Corporate Presentation

Transcription

1 Corporate Presentation 1

2 Business Fundamentals High quality service philosophy State of the art technology Nationwide network with 332 offices Outstanding Service Cost Control Specialization Decentralization Strict cost control policy # 1 auto insurance company in Mexico with 25.0% of market share Tailor made solutions Independent decision-making according to office needs 2

3 Business Model Quálitas' entrepreneurial business model promotes comprehensive service and cost control Quálitas Call Center IT Support Product Pricing Claims Infrastructure New Channels: Telephone & Internet Service Offices Owned by specialized local entrepreneurs Independent decision-making Compensation to office representatives links sales with claims costs Agents Agents are not exclusive Commissions are based on written premiums and premiums growth 3

4 Outstanding Service Quálitas has the largest service network in Mexico Service Network Network in Mexico of 179 service offices, 153 ODQs and +9,000 Agents Operations in USA, El Salvador and Costa Rica Distribution Channels Quálitas distributes its policies through: Traditional 1 Financial Institutions 2 Direct Sales: ODQs 3, Telephone & New Channels Internet 1) Includes Agents and Brokers 2) Financial branch of major automakers and Financial Groups that grant automotive credit 3) ODQs: Oficinas en Desarrollo Quálitas, Quálitas Development Offices 4

5 Written Premiums and Insured Vehicles Segment (MM MXN) 9M15 9M14 % Premiums Breakdown Individual 2,866 2, % 20.5% Fleets 4,383 4, % 31.4% Traditional 7,250 6, % 51.9% Financial Institutions 5,880 5, % 42.1% Subsidiaries % 3.0% Other % 3.0% Total 13,971 12, % 100.0% Insured Vehicles *CAGR: 12.7% Business Line 9M15 9M14 % Automobiles 1,852,566 1,691, % Trucks 664, , % Tourists 89,231 92, % Motorcycles 78,337 73, % El Salvador 16,470 15, % Costa Rica 22,731 17, % USA 3, NA Insured Vehicles 2,726,990 2,472, % NA: Not Applicable *CAGR: Compound Annual Growth Rate 5

6 Market Share and Growth Market Penetration in Mexico Market Share Q Cumulative Growth (Premiums) 450% 400% 350% 300% 250% 200% 150% *CAGR (%) Q 15.7% Market 6.7% 100% 50% 0% Market without Q 5.0% Source: INEGI, AMIS *CAGR: Compound Annual Growth Rate -50% M15 Base: 2005 = 0 6

7 Market Share % Market Share M15 Quálitas G.N.P AXA Seguros ABA/ACE Mapfre México Other Bank-owned Total Market Source: AMIS 7

8 Operating Result (MM MXN) A B C D E F G Operating Result * M15 Σ (A:G) Quálitas (221) (76) (95) 306 1,776 Op. Result 7 years G.N.P. (499) (668) (371) (373) (27) (87) (3) (2,028) Quálitas 1,776 AXA Seguros (892) 82 (132) 173 (594) (453) (97) (1,914) Other (5,167) ABA/ACE (170) (140) (97) 861 Bank-owned 10,925 Mapfre México 74 (133) (22) 69 3 (14) (15) (38) Total 7,533 4 main competitors (1,487) (858) (170) 280 (249) (423) (211) (3,119) Other 4 (668) (124) 273 (89) (595) (849) (2,049) Bank-owned ,590 2,114 2,410 2,089 1,398 10,925 Total Market (1,228) (754) 1,771 3,570 2, ,533 *NOTE: During 2012 there was a MXP 94 million benefit due to the change in the booking of policy fees Source: AMIS NOTE: Mexican automobile insurance figures 8

9 Operating Result Source: AMIS NOTE: Mexican automobile insurance figures 9

10 Combined Ratio - Top 5 Insurance Companies (AMIS) Source: AMIS COMBINED RATIO M15 Quálitas 94% 90% 94% 97% 95% AXA 99% 97% 104% 107% 106% GNP 106% 100% 97% 99% 97% Mapfre 97% 91% 98% 97% 98% ABA/ACE 88% 90% 94% 99% 106% 10

11 Industry Ratios Source: AMIS 11

12 Automobile Insurance Industry 9M15 Company Written Premiums Market Share Growth Earned Premiums Market Share (MM MXN) (written) 9M15-9M14 (MM MXN) (earned) 1 Quálitas 13, % 10.5% 12, % 2 G.N.P. 7, % 28.6% 6, % 3 AXA Seguros % -11.4% % 4 Aba/Seguros % 1.9% % 5 Banorte % 11.3% % LARGE 34, % 7.8% 31, % 6 Mapfre México 3, % 6.3% 3, % 7 Inbursa 3, % 6.7% 3, % 8 HDI Seguros 2, % 45.2% 2, % 9 BBVA Bancomer 2, % 2.8% 2, % 10 Zurich Daños 1, % 8.0% 1, % 11 Atlas 1, % 9.8% 1, % 12 General de Seguros % 41.4% % 13 Afirme % 20.3% % 14 ANA % -22.7% % 15 Royal & Sunalliance % 5.5% % MEDIUM 17, % 11.4% 15, % SMALL 1, % 12.7% 1, % MARKET (37 Comp) 54, % 9.1% 49, % Source: AMIS NOTE: Mexican automobile insurance figures 12

13 Automobile Insurance Industry 9M15 Company Operating Investment Net Claims Combined (MM MXN) Result Income Result Ratio Ratio 1 Quálitas % 95% 2 G.N.P % 97% 3 AXA Seguros % 106% 4 Aba/Seguros % 106% 5 Banorte % 80% LARGE 701 1,423 1,770 68% 97% 6 Mapfre México % 98% 7 Inbursa % 92% 8 HDI Seguros % 101% 9 BBVA Bancomer % 81% 10 Zurich Daños % 105% 11 Atlas % 96% 12 General de Seguros % 120% 13 Afirme % 104% 14 ANA % 109% 15 Royal & Sunalliance % 128% MEDIUM -93 1,250 1,122 65% 98% SMALL % 94% MARKET (37 Comp) 643 2,788 3,088 67% 97% Source: AMIS NOTE: Mexican automobile insurance figures 13

14 Costs Ratios Q Acquisition Claims Operating Combined 14

15 Investment Income Return on Investments Portfolio by Risk Type 1 Return on Equities Equities (MM MXN) 3Q15 9M15 Gain from Equities Quarterly Average Portfolio 2,788 2,709 Annualized Yield 5.2% 6.4% Naftrac Yield (21.6%) (1.5%) 2 IRT Yield (19.2%) 0.3% 1) 28 -Day Treasury issued by Mexican Federal Government 2) Naftrac + Dividends 15

16 Solvency Margin Analysis 9M15 Q s solvency margin was $1,436, that represents a solvency margin ratio of 43.1% (MM MXN) Minimum Equity Requirement Solvency Margin Solvency Margin Ratio Qmx 2,948 1, % Qsv % Qcr % QUIC % Total 3,330 1,317 Cash Q 88 Q 3,330 1, % Dividend Policy Q aims to maintain a minimum stockholders equity of 1.5 times the minimum capital requirement dictated by regulatory provisions. Between 50% and 90% of the surplus will be distributed as a dividend, depending on the Company s capital requirements for future projects. 16

17 Profitability LTM ROE Equity (MM MXN) Q15 Leverage Stockholders' Equity 2,047 2,573 3,583 3,757 4,368 4,923 1 Equity Growth Dividend Payment Wealth Growth Variations relative to 2010 figures Cash per Share** *CAGR: 15.0% Dividend Payments** $0.30 $0.40 $0.50 $1.50 ** Mexican Pesos *CAGR: Compound Annual Growth Rate $

18 Reasons to Invest in Quálitas Profitability Growth without debt Enhancing shareholders value Significant cash flow Unique business model Specialized business model great flexibility Focus on service & cost control higher profitability High growth potential 70% non-insured market New distribution channels Market Positioning & Economies of scale Entry barriers for new participants due to the complexity of the market Experienced Management Team Highly involved in day to day operations Balances growth & profitability 18

19 Analysts: IR Contacts: Institution Analyst Actinver Juan Ponce BBVA Research To be defined Grupo Bursátil Mexicano Gilberto Tonello Interacciones Enrique Mendoza Nau Securities Iñigo Vega Signum Research Ana Tellería Ve por Más Juan Hernández Vector Rafael Escobar Antonia Gutiérrez T: agutierrez@qualitas.com.mx Mariana Fernández T: mfernandez@qualitas.com.mx Elba Salcedo T: esalcedo@qualitas.com.mx 19