Porto Seguro SA (BSP:PSSA3) Q2 2025 Earnings Call Highlights: Record Revenue and Robust Growth

Release Date: August 13, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Porto Seguro SA (BSP:PSSA3, Financial) reported a 12% increase in total revenue for Q2 2025, reaching a record high of 10 billion.
• Net income grew by 50% compared to Q2 2024, amounting to 878 million, with an ROAE of 24.6%, up 6.2 percentage points.
• The company added 357,000 new members in its health and dental insurance segments, contributing to a reduction in the loss ratio by 2.1 percentage points.
• Porto Bank experienced a significant revenue and net income growth of around 30% for the quarter.
• Operational margins improved by 25% in the first half of the year, driven by a reduction in claims, loss ratio, and administrative expenses.

Negative Points

• Porto Serviso's revenue declined by 1.8% due to a decrease in service demand from Porto Seguro, although this was seen as a positive development.
• The margin for Porto Serviso decreased by 0.7 percentage points compared to Q2 2024.
• There was a noted increase in the NPL ratio for Porto Bank, attributed to the accrual of interest rates from 60 to 90 days.
• The insurance segment's growth was slightly lower at 4.7%, reaching 5.4 billion, compared to other business verticals.
• Despite the overall positive performance, the company maintained a conservative financial guidance, anticipating potential challenges in the second half of the year.

Q & A Highlights

Q: What should we expect from Porto Seguro's growth in 2026? Can it sustain double-digit growth in income?
A: Paulo Kakinoff, CEO, explained that Porto Seguro's growth is sustained by disciplined pricing and technology, extracting historical levels of ROAE. The company aims to maintain growth around one digit, leveraging its strong brand, client base, and product strength. Growth will also come from segments where Porto Seguro has a smaller market share, such as healthcare and new products, which are being pushed by their extensive broker network.

Q: Can you explain the NPL growth in Porto Bank and the impact of the IOF tax on pensions?
A: Paulo Kakinoff, CEO, stated that the NPL growth is primarily due to stop accrual, which affected the first quarter. Without this effect, the NPL would be around 6-6.3%. The IOF tax on pensions did not significantly impact Porto Bank, as processes were adjusted accordingly.

Q: What is driving the strength of NII and profitability in Porto Bank?
A: Paulo Kakinoff, CEO, highlighted efforts in product mix focusing on profitability, particularly in loans for known clients within their ecosystem. Car equity loans have been a significant growth area, and adjustments in credit card pricing have also contributed to profitability.

Q: How will the deceleration in vehicle credit affect Porto Seguro's premiums and growth in 2026?
A: Paulo Kakinoff, CEO, noted that historically, issues with fleet age have not significantly impacted Porto Seguro. The company expects to maintain its current position without a relevant impact on premiums. Growth in auto consortiums is expected to offset any potential declines in direct financing.

Q: Can you provide insights into the integration of Azul Seguros and its impact on efficiency?
A: Paulo Kakinoff, CEO, mentioned that the integration will conclude in August, leading to efficiency gains through system unification. This will result in reduced administrative expenses and improved NPS scores. Celso Damadi, EVP, added that the integration allows for better resource allocation and tax benefits.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.