PSSA3 Porto Seguro

Porto Seguro S.A. is a Brazilian holding company in the insurance and financial services sector, with common shares traded on B3, in the Novo Mercado segment, under the ticker PSSA3. Although the corporate structure as a holding company was formalized in 1997, the group’s operational origins date back to 1945, with the founding of Porto Seguro Companhia de Seguros Gerais in the city of São Paulo. Over its history, the company has undergone changes in control, portfolio expansion and acquisitions, consolidating itself as one of the largest insurance and related services groups in the country. From the 1970s onward, with Abrahão Garfinkel and his team joining management, the company strengthened its relationship with insurance brokers, which became a pillar of its business model. In 2004, the IPO marked Porto Seguro’s formal entry into the Brazilian capital markets, enabling broader access to funding and reinforcing its corporate governance.

Porto Seguro’s core activity is focused on offering insurance and risk management products, complemented by supplemental health operations, financial businesses and assistance services. The holding company coordinates several subsidiaries that operate in auto, property, life and personal accident insurance, as well as health and dental plans. The business model is based on risk underwriting, premium collection, formation of technical reserves and claims management, combined with service fees and financial income. From the 2000s onward, the company began to more actively develop financial products such as credit cards, financing, consortiums, open pension plans and capitalization bonds, seeking revenue diversification. The current structure is organized into four major business verticals – Insurance, Health, Bank and Services – which allow the company to operate in a segmented yet integrated way in the protection, services and financial markets.

In the Insurance vertical, which represents Porto Seguro’s main field of activity, auto, property and life insurance stand out. The most important product is auto insurance, which accounts for a significant share of insurance revenues and in which the company holds a relevant share of the Brazilian market, including operations under the Porto Seguro, Azul Seguros and, in partnership, Itaú Seguros de Auto e Residência brands. In addition to auto, the company offers homeowners, commercial, liability and other standard lines of insurance. In the Health vertical, the group operates through health insurance, dental plans and associated services, regulated by the National Supplemental Health Agency (ANS), focusing on supplemental health coverage for different customer profiles. The Bank vertical includes financial businesses regulated by the Central Bank of Brazil, especially credit cards, real estate and vehicle consortiums, capitalization bonds, pension products, and credit and financing operations, while the Services vertical comprises assistance and convenience solutions for cars, homes and businesses, such as towing, locksmith, electrical and plumbing maintenance.

Porto Seguro’s commercial operations are predominantly focused on the Brazilian market, with a complementary presence in Uruguay. Most of the group’s net revenue is generated in Brazil, while a smaller portion comes from insurance operations in the Uruguayan market, giving the company an essentially domestic profile. Within Brazil, the company has a widespread distribution and service network, supported by thousands of insurance brokers, assistance providers and suppliers of auto parts, automotive services and healthcare. The company also maintains cooperation agreements and partnerships, such as the long-standing agreement with Itaú Unibanco for the unification of part of their auto and homeowners insurance operations, as well as more recent initiatives in coinsurance and joint ventures, such as the partnership with Oncoclínicas in the area of cancer treatment. In 2024, Porto Saúde and Porto Serviço obtained publicly held company registration with the CVM, increasing the visibility and transparency of specific segments of the group.

Porto Seguro’s competitive position in the non-life insurance market is significant, with leading premium volume in certain segments, particularly auto insurance. In the Brazilian general insurance market, excluding health and pension, the company ranks among the largest in written premiums, operating in an environment with more than one hundred insurers supervised by Susep. In the supplemental health segment, it operates through health and dental plans in a highly regulated and competitive market, with operators of different sizes. In financial services, Porto Bank competes with banks, consortium administrators and credit card issuers, participating in specific niches such as vehicle and real estate consortiums, as well as the card market, where it has a moderate but complementary share within the insurance ecosystem. In assistance services, Porto Serviço operates in mobility and home assistance, competing with other 24-hour assistance companies and independent providers, focusing on synergies with the insurance portfolios.

Porto Seguro’s product distribution combines traditional and digital channels, with independent brokers playing a central role. Thousands of brokers sell auto, homeowners, property, health, dental and life insurance, as well as pension products and financial products such as credit cards and consortiums. The company also uses the banking channel to sell auto and homeowners insurance, mainly through its partnership with Itaú, as well as dedicated teams for consortiums and other products. Recent digitalization has led to the development of channels such as the SuperApp and intensive use of WhatsApp, through which assistance calls are made and a significant portion of customer interactions take place. The company also maintains a broad base of service providers, especially in the automotive and health areas, including repair shops, tow trucks, locksmiths, home maintenance technicians and medical-hospital service providers, forming an operational network that is essential for delivering coverage and assistance.

From a regulatory standpoint, Porto Seguro’s operations are subject to multiple layers of government supervision, depending on the type of activity. The group’s insurance, pension and capitalization companies are regulated and supervised by the Superintendence of Private Insurance (Susep), which sets rules for incorporation, operations, technical reserves and solvency. The health and dental plan companies are supervised by ANS and the National Supplemental Health Council, which define rules for coverage, price adjustments and service quality. Credit and financing activities, securities distribution and consortium administration are regulated by the Central Bank of Brazil, which imposes capital requirements, operating limits and conduct standards. The company also follows international accounting standards, having adopted IFRS 17 for insurance contract reporting, while maintaining parallel managerial information that preserves the historical comparability of results.

On environmental, social and governance (ESG) matters, Porto Seguro publishes information annually in its Sustainability Report and Management Report, structuring its disclosure based on standards such as IIRC/IFRS, GRI and SASB metrics specific to insurance, managed healthcare and consumer finance. The company is a signatory to the UN Global Compact and aligns its strategy with the Sustainable Development Goals considered material to the business. The group prepares a greenhouse gas emissions inventory following the GHG Protocol methodology, with data published in a public registry. In terms of governance and integrity, it has internal policies prohibiting contributions to political parties, candidates or public officials, as well as anti-corruption and confidentiality clauses in contracts with suppliers. The company states that it seeks to ensure that relevant environmental and health licenses for its activities and those of its suppliers are in order, and adopts supplier management practices based on technical, financial and reputational criteria. These initiatives add to its status as a listed company on the Novo Mercado, which entails higher corporate governance standards for PSSA3 shares traded on B3.

Porto Seguro’s recent trajectory includes initiatives focused on product innovation and insurance inclusion, such as the launch of subscription-based auto insurance, with specific brands targeting different customer profiles, and the expansion of digital and mobility services. During the Covid-19 pandemic, the “Meu Porto Seguro” program illustrated the group’s social role by creating temporary jobs and offering professional training for thousands of people. On the corporate front, the evolution of leadership, with the transition of the chairmanship from the Garfinkel family to a new generation, and the rebranding to “Porto,” accompanied by the reorganization into four business verticals, reflect a movement of structural adaptation and diversification within the insurance, health, services and financial markets. In this context, the company presents itself as an integrated group of protection and service solutions, with a primary focus on insurance but with a significant presence in adjacent segments that complement its business ecosystem.