We present the Management Report and Sustainability Report that reflect information related to Mutua Universal’s financial year 2023, my first year as President of the company. It was a year in which the global political, economic, and social situation proved to be both unstable and resilient.

Four years after the start of the pandemic, the global economy is still trying to correct the mismatch between supply and demand and the resulting inflationary trajectory. This arduous process of reconstruction has been slowed by the devastating human and economic consequences of the Russia-Ukraine and Israel-Gaza conflicts, the effects of which will shape the future for years to come.

This global geopolitical uncertainty could extend tight monetary conditions, as warned by the International Monetary Fund (IMF). It impacts escalating commodity prices, energy costs, and trade routes, leading to increased production expenses for companies and hindering countries’ growth, thereby prolonging macroeconomic instability in the medium term.

Despite the complex economic and geopolitical environment, the global economy has demonstrated resilience. Inflation has decreased within central banks’ specified targets, and risks are balancing to support gradual, albeit below-average, growth. Remarkably, the eurozone is managing to avoid recession, even considering the delicate economic conditions of key trading partners like Germany, France, and Italy.

In 2023, Spain’s economy moderated its growth but maintained a certain dynamism. According to data from the National Statistics Institute (INE), Gross Domestic Product (GDP) grew by 2.5% in 2023 on the whole, exceeding all expectations and positioning Spain as the leader in economic growth among the main eurozone countries. Notably, there was a 0.6% increase in GDP during the last quarter of the year. However, this falls significantly short of the annual figure of 5.8% recorded in 2022, and forecasts suggest that this trend will moderate in the coming years.

According to experts, the primary drivers of this growth include resilient household consumption, which has withstood inflation and interest rate hikes set by the European Central Bank. Additionally, the foreign sector has experienced a notable surge in exports. Finally, the labour market has performed well, with implemented measures favouring structural changes that led to the creation of 780,000 jobs in 2023, as reported by the Labour Force Survey.

However, there is still no solution for the decline in productivity, an issue that remains largely overlooked both politically and socially. Additionally, absenteeism has been on the rise, reaching 7.2%, as reported by The Adecco Group Institute, resulting in costs for companies and society. Furthermore, high unemployment rates (11.7% by the end of 2023) persist, and this issue is equally, if not more, structural than absenteeism.

Public debt remains a significant concern. According to the Bank of Spain, by the end of 2023, public debt reached 107.7% of GDP, positioning Spain among the countries with the highest debt worldwide. Notably, Social Security, the institution we rely on and collaborate with, recorded a sharp increase in its debt balance (9.4%), reaching a record 116,173 million euros. The flip side is that the rise in social security contributions due to the newly Government-approved Intergenerational Equity Mechanism has directly impacted salaries and the costs borne by companies for their employees. As a result, the Social Security Reserve Fund, commonly referred to as the pension fund, ended the year with over 5 billion euros.

Our mission is to protect over 1.4 million companies and nearly 19 million workers. It also administers the payment of economic benefits for temporary incapacity resulting from common contingencies. In 2023, these contingencies were associated with over 8 million sick leaves due to illnesses and non-occupational accidents – the primary cause of absenteeism. Unfortunately, we have limited flexibility beyond benefit payments, despite the sector’s ongoing efforts to manage sick leaves and discharges. There remains a historic demand for financing aligned with our needs. The result is chronic underfunding, yet it doesn’t hinder our ongoing allocation of new benefits and services. We maintain our demonstrated efficiency in management, aligned with the public nature of our functions and the resources we oversee. It remains a challenging situation to comprehend.

Regarding Mutua Universal, our sphere of activity, we concluded 2023 with a favourable management balance sheet. Our income from social security contributions amounted to 1.669 billion euros, representing an 11.8% increase compared to the previous year. Additionally, we achieved a positive result for the year, totalling 20.83 million euros. Importantly, we maintained our commitment to zero debt, and there were no adjustments made by the General Social Security Controller. This evidence certifies our sound management, grounded in ethical values, integrity, and good governance. It ensures the institution’s solvency and sustainability, resulting in a return of 21.24 million euros to the system. Our commitment to social responsibility aligns with our goal of contributing to the welfare state’s sustainability.

I extend my heartfelt gratitude to the entire team of Mutua Universal professionals whose unwavering dedication and professionalism enable our achievements. As an organisation, we remain committed to supporting them and equipping them with cutting-edge tools to tackle the challenges in healthcare and prevention for member companies and protected workers. Our legacy of managing services and benefits with rigour and excellence continues, as it always has.

“Our sound management is grounded in ethical values, integrity, and good governance. It ensures the institution’s solvency and sustainability, resulting in a return of 21.24 million euros to the system”

I also thank all member companies, protected and affiliated workers, and partner consultancies for choosing us. Together, we will persistently contribute to the productivity, competitiveness, and sustainability of companies and, consequently, society.

I extend my gratitude to the CEO of Mutua Universal, Juan Güell, for steering the company’s strategy while remaining steadfast in its purpose. I also appreciate the Board of Directors and the Audit and Compliance Committee for upholding transparency in management and driving continuous improvement. Lastly, my thanks go to the individuals and companies involved in the Special Benefits Committee and the Control and Monitoring Committee for their active participation.

Also to the President and CEO of the Asociación de Mutuas de Accidentes de Trabajo (AMAT), the employers’ association of mutual insurance companies, and to the public administration with which we work.

A special acknowledgment is due to Juan Echevarría Puig, who led Mutua Universal for 18 years until December 2022. As a long-time colleague on the Board of Directors, he has been officially ratified as the Honorary President of the mutual insurance company by the Directorate General for the Organisation of Social Security.

I extend my gratitude for his unwavering dedication and excellent service to Mutua Universal, and I offer my warm congratulations on his appointment. Having you by our side is truly inspiring.

Thank you very much.