SAO PAULO, February 28, 2011 /PRNewswire/ --
- Insurance premiums totaled R$ 8.4 billion, increasing 15.2% during the year, with highlights for group health and auto insurance portfolios
SulAmerica S.A. (BM&FBovespa: SULA11) registered total net income in 2010 of R$ 614.0 million, increasing 48.5% over 2009. Thomaz Cabral de Menezes, SulAmerica's president, is celebrating his first year in charge. "This is the largest result ever achieved by the company in its entire history of more than 115 years." Thomaz explains that, in recurring terms, net income was R$ 426.6 million, also exceeding the results of previous fiscal years assessed on the same basis. He adds that the sale of the participation of SulAmerica in Brasilveiculos, as well as the sale of the building where company headquarters are located in Sao Paulo, among other things, also had a very positive effect on profits for the year.
SulAmerica's insurance premiums grew by 15.2%, coming to R$ 8.4 billion. For the year, the total loss ratio came to 71.1%, declining 360 bps in relation to 2009. The combined ratio - which measures the insurer's operational efficiency - decreased 220 bps, coming to 97.5%.
In the fourth quarter, the insurer's total net income came to R$ 286.3 million, with an increase of 91.1% in relation to the same quarter of 2009. During this period, recurring net income was R$ 158.3 million, excluding the effects of non-recurring events registered during the quarter. Revenue from insurance premiums exhibited an increase of 16.1% between the quarters compared, totaling R$ 2.2 billion. The loss ratio stood at 65.6%, declining 750 bps in relation to the fourth quarter of 2009.
In 2010, health insurance premiums, which represents nearly 63% of the company's total insurance premiums, went up 17.3% in relation to 2009, reaching R$ 5.3 billion, with 2 million insured members. The excellent performance of the group health insurance portfolio was explained by the expansion of new sales and by the price increases applied to existing policies. The health insurance segment for small and medium enterprises (SME) was one of the highlights for 2010, presenting an expansion of premiums of 29.9% for the year. Similarly, the dental plan portfolio, which registered a growth of 57.4% in the number of beneficia insured members, closed 2010 with a total of approximately 265,000 beneficiaries.
Among the year's achievements, Menezes underscores the restructuring of the company's commercial department, the establishment of new partnerships in distribution and the agreement signed for the acquisition of Dental PLAN. He explains that this acquisition is aligned with SulAmerica's strategy always to take advantage of the best opportunities in the market. The deal with Dental PLAN will allow the company to expand still further its activities in the dental segment. Dental PLAN is an operator of dental plans with activities concentrated in the North and Northeast regions of Brazil, which has also shown significant expansion in the Southeast region. The operation is awaiting approval from the competent authorities, and when approval is given, it will add more than 120,000 members to the insurer's current portfolio of dental plans.
In the auto insurance segment, an area that accounts for nearly 25% of total company premiums, revenue grew by 25.4% in relation to 2009, closing the period with R$ 2.1 billion, and with an insured fleet close to 1.4 million vehicles. The company, which has seen an increase in sales primarily in the South and Southeast regions, has been registering growth above the market average. According to SUSEP data, the auto insurance market showed an increase of 15.3% in 2010, while SulAmerica grew by 25.4%, achieving a market share of 10.4%.
Menezes considers that the company simply understood how to make the most of a good moment in the auto insurance market to expand its insured fleet and increase its share in some of the key regions of the country. "SulAmerica has consolidated itself as the largest independent insurer in Brazil, and tightened its relationship still further with insurance brokers." He emphasized, moreover, the expansion of the network of Super Service Auto Centers (C.A.S.A. - Centros Automotivos de Super Atendimento) for auto insurance policy holders, with the inauguration of 11 new units in 2010. "Our C.A.S.A.'s offer differentiated services and a unique car care experience."
Premiums for life and personal accident insurance, which account for 7% of the company's total insurance premiums, went up by 19.6% in relation to 2009, totaling R$ 594.9 million. This growth was explained by the good performance of the VGBL portfolio, which in the last quarter of the year grew by 151.1%.
The volume of assets managed by Sul America Investimentos D.T.V.M. S.A. increased 21.3% in 2010. The company ended 2010 with R$17.5 billion, based on data from the Brazilian Association of Investment Banks (ANBIMA).
The company balance sheet indicates that dividends of R$ 291.7 million are to be paid out, which corresponds to 50% of adjusted net income, in accordance with a proposal that is to be brought before the shareholder's assembly.
In closing, Menezes celebrates the recognition of SulAmerica for the evolution of its governance and sustainability practices. "The fact that we have been recognized by the IBGC, to be part of the portfolio of the ISE (Business Sustainability Index) for the second consecutive year, and to be among the best place to work in Rio de Janeiro and among the best place to work in Brazil, confirms the success of our practices."