Insurance companies’ net income growth was 77.9% in the first ten months of 2023, compared to the same period in 2022, amounting to R$ 30.4 billion. This is shown in the 37th edition of the IRB+Market Bulletin, as released today (12/28) by the IRB+Intelligence platform. A full analysis and the data panel that allows dynamic querying of information are available on the IRB(Re) website.
The rise reflects a 9.8% increase in written premiums and a 9.1 percentage point drop in the loss ratio for the same period. From January to October, turnover – premiums written by insurance companies – totaled R$ 155.6 billion, highlighting the increase of R$ 4.8 billion in the Automotive segment. The loss ratio dropped from 51.2% to 42.1%, the lowest ratio for the first ten months of the year in the historical series starting in 2014.
Considering the information published by Susep, the insurance and reinsurance market regulatory body, on December 18, the IRB+Market Bulletin shows that, among the top ten insurance groups by turnover, the ones with the highest loss ratios were Allianz (63.3%), Liberty (52.7%) and Porto Seguro (51.4%). The lowest ratios were shown by Zurich Santander (17%), Itaú-Unibanco (20.6%) and Caixa (24.6%).
Analysis by segment: Rural segment loss ratio dropped by 73.1 percentage points
Responsible for the highest turnover of the insurance market, the Life segment increased 7.7% from January to October 2023, compared to the same period in 2022, totaling R$ 51.6 billion in written premiums. During this period, the products with the highest variation rates were Loan protection (35.2%) and Life (20.4%) insurance, in the Individual modality, and Travel insurance (20.8%), in the Group modality. The loss ratio dropped 2 pp and closed at 29.9%.
Automotive segment, in the year to date, increased by 11.5%, reaching a R$ 46.3 billion turnover. The segment’s loss ratio dropped from 71.1%, in 10M22, to 58.1%, in 10M23. Regarding Corporate Damage and Liability Insurance, which increased written premiums by 10.9%, compared to 10M22, recorded a slight rise in loss ratio: from 38.2% in 10M22 to 38.9% in 10M23.
Individual Damage Insurance grew 13.6% in 10M23, compared to 10M22. In the same period, the loss ratio dropped 3 pp, and closed at 33.9%. In the Rural segment, despite the shrinkage recorded for three consecutive months, the accumulated result for 10M23 closed with growth of 4% compared to 10M22. The loss ratio dropped by 73.1 pp and reached 34.4%, the lowest value ever recorded for the period since the beginning of the historical series in 2014.
The Credit and Guarantee segment recorded, in October, the first drop in written premiums for the year. In 10M23, the rise, however, amounted to 15.7%, compared to the same period of the previous year, highliting the Insured Guarantee product – Public Sector and Internal Credit, with a variation of 27.2% and 14.3%, respectively. Loss ratio increased by 19.7 pp and reached 54.1% in the year to October.
The IRB+Market Bulletin summarizes insurance operations, considering damage, liability and personal insurance.
