AUTO INSURANCE INDUSTRY REPORT 4Q05 by yca71986

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									 AUTO INSURANCE
INDUSTRY REPORT
       4Q05




     March 2006
                                                                                 Industry Report 4Q05




Highlights
(variations are with respect to the 4Q04; numbers as of December 31, 2005)

The following comparisons are based on the numbers published in EstadisticAMIS by
the Mexican Association of Insurance Institutions (“Asociación Mexicana de
Instituciones de Seguros” AMIS).

Growth in Premiums - 2005 vs 2004
          The auto insurance market grew 1.4%
          Quálitas grew 13.0%
          Among the 5 leading companies, where Quálitas is positioned, the market grew
          by 2.8%
          Without taking Quálitas growth into account, the first 5 companies grew by 0.6%.


Market Share
          Quálitas market share rose from 11.2% during 2004 to 12.5% in 2005.
          Quálitas remains as the third player in the auto insurance market.


Combined Ratio - 2005 vs 2004
          The auto insurance market ratio increased from 95.1% to 99.2%.
          Quálitas’ ratio rose from 89.3% to 97.4%. (1)
          The top five companies’ ratio grew from 94.5% to 98.5%.
          Without taking Quálitas ratio into account, the top five companies ratio grew from
          98.4% to 98.7%.

(1)
      The statistics published by AMIS do not include the extraordinary items communicated by
Quálitas in February of 2006, which impacted its results by decreasing the Earned Premiums
item by P$74 million, which were credited to the Reserve of Unearned Premiums account. This
also impacted the combined ratio in the auto sector, which, post-extraordinary item, amounts to
98.9%.

Source: Quarterly sector data; EstadísticAMIS Report from the Mexican Association of Insurance
Institutions (“Asociación Mexicana de Instituciones de Seguros” AMIS) and Quálitas data.

Combined Ratio: (A+B) , A= ((Acquisition Cost + Administrative Expenses) / Retained Premiums) *100 ;
B= (Loss Ratio/ Retained Earned Premiums) *100

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                                                                                                Industry Report 4Q05




                                    Growth: Qualitas, The Top Five
                                  Companies and The Total Automobile
                                            Market (4Q05)

14.0%
         13.0%

12.0%


10.0%


8.0%


6.0%


4.0%


2.0%                                                                                             1.4%
                                                        0.6%

0.0%
                                                        Top 5                         Total Automobile Market
          Q                                      (not incluiding Q)




                                          Qualitas Market Share


        14.0%




        12.0%
                                               11.5%                                    12.5%
                                11.1%                                 11.9%   12.2%
                                        10.9%          11.2% 11.4%


         10.0%
                  9.0%



           8.0%

                  4Q03
                         1Q04
                                 2Q04
                                        3Q04
                                                4Q04
                                                        1Q05
                                                               2Q05
                                                                       3Q05
                                                                               4Q05




                                                                                                                   3
                                                                                                             Industry Report 4Q05



                                                     Ratios as of 4Q05
                                                     Automobile Sector

120.0%

                                                                  98.7%                                      99.2%
                         97.4%
100.0%



80.0%                     74.4%
                                                                    70.1%                                      71.2%


60.0%



40.0%

                                                                  20.6%                                      20.2%
20.0%
                         12.3%                                      8.0%                                       7.3%
                         10.6%
  0.0%
                           Q                          Top 5 (Not inlcuiding Q)                          Total Auto Market

                                       Combined    Net Acquisition Cost     Operative Costs   Loss & LAE




                                                     Quálitas
                                      Number of Insured Vehicles (Cumulative)

1,000,000                                                                 Growth 4T04 to 3T05:   28.9%
 900,000
                      Growth 4Q03 to 4Q04:   35.9%                                                                          861,061
                                                                                                            821,696
 800,000                                                                                      772,918
                                                                                716,381
 700,000                                                         667,860
                                                  641,885
                                     594,869
 600,000                 550,058
            491,538
 500,000


 400,000


 300,000


 200,000


 100,000


      -

             4Q03         1Q04        2Q04         3Q04            4Q04           1Q05           2Q05         3Q05           4Q05




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                                                                                     Industry Report 4Q05




  Except for the historic information herein provided, statements included in this document regarding
   the Company's business outlook and anticipated financial and operating results or regarding the
 Company's growth potential, constitute forward-looking statements and are based on management’s
   expectations regarding the economic and business conditions in Mexico and the countries where
                                            Quálitas operates.



CONTACTS Quálitas:
Wilfrido Castillo Sánchez Mejorada
CFO

Noah Couttolenc
Financial Manager

E: inversionistas@qualitas.com.mx
T: +52 (55) 5002-5870


CONTACTO EXTERNO:
Luisa Salgado Sota
IR Communications

E: luisa@irandpr.com
T: +52 (55) 5644-1247




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