SAO PAULO, February 29, 2012 /PRNewswire/ --
- With growth in all of its portfolios, the Company's revenue increased 14.7%, reaching R$ 9.4 billion
In 2011 Sul America S.A. (BM&FBovespa: SULA11) recorded recurring net income* of R$ 448.1 million, 5% above the recurring income of R$ 426.6 of the previous year. This year revenue from premiums increased 14.7%, reaching R$ 9.4 billion. "All our business lines grew" celebrated CEO Thomaz Cabral de Menezes, who stressed the excellent performance of the health, dental and auto insurance portfolios.
Premiums in the health and dental segment, which currently account for 66.2% of SulAmerica's total premiums, with 2.4 million beneficiaries, reached R$ 6.3 billion in 2011, an 18.8% increase compared to the previous year. Also compared to 2010 there was a 7.3% increase in premiums in the auto insurance portfolio, which in 2011 amounted to R$ 2.2 billion, with an insured fleet of 1.5 million vehicles.
"We maintained our strategy of focusing on group health insurance plans and on the small and mid-sized business segment. Our performance in dental plans and insurance was robust, and we ended the year with a portfolio of some 500 thousand members, a reflection of organic growth and the addition of the 140 thousand members of DentalPlan, an acquisition approved in 2011. We were able to reach our target in the auto insurance segment, which is very competitive with pressure on prices and costs," added Menezes.
The executive went on to say that the Company's results in the auto segment were the result of internal pricing processes, a strategy to expand SulAmerica's physical presence across Brazil, stronger relationships with brokers and investment in services through a larger network of Super Service Auto Centers, the C.A.S.A.s, with the inauguration of new units.
Revenue from SulAmerica's P&C portfolio grew 7.2%, with strong growth in the transport, massified insurance and civil liability segments, life and personal accident insurance closed the year with a 7.8% increase in premiums. In addition, its asset management business recorded gains of R$ 26.4 million in 2011, a 26.3% increase compared to 2010.
The Company's claims ratio for the year was 74.5% and its combined ratio 99.6%. Financial earnings were R$ 658.1 million, 29% higher than in the previous year. The profitability of its portfolio not linked to pension and VGBL ("Vida Gerador de Beneficios Livres" or Redeemable Life Insurance) transactions was 110.4% of the CDI rate. SulAmerica ended 2011 with net equity of R$ 3.1 billion and total assets on the order of R$ 13.4 billion.
*It is worth mentioning that in 2010 the Company's income was impacted by the sale of the building where its headquarters are located in Morumbi, Sao Paulo, by the sale of its equity in Brasilveiculos to Banco do Brazil, and healthcare premiums charged retroactively that were recognized. These non recurring events increased that year's income from R$ 426.6 million to R$ 614 million. In this release and for comparison purposes we used only the recurring numbers so as to allow analysts and investors to better analyze the Company's trends.
In the fourth quarter of 2011 insurance premium amounted to R$ 2.5 billion, a 17.1% increase compared to the same quarter in 2010, primarily due to a 26.7% growth in group health insurance premiums portfolio, the result of new sales that increased its portfolio of beneficiaries by 32.4% compared to the third quarter of 2010, and the price adjustments made to existing plans.
Auto insurance premiums reached R$ 576.3 million in the fourth quarter, a 6.9% growth compared to the same quarter last year. The claims ratio was the lowest in the year, or 61.9%.
Premiums in the P&C portfolio totaled R$ 142.2 million in the fourth quarter, a 32.8% increase compared to 4Q10, while the 42.8% claims ratio was a nine percentage point improvement, the result of a better risk acceptance policy and the pricing methodology adopted by SulAmerica.
INFORMATION FOR THE PRESS
SulAmerica - Press Relations Department
Solange Guimaraes / Sara Dalsin / Giseli Cabrini
+55-(11)-3779-7614 / 7615 / 7087
SOURCE Sul America S.A.