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E A R N I N G S 4Q24 EARNINGS RELEASE PSSA3 ADRIANA IT Governance Analyst 2 years with Porto
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4Q24 EARNINGS RELEASE PORTO SEGURO S.A. 2 CONSOLIDATED SUMMARY – 4Q24 AND 2024 VS. 4Q23 AND 2023 Total Revenue R$ 10 bn (+14%) ROAE ¹ 21.5% (-2.4 p.p.) Clients 18 mn Businesses 30 mn Total Revenue R$ 37 bn (+13%) ROAE ¹ 20.3% (+0.6 p.p.) 4Q24 2024 (1) Excluding the net impact of the write-off of the Car Subscription product in the amount of R$ -41 million, the effect of R$ -14 million from the rollover of securities in the financial investment portfolio and non-recurring gains of R$ 16 million associated with the operation with Oncoclínicas. Recurring Net Income ¹ R$ 710 mn (+3%) Net Income R$ 671 mn (-3%) Recurring Net Income ¹ R$ 2.7 bn (+18%) Net Income R$ 2.6 bn (+17%)
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56.5% Loss Ratio - Auto (+0.6 p.p.¹) 16.6 mn Items/Lives (+10%) (1) For comparison purposes, between 4Q23 and 4Q24, the Adjusted Loss Ratio in 4Q23 considers the Assistance markup, which starte d to be considered as of 1Q24. (2) Compares the delinquency of credit operations over 90 days from December 2024 against December 2023. 3 75.1% Loss Ratio (-0.7 p.p.) +132 K Members of Health Insurance -1.4 p.p. Over 90² +21% Revenue 16.1% EBITDA margin R$ 103 mn EBITDA 4Q24 EARNINGS RELEASE PORTO SEGURO S.A. VERTICALS SUMMARY 4Q24 VS. 4Q23
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5,404 1,356 1,308 5,619 1,863 1,584 641 21 3 4 4Q23 4Q24 4Q23 4Q244Q23 4Q24 4Q24 4 +14% Total Revenue (YoY) Revenue by Line of Business (R$ million) (1) Includes premiums and contributions from Auto, P&C, Life, Pension Plan, Uruguay and other businesses / (2) Consisting of Health Insurance, Dental Insurance, Managed Plans and Occupational Health / (3) Includes premiums and income from Credit Card, Loan, Financing, Financial Risks, Consortium, Investment and Capitalization / (4) Porto Serviço Vertical is segmented between Porto Assistência, Partnerships and B2C, mainly offering assistance services for households, companies and vehicles. +4.0% +37.4% +21.1% 4Q24 EARNINGS RELEASE PORTO SEGURO S.A. REVENUES - DOUBLE-DIGIT GROWTH IN TOTAL REVENUE
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(1) The consolidated ROAE differs from the average of the verticals mainly due to the holding results and other businesses. 5 30% 38% 26%27% 20% ROAE without Surplus Capital 30% ROAE Total ¹ ROAE above 20% in all Business Units 4Q24 EARNINGS RELEASE PORTO SEGURO S.A. PROFITABILITY – ROAE GREATER THAN 20% ACROSS ALL BUSINESS OPPORTUNITIES ROAE Breakdown - 4Q24
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63% 10% 22% 5% Healthcare Bank Service Insurance 55% 17% 20% 7% Healthcare Bank Service Insurance Net income: R$ 689 mn² Net income: R$ 710 mn² Auto* Other Insurance* 65% 35% Auto* Other Insurance* (1) It does not specify the results of other businesses. (2) Recurring Net Income * Share in the Insurance Vertical Underwriting Result. 6 4Q244Q23 +3% 4Q24 EARNINGS RELEASE PORTO SEGURO S.A. DIVERSIFICATION OF RESULTS – CONSISTENT AND DIVERSIFIED GROWTH IN RESULTS¹ Net Income Breakdown¹ 73% 27%
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67% 8% 16% 9% 57% 14% 22% 7% 71% 29% Auto* Other Insurance* 64% 36% Auto* Other Insurance* 7 Healthcare Bank Service Insurance Healthcare Bank Service Insurance Net income: R$ 2.3 bn² Net income: R$ 2.7 bn² 20242023 4Q24 EARNINGS RELEASE PORTO SEGURO S.A. DIVERSIFICATION OF RESULTS – CONSISTENT AND DIVERSIFIED GROWTH IN RESULTS¹ Net Income Breakdown¹ (1) It does not specify the results of other businesses. (2) Recurring Net Income * Share in the Insurance Vertical Underwriting Result. +18%
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179.3 (55%) 310.0 (81.4%) Total Revenue (% CDI) Rollover of Securities (1) -0.7 Pension Plan (Traditional) (2) 7.3 ALM PortoCap (2) 346.6 (90.4%) Final Revenue (% CDI) 30.1 39% 40% 39% 21% 36% 36% 28% 16% 19% 9%4% 3% 3% 4Q23 5% 3Q24 3% 4Q24 (1) In 4Q24 we rolled over government bonds to longer maturities at higher rates. (2) Result generated on funds invested by the Company to mitigate the mismatch between assets and liabilities (ALM) of Tradit ional Pension operations (product whose sale was discontinued), Credit Operations (Porto Bank) and Capitalization (PortoCap). 8 Shares Credit Nominal rate Actual Interest Floating rate Revenue from the financial investment portfolio (ex-pension plan, roll-over of securities and ALM), managed by the Treasury, was R$ 346.6 million in 4Q24, which accounts for 90.4% of CDI. 4Q24 EARNINGS RELEASE PORTO SEGURO S.A. FINANCIAL INVESTMENT PERFORMANCE Breakdown of Nominal Portfolio – 4Q24 (R$ M) Breakdown and Profitability of Investment Portfolio
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792 369 901 406 Auto P&C Life 4,099 4,161 +1.5% +13.8% +10.0% 4Q23 4Q24 (1) Includes premiums and contributions from Auto, Property and Casualty, Live, Pension Plan and Uruguay. 9 R$ 5.6 bn Porto Seguro¹ Revenue in 4Q24 (+4.0% vs. 4Q23) R$ 21.4 bn Porto Seguro¹ Revenue in 2024 (+3.4% vs. 2023) 4Q24 EARNINGS RELEASE PORTO SEGURO S.A. Quarterly Premiums - Main Products (R$ million) PORTO SEGURO VERTICAL
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(1) Comparing, the Adjusted Loss Ratio in 2023 considers the Assistance markup, which started to be considered as of 1Q24. 10 Auto P&C Life 55.9% 56.5% 43.9% 37.7% 33.7% 33.7% +0.6 p.p. -6.2 p.p. 0 p.p. 4Q23 4Q24 4Q24 EARNINGS RELEASE PORTO SEGURO S.A. Quarterly Loss Ratio¹– Main Products (%) 51.1% Porto Seguro Loss Ratio in 4Q24 (-1.1 p.p. vs. 4Q23¹) 51.4% Porto Seguro Loss Ratio in 2024 (-0.2 p.p. vs. 2023¹) PORTO SEGURO VERTICAL
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5.6% 10.2% 19.5% 64.7% Other Life P&C Auto Impact of rains in Rio Grande do Sul (R$ million) Net Income (R$ million)ROAE (% p.a.) Porto Seguro: Net income of R$ 441 million and ROAE of 29,7% in the quarter and Net Income of R$ 1.6 billion in 2024. 474 412 399 373 430 441 87 33.4% 4Q23 29.0% 4Q23 Adjusted¹ 26.9% 1Q24 24.9% 2Q24 28.9% 3Q24 29.7% 4Q24 461 (1) Adjustment of 4Q23 to allow comparability with 4Q24, since from the first quarter of 2024 onwards, mainly, the loss ratio, IC, ICA, earnings and ROAE began to be impacted by the Assistance operation markup. 11 4Q24 EARNINGS RELEASE PORTO SEGURO S.A. Distribution of Subscription Result (4Q24) (%) Net Income and Profitability¹ (R$ mn) PORTO SEGURO VERTICAL
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413 543 641 675 4Q22 4Q23 +24.3% +5.3% Members - Health Insurance (thousands) 834 1.275 1.638 1.771 +38.9% +8.2% Premiums - Health Insurance (R$ million) 3Q24 4Q24 12 +132 K Lives Insured in Health (+24.3% vs. 2023) R$ 6.6 bn Total Premiums and Revenues of Porto Saúde in 2024 (+43.9% vs. 2023) R$ 394 mn Net income in 2024 (+96.4% vs. 2023) 4Q24 EARNINGS RELEASE PORTO SEGURO S.A. Members and Premiums - Health Insurance 4Q22 4Q23 3Q24 4Q24 PORTO SAÚDE VERTICAL
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+90.3% CAGR Net Income (2021−2024) 4Q23 1Q24 49.3 2Q24 3Q24 123.2 4Q24 72.7 138.8 23.5% 66.5 33.2% 105.3 23.4 22.2% 22.2% 76.7 15.6 38.0% Oncoclínicas Impact¹ Result (R$ million) ROAE (% p.a.)² (1) Non-recurring impact of R$ 23.4 million in 2Q24 and R$ 15.6 million in 4Q24 related to the closing of the transaction with Oncoclínicas. (2) To calculate Vertical’s ROAE, Shareholders’ Equity started to consider the effect of the commission deferral. 13 4Q24 EARNINGS RELEASE PORTO SEGURO S.A. Net income and Profitability 2021 2022 2023 2024 12.1% 57.1 15.6% 86.3 17.7% 200.4 27.0% 393.6 Result (R$ million) ROAE (% p.a.) PORTO SAÚDE VERTICAL
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14 4Q23 1Q24 2Q24 3Q24 4Q24 77.1% 72.7% 80.7% 79.2% 76.2% -0.9 p.p. 4Q23 1Q24 2Q24 3Q24 4Q24 75.8% 71.4% 79.4% 78.1% 75.1% -0.7 p.p. Loss Ratio - Health and Dental InsuranceLoss Ratio - Health Insurance 4Q24 EARNINGS RELEASE PORTO SEGURO S.A. Health Insurance and Health + Dental Insurance Loss Ratio Loss ratio1 of 75.1% in 4Q24 (1) Health + Dental loss ratio PORTO SAÚDE VERTICAL
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R$ 1.6 mn Revenue +21.1% R$ 162 mn Net Income +11.6% 26.7% ROAE¹ -11.7 p.p. 33.5% Efficiency Ratio² +2.2 p.p. 4.6 mn Business +16.3% 4Q24 (vs 4Q23) 2024 (vs 2023) R$ 5.8 mn Revenue +22.4% R$ 632 mn Net Income +53.2% 26.0% ROAE¹ -1.3 p.p. 32.9% Efficiency Ratio² -1.3 p.p. (1) ROAE: From 2024 onwards, the calculation basis for Porto Bank’s Average Shareholders’ Equity and ROAE considers the capit al adequacy required for Card and Loan and Financing operations. | (2) Efficiency Ratio: new calculation methodology (Expenses / Net Reve nue – Rewards – Commission) 15 Credit risk adjusted to the profile of our clients and lower than the market. Aligning operational efficiency, generating solid and consistent results linked to the strategy of operating in the Porto ecosystem. 4Q24 EARNINGS RELEASE PORTO SEGURO S.A. PORTO BANK VERTICAL
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(1) Annualized Cost of Credit over Average Loan Portfolio (360 days) | (2) Efficiency Ratio: new calculation methodology (Exp enses / Net Revenue – Rewards – Commission) 16 8.5% 8.3% 8.2% 8.3% 9.1% 7.7% 4Q23 1Q24 2Q24 3Q24 4Q24 31.3% 31.0% 33.1% 34.0% 33.5% Disregarding the portfolio sale 4Q24 EARNINGS RELEASE PORTO SEGURO S.A. Credit Cost¹ (Card + Loans and Financing) Efficiency Ratio² 4Q23 1Q24 2Q24 3Q24 4Q24 PORTO BANK VERTICAL
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Source: (*) Bacen, weighted by the company's comparable portfolio. 17 NPL 90 days 6.6% 6.5% 6.4% 6.4% 5.2% 7.1% 6.9% 7.1% 7.4% 6.9% 6.1% 4Q23 1Q24 2Q24 3Q24 Porto Bank Market*Porto Bank¹ ¹Disregarding the portfolio sale 4Q24 14.9 15.0 15.2 15.7 16.6 1.6 1.5 1.4 1.4 1.31.1 1.1 1.1 1.2 1.317.5 17.6 17.8 18.2 19.2 4Q244Q23 1Q24 2Q24 +9.8% Loan Financing Credit Card 3Q24 4Q24 EARNINGS RELEASE PORTO SEGURO S.A. Loan Portfolio (R$ billion) PORTO BANK VERTICAL Default NPL
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Revenue Distribution (%) +24.5% Revenues from Strategic Partnerships (B2B2C) - 4Q24 vs. 4Q23 0.7% 26.0% 73.2% Porto Seguro Partnership Strategic partnerships B2C 723 K Car services 667 K Services for homes and businesses 81 pts NPS Net Promoter Score 4Q24 EARNINGS RELEASE PORTO SEGURO S.A. 18 PORTO SERVIÇO VERTICAL
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Net income and Profitability 4Q24 EARNINGS RELEASE PORTO SEGURO S.A. 1Q24 2Q24 3Q24 4Q24 21.1% 55.6 21.9% 59.1 23.7% 64.3 25.6% 71.5 Porto Result + Minority Interest (R$ million) ROAE R$ 103 M EBITDA and 16.1% EBITDA Margin in 4Q24 R$ 411 M EBITDA and 16.4% EBITDA Margin in 2024 R$ 251 M Income and 22.4% ROAE in 20241 (1) Result and ROAE referring to Porto + Minority Interest PORTO SERVIÇO VERTICAL 19
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Range Vertical Earned Premium Change (vs. 2023) +2 to +5% Vertical Loss Ratio 51 to 55% Vertical G&A Ratio 10.3 to 11.2% Range Vertical Earned Premium Change (vs. 2023) +25% to +40% Vertical Loss Ratio 75 to 80% Vertical G&A Ratio 4.5 to 5.5% Range Total Vertical Revenue Change (vs. 2023) +14% to +22% Credit Losses (R$ bn) -1.9 to -2.3 Efficiency Ratio 32.5 to 35% Range Total Vertical Revenue (R$ bn) 2.5 to 2.8 Vertical G&A Ratio 8.0 to 9.0% Range Financial Result (R$ bn) 1.2 to 1.4 Effective rate 30 to 34% The Company clarifies that the projections disclosed reflect Management’s expectations regarding the Company’s business and therefore do not represent a promise of performance or result. The realization of these expectations will depend on several factors, many of them external to the Company, and actual results may differ from the projections presented. The projections will be monitored and reviewed by the Company, pursuant to the applicable regulations. 20 4Q24 EARNINGS RELEASE PORTO SEGURO S.A. PROJECTIONS FOR THE YEAR 2025
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AUTO (Written Premium – R$ bn) 1.0 1.1 0.9 1.0 48.5 63.014.4 14.4 11M23 27.4% R$ 52.6 bn (+2.9%) 11M24 RESIDENTIAL (Written Premium – R$ bn) 20.7% 11M23 11M24 R$ 5.5 bn (+17.4%) R$ 3.9 bn (+9.8%) R$ 1.6 bn (+25.6%) R$ 477.5 bn (+26.6%) 11M23 11M24 24.7% P&C (COMMERCIAL) (Written Premium – R$ bn) 11M23 11M24 CONSORTIUM (REAL ESTATE) (Managed Credit – R$ bn) 13.2% 0.7 0.9 11M23 11M24 LANDLORD PROTECTION (Written Premium – R$ bn) 56.4% MARKET SHARE TOTAL MARKET 21Source: Susep and Bacen +33.2%+30.0%+11.7%+8.9%-0.1% 4Q24 EARNINGS RELEASE PORTO SEGURO S.A. Porto has been gaining market share in other markets. PORTO VS. MARKET
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CARD (Credit portfolio - Individuals – R$ bn) 2.8% R$ 587.4 bn (+9.7%) CONSORTIUM (VEHICLES)* (Managed Credit – R$ bn) 2.6% R$ 578.4 bn (+6.2%) R$ 261.3bn (+12.0%) R$ 50.5 bn (+13.2%) 1.8% HEALTH + DENTAL* (Written Premium – R$ bn) LIFE (Written Premium – R$ bn) 2.9% MARKET SHARE TOTAL MARKET 22Source: Susep, Bacen, and ANS * Data available up to 9M24 +8.8%+49.4%+38.9%+11.6% 11.0 15.2 3.1 4.6 1.4 1.514.7 16.4 11M23 11M249M23 9M249M23 9M2411M23 11M24 4Q24 EARNINGS RELEASE PORTO SEGURO S.A. Porto has been gaining market share in other markets. PORTO VS. MARKET
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Q&A 4Q24 EARNINGS RELEASE PSSA3
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4Q24 EARNINGS RELEASE PORTO SEGURO S.A. Any statements that may be made during this conference call, regarding Porto Seguro's business prospects, projections and operational and financial goals, constitute beliefs and assumptions of the Company's management, as well as currently available information. Forward-looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions, as they refer to future events and, therefore, depend on circumstances that may or may not occur. Investors should understand that general economic conditions, industry conditions and other operating factors may affect Porto Seguro's future performance and may lead to results that differ materially from those expressed in such forward-looking statements. DISCLAIMER AUGUSTO Broker 17 years with Porto AGEU Manager, Basic Line 13 years with Porto
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Contact Alameda Barão de Piracicaba, 740 – 11º andar – São Paulo, SP https://ri.portoseguro.com.br gri@portoseguro.com.br