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Edited Transcript of SULA11.SA earnings conference call or presentation 21-Feb-20 1:00pm GMT

Q4 2019 Sul America SA Earnings Call

Mar 4, 2020 (Thomson StreetEvents) -- Edited Transcript of Sul America SA earnings conference call or presentation Friday, February 21, 2020 at 1:00:00pm GMT

TEXT version of Transcript

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Corporate Participants

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* Cristiano Donisete Barbieri

Sul América S.A. - Director of Information Technology & Customer Relations

* Gabriel Portella Fagundes Filho

Sul América S.A. - CEO & Member of Board of Executive Officers

* Raquel Giglio

Sul América S.A. - VP of Health and Odonto

* Ricardo Bottas Dourado dos Santos Machado

Sul América S.A. - Executive VP of Control & IR Officer

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Conference Call Participants

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* Eduardo Nishio

Brasil Plural Corretora de Cambio, Titulose Valores Mobiliários S.A., Research Division - Financial Sector Analyst

* Felipe Gaspar Salomao

Citigroup Inc, Research Division - Analyst

* Samuel Campos Alves

Banco BTG Pactual S.A., Research Division - Research Analyst

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Presentation

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Operator [1]

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Good morning. Welcome to the conference call of SulAmérica to announce the results of the fourth quarter of 2019. Today with us, we have Mr. Gabriel Portella, CEO of SulAmérica; and the company's Vice President.

This conference call is being transmitted live through a webcast with audio and slides that may be accessed at the company's Investor Relations website at the address, www.SulAmérica.com.br/ir. (Operator Instructions).

SulAmérica's conference call is being recorded, and the audio will be available right after its end at the company's Investor Relations website.

Now we would like to turn the conference over to Mr. Gabriel Portella, SulAmérica's CEO, who's going to start the presentation. Mr. Portella, please, you may start.

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Gabriel Portella Fagundes Filho, Sul América S.A. - CEO & Member of Board of Executive Officers [2]

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Good morning, everyone. As in every conference call that we have, I am here gathered with SulAmérica's Executive Committee to announce the performance of SulAmérica in the fourth quarter of 2019 and the whole year. This has been a landmark in SulAmérica's history with record operational results keeping the positive trend of growth always with profitability. We have the net income of BRL 1.2 billion, 30% above the year before and a return on equity of 17.6%, a result that is quite consistent.

We should highlight the strategic movements that mark a new phase in the company's history. We have announced the agreement with Allianz to divest in a segment of automobile and massified. And now we have completed the divestment of savings bonds, and we also invested into [arm] to hold the 25% interest in this company that is one of the main digital platforms for investment in Brazil. So we are on a path to become a people-focused company in the health, dental, pension and life.

We have exceeded the mark of 4 million members for health and dental with organic growth and also inorganic growth with the acquisition of Prodent. We have 2.3 million members in health, 1.7 million members in dental, record numbers, a result of the consistent growth of SulAmérica over the past few years, above the market in a sustainable way and also with profitability.

Once again, we have a positive evolution of loss ratio with a gain as compared to 2018 and the best result ever for this indicator since 2010, keeping our positive trajectory. It is the result of long-term results and work that was assertive, focused on claims management, health, well-being and more recently on coordinated care. Our coordinated care strategy has already more than 400,000 members in the care center with closer follow up of their journey.

In non-automobile, in spite of the still challenging environment in the market in terms of growth, we have kept a good pace of sales in partnership with insurance brokers preserving our short suite.

In asset management, SulAmérica has invested and has set another record with BRL 46 billion in assets under management, 11% above the year before, also with excellent evolution in profitability.

Making the most of the favorable environment for investments in line of our work focusing on in environment, social and governance themes, we have launched SulAmérica Total Impact FIA, an investment fund that has social, environmental criteria to select assets, and 100% of its administration fee is reverted to a social impact NGO in the Amazon. We also are growing in pension with BRL 8 billion in reserves. Our growth and gains in operational efficiency have raised our CAGR, reaching 96.6%, the best result ever for SulAmérica.

And I have also to mention the many innovations that we have been launching. Investments in technology are essential for sustainability and differentiation of our operations.

There are many initiatives. I'm going to mention a few. So the expansion of doctor at home in 50 cities, the launch of doctor and physician or rather the doctor on the screen, the psychologist on the screen, the co-pay simulators, the broker portal that is more agile and digital in addition to the coordinated care platform. So many innovations have led us to be recognized as the most innovative insurance company in Brazil with a record of 4 awards that we won for innovation from CNSeg. It was a very positive year. We started 2020 prepared to continue our solid trajectory, growing sustainability and confident to face the challenges and to use the opportunities of a new cycle of growth in Brazil.

Now I take the opportunity to reaffirm SulAmérica's support to all our partners with whom our development expansion would not be possible.

Now I turn the conference over to Ricardo Bottas, our Vice President of Control and Investor Relations, who is going to commence the main financial and operational results of the quarter and year, then we are going to move to our questions-and-answer session.

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Ricardo Bottas Dourado dos Santos Machado, Sul América S.A. - Executive VP of Control & IR Officer [3]

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Thank you, Gabriel. Good morning, everyone. Now the slides that are available for the webcast, Slide #2, and then we'll be talking about the consolidated revenue. As Gabriel has made comments about that, the consolidated numbers, growing 9% with a little bit more detail between the main segments, health and dental have had a growth of 11%.

Here, there is a combined growth -- in a growth of number of members and I'll give you more detail when we talk more about health and also the effect of annual adjustments that we apply to the policies that are very important for the economic balance of these contracts that have a quite positive dynamic over the past few years and having been presented a gradual reduction impact in past few years.

In automobile, there has been a drop of 2.8% in the year. In the quarter, this drop was a little bit more sharper because of more challenging environment at the end of last year, but it's important to stress that we preserved our assured fleet with a slight growth in the year, keeping us approximately 1.7 million vehicles.

In life and personal accidents, we grew 5% as in previous quarters because of travel and credit life insurance that have grown 27% and 96%, respectively, in 2019 as compared to the year before.

Another highlight is our growth in pension, where revenue has grown 25% in the period, here, too, driven by the growth of reserves that have evolved by 12.4%. And with a highlight in pension, the growth of products of VGBL and our revenues have grown 44.2%. And VGBL reserves that has grown 26.4%. Also talking about revenue, the evolution of our asset management has grown 73% in 2019, an excellent result for SulAmérica investments with more funds being based in revenues and the performance of our funds in 2019, most notably in the last quarter of 2019.

As Gabriel has mentioned, and I would like to stress is, the volume of assets under management have reached BRL 46 billion at the end of the period, an increase that was very significant and a highlight in increase of resources or funds from third parties that have grown 13%.

Slide, we can see health and dental, which represent as a result of the increase of our revenue, 78% share and cars had experienced a decrease compared to previous year, representing 15% of our total revenue in '19 as a result of the small increase of revenue that we observed in 2019.

Now giving you further details about the transaction of our divestment of the car business. We have been approved by the antitrust authority, CADE, and also the initial authorization by SUSEP. And right now, we are working on the spin-off of the corporates, which are going to be subject -- or rather object of the operations. We are working on adjusting all the activities of auto and also massified. And we'll be ready to tackle the business up to the end of the operation in the first half of the year.

We have just completed the end of January with an effect in February, the transition for the divestment of our saving bonds operation, which will no longer be part of the consolidated balance sheet of the company. It will be there in the first quarter because of January, but then it won't be there as of the second quarter 2020.

Now on Slide 4, we can see the main highlights and indicators and I will skip revenue, as I've already talked about it. The third line of the table, we can see loss ratio. At a consolidated rate, it was stable in the fourth quarter and year-to-date, but I will talk further about health and dental, which was somewhat of the stability, where we have observed some improvement.

Gross margin improved 1.2 percentage point in the quarter and 0.2 percentage point in the year, which amounts to BRL 277 million in absolute terms or 11% growth over -- '19 over '18. The growth in margin, aligned with control with costs and expenses, has led to an operating gross margin of BRL 2.8 billion or 11% and net profit of BRL 1.2 billion or 31% over the previous year.

In the quarter, the profit totaled BRL 453 million, growth of 15%. It's important to highlight that in third quarter, as in previous quarter, we had the effect of interest on equity, which brings down effective rate. It was 21% effectively. But in the previous year, we also had an interest on equity report and the rate was 16.7% in 2020, below what we have observed in the period.

In the line of income tax before net profit, there was an effect which was -- had also been accounted for in the previous year of a reversion of liability of BRL 600 million. It was associated to failure in some tax lawsuits. And if it happens, there is some operations that have transactions that have to be done based on the tax liability. And if there is a loss of this is -- then we have to account for it. It was BRL 60 million. There was another lawsuit that had an unfavorable decision and amounted to BRL 60 million.

So these are all effects that when we compare head to head, there is no impact. But these are not things that can be anticipated. We don't know whether they are going to be repeated in terms of volume or date of occurrence.

Now going into the administrative expenses. There is another positive highlight in the period, which is the index over operations was 8.3% of total revenue, 0.4 percentage point. It shows our operational leverage of controlling expenses. And in administrative expenses, we've also included the investments made in technology, innovation and projects about which we have been describing to the market continuously.

It's also important to mention in SG&A and we have to understand the figure as a whole, positive and negative effects, which may not be recurring. In the quarter, we included expenses associated with this transaction of divestment of car and P&C in the spin-off of our operations. It amounted to BRL 24 million in the quarter and BRL 29 million in the year. Just for your information, we are going to keep on reporting these effects because they have to be combined with the effect of the final transaction, whose main impact will be accounted for in 2020.

The expenses we've had found increased somewhat more than SG&A as a whole as this is also a combination of the fact that we have salary workers' agreement increase and also an increase in our head count, almost 200 people more in our staff. And it was observed in all our strategic projects, involving innovation, digital transformation, coordinated care and all the wave of innovation we have experienced in the company, bringing new teams and people really fully engaged in the project.

In terms of SG&A line, once again, there is a point that I would like to highlight. It's within tax. It's a reversal of a nonoperational PIS tax. It is a result of what I had mentioned before and amounted to BRL 37 million growth before tax, which have been accounted within SG&A.

It's important to show that even though we are highlighting issues which should not be extrapolated, positive and negative effects seem to be balanced out. But theoretically, these ones would not be part of these operations. They are not likely to be replicated in future periods.

It's also important to talk about margin, and it had an important effect. We've highlighted that it is a reversal of a provision in life, BRL 64 million in technical reserve. The net effect was BRL 39 million, and it was a requirement to meet SUSEP requirement, which needed a combination of coverage of pension and life products that had different characteristics. As such, we had to adjust the provisions to reach the appropriate level.

It's also important to highlight when we talk about net profit and to complete this description so that investors and analysts can understand our results despite the sale of saving bonds have just been completed by January 20, 2019, throughout the year. We didn't document equity matters of Caixa Capitalização in 2019. Just for comparison reasons, they were BRL 32 million. They were not documented in 2019 or accounted for in 2019 because the database is December 2018.

All these events that are being described for the [fast] analysis and comparability of earnings as a whole may not be recurring. But in general terms, they offset each other. There is no net effect on our final net profit.

Let me emphasize the financial results. It was practically stable, but there was some effect from the reduction of the interest rate, focused more on the last quarter of '19, showing that the result in the fourth quarter was below 7.2%. The main cause here is the effect of the decrease in the interest rates SELIC. But as a result of the competitive market and the auto business, we decided to increase the number of payment installments for the operations of cars, which can be paid up to 10 installments with no interest rate, which also has an impact in the accounting results of 2019 over 2018.

And despite all the effects, we also had a positive impact, growth of our portfolio of investments, the portfolio of the insurance company, except for pension, it reached BRL 10.2 billion or 5% increase over 2018, and our performance reached 117% of CDI as opposed to 111% in 2018. CAGR was 96.6% with 0.4 percentage point reduction, the best indicator in this historical series for the past 5 years, and an expanded financial index, which also includes the net results showing a small but significant improvement considering the reduction of the interest rate. Therefore, it is a very good indicator of performance and our capacity to really compensate the results and the financial results of that. So our return on average net income was 17.6% in 2019, within our strategy to try to balance growth and profitability.

Now moving to Slide #5 to talk about health and dental. And our affinity portfolios have had positive growth in revenues, have grown in dental 31% in the year, 45% in the quarter. So here, there's an inorganic effect of the acquisition of Prodent that has been fully booked in the last quarter. SMB has grown 17% in revenues in 2019 and 13% in Q4. And corporate and affinity have grown 10% in 2019 and 9% in Q4. Consistent growth, both in the quarter and the year, indicating the consistency of our portfolio in spite of -- we are still betting but waiting on the recovery of the economy and also the recovery of unemployment rates.

Talking about members in health and dental, we have exceeded the mark of 4 million members in 2019, another highlight with the acquisition of Prodent that has driven our book of members to grow by 44%.

In affinity portfolios, we have had a growth of 5% in number of members and net lives have grown by 46,000 in SMB, 3% growth with a net addition of 17,000 lives -- additional lives. So collective plans has grown by 84,000 live net, also considering AOS (sic) [ASO] plans. So with revenue increase and loss ratio, I'm going to mention the next slide. So the gross margin in health and dental closed the year, up by 15%, reaching BRL 2 billion.

And now moving to Slide 6. The health and dental loss ratio. So on the top of the slide, you can see the evolution of quarterly loss ratio where you can note that we have the cat loss ratio under control in Q4 '19 with a consistent positive evolution, but we also highlight the loss ratio in quarters may suffer the impact of seasonal effects or one-off effects. And we always emphasize that it's much more important to look at longer periods of time to understand the behavior or the trend of this item. So we are going to focus on the lower slide, where you can see annual history of loss ratio. You can see a consistent trend, and I would like to emphasize for you to look more carefully on our pursuit to balance, to find a balance between growth and sustainability. And this is one of the highlights of all initiatives that we have in terms of coordinated care, our partnership with medical providers and our accredited network.

Now moving to Slide #7, automobile. Automobile closed the year with a revenue of BRL 3.3 billion, and the revenue has been lower by almost 3% as compared to 2018. The reduction is explained especially by the reduction of revenue in Q4, which was a drop of almost 10%. And this reduction has a first component that is already the reflects of the drop in average premiums of the policies on the market as a whole and also for SulAmérica because of better robbery and theft indicators especially, but also because of scenario -- in a competitive scenario that is stronger especially in Q4.

Loss ratio has remained at a good level, especially considering the lower revenue and lower average premiums, closing the period at 61%, which is worse than the year before but still within our tolerance rate, considering the competitive environment and average premium.

And insurance fleet, once again, grew almost 1%, totaling 1.7 million vehicles at the end of December in a scenario that is also challenging for the automobile insurance market that also depends very much on the recovery of the economy and sales of new cars.

Now I close my part and I move to the questions-and-answer section.

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Questions and Answers

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Operator [1]

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(Operator Instructions) Our first question comes from Samuel Alves from BTG Pactual.

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Samuel Campos Alves, Banco BTG Pactual S.A., Research Division - Research Analyst [2]

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I have 2 quick questions. The first one, could you give us an update about SulAmérica Direto. You had mentioned that you were considering new geographies, new partners for São Paulo platform. Can you tell us a little bit more about the rollout for segments in São Paulo? How is this evolving? Number one. And second thing is just an update of the competition scenario in health. We have seen an important competitors selling or giving up many lives during 2019. Do you feel any type of reaction and changing in the competition scenario because of this competitor on the industry as a whole in early 2020?

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Raquel Giglio, Sul América S.A. - VP of Health and Odonto [3]

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Right. Samuel, this is Raquel Giglio. So as to direct product, day before yesterday, so the sales were made available for massified channels. So the product in São Paulo, the direct sample especially with Dr. Consulta with the German Hospital and Children's Hospital Sabara and Maternity Santa Maria is also part of the project. And then we have a partnership with Hospital Santa Cruz and DASA Labs and in [Rio Guidador]. So there will be other direct products in the future. But this step of heavy massified products both for Affinity and SMB is an important step. So this has started just a day before yesterday.

As to the competition environment, this is seasonal. So sometimes competitiveness slightly fiercer and our competitors are more aggressive. And at other times, it's not so fierce. So we have seen some aggressiveness but undoubtedly, we still try to price our products in the right way with long-term partnerships. We want to have longer contracts where we note that the entry price is the right one. So dumping has never and will never be part of our strategy.

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Operator [4]

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Our next question comes from Felipe Salomao from Citibank.

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Felipe Gaspar Salomao, Citigroup Inc, Research Division - Analyst [5]

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Number one, it's about regulation capital. According to your opinion, considering the sale of your automobile business, once it's complete, what is the surplus? What is the adequate surplus of regulatory capital for the company in a sustainable way as of 2021? If we look today, the excess regulatory capital is BRL 1.7 billion, BRL 1.8 billion. So what is the level? What will be the regulatory capital once you complete the sale of your automobile business?

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Ricardo Bottas Dourado dos Santos Machado, Sul América S.A. - Executive VP of Control & IR Officer [6]

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Felipe, this is Bottas speaking. The essence of your question, and as you know, we don't determine that kind of guidance or indication about the future. We don't give any guidance concern, our willingness or our planning of capital use. But I'll try to give you some color in terms of the capital to the end of the period. You mentioned BRL 1.7 billion and it's important to understand and what -- and the metrics, right, that can be used for your estimation purposes.

In health, this is simple to estimate according to ANS rules in place. And this discussion is upheld, but we believe it's going to be resumed shortly, which is something that has been discussed with the market, which is to go into convergency or solvency market going on a risk-based capital. So getting it closer between -- or just having the right reserve capital for HMOs and insurance company. But until then, our model of solvency required by a net for the health operation, our main operation of the insurance company, I'm not considering dental or both payments. But that's a simple calculation. The average over the last 3 years of loss ratio, 1/3 of that, of the annual average of the loss ratio. So we closed the year with a solvency area of 107% of the requirement versus an index that we have maintained, and this is information that can be obtained from data submitted to ANS.

Concerning cars, we are going [for] a spin-off. And this is something where you can have your estimate considering capital access. Part of that is also going to be in the operations of the spin-off and the requirements that we have in the end of 2019 for the operation of car amount to BRL 700 million. So that's very close to the number we disclosed when we completed the transaction, which is going to be allocated to Allianz. When we closed 2019, considering the size of the fleet and even the facts that I've pointed out in terms of premium, it closed at BRL 700 million as the required capital.

And then there are a number of other minor effects of companies in -- you see that won't be repeated in 2019, but I cannot talk about forecast. But for example, resources were already allocated for investments in Órama, our investment company. And there, we can see BRL 100 million capital excess, which were used in the first quarter to make the investment we had already planned. So it's just seasonality.

And another example without going to be any longer, for regulatory reasons, we should have a capital access to cover claims to be settled. So I have to have assets and collaterals, which end up being translated in excess capital. So I think that with that, I can help you get your estimates.

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Operator [7]

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We carry on now, Eduardo Nishio of Banco Plural.

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Eduardo Nishio, Brasil Plural Corretora de Cambio, Titulose Valores Mobiliários S.A., Research Division - Financial Sector Analyst [8]

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I have 2 questions. First, concerning coordinated care. You've published further data about this segment, very strong growth, getting to 10% of your basis. Can you please elaborate on margins of this process and also the rollout? Are you just adding new customers? Are you using your own life? And can you give us some idea about profitability and the geographic distribution of the product in states? Just tell us about the loss ratio of this product. With coordinated care, can you have a better control of your loss ratio? Your NPS is high, really showing greater growth in the long run. So this is the first question.

Second one, concerned product, Direto [direct], your entry-level product. I'd like to know more about the margins. Is it a product based on volume that you get through margins throughout time? Or is it a product that in which you already have a good margin right from the beginning compared to your high-value or higher premium products?

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Raquel Giglio, Sul América S.A. - VP of Health and Odonto [9]

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This is Raquel. Thank you for your question. I'll start with the second question first. Concerning product Direto, it is not a product -- an entry-level, low-income product. It's still focused on some high-income groups. It's income classes A and B, B plus. This is based on restructuring and coordinated care, and it has started from our new assumptions, our new belief. In the second half of last year, it was sold for companies that have over 30 lives. And right now, we are -- start selling it massified.

In terms of coordinated care, it's no longer a project for a while. It's something that permeates our whole strategy. It's focused on the beneficiary with the right flow. These are not only for people who have one specific profile of utilization. We have a population certification to know who would be generating claims and not. So some tests, we haven't been mapped or visited. This is also part of the strategy of coordinated care.

Concerning that accessibility and also coordinated in a whole care, we have a number of innovations, medical education over the phone, using video. People can be in Brazil, abroad, traveling. So that's all readily available. We have the doctor at home in over 50 cities. We have primary care units operating through different partners. We have coordinated care physicians over 1,700 with different specialties and other modalities such as psychologists, PT and dietitians. We have been working with different providers. We have the psychology on the screens, some new tool. And this is all part of our coordinated care strategy. Everything based on innovation and technology, of course, always with excellence in customer care.

We also have the delivery of chemotherapy and immunobiological data -- medications, I mean. So we can monitor deliveries. We can monitor the new prescriptions. And the NPS of this action is 100 points. So the satisfaction of our beneficiary here is really complete. I'm also going to ask Cristiano Barbieri, who is our VP of Innovation and Strategy, to talk about what we've been doing with the app.

And before I close, coordinated care is the core of our strategy. As a consequence, the results of coordinated care is already part of our results. It's not set apart or separated.

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Cristiano Donisete Barbieri, Sul América S.A. - Director of Information Technology & Customer Relations [10]

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This is Cristiano speaking. The app that we've been investing on a yearly basis has become one of the main channels of communication and the main entry port of care -- to coordinated care. We have over 1 million users with an app and over 600,000 clients who use our app monthly, with 61% growth over last year. So we had 61% increase in number of transactions through our app. All our innovations are taken to our customers, these and transactions or medical. They are always through the app.

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Eduardo Nishio, Brasil Plural Corretora de Cambio, Titulose Valores Mobiliários S.A., Research Division - Financial Sector Analyst [11]

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One last question. In coordinated care in product direct, let me tell you -- let me hear about margins. Coordinated care throughout time will lead you to better margins and better NPS. With the product direct, if you could compare the product direct against your portfolio, does it have similar margins to your traditional products?

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Gabriel Portella Fagundes Filho, Sul América S.A. - CEO & Member of Board of Executive Officers [12]

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First, to launch a product, we define the margins and we have target margins. So I think that the main challenge that we have, not just in SulAmérica, but the industry as a whole, when we ask these many questions in terms of care coordination, how to expand the market even further. So -- and if we have 23% of the population that catered or included, how can we go to 25%, 35%? So we want to expand the market and our business.

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Operator [13]

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So our next question comes from Mauricio from Crédit Suisse.

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Unidentified Analyst, [14]

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Number one, congratulations for keeping the loss ratio under control for many years. It's really impressive. I have 2 questions. The first one is because you have the merit of having lowered your loss ratio, do you have any intention of translating that enterprise in many more markets? That's question #1. And then question #2 is related to the question of operational leverage. And do you exclude the automobile business? Do you already estimate a loss of synergy in general and administrative expenses?

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Gabriel Portella Fagundes Filho, Sul América S.A. - CEO & Member of Board of Executive Officers [15]

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Mauricio, this is Gabriel. I'm going to start from your second question. So there is a lot of movement, as you have been seeing, for both companies. But the whole concept is to preserve the operational efficiency of SulAmérica and what still remains of the operation. So we do not expect any dis-synergy because we are gauging the company to have the right size as it needs to be in terms of revenue.

Of course, at first, we have some additional costs because of this separation, this spin-off, but they are one-off expenses. They have been taking place ever since we signed the agreement, but the concept of the operation is to preserve operational efficiency based on the discipline that we have been practicing, of course, to have the discipline. So we do not accept anything except what we mentioned or some investments that are necessary for us to make the operation happen and to make the most of the value of the transaction. Now Raquel is going to answer your question.

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Raquel Giglio, Sul América S.A. - VP of Health and Odonto [16]

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Mauricio, this is Raquel. So certainly, so the main strategy that we have with coordinated care and a direct line and other projects that we are going to launch is market penetration, and we have been consistently demonstrating an improvement in our loss ratio at levels that seem to be quite appropriate. So if we can transfer to consumers in terms of adjustment and pricing to have more and more lives, we are going to do that, all of that without losing the focus that we have always had on customer retention. So our customer retention is very high in SulAmérica. In distribution of Direto and all other shelf products, we also have a commercial area that increasingly more specialize and the brokers that support us.

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Unidentified Analyst, [17]

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Thank you, and congratulations once again. Really, it's really impressive.

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Gabriel Portella Fagundes Filho, Sul América S.A. - CEO & Member of Board of Executive Officers [18]

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Thank you.

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Operator [19]

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(Operator Instructions) If there are no further questions, I give the conference back to Mr. Portella for his closing remarks.

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Gabriel Portella Fagundes Filho, Sul América S.A. - CEO & Member of Board of Executive Officers [20]

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Thank you very much to everyone for attending our conference call, and I would like to thank, once again, the effort and dedication of the great team that I have with me that is responsible for all the initiatives and results that we have been obtaining, and all the more than 5,000 workers and our 39,000 insurance brokers that are part of our history that are partner -- part of our business and our business partners, too, and our service providers, the shareholders, to the supporters and other stakeholders of SulAmérica. Thank you very much to everyone. Have a nice day, and have a good Carnival.

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Operator [21]

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The conference call of SulAmérica has now ended. Thank you very much, and have a good day.

[Statements in English on this transcript were spoken by an interpreter present on the live call.]