Porto Seguro SA (BSP:PSSA3) Q3 2025 Earnings Call Highlights: Strong Revenue Growth and ...

Release Date: November 11, 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 total revenue of BRL10.5 billion, marking an 11% increase compared to the third quarter of 2024.
• The company achieved a net income above BRL800 million for the third consecutive quarter, with a 13% increase and an ROAE of 23%.
• Porto Bank experienced significant growth, with revenue increasing by 28.7% and net income rising by 19%.
• The company maintained a healthy loss ratio, with a slight increase of only 0.8 percentage points compared to the previous year.
• Porto Seguro SA (BSP:PSSA3) has a strong liquidity margin, with BRL4 billion in capital sufficiency, allowing for future growth across its business verticals.

Negative Points

• Porto Serviço experienced a reduction in EBITDA due to lower claims, impacting its revenue generation.
• The average ticket for auto insurance decreased, influenced by a mix effect and competitive pressures.
• There was a reduction in revenue for Porto Serviço due to lower demand and fewer services utilized.
• The company faces challenges in maintaining profitability in the auto insurance segment due to increased competition.
• The health insurance segment saw an increase in the cost of sales, attributed to accounting effects and amortization of mobilization costs.

Q & A Highlights

Q: How is Porto Seguro considering additional dividend payouts given the excess capital and upcoming tax reforms?
A: Celso Damadi, Executive Vice President - Financial, Controllership and Investments, stated that while they are monitoring the tax reform situation, no decisions have been made yet. The company aims to maintain a payout of about 50% in dividends this year. Future discussions on additional dividends will depend on cash generation and growth across verticals.

Q: Can you provide insights into the competition in the Auto segment and its impact on average ticket prices?
A: Jose Rivaldo Leite da Silva, Executive Vice President - Insurance, noted that while competition has been strong, Porto Seguro focuses on efficiency and maintaining high NPS scores. The company has adapted its structure and brand positioning, particularly in the motorcycle segment, to preserve high ROAEs and competitiveness.

Q: What are the expectations for Porto Seguro's financial results given the current interest rate environment?
A: Celso Damadi explained that the company plans to roll some debt and investments into 2026 to maintain financial results above 2025 levels. They are exploring opportunities in risk premiums and interest rates to sustain nominal financial revenue.

Q: How does Porto Seguro plan to address the challenges in the Auto segment for 2026?
A: Paulo Kakinoff, CEO, emphasized the company's strategy to preserve margins over market share. The company is prepared to navigate competitive and macroeconomic challenges, focusing on maintaining stability and leveraging its strong brand and service quality.

Q: What is the impact of the recent Brazilian Supreme Court ruling on health plan adjustments for Porto Seguro?
A: The company representative stated that Porto Seguro is minimally affected by the ruling. However, it adds unpredictability to the industry, potentially impacting smaller operators more significantly.

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

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