PSSA3

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 its corporate structure as a holding company was formalized in 1997, the group’s operating origins date back to 1945, with the founding of Porto Seguro Companhia de Seguros Gerais in the city of São Paulo. Over the course of 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. Starting in the 1970s, with the entry of Abrahão Garfinkel and his team into management, the company strengthened its relationship with insurance brokers, which became a pillar of its business model. In 2004, its IPO marked Porto Seguro’s formal entry into the Brazilian capital markets, allowing broader access to funding and reinforcing its corporate governance.

Porto Seguro’s main activity is focused on offering insurance and risk management products, complemented by supplementary health operations, financial businesses, and assistance services. The holding company coordinates various subsidiaries that operate in auto, property, life, and personal accident insurance, as well as health and dental. The business model is based on risk underwriting, premium collection, the formation of technical reserves, and claims management, combined with service and financial income. From the 2000s onward, the company began to more intensively develop financial products such as credit cards, financing, consórcios (installment purchase plans), 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 core business, auto, property, and life insurance stand out. The most significant product is auto insurance, which accounts for a large share of insurance revenue and in which the company holds a relevant share of the Brazilian market, including operations under the Porto Seguro and Azul Seguros brands and, in partnership, Itaú Seguros de Auto e Residência. In addition to auto insurance, the company offers residential, business, liability, and other general lines. In the Health vertical, the group operates through health insurance, dental plans, and associated services, regulated by the National Supplementary Health Agency (ANS), focusing on supplementary health coverage for different customer profiles. The Bank vertical encompasses financial businesses regulated by the Central Bank of Brazil, with emphasis on credit cards, real estate and vehicle consórcios, capitalization bonds, pension products, and credit and financing operations, while the Services vertical covers assistance and convenience solutions for automobiles, homes, and businesses, such as towing, locksmith services, and 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 wide distribution and service network, supported by thousands of insurance brokers, assistance providers, and suppliers of automotive and healthcare parts and services. The company also maintains cooperation agreements and partnerships, such as the historic agreement with Itaú Unibanco to combine part of the auto and home insurance operations, as well as more recent initiatives in coinsurance and joint ventures, exemplified by the partnership with Oncoclínicas in oncology treatments. In 2024, Porto Saúde and Porto Serviço obtained public company registrations with the CVM, increasing the visibility and transparency of specific segments of the group.

Porto Seguro’s competitive positioning in the non-life insurance market is significant, with leading premium volumes in certain segments, especially auto. In the Brazilian general insurance market, excluding health and pension, the company ranks among the largest in terms of written premiums, operating in an environment with more than one hundred insurers supervised by Susep. In the supplementary health segment, it operates through health and dental plans in a highly regulated and competitive market with operators of various sizes. In financial businesses, Porto Bank competes with banks, consórcio administrators, and credit card issuers, participating in specific niches such as vehicle and real estate consórcios, as well as the card market, where it has a moderate but complementary presence 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 its insurance portfolios.

Porto Seguro’s product distribution combines traditional and digital channels, with independent brokers playing a central role. Thousands of brokers sell auto, home, property, health, dental, and life insurance, as well as pension and financial products such as credit cards and consórcios. The company also uses the banking channel to sell auto and home insurance, especially through its partnership with Itaú, as well as in-house teams for consórcios 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 and a significant portion of customer interactions are carried out. The company also maintains a large base of service providers, especially in the automotive and health areas, including repair shops, tow trucks, locksmiths, home maintenance technicians, and medical and hospital providers, which forms an operational network essential for delivering its coverages and assistance services.

From a regulatory standpoint, Porto Seguro’s operations are subject to multiple layers of governmental 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 provisions, and solvency. The health and dental plan companies are supervised by ANS and the National Supplementary Health Council, which define rules on coverage, price adjustments, and service quality. Credit, financing, securities distribution, and consórcio administration activities 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 reporting insurance contracts, while maintaining parallel management information that preserves historical comparability of results.

On environmental, social, and governance (ESG) matters, Porto Seguro discloses information annually in its Sustainability Report and Management Report, structuring its communication based on frameworks 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 an inventory of greenhouse gas emissions following the GHG Protocol methodology, with data published in a public registry. In terms of governance and integrity, there are internal policies that prohibit contributions to political parties, candidates, or public officials, as well as anti-corruption and confidentiality clauses in supplier contracts. The company states that it seeks to ensure the validity of environmental and health licenses relevant to its activities and those of its suppliers, in addition to adopting supplier management practices based on technical, financial, and reputational criteria. These initiatives are complemented by its status as a public company listed on the Novo Mercado, which presupposes higher corporate governance standards for the 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 engagement by creating temporary jobs and offering professional training to thousands of people. On the corporate front, changes in leadership, with the transition of the chairmanship from the Garfinkel family to a new generation, and the brand repositioning to “Porto,” accompanied by the reorganization into four business verticals, reflect a 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 relevant presence in adjacent segments that complement its business ecosystem.