Brazil’S Porto’S Profit Soars By 90.2% In First Quarter
Date
5/15/2024 6:37:26 AM
(MENAFN- The Rio Times) Porto, formerly Porto Seguro, reported a net profit of R$ 651 million ($126.3 million) for the first quarter. This marked a 90.2% increase from the same period in 2023.
The company's profit surge highlights its influence in the Brazilian insurance market.
Porto's total revenue rose by 14.2% to R$ 8.6 billion ($1.67 billion). Growth in various sectors drove this increase.
Porto Saúde, the group's health plan operator, significantly boosted revenue. It experienced a 48.9% growth, reaching R$ 1.5 billion ($291 million).
A 31.7% rise in health insurance beneficiaries, totaling 562,000, contributed to this growth.
The auto insurance segment, Porto's largest, saw a 5.4% increase in premiums, amounting to R$ 3.8 billion ($737.9 million).
The number of insured vehicles grew by 5.6%, reaching a record 6 million. Porto reported a 5.3 percentage point decrease in claims rate, now at 56.2%.
Improved claims control and fewer flood impacts contributed to this decrease. Porto Bank reported R$ 1.3 billion ($252.4 million) in revenue, up 21% from the previous year.
A 38.7% increase in consortium product revenues drove this growth.
Credit card transaction volumes rose by 17.7% to R$ 13.6 billion ($2.64 billion).
The bank focused on selling products to existing customers.
Brazil's Porto's Profit Soars by 90.2% in First Quarter
The credit operation delinquency rate fell by 1 percentage point to 6.5% for delays exceeding 90 days.
Porto's restrictive lending practices helped control this indicator effectively.
Porto Serviço, a new entity established last year, generated R$ 612.4 million ($118.9 million) in revenue.
It conducted 1.2 million services in the first quarter of 2024.
This comprehensive growth across various segments underscores Porto's strong market position.
The company's diverse offerings and strategic focus on different sectors have paid off.
Porto's ability to manage claims effectively and expand its customer base drives its financial performance.
As Port continues to grow, its impact on Brazil's insurance market becomes more pronounced.
This success story highlights the importance of strategic diversification and effective management in achieving financial gains.
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