QUAL3

Qualicorp Consultoria e Corretora de Seguros S.A. is a Brazilian company that operates in the management, administration, and distribution of health insurance plans, dental plans, and personal insurance, with common shares traded on B3 under the ticker QUAL3. The group began operations in 1997 through Qualicorp Consultoria e Corretora de Seguros de Vida e Saúde Ltda., originally focused on brokering group health plans and insurance under the collective by-membership modality, aimed at individuals linked to professional associations and class entities. Throughout the 2000s, the company underwent significant corporate restructurings, including the acquisition of Qualicorp Administradora de Benefícios S.A., which went on to concentrate the stipulation of group policies and corporate and by-membership collective contracts, and the entry of investor General Atlantic in 2008, which supported a strategy of expansion via acquisitions in related segments such as life insurance and benefits administration.

Starting in 2009, with specific regulation issued by the National Supplementary Health Agency (ANS) for the benefits administration segment, Qualicorp Administradora de Benefícios obtained registration as an operator in the benefits administrator category, assuming a central role in the group’s business structure. Since then, Qualicorp has consolidated a significant position in the administration, management, and sales of corporate group health plans and, above all, collective by-membership plans, without directly assuming the actuarial risk of the plans. In 2018, the corporate name was changed to Qualicorp Consultoria e Corretora de Seguros S.A., reflecting a broader corporate purpose that expressly covers brokerage, agency, administration, and consulting in insurance, health plans, and benefits in general, as well as equity interests in other companies in the sector.

Qualicorp’s business model is predominantly based on the By-Membership segment, which accounts for most of its consolidated net operating revenue. In 2024, the By-Membership segment was responsible for approximately 91.8% of net revenue, while the other business units (“Other Segments”) represented about 8.2%. In the main segment, the company negotiates contracts with health and dental plan operators, structuring collective by-membership products aimed at population groups linked to professional associations, professional councils, unions, and similar entities. Qualicorp acts as a benefits administrator and broker, with compensation derived from commissions, agency fees, administration fees, and revenue-sharing contracts, maintaining a direct relationship with beneficiaries and class entities and providing administrative, financial, operational, and support services to partner operators.

The company’s products and services range from contracting and marketing health and dental plans to financial and operational back-office activities, benefits management consulting, and TPA (Third-Party Administrator) services. Notable support activities include billing and transfer of premiums to operators, assumption of initial default risk in certain contracts, records management, invoice verification, call center and physical branch customer service, as well as concierge services for users of certain plans. Qualicorp also monitors technical indicators such as loss ratios and the prevention and health promotion programs offered by operators, and provides support in renegotiating price adjustments, seeking to maintain the economic and financial balance of the managed portfolios. Additionally, the group intermediates the sale of personal insurance products, including life, credit life, and personal accident insurance, contracted with partner insurers.

Qualicorp’s client base is made up of different audiences within the Brazilian supplementary health chain. As of December 31, 2024, the group served approximately 1.5 million beneficiaries across all segments, distributed throughout Brazil’s 26 states and the Federal District. In the By-Membership segment, the portfolio totaled around 872 thousand beneficiaries, linked to more than 400 associations and class entities, with a significant concentration in the Southeast region, especially in the states of São Paulo and Rio de Janeiro, which accounted for a substantial portion of the client base. The “Other Segments” include benefits consulting and brokerage for large corporations, as well as intermediation of health plans for small and medium-sized companies, a segment in which Qualicorp had about 96.5 thousand beneficiaries at the end of 2024. The company also reports that one of its corporate clients accounts for approximately 16% of net revenue, reflecting the presence of larger contracts in its portfolio.

Product distribution is carried out through a combination of in-house structure and an outsourced network of partner brokers. Sales activities are concentrated in regional offices located in several states, particularly São Paulo, Rio de Janeiro, Pernambuco, Minas Gerais, the Federal District, and Bahia. Qualicorp reports having more than 50 thousand registered third-party brokers, who work on prospecting beneficiaries linked to affiliated class entities or to companies and government bodies. The commercial flow in the By-Membership segment involves the execution of group contracts with operators, the adherence of class entities to these contracts through agreements, the marketing of plans to the eligible population, and subsequent portfolio administration, including billing and beneficiary relationship management. In 2024, the company maintained group contracts with dozens of health and dental plan operators, including some of the country’s leading private groups.

Qualicorp’s operations are fully embedded in Brazil’s regulated supplementary health environment. As a benefits administrator and health insurance brokerage firm, the company depends on operating authorizations granted by ANS, an autonomous federal agency linked to the Ministry of Health responsible for regulating, standardizing, and overseeing the sector. The legislation governing health plans, particularly Law No. 9,656/1998 and Law No. 9,961/2000, defines the parameters for the incorporation, organization, and supervision of operators and sets out ANS’s role in defining minimum coverage requirements, product registration, guidelines for actuarial calculations, monitoring operators’ financial conditions, and the potential transfer of portfolios. Qualicorp is also subject to specific rules for benefits administrators, such as those that mandate the pledge of guarantee assets when it assumes risks related to default on group plans, and must comply with regulatory guidelines in its relationships with operators, class entities, and beneficiaries.

From a corporate practices standpoint, Qualicorp structures its operations around essentially digital and service processes, with no physical production activity. Its back-office routines and portfolio management are supported by IT systems and cloud infrastructure contracted from third parties, with data governance and monitoring. The company reports ongoing initiatives in operational improvement, corporate consolidation, and expansion via acquisitions over time, such as the purchase of benefits administration companies (Aliança Administradora, Uniconsult, Plural, among others) and TPA platforms, which broadened the scope of services offered to self-managed health funds, government agencies, and operators under administrative outsourcing arrangements, without assuming actuarial risk. As a publicly held corporation listed on B3, Qualicorp follows the corporate governance practices required by the Brazilian capital markets, with periodic disclosure of financial and operating information, a governance structure comprising a Board of Directors and executive management, as well as internal controls focused on regulatory compliance and on managing risks inherent to the supplementary health sector.

Qualicorp’s position within the broader context of the Brazilian healthcare system is directly linked to the dynamics between the Unified Health System (SUS) and the private health plan sector. In a scenario where around one quarter of the population has private coverage, according to ANS data for 2024, the company acts in the intermediation and administration of group plans designed to serve a portion of the population that does not receive health benefits from employers, using class entities as the basis for forming risk groups. The collective by-membership model allows, within current regulatory rules, the creation of contracts with price adjustments not subject to the cap applied to individual plans, which has led many operators to concentrate their offerings in this type of product. In this environment, Qualicorp holds a prominent position as a benefits administrator and plan distributor, connecting operators, class entities, companies, and end beneficiaries, and generating revenue essentially derived from the intermediation and management of supplementary health portfolios.