In This Article:
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Revenue Growth: 11% year-over-year, reaching BRL739 million.
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Porto Seguro Vehicles: 6 million vehicles insured, with a loss ratio of 57.3%.
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Porto Saude: Added 131,000 lives in health insurance; 2.3-percentage-point reduction in claim rate.
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Porto Bank Revenue Growth: 24% increase with a 1-percentage-point improvement in delinquency indicator.
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Porto Servico EBITDA: BRL106 million with an EBITDA margin of 17%.
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Insurance Vertical ROI: 29% return on investment.
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Porto Saude ROI: 22% return on investment.
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Porto Bank Profitability: 29% profitability.
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Porto Servico Profitability: 24% profitability.
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Return on Asset Equity (ROAE): 23% for the quarter.
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Net Income: BRL430 million for the quarter.
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Porto Saude Revenue Growth: Over 40% year-on-year.
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Porto Bank Revenue: BRL1.5 million with a 24% year-on-year growth.
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Credit Portfolio Growth: 9.2% driven by credit cards.
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Porto Servico EBITDA: More than BRL100 million with ROAE of 40%.
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Guidance Update: Health vertical loss ratio guidance reduced to 75%-79%; revenue growth expectation increased to 18%-24%.
Release Date: November 12, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Porto Seguro SA (BSP:PSSA3) reported a revenue growth of 11% compared to the same period last year, reaching BRL739 million, with a 32.3% increase.
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The company added 131,000 new lives in its health insurance segment, Porto Saude, and achieved a significant reduction of 2.3 percentage points in the vertical claim rate.
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Porto Bank experienced a 24% revenue growth with an improvement in the delinquency indicator by 1 percentage point.
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Porto Servico achieved an EBITDA of BRL106 million with an EBITDA margin of 17%, driven by business diversification and revenue growth from customers outside the Porto ecosystem.
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The company maintained a strong return on asset equity of 23% for the quarter, with good cash generation and increased margins supporting its growth and diversification strategy.
Negative Points
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The auto insurance segment experienced a minor retraction in the quarter due to maintaining profitability policies.
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There was a 5% drop in premium in auto insurance, although it was offset by growth in other segments.
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The company faced challenges in maintaining the high level of profitability from the previous year, particularly in the auto insurance segment.
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There was a significant increase in claims in the auto segment, with a 3.5 percentage point rise year-on-year due to an uncommon claim in the third quarter.
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The company anticipates potential regulatory changes and tax reforms in Brazil, which could impact its operations and profitability.