Net income reached R$ 84.1 million on a recurring basis, up 57.8% over the same quarter the previous year
Sul America S.A. has announced its results for the second quarter of 2009. The company’s net income reached R$ 84.1 million on a recurring basis, up 57.8% over the same quarter the previous year, while annualised ROAE was 14% in the quarter.
In the first half of 2009, recurring net income reaches R$188.4 million, up 9.5% from H1, 2008.
The total insurance premiums moved up to 16.1% in Q2 2009, reaching R$2.1 billion (up 7.6% over Q1,09). In H1,09, insurance premiums increased 12.8% to R$4.1 billion.
Health insurance premiums increased 9% over Q2 2008 (up 2% over Q1,09), with group health portfolio up by 16.1% (up 4.4% on Q1,09), led by growth of 21.8% in policies to small-and-medium-sized enterprises.
Auto insurance premiums climb 22.5% over Q2 2008 (up 23.1% over Q1,09), while insured fleet expands to 2 million vehicles in the quarter.
The total loss ratio reaches 76.5% in the quarter, increasing 410 bps over Q2,08 and 420 bps over Q1 2009. Health insurance closes the quarter with a loss ratio of 85.2%, up 700 bps over Q2,08 and 650 bps on Q1,09. Auto insurance loss ratio declines to 62.9%, 290 bps down over Q2 2008 (down 100 bps over Q1,09). Total loss ratio for the 6M09 reaches 74.4%, increasing 340 bps over H1,08.
The combined ratio reaches 101.1%, up 60 bps on Q2 2008 and 320 bps on Q1 2009. In H1,09, the combined ratio increased 150 bps to 99.5%.
Return on the investment portfolio comes to R$172.4 million in Q2 2009, corresponding to an average yield of 119.5% of the CDI rate (versus 108.1% of the CDI rate in Q1 2009).