Dear shareholders and investors:

I am honored to share with you the Company's performance for 2020, a year in which, despite the multi-faceted challenges brought on by the COVID-19 pandemic, we achieved an annual increase of 25.1% in written premiums, surpassing the Ps. 10 billion mark for the first time in our history.

The main driver of this result was the resilience shown by all of our subsidiaries, as their combined strengths allowed us to weather this particularly testing cycle with stability. In this regard, the strategy followed by Reaseguradora Patria, geared toward broadening its commercial outreach in the markets where it operates, was especially noteworthy, as it fueled a solid 41.9% annual growth in written premiums, totaling Ps. 7,311 million. On the other hand, General de Seguros’ performance remained practically unchanged on an annual basis in terms of written premiums, amounting to Ps. 2,551 million.

Although the Company posted a Ps.132 million net loss in 2020, this was largely attributable to two non-cash effects: i) the increased booking of reserves at Reaseguradora Patria on the back of strong premium growth; and, ii) the fluctuations on the financial markets where we invest, resulting from the heightened uncertainty triggered by the pandemic. Nevertheless, in light of the many headwinds we faced in 2020, we are satisfied to have offset more than 84% of the Ps. 861 million loss recorded in the first quarter of the year.

On the financial front, the Company’s adjusted net worth increased 8.1% year-over-year to Ps. 8,838 million. In addition, AM Best (the world’s top credit rating agency focused on the insurance industry) ratified the credit ratings of Peña Verde and its subsidiaries (Reaseguradora Patria, General de Seguros and General de Salud), attesting to our sound financial health.

We are convinced that the sum of initiatives we have disclosed throughout this report will contribute to greater value creation for the benefit of our shareholders, investors, employees, and other stakeholders.

Wrapping up, I would like to thank our employees for their enormous commitment, as they are the backbone of our operations. And while in 2021 we will continue to make steady progress on the goals set out in our business plan, we will keep honoring the trust our customers have placed in us by providing them with top-quality service under the maxim: “The customer, my priority”.

Manuel S. Escobedo Conover