Qualitas Controladora S.a.b. De C.v. · BMV:Q
Qualitas Controladora S.a.b. De C.v — Investor Presentation (March 2019)
21 slides from Qualitas Controladora S.a.b. De C.v's investor presentation, Mar 14, 2019
Slide 1: 2018 Analysts presentation
Mexico City, March 20th, 2019 2018 Analysts presentation Quálitas Controladora, S.A.B. de C.V. ("Quálitas", "The Company" or "the Group") (BMV: Q*), informs its shareholders and the investment community that the past March 14th a presentation was held in Mexico City for the analysts of the financial
Slide 2: About Quálitas
We also discussed the strategy that the company has followed for 25 years in terms of service and cost control and that has allowed the company to stand out in the insurance sector, as well as the business model focused on granting an excellent service with interests aligned along the chain. Emphasi
Slide 3: Analysts Presentation
Analysts Presentation Joaquín Brockman L. José Antonio Correa E. Bernardo Risoul S. March 14th 2019 1
Slide 4: Agenda
• Welcome • General overview • 2018 results • Quálitas market share • 2019 outlook • Business fundamentals • 25 years is just the beginning 2
Slide 5: Mexican auto market overview
-7.1 New car sales in México 3 out of 10 cars are insured (2018) Increase of 6% in the recovery More than 68% of the cars are of insured stolen vehicles financed Mandatory Insurance= Civil 3% increase in the theft of liability + Collision insured vehicles However, Quálitas continues to stand out for
Slide 6: 2018 results: premiums, underwriting result and net income
Written premiums Earned premiums CAGR: 20.2% CAGR: 23.0% Underwriting result Comprehensive financial income Net income CAGR: 62.6% CAGR: Compound Annual Growth Rate 4
Slide 7: ROE 12M
ROE 12M Long-term goal 18%-24% 5
Slide 8: Industry cost ratios
Acquisition Claims Combined Operating * 6 Source: AMIS (last figures reported) *Without employees profit sharing
Slide 9: Q market share by segment
29.9% 15.5% 12.0% 10.6% 9.0% 7.0% 3.2% Q market share by segment Cars 21.7% Trucks 47.7% Tourists 17.5% 7 Source: AMIS (last figures reported)
Slide 10: 2019e guidance
2019e Premiums Written growth 5-7% Premiums Earned growth 7-9% Ratios Acquisition 22-24% Claims 68-69% Operating 3-4% Combined 93-97% Underwriting Margin (underwritting 3-4% result / primiums earned) Annual average of Banxico's interest Return on Investments rate* + 350/400 million pesos of Premiums
Slide 11: Business fundamentals
1 Capitalize fleet and individual segments 2 Technological innovations 3 Additional coverage 5 Investment 4 Pricing and subscription strategy 9
Slide 12: Written premiums by segment
Financial Fleets Individual ODQ Other Total Institutions If the ODQs were an independent 2018 12,994 10,662 8,331 726 110 32,823 auto insurance company, they 2017 14,733 9,294 6,862 587 674 32,149 would now be in the 19/33 position Δ Relative (11.8%) 14.7% 21.4% 23.6% (83.7%) 2.1% Absolut (1,738) 1,
Slide 13: Accident prevention
A) Accident prevention Heavy equipment accident rate 2017 2018 82.4% 72.3% Risk training Our differentiator; Joint work to prevent Analysis of the information accidents. Devices / Technology Technology 11
Slide 14: Process automation and artificial intelligence
B) PROCESS AUTOMATION AND ARTIFICIAL INTELLIGENCE Implementation at the call center to improve time of response and quality of service Examples: Virtual Express Vehicle assistant Q Mobile for adjustment inspection adjuster 12
Slide 15: Multichannel service for policyholders
C) MULTICHANNEL TO OFFER THE SERVICE TO OUR POLICYHOLDERS THROUGH ANY OF: 13
Slide 16: Products made for each policyholder
Products made for each policyholder Objective: Increase Premium income Transportation expenses in case Auto agency Replacement car of total loss Cross civil Partial theft liability + 40 14
Slide 17: Tariff structure
TARIFF STRUCTURE Leaders in the market with discipline in price management (both ways) 15
Slide 18: Investment portfolio and return on investments
Portfolio by risk Portfolio by type of issuer Return on investments (%) 16
Slide 19: Q* stock price
Q* Stock Price * 2018 Average traded volume: 606.6 K 2018 Average traded value: 28,845 K (MXN) Q* MEXBOL Liquidity: High 12M 13.3% (15.6%) Indices: DJSI MILA Pacific Alliance, FTSE BIVA 17 * March 13th 2019
Slide 20: 25 years is just the beginning
years Is just the beginning...
Slide 21: Investor relations contacts
Santiago Monroy Andreina Incandela María Fernanda Escobar T: +52 55 15556056 T: +52 55 15556104 T: +52 55 15556175 smonroy@qualitas.com.mx aincandela@qualitas.com.mx mfescobar@qualitas.com.mx 19
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