Porto Seguro (PSSA3) Q4 2024 earnings summary

Executive summary

• Total revenue reached BRL 10 billion in Q4 2024, up 14% year-over-year; full-year revenue was BRL 37 billion, up 13% versus 2023.

• Recurring net income for Q4 was BRL 710 million (+3% YoY); full-year recurring net income was BRL 2.7 billion, up 18% year-over-year.

• ROAE was 21.5% for Q4 and 20.3% for the year, with all business units above 20%.

• Client base reached a record 18 million, with 30 million in the broader ecosystem.

• Strong performance across insurance, health, banking, and services verticals.

Financial highlights

• Insurance revenue grew 4% to BRL 5.6 billion in Q4; Porto Saúde revenue up 34.7% to BRL 1.9 billion; Porto Bank revenue up 21% YoY.

• Porto Serviços posted BRL 640 million in Q4 revenue and BRL 103 million in EBITDA (16.1% margin).

• Productivity gains since 2020 led to annual cost savings of BRL 3 billion; 2024 saw a further BRL 115 million reduction.

• Financial investment portfolio revenue was BRL 346.6 million in Q4, representing 90.4% of CDI.

• Non-recurring losses of BRL 100 million in 2024 from discontinued Mobitech and Texas operations will not recur in 2025.

Outlook and guidance

• Robust growth expected across all business units in 2025, with Porto Bank targeting 14–22% growth and health 25–40%.

• Porto Seguro premium growth guidance of 2–5%, loss ratio 51–55%, G&A ratio 10.3–11.2%.

• Dividend payout ratio to increase from 45% in 2024 to a potential 50% in 2025, reflecting surplus capital.

• No need for additional funding to sustain high growth rates; capital allocation to remain efficient and stable.

• Porto Serviço targets revenue of BRL 2.5–2.8 billion and G&A ratio of 8–9%.