BB Seguridade Participações (BBSE3) Q3 2024 earnings summary

Executive summary

• Net income for the first nine months reached R$6.42 billion, up 9.7% year-over-year, with managerial net income at R$6 billion, a 5.7% increase and a record high.

• 3Q24 net income was R$2.25 billion, up 6% year-over-year, driven by improved insurance margins and higher brokerage revenues.

• Customer experience improved, with NPS up and complaints down 9% year-over-year; churn improved by 15.2%.

• Investments in digital transformation totaled R$368 million in nine months.

• Dividend payments in 2024 included R$2.49 billion in February and R$2.7 billion in August, maintaining a robust payout policy.

Financial highlights

• Insurance premiums written totaled R$13.2 billion (up 1% YoY), with retained premiums at R$11.4 billion (up 8% YoY).

• Pension reserves increased 11% year-over-year to R$422.5 billion, with net inflows of R$7.9 billion.

• Premium bond collections totaled R$4.9 billion (up 4% YoY); brokerage revenues were R$4.1 billion (up 11% YoY).

• Net investment income for 3Q24 was R$171 million, down from R$182 million in 3Q23, mainly due to lower average balances.

• Total assets as of September 30, 2024, were R$19.2 billion, with shareholders' equity at R$12.3 billion.

Outlook and guidance

• Premiums written guidance revised from 8%-13% to 0%-3% growth for the year due to rural/agriculture segment performance.

• Non-interest operating result expected to end the year near 12% growth; observed 9M24 was 11.7%.

• Pension plan reserves growth guidance maintained at 12%; observed 9M24 was 12.1%.

• For 2025, expectations are for stable or slightly improved loss ratios and continued bottom-line growth, with less volatility in financial results.