Quálitas Controladora, S.A.B. de C.V.

Fourth-quarter written premiums grew 6.4%, and full-year written premiums rose 9.4% to MXN 75.8 billion. Earned premiums increased 8.5% in the quarter and 13.1% for the full year. The company reported a quarterly net loss of MXN 190 million, while full-year net income was MXN 5.1 billion, with a 6.7% net margin and 20.2% 12-month ROE. The full-year combined ratio was 94.1%, or 90.6% excluding the VAT impact; the full-year loss ratio was 65.7%, or 62.2% excluding VAT. Looking ahead, management said 2026 written premiums should grow in the high single digits to low double digits, earned premiums a few points ahead, the loss ratio should be in the higher end or slightly above the 62% to 65% technical range, and the combined ratio should land at the upper end of the 92% to 94% target range or slightly higher.

Jose Correa framed 2025 as a strong year achieved amid regulatory change, pricing pressure, and a challenging macro backdrop. He emphasized Quálitas’ market leadership, saying the company remains the clear leader in written and earned premiums and highlighting that the business has doubled in size over four years. His tone was confident but cautious: 2026 was described as complex and transitional, yet he said the company is well positioned to continue creating value through disciplined execution and the company’s three-pillar strategy.

Roberto Balderas focused on the earnings bridge, explaining that the quarterly results were heavily distorted by the full-year VAT impact recognized in Q4. He cited MXN 4.2 billion of reserves in the quarter, MXN 53.2 billion in investment assets, 8.4% portfolio yield to maturity, MXN 1.2 billion of quarterly comprehensive financial income, MXN 5.1 billion for the full year, and a 362% solvency ratio with MXN 16.1 billion of solvency margin. He also said the business remains capital-disciplined, dividend distribution will stay a core allocation priority, and the expected dividend should fall within the 40% to 90% policy range.

Analysts focused heavily on 2026 financial income, the VAT carryover, and whether the company could still hold ROE near 20%. Management said absolute investment returns could be lower than 2025, but the portfolio should continue to outperform reference rates because duration was extended to about 2.3 years and the strategy is unchanged. On VAT, management clarified there is a second wave of impact in 2026 from 2025 claims not yet finalized plus higher-cost 2026 claims, so early 2026 margins could be above target before improving through the year. Questions also centered on pricing and competition; management said rate increases of 6% to 8% have already been taken, with net renewal increases for individuals closer to 3% to 5%, while competition remains intense and case-specific, especially in fleets.