Quálitas Controladora S.A.B (Q) Q4 2024 earnings summary

Executive summary

• Achieved record year with 29% top-line growth, 22.2% ROE, and 32.9% market share in written premiums, surpassing 5.7 million insured units and celebrating 30 years of operations.

• Net income for 2024 reached MXN 5,145 million, up 35.7% year-over-year, with EPS at $12.9 and customer satisfaction at 95%.

• Expanded internationally with new operations in Colombia, growth in Peru and Costa Rica, and acquisition of a major auto glass and parts company in Mexico.

• Strengthened leadership team, reduced turnover rate by 4.1 percentage points, and focused on operational excellence.

• Strategic focus on leadership in Mexico, subsidiary growth, and new business opportunities, with capital allocation supporting these priorities.

Financial highlights

• Written premiums grew 27.4% in Q4 and 28.9% for the year, led by Mexican operations and multi-annual policies; earned premiums up 17.7% in Q4 and 23.4% for the year.

• Net income for Q4 was MXN 1.4 billion, with a full-year net margin of 7.4%; comprehensive financial income grew 41.9% in Q4 and 24.5% for the year.

• Investment portfolio ROI reached 11.5% in Q4 and 9.6% for the year; technical reserves increased by MXN 10,804 million YoY.

• Insured units reached 5,737,056, with a 5-year CAGR of 8.0%.

• Solvency margin at year-end was MXN 17,541 million, with a solvency ratio of 421%.

Outlook and guidance

• Targeting high single-digit to low-mid teens top-line growth for 2025, with earned premiums outpacing written premiums.

• Loss ratio targeted within 62%-65%; combined ratio expected to remain in 92%-94% range.

• ROE objective set at 20%-25% for 2025; financial income anticipated to be similar to 2024.

• Capital allocation will focus on strengthening leadership in Mexico, accelerating subsidiary growth, and expanding into new insurance business lines.