Mapfre S A : (03.2024) AGM – Chairman and CEO’s report

Madrid, March 15, 2024

SPANISH SECURITIES AND EXCHANGE COMMISSION (CNMV)

In accordance with article 227 of Law 6/2023, of March 17, on the Securities Market and Investment Services, MAPFRE, S.A. (MAPFRE) hereby gives notice to the Spanish Securities and Exchange Commission of the following

OTHER RELEVANT INFORMATION

Please find attached the report presented by the Chairman of the Board of Directors, Mr. Antonio Huertas Mejías, to the Annual General Meeting held today, so that it is made available to shareholders and the public in general.

Ángel L. Dávila Bermejo General Counsel

ANTONIO HUERTAS

CHAIRMAN AND CEO

Ladies and gentlemen, thank you for the trust you have placed in us for yet another year as our shareholders.

To bring this Annual General Meeting to a close, I'm going to give you a brief overview of how 2023 went for MAPFRE; then I'll briefly review our achievements

and main lines of action in the different regions and business units in the world.

I'll also go over the main challenges we are facing, with a revision of our strategic

plan and an update on our aspirational objectives for the next three years.

Once again, we had to deal with a considerable environment in Non-Life insurance. Two key factors were a drag on income statements of insurance companies:

• First, persistently high inflation in many markets around the world significantly affected our costs, especially those linked to the Non-Life businesses, which are highly demanding in terms of human and logistical resources. Auto insurance is the most impacted in general and saw significant losses in the main global markets. The changes in social behavior affecting driving led to an increase in claims frequency. And inflation affecting the automotive world, which is even higher than core inflation, is causing cost increases that were not included in rates, which had gone down significantly during the pandemic.
• The second factor is related to the impact of the climate, which is increasingly changing and causing damage to property and people. In recent years, the overall damage caused by weather events worldwide has continued to increase with each passing year. Along with large catastrophic claims, which respond to unpredictable cycles, medium- and high-intensity events are now happening far more frequently, and they are even affecting more developed areas like Europe.

The insurer's task is not easy when faced with these changes, which do not match known historical series and require reasonable rate increases if they are to be properly managed, in addition to improvements in efficiency and productivity. It takes time and much analysis to adapt prices to new circumstances, and in the meantime, they significantly affect the profitability of the insurance business.

Insurance companies specialize in risk management, which involves both the most and least predictable risks. And the essence of our activity is based on a proper diversification of these risks, to compensate for the imbalances between them. For this reason, MAPFRE, despite these circumstances, and precisely thanks to the diversification we have achieved, once again managed to report strong numbers, as 2023 was a good year for our group.

To summarize 2023, I would like to highlight that:

Premium growth was excellent, and together with the strong performance of our investments, we set a historic record for revenue, which far exceeded 32 billion for the first time.

Earnings were also very good, because, excluding the goodwill writedown in our U.S. operation, we beat our targets. However, these results do show certain imbalances if we analyze them by product and region. Auto continues to be the most challenging business in the main countries where we operate in this line. However, our diversification has helped us once again, thanks to the significant contribution to profits made by the Life and Property & Casualty businesses, in addition to the Reinsurance activity and commercial lines. It's important to note that nine countries improved their total combined ratio in the year, and we have 14 countries with total combined ratios below 100%. The significant recovery in ordinary financial income, thanks to higher interest rates, is significantly helping to achieve our financial objectives.

Brazil, Reinsurance, Spain, and the rest of Latin America reported very positive results, so our territorial diversification also helps us not to depend exclusively on one or two large operations. This has strengthened our commitment to a global, multi-line,multi-channel, and geographically diversified business model.

Now I'd like to give you a more specific view of the company's performance across the different regions and business units, as well as an assessment of the outlook on the immediate horizon.

In Iberia, we closed the year with exceptional growth, and we outperformed the market in both Life and Non-Life. We can highlight the positive performance of the Life business, where our provisions grew, almost doubling that of the sector. In Non-Life, we maintain strong leadership in the Auto, Homeowners, Commercial and Condominium lines, and in Health we continue to be the largest multi-line insurance company in the Spanish market. We still have room for improvement in profitability, due to the effects of inflation, the frequency of climate events, and the rise in the compensation scale for personal injury in Auto. But we're confident that the improvement measures adopted, both in terms of adapting rates and boosting efficiency and productivity, will continue to bear fruit.

We remain committed to driving a multichannel approach with the implementation of a new commercial model that gives us a uniform view of the entire territory while raising the quality of service provided by all channels. Our own network is still our greatest strength, and we have continued to reinforce it, with 60 net new office openings, bringing the national total to an impressive 3,061 own offices, and making it one of the largest insurance and financial networks in Spain. We've also intensified the development of new agents, who will continue to join our exclusive network of franchised delegate offices, and we're providing them with technology and operational tools that will enable them to improve their sales activity and enhance customer experience. We've also continued to strengthen our relationship with brokers, with positive growth data, and we have further strengthened our partnerships with our main banking partners in Spain and

Portugal, Bankinter and Banco Santander, with extremely satisfactory progress being made for both parties.

To boost our commercial positioning, we are taking new consumer habits into account, and we continue to develop online self-service features, which have enabled us to increase the number of customers who use our digital assets. Just to highlight some data, in Spain, we already have more than 2.4 million digital customers, up 25% - that's almost 500,000 new digital customers in the year. This is equivalent to 37% of our total portfolio of individual and self-employed customers. And users of the app and website have now totaled nearly 2.15 million, a 28% increase.

With regard to business development, we will place more emphasis on:

• Ensuring adequate rates and improving the efficiency of operations, especially in terms of benefits.
• Expanding our offer in Life Protection insurance and taking advantage of the optimal conditions for the distribution of Life Savings and Retirement insurance.
• Managing our offer of solutions for companies in a more transversal way, including business risks and the protection of workers and their families.

We are absolutely certain that our specific plans in Spain will result in significant improvements in the technical result and profitability that our country provides for the Group as a whole.

Portugal performed very positively in the year, with magnificent growth in both premiums and profits. Our expectations for the country are very optimistic, both for the development of our own network and for what our bancassurance channels can provide.

Brazil, the second most important country in the world for MAPFRE, reported an excellent financial result. The technical adjustments made in the main lines have taken effect; this is particularly true in the case of Auto, where the combined ratio improved by more than 12 percentage points, and Life Protection, with historic profitability due to both the excellent interest rate situation in this country and the low loss ratio of the products we offer, mainly through our partner Banco do Brasil.

In terms of agricultural insurance, a line in which we are leaders together with our partner Banco do Brasil, we continue to grow, and we managed to greatly reduce the loss experience, aided by the excellent weather in 2023.

In short, our improved technical management, portfolio restructuring, structural adjustments, and creation of new capabilities, together with a good financial result, all led to Brazil delivering fantastic numbers. Our continued success there involves making our operations more efficient, using technology and processes that allow us to boost productivity while improving the perception of our customers and distributors, seeking to increase their loyalty to our company and improving product offer, service, and retention. And, of course, we'll keep working with our partner, Banco do Brasil, to continue growing vigorously and profitably, taking

advantage of the bank's commercial strength, the country's size and economy,

and the still-low rate of insurance penetration.

Elsewhere in Latin America, we also delivered fantastic results for 2023. The region improved its indicators, showing a good technical balance. As always, Peru and Mexico were standout countries for us - the largest and most profitable countries in the area. In Peru, despite the country's political challenges, there are still significant opportunities for the insurance business. Our excellent market position, nationwide presence with our own network, and excellent diversification between Life and Non-Life are strengths that, together with our proven management capacity over many years, suggest that we will continue to achieve good results in this country in the coming years.

In Mexico, we took another step forward with the acquisition of Insignia Life, adding a powerful Life insurance distribution network to our sales force to increase the diversification of our portfolio. 2023 was an excellent year, no doubt, but the outlook for our activity in this country is bound to improve, due to both the

quality of our management and Mexico's low level of insurance development. I

would also like to highlight the growing weight our businesses are acquiring in the Dominican Republic, which is a product of the trust we place in our partner, the BHD financial group, to ensure we can keep growing our operations in a healthy manner in this lovely Caribbean country.

In Latin America as a whole, we're developing a strategy of greater diversification, promoting the Life business more, reducing costs, and improving efficiency, while consolidating our excellent technical management, which is deployed throughout the region.

In the United States, as you are well aware, the Auto and Homeowners insurance lines are experiencing one of the worst crises in many decades in terms of results. The end of the pandemic saw an uncontrolled increase in claim frequency, which the insurance business either could not or did not know how to anticipate. This scenario has been a drag on MAPFRE's profitability in the United States despite the fact that we're already seeing improvements, which will undoubtedly continue to improve further in the coming months as technical, rate, and efficiency adjustments are deployed across the portfolio as a whole. It should also be noted that the significant increase in reinsurance costs in North America also

contributed to last year's negative results in the region.

However, the North American economy is in an excellent position, and that will

help us grow profitably in the coming years. We're confident that our strategy in

the United States to recover profitability is correct.

In the same region, Puerto Rico has delivered extremely positive results, which are consistent year after year and which, given the maturity of our operations and market position, will continue to be excellent.

In EMEA, the year was particularly challenging, given the inflationary environment and the negative cycle of the Auto line at a global level. The past year was aggravated by the high frequency of climate events not seen until now, which occurred in Italy and Germany. Italy was unable to offset these negative impacts with the rate increases, improved efficiency, and structural adjustments undertaken, and it will take two more years to achieve acceptable figures. As for Germany, the Auto insurance market took longer to get into difficulties due to the inflationary situation, so the highest cost increases were mainly concentrated in the final months of the year. We hope the situation will stabilize throughout this year, and that we'll get back to the positive results that this country usually delivers. Meanwhile, in charming Malta, where we have an extraordinary partner in Banco de Valetta, we managed to strengthen our leadership position and once again achieved excellent results. Fortunately, Turkey has returned to profitability, despite the volatile hyperinflationary environment and impact of the earthquake in February 2023. One highlight was the improvement in the combined ratio of almost 25 percentage points. The country's economic outlook is once again encouraging after the adjustments made by the government, which will help improve our technical and financial revenue.

Regarding other business units, the Reinsurance Unit performed brilliantly. The capital increase at MAPFRE RE, in the amount of 250 million euros, undertaken at the end of 2022 to leverage new and advantageous market conditions, has been a strong driver for this unit. It has helped it to benefit from the cycle change and grow further in the new environment of higher profitability, boosting its technical rigor while expanding its ability to serve customers. In 2023, despite the high loss experience, due to both the aforementioned earthquake in Turkey and a greater number of high-intensity claims, this unit exceeded expectations and achieved its best results in 40+ years of existence, in both premiums and net earnings. It has also continued its transformation process and integration of its

underwriting and capital management tools, which is accompanied by a technological renewal to improve and optimize operations management.

The Reinsurance Unit is facing this year with great confidence, more capacity to take advantage of the cycle, and a healthy and balanced portfolio. Its balance sheet strength, together with its solvency and technical capacity, suggests that if it is not impacted by major disasters, it will continue to be a significant contributor

to the Group's results.

MAPFRE's Global Risks unit also closed 2023 with a better-than-expectedperformance and a generalized improvement in its business indicators. Reporting its highest revenue in 15 years of existence, it is tackling 2024 with the target of increasing its acquisition of new large-businessclients to consolidate the portfolio, make it sustainable over time, and promote new lines of business, thus ensuring better business diversification.

Finally, MAWDY, our Assistance unit, also had a good year with revenues that surpassed our expectations and a very positive result. As we mentioned last year, this company has undergone an intense transformation process. As a result, it has become more digital and more focused on the countries where MAPFRE carries out other operations, with an innovation-based strategy to bring more value to its customers.

SOLUNION, the credit and surety insurance company that we operate together with Allianz Trade, obtained again, in the year of its 10th anniversary, extremely positive results. In 2024, it will continue pursuing its growth strategy, considering the complexity of the economic cycle and with a focus on strengthening technology as a differential strategic value, consolidating talent, managing financial resources efficiently, and boosting sales profitability, with prudent risk management.