Individual annual accounts 2025

(Together with the annual accounts and Management Report of MAPFRE, S.A. for the year ended 31 December 2025)

(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

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

To the Shareholders of MAPFRE, S.A.

REPORT ON THE ANNUAL ACCOUNTS

Opinion

We have audited the annual accounts of MAPFRE, S.A. (the "Company"), which comprise the balance sheet at 31 December 2025, and the income statement, statement of total changes in equity, cash flow statement and notes for the year then ended.

In our opinion, the accompanying annual accounts give a true and fair view, in all material respects, of the equity and financial position of the Company at 31 December 2025, and of its financial performance and its cash flows for the year then ended in accordance with the applicable financial reporting framework, (specified in note 2 to the accompanying annual accounts) and, in particular, with the accounting principles and criteria set forth therein.

Basis for Opinion

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

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

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

KPMG Auditores S.L., a limited liability Spanish company and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

Paseo de la Castellana, 259C - 28046 Madrid

Entered into the Spanish Official Register of Auditors with number S0702,

and the Spanish Institute of Registered Auditors' list of companies with reference No. 10. Reg. Mer Madrid, T. 11.961, F. 90, Sec. 8, H. M -188.007, Inscrip. 9.

Tax identification number (NIF): B-78510153

Key Audit Matters

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

Other Information: Management Report

Other information solely comprises the 2025 Management Report, the preparation of which is the responsibility of the parent's directors and which does not form an integral part of the annual accounts.

Our audit opinion on the annual accounts does not encompass the Management Report. Our responsibility regarding the information contained in the Management Report, in conformity with prevailing audit regulations in Spain, entails:

1. Checking only that the non-financial information statement and 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 prevailing regulations and, if not, disclose this fact.

2. Assessing and reporting on the consistency of the remaining information included in the Management Report with the financial statements, based on the knowledge of the entity obtained during the audit, in addition to evaluating and reporting on whether the content and presentation of this part of the directors' report are in accordance 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 directors' report is consistent with that disclosed in the annual accounts for 2025 and its content and presentation are in accordance with applicable regulations.

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

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

   In preparing the annual accounts, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

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

   Auditor's Responsibilities for the Audit of the Annual Accounts

   Our objectives are to obtain reasonable assurance about whether the annual accounts as a whole are 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 annual accounts.

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

   • Identify and assess the risks of material misstatement of the annual accounts, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

   • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, and not for the purpose of expressing an opinion on the effectiveness of the entity's internal control.

   • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

   • Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the annual accounts or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.

   • Evaluate the overall presentation, structure and content of the annual accounts, including the disclosures, and whether the annual accounts represent the underlying transactions and events in a manner that achieves a true and fair view.

   We communicate with the audit committee of MAPFRE, S.A. regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

   We also provide the Company's audit 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 Company's audit committee, we determine those that were of most significance in the audit of the annual accounts of the current period and which are therefore the key audit matters.

   We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter.

   REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

   European single electronic format

   We have examined the digital file of the European single electronic format (ESEF) of MAPFRE, S.A. for the 2025 financial year, which includes an XHTML file containing the financial statements for the year, 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 2025 financial year, in accordance with the formatting 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 regard, they have incorporated the Corporate Governance Report and the Annual Report on Directors' Remuneration by reference in the Management Report.

   Our responsibility consists of examining the digital file prepared by the directors of the 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 financial statements included in the aforementioned digital file correspond in their entirety to those of the financial statements that we have audited, and whether the financial statements have been formatted, in all material respects, in accordance with the ESEF Regulation.

   In our opinion, the digital file examined corresponds in its entirety to the audited financial statements, which are presented, in all material respects, in accordance with the ESEF Regulation.

   Additional Report to the Audit Committee

   The opinion expressed in this report is consistent with our additional report to the Company's Audit Committee dated 11 February 2026.

   Contract Period

   We were appointed as auditors by the shareholders of MAPFRE, S.A. at the ordinary general meeting on 15 March 2024 for a period of 4 years, from the year ended 31 December of 2024, inclusive.

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

   KPMG Auditores, S.L.

   On the Spanish Official

   Register of Auditors ("ROAC") with No. S0702

   (Signed on original in Spanish)

   Álvaro Vivanco Rueda

   On the Spanish Official Register of Auditors ("ROAC") with No. 24,151 11 February 2026

   INDIVIDUAL ANNUAL ACCOUNTS AND INDIVIDUAL MANAGEMENT REPORT 2025 MAPFRE S.A. INDIVIDUAL ANNUAL ACCOUNTS 2025 MAPFRE S.A.

   INDIVIDUAL ANNUAL ACCOUNTS 2025 CONTENTS
   BALANCE SHEET	4
   INCOME STATEMENT	6
   STATEMENT OF CHANGES IN EQUITY	7
   CASH FLOW STATEMENT	9
   ANNUAL REPORT	10
   1. Company activity	10
   2. Basis of presentation of the annual accounts	10
   3. Application of results	11
   4. Recognition and measurement standards	12
   5. Property, plant and equipment	21
   6. Intangible fixed assets	22
   7. Leasing	22
   8. Financial instruments	23
   9. Shareholders' equity	31
   10. Debentures	32
   11. Foreign currency	33
   12. Tax position	34
   13. Revenue and expenses	44
   14. Provisions and contingencies	43
   15. Environmental information	45
   16. Medium- and long-term employee remuneration and stock-based payments	45
   17. Subsequent events	46
   18. Related-party transactions	48
   19 Other information	51
   Appendix 1	51

   BALANCE SHEET AS ON DECEMBER 31, 2025 AND 2024

   	ASSETS	Notes from the annual report	2025	2024
   A)	NON-CURRENT ASSETS		10,335,550	10,315,483
   I.	Intangible fixed assets	6	15	18
   5	Computer applications		15	18
   II.	Property, plant and equipment	5	12,721	12,634
   1	Land and buildings		10,816	11,005
   2	Technical facilities and other property, plant and equipment		1,746	1,626
   3	Fixed assets in progress and advance payments		159	3
   IV.	Long-term investments in Group and associated companies	8	10,161,015	10,170,668
   1	Equity instruments		10,161,015	10,170,668
   2	Loans to companies
   V.	Long-term financial investments	8	83,961	73,507
   1	Equity instruments		69,456	58,625
   2	Loans to third parties		69	68
   3	Debt securities		9,554	9,970
   5	Other financial assets		4,882	4,844
   VI.	Deferred tax assets	12	77,838	58,656
   B)	CURRENT ASSETS		371,073	308,079
   III.	Trade debtors and other accounts receivable		233,895	184,609
   1	Trade receivables for sales and services rendered	8	2	3
   3	Sundry receivables	8	240	510
   4	Personnel	8	716	670
   5	Current tax assets	12	49,383	10,976
   6	Other receivables from government agencies	12	183,554	172,450
   IV.	Short-term investments in group and associated companies	8.18	98,820	103,108
   5	Other financial assets		98,820	103,108
   V.	Short-term financial investments	8	121	120
   2	Loans to third parties		57	56
   3	Debt securities		64	64
   VI.	Short-term accruals/deferrals		77	189
   VII.	Cash and other equivalent liquid assets	8	38,160	20,053
   1	Cash		38,160	20,053

   TOTAL ASSETS (A+B) 10,706,623 10,623,562

   Thousand euros

   BALANCE SHEET AS ON DECEMBER 31, 2025 AND 2024

   EQUITY AND LIABILITIES Notes from the 2025 2024 annual report
   A)	EQUITY		7,656,880	7,742,130
   A-1)	SHAREHOLDERS' EQUITY		7,647,494	7,736,647
   I.	Capital	9	307,955	307,955
   1	Authorized share capital		307,955	307,955
   II.	Share premium	9	3,338,720	3,338,720
   III.	Reserves		3,612,650	3,611,534
   1	Legal and statutory	9	61,591	61,591
   2	Other reserves		3,551,059	3,549,943
   IV.	Treasury Stock	9	(52,010)	(25,543)
   V.	Results for previous fiscal years		211,423	194,540
   1	Surplus		211,423	194,540
   VII.	Result for the period	3	444,325	509,612
   VIII.	(Interim dividend)	3	(215,569)	(200,171)
   IX.	Other equity instruments		-	-
   A-2)	VALUATION CHANGE ADJUSTMENTS		9,386	5,483
   I.	Financial assets at fair value with changes in equity		9,386	5,483
   B)	NON-CURRENT LIABILITIES		1,630,896	2,566,586
   I.	Long-term provisions	14	32,914	28,978
   1	Long-term employee benefit obligations		32,914	28,978
   II.	Long-term payables		1,594,746	2,534,543
   1	Debentures and other negotiable securities	8, 10	1,594,746	2,449,543
   2	Due to credit institutions	8	-	85,000
   IV.	Deferred tax liabilities	12	3,236	3,065
   C)	CURRENT LIABILITIES		1,418,847	314,846
   III.	Current debt		902,241	45,296
   1	Debentures and other negotiable securities	8 10	902,239	45,220
   2	Due to credit institutions	8	-	30
   5	Other financial liabilities	8	2	46
   IV.	Current debt with Group companies and associates	8.18	450,508	228,335
   V.	Trade and other payables		66,098	39,393
   3	Sundry creditors	8	12,258	4,680
   4	Personnel (remuneration pending payment)	8	28,984	17,924
   5	Current tax liabilities		7,630	-
   6	Other debts with government agencies		17,226	16,789
   VI.	Short-term accruals/deferrals	8	-	1,822

   TOTAL EQUITY AND LIABILITIES (A+B+C) 10,706,623 10,623,562

   Thousand euros

   INCOME STATEMENT FOR YEARS ENDING DECEMBER 31, 2025 AND 2024

   INCOME STATEMENT	Notes from the annual report	2025	2024
   ONGOING OPERATIONS
   Revenue		720,150	721,260
   Dividends and interest from Group companies and associates	8.18	631,385	647,245
   Dividends		631,369	647,238
   Interest		16	7
   Other operating revenue	18	88,765	74,015
   Non-core and other operating revenue		88,765	74,015
   Personnel expenses		(110,117)	(102,108)
   Wages, salaries and similar		(58,146)	(64,187)
   Social security contributions	13	(25,768)	(22,779)
   Provisions	14	(26,203)	(15,142)
   Other operating expenses		(95,716)	(79,476)
   External services		(95,677)	(79,441)
   Taxes		(39)	(35)
   Amortization and depreciation of fixed assets	5.6	(574)	(840)
   Impairment of Group companies and associates	8	(31,620)	11,111
   Other results		(661)	136
   OPERATING REVENUE		481,462	550,083
   Financial revenue	8	4,511	3,999
   Acquisitions in equity instruments		1,571	798
   From third parties		1,571	798
   From negotiable securities and other financial instruments		2,940	3,201
   From third parties		2,940	3,201
   Financial expenses		(83,043)	(90,592)
   For debt with Group companies and associates	8.18	(1,224)	(4,530)
   For debt with third parties	8	(81,640)	(85,880)
   For discounting of provisions	8	(179)	(182)
   Fair value variation in financial instruments	8	-	-
   Fair value with changes in gains or losses		-	-
   Transfer of fair value adjustments with changes in equity		-	-
   Foreign exchange differences	8	(41)	(2)
   Impairment and gains/losses on financial instrument disposal	8	(6)	1,369
   Impairment and loss		(6)	-
   Earnings from disposal and other		-	1,369
   FINANCIAL RESULT		(78,579)	(85,226)
   RESULT BEFORE TAX	12	402,883	464,857
   Tax on profits	12	41,442	44,755
   RESULT FOR THE PERIOD FROM ONGOING OPERATIONS	12	444,325	509,612
   RESULT FOR THE PERIOD	3	444,325	509,612
   Thousand euros

   ‌STATEMENT OF CHANGES IN EQUITY AS ON DECEMBER 31, 2025 AND 2024
   1. STATEMENT OF RECOGNIZED REVENUE AND EXPENSES

      Notes from INCOME STATEMENT the annual 2025 2024
      	report
      A) Result of the income statement	3	444,325	509,612
      Revenue and expenses posted directly to equity I. For valuation of financial instruments 1. Financial assets at fair value with changes in equity		5,204	2,612
      VII. Tax effect		(1,301)	(653)
      B) Total revenue and expenses posted directly in equity (I+IV+VII)		3,903	1,959
      Transfers to the income statement VIII. For valuation of financial instruments 1. Financial assets at fair value with changes in equity		-	-
      XIII. Tax effect		-	-
      C) Total transfers to the income statement (VIII+XIII)		-	-
      TOTAL RECOGNIZED REVENUE AND EXPENSES (A+B+C)		448,228	511,571
      Thousand euros

      MAPFRE S.A.

   2. ‌STATEMENT OF TOTAL CHANGES IN EQUITY

8 Individual Annual Accounts 2025

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

Thousand euros

FISCAL YEAR 2025

1. Company activity

   Mapfre S.A. (the "Company") is a corporation principally involved in investing its funds in real-estate assets and tradeable financial securities.

   The Company's scope of action is mainly related to the Spanish territory.

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

   The Company is a subsidiary of CARTERA MAPFRE S.L., a Single-Member Company, with its registered address at Carretera de Pozuelo, 52, Majadahonda (Madrid, Spain). The annual accounts of that company for the year ended December 31, 2025, will be prepared by its Board of Directors on March 25, 2025, and will be placed on file at the Madrid Companies' Registry.

   The ultimate controlling company is Fundación Mapfre, a non-profit company whose registered address is Paseo de Recoletos 23, Madrid and whose consolidated annual accounts will be filed with the Madrid Companies' Registry, with a copy also sent to the Foundations Registry.

2. ‌Basis of presentation of the annual accounts
   1. TRUE AND FAIR VIEW

      The true and fair view of the net worth, financial position, and results, as well as the veracity of the cash flows included in the cash flow statement, result from the application of the statutory provisions on accounting practice, without it being necessary, in the opinion of the Directors, to include supplementary information.

      The Company's Board of Directors expects the individual and consolidated annual accounts for fiscal year 2025, prepared on February 11, 2026, to be approved by the Annual General Meeting with no changes.

   2. ACCOUNTING STANDARDS

      The annual accounts have been prepared in accordance with the Spanish General Chart of Accounts, approved under Royal Decree 1514/2007 of November 16 and subsequently amended through Royal Decree 1159/2010 of September 17, Royal Decree 602/2016 of December 2, and Royal Decree 1/2021 of January 12, as well as with all other applicable mercantile legislation and current regulations.

   3. CRITICAL ASPECTS OF MEASURING AND ESTIMATING UNCERTAINTY

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

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

   4. COMPARISON OF THE INFORMATION

      There are no reasons why the accounts for the year should not be compared with those of the previous year.

      CORRECTION OF ERRORS

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

3. ‌Application of results

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

   BASIS OF DISTRIBUTION	AMOUNT
   Income Statement	444,324,836.55
   Surplus	211,422,738.32
   TOTAL	655,747,574.87
   DISTRIBUTION	AMOUNT
   To dividends	554,319,589.14
   To retained earnings	101,427,985.73
   TOTAL	655,747,574.87
   Figures in euros

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

   This dividend distribution is based on a thorough and reflective analysis of the MAPFRE Group's situation, and does not in any way compromise the future solvency.

   During the fiscal year, the Company distributed an interim dividend for a total amount of 215,568,729.11 euros (200,170,962.75 euros in 2024), which is recorded in equity under the heading Interim dividend.

   Additionally, an extraordinary dividend has been distributed from reserves in the amount of 4,619,329.91 euros, as payment linked to the participation of the shareholders in the Annual General Meeting.

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

   ITEM	DATE OF AGREEMENT
   	10/30/2025
   Cash available on date of agreement	104,307
   Increases in cash forecast within one year	2,222,100
   (+) For expected current collection transactions	769,100
   (+) For the planned financial transactions	1,453,000
   Decreases in cash forecast within one year	(1,647,571)
   (-) For expected current collection transactions	(119,227)
   (-) For expected financial transactions	(1,528,344)
   Cash available within one year	678,836
   Thousand euros

   The distribution of profits for fiscal year 2024, carried out during 2025, is presented in the Statement of Total Changes in Equity.

4. ‌Recognition and measurement standards

   The recognition and measurement standards applied are indicated below:

   1. Fixed assets

      Intangible

      The assets recorded under intangible fixed assets meet the identifiability criterion and are presented less accumulated amortization and possible impairment losses.

      Intangible assets are valued at the cost of acquisition or production and are typically systematically amortized according to their useful life.

      Property, plant and equipment

      The assets included under property, plant and equipment are measured at cost of acquisition or production, including indirect taxes that are not directly recoverable from the Spanish tax authorities, less cumulative amortization and impairment losses. Depreciation is calculated on a straight-line basis, on the cost of the asset less the residual value and less the value of land, in accordance with the estimated useful life of each asset.

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

      Impairment of fixed assets

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

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

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

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

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

   2. Operational leasing

      The Company classifies its leases as operating leases as the lessor has not transferred substantially all the risks and rewards of ownership to the lessee. The revenue and expenses arising from operating leasing are recorded on the income statement over the life of the contract on an accruals basis.

   3. Financial instruments

      FINANCIAL ASSETS

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

      Transactions performed in the foreign currency market are recognized on the settlement date, whereas financial assets traded in secondary markets in the Spanish markets are recognized on the trade date in the case of equity instruments and on the settlement date in the case of debt instruments.

      Financial assets are classified as:

      Financial assets at fair value with changes in the income statement

      This category includes financial assets held for trading and financial assets not classified in any of the other categories.

      The concept of trading financial instruments reflects active and frequent purchases and sales with the aim of generating a profit from short-term fluctuations in the price or brokerage margin.

      Financial assets in this category are initially valued at their fair value, which, unless there is evidence to the contrary, will be the transaction price, equivalent to the fair value of the consideration given. Transaction costs directly attributable to them are recognized on the income statement for the current fiscal year.

      After initial recognition, they are measured at fair value with changes in the income statement.

      For equity instruments that are neither held for trading nor valued at cost, an irrevocable choice has been made at the time of their initial recognition to present subsequent changes in the fair value directly in equity.

      Financial assets at amortized cost

      This category includes financial assets, even when admitted to trading on an organized market, in which the investment is held for the purpose of receiving cash flows consisting solely of principal and interest payments on the outstanding principal balance (even if the transaction is agreed at zero interest or below the market rate).

      Assets are considered to meet this objective even if sales have taken place or are expected to take place in the future. For this purpose, the frequency, amount, calendar, and reasons for sales in previous years, as well as expectations of future sales are considered.

      In general, this category includes trade and non-trade receivables.

      They are initially valued at their fair value, which, unless there is evidence to the contrary, is the transaction price, equivalent to the fair value of the consideration given plus the transaction costs that are directly attributable to them.

      In the event of receivables for sales operations and other items such as advances, receivables due to personnel or dividends to be collected with maturity no later than one year, with no type of contractual interest rate, are valued at face value when the effect of not discounting cash flows is not significant, both at initial recognition and in subsequent valuation, unless there is impairment.

      These assets are subsequently valued at their amortized cost, accounting for accrued interest on the income statement, applying the effective interest rate method.

      Impairment is deemed to exist when there is a reduction or delay in estimated future cash flows that may be caused by the debtor's insolvency.

      Valuation adjustments due to impairment and their reversal, if applicable, are performed at the close of the fiscal year, recognizing an expense or revenue, respectively, on the income statement. However, the reversal of the loss is limited to the amortized cost that the assets would have had if the impairment loss had not been recognized.

      Financial assets at cost

      This category includes investments in the equity of group, multi-group, and associated companies. They are initially recognized and valued at cost, which is equivalent to the fair value of the compensation provided, plus any directly attributable transaction costs.

      The subsequent valuation is carried out at cost less, where appropriate, the accumulated amount of the valuation adjustments for impairment.

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

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

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

      At the end of the year, when there is objective evidence that the carrying amount of the investment is not recoverable, the necessary value adjustments are made.

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

      Impairment losses and their reversal are recognized as an expense or income for the year on the income statement.

      Reversal of impairment is limited to the book value of the investment that would be recognized on the reversal date if the impairment had not been registered. However, if an investment was made prior to its classification as a group, multi-group or associate company, and valuation adjustments posted directly to equity and derived from that investment were made before that classification, said adjustments are generally maintained after its classification and until the investment's disposal or cancellation, at which time they are recorded on the income statement.

      Financial assets at fair value with changes in equity

      This category includes financial assets whose contractual conditions give rise to cash flows that are solely the principal and interest collected on the outstanding principal amount, and that are not held for trading or classified in the Financial assets at amortized cost category.

      This category also includes investments in equity instruments for which the irrevocable option has been exercised at initial recognition to present subsequent changes directly in equity.

      They are initially valued at their fair value, which, unless there is evidence to the contrary, is the transaction price, equivalent to the fair value of the consideration given plus the directly attributable transaction costs.

      The subsequent valuation is carried out at fair value, and changes in value are posted to equity, being reclassified on the income statement if sold or in the event of impairment of the financial asset.

      Corrections in value due to impairment and gains or losses arising from foreign exchange differences in monetary financial assets in foreign currencies are recorded on the income statement.

      The amount of interest calculated applying the effective interest rate method and dividends accrued are also recorded on the income statement.

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

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

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

      At least at the close of the financial year, the pertinent valuation adjustments are made, provided there is objective evidence that the value of a financial asset included in this category is impaired, the amount of which is recognized on the income statement. Reversals of valuation adjustments are credited to the income statement, with the exception of those associated with equity instruments, the reversal for which is recognized directly in equity.

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

      Determination of fair value

      The fair value of financial assets is determined through the use of market prices, as long as the available quotations of the instruments can be considered representative, as they are regularly published in the usual information systems provided by recognized financial intermediaries.

      A fair value hierarchy is established according to the variables used, classifying the estimates into three levels:

      • Level 1: those that use unadjusted quoted prices in active markets for identical assets or liabilities, which the company can access on the valuation date.

      • Level 2: those based on prices quoted in active markets for similar instruments or other assessment techniques in which all significant variables are based on directly or indirectly observable market data.

      • Level 3: those in which some significant variable is not based on observable market data.

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

        For mutual funds holdings besides those classified in Group companies, the fair value will be the fund liquidation value as of the date of valuation.

        Cash and other equivalent liquid assets

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

        Interest and dividends received from financial assets

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

        For these purposes, on initial measurement of financial assets, the amount of accrued and unmatured explicit interest and dividends agreed at the time of acquisition are recognized separately on the basis of their maturity.

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

        Derecognition of financial assets

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

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

        FINANCIAL LIABILITIES

        Instruments issued, incurred or assumed that give rise to a direct or indirect contractual obligation for the Company, based on its economic reality, to deliver cash or another financial asset or to exchange financial assets or liabilities with third parties on unfavorable terms are recognized as financial liabilities.

        Financial liabilities are classified as:

        Financial liabilities at amortized cost

        These correspond to trade and non-trade payables.

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

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

        Derecognition of financial liabilities

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

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

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

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

        Own equity instruments

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

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

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

   4. Foreign currency transactions

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

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

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

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

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

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

   5. Taxation of profits

      Tax on profits is treated as an expense in the fiscal year and is recorded as such on the consolidated income statement including both the tax charge for the current tax and the effect corresponding to the movement in deferred taxes.

      However, income tax relating to items whose valuation changes are recognized directly in equity is recognized in equity rather than on the income statement, and changes in valuation of these items are recognized net of the tax effect.

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

      The Company files consolidated tax returns, and the corporate income tax expense accrued by companies filing under consolidated tax on profits is determined by considering, in addition to the parameters for individual taxation, the following:

      • Temporary and permanent differences arising as a result of eliminations of the results of operations between Group companies arising from the process of determining the consolidated tax base.

      • The deductions and allowances that correspond to each Group company under the consolidated tax regime; for these purposes, the deductions and allowances will be allocated to the Company that has carried on the activity or obtained the income necessary to obtain the right to the tax deduction or allowance.

      Temporary differences derived from the elimination of profits between companies of the Tax Group are recognized in the company that generated the result and are measured at the tax rate applicable to it.

      On the portion of the negative tax results from some of the Group companies that have been offset by the rest of the Group companies, a reciprocal credit and debit arises between the companies to which they correspond and the companies that offset it.

      From 2023 to 2025, the Tax Group must determine its taxable income by considering the individual taxable income and 50% of the individual tax loss carryforwards of the companies comprising the Tax Group. The amount of the individual tax loss carryforwards not included in the taxable income of the Group for each fiscal year will be integrated in equal parts over the next 10 fiscal years.

      With regard to negative tax results that cannot be offset by the rest of the Group companies, the tax receivables generated by the negative tax bases that are compensated are recognized as deferred tax assets by the corresponding companies, considering the Tax Group as a taxable person for their recovery.

      The deductions and discounts of the tax on profits quota will affect the calculation of the tax accrued in each company for the effective amount of the same that is applicable in the Group and not for the amount that would correspond to each company as an individual tax.

      As the Group's controlling Company, the Company recognizes the total amount payable for consolidated corporate income tax as receivables or debts with Group companies and associates, as appropriate.

      Deferred taxes are recorded for the temporary differences existing at the balance sheet date between the tax base of the assets and liabilities and their book values. The tax base of an equity item is the amount attributed to it for tax purposes.

      The tax effect of temporary differences is included in the corresponding headings of Deferred tax assets and Deferred tax liabilities, except in cases of the exceptions provided for in the current regulations.

      The Company recognizes deferred tax assets for all deductible temporary differences, unused tax receivables, and tax loss carryforwards to the extent that it is probable that the Company or the Tax Group will have future tax gains that will allow the application of these assets.

      Unless proven otherwise, it is not considered probable that the Company will have future taxable profits when it is anticipated that its future recovery will occur in a period of more than ten years from the year-end date.

      The Company recognizes deferred tax assets that have not been recognized due to exceeding the recovery period of ten years, as long as the future reversal period does not exceed ten years from the fiscal year-end date or when there are taxable temporary differences in sufficient amounts.

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

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

      In December 2024, the law establishing a top-up tax on multinational groups and large domestic groups (Law 7/2024 or the Supplementary Tax Law), which implements the Pillar Two rules in Spain, was definitively approved. The Supplementary Tax Law applies to the Mapfre Group as from January 1, 2024. Accordingly, income earned by Group companies that is subject, at the jurisdictional level, to an effective tax rate below the minimum rate of 15% is subject to the Supplementary Tax.

      The Mapfre Group has elected to apply the exception not to recognize and disclose deferred tax assets and liabilities arising from the application of the Supplementary Tax (Pillar Two rules).

      As of 2022, the Tax Group to which the company belongs must calculate the minimum tax liability pursuant to article 30 bis of Law 27/2014 for the purpose of determining its tax on profits to be paid. In fiscal years 2025 and 2024, the Tax Group was not affected by the minimum tax liability.

   6. Revenue and expenses

      The holding of equity investments in Group and associated companies is the Company's ordinary activity and for which it obtains regular revenue. In accordance with the criterion stated by the Institute of Accounting and Accounts Auditing regarding the determination of the revenue of holding companies (consultation number 2 of the Official Bulletin of the Institute of Accounting and Accounts Auditing number 79), the dividends of Group and associated companies and the interest received on loans to Group and associated companies are shown as Revenue, as well as the fees received for the provision of services to other Group companies and the rebilling of common expenses. Likewise, the heading Impairment and result from disposal of equity instruments in Group and associated companies is considered within the operating result.

      Revenue derived from a contract is recognized as control over the committed goods or services is transferred to the client.

      Revenue derived from commitments (in general, for the provision of services) that are fulfilled over time is recognized according to the degree of compliance with contractual obligations.

      When, on a given date, it is not possible to reasonably measure the degree of fulfillment of the obligation, only revenue and the corresponding consideration are recognized in an amount equivalent to the costs incurred up to that date.

      Interest income and expenses are recognized using the effective interest rate method.

      Dividend income is recognized when the right to receive payment is established. When dividends unequivocally derive from reserves generated before the acquisition, the value of the investment will be adjusted.

   7. Provisions and contingencies

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

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

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

   8. Personnel expenses

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

      Short-term remuneration

      They are accounted for on the basis of the services rendered by the employees on an accrual basis. Post-employment benefits

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

      Defined contribution plans

      These are those in which the Company makes pre-determined contributions to a separate company (whether linked to the Group or external) and has no legal or implicit obligation to make any additional contributions in the event of an insufficiency of assets to honor the payment of benefits. For this reason, the obligation consists solely of making the contribution that is agreed to a fund, and the amount of the benefits to be received by employees is determined by the contributions made plus the return obtained on the investments where the fund is materialized.

      Defined benefit plans

      These are plans that establish the benefit to be received by employees at the time of retirement, normally based on factors such as remuneration.

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

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

      Actuarial gains and losses are recognized in equity.

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

      Termination compensation

      Termination payments are recognized as a liability and as an expense when there is a demonstrable intention of termination of the employment relationship before the normal retirement date of employees, or when there is an offer to encourage the voluntary termination of employment contracts.

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

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

      Incentive plans

      During the 2019 fiscal year, a medium-term incentive plan was approved for certain members of Mapfre's executive team of extraordinary nature, non-cumulative, and multi-year, which ran from January 1, 2019, to March 31, 2022, with payment of part of the incentives deferred to the 2023-2025 period. The payment of incentives is subject to the fulfillment of certain corporate and specific objectives, as well as to the executive's permanence in the Company or in the Group. It will be paid partially in cash (50%) and partially in Mapfre S.A. shares (50%), and is subject to reduction or recovery clauses.

      On February 9, 2022, the Board of Directors of Mapfre S.A. approved an incentive plan of extraordinary and non-cumulative nature for the period 2022-2026, consisting of three overlapping cycles with an objective measurement period of three-year duration each. This plan is intended for certain key executives and professionals of the Company and of group companies, including executive directors of the Company, and subject to the fulfillment of objectives established in the Mapfre Group's strategic plan as well as to the executive remaining in the Company or Group. It will be paid partially in cash and through the delivery of shares of Mapfre S.A. and is subject to reduction or recovery clauses as well as to retention periods for the shares.

      On February 11, 2025, the Board of Directors of Mapfre S.A. approved an incentive plan of extraordinary and non-cumulative nature for the period 2025-2029, consisting of three overlapping cycles with an objective measurement period of three-year duration each. This new plan is intended for certain key executives and professionals of the Company and of Group companies, including executive directors of the Company, and is subject to the fulfillment of objectives established in the Mapfre Group's strategic plan as well as to the executive's permanence in the Company or in the Group. It will be paid partially in cash and through the delivery of shares of Mapfre S.A. and is subject to reduction or recovery clauses as well as to retention periods for the shares.

      At the close of each fiscal year, the fulfillment of objectives is assessed, recording the amount accrued in the income statement with a credit to a liability account.

      Each year, until the concession's irrevocability date, the number of equity instruments included in the determination of the amount of the transaction is adjusted. No further additional adjustments are made after the re-revocability date of the concession.

      Stock-based remuneration plans

      In the fiscal years 2023, 2024, and 2025, stock-based remuneration plans were launched for employees in Spain, with their execution taking effect in the following fiscal year. These plans do not include the delivery of additional shares free of charge.

      The transactions derived from each plan are measured at the fair value of the equity instruments assigned at the date of the concession agreement.

      The Company cancels the treasury stock delivered on a monthly basis, recording the difference with respect to the value of the shares delivered in voluntary reserves.

   9. Related-party transactions

      Transactions with related parties linked to the usual activities of the Company are conducted under market conditions and are recorded according to the aforementioned valuation rules.

5. ‌Property, plant and equipment

   OPENING ADDITIONS DISPOSALS CLOSING ITEMS BALANCE BALANCE
   2025	2024	2025	2024	2025	2024	2025	2024
   Land 4,021	4,021	-	-	-	-	4,021	4,021
   Construction 9,433	9,433	-	-	-	-	9,433	9,433
   Technical facilities and other 7,815	7,605	531	212	(30)	(2)	8,316	7,815
   Fixed assets in progress and 3	-	156	3	(4)	-	155	3
   TOTAL COST 21,272	21,059	687	215	(34)	(2)	21,925	21,272
   Cumulative amortization (8,638)	(8,091)	(566)	(547)	-	-	(9,204)	(8,638)
   NET TOTAL 12,634	12,968	121	(332)	(34)	(2)	12,721	12,634

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

   property, plant and equipment advance payments

   Thousand euros

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

   The amortization of items of property, plant, and equipment is calculated on a straight-line basis according to its useful life. The depreciation rates applied by group of items are detailed below.

   ITEM GROUPS % AMORTIZATION

   Buildings	2
   Vehicles	16
   Furniture and fittings	10
   Data processing equipment	25

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

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

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

   There are no firm commitments to purchase or sell items of property, plant, and equipment. The Company has policies covering the net book value of property, plant, and equipment.

6. ‌Intangible fixed assets

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

   OPENING ADDITIONS DISPOSALS CLOSING ITEMS BALANCE BALANCE
   	2025	2024	2025	2024	2025	2024	2025	2024
   Computer applications	2,246	2,226	5	20	-	-	2,251	2,246
   TOTAL COST	2,246	2,226	5	20	-	-	2,251	2,246
   Cumulative amortization	(2,228)	(1,936)	(8)	(292)	-	-	(2,236)	(2,228)
   NET TOTAL	18	290	(3)	(272)	-	-	15	18
   Thousand euros

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

   The annual amortization rate is 33%.

   No intangible fixed assets have been acquired from Group companies in the last two fiscal years. There are no intangible fixed assets outside of Spanish territory.

   There are no commitments for the acquisition or disposal of intangible fixed assets in the last two fiscal years.

   At the close of the last two fiscal years, fully amortized assets still in use amounted to 2,227,000 euros in 2025 (1,891,000 euros in 2024).

7. ‌Leasing

   Operating leases

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

   The future minimum payments to be made until their maturity under non-cancelable operating leases are 3,476,000 euros as of December 31, 2025 (3,545,000 euros as of December 31, 2024).

   Leasing expenses registered in fiscal years 2025 and 2024 amount to 3,385,000 euros and 3,452,000 euros, respectively.

8. ‌Financial instruments

The following table shows the book value of the financial assets registered in the last two fiscal years, excluding balances with Public Administrations.

Financial assets