QUAL3 Qualicorp

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

Starting in 2009, with specific regulation by the National Supplementary Health Agency (ANS) for the benefits administrator segment, Qualicorp Administradora de Benefícios obtained registration as an operator in the benefits administrator modality, taking on 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 plans by membership, 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 explicitly covered brokerage, agency, administration, and consulting in insurance, health plans, and benefits in general, in addition to equity interests in other companies in the sector.

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

The Company’s products and services range from the contracting and commercialization of health and dental plans to financial and operational back-office activities, benefits management consulting, and TPA (Third-Party Administrator) services. Support activities offered include billing of monthly premiums and transfer of premiums to the operators, assumption of initial default risk in certain contracts, enrollment management, invoice checking, customer service via call center and physical branches, as well as concierge services aimed at users of certain plans. Qualicorp also monitors technical indicators such as loss ratio and prevention and health promotion programs offered by operators, and supports the negotiation of adjustments, seeking to maintain the economic and financial balance of the managed portfolios. Additionally, the group intermediates the sale of personal insurance, including life, credit life, and personal accident insurance, contracted with partner insurers.

Qualicorp’s customer base is made up of different audiences within the supplementary health care chain. As of December 31, 2024, the group served approximately 1.5 million beneficiaries across all segments, distributed across Brazil’s 26 states and the Federal District. In the Membership segment, the portfolio totaled about 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 significant share of the customer base. The “Other Segments” include benefits consulting and brokerage for large companies, 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 existence 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, with emphasis on São Paulo, Rio de Janeiro, Pernambuco, Minas Gerais, the Federal District, and Bahia. Qualicorp states that it has more than 50 thousand registered third-party brokers, who work on prospecting beneficiaries linked to partner class entities or to companies and government agencies. The commercial flow in the Membership segment involves entering into group contracts with operators, the adhesion of class entities to these contracts through agreements, commercialization of the plans to the eligible population, and subsequent portfolio administration, including billing and management of the relationship with the beneficiary. In 2024, the company maintained group contracts with dozens of health care and dental operators, including some of the country’s main private groups.

Qualicorp’s activities are fully embedded in the regulated environment of Brazilian supplementary health care. As a benefits administrator and health insurance brokerage company, the Company depends on operating authorizations granted by ANS, a federal agency linked to the Ministry of Health responsible for regulating, setting rules, and overseeing the sector. The legislation governing health plans, notably Law No. 9,656/1998 and Law No. 9,961/2000, defines the parameters for the formation, organization, and supervision of operators and establishes ANS’s role in setting minimum coverage, product registration, guidelines for actuarial calculations, monitoring operators’ financial status, and possible portfolio transfers. Qualicorp is also subject to specific rules for benefits administrators, such as those requiring the linkage of guarantee assets when it assumes risks related to default in 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 and portfolio management routines are supported by systems and cloud technology infrastructure contracted from third parties, with data governance and monitoring. The Company reports operational improvement initiatives, 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 expanded the scope of services offered to self-managed health funds, government agencies, and operators under administrative outsourcing arrangements, without assumption of actuarial risk. As a publicly held corporation listed on B3, Qualicorp follows corporate governance practices required by the Brazilian capital markets, with periodic disclosure of financial and operational information, a management structure composed of a Board of Directors and executive board, as well as internal controls focused on regulatory compliance and the management of risks inherent to the supplementary health care sector.

Qualicorp’s position within the broader context of the Brazilian health system is directly linked to the dynamics between the Unified Health System (SUS) and the private health plan sector. In a scenario where around a quarter of the population has coverage through private plans, according to ANS data for 2024, the company operates in the intermediation and administration of group plans that seek to serve a portion of the population that does not receive a health benefit from its employer, using the structure of class entities as the basis for forming risk pools. The collective plans by membership model allows, within the current regulatory rules, the formation of contracts whose adjustments are not subject to the cap applied to individual plans, which has led many operators to focus their offerings on this type of product. In this environment, Qualicorp occupies a prominent position as a benefits administrator and plan distributor, connecting operators, class entities, companies, and end beneficiaries, and generating revenues essentially derived from intermediation and management of supplementary health care portfolios.