BB Seguridade Participações (BBSE3) Q4 2024 earnings summary

Executive summary

• Net income grew 9.5% in 2024, reaching BRL 8.7 billion, with managerial/adjusted net income up 5.7% to BRL 8.2 billion year-over-year.

• Over BRL 8.3 billion returned to shareholders via BRL 7.1 billion in dividends and BRL 1.2 billion in buybacks, exceeding a 95% payout ratio.

• Written premiums totaled BRL 17.5 billion, with strong growth in rural, credit life, and rural lien segments.

• Customer satisfaction improved, with NPS up 4.7 points and complaints down 15.2% year-over-year.

• Significant investments in IT, cybersecurity, and digital solutions, with 180,000 new digital customers and over 915,000 digital sales.

Financial highlights

• Loss ratio reached a historical low of 23.7%, driven by robust underwriting and reinsurance strategies.

• Investment income dropped 17% for the year and 13% in Q4 year-over-year, mainly due to Selic rate reduction and IGP-M inflation impacts.

• Pension reserves expanded 9.4% to BRL 428.9 billion; premium bond collections grew 4.2% to BRL 6.7 billion.

• Brokerage revenues increased 10% year-over-year, supported by both new and recurring business.

• Adjusted net income for 2024 was BRL 8.2 billion, up 5.7% year-over-year.

Outlook and guidance

• 2025 guidance: non-interest operating result expected to grow 3–12%, written premiums 2–7%, and pension plan reserves 7–16%.

• Loss ratio for crop insurance expected to rise from 2024's historical low but remain between 2023 and 2024 levels; overall loss ratio to increase marginally.

• Net inflow for pension reserves expected to improve in 2025, with positive net inflow anticipated barring adverse scenarios.

• Methodology change for 2025: PCC variation to be reclassified as a financial expense.

• Selic rate assumptions for 2025 are 14–15%, with IGP-M and IPCA between 4–5.5%.