By Brazil Stock Guide – Porto Seguro (PSSA3) closed the fourth quarter of 2025 with net profit of R$ 838.7 million, up 25% from a year earlier, capping a year of strong earnings growth driven by its expanding multi-vertical ecosystem. For the full year, profit reached R$ 3.38 billion, an increase of 27.8% compared with 2024, while return on average equity (ROAE) rose to 22.7%, comfortably above the 20% threshold for the second consecutive year.
Total revenue in the quarter climbed 11% year on year to R$ 11 billion, supported by double-digit growth across most business lines. Quarterly ROAE stood at 22.5%, up 2.2 percentage points from 4Q24, underscoring the company’s ability to translate top-line expansion into sustained profitability even amid a competitive insurance market in Brazil.
The Porto Bank division delivered one of the strongest performances in the quarter, with revenue jumping 31% year on year to R$ 2.1 billion. Growth was driven primarily by consórcio products, which expanded 38%, alongside higher volumes in cards, loans and financing. Net profit at the Bank unit increased 35% to R$ 219 million, while efficiency indicators continued to improve, reflecting tighter cost control and scale gains.
In Health, Porto Saúde reported quarterly revenue of R$ 2.3 billion, up 23%, as the number of health insurance beneficiaries rose to 831,000 and dental plans exceeded 1.2 million lives. Lower claims ratios supported a combined ratio of 89%, while net profit advanced 22% to R$ 169.7 million. Despite a sequential decline, ROAE remained elevated at 32.7%, confirming the segment’s growing relevance within the group.
The core insurance operation showed more moderate growth, with premiums and revenue totaling R$ 5.8 billion, up 3% from a year earlier. Auto premiums were broadly stable, but the insured fleet expanded nearly 4%, while property and life insurance posted double-digit growth. The combined ratio improved to 85.3%, underpinning a 4% increase in quarterly profit to R$ 459 million.
Services also contributed to earnings momentum, with revenue rising 3% to R$ 663 million and net profit surging 42%, supported by the rapid expansion of digital products. Financial income totaled R$ 289 million in the quarter, benefiting from active portfolio management and allocations in inflation-linked securities.
Taken together, the results reinforce Porto Seguro’s strategic transition from a predominantly auto-focused insurer into a diversified financial services ecosystem — a shift that is now translating into faster earnings growth, improving efficiency and consistently higher returns on equity.
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