Acquisition Ratio

Grupo Peña Verde's acquisition ratio, measured as net acquisition cost divided by net written premiums, expanded 100 bps. compared to 2019, standing at 28.3%, as acquisition costs (27.9%) outpaced written premiums (24.5%).

Claims Ratio

The claims ratio (net claim costs divided by premiums earned), contracted 90 bps. YoY to 58.7%, due to slightly stronger growth in premiums earned compared to claim costs.

Operating Ratio

The 2.1 pp. contraction of the operating ratio, which was 8.9%, reflects the efficiencies realized towards a leaner cost structure to mitigate the impact of the pandemic.

Combined Ratio

Grupo Peña Verde's combined ratio, which is the sum of the 3 previous ratios, was 95.9% (-2.0 pp. YoY).

Adjusted Combined Ratio

The adjusted combined ratio (combined ratio divided by premiums earned) is reported for comparative purposes with international ratios. In 2020, Grupo Peña Verde posted an adjusted combined ratio of 100.3%, a 2.3 pp. contraction attributable to a higher premiums earned.