March 21st, 2024

Dear shareholders,

2023 was characterized by being a year of great achievements, for the first time Qualitas exceeded 5 million insured units, reaching an annual record of 5.3 million units in the five countries where we operate, representing an increase of 527 thousand units throughout the year. The performance of new car sales in Mexico, up 24% vs. 2022 and finally +3% over 2019, were important drivers of volume growth, as well as our pricing discipline.

The growth in written premium was +27.8% compared to 2022, which translates in a total of $53,726 million pesos in written premium. Growth also makes us face a continuous challenge of effectively delivering excellence in service and meeting the expectations of our customers; throughout the year, we created more than 600 new positions to maintain the quality standards of all our customers- most of them to support our call center, claim officers, and operational team. I am proud that our constant efforts to improve Qualitas' service experience have paid off, over 70% of our processes achieved a satisfaction rate within our target range of ~90%.

The entire organization works within a horizontal structure to be able to service our 562 service offices and all our agents, who are our top priority. We need to make sure that the DNA of Qualitas is truly prevalent in the new generations of employees through its "qualitization" process.

Regarding our costs and ratios, both the acquisition and operating ratios remained within their historical ranges in a stable manner. However, our loss ratio closed the year with a rate of 70.9%, reflecting the incidence of factors such as frequency and robberies trends, the impacts of Hurricane Otis and the adjustments of our subsidiary in the United States. We continue to work on efficiencies within our operation using technology and strengthening our vertical integration, to gradually return to our target range of 62% to 65%.

Regarding our comprehensive financial income, it closed the year at $3,961 million pesos with a return on investment of 9.4% per year. At the end of 2023, 89% of the investment portfolio was invested in fixed income with a total duration of 1.5 years.

We close 2023 posting a net income of $3,791 million pesos, which represents +71.6% increase versus previous year, and a net margin of 7.1%. Our earnings per share for the year were $9.9 pesos. Our discipline in cost control and strategy has resulted in both profitable operational and financial performance.

During 2023, we strengthened and advanced in our corporate development plan defined by 10 avenues of growth, of which 4 are already underway:

- During April, we acquired a technology company focused on telemetry and data analysis, seeking to increase our value generation and risk prevention,

- We strengthened our subsidiary Flekk, which continues to demonstrate double-digit revenue growth,

- Our new business line Qualitas Salud performed as expected, maintaining our strategy of gradual entry into this new segment,

-And, we are making progress in the procedures and team formation for our new insurance company in Colombia.

We remain committed to contributing to the United Nations Sustainable Development Goals (SDGs) and to implementing the 10 Principles of the United Nations Global Compact, always including business profitability under a responsible investment approach. Qualitas Controladora was once again included in the 2023 Bloomberg Gender Equality Index and returned to the Dow Jones Mila Pacific Index, we continue our many campaigns in favour of our communities and the environment.

I thank the entire organization for its valuable contribution throughout the year, the trust and commitment of agents, business partners and our customers, and the support of our shareholders.

Sincerely,

José Antonio Correa Etchegaray

Qualitas Controladora Board of Directors' Chairman

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Qualitas Controladora SAB de CV published this content on 25 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 March 2024 01:05:08 UTC.