Good morning. Welcome to the conference call of SulAmérica to announce the results of the second quarter of 2021. Today we have with us Mr. Ricardo Bottas, SulAmérica CEO, and the vice presidents of the company. This conference call is being transmitted live through webcast with an audio and slides that can be accessed through the company's investor relations website at the address www.sulamerica.com.br/ri. All participants will be connected in listen only mode during the conference call. We are going to start the questions and answer sessions when further instructions will be provided. Should any of you need any assistance during this conference call, please request the help of an operator by pressing star zero. 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. Ricardo Bottas, SulAmérica CEO, who's going to start the presentation. Mr. Bottas, please, the floor is yours. Good morning, everyone. I am here at the company with all members of the company's executive committee who will be with me to talk about the performance of this third quarter. Despite the still challenging period in terms of operating results, I will start talking with a message of optimism. After more than a year dealing with the pandemic with significant impacts on society and also in our health and life segments, we have significant indications that we are reaching the end of the crisis, reduction of cases, hospitalizations, and deaths due to COVID-19, especially after the progress of vaccination in Brazil. In this manner, we are going back to normal in our lives, and we also hope to go back to more normal levels of return and profitability for our operation, us resuming SulAmérica's long track record of sustained growth so well-known to the market. Here already focusing attention on the countries that have risks of new waves of COVID-19, especially because vaccination is not evolving satisfactorily, I would like to reinforce the importance of us following in Brazil with the evolution of vaccination as well as its booster doses until we're completely free of this crisis. This period was not easy for anyone, and it is worth highlighting that which was, is, and will always be the priority of SulAmérica, integral health for all our employees, customers in all aspects. In health and dental, we prioritize the guarantee of access of high quality care and a strong and close partnership with our network of healthcare providers. In life, we did not close our eyes to the critical situation still in the beginning of the pandemic, and we decided to cover the claims related to COVID-19. The total impacts were significant, totaling more than BRL 2 billion since March 2020, of which BRL 1.2 billion were in 2021. We are not measuring our efforts. That's our purpose, to improve people's lives in all aspects. We are confident that this crisis is nearing its end, and we believe that that will remain as a positive legacy that we have managed to build and accelerate the development of the company in this period. Despite the challenging times, we managed to grow. We have expanded our product portfolio and have increased our customer base, something that will surely benefit us in coming years. At the same time, the pandemic has accelerated the digitalization process around the world. We have also evolved. SulAmérica is more agile and digital, offering more technology, convenience, and innovation to beneficiaries, customers, and brokers, undoubtedly through the capacity of our teams to innovate. The recognition that we have received in innovation and our prominent position motivates us to continue evolving this fundamental agenda for the best delivery of integral health. As important as the advancement of this digital transformation is our journey in material terms for the sustainability of SulAmérica, aiming at a better future. We are promoting a cultural transformation in the company. Our inclusion and diversity program, launched in August, has had a high rate of engagement, and we are building a more plural, diverse, and collaborative environment. At the same time, we are aligning our recent fundraising strategy with a ninth issuance of debentures announced in October with an important and unprecedented commitment to promote emotional health aligned with our purpose of integral health. SulAmérica has also signed with another 17 managers in the country, BRL 873 billion assets under management, the declaration related to low carbon issuance presented at COP26, coordinated by the Climate Investors Initiative of which we are part. Now I would like to turn the conference over to Clovis to continue with the analysis and comments about the businesses in the period together with our leaders of the other business unit, Raquel and Marcelo. Now going to slide number two with operational results, which total BRL 5.2 billion on the quarter, BRL 15.6 billion in year-to-date numbers, a growth of 4% and 6% respectively as compared to the same periods in the year before. Good performance in health and dental and life, more than offsetting the lower pension and asset management contributions. In dental and health, an increase of the base of beneficiaries of collective plans has boosted the growth of 5% in revenues, more than offsetting the negative effects of the negative adjustment of individual plans that began to be felt this quarter, in addition to the reduction of the number of members in this modality, which we haven't sold for many years. ASO plans follow the pace of growth in recent periods, up by 9% in the third quarter as compared to the third quarter last year. It's worth mentioning here the continuity of recovery in life and personal accidents with an 11% increase in revenues, which my colleague Marcelo will comment later. Now moving to slide 3, a few points that I would like to highlight in the quarter. Starting with the gross margin, which was BRL 357 million in Q3 2021, 27% higher than the second quarter this year, portraying the beginning of the recovery that Bottas mentioned. We cannot help but point out that it was still a challenging period with impacts of COVID-19 still present, combined with a normalization of frequencies of other health claims, leading to a consolidated loss ratio of 84.6% in this quarter, worse than the regular third quarter, but already 1.3 percentage points better than the second quarter of this year. It is worth mentioning that the third quarter of last year had benefited from the measures of social distancing last year and presented a lower than normal loss ratio bearing the comparison between the two periods. This dynamic will be discussed in greater detail by Raquel Giglio further ahead. In the other business lines, I would like to report the adjusted index of admin expenses of 7.4% in the quarter, and 7.1% in the year. Both levels under control, reflecting the focus in operational efficiency that the company has. Specifically in this quarter, the index showed a slight increase compared to the third quarter last year, which I will comment further forward in the presentation. On slide number 4, you can see in the EBITDA the reflection of the points mentioned in previous slides, meaning still impacted by the costs related to the pandemic of COVID-19, which in this quarter totaled BRL 268 million in terms of claims, combined with a normalization of frequencies of elective procedures in health. Despite the impact on EBITDA, we see a significant improvement in financial results, one of the highlights of the quarter, with an increase of more than 660% compared to the third quarter last year and 220% compared to the second quarter this year. This good performance is mainly related to the increase in the Selic rate, a move that should continue in the future periods, in addition to the good performance of assets hedged by the inflation. I would like to end this slide talking about the net income, which totaled BRL 280 million in the quarter. Here reflecting mainly the decision of the Supreme Federal Court of the unconstitutionality of collection of income tax and social contribution on the correction of Selic in tax disputes, with a positive impact in tax and financial result lines amounting to BRL 260 million, booked at our best estimate, fully backed by our legal advisors and aligned with IBRACON's interpretation. Now, I would like to give the floor to Raquel Giglio to give you more details about our performance in health and dental. Thank you, Clovis. Good morning, everyone. To start slide 5, I'm going to talk about coordinated care and our digital initiatives. We at SulAmérica have always encouraged the use of technology as a way to expand access to healthcare, and it's an essential part of coordinated care strategy. We can see that this focused investment has paid off. The use of health app has reached record access every quarter, and our telemedicine doctor on screen, Médico na Tela, has become part of the beneficiary's journey. We've reached more than 1 million remote consultations in 2021, and we are close to reaching 2 million digital interactions since the beginning of 2020, maintaining high rates of resolution in the first phys-virtual consultation. Coordinated care strategy has continued to move on. The end of September, there were 786,000 coordinated beneficiaries, 31% of the total base, representing more than half of the claims. There are also over 4,000 doctors and healthcare professionals who help us provide quality healthcare in several specialties, which are absolutely fundamental pillars of this more agile, welcoming, sustainable follow-up for the system. At the same time, we continue to develop new options for the healthcare arch. The ECPS, an evolution of the fast track COVID, launched during the pandemic, allows quick referral of cases that need urgent care after remote interactions with us, now expanded beyond COVID with 150 partner hospitals in 70 cities. We are also expanding Lab IN, our digital lab project with home collection with partners that enable sharing of exam data and is already in 13 cities in the state of São Paulo, which will soon reach also new regions. All of that with high levels of satisfaction. NPS in the zone of excellence for the coordinated care as a whole, as well as for physicians, both virtual and on-site. Let me talk about the mid-ticket strategy in slide 6. It has gained market share in our sales, contributing to our growth. Starting from SulAmérica Direto, which has shown enormous potential since the end of last year, reaching 142,000 beneficiaries at the end of the third quarter and maintaining very accelerated expansion. Several regions have had positive surprises, and I give you great news today called Direto Salvador, complementing our offer in one of the most important metropolitan regions in the northeast with excellent providers, always. We are confident in the success of this product, and we have another launch planned for this year, besides a pipeline of regions for 2022. Our mid-ticket strategy also has an inorganic component to accelerate this growth. In October, we concluded the acquisition of Santa Casa de Ponta Grossa portfolio, just adding 25,000 beneficiaries to Paraná Clínicas, which already has more than 120,000 beneficiaries in the region and continues to grow. We have also have mapped an organic expansion of Paraná Clínicas in strategic clusters prospecting process to start the operation. We are working extensively with our M&A team, evaluating opportunities to acquire operators and portfolios that can further contribute. We are absolutely optimistic with this movement, and we believe that soon we'll be able to share more news. Let me now talk about operating performance as of slide 7. Revenues grew 5% in the quarter and 6% year to date, mainly following the growth in number of beneficiaries in our group plans. In terms of organic growth, as we are not considering the lives of Santa Casa de Ponta Grossa, we added 133,000 beneficiaries in health, 80,000 in corporate and affinity, and 50,000 in SME, in addition to 200,000 in dental over the third quarter 2020. Compared to June 2021, the performance was great, growing more than 70,000 lives in dental and 47,000 in health, accelerating the number of net adds over the previous quarter. This excellent performance makes us even more confident that our growth strategy is being effective. The combination of creating more affordable product options, accelerate the expansion of mid-ticket, the strength of our brand associated with delivery of quality health care and an increasing partnership with the players, has given us confidence that we'll continue on positive trajectory in upcoming years. Slide 8, I'm going to talk about the loss ratio. Claims rate in the second quarter still suffered impacts from the pandemic. Estimated cost of COVID were BRL 212 million in the quarter and over BRL 1 billion year to date. Combined with that, we have observed a frequency of elective procedures at practically normal levels, which has contributed to the claims ratio reaching 84% in the quarter, 8.9 percentage points higher in comparison with the third quarter 2020. As Clovis pointed out, it was a period which was benefited by the social distancing mandatory measures in 2020. We believe that despite the short-term pressure, the SulAmérica results stand out in relation to the market's performance, which is a reflection of all the claims management initiatives we've adopted, and especially the coordinated care which combines efficiency and quality in health management of our beneficiaries, always in partnership with our healthcare providers. Excluding claims referring to COVID-19, claims ratio or loss ratio would have been 79.7%, a level very close to our historical levels. Just for comparison purposes, looking to the third quarter 2019 with no pandemic effect, if we disregard COVID-19 in the third quarter 2021, we were at levels quite close to normal. Year to date, 12 months, loss ratio was 82.6% and 75.9% if we disregard the effects of the pandemic. Looking at the chart, we can see the effect of frequencies and atypical scenarios, both in 2020 and 2021, and we expect to slowly normalize these curves for upcoming quarters. Now speaking specifically about COVID, we have observed a relevant reduction in cost compared to the second quarter 2021, with a drop of more than 50% in claims and an important drop in the number of hospitalized cases and beneficiaries. It has shown a gain of 1.6 percentage points over the second quarter 2021, with improvement of more than 30% in gross margin, showing a gradual recovery of profitability. With that, I close health and dental, and I'd like now to hand it over to Marcelo Mello, VP of Life, Pension and Asset Management, to talk about the results. Thank you, Raquel. Good morning, everyone. I'm going to start with slide 9, where we can see revenues from Life. For the second consecutive quarter, it has shown recovery, showing growth of 11%. It's worth highlighting the resumption of travel product, travel insurance, which was highly impacted, but it has shown now growth in revenues of 148% over the same period last year and over 80% increase over the second quarter 2021. Following now that we have less restriction of traveling, both national, domestic and international. In September, we started offering additional coverage for COVID-19 in our travel products, just anticipating market demand. On the other hand, the segment's claim was still heavily impacted, staying over 100% due to the high impact from the second wave of COVID. We estimated the impact of BRL 56 million COVID in the quarter, but it's still possible to have some underreporting considering the declaration of cause of death still affecting the analysis. As mentioned, after a very difficult period for this portfolio, with a significant drop in the number of deaths that we have observed in the country, we can expect better results as of upcoming quarters, gradually returning to our normal profitability levels. Now, slide 10, I would like to talk about pension, which posted 28% drop in revenues compared to the third quarter of 2020, due to lower contributions from VGBL and PGBL products in the period. It's worth noting that we have continued to expand our portfolio of pension products by bringing new managers into our products. This year, we are going to launch 13 products in different strategies. At the same time, reserves reached BRL 9.3 billion, 7% increase over the same period last year, continuing to show our positive trend shown throughout 2021. Now, slide 11 shows that asset management ended September 2021 with BRL 42 billion in volume of managed assets, a 9% reduction, which can be explained mainly by the partial redemption of resources referring to automobile and massified operation P&L, which are third-party resources since our disinvestment or sales of the segment in July 2020. Operating revenues in the quarter were 18% lower compared to the third quarter 2020, following the slower AUM. Year-to-date performance, we have maintained a solid performance, 12% year-over-year growth, driven by higher performance fees in the nine-month period. It's also worth highlighting our performance in fixed income and private credit products. We have one of the largest credit funds product with ESG processes, and we are well-positioned in fixed income strategies. These strategies will have a very positive flow in upcoming quarters due to this macroeconomic scenario with higher interest rate of Selic. Let me now hand it back to Clovis for the conclusion of this presentation. Thank you, Melo. Slide 12. Let me talk about administrative expenses in detail. The administrative expense to revenue ratio was 7.8% in the quarter and 7% year-to-date. As usual, we are also showing the adjusted index, disregarding extraordinary effects of the period, which in the quarters refer to expenses of service rendered to Allianz Group related to temporary support for the automobile and massified operation, with a positive counterpart in revenues totaling BRL 90 million in Q3 2021 and BRL 23 million in Q3 2020. We also considered extraordinary facts, the positive reversal of BRL 65 million of fee provisions from ANS accounted for Q2 2021, and the expenses from the separation of our previous operations, which amounted to BRL 45 million in the nine months last year. If we disregard all these effects, administrative expense ratio was 7.4% in the quarter, an increase of 0.8 percentage point, mainly due to one-off expenses with advertising campaigns, with our new brand positioning, and also the commercial launches in the mid-ticket segment, totaling approximately BRL 22 million impact, which should not be repeated at this same level. Additionally, we have had the internationalization of some processes which used to be provided by third parties. It increased our headcount and impacted personnel in comparison with the third quarter last year. However, it has benefited the costs with third-party services, which should generate value in the long term. Year to date, the adjusted ratio was 7.1%, a very controlled level, demonstrating the company's focus on keeping costs and expense levels under control, seeking efficiency even with all the investments required for the company's growth. Now, moving on to slide 13, I will make some very brief comment about the portfolio allocation of our company's own portfolio, highlighting the participation of Selic CDI indexed assets, which total 64%. Looking further, we can say that the financial result, which has suffered a lot in recent years with sequential falls in the Selic interest rate, is now going to present a better performance also in the company's result following the increases in the basic interest rate that are being conducted by the Brazilian Central Bank. I close here the initial considerations, and we can now move on to the Q&A session. Thank you. Ladies and gentlemen, we are now going to start our questions and answer session. To ask a question, please press star one. To take your question from the list, please press star two. Our first question comes from Mr. Vinicius Ribeiro from UBS. Good morning, everyone. Thank you very much for taking my question. I have a question about health plans. What is the commercial strategy for 2022? At other times of difficulty, you could navigate very well the market with a good portfolio of products. What should we expect in terms of commercial strategy in future, both in terms of retention and new sales? The second question is about loss ratio. We see a gradual recovery of usual levels, but in talking about 2022, considering the statistical actuarial effect, should we expect that it will continue the same? Now with COVID becoming endemic rather than pandemic, do you still see an effect related to that? That's all. Thank you very much. Hi, Vinicius. This is Raquel. Thank you for your question. Now, about the commercial strategy for 2022. We have a very clear and consistent strategy that we have had for a few years. We are acknowledged for having an average time of our members that is very high. It's even longer than 13 years in some categories. Just as in other crisis, this is what we have been doing since the beginning of the COVID crisis, and we have no intention of changing it. Our intention is to keep our fishbowl with as many fishes as possible, and whenever there is something new and there is some organic growth, we will grow again with them. Of course, last year was completely atypical in terms of performance and bottom line, in terms of loss ratio and cash, which is the main point that we'll look at in terms of adjustments. More than 90% of corporate customers have this dynamic of adjustment looking at loss ratio cash. Now in 2021 especially, we have been feeling a recovery and the need of a gradual recovery in adjustment rates that will address the reality that we are seeing here, and that I will call post-COVID, even though the COVID has not yet gone away, but we see a scenario more normal levels. Now going into your second question, I think that we need to celebrate good news whenever we have good news. In Brazil today, we have an excellent news in the COVID arena. So talking about SulAmérica scenario, more specifically, we have 159 people hospitalized. We have had as many as 3,000 people hospitalized due to COVID. So there is a clear trend for improvement. It's not just by chance. We already have a share of the population vaccinated in Brazil, 75% with at least one dose, higher than the U.K. and Israel. More than half of the population has already two doses, 58% of the population with two doses. States like São Paulo that you know that represents a considerable share in our portfolio has more than 70% of the persons vaccinated. In addition, the weather is also helping. We are transitioning from the spring to the summer, unlike Europe, where the winter is starting and we see some worsening in a few countries. I think that the scenario in Brazil is very favorable. Still, in answering your first question about commercial strategy, we should talk about new sales, but we are keeping a commercial dynamic that will address the need of cost to face claims, which makes it possible to have a long-term relationship. We want to have a sustainable relationship with very conscious pricing, regardless of movements in terms of commercial dynamics that might be slightly more aggressive where we do not see any justification. Lastly, you mentioned PEONA over the last few periods. In this, everything that happened during the COVID, we used to have a very high degree of uncertainty. As the pandemic is stabilizing and as vaccination rates improve and we are more normalized in terms of claims, we are okay in terms of PEONA, and it is fully adjusted and correct for the reality. Thank you very much. I hope I have answered your question. Great, Raquel. Thank you. The next question comes from Samuel Alves of BTG Pactual. Good morning. Good morning, everyone. I have three quick questions. First, about health loss ratio. Could you please tell us what was the medical utilization in September? Was it much lower than your average, especially for recurrent claims? What is the profitability of mid-ticket ex-COVID? Is it really impacting your final results or not? Thirdly, about SFH receivables. Last year, the federal justice just saw some of these cases, but there is still an increase in the balance of amounts receivables. Please update us on that and what else you can say to add. I'm sorry, his mic was breaking up. Well, Samuel, this is Raquel speaking. Let me start with the first two questions, and then Bottas can talk about SFH. Loss ratio. I'm just going to show you the trend. As we can see, a lower amount of COVID claims in the overall mix, we can see a positive trend curve. September better than August, and so on and so forth. Yes, there is a gradual reduction of the cases of COVID. As to mid-ticket, loss ratio ex-COVID, it has been exceptional. Even with the impact of COVID, the mid-tickets loss ratio has been better than the loss ratio of our portfolio at large. It really makes us very confident. There is a significant mass, especially when we consider the products Direto, over 40,000 lives coming from that. Our mid-ticket strategy with Paraná, Ponta Grossa's portfolio, and we have very robust results. If we add up, it's over 160,000 lives like that. Bottas, please. Thank you. Well, Samuel, thank you for your question. The receivables for SFH, despite the impact in our balance and receivables, and even though it does not reflect the positive impact of the decision of the Supreme Court, this is a result of active lawsuits which were ongoing, and there is an aging involved. They tend to be in place for a while, and there was a historical basis, which was very subject to decisions at the state level. There are some recent statistics which mean 40% increase of now new lawsuits, which go straight to federal justice, which is very good because then there is a significant decrease of the average cost of these lawsuits. However, the legal framework along this topic has really improved, and we can have reimbursement of receivables much faster than initially thought. The Treasury Fund has hired it, and all the reimbursement is calculated by them. We have two initiatives. One, which is a positive consequence, making these lawsuits be directed straight to federal courts with very significant expectations that the federal courts, with the inclusion of Caixa, can pay straight to us, so then the insurance wouldn't have to apply to get a reimbursement and all of that. At the same time, a much more efficient procedure, because then Caixa would automatically process the reimbursements to insurance companies, and that would mean faster, more efficient. The increasing balance has not been much, but we can see some stabilization, and we have expectations to start getting recovery. It's going to take a long time. Now, you had also asked whether we could really set apart receivables. They are as part of our regulated corporate, the insurance company that had been operating our automobile business or used to operate our automobile business. It's part of SulAmérica Holding. It's a subsidiary company of the group. It's part of a company which is no longer operational. It does not have active insurance. They are just run-off portfolio only, and we have shown that in our balance sheet. We are going to separate the impact of these receivables on the total profitability of the company. These receivables probably impact return on average equity between 3 and 4 percentage points of our total numbers. It's important to, from the managerial perspective, shows this in fact, and keep on working as is at the federal court, really encouraging the fund to ask Caixa to make direct agreements, and at the same time, expecting the reimbursements to be expedite. Thank you, Bottas. Thank you, Raquel. Our next question comes from Mr. Flávio Yoshida from the Bank of America. Hello, good morning, everyone. Thank you very much for taking my question. What is the growth dynamics? When we see the growth of revenues year-on-year comparing the third quarter against the second quarter, we see a slowdown of the growth of, from 8% to almost 6% now. So I can imagine that the growth in the number of members is associated to that. But could you give us some more color on this competition scenario as a whole? Still on that theme and related to that, can you tell me how are negotiations for affinity plans going on? There are adjustments. We see a scenario of inflation putting pressure on your cost base. At the same time, there's a challenging scenario for next year. What leads us to imagine that it must be very difficult to negotiate. You could comment a little bit on that. I would appreciate. Hi, Flávio. Raquel answering your question. Thank you for your question. Now, talking about premiums in affinity plans, number one thing that we need to consider is the portfolio mix. In affinity plans, we have some affinity plans that are historically slightly more leveraged. Their sales performance is not as good as it could be. Now, corporate as a whole, we are growing in lives, but we also need to consider the entry mix of these new lives. As Direto is successful, somehow it depresses the average or the mid-ticket. Adjustments are still impacted by what I mentioned a few minutes ago, considering the dynamics of negotiating adjustments, looking at loss ratio cash. Along these last few months that we are negotiating, I'm negotiating adjustments for January, so I get the track record for the last few months. It stops in October, so it takes still a significant share of what happened when we had a higher impact of the pandemic. Yes, it has an impact. If negotiations are difficult, well, they're very difficult. Now we are having a rise in interest rates that is disseminated, that puts pressure on that and a recovery of the medical inflation. We were having a drop in medical inflation in the past few years, and there is a reversal of this curve. What worsens the situation is the commercial dynamic that we have with the market, with the reality that we have been doing, with some players. On the whole, the after-sales team is doing excellent work with our customers. The most important thing is for us to simulate and see what will be the loss ratio scenario for future years. We work with them both in terms of adjustments and also in proposals that they may receive from the market. 110 loss ratio, and then there is an adjustment, and they come up with a proposal from the competition that is well below. Next year we are going to have adjustments at about 50%. We have been working a lot in terms of education. Conversion of adjustments has been growing up in the past few months, and I consider the scenario very favorable for us to have increasingly more conscious negotiations with our customers. We have long-term sustainable relationships. This is the most important thing. Thank you very much. Our next- Ricardo Boiati from Banco Safra. The next question comes from Ricardo Boiati, from Banco Safra. Good morning, everyone. I have a question concerning the product Direto. Raquel, can you please elaborate concerning the performance of a Direto portfolio, the most mature cities and, as opposed to the cities you are joining now, any relevant improvement in terms of sales, compliance with the product, and where have you got clients from? Are clients which are trading down from traditional products from the competition, are they coming from verticalized, products? What is the kind of trade-down that you have got within SulAmérica? If you could please, shed some light on, the progression of Direto, I think it would be very useful. In terms of competition, has your margins improved? Are the aggressive players maintain their, aggressive margins? Are they impacting it more or less? Thank you. Hello. Thank you for the question. I'm going to start from the end. We still see an erratic behavior. In our last call, I think I mentioned I was kind of optimistic with a collective awareness of the market, especially in terms of pricing of new clients and new products. For the past two months, I've seen a somewhat fiercer competition, so I still think it's a very erratic behavior. Our strategy, though, is not going to change in terms of pricing strategies observed by other players. Regardless of being Direto non-verticalized competitors or those which are verticalized product suppliers, we can still see fierce competition. The answer that I have just given to Flávio, talking about a client of a loss ratio of 110 and a competitor was offering a discount. Well, unbelievable. Well, concerning Direto, I mentioned in my presentation that Rio is, well, where the product started, it's more mature and there are more sales, more lives, very good conversion. Pernambuco has also shown great performance. São Paulo is also picking up. Joinville has been helping a lot. Something interesting about Joinville, the launch of Direto in Joinville allow really levered its sales, but also of Paraná Clínicas. There are some negotiations that the commercial areas of both units carry out together, and the clients can define where they have a better fit. Three companies were negotiating this week and they could go for Paraná Clínicas or Direto. One stayed in Direto, two went to Paraná Clínicas. To some extent, it drives not only Diretos, but all mid-ticket products. There are some companies coming from full verticalized products. The examples of Joinville, for example, and one of them is from Unimed. There are clients also coming from other players in the market downgrading their products, and a very small product coming from SulAmérica, which is, as you mentioned, cannibalization. But still, that would be positive because we want to have options and we want to maintain our clients with us and at profitable levels. But that's not most of them. Quite to the contrary, exactly the smallest portion of sales. Great, Raquel. Well, if I may, based on your question and speaking of competition, the aggressive competition has a price to pay. When we analyze the relative competition and the loss ratio of these extremely aggressive players, we are talking about 10 percentage points more in loss ratio. This is important when we talk about balance, consistent growth and maintaining profitability as an important component of our strategy. Clear. Thank you very much. Our next question comes from Mr. Guilherme from JPMorgan. Good morning, everyone. Thank you very much for taking questions. It's my question is more long-term strategies about it. Your main insurance peer, there was an investor day focusing and launching a significant ARMO with significant investment in acquisitions and construction of hospitals. I would like to hear from you, how do you understand this movement of insurance companies moving towards that direction in this industry, going towards the side of hospitals? And what are the implications for you within the competitive environment? Thank you. Guilherme, thank you very much for your question. I'm going to begin here, and then I'll, Raquel will complement my answer. So we are, in a way, in a mid-ticket strategy, and we are not operating on another segment lower than that. It is a combination. There is no virtual verticalization. So similar to the Direto. But the Direto is really an entry point for this going into the vertical strategy. Direto is 100% based on sharing an alternative rather than a traditional model that is based on frequency only. So there is a strong partnership of SulAmérica with healthcare providers and most notably hospitals demonstrating this strategy. The other thing that we are doing in terms of going to mid-ticket through the acquisition of portfolios and carriers that we call, that are semi-vertical. Semi-vertical, this is another element to increase our partnership with healthcare providers, most notably, hospital administrators. Here, I would like to mention our partnership with Paraná Clínicas. There is a large concentration and resolution rate in terms of primary care, in terms of outpatient and diagnostic, in partnership with hospitals that are part of that regional area. We have the example of Paraná Clínicas, which is an example that we have the intention of replicating. Our mid-ticket and long-term strategy is very much based on this strategy of virtual verticalization and semi-verticalization. For both of them, this is based on the assumption of a strengthening of our relationship with providers, especially hospitals. We don't want to compete with our providers, the hospitals, with more sharing of strategies for long-term orientation. Raquel, please feel free. Yes, that's it, Bottas. You said it perfectly. Thank you very much, Bottas. The next question comes from Mauricio Cepeda with Credit Suisse. Hello. Good morning, Ricardo, Raquel, everyone. In terms of service providers, hospitals, diagnostic centers are now complaining of the inflation of material price, occupancy rate has dropped. In the hospitals, there is still a kind of a reboot demand. Have you seen any pressure of renegotiating prices? Are you afraid of having that? How are you negotiating with the service providers for next year? Thank you, Cepeda, for your answer. This is Raquel speaking. Oh, yes, a very complex moment of renegotiating negotiation with clients and also with providers. The inflation rates have really impacted strongly. We used to have a completely different scenario 12 or 24 months ago. It's not an easy negotiation, but there is a very relevant point for any negotiation, which is a bargaining power relevance. We rarely represent less than 25, 30% of the business of our main providers. It really take us to a different negotiation term, especially because it's a win-win situation. Our negotiations go from what we used to have of a purchase of buyers, simply buyer trying to get the best prices, to negotiations that are really let's say, a composition of a better demand or creation of a joint product with diluted risks on both sides. Yes, it has been complex negotiations, but we are moving ahead, everything under control, bringing about innovations and initiatives that really make a sense to sustainability of our sector. Thank you. Very clear. If there are no further questions, I would like to give conference back over to Mr. Bottas for his closing remarks. Well, just as I started this meeting, I would like to close reinforcing my optimistic vision of the important indications that we see that show that we are closer to the end of the pandemic. Furthermore, we continue with our development agenda based on our operational strength, recognition of the value of our brand, and our capacity for innovation, both by brokers and our customers and members. Added to our strong capitalization, we are very well-positioned to take advantage and develop new business opportunities. Thank you all for your attendance in our conference call. To my colleagues and other executives here with me, my special thank you to the 7 million members and customers for our strong relationship, your relationship with the company at difficult times. It's always important for us to appreciate that. Our more than 4,000 employees for their engagement, our more than 20,000 medical providers and healthcare workers and the teams of 1,200 hospitals, part of our network throughout Brazil, who made all efforts to assure quality of care to all our members during this difficult period. In addition to the partnership with more than 36,000 brokers who are instrumental for us to grow in a relevant way at these very challenging times. As I said, we're leaving them behind. Finally, our more than 115,000 shareholders for your trust. Thank you very much and have a great day. SulAmérica's conference call has now ended. Thank you very much for your attendance, and have a good day.