Caixa Seguridade Participações (CXSE3) Q2 2025 earnings summary

Executive summary

• Celebrated 10th anniversary with institutional campaigns, cashback, prize draws, and product promotions, reinforcing market leadership and customer focus.

• Achieved record performance in housing and home insurance, driven by CAIXA's housing loan growth and innovative sales strategies.

• Net income reached BRL 1,028.4 million in 2Q25, up 57.3% year-over-year; YTD net income was BRL 2,078.8 million, a 37.7% increase over 1H24.

• Launched new products and digital sales journeys, enhancing operational efficiency and customer experience.

• All investees posted positive results, with strong contributions from Caixa Vida e Previdência, Caixa Residencial, Caixa Consórcio, Caixa Capitalização, and Caixa Assistência.

Financial highlights

• Managerial net income reached BRL 1.42 billion in Q2 2025, up over 35% year-over-year.

• Operating revenue was BRL 1.4 billion, a 28% increase year-over-year; first-half operating revenue up nearly 19%.

• Accounting net income (IFRS 17) was BRL 1,028.4 million in 2Q25, up 57.3% from 2Q24.

• Written premiums totaled BRL 2,382 million in 2Q25, with notable growth in Mortgage (+12%), Home (+22%), and Assistance (+62%) segments.

• Private pension reserves grew 13.4% to BRL 184.7 billion; credit letters inventory up 61.6% to BRL 6.7 billion.

Outlook and guidance

• Expectation of robust growth in credit letters and premium bonds, supported by high interest rates and product strategy.

• Ongoing digitalization and streamlined sales journeys, especially for private pension portability and credit letters.

• Focus on efficiency and cost control, with administrative expense ratio (IDA) improving by 0.3 p.p. year-over-year.

• Private pension growth to be impacted by IOF tax changes, with an estimated 15-25% effect on gross funding.

• Management is assessing the impacts of regulatory changes and tax reform, with full implementation of tax reform expected by 2033.