Mapfre, S.A. (MAP) Earnings Call Transcript & Summary

Good morning, ladies and gentlemen. This session is now open for the Annual General Meeting for MAPFRE or the general shareholders' meeting, I'd like to give the floor to the Secretary to go over the agenda. But first, I'd like to remind you that this meeting is also being broadcast through online through the -- our corporate website. The platform that allows shareholders to exercise their right to attend, be represented and vote in equal terms. Likewise, as recommended by the Code of Good Governance of the CNMV, this is being streamed live on the Internet open so that anyone can follow it live from anywhere around the world and of course, with simultaneous interpretation into 2 different languages, English and Portuguese. Should the technology fail we would temporarily stop the meeting and we would resume after the technology failure would be solved. Now the Secretary will read the agenda to us.

Good morning. Today's agenda for the general meeting is the following. First of all, annual financial statements, the performance and management. Examination and approval of the annual financial statements and the individual and consolidated management reports for 2022, approval of the integrated report for the 2022, approval of the non-financial in for 2022, included in the integrated report, approval of the proposed distribution of the result and dividends corresponding to fiscal year '22. Approval of the Board of Directors' management during fiscal year 2022. Number 2, appointment, reelection and ratification where appropriate of Board of Directors. Reelection of Mr. José Manuel Inchausti Perez as Executive Board Director, appointment of Mrs. Maria Elena Sanz Isla as Executive Board Director, reelection of Mr. Antonio Miguel-Romero de Olano as nominee Board Director. Reelection of Mr. Antonio Gómez Ciria as Independent Board Director, ratification and appointment of Ms. María Amparo Jiménez Urgal as Independent Board Director, appointment of Mr. Francesco Paolo Vanni D'Archirafi as Independent Board Director. Number 3, amendment of Article 17 of the bylaws regarding remuneration of Board Directors. 4, authorization to the Board of Directors to carry out capital increases with the power to exclude preemptive subscription rights. Number 5, authorization to the Board of Directors to issue debentures or similar fixed-income securities that may be converted into shares for a maximum amount of EUR 2 billion with the power to exclude preemptive subscription rights. 6, remuneration of Board Directors, approval of the remuneration policy for Board of Directors for the 2023-2025 period. Referendum on the annual report on Board of Directors' remuneration for fiscal year 2022. Number 7, authorization and delegation of powers for the interpretation, correction, supplementation, execution development of the resolutions adopted by the general meeting. And number 8, delegation of powers to execute and record as a public deed the resolutions passed at the Annual General Meeting.

In accordance with the provisions of Article 203 of the Recast Text of the Companies Act, the Board of Directors has resolved to request the presence of a notary to minute the Annual and General Meeting, [ Mr. Prado Ika ] represented our shareholders of 2 billion shares. So the -- it's 80.6% quorum of all the shareholding. So this is enough for this general meeting to be held in the first call. Therefore, the general shareholders meeting is now properly constituted. So I would like to give the floor to the notary public.

Good morning. As contemplated in Article 101 of the business registry regulations, considering the shareholders that are present and represented may manifest any comments or protests specifically related to the number of share capital represented here and the number of shareholders and those who are participating online can send an electronic message to object and they can do this at the website, the corporate website that has been provided for this purpose.

Anybody would like to comment on this? Now the Secretary will talk about all the documents that have made -- that have been provided to you and how we will be voting the proposals.

It has been available to our shareholders since the call of the general meeting, the full text of all the proposals to be agreed. Also made available to you in all the report of the Board of Directors of the appointment and remuneration committees, everything that is going to be proposed at this general meeting. Those shareholders present here who want to vote against or abstain any of the proposals or who want to participate should go to the table near the first row of this hall. On my right, where they must identify themselves with Spanish ID card with the Secretary so that this could be recorded in the minutes. If any shareholder wishes to have anything quoted literally in the minutes, he must deliver in writing the text to the Secretary or the Mr. Notary Public. If there are shareholders who are attending online and who want to vote against or abstain to any of the proposals. They may do so until the reading of said proposals is completed. Through the link that is called vote in the corporate website that has been provided for this purpose. The shareholders who are attending online who wish to participate, must do so. My [ done their ] interventions in writing through the Q&A link in said platform following the instructions that were included in the call to this meeting. If any shareholders wants the minutes to literally include their words, they must show this clearly in the heading of their message. Everything will be replied at this meeting or will be replied in writing within 7 days after this meeting.

Now Mr. Fernando Mata Verdejo, the Chief Financial Officer, will be talking to you. He will talk about the consolidated annual accounts for the year 2022 and the main achievements of the group in the financial and economic area. Fernando, whenever you're ready.

Ladies and gentlemen, shareholders, good morning. The annual accounts for MAPFRE of 2022 have shown satisfactory development, not just because of the soundness of the main indicators, but because they've been achieved within a very difficult context with the war in Europe, persistent inflation, sharp rises in interest rates and high volatility in the stock markets. Let's look at the main key points. MAPFRE has series of competitive advantages that allows us to manage in a diversity. I'd like to highlight diversification of our business based on 3 pillars: geographical business and balance sheet. And I would also like to highlight our globality. We are a group with 31 million customers around the world with leadership positions in most of the markets where we operate. In 2022, we grew significantly in insurance premiums in Latin America, especially in Brazil, just as in reinsurance and global risks. And furthermore, we have very resilient business in Spain and The United States. This has allowed a change in the trend in the recent years, having MAPFRE achieved the highest figure revenue in its history and the highest volume in premiums over the last 5 years. And all of this with a huge -- very strong technical rigor in the management of financial assets optimizing our international presence in those markets and business lines that contribute the highest value. We have a very sound solvency and high financial flexibility and very significant liquidity that guarantees the stability of our operations and allows us to take advantage of growth opportunities. We've proven that our balance sheet is very sound and versus thanks to the diversification of investments with a broad base of assets by different classes and always very consistent with our stability strategy. Here are a few highlights of the main figures for the year. MAPFRE figures are growing by 10.8% and if we discount the effect of the policies in Mexico and the exit of Bankia Vida in 2021 at constant rates, the recurrent growth would have been 8.7%. And revenue show significant and similar growth now above EUR 29.5 billion, the attributable profit is EUR 642 million, 16% less than the previous year, and the combined ratio of solvency is at 16%. This trend can be explained by the impact of inflation, be an increase of claims in the automotive and disaster claims, especially the drought of the Parana River, which the impact in the performance of this year is over EUR 210 million. The ROE is at 8.6% -- 8.2%, and the figures for September of 2022, it's a 217% the solvency ratio. The provisional date that we have for December anticipate a rate of slightly above 200%. The variation in this case includes the drop of the markets in the last weeks of the year as well as an increase in the risk of subscription of non-life premiums and higher withholding of reinsurance in 2023. This soundness of figures continues in the start of the year 2023. And is the positive development of the ratio for the month of January with an increase in premium of 24%. I'd like to highlight the growth of the Savings and Life brand in Spain. There is also a considerable improvement and the own equity of the most important subsidiaries of the group growing by over EUR 250 million due to the recovery in the valuation of financial transactions and on deals. The debt ratio dropped from 26% to 25.2% in just 1 month, and it's in the high range of the group's objective. We can also give you preliminary information about the earthquake occurring in Turkey and Syria in the month of February. The first estimates indicate that the claim is medium with an impact of above EUR 50 million. This disaster or claim should be considered a situation that can be assumed within the annual accounts of the MAPFRE Group. This is the breakdown of the revenue of the group. The premiums have gone up by more than 10%. They're now above EUR 24 billion with an improvement practically in all regions and business units in this case, helped by the currency effect. The life premiums are almost EUR 5 billion with a growth of 12% and 6%, respectively. Financial revenue dropped 8% primarily due to the depreciation and investments connected to unit-linked. And so no impact in the performance of the group or the final results of the group. Finally, the growth of other revenue is primarily due to a greater positive effect of exchange rates. As far as direct insurance with non-life and life risk, it's growing solidly. Only Life & Savings shows a decrease in premiums because of the performance of markets and also the exit of Bankia Vida that we mentioned previously. Here's the breakdown of our performance. Non-life EUR 823 million with a drop in '23 because there's been poor performance with automobile insurance, which has been somewhat offset by the branches of general insurance. The profits in Life is EUR 722 million considerable improvement in this case because there has been a drop in claims. The corporate results are, as you could see here, external partners. This is the performance of our partners in reinsurance and it drops in EUR 442 million. The cumulative effect of all this leads to net profit of EUR 642 million. On screen, you could see the adjusted ROE. And taking away the impact of hyperinflation and non-recurrent results due to corporate operations, specifically the exit of Bankia and the adjusted results were just dropped by 16%, whereas the ROE, both years would be at 8.4%. On the screen, you could see the development of the combined ratio over the last 3 years. Automobile shows a worsening due to the increase in claims and it reached in 2022, 106%. During the high inflation, which has led to higher costs meant that automobile premiums are not sufficient to cover the expected cost, these premiums were adjusted downward during the pandemic. And now what we're doing is adjust it to the new reality, the new situation, this combined ratio will improve in future with an increase in premiums that will be applied in every market where we operate. The ratio of general insurance, however, has a very positive development, highlighting the improvement of agriculture and death insurance in a more positive context for both branches, health and accident insurance has a ratio of 100% and as they did the previous year, in this case affected by higher cost in health care provision. I would also like to show you here the exceptional evolution of the combined ratio of Life risk in 2022, which shows a drop in claims associated to COVID, which means finally a return to the previous ratio we had prior to the pandemic. As you could see here, there's a distribution of premium by regions and business units. I'd like to highlight the 13% growth of insurance premium, especially in LatAm, where it's growing 15%, and it's becoming the region with the highest volume of the group, almost EUR 9 billion and very sound also the contribution the combination of reinsurance and global insurance with over EUR 7 billion premiums. As far as profits, there is a recurring contribution of Iberia with in a very difficult context, it reached 366 -- EUR 376 million, also a contribution of EUR 300 million from LatAm. The second pillar, profitability for our group. The third one is still the other region with considerable profits of EUR 133 million. I'd like to now talk about the main figures of the balance sheet. Total assets dropped by 6.6%, slightly below EUR 60 billion. Because business growth, as you've seen in a premium, doesn't compensate the drop in value of the portfolio fixed income due to the increase in interest rates. As far as our equity, it's at [ EUR 7.2 billion ], which is a drop of almost 14%. The main factor explaining this variation is the drop in the capital -- net capital gains that were not completed in the investment portfolio for sale, which is almost EUR 1.8 billion. This is a result of the already mentioned hike in interest rates. But on the positive side, the revaluation of foreign exchange, primarily the U.S. dollar and the Brazilian Real contributes over EUR 340 million to our capital base. So to summarize this chart that you see on screen is much less than what is being published by other relevant European players. And this is thanks to diversification and to our prudent approach regarding the investments we perform with our assets. Investments have also been affected by rates, a drop of 10%, and we see them above and beyond the EUR 41 billion mark. For the most part, this portfolio is one that has to do with fixed income and practically 80% of the sum total, we would also underscore our treasury, which is 6.2%. And we have over EUR 2.5 billion. To the right, we see MAPFRE in public debt. Practically EUR 20 billion of which, well, EUR 9.9 billion are invested in Spanish public debt. As to AUMs, funds, of course, have been impacted by the reduction in the value of the assets, but new subscriptions, which we have carried out would explain that the end of the year sees an increase which is in excess of 2%. We see on screen now our capital structure, which is very similar to what we had in place on previous locations. Our debt is 26%. That's the ratio. This is specific to the times. In January, it was 25.2%. We have not seen anything relevant for the group thanks to the amounts in our treasury stock. As to Solvency II, we are at 217%. This is information up to September, we expect a little bit over 200% by the end of December. 84% of our capitals are Tier 1. So that's top-notch quality. The ratio continues to be very solid, very stable. I would remind you that MAPFRE's objective is of 200% with a margin of more or less 25 points. As we've said in the past, and as we included in our report, in 2023, new international rules are applicable, which are applicable to financial investments and insurance contracts. These are in Spain, known as NIIF 9 and 17, IFRS 9 and 17. These new rules and standards are applicable to MAPFRE because it is an insurance group, which is listed. Nevertheless, our subsidiaries within the group will continue to present individual earnings under the accounting principles, which are applicable in each and every country. So this is a different way of seeing the flows and the assessments of assets and liabilities. There will be a greater degree of homogeneity, there will be less volatility as well as a new structure of our balance and of our P&L. And we will also see new indicators, which will add layers of information and transparency to our management mode. These new rules are not going to represent a major change in the basic indicators that we have in place in terms of investing of our different activities. And they're not going to affect risk appetite, treasury activities, dividend generation or solvency for the group in general. And now let's talk about our shareholder structure. We'll talk about the stock exchange, and we'll talk about dividends. 31 December '22, so MAPFRE with over 219,000 shareholders who owned 3 billion shares -- over 3 billion actually, of which MAPFRE owns 41.4 and this is the equivalent of 76.4% of the capital. As to financial indicators, our profits per share were of EUR 0.21. And the price book value ratio was 76.5%, which means that our cap at the end of the fiscal year is roughly the equivalent to 3/4 of its equity stock. So the price earnings ratio is a little bit beyond the 8.7x mark, which means that the market is satisfied to that degree with MAPFRE's performance. As you know, for the most part, it is Fundacion MAPFRE that owns 69.8% of our capital and 16.2% is in the hands of institutional shareholders for the most part, foreign owners whereas individuals represent 13.4% are, for the most part, Spanish investors. Let me now address the evolution of dividends. The results that we are sharing now allow us to continue to be true to ourselves. We are committed to dealing fairly with our shareholders. So if we look at 2022, we will again be sharing out EUR 0.145 per share. and the amount of dividends collected by shareholders of MAPFRE in the year 2022 has been EUR 448 million. So our profitability is in excess of 8.3%. Over the past 5 fiscal years, as you see on screen, MAPFRE has paid its shareholders dividends in excess of EUR 2 billion. Now let me wrap up by making a brief reference to the stock market. Shares performance. 2022 was not an easy year, but we wrapped up the year in a positive way. We surpassed IBEX 35 and the STOXX Insurance 600. The first 2 years of 2023, that's January and February have seen the value picking up over EUR 2 per share, highest price in the past 12 months and with active acquisition, especially after the publication of our earnings, the market shows that it trusts in our management and our strategy we've seen that it has been an upward trend. So ladies and gentlemen, thank you very much for your attention. And again, thank you so very much for believing in MAPFRE.

Thank you very much, Fernando. Thank you very much for that presentation. And I'm going to give the floor now to Ignacio Baeza Gomez who is Vice President with MAPFRE, who is also going to address activities carried out by the group in fiscal year '22.

Ladies and gentlemen, shareholders all, good morning. This is the third year in a row in which I begin my presentation by addressing the pandemic, together with the war in Ukraine and its effects have definitely affected the performance of the economy in recent years. And consequently, of course, they've affected MAPFRE's performance. But this time around, I'm happy to say that I have good news. First of all, claim levels that are COVID related are no longer significant for MAPFRE and barring any unforeseen upticks pandemic is now a thing of the past in terms of importance. Now obviously, the scars and repercussions in social and economic terms, well, they're still present. Now my second message regarding the pandemic is that it has had an impact on our company to the tune of practically EUR 900 million over the past 3 years. You can see that on screen. For an insurer, the best claim is the one that doesn't occur, especially when talking about life and health insurance. But it speaks for us that we have made a solvent and diligent contribution to reducing the most negative impacts of COVID, which has affected hundreds of thousands of families. It says a lot about us. As you from the evolution, unless there is a new global outbreak, we believe that we've heard the last of specific information on these claims. The impact among our policyholders is no longer significant because we are a reliable company. We meet our commitments regardless of the context. In terms of 2022, as explained by Fernando Mata, our CFO, we see that the figures achieved in such a complex environment do reflect the strength of our business model. This is a model that is highly diversified, and it is a model that adapts very flexibly to external circumstances while allowing us to maintain high returns year after year for our shareholders. Let's talk about our sustainability plan for 2022, '23 and '24. We are demanding now as we have been in the past vis-a-vis all our commitment I'm pleased to announce that during its first year of implementation, our degree of compliance with our sustainability plan was of 99.6%. This is an ambitious plan, which includes 23 objectives and 45 projects, which allows us to implement our ESG commitments. And it is increasingly integrated into our own company business. The documents you have access to contains additional information on achievements and actions in 2022 pertaining sustainability. But let's talk about the future. And let's see what our degree of ambition is going to be in accordance with this plan for 2023. But let me begin by saying that I must underscore that we fully accept the challenges and opportunities for a company Global as MAPFRE is to be an active agent for transformation in the world by pursuing the UN 2030 agenda. At MAPFRE, we work to truly maximize the fulfillment of the sustainable development goals of that agenda in the upcoming 7 years. And we know that we can contribute to the 17 objectives, but the group focuses increasingly on the 7 goals you see on screen i.e., those where we can truly be transformational as an industry. In terms of the environment, let me underscore that we are a carbon-neutral company on the Iberian Peninsula since 2021. Let me underscore that we work to achieve this carbon neutrality in all countries by 2030. With this objective in mind, last year, we made progress on projects such as the installation of PV panels, the acquisition of 100% guaranteed renewable energy, a reduced number of business trips, the implementation of a hybrid work model and the addition of ECO certified vehicles to our fleet. And we have also publicly committed to furthering advancing towards a carbon-free economy. We've said that we do not ensure coal, gas, oil companies, if they are not committed to an energy transition plan as of January 1, we have further bolstered our commitments. Our ambitions are raised with regards to environmental sustainability. We have that transition in mind. But remember that we are a people-centered company and everything we do. Thus, we are committed to ensuring a fair energy transition for generations that as yet have to adapt to change. We cannot allow sectors of our industries to collapse without an economic and social alternative, which truly will maintain employment and guarantee opportunities for people who are still linked to less sustainable activities. Let me conclude by adding that last year, we joined the Net Zero Insurance Alliance. This is a network that brings together the world's 30 most insurers in order to accelerate our sustainability commitments. What we want is to ensure that our insurance and reinsurance portfolio is net zero by 2050. Furthermore, at the end of '22, we signed on to a Net Zero Asset Owner Alliance undertaking, committing to our investment portfolios also being net zero by 2050. I'm also pleased to report that for the fourth year running, we are a part of the Sustainability Yearbook 2023. This year book is a prestigious annual publication by S&P Global that ranks the companies that are most committed to society and to the planet. Additionally, I would like to take this opportunity to announce that in 2022, MAPFRE was recognized by the consultancy from Merco as the fifth most responsible company in ESG terms in Spain, environmental, sustainability, good governance. This among companies in any sector and, of course, a leading insurer in this ranking. So our commitment to the environment, I think, is clear. Our progress in good governance and transparency is also clear. This is all detailed in the integrated report that you have available to yourselves. Our people. We are a company that is both committed and diverse. And that is why now I would like to focus on the heart of our sustainability strategy. our people. This is what an ESG terminology is what the S stands for. People are at the heart of everything we do, and they help us build a more sustainable, a more diverse society. We start, of course, with our people at MAPFRE. We have employees of 81 nationalities in 40 countries, I like to say this. I like to repeat this, 81 nationalities in 40 countries, working together every day with collaborative and digital tools that allow us to add layers to our cultural wealth, be more innovative and progress in an increasingly diverse society that has been promoting equal development for years. As to gender quality, 42% of MAPFRE's leadership job positions are held by women. And we continue to progress towards the total elimination of the pay gap that stems from the past, which this year is 1.86%. and which I hope will be virtually non-existent by the end of 2024. As to inclusion, we have also fulfilled our commitments. In MAPFRE, 3.5% of our workforce is with persons with a disability. 98% of our employees are on permanent contracts because we believe in our people. We believe there are excellent professionals who embody the motto of our purpose, which is care about what matters to you. Thanks to our progress in development programs last year, more than 86% of promotions involved in-house talent. And we have launched leadership and professional growth program for 5,000 persons of the company's more than 31,000 employees. Therefore, we can say that it is a company of opportunities for all those who will take advantage of them which is why we say that at MAPFRE, your time is meaningful. And we are a company that is both socially responsible and committed. Despite the current limitations in force in many countries because of the pandemic, in 2022, more than 4,500 employees worldwide proved their social commitment in their actions as volunteers. The diversity we promote increases our company's value, and it is global in scope. This is a culture that we put to good use in the almost 40 countries around the world where we have a presence, including some, these matters are not as important. And furthermore, since last year, we have seen how -- our people management positively impacts the SDGs of the UN 2030 agenda. We implement a methodology that has been developed together with other global companies. MAPFRE contributes to all the sustainable development goals, but perhaps more especially to the 5 that you see on screen. Our level of excellence in gender equality is noteworthy, that's 97% compliance. And we also are well poised to carry out positive action on the goal of promoting health and well-being, in addition to that quality education, which, of course, in a corporate setting is the equivalent to training. In both areas, we are at nearly 70%, 7-0-percent. And we are also developing 2 additional lines of work in the social area, the promotional financial skilling and our insurance accessibility programs, which we have mainly in Latin American countries. I said before that our sustainability model is increasingly integrated into our business. This both affecting issuing and underwriting as well as direct management or through providers. But what is also important is that we have an important role to play as large investors. As of 2019, the University of CNM has been measuring the impact of our investment portfolio on the UN SDGs. I have to add that we have improved year after year and now 99% of MAPFRE's equity investments and 83% of our bond investments generate positive externalities in some of these SDGs. It is thanks to responsible investment. It is thanks to underwriting that insurance can and must contribute to the fair energy transition that I referred to earlier. Innovation. Now allow me to talk about another one of our hallmarks. The 2023 fiscal year was a year of consolidation for our open innovation model. MAPFRE Open Innovation. It is important to note that it is over 2.5 million customers now who have already benefited from the solutions promoted by our innovation teams, the world over. In 2023, we will continue to work at the crossroads of operational efficiency and improving the customer experience as done in 2022. By way of an example, let me underscore the -- our artificial intelligence-based automatic appraisal and claims automation solutions which are present in Spain, Brazil, Colombia and which are being expanded to other countries where we operate. And we continue to explore tools and alliances that will enable us to better understand emerging risks such as those associated to climate change or cybersecurity itself. This allows us to improve our existing products and coverage and it also allows us to design a new generation of products that are focused, especially on enterprises. And we are not alone. Many of these achievements have been possible, thanks to the collaboration and investments of the world's leading startups. We work with them because we see the greatest value contribution from MAPFRE and our customers. And actually, we studied over 100 start-ups, and we work with 30, 3-0 of them. And at the same time, CESVIMAP, which is our mobility lab, continue to work in 2022, focusing on driving assistance systems, personal mobility vehicles and autonomous vehicles. We've generated knowledge for MAPFRE and for the entire insurance industry. Furthermore, CESVIMAP launched a novel project, which is called Second Life. Second Life focuses on the reuse of batteries from damaged electric vehicles. This has materialized in 2 initiatives. The first assistance vehicle for recharging EVs powered by these reuse batteries and affordable [ tech ] energy storage system that supplies our recycling facilities in Avila which is where the CESVIMAP lives. Thus, we've reduced their carbon footprint, and we've made them a benchmark in the circular economy. Finally, now, the Alma Mundi Insurtech Fund, in which MAPFRE participates. It presented a new investment package with a target of EUR 250 million, this is in 2022, in addition to the EUR 100 million already invested in the previous fund. Thus, Alma Mundi is an insurtech fund that is a benchmark in Europe and doubtless one of the largest specialized funds the world over. Now customers. In relation to customers, we have continued to deploy all the innovations I just mentioned and technology in relation to data management. This allows us to make increasingly personalized offers to each one of our more than 31 million customers worldwide. In 2023, we will continue to consolidate the strategy by focusing on increasing retention levels. Customers want immediate responses. They want a response for MAPFRE, which is something more than just providing insurance. So being linked to customers is a must. And this means we must adapt to new business models and leveraging new techniques and all the knowledge provided today in order to improve their comprehensive experience with the company. And Fundacion MAPFRE now. Let me conclude by making a reference to MAPFRE's social arm, if you will, our foundation. Our foundation has been at the service of society for more than 45 years in about 33 [ old ] countries worldwide. Fundacion MAPFRE is one of the key institutions of the third most important sector in Spain. And let me assure you that we will be even more so. I'm very pleased to announce that we are one of the very few private institutions in Spain selected to manage European resources as an intermediate body for the European social fund. The process is currently underway. We have been predesignated or shortlisted, and we are already working on an ambitious call for proposals, focusing on the social and occupational integration, a vulnerable persons and the improvement of long-term care in rural Spain. As in everything we do, we aim to offer opportunities to people, especially those nearly 8 million citizens living and municipalities with fewer than 30,000 residents and [indiscernible] abandoned villages, focusing especially on those more at risk, the elderly and persons with disabilities. We will be the only new intermediate body for this period, focusing on, as I said before, rural care. At Fundacion MAPFRE, this recognition will allow us to increase our capacity for action with the enormous responsibility of managing EUR 20 million coming from the European social fund plus over the upcoming 5 years. It is important to remember that these are co-finance programs. So Fundacion MAPFRE contributes an additional EUR 10 million, additional to the EUR 20 million provided by the European Social Fund. This more intense contribution to rural Spain will not halt our ambitions in our usual programs related to financial education insurance, road safety, accident prevention and health care and art as a cultural offering that enriches society. And I would also like to inform you that after almost 40 years contributing to development in the Canary Islands, Fundacion MAPFRE one ARTEME has become Fundacion MAPFRE Canarias. It's a new surname, but the vocation for service to this community remains unchanged. In 2022, there were nearly 400,000 beneficiaries of the more than 100 activities carried out in the islands with key programs such as employment training. This is where we provide training and mentor young residents to improve their employability. As of 2018, 25% of the nearly 2,000 residents participated in the project have actually obtained the job. And I and from the Canary Islands, I'm certainly very proud. Going back to the Fundacion MAPFRE. In the last 10 years, specifically, we have invested over EUR 610 million in people development. I like repeating this, over EUR 610 million, always being very close to the most vulnerable and offering second opportunities to those who need it the most, like the essential social help work we have conducted during the pandemic in nearly 30 countries. We are and we'll always be building a more humane future. As you have probably seen in recent weeks on a television commercial, and we'd like to show it to you now, if we may. [Presentation]

This is our vocation, and we feel very fortunate to be able to pursue it and reap these emotional rewards we referred to in the commercial, which comes from helping others. All of us who are one way or another, part of MAPFRE believe that we are in a company that's different. Obviously, we're giving our customers the best product and the best service. But we believe we're giving them something more. Because we are giving back to society, part of what we are receiving from it and we like to share this both to our current customers and to the potential ones that we aim to attract. Let me say it again, we believe we are a different company, a special company. Ladies and gentlemen, shareholders, I believe you can feel very satisfied and proud of the level of progress made in all our initiatives. MAPFRE is a company that is sound, trustworthy and committed that is always moving forward with determination regardless of the environment we're in, always focusing on people, which are the most valuable thing for society, but maintaining an open mind to identify and integrate into the business, all the innovations and trends that increase our company's value, your company. Thank you very much for your attention. And once again, thank you for the trust you place in us. Ladies and gentlemen shareholders, thank you very much.

Thank you very much, Ignacio. The truth is we appreciate your applause after the video because no matter how many times we watched it, it still moves us. The corporate website provides the text of the proposals for agreements that are being presented at this general meeting. However, previously, I would like to first refer to some of these proposals in particular. The appointment chapter, we propose reelecting Mr. José Inchausti Perez and as Executive Board Director and Mr. Antonio Miguel-Romero de Olano as nominee Board. And the reelection of Maria Elena Sanz Isla for a period of 4 years. These proposals have favorable opinion of the committee of remuneration and appointments. In addition, the meeting is proposing Mr. [ Antonio Gomez Ciria ] for an additional period of 4 years. Ratification of the appointment as independent appointment of -- and the reelection for a period of 4 years, as well as the appointment of Mr. Francesco Paolo Vanni D'Archirafi as an independent Board member for a period of 4 years. This has been presented to the Board of Directors by the Appointment and Remuneration Committee. These proposals will be considered without prejudice to that contemplated in our bylaws and code of good governance. We're also presenting for approval by the AGM is the status of non-financial reports. We would also like to propose the payout of a complementary dividend for 8.3% and this would be [ EUR 2.6 billion ] which would be EUR 0.145 per share of the total amount paid would be EUR 446 million for 2022, to be charged in 2022. The payout would be 69.5% of 2022 under the dividend payout policy, the Board of Directors has decided that it would be good to present this proposal of payout of dividends above 67% of attributable profit based on the extraordinary increase in the claims and the automobile [ our ] branch during the year in a scenario of great stability and soundness and margins of the group. We would also like to propose changing Article 17 of the bylaws that is regulating the Board members to change the basic remuneration of the Board of Directors establishing that they could be including life insurance in the event of death, health insurance and other products marketed by the MAPFRE Group companies, and I other in line with those established in general for company personnel. We also propose delegating by Board of Directors the possibility of issuing fixed income assets that can be convertible into shares and also to exclude the preferred underwriting to give the company more flexibility and agility and facilitate the access if necessary to stock markets. Also, we are proposing according to Article 97 of the Corporate Act the remuneration policy for Board members up to 2025, which includes the regulation established regarding remuneration according to this corporate law and also regarding to solvency and recommendations regarding the code of good governance for listed companies -- publicly listed companies. According to the third recommendation under the code of good governance for publicly listed companies, I'm going to express the reasons why the entity hasn't fully complied in 2022 with some of the recommendations contained therein. First of all, with regard to the responsibilities of the lead Board of Director. It doesn't have coordinate the plan of succession of the Chairman because this is something that must be done by the Appointment and Remuneration committee. And they do not maintain contact with the shareholders because Revenue Committee must supervise the right mechanisms to establish relations with shareholders. So they approved the policy for communications with shareholders, institutional investors and other stakeholders and other non-financial and corporate stakeholders. Number 2, in line with the recommendation of having separate Appointment and Remuneration committees, MAPFRE considers it's advisable to maintain the responsibilities under committee regarding appointment and remuneration because these are matters that are strictly very closely related. Number 3, as far as the recommendation to be -- to delegate bodies, the responsibilities of establishing and supervising the right mechanisms for communications with shareholders, MAPFRE has attributed these responsibilities to the Board of Directors. Number 4, as far as the recommendation to maintain with the Board Directors for a minimum of 3-year shareholder [indiscernible] or financial instruments coming from compensation systems, MAPFRE considers it's appropriate and sufficient to have a maintenance of the shares for a maximum period of 2 years since the delivery of them is -- can be deferred for 60% during a period of 3 years by third parties. Finally, regarding the recommendation regarding payments during termination of contracts or leaving the position as Board Directors, it has the waiving of the suspension of the relationship prior to the appointment of such, therefore, according to the code of good governance of publicly listed companies if the dismissal is appropriate, then it will be duly indemnified according to the Statute of Labourers in relation to an improper dismissal. So now we have concluded the period of request for participation of those attending this general meeting. And the information I have the 2 shareholders who wish to participate. One is in the room and another person would like to speak or has sent their request electronically to the platform that we have provided for this purpose. [ Jose Antonio Delvario Colminareco ] the shareholder would like to participate and read his intervention. It's what I've been told. So invite him to come up to the stage to participate.

Good morning. Mr. Chairman, ladies and gentlemen, directors, I'm very sorry to communicate the decision of minority shareholders of not approving your management of MAPFRE for 2022. If we had to grade you, you would have an F and you would have to do it again or repeat the year. Some of you should quit if you have any pride. Although you have the backing of Fundacion MAPFRE representing 63.9% of the share capital. I would recommend that you take strict measures to straighten the course of MAPFRE in every respect. Mr. Chairman, MAPFRE is presenting results for the year '22 with profits of EUR 642 million, which compared to the year '21 is 16% lower and it's one of the few companies in the IBEX 35 that have not improved their performance. Mr. Chairman, we're at the end, lagging behind when in the year '21 to '22 are the best in the history of results of the companies in IBEX 35. Mr. President -- Mr. Chairman, MAPFRE is not generating value for their shareholders. For many general meetings now, I've been insisting on this point, shareholders, minority or institutional shareholders or whoever, who bought our shares in 2015 with a price of EUR 3, we've seen how -- through -- over the past 7 years, our share price has only been able to be listed at the most -- around EUR 2 -- at a price of EUR 2 at the most, which if you do your calculations, our investment today has lost 24% of its value. I would like to ask the following question, Mr. Chairman, are you going to buy back shares the subsequent amortization in the year 2023 to try to help create value in the price of our shares because organically, you are proving that it's a practically impossible task. The dividend of these EUR 3 per share is around 34.5%. In previous general meetings, you [ always ] mentioned how very generous you are by paying shareholders, the EUR 0.45 per share because, of course, the share price keeps dropping, you say, well, it's [ 8, 9, 10, 12 ], No. if the share price is EUR 3, you're actually paying 4%. You're not paying any more. And plus you have frozened dividends for the last 7 years, no less. I would like to ask you the following question. Can you analyze, even if it's just analyzed do something about it to increase dividend to around EUR 0.16, EUR 0.18, so that shareholders can see that you're actually wanting to do something to mitigate our losses? Mr. Chairman, MAPFRE had extraordinary profits because of the -- and the alliance of bank -- with Bankia. Why don't you pay out dividend -- extraordinary dividend for that divestment? The Board of Directors as a whole year after year, according to your figures, is increasing their salary. I'm not saying it's too much or too little, but in this year 2023, we have now a full Board, 15 members on the Board. The maximum number permitted. I'd like to ask you when are you going to finally link your salaries to the development of annual performance and the price of the shares of MAPFRE? Finally, Mr. Chairman, and this is not very relevant, but I must say that some years ago, you stopped offering as a reception cocktail after the general meeting. This year, 2023, you've decided that you will stop giving gifts at the end of this general meeting to all shareholders, is there a reason to justify this decision. Thank you very much.

Mr. Del Barrio, thank you very much for your intervention, and I will now answer as fully and comprehensively as possible. I would like to clarify something you mentioned when you said that you decide -- the decision of minority shareholders. I -- it is my understanding that your communication represents only you individually owner of 4,000 shares. I would also like to clarify the following, which is probably just mistake, but has already been communicated in the presentation by Mr. Mata, the Chief Financial Officer. The support of -- the exact figure of support from the Fundacion MAPFRE. Mr. Del Barrio is challenging and criticizing MAPFRE's results for the year 2022, which indeed are slightly lower than that of the year 2021. And indeed, both in the year '20 and year '21, there were years where it was very difficult to compare these 2 years because we were directly all involved unfortunately, millions of people died around the world because of a terrible pandemic. As you all know, the insurance industry is -- aims primarily to protect not only assets, but the Life and Health of people. And in these very difficult years, indeed, we've fulfilled in the best way possible our role as well as all our social actions, which we won't go into details now because there are so many actions that we carry out all over the world to try to help people with these terrible times. Our company acted with the highest responsibility as a global insurance company in 5 continents and with very strong presence in many countries where, unfortunately, the pandemic caused the death of many -- hundreds of thousands and millions of people who had insurance with us. And unfortunately, our results have been impacted by this and other we're not so directly related to these kinds of claims. They offset these negative results. In any case now circumstances have changed, the social economic environment has changed. And so the good professional efficient management of MAPFRE's teams are making sure that results are now more than satisfactory considering the context if you analyze the financial results, not of just national companies operating in Spain, some have competitive advantages and some have other disadvantages. But if you look at international companies, you will see that there are huge variations of these results due to circumstances that I will have the opportunity of explaining. But in any case, there are in the integrated annual report we have offered you, say that our results are lagging behind. But in our opinion, they're as far ahead as they could possibly be. And the comparison you've made of the IBEX 35 companies, other companies in IBEX 35, there are many different kinds of companies. There are only 3 insurance companies in that index, but I'll give you a figure just to clarify. And The CEO mentioned this previously, but MAPFRE this year in the IBEX and you want a comparison grew 0.2% in its share price. It's very little, but it's positive. The IBEX as a whole dropped 5.6% last year and the Euro STOXX Insurance 600, which is the comparable of European insurance companies dropped by 1%. So there is a very significant positive impact for MAPFRE. Therefore, shareholders have -- don't have such a negative assessment as yours of our management. Mr. Del Barrio, you insist the MAPFRE doesn't generate value for shareholders because the price when you bought at, yes, in 2015, the price was -- for the year was around EUR 3 and they started in 2016, it dropped to EUR 2. So that's a situation that you said with an average retribution of 4%, 5%. You don't consider that enough, Mr. Del Barrio during all those years, the interest rates in Spain and Europe have been around 0 or even negative. So getting a continuous profitability for all those years, about 4% and 5%, I do think it's wonderful profit because every single year that payout was cash continuous, and we've never failed, not once have we failed our shareholders. And some of us, and I include myself, have been able to buy shares at a time when the value was most appropriate because we would have a better outlook, but we're currently living in very unstable financial economic times, and that means that our dividends are very differential. And at the leading edge of most of our companies taking into account, as Fernando Mata said previously that the average price of shares that return won't just be 4%, 5%, but the shareholders have been buying recently have gone above 8% of payout, but I can guarantee that, that share price will continue growing as it has been doing in recent months, and you'll be able to offset that lack of payouts that you are criticizing. The other direct question that you've asked, are we going to be buying back shares? Mr. Del Barrio, if we bought back shares right now, shareholders would lose money. It's better to wait for the value to recover. And then the Board of Directors will be able to consider whether this is the right decision or not. But we're fully confident that the value will be sustained over the next few months. Do you suggest -- there's a suggestion by the Board of Directors that they've also done in recent years, they said that the Board should at least consider the possibility of increasing dividends. There's a reference to EUR 0.18. I can assure you that the Board of Directors twice a year considers the payout of dividends and they do it to the account of the payment of extraordinary payout of dividends in the best possible conditions that we could offer. So that on the one hand, you could be paid appropriately while maintaining the levels of solvency and liquidity required by the group so that we can continue operating appropriately. You also asked whether there are going to be any extraordinary dividends. The proposals formulated by the Board of Directors are what we are presenting in the agenda, and then you reflect on the composition of the Board of Directors and their remuneration. You have stated rather incorrectly that there are 15 members on the Board member, and that's the maximum. There is no maximum. There is a recommendation by the CNMV that says that 15 members is the ideal number. MAPFRE is a very complex, very large company present in many different markets with many different businesses, and we feel that we should always have that recommended number by the CNMV of 15 members and which we had lost a few years ago. We've just recovered the number we always had so that we could the recommendations of the CNMV, saying that first of all, we should comply with gender equality criteria; and secondly, with diversity and professional experience and also geographical origins considering our presence of the company worldwide and with different scales, of course. And that's why the Appointment and Remuneration Committee continuously is -- proposing candidates to the Board of Directors so that we fulfill all recommendations of the CNMV. And finally, regarding remuneration, remuneration of Board of Directors are fixed they haven't been increased in recent years and the small variations are caused due to the entry or exit of various directors and also because of the salaries of the executive directors. And about the cocktail reception, I have nothing to say, but we have made the decision that no gifts will be presented this year because I think there are a few hundred of shareholders here that we really appreciate their attendance, but we have thousands all around the world who are not here in person, so it would be discriminatory, it would be unfair to give gifts only to the ones who are here. And since we can't send them around the world, we've decided to do away with those gift, which was not really very significant in our opinion anyway. Thank you for that. Our second address via remote shareholder Adrian Jimenez Martinez, 3,600-plus shares, to know about management in general. There's 2 initial questions, which literally refer -- oh, and by the way, he requests, of course, that the questions and answers be included in the minutes. So the question is, what plans are underway to ensure that there is independence between the foundation and management. This is what the CNMV and the European Union recommend. I'm concerned about the potential conflict of interest for the President in general, talking about companies management, the foundations management. And as a follow-up -- as a follow-up, no, sorry. No, no, not a follow-up. The third question. Sorry, I'm confused. Oh, yes. Yes, yes. No, I'm sorry. There seems to be a slight confusion with the questions. This is the interpreter saying there seems to be a slight confusion. So is there any desire to reduce that stake in order to ensure that there is buyback of shares in order to ensure that the price of our shares is placed back where it belongs.

Thank you. I'm providing a response to the questions posed by Mr. Jimenez, let me just express that actually the unbundling of the group and the Fundacion is a concern -- it's a source of concern, which dates back to a long time ago. This is something that the entire team focuses on to such a degree that ever since we published our first code of good governance back in 2020, if my memory doesn't fail me, it expressly sets forth the principle of separation of activities. At this point in time, we not only abide by this principle, which is included in our basic documents, in other words, the institutional principles and organizational elements of the group. But furthermore, it is the foremost institutional principle. And furthermore, I would like to remind you that we do not only address a separation in this principle. We actually say [Foreign Language], a rigorous, a strict separation. There are 2 scopes, which are expressly contemplated. One is the economic and the other -- secondly, is supervision and management. Further to that, just to allay the concerns of Mr. Jimenez as a shareholder. Let me just add here that because we want to abide by this first institutional principle, the Secretary General of the group and its legal division, which I am very proud to head includes among its functions and first and foremost, to ensure that there is strict compliance with all of those principles, which is, first and foremost, as I say, a rigorous division of activities. So as a consequence, all I can do is firmly state that Fundacion MAPFRE and Grupo MAPFRE are respecting those boundaries ensuring that the separation is maintained and abides by those mechanisms, which I have set forth regarding ongoing supervision in order to ensure that we actually work along those lines. And finally, with regards to the same issue, perhaps by way of a clarification because the bad MAPFRE Group is proud as a group because we're proud of those activities that are carried out by its majority shareholder, as I say, we're proud. So for instance, an event such as today's our Annual General Meeting, we are delighted to provide updates regarding the activities carried out by our foundation. So we're proud, but please let there be no confusion. This does not mean that there is nothing but the highest degree of respect for that division.

Thank you very much. There are 2 more questions. First, I'll take the fourth and then we'll go for the third. Mr. Jimenez further asks, how are you going to generate value for our shareholders if you ask for permission, this is #13 to increase the share capital, 1 or more times, et cetera, et cetera, we do not think that this is justified.

Let me answer by saying about this issue. I would call your attention to the fact that in compliance with our legal mandate, the documents, which we are referring to today is included in a report which justifies the different proposals that the Board contemplates and one perhaps more specifically addresses the issue of this specific proposal to authorize the Board of capital to increase the share capital. We could say logically enough that there is no specific concrete justification, but logically enough, what we seek is an authorization in the exceptional case that it were to be necessary to think about an emergency increase in share capital. So there is no generic justification, of course, but we cannot think about at this point in time having a specific authorization. And furthermore, Mr. Jimenez, let me just repeat here that this is very standard. This is what large listed companies usually do. Well, there are slight differences. The percentages of the share capital, but it is definitely something which is absolutely standard in the case of large listed companies.

And the third question, which I have left until the end has actually been partially answered, why are there going to be more members of the Board instead of substituting one if the current members of the Board cannot have a positive effect on the share price? I think that's been answered. And secondly, what about profitability? Those reelected members of the Board, what justification would there be? Let me answer by saying we're not going to go into the specifics of the different merits of the different members of the Board. What they have done what they have complied with -- some of them have been on the board for a longer period of time, there's for a shorter period of time. Obviously, the Appointments and Remunerations Committee meets and studies and assesses and analyzes to assess the performance of each one of those members of the Board and the proposal is studied here today. I'm sure that you can imagine that all of the proposals have been very carefully studied. And both the committee as well as the Board are sure that all of these persons more than fully make good on the necessary merits to continue to be members of this Board. Thank you very much for those questions. There do not seem to be further questions. Thank you. I understand there are no further questions. No shareholders present or shareholders via remote. So now the proposals, which will be read by the Secretary.

So the proposal has been made available to all of the shareholders and delivered to the notary. So because it is very long, let me just provide a brief summary. The approval of the annual financial statements and the individual and consolidated management reports, approval of the integrated report for 2022, approval of nonfinancial information included in the integrated report for '22, approval of proposed distribution of the result and dividends again, fiscal year '22. And specifically, dividends, [ EUR 445,535, 224 ], remaining [ EUR 2,851,750,722.02 ], and the total amount distributed is [ EUR 732,285,946.61.] As to the Board approval of activities, reelection of Mr. Jose Manuel Inchausti Perez, Antonio Miguel-Romero de Olano as the Nominee Board. And Antonio Gómez Ciria and María Amparo Jiménez Urgal as independent Board of Directors. Appointment of Maria Elena Sanz Isla as an Executive Board Director, Francesco Paolo Vanni D'Archirafi as independents. Amendment of Article 17 of the bylaws regarding the remuneration nonmonetary of Board of Directors as such. Authorization to the Board of Directors to carry out capital increases once or more in order to exclude preemptive subscription rights for the 5 years after the date of signature of this agreement and to the fullest extent possible. Authorization to the Board of Directors to issue, if necessary, debentures or similar fixed income securities that may be converted into shares with the exclusion of preferential subscription. Remuneration of policy for Board of Directors, 2023, 2025. Referendum on the Annual Report on Board of Directors' Remuneration for fiscal year again, 2022. Authorization and delegation of powers for the interpretation, correction, supplementation, execution and development of resolutions adopted by this General Meeting. And delegations of powers to execute and record as a public deed resolutions agreed upon. We, therefore, conclude with the time necessary for votes, all of these proposals have been approved. The result will be published on our corporate website as mandated by current legislation.

So we hereby approve those agreements reached by the General Shareholders' Meeting. Thank you very much. On behalf of all of ourselves. Thank you very much. Well, ladies and gentlemen, shareholders, all, thank you so very much, again for the trust you have placed in us. We're closing the Annual General Meeting. And I would like to begin by once again expressing our solidarity with Turkey and Syria after the recent earthquakes they have suffered Fernando Mata explained that the impact for MAPFRE in Turkey is negligible, but we cannot turn our backs on the pain that this catastrophe has resulted in. And of course, we have to insist, we reiterate our support for the people of Ukraine who, for more than a year now, have been suffering an unfair, unimaginable war in Europe, prosperous, peaceful Europe of the 21st century that we have been building. Now that said, in this speech, let me briefly take stock of 2022 for MAPFRE. And let me summarize our achievements and main lines of action in the different regions and business units we have the world over. And then I will address the main challenges that we will be facing this year and next year with the review of our strategic plan, and an update of what will continue to be our beacons for the upcoming years. 2022 was not an easy year, but neither was '21, neither was 2020. And this is not an excuse. [indiscernible], it is a recognition of our strength because we have again managed to record a satisfactory year in one of the most challenging contacts we have ever had to face. If you remember, 3 years ago, we've addressed you on the eve of a global pandemic. And last year, we presented our new plan just as the first war on European soil in more than 20 years began award that unfortunately continues to rage today with a massive impact, hundreds of thousands of lives lost, the displacement of millions. The war has been important, but it has not been the only factor to contribute to what has truly been the conditioning element. The resurgence after so many years of these inflation rates that are spiraling out of control. It seems that developed world had used to stable prices and very low interest rates, which were an aberration by the way. But suddenly, we have had to hark on those lessons learned many years ago, how to manage the business in a double-digit price growth environment and with money costing all the while much more. What began to be a significant imbalance between supply and demand apparently temporary after the effects of the pandemic was worsened by the uptick in world energy prices and has been consolidated after the Russian invasion of Ukraine. Now faced with the situation, central banks have been forced to sharply, suddenly increase interest rates. The first to do so, we must acknowledge were some countries in Latin America, Brazil, Mexico. This is a maneuver that has allowed them for now at least, to manage this part of the cycle with a relative peace of mind. But in developed countries, it is not clear yet whether the U.S. Fed or the European Central Bank will be able to achieve that desired soft landing. But doubtless, growing rates will be felt in the coming months in the domestic economies and in companies that are leveraged. So in short, inflation, growth below the potential, the after effects of the pandemic, market volatility -- the context is just chockfull of circumstances that did not help us at all in 2022. But as I said before, we have successfully closed a very so a very solid, a satisfactory year. So solid indeed that we made the highest revenue ever nearly, nearly EUR 30 billion. And this is because MAPFRE benefits from a series of competitive advantages that allow us to reasonably well deal with these complex situations. Let me underscore our diversification in terms of geography, in terms of our balance sheet. And allow me now to very quickly take a look at business prospects in the different global regions and business units where we operate. Let me begin with Iberia. In 2022, in Spain, we have satisfactorily reorganized internal structures so as to be more nimble, more competitive. We underscore the implementation of a new operational model in the fields of subscriptions and the new commercial model. In Non-Life, our most dynamic lines were health, enterprise and multi-risk. Automobile, of course, as we know, has been tremendously affected by the increase of costs, which result from that growing inflation. And also P&C has been impacted. In Life, the interest rates allowed us to again offer life and savings products that are very attractive, which customers love. But this, in turn, results in a major reduction as we have seen when we think about the value of our investments. Our sales network is our company's greatest asset. It allows us to continue to grow sustainably and we've implemented specific measures to improve our portfolio retention. We're doing well. And in addition, we have grown a broker plan. It shows good results and we work to strengthen our value propositions in car dealerships. But in 2023, the challenge will continue to grow more than the market does more profitably, and we will remain focused on developing our customer strategy. We'll optimize our management models. We will bolster and broaden our distribution channels relying all the while on our banking partners, Banco Santander and Bankinter. While at the same time, furthering our transformation forward. We need to consolidate our operating and sales models. We'll be working on designing a new productivity model for central services in order to maximize nimbleness and efficiency. In Auto, we will continue to work in order to reduce our loss ratio. In terms of Life, we are looking forward to our savings and annuities products. Now let's talk about Latin America. For the first time in MAPFRE's history, we are absolute leaders. The fiscal year was the best ever in that part of the world in terms of revenues, in terms of earnings. And Latin America is our major contributor by premium volume and the second in terms of earnings. Back in -- starting now, we will be launching a new regional organization. Why? To streamline the structure and increase efficiency and technical control. Brazil is important and is still there. And Mexico now is a strategic country. And we've created a new regional area, LATAM South Central, which encompasses the 15 remaining MAPFRE countries and LATAM. Brazil was a complicated year at the beginning of '22, a sharp increase in loss ratio in agro because of the historic drought that devastated south of the country in Paraguay. And we were, of course, also affected by the increase in automobile claims costs and the latest impact of COVID, we talked about that when talking about Life. Nevertheless, the measures adopted have made it possible to end the year with a wonderful result, 45% more premiums and results and, of course, significant technological progress. Let me highlight the tremendous effort made by our partner, Banco do Brasil, with whom we have developed a very active sales plan, which has been very, very good in terms of the premiums and results achieved. The positive trend in the second half of 2022 makes us be optimistic when we think about 2023, premium growth, earnings and the loss ratio in automobile line continues to be the main challenge we face in Brazil, but we've taken the necessary measures in terms of prices, risk selection, cost containment, and the selection of more profitable brokers. At the end of the day, the effects will surely be positive. And we're convinced that Banco do Brasil will continue to be our engine in terms of production. And our efforts to boost efficiency and cut internal costs will also continue to be essential objectives in order to improve our competitiveness. Let's go to Mexico. During 2022, we met our growth targets in terms of earnings. And this is thanks [Audio Gap] Thank you for that. We need to speak as the slides appear on screen. I would think Mexico then. In Mexico, 2022 was a great year in terms of premiums and attributable earnings. And this is thanks to our rigor and the excellent, excellent commercial activities carried out. I have to underscore our digital transformation. For 2023, our objective is to grow Mexico's base in the group's result, and this will be by increasing retained premiums and more profitable lines, improving automation, thanks to Newtron, our new technology platform and also by means of reducing our acquisition expenses. In Central America and the Dominican Republic, we've done very well in 2022. We have premiums, and we have agreements, and we've advanced in technological and operational terms, thanks to the Americas Central Plan. Main challenges are major. We want to stabilize Automobile in Panama and the Dominican Republic and grow our implementation in multi-country technology achieving product approval, automation processes because we need to improve efficiency, quality and service. And in the Dominican Republic, we have a wonderful partner, one of the country's leading financial groups, the Centro Financiero BHD Leon. In LATAM South, 2022 was a landmark year because of the written premiums and results achieved in this part of the world, despite the sharp increase in automobile claims. Our excellent financial management has been essential in helping us achieve these results, especially Peru, Colombia. Between the 2, they contributed over 88% of regional earnings, but Chile and Uruguay have done nicely as well. In 2023, we aim to lower the Auto combined ratio, cut expenses and strengthen technical and financial controls in each of the companies. And also, we've launched [indiscernible] MAPFRE in Latin America, which brings together the best life brokers in the continent and which is going to be extremely prestigious. It aims to become the largest network of life insurance vendors across the continent. Let's go to North America now. The results have been poor. Why? Debt is because of the inflationary environment, which drove extraordinarily high Auto claims. Most North American insurance carriers are also reporting very bad results, the worst in recent history. MAPFRE U.S.A., we've mitigated these impacts through rate increases, capital gains and very, very much focusing on cost control. We forecast different results because of the reinsurance activity. Interest rate hikes will contribute to increasing the financial income to offset those losses, but not to a sufficient agree. In 2023, we're going to continue to increase rates in the U.S.A. We're going to, again, underscore the importance of cost control, and we will have to redefine the reinsurance structure. We are launching with a new company in the States, the Auto Club MAPFRE Insurance Company, this with our partner, AAA. Again, I repeat the name Auto Club MAPFRE Insurance Company, which is basically going to be active in the state of Washington. Puerto Rico. If we wouldn't have Hurricane Fiona, we would have achieved the best results ever. And they've been good despite Fiona. We will maintain our current selection policy for risks with catastrophic exposure considering the increases in reinsurance costs. And now Eurasia, now renamed EMEA, where we've successfully completed structural transformation process with the sale of our insurance operations in Asia and the conclusion of the restructuring plan for our subsidiary in Italy, which now has a more efficient organization in place with improved technological pricing and underwriting capabilities. In Turkey, our results were bad. They were hampered, of course, by the impact of accounting for hyperinflation in addition to the negative economic landscape that has characterized this country in recent years. Germany and Malta again, show good performance. In the latter country, our relationship with Banco de Valletta, our partner, is magnificent and does guarantee excellent opportunities to grow Life. But the challenge in '23 is going to continue to grow in Germany, and this is by a new digital distribution agreements. And then Italy, too, we need to complete our ambitious technological transformation project in Malta. And in Turkey, we will work to control volatility and adapt the structure to the country's new business climate. I would now like to discuss the different business units. The Reinsurance unit just like the rest of competitors have experienced in recent years, a high loss ratio and disasters. Despite this, the significant diversification of its portfolio and appropriate risk management has allowed it to have reasonable, very positive results. The increased demand for Reinsurance has driven a widespread increase in prices and adaptation of the sector's coverage conditions, which allows us to foresee that we're entering a cycle of better, higher profitability. In anticipation of this, MAPFRE acted very and increased the capital of the company with an amount of EUR 250 million that we hope will have excellent returns, which will allow the company to grow in better competitiveness and more profitable prices. MAPFRE GLOBAL RISKS has Had an exceptional 2022 due to driven by the growth of new customers and very well controlled loss ratio. In 2023, we faced a more complex scenario. And obviously, reinsurers costs will increase. So we'll have to be very prudent as far as underwriting. MAPFRE ASISTENCIA has finally completed its geographical reorganization. It's left 22 countries this year and at the same time, it has created a new value proposition with new digital capabilities and high usability products. This is graphically reflected in 2023 with the launch of its new branding and brand, MAWDY, which is far more modern and digital. Solunion, our credit and surety company run together with our partner, Allianz Trade, has once again achieved wonderful, fantastic results. And credit -- we'll continue growing and its geographic consolidation will continue with this credit model boosting its presence in the major Latin American multinational companies. While our asset management business has been gaining providence within the group, and it's currently playing a significant role to achieve our objectives. MAPFRE manages over EUR 52 billion around the world in 26 countries with the management of the own group's investment portfolio, but we also have a growing financial management business for both individuals and institutional clients or corporate customers. As a fact, MAPFRE AM is the largest independent nonbanking fund manager in the Spanish market with over EUR 9 billion under management at the end of 2022. This volume would be tripled if we took into account the institutional mandates. On the other hand, MAPFRE Gestión Patrimonial Asset Management is the client financial advisory service, which grew by 5% last year reaching EUR 1.4 billion, and it already has a network of 10 specialized branches across the country. We are also very, very proud of our corporate business alliance with Abante, one of the Spanish leaders in asset management. And beyond our borders, we just recently took control of La Financiere Responsable, a French investment manager specializing in ESG investing. Also in recent years and in the context of interest rates at historic lows, we have diversified our investments even more. In real estate, for example, we've already committed over EUR 800 million through funds that we have launched with the best possible partners, Macquarie, Munich Re and Swiss Life. In addition, we have done the same in the field of infrastructure also with Macquarie, in renewables with Iberdrola and with Altamar in private equity. Now let's briefly review the fulfillment of our 3-year strategic plan, which, as you know, was implemented for the first year in 2022. As we presented last year at this AGM, it's based on 3 pillars: discipline, sustainable balance and profitable growth, improvement of internal efficiency and the promotion of transformation. Regarding the growth pillar, we have achieved a fantastic increase in premiums of almost 11% for the average objective set for the 3-year period of 5% to 6%. Along with MAPFRE's positive performance in Spain, despite the loss of Bankia, we must highlight the increase in Brazil, which I've mentioned was over 45%. And in most Latin American countries in addition to the growth of Reinsurance in the United States. But we are acutely aware that we did not meet our profitability objectives given that the year-end ROE stood at 8.4%, which is still far away from the targeted average of 9% to 10% for the 3-year period. 2022 was supposed to be a year rapid recovery in our results due to the pandemic coming to the end, but the abrupt and severe deterioration of the automobile claim levels in our main markets have largely overshadowed the brilliance and consistency of our management model. In some countries, we did not foresee the tremendous cost increases. And neither could we properly manage rates due to internal weaknesses or delays or limitations imposed by the supervisors or the circumstances of the markets themselves, the distributors or competitors. Downward adjustments in rates made in all countries during the 2 years of the pandemic due to reduced vehicle use, changes in mobility patterns increases in the severity of damages, both those resulting from higher repair costs from accumulated inflation and deviations from accidents caused by speeding and distractions, with a marked increase in commercial transport and delivery vehicles on the road, along with other circumstances led to an arming deterioration, the loss ratio in this line of business. But please rest assured we're taking the most appropriate measures possible, which will help improve these results throughout the next year. And you will see it, as I said, both this year and the coming year. Furthermore, the Reinsurance unit has significantly improved compared to 2021 and unfortunately has not been able to meet its objectives so that affected its results. It was the higher claims of higher amounts was the reason for this. But diversification has protected us in the last 2 years, both Life, Health and Burial lines, which suffered high losses due to COVID, while Automobile positively offset these deviations. In 2022, the opposite occurred with the losses in the Automobile line, they being offset by the exceptional profits delivered by the Life Protection line, where we have also grown significantly. Furthermore, Spain, Brazil, reinsurance, LATAM South all achieved very good results. But also our territorial diversification is helping us enormously. We do not depend in 1 or 2 large-scale operations. Also global risk, Mexico, Central America, Germany and even assistance in smaller countries have all contributed significant results relative to their size, which strengthens our trust in our geographically diversified global model. As far as the pillar relating to improving efficiency and productivity, we're very satisfied with the progress made. The most relevant piece of data is undoubtedly the reduction in the general expenses and business acquisition ratio by almost 2 percentage points. In addition, external expenses grew less than earned premiums, which is very important. All operation plans to improve operational, technical -- technological efficiency continue ongoing, and they continue providing advantages. And our internal indicators of efficiency and productivity, all ratios concerned with perceived quality contact digitalization, outsourcing, anti-fraud, cost administration, all of them showing very positive performance. Regarding our transformation pillar, this is key to adapt to the new social realities to be able to play closer attention to consumer demands, while at the same time, we introduced sustainability into our daily -- day-to-day management and adopt effective policies for full inclusion, gender equality and so forth that are already part of our everyday work as our Chairman has already said. Specifically, we made a public commitment to reduce the gender pay gap to a near negligible level of our group worldwide and also to make sure that at least 90% of our investments are rated in line with ESG criteria. We are on course to achieve both of these objectives by the time we complete this strategic cycle. But we have ongoing, as I showed you previously, a very broad plan to develop sustainability, which has improved year-on-year and is still presenting very challenging commitments, both for the environment, social and governance. Environment, we have also updated our standards, both regarding underwriting requirements and investment requirements in business activities, clearly related to the production, distribution or consumption of energies from fossil fuels. Also making progress in gender equality, in inclusion and equal opportunities. Among all these policies, I always like to refer to one of the most satisfying policies for those who were working at MAPFRE. The fact that 3.5% of our workforce are people with disabilities, people who have been given a new opportunity in their lives, and this is extremely important. And we will continue enlarging this to make sure that more people with disabilities join our group around the world. Regarding improvements in governance together with all our actions to increase transparency, which is essential which has made significant progress in our internal and external communication. We continue to work to ensure the proper functioning of our governing bodies, including both the Board of Directors and our management bodies. In this regard, I'd like to highlight the constant renewal of these bodies, which have improved in terms of gender equality and professional diversity, such as the case of Board of Directors, which, as of today, is almost reached parity, thanks to the support shown by -- shown to our proposal of including 2 excellent professionals, Elena Sanz, who is already a member of the Board of Trustees of the Fundacion MAPFRE, and Francesco Vanni, who's got a high international financial profile, very impressive. And we would like to welcome both of them here to this Board of Directors now. Now it's time to review our public strategic commitments presented to this AGM last year. And we -- there are no major changes. In terms of growth, we maintain the same outlook, although it is to be expected that if inflation continues high, it will be much greater as it was in the year '22 where we grew by 11%. So by the end of this 3-year period, will definitely be greater than we expected. The average combined ratio will have been reduced slightly, around 96% because we believe that with this high -- rapid growth in interest rate that we're going to be able to offset this in technical profitability, we'll be able to offset it. And we maintain our objective of average ROE between 9% to 10% and the next 2 years. We also reaffirm our reference framework, which, as you know, is on the one hand, to maintain the solvency margin -- following Solvency II margin around 200% with a tolerance margin of more or less 25 points and to maintain a payout ratio greater than 50% and, of course, being very prudent with our debt, maintaining our debt ratio within 23% to 25%. As our Chief Financial Officer, Fernando Mata, has already mentioned the new International Financial Reporting Standards, which also applied to MAPFRE have been enforced since the beginning of this year. They are not going to affect our demanding commitment to transparency, although they will require additional effort in terms of adaptation and we hope that they can help us improve our business management. We don't any significant changes in the basic insurance management indicators, which we will try to continue with our strategic which has already been defined with the objectives, which I've just mentioned, taking into account the new economic context, and we also confirm the other social, public, environmental and governance objectives. And the final part of this AGM, I would like to remind you of 2 people who have made a significant contribution to MAPFRE on this Board of Directors and today, will be leaving us, but they are now seated here as guests because they have reached the foreseen statutory age. They've been in many different supervisory bodies of the group. The first one is Alfonso Rebuelta Badías, who sit with us here today. He was a Board Director for MAPFRE and other affiliates of the group for more than 20 years. He participated actively in all relevant decisions of this group concerning international development securing the business of large enterprises and the strategic development of our group. He's been a very key player, as I said, in MAPFRE's investment in international development and the significant strategic development of our group. And I would also like to refer to our very dear Jose Antonio Colomer Guiu, Board Director for the last 8 years, whose vast international financial experience has been tremendously valuable in our decision-making and these very intense recent years. Thank you, Alfonso. Thank you, Jose Antonio, for your enormous and loyal contribution to this group for so many years. And to conclude our meeting and in summary, I would like to the idea that although we did not manage to meet our combined ratio objective and therefore, the ROE was somewhat below our expectations for this first year of our strategic plan, I would like to say that this year, 2022, I consider it good and our strategic performance was very positive, and we have a very healthy balance sheet and excellent flexibility and financial solvency. And we're very proud of our business development and strategic performance this year. Ladies and gentlemen, shareholders, one more year, we're going to be able to say and be able to pay out satisfactorily once we've approved this Board of Directors proposal to pay out the complementary dividend, which is going to be a total payment of EUR 447 million or EUR 0.145 per share, which continues our position as one of the highest shareholder remuneration in the Spanish IBEX, always in cash and with a profitability much higher than the interest rates over the last few years. Ladies and gentlemen, as we've made clear throughout this Annual General Meeting in both the graphics and then some of the messages, we are very happy because we are celebrating. Our group will reach on the 16th of May, a very important milestone. We will be 90 years old, 90 years of life, 90 years of enthusiasm of effort throughout which several generations have but the development and transformation of this company. After 9 decades, we have attained our highest ever revenue level, having established ourselves in Spain's largest insurer in the world and the #1 insurance group in Latin America and undoubtedly, one of the highest reinsurance companies in the world. But beyond the commercial and technical rankings, which are very important, and we really appreciate no doubt the best one of all is the fact that our customers, our employees, our brokers, our collaborators and all of you, our shareholders, ourselves, considering that we are the #1 in everything related to our business and social commitments, thanks to our solid corporate and business values. As we've already said previously, our biggest shareholder, Fundacion MAPFRE, represents for all of you here today, the assurance of continuing to trust an independent long-term business project identified both by its entrepreneurial and innovative and value-generating spirit to be a firm creator of social wealth to help improve the prosperity and living standards of people who are in the areas where we operate so that we could at least help them achieve a fairer world with more solidarity. That is our purpose. And it's the one that you all share with us, and we will continue working towards that. I want to thank you very, very much for all of this for your trust to continue working to continue strengthening this company and continue improving these excellent results. Thank you very much for your attention today, ladies and gentlemen, shareholders. I should have left already, but before I do so, I will play a very brief video that summarizes what part of these 90 years, long 90 years of business life and social responsibility, what they have meant. Thank you once again. [Presentation]

Okay. Now this session is adjourned in this AGM. Thank you very much. [Statements in English on this transcript were spoken by an interpreter present on the live call.]