INDEX SUMMARY A. BUSINESS AND PERFORMANCE B. SYSTEM OF GOVERNANCE C. RISK PROFILE D. VALUATION FOR SOLVENCY PURPOSES E. CAPITAL MANAGEMENT

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2 INDEX SUMMARY A. BUSINESS AND PERFORMANCE A.1 BUSINESS A.2 UNDERWRITING PERFORMANCE A.3 INVESTMENT PERFORMANCE A.4 PERFORMANCE OF OTHER ACTIVITIES A.5 ANY OTHER INFORMATION B. SYSTEM OF GOVERNANCE B.1 GENERAL INFORMATION ON THE SYSTEM OF GOVERNANCE B.2 FIT AND PROPER REQUIREMENTS B.3 RISK MANAGEMENT SYSTEM INCLUDING THE OWN RISK AND SOLVENCY ASSESSMENT B.4 INTERNAL CONTROL SYSTEM B.5 INTERNAL AUDIT FUNCTION B.6 ACTUARIAL FUNCTION B.7 OUTSOURCING B.8 ANY OTHER INFORMATION C. RISK PROFILE C.1 UNDERWRITING RISK C.2 MARKET RISK C.3 CREDIT RISK C.4 LIQUIDITY RISK C.5 OPERATIONAL RISK C.6 OTHER MATERIAL RISKS C.7 ANY OTHER INFORMATION D. VALUATION FOR SOLVENCY PURPOSES D.1 ASSETS D.2 TECHNICAL PROVISIONS D.3 OTHER LIABILITIES D.4 ALTERNATIVE METHODS FOR VALUATION E. CAPITAL MANAGEMENT E.1 OWN FUNDS E.2 SOLVENCY CAPITAL REQUIREMENTS AND MINIMUM CAPITAL REQUIREMENT E.3 USE OF THE DURATIONBASED EQUITY RISK SUBMODULE IN THE CALCULATION OF THE SOLVENCY CAPITAL REQUIREMENT E.4 DIFFERENCES BETWEEN THE STANDARD FORMULA AND ANY INTERNAL MODEL USED E.5 NONCOMPLIANCE WITH THE MINIMUM CAPITAL REQUIREMENT AND NONCOMPLIANCE WITH THE SOLVENCY CAPITAL REQUIREMENT F. ANNEXES QRT PUBLIC Telefónica Insurance Solvency Financial Condition Report 1

3 SUMMARY Telefónica Insurance Solvency Financial Condition Report 2

4 A. BUSINESS AND PERFORMANCE A.1 BUSINESS Telefónica Insurance Solvency Financial Condition Report 3

5 A.2 UNDERWRITING PERFORMANCE Telefónica Insurance Solvency Financial Condition Report 4

6 > >8.000 > > Telefónica Insurance Solvency Financial Condition Report 5

7 ( ) ( ) ( ) A.3 INVESTMENT PERFORMANCE Telefónica Insurance Solvency Financial Condition Report 6

8 Investment income Income from other investments Value readjustments on investments Gain on the realisation of investments Investment charges Investment managing charges, including interest ( ) ( ) Value adjustments on Investments ( ) (49.236) Losses on the realisation of investments (2.603) ( ) ( ) ( ) Telefónica Insurance Solvency Financial Condition Report 7

9 A.4 PERFORMANCE OF OTHER ACTIVITIES A.5 ANY OTHER INFORMATION Telefónica Insurance Solvency Financial Condition Report 8

10 B. SYSTEM OF GOVERNANCE B.1 GENERAL INFORMATION ON THE SYSTEM OF GOVERNANCE Telefónica Insurance Solvency Financial Condition Report 9

11 Telefónica Insurance Solvency Financial Condition Report 10

12 Telefónica Insurance Solvency Financial Condition Report 11

13 Telefónica Insurance Solvency Financial Condition Report 12

14 B.2 FIT AND PROPER REQUIREMENTS Telefónica Insurance Solvency Financial Condition Report 13

15 B.3 RISK MANAGEMENT SYSTEM INCLUDING THE OWN RISK AND SOLVENCY ASSESSMENT Telefónica Insurance Solvency Financial Condition Report 14

16 B.4 INTERNAL CONTROL SYSTEM Telefónica Insurance Solvency Financial Condition Report 15

17 B.5 INTERNAL AUDIT FUNCTION Telefónica Insurance Solvency Financial Condition Report 16

18 Telefónica Insurance Solvency Financial Condition Report 17

19 B.6 ACTUARIAL FUNCTION Telefónica Insurance Solvency Financial Condition Report 18

20 B.7 OUTSOURCING Telefónica Insurance Solvency Financial Condition Report 19

21 o o Telefónica Insurance Solvency Financial Condition Report 20

22 B.8 ANY OTHER INFORMATION Telefónica Insurance Solvency Financial Condition Report 21

23 C. RISK PROFILE C.1 UNDERWRITING RISK Telefónica Insurance Solvency Financial Condition Report 22

24 C.2 MARKET RISK. Telefónica Insurance Solvency Financial Condition Report 23

25 Telefónica Insurance Solvency Financial Condition Report 24

26 C.3 CREDIT RISK Telefónica Insurance Solvency Financial Condition Report 25

27 Corporate Issuers: 5% per issuer. Financial Issuers: 10% per issuer. Sovereign Issuers: 15% per issuer. AAA issuers without limit. Group companies without limit. C.4 LIQUIDITY RISK Telefónica Insurance Solvency Financial Condition Report 26

28 C.5 OPERATIONAL RISK Telefónica Insurance Solvency Financial Condition Report 27

29 C.6 OTHER MATERIAL RISKS C.7 ANY OTHER INFORMATION Telefónica Insurance Solvency Financial Condition Report 28

30 D. VALUATION FOR SOLVENCY PURPOSES 1. Assets Telefónica Insurance Solvency Financial Condition Report 29

31 Debtors arising out of direct insurance operations: Debtors arising out of reinsurance operations: Other debtors: Cash at bank: Tangible assets and stocks: Intangible assets: Telefónica Insurance Solvency Financial Condition Report 30

32 Deferred tax asset: 2. Technical provisions Gross Best estimate of claim provisions: claim provisions Motor vehicle liability insurance 229, Fire and other damage to property insurance 1,147, General liability insurance 1,777, Miscellaneous financial loss 20,760, Telefónica Insurance Solvency Financial Condition Report 31

33 N+1 N+2 N+3 Motor vehicle liability insurance 50% 30% 20% Fire and other damage to property insurance 50% 30% 20% General liability insurance 50% 30% 20% Miscellaneous financial loss 50% 30% 20% Gross Best estimate of premium provisions: Loss ratio Motor vehicle liability insurance 104% Fire and other damage to property insurance 72% General liability insurance 72% Miscellaneous financial loss 49% Risk margin: In summary: Risk margin: EUR 2,192,339. Telefónica Insurance Solvency Financial Condition Report 32

34 Best estimate of the part of reinsurers in the premium provisions Unearned premiums Motor vehicle liability insurance 24, Miscellaneous financial loss 12,888, Loss ratio Motor vehicle liability insurance 104% Miscellaneous financial loss 49% Best estimate of the part of reinsurers in the claims provisions claim provisions Motor vehicle liability insurance 0.00 Fire and other damage to property insurance 1,090, General liability insurance 1,688, Miscellaneous financial loss 20,535, Telefónica Insurance Solvency Financial Condition Report 33

35 Loss ratio Motor vehicle liability insurance 104% Fire and other damage to property insurance 72% General liability insurance 72% Miscellaneous financial loss 49% Adjustments Motor vehicle liability insurance 0.00 Fire and other damage to property insurance General liability insurance Miscellaneous financial loss 8, In summary: 3. Other liabilities Telefónica Insurance Solvency Financial Condition Report 34

36 Other provisions for taxation: Other statutory and regulatory provisions: Creditors arising out of insurance operations: Creditors arising out of reinsurance operations: Other creditors: 4. Alternative valuation methods 5. Other information Telefónica Insurance Solvency Financial Condition Report 35

37 E. CAPITAL MANAGEMENT E. 1. Own funds E. 2. SCR/MCR Telefónica Insurance Solvency Financial Condition Report 36

38 Net written premiums in the last 12 months Net Best Estimate of technical provisions Motor vehicle liability insurance 10, , Fire and other damage to property insurance 5, , General liability insurance 2, , Miscellaneous financial loss 72,597, , E. 3. DurationBased Equity risk submodule E. 4. Difference between the standard formula and the intern model used E. 5. Noncompliance regarding the MCR and noncompliance regarding the SCR E. 6. Any other information Telefónica Insurance Solvency Financial Condition Report 37

39 F. ANNEXES QRT PUBLIC

40 S Balance sheet S Balance sheet Solvency II value C0010 Assets Goodwill R0010 Deferred acquisition costs R0020 Intangible assets R0030 Deferred tax assets R0040 Pension benefit surplus R0050 Property, plant & equipment held for own use R ,00 Investments (other than assets held for indexlinked and unitlinked contracts) R ,25 Property (other than for own use) R0080 Holdings in related undertakings, including participations R0090 Equities R0100 Equities listed R0110 Equities unlisted R0120 Bonds R ,00 Government Bonds R0140 Corporate Bonds R ,00 Structured notes R0160 Collateralised securities R0170 Collective Investments Undertakings R ,25 Derivatives R0190 Deposits other than cash equivalents R0200 Other investments R ,00 Assets held for indexlinked and unitlinked contracts R0220 Loans and mortgages R0230 Loans on policies R0240 Loans and mortgages to individuals R0250 Other loans and mortgages R0260 Reinsurance recoverables from: R ,54 Nonlife and health similar to nonlife R ,54 Nonlife excluding health R ,54 Health similar to nonlife R0300 Life and health similar to life, excluding health and indexlinked and unitlinked R0310 Health similar to life R0320 Life excluding health and indexlinked and unitlinked R0330 Life indexlinked and unitlinked R0340 Deposits to cedants R ,00 Insurance and intermediaries receivables R ,00 Reinsurance receivables R ,00 Receivables (trade, not insurance) R ,00 Own shares (held directly) R0390 Amounts due in respect of own fund items or initial fund called up but not yet paid in R0400 Cash and cash equivalents R ,00 Any other assets, not elsewhere shown R ,23 Total assets R ,03 Telefónica Insurance Solvency Financial Condition Report 1

41 Liabilities Technical provisions nonlife R ,12 Technical provisions nonlife (excluding health) R ,12 Technical provisions calculated as a whole R0530 Best Estimate R ,39 Risk margin R ,73 Technical provisions health (similar to nonlife) R0560 Technical provisions calculated as a whole R0570 Best Estimate R0580 Risk margin R0590 Technical provisions life (excluding indexlinked and unitlinked) R0600 Technical provisions health (similar to life) R0610 Technical provisions calculated as a whole R0620 Best Estimate R0630 Risk margin R0640 Technical provisions life (excluding health and indexlinked and unitlinked) R0650 Technical provisions calculated as a whole R0660 Best Estimate R0670 Risk margin R0680 Technical provisions indexlinked and unitlinked R0690 Technical provisions calculated as a whole R0700 Best Estimate R0710 Risk margin R0720 Other technical provisions R0730 Contingent liabilities R0740 Provisions other than technical provisions R ,00 Pension benefit obligations R0760 Deposits from reinsurers R0770 Deferred tax liabilities R ,55 Derivatives R0790 Debts owed to credit institutions R0800 Financial liabilities other than debts owed to credit institutions R ,00 Insurance & intermediaries payables R ,00 Reinsurance payables R ,00 Payables (trade, not insurance) R0840 Subordinated liabilities R0850 Subordinated liabilities not in Basic Own Funds R0860 Subordinated liabilities in Basic Own Funds R0870 Any other liabilities, not elsewhere shown R0880 Total liabilities R ,68 Excess of assets over liabilities R ,35 Telefónica Insurance Solvency Financial Condition Report 2

42 S Premiums, claims and expenses by line of business S Z Axis: VG/Statutory accounts DI/Year to Date NonLife (direct business/accepted proportional reinsurance and accepted nonproportional reinsurance) Medical expense insurance Income protection insurance Line of Business for: nonlife insurance and reinsurance obligations (direct business and accepted proportional reinsurance) Fire and other Motor vehicle Marine, aviation Credit and Other motor damage to General liability liability and transport suretyship insurance property insurance insurance insurance insurance insurance Workers' compensation insurance C0010 C0020 C0030 C0040 C0050 C0060 C0070 C0080 C0090 C0100 C0110 C0120 C0130 C0140 C0150 C0160 C0200 Premiums written Gross Direct Business R , , , , ,1 Gross Proportional reinsurance R0120 accepted Gross Nonproportional reinsurance R0130 accepted Reinsurers' share R , , ,73 Net R , , , , ,36 Premiums earned Gross Direct Business R , , , , ,99 Gross Proportional reinsurance R0220 accepted Gross Nonproportional reinsurance accepted R0230 R0240 Reinsurers' share , , ,88 Net R , , , , ,11 Claims incurred Gross Direct R0310 Business , , , , ,31 Gross Proportional R0320 reinsurance accepted Gross Nonproportional R0330 reinsurance accepted R0340 Reinsurers' share , , , ,17 Net R , , , , ,14 Changes in other technical provisions Gross Direct R0410 Business , , , , ,19 Gross Proportional R0420 reinsurance accepted Gross Nonproportional R0430 reinsurance accepted R0440 Reinsurers' share , , , ,61 Net R , , , , ,42 R0550 Expenses incurred 59745, , , ,22 Other expenses R1200 Total expenses R ,22 Legal expenses insurance Assistance Miscellaneous financial loss Line of Business for: accepted nonproportional reinsurance Health Casualty Marine, aviation, transport Property Total

43 S Premiums, claims and expenses by country S S S Z Axis: Z Axis: Z Axis: VG/Statutory accounts VG/Statutory accounts VG/Statutory accounts DI/Year to Date DI/Year to Date DI/Year to Date X Axis: LG/All members Country R0010 Home Country nonlife obligations Top 5 countries (by amount of gross premiums written) nonlife obligations Total Top 5 and home country nonlife obligati Home country Country (by amount of gross premiums written) nonlife obligations Total Top 5 and home country C0080 C0090 C0140 Premiums written Gross Direct Business R , ,1 Gross Proportional reinsurance accepted R Gross Nonproportional reinsurance R Reinsurers' share R , ,73 Net R , ,36 Premiums earned Gross Direct Business R Gross Proportional reinsurance accepted R accepted R Reinsurers' share R , ,88 Net R , ,11 Claims incurred Gross Direct Business R , ,31 Gross Proportional reinsurance accepted R Gross Nonproportional reinsurance R Reinsurers' share R , ,17 Net R , ,14 Changes in other technical provisions Gross Direct Business R , ,19 Gross Proportional Nonproportional reinsurance reinsurance accepted R accepted R Reinsurers' share R , ,61 Net R , ,423 Expenses incurred R , ,22 Other expenses R Total expenses R ,22 Telefónica Insurance Solvency Financial Condition Report 1

44 S NonLife Technical Provisions S NonLife Technical Provisions Direct business and accepted proportional reinsurance Medical expense insurance Income protection insurance Workers' compensation insurance Motor vehicle liability insurance Other motor insurance Marine, aviation and transport insurance Fire and other damage to property insurance General liability insurance Credit and suretyship insurance Legal expenses insurance Assistance Miscellaneous financial loss C0020 C0030 C0040 C0050 C0060 C0070 C0080 C0090 C0100 C0110 C0120 C0130 Technical provisions calculated as a whole R Total Recoverables from reinsurance/spv and Finite R Technical provisions calculated as a sum of BE and RM Best estimate Premium provisions Gross R , , ,43 Total recoverable from reinsurance/spv and Fini R , ,647 Net Best Estimate of Premium Provisions R , , ,784 Claims provisions Gross R , , , ,71 Total recoverable from reinsurance/spv and Fini R , , ,51 Net Best Estimate of Claims Provisions R , , , ,2082 Total Best estimate gross R , , , ,14 Total Best estimate net R , , , ,992 Risk margin R , , , ,2826 Amount of the transitional on Technical Provisions Technical Provisions calculated as a whole R Best estimate R Risk margin R Technical provisions total Technical provisions total R , , , ,43 Recoverable from reinsurance contract/spv and Fin R , , ,15 Technical provisions minus recoverables from reins R , , , ,275 Telefónica Insurance Solvency Financial Condition Report 2

45 Nonproportional health reinsurance Accepted nonproportional reinsurance Nonproportional casualty reinsurance Nonproportional marine, aviation and transport reinsurance Nonproportional property reinsurance Total NonLife obligation C0140 C0150 C0160 C0170 C0180 Technical provisions calculated as a whole R Total Recoverables from reinsurance/spv and Finite R Technical provisions calculated as a sum of BE and RM Best estimate Premium provisions Gross R ,98 Total recoverable from reinsurance/spv and Fini R ,12 Net Best Estimate of Premium Provisions R ,86 Claims provisions Gross R ,41 Total recoverable from reinsurance/spv and Fini R ,42 Net Best Estimate of Claims Provisions R ,99 Total Best estimate gross R ,39 Total Best estimate net R ,85 Risk margin R ,73 Amount of the transitional on Technical Provisions Technical Provisions calculated as a whole R0290 Best estimate R0300 Risk margin R0310 Technical provisions total Technical provisions total R ,12 Recoverable from reinsurance contract/spv and Fin R ,54 Technical provisions minus recoverables from reins R ,58 Telefónica Insurance Solvency Financial Condition Report 3

46 S Nonlife insurance claims S Z Axis: TA/Noncumulative VG/Solvency II Metric: Monetary BC/Claims paid BL/Nonlife and Health nonslt Accident year / AX/All memberunderwriting year Z0020 Accident year [AY] Gross Claims Paid (noncumulative) Development year (absolute amount). Total NonLife Business & + C0010 C0020 C0030 C0040 C0050 C0060 C0070 C0080 C0090 C0100 C0110 Prior R N9 R , , , , , N8 R , , , , , , , N7 R , , , , , , ,35 N6 R , , , , , ,67 N5 R , , , , N4 R , , , ,96 N3 R , , , ,32 N2 R ,75 N1 R ,82 N R ,81 Telefónica Insurance Solvency Financial Condition Report 4

47 S Z Axis: VG/Solvency II Metric: Monetary BC/Claims paid BL/Nonlife and Health nonslt Accident year / AX/All me Underwriting year Z0020 Accident year [AY] S Z Axis: VG/Solvency II Metric: Monetary DD/Undiscounted BC/Liability LB/Claim provisions [other than local GAAP specific] BL/Nonlife and Health nonslt AX/All Accident year / members Underwriting year Z0020 Accident year [AY] Gross Claims Paid (noncumulative) Current year, sum of years (cumulative). Total NonLife Business Gross undiscounted Best Estimate Claims Provisions Development year (absolute amount). Total NonLife Business In Current year Sum of years (cumulative) & + C0170 C0180 C0200 C0210 C0220 C0230 C0240 C0250 C0260 C0270 C0280 C0290 C0300 Prior R ,67 Prior R ,9 N9 R ,555 N9 R ,39 0 N8 R ,33 N8 R , ,2 N7 R , ,78 N7 R , N6 R , ,5 N6 R , ,09 N5 R ,90 N5 R , ,13 N4 R , ,42 N4 R ,56 N3 R , ,00 N3 R , ,76 N2 R ,75 N2 R , ,33 N1 R ,82 N1 R ,55 N R , ,81 N R ,83 Telefónica Insurance Solvency Financial Condition Report 5

48 S Z Axis: VG/Solvency II Metric: Monetary DD/Discounted BC/Liability LB/Claim provisions [other than local GAAP specific] BL/Nonlife and Health nonslt AX/All Accident year / members Underwriting year Z0020 Accident year [AY] Gross discounted Best Estimate Claims Provisions Current year, sum of years (cumulative). Total NonLife Business Year end (discounted data) C0360 Prior R , N9 R N8 R ,8324 N7 R ,60048 N6 R ,6717 N5 R ,9975 N4 R0210 N3 R ,82 N2 R ,88 N1 R0240 N R ,87 Total R ,41 Telefónica Insurance Solvency Financial Condition Report 6

49 S Own funds S Z Axis: VG/Solvency II Own funds Total Tier 1 Tier 1 unrestricted restricte Tier 2 Tier 3 C0010 C0020 C0030 C0040 C0050 Basic own funds before deduction for participations in other financial sector as foreseen in article 68 of Delegated Regulation 2015/35 Ordinary share capital (gross of own shares) R , ,00 Share premium account related to ordinary share capital R , ,00 Initial funds, members' contributions or the equivalent basic own fund item for mutual and mutualtype undertakings R0040 Subordinated mutual member accounts R0050 Surplus funds R0070 Preference shares R0090 Share premium account related to preference shares R0110 Reconciliation reserve R , ,35 Subordinated liabilities R0140 An amount equal to the value of net deferred tax assets R0160 Other own fund items approved by the supervisory authority as basic own funds not specified above R0180 Own funds from the financial statements that should not be represented by the reconciliation reserve and do not meet the criteria to be classified as Solvency II own funds Own funds from the financial statements that should not be represented by the reconciliation reserve and do not meet the R0220 criteria to be classified as Solvency II own funds Deductions Deductions for participations in financial and credit institutions R0230 Total basic own funds after deductions R , ,35 Telefónica Insurance Solvency Financial Condition Report 7

50 Total Tier 1 unrestricted Ancillary own funds Unpaid and uncalled ordinary share capital callable on demand R0300 Unpaid and uncalled initial funds, members' contributions or the equivalent basic own fund item for mutual and mutual type R0310 undertakings, callable on demand Unpaid and uncalled preference shares callable on demand R0320 A legally binding commitment to subscribe and pay for subordinated liabilities on demand R0330 Letters of credit and guarantees under Article 96(2) of the Directive 2009/138/EC R0340 Letters of credit and guarantees other than under Article 96(2) of the Directive 2009/138/EC R0350 Supplementary members calls under first subparagraph of Article 96(3) of the Directive 2009/138/EC R0360 Supplementary members calls other than under first subparagraph of Article 96(3) of the Directive 2009/138/EC R0370 Other ancillary own funds R0390 Total ancillary own funds R0400 Available and eligible own funds Total available own funds to meet the SCR R , ,35 Total available own funds to meet the MCR R , ,35 Total eligible own funds to meet the SCR R , ,35 Total eligible own funds to meet the MCR R , ,35 SCR R ,59 MCR R ,76 Ratio of Eligible own funds to SCR R0620 1,44 Ratio of Eligible own funds to MCR R0640 5,33 Tier 1 restricte Tier 2 Tier 3 Telefónica Insurance Solvency Financial Condition Report 8

51 S Z Axis: VG/Solvency II Reconciliation reserve C0060 Reconciliation reserve Excess of assets over liabilities R ,35 Own shares (held directly and indirectly) R0710 Foreseeable dividends, distributions and charges R0720 Other basic own fund items R ,00 Adjustment for restricted own fund items in respect of matching a R0740 Reconciliation reserve R ,35 Expected profits Expected profits included in future premiums (EPIFP) Life busine R0770 Expected profits included in future premiums (EPIFP) Nonlife bu R0780 Total Expected profits included in future premiums (EPIFP) R0790 Telefónica Insurance Solvency Financial Condition Report 9

52 S Solvency Capital Requirement for undertakings on Standard Formula S Basic Solvency Capital Requirement Gross solvency capital requirement C0110 Market risk R ,94 Counterparty default risk R ,87 Life underwriting risk R0030 Health underwriting risk R0040 Nonlife underwriting risk R ,68 Diversification R ,95 Intangible asset risk R0070 Basic Solvency Capital Requiremen R ,54 Simplific ations C0120 Telefónica Insurance Solvency Financial Condition Report 10

53 S Calculation of Solvency Capital Requirement Value C0100 Operational risk R ,60 Lossabsorbing capacity of technical provisions R0140 Lossabsorbing capacity of deferred taxes R ,55 Capital requirement for business o R0160 Solvency Capital Requirement ,59 excluding capital addon R0200 Capital addon already set R0210 Solvency capital requirement R ,59 Other information on SCR Capital requirement for duration R0400 Total amount of Notional Solven R0410 Total amount of Notional Solven R0420 Total amount of Notional Solven R0430 Diversification effects due to RFF nscr aggregation for article 304 R0440 Telefónica Insurance Solvency Financial Condition Report 11

54 S Minimum Capital Requirement Only life or only nonlife insurance or reinsurance activity S Linear formula component for nonlife insurance and reinsurance obligations MCR components C0010 MCR NL Result R ,76 S Z Axis: VG/Solvency II Background information Background information Net (of reinsurance/spv) best estimate and TP calculated as a C0020 Net (of reinsurance) written premiums in the last 12 months C0030 Medical expense insurance and proportional reinsurance R0020 Income protection insurance and proportional reinsurance R0030 Workers' compensation insurance and proportional reinsurance R0040 Motor vehicle liability insurance and proportional reinsurance R , ,65 Other motor insurance and proportional reinsurance R0060 Marine, aviation and transport insurance and proportional reinsurance R0070 Fire and other damage to property insurance and proportional reinsurance R , ,63 General liability insurance and proportional reinsurance R , ,18 Credit and suretyship insurance and proportional reinsurance R0100 Legal expenses insurance and proportional reinsurance R0110 Assistance and proportional reinsurance R0120 Miscellaneous financial loss insurance and proportional reinsurance R , ,27 Nonproportional health reinsurance R0140 Nonproportional casualty reinsurance R0150 Nonproportional marine, aviation and transport reinsurance R0160 Nonproportional property reinsurance R0170 Telefónica Insurance Solvency Financial Condition Report 12

55 S Z Axis: VG/Solvency II Overall MCR calculation C0070 Linear MCR R ,76 SCR R ,59 MCR cap R ,21 MCR floor R ,90 Combined MCR R ,76 Absolute floor of the MCR R ,00 Minimum Capital Requirement R ,76 Telefónica Insurance Solvency Financial Condition Report 13