FINANCIAL SUMMARY 2023

WRITTEN PREMIUMS

Written premiums during 2023 totaled Ps.16,147million, representing a 10.55% rise vs. Ps. 14,607 million in 2022; due to the growth registered by Reaseguradora Patria (+12.0%), as well as General de Seguros (10.4%). Reaseguradora Patria continues to follow its expansion strategy in the markets where it operates with the objective of increasing its market share, while the commercial area of General de Seguros continues to aim at closing new business deals.

NET INCREASE OF UNEARNED PREMIUMS RESERVE

Due to an increase in written premiums, unearned premiums reserve presents a 64.5% increase, reaching a Ps.798 million in comparison to Ps. 485 million.

NET ACQUISITION COST

Net acquisition cost grew 18.69% from Ps.3,615 million in 2022 to Ps.4,290 million in 2023. This as a result of the increase that Reaseguradora Patria presented due to the growth in commissions for reinsurance taken out paid to ceding companies

NET CLAIMS COST

Net claims cost pass from Ps.6,747 million in 2022 to Ps.6,883 million in 2023. Representing a 2.01% increase. Likewise, during 2023, the net claims cost on earned premiums to retention was 55.7%, down from 59.5% at the end of 2022.

TECHNICAL RESULT

As a result of the recovery observed in the insurance unit, which was affected in 2022 by increases in the cost of claims, from a technical loss of Ps. 404 million to a profit of Ps. 67,640 million. Technical result stood at Ps. 1,182 million in 2023, 1.73% higher than in 2022.

OPERATING EXPENSES

During 2023, the operating expenses present an increase from Ps.976 million in 2022 to Ps.1,410 million at the end of the year. This was mainly due to the personnel compensation and benefits account, which presented a significant increase of Ps. 284.5 million.

OTHER TECHNICAL RESERVES

Other Technical Reserves (mainly comprised of catastrophic reserves) was Ps.753 million, a contraction of 31.28% against Ps.1,096 million of 2022. This behavior is mainly due to the joint effect of the release of catastrophe reserves by both units, showing a reduction of 11.1% in Reaseguradora Patria and of more than 200% in General de Seguros.

COMPREHENSIVE
FINANCING RESULT

During 2023, Comprehensive Financing Result register an increase of Ps.1,266 million, reaching Ps.1,324 million for full year. This variation was comprised of approximately 72% of Reaseguradora Patria result and a 27% from General de Seguros.

NET RESULT

During full year 2023, the Company experienced a significant improvement in its financial results compared to the same period of the previous year. While in the previous year we recorded a net loss of Ps. 736,356 million, in 2023 we reported a net income of Ps. 242,146 million. This improvement was largely driven by the positive contribution of Reaseguradora Patria, which reported a net income of Ps. 232 million, mainly due to the Comprehensive Financing Result.

INVESTMENTS

The Company’s investments consisted mainly of Ps. 15,303 million in government securities and Ps. 2,820 million in equity instruments. The balance of investments increased 5.91% to Ps. 22,308 million in 2023. In addition, throughout 2023, Grupo Peña Verde continued to implement a methodology that simplifies the selection of investments based on social and environmental criteria, leading to the construction of a more sustainable portfolio.

CASH

Cash liquidity at the end of 2023 increased by 11.4% to Ps. 157 million, compared to Ps. 141 million in the same period of 2022. This variation is in line with the Company’s strategy of directing resources toward areas that maximize their value, specifically toward investment accounts to obtain short-term returns. It is relevant to highlight that, considering the nature of Grupo Peña Verde activities, this change does not significantly influence the evaluation, unlike what could occur in companies in other sectors.

TOTAL ASSETS

The Group’s assets increased 5.6% to Ps. 31,928 million at the end of 2023, compared to Ps. 30,240 million in 2022. This increase was mainly driven by an increase in reinsurers and rebonders, as well as a higher yield on the investment portfolio.

REINSURANCES AND
REBONDERS

Due to reduction in insurance and bonds institutions account, reinsurance and rebonds accounted for Ps.3,465 million at the end of 2023, 8.8% less against the results presented in 2022.

TECHNICAL RESERVES

At December 31, 2023, technical reserves amounted to Ps. 22,063 million, an increase of 6.8% compared to Ps. 20,660 million at the end of 2022. This growth is attributable to an increase in outstanding obligations and risks in progress.