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Sul América Q4'17 profit rises 31.2% on robust operating revenues

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Sul América Q4'17 profit rises 31.2% on robust operating revenues

Sul América SA posted a 31.2% increase in its profit for the fourth quarter of 2017 as a robust result from its health and dental segment countered a decline in investment income.

The Brazilian insurer showed net income after noncontrolling interest of 412.7 million Brazilian reais for the three-month period, up from 314.7 million reais earned a year earlier. Earnings per share in the quarter also ticked up to 1.09 reais from 94 centavos a year ago.

The result came as the company's operating revenues hit 4.58 billion reais in the quarter, up 13.6% from 4.04 billion reais in the year-ago period.

The insurer's health and dental segment, a key earner for the company, jumped 14.2% year over year to 3.60 billion reais. This gain offset a 14.2% drop in other operating revenues, which totaled 234.3 million reais in the fourth quarter.

Meanwhile, the automobile segment grew 11.4% to 828.6 million reais while the other property and casualty area advanced 33.4% to 60.0 million reais. Results for the quarter also included 179.3 million reais of investment income, down 34.3% from a year earlier.

Earned premiums for the period totaled 4.58 billion reais, up 10.2% year over year. The company's combined ratio moved to 92.4% from 97.0% in the prior-year period.

Sul América said that its recurring return on average equity reached 14.5% in the quarter, down from 14.7% in the earlier year.

For full year 2017, the insurer recorded net income after noncontrolling interest of 773.3 million reais, up 11.2% from 695.3 million reais a year ago.

As of Feb. 26, US$1 was equivalent to 3.24 Brazilian reais.