Caixa Seguridade (CXSE3) ended the fourth quarter of 2023 with recurring net profit of R$922.4 million, 22.5% above that seen in the same period of 2022. In relation to the third quarter of last year, the holding company’s profit of insurance, pensions and capitalization of Caixa Econômica Federal rose 0.6%, according to the balance sheet released this Thursday.
The company’s operating revenues were R$1.208 billion, growth of 22.1% compared to the same period in the previous year. Of this total, R$679 million came from the results of the group’s companies, an increase of 18.5% in one year. Another R$529.3 million came from commissioning, that is, from the distribution of products from investees in the Caixa network, a growth of 27.1% in one year.
In 2023, Caixa Seguridade had recurring net profit of R$3.482 billion, an increase of 26.3% compared to 2022. The company’s return on equity (ROE) was 66. 2%, 11.6 percentage points above what was seen in the year before last.
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In the fourth quarter, 32% of the holding’s results came from the financial result, compared to 28% in the fourth quarter of 2022. Last year, the financial participation in profit was 31%, compared to 25% in the previous year. The increase in the profitability of the investment portfolio led to greater financial participation: the return reached 90.1% of the CDI in the fourth quarter of last year, compared to 78.7% a year earlier.
The company also reported that insurance revenue in the last quarter of last year was R$2.431 billion, which represents a growth of 21% compared to the same period in 2022. In comparison with the third quarter of last year, the variation was positive in 4.5%.
The best performing branch in the period was credit life, which is sold together with Caixa’s credit operations. In it, revenue rose 79.7%, to R$564.7 million. In the main business, housing, sold with the bank’s housing credit contracts, funds raised rose 10% in one year, to R$836.3 million in the fourth quarter of 2023.
The accident rate in insurance of the holding companies was 21%, a number 7.4 percentage points lower than that of the same period in 2022. According to Caixa Seguridade, the biggest drop was in housing, from 18.5 points, to 17.1%, due to the lower volume of notices.
In the so-called accumulation businesses, revenue from private pension products was R$6.049 billion in the last quarter of last year, an increase of 5.6% compared to the same period in 2022, an inflection after a few quarters of decline. The volume of pension reserves rose 15.9% in one year, to R$155 billion, and the average management fee fell 0.05 points, to 1.12%, reflecting the client’s greater exposure to more conservative funds.
In capitalization, Caixa Seguridade recorded a collection of R$392 million, 107.5% higher than that of the same period in 2022. In consortium products, the volume collected increased by 148.7% in one year, to R$726 .6 million.
Earnings
The Board of Directors of Caixa Seguridade also approved the proposal for the allocation of profits, to be assessed at the next Ordinary General Meeting (“AGM”), scheduled to take place on April 25, 2024, which includes the distribution of: (a) dividends mandatory minimums in the amount of R$1.278 billion and additional dividends in the amount of R$373.4 million, totaling R$1.65 billion. The value of the dividend per share to be distributed is R$0.550580432.
Once the proposal is approved, the dividends will be paid on May 8, 2024, and will be based on the shareholding position of April 26, 2024. In this way, the shares issued by Caixa Seguridade will start to be traded “ex-dividends” from of April 29, 2024, being updated by the SELIC rate from the end date of the fiscal year, December 31, 2023, until the payment date mentioned above (May 8, 2024).
Therefore, considering the anticipated dividends, already distributed on November 6, 2023, in the amount of R$1.5 billion, the proposal foresees the distribution equivalent to 90.0%, totaling the value of R$3.15 billion.
(with Estadão Conteúdo)