Hello, good morning . Welcome to our virtual conference call to present the results of the fourth quarter of 2024. This conference call is being recorded, and you are now listening to the simultaneous interpretation into English. To listen to the audio in English, press the interpretation button at the lower right-hand side in your screen. This conference call is going to have two parts. In the first part, our CEO, André Haui, and our CFO, Rafael Sperendio, will share with you the results of 2024.
Then we are going to have a questions and answers session when analysts and investors will be able to ask questions. Our slide deck is available at our investor relations website at www.bbseguridade.com.br. Now I'm going to give the floor to André, who's going to start the presentation, and I will come after their presentations to moderate the Q&A session. André, please, the floor is yours.
[Foreign language]
Thank you, Felipe. Thank you, dear friends. First of all, I would like to thank everyone who joined us in our virtual conference call. It's a great enthusiasm and satisfaction for me to announce that our net income grew 9.5% in 2024, reaching the record of BRL 8.7 billion. Managerial profit, according to SUSEP, is BRL 8.2 billion, an increase of 5.7% compared to 2023. A very solid result, supported by the 11.9% growth in non-interest operating income, net of taxes, which more than offsets the drop in investment income. We continue with a very robust payout policy for our shareholders. In 2024, BRL 7.1 billion were allocated to the payment of dividends, in addition to BRL 1.2 billion used to share buybacks. In other words, between dividends and buybacks, more than BRL 8.3 billion were allocated to our shareholders in a payout of more than 95%.
We have BRL 17.5 billion in written premiums growing strongly in the most profitable lines. In Credit Life, the increase was 7.9%. According to data from SUSEP, until November, written premiums were more than 70% higher than the second place in the ranking. In rural lines, despite the challenging year, we managed to expand our market share to 63.6%, an increase of 21.2% in Farmer's Credit Life insurance and 28.1% in Rural Lien insurance. Our loss ratio closed the year at the lowest historical level of 23.7%, a result of a very robust underwriting and risk mitigation policy, which is the result of our reinsurance strategy. In our accumulation business' pension reserves expanded 9.4% in 12 months, reaching BRL 428.9 billion. Collection of premium bonds grew at 4.2%, totaling BRL 6.7 billion in 2024.
In our distribution business, the 10% growth in brokerage revenues was ensured both by commercial performance, including the sale of products that are not underwritten by our investees, and also by the recurrence and booking of revenues related to sales completed in previous years, especially in credit life insurance. In 2024, we continued to execute our strategy to evolve the use of technology and data to generate businesses and to improve the service to our customers. BRL 338 million were invested by all of the group's companies in IT infrastructure, cybersecurity, development of new products, and digital solutions. This investment has helped us to make important developments in our portfolio. In rural insurance lines, we are expanding our operations beyond traditional products, such as Crop Insurance, to be able to take advantage of all the opportunities of every business.
We have launched Livestock Lien at the beginning of last year, and we have already issued 511 million premiums, and our revenues grew 84%, almost BRL 650 million insurance premiums aimed at livestock market, which represents an important share of BB's rural credit lines. As I mentioned in the previous slide, farmer's credit life insurance had a significant growth of 21.2%. This increase was made possible by the conditions we implemented in the product, with an expansion of the amount insured and the age of our customers. In a strategy that aims to look at the customer throughout their life cycle, we sold more than 85,000 Personal Protection Insurance policies, which was launched in 2024.
This product is a life insurance with simplified coverages and more affordable prices, an important product to universalize access to insurance, creating long-term opportunities as customers develop their financial education and start to purchase more sophisticated products. In pension, we launched a product that allows us to offer the accrued balance in reserves as a collateral for credit operations. Important solutions that we developed in-house to provide liquidity to our customers to prevent them from accessing long-term services in the event of any momentary needs. In 2024 alone, more than BRL 800 million were given as collateral for credit operations. We also continue to advance in our distribution businesses. In 2024, BB Brokerage traded more than BRL 18.7 billion in insurance premiums.
It's important to work as a brokerage with sales of more than BRL 967 million for auto insurance premiums and BRL 153 million in large risk and transportation, with a focus on the BB's wholesale segment. In these years, we do not take part in any underwriting. To diversify our strategy, we issued more than BRL 2.1 billion premiums via partner channels, accounting for 12% of the total. In rural alone, it was BRL 1.3 billion contributing, with BRL 233 million to the result, a growth of 17%. Last but not least, we evolved in our performance in digital channels. In 2024, 180 new thousands were added to our customer base, and more than 915,000 sales were conducted. We raised more than BRL 900 million pension plans and reached 26% in premium premium bond sales carried out remotely through digital channels.
The economic performance that I have spoken to you is related to one of the most important pillars in our strategy, which is the customer at the center of our work. Our NPS remains consolidated within the quality zone and has evolved 4.7 points last year. The number of complaints has been dropping continuously, and in 2024, it was 15.2% lower than it was in 2023. The evolution of satisfaction levels is reflected in the permanence of customers evidenced by 17 reductions in churn in 12 months, and the level of protection of our customer base continues to evolve.
The number of super protected customers, which have more than four products, has grown 12.6%. So the differentiated benefits and service has reflected in an NPS at 11.9 points higher in 2024, and our relationship NPS is almost 12 points higher than that of our customers. Now I end my speech and give the floor to Rafael, who's going to continue giving you our financial details. I'll be back for our Q&A session. Thank you very much.
[Foreign language]
So thank you André. Now going to the details of our numbers for the year and the Q4, just reinforcing, stressing so our approach is always according to SUSEP's accounting standards, which is the basis for our booking and our financials. So BRL 2.8 billion, BRL 2.2 billion in Q4, growing 6% in both comparison bases, a very solid result, especially if we consider all the challenges with the investment income, not just the reduction of the Selic, the increase of the cost of liabilities in Brasilprev, with the defined benefit that is pegged to the IGP-M.
And then we had a deflation of 3% in IGP-M in 2023, in 2024, a high of 6%, and this had a direct impact also related to the interest rate that caused a negative effect. That's why the investment income dropped 13% year on year in Q4 and dropped 17% in the whole year numbers. So this is one of the smallest shares in our historical series.
Now, with a little bit more detail and breaking down our adjusted net income, so the profit has grown BRL 440 million related to the growth in operations, BRL 723 million, especially due to Brasilseg, not just because of the growth in sales during the business year, but also because of the booking of sales that were conducted in previous business years with an effect on brokerage revenues, and also offset by higher commission rates or commission fees, and then reduction of the crop insurance that helped to the overall composition of brokerage revenues. So we had a reduction in loss ratio in 2024 in all lines. There was a reduction in the loss ratio. Credit life has contributed a lot for the better results of the operation.
In terms of the net investment income, we had an operational growth, and that investment income takes BRL 284 million as compared to 2023, BRL 57 million growth coming, especially because of higher volume. We were able to offset the reduction in the Selic rate with higher volumes. On the other hand, the marking to market took out BRL 184 million of our bottom line in 2024, and in 2023, that number was positive by BRL 149 million. Now, going a little bit about the details per operation, first, the Brasilseg in terms of premiums written. There was a growth of 6% in Q4 coming, especially from an acceleration of the growth of rural lines growing 23% year on year in Q4 and a 2.2% growth of premiums for the whole year. Rural grew 4.1%, and half of the premiums written this 4.1.
So here we have the Rural Lien and also for individuals and small and middle-sized businesses, and then it dropped 40% because of the end of the product that we had for the credit letters, and then we decided to discontinue it in Q1 2024. So when we look at the quality of the operation, there is an overall improvement of the Combined Ratio coming, especially because of the drop in Loss Ratio, as I mentioned before. All the lines getting better, except for Credit Life. Credit Life has a few one-offs in 2024, especially in the reporting of claims that were. There was a backlog, and then we reviewed the basis and reported in the first and second quarters of 2024 and technical reserve surplus. So apart from that, it would have been flat. So here in pink, you are seeing the increase in commission fees.
This is related to our brokerage business, as I said before. Credit life has higher base commissions, and crop pays less. One goes down, the other one goes up, but in the end, it goes up. SG&A is almost flat. Net investment income dropped 2% in Q4, an 8% drop in the whole year, especially because of the drop in the Selic rate, which we could partially offset with volume, but not completely. Last, our net income grew 10% year on year, 10% in the whole year, better combined ratio, as I showed before, more than offsetting the results. Now, going to our pension business, 3% growth in collections in 2024, getting to BRL 59 million. In Q4, there was a 4% reduction year on year. In terms of net inflow, we can see flat redemptions, BRL 7 million net inflow in 2024.
There is a growth of our reserves of 9%. The concept and total, and then reserves of PGBL and VGBL in line with our management fees that grew 10% year on year in Q4, and also considering the whole year for 2024. Even though we observed a drop in management fees because of the mix, and so you can see here in the lower left-hand side, the reduction of multi-market funds in the total AUM as a consequence of reduction in the average rate because of risk aversion and more concentration in fixed income. There is a reduction in the management fee, but because of the increase of more business days in 2024, this was offset and revenues grew, which is very much in line with our growth in P&D reserves.
The efficiency of the operation improved in Q4 and also for the whole year, but the increase in revenues, management fees, and more efficient operations were not enough to offset the drop in investment income because of IGP-M. There was a deflation in 2023 and inflation in 2024 in Q4, so the impact was quite significant. We had a reduction of 72% in net investment income, and this explains the drop in the net income, dropping 27% quarter- on- quarter and 15% year if we compare the two years. premium bonds collection grew 4% quarter- on- quarter, a drop of 3% in our reserves because of a shortened term. There was a reduction in the last 12 months.
So lotteries paid. So we paid 19% draws in Q4 and 63% in the year, almost flat net investment income, almost flat reduction of the Selic rate, so partly offset by the reduction in TR for the year. So financial went up by 5% despite the 20 basis points drop in the financial margin because of the balance in financial investment. And then net income grew 1% year on year, 5% for the whole year. So for the whole year, it grew very much in line with the growth of the net investment income in Q4. It grew even though investment income dropped because of expenses, and this has been the main challenge in this operation. And we are trying to make it more efficient, and this is our challenge for the midterm.
Now, going to our brokerage business that grew 8% year on year, 10% for the whole year, especially because of the insurance operation, not just, as I said initially, because of sales of the current business year, but also because of the booking of sales that were conducted in the last three years, with brokerage fees being booked in 2024, when the year was BRL 6 billion. So quite relevant number of commissions that will be for the next years. Net margin is better, 1.1% year on year because of the mix and also higher investment income because of volume, and for the whole year, the margin is almost flat, an increase of 30 basis points. That's why the result is up a little bit higher than the growth in revenue. Now, going to talking about our 2024 guidance. So non-interest operating result, our range was 5 to 10.
We delivered a 10.7%, so exceed our guidance because of a lower loss ratio than we initially expected. This is an extremely good result because if we think the need to have additional reserves and coverage, we hadn't planned that. It was not planned, but despite this provisioning that had not been included in the projection, we could exceed the range of the guidance. In 2025, because of the most financial feature of this kind of coverage, it reflects the update rate plus inflation. In 2025, we are likely to reclassify this expense to investment expenses. Therefore, the constitution of additional reserves, it would have been 12%. Written premiums of Brasilseg is in the upper half, which was from 0%-3%. Pension plans reserves is our ranges from 8%-10%, 8%-12%, and we have 10 almost.
Now, for 2025, the guidance here, the only highlight is that in non-interest operating result, we reclassified the additional expenses for the provision of coverage as financial expense in Brasilprev. This is a difference. So the range is 3-8% of the operation for 2025. Written premiums [with] a growth of 2-7% and reserves of pension plans with a range 12-16%. This is what we expect for 2025. Now I end my presentation. Now I'm going to join André and Felipe for our questions and answers session. Thank you.
[Foreign language]
Now I'm going to give you a few instructions, just as a reminder if you want to ask a question . If you want to send us a question in writing, just click on the Q&A icon in the lower menu on your Zoom screen. As a reminder, we are going to have a list of questions. If we are not able to answer all of them, our investor relations team will get back to you after this conference call. So analysts and investors may also ask their questions in audio.
To do that, you need to click on the raise hand button at the lower menu on the screen, wait for your name to be called, and then you open your microphone. I think that we already have a few questions, so let's start. The first question comes from Jitendra from HSBC. Go, Jitendra, your question, please. You can unmute your microphone and ask your question, Jitendra.
Hi, good morning, everyone. Thank you for taking my questions and congrats on the results. I have two very quick questions. First, maybe on the premium growth. When we look towards 2025 in terms of written premium, how do you expect growth in 2025 across different product lines given the higher rate scenario in Brazil and some economic slowdown? So if you could just provide some numbers by product lines, that would be very helpful. And second, I just want to understand dynamics about gross written premium and net earned premium. So net earned premium have remained stable throughout 2024, while gross premium were volatile. So how these two lines could evolve in coming quarters going forward or for 2025?
Thank you. Hi, Jitendra. We're going to answer in Portuguese, right? [Foreign language]
It's related to the guidance of written premiums and what are our expectations for the different business lines? And also in a second question, it's the dynamics between retained and earned premiums? Vou começar por essa. So I'm going to start the second question first. So in terms of retained premium, it grew more strongly, especially because of the dynamics of risk mitigation that we adopt in our company, in our insurance company, Brasilseg. Crop insurance is a profitable product, but it has a certain volatility associated to it over the years. To reduce the volatility in our financials, we adopt a very conservative policy of reinsurance where we retain something like 24% of the premiums, and then the difference goes to a panel of reinsurance, and then we capture the commissions.
For the other business lines, as there is not so much volatility or loss ratio associated, so we do not cede premiums to reinsurance, but we have stop-loss clauses, so this is, in a nutshell, the strategy that we adopt for risk mitigation of our insurance portfolio. As in 2024, we had a very challenging year for the agribusiness. Our crop insurance, especially in the Custeio modality, is the one that dropped the most year on year, but it is more sensitive to premiums written. When we move to retained premium, it's only 24% is retained by the company. The sensitivity to retained premiums is higher, so the lines where we retain more that have grown more along 2024 with a highlight with Credit Life.
Also, in the agricultural or rural line, we have the farmers credit life insurance and Rural Lien, and then Life and Rural Lien have grown by two digits. That's why retained premiums grew more than written premiums because it's less sensitive to the performance of agricultural or crop insurance. Now, talking about 2025 as part of our growth, about 2%-7% growth, I would say that this year, if we compare to the business year of 2024, this year is something that I will call less predictable for the lines that are more dependent on credit. So the sensitivity of this range will be very much concentrated, especially in Credit Life and Rural Insurance. So if it's better than expected, we get to the top. If it's smaller than expected, we are going to move towards the floor of the guidance.
For the other lines, life, residential, corporate, they're under-penetrated lines in our base, in our customer base. These are lines that we are going to try and drive them to grow, to grow to the top or above the range of the guidance, but those are lines that have a smaller share of our portfolio as a whole. Now, Credit Life, we have a few important drivers. So there is everything that we've been talking a lot about. And then there is a new product. So we have the payroll loan, and then we have a new product in March that will help, but we still have an environment thinking of interest rate that is not so favorable as we used to have in the beginning of last year when we were expecting rates to go down with a much more favorable environment for Credit Life.
Rural insurance has its own unique dynamics. For 2025, differently from 2024, we are more optimistic for lines that are not really related to credit, but a little bit more uncertainty in the lines whose performance is more related to credit origination by Banco do Brasil. Thank you, Jitendra, for your question. Our next question comes from Tiago Binsfeld from Goldman Sachs. Good morning, Tiago. You may open your microphone and ask your question. Good morning, André, Rafael, and Felipe. I have a question about the investment income to understand your expectations for 2021. Now I'm looking at page 7 of your presentation. There was a drop in 2024 of BRL 280 million. Of course, there are lots of uncertainties in the year that lies ahead, things you can't control, mark to market, time mismatch.
But what do you think of the share of the share investment income to the profit, thinking of the next months in the operational performance? We had 550 million BRL, which is in your operational guidance. So maybe the investment income would have something related to that. Could you give us some color about the numbers to help us think about that? Thank you for the question, Tiago. Well, the investment income, you were right about a few of the points that impacted 2024 that we think are not going to be as relevant in 2025. So breaking down all the components, I'm going to focus on a portfolio that is related to P&L and this between operational and financial. I'm going to focus on the share that is in our financials.
Number one, last year, as you said correctly, and this is in our presentation, we had a net loss of BRL 184 million because of marking to market. So a relevant share took place at the end of last year because of the opening of the interest rate curve, especially because the portfolio that we have in Brasilprev as an asset to back up our liabilities here related to operations. Most of it is linked to the inflation with long- and medium-term. So of the BRL 184 million that we have here because of the company after income tax, there is an asymmetry today. I would say the likelihood for 2024 is higher, 2025 is higher in terms of positive marking or not having any marking than what happened last year. So in the conservative scenario, we are no longer going to have marking to market negative.
The curve will be flat as compared to December, which is not true because it has already closed from December until now so we already have positive marking in Q1 so just here, we would have 184 million BRL additional in the investment income. In the post-fixed share, on the other hand, it's quite simple math. It didn't change the assumption that we have 100 basis of Selic is equivalent to 100 million BRL profit so it depends on your Selic assumptions. If we think the Selic, we think of the curve, we would have something like five points of increase in the average Selic, so four points of increase in average Selic equivalent to 400 million BRL, roughly but it depends on your assumptions using what is implicit in the interest rate curve.
It's an increase of almost four points, BRL 400 million but BRL 184 million, assuming that there is no negative marking to market. We would have something like BRL 584 million in the investment income of additional results in 2025. Perfeito. Great, thank you very much, Rafael. A próxima pergunta, ela.
Our next question comes from Kaio Prato from UBS BB. Good morning, Kaio. You may ask your question.
[Foreign Language}
Good morning, Felipe and André. Thank you very much for the opportunity. I have two questions to ask. The first one is also related to the guidance, but this is more operational. Como é que está esse crescimento do resultado? Gives us more color in terms of the increase of the bottom line per business line and what is the expected loss ratio for rural insurance. And you had a very positive performance in 2024. And then I will ask you a second question.
[Foreign Language]
As for the question, well, the assumptions are in the operational result. The two are in the guidance. So the growth in reserves at Brasilprev. What is missing there to close is the issue of loss ratio, which is your question. In 2025, what happens is we closed the historical low of loss ratio in crop and rural insurance. So it's difficult to assume, as I said, the answer to the first question because crop insurance has considerable volatility. So when we look at the context, the current context in terms of climate projection, and of course, this changes rather frequently, but today, for the business year of 2025, in Q1, there will be a predominance of La Niña, and then it will be mitigated in Q2.
We are going to have a predominance of neutrality after Q2 towards the end of the year, which is a very favorable scenario. This La Niña scenario, we already have the February numbers, and we monitor this every day. What we need to see is a lower frequency of notices as compared to last year, but faster, especially in Mato Grosso do Sul and Rio Grande do Sul. Once again, this is higher than historical low that took place last year. If I compare 2023, and then things change, well, the dynamics changes because what we are seeing this year, an increase in January and a downwards trend in February. In 2023, we saw it going up January, February, and March. What can we say? We are still very much in the beginning of the year to know the trends.
But in principle, it looks like loss ratio will be between what we saw in 2024 and what we saw in 2023. We are not worried about it. This is normal, but we cannot assume that it will remain at a historical low for two years in a row. So this is more or less our prospects for loss ratio for crop insurance. For the other lines, we are working with the improvement for Home Insurance, which is not very relevant. And for the most relevant, we are seeing an improvement in credit life. And there were some one-offs, as I said, for credit life, especially in 2024. There were some one-off events that we hope will not happen again in 2025. And these would be the main highlights for the other modalities. We are not expecting any significant variation in the loss ratio in 2025. Very good, thank you.
Second question about investment income. Just a quick follow-up on Tiago's question. Now, looking into pensions after the resolution that impacted your redemptions along 2024, just remind us of the mismatch between IGP-M and IPCA rates now as compared to how it was in the beginning of the year. I think you reduced this mismatch a lot. Well, this is true. The mismatch has gone down in terms of the indexes. Today, it's something like 90% matched. So this reduced a lot. So before the resolution, it was something like 75%. Great, thank you. Obrigado pela pergunta, Kaio. So the next question, Kaio,
Our next question comes from Antonio Ruíz from the Bank of America. Antonio, you may open your microphone and ask your question.
[Foreign language]
Good morning, everyone. Thank you so much for your time, and congratulations on the results. I have two questions. So I think it's clear that the growth in premiums depends very much on credit origination for next year, and this is incorporated in the guidance. Just taking a step further, it is penetration capacity in originated credit. So could you explore the main lines that would be rural and credit life? So how the penetration in originated credit, how this has evolved, and what are the main drivers for 2025?
And a follow-up of something you've touched on. It is about the private payroll-backed loans. So what is the ratio between insurance and the payroll-backed loans?
[Foreign language]
No, giving you a little bit more detail about penetration. For the small and micro businesses, we have working capital penetration still very low. So I'm going to talk about credit life first and then rural. For individuals, we already have quite a high penetration. It has gone down slightly as compared to last year, which is normal in an environment of rising interest rates. So credit life in this context has a more difficult penetration. It has gone down, but not a lot. It's just a little bit. But this is a more mature portfolio in terms of penetration, and this is a product that has been available in our portfolio for slightly more than 10 years, so a much more mature portfolio. So for small businesses, we have some more room to improve penetration in rural. A penetration of insurance in Brazil as a whole is very low.
My memory may be betraying me, but it has gone all the way to 15% about two years ago. But penetration has gone down to 10% of the planted area in Brazil is protected by crop insurance. Very low level if we compare to more developed economies. Using the U.S. as a reference, penetration is like 80% of the planted area, which is much more relevant than we have here in Brazil. Not just talking about grain, but we migrate to livestock, which is extremely relevant, has an extremely relevant share in our credit lines. We explore it very little. We had a livestock product. We've been testing it. Of course, we do not master it as much as we master grains, but we've been testing it since 2018, 2019.
Now it has become slightly more relevant in 2024, and we are going to continue expanding in 2025 since it's a very healthy portfolio with very good loss ratios, and we are confident to escalate it, and also our Livestock Lien that was relevant in 2024 for the composition of premium. Yes, there is an opportunity in the segment of grains, but the whole agriculture industry is going through a rebalancing of supply and demand both on the side of price, so the price of inputs and commodities, and after this period of adjustment, we have a more optimistic stance for 2025, and once this happens, we will be able to increase penetration again as we saw happening two years ago and in livestock, which is very much underexplored and is very important for Banco do Brasil.
It's been increasing along years, but this is where lies the greatest opportunity if we look in the mid and long term.
Thank you, Antonio, for your question. Our next question comes from Daniel Vaz from Banco Safra. Daniel, you may ask your question.
[Foreign language]
I would like to revisit what Rafael said in terms of risk retention in crop insurance. This might unlock some gains in terms of premiums written to retained premiums. Have you been discussing this in terms of your risk policy? Se tem alguma evolução na discussão da renegociação. Any evolution in terms of renegotiation of the contract with Banco do Brasil? So can any new developments, anything happened in the meantime that you could share with us?
[Foreign Language]
I'm going to answer the two questions. In terms of reinsurance, obviously, this is assessed at the level of the company, Brasilseg, that has the contracts, and this is done year on year, and looking at the loss ratio and risk appetite, obviously, we change the level by two percentage points, but we are going to take a look at that year on year. We think there is room for more players in our panel. There is a risk appetite of local and international reinsurance companies, and of course, it depends very much on how much commissions are that is the commissions that are available, so yes, we are looking at that in the company as board members and as part of the company's financial committee, so we look at the scenario every year. This year, we are going to review that again and decide whether it makes sense.
As to the contracts, as BB Seguridade, the company belongs to Banco do Brasil. We are going to continue existing. This is not a taboo. We are still talking to the bank. We think the time for us to sit down and design anything has not arrived yet because we still have a long time for the contracts with our partners in investees. So at the right time, we're going to sit down and talk, but obviously, we're examining, reviewing it. We understand it, and we want to extract as much value as possible in the bank to be rewarded by what we are using. Thank you very much. Thank you, Daniel.
[Foreign language]
Our next question comes from Guilherme Grespan from JP Morgan. Guilherme, you may ask your question.
[Foreign language]
Thank you so much for the presentation. I have two questions. One about new products. I still have one question and follow-up to Antonio's question. He asked about the private payroll loan. So your credit life for the private or public payroll loans, the penetration is the same. So also for the Consortium that you're going to relaunch the credit letters. So you had some difficulty in terms of profitability of the product over the last few years. I imagine that insurance is more about distribution than about pricing, and there is a pool. If you fit the product in a distribution of the Consortium, the credit letters of Banco do Brasil would be a very good pool for you to capture.
So what are you changing in the product, and how do you think about the revamping that you're thinking for 2025? So buyback, there was a zero which got my attention, and you finalized with 87%. So what is your Buyback mindset? I thought that you were going to favor more buyback in the margin, but the zero buyback in the quarter got my attention.
[Foreign language]
I think I can answer about buyback. Guilherme, thank you for the question. Rafael is going to start by the last one, and then I will talk about the credit life.
[Foreign language]
Well, as to buyback operation, Grespan, we have BRL 1.2 billion. It's an irrelevant volume. The program was almost fully executed, and there are a few limitations in its execution. For example, the cash available today in Seguridade has a reduced PL, and the distribution capacity is the beginning of the quarters. So we have executed as much as possible. The cash available and the buyback program has an impact in the capital of Banco do Brasil, and we need to take that into account. We ended it.
Se tem uma definição com relação a essa. If there is a definition in terms of the allocation of this in the treasury, and this is in a short time span. Posso vir aqui para responder à do consórcio. Guilherme, o que era o prestado? So a product that used to be offered to BB Consortium, it was a corporate product. It was an insurance for the portfolio. So we stopped this insurance. Now we have a direct insurance for the customer that is taking up the consortium that is buying it. And so there is a credit life built there, and we see very good opportunities there. As to the penetration of the payroll loan insurance, we need to see that number better, considering public and private, but its penetration in credit life as a whole is 20%-25% of our potential audience.
There's a lot of room to grow. This is a new product. It's a new credit modality, so we think we have a lot of space to explore there.
[Foreign language]
Just a quick follow-up. The BRL 500 million opportunity in Consortium is this profit.
[Foreign language]
This is premium.
[Foreign language]
Thank you, Guilherme. Our question comes from Arnon Shirazi from Citibank. Good morning, Arnon.
[Foreign language]
Good morning. For the opportunity of asking the question. My question is about your basis scenario and guidance. Just to understand your IGP-M and Selic assumptions for the year.
[Foreign language]
Arnon, thank you for your question. In terms of assumptions that we use.
Selic between 14%-15% within that range. Of course, we define scenarios and we define likelihood. So we are working with Selic within that range along 2025. And IGP-M and IPCA between 4%-5.5%. These are the ranges that we stressed to converge both for impacting reserves and impacting our operational result and the pricing component in terms of written premiums.
[Foreign language]
Our next question comes from Eduardo Nishio from Genial Investimentos. Nishio, you may ask your questions.
[Foreign language]
Good morning. Everyone. André, Sperendio and Felipe. I have two questions. The first one is about your loss ratio. You had a very strong good year . What are your prospects of loss ratio? Especially for crop insurance that had a very good performance this year. How did you include your expectations? Not just overall, but also agricultural and rural. Question number two. Regards to pensions. So with the guidance, If it was negative in Q4, in terms of inflow, how much do you include in terms of net inflow? Do you expect an improvement as compared to 2024?
[Foreign language]
Good morning, Nishio. Thank you for your question. As to loss ratio of crop. We are expecting it to be higher than 24, but once again, anything . That we are worried about because our comparison basis is the lowest level in our historical series. We are seeing the climate transition along with a predominance of La Niña and with an impact where we have a relevant exposure in Mato Grosso do Sul and Rio Grande do Sul. We are seeing more severity in claims, but impact was very much concentrated in January, but we are not worried about it. At first, it's not even close to what we saw in 2022. Today, with the numbers that we are observing, it will be something between 24 and 23. What happened in those two years? This is what we've been seeing, but it's still too early for us to explore any kind of trend. These are our expectations. In principle, today, according to our climate expectations, until the end of the business year, we are expecting something neutral for the next few months.
We are not going to have any big surprises along the year, except if those projections do not prove to be accurate. But this is what we expect today. And as to the growth in reserves, pension reserves, we are working with a range that we have defined. So at the floor, there is an outflow of funds if there is some stress or deterioration of the environment. So we need to contemplate that within the range and along the business year. We might review, but today, as we are very much in the beginning of the year, we need to forecast adverse scenarios. So we expect outflow of funds, and from the middle to the end, we expect net inflow of funds. But I would say that today, considering the current scenario, there's a little bit more less volatility.
We are likely to have a more favorable year, except there is a deterioration, but this is not our assumption today.
[Foreign language]
Great. Thank you very much. Just a follow-up. As to the loss ratio, overall. Do you see that rate flat or slightly worse in 2024? Overall.
[Foreign language]
We talked about crop, but so it's likely to increase marginally because we work with prospects of increase in crop, but on the other hand, there is a reduction in credit life and home insurance. So the combination of all of this will lead to a loss ratio that will be marginally higher.
[Foreign language]
Thank you. Congratulations on your performance.
[Foreign lagnuage]
Our next question comes from Marcelo Mizrahi from Bradesco. Marcelo, please open your microphone, please.
[Foreign language]
Hello, everyone. Good morning. Congratulations on the performance. It's a pleasure to be here. About life insurance, in last year's performance, it's slightly smaller. And when we think about the dynamics, what is getting better and worse? What is your expectation for the products? The product changed in terms of mix and everything and pricing. How much growth do you expect in terms of the writing of life insurance, in terms of loss ratio, as a follow-on to Nishio's question? You said that we should think that loss ratio is going to have a slight increase year on year. It's difficult once we get numbers and we take a look and we look at rural insurance at the levels that you mentioned. So the consolidated loss ratio is unlikely to get worse.
Do you see any higher numbers in life maybe to get to the higher consolidated loss ratio? And lastly, about pension, the question is, do you think that 2025 can be a year of positive net inflows? Are you doing anything different in the product profile and higher interest rates or not? Do you think this is more the seasonality? Então, o final do ano, né? É isso aí o nosso lar. And this is what we had to say.
[Foreign language]
Thank you, Mizrahi, for your question. And congratulations on the sell side. I'm going to start addressing the first one, and then I have three questions. If I forget something, please remind me. For life, we are working with a more favorable environment in 2025 than in 2024.
We have the co-insurance that had a negative impact, and for the first half as a whole, for the life product was a difficult six months. So this is an old portfolio, so it's still adjusted by the
IGP-M accounts for 80%. So when IGP-M is negative, we do not transfer price adjustments. So the policies that matured along the first half of the year had no price adjustments. So only the policies that matured along the six months were adjusted. So inflation in the first half of last year had a negative impact in the issuance of premium in 2025, which is a scenario that we do not expect to repeat in terms of the writing of premiums in 2025. And this is a natural dynamic that takes place in the company.
When we have a more favorable environment for credit life origination, the network is going to focus as much as possible on credit life, which is a simpler product and approach than life, pure life. So when the situation reverses, and if this happens in 2025, there will be an acceleration in the growth of life insurance, even stronger than what we are expecting. But I can tell you that within the range of the guidance today, according to our assumptions, we think that it's going to grow from the middle onwards. As to the loss ratio as a whole, so crop is worse, credit life gets better, home insurance gets better, but the improvement in credit life is not enough to offset the increase that we are expecting in rural insurance. That's why the loss ratio is likely to go up a little bit.
It's not a relevant increase, but we are talking about the historical floor with a slight increase in 2025, and for pension, today, the scenario that we are working with, so we have unemployment at a historical low, the interest rate curve with less volatility. What really influences inflow is the income available, and sometimes customers panic when they see an atypical oscillation in terms of return, so this happened a little bit along 2024, especially towards the end of the year, so we took out risk from the funds along last year, and today we are having a much more conservative management to take out volatility so as not to scare customers, so it will not have the same impact as in 2024 in our expectations.
Looking into the two-digit Selic scenario for 2025, less volatility curve and unemployment at a historical low, it favors that our base scenario that is optimistic. We have positive net inflow, but I do not have a specific guidance for the net inflow.
[Foreign language]
Can I follow up? Ask a follow-up. Average administration fees slightly lowered this quarter, and you say this profile of less risk with the portfolios with less risk. So products with a lower risk, would there be an impact in admin fees in 2025?
[Foreign language]
Yes, there is, and we hope that this trend remains flat, what we saw in the last few years. Rate is less than BRL 1 billion per quarter.
[Foreign language]
Thank you. Obrigado, Mizrahi. Thank you, Mizrahi. We have another question from Pedro Leduc from Itaú BBA. Good morning, Pedro. You may ask your question. I promise to be brief.
[Foreign language]
In terms of premiums written, we have the guidance in 2024 it follows credit origination at BB with credit with different dynamics between different credit lines. So how do you see the mix, the final combination within crop insurance and farmer's credit life insurance and rural lien? What is the final makeup?
[Foreign language]
So just as a reminder of what happened in 2024, yes, it was a little bit difficult for the agricultural products because of the whole scenario, and we were able to offset the deficit, so to speak, by opening new lines. As I said, we have livestock lien and livestock insurance related to collateral credit collateral, and we increased the insured amounts for the farmer's credit life insurance. So we could work around the difficulties that we had in the agricultural or rural front.
Compared to the portfolio of the bank, but the relationship between the products that we have in the portfolio and the bank credit lines. So for consortium, we can go in with crop insurance and farmers credit Life Insurance depending on the collateral that is given for the lien. For investment lines, then we can go in with lien and life. And for commercial lines, life and sometimes lien. So there is a common point between the six lines. So farmers credit life Insurance, we can work for the three. When one of them is difficult, we can always resort to farmers credit life Insurance. And this is an extremely important and relevant product for farmers, especially during the pandemic. BRL 1.3 billion, I can't remember the exact number, were paid during the pandemic. More than half were for farmers that had the f armers credit life Insurance.
So this ended up helping a lot many families who dependef on farmers, on the farming business. For 2025, of course, our comparison basis is more difficult for the growth of rural lien and farmer's credit life insurance. So the dynamic today in the buildup of premiums written, we are going to see a slowdown of the growth in lien and a recovery of crop insurance. This is the scenario.
[Foreign language]
Excelent. Thank you very much.
[Foreign language]
We have no more questions on the line to be asked by audio, and we answered all the questions that had been asked to us in writing. So now we end the conference call for the fourth quarter of 2024. As a reminder, at the end, we have a satisfaction survey. We kindly request you to answer it, and thank you for that. Now I'm going to give the floor to André and Rafael for their closing remarks.
[Foreign language]
I would just like to thank you and say that I am available, I and the entire investor relations team, to answer any questions that we might not have answered now. So first of all, I would like to thank our customers, our investors, and I would like to emphasize the quality of our team that is very technical and that made possible this performance with exponential growth in this company. Thank you so much for your trust and hope to see you next quarter. Thank you very much and see you soon.