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IRB Brasil Resseguros S A : Insurers collect BRL 207.6 billion in 2024, but net profit decreases
IRB Brasil Resseguros S A : Insurers collect BRL 207.6 billion in 2024, but net profit
About this update from Irb Brasil Resseguros Sa
[{"type":"text","content":"\n IRB+Market Report, released on 03/19, shows that the sector's net profit decreased 4.1% in 2024, pressured by the increase in claims and acquisition costs\n Brazilian insurers closed 2024 with record revenues of BRL 207.6 billion, an increase of 10.2% compared to 2023. This is what the 50th edition of the IRB+Market Report, published on 03/19 by the IRB+Intelligence platform, shows. The business lines that contributed most to growth were Life and Property, responsible for 67% of the increase.\n \n \n The analysis, which considers the database updated by Susep on 03/10, reveals, however, a 4.1% drop in net profit recorded by the sector: from BRL 37.4 billion in 2023 to BRL 35.9 billion last year. The decrease was mainly caused by the increase in the total amount spent on paying claims and acquisition costs.\n \n \n Despite paying more claims in 2024 (R$76.3 billion) than in the previous year (R$70.6 billion), the sector's loss ratio, an indicator that assesses the operational performance of insurers, remained stable at 41.5%. The result confirms the market's resilience and capacity in the face of catastrophes, such as the floods in Rio Grande do Sul - which increased claims, mainly in the Property and Housing lines - and the Voepass aircraft accident, the deadliest in Brazil since 2007.\n Premium ceded in reinsurance on the rise\n In 2024, insurers transferred BRL 26.3 billion in premiums to reinsurance, an increase of 4.4% compared to 2023, driven by higher cessions in the Property (14.1%) and Surety (20.8%) lines. The Rural segment, on the other hand, reduced cession by 18.1% compared to a year earlier. Of the total premiums ceded in reinsurance, 54.5% were directed to local reinsurers.\n The Life segment accounts for 35.1% of the market\n The Life segment, responsible for 35.1% of the sector's revenue in 2024, increased 15.8% in premium issuance compared to 2023. Result attributed to the good performance of Life, Lender and Personal Accident products - which together account for 88% of the portfolio. The annual loss ratio was 28.3%, a decrease of 1.3 percentage points (p.p.).\n Automobiles, responsible for 27.8% of the market, closed 2024 with growth of 3.1% compared to 2023, the lowest annual variation since 2021. Performance was influenced by the rise in insurance prices in 2023, when new and used vehicles appreciated in ...