HAPV3

Hapvida is a Brazilian supplemental healthcare company founded in 1979 in Fortaleza (CE), following the creation of Clínica Antônio Prudente by oncologist Candido Pinheiro Koren de Lima. Throughout the 1980s, the clinic was expanded until it became a hospital, consolidating the group’s care base. In 1993, Hapvida Assistência Médica was incorporated and began operating as a health plan provider, initially with the goal of generating revenue to support Hospital Antônio Prudente. In 1996, the shareholders decided to separate the insurance and hospital businesses, but from 2000 onward they concluded that the ideal model would be integration between the two fronts, repositioning the insurer as the main revenue generator and the hospitals as the structure dedicated to serving plan beneficiaries. This strategic shift gave rise to the company’s current verticalized model, whose expansion accelerated from 2004 with investments in its own network and acquisitions.

Hapvida’s growth trajectory has been marked by strong inorganic expansion, especially in the North and Northeast regions. Between 2008 and 2010, the company structured its dental care service, initially under the Mais Odonto brand, and acquired Hospital Espinheiro in Recife (PE) and local groups such as MMS PE, Santa Clara and Santa Helena. In 2011, it expanded its presence in Ceará, Maranhão, Alagoas and Bahia with acquisitions such as Santa Saúde, Dental Vida, São Lucas and portfolios from Santa Helena, in addition to opening Hospital Teresa de Lisieux in Salvador (BA). Between 2014 and 2017, the group continued to expand its hospital infrastructure, opening new hospitals, emergency care units and clinics in several states, while investing in technology and consolidating the Hapvida + Odonto brand for nationwide dental plans. In 2017 and 2018, it carried out a broad corporate reorganization of its subsidiaries to simplify the structure and increase management efficiency.

From 2019 onward, Hapvida intensified growth through acquisitions of health insurers and hospitals in new regions, including the countryside of São Paulo, Goiás, Minas Gerais, Pará, Bahia and the Federal District. Groups such as São Francisco, América, RN, Medical, São José, Promed, Premium Saúde and hospitals of different sizes were incorporated, expanding both the beneficiary base and the reach of its own network. In Joinville (SC), the company marked its entry into the South region with a fully verticalized operation, including a high-complexity hospital, clinics and diagnostic units. In parallel, it carried out targeted moves in technology, such as the acquisition of Maida Health, a healthcare BPO healthtech, later divested along with other assets considered non-core, such as São Francisco Resgate. This strategy reinforced the operational focus on the core business of health and dental plans integrated with a proprietary care network.

A major milestone in Hapvida’s recent history was the business combination with Notre Dame Intermédica, announced in 2021 and completed in 2022 after unrestricted approval by the Administrative Council for Economic Defense (Cade). The transaction resulted in a large-scale national group which, in 2022, had 16.1 million health and dental beneficiaries and more than 68 thousand employees, with strong geographic complementarity and a broad portfolio of products and hospital structures. Since then, the company has been conducting a continuous process of operational and technological integration, including replacing management systems in units originating from Notre Dame Intermédica, with the aim of standardizing processes, capturing synergies and consolidating the verticalized model in all regions where it operates. In January 2023, the acquisition of the HB Saúde group in São José do Rio Preto (SP) further increased its presence in the countryside of São Paulo, adding new beneficiaries and hospital assets to the integrated platform.

Hapvida’s business model is based on operating medical and dental assistance plans under a verticalized structure, in which most care is provided through its own network of hospitals, clinics, emergency care units and diagnostic centers. On December 31, 2024, its own network comprised 86 hospitals with 7,535 beds, 352 medical centers, 77 emergency care units and 292 diagnostic imaging and lab collection units. The company also operates dental plans with nationwide coverage through an extensive accredited network of dentists. From an economic standpoint, Hapvida’s revenues predominantly come from health and dental insurance, which accounted for about 97% of net operating revenue in 2024, while direct provision of care services to third parties represented a minority share. The company’s shares, traded on B3 under the ticker HAPV3, reflect this profile of a supplemental health insurer with strong vertical integration along the care chain.

Within the medical assistance plan portfolio, Hapvida focuses on corporate and individual products, with several contracting formats. In December 2024, the health portfolio totaled approximately 8.9 million beneficiaries, distributed across categories such as group corporate plans, plans for small and medium-sized enterprises (SMEs), individual/family and group plans by membership. The plans are sold in 19 states and in the Federal District, with a preference for cities where the company has its own care infrastructure, especially in the case of individual/family plans. The commercial strategy combines an in-house sales force, brokers dedicated to larger companies and commercial representatives focused on retail and small businesses, as well as digital channels and call centers. In group plans by membership, the company operates in partnership with benefits administrators that provide administrative services to the contracting entities.

In dental plans, Hapvida operates in every Brazilian state through an accredited network, with no need for its own infrastructure. On December 31, 2024, the portfolio of dental-only plans totaled about 6.9 million beneficiaries, also highly diversified among corporate, SME, individual/family and membership contracts. The portfolio includes Prevention and Emergency coverage, mixed products with coinsurance for additional procedures, prepaid plans with full coverage of the mandatory list of procedures defined by the National Supplemental Health Agency (ANS), and plans with coverage beyond the list, including services such as orthodontics, orthotics and prosthetics. Management of the accredited network uses georeferencing technology to assess the adequacy of providers and support accreditation, training and relationships with dentists, seeking to optimize appointment utilization and proximity to beneficiaries.

Hapvida operates within Brazil’s supplemental healthcare sector, regulated by ANS, in a context where the national health system is organized between the public subsystem, represented by SUS, and the private subsystem, which covers about a quarter of the population with medical-hospital and dental plans. The company highlights its position among the largest operators by number of beneficiaries in both segments, with operations across Brazil’s five regions. Sector regulation influences aspects such as premium adjustments, minimum coverage standards, care network requirements, information transparency and monitoring of indicators such as loss ratio and complaint index. On December 31, 2024, Hapvida showed a relatively low General Complaint Index at ANS for its main insurer, indicating regulatory performance aligned with the standards monitored by the supervisory body.

From an operational and management perspective, Hapvida emphasizes clinical standardization practices, use of electronic medical records, data analytics, chronic patient management and systems integration between the insurer and the care network, focusing on cost control, waste reduction and monitoring of care quality. The company carries out user satisfaction surveys, such as the “5-Star Service” evaluation program, and has been investing in diagnostic technology projects, exemplified by the partnership with Roche Farmacêutica to implement a Technical Operational Center for laboratory diagnostics in Recife, aimed at centralization and scale gains in testing. In terms of geographic expansion, the company continues to assess opportunities to increase the verticalization rate in strategic regions, while adjusting its business portfolio through the divestment of non-core assets, reinforcing its focus on combining health and dental plans with an integrated proprietary and accredited network under a single platform.

Hapvida operates in an environment of growing relevance of private healthcare spending in Brazil, where premiums paid for health and dental plans have historically grown above GDP over the long term. The company seeks to position itself with a model that combines beneficiary scale, network reach and operational integration, supporting its presence in the supplemental healthcare market. HAPV3 shares, listed on B3, provide access to this set of operations, whose performance is directly linked to the company’s ability to manage healthcare risk, efficiently use its own network, control loss ratios and adapt to regulatory guidelines and the demographic and economic dynamics that influence demand for health and dental plans in the country.