GRI 102-14, 102-15
At Quálitas, we have a firm commitment to contribute towards sustainable development, facing economic, environmental, and social challenges under a strategy of value generation.
In 2017 we faced several situations which affected our operation. Such events include, vehicle robbery and foreign exchange rate volatility impacting the cost of automotive spare parts and the decrease in sales of new cars in Mexico. On the other hand, the interest rate increases helped us obtain financial revenues and end this year with excellent results.
Within the year, we managed to issue premiums for more than 33,000 million pesos and recorded revenues (earned premiums) over 28,600 million pesos. This translates into having more than 3.8 million insured units and a market share in the automotive insurance of 31.3% in Mexico.
of market share
combined ratio
It is important to highlight that during 2017 we achieved profits of 2,064 million pesos, an increase of 58.7%, vis-à-vis, 2016 net income. This resulted in an excellent ROE of 29.4%, which means that approximately every 2.5 years, the stockholder’s equity would be doubled.
Our insurance operation outside Mexico has continued to develop and consolidate its operation. Non-insurance subsidiaries continue to give us advantages in costs control and help us have a more efficient operation in the insurance companies. All these subsidiaries presented profits in the year.
During 2017, we opened 22 new Quálitas Development Offices (ODQs) in Mexico. This growth in facilities directly impacted the creation of employment sources.
For Quálitas, it was a priority that the 1,534 people who joined our staff in 2017 experienced our culture of wellbeing, development, and professionalization at work. For this reason, the contents of Quálitas University were strengthened, which is our maximum initiative to increase their skills, promote their growth and personal fulfillment.
We want to guarantee welfare for all our stakeholders and to contribute towards the development of a better insurance and road safety culture so as to maintain a generalized growth in the locations where we operate. Our interest is to achieve these objectives based on ethics and integrity.
Under this condition, in October 2017 the Board of Directors approved the new Code of Ethics and Conduct, which is the governing document that establishes the values and operating rules applicable to the board members, employees, representatives and collaborators of Quálitas, regardless of their activity or geographical location.
ROE
employees in 2017
We continue working on projects that allow us to contribute to the sustainable development of society, to improve our service, and to implement measures allowing us to reduce costs; this in order to consolidate the position of Quálitas in the market and maintain a competitive position. Some examples of this are: body shop certifications, express adjustment, call center automation and the use of satellite tracking devices and tools to prevent collisions and vehicle robbery as a part of our risk management.
I reiterate Quálitas commitment to the implementation of the 10 Principles of the United Nations Global Compact, which include human rights, labor, environmental and anti-corruption issues.
The stock price also had a very good performance, increasing 24.4% during the year. Additionally, I am very pleased to inform you that in October we were integrated into the Dow Jones Sustainability MILA Pacific Alliance Index. This is a very important indicator which confirms that our sustainability strategy is in the right direction.
I believe that the company is very well positioned to continue growing and developing. We are hoping for upcoming years to be good and to have more moderated growth, but higher profitability.
Joaquín Brockman L.
Chairman of the Board of Directors
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