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2 NEWS 18.2.2021 MAPFRE recorded an operating result of €658 million in 2020, highly affect- ed by the COVID-19 crisis in the first six months of the year, and producing a very solid result in the second half of the year, when it generated €388 million. e Group's revenues amounted to €25.42 billion (a 10.7% drop), while pre- miums stood at €20.48 billion, (11.1% less than in 2019). is was the result of the global economic situation stem- ming from the COVID-19 crisis. e combined ratio improved by nearly 3 percentage points in the 2020 fiscal year, closing at 94.8%. Of note was the solid progress in the automobile line in all relevant countries. e Group's attributable equity at 2020 year-end stood at €8.54 billion and total assets amounted to €69.15 billion. MAPFRE's investments amounted to €44.89 billion, with 52.1 percent of this figure corresponding to sovereign fixed income, 18.1 percent to corporate fixed income and 6 percent to equities. At the end of September 2020, the Solvency II ratio stood at 180.2 per- cent, with 86 percent high-quality cap- ital (Tier 1). is ratio is the result of a prudent approach to the balance sheet and active investment management and reflects MAPFRE's strong and resilient balance sheet. e coronavirus crisis has marked an unprecedented situation at the global level in all aspects. Beginning in March, MAPFRE implemented measures in- tended to both ensure the safety of its employees and collaborators and to ensure the continuity of its operations. ese measures have been adapted as the pandemic has progressed. e most significant actions carried out in this context were the activation of the business continuity plan through remote working (up to 90 percent of the workforce at certain times and in certain markets), also maintaining the essential services (tow-trucks, repair shops, medical centers, home repairs, burial services etc.), the implementa- tion of a strategy to protect the balance sheet and preserve the Group's capital, with the necessary liquidity and financ- ing in place to neutralize any mone- tary stress, especially in operations in emerging countries and the mobiliza- tion of resources to boost the economy through direct injections to society and measures to help policyholders, es- pecially SMEs and the self-employed. ese measures are complementary to the additional social work carried out by Fundación MAPFRE to address this crisis. MAPFRE Group's social commitment in corporate tax contribution in 2020 was of 298 million euros ( which is equivalent to an effective tax rate of 26.6 percent on earnings). Almost 90 per- cent of all assets in the MAPFRE portfo- lio, excluding sovereign debt, have high or very high ESG (environmental, social and corporate governance) scores. MAPFRE has a strong social Commit- ment to employment and 98 percent of MAPFRE's 33,730 employees world- wide enjoy permanent contracts. With strong commitment to diversity, by end of 2020 46.3 percent of vacancies in job positions of responsibility were filled by women. With regard to inclusion, peo- ple with disabilities now represent 3.3 percent of the Group's workforce. During 2020 over 150,000 people ben- efited from the actions carried out by more than 4,750 employees and family members, thanks to the corporate vol- unteering program (despite having to scale down its activities during the year due to the pandemic). e Group is also committed to the environment by reducing its carbon footprint with a view to achieving glob- al emissions neutrality by 2030. MAPFRE generates operating earnings of €658 million in 2020 NICOLE MEILAK THE Central Bank of Malta has revised its economic projections for 2022 and 2023, with GDP expecting to recoup towards the end of 2022, conditional on a success- ful vaccine rollout throughout 2021. According to their projections, Malta's GDP will grow by 5% in 2021, 5.5% in 2022, and 4.7% in 2023. A decline in net exports was the main contributor to GDP contraction in 2020, due to a sharp drop in foreign demand, travel restrictions and global supply chain disruptions. Another negative contributor was do- mestic demand, with containment meas- ures and elevated levels of uncertainty adversely impacting private consump- tion and investment. is was only par- tially mitigated by increased government consumption. Employment has remained resilient in spite of less-than-desirable econom- ic conditions. Employment growth is projected to reach 2.7% in 2023, and has remained relatively positive throughout 2020. Inflation is expected to remain low in the coming years. Based on the Harmo- nised Index of Consumer Prices, annu- al inflation is set to edge up to 0.9% in 2021, from the 0.8% seen in 2020. By 2023, overall HICP inflation is expected to reach 1.7%. Naturally, public finances deteriorat- ed sharply in 2020 in part due to slow economic activity and the introduction of COVID-related fiscal support. CBM thus projects that government will re- cord a deficit worth 9.5% of GDP, which will persist throughout 2021 albeit nar- rowing to 6.6%. e deficit is expected to fall to 3.9% of GDP by 2023, as economic activi- ty recovers and COVID-related sup- port fades. However, the government debt-toGDP ratio is still projected to rise from 42.4% in 2019 to 60.3% by 2023. e Bank takes into account a more se- vere scenario, whereby restrictive health protocols are maintained beyond 2021, the vaccination process turns out to be slower than what is currently projected, and new virus strains become harder to mitigate. In such a situation, 2019 GDP levels will only be reached in 2023, at which point the debt-to-GDP ratio will rise to 68.2%. Virus mutations and restrictive health measures could delay economic recovery to 2023, Central Bank says

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