Earnings Call: Q4 2025

Mar 12, 2026

Summary

FY25 record profit reached CLP 280 billion, up 89% YoY, with 23.4% ROE. Q4 growth across subsidiaries was led by strong investment results, healthcare activity, and Banco Internacional loan growth.

Okay. Hello, everyone, and thank you for joining us. ILC's fourth quarter 2025 results conference call. Before we begin, I will invite everyone to download from our website the presentation prepared especially for this call. This document provides an overview of the key events and achievement of the period, as well as the financial performance and context of each of our businesses. Today's call will be divided into five sections. First, we will review the economic context for the period, followed by ILC consolidated result for 4Q25. Next, we will analyze our subsidiaries' financial performance and key highlights for the period. After that, we will provide an update on our financial position, and finally, we will conclude with a Q&A section. Now, I will hand the call over to Juan Pablo Undurraga, CFO of ILC, who will review the period's context, ILC's 2025 milestone, and our consolidated result for the year. Thanks, Gustavo. We good? Now if we see the slide that is on the screen. This slide presents the macroeconomic context for the first fourth quarter of 2025 compared to the fourth quarter of 2025. Looking at the top left chart, the IPSA was a standout performer this quarter. While it saw a modest 3.4% return in fourth quarter of 2024, it grew by 16.7% in the fourth quarter of this year. In contrast, the S&P 500 and Pension Fund C remained relatively stable at 2.3% and 1.8% respectively, showing that the local equity markets outperformed global and balanced benchmarks during the period. This market optimism was supported by the central bank's persistent easing cycle, which you can see in the monetary policy rate chart. We've come a long way from the 11.25% rate seen in the early 2023. By October 2025, the rate was lowered to 4.75%, finally closing the year in December at 4.5%. The primary reason the central bank has been able to cut rate is the successful cooling of inflation. If we look at the bottom left quarterly CPI variation dropped to just 0.1% in the fourth quarter of 2025, down from 1% in the same period last year. Regarding the ILC 2025 milestones, we can see in this slide, we recall the events that have occurred during the year. First, March marked ILC's reincorporation into the IPSA index. This transition underscores our market liquidity and reinforces our position as a key component of the Chilean equity market. In the banking sector, Banco Internacional achieved two critical objectives during the first half of the year. In April, the bank successfully completed its AT1 bond issuance, strengthening its Tier 1 capital base. Then in June, the bank consolidated its position in the auto finance space by reaching 100% ownership of Autofin, allowing for our full operational integration and strategic alignment. In the insurance sector, Confuturo was awarded 50% of Contract 12 of the Disability and Survivor Insurance Tender, reinforcing its strong position in the annuities and life insurance markets. In November, Fitch Ratings upgraded the credit ratings for both ILC and Banco Internacional from BBB to BBB+. The year concluded in December with a major expansion in our healthcare vertical. RedSalud completed the acquisition of Nuevo Sanatorio Alemán, a move that substantially increases our regional footprint and solidifies our commitment to providing comprehensive healthcare coverage across the country. In the next slide, we present the performance of ILC stock, which has continued to deliver strong returns, outperforming the IPSA in both 2025 and year-to-date 2026. Our shares delivered 139% return in 2025, more than double the IPSA's gain over the same period. A key milestone supporting this performance was our re-entry into the IPSA index on March 24th, which boosts both the visibility and liquidity of our stock. On the next slide, we highlight the results of ILC in 2025. Driven by solid operational execution across our business lines and strong performance in the financial markets. ILC closed the year with a record profit of CLP 280 billion, representing an 89% increase compared to the CLP 148 billion reported in 2024. With these results, ILC achieved a return on equity of 23.4% for the period. As shown in the historical chart, ILC consistently maintained double-digit profitability over the years, demonstrating both steady growth and resilience across different market cycles. On this slide, we can see that during the fourth quarter of 2025, ILC reported a consolidated profit of CLP 93.5 billion compared to CLP 37.3 billion on the past year, 2024. All subsidiaries within the portfolio recorded an increase in the profit contribution during this period. The performance of subsidiaries with exposure to local financial assets, specifically Confuturo and Habitat, influenced the consolidated results. Confuturo's contribution increased by CLP 28 billion, while Habitat's contribution increased by CLP 5 billion quarter over quarter. The results for Review Segura are attributed to the awarding of two fractions of the CISCO contract eight. In the healthcare provider segment, RedSalud recorded an increase in profit of CLP 3.6 billion, a result linked to inpatient activity levels during the quarter. On the other hand, Consalud reported a profit increase of CLP 3.2 billion. This variation is due to two factors, the implementation of the regulatory framework defined by the ISAPRE short law, and a reduction in the loss ratio following a decrease in medical license costs. Now, I will turn the call over Gustavo, and he will review the main operational events and key financial views of ILC subsidiaries. Thank you, Juan Pablo. Now we will review ILC's consolidated performance. We will take a closer look at the performance of each of our main subsidiaries. In this section, we will go division by division to better understand the key drivers behind each business, the challenges faced in the quarter, and the strategic progress achieved in line with our long-term plan. Let's begin with Banco Internacional. Moving to slide number 13. As of December 2025, Banco Internacional's total loan portfolio grew by 7.9% year-over-year, positioning the bank while the industry expanded by just 2.5%. The commercial loan portfolio grew by 5%, meanwhile, the commercial loans increased by 27%, driven by the expansion of the Autofin's portfolio. As a result, Banco Internacional's market share increased in commercial loans from 2.77% to 2.91%. Commercial loans grew from 1.2% to 1.43%, and mortgage loans grew from 0.40% to 0.90%. In terms of client growth, in the chart below, the bank continued to expand its footprint. Commercial clients increased by 8.9%, reaching over 8,800 companies, and retail clients increased by 26%, totaling more than 108,000 clients, including Banco Internacional and Autofin. With this, the bank has reached 118,000 total clients. Looking ahead, the bank remains focused on expanding its presence in the large corporate segment, consolidation of the retail banking and auto finance segment, and third, diversifying both its product offering and funding sources. This line, as shown in the next slide number 14, Banco Internacional has continued to consolidate its funding structure, reflecting a clear shift towards greater diversification and long-term stability. As of December 2025, the bank's funding base shows an increased reliance on retail time deposits, which now represent close to 24% of the total funding. At the same time, the share of bank funding declined from 11% to 7%, reducing dependence on short-term sources. It is important to mention that in April the bank completed the issuance of the first AT1 bond. It was the first bond of this characteristic in the Chilean industry. It was about for UF 2 million and capital increases for a total of CLP 42.8 billion. Looking ahead, we continue to see many opportunities, like scaling retail financing by improving client acquisition and retention, expanding the corporate funding base, and developing digital financial products aligned with an efficient onboarding process. As shown in the next slide, Banco Internacional's gross operating result grew by 7.3% quarter-over-quarter, reaching CLP 54.8 billion. This increase was supported by higher loan volumes and the contribution from Autofin, partially offset by lower spreads and lower treasury income. During the quarter, improved results were also due to the recognition of the income related to the alliance with the insurer MAPFRE. Operating expenses increased 5.5%, mainly due to the Autofin expansion, which continues to expand its operation. As a result, the efficiency ratio decreased by 94 basis points quarter-over-quarter, reaching 56%. Banco Internacional remains focused on sustaining profitable growth by expanding its loan portfolio while continuing to manage costs and integration efforts with Autofin. The next slide shows total risk expenses, which were decreased by CLP 8.3 billion in the fourth quarter of 2025 compared to the last quarter of the previous year. The main factor for this decrease was CLP 8 billion release of voluntary provision during the fourth quarter of 2025. This reduction was partially offset by an increase in provision within Autofin, a result linked to the expansion of its operation and portfolio during this period. In terms of asset quality indicators, the non-performing, I mean, the NPL, the non-performing loan ratio, stood at 2.8% as of December 2025, compared to 2.9% in December 2024. The risk index remained stable at 1.9%. The collateral coverage stood at 68%, above the industry average of 53%. Finally, the bank remains fully compliant with Basel III requirements, with a solvency ratio of 17% as of the end of 2025. This slide shows Banco Internacional's profit and ROE evolution. In the fourth quarter of 2025, the bank recorded a net income of CLP 20.1 billion, compared to CLP 13.3 billion in the last quarter of the previous year. The bank reported a return on average equity of 12.7% for the year 2025. Autofin, for its part, accounted for 24.4% of Banco Internacional's quarterly earnings, reflecting its role within the bank's consolidated result. The results for the period were driven by three main factors: loan growth, an increase in operational results, and the upfront payment association with the commercial alliance with MAPFRE. These factors were partially offset by an increase in operating expenses, as we mentioned, and a decrease in treasury results. If we move to the annuity market, as shown in slide 19. In the fourth quarter of 2025, we continued to see strong demand for annuities. During the quarter, the annuity rate stood at 2.75% compared to a programmed withdrawal rate of 3.41%. This spread continues to favor annuity as an attractive retirement option. As a result, 65% of pensioners choose annuities, while 35% opted for programmed withdrawal. The 2025 pension reform reduced the legal requirement for annuities from 8 UF to 2 UF. That started in the last quarter of 2025 and continues to broaden access and reinforce the relevance of this retirement alternative. Total induced free premiums reached CLP 35 million, increasing 32% quarter-over-quarter. Confuturo's premium amounted to CLP 4.9 million, with market share at 14%. It is important to mention here that we align our sales performance with investment opportunities and generation of shareholder spread. Confuturo remains one of the leading players in the annuity market, supported by sustained demand and regulatory development. This quarter, sales were higher than our usual levels, primarily due to we see a higher expected internal rate of return during the period. Slide 20 highlights Confuturo's focus on strengthening its direct sales channel and maintaining strict cost efficiency. In the fourth quarter of 2025, 43% of our life annuity premiums came from direct channel, above the industry average of 33%. On the cost side, SG&As reached CLP 10.8 billion, increasing 8.6% compared to the last quarter of 2024. That was mainly due to higher personnel costs. Despite this increase, SG&As over asset under management stood at 43 basis points during the quarter, stable compared to last quarter of 2024. In slide 21, there was a problem with this chart, but we show the investment result of Confuturo's portfolio in the fourth quarter of 2025. The investment result of Confuturo portfolio in the fourth quarter of 2025 totaled CLP 118 billion, representing a 16% increase quarter-over-quarter. This strong performance was mainly explained by higher return in local fixed income, which contributed CLP 10.4 billion and investment funds added CLP 10 billion. In addition, equities local and foreign increased CLP 1.1 billion and real estate portfolio increased its contribution in CLP 3.1 billion. In slide number 22, in the fourth quarter of 2025, Confuturo reported a net income of CLP 43.1 billion compared to CLP 16.2 billion recorded in 4Q24, representing a 162.2% increase. This better result was mainly driven by higher investment income. As of December 2025, Confuturo achieved an ROE of 19.1% from the company sustained focus on its long-term investment strategy, especially by growing its portfolio of alternative assets, including real estate, in order to improve future return and diversification. Moving to the pension segment, AFP Habitat, as shown in slide number 24. In the fourth quarter of 2025, revenues reached CLP 66.8 billion, a 3.6% increase compared to the same quarter of the previous year. This growth was mainly supported by higher fee income from mandatory contributions, driven by a 7.8% increase in the average taxable income per contributor. As December 2025, Habitat contributors had an average taxable income 24% higher than the industry average, reinforcing the company's strong positioning in the mid to high income segment. It was partially offset by a 3% increase in the number of contributors year-over-year. Legal reserves reached CLP 9.9 billion, compared to a CLP 8.3 billion loss in 4Q24. This result was mainly driven by a stronger performance of funds with higher exposure to local equities and fixed income. In the next slide, both our international operation in Peru and Colombia reported higher revenues in the fourth quarter of 2025, supported by growth in fixed income. In Peru, revenues increased 36% quarter-over-quarter, reaching CLP 12.3 billion and legal reserve improved, totaling CLP 2.1 billion. At Colfondos in Colombia, revenues grew 17.3% quarter-over-quarter, reaching CLP 26.4 billion. Legal reserve returns decreased, reaching CLP 0.3 billion loss compared to CLP 200 million profit in 4Q24. On slide 26, we show the evolution of profit before taxes and the legal reserve for both AFP Habitat and AAISA. Results were mainly supported by higher legal reserve returns, reflecting the performance of funds with greater exposure to local investments. Excluding this effect, like this chart shows, in the fourth quarter of 2025, AFP Habitat reported a profit before taxes and legal reserve of CLP 36.7 billion, 4.1% lower compared to the same quarter of the previous year. Habitat's quarterly decrease was mainly driven by higher SG&As during the quarter. AAISA posted a profit before taxes and legal reserve of CLP 9.3 billion, which implies a 52.7% increase compared to the last quarter of 2024. This result was primarily explained by higher revenues in Habitat Peru and Colfondos, as we mentioned, together with the contribution of Andina Vida, the new insurance company in this country that started its operation at the end of 2024. Moving to the health segment, slide 28 shows RedSalud activity indicators. In the fourth quarter of 2025, RedSalud revenues reached CLP 218 billion, a 13.6% increase compared to the same period in 2024. Broad-based with inpatient, outpatient, and dental services raising 14.9%, 11.7%, and 10%. In inpatient care, revenue growth was mainly driven by higher income from surgical procedures, critical care units, and hospitalization. The number of surgeries increased 2.7% quarter-over-quarter, while occupancy across the network rose to 77.7% compared to 73.9% in the last quarter of 2024, reflecting a more complex case mix. Outpatient revenues grew 11.7%, supported by higher activity in laboratory services, imaging, and medical consultation, as well as the continued expansion of clinics and medical centers. Dental's revenues increased 10%, boosted by higher demand in this segment. RedSalud's growth was supported by rising demand and more complex inpatient mix and increased activity in both inpatient and outpatient activity. Moving to the next slide. RedSalud's EBITDA margin reached 11.7%, compared to 10.8% recorded in the last quarter of 2024. The increase in EBITDA margin was primarily driven by a better mix in the inpatient segment and higher activity in dental and outpatient services. On the other hand, the Red Dental shows the margin was affected mainly by clinical material costs, which reduced the margin by 1.2%, reflecting the change in the mix of services that we just mentioned. This slide details the geographic footprint of RedSalud. The network has the largest geographic coverage among private healthcare providers in Chile. As of the end of 2025, the company finalized the acquisition of Sanatorio Alemán, as Juan Pablo mentioned at the beginning of the call. The acquisition of Sanatorio allows the network to cover a zone of 2 million population. This transaction will begin consolidation in 2026, at the beginning of 2026. It adds 152 beds, 135 outpatient consulting rooms, and 31 emergency boxes. The integration represents an estimated 10%-15% increase in both revenues and EBITDA for the health network at the beginning. On slide 31, we can see that RedSalud's EBITDA grew mainly in metropolitan and regional hospitals during the quarter. Consolidated EBITDA increased 23.5% quarter-over-quarter, reaching CLP 25.5 billion in the fourth quarter of 2025, with a margin of 11.7% compared to 10.8% in fourth quarter of 2024. By business unit, EBITDA increased by CLP 1.2 billion at the metropolitan region hospitals, reaching a margin of 10.1%. Regional hospitals showed a similar trend, with an increase of CLP 2.4 billion on a margin of 10.8%. Outpatient and dental centers decreased by CLP 200 million, reaching a margin of 15.6%. For the full year, and this is important to highlight, RedSalud reached a total EBITDA of CLP 100 billion, representing an annual EBITDA margin of 11.9%. This figure doesn't include the last acquisition of Sanatorio Alemán. Important to. On slide 32, the other side of the coin, the Consalud, the healthcare insurance provider. We can see that Consalud's average monthly contribution remained stable at UF 5.7 per affiliate in the fourth quarter of 2025, consolidating the recovery observed after the Ley Corta Isapre implementation. This stabilization reflects the combined effect of regulatory measures, including the implementation of the extraordinary premium in late 2024 and the Ley Corta Isapre adjustments. Together, these have helped restore contribution to levels consistent with the historical average. Regarding the cost, a reduction in the cost of medical leaves also contributed to the quarterly results. The number of medical leaves decreased by 26%. This reduction was primarily attributed to a lower frequency of licenses related to mental health and respiratory conditions. Furthermore, the average subsidy per license decreased by 13% during the period. These two factors together lowered the overall expenditure of leave of absence payment compared to the previous year. In this context, the loss ratio stood at 79.6% in 4Q 2025, down from 86.3% in the fourth quarter, continuing the improving trend, pointing towards a more balanced outlook for Consalud. Oh. There we go. Moving on the sub-result on slide 33. As we mentioned, we are seeing a stable recurring profit following the approval of the payment plan and a reduction in medical leave costs. If you look at the gray bars, you will notice a trend of stability in our recurrent results. All factors mentioned before have not only helped to fully comply with the payment plan mandated by the regulation, but also stabilized the sub-results. Moving on to slide number 34, we can see that Vida Cámara is continuing to expand its operation during the fourth quarter of 2025. The number of beneficiaries reached 658,000, up 3.9% year-over-year. We grew across both group and individual health insurance. Individual insurance grew by 53%, supported by policies associated with preferred provider agreements with RedSalud. This growth translated into a higher premium collection in both health and life insurance. Claims cost decreased by 3.2% during the quarter, mainly driven by lower inpatient coverage in group health insurance. Loss ratio reached 78.3% in Q4 2025 compared to 91.1% in Q4 2024. Now, if we move to slide number 36, I guess. Yes, which shows ILC's financial position. This slide shows how ILC's well-managed debt maturity profile and liquidity position. As of December 2025, net financial debt totaled CLP 410 billion, with a net financial debt to equity ratio of 0.33 times. Liquidity stood at CLP 175.2 billion, composed mainly of cash and equivalents and an investment portfolio of liquid assets. As we mentioned at the beginning of the call, Fitch Ratings upgraded ILC's international credit rating to BBB+. With this improvement rating, all rating agencies now share a BBB+ international rating for ILC. This upgrade reflects the company's strong financial position. Accordingly to the agency, this improvement is driven by several factors. Among them are a diversified business portfolio, robust risk management practices supported by a stable regulatory framework, and also a sustained level of profitability. Finally, to sum up, turning to slide number 38, I'd like to highlight the key advances towards our strategic goals. First, at Banco Internacional, we continue expanding our client base, reaching 118,000 clients as of the end of 2025 and delivering 7.9% loan growth above the industry, 2.5%. Milestones this year include increasing our stake in Autofin to 100%, issuing the first AT1 bond in Chile, forging new strategic alliance. Confuturo, life insurance company, maintain its strong position in the annuity market, supported by higher spreads, efficiency and value creation, achieving a 14% market share in the quarter and strong financial performance during the year. AFP Habitat remained focused on the mid to high income segment, benefiting this quarter from local stronger financial market performance. In the healthcare business, Consalud reinforced its leadership in private coverage, strengthening high complexity services. Vida reached CLP 100 billion with a 12% margin during the year, while Vida Cámara, for its part, the individual health insurance grew 53% year-over-year, reaching 51,000 beneficiaries. In Consalud, the implementation of the Isapre short law has continued to stabilizing the health insurance system with positive effects at Consalud. Finally, at ILC level, as we have mentioned in the past, we remain fully committed, I mean, for purpose of creating social and economic value. We achieved a record profit this year of CLP 280 billion, I mean, in terms of Chilean pesos, supported by operating progress across all our businesses in a framework of stronger financial markets. This concludes today's presentation. Now we will open the floor for any questions you may have. For any question, you can send us by the box that says question and answers. There is a question of Consalud. What is the outlook for Consalud following the recent regulatory changes? I could take that question, and if you want to add something, Juan Pablo, please feel free. The outlook for Consalud is positive, following the implementation of the short law of Isapre or Ley Corta Isapre, and a reduction in the medical absence costs. We are seeing a more active commercial environment. However, we are currently seeing and also analyzing how much of the decrease in medical costs is structural versus a certain theory effect. More important, however, these developments are driving initiatives that improve the structure of the system and ensure the proper insurance of medical leaves. Regarding the payment plan, we are continuously analyzing any potential early payment, but those decision will be made on a merit basis considering our cash surplus and forward-looking growth prospects. Okay. There are no other questions. That is all for today. If you have any further questions, please feel free to contact our investor relations team. Thank you for joining this conference call, and we hope to see you next quarter.