A magneto-resistive effect element (MR element) has a first shield layer; a second shield layer; an inner shield layer that is positioned between the first shield layer and the second shield layer, and that makes contact with the first shield layer and faces the air bearing surface (ABS); and a multilayer film that is positioned between the first shield layer and the second shield layer. The multilayer film has a free layer; a first pinned layer; a nonmagnetic spacer layer; a second pinned layer that fixes the magnetization direction of the first pinned layer; and an antiferromagnetic layer that is exchange-coupled with the second pinned layer. The antiferromagnetic layer faces the back surface of the inner shield layer viewed from the ABS. The MR element has an insulating layer positioned between the antiferromagnetic layer and the inner shield layer.