Acquisition Ratio
As acquisition cost increased more than written premiums, Grupo Peña Verde’s acquisition ratio (measured as net acquisition cost as a percentage of net written premiums) grew 79 bps., from 28.3% in 2020 to 29.1% in 2021.
Claims Ratio
As a result of the solid growth in premiums earned, Grupo Peña Verde’s claims ratio (measured as net claims cost as a percentage of premiums earned) stood at 56.7% during 2021, down 198 bps. from 58.7% in 2020.
Operating Ratio
As a result of the consolidation of greater operating efficiencies during 2021, Grupo Peña Verde’s operating ratio decreased 34 bps. in its annual comparison, standing at 8.6% during 2021.
Combined Ratio
As of December 31, 2021, the Company’s combined ratio was 94.4%, 152 bps. lower than in 2020. It is important to remember that the combined ratio is calculated by the sum of the acquisition, claims and operating ratios.
Adjusted Combined Ratio
Grupo Peña Verde’s adjusted combined ratio (measured as the sum of acquisition and claims costs, as well as operating expenses, as a percentage of premiums earned) went from 100.3% in 2020 to 99.3% in 2021 (-100 bps.). It is important to remember that the adjusted combined ratio is presented for comparative purposes with international ratios.
