Porto Seguro : Investor News – Market Share Auto 2Q18 and 1H18
September 28, 2018 at 04:32 pm EDT
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Porto Seguro Investors News (58) - Auto Market Share 2Q18 and 1H18
Dear Investors,
Recently, the regulatory agency (Susep) has released Brazilian auto insurance results for June, 2018 and also for the first semester of 2018.
This year, the regulator changed the way of accounting, affecting earned premiums and expenses ratios.
The Initial Hiring Costs, which allowed an acceleration of earned premiums until December/2017, will be accrued as Deferred Acquisition Costs as of 1/1/2018, following the same appropriate system for the results according to the contract risk length (pro rata).
The consequence is a reduction of earned premiums, which led to an increase in loss ratio, other operational expenses and taxes. The exception is the G&A, which decreased mainly due to the offsetting of the equivalent part of the deferral, in order to balance the accounting. The impact in Porto Seguro is an increase of 2 p.p. in the loss ratio and a decrease of approximately 3 p.p. in G&A compared to the former rule.
Below the top player's results:
AUTO - 1H18 x 1H17
Market Share Market Share (Var. p.p.) Premiums Growth
AUTO - 2Q18 vs. 2Q17
Market Share Market Share (Var. p.p.) Premiums Growth
27,4%
0,1 4,5%
12,5%
0,0 4,0%
10,5%
1,8 26,2%
8,0%
0,3 8,8%
7,4%
0,5 12,4%
2,3%
-1,0 -28,1%
100,0%
- 4,1%
Insurer
Loss Ratio
Loss Ratio (Var. p.p.)
Porto Consolidated
27,8%
0,3
6,1%
54,3%
-4,7
Porto Seguro + Itaú Auto¹
19,3%
-0,3
3,2%
53,4%
-3,9
Mapfre + BB
12,5%
-0,1
4,4%
71,9%
2,2
Bradesco Auto/RE
11,1%
-1,2
-5,3%
61,9%
-3,6
Sulamérica
9,5%
0,9
15,8%
61,2%
-8,2
Tokio Marine
9,3%
0,7
14,0%
56,5%
-6,4
Azul Seguros
8,5%
0,6
13,3%
56,5%
-7,0
HDI
8,3%
0,2
6,9%
71,1%
-1,4
Liberty
7,5%
0,7
16,3%
58,2%
-5,6
Allianz
5,1%
0,2
8,2%
65,5%
-3,6
Sompo Seguros
2,4%
-1,1
-29,1%
64,1%
-5,9
Zurich
1,4%
-0,1
-4,7%
70,2%
-4,1
Market
-
-0,1
4,9%
61,5%
-3,9
Insurer
Loss Ratio
Loss Ratio (Var. p.p.)
Porto Consolidated
53,1%
-4,8
Porto Seguro + Itaú
52,1%
-3,9
Mapfre + BB
66,1%
-3,3
Bradesco Auto/RE
60,2%
-5,3
Sulamérica
60,4%
-7,7
Tokio Marine
54,0%
-8,9
Azul Seguros
55,5%
-7,2
HDI
69,4%
-2,5
Liberty
58,3%
-5,4
Allianz
65,2%
-2,9
Sompo Seguros
63,9%
-2,3
Zurich
65,7%
-6,5
Market
59,8%
-4,9
19,4%
-0,3 2,8%
12,0%
-1,1 -4,9%
8,7%
0,2 6,8%
7,7%
0,1 5,0%
4,9%
0,2 8,8%
1,2%
-0,3 -18,0%
¹ The Company started in the fourth quarter of 2016 the plan for migrating the auto polices issues from Itaú Auto e Residência to Porto Seguro Cia Company, which is now operating the brands Porto Seguro and Itaú Auto. The migration is going to be done gradually aiming to improve processes and systems synergy preserving both brands.
Kind Regards,
Relação com Investidores / Investor Relations - Tel.: (+55) 11 - 2393-7092 Porto Seguro -http://www.portoseguro.com.br
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Porto Seguro SA published this content on 28 September 2018 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 28 September 2018 20:31:01 UTC
Porto Seguro SA is a Brazil-based company primarily engaged in the automobile insurance sector. The Company's activities are divided into six business segments: Car insurance, which offers automobile insurance products; Health insurance and plans, which provides health and dental insurance policies and healthcare plans; Life insurance and pension plan, which includes life insurance products and management of pension plans; Other insurance, which provides other non-life insurance policies; Financing, which is involved in the credit transactions, and Other, which mainly includes insurance services provided in Uruguay. In addition, the Company offers a range of services not related to insurance activity, such as electronic protection and surveillance and distribution of automotive parts. The Company is controlled by Porto Seguro Itau-Unibanco Participacoes SA.