Brazilian insurance companies accumulated R$118 billion in revenue this year, an increase of 11%, according to the IRB+Market Bulletin. Loss ratio stands at 44.1% in the sum of the first seven months of 2024
Premium issuance by Brazilian insurers grew 17.9% in July compared to the same period in 2023, totaling R$18.7 billion. The Damages and Liabilities segment, which registered an increase of 33%, showed the greatest variation. The data is part of the IRB+Market Bulletin, released on 10/01 by the IRB+Intelligence platform. The analysis also shows that the sector’s revenue totals R$118 billion in 2024 (7M24), a positive variation of 11.1%. In other words, R$11.8 billion more than that recorded in the first seven months of last year (7M23). Life, which accounts for 35% of the market, issued R$6.6 billion more in premiums. On the other hand, Rural fell by 1.3%.
The loss ratio, an indicator that assesses the operational performance of insurers, was 45.2% in July, an increase of 9.6 percentage points (p.p.) compared to the same month in 2023, mainly due to the 45 p.p. increase in claims occurring in the Corporate Damage and Liability segment. Despite this increase, the third in a row, the accumulated loss ratio in 2024 is 44.1%, remaining practically stable in relation to the same period in 2023, with an increase of 1 p.p.
The IRB+Market Bulletin, which considers the database updated by Susep on 09/23, indicates that the net profit of insurance companies increased by 2.3% in July, compared to the same month last year, totaling R$3.3 billion. The sum for 7M24 reaches R$20.7 billion, a slight increase of 0.4%. When analyzing the transfer to reinsurers, insurers, in turn, contracted the equivalent of R$2.61 billion in reinsurance in July, a positive variation of 26.8%. Year-to-date, the value reached R$16 billion, an increase of 6.8% compared to the accumulated total for 7M23.
Life earns R$6.4 billion in July
Life had a turnover of R$6.4 billion in July, an increase of 27.9% year-on-year, driven by the Collective Loan insurance, which varied positively by 39.8%. The segment grew 19% in 2024 compared to the same period last year. Individual Life insurance (+25.3%) was mainly responsible for this evolution. The loss ratio, accumulated this year, remained stable: 29.2 (-0.7 p.p.).
The Automobile segment issued premiums worth R$5.3 billion in July, an increase of 7.1%. Considering the first seven months of 2024, the claims ratio remained practically stable at 59.7%.
Damages and Liabilities had a turnover of R$3.5 billion in July, making this the segment with the highest monthly variation (+33%). The loss ratio was 52.8% (+13.4 p.p.) in 7M24.
In July, Individual Against Damages recorded R$1.5 billion, a growth of 22%. The Rental Guarantee insurance had the greatest variation among the products in this segment. The loss ratio was 34% (+0.6 p.p.) from January to July.
The Rural segment totaled R$1.5 billion in July, and fell 8.2% compared to the same month in 2023. In relation to the loss ratio, in the year to date, there was an increase of 1.6 p.p. (38.5%).
Credit and Guarantee billed the equivalent of R$585 million in July, a positive variation of 18.3%. In 7M24, the loss ratio fell 46.8 p.p. compared to the same period of the previous year, closing at 19.1%.
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. Visit www.irbre.com.
