Porto Seguro (PSSA3) Q1 2025 earnings summary

Executive summary

• Achieved record net income of R$832.3M in 1Q25, up 27.8% year-over-year, with total revenue of R$10B, a 15% increase, driven by diversified growth across all business verticals.

• Consolidated ROAE reached 23.9% (+3.0 p.p. YoY), with all verticals exceeding 22% ROAE; client base grew to 18.1M (+6.4% YoY), and Porto App users reached 4.0M (+20% YoY).

• Each vertical contributed to income: Insurance (42%), Bank (26%), Health (24%), and Services (7%), reflecting successful diversification.

• NPS reached a record 88 points, with 32 million transactions and a high broker NPS.

Financial highlights

• Insurance revenue grew 6.1% YoY to R$5.4B; Health revenue surged 35.2% to R$2.0B; Bank revenue up 29% YoY; Services revenue up 9.4% YoY.

• Porto Serviço EBITDA rose 19% to R$113M, with margin at 16.9%.

• Financial result was R$382.6M (+68.4% YoY); investment portfolio reached R$21.1B.

• Operating efficiency ratio improved to 10.9% (-0.5 p.p. YoY); effective income tax rate decreased to 31.8%.

• Cash and cash equivalents at R$2.03B (Mar 2025); net cash from operations R$1.31B in 1Q25.

Outlook and guidance

• 2025 guidance unchanged: Insurance earned premium growth +2% to +5%, Health +25% to +40%, Bank revenue +14% to +22%, Services revenue R$2.5–2.8B.

• Projected loss ratios: Insurance 51–55%, Health 75–80%; efficiency and G&A ratios expected to remain stable.

• Management views current guidance as conservative, with potential to reach the upper bound if positive trends persist.

• ROAE expected to remain above 20% as business diversification stabilizes results.