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A MetLife (METB34)an American multinational in the insurancereached the milestone of R$4.8 billion in total assets in Brazil in 2023. The company ended the year with R$135.3 million in net profit, R$2.1 billion in revenue obtained in insurance premiums and a accident rate of 36.1%.
In this scenario, the insurer recorded growth of 38% in 2023 compared to 2022, outperforming the sector four times. According to data from Susep (Superintendence of Private Insurance) and FenaPrevi (National Federation of Private Pensions and Life), the Brazilian insurance market raised R$388.03 billion in 2023, a growth of 9%.
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In an interview with Money TimesMarcelo Tomei, commercial vice president of MetLife Brazil, highlighted that the company has more than 100 million customers around the world and values solidity, which is its asset in the market.
“We have a very strong purpose that we bring to Brazil, which is the objective of expanding people’s access to insurance, mainly transforming life insurance and dental plans into much more accessible products, thinking about the importance it has for planning financial situation in the most diverse moments of people’s lives”.
For this year, Tomei comments that a growth of over 17% in premiums is expected, driven by a recovery in credit and, as a result, the credit life and credit insurance segments are boosting this number.
Despite not being listed directly on the Brazilian Stock Exchange, which in the sector has names such as BB Security (BBSE3), Porto Seguro (PSSA3) e Safe deposit box (CXSE3)the company is listed on the New York Stock Exchange (Nyse), where it accumulates an increase of more than 21% in the year, under the ticker MET and has unsponsored BDRs traded on B3, with the code METB34.
The pandemic effect
Marcelo Tomei highlights that the pandemic Covid-19which brought the world to a standstill in 2020, raised two major concerns among many people: everyday risks and succession. MetLife's balance sheet for 2023 shows that there was significant growth in life insurance premiums written, 14% in 2021 compared to 2020, 39% in 2022 compared to the previous year and 33% in 2023 compared to 2022.
“After the pandemic, there was a large number of inventories in Brazil that were, for example, under discussion due to lack of resources to pay taxes due, because the family has assets, but often lacks liquidity”, he explains.
“When you have assets, when the family or company needs succession, life insurance is a fundamental tool because it does not go into probate. The beneficiary is the one who will receive the life insurance compensation, and there is also no tax liability”, he adds.
The executive also comments that, in the pandemic scenario, the attention and concern of individuals with illnesses, absence from work, hospitalization, among other aspects, grew, boosting the market and directing MetLife's focus to meet the demands that arose.
Added to this, the needs highlighted during the period provided progress in the demystification of life insurance as a “death certificate”, placing it in the position of a resource for various situations, such as serious illnesses, temporary incapacitation, among other contexts that guarantee insurance. in life.
Insurance before investments?
Tomei argues that life insurance should be the first step in any financial planning, even if it is not of high value, but provides short-term protection.
He also points out that, a Datafolha survey released in December 2023, shows that almost 70% of Brazilians do not have an emergency reserve, a resource linked to financial planning. In this sense, he states that countries where there is a greater “insurance culture” are where there is greater knowledge and application of this planning.
“So, for example, in a country like the United States, when starting financial planning, the first aspect that is mentioned is life insurance. It happens before the financial planning begins, before the investment, because it is what will guarantee that your plan will work if something happens”.
In addition to protection, the MetLife executive reiterates that, with the construction of large assets, life insurance can be a way to provide liquidity in succession processes.