COMMITMENT TO CORPORATE SUSTAINABILITY

SUSTAINABILITY APPROACH
PEÑA VERDE

Sustainability is embedded in our strategy and is reflected in the services that we provide, the way we operate and the management of our investments.


At Peña Verde, we conceive sustainability as “the awareness to develop and generate profitability within an ethical framework of respect for the natural, social, political, cultural and personal environment, through diversity, the spirit of service and the capacity to take care.”

MATERIAL TOPICS

Based on the material topics, five commitments are formulated to guide Peña Verde’s ESG efforts. These commitments are aligned with the 17 Development Goals



Key performance indicators (KPIs), both qualitative and quantitative, are proposed for each commitment, to serve as a guideline for monitoring progress. Under the Peña Verde Sustainability Approach Implementation Plan, 11 operational activities are contemplated, including the validation of around 50 KPIs. The sustainability approach is monitored on a quarterly basis through a Working Group, that meets quarterly, reporting the most relevant events to Peña Verde S.A.B.’s Board of Directors.

STAKEHOLDERS

Grupo Peña Verde constantly promotes the strengthening of environmental, social and corporate governance practices, with the objective of generating a positive impact on all stakeholders, either directly or indirectly. To this end, the Company maintains continuous communication with these groups, as detailed below:



ENVIRONMENTAL
COMMITMENT


Given that our activities are focused on the insurance sector, which is characterized, among other things, for having a considerably smaller environmental footprint compared to other industries, the environmental impact of our operations is not considered significant. However, at Grupo Peña Verde we recognize the importance of climate risks.


In order to reduce our environmental impact through the promotion of practices that minimize the generation of waste and encourage reuse and recycling, Grupo Peña Verde published its environmental policy, establishing Grupo Peña Verde’s commitment to the protection and conservation of the environment, assuming the environmental responsibility derived from its operations and based on the promotion and application of the following environmental principles:

  • Education and awareness on environmental protection and conservation and for the corresponding regulatory compliance.
  • Compliance with environmental regulations.
  • Incorporation of Service Providers with environmental values.
  • Responsible Consumption.
  • Integral Waste Management.
  • Incorporation of environmental criteria in construction and remodeling.
  • Promotion of the Circular Economy.

It is important to mention that the practice of some of these principles is still at an early stage, however, Peña Verde’s objective is to bring it to an integrated level of maturity.


In addition, this policy is supported by:

  • General Law for the Prevention and Integral Management of Waste.
  • Mexico City Solid Waste Law
  • Environmental protection standard NOM087-ECOL-SSA-2002.

In terms of energy consumption, Grupo Peña Verde’s offices use LED lighting to satisfy our illumination needs. In addition, all air conditioners are high-efficiency.


Regarding fuel consumption, the company uses only the amount necessary for transportation equipment and emergency power plants, which also require natural gas.


With respect to water use, only the amount necessary for the operation of the buildings in operation is used, especially for toilets, cleaning and garden irrigation. It is important to note that rainwater collectors are used for garden irrigation, encouraging lower water consumption.

Due to the open spaces and green areas that we have, we can capture rainwater, which is used for irrigation and care of our gardens.

In 2023 we formally began the calculation of the carbon footprint, in Scope 1 and Scope 2, of our two main corporations in Mexico City, San Jeronimo and Patriotismo, buildings that concentrate 77% (32% in San Jeronimo and 45% in Patriotismo) of our workforce. This data will serve as a baseline to establish quantifiable objectives and targets for the reduction of our emissions.

COMPLIANCE

The Company’s management of environmental issues is distributed in three areas, which are described below:

  1. Compliance: in collaboration with the operational and service areas of our sites, it is responsible for verifying and ensuring that applicable legislation is fully complied with.
  2. Human Capital: responsible for promoting effective internal communication and contributing to the deployment of awareness and training campaigns.
  3. Strategy and Sustainability: is in charge of monitoring the above by considering it within Grupo Peña Verde’s Strategy.

SOCIAL COMMITMENT

PEÑA VERDE DAY

Peña Verde Day, an initiative celebrated for the eighth consecutive year, is an opportunity for employees to participate in activities to improve the well-being of the community and the environment

The Peña Verde Consciente Day 2023 edition focused on the environment and included the reforestation of one hectare of forest in collaboration with Asociación Civil Reforestamos México. Reforestamos México is a Mexican organization with the mission of ensuring more and better forests to promote sustainable development, with the objectives of stopping deforestation, increasing sustainable forest management, restoring degraded lands and reforesting cities. Fifty-eight people from Grupo Peña Verde’s work community participated in this reforestation day, planting 860 oyamel and patula pine trees on a hectare of land in San Pedro Nexapa, State of Mexico

Through this action, we impact the following Sustainable Development Goals:

ORANGE DAY

As it does every year, Grupo Peña Verde joined the UNITE campaign, which seeks to eradicate violence against girls and women by raising awareness of this important issue. Thus, from November 25 to December 10, messages in support of this campaign were disseminated in both internal and external media.

Through this action, we impact the following Sustainable Development Goal:

OURTEAM

Grupo Peña Verde believes that the talent, commitment, capacity, discipline and human qualities of its employees are essential to achieve the financial and technical strength that characterizes it in its more than 65 years of history. In this sense, the Company plans with the well-being of its workforce in consideration, promotes and supports a work culture based on values such as integrity, customer focus, teamwork, innovation and personal balance.

As of december 31, 2023, the Peña Verde community consisted of more than 974 employees, distributed in Mexico, London, the United States and Chile.

At the date of publication of this report, Grupo Peña Verde was ranked 44th in the Great Place To Work ranking of companies between 500 and 5,000 employees.

This rate represents the total number of days lost due to absenteeism of any kind, not just as a result of a work-related injury or illness. This includes individual sick days due to minor illnesses (e.g., common cold, fever, and influenza), as well as personal days taken for undisclosed reasons. It excludes scheduled or allowed absences such as vacation, study time, maternity or paternity leave, etc.



100% of our activities are carried out by our employees

• • • • • • • • •

Our administrative employees are hired by Servicios Administrativos Peña Verde, except for Mr. Manuel Escobedo, our CEO, who is the only employee directly employed by Peña Verde S.A.B

• • • • • • • • •

All quantitative information on our team of employees was downloaded directly from the DELSIP program (payroll administration system).


  • Succession plans that ensure business continuity by identifying and developing talent.
  • Training plans to develop in the current position.
  • Mobility and growth among the Group’s Companies, both nationally and internationally.
  • Focus on constant challenges that allow us to strengthen talent in different business units.
  • Functional leadership models.
  • High performance equipment.
  • Focus on competencies and cultural pillars.

PEÑA VERDE EXPERIENCE

  • Social responsibility and well-being projects for our employees.
  • Strong work culture of total respect and transparency.
  • Work groups with high human value and in plural communities.
  • Competitive value proposition based on equity, seeking professional development and life balance.
  • Continuous training and development in all areas of the human sphere, for an integral growth.

HUMAN CAPITAL


At Grupo Peña Verde we have Human Capital processes that promote the development of the people who collaborate with us to promote the achievement of our key results and accelerate the processes of continuous transformation. The following is a summary of the initiatives and programs implemented in this area:

CULTURAL MANAGEMENT PEÑA VERDE

Grupo Peña Verde’s culture is based on our cultural pillars (see page 8), which are designed to guide our behavior to achieve our strategic plan.

In order to provide cultural training within Grupo Peña Verde and generate skills and behaviors aligned with our cultural pillars, we have a group of people who have been certified in the methodologies used to promote the Peña Verde culture. These people are known as Cultural Facilitators and during 2023 they were enabled to provide courses in hybrid format to new entrants and reduce cultural gaps in the areas of the Group.

CHANGE MANAGEMENT OFFICE

In order to increase Grupo Peña Verde’s organizational agility, based on our ability to adopt and use the new ways of working implemented, we have implemented an Internal Change Management Office to generate a predisposition to change among all the people in the Group.

The Change Management Office is responsible for driving the Group’s organizational change management through the establishment of processes, policies, the development of change managers and the empowerment of leaders.

The capacity of this office is based on the certification of 25 people from the different Business Units as change managers and their enablement by mentoring and field accompaniment to apply Change Management tools in the strategic projects of the Group and its organization.

As a result of these efforts, in 2023 we obtained an organizational change management maturity level of 3.4 out of 5 certified by Prosci, a world leader in the area. This score certifies our ability to manage change in a standardized way across multiple projects, to integrate these capabilities with project management services, and to enable change initiative leaders to communicate effectively, build change coalitions and manage resistance.

PERFORMANCE EVALUATION

In 2023, we announced the transformation of our 360° assessment, moving from a traditional competency assessment model to a model focused on feedback, in which people receive feedback from their peers and internal clients on how the person demonstrates the culture and competencies relevant to their role in alignment with the achievement of the Group’s key results. This information serves as input for a feedback session between leaders and their direct collaborators, in which they can analyze the information provided by the people who constantly collaborate with the person under evaluation and, based on this analysis, identify the person’s strengths and areas of opportunity.

The focus of this new process moves away from the traditional view of assigning a score to the person under evaluation and instead focuses on providing constructive feedback to promote awareness of each person’s areas of opportunity, allowing them to take accountability for actions that will help to improve their performance.

As a result of this process, during 2023 we ensured that at least 95% of the participants had a feedback session based on this methodology.

TRAINING AGENDAS

Based on the results obtained by each person in the 360° evaluation process, together with their direct leader, people establish development priorities to reduce the identified performance gaps. Based on the defined priorities, each person has the possibility of requesting training (courses, on-the-job actions, learning new processes, etc.) to improve their performance. In addition, for each learning resource requested, people must establish SMART objectives that demonstrate how they will put the learning obtained into practice.

The training agendas are a useful and practical way to concentrate and follow up the training and people and encourage the theory to be applied in the operation of the people, resulting in an average of 26.8 hours of training in full-time employees and an average investment amount of Ps.7,476,654 MXN per year.

MENTORING PROGRAM

With the purpose of having leaders with mentoring skills to accompany and guide other leaders of the organization through their experience, during 2023 we certified 18 internal people in the mentoring role, and during the year they provided formal mentoring sessions to 22 people, obtaining a total of 93 hours of mentoring per year through at least 6 mentoring sessions between each mentor and mind.

This program generated multiple benefits, such as the organizational recognition of mentors and mentees, the personal and professional development of both roles, the generation of interpersonal connections between people from different areas and the contribution to the achievement of key results due to the professional development of people.

WELLNESS PROGRAMS

At Grupo Peña Verde we are committed to the creation of psychologically safe workspaces that promote the wellbeing of the people who work with us. For this reason, we provide a wellbeing program for our community that consists of the following elements:

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Support line: telephone line that provides emotional, legal, financial, nutritional and leadership counseling. It is applicable to employees and direct family members.

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Digital Application: contains wellness tips and media with support line. It is applicable to employees and direct family members.

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Wellness portal: offers information about family health, lifestyle, sleep and rest, stress management, healthy alignment, tools to identify habits to improve, among others. It is applicable to employees and direct family members.

Imagen 4

Medical helpline: offers a medical advice line, which provides guidance on personal health issues. It is applicable to employees and direct family members.

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Conferences: during the year we offer different conferences to promote healthy habits.

Imagen 6

Communication campaign:throughout the year we have a communication campaign that offers advice and useful information to maintain healthy habits.

All of the aforementioned resources are extensible to collaborators and direct family members.


TURNOVER RATE

During 2023, 96 employees left the Company and 245 new employees joined, representing a net of 10 additional employees. Thus, the consolidated turnover rate during 2023 was 23.29% and the consolidated hiring rate was 24.49%.

The 2023 turnover rates for General de Seguros, General de Salud, Reaseguradora Patria, Servicios Administrativos Peña Verde and CCSS were 25.46%, 29.24%, 12.47%, 14.99% and 36.36%, respectively; while the hiring rates were 23.43% for General de Seguro, 22.86% for General de Salud, 22.86% for Reaseguradora Patria, 22.09% for Servicios Administrativos Peña Verde and 29.55% for CCSS.

It should be noted that the turnover and hiring rate in CCSS is related to the fact that, in general, medical collaborators are admitted for specialization studies. This generates a constant recruitment of personnel in the organization.

During the year, Grupo Peña Verde’s turnover and hiring rates by gender, age group and region were as follows:

Imagen 1 Imagen 2
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Grupo Peña Verde’s Diversity and Inclusion Policy establishes its firm commitment to providing equal employment opportunities for men and women.

At Grupo Peña Verde, we uphold the philosophy that professional advancement should derive from the individual effort and competence of each employee.

BREAKDOWN OF EMPLOYEES BY GENDER




TRAINING

Grupo Peña Verde has implemented a Training Policy that establishes guidelines to promote employee training in all its subsidiaries. In this context, the policy emphasizes that each employee is primarily responsible for defining and complying with his or her own Training Agenda.

In the training chain, immediate supervisors and area managers are expected to provide the necessary support during the training process of the employees under their supervision. The Training and Organizational Development Area is responsible for monitoring and verifying the progress of training programs, ensuring compliance with guidelines and alignment with the objective of maintaining business continuity through succession and career plans.


The various training opportunities available to Grupo Peña Verde’s employees include:

Imagen 1

Training Agenda:Grupo Peña Verde and external entities organize courses, workshops, seminars, certifications and other training initiatives.

Imagen 2

Company and Job Induction Program: Provided to new employees as part of their integration, offering them a general orientation to the Group and initial training related to their position.

Imagen 3

Regulatory and Corporate Governance Training: This involves mandatory courses, scheduled at least once a year, on current compliance and corporate governance regulations. These courses cover topics such as prevention of money laundering and financing of terrorism, protection of personal data, code of ethics, contracts with third parties, regulatory reports, among others.

Imagen 4

Additional Training: Includes additional projects, such as language programs; Accountability, your best version in action (a system of culture oriented to responsibility and accountability), or any optional training offered by the company.

Imagen 5

Transition Programs: This type of training is provided in situations of personnel movements, either due to changes in functions, departures of collaborators or retirements.

AVERAGE HOURS OF TRAINING DURING 2023

ACCOUNTABILITY, YOUR BEST VERSION IN ACTION

Over the course of 2023, Grupo Peña Verde persisted in its drive towards cultural transformation, maintaining its support for the “Accountability” culture system, focused on responsibility and accountability.

PROTECTING THE HEALTH OF OUR EMPLOYEES

Recognizing the importance of an adequate balance between work, personal and social life for the physical and mental well-being of employees, and therefore for their performance, Grupo Peña Verde has devoted considerable efforts over the past seven years to safeguard and promote the various dimensions of health.

As a reflection of this, during 2023, 13 employees (7 men and 6 women) requested parental leave and returned to work at the end of their leave (return to work rate = 100%).

Male employees on parental leave during 2023:

Female employees on parental leave during 2023:

Employees who returned to their activities at the end of their leave of absence:

In addition, of the total number of employees who returned to work after parental leave (as of December 2023), 12 continued to be part of the Peña Verde community during the 12 months following their return (retention rate = 71%)

Among the benefits provided to employees, the company facilitates access to various health institutions, such as:

  • Access to the Social Security Institute
  • Flexible payroll deduction scheme in the event that other health insurance policies are purchased.

Thus, Grupo Peña Verde offers its employees the option of accessing various health institutions, both for work and personal issues.

In addition, employees have at their disposal the “Wellness Line”, a telephone counseling service that offers support in emotional, nutritional, administrative, legal and team management issues. Grupo Peña Verde also provides access to therapies as initial support in situations of emotional problems.

In addition, as part of the initiative to promote health prevention, various activities are carried out on a voluntary basis, among which the following stand out:

During June 2023, the NOM 035 survey was completed, with the results we will begin to define the action plans.




Health protocols

To safeguard the health and well-being of its employees, the Company has established various protocols that are detailed in an internal document distributed to all team members. This approach aims to ensure that all employees are familiar with the guidelines to follow and the procedures to adopt in case of eventualities, thus contributing to their well-being.

In addition, as part of their working day, all employees have access to the health services offered by the CCSS department. In order to encourage continuous improvement, the department also collects feedback from employees on the effectiveness of the service and prepares a corresponding report.

HOW ARE THE IRISKS TO WHICH EMPLOYEES ARE EXPOSED IDENTIFIED?

  • In the emergency of an accident, information on the probable causes is collected directly from the employee for recording and investigation.
  • The basic causes of the risk are investigated in coordination with the personnel, their direct supervisor and the health and safety coordination, in order to prevent future accidents.
  • In the event that the accident has been attended by the IMSS, the Payroll area will advise the employee to fill out the notice to qualify probable occupational risk using the form provided by the IMSS.

WHO IS RESPONSIBLE FOR PROVIDING MEDICAL CARE?

CCSS physicians will be responsible for evaluating the type of medical service needed by the employee, according to the CCSS Medical Care Traffic Light (used by the IMSS), as well as the degree of urgency. In addition, they will provide the required medical care, guide the employee on self-care actions and provide the necessary medications

MEDICAL GUIDANCE TRAFFIC LIGHT

DESCRIPTION OF THE PROCESS

  1. As a first contact for Medical Telephone Counseling, employees should contact the CCSS through the telephone number established in the internal document. If, due to the seriousness of the injury, the employee is not able to make the call or requires immediate medical attention, this will be done at the place of the accident (aligned with the Medical Orientation Traffic Light).
  2. The physician will determine if the employee needs to be transferred to the Family Medicine Unit (UMF) or to the IMSS emergency room. In this case, the physician will notify the contact that the employee has provided within the Integral Human Capital System (SICH) to come to our facilities to accompany and transfer the employee. If the employee wishes, the transfer will be made to a private hospital, but in this case the expenses will be at the employee’s expense.
  3. The treating physician will make the record in the “Medical Consultation Report” as a closure of the medical attention and/or assessment provided, and will notify by e-mail to the Organizational Development Specialist the cases in which there has been an emotional or psychological affectation, in order to follow up with the employee.
  4. the report is strictly confidential and will be kept in the control file of the CCSS (department that provides the medical service).

EMPLOYEES’ SAFETY

Grupo Peña Verde has implemented a security awareness program that addresses both cybersecurity and physical security.

With regard to physical security, the company uses various media, such as newsletters and webinars, to disseminate topics selected from the periodic analysis of open sources conducted by internal staff, with the collaboration of vendors specialized in the preparation of this type of reports.

In addition, the company provides human rights training to all Industrial Banking Police security personnel assigned to its facilities.

In 2023, several initiatives were implemented for Grupo Peña Verde employees, including the following:

  • Educational Safety Moments – Platform
  • 2nd Safety Week - Nov 2023
  • Internal Phishing Exercises


EXECUTIVES

In Grupo Peña Verde, the internal hierarchy is structured in levels 1 to 18. Within this classification, the Group’s senior executives are considered to be those located in levels 16 to 18, which include area directors, subsidiary directors and corporate directors, respectively.

As of the date of publication of this report, the Group’s senior executives are as follows:

MANUEL SANTIAGO ESCOBEDO CONOVER

CEO of Grupo Peña Verde


Career at Peña Verde:Mr. Manuel Escobedo has been CEO of Peña Verde since 2013, after serving as CEO of Reaseguradora Patria for 10 years. Mr. Escobedo joined Peña Verde in 1997.

Academic and Professional Background: : Mr. Escobedo holds a law degree from Mexico Autonomous Institute of Technology (ITAM, for its Spanish acronym), graduated with honors, and a Master in Business Administration from the Ecole des Hautes Etudes Commerciales (HEC) in Paris. After collaborating as a lawyer in the Noriega and Escobedo law firms, Mr. Escobedo has dedicated most of his career to work in the Reinsurance industry, highlighting his participation as President of the Mexican Association of Insurance Institutions (2017-2020), an organization of which he has been a member since 1998. Also, he has served as a Director of the Board and/or as member of certain committees in the following organizations: Institute of International Finance, Mexican Association of Guarantee Institutions, Mexican Business Coordinating Council (CCE, for its Spanish acronym), Alternative Insurance Company, among others.


RENÉ GONZÁLEZ GONZÁLEZ

General Manager of Transformation and New Businesses


Career at Peña Verde: : Mr. René González has been Corporate Director of Peña Verde’s Business Support and Transformation Division since January 2020. Prior to his appointment, he performed as Head of Planning and Chief of Staff (2018 to 2020).

Academic and Professional Background: With a degree in Financial and Actuarial Economics from ITAM, Mr. González has experience in both private and public sectors. In the private sector, he worked at MetLife, where he was promoted from financial risk specialist to head of Strategic Planning and later became Director of Valuation, Planning and Strategic Projects at the Mexican Department of Labor and Social Welfare.


ANDRÉS HERNANDO MILLÁN DREWS

Business Transformation and Financial Strategy Unit Director


Career at Peña Verde:Mr. Millán joined Peña Verde as Vice President of Peña Verde’s Asset Management and Financial Strategy Division on November 1, 2019.

Academic and Professional Background: With a degree in Business Administration from the Universidad de los Andes (Colombia) and a Master in International Finance from the University of Amsterdam, Mr. Millán has a vast experience in the financial sector, including work in investment funds and development banking in Colombia; a number of positions in Rabobank International of the Netherlands where he served as Vice President for Southern Europe and Latin America. It is also worth mentioning his successful career at IFC, member of World Bank Group, where he climbed various positions in the Investment Department until becoming Chief Investment Officer.


FRANCISCO FERNANDO MARTÍNEZ CILLERO

Reinsurance and Insurance Business Unit Director


Career at Peña Verde:Francisco Martínez has an ascending career at Reaseguradora Patria, where he joined in 2011 as an intern/actuarial analyst, served as a quality specialist (as a collaborator of Servicios Corporativos Peña Verde) and in 2013 assumed administrative functions as Director. In February 2019, he was appointed Deputy Chief Executive Officer and in April 2021 he assumed the position of Chief Executive Officer of Reaseguradora Patria.

Academic and Profesional Background: Mr. Martínez holds a degree in Actuarial Science. He has spent most of his career at Peña Verde and is also a founding partner and Chairman of the Board of Directors of Fondo de Energía Ilimitada S.A.P.I. de C.V.; Fondo Revolvente 2MAZ S.A.P.I. de C.V.; and RIKAFRAN S.A. de C.V.


FERNANDO FRANCISCO MIGUEL ÁLVAREZ DEL RÍO

CEO of the Insurance Unit


Career at Peña Verde: Mr. Álvarez joined Peña Verde as CEO of General de Salud in 2017 and as of 2021 he serves as CEO of the Insurance Division.

Academic and Profesional Background: Mr. Álvarez holds a bachelor’s degree in economics from Trent University and a master’s degree from McMaster University. Fernando Álvarez has more than 10 years of experience in the insurance industry, having held strategic roles within Mexico’s Secretariat of Health and the National Insurance and Bonding Commission. For 4 years he served as CEO of General de Salud at Grupo Peña Verde.

REMUNERATION

Grupo Peña Verde has established three compensation policies (bonuses) with the purpose of recognizing and rewarding the effort, commitment and productivity of its employees. These policies have been designed according to the specific operations of its subsidiaries.

PEÑA VERDE ADMINISTRATIVE SERVICES

PERFORMANCE BONUS

The Human Capital Area is responsible for managing the process of applying the bonus policy, which is subject to the approval of the Evaluation and Compensation Committee.

This bonus is applicable only to employees with permanent contracts and with a minimum seniority of 6 months.

The bonus is calculated in February of the year following the period evaluated, and the payment is made no later than the second half of April of the same year. In this regard, the amount of the performance bonus is linked to the:

  • The hierarchical level of the employee
  • Result obtained in the performance evaluation
  • Salary recorded during the month of December of the evaluated period.

It’s important to highlight that:

  1. The maximum amount is aligned to the practice of the sector, based on information provided by an external party, which must be specialized in competitiveness studies of remuneration;
  2. Penalties are applied in the event that the Ethics Committee or the Legal Department has issued an administrative report against the employee being evaluated.
HIERARCHY

COMPONENTS OF THE PERFORMANCE EVALUATION


EXTRA BONUS

Only 5% of the total workforce will be considered as candidates for a bonus. These employees, based on their Performance Result and Affinity Result, must be placed in quadrants 6 and 9 of the following Talent Matrix:


Performance is evaluated based on the following factors:

  • Compliance with strategic and area management indicators aligned with key results.
  • Performance evaluation by adherence to culture and/or competency pillars
  • Rating of Strategic Area Initiatives

The determination of the Affinity Score is based on adherence to the job profile and cultural pillars.

REASEGURADORA PATRIA


UNDERWRITING BONUS

Grupo Peña Verde recognizes and rewards the effort and commitment of its employees through a signing bonus, which is calculated on the basis of two key indicators. Firstly, the budgetary compliance of bonuses to retention is evaluated, which demonstrates the capacity to effectively manage the assigned resources. Secondly, the budgetary compliance of the technical result to retention is analyzed, thus reflecting the performance in technical and operational aspects. Each underwriter is evaluated at the company level and also within his or her area of responsibility, encouraging interdepartmental collaboration and the joint growth of all areas.

This evaluation system ensures that each subscriber contributes both to the individual value of his or her area and to the overall value of the company. In an equitable approach, each level of compliance represents 50% of the subscriber’s total bonus. In order to ensure a sustainable reward, the weighted performance is multiplied by the bonus months and distributed over a 3-year period, dividing the bonus into thirds that are paid annually.

By fostering excellence in performance and collaboration, Grupo Peña Verde rewards the efforts and dedication of its employees in a fair and sustainable manner. This practice not only motivates employees, but also contributes to creating an environment conducive to joint growth, strengthening the strength and overall success of the organization.

GENERAL DE SEGUROS

The Human Capital Area is responsible for the administration of the commercial incentive process, while the Sales Department is in charge of reporting on the fulfillment of the commercial goals that serve as the basis for the allocation of such incentive.

In order to participate in this compensation scheme, the employee must be active at the time of payment.

For Branch Managers, Regional Directors and Zone Managers, the calculation is made considering the employee’s last monthly salary in relation to the evaluated period, and the incentive is allocated on a monthly basis.

As for Office Managers and Commercial Executives, the incentive is calculated on the basis of the number of monthly policies and is assigned on a semi-annual basis.

The approval and authorization of the amount of the bonus for each employee will be made by the Human Capital Management and the Sales Management of the Insurance Division. The payment of such bonus will be made during the second fortnight of the month following the evaluated month.

It is important to mention that, on an annual basis, the Sales Management establishes the monthly sales budget, which is submitted to the approval of the General Management of the Insurance Division. The following metrics are applied to this budget, for each of the following employee segments:


Office Managers and Sales Executives

The incentive is paid from 100 policies per month per collaborator (with no growth limit) and is subject to the fulfillment of the assigned sales budget; payment is made per policy, Ps.50 if it comes from a current agent and Ps.100 if it comes from a recruit.


Branch Manager

The incentive is calculated each month when the sales budget of the assigned offices is met, as well as when the distribution channel is developed through the attraction of productive intermediaries. The maximum amount is 50% of the monthly salary and the criteria for its payment are as follows:

To comply with the monthly budget (original goal) with the following weighting:

Comply with the canal development budget for your region:


Regional Directors and Zone Managers

In order for the Regional Director and the Zone Manager to receive their commercial incentive, 75% of the managers in their zone must have credited their quarterly incentive at least once with 60% of the target amount.

In addition, budget compliance must be exceeded in the following areas:

  • Half-yearly sales allocated by industry in their region

Non-compliance per line of business will result in a penalty of 15% of the incentive for each line; for example, non-compliance in 2 lines of business will result in a penalty of 30% of the incentive, even if there is an overall surplus.

  • Channel development in their region

Sales obtained through recruited agents, measured in net premiums earned.

The amount of the incentive to which the Regional Director and the Zone Manager may be entitled is 1.5 times the monthly salary.