SAO PAULO, Aug 5 (Reuters) - Porto Seguro SA, Brazil’s largest independent insurer, reported a second-quarter profit in line with analyst expectations after financial income rose.
In a securities filing on Tuesday, the São Paulo-based company said recurring net income, or profit excluding one-time items, came in at 219 million reais ($96 million) in the quarter, compared with 218 million reais in a Reuters poll of five analysts.
Shares rose 1 percent in early Tuesday trading.
Underwritten premiums rose 12.4 percent on an annual basis, totaling 3.04 billion reais. Higher interest rates helped Porto Seguro earn 226 million reais in equity income, or 91.7 percent more than a year earlier. Porto Seguro’s combined ratio, which measures the profitability of an insurer’s core business, rose to 95.9 percent, or 1.4 percentage point more than a year earlier. A gain in the combined ratio means that the profitability of the insurance unit eroded.
Recurring return on equity, a broader gauge of profitability, remained fairly stable at 18.1 percent in the quarter. ($1 = 2.27 Brazilian reais)