GLOSSARY
In accordance with the ESMA (European Securities and Markets Authority) directives regarding transparency for the protection of investors in the European Union, this glossary includes the ALTERNATIVE PERFORMANCE MEASURES (APMs), which correspond to those financial measures that are used but not defined or explained in the applicable financial information framework. The definition of these measures establishes equivalences with accounting items used, facilitating the interpretation of the information.
CONCEPT | DEFINITION | ||
Consolidated Recurring Revenue | Insurance revenue + Reinsurance revenue + Operating revenue from Other Activities. | ||
Purpose: | |||
To measure the dimension, growth, and development of operational income in a specific period of time. | |||
The Group considers the use of this measure by geographic areas and business units relevant, as it makes it possible to assess their total contribution and monitor their development. | |||
Insurance revenue + Reinsurance revenue + Operating revenue from Other Activities Consolidated recurring revenue (Million euros) | 2025 26,352.4 2,135.4 572.1 29,059.9 | 2024 25,512.6 2,541.1 617.4 28,671.1 | |
Contractual Service Margin (CSM) | CSM of Insurance contracts measured using the Building Block Approach (BBA) + CSM of insurance contracts measured using the Variable Fee Approach (VFA) - CSM of reinsurance contracts measured using the Building Block Approach (BBA). | ||
Purpose: | |||
The Contractual Service Margin is a component of the asset or liability for the group of insurance and reinsurance contracts that represents the unearned profit the entity will recognize as it provides services in the future. It makes it possible to assess the viability of the company in the short-medium term, since the volume of future profits generated by written contracts can be determined. | |||
CSM BBA Insurance contracts + CSM VFA Insurance contracts - CSM BBA reinsurance contracts Contractual Service Margin (Million euros) | 2025 2,084.3 531.1 -15.6 2,599.8 | 2024 2,096.3 419.0 -14.0 2,501.3 | |
Financial Autonomy Ratio | Total equity / Financial debt | ||
Purpose: | |||
To measure the dependence that the company has on its creditors. This calculation involves | |||
determining the equity that the company has in relation to its debt. In consequence, the ratio gives | |||
us a relationship with their ability to borrow. | |||
Numerator Total equity Denominator Financial debt, calculated as: Subordinated liabilities + Issue of debentures and other trading securities + Debt due to credit institutions Financial Autonomy Ratio (Million euros, except Ratio) | 2025 | 2024 | |
10,514.3 | 9,985.5 | ||
1,631.3 | 1,629.9 | ||
865.6 | 864.9 | ||
125.0 | 178.0 | ||
4.0 | 3.7 | ||
Income / Total | Insurance revenue + Reinsurance revenue + Insurance/Reinsurance finance revenue + Finance | ||
Income / | revenue not related to Insurance service + Reversal of financial asset impairment provision + Result | ||
Consolidated | from equity-accounted companies + Other non-technical revenue + Positive exchange differences + | ||
Income / Total Consolidated Revenue | Reversal of asset impairment provision + Revenue from other activities (see definition). | ||
Purpose: | |||
To measure the dimension, growth, and development of the company in a specific period of time. | |||
The Group considers the use of this measurement by geographic areas and business units to be | |||
relevant, as it makes it possible to assess their total contribution and monitor their development. | |||
+ Insurance revenue + Reinsurance revenue + Insurance/Reinsurance finance revenue + Finance revenue not related to Insurance + Reversal of financial asset impairment provision + Result from equity-accounted companies + Other non-technical income + Positive exchange differences + Reversal of asset impairment provision Other Activities + Operating revenue + Revenue from fixed assets and investments + Financial income + Reversal of asset impairment provision + Result from equity-accounted companies + Positive exchange differences Consolidated Income (Million euros) | 2025 | 2024 | |
26,352.4 | 25,512.6 | ||
2,135.4 | 2,541.1 | ||
793.4 | 564.2 | ||
3,082.2 | 2,839.3 | ||
12.2 | 17.0 | ||
34.5 | 17.6 | ||
82.7 | 74.6 | ||
903.1 | 1,112.2 | ||
0.0 | 0.0 | ||
572.1 | 617.4 | ||
37.7 | 23.4 | ||
37.3 | 45.1 | ||
5.7 | 6.6 | ||
25.1 | 12.2 | ||
0.0 | 0.8 | ||
34,073.8 | 33,384.2 | ||
Insurance and Reinsurance Contract Liability | Insurance Contract Liabilities + Reinsurance Contract Liabilities | ||||
Purpose: To measure the obligations that the insurer has towards the insured or beneficiary in the event that the insured risk occurs, both for the losses that have occurred and for the remaining coverage. | |||||
Insurance Contract Liabilities + Ceded Reinsurance Contract Liabilities Insurance and Reinsurance Contract Liability (Million euros) | 2025 | 2024 | |||
40,540.5 | 39,792.9 | ||||
15.3 | 17.1 | ||||
40,555.8 | 39,810.0 | ||||
Insurance and | Insurance revenue + Reinsurance revenue | ||||
Reinsurance | |||||
Revenue | Purpose: | ||||
As with the figure for Income, it makes it possible to measure the dimension, growth and | |||||
development of the company in a specific period of time. The use of this measurement by | |||||
geographic areas and business units is also considered to be relevant, as it makes it possible to | |||||
assess their total contribution and monitor their development. | |||||
Insurance revenue + Reinsurance revenue Insurance and Reinsurance revenue (Million euros) | 2025 | 2024 | |||
26,352.4 | 25,512.6 | ||||
2,135.4 | 2,541.1 | ||||
28,487.8 | 28,053.7 | ||||
Leverage / | Financial debt / (Equity + Financial debt). | ||||
Debt ratio | |||||
Purpose: | |||||
To measure the company's financial dependence on third party resources. That is, the specific debt | |||||
ratio level at which the company is financially dependent on third parties. | |||||
Numerator Financial debt, calculated as: Subordinated liabilities + Issue of debentures and other trading securities + Debt due to credit institutions Denominator Equity + Financial debt | 2025 | 2024 | |||
1,631.3 | 1,629.9 | ||||
865.6 | 864.9 | ||||
125.0 | 178.0 | ||||
10,514.3 | 9,985.5 | ||||
2,621.9 | 2,672.8 | ||||
Debt ratio | 20.0% | 21.1% | |||
(Million euros, except %) | |||||
Non-Life Expense Ratio | Other fulfillment expenses + Acquisition expenses + Reinsurance commissions / (Insurance revenue + Reinsurance service expenses - Reinsurance commissions) | ||
Purpose: | |||
It reflects the percentage of income from premiums that is dedicated to the expenses of the insurance activity. The lower the value of the ratio, the higher the profitability. | |||
Numerator Other fulfillment expenses + Acquisition expenses + Reinsurance commissions(*) Denominator Insurance service revenue + Reinsurance service expense - Reinsurance commissions(*) Non-Life Expense Ratio (Million euros, except ratio) (*) Included in "Reinsurance service expense" | 2025 | 2024 | |
868.9 | 852.3 | ||
4,582.3 | 4,315.8 | ||
-719.5 | -688.2 | ||
21,965.7 | 21,410.0 | ||
-3,944.0 | -4,094.6 | ||
-719.5 | -688.2 | ||
27.3% | 26.9% | ||
Non-Life Loss Ratio | (Claims + Losses in onerous contract groups and reversals of these losses + Changes in liability for incurred claims + Reinsurance revenue) / (Insurance service revenue + Reinsurance service expenses - Reinsurance commissions). | ||
Purpose: | |||
Percentage that reflects the amount of premium that is consumed by claims. The lower the value of the ratio, the higher the profitability. | |||
Numerator Claims + Losses in onerous contract groups and reversals of these losses + Changes in liabilities from incurred claims + Reinsurance revenue Denominator Insurance service revenue + Reinsurance service expense - Reinsurance commissions(*) Non-Life Loss ratio (Million euros, except ratio) (*) Included in "Reinsurance service expense" | 2025 | 2024 | |
12,590.9 | 13,045.8 | ||
-38.0 | -3.5 | ||
329.8 | 394.7 | ||
-2,015.8 | -2,460.6 | ||
21,965.7 | 21,410.0 | ||
-3,944.0 | -4,094.6 | ||
-719.5 | -688.2 | ||
62.8% | 66.0% | ||
Non-Life Combined Ratio | (Non-Life expense ratio + Non-Life loss ratio) | ||
Purpose: | |||
To measure the technical profitability of Non-Life insurance. It is ideal to establish comparisons between companies in the insurance sector, since it measures the loss experience and insurance service expenses as a percentage over insurance and reinsurance revenue. | |||
A combined ratio below 100% indicates that the technical result is positive, while a combined ratio above 100% indicates that said result is negative. | |||
2025 | 2024 | ||
Non-Life expense ratio | 27.3% | 26.9% | |
+ Non-Life loss ratio | 62.8% | 66.0% | |
Non-Life Combined Ratio | 90.2% | 93.0% | |
ROE (Return on equity) | Attributable result last 12 months / Arithmetic mean of equity at the beginning and closing of the period (12 months) x 100 | ||
Purpose: | |||
The ROE (Return on equity) is an indicator used to measure the relationship between the earnings | |||
and the resources necessary to obtain them. | |||
It makes it possible to measure the return the shareholders obtain from the funds invested in the Company, i.e. the company's capacity to remunerate its shareholders. | |||
Numerator Attributable result last 12 months Denominator Arithmetic mean of attributable equity at the beginning and closing of the period Current period Previous year ROE (Million euros, except ratio) | 2025 1,132.6 9,409.9 8,888.7 12.4% | 2024 967.5 8,888.7 8,466.6 11.1% | |
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.
OTHER DEFINITIONSCONCEPT | DEFINITION |
Assets held for sale | Non-current assets classified as held for sale and from discontinued operations. |
Assets under management | Investment portfolio + Pension funds + Mutual funds and other. |
Attributable equity per share | Equity attributable to the controlling company's shareholders / number of outstanding shares |
Attributable result | Result for the year. Attributable to the controlling company. |
Dividend yield | Amount of dividend paid in the year / Average share market price in the year |
Equity attributable to the controlling company | Equity attributable to the controlling Company's shareholders |
Financial debt | Subordinated debt + Senior debt + Debt due to credit institutions. |
Foreign exchange differences | Positive foreign exchange differences + Negative foreign exchange differences. |
Financial income from investments | Insurance and reinsurance contract finance revenue + Finance revenue not related to insurance service + Result from equity-accounted companies + Reversal of financial asset impairment provision + Positive exchange differences from insurance business + Reversal of asset impairment provision from insurance business + Financial income (from other activities). |
Income from non-insurance companies and other income | Operating revenues from Other Activities + Reversal of the asset impairment provision from insurance business + Reversal of the asset impairment provision from Other Activities + Other non-technical revenue + Positive foreign exchange differences. |
Income tax | Income tax from ongoing operations. |
Interest coverage | (Results before tax and before financial expenses) / Financial expenses. |
Liabilities held for sale | Liabilities linked to non-current assets classified as held for sale and from discontinued operations |
Minority shareholders | Non-controlling interests. |
Modified duration | Asset value sensitivity to interest rate changes, representing an approximate value of the percentage variation of financial assets for each percentage point (100 basis points) change in interest rates Mathematically, it is calculated using the following formula: Where: Ct: coupon paid for the bond in period t. r: internal rate of return (IRR) of the bond. P: is the price of the bond. |
(Insurance business) Net financial income / Financial result | Insurance and Reinsurance Service finance revenue + Finance revenue not related to insurance service + Share in profits from equity-accounted companies + Reversal of financial asset impairment provision + Positive exchange differences from insurance business + Reversal of asset impairment provision from insurance business + Insurance/reinsurance service finance expense + Finance expense not related to insurance activity + Allowance to financial asset impairment provision + Allowance to asset impairment provision + Share in losses from equity-accounted companies. |
(Other activities) Revenue from other activities | Operating revenue + Revenue from fixed assets and investments + Financial income + Share in profits from equity-accounted companies + Positive exchange differences + Reversal of asset impairment provision. |
(Other activities) Net financial income and other | Revenue from fixed assets and investments + Expense from fixed assets and investments + Net financial income + Negative consolidation differences + Share in profits from equity-accounted companies + Positive exchange differences + Negative exchange differences + Reversal of asset impairment provision + Allowance to asset impairment provision + Result from disposal of non-current assets held for sale, not included in discontinued activities |
Other assets | Inventories + Tax on profits receivable + Other tax receivables + Corporate and other receivables + Other assets + Adjustments for prepayment. |
Other liabilities | Other financial liabilities + Tax on profits payable + Other tax liabilities + Other debts + Adjustments for prepayment. |
Other non-technical revenue and expenses | Other non-technical revenue + Other non-technical expenses. |
(Other comprehensive income) Other recognized revenue and expenses in equity | Equity-accounted entities + Other recognized revenue and expenses. |
Pay out | (Total dividend / Result for the year attributable to the controlling company) x 100 |
Real estate | Real estate for own use + real estate investment. |
Result after tax | Result after tax from ongoing operations. |
Result before tax | Result before tax from ongoing operations. |
Result before tax and financial expenses (EBIT) | Result before tax and before financial expenses. |
Result for the period | Cumulative result for the period. |
Senior debt | Issue of debentures and other negotiable securities. |
Shareholders' equity | Equity attributable to the controlling Company's shareholders. |
Subordinated debt | Subordinated liabilities. |
Technical result | Result from Insurance and reinsurance Service |
Total dividend | Interim dividend + Final dividend. |
Total equity | Equity |