We have 3 remuneration policies (bonuses), which are adapted to the operations of our different subsidiaries.

Servicios Administrativos Peña Verde

Performance Bonus

Our Human Resources Area oversees the calculation and payment processes, both subject to the approval of the Evaluation and Compensation Committee.

To qualify for the bonus, the associate must be on permanent contract and have at least 6 months of seniority.

The bonus calculation process is conducted in February of the year following the period evaluated and is settled no later than the second half of April of such year.

The top number of salary months to qualify for (Target) is established in accordance to the hierarchical level and will be aligned with industry practice based on market information provided by an external consultant specialized in competitive compensation studies.

Performance Bonus Amount

It is relevant to note that penalties are applied in the event that the Ethics Committee or the Legal Department has filed administrative proceedings against the associate being evaluated.

Performance Evaluation Components

Extra Bonus

Associates who, based on their Performance Result and Affinity Result, are located in quadrants 6 and 9 of the Talent Matrix (described below) will be eligible for an extra bonus. The number of associates eligible for this bonus shall not exceed 5% of the total workforce.

Talent Matrix

The following factors are taken into account to evaluate the X-axis:

  • Achievement of strategic and area management KPIs aligned with key results.
  • Performance evaluation by adherence to culture and/or competency pillars
  • Grade of Area Strategic Initiatives

The Affinity Result ("Y" axis) is determined based on the adherence to the job profile and cultural pillars.

Reaseguradora Patria

Bonus per Priemiums Written

The Corporate Deputy Director of Risks is responsible for preparing and sending to the Corporate Deputy Director of Compensation and Talent Attraction the primary evaluation report with the technical results of the Subsidiary.

The Corporate Deputy Director of Compensation and Talent Attraction is responsible for notifying the Payroll Area and the Underwriting Sub-Directorates of the corresponding amounts that each associate will receive as a bonus.

The Chief Executive Officer is responsible for reviewing the calculation of the bonus and its approval, the latter together with the Evaluation and Compensation Committee.

To qualify for this bonus, associates most hold any of these positions within the Underwriting Area: Development Supervisor, Assistant Manager, Manager, Assistant Director and Director; and have a minimum seniority of 12 months.

The maximum limit of the amount authorized for the bonus must be equal to the amount of Employee Participation in Profit-Sharing (PTU for its Spanish acronym) plus the authorized bonus amount (which must be equal to or less than the number of months authorized to be paid) multiplied by 1.5.

The amount of this incentive must be adjusted proportionally when the PTU exceeds the amount established in the number of months to be paid, but under no circumstances will it affect the PTU settlement.

The Underwriting Deputy Managers are responsible for notifying associates of the authorized amount and for providing feedback on strengths, areas for improvement and the action plan to be followed. The Payroll Area must settle the bonus in the second half of July.

The Corporate Deputy Director of Risk will prepare a comprehensive report of technical results with the year-end exchange rate of all currencies and with the premium by type of reinsurance, using information obtained from the SIREC (Spanish acronym for Integrated Reinsurance and Accounting System) database, in order to obtain the increase rates in premium by geographic region, comparing the past 5 years.

The target increases by industry in each region are as follows:

It will also calculate the grade of compliance by industry and region for the last year with the following weightings:

The following weightings should be considered for the calculation of the bonus:

General de Seguros

It is the responsibility of the Human Resources Area to manage the process of calculation and payment of the commercial incentive and of the Sales Department to report the results on commercial goals on which the incentive calculation is based.

In order to participate in this scheme, the associate must be active during the period of payment.

For Branch Managers, Regional Directors and Zone Managers, the calculation is based on the associate's last monthly salary for the year to be evaluated, and the incentive payment process is performed monthly. While for Office Managers and Commercial Executives the calculation is based on the number of monthly policies and is conducted on semi-annual basis.

The amount to be paid is authorized by the Human Resources Management and the Sales Management of the Insurance Division, and is settled in the second fortnight of the month following the period evaluated.

The monthly sales budget is established annually by the Sales Management and authorized by the General Management of the Insurance Division. The following metrics are applied to this budget for each of the following associate segments:

Office Managers and Sales Executives

The incentive is paid from 100 policies per month per associate (with no growth limit), regardless of the mix between Current Agents and Recruits, is subject to compliance with the assigned sales budget and the payment is made per policy according to the following matrix:

Personal Cars 50 100
SMEs 50 100
Personal Health 50 100

Branch Manager

The target amount is 50% of the monthly salary and is calculated monthly by meeting the sales budget of the assigned offices, as well as by developing the distribution network through the attraction and incorporation of productive intermediaries. The criteria for payment are as follows:

Regional Directors and Zone Managers

The target amount is 1.5 times the monthly salary.

In order for the Regional Director and the Zone Manager to be eligible for the commercial incentive, 75% of the managers in their zone must have earned their quarterly incentive on at least one occasion with 60% of the target amount.

To be eligible, the following items must exceed budget compliance:

  • Semi-annual sales allocated per industry in associate’s region - failure to comply per industry will result in a 15% penalty on each incentive; for example, failure to comply in 2 industries will result in a 30% penalty on the incentive even in case of an overall surplus.
  • Channel development in associate’s region - sales obtained through recruited agents, measured by net premiums collected.