Written Premiums
Supported by the growth in written premiums by Reaseguradora Patria (+20.4%) and General de Seguros (+19.4%), the Group’s written premiums increased 17.0%, from Ps.10,226 million in 2020 to Ps.11,963 million in 2021. This growth was the result of the continuity of Reaseguradora Patria’s strategy to strengthen its market share in the regions where it operates, as well as the appropriate follow-up that the commercial area of General de Seguros gave to several new businesses and underwriting of all quoted businesses.
Net Increase of Unearned Premiums Reserve
In line with the higher amount of written premiums, the unearned premiums reserve amounted to Ps.696 million, increasing 66.7% compared to the Ps.418 million obtained in 2020.
Net Acquisition Cost
Net acquisition cost increased 23.5%, from Ps.2,313 million in 2020 to Ps.2,857 million in 2021, mainly due to the increase in this item in Reaseguradora Patria (as a result of a higher amount of reinsurance commissions). In 2021, net acquisition cost as a percentage of net written premiums stood at 29.1% vs. 28.3% in 2020.
Net Claims Cost
During 2021, net claims cost increased 13.7% compared to Ps.4,545 million in 2020, reaching Ps.5,169 million, given the higher claims recorded in both Reaseguradora Patria (+Ps.529 million) and General de Seguros (+Ps.307 million). However, net claims cost as a percentage of net premiums earned decreased from 58.7% in 2020 to 56.7% in 2021.
Technical Result
As growth in written premiums offset higher claims and acquisition costs, technical income rose 22.7%, totaling Ps.1,087 million in 2021 vs. Ps. 886 million in 2020.
Other Technical Reserves
The net increase in other technical reserves (mainly comprised of catastrophe reserves) reached Ps.914 million, 2.9% lower than the Ps.941 million recorded in 2020. The growth in other technical reserves was mainly due to the generation of reserves by Reaseguradora Patria, following the higher written premiums.
Operating Expenses
As a result of the modernization and improvement projects carried out by General de Seguros during 2021, the Group’s operating expenses increased 12.5% from Ps.912 million in 2020 to Ps.1,026 million in 2021. However, operating expenses as a percentage of written premiums were 8.6% in 2021, comparing favorably with 8.9% in the same period last year.
Comprehensive Financing Result
As a result of the greater stability and better performance of the equity markets, given the positive effect generated by the application of vaccines globally on the behavior of the pandemic, the comprehensive financing result for 2021 reached Ps.1,352 million, 80.3% higher than the gain recorded in 2020.
Net Result
During 2021, the Company recorded a net income of Ps. 430 million, which compares favorably with a net loss of Ps.196 million in 2020. This result was driven by the performance of the portfolio within the equity markets and higher written premiums.