Yahoo Finance

• Written Premiums Growth: 27.4% for the quarter, 28.9% for the year.

• Mexican Operation Growth: 30.1% for the quarter, 30.7% for the year.

• Fleet Business Growth: 49.1% for the quarter, 43.9% for the year.

• Financial Institutions Growth: 23.2% for the quarter, 25.6% for the year.

• Market Share in Written Premiums: 32.9% by end of Q3.

• Insured Units: Over 5.7 million, a 7.5% increase versus 2023.

• Earned Premiums Growth: 17.7% for the quarter, 23.4% for the year.

• Claims Ratio: 66% for the quarter, 66.3% for the year.

• Loss Ratio in Mexico: 63.2% for the quarter, 64.4% for the year.

• Acquisition Ratio: 21.2% for the quarter, 22% for the year.

• Operating Ratio: 3.5% for the quarter, 4% for the year.

• Combined Ratio: 90.8% for the quarter, 92.2% for the year.

• Comprehensive Financial Income Growth: 41.9% for the quarter, 24.5% for the year.

• Investment Portfolio ROI: 11.5% for the quarter, 9.6% for the year.

• Net Income: MXN 1.4 billion for the quarter, MXN 5.1 billion for the year.

• Net Margin: 6.6% for the quarter, 7.4% for the year.

• Return on Equity (ROE): 22.2% for the year.

• Solvency Ratio: 421%.

• Warning! GuruFocus has detected 8 Warning Signs with RTX.

Release Date: January 28, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Qualitas Controladora SAB de CV (MEX:Q) achieved a significant market share in the auto insurance industry, with 32.9% in written premiums and 35.9% in earned premiums.

• The company reported a 29% increase in top-line growth and maintained a strong return on equity (ROE) of about 20%, aligning with its long-term goals.

• Qualitas surpassed 5.7 million insured units, adding over 400,000 units in 2024, marking a 7.5% increase compared to 2023.

• The company's call center improved its average response time from 8 to 6 seconds, achieving a satisfaction rate of 95% for the year.

• Qualitas expanded its operations into Colombia and completed a strategic acquisition to enhance its vertical integration, strengthening its subsidiary Flekk.

Negative Points

• The U.S. subsidiary faced challenges, posting a net loss of $40 million for the year, with a strategy to reach breakeven by 2026.

• The company anticipates potential challenges due to government changes in Mexico and the U.S., which could impact economic conditions.

• There is increased competition in the fleet segment, which may pressure pricing and market share.

• The company is dealing with a VAT litigation process, although no provisions have been made yet.

• Qualitas faces potential risks from insecurity in northern Mexico due to massive deportations, which could affect its truck business.