EarningsQ3 2026 Earnings Report
MX:Q Q3 2026 EPS Results
Actual EPS$4.46
Consensus EPS$3.60
Beat/MissBeat by +$0.85
One Year Ago EPS$4.33
MX:Q Q3 2026 Revenue Results
Actual Revenue$19.69B
Expected Revenue$18.54B
Beat/MissBeat by +$1.15B
YoY Revenue Growth+8.80%
Earnings Announcement Details
QuarterQ3 2026
Date10/20/2026
TimeAfter Close
Conference CallTuesday, October 20, 2026
MX:Q Upcoming Earnings
Qualitas Controladora I's next earnings date is estimated for January 28, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
MX:Q Q3 2026 Earnings Call
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Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive. Management reported 7.7% written premium growth, record insured units, a 92.7% combined ratio, 27.5% period ROE, strong capital adequacy, improving claims and service indicators, and significant growth across Latin America. These positives outweighed the challenges from aggressive pricing, VAT-related claims costs, heavy equipment weakness, the US commercial runoff, lower year-to-date financial income, and expected fourth-quarter written premium moderation. Management nevertheless maintained its full-year objectives and described the business as well positioned for sustainable growth.Company Guidance
Written Premium Growth Ahead of Market
Written premiums grew 7.7% for the first nine months of 2026, reaching 57.7 billion pesos, in line with expectations and ahead of the market. Management said the growth was achieved with healthy underwriting profitability and a well-controlled loss ratio.
Record Insured Vehicle Base
Insured units reached a new all-time high, surpassing 6.2 million vehicles during the quarter. Management also noted that insured units were up close to 100,000 versus last year, despite a decline of close to 70,000 motorcycles.
Healthy Underwriting Profitability
The combined ratio was 92.7% for both the quarter and the first nine months, improving from the previous quarter and remaining within the company's 92% to 94% long-term target range.
Loss Ratio Within Target Range
The loss ratio was 63.4% for the quarter and 63.6% year to date, within the sustainable target range of 62% to 65%. Management said favorable claims frequency, lower vehicle theft, improved recovery rates, and efforts to contain average claims costs helped offset higher claims costs associated with the VAT treatment.
Improved Claims and Recovery Metrics
Quarterly claims frequency was 6.8%, down 31 basis points from the same period last year. Vehicle theft cases declined 17.1% year to date, while Qualitas' recovery rate reached 49.9%, or 610 basis points above the rest of the industry.
Strong Return on Equity and Net Income
Net income reached 1.8 billion pesos in the quarter and 4.7 billion pesos for the first nine months, with net margins of 9.5% and 8.2%, respectively. ROE for the period was 27.5%, while 12-month ROE was 17.2%.
Robust Capital Position
Regulatory capital stood at 6.9 billion pesos, with a solvency margin of 17.7 billion pesos and a solvency ratio of 357%. Management described the capital position as robust and sufficient to support operations, absorb potential market volatility, and continue investing in strategic priorities.
Investment Portfolio Contribution
The predominantly fixed-income investment portfolio continued to contribute to earnings. The 54.8 billion peso portfolio was approximately 86% fixed income, with an average consolidated duration of 2.7 years and a yield to maturity of 8.5%.
Attractive Mexican Portfolio Spread
The Mexico portfolio's yield to maturity was 9.1%, compared with a 6.5% reference rate, representing a spread of approximately 260 basis points. Management stated that the portfolio's duration strategy positions it to benefit from declining interest rates.
ETF Rebalancing Generated Realized Gains
Qualitas realized approximately 166 million pesos in accumulated gains by strategically rebalancing a portion of its ETF positions. The realized amount represented 7.7% of the unrealized gains held in the ETF portfolio at the end of September.
Strong Mexican Market Position
According to the latest available AMIS figures, Qualitas held 33.3% of the Mexican auto insurance market by written premiums, 36.1% by earned premiums, and 43.8% of the heavy equipment segment. The company accounted for 59.1% of the underwriting results generated by the total auto insurance market.
Traditional and Financial Institutions Growth
The traditional segment represented approximately 60% of total written premiums and grew 4.8% during the quarter and 5.2% year to date. The financial institutions segment represented approximately 35% of written premiums and grew 14.6% during the quarter and 15.1% year to date.
Positive New Vehicle Sales Environment
New light vehicle sales in Mexico grew 5% during the first nine months, including a 4.5% increase in the third quarter. Management said this provided a constructive backdrop for new insurance production. Chinese brands represented close to 12% of new car sales, while the percentage of new car sales financed increased to close to 70% from a historical 50% to 60%.
LATAM Expansion Momentum
Written premiums across Latin America grew 45.1% in US dollar terms during the quarter and 41.7% year to date, excluding foreign exchange effects. In Mexican peso terms, LATAM written premiums grew 36.5% during the quarter and 27.1% year to date.
Progress in Colombia
Qualitas Colombia had 21 offices, more than 1.95 thousand agents, 21.3 million US dollars in written premiums year to date, and approximately 50,000 policies issued since operations began. Management said the operation was delivering above planned performance and showing meaningful improvements in agent productivity.
Service and Customer Experience Improvements
All key service and NPS indicators improved versus a year ago and reached their highest levels in the past five years. The valuation and repair process, previously identified as the weakest link, reached 90% PS, an improvement of more than 20 percentage points versus two years ago.
Technology and Artificial Intelligence Investments
Qualitas continues investing in technology, talent development, training, and operational improvements. The company is combining more than 32 years of specialized data and operating experience with AI-driven tools across underwriting, claims valuation, risk prevention, and fraud detection.
Vertical Integration Supporting Claims Costs
Vertically integrated businesses in windshields, spare parts, and other vehicle components are helping improve procurement efficiencies and mitigate inflationary pressures while preserving service standards.
Recognition for Service Excellence
Qualitas was recognized in Mexico as Las Aseguradoras de AL by insurance agents for the seventh consecutive year. Management said the recognition came directly from agents who interact with the organization and serve policyholders.
Launch of Más Salud
Qualitas plans to launch Más Salud in the fourth quarter, entering the group health insurance market for small and medium-sized businesses. The product will combine preventive health care and major medical expense coverage through a closed hospital network, initially in Mexico City, with plans to expand nationwide by 2028.
Long-Term Health Insurance Opportunity
Qualitas Salud is completing its third year and is being adjusted toward a model intended to serve the 90% of the Mexican population without private medical coverage. Management said the business is a long-term opportunity that could potentially become as large as Qualitas Auto over a 10- to 20-year period.
Full-Year Objectives Reaffirmed
Management reaffirmed expectations for full-year written premium growth in the mid to high single digit range, a combined ratio within the 92% to 94% long-term target, and ROE above 20%.
MX:Q Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed