Porto Seguro (PSSA3) Q1 2025 earnings summary

Executive summary

• Achieved record net income of R$832.3 million in 1Q25, up 28% year-over-year, with total revenue reaching R$10 billion, a 15% increase, driven by diversified growth across all business verticals.

• Consolidated ROAE reached 24%, up 3 percentage points from 1Q24, with all verticals exceeding 22% ROAE.

• Client base expanded to 18.1 million, with 32 million transactions and a record NPS of 88 points.

• Each business vertical contributed to income: Insurance (42%), Bank (26%), Health (24%), and Services (7%), reflecting successful diversification.

• Diversification strategy reduced insurance's share of income from 57% to 42%, with increased contributions from health, banking, and services.

Financial highlights

• Insurance revenue grew 6.1% year-over-year to R$5.4 billion; Health revenue surged 35.2% to R$2.0 billion; Bank revenue increased 29%; Services revenue up 9.4%.

• Porto Serviço EBITDA reached R$113 million, up 19%, with margin at 16.9%.

• Financial investment portfolio revenue was R$432.7 million, representing 99.4% of CDI.

• Cash generation improved, starting 2025 with nearly R$2 billion more than 2024, boosting financial revenue.

• Operating efficiency ratio improved to 10.9% (-0.5 p.p. YoY).

Outlook and guidance

• 2025 guidance unchanged: Insurance premium growth of 2–5%, Health 25–40%, Bank revenue 14–22%, Services revenue R$2.5–2.8 billion.

• Projected loss ratios: Insurance 51–55%, Health 75–80%; efficiency and G&A ratios expected to remain stable.

• Management views current guidance as conservative, with potential to reach the upper bound if positive trends persist.

• ROAE expected to remain above 20% as business diversification stabilizes results.

• Projections are subject to external factors and may differ from actual results.