The 20th edition of the IRB+Market Newsletter, a monthly report by the IRB+Intelligence platform, shows that, in April, the insurance sector earned BRL 12.4 billion, an increase of 18.8% compared to the same period in 2021. Five of the six segments recorded had double-digit growth. With a 34.8% increase, Automobile had the best performance, followed by Credit and Guarantee, 23.2%; Corporate Damages and Liabilities, 21.7%; Individual Against Damage, 14.8%; and Life, 11.3%. Rural was the only line that reduced premium issuance in the fourth month of the year: -1.8%, the second consecutive drop in 2022.
The newsletter also shows that, in the first four months of 2022 (4M22), the insurance sector has already accumulated BRL 50.2 billion, an increase of 16.8% compared to the same period in 2021, with BRL 7.2 billion more distributed across all segments. The main highlights were for Automobile and Life, which earned, respectively, BRL 3 billion and BRL 1.7 billion more than in the first four months of 2021.
By segment
In April, Life earned BRL 4.6 billion, an increase of 11.3% compared to the same month in 2021, and increased 11% in the four-month period, totaling BRL 17.6 billion. In the fourth month of the year, losses recorded totaled BRL 1.1 billion, a reduction of 38.5% compared to April last year. When comparing April 2021 with April 2020, there was a 116% increase in losses due to the pandemic. Comparing 4M22 with 4M21, the loss ratio dropped 14.2 p.p., reaching 31.8%.
The Automotive segment recorded, in the fourth month, BRL 3.6 billion (+34.8%), being the best performance in April. In the accumulated, it earned BRL 14.3 billion (+26.4%), BRL 3 billion more than in the previous four-month period. Damages and Liabilities recorded BRL 2.2 billion in April (+21.7%). In the four-month period, it totaled BRL 9.3 billion, an increase of 14.1%. Individuals against Damages, in the fourth month of the year, earned BRL 901 million (+14.8%) and in the accumulated it raised BRL 3.9 billion (+3.6%). The loss ratio, in turn, also increased, being the highest in the historical series in this period: 40.7%, an increase of 9 p.p. compared to the same period in 2021.
Rural had another retraction (-1.8%), the second of the year, and raised R$ 771 million in April. Despite this, in the accumulated of 2022, it had an evolution of 34.8% compared to the first four months of 2021, totaling about BRL 3.4 billion. However, the loss ratio rate still remains high, despite having recorded a decline from 236.4% in 3M22 to 203.2% in 4M22, reaching a total of BRL 7.2 billion in claims incurred, exceeding by BRL 63.3 million the total of claims occurred in 2021.
Finally, Credit and Guarantee obtained, in April, a collection of BRL 410 million (+23.2%, second best result in the insurance sector). In the sum of the year, the segment registered BRL 1.7 billion (+21.8%). The segment’s loss ratio rate in 2022 also stood out, as it fell by 7.3 p.p. and reached 19.2%, the second lowest since the beginning of the historical series, in 2014.
Loss Ratio
In April, the insurance sector’s loss ratio fell by 2.1 percentage points (p.p.) compared to the same month in 2021. The improvement in the loss ratio was driven by the Life (-26.7 p.p.) and Corporate Damages and Liabilities (-19.2 p.p.) segments, which offset the increase in the rate in the other segments. In the year, the index grew 10.7 p.p. compared to the same period in 2021, strongly impacted by Rural (+145.8 p.p.).
The IRB+Market Newsletter summarizes insurance operations based on public data made available by Susep on 06/20, 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+Insurance Market Dashboard allows dynamic and free consultation of information from the entire sector.
