IRB+Market Report, released on 03/19, shows that the sector’s net profit decreased 4.1% in 2024, pressured by the increase in claims and acquisition costs
Brazilian insurers closed 2024 with record revenues of BRL 207.6 billion, an increase of 10.2% compared to 2023. This is what the 50th edition of the IRB+Market Report, published on 03/19 by the IRB+Intelligence platform, shows. The business lines that contributed most to growth were Life and Property, responsible for 67% of the increase.
The analysis, which considers the database updated by Susep on 03/10, reveals, however, a 4.1% drop in net profit recorded by the sector: from BRL 37.4 billion in 2023 to BRL 35.9 billion last year. The decrease was mainly caused by the increase in the total amount spent on paying claims and acquisition costs.
Despite paying more claims in 2024 (R$76.3 billion) than in the previous year (R$70.6 billion), the sector’s loss ratio, an indicator that assesses the operational performance of insurers, remained stable at 41.5%. The result confirms the market’s resilience and capacity in the face of catastrophes, such as the floods in Rio Grande do Sul – which increased claims, mainly in the Property and Housing lines – and the Voepass aircraft accident, the deadliest in Brazil since 2007.
Premium ceded in reinsurance on the rise
In 2024, insurers transferred BRL 26.3 billion in premiums to reinsurance, an increase of 4.4% compared to 2023, driven by higher cessions in the Property (14.1%) and Surety (20.8%) lines. The Rural segment, on the other hand, reduced cession by 18.1% compared to a year earlier. Of the total premiums ceded in reinsurance, 54.5% were directed to local reinsurers.
The Life segment accounts for 35.1% of the market
The Life segment, responsible for 35.1% of the sector’s revenue in 2024, increased 15.8% in premium issuance compared to 2023. Result attributed to the good performance of Life, Lender and Personal Accident products – which together account for 88% of the portfolio. The annual loss ratio was 28.3%, a decrease of 1.3 percentage points (p.p.).
Automobiles, responsible for 27.8% of the market, closed 2024 with growth of 3.1% compared to 2023, the lowest annual variation since 2021. Performance was influenced by the rise in insurance prices in 2023, when new and used vehicles appreciated in value, post-pandemic. The loss ratio in 2024 was 59.4%, an increase of 1.4 p.p.
Housing Insurance grew 11.2%
Damages and Liabilities (18.7% of the market) increased by 13% in 2024 compared to the same period in 2023. The segment grew influenced by the increase in Named and Operational Risks (+17.5%) and Miscellaneous Risks (+23.4%), which include insurance for cell phones, works of art, jewelry and agricultural equipment. Home insurance grew 11.2%, driven by the increase in sales in the real estate market (+20.9%) due to the increase in sales of the Minha Casa Minha Vida Program (+43.3%). The increase in loss ratio in 2024 was 8.1 p.p., closing at 45.2%.
Individual Damage Insurance (8.2% of the market) grew 14.8% influenced by Rental Guarantee (+24.4%), Extended Warranty (+10.9%) and Comprehensive Business (+10.8%) insurance. Comprehensive Residential (+16.5%) has contributed to the segment’s growth since 2020, when demand increased with the pandemic and the adoption of home office. In 2023, there was stability, but last year, there was a new expansion due to the increasingly intense and common windstorms and storms in Brazil. The loss ratio in 2024 was 31.7%, a reduction of 3.7 p.p.
Rural Insurance covers only 7.7% of the planted area
Rural (6.8% of the market) varied positively by 1.3% in 2024 in the year-on-year analysis. The segment has support from the Federal Government through the Rural Insurance Premium Subsidy Program, which offers farmers the opportunity to insure their production at a reduced cost. In the second half of 2024, the initiative reached BRL 1.1 billion in subsidies. As a result, more than 138 thousand policies were contracted, preventing 7.26 million hectares. However, it is worth highlighting that only 7.7% of the area planted in the country is insured. The loss ratio closed at 30.4%, the lowest recorded since the historical series began in 2014.
Credit and Surety (3.4% of the market) grew by 10.3% last year. The product that most influenced the result was Insured Surety, with +35.3% in the private sector and +14.7% in the public sector. The loss ratio closed 2024 at 25.7%, a negative variation of 21.5 p.p. The drop was attributed, above all, to the lower incidence of claims in Domestic Credit insurance.
The IRB+Market Report summarizes the insurance operations of damages, liabilities and persons. In this edition, the analyses also have an English version. The IRB+Insurance Market Dashboard, which allows dynamic and free consultation of all information, is also online. Go to the www.irbre.com website for more information.
