SulAmerica grows 14.2% in the first half of the year and premiums reach R$ 5.1 billion
RIO DE JANEIRO, July 31, 2012 /PRNewswire/ — SulAmerica S.A. (BM&FBovespa: SULA11) ended the first half of 2012 with R$ 5.1 billion in premiums, which represent 14.2% growth over last year’s same period. Premiums for 1Q12 grow 13.9% and reach R$ 2.6 billion.
The Company’s most important portfolios kept their good performance in sales, especially in health and dental insurance, which performed in line with the first quarter of 2012. Health and dental premiums continued to experience strong growth, totaling R$ 3.5 billion, a 19.3% increase compared to the first half of 2011.
The Corporate health insurance segment, with 1.2 million members grew 22.5% and 20.6% in the first half and second quarter of 2012 over last year’s comparative periods, respectively. The Small and Medium Enterprises Health segment (SMEs) grew 30.3% compared to the second quarter of 2011.
The dental care segment, with premiums totaling R$ 23.8 million in the second quarter of 2012, grew 40.1% over last year’s same period. The Dental portfolio ended the quarter with 495 thousand members, up 25% compared to the same period in 2011. “The results obtained in the health and dental portfolio is due to our strong relationship with brokers and a wide acceptance of a product line that has been commercialized since last year. These results have provided conditions for the Company to become more competitive and one of the largest in the health insurance market in Brazil”, says SulAmerica’s CEO, Thomaz Cabral de Menezes.
Revenues from car insurance in the first half of 2012 represented 21.7% of all premiums for the Company, totaling R$ 1.1 billion, growing 4.0% over the same period last year, with the insured fleet reaching 1.5 million vehicles.
Pension and VGBL reserves finished the quarter at R$ 3.5 billion, with a highlight for the 15.1% growth of the VGBL portfolio alone.
SulAmerica’s Asset Management business accumulated funds of R$ 21.8 billion at quarter end, representing growth of 26.2% over the reserves held at the end of the first half of 2011. The segment’s highlight was the evolution of the third-party portfolio, which increased by 41.1% over the same comparative period.
The portfolio consisting of our own reserves (not linked to private pension and VGBL), returned the equivalent of 108.3% of the CDI in the first half of 2012.
Thomaz Menezes yet highlights that the company continues to invest in regional infrastructure development and expand the portfolio of products and services. In line with that, four new branches were opened in the quarter, ending the period with 68 branches throughout Brazil. The Company also launched new products, such as SulAmerica Capital Global and SulAmerica Previdencia PME, which are insurance and private pension products developed specifically for the fast-growing small and medium enterprises segment. Still within the quarter, it was announced the signing of an agreement to acquire Sulacap, the fourth largest capitalization in the country, expected to be an excellent opportunity for SulAmerica, as it will enter a new market segment and reach new customers.
Net income was R$ 3.6 million in the second quarter of 2012, a decrease of 86.8% over last year’s comparative period. The fall was mainly due to higher loss ratios in the Company’s two main business segments. The loss ratio in Health increased to 88.2%, in line with other companies operating in the healthcare market in Brazil. Additionally, the period was marked by premium price increases below medical and hospital costs and also by an increase in the frequency of utilization.
The Auto portfolio loss ratio reached 67.7%, an increase of 350 bps in the quarter compared to last year’s same period, mainly due to an increase in frequency of vehicles theft and robbery in the major Brazilian cities.
“Among other factors impacting SulAmerica’s results, there was the drop in the overall basic interest rates in Brazil. Even considering the constant downward revisions in Brazilian GDP forecasts and taking into account a still unstable international economic environment, our outlook for the Brazilian insurance market continues optimistic. We will remain focused on continuously improving our processes and services in order to keep SulAmerica growing and delivering the returns our shareholders expect”, says the company’s CEO.
SulAmerica – Press Relations
Rio de Janeiro
Sara Dalsin / Solange Guimaraes
55(11) 3779.7615 / 7614
SOURCE SulAmerica S.A.