Quálitas Controladora S.A.B (Q) investor relations material

Executive summary

• Written premiums grew 15.3% year-over-year to MXN 21,693 million, driven by fleet and financial institution segments, maintaining a 33.9% market share in Mexico.

• Net income for the quarter was MXN 1.6 billion, a decrease of 23.3%–27.5% year-over-year, mainly due to higher loss ratios and lower investment returns.

• Strategic focus remains on service excellence, disciplined pricing, innovation, and leadership in Mexico, with continued LatAm expansion.

• Insured units reached approximately 6.1 million, up 3.4% year-over-year, with a 5-year CAGR of 9.1%.

• Vertical integration, productivity initiatives, and disciplined execution are driving cost efficiencies and improved claims management.

Financial highlights

• Written premiums up 15.3% YoY to MXN 21,693 million; earned premiums increased 11.7% to MXN 18,800 million.

• Claims ratio at 62.6%, with Mexico at 61.2%, both within or below target ranges.

• Net income reached MXN 1.6 billion, net margin 7.2%, and quarterly ROE at 23.7%; 12-month ROE at 16.8%.

• Comprehensive financial income decreased 23.3% YoY due to lower interest rates and absence of prior year one-time gains.

• Investment portfolio yield to maturity at 8.3%, with 86.8% in fixed income; portfolio reached MXN 54 billion.

Outlook and guidance

• Top-line growth expected in high single to low double digits for 2026; management aims to sustain strong performance while prioritizing long-term business health.

• Loss ratio anticipated at the higher end of the 62%-65% technical range; combined ratio expected at the upper end of the 92%-94% target.

• ROE for the year targeted around 20%, potentially slightly below depending on market evolution.

• Dividend of MXN 9 per share and MXN 800 million share buyback fund to be proposed at the Shareholders' Meeting.

• Focus on leadership in Mexico, accelerating subsidiary growth, and expanding into new insurance business lines.