Integrated Report 2021

MAPFRE S.A.

1. LETTER FROM THE CHAIRMAN AND CEO

Dear friends,

We would all have liked for this year that has just ended to also have marked the start of the end of this terrible pandemic that the world is dealing with. When we approved our Strategic Plan 2019-2021, we looked ambitiously at a future that, after a long and severe economic crisis, then seemed very promising - a future of recovery and growth in most economies, and even the beginning of a new cycle of economic and social development. Nobody expected what came next, truncating all the planning made by companies, governments and institutions, and the future of billions of people, between the infected and the deceased. The economic crisis caused by the paralysis of the economies has been, and is still in some regions, more devastating than the damage caused by the virus itself.

This is the reality that we all had to face during 2021 and, on which, before going into the purely financial details of the fiscal year, I would like to share some reflections.

The first is that not even a global pandemic has managed to move the needle on our essential road map that identifies us as a top-tier insurance group. The decisions to protect the value of the business that we adopted as early as March 2020 have also proven to be correct in 2021. What's more, in this second year of the pandemic we have managed to raise profitability and continue - albeit sometimes at a slower pace, conditioned by prevailing circumstances - with the company's intense transformation process in all markets. Nor has the virus stopped us in our intense commitments as a global company. We have successfully completed our Sustainability Plan 2019-2021, and we will submit the next three-year Sustainability Plan for approval at the Annual General Meeting 2022, taking one more step forward with an even more ambitious strategy that raises the demands of our commitments in environmental, social and governance (ESG) matters, both as a company and in our insurance and reinsurance activity.

Secondly, we have continued and reinforced the commitments of our powerful social action. We are a company that is, and is perceived to be, active in the pursuit of a more just, equal and inclusive world. Lastly, the new Sustainability Plan 2022-2024 will also facilitate us in improving the company's governance, where we are taking bold steps, as can be seen in this Report.

Thirdly, among the things that the pandemic has not diminished is our gratitude to you, the shareholders, with whom we maintain our characteristic commitment to a sustainable dividend over time, adjusted to the specific reality that we have been going through, but sustainable nonetheless, and in cash, as always. Over the last 10 years, MAPFRE has paid out dividends totaling almost 4.2 billion euros, with a dividend yield of between 4 and 8 percent, consistently one of the highest on the IBEX 35.

We are, and will continue to be, a company that strives to not only always maximize MAPFRE's financial profitability, but also its social profitability, and we are committed to doing this to the best of our ability, with rigorously ethical behavior and transparent relations with all our of stakeholders.

Last year also was the final year of the Strategic Plan 2019-2021, a plan that, as I pointed out at the beginning, was boto govean environment that turned out to be very different indeed from the one we later found ourselves in. This Integrated Report presents you with complete information about the plan. Allow me to give you my opinion: if we were a different company - if we weren't MAPFRE, a company that seeks excellence in everything it does and executes its activity under the most demanding parameters - the plan would have to be qualified as successful, taking into account the framework in which we have had to maneuver. The reality that we faced prevented us from meeting all the aspirational financial objectives we had set for ourselves, but in exchange we did make good on all the company's strategic initiatives for the future: intensifying the focus on the customer, strengthening our Digital Business, boosting our diversification, especially in relation to the Life business, positioning ourselves in the MAPFRE 3.0 automobile insurance that addresses the new reality of the automobile and mobility, perfecting the global efficiency model, extending the implementation of analytical data management, and managing the changes required in both people and the organization under what we called the MAPFRE Digital Challenge.

MAPFRE S.A.

Additionally, we have also surpassed the targets set for other equally important indicators, such as those pertaining to inclusion and talent. We are very proud that people with disabilities make up

3.5 percent of our total workforce, compared to the target of 3 percent that we had set for ourselves. In relation to talent, we have improved the digital skills index of the workforce to 73.6 percent, and we are managing our female talent better, also raising its growing presence in the decision-making levels of the company. We promised to promote this development so that at least 45 percent of vacancies were filled by women, and at the end of the plan, the corresponding figure was 49.1 percent.

Moving on to the business figures now, our revenues rose to in excess of 27.2 billion euros, an increase of more than 7 percent. Insurance premium growth - the very heart of what we do - was even better, at 8.2 percent, with both Iberia and LATAM turning in excellent performances, which is very relevant considering the contracted economic environment of that region. Earnings, which totaled 765 million euros, including the extraordinary receipt deriving from the breakup of one of the bancassurance alliances that we had in Spain, reflect the enormous resilience of your company. As far as the capital gain generated from this alliance goes, it is important to know that most of it has been used to strengthen the business, laying the foundations to increase the future profitability of the company, adapting and improving the operational efficiency of the operations in Spain and Italy, as well as optimizing the Group's financial structure.

MAPFRE's business model and our strategy are an example of how the company tackles global sustainability challenges, manages ESG risks and opportunities, and innovates in the development of insurance products and solutions that benefit customers and the society in all geographies where it operates.

ESG risks are naturally integrated into our business processes, providing long-term solutions. ESG risk and opportunity management helps in decision-making in areas such as underwriting, investment, innovation in products and services, all of which are key to consolidating trust with stakeholders.

We remain committed to the United Nations Global Compact and the Sustainable Development Goals (SDGs) of the 2030 Agenda. And as an insurer, we are accompanying our clients in the task of accelerating an orderly transition from carbon- based economies to more environmentally friendly processes and activities. At MAPFRE, we believe that this transition also has to be fair, considering not only future generations, but also those people who today depend on the current economic and social reality.

At a time when everything is questioned, the presence of solid and profitable companies that last through time and show that they are capable of giving the best of themselves even when the world grinds to a halt, is something to be valued. These are the times when having reliable, supportive and committed companies like MAPFRE matters.

We enthusiastically embrace our new Strategic Plan, where priority will be given to three main elements: growth, efficiency and productivity, and cultural and organizational transformation. This approach will allow us to make the most of the recovery that, although asymmetrical, is already beginning to be felt in the different regions of the world.

We are ambitious and we seek out new avenues for growth. We are competitive, and we want to be more and more so with the investments we have made in technology, which will enhance our efficiency and profitability. We work to continue to be perceived as an organization that is increasingly open, transparent and connected, in person and digitally, to all our stakeholders. And always maintaining a sharp focus on service excellence and the constant search for greater efficiency and profitability.

The figures presented here reflect a solid, profitable and solvent company. All of our transformation projects are progressing satisfactorily, and we are prepared to continue being the largest Spanish-owned insurer in the world and occupying leadership positions in most markets and, in addition, doing everything that we do with a profound social commitment, which is one of the hallmarks of our identity. Companies that do not understand that people expect a different, social, human and sustainable value proposition, and not just an economic one, run the risk of disappearing from view, and in this, MAPFRE, the company that you are a part of, is most definitely a few decades ahead of the pack.