IRB Brasil Resseguros S A : Brazilian insurers wrote R$90.3 billion in premiums in 1H23

Insurance market revenues increased by R$10.3 billion in the first half of 2023 compared to the same period last year. This is what the 33^rd edition of the IRB+Market Bulletin shows, as released today (08/28) by the IRB+Intelligence platform. The high, which represents growth of 12.9%, was driven by the Life and Automobile segments. Altogether, premiums written by insurers in the first six months of the year reached R$90.3 billion.

The report, which considered numbers published by Susep - the sector's regulatory body - on 08/10, indicates that the sector's net profit grew 86.3% compared to the first half of 2022, closing at R$ 17.4 billion. One of the factors that contributed to this was the drop of 12.6 percentage points (p.p.) in the overall loss ratio in 1H23. The ratio ended the semester at 44.3%, mainly influenced by the recovery of the Rural segment, which was very affected in 2022 by weather events.

High driven by Life and Automobile
Life, which closed 1H23 with the highest share of written premiums (32.9%), totaled R$29.7 billion in revenue. This amount is 8.5% higher than that recorded in the same period of 2022. The evolution was mainly driven by the increase in individual (+18%) and group (+6.1%) life insurance.

Automobile, which accounted for 30% of written premiums, ended 1H23 with R$ 27 billion in revenues, an increase of 18.1% compared to 1H22. The segment, which was registering an expansion in total written premiums due to the increase in the prices of vehicles and parts, is now observing the developments of the fleet renewal program, which guaranteed a discount on the purchase price of new vehicles.

In both segments, the loss ratio also improved. In Life, the ratio closed the first half at 29.9%, down 2.5 p.p. compared to 1H22 and a level similar to that recorded before the covid-19 pandemic. In Automobile, the rate of 59.7% is 14.4 p.p. lower than that verified in 1H22. Since April 2022, the segment's loss ratio has been on a downward trend.

Other segments
Corporate Damage and Liability, which accounts for 19.1% of the market, grew 12.7% over the same period of 2022, totaling R$17.3 billion in 1H23. The segment's loss ratio fell by 2.3 p.p., closing at 40.8%. This is the lowest ratio since 2015.

Individual Damage Insurance (7.6% of the market) grew 13% in 1H23 compared to the first six months of 2022, with emphasis on Comprehensive Business (+22.6%) and Residential (+14%) Insurance. Altogether, the segment accumulated R$6.9 billion in revenues and recorded a loss ratio of 34.4% (-4.4 p.p.).

With 7% of the market, Rural accumulated R$6.3 billion in revenues in 1H23, up 10.3% compared to 1H22, driven by resources from the Federal Government's Rural Insurance Premium Subsidy Program. The loss ratio fell from 160.9% in 1H22 to 40.6% in 1H23.

Credit and Guarantee (3.4% of the market) earned R$3.1 billion in 1H23, an increase of 21.1% compared to 1H22. It is the highest revenue in the segment since the beginning of the historical series, in 2014. Loss ratio, however, increased by 55.9 p.p. and reached 80.5% in 1H23.

The IRB+Market Bulletin summarizes insurance operations, considering damage, liability and personal insurance. The edition also lists the top five insurance groups by line of busines and is available in full here. The IRB+Insurance Market Dashboard , which allows dynamic and free consultation of information from the entire sector, is also available.