Insurance revenue		Attributable result
COUNTRY	DECEMBER 2023	DECEMBER 2022	Δ %	DECEMBER 2023	DECEMBER 2022	Δ %
TURKEY	348.6	264.8	31.7 %	22.8	-70.0	132.6 %
ITALY	299.5	330.4	-9.4 %	-51.0	-8.1	0.0 %
GERMANY	390.4	370.3	5.4 %	-17.8	2.1	0.0 %
MALTA	140.6	127.1	10.6 %	6.6	2.9	126.2 %
OTHER*	0.0	46.9	---	0.0	-0.1	---
TOTAL	1179.1	1139.5	3.5 %	-39.4	-73.2	46.2 %

Figures in million euros

*In fiscal year 2022 included ABDA (Indonesia) and MAPFRE INSULAR (Philippines)

Insurance revenue in EMEA was up 3.5% to 1.2 billion euros in 2023. The positive performances from Turkey and Malta stands out, with growth of 31.7% and 10.6% respectively.

The region recorded losses in 2023, concentrated in Italy and Germany, as a result of the complicated Automobile environment and strong storms in Europe.

In Turkey, the good performance of financial investments denominated in euros have offset both the effect of inflation and the impact of the earthquake in the first quarter, allowing the country to report profits for 2023. Malta maintains a recurring contribution to earnings.

Information by most relevant business line

		Insurance revenue		Attributable result
EMEA	DECEMBER 2023	DECEMBER 2022	Δ %	DECEMBER 2023	DECEMBER 2022	Δ %
LIFE	55.5	50.2	10.6 %	0.9	0.9	-1.4 %
LIFE PROTECTION	20.4	19.7	3.3 %	7.3	4.5	59.5 %
LIFE SAVINGS	35.2	30.5	15.3 %	(1.9)	(3.5)	45.6 %
AUTOMOBILE	842.4	816.9	3.1 %	(45.3)	(52.2)	13.3 %
GENERAL P&C	133.2	108.2	23.1 %	4.2	(0.3)	0.0 %
ACCIDENT & HEALTH	127.9	97.4	31.3 %	12.3	(17.3)	170.9 %
OTHER	20.1	66.8	-69.9 %	(11.5)	(4.3)	167.4 %
TOTAL	1,179.1	1,139.5	3.5 %	(39.4)	(73.2)	46.2 %

Market shares for the EMEA region are shown in the following table.

LINE	GERMANY		ITALY		MALTA
	DECEMBER 2022	DECEMBER 2021	DECEMBER 2022	DECEMBER 2021	DECEMBER 2022	DECEMBER 2021
Automobile	1.3%	1.3%	1.2%	1.3%	34.3%	34.4%
Total Non-Life	0.5%	0.5%	0.6%	0.6%	33.3%	33.2%
Total LIfe	—%	—%	—%	—%	77.5%	76.4%
TOTAL	0.2%	0.2%	0.2%	0.2%	61.8%	60.1%

MAPFRE RE

MAPFRE RE is a global reinsurer and is the professional reinsurer of the MAPFRE Group.

MAPFRE RE offers reinsurance services and capacity, providing all types of treaty and facultative reinsurance solutions across all Life and Non-Life lines of business.

MAPFRE RE also includes the Global Risks Unit, which is the MAPFRE Group specialist unit for managing the global insurance programs of large multinationals (offering policies that cover aviation, nuclear, energy, civil liability, fire, engineering and transport risks).

The key data relating to MAPFRE RE is presented here.

Key figures

ITEM	DECEMBER 2023	DECEMBER 2022	Δ %
Investments, real estate and cash	6,629.1	6,227.2	6.5 %
Insurance contract liabilities	7,865.0	7,760.8	1.3 %
Shareholders' equity	2,312.7	2,066.2	11.9 %

Figures in million euros

Insurance revenue at MAPFRE RE, which includes the Reinsurance and Global Risks businesses, increased by 15.3% to just over 8.0 billion euros.

The attributable result has evolved very positively to 252.1 million euros, representing growth of 44.1%.

Two significant catastrophic events, the earthquake in Turkey and Hurricane Otis in Mexico, had a combined impact of 153 million euros. Other frequency events, including storms in Europe, were offset by the absence of events in the Atlantic.

MAPFRE ASISTENCIA/MAWDY

This business unit specializes in travel assistance, roadside assistance, and other specialty risks of the Group.

Key figures

ITEM	DECEMBER 2023	DECEMBER 2022	Δ %
Investments, real estate and cash	209.6	199.6	5.0 %
Insurance contract liabilities	79.3	94.1	-15.8 %
Shareholders' equity	126.4	126.8	-0.3 %

Figures in million euros

Insurance revenues at MAPFRE ASISTENCIA/ MAWDY reached 224.2 million euros in 2023, and the net result was 5.6 million euros.

SIGNIFICANT ECONOMIC AND CORPORATE EVENTS

Relevant Economic Facts

Impacts of inflation on insurance and reinsurance operations

Persistent inflation has lead to an increase in the cost of claims, especially in those Non-Life lines where the obligation on the insured party materializes in the form of service provision. MAPFRE has opted to implement efficiencies in its processes and reduce costs as measures to mitigate inflationary effects, as well as to transfer the minimum amount necessary to premiums, so as to allow for a sufficient rate to cover the expected costs during the term of the policy.

This updating of rates, together with the low relevance of long-tail business lines means that MAPFRE's exposure to inflationary impacts on its insurance liabilities is very limited.

In relation to investments allocated to insurance operations and the impact of inflation, MAPFRE opted in previous years to diversify into alternative investments, mainly real estate and infrastructure, which provide additional protection against persistent inflationary environments.

MAPFRE also chose to replace part of its fixed-rate bonds and debt with securities whose interest rate is linked either to inflation or central banks' interest rates, which affords some protection against the inflationary environment.

Hyperinflationary economies

In 2023, both Venezuela, Argentina and Turkey continue to be considered hyperinflationary economies, with a negative impact on the result for the period of 70.2 million euros, reflected in the heading "Result from restatement of financial statements."

Catastrophic events

Earthquake in Turkey / Hurricane Otis

The earthquake in Turkey at the beginning of the year and the hurricane that occurred in Mexico in October 2023, called Otis, impacted the results of MAPFRE RE and the local insurance companies in the aggregate amount of 159 million euros.

Adverse atmospheric events in Europe

The higher frequency of atmospheric events in Europe, mainly in Iberia, Italy and Germany, had an additional net impact of 115 million euros above the level of similar claims recorded in 2022.

Relevant Corporate Events

Acquisition of INSIGNIA LIFE

On July 27, 2023, MAPFRE reported the agreement to acquire 94% of the shares representing the capital of the Mexican company PROYECTO INSIGNIA, S.A.P.I. DE C.V., an entity that owns the entire share capital of INSIGNIA LIFE, S.A. DE C.V., a Life insurance company that operates in Mexico.

The transaction involved the payment of an initial price of 1,606,160,000 Mexican pesos, with an additional variable payment to be made, which will depend on the achievement of specific objectives in the three years following the acquisition.

The definitive closing of the transaction is subject to approval by the corresponding authorities.

Termination of bancassurance alliance with BANKIA

In the process of resolving the bancassurance agreements between MAPFRE and BANKIA (absorbed by CAIXABANK), MAPFRE's right to receive, and CAIXABANK's obligation to pay, 120%, instead of the 110% already paid, of the market value of the insurance businesses that are the subject of said agreements, was submitted to arbitration.

On July 28, 2023, the award resolving the arbitration procedure was reported, upholding MAPFRE's claim and recognizing its right to receive 120% of the market value.

Said award would entail the obligation of CAIXABANK to pay MAPFRE an amount of 53 million euros, with a net effect on results of 47 million euros.

Impairment of goodwill in the United States

In September of the 2023 fiscal year, the Group wrote down 75 million euros of goodwill at its insurance operations in the United States. This has had no impact on the generation of cash, solvency or the Group's ability to pay dividends.

ISSUES RELATING TO THE ENVIRONMENT, SECURITY AND EMPLOYEES

Environment

In 2023, progress continued on the targets established for 2024 under the Environmental Footprint Plan. These objectives, as well as the actions necessary to achieve them, are included in the 2022–2024 Sustainability Plan to guarantee the aligned and coordinated action of all MAPFRE Group companies in this area.

In accordance with our neutrality strategy, MAPFRE's carbon footprint in Spain and Portugal has been offset through reforestation projects with the planting of 4,924 trees, also helping to restore nature and prevent deforestation.

In addition, and in the current context, the circular economy continues to be a necessary solution to the economic and climate crisis, making companies more competitive and resilient. In this area, MAPFRE has certified its Training Campus in Monte del Pilar (Madrid) and headquarters in Mexico in accordance with the AENOR Zero Waste Regulation, having also maintained the certification already obtained for the Group's headquarters in Majadahonda (Madrid) and the Data Center in Alcalá de Henares (Madrid).

More complete information on the subject of the environment can be found in the Integrated Report / 6. Committed to the environment.

Security

Work continued throughout 2023 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, which was approved by the MAPFRE S.A. Board of Directors on December 13, 2018.

In relation to protection against cyber threats, the MAPFRE Group's Cyber Resilience Plan (CRP) continued to be deployed in 2023, which serves as the master plan that guides MAPFRE's progress in Cybersecurity, Privacy, Data Protection and Digital Operational Resilience.

At the close of 2023, the CRP had been 82.8% deployed, in line with forecasts.

In the area of data privacy and protection, in 2023, work was done to automate and optimize the processes associated with compliance with the different legislation in force in this area, to enable a better response to requirements and to minimize human errors.

In addition, progress was made on approving of binding corporate rules (BCRs), which will enable MAPFRE to assure regulators and third parties of a standardized level of protection of customer data.

Employees

The accompanying chart shows the headcount at the end of 2023, compared with the headcount for the previous fiscal year.

	TOTAL NUMBER
CATEGORY	2023	2022
BOARD DIRECTORS (*)	19	17
EXECUTIVES	46	45
MANAGEMENT AND EXPERT MANAGEMENT	1,632	1,616
MIDDLE MANAGERS AND EXPERTS	5,187	4,896
ADVISORS	15,184	15,581
ASSOCIATES	8,805	9,138
TOTAL	30,873	31,293

*Executive board directors of Spanish companies

MAPFRE is a global company built on the continuous effort of the 30,873 people who are at the heart of our people management strategy, the pillars of which are development, promotion and well-being.

MAPFRE has a Capability Transformation plan in place, the main objective of which is to identify and develop the necessary knowledge for the business in the short and medium term, in addition to improving employability with development plans, career plans, training itineraries, upskilling, reskilling and retention plans.

All countries define succession plans up to the third organizational level. These plans have a common methodology that defines immediate, short-term and medium-term replacement, as well as the professional road maps in order to prepare potential successors.

MAPFRE establishes appropriate and competitive remuneration according to the function/job position, merits, and performance. This remuneration is based on applicable regulations while guaranteeing equality and nondiscrimination. The remuneration model focuses on productivity and the generation of added value, with flexibility to adapt to the different groups and circumstances of an increasingly demanding talent market.

MAPFRE has a transparent Remuneration Policy in place that all employees are aware of, whereby remuneration serves as a source of motivation and satisfaction that allows the objectives set to be achieved and the strategy to be met within the framework of the company's long-term interests.

To make good on its Sustainability Plan 2022–2024, MAPFRE has committed to reducing its pay gap to within +/-1% by 2024. As such, in 20223, the methodology for calculating the equal pay gap, verified in 2018 by the consulting firm Ernst & Young (EY), continued to be applied.

MAPFRE is a diverse, egalitarian and inclusive company with a Global Diversity and Equal Opportunity Policy in place that was approved by the MAPFRE Board of Directors on July 23, 2015, and a Diversity, Inclusion and Equity Strategy called Inclusion for Sustainable Growth. People from five different generations coexist in the company, contributing enthusiastically and making the most of their talents in an equal-opportunity environment.

Both the aforementioned policies and the other corporate policies are available to the workforce on the Global Intranet.

Since February 2020, MAPFRE has been a signatory of the United Nations Women's Empowerment Principles. In 2021, 2022, and 2023, it was included in the Bloomberg GEI (Gender Equality Index).

MAPFRE promotes the integration of people with disabilities in the workforce and is committed to ensuring that people with disabilities make up 3.5% of its workforce. In 2023, people with a disability accounted for 3.9%% of the workforce.

The objective of the Health, Well-being, and Prevention of Occupational Risks Policy is to protect and promote a safe and healthy workplace and improve the health of our employees and their families, both inside and outside the workplace. The Global Healthy Company Management Model, implemented worldwide, includes five areas of action: labor environment, health promotion, physical activity and nutrition, and mental well-being and work environment.

The Human Rights Policy guarantees the right to freedom of opinion, information and expression, respecting the diversity of opinions in the company and promoting dialog and communication, as well as the right to a safe and healthy working environment in which any display of harassment and violent or offensive behavior toward the rights and dignity of people is rejected.

More information on this matter can be found in the Integrated Report / 5.1. Developing our people.

LIQUIDITY AND CAPITAL RESOURCES

INVESTMENTS AND LIQUID FUNDS

Details of the investment portfolio by type of assets, as of December 31, for the last two financial years is shown in the following graph.

ITEM	DECEMBER 2023
Government fixed income	23,003.9
Corporate fixed income	8,687.2
Real Estate*	1,951.1
Equity	2,843.2
Mutual funds	3,456.6
Cash	2,086.0
Other investments	1,973.4
TOTAL	44,001.4

Figures in million euros

*Real estate includes both investment property and real estate for proprietary use (at acquisition price).

There follows a breakdown of the Fixed Income portfolio by geographical area and asset type.

Item	Government	Total Corporate Debt	Total
Spain	9,612.4	1,572.9	11,185.2
Rest of Europe	4,104.4	3,969.4	8,073.8
United States	1,741.7	1,985.1	3,726.8
Brazil	3,765.6	1.2	3,766.8
Latin America - Other	2,658.8	722.0	3,380.8
Other countries	1,121.1	436.6	1,557.7
TOTAL	23,003.9	8,687.2	31,691.1

Figures in million euros

Four different types of portfolios are included in investment portfolio management:

• Those that aim for a strict immunization of 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 where the risk is borne by policyholders.
• Conditioned actively managed portfolios, that aim to exceed guaranteed returns and to obtain greater returns for policyholders within prudential parameters, such as portfolios with profit-sharing.
• Freely actively managed portfolios, which are only conditioned by the legal rules and internal risk limitations.

The accompanying table shows a breakdown of actively managed Fixed Income portfolios.

		Market value (€ billion)	Account ing yield (%)	Market yield (%)	Modified duration (%)
IBERIA NON-LIFE	12/31/2023	3.48	2.50	3.28	7.80
	12/31/2022	3.00	2.16	3.60	8.97
MAPFRE RE NON LIFE	12/31/2023	4.16	2.54	3.80	3.40
	12/31/2022	3.26	1.87	4.04	3.46
IBERIA LIFE	12/31/2023	4.45	3.64	3.16	5.53
	12/31/2022	4.18	3.34	3.31	5.85
LATAM (EXCL. BRAZIL)	12/31/2023	3.03	7.94	8.41	5.04
	12/31/2022	2.50	8.18	9.52	3.88
BRAZIL - MAPFRE SEGUROS	12/31/2023	1.16	8.63	9.62	2.64
	12/31/2022	0.94	8.85	11.44	2.86
NORTH AMERICA	12/31/2023	1.80	2.82	5.42	4.21
	12/31/2022	1.80	2.62	5.30	4.40

Assets under management

The accompanying chart reflects the development of assets under management.

ITEM	DECEMBER 2023	DECEMBER 2022	Δ %
Pension funds	6,405.1	5,700.7	12.4 %
Mutual funds and other	6,561.7	5,525.8	18.7 %
TOTAL	12,966.8	11,226.5	15.5 %

Figures in million euros

160 Consolidated Management Report 2023

Real estate

The MAPFRE Group's strategy regarding real estate investments, both direct and through mutual funds, followed similar guidelines to the previous year, although in 2023 prudence guided investment decisions. The international context following interest rate hikes since mid-2022 has lead to a generalized collapse of cross-transactions in international markets (up to 85% in some international markets), with a significant divergence between investor expectations, which seek opportunities with downward prices and seller expectations, in the reverse sense. Under this scenario, MAPFRE has followed very restrictive criteria when selecting target assets

The general guidelines remain unchanged, with a focus on office properties, in central locations in the main capitals of the eurozone, assets delivering returns and with prime tenants. In short, we seek assets with high price stability and resilience in crisis scenarios. Divestment of assets that do not fit that definition continues, insofar as they are not necessary for MAPFRE's insurance operations.

New real estate investments materialize through agreements with top-tier international partners that provide their management capacity in markets such as France, Germany, Italy, the United Kingdom and Benelux, among others.

Four assets, located in Berlin, London, Paris and Lisbon, have been incorporated into these funds as a whole, all in central locations and for a total amount of 176 million euros.

On the divestment side of things, various sales agreements were executed, partly for office buildings in Spain that didn't fit into the Group's current strategy, and some land sales of plots that were originally acquired for residential projects. The combined amount of disposals in Spain in fiscal 2023 amounted to 174.5 million euros, with another 12.5 million coming in from other countries.

At the end of 2023, MAPFRE's real estate investments at market value amounted to more than 2.6 billion euros, with a net book value equivalent to 4.5% of total investments.

CAPITAL RESOURCES

Capital structure

The accompanying chart shows the composition of the capital structure at the close of 2023.

Capital structure reached almost 12.3 billion euros, of which 78.0% corresponds to equity.

Debt instruments

The following table shows the evolution of the Group's debt instruments.

ITEM	DECEMBER 2023	DECEMBER 2022
Total equity	9,656.3	8,869.7
Total debt	2,743.2	2,934.7
- of which: senior debt - 5/2026	864.2	863.5
– of which: senior debt - (2022 issuance)	505.0	504.3
– of which: senior debt - 3/2047 (First call 3/2027)	618.8	618.6
- of which: subordinated debt - 9/2048 (First Call 9/2028)	504.6	504.2
– of which: syndicated loan 2/2025 (€1,000M)	80.0	237.0
- of which: bank debt	170.6	207.2

Figures in million euros

Equity developments

Consolidated equity amounted to more than 9.6 billion euros at December 31, 2023, as compared to almost 8.9 billion euros at December 31, 2022. To December 31, 2023, the 1.2 billion euros in noncontrolling interests' shares in subsidiaries corresponds primarily to financial entities in Spain and Brazil with which MAPFRE has bancassurance agreements in place. Consolidated equity attributable to the controlling Company per share was 2.75 euros at December 31, 2023 (2.53 euros at December 31, 2022).

The accompanying table shows changes in equity attributable to the controlling Company in the period.

ITEM	DECEMBER 2023
BALANCE AT 12/31 PREVIOUS YEAR IFRS 9 transition impact	7,797.0
Additions and deductions recognized directly in equity:
Financial assets at fair value through OCI	680.3
Provision discounting at current value	(320.1)
Subtotal	360.2
Currency conversion differences	64.4
Other	9.8
TOTAL	434.4
Result for the period	677.2
Equity gains/losses without recycling	59.1
Dividends	(446.7)
Other changes in net equity	(50.8)
BALANCE AS AT PERIOD END	8,466.6

Figures in million euros

Equity attributable to the controlling Company at the close of December 2023 includes:

• An increase of 680.3 million euros in financial assets at fair value with changes in equity, partially offset by the variation in insurance and reinsurance contract liabilities of 320.1 million euros.
• An increase of 64.4 million euros due to currency conversion differences.
• Result as of December 2023 amounting to 677.2 million euros.
• A reduction of 446.7 million euros for the final dividend for fiscal 2022 and the interim dividend for fiscal 2023.

The breakdown of equity attributable to the controlling Company is shown in the accompanying table.

ITEM	DECEMBER 2023
Capital, retained earnings and reserves	10,264.3
Treasury stock and other adjustments	(8.6)
Net capital gains / losses	(435.2)
Unrealized gains /losses (Financial assets at fair value through OCI)	(115.0)
Shadow accounting (Gains allocated to insurance and reinsurance contracts)	(320.2)
Currency conversion differences	-1,353.88
Attributable equity	8,466.58

Figures in million euros

The accompanying table shows a breakdown of the currency conversion differences and variations.

CURRENCY	2023	2022	VARIATION
U.S. dollar	538.8	608.1	-69.3
Brazilian real	(808.1)	(857.7)	49.6
Venezuelan bolivar	(421.3)	(420.1)	-1.1
Turkish lira	(355.1)	(360.1)	5.0
Argentine peso	(112.5)	(89.9)	-22.5
Mexican peso	(50.0)	(91.2)	41.2
Colombian peso	(28.9)	(105.0)	76.1
Other currencies	(116.9)	(102.3)	-14.6
Total	(1,353.9)	(1,418.3)	64.4

CONTRACTUAL SERVICE MARGIN (CSM)

EVOLUTION OF CSM

The evolution of the Contractual Service Margin (CSM) during fiscal 2023 is presented here, along with a breakdown of its components.

ITEM	2023
Initial CSM	2,303.9
Accredited interest	88.9
New business CSM	293.0
Experience and hypothesis adjustments	221.7
Exchange rates	46.8
CSM growth	650.4
Release for period	-354.6
CSM as at December 2023	2,599.7

Figures in million euros

CSM BY REGION

The breakdown of the CSM by region/business unit is shown in the accompanying table.

REGION	2023	2023
IBERIA	1,686.5	1,531.6
BRAZIL	570.0	455.9
OTHER LATAM	249.9	246.5
NORTH AMERICA	2.8	2.0
EMEA	90.5	68.3
REINSURANCE	0.0	0.0
MAWDY	0.0	0.0
MAPFRE S.A.	2,599.7	2,303.9

Figures in million euros

OTHER LATAM includes MEXICO and LATAM SOUTH-CENTER

SOLVENCY II

The Solvency II ratio for MAPFRE Group stands at 198.1% at September 2023, compared to 201.2% at the close of December 2022, including transitional measures. This ratio would be 189.7%, excluding the effects of these measures. Eligible own funds reached over 9.4 billion euros in the same period, of which 83.5% 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 accompanying table.

Solvency margin breakdown (Solvency II)

ITEM	DECEMBER 2023	MARCH 2023	JUNE 2023	SEPTEMBER 2023
Eligible Own Funds	9,235.2	9,328.3	9,355.2	9,436.3
Solvency Capital Requirement	4,591.1	4,708.3	4,740.7	4,762.5
Solvency II Ratio	201.2 %	198.1 %	197.3 %	198.1 %

Million euro

The Group recalculates the SCR quarterly, applying estimates in the underwriting and counterparty risk.

Impact of transitional measures and matching and volatility adjustments

Ratio at 09/30/2023	198.1 %
Impact of transition for technical provisions	-8.5 %
Total ratio without transitional measures	189.7 %
Ratio at 09/30/2023	198.1 %
Impact of matching adjustment	-1.5 %
Impact of volatility adjustment	-0.8 %
Total ratio without matching and volatility

ANALYSIS OF CONTRACTUAL OPERATIONS AND OFF-BALANCE SHEET OPERATIONS

MAPFRE RE's minority shareholders have a put option on their shares in that company. In the event of it being exercised, MAPFRE or a MAPFRE Group company must acquire the shares of the minority shareholder interested in selling. The purchase price of MAPFRE RE shares will be calculated using a previously agreed formula. As at December 31, 2023, taking into account the variables included in the aforementioned formula, the commitment assumed by MAPFRE in the event of exercising the aforementioned option would amount to a total of approximately 128.9 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.

The Group's main activity is the insurance and reinsurance business. Detailed information on the different types of insurance risks is included in note 7. "Risk management" of the Consolidated Report.

Regarding the financial risks that affect the Group's activity, the following should be noted:

Market and interest rate risks

A significant part of the Group's 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.

A prudent investment policy (characterized by a large proportion of highly rated fixed income securities) and the prudent selection and sustainability criteria of financial assets with adequate characteristics to cover the obligations undertaken are the main measures that mitigate the possible adverse effects of variations in market prices.

Fixed income securities represent 83.5% of the total financial investment portfolio in 2023 (80% in 2022). Investments in equities and mutual funds have a limited weight in the balance sheet, accounting for approximately 16.5% of total financial investments in 2023 (20% in 2022).

During fiscal 2023, in several of the markets in which the Group operates (eurozone countries and the U.S.), the interest rate hike that began in 2022 continued to curb the strong inflationary spike that began in the spring of 2021. This occurred as a result of supply-side tensions arising from the post-COVID period (with special mention of the direct impact via the energy aspect and the lack of components that impact on production supply chain problems, as well as expansionary fiscal policies), subsequently accentuating as a result of the Ukraine conflict, and contributing to pressures on enterprise costs. The foregoing aspects may influence consumer behavior, causing a decrease in demand and a contraction in the volume insurance products and services purchased.

Revenue from MAPFRE's Life insurance and asset management operations are directly related to the value of the assets managed (whether fixed income or equities), so a fall in the markets could negatively affect these revenues.

Exchange rate risk

Changes in the value of the euro against other currencies 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 own funds attributable to the controlling company resulted in the positive acknowledgment of 64.4 million euros in 2023.

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, among others, are 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 risk 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.

The Credit Risk Management Policy establishes limits per issuer in line with the risk profile of the counterparty or the investment instrument, as well as exposure limits in relation to the counterparty's rating.

Additional Information

The relevant information and metrics on risk management at MAPFRE and ESG risks and opportunities can be found in the Integrated Report / 3. Risk Management.

SIGNIFICANT EVENTS AFTER THE FISCAL YEAR-END

There have been no relevant events subsequent to the close of the fiscal year.

INFORMATION ON EXPECTED PERFORMANCE

OUTLOOK

The resurgence of tensions in the Middle East, with the Gaza-Israel conflict, marked the second half of 2023. This situation is keeping that region and the West on high alert, particularly due to a potential escalation of the conflict. Meanwhile, there is still no solution to the ongoing conflict in Ukraine, but there has been a clear reduction in terms of both military efforts and financial backing, which could lead Ukraine and NATO to propose sitting down at the negotiating table. In any case, this environment is a reminder that geopolitical tensions may have significant implications for the global economic context, as they influence supply risk in energy and commodity markets, and consequently price dynamics.

In the energy markets, oil prices fell sharply from late September (when they surpassed USD 100/ barrel) to USD 77/barrel at the end of the year. However, the outbreak of war in the Gaza strip drove prices up temporarily, before falling off again from mid-October onward, demonstrating that concerns about a global slowdown take precedence over possible supply problems due to the war.

2023 was also a year marked by the bankruptcy of three large banks in the United States (Silicon Valley Bank, First Republic, and Signature). This followed a loss in value of investment portfolios due to the rise in interest rates. To prevent the problem from spreading to other banks, the Federal Reserve launched a liquidity line (BTFP - Bank Term Funding Program) consisting of buying bonds at book value to prevent banks from having to sell securities on the market at a loss. At the time of the last quarterly report by the Federal Deposit Insurance Corporation (FDIC), the aggregate banking sector had accumulated unrealized losses of nearly 560 billion dollars. The BTFP was created as a temporary source of aid and will expire on March 11, 2024, unless extended by the Federal Reserve.

Meanwhile, in the area of economic activity, the markets and analysts are trying to determine whether the desired soft landing will be ultimately achieved, both in the United States and in the eurozone, or whether, on the contrary, the risk of a tougher recession persists.

Until now, the inversion of the interest rate curve has been a true indicator for predicting recessions. In the current environment, however, it remains to be seen whether the indicator will fail this time, or whether the recession has simply been postponed due to the investment packages and tax aid activated in both Europe and the United States. In addition, these aid packages, together with the increase in defense expenses, place the focus on increasing debt levels. In this regard, some central banks have drawn attention to the fact that governments should also make efforts to redirect expenditures, an important factor in order to be aligned in controlling inflation.

Currently, government spending levels are very high for several reasons: i) the forced closure of economies as a result of the COVID-19 pandemic; ii) aid to offset the effects of inflation; iii) investments in energy transition; iv) population aging and pension spending; v) war financing and increased defense spending. This high spending is leading to worrisome increases in debt, which in turn are aggravated by the increase in interest they must pay. Thus, the benchmark interest rate for 10-year US Treasury bonds reached 5% in October, with the Italian one also reaching 5% and Spanish one exceeding 4%; these were the highest levels in a decade.

If interest rates remain high for several years, they will impact renewals and therefore significantly increase spending on public debt interest, casting doubt on the medium-term sustainability of the debt. In August, Fitch Ratings cut its rating on U.S. debt to AA+, the same rating assigned to it by S&P.

Inflation levels eased throughout 2023 but rebounded again in the final stretch of the year. This was influenced by the base effects, the end of some aid relief programs, and the fact that fiscal deficits remain high. Likewise, salary reviews will cause inflation to consolidate at new levels due to secondround effects (defense of purchasing power).

The central banks of the United States and the eurozone appear to have paused their interest rate hikes, insofar as the tightening of financial conditions is already being seen in the economy, and inflation has largely (although not entirely) subsided. Meanwhile, central banks are attempting to reduce their balance sheets, mainly via non-reinvestment in maturing bonds, to ensure a smooth transition toward monetary normalization.

The transmission of monetary policy to credit conditions is strong. In this regard, 20-30% reductions in mortgage approvals are being observed across the eurozone. Furthermore, the monetary base has been visibly shrinking in the eurozone since the end of 2022, and the same phenomenon has been observed in the United States since the first quarter of 2021.

Looking ahead to 2024, unless risks materialize, a soft landing would be expected in both the United States and the eurozone. However, the level of uncertainty has never been so high. Two major conflicts are underway, and the Middle East conflict could destabilize the entire region while impacting energy markets. Also, there is a historic tightening of financial conditions at a time when government debt levels are quite high, and instead of prospects for reduction, there are several factors driving their increase (higher defense spending, energy transition, increase in pension expenses, and the cost of debt itself).

Credit and investment, which are components of aggregate demand, are being strongly affected by this financial tightening process, suggesting that activity will slow down. Private investment is therefore expected to moderate, and inventory adjustments in companies are anticipated. In the same vein, financial conditions are also tightening in the mortgage market, as the effects of interest rate hikes act at the pace of debt maturities and mortgage installment renewals.

In the United States, the real estate sector in general, and the commercial and office sector in particular, must be monitored insofar as there are indicators of a sharp slowdown. We must also pay close attention to the end of the Bank Term Funding Program (BTFP) liquidity assistance in March 2024, as well as automobile and student loans.

In Germany, Europe's industrial muscle appears to be weakening, and this is not only due to rising energy costs. Industrial production has been falling for five years, affected by a broader process of industrial relocation.

In China, significant risks remain in the real estate markets and in the region's debt, with implications for the financial sector. The Chinese government continues to activate stimulus packages to keep the economy moving.

Finally, vigilance must be maintained for any challenges that may arise in the Eurobond market (i.e. the entire USD fixed income market outside the United States). According to analysts, there are 21 emerging countries whose dollar debts are greatly increasing their spreads (above what interest rates have already risen in the United States), which is also exacerbated by the appreciation of the dollar.

STRATEGIC PLANNING

The 2022-2024 strategic cycle we are in the middle of, duly approved by the MAPFRE S.A. Executive Committee and Board of Directors, the metrics of which have been calculated according to the accounting principles in force in each country, is subject to continuous review, which enables us to manage the uncertain environment we are navigating.

There follows a review of the most relevant progress of the Strategic Plan in 2023 and the outlook for the coming years.

Plan progress in 2023

The evolution of our ambition is reflected in MAPFRE's aspirational objectives, the progress of which is as follows:

• ROE: 9.9% (excluding operational extraordinary items) compared to an initial aspiration for the 2022-2024 three-year period of 9% - 10% (average ratio).
• Growth in premiums: 9.7% compared to an initial aspiration for the three-year period 2022-2024 of 5% - 6% (average growth at constant scope).
• Non-Life combined ratio: 97.24% compared to an aspiration for the 2023-2024 period of around 96% (average ratio).
• Gender pay gap: 0.90% compared to an initial aspiration of +/-1% by 2024.

– ESG investments: 96.6% of the investment portfolio (managed by MAPFRE AM, Brazil and USA) rated in line with ESG criteria, compared to an initial aspiration of 90% by 2024 (from the Global portfolio).

In 2023, we updated and approved the Strategic Planning Rules, which helps us adapt, not only to new ways of working, but also to thinking, so that we can successfully face the challenges the future holds and continue modernizing our Company.

These rules include new approaches for dealing with current challenges and competing in an increasingly dynamic business environment.

In 2023 we carried out a profound renewal of our organizational structure, which came into force on January 1, 2024, the aim of which is to make the most of the path ahead.

Our business model will respond to the needs of all stakeholders, supporting global growth and leveraging the strengths of our company.

Our roadmap for the coming years will continue to focus on accessibility, differentiation and scalability, all underpinned by digitalization. Our talent and experience will enable us to achieve the objectives we set ourselves.

We will continue to rely on our strategic pillars of growth and profitability, efficiency and productivity, and transformation; which we will also reinforce with the broad and positive sustainability project that we have deployed. The commitment of the human team to the business will contribute to the stability of these pillars.

We want to work in greater depth on the potential for disciplined growth focused on:

• Prioritization
• Developing new lines of business
• Enriching our current businesses
• Properly allocating resources

Our objective is to reach customers and make the presence we have in the markets more effective, facing external circumstances and responding to internal challenges. Flexibility will allow us to execute our plan and focus it on achieving objectives, in addition to generating social value.

R&D+i ACTIVITIES

INNOVATION

Innovation is an integral part of MAPFRE's strategy, business model, and culture, making it possible to develop new products and solutions that are aligned with customer needs and respond to new market trends and environmental and social aspects.

MAPFRE Open Innovation is MAPFRE's strategic commitment to boost client-centered transformation. With it, the company aims to foster innovation carried out by and for people. Designed as an open innovation platform, MAPFRE Open Innovation forms partnerships with other actors and uses emerging technologies. For MAPFRE Open Innovation, adding value to MAPFRE is as important as contributing to the progress toward a more prosperous, just, and egalitarian society. Since 2019, more than three million clients have benefited from solutions originating from this model, in terms of both insurance operations (contracting or benefits) and relational and aspirational aspects, addressing major social issues. In addition, proposals have been analyzed from more than 2,500 startups, of which more than 50 have gone through our acceleration and adoption programs, which has consolidated our relationship with entrepreneurs in the insurance industry and our role as a benchmark for the insurtech environment.

MAPFRE has managed to attract the best projects in their class, signing agreements with some of the most valued startups and the top insurtech solutions in the market. As part of our commitment to venture capital investment associated with the insurance industry, MAPFRE participates as the main investor in the venture capital fund Alma Mundi Insurtech, managed by Mundi Ventures. Fund I, with 100 million euros, has already entered the divestment phase. Fund II, which initially closed at 172 million euros with a projected size of 250 million euros, was launched in early 2022 and has already made 17 investments. It is considered one of the largest insurtech mutual funds in Europe.

In 2023, more focus and resources began to be placed on growth initiatives, i.e. opportunities that could represent a significant part of the insurance business in the future. This is how we address verticals that have gained importance in recent years, such as health and well-being or new mobility, but also emerging risks, such as those associated with climate change, cybersecurity, and artificial intelligence, which we must know how to properly assess in order to offer the best protection to our customers. At the same time, this year we have continued to work on transformation initiatives that promote efficient operations and an improved user experience, automating processes such as claims processing, image appraisal, and document and image management. In this area, progress was made in scaling up the most mature solutions to MAPFRE countries and in achieving the first deployment of the most pioneering solutions.

As for Artificial Intelligence (AI), on which there are numerous and increasingly frequent studies addressing its impact on the world economy, its growing use in all sectors is an undisputed fact. Although AI has great potential to improve process efficiency and enable new options, its use is not without risks. Greater use means greater potential exposure to technical risks (performance and robustness, security), ethical risks (biases, explainability), and regulatory risks (compliance and responsibility). In addition, the launch of Generative Artificial Intelligence tools accessible to all types of profiles has heightened the debate, including aspects related to intellectual property and the sustainability of solutions.

MAPFRE has more than 85 Artificial Intelligence/ Advanced Analytics, Machine Learning, and Deep Learning use cases underway, and 70% of the models are focused on issuing and benefits in the Automobile business line. During 2023, six cases for Generative Artificial Intelligence were developed and launched.

Additional information on information is available in the Integrated Report / 5.5. Digitalization of products and services and processes.

QUALITY

For MAPFRE, the quality perceived by its customers and other stakeholders is a fundamental concern. For this reason, since 2015, global models have been defined to enable us to understand the experience of different types of customers.

These measurements are taken through surveys of internal and external clients in all the countries and businesses in which MAPFRE operates, covering the insurance, reinsurance, global risks and assistance services lines. They are based on the Net Promoter Score (NPS® ) methodology, which measures customer perception through their likelihood of recommending the company to their friends or family members. This indicator also allows us to measure the customer's objective perception of the company and their willingness to renew, recommend, and cross-sell.

The first customer experience measurement model to be defined was relational NPS® , which measures the level of perception of a representative sample of MAPFRE's customers and its main competitors in each country and line of business.

In 2023, a relational NPS® measurement wave was carried out again, involving a representative sample of MAPFRE's portfolios. This wave, with more than 75,000 respondents, covered 18 countries and lines of business, while a total of 88 companies were analyzed around the world. Comparing the results of MAPFRE companies in recent years shows that the percentage of businesses whose NPS® exceeds the market average is as follows:

2020	2021	2022	2023	OBL 2023
82%	88.74%	87.4%	92.94%	>= 70%

To complement these measurements of relational NPS® , the Quality Observatory defined a Global Model for transactional NPS® , which allows MAPFRE to find out a client's perception in real time after interacting with us. This model is already implemented in Brazil, Spain, the United States, Puerto Rico, Mexico, Peru, Panama, Costa Rica, Nicaragua, Honduras, Salvador, Guatemala, Dominican Republic, Germany, and at MAWDY in Italy.

When analyzing the results of the measurements in the relational and transactional NPS® programs, the distributor client has been observed to play an important role in the end client's experience. Therefore, it is essential to determine this group's perception of MAPFRE. To meet this objective, in 2022 the Global Distributor Client Relational NPS® model was defined; and in 2023 the broker's experience with MAPFRE and its competitors in Brazil, Spain, Mexico, and the Dominican Republic was measured. Specifically, it assessed the perception of the brokers who collaborate with MAPFRE in aspects such as their relationship with the company, the levers of success, the support and advice of the company for the sale of policies and the management of the use of the policy by the end 174 Consolidated Management Report 2023

customer.

MAPFRE has more than 260 people assigned to quality control and monitoring throughout the world, and several Group companies hold f quality certifications. To renew these certifications, these companies must maintain high customer service standards.

MAPFRE holds ISO 9001 certification in Spain and Turkey. MAWDY holds this same quality certification in Chile, Colombia, Ecuador, Italy, Mexico, Uruguay and the Dominican Republic.

ACQUISITION AND DISPOSAL OF TREASURY STOCK

Purchase and sale transactions involving MAPFRE S.A. shares, where appropriate, comply with the provisions of the Internal Code of Conduct regarding Listed Securities issued by MAPFRE, the Regulation on market abuse and Circular 1/2017 of the Spanish National Securities and Exchange Commission.

During fiscal years 2023 and 2022, no MAPFRE S.A. shares were purchased, and 35,670 and 203,765 shares, respectively, representing 0.0012% and 0.0066% of the capital, amounting to 65,154.72 and 368,203.36 euros, were issued to directors of subsidiaries as part of their variable remuneration.

In addition, in fiscal years 2023 and 2022, under the Flexible Remuneration Share Plans approved in 2022 and 2021, employees of MAPFRE subsidiaries in Spain were issued 4,624,725 and 10,070,672 shares, representing 0.1502% and 0.3270% of the capital, amounting to 8,747,200.33 and 17,407,950.02 euros.

As of December 31, 2023, and 2022, the total balance of treasury stock was 15,129,098 and 19,789,583, respectively, representing 0.4913% and 0.6426% of the capital, amounting to 31,675,239.07 and 41,432,726.03 euros.

OTHER RELEVANT INFORMATION

THE MAPFRE SHARE

The following table shows the key information relating to MAPFRE shares at the 2023 fiscal yearend.

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	Spanish Stock Exchange
ISIN code	ES0124244E34

According to data published by the Spanish stock market operator (BME Group), an average of 2,964,831 shares were traded daily in 2023, and the effective average daily transaction value was 5.6 million euros.

The Company estimates that at least a similar volume may be traded on alternative markets.

VALUE AND RETURN

The share price performance is detailed in the accompanying, compared to relevant benchmark indices (IBEX 35, STOXX Europe 600 Insurance and IBEX 35 Bancos).

	1 YEAR	2 YEARS
MAPFRE	7.4 %	7.6 %
STOXX Europe 600 Insurance	8.8 %	7.6 %
IBEX 35	22.8 %	15.9 %
IBEX 35 Banks	27.8 %	44.5 %

MAPFRE's earnings per share (EPS) during the same period are shown in the accompanying table.

	2023	2022 18.0
EPS (euros)	22.00	0
Var. %	20.2%	---

SHAREHOLDER STRUCTURE

At the end of fiscal year 2023, MAPFRE had 209,140 shareholders.

The accompanying graph shows company's shareholder structure.

DIVIDEND

On November 30, 2023, the interim dividend charged against 202e earnings was paid at 0.0603 euros per share before tax, 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 2023 to be proposed at the Annual General Meeting is 0.09 euros per share before tax. Consequently, the total dividend against fiscal 2023 amounts to 0.15 euros per share before tax, representing a payout ratio of 68.2%.

Dividend payments and the dividend yield, calculated on an average share price basis, are shown in the accompanying table.

	2023	2022
DIVIDEND PER SHARE (euros)*	0.145	0.145
DIVIDEND YIELD	7.7 %	8.3 %

*Dividend paid in the fiscal year

CREDIT RATING MANAGEMENT

Over the course of 2023, the main ratings agencies confirmed the credit ratings of MAPFRE S.A. and its main subsidiaries as follows:

• In June, Fitch affirmed MAPFRE S.A.'s credit rating as well as MAPFRE ASISTENCIA's financial strength rating, and reaffirmed MAPFRE BHD's rating. In September it also reaffirmed MAPFRE SIGORTA's rating.
• In July, S&P affirmed the credit rating of MAPFRE S.A. and the financial strength of MAPFRE RE.

• In October, AM Best reaffirmed the financial strength ratings of MAPFRE RE, MAPFRE ESPAÑA, MAPFRE U.S.A. Group, MAPFRE PRAICO, MAPFRE MEXICO and MAPFRE PANAMA.

The current status of credit ratings of the companies headquartered in Spain and the main companies headquartered outside of Spain is provided in the accompanying table.

Companies resident in Spain	S&P	Fitch	A.M. Best
MAPFRE S.A. - Issuer	A- (Stable)	A- (Stable)	-
MAPFRE S.A. - Senior debt	A-	BBB+	-
MAPFRE S.A. - Subordinated debt	BBB	BBB-	-
Financial Strength
MAPFRE RE	A+ (Stable)	-	A (Stable)
MAPFRE ESPAÑA	-	-	A (Stable)
MAPFRE ASISTENCIA	-	A+ (Stable)	-
Companies not resident in Spain	S&P	Fitch	A.M. Best
Financial Strength
MAPFRE SIGORTA A.S. (Tutkey)	-	AA+ tur (Stable)	-
MAPFRE SEGUROS GENERALES DE COLOMBIA	-	AA col (Stable)	-
MAPFRE BHD COMPAÑÍA DE SEGUROS (Dominican Republic)	-	AAA dom (Stable)	-
MAPFRE U.S.A. Group	-	-	A (Stable)
MAPFRE PRAICO (Puerto Rico)	-	-	A (Stable)
MAPFRE MEXICO	-	-	A (Stable)
MAPFRE PANAMA	-	-	A (Stable)

ECONOMIC CONTRIBUTION TO SOCIETY

Insurance activity generates a direct economic value through the constant flow of transactions carried out (collection of premiums, payment of benefits, management of investments etc.), which affects different aspects related to the economic and social development of the environment in which the company operates.

Of the consolidated revenues for the year amounting to 33.4 billion euros, MAPFRE has contributed financially to the company through payments made, as detailed in the accompanying table.

ITEM	2023
Benefits paid (1)	17,785.0
Payments to providers (2)	8,861.2
Wages and salaries, and other (3)	1,482.1
Activity subtotal	28,128.3
Dividends (4)	964.4
Shareholders subtotal	964.4
Net income tax payment	395.4
Social security	266.9
Public administrations subtotal	662.3
Interest paid	96.8
Financing subtotal	96.8
Total	29,851.8

Figures in million euros

(1) Benefits paid and related expenses of direct insurance and accepted reinsurance.

(2) Includes payment of commissions and other activity services.

(3) Wages and salaries amounted to 1,229.4 million euros in 2022

(1,214.0 million euros in 2021).

(4) Dividend payments made during the fiscal year.

Furthermore, in its capacity as an insurer, the company makes commitments to its insureds in exchange for the management of resources that are invested in assets, particularly financial assets. The accompanying table gives information about the company in its role as an institutional investor at the close of 2023.

ITEM	2023
TOTAL INVESTMENTS	44,001.4
Financial investments	38,050.6
Fixed income	31,691.1
- Issued by governments	23,003.9
- Other fixed income securities	8,687.2
Other financial investments	6,359.5
Real estate investments(6)	1,951.2
Other investments	3,999.6
Pension funds	6,405.1
Mutual funds and other	6,561.7
ASSETS UNDER MANAGEMENT	56,968.2

Figures in million euros

178 Consolidated Management Report 2023

(6) Including 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 2023 and 2022 are shown in the accompanying table.

Item	Days
	2023	2022
Average provider payment period	6.4	6.1
Ratio of paid operations	6.2	5.7
Ratio of operations pending payment	17.8	22.0

Item	Figures in million euros
	2023	2022
Total payments made	1,781.9	1,762.7
Total pending payments exceeding the maximum statutory term	32.7	37.5

The information on invoices paid in a period less than the maximum established in the delinquency regulations is shown in the accompanying table.

Item	2023	2022
Monetary amount paid (€ million)	1,781.9	1,762.7
Percentage of total monetary payments made to providers	98.2%	97.9%
Total number of invoices paid to providers	263,421	262,135
Percentage of the total number of invoices paid to providers	98.9%	98.3%

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 Report and meets the reporting requirements established by Law 11/2018 of December 28.

The table below provides an overview of the content in the Non-Financial Information Statement mentioned above.

	Contents of Law 11/2018	GRI reporting criteria (see GRI content index in the MAPFRE Integrated Report 2023 / 8. Additional information / 8.4. Table of contents GRI
	General information
General	A brief description of the business model that includes its business environment, organization and structure	GRI 2-6 Activities, value chain and other business relationships
	Markets in which it operates	GRI 2-1 Organizational details GRI 2-6 Activities, value chain and other business relationships
	Organization's objectives and strategies	GRI 2-22 Statement on sustainable development strategy GRI 3-3 Management of material topics
	Main factors and trends that may affect its future performance	GRI 2-22 Statement on sustainable development strategy
	Reporting framework used	GRI 1-3 Preparation of reports in accordance with the GRI Standards
	Materiality principle	GRI 3-1 Process for determining material topics GRI 3-2 List of material topics

179 Consolidated Management Report 2023

Environmental issues
	Management approach: description and results of the policies related to these issues and of the main risks connected with those issues linked to the group's activities	GRI 2-12 Role of the highest governance body in overseeing the management of impacts GRI 3-3 Management of material topics
Detailed general information	Detailed information on the current and foreseeable impacts of company activities on the environment and, where appropriate, health and safety	GRI 301 to GRI 306
	Environmental evaluation or certification procedures	GRI 2-12 Role of the highest governance body in overseeing the management of impacts GRI 2-23 Policy commitments
	Resources assigned to environmental risk prevention	GRI 2-12 Role of the highest governance body in overseeing the management of impacts GRI 3-3 Management of material topics
	Application of the precautionary principle	GRI 2-23 Policy commitments GRI 3-3 Management of material topics
	Amount of provisions and guarantees for environmental risks	GRI 3-3 Management of material topics GRI 307-1
Contamination	Measures to prevent, reduce or repair emissions that seriously affect the environment, considering any specific air pollution from an activity, including noise and light pollution	GRI 302-4 GRI 305-1, 305-2, 305-3, 305-5
Circular economy and waste prevention and management	Prevention measures, recycling, reuse, other forms of waste valorization and disposal actions to combat food waste	GRI 301-1 GRI 306-2 (2020), 306-3 (2020)
Sustainable use of resources	Water consumption and water supply in accordance with local limitations	GRI 303-3, 303-5
	Consumption of raw materials and measures adopted to improve usage efficiency	GRI 301-1, 301-2
	Energy: direct and indirect energy consumption. Measures taken to improve energy efficiency. Use of renewable energies.	GRI 3-3 Management of material topics GRI 302-1, 302-2, 302-3, 302-4, 302-5

Climate change	Greenhouse gas emissions generated as a result of the company's activities, including the use of assets and services it produces	GRI 301-1 GRI 305-1, 305-2, 305-3, 305-4
	Measures taken to adapt to the consequences of climate change	GRI 3-3 Management of material topics GRI 201-2 GRI 305-5
	Voluntary medium- and long-term reduction targets in place to reduce greenhouse gas emissions and means implemented for this purpose	GRI 3-3 Management of material topics GRI 302-4 GRI 305-5
Protection of biodiversity	Measures taken to preserve or restore biodiversity	GRI 3-3 Management of material topics
	Impacts caused by activities or operations in protected areas	GRI 304-1
	Social and personnel matters
	Management approach: description and results of the policies related to these issues and of the main risks connected with those issues linked to the group's activities	GRI 2-12 Role of the highest governance body in overseeing the management of impacts GRI 2-19 Remuneration policies GRI 3-3 Management of material topics
	Total number and distribution of employees by country, gender, age and professional category	GRI 2-6 Activities, value chain and other business relationships GRI 2-7 Employees GRI 3-3 Management of material topics GRI 405-1
	Total number and distribution of work contract modalities and annual average of permanent contracts, temporary contracts and part-time contracts by gender, age and professional category	GRI 2-7 Employees GRI 2-8 Workers who are not employees
	Number of dismissals by gender, age and professional category	GRI 401-1
Employment	Average remuneration and its evolution broken down by gender, age and professional category or equal value	GRI 405-2
	Pay gap, the remuneration of equivalent job positions, and the average for the company	GRI 405-2
	Average remuneration of directors and managers, including variable remuneration, travel, subsistence and accommodation allowances, compensation, payments made to long-term pension systems, and any other income broken down by gender	GRI 2-19 Remuneration policies GRI 2-20 Process to determine remuneration
	Implementation of policies related to disconnection from work	GRI 3-3 Management of material topics
	Number of employees with a disability	GRI 405-1

Organization of work	Organization of working time	2-7 employees
	Number of absenteeism-related hours	GRI 3-3 Management of material topics GRI 403-2, 403-9
	Measures aimed at facilitating work-life balance and encouraging adoption of same by both parents	GRI 3-3 Management of material topics GRI 401-2, 401-3
Health and safety	Occupational health and safety conditions	GRI 3-3 Management of material topics GRI 403-1, 403-2, 403-3, 403-4, 403-5, 403-6, 403-7, 403-8
	Workplace accidents, in particular the frequency and severity, as well as occupational illnesses; broken down by gender	GRI 403-2, 403-9, 403-10
Social relations	Organization of social dialog, including procedures to inform and consult personnel and negotiate with them	GRI 2-28 Membership associations GRI 2-29 Approach to stakeholder engagement GRI 402-1 GRI 407-1
	Percentage of employees covered by collective agreements by country	GRI 2-30 Collective bargaining agreements
	Overview of collective agreements, particularly in the field of occupational health and safety	GRI 403-1, 403-4 GRI 407-1
Training	Policies implemented in the field of training	GRI 404-2, 404-3
	Total number of training hours by professional category	GRI 404-1, 404-2, 404-4
Universal accessibility	Universal accessibility for people with a disability	GRI 405-1
Equality	Measures taken to promote equal treatment and opportunities between women and men	GRI 401-3 GRI 404-2
	Equality plans, measures adopted to promote employment, protocols against sexual and gender-based harassment	GRI 405-1, 405-2 GRI 406-1
	Policy against all types of discrimination and, where appropriate, management of diversity	GRI 405-1, 405-2, 406-2

Respect for human rights
	Management approach: description and results of the policies related to these issues and of the main risks connected with those issues linked to the group's activities	GRI 2-12 Role of the highest governance body in overseeing the management of impacts GRI 3-3 Management of material topics
	Application of due diligence procedures in matters of human rights, prevention of risks of violation of human rights and, where appropriate, measures to mitigate, manage and repair possible abuses committed	GRI 2-23 Policy commitments GRI 2-26 Mechanisms for seeking advice and raising concerns GRI 407-1, 408-1, 409-1, 410-1, 411-1, 412-2, 412-3, 414-2
	Prevention of risks of violation of human rights and, where appropriate, measures to mitigate, manage and repair possible abuses committed	GRI 3-3 Management of material topics GRI 412-1
Human Rights	Complaints of human rights violations	GRI 2-26 Mechanisms for seeking advice and raising concerns GRI 3-3 Management of material topics GRI 406-1 GRI 419-1
	Measures implemented to promote and comply with provisions of the key International Labour Organization (ILO) conventions related 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 mandatory work; effective abolition of child labor	GRI 3-3 Management of material topics

Information on the fight against corruption and bribery
	Management approach: description and results of the policies related to these issues and of the main risks connected with those issues linked to the group's activities	GRI 2-12 Role of the highest governance body in overseeing the management of impacts GRI 3-3 Management of material topics
Corruption and bribery	Measures taken to prevent corruption and bribery	GRI 2-23 Policy commitments GRI 2-26 Mechanisms for seeking advice and raising concerns GRI 3-3 Management of material topics GRI 205-1, 205-2, 205-3 GRI 415-1
	Measures taken to combat money laundering	GRI 2-23 Policy commitments GRI 2-26 Mechanisms for seeking advice and raising concerns GRI 3-3 Management of material topics GRI 205-1, 205-2, 205-3
	Contributions to foundations and not-for-profit organizations	GRI 2-28 Membership associations GRI 201

Information about the company
	Management approach: description and results of the policies related to these issues and of the main risks connected with those issues linked to the group's activities	GRI 2-12 Role of the highest governance body in overseeing the management of impacts GRI 3-3 Management of material topics
The company's commitments to sustainable development	Impact of the company's activity on employment and local development	GRI 3-3 Management of material topics GRI 201-1 GRI 203-2 GRI 204-1 GRI 413-1, 413-2
	Impact of the company's activity on local populations and the territory	GRI 3-3 Management of material topics GRI 201-1 GRI 203-2 GRI 411-1 GRI 413-1, 413-2
	Relationships maintained with local community actors and modalities for dialog with them	GRI 2-29 Approach to stakeholder engagement GRI 204-1 GRI 413-1, 413-2
	Association or sponsorship actions	GRI 2-28 Membership associations GRI 3-3 Management of material topics GRI 201-1
Subcontracting and providers	Inclusion of social, gender equality and environmental issues in the purchasing policy	GRI 3-3 Management of material topics GRI 204-1 GRI 414-1, 414-2
	Consideration in relations with providers and subcontractors of their social and environmental responsibility	GRI 2-6 Activities, value chain and other business relationships GRI 308-1 GRI 407-1 GRI 409-1 GRI 414-1, 414-2
	Supervision and audit systems and their results	GRI 2-6 Activities, value chain and other business relationships
Consumers	Measures directed at consumer health and safety	GRI 3-3 Management of material topics GRI 416 -1 GRI 417-1, 417-2
	Complaint systems, grievances received and resolution of same	GRI 2-26 Mechanisms for seeking advice and raising concerns GRI 3-3 Management of material topics GRI 417-3 GRI 418-1

MAPFRE AND SUBSIDIARIES
Tax information	Profits earned by country	GRI 3-3 Management of material topics GRI 201-1 GRI 207-4
	Tax on profits paid	GRI 3-3 Management of material topics GRI 201-1 GRI 207-4
	Public subsidies received	GRI 201-4
Taxonomy Regulation Requirements
	Taxonomy Regulation Requirements	MAPFRE's own methodology prepared according to Article 8 on European Taxonomy

ANNUAL CORPORATE GOVERNANCE REPORT

The Annual Corporate Governance Report for the year 2023, as required by Article 538 of Royal Decree Law 1/2010, of July 2, approving the Consolidated Text of the Companies Act, forms an integral part of this Consolidated Management Report, and is subject to the same approval, deposit and publication criteria as this Consolidated Management Report. It is available for inspection on the website of the Spanish National Securities Market Commission (CNMV), at https://www.cnmv.es/portal/Consultas/EE/ InformacionGobCorp.aspx?TipoInforme=1&nif=A08055741, and also on MAPFRE's corporate website at www.mapfre.com.

ANNUAL REPORT ON DIRECTORS' REMUNERATION

The Annual Report on Remuneration of Directors for the year 2023, as required by Article 538 of Royal Decree Law 1/2010, of July 2, approving the Consolidated Text of the Companies Act, is an integral part of this Consolidated Management Report, and is subject to the same approval, deposit and publication criteria. It is available for inspection on the website of the Spanish National Securities Market Commission (CNMV), at https://www.cnmv.es/portal/Consultas/EE/InformacionGobCorp.aspx?

TipoInforme=1&nif=A08055741&lang=en

and also on MAPFRE's corporate website at www.mapfre.com.

Mr. Antonio Huertas Mejias	Ms. M.2 Amparo Jimenez Urgal
Chairman	Member
Mr. José Manuel Inchausti Pérez	Mr. Francisco J. Marco Orenes
1st Vice Chairman	Member
Ms. Catalina Minarro Brugarolas	Mr. Antonio Miguel-Romero de Olano
2nd Vice Chairman	Member
Mr. Fernando Mata Verdejo	Ms. M.2 del Pilar Perales Viscasillas
3rd Vice Chairman	Member
Ms. Ana Isabel Fernández Alvarez	Mr. Eduardo Perez de Lema Holweg
Member	Member
Ms. M.ª Leticia de Freitas Costa	Ms. M.ª Elena Sanz İsla
Member	Member
Ms. Rosa M.2 Garcia Garcia	Mr. Francesco Paolo Vanni d'Archirafi
Annonboir	Anomane

TABLE OF CONTENTS

		CEO letter	3
1	THE MAPFRE GROUP 7	1.1. Our activity 1.2. Our vision, purpose and values 1.3. Business model and geographic footprint (deployment) 1.4. Our structure 1.5. A recognized brand 1.6. Strategy 1.7. Main milestones and key figures	8 10 11 12 14 16 18
2	CORPORATE GOVERNANCE 34	2.1. Governance structure 2.2. Diversity and experience 2.3. Remuneration system	35 38 40
3	RISK MANAGEMENT 43	3.1. Integrated management model 3.2. Risk identification 3.3. ESG risks and opportunities 3.4. Risks and opportunities arising from climate change	44 48 52 53
4	COMMITTED TO SUSTAINABILITY 59	4.1. Our Sustainability highlights 4.2. Materiality: our priorities 4.3. Sustainability strategy 4.4. Sustainability governance 4.5. Our business and sustainability	60 61 68 73 75
5	COMMITTED TO STAKEHOLDERS 88	5.1. Developing our people 5.2. We generate business for our providers 5.3. Protecting our clients 5.4. Creating value for the shareholder 5.5. Innovation and digitalization in products and services and processes 5.6. Our footprint, shared value	90 118 126 138 140 143
6	COMMITTED TO THE ENVIRONMENT 151	6.1. Action strategy against climate change 6.2. Our Environmental Footprint Plan 6.3. Corporate strategy for offsetting greenhouse gas emissions	152 154 164
7	COMMITTED TO GOOD GOVERNANCE AND TRANSPARENCY 165	7.1. Our principles: due diligence, control and compliance 7.2. We safeguard ethical behavior 7.3. We promote cybersecurity and protect data privacy 7.4. Responsible and transparent with taxation	166 174 181 185
8	ADDITIONAL INFORMATION 188	8.1. Basis of preparation and presentation of the report 8.2. Notes on additional information 8.3. Table of contents GRI 8.4. Correspondence of GRI content and non-financial information status (Law 11/2018 of December 28)	189 192 255 278

CEO letter

Dear reader,

The publication of our annual report is a significant moment that gives us the opportunity to reflect on the journey so far and share perspectives on our Company's future.

In May of 2023, MAPFRE proudly celebrated 90 years of history. During this period, we have faced multiple challenges and changing economic and political situations in the different corners of the world where we have had the privilege of being present. It's essential to highlight the last 15 years, marked by the overcoming of the deep systemic crisis following the collapse of Lehman Brothers, the shocking global pandemic, and wars that have aggravated economic, fiscal and social imbalances in many of the world's countries.

Against this challenging backdrop, MAPFRE continues to hold leadership positions in most markets. We have a solid and profitable business model in place that facilitates steady growth, backed by a strong financial situation and low debt levels.

The year 2023 presented significant challenges, especially in terms of cost management due to the sharp increase in inflation. Developing and delivering quality services to clients in Non-Life and Health insurance in a group such as MAPFRE requires very powerful physical and human infrastructure and logistics that, in inflationary situations, can withstand sudden increases in costs that were not foreseen in prices, as these are calculated well before the provision of service takes place, and which result in significant deviations in the claims experience when inflation spikes persistently. This is what happened in 2023, and we had to deal with the situation firmly and decisively, applying cost containment strategies and adjusting rates, at varying speed in each country, depending on our position in the market, the type of product and distribution involved, and also on the need for supervisory approval, as is the case in the United States. As such, earnings reflect a different level of success, highlighting the substantial improvement in Brazil, the good direction we're headed in Spain and the improvement in the United States, which is close to breakeven. These territories, being our largest Non-Life markets, and specifically for Automobile insurance, condition the Group's results in these lines of business. In addition, Italy and Germany are two other countries where we are facing the greatest difficulties in the Automobile line.

But MAPFRE's high level of diversification, something we always talk about with pride boast and which is vital in the insurance business, has helped us both geographically an4d in terms of product. As such, the Life lines, mainly Protection and General P&C, specifically enterprise insurance, and the Reinsurance business, have contributed significant results to the Group, largely offsetting the losses in Automobile insurance.

In addition, by placing a large part of the strategic focus on growth, we closed out the year with nearly 27 billion euros in premiums, the highest figure in MAPFRE's history. We highlight the excellent performance of the Life line, undoubtedly driven by interest rates, which allows us to offer customers more competitive products through our commercial networks and banking partners, and good overall performance in the other lines in most markets.

We're also making progress on our asset management offer for clients, which we reinforced a few years ago with the creation of MAPFRE AM. We've already exceeded 10 billion euros in managed assets, which places us among the sector's leading non-bank firms.

Turning to the financial results of our activities, which can be improved on, net earnings, which is very significant given the complex circumstances in which it was generated, amounted to 677 million euros. We've adopted a prudent position looking to the future, amortizing goodwill in the United States in the amount of 75 million euros, thereby underlining our financial soundness, solvency and responsible management. As per the latest available data, to the close of the third quarter of 2023, MAPFRE has an excellent solvency margin of over 198%, lying at the midpoint of the band approved by the Board of Directors.

Also noteworthy in 2023 was the increase in both the frequency and intensity of natural events, such as the earthquake in Turkey that occurred in February of last year. Apart from registering a notable financial impact, we also, from the outset, deployed emergency aid programs for the people affected, in line with our intense social commitment.

In addition to profitable growth, transformation and improved efficiency remain fundamental pillars of our strategic plan. Among many technological and operational initiatives implemented in the short and medium term, I think it's worth highlighting our immersion in the use of AI and Artificial Generative Intelligence, with more than 80 use cases underway, all aimed at improving the customer experience and making insurance management and service provision more efficient.

With regard to business development, we have signed new distribution agreements and teamed up with new business partners in some countries. We made a significant acquisition in Mexico, acquiring specialist Life insurer Insignia Life, strengthening our presence in a country that is strategic for MAPFRE, with very profitable products that are distributed through a highly developed network across the entire country.

Moving on to our Sustainability Plan, we finished 2023 complying with 99.4% of our objectives. We completed a dual materiality (impact and financial) study last year so as to align our strategy with the priorities of our stakeholders. The conclusions of this work are included in the corresponding chapter of this publication.

Over the course of 2023, we fulfilled our environmental, transparency and good corporate governance commitments, and we continued to make progress in social sustainability to reduce all manner of inequality gaps, including the gender pay gap, both internally and externally, by organizing financial education programs, promoting knowledge about the sector and its development, which, in economic and social terms, results in a highly insured society. We've continued designing products for more vulnerable groups, or those with more specific needs, in addition to qualifying most of our investment portfolio as responsible, ensuring it complies with environmental, social and governance (ESG) criteria. Over the course of last year, we progressed in categorizing several mutual funds as products that, falling under these same criteria, reflect our commitment to investment in activities and companies that do business creating social value in parallel with economic value, all the while delivering adequate profitability. Progress was also made with the vast array of providers that work for our Group in the provision of services, validating their operations in line with ESG criteria.

The headway made on all these issues reaffirms MAPFRE's ongoing commitment to sustainable development and the 2030 Agenda.

We also remain firmly committed to our shareholders, regularly distributing dividends and standing out as one of the IBEX 35 companies delivering the highest return to shareholders. In November 2023, an interim dividend of 6 cents per share was paid out against the 2023 fiscal year, the same amount as the previous year. Consequently, the total amount of dividends paid to MAPFRE shareholders in the 2023 calendar year was 447 million euros, giving a dividend return on the average share price of 8% in recent years. In just the last five years, MAPFRE has allocated more than 2.1 billion euros to rewarding its shareholders' trust through dividends.

The rest of the economic indicators of our performance are fully included in this publication. I would simply like to add that, as planned, 2023 saw the introduction of new international financial reporting standards (IFRS 9 and 17) on Financial Instruments and Insurance Contracts, respectively, which are also applicable to MAPFRE, as an international group listed on the stock exchange. As we anticipated, implementation has been a major challenge, both due to the complexity of the regulation and the size and scope of action of our Group, but we have been able to meet the established milestones and legal obligations very satisfactorily.

With the closing of 2023, we marked the end of one cycle and the start of another. In 2024, we executed structural changes designed to simplify and improve the company's efficiency, renewing leadership and preparing for a new stage, which will involve continuing to focus on growth and improving results, as well as strengthening our best business practices in the main countries, making better use of new opportunities, which should prove to be very evident. Likewise, as a result of this reflection on MAPFRE's operating environment and potential, we have reviewed in advance the Strategic Plan underway which, although it has facilitated us in making good on most of our commitments, clearly required slight modifications to adapt it to the changing reality of our environment. At the March 2024 Annual General Meeting, we will present this revised Plan, which will have a three-year term of 2024-2026. With renewed enthusiasm and exacting ambition, we expect this new Plan will enable us to gain technical efficiency and boost productivity, improve our flexibility and ability to adapt to the environment, maximizing MAPFRE's full potential across all and businesses and geographies we operate in.

The 90 years of our history span nine decades of exemplary business development, successfully navigating the ups and downs shifting panoramas presented us with and making the most of all possible opportunities, thanks to several generations of employees, managers and directors who have brought us to where we are now, always holding leadership positions in our markets and with a very solid, very solvent and highly diversified business model. Moreover, this was accomplished by developing a very strong proprietary culture that features a strong sense of belonging and great commitment, not only to clients, intermediaries, partners or shareholders, but also to other stakeholders, especially in the social, environmental and good governance realms. At MAPFRE, we don't settle for good enough - we aspire to more, and to do so, we have laid the foundations to leverage growth over the coming decade. We look enthusiastically to the future as a large international group capable of achieving the goals we have set ourselves, with a profitable business model that mainly focuses on the client, orienting every process toward service excellence and orchestrating the vast team of professionals of almost 90 nationalities who use their talents to make our company better, day after day. Our more than 30 million clients around the world trust us to take care of them and what matters most to them. We also appreciate the support of our more than 200,000 shareholders, most of them small savers and investors, who place their trust in MAPFRE as a medium- to long-term investment alternative.

I invite you to broaden your knowledge of our Group by reading this report. In doing so, you will see for yourself that, in addition to being a solid and profitable company, we are also a company with a soul that believes deeply in people and that works with the objective of creating social wealth that contributes to the development of a more inclusive, fair, caring and sustainable society.

Thank you very much for your continued confidence, it is greatly appreciated.

Antonio Huertas, Chairman and CEO of MAPFRE

1.1. Our activity

MAPFRE is a multinational group conducting business in 100 countries worldwide and with a presence in 38 of them through a network of 12,282 offices and 81,000 intermediaries. We are the leading Spanish insurance company in the world and outright leader in Latin America, with relevant and/or leadership positions in most of the countries we operate in.

We are mainly engaged in We offer We adapt

insurance, reinsurance and financial activities. We offer a broad global catalog of products and services to protect people, professionals and enterprises from risk so that they can properly manage their present and future needs. Our corporate structure adapts to the ongoing development of our business and the needs of our clients.

comprehensive reinsurance solutions that complement insurance.

to new digital trends, offering our clients a simple and complete digital experience whenever they interact with MAPFRE.

to our clients with a range of products and services adapted to their different profiles and the reality of each country.

• Individuals: life insurance, health, accidents, property protection (homeowners, automobile, civil and property liability, etc.), cyber risks, savings and investment, retirement, burial, travel and leisure..
• Professionals, freelancers and entrepreneurs: we help business owners develop their commercial projects by providing them with a wide range of products and services that let them focus on their chosen activity. We offer solutions for vehicles, property and civil liability, agriculture, livestock, businesses, cyber risks, etc.
• SMEs and large enterprises: MAPFRE is the only Spanish insurer with the capacity to manage large business risks anywhere in the world. Our offer is adapted to the activity of each organization, its scope (local, national or global) and its management model. We have products and services available for engineering and construction, hulls and aviation, freight transportation, agricultural industries, surety and credit or group health, accident, life and retirement insurance, among others. Our clients can avail of a range of products and services adapted to their needs, different profiles and the reality of each country.

We protect We contribute

to the Sustainable Development Goals of the UN 2023 Agenda through an ambitious Sustainability Plan that covers not only what we do as a business but also how we act with the communities we operate in.

COUNTRIES REVENUES¹ EMPLOYEES INTERMEDIARIES

1.2. Our vision, purpose and values

Our vision is to be THE TRUSTED INSURANCE COMPANY for all our clients worldwide, through a global presence and a wide range of insurance, reinsurance and service products.

We aspire to lead the markets in which we operate through a proprietary and differentiated, sustainable management model based on transformation and innovation to achieve profitable growth, with clear and purposeful client orientation, both private and business, creating relationships of equity and transparency, with a multichannel focus and a deep vocation for service.

Our corporate purpose, the company's raison d'être in its day-to-day activity, is defined when we tell the client that "We'll be by your side so you can take assured steps forward, helping to build a more sustainable and caring society." In other words, we help them both in the here and now and in the future, because we're ready to support them and offer them what they need to deal with today and what comes down the line, just as we have been doing for many years. Because, in an uncertain world, we are defined by the capacity of more than 250,000 employees, collaborators and providers to deliver the best service, innovating, adapting to customer needs and being there when they need us.

We execute on this commitment supported by the following values, which help us make good on our corporate purpose and achieve the company's vision.

Financial strength with sustainable outcomes over time and full capacity to meet all its obligations with stakeholders.

Solvency Integrity Service

Ethical conduct as a core element in how everyone (executives, employees, agents and collaborators) behaves, with a socially responsible focus on all longterm activities and commitments.

The constant quest for excellence and continuous improvement aimed at creating more value for the client and making the quality of the service and the relationship with the client another element of differentiation.

Multicultural and diverse team Innovation

Attracting and retaining the best global talent to the company and with the full involvement of employees, managers, agents and other collaborators with the MAPFRE projects.

Differentiation as a key requirement to drive constant growth and improvement, using technology to service the different businesses and their objectives.

1.3. Business model and deployment

Our business model, which is centered on profitable growth, is also geared toward contributing to the social development of the countries we operate in.

Accordingly, MAPFRE:

• Is firmly committed to growth and diversification, both geographically and in products and services, because this is what strengthens the business model.
• Executes its management efficiently and continuously improves productivity, reducing structural costs continuously to improve competitiveness.
• Professionally manage the risks it undertakes, ensuring sustainable growth and results.
• Favors global management with a broad capacity for local implementation, guaranteeing the appropriate balance between corporate action and business development in each country.
• Makes the existing resources available to the entire organization, taking advantage of the synergies obtained by sharing talent, processes and tools.
• Promotes specialization in management as a permanent means of optimizing results and improving service quality.

The MAPFRE Group comprises 198 corporate entities.

1.4. Our structure

1.4.1. Shareholder structure

The Group's parent company is the holding company MAPFRE S.A., a publicly listed company. At the close of the year, the company formed part of the IBEX 35, IBEX Top Dividendo, FTSE All-World, FTSE Developed Europe, MSCI World Small Cap, Bloomberg Europe 500 Insurance and Dow Jones Spain Titans 30 indexes, as well as the FTSE4Good, FTSE4Good IBEX, Bloomberg Gender Equality and IBEX Gender Equality sustainability indexes.

MAPFRE S.A. is a subsidiary of CARTERA MAPFRE, S.L. Sociedad Unipersonal, which is wholly controlled by Fundación MAPFRE. Fundación MAPFRE owns 69.8% of the share capital of MAPFRE S.A., thereby guaranteeing its independence and institutional stability. Fundación MAPFRE carries out activities of general interest in the areas of Social Action, Insurance and Social Protection, Culture, Accident Prevention and Road Safety, and Health Promotion.

At the close of the fiscal year, MAPFRE S.A. held 15,129,098 units of treasury stock, representing 0.5% of the share capital.

SHAREHOLDER COMPOSITION

1.4.2. Functional structure

During fiscal year 2023, the Group's business activities were carried out through the organizational structure made up of four Business Units (Insurance; Assistance; Global Risks and Reinsurance) and five Regional Areas² (Iberia - Spain and Portugal - Brazil, LATAM South-Center - the Central American and Dominican Republic subregion, Argentina, Chile, Colombia, Ecuador, Paraguay, Peru, Uruguay and Venezuela), North America - the United States and Puerto Rico - and EMEA - Italy, Germany, Turkey and Malta) and Mexico, which is considered a strategic country.

The Insurance Business Unit is organized in line with the MAPFRE Regional Areas, which are the geographic units for planning, support and supervision in the regions. The Reinsurance and Global Risks units are integrated into MAPFRE RE.

² As of January 2024, the entire insurance business is configured in three geographical areas: Iberia (Spain and Portugal), International (Brazil, LATAM South-Center, Mexico, EMEA and Global Risks) and North America (United States and Puerto Rico).

In 2023, the Assistance Unit unified its brand as MAWDY in all markets.

The activities of the different Business Units are supplemented by those of the Corporate Areas³ (Internal Audit, Strategy and M&A, Finance and Resources, Investment, Business, People and Organization, External Relations and Communication, General Counsel and Legal Affairs, Operational Transformation, Technology and Operations), which have global responsibility for all MAPFRE companies worldwide in terms of defining, developing, implementing and monitoring global, regional and local corporate policies.

In recent years, the Group has transformed its structure significantly to adapt to the strategic challenges that require its size and global presence.

The Group's current organizational chart is shown in the accompanying diagram, as of January 1, 2024:

*Reporting functionally to the Audit and Compliance Committee

The following QR code can be used to access more detailed information on the organizational chart, duly updated at the time of the consultation.

³ As of January 1, 2024, the corporate areas are: Internal Audit, Finance and Resources, Investment, Business, People, Strategy and Sustainability, People and Organization, External Relations and Communication, General Counsel and Legal Affairs, Operational Transformation, Technology, and Operations.

1.5. A recognized brand

The brands most valued by society today are those that adapt to their needs, share their values and commit to caring for and improving what's important to them. And that's exactly what MAPFRE has been doing for 90 years.

Our brand is based on solid values and a well-defined purpose that guide us on the way forward:

• Our raison d'être is to work tirelessly every day, giving the best of ourselves as we stand by our clients, accompanying them. We prepare to support them and offer them what they need today and what is coming tomorrow.
• Our intention is to provide people with confidence so that they have security and strength to meet their goals. For us, trust is the basis of the relationship with our clients and other stakeholders. Our brand and work provide people with trust, security and ability to meet their objectives. We put all our knowledge, experience, innovation and service capacity so that no unforeseen event can stop our clients throughout their lives.
• Our commitment and values translate into a permanent concern for the development of the communities where we operate. We contribute to the development of a more sustainable and supportive society. Our company's ultimate sense is to generate shared value with society.

With this purpose, we care about what matters to you is the claim we use to encapsulate the trust that people place in us year after year.

Furthermore, the good reputation of the MAPFRE brand generates trust, an intangible value that can translate into a competitive advantage. It generates employee loyalty, attracts new clients and investors and validates the legitimacy of the Company. That is why we are aware of the importance of properly managing this asset.

Our Strategic Reputational Relevance Indicator, which measures the perception of the Company among its stakeholders, once again sees us maintain a good reputation during 2023. It reflects the trust, support and respect of our clients, employees and society. It is based on our strategic objectives and takes into account its impact on the business. Thanks to this, we have built and reinforced useful and appropriate metrics for the transversal management of the MAPFRE brand.

Our internal monitoring is complemented by external assessments of our company by leading national and global institutions. These most notable are detailed below.

• MERCO, Corporate Reputation Business Monitor, ranks MAPFRE Spain in fifth place in the 100 Companies with Best Reputation and first in the insurance industry. In 2023, MAPFRE was ranked 35 in the list of best-rated companies to work for in Peru. In addition, in the MERCO Talent indicator, MAPFRE Spain is in 9th position, once again leading its sector, and in Peru it is among the top 40 companies for attracting and retaining talent.
• Brand Finance recognized MAPFRE in 2023 as the 10th most valuable brand in Spain. We have climbed three places in the ranking of the 100 Most Valuable Insurance Brands in the World, holding 37th place. According to this study, MAPFRE is a leader in recognition, familiarity, consideration and reputation.
• In Mexico, Great Place to Work recognized MAPFRE for the 20th consecutive year as one of the best companies to work for.
• MAPFRE is the only Spanish insurance company to be included in the Sustainability Yearbook 2023, which recognizes those companies acting in the most responsible way for society and for the planet.
• In 2023, MAPFRE raised its FTSE4Good index sore by 8.3% compared to 2022. MAPFRE is proud to be part of this prestigious international index, which measures the most responsible companies in Spain in terms of ESG.
• The MERCO report ranks MAPFRE as the fifth most responsible company in terms of ESG and number one in the insurance industry.
• MAPFRE has been included for the third consecutive year in Bloomberg's IBEX Gender Equality Index, which measures gender equality in different aspects, and was also recognized for its commitment in this area, and in female leadership, in Turkey and Ecuador.

1.6. Strategy

The 2022-2024 strategic cycle we are in the middle of, approved by the Executive Committee and the Board of Directors of MAPFRE S.A.,the metrics of which have been calculated according to the accounting principles in force in each country, is continually subjected to a review exercise, which allows us to manage the uncertain environment we are navigating.

Below we describe the most relevant progress of the Strategic Plan over the course of 2023 and the outlook for the coming years.

Progress of the Plan in 2023

The evolution of our ambition is reflected in MAPFRE's aspirational objectives, the progress of which is as follows:

• ROE: 9.9% (excluding operational extraordinary items) compared to an initial aspiration for the 2022-2024 three-year period of 9% - 10% (average ratio).
• Growth in premiums: 9.7% compared to an initial aspiration for the three-year period 2022-2024 of 5% - 6% (average growth at constant scope).
• Non-Life combined ratio: 97.24% compared to an aspiration for the 2023-2024 period of around 96% (average ratio).
• Gender pay gap: 0.90% compared to an initial aspiration of +/-1% by 2024.
• ESG investments: 96.6% of the investment portfolio (managed by MAPFRE AM, Brazil and USA) rated in line with ESG criteria, compared to an initial aspiration of 90% by 2024 (from the Global portfolio).

In 2023, we updated and approved the Strategic Planning Rules, which helps us adapt, not only to new ways of working, but also to thinking, so that we can successfully face the challenges the future holds and continue modernizing our Company.

These rules include new approaches for dealing with current challenges and competing in an increasingly dynamic business environment.

In 2023 we carried out a profound renewal of our organizational structure, which came into force on January 1, 2024, the aim of which is to make the most of the path ahead.

Our business model will respond to the needs of all stakeholders, supporting global growth and leveraging the strengths of our company.

Our roadmap for the coming years will continue to focus on accessibility, differentiation and scalability, all underpinned by digitalization. Our talent and experience will enable us to achieve the objectives we set ourselves.

We will continue to rely on our strategic pillars of growth and profitability, efficiency and productivity, and transformation; which we will also reinforce with the broad and positive sustainability project that we have deployed. The commitment of the human team to the business will contribute to the stability of these pillars.

We want to work in greater depth on the potential for disciplined growth focused on:

• Prioritization
• Developing new lines of business
• Enriching our current businesses
• Properly allocating resources

Our objective is to reach customers and make the presence we have in the markets more effective, facing external circumstances and responding to internal challenges. Flexibility will allow us to execute our plan and focus it on achieving objectives, in addition to generating social value.

1.7. Main milestones and key figures

1.7.1. Regulatory framework and global context

1.7.1.1. Regulatory framework

The insurance and reinsurance business is a regulated activity in the European Union and in the other countries in which MAPFRE operates. The regulatory framework is quite homogeneous in the different countries, with some convergence in capital and risk-based management aspects taking place in recent years, especially after the implementation of Solvency II regulations in the EU.

Likewise, although to a lesser extent due to its lesser relevance to the Group, regulations concerning the distribution of financial products have developed significantly in recent years in the European framework, the most relevant market for MAPFRE in these products.

The Group is also subject to the regulation of capital markets, both within the European framework and in other countries, as both MAPFRE S.A. shares and certain debt issuances of this company are subject to negotiation in official markets. In addition, the shares of the subsidiary in Malta are also subject to the laws of Malta. This situation requires the Group to prepare and publish the financial information under the International Financial Reporting Standards (IFRS), regardless of the commercial and insurance regulations in force in each country and which require each subsidiary in its area of jurisdiction.

Among the new legislative developments applicable from fiscal year 2023, it is worth highlighting the entry into force of IFRS-EU 17 Insurance Contracts and EU-IFRS 9 Financial Instruments, which introduce significant changes in the valuation and presentation of financial statements.

For more information, please see 3.2. Risk identification, page 48

In addition, the Group's own activity determines that other regulatory requirements are relevant, highlighting, among others, labor regulations, data protection regulations and the defense of consumer rights.

1.7.1.2. Economic and insurance environment

Economic environment

At the beginning of 2023, the context was one of high levels of uncertainty, the unequivocal transition to a phase marked by a slowdown in economic growth and the generalization of risk events that could lead to hard landing scenarios in developed and emerging economies. With regard to price dynamics, inflation figures continued to show an unanticipated persistence and, to a certain extent, incompatible with the relative passivity of central banks. However, and despite renewed concerns in the finance sector, development at the beginning of the year contrasted with overriding the pessimistic vision, giving way to a moderate but clearly cautious optimism insofar as financial instability persisted.

Over the following quarters, the positive tone spread as economic activity proved to be more resilient than initially anticipated, in a more benign inflationary context, largely thanks to the normalization of energy prices and the fall in commodity prices. This was despite the fact that the scenario was not exempt from risk catalysts, such as banking crises, downgrades in the U.S. rating, tensions in the Middle East and the continuation of the war in Ukraine, among other factors.

In short, 2023 was characterized as a challenging year in terms of forecasts, with all kinds of risks (macro-financial, geopolitical, technological, etc.), and the year as whole was subject to a constant rebalancing of uncertainties, with fading shocks, crystallizing conflicts and emerging tensions.

However, in 2024, geopolitical difficulties and other key risks of the past are expected to continue, while monetary policy enters a period of moderation while waiting to validate the effectiveness of the measures taken so far, and fiscal policy is expected to cease to be utilized as an additional support as it has been in the past. Until now, geopolitical uncertainties appear to be contained, although the complexity of supply chains and their interconnection, as well as the presence of tail risks that did not appear in 2023, may cause them to resurface and test the resilience of world trade after global economic reorders (nearshoring/friendshoring).

In terms of economic activity, global performance is expected to be weaker, with a gradual slowdown in growth that could hit the bottom in the final stretch of 2024 or in early 2025. Inflation still needs to be controlled, as does the risk that it will recover in the short term as a result of geopolitical problems and less favorable base effects.

In short, the global economy is headed toward a short-term adjustment, seeking a balance between supply and less active demand, with new prices yet to be defined. This scenario suggests a mid-cycle adjustment, where supply advances continue gradually and positively, while demand remains at weaker or stagnant levels. Central banks around the world are waiting for this process, seeking to establish a new equilibrium rate or neutral interest rate that adapts to new price levels. The decisions of central banks will play a crucial role in determining whether the adjustment has been precise enough to prolong the current cycle of expansion, or whether, on the contrary, the accumulated effects of monetary policy indicate a classic break at the end of the cycle.

As a result, monetary policy presents an unclear and diverse road map. Inflation has not decreased enough to close the chapter, so the markets will remain alert to the decisions of central banks. With regard to fiscal policy, as spending options begin to be restricted in many economies and revenue is more limited, moderation emerges as a central scenario.

As such, a certain decline in economic growth is expected in 2024, followed by a moderate recovery in 2025. In the baseline scenario, an upward global activity scenario (2.3% and 2.6% in 2024 and 2025) is observed, while in terms of prices, average inflation is expected for these years of 4.4% and 3.3%, respectively. In the stressed scenario (of an alternative nature), weaker global economic growth is expected to stand at 1.4% and 1.5% in 2024 and 2025, with average inflation at around 4.8% and 2.9% for each of those years.

ITEM	Brazil		Spain		United States		Mexico
	2022 (E)	2023 (F)	2022 (E)	2023 (F)	2022 (E)	2023 (F)	2022 (E)	2023 (F)
GDP	3.1 %	1.6 %	2.5 %	1.4 %	2.5 %	1.1 %	3.3 %	2.0 %
(% YoY, average)
CPI	4.6 %	4.0 %	3.1 %	2.4 %	3.4 %	2.7 %	4.7 %	4.2 %
(% YoY, average)
Official interest rate	11.80 %	9.50 %	4.50 %	3.00 %	5.50 %	4.00 %	11.25 %	9.25 %
Population	217.2	218.3	47.9	48.0	335.1	336.7	129.1	129.0

Forecasts for the evolution of macroeconomic data in the main markets MAPFRE operates in are shown in the accompanying table.

(Million people)

Source: MAPFRE Economics: 2024 Economic and industry outlook. 2023 data are estimated (E) and 2024 data are forecasted (F).

Insurance environment

The effects hardened financing conditions and a credit contraction in most economies will have on the level of economic activity will continue to translate into the real economy in the form of lower growth, giving rise to a scenario of moderate growth in insurance business volume, especially for those segments more closely linked to the economic cycle and credit volume, such as Automobile insurance, those related to construction and enterprise investment or Life Protection insurance.

Furthermore, expectations of future interest rate cuts by the main central banks are generating movements in the interest rate curves with a downward trend. However, the high levels of interest rates compared to those of the last decade, as well as the expectation that they may continue to fall, will continue to favor the savings-linked Life insurance business. The environment continues to be marked by risk-free interest rate curves invested in the main markets, particularly in the United States and the eurozone, forcing insurers to adapt their offerings to a situation in which a positive term premium cannot be offered with longer term products, due to the negative slope of the interest rate curve.

With regard to credit risk, the higher cost of financing in an environment of high levels of indebtedness and high government fiscal deficits, with many of them also engaged in electoral processes, could tighten risk premiums in the coming months. Equities performed well in 2023, buoyed by expectations of interest rate cuts. This environment continues to favor the development of Life insurance products in which the policyholder assumes the investment risk, which can expand the composition of the benchmark assets toward a greater weight of fixed income in the combination of products offered on the market.

Finally, with regard to the profitability of the insurance industry, which has suffered in the last two years due to the sharp rise in inflation, an improvement is expected on the back of the upward revisions of insurance premiums and the moderation in insurance cost growth, as price increases moderate. Furthermore, higher financial income from insurers' investment portfolios will also contribute to this foreseeable improvement in profitability. However, the increase in the frequency and severity of natural catastrophic events as a result of climate change and, in some markets, greater litigation in claims could shift things in the opposite direction, putting pressure on profitability and coverage offers, and gradually widening the protection gap.

1.7.2. Key MAPFRE financial figures

1.7.2.1. Key figures under international criteria⁴

Item	December 2023	December 2022	Var. % 23/22
RESULTS
Total revenue	33,391.0	30,631.7	9.0 %
Insurance and reinsurance revenue	24,781.0	22,717.2	9.1 %
1. Release of liability for remaining coverage	20,478.1	19,162.8	6.9 %
2. Release of acquisition expenses allocated to the year	4,302.8	3,554.3	21.1 %
Attributable net result	677.2	563.6	20.2 %
Non-Life Loss Ratio	66.0 %	66.0 %	0.0 p.p.
Non-Life Expense Ratio	30.7 %	30.6 %	0.1 p.p.
Non-Life Combined Ratio	96.6 %	96.5 %	0.1 p.p.
Earnings per share (euros / 12 months)	0.22	0.18	20.2 %
BALANCE SHEET
Total assets	54,947.1	52,197.1	5.3 %
Assets under management	56,968.2	52,512.8	8.5 %
Shareholders' equity	8,466.6	7,797.1	8.6 %
Contractual service margin	2,580.4	2,289.0	12.7 %
Debt	2,743.2	2,934.7	-6.5 %
ROE	8.3 %	7.0 %	1.3 p.p.
EMPLOYEES AT THE END OF THE PERIOD
Total	30,873	31,293	-1.3 %
- Spain	11,493	11,716	-1.9 %
- Other countries	19,380	19,577	-1.0 %
THE MAPFRE SHARE
Market capitalization	5,983.6	5,574.0	7.3 %
Share price (euros)	1.943	1.810	7.3 %
Item	September 2023	December 2022	Var.% 2023/2022
SOLVENCY

Figures in million euros

The Group's consolidated revenue reached 33.4 billion euros, up by 9.0%.

Insurance revenue amounted to 24.8 billion euros, an increase of 9.1%.

Attributable earnings as of December 2023 amounted to 677.2 million euros, up by 20.2%.

Solvency ratio 198.1 % 201.2 % -3,1p.p.

⁴ As per international financial reporting standards applicable to the MAPFRE Group.

INVESTMENT PORTFOLIO

Details of the investment portfolio by asset type is shown in the accompanying graphic.

*Real estate includes both investment property and real estate for own use

The breakdown of the fixed income portfolio by geographic area and asset type is detailed in the accompanying table.

Item	Government	Total Corporate Debt	Total
Spain	9,612.4	1,572.9	11,185.2
Rest of Europe	4,104.4	3,969.4	8,073.8
United States	1,741.7	1,985.1	3,726.8
Brazil	3,765.6	1.2	3,766.8
Latin America - Other	2,658.8	722.0	3,380.8
Other countries	1,121.1	436.6	1,557.7
TOTAL	23,003.9	8,687.2	31,691.1

Figures in million euros

CAPITAL STRUCTURE

The capital structure amounts to 12.3 billion euros, of which 78% corresponds to equity.

Equity stood at just over 9.6 billion euros as on December 31, 2023, compared to 8.9 billion euros as on December 31, 2022. As on December 31, 2023, the participation of non-controlling interests in subsidiaries amounted to 1.2 billion euros, and corresponds mainly to financial companies in Spain and Brazil that MAPFRE has bancassurance agreements with. Consolidated shareholders' equity per amounted to 2.75 euros as on December 31, 2023 (2.53 euros as on December 31, 2022).

Solvency and capitalization levels

The Solvency II ratio of the MAPFRE Group stood at 198.1% as of September 2023, compared to 201.2% at the end of December 2022, including temporary measures. This ratio would be 189.7% excluding the effects of said measures. Eligible own funds reached over 9.4 billion euros during the same period, of which 83.5% are high-quality funds (Level 1).

The ratio maintains great strength and stability, supported by high diversification and strict investment and asset and liability management policies.

SOLVENCY II (million euros)

THE MAPFRE SHARE

PERFORMANCE / MAPFRE SHARE
RESULT FOR THE PERIOD ATTRIBUTABLE TO THE CONTROLLING COMPANY	677.2
Earnings per share (euros)	0.22
Figures in million euros except for Earnings per share

Item	12/31/2023
Total outstanding shares	3,079,553,273
Market capitalization (million euros)	5,984
Share price (euros)	1.943
Book value per share (euros)	2.749
Price / Book value	70.7 %
Dividend per share (last 12 months - euros)	14.5
Nominal share price (euros)	0.1

The accompanying chart shows how the MAPFRE share performed in 2023.

Source: Bloomberg and own calculations

Spanish banks: those publicly listed banks that form part of the Ibex35

Dividend and payout

On November 30, the interim dividend of 0.0603 euros gross per share was paid against 2023 fiscal year, after having proportionally applied the amount corresponding to the treasury shares to the remaining shares.

The dividend to be proposed to the Annual General Meeting as a final dividend for the 2023 fiscal year is 0.09 euros gross per share. As such, the total dividend charged to the results for fiscal 2023 amounts to 0.15 euros gross per share, which implies a payout ratio of 68.2%.

Analyst coverage

Based on the analysts' reports that cover MAPFRE's stock, the average target price of the MAPFRE share stood at 2.30 euros as per the closing of this report. As of December 31, 2023, the average target price stood at 2.10 euros.

Most analysts have given the MAPFRE stock a recommendation of buy (54%) while the remaining analysts recommend hold (23%) or sell (23%).

Credit ratings

The most significant credit ratings currently granted by the main ratings agencies are listed in the accompanying table.

Companies resident in Spain	S&P	Fitch	A.M. Best
MAPFRE S.A. - Issuer	A- (Stable)	A- (Stable)	-
MAPFRE S.A. - Senior debt	A-	BBB+	-
MAPFRE S.A. - Subordinated debt	BBB	BBB-	-
Financial Strength
MAPFRE RE	A+ (Stable)	-	A (Stable)
MAPFRE ESPAÑA	-	-	A (Stable)
MAPFRE ASISTENCIA	-	A+ (Stable)	-

Companies not resident in Spain	S&P	Fitch	A.M. Best
Financial Strength
MAPFRE SIGORTA A.S. (Turkey)	-	AA+ tur (Stable)	-
MAPFRE SEGUROS GENERALES DE COLOMBIA	-	AA col (Stable)	-
MAPFRE BHD COMPAÑÍA DE SEGUROS (Dominican Republic)	-	AAA dom (Stable)	-
MAPFRE U.S.A. Group	-	-	A (Stable)
MAPFRE PRAICO (Puerto Rico)	-	-	A (Stable)
MAPFRE MEXICO	-	-	A (Stable)
MAPFRE PANAMA	-	-	A (Stable)

1.7.2.2. Information under local criteria

MAPFRE generated a net result of 692 million euros (+7.7%) and reached an adjusted ROE of close to 10%.

• The net result would have surpassed €767 million (+19.4%), without the €75 million goodwill writedown in the United States.
• Premiums are up 9.7%, reaching nearly €27 billion, the highest figure in the company's history, while revenue grew 9.2%, reaching over €32.2 billion.
• IBERIA is the unit with the highest premium growth, with an increase of 15.8%.
• LATAM, where net results soared to €373 million, is the main contributor to earnings, up 24%.
• MAPFRE RE increases its contribution to earnings, reaching €245 million (+71%), with solid business growth.
• The ROE stands at 9.9% excluding goodwill writedown in the United States (9% without excluding this impact).
• Shareholders' equity grew over 10%.
• The Board of Directors has agreed to propose to the AGM a final dividend against 2023 of 9 cents per share, 5.9% more than the previous year.

KEY FIGURES⁵

Item	2023	2022	Var.% 23/22
Revenue	32,239.2	29,509.7	9.2 %
Total written and accepted premiums	26,917.2	24,540.3	9.7 %
Non-Life	20,961.1	19,341.8	8.4 %
of which:
Automobile	6,109.3	5,912.4	3.3 %
General P&C	8,491.4	7,658.2	10.9 %
Accident & Health	1,996.4	1,822.6	9.5 %
Reinsurance - Non-Life	7,368.6	6,581.6	12.0 %
Life	5,956.1	5,198.5	14.6 %
of which:
Life Protection	2,664.7	2,481.3	7.4 %
Life Savings	2,728.8	2,024.7	34.8 %
Reinsurance - Life	562.6	692.5	-18.8 %
Net result	691.8	642.1	7.7 %
Net result before goodwill writedown	766.8	642.1	19.4 %
Ratios
Non-Life loss ratio	69.6 %	70.6 %	(1.0) p.p
Non-Life expense ratio	27.6 %	27.4 %	0.2 p.p
Non-Life combined ratio	97.2 %	98.0 %	(0.8) p.p
Life Protection combined ratio	82.7 %	83.1 %	(0.4) p.p
Shareholders' equity	8,070.8	7,289.3	10.7 %
ROE	9.0 %	8.2 %	0,9 p.p
ROE excluding goodwill writedown	9.9 %	8.2 %	1,8 p.p

Figures in million euros

The 9.2% increase in revenue consolidated the trends from recent quarters and reflects both a relevant increase in business volume as well as an improvement in financial income.

Premiums are up 9.7%, with no relevant impact from exchange rates. This growth reflects a general improvement in business, with an 8.4% increase in Non-Life and a 14.6% increase in Life. IBERIA, LATAM and the Reinsurance business all contribute positively.

The net result reached €692 million, including the following singular events during the year:

• The occurrence of two relevant catastrophic events the earthquake in Turkey and Hurricane Otis in Mexico – with a €159-million combined impact. In 2022, there was a drought in the Paraná River basin, with a €113-million impact. Additionally, the higher frequency of weatherrelated events in Europe led to a €115-million higher net impact than in 2022.
• €46.5-million net revenue as a result of the arbitration from the end of the Bankia alliance.
• €75-million goodwill writedown of insurance operations in the United States. This had no impact on cash generation, solvency, or the Group's capacity to pay dividends.
• The hyperinflation adjustments in Venezuela, Argentina and Turkey, which had a €47-million negative impact (€41 million in 2022).

⁵ As per standardized local accounting criteria

The net result and ROE excluding the impact of this writedown stand at €767 million and 9.9%, respectively.

Regarding Non-Life business, premiums are up over €1.6 billion in the year, with 10.9% growth in General P&C, 9.5% growth in Accident & Health and 3.3% in Auto. The combined ratio stood at 97.2% (-0.8 p.p.), and the volatility and dispersion from previous quarters remain. General P&C maintained a solid combined ratio (87.6%), with a -0.3 p.p. improvement, which compensated the high loss experience that persists in the Auto business. The Auto combined ratio reached 106% (-0.1 p.p.), as a result of inflationary tension. The Accident & Health combined ratio stood at 98.9% and improved compared to the previous year (-1.2 p.p.). The gross financial result, excluding the goodwill writedown, reached €767 million, up almost €160 million, growing 26.2%.

In the Life business, premiums are up close to €760 million, driven by Life Savings in Spain. The result reflects both good technical performance in all geographies as well as strong financial income, especially in Latin America. The Life Protection combined ratio continues at an excellent level (82.7%), with a 0.4 p.p. improvement in the year. All these factors led to a 12% improvement in the Life technical-financial result.

		Insurance revenue		Attributable result			Combined ratio
	2023	2022	Δ % 23/22	2023	2022	Δ % 23/22	2023	2022
IBERIA	8,832.6	7,625.6	15.8 %	361.0	375.5	-3.9 %	99.9 %	96.8 %
BRAZIL	5,136.0	4,851.5	5.9 %	233.0	143.7	62.1 %	78.6 %	86.9 %
OTHER LATAM*	4,672.1	4,123.9	13.3 %	140.5	157.1	-10.6 %	101.8 %	100.8 %
NORTH AMERICA	2,682.1	2,589.5	3.6 %	(1.8)	(16.8)	89.3 %	105.4 %	108.2 %
EMEA	1,290.9	1,317.2	-2.0 %	(46.6)	(29.6)	-57.4 %	116.4 %	112.2 %
TOTAL INSURANCE	22,613.8	20,507.8	10.3 %	686.1	629.3	9.0 %	97.9 %	98.5 %
REINSURANCE BUSINESS	6,115.5	5,670.7	7.8 %	215.4	122.6	75.7 %	96.0 %	97.4 %
GLOBAL RISKS BUSINESS	1,740.4	1,550.6	12.2 %	29.2	20.8	40.3 %	90.4 %	90.0 %
ASISTENCIA (MAWDY)	213.7	213.7	0.0 %	5.4	6.9	-20.7 %	97.9 %	97.1 %
Holding, eliminations and other	(3,766.2)	(3,402.5)	-10.7 %	(244.4)	(137.4)	-77.9 %	0.0 %	0.0 %
MAPFRE S.A.	26,917.2	24,540.3	9.7 %	691.8	642.1	7.7 %	97.2 %	98.0 %

BUSINESS UNIT AND REGIONAL INFORMATION⁶

Figures in million euros

*Includes Mexico and LATAM SOUTH-CENTER

⁶ As per the accounting principles in force in each country.

IBERIA

Premiums in IBERIA exceeded 8.8 billion (+15.8%), Spain contributed 8.5 billion (+15.7%), while premiums in Portugal amounted to 307 million (+18.8%).

Life business volume was up 1.4 the previous year's total, reaching 2.7 billion, of which 2.3 billion correspond to Life Savings (1.6 billion in 2022).

Premiums in the Non-Life business grew by 7.8% and reflect the good performance of the General P&C business (+9.5%) driven by the Enterprise line, and the Health and Accident lines (+ 8.0%).

Automobile premiums grew 5.3% on the back of the progressive adaptation of rates to the inflationary context. The portfolio comprised more than 6.1 million insured vehicles, with a slight reduction due to risk selection measures.

The Non-Life result and combined ratio were impacted by the Automobile business, with a combined ratio of 103.6% (+ 2.6 p.p.). This business line is affected by the recovery in mobility to pre-pandemic levels, the high inflation scenario, the updating of the national claim settlement scale (a table established to evaluate the damages arising from accidents or illnesses) and a higher incidence of weather-related claims. Rates will continue to be adapted based on the evolution of expected costs.

The General P&C business was also affected by atmospheric events, especially the strong storms in Spain in the second half of the year, which affected the Homeowners, Condominiums and Enterprise business lines. The combined ratio stands at 100% (+6.2 percentage points).

The Life business continues to make a significant contribution to the result, both in the Savings and Protection segments, with the latter having a combined ratio of 69.1% at year-end.

The financial result continues to improve in a more favorable environment, with a gross contribution to the Non-Life result of 177.9 million (117.4 million in 2022).

The net result reached 361 million, of which Spain contributed 345.7 million and Portugal 15.4 million. Net realized gains had a net result impact of 73.5 million (70.3 million in 2022). The result also includes the positive impact of 46.5 million as a result of arbitration due to the breach of the alliance with Bankia (29.4 and 17.1 million in Life and Non-Life, respectively).

BRAZIL

In Brazil, premiums totaled in excess of 5.1 billion euros (+5.9%), with a stable Brazilian real. This improvement in issuing is mainly due to the positive performance of the Agricultural insurance and Life Protection businesses, which were up 7.4% and 5.6% in euros, respectively.

The Automobile business registered an increase of 0.9%, and the rapid adaptation of rates to inflation continues. The portfolio of insured vehicles reduced during the year due to risk selection measures.

The Non-Life combined ratio decreased significantly to 78.6%, due to an improvement of more than 12 percentage points (p.p.) in the Automobile line - with a combined ratio of 102.5% - as a result of rate updates. The General P&C combined ratio came in at an excellent 69.8%, supported by the agricultural business.

The Non-Life financial result continued to progress very positively, with a gross contribution of 92.3 million (80.8 million in 2022).

Meanwhile, the Life Protection business also recorded a solid combined ratio of 79%. The Life financial result also increased, supported by the country's high interest rates.

OTHER LATAM

Premiums in the region grew by 13.3%, while the net result stood at 140.5 million, with significant contributions from Mexico and Peru. Issuing in local currency was up in all countries, with notable growth in Mexico (28%), Colombia (10%), the Dominican Republic (9%) and Peru (8%).

The combined ratio rose to to 101.8% due to a rebound in General Insurance, which is partially offset by an improvement in the Automobile business.

The Life business and financial income continued to improve and contributed very positively to the result in the region.

In Mexico, premiums were almost 1.5 billion euros, up 43.4%, driven by the issuing of a significant industrial risk policy in the second quarter (which contributed 30 points to growth), together with the favorable evolution of the Mexican peso (+11.8%). In addition, both the Automobile and Life lines experienced strong growth. The net result reached 44.3 million, 43% better compared to 2022. The combined ratio stood at 98.2%, up by 1.5 p.p., with an improvement in the Automobile ratio offset by a spike in other business lines.

In Peru, premium volume was 760 million, with growth of 7.5%, while the net result stood at 38 million, highly conditioned by the effects of El Niño, which impacted the Non-Life lines especially.

NORTH AMERICA

Premiums totaled just under 2.7 billion euros in December, up 3.6%, despite the slight depreciation of the dollar (-3.3%). The largest contributor was the United States with nearly 2.3 billion and growth of 2.4%. Puerto Rico reported a premium volume increase of 10.8%, delivering 400 million euros in premiums.

The Non-Life combined ratio for the region stood at 105.4%, affected by the inflationary environment, but nonetheless 2.9 p.p. improved on the previous year.

The Automobile combined ratio for 2023 stood at 107.1%, (improved by 2.5 p.p.), and having performed better during the second half of the year. The claim experience was stable, and the rate increases already implemented in the United States (more than 29% since January 2022) should offset the expected increase in claims costs.

The General P&C combined ratio reached 100.8%, affected by several weather-related events during the year, as well as the significant increase in the cost of catastrophic reinsurance protection. The rate increase trend in Homeowners insurance continued throughout the year.

Net realized gains had a net result impact of 5.2 million euros (27.7 million in 2022).

Puerto Rico business volume was up 10.8% to over 400 million euros, with a result of 27.9 million euros.

Despite the excellent result in Puerto Rico, as a consequence of what has been described previously, the NORTH AMERICA region recorded losses for the fiscal year of 1.8 million euros.

EMEA

Premiums in EMEA totaled 1.3 billion euros, down by 2% and reflecting the fall in Life issuing in Malta.

The region recorded losses of 47 million, concentrated in Italy and Germany, as a result of the complicated automobile environment and strong storms in Europe.

In Turkey, the good performance of financial investments denominated in euros have offset both the effect of inflation and the impact of the earthquake in the first quarter, allowing the country to report positive earnings for 2023. Finally, Malta continued to make a recurring contribution to profits.

MAPFRE RE

MAPFRE RE's premiums, which include the Reinsurance and Global Risks businesses, rose by 8.8% to almost 7.9 billion euros.

The Reinsurance business grew 7.8%, while the Global Risks business was up by 12.2%.

The combined ratio improved significantly in the year to 95.6% (-1.2 p.p.), supported by the recovery of rates in the reinsurance market, especially those for catastrophic coverage.

Two significant catastrophic events, the earthquake in Turkey and Hurricane Otis in Mexico, had a combined impact on the result totaling 153 million euros. Other frequency events, including storms in Europe, were offset by the absence of such events in the Atlantic.

The financial result also grew, with a gross contribution to the Non-Life result of 128.2 million (79.5 million in 2022). Net realized gains had an impact on results of 12.3 million (2.4 million in 2022).

Net profit reached 244.6 million, representing growth of 70.6%.

MAPFRE ASISTENCIA/MAWDY

Revenues amounted to 472 million euros, representing growth of 9.2%, while the net profit was 5.4 million euros.

RECONCILIATION OF LOCAL CRITERIA AND INTERNATIONAL REGULATIONS - 2023

Shareholders' equity

HOMOGENIZED LOCAL ATTRIBUTABLE SHAREHOLDERS' EQUITY	8,071
IFRS 17 application adjustment	301
Difference in result recognition criteria and provision discounting	769
New insurance liabilities
Risk margin	-256
Loss component	-212
IFRS 9 application adjustment	32
Conversion differences	63
Total IFRS 9 and 17 adjustments	333
IFRS 9 and 17 ATTRIBUTABLE SHAREHOLDERS' EQUITY	8,467

Result

HOMOGENIZED LOCAL ATTRIBUTABLE RESULT	692
IFRS 17 application adjustment	-45
Liability for incurred claims discounting and unwinding - PAA	28
PAA risk margin	-33
PAA/BBA/VFA loss component	-52
Valuation criteria differences IFRS 4 vs IFRS 17 - BBA/VFA	12
IFRS 9 application adjustment	30
Equities	-65
Mutual funds	80
Fixed Income and goodwill writedown	15
Total IFRS 9 and 17 adjustments	-15
IFRS 9 and 17 ATTRIBUTABLE RESULT	677

1.7.2.3. Relevant facts occurring in the period that have impacted key figures

Among the relevant facts occurring over the course of 2023, the following are noteworthy:

Relevant economic facts

Impacts of inflation on insurance and reinsurance operations

Persistent inflation has lead to an increase in the cost of claims, especially in those Non-Life lines where the obligation on the insured party materializes in the form of service provision. MAPFRE has opted to implement efficiencies in its processes and reduce costs as measures to mitigate inflationary effects, as well as to transfer the minimum amount necessary to premiums, so as to allow for a sufficient rate to cover the expected costs during the term of the policy.

This updating of rates, together with the low relevance of long-tail business lines means that MAPFRE's exposure to inflationary impacts on its insurance liabilities is very limited.

In relation to investments allocated to insurance operations and the impact of inflation, MAPFRE opted in previous years to diversify into alternative investments, mainly real estate and infrastructure, which provide additional protection against persistent inflationary environments.

MAPFRE also chose to replace part of its fixed-rate bonds and debt with securities whose interest rate is linked either to inflation or central banks' interest rates, which affords some protection against the inflationary environment.

Hyperinflationary economies

In 2023, both Venezuela, Argentina and Turkey continue to be considered hyperinflationary economies, with a negative impact on the result for the period of 70.2 million euros, reflected in the heading "Result from restatement of financial statements."

Catastrophic events

Earthquake in Turkey / Hurricane Otis

The earthquake in Turkey at the beginning of the year and the hurricane that occurred in Mexico in October 2023, called Otis, impacted the results of MAPFRE RE and the local insurance company for an amount of 159 million euros.

Adverse atmospheric events in Europe

The higher frequency of atmospheric events in Europe, mainly in Iberia, Italy and Germany, had an additional net impact of 115 million euros above the level of similar claims recorded in 2022.

Relevant Corporate Events

Acquisition of INSIGNIA LIFE

On July 27, 2023, MAPFRE reported the agreement to acquire 94% of the shares representing the capital of the Mexican company PROYECTO INSIGNIA, S.A.P.I. DE C.V., an entity that owns the entire share capital of INSIGNIA LIFE, S.A. DE C.V., a Life insurance company that operates in Mexico.

The transaction involved the payment of an initial price of 1,606,160,000 Mexican pesos, with an additional variable payment to be made, which will depend on the achievement of specific objectives in the three years following the acquisition.

The definitive closing of the transaction is subject to approval by the corresponding authorities.

Termination of Bancassurance Alliance with BANKIA

In the process of resolving the bancassurance agreements between MAPFRE and BANKIA (absorbed by CAIXABANK), MAPFRE's right to receive, and CAIXABANK's obligation to pay, 120%, instead of the 110% already paid, of the market value of the insurance businesses that are the subject of said agreements, was submitted to arbitration.

On July 28, 2023, the award resolving the arbitration procedure was reported, upholding MAPFRE's claim and recognizing its right to receive 120% of the market value.

Said award would entail the obligation of CAIXABANK to pay MAPFRE an amount of 53 million euros, with a net effect on results of 47 million euros.

Impairment of goodwill in the United States

In September of the 2023 fiscal year, the Group wrote down 75 million euros of goodwill at its insurance operations in the United States. This has had no impact on the generation of cash, solvency or the Group's ability to pay dividends.

2.1. Governance structure

The Annual General Meeting is the most senior governing body, while the Board of Directors is the body responsible for the Company's management and administration. The Board has full, binding authorities of representation, management, and asset disposal, except with regard to any obligations expressly attributed to the Annual General Meeting by law or by the Company's bylaws.

The Board of Directors is the Company's primary decision-making body, and it oversees the Company and its subsidiaries. Day-to-day management is carried out by the Company's executives and senior management, and by the competent governing bodies of the subsidiaries.

Although the Chairman of the Board of Directors is the Company's most senior management representative, they are not delegated permanent powers of representation, which are instead delegated to the Board's Steering Committee, which acts as its delegate body. This allows the Steering Committee to exercise all of the Board's authorities, except for any where such delegation is prohibited by law, or prohibited by an express provision included in the Company's bylaws or in the Regulations of the Board of Directors.

The Board of Directors also has three additional Delegate Committees:

• Audit and Compliance Committee.
• Appointments and Remuneration Committee.
• Risk and Sustainability Committee.

The functions and composition of the governing bodies are as follows:

Steering Committee: This committee's functions include high-level management and ongoing oversight of the Company's day-to-day operations and strategies, as well as those of the subsidiaries. It has a maximum of 10 members, who are all of members of the Board of Directors.

Audit and Compliance Committee: This committee's functions include reporting to the Annual General Meeting on any matters that arise within its scope of authority, and overseeing the effectiveness of the internal control procedures and the process for preparing and reporting financial information, submitting proposals to the Board regarding the appointment of the external auditor, interacting with the external auditor appointed, and ensuring that the Internal Audit function remains independent and effective. It is also the body responsible for oversight to ensure that the Company and the Group are duly applying good governance practices and complying with all applicable legislation, regulations, and internal rules. It has a minimum of three and a maximum of five members, all of them non-executive Directors, and a majority being Independent Directors.

Appointments and Remuneration Committee: This committee coordinates the appointment and remuneration policy that applies to the Group's directors and senior managers. It has a minimum of three and a maximum of five members, all of them non-executive Directors and at least two of them Independent Directors.

Risk and Sustainability Committee: This committee provides support and advice for the Board of Directors in relation to defining and assessing the Group's risk management policies, determining the appropriate risk appetite, and establishing the risk strategy. It also defines and oversees the corporate sustainability policy and sustainability strategy. It has a minimum of three and a maximum of five members, all of them non-executive Directors and at least two of them Independent Directors.

For more information on the operating system of the governing bodies, please consult the MAPFRE

S.A. Board of Directors Regulations, available on the corporate website (www.mapfre.com).

The Board of Directors also features an Independent Coordinating Director who is specially empowered to convene a Board of Directors meeting or to include new points in the agenda from a Board meeting that was already convened, to coordinate and bring together the non-executive Directors and, if required, to direct the periodic evaluation of the Chairman of the Board of Directors.

This corporate governance structure ensures that there is no risk of excessive concentration of power in the Chairman and CEO, in that decision-making is shared jointly, initiating as it does in the delegate bodies of the Board, the participation of the primary senior executives on the Board of Directors and the existence of an Independent Coordinating Board Director.

The composition of the governing bodies resulting from the agreements that are expected to be adopted on March 15, 2024 is shown in the accompanying table⁷ .

Board of Directors	Steering Committee	Audit and Compliance Committee	Appointments and Remuneration Committee	Risk and Sustainability Committee
Chairman
Antonio Huertas Mejías(1)	Chairman
First Vice Chairman	First Vice
José Manuel Inchausti Pérez(1)	Chairman
Second Vice Chairwoman	Second Vice
Catalina Miñarro Brugarolas(3) (4)	Chairwoman		Chairwoman
Third Vice Chairman
Fernando Mata Verdejo(1)
Members
Ana Isabel Fernández Álvarez(3)	Member	Member		Member
Maria Leticia de Freitas Costa(3)
Rosa María García García(3)			Member
Antonio Gómez Ciria(3)		Member		Chairman
María Amparo Jiménez Urgal(3)			Member
Francisco José Marco Orenes(2)	Member			Member
Antonio Miguel-Romero de Olano(2)	Member	Member	Member	Member
María del Pilar Perales Viscasillas(3)		Member	Member	Member
Eduardo Pérez de Lema Holweg(1)
María Elena Sanz Isla(1)
Francesco Paolo Vanni d'Archirafi(3)		Chairman
Non-member Secretary
Ángel L. Dávila Bermejo	Secretary	Secretary	Secretary
Non-member Vice Secretary
Jaime Álvarez de las Asturias Bohorques Rumeu	Vice Secretary	Vice Secretary	Vice Secretary	Secretary

(1) Executive board director

(2) Nominee external board director

(3) Independent external board director

(4) Lead independent board director

⁷ Due to his retirement on December 31, 2023, Mr. Ignacio Baeza Gómez will no longer serve as a member of the Board or as First Vice-Chairman. To replace him, the Board has availed of the co-option procedure to appoint Mr. Eduardo Pérez de Lema Holweg as an Executive Director, taking effect January 1, 2024.

1. CORPORATE GOVERNANCE 2.1. Governance structure Contents

Honorary Chairman
José Manuel Martínez Martínez
Executive Committee
Chairman
Antonio Huertas Mejías
Vice Chairman
José Manuel Inchausti Pérez
Vice Chairman
Fernando Mata Verdejo
Members
José Antonio Arias Bermúdez
Alfredo Castelo Marín
Jesús Martínez Castellanos
Felipe Costa da Silveira Nascimento
Eduardo Pérez de Lema Holweg
Miguel Ángel Rosa Gámez
María Elena Sanz Isla
Jaime Tamayo Ibáñez
Member-Secretary
Ángel L. Dávila Bermejo

2.2. Diversity and experience

The Director Selection Policy was approved by the Board of Directors of MAPFRE S.A. on July 23, 2015, and it was most recently amended on December 21, 2020. That policy states that during selection of candidates, special consideration will be given to diversity in terms of knowledge, experience, age, and gender, and it also states that at least 40% of the Board's members will be women.

As of the date of this Report, 46.7% of the Board's members are women. Most of them are also members of the Board's delegate committees and/or have some other significant role:

• Catalina Miñarro Brugarolas: Second Vice Chairwoman of the Board and of the Steering Committee, Chairwoman of the Appointments and Remuneration Committee, and Lead Independent Director.
• Ana Isabel Fernández Álvarez: Member of the Steering Committee, Audit and Compliance Committee, and Risk and Sustainability Committee.
• Rosa María García García: Member of the Appointments and Remuneration Committee.
• María Amparo Jiménez Urgal: Member of the Appointments and Remuneration Committee.
• María del Pilar Perales Viscasillas: Member of the Appointments and Remuneration Committee⁸ , Audit and Compliance Committee, and Risk and Sustainability Committee

Item	2023	2022	2021	2020
% of women over Board total	46.66 %	42.86 %	33.30 %	33.30 %

The composition of the Steering Committee and the various Delegate Committees of the Board of Directors by gender as on December 31, 2023 is presented in the accompanying table.

Item	Steering Committee		Audit and Compliance Committee		Appointments and Remuneration Committee		Risk and Sustainability Committee
	M	W	M	W	M	W	M	W
Number of Board Directors	3	2	3	2	1	3	3	2
% of total	60.0%	40.0%	60.0%	40.0%	25.0%	75.0%	60.0%	40.0%

M: Men, W: Women

In accordance with the Regulations of the Board of Directors of MAPFRE S.A., the process for selecting candidates includes an evaluation to determine whether they have the competences, knowledge, and experience necessary to become a member of the Board of Directors. For this purpose, in 2020, the Company's Appointments and Remuneration Committee approved the table of competences for the Board of Directors of MAPFRE S.A., which sets down the skills and knowledge required of all Board members. This document is also updated each time an appointment or resignation occurs, with the most recent update taking place in 2023.

As of December 31, 2023, the Board comprises 15 members who, as a whole, possess knowledge, qualifications, and experience in the following areas, among others: insurance and financial markets, business strategy and company models, governance systems, financial and actuarial analyses, regulatory frameworks, auditing/accounting, sustainability, strategic consulting, law and taxation, technology and digital transformation, industry, healthcare, human resources, and teaching and

⁸ From January 1, 2024

research.

The Board members themselves also reflect geographic and cultural diversity, with members of three different nationalities: Spanish, Brazilian, and Italian.

Other Corporate Governance indicators

	2023	2022	2021	2020
Quorum for Annual General Meeting	80.64 %	82.11 %	81.58 %	86.85 %
Board Directors	15	14	15	15
- Men	8	8	10	10
- Women	7	6	5	5
Executive board directors	5	4	5	5
Independent external board directors	8	7	7	7
Nominee external board directors	2	3	3	3
Board meetings (*)	10	11	11	11
% attendance at Board meetings (1)	98.65 %	99.35 %	100 %	100 %
Steering Committee meetings	3	3	4	2
% attendance at Steering Committee meetings (1)	100 %	100 %	100 %	100 %
Audit and Compliance Committee meetings	14	11	11	11
% attendance at Audit and Compliance meetings (1)	99 %	100 %	100 %	100 %
Appointments and Remuneration Committee meetings(*)	4	3	5	5
% attendance at Appointments and Remuneration Committee meetings (1)	100 %	100 %	99.80 %	99.80 %
Risk and Sustainability Committee meetings	6	7	7	9
% attendance at Risk and Sustainability Committee meetings (1)(*)	100 %	100 %	100 %	100 %

Data presented in number format

(1) Includes in-person and online attendance

(*) In addition to the aforementioned meetings, the Board of Directors and the Risk and Sustainability Committee adopted agreements via written procedure, without a meeting, on one occasion each.

2.3. Remuneration system

Remuneration for the Board Directors is determined in accordance with the legislation applicable to corporations, the Company's bylaws, the Regulations of its Board of Directors, and resolutions passed by the Annual General Meeting.

The total remuneration of the Company's Board Directors during fiscal year 2023 is shown in the accompanying table.

	2023
Number of board directors	16
Accrued remuneration in the Company	9,027
Accrued remuneration in Group companies	1,950
TOTAL	10,977
Contributions to savings systems with vested rights and as an amount of accumulated funds	2,298

Figures in thousand euros

To comply with the legal requirements on remuneration of company directors, and to ensure ongoing application of best corporate governance practices on the subject, the Regulations of the Board of Directors govern the functions performed in relation to remuneration by the Board and by the Appointments and Remuneration Committee.

The Annual General Meeting held on March 10, 2023, approved the Compensation Policy for Directors for the 2023-2025 period, which took effect on January 1, 2023. That policy includes the various remuneration components for the Directors, which have been established based on the following general principles:

• Prioritizing medium-term and long-term value creation and profitability over short-term results.
• Reasonable proportionality between the Company's financial situation and the market standards for comparable companies.
• Alignment with the sales strategy and the Company's risk management, risk profile, objectives, and risk management practices.
• Appropriate and efficient risk management, within the established risk tolerance limits.
• Attraction and retention of talent.
• Compensation adjusted to levels of dedication, qualification, and responsibility.
• Appropriate proportions for the fixed and variable components, avoiding excessive reliance on the variable components.
• Deferred payment of a substantial portion of the variable remuneration.
• Possibility of ex-post adjustments to the variable remuneration.
• Avoidance of conflicts of interest.
• Alignment of the remuneration system for the Executive Directors with the system that applies to the

INTEGRATED REPORT 2023 40

Company's executives as a whole.

• No discrimination on the basis of gender, race, or ideology, and equal pay for job positions of equal value.

The remuneration system differentiates between Board Directors in their capacity as such and Executive Board Directors.

2.3.1. Remuneration for Board Directors in their capacity as such

Based on the principles indicated above, the remuneration system for board directors in their capacity as such is defined by the following characteristics:

• It provides transparency with regard to information about the Board Directors' remuneration.
• It provides incentives that reward dedication, qualifications, and responsibility, without presenting any obstacles to their duty of loyalty.
• It consists of a fixed amount for serving on the Board of Directors and, where applicable, for serving on its committees, with the possibility of higher amounts for those who hold specific positions on the Board and for the committee chairs. In addition, the members of the Steering Committee also receive an allowance for attending its meetings. This remuneration may be supplemented with nonmonetary compensation, such as life insurance with death benefits, health insurance, discounts on products offered by MAPFRE Group companies, and others in line with those established for the Company's personnel in general.
• It does not include any variable components or components linked to the Company's share price.
• Board Directors are reimbursed for their travel expenses and any other costs they incur when attending Company meetings or performing their functions.

2.3.2. Remuneration for executive board directors

The remuneration system for those Board Directors who also carry out executive functions at the Company features the characteristics described below. The aim is to apply measures that can ensure consistency with the strategy, interests, and long-term sustainability of the Company and its Group, and consistency with the compensation offered to the executives and employees in general, while also reducing exposure to excessive risks:

• A balanced ratio between fixed and variable remuneration components, with a focus on achievement of long-term results.
• Variable remuneration linked to economic, financial, and sustainability objectives, and to creation of value for shareholders, all in line with MAPFRE's Strategic Plan.
• Medium-term and long-term variable remuneration through multi-year incentive plans, based on long-term results, and partly via delivery of MAPFRE S.A. shares, which are subject to a lockup period.
• Variable remuneration with partial deferral and the possibility of reduction (malus provision) or full or partial refunding (clawback provision).

The Executive Board Directors do not receive the fixed amount established for Board Directors in their capacity as such. Instead, the remuneration offered to Board Directors who carry out executive functions is determined on the basis of their specific functions, levels of responsibility, and professional profiles, in line with the contents of their respective contracts and the criteria applied to

the MAPFRE Group's senior managers.

The Executive Board Directors are entitled to the benefits and contributions generally established for the Company's senior managers, and in addition, like the rest of the Company's employees, they are beneficiaries of the MAPFRE Employment System Pension Plan, savings insurance, mixed savings insurance, and other social benefits and contributions, the main characteristics of which are established in the MAPFRE Group's collective bargaining agreement.

Only Executive Board Directors receive variable remuneration, of which there are two types:

(i) Short-term variable remuneration based primarily on an annual component linked to the Company's consolidated earnings and the Group's return on equity (ROE), plus another component linked to fulfillment of specific objectives established by the Board of Directors. This remuneration is always paid in cash.

(ii) Medium-term and long-term variable remuneration, which corresponds to an extraordinary Medium-Term and Long-Term Incentives Plan 2022-2026 of a non-cumulative, multi-year nature, based on three overlapping cycles, each consisting of a three-year measurement period (2022-2024, 2023-2025, and 2024-2026), also subject to deferral rules, and all of which applies to the Executive Directors in their capacity as senior managers.

Payment of the incentives from the Plan described is conditioned by fulfillment of the financial and non-financial objectives established for each of the cycles into which the Plan is divided. It is also subject to a permanence period at the Group, under the terms established in the Plan. The incentive corresponding to each cycle consists of a cash incentive and an incentive paid in MAPFRE S.A. shares, all subject to malus and clawback provisions.

Further information on the remuneration system for the Directors is included in the Director Compensation Policy for the 2023-2025 period, and in the Annual Report on Board Director Remuneration for the 2023 fiscal year, which are available for inspection on the Company's website .

With regard to establishing an appropriate balance between the fixed and variable remuneration components, MAPFRE's compensation policy for the rest of the workforce includes a variable structure that is calculated as a percentage of the total remuneration, based on the degree to which the objectives have been achieved. The weight of the variable remuneration is determined by the position held within the organization, increasing in accordance with each employee's level of responsibility and the impact of their professional activities at the Company.

For more information, please see 5.1. Developing our people, page 90

Especially relevant personnel, and all of those who perform key functions, or whose professional activities have a material impact on the Company's risk profile, are subject to a variable remuneration system linked to achievement of financial and non-financial objectives directly connected to the strategic plans, and are also subject to deferral rules.

More information about the organizational structure and good governance can be found in the Consolidated Management Report on the Company's website www.mapfre.com.

3.1. Integrated management model

Sustainability in the insurance industry is based on appropriate management of the risks faced by the organization. At MAPFRE, this understanding is put into practice through responsible risk assumption and management, which includes emerging risks and sustainability risks.

In view of MAPFRE's global nature, there is a need for coordinated integration of the Internal Control System and Risk Management System, in order to ensure proper administration of risks throughout the Group. For this purpose:

• The Internal Control System implements the set of processes necessary to achieve the objectives established in relation to efficient and effective operations, reliability of information, and strict compliance with all applicable laws and regulations. This system is integrated into the organizational structure under the three lines of defense model, which consists of mechanisms and controls that are applied to all of the organization's activities (and therefore fully integrated into the Group's organizational structure). This system is oriented around five components: Control Environment, Risk Assessment, Control Activities, Information and Communication, and Oversight Activities.
• The primary objectives of the Risk Management System are to establish a reliable and effective risk management culture and system, ensure that all potential risks are analyzed when decisions are being made, and maintain the Group's financial solvency and solidity, all with the aim of strengthening MAPFRE's position as a trusted insurance company. It is therefore a system that promotes actions to ensure proper governance of the risks affecting the Group's companies, including potential or emerging risks and sustainability risks. The system is based on comprehensive, ongoing management of every business process, to ensure that the levels of risk assumed are aligned with the strategic objectives. It establishes the processes and procedures needed for risk identification, measurement, monitoring, management, and notification, and it also covers training and promotion of the risk culture throughout the organization.

To guarantee effective risk management, the Group has implemented a set of management policies that assign responsibilities, and that establish general guidelines, basic principles, and a framework of actions for each type of risk, while also ensuring consistent application at the Group's companies.

The responsibilities assigned under MAPFRE's Internal Control System and Risk Management System are integrated into the organizational structure, in accordance with the three lines of defense model.

For more information, please see 7.1.2. Internal control system, page 171

3.1.1. Risk Management System Governance

The Board of Directors of MAPFRE S.A. is the most senior body responsible for ensuring the efficacy of the Internal Control System and Risk Management System, by establishing the risk profile and risk tolerance limits. It is also responsible for approving the main risk management and general strategies and policies, including the policy on identifying, managing, and controlling risks, including tax risks,

and the policy on oversight of the internal information and control systems.

The Board has a Risk and Sustainability Committee and an Audit and Compliance Committee as delegate bodies, to provide assistance with the Board's functions related to the Risk Management System. Specifically:

• Risk and Sustainability Committee: This is the delegate body that supports and advises the Board of Directors of MAPFRE S.A. by performing the following functions:
  • Providing support and advice on defining and assessing the Group's risk management policies, determining the appropriate risk appetite, and establishing the risk strategy.
  • Providing oversight assistance for implementation of the risk strategy.
  • Understanding and assessing the risk management methods and tools, and monitoring the models applied to assess the results and validation of same.
  • Providing support and advice for the definition and evaluation of the Group's sustainability strategy and policy.
  • Assisting with oversight of the Company's performance in relation to sustainability.
  • Promoting, orienting, and supervising the Group's sustainability principles, commitments, objectives, and strategy.
• Audit and Compliance Committee: This body provides oversight regarding the efficacy of the Group's internal control, internal auditing, and risk management systems.

There are also other committees in place charged with the following tasks related to the Risk Management System:

• Corporate Security, Crisis and Resilience Committee: This committee ensures that the Group achieve its objectives and fulfills its business needs through proper management of risks related to safety and the environment.
• Security Committee: This body reviews the main exposures established with insurance and reinsurance counterparties.
• Investment Risk Committee: This committee monitors and controls the main exposures from investment assets and instruments, ensuring compliance with the principles established in the Investment Policy.

Corporate Risk Management establishes risk management guidelines, which are followed by the governing bodies of the individual companies after they have performed any necessary adaptations. Its functions also include coordinating the strategies, processes, and procedures necessary for continual identification, measurement, monitoring, management, and reporting of all risks to which the Company and all of its subsidiaries and investee companies are or could be exposed, as well as their interdependencies.

The Chief Risk Officer reports to the Board of Directors of MAPFRE S.A. through the Risk and Sustainability Committee and the Group's Chairman and CEO.

The work of the Corporate Risk Division is overseen by the CFO and Member of the Board, by delegation of the Board of Directors of MAPFRE S.A. and its committees. The Risk Supervisors at the companies have a double reporting structure. Organizationally, they report to their hierarchical superior at their respective company, and functionally, they report to the Corporate Risk Division.

On a quarterly basis, MAPFRE's governing bodies receive information regarding quantification of the

main risks that the Group is exposed to, along with the capital resources available for addressing those risks. They also receive information related to compliance with the limits established in the risk appetite.

The Board of Directors makes decisions regarding the actions to implement in response to the identified risks, and is immediately informed of any risks that:

• Could evolve in a manner that causes them to exceed the established risk limits.
• Could lead to losses equal to or exceeding the established limits.
• Could endanger compliance with the solvency requirements, or the ongoing operation of any of the Group's companies.

Further details regarding the Internal Control System and Risk Management System and their governance framework can be found in the Solvency and Financial Condition Reports for MAPFRE S.A. and its subsidiaries, which are available for inspection on the corporate website (see sections B.3.1, B.3.2, and B.4.1 with regard to the Internal Control System and Risk Management System at https:// www.mapfre.com/en/solvency/

3.1.2. Stakeholder participation in risk identification

The Group promotes the development of various procedures focused on ensuring that the main risks that could affect it are taken into consideration, along with any stakeholder concerns related to ESG matters.

A double materiality assessment is used to regularly prioritize the sustainability matters that are most relevant for MAPFRE and for its stakeholders (employees, customers, providers, distributors, analysts, shareholders and investors, regulatory and supervisory bodies, the media, and society in general).

For more information, please see 4.2. Materiality: Our priorities, page 61

Employees participate in a proactive manner to identify, control, and report risks, and they provide feedback regarding the Internal Control System and Risk Management System. In addition, this is complemented by the following procedures:

• The control environment survey, which is conducted at least twice a year, the objective of which is to collate opinions from all of the organization's employees on the existing control environment. This helps raise awareness regarding the risk culture within the organization and identifies weaknesses and opportunities for improvement in the Internal Control System and Risk Management System.
• The procedure for reporting and recording operational risk events, which allows employees from the first line of defense to notify Corporate Risk Management about any operational risk events or incidents occurring at their company. The Risk Management functions at the companies maintain records regarding all such events that have occurred, and they coordinate with the areas responsible to draw up the action plans required to manage them. On a quarterly basis, they also report any events with a financial impact of more than €100,000 to Corporate Risk Management. In turn, Corporate Risk Management reports to the Risk and Sustainability Committee on a quarterly basis to ensure that the Group's governing bodies receive all relevant information regarding operational risks.

Operational events and incidents are classified into the following categories, in line with international event recording standards: Internal Fraud (includes acts involving corruption or violations of the Code of Ethics and Conduct); External Fraud (includes system security and cyberattacks); Employment

Practices and Occupational Safety; Customers, Products, and Market Practices; Damage to Tangible Assets; ICT System Failures; and Process Execution, Delivery, and Management.

• The risk control procedures, which are used to perform a dynamic qualitative analysis for each process. This makes it possible for the managers from each area or department to identify the potential risks affecting the business processes and support processes. The supervisors from the areas and departments prepare internal control manuals and other descriptive documents that detail procedures and activities and identify the people who will participate in them. They also identify the associated risks and the controls used to mitigate them. By understanding and documenting these controls, the supervisors from the various areas and departments at MAPFRE companies are able to assess the effectiveness of the established controls, can determine whether the relevant risks identified are sufficiently controlled, and can implement any corrective measures deemed necessary.

3.1.3. Risk training

During 2023, 10,636 people received 21,339.37 hours of risk management training, and 34% of the active workforce completed some form of training on this subject during the year.

The accompanying table presents a breakdown of this training by level of responsibility.

Level	No. of active people trained
Management and expert management	483
Middle managers and experts	1,780
Advisors	5,468
Associates	2,905
Total	10,636

In addition, all members of the Board of Directors received ongoing training throughout the year, in accordance with the previously defined training plan for Directors. Over the course of 2023 all nonexecutive board directors participated in two in-person training workshops specifically addressing the subject of risks, which covered the following areas: Introduction to Risk Management at MAPFRE, Operational Risk, Cybersecurity Risk, Due Diligence Regulations (ESG-B Sustainability), plus other topics related to use of Artificial Intelligence at MAPFRE, Reinsurance Contracts and KPIs, Digital Business, sustainability regulations, the Group's sustainability objectives, the new IFRS rules, and the scheme used in management remuneration.

As a complement to this in-person training, all board directors have access to a broad catalog of online content on digital capabilities in addition to a specific itinerary for them on different subjects and corporate policies such as: Prevention of Money Laundering, Money Laundering and Terrorist Financing (directors' responsibilities, MAPFRE Culture, Data Culture, Digital Culture, Comprehensive Security, Internal Control, Regulatory Compliance, Solvency, Code of Ethics and Conduct, Sustainability, Disability, Equality, Innovation, Data Protection, Criminal Risks and Global Program insurance.

Throughout this year, 100% of non-executive directors received, together, a total of 100 hours of risk training.

3.2. Risk identification

At the beginning of each year, Corporate Risk Management conducts a study to ensure identification of all material risks that could affect the Group's ongoing ability to comply with the business plan, as well as other risks that could emerge over a longer time period (5-10 years).

This information was also updated throughout the year, to include any other risks that had become more significant during recent months. This was done by analyzing a variety of external risk reports, and by taking into account the supervisory body's perspectives. In January 2023, more than 300 key employees from Group companies operating in 25 countries participated in this procedure for identifying material risks.

This process also takes into account the results of the double materiality assessment, so as to be able to identify ESG issues relevant for MAPFRE and its stakeholders.

For more information, please see 4.2. Materiality: Our priorities, page 61

3.2.1. Material risks

Some of the main subjects identified as risks that could affect the Group during the period covered by the business plan are listed below, in order of significance.

• Inflation

The current period of high inflation began in the spring of 2021, as a result of supply chain issues that arose in the wake of the COVID pandemic (especially caused by the impact on energy prices and availability of spare parts, which compounded production-related problems, as well as by expansionary fiscal policies), and these issues were further intensified by the conflict in Ukraine. Higher production costs were passed on to prices and salaries, producing second-order effects and inflation rates higher than any seen during the last 30 years. This period of high inflation, including underlying inflation, continues to persist, and uncertainty continues to surround its evolution in terms of intensity and duration.

From the perspective of the (re)insurance industry, inflation risk arises from unanticipated inflation rates that have an impact by increasing the necessary management expenses and loss experience for non-life products, as the premiums charged are found to be insufficient to cover the related claims and costs. In some lines of business and markets, the process of adapting these premiums takes place more slowly, so a certain amount of time is required before the products' technical profitability can be restored.

In addition, as inflation rises, household purchasing power drops, and this can have an impact on new underwriting for both Life and Non-Life products.

To address this situation, MAPFRE applies a prudent approach to risk selection and quantification, along with an investment policy characterized by a proportion of fixed-income investments with yields linked to local inflation rates, or to central bank benchmark rates. This produces sufficient resources to cover the claims of the insured parties, even under circumstances of unexpectedly high inflation.

Although these issues involving inflation risk and insufficient premiums have decreased compared to the high levels of uncertainty existing at the beginning of 2023, this risk remains high because of factors such as uncertainty about the cost of inflation for new types of coverage (for electric vehicles or solar power systems, for example), the social inflation component, and rising costs for reinsurance protection.

• Cybersecurity risk and ICT⁹ system failures

The prevalence and sophistication of malicious cyber activity has increased substantially, creating ongoing challenges in terms of maintaining adequate security levels for corporate information and critical systems. Cloud computing is associated with high risk levels because of the large amounts of concentrated data managed. From an operational perspective, certain cyberattack risks can result in prolonged downtime for services provided by external parties, and can lead to cases of widespread fraud affecting customers, which make use of confidential information previously compromised by such attacks.

In addition, changing customer habits, digitalization, and models based on self-service have increased the demand for identification and authentication systems, use of biometric identification, and multiple uses of identifiers. These are all factors that can increase the risk of fraud based on identity theft or data theft. At the same time, there is a growing threat from organized cyberattacks originating in particular countries or regions. This is especially true in the turbulent geopolitical environment that has come to exist, where organized groups of hackers are attacking critical infrastructure elements and stealing valuable data or confidential information from companies. These attacks are becoming increasingly complex, and the potential for use of artificial intelligence is heightening these concerns. Materialization of these risks could affect business continuity, and theft of sensitive data, particularly in relation to healthcare, could have negative reputational consequences not just for particular insurance companies, but for the insurance industry as a whole.

To respond to these issues, MAPFRE deploys advanced capabilities focused on boosting operational resilience. MAPFRE's Cyber Resilience Plan establishes the overall framework for the Group's cyber risk mitigation measures, and it details the necessary procedures for evolving and improving its position with regard to cybersecurity, privacy, data protection, and digital operational resilience.

• Macroeconomic environment

The period of high inflation that began in 2022 has caused central banks to react by abruptly raising their benchmark interest rates to levels not seen in the last 15 years. These higher interest rates have led to decreased valuations for investments, not just in relation to fixed-income securities, but also by increasing volatility in the markets.

At the same time, this series of interest rate hikes has increased financing costs for companies as well as households, which is having a negative impact on economic outlooks.

On September 14, 2023, the Governing Council of the European Central Bank (ECB) decided to raise its three key interest rates by 25 basis points. As a result, the interest rates on the main refinancing operations, marginal lending facility, and deposit facility were increased with effect from September 20, 2023 to 4.50%, 4.75%, and 4.00% respectively.

Although there are now signs that further interest rate hikes are less likely over the short term, no decreases in interest rates are expected to occur until well into 2024.

In view of these indications, the uncertainties existing at the beginning of the year with regard to changing interest rates have decreased, in turn decreasing the potential for new valuation reductions affecting the fixed-income securities held.

⁹ Information and Communication Technology

To address this overall situation, and as mentioned in the section on inflation risk above, MAPFRE applies a prudent approach to risk selection and quantification, along with an investment policy characterized by a proportion of fixed-income investments with yields linked to local inflation rates, or to central bank benchmark rates. This produces sufficient resources to cover the claims of the insured parties, even under circumstances of unexpectedly high inflation.

• Sociopolitical risk

Geopolitical tensions have been increasing in recent years, caused by events such as Russia's invasion of Ukraine, trade tensions between the USA and China, the situation in Israel and the Gaza Strip, and increasing incidents of cyberattacks.

Geopolitical tensions impact on international trade, the economic situation, financial fragmentation, and capital movements, all of which can lead to lower valuations for financial assets, while also causing a slowdown in terms of insurance activity in the geographies involved.

Because MAPFRE operates in a large number of countries, there is a real possibility that its insurance activities, and the valuations of the financial investments supporting them, could be altered as a result of these sociopolitical tensions. Some of the geopolitical events that could lead to such effects include potential worsening of the conflict between Russia and the NATO countries, an increase in cyberattacks by organized groups with governmental support (which can affect governments and public and private organizations), and fragmentation of the European Union as a result of updated tax legislation.

However, prudent selection of investments, located in countries where the risks are being underwritten, combined with efficient management of surplus capital can help mitigate the financial effects of this sociopolitical risk.

• Workforce and organizational risk

Risks related to the workforce include the potential for losses caused by inadequate or deficient management involving:

• i) a lack of training, experience, or skills in a company's employees;
• ii) inability of a company's workforce to adapt to its vision, purpose, and values;
• iii) aspects related to organizational structure or sizing of departments;
• iv) employee health and safety.

MAPFRE considers proper talent management to be a fundamental aspect of its operations. Under the current circumstances, characterized as they are by continuing transformation and a changing society, there is a need to make the organization more flexible, while also increasing technical knowledge. Levels of employee turnover have increased in recent years, and this also affects the ability to implement regulatory changes. MAPFRE's workforce management strategy is focused on people, based on the pillars of development, promotion, and well-being. To implement this strategy, the Group's companies are focused on addressing the strategic business needs; active listening with regard to the employee experience; and creating a work environment that emphasizes well-being, inclusivity, and diversity, where people can express themselves freely and develop their capabilities through continual learning, self-development, and job mobility. Other important aspects include training in digital skills and new work methodologies, and social sustainability through continual improvement of job quality and employability.

• Natural and human-induced disasters

This is the risk arising from the possible impact on the results of unusual concentrations of claims arising from natural disasters (earthquakes, tsunamis, volcanic eruptions, landslides, electromagnetic storms, etc.) or extreme weather events (flooding, storms, etc.) that lead to an increase in the processing of associated benefits, as well as the resources and capabilities necessary to manage them.

This risk includes natural disasters caused by events caused by climate change. The effects of i) the highest frequency of atmospheric events in Europe, mainly in Iberia, Italy and Germany, with an additional net impact of 115 million euros on the claims recorded in 2022, ii) the earthquake in Turkey at the beginning of the year and the hurricane in Mexico in October 2023 impacted the results of MAPFRE RE and the local insurance companies in an aggregate net amount of 159 million euros.

Some of the countries MAPFRE operates in have high exposure to natural disasters or extreme weather events. Damages caused by natural disasters give rise to the payment of compensation, which, depending on its amount, may have a significant effect on the balance sheet. In addition, MAPFRE has buildings, offices and employees worldwide that may also be affected by the increase in the frequency and intensity of natural disasters.

MAPFRE identifies natural perils as significant criteria when defining its underwriting strategies, and it applies methods based on technical rigor, with an emphasis on risk selection, accumulation control, and adjustment of premiums.

The Company's underwriting of catastrophic risks is based on specialized catastrophe exposure reports, which estimate the magnitude of losses that would occur in the event of a particular type of disaster. The Group also has systems of procedures and limits that provide control over the level of insurance concentration risk.

MAPFRE RE (the Group's reinsurance company) is responsible for advising on and placing reinsurance and retrocession capacity for the Group's catastrophic and severe risks. However, the reinsurance market has tightened, which has caused the cost of catastrophic protection to rise with an almost unprecedented intensity, which in turn necessitates additional control over underwriting and pricing for catastrophic risks.

MAPFRE develops, implements, tests, updates, and certifies business continuity plans, which are designed to ensure the personal safety of its employees and collaborators, the operational resilience of its companies, and its ability to comply with its obligations to its customers and stakeholders. For this purpose, MAPFRE has specific capabilities in place that ensure a consistent and appropriate and continuous response to all of these need, regardless of location.

3.2.2. Emerging risks

Some of the most significant emerging risks that could have a potential impact on the Group over the longer term (5 years) include:

• Climate change. More information:
• Products and services
• Financial instability and crises caused by conflicts and resource scarcity

For more information, please see 3.4. Risk and opportunities arising from climate change, page 53 and 8.2. Additional information notes, Note 1. Emerging risks, page 192

3.3. ESG risks and opportunities

MAPFRE conducts ongoing analysis of factors that have, or could have, an impact on its business should they materialize, in relation to its investment and underwriting activities. These analytics take into consideration environmental, social, and governance (ESG) factors, by incorporating additional information about societal changes and transformations, and about the expectations of the Company's shareholders and the markets.

As a global insurance company, MAPFRE can play an important role by helping society identify sustainable development opportunities in the insurance industry and offering its customers products and services that can facilitate the transition to a low-carbon economy.

For more information, please see 4.5.1.4. Sustainable investment products, page 79 and 4.5.2.4. Sustainable underwriting products and services, page 83

Based on our analysis of these ESG factors and how they could affect our business over the short, medium, and long terms, the relationships between these factors and the risk types established by the company are determined. Then, where appropriate, they are added into that typology, to ensure that they will be adequately covered by the prevention and mitigation measures.

For more information, please see 4.2. Materiality: Our priorities, page 61 and in Chapter 8.2 Notes on Additional information, Note 2. Material topics, page 194

3.4. Risks and opportunities arising from climate change

3.4.1. Adapting the business to climate change

The concept of climate resilience means that organizations develop the ability to adapt to respond to the challenge of climate change, better managing transition risks and associated physical risks and taking advantage of related opportunities.

The insurance industry plays an important role in adapting to climate change by acting as a climate risk management tool, which enables society to mitigate losses caused by extreme weather events. In addition, as institutional investors, MAPFRE plays a fundamental role in helping finance the transition to a low-carbon economy.

MAPFRE has declared sustainability as one of its strategic priorities, with a special focus on the fight against climate change, integrating its commitments to align its underwriting, investment and operational portfolios with scenarios compatible with the Paris Agreement and improve climate resilience through execution of a sustainable business model.

We are working on measuring the impact of the different scenarios on our strategy and business, in addition to excluding certain risks from our investment and underwriting portfolio, promoting sustainable finance, creating environmental products and services, raising premiums in certain lines of business, and pushing adaptation measures against the impacts of climate change.

For more information, please see 4.5. Our business and sustainability, page 75 and the MAPFRE Group TCFD report at www.mapfre.com/en

In addition, we have established net zero objectives in our investment portfolio (we are members of the Net-Zero Asset Owner Alliance (NZAOA)) and in our underwriting portfolio for 2050. To this end, we have established intermediate neutrality objectives for our operations by 2030 and, in the context of the NZAOA, we have established intermediate decarbonization objectives by 2030.

For more information, please see 4.5.1.3. Metrics and objectives, page 77 and 6.2. Our Environmental Footprint Plan, page 154

In addition, due to the nature of MAPFRE's business, it's essential for the Company to have solutions and procedures in place that safeguard people's health and lives, but also to be in a position to resume processes and service provision in order to reduce the impact on clients and the business in the event of a natural disaster.

For this reason, MAPFRE develops, implements, tests, updates and certifies its Business Continuity Plans, which are aimed at guaranteeing, in addition to the personal safety of employees and collaborators, the operational resilience of Group companies, so that they can make good on their obligations to clients and other stakeholders.

MAPFRE has continuity plans in place in all of the countries in which it operates to anticipate the adverse effects of climate change (risks assessed in the Continuity Plan) and thus take appropriate measures to prevent or minimize the damage they may cause, ensuring the maintenance of the services provided to clients.

For more information, please see 8.2. Notes on additional information, Note 10. Cybersecurity and business continuity, page 249

3.4.2. Risk management and opportunities related to climate change (TCFD)

The Group has designed its road map for climate change by adopting in 2021 the guidelines of the Task Force on Climate-related Financial Disclosures (TCFD) report, created by the Financial Stability Board, and thus contribute to generating accurate and objective information on the risks of climate change.

For the third year, we have therefore prepared a report on the company's management of climate change. Through the structure proposed by the TCFD, MAPFRE reports the risks and opportunities of climate change and its integration into the company's business and activities.

Within the objectives of the Sustainability Plan 2022-2024, MAPFRE incorporates the implementation of the recommendations of the Task Force on Climate-related Financial Disclosure (TCFD) and has established an action plan for compliance at the close of 2024.

Governance

The Board of Directors of MAPFRE S.A. is the body in charge of decision-making and supervision of the MAPFRE Group and is responsible for overseeing all of its affiliated entities, being the body responsible for establishing and supervising the Group's sustainability policy and strategy.

The responsibilities of the MAPFRE Board of Directors related to sustainability and, specifically, regarding climate change can be classified into strategic and monitoring functions:

• Strategic functions: approval of the Corporate Sustainability Policy and the Group's sustainability strategy, ensure the effectiveness of the Company's Risk Management system, establishment of the risk profile and tolerance limits, as well as approval of the main risk management strategies and policies, including sustainability and climate change risks.
• Monitoring of objectives: monitoring the development of and compliance with the Group's Sustainability Plan, for which purpose it is regularly informed of the progress and the level of achievement of the Group's commitments included in said Plan; compliance with the limits established in the Risk Appetite Policy, approved by the Board itself, which establishes the level of

risk that the Group is willing to assume. Those risks include catastrophic risks, which could be affected by climate change.

MAPFRE's Board of Directors has a Steering Committee and three delegate committees (Audit and Compliance Committee, Appointments and Remuneration Committee, and Risk and Sustainability Committee) in place and issues the rules of conduct for all of them and for the Executive Committee. The Risk and Sustainability Committee is the body in charge of supporting and advising the Board of Directors in defining and evaluating risk management policies, determining risk appetite and risk strategy, as well as defining and supervising the corporate sustainability policy and sustainability strategy.

Executive responsibilities in terms of sustainability and climate change are distributed among the Executive Committee, the different management committees of the company, the work groups and the areas and departments that assume the different functions to be executed and that enable MAPFRE's objectives in this respect to be met.

Strategy

MAPFRE integrates all considerations on climate change risks within the company's strategy and the development of the Sustainability Plan 2022-2024. Work is being done to adapt financial planning to climate change, both from a risk and an opportunity approach, executing the necessary actions to transform the company into a low-carbon company, as well positioning it to contribute to and strengthen resilience and the Company's ability to adapt to the risks of climate change and climaterelated natural disasters.

The company addresses and manages the main climate change risks it faces to give continuity to the business plan, through mitigation actions such as:

• Adequate modeling, due to the effect on the setting of premiums and rates of insurance and reinsurance companies, with the aim of dealing with the increase in natural catastrophes as a consequence of climate change.
• The compilation of internal information related to claims that have been caused by natural risks and market information necessary for the modeling of catastrophe risks, with the aim of carrying out an adequate assessment of climate-related risk.

The Group identifies the risks (physical risks and transition risks) and the opportunities deriving from climate change that may have an impact on the Company. To analyze and evaluate the impact generated by the risks and opportunities derived from climate change, the Company uses different time frames depending on the different risk and opportunity assessment processes implemented. MAPFRE proposes quantitative and qualitative approaches taking into account medium- and longterm horizons in which climate change can develop. It also carries out climate change stress tests in specific cases.

The short-term horizon is used to identify material risks, a process aligned with strategic planning. The medium-term horizon is used to identify emerging risks, whose time horizon goes beyond the strategic planning period. It is also used to assess the transition risk. Long-term horizons are managed in climate change scenarios for physical risk assessment, with time horizons until 2080.

The development and analysis of different climate change scenarios will make it possible to assess possible losses arising from the risks derived from climate change. The objective is to prepare for the consequences of climate change by identifying the associated risks and taking measures to mitigate the resulting impacts.

The management of these risks helps in decision-making in underwriting, acquisition, investment or innovation in products and services, essential for adapting MAPFRE's financial planning process to climate change.

In underwriting, MAPFRE identifies the increase in catastrophic claims or extreme weather events as a result of climate change as one of the risks with a significant impact, which leads to an increase in the loss ratio, as well as the resources and capabilities necessary for its management. This identification allows us to define underwriting strategies, using methods based on technical rigor, highlighting risk selection and the control of accumulation and the suitability of rates.

The company also implements the Sustainable Investment Policy from a dual perspective: "a posteriori" approach (the Risk Committee examines and reviews the ESG score for all portfolios) and "a priori" approach (ESG criteria are integrated into the investigation of possible investments).

MAPFRE offers its clients a wide range of investment products and sustainable insurance products in the different regions in which it operates. In addition, the Company markets other alternative and sustainable investment products, such as the infrastructure fund launched with Abante or investments in renewable energy

Business alignment with the 1.5ºC scenario

• Underwriting: MAPFRE incorporates a series of environmental commitments into its underwriting policy so as to align underwriting activities with the Paris Agreement scenario, thereby reinforcing the commitment assumed to be a zero-emissions company by 2050.
• Investment: As defined in the Responsible Investment Framework and in the MAPFRE AM Integration Policy, ESG criteria are integrated into all investment processes, taking into account the criteria defined by the applicable regulations, market trends and applying prudent investment criteria, seeking to create long-term value and incorporating ESG factors in addition to traditional information, reinforcing the commitment made to be a zero-emissions company by 2050. The The company reinforced the environmental exclusion commitments over the course of 2022.

Risk management

MAPFRE has implemented internal control processes and an effective risk management system that complies with local regulations and promotes action on risk governance, the identification of emerging risks, along with training and dissemination of a risk culture throughout the organization. The company has a procedure in place designed to mitigate and adapt to the risks deriving from climate change. This procedure is composed of:

• Climate change risk identification process: The Group permanently analyzes those factors, including ESG aspects, which, if they materialize, may have an impact on the business or could have in the short, medium and long term. Based on this analysis, their relationship and inclusion in the risk typology established by the company is determined, and the adoption of prevention and mitigation measures is considered.

Every year, the Corporate Risk area promotes an exercise to identify material risks, making it possible to identify perceived risks, including sustainability and climate change risks that may affect the Group's performance, either throughout the business plan or materialize beyond the same.

MAPFRE has internal control processes and an effective risk management system in place that comply with local regulations and promote action on risk governance, risk identification and assessment, including emerging and sustainability risks. Training and dissemination of the risk culture within the organization is also provided.

Subsequently, materiality analyzes are carried out, which assess the risks, including those deriving from climate change, based on their relevance for participating stakeholders (employees, providers, customers and experts) and in line with the impact that these issues have on MAPFRE. This analysis makes it possible to identify potential risks for the company and establish the appropriate prevention and mitigation measures.

• Risk assessment process related to climate change: The Own Risk Solvency Assesment (ORSA) report, integrated into the risk management system, features mechanisms to identify, measure, monitor, manage and report risks in the short, medium and long term that have been identified by the Group. This process also measures the adequacy of capital resources based on the knowledge of its real solvency needs. Every year, the Corporate Risk area coordinates the preparation of the ORSA report, which is submitted for approval by the Board of Directors.

Currently, a working group has been set up with the objective of implementing a procedure for the identification and prioritization of risks linked to climate change. This process will make it possible to identify the most material combinations of country/exposure/industry/hazard across the Group. In a later phase, different methodologies will be analyzed to calculate the impact of climate change risk scenarios for physical and transition risks for the most relevant combinations. These scenarios and their impact will be considered in the ORSA report.

• Integration of climate change risk into the rest of the general risk categories: The integration of ESG risks into traditional risks is carried out naturally as part of the management and control processes, using the Risk Management System and a taxonomy that incorporates climate change risks. Every year, MAPFRE's Corporate Risk area draws up a risk map for the Group, based on the responses to evaluation questionnaires, with the aim of identifying the material risks that may impact the different companies. These questionnaires collate a perspective on the probability of occurrence and the impact of risks in accordance with the classification of general risk categories, among which risks is climate change.
• Aggregate exposure and losses attributable to catastrophic risk: The Group has available to it specialized analyzes of catastrophic exposure that estimate the scope of losses in the event of a catastrophic event. Stress tests and scenario analyses are conducted periodically so as to show the impact this risk could have for the Group.

Action in the face of natural catastrophes requires adequate forecasting of these events and the correct assessment of the losses they may cause, since they are an integral part of managing an insurance company. The economic impact that the company will have to be able to provision is dependent on this exercise, as is determining the response the company is in a position to give to its customers.

• Managing climate change risks and opportunities: Managing climate change risks is primarily focused on increasing understanding of increased catastrophic hazard from climate change and improving exposure management through:
  • Incorporation of climate change in the decision-making of the business strategy.
  • A detailed knowledge of insureds' risks (such as their geolocation and the characteristics of their assets), in order to ensure the correct coverage is in place and that catastrophic protection is properly selected.
  • Proper management and control of accumulations to optimize the use of capital.
  • Maximum collaboration and transparency between the insured and the insurer to facilitate the best evaluation and pricing.
  • Taking out reinsurance coverage.
  • Application of scenarios for material country/exposure/industry/hazard combinations.

Metrics and goals

Objectives

MAPFRE is aware of the role of the financial sector in contributing to the mitigation and adaptation to

climate change. For this reason, the company develops actions in the different businesses of the Group to contribute to the transition to a low carbon economy, as explained in the accompanying table.

UNDERWRITING	INVESTMENT	OPERATIONAL ASPECT
Net Zero in 2050	Net Zero by 2050	Corporate Environmental Footprint Plan 2021-2030
Expansion of the ESG analysis model to the underwriting portfolios in Spain, Brazil and facultative reinsurance.	Net-Zero Asset Owner Alliance (NZAOA). NZAOA framework intermediate objectives for 2030. 90% of the investment portfolio to be rated in line with ESG criteria globally by 2024. Reduction of 10% in MAPFRE AM investment portfolio emissions by 2024*.	Neutrality by 2030. 50% reduction in carbon footprint by 2030. 100% renewable energy by 2030. Reduction of total energy consumption by 40% by 2030.
*With respect to the baseline year of 2019

Metrics

At MAPFRE we use various indicators in our business lines to monitor, evaluate and direct climaterelated aspects.

In addition to reporting on internal operational metrics, we have expanded the scope of calculating the investment portfolio footprint to other management centers, thanks to which the emissions of 85% of the assets under management of the MAPFRE Group are known. During 2023, we continued to make progress in calculating the carbon footprint of our insurance and reinsurance portfolio.

A detailed list of climate-related indicators can be found in 4.5.1. Integration of ESG aspects into MAPFRE's investment processe, page 75 and 4.5.2. Integration of ESG aspects into MAPFRE's underwriting processes, page 81 and in 6. Committed to the environment, page 151.

For more information about MAPFRE's activity in relation to the risks and opportunities associated with climate change, please consult the MAPFRE TCFD 2023 Report at https://www.mapfre.com/en/ sustainability/business/.

4.1. Our Sustainability highlights

0.90% €33.9BN 25%

investments

Reduction in the Group's carbon footprint

ESG-approved providers

of financial advisors trained in ESG Essentials

awareness-raising initiatives reached tow truck drivers, claim adjusters and repair shops

Digital ethical framework 57 tons

for the ethical and socially responsible use of information and communication technologies

of parts recovered from decommissioned vehicles for reuse

4.2. Materiality: our priorities

The materiality analysis we carry out each year is key to advancing our Strategic Plan 2022–2024 and reinforcing our commitment to sustainability. The results of the analysis identify our main impacts, risks, and opportunities, and when integrated into the company's decision-making and management processes, they shape and guide the Group's strategy to make responsible progress in the right direction. We conduct this analysis in a participatory manner, actively listening to all our stakeholders and business units in the main countries we operate in.

In 2023, we improved our methodology by incorporating the concept of financial materiality, which, together with that of impact materiality used in previous years, enables us to analyze all topics more accurately and determine the most relevant ones. In doing so, we establish priorities for both stakeholders (outward) and MAPFRE (inward).

Our double materiality study was conducted in line with the requirements of the GRI 3: Material Topics standard. To this end, real and potential impacts on the economy, the environment, and people were assessed and integrated, including impacts on human rights.

We developed the double materiality study considering the company's global nature. As such, we analyzed the following impacts across all the organization's activities and business relationships:

• negative and positive
• in the short, medium, and long term
• real and potential
• intentional and unintentional
• reversible and irreversible

In order to identify and address the main stakeholders' concerns, the organization consulted both internal and external sources and all stakeholders identified by MAPFRE.

Materiality analysis

The materiality analysis was conducted globally in the Reinsurance, Global Risks and MAWDY business units and the insurance units in the main countries we operate in (Spain, Brazil, USA, Mexico, Peru, Puerto Rico and Germany), which facilitated us in obtaining a global vision of the Group in a study that covered 87.5 % of its business volume.

Governance and strategic integration

The Sustainability Operating Committee and the Risk and Sustainability Committee, the latter being a delegate body of the Board of Directors, review the materiality process and its results matrix annually and supervise the evolution of material topics. In 2023, once the stakeholder consultation was completed and the double materiality matrix was structured, both committees approved the process and its results. Since its approval, the prioritization of material matters has been integrated into the company's management and decision-making processes, and in turn, its strategy.

4.2.1. Approach, process and methodology

This new double-materiality approach evaluates material topics in relation to two main areas:

• Financial materiality: Includes the economic and financial impact of the risks and opportunities associated with the company's activities.
• Impact materiality: Considers the impact of the company's activities on the environment and how these impacts affect stakeholders.

This analysis allows us:

• 1. To determine stakeholders' concerns, identify initiatives, and establish priorities.
• 1. To measure the potential financial impact for the business and define both risk control and mitigation measures and initiatives to leverage the opportunities that arise.
• 1. To help prioritize sustainability initiatives and align them with the Group's strategic initiatives.
• 1. To identify how each material topic of the materiality analysis impacts the Sustainable Development Goals (SDGs).
• 1. To use the results in the Group's risk identification processes.

For more information, please see 3. Risk management, page 43

4.2.2. Phases and result: double materiality matrix

PHASES OF THE DOUBLE MATERIALITY STUDY PROCESS

1. Definition of the scope of analysis, mainly considering material topics and stakeholders:

2. i. Material matters: Identification of a list of material matters based on internal mapping, analysis of regulations and trends, listening to stakeholders, and a comparative analysis of leading insurance company practices.

3. ii. Stakeholders: Identification of the most relevant stakeholders for MAPFRE.
4. iii. Listening channels: definition of the different listening channels tailored to each stakeholder (questionnaires, interviews, focus groups, internal analyses, etc.).
5. 1. Evaluation of materiality, considering impact materiality and financial materiality:
   2. i. Impact materiality: Collection of results from the listening channels to assess the relevance of the topics for stakeholders and evaluation of the scope and remediable nature of the negative impacts. Subsequently, the probability of potential impacts and negative impacts that do not affect human rights was also assessed.
   3. ii. Financial materiality: Assessment of severity and probability of risks and opportunities considering the short, medium, and long term.
6. 1. Preparation of the report on the study, consolidating the results for impact materiality and financial materiality.
7. 1. Integration and linking of the results with the strategic plan, the sustainability plan, and the Sustainable Development Goals (SDGs), as well as to prepare information on the Group's sustainability status.

The actions carried out in each phase of the process and the results obtained are detailed here.

Phase 1. Definition of sustainable matters, stakeholders, and listening channels

Taking the sustainability topics analyzed in MAPFRE's 2022 materiality exercise as a starting point, they were complemented by a study of topics from external sources, mainly the European Sustainability Reporting Standards (ESRS) that complement the Corporate Sustainability Reporting Directive (CSRD), the proposal for an EU Directive on Corporate Sustainability Due Diligence, the GRI and Sustainability Accounting Standards Board (SASB) standards, the Task Force on Climate-related Financial Disclosures (TCFD) and CDP recommendations and guidelines, the ISO 50001 and ISO 14001 certifications, The Global Risk Report 2023 published by the World Economic Forum, the CRO Forum's Mind the Sustainability Gap report, the Financial Stability Report December 2022 by European Insurance and Occupational Pensions Authority (EIOPA), and a benchmark for market pairs; as well as internal sources such as the MAPFRE risk matrix.

As a result of the above, a list of twenty-one topics was defined for the 2023 study, grouped into four categories: environmental, social, governance, and sustainable business.

RELATIONSHIP OF THE SUSTAINABILITY ISSUES INCLUDED IN THE DOUBLE MATERIALITY STUDY

Stakeholders were identified taking into account those already defined by MAPFRE in its stakeholderrelations strategy, together with an analysis of those identified in external sources.

For more information, please see 5. Committed to stakeholders, page 88

Once the stakeholders were identified, the most appropriate listening channels were specified to tailor the consultation to the needs of each group and facilitate its participation.

• 1. Online questionnaires to increase outreach.
• 1. Focus groups involving a group of participants in a discussion focused on a set of issues. The objective is to delve into certain concerns that may be identified in relation to the 21 sustainability topics under study.
• 1. Interviews with key stakeholders, where more individual interactions are maintained with the objective of collecting first-hand knowledge, information, and perspectives, which allow us to delve more deeply into different sustainability topics.

Phase 2. Evaluation of impact materiality and financial materiality

Stakeholder opinions collected through the questionnaires were used to assess impact materiality, together with those received through the interviews and focus groups.

The results of the responses received to the questionnaire, which is the main listening channel, quantitatively speaking, are as follows:

Stakeholders	No. of answers	As %
Employees	7,230	35.87 %
Customers	5,550	27.53 %
Providers	2,578	12.79 %
Distributors and collaborators	4,741	23.52 %
Society	39	0.19 %
Financial community	17	0.08 %
Bodies and institutions	3	0.01 %
Total	20,158	100 %

After collating the opinions, the severity of each topic was determined, taking the following factors into account:

• Its relevance based on the stakeholders' opinions.
• The geographical scope of its impact, whether positive or negative, as evaluated through an internal analysis.
• The ability to remedy it, in the case of negative impacts.
• The probability of occurrence, for potential impacts.

Adding all these criteria together, an impact materiality score was obtained for each of the 21 sustainability matters.

Three sources were used to evaluate financial materiality: the company's risk map, the opportunity analysis included in the TCFD report, and the expert criteria of Corporate Sustainability. These sources, compared with the assessment and perspective of the executives on the Operating Sustainability Committee, allowed the severity of the positive and negative impacts of each

sustainability matter to be estimated in the short, medium, and long term. This evaluation resulted in a financial materiality score for each of the 21 sustainability matters.

Phase 3. Reporting of results

Below is the 2023 MAPFRE Group double materiality matrix, based on the consolidation of results from the previous phases, showing the material and non-material topics:

As can be seen, the following seven material themes have been identified:

• 1. Adaptation of the business to climate change
• 1. Innovation and digitalization
• 1. Cybersecurity and privacy
• 1. Management of talent
• 1. Customer protection
• 1. Sustainable investments
• 1. Sustainable products and services

Changes in relation to the 2022 materiality matrix

The most notable changes are seen in the prioritization of certain topics such as, for example, Good governance and compliance and Orientation and customer satisfaction. These changes are mainly due to the new methodology used that has incorporated the financial materiality axis and new parameters in the evaluation of impact materiality such as scope, the ability to remedy negative impacts and probability.

For more information, please see 8.2. Notes on additional information / Note 2. Material issues, page 194

Phase 4. Integration and linking of results

The accompanying table shows the link between material topics and the Group's strategy, as well as with the Sustainability Plan.

Topic	Connection with elements of the group's strategy	Connection with the Sustainability Plan 2022– 2024	Location in this report
Adaptation of the business to climate change	Transformation + Growth and Profitability	Sustainable underwriting + Sustainable investment	3.2. Risk identification 3.4. Risks and opportunities arising from climate change 6.1. Action strategy against climate change 6.2. Our Environmental Footprint Plan
Innovation and digitalization	Transformation + Efficiency and Productivity + Growth and Profitability	Sustainable products and services + Circular Economy + Inclusion	3.2. Risk identification 5.5. Innovation and digitalization in products and services and processes
Cyber security and privacy	Efficiency and Productivity + Transformation	Transparency	3.2. Risk identification 7.3. We promote cybersecurity and protect data privacy
Talent management	Transformation + Efficiency and Productivity + Growth and Profitability	Employment + Inclusion	3.2. Risk identification 5.1. Developing our people
Customer protection	Transformation	Insurance accessibility + Sustainable products and services + Sustainable underwriting + Sustainable investment	3.2. Risk identification 5.3. We protect our clients 5.5. Innovation and digitalization in products and services and processes
Sustainable investments	Transformation + Growth and Profitability	Sustainable investment	3.2. Risk identification 4.5. Our business and sustainability
Sustainable products and services	Transformation + Growth and Profitability	Sustainable products and services + Sustainable underwriting + Sustainable investment	3.2. Risk identification 4.5. Our business and sustainability

4.3. Sustainability strategy

With each passing year, sustainability takes on more importance in our world. What was seen 20 years ago as merely an academic and voluntary exercise is today a key driver of organizational success and a generator of a solid connection with stakeholders.

In its early days, sustainability was limited to the environmental aspect, but global events have demanded increasing attention on the social side. The societies we live in need our collaboration as much as, if not more than, the planet does if they are to be saved and move forward.

Everyone needs to participate in this process and that's why MAPFRE promotes its sustainability efforts under the slogan #PlayingOurPart. Our business is made up of people who attend to people and the social aspect of sustainability permeates every area of our organization.

4.3.1. Strategic sustainability for MAPFRE

A successful sustainability process starts with the commitment of senior management and is integrated into the Company's strategic vision and becomes a determining factor in the Company's purpose. At MAPFRE, integrating sustainability into strategy, business and processes is a continuous and dynamic system that responds to the different risk trends in the current environment.

We firmly believe that change is possible. We want to be part of this transformation and build a fairer, more diverse and inclusive society that ensures equal opportunity for all. We have adopted firm and demanding commitments that we aim to leverage so as to generate a positive social and environmental impact through our natural role as insurers, investors and asset managers. With our global knowledge, experience and presence, we aim to be an engine of sustainable growth for society.

Faced with these global challenges, the response can only be collective. That's why we work in collaboration with government bodies, multilateral organizations and non-governmental organizations to develop products and services that cover the risks we face and allow us to make the most of the opportunities offered by this developing world.

The Sustainability Plan for the years 2022-2024, approved by the Board of Directors, has been defined taking into account the Group's strategy, trends in sustainability, the study of material aspects for MAPFRE and its stakeholders, the 2030 Agenda and new ESG regulations.

This strategy is organized around four axes and twelve lines of action with objectives that aim to generate opportunities for the business, prevent negative impacts and promote positive impacts on the economy, the environment and society.

LINES OF ACTION

E Environmental	Environmental footprint management		Circular economy
S Social	Employment Inclusion	Financial education	Insurance accessibility	Management value chain
G Governance	Transparency			SDG and social footprint
B Business	Sustainable products	Sustainable investment		Sustainable underwriting

4.3.2. Key advances in objectives of the Sustainability Plan 2022-2024

During 2023, the second year of the sustainability plan, all countries, business units and corporate

areas made progress in achieving the objectives set down, giving new impetus to the projects and actions defined in the 12 lines of the plan.

• The main countries in which MAPFRE operates (which represent 74.25% of written premiums) will be carbon neutral by 2024, and the other countries will follow suit by 2030. → We have reduced the operational footprint of these countries by 30% against the 2019 baseline and neutralized the footprints for Spain and Portugal.
• By 2024, people with disabilities will comprise at least 3.5% of MAPFRE's workforce worldwide. → The percentage of people with disabilities in the workforce at the close of 2023 stood at 3.9%.
• By 2024, the gender pay gap will be +/-1% globally. → The average adjusted pay gap for 2023 stood at 0.9%.
• 100% of MAPFRE providers in the Homeowners, Automobile, Health and Procurement network are to be approved in line with ESG criteria in the main countries. → In 2023, 9,728 providers were approved in Germany, Brazil, Spain, Mexico, Peru and Puerto Rico, representing 72% of the target providers.
• 90% of the global investment portfolio to be rated in line with ESG criteria by 2024. → 96.6% of the investment portfolios of MAPFRE Asset Management, the United States and Brazil was duly rated as per ESG criteria.

4.3.3. Main achievements of the sustainability plan in 2023

In 2023 we made further progress on the four axes of the strategy, with improvements delivered in reducing energy consumption, recycling batteries, employability and awareness-raising, among others.

Environmental axis

Environmental footprint management line In 2023, progress was made in the Environmental Footprint Plan 2021-2030 through:

• Reduction in energy consumption
• Installation of solar panels
• Acquisition of renewable energy
• Mobile working
• Use of electric or hybrid vehicles
• Reduction in business travel
• Reduction in paper and water consumption

Progress was also made in aligning MAPFRE's corporate emissions reduction objectives with the science. An analysis was conducted to expand the reporting of Scope 3 categories in line with the GHG protocol. Details of the actions carried out with regard to MAPFRE's environmental footprint management can be found in this report 6. Committed to the environment, page 151 and in the MAPFRE Group's TCFD Report / 6 Metrics and objectives on the Company's website www.mapfre.com/ en

Circular economy line

• Second Life: This project recovers, reuses and recycles the batteries of damaged electric vehicles. It has evolved positively with the adaptation of the battery pack used to render assistance with drained

electric vehicle batteries. Further, the effectiveness of converting batteries into energy accumulators has also been demonstrated with their implementation in the CESVIrecambios center in Vicolozano (Ávila, Spain), having saved 75,260.51 kWh in 2023, 12.58 tons of CO2eq.

• BATRAW 2022-2026: CESVIMAP participates in this European research project to automate the maximum utilization of critical minerals from batteries in poor condition or which are at the end of their useful life.
• Yo Reparo (I repair): This project revolves around training providers in sustainable repair techniques and methods. In 2023, between Spain, Brazil and the USA, 491 appraisers, 2,160 tow truck drivers and 1,540 workshops were trained in this methodology.
• Zero Waste Certification: MAPFRE renewed this certification in the Company's headquarters complex at Majadahonda, while the Corporate University at the Monte del Pilar campus was certified for the first time in 2023, after treating 98.95% of the 380 tons of waste generated. The zero waste model was also implemented in MAPFRE's headquarters building in Mexico.

Social axis

Employment line

Over the course of 2023, we boosted internal and external employability through promoting the implementation of development and capacity transformation plans which, in 2023, enabled 71.2% of people to be promoted and generate an employee satisfaction score of 70% (Employee Satisfaction Index). More details of the action taken in this area can be found in 5.1 Developing our people, page 90.

Inclusion line

Employment of people with disabilities was once again encouraged, to the extent that people with a disability now make up 3.9% of the workforce worldwide. As far as gender equality goes, the gender pay gap reduction plan is progressing satisfactorily in its bid to achieve pay equity and reduce the gender-adjusted pay gap to +/-1% by the end of 2024.

From a client perspective, progress was made in Spain developing products and services aimed at the senior collective to enhance their quality of life, impacting some 387,585 people through commercial actions, delivering 82% growth in new production premiums in this group in 2023. In Brazil, the MAPFRE Senior project, Redefining the value of the residential line for the over 60s, was rolled out and was subsequently recognized by the Brazilian Confederation of Insurance Companies.

We created content to promote financial and insurance education and culture across different stakeholder groups, which was distributed via social networks, the corporate website and the Economics Café and La Bolsa de Deporte podcasts, among other channels.

A global Financial Well-Being program for employees was launched that attracted 3,498 participants up to the end of the year. Workshops and sessions were also held during MAPFRE Sustainability Week, a global event held in all countries, and a number of rapid learning resources and articles were made available on the Intranet and the People app, which were seen by 2,605 employees.

Insurance accessibility line

MAPFRE develops products and services that promote access to insurance in lower-income segments of the population. The MAPFRE na Favela (MAPFRE in the favela) pilot project, carried out in Brazil in collaboration with the Gerando Falcões not-for-profit, is an example of this. This is a social development ecosystem that operates in the peripheries and favelas of Brazil, and for which three insurance products were created that feature customized services and solutions that meet the demands of residents and small businesses in these communities.

They are aimed at low-income groups and adapted to their needs, both in how they are distributed and in the coverage and services offered. This project facilitates MAPFRE in reinforcing its culture of protection and financial planning, putting into practice another vector of sustainability as a company

that thinks about tomorrow and designs strategies to serve and ensure the inclusion of all target audiences in its sector.

Value chain management line

Over the course of 2023, the internal methodology for evaluating providers in line with ESG criteria was reviewed and updated. The new approval process for business and support providers was launched in Germany, Spain, Brazil, Peru, Puerto Rico and the United States. For more information, please see chapter 5.2.3 Sustainable provider management.

For more information, please see 5.2.3. Sustainable provider management, page 121

Transparency axis

Transparency line

MAPFRE has drawn up an awareness-raising plan with internal and external actions related to topics such as inclusion, sustainable mobility, climate change, the social impact of insurance, sustainable business and digitalization, through which it can properly convey the commitments and actions being executed related to sustainability strategy 2022-2024 to its main stakeholders. With these actions, we drive change toward a sustainable future.

An online course, #PlayingOurPart, directed at all employees around the world, was also launched, which breaks down MAPFRE's sustainability plan, explains the ESG concepts, and details the different actions that the Company is carrying out in these areas. In 2023, 3,317 employees completed the course.

To reinforce transparency, this year the procedures related to and access to the whistleblower channels were reviewed and updated, and an ethical digital governance framework was also established. For more information, please see the corporate website: https://app.mapfre.com/ buzones/canaldenuncias/inicio/en.html

Sustainable Development Goals (SDG) and social footprint line

In 2023, a methodology to measure the impact of MAPFRE's actions on the SDGs in the area of people management was developed, published and implemented.

Business axis

MAPFRE is aware of its role as an investor and insurer in mobilizing economic resources that foster a more equal and sustainable world, and aims to develop insurance and financial solutions, services and products that respond to social, environmental and corporate governance risks and opportunities.

For more information, please see 3.3. ESG risks and opportunities, page 52 and 4.5 Our business and sustainability, page 75.

To further assist in boosting our investment teams's knowledge of sustainability issues, at the close of 2023, a total of 83 MAPFRE professionals (representing 50% of the investment area) had qualified as Certified ESG Analysts (CESGA) and 533 financial advisers (98% of the total) had been certified in ESG Essentials.

4.4. Sustainability governance

MAPFRE's Sustainability Policy establishes the reference framework so that any Group company can develop and promote socially responsible and sustainable behavior that includes MAPFRE's principles and commitments in ESG matters, as well as its strategy related to stakeholders. The effective application of this policy and the monitoring and control of compliance with it are overseen by the Group's Risk and Sustainability Committee, the body in charge of supporting and advising the Board of Directors.

• The Board of Directors of MAPFRE is the body responsible for approving the Corporate Sustainability Policy and the Group's sustainability strategy, in addition to monitoring the development of and compliance with the Sustainability Plan, for which purposes it is periodically informed of the progress made and the level of achievement of the Group's commitments included in said Plan. The Board of Directors discussed relevant issues regarding sustainability on five occasions during 2023, with climate change featuring among the topics discussed.
• The Risk and Sustainability Committee oversees the Group's sustainability strategy and policy, ensures its application and compliance with it, and monitors incidents, risks, and opportunities related to ESG aspects. This committee met six times in 2023, addressing the different issues related to these matters.

For more information, please see 2.1. Governance structure, page 35 and 2.2. Diversity and experience, page 38.

• The Sustainability Operating Committee is a top-level executive body whose members are appointed by the Executive Committee. Its functions include proposing the sustainability strategy to the Risk and Sustainability Committee, driving the progress of the sustainability plan, and addressing issues relevant to the Group in this area, such as monitoring the risks and opportunities associated with sustainability. This committee met five times to supervise each of the projects in the Sustainability Plan 2022–2024, establish new objectives, identify trends, opportunities, and regulatory requirements related to sustainability, and establish action plans to meet them.
• Corporate Sustainability is responsible for supervising and supporting the implementation of the plan, for designing the sustainability plan, and for monitoring new regulations and their impact on the Company. It also participates in internal committees and external forums to develop issues related to sustainability.

Sustainability governance model

4.5. Our business and sustainability

In order to achieve the global objectives set down in the 2030 Agenda, each company must tackle and take ownership of shared challenges, integrating them into their business. At MAPFRE, we make demanding and unequivocal public commitments on social and environmental matters, developing products and services aligned with them, and we commit ourselves to socially responsible investing and sustainable underwriting.

MAPFRE's business model and strategy are an example of how the company tackles global sustainability challenges, manages ESG risks and opportunities, and innovates in the development of insurance products and solutions that benefit customers and the communities we operate in.

ESG risks are naturally integrated into our business processes, providing long-term solutions. ESG risk and opportunity management helps in decision-making in areas such as underwriting, investment, innovation in products and services, and provision of services, all key to consolidating trust with stakeholders.

4.5.1. Integration of ESG aspects into MAPFRE's investment processes

4.5.1.1. Governance and strategy

In relation to investment processes, since 2017, MAPFRE has adhered to the UN Principles for Responsible Investment (PRI) and has a global framework in place for action pertaining to responsible investment, updated in 2023, which is conditioned by the PRI. The Responsible Investment framework is available for inspection at the following link: https://www.mapfre.com/media/Marco-de-Inversion-Responsable-2023-US.pdf

The United Nations PRI, which aim to reflect the growing relevance of ESG issues in investment processes, coexist with the obligation assumed by the company as a custodian of client savings and investments and ensuring the strength of its own balance sheet. Prudent investment criteria are therefore applied, seeking long-term value creation and incorporating ESG factors alongside traditional information.

MAPFRE has an Investment Policy in place that was approved by the MAPFRE S.A. Board of Directors, applicable to all insurance and reinsurance companies, and which features a series of policies that complement this commitment to sustainable investment:

• Policy on the Exercising of Voting Rights.
• Policy on the Integration of Sustainability Risks.
• Engagement Policy.
• PIAS due diligence (Statement on Due Diligence policies in relation to Main Adverse Incidents).

The Corporate Investment Area acts as the guarantor of compliance with the established responsible investment principles at the organization, and must report annually on fulfillment of same to the Sustainability Committee. The Risk Committees of the different management centers regularly analyze the composition of managed portfolios, their ESG evaluations, and any disputes that may arise from the application of the exclusion causes approved by MAPFRE, as well as the carbon footprint of the investment portfolio.

Environmental and human rights commitments in investment

The Company maintains its environmental commitments in the investment business, playing our part to further the transition to a low-carbon economy and thus reinforcing our commitment to being a zero-emission company by 2050. These commitments were approved by the Board of Directors in 2019. Para más detalle sobre los compromisos del grupo MAPFRE en inversión: https:// www.mapfre.com/media/COMPROMISOS-AMBIENTALESINVERSION-Y-SUSCRIPCION.pdf

In 2023, the company fully complied with the environmental commitments previously established in 2019 and updated in 2022.

4.5.1.2. ESG risk and opportunity management

In order to properly monitor and manage ESG risks in investments, MAPFRE has its own analysis framework in place that is reviewed periodically to incorporate best practices in this area. The investment team at each Management Center is responsible for implementing the methodologies included in the framework as they seek out opportunities and minimize risks.

With regard to sustainability strategies, MAPFRE is in favor of transversally applying an approach of integration and a policy of long-term shareholder involvement through the exercise of voting rights, which applies to all the assets it manages.

As defined in the Responsible Investment Framework and in the MAPFRE AM Integration Policy, ESG criteria are integrated into all investment processes, both in own and third-party portfolios. This is done considering the aspects defined by applicable regulations and market trends, among other things, along with the transversal approach applied to all products managed by MAPFRE AM, based on a dual focus: (1) Best in class with a minimum rating and (2) an exclusion policy aligned with the environmental and social commitments assumed by the MAPFRE Group.

However, MAPFRE AM applies specific approaches per product if they have specific sustainability criteria, as is the case with the two funds that fall under Article 8 of the Sustainable Finance Disclosure Regulation (SFDR), the MAPFRE AM Inclusión Responsable and MAPFRE AM Capital Responsable funds.

Exclusion criteria focused mainly on environmental issues and human rights, which promote the achievement of the aforementioned objectives, are also incorporated into investment decision-making and sustainability risk management.

Furthermore, progress is being made in establishing dialog processes with companies as a mechanism to influence their performance in terms of sustainability. To this end, a working group has been created at MAPFRE AM where a procedure has been established and work is being done on defining specific lines of action.

MAPFRE AM exercises its fiduciary duties responsibly, including the exercising of voting rights on all securities in its portfolios, which is the main instrument through which it engages with companies. The manner in which it votes is decided in accordance with the voting policy and guidelines defined by the management company. Participation in Annual General Meetings through voting is carried out in a manner that is consistent with the investment policy and objectives, as well as with the general principles of transparency and good governance, after analyzing the Board's proposals on the agenda and any other proposals submitted by other shareholders.

For this purpose, all publicly available information is availed of. In addition, when analyzing the most important securities in the portfolios and collective investment institutions, the recommendations of a voting advisor are taken into account.

MAPFRE AM pays special attention to the agenda item on non-financial reporting and diversity, where companies explain their performance on environmental, social, workforce, provider, and community matters, as well as other stakeholder matters.

For resolutions related to social and environmental aspects, an internal analysis is conducted so as to act in line with MAPFRE AM's sustainable and responsible investment policies and to protect the interest of shareholders/customers. MAPFRE AM pays close attention to voting on resolutions related to social and environmental aspects in products that are managed under sustainability criteria.

As far as voting goes, MAPFRE AM aims to influence a company's governance and help promote greater transparency and better performance in terms of sustainability. With regard to dialog, the objective is to open direct lines of communication, individually or collectively, with companies, which allows it to to contribute to better sustainability performance.

During fiscal 2023, the Voting Report and the MAPFRE AM Engagement Activity Report were published within the legal timeframes stipulated. In addition, and given the characteristics of the MAPFRE Inclusión Responsable and MAPFRE AM Capital Responsable funds, a specific engagement report for both funds was prepared and published.

• MAPFRE AM Report on Exercise of the Voting Policy 2022 https://www.mapfream.com/media/EN\_Annual\_Report\_Voting\_Rights\_122022.pdf
• MAPFRE AM 2022 Engagement Activity Report https://www.mapfream.com/media/EN\_MAPFRE-AM\_Engagement\_activity\_Report\_2022.pdf
• MAPFRE AM Capital Responsable 2022 Engagement Report https://www.mapfre.es/ahorro-inversion/inversion/mapfre-am-capital-responsable-fund/
• MAPFRE AM Inclusión Responsable 2022 Engagement Report https://www.mapfre.es/ahorro-inversion/inversion/mapfre-am-inclusion-responsable-fund/

Likewise, MAPFRE AM extends the philosophy of socially responsible investment to the Group's entire balance sheet.

Real estate investment is fully aligned with these principles and the governance system described above. Additionally, specific strategies have been defined to ensure compliance with the objectives set down, within the framework of the Sustainability Plan and the Corporate Environmental Footprint Plan 2021-2030 (the latter develops specific aspects of the former).

For more information, please see 6. Committed to the environment, page 151.

4.5.1.3. Metrics and objectives

Applying the commitments of the Sustainability Risk Integration Policy, as at fiscal year-end, 96% of the investment portfolio managed by MAPFRE AM was analyzed in line with ESG parameters, corresponding to an investment of more than 33.94 billion euros. Of the total portfolio, more than 96% of the assets have an ESG rating, of which 91% have a high rating, above the minimum required threshold established by the company.

In 2023, in fulfillment of the commitments established in the Sustainability Plan 2022–2024, portfolios in Brazil and the United States were analyzed, corresponding to an investment of more than 39.14 billion euros. Of this total volume, 96.6% have an ESG rating, with 82.5% above the minimum required threshold established by the Company.

With respect to actions related to MAPFRE's real estate investment, the sustainable building certification initiative is worth highlighting. During 2023, three new LEED certifications were obtained, meaning the Company now holds 16 such certifications globally. This initiative aims to certify at least 50% of the total floor area of standalone buildings owned by MAPFRE by 2030.

Measuring the carbon footprint of our investment portfolio

MAPFRE supports the transition toward a low-carbon and climate-friendly economy, in line with the Paris climate objectives. The company therefore wants to ensure that its activity and associated emissions help to reduce global warming.

Considering the environmental impact of its investments is an integral part of MAPFRE's strategy to reduce its carbon footprint in all of its activities and areas of influence, including those related to its asset portfolio.

As a sign of this commitment, we have carried out our first climate impact measurement on the MAPFRE AM investment portfolio in order to establish decarbonization objectives and guide our decision-making.

To calculate the carbon footprint of its investment portfolio, MAPFRE AM uses a proprietary methodology based on the Partnership for Carbon Accounting Financials (PCAF) methodology, measuring the emissions of the portfolio of equities, corporate debt, and government fixed income. In this way, the company identifies the risks and opportunities that its investments may entail in relation to the sustainable development of the business. For more information on the methodology used to calculate the carbon footprint of the investment portfolio, please seehttps://www.mapfream.com/en/

MAPFRE AM	2023	2022	2021	2019 (baseline)
Total carbon footprint (tCO2e)	3,671,197.86	3,354,390.96	4,266,833.45	5,434,315.95
Carbon footprint per €m invested (tCO2e/€million)	137.67	138.71	153.47	211.54

In 2023, due to the company's commitment to becoming a net-zero company by 2050, within the framework of the Net-Zero Asset Owner Alliance (NZAOA), the scope of the carbon footprint of the investment portfolio (equity and corporate debt and government fixed income) was expanded. Along with the greenhouse gas emissions from the MAPFRE AM portfolio reported previously, portfolio emissions from the other management centers included in the Group's balance sheet are added.

The calculation methodology used to calculate the emissions from the asset portfolio has also been reviewed. The new calculation methodology for the Carbon Footprint used by MAPFRE is based on that developed by Partnership for Carbon Accounting Financials (PCAF). The modifications made to the calculations reported in the previous year involved:

• (1) the incorporation of financial companies;
• (2) the modification of the attribution factor for the sovereign aspect, in line with the PCAF update;
• (3) the incorporation of third-party management funds, and
• (4) the transparency of structured products.

As such, the only assets that will not be taken into account under the methodology are derivatives.

This has lead to an increase in the scope of covered assets from 68% to 85% in the calculation of the Group's carbon footprint.

MAPFRE Group	2023	2022 (baseline)
Total carbon footprint (tCO2e)	4,113,456.43	4,127,326.63
Equities + Corporate fixed income (tCO2e)	775,663.29	902,048.74
Fixed income (Sovereign + Supra + Agencies) (tCO2e)	2629508.89	2441555.61
Other (tCO2e/€million)	708284.25	783722.28
Carbon footprint per €m invested (tCO2e/€million)	103.13	113.97
Equities + Corporate fixed income (tCO2e/€million)	65.71	81.53
Fixed income (Sovereign + Supra + Agencies) (tCO2e/€million)	114.91	122.3
Other (tCO2e/€million)	157.66	219.51

In line with its commitment to the United Nations 2030 Agenda, in 2023 MAPFRE once again measured the impact of the balance sheet portfolios on the Sustainable Development Goals, using the methodology developed in 2019 with the University of Siena. Work continues to expand the methodology and integrate it with the other tools used in investing under ESG criteria.

The Sustainability Plan 2022–2024 established the following objectives:

• Rating of 90% of the investment portfolio in line with ESG criteria globally by 2024. At the end of 2023, more than 96% of portfolios had been rated as per ESG criteria.
• A reduction in emissions from the MAPFRE AM investment portfolio of 10% by the end of 2024 (2019 baseline over the relative indicator: tCO2e/€ million). As at the end of 2023, the reduction in GHG emissions in MAPFRE AM's investment portfolio was 35%.

In addition, as part of our commitment to becoming a net zero company in 2050, MAPFRE joined the Net-Zero Asset Owner Alliance, defining intermediate objectives to align our portfolios with the 1.5⁰ C scenario¹⁰ .

• To reduce the greenhouse gas emissions intensity (Scope 1 and 2) of the Group's investment portfolio (corporate fixed income and equity) by 43% by 2030, using 2022 as a baseline.
• To increase investment in solutions that favor the transition to a low-carbon economy.
• To establish active dialog with at least 20 companies with the highest greenhouse gas emissions

4.5.1.4. Sustainable investment products

MAPFRE is committed to developing a range of sustainable products that complement existing products.

MAPFRE AM, MAPFRE's asset manager, has two sustainable funds on the market, both of which carry the SRI label promoted by the French Ministry of Finance, and which are categorized as Article 8 funds under the new European SFDR. They also take into account Main Adverse Incidents.

For more information, please see 8.2. Notes on additional information / Note 3. Sustainable products, page 198.

Specifically, the MAPFRE AM Inclusión Responsable fund, which is classified as a Socially Responsible Investment, invests in European equity markets. The fund uses a novel methodology that seeks to identify financially profitable companies that are also committed to integrating people with disabilities into the labor market. The fund's ultimate purpose is to make a positive impact on this community's social integration, while also generating high profitability within a long-term time frame. The MAPFRE AM Capital Responsable fund benefits from high returns produced on the equity market assuming a low risk profile. The fund invests in assets that meet the ESG criteria for Socially Responsible

¹⁰ These new intermediate objectives defined within the framework of the NZAOA will replace the objective previously defined in the Sustainability Plan 2022-2024, namely the reduction of emissions from MAPFRE AM's investment portfolio by 10% by the end of 2024 (baseline 2019 on the relative indicator: tCO2e/€million), which is concluded.

Investment, aiming to contribute to the growth and sustainable development of our society while generating attractive returns.

In addition, as a sign of this commitment, the Company has other sustainable investment products available, such as the infrastructure fund launched with Abante or investments in renewable energy made in partnership with Iberdrola.

In 2023, MAPFRE launched the first biomethane mutual fund in Europe (MAPFRE Energías Renovables II), with the objective of investing in the construction and development of between 20 and 25 production biomethane plants in Spain in five years. This fund is the first MAPFRE fund to be classified as Article 9 according to the recent Sustainable Finance Disclosure Regulation (SFDR).

For more information, please see 8.2. Notes on additional information / Note 3. Sustainable products, page 198 and MAPFRE Group TCFD report:

MAPFRE has placed special emphasis on providing communication and information on sustainable funds to (current and potential) specialist clients and society in a different way, in line with the values that these funds, responsible investment and its contribution to sustainable development represent to the Company. Specific informational content is generated through interviews, participation in conferences and events, reference articles in specialist media and value-added videos on the MAPFRE corporate website (www.mapfre.com/en) and in the MAPFRE AM website (https:// www.mapfream.com/en).

In addition, since 2019, MAPFRE has been part of Spainsif (a benchmark meeting platform for sustainable and responsible investment in Spain) and is also a member of its management board.

4.5.1.5. Asset alignment according to the EU Taxonomy

The EU taxonomy for sustainable activities is a classification system that establishes a list of economic activities that are environmentally sustainable, including in relation to adaptation to climate change. In accordance with the European Taxonomy Regulation 2020/852, concerning the establishment of a framework to facilitate the classification of sustainable investments, Insurance and Reinsurance companies shall inform the market of eligibility and alignment indicators linked to their Investments/Assets on balance sheet.

An economic activity is deemed environmentally sustainable when it is included in the corresponding sectors of activity and meets three requirements: (1) it makes a substantial contribution to at least one of the six environmental objectives identified by the regulations (climate change mitigation, climate change adaptation, sustainable use and protection of water and marine resources, transition toward a circular economy, pollution prevention and control, and protection and restoration of biodiversity and ecosystems); (2) it does not cause harm to any of the other objectives (DNSH (Do No Significant Harm) principle); and (3) it complies with minimum social safeguards.

Regulatory Context

Delegated Regulation (EU) 2021/2178 details the considerations, as well as the typology of assets to be considered in the calculation of KPIs, of the EU taxonomy.

In accordance with Article 7 of Delegated Regulation (EU) 2021/2178, the following clarifications are made in relation to the perimeter of assets to be considered in KPIs:

• a. Exposures to central administrations, central banks, and supranational issuers will be excluded from the calculation of the numerator and denominator of KPIs of financial companies.
• b. Derivatives will be excluded from the numerator of key performance indicators of financial companies
• c. Exposures of companies that are not required to publish non-financial information in accordance

with Article 19a or 29a of Directive 2013/34/EU (Non-Financial Reporting Directive (NFRD)) will be excluded from the numerator of KPIs of financial companies.

Based on the type of assets on the balance sheet of the MAPFRE Group, whose significant activity is insurance and reinsurance, we have marked those impacting on:

• i. Denominator: assets to be considered within the perimeter of the taxonomy's indicator for covered assets.
• ii.Numerator: assets to be considered and analyzed in order to understand whether or not they are aligned with the taxonomy.

Quantitative information

In order to comply with the provisions of Delegated Regulation (EU) 2021/2178 and amendments thereto (published in June and November 2023), the main results reported in relation to the EU taxonomy of quantitative tables are:

• i. Non-eligible assets (amounting to €18,343,060,623.76 and representing 74.74% in relation to covered assets)
• ii. Eligible but not aligned assets (amounting to €2,749,465,885.67 and representing 11.20% in relation to covered assets)
• iii. Aligned assets (amounting to €3,450,723,490.57 and representing 14.06% in relation to covered assets)

The sum of these three indicators results in the total assets covered.

The KPIs of investment activities/assets and the tables of information to be reported to the market are detailed in 8.2. Notes on additional information / Note 4. Alignment of the Taxonomy as per the EU, page 199.

Qualitative information

In accordance with Annex XI of Delegated Regulation (EU) 2021/2178, in addition to the reporting of quantitative data, a qualitative explanation of the information is detailed in 8.2. Notes on additional information / Note 4. Alignment of the Taxonomy as per the EU, page 199, to support the understanding of the results: in it, it details contextual supporting information for the quantitative indicators, including the scope of assets and activities covered by the indicators; information on data sources and their limitations; an explanation of the nature and objectives of taxonomy-aligned economic activities and their evolution over time; a description of compliance with the Taxonomy Regulation in the company's business strategy, product design processes, and engagement with clients and counterparties; additional or complementary information to support the company's strategies and the weight of the financing of taxonomy-aligned economic activities in its overall activity.

4.5.2. Integration of ESG aspects into MAPFRE's underwriting processes

4.5.2.1. Governance and strategy

In 2012, MAPFRE signed up to and adopted the Principles for Sustainable Insurance (PSI) (https:// www.unepfi.org/psi/signatory-companies/) promoted by the United Nations Environment Programme Finance Initiative (UNEP FI), committing itself to integrating ESG issues into its decision-making for the underwriting processes of the Group's insurance operations.

This commitment is articulated in the Underwriting Policy, approved by the Board of Directors of MAPFRE S.A., applicable to all insurance and reinsurance companies, and aligned with the corporate business strategy. In addition to a Global Business Committee that meets monthly, MAPFRE has an

Underwriting Policy Committee in place that meets weekly and is, among other functions, responsible for the correct application of this policy and analyzes and proposes operational exclusion rules on ESG matters.

Environmental commitments in underwriting

The MAPFRE Group maintains its environmental commitments in the insurance and reinsurance underwriting business, playing our part to further the transition to a low-carbon economy and reinforcing our commitment to be a zero-emission company by 2050. These commitments have been approved by the Board of Directors.

In 2023, the company fulfilled its previous commitments regarding coal, oil and gas and has not approved any exceptions in this area. More details on the MAPFRE Group's environmental commitments in underwriting are available here: https://www.mapfre.com/media/ENVIRONMENTAL-COMMITMENTS-IN-INVESTMENT-AND-UNDERWRITING.pdf

4.5.2.2. Managing ESG risks and opportunities

MAPFRE constantly analyzes factors that could impact the business should they materialize. This analysis considers ESG factors, as these enable additional information to be gathered on social movements and transformations, as well as the expectations of stakeholders and the market that may affect the organization.

A proper analysis of ESG factors, and how they might affect the business in the short, medium and long term, shows their relationship to the company and possible inclusion in the list of risks drawn up by the company and related adoption of prevention and mitigation measures.

MAPFRE has developed an internal ESG evaluation model, which makes use of specialized tools that evaluate and quantify the ESG impact of the activity carried out by a business group, taking into account the sector and countries it operates in. This methodology has been implemented in the global risks business, in the business operations of Spain and Brazil, and in the facultative reinsurance business.

The model assigns a reputational risk level to the business group, which is linked to the level of authorization required to underwrite transactions, such that the approval of the Management Committee of each country or business unit may be required and, where appropriate, the additional authorization of the CEO. In this case, if the transaction is authorized, with the corresponding mitigation measures, the Group Sustainability Office is informed and a plan of mitigation measures for said risk may be required.

Natural disaster management

Acting appropriately in the face of natural disasters necessitates adequate forecasting of these events and a correct assessment of the losses they can suppose, both of which are essential aspects of managing an insurance company. The economic impact that the company will end up absorbing and the manner in which it can respond to its clients depend on this, and correctly managing this is a key aspect of its operational management.

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 of the companies individually and the Group as a whole.

MAPFRE's framework for catastrophic risk management includes several functions:

• Accumulation control: addressing all catastrophic exposures that the companies face and that may be affected by a natural disaster. In this area, the ExpoCat tool was implemented at corporate level in 2021 for the reporting and geo-referencing of MAPFRE companies' catastrophic exposures for their P&C portfolios, which are also mapped on various dashboards to enhance control and streamline information management. The data include characteristics of the exposed assets that

can make them more resilient to the impact of catastrophic risks, such as the year and type of construction or height.

• Catastrophic risk modeling: knowing all the information about exposures, estimating probabilistic loss scenarios to calculate the possible financial impact of natural disasters. Climate change can be an incremental factor in catastrophic risk depending on the type of scenario and the time horizon. As such, it should be included in these estimates to the extent that the predictive models used allow for this variable to be incorporated. The ExpoCat tool allows companies to formulate deterministic loss scenarios with precise maps in the event of a catastrophic event, identifying potentially affected exposures and allowing for more agile decision-making. The Board of Directors of MAPFRE S.A. establishes the risk level that the Group is prepared to assume in order to meet its business objectives without any significant deviations, even in adverse situations. This strategy enables MAPFRE to manage risk and adapt its financial planning process to climate change.
• Design of the appropriate reinsurance protections to cover the risks that MAPFRE does not wish to retain and to ensure that catastrophic events do not compromise the Group's solvency or liquidity.
• Supervision and management of the credit risk that the Group is exposed to through reinsurance placements, as well as the liquidity risk that it could be exposed to.
• Continuity plans: in the case of a catastrophic event, MAPFRE's ability to continue serving its clients is of paramount importance. The Company's business continuity plans are developed, implemented, tested, updated and certified, and are aimed at guaranteeing, in addition to the personal safety of employees and collaborators, the operational resilience of its companies; thus fulfilling its obligations to clients and other stakeholders.

To carry out these actions, MAPFRE has specific capabilities that allow for a consistent and adequate response to requirements at any time and in any location. 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 facilitates the provision of services required by clients, making these operations resilient.

To learn more about the economic impact caused by natural disasters, please consult the Consolidated Management Report 2023 / Relevant economic and corporate events on the Company's website

4.5.2.3. Metrics and objectives

Until 2023, the ESG analysis tool had served to offer scoring for global risks clients, clients from Spain and Brazil and facultative reinsurance clients.

In accordance with the ESG risk analysis model, at the end of 2023, 90% of the underwriting portfolios mentioned above have been analyzed under ESG criteria.

In 2022, MAPFRE set itself the objective of being a net-zero company in its insurance and reinsurance underwriting portfolios by 2050. This commitment has made MAPFRE even more demanding when it comes to sustainability, such that the company is working to establish, in the short term, underwriting criteria to make a significant impact in terms of emissions while defining decarbonization commitments with its most relevant clients, and promoting agreements and developing products and services that promote the reduction of greenhouse gas emissions in its portfolio.

4.5.2.4. Sustainable underwriting products and services

Sustainable innovation is an important business opportunity, which is why MAPFRE continues working to design sustainable solutions, analyzing market options and pivoting toward new business models and solutions that arise from digital and technological changes. It does so with the ultimate aim of offering the best solutions and services to current and future customers while contributing to the fair transition to a low-carbon economy and a more inclusive and equal society.

MAPFRE's experience as an insurance company enables it to manage risks and develop solutions for a sustainable future, adding value through dialog with stakeholders and sharing its experience to improve general awareness of risk and mitigation in the sector.

• a. Environmental products and services: insurance products or services aimed at specifically adapting and/or mitigating an environmental risk or opportunity and/or related to climate change.
  • i. Climate change mitigation
  • ii. Adaptation to climate change
  • iii. Transition to a circular economy
  • iv. Pollution prevention and control
  • v. Restoration of biodiversity and ecosystems
• b. Social products and services: insurance products or services aimed at specifically covering the basic needs of the population, products or services related to the protection of life, health and education in disadvantaged communities and/or low-income groups (those earning minimum wage or less), as well as aspects related to the protection of human rights, non-discrimination, inclusion and diversity.
  • i. Microinsurance
  • ii. Insurance for seniors
  • iii. Insurance for other vulnerable groups
• c. Good governance products and services: products that aim to protect businesses from one of the biggest vulnerabilities of today, namely cyberattacks.

Sustainable underwriting products and services	2023
	No. of policies insured	Written premiums
Environmental products and services	3,197,914	1,033,654,759.74
Social products and services	13,418	23,338,040.44
Good governance products and services	12,729,699	338,422,074.05
Total	15,941,031	1,395,414,874.22

For more information, please see 8.2 Notes on additional information / Note 3. Sustainable products, page 198

4.5.2.5. Premium alignment according to the EU Taxonomy

The EU Taxonomy for sustainable activities is a classification system that establishes a list of economic activities that are environmentally sustainable, including in relation to adaptation to climate change. In accordance with the European Taxonomy Regulation 2020/852, concerning the establishment of a framework to facilitate the classification of sustainable investments, Insurance and Reinsurance companies shall inform the market of eligibility and alignment indicators linked to their Non-Life Underwriting/Reinsurance business.

An economic activity is deemed environmentally sustainable when it is included in the corresponding sectors of activity and meets three requirements: (1) it makes a substantial contribution to at least one of the six environmental objectives identified by the regulations (climate change mitigation, climate change adaptation, sustainable use and protection of water and marine resources, transition to a circular economy, pollution prevention and control, and protection and restoration of biodiversity and ecosystems); (2) it does not cause harm to any of the other objectives (DNSH (Do No Significant Harm) principle); and (3) it complies with minimum social safeguards.

Regulatory Context

Delegated Regulation (EU) 2021/2139 defines the activities that contribute to mitigating and adapting to climate change. In addition, it establishes the technical selection criteria to determine the conditions under which a specific economic activity can be considered as substantially contributing to climate change mitigation or adaptation. Only the aspects related to insurance, specified in Article 10 of Annex II, Financial and Insurance Activities, will be applicable from this delegated regulation.

The lines of business considered in the study are those indicated in point 10.1. Non-Life insurance: underwriting of climate-related risks:

• Medical expense insurance
• Income protection insurance
• Workers' compensation insurance
• Third-party liability automobile insurance
• Other automobile insurance
• Marine, aviation, and transport insurance
• Fire and other damage to property insurance
• Assistance insurance

Quantitative information

In order to comply with the provisions of Delegated Regulation (EU) 2021/2178 and amendments thereto (published in June 2023), insurance companies must report the following indicators of their Non-Life underwriting and reinsurance activities:

		Proportion	Proportion	Climate	Water and			Biodiversity	Minimu
Economic activity	Total insurance revenue year t (2)	of of insurance insurance revenue, revenue, year t (3) year t-1(4)		change marine mitigatio resources n (5) (6)		Circular economy (7)	Pollutio n (8)	and ecosystems (9)	m coverage s (10)
	Euros	%	%	Y/N	Y/N	Y/N	Y/N	Y/N	Y/N
A.1. Non-Life insurance and reinsurance underwriting taxonomy-aligned activities (environmentally sustainable)	465,971,550.62	2.62 %	from fiscal year 2024	Y	Y	Y	Y	Y	Y
A.1.1. Of which reinsured	0.00	— %	from fiscal year 2024	Y	Y	Y	Y	Y	Y
A.1.2. Of which stemming from reinsurance activities	0.00	— %	from fiscal year 2024	Y	Y	Y	Y	Y	Y
A.1.2.1 Of which reinsured (retrocession)	0.00	— %	from fiscal year 2024	Y	Y	Y	Y	Y	Y
A.2 Non-Life insurance and reinsurance taxonomy-eligible but not environmentally sustainable activities (non-taxonomy-aligned activities)	836,821,828.48	4.705 %	from fiscal year 2024
B. Non-Life insurance and reinsurance taxonomy non-eligible activities	16,481,358,455.26	92.674 %	from fiscal year 2024
Total (A.1+A.2+B)	17,784,151,834.37	100 %	100 %

With regard to the scope defined for calculating the indicators, the MAPFRE Group has established, following a decision taken by the Sustainability Operating Committee, to report, as they are considered material in this area, the data corresponding to companies that represent more than 95% of the attributable result under the International Financial Reporting Standard adopted by the European Union (IFRS-EU 4) at the close of September 2023.

As such, the data reflected in the Taxonomy correspond to this previously defined scope, not taking into account 100% of the total Non-Life revenue of the MAPFRE Group reflected in the Group's consolidated annual accounts (26,897.08 million euros) published under IFRS-EU 17 on Insurance Contracts.

In the coming years, the scope for calculating the indicators will gradually be extended to cover 100% of MAPFRE Group revenue.

EU Regulation 2021/2178 details the indicators to be developed by insurance and reinsurance companies. To calculate these indicators, it was necessary to extract information from the insurance activity that differs from Life insurance and from the reinsurance activity.

Qualitative information

In accordance with Annex XI of Delegated Regulation (EU) 2021/2178, in addition to the reporting of quantitative data, a qualitative explanation of the information is detailed in Note 4. Alignment of the Taxonomy as per the EU, page 199 to support the understanding of the results: In it, it details contextual supporting information for the quantitative indicators, including the scope of assets and activities covered by the indicators; information on data sources and their limitations; an explanation of the nature and objectives of taxonomy-aligned economic activities and their evolution over time; a description of compliance with the Taxonomy Regulation in the company's business strategy, product design processes, and engagement with customers and counterparties; additional or complementary information to support the company's strategies and the weight of the financing of taxonomy-aligned economic activities in its overall activity.

Profitable growth cannot be understood only from a financial point of view. We are a committed company that also aspires to create and distribute value for all stakeholders.

MAPFRE's strategy with its various stakeholders revolves around developing long-term, trust-based relationships built on commitment and dialog that have their roots in integrity, responsibility and transparency, contributing to the sustainable value creation model that the Group pursues, acting in accordance with the provisions of the MAPFRE Code of Ethics and Conduct and the MAPFRE Sustainability Policy.

The following image shows MAPFRE's connections with its main stakeholders.

This chapter is dedicated to highlighting the most relevant aspects of the strategy and management with different stakeholders: employees, clients and policyholders, distributors, intermediaries and collaborators, providers and shareholders.

5.1. Developing our people

MAPFRE is a global company that is built and sustained by 30,873 people, day after day. All of them are at the heart of our people management strategy, the core pillars of which are development, promotion and well-being.

To fully realize their development, promotion and well-being, we work in line with: • Strategic business needs.

• Actively listening to our employees.
• A workplace of well-being, with an inclusive and diverse environment that allows people to express themselves freely.
• Developing capabilities through continuous learning, self-development, and mobility.
• Providing training in digital capabilities and new work methodologies.
• Promoting social sustainability through constant improvement in the quality of employment and employability.

With MAPFRE's commitment to people, our company is a place where the time each person invests is meaningful. Working with these values helps to further our transition to a more open, more digital, and more transformative company.

This dimension is complemented by the People and Organization 2023 report, verified and published on the corporate website https://www.mapfre.com/en/talent.

Total workforce	2023	2022
Workforce at December	30,873	31,293
Average workforce	30,920	32,187

44.6% 55.4%

Organizational distribution	Permanent				Temporary
		Full-time		Part-time		Full-time		Part-time		Total
	Men	Women	Men	Women	Men	Women	Men	Women	Men	Women
Corporate Areas / Central Services	793	625	0	3	5	8	0	0	798	636
IBERIA	4,539	4,945	88	383	96	124	13	44	4,736	5,496
BRAZIL	1,885	2,997	3	2	1	7	0	0	1,889	3,006
LATAM SOUTH CENTER	2,890	3,538	47	92	133	158	87	143	3,157	3,931
MEXICO	906	908	0	0	16	17	0	0	922	925
NORTH AMERICA	974	1,564	3	32	0	1	0	0	977	1,597
EMEA	943	941	31	230	68	78	16	28	1,058	1,277
REINSURANCE	226	234	0	3	1	4	0	0	227	241
TOTAL	13,156	15,752	172	745	320	397	116	215	13,764	17,109

Total number of employees per employment contract/work schedule/gender (as per the MAPFRE Group structure: Regional Areas, Business Units and Central Services)

Average number of employees per employment contract/work schedule/gender (as per the MAPFRE Group structure: Regional Areas, Business Units, and Central Services)

Organizational distribution	Permanent				Temporary
	Full-time		Part-time		Full-time		Part-time		Total
	Men	Women	Men	Women	Men	Women	Men	Women	Men	Women
Corporate Areas / Central Services	776	618	0	3	5	6	0	0	781	627
IBERIA	4,540	4,922	90	389	109	134	14	38	4,753	5,483
BRAZIL	1,880	3,052	4	2	3	6	3	0	1,890	3,060
LATAM SOUTH CENTER	2,889	3,546	53	106	129	137	58	106	3,129	3,895
MEXICO	929	902	0	0	13	16	0	0	942	918
NORTH AMERICA	983	1,600	3	34	0	2	0	0	986	1,636
EMEA	871	877	117	313	65	80	13	22	1,066	1,292
REINSURANCE	222	229	0	6	1	4	0	0	223	239
TOTAL	13,090	15,746	267	853	325	385	88	166	13,770	17,150

NUMBER OF EMPLOYEES BY JOB POSITION LEVEL AS OF DECEMBER 2023

5.1.1. Talent

Good talent management is key in any company. It reflects a true commitment to customers, employees, shareholders, providers, and society in general. At MAPFRE, we ensure that employees have the necessary knowledge and skills to guarantee the best service and products, in compliance with our standards of both quality and sustainability. And we don't just consider the current scenario, but also take a medium and long-term outlook.

The future employability of our professionals and the constant updating of their capabilities are of paramount importance. As such, we invest in development plans that provide them with this critical knowledge to better face the new challenges of an ever-changing environment. We have a promotion, mobility, and selection policy in place that is aimed at strengthening employees' commitment to MAPFRE's values and to developing people with global skills and capabilities, properly identifying and training current and future leaders. We believe it is vital to focus on future coverage both internally and externally. We have numerous initiatives in progress so that the countries we operate in can develop the skills we need within our professional ecosystem. This is demonstrated by our interns plan and our permanent, two-way, active connection with universities and business schools.

We have a Capability Transformation plan in place, the main objective of which is to identify and develop the necessary knowledge required by the business in the short and medium term, in addition to improving employability with development plans, career plans, training itineraries, upskilling and reskilling plans, and retention plans.

5.1.1.1. Development plans

MAPFRE has a global transformation model in place. The company has identified 60 job groupings based on their corresponding knowledge, which are broken down by the different technical and management career levels. Among them, 64 strategic profiles have been identified in 38 of these groups. In addition, each country annually defines job position coverage matrices and versatility matrices, which derive from global and local development plans, upskilling and reskilling plans, and external recruitment plans.

Specifically, given its critical role in the company's transformation, a targeted global project was carried out to transform the capabilities of the Technology, Operations, Data, and Security functions. Among them, 25 profiles were identified, and development plans were proposed for upskilling and reskilling to cover them, which will be executed in 2024

In 2023, 2,209 employees occupied strategic profiles in the organization, each with a personalized development plan. The unwanted staff turnover of these profiles in 2023 was 7%.

Development of Technical Function

As of 2023, we have a global technical function development plan in operation, with 13 international career managers and local plans in place in 31 countries, involving 4,315 employees from the technical function. This year, this group participated in the Global Training Program for Technical Managers, whose objectives were to expand MAPFRE's global vision, strengthen our culture, and further strengthen our technical knowledge.

To ensure coverage of this function's critical profiles in all countries, the needs of this function were updated this year, identifying 23 strategic profiles in the Health, Automobile, Life, and Business lines.

This year, the actuary trainee plan was developed further with the addition of 14 actuaries, who joined the 53 successful candidates from previous years.

MAPFRE has designed career plans for specific functions, such as underwriters, claims handlers, sales representatives, and internal auditors, among others. In 2023, 4,521 people participated in these plans.

The technical progression plan has been deployed globally, growing from 1,076 employees in technical career job positions (specialists, experts, management associates, and expert managers) to 1,856 in the last two years.

All countries have succession plans in place up to the third organizational level. These plans employ a common methodology that defines immediate, short-term and medium-term replacement, as well as the professional road maps in order to prepare potential successors.

In 2023, the internal vacancy coverage rate was 37.3%, with an aspirational target to be reached by the end of this strategic cycle of 45%. The internal promotion rate was 71.2%, and the total undesired turnover was 7.6%.

In 2023, 1,758 vacancies were published on the internal website, which were viewed by 1,002,368 people.

5.1.1.2. Self-development

MAPFRE offers employees a comprehensive training catalog to assist with their active development. In 2023, 11,379 employees accessed this catalog, and 85,974 signed up for training programs. The organization launched an automated learning recommendations engine in 2023 that uses algorithms to recommend courses to employees based on their interests and learning activity. Recommendations were made to 27,872 employees. In 2023, the number of self-learning hours increased by 39%.

This year, a feature that allows employees to evaluate their knowledge, also allowing their managers to evaluate them and give them feedback, was deployed to 6,942 employees in different countries (Mexico, Peru, Spain, Brazil, Chile, and Puerto Rico).

This feature has been made available to 28,072 employees from 38 countries in the Individual Development Plan so that both the employee, his or her supervisor, and the HR teams can include development actions (training, mentoring, project participation, among others) in order to set goals and facilitate their achievement.

5.1.1.3. Training and knowledge management

MAPFRE promotes employee learning through its Corporate University, and all training activities are designed in accordance with its business strategy and objectives. The Corporate University has 16 schools, 13 knowledge rooms, and an InnoLAB, and is present in all countries in which MAPFRE operates. In addition to mandatory content and knowledge for all employees (such as content related to legal requirements, occupational risk prevention, corporate policies and culture), technical content is developed to enhance employees' skills in their respective positions. Skills training is also promoted, with a special focus on leadership, languages and digital skills.

The following corporate development programs were held throughout 2023, with participants from all countries:

• 1. Global Development & Leadership Program (18 employees)
• 1. Global Women's Leadership Program (15 employees)
• 1. Executive Avanza Program (18 employees)

This year, training was given to 100% of the workforce through 984,622 training hours, representing an average of 31.84 training hours per employee.

	Hours of training
Job Position Level	Men	Women
Management and expert management	39,040	22,581
Middle management and experts	95,020	77,119
Advisors	218,505	250,320
Associates	91,756	190,281
TOTAL	444,321	540,301

• Technical and sales training represents 81% of the total training provided and is fully aligned with our business needs.
• The company invested 353.3 euros on average per employee.
• The company conducted 134 technical and transversal programs with a global scope.
• The company conducted 36 prevention programs and anti-harassment procedures and 5,950 enrollments were recorded for these programs by 5,082 employees.
• The company conducted 145 anti-corruption programs and 44,275 enrollments were recorded for this content by 18,255 employees.
• The rollout of The Firewall Mindset cybersecurity training, launched in 2021, continued in 2023, and a total of 19,322 employees worldwide had completed this content by the end of the year. In addition, the Global Cybersecurity Program, focused on MAPFRE's Technology and Security groups, was carried out, which consisted of a common, transversal module for everyone plus a specific module relating to the function performed by each employee in these groups. Sessions in the first module were attended by 1,593 people, and sessions in the second module were attended by 2,525 people.
• The company held 126 employee training programs on occupational health and safety (general training in this area and specific training on occupational risks and hazardous activities or situations) and saw a total of 11,948 enrollments by 7,485 employees for these programs.

The main training-related indicators are detailed in the accompanying table.

Training Indicators	2023	2022	2021
Investment in training	€10,907,192	€10,052,146	€8,120,763
Average investment per employee	€353.30	€327.34	€251.00
Total training hours	984,622	961,416	991,210
No. of training hours per employee	31.8	30.4	30
Total training attendances	374,635	309,648	384,095
% of workforce trained	100 %	100 %	100 %

Attendance at training activities by job position level and gender are broken down in the accompanying table.

	2023		2022		2021
Job Position Level	Men	Women	Men	Women	Men	Women
Management and expert management	13,148	6,944	8,399	4,227	11,173	5,713
Middle management and experts	38,068	30,671	25,036	21,209	29,995	23,248
Advisors	79,765	93,006	71,236	90,813	94,638	115,508
Associates	37,736	75,297	28,753	59,975	31,919	71,901
TOTAL	168,717	205,918	133,424	176,224	167,725	216,370

• To evaluate the transfer of knowledge to the job position worldwide in 2023, 2,135 questionnaires were completed by employee supervisors attending the programs, with 88% of responses indicating a rating of at least 4 out of 6 (high or very high level of transfer).
• A MAPFRE Culture online program has been deployed globally, with the main objective being to enable MAPFRE Group employees and collaborators around the world to understand and internalize MAPFRE's purpose. In 2023, 23,430 employees from all over the world were invited to complete this program.

In addition to the training described in this section, specific training on topics such as good governance, risks, and sustainability can be consulted in the following sections of this report: 3.1.3. Risk training, page 47; 4.3.3. Main achievements of the sustainability plan in 2023, page 70; 5.1.5.2. Disability, page 111; 7.2.2. Respect for human rights, page 176; 7.2.3.1. Preventing all forms of corruption, page 178; 7.3. We promote cybersecurity and protect data privacy, page 181; as well as, in Note 1. Training on material topics, from the People and Organization Report 2023 on the Company's website, and in the TCFD Report 2023 / 2.5. Employee climate change training programs www.mapfre.com/en.

5.1.1.4. Mentoring programs

Throughout 2023, the company continued implementing the traditional and digital mentoring program as a way of developing, collaborating and transmitting knowledge among teams. In traditional mentoring processes, the mentor transmits his/her knowledge, experience and culture to the mentee. There were 120 mentors and 145 mentees from 8 countries in 2023.

In digital mentoring, the mentor (digital profile) supports the mentee in developing digital skills and using technological tools, collaborative platforms and social networks, as well as in acquiring knowledge on digital trends. In 2023, the company had 80 digital mentors and 348 mentees from 4 countries.

5.1.1.5. Knowledge management

MAPFRE has a global knowledge management technology platform called Eureka, where all employees can connect to share knowledge and best practices It is an active platform that brings together knowledge of the entire organization in a single space. Currently, more than 4,000 pieces of knowledge have been contributed from the company's 15 areas of knowledge, and more than 1,380 employees worldwide have been identified as Knowledge Leaders, as they are the ones who mainly disseminate it.

5.1.1.6. Universities Plan

MAPFRE focuses on continuous and permanent collaboration with the world of education at global level through our Universities Plan: MAPFRE with Universities.

The organization has 473 agreements in place with universities, business schools, and academic institutions around the world, with the objective of disseminating the insurance culture, developing young talent, and sharing knowledge.

The plan works globally through three main pillars:

• Promoting knowledge of the insurance industry and the MAPFRE Culture. In 2023, 66 global sessions on insurance activity and its social impact were delivered.
• Developing young talent: MAPFRE actively participated in 126 job forums worldwide to publicize the employer brand and announce vacancies.

MAPFRE's Grow with Us Intern Plan aims to offer students the opportunity to acquire knowledge and skills at MAPFRE, to build their professional career, and to continue their personal and professional training. In 2023, over 900 students in 26 countries completed internships at MAPFRE.

• We share and add knowledge through a two-way relationship of collaboration, innovation, and knowledge transfer:

We provide universities and students with knowledge through sessions, webinars, master classes, and the MAPFRE Business Game.

MAPFRE executives and employees took part in 82 presentations and sessions.

5.1.1.7. Functional and geographic mobility

At MAPFRE, transfers and relocation are essential elements of employee development and employability. In 2023, 14.9% of employees were transferred, representing 4,183 employees.

There are different types of mobility, such as hierarchical mobility (between different hierarchical levels), functional mobility (between different functions), role, scope, and temporary mobility, as well as national and international geographical mobility.

As a result of geographic mobility in international careers, global mobility and temporary transfers, 67 employees were relocated, and 17 countries received professionals from 18 other countries. This has enriched strategic development, project implementation, and innovation.

Currently, 230 executives and employees work outside their country of origin.

5.1.1.8. Leadership

A Leadership Plan has been deployed worldwide to the organization's nearly 5,000 leaders, helping them to develop the six characteristics of the MAPFRE leader: digital leader, values leader, strategic leader, transparent leader, learning leader, and knowledge leader. It also aims to help them lead in a changing environment through new ways of working. To this end, the plan is deployed across four lines:

• External environment
• MAPFRE context
• Team development
• Leader's own development

One year after its launch, 94% of leaders have participated in the Leadership Plan, with 80% of them having completed the self-diagnosis and 90% of that group have now chosen their learning route.

Meanwhile,in order to improve the evaluation and development of leaders in 2023, a questionnaire was incorporated into the evaluation to assess 3 key factors of leaders: their strategic vision, ability to achieve results, and leadership of people.

With regard to training the company's top management, a specific program called Transformational Leadership has been designed for 53 CEOs and members of management committees.

5.1.1.9. Performance evaluation

MAPFRE has a standardized, 360° global performance evaluation process in place, made available to 98% of the workforce, which features a global platform that facilitates the evaluation of employees in all countries, through a process that ensures agility and continuous feedback, both qualitatively and quantitatively, between all profiles and levels and at every stage of the performance process.

Specifically, objectives and goals continued to be defined via Management by Objectives throughout the year, availing of continuous feedback. The process ends with a final assessment that includes a 360º evaluation (with a multi-source format: self-evaluation, assessments by the employee's manager and peers, as well as clients and collaborators), and an overall evaluation of both performance and potential (and the risk and impact of loss). This assessment evaluates employees in both their individual performance and the achievement of objectives as part of a team or in the scope of a project, allowing their teamwork skills to be assessed.

The process culminates with feedback, where development expectations are discussed. New functionalities and upgrades were implemented in the process in 2023, such as Team Rater, allowing a group of people to be evaluated simultaneously. In 2023, a total of 27,552 employees participated in the process, representing 98% of the workforce.

5.1.1.10. Strategy for attracting new talent

Through external recruitment, we anticipate our company's needs for the talent and capabilities required internally at all times. This recruitment is carried out through employer branding, providers and external channels, social networks, and agreements with universities.

We have an external recruitment model in place, as well as a defined strategy for social networks and to measure the impact of our investment in this type of channel.

MAPFRE's external recruitment model enables us to identify the points to improve in each stage of the process

REQUIREMENTS	SOURCES	CHANNELS	BRANDING	MARKETING	SELECTION AND INCORPORATION
Identify those digital profiles most sought after by MAPFRE	Identify and activate the most appropriate sources for each profile	Conduct selection process, using the most effective channel	Promote employer branding to boost attractiveness of our brand among target groups	Activate specific content for particular audiences	Rigorously select profiles, focusing on the candidates' experience
What do we need?	What allies can we count on?	Where are they?	How do we attract them?	How do we communicate with them?	How do we choose the best ones?

Depending on our external recruitment needs, we use different sources and capture channels. The objectives we prioritize are personalization and search agility. A total of 60,403 candidates who are interested in working with us registered on the Work at MAPFRE global site, while employees nominated 376 candidates through the referral plan.

This year, an enterprise agreement was signed with LinkedIn to reinforce our visibility and boost our impact and profile capture strategy. As a result, MAPFRE has recruitment licenses and can publish unlimited job offers, which has helped boost the number of applications received from 154,880 to 618,705, while our follower count rose from 611,604 to 759,880.

We have also improved our recruitment across several indicators such as Influenced hires (profiles incorporated that were influenced to a degree by some of the employment marketing actions carried out) from 18.5% in 2022 to 26.1% in 2023, and Job and Life pages view (views of MAPFRE's career page and specific employer branding page) from 136,100 in 2022 to 219,800 in 2023.

New agreements were activated with recruitment and selection consultants to back up the external and global recruitment of strategic profiles, with a special focus on core insurance functions (actuarial and underwriting) and on the critical functions of transforming technology, security, and data.

To attract and retain the talent we need, we must verbalize and effectively communicate our value proposition for employees and our differentiating attributes. To this end, we created the claim MAPFRE, WHERE YOUR TIME IS MEANINGFUL, which refers to people's desire to invest their time in something worthwhile, that makes us happy. When it comes to choosing where to invest our professional time, we want to do it somewhere that has a clear purpose, and we want to know that our work has meaning.

5.1.2. Flexibility and agility

MAPFRE is an agile and flexible organization that is committed to new ways of working and understands that communication, collaboration, knowledge management, access to information and improved productivity are essential for business and people development. We have formulas and products in place that enable us to deliver flexibility, agility, and organizational efficiency, such as the Project-Based Management Model, Digital Workplace, and Hybrid Work Model, which, combined with new technologies, allow us to add value to our people and our organization.

5.1.2.1. Organization

To understand the needs of the business and adapt our organizational structure in the countries, we employ a global methodology called the Workforce Evolution Protocol, which allows us to identify the relationship between the people engaged in a specific activity and the evolution of that activity and business type. We work with a global workforce planning methodology that brings business needs closer to the required capabilities and allows us to adapt more flexibly.

In order to promote a more efficient organizational structure and more agile decision-making at MAPFRE, we aim to optimize the number of employees with existing managerial positions, understanding managerial positions as those held by people who manage other employees. The hierarchical index at the close of 2023 was 16.5%.

5.1.2.2. New ways of working

The deployment of collaborative tools used to implement our new ways of working now covers 26,557 employees in 37 countries. This includes email, audio and videoconference, chat and teamwork solutions, personal and group task management, document and knowledge managers, among others.

To ensure the effectiveness of change management, we set up an internal website to host tips, news, best practices, and common inquiries related to our productivity tools and scenarios. As part of the adoption strategy, employees have been provided with a tool that provides weekly information on their work habits (time spent on meetings, focus and concentration, channels used to communicate, frequent network of contacts, etc.) so that they can reflect on them and take corrective action.

Combined with metrics, surveys and focus groups are used to detect elements that hinder adoption and which can serve as the basis for training and/or communication campaigns aimed at enhancing adoption of new habits and more intensive use of tools available.

Workstation digitalization, which allows employees to work from any location, stood at 85.87% for 2023.

5.1.2.3. Project-based management

The project-based management model aims to personalize certain people management processes for the group involved in projects: specific training, work methodologies, responsibilities and roles of the different members of the project work team, as well as evaluation of activities associated with the project.

The model has been deployed in 7 countries, with a total of 501 projects and 1,475 employees assigned, and since the start of the project in 2021, a total of 6,783 employees have received projectrelated training.

5.1.2.4. Global hybrid remote work model

MAPFRE has a global, flexible hybrid work model in place that combines in-person work and remote work. This model combines different work modalities: in-person work, remote work some days a week and remote working every day of the week. To date, 16 countries have implemented a local hybrid work model.

At MAPFRE, 18,423 employees avail of flexible working systems.

5.1.2.5. Regulatory Policy on Telematics Code

The Telematic Code is an instrument that details how MAPFRE professionals should use the computer and telematic media put at their disposal.

This code regulates digital rights in the workplace, such as digital disconnection, privacy in the use of digital devices and video surveillance, as well as sound recording and geolocation systems.

As of 2023, the Telematics Code has been implemented in all MAPFRE countries.

5.1.2.6. Digital Disconnection Regulatory Policy

The Policy regulating the digital disconnection of MAPFRE employees, which establishes a culture of respect for the time of others, expressly recognizes the right of workers to disconnect from the work and communication tools provided by the company outside working hours by establishing express measures for the exercising of this right. Such measures regulate the hours during which communications should not be sent or expected to be responded to unless there are exceptional justified circumstances, as well as guidelines for planning and holding meetings. To ensure its proper implementation and to promote a rest-friendly culture, the policy is complemented by a change management plan accompanied by awareness campaigns related to disconnection and rest, reasonable use of technological means and awareness of respect for personal rest time.

On a regular basis, news and videos related to these new ways of working are published on the Corporate Intranet, aimed at raising awareness among the workforce about the use of technological resources.

5.1.3. Remuneration, benefits and recognition

MAPFRE establishes appropriate and competitive remuneration based on function/job position, merit and performance. This remuneration is based on applicable regulations while guaranteeing equality and nondiscrimination. The remuneration model focuses on productivity and the generation of added value, with flexibility to adapt to the different groups and circumstances of an increasingly demanding talent market.

MAPFRE has a transparent Compensation Policy, which is known to all employees, whereby remuneration is a source of motivation and satisfaction that allows the objectives set to be achieved and the strategy to be met within the framework of the company's long-term interests. This policy also promotes appropriate and efficient risk management by discouraging both the acceptance of risks that exceed the company's tolerance limits, including sustainability risks (environmental, social, and governance) and conflicts of interest. It gives specific treatment to the remuneration of the management groups and those with special impact on the company's risk profile.

The remuneration of each person is adjusted to each country and environment, and more than 23 countries have comparison systems through market surveys that make it possible to offer and maintain the most appropriate remuneration for the functions performed and the professional career.

Other components in addition to fixed remuneration are variable remuneration, recognition programs, social benefits and specific supplements applied by the function.

MAPFRE has different modalities of variable remuneration: annual target-based remuneration, medium and long-term incentives, commissions and bonuses. This year, 26,931 people are working under annual variable remuneration systems, representing 87.23% of the global workforce. And 306 people have multi-year systems in 25 countries.

Recognition

MAPFRE has various global and local recognition programs. These programs recognize collaborators for their contribution to implementing the company's strategy, achievement of extraordinary results, resolution of significant events, innovative contributions, professional careers at MAPFRE, and application of the company's behaviors and values. In 2023,19,990 employees in 19 countries participated in the different local and global recognition programs, and more than 5,400 employees were recognized in the different programs.

Benefits

MAPFRE offers employees social benefits, which are part of their "emotional salary": these are products and services that the company pays its employees to ensure their well-being, providing assistance tailored to their personal and family needs at all times. These benefits are defined and managed in each country. The benefits are offered to employees regardless of whether their contract is permanent or temporary and their workday is full-time or part-time. The amount allocated in 2023 to social benefits was 183.85 million euros.

Type of social benefit	employees
Health insurance	94.9%
Retirement and pension plans and savings insurance	69.6%
Life insurance	96.2%
Insurance discounts	69.6%
Length of service awards	29.9%
Grants for the education of children of employees at all stages of the education cycle	34.2%
Newborn child bonus	3.3%
Meal vouchers	92.3%
Loans	15.3%

benefits from among the entitled

In addition to the aforementioned benefits, other benefits are granted that help employees meet various needs: disability/incapacity coverage, employee education grants, aid for spouses and children with disabilities, Christmas gifts, awards, salary advances, shareholder participation etc.

MAPFRE pays special attention to promoting social protection systems for employees, incentivizing long-term savings, thereby guaranteeing a retirement supplement through the different plans in force.

Financial assistance is also provided to employees for special situations, usually resulting from health problems. In 2023, this assistance amounted to 572 thousand euros. Financial assistance was also given to retired employees in the amount of 1.1 million euros, of which 1,101,282 euros are bonuses for retiree health insurance.

5.1.3.1. Objectives-based model

In order to convey and align each person with the strategic goals, MAPFRE has a global objectivesbased management model in place that determines the weight of the different categories of objectives (those applying to MAPFRE as a whole and those applicable to region/country/business, area/ department) for each job position level, assigning each a weighting based on the responsibility of the job position.

Job positions linked to the sales area have their own objectives system, enabling MAPFRE to direct 100% of its workforce to objectives-based management. In 2023, we reduced the weight of individual objectives, placing greater weight on group objectives, thus fostering greater employee loyalty to the company. MAPFRE will continue to develop this global objectives-based management model through other specific systems adapted to the activity carried out, such as project bonds and OKRs , which respond to new methodologies and work environments.

There is a matrix of objectives weights as per hierarchical level in place, which applies a greater weight to company objectives for more senior hierarchical levels, and objectives more closely related to the function for lower hierarchical levels.

5.1.3.2. Stock-based flexible remuneration plans in Spain

As it did in 2023, MAPFRE launched a new flexible Remuneration Plan for MAPFRE Group employees in Spain for 2024, with the aim of boosting their connection to the company's strategy and future earnings.

The plan, similar to the previous one, offers the possibility of voluntarily allocating an annual amount of remuneration to the purchase of MAPFRE S.A. shares (between 300 and 12,000 euros per year). These shares will be issued monthly throughout 2024, free of charges for the employee, through MAPFRE Inversión.

The shares received will give full right to participate as shareholders in the future dividend of the company, and to the application of the corresponding tax benefit (except for the Basque region).

Although this edition, like the previous one, does not include the issuing of additional shares, applicants for the new Plan numbered 1,805, equivalent to 17% of the workforce in Spain), which continues to reflect a high level of employee confidence in MAPFRE's future.

In May 2023, and in relation to the 2022 Share Remuneration Plan, MAPFRE delivered free shares to each employee in proportion to those acquired and held until March 31 of the same year, within the limits provided for under that plan.

5.1.3.3. Equal pay

To make good on the commitments set down in its Sustainability Plan 2022–2024, MAPFRE has committed to reducing its pay gap to +/-1% by 2024.

The calculation methodology used to determine the pay gap, verified in 2018 by the consulting firm Ernst & Young (EY), continued to be applied in 2023. It considers various factors to create comparison groups or clusters, obtaining more accurate remuneration comparisons based on the functions and responsibilities assigned to each job position.

The formula for calculating this type of gap is the following:

In general, MAPFRE Group companies took several actions to reduce the pay gap, including:

• Pay analysis of company hires.
• Analysis with special focus on promotions.
• Ongoing review of the Job Map in order to verify the correct positioning of workers.
• Budget allocation to make appropriate adjustments to remuneration.
• Awareness-raising and information actions aimed at supervisors on the pay gap in general and, in particular, on cases detected in their respective areas that need to be addressed.
• Creation of pay gap dashboards and calculators with advanced analytics tools and data display for faster and more efficient monitoring.

The Group's global adjusted gap, considering 99% of the workforce (excluding BRASILSEG and Funespaña), is shown in the accompanying table.

Indicator	Difference between men and women (%)
Average adjusted pay gap in fixed remuneration	1.36
Median adjusted pay gap in fixed remuneration	0.90
Average adjusted pay gap in variable remuneration	1.83
Median adjusted pay gap in variable remuneration	2.33

For more information on the pay gap, please see 8.2. Notes on additional information / Note 5.2. Information on remuneration, page 220

5.1.3.4. Collective bargaining

Collective bargaining is an instrument for regulating the financial conditions, social benefits, and other working conditions of MAPFRE employees.

Since collective bargaining is not structured in the same way in all countries, MAPFRE does not have a collective agreement applicable in several countries because the legal, social, or industry conditions that would facilitate this do not exist. As a result, 62% of MAPFRE employees are covered by collective agreements in 10 countries.

It should be noted that the coverage of the workforce under collective agreements that MAPFRE has in the countries listed below is significant, as detailed in the accompanying table.

COUNTRY	% of employees covered by a collective agreement
ARGENTINA	78%
BRAZIL	100%
SPAIN	100%
PORTUGAL	98%
ITALY	98%
MALTA	88%
URUGUAY	99%
VENEZUELA	99%
TUNISIA	99%
FRANCE	100%

The main collective bargaining agreements reached between MAPFRE and the workers' legal representatives in 2023 are detailed below.

• In Spain, the IV Equality Plan, the Trade Union Rights Agreement and the MAPFRE Insurance Group Teleworking Agreement.
• In Uruguay, there was an addendum to the Collective Agreement.
• Collective Agreements were negotiated in Peru and Brazil.
• In Argentina, the sector's salary agreements and updates to compensation for teleworking expenses.

In total, 57 agreements were signed with the workers' legal representatives during 2023.

5.1.4. Health and Well-being

At MAPFRE, people are our main asset, and taking care of their physical and mental health, safety and well-being is our top priority. MAPFRE has undertaken to provide safe and healthy workplaces, safeguarding the right that everyone has with regard to protecting their health and integrity, even outside of the work environment. The Company is also committed to integrating the prevention of occupational risks and the promotion of health and well-being in all of the company's activities and decisions, at all levels of the organization. Furthermore, it follows an occupational health and safety management system, the Healthy Company Management Model, based on ISO 45001, with a global scope and local implementation through actions adapted to the reality of each country, based on a process of continuous improvement, which extends to the main stakeholders.

MAPFRE has policies in place approved by the MAPFRE Board of Directors that underpin safety, health and well-being: Code of Ethics and Conduct; Policy on Health, Well-Being and Occupational Risk Prevention; Corporate Sustainability Policy; and the Diversity and Equal Opportunities Policy.

The identification and prioritization of the most relevant aspects (risks and opportunities) within the organization has enabled us to establish a Healthy Company Strategy for the period 2022–2024. This serves as a basis on which we can define global and local actions and objectives, quantified through annual planning, that address health and safety risks in the workplace and thereby ensure continuous improvement. The general objectives of our Healthy Company strategy are as follows:

• To consolidate a work environment that protects the health, safety, and well-being of everyone involved with MAPFRE, so they can perform their work under the best physical, psychological, and social conditions possible.
• To foster and protect the physical and mental health and well-being of all people who work at MAPFRE and their families, both in their personal lives and at work.
• To minimize occupational risks in order to prevent accidents at work and occupational disease, while also helping to reduce absenteeism for health-related reasons.
• To contribute to MAPFRE's commitment to the Sustainable Development Goals, especially SDG 3 Good Health and Well-Being, which is one that the company has prioritized.
• To improve MAPFRE's positioning as a healthy company.

Within this strategy, mental health and cardiovascular health have been prioritized, and quantified objectives have been set down for absenteeism. Other Healthy Company indicators have also been defined, which are monitored as part of the regular activity of local teams, to ensure continuous improvement and proper monitoring of performance in the People and Organization Report 2023 / Safety, Health and Well-Being. Every year, all this information is compiled to produce a Healthy Company report, which is presented to the MAPFRE Risk and Sustainability Committee.

MAPFRE ensures regular health screening to identify and eliminate hazards and minimize employee health risks. Occupational Risk Prevention Technicians and the company's Medical Services carry out periodic risk assessments (psychosocial, health, safety, ergonomics, and others from outside our own facilities, such as those deriving from remote working and travel), along with research and analysis of workplace accidents, occupational illnesses and/or incidents, as well as absenteeism for other health reasons. The main objective is to understand the causes of health-related ill effects in order to plan and organize the necessary preventive measures to eliminate or minimize risks and reduce absenteeism. To date, 28 countries have procedures in place to investigate work-related injuries, illnesses, and incidents.

This regular health screening takes into account all the particularities of people (physical, mental or sensory disability, maternity, pregnancy, especially sensitive workers, etc.), as well as medical, psychological, and health care assistance not related to work, through MAPFRE's own medical services or external services contracted by the Company.

To promote the physical and mental well-being of our employees, action is taken in all countries to analyze the main causes of occupational stress, identifying effective solutions and establishing corrective measures that improve the organization of work, promote work-life balance, and enhance people's well-being.

The various measures taken to prevent stress at work, improve the mental health and psychological well-being of workers, and reduce psychosocial risk factors include:

• Psychosocial risk assessments.

• • Psychological assistance services provided through company professionals or external professionals.
• Mental Well-being content hosted in a dedicated space on the Intranet and available to all employees.
• Webinars on stress management
• Stress management training courses, such as the Global Stress Prevention Training Program.
• Celebration of World Mental Health Day.
• Measurement of the work environment, linked to well-being in the workplace, satisfaction with work done, sense of purpose, happiness and stress.

MAPFRE provides all employees with continuous training in health and safety at work and provides non-work-related medical, psychological and health care services through its own medical services or external services contracted by the company.

The company has Health and Safety Committees in place that meet regularly with the company's management, workers' representatives specializing in occupational risk prevention and the company's Occupational Risk Prevention professionals as guest advisors. A total of 27,673 employees (90% of the workforce) are represented on these committees. Some of the main issues discussed include:

• Performing occupational risk assessments at the workplaces.
• Specific studies of certain job positions.
• Analysis of work leave and absenteeism.
• Employees returning after long-term work absences.
• Evacuation and emergency control plans.
• Health monitoring plans.
• Frequency and content of medical examinations for employees.
• Occupational health and safety management systems.

5.1.4.1. Workplace absenteeism

In 2023, health-related absences from work absenteeism were monitored, recording a total of 203 cases of work accidents with medical leave, with falls, minor bumps and accidents on the way to work being the main reasons for the resulting leave. There was one death due to a work-related accident as a result of a cardiovascular incident. The number of days lost due to absenteeism resulting from nonwork accidents and common illnesses was 227,383. Thus, the severity index was 0.16 (0.18 men and 0.15 women) and the frequency index was 3.95 (4.36 men and 3.62 women).

In order to ensure continual improvement, MAPFRE targeted a health-related absenteeism ratio of less than 3.2 as its main quantified objective in terms of Health and Safety for 2023. The absenteeism ratio in 2023 was 3.10, which entails a reduction of 0.10 points on the target. For 2024, we have maintained our target of less than 3.2.

ABSENTEEISM DATA (1,2,3)	2023		2022			2021
	Men	Women	Total	Men	Women	Total	Men	Women	Total
Number of occupational accidents*	100	103	203	92	93	185	102	86	188
Number of occupational illnesses	0	5	5	0	4	4	2	1	3
Number of employee fatalities due to occupational accidents	1	0	1	1	0	1	0	0	0
Number of employee fatalities due to occupational illness	0	0	0	0	0	0	0	0	0
Total number of lost workdays due to absence caused by non-occupational accidents and common illnesses	70,984	156,400	227,383	64,069	154,097	218,166	85,794	146,393	232,187

1. Recordable occupational injuries are reported, not differentiating those cases with major consequences.

2. Hours worked are theoretical hours.

3. Includes accidents on the way to and from work.

	2023		2022			2021
ABSENTEEISM RATES	Men	Women	Total	Men	Women	Total	Men	Women	Total
Occupational accident incidence rate	726.48	600.9	656.83	659.88	527.18	585.76	691.99	471.03	569.73
Occupational illness incidence rate	0	29.17	16.18	0	22.67	12.67	13.57	5.48	9.09
Employment absenteeism rate	0.12	0.11	0.12	0.07	0.09	0.08	0.11	0.06	0.09
Occupational accident frequency rate	29.41	24.37	26.62	27.51	21.93	24.39	28.75	19.37	23.53
Occupational illness frequency rate	0	1.18	0.66	0	0.94	0.53	0.56	0.23	0.38
Lost workday rate	1.22	1.12	1.17	0.73	0.86	0.85	1.14	0.63	0.86
Occupational accident fatalities	0.29	0	0.13	0.3	0	0.13	0	0	0
Occupational illness fatalities	0	0	0	0	0	0	0	0	0
Frequency index	4.36	3.62	3.95	4.08	3.25	3.62	4.27	2.87	3.49
Severity index	0.18	0.15	0.16	0.11	0.13	0.12	0.16	0.09	0.12
Absenteeism ratio	2.21	3.81	3.1	1.99	3.73	2.96	2.53	3.36	2.99

For more information, please 8.2. Notes on additional information / Note 5.3. Occupational accident data: calculation methods, page 227

The effectiveness of the measures, goals, objectives and indicators used to assess progress in safety, health and well-being are included in the Health and Well-being section of the People and Organization report 2023 on the Company's website www.mapfre.com/en.

5.1.4.2. Work-life balance measures

To take the best possible care of its people, MAPFRE has numerous measures in place that allow for a better balance between personal, family, and work life, with the objective of increasing their satisfaction and commitment to the company, all of which underpins a reciprocal commitment.

Work-life balance measures	No. of employees benefiting
Flexible work schedule	18,423
Part-time work arrangements	1,248
Reduced workday	1,381
Teleworking	19,866
Paid leave	13,763
Unpaid leave	2,201
Maternity-paternity leave	992
Sabbaticals for study/family purposes	75
Employee reintegration program following a protracted leave of absence	64

MAPFRE holds the Equality in the Company certification, granted by the Spanish Ministry of Equality, and the FRC (Family-firendly Company) seal from Fundación MásFamilia. We are certified as one of the Top Employers Spain 2023, we have a Sexual and Psychological Harassment Protocol in place that was agreed with the workers' legal representatives, and we have signed up to the European Diversity Charter of Fundación Diversidad.

In 2023, MAPFRE's 4th Equality Plan in Spain was signed, which affects 10,094 workers. It covers a wide range of measures that address the subjects of access to employment, training, promotion, remuneration, communication, co-responsibility for ensuring a suitable work-life balance, domestic violence, prevention of sexual harassment and gender discrimination, and occupational health from a gender-based perspective. It includes the following new features:

• Creation of a specific action protocol for the prevention of sexual and gender-based harassment.
• Adaptation to new data reporting obligations broken down by gender.
• A commitment on the part of MAPFRE to continue with training and awareness-raising on equality and unconscious biases.
• Creation of a specific communication section containing measures for victims of gender-based violence.
• A survey of the entire workforce to assess the effectiveness of the plan and the areas for improvement.

5.1.4.3. Maternity and paternity leave

Employees have various measures in place to support maternity/paternity, nursing, and care for minor children, in accordance with the legislation in force in each country and beyond the provisions of the law.

MAPFRE offers an average of 119 days of paid parental leave (maternity/paternity) for the primary caregiver by law and an average of 5 days beyond the law. For non-primary caregivers, it offers an average of 35 days of paid parental leave (maternity/paternity) by law and an average of 2 days beyond the law.

Worldwide, 66.7% of women use nursing rooms in the workplace, and 78% avail of other special measures during the nursing period, such as special flexi-time leave or reduced working hours.

In addition, 51.2% of employees enjoyed paid leave for family care, in addition to parental leave, to offer more support to families with dependents who have physical or mental health problems that require additional care.

Leave and reincorporation due to maternity/paternity:

Fully 95.1% of men, women and 79.7% of women who enjoyed maternity and paternity leave returned to work in 2023, giving a total return rate of 86.9%.

In addition, 83.2% of men and 85.9% of women who enjoyed maternity or paternity leave during 2022 remain on staff, which represents a total retention rate of 84.7%.

	2023
	Men	Women
No. of employees entitled to maternity-paternity leave	13,684	17,109
% of employees entitled to maternity-paternity leave	99.4%	100%
Total number of employees who have taken maternity/paternity leave	466	526
Number of employees who have returned to work after maternity-paternity leave in the current year	443	419
Number of employees who, after taking leave, have permanently left the company in the current year	11	44
Total number of employees who have returned to work after ending maternity-paternity leave and who were still employed 12 months after returning to work	377	517
Return to work rate 1	95.1%	79.7%
Retention rate 2	83.2%	85.9%

1 Return to work rate: (No. of employees who returned to work after maternity or paternity leave/No. of employees who should return to work after maternity or paternity leave) x100.

2 Retention rate: (No. of employees retained 12 months after returning to work after maternity or paternity leave/Total no. of employees who returned from maternity or paternity leave in the previous period(s)) x100.

5.1.5. Diversity, equality and inclusion

We live in a diverse, egalitarian, and inclusive society, which is precisely why we understand that these aspects need to be visible and have to have the opportunity to thrive in the Company, so that we remain closely connected to society and provide the best service to our clients. More than mere areas to manage, these elements present an opportunity for sustainable growth.

MAPFRE is a diverse, egalitarian, and inclusive company with a Global Diversity and Equal Opportunity Policy in place that was approved by the Board of Directors on July 23, 2015. It also has a Diversity, Inclusion, and Equity Strategy called Inclusion for Sustainable Growth.

This strategy is global and implemented in all countries that MAPFRE operates in. It comprises global and local actions that are tailored to the social needs of each country, all of which are collectively aimed at achieving the objectives set down with regard to various areas of diversity: gender, disability, generational, sexual orientation, racial, and cultural.

According to MAPFRE's Diversity, Inclusion, and Equity Strategy for the period 2022 to 2024, the objectives are as follows:

• To promote an inclusive work environment for everyone working in the company, regardless of gender, disability, age, sexual orientation, origin, nationality, beliefs, etc.
• To position MAPFRE as an inclusive company in terms of diversity, equality, and inclusion.

5.1.5.1. Gender diversity

MAPFRE's objective for 2024 is to have women hold more than 40% of leadership job positions and 35% of management job positions, and to eliminate the pay gap (with a margin of +/- 1%).

According to MAPFRE's Diversity, Inclusion, and Equity Strategy 2022–2024, the specific gender diversity objectives are as follows:

• To increase the number of women in leadership positions, especially at the management level.
• To correct the pay gap in groups where it is found.
• MAPFRE has a global catalog of measures on gender diversity, which address the following areas:
• a. Talent development.
• b. Remuneration.
• c. Well-being.
• d. Awareness raising.
• e. Leadership.

	2023	2022	2021
Percentage of women in job positions of responsibility*	42.50%	42.00%	41.60%
Number of women in job positions of responsibility*	2,926	2,761	2,620
Percentage of women in management positions	33.10%	31.70%	31.30%
Number of women in management positions	561	532	519

*Management positions: management and middle management

Main equality data for 2023

• 54.8% of new hires were women.
• 104 women hold senior management positions or positions on boards of directors. The Board of Directors of MAPFRE S.A. includes 7 women among its members, representing 46.7% of its members as at 12/31/2023. In its Director Selection policy, MAPFRE committed to having women fill at least 40% of the seats on the Board of Directors from 2022.
• 28.7% of employees in job positions considered as Top Management are women, while women hold 44.8% of those job positions considered Junior Management.
• 43.5% of leadership positions in business areas are held by women.
• 31.3%¹¹ of STEM (Science, Technology, Engineering, Math) positions are held by women.

In Spain, MAPFRE has had the MAPFRE Insurance Group Equality Plan in place since 2010, duly agreed upon with the workers' legal representatives. It promotes the principle of equal treatment and opportunities in the workplace, reflecting measures aimed at enshrining equal rights, responsibilities, and opportunities and avoiding any type of occupational discrimination between women and men.

MAPFRE has women's leadership networks in Mexico, the United States, Brazil, Peru, Turkey, and Spain to promote female leadership. These are inclusive spaces for dialog aimed at promoting initiatives on gender diversity. Their main aim is to promote initiatives that contribute to advancing equality in the company and, specifically, to increase the presence of women in leadership positions in which they are under-represented and to give visibility to the female talent in our company.

¹¹ Data calculated on the total number of IT employees.

5.1.5.2. Disability

MAPFRE has committed to having people with disabilities make up 3.5% of its workforce by 2024. At the end of 2023, the percentage of people with a disability working in the company was 3.9%.

We continue to work on improving the universal accessibility for all people with disabilities in accordance with the principle of equal opportunities and nondiscrimination. To this end, we have a global disability program in place, implemented in all countries we operate in, which contains measures to promote and ensure the true inclusion and integration of these people in the company.

As set down in MAPFRE's Diversity, Inclusion, and Equity Strategy for 2022–2024, the specific objectives in the area of diversity are:

• To increase the number of people with disabilities in the company and ensure that their employment is high-quality and sustainable over time.
• To improve the quality of life of people with disabilities, especially our employees and their families, guaranteeing universal accessibility in the labor environment.

Since 2021, MAPFRE has been part of the International Labor Organization's International Business and Disability Network. This network aims to help make corporate employment policies and practices more inclusive of people with disabilities worldwide and increase awareness of the positive relationship between disability inclusion and business growth.

	2023		2022
	No.	%	No.	%
People with a disability on the workforce*	1,090	3.9 %	992	3.5 %

*Not including data for Funespaña and BRASILSEG employees.

In order to consolidate a culture of respect for people among employees and foster behavior that favors disability and inclusion, the following actions have been taken:

• During 2023, 7,621 employees from around the world completed the Seeing without Labels course, which forms part of the MAPFRE Global Disability Program.
• 224 volunteering activities were carried out to improve the quality of life of people with disabilities.
• 21 awareness-raising talks and activities were held in our work centers.
• 49 news items were published on the Intranet.
• The International Day of Persons with Disabilities was celebrated to boost visibility of people with disabilities.

The following actions were taken to encourage the integration of people with disabilities in the workplace and to promote inclusive work environments:

• In 2023, 88 people with disabilities joined the workforce, including BRASILSEG.
• With the aim of offering job opportunities, 7 people with disabilities completed internships at MAPFRE.
• Donations totaling 171,150.42 euros were made to centers that support the inclusion of people with disabilities in the workplace.
• We help to generate indirect jobs by procuring services or products from companies that employ people with disabilities. We allocated 46,072.95 euros to special employment centers or companies with similar characteristics in 2023.

In order to improve the quality of life of people with disabilities and their families, we guarantee the principle of universal accessibility, promote accessible mobility, and use inclusive language to ensure that communication reaches everyone in the organization.

5.1.5.3. Sexual orientation diversity

At MAPFRE, we are committed to respecting and protecting human rights. We work to promote and foster an inclusive and respectful work environment that values people's talent, regardless of their identity, gender expression, or sexual orientation.

We are a signatory of the United Nations Standards of Conduct for Business in relation to LGBTI equality. These standards are based on the Guiding Principles on Business and Human Rights and the Global Compact. This commitment to human rights is reflected in MAPFRE's Institutional, Business and Organizational Principles and, expressly, in its Code of Ethics and Conduct and prevailing Corporate Social Responsibility Policy.

Moreover, MAPFRE in Spain is a member of REDI (Red Empresarial por la Diversidad y la Inclusión the Spanish business network for diversity and inclusion), whose main goal is to encourage social acceptance and the eradication of sociocultural biases and prejudices against lesbian, gay, bisexual, transgender, and intersex people (LGBTI) by raising awareness, providing training, and advising companies.

5.1.5.4. Cultural diversity

We are a diverse company. At MAPFRE, we promote an inclusive work environment where everyone is respected regardless of their culture, origin, ideology, religion, etc. We have 81 different nationalities in our workforce, which enriches the company's diversity, creativity, and innovation. We promote international mobility; in 2023, 67 employees changed their job position to another country. These employees originate from 18 countries and have been sent to 17 countries. It should also be noted that 81.9% of Senior Management and executives working in Group companies are natives of the country in which they operate.

Nationality	% of employees by nationality over the total number of employees	% of managers over the total number of managers
Spanish	35%	41%
Brazilian	16%	7%
Mexican	6%	3%
Peruvian	5%	6%
Dominican	3%	2%
Colombian	3%	3%
Argetinian	3%	3%
Turkish	2%	4%
Italian	2%	2%
American	1%	2%

(Including Funespaña employees.)

5.1.5.5. Generational diversity

In accordance with MAPFRE's Diversity, Inclusion, and Equity Strategy 2022–2024, MAPFRE favors the collaboration of people from different generations, considering their different perspectives boosts our ability to offer the best service to our customers.

Each year, we carry out a measurement to identify whether there is any gap or discrimination by age in promotions and, if so, implement actions to correct this.

• 5.4% of those promoted are Veterans and Baby boomers (those born up to 1967)
• 42.7% of those promoted are Generation X (those born from 1968 to 1981)
• 37.2% of those promoted are Generation Y (those born from 1982 to 1993)
• 14.7% of those promoted are Generation Z (those born from 1994 onward)

MAPFRE has been a signatory since 2016 to the Generation & Talent Observatory's Code of Principles on Generational Diversity, which aims to promote the development of people management based on equal opportunities, regardless of age, and to foster respect for generational diversity in Spain. We were the only publicly quoted company in Spain to be rated as "transparent" in the 2022 edition of Senior Career and Talent, a report that analyzes the level of transparency and good governance of public companies in Spain in the management of talent over the age of 50.

Five different generations work together at MAPFRE. This enriches intergenerational exchange, transmission of knowledge and values, and innovation.

GENERATIONAL DIVERSITY

8,000

(Including Funespaña employees.) 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 onward).

In Spain, we launched the Ageing Project, an initiative that aims to work on specific programs for senior workers, taking into account three fundamental lines: promoting Senior Talent, flexible working conditions, and preparing for retirement.

5.1.6. The voice of MAPFRE people

MAPFRE has an active listening and experience measurement model in place that promotes employee participation, enabling them to participate directly in decision-making on the issues that affect them. This model takes the form of an ongoing measurement of the employee life cycle, identifying the different moments of employee interaction with the company from before they join the company up to the moment they leave, complemented by the continuous measurement of employee satisfaction and commitment.

• Listening and participation groups that make up a representative sample of the workforce with specific groups (young people, senior profiles, strategic profiles, expatriates, new recruits, recent promotions, etc.). These groups allow us to explore moments of truth when they may require a different experience or treatment to that applicable to the employees as a whole.
• Transactional eNPS® questionnaires. This measurement is performed using short questionnaires that complement the listening carried out in focus groups.

The voice of employees is also measured through the recommendation, satisfaction and commitment survey, which is conducted twice a year.

• Company recommendation: Relational eNPS® : measures how likely employees are to recommend MAPFRE as a good company to work for. A total of 86% of employees work in countries with either a very high recommendation score (above 20 points) or an excellent recommendation score (above 40 points).
• Level 1 and level 2 root causes: the main reasons why an employee recommends MAPFRE as a company to work for, to a lesser or greater extent. The reasons for the recommendation are as follows:

The conditions and benefits that MAPFRE offers us	Development possibilities
Job stability	Improvement in employability as a professional
Social benefits	Promotional possibilities

• Commitment: The ESI Index (Employee Satisfaction Index) is 70%, which corresponds to the percentage of employees who rated their satisfaction with these ten variables with an average score of between 8 and 10: knowledge of objectives, pride in the work performed, recognition for the work performed, contribution to the company, receipt of quality feedback, development opportunities, collaboration, work tools, care for people, pride in the social footprint.

Commitment index by gender
Men	74
Women	71
Other	41
Prefer not to declare	50

In 2023, the commitment index stood at 70, meeting the target of 70 established for the year.

Commitment index by age group
25 or under	73
From 26 to 37	72
From 38 to 49	71
From 50 to 64	73
Over 65	87
Prefer not to declare	52

Commitment index by job position level
Advisors	72
Associates	68
Middle management and experts
Management and expert management
Prefer not to declare	58

• Management Recommendation Index: Leader Index This measures the likelihood of employees recommending their supervisors. In 2023, on a recommendation scale from 0 to 10, 62% of employees gave a score of 9 or 10.

The coverage of this measurement is more than 97.5% of employees.

• Satisfaction: The satisfaction index was 68%, which reflects the number of employees who responded with a score of between 8 and 10 for their current level of satisfaction with the company.
• Reputation: The employees gave MAPFRE's reputation a score of 8.3 out of 10.

Our measurement model also allows us to understand the work environment through a series of issues that the Global Well-being Movement links to well-being in the workplace. These include satisfaction with the work done, sense of purpose, employee happiness, and stress, and we regularly consult our employees about them.

Satisfaction with the work done
Happy at work	3.4
Work-related stress	3.4
Sense of purpose	3.9
Connection with MAPFRE's purpose
Feeling of contributing to MAPFRE's purpose	4.0

Scored out of 5

Continuous listening to the voice of our people is also facilitated through the ongoing conversation that leaders have with their teams, as well as through formal and informal meetings of management bodies with employees and other listening, participation, innovation and co-creation initiatives promoted by the company. The information compiled on the employee experience through this constant listening is centralized and used anonymously via dashboards, thereby allowing the employee's voice to be integrated into decision-making and the results of the listening process to be shared with the entire organization in an open manner.

5.1.6.1. Legal representation of workers

In addition to the above mechanisms, MAPFRE maintains a permanent and direct dialog with its workforce, reporting information on all relevant aspects, listening to its opinions and requesting its active participation through different channels.

One of these channels is undoubtedly the legal representation of workers (unions, business committees, etc.). Therefore, in countries where such representation exists, communication on issues concerning labor relations is channeled through it.

MAPFRE guarantees and respects the freedom of union, association and collective bargaining of its employees, although it should be noted that the election of legal representatives is a right that corresponds voluntarily to the workforce itself.

Currently, 51% of the workforce is represented by workers' legal representatives. In Argentina, Germany, Brazil, Spain, France, Malta, Tunisia and Venezuela, union affiliation ranges from 45% and 100%.

The relationship between the company and the legal representation of workers is conducted through the following channels:

• Within the company's participation bodies with the workers' legal representatives and formal commissions.
• Periodic meetings agreed by both parties.
• Direct contact via telephone or email.
• Teams channels for exchanging information.

In addition, workers' legal representation communicates with employees through specific email accounts or intranet spaces, visits to work centers and spaces for meetings or assemblies that the company provides for communication and dialog with employees.

5.2. We generate business for our providers

MAPFRE aims to ensure ethical and socially responsible conduct on the part of all providers that provide a service, either to the Group or directly to our customers while maintaining an adequate level of service provision quality and high internal control standards in all stages of the process.

To this end, the Company has a procurement standard in place that aims to establish financial, environmental, social, and governance (ESG) criteria, as well as mandatory principles that must be respected in any procurement the Company engages in.

The Group's Code of Ethics and Conduct features a specific section for providers and collaborating companies that determines the framework within which the relationship must be developed.

The Group works with approximately 125,000 providers who bill more than 4.5 billion euros annually. Providers are classified into two categories:

• Service providers (those who render services deriving from insurance contracts or services offered by Group insurance companies or their subsidiaries to customers).
• Support or general providers (those that have any MAPFRE Group company as their end client, for activities such as supply management, consulting, printing, etc.).

To strengthen its relationship with providers and provide better customer service, MAPFRE offers various materials, training dossiers, action procedures, tools, and online or in-person courses, which facilitate their work and provide knowledge on various topics, such as legislative changes, technological developments, as well as other relevant issues in the field of sustainability.

5.2.1. Service Providers Operating Management Model

Service providers are an extension of the company in its dealings with the customer. In view of their importance, the company has a Provider Management Operating Model in place, which is an updated version of the Brand Ambassador Model, for the Automobile and P&C lines of business. Execution of this model revolves around defining the different processes, procedures, and operations that establish best practices, always in accordance with the prevailing legislation in each country, thereby complying with the legal requirements corresponding to our services.

The Provider Management Operating Model comprises a set of general principles, applied worldwide, that define the management model, which are:

• Technical rigor
• Orientation and optimization of customer contact
• Vocation for service
• Operational efficiency
• Risk control and internal control
• Innovation and continuous improvement
• Corporate Sustainability Policy

We have established a shared contribution system that facilitates constant feedback between MAPFRE and its providers, so that any deepening of the relationship under this model implies establishing new and more demanding commitments on both sides. These commitments make it possible to establish different categories of providers, depending on the degree of loyalty. The highest exponent is the "Brand Ambassador," whose members reach the most demanding standards of service and professionalism.

Brand Ambassadors are fully committed to MAPFRE, participating in the economic model, advocating for the MAPFRE brand, and contributing their knowledge and experience to the design of new products and services.

To date, the Provider Management Operating Model has been deployed in 19 countries in five regions for the Insurance unit the company's insurance unit, as well as in Mexico and Colombia for the Assistance business unit (MAWDY).

In order to meet the established target, the following functions are performed: setting up the right processes, designing the most appropriate structures, ensuring compliance with regulations and general rules, monitoring the results of the countries/regions, and defining and implementing an operational internal control model.

It should be noted that the specific Spare Parts Management Model was reinforced in 2023. This model establishes guidelines for proper management and action in the procurement of spare parts, a fundamental element in vehicle repair. It benefits everyone: customers, providers, and the company itself. It allows us to be more efficient, generate financial savings, and most importantly, improve the quality perceived by the customer. This model has been deployed in five countries: Colombia, Brazil, Ecuador, Paraguay, and Mexico

5.2.2. Support Providers Global Procurement Model

The procurement strategy is defined centrally and is implemented in a decentralized manner by each country through its procurement group, which have the authority to enter into contracts.

The procurement model is devised on the basis of five fundamental aspects:

• 1. Rules and Procedures: General Procurement Rules and Procedures, in addition to the local procedures of each country/organization with local specificities.
• 1. Function Governance: Centralized strategy defined by Corporate Procurement and executed autonomously by the different countries and organizations.
• 1. Procurement Process: Defined globally but adapted to the peculiarities and size of the organizations.
• 1. Organizational Structure: Specialized and professional procurement teams with support from Corporate Procurement.
• 1. Procurement System: Global procurement system (SAP) with consolidated information at group level (covering companies and countries that account for more than 90% of the expenditure in the area). The evolution of the global procurement system (ARIBA) for procurement management is currently being implemented as a five-year project.

5.2.3. Sustainable provider management

Sustainable provider management is a critical issue for MAPFRE, and executing on it successfully involves a multitude of policies, processes, and procedures established by the Company.

This comprehensive approach is based on control and supervision measures, as well as promoting training and awareness-raising among providers to encourage provider conduct that aligns with MAPFRE's principles of action, ensuring that the company's sustainable management standards are met. In addition, mitigation and repair plans are developed for exceptional cases, based on the Company's responsibility to remedy negative incidents that may occur in its supply chain.

Since 2019, MAPFRE has had an ESG approval methodology for providers in place. This process includes, in addition to assessing the provider's sustainability practices, training and awarenessraising related to human rights and the 2030 Agenda.

Aware of its responsibility for its supply chain amid a dynamic, ever-changing environment, MAPFRE seeks to continuously improve its provider approval process, creating more capacity to supervise its main business and support providers and developing a platform to drive the change toward a value chain underpinned by a more sustainable business model.

Over the course of 2023, this new process was deployed in Spain, Brazil, Mexico, Germany, Peru, and Puerto Rico. The process will be rolled out further to the United States in 2024, and the next countries to implement the new ESG provider approval methodology will be defined.

5.2.3.1. ESG approval process

The new provider approval process prioritizes the areas of action with the greatest impact, establishing a segmentation of providers based on an understanding of ESG risks and the adverse impacts detected when processing the information collated. At the same time, it helps to guide providers in their improvement process as they develop their own measures to drive sustainability through prevention and mitigation plans. The process developed by MAPFRE is based on the following principles:

• a. Integrity: the process considers the ESG dimensions, as well as business needs and their critical elements. The process facilitates not just the prevention of potential or real adverse effects on people, the environment, or the economy that could arise in the MAPFRE supply chain, but also contemplates how to mitigate same, or when applicable, repair of same by the provider in question.
• b. Dynamism: the methodology addresses the dynamic reality of ESG behaviors using a third party to regularly capture public incidents at company, economic sector, and geographic level.
• c. Simplification: the methodology provides for the possibility of including fast-track approval methods for providers who hold sustainability certifications or outstanding ESG evaluations. Furthermore, the level of detail of the information requested or the number of questions differs for those providers with a lower capacity to influence systemic adverse impacts such as independent or self-employed professionals versus large enterprises or business groups.

The project's initial objective is to approve providers based on a threshold that eliminates those that have a sporadic relationship with the company. The following criteria have been established for a provider to be included in the approval process:

• Support Providers: all providers included in Tier1 (95% of billing) of each country.
• Service Providers: all providers from the preferred network defined in the Provider Management Operating Model for the Automobile and Homeowners lines of business, as well as Health providers who make up 80% of the billing for this line of business.

The approval methodology comprises two main phases: in the first phase, the Providers' Initial Risk

(IR) is calculated based on business elements (billing, service, etc.) and data related to ESG matters, disputes, and incidents taken from a specialized third party. In the second phase, based on that initial risk, the Approval Process itself is carried out by calculating the Actual Risk (AR), supported by a selfcompleted and audited questionnaire, filled out only by providers whose Initial Risk is classified as Medium or High (as per a Gaussian Distribution of Risk).

Based on their responses to the questionnaire, backed by their practices, points are deducted, and we can identify providers that would be approved for having reduced their risk levels to medium or low. For any providers that remain high risk, action plans are defined to close the gaps.

ESG PROVIDER APPROVAL FLOWCHART

The following ESG risk factors are analyzed in the approval process

AREA	ESG MATTERS
	Climate change, greenhouse gas emissions, and global pollution
	Impacts on countries, ecosystems, and biodiversity
	Environment and waste (general)
	Soil and water contamination (underground)
ENVIRONMENTAL	Water use and availability
FOOTPRINT	Other environmental issues
	Impact on the community
SOCIAL AND LABOR FOOTPRINT	Human Rights violations and corporate complicity
	Consumer interests and product safety
	Influence of governance
	Child labor
	Employment discrimination
	Forced work
	Freedom of association and collective bargaining
	Occupational health and safety issues
	Poor employment conditions
CORPORATE GOVERNANCE	Corruption and fraud
	Taxes
	Market distortion and competition
	Questions relating to executive remuneration

2023 ESG approval results

For the purposes of our results, due to the update of the approval methodology, MAPFRE is considered to have started from scratch this year. The following table shows the number of approved providers in 2023 compared to the immediately preceding period, when the previous approval method was still in force, as well as the target for 2024.

No. of providers approved	2019-2022	2023	2024*
Support	2,680	776	1,534
Business	4,502	10,037	13,468

*Estimated

The results achieved at the end of 2023, using the new methodology, are shown in the tables below

Support

2023 approvals	Providers Tier 1	% of providers approved Tier 1	% of billing
Brazil	227	97.4	74.5
Spain	391	100	88.5
Peru	158	98.8	83.8

In addition to the three countries where support providers began to be approved using the new methodology, we continue to approve support providers using the old method in Honduras, Guatemala, Ecuador, Paraguay, and Argentina.

Business

2023 approvals	Preferred network providers	% of providers approved	% of billing
Germany	25	100	95
Spain	8,175	99	49.7
Mexico	1,030	92	12.3
Peru	259	94	28.9
Puerto Rico	548	77	7.8

5.2.3.2. Other provider ESG supervision, audit and control processes

In addition to the supervision and control work conducted within the framework of ESG approval, MAPFRE acts in other ways to contribute to transferring and ensuring that the behavior of providers is aligned with MAPFRE's values, policies and standards.

Environmental aspects

During the internal audit process associated with the ISO 14001 and ISO 50001 certifications, we verified compliance with all industrial and environmental safety regulations for general facility maintenance (carried out by an external provider) in 11 MAPFRE buildings located in Spain.

The audit was conducted by a specialist third party, with the participation of the technical supervisor of the corresponding maintenance company.

Information security

MAPFRE employs a methodology to manage the third-party information security risk to ensure that providers comply with MAPFRE's standards in this area.

Following the implemented methodology, throughout the 2023 financial year, the security protocols of 78 different providers was evaluated, having been applied in more than 344 tender processes.

Additionally, a specific process is being carried out to evaluate the level of security of the providers that currently provide us with critical services in Spain, in which 17 providers have been included. Expansion has begun in companies located in other countries, beginning with an analysis of 25 providers in LATAM.

Fraud and anti-corruption

As part of the management of support providers, a corruption audit was conducted in 2023 at the highest governance layer to ensure that none of the ultimate beneficiaries are involved in legal proceedings, have sanctions registered against them, or are blacklisted for related matters. A total of 56 providers representing 75 % of MAPFRE S.A.'s billing were analyzed. In no case, among the ultimate beneficiaries of the companies involved, both individuals and companies, no negative evidence or sanctions were found in matters of corruption.

Specific activity controls for service providers

MAPFRE Spain conducts regular controls on providers in the Homeowners (repairers) and Automobile lines (towing vehicles and repair shops). These controls involve questionnaires, requests for evidence and physical visits to check that all requirements are being implemented, as well as mitigation and repair actions in the event of deviations. The main matters assessed are technical and service quality issues, occupational risk prevention, the fight against fraud and compliance with fiscal and labor regulations. The main data for 2023 is as follows:

a. Property/Homeowner: more than 529 providers reviewed (11.4 % of the portfolio), 13 providers removed due to failure to provide the required information.

b. Towing vehicles and passenger transportation: 241 providers reviewed, 19 deviations found, of which 17 were resolved with action plans or significant improvements.

5.3. Protecting our clients

The customer is the focus of all MAPFRE interventions, and the customer experience is the basic pillar that has marked the transformation of all operating and business processes.

5.3.1. Key client and intermediary data

QUANTITATIVE INFORMATION AVAILABLE ON PRIVATE AND ENTERPRISE CUSTOMERS 2023

Clients
Private	28,935,057
Enterprise	1,314,392
Total	30,249,449

QUANTITATIVE INFORMATION ON OFFICES AND INTERMEDIARIES 2023

		Intermediaries
		IBERIA	16,532
		LATAM SOUTH-CENTER	22,931
Offices		BRAZIL	20,630
Direct	590	MEXICO	11,704
Delegate	4,151	NORTH AMERICA	6,331
BANCASSURANCE*	7,541	EMEA	2,872
Total	12,282	Total	81,000

*Figure refers to exclusive agreements

5.3.2. Foundations of the Customer Experience

In 2023, changes in consumer habits and behavior were exacerbated after being accelerated by the end of the pandemic (COVID-19) and the inflationary environment. It is imperative that we adapt to changes in our customers' lifestyle. To do so, new technologies offer numerous possibilities with the use of Artificial Intelligence, allowing us to hyper-personalize our customer interactions, create insurance offers that are tailored to each individual's needs, and generate personality-based experiences with our brand.

Measuring the NPS® (Net Promoter Score) customer satisfaction level remains the basis for designing and implementing actions to improve our customers' experience and exceed their expectations at the different touchpoints.

In the dynamic new environment we find ourselves, building customer loyalty is of paramount importance. To this end, the Group focuses on customer retention as soon as the first policy is sold. This involves offering value propositions that are personalized to each profile, thereby boosting loyalty.

The overall objective is for customers to feel that MAPFRE is their trusted insurance company, and making good on this demands excellence in all of our interactions with them. Defining and implementing a governance model that orchestrates and standardizes all communications has been a fundamental element in this process.

We continue working on improving the quality of our customer data in every country we operate in. In addition, in 2023, we placed special emphasis on identifying new customers and those that generate the most business for MAPFRE, through the adaptation of sales agreements.

Another important area we worked on was managing our customers' consent to support and drive transformation at MAPFRE, enabling us to exploit data while adapting to the changes in privacy and data protection (GDPR).

We cooperated with all countries to determine the degree of client orientation at MAPFRE, establishing a road map for the coming years based on the current situation of each country and its market positioning.

In short, by deploying a customer-centered strategy, we can raise their level of satisfaction with the brand and strengthen their links with it, generating value for the business by boosting sales and customer loyalty.

5.3.3. Our products

At MAPFRE we have a wide portfolio of products and services covering every need that private or enterprise customers have in the various countries we operate in. Every one of our products is adapted to the market and legislation where it is distributed, so the same insurance product or service may vary depending on the market characteristics.

In all products, underwriting and pricing criteria are contingent solely on aspects related to risk profiles, which in no case take into account elements that may be subject to discriminatory treatment toward people.

5.3.3.1. Insurance for private customers

Automobile insurance

These insurance products offers different types of coverage for all types of vehicles: third-party liability, own vehicle damage, mobility guarantees, and personal assistance, etc. To deliver the best customer service, we operate a wide network of providers and collaborating companies, comprising workshops, appraisers, tow truck services, attorneys, etc. in all the countries we operate in.

At MAPFRE, we monitor and put the main trends in auto insurance worldwide into practice, such as a premium calculations based on driving style or distance traveled, driver assistance systems; insurance for electric vehicles and insurance for personal and shared mobility vehicles, policies for leasing or renting vehicles and for pay-as-you-drive car sharing platforms. Some of these products are already being offered in certain markets, in response to consumer demand. When offering these types of products, in some cases, information is obtained directly from the connected car in real time.

Homeowner's insurance

There are various types of homeowner's policies available, from the basic policy for essential risks to the most comprehensive, with additional coverage and services. Among the new features added to homeowner's insurance are coverages for the repair of appliances, a handyman repair service, computer assistance, and devices that detect water leaks.

Health insurance

With this policy, the insured party can access covered medical services through the different types of insurance available: reimbursement of medical expenses, healthcare assistance, compensation, dental, serious illnesses, and international health insurance. These MAPFRE services are provided through an extensive network of healthcare providers.

The latest trend in health insurance is preventive care, which includes medical check-ups to detect risk factors, video consultations, digitalized care services and chronic disease management. This trend, together with the aging population, are aspects where MAPFRE has been developing new capacities to meet new customer needs, as well as a hub in the health ecosystem, where SAVIA stands out.

Life insurance

Life insurance protects families against unexpected events in its risk modality and is an important financial planning tool in the savings modality.

MAPFRE complements its offer of differentiated Life insurance solutions with specific pension plan solutions in the 22 countries where it operates directly in this business.

In 2023, together with Banco Santander, we launched a reverse mortgage product in Spain, and in Brazil we added the precision oncology medical service to our individual risk products. Both initiatives are examples of innovative solutions to safeguard the well-being of our customers.

Mutual funds

In some countries, MAPFRE manages and markets mutual funds as a financial instrument that is

complementary to the management of its customers' savings and investments.

Other insurance for individuals

MAPFRE also offers a portfolio of products that adapts to the different life circumstances of individuals, completing its offer with condominium insurance, travel insurance, burial insurance, pet insurance, personal accident insurance, recreational boat insurance, and insurance for phones or electronic devices, among others.

5.3.3.2. Enterprise insurance

Business insurance

This product range provides protection for the various assets that belong to companies as well as their income statement and third-party liability. They are designed especially for small and mediumsized companies and for industries ranging from manufacturing to public and private services.

Business multirisk insurance:

This product range provides protection for the various assets that belong to companies as well as their income statement and third party liability. They are designed especially for small and mediumsized companies and in industries ranging from manufacturing to public and private.

Other insurance for businesses:

In addition, MAPFRE has other products for companies, such as transport and aviation (both for goods and ship hulls), construction and assembly, business interruption, machine breakdown, credit and surety, agricultural operations, automobile fleets and cyber-risks, among others.

Moreover, companies also have protection needs for their employees and collaborators, and MAPFRE offers a range of products and services for these groups, such as life and disability products, health, accidents, burial, company pension commitments, international employee benefit programs, as well as other group life savings insurance.

It's important to highlight the insurance and services of the Assistance Unit (MAWDY), related to areas such as roadside assistance, travel, health, homeowners, vehicles and the protection of purchases and goods.

5.3.4. Distribution channels

At MAPFRE, we're committed to multichannel distribution, prioritizing the most relevant channels in each country.

This enables us to achieve a balanced distribution between the Life and Non-Life businesses, with the exception of Bancassurance (in Life) and External Networks (in Non-Life).

To strengthen the Life business, projects have been launched to generate value for distributor clients, highlighting the creation of a specific multi-country network for this business in six markets in Latin America.

Continuous action is carried out across all channels to ensure maximum efficiency in the sale of products and transparency to consumer clients. These initiatives include training, detailed product information on company websites, and exhaustive information in brochures, terms and conditions, and welcome packs.

Exclusive networks

These networks are the benchmark distributor in Spain and are also very important in other countries, such as Paraguay, Portugal, Uruguay, Malta, Turkey, and Peru.

In 2023, we worked to strengthen these networks with a focus on efficiency and productivity.

Non-exclusive agency network

Over the course of 2023, we prioritized the implementation of our strategic pillars with global brokers with a focus on LATAM. Our strategy is based on the following four pillars:

• a. Improving the relationship model in the countries focused on profitable growth.
• b. Optimizing our business knowledge of global brokers.
• c. Increasing MAPFRE's participation in broker portfolios.
• d. Optimizing the structures that interact with brokers to achieve a technical and sales balance.

Over the last three years, we have grown net written premiums with global brokers by 20.8%, matching their own level of revenue growth in the market. Our penetration in LATAM represents approximately 8% of premium volume of the six main brokers we work with across the region. Our strategy will help increase our share in lines of business based on MAPFRE's risk appetite.

From the perspective of local brokers and independent agents, given the importance of understanding their needs and our operational position in the markets with respect to our competitors, in 2023 we implemented the NPS® survey in additional operations: Spain, Mexico, and Central America.

We also worked on tools to increase the productivity of Agency Networks in several countries in 2023, notably Brazil, Mexico, and Peru, which now makes it possible to:

• Be more agile and efficient in the use of our commercial resources.
• Give greater visibility to the quality of production.
• Work with a unified vision of the business contributed.

The foregoing aspects are executed while adapting to the circumstances of each country.

Bancassurance

The most notable exclusive agreements in place are with Banco Santander and Bankinter in Spain, Banco do Brasil in Brazil, Bank of Valletta in Malta, and BHD in the Dominican Republic. Furthermore, in 2023 we worked on new agreements, such as LAFISE, and on strengthening existing ones, approving an important growth plan in Banco BHD.

Distribution agreements

The distribution of insurance through agreements is accelerating, and although MAPFRE already has extensive experience in this channel, it's important to understand and take advantage of the sales, technical, and technological trends that are taking place. To this end, we are working to identify a scalable model that is easy to replicate in the countries, allowing us to increase our participation in tenders, have more contact with potential partners, and sign and leverage agreements.

Distribution agreements contribute 9.8% of MAPFRE's premiums, and the market is expected to continue evolving to the point that such agreements will represent approximately 30% of total premiums.

5.3.4.1. Omnichannel capacity in the relationship with customers

With a solid structure consisting of 39 contact centers, our company continues to stand out by offering customers, providers and other value chain users an incomparable set of technical and human capabilities. We are committed to facilitating and enriching communications that span all stages of the customer relationship with high levels of quality. Proof of this is the implementation during 2023 of the new comprehensive contact center cloud management platform in Spain, the United States and MAWDY.

Continuous growth is being recorded in the business units in the countries where MAPFRE operates, where new promotion and transformation strategies are generating significant expansion across the digital channels. Customer interactions in our contact centers through platforms such as WhatsApp, Telegram, and Facebook Messenger are experiencing a significant increase, managed by a qualified team that offers an efficient, effective service tailored to the latest technologies. We are at the forefront, providing innovative solutions to meet our customers' changing demands in the digital world, such as compliance with optimal quality standards, adapted to the service offered through new channels, as well as a constant measurement of the customer experience. One example is the implementation of a ROPO (Research Online, Purchase Offline) model in Puerto Rico that adapts to our customers' preferences when selecting a channel to search for information and make their purchase.

These keys have been essential to provide faster and more accessible service from our contact centers. Contacts through non-telephone channels represented 18% of total incoming interactions with customers and providers in 2023.

Despite the growth of digital channels, the telephone channel remains crucial among our customers' contact preferences. For this reason, we continue to implement operational programs and models designed to boost the quality and agility of our service in order to exceed our customers' expectations. Our excellent global contact center model, which is constantly evolving, and creation of additional specific models allows us to incorporate the best management practices.

Furthermore, implementing new technological tools for contact management has been key in strengthening the customer relationship. We have more customer information, regardless of the interaction channel. This omnichannel strategy has enabled us to dynamically adapt our service models to offer more personalized and efficient experiences.

	% compliance with service level KPIs
Region	2021	2022	2023
IBERIA	94%	91%	93%
LATAM SOUTH-CENTER	87%	88%	91%
BRAZIL	94%	95%	95%
MEXICO	93%	95%	92%
NORTH AMERICA	98%	97%	98%
EMEA	90%	92%	83%
TOTAL	92%	92%	92%

2023 data by regional area

With regard to the Customer Self-Service Model, we continue to evolve with the objective of offering a growing set of functionalities to business units while encouraging their use in all countries. In 2023, we implemented a chatbot for customer self-service in Chile and a virtual assistant on the MAPFRE Spain website. We also developed a hybrid agent-chatbot model on the WhatsApp customer service channel that could be implemented in other countries. As a result of these implementations, customer contacts through self-service sites grew 40% in 2023, confirming the growth trend of recent years. We also continue to improve other models within our Self-Service Ecosystem, such as the Provider Self-Service online platform, generating a product that is more suited to local needs. This basic product has functionalities that provide us with more information on the services requested from providers in order to proactively inform customers of the status of these services.

In addition to self-service platforms, MAPFRE continues to increase its presence in digital channels and media, which are highly demanded by customers, such as the addition of virtual assistants in WhatsApp that help manage simpler contacts. In 2023, customer contact management via virtual assistants increased by 35%.

The customer contact digitalization indicator was up by 7.6 percentage points (compared to 2022) thanks to an increase in virtual assistants and traffic on self-service portals.

At MAPFRE, we drive process transformation by implementing technological solutions that result in competitive advantages that in turn increase efficiency and quality. These solutions include technologies based on machine learning. For example, we have used cognitive image processing to implement vehicle self-inspection and claims assessment, we developed a tool for digital verification in the Automobile business line in Spain (for the pre-owned car market), and have automated processes for email and document processing.

In addition, the evolution, modernization, and appification of core markets is necessary to take advantage of digitalization and automation. The new cloud-based insurance platform in aaS (as a Service) mode is already a reality and will continue to broaden its functional coverage, users, and usage by countries in the coming years.

The main advantages of these types of solutions are reduced operating times, reduced operational load, increased capacity, and enhanced customer experience.

Service centers (global information)

Service center	No.	Countries
Claims handling and rapid payment centers*	37	7
Automobile service centers*	34	1
Automobile diagnostic units*	1	1
Number of repair shops*	7	2
Number of repair shops with agreements for the repair of vehicles	12,772	24
Healthcare polyclincs*	21	4
Dental clinics*	4	1
Clinics with signed agreements	11,204	14
No. of healthcare professionals with whom agreements are in place	26,327	11
Research and development centers	4	4

*Owned and operated by MAPFRE

5.3.4.2. Digital business

MAPFRE continues to operate through three digital business brands: MAPFRE, Verti, and Savia. At the close of 2023, digital business growth was 7.1%. During this period, we managed to increase the value of existing digital capabilities, gaining maturity in the processes and operations of digital capture, online pricing, digital customer management, and advanced fraud detection, among others. New scalable digital capabilities were also provided to the Group, mainly focused on improving digital acquisition and sales, developing new digital distribution channels with a focus on digital partners, and improving profitability. Special attention was paid to the exploitation and activation of digital data and customer knowledge as transversal themes, as well as to the application of digital business logic to the rest of the Group's structure and models.

The main lines of action where progress was made in 2023, structured into three strategic focuses, were as follows:

Promotion of disciplined digital business growth

• We improved attraction and conversion by developing the Contact Center ROPO multichannel corporate solution (telephone, chat, and messaging/WhatsApp) piloted in Puerto Rico, and management of digital leads via WhatsApp for Life sales advisers, piloted in Brazil. We also developed a new corporate solution for the mass generation of personalized web pages for offices and sales networks, as well as an office search tool for our sales portals.
• In order to strengthen new distribution channels, we focused on the management and development of digital partners, continuing to improve the model already implemented in eight countries with specific upgrades, such as user experience improvements for agreements in Brazil, or the implementation of dashboards for managing agreements in Mexico and Peru. We also worked on its implementation in three new countries (Germany, Italy, and Puerto Rico).
• We strengthened the adoption of best practices for direct retention in the Group, together with the Clients area, carrying out specific analyses in terms of strategy, market, and implemented capabilities. Based on the above, we generated a detailed action plan with a basic transversal component for improving measurement and data-based decision-making.
• We continue to comprehensively manage the price comparison business, with the construction of a related tool and its analysis and execution in five countries, Spain (both in MAPFRE and Verti), Italy, Germany, Mexico and Brazil. In addition, we have made progress in leveraging data from the multitariff project in Brazil.

Consolidating new foundations of digital business

• We improved the management of the digital journey of users and customers based on the continuous optimization of the digital user experience. We have a digital design system that allows us to define new digital assets and update those already developed, ensuring compliance with brand guardianship best practices and the application of an advanced and tested digital experience, generating internal efficiencies. We deployed a new platform for testing and personalization of digital processes, for direct management by the Business teams to optimize results at different points of the customer's digital journey.

• We developed digital Automobile insurance quote processes via WhatsApp.

Developing the digital analytical model

• During 2023, the solutions necessary to maintain digital activity measurement models were deployed throughout the Group ahead of the widespread disappearance of cookies in 2024.
• We continued to strengthen digital business capabilities for advanced analytics and data by developing pilots for the Customer Data Platform (CDP), which allows for data to be organized through different points of contact, customizing actions, and channels. In addition, we deployed predictive digital business models in Spain and Germany, based on a selective advertising purchase solution in search engines that considers the online calculation of the customer's value.
• We strengthened the measurement of digital business and data-based decision-making through the digital business result in the different countries and established actions for monthly monitoring in 2024 in a standardized manner. We also improved the activation and exploitation of digital business management indicators in Spain, Brazil, USA, Mexico, Germany, Peru and Puerto Rico, which will allow for a more objective allocation of resources.

5.3.5. Customer satisfaction

Improving the quality perceived by our customers and other stakeholders is a top priority for MAPFRE. Since 2015, global models have been defined to help us understand the experience of the different types of customers.

The global models for measuring customer experience are made up of homogeneous elements for all countries and businesses, and they use tools to prioritize the measures with the greatest impact on customer perception of quality. By doing so, we can identify the company's strengths and areas for improvement.

The MAPFRE Quality Observatory is responsible for defining the models and carrying out comprehensive measurements of the client experience. This observatory guarantees that the results obtained are statistically representative and objectively reflect the level of customer experience for the entire Group. It also carries out diagnostics based on the results of the measurements, assisting with the decision-making process in the different business areas.

These measurements are taken through surveys of internal and external clients in all the countries and businesses in which MAPFRE operates, covering the insurance, reinsurance, global risks and assistance services lines. They are based on the NPS® methodology, which measures customer perception through their likelihood of recommending the company to their friends or family members. This indicator also allows us to measure the customer's objective perception of the company and willingness to renew, recommend, and cross-sell.

The first customer experience measurement model to be defined was relational NPS® , which measures the level of perception of a representative sample of MAPFRE customers and those of its main competitors in each country and line of business.

In 2023, another relational NPS® measurement wave was carried out, involving a representative sample of MAPFRE's portfolio. This wave, with more than 75,000 respondents, covered 18 countries and lines of business. Approximately 88 companies were analyzed around the world. Comparing the results of MAPFRE companies in recent years shows that the percentage of businesses whose NPS® exceeds the market average is detailed in the accompanying table.

2020	2021	2022	2023	OBL 2023	Goal 2024
82.3%	88.74%	87.42%	92.94 %	>= 70%	>= 70%

The degree of coverage weighted by the percentage of Group Non-Life premiums was as follows:

2020	2021	2022	2023
80.5 %	79.9 %	80.7 %	74.52 %

To complement these measurements of relational NPS® , the Quality Observatory defined a Global Model for transactional NPS® , which allows MAPFRE to determine customer perception in real time after interacting with us. This model is already deployed in Brazil, Spain, the United States, Puerto Rico, Mexico, Peru, Chile, Panama, Costa Rica, Nicaragua, Honduras, Salvador, Guatemala, Dominican Republic, Germany and at MAWDY in Italy.

When analyzing the results of the measurements in the relational and transactional NPS® programs, the distributor client has been observed to play an important role in the end client's experience. Therefore, it is essential to determine this group's perception of MAPFRE. To meet this objective, in 2022, the Global Distributor Client Relational NPS® model was defined; and in 2023, the broker's experience with MAPFRE and its competitors in Brazil, Spain, Mexico, and the Dominican Republic was measured. Specifically, the perception of the brokers who collaborate with MAPFRE in aspects such as their relationship with the company, the levers of success, the support and advice offered by the company in the sale of policies and how the policy was used by the end customer were assessed.

Based on the results obtained in the surveys, the Corporate Business Area coordinates all transformation actions and plans aimed at improving perceived quality (relational and/or transactional). Through these plans, and thanks to the information gathered in the surveys, MAPFRE is able to better understand its customers and adapt processes to their needs, focusing on weaknesses as well as strengths. All of this work will enable us to not only improve the NPS® , but also to reduce social, economic, and personal risks derived from an unsatisfactory perception of MAPFRE's service. In addition, by boosting these strengths, we can attract a new portfolio of clients through the power of recommendation by MAPFRE promoters.

In order to continue learning about our different client types, in 2023 we defined a global framework to understand the enterprise-level client, starting with small and medium-sized enterprises, describing the issues we were interested in learning more about, at what point to measure the customer experience, and what roles or positions should be surveyed.

Also in 2023, the Quality Observatory conducted the sixth measurement of internal customer experience (eNPS® ) and of the experience of cedants and brokers of the reinsurance services provided by MAPFRE RE. For the third time, it also carried out a survey on the perception of MAPFRE Global Risks' service to the Group companies with which it interacts.

At MAPFRE RE, the NPS® of external clients (cedants and brokers) remains at positive and stable values, showing an increase in their general level of satisfaction. As for internal clients (Group companies MAPFRE RE provides reinsurance cover to), very high levels of satisfaction have been recorded since 2020.

The perception of the Group companies regarding the service provided to them by MAPFRE Global Risks improved significantly in the second wave, although the trend cannot yet be analyzed because it was measured for the first time in 2023.

In addition, further improvement will enable us to provide our customers with a product and service offering that is fully adapted to their needs.

More than 260 people at MAPFRE are assigned to quality control and monitoring throughout the world, and several companies hold quality certifications. Renewing these certifications requires that these companies must maintain high customer service standards.

MAPFRE holds ISO 9001 certification in Spain and Turkey, while MAWDY holds the same quality certification in Chile, Colombia, Dominican Republic, Ecuador, Italy, Mexico, and Uruguay.

5.3.5.1. Provision of services and case file volume managed

At MAPFRE, through our service providers, we give our best every day to offer the highest possible levels of service by innovating, adapting to the needs of our customers and being there when they need us.

The Group works with around 116,000 service providers or specific providers (those who perform services deriving from insurance contracts or services offered by MAPFRE's insurance companies or their subsidiaries to their customers).

With these providers, MAPFRE guarantees service provision where and when our policyholders demand it, complying with high levels of quality (execution time, arrival time, repair quality, information conveyed during the execution of the services, guarantees for the work carried out, etc.) that are required of all providers that form part of the MAPFRE network.

Given the importance of service providers to MAPFRE's relationship with its customers, we use a specific management model based on service quality, breadth of services and a value proposition, which, from the combination of the different levels of commitment to the provider, results in the following categorization of providers: Known, Recommended, Recommended+, and Brand Ambassador.

For more information, please see the infographic Provider category defined by MAPFRE and mutual commitments, in section 5.2.1. Service Providers Operating Management Model, page 118

Taking into account these service benefits, and in cases where it's necessary to financially compensate the customers for the occurrence of the covered events, MAPFRE disbursed a total of 16.362 billion euros in 2023.

The accompanying table details the total benefits paid by regional area of the insurance unit (excluding MAPFRE RE and MAWDY).

Benefits paid- Insurance Unit (thousand euros)
Region	2021	2022	2023
IBERIA	6,460,807	5,822,244	6,443,491
LATAM SOUTH-CENTER	1,202,224	2,177,377	1,916,882
BRAZIL	1,767,496	2,195,211	1,851,486
MEXICO	727,544	621,385	1,498,219
NORTH AMERICA	1,235,469	1,672,942	1,599,473
EMEA	1,015,067	1,077,259	1,218,613
Total	12,408,608	13,566,418	14,528,164

	2021	2022	2023
% of countries where MAPFRE customer satisfaction in repairing the vehicle in the repair shop is better vs. competitors' clients	56%	63%	38.5%

5.3.5.2. Grievances and complaints

MAPFRE ensures that its customers in any country in the world where it operates in direct insurance have an internal channel available to them for the extra-judicial defense of their rights deriving from the contracts they have entered into, and promotes the internal implementation of bodies to protect customers' rights.

Information related to grievances and complaints is incorporated into the 360º customer data internal reporting and operational model. There is a specific repository that stores all details relating to grievances and complaints along with all other customers interactions. The most relevant data includes details of the request initiated by the customer, the contact method used, the primary reason for the request, the policy to which it refers (if applicable), the status of the grievance or complaint and the date it was raised.

In Spain, MAPFRE has an Insured Party Defense Counsel in place, a pioneering institution created in 1984, which is complemented by the Complaints Division that was created in 2003. The latter body is charged with processing and resolving grievances and complaints made by users against the Group companies that adhere to the Customer Defense Regulations.

The main figures regarding grievances and complaints processed in the Group in 2023 are shown in the accompanying table.

5.4. We create value for our shareholders

5.4.1. The value of communication

In the current environment and within the strategic framework of digital transformation, MAPFRE continues to commit to multichannel communication, leveraging the combination of virtual media and in-person contact to ensure fluid communication with its shareholders, analysts and investors. In this context, the senior management was actively involved in the conferences, meetings and presentations of results that took place throughout the year. Initiatives carried out over the course of 2023 include:

• In-person presentation of annual results, with the presence of the CEO, as well as post-results group meetings with analysts and investors both in Madrid and in London, led by members of the management team. Online group meetings were also organized, both before and after the publication of results.
• Within the framework of the "MAPFRE SHAREHOLDERS. A Unique Value" program, two hybrid meetings (in-person in Madrid/online) were held, plus two exclusively in-person meetings in Barcelona and Bilbao, with non-institutional shareholders, one of them led by the company's Chief Financial Officer (CFO) and two by the Corporate Director of Capital Markets & Treasurer. In addition to reviewing the company's financial results, the third quarter meeting also featured training on insurance industry concepts so as to improve the participants' understanding of same.
• In addition, numerous virtual and face-to-face meetings with investors and analysts were held over the course of the year, and the company participated in 24 conferences organized by financial institutions, resuming in-person activity in most of them and in the others virtually. Other members of the senior management team were also present at many of these events.
• In line with the company's strategic focus on sustainability and the growing importance of sustainability-related issues in society, specific requests for ESG information from investors were dealt with, in collaboration with MAPFRE S.A.'s Group Head of Sustainability.

A summary of the communication activity with shareholders, investors and analysts in 2023 is presented in the accompanying table.

Relationship Channel	No. of actions	No. of participants
Conferences, meetings and interaction with institutional investors and analysts	278	443
Meetings with non-institutional shareholders	282	638
TOTAL CONTACTS	560	1,081

With the clear objective of continuing to improve communication with our stakeholders and continuing to increase the quality and clarity of the information reported, the following actions have been implemented:

• Continuous improvement in the accessibility of the information offered in the "Shareholders and investors" section of the corporate website, with the incorporation of information about the new IFRS.
• Sending of alerts to shareholders belonging to the "MAPFRE SHAREHOLDERS. A Unique Value"

program on relevant information communicated to the market and specific events for this group, as well as the weekly Financial Newsletter in collaboration with Corporate Communication.

• Sending of alerts to analysts and investors to keep them promptly informed of any relevant information that could be of interest to them.

Quarterly publication of the infographic on the website with up-to-date information on MAPFRE, earnings results and main corporate news events continued throughout the year.

MAPFRE's shareholders and investors have various communication channels available to them that facilitate fluid contact with the company, both through the corporate website and specific phone lines and email addresses.

Relationship channel	No. of interactions
Shareholder telephone number (toll-free in Spain)	833
Mailbox on corporate website and email addresses (IR@mapfre.com and oficinadelaccionista@mapfre.com)	615
Electronic shareholder forum	201

5.4.2. Loyalty program

As part of the "MAPFRE SHAREHOLDERS - A Unique Value" program, we are committed to strengthening our relationship with these stakeholders. For this reason, in addition to the dividend and ongoing communication with our shareholders, we have a loyalty program in place which, in collaboration with Club MAPFRE, enables shareholders with at least 1,000 shares to benefit from the advantages of this program, which include a wide variety of offers and services related to:

• Simple ways to save money every day.
• Tax, health, automobile and home services.
• Entertainment offers and a calendar of MAPFRE social and cultural activities.
• Up-to-date and direct information about MAPFRE.
• Access to news about MAPFRE and exclusive shareholder promotions.

5.4.3. Creation of sustainable value

The Dividend Policy establishes that shareholder remuneration must be linked to the company's profit, solvency, liquidity and investment plans and aligned with the interests of all its shareholders. In addition, the objectives set down for the 2022-2024 three-year period include the creation of sustainable value and adequate shareholder remuneration.

5.5. Innovation and digitalization in products and services and processes

Innovation is an integral part of MAPFRE's strategy, business model and culture and is reflected in our philosophical framework. Innovation is what makes it possible to develop new products and solutions that are aligned with customer needs and respond to new market trends and environmental and social aspects.

MAPFRE Open Innovation (MOi) is MAPFRE's strategic commitment to boost customer-centered transformation. With it, we aim to foster innovation carried out by and for people. Created as an open innovation platform, MOi uses partnerships with other stakeholders and emerging technologies to make a positive impact on our business and on society. Accelerating the creation of value for MAPFRE is just as important to MOi as contributing to the progress toward a more prosperous, just and egalitarian society. Since 2019, more than three million customers have benefited from solutions originating in this model, both in terms of insurance operations (taking out policies or consuming benefits) and relational and aspirational aspects, addressing major social issues such as the democratization of medical care, support for the independence of our elderly and services designed with a gender perspective. In addition, we have analyzed proposals from more than 2,500 startups, of which more than 50 have gone through our acceleration and adoption programs, consolidating our relationship with entrepreneurs in the insurance industry and our benchmark role in the insurtech environment.

We have managed to attract the interest and attention of best-in-class projects, signing agreements with some of the most valuable startups and top insurtech solutions in the market. As part of our commitment to venture capital investment associated with the insurance sector, MAPFRE participates as the main investor in the Alma Mundi Insurtech Fund venture capital funds managed by Mundi Ventures. Fund I, with 100 million euros, has already entered the divestment phase. Fund II, with an initial close of 172 million euros and a projected size of 250 million euros, was launched in early 2022 and has already executed 17 investments, and is regarded as one of the best insurtech investment funds in Europe.

In 2023, we invested more effort and resources in growth initiatives, i.e. those opportunities that could represent a significant part of our insurance business in the future. This is how we deal with verticals already common in recent years such as health and well-being or new mobility, but also emerging risks such as those linked to climate change, cybersecurity and artificial intelligence, which we have to know how to properly assess in order to offer the best protection to our clients. Over the course of the year, we were also active in numerous transformation initiatives that seek to optimize operational efficiency and an improved user experience, automating processes such as claims handling, imagebased damage appraisal and document and image management. In this area, progress has been made in scaling up the most mature solutions to MAPFRE countries and in first deployment of the most pioneering solutions.

There follows some more detail on the aforementioned areas:

• With regard to cyber protection, the value proposition for SMEs covering the full life cycle of the cyberattack (prevention, detection, response) continues to evolve, and the opportunity for cyber protection for minors has also begun to be explored, considering both the technological solutions available and the first-hand perspective of minors and their families.
• In terms of Climate Risk, we continued testing advanced solutions that deliver more accurate assessment of risks and their future projections in different climate change scenarios. Different opportunities, ranging from advising companies to offering parametric climate index insurance that can complement traditional insurance, are also being explored.
• Mental Health problems are showing alarm growth in all geographies, all age groups and across all social strata. In 2023, opportunities were identified that focused on Spain. One of these opportunities is prevention, early detection and care in mental health disorders for adolescents through the school system. User research has been conducted and value propositions are being explored to meet this need.
• Through its Road Safety and Experimentation Center (CESVIMAP), MAPFRE has collaborated with the Upstream company to categorize the different cyber risks and their impact by marque, seeking to ensure that this analysis can be systematized in the coming years for each new model launched on the market.
• In 2023, CESVIMAP continued its Second Life initiative, dedicated to the reuse of batteries from damaged electric vehicles and evolving the mobile charging point on a three-wheel electric motorcycle, equipped with an energy accumulator based totally on reused batteries, toward its incorporation into an electric microcar, which offers greater versatility for MAPFRE in terms of rendering assistance in urban environments. The Second Life model has also demonstrated its effectiveness in its application to fixed infrastructure, with a year of operation of the local storage system for photovoltaic energy, also from reused batteries, resulting in the Authorized Treatment Center (CAT) for Damaged Vehicles in Vizcolozano in Ávila (Spain) being energy self-sufficient up to about 40%. CESVIMAP has successfully reduced the carbon footprint of its activity and has embarked on a new phase of better exploiting the remaining vehicle total write-offs. This project was recognized several times over the course of 2023 for its contribution to the circular economy.
• Anticipating the visibility generated in the media related to some electric vehicles suddenly catching fire, CESVIMAP has included in its work plans the study of different action protocols for these incidents, so as to mitigate the consequences of same, as well as the generation of 3D scanned environments that can be used to conduct forensic fire reconstruction analyzes in this area.
• Tackling the challenge of more accurately underwriting and pricing the risks associated with new mobility, CESVIMAP has begun working with digital twins, simulating real environments through which autonomous CTAG (Galicia Automotive Technology Center) microbuses circulate, and including different weather and traffic density scenarios. This generates synthetic data that the actuarial area can work with as an alternative to real historical data. In this way, MAPFRE Spain has acted as an insurer of the various pilot projects for the deployment of these autonomous vehicles in several Spanish cities and works with CESVIMAP to create a standardized methodology for the analysis of this type of new risks.

In addition, 2023 was an important year in terms of communication for MAPFRE Open Innovation. The positioning of the MAPFRE brand in the field of innovation and its specific audiences has been strengthened, giving greater visibility to innovation projects and disseminating reports related to current issues and MAPFRE's performance in this area.

In short, with the consolidation of MOi, we aim to accelerate transformation at MAPFRE and strengthen our leadership position, with more rapid adaptation to changing circumstances and moving

toward new business models and innovative solutions that arise from the digital and technological changes we are experiencing, with the ultimate aim of offering the best solutions and services to our clients.

Likewise, MAPFRE Open Innovation's activity is perfectly aligned with the Group's purpose and the United Nations Sustainable Development Goals. In addition to the existence of initiatives directly related to the objectives of Climate Action and Health and Well-being, other initiatives contribute to the goals of equal opportunities and putting an end to discrimination (Responsible AI project), the recycling goal (Second Life project) or the goal of assisting in the development of small and mediumsized enterprises (cyber protection for SMEs project).

Accumulated data for fiscal years 2023, 2022 and 2021:

• Clients who have benefited from MAPFRE Open Innovation products and services: 3,090,274.
• Initiatives developed in 15 countries.

We cannot close this section without dedicating a section to Artificial Intelligence (AI) and the numerous and increasingly frequent studies addressing its impact on the world economy. Its growing use in all sectors is an undisputed fact. Although AI has great potential to improve process efficiency and enable new options, its use is not without risks. Greater use, greater potential exposure to risks of a technical nature (performance and robustness, security), ethical (biases, explainability) and regulatory nature (compliance and responsibility). In addition, the launch of Generative Artificial Intelligence tools accessible to all types of profiles has intensified the debate, including aspects related to intellectual property and the sustainability of solutions.

MAPFRE already has more than 90 use cases in the production of Artificial Intelligence/Advanced Analytics (Machine Learning | Deep Learning). Fully 70 percent of the models are focused on issuing and Auto benefits. During 2023, six cases of Artificial Generative Intelligence were developed and launched.

The coordination of the Operational Transformation area (Operations, Technology, Data and Security), which includes MOi, with MAPFRE's businesses, has completed an exercise to identify growth opportunities associated with the risks posed by AI. A study has been conducted on the supply and demand for solutions that enable the responsible evaluation and mitigation of AI risks. The results of this report have been published to raise awareness and highlight the role of insurer responsibility. In addition, a benchmark has been drawn up for several solutions to govern AI with the intention of first applying them internally in order to manage AI at MAPFRE, thereby assuring our clients that AI is used responsibly at MAPFRE, and secondly, learning from these risks so that we are in a position to offer protection in the future to clients using AI.

5.6. Our footprint, shared value

MAPFRE is committed to the principles of sustainable development and the objectives of the 2030 Agenda.

The Company monitors and reports to its stakeholders about the environmental impacts of its activity (see section 4.5 Our Business and sustainability, page 75 and chapter 6. Committed to the Environment, page 151, the economy (see 7.4. Responsible and Transparent with taxation, page 185 and 1.7.2. Key MAPFRE financial information, page 20) and society, through value creation and distribution.

5.6.1. Creation and distribution of social value

At MAPFRE, we believe that our activity drives transformation that contributes to promoting change toward a fairer and more equitable society. In compliance with the public commitments contained in the international frameworks underwritten in the area of human and labor rights, as well as in the Company's principles and policies, MAPFRE directs its corporate strategy toward the creation and distribution of value to all its stakeholders.

MAPFRE creates value through its commitment to diversity and knowledge, promoting innovation and job opportunities for all generations; sustainable operations management, especially via sustainable oversight of its providers and strengthening its sales network; and ultimately by promoting sustainable business. It does so by analyzing the impact of its investment portfolio on the Sustainable Development Goals and its direct contribution to the 2030 Agenda.

With regard to value distribution, in addition to the positive impacts that all of the above has on society, MAPFRE shares the social value created through the exercise of its corporate citizenship through, among other initiatives, corporate volunteering activities and direct donations or collaborations with activities of special public and social interest.

In addition, the company's social footprint increases its positive impact by paying dividends corresponding to its main shareholder, Fundación MAPFRE, based on the results of the fiscal year and the shareholding structure. The Company's financial performance thus becomes another expression of its corporate citizenship by contributing to sustaining the Foundation's social purpose and independence. (For more information, see Fundación MAPFRE's 2023 Annual Report)

How MAPFRE creates value for society and how it is distributed among its stakeholders is shown in the accompanying chart.

VALUE CREATION AND DISTRIBUTION AT MAPFRE

5.6.2. Contribution to Agenda 2030

MAPFRE's footprint is reflected in its contribution to the Sustainable Development Goals (SDGs) through its activity, the implementation of its sustainability plan and its involvement in corporate citizenship.

In particular, MAPFRE focuses its actions on seven SDGs and is aware that by acting on them it generates an impact on the other 10.

For more information, please see 8.2 Notes on additional information / Note 6. Framework to identify MAPFRE's contribution to the Sustainable Development Goals, page 227

5.6.2.1. Contribution from MAPFRE's activity

From a general management and impact perspective, the Group's contribution is oriented both externally, developing products and services for all its stakeholders, as well as internally, improving its ESG procedures and performance in relation to the people who work directly and indirectly for the company and manage its assets.

The Group's contribution to the 2030 Agenda materializes mainly through risk coverage, through compensation or the provision of services. Since its inception, MAPFRE has been helping families, companies, and institutions to recover from the impact of claimable events. In 2023, 17.8 billion euros in benefits were earmarked.

For more information, please see 8.2. Notes on additional information / Note 4. Sustainable Products, page 199

Likewise, MAPFRE has proven capacity to channel the resources entrusted to it by its customers, as well as its own assets, toward sustainable investments with a positive social impact in terms of the 2030 Agenda. As an investor in public debt, MAPFRE not only creates value for all its stakeholders, but also contributes to social welfare and the protection of citizens. In its role as a buyer of debt and other corporate assets, it favors, among other things, the creation of wealth and employment.

For more information, please see Section 4.5 Our business and sustainability, page 75

Based on the firm conviction that alliances and private public collaboration are essential to contribute to the economic and social development of the communities in which it operates (SDG 17) and the role it plays as a corporate actor, MAPFRE collaborates with and shareholding in business and industry organizations that help it to shape a more comprehensive and global vision of the environment in which the insurance industry operates, its impacts, risks and opportunities, while at the same time providing an understanding of the keys to an increasingly complex and interconnected economic and social reality. It also contributes to public debate on the main issues of interest to the insurance and investment industry, specifically, and to the business sphere in general.

For more information, please see 8.2. Notes on additional information / Note 7. Collaboration and participation in industry and trade organizations, page 235

In line with the fourth pillar of the World Bank's financial inclusion strategy, MAPFRE seeks to promote the financial capacity of groups that are generally neglected by the finance sector, such as people residing in rural areas, women and agricultural microenterprises. The Company understands the financial capacity of neglected groups as the internal capacity to act in their own financial interest, under adverse socio-economic and environmental conditions. These capacities are strengthened by focusing on promoting knowledge, attitudes, aptitudes or behaviors related to resource management and the understanding, selection and use of financial services that meet the needs of MAPFRE insured parties or savers who rely on their investment products.

In 2023, among the non-financial support projects that contribute to financial accessibility that MAPFRE contributed, the innovative Bit-Makers project developed with the not-for-profit organization Instituto Futebol de Rua in Brazil is worthy of note. The project seeks to promote the technological inclusion of children and adolescents in situations of social vulnerability, which will result in facilitating their access to electronic banking and insurance services in their adulthood. So far, the initiative has served 40 children and adolescents from Curitiba and has impacted 1,200 people. Additionally, the following table reflects MAPFRE's main contributions and impacts in 2023 to the 2030 Agenda and the seven SDGs prioritized by the company, which also impact on the other 10 SDGs.

SDG	Principal Contribution
1. End Poverty	We support the resilience of 28.9 million people and their families, reducing their exposure and vulnerability to claimable events and extreme events.
3. Health and Well-being	In 2023, €1.7 million was invested in actions to promote employees' physical and psychological health both in the work environment and in the personal and family environment. 227,383 days lost due to absenteeism as a result of non-workplace accidents and common illnesses. Reduction of 0.10 p.p. in the absenteeism rate with respect to the base year (2019)
8. Decent work and economic growth	More than 112,000 people work directly or indirectly for the company and nearly 125,000 providers have service agreements with MAPFRE. 1,314,392 companies benefit from product coverages specifically designed to protect the risks of its economic activities. 27 people trained in the three calls of the CESVIMAP automotive course -subsidized by ECyL (Employment in Castilla y León)- of which 16 got a job.
11. Sustainable cities and communities	More from €100,000 allocated to investigate and reduce traffic accidents. CESVIMAP has evaluated the ADAS systems of 33 different vehicle models, extrapolating results to multiple different versions. 86% of the models in the MAPFRE Spain insurance product catalog are covered.
13. Climate action	Total PV generation in 2023 amounted to 3.52 GWh, which is equivalent to 9.3% of electricity consumed from own generation. 16 international headquarters have sustainable building certifications, representing 46% of the area of MAPFRE's main buildings.
16. Peace, justice, and strong institutions.	In 2023, 6,708 employees received 12,597,45 hours of training in prevention of money laundering.
17. Partnerships to achieve the goals	Expenditure corresponding to contributions from sectoral and institutional entities that help it shape a more comprehensive and global view of the environment in which the insurance industry operates, its impacts, risks and opportunities amounted to around €2 million en 2023.

5.6.2.2. Contribution to the 2030 Agenda through the Sustainability Plan

MAPFRE's Sustainability Plan is aligned with the following business benchmarks of the Global Compact's SDG Ambition international framework:

1. Reduction in emissions. MAPFRE has set its own greenhouse gas emission reduction objectives in line with its strategy and underwriting and investment operations. Its public commitments to carbonize investment and underwriting portfolios aim to advance a just transition to a low-carbon economy that contributes to achieving the targets set to take urgent action to combat climate change and its effects (SDG 13), which impacts on ensuring healthy lives and promoting well-being for all at all ages (SDG 3).

Objective	KPI
To reduce the group's carbon	The carbon footprint was reduced by 25%
footprint	Carbon intensity measured as total emissions (tCO2e)/employee is 2.03
To achieve carbon neutrality in main geographic areas	In Spain and Portugal, the carbon footprint has been neutralized
To support the low carbon economy	Total portfolio emissions have dropped by 35% compared to the 2019 baseline
To ensure underwriting is contributing to MAPFRE's commitment to sustainable development	100% of operations meet commitments in terms of underwriting
To guarantee ESG analysis in the underwriting process	90% of customers are rated with ESG criteria

1. Zero waste. MAPFRE has determined the source, type and amounts of waste generated that allow it to establish a baseline and identify areas for improvement in waste management. The Zero Waste certifications of its buildings, the training of its suppliers in waste management and the development of new insurance products, which include this ambition, are some of the steps taken by the Company to contribute to the achievement of the targets set out in objective 12.

Objective	KPI
Training for repair shops on how	78% of tow truck operators and repair shops from Preferred
to repair instead of replace	Network trained in repairable waste products and repair methods
Implement the MAPFRE Zero	2 buildings deploying the Zero Waste model
Waste model

1. Perception of a living wage. In labor matters, MAPFRE focuses its action on creating quality employment that contributes to the achievement of different SDGs, such as ending poverty (SDG 1), especially in vulnerable groups, or decent work and economic growth (SDG 8) for all. Salary, pay equity, ongoing training or pre-retirement support are some of the components taken into account by the company in this regard.

Objective KPI

To develop personal abilities, increase employability, and offer quality employment	The functional mobility index in the main countries where the Company operates stands at 16.1
	The Employee Satisfaction Index is 70%
	Internal promotion in MAPFRE is 76.4
	37.3% vacancies were covered internally
	973 people had a first professional experience at MAPFRE
To increase the number of people with disabilities in the workforce (directly and indirectly)	People with disabilities represent 3.9% of the workforce
	12 family members of employees with disabilities in the workforce thanks to partnerships and other MAPFRE agreements with companies
To achieve salary equity, reducing the gender-adjusted pay gap	The median overall adjusted fixed remuneration pay gap of the Group, considering 99% of the workforce, is 0.9%.

1. Zero bribery incidents. Corrupt practices prevent growth, distort competition and have a disproportionate impact on vulnerable people. MAPFRE has zero tolerance for these practices throughout its value chain. By harmonizing providers and strengthening reporting channels, the company contributes to achieving the targets of Goal 16 (Peace, Justice and Strong Institutions).

Objective	KPI
To approve MAPFRE providers in line with sustainability criteria	9.728 Business Providers in the Preferred Network approved in line with ESG criteria
	771 Support providers approved in line with ESG criteria
To improve operations and accessibility to reporting channels advance in the creation of the ethical framework for	MAPFRE has approved in 2023 the Digital Ethical Framework which, among other aspects, includes the principles to be followed by the Group so that its actions in the digital sphere are aligned with its ESG commitments.
digital governance

5.6.2.3. Corporate citizenship

The Company is also committed to multiplying its contribution to the 2030 Agenda via its corporate citizenship through collaborating in activities of public and social interest, as well as promoting corporate volunteering and channeling the commitment to solidarity of the people working at MAPFRE. For more information, please see the People and Organization Report 2023: www.mapfre.com/en

Activities of public and social interest

During 2023, MAPFRE collaborated with various cultural and social initiatives, including:

• 1. In the cultural field, in 2023, MAPFRE supported the Fundació del Gran Teatre del Liceu by extending the agreement for the sponsorship of the activities of the Museo Nacional Centro de Arte Reina Sofía, as well the sponsorship of the Verti Music Hall cultural space . These initiatives seek to help improve the social and cultural well-being of the population residing in the area of influence of these cultural facilities and all their visitors.
• 1. MAPFRE's commitment to promoting highway and citizen safety materialized in 2023 through the continuity of the MAPFRE Highway Assistance program, which is the result of a tie-up between MAPFRE Insurance (USA) and the Massachusetts Department of Transportation (MassDOT), and also through support for the bicentennial anniversary of the National Police in Spain, which was declared an event of exceptional public interest.

Contributions to activities of public and social interest, in 2023, amounted to 6.84 million euros. Of this amount, 5.39 million euros correspond to financial contributions from MAPFRE and 0.67 million to other non-economic contributions from the Company to society, such as volunteering during ordinary working time. The remaining amount, 0.78 million euros, corresponds to the monetary and nonmonetary contributions of stakeholders, mainly the people who work at MAPFRE.

The distribution of MAPFRE's contributions to activities of public and social interest are detailed in the accompanying table.

% of contributions as per their corresponding category

Specific collaborations	16 %
Community investment*	56 %
Commercial initiatives	28 %

In addition to these contributions, Fundación MAPFRE (the majority shareholder of MAPFRE S.A.) carries out activities of general interest in the areas of Social Action, Insurance and Social Protection, Culture, Accident Prevention and Road Safety, and Health Promotion, more details of which are included included in its annual report.

Promotion of volunteering

The corporate volunteering program, the management of which is certified by AENOR, mobilized 7,217 volunteers in 2023, including employees and family members, who took part in 1,997 activities around the world related to education, nutrition, health and emergency aid, among others, directly impacting 127,281 people in partnership with more than 500 entities. The 21.3% of MAPFRE's global workforce has enjoyed a volunteering experience.

Volunteering Charts and SDGs

CONTRIBUTION OF CORPORATE VOLUNTEERING TO THE SDGs IN 2023

Objetivo de desarrollo sostenible	Directos	De impacto
2. Zero Hunger	63,151	49.6%
10. Reduced Inequalities	22,858	18.0%
3. Good Health and Well-Being	14,214	11.2%
1.No Poverty	12,580	9.9%
4. Quality Education	11,872	9.3%
8. Decent Work and Economic Growth	1,363	1.1%
Other	1,243	1.0%
TOTAL	127,281	100.0%

DISTRIBUTION OF THE IMPACT OF THE SDG DIRECT BENEFICIARIES

Channeling people's solidarity commitment at MAPFRE

MAPFRE also collaborates with other social projects through monetary collections and programs such as the Euro Solidario in Spain or the Together We Give Program in the United States of America. This initiative offers employees the opportunity to donate one euro/dollar per month from their payroll to a social project of their choice, with the commitment that, for every euro/dollar donated, MAPFRE donates another.

ECONOMIC DISTRIBUTION OF FUNDRAISING BY SDG

Sustainable Development Goal	Total in euros	Percentage
3. Good Health and Well-Being	€82,196.44	54.4%
4. Quality Education	€38,494.63	25.5%
17. Partnerships for the goals	€25,079.91	16.6%
1. No Poverty	€4,280	2.8%
2. Zero Hunger	€980.42	0.6%
TOTAL	€151,031.4	100%

6.1. Action strategy against climate change

Reducing our environmental footprint is a key element of our company's interventions in the area of environmental responsibility. We are facing a climate emergency that places us at a decisive moment if we want to avoid irreversible changes in the planet. Each of us can play our part in confronting this challenge.

In order to make good on the environmental commitments set out in our Environmental Policy and meet the Group's public goal of carbon neutrality by 2030, we developed the Corporate Environmental Footprint Plan 2021-2030 to reduce and offset our environmental footprint in the countries we operate in.

In 2023, MAPFRE made progress in developing the various strategic projects included in that plan. In line with the objectives set down, the carbon footprint of the MAPFRE companies in Spain and Portugal was neutralized in 2023¹² .

6.1.1. SIGMAYEc³ - our Strategic Model

This effective management system, based on continual improvement and the principles of risk prevention and precaution, has enabled the Group to uniformly expand its corporate environmental principles.

The Environmental Policy, which is constantly evolving to include new commitments, is incorporated into organizational strategies through the operational and management procedures defined in our strategic model, the SIGMAYEc³ .

The SIGMAYEc³ , which started in the environmental area (ISO 14001), now extends to energy management (ISO 50001), carbon footprint inventory (ISO 14064) and the circular economy through zero waste (AENOR Regulation).

Its transversal design is a guarantee of success in meeting the established targets, as it incorporates all the areas responsible for the different aspects that comprise it.

Furthermore, as this system is based on a commitment to continual improvement, the effectiveness of the measures taken towards the established targets is constantly evaluated.

All actions in this sphere are verified annually by accredited third parties following the main standards of reference.

In the context of the Corporate Environmental Footprint Plan and thanks to the expansion of the SIGMAYEc³ model, the Group has set the following objectives:

¹² As of the date of this report, 17,867 tCO2e of the reported footprint have been offset. Full compensation will take place prior to MAPFRE's Annual General Meeting 2024.

2024 objectives:

• To reduce the Group's operational carbon footprint by 19% compared to the 2019 baseline.
• To neutralize MAPFRE's carbon footprint in Spain, Portugal, Brazil, the United States, Mexico, Peru, Puerto Rico, Germany, Italy and Turkey.

2030 objectives:

• To reduce the Group's operational carbon footprint by 50% compared to the 2019 baseline.
• To neutralize the remaining carbon footprint for the Group as a whole.

The progress of SIGMAYEc³ in 2023 is shown in the accompanying chart.

6.2. Our environmental footprint plan

The Corporate Environmental Footprint Plan 2021-2030 includes all the key lines of action to reduce the Group's carbon footprint by at least 50% by 2030¹³. These lines of action, which define the Group's roadmap to fight climate change, will be addressed in this chapter:

¹³ The indicators, geographic scope and business entities that consolidated environmental data in 2019 are established as a reference for the Plan.

6.2.1. Energy efficiency

Energy use in buildings is one of the largest contributors to total energy consumption and Greenhouse Gas (GHG) emissions. For this reason, making our buildings more energy-efficient is a crucial aspect of reducing our environmental impact and meeting the Group's objectives.

The Environmental Footprint Plan 2021-2030 establishes the following objectives:

Reduction in Group energy use with respect to the baseline	Baseline (2019)	Performance 2021	Performance 2022	Performance 2023	Goal 2024	Goal 2030
Total GWh of energy acquired	155	128	136	122	130	93
Percentage reduction with respect to 2019 baseline		-18%	-12%	-22%	-16%	-40%

Corporate Environmental Footprint Plan 2021-2030: Energy efficiency

Energy efficiency indicators

In 2023, we reduced energy consumption by 33.29GWh compared to 2019, a 22% decrease, exceeding the forecast 11% reduction target established for 2023.

The most important actions taken this year towards energy efficiency, as well as their impact on the associated indicators, are shown below:

• In 2023, MAPFRE reduced electricity acquired from the grid by 36.7% compared to 2019 in the Majadahonda Office building complex thanks to the photovoltaic energy production of the 4,700 state-of-the-art photovoltaic panels put in service in mid-2022. This facility generated 1.62 kWh in 2023 and prevented 437 tCO2e from being released into the atmosphere.
• Total photovoltaic generation in 2023 represented 3.52 kWh through the contribution of the aforementioned panels at the Majadahonda Office (Madrid, Spain) and the other facilities with this type of equipment: Alcalá de Henares Data Center (Madrid, Spain), Valencia (Spain), Sant Cugat (Spain), CESVIMAP (Ávila, Spain), SI24 headquarters (Ávila, Spain) Valladolid (Spain), Mallorca (Spain) Tower C at Maria Tubau (Spain), Mexico headquarters, Dominican Republic headquarters and MAWDY building in Italy and new headquarters in Peru. All this electricity production for selfconsumption accounted for a saving of 9.3% in the electricity purchased by the MAPFRE Group for these properties.
• In 2023, the awareness campaigns on heating and air conditioning in buildings continued with the aim of adapting room temperatures to improve energy efficiency: the Warm Biz Campaign in Spain and Mexico (for energy savings from heating in winter) and the Cool Biz Campaign in Spain, Argentina, Paraguay and Mexico (for energy savings from air conditioning in summer). The objective of both campaigns is to adjust the room temperature by 1°C, which translates into an estimated 7% savings in energy consumption.
• In 2023, the MAPFRE headquarters in Brazil earned MAPFRE's SIGMAYEC3 Energy Management certifications, and the company now has a total of 24 certified buildings (located in Spain, Puerto Rico, Mexico and Brazil).
• Other relevant actions aimed at improving energy efficiency during 2023 include:replacement of conventional lights with LEDs in the headquarters in Mallorca, Las Palmas, Dr. Esquerdo, Valladolid and Majadahonda in Spain as well as the headquarters facilities in Italy, Mexico and Turkey, with estimated savings of 194,161 kWh a year; improvements in the air conditioning systems of the headquarters buildings in Mallorca (Spain), Mexico, Puerto Rico and the USA, with an estimated saving of 308,947 kWh a year.

For more information on environmental performance indicators, please see 8.2. Notes on additional information / Note 8. Environmental indicators, page 240

6.2.2. Sustainable buildings

Designing and constructing a building according to the highest efficiency criteria achieves significant savings in multiple environmental aspects, such as power and water consumption, reducing the carbon footprint while improving occupant comfort due to optimized room temperatures and air quality.

MAPFRE therefore aims to obtain LEED, BREEAM, and ENERGY STAR certifications for sustainable buildings, or similar credentials granted locally, for all new constructions and major renovations. Additionally, management systems that target continuous improvement, such as ISO 14001 and ISO 50001, aim to control buildings' environmental impact and require demonstrable improvements in their environmental performance.

The 2030 Environmental Footprint Plan establishes the following objectives for MAPFRE Group properties:

Certification of buildings	Baseline (2019)	Performance 2021	Performance 2022	Performance 2023	Goal 2024	Goal 2030
Percentage of square meters in sustainable buildings	15%	35%	36%	46%	39%	50%

Corporate Environmental Footprint Plan 2021-2030: Sustainable buildings

Sustainable building indicators

In 2023, with the LEED Gold certification of the headquarters buildings in Avda. de Burgos (Madrid), Coruña and Maria Tubau (Madrid), all in Spain, there are now 16 headquarters facilities around the world that hold sustainable building certification, which represents 46% of the surface area of MAPFRE's main buildings.

• 42 offices worldwide operate under SIGMAYEc³ in their environmental and energy aspects.

For more information on environmental performance indicators, please see 8.2. Notes on additional information / Note 8. Environmental indicators, page 240

6.2.3. Carbon footprint

The MAPFRE Group is collaborating with the international climate agenda by seeking out initiatives and tangible actions that offer real solutions to the challenges of climate change, with the aim of limiting the global temperature increase to 1.5°C. Within its Environmental Footprint Plan 2021–2030, it undertakes to halve its carbon footprint by 2030 compared to 2019.

To meet its emissions reduction target, the following strategic objectives were defined:

Reduction in tons of CO2e	Baseline (2019)	Performance 2021	Performance 2022	Performance 2023	Goal 2024	Goal 2030
Total tons of CO2e	83,448	50,456	61,727	62,250	67,570	41,327
Percentage reduction vs. 2019 baseline		-40%	-26%	-25%	-19%	-50%
Scope 1 (tCO2e)	12,239	10,035	9,939	8,475	11,474	8,687
Percentage reduction vs. 2019 baseline		-18%	-19%	-31%	-6%	-29%
Scope 2 (tCO2e)	14,639	11,144	11,830	7,678	6,841	0
Percentage reduction vs. 2019 baseline		-24%	-19%	-48%	-6%	-29%
Scope 1 + 2 (tCO2e)	26,878	21,180	21,770	16,152	18,315	8,687
Percentage reduction vs. 2019 baseline		-21%	-19%	-40%	-53%	-100%
Scope 3 (tCO2e)	56,569	29,277	39,957	46,098	49,255	32,641
Percentage reduction vs. 2019 baseline		-48%	-29%	-19%	-13%	-42%
Percentage of electricity from renewable sources with guarantees of origin	59%	66%	65%	-67%	87%	100%

Corporate Environmental Footprint Plan 2021-2030: Carbon footprint

Due to regulatory requirements and in order to comply with the commitment to be a net zero company by 2050, in 2023 the Company initiated a process of reflection, the aim of which was to incorporate the value chain in the calculation of the Group's operational carbon footprint. The incorporation of the new Scope 3 categories will be progressive, based on their materiality and taking into account the relevance of the emissions, the availability of the data and compliance with the Group's internal policies. This increase in Scope 3 emissions, along with the rest of the scope changes that have occurred since 2019, will motivate a recalculation of the reference baseline. For this reason, the Environmental Footprint Plan 2021-2030 will be reviewed and updated, which will incorporate specific decarbonization objectives for these categories, which will allow us to comply with our commitments to be a carbon-neutral company by 2030 and net zero by 2050.

Operational carbon footprint indicators

• The carbon footprint in Spain and Portugal was offset for the second consecutive year, representing 21,505 tCO2e^{14 15} .
• In 2023, the Group's carbon footprint was reduced by 21,198 tCO2e, which equates to a 25% decrease, compared to the baseline set in 2019, far exceeding the 7.5% reduction target set for this year.

The reduction achieved by scope for 2019 compared to the set target was::

• Scope 1: 21% reduction, greatly improving on the 3% target set, due to direct operational decarbonization projects, ECO Fleet and ECO Heating:
  • In 2023, the fleet carbon footprint dropped 12%, thanks to the transformation of fleets to ECO vehicles, which has prevented the combustion of 191,309 liters of fossil fuel compared to 2019. By the end of 2023, ECO vehicles comprised 22% of the MAPFRE Group's total fleet.
  • In 2023, the process of transforming ECO heating systems through the ECO Furnace project

¹⁴ The commitment to carbon neutrality includes direct and indirect emissions from imported energy (scope 1 and 2), other indirect emissions (scope 3) from transport, products and services used in the company, and those associated with use of the company's products. ¹⁵ As of the date of this report, 17,867 tCO2e of the reported footprint have been offset. Full compensation will take place prior to the Annual General Meeting. 2024.

continued, with natural gas furnace in the General Perón 40 building (Spain) replaced with electric heat pumps, which reduces Scope 1 direct emissions by 102 tCO2e, preventing the combustion of 51,900 m³ of natural gas in this building.

• Scope 2: 48% vs. expected level of 29%, thanks to the 18.9% reduction in acquired electricity and the procurement of green electricity:
  • In 2023, relevant electrical supply contracts were incorporated under renewable origin guarantees in Brazil, the USA, Peru, in addition to 100% renewable contracts in Spain, Germany, Portugal and Italy. Through this purchase of clean energy, which prevented emissions of 19,170 tCO2e into the atmosphere in these countries, - 67% of the Group's global power consumption comes from renewable sources.
• Scope 3: Scope 3 emissions increased by 15% in 2023 versus 2022, mainly due to the recovery of mobility for both work centers and business trips compared to the pandemic years. Despite this backdrop of a return to normality, in 2023, Scope 3 emissions decreased by 19% compared to the pre-pandemic situation in 2019. The breakdown of evolution in mobility-related categories, which represent 97% of the Group's Scope 3 emissions, is shown in 6.2.4. Sustainable mobility.
• Regarding improvements in reporting requirements, in 2023, Panama and Argentina joined the carbon footprint inventory under ISO 14064. With the addition of these countries, 90.35%% of the Group's employees are now operating under this international standard for reporting GHG emissions.

For more information on environmental performance indicators, please see 8.2 Notes on additional information / Note 8. Environmental indicators, page 240

6.2.4. Sustainable mobility

The transport of people and goods is the sector that most seriously impacts on climate change, generating around a quarter of global GHG emissions.

This aspect accounts for 72% of MAPFRE's total operational carbon footprint and is mainly caused by employees commuting between home and work as well as business trips taken by plane, train, and car.

Therefore, MAPFRE has established two ways to cut its transport-related carbon footprint: reducing the overall number of trips, promoting work methods that are less dependent on physical presence, and encouraging more eco-friendly and collective means of transport.

The Corporate Environmental Footprint Plan establishes the following commitments:

Reduction in GHG emissions deriving from mobility	Baseline (2019)	Performance 2021	Performance 2022	Performance 2023	Goal 2024	Goal 2030
Tons of CO2e related to commuting	39,510	24,150	33,649	38,434	32,890	23,706
Percentage reduction with respect to 2019 baseline (commuting)		-39%	-15%	-3%	-17%	-40%
Tons of CO2e related to business travel	15,342	3,613	5,005	6,501	14,415	12,274
Percentage reduction with respect to 2019 baseline (business travel)		-76%	-67%	-58%	-8%	-20%

Corporate Environmental Footprint Plan 2021-2030: Sustainable mobility

Sustainable mobility indicators

The MAPFRE Group's commitment with regard to direct operations is to reach a 100% ECO Fleet by 2030 for vehicles used in 2030 operations. The 2023 results were indicated in the previous section 6.2.3. Carbon footprint

In addition to this project, aimed at decarbonizing direct operations, the MAPFRE Group is part of the 2021-2030 Environmental Footprint Plan which proposes two strategic commitments to minimize the environmental impact of mobility: Reduction of the business travel and commuting carbon footprints:

• Business travel: at the end of 2022, a new corporate travel policy was approved which was gradually implemented throughout 2023 in the different regions where the Group operates. This new policy incorporates criteria to reduce the number of trips and promote the use of sustainable transportation, such as traveling by high-speed train rather than flying in Spain. In a context of mobility already without restrictions, these new requirements have made it possible for the carbon footprint of business trips in 2023 to be 58% lower than in 2019. This far exceeds the objective set for 2023 of 4%.
• Commuting: During the second half of 2022 and 2023, hybrid work models are strengthened in the countries of the MAPFRE Group (for more information, please see 5.1.2 Flexibility and Agility, page 99). This implementation has resulted in a reduction in the number of trips made from home to the workplace, and the consequent reduction of the carbon footprint in 2023, reducing the Group's total footprint by 1,076 tCO2e, representing a commuting carbon footprint that is 3% lower than 2019, compared to the 8% target set for 2023 for this category.

The following 2023 milestones across the Group's value chain are worth noting:

• Employees: in Spain, 100% of vehicles assigned to the Group's management teams are classified as eco-friendly .
• Business: in 2023 there were 28 hybrid tow trucks and 42 fully electric or LPG-powered repair shop vehicles operating in the provider network in Spain. In addition, thanks to the ECO Vehicle project in Spain to replace batteries, the number of providers specializing in this type of malfunction has increased. Thus, in 2023, servicing was carried out on 264,660 vehicles that wouldn't start due to malfunctioning batteries, thus avoiding future breakdowns for this reason.
• Providers: under ISO 14064 and with a scope limited to 15 countries, we began to consolidate information and verify the calculation process regarding the mobility of providers with the most carbon intensity to incorporate their carbon footprint into the Group's GHG emissions inventory in the short term: roadside assistance, use of rental vehicles, taxi/PSV providers, appraiser and home repair personnel travel, travel of external personnel to the Company's own facilities.

For more information on environmental performance indicators, please see 8.2 Notes on additional information / Note 8. Environmental indicators, page 240

6.2.5. Water management

Fresh water is a limited resource and using it efficiently has become an obligation for companies, especially in countries and areas experiencing water stress.

The Environmental Footprint Plan establishes the following saving actions:

Reduction in consumption of water	Baseline (2019)	Performance 2021	Performance 2022	Performance 2023	Goal 2024	Goal 2030
3 m of water acquired	711795	585782	680777	614811	620079	540083
Percentage reduction with respect to 2019 baseline		-19%	-4%	-14%	-13%	-24%

Corporate Environmental Footprint Plan 2021-2030: Water management

Water management indicators

• In 2023, water consumption was reduced by 96,984 m³ compared to 2019, representing a 14% reduction and exceeding the 2023 targets of a 6% decrease and 25,008 m³ .
• In many countries where the Group operates, technical actions have been carried out aimed at achieving a reduction in water consumption. For example, the installation of proximity sensors in taps at the new headquarters building in Peru, installation of equipment to reduce pressure or shut off water in taps and toilets in Argentina, Mexico, Portugal, Paraguay and Venezuela, the installation of purifiers for water treatment. wastewater for irrigation of green areas in Mexico and new headquarters in Peru, control of leaks and open taps in Panama and replacement of bottled water with the installation of water drums with water filters in Nicaragua and Venezuela.
• Awareness-raising campaigns to achieve a more efficient and responsible use of sanitary water in the following countries: Argentina, Chile, Costa Rica, Honduras, Peru, Puerto Rico, El Salvador and Uruguay.

For more information on environmental performance indicators, please see 8.2 Notes on additional information / Note 8. Environmental indicators, page 240

6.2.6. Circular Economy

The transition to a circular economy is a major global challenge, and is one that MAPFRE has been working since 2019, with the aim of developing plans that address this model from an internal management perspective, emphasizing:

• Promotion of the responsible consumption of resources.
• Reduced waste generation, increasing reuse, recycling, reducing landfill waste, and taking action to combat food waste.
• Contracting of waste management companies with business models that align with the principles of circularity, gradually adapting to the zero-waste management model.
• Promoting participation in projects related to the circular economy.
• Development of sustainable business models.

One example of its integration into business is CESVIMAP, MAPFRE's Road Safety and Experimentation Center, a world-renowned technology center in the design, insurance, use, maintenance, repair, and recycling of vehicles and other mobility solutions for goods and people.

CESVIrecambios has acquired a cardboard shredder to recycle cardboard containers and convert them into padding material that will be used as protective and filling material when sending parts. In addition to reducing the material consumption, reducing both the cost of their production and the cost involved, the customer receives the parts they have purchased with the highest quality and will appreciate our efforts to convert their purchase into a more sustainable experience. This initiative represents further progress in our commitment to the circular economy, by recycling part of our activity's waste and through our increased commitment to sustainability and the environment every day.

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

CESVIMAP is also conducting the Second Life project, funded by CDTI funds, which aims to identify and then classify the status and usefulness of used electric vehicle battery modules, with the aim of reusing still-viable modules in other areas. In 2023, a CESVIrecambios self-consumption photovoltaic plant was installed, which stores surplus energy generated in used batteries.

CESVIMAP also participates in the EU subsidized BATRAW project, which promotes recycling of electric vehicle batteries. They want to recover minerals such as lithium, manganese, nickel and cobalt, together with high-quality graphite, scarce materials in the European Union.

Another project planned for the 2022-2024 period is the Yo Reparo (I Repair) training plan for workshops, tow truck drivers and appraisers in the USA, Brazil and Spain on the environmental impact of their activity and methodologies for repairing plastic and automobile parts as an alternative replacing them and generating more waste. Currently, 3,017 people have been trained in Spain, 1,085 in Brazil and 89 in USA.

The Corporate Environmental Footprint Plan 2021-2030 targets the treatment of 90% of waste generated in the Group's operations worldwide by 2030.

	Corporate Environmental Footprint Plan 2021-2030: Circular economy
--	--------------------------------------------------------------------

Reduction in waste	Baseline (2019)	Performance 2021	Performance 2022	Performance 2023	Goal 2024	Goal 2030
Percentage of waste treated	73%	95%	93%	92%	83%	90%

In addition, expansion of the zero waste model from the corporate headquarters to other headquarters in Spain, Mexico, Brazil, and Puerto Rico is planned by 2024.

Circular economy indicators

• The Zero Waste certification (AENOR Regulation) is maintained at the Company's complex in Majadahonda (Madrid, Spain), where more than 98% of the waste generated has been salvaged.
• For the first year, the Monte del Pilar University Campus (Madrid, Spain) has received Zero Waste accreditation and the model has been implemented in the MAPFRE headquarters building in Mexico.
• Adherence to the Circular Economy Pact is maintained.
• 3,567 tons of waste were managed globally, of which 3,266 tons underwent treatment processes: recovery, recycling, or energy production, 92% of the total.
• The consumption of 276 tons of paper has been avoided thanks to the biometric electronic signature, avoiding emissions of 251.75 tons of tCO2e in Spain and Portugal
• 23% of the total computer equipment managed in Spain has been reconditioned for reuse, thereby avoiding 108 tCO2e. Reuse was also boosted through the donation of 14,550.62kg of decommissioned IT equipment across the Group.
• CESVIMAP recovered 46,339 parts for reuse after processing 1,887 damaged vehicles in Spain and CESVIAUTO Argentina recovered 11,133 parts after processing 3,448 vehicles.
• CESVIMAP won the 5th BASF Award for Best Practice in the Circular Economy, in the SME category, receiving the award as the best sustainable mobility project at the 2023 eMobility Expo World Congress, recognizing the BEV battery recovery project for a second life as energy storage systems.
• Work continues on the Plastic-Free MAPFRE and ECORAEE projects, employee awareness programs and the Zero Waste Plan. We would like to highlight the Think then Recycle Campaign in Spain to promote waste segregation and prevent food waste.
• In Spain, work continues on the development of the Virtual Forest MAPFRE initiative, as a way to

raise awareness among employees of the consumption of paper, toner or energy from the printers in their workplace, territorial management and their personal use. The responsible document printing management project has reduced paper consumption by 56% since 2019.

• Participation in www.greenweekend.org and www.circularweekend.org, events that promote entrepreneurship and sustainability.

For more information on environmental performance indicators, please see 8.2 Notes on additional information / Note 8. Environmental indicators, page 240

6.2.7. Green procurement

Progress continues the acquisition of products and services with environmental criteria based on general evaluation criteria that apply to all services, with specific evaluation criteria for those activities identified with the greatest environmental impact during their life cycle and categorized as priorities¹⁶ .

Its implementation has been defined as a target in 2024 for MAPFRE in Spain and 2030 for the rest of the Group

To achieve this, actions have been defined as targets for 2024 for MAPFRE in Spain and 2030 for the rest of the Group.

Green procurement indicators

• Production launch of the SAP ARIBA.

2021: Spain

2022: Italy, Peru and Portugal.

2023: Brazil, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and the Dominican Republic.

• The implementation of the process for all categories was commenced in Spain over the course of 2023.
• 5 tenders
• €10,689,922.18 in billing.

6.2.8. Natural Capital management and biodiversity preservation

The UN Conference on Biological Diversity (COP 15) held in 2022 adopted the Kunming-Montreal Global Framework for Natural Capital, with the aim of addressing biodiversity loss, restoring ecosystems and protecting the rights of indigenous peoples, as well as establishing specific measures to halt and reverse the nature loss, including protecting 30% of the planet and 30% of degraded ecosystems by 2030.

This framework is considered the equivalent in terms of nature to the Paris Agreement on Climate Change and maintains Vision 2050 of Living in Harmony with Nature.

Although MAPFRE's work centers are not located in spaces classified as protected or high diversity, and are not a material aspect for the Company, MAPFRE understands that the development of its activity depends on and impacts natural capital, which includes both biodiversity and the services provided by ecosystems, as well as natural resources (water, energy, fuels, etc.) and is also key in the fight against climate change.

¹⁶ The following services are defined as priority categories: cafeteria and catering services, moving/messenger services, events, landscaping, shuttle buses and transfer services, printing equipment, cleaning, furniture and facility maintenance.

As a starting point for defining objectives and goals that contribute to the recovery of nature, we have quantified the impact of our direct operation on biodiversity in Spain and Portugal with the Global Biodiversity Score (GBS) measurement tool that evaluates the integrity of biodiversity lost or gained in the area impacted by the company and measured in MSA.km2 (Mean Species Abundance).

This year, the 2019 impact, established as the baseline on environmental aspects, and the 2022 impact, have been measured to analyze the evolution of static impacts and to introduce the corresponding dynamic impacts.

In addition, this year we updated the Natural Capital section of the corporate website (https:// www.mapfre.com/en/sustainability/environment/natural-capital/), incorporating the projects MAPFRE carries out in this area.

Natural capital and biodiversity preservation indicators

• Mean Species Abundance (MSA): 1,046km² in Spain and 0.03km² in Portugal
• Reforestation, with the planting of 7,807 trees in 10 countries.
• Cleaning of natural spaces with the collection of 11,080 kilograms of trash in 14 countries.
• Habitat preservation in 3 countries.
• Species preservation in El Salvador with the release of 75 turtles into the wild.

6.3. Corporate strategy for offsetting greenhouse gas emissions

The Corporate Environmental Footprint Plan 2021-2030 is complemented by the corporate Greenhouse Gas Compensation strategy.

Accordingly, MAPFRE's carbon footprint in Spain and Portugal has been offset through reforestation, avoided deforestation and restoration projects. Offsetting projects are selected according to criteria that encourage biodiversity recovery and ensure ecosystem services and natural capital, going beyond the creation of carbon sinks.

Details of carbon credits, scope, quality and objectives of offsetting projects in which the company participates are published on the corporate website (https://www.mapfre.com/en/sustainability/ environment/natural-capital/).

7 COMMITTED TO GOOD GOVERNANCE AND TRANSPARENCY

7.1 Our principles: due diligence, control and compliance

MAPFRE's business conduct pillars are the Group's Institutional, Business, and Organizational Principles. These principles are embedded in the company through its core values (solvency, integrity, service, innovation and a multi-cultural and diverse team) and implemented through adherence to its international and local commitments.

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 expected of all persons who work for or collaborate with MAPFRE.

MAPFRE also makes the policies approved by the Board of Directors available to all stakeholders on its website (https://www.mapfre.com/en/corporate-governance/), defining, where appropriate, the intergovernmental instruments to which the commitments contained therein refer.

There follows a graphical representation of our business conduct and ethical behavior model.

7.1.1. Due diligence

Based on the OECD Guidelines for Multinational Corporations, MAPFRE aims to avoid and address the negative impacts related to workers (5.1. Developing our people, page 90), customers (5.3. We protect our customers, page 126), the environment (6. Committed to the environment, page 151), human rights and other business conduct related to corporate governance and the fight against corruption in all its forms,

The company approaches due diligence regarding the potential negative impacts associated with its activities, its supply chains (5.2.3. Sustainable provider management, page 121) and other commercial relationships (4.5. Our business and sustainability, page 75).

7.1.1.1. Due diligence in human rights

The Human Rights Policy anticipates the implementation of due diligence processes in this area. In applying the precautionary principle, MAPFRE has different risk prevention and assessment mechanisms in place related to the violation of fundamental rights deriving from its activity along the value chain.

To gather information and concerns about negative human rights impacts and risks, MAPFRE makes consultation channels available for the holders of affected and potentially affected rights, including workers, their legal representatives and unions. These channels are accessible and take into account possible barriers to effective participation of the interested parties.

The following chart outlines the main risk prevention and assessment mechanisms that help prevent the violation of fundamental rights in business and operations areas.

• Specific email addresses and contact telephone numbers
• Self-service
• Corporate and country-specific website
• Corporate Intranet
• People app
• 360º performance evaluation
• Representation and participation bodies
• Regular meetings
• Conferences
• Materiality surveys
• Other surveys and polls
• Specific whistleblower channels
• and email addresses
• Generic and specific magazines and
• newsletters for the stakeholder
• Social networks

Employees Shareholders, investors and partners

• Email addresses and telephone numbers for specific contacts
• Self-service
• Corporate website
• Specific online spaces for
• these stakeholders
• Specific app
• Regular meetings
• Conferences
• Social networks

• Specific email addresses and contact telephone numbers

• Customer-specific websites • Network of offices, agents and
• intermediaries
• Self-service
• Specific apps for customers
• Materiality surveys
• Other surveys and polls
• Whistleblower and complaint channels
• and email addresses
• Generic and specific magazines and
• newsletters for these stakeholders
• Social networks

Providers Society

• Specific email addresses
• Specific contact telephone numbers
• Specific provider and
• and work group supervisors
• Specific online tools and portals • Specific app for this stakeholder
• Materiality survey • Other surveys and polls
• Social networks

Customers and insured parties Distributors, intermediaries and collaborators

• Email addresses and telephone numbers for specific contacts

• Specific online tools and portals
• Self-service
• Meetings and video conferences
• Materiality survey
• Generic and specific magazines and
• newsletters for the stakeholder
• Social networks

• Email addresses and telephone numbers
• of public and generic contacts
• Office network
• Website
• Generic apps
• Materiality survey • Other surveys and polls
• Social networks

The following chart outlines the main risk prevention and assessment mechanisms that help prevent

the violation of fundamental rights in business and operations areas.

To learn about other measures taken to ensure respect for human rights, please refer to 8.2. Notes on additional information / Note 9. Principles of the Global Compact and prevention and compliance measures in human rights , page 245

Internal ESG evaluation model

In decision making, consider:

• A company's ESG risk exposure.
• Exposure to ESG risk in the countries and sectors in which the company has been exposed to.
• Reputational risk analysis. UNDERWRITING INVESTMENTS

Internal control mechanisms

Control and avoid:

• Discriminatory practices throughout the employment relationship.
• Child, forced or compulsory labor.
• Effective respect for freedom of association and collective bargaining: 51% of MAPFRE's global workforce is represented by the workers' legal representatives.
• 57 collective bargaining agreements in force.

WORKING PEOPLE

PROVIDERS AND INTERMEDIARIES

ESG approval process

Signing of specific clauses related to expected behaviors

Raising awareness of MAPFRE's policies

Specific questionnaire:

• Occupational safety and health considerations for workers.
• Human Rights.
• Environmental practices and penalties.
• Inclusion, diversity and nondiscrimination.

ESG analysis framework

Periodically reviewed to incorporate best practices.

Qualified Socially Responsible Investment (SRI) working group.

Investment Risk Committee.

Regularly reviews the composition of portfolios, their ESG assessment and any disputes that may arise based on MAPFRE's SRI Framework.

7.1.1.2. Criminal Risk Prevention Model

The Criminal Risk Prevention Model identifies and assesses the crimes included in the penal code that may impact MAPFRE in terms of exposure to risk and impact (monetary and non-monetary penalties, reputational damage and other financial losses). Likewise, the existing controls are identified and evaluated to prevent the aforementioned crimes from occurring along the value chain.

This Model, which acts as a general reference framework for the Group's insurance companies, was revised in 2023 to include the changes deriving from past experience, best market practices and the most recent regulatory amendments introduced in criminal matters. It also includes references to the new sustainability approach MAPFRE has adopted and to the forecasts included in the Company's Sustainability Plan 2022-2024.

Corporate Compliance chairs the Criminal Risks Committee, enabling the company to react appropriately to the possible materialization of a criminal risk.

Under the framework of the Criminal Risk Prevention Model, no incidents or cases of significant regulatory noncompliance occurred in 2023, nor were any penalties received or paid related to criminal risk prevention.

7.1.1.3. Consultation and whistleblower channels

MAPFRE facilitates all its stakeholders with access to the query and whistleblower channels associated with the Group's pillars of ethical behavior, in order to prevent, mitigate or remediate possible adverse impacts.

Internal whistleblowing system

In 2023, MAPFRE implemented the Internal Whistleblower System established in Directive (EU) 2019/1937 of the European Parliament and the Council of October 23, 2019 on the protection of persons reporting infractions of Union law.

To that end, the Board of Directors of MAPFRE S.A. approved the MAPFRE Group's Corporate Policy on the Internal System for Whistleblower Complaints of Certain Breaches of European Union law or National Law of Member States and the Management Procedure in MAPFRE Group Companies in Spain for Whistleblower Complaints for certain breaches of European Union law or national law of Member States.

The aforementioned Corporate Policy applies directly and is of mandatory compliance for all MAPFRE Group companies domiciled in the European Union, whose respective administrative bodies have been informed if its content, and who shall adopt the necessary support and protection measures to protect whistleblowers against all forms of and attempts at retaliation.

Corporate Compliance has also been instructed to oversee the MAPFRE S.A. Internal Whistleblower System.

During fiscal 2023, a single report/complaint was received through the internal whistleblowing system, which was deemed inadmissible given that it related to a matter deemed outside the scope of said channel.

External reporting channels

The Code of Conduct establishes different communication channels for the following groups: employees, managers and members of the Group companies' management bodies, as well as for providers, contractors and other people who maintain a professional relationship with MAPFRE, in addition to other stakeholders, to submit queries or ethical complaints, including those related to human rights.

To guarantee confidentiality, the secretary of the Ethics Committee receives queries and complaints directly, and it is possible to lodge complaints anonymously. The principles for processing and

resolving same are included in the Code of Ethics and Conduct itself, which also establishes the Committee's competence to hear them and propose the appropriate penalty for any breach of the code. These penalties correspond to the current disciplinary system and may involve the termination of the existing contractual relationship.

Additionally, the Company makes the Financial and Accounting Whistleblower Channel available to Group employees, as well as directors, shareholders, providers, contractors and subcontractors to confidentially and, optionally, anonymously inform the Audit and Compliance Committee of MAPFRE S.A. of potentially significant financial and accounting irregularities that are reported within the company or its Group. Its operating rules are published both on the corporate intranet and MAPFRE's website.

The Audit and Compliance Committee receives the complaints and reviews and resolves them by addressing each one as it deems appropriate. In order to perform its functions properly, it relies on assistance from General Counsel and the Corporate Internal Audit Area.

General Counsel issues an annual report for the Audit and Compliance Committee outlining the activities conducted through the channel and the final result of the complaints made.

7.1.2. Internal control system

MAPFRE has an Internal Control Policy in place, approved by the Board of Directors. The Group's Internal Control System involves tasks and actions present in all the organization's businesses and, accordingly, they are fully integrated into its organizational structure.

Due to its very nature, MAPFRE's Internal Control involves all personnel, regardless of their role; overall, they contribute to providing a reasonable assurance that established objectives will be reached, most notably related to:

• Operating objectives: Effectiveness and efficiency of operations, differentiating those which are internal from the insurance activity (mainly underwriting, claims, reinsurance, and investment) as well as supporting operations and functions (human resources, administration, finances, sales, legal, technology, etc.).
• Information objectives: Reliability (financial and non-financial, internal and external) of information regarding opportunity or transparency, among others.
• Compliance objectives: Compliance with applicable laws and regulations.

The MAPFRE S.A. Board of Directors is ultimately responsible for the Group's Internal Control System and defines the common framework for action in internal control.

The Internal Control System is integrated into the organizational structure under the three lines of defense model by assigning compliance responsibilities to internal control objectives in line with the model:

• A first line of defense comprising employees, management, and the business and supporting operating areas, which are responsible for maintaining effective control over the activities carried out as an inherent part of their day-to-day work. As such, they are the ones who assume the risks, and they are responsible for designing and applying the necessary control mechanisms to mitigate the risks associated with the processes they carry out to guarantee that the risks do not exceed the established limits.

The first-line areas have benchmark models and operational management models in place that detail the responsibilities assigned to them in the various risk control procedures as they pertain to the internal control dimension.

• A second line of defense is made up of the key Risk Management, Actuarial, and Compliance functions, as well as other assurance functions that oversee the functioning of the Internal Control System.
• A third line of defense, consisting of Internal Audit, performs independent assessments of the suitability and effectiveness of the Internal Control System and notifies of potential shortcomings as required to the parties responsible for applying corrective measures, including directors and the governing bodies, as appropriate.

[For more details on the Internal Control System, please see the Solvency and Financial Condition Report (SFCR) for MAPFRE S.A. and subsidiary companies, which is available on the corporate website: https://www.mapfre.com/en/solvency/.

7.1.2.1. Compliance measures

As an additional monitoring measure, MAPFRE's Corporate Compliance periodically assesses the degree of compliance with the commitments established in each of the policies in force.

• In 2023, the degree of compliance with the following policies was analyzed and assessed:
• a. Underwriting Policy
• a. Actuarial policy
• a. Technical provisions policy
• a. Compliance policy

The assessment was carried out in 40 insurance and reinsurance companies in 15 countries.

MAPFRE S.A. was granted AENOR certification for its Compliance Management System. This certification recognizes effective implementation of the international reference standard for regulatory compliance. With the Company's Compliance function having successfully cleared this audit process, MAPFRE S.A. became the first company in the insurance industry in Spain to obtain this recognition..

7.1.2.2. Internal audit procedures

The Internal Audit function is the risk management model's third line of defense and is tasked with providing an independent guarantee of the suitability and effectiveness of the Internal Control System, as well as other elements of the System of Governance.

For more information, please see 3.1 Integrated management model, page 44

To ensure its autonomy and governance, the MAPFRE Group's Corporate Internal Audit Area functionally reports to the Board of Directors of MAPFRE S.A. through the Audit and Compliance Committee and in particular, the Chairman and CEO. As such, Internal Audit, employing its own methodology, determines the most relevant work and recommendations to be reported to this Committee, as well as to other governing bodies.

In addition, the various managers of the Audit Services and Units Department (functionally and hierarchically) report to the Group Chief Internal Audit Officer to preserve their independence.

The MAPFRE Group's Corporate Internal Audit Area conducts audits focused on assessing the proper functioning of the main procedures followed by the Group's insurance and reinsurance companies, such as:

a. Compliance with internal and external regulations on the prevention of money laundering and

financing terrorism (PMLFT) that apply to MAPFRE companies. These audits are performed in the vast majority of MAPFRE companies under legal requirement in the country concerned. The weaknesses observed are reported to the most senior PMLFT supervisors of the corresponding company and, where applicable, the Group.

For more information, please see 7.2.3. MAPFRE's anti-corruption framework, page 177

b. At the technological level, the IT and Security Audit Service conducts Technology Providers Management audits on MAPFRE's most relevant technological processes, reviewing, among other items, contracts, clauses, service level agreements, penalties and compliance with the Group's Corporate Procurement Policy.

For more information, please see 5.2.3. Sustainable management of providers, page 121 and 7.3. We promote cybersecurity and protect data privacy, page 181

If weaknesses are observed during these audits, recommendations are issued, along with the corresponding action plans for remediation.

External reviews are conducted every five years, as established in the best practices of the profession. In 2021, an external Quality Assessment of MAPFRE's Internal Audit operations was carried out by the Institute of Internal Auditors (IAI) as an independent external reviewer. The overall assessment granted was "Generally Compliant," which is the highest rating available, concluding that MAPFRE's Internal Audit operations comply with the International Standards for the Professional Practice of Internal Audit and the Code of Ethics in its material aspects.

7.2. We safeguard ethical behavior

At MAPFRE, we know that what we do is important. So too is how we do it. A socially responsible company begins with ethical, personal and professional action by those of us who are part of it. The Code of Ethics and Conduct, the Human Rights Policy and the anti-corruption framework are the basis on which the measures that guide the conduct of the company, the people who work at MAPFRE and those who act on its behalf are developed.

7.2.1. Ethical conduct

Inspired by the Group's Institutional, Business and Organizational Principles, the Code of Ethics and Conduct reflects the corporate values and basic principles that should guide its people's actions, in both their everyday work and their relationships with other stakeholders. This code is public and available to all stakeholders on the MAPFRE website and to all employees on the corporate intranet.

To ensure its correct application, as well as the supervision and control of its compliance, MAPFRE has the following mechanisms in place:

• 1. An Ethics Committee, the composition, responsibilities and operating system of which are included in the code itself. Every year, this committee informs the MAPFRE S.A. Audit and Compliance Committee of the activity carried out during the year, including the action taken to promote the code as well as the committee's advisory and corrective measures.
• 1. Consultancy services and points of contact, through specific channels to make queries about the ethical behavior model as well as complaints about possible breaches thereof.
• 1. Evaluation of employee performance in relation to their behaviors and skills in both the personal and professional spheres, included in the 360º evaluation aligned with MAPFRE's Code of Ethics and Conduct.
• 1. A disciplinary system that, in the event of noncompliance, defines the corresponding penalties, including the termination of the existing contractual relationship.
• 1. A monitoring system that evaluates the degree of implementation of the controls associated with a series of behavioral principles and rules included in the Code of Ethics and Conduct in terms of the fight against corruption.

A total of 1,980 hours of training in this area were given in 2023 to 2,641 employees. A total of 82% of the workforce has been trained in this area over the last three years. A series of quick learning training impacts related to the code were also published on the MAPFRE People app throughout 2023.

7.2.1.1. Procedures initiated by MAPFRE in relation to work conduct contrary to the Code of Ethics and Conduct

MAPFRE does not exclude the possibility of initiating disciplinary proceedings in the event that an employment behavior contrary to current legislation is detected that also entails a breach of the principles contained in the Code of Ethics and Conduct.

During 2023, 34 disciplinary proceedings were initiated in line with the Work Regulations and/or the Code of Ethics and Conduct. As a result, dismissal proceedings were initiated against 20 people and in 12 other cases, sanctions were imposed. In one of the 34 cases, once investigated and closed, it was concluded that no violation of any principle of the applicable Code or labor laws occurred; and in another case, two people tendered their resignations voluntarily.

In addition to the 34 procedures, two cases of internal fraud were detected in Colombia with the involvement of three people who were dismissed after the corresponding investigation; and another two cases were registered in Spain, which involved the participation of three agents. Given that the parties involved in the cases in Spain had no employment relationship with the company, the agency contract still in force was terminated and the passive rights were terminated in cases where the minimum time for doing so had been met according to the contract.

7.2.1.2. Activity of the consultation and whistleblower channels pertaining to the Code of Ethics and Conduct

Over the course of 2023, the Ethics Committee registered a total of 61 complaints/grievances, of which 49 were not admitted for processing due to the fact they dealt with matters beyond the scope of the Code of Ethics and Conduct, while nine were processed and three are in the processing phase. One of these three derives from the Financial and Accounting Whistleblower Channel.

The nine complaints processed by the Ethics Committee in 2023 are described below:

• Four employee complaints in relation to alleged personal grievances of other employees contrary to the Code of Ethics and Conduct. The appropriate investigations were carried out, concluding that there was no violation of the Code of Ethics and Conduct in three of them. In the fourth, corrective measures were adopted.
• Three employee complaints for alleged discriminatory conduct, two of which related to the conduct of another employee and one referred to the conduct of the Company. The appropriate investigations were carried out and corrective measures were adopted in the first two, while in the third case, there were no circumstances that supported the existence of discrimination or lack of equality in the process referred to.
• One anonymous report for fraudulent conduct. The appropriate investigation was carried out, concluding that there was no violation of the Code of Ethics and Conduct.
• One complaint from an employee about the alleged violation by another employee of the duty of confidentiality of information. The appropriate investigation was carried out, concluding that there was no violation of the Code of Ethics and Conduct because it was not proven that the person reported had violated their duty of confidentiality.

7.2.2. Respect for human rights

MAPFRE recognizes the importance of human rights, which is why its protection is enshrined in the Group's internal regulations, approved at the highest level of the organization. The issue of human rights is expressly reflected in MAPFRE's institutional, organizational and business principles, in the Code of Ethics and Conduct, in the Sustainability Policy and in the Human Rights Policy itself.

These commitments are reinforced by the signing of various principles and adherence to a number of United Nations-led human rights initiatives: Global Compact and the Ten Guiding Principles; Principles for Sustainable Insurance (PSI); Principles of Responsible Investment (PRI); Women's Empowerment Principles (WEPs); and the Standards of Conduct for Business in relation to LGBTI rights.

Likewise, MAPFRE's commitments expressed in the Human Rights Policy are inspired by the principles and rights established in the main conventions of the International Labor Organization and the Declaration on Fundamental Principles and Rights at Work of said organization.

Among other behaviors, MAPFRE promotes globally a safe and healthy work environment both inside and outside the workplace, based on its Health and Well-being and Occupational Risk Prevention Policy. It also fosters respect for people's individuality, recognizing their heterogeneity and eliminating any discriminatory, exclusionary behavior through the Diversity and Equal Opportunities Policy. These policies prevent, among other behaviors, psychological and sexual harassment in the workplace.

In 2023, 22,940 Group employees participated in training courses on procedures related to the MAPFRE Human Rights Policy and the 10 Principles of the Global Compact. These training actions represent 494,774.42 hours. By the end of the year, 74 % of the workforce had completed one of the training actions.

7.2.2.1. Human rights across the value chain

MAPFRE has a provider approval process, in addition to underwriting and investment procedures that ensure compliance with corporate principles and human rights policies, when assessing and addressing all its operations.

Specifically with regard to freedom of association and collective bargaining, forced or compulsory child labor, as well as in the Rights of Indigenous Peoples, no operations or providers have been detected that could be regarded as jeopardizing or violating said rights.

Likewise, according to the aforementioned approval process, no providers or operations with significant negative social impacts have been identified.

Additionally, MAPFRE maintains its objective of extending its commitment to human rights along its value chain, including providers and intermediaries. Training in this area was provided in 2023 to 452 security providers, representing 90% of the total of this type of provider.

Fore more information, please see 5.2. We generate business for our providers, page 118 and 4.5. Our business and sustainability, page 75

Procedure for reports, grievances or complaints related to the Human Rights Policy

If a report, grievance or complaint is received, the procedure established in the Code of Ethics and Conduct is followed, meaning it is processed by the Ethics Committee, which comprises the individuals who constitute the General Counsel of the MAPFRE Group, the general management of People and Organization and three other senior management or representative positions in the Group. In 2023, three complaints, grievances or complaints of discrimination described in 7.2.1.2. Activity of the consultation and whistleblower channel pertaining to the Code of Ethics and Conduct were received.

7.2.2.2. Protection of employees from psychological and sexual harassment in the workplace

MAPFRE rejects any show 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.

MAPFRE has a protocol in place for the prevention of harassment, applicable throughout the Group at a global level and accessible to all employees through the corporate intranet and the MAPFRE website.

In 2023, a new protocol for the prevention and treatment of harassment was approved to reinforce its content, make it more transparent and accessible and adapt it to international standards. This protocol applies all countries where MAPFRE operates.

Procedure for complaints related to psychological and sexual harassment

Violence and harassment in the workplace, including physical, psychological or sexual harm, constitute a breach or abuse of human rights. Given that special monitoring and protection is required, MAPFRE has a special procedure in place for complaints related to psychological and sexual harassment.

MAPFRE's Corporate Harassment Prevention and Treatment Protocol regulates the formal requirements that workers must follow when filing complaints and the procedure Human Resources must follow when processing them.

This procedure contemplates the possible measures to be applied in the event that harassment is confirmed to exist and measures for repairing the damage to the victim.

During this fiscal year, 25 harassment claims were recorded in the Group and processed using the established in-house procedures. Of the total complaints, 14 related to psychological harassment and 11 to sexual harassment. In addition, one complaint regarding discrimination was processed via this procedure.

The content of the complaints of moral harassment was such that eight of the cases related to minor labor conflicts in which the existence of conduct that could be classified as workplace harassment was not proven, while the other two cases are pending resolution. In the remaining four complaints, harassment was proven, with disciplinary dismissal implemented in three cases, while guidance and monitoring measures were adopted in the other case.

The 11 sexual harassment complaints processed involved inappropriate conduct by an employee against another employee. The existence of sexual harassment was confirmed in eight of the cases, with monitoring and awareness-raising measures adopted in one case and disciplinary dismissal in the other seven. Three allegations of sexual harassment could not be substantiated.

The procedures established in the protocol for the prevention of harassment were followed in all reported cases.

7.2.3. MAPFRE's anti-corruption framework

MAPFRE has zero tolerance for corruption and bribery. Therefore, in addition to the provisions of the Code of Ethics and Conduct, the company has an anti-corruption framework in place that comprises, among other aspects, the following policies and regulations: Criminal Risk Prevention Model, Anticorruption Policy, Prevention of money laundering and financing of terrorism and Prevention of fraud.

Throughout 2023, 17,372 employees underwent some training in the fight against corruption. By the end of the year, 56% of the active workforce had completed some training action related to this matter.

The accompanying tables detail those workers, actively employed as of December 31, trained in this matter, broken down by geographical area and by level of responsibility.

Region	No. of active people trained
CORPORATE AREAS AND CENTRAL SERVICES	495
IBERIA	6,430
LATAM SOUTH CENTER	4,571
BRAZIL	2,251
MEXICO	577
NORTH AMERICA	2,133
EMEA	527
REINSURANCE BUSINESS	388
Total	17,372

No. of active people trained	% of total
848	51.87 %
2,841	54.86 %
9,538	62.92 %
4,145	46.61 %
17,372	56.29 %

Board directors also receive continuous training on the matter, and in 2023, 100% of external board directors received training in this matter, having completed the specific course launched in 2022.

7.2.3.1. Prevention of all forms of corruption

The Anti-Corruption Policy and Criminal Risk Prevention Model articulate and implement MAPFRE's commitment to reject corruption in all its forms, including extortion and bribery.

The Anti-Corruption Policy sets out the performance standards and framework for preventing and detecting corrupt practices in the Group's activities in any of the countries where MAPFRE is present. The policy was approved by the Board of Directors in 2020 and all board directors are familiar with it. This policy is public and available to all stakeholders on the Group's website, and is applicable to both providers and intermediaries of MAPFRE in the performance of the activity they have been contracted to provide or carry out on behalf of the Company.

With regard to the Criminal Risk Prevention Model, MAPFRE's Corporate Compliance function analyzed 74 processes in which criminal risks may arise, which are detailed in the catalog of the MAPFRE S.A. Prevention Model, and has regularly identified and reviewed the validity of 258 controls present in these processes to avoid the materialization of these risks. Each company's compliance area regularly evaluates the validity of the existing controls for processes in which criminal risks associated with these practices have been identified.

In line with the financial services regulatory framework for customer acceptance, all MAPFRE

operations are evaluated in order to prevent and deter operations related to corrupt practices. Thus, the company's compliance areas regularly evaluate the validity of the existing controls for processes in which criminal risks associated with these practices have been identified.

Likewise, the MAPFRE Acquisitions Committee, which intervenes, directs and coordinates the work to be carried out in each acquisition or divestment process, is responsible for developing due diligence procedures for potential business partners (including matters of corruption and bribery) before closure of the operation.

In the spirit of the anti-corruption policy, in 2023, no direct or indirect contributions were made to political parties. Likewise, all MAPFRE Group collaborations, including contributions made for purposes of general interest, donations and/or events of exceptional public interest, were carried out in accordance with the Group's policy framework, with special attention to these standards, the Code of Ethics and Conduct as well as the Institutional, Business and Organizational Principles.

In 2023, 9,439.7 hours of training were given in subjects included in the corporate online course on crime prevention and bad practices, with a total of 4,732 participants. To date, 51% of MAPFRE employees have been trained in this area.

7.2.3.2. Prevention of money laundering and financing terrorism

MAPFRE has a set of rules in place for the prevention of money laundering and financing terrorism for companies resident in Spain who are required to report on such matters. These rules establish the policies and procedures implemented in Spain to prevent, hinder or report, as appropriate, operations related to money laundering and financing terrorism. In compliance with Spanish legislation, the Company applies prevention measures equivalent to those established by European law to its offices and subsidiaries overseas.

As a delegate body of the MAPFRE Board of Directors, the Audit and Compliance Committee is responsible for overseeing these rules and making proposals for their improvement. The Group also has a Committee for the Prevention of Money Laundering and Financing of Terrorism that analyzes any suspicious operations reported to the Executive Service by the various companies required to report in Spain and reviews all those initially assessed by the Internal Control Bodies and dismissed as suspicious in order to ratify the decision taken in this regard or, where appropriate, to make the decision to report them.

This committee appoints an independent outside expert to examine the internal control and communication procedures and bodies established for the prevention of money laundering.

The Committee also approves the annual training policy on this topic. In fiscal year 2023, 6,708 people participated in training related to the prevention of money laundering and the financing of terrorism. A total of 12,597.45 hours have been dedicated to training in this area.

7.2.3.3. Fraud prevention

MAPFRE is committed to protecting its assets and guaranteeing the rights of its stakeholders, in particular against criminal threats stemming from a complete absence of ethics and best business practices that seek to undermine the Company or extract illegitimate profits from it, all at the expense of the Company or its stakeholders.

Since 2016, MAPFRE has had an operational model in place to combat fraud that includes the definition of the necessary structures and optimal functions, the design of specific processes and procedures for this matter, the definition of policies and business regulations, as well as the design of the indicators map (both operational and risk). In addition, in 2019, the Executive Committee defined

and approved the company's Anti-Fraud Policy, in which MAPFRE's levels of protection against fraud and the areas responsible for those levels were detailed.

Also, the Group has developed a corporate anti-fraud technological platform for the detection, prevention and analysis of fraud in different business and support processes.

7.2.3.4. Financial and Accounting Whistleblower channel

During the 2023 fiscal year, a total of 16 reports/complaints were received through the Financial and Accounting Whistleblower Channel, 15 of which were dismissed on the grounds that they dealt with matters absolutely unrelated to the MAPFRE Group's financial and accounting whistleblower channel, while one report of wrongdoing, related to fraudulent behavior, was admitted for processing.

7.3. We promote cybersecurity and protect data privacy

MAPFRE treats guaranteeing the security, privacy, confidentiality, integrity, availability and protection of the data it has access to in the exercise of its activity as an absolute priority and maintains an unwavering commitment in this regard. This includes the Company's customers, collaborators, employees and other stakeholders. We make good on this objective proactively, not only to comply with the applicable regulations but, above all, as due recognition of the trust that all these groups place in our Company.

This objective is integrated into our business procedures and the company's transformation processes. This commitment is demonstrated by the increase of more than 10% in the specific cybersecurity, privacy and business continuity budget for the MAPFRE Group in 2023 as against 2022. We anticipate an additional increase of more than 4% for the 2024 budget over fiscal 2023.

The Corporate Security and Privacy Policy is implemented through a set of rules, standards and procedures that make up the security regulatory body, accessible to all employees through the company's global intranet. MAPFRE also has a security organization comprised of all manner of teams, means and resources intended to protect the tangible and intangible assets of the MAPFRE Group, structured into different levels of responsibility:

• MAPFRE Executive Committee: this body, acting under mandate from the Board of Directors, directly supervises the management of the business units and corporate areas and guarantees the coordinated action of these units, materializing the commitment of senior management and supporting the corporate security function.
• Corporate Security, Crisis and Resilience Committee: the most senior security-related management body of the organization, this committee ensures that the activity of the corporate security and privacy function is governed by the business objectives and needs. This body also assumes field management and control of business continuity and crisis management. Members of this Committee include the Third Vice Chairman of the MAPFRE Board of Directors, the Chief Financial Officer (a member of the Board of Directors) and the General Counsel of the MAPFRE Group (Secretary of the Board of Directors), as well as the most senior managers of the insurance units (Iberia, LATAM, North America and EMEA) and of the main corporate areas (Operations Transformation, People and Organization, and Technology). This Committee meets at least twice a year, having approved the adoption a quarterly schedule in 2023, as well as the updating of its members for 2024 in order to adapt to the new organizational structure of the Group.

The Corporate Security Division (CSD) is the global management, planning and execution body of MAPFRE's security and privacy function. Part of the Corporate Operational Transformation Area, the CSD is led by the global CSO and also has supervisors (local CSOs) and structures in the different Group companies. The Global CSO (Chief Security Officer) is responsible for security duties (including cybersecurity, privacy and operational resilience) in the MAPFRE Group.

Security risk management is also integrated into the MAPFRE Group's risk management system,

forming part of the information periodically reported to the Group's Risk and Sustainability Committee.

The MAPFRE Group articulates its approach to security, cybersecurity, and data privacy in a series of strategic lines, including: security starting with design; protection of information when it is collected, transmitted, stored, or processed; taking diligent action when establishing preventive measures and detecting and responding to cyberattacks or instances of business interruption. (For more information on strategic lines and measures, see chapter 8.2 Supplemental Information Notes - Note 10. Cybersecurity and business continuity, page 249).

The adequate awareness and training of Group employees is an essential element in protecting the information handled and stored by MAPFRE. In this regard, in the last three years, a total of 107,945 hours have been allocated to training in cybersecurity and data privacy. A total of 30,537 MAPFRE employees received training on this matter between 2021 and 2023. At the close of the year, 99% of the workforce had received training in this area.

It should be noted that in 2023, as part of the Training and Qualification Plan in this topic, the second season of the MAPFRE Firewall Mindset campaign, #CybersecurityCulture, was launched with 6,277 employees enrolled. There are already 19,332 cyber agents (employees) who have completed the first campaign (63% of the Group's total employees).

Also noteworthy in this area were the specific training programs for IT personnel. Almost 1,600 professionals in the Group's IT field have completed the Essential Cybersecurity Course and the specific awareness-raising sessions for Senior Management and the Group's External Directors.

The effectiveness of the training and awareness actions carried out have been verified through cyberexercises completed on a regular and systematic basis to assess employee behavior in the face of the most common cyberattacks. In 2023, employees performed adequately in the related exercises in more than 97% of cases.

7.3.1. Cybersecurity

To meet the established objectives, MAPFRE's Corporate Security Division has advanced capabilities in place related to boosting the resilience of the Company's digital operations. These capabilities include:

• a. Highly specialized and accredited personnel (MAPFRE holds a total of 300 personal certifications in cybersecurity and privacy, with a total of 125 certified employees).
• b. Specific monitoring, detection, and protection technologies covering security incidents that have been integrated into the corporate technology platform.
• c. Tools, methodologies and specialists dedicated to continuously reviewing and assessing the company's level of cybersecurity, covering all assets and actors involved (information systems, people, etc.) and identifying deficiencies and lack of control early.
• d. A General Control Center (CGC-CERT), integrated into the FIRST network and the CSIRT.es group, that receives alerts of threats from different organizations, similar centers and specialized providers and carries out monitoring, detection and response activities against cyberattacks under a 24/7 operation model. It also holds ISO 27001, 9001 and 22301 certification.
• e. Systematically updated and trained crisis management and business continuity plans. Additionally, MAPFRE is in the process of certifying its most relevant business continuity plans under the ISO 22301 standard, with 68.7% of premiums under certified business continuity plans.
• f. Obtaining added value in business terms through actions such as process digitalization using

electronic signature capabilities or the fight against fraud.

During 2023, the Group's Cyber Resilience Plan (CRP) continued to be implemented. This plan coordinates MAPFRE's progress in cybersecurity, privacy, data protection and digital operational resilience. At the close of 2023, the CRP was 82.8% rolled out, in line with forecasts. Notable during the fiscal year were actions related to improving the Global SOC's detection and response capabilities, which have increased the effectiveness of 24/7 coverage in the management of Cyber-Incidents, as well as using advanced cyber intelligence services and joining networks to exchange information on cyberattacks. Other relevant action taken included the selection and acquisition of an automated CyberAttack Simulation solution (BAS, Breach and Attack Simulation), the eradication of unsafe authentication mechanisms and the strengthening of the critical systems shield.

The action carried out has boosted MAPFRE's cyber resilience capabilities, and it obtained a score of 4.7 out of 5 according to the CRII (Cyber Resilience Improvement Indicator) in a study by the Spanish National Center for the Protection of Critical Infrastructures (Centro Nacional de Protección de Infraestructuras Críticas, CNPIC), 0.4 above the average for the finance sector and 1.4 points above the average of all participants (97 in 2023).

Meanwhile, work was carried out in 2023 to adapt the Group's companies to the European Parliament and Council Regulation on Digital Operational Resilience in the financial sector (DORA). These tasks are articulated through a DORA Adaptation Plan, which features 23 lines of action in which all the areas of the Company affected by these regulations participate.

The capabilities deployed through the cited plans will be integrated into the corporate security model, based on risk management and the comprehensive protection of tangible and intangible assets, establishing protection measures for all elements that interact with them (people, information systems, facilities and processes).

(For more information on cybersecurity strategy and management, please see 8.2. Notes on additional information / Note 10. Cybersecurity and business continuity, and the detailed document MAPFRE Security, available at https://www.mapfre.com/media/seguridad-mapfre/ security-mapfre.pdf.)

7.3.2. Data privacy

Guaranteeing the privacy and protection of the personal data we have access to when conducting our operations is an absolute priority for MAPFRE. This must be done proactively, not only to comply with applicable regulations, but also in return for the trust that clients, providers, collaborators, employees, and other stakeholders place in MAPFRE.

For more information, please see 8.2. Notes on additional informationion / Note 11. Prevention and compliance measures in Data privacy, page 250

In 2023, work was done to automate and optimize the processes associated with compliance with the different legislation in force in this area, to enable a better response to requirements and to minimize human errors.

In addition, progress has been made in the process of approving binding corporate regulations (BCRs) that permit certification to regulators and third parties that MAPFRE offers a homogeneous level of protection of its customers' data, regardless of the country in which they are stored and the level of protection required by its authorities, thereby facilitating both international data transfers between Group companies and certification of compliance by with third parties with the GDPR in MAPFRE companies located in countries outside the European Union.

Thus, after passing the first filter of the designated Leading Authority for the process (Spanish Data Protection Agency, AEPD), we also passed the second filter of the designated Brokerage Control

Authorities (Garante per la Protezione dei Dati Personali, Italian GPDP and Data Protection Authority, Irish Data Protection Commission). Once express agreement was obtained from these co-reviewing authorities, the AEPD launched the cooperation phase, circulating it to the other EU supervisory authorities, before sending it to the European Data Protection Committee, which, after analyzing it, will proceed to issue its final opinion.

Furthermore, the Artificial Intelligence working group created at the end of 2022 to raise issues related to ethics and data protection, process streamlining, decision automation and improved customer experience, remained active throughout 2023 to ensure the ethical and effective use of data. As a result of this working group's activity, a Guide on the Use of Artificial Intelligence Systems has been prepared to establish the guidelines and measures required to mitigate the risks associated with use of this type of technology and, in turn, adapt to the applicable regulation in this area in a timely manner.

MAPFRE privacy experts continue to form part of specific multinational work groups, such as the Digital Transformation Working Group - GDPR of the Pan-European Insurance Forum (PEIF) and the AI Working Group - of the Data Privacy Institute (DPI). Also, they have continued to collaborate in the Data Protection and Digitization and Innovation work groups of UNESPA, the Spanish association of insurance companies, addressing not only specific aspects of privacy but also the ethical use of data.

In relation to this last aspect, it should be noted that MAPFRE adheres to Fundación COTEC's Commitments to Privacy and Digital Ethics, a code of best practices that serves as a basis for designing policies and processes that ensures privacy and the ethical use of customer and user data.

Adherence to these 10 principles is "a demonstration of commitment and concern for privacy management from the perspective of ethical data management, which also fosters society's trust in data processing and the promotion of responsible use."

Additionally, in 2023 MAPFRE approved the Digital Ethics Framework, which includes, among other items, the principles the Group must follow so that its action in the digital field guarantees:

• Compliance with current legislation.
• Respect for and safeguarding of human rights.
• Social responsibility, equality and nondiscrimination.
• Respect for privacy and guarantee of the fundamental right to data protection.
• Employee well-being and training.

In compliance with the provisions of the European Data Protection Regulation (GDPR) and other regulations linked to the protection of personal data of countries outside the EU that MAPFRE operates in, seven potential incidents were reported in 2023 to the relevant Control Authorities, affecting 355,143 people, with two of them arising from provider security breaches.

It should also be noted that in 2023 MAPFRE Spain received two sanctions for non-compliance with the GDPR, arising from customer complaints. It should be noted that these sanctions refer to the processing of data of two customers and do not state that our customers' data are at risk, or that robust security measures are not in place, or that a breach of personal data occurred.

7.4. Responsible and transparent with taxation

Regarding the payment of taxes in the countries in which the Group does business, MAPFRE is fully aware of the importance of taxes, and how necessary they are in supporting public spending and social development in the countries it operates in, and this has been the case since its inception.

In 2023, net payment of income taxes was 395.4 million euros. This direct financial contribution to the public purse of the countries where MAPFRE operates is part of the Company's social footprint and its commitment to contribute to the sustainable development of its economies and societies. To see the relevant data by country, please see 8.2. Notes on additional information / Note 12. Main tax information by country, page 252.

The effective tax rate for each region and the reinsurance business is shown in the accompanying table.

Region/Unit	2023
IBERIA	18.0 %
BRAZIL	24.1 %
MEXICO	23.2 %
LATAM SOUTH-CENTER	15.1 %
NORTH AMERICA	29.2 %
EMEA	10.2 %
MAWDY	(22.6) %
GLOBAL RISKS	25.0 %
REINSURANCE	22.0 %
TOTAL MAPFRE GROUP	23.5 %

ACCRUED CORPORATE TAXES (Effective tax rate)¹⁷

7.4.1. Fiscal approach

In tax matters, MAPFRE's commitments and responsibilities are specified in the Group's Tax Policy, approved by the Board of Directors and available for inspection at www.mapfre.com.

Ethical action on tax matters involves compliance with current tax regulations in all territories in which MAPFRE conducts business, filing and paying the taxes due in each jurisdiction for the transactions conducted, and collaborating with the tax authorities under the terms established in the applicable regulations.

This ethical conduct in matters of taxation is aligned with the main business activity of MAPFRE, the insurance company, which plays a significant role as a driver of economic development and social cohesion; and which contributes to the care and protection of people and aids in the development of the business fabric of the countries in which it operates, looking at the present and with a view to the future.

This action is also in line with the general principles of action contained in the Corporate Sustainability

¹⁷ As per the local criteria applicable in each country

Policy, whose sustainability strategy is based, first, on finding a balance between the ESG challenges in the medium and long term, defining how they affect the company and its stakeholders; and, second, managing the company's impact on society and identifying opportunities for sustainable development, to create shared value with stakeholders and society in general.

7.4.2. Fiscal control and risk management

MAPFRE Group Tax Advisory designs and implements the internal procedures and control mechanisms necessary to ensure compliance with the principles of the corporate tax policy. It reports to the Board of Directors, through the General Counsel, on the tax implications of the issues submitted for its approval when they are relevant for decision-making purposes.

Among the non-delegable powers of the Board of Directors is the determination of the Company's general policies and strategies, and in particular: the risk identification, management and control policy, including tax risks, the supervision of internal information and control systems, and the determination of MAPFRE's tax strategy.

The different operations proposed by business are analyzed from a fiscal perspective, choosing the alternative that best suits the Group's needs with full respect for the local tax regulations of the jurisdiction in which the operation is intended to be executed.

All operations related to restructuring processes, alliances, mergers, acquisitions, and disposals of companies are reported on by MAPFRE Group Tax Advisory, and the results of the reports are shared with the Executive Committee or the Board of Directors, as appropriate.

Furthermore, operations carried out between related companies are duly documented in accordance with the requirements of the country concerned. Revenue from intra-group transactions with other tax jurisdictions can be found in 8.2. Notes on additional information / Note 12. Main tax information by country, page 252.

As far as operational risks are concerned, there is a reporting system in place that allows subsidiaries to report any tax incident in the country, as well as the progress of appeal procedures against tax assessments.

The events associated with these risks are registered and monitored continuously, and they are reported once a year to the Audit and Compliance Committee, as the delegate body of the Board for these purposes. The Company reports those tax provisions relating to different significant tax contingencies that the Group companies maintain with the respective national tax administrations. (See Note 6.13 Provisions for risks and expenses: Provision for taxes in the Consolidated Annual Accounts.)

As part of its commitment to transparency, MAPFRE reports the company's tax situation in the consolidated annual financial statements, including the components of income tax expenses and reconciliation of the recorded revenues with the expense of ongoing operations tax, deferred tax assets and liabilities, the breakdown of negative tax bases pending offset in the consolidated companies, as well as tax verifications (See Note 6.16 Fiscal Situation in the Consolidated Annual Accounts.)

7.4.3. Stakeholder participation

MAPFRE has participated in the Large Companies Forum since its creation in 2009. The Forum was established at the initiative of the Spanish State Tax Administration Agency with the aim of strengthening collaboration between companies and the state tax administration, based on the principles of transparency and mutual trust, through knowledge and the sharing of general problems that may arise in the application of the tax system.

In July 2010, the Plenary Session of the Large Companies Forum approved the Code of Best Tax Practices, to which MAPFRE adhered by agreement of its Board of Directors that same year. On an annual basis, the Audit and Compliance Committee reviews the fiscal policies followed during the year in compliance with the recommendations of this code. Reinforcing the best practices for business tax transparency contained in the Code, the Company presented its Fiscal Transparency Report corresponding to fiscal year 2021

Likewise, stakeholders can notify MAPFRE of their concerns regarding unethical or illegal conduct and the organization's integrity in relation to taxation through the Financial and Accounting Whistleblower Channel.

For more information, please see 7.2.3.4. Financial and Accounting Whistleblower channel, page 180

8.1. Basis of preparation and presentation of the report

8.1.1. About this report

This Report has been prepared in accordance with the Sustainability Reporting Standards de Global Reporting Initiative (GRI),for which an index of contents can be found in 8.3. GRI Content, page 255, and the recommendations of the information framework published by the International Council of the Integrated Report (IIRC).

The Report responds to the information requirements of EU Directive 2014/95 on the disclosure of non-financial information and diversity, as well as its respective transpositions in Germany, Spain, Italy and Portugal. 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. www.mapfre.com/en. In addition, it responds to the requirements of Regulation 2020/852 on Environmental Taxonomy.

The Consolidated Annual Accounts and Management Report have been taken into consideration. Such information is public and can be consulted in full on MAPFRE's corporate website (www.mapfre.com). This report includes information from January 1, 2023 to December 31, 2023.

The Report provides a comprehensive view of MAPFRE, its deployment, its business model, the challenges and risks it faces, and its social, environmental, economic and governance performance. It constitutes the approximation to the creation of economic and social value, which has allowed us to continue deepening and establish a greater relationship between the business model and the effect on the described resources.

This Report has been analyzed by the Audit and Compliance Committee and was duly ratified by the Board of Directors of MAPFRE S.A at its meeting of February 13, 2024.

8.1.1.1. Information scope

The Integrated Report corresponds to MAPFRE S.A. and its subsidiaries and investee companies, and the scope of information established in the reports used as the basis for their preparation have been taken into consideration.

The Alternative Performance Measures (APM) used in the Report, which correspond to those financial measures not defined or detailed in the framework of the applicable financial information, can be consulted on the company's website:

Some of the figures included in this Report have been rounded. Therefore, discrepancies in the tables between the totals and the amounts listed could arise due to such rounding.

8.1.1.2. Materiality, relevance and inclusivity

This Integrated Report includes all relevant information for MAPFRE and its stakeholders. In 2023, the methodology used in the materiality study was improved by incorporating the concept of financial materiality which, together with the concept of impact materiality - which we have been using in previous years - allows us to analyze the topics with greater precision and identify the most relevant ones for stakeholders and for MAPFRE. This study was conducted in line with the requirements of the GRI 3 standard and, in addition to allowing us to identify those aspects of great impact for MAPFRE and its stakeholders, it has served as the basis for the preparation of this report.

For more information, please see section 4.2. Materiality: Our priorities, page 61

The relevant issues in the environmental, social and governance spheres are covered by the material issues and the information contained in this Integrated Report.

Likewise, there are some relevant aspects that are not fully presented in the body of this Report. These are fully developed and included in:

• 8.2. Notes on additional information of this same Report.
• Consolidated Annual Accounts Report and Consolidated Management Report. (Published on the corporate website, at .)
• Fundación MAPFRE Annual Report. (Published on the organization's website, at .)
• Annual Corporate Governance Report. (Published on MAPFRE's corporate website, at .)
• Annual Report on Remuneration of Directors of public companies. (Published on MAPFRE's corporate website, at .)
• MAPFRE People and Organization Report 2023. (Published on MAPFRE's corporate website, at .)
• MAPFRE Group Task Force on Climate-related Financial Disclosures (TCFD) Report 2023. (Published on MAPFRE's corporate website, at )

8.1.1.3. Balance

The Report reflects the positive aspects of the organization's performance, and when the results have not reached the expectations that had been formulated, this circumstance is noted in the corresponding sections.

8.1.1.4. External verification

The qualitative and quantitative information of the indicators that make up MAPFRE's consolidated Non-Financial Information Statement responds to GRI standards and has been externally verified by the firm KPMG Asesores S.L. This verification has included the information for the annual year ended December 31, 2023 of the Company and subsidiaries of the MAPFRE Group that form part of its 2023 Consolidated Management Report.

At the end of this document, you may consult the Independent Verification Report of MAPFRE's 2023 Integrated Report that includes the Non-Financial Information Statement (EINF) of MAPFRE S.A. and dependent companies.

8.1.2. Response capacity

The Report, in addition to offering relevant information for the stakeholders with which MAPFRE interacts, responds to the observations transmitted by them throughout the year. However, people interested in consulting or supplementing the information provided in this document can contact MAPFRE through the following channels:

Corporate Sustainability: responsabilitysocial@mapfre.com

Corporate External Relations and Communication Area: comunicacion@mapfre.com

Environment department: disma.medioambiente@mapfre.com

Capital Markets and Analyst and Investor Relations Area: ir@mapfre.com

MAPFRE's corporate website: www.mapfre.com

8.2. Notes on additional information

Note 1. Emerging risks

The following table details emerging risks, the type and degree of impact, the prevention and mitigation measures in place, as well as the dimensions they impact on.

			Sustainability dimensions
Risk and context	Impact	Measures	Economic	Geo political	Environ mental	Social	Techno logical
Climate change Climate change risk is the risk arising from the long-term change in average weather patterns that have shaped the local, regional and global climates of the earth. This risk would manifest itself mainly in extreme weather events (tropical cyclones, floods, forest fires, etc.), in economic uncertainty due to various changes (regulatory, technological, social, etc.), in the transition toward a low-carbon economy and in environmental liability claims where climate change risks are not prevented, mitigated or disclosed. The risks deriving from climate change are divided into two broad categories: physical risks and transition risks.	As an insurer, the impacts have been identified in line with the categories of this type of risk: MEDIUM-HIGH - Physical risk: Increase in claim levels deriving from an increase in intensity and frequency of extreme events. MEDIUM -Transition risk (including regulatory, reputational and market aspects): decrease in revenue due to reduced demand for current products and services, with the need to adapt them to consumer preferences and new habits.	The incorporation of climate change into the decision-making of the business strategy. A detailed knowledge of the insured risks (such as their geolocation and the characteristics of their underlying assets), with the aim of underwriting the correct coverage and selection of catastrophic protection. Proper management and control of accumulations to optimize the use of capital. Maximum collaboration and transparency between the insured and the insurer to facilitate the best evaluation and pricing. Taking out reinsurance coverage.	x	x	x	x

			Sustainability dimensions
Risk and context	Impact	Measures	Economic	Geo political	Environ mental	Social	Techno logical
Products and services The high volatility and speed of change in the environment, in society and in the markets in which the company operates (aging, digitization, large cities, new regulations, conflicts, the appearance of new competitors, etc.) produce drastic changes in customer behavior that involve new requirements in insurance coverage.	MEDIUM-HIGH A reduction in portfolio with a consequent impact on earnings deriving from the inadequacy of products and services that do not meet the needs of customers. The entry into the market of large technology companies, as new competitors not subject to specific regulation, may negatively affect financial stability, which could encourage the undertaking of greater risks in order to compete in attracting customers.	Continuous monitoring of new customer trends, accelerating innovation processes, transformation of distribution channels for customer service and creation of alliances with startups and hubs. Monitoring of the behavior of insurtechs in the insurance industry and main markets in which the Group operates.		x		x	x
Instability and financial crises due to conflicts and scarcity of resources Aggravation and multiplication of conflicts between countries for the control of natural resources (raw materials) or vital for subsistence (drinking water), and an increase in authoritarianism and populism.	HIGH Corporate earnings may be subject to fluctuation as a result of oscillations in the financial markets the Company operates in, by changes in exposure to interest rates that may reduce sales of of certain products (Life, savings), the profitability of investments, as well as in the sufficiency of technical provisions and the increase in costs and the loss ratio. Additionally, regulatory changes deriving from conflicts can cause direct losses due to operating restrictions.	Identify the aspects that may affect the Group and the established strategy, implementing early warning and monitoring mechanisms. Monitor the main macroeconomic and financial variables, with special emphasis on their impact on the financial strength of the Group and the insurance industry.	x	x	x	x

Note 2. Material topics

Material topics encompass both negative impacts, posing actual or potential risks affecting stakeholders and MAPFRE, as well as positive impacts, bringing benefits to stakeholders and opportunities to MAPFRE.

The accompanying table outlines the primary positive and negative impacts identified during the Company's double materiality study. It also includes information on the policies, processes, governance, and action plans established to address each material topic, along with references to progress information included in this report.

Material		Type of	Impacted stakeholder (actual or
topic	Impact	impact	potential)	Policies / Governance / Process	Action plan	Progress
Adaptation of the business to climate change	Improved control of the risks associated with climate change by developing processes for measuring and mitigating them.	Positive	Employees, Customers and Financial Community	• Corporate Sustainability Policy • Environmental Policy • Investment Policy • Sustainability risk integration policy https:// www.mapfream.com/en/policies/ • Responsible Investment Framework • Underwriting Policy	Strategic Plan 2022–2024 Transformatio n Growth and profitability Sustainability Plan 2022–2024 Sustainable products Transparency	4.5 Our business and sustainability 6.1 Action strategy against climate change 6.2. Corporate Environmental Footprint Plan
Adaptation of the business to climate change	Increase in negative consequenc es due to the risk of climate change, particularly in the event of a passive approach or an inability to effectively control these effects.	Negative	Employees, Customers and Financial Community	• Corporate Sustainability Policy • Environmental Policy • Investment Policy • Sustainability risk integration policy https://www.mapfre.es/ media/politica-integracion.pdf • Responsible Investment Framework • Underwriting Policy	Strategic Plan 2022–2024 Transformatio n Growth and profitability Sustainability Plan 2022–2024 Sustainable products Transparency	4.5 Our business and sustainability 6.1 Action strategy against climate change 6.2. Corporate Environmental Footprint Plan
nnovation and digitalization I	Greater process efficiency and customer interaction with the incorporatio n of new technologie s.	Positive	Employees, Customers, Distributors and Providers	• Organizational and Management Bodies Policy of the Corporate Technology and Processes Area • Open Innovation Model • Regulations and procedure for proofs of concept and pilots for Strategic Innovation projects • Group Transformation and Innovation Committee	Strategic Plan 2022–2024 Transformatio n Efficiency and productivity Growth and profitability Sustainability Plan 2022–2024 Sustainable products and services Circular economy Inclusion	5.5. Innovation and digitalization in products and services, and processes

			Impacted stakeholder
Material topic	Impact	Type of impact	(actual or potential)	Policies / Governance / Process	Action plan	Progress
nnovation and digitalization I	Increased bias in automatic decision making due to the use of artificial intelligence	Negative	Employees, Customers and Society	• Organizational and Management Bodies Policy of the Corporate Technology and Processes Area • Open Innovation Model • Regulations and procedure for proofs of concept and pilots for Strategic Innovation projects • Group Transformation and Innovation Committee	Strategic Plan 2022–2024 Transformatio n Efficiency and productivity Growth and profitability Sustainability Plan 2022–2024 Sustainable products and services Circular economy Inclusion	5.5. Innovation and digitalization in products and services, and processes
Cybersecurity and privacy	Reinforced protection of privacy and responsible use of customer and employee data	Positive	Customers and Distributors	• Corporate Security and Privacy Policy https://www.mapfre.com/ media/accionistas/2015/ politicacorporativa-seguridad privada. PDF • MAPFRE Comprehensive Security Model https:// www.mapfre.com/media/ seguridad-mapfre/security mapfre.pdf • MAPFRE Data Governance Model: a reference framework that enables the organization to apply the necessary mechanisms to convert its data into a strategic asset, minimizing the risks of improper use of the same. Defined in the Corporate Data Governance Standard. • Corporate Security and Environment Committee • Corporate Privacy and Data Protection Committee • Crisis and Business Continuity Committee	Strategic Plan 2022–2024 Efficiency and productivity Transformatio n Sustainability Plan 2022–2024 *Transparency	7.3. We promote cybersecurity and protect data privacy
Cybersecurity and privacy	Increased risk of loss of personal data as a result of vulnerabiliti es in information security systems.	Negative	Employees, Customers and Distributors	• Corporate Security and Privacy Policy https://www.mapfre.com/ media/accionistas/2015/ politicacorporativa-seguridad privada. PDF • MAPFRE Comprehensive Security Model https:// www.mapfre.com/media/ seguridad-mapfre/security mapfre.pdf • MAPFRE Data Governance Model: a reference framework that enables the organization to apply the necessary mechanisms to convert its data into a strategic asset, minimizing the risks of improper use of the same. Defined in the Corporate Data Governance Standard. • Corporate Security and Environment Committee • Corporate Privacy and Data Protection Committee • Crisis and Business Continuity Committee	Strategic Plan 2022–2024 Efficiency and productivity Transformatio n Sustainability Plan 2022–2024 *Transparency	7.3. We promote cybersecurity and protect data privacy

Material topic	Impact	Type of impact	Impacted stakeholder (actual or potential)	Policies / Governance / Process	Action plan	Progress
Talent management	Professional growth through talent attraction and retention programs	Positive	Employees	• Corporate Sustainability Policy • Diversity and Equal Opportunities Policy • Promotion, Selection, and Mobility Policy • Respect for People Policy	Strategic Plan 2022–2024 Transformatio n Efficiency and productivity Growth and profitability Sustainability Plan 2022–2024 Employment *Inclusion	5.1. We develop our people
Talent management	Increase in turnover resulting from a noncompetit ive career plan and professional offer.	Negative	Employees	• Corporate Sustainability Policy • Diversity and Equal Opportunities Policy • Promotion, Selection, and Mobility Policy • Respect for People Policy	Strategic Plan 2022–2024 Transformatio n Efficiency and productivity Growth and profitability Sustainability Plan 2022–2024 Employment *Inclusion	5.1. We develop our people
Customer protection	Coverage of customer risk with an offer of products suited to their needs.	Positive	Customers	• Corporate Sustainability Policy • Group Solvency II Policy	Strategic Plan 2022–2024 *Transformatio n	5.3. We protect our customers 5.5. Innovation and digitalization in products and services, and processes
Customer protection	Greater exposure to assuming high costs by customers for not providing coverage or restricting access to them.	Negative	Customers	• Corporate Sustainability Policy • Group Solvency II Policy	Strategic Plan 2022–2024 *Transformatio n	5.3. We protect our customers 5.5. Innovation and digitalization in products and services, and processes
Sustainable investments	Increase in financing capital to companies that encourage the hiring of vulnerable groups.	Positive	Financial Community	•Corporate Sustainability Policy •Investment Policy •Sustainability Risk Integration Policy (https://www.mapfre.es/ media/politica-integracion.pdf) •Responsible Investment Framework •Environmental commitments in underwriting and investment (https://www.mapfre.com/media/ sustainability/environmental commitments-investment underwriting-plan-22-24.pdf) •MAPFRE AM Risk Committee	Strategic Plan 2022–2024 Transformatio n Growth and profitability Sustainability Plan 2022–2024 *Sustainable investment	4.5. Our business and sustainability

Material topic	Impact	Type of impact	Impacted stakeholder (actual or potential)	Policies / Governance / Process	Action plan	Progress
Sustainable investments	Increase in greenhouse gas emissions through investment in projects that do not take sustainabilit y into account.	Negative	Financial Community	•Corporate Sustainability Policy •Investment Policy •Sustainability Risk Integration Policy (https://www.mapfre.es/ media/politica-integracion.pdf) •Responsible Investment Framework •Environmental commitments in underwriting and investment (https://www.mapfre.com/media/ sustainability/environmental commitments-investment underwriting-plan-22-24.pdf) •MAPFRE AM Risk Committee	Strategic Plan 2022–2024 Transformatio n Growth and profitability Sustainability Plan 2022–2024 *Sustainable investment	4.5. Our business and sustainability
Sustainable products and services	Accelerating the transition to a sustainable economy by developing new products and services that meet new needs.	Positive	Customers	•Corporate Sustainability Policy •Responsible Investment Framework •Open Innovation Model •Sustainability Operating Committee •Global Business Committee •MAPFRE AM Risk Committee •M&A Committee •Group Transformation and Innovation Committee	Strategic Plan 2022–2024 Transformatio n Growth and profitability Sustainability Plan 2022–2024 Sustainable products and services Sustainable underwriting *Sustainable investment	4.5. Our business and sustainability
Sustainable products and services	The slowdown in the transition to a low emission economy driven by the low competitive ness of sustainable insurance products.	Negative	Clientes y Distribuidores	•Corporate Sustainability Policy •Responsible Investment Framework •Open Innovation Model •Sustainability Operating Committee •Global Business Committee •MAPFRE AM Risk Committee •M&A Committee •Group Transformation and Innovation Committee	Strategic Plan 2022–2024 Transformatio n Growth and profitability Sustainability Plan 2022–2024 Sustainable products and services Sustainable underwriting *Sustainable investment	4.5. Our business and sustainability

Note 3. Sustainable products

SUSTAINABLE PRODUCTS AND SERVICES: Investment

Some of the most relevant investment products and services in MAPFRE's countries and business units are presented in the accompanying table.

Inclusión Responsable fund	Equity fund that invests in companies especially committed to the inclusion of people with disabilities in their workforces. Included in the 2019 United Nations Global Compact report as an example of best practice, it combines the search for financial profitability with promoting improvement in society. The management team, in collaboration with the French partner La Financière Responsable (LFR), applies a methodology that is based on seven themes with 40 variables to invest in companies focused on the inclusion of people with disabilities. At the close of 2023, the fund had almost 42 million euros in assets.
Capital Responsable fund	This fund seeks to preserve capital without foregoing long-term growth and to this end, aims for a balanced portfolio of fixed income assets and European stocks (with 76% exposure to fixed income and 24% to equities). The objective is to favor those companies that have a strategy focused on monitoring ESG criteria, under the assumption that they provide a more appropriate risk-return profile. MAPFRE also has a pension plan that replicates this strategy. At the close of 2023, the fund had approximately 150 million euros in assets.
Multifondos Compromiso ESG fund	A MAPFRE Unit-Linked product where all the funds in the portfolio incorporate ESG criteria into their investment policies. In 2023, MAPFRE included two new investment options in this savings-investment insurance. These are the "Determined ESG Portfolio" and "Very Determined ESG Portfolio", so that clients

Other investment products:

Infrastructure:

MAPFRE and Abante, in developing their strategic alliance launched three years ago, launched an infrastructure fund of up to 300 million euros in 2020 through Macquarie, the Australian financial services group. In this regard, MAPFRE committed to providing an initial capital of 50 million according to the sustainability, social and governance (ESG) criteria, although this figure has increased to 103 million.

This fund of funds, which has aroused the interest of institutional and private banking investors and which has as its underlying several strategies of Macquarie Infrastructure and Real Assets (MIRA), offers investors an opportunity to access an asset type that allowed portfolio diversification in a low interest rate environment.

Sustainable investments:

The other pillar of the insurance group in alternative investments is the agreement reached with Iberdrola to jointly invest in renewable energy in Spain, through the promotion of an investment vehicle, managed by Kobus Partners. MAPFRE has a commitment of 220 million euros. This partnership involves the creation of a pioneering co-investment vehicle between an energy company and an insurance company.

To date, the Joint Venture has 298 MW in projects for the production of electric renewable energy from the energy company's asset portfolio. This agreement also provides for the incorporation of other operating assets, as well as new renewable energy development projects in photovoltaic and wind technology, and aims to reach 1,000 MW.

Likewise, within the framework of the diversification of alternative assets, the added objective of this partnership is for third-party institutional investors to be able to co-invest in this clean energy vehicle in which around 800 million euros will be invested together.

Sustainable Finance:

In addition, by making different investment products available that seek to have a positive impact on the environment and society, without foregoing profitability, and creating medium and long-term value for the shareholder, MAPFRE establishes sustainability factors in investment decisions. and, also in the Company's loans.

MAPFRE has two sustainable loans in place that, in addition to the company's credit rating, take the evolution of sustainability parameters, as accredited by an independent third party specializing in ESG matters, into account when calculating the interest rate to be paid on the loans.

SUSTAINABLE PRODUCTS AND SERVICES: Underwriting

The most relevant underwriting products and services¹⁸ in MAPFRE's countries and business units are illustrated in the accompany table.

SUSTAINABLE PRODUCTS AND SERVICES	No. of policies insured	Volume of written premiums
Environmental products and services	3,197,914	1,033,654,759.74
E - Low carbon agriculture	541,650	589,142,868.98
E - Based on vehicle usage (PAYD, PHYD, etc.)	8,164	13,001,739.74
E - Circular economy	1,829,028	21,814,594.14
E - Energy efficiency	3,336	2,073,766.50
E - Renewable energy	150,946	179,933,350.26
E - Prevent and/or repair damage caused to the environment	402,831	6,750,916.35
E - Electric scooters	3,494	174,229.32
E - Electric vehicles	258,465	220,763,294.45
Social products and services	12,729,699	338,422,074.05
S - Microinsurance	12,351,766	212,375,539.59
S - Health business for population >65 years old	66,312	21,078,234.59
S - Life Business for population >65 years old	282,584	83,382,959.42
S - Other vulnerable groups	29,037	21,585,340.45
Good governance products and services	13,418	23,338,040.44
G - Insurance for technological risks	13,418	23,338,040.44
TOTAL	15,941,031	€1,395,414,874.22
% OF TOTAL PREMIUMS		5.18%

¹⁸ Consolidated data on sustainable insurance products and services and insurance products incorporating sustainable coverage and/or warranties.

Note 4. Taxonomy alignment according to the EU

Asset alignment according to the EU Taxonomy. Additional information.

Quantitative information

Appendix X to Regulation 2021/2178 details the table that insurance companies must report and the results obtained. In 2023 the information for the MAPFRE Group was as follows:

Table 1. Alignment of Assets KPI

KPI
The weighted average value of all the investments of insurance or reinsurance undertakings that are directed at financing, or are associated with taxonomy-aligned economic activities relative to the value of total assets covered by the KPI, with following weights for investments in undertakings per below:	The weighted average value of all the investments of insurance or reinsurance undertakings that are directed at financing, or are associated with taxonomy-aligned economic activities, with following weights for investments in undertakings per below:
Revenue-based: 0.012%	Revenue-based: €2,851,244.56
CapEx-based: 0.013%	CapEx-based: €3,309,947.93
The percentage of assets covered by the KPI relative to total investments of insurance or reinsurance undertakings (total assets under management). Excluding investments in sovereign companies.	The monetary value of assets covered by the KPI. Excluding investments in sovereign companies.
Coverage ratio: 45%	Coverage: €24,543,250,000
Additional breakdown "DENOMINATOR"
The percentage of derivatives relative to total assets covered by the KPI.	The value in monetary amounts of derivatives.
0.32%	€78,076,151.04
The proportion of exposures to financial and non financial undertakings not subject to Articles 19a and 29a of Directive 2013/34/EU over total assets covered by the KPI:	Value of exposures to financial and non-financial undertakings not subject to Articles 19a and 29a of Directive 2013/34/EU:
Non-financial undertakings: 24.50%	Non-financial undertakings: €6,013,363,762.67
Financial undertakings:10.76%	Financial undertakings: €2,640,361,983.70
The proportion of exposures to financial and non financial undertakings from non-EU countries not subject to Articles 19a and 29a of Directive 2013/34/EU over total assets covered by the KPI:	Value of exposures to financial and non-financial undertakings from non-EU countries not subject to Articles 19a and 29a of Directive 2013/34/EU:
Non-financial undertakings: 10.99%	Non-financial undertakings: €2,697,113,968.51
Financial undertakings:9.79%	Financial undertakings: €2,403,925,653.6
The proportion of exposures to financial and non financial undertakings subject to Articles 19a and 29a of Directive 2013/34/EU over total assets covered by the KPI:	Value of exposures to financial and non-financial undertakings subject to Articles 19a and 29a of Directive 2013/34/EU:
Non-financial undertakings: 7.81 %	Non-financial undertakings: €1,916,421,552.92
Financial undertakings: 8.47%	Financial undertakings: €2,078,641,260.67

The proportion of exposures to other counterparties and assets over total assets covered by the KPI:

26.18%

The proportion of the insurance or reinsurance undertaking's investments other than investments held in respect of life insurance contracts where the investment risk is borne by the policyholders, that are directed at financing, or are associated with, taxonomyaligned economic activities:

8.30%

The value of all the investments that are financing economic activity that are not taxonomy-eligible relative to the value of total assets covered by the KPI:

Revenue 59.34%

CapEx 58.04%

The value of all the investments that are financing taxonomy-eligible economic activity, but not taxonomyaligned relative to the value of total assets covered by the KPI:

Revenue 3.69%

CapEx 3.66%

Value of exposures to other counterparties and assets:

€6,424,397,980.87

Value of insurance or reinsurance undertaking's investments other than investments held in respect of life insurance contracts where the investment risk is borne by the policyholders, that are directed at financing, or are associated with, taxonomy-aligned economic activities:

€2,037,613,745.80

Value of all the investments that are financing economic activity that are not taxonomy-eligible:

Revenue: €14,563,629,123.45

CapEx: €14,243,891,668.08

Value of all the investments that are financing taxonomyeligible economic activity, but not taxonomy-aligned:

Revenue: €905,139,805.42

CapEx: €897,107,358.43

Additional breakdown "NUMERATOR" The proportion of taxonomy-aligned exposures to financial and non-financial undertakings subject to Articles 19a and 29a of Directive 2013/34/EU over total assets covered by the KPI: Non-financial undertakings:

Revenue-based: 2.31% CapEx-based: 3.64%

Financial undertakings: Revenue-based: 0.00% CapEx-based: 0.00%

The proportion of the insurance or reinsurance undertaking's investments other than investments held in respect of life insurance contracts where the investment risk is borne by the policyholders, that are directed at financing, or are associated with, taxonomyaligned economic activities:

Revenue-based: 1.72%

CapEx-based: 2.73%

The proportion of taxonomy-aligned exposures to other counterparties and assets over total assets covered by the KPI:

Revenue-based: 9.12%

Based on investment in fixed assets: 0.06%

Value of taxonomy-aligned exposures to financial and non-financial undertakings subject to Articles 19a and 29a of Directive 2013/34/EU:

Non-financial undertakings: Revenue-based: €567,069,456.45 CapEx-based: €892,819,288.08

Financial undertakings: Revenue-based: €0.00 CapEx-based: €0.00

Value of insurance or reinsurance undertaking's investments other than investments held in respect of life insurance contracts where the investment risk is borne by the policyholders, that are directed at financing, or are associated with, taxonomy-aligned economic activities:

Revenue-based: €421,596,006.50

CapEx-based: €669,015,774.24

Value of taxonomy-aligned exposures to other counterparties and assets over total assets covered by the KPI:

Revenue-based: €18,997,351.22

Based on investment in fixed assets: €124,041.60

Breakdown of the numerator of the KPI per environmental objective (Taxonomy-aligned activities)

	Revenue: 2.805%
	CapEx: 3.211%
	Transitional activities: A 0.010% (revenue)
1) Climate change mitigation	Transitional activities: A 0.028% (CapEx)
	Enabling activities: B 0.774% (revenue)
	Enabling activities: B 1.333% (CapEx)
	Revenue: 0.021%
	CapEx: 0.017%
2) Climate change adaptation	Enabling activities: B 0.009% (revenue)
	Enabling activities: B 0.013% (CapEx)
	Revenue: (-)* %
3) Sustainable use and protection of water and marine	CapEx: %
resources	Enabling activities: B % (revenue)
	Enabling activities: B % (CapEx)
	Revenue: (-)* %
4) Transition to a circular economy	CapEx: %
	Enabling activities: B % (revenue)
	Enabling activities: B % (CapEx)
	Revenue: (-)* %
5) Pollution prevention and control	CapEx: %
	Enabling activities: B % (revenue)
	Enabling activities: B % (CapEx)
	Revenue: (-)* %
6) Protection and restoration of biodiversity and	CapEx: %
ecosystems	Enabling activities: B % (revenue)
	Enabling activities: B % (CapEx)

*In the 2023 report, the taxonomy indicates that financial companies will only have to report their alignment for objectives 1 and 2. Therefore, the fields for objectives 3 to 6 have not been completed in the Breakdown of the numerator of the KPI per environmental objective (Taxonomyaligned activities) table. In the 2023 report, the taxonomy indicates that financial companies will only have to report their alignment for objectives 1 and 2. Therefore, the fields for objectives 3 to 6 in the Breakdown of the numerator of the KPI per environmental objective (Taxonomy-aligned activities) table.

Tabla 2. Nuclear and fossil gas related activities.

Nuclear energy related activities
The undertaking carries out, finances or has exposures to research, development, demonstration and deployment of innovative electricity generation facilities that produce energy from nuclear processes with minimal waste from the fuel cycle.	YES
The undertaking carries out, finances or has exposures to construction and safe operation of new nuclear installations to produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production, as well as their safety upgrades, using best available technologies.	YES
The undertaking carries out, finances or has exposures to safe operation of existing nuclear installations that produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production from nuclear energy, as well as their safety upgrades.	YES
Fossil gas related activities
The undertaking carries out, finances or has exposures to construction or operation of electricity generation facilities that produce electricity using fossil gaseous fuels.	YES
The undertaking carries out, finances or has exposures to construction, refurbishment, and operation of combined heat/cool and power generation facilities using fossil gaseous fuels.	YES
The undertaking carries out, finances or has exposures to construction, refurbishment and operation of heat generation facilities that produce heat/cool using fossil gaseous fuels.	YES

Table 3. Taxonomy-aligned economic activity (denominator)

	Revenue amount and proportion (the information is to be presented in monetary amounts and as percentages)
	CCM + CCA			Climate change mitigation (CCM)		Climate change adaptation (CCA)
Economic activity	Amount %		Amount	%	Amount	%
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation (EU) 2021/2139 in the denominator of the applicable KPI	€0.00	0.00 %	€0.00	0.00 %	€0.00	0.00 %
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation (EU) 2021/2139 in the denominator of the applicable KPI	€0.00	0.00 %	€0.00	0.00 %	€0.00	0.00 %
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation (EU) 2021/2139 in the denominator of the applicable KPI	€8,848,791.31		0.05 % €8,848,791.31	0.05 %	€0.00	0.00 %
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation (EU) 2021/2139 in the denominator of the applicable KPI	€0.00		0.00 % €930,703.38	0.01 %	€0.00	0.00 %
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation (EU) 2021/2139 in the denominator of the applicable KPI	€0.00		0.00 % €421,870.77	0.00 %	€0.00	0.00 %
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation (EU) 2021/2139 in the denominator of the applicable KPI	€0.00	0.00 %	€0.00	0.00 %	€0.00	0.00 %
Amount and proportion of other taxonomy aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI	€767,016,629.06		4.54 % €469,887,076.51 2.78 % €5,212,506.34			0.03 %
Total applicable KPI	€775,865,420.38 4.59 % €480,088,441.98 2.84 % €5,212,506.34 0.03 %

Table 4. Taxonomy-aligned economic activity (numerator)

	Revenue amount and proportion (the information is to be presented in monetary amounts and as percentages)
	CCM + CCA		Climate change mitigation (CCM)		Climate change adaptation (CCA)
Economic activitity	Amount	%	Amount	%	Amount	%
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation (EU) 2021/2139 in the numerator of the applicable KPI	€0.00	0.00 %	€0.00	0.00 %	€0.00	0.00 %
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation (EU) 2021/2139 in the numerator of the applicable KPI	€0.00	0.00 %	€0.00	0.00 %	€0.00	0.00 %
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation (EU) 2021/2139 in the numerator of the applicable KPI	€8,848,791.31		1.10 % €8,848,791.31	1.14 %	€0.00	0.00 %
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation (EU) 2021/2139 in the numerator of the applicable KPI	€0.00		0.00 % €930,703.38	0.12 %	€0.00	0.00 %
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation (EU) 2021/2139 in the numerator of the applicable KPI	€0.00		0.00 % €421,870.77	0.05 %	€0.00	0.00 %
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation (EU) 2021/2139 in the numerator of the applicable KPI	€0.00	0.00 %	€0.00	0.00 %	€0.00	0.00 %
Amount and proportion of other taxonomy aligned economic activities not referred to in rows 1 to 6 above in the numerator of the applicable KPI			€767,016,629.06 98.90 % €469,887,076.51 60.56 % €5,212,506.34			0.67 %
Total amount and proportion of taxonomy aligned economic activities in the numerator of the applicable KPI			€775,865,420.38100.00 % €480,088,441.98 61.88 % €5,212,506.34			0.67 %

Table 5. Taxonomy-eligible but not taxonomy-aligned economic activity

	monetary amounts and as percentages)
			Climate change mitigation (CCM)	Climate change adaptation (CCA)
Economic activity	Amount	%	Amount	%	Amount	%
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation (EU) 2021/2139 in the denominator of the applicable KPI	€0.00	0.00 %	€0.00	0.00 %	€0.00	0.00 %
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation (EU) 2021/2139 in the denominator of the applicable KPI	€0.00	0.00 %	€0.00	0.00 %	€0.00	0.00 %
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation (EU) 2021/2139 in the denominator of the applicable KPI	€427,536.11	0.00 %	€427,536.11	0.00 %	€0.00	0.00 %
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation (EU) 2021/2139 in the denominator of the applicable KPI	€14,785,937.08	0.09 %	€22,697,640.33	0.13 %	€0.00	0.00 %
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation (EU) 2021/2139 in the denominator of the applicable KPI	€6,792,081.06	0.04 %	€12,430,219.31	0.07 %	€0.00	0.00 %
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation (EU) 2021/2139 in the denominator of the applicable KPI	€1,025,129.64	0.01 %	€1,025,129.64	0.01 %	€0.00	0.00 %
Amount and proportion of other taxonomy eligible but not taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI	€1,942,864,005.66 11.51 %		€44,758,543.02	0.27 %	€0.00	0.00 %
Total amount and proportion of taxonomy eligible but not taxonomy-aligned economic activities in the denominator of the applicable KPI	€1,965,894,689.56 11.64 %		€81,339,068.41	0.48 %	€0.00	0.00 %

Revenue amount and proportion (the information is to be presented in

Table 6. Taxonomy non-eligible economic activity

Economic activity	Revenue Amount	Percentage
Amount and proportion of economic activity referred to in row 1 of template 1 that is taxonomy-non-eligible in accordance with Section 4.26 of Annexes I and II to Delegated Regulation (EU) 2021/2139 in the denominator of the applicable KPI	€0.00	0.00 %
Amount and proportion of economic activity referred to in row 2 of template 1 that is taxonomy-non-eligible in accordance with Section 4.27 of Annexes I and II to Delegated Regulation (EU) 2021/2139 in the denominator of the applicable KPI	€36,931.42	0.00 %
Amount and proportion of economic activity referred to in row 3 of template 1 that is taxonomy-non-eligible in accordance with Section 4.28 of Annexes I and II to Delegated Regulation (EU) 2021/2139 in the denominator of the applicable KPI	€3,097,501.55	0.02 %
Amount and proportion of economic activity referred to in row 4 of template 1 that is taxonomy-non-eligible in accordance with Section 4.29 of Annexes I and II to Delegated Regulation (EU) 2021/2139 in the denominator of the applicable KPI	€0.00	0.00 %
Amount and proportion of economic activity referred to in row 5 of template 1 that is taxonomy-non-eligible in accordance with Section 4.30 of Annexes I and II to Delegated Regulation (EU) 2021/2139 in the denominator of the applicable KPI	€0.00	0.00 %
Amount and proportion of economic activity referred to in row 6 of template 1 that is taxonomy-non-eligible in accordance with Section 4.31 of Annexes I and II to Delegated Regulation (EU) 2021/2139 in the denominator of the applicable KPI	€0.00	0.00 %
Amount and proportion of other taxonomy-non-eligible economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI	€14,176,240,070.37	83.95 %
Total amount and proportion of taxonomy-non-eligible economic activities in the denominator of the applicable KPI	€14,179,374,503.34	83.97 %

Table 7. Taxonomy-aligned economic activity (denominator)

	CapEx amount and proportion (the information is to be presented in monetary amounts and as percentages)
		Climate change CCM + CCA mitigation (CCM)			Climate change adaptation (CCA)
Economic activity	Amount	%	Amount	%	Amount	%
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation (EU) 2021/2139 in the denominator of the applicable KPI		€0.00 0.00 %		€0.00 0.00 %	€0.00	0.00 %
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation (EU) 2021/2139 in the denominator of the applicable KPI	€1,672,727.78 0.01 %		€1,672,727.78 0.01 %		€0.00	0.00 %
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation (EU) 2021/2139 in the denominator of the applicable KPI	€13,102,773.29 0.11 %		€13,102,773.29 0.11 %		€0.00	0.00 %
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation (EU) 2021/2139 in the denominator of the applicable KPI		€0.00 0.00 %	€361,859.79 0.00 %		€0.00	0.00 %
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation (EU) 2021/2139 in the denominator of the applicable KPI		€0.00 0.00 %	€241,239.86 0.00 %		€0.00	0.00 %
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation (EU) 2021/2139 in the denominator of the applicable KPI		€0.00 0.00 %		€0.00 0.00 %	€0.00	0.00 %
Amount and proportion of other taxonomy aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI			€887,070,237.73 7.34 % €772,612,791.79 6.39 % €4,101,453.25			0.00 %
Total applicable KPI			€901,845,738.797.46% €787,991,392.516.52% €4,101,453.250.00%

Tabla 8. Taxonomy-aligned economic activity (numerator)

	CapEx amount and proportion (the information is to be presented in monetary amounts and as percentages)
	CCM + CCA		Climate change mitigation (CCM)		Climate change adaptation (CCA)
Economic activity	Amount	%	Amount	%	Amount	%
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation (EU) 2021/2139 in the numerator of the applicable KPI	€0.00	0.00 %	€0.00	0.00 %		€0.00 0.00 %
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation (EU) 2021/2139 in the numerator of the applicable KPI	€1,672,727.78	0.19 %	€1,672,727.78	0.19 %		€0.00 0.00 %
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation (EU) 2021/2139 in the numerator of the applicable KPI	€13,102,773.29		1.45 % €13,102,773.29	1.45 %		€0.00 0.00 %
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation (EU) 2021/2139 in the numerator of the applicable KPI	€0.00	0.00 %	€361,859.79	0.04 %		€0.00 0.00 %
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation (EU) 2021/2139 in the numerator of the applicable KPI	€0.00	0.00 %	€241,239.86	0.03 %		€0.00 0.00 %
Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation (EU) 2021/2139 in the numerator of the applicable KPI	€0.00	0.00 %	€0.00		0.00 % €3,587,372.67 0.40 %
Amount and proportion of other taxonomy aligned economic activities not referred to in rows 1 to 6 above in the numerator of the applicable KPI	€887,070,237.73		98.36 % €772,612,791.79 85.67 %		€514,080.58 0.06 %
Total amount and proportion of taxonomy aligned economic activities in the numerator of the applicable KPI	€901,845,738.79 100.00 % €787,991,392.51 87.38 % €4,101,453.25 0.45 %

Table 9. Taxonomy-eligible but not taxonomy-aligned economic activity

	CapEx amount and proportion (the information is to be presented in monetary amounts and as percentages)
	CCM + CCA		Climate change mitigation (CCM)		Climate change adaptation (CCA)
Economic activity	Amount	%	Amount	%	Amount	%
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation (EU) 2021/2139 in the denominator of the applicable KPI	€0.00	0.00%	€0.00	0.00%	€0.00	0.00%
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation (EU) 2021/2139 in the denominator of the applicable KPI	€0.00	0.00%	€0.00	0.00%	€0.00	0.00%
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation (EU) 2021/2139 in the denominator of the applicable KPI	€427,536.110.00%		€427,536.110.00%		€0.00	0.00%
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation (EU) 2021/2139 in the denominator of the applicable KPI	€8,973,615.080.07%		€11,977,534.13 0.10%		€0.00	0.00%
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation (EU) 2021/2139 in the denominator of the applicable KPI	€5,462,774.640.05%		€9,239,506.130.08%		€0.00	0.00%
Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation (EU) 2021/2139 in the denominator of the applicable KPI	€123,038.450.00%		€123,038.450.00%		€0.00	0.00%
Amount and proportion of other taxonomy-eligible but not taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI	€0.00	0.00%	€0.00	0.00%	€0.00	0.00%
Total amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activities in the denominator of the applicable KPI	€14,986,964.28 0.12%		€21,767,614.82 0.18%		€0.00	0.00%

Table 10. Taxonomy non-eligible economic activity

Economic activity	Revenue Amount	Percentage
Amount and proportion of economic activity referred to in row 1 of template 1 that is taxonomy-non-eligible in accordance with Section 4.26 of Annexes I and II to Delegated Regulation (EU) 2021/2139 in the denominator of the applicable KPI	€0.00	0.00%
Amount and proportion of economic activity referred to in row 2 of template 1 that is taxonomy-non-eligible in accordance with Section 4.27 of Annexes I and II to Delegated Regulation (EU) 2021/2139 in the denominator of the applicable KPI	€12,303,601.77	0.10%
Amount and proportion of economic activity referred to in row 3 of template 1 that is taxonomy-non-eligible in accordance with Section 4.28 of Annexes I and II to Delegated Regulation (EU) 2021/2139 in the denominator of the applicable KPI	€2,103,936.95	0.02%
Amount and proportion of economic activity referred to in row 4 of template 1 that is taxonomy-non-eligible in accordance with Section 4.29 of Annexes I and II to Delegated Regulation (EU) 2021/2139 in the denominator of the applicable KPI	€0.00	0.00%
Amount and proportion of economic activity referred to in row 5 of template 1 that is taxonomy-non-eligible in accordance with Section 4.30 of Annexes I and II to Delegated Regulation (EU) 2021/2139 in the denominator of the applicable KPI	€514,475.27	0.004%
Amount and proportion of economic activity referred to in row 6 of template 1 that is taxonomy-non-eligible in accordance with Section 4.31 of Annexes I and II to Delegated Regulation (EU) 2021/2139 in the denominator of the applicable KPI	€0.00	0.00%
Amount and proportion of other taxonomy-non-eligible economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI	€11,196,900,865.79	92.66%
Total amount and proportion of taxonomy-non-eligible economic activities in the denominator of the applicable KPI	€11,211,822,879.78	92.78%

Qualitative information

Based on the regulations, we consider the assets included in the Denominator as covered assets (€24,543.25 representing 44.67% of total assets). These include tangible assets (goodwill and other intangible assets); real estate investments; financial investments; equity-accounted investments; other investments; social and other loans; and cash.

In addition, in the Numerator (i.e., potentially eligible assets) the assets considered are real estate investments; financial investments; and equity-accounted investments.

The MSCI tool was used to obtain the eligibility and alignment percentages of companies. The amounts of aligned investments were calculated based on the alignment percentages published by the companies in 2022, where the MAPFRE Group has a position at the close of 2023. A review of the MSCI data extraction and relevant adjustments are made in case of obvious error in the tool. Investments that do not have an identifying code recognized by MSCI are analyzed separately.

For investment funds with available information, a look-through of the fund was conducted to analyze their eligibility and alignment. However, funds for which there is no information are listed as ineligible. Furthermore, investments within the Group are considered covered and ineligible once they qualify as investments according to regulations, but their eligibility and alignment cannot be assessed as they are part of the Group's own KPI.

In the case of environmentally sustainable bonds issued by a company, the taxonomy allows specific information on said financing to be included in the calculation of KPIs in relation to its eligibility and alignment. However, in the calculation process, eligibility and alignment information from the company issuing the environmentally sustainable bond has been used, given that it has not been possible to obtain the specific information on environmentally sustainable bonds provided by the MSCI tool.

All properties generating rental income were considered eligible based on activity 7.7 Acquisition and Ownership of Buildings. Real estate for own use was not considered covered. To determine their alignment, an analysis was conducted on all properties generating rental income (where CapEx for renovations to improve environmental efficiency is considered) during the year. Once these criteria were verified, a check was performed to determine whether the properties comply with the requirements in the regulations of activity 7.7. In relation to real estate investment funds, a preliminary analysis was conducted to verify the availability of taxonomy information in the annexes of articles 8 or 9 of the SFDR. In any case, for the alignment analysis of real estate investment funds, alignment data was requested for each one. For those funds that provided this data, it was used as a reference for calculating the corresponding KPIs included in the tables reported earlier. However, for those funds that do not have this information, their underlying assets were analyzed using the property analysis procedure whenever available. The taxonomy information of the MAPFRE Group's real estate properties and real estate investment funds was collected by filling out the corresponding questionnaires.

Remarks:

Table 1 shows the KPIs of the weighted average of the aligned investments, calculated based on the weight of each investment within the MAPFRE GROUP's portfolio.

Since the table "Additional Breakdown of the Denominator" is in terms of total amount and not in terms of CapEx or Business Volume, investments that had eligible CapEx or Business Volume but have neither CapEx nor aligned Business Volume were considered as eligible but not aligned. Eligibility was calculated with the total amount of the investment.

The amounts corresponding to CapEx and Business Volume in the tables "Additional Breakdown of the Denominator", "Additional Breakdown of the Numerator," "Table 2," "Table 3," "Table 4," and "Table 5" were calculated using the eligibility and alignment percentages obtained from MSCI in relation to the investment amount.

For the climate objectives (mitigation and adaptation objective), the eligibility percentages have been calculated with data reported by financial and non-financial companies in the year 2022 obtained by the MSCI tool.

Breakdown of the denominator of the key result indicator by environmental objective (Taxonomy-eligible activity)

1) Climate change mitigation	Business volume: 1.232%
	CapEx: 1.118%
2) Adaptation to climate change	Business volume: 0.000%
	CapEx: 0.000%

Since the analysis of the eligibility of objectives 3 to 6 can only be performed by proxies (through NACE), the corresponding figures were not included in the mandatory reporting tables included above. The result of the proxy analysis is as follows:

Total Eligible Assets with the 3-6 PROXY Objectives	Amount (€ M)
Total Eligible Assets - Objective 3 "Sustainable use and protection of water and marine resources"	€0.00
Total Eligible Assets - Objective 4 "Transition to a circular economy"	€309,434,622.84
Total Eligible Assets - Objective 5 "Pollution prevention and control"	€3,766,550.50
Total Eligible Assets - Objective 6 "Protection and restoration of biodiversity and ecosystems"	€0.00

Alignment of premiums according to EU Taxonomy. Additional information

Qualitative information

Study phases:

The study consists of two phases: eligibility analysis and alignment analysis.

Both phases are analyzed based on the results obtained in premiums and once the process is completed by product, a proportional conversion is carried out by line of business to obtain the KPIs with the insurance revenue metric.

In the eligibility phase, the entire non-life business of each company in the MAPFRE Group's scope of study was analyzed in detail. Said study not only identifies all non-life business products, but also products that directly cover at least one climate risk found in Table A of Delegated Regulation (EU) 2021/2139. The volume of eligible insurance revenue under IFRS 17 was calculated based on the ratio obtained from identifying the premium directly related to a climate risk found in Table A of Delegated Regulation 2021/2139 over the total premium of the product. Therefore, the eligibility KPI represents the total revenue directly covering a climate risk over the total revenue of the non-life business under IFRS 17.

One of the challenges in meeting the obligations of this report was managing data across all domains.

• 1. Traceability: This poses a notable challenge as the financial systems lack the necessary depth to link accounting and technical data, hindering the acquisition of the detailed disaggregated information needed to align with technical criteria compliance.
• 1. Information systems: The information obtained from the Group's accounting information management systems (e.g., SAP and HFM) was used to calculate the reported information. The information found in each of these systems reaches a different level of granularity, and not in all cases was it possible to correctly identify the premium linked to climate risks. There are four different situations depending on the information available:
• a. Premium breakdown at the level of coverages and guarantees: In these cases, the eligible insurance revenue was obtained from the premium breakdown. For this purpose, only the guarantees/coverages related to atmospheric phenomena were selected.
• b. Historical loss experience series: In cases where it was not possible to break down the premium, but it was possible to identify the climate-related coverage, an approximation was made based on claims data.
• c. Market studies: In cases where it was not possible to break down the premium or perform a study on the basis of loss experience, but there was an uncoded climate-related loss experience, the value of the eligible premium was obtained from market studies on climate-related loss experience, such as the UNESPA study "Insurance and Climate Sustainability" or the APESEG study in Peru, among others.
• d. Non-eligible: Where not present in the above situations, no eligible insurance revenue was considered.

The alignment phase involves the analysis of three segments:

1. Technical Selection Criteria: Each of the eligible products obtained in the previous phase was analyzed in detail to verify compliance. It is worth noting that compliance with these criteria requires not only the literal interpretation of the regulation but also the diligent interpretation of the company for each of the sub-criteria. The MAPFRE Group's taxonomy information used for the analysis of the technical selection criteria was collected via corresponding questionnaires with a solid evidence base.

From the information obtained after the analysis of this segment, the percentage used to indicate the alignment of the eligible revenue is calculated, with two values per product obtained as a result: 100% alignment percentage where all the sub-criteria are met or an alignment percentage of 0% where not all of the sub-criteria are met. The volume of insurance revenue aligned for the MAPFRE Group was calculated in such a way as to verify compliance with all the criteria and sub-criteria of the standard, obtaining as a result:

• Volume of insurance revenue aligned: 465,971,550.62€
• Alignment percentage: 2.62%
• 1. DNSH criterion: Revenue obtained from customers with economic activities related to fossil fuels was excluded from the volume of eligible revenue to comply with this criterion.
• 1. MSS criterion: the MAPFRE GROUP complies with the Minimum Social Safeguards as established in the Human Rights policy and the Code of Ethics and Conduct, which encompass procedures and policies for due diligence, including those required by the taxonomy regarding respect of and compliance with the following principles and declarations:
• OECD Guidelines for Multinational Enterprises
• ILO Declaration on Fundamental Principles and Rights at Work
• UN Guiding Principles on Business and Human Rights
• International Bill of Human Rights

With regard to the EU Taxonomy KPI eligibility report for the 2023 fiscal year, the MAPFRE Group, has chosen to follow a conservative and prudent criterion with respect to the 2022 reporting, considering only valid criteria that are possible to demonstrate objectively.

For more information on Due Diligence and Human Rights Due Diligence, please see 7.1. Our principles: due diligence, control and compliance, page 166 and 7.1.1. Due diligence, page 166, which defines the main channels for stakeholder relations and risk prevention and assessment mechanisms that help to prevent the violation of fundamental rights by business areas and operations.

Note 5. People and Organization Indicators

Note 5.1. New hires and employee departures in 2023 by job position level

NEW HIRES AND EMPLOYEE DEPARTURES

Reason for new hire	2023	2022
Merger or acquisition	22	2
External recruitment	4,217	4,462
Return after leave of absence	75	63
Return from international posting	0	2
Temporary contract	425	497
Total	4,739	5,026

Reason for departure	2023	2022
Transfer	94	983
Voluntary	2,356	2,717
Dismissal	1,909	2,255
Leave of absence	139	139
Retirement	134	103
Early retirement	0	2
Death	24	21
Disability	58	46
Termination of temporary contract	445	389
Total	5,159	6,655

TERMINATIONS BY JOB POSITION LEVEL, GENDER AND AGE IN 2023

	Veterans			Baby Boomers			Generation X				Generation Y		Generation Z
	Men	Women	TOTAL	Men	Women	TOTAL	Men	Women	TOTAL	Men	Women	TOTAL	Men	Women	TOTAL
Management and expert management	1	0	1	35	3	38	20	10	30	5	5	10	0	0	0
MIddle managers and experts	1	1	2	43	12	55	47	39	86	47	30	77	5	6	11
Advisors	0	0	0	115	43	158	80	124	204	149	170	319	77	166	243
Associates	1	2	3	43	49	92	44	71	115	113	153	266	88	111	199
TOTAL	3	3	6	236	107	343	191	244	435	314	358	672	170	283	453

NEW HIRES, AVERAGE AGE, AVERAGE SENIORITY, UNWANTED STAFF TURNOVER AT THE GROUP BY GENDER

		2023		2022
	Men	Women	Total	Men	Women	Total
New hires	45.20 %	54.80 %	4739	45 %	55 %	5610
Average age	43.1	41.6	42.2	43	41.1	42
Average length of service	12.5	11.7	12.1	12.5	11.6	12
Unwanted staff turnover (*)	7 %	8 %	8 %	9 %	8 %	8 %
Total staff turnover (**)	16.8 %	16.6 %	16.7 %	20.8 %	20.6 %	20.7 %

(*) Unwanted staff turnover is calculated using the following formula: voluntary departures over average workforce. We consider that within a Group as large as MAPFRE, this remains at low levels.

(**) Total staff turnover is calculated using the following formula: departures over average workforce. (This data is impacted by the assistance business exiting the following countries: United States, United Kingdom, Australia, Belgium, Hungary, Canada, China, India)

NEW HIRES

	Veterans		Baby Boomers		Generation X			Generation Y	Generation Z
Job position level	Men	Women	Men	Women	Men	Women	Men	Women	Men	Women	TOTAL
Management and expert management	1	0	5	0	21	15	16	8	0	0	66
Middle managers and experts	0	0	4	1	65	39	92	80	19	17	317
Advisors	1	0	14	16	141	181	421	446	480	640	2,340
Associates	0	0	16	21	92	144	273	372	480	618	2,016
TOTAL	2	0	39	38	319	379	802	906	979	1,275	4,739

STAFF TURNOVER

	Veterans		Baby Boomers			Generation X		Generation Y	Generation Z
Job position level	Men	Women	Men	Women	Men	Women	Men	Women	Men	Women	TOTAL
Management and expert management	200.0%	—%	14.9%	8.0%	6.4%	7.7%	8.3%	11.3%	—%	—%	8.9%
Middle managers and experts	20.0%	50.0%	13.4%	10.8%	6.9%	6.6%	14.6%	12.5%	20.5%	19.0%	10.1%
Advisors	16.7%	33.3%	17.1%	10.8%	7.2%	7.8%	18.0%	18.5%	30.5%	33.6%	15.9%
Associates	200.0%	21.4%	23.9%	16.8%	18.0%	10.6%	29.3%	23.1%	39.3%	34.0%	23.4%
TOTAL		36.8 % 29.0 % 17.1 % 12.5 %			8.8 %			8.4 % 19.7 % 19.2 % 33.7 % 33.5 % 16.7 %

UNWANTED STAFF TURNOVER

Job position level	Veterans		Baby Boomers		Generation X		Generation Y		Generation Z	TOTAL
	Men	Women	Men	Women	Men	Women	Men	Women	Men	Women
Management and expert management	—%	—%	0.9%	2.0%	2.0%	3.7%	5.1%	5.7%	—%	—%	2.7%
Middle managers and experts	—%	—%	0.7%	1.5%	2.5%	2.3%	8.1%	7.2%	14.5%	7.9%	4.1%
Advisors	—%	—%	1.1%	2.2%	2.9%	2.9%	10.0%	10.1%	18.7%	18.3%	7.7%
Associates	—%	—%	2.1%	3.0%	5.8%	3.6%	13.1%	11.1%	20.1%	20.4%	10.5%
TOTAL	— %	— %	1.2 %	2.3 %	3.1 %			3.0 % 10.2 % 10.0 % 19.1 % 19.1 %			7.6 %

Unwanted staff turnover is calculated using the following formula: voluntary departures over average workforce. We consider that within a Group as large as MAPFRE, this remains at low levels.

TOTAL WORKFORCE BY JOB POSITION LEVEL, CONTRACT TYPE, WORKING HOURS, GENDER AND GENERATION - DECEMBER 2022

Job position	Type of	Working	Veterans			Baby Boomers		Generation X		Generation Y		Generation Z	TOTAL
level	contract	Day	M	W	M	W	M	W	M	W	M	W
		Full-time			20	2	27	7					56
Senior	Permanent	Part-time											0
management		Full-time											0
	Temporary	Part-time											0
		Full-time	2		329	99	621	327	144	94	2	1	1,619
	Permanent	Part-time											0
Management	Temporary	Full-time				1			1	1			3
		Part-time											0
	Permanent	Full-time	4	3	459	269	1,367	1,190	761	697	65	41	4,856
Middle		Part-time			2	4	1	8		10	1	2	28
management	Temporary	Full-time					1	3	5	1		1	11
		Part-time					1						1
		Full-time	14	14	1,021	838	2,671	3,236	2,256	2,492	674	779	13,995
	Permanent	Part-time	1	4	9	22	31	186	110	375	122	418	1,278
Advisors		Full-time			3	2	15	14	37	79	55	75	280
	Temporary	Part-time				1		3	4	6	8	6	28
		Full-time	2	14	334	517	865	1,720	948	1,772	522	1,017	7,711
	Permanent	Part-time			4	50	36	244	72	226	47	105	784
Associates		Full-time			6	2	31	23	80	82	76	111	411
	Temporary	Part-time		1	3	3	4	8	13	33	64	103	232
TOTALS			23					36 2,190 1,810 5,671 6,969 4,431 5,868 1,636 2,659					31,293

AVERAGE WORKFORCE BY JOB POSITION LEVEL, CONTRACT TYPE, WORKING HOURS, GENDER AND GENERATION -

DECEMBER 2022

Job position	Type of contract	Working Day	Baby Veterans Boomers			Generation X		Generation Y		Generation Z		TOTAL
level			M	W	M	W	M	W	M	W	M	W
Senior		Full-time	0	0	22	3	27	8	0	0	0	0	60
	Permanent	Part time	0	0	0	0	0	0	0	0	0	0	0
management		Full-time	0	0	0	0	0	0	0	0	0	0	0
	Temporary	Part time	0	0	0	0	0	0	0	0	0	0	0
		Full-time	3	0	337	103	623	326	139	89	2	0	1,622
	Permanent	Part time	0	0	0	0	0	1	0	0	0	0	1
Management	Temporary	Full-time	0	0	0	2	0	1	1	1	0	0	5
		Part time	0	0	0	0	0	0	0	0	0	0	0
	Permanent	Full-time	3	2	451	257	1,349	1,191	729	677	49	31	4,739
Middle		Part time	0	0	1	3	1	7	1	5	0	1	19
management	Temporary	Full-time	0	0	0	0	1	1	4	1	1	0	8
		Part time	0	0	0	0	0	0	0	0	0	0	0
	Permanent	Full-time	15	16	1,072	883	2,826	3,318	2,421	2,627	612	745	14,535
		Part time	1	4	10	24	30	191	103	365	113	408	1,249
Advisors		Full-time	0	0	3	2	8	16	45	76	51	55	256
	Temporary	Part time	0	1	0	2	0	1	5	7	4	6	26
		Full-time	4	15	347	558	878	1,762	1,063	1,857	546	946	7,976
	Permanent	Part time	0	1	24	72	53	351	84	301	64	134	1,084
Associates		Full-time	0	0	4	2	26	24	72	89	69	119	405
	Temporary	Part time	0	1	1	3	4	7	13	30	56	87	202
TOTALS			26	40	2,272	1,914	5,826	7,205	4,680	6,125	1,567	2,532	32,187

TOTAL WORKFORCE BY JOB POSITION LEVEL, CONTRACT TYPE, WORKING HOURS, GENDER AND GENERATION - DECEMBER 2023

Job position	Type of contract	Working Day	Veterans			Baby Boomers		Generation X		Generation Y		Generation Z
level			M	W	M	W	M	W	M	W	M	W
Senior		Full-time	0	0	18	2	30	9	0	0	0	0	59
	Permanent	Part time	0	0	0	0	0	0	0	0	0	0	0
management		Full-time	0	0	0	0	0	0	0	0	0	0	0
	Temporary	Part time	0	0	0	0	0	0	0	0	0	0	0
		Full-time	0	0	293	95	627	342	164	111	3	1	1,636
	Permanent	Part time	0	0	0	0	0	0	0	0	0	0	0
Management	Temporary	Full-time	1	0	0	1	0	0	0	0	0	0	2
		Part time	0	0	0	0	0	0	0	0	0	0	0
	Permanent	Full-time	5	1	429	247	1,453	1,230	837	781	81	75	5,139
Middle		Part time	0	0	1	1	1	13	0	8	0	0	24
management	Temporary	Full-time	0	0	2	0	5	2	5	3	3	3	23
		Part time	0	0	0	0	0	0	0	1	0	0	1
	Permanent	Full-time	11	10	849	770	2,490	3,184	2,245	2,664	997	1,397	14,617
		Part time	1	4	7	19	11	79	32	89	7	10	259
Advisors		Full-time	0	0	1	4	9	16	40	67	62	70	269
	Temporary	Part time	0	0	1	1	1	2	4	4	12	14	39
		Full-time	0	12	299	463	806	1,623	898	1,654	621	1,081	7,457
	Permanent	Part time	0	0	5	37	31	228	53	185	23	72	634
Associates		Full-time	0	0	5	2	29	25	66	64	92	140	423
	Temporary	Part time	0	0	0	3	3	8	9	33	86	149	291
TOTALS			18						27 1,910 1,645 5,496 6,761 4,353 5,664 1,987 3,012				30,873

AVERAGE WORKFORCE BY JOB POSITION LEVEL, CONTRACT TYPE, WORKING HOURS, GENDER AND GENERATION -

DECEMBER 2023

Job position	Type of contract	Working	Veterans			Baby Boomers		Generation X		Generation Y		Generation Z
level		Day	M	W	M	W	M	W	M	W	M	W
Senior		Full time	0	0	19	2	26	9	0	0	0	0	56
	Permanent	Part time	0	0	0	0	0	0	0	0	0	0	0
management		Full time	0	0	0	0	0	0	0	0	0	0	0
	Temporary	Part time	0	0	0	0	0	0	0	0	0	0	0
		Full time	1	0	296	96	629	342	157	105	2	1	1,629
	Permanent	Part time	0	0	1	1	2	0	0	1	0	0	5
Management	Temporary	Full time	0	0	0	1	0	0	0	0	0	0	1
		Part time	0	0	0	0	0	0	0	0	0	0	0
	Permanent	Full time	5	2	435	256	1,447	1,219	833	771	80	60	5,108
Middle		Part time	0	0	3	3	8	17	6	13	1	1	52
management	Temporary	Full time	0	0	1	0	4	3	4	2	2	2	18
		Part time	0	0	0	0	0	0	0	1	0	0	1
	Permanent	Full time	11	11	862	781	2,505	3,212	2,233	2,679	903	1,303	14,500
		Part time	1	4	18	22	30	94	51	103	10	17	350
Advisors		Full time	0	0	2	3	12	15	41	68	60	70	271
	Temporary	Part time	0	0	0	1	1	2	4	4	13	12	37
		Full time	1	14	312	485	824	1,651	921	1,697	587	1,051	7,543
	Permanent	Part time	0	0	9	52	39	241	60	199	29	84	713
Associates		Full time	0	0	5	2	30	23	73	72	92	123	420
	Temporary	Part time	0	0	0	3	2	7	9	27	58	110	216
TOTALS			19	31	1,963	1,708	5,559	6,835	4,392	5,742	1,837	2,834	30,92 0

VACANCIES COVERED INTERNALLY

Job position	Veterans			Baby Boomers		Generation X		Generation Y	Generation Z
level		Men Women		Men Women		Men Women		Men Women		Men Women	TOTAL
Management and expert management	0	0	3	3	4	7	4	4	0	0	25
Middle managers and experts	0	0	11	7	57	44	59	77	18	25	298
Advisors	0	0	8	22	45	91	150	199	119	151	785
Associates	0	0	2	1	14	37	25	58	47	69	253
TOTAL	0	0	24	33	120	179	238	338	184	245	1,361

Workforce data by FTE

FTES BY GENDER

	FTE	%
Men	13,657	45.0 %
Women	16,670	55.0 %
TOTAL	30,327	100.0 %

FTES BY AGE RANGE

	FTE	%
Under 30	4,852	16.0 %
Between 30 and 50	16,980	56.0 %
Over 50	8,495	28.0 %
TOTAL	30,327	100.0 %

% OF WOMEN OUT OF TOTAL FTES BY JOB POSITIONS OF RELEVANCE

	FTE
Women in management positions	33.1 %
Women in Top Management	28.7 %
Women in junior management	44.7 %
Women in revenue-generating management job positions	43.4 %
Women* in STEM job positions	31.3 %

*Data calculated based on the total number of IT employees.

FTES WITH A DISABILITY BY GENDER

	FTE	%
Men	333	32.1 %
Women	410	39.5 %
Not disclosed*	296	28.4 %
TOTAL	1,039	100.0 %

*There is no disability disclosure requirement in the USA

Average payroll cost per FTE throughout 2023: €1,551.40.

The number of hours of training per FTE in 2023 was 32.5, at an average cost of €359.7.

FTES BY MAIN NATIONALITIES

	FTE	%
Spanish	10,483	34.6 %
Brazilian	4,916	16.2 %
Mexican	1,848	6.1 %
Peruvian	1,420	4.7 %
Dominican	1,067	3.5 %
Colombian	1,061	3.5 %
Argentinian	865	2.9 %
Turkish	636	2.1 %
Italian	581	1.9 %
American	522	1.7 %

Note 5.2. Information on remuneration

Average remuneration and evolution, broken down by gender, age and professional classification

AVERAGE REMUNERATIONS IN SPAIN (figures in euros)

2022
Age and job position	No. of people		Average fixed remuneration
level	M	W	M	W
VETERANS
Management and expert management	1		*
Middle managers and experts
Advisors	1		*
Associates and support personnel
BABY BOOMERS
Management and expert management	202		45 138,410 105,485
Middle managers and experts	282	123	64,390	59,339
Advisors	745	491	47,394	40,725
Associates and support personnel	161	246	37,038	35,446
GENERATION X
Management and expert management	270		122 101,370	96,338
Middle managers and experts	638	517	50,237	47,419
Advisors	1,612	1,903	39,156	35,398
Associates and support personnel	250	995	30,920	29,931
GENERATION Y
Management and expert management	28	13	80,882	68,661
Middle managers and experts	140	114	46,424	38,717
Advisors	568	621	32,714	31,320
Associates and support personnel	117	468	23,346	23,328
GENERATIION Z
Middle managers and experts	6	3	35,312	29,600
Advisors	172	141	24,133	24,864
Associates and support personnel	47	90	20,121	19,082

*For data protection and confidentiality reasons, in those groups in which there are two or fewer men or women, the information is not published.

2023
	No. of people		Average fixed remuneration
Age and job position level	M	W	M	W
VETERANS
Management and expert management	0	0	0	0
Middle managers and experts	0	0	0
Advisors	1	0	*	0
Associates and support personnel	0	0	0	0
BABY BOOMERS
Management and expert management	171	44	144,73 7	108,45 0
Middle managers and experts	260	124	67,184	62,011
Advisors	596	448	47,999	41,339
Associates and support personnel	121	213	38,115	36,265
GENERATION X
Management and expert management	282	133	105,70 1	99,454
Middle managers and experts	741	562	52,374	48,972
Advisors	1,472	1,848	40,137	36,396
Associates and support personnel	253	966	32,470	30,854
GENERATION Y
Management and expert management	31	15	84,900	71,793
Middle managers and experts	188	149	49,166	42,382
Advisors	566	617	34,071	32,603
Associates and support personnel	117	439	23,389	24,529
GENERATION Z
Middle managers and experts	14	7	36,718	38,868
Advisors	200	170	26,358	26,568
Associates and support personnel	58	109	19,844	19,996

*For data protection and confidentiality reasons, in those groups in which there are two or fewer men or women, the information is not published.

		Management and expert management			Middle managers and experts		Advisors			Associates
Country	Average fixed remunerati on - Men	Average fixed remunerati on - Women	Ra tio	Average fixed remuneration - Men	Average fixed remuneratio n - Women	Ra tio	Average fixed remunerat ion - Men	Average fixed remunerat ion - Women	Rati o	Average fixed remunerat ion - Men	Average fixed remunerat ion - Women	Rati o
GERMANY INSURANCE	137,254	131,239	1	81,599	75,347	1	51,034	47,955	1	33,850	34,428	1
ALGERIA MAWDY	4,687,734			1,493,005	1,301,920	1	982,184	735,539	1	734,721	618,337	1
ARGENTINA MAWDY	*	29,439,266		12,814,774	9,716,059	1	6,090,775	5,662,782	1	2,720,598	2,825,800	1
ARGENTINA INSURANCE	31,862,985	29,368,338	1	18,888,806	19,413,449	1	10,851,952	10,539,738	1	7,406,599	8,263,906	1
BRAZIL MAWDY	500,852	*		152,629	127,631	1	52,393	43,627	1	25,714	29,474	1
BRAZIL INSURANCE	610,622	508,165		197,222	168,711	1	80,554	72,844	1	26,691	24,744	1
BANCO BRASIL	564,839	492,378	1	200,971	171,987	1	84,789	80,096	1	18,906	18,723	1
CHILE MAWDY	59,871,624	*		29,176,363	22,692,403	1	20,322,792	19,518,118	1	10,337,828	10,424,851	1
CHILE INSURANCE	86,018,678	92,479,783	1	45,888,873	44,458,113	1	25,657,507	26,274,432	1	14,559,361	14,479,341	1
CHINA MAWDY	*							*
COLOMBIA MAWDY	*	*		49,552,000	86,282,000	2	33,088,800	40,939,826	1	21,031,000	18,889,760	1
COLOMBIA INSURANCE		334,940,835 254,839,906	1	110,413,114	90,138,277	1	44,882,985	43,219,171	1	23,896,563	26,706,290	1
COSTA RICA MAWDY				*	*			13,064,939			*
COSTA RICA INSURANCE	*	34,076,491		*	15,328,977		9,585,789	7,991,883	1	6,109,334	6,102,688	1
ECUADOR MAWDY		70,122		14,358	17,506	1	12,778	13,768	1	7,527	7,515	1
ECUADOR INSURANCE EL	75,427	66,967	1	27,354	20,409	1	14,825	15,353	1	9,520	10,519	1
SALVADOR MAWDY EL	*	*		*			10,792	9,429	1	*	*
SALVADOR INSURANCE	65,373	74,878	1	33,870	33,368	1	17,995	18,524	1	14,061	10,266	1
SPAIN	118,160	99,355	1	54,891	49,642	1	39,631	35,813	1	30,445	29,228	1
FUNESPAÑA STATES OF	46,294	33,786	1	37,312	37,041	1	28,322	22,399	1	24,169	21,703	1
AMERICA INSURANCE	204,368	183,146	1	114,631	102,629	1	81,106	72,701	1	44,362	43,849	1
GUATEMALA MAWDY	*			192,383	*		74,893	118,291	2	*	*
GUATEMALA INSURANCE	839,971	*		321,840	310,115	1	134,180	116,252	1	63,972	62,042	1
HONDURAS MAWDY	*				405,849			*		202,196	177,514	1
HONDURAS INSURANCE	1,753,349	1,403,064	1	652,817	747,690	1	384,253	348,256	1	288,801	290,556	1
HUNGARY MAWDY	*				*		*	*		*
IRELAND MAWDY	105,667	84,333	1	47,062	45,930	1	32,764	30,915	1	24,053	23,647	1
ITALY MAWDY	84,536	76,500	1	42,134	33,648	1	29,319	29,514	1	23,849	23,651	1
ITALY INSURANCE	116,012	96,865	1	62,400	55,699	1	43,070	43,028	1	33,329	38,667	1
MALTA MAWDY	*			26,400	23,509	1	19,566	18,799	1	17,368	16,964	1
MALTA INSURANCE	96,378	100,279	1	57,691	48,410	1	33,604	30,778	1	21,666	21,179	1
MEXICO MAWDY	*			439,368	394,898	1	187,016	181,745	1	110,612	108,095	1

AVERAGE FIXED REMUNERATION BY COUNTRY, JOB POSITION LEVEL AND GENDER (figures in local currency)

INTEGRATED REPORT 2023 222

	Management and expert management			Middle managers and experts			Advisors			Associates
Country	Average fixed remunerati on - Men	Average fixed remunerati on - Women	Ra tio	Average fixed remuneration - Men	Average fixed remuneratio n - Women	Ra tio	Average fixed remunerat ion - Men	Average fixed remunerat ion - Women	Rati o	Average fixed remunerat ion - Men	Average fixed remunerat ion - Women	Rati o
MEXICO INSURANCE	2,524,520	2,058,000	1	758,736	686,620	1	281,468	319,534	1	214,364	254,029	1
NICARAGUA MAWDY	*	*		*			*	*		172,741	176,861	1
NICARAGUA INSURANCE	1,449,345	3,115,649	2	767,673	623,961	1	415,977	303,152	1	220,072	216,990	1
PANAMA MAWDY	*	*		*	24,123		18,693	14,498	1	9,993	9,836	1
PANAMA INSURANCE	121,358	83,148	1	44,297	46,966	1	19,430	17,867	1	12,491	12,293	1
PARAGUAY MAWDY							*
PARAGUAY INSURANCE		312,019,556 330,101,844	1	146,980,750	126,118,462	1	79,842,000	70,688,545	1	48,338,500	53,507,333	1
PERU INSURANCE	360,844	240,851	1	105,261	86,631	1	56,308	46,895	1	24,239	29,455	1
PORTUGAL MAWDY	64,106	*		29,566	26,636	1	19,363	18,506	1	18,945	17,876	1
PORTUGAL INSURANCE PUERTO	83,141	88,029	1	39,197	38,746	1	26,577	25,703	1	20,148	21,139	1
RICO INSURANCE DOMINICAN	144,452	102,824	1	66,674	56,859	1	38,986	35,962	1	23,735	24,679	1
REPUBLIC MAWDY DOMINICAN		3,070,218		816,776	821,326	1	521,283	357,247	1	308,978	302,786	1
REPUBLIC INSURANCE	5,929,924	5,299,205	1	1,883,229	1,577,709	1	822,480	746,778	1	419,931	419,231	1
TUNISIA MAWDY	85,222	44,075	1	16,939	18,174	1	12,066	*		10,276	10,864	1
TURKEY INSURANCE	1,749,337	1,275,193	1	643,597	663,742	1	429,908	416,464	1	227,454	300,913	1
URUGUAY MAWDY	3,670,708	*		1,089,080	1,330,902	1	942,992	859,429	1	528,046	509,611	1
URUGUAY INSURANCE	5,867,350	*		3,325,403	2,847,122	1	2,133,038	1,688,628	1	1,430,527	1,456,414	1
VENEZUELA MAWDY	*	*		56,045	62,476	1	32,997	33,409	1	13,853	14,588	1

* For data protection and confidentiality reasons, 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)

Country	Veterans	Baby Boomers	Generation X	Generation Y	Generation Z
GERMANY INSURANCE		52,514	56,156	54,014	34,496
ALGERIA MAWDY		*	2,168,667	941,351	607,869
ARGENTINA MAWDY	*	*	13,197,327	4,645,914	2,997,043
ARGENTINA INSURANCE	*	15,424,251	14,557,178	11,414,947	8,575,206
BRAZIL MAWDY	*	51,807	151,980	67,625	34,894
BRAZIL INSURANCE	*	106,853	141,149	94,664	46,822
BANCO BRASIL	*	177,200	145,245	79,203	32,133
CHILE MAWDY	*	27,593,192	19,759,891	13,919,322	13,372,424
CHILE INSURANCE		53,042,335	35,151,214	28,879,200	19,022,732
CHINA MAWDY			*
COLOMBIA MAWDY		15,180,000	54,964,258	33,118,479	18,650,000
COLOMBIA INSURANCE		80,551,286	82,074,269	52,582,298	30,181,463

Country	Veterans	Baby Boomers	Generation X	Generation Y	Generation Z
COSTA RICA MAWDY				18,622,572	6,008,340
COSTA RICA INSURANCE		*	21,058,057	9,859,605	7,248,420
ECUADOR MAWDY		7,451	22,197	10,040	8,353
ECUADOR INSURANCE		*	32,604	18,381	12,185
EL SALVADOR MAWDY			15,957	13,218	8,731
EL SALVADOR INSURANCE		35,310	37,421	16,976	10,147
SPAIN	*	57,735	43,747	34,011	24,919
FUNESPAÑA		29,392	26,999	22,728	22,062
UNITED STATES OF AMERICA INSURANCE	70,817	92,280	86,257	69,743	53,917
GUATEMALA MAWDY			*	124,166	160,811
GUATEMALA INSURANCE		281,746	306,094	142,750	67,394
HONDURAS MAWDY			*	242,418	199,044
HONDURAS INSURANCE		844,717	802,464	405,236	334,047
HUNGARY MAWDY			9,833,200	*	*
IRELAND MAWDY		38,154	45,427	38,367	25,951
ITALY MAWDY		57,053	34,763	27,549	23,244
ITALY INSURANCE		64,391	50,882	44,918	35,985
MALTA MAWDY		*	17,077	27,725	18,188
MALTA INSURANCE		58,460	51,266	34,929	26,644
MEXICO MAWDY		126,287	210,411	193,794	134,897
MEXICO INSURANCE	*	1,258,754	599,064	417,502	288,603
NICARAGUA MAWDY		*	638,995	350,455	191,166
NICARAGUA INSURANCE		*	988,165	408,698	264,313
PANAMA MAWDY		*	26,912	16,601	10,104
PANAMA INSURANCE		83,255	36,579	24,749	14,010
PARAGUAY MAWDY				*	*
PARAGUAY INSURANCE			287,462,514	104,841,260	57,176,986
PERU INSURANCE	120,161	111,096	87,231	54,408	34,922
PORTUGAL MAWDY		23,103	27,881	19,213	16,699
PORTUGAL INSURANCE		41,821	30,768	22,246	20,757
PUERTO RICO INSURANCE	42,458	57,742	44,684	34,671	28,882
DOMINICAN REPUBLIC MAWDY		2,865,295	962,469	498,670	326,283
DOMINICAN REPUBLIC INSURANCE		3,609,058	1,815,311	766,564	476,369
TUNISIA MAWDY		119,908	22,929	12,496	10,660
TURKEY INSURANCE		1,024,207	639,596	516,879	365,790
URUGUAY MAWDY			2,606,099	910,568	649,095

Country	Veterans	Baby Boomers	Generation X	Generation Y	Generation Z
URUGUAY INSURANCE		3,573,367	2,404,881	2,311,974	1,352,495
VENEZUELA MAWDY		*	89,812	40,598	20,356
VENEZUELA INSURANCE	57,601	168,528	355,176	39,555	30,974

* For data protection and confidentiality reasons, in those countries where there are two or less men or women in a given group, the information is not published.

Average remuneration of board directors and managers, including fixed and variable remuneration, payments from long-term retirement savings systems, by gender

MANAGEMENT IN SPAIN BY GENDER AND AGE (figures in euros)

2023*

	NO. of people			Average Remuneration
Age Group	Men	Women	Men	Women
Veterans	0	0	0	0
Baby Boomers	167	44	244,849	176,083
Generation X	282	132	172,671	155,285
Generation Y	31	15	112,731	96,943

*This table includes the information related to the main executives of the Group worldwide with headquarters in Spain. Includes all persons with a management position level, excluding directors of MAPFRE S.A. whose information is presented in the Annual Report on Directors' Remuneration of Listed Companies, published on the corporate website at www.mapfre.com and as Note 6.21.Transactions with related parties of the 2023 Consolidated Annual Accounts.

MANAGEMENT BY GENDER AND COUNTRY (figures in local currency)

	Men	Women	Average remuneration -	Average remuneration -
Country			Men	Women
GERMANY INSURANCE	10	4	187,892	191,675
ALGERIA MAWDY	4		6,124,146
ARGENTINA MAWDY	2	3	*	33,280,593
ARGENTINA INSURANCE	25	13	36,093,518	35,201,189
BRAZIL MAWDY	4	2	705,033	*
BRAZIL INSURANCE	47	25	902,765	657,990
BANCO DO BRASIL	25	13	806,434	695,535
CHILE MAWDY	3	1	76,204,957	*
CHILE INSURANCE	19	10	102,211,730	113,507,021
CHINA MAWDY	1		*
COLOMBIA MAWDY	2	2	*	*
COLOMBIA INSURANCE	18	11	463,465,751	321,317,122
COSTA RICA INSURANCE	1	5	*	37,604,158
ECUADOR MAWDY		3		81,122
ECUADOR INSURANCE	4	5	102,187	82,605
EL SALVADOR MAWDY	1	1	*	*
EL SALVADOR INSURANCE	8	5	79,704	93,918
UNITED STATES OF AMERICA INSURANCE	68	40	291,105	241,161
FUNESPAÑA	14	5	63,497	44,905
GUATEMALA MAWDY	2		*
GUATEMALA INSURANCE	6	2	1,364,500	*
HONDURAS MAWDY	1		*
HONDURAS INSURANCE	8	11	2,008,430	1,551,069

HUNGARY MAWDY	1		*
IRELAND MAWDY	3	3	140,667	102,667
ITALY MAWDY	10	4	111,636	96,250
ITALY INSURANCE	8	8	164,035	127,381
MALTA MAWDY	2		*
MALTA INSURANCE	17	8	121,920	117,341
MEXICO MAWDY	2		*
MEXICO INSURANCE	30	15	3,540,494	2,665,204
NICARAGUA MAWDY	2	2	*	*
NICARAGUA INSURANCE	3	6	1,771,935	5,270,814
PANAMA MAWDY	1	2	*	*
PANAMA INSURANCE	13	9	176,746	106,420
PARAGUAY INSURANCE	9	14	370,142,889	506,032,296
PERU INSURANCE	64	28	529,075	289,262
PORTUGAL MAWDY	3	2	83,606	*
PORTUGAL INSURANCE	13	3	122,870	102,029
PUERTO RICO INSURANCE	24	15	217,101	142,466
DOMINICAN REPUBLIC MAWDY		4		4,107,843
DOMINICAN REPUBLIC INSURANCE	17	14	9,260,697	7,707,625
TUNISIA MAWDY	4	7	117,423	49,866
TURKEY INSURANCE	36	35	2,357,017	1,589,173
URUGUAY MAWDY	3	1	4,646,522	*
URUGUAY INSURANCE	6	1	7,586,704	*
VENEZUELA MAWDY	1	1	*	*
VENEZUELA INSURANCE	12	7	3,498,628	626,993

* For data protection and confidentiality reasons, in those countries where there are two or less men or women in a given group, the information is not published.

Ratio of the standard entry-level salary by gender compared to the local minimum salary

MAPFRE applies the principle of equal opportunity and non-discrimination to all selection, promotion and mobility processes, with the aptitudes, merits, worth and professional capacity of the candidates being the criteria that are taken into account in order to make choices in an objective manner.

At MAPFRE, the salary ratio for the standard entry-level category is established by level and the nature of the job function to be performed and does not vary by gender.

Normally, the ratio of the standard initial category is determined by a collective agreement (sector or company). In general, in those countries where there is a local minimum wage, MAPFRE's entry level is higher. For example, in Spain, the headquarters of the Group, the ratio is 1.10.

Annual total compensation ratio

This ratio is calculated for Iberia employees based in Spain, being the location of the company's headquarters, excluding the Corporate Areas or Business Units (MAPFRE RE, MAPFRE Global Risks and MAWDY), as the relationship between the total annual compensation (fixed compensation plus target variable compensation) of the highest paid person in the company and the median total annual compensation (fixed compensation plus target variable compensation) of all employees, taking fulltime annualized compensation, excluding the highest paid person. The resulting data is reasonable considering the current structure of the workforce.

The annual total compensation ratio in Spain is 20.12. Iberia in Spain represents 29.84% of the Group's workforce.

Ratio of the percentage increase of the annual total compensation

The ratio of the percentage increase in total annual compensation in Spain is 0.43. The variation in the ratio on the increase in annual compensation responds to the salary composition of the profiles incorporated in relation to staff turnover and not to changes in the remuneration policy.

This ratio is calculated for Iberia employees located in Spain, being the location of the company's headquarters, excluding the Corporate Areas or Business Units (MAPFRE RE, MAPFRE Global Risks and MAWDY), as the relationship between the increase in the total annual compensation (fixed remuneration plus target variable remuneration) of the highest paid person in the company and the percentage increase in the median total annual compensation (fixed remuneration plus target variable remuneration) of all employees taking the full-time annualized salary, excluding the highest paid person. Iberia represents 29.84% of the Group's workforce.

Note 5.3. Occupational accident data: calculation methods

In 2023, work continued on collating and reporting accident data globally, in strict adherence with GRI 403.

The formulas used to calculate these indices are detailed below.

• OCCUPATIONAL 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.
• OCCUPATIONAL ILLNESS INCIDENCE RATE: Represents the number of occupational illnesses resulting in an absence per 100,000 workers.
• OCCUPATIONAL ACCIDENT INCIDENCE RATE: Represents the number of work-related accidents resulting in an absence per 100,000 workers.
• LOST WORKDAY RATE: 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.
• OCCUPATIONAL ACCIDENT FATALITIES: Represents the number of deaths resulting from a workrelated accident for every one million hours worked.
• OCCUPATIONAL ILLNESS FATALITIES: Represents the number of deaths resulting from an occupational illness for every one million hours worked.

Note 6. Framework to identify MAPFRE's contribution to the Sustainable Development Goals

	11. Sustainable Cities and Communities19	MAPFRE protects its clients and, by extension, society as a whole, thanks to the design, insurance, use, maintenance, repair and recycling of vehicles and other mobility solutions for goods and people. The work of CESVIMAP, a global benchmark technology center that focuses its technological research on, among other things, reducing accident rates and defining more efficient repair processes, is detailed in 5.5. Innovation and digitization in products, services and processes. (Goal 11.2). Activity in the event of catastrophes and the mitigation of their impact on people (Goal 11.5) is inherent to insurance activity. MAPFRE has a catastrophic risk management framework in place (see 4.5.2 Integration of ESG aspects in MAPFRE's underwriting processes). Example of this are catastrophic claims associated with hail storms in Europe, hurricane Otis in Mexico and the fire in Maui (United States). The effect of these losses on the Group's attributable profit was 157 million euros.
	13. Climate Action
Environmental		MAPFRE is working on adapting financial planning to climate change, both from a risk and an opportunity approach (Goal 13.2). The levers driving our transformation into a low-carbon company and its performance are detailed in 6. Committed to the environment. (For more information, please see 8.2. Notes on additional information / Note 8. Environmental indicators.) Given the nature of the insurance business, MAPFRE contributes to reinforcing resilience and adaptability to climate risks and climate-related natural disasters (Goal 13.1). The information on
		taxonomy-eligible economic activity can be found in 4.5.2. Integration of ESG aspects in MAPFRE's underwriting processes.
		As an expert in providing risk coverage, MAPFRE works to improve education, awareness and individual and institutional capacities in relation to climate change adaptation, mitigation and early warning systems (Goal 13.3). It does so not only directly, through participation in the Spanish Green Growth Group, but also by promoting environmental products and services. (For more information, please see 8.2 Notes on aditional information / Note 3. Sustainable Products.)

INTEGRATED REPORT 2023 228 The English version is a translation of the original in Spanish for information purposes only. In case of discrepancy, the Spanish version shall prevail.

	01. No Poverty
		MAPFRE encourages all people, particularly the most vulnerable, to have access to economic services, including microfinancing (Goal 1.4). Given the nature of its insurance activity, MAPFRE contributes to promoting the resilience of these people, reducing their exposure and vulnerability to extreme events (Goal 1.5). In particular, the Company promotes high social content products with basic coverage (Burial,Homeowners, Life, etc.) adapted to very specific local needs and with low premiums, which contribute to preventing and covering the personal risks of different groups and which promote the insurance culture. (For more information, please see 8.2. Notes on additional information / Note 3. Sustainable Products.)
		MAPFRE's volunteers and the donations program linked to it provide assistance to people living in extreme poverty and help to eradicate this phenomenon (Goals 1.1 and 1.2). (For more information, please see 5.6.2.3 Corporate citizenship.)
	03. Good Health and Well-being
		MAPFRE has a healthy company model in place that makes it possible to systematize both physical and mental health promotion actions. (For more information, please see 5.1.5 Health and Well-being.) The Group's health promotion strategy involves working on the main causes of death and illness worldwide, which according to the WHO consist of intervention in the prevention of non-communicable diseases and psycho-emotional well-being (Goal 3.4).
		Through the promotion of microinsurance (for more information, please see 8.2. Notes on additional information / Note 3. Sustainable Products), the Group contributes to universal healthcare coverage, protection against financial risks and access to quality essential health services (Goal 3.8).
Social		Also, among the CESVIMAP lines of action (for more information, please see 5.5. Innovation and digitization in products, services and processes) is technological research aimed at reducing accident rates, which impacts on reducing the number of deaths and injuries caused by traffic accidents in the world (Goal 3.6).
	08. Decent Work and Economic Growth
		Within the framework of the circular economy, MAPFRE provides SMEs with advice, training, technological support and information, with the objective of improving the competitiveness and sustainability of the business sector in Spain (Goals 8.3 and 8.4).
		The Group has a Diversity and Equal Opportunities Policy in place globally (for more information, please see 5.1.5. Diversity, equality and inclusion) that aims to contribute to the achievement of full and productive employment and decent work for all women and men, including young people and people with disabilities, as well as equal remuneration for work of equal value (for more information, please see 8.2. Notes on additional information / Note 5.2. Information on remuneration) (Goal 8.5); employing 30,920 people in 2023.
		As regards indirect employment, MAPFRE promotes between its nearly 125,000 providers (for more information see Chapter 5.2. We generate business for our providers) responsible and sustainable management in terms of occupational health and safety of their contracted personnel (goal 8.8) and human rights: rejection of child and forced labor, basic labor rights, etc. (Goal 8.7) as the Company's priority. This management focus extends to the sales network made up of 81,000 intermediaries. (For more information, please see 5.3. We protect our clients.)

Governance	16. Peace; Justice and Strong Institutions	MAPFRE recognizes the importance of human rights, which is why the protection of same is linked to the Group's internal regulations. In order to contribute to significantly reducing all forms of violence (Goal 16.1) and to promote the protection of fundamental rights, 452 security providers have been trained in this area. It also maintains a zero-tolerance policy toward corruption and bribery (Goal 16.5). To ensure compliance in this respect, MAPFRE has an internal control policy in place that, among other objectives, strives for informational credibility (financial and non-financial and both internal and external) with regard to its reliability, opportunity or transparency (Goal 16.6), and as such, has created channels that facilitate reporting and grant access to complaint mechanisms and enable the restitution of damage caused (Goal 16.3). (For more information, please see 7.2. Business conduct: main ethical behavior measures)
	17. Partnerships for the Goals
		MAPFRE collaborates and participates in business and industry organizations that help it to shape a more comprehensive and global vision of the environment in which the insurance industry operates and the relevant impacts, risks and opportunities of same, while also allowing it to understand the key aspects of an increasingly complex and interconnected economic and social reality. (Goal 17.6 and 17.7) (For more information,please see 8.2. Notes on additional information / Note 7. Collaboration and participation in industry and trade organizations.) MAPFRE's international and local commitment to sustainable development and the 2030 Agenda is solid and is reflected in its voluntary adherence to the main benchmark international and local initiatives it
		actively participates in (https://www.mapfre.com/en/sustainability/international-commitments/).

There follows an explanation of the underlying theory of change that guides these contributions and the financial and social or environmental impact information related to same.

Contribution and Theory of Change	Financial KPIs	Environmental KPIs
Goal 11.2
MAPFRE protects its customers and, by extension, society as a whole through the design, insurance, use, maintenance, repair and recycling of vehicles and other solutions for the mobility of goods and people.
Theory of change	8.2. Notes on
The promotion of increasingly effective and efficient accident prevention systems is key to reducing the number of accidents on the roads and in cities. A lower accident rate not only improves the health and well-being of citizens, but also frees up resources that would otherwise be used by insurers to repair damage caused to public spaces and real estate, directing them towards research aimed at further reducing accident rates or developing repair techniques with a lower environmental impact.	additional information / Note 3. Sustainable Products gives details of those products and services that respond to challenges of sustainable mobility.	In 2023, 5,335 vehicles were processed, from which a total of 57,472 parts were recovered for reuse in different markets.
In this sense, traffic accidents, in addition to having a high social impact, leave a significant footprint on the planet. The treatment of the waste generated in the accident itself, as well as in the subsequent repair of the vehicles involved, can be an opportunity to contribute to the circular economy and safeguard natural capital.
Contribution and Theory of Change	Financial KPIs	Environmental KPIs
Goal 11.5
Action in the event of catastrophes and mitigation of their impact on people is inherent to MAPFRE's insurance activity.
Theory of change
The World Meteorological Organization (WMO) and the United Nations Office for Disaster Risk Reduction (UNDRR) explain a dangerous trend has been observed, especially in recent years, involving a steady rise in natural disasters. Preventing and repairing the damage caused to the environment helps to reduce the danger of these phenomena for people and the planet.
According to data collected by both entities in the Atlas of Mortality and Economic Losses from Weather, Climate and Water Extremes, from 1970 to 2019 natural hazards accounted for half of the disasters that occurred, causing 45% of the deaths reported and 74% of the economic losses. There were more than 11,000 natural disasters, just over 2 million deaths, and 3.46 trillion dollars in losses.	8.2. Notes on additional information / Note 3. Sustainable Products includes information on those insurance products that prevent	8.2. Notes on additional information / Note 3. Sustainable Products includes information on those insurance products that prevent and/or repair damage
According to the The impact of disasters and crises on agriculture and food security: 2021 study from the United Nations Food and Agricultural Organization (FAO), natural hazards (large fires), extreme weather events and even the coronavirus pandemic have caused considerable damage that is particularly affecting the agricultural sector, so much so that up to 63% of the impact of these disasters is on agriculture. This severely affects local communities in particular—which are put under strain by major economic losses—and it also has a big impact at the national and international level more generally.	and/or repair damage caused to the environment.	caused to the environment.
MAPFRE helps people and communities adapt to the risks derived from climate change and different catastrophes by underwriting insurance to cover damages derived from fires, rain, etc. and, where appropriate, agricultural insurance.
Contribution and Theory of Change	Financial KPIs	Environmental KPIs
Goal 13.1
MAPFRE contributes to strengthening resilience and adaptive capacity in the face of climate risks and climate-related natural disasters.	The exposure of Non Life insurance premiums to Taxonomy-eligible economic activity is 7.33%. For more information see section 4.5.2.5. and 8.2. Notes on additional information / Note 4. Taxonomy alignment according to the EU	N/R / N/A
Theory of change
The climate crisis compels us to act to cut carbon dioxide emissions in half by 2030 and achieving neutrality by 2050 if the Paris Agreement targets are to be met.
To achieve this, it is necessary to promote investments, products and services that truly meet the needs of the sustainable agenda and build a recovery and development model that, as part of the Green Recovery, gives way to a decarbonized, sustainable and resilient economy.
Along these lines, the European sustainability goals are one of the reference frameworks guiding the Group's activity.

Goal 13.2 and 13.3

MAPFRE undertakes to incorporate environmental protection policies and measures in its activity, in the policyholder and customer portfolio and in the supply chain, working to improve education, awareness and individual institutional capacities in relation to climate change adaptation, mitigation and early warning systems.

measures in its activity, in the policyholder and customer portfolio and in the supply chain, working to improve education, awareness and individual institutional capacities in relation to climate change adaptation, mitigation and early warning systems. Theory of change	compared to 2019, which represents a 21% reduction, which exceeds the planned reduction target of 11% for 2023.	generation in 2022 was 3,2 GWh, which is equivalent to 9.3% of electricity consumed from own generation.
Global CO2 emissions have increased by almost 50% since 1990. In light of this situation, the United Nations urges action to address the climate emergency in order to save lives and livelihoods. To accelerate the decarbonization of all aspects of the company, a wide range of technological measures and behavioral changes have been put in place to help limit the increase in the average global temperature.	The consumption of 276 tons of paper has been avoided thanks to making use of biometric electronic signatures, thereby avoiding the emission of 251,75 metric tons of CO2eq in Spain and Portugal.	Awareness-raising campaigns aimed at achieving a more efficient and responsible use of water in offices and buildings by employees in Argentina, Chile, Costa Rica, Honduras, Peru, Puerto Rico, El Salvador and Uruguay.
Contribution and Theory of Change	Financial KPIs	Social KPIs
Goals 1.1 and 1.2 MAPFRE's volunteers and the related donation program assist people living in extreme poverty and help to eradicate this phenomenon. Theory of Change Volunteering from its community and corporate dimension creates links between excluded groups, the community and the companies present in it, thus fostering dialogue and social improvement. Through the voluntary service of the people who work at MAPFRE, the company multiplies the impact of its social purpose as an insurer and the activity of Fundación MAPFRE, its main shareholder. The Global Corporate Volunteering Program run through Fundación MAPFRE sets the basic lines of action for volunteer development in the various countries. Its lines of action (nutrition, health, education, environment, emergency aid and social action) contribute both directly to ending poverty and indirectly by establishing the minimum conditions necessary to promote the growth of communities and the individual development of their members. Goals 1.3; 1.4 and 1.5	In 2023, resources amounting to 665,410 euros were earmarked for the development of the volunteering program.	A total of 7217 volunteers and their family members participated in 1917 activities worldwide in 2023, directly impacting more than 127000 people. 21,3% of the global workforce has enjoyed a volunteering experience. The global impact of volunteer actions directly aimed at ending poverty was 9,9% in 2023; representing 2,8% of the funds raised in various collections and reaching 10,1% of the direct beneficiaries of the program.
MAPFRE contributes to providing a shield of economic protection to all people Theory of Change Insurance provides a safety net to all those who have access to it (Goal 1.3), thus making it easier for families not to experience situations of vulnerability after an accident (Goal 1.5). In this sense, insurance provides an economic protection shield for people (Goal 1.4).	8.2. Notes on additional information / Note 3. Sustainable Products includes information on those products and services that respond	8.2. Notes on additional information / Note 3. Sustainable Products includes information on those products and services that respond to

During 2023, energy consumption was reduced by 33.29 GWh

to social challenges and the problems faced by socially disadvantaged groups. The total photovoltaic

In an environment of growing vulnerability, the company promotes products with a high social content with basic coverage (Burial, Homeowners, Life, etc.) adapted to very specific local needs and with reduced premiums, which contribute to prevent and cover the personal risks of different groups and promote the culture of insurance. (See Note 3. Sustainable Products.)

Contribution and Theory of Change Financial KPIs Social KPIs

social challenges and the problems faced by socially disadvantaged

groups.

health care globally by The Group's health promotion strategy involves working on the main maintaining causes of death and disease in the world which, according to the WHO collaboration consist of intervention in the prevention of non-communicable diseases agreements with 11,204 and psychological and emotional well-being. clinics in 14 countries. Theory of Change More than 27,000 In 2023, €1,7 million employees, 90% of the The World Health Organization has defined health as the capacity of people was invested in various workforce, are to develop harmoniously in all areas of their lives: actions to promote represented in joint physical and management-employee In its People Space, MAPFRE is developing coverages that complete the psychological health, health and safety protection of our policyholders against contingencies that occur in both at work and committees, which have everyday family life, added-value services linked to healthy habits and within the family been established to help health care and personalized counseling, proactively adapting products environments of control and advise on and solutions to the family life cycle. employees. this matter. In the workplace, one of the central tools for the continuous improvement 227,383 days were lost to of occupational health and safety conditions is the development and absenteeism due to non consolidation of a culture of prevention. occupational accidents and common illnesses in Promoting remedial action in these two areas helps reduce the main 2023, a reduction of 0.10 causes of death and illness around the world, which, according to the pps in the absenteeism WHO, comprise intervening in the prevention of non-communicable ratio with regard to the diseases and boosting psychological-emotional well-being (Goal 3.4). target. Contribution and Theory of Change Financial KPIs Social KPIs Goal 3.6 MAPFRE, through CESVIMAP, is committed to technological research aimed at reducing accident rates, which will have an impact on reducing the number of deaths and injuries caused by road traffic accidents in the world. Theory of change Since 2015, CESVIMAP has been carrying out research through testing, disassembling and evaluating vehicles incorporating ADAS, such as the Autonomous Emergency Braking System (AEB), Lane Departure Warning CESVIMAP has evaluated (LDW) or its evolution, which is capable of correcting the trajectory, or the the ADAS systems of 33 Lane Keeping System (LKS), with the aim of gaining clear and precise More than €100000 different models of insight into how these systems work and thelimits of same. was allocated to vehicles, extrapolating investigating road results to multiple The main objective of this evaluation is to assess the vehicle's ability to traffic accidents and different versions. 86% avoid accidents and, therefore, personal and material damages with a reducing accident of the models listed in direct influence on road safety. Also, the incorporation of ADAS system levels. the MAPFRE Spain sensors can influence the cost of vehicle repair, as they are located in product catalog are areas of relative exposure to accidents. covered. Likewise, the investigation of traffic accidents makes it possible to determine the conditions prior to the accident and to reconstruct the mechanics of the event. CESVIMAP conducts research in this field with the aim of offering objective data that can lead to the resolution of events and the issuance of expert reports for use in court cases. Accident reconstruction also has a positive impact on road safety since it provides significant data on the human factor, the road, weather conditions, the condition of vehicles and the functioning of safety elements. Contribution and Theory of Change Financial KPIs Social KPIs	Goal 3.4		MAPFRE promotes

Goal 3.8

MAPFRE contributes to universal health coverage through facilitating access to quality essential health services.

Theory of Change

Health and illness insurance together with social security systems play a complementary role until effective universal coverage is achieved.

Through the promotion of microinsurance and assistance services (see Note 3. Sustainable products / A. Social products and services). MAPFRE contributes to universal health coverage by facilitating access to quality essential health services (Goal 3.8).

The development of this activity not only promotes a greater share of penetration in markets with growth potential for MAPFRE, but also contributes to modifying behavior related to seeking health care in these environments. Among the evidence collected by Tra T.T. Pham and Thong L. Pham, in a study developed in Vietnam and published by the Labor Organization in 2012 in relation to health care-seeking behaviors, is the observation that taking out a health microinsurance for vulnerable HCFP people increased to a great extent attendance at outpatient consultations, at 1.11 times, and visits to a public hospital, at 1.7 times.

8.2. Notes on additional information / Note 3. Sustainable Products includes information on those products and services that respond to social challenges and the problems faced by socially disadvantaged groups in relation to health coverage.

8.2. Notes on additional information / Note 3. Sustainable Products includes information on those products and services that respond to social challenges and the problems faced by socially disadvantaged groups in relation to health coverage.

(http://www.impactinsurance.org/sites/default/files/repaper11.pdf)

Contribution and Theory of Change	Financial KPIs	Social KPI
Goal 8.5		The median global
MAPFRE contributes to the achievement of full productive employment and decent work for all women and men, including young people and people with disabilities; as well as equal pay for work of equal value.		adjusted gap on fixed remuneration of the Group, considering 99% of the workforce, is 0,9%,
Theory of change		a percentage equivalent to that of the previous
The ILO-Gallup global survey, Towards a better future for women at work: The amount paid in Voices of women and men, shows how women, on a global scale, want to salaries and wages do paid work. However, one of the main challenges for women in the amounted to €1,258.9 workplace is unequal pay. billion in 2023.		year. For 2023, in Spain, where the Group employs 29,84% of its workforce,
It is a nearly universal fact that women are paid less than men for work of equal value. In the G20 and OECD countries, the average monthly income		the starting category salary ratio is 1.10.
of women is 17% lower than that of men. One of the levers to achieving full employment and decent work is to move toward equal pay for work of equal value or to establish, as a general rule, an entry-level wage higher than the local minimum wage (in those countries where it exists).		During fiscal 2023, 26,931 people worked under annual variable remuneration systems, which represents 87.23% of the global workforce.
Contribution and Theory of Change	Financial KPIs	Social KPIs
Goals 8.7 and 8.8 MAPFRE protects fundamental and labor rights with effective monitoring and control systems and promotes awareness and respect for same among its providers and intermediaries.	Spending on approved providers represents 48% of total spending on service providers in 4 countries where the	The ESG certification process involves about 15,000 suppliers in seven countries. To date, 10,499 suppliers from 6
Theory of change	process is implemented.	countries have been approved.
Forced labor is sometimes the result of situations of vulnerability that households go through when the main breadwinner dies or becomes seriously ill.	Promotion of indirect employment through contracts with special	The performance of the suppliers included in the
In addition to the indirect contribution of insurance in covering the loss of income resulting from such events, it can have a direct impact by establishing approval procedures throughout its value chain to assess the human and labor rights performance of providers, intermediaries and investees.	employment centers or companies with similar characteristics for an amount of 46,072.95 euros.	homologation in matters related to human and labor rights is as follows: forced labor 8.86/10 and child labor 8.50/10.
Contribution and Theory of Change	Financial KPIs	Governance KPIs
Goal 16.1 To significantly reduce all forms of violence and promote protection of fundamental rights.	N/R / N/A	452 security providers have been trained in the area of human rights, which represents 90% of all providers of this type.

Goal 17.6 and 17.7

MAPFRE collaborates and participates in industry and trade 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.

The expense corresponding to contributions from trade and institutional organizations that help create a more comprehensive and global vision of the environment in which the insurance industry operates, its impacts, risks and opportunities was approximately 2 million euros in 2023.

The MAPFRE Group carries out its institutional activity mainly through 37 business and sector associations, foundations, chambers of commerce, and other non-profit organizations.

Note 7. Collaboration and participation in industry and trade organizations

MAPFRE's Executive Committee, acting on behalf of the Board of Directors, conducts an annual assessment and approval of MAPFRE's Global Institutional Presence Map, which encompasses a wide array of affiliations, collaborations, and partnerships with numerous international and national institutions in all the countries where the company maintains a presence. The primary industry and trade associations, foundations, chambers of commerce, and other non-profit organizations through which the MAPFRE Group undertakes its institutional activities are listed below.

Cámara de Comercio de España / Spanish		Massachusetts Insurance Federation
Chamber of Commerce Confederación Española de Organizaciones		Ohio Insurance Institute
Empresariales (CEOE) / Spanish		Insurance Association of Connecticut	USA
Confederation of Business Organizations		American Property Casualty Insurance Association
Unión Española de Entidades Aseguradoras y Reaseguradoras (UNESPA) / Spanish Association of Insurance and Reinsurance Companies		Asociación Mexicana de Instituciones de Seguros (AMIS) / Mexican Association of Insurance Institutions	MÉXICO
Fundación de Estudios de Economía Aplicada (FEDEA) / Foundation for Applied Economics		Cámara Española de Comercio, A.C. / Spanish Chamber of Commerce
Studies Investigación Cooperativa entre Entidades		Cámara Oficial de Comercio de Perú / Official Chamber of Commerce of Peru	PERÚ
Aseguradoras y Fondos de Pensiones (ICEA) / Cooperative Research between Insurance Companies and Pension Funds		Puerto Rico Association of Insurance Companies
Asociación de Instituciones de Inversión Colectiva y Fondos de Pensiones (INVERCO) /		Spain's Chamber of Commerce in Puerto Rico	PUERTO RICO
Association of Collective Investment Institutions and Pension Funds		Gesamtverband der Deutschen Versicherungswirtschaft / General Association of the German Insurance	GERMANY
Fundación Instituto para el Desarrollo e Integración de la Sanidad (IDIS) / Foundation		Industry
Institute for the Development and Integration of Health	SPAIN	Industrie - und Handelskammertag / Chamber of Industry and Commerce
Asociación de Trabajadores Autónomos	International Underwriters Association
(ATA) / Association of Self-Employed Workers		Federação Nacional das Empresas de Resseguros (FENABER) / National	MAPFRE RE
Fundación SERES / Foundation for Social and Corporate Responsibility		Federation of Reinsurance Companies
Forética / Promoting Social Responsibility and Sustainability		IUAI (International Union of Aerospace Insurers)
Confederacion Española de Asociaciones de Jóvenes Empresarios (CEAJE) / Spanish Confederation of Young Entrepreneurs		Asociación Latinoamericana de Suscriptores Marítimos (ALSUM) / Latin American Association of Maritime Underwriters	MAPFRE GLOBAL RISKS
Associations		The International Association of Engineering Insurers (IMIA)
Consejo Empresarial Alianza por Iberoamérica (CEAPI) / Business Council Alliance for Ibero-America		International Union of Marine Insurance (IUMI)
Fundación Iberoamericana Empresarial (FIE) / Ibero-American Business Foundation
Cámara de Comercio Brasil-España / Brazil Spain Chamber of Commerce
Cámara de Comercio de EE.UU. en España / US Chamber of Commerce in Spain
Cámara Comercio Hispano-Turca / Spanish Turkish Chamber of Commerce
Federação Nacional de Seguros Gerais (FENSEG) / National Federation of General Insurance Companies
Federação Nacional de Capitalização (FENACAP) / National Business Federation
Câmara Oficial Espanhola de Comércio no Brasil / Official Chamber of Commerce of Spain in Brazil	BRAZIL
Federação Nacional de Previdência Privada e Vida (FENAPREVI) / National Pensions and

Primary trade organizations and the Paris Agreement

MAPFRE partners with leading European and global trade organizations, and assesses their alignment with the goals of the Paris Agreement. Approvals for memberships in institutions specifically focused on sustainability and climate change follow a three-tier governance process, with an initial evaluation done by the Sustainability Operating Committee, followed by the Executive Committee, and finally by the Risk and Sustainability Committee, which is one of the three delegate committees of the Board of Directors.

Private Insurance Federation

Trade association	Status	Information on its engagement in climate action
		The Sustainable Finance Policy Expert Group (SFPEG) facilitates industry discussions on policy and regulatory advancements in the climate and ESG domain, exploring options to enhance alignment between jurisdictional frameworks and emerging global standards.
Institute of International Finance (IIF)	Aligned	In 2023, the IIF released a report titled The Role of The Financial Sector in the Net Zero Transition: Assessing Implications for Policy, Supervision, and Market Frameworks, which provides recommendations for governments and policymakers to facilitate a transition across the entire economy.
		The CRO Forum is a high-level group comprising Chief Risk Officers from leading European insurance companies, encompassing both publicly traded and privately held companies.
CRO Forum	Aligned	In 2023, the organization released a position paper delving into energy storage systems as a pivotal emerging domain for the insurance sector. According to the CRO, the decarbonization of the economy requires substantial new investment and the development of renewable energy infrastructure. This, in turn, mandates the availability of technologies for storing energy across diverse temporal scales.
		The PEIF is a forum for CEOs of prominent European insurance companies to exchange and articulate their perspectives on political and regulatory issues impacting the European insurance industry.
Pan-European Insurance Forum (PEIF)	Aligned	In 2023, the PEIF engaged in the Climate Resilience Dialogue promoted by the European Commission. The Dialogue is a special group co-chaired by the Directorate-General for Climate Action and the Directorate-General for Financial Stability, Financial Services and Capital Markets Union and constitutes one of the Commission's actions to address the climate protection gap, as outlined in the EU Strategy for Adaptation to Climate Change and the Strategy for Financing the Transition to a Sustainable Economy.
Geneva Association	Aligned	The Geneva Association is the only international association of insurance companies, comprising CEOs from various insurance and reinsurance entities.
		The association addresses pressing climate-related challenges through a research focus on climate change and the environment. Collaborating with reinsurers and experts, their efforts concentrate on finding innovative solutions for risk management and investment strategies. This allows insurers and other stakeholders to expedite the transition toward a more resilient, low-carbon, and nature-friendly economy.
		In 2023, among various initiatives, it hosted an event on public policy related to energy transition titled Climate Change: Mitigation and the Role of Insurers in Energy Transition, which aimed to highlight the active role insurers play through investment strategies and product development in supporting responsible pathways for transition.
	Aligned	The EFR brings together Chairpersons and CEOs from prominent banks and insurance companies in Europe, with a focus on priorities such as sustainable finance and climate change.
European Financial Services Roundtable (EFR)		In November 2015, the Chairpersons and CEOs of EFR members (including MAPFRE's CEO) signed a statement (still in effect) in support of a robust and ambitious response to climate change.
		In 2023, the EFR conducted a session addressing the state of the climate and environmental risk management in the finance sector, which featured a presentation by Frank Elderson, member of the Executive Board of the ECB and Vice-Chair of the Supervisory Board of the ECB.
Global Reinsurance Forum (GRF)	Aligned	The GRF, comprising 13 leading global reinsurers, is dedicated to fostering a stable, innovative, and competitive global reinsurance market.
		The GRF endorses the 2022 research report Anchoring Climate Change Risk Assessment in Core Business Decisions in Insurance by the Geneva Association.
		Member companies of the GRF are eager to collaborate with insurers and other stakeholders, aiming to leverage climate change risk assessment for both adaptation and mitigation efforts.

Trade association	Status	Information on its engagement in climate action
		The CFO Forum is a high-level group comprised of CFOs from leading European insurance companies, whether publicly traded or privately held.
The European CFO Forum	Aligned	In January 2023, the CFO Forum, in collaboration with Insurance Europe, jointly released key messages regarding the initial set of European sustainability reporting standards by the European Financial Reporting Advisory Group (EFRAG). In this declaration, both organizations pledged to actively support the transition to a sustainable economy, emphasizing the prioritization of addressing climate change. They also expressed unwavering support for the EU's ambition to achieve a climate-neutral economy in Europe by 2050.

Moreover, MAPFRE's affiliation with these organizations, including the Net-Zero Asset Owner Alliance (NZAOA) and others, enables the company to take part in diverse working groups dedicated to addressing climate change and related environmental challenges. This participation assists in identifying upcoming policies and regulatory initiatives that could affect the company's operations. At the same time, it contributes to pertinent national and international public discussions regarding the assessment of climate change risks.

	2023	2022	2021
Lobbying, interest representation or similar	€1,413,000	€1,949,000	€2,207,000
Local, regional or national political campaigns / organizations / candidates	€0	€0	€0
Business associations, chambers of commerce or tax-exempt groups (e.g. think tanks)	€625,000	€665,000	€576,000
Other (e.g. spending related to ballot measures or referendums)	€0	€0	€0
Total contributions and other spending	€2,038,000	€2,614,000	€2,783,000

MAPFRE supports most of its promotion, lobbying, defense of interests or similar activities in local and international industry and trade associations in which the Group participates as a member, while gaining a global and complete vision of industry trends and the regulatory framework, as well as guidance on issues of interest to the insurance sector, their impact and associated risks and opportunities.

The expenditure associated with contributions from the mentioned industry and institutional organizations amounted to approximately €2 million in 2023, among them The Geneva Association (contribution of €80,709), European CFO Forum (contribution of €62,000), and the Institute of International Finance – IIF (contribution of €35,944).

The primary areas of interest that have been the focal points of the work carried out by these trade organizations over the course of 2023 were, in order of importance:

1) EU strategy for retail investors -RIS (457,887 euros);

2) Financial and non-financial corporate information (400,651 euros);

3) Financial and prudential regulation (286,179 euros).

Contributions made to chambers of commerce in different countries total €367,314.

Framework for responsible institutional relations

In its interactions with governments and authorities, MAPFRE conducts its business activities with utmost respect for the prevailing regulations in the countries where it operates. This approach aligns with the provisions outlined in the Group's Code of Ethics and Conduct, as well as the company's Anti-Corruption Policy and Corporate Sustainability Policy.

Since 2019, MAPFRE has contributed to the European Union Transparency Register. This registration is driven by its commitment to enhance transparency and openness in interactions with EU institutions, facilitating active involvement in decision-making processes and policy formulation. By adhering to a code of conduct, contributing to the register underscores respect for ethical principles and proper behavior in representing interests with EU institutions, thereby ultimately contributing to the reinforcement of institutional trust.

MAPFRE's institutional activity and its objectives in engaging with various organizations on matters of public policy related to the Company's material topics are outlined below.

Material issue	Subject of public policy	Interaction with associations	Objective of the interaction
Adaptation of the business to climate change	Climate change underwriting risk	Insurance Europe, The Geneva Association, Institute	To promote awareness that insurers have been actively committed to sustainability and climate change adaptation for decades, emphasizing the positive contributions of European insurers in this area.
		of International Finance, UNESPA	To advocate for the necessity of collaboration with public authorities in both mitigation and adaptation efforts.
	Climate protection gap	Insurance Europe, Pan-European Insurance Forum, The Geneva Association, UNESPA	To support and advocate for greater development of global risk mapping for natural hazards.
Innovation and digitalization	Cyber risk insurance	Insurance Europe, The Geneva Association, Institute	To foster increased awareness regarding the pivotal role of cyber insurers in enhancing the EU's cyber resilience and the necessary conditions for fulfilling this role, including access to data.
		of International Finance	Specifically, to raise awareness among SMEs about the imperative for cyber resilience and the significant role that insurance plays in achieving it.
	Artificial intelligence	European Financial Services Roundtable, Insurance Europe, The Geneva Association, Pan European Insurance Forum, UNESPA	To promote a regulatory framework that is proportionate, aligned with digital technology, future-oriented, and grounded in principles that encourage innovation, facilitating mutual benefits for consumers and insurers through digitization.
	Insurtech	European Financial Services Roundtable, Insurance Europe, Institute of International Finance, UNESPA	To advocate for upholding the principle of "same activities, same risks, same rules".
Cyber security and privacy	Cybersecurity	CRO Forum, Insurance Europe, Institute of International Finance, UNESPA	To contribute to constructive discussions in EU regulatory forums, including the European Commission, the European Insurance and Occupational Pensions Authority (EIOPA), and the European Union Agency for Cybersecurity (ENISA), regarding insurers' cybersecurity.
	Dissemination of cyber information	European Financial Services Roundtable, Insurance Europe	To encourage collaboration with regulators (ENISA, EIOPA) to establish a foundational information set that facilitates appropriate underwriting, with the flexibility for potential evolution of the shared information in the future.
	Cyber protection gap	The Geneva Association, Pan European Insurance Forum, UNESPA	To explore the possibility of establishing collaboration agreements between public authorities and private actors (PPP) in the realm of cyber risks.
	Access to data	Insurance Europe, UNESPA	To increase and improve insurers' access to data.
	Data protection & privacy	Insurance Europe	To establish a constructive dialog with the European Data Protection Board (EDPB).
Talent management	Professional development	EnClave de Personas	To engage in discussions about emerging models of professional relationships and the imperative to evolve professional development models.

Customer protection	Financial inclusion	European Financial Services Roundtable, Insurance Europe, The European CFO Forum, Institute of International Finance, UNESPA	To advocate for regulatory advancements in the realm of diversity, equity, and inclusion (DEI) within the insurance industry.
	Environmental responsibility	Insurance Europe, The Geneva Association, Pan European Insurance Forum, UNESPA	To promote the voluntary marketing of environmental third party liability insurance and engage in awareness-raising activities.
	Protection gap in pensions and health	European Financial Services Roundtable, Insurance Europe, The Geneva	To facilitate access to accurate and comprehensive information regarding the features of pension products, considering existing national practices.
		Association, Pan European Insurance Forum	To raise awareness among regulators, supervisors, and stakeholders about the imperative for individuals to save for retirement and the benefits of long-term savings.
	Financial Education	Insurance Europe, UNESPA	To promote awareness among regulators regarding the pivotal role of financial education in consumer protection.
Sustainable Investments	Environmental and social taxonomy	Insurance Europe, The European CFO Forum, The Geneva Association, UNESPA	To convey MAPFRE's efforts and actions in the realm of environmental and social sustainability.
Sustainable products and services	Underwriting sustainable products	European Financial Services Roundtable, Insurance Europe, The European CFO Forum, Pan European Insurance Forum, UNESPA	To define transparent and standardized ESG criteria for assessment by rating agencies.

Note 8. Environmental indicators

TABLE I. ENVIRONMENTAL CONTEXT

	Units	2023*	2022	2021
Employees working under environmental reporting	employees	30,544	30,988	31,243
(Integrated Report)*	%	98.61	98.70	96.60
Employees working under environmental	employees	13,558	15,332	15,140
management certification (ISO 14001)	% 43.92 employees 8,950 % 28.99 employees 27,988 % 90.35	48.99	46.81
Employees working under energy management			9,408	7,864
certification (ISO 50001)			30.06	24.32
Employees working under carbon footprint verification			26,743	26,344
(ISO 14064)			85.46	81.46
Premium volume managed under SIGMAYEc3 in relation to total premiums	%	97.47	94.50	92.46

*The process of integrating FUNESPAÑA into the corporate processes related to collecting environmental data began in 2023. This table incorporates data from FUNESPAÑA employees.

TABLE II. SIGMAYEc3 CONTROL

	Units	2023	2022	2021
Environmental diagnosis and inspections	Units	3	0	12
Internal environmental audits	Units	59	57	54
Environmental certification audits	Units	48	39	37.5
Assets subject to environmental controls	%	43,92%*	48.99 %	46.81 %
Environmental compliance: In relation to environmental fines, there was no record of having received any significant fine in 2023.

Resources devoted to environmental risk prevention: 1.28 million euros

The MAPFRE Group (in Germany, Argentina, Brazil, Spain, Italy and Peru) has public liability insurance in place, with specific coverage for the management of its environmental risks due to pollution (€300,000-10,000,000) and environmental responsibility (€300,000), as established by state legislation.

*The process of integrating FUNESPAÑA into the corporate processes related to collecting environmental data began in 2023. This table incorporates data from FUNESPAÑA employees.

TABLE III. CARBON FOOTPRINT BROKEN DOWN BY SCOPE

The following greenhouse gases are reported: CO² , CH4, N2O, HFCS, PFCS, SF6, NF3, for the three scopes included in the GHG Protocol, as well as in the ISO 14064 Standard. The methodology for calculating the carbon footprint of MAPFRE is carried out through financial control. For the calculation, emission factors of the generation mix of the corresponding country and the latest available information are applied: DEFRA, International Energy Agency, GHG Protocol, as well as GWP based on the "IPCC Fifth Assessment Report (AR5) over a 100-year period".

	Units	2023*	2022	2021
Carbon footprint (GHG emissions)
Scope 1	tCO2e	10,422	9,939.46	10,035.33
Scope 2 (market based)	tCO2e	7,678	11,830.17	11,144.46
Scope 2 (location based)	tCO2e	18,458	26,742.72	24,860.21
Scope 3	tCO2e	46,944	39,957.48	29,276.65
(Scope 1+ 2 (market based) +3)	tCO2e	18,100	21,769.63	21,179.8
Total GHG emissions (Scope 1+ 2 (market based) +3)	tCO2e	65,043	61,727.1	50,456.44
Carbon footprint indicators
Emissions per employee	tCO2e/ employee	2.13	2.04	1.61
Emissions per € of premiums	tCO2e/€ of premiums	2.13	2.22	2.28
Carbon footprint coverage with respect to number of employees	%	98.61	98.7	96.6

*The process of integrating FUNESPAÑA into the corporate processes related to collecting environmental data began in 2023. This table incorporates environmental data, partial and by category, from FUNESPAÑA.

The main environmental data from FUNESPAÑA in 2023 were: Scope 1 emissions: 1,947 tCO2e, Scope 2 (market based) emissions: 0 tCO2e, Scope 3 emissions: 846 tCO2e; total energy consumption: 11,897,247 kWh; total fuel consumption in permanent sources: 2,650,016 kWh; total fuel consumption in mobile sources: 2,269,938 kWh; total natural gas consumption: 3,761,813 kWh; electrical energy purchased: 3,215,479 kWh; total water consumption: 19,190 m3; total paper consumption: 6,512 kg.

	Units	2023*	2022	2021
Scope 1	tCO2e	10,422.02	9,939.46	10,035.33
Natural gas	tCO2e	2,971	2,917	2,726
	3 m	1,457,577	1,447,294	1,442,049
Fuels in fixed installations	tCO2e	1228	593	1,388
	l	611,875	293,708	458,674
Refrigerant gases	tCO2e	1,665	1,842	1479
	kg	881	1,059	753
Fuel in own vehicles	tCO2e	4558	4587	4,686
	l	2,070,833	2,038,286	1,969,118
Scope 2	tCO2e	7,697	11,830	11,144
Electricity	GWh	92	97	92
Scope 3	tCO2e	4.6943,55	39,957	29,277
Business travel	tCO2e	4,544	3,028	2,494
(air, train and bus)	Km	35,615,679	33,178,652	14,506,838
Business travel	tCO2e	1,985	1,977	1,119
(vehicles)	Km	11,913,073	11,582,673	6,523,547
Paper consumption*	tCO2e	966	1,043	1,333
Paper waste	tCO2e	12.15	12.42	10.86
Toner use	tCO2e	115.99	128.1	74.73
Toner waste	tCO2e	77.91	120.26	94.75
Fluorescent waste	tCO2e	0.11	0.1	0.31
Commuting	tCO2e	39241.5	33648.59	24150.04

TABLE IV. CARBON FOOTPRINT BREAKDOWN AND CATEGORIES INCLUDED IN THE DIFFERENT SCOPES

*The process of integrating FUNESPAÑA into the corporate processes related to collecting environmental data began in 2023. This table incorporates environmental data, partial and by category, from FUNESPAÑA.

The main environmental data from FUNESPAÑA in 2023 were: Scope 1 emissions: 1,947 tCO2e, Scope 2 (market based) emissions: 0 tCO2e, Scope 3 emissions: 846 tCO2e; total energy consumption: 11,897,247 kWh; total fuel consumption in permanent sources: 2,650,016 kWh; total fuel consumption in mobile sources: 2,269,938 kWh; total natural gas consumption: 3,761,813 kWh; electrical energy purchased: 3,215,479 kWh; total water consumption: 19,190 m3; total paper consumption: 6,512 kg.

TABLE V. RESOURCE CONSUMPTION

	Units	2023**	2022	2021
ENERGY
Total energy consumption	GWh	133.51	135.93	127.99
Natural gas consumption	GWh	15.44	15.58	14.56
Fuel consumption fixed installations	GWh	5.28	2.54	1.33
Fuel consumption of mobile installations	GWh	21.27	21.01	19.93
Conventional electricity procured	GWh	27.82	33.86	31.79
Electricity procured from renewable sources	GWh	63.7	62.94	60.39
Energy consumption/employee	kWh / employee year	4370.91	4487.51	4093.89
KWh/premium Energy consumption/premium (thousand euros)		4.37	4.9	5.77
WATER*
3 Total water consumption m		634,000.77	680,777	585,782
3 Water consumption per employee m /employee		20.76	21.97	18.73
PAPER
Total paper use	MT	1,120.00	1,136.00	1,456.83
TONER
Toner consumption	Kg		10,693	10,266

* Consumption of water from the public network in line with local limitations.

**The process of integrating FUNESPAÑA into the corporate processes related to collecting environmental data began in 2023. This table incorporates environmental data, partial and by category, from FUNESPAÑA.

The main environmental data from FUNESPAÑA in 2023 were: Scope 1 emissions: 1,947 tCO2e, Scope 2 (market based) emissions: 0 tCO2e, Scope 3 emissions: 846 tCO2e; total energy consumption: 11,897,247 kWh; total fuel consumption in permanent sources: 2,650,016 kWh; total fuel consumption in mobile sources: 2,269,938 kWh; total natural gas consumption: 3,761,813 kWh; electrical energy purchased: 3,215,479 kWh; total water consumption: 19,190 m3; total paper consumption: 6,512 kg.

TABLE VI. WASTE

		Units	2023*	2022	2021
	WASTE
	TOTAL QUANTITY OF WASTE MANAGED	MT	3,567.00	3,318.00	3,063.00
	TOTAL QUANTITY OF HAZARDOUS WASTE	MT	178.00	218.00	1,937.00
	TOTAL QUANTITY OF NON HAZARDOUS WASTE	MT	3,389.00	3,100.00	1,126.00
	HAZARDOUS WASTE**
	Reused	MT	14	25	41
	Recycled	MT	131	162	1,861
	Other valorization processes	MT	4.35	N/D	N/D
	TOTAL HAZARDOUS WASTE VALORIZED	MT	149.76	187	1,902
VALORIZATION PROCESSES	NON-HAZARDOUS WASTE***
	Reused	MT	0.5	0	N/D
	Recycled	MT	3,047	2,886	1,009
	Other valorization processes	MT	69	N/D	N/D
	TOTAL NON-HAZARDOUS WASTE VALORIZED	MT	3,116	2,886	1,009
	HAZARDOUS WASTE**
	Incineration	MT	1.91	N/D	1
	Landfill	MT	26	31	35
	Other elimination processes	MT	0.52	N/D	N/D
	TOTAL HAZARDOUS WASTE ELIMINATED	MT	28.28	31	35
ELIMINATION PROCESSES	NON-HAZARDOUS WASTE***
	Incineration	MT	0.37	N/D	N/D
	Landfill	MT	272	215	117
	Other elimination processes	MT	0	N/D	N/D
	TOTAL NON-HAZARDOUS WASTE ELIMINATED	MT	272.5	215	117
	TOTAL QUANTITY OF WASTE ELIMINATED	MT	301	246	151
	TOTAL QUANTITY OF WASTE VALORIZED	MT	3,266	3,072	2,911
	WASTE ELIMINATED	%	8.43	7.43	4.95
	WASTE VALORIZED	%	91.57	92.57	95.05
	QUANTITY OF WASTE GENERATED PER EMPLOYEE	(MT/employee)	0.11	0.11	0.09

*Data from FUNESPAÑA are included.

**The following are considered hazardous waste: polluting absorbents, used oil, amalgams, antifreeze, medical devices, solvent, lead batteries, contaminated plastic containers, cabin filters, aqueous sludge with solvent, water-oil sludge, laundry sludge, paint and varnish sludge, hydrocarbon mixtures, household batteries, sanding dust, lighting waste, paint and varnish waste, sanitary waste, empty sprays and aerosols and electrical and electronic waste.

***The following are considered non-hazardous waste: non-hazardous absorbents, used cooking oil, aluminum, mixed garbage, organic garbage, used catalysts, scrap metal, mixed packaging, glass, wood, medicines, tires, paper, cardboard, bumpers, plastics , X-rays, medical waste, plastic caps, toner and glass.

Note 9. Principles of the Global Compact and prevention and compliance measures in human rights

MAPFRE shows its commitment to each of the 10 United Nations Guiding Principles for Business and Human Rights in a number of ways.

MAPFRE adheres to:

• The United Nations 2030 Agenda and its Sustainability Development Goals (SDGs)
• United Nations Global Compact
• United Nations Principles for Responsible Investment (PRI)
• UNEP FI Principles for Sustainable Insurance (PSI)

The approval and public dissemination of:

• Institutional, Organizational and Business Principles
• Code of Ethics and Conduct (express reference)
• Human Rights Policy
• Sustainability Policy

To respond to these commitments, the Group has the following systems for the prevention and assessment of internal risks and those arising from our activity:

• Impact self-assessment Guide to the implementation of the United Nations Guiding Principles on Business and Human Rights, prepared by the Spanish Network of the Global Compact
• MAPFRE materiality survey (Detects internal risks and risks derived from the activity)
• Permanent dialogue with stakeholder groups and workers' legal representatives
• ESG analysis report on underwriting and investments
• RepRisk report, to assess and monitor the ESG risks of business conduct related, among other things, to human rights
• Internal, control and compliance audits
• Approval of providers working under ESG criteria, including aspects related to human rights, nondiscrimination and compliance with environmental and labor regulations

The Company has the following redress and restitution mechanisms in place that cover all the circumstances included in the 10 Principles:

• Sustainability Operating Committee
• Corporate Ethics Committee
• Channels for ethical complaints arising from non-compliance with the Code of Ethics and Conduct, available to any stakeholder and anonymous party
• Specific channels and means for the protection of rights and processing of customer complaints

The accompanying table details the organization's specific commitment to each of the 10 Global Compact Principles and human rights, as well as the main prevention and mitigation measures, along with the available grievance and redress mechanisms. These commitments and mechanisms are additional to those already mentioned.

	Global Compact Principles	MAPFRE's public commitment to Human Rights	Prevention and mitigation (due diligence)	Complaint and redress mechanisms
	Principle 1
Human Rights	"Companies must support and respect the protection of internationally proclaimed human rights under their sphere of influence." Principle 2 Businesses must ensure that their	· Human Rights policy · Corporate Sustainability Policy	· Training on human rights for employees and provides, as a preventive measure · Awareness of the United Nations 2030 Agenda	· Ethical whistleblower channel
	businesses are not complicit in human rights violations."
	Principle 3	· MAPFRE signs up to the UN Women's Principles and adheres to the United Nations Standards of Conduct for Companies on LGTBI	· Equality in the Company seal (from the Spanish Ministry of
	"Businesses must uphold freedom of association and effectively recognize the right to collective bargaining."	matters ·ILO Global Business and Disability Network ·Diversity Charter	Equality) · Family-friendly company certification · Engagement survey · Performance evaluation · Development plans · Internal and external reputation surveys · Healthy Company Model (occupational risk assessments: safety, hygiene and ergonomics, psychosocial risks, medical examinations, epidemiological studies,	· Harassment protocol for employees · Human Resources Departments · Workers' legal representatives
	Principle 4	· Diversity and Equal Opportunities
Labour	"Businesses must uphold the elimination of all forms of forced and compulsory labor."	Policy · Social commitments 2022-2024, assumed at the Annual General Meeting held in 2022. Among other things, the Company pledged to
	Principle 5	close the gender pay gap, with a tolerance threshold of 1% and for
	"Businesses must uphold the eradication of child labor"	people with a disability to make up 3.5% of the workforce. (For more information, please see 4.3.
	Principle 6	Sustainability strategy.) · Environmental commitments
	"Businesses must uphold the elimination of discrimination with respect to employment and jobs"	2022–2024 (For more information, please see Section 4.5. Our business and sustainability.)	etc.) · Gender Diversity: Catalog of measures 2022-2024
	Principle 7
	"Businesses must maintain a precautionary approach that favors the environment"	· Paris Pledge for Action Adherence to Net-Zero Asset Owner Alliance (NZAOA)
	Principle 8	· Environmental Policy · Social commitments 2022-2024,
Environment	"Businesses must encourage initiatives that promote greater environmental responsibility"	assumed at the Annual General Meeting held in 2022. (For more information, please see 4.3. Sustainability strategy.)	· Environmental management system (SIGMAYEc3 )
	Principle 9	· Environmental commitments 2022–2024 (For more information,
	"Businesses must encourage the development and promotion of environmentally friendly technologies"	please see Section 4.5. Our business and sustainability.)
Anti-Corruption	Principle 10	· Anti-corruption Policy	· MAPFRE Anti Corruption Framework · Criminal risk prevention model · Internal systems and	· Financial and Accounting Whistleblower
	"Businesses must work against corruption in all its forms, including extortion and bribery"		procedures established to detect situations of corruption, fraud prevention and money laundering	channel accessible to employees

As established in the Group's Human Rights Policy, MAPFRE's commitment in this area is inspired by the following international declarations and standards:

• The United Nations International Bill of Human Rights
• The 10 Principles of the United Nations Global Compact
• The United Nations Guiding Principles on Business and Human Rights
• The OECD Guidelines for Multinational Companies
• The UN Women's Principles
• The Global Standard of Conduct for the protection of LGBTI people in companies
• The principles and rights established in the main conventions of the International Labor Organization (ILO)
• The ILO Declaration of Fundamental Principles and Rights at Work
• The Principles for Sustainable Insurance (PSI)
• The United Nations Principles for Responsible Investment (PRI)

Likewise, in terms of the due diligence approach in the area of human rights, MAPFRE implementation is based on four key touchpoints:

• The establishment of commitments and design of preventive actions
• The definition and execution of action plans in relation to each of these
• The verification and evaluation of the actions implemented
• The adoption of corrective measures if necessary

In each of these four moments, the following best practices should be highlighted.

Preventive action:

At MAPFRE, the protection of human rights is linked to the internal regulations approved at the highest level of the organization. Said protection is reinforced through the commitments acquired by the Group by adhering to different principles and initiatives of the United Nations.

Action plans:

In addition to including respect for Human Rights, the regulations (such as, for example, the MAPFRE purchasing standard and its Responsible Investment Framework) define the roles and responsibilities of the teams impacted by the regulations.

DUE DILIGENCE TOUCHPOINTS IN MAPFRE'S APPROACH TO HUMAN RIGHTS

Verification and evaluation:

The progress and level of achievement of the specific commitments of the Group in ESG matters included in the Sustainability Plan, among which are issues related to Human Rights, are periodically reported to the Sustainability Operating Committee, the Risk and Sustainability Committee and the Board of Directors.

Corrective action:

MAPFRE makes consultation and complaint channels available to all its stakeholders associated with ethical behavior and practices that breach human rights.

Regarding the remediation of adverse impacts, the Group establishes the following three levels of participation:

Causal relationship: when MAPFRE activities are identified that by themselves are sufficient to produce an adverse impact on the environment or on human rights, the Company will establish action plans aimed at repairing the real impacts caused and, where appropriate, stopping or prevent the conduct from which such practices derive.

Contribution relationship: in those cases where MAPFRE's business relationship with its suppliers or its investment operations substantially increases the threat of a negative impact, the Company will establish action plans aimed at: stopping or preventing their contribution to the real impact caused by a third and will collaborate with the repair of the part of the negative impact that corresponds to it; likewise, to the extent possible, MAPFRE will use its influence to mitigate residual impacts.

Linking relationship: when there is a relationship between the negative impact caused by a third party and MAPFRE's products, services or activities. In these cases, the Company will establish action plans aimed at, to the extent possible, using its ability to influence so that the cause of the adverse impact prevents or mitigates it.

Note 10. Cybersecurity and business continuity

MAPFRE addresses cybersecurity and business continuity action in an integrated manner.

Strategic lines and measures related to cybersecurity

Protection against cyberrisks	• Early identification of external factors likely to modify asset protection needs, fundamentally: threat level, regulatory requirements, internal requirements arising from the transformation process and requirements of stakeholders • Evaluation and continuous evolution of cyberattack prevention, detection and response mechanisms. • Evaluation and continuous evolution of operational resilience mechanisms. • Third-party security risk management.
Proactive responsibility	• Early adaptation to applicable regulations on cybersecurity and/or privacy in the different geographies the company operates in. • Incorporation from design level of the security and privacy aspects necessary to adequately protect the privacy of personal data. • Application in the company's processes of the appropriate technical and organizational measures, not only to guarantee protection and comply with applicable regulations, but also to demonstrate compliance to control authorities and interested parties.
Cybersecurity and privacy culture	• Continuous awareness-raising plan • Continuous education and training plan • Obtaining recognized certifications in security, privacy and data protection
Protection from the outset	• Integration of cybersecurity and privacy in the life cycle of the company's new initiatives and projects, ensuring privacy and protection by design and by default. • Evaluation of the impact on privacy of new data treatments and the corresponding implementation of controls and measures. • Inclusion of cybersecurity and data privacy criteria in technology solutions and services procurement processes, as well as in third-party agreements.
Promoting collaboration, both through public private partnerships and private-private partnerships	• Participation in industry and institutional initiatives that contribute to improving knowledge related to techniques, tactics and tools used by organized cybercrime groups. • Participation in associations and cybersecurity collaborative networks, such as FIRST, CSIRT.es, INCIBE and FS-ISAC. • Participation in associations that promote privacy and in trade and institutional initiatives aimed at clarifying the application of the GDPR, such as the DPO Forum or the DPO Community.

Measures related to the protection of personnel and business continuity

In an integrated and aligned manner with the actions in the fields of data privacy and cybersecurity (for more information, please see Chapter 7.3. We promote cybersecurity and data privacy, page 181), MAPFRE identifies the protection of personnel working in the Group and its facilities as essential elements in security matters, as well as the appropriate resilience of its operations and the services it provides:

Protection of personnel

Protecting the people who work at MAPFRE is ensured through providing a safe working environment, as a result of the implementation, from the project phase and correct maintenance over time, of measures to protect the facilities; the development, implementation, maintenance and testing of selfprotection plans in work centers; and the design and implementation of specific measures for events and travel involving personnel (especially to risk areas), including training actions and direct and specialized support in the event of a risk or crisis.

In 2023, more than 1,400 trips made by employees from different countries were monitored through the "Traveling with you" website published on the Group's Intranet. In addition, security and fire protection systems have been installed and maintained in 186 buildings. More than 448 emergency drills were carried out over the course of the year, with more than 2,329 employees receiving training in this area.

Business continuity

In terms of availability, business continuity solutions are designed and implemented to guarantee the maintenance of services provided to clients in the event of a serious contingency materializing, thereby contributing to operational resilience and the continuity of services provided.

It should be noted that in 2023 AENOR granted ISO 22301 Business Continuity Management Systems certification to MAPFRE insurance companies located in Peru and Malta, as well as to MAPFRE TECH. In addition to the new certifications, MAPFRE ESPAÑA, MAPFRE RE, MAPFRE Global Risks, MAPFRE Inversión, MAPFRE Portugal, MAPFRE Mexico, MAPFRE Turkey, MAPFRE Puerto Rico, MAPFRE BHD (Dominican Republic), MAPFRE Honduras, MAPFRE Panama, MAPFRE Costa Rica, MAPFRE Investientos (Brazil), Solunion and the Global SOC of the MAPFRE Group all either renewed or maintained the certifications attained in previous years. This means that 68.7% of MAPFRE Group premiums are backed by Business Continuity Plans certified under ISO 22301. which, beyond demonstrating the utmost regulatory compliance in this area, supports and demonstrates MAPFRE's commitment to its clients and the services it provides them with.

In addition, and in compliance with the defined planning, in 2023, specific testing of the Data Center Disaster Recovery Plans were carried out, together with testing of all the Business Continuity Plans of the companies, designed to test the capabilities of digital operational resilience in the event of a major disaster or catastrophe. Partial contingency tests were also conducted to test high availability and mutual backup capabilities between Data Centers, as well as information recovery, against potential events that could cause the failure of specific services and critical elements.

Finally, it should be noted that in 2023 a program was launched related to cyber crisis exercises in a number of Group companies by their local Crisis Committees. Specific material was developed to support and guide the performance of these cyber incident simulations by the Crisis Committees of the different companies. These exercises have already been completed by the Crisis Committees in Argentina, Puerto Rico, Germany and Colombia. The material delivered incorporates the main lessons learned from the real incidents suffered previously, thereby ensuring the proper training of our managers in how to manage this type of situation.

Note 11. Prevention and compliance measures in Data privacy

To comply with due diligence regarding data privacy, MAPFRE has the following prevention and compliance measures in place.

Prevention measures

MAPFRE has established a corporate reference model for privacy and data protection to guarantee compliance with its obligations. The model develops and implements various measures to guarantee compliance with data processing principles: "lawfulness, loyalty and transparency," "purpose limitation," "data minimization," "accuracy," "integrity and confidentiality" and "proactive responsibility." Using the GDPR as a reference, the model adapts to the different applicable regulations, monitoring and analyzing the different rulings of the regulators, in order to guarantee the alignment of the corporate criteria with them and taking into account, in a timely and proper manner, the rights of the interested parties. Through this reference model, the MAPFRE Group ensures compliance with a common and homogeneous protection standard throughout the Group, which will be complemented by the adherence of the various Group companies to the Binding Corporate Standards (BCR) that have been developed and presented to the Spanish Data Protection Agency.

MAPFRE has a Corporate Data Protection Officer and an area specifically dedicated to ensuring privacy and personal data protection. As well as a Corporate Privacy and Data Protection Committee, which acts as an advisory and support body to the DPO in the performance of its functions. In countries where MAPFRE is present and the legislation requires this figure, there is local Data Protection Officer and their respective Privacy and Data Protection Committees, functionally dependent on corporate counterparts.

MAPFRE has a Corporate Office for Data Protection and Privacy (CODP), a body that centralizes the response to the exercise of the rights of EU citizens in which MAPFRE operates, in order to guarantee their appropriate and timely satisfaction. It is the point of reference for activities in this area, providing a single, global vision, making it possible to standardize the processes and criteria related to this matter.

Compliance measures

With regard to the processes associated with compliance with current legislation on data protection, a permanent analysis is carried out of the different pronouncements issued by the different regulators, especially European regulators, to incorporate them, if necessary, into the affected processes.

MAPFRE monitors the use of its clients' data for purposes secondary to the contractual relationship, and in 2023, 19.2% of its clients were contacted for secondary purposes.

Furthermore, all employees are aware of the obligations to guarantee, among other aspects, the confidentiality of information and compliance with data protection regulations, established in the MAPFRE Code of Ethics and Conduct, as well as in its Telematic Code, the possibility that, in the event of a breach of these principles, the corresponding penalties may be adopted according to the current disciplinary system

The disciplinary measures applicable to employees for this type of noncompliance depend on various factors, such as the country, the applicable local legislation or collective bargaining agreement, and the severity and/or recidivism in the commission of such conduct that goes against MAPFRE's policies. Notwithstanding the foregoing, in general terms the sanctions that can be imposed are usually: written warning or warning in mild cases, suspension of employment and salary in severe cases, and disciplinary dismissal in very serious cases.

As an active third-party risk management, third-party security and privacy requirements proportional to the risk of the services they provide for the MAPFRE Group are transferred to providers, in order to guarantee homogeneous protection of corporate assets and operational resilience.

Additionally, compliance audits of the GDPR and privacy and data protection regulations are carried out, following the annual audit plans. In 2023, more than 28 audits of the aforementioned audits were carried out by external companies specialized in them.

					Tax on earnings
Country	Third-party revenue	Linked entity revenue	Total revenue	Earnings before tax	Paid	Accrued
GERMANY	889,540,195	1,120,000	890,660,195	13,551,807	-615,019	-6,892,510
ALGERIA	-10,000	0 -10,000		-1,801,981	0 0
ARGENTINA	336,643,382	0	336,643,382	-7,312,970	-3,541,274	-2,262,425
BELGIUM	209,847,364	0	209,847,364	36,390,089	-11,000,000	-9,178,872
BRAZIL	6,136,291,872	3,275	6,136,295,147	999,749,582	-227,038,165	-237,403,424
CHILI	639,410,035	268,197	639,678,231	17,457,516	4,083,170	-3,208,575
CHINA	18,303	0	18,303	1,246,304	0	0
COLOMBIA	698,874,982	5,039,721	703,914,703	-108,101	-70,354,614	12,163,396
COSTA RICA	95,902,913	0	95,902,913	2,538,623	-1,338,443	-727,043
ECUADOR	102,095,301	0	102,095,301	-4,119,243	-47,906	394,580
USA	3,037,233,162	15,228,151	3,052,461,313	-30,539,439	-7,700,366	5,953,620
EGYPT	2,398	0	2,398	-229,714	0	0
THE SAVIOR	122,442,790	1,400,417	123,843,207	7,180,886	-169,971	-2,051,667
SPAIN	7,130,398,581	5,798,940,890	12,929,339,472	463,363,908	-9,537,749	-87,290,455
FRANCE	388,523,697	0	388,523,697	-2,543,420	-1,419,255	-1,181,459
GREECE	0	0	0	0	0	0
GUATEMALA	134,169,848	0	134,169,848	6,001,680	-678,087	-1,197,994
HONDURAS	137,352,345	0	137,352,345	5,456,991	-1,430,866	-2,002,154
HUNGARY	3,908,814	0	3,908,814	364,661	-33,737	-33,154
INDIA	1,242	0	1,242	147,920	0	0
IRELAND	50,949,873	0	50,949,873	-1,236,664	-26,300	160,356
ITALY	576,123,324	0	576,123,324	-139,207,814	-1,011,532	20,850,988
MALAYSIA	13,180,185	0	13,180,185	5,321,967	0	-1,380,258
MALT	366,990,524	2,307,000	369,297,524	24,798,042	-44,932,974	-8,388,693
MEXICO	2,561,558,717	0	2,561,558,717	64,157,755	-13,912,253	-15,146,848
NICARAGUA	23,874,245	0	23,874,245	2,805,202	-592,881	-805,190
PANAMA	291,784,476	9,158,626	300,943,102	-6,708,239	0	-1,005,094
PARAGUAY	85,882,125	0	85,882,125	7,635,457	0	-769,853
PERU	1,018,146,299	0	1,018,146,299	15,900,843	-5,139,954	-2,107,448
PORTUGAL	236,064,653	2,350	236,067,003	11,548,416	978,037	-2,712,376
PUERTO RICO	402,506,211	0	402,506,211	36,452,344	-124,523	-10,410,245
UNITED KINGDOM	493,184,104	0	493,184,104	34,047,873	-581,700	-6,469,096
DOMINICAN R.	513,136,642	0	513,136,642	23,449,326	3,906,419	-6,097,677
SINGAPORE	98,587,872	0	98,587,872	17,422,380	-1,106,893	-3,150,298
TUNISIA	16,413,284	0	16,413,284	-228,795	-228,855	-584,326
TURKEY	543,432,459	0	543,432,459	29,248,958	-253,391	-6,445,782
URUGUAY	182,554,824	0	182,554,824	14,859,015	-1,575,297	-1,698,777
VENEZUELA	20,516,717	0	20,516,717	668,505	12,916	-19,705
TOTAL	27,557,533,755		5,833,468,627 33,391,002,382	1,647,729,671	-395,411,462	-381,098,459

Note 12. Main tax information by country - table continues on next page

Country	Capital and issuing premium	Gross reserves Employees		Tangible assets other than cash	Nominal tax rate
GERMANY	29,145,000	166,463,144	527	4,641,088	30 %
ALGERIA	0	1,373,929	47	0	26 %
ARGENTINA	249,561,770	191,766,977	984	18,325,686	25 %
BELGIUM	0	0	11	258,603	25 %
BRAZIL	1,094,922,150	1,293,738,656	4916	122,658,056	34 %
CHILI	73,539,937	94,312,906	429	5,847,144	27 %
CHINA	398,440	-29,585,305	4	0	25 %
COLOMBIA	239,671,409	-19,187,550	1016	18,331,470	35 %
COSTA RICA	15,654,191	445,620	90	9,030,688	30 %
ECUADOR	6,385,059	-648,327	240	4,230,333	25 %
USA	0	50,057,924	2055	59,664,717	21 %
EGYPT	0	-1,640,747	0	0	23 %
THE SAVIOR	19,951,071	1,214,432	185	7,360,214	30 %
SPAIN	-2,125,608,001	5,978,471,966	11505	1,473,115,382	25 %
FRANCE	0	0	32	73,910	25 %
GREECE	0	112,321	0	0	22 %
GUATEMALA	4,097,838	416,702	181	2,383,779	25 %
HONDURAS	6,970,668	1,384,623	213	2,948,858	25 %
HUNGARY	0	0	6	1,711	9 %
INDIA	0	-5,888,767	0	0	35 %
IRELAND	0	-16,000	127	900,433	13 %
ITALY	205,823,000	-4,333,114	600	12,056,590	24 %
MALAYSIA	0	0	0	0	24 %
MALT	20,007,900	117,243,697	353	125,219,975	35 %
MEXICO	213,785,585	-5,919,312	1860	60,777,907	30 %
NICARAGUA	4,743,689	1,868,219	122	924,114	30 %
PANAMA	229,115,865	43,578,069	495	7,226,480	25 %
PARAGUAY	19,712,092	29,405,157	195	9,634,343	10 %
PERU	133,480,078	35,733,201	1407	93,614,771	30 %
PORTUGAL	36,088,198	40,384,605	445	30,869,694	21 %
PUERTO RICO	89,201,034	126,577,137	530	43,263,370	38 %
UNITED KINGDOM	0	0	12	930,325	25 %
DOMINICAN R.	17,503,000	95,150,507	1073	35,124,030	27 %
SINGAPORE	0	0	9	66,004	17 %
TUNISIA	0	3,313,569	69	308,369	15 %
TURKEY	237,532,190	241,144,170	633	35,821,651	25 %
URUGUAY	14,990,051	721,299	160	2,341,150	25 %
VENEZUELA	978,012,449	-212,753,583	342	5,265,275	34 %
TOTAL	1,814,684,664	8,234,906,126	30873	2,193,216,118	---

Figures in euros

The companies that make up the Group and their main activities are detailed in Appendix 1 and 2 of the Consolidated Annual Accounts of MAPFRE S.A. The subsidies received by MAPFRE during the year are not significant.

Regarding the presence of MAPFRE in financial centers classified by the IMF as extraterritorial and/or in those jurisdictions considered by the OECD as non-compliant or partially compliant, the provisions of action guidelines 2 and 4 of the Fiscal Policy apply, (https://www.mapfre.com/en/corporategovernance/), duly aligned with the principles and recommendations of the Code of Best Tax Practices.

8.3. Table of contents GRI

Statement of use	MAPFRE S.A. prepared this report in line with GRI Standards for the period 1 January, 2023 to 31 December, 2023.
GRI 1 used	GRI 1: Foundation 2021
Applicable GRI Sector Standard(s)	Not applicable

GRI standard	Disclosure	Location	Other references
	2-1 Organizational details	a) Page 1, Integrated Report 2023 cover
		b) Page 12, 1.4. Our structure
		c) Consolidated Management Report 2023 / 1. General information regarding the company and its activities. Document available on the corporate website www.mapfre.com
		d) Page 8, 1.1. Our activity Page 11, 1.3. Business model and geographic footprint (deployment)
		a) Page 12, 1.4. Our structure
GRI 2: General Disclosures 2021	2-2 Entities included in the organization's sustainability reporting	b) Page 18, 1.7. Main milestones and key figures Page 43, 3. Risk management Page 189, 8.1. Basis of preparation and presentation of the report
		c) i) Page 12, 1.4.2. Functional structure Page 32, 1.7.2.3. Relevant facts
		c) ii) Page 185, 7.7.4. Responsible and transparent with taxation
		c) iii) Page 61, 4.2. Materiality: Our priorities
		c) Appendix I of the Consolidated Annual Accounts and Consolidated Management Report reflects the participation and the consolidation method used for each entity (global integration, equity-accounted method). Likewise, in the Consolidated Statement of Income and Comprehensive Income of MAPFRE S.A., the result attributable to the controlling company and the result attributable to non-controlling interests are separated. Document available on the corporate website www.mapfre.com
	2-3 Reporting period, frequency and contact point	a) Page 189, 8.1. Basis of preparation and presentation of the report
		b) Page 189, 8.1. Basis of preparation and presentation of the report
		c) Page 189, 8.1. Basis of preparation and presentation of the report
		d) Page 189, 8.1. Basis of preparation and presentation of the report
	2-4 Restatements of information	Page 189, 8.1. Basis of preparation and presentation of the report

GRI standard	Disclosure	Location	Other references
	2-5 External assurance	a) Page 189, 8.1. Basis of preparation and presentation of the report 2. Corporate governance
		b) i) Page 189, 8.1. Basis of preparation and presentation of the report Integrated Report Independent Verification Report
		b) ii) Page 189, 8.1. Basis of preparation and presentation of the report Integrated Report Independent Verification Report
		b) iii) Page 189, 8.1. Basis of preparation and presentation of the report Integrated Report Independent Verification Report
		a) Page 7, We are MAPFRE
	2-6 Activities, value chain and other business relationships	b) i) Page 7, We are MAPFRE
		b) ii) Page 118, 5.2. We generate business for our providers	SDG 12
		b) Page 126, 5.3. Protecting our clients
		c) Page 118, 5.2. We generate business for our providers Page 143, 5.6. Our footprint, shared value
		d) Page 32, 1.7.2.3. Relevant facts
		a) Page 90, 5.1. Developing our people
		b) i) Page 90, 5.1. Developing our people
		b) ii) Page 90, 5.1. Developing our people
		b) iii) There are no employees without guaranteed hours
	2-7 Employees	b) iv) 8.2. Notes on additional information / page 214, Note 5. People and Organization indicators / page 214, Note 5.1. New hires and employee departures by job position level	SDG 8, 17
		b) v) 8.2. Notes on additional information / page 214, Note 5. People and Organization indicators / page 214, Note 5.1. New hires and employee departures by job position level
		v) Page 104, 5.1.4. Health and Well-being
GRI 2: General Disclosures (2021)		c) i) 8.2. Notes on additional information / page 214, Note 5. People and Organization indicators / page 214, Note 5.1. New hires and employee departures by job position level
		c) ii) Page 90, 5.1. Developing our people
		d) Page 90, 5.1. Developing our people
		e) Page 90, 5.1. Developing our people
		a) i) Page 92, 5.1.1. Talent	SDG 8, 17
	2-8 Workers who	a) ii) Page 92, 5.1.1. Talent
	are not	b) i) Page 126, 5.3. Protecting our clients
	employees	b) ii) Page 126, 5.3. Protecting our clients
		c) iii) Page 126, 5.3. Protecting our clients
		a) Page 35, 2.1. Governance structure	SDG 5, 16
		b) Page 35, 2.1. Governance structure
		c) i) Page 38, 2.2. Diversity and experience
		c) ii) Page 35, 2.1. Governance structure
	2-9 Governance structure and	c) iii) The seniority of the members of the Board of Directors can be consulted at the corporate website www.mapfre.com
	composition	c) iv) Page 35, 2.1. Governance structure
		c) v) Page 38, 2.2. Diversity and experience
		c) vi) Page 38, 2.2. Diversity and experience
		c) vii) Page 38, 2.2. Diversity and experience
		c) viii) Page 38, 2.2. Diversity and experience
		a) Page 35, 2.1. Governance structure	SDG 5, 16
	2-10 Nomination	b) i) Page 35, 2.1. Governance structure
	and selection of the highest	b) ii) Page 35, 2.1. Governance structure
	governance body	b) iii) Page 35, 2.1. Governance structure
		b) iv) Page 35, 2.1. Governance structure
	2-11 Chair of the highest	a) Page 35, 2.1. Governance structure	SDG 16
	governance body	b) Page 35, 2.1. Governance structure

GRI standard	Disclosure	Location	Other references
			Principles
	2-12 Role of the highest governance body	a) Page 44, 3.1.1. Risk Management System Governance	1-10 of the Global Compact
	in overseeing the	b) i) Page 35, 2.1. Governance structure	SDG 16
	management of impacts	b) ii) Page 44, 3.1.1. Risk Management System Governance
		c) Page 44, 3.1.1. Risk Management System Governance
	2-13 Delegation of responsibility for managing impacts	a) i) Page 35, 2.1. Governance structure	Principles 1-10 of the Global
		a) ii) Page 35, 2.1. Governance structure
		b) Page 35, 2.1. Governance structure	Compact
	2-14 Role of the highest governance body in sustainability reporting	a) Page 189, 8.1.1. About this report Page 61, 4.2. Materiality: Our priorities	Principles 1-10 of the
		b) Page 189, 8.1.1. About this report Page 61, 4.2. Materiality: Our priorities	Global Compact
		a) Page 38, 2.2. Diversity and experience
		Conflict of Interest Management Policy and section D.6 of the Annual Corporate Governance Report. Information available on the corporate website www.mapfre.com
		b) i) Page 35, 2.1. Governance structure
	2-15 Conflicts of	Corporate Governance system Listed in the CVs of the Board Directors and in sections A.6, C.1.10, C.1.11 y C.1.12 of the Annual Corporate Governance Report on the Company's website www.mapfre.com	SDG 16
	interest	b) ii) For more information on board directors' shareholdings in MAPFRE, please see www.mapfre.com
		b) iii) Significant shareholdings are detailed on the corporate website www.mapfre.com
GRI 2: General Disclosures (2021)		b) iv) Listed in the Report on Related-Party Transactions for the year, published on the occasion of the Annual General Meeting, in section D of the Annual Corporate Governance Report and in note 6.21 of the Consolidated Annual Accounts. Documents available on the corporate website www.mapfre.com
	2-16 Communication of critical concerns	a) Page 186, 7.4.2. Fiscal control and risk management; Page 137, 5.3.5.2. Grievances and complaints	SDG 16
		b) Page 255, 8.3. Table of contents GRI	Principles 1-10 of the Global Compact
	2-17 Collective knowledge of the highest governance body	a) Information on the knowledge the Board of Directors must possess is detailed in section C.1.5 of the Annual Corporate Governance Report. Document available on the corporate website www.mapfre.com
		a) Page 97, 5.1.1.9. Performance evaluation; Page 255, 8.3. Table of contents GRI	SDG 16
	2-18 Evaluation of the performance	b) Page 97, 5.1.1.9. Performance evaluation
	of the highest governance body	c) Listed in sections C.1.17 and C.1.18 and in recommendation 36 of the Annual Corporate Governance Report and in Title I. Board of Director and Title II. Steering and Delegate Committees of the MAPFRE Board of Directors regulations. Document available on the corporate website www.mapfre.com
		a) ii) Page 101, 5.1.3. Remuneration, benefits and recognition / Page 40, 2.3. Remuneration system
		a) iii) Information contained in the Remuneration Policy for Board Directors 2022-2024 and in the Annual Report on Directors' Remuneration. Documents available on the corporate website www.mapfre.com
		a) iv) Information contained in the Remuneration Policy for Board Directors 2022-2024 and in the Annual Report on Directors' Remuneration. Documents available on the corporate website www.mapfre.com
		a) v) Information contained in the Remuneration Policy for Board Directors 2022-2024 and in the Annual Report on Directors' Remuneration. Documents available on the corporate website www.mapfre.com
		b) Page 171, 7.1.2. Internal control system

GRI			Other
standard	Disclosure	Location	references
	2-20 Process to determine remuneration	a) i) Page 40, 2.3. Remuneration system
		Detailed in section 1. Introduction of the Remuneration Policy for Board Directors and in section A.1.1. of the Annual report on directors' remuneration. Documents available on the corporate website www.mapfre.com
		a) ii) Page 40, 2.3. Remuneration system
		Detailed in sections 1. Introduction and 2. General Principles of the Remuneration Policy for Board Directors, as well as in section A.4 of the Annual report on directors' remuneration Documents available on the corporate website www.mapfre.com
		a) iii) Page 35, 2.1. Governance structure / Page 40, 2.3. Remuneration system
GRI 2: General Disclosures (2021)		External advice has not been used for this purpose, but external reports have been taken into account. This information and the participation, where appropriate, of external advisers is detailed in section A.1.1. of the Annual report on directors' remuneration. Document available on the corporate website www.mapfre.com
		b) Information detailed in section B.4 of the Annual report on directors' remuneration. In addition, the Annual General Meeting section publishes the results of the voting on the proposals of the Meeting. Document available on the corporate website www.mapfre.com
	2-21 Annual total compensation ratio	a) 8.2. Notes on additional information / page 214, Note 5. People and Organization indicators / page 220, Note 5.2. Information on remuneration	Principles
		b) 8.2. Notes on additional information / page 214, Note 5. People and Organization indicators / page 220, Note 5.2. Information on remuneration	1,2, 3, 4, 6, 10 of the Global Compact
		c) 8.2. Notes on additional information / page 214, Note 5. People and Organization indicators / page 220, Note 5.2. Information on remuneration
	2-22 Statement on sustainable development strategy	a) CEO letter; Page 35, 2.1. Governance structure

GRI standard	Disclosure	Location	Other references
		a) i) Page 166, 7.1. Our principles: due diligence, control and compliance / 8.2. Notes on additional information, page 245, Note 9. Principles of the Global Compact and prevention and compliance measures in human rights
		a) ii) Page 166, 7.1.1. Due diligence / 8.2. Notes on additional information, page 245, Note 9. Principles of the Global Compact and prevention and compliance measures in human rights
		a) iii) Page 166, 7.1.1. Due diligence
	2-23 Policy commitments	a) iv) Page 166, 7.1.1. Due diligence	SDG 13, 16
		b) i) Page 176, 7.2.2. Respect for human rights
		b) ii) Page 176, 7.2.2. Respect for human rights
		c) Page 166, 7.1. Our principles: due diligence, control and compliance
		d) Page 166, 7.1. Our principles: due diligence, control and compliance
		e) Page 166, 7.1. Our principles: due diligence, control and compliance
		f) Page 166, 7.1. Our principles: due diligence, control and compliance
	2-24 Embedding	a) i) Page 171, 7.1.2. Internal control system
	policy	a) ii) Page 171, 7.1.2. Internal control system	SDG 16, 17
	commitments	a) iii) Page 174, 7.2. We safeguard ethical behavior
		a) iv) Page 174, 7.2. We safeguard ethical behavior
		a) 8.2. Notes on additional information, page 245, Note 9. Principles of the Global Compact and prevention and compliance measures in human rights
		b) Page 170, 7.1.1.3. Consultation and whistleblower channels
		c) Page 174, 7.2.1.1. Procedures initiated by MAPFRE in relation to work conduct contrary to the Code of Ethics and Conduct;
	2-25 Processes to remediate negative impacts	Page 176, 7.2.2.1. Human rights across the value chain; Page 177, 7.2.2.2. Protection of employees from psychological and sexual harassment in the workplace;	SDG 16
		d) Page 167, 7.1.1.1. Due diligence in human rights and the environment
GRI 2: General Disclosures (2021)		e) Page 170, 7.1.1.3. Consultation and whistleblower channels; Page 175, 7.2.1.2. Activity of the consultation and whistleblower channels pertaining to the Code of Ethics and Conduct; Page 180, 7.2.3.4. Financial and Accounting Whistleblower channel
	2-26 Mechanisms for seeking advice and raising concerns	a) i) ii) Page 170, 7.1.1.3. Consultation and whistleblower channels;	Principles 1-10 of the Global Compact
		a) i) Page 169, 7.1.1.2. Criminal Risk Prevention Model; Page 183, 7.3.2. Data privacy	SDG 16
	2-27 Compliance with laws and regulations	a) ii) Page 169, 7.1.1.2. Criminal Risk Prevention Model; Page 183, 7.3.2. Data privacy	Principles 7, 8 , 9, 10 of the Global Compact
		b) i) Page 169, 7.1.1.2. Criminal Risk Prevention Model; Page 183, 7.3.2. Data privacy
		b) ii) Page 169, 7.1.1.2. Criminal Risk Prevention Model; Page 183, 7.3.2. Data privacy
		c) Page 169, 7.1.1.2. Criminal Risk Prevention Model; Page 183, 7.3.2. Data privacy
		d) The sanctions received and/or paid in 2023 do not exceed the threshold of 1% of the net equity of the registered company. This threshold is considered by the Company as the criterion of financial significance.
	2-28 Membership associations	a) 8.2. Notes on additional information / page 235, Note 7. Collaboration and participation in industry and trade organizations	SDG 17
	2-29 Approach to stakeholder engagement	a) i) Page 62, 4.2.2. Phases and result: double materiality matrix; Page 88, 5. Committed to stakeholders	SDG 17
		a) ii) Page 46, 3.1.2. Stakeholder participation in risk identification; Page 62, 4.2.1. Approach, process and methodology; Page 88, 5. Committed to stakeholders	Principles 1-10 of the Global Compact
		a) iii) Page 62, 4.2.1. Approach, process and methodology; Page 88, 5. Committed to stakeholders; 8.2. Notes on additional information, page 235, Note 7. Collaboration and participation in industry and trade organizations / Page 238, Framework for responsible institutional relations

GRI standard	Disclosure	Location	Other references
Disclosures (2021) GRI 2: General	2-30 Collective bargaining agreements	a) Page 101, 5.1.3. Remuneration, benefits and recognition; Page 117, 5.1.6.1. Legal representation of workers;	Principles 1,2, 3, 4, 6 of the Global Compact
		b) Page 101, 5.1.3. Remuneration, benefits and recognition; Page 117, 5.1.6.1. Legal representation of workers; 8.2. Notes on additional information / page 214, Note 5. People and Organization indicators / page 220, Note 5.2. Information on remuneration	SDG 8

GRI standard	Disclosure	Location	Other references
GRI 3: Material Topics (2021)	3-1 Process to determine material topics	a) Page 61, 4.2. Materiality: Our priorities
		b) Page 61, 4.2. Materiality: Our priorities
	3-2 List of material topics	a) Page 61, 4.2. Materiality: Our priorities
		b) Page 61, 4.2. Materiality: Our priorities
	CUSTOMER PROTECTION
GRI 3: Material Topics (2021)	3-3 Management of material topics	a) Page 62, 4.2.2. Phases and result: double materiality matrix; 8.2. Notes on additional information, page 194, Note 2. Material topics
		b) Page 62, 4.2.2. Phases and result: double materiality matrix; 8.2. Notes on additional information, page 194, Note 2. Material topics
		c) Page 126, 5.3.2. Foundations of the Customer Experience; 8.2. Notes on additional information, page 194, Note 2. Material topics
		d) i) Page 126, 5.3.2. Foundations of the Customer Experience; 8.2. Notes on additional information, page 194, Note 2. Material topics
		d) ii) Page 126, 5.3.2. Foundations of the Customer Experience; 8.2. Notes on additional information, page 194, Note 2. Material topics
		d) iii) Page 126, 5.3.2. Foundations of the Customer Experience; 8.2. Notes on additional information, page 194, Note 2. Material topics
		e) i) Page 128, 5.3.3. Our products; 8.2. Notes on additional information, page 194, Note 2. Material topics
		e) ii) iii) Page 128, 5.3.3. Our products; 8.2. Notes on additional information, page 194, Note 2. Material topics
		e) iv) iv) Page 171, 7.1.2. Internal control system
		f) 8.2. Notes on additional information, page 194, Note 2. Material topics

GRI standard	Disclosure	Location	Other references
	INNOVATION AND DIGITALIZATION
GRI 3: Material Topics (2021)	3-3 Management	a) Page 62, 4.2.2. Phases and result: double materiality matrix; 8.2. Notes on additional information, page 194, Note 2. Material topics
		b) Page 129, 5.3.4. Distribution channels; 8.2. Notes on additional information, page 194, Note 2. Material topics
		c) Page 145, 5.6.2. Contribution to Agenda 2030; Information available on the corporate website www.mapfre.com/en
		d) i) Page 140, 5.5. Innovation and digitalization in products and services and processes
		d) ii) Page 140, 5.5. Innovation and digitalization in products and services and processes
	of material topics	d) iii) Page 140, 5.5. Innovation and digitalization in products and services and processes
		e) i) Page 140, 5.5. Innovation and digitalization in products and services and processes
		e) ii) Page 140, 5.5. Innovation and digitalization in products and services and processes
		e) iii) Page 140, 5.5. Innovation and digitalization in products and services and processes
		e) iv) Page 171, 7.1.2. Internal control system
		f) 8.2. Notes on additional information, page 194, Note 2. Material topics
ADAPTATION OF THE BUSINESS TO CLIMATE CHANGE
		a) 8.2. Notes on additional information, page 194, Note 2. Material topics
	3-3 Management of material topics	b) Page 75, 4.5. Our business and sustainability; 8.2. Notes on additional information, page 192, Note 1. Emerging risks; MAPFRE Group TCFD 2023 Report. Document available on the corporate website www.mapfre.com
		c) 8.2. Notes on additional information, page 194, Note 2. Material topics; MAPFRE Group TCFD 2023 Report. Document available on the corporate website www.mapfre.com
		d) i) 8.2. Notes on additional information, page 194, Note 2. Material topics; MAPFRE Group TCFD 2023 Report. Document available on the corporate website www.mapfre.com
GRI 3: Material Topics (2021)		d) ii) 8.2. Notes on additional information, page 194, Note 2. Material topics; MAPFRE Group TCFD 2023 Report. Document available on the corporate website www.mapfre.com
		d) iii) 8.2. Notes on additional information, page 194, Note 2. Material topics; MAPFRE Group TCFD 2023 Report. Document available on the corporate website www.mapfre.com
		e) i) Page 75, 4.5. Our business and sustainability, Page 152, 6.1. Action strategy against climate change; 8.2. Notes on additional information, page 194, Note 2. Material topics; MAPFRE Group TCFD 2023 Report. Document available on the corporate website www.mapfre.com
		e) ii) Page 75, 4.5. Our business and sustainability; Page 154, 6.2. Our Environmental Footprint Plan; 8.2. Notes on additional information, page 194, Note 2. Material topics; MAPFRE Group TCFD 2023 Report. Document available on the corporate website www.mapfre.com
		e) iii) Page 75, 4.5. Our business and sustainability; Page 154, 6.2. Our Environmental Footprint Plan; 8.2. Notes on additional information, page 194, Note 2. Material topics; MAPFRE Group TCFD 2023 Report. Document available on the corporate website www.mapfre.com
		e) iv) Page 171, 7.1.2. Internal control system
		f) 8.2. Notes on additional information, page 194, Note 2. Material topics

GRI 201: Economic Performance (2016)	201-2 Financial implications and other risks and opportunities due to climate change	a) i) Page 75, 4.5. Our business and sustainability; MAPFRE Group TCFD 2023 Report. Document available on the corporate website www.mapfre.com	Principles 7, 8, 9 of the Global Compact
		a) ii) Page 75, 4.5. Our business and sustainability; MAPFRE Group TCFD 2023 Report. Document available on the corporate website www.mapfre.com	SDG 13
		a) iii) Page 75, 4.5. Our business and sustainability; MAPFRE Group TCFD 2023 Report. Document available on the corporate website www.mapfre.com
		a) iv) Page 75, 4.5. Our business and sustainability; MAPFRE Group TCFD 2023 Report. Document available on the corporate website www.mapfre.com
		a) v) Page 75, 4.5. Our business and sustainability; MAPFRE Group TCFD 2023 Report. Document available on the corporate website www.mapfre.com
	CYBER SECURITY AND PRIVACY
		a) 8.2. Notes on additional information, page 194, Note 2. Material topics
		b) Page 181, 7.3. We promote cybersecurity and protect data privacy
		c) 8.2. Notes on additional information, page 194, Note 2. Material topics
	3-3 Management of material topics	d) i) 8.2. Notes on additional information, page 194, Note 2. Material topics; 8.2. Notes on additional information, page 249, Note 10. Cybersecurity and
		business continuity; 8.2. Notes on additional information, page 250, Note 11. Prevention and compliance measures in Data privacy
GRI 3: Material Topics (2021)		d) ii) 8.2. Notes on additional information, page 194, Note 2. Material topics; 8.2. Notes on additional information, page 249, Note 10. Cybersecurity and business continuity; 8.2. Notes on additional information, page 250, Note 11. Prevention and
		compliance measures in Data privacy
		d) iii) 8.2. Notes on additional information, page 194, Note 2. Material topics; 8.2. Notes on additional information, page 249, Note 10. Cybersecurity and business continuity;
		8.2. Notes on additional information, page 250, Note 11. Prevention and compliance measures in Data privacy
		e) i) Page 171, 7.1.2. Internal control system; Page 183, 7.3.2. Data privacy
		e) ii) Page 171, 7.1.2. Internal control system; Page 183, 7.3.2. Data privacy
		e) iii) Page 171, 7.1.2. Internal control system; Page 183, 7.3.2. Data privacy
		e) iv) Page 171, 7.1.2. Internal control system
		f) 8.2. Notes on additional information, page 194, Note 2. Material topics
GRI 418: Customer Privacy (2016)	418-1 Substantiated complaints concerning breaches of customer privacy and losses of	a) b) c) Page 183, 7.3.2. Data privacy 8.2. Notes on additional information, page 250, Note 11. Prevention and compliance measures in Data privacy	Principle 1, 2, 3, 10 of the Global Compact
	customer data		SDG 16

SUTAINABILITY PRODUCTS AND SERVICES
		a) 8.2. Notes on additional information, page 194, Note 2. Material topics
GRI 3: Material Topics (2021)		b) Page 75, 4.5. Our business and sustainability; Page 126, 5.3. Protecting our clients; MAPFRE Group TCFD 2023 Report. Document available on the corporate website www.mapfre.com
		c) 8.2. Notes on additional information, page 194, Note 2. Material topics
	3-3 Management of material topics	d) i) Page 75, 4.5. Our business and sustainability; Page 126, 5.3. Protecting our clients; 8.2. Notes on additional information, page 194, Note 2. Material topics; MAPFRE Group TCFD 2023 Report. Document available on the corporate website www.mapfre.com
		d) ii) Page 75, 4.5. Our business and sustainability; Page 126, 5.3. Protecting our clients; 8.2. Notes on additional information, page 194, Note 2. Material topics; MAPFRE Group TCFD 2023 Report. Document available on the corporate website www.mapfre.com
		d) iii) Page 75, 4.5. Our business and sustainability; Page 126, 5.3. Protecting our clients; 8.2. Notes on additional information, page 194, Note 2. Material topics; MAPFRE Group TCFD 2023 Report. Document available on the corporate website www.mapfre.com
		e) i) Page 75, 4.5. Our business and sustainability; Page 126, 5.3. Protecting our clients; 8.2. Notes on additional information, page 194, Note 2. Material topics; MAPFRE Group TCFD 2023 Report. Document available on the corporate website www.mapfre.com
		e) ii) Page 75, 4.5. Our business and sustainability; Page 126, 5.3. Protecting our clients; 8.2. Notes on additional information, page 194, Note 2. Material topics; MAPFRE Group TCFD 2023 Report. Document available on the corporate website www.mapfre.com
		e) iii) Page 75, 4.5. Our business and sustainability; Page 126, 5.3. Protecting our clients; 8.2. Notes on additional information, page 194, Note 2. Material topics; MAPFRE Group TCFD 2023 Report. Document available on the corporate website www.mapfre.com
		e) iv) Page 171, 7.1.2. Internal control system
		f) 8.2. Notes on additional information, page 194, Note 2. Material topics
GRI 201: Economic Performance (2016)	201-2 Financial implications and other risks and opportunities due to climate change	a) i) Page 75, 4.5. Our business and sustainability; Page 126, 5.3. Protecting our clients; MAPFRE Group TCFD 2023 Report. Document available on the corporate website www.mapfre.com	Principles 7, 8, 9 of the Global Compact
		a) ii) Page 75, 4.5. Our business and sustainability; Page 126, 5.3. Protecting our clients; MAPFRE Group TCFD 2023 Report. Document available on the corporate website www.mapfre.com	SDG 13
		a) iii) Page 75, 4.5. Our business and sustainability; Page 126, 5.3. Protecting our clients; MAPFRE Group TCFD 2023 Report. Document available on the corporate website www.mapfre.com
		a) iv) Page 75, 4.5. Our business and sustainability; Page 126, 5.3. Protecting our clients; MAPFRE Group TCFD 2023 Report. Document available on the corporate website www.mapfre.com
		a) v) Page 75, 4.5. Our business and sustainability; Page 126, 5.3. Protecting our clients; MAPFRE Group TCFD 2023 Report. Document available on the corporate website www.mapfre.com

GRI 203: Indirect Economic Impacts (2016)	203-2 Significant indirect economic impacts	a) Page 75, 4.5. Our business and sustainability; 8.2. Notes on additional information, page 198, Note 3. Sustainable products 8.2. Notes on additional information, page 199, Note 4. Alignment of the Taxonomy as per the EU b) Page 75, 4.5. Our business and sustainability; 8.2. Notes on additional information / page 198, Note 3. Sustainable products / page 199, Note 4. Alignment of the Taxonomy as per the EU	SDG 1, 8
	417-1 Requirements for product and service information and labeling	a) i) Page 126, 5.3. Protecting our clients;	SDG 12
		a) ii) Page 126, 5.3. Protecting our clients;
		a) iii) Page 126, 5.3. Protecting our clients;
GRI 417: Marketing and Labeling (2016)		b) Page 126, 5.3. Protecting our clients;
		The product description document is itself the policy contract and complies with current local regulations
	417-2 Incidents of non-compliance concerning product and service information and labeling	a) i) ii) iii) Page 137, 5.3.5.2. Grievances and complaints	Principle 10 of the Global Compact SDG 16
		The product description document is itself the policy contract and complies with current local regulations
	417-3 Incidents of non-compliance concerning marketing	During the 2023 fiscal year, there were no significant cases of non compliance with the regulations or the voluntary codes assumed by the company	Principle 10 of the Global Compact
	communications		SDG 16

ESG INVESTMENT
GRI 3: Material Topics (2021)	3-3 Management of material topics	a) 8.2. Notes on additional information, page 194, Note 2. Material topics; MAPFRE Group TCFD 2023 Report. Document available on the corporate website www.mapfre.com
		b) Page 75, 4.5.1. Integration of ESG aspects into MAPFRE's investment processes; 8.2. Notes on additional information / page 198, Note 3. Sustainable products / page 199, Note 4. Alignment of the Taxonomy as per the EU; MAPFRE Group TCFD 2023 Report. Document available on the corporate website www.mapfre.com
		c) Page 75, 4.5.1. Integration of ESG aspects into MAPFRE's investment processes; 8.2. Notes on additional information, page 194, Note 2. Material topics
		d) i) Page 75, 4.5.1. Integration of ESG aspects into MAPFRE's investment processes; 8.2. Notes on additional information, page 194, Note 2. Material topics; MAPFRE Group TCFD 2023 Report. Document available on the corporate website www.mapfre.com
		d) ii) Page 75, 4.5.1. Integration of ESG aspects into MAPFRE's investment processes; 8.2. Notes on additional information, page 194, Note 2. Material topics; MAPFRE Group TCFD 2023 Report. Document available on the corporate website www.mapfre.com
		d) iii) Page 75, 4.5.1. Integration of ESG aspects into MAPFRE's investment processes; 8.2. Notes on additional information, page 194, Note 2. Material topics; MAPFRE Group TCFD 2023 Report. Document available on the corporate website www.mapfre.com
		e) i) Page 75, 4.5.1. Integration of ESG aspects into MAPFRE's investment processes; 8.2. Notes on additional information, page 194, Note 2. Material topics; MAPFRE Group TCFD 2023 Report. Document available on the corporate website www.mapfre.com
		e) ii) Page 75, 4.5.1. Integration of ESG aspects into MAPFRE's investment processes; 8.2. Notes on additional information, page 194, Note 2. Material topics; MAPFRE Group TCFD 2023 Report. Document available on the corporate website www.mapfre.com
		e) iii) Page 75, 4.5.1. Integration of ESG aspects into MAPFRE's investment processes; 8.2. Notes on additional information, page 194, Note 2. Material topics; MAPFRE Group TCFD 2023 Report. Document available on the corporate website www.mapfre.com
		e) iv) Page 171, 7.1.2. Internal control system; MAPFRE Group TCFD 2023 Report. Document available on the corporate website www.mapfre.com
		f) 8.2. Notes on additional information, page 194, Note 2. Material topics
GRI 201: Economic Performance (2016)	201-2 Financial implications and other risks and opportunities due to climate change	a) i, ii, iii, iv, v) Page 75, 4.5.1. Integration of ESG aspects into MAPFRE's investment processes; MAPFRE Group TCFD 2023 Report. Document available on the corporate website www.mapfre.com	Principles 7, 8, 9 of the Global Compact SDG 13

TALENT MANAGEMENT
GRI 3: Material Topics (2021)	3-3 Management of material topics	a) Page 62, 4.2.2. Phases and result: double materiality matrix; 8.2. Notes on additional information, page 194, Note 2. Material topics
		b) Page 48, 3.2.1. Material risks; Page 92, 5.1.1. Talent; 8.2. Notes on additional information, page 194, Note 2. Material topics;
		c) Page 62, 4.2.2. Phases and result: double materiality matrix; Page 90, 5.1. Developing our people; Page 92, 5.1.1. Talent; 8.2. Notes on additional information, page 194, Note 2. Material topics International Commitments available on the corporate website www.mapfre.com
		d) i) Page 61, 4.2. Materiality: Our priorities; Page 90, 5.1. Developing our people; Page 92, 5.1.1. Talent; 8.2. Notes on additional information, page 194, Note 2. Material topics;
		d) ii) Page 61, 4.2. Materiality: Our priorities; Page 90, 5.1. Developing our people; Page 92, 5.1.1. Talent; 8.2. Notes on additional information, page 194, Note 2. Material topics
		d) iii) Page 61, 4.2. Materiality: Our priorities; Page 90, 5.1. Developing our people; Page 92, 5.1.1. Talent; 8.2. Notes on additional information, page 194, Note 2. Material topics
		e) i) Page 61, 4.2. Materiality: Our priorities; Page 92, 5.1.1. Talent; 8.2. Notes on additional information, page 194, Note 2. Material topics
		e) ii) Page 61, 4.2. Materiality: Our priorities; Page 92, 5.1.1. Talent; 8.2. Notes on additional information, page 194, Note 2. Material topics;
		e) iii) Page 61, 4.2. Materiality: Our priorities; 5Page 92, 5.1.1. Talent; 8.2. Notes on additional information, page 194, Note 2. Material topics
		e) iv) Page 44, 3.1. Integrated management model; Page 92, 5.1.1. Talent; Page 171, 7.1.2. Internal control system; 8.2. Notes on additional information, page 194, Note 2. Material topics;
		f) Page 46, 3.1.2. Stakeholder participation in risk identification; Page 61, 4.2. Materiality: Our priorities; Page 114, 5.1.6. The voice of MAPFRE people;

GRI 401: Employment (2016)	401-1 New employee hires and employee turnover	Page 90, 5.1. Developing our people	Principles 1, 2, 3, 6, 10 of the Global Compact
		Page 92, 5.1.1.1. Development plans
		8.2. Notes on additional information / page 214, Note 5. People and Organization indicators / page 214, Note 5.1. New hires and employee departures by job position level	SDG 5 8 10
		People and Organization 2023 report. Document available on the corporate website www.mapfre.com
	401-2 Benefits provided to full time employees that are not provided to temporary or part-time employees	Page 101, 5.1.3. Remuneration, benefits and recognition	SDG 3, 5, 8
		People and Organization 2023 report. Document available on the corporate website www.mapfre.com
	401-3 Parental leave	Page 104, 5.1.4. Health and Well-being	Principles 1, 2, 3, 6, 10 of the Global Compact
		People and Organization 2023 report. Document available on the corporate website www.mapfre.com	SDG 5, 8

GRI standard	Disclosure	Location	Other references
GRI 201: Economic Performance (2016)	201-1 Direct economic value generated and distributed	Page 18, 1.7. Main milestones and key figures Page 143, 5.6. Our footprint, shared value Consolidated Annual Report 2023. Document available on the corporate website www.mapfre.com	Principles 1 to 10 of the Global Compact SDG 1, 2, 5, 7, 8,
	201-2 Financial implications and other risks and opportunities due to climate change	Page 75, 4.5. Our business and sustainability	Principles 7,8, 9 of the Global Compact
		Page 151, 6. Committed to the environment	SDG 13
		8.2. Notes on additional information, page 198, Note 3. Sustainable products
		Consolidated Annual Report 2023. Document available on the corporate website www.mapfre.com
	201-3 Defined	Page 101, 5.1.3. Remuneration, benefits and recognition
	benefit plan obligations and other retirement plans	MAPFRE has a social welfare plan in place for employees that includes a pension plan, the assets of which in 2023 stood at 531 million euros. For more information, please see articles 30 and 40 of the MAPFRE Insurance Group Collective Agreement.	Principles 1,6,10 of the Global Compact
	201-4 Financial assistance received from government	The public subsidies received do not represent a significant proportion of the Group's total revenue
GRI 202: Market Presence (2016)	202-1 Ratios of standard entry level wage by gender compared to local minimum wage	8.2. Notes on additional information, page 214, Note 5. People and Organization indicators / page 220, Note 5.2. Information on remuneration	SDG 8
	202-2 Proportion of senior management hired from the local community	Page 38, 2.2. Diversity and experience	SDG 8
		Page 109, 5.1.5. Diversity, equality and inclusion
Economic Impacts (2016) GRI 203: Indirect	203-1 Infrastructure investments and services supported	Page 75, 4.5. Our business and sustainability
		Page 151, 6. Committed to the environment
	203-2 Significant indirect economic impacts	Page 18, 1.7.1.2. Economic and insurance environment
		Page 75, 4.5. Our business and sustainability	SDG 1, 8
		8.2. Notes on additional information, page 194, Note 2. Material topics
		8.2. Notes on additional information / page 198, Note 3. Sustainable products
GRI 204: Procurement Practices (2016)	204-1 Proportion of spending on Page 121, 5.2.3. Sustainable provider management local suppliers		Principle 10 of the Global Compact

	Thematic standard (Non-material topics)

GRI standard	Disclosure	Location	Other references
GRI 205: Anti-corruption (2016)	205-1 Operations assessed for risks related to corruption	Page 46, 3.1.2. Stakeholder participation in risk identification Page 75, 4.5. Our business and sustainability Page 121, 5.2.3.1. ESG approval process Page 124, 5.2.3.2. Other provider ESG supervision, audit and control processes Page 178, 7.2.3.1. Preventing all forms of corruption Corporate Governance Annual Reports (Section E3). Document available on the corporate website www.mapfre.com	Principle 10 of the Global Compact SDG 16
	205-2 Communication and training about anti corruption policies and procedures	Page 166, 7.1. Our principles: due diligence, control and compliance; Page 178, 7.2.3.1. Preventing all forms of corruption; 8.2. Notes on additional information / page 245, Note 9. Principles of the Global Compact and prevention and compliance measures in human rights MAPFRE makes the policies approved by the Board of Directors available to all stakeholders on its website. Documents available on the corporate website www.mapfre.com
	205-3 Confirmed incidents of corruption and actions taken	In 2023, there were no cases of money laundering. Regarding cases of corruption, there were no significant cases of corruption or conflict of interest in the Group and, in those cases detected, all of little relevance, the internal control mechanisms functioned correctly, facilitating their detection and the application of the corresponding measures.
GRI 206: Anti-competitive Behavior (2016)	206-1 Legal actions for anti competitive behavior, anti trust, and monopoly practices	In 2023, there were no lawsuits related to unfair competition, monopolistic practices or free competition.	Principle 10 of the Global Compact SDG 16

GRI standard	Disclosure	Location	Other references
	207-1 Approach to tax (Version 2019)	Page 186, 7.4.1. Fiscal approach	Principle 10 of the Global Compact
		Corporate Governance Annual Reports 2023, Section E Control systems and risk management. Document available on the corporate website www.mapfre.com	SDG 8 10 16
		Corporate Tax Policy. Document available on the corporate website www.mapfre.com
		The Audit and Compliance Committee is informed annually about tax policy and the minutes of the meetings of the delegate bodies are reported to the Board of Directors.
		For reasons of confidentiality, the company's strategy is not made public
		Page 186, 7.4.2. Fiscal control and risk management
		Page 44, 3.1.1. Risk Management System Governance
	207-2 Tax governance, control, and risk management (Version 2019)	The Annual Accounts 2023 include the provisions made for for taxes (Note 6.13) and the tax situation (Note 6.16). For more information, please see the audit report of the Consolidated Annual Accounts 2023, which is issued by an independent auditor. Documents available on the corporate website www.mapfre.com
		Annual Corporate Governance Report 2023 / Section E Control systems and risk management. Document available on the corporate website www.mapfre.com
GRI 207: Tax (2019)	207-3 Stakeholder engagement and management of concerns related to tax (Version 2019)	Page 186, 7.4.3. Stakeholder participation
		Corporate Tax Policy. Document available on the corporate website www.mapfre.com
	207-4- Presentation of country-by country reports (2019 version): except in relation to the following section: b.x,	Page 185, 7.4. Responsible and transparent with taxation Page 26, 1.7.2.2. Business Units information 8.2. Notes on additional information / page 252, Note 12. Main tax information by country
		Consolidated Annual Accounts and Management Report 2023 / Financial Statements / F) Supplementary Financial information by product and geographical area / 1. Consolidated ordinary revenues from external clients in financial years ending December 31, 2023 and 2022, Appendix 1 - Subsidiaries, associated undertakings and joint ventures, Appendix 2 - Subsidiaries, associated undertakings and joint ventures, Appendix 2 - Financial information table of the main companies as of December 31, 2023. Document available on the corporate website www.mapfre.com
		b.x) Information not available broken down by jurisdiction. MAPFRE is advancing in the preparation of a tax report under the Global Tax Contribution approach with which to report its performance in tax matters.
Materials (2016) GRI 301:	301-1 Materials used by weight or volume	8.2. Notes on additional information / page 240, Note 8. Environmental indicators / page 243, Table V. Resource consumption	Principles 7, 8, 9 of the Global Compact SDG 8 12

GRI standard	Disclosure	Location	Other references
GRI 302: Energy (2016)	302-1 Energy consumption within the organization	Page 155, 6.2.1. Energy efficiency; 8.2. Notes on additional information / page 240, Note 8. Environmental indicators	Principles 7, 8, 9 of the Global Compact SDG 7 8 12
			13
	302-2 Energy consumption outside of the	Page 155, 6.2.1. Energy efficiency; 8.2. Notes on additional information / page 240, Note 8. Environmental indicators	Principles 7, 8, 9 of the Global Compact
	organization	d) Does not apply - MAPFRE does not commercialize any energy products.	SDG 7 8 12 13
	302-3 Energy intensity	Page 155, 6.2.1. Energy efficiency; 8.2. Notes on additional information / page 240, Note 8. Environmental indicators	Principles 7, 8, 9 of the Global Compact
			SDG 7 8 12 13
	302-4 Reduction of energy consumption	Page 155, 6.2.1. Energy efficiency; 8.2. Notes on additional information / page 240, Note 8. Environmental indicators	Principles 7, 8, 9 of the Global Compact
			SDG 7 8 12 13
	302-5 Reductions in energy requirements of	Page 155, 6.2.1. Energy efficiency; 8.2. Notes on additional information / page 240, Note 8. Environmental	Principles 7, 8, 9 of the Global Compact
	products and services	indicators	SDG 7 8 12 13
GRI 303: Water and Effluents (2018)	303-1 Interactions with water as a shared resource	Due to the nature of the business activity of a finance company like MAPFRE, water consumption is not intensive, being only for employee use, and for vegetation and air conditioning in some buildings.
	303-2 Management of water discharge related impacts	Due to the fact that the business activity of a finance company like MAPFRE, whose effluents are those of the activity of its offices and the food preparation linked to them, this metric and its different breakdowns are considered immaterial due to their low impact, considering non-significant spills and compliance with the regulations of the areas in which they are carried out.
	303-3 Water withdrawal	Due to the nature of the business activity of a finance company like MAPFRE, no type of water extraction is carried out in any of its buildings.
	303-4 Water discharge	Due to the nature of the business activity of a finance company like MAPFRE, it is considered that the discharge of water is equal to the water consumed.
	303-5 Water consumption	Page 159, 6.2.5. Water management / 8.2. Notes on additional information / page 240, Note 8. Environmental indicators	Principles 7, 8, 9 of the Global Compact
			SDG 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	Page 162, 6.2.8. Natural Capital management and biodiversity preservation	Principles 7, 8, 9 of the Global Compact

GRI standard	Disclosure	Location	Other references
GRI 305. Emissions (2016)	305-1 Direct (Scope 1) GHG	8.2. Notes on additional information, page 240, Note 8. Environmental indicators / page 241, Table III. Carbon footprint broken down by scope
	emissions	(Biogenic emissions: not applicable)
	305-2 Energy indirect (Scope 2) GHG emissions	8.2. Notes on additional information, page 240, Note 8. Environmental indicators / page 241, Table III. Carbon footprint broken down by scope / page 242, Table IV. Carbon footprint breakdown and categories included in the different scopes	Principles 7, 8, 9 of the Global Compact
	305-3 Other indirect (Scope 3) GHG emissions	8.2. Notes on additional information, page 240, Note 8. Environmental indicators / page 241, Table III. Carbon footprint broken down by scope
	305-4 GHG emissions intensity	Page 154, 6.2. Our Environmental Footprint Plan 8.2. Notes on additional information, page 240, Note 8. Environmental indicators / page 241, Table III. Carbon footprint broken down by scope
	305-5 Reduction of GHG emissions	MAPFRE does not produce, import or export ozone-depleting substances (ODS) in its processes, products and services and which are subject to elimination commitments in markets affected by regulations on ODS.	SDG 2 3 12 13 14 15
	305-6 Emissions of ozone depleting substances (SDG)	MAPFRE, due to its activity, does not release emissions of nitrogen oxides (NOX), sulfur oxides (SOX) and other significant emissions into the air.
	305-7 Nitrogen oxides (NOX), sulfur oxides (SOX), and other significant air emissions	MAPFRE, due to its activity, does not release emissions of nitrogen oxides (NOX), sulfur oxides (SOX) and other significant emissions into the air.
GRI 306: Waste (2020)	306-1 Waste generation and significant waste related impacts	8.2. Notes on additional information, page 240, Note 8. Environmental indicators / page 243, Table V. Resource consumption	Principles 7, 8, 9 of the Global Compact
	306-2 Management of significant waste related impacts	Page 160, 6.2.6. Circular Economy 8.2. Notes on additional information, page 240, Note 8. Environmental indicators / page 243, Table V. Resource consumption	Principles 7, 8, 9 of the Global Compact
	306-3 Waste generated	8.2. Notes on additional information, page 240, Note 8. Environmental indicators / page 243, Table V. Resource consumption	Principles 7, 8, 9 of the Global Compact
	306-4 Waste diverted from disposal	8.2. Notes on additional information, page 240, Note 8. Environmental indicators / page 243, Table V. Resource consumption	Principles 7, 8, 9 of the Global Compact
	306-5 Waste directed to disposal	8.2. Notes on additional information, page 240, Note 8. Environmental indicators / page 243, Table V. Resource consumption	Principles 7, 8, 9 of the Global Compact
GRI 308: Supplier Assessment (2016) Environmental	308-1 New suppliers that were screened using environmental criteria	Page 121, 5.2.3. Sustainable provider management	Principles 7, 8, 9 of the Global Compact
	308-2 Negative environmental impacts in the supply chain and actions taken	Page 121, 5.2.3. Sustainable provider management	Principles 7, 8, 9 of the Global Compact

GRI standard	Disclosure	Location	Other references
GRI 401. Employment (2016)	401-1 New employee hires and employee turnover
	401-1 New employee hires and employee turnover	See material issue: Talent
	401-3 Parental leave
GRI 402: Labor/ Relations (2016) Management	402-1 Minimum notice periods regarding operational changes	In processes that involve operational changes related to the workforce, the average notice period that needs to be given to the Workers' Legal Representatives and the people involved is subject to the local legislation of each country. In the case of Spain, the general notice period is 15 days.	Principles 1, 2, 3, 6 of the Global Compact
GRI 403: Occupational Health and Safety (2018)	403-1 Occupational health and safety management system	Page 104, 5.1.4. Health and Well-being; People and Organization 2023 Report / 4. Employee experience / Safety, Health and well-being. Document available on the corporate website www.mapfre.com	Principles 1, 2, 3, 6 of the Global Compact
	403-2 Hazard identification, risk assessment, and incident investigation	Page 104, 5.1.4. Health and Well-being; People and Organization 2023 Report / 4. Employee experience / Safety, Health and well-being. Document available on the corporate website www.mapfre.com	SDG 3 8
	403-3 Occupational health services	Page 104, 5.1.4. Health and Well-being; People and Organization 2023 Report / 4. Employee experience / Safety, Health and well-being. Document available on the corporate website www.mapfre.com
	403-4 Worker participation, consultation, and communication on occupational health and safety	Page 104, 5.1.4. Health and Well-being; People and Organization 2023 Report / 4. Employee experience / Safety, Health and well-being. Document available on the corporate website www.mapfre.com
	403-5 Worker training on occupational health and safety	Page 94, 5.1.1.3. Training and knowledge management; Page 104, 5.1.4. Health and Well-being; People and Organization 2023 Report / 4. Employee experience / Safety, Health and well-being. Document available on the corporate website www.mapfre.com
	403-6 Promotion of worker health	Page 104, 5.1.4. Health and Well-being; People and Organization 2023 Report / 4. Employee experience / Safety, Health and well-being. Document available on the corporate website www.mapfre.com
	403-7 Prevention and mitigation of occupational health and safety impacts directly linked by business relationships	Page 104, 5.1.4. Health and Well-being; Page 121, 5.2.3. Sustainable provider management People and Organization 2023 Report / 4. Employee experience / Safety, Health and well-being. Document available on the corporate website www.mapfre.com
	403-8 Workers covered by an occupational health and safety management system	Page 104, 5.1.4. Health and Well-being; People and Organization 2023 Report / 4. Employee experience / Safety, Health and well-being. Document available on the corporate website www.mapfre.com
	403-9 Work related injuries	Page 106, 5.1.4.1. Workplace absenteeism 8.2. Notes on additional information / page 214, Note 5. People and Organization indicators / page 227, Note 5.3. Occupational accident data: calculation methods
	403-10 Work related ill health	Page 104, 5.1.4. Health and Well-being; 8.2. Notes on additional information / page 214, Note 5. People and Organization indicators / page 227, Note 5.3. Occupational accident data: calculation methods

GRI standard	Disclosure	Location	Other references
GRI 404: Training and Education (2016)	404-1 Average hours of training per year per	Page 92, 5.1.1. Talent	Principles 1, 2, 3, 4, 6, 8 of the Global Compact
	employee	People and Organization 2023 Report. Document available on the corporate website www.mapfre.com	SDG 4 5 8
	404-2 Programs for upgrading employee skills and transition assistance programs	Page 92, 5.1.1. Talent	Principles 1, 2, 3, 4, 6, 8 of the Global Compact
		People and Organization 2023 Report. Document available on the corporate website www.mapfre.com	SDG 8
	404-3 Percentage of employees receiving regular performance and career	Page 92, 5.1.1. Talent	Principles 1, 2, 3, 4, 6, 8 of the Global Compact
	development reviews	People and Organization 2023 Report. Document available on the corporate website www.mapfre.com	SDG 5 8 10
	405-1 Diversity of governance	Page 38, 2.2. Diversity and experience	Principles 1, 2, 3, 4, 6, of the Global Compact
	bodies and employees	Page 109, 5.1.5. Diversity, equality and inclusion	SDG 5 8
		People and Organization 2023 Report. Document available on the corporate website www.mapfre.com
GRI 405: Diversity and Equal Opportunity (2016)	405-2 Ratio of basic salary and remuneration of women to men	Page 101, 5.1.3. Remuneration, benefits and recognition	Principles 1, 2, 3, 4, 6, of the Global Compact
		8.2. Notes on additional information / page 214, Note 5. People and Organization indicators / page 220, Note 5.2. Information on remuneration	SDG 5 8 10
		People and Organization 2023 Report. Document available on the corporate website www.mapfre.com
discrimination (2016) GRI 406: Non	406-1 Incidents of discrimination and corrective actions taken	Page 174, 7.2. We safeguard ethical behavior	Principles 1, 2, 3, 4, 6,10 of the Global Compact
		8.2. Notes on additional information / page 245, Note 9. Principles of the Global Compact and prevention and compliance measures in human rights	SDG 5 8 16
Association and Collective GRI 407: Freedom of Bargaining (2016)	407-1 Operations and suppliers in which the right to freedom of	Page 117, 5.1.6.1. Legal representation of workers	Principles 1, 2, 3, 4, 6,10 of the Global Compact
	association and collective	Page 121, 5.2.3. Sustainable provider management	SDG 8 16
	bargaining may	Page 174, 7.2. We safeguard ethical behavior
	be at risk	8.2. Notes on additional information / page 245, Note 9. Principles of the Global Compact and prevention and compliance measures in human rights
GRI 408: Child Labor (2016)	408-1 Operations and suppliers at significant risk for	Page 92, 5.1.1. Talent	Principles 1, 2, 3, 4, 6,10 of the Global Compact
	incidents of child labor	Page 121, 5.2.3. Sustainable provider management	SDG 8 16
		Page 174, 7.2. We safeguard ethical behavior
		8.2. Notes on additional information / page 245, Note 9. Principles of the Global Compact and prevention and compliance measures in human rights

	Thematic standard (Non-material topics)
--	-----------------------------------------

GRI standard	Disclosure	Location	Other references
Compulsory Labor (2016) GRI 409: Forced or	409-1 Operations and suppliers at significant risk for incidents of forced or compulsory labor	Page 92, 5.1.1. Talent	Principles 1, 2, 3, 4, 6,10 of the Global Compact
		Page 121, 5.2.3. Sustainable provider management	SDG 8 16
		Page 174, 7.2. We safeguard ethical behavior
		8.2. Notes on additional information / page 245, Note 9. Principles of the Global Compact and prevention and compliance measures in human rights
GRI 410: Security Practices (2016)	410-1 Security personnel trained in human rights policies or procedures	Page 174, 7.2. We safeguard ethical behavior	Principles 1, 2, 3, 10 of the Global Compact
		8.2. Notes on additional information / page 245, Note 9. Principles of the Global Compact and prevention and compliance measures in human rights	SDG 16
GRI 411: Rights of Indigenous Peoples (2016)	411-1 Incidents of violations involving rights of indigenous peoples	Page 174, 7.2. We safeguard ethical behavior	Principles 1, 2, 3, 10 of the Global Compact
		8.2. Notes on additional information / page 245, Note 9. Principles of the Global Compact and prevention and compliance measures in human rights	SDG 2, 15, 16
		There is no record of having received any complaint for violation of the rights of indigenous peoples.

GRI standard	Disclosure	Location	Other references
	412-1 Operations that have been	Page 121, 5.2.3. Sustainable provider management	Principles 1-10 of the Global Compact
	subject to human	Page 176, 7.2.2.1. Human rights across the value chain
	rights reviews or impact assessments	8.2. Notes on additional information / page 245, Note 9. Principles of the Global Compact and prevention and compliance measures in human rights	SDG 16
		Corporate Policies and Regulations. Documents available on the corporate website www.mapfre.com
	412-2 Employee training on human rights policies or procedures	Page 176, 7.2.2. Respect for human rights	Principles 1-10 of the Global Compact
		8.2. Notes on additional information / page 245, Note 9. Principles of the Global Compact and prevention and compliance measures in human rights	SDG 16
		Corporate Policies and Regulations. Documents available on the corporate website www.mapfre.com
GRI 412: Human Rights Assessment (2016)		Page 174, 7.2. We safeguard ethical behavior	Principles 1, 2, 3, 4, 5, 6, 7 , 10 of the Global Compact
	412-3 Significant	Page 121, 5.2.3. Sustainable provider management	SDG 16
	investment	Page 61, 4.2. Materiality: Our priorities
	agreements and contracts that include human rights clauses or that underwent human rights screening	8.2. Notes on additional information / page 245, Note 9. Principles of the Global Compact and prevention and compliance measures in human rights
		During 2023, the only significant investment agreement that materialized in the year was evaluated. Among the dimensions analyzed were labor rights and practices, sexual harassment and discrimination, and the integration of people with disabilities. MAPFRE defines significant investment agreements as those acquisitions whose investment exceeds 50 million euros and which must be approved by the Board of Directors. See page #, 1.7.2.3. Relevant facts
		Corporate Policies and Regulations. Document available on the corporate website www.mapfre.com
	413-1 Operations with local community engagement, impact	Page 92, 5.1.1. Talent	Principles 1, 2, 3, 4, 5, 6, 7 , 10 of the Global Compact
		Page 143, 5.6. Our footprint, shared value	SDG 1, 10
	assessments, and	Page 145, 5.6.2. Contribution to Agenda 2030
	development programs	People and Organization 2023 Report. Document available on the corporate website www.mapfre.com
		www.fundacionmapfre.org
Communities (2016) GRI 413: Local	413-2 Operations with significant actual and potential negative impacts on local communities	Page 92, 5.1.1. Talent	Principles 1, 2, 3, 4, 5, 6, 7 , 10 of the Global Compact
		Page 143, 5.6. Our footprint, shared value	SDG 1, 10
		8.2. Notes on additional information / page 245, Note 9. Principles of the Global Compact and prevention and compliance measures in human rights
		Page 145, 5.6.2. Contribution to Agenda 2030
		www.fundacionmapfre.org

GRI standard	Disclosure	Location
	414-1 New suppliers that were screened using social	Page 121, 5.2.3. Sustainable provider management	Principles 1- 10 of the Global Compact
	criteria		SDG 5 8 16
Social Assessment (2016) GRI 414: Supplier	414-2 Negative social impacts in the supply chain and actions taken	8.2. Notes on additional information, page 194, Note 2. Material topics	Principles 1- 10 of the Global Compact
		Page 121, 5.2.3. Sustainable provider management	SDG 5 8 16
GRI 415: Public Policy (2016)	415-1 Political contributions	Page 178, 7.2.3.1. Preventing all forms of corruption	Principle 10 of the Global Compact
		Cote of Ethic and Conduct. Document available on the corporate website www.mapfre.com	SDG 16
		Institutional, Business and Organizational Principles of the MAPFRE GROUP. Document available on the corporate website www.mapfre.com
GRI 417: Marketing and Labeling (2016)	417-1 Requirements for product and service information and labeling	Page 126, 5.3. Protecting our clients	SDG 12
		The product description document is itself the policy contract and complies with current local regulations.
	417-2 Incidents of non-compliance concerning product and service information and labeling	Page 137, 5.3.5.2. Grievances and complaints; Page 166, 7.1. Our principles: due diligence, control and compliance	Principle 10 of the Global Compact
		The product description document is itself the policy contract and complies with current local regulations.	SDG 16
	417-3 Incidents of non-compliance concerning marketing communications	During the 2023 fiscal year, there were no significant cases of noncompliance with the regulations or the voluntary codes assumed by the company.	Principle 10 of the Global Compact
			SDG 16
GRI 418: Customer Privacy (2016)	418-1 Substantiated complaints concerning breaches of customer privacy and losses of customer data	See Material Topics: Cybersecurity and Privacy	Principles 1, 2, 3, 10 of the Global Compact SDG 16

Thematic standard (Non-material topics)

8.4. Correspondence of GRI content and non-financial information status (Law 11/2018 of December 28)

Correspondence of GRI content and non-financial information status (Law 11/2018 of December 28)

Information requested by the Law 11/2018	Page or section of the report where the Reporting criterion requirement of Law 11/2018 is met
GENERAL DISCLOSURES
A brief description of the business model that includes its operating environment, organization, and structure	GRI 2-6 Activities, value chain and other business relationships	Page 7, 1. We are MAPFRE Page 34, 2. Corporate governance
Markets in which the organization operates	GRI 2-1 Organizational details GRI 2-6 Activities, value chain and other business relationships	Page 11, 1.3. Business model and geographic footprint (deployment) Page 26, 1.7.2.2. Business Units information
Organizational objectives and strategies	GRI 2-22 Statement on sustainable development strategy GRI 3-3 Management of material topics	Page 16, 1.6. Strategy Page 61, 4.2. Materiality: Our priorities
Major factors and trends that may affect future evolution	GRI 2-22 Statement on sustainable development strategy	Page 18, 1.7.1. Regulatory framework and global context Page 20, 1.7.2. Key MAPFRE financial information Page 75, 4.5. Our business and sustainability
Reporting framework used	GRI 1-3 Reporting in accordance with the GRI Standards	Page 189, 8.1. Basis of preparation and presentation of the report
Materiality principle	GRI 3-1 Process to determine material topics GRI 3-2 List of material issues	Page 189, 8.1. Basis of preparation and presentation of the report Page 61, 4.2. Materiality: Our priorities
ISSUES RELATING TO THE ENVIRONMENT
Management focus: Description and results of policies relating to these topics as well as the main risks related to these topics associated with the activities of the group	GRI 2-12 Role of the highest governance body in overseeing the management of impacts GRI 3-3 Management of material topics	Page 73, 4.4. Sustainability governance Page 75, 4.5. Our business and sustainability Page 151, 6. Committed to the environment
DETAILED GENERAL INFORMATION
Detailed information on the current and foreseeable effects of the company's activities on the environment and, where appropriate, health and safety	GRI 301 GRI 302 GRI 303 GRI 304 GRI 305 GRI 306	Page 43, 3. Risk management Page 75, 4.5. Our business and sustainability Page 151, 6. Committed to the environment 8.2. Notes on additional information, page 240, Note 8. Environmental indicators MAPFRE Group TCFD Report at www.mapfre.com/en/
Environmental assessment or certification procedures	GRI 2-12 Role of the highest governance body in overseeing the management of impacts GRI 2-23 Policy commitments GRI 3-3 Management of material topics	Page 152, 6.1. Action strategy against climate change 8.2. Notes on additional information / page 240, Note 8. Environmental indicators / page 241, Table II. SIGMAYEc3 control

INTEGRATED REPORT 2023 278

Correspondence of GRI content and non-financial information status (Law 11/2018 of December 28)
Information requested by the Law 11/2018	Reporting criterion	Page or section of the report where the requirement of Law 11/2018 is met
Resources dedicated to the prevention of environmental risks	GRI 2-12 Role of the highest governance body in overseeing the management of impacts GRI 3-3 Management of material topics	Page 43, 3. Risk management Page 75, 4.5. Our business and sustainability Page 151, 6. Committed to the environment 8.2. Notes on additional information / page 240, Note 8. Environmental indicators / page 241, Table II. SIGMAYEc3 control
Application of the precautionary principle	GRI 2-23 Policy commitments GRI 3-3 Management of material topics	Page 152, 6.1. Action strategy against climate change
Quantity of provisions and guarantees against environmental risks	GRI 3-3 Management of material topics GRI 307-1	Page 43, 3. Risk management Page 152, 6.1. Action strategy against climate change 8.2. Notes on additional information / page 240, Note 8. Environmental indicators / page 241, Table II. SIGMAYEc3 control
POLLUTION
Measures to prevent, reduce or repair emissions that seriously affect the environment; taking into account any form of activity-specific air pollution, including noise and light pollution	GRI 3-3 Management of material topics GRI 302-4 GRI 305-1, 305-2, 305-3, 305-5	Page 152, 6.1. Action strategy against climate change Page 154, 6.2. Our Environmental Footprint Plan
CIRCULAR ECONOMY AND WASTE PREVENTION AND MANAGEMENT
Measures for prevention, recycling, reuse, other forms of recovery and disposal of waste. Action taken to prevent food waste	GRI 301-1 GRI 306-2 (2020), 306-3 (2020)	Page 154, 6.2. Our Environmental Footprint Plan 8.2. Notes on additional information / page 240, Note 8. Environmental indicators / page 244, Table VI. Waste
SUSTAINABLE USE OF RESOURCES
Water consumption and water supply in accordance with local limitations	GRI 303-3, 303-5	Page 154, 6.2. Our Environmental Footprint Plan 8.2. Notes on additional information / page 240, Note 8. Environmental indicators / page 243, Table V. Resource consumption
Consumption of raw materials and measures taken to improve the efficiency of use	GRI 301-1, 301-2	Page 154, 6.2. Our Environmental Footprint Plan 8.2. Notes on additional information / page 240, Note 8. Environmental indicators / page 243, Table V. Resource consumption
Energy: direct and indirect energy consumption. Consumption of raw materials and measures taken to improve the efficiency of use. Use of renewable energy	GRI 3-3 Management of material topics GRI 302-1, 302-2, 302-3, 302-4, 302-5	Page 154, 6.2. Our Environmental Footprint Plan 8.2. Notes on additional information / page 240, Note 8. Environmental indicators / page 243, Table V. Resource consumption
CLIMATE CHANGE
Greenhouse gas emissions generated as a result of the company's activities, including the use of the goods and services it produces	GRI 301-1 GRI 305-1 305-2 305-3 305-4	Page 154, 6.2. Our Environmental Footprint Plan 8.2. Notes on additional information / page 240, Note 8. Environmental indicators / page 242, Table IV. Carbon footprint breakdown and categories included in the different scopes
Measures taken to adapt to the consequences of climate change	GRI 3-3 Management of material topics GRI 201-2 GRI 305-5	Page 154, 6.2. Our Environmental Footprint Plan 8.2. Notes on additional information / page 240, Note 8. Environmental indicators / page 242, Table IV. Carbon footprint breakdown and categories included in the different scopes

Correspondence of GRI content and non-financial information status (Law 11/2018 of December 28)
Information requested by the Law 11/2018	Reporting criterion	Page or section of the report where the requirement of Law 11/2018 is met
Voluntarily established reduction targets in the medium and long term to reduce greenhouse gas emissions and the means implemented for this purpose	GRI 3-3 Management of material topics GRI 302-4 GRI 305-5	Page 154, 6.2. Our Environmental Footprint Plan 8.2. Notes on additional information / page 240, Note 8. Environmental indicators / page 242, Table IV. Carbon footprint breakdown and categories included in the different scopes
BIODIVERSITY PROTECTION
Measures taken to preserve or restore biodiversity	GRI 3-3 Management of material topics	Page 154, 6.2. Our Environmental Footprint Plan
Impacts caused by activities or operations in protected areas	GRI 304-1	Page 162, 6.2.8. Natural Capital management and biodiversity preservation 8.2. Notes on additional information / page 240, Note 8. Environmental indicators
ISSUES RELATING TO SOCIETY AND EMPLOYEES
Management focus: Description and results of policies relating to these issues as well as the main risks related to these topics associated with the activities of the group	GRI 2-12 Role of the highest governance body in overseeing the management of impacts GRI 2-19 Remuneration policies GRI 3-3 Management of material topics	Page 90, 5.1. Developing our people
EMPLOYMENT
Total number and distribution of employees by country, sex, age and professional classification	GRI 2-6 Activities, value chain and other business relationships GRI 2-7 Employees GRI 3-3 Management of material topics GRI 405-1	Page 90, 5.1. Developing our people
Total number and distribution of labor contract modalities and annual average of indefinite contracts, temporary contracts and part-time contracts by sex, age and professional classification	GRI 2-7 Employees GRI 2-8 Workers who are not employees	Page 90, 5.1. Developing our people 8.2. Notes on additional information / page 214, Note 5. People and Organization indicators / page 214, Note 5.1. New hires and employee departures by job position level
Number of layoffs by sex, age and professional classification	GRI 401-1	Page 90, 5.1. Developing our people 8.2. Notes on additional information / page 214, Note 5. People and Organization indicators / page 214, Note 5.1. New hires and employee departures by job position level
Average remuneration and trends by sex, age and professional classification or similar value	GRI 405-2	Page 101, 5.1.3. Remuneration, benefits and recognition 8.2. Notes on additional information / page 214, Note 5. People and Organization indicators / page 220, Note 5.2. Information on remuneration
Pay gap, remuneration paid for job positions performing equal work or average of the company	GRI 405-2	Page 101, 5.1.3. Remuneration, benefits and recognition 8.2. Notes on additional information / page 214, Note 5. People and Organization indicators / page 220, Note 5.2. Information on remuneration
Average remuneration of board directors and managers, including variable remuneration, allowances, compensation, payments made into long-term savings systems and any other earnings, by sex	GRI 2-19 Remuneration policies GRI 2-20 Process to determine remuneration	Page 101, 5.1.3. Remuneration, benefits and recognition 8.2. Notes on additional information / page 214, Note 5. People and Organization indicators / page 220, Note 5.2. Information on remuneration
Implementation of disconnection from work policies	GRI 3-3 Management of material topics	Page 99, 5.1.2. Flexibility and agility
Number of employees with disabilities	GRI 405-1	Page 109, 5.1.5. Diversity, equality and inclusion
WORK ORGANIZATION
Organization of working time	2-7 Employees	Page 90, 5.1. Developing our people

Correspondence of GRI content and non-financial information status (Law 11/2018 of December 28)
Information requested by the Law 11/2018	Reporting criterion	Page or section of the report where the requirement of Law 11/2018 is met
Number of absentee hours	GRI 3-3 Management of material topics GRI 403-2, 403-9	Page 104, 5.1.4. Health and Well-being 8.2. Notes on additional information / page 214, Note 5. People and Organization indicators /page 227, Note 5.3. Occupational accident data: calculation methods
Measures to facilitate the enjoyment of a work-life balance and encourage the corresponding exercise of these by both	GRI 3-3 Management of material topics GRI 401-2, 401-3	Page 104, 5.1.4. Health and Well-being
HEALTH AND SAFETY
Occupational health and safety conditions	GRI 3-3 Management of material topics GRI 403-1, 403-2, 403-3, 403-4, 403-5, 403-6, 403-7, 403-8	Page 104, 5.1.4. Health and Well-being 8.2. Notes on additional information / page 214, Note 5. People and Organization indicators /page 227, Note 5.3. Occupational accident data: calculation methods
Accidents at work, in particular the frequency and severity of same, as well as occupational illnesses, by sex	GRI 403-2, 403-9, 403-10	Page 104, 5.1.4. Health and Well-being
SOCIAL RELATIONS
Organization of social dialog including procedures for informing, consulting and negotiating with employees	GRI 2-28 Membership associations GRI 2-29 Approach to stakeholder engagement GRI 402-1 GRI 407-1	Page 114, 5.1.6. The voice of MAPFRE people
Percentage of employees covered by collective agreement by country	GRI 2-30 Collective bargaining agreements	Page 114, 5.1.6. The voice of MAPFRE people
Balance of collective agreements, particularly in the field of health and safety at work	GRI 403-1, 403-4 GRI 407-1	Page 114, 5.1.6. The voice of MAPFRE people
TRAINING
Policies implemented in the field of training	GRI 404-2, 404-3	Page 92, 5.1.1. Talent
Total number of training hours broken down by professional classification	GRI 404-1, 404-2, 404-4	Page 92, 5.1.1. Talent
UNIVERSAL ACCESSIBILITY
Universal accessibility for people with disabilities	GRI 405-1	Page 109, 5.1.5. Diversity, equality and inclusion
EQUALITY
Measures taken to promote equal treatment and opportunities between women and men	GRI 401-3 GRI 404-2	Page 109, 5.1.5. Diversity, equality and inclusion; Page 174, 7.2. We safeguard ethical behavior
Equality plans, measures taken to promote employment, protocols against sexual and gender-based harassment	GRI 405-1, 405-2 GRI 406-1	Page 109, 5.1.5. Diversity, equality and inclusion; Page 174, 7.2. We safeguard ethical behavior
Policy against all forms of discrimination and, where appropriate, diversity management	GRI 405-1, 405-2 GRI 406-2	Page 109, 5.1.5. Diversity, equality and inclusion
RESPECT FOR HUMAN RIGHTS
Management approach: Description and results of policies relating to these issues as well as the main risks related to these issues associated with the activities of the group	GRI 2-12 Role of the highest governance body in overseeing the management of impacts GRI 3-3 Management of material topics	Page 166, 7.1. Our principles: due diligence, control and compliance; Page 167, 7.1.1.1. Due diligence in human rights and the environment; Page 170, 7.1.1.3. Consultation and whistleblower channels; Page 171, 7.1.2. Internal control system Page 176, 7.2.2. Respect for human rights
APPLICATION OF DUE DILIGENCE PROCEDURES

Correspondence of GRI content and non-financial information status (Law 11/2018 of December 28)
Information requested by the Law 11/2018	Reporting criterion	Page or section of the report where the requirement of Law 11/2018 is met
Implementation of due diligence procedures in the field of Human Rights	GRI 2-23 Policy commitments GRI 2-26 Mechanisms for seeking advice and raising concerns GRI 407-1 GRI 408-1 GRI 409-1 GRI 410-1 GRI 411-1 GRI 412-2, 412-3, 414-2	Page 166, 7.1. Our principles: due diligence, control and compliance; 8.2. Notes on additional information / page 245, Note 9. Principles of the Global Compact and prevention and compliance measures in human rights
Prevention of the risk of Human Rights violations and, where appropriate, measures to mitigate, manage and redress possible abuses	GRI 3-3 Management of material topics GRI 412- 1	Page 174, 7.2. We safeguard ethical behavior
Complaints of instances of Human Rights violations	GRI 2-26 Mechanisms for seeking advice and raising concerns GRI 3-3 Management of material topics GRI 406-1 GRI 419-1	Page 174, 7.2. We safeguard ethical behavior
Measures taken to promote and comply with the provisions of the ILO's fundamental conventions relating to respect for freedom of association and the right to collective bargaining; the elimination of employment and occupational discrimination; the elimination of forced or compulsory labor; the effective abolition of child labor	GRI 3-3 Management of material topics	Page 174, 7.2. We safeguard ethical behavior 8.2. Notes on additional information / page 245, Note 9. Principles of the Global Compact and prevention and compliance measures in human rights
INFORMATION ON FIGHTING CORRUPTION AND BRIBERY
Management approach: Description and results of policies relating to these issues as well as the main risks related to these issues associated with the activities of the group	GRI 2-12 Role of the highest governance body in overseeing the management of impacts GRI 3-3 Management of material topics	Page 174, 7.2. We safeguard ethical behavior
CORRUPTION AND BRIBERY
Measures taken to prevent corruption and bribery	GRI 2-23 Policy commitments GRI 2-26 Mechanisms for seeking advice and raising concerns GRI 3-3 Management of material topics GRI 205-1, 205-2, 205-3 GRI 415-1	Page 166, 7.1. Our principles: due diligence, control and compliance; Page 170, 7.1.1.3. Consultation and whistleblower channels; Page 178, 7.2.3.1. Preventing all forms of corruption Page 179, 7.2.3.3. Fraud prevention Page 180, 7.2.3.4. Financial and Accounting Whistleblower channel
Measures to combat money laundering	GRI 2-23 Policy commitments GRI 2-26 Mechanisms for seeking advice and raising concerns GRI 3-3 Management of material topics GRI 205-1,205-2, 205-3	Page 166, 7.1. Our principles: due diligence, control and compliance; Page 170, 7.1.1.3. Consultation and whistleblower channels; Page 179, 7.2.3.2. Prevention of money laundering and financing terrorism Page 180, 7.2.3.4. Financial and Accounting Whistleblower channel
Partnership or sponsorship actions	GRI 2-28 Membership associations GRI 201	Page 148, 5.6.2.3. Corporate citizenship Page 174, 7.2. We safeguard ethical behavior
INFORMATION ABOUT THE COMPANY
Management approach: Description and results of policies relating to these issues as well as the main risks related to these issues associated with the activities of the group	GRI 2-12 Role of the highest governance body in overseeing the management of impacts GRI 3-3 Management of material topics	Page 68, 4.3. Sustainability strategy Page 174, 7.2. We safeguard ethical behavior
THE COMPANY'S COMMITMENT TO SUSTAINABLE DEVELOPMENT
The impact of the company's activities on local employment and development	GRI 3-3 Management of material topics GRI 201-1 GRI 203-2 GRI 411-1 GRI 413-1, 413-2	Page 68, 4.3. Sustainability strategy Page 143, 5.6. Our footprint, shared value

Correspondence of GRI content and non-financial information status (Law 11/2018 of December 28)
Information requested by the Law 11/2018	Reporting criterion	Page or section of the report where the requirement of Law 11/2018 is met
The impact of the company's activities on local and national populations	GRI 3-3 Management of material topics GRI 201-1 GRI 203-2 GRI 411-1 GRI 413-1, 413-2	Page 68, 4.3. Sustainability strategy Page 143, 5.6. Our footprint, shared value
Relationships maintained with local community actors and the modalities of dialog with these	GRI 2-29 Approach to stakeholder engagement GRI 204-1 GRI 413-1, 413-2	Page 62, 4.2.2. Phases and result: double materiality matrix; Page 88, 5. Committed to stakeholders Page 143, 5.6. Our footprint, shared value
Contributions to foundations and non profit organizations	GRI 2-28 Membership associations GRI 3-3 Management of material topics GRI 201-1	8.2. Notes on additional information / page 235, Note 7. Collaboration and participation in industry and trade organizations
SUBCONTRACTING AND PROVIDERS
Inclusion of social, gender equality and environmental issues in the procurement policy	GRI 3-3 Management of material topics GRI 204-1 GRI 414-1, 414-2	Page 121, 5.2.3. Sustainable provider management
Consideration of social and environmental responsibility in our relationships with suppliers and subcontractors	GRI 2-6 Activities, value chain and other business relationships GRI 308-1 GRI 407-1 GRI 409-1 GRI 414-1, 414-2	Page 121, 5.2.3. Sustainable provider management
Supervision and audit systems and results thereof	GRI 2-6 Activities, value chain and other business relationships	Page 121, 5.2.3. Sustainable provider management
CONSUMERS
Consumer health and safety measures	GRI 3-3 Management of material topics GRI 416 -1 GRI 417-1, 417-2	Page 61, 4.2. Materiality: Our priorities Page 126, 5.3.2. Foundations of the Customer Experience
Complaint systems, complaints received and resolution of complaints	GRI 2-26 Mechanisms for seeking advice and raising concerns GRI 3-3 Management of material topics GRI 417-3 GRI 418-1	Page 137, 5.3.5.2. Grievances and complaints Page 174, 7.2. We safeguard ethical behavior
TAX INFORMATION
Profits generated by country	GRI 3-3 Management of material topics GRI 201-1 GRI 207-4	8.2. Notes on additional information / page 252, Note 12. Main tax information by country Page 185, 7.4. Responsible and transparent with taxation 8.2. Notes on additional information / page 252, Note 12. Main tax information by country
Taxes on profits paid	GRI 3-3 Management of material topics GRI 201-1 GRI 207-4	Page 185, 7.4. Responsible and transparent with taxation 8.2. Notes on additional information / page 252, Note 12. Main tax information by country
Public subsidies received	GRI 201-4	Page 185, 7.4. Responsible and transparent with taxation 8.2. Notes on additional information / page 252, Note 12. Main tax information by country
REGULATION (EU) 2020/852 - TAXONOMY
Requirements of the Regulation	Proprietary MAPFRE methodology, prepared based on article 8 of the European Taxonomy	Page 75, 4.5. Our business and sustainability

MAPFRE, S.A. and subsidiaries

Independent Assurance Report on the 2023 Integrated Report

13 February 2024

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

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

Independent Assurance Report on the 2023 Integrated Report of MAPFRE, S.A. and subsidiaries for 2023

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

To the Shareholders of MAPFRE, S.A.:

We have been engaged by MAPFRE, S.A. management to perform a limited assurance review of the accompanying Integrated Report (hereinafter, the Report) of Company, S.A. (hereinafter, the Parent) and subsidiaries (hereinafter, the Group) for the year ended 31 December 2023, prepared in accordance with the Sustainability Reporting Standards of the Global Reporting Initiative (hereinafter, GRI Standards).

In addition, pursuant to article 49 of the Spanish Code of Commerce, we have performed a limited assurance review to evaluate whether the Consolidated Non-Financial Information Statement (hereinafter NFIS) of the Group at 31 December 2023, included in the Report and which also forms part of the Group's consolidated Directors' Report for 2023, has been prepared in accordance with prevailing legislation and GRI Standards, based on each subject area in table "8.4. Correspondence of GRI content and non-financial information statement (Law 11/2018 of 28 December 2018)" of the aforementioned Report.

The Report includes additional information to that required by GRI Standards and prevailing mercantile legislation concerning non-financial information, which has not been the subject of our assurance work. In this respect, our work was limited exclusively to providing assurance on the information contained in table "8.3. GRI Content Index" and in table "8.4. Correspondence of GRI content and non-financial information statement (Law 11/2018 of 28 December 2018)" included in the accompanying Report.

Responsibility of the Parent's Directors and Management ___________________

Management of the Parent is responsible for the preparation and presentation of the Report in accordance with the GRI Standards for each subject area in table "8.3. GRI Content Index" of the Report.

In addition, the Directors of the Parent are responsible for the content and authorisation for issue of the NFIS included in the Group's consolidated Directors' Report. The NFIS has been prepared in accordance with prevailing mercantile legislation and selected Sustainability Reporting Standards of the Global Reporting Initiative (GRI Standards) based on each subject area in table "8.4. Correspondence of GRI content and non-financial information statement (Law 11/2018 of 28 December 2018)" of the aforementioned Report.

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

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 Directors of the Parent are also responsible for defining, implementing, adapting and maintaining the management systems from which the information required to prepare the Report was obtained.

Our Independence and Quality Management _______________________________

We have complied with the independence and other ethical requirements of the International Code of Ethics for Professional Accountants (including international independence standards) of the International Ethics Standards Board for Accountants (IESBA Code of Ethics), which is founded on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional behaviour.

Our firm applies the International Standard on Quality Management (ISQC) 1, which requires us to design, implement and operate a system of quality management including documented policies and procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.

The engagement team was comprised of professionals specialised in reviews of non-financial information and, specifically, in information on economic, social and environmental performance.

Our Responsibility ________________________________________________________

Our responsibility is to express our conclusions in an independent limited assurance report based on the work performed. We conducted our engagement in accordance with the requirements of the Revised International Standard on Assurance Engagements 3000, "Assurance Engagements other than Audits or Reviews of Historical Financial Information" (ISAE 3000 (Revised)), issued by the International Auditing and Assurance Standards Board (IAASB) of the International Federation of Accountants (IFAC), and with the guidelines for assurance engagements on the Non-Financial Information Statement issued by the Spanish Institute of Registered Auditors (ICJCE).

The procedures performed in a limited assurance engagement vary in nature and timing from, and are less in extent than for, a reasonable 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 and areas of the Group that participated in the preparation of the Report, reviewing the processes for compiling and validating the information presented in the Report and applying certain analytical procedures and sample review tests, which are described below:

• Meetings with the Group's personnel to gain an understanding of the business model, policies and management approaches applied, the principal risks related to these matters and to obtain the information necessary for the external review.
• Analysis of the scope, relevance and completeness of the content of the Report for 2023 based on the materiality analysis performed by the Group and described in section "4.2 Materiality: our priorities", considering the content required by prevailing mercantile legislation.

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

• Analysis of the processes for compiling and validating the data presented in the Report for 2023.
• Review of the information relative to the risks, policies and management approaches applied in relation to the material aspects presented in the Report for 2023.
• Corroboration, through sample testing, of the information relative to the content of the Report for 2023 and whether it has been adequately compiled based on data provided by the information sources.
• 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:

• The 2023 Integrated Report of MAPFRE, S.A. and subsidiaries for the year ended 31 December 2023 has not been prepared, in all material respects, in accordance with the Sustainability Reporting Standards of the Global Reporting Initiative, as detailed in table "8.3. GRI content index" of the Report.
• The NFIS of MAPFRE, S.A. and subsidiaries for the year ended 31 December 2023, included in the Report, has not been prepared, in all material respects, in accordance with prevailing mercantile legislation and selected GRI Standards based on each subject area in table "8.4. Correspondence of GRI content and non-financial information statement (Law 11/2018 of 28 December 2018)" of the Report.

Emphasis of Matter_______________________________________________________

Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on the establishment of a framework to facilitate sustainable investment, and the delegated acts promulgated in accordance with this Regulation, stipulate the obligation to disclose information on how and to what extent the undertaking's investments are associated with eligible economic activities relating to the environmental objectives of sustainable use and protection of water and marine resources, transition to a circular economy, pollution prevention and control and protection and restoration of biodiversity and ecosystems (the other environmental objectives), and relating to certain new activities included in the objectives of climate change mitigation and climate change adaptation. This obligation applies for the first time for the 2023 fiscal year. This regulation also stipulates for the first time for the 2023 fiscal year the obligation to disclose information on how and to what extent the undertaking's activities are associated with economic activities aligned to the activities included in the objectives of climate change mitigation and climate change adaptation, excluding the aforementioned new activities. Therefore, no comparative information on alignment with the objectives of climate change mitigation and climate change adaptation has been included in the NFIS, nor has comparative information on eligibility been included for the other environmental objectives or for the new activities included in the climate change mitigation and climate change adaptation objectives. Furthermore, inasmuch as the information on eligible activities in 2022 was not required to be as detailed as in 2023, the disclosures on eligibility included in the NFIS are not strictly comparable. In addition, the directors of MAPFRE have included information on the criteria

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

which, in their opinion, enables them to meet such obligation and which are defined in "Note 4. EU Taxonomy Alignment" of section 8.2 of the accompanying Report. Our conclusion is not modified in respect of this matter.

Use and Distribution______________________________________________________

In accordance with the terms of our engagement letter, this Report has been prepared for MAPFRE, S.A. in relation to its 2023 Integrated Report and for no other purpose or in any other context.

In relation to the Consolidated 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 Auditores, S.L.

(Signed on original in Spanish)

Patricia Reverter Guillot 13 February 2024