By Brazil Stock Guide – Porto Seguro S.A. (B3: PSSA3) reported a net profit of R$832 million in the third quarter of 2025, up 13% from a year earlier. Revenue rose 11% year-on-year to R$10.5 billion, while return on average equity (ROAE) reached 23%, marking the fifth consecutive quarter above the 20% threshold. The insurer’s core business remained robust, with its insurance arm delivering a 32% ROAE, and the company continued to expand its ecosystem — with Porto Saúde, Porto Bank, and Porto Serviços now accounting for 44% of total profit.
Diversified Growth Drivers
The health unit stood out with a 65% jump in profit, reaching R$126 million, while revenue grew 27% to R$2.2 billion, boosted by a 22% increase in health beneficiaries and 20% in dental plans. The combined ratio improved by two percentage points to 92%, reflecting greater operational efficiency and scale.
Porto Bank posted net income of R$196 million (+19% YoY) and revenue of R$1.9 billion (+29%), driven by strong performance in capitalization (+45%), consortia (+30%), and loans (+25%). The risk-adjusted net interest margin (NIM) rose to 3.4%, while the loan portfolio expanded 19.5% to R$21.7 billion.
Porto Serviços, the group’s digital and assistance arm, saw revenue fall 2% due to lower demand for auto-related services but reported 60% growth in digital products during the quarter and 95% growth year-to-date.
Insurance Core Remains Strong
The insurance division reported R$5.7 billion in revenue (+3%), with standout growth in life (+13%) and property (+11%) segments. The auto portfolio — still the group’s main source of premiums — grew 4%, adding 255,000 vehicles to reach 6.2 million insured units, with net income of R$451 million (+5%) and a combined ratio of 85.3%.
Property insurance premiums rose 11% to R$939 million, while life insurance climbed 13% to R$480 million, supported by bundled products such as Proteção Turbinada, which combines life and health coverage for small and mid-sized companies.
Efficiency and Recognition
Financial income jumped 53% to R$383 million, supported by stronger results in the investment portfolio despite weaker returns on inflation-linked assets. The efficiency ratio improved to 10.7%, from 11.1% a year earlier, thanks to cost control and increased digitalization.
Porto Seguro was once again named among Brazil’s Top 10 Best Companies to Work For (GPTW 2025) and retained its Top of Mind recognition in the insurance category for the 12th consecutive year. CEO Paulo Kakinoff said the company’s results reflect “the consistency of Porto’s diversification strategy and disciplined expansion across all verticals, which continue to generate sustainable returns.”
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