Good morning. Welcome to the Conference Call of SulAmérica to Announce the Results of the First Quarter of 2021. Today with us, we have Mr. Ricardo Bottas, CEO of SulAmérica, and the company's vice presidents. This conference call is being transmitted live on the webcast with audio and the slides that can be accessed at the company's investor relations website at www.sulamerica.com.br/ri. All participants will be connected in listen-only mode during the company's presentation. We are going to start a questions and answers session when further instructions will be provided. Should any of you need assistance during this conference call, please request the help of an operator by pressing star zero. The conference call of SulAmérica is being recorded and the audio will be available right after it ends at the company's investor relations website. Now I would like to turn the conference over to Mr. Ricardo Bottas, SulAmérica CEO, who's going to start the presentation. Mr. Bottas, please, you may start. Thank you. Good morning, everyone. I hope you are all well and in safety. Today we are going to make this conference call with all executive officers of the company. I would like to start highlighting the changes in the organizational structure of the company. There are two new Executive Officers, Clóvis Poggetti, an executive with broad experience in finance in publicly traded companies, who's going to be our CFO and IRO, and Maurício Kingsey, who has experience in creation of startups and development of businesses in digital environment with a very strong background in Innovation Technology to work in strategic projects of the company. Have also changed the commercial structure of the company to provide more synergy with the elimination of one vice presidency and migration of commercial activities to the business units in order to make the sales teams closer to the business areas, in order to create more alignment, especially now. This movement is to strengthen even further our businesses led by Raquel and Marcelo. We have expanded the scope of the Vice Presidency led by Patrícia Coimbra, coordinating all our ESG and human capital, integrating also marketing and communication. To complete our Executive Suite, we have Marco Antunes coordinating all operations with claims, also coordinating innovation technology and customer experience. My colleagues of the executive suite, along with all other directors of the company and our teams, follow on engaged to expedite SulAmérica's growth and to improve the lives of people. In talking about integral health, our role goes beyond the care with our members. We have more than BRL 1.3 billion since the beginning of the pandemic last year that have been associated to the coverage of COVID-19, and we have expanded once again our contribution to society at such a difficult time with an initiative that is providing emotional support to healthcare professionals and to victims of COVID-19, in addition to investments for the installation of more ICU beds for SUS patients and oxygen plants in the Amazon, including other initiatives that we are going to develop over the next few months. Even in a scenario that with so much uncertainty and so many challenges, we are once again delivering a solid quarter with very solid operational performance and growth. Now I'm going to share with you a few of the highlights of the quarter, and then I'm going to turn the conference over to Raquel and Marcelo to give you more details. Going to slide two, you can see the operational revenues. As a reminder, the first quarter of 2020 considered only continued operations of SulAmérica without Auto and P&C, which were still booked at that time for the comparison purposes. Revenues have totaled in Q1 2021, BRL 5.2 billion, an increase of 5.4% as compared to the same period in the year before. The highlights being 6% growth in health and dental, keeping the trend of the last quarters. It's important to highlight that we do not have any effects of the adjustments that have been suspended, both voluntarily and as a response to ANS determinations that were booked in the period last year and are being billed in 2021. We are billing them, they're under control and with no effect in delinquency. We have had an increase of 5% in pension in the first quarter, continuing the positive trend that we'd seen in previous periods. These performances, both Pension and Health & Dental, have more than offset the revenues of life and personal accidents that suffered the impacts of the pandemic in the quarter, and also in the segment of asset management influenced by the market context and lower risk appetite in allocation of third parties as compared to the year before. Raquel and Marcelo are going to address with more detail the evolutions of their businesses, and they're going to give you more details, the evolution of revenue, sales, and the performance of their business units. Now, going to slide three. If we start with loss ratio, consolidated numbers here too was 80.6%, Or rather, a reduction of 1 percentage point as compared to Q1 2020, driven especially by the better performance in Health & Dental, in spite of the significant pressure of costs related to COVID-19 in a portfolio of Life Insurance, deaths have been mentioned, and we are going to comment. Because of the deaths that occurred in Brazil, unfortunately, the operational margin has accompanied the growth of revenues and the control of loss ratio with a 22% growth as compared to Q1 2020, reaching BRL 484 million. Admin expenses is 7.2% of revenues, also under control. The specific dynamics of the quarter will be mentioned on the slide about admin expenses further on. On slide four, still on the highlights, you can see the EBITDA that we started reporting last year, going beyond the growth margin, reflecting our operational performance, isolating the dynamics of the financial result and other lines such as property results. In the first quarter, EBITDA has presented an increase of 48% as compared to Q1 2020. The adjusted EBITDA, taking out some expenses associated to the sale of the operations of Auto and P&C, was BRL 146 million, an increase of 35%, reflecting the solid operational performance. In terms of our financial result, we had a better performance as compared to the first quarter of 2020, with a better yield in our own assets portfolio, but still under pressure by the Selic rate. We expect to have more positive results in the quarters that we consider our allocation in post-fixed assets, which stand to benefit from recent increase in the Selic rate, and also the changes in our portfolio, which should also benefit from the scenario of change in basic interest rates. The financial result of 2020. Now, in that period, we're still booking financial revenues from assets of our business of savings bonds, BRL 24 million in the financial result, and they are not now being booked because that operation was discontinued. The net income here had a reduction of 23% as compared to Q1 2020. Here, in spite of the growth of net income before tax, a drop of net income has an impact of over higher income tax and social contribution rate. We are not Booking Interest on Equity in this quarter, which something that we did in the first quarter of 2020. Because these short-term results associated to COVID-19 that have affected our decision of constituting tax credits this quarter. That's another important point here in the financial result. I talked about the operational results related to savings bonds. The result net of investment bonds in the Q1 2020 was BRL 14 million, which again, is an operation that discontinued. It was not addressed as discontinued, but for analysis, it should be excluded from the comparison because the company no longer has that business. In closing, we have the Return on Equity, ROAE, which was about 12%, taking out the gains that we had with the sale of Auto and P&C that was booked in Q3 2020, and its ROAE is here, it's 12 months. To exclude significant effects of capital surplus, especially non-operational capital of SulAmérica Group, we are demonstrating the return on regulatory capital of our health and dental businesses, which was 23% over the past 12 months. 1 percentage point greater than last year. It's a good proxy to eliminate the effects of any capital surplus that is more structural and not associated to our Health operation, a specific analysis of that operation that accounts for about 93% of our revenues. Next slide, I'm going to turn the conference over to Raquel Giglio, who's going to present the results of Health & Dental to you. Thank you, Bottas. Good morning, everyone. Hope everyone is doing fine. Slide five, with our well-known AxisMed, which shows monitoring and coordinator of the beneficiary's journey from all the entry points to the health system, all based on our coordinated care strategy, which has been part of our operations for many years. We fully believe that we, as health operators, health carriers, are in the best position to coordinate this process, aligning industry interests and ensure greater predictability and sustainability for the system, as we can have a complete holistic view of the beneficiary's journey. Our initiatives in this regard continue to evolve, even more so considering the worsening of the pandemic in the first months of 2021, which have made and required a quick and effective follow-up, whether for demands regarding COVID-19 or for all the essential treatments that continue to be provided. They were never interrupted. We have to highlight once again, one of the great advances of the past 12 months, which is the adoption of digital health tools supported by Docway, our health app. With a very high degree of satisfaction and resoluteness, avoiding unnecessary exposure to hospital units, to visits to the emergency. At the same time, we provided appropriate care. Whenever a face-to-face care is required and digital is not enough, we expanded the fast-track initiatives. Now we have 32 partnering hospitals to ensure quick hospital referral without the need to take queues or take a triage in the ER. Also providing a good, welcoming environment, which is essential. This has been key during the peak periods of the pandemic, especially in Q1 2021. Slide six, we give more details about the progression of digital care, which continued to expand and have reached a record of 141,000 visits in March 2021. Almost 1 million consultations since January last year, 300,000 just in the first three months of 2021, including teleconsultation, teletherapies, and also telephone medical advice and education. With the continuous increase in the use of digital tools and the advance of our coordinated care strategy, we have expanded the number of active beneficiaries, reaching 660,000 and continue to grow. All of that providing high levels of satisfaction with an NPS that is within the zone of excellence, with very high levels of resolution, increasing the engagement of beneficiaries and health professionals, which is absolutely a requirement for success of the strategy. Slide seven, we can see the results of claim management, health wellness, as well as coordinated care. As of March 2021, 606,000 active beneficiaries in coordinated care represented 27% of the total base. There has been an increase compared to March and December 2020. Our expectation is to continue the pace of expansion, touching more and more beneficiaries. More important, those people we've already touched represent more than 50% of our claims going through coordinated care. The 27% beneficiary interact with that 50% of the volume of claims generated, which means we've been following up them closely and providing a virtual verticalization. At the same time, our initiatives in claim management continue to be essential for control of loss ratio, bringing more gains and predictability that translate into lower prices and lower price adjustments. We ended the first quarter with 42% of claims going through one of these models, alternative payment models. Bundles, packages, globalized daily rates, material and management, among others. They continue to bring important savings to our operations, but primarily alignment of different proposals with our system. Now going into slide eight, I'm going to talk about some recent acquisitions in the south of the country, a highly strategic region for us that has been the focus of our regional growth and the mid-ticket strategy. Paraná Clínicas, for some months under our management, has started the year quite well, now endorsed by SulAmérica brand with record of new sales, more than 4,000 lives in gross sales. We have also extended services to SulAmérica beneficiaries in the region, who can now go to any of Paraná Clínicas medical centers. We have also opened another unit in São José dos Pinhais, I had already mentioned in the previous call. The unit is 4x larger than the one operating in the region, increasing the capacity of care from 5,000 to 32,000 appointments per month, in addition to extending also the option of specialties and services. To add the good performance of Paraná Clínicas, we announced an agreement to acquire the portfolio of the health plans of Santa Casa de Misericórdia de Ponta Grossa through Paraná Clínicas. It's in the same region. Once it's completed, it will add 25,000 beneficiaries to our operation in the region. It's another inorganic movement in mid-ticket at accessible level, affordable prices with good quality of care and synergies that we will definitely capture from Paraná Clínicas. In little more than six months, we have 6% market share in Paraná and will keep on growing. At the same time, we continue to paying attention to additional opportunities in strategic regions, focusing on growing also inorganically. Going on slide nine, I'll talk about the acceleration of the organic strategy in mid-ticket with our more affordable regional product line called Direto, which has shown a very strong growth since the end of 2020. We have more than doubled the number of beneficiaries of Direto in December, ending the quarter with almost 26,000 lives. Most of them are new beneficiaries, new sales, and not requests for downgrades. The requests for downgrades amount to less than 3% of these lives. It shows a new addressable market, the strength of our brand, and the value proposition of Direto. Part of this great performance comes from the maturation of products launched earlier, a process that had been delayed by the pandemic. At the same time, the fact that we are visiting new markets such as Joinville, where in February we had over 5,000 lives. Now we are present with Direto in seven regions of the country, and there is more to come. Next week, there's going to be the launch of Direto Brasília, which is a product in partnership with Dasa, and soon after, another Direto in a different strategic region. Adding up organic and inorganic growth, there are about 150,000 lives in products in the mid-ticket segment with original strategy, a number that already shows its representativeness and our ability to penetrate in a new promising segment. Let's take a look at slide 10. I will briefly talk about the quarter's performance. Operating revenues were 6% higher than what we observed in Q1 2020, maintaining the pace of growth of previous periods. As Bottas talked about, without any positive effect of a controlled price adjustment, which had already been accounted for. We reached 4.3 million beneficiaries in Health & Dental, with growth of more than 395,000 beneficiaries in group plans in March 2020, both organic and inorganically. As to new sales, we must highlight the strong growth since the end of last year with the support of Direto, of course, but with excellent performance in other products, in all the group portfolios. There were 134,000 net additions, 57,000 beneficiaries in Health, and 77,000 in Dental just in the first three months of 2021. We strongly believe in the continuity of sales performance observed over the last few months, always with discipline in underwriting focused on long-term profitability. We have also been building more and more levers for this growth with the expansion of our portfolio, acceleration of mid to ticket strategy, and more recently, as Bottas pointed out in the beginning, the restructuring of the commercial area. Now it works even closer to the business. It works from within the business, which gives a more agility to accelerate growth in partnership with our brokers. Slide 11 shows us just to wrap up the loss ratio. In the chart on the top, we can see the loss ratio of the first quarter 2021 of 80.6%, 1.8 percentage point improvement over the first quarter 2020. Despite the pressure of cost of COVID-19, which added BRL 384 million in the quarter, and the frequency, which is not fully normalized yet, but somewhat close in most of the period, we had a reduction of other elective and non-urgency frequency use as of the second half of March because of the worsening of the pandemic and also because of the social distancing and the restrictive measures of the operations. They were all above what we observed in the beginning of the pandemic in March 2020. It is important to focus on long-term of the indicator based on all our initiatives of health and coordinated care, as well as our trust in the new sales force and the expansion of beneficiary. Despite the seasonality changes that have been impacted by the dynamic of the pandemic in the recent year, we have maintained a consistent journey for this indicator, as we can see in the 12-month series, the bottom of the slide. This is key. There is nothing that has changed in our strategy and positive journey, and we have been showing that over the years. Quite to the contrary, we are very excited about the future possibilities and recent changes of telemedicine, connective medicine, greater integration among all the partners in private health, innovation, data sharing, technology, et cetera. I also highlight the unification of the commercial area into the business area, and also the return of health and dental operations concerning our regulatory capital of 23% in the last 12 months as another piece of evidence of our correct strategic positioning of SulAmérica, our competitive advantage and capacity for growth. We continue with the purpose of delivering extremely high-quality products to our customers through our processes and practices, always looking for inclusion and access. In relation to the pandemic, we continue to monitor the progression of cases, as well as the progress of vaccinating, immunization of the population. It is absolutely essential for effective control of the pandemic that we emphasize on immunization. Above all, we've been showing our resilience and our capacity to grow profitably, even in challenging periods. I'm going to close now Health & Dental, and I'm going to hand it over to Marcelo Mello, our VP of Life, Pension, and Asset Management, to make comments about the results of the segment. Marcelo? Thank you, Raquel. Good morning, everyone. Now, continuing our presentation on slide 12, please. You will be seeing the operational revenues of life and personal accidents that demonstrated a reduction of 12% in the quarter, especially because of travel insurance dynamic directly influenced by the worsening of the pandemic earlier in the beginning of the year. Loss ratio is still impacted by the pandemic even more severely because the continuity of coverage of claims related to COVID-19, as we have done since the beginning of the pandemic with a considerable increase of deaths. In the first months of the year, we had an effect of about BRL 30 million in claims with about 700 cases covered. Taking out or just considering this effect, the loss ratio will go down from 81% to 56%, an impact that can still be reviewed considering that there is potential underreporting of cases related to COVID-19. Moving to slide number 13, talking about pension. Here, the revenues have followed the positive trajectory, as Bottas mentioned. An increase of 5% in revenues and 22% in reserves that have reached almost BRL 10 billion. Here we should highlight a growth well above the industry, not just in terms of contributions and also the growth in our reserves. We should also highlight that in this quarter, we have launched several pension products, expanding even further our portfolio. We have been noticing a growing interest in the product, with a growth not just in contributions, but also in net portability. Now on to slide number 14, in talking about Asset management. We closed the quarter with a volume under management amounting to about BRL 45 million. A reduction here explained because of redemptions, especially by corporate investors. Cash resources and operational revenues were 18% smaller as compared to Q1 2021, especially because of both said was the migration of investors of more sophisticated products to more conservative products that have lower rates or lower fees. We should also highlight, in terms of asset management, the launch of several products, and a special highlight to many credit products and also some stock funds, especially because of investments that we made with our investment teams and which were reinforced. No specific highlight this quarter regarding our investment in Órama, but we should highlight that our referral program for insurance brokers in de casas that we launched at the end of last year, has already 3,000 brokers listed, which has been very well received by brokers with potential of generating a flow for Órama that is interesting for them. Back to Bottas. Thank you, Mello. Continue. I'm going to briefly go through the last two slides. Slide 15 on admin expenses. Here on this chart, you can see the evolution of administrative expenses, current and adjusted by extraordinary effects associated to the sale of Auto and P&C operations, both in Q1 2020 and in 2021. In 2021, the effects regard the contract that we still have with Allianz for service provision, and that we had mentioned before, that amounted to BRL 16 million, basically in this comparison, that are eliminated for the analysis of recurring expenses. If we take out this effect, admin expenses as compared to revenue is 7.2%. It's important to highlight, too, here, a nominal increase in admin expenses as compared to continued operations and these comparisons. Even though we've been emphasizing this concept of continued and discontinued operation, it might not be perfect, especially in terms of the line of personnel. In the line of personnel, there were salary adjustments. When they come into effect, there's something that carries over from one quarter to the other, and increase in average headcount comparing between periods. This is one of the imperfections, although this is within expected, was the change in the commercial structure at the time of the spinoff as compared to last year. We had the spinoff, and they transferred the operation with significant part of the commercial structure. This is something that we had already decided, and we were reconfiguring the structure, which represented the hiring of a significant number of people, especially in regional branches or offices. This is according to expected, but this is not considering the equivalent structure in a comparison basis, and it looks like an increase, but it's actually a recomposition. On the other hand, at the end of the quarter, we have had a reduction of approximately 120 people in our structure and 200 positions are still vacant, considering the structuring after the sale of automobile and P&C, seeking better productivity rates in the company. This is related to these specific adjustments. Lastly, we have also had the impact of termination of contracts with executive officers and investments and attraction and retention of other executive officers that had an impact because the health market is very much busy with lots of transactions going on. These last measures in personnel are both to adapt the size of our structure and also to increase our productivity in all our bases for the growth, attracting and retaining key people. At the same time, we should highlight, and we talked about it last year, we have not stopped our pace of investment in projects like digital information, coordinated care. We have new regions in the first quarter. We are going to launch another two, SulAmérica Direto, in the next few weeks. This is very important. We are investing a lot in products, as Mello mentioned, new products, new funds that we are launching. Also as part of our investment strategy, also seeking to attract new strategies through new management teams. These are lines we are investing a lot on because we believe they are very promising to contribute to our growth and development. Slide 16, we have the portfolio allocation. Here it's an important highlight, which is a recent movement. It was a trend last year already, but it's become more intense this year, reducing our post-fixed exposure and significant allocation, using movements of assets prefixed this quarter, which reduced our allocation from 94% to 71% of our assets in post-fixed products. This allocation is still significant for the company, the 71%. We think it's going to benefit from this higher Selic trend. We also have a significant level of liquidity to make use of new movements in the market with additional allocations in order to improve it and further the performance of this portfolio. Now, we end the introduction, and we may move to the Q&A session. Ladies and gentlemen, we are now going to start the Q&A session. To ask a question, please press star one. To remove it from the list, please press star two. The first question comes from Vinicius Ribeiro from UBS. Good morning, everyone. Thank you very much for the question. Two points to explore. First, can you please talk about the claims, so BRL 343 million of impact that you mentioned. Does it have some kind of savings that those that postponed the procedures in the end of March, and how can we think about that volume in terms of structure as telemedicine and coordinated care means important cost savings, even if this cost avoidance will be translated into prices and new products. The second question about ROAE. You've mentioned a number of extraordinary events, things that happened in the past 12 months, but I'd like to take the topic to ask, what is the level that you see as structured? After one year of Direto, do we have a track record to say that it's possible to maintain the same return on investment with low prices? How can we think about the new organizational design that you have recently announced? Is there any change, or are you going to maintain in line with what you've done so far? Thank you. Hi, Vinicius. This is Raquel speaking. Thank you very much for your question. You've asked how we can bring together BRL 384 million, I mean, in the first quarter with the other elective procedures. We've seen primarily in March, a reduction in the number of elective procedures, also a reduction over level, which was very close to the pre-pandemic level, especially in elective procedures. Some urgent procedures were still somewhat lower than we used to have pre-COVID. We have to bear in mind that physicians are almost all immunized. Procedures were naturally being restarted as of the second half last year and the first quarter of this year. We've obtained a reduction that may bring some kind of compensation in the BRL 384 million from COVID, a very much smaller compensation or offset than what we observed last year. In addition to that, since the beginning of the pandemic, when we started adopting digital tools, telemedicine and everything, we have been focusing on activating beneficiaries, especially the ones that need to perform a physical examination or monitoring, especially chronic cases, so that they do not fail to monitor their health conditions that inevitably generate claims. This is something important to bear in mind. I'm going to ask Bottas to address the second part of your question. Vinicius, concerning the return, let me talk about two points. We calculated, and we shown the return ROAE, emphasizing that it has an important benefit, and it has an item of correcting the market asymmetry, which is the model of migration of solvency margin to a risk-based model approved in the end of first quarter last year. For us, there's been, let's say, a freezing of the solvency margin, which brings a positive effect combined with our profitability. It brings an effect where we maintain profitability at levels that we believe are sustainable. I would like also to consider another point, and I'm going to talk about pricing governance. Brazil has experienced an important reduction in capital cost. As you price new products, they end up capturing the lower capital cost in place today compared to what we used to have when the cost of capital was much higher. Of course, it brings a lower nominal return without harming the spread over capital. We do not launch a product that is more affordable, that has a lower price, that has high quality because our network has the same quality, I'm talking about Direto, but with different characteristics. As such, it can be offered at more affordable levels or prices. When we work in underwriting, we want to have a spread level which is equivalent in terms of return compared to our traditional products. It's the same level of spread over the cost of capital, but the products are launched at a capital cost, which is lower today than what it used to be in the past. Which is good because it includes more access, inclusion, and possibility of growth. Less of nominal return, but rather the spread and the return over capital as the opportunity. As to the second question about our organizational chart, we have a strategy in our SulAmérica, and we have a strategic advantage, which is to combine growth with profitability and sustainability of profitable levels. This logic has been maintained. Our organizational flow, and I think Raquel and Mello, who are two leaders today, not only provide corporate commercial area, but also retail. We expect the growth to be accelerated, maintaining our strategy of growing with profitability. We are not going into any adventure, wild attempts, but really working faster and more efficient. Is it going to improve our return on investment? That's what we bat for, but we have to wait for it. Yes, our organizational flowchart wants to speed up growth, but always with profitability. Great. Thank you very much for your answers. Thank you. The next question comes from Samuel Alves of BTG Pactual. Good morning, Bottas, Raquel, Mello. Good morning, everyone. I have one question within the loss ratio. We've observed a performance which was somewhat different among all different healthcare providers. Some showed an increase in loss ratio, others showed a very significant increase in loss ratio, and SulAmérica with a reduction. I'd like to hear from you, what are the theories behind it? How could we explain that? Maybe because of technical non-provisions, the company talked about that in the past, maybe you have some more provisions than the others. Have you adopted a more conservative guideline, as Raquel pointed out? Thirdly, maybe COVID has impacted less the profile of clients that you had at SulAmérica. I'd like to hear your thoughts about it. Thank you. Hi, Samuel. This is Raquel speaking. Well, that's a good thing to us, right? I think to some extent it is a mirror of everything that we've been doing throughout the years, emphasizing the point of virtual verticalization, coordinated care, supporting our beneficiaries in their journey, and all the other claim management actions that you are very well familiar with it. New models engaging the service providers in the care. We have to have a win-win situation involving healthcare providers, brokers, customers, and the company. For over five or six years, we've been working and structuring it, and as a consequence, it generates 42% of our claims with some alternative model of compensation and 660,000 beneficiaries under coordinated care. During the pandemic, we never interrupted any action of coordinated care. As I've emphasized in a number of situations, in some of them, we activated claims that wouldn't necessarily take place at that time. Preventive tasks, especially for oncology cases, oncology follow-up, and we've been doing that with the support of our partners to have early detection, because this is something that has a positive impact on the cost of that a treatment like that has, but primarily to life of the person, to life expectancy and quality of life. It has not changed at all. Another point which I think we should emphasize is our policy of underwriting. We are very conservative. We always privilege a very serious, well-planned, long-term underwriting. Thinking about one to five-year contract, our average remaining of in-house clients is 13 years. It's a long-term relationship with corporate clients. It does make a difference, and it's coherent. Finally, concerning the question about provisions, we haven't changed our methodology at all. We have the same methodology. Of course, we've been adjusting the variables that are part of that according to the reality as we see it. In the last period, we have seen some longer length of stay, maintaining that length of stay more in the ICU than in patient rooms, but with younger people. Younger people who had to be more time in the hospital, and that's expected because elderly patients are now being vaccinated, so there are fewer severe cases of elderly patients. We haven't made any change whatsoever, always being, not being conservative, but serious really in what we calculate when setting our provisions. Something quite interesting for you to know, mortality rate of our patients and our beneficiaries, which were really admitted to the hospital is 6.93%, below 7%. That's the mortality rate of our COVID-19 cases. Thank you very much, Raquel. Our next question comes from Guilherme Grespan from JP Morgan. Good morning, Bottas and Mello and Raquel. I have just two updates about your vision regarding two topics, which I find important for the business model in your industry. Number one regards the verticalization model. You have this test in Paraná Clínicas, and it's been going on for a while. Yes, we can hear you. There are two topics, and I would just like to get an update from you. The first one regards the real verticalization model, and you've been investing in Paraná Clínicas for a while. And it's your vision today in terms of experience regarding the new service models. Your appetite after the experience, I know it's just a few months, but everything that you've been doing at Paraná Clínicas, SulAmérica's appetite in terms of pursuing a true vertical model. Is it bigger or smaller than it was in the past? Also, touching on that topic regards customization. We've been witnessing a significant movement from providers, hospitals, competitors in your industry. What is your appetite in an environment of insurance companies, and how likely are you in terms of consolidation, and what is SulAmérica's appetite in this environment? This is Raquel. Thank you very much for your question. I'm going to start with your first question, and I'm going to share the second one with Bottas. First, Paraná Clínicas model. Paraná Clínicas is a semi-vertical carrier. It has some service units with their own service, with primary care and secondary care. Under no hypothesis, Paraná Clínicas clinical centers replace tertiary care in hospitals. Whether it is in total SulAmérica model or coordinated care and the more recent one of Paraná Clínicas, providers are essential partners for us to succeed in the model. In the case of Paraná Clínicas, our partner provider that enables our strategy is not just one, but it's Hospital Santa Cruz, which was part of the transaction when we did it together with Rede D'Or and the primary and secondary care, most of them, and the office visits, almost 78% of appointments are done in the clinical centers with our own doctors for this population of members of Paraná Clínicas. If necessary, if they need any surgery or any more complex care, our partner will do that. It's a win-win equation. I am absolutely sure of that. We should remember that there is not just one model that is right. The vertical model is good for the market, the non-vertical is also good for the market. There is space for everyone. With this investment that we have made in the south region of the country, we have opened a new road for growth. We are paving a new road for growth. Same thing with our Direto product. What we've been using with Rede D'Or and other providers. This is reflected in an alignment. For good and for worse, we want to have sustainable- A product. In order to meet the needs of our member base. Bottas, you're going to continue. I think that you have already addressed a part of the second question. Yes, we have this discussion. Actually, the strengthening of healthcare providers concentrated in hospitals but also laboratories in the market, this strengthens the non-vertical model. This demonstrates, as Raquel accurately mentioned, that there is a possibility of these two things coexisting with different addressable markets. It's important to mention that for sure, there's no doubt about verticalization. Our relationship with healthcare operators, this partnership, they are our partners. They mentioned Rede D'Or, Dasa, and we have partnership with other hospitals that have come to the capital market, such as Mater Dei and others. This strengthens the non-vertical model. The issue here, and right from the beginning, our virtual verticalization strategy was an enabler for us to go into a different mid-ticket segment. We believed in that, and we are confirming that. Just as our model that we have with Paraná Clínicas. It's not a strategy of verticalizing SulAmérica. Strategy of growing a new segment with more inclusion, more access, generating more opportunity that we need to do different from the traditional non-vertical model in a segment that has more high quality and the traditional segment in the market where we operate. We are confirming the strategy of enabling a mid-ticket product through vertical verticalization, number one. Because it's full virtual verticalization to enable the product of Direto, but it's partially physical, always in partnership, all to enable new acquisitions that will be similar to Paraná Clínicas and to structure other Direto products. Also the speed. We have seven, we have two on the pipeline for the next few weeks. It depends on the speed with which we can make the partnerships with our healthcare providers. This is increasingly true in our business model, the confirmation that yes, it is possible to have different regional products aligned with the interests of healthcare providers. The consolidation is positive. The growth of healthcare partners and hospitals and providers, it is positive to strengthen our strategy, which is aligned with their strategies. If you allow me a quick follow-up as part of the discussion. You have made a disclosure last year of new compensation models within claims. Do you have any vision to what level you can get in the short term? Is there any room to increase penetration in the short term? It is a goal that agrees with sustainability, and it's related to our products. Is it a dream? Yes, very much so. It's day-to-day detailed work. Undoubtedly, we've been demonstrating consistent growth along the past few years in terms of the management contract and in terms of new products. In terms of free choice and a sine qua non condition for the launch of new products. As you've seen the launch of the Direto product, they have a different compensation model that is way above the average. Okay. Thank you very much. Our next question comes from Mr. Mauricio Cepeda from Credit Suisse. Good morning, Bottas, Raquel, and Mello. Number one, congratulations on your result, your level of transparency. It's really excellent. I have two questions. The issue of optimization in terms of COVID, it has reflected a much lower loss ratio than usual. What have you seen at the end of Q1? Do you think that you're going to go back to those levels? This could be reflected in any other point in the year? My second question regards the pressures in terms of price increases for health plans. I know that you don't have many individual plans and as part of your strategy. There is an attempt of making equal individual and collective plans. What are you planning from now on into the future? Hi, Cepeda. This is Raquel. How are you? Thank you for your question. Okay. As to the utilization in Q2 last year, as you noted very accurately, it was completely atypical, and it was really a one-off. We'd never seen that. Really unprecedented. The frequency of elective procedures, and also emergency procedures went way down, it really slumped. When is that coming back? Is it already back? There's a lot held up. We are sure that along the year, a significant part of what should have happened back then and didn't happen has already been done. We are also sure that there's another significant portion that did not happen and will not happen, ever. This is the half full side of the cup, that opening horizons for the healthcare industry, that there are other ways of taking care of oneself and having interactions with doctors rather than running to an emergency room. What we saw last year, and when we see it in isolation, is still below, and maybe the level has changed forever, is people going to EDs. EDs, according to the Brazilian culture, and we are all witnesses of that, in a very relaxed way. Now we see emergency rooms being used for what they should be used, for what is necessary. Has the teleappointment really replaced the part of the demand that would rush to the emergency room? I personally believe so. What happened in Q2 last year was really a one-off. No one knew what we were dealing with. Physicians included, very fearful, not vaccinated. Today, doctors have already taken their vaccine. Part of it was held up. There's still a part of that to recover, but some of what was not done will not happen because they were not emergencies. In fact, people decided to have a softer, so to speak, care. I'm not really sure I understand your question about intervention of this. It's something that it's not really cyclical because it never goes away. The truth is that we see regulators respecting the rules that have been agreed with the market. Last year, we had a one-off effect with a discontinuation of adjustments, but the continuing of collection by health carriers and even before what the ANS determined, many insurance companies voluntarily suspended the price adjustments. I'm not seeing anything that could change this market dynamics. Thank you very much. The next question comes from Ricardo Boiati of Banco Safra. Hi, good morning. How are you doing? Thank you very much for the opportunity to ask a question. Raquel, I would like to insist somewhat in the loss ratio, because I think it's a very important point. We expected a worse loss ratio in the first quarter and even a marked deterioration quarter-over-quarter. It doesn't seem to happen. That was a result of the second wave. When we saw your figures, we were wondering, well, what is it? Is it low utilization? Has the company managed elective procedures with different elements? Hearing you, I had the impression that there had been an improvement from a structural perception, a 72.7%, excluding the impact of COVID-19, it's still somewhat below what would be considered standard. You said elective, especially emergency procedures are still below what is your history. You've said that emergency departments have really observed a change, and it might be something structural, basic. I'd like to understand that structural loss ratio of the company from now on. I know you don't set guidance, but can you please help us understand that? In our forecast and most of us, we were dealing with a loss ratio somewhat aligned with the history, somewhat below 80% for the medium long term. If there is a structural improvement, I understand that we should be working with something like 75%, considering there had been a decrease in use of emergency and also with the importance of coordinated care, almost one third of your portfolio, telemedicine use, et cetera. Please help us. Help us understand the loss ratio and how we can see it from now on. Hi, Ricardo. Let me tell you about the past, not the future, and you can just try to bring together the data. I know that some other healthcare providers, for example, they prohibited performance of surgeries during the pandemic because there were no beds available and really there was shortage of oxygen, et cetera. SulAmérica, however, never interrupted the performance of elective procedures. Answering your questions, we have never changed anything. We have interacted and talked to physicians, beneficiary hospitals, and corporate clients, understanding and making clear how serious the situation was. The attending physicians ultimately are the right people to consider to what extent the procedure should be performed or not. Attending physician and the patients, whether it's something that can be held for a while and maybe try alternative treatment and wait, or whether it's something that really had to be performed. That was the only support we offered. Physicians are absolutely free to decide what they want. We didn't change anything in previous validation, authorization. We didn't change anything in our practice. Of course, based on what Cepeda has just said, something that we expected to happen last year. It's not over yet. There are many unanswered questions. Is there some kind of diagnosis that was not made last year and now it's going to be maybe back and we'll start diagnosing again? We don't know. Nobody knows. That will all depend on the immunization as well. Looking for the first quarter, we didn't change anything. We never forbidden the performance of procedures. The number you see pictures the reality and the dynamic of how we work at SulAmérica and what you are very much used to doing it. This is Bottas speaking. Ricardo, there is an important structural issue. We cannot give you any guidance, and still there are a lot of uncertainties about how long the crisis will take and what will be the consequences after the pandemic. We are sharing some achieved results, and Raquel showed that. Last year in the first half, we had a decrease of frequency, and we told you the frequencies are within that perception of social distancing and all of that, and we expected it to resume. Even at that time, we were not sure when or how much. Have we thought that it would be 100%? No, probably not. We had to understand what would come. Access and inclusion are two important things, because this is a characteristic of our brand. This is the purpose of our integral health. Quality and access. This is a very important concept that we are reinforcing. When you listen to Raquel talking about our context, this is crystal clear. In terms of provisions and how careful we are, it all depends on the level of uncertainty and volatility because of the duration of the pandemic, because we don't know whether there's going to be a third wave or not, because of length of stay. There's just so much unknown things, and we are working to manage them. What we know is that we are prepared to deal with the future no matter what, because considering how technology had been included in our process and how much we levered them, we really expect important, positive structural changes. This is something good. This is something good that's going to generate more access, more portability. We are glad. 75% loss ratio. Well, wouldn't it be wonderful if we could really use that to provide competitive advantage over our competitors, and especially improving the perception of our clients. This is the message. There are some issues concerning breakthroughs and technology, and telemedicine was one of them because of the number of digital consultations we had. The investment in technology that we've been making over the years, the cultural transformation in the company, the purpose of integral health, all depend on being put together and delivering structural improvements. Great. Thank you very much. If I can make a very quick follow-up. Do you think that structural gains or gains of efficiency of reduction of structural claims could be translated into price adjustments maybe to improve your organic growth? Based on what you said, I can assume you were probably going to say yes, because part of what you gain will be reinvested to accelerate growth. Can you please tell us about some ballpark figure? What is the reduction that you've noticed so far in number of ED visits? Not necessarily a serious trauma or accident, but you see these visits to an ED because the person was feeling overall sick and did not know what to do, and maybe it's always easier to go to the ED. Now, people are probably using telemedicine for those visits, something that will become permanent. Let me hand it back to Raquel. This situation is a reality, and it has been so for some years. In our presentation, you can see how we've been observing the price adjustment of SMG and how we can maintain product profitability, but having better and better price strategies. This is exactly our strategy: to maintain margin, but always to share as much of an efficiency in costs and results of investments and coordinated care, and the use of technology as much as possible. Something that Raquel introduced to us in the Axis Med. More access, more portability, better access. Really, I think that's a reality. Raquel, would you like to build upon it? Well, Bottas has answered to some extent. Our interest is always to expand our bases of beneficiary. It involves not only our policy of price adjustment negotiations with our clients, really using our benefits to maintain our base of clients and always respect our underwriting criteria, of course, and also in pricing new contracts. This is not something that we are going to do. It's a reality, an existing reality that we have had in place for some years. As we notice improvement in our process and improved results, we share that with customers as much as possible, thinking about expanding the number of beneficiaries. The numbers we showed you for the first quarter really picture that. Concerning the use of ED, the emergency, please bear in mind that we still have the pandemic on. We don't know how that would be from now on after the pandemic. In the emergency department, especially in recent months, the average of reduction has been of 33%, reduction of use of ED visits. I think this number really shows that Brazilians are changing the culture. They used to go to an ED, and now they just think twice. This is usually what we observe, teleconsultation is a possibility of replacing that unnecessary visit to the ED. We've been talking about COVID, but there is meningitis, H1N1, and so many communicable diseases which are equally serious. If you go to the ED, you are more prone, really, to be infected by them. There has been a recent reduction of 23%. Great. Thank you. Thank you all very much. Our next question comes from the webcast by Mr. Eduardo Nishio from Genial Investimentos. Thank you for the presentation. Question to Ricardo Bottas. Congratulations on your new position. I wish you success. How do you see SulAmérica's strategy under your management? Any changes? The competition has been growing a lot through M&A. Do you think we are going to have more inorganic growth in your term? Thank you, Nishio. I think that the company's strategy is very well consolidated. Actually, what we have here in execution of the strategy, as a reminder, the strategy is always open and can be revisited. We have revisited when we decided to sell the Auto and P&C lines of businesses. We reviewed our strategy when we decided to go to mid-ticket segment only two years ago, and today adding inorganic and organic with Direto and Paraná Clínicas that have a penetration strategy in that segment with almost 150,000 lives with the recent acquisition of Santa Casa of Ponta Grossa. In less than two years, and based on a recent decision of going into a new segment of price tickets, we have 150,000 new lives. If you take the advancement, we're talking about one year. We are very confident, both myself and all my fellow executive officers, we see a set of opportunities based on the use of technology, based on a basis of almost 40,000 active brokers working with the company, more than 20,000 healthcare providers, and all the opportunities that we developed in our technology complex and our app with the greatest usability in our health portfolio that we have in Brazil. A volume of opportunities in the future that is really amazing, we are not going to fail to use any opportunity that will drive and leverage the company's growth. The company has designed a setting to try to find the ways to adjust forms for us to grow, combining growth and profitability, new strategies, new initiatives, tactics, something more structured. Whenever they come up, they will be communicated or disclosed in due time. We are very much guided towards mid-ticket, our proposal of integral healthy alignment of interest with this opportunity of generating more financial education. Mello mentioned our products and investments and how much we're investing in more new and more sophisticated products. We're a new team, very solid investment strategies based on ESG and also promoting ESG in the companies that we invest in through our investment management. With the pension, still very much in the beginning, but the pension has demonstrated solid growth that is also going to relate to the economic growth and to the economic recovery that we hope will be as soon as possible. This is something that we're already doing and still are doing. We want to grow and to grow in a sensible way, that are new roads to grow. With the acquisition and investment as it matures as part of our model in Paraná Clínicas, but generating growth based on a model. Whenever we make the acquisition of a model based on Paraná Clínicas that has the concentration in terms of primary and secondary care and has a very sound partnership with the tertiary care, there is a new avenue for growth. Other Paraná Clínicas that are similar, our strategies and there are opportunities that we are assessing in order to develop, especially our growth strategy in a segment that we call mid-ticket. Also the strengthening, as part of the questions that we had of our partners, healthcare providers that also have a quite significant inorganic pipeline, provide additional opportunities for us. Some hospitals and some networks also have associated health plans and carriers. Inorganic opportunities has always been SulAmérica's mind, and we want to find a way to accelerate this growth as part of our strategy. We have now ended our Q&A session. The questions asked through the webcast that have not been answered during the conference call will be answered afterwards through the email. I give the floor back to Mr. Bottas for his closing remarks. I would like to thank once again your presence here today and to thank everyone that has asked questions, and to give you a little bit more information in the quarter, actually. All our almost 4,000 employees, amazing. The strength of more than 36,000 brokers in the company, more than 20,000 providers, physicians and healthcare providers, tireless, t oday is Nurses Day. I would like to congratulate all nurses that have been tirelessly working through the pandemic. Our more than 70,000 shareholders that are part of our journey for growth. Thank you all very much, and we wish you all a very good day. The conference call of SulAmérica has now ended. We thank you very much for your participation and wish you a very good day.