Q- EARNINGS RESULTS 1Q18
19 Abril 2018 - 4:33PM
BMV General Information
MEXICO CITY, APRIL 19TH, 2018 - QULITAS CONTROLADORA, S.A.B. DE
C.V. ("QULITAS", "Q", OR "THE COMPANY") (BMV: Q*), ANNOUNCES ITS
UNAUDITED FINANCIAL RESULTS FOR THE FIRST QUARTER ENDED MARCH 31ST,
2018.
FIGURES IN THIS DOCUMENT ARE STATED IN MILLIONS OF MEXICAN PESOS
EXCEPT WHEN OTHERWISE SPECIFIED ANDMAY VARY DUE TO ROUNDING.
1Q18 HIGHLIGHTS:
OPERATING FIGURES- DURING THE QUARTER THE COMPANY OPENED 7 NEW ODQS
(QULITAS DEVELOPMENT OFFICES) IN MEXICO.- INSURED VEHICLES
INCREASED 1.9% IN THE QUARTER, REACHING A TOTAL OF 3.9 MILLION
UNITS. IN THE FIRST THREE MONTHS OF THE YEAR 73,949 VEHICLES WERE
ADDED TO THE PORTFOLIO.
- AS OF DECEMBER (LATEST DATA AVAILABLE), QULITAS KEPT ITS LEADING
POSITION IN THE MEXICAN AUTOMOBILE INSURANCE INDUSTRY WITH 31.3%
MARKET SHARE.INCOME STATEMENT AND BALANCE SHEET
- WRITTEN PREMIUMS DECREASED 2.6% IN THE QUARTER, DUE TO THE
SLOWDOWN IN NEW CAR SALES IN MEXICO AND THE DROP IN QULITAS
INSURANCE COMPANY (QIC) SALES OF 19.2%. TOTAL WRITTEN PREMIUMS
REACHED $9,046 MILLION.
- EARNED PREMIUMS HAD A 14.4% GROWTH, THIS RELATED TO THE AMOUNT OF
REVENUE RECORDED IN THE CURRENT PERIOD BUT COMES FROM MULTIANNUAL
POLICIES ISSUED IN PAST YEARS. EARNED PREMIUMS AMOUNTED TO $7,675
MILLION.
- CLAIMS COST INCREASED 8.9% DURING THE QUARTER. THIS INCREASE IS
LOWER THAN EARNED PREMIUMS' GROWTH BECAUSE, EVEN THOUGH CAR ROBBERY
IS STILL AFFECTING CLAIMS COST, IN THIS FIRST THREE MONTHS OF THE
YEAR THERE WERENO WEATHER FACTORS THAT IMPACTED THIS ITEM. IN 1Q18
QULITAS ASSISTED 362,357 CLAIMS, 922 LESS EVENTS THAN IN THE SAME
PERIOD OF LAST YEAR.- IN THE QUARTER, ACQUISITION COST DECREASED
1.3% AND OPERATING EXPENSES INCREASED 137.2%, BOTH VARIATIONS
CAUSED BY THE SLOWDOWN IN WRITTEN PREMIUMS, AS THIS RESULTED IN
LOWER COMMISSIONS PAID TO FINANCIAL INSTITUTIONS AND LESS POLICY
FEES TO REDUCE OPERATION COSTS.- THE COMPANY REGISTERED AN
UNDERWRITING MARGIN (UNDERWRITING RESULT / EARNED PREMIUMS) OF 4.9%
AND A COMBINED RATIO OF 90.7%. THEREFORE, UNDERWRITING RESULT
AMOUNTED TO $379 MILLION, FIGURE THAT COMPARES TO THE $20 MILLION
REGISTERED LAST YEAR.
- INTEGRAL FINANCING RESULT TOTALED $490 MILLION IN THE QUARTER, AN
INCREASE OF 39.8% AS A RESULT OF AN ASSERTIVE INVESTMENTS PORTFOLIO
MANAGEMENT, THE HIKE OF 25 BASIS POINTS IN THE REFERENCE RATE OF
BANXICO IN FEBRUARY IN MEXICO, AND AN INCREASE OF $2,325 MILLION IN
THE FLOAT. THE CASH OR FINANCIAL ASSETS PER SHARE REACHED $62.85
PESOS.
- AS A RESULTOF THE UNDERWRITING AND FINANCIAL PROFITABILITY, NET
INCOME FOR THE QUARTER WAS $590 MILLION, AN INCREASE OF 112.4% WHEN
COMPARED TO THE FIRST THREE MONTHS OF 2017. WITH THIS RESULT, THE
COMPANY REGISTERED A LTM ROE OF 32.9%.
- Q* STOCK HAD A PRICEINCREASE OF 37.9% IN THE QUARTER. THE DAILY
AVERAGE TRADED VOLUME WAS 806 THOUSAND SHARES AND $1.9 MILLION
USD.
- THE COMPANY IMPROVED 7 PLACES IN THE MARKETABILITY INDEX OF THE
MEXICAN STOCK EXCHANGE. IT MOVED FROM THE 54TH PLACE IN DECEMBER
2017 TO THE 47TH AS OF MARCH 2018.INSURED VEHICLES
INSURED VEHICLES INCREASED 4.6% WHENCOMPARED TO MARCH 2017,
REACHING A TOTAL OF 3,892,501 UNITS IN THE PORTFOLIO. DURING THE
QUARTER, THE COMPANY INSURED 73,959 ADDITIONAL UNITS, A QUARTERLY
INCREASE OF 1.9%.
THE LOWER GROWTH IN INSURED VEHICLES MOSTLY CORRESPONDS TO THE
DECELERATION OF NEW CAR SALES IN MEXICO. ACCORDING TO THE MEXICAN
ASSOCIATION OF AUTOMOTIVE DEALERS (AMDA), NEW CAR SALES DECREASED
10.8% IN THE QUARTER, WITH SALES OF 337 THOUSAND ZERO KILOMETERS
VEHICLES, 41 THOUSAND LESS UNITS THAN IN 2017. LIKEWISE, QULITAS
INSURANCE COMPANY (QIC) PORTFOLIODECREASED IN 702 UNITS DURING THE
QUARTER. IN THIS SUBSIDIARY, THE COMPANY IS LOOKING FOR A MORE
MODERATE GROWTH AND THEREFORE MAINTAIN CAPITAL REQUIREMENTS INAN
OPTIMAL LEVEL. WRITTEN PREMIUMS
DURING THE QUARTER WRITTEN PREMIUMS TOTALED $9,046 MILLION, 2.6%
DECREASE WHEN COMPARED TO THE AMOUNT RECORDED IN 1Q17.
DROP IN SALES IS RELATED TO THE SLUMP IN THE FINANCIAL INSTITUTIONS
SEGMENT AND SALES IN PESOS OF THE FOREIGN SUBSIDIARIES.
INDIVIDUAL AND FLEETS SEGMENTS CONTINUED TO SHOW A DOUBLE DIGIT
GROWTH. SALES THROUGH THESE SEGMENTS IMPLY LOWER ACQUISITION COSTS
THAN THE FINANCIAL INSTITUTIONS SEGMENT AND MOST OF THE POLICIES
ARE ANNUAL PRODUCTS.IN QULITAS MXICO WRITTEN PREMIUMS FELL 2.0%,
THIS SUBSIDIARY CONTINUES TO REPRESENT 95% OF TOTAL SALES.
SUBSIDIARIES LOCATED IN CENTRAL AMERICA KEPT GROWING IN US DOLLARS;
5.4% IN COSTA RICA AND 7.2% IN EL SALVADOR.
IN THE US, QULITAS INSURANCE COMPANY (QIC) SALES DECLINE 19.2% AS A
CONSEQUENCEOF THE STRATEGY TO MODERATE THE EXPANSION AND TO CONTROL
CAPITAL REQUIREMENTS. THE COMPANY IS AIMING TO KEEP THESE
REQUIREMENTS IN AN OPTIMAL LEVEL. QIC SALES ARE ON PAR WITH THE
ANNUAL BUDGET.
CEDED PREMIUMS, EARNED PREMIUMS AND REINSURANCE
THE COMPANYREGISTERED CEDED PREMIUMS OF $164 MILLION DURING THE
QUARTER. IT IS WORTH MENTIONING THAT QULITAS HOLDS A CATASTROPHIC
REINSURANCE AGREEMENT FOR ITS SUBSIDIARIES.
EARNED PREMIUMS
EARNED PREMIUMS FORTHE QUARTER TOTALED $7,675 MILLION, A GROWTH OF
14.4% WHEN COMPARED TO THE $6,706 MILLION RECORDED IN 1Q17.THE RISE
IN EARNED PREMIUMS IS RELATED TO THE AMOUNT OF REVENUE RECORDED IN
THE CURRENT PERIOD BUT COMESFROM MULTIANNUAL POLICIES ISSUED IN
PAST YEARS. NET ACQUISITION COST
NET ACQUISITION COST FOR THE QUARTER AMOUNTED TO $2,022 MILLION, A
DECREASE OF 1.3% WHEN COMPARED TO THE $2,049 MILLION RECORDED IN
1Q17.
THE CONTRACTION IN THIS COST IS MAINLY EXPLAINED BY LOWER
COMMISSIONS AND COMPENSATIONS PAID TO FINANCIAL INSTITUTIONS DUE TO
A SLOWDOWN OF SALES IN THIS SEGMENT.THE ACQUISITION RATIO FOR THE
QUARTER WAS 22.8% AND COMPARES TO THE 22.1% REGISTERED THE SAME
PERIOD LAST YEAR.NET CLAIMS COST
NET CLAIMS COST REACHED $4,859 MILLION IN THE QUARTER, AN INCREASE
OF 8.9% WHEN COMPARED TO THE FIRST QUARTER OF 2017. DURING THE
QUARTER, THE COMPANY ASSISTED 362,357 CLAIMS, 992 LESS EVENTS THAN
IN THE SAME PERIOD OF LAST YEAR. THROUGHOUT THE QUARTER THERE WERE
NO WEATHER FACTOR AS RAINS, HAIL OR HURRICANES THAT AFFECTED CLAIMS
COST. NEVERTHELESS, CAR ROBBERYTO INSURANCE COMPANIES IN MEXICO HAD
A HIKE OF 3% ACCORDING TO THE COORDINATOR OFFICE OF INSURED RISKS
(OFICINA COORDINADORA DE RIESGOS ASEGURADOS, OCRA, AS PER ITS
ACRONYM IN SPANISH).
AGREEMENTS WITH MEDICAL PROVIDERS AND HAVING AN IN-HOUSE
LEGALSTRUCTURE HAVE PROVEN TO BE KEY FOR COST CONTROLS. THIS
MEASURES HAVE HELPED TO REDUCE AVERAGE COST PER CLAIM FOR THE
MEDICAL AND LEGAL EXPENSES COVERAGES DESPITE INFLATION IN MXICO
REMAINS ABOVE 5%.FOR, COLLISION AND THIRD PARTY LIABILITY, THE MOST
IMPORTANT COVERAGES WITHIN THE CLAIMS COST, THE NUMBER OF CLAIMS
ARE DECREASING BUT AVERAGE COSTS IS STILL INCREASING ABOVE
INFLATION.
WITHIN COLLISION, THE LARGEST EXPENSE IS SPARE PARTS, AND THIS
PRODUCT IS A DOLLARIZED COMMODITY. ALTHOUGH IN THE QUARTER THE US
DOLLAR HAD A DEPRECIATION OF 6.89% AGAINST THE MEXICAN PESO, THE
PRICE OF SPARE PARTS HAS NOT YET REFLECTED THIS ADJUSTMENT.
TO IMPROVE SERVICE AND TO SHORTEN RESPONSE TIME, THE COMPANY
IMPLEMENTED CHATBOTS, AN ARTIFICIAL INTELLIGENCE PROGRAM THAT
RESPONDS TO CUSTOMER CONCERNS THROUGH TEXT MESSAGES ON QULITAS'
WEBSITE.
CLAIMS RATIOFOR THE QUARTER WAS 63.3%, AGAINST THE 66.5% RECORDED
DURING 1Q11. THE RATIO IMPROVED 322 BASIS POINTS.
OPERATING EXPENSES
OPERATING EXPENSES HAD AN INCREASE OF 137.2%, TOTALING $416
MILLION. THIS IS MAINLY EXPLAINED BY HIGHER ADMINISTRATIVE
EXPENSES, LESS REVENUES FROM POLICY FEES DUE TO LOWER PREMIUMS
SALES AND THE EMPLOYEE PROFIT SHARING.
OPERATING RATIO FOR THE QUARTER WAS 4.6% AND COMPARES TO 1.9%
REPORTED SAME PERIOD OF LAST YEAR.
DEPRECIATION AND AMORTIZATIONREGISTERED DURING THE QUARTER
INCREASED 33.8%, FOR A TOTAL OF $91 MILLION.
UNDERWRITING RESULTUNDERWRITING PROFIT FOR THE QUARTER WAS $379
MILLION, FIGURE THAT FAVORABLY COMPARES TO THE $20 MILLION
REGISTEREDIN 1Q17. ALSO, THE COMBINED RATIO INCREASED FROM 90.5% TO
90.7%. HOWEVER, THE UNDERWRITING MARGIN (UNDERWRITING RESULT
/EARNED PREMIUMS) IMPROVED FROM 0.3% TO 4.9%.
INTEGRAL FINANCING RESULT
DURING THE 1Q18 INTEGRAL FINANCING RESULT REACHED $490 MILLION, AN
INCREASE OF 39.8% WHEN COMPARED TO THE $350 MILLION REGISTERED IN
THE FIRST QUARTER OF 2017. THIS RESULT DERIVES FORM A DISCIPLINED
INVESTMENTS PORTFOLIO MANAGEMENT, THE REVENUES THAT COME FROM THE
PREMIUMS FINANCIAL SURCHARGES AND THE INCREASE OF $2,325 MILLION IN
THE FLOAT OR FINANCIAL ASSETS DURING THE QUARTER.
IN THE QUARTER, THE DEBT PORTFOLIO HAD A GOOD RETURN AS IT IS
MAINLY COMPOSED BY LIQUID AND SHORT TERM INSTRUMENTS, AND
BENEFITTED FROMTHE 25 BASIS POINTS HIKE IN MXICO'S INTEREST RATE IN
FEBRUARY.
THE EQUITY PORTFOLIO HAS SHOWED A DEFENSIVE POSITION AS IT HAD A
POSITIVE RETURN WHILE THE MEXBOL OR IPC INDEX HAD A NEGATIVE
PERFORMANCE. DURING THE QUARTER THE ALLOCATION IN EQUITIES MOVED
FROM 18% OF THE TOTAL PORTFOLIO TO 17%. THE STRATEGY FOR THIS TYPE
OF INSTRUMENTS REMAINS FOCUSED IN COMPANIES THAT GENERATE VALUE IN
THE LONG RUN.THE RETURN ON INVESTMENT FOR THE QUARTER WAS 5.6%,
FIGURE LOWER THAN BANXICO'S REFERENCE INTEREST RATE OF 7.5%.17% OF
THE PORTFOLIO IS INVESTED IN EQUITIES; FIGURE LOWER THAN THE 35% OF
THE ESTABLISHED INTERNAL LIMIT.TAXES
DURING THE QUARTER THE COMPANY RECORDED $278 MILLION IN TAXES,
FIGURE 200.8% HIGHER WHEN COMPARED TO THE SAME PERIOD IN 2017.
NET RESULT
AS A CONSEQUENCE OF THE UNDERWRITING AND FINANCIAL PROFITABILITY OF
THE QUARTER, NET RESULT AMOUNTED TO $590 MILLION FROM JANUARY TO
MARCH, AN INCREASE OF 112.7% AND ALTM ROE OF 32.9%. THIS RETURN
COMES FROM AN OPERATING ROE OF 12.1% AND A FINANCIAL ROE OF
20.8%.
INVESTMENTSINVESTMENTS AMOUNTED TO $28,727 MILLION, AN INCREASE OF
24.8%. THIS ITEM COMPRISES: SECURITIES, OVERNIGHT, CASH AND CASH
EQUIVALENTS, LOANS PORTFOLIO AND PROPERTY.
TECHNICAL RESERVESTECHNICAL RESERVES REACHED $34,691 MILLION, AN
INCREASE OF 16.8% AS A CONSEQUENCE OF A 12.4% HIKE IN UNEARNED
PREMIUMS AND 30.0% IN THE RESERVE FOR OUTSTANDING OBLIGATIONS.
SOLVENCYQULITAS RECORDED A SOLVENCY MARGIN OF $4,065 MILLION, WHICH
REPRESENTS A SOLVENCY RATIO OF 2.15.SHARE BUYBACK PROGRAM
THE INVESTED AMOUNT IN REPURCHASED SHARES AS OF MARCH 2018 WAS $611
MILLION. NO SHARES FROM THE BUYBACK PROGRAM HAVE BEEN CANCELED. THE
DESIGNATED AMOUNT FOR THE SHARE BUYBACK PROGRAM IS $600 MILLION AND
IT CAN REACH A MAXIMUM OF $650 MILLION CONSIDERING THE SURPLUS
DERIVED FROM ITS OPERATION.
PERFORMANCE OF THE STOCK (Q*)THE COMPANY MOVED FROM THE 54TH PLACE
IN DECEMBER 2017 TO THE 47TH AS OF MARCH 2018 IN THE MARKETABILITY
INDEX OF THE MEXICAN STOCK EXCHANGE (BMV).
SUSTAINABILITY
QULITAS IS AWARE THAT FOR KEEPING BUSINESS CONTINUITY,IT HAS TO
FOCUS ON BOTH, THE FINANCIAL AND THE NON-FINANCIAL DIMENSION OF THE
COMPANY, AND ALSO TO FOLLOW-UP ITS SUSTAINABILITY MODEL AND ITS
COMMITMENTS WITHSTAKEHOLDERS. DURING THE QUARTER THE COMPANY RAN
SOME CAMPAIGNS ADDRESSING DIFFERENT STAKEHOLDERS:"Q TRANSPARENCIA"
WAS LAUNCHED AS A NEW WHISTLEBLOWER CHANNEL TO REPORT ANOMALIES OR
ILLEGAL ACTIONS OBSERVED IN THE COMPANY. THE CONFIDENTIALITY OF THE
TOOL IS GUARANTEED AS IT IS OPERATED BY A THIRD PARTY, IT ALSO HAS
THE POSSIBILITY OF MAINTAINING ANONYMITY DURING THE COMPLAINT
PROCESS.ADDITIONALLY, THE USER CAN DIRECTLY REVISE THE STATUS OF
ITS CASE ON THE WEBSITE AND WILL RECEIVE ADVICE FROM A PROFESSIONAL
ON CORPORATE COMPLAINTS.THE TOPICS THAT MAY BE REPORTED THROUGH Q
TRANSPARENCIA ARE; FRAUD, ADULTERATION OR ROBBERY OF INFORMATION,
HARASSMENT, DISCRIMINATION OR MISTREATMENT, IMPROPER USE OF GOODS,
SERVICES OR INFORMATION AND ACTS OF CORRUPTION OR NON-TRANSPARENT
AGREEMENTS WITH SUPPLIERS/CUSTOMERS.
WITHIN THE ROAD SAFETY CAMPAIGN (CONDUCTA VIAL QULITAS), THE
COMPANY, UNIVERSUM AND CINEMA PARK MADE AN ALLIANCE TO PRESENT
"TOUR CAMINO A LA SEGURIDAD" (PATH TOSAFETY TOUR), A SHORT FILM
THAT IS PRESENTED IN CINEMAS TO RAISE AWARENESS AMONG MEXICAN
POPULATION ABOUT THE IMPORTANCE OF PREVENTION AND REDUCTION OF
ACCIDENTS.
THE COMPANY CONTINUED WITH ITS QULITAS DNA CAMPAIGN, "THE QULITAS'
VALUES THAT LIVE IN YOU"TO REINFORCE EMPLOYEES' KNOWLEDGE AND
COMPLIANCE OF THE CODE OF ETHICS AND CORPORATE VALUES.
Q CERTIFICATION PROGRAM TO ASSURE THAT EMPLOYEES ARE TRAINED IN
PERSONAL DATA PROTECTION, CODE OF ETHICS AND CONDUCT, MONEY
LAUNDERING PREVENTION AND CONFLICT OF INTEREST POLICY MATTERS.
AS PART OF THE HEALTH DAY PROGRAM FOR EMPLOYEES, IN THE
METROPOLITAN OFFICES IN MEXICO, EYE TESTS AND EXAMINATIONS WERE
CARRIED OUT. ALSO, EMPLOYEES WERE INVITED TO THE "WEIGHT LOSS
CHALLENGE" AS A VEHICLE TO IMPROVE THEIR HEALTH.GUIDANCE 2018
WRITTEN PREMIUMS GROWTH / 8 - 12%EARNED PREMIUMS GROWTH / 16 -
20%
RATIOSACQUISITION / 23 - 24%
CLAIMS / 68 - 69%OPERATING / 2 - 3%
COMBINED / 93 - 96%UNDERWRITING MARGIN (UNDERWRITING RESULT/ EARNED
PREMIUMS) / 1.5 - 2.5%
RETURN ON INVESTMENTS: ANNUAL AVERAGE OF BANXICO'S INTEREST RATE* +
320/350 MILLION PESOS OF PREMIUMS SURCHARGE
AVERAGE INVESTED ASSETS, FLOAT: $27,000 - $28,000 MILLION
* AS OF THE DATE OF THIS REPORT BANXICO'S INTEREST IS 7.50%.
NOTE: GUIDANCE MAY VARY DUE TO CHANGES IN MACROECONOMIC CONDITIONS
OF THE COUNTRIES IN WHICH QULITAS OPERATES.
WE INVITE YOU TO JOIN US IN OUR 1Q18 WEBCASTFRIDAY, APRIL 20TH,
9:00 AM MEXICO CITY TIME (10:00 AM EST)
HOSTED BY:WILFRIDO CASTILLO, HEAD OF INVESTOR RELATIONS
FOR THE WEBCAST PLEASE ENTER TO THE FOLLOWING
LINK:HTTP://QUALITAS.TRANSMISION.COM.MX/
TO PARTICIPATE BY TELEPHONE, PLEASE DIAL:MEXICO: 01 55 2881
4630
US & CANADA: +1 (855) 257-7489
UNITED KINGDOM: +44 (20) 8089-1873
THE REPLAY WILL BE AVAILABLE ON OUR WEBSITE AFTER THE EVENT
GLOSSARY OF TERMS AND DEFINITIONS
ACQUISITION COST: INCLUDES COMMISSIONS AND COMPENSATIONS PAID TO
AGENTS AS WELL AS FEES PAID TO FINANCIAL INSTITUTIONS FOR THE USE
OF THEIR FACILITIES (UOF).
ACQUISITION RATIO: ACQUISITION COST NET WRITTEN PREMIUMS
CAGR: COMPOUND ANNUAL GROWTH RATE = ((END OF PERIOD FIGURE /
BEGINNING OF PERIOD FIGURE) ^ (1/ NUMBER OF PERIODS))
COMBINED RATIO: ACQUISITION RATIO + OPERATING RATIO + CLAIMS
RATIO
CNSF: NATIONAL INSURANCE & BONDS COMMISSION, THE REGULATOR OF
THE INSURANCE SECTOR IN MEXICO.
FINANCIAL INSTITUTIONS: FINANCIAL BRANCH OF MAJOR AUTOMAKERS AND
FINANCIAL GROUPS THAT PROVIDE AUTOMOTIVE FINANCING.
CLAIMS COST: INCLUDES COSTS INCURRED IN THE PAYMENT OF CLAIMS:
THIRD PARTY LIABILITY, THEFT, REPAIR COSTS, AMONG OTHERS.
CLAIMS RATIO: CLAIMS COST NET EARNED PREMIUMS.
MULTI-ANNUAL POLICIES: POLICIES WITH A TERM GREATER THAN 12 MONTHS.
THEY ARE TYPICALLY ISSUED FOR THE AUTOMOBILES SOLD ON CREDIT.
NET EARNED PREMIUMS: WRITTEN PREMIUMS REGISTERED AS INCOME
THROUGHOUT THE DURATION OF A POLICY.NET WRITTEN PREMIUMS: WRITTEN
PREMIUMS LESS THE PORTION CEDED TO REINSURANCE. OPERATING EXPENSES:
INCLUDES EXPENSES INCURREDIN BY THE COMPANY IN ITS REGULAR
OPERATIONS.
OPERATING RATIO: OPERATING EXPENSES NET WRITTEN PREMIUMS
POLICIES' FEES: ADMINISTRATIVE FEE CHARGED WHEN THE POLICY IS
ISSUED AND RECORDED AS AN INCOME IN OPERATING EXPENSES.PREMIUM
DEBTOR: RECORDS THE PORTION OF SOLD POLICIES WHICH WILL BE PAID IN
INSTALLMENTS.PREMIUMS FINANCE CHARGE: FINANCIAL PENALTY IMPOSED TO
POLICYHOLDERS THAT CHOOSE TO PAY PREMIUMS IN
INSTALLMENTS.REGULATORY EQUITY REQUIREMENT: IS THE MINIMUM EQUITY
LEVEL THAT AN INSURANCE COMPANY SHOULD MAINTAIN, ACCORDING TO LEGAL
REQUIREMENTS.WRITTEN PREMIUMS: PREMIUMS CORRESPONDING TO POLICIES
UNDERWRITTEN.
Q CR: QULITAS COSTA RICAQ MX: QULITAS MEXICO
Q ES: QULITAS EL SALVADORQIC: QULITAS INSURANCE COMPANY
SOLVENCY MARGIN: STOCKHOLDERS' EQUITY - REGULATORY EQUITY
REQUIREMENT.
SOLVENCY MARGIN RATIO: SOLVENCY MARGIN REGULATORY EQUITY
REQUIREMENT.
ABOUT:
QULITAS (Q) IS THE LARGEST AUTO INSURANCE COMPANY IN MEXICO IN
TERMS OF MARKET SHARE, WITH OPERATIONS IN EL SALVADOR, COSTA RICA
AND USA. ITS SPECIALIZED BUSINESS MODEL, BASED EXCLUSIVELY IN AUTO
INSURANCE, HAS ALLOWED THE COMPANY TO PROVIDE TOP QUALITY SERVICE
UNDER THE LARGEST NETWORK IN THE COUNTRY. QULITAS IS LISTED ON THE
MEXICAN STOCK EXCHANGE (BMV) UNDER THE TICKER "Q" (BLOOMBERG: Q*:
MM).
- - - - - - - - -- - - - - - - - - - - - -
THIS DOCUMENT MAY INCLUDE FORWARD-LOOKING STATEMENTS THAT INVOLVE
RISKS AND UNCERTAINTIES. WORDS SUCH AS "ESTIMATE," "PROJECT,"
"PLAN," "BELIEVE," "EXPECT," "ANTICIPATE," "INTEND," AND SIMILAR
EXPRESSIONS MAY IDENTIFY SUCH FORWARD-LOOKING STATEMENTS. THE
COMPANY WANTS TO CAUTION READERS THAT ANY FORWARD-LOOKING STATEMENT
IN THIS DOCUMENT OR MADE BY THE COMPANY'S MANAGEMENT INVOLVE RISKS
AND UNCERTAINTIES THAT MAY CHANGE BASED ON VARIOUS IMPORTANT
FACTORS NOT UNDER THE COMPANY'S CONTROL. FORWARD-LOOKING STATEMENTS
RELATE TO THE COMPANY'S CURRENT SITUATION ONLY AS OF THEIR DATES OF
PUBLICATION.
INVESTOR RELATIONS CONTACTS:
MARIANA FERNNDEZMFERNANDEZ@QUALITAS.COM.MX
T: +52 (55) 1555-6103ANDREINA INCANDELA
AINCANDELA@QUALITAS.COM.MXT: +52 (55) 155-6104
MARA FERNANDA ESCOBARMFESCOBAR@QUALITAS.COM.MX
T: +52 (55) 155-6175