Qualitas Controladora S.a.b. De C.v. · BMV:Q

Qualitas Controladora S.a.b. De C.v — Investor Presentation (2019)

28 slides from Qualitas Controladora S.a.b. De C.v's investor presentation, 2019

  1. Slide 1: Corporate Presentation 1st Quarter 2019

    Corporate Presentation 1st Quarter 2019

  2. Slide 2: Corporate Presentation: acquisitions

    Corporate Presentation 1. On March 27th 2019, Quálitas acquired 100% of the shares of HDI Peru. 2. On November 12th 2018, Quálitas acquired 147,790 additional shares, passing from a 50.86% stake to 99.99%. p. 02

  3. Slide 3: Mexican specialized auto insurer with 25 years in the market

    Corporate Presentation Mexican specialized auto insurer with 25 years in the market. Market leader in Mexico since 2007. International presence in the USA, Costa Rica, El Salvador and Peru. UNDERWRITING ASSET MANAGEMENT TOTAL BUSINESS 2019 Revenue1 MXN 8.0 bn Float MXN 30.5 bn Net Income MXN 1.1 bn

  4. Slide 4: Outstanding Service, Specialization, Decentralization, Cost Control

    Corporate Presentation Outstanding Service Specialization  Top quality service  Unique Business Model  State of the art technology  Nationwide network with 409 offices  #1 auto insurance company in Mexico  Experienced management team with 29.9%* of market share “Focus on service “Flexibility t

  5. Slide 5: Operational Center Quálitas

    Corporate Presentation Agents  Agents are not exclusive  Agents look after the interests of Policyholders policyholders Service Offices  Owned by specialized entrepreneurs Agents  Independent decision-making  Compensation to office representatives links sales with claims costs Service Offices O

  6. Slide 6: Participation of subsidiaries in written premiums

    Corporate Presentation Participation of subsidiaries in written premiums QIC: 2.9% Q ES: 0.4% Q MX: 95.2% Q CR: 1.5% Quálitas Perú: New market p. 06 *Quálitas Development Offices

  7. Slide 7: Market share in Mexican auto insurance

    Corporate Presentation 10 11 12 13 14 15 16 17 18 Quálitas 19.6 20.1 21.5 22.5 24.9 25.3 31.5 31.3 29.9 G.N.P. 12.4 11.1 12.3 12.4 12.5 14.3 12.7 12.4 12.0 Chubb (ABA) 9.5 8.6 7.5 7.8 7.7 7.0 6.8 9.1 10.6 AXA 17.4 18.6 18.1 16.5 14.0 12.1 10.9 8.4 9.0 HDI (Talanx) 1.7 1.8 1.9 3.7 4.0 5.0 4.9 5.8 7.0

  8. Slide 8: Premiums by duration and segment

    Corporate Presentation Premiums by duration 1Q19 1Q18 Premiums by segment Segment 1Q19 1Q18 Δ$ Δ% Individual 2,726 2,298 428 18.6% Fleets 2,611 2,742 (131) (4.8%) Financial 2,616 3,557 (940) (26.4%) Foreign 401 390 12 3.0% Other 33 60 (27) (45.2%) Total 8,387 9,046 (659) (7.3%) p. 08

  9. Slide 9: Insured units, market share by segment, penetration

    Corporate Presentation 2019 Insured units *CAGR: 4.4% Q Market Share by segment Cars 21.7% Trucks 47.7% Tourists 17.5% Auto Insurance Penetration in Mexico Mandatory Insurance in every state except for Michoacán p. 09 Source: Mexican Association of Insurance Institutions (AMIS) (last figures reporte

  10. Slide 10: Auto sales trends in Mexico

    Corporate Presentation *  2018 -7.1% Cumulative decrease  Financing-> 68.1% of sales  Vehicles imports -> +16.0% p. 10 Source: AMDA

  11. Slide 11: Vehicle theft and recovery

    Corporate Presentation -6.9% +2.5% Theft to Industry Theft to Quálitas Theft to Q: -15.4% Q Recovery: +8.1% Industry's Recovery Quálitas' Recovery p. 11 Source: OCRA (Coordination Office for Insured Risks)

  12. Slide 12: Written premiums, earned premiums, underwriting result

    Corporate Presentation Written Premiums Earned Premiums Underwriting result CAGR: 9.8% CAGR: 17.0% CAGR: 27.0% (7.3%) +4.8% +152.2% Comprehensive Financial Income Net Income CAGR: 104.4% CAGR: 48.1% +39.1% +102.6% p. 12 CAGR: Compound Annual Growth Rate

  13. Slide 13: Acquisition, claims, operating and combined ratios

    Corporate Presentation Acquisition Claims Operating Combined p. 13

  14. Slide 14: Cost ratios versus industry

    Corporate Presentation Acquisition Claims * Operating Combined p. 14 Source: AMIS (last figures reported) *It refers to the Mexican automobile insurance industry

  15. Slide 15: Investment portfolio by risk and issuer

    Corporate Presentation Portfolio by risk Portfolio by type of issuer Invested assets, float, MXN BN Return on investments CAGR:23.7% 1 p. 15 CAGR: Compound Annual Growth Rate 1 Cetes 28- Treasury bonds

  16. Slide 16: Approved AGM points: dividend and buyback

    Corporate Presentation Approved points AGM: • To pay a cash dividend of $0.85 pesos per share. • To cancel 10 million shares (reduction of capital stock). • Share buyback of $650 million. It can reach a maximum of $700 million considering the surplus derived from its operation. CAGR: 19.3% CAGR: 19.

  17. Slide 17: Dividend policy

    Corporate Presentation Dividend policy Q aims to maintain a minimum stockholders’ equity of 1.5 times the regulatory capital requirement. Between 50% and 90% of the surplus could be distributed as a dividend, depending on the Company’s capital requirements for future projects. p. 17 % of Solvency Ma

  18. Slide 18: Q* vs Mexbol

    Corporate Presentation Marketability Index Mar 18 47 Apr 18 44 May 18 42 Jun 18 40 Jul 18 41 Aug 18 42 Sep 18 44 High liquidity Oct 18 45 Nov 18 47 Dec 18 48 Jan 19 46 Feb 19 46 Mar 19 46 Daily average Q* vs Mexbol Traded (MXN) (USD) Q* ∆% ∆% ∆% Q* IPC Volume Volume Volume Performance 1Q19 15.3% 3.9

  19. Slide 19: Performance versus peers

    Corporate Presentation Performance Q* Performance • No debt March 1Q19 12M • Benefits from interest rates hikes CREAL 13.4% 23.8% (16.3%) • In-house payroll and employee BOLSA (0.1%) 19.9% 6.4% management – Employee Profit Q (3.4%) 15.3% (5.2%) GFNORTE 0.7% 10.2% (5.0%) Sharing RA (2.3%) 8.2% (12.5%

  20. Slide 20: Environmental Social Governance

    Corporate Presentation Environmental Social Governance Calculation of Greenhouse Gas (GHG) Road Safety Campaign Quálitas Board of Directors: 13 members, 61% emissions Road to safety tour independent, 15% women Use of LED to reduce electricity Quálitas University 5 Advisory committees consumption 41%

  21. Slide 21: Cost Control, Technology and Innovation, Subsidiaries

    Corporate Presentation Technology and Explore business Strengthen Cost Control Subsidiaries Innovation opportunities • Process efficiency • Incorporation of hybrid • Take advantage of our • Business expansion • Timely & accurate cost cars to the fleet extensive network • Reinforce the structure book

  22. Slide 22: Quarterly income statement and balance sheet

    Corporate Presentation QUARTERLY INCOME STATEMENT 1Q19 1Q18 Δ %/bp Premiums Written 8,387 9,046 (7.3%) Net Premiums Written 8,350 8,882 (6.0%) Premiums Earned 8,043 7,675 4.8% Acquisition Cost 1,848 2,022 (8.6%) Loss Cost 4,898 4,859 0.8% Technical Result 1,297 794 63.3% Operating Expenses 344 416 (

  23. Slide 23: Anexos

    Corporate Presentation Anexos 2010 2011 2012* 2013 2014 2015 2016 2017 2018 Total Total Quálitas (76) 475 903 483 (95) 47 1,103 895 1,830 5,566 Quálitas 5,566 G.N.P. (668) (371) (373) (27) (87) (221) (404) (952) 283 (2,820) Other (4,313) Chubb (ABA) (200) 356 411 368 132 (79) 646 499 (56) 2,077 Bank

  24. Slide 24: Anexos

    Corporate Presentation Quálitas 2010 (75) 2011 475 2012 903 2013 484 Anexos 2014 (93) 2015 48 2016 1,104 2017 897 2018 1,831 Total 5,574 Quálitas Total 5,574 G.N.P. (1,906) (2,112) (2,508) (2,469) (3,405) (3,553) (1,855) (3,404) (2,830) (24,041) Other (19,914) Chubb (ABA) (150) 482 517 Revisión Anua

  25. Slide 25: Anexos

    Corporate Presentation Anexos 2010 2011 2012 2013 2014 2015 2016 2017 2018 Total Total Quálitas 392 833 1,254 840 680 619 1,246 2,036 2,417 10,317 Quálitas 10,317 G.N.P. (209) 11 69 356 186 102 188 (299) 827 1,231 Other 15,182 Revisión Anual Chubb (ABA) 316 842 819 845 567 304 592 617 172 5,075 Bank

  26. Slide 26: Anexos

    Corporate Presentation Quálitas 2010 415 2011 835 2012 1,256 2013 841 Anexos 2014 682 2015 621 2016 1,248 2017 2,037 2018 2,418 Total 10,351 Quálitas Total 10,351 G.N.P. 691 701 663 790 223 169 2,126 2,669 3,234 11,266 Other 217,774 Chubb (ABA) AXA 303 26 875 413 854 622 796 (328) Revisión Anual 478

  27. Slide 27: Analyst coverage

    Corporate Presentation Institution Analyst E-mail Target Price Recommendation Merrill Lynch Ernesto Gabilondo ernesto.gabilondo@baml.com 56.0 MXN Buy Barclays Gilberto García gilberto.garcia@barclays.com 55.0 MXN - Actinver Enrique Mendoza emendoza@actinver.com.mx 56.0 MXN Hold Signum Research Arman

  28. Slide 28: Corporate Presentation

    Corporate Presentation p. 28

Quálitas Controladora, S.A.B. de C.V. — Investor Presentation (2019) on 6ix