Qualitas Controladra Sab

Thank you for standing by. This is the conference operator. Good morning and welcome to Qualitas' first quarter 2024 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 connecting to Qualitas' first quarter 2024 earnings call. I'm Santiago Monroy, Qualitas IRO. Joining us today are our CEO and Chairman of the Board, José Antonio Correa, and Deputy CEO and Vice Chairman, Bernardo Rizul. As a reminder, information discussed at today's call 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. Qualitas Under takes no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise. Let's turn it over to José Antonio, our CEO, for his remarks.

Thank you, Santiago. Good morning, everyone. Great to be with you again. Before diving into our first quarter performance, and although many of you have probably already seen 2023 Mexican auto insurance industry figures, I would like to briefly point out some highlights and provide some color and current market dynamics. Total auto insurance industry posted an annual grid and premiums growth of 27%. Qualitas grew at a stronger pace, up 30%. This performance was mainly driven by a strong 2023 new car sales figures and by tariff adjustments across the industry, which Qualitas led the way on pricing, while competitors still have room to follow through 2024. Regarding the underwriting performance of the Mexican auto insurance industry, only 15 out of 37 companies posted a positive operating result. Qualitas Mexico combined ratios stood at 94% versus 102% from the balance of the industry. As many times mentioned, excellence in service and cost control are and will continue to be our top priority. But this underwriting performance also reflects the external pressures our industry continues to face and which we believe will prevail during 2024, such as number one, frequency and monthly above pre-pandemic levels, number two, thefts increase in line with historical trends during election periods, and number three, spare parts cost and its limited availability. Market supply chain still shows scarcity of a specific brand and models. Qualitas' focus and actions are set to improve profitability and cost control, while strengthening our competitive advantages. This enabled us to post strong results in 2023 and outperform, once again, the market. We reached a record high market share of 32.8 in Mexico, and our bottom line performance accounted for almost 60% of the total industry net result. Our business model is evolving in line with technology and market needs, but after spending time with hundreds of agents and customers, I can tell you this is stronger than ever. Just as an example, around 35% of our clients process their total loss payments and 25% of their repayment payments 100% digitally. We are now attending 28% of claims remotely, and in both cases, creating important operational efficiencies. At the same time, the satisfaction rate for first quarter of 2024 is above 90%, proving that it is possible to find projects that build on both costs and service improvement. Before handing it over to Bernardo and diving into our first quarter financials, let me just tell you that I feel proud of our strong results. Top line momentum prevailed and has been achieved by the powerful efforts of our agents, building a strong sales cycle, understanding the needs of our clients, while staying focused on excelling in service. The solid performance is still positively impacted by new car sales growth in Mexico, which were up 11% year over year. All in, once again, we've reached a record high in terms of insured units with a total of 5.5 million units or 191,000 additional units versus year end 2023. Tariff adjustments demonstrate an underwriting recovery coupled by a strong financial income that translated into quarterly 38% bottom line growth. As anticipated, we are on track After a strong year with margins and ROE close to long-term objective ranges, we will continue to invest in technology and in our talent. Dedication of Qualitas people has been and will deliver. I would like to thank each one of them for what they do every day. We are encouraged to robust Qualitas DNA and culture in each of our team members, and with the effort of all of them, we strive to continue being recognized as the best. In-class service insurance company. And with that, I'll turn over to Bernardo to discuss the financial details of the quarter. Bernardo, please.