Glossary

Includes commissions and compensations paid to agents as well as fees paid to Financial Institutions for the use of their facilities (UOF).

Acquisition Cost ÷ Net Written Premiums.

Mexican Association of Automotive Distributors.

Compound Annual Growth Rate = [(End of Period Figure / Beginning of Period Figure) ^ (1/ Number of periods)].

Acquisition Ratio + Operating Ratio + Loss Ratio.

National Insurance & Bonds Commission, the regulator of the insurance sector in México.

Environmental, Social, and Governance.

Financial branch of major automakers and Financial Groups that provide automotive financing.

Includes costs incurred in the payment of claims: third party liability, theft, repair costs, among others.

Loss Cost ÷ Net Earned Premiums.

Policies with a term greater than 12 months. They are typically issued for the automobiles sold on credit.

Written premiums registered as income throughout the duration of a policy.

Net income/written premiums.

Written premiums less the portion ceded to reinsurance.

Includes expenses incurred in by the company in its regular operations.

Operating Expenses ÷ Net Written Premiums.

operating income / earned premiums.

Administrative fee charged when the policy is issued and recorded as an income in operating expenses.

Employee profit sharing.

Records the portion of sold policies which will be paid in installments.

Financial penalty imposed to policyholders that choose to pay premiums in installments.

Is the minimum equity level that an insurance company should maintain, according to legal requirements.

Premiums corresponding to policies underwritten.

Quálitas Costa Rica

Quálitas México

Quálitas El Salvador

Quálitas Perú

Quálitas Insurance Company.

Stockholders’ equity – Regulatory Equity Requirement.

Solvency Margin ÷ Regulatory Equity Requirement.

Fees paid to Financial Institutions for the use of their facilities.

(Oficina Coordinadora de Riesgos Asegurados)