Q3 2024 Porto Seguro SA Earnings Call (English, Portuguese) Transcript
Key Points
- 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.
- 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.
- Porto Bank experienced a 24% revenue growth with an improvement in the delinquency indicator by 1 percentage point.
- 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.
- 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.
- The auto insurance segment experienced a minor retraction in the quarter due to maintaining profitability policies.
- There was a 5% drop in premium in auto insurance, although it was offset by growth in other segments.
- The company faced challenges in maintaining the high level of profitability from the previous year, particularly in the auto insurance segment.
- 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.
- The company anticipates potential regulatory changes and tax reforms in Brazil, which could impact its operations and profitability.
I would like to inform you that the presentation is being recorded and translated into English. The slides presented are available for download at our IR website. (Operator Instructions)
Forward-looking statements made during this conference regarding the Porto business prospects are based on the beliefs and assumptions of the company management and on information currently available. Forward-looking statements are no guarantees of performance, they involve risks uncertainties and assumptions as they relate to future events and depend on circumstances that may or may not occur.
The overall economic conditions of the business sectors in which Porto Seguro operates and other operational factors may impact the company's future performance. I would now like to ask Mr. Paulo Kakinoff to begin the presentation.
Hello. I am Paulo Kakinoff, and it is a pleasure to be part of the earnings release for the third quarter, '24. With us we have Celso Damadi and the CEOs of the verticals and the
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