Caixa Seguridade (CXSE3) makes profit grow 26% from one year to the next | Companies

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A Safe deposit box (CXSE3) presented a recurring managerial net profit of R$3.481 billion in 2023, with growth of 26.3% compared to 2022. This result excludes gains from the sale of stakes of R$20.3 million. In the fourth quarter, recurring net profit totaled R$922.4 million, an annual increase of 22.5%.

According to Caixa Seguridade, “the 2023 performance reflects the level of maturity of the structure of strategic partnerships and its own brokerage implemented by the company and the combination of commercial, operational and financial results throughout the year”.

The holding presented a return on equity (ROE) of 66.2% at the end of 2023, an increase of 11.6 percentage points in one year. Operating revenues reached R$4.583 billion in 2023, an annual increase of 26.4%. In the fourth quarter, the line reached R$1.208 billion, which represented a growth of 22.1% in the annual reading and an increase of 0.4% compared to the third quarter of 2023.

According to the company, “of total revenues, 56.5% correspond to equity interests, with growth of 33.6% in the ratio between 2023 and 2022”. The highlight, according to the group, was the performance of the investees Caixa Vida e Previdência, Caixa Residencial, Caixa Consórcio and Caixa Capitalização.

The net financial result in the grouped view, which considers the effect of all participations, represented 30.8% of the net profit for 2023 and 31.9% of the fourth quarter result. Alone, the affiliate Caixa Vida e Previdência accounted for 66.3% of the result.

Commission revenues represented 43.5% of operational revenues, an increase of 18.2% compared to 2022. These commissions correspond to revenues from access to the Caixa Econômica Federal distribution network, insurance brokerage and use of the brand.

Insurance premiums reached R$9.2 billion in 2023, the group’s highest historical value and 8.5% higher than in 2022. Life, home and housing insurance stood out, with expansion, respectively, of 12.5%, 5.8% and 9.6%.

Accumulation businesses, which cover pensions, consortiums and capitalization, showed a reduction of 11.1% in total collection in 2023. Performance was impacted by the lower volume of pension funding, which fell 18.9% to R$25.4 billion in 2023 compared to the previous year. According to the company, the drop was “a reflection of greater competition with other bank funding products during 2023”. Despite the decline in gross revenue, net pension funding was positive at R$5.3 million.

In 2023, the accident rate indicator remained below the historical level, with an improvement of 3.5 percentage points compared to 2022. There was a reduction in the volume of notices of credit life and housing claims. In the quarterly view, the indicator fell 7.4 points compared to the fourth quarter of 2022.

The combined index, a metric that considers the relationship between revenues and expenses, including claims, improved in 2023, with a reduction of 3.7 percentage points compared to 2022, reaching 56.1%.

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