Porto Seguro (PSSA3) Q4 2024 earnings summary

Executive summary

• Total revenue reached R$10 billion in Q4 2024, up 14% year-over-year; full-year revenue was R$37 billion, up 13% from 2023.

• Recurring net income for Q4 was R$710 million (+3% YoY); full-year recurring net income was R$2.7 billion (+18% YoY), with ROAE above 20% across all business units.

• Client base reached a record 18 million, with 30 million in the broader ecosystem, supporting cross-selling and vertical growth.

• The company maintained a strong brand presence, recognized for the 11th consecutive year as the most remembered insurer.

Financial highlights

• Insurance revenue grew 4% to R$5.6 billion in Q4; Porto Saúde revenue grew 37.4% to R$1.86 billion; Porto Bank revenue up 21.1% YoY.

• Porto Serviço posted R$641 million in Q4 revenue and R$103 million in EBITDA (16.1% margin).

• Productivity gains since 2020 led to annual cost savings of R$3 billion; 2024 saw a further R$115 million reduction.

• Financial investment portfolio revenue was R$346.6 million in Q4 2024, representing 90.4% of CDI.

• Investment portfolio reached R$20.3 billion at year-end 2024.

Outlook and guidance

• 2025 guidance: Porto Seguro premium growth of 2–5%, loss ratio 51–55%, G&A ratio 10.3–11.2%.

• Porto Saúde expects 25–40% premium growth, loss ratio 75–80%, G&A ratio 4.5–5.5%.

• Porto Bank projects 14–22% revenue growth, credit losses R$1.9–2.3 billion, efficiency ratio 32.5–35%.

• Porto Serviço targets revenue of R$2.5–2.8 billion and G&A ratio of 8–9%.

• Dividend payout ratio to increase from 45% in 2024 to a potential 50% in 2025, reflecting surplus capital.