Qualitas Controladra Sab

Thank you for standing by. This is the conference operator. Good morning and welcome to Qualitas' third quarter 2023 earnings results webcast. The conference will begin now. It is my pleasure to turn the call over to Santiago Monroy, Qualitas' IRO.

Good morning and thank you for joining Qualitas' third quarter and first nine months 2023 earnings call. Jose Antonio Correa and Bernardo Rizul, our CEO and Deputy CEO, are joining us today. As a reminder, discussions in this event may include forward-looking statements. These statements are based on management's current expectations and are subject to many risks and uncertainties that could cause actual events and results to differ materially from those discussed during today's call. Let's turn it over to Jose Antonio Correa, our CEO, for his remarks.

Thank you, Santiago, and good morning, everyone. During the third quarter and throughout the year, our team and business model have shown Qualitas capacity and vision to create value despite multiple headwinds and challenging environments. The pace of our underwriting business is remarkable, and that doesn't mean we are standing still. Next year, we will be a 30-year-old company of which we have been leaders for the past 16 years as we keep on focus on staying agile and flexible while continue to provide best-in-class service and actively listening to our agents and policyholders in this very dynamic environment. In early September, we held our analyst day, where we look at our strategy and how we will ensure Qualitas continues being a winning company throughout creating value across the following stakeholders. First, I would say that we create value for our policyholders by strengthening our competitive advantages. we are able to increase and provide the best value proposition in the market. We keep reaching record highs in sure units, 5.37 million by September end, while delivering excellence in service with year-to-date net promoter score of 88%. Additionally, we create value for our agents. The traditional distribution channel, mostly driven by them, has posted a 17.5 compounded annual growth rate from the past five years. This channel is supported by our more than 21,000 non-exclusive agents and represents 65% of year-to-date written premiums. During September, Qualitas México was awarded for the fourth year in a row as La Aseguradora Ideal, or 2023 Ideal Insurance Company, by a specialized magazine where agents are the voters. Being recognized as the insurance company where our most important business partners prefer to work and make businesses with, it's not only an honorable distinctive, but also motivate us to keep on building our commitment to offer a differentiated product and create long-term relationships. Number three, we create value for our employees. By September end, we have 6,180 employees under our payroll, from which 99% have a permanent labor contract. They have a career development plan to offer professional growth, and we are strengthening our onboarding programs to ensure everyone at Qualitas knows, shares, and leaves our DNA. Very important. We recently added a new corporate benefit to our many other Qualitas corporate remunerations, a retirement fund to which Qualitas adds a percentage of the amount saved by the employees. Four, we create value for our shareholders. In the past eight years, we have consistently distributed cash dividends. We have increased the liquidity of our stock, which currently trades around $8 million. And overall, the stock performance is sustained by profitable and consistent fundamentals reflected in the strong financials delivered in the past years and during these first nine months of the year. We have reached or surpassed our ROE of 20% in many years, building a strong capital position that allow us to continue investing to fuel growth while providing returns to our investors. And also, we create value for our community. In line with our sustainability strategy, we aim to be involved with our community through initiatives and concrete actions with a positive impact not only in the society but also in our business. Our ODQ model, for example, opens the possibility to provide access to insurance in remote locations. The 337 ODQs have shown a 10% compounded adult growth rate in the past five years, and year-to-date 26% top-line growth. We also have the road behavior program Conducta Vial Qualitas, looking to raise awareness of road safety issues among vehicle drivers, but also for other road users such as cyclists and pedestrians. We are pleased with year-to-date top-line performance of our business, and while we recognize that cost pressures prevail, mainly explained by industry inflation and robberies, we have and will continue to take actions to have a profitable and sustainable business. We are certainly on the right path. And with that, I will now pass it over to Bernardo for a deep dive in our quarter and year-to-date performance. Bernardo, please.