Equity Snap: Qualitas (Q* MM): A weaker quarter; 2Q26 earnings 6% below estimates

Research evidence excerpt

Equity Snap: Qualitas (Q* MM): A weaker quarter; 2Q26 earnings 6% below estimates

22 July 2026

Equity Snap: Qualitas (Q* MM) Equities Insurance

A weaker quarter; 2Q26 earnings 6% below estimates Mexico

◆ Price competition drives lower premiums and earnings miss; Carlos Gomez-Lopez, CFA

financial income remains strong Head of EM and LatAm Financials HSBC Securities (USA) Inc.

carlos.gomezlopez@us.hsbc.com

+1 212 525 5253

Qualitas (Q* MM, MXN173.28, Hold, TP MXN180.00)

Neha Agarwala, CFA

(Priced as of 21 Jul 2026) Senior Analyst, Fintech & LatAm Financials

HSBC Securities (USA) Inc.

Negative surprise from pricing and volumes: Net income in the quarter was neha.agarwala@us.hsbc.com

MXN1,389m, down 11% sequentially and 1% y/y, and 6% below our estimate and +1 212 525 5418

consensus. After a better-than-expected 1Q26, Qualitas confirmed a worse result in

2Q26 because of aggressive pricing in the market; several players are not passing on

to consumers the higher cost of claims, given that VAT is no longer deductible after

the tax settlement with the government in 2025. The company prefers not to match

the lower prices, thus losing market share and seeing gross written premiums decline

20% sequentially (flat y/y).

Premium growth low in Mexico and the US, higher in Central America: Total

units insured increased 2% y/y, and just 0.9% in Mexico (auto sales were up 5.3% in

1H26); competition is particularly active in fleets. The Central and South American

operations continue to grow fast from a low base, while the US is in runoff (-25% y/y).

Higher combined ratio, still near target range. The combined ratio rose from

92.8% to 95.8% (as per our calculation; the company reports 95.7%). The Mexican

operation has a lower 93.8%, within guidance of 92-94%. The industry is cyclical and