Insurance companies end 2022 with a high turnover and fall in loss ratio

Publicado em: 10/03/2023

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The insurance sector ended 2022 with a positive variation in revenue of 21.2% compared to 2021, which represents R$ 30.2 billion more in premiums issued, totaling R$ 172.1 billion. This is shown by the 28th edition of Boletim IRB+Mercado’s, the monthly report of the IRB+Inteligência platform released today (Feb/28). The segments that stood out the most were Rural and Auto, both with positive variations of 39.9% and 33.3%, respectively, in comparison with 2021. In December, the turnover increased 15.7%, compared to the same month in the previous year.

The sector’s overall loss ratio ended the year down. The 49.3% ratio is 1.8 percentage point (p.p.) lower than that recorded in the same period of 2021. The recovery was boosted chiefly by Life (-13.7 p.p.) and Corporate Damage and Liability (-7.4 p.p.) segments. Among the top ten insurance groups by turnover, the ones with the highest loss ratios in 2022 were Allianz (79.3%), Liberty (60.2%) and Porto Seguro (58.3%). The lowest ratios were shown by Zurich Santander (18.5%), Itaú-Unibanco (22.4%) and Caixa (27.5%).

Despite the net profit of the insurance sector having fallen 7.9% in December of last year, the Boletim IRB+Mercado report, which considers the public data released by Susep on 02/20, points out that the net profit of insurance companies is 88.1% higher in the year-to-date 2022 than in 2021: R$ 22.3 billion

By segment, Life represented 33.7% (R$ 58.1 billion) of premiums written last year, a rise of 13.2%, mainly due to Life, Loan Protection and Travel products, which represent 77% of the portfolio. The rise in Travel insurance reached 157.4% in 2022 compared to 2021. Impacted by covid-19 in recent years, the segment’s loss ratio fell by 13.7 p.p., reaching 31.1% in 2022.

The Auto segment, which accounts for 29.8% of the sector’s revenue (R$ 51.2 billion), ended the year with an increase of 33.3% compared to 2021, influenced by the increase in vehicle prices. The same factor impacted the loss ratio, which, in the year-to-date result, stood at 69.5%, the highest ratio ever recorded since 2014, the beginning of the historical series.

Still in 2022, the Corporate Damage and Liability segment represented 17.9% (R$ 30.7 billion), followed by Rural, 7.8% (R$ 13.5 billion); Personal Injury Liability, 7.6% (R$ 13.1 billion); and Credit and Guarantee, 3.2% (R$ 5.5 billion) segments. The Rural line loss ratio, which is still in evidence due to the impact of atypical weather events, closed on the rise despite the downturn observed since May last year: a ratio of 92.2% in 2022, 6.1 p.p. above that recorded in 2021.

The Boletim IRB+Market report summarizes insurance operations based on public data made available by Susep, considering damage, liability and personal insurance. The edition also lists the top five insurance groups by line of business. The analysis is available, in full, on the IRB Brasil RE website. On the same website, the IRB+Mercado Segurador Dashboard allows dynamic and free consultation of information from the entire sector.

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