Good morning, welcome as always to this earnings presentation. This is the first quarter with me, José Manuel Inchausti, Vice Chairman, and José Luis Jiménez, Chief Financial Officer . As always, we will be assessing, then we will be taking questions. When you will.
Good morning, everyone. Good morning, all. As Javier says, indeed, yes, I will be addressing the issue of earnings, and then José Luis Jiménez will be going into the numbers portion. As you know, financial information, according to IFRS, is presented in June and December, but we are committed to transparency, so we provide updates on a quarterly basis to the market, and we explain things under local accounting practices, which is what happens in most of the countries where we have a presence. This is what we are publishing and making available today.
From a macroeconomic perspective, we see moderate global growth, moderate. There is an orderly deceleration in developed economies and more resiliency in many emerging economies. We had seen progressive normalization of inflation until fairly recently, but things have changed two weeks back, and we continue to see a very high degree of geopolitical uncertainty. As you know, of course, we focus on Iran, which introduces volatility in most of the economic sectors.
Now, in this context, I want to underscore the fact that Mapfre has had a healthy first quarter. The Group has earned EUR 9.697 billion, EUR 9.7 billion, and premiums of EUR 8.4 billion, in line with the same period last year. We see then EUR 310.9 million. That's 12.7% more than in the same period last year, which tells us that our model is robust enough to generate results even in very difficult settings.
Furthermore, we continue to increase our profitability with an adjusted ROE of 13.8%, and we are solvent in a very solid manner with a ratio of 205.3%, clearly above the midpoint of our target range. Our business model is diversified, as we know, by regions, by business areas, this allows us to continue to grow in a balanced and sustainable way. This diversification is again key in a quarter which has a backdrop of uncertainty. Our presence in LatAm, which is strategic for us because that's where we are the leading multinational, is less exposed to direct economic consequences if we think about current geopolitical reality. Premiums have grown in this quarter to a very reasonable degree indeed. Another important element is the evolution of FX. After a number of years of notable impact, this effect now begins to be less.
Although the dollar has appreciated over this year, the impact over the past 12 months on our accounts continues to be negative. If it continues to appreciate, we will see how the effect is further diluted in upcoming quarters. Actually, in current rate of exchange, the volume of premiums of the group is in line pretty well with that of last year, which confirms that the underlying business continues to be solid and will allow us to see growth in terms of premiums. From a technical point of view, the earnings results have been clearly backed by autos, which consolidates the improvement that has been tracked over the past following quarters. Combined, 93.2% is the number. This is very satisfactory, and I would underscore the excellent evolution of Mapfre Re.
The attributable results grows by nearly 67%, this thanks to financial results and no relevant catastrophes, contributing stability and diversification to the sum total of the group. Finally, I would remind you that last time we met as GSM, we announced our strategic plan objectives with regards ROE and combined ratio. Of course, very cautiously because of the geopolitical reality and its impact on the different economies. In this quarter, in terms of profitability, allow us to think that, yes, we will be achieving those objectives. José Luis, up to you.
José Luis Jiménez, member of the board and CFO, talks about the premiums. We see EUR 310.9 million, which is an increase of 12.7% if we compare with last year's numbers. Profitability is excellent, and in general, the business is doing well. We see premiums EUR 8.4 billion with an increase which is conditioned by FX. Without this effect, the volume would have been stable, which I think confirms the fact that, yes, it is a very solid business. As José Manuel advised us, we expect to grow sustainably in upcoming quarters.
Now, let's look at the branches. Let's see the excellent results. Growth to the tune of 5%, whereas life savings has been affected by the setting and by campaigns launched over the first quarter of last year. I will point something out afterwards. We've seen growth in investment funds in Spain and in Brazil, which I think bolsters our decision to be the benchmark in terms of financial planning.
Now by regions and units, this is the evolution over the quarter. In Iberia, premiums, we see the number on screen with a result of practically EUR 138 million, which represents a growth of 14.14%. Spain continues to evolve in a positive way. Auto with a major improvement in the combined ratio, which is excellent in terms of that 92.5%. If we think about the adjustment in technical measures, we've seen the growth in main branches in the first quarter. We've got more than 200,000 customers with Banco Santander. In Brazil, we see EUR 1.164 billion in premium size with an attributable results of 65.4%, which is 5.8% more. Combined ratio is at levels which are very solid indeed, about 75%. This is telling of tremendous technical profitability.
In other parts of LatAm, we see growth of 4.4%. The numbers are very telling in and of themselves, fostered by Mexico with a growth of 16.6%. I'm talking here about the premiums. This region contributes stability, although with a certain pressure in terms of profitability because of rate of exchange and the results in the investment portfolios.
North America, premiums are EUR 593 million, with a drop of 10.2%. Why? Because of FX. In constant terms, performance would have been stable. What is relevant here is that there is a clear improvement in the technical profile. Attributable is EUR 30.5 million, and combined ratio improves and is now at 95%.
In EMEA, premiums grow by 1.6%. The number is EUR 484 million, and profits are at EUR 2 million. We continue to see that improvement in the combined ratio. Mapfre Re does very well indeed. We see premiums at EUR 290 million. With that reduction, which is the result of the evolution of the dollar and the change in market conditions, whereas attributable results is 76.8%, the number here is EUR 85.4 million. Thanks to less activities and our investment portfolio. The combined ratio is at 98.6%, and this reflects the technical solidity of the business. Within this business, reinsurance grows by nearly 96%, whereas global risks is evolving positively with ratios of less than 99.0%. Assistance, MAWDY, we see operating income growing by 7.6%, attributable and combined ratio, which improves and is at 92.3%.
Now we are going to talk a little bit about investments and cash. Our portfolio, our investment portfolio is over EUR 50 billion with a growth of 3.6%, as you can see, and the structure is very, very prudent. We see basically fixed income here. Assets under management are EUR 67+ billion. That's 4.3% more. Why? Because of investment funds, basically, which grow by 12.3% in this quarter. Now, as to the main technical indicators, we see non-life 93.2%, which is very satisfactory and which tells of the business' very good health. Our solvency ratio is at 205.3%.
Clearly, the upper tranche of our objective, which I think tells about our strength and strategic flexibility. As you can see, our leverage ratio has grown slightly beyond 26%. It is at 26.4%, because we are issuing two products simultaneously until mid-May. We decided to think about those senior bonds, remember, in January. We took advantage of better market conditions, avoiding the derived volatility from the Middle Eastern conflict. This was at an average 3.4% rate and could now go to 3.8%, nearly 4% if current market conditions are sustained. As to our share price, at the end of March, EUR 3.81 was the price, despite the fact that there was more volatility in the market.
Over the past few weeks, we've seen a recovery of the share price, which is now about EUR 4, EUR 4.10. Please remember that 2025 was an exceptional year. We see that 75% and new historical maximum numbers. Ladies and gentlemen, thank you very much for your attention. José Manuel Inchausti takes over now.
Let me conclude by saying that it's been a solid quarter. We have seen growth. We have seen very positive technical evolution and a very robust financial position in a global setting which continues to be very demanding and definitely overcast by uncertainty. I think that this all speaks for the business model's good health based on market and geographical diversification, prudent risk management, and a very disciplined approach to strategy. We grow, but we grow in a balanced way.
We improve our profitability, we continue to be very, very solid. This guarantees the kind of flexibility which is needed in order to face reality with full guarantees. Auto, Mapfre Re, together with the stable contribution of Lat Am, all of this speaks to the capacity we have to generate results recurrently and sustainably, even in these very volatile settings, which allows us to continue to commit to our shareholders.
Our final dividend will be paid out, the complementary for 2025, the date being May 28. The fact that there's been that negative FX result, which is beginning to moderate now, allows us to tackle upcoming quarters in a more confident manner. Of course, always cautious, always prudent, because we have to remember the geopolitical realities and the uncertainties that we have to deal with in the different markets where we have a presence.
All of which says that the decision taken at the most recent GSM to take a second look at the objectives in our second strategic plan, adapting to the new setting without, of course, sacrificing ambition or discipline, which are very telling for Mapfre. As I say, we are going to be very prudent, but we're going to also be very assured. Our model is proven, our financial positioning is solid, and all of the persons who make up this group confidence. We are ready to grow. We are committed to grow. Thank you very much, and we are here looking forward to your questions.
Thank you very much to both. We have received a number of questions. We are going to group the questions together, and we will be posing them in a minute.
The first question from [Data Sierra], Héctor Sánchez and Héctor Caballero ask about the evolution of premiums for the group and in Spain, because the rest of the sector has performed differently.
Let me take this question, and then José Luis will add details. In group terms, the main effect has already been discussed in that presentation. Foreign currency, FX, which deducts about 2 points growth, without which our growth levels would have been stable vis-a-vis the year 2025. Some regions are growing reasonably. That would be basically Latin America. There are other regions such as the United States of America, which have been very much affected by that FX and by branches also. We see risk, life risk and other businesses which have been very much affected because of those dollarized policies which are affected by FX.
As to Spain, in terms of evolution, the evolution has been healthy in some areas. Our digital channel, for instance, Verti, grows more than the market does. Our bank channel grows more than the market, especially with Banco Santander, 200,000 customers, as has been pointed out by José Luis . There are others that are also growing to a reasonable degree. That would be health, which is growing by about 4%, and life risk proper. We believe that we are prepared. We are poised to grow in upcoming quarters. Because our technical reality is a very solid one, with combined ratios that are low and having done our homework ever since years ago in order to achieve these technical results that are very positive indeed.
Secondly, because we have our Net Promoter Score ratings, which position us in Spain as leaders in well nigh all of the business branches. Thirdly, because we see very positive growth in terms of customers in Spain in this quarter. Our technical platform is excellent. We take good care of our customers, and we are on the upward mode in terms of customer growth. This allows us to be optimistic when we think about upcoming quarters. We are sure that we are going to continue to see growth levels in upcoming quarters in Mapfre and in Spain.
Another question now, adding to José Manuel's response: Has there been a calendar effect in Spain?
Last year, we issued a transport policy which was actually quite telling, which has not been issued this quarter, which is why the numbers are what they are, not that favorable, when compare. In life savings, we want to be the benchmark in Spain in terms of financial planning. Last year, there was a concentration, many maturities in the first quarter, and this is something that has not happened this time around. Life savings numbers are going to evolve as the year passes, and we're convinced that growth will eventually come to the forefront.
We have another question. I am sorry, I can't read it. Aitor Caballero from el Economista: That 6% growth rate as fixed in the GSM, will that be achieved?
Last year was a good year for you in terms of life savings. We've seen changes in the first quarter of 2026. Let me take these questions. Let me say that we are engaged, we are committed. We will continue to be engaged and committed as per the most recent general shareholders meeting. If you remember, we upped our ROE commitment. We are on our way to achieving that objective. We also improved by 1 point that combined ratio commitment. Our combined ratio is actually on the lower tranche of the commitment that we had confirmed. We committed to growing 6% at a rate of exchange that would be constant. There's no indication that we are not going to make good on this objective.
As I said before, we're very optimistic when we think about upcoming quarters. We're optimistic, as I say, regarding growth. We are working very hard along those lines. You've added some additional details perhaps? Life savings. Premiums, that there will be different numbers from last year's, and then there's seasonality, which is diluted as time passes. We've done very well with regards investment funds at a group level, especially Brazil and Spain, where growth has been in excess of 12%. We have engaged to continuing to grow life savings, and we believe that the rest of the fiscal year will see this achievement.
Julio Muñoz, earnings are as were promised for the insurance activity, but we see that the rate of exchange continues to affect us. Do you think that there may be changes in view of strengthening dollars in view of the war? We hear about two hikes for this year, which will see changes in the investment portfolio and margins.
Thank you. I think that's the million-dollar question, right? What will happen? What's going to happen in the Middle East? Is this conflict going to last for a long period, for a shorter period? This is going to affect FX, and this is going to affect inflation, no doubt. The insurance sector usually is a defensive one, and it's counter-cyclical, if you will. If the reduced impact, well, I don't think that there's going to be a very serious consequence. It is true that inflation is above and beyond the official interest rates in the case of Europe.
It would be foreseeable that the European Central Bank, before the end of the year, actually bring interest rates beyond the level of inflation, because if not, we will be repeating mistakes made in the past, especially during the pandemic, where everything was late, and the result was a much more aggressive hike in interest rates than would have been necessary.
What about FX? Well, the theory says that they are moved by two factors. In the short term, the parity, so that would be portfolio flows, what happens with rates one place or another, the rates will vary. In the long term, it's the inflation differential. These are more, I think, commercial flows, and this is what we've been seeing over the past 12 months.
It's a little bit different because 12 months ago, when we heard about the tariff war, rates of exchange performed atypically, not corresponding to the fundamentals. We have a portfolio and a business model which is truly diversified, and usually, when the dollar or when Latin American currencies swing to the one side, others swing to the other side. There was a certain natural, if you will, coverage or hedge. Now, we're talking more about politics, not from any other point of view, and this led to a depreciation of the dollar, which in turn led to a depreciation of LatAm.
In a nutshell, what have we seen? Well, we've seen at the beginning of the year a certain return to basics, if you will. We see how many countries where we have a presence, Brazil, for instance, which is so important for us. Well, the currency has perhaps appreciated so far this year by 10%. This is a swing, and it's beginning to correct now, this year. We are confident that especially Latin American currencies throughout the year will no longer detract, but will add. This is what we have expected once the fundamentals are back.
All right, if you can look at Chile, there's a specific question about Chile. In the meantime, José Manuel, again, the Middle East, again, the conflict. The question is, will there be consequences for the business? Do you think it's possible to achieve the objectives that were announced at the most recent GSM?
Thank you for the question, and as I said before, at this point in time, we stand by our three public commitments, which we advised of in the most recent GSM. Growth, 6%, combined ratio, and the claims ratio. As I say, we are on the best possible track. We do not think it's necessary to take a second look at any one of these objectives. Now, of course, the geopolitical reality affects all of us. We are tracking it. We are monitoring very closely, especially the impact it may have on inflation and costs. I can only say that we monitor these effects, especially inflation, on a daily basis, the technical costs of the company.
Thanks to our studies center, we have access to a monthly update of the inflation expectations the world over, assessing a number of different scenarios, which I repeat, we assess on a monthly basis, thanks to the work and research carried out by our studies center. Of course, we believe that we stand solidly because we're diversified in terms of currencies, in terms of regions, in terms of types of business, and also because of the very solid technical work which we have completed over the past years.
This allows us to be in a, I say, a very robust position. If we were to see that the consequences, the economic consequences of the current geopolitical reality were to affect very clearly the inflation levels. Well, we would have to reassess them, especially what we would have to do is adapt to our price, to our pricing, and rapidly onboard those inflation variations. We are, I think, very well prepared to do that.
Thank you, José Manuel. Sergio Sánchez from Aseguranza asks, last week we heard that Mapfre was an example to follow, especially the prices that result from the hike in the price of fuel. Do you think other companies will follow Mapfre's steps?
Thank you, Sergio, for that question. With regards other companies, well, as you know, we never issue an opinion. We never talk about what our peers do. What I can say is that we are very happy to see what this organization has made manifest because it is very much along the lines of our Mapfre philosophy.
Our vendors, our suppliers are very important for us, and we try to take the best possible care for them. I remember that during the pandemic, Mapfre made available a credit line, which was free from the point of view of interest rates, to all of the important vendors for our value chain. We look for long-lasting relationships. Of course, we don't always agree 100% on absolutely everything, but we try to make sure that our vendors are happy to work with us because what we want is for them to be able to provide our clients the best possible service.
Thank you. Another question: What would you say about a prudent approach? Could you explain what the percentage is in terms of these forecasts? In geopolitical terms, is this what encourages you to be very prudent? Will the objectives perhaps be affected by the impact of Iran, the Iran conflict?
I have to say it's very difficult to talk in numbers. If we knew what the inflation levels were going to be, we could be more assured as to what's going to happen. We don't know whether it's going to be a short conflict, and then we would be able to digest the impact, so it would affect growth, but not to a great consequence maybe. It can be a mid to long-term conflict, and the consequences then will be more than what most analysts are forecasting or most study services are forecasting. In any case, we are very certain that our business model is solid. It's diversified by geographies. It's diversified by business branches.
When we say that we are convinced that we're going to make our objectives, it means that unless something much, much worse than what markets are discounting right now, our objective is to make good, and perhaps surpass, if possible, the objectives that we have set forth. There's a part that doesn't depend on us. Inflation growth perhaps, or a huge spike in the price of oil.
Well, it makes a huge difference if the barrel is at 50 or 200. That's going to affect the economy. That's going to affect the markets. The way we go about managing our business is a very cautious one. We're very prudent. In the first quarter, we've also been able to lower the risk profile of our investment portfolio, which was prudent and conservative, the most conservative, I believe, of all listed insurance companies in Europe.
Well, we did take advantage of the good times in January and February, and this has allowed us to do well. We would not have been able to forecast what happened in the Middle East, of course not. Because we are prudent, because that is our philosophy, the fact of the matter is we cannot complain, and it was a wise decision. The same with regards to the emission when we reached out to markets in January before the maturity of the previous activity, which is actually good until May. We were prudent, as I say, and the results have been good, and we probably accessed much more affordable funding than would be possible now were we to have to think about that activity now.
You've talked about LatAm. What is the role of Chile specifically in this evolution? What is the importance of this market for Mapfre?
Let me answer by saying that LatAm is very important for us, and in the current geopolitical context, I would underscore that this is a region that has benefited, if you will, by what is currently happening in the world. Asia, Europe, perhaps even the U.S. are feeling that impact, but the geostrategic position of LatAm, which is self-sufficient, is a good thing for Latin America. Latin America today is not the Latin America of three decades ago. In the past, many of these countries issued in dollars, and in 1973, in 1979, in 1990, in 2008, we saw how those currencies suffered. We saw how their bond markets also had major correction swings. Ever since the conflict, it's been just the contrary.
It's a region which is isolated, which is self-sufficient, we observe that the different currencies have been strengthened significantly over these past three months. Many of these countries which are also producing oil or gas, well, nobody likes a war or a conflict, but in relative terms, LatAm is a region that has benefited. This is not us speaking. This is something we have heard from other entities who say, who share their idea that this might be an excellent year for the region. This is important in Chile. We have a major presence there. We just signed the bank assurance agreement with the Banco Internacional. It's important for us, we do believe that the evolution of the region sum total will continue to be very strong.
We will continue to see growth in terms of earnings and in terms of premiums. Reinsurance or global continues to be important and actually is beginning to show a certain weakness. Even so, the conditions are much better than what we have benefited from five or eight years ago.
Another question from Sergio Sánchez, who wants to know about the ranking. The question is, how do we read that current ranking, which has been published recently? Specifically, do you think that as time passes, the three groups will become more and more akin?
Let me answer by saying that Mapfre is a global company, the ranking, the more relevant ranking for us is the global ranking, which has just been published actually by ICEA, we see very, very clearly how much ahead Mapfre is if you compare with other Spanish insurance companies. I think that we can't really compare Mapfre with others. If you look at the company, and you compare it with other Spanish market entities, the differences are just very, very important, so we have to think about things from a global perspective.
If we land in Spain, that first quarter ranking, the numbers for the first quarter, in the case of Mapfre, are hit by the effects that José Luis pointed out, the one-offs, transport insurance and life savings because of the different timelines of maturities, which on a yearly basis happen at a different point in time because that's not a linear exercise. Which means that upcoming quarters will have us seeing better growth levels in Spain and will have us seeing different positions in the ranking.
Probably, the results at the end of the year will be different from the numbers that we see in the first quarter.
Well, thank you very much, gentlemen. We have no further questions. As always, we will be available if you want to reach out to us directly. Thank you very much for having joined us this morning for our earnings presentation, and good day.