Insurance market earns BRL 14.2 billion in may, an increase of 26.5%

Publicado em: 26/07/2022

Table of content

The 21st edition of the IRB+Market newsletter, a monthly report by the IRB+Intelligence platform, shows that, in May, the insurance sector earned BRL 14.2 billion, an increase of 26.5% compared to the same period in 2021. This was the highest rate for a month of May since the beginning of the historical series in 2014.

Contrary to what happened in April, in May all segments grew double digits in revenue, including Rural, which came from two consecutive months of retractions. In the fifth month of the year, Rural changed positively 27.1% and was only behind Automobile, which registered an increase of 43.3%.

For the year, the insurance market rose 18.8%, totaling BRL 64.4 billion:  BRL 10.2 billion more compared to the same period last year. Automobile was the segment that contributed the most to this result, with an increase of BRL 4.2 billion. Life increased by BRL 2.5 billion.

In May, the loss ratio (claims that occurred over the month’s revenue) increased by 1.4 p.p. compared to the same month in 2021, closing at 52.3%. In the accumulated until May, it grew 8.8 p.p. (58.9%) compared to the rate recorded in the same period last year. The worsening in loss ratio was mainly driven by the Rural segment (73.4% in May). Disregarding this segment in the analysis, the market rate would be at 48.8%, which would represent 0.1 p.p. less in relation to the accumulated until May 2021.

By segment

In May, Life, which accounts for 35.1% of market revenue in the first five months of the year, reached BRL 5 billion, up 17.2% compared to the same month in 2021, and an increase of 12.3% in the sum of the initial five months of 2022, totaling BRL 22.6 billion. The loss ratio, in the year, was 32%, a reduction of 17 percentage points (p.p.) compared to the same period in 2021. The indicators show the impacts of the advance of vaccination in the country.

Highlight, Automobile (28.8% of the market from January to May) registered, in May, revenue of BRL 4.2 billion (+43.3%), the best performance for the second consecutive month. In the accumulated, it earned BRL 18.5 billion (+29.9%).

Damages and Liabilities (18.3% of the market from January to May) earned BRL 2.5 billion in May (+24.6%) and BRL 11.8 billion (+16.1%) in 2022. Insurance against cyber risks, belonging to this segment, had a positive variation of 95%, driven by the implementation of remote work by most companies.

Individuals against Damages (7.7% of the market from January to May) earned, in the fifth month of the year, BRL 1.1 billion (+23.7%). Year-to-date, the segment earned around BRL 5 billion (+7.5%).

Rural, on the other hand, which accounts for 6.8% of the market’s revenue in the first five months of the year, had a 27.1% raise when it collected BRL 942 million in May. In 2022, totaling BRL 4.4 billion, with the highest nominal variation in the sector: 33% from January to May. The good performance is influenced by the amounts allocated by the Federal Government’s subsidy program. Although the accumulated loss ratio has increased by 110.9 p.p. compared to last year, registering 177.2%, in May the first monthly retraction was observed compared to the same month of 2021: 73.4%, down 28.2 p.p.

Finally, Credit and Guarantee (3.3% of the market from January to May) collected, in May, BRL 456 million (+14.3%), mainly as a result of the 28% increase in the Internal Credit product. When analyzing the year, revenue is BRL 2.1 billion (+ 20.1%), with the lowest loss ratio in the sector (18.4%). The IRB+Market Newsletter summarizes insurance operations based on public data made available by Susep on 14/07, 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.

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