The third quarter recorded the highest quarterly growth of the year in revenue, with an increase of 10.8%. Life insurance accounted for almost 60% of this result, according to the IRB+Market Bulletin of the IRB+Intelligence platform
The country’s insurance companies closed September with revenues of R$17.7 billion, a positive year-on-year change of 11.8%. The result pointed out by the 47th edition of the IRB+Market Bulletin of the IRB+Intelligence platform, released today (12/2), also shows that there was continuous quarterly growth in the issuance of premiums, with the highest between July and September of 10.8%. Life insurance accounted for almost 60% of this result. In the year to date, revenue was R$153.8 billion, an increase of R$14.2 billion, compared to the first nine months of 2023 (9M23), with emphasis also on the Life segment, which had revenue of R$8.3 billion more.
The analysis of the IRB+Market Bulletin, which considers the data published by Susep, the sector’s regulatory body, on November 11, indicates that the performance of insurers resulted in net income of R$3.3 billion in September, an increase of 11.2%, but a decrease of 1.2% in 9M24, totaling about R$27.1 billion. The purchase of reinsurance in order to mitigate risks and protect its operations was R$1.76 billion in September (-1.8%) and R$19.8 billion in the year as a whole, up 3.3%.
The loss ratio, an indicator that evaluates the operating performance of insurers, was 39.8% in the ninth month and 43.3% in the annual sum, with a slight increase of 0.8 percentage points (p.p.) and 0.9 p.p. respectively. When analyzing the third quarter of 2024 (3Q24), the loss ratio increased by 3.6 p.p. mainly due to the progress of claims that occurred in the Corporate Damage and Liability segment (19.5 p.p.).
Life has the best revenue performance in 3Q24
The Life segment closed 3Q24 with an increase in revenues of 19.5%, being the best in the last quarter, compared to 3Q23, mainly due to the Lender insurance, in the Collective modality, responsible for 35.6% of the increase. Travel insurance, in individual contracting, grew 58% between July and September, also motivated by the higher number of passengers on international flights (+14.4%) according to data from Anac. In the year to date, the issuance of Life premiums grew 18.2% compared to 9M23 and the loss ratio remained stable with a slight decrease of 1 p.p.: 29.2%
The Automotive segment ended 3Q24 with year-on-year growth of 4.2% in revenue, this being the first quarter without monthly retractions. Responsible for 27.7% of the insurance market’s premium issuance in 9M24, Auto increased 2.1% compared to the same period in 2023. Claims increased by 1.1 p.p., from 58.4% in 9M23 to 59.5% in 9M24.
Damages and Liabilities had a positive variation in revenues of 16.5% in 3Q24, mainly driven by the Miscellaneous Risks business line, which includes insurance for cell phones, works of art, jewelry, agricultural and forestry equipment, as well as protection for events and filming, and against theft. In the year to September, the advance was 12.7% compared to 9M23, with emphasis on the Equity line, which accounted for 25% of this growth due to the evolution in the Named and Operational Risks product. Another product that stood out was Satellites, from the Space Risks line, which rose 162.9%. The loss ratio was 50.8% discharge, a decrease of 11.9 p.p.
Individual damage revenues increased by 13.6% in 3Q24 compared to 3Q23. In the total year, up to September, the variation was 16.3% compared to the same period in 2023. The main contributor to this advance, Comprehensive Home insurance registered a 44% share. Other important fluctuations in the accumulated were Condominium insurance and Lease Bonds, which grew 29% and 27.2%, respectively. The FipeZap Index, which tracks the rental prices of residential and commercial properties, indicated that Residential Lease rose 10.9% and Commercial Lease rose, on average, 6.33%. In 9M24, the loss ratio reached 32.4%, a negative change of 0.9 p.p., which points to stability.
For the second consecutive quarter, Rural recorded a year-on-year drop in 3Q24 revenues of 5.9%. In the year to date, there was also a reduction in premium issuance of 2.3% compared to 9M23. The loss ratio in 9M24 was 34.3%, the lowest in the time series.
Finally, Credit & Guarantee had a stable increase of 1% in revenues in 3Q24 compared to 3Q23 due to the 4.4% increase in the Guarantee business line and the 7% decrease in Credit. In 9M24, there was a 6.8% growth in the issuance of premiums in the segment driven by the Insured Guarantee – Public Sector products, which advanced 9.2%, and Insured Guarantee – Private Sector: up 50.6%. Regarding the loss ratio, the segment recorded 24.5% in 9M24, a decrease of 31.7 p.p., the second lowest since the beginning of the time series.
The IRB+Market Bulletin, available in full on the IRB(Re) website, summarizes insurance operations. The IRB+Market Insurer Dashboard, which allows dynamic and free consultation of information, is also online. Go to www.irbre.com.
