Qualitas Controladora S.a.b. De C.v. · BMV:Q
Qualitas Controladora S.a.b. De C.v — Q3 2016 Earnings Presentation
21 slides from Qualitas Controladora S.a.b. De C.v's earnings presentation
Slide 1: Corporate Presentation 3Q16
Corporate Presentation 3Q16 1
Slide 2: Business Fundamentals
Business Fundamentals Outstanding Service Specialization Top quality service Unique Business Model State of the art technology #1 auto insurance company in Mexico Nationwide network with 363 offices with 29.5% of market share Experienced management team Focus on service rather than brand
Slide 3: Business Model
Business Model Quálitas Service Offices Agents • Call center • Owned by specialized entrepeneurs • Agents are not exclusive • IT support • Independent decision-making • Agents look after the interests of • Product pricing • Compensation to office policyholders • Claims Infrastructure representatives
Slide 4: Network
Network 3,391,975 181 193 Insured Vehicles Service Offices ODQs 4,273 11,896 982 / 385 Employees Agents Claims Officers / Lawyers 1. Mexico 2. United States 3. El Salvador 4. Costa Rica 4
Slide 5: Insured Vehicles
Insured Vehicles *CAGR: 15.0% Business Line 3Q16 3Q15 ∆% Automobiles 2,323,333 1,852,566 25.4% Trucks 817,585 664,187 23.1% Tourists 91,805 89,231 2.9% Motorcycles 93,550 78,337 19.4% El Salvador 11,790 16,470 (28.4%) Costa Rica 41,006 22,731 80.4% USA 12,906 3,468 272.1% Insured Vehicles 3,391,975
Slide 6: Written Premiums
Written Premiums Sales and Financing of New Cars in Mexico Segment Premiums 3Q16 3Q15 3Q16 3Q15 ∆% (MM MXN) Breakdown Individual 1,201 900 33.4% 15.8% Fleets 1,740 1,282 35.7% 22.9% Financial Institutions 4,165 1,897 119.5% 54.8% Subsidiaries 363 189 92.0% 4.8% Other 129 153 (15.8%) 1.7% Total 7,598
Slide 7: Financial Highlights
Financial Highlights (MM MXN) 3Q16 3Q15 ∆% 9M16 9M15 ∆% Written Premium 7,598 4,421 71.8% 20,958 13,971 50.0% Net Written Premium 7,598 4,421 71.8% 20,855 13,971 49.3% Net Increase of Unearned Premiums Reserve 1,532 224 NA 3,883 1,555 149.7% Earned Premium 6,066 4,197 44.5% 16,972 12,416 36.7% Acqui
Slide 8: Market Share and Growth
Market Share and Growth Market Penetration in Mexico Market Share Q Cumulative Growth 400% 350% *CAGR (%) 300% 250% Q 16.5% 200% Market 7.8% 150% Market 100% without Q 5.5% 50% 0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 9M16 Source: INEGI, AMIS *CAGR: Compound Annual Growth Rate 8
Slide 9: Market Share
Market Share 2010 2011 2012 2013 2014 2015 9M16 Quálitas 19.6 20.1 21.5 22.5 24.9 25.3 30.9 G.N.P. 12.4 11.1 12.3 12.4 12.5 14.3 12.4 AXA Seguros 17.4 18.6 18.1 16.5 14.0 12.1 10.8 ABA 9.5 8.6 7.5 7.8 7.7 7.0 6.6 Mapfre México 5.4 5.5 7.4 5.9 6.5 6.3 5.3 Other 15.6 15.3 14.3 16.5 16.2 16.8 16.4 Bank
Slide 10: Auto Insurance Industry – 9M16
Auto Insurance Industry – 9M16 Written Premiums Claims Market Share Company 2016 2015 Δ% Ratio 2016 2015 Quálitas 19,945 13,527 47.4% 61% 30.9% 25.0% G.N.P. 7,996 7,346 8.8% 73% 12.4% 13.6% AXA Seguros 6,979 6,396 9.1% 73% 10.8% 11.8% Aba/Seguros 4,269 3,966 7.6% 67% 6.6% 7.3% Banorte 3,851 3,388 13
Slide 11: Operating Result – Automobile Segment
Operating Result – Automobile Segment 2009 2010 2011 2012* 2013 2014 2015 9M16 Total Total Quálitas (221) (76) 475 903 483 (95) 47 1,241 2,758 Quálitas 2,758 G.N.P. (499) (668) (371) (373) (27) (87) (221) (399) (2,644) Other (7,243) AXA Seguros (892) 82 (132) 173 (594) (453) (651) (104) (2,572) Bank
Slide 12: Operating Result – All Business Lines
Operating Result – All Business Lines 2009 2010 2011 2012 2013 2014 2015 9M16 Total Total Quálitas (220) (75) 475 903 484 (93) 48 1,242 2,765 Quálitas 2,765 G.N.P. (2,050) (1,906) (2,112) (2,508) (2,469) (3,405) (3,553) (1,883) (19,885) Other (30,738) AXA Seguros (3,008) (1,560) (1,906) (1,223) (2,4
Slide 13: Net Result – Automobile Segment
Net Result – Automobile Segment 2009 2010 2011 2012 2013 2014 2015 9M16 Total Total Quálitas 226 392 833 1,254 840 680 619 1,361 6,204 Quálitas 6,204 G.N.P. (10) (209) 11 69 356 186 102 (108) 398 Other 9,938 AXA Seguros (372) 333 472 651 44 188 (163) 264 1,417 Bank-owned17,983 ABA 48 316 842 819 845
Slide 14: Net Result – All Business Lines
Net Result – All Business Lines 2009 2010 2011 2012 2013 2014 2015 9M16 Total Total Quálitas 246 415 835 1,256 841 682 621 1,362 6,257 Quálitas 6,257 G.N.P. 1,001 691 701 663 790 223 169 1,097 5,335 Other 141,308 AXA Seguros 418 26 413 622 (328) 358 319 850 2,678 Total 147,564 ABA 399 303 875 854 79
Slide 15: Q MX and Industry – Cost Ratios
Q MX and Industry – Cost Ratios Acquisition Claims Operating Combined 15
Slide 16: Q Cost Ratios – 3Q16
Q Cost Ratios – 3Q16 Acquisition Claims Operating Combined 16
Slide 17: Investment Income
Investment Income Portfolio by Type of Issuer Portfolio by Risk Type Return on Investments 1 1 28 -Day Treasury issued by Mexican Federal Government 17
Slide 18: Investment Income
Investment Income Return on Equities Equities (MM MXN) 3Q16 2016 Gain from Equities 150 233 Average Portfolio 3,688 3,407 Annualized Yield 16.1% 9.1% Naftrac Yield 11.7% 12.9% IRT Yield 2 12.7% 15.0% 2 Naftrac yield + dividends 18
Slide 19: Profitability
Profitability LTM ROE Cash and Investments per Share** Dividend Payments** *CAGR: 20.8% $0.40 $0.50 $1.50 $0.50 $2.90 Equity (MM MXN) 2010 2011 2012 2013 2014 2015 3Q16 Leverage 5.60 4.85 4.09 4.42 4.59 4.84 5.18 Stockholders' Equity 2,047 2,573 3,583 3,757 4,368 4,972 6,043 Equity Growth1 0.26 0.75
Slide 20: Solvency Margin Analysis
Solvency Margin Analysis Q's solvency margin was $2,419, and a solvency margin ratio of 83.7% Regulatory Capital Solvency Margin (MM MXN) Solvency Margin Requirement Ratio Q MX 2,456 2,126 86.6% Q ES 51 22 42.0% Q CR 92 28 30.7% QIC 291 161 55.5% Total 2,890 2,337 Q Cash 82 Q 2,890 2,419 83.7% Divid
Slide 21: Analysts
Analysts IR Contact: Mariana Fernández T: + 52 55 1555 6103 email: mfernandez@qualitas.com.mx 21
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