BB Seguridade Participações (BBSE3) Q4 2024 earnings summary

Executive summary

• Net income for 2024 reached BRL 8.7 billion, up 9.5% year-over-year, with managerial profit at BRL 8.2 billion (+5.7%), driven by strong operating results and effective risk mitigation, especially in rural insurance.

• Over BRL 8.3 billion (95%+ payout) returned to shareholders via BRL 7.1 billion in dividends and BRL 1.2 billion in buybacks.

• 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%.

• Over BRL 538 million invested in IT, cybersecurity, and digital solutions, with digital channels accounting for 26% of premium bond sales and 180,000 new digital customers.

Financial highlights

• Loss ratio reached a historical low of 23.7%, reflecting robust underwriting and risk diversification.

• Net investment income declined due to lower Selic rates and negative mark-to-market 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.

• Earnings per share rose to BRL 4.46, with book value per share at BRL 4.85.

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.

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

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