Insurers across Brazil contracted R$6.2 billion in reinsurance in the first three months of 2024. The amount is 5.9% higher than that recorded in the first quarter of last year. This is shown in the 41st edition of the IRB+Mercado Report, as released today (June 11th) by the IRB+Inteligência platform.
Considered positive by the market, the increase in reinsurance contracting has not yet kept up with the pace of growth in revenue from the insurance sector, which reached R$48.2 billion in the sum of January, February and March, 9.6% higher than that recorded in the same period in 2023. The quarterly highlight was Credit and Guarantee, which achieved the biggest increase among the segments, an increase of 16.8% in 1Q24 compared to a year before.
In relation to losses incurred, the accumulated total was R$17.5 billion in this first quarter. The loss ratio closed at 39.7%, 7.3 percentage points (p.p.) below the rate recorded in the first three months of last year. The recovery was boosted chiefly by the Corporate Damages and Liabilities segment (-13.7 p.p.).
It is worth noting that the impacts caused by the floods in Rio Grande do Sul will be verified in the numbers reported by the market to Susep in the coming months. Focusing on insurance operations, considering damage, liability and personal insurance, the IRB+Mercado Report considers the basis published on May 20th.
The Life segment expands its participation
The largest segment of the insurance market, Life, increased its share by 2.1 p.p., reaching 35.6% of premiums issued. In 1Q24, the segment earned R$17.1 billion, an increase of 16.5% compared to 1Q23. Highlights include the Individual Life (+29.2%) and Collective Life (+3.5%) products. The segment’s loss ratio fell 2 p.p. in 1Q24 and closed at 27.7%.
The Automobile segment issued R$13.3 billion in premiums in the first three months of the year, remaining stable in relation to 1Q23. The loss ratio in 1Q24 fell 4.6 p.p. and registered 57.2%. Damages and Liabilities, in turn, ended the first quarter with R$8.8 billion in revenue, an increase of 10.8% compared to 1Q23. The loss ratio reduced 13.7 p.p. in 1Q24, registering 30.6%, the lowest since the beginning of the historical series in 2014.
Individual Against Damage Insurance recorded revenue of R$4 billion in 1Q24, a positive variation of 16.1% compared to a year before, mainly due to Comprehensive Homeowners Insurance, which grew 26.3% and recorded the largest variation since the beginning of the historical series. The loss ratio in 1Q24 was 36.3%, a decrease of 4.5 p.p.
The Rural segment issued R$3.3 billion in premiums in 1Q24, an increase of 5.6% compared to 1Q23. The loss ratio fell 10.1 p.p., reaching 45.9%. Finally, Credit and Guarantee issued premiums worth R$1.7 billion in 1Q24, growth of 16.8%. The loss ratio was 28.9% in 1Q24, a decrease of 39.9 p.p.
The IRB+Mercado Report, available in full here on the IRB(Re) website, summarizes insurance operations. As for the IRB+Mercado Segurador Dashboard, it allows dynamic and free consultation of information from the entire segment.
