Sul América SA's net profit for the second quarter of 2017 slid 35.9% year over year on the back of weaker investment income and lower revenues from its automobile operations.
The company booked net income of 81.5 million Brazilian reais in the second quarter, down from 127.1 million reais in the year-ago period. Net income per unit came to 21 centavos, declining 44.9% from 38 centavos a year ago.
Operating revenues for the quarter grew 5.6% annually to reach 4.18 billion reais. The results were mostly buoyed by the company's health and dental component, which grew 9.8% to 3.30 billion reais, and a 21.2% increase in the other property and casualty segment, hitting 44.7 million reais.
However, these were offset by an 11.0% contraction in the automobile segment, which came to 724.0 million reais in the quarter.
Other operating revenues, which include those from private pension, savings bonds and asset management, grew 6.3% to 178.1 million reais.
Meanwhile, investment income dropped 8.5% to 212.6 million reais from 232.3 million reais a year ago.
Earned premiums rose to 4.27 billion reais in the quarter from 3.97 billion reais in the previous year. The company's combined ratio ticked to 102.9% from 101.3%, although it booked increased loss ratios in the health and dental, automobile and life and personal accident segments.
The company's net margin also dropped to 1.8% in the second quarter from 3.1% a year ago. Following the same trend, recurring return on average equity weakened to 13.5% from 15.5%.
As of Aug. 2, US$1 was equivalent to 3.13 Brazilian reais.