Corporate 9M 2017 Presentation 1
Quálitas at First Sight • Mexican specialized auto insurer with 23 years in the market • Market leader in Mexico since 2007 • Specialization allows Q to provide best quality service and keep cost under control • International presence in the USA, Costa Rica and El Salvador UNDERWRITING ASSET MANAGEMENT TOTAL BUSINESS 9M17 Float MXN 24.4 bn Net Income MXN 1.2 bn Revenue MXN 20.6 bn 1 ROI 6.6% LTM ROE 17.4% Combined Ratio 98.5% 2 -Solvency Ratio of 179% -Strong pricing discipline -Conservative asset allocation -Financial Strength -Variable compensation -Moderate Risk = + (interest alignment) S&P mxAA+ (stable) -Mexican Treasuries 28 days as AM Best B+ (stable) -Cost Indicators Program benchmark -Dividend Policy -High Tech -Mark-to-market valuation -Over-the-cycle target ROE (apps/devices/portals) -Portfolio composition: 18% - 24% -Non traditional sales structure 76% Fixed Income -Focus on sustainability -Low fix costs 21% Equities 2 1 Earned Premiums 2 Adjusted Combined Ratio: costs (claims + acquisiton + operation)/ earned premiums
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 398 offices with 32.2% of market share Experienced management team Focus on service rather than branding Flexibility to meet each client’s needs Decentralization Cost Control Service offices have independent Strict Cost Control Policy decision-making Costs Indicators' Program Distribution network for costumers’ service Interests alignment through variable Identification of opportunity areas in each compensation process 3 3
Unique Business Model Quálitas • Call center • IT support • Product pricing • Claims Infrastructure • New channels: telephone & internet Service Offices • Owned by specialized entrepeneurs • Independent decision-making • Compensation to office representatives links sales with claims costs Agents • Agents are not exclusive • Agents look after the interests of policyholders 4 4
Network and International Presence Written Premiums 183 Service Offices 215 ODQs 1 3% 4,881 Employees 95% 1,171/402 Claims Officers/Lawyers 2% 9M17 13,517Agents +2 Service Offices +16 ODQs in Mexico 5 5 5 1 Quálitas Development Offices (ODQs) are owned by Quálitas
Innovation & Sustainability Q Agentes App Q Móvil App Risk Management • Encontrack • Mobileye • Route and risk hours study • • Employee Training Drivers Training • Reforestation • Web Service Portals Claims Officers and Valuators • Agents Talent Incubator Programs • Agencies • Care for the environment and • Suppliers natural resources 2 1 6 6 1 Comprehensive program for employees 2 Driving culture campaign to create awareness of the importance of responsible driving
Insured Vehicles By type of vehicle Million units CAGR: 15.8% Sales & financing of new cars in Mexico, units* January - August 7 *Source: AMDA, cumulative figures August CAGR: Compound Annual Growth Rate
Written Premiums Premiums Segment 3Q17 3Q16 Δ $ Δ % Breakdown 9M17 9M16 Δ $ Δ % 345 23.1% 24.7% 1,057 1,839 1,494 5,514 4,458 Individual 23.7% 418 29.0% 25.0% 1,344 1,858 1,440 5,997 4,652 Fleets 28.9% (806) (19.3%) 45.4% 445 3,370 4,177 10,861 10,416 Financial Institutions 4.3% 1 0.2% 4.9% 289 Foreign subsidiaries 363 363 1,245 955 30.3% (124) (99.5%) 0.0% 130 1 124 607 477 Other 27.3% Total 7,431 7,598 (167) (2.2%) 100.0% 24,224 20,958 3,266 15.6% 9M16 9M17 Yearly growth by subsidiary in local currency Growth QIC 34.6% QES 7.4% QCR 27.5% 8 8
Financial Highlights >> In 2016 Q MX began to operate under Solvency II (SII) quantitative models. Due to the adoption of this new methodology, during the first half of 2016 the Company registered a benefit that affected some items of the Income Statement: Without SII effect INCOME STATEMENT 2014 2015 2016 9M17 9M16 Δ %/pb Written Premiums 17,340 19,856 30,190 24,224 20,958 15.6% Earned Premiums 15,356 17,065 23,825 20,624 16,532 24.8% Acquisition Cost 4,143 4,518 7,257 5,711 4,969 15.0% Claims Cost 10,674 11,747 14,710 14,038 10,421 34.7% Operating Expenses 724 803 751 563 573 (1.6%) Underwritting Result (185) (3) 1,107 311 570 (45.5%) Integral Financing Result 1,036 833 826 1,351 784 72.3% Investment Income 917 693 582 1,116 623 79.1% Income Taxes 230 266 633 440 419 5.0% Net Result 624 564 1,301 1,221 935 30.7% Acquisiton Ratio 23.9% 22.8% 24.1% 23.7% 23.8% (11) Claims Ratio 69.5% 68.8% 61.7% 68.1% 63.0% 503 Operating Ratio 4.2% 4.0% 2.5% 2.3% 2.7% (41) Combined Ratio 97.6% 95.6% 88.3% 94.1% 89.6% 451 9 Figures in million pesos. 9
Theft in Mexico & Fx vs. Costs Insurance Industry Theft to the Jan-Sep Fx vs. Costs 10 Source: OCRA, INEGI
Market Share & Growth Potential Market Penetration in Mexico Market Share Q Cumulative Growth Base 2009 500% 450% CAGR (%) 400% Q 17.3% 350% 300% Market 9.7% 250% Market 200% without 7.2% 150% Q 100% 50% 0% 09 10 11 12 13 14 15 16 1H17 11 Source: INEGI, AMIS; latest available data as of June 2017 *CAGR: Compound Annual Growth Rate
Market Share 2009 2010 2011 2012 2013 2014 2015 2016 1H17 Quálitas 18.9 19.6 20.1 21.5 22.5 24.9 25.3 31.5 32.2 G.N.P. 12.8 12.4 11.1 12.3 12.4 12.5 14.3 12.7 12.3 AXA Seguros 18.1 17.4 18.6 18.1 16.5 14.0 12.1 10.9 8.8 ABA 8.5 9.5 8.6 7.5 7.8 7.7 7.0 6.8 8.0 HDI Seguros 1.6 1.7 1.8 1.9 3.7 4.0 5.0 4.9 5.7 Mapfre México 5.8 5.4 5.5 7.4 5.9 6.5 6.3 4.8 3.0 Other 15.5 15.6 15.3 14.3 16.5 16.2 16.8 16.5 14.7 20.4 20.1 20.8 18.9 18.4 18.3 18.2 16.8 15.3 Bank-owned Total Market 100 100 100 100 100 100 100 100 100 12 12 Source: AMIS; latest available data as of June 2017
Operating Result – Automobile Segment 2009 2010 2011 2012* 2013 2014 2015 2016 1H17 Total Total Quálitas (221) (76) 475 903 483 (95) 47 1,103 184 2,804 Quálitas 2,804 G.N.P. (499) (668) (371) (373) (27) (87) (221) (404) (306) (2,956) Other (7,336) ABA (170) (200) 356 411 368 132 (79) 646 270 1,734 Bank-owned 13,134 AXA Seguros (892) 82 (132) 173 (594) (453) (651) (218) 99 (2,588) Total 8,601 HDI Seguros (20) (43) (47) (22) (46) (36) (276) 101 46 (343) Top 5 (1,802) (904) 280 1,092 184 (539) (1,180) 1,228 293 (1,348) Zurich Daños 116 (238) (92) 45 (108) (174) (379) 51 (106) (886) Mapfre México 74 (133) (22) 69 3 (14) (170) (651) (71) (916) Atlas 122 95 146 220 208 105 (6) 123 48 1,060 ANA (23) (3) 6 (2) (2) (43) (30) 33 23 (41) General de Seguros 3 (22) 27 8 3 (33) (277) (92) (28) (411) El Potosi (1) (19) (4) 1 (5) (31) 28 42 20 31 Medium 290 (320) 60 341 99 (191) (834) (494) (114) (1,163) Other (192) (378) (159) 24 (138) (383) (530) (324) 60 (2,021) Bank-owned 476 849 1,590 2,114 2,410 2,089 1,436 1,899 271 13,134 Total Market (1,228) (754) 1,771 3,570 2,555 976 (1,109) 2,310 511 8,601 Source: AMIS; June 2017 figures are the latest available 13 Figures in million pesos. Q MX figures Source: AMIS; June 2017 figures are the latest available 13 *During 2012 Q MX recorded a 94 million benefit due to the change in the booking of policy fees and in 2016 a one time benefit of 752 million due to Solvency II adoption
Operating Result – All Business Lines 2009 2010 2011 2012 2013 2014 2015 2016 1H17 Total Total Quálitas (220) (75) 475 903 484 (93) 48 1,104 184 2,811 Quálitas 2,811 G.N.P. (2,050) (1,906) (2,112) (2,508) (2,469) (3,405) (3,553) (1,855) (2,003) (21,860) Other (26,833) ABA (106) (150) 482 517 433 70 10 897 337 2,489 Total (24,021) AXA Seguros (3,008) (1,560) (1,906) (1,223) (2,498) (1,951) (2,303) (2,283) (476) (17,208) HDI Seguros (49) (40) (37) (10) 12 (62) (166) 170 (9) (192) Top 5 (5,433) (3,731) (3,099) (2,320) (4,038) (5,441) (5,964) (1,968) (1,966) (33,960) Zurich Daños 19 (437) (109) (165) (485) (420) (742) (305) (280) (2,923) Mapfre México (154) (247) (1) 42 43 (79) (495) 2 (32) (921) Atlas 167 23 223 39 96 (10) (129) (188) (32) 187 ANA (23) (3) 6 (2) (2) (43) (30) 33 23 (41) General de Seguros 66 (5) (126) 37 47 (83) (317) (189) (52) (621) El Potosi 3 (9) (9) (9) 11 (17) 123 10 (10) 93 Medium 78 (678) (16) (58) (291) (651) (1,590) (638) (382) (4,227) Other (1,260) (2,778) 168 (640) 3,054 3,855 2,876 5,493 3,398 14,165 Total Market (6,616) (7,186) (2,947) (3,019) (1,275) (2,237) (4,678) 2,887 1,050 (24,021) 14 Source: AMIS; June 2017 figures are the latest available Source: AMIS; June 2017 figures are the latest available 14 Figures in million pesos. Q MX figures
Recommend
More recommend
