The net profit of insurance companies dropped 13.7% in April, compared to the same period last year, totaling R$2.6 billion. This is shown in the 42nd edition of the IRB+Mercado Report, as released today (July 11th) by the IRB+Inteligência platform. In the year to date, however, the figures show growth of 5.1% compared to a year earlier, reaching R$11.5 billion. The analysis takes into account the database updated by Susep, the industry regulator, on July 1st.
According to the IRB+Mercado Report, which covers damage, liability and personal insurance, insurers collected R$16.4 billion in April, up 20.3% on the same month in 2023. From January to April, the total turnover, i.e. premiums issued, reached R$64.6 billion, an increase of 12.1%.
The loss ratio decreased by 4.1 percentage points (p.p.) in April, year-on-year, to 38.9%. In the year to date, the drop reached 6.5 p.p., closing at 39.5%. It is worth noting that the impacts caused by the floods in Rio Grande do Sul will be verified in the numbers reported by the market to Susep in the coming months.
Brazil’s insurers contracted almost R$1.9 billion in reinsurance in April, an increase of 7.5% compared to the fourth month of last year. From January to April, reinsurance transfers totaled R$8.1 billion, a positive variation of 6.2%.
The Individual Against Damage segment registered the highest increase in April
Accounting for the largest share of the insurance sector, Life, which has a 35.8% share, issued premiums of R$6 billion in April, up 29.5% compared to the same month in 2023. The loss ratio for the month closed at 31.6%, up 3.6 p.p.. The Automobile segment, in turn, earned R$4.6 billion in the fourth month of the year, an increase of 12.5%. The loss ratio for the period stood at 59.3%, an increase of 3.9 p.p..
Damages and Liabilities ended April with R$3 billion in revenues, an increase of 15.9%. The loss ratio, however, stood at 31.1% (-11.6 p.p.), the lowest since 2014. Individual Against Damages registered the greatest variation in April, advancing 30.9%, with a revenue of R$1.3 billion. Comprehensive Home insurance contributed to the rise, in addition to other products that recorded a large positive variation, such as Tenancy Insurance (47.1%) and Comprehensive Homeowners Insurance (44.2%). The segment’s loss ratio closed April at 32.1%, an increase of 2.6 p.p..
The Rural segment issued a total of R$1 billion in premiums in the fourth month, an increase of 25.6% compared to the same period last year. The loss ratio was 38.8%, the lowest for the period since 2014. Lastly, Credit and Collateral had revenues of R$480 million in April, down 7.7%, mainly due to the Credit business line (-58.5%). The loss ratio closed by 17% in April.
The IRB+Mercado Report, available in full here on the IRB(Re) website, summarizes insurance operations. The IRB+Mercado Segurador Dashboard, which allows dynamic and free consultation of information from the entire sector, is also online.
