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• Total Revenue (Q4 '24): BRL10 billion, a 14% increase year-over-year.

• Total Revenue (2024): BRL37 billion, a 13% growth.

• Recurring Net Income (Q4 '24): BRL710 million.

• Recurring Net Income (2024): BRL2.7 billion, an 18% increase.

• Return on Average Equity (ROAE) (Q4 '24): 21.5%.

• Return on Average Equity (ROAE) (2024): 20.3%, a 0.6 percentage point increase from 2023.

• Clients: 18 million clients and 30 million in the Porto ecosystem.

• Auto Loss Ratio: 56.5%, a 0.6 percentage point increase year-over-year.

• Porto Saude Beneficiaries: 132,000 lives added.

• Porto Saude Loss Ratio: Significant drop of 0.7 percentage points.

• Bank Revenue Growth: 21% increase.

• Porto Servico EBITDA: BRL103 million with a 16.1% EBITDA margin.

• Insurance Revenue (Q4 '24): BRL5.6 billion.

• Insurance Portfolio ROAE: Above 25%.

• Porto Health Revenue (Q4 '24): BRL1.9 billion, a 34.7% growth.

• Porto Service Revenue (Q4 '24): BRL640 million.

• Insurance ROAE: Above 28%.

• Net Income (Porto Saude): BRL394 million.

• Bank Revenue (Q4 '24): BRL1.6 million.

• Bank Net Income (Q4 '24): BRL162 million.

• Loan Portfolio Growth: 9.8% increase.

• Porto Services EBITDA (2024): BRL411 million with a 16.4% margin.

• Warning! GuruFocus has detected 6 Warning Signs with CAE.

Release Date: February 14, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Porto Seguro SA (BSP:PSSA3) achieved a total revenue of BRL10 billion in Q4 2024, marking a 14% increase compared to the same period last year.

• The company reported a recurring net income of BRL710 million for the quarter, contributing to a full-year recurring net income of BRL2.7 billion, an 18% growth year-over-year.

• Porto Seguro SA's ROAE reached 21.5% for the quarter and 20.3% for the entire year, showing a growth of 0.6 percentage points compared to 2023.

• The company expanded its client base to 18 million clients and 30 million in the Porto ecosystem, enhancing cross-selling opportunities.

• Porto Seguro SA's bank segment experienced a revenue growth of 21% for the year, with a significant drop in default rates by 1.4 percentage points.

Negative Points

• The auto insurance segment's loss ratio increased by 0.6 percentage points to 56.5% compared to the previous year.

• The company faced nonrecurring losses of BRL100 million in 2024 due to the closure of certain operations, which will not recur in 2025.

• Porto Seguro SA's financial results in the insurance vertical saw a quarter-on-quarter loss of BRL30 million, attributed to changes in payment terms.

• The company anticipates a higher capital allocation requirement due to the Central Bank's Resolution 4966, although the impact is expected to be below 5%.

• The effective tax rate was slightly higher in Q4, driven by higher ROAEs in certain units, reducing the tax shield on a proportional basis.