Good afternoon, ladies and gentlemen. Welcome to Caixa Seguridade's video conference to discuss the results for the Q2 of 2023. This video conference is being recorded, and the replay can be accessed on the company's website, ri.caixaseguridade.com.br. The presentation is also available for download. We inform you that all participants will be watching the video conference during the presentation, then we will start the Q&A session when further instructions will be provided. Before proceeding, I would like to reinforce that the forward-looking statements are based on the beliefs and assumptions of Caixa Seguridade's management and the current information available to the company. The statements may involve risks and uncertainties as they relate to future events, therefore depend on circumstances that may or may not occur.
Investors, analysts, and journalists should be aware that events related to the macroeconomic environment, the industry, and other factors could cause results to differ materially from those expressed in the respective forward-looking statements. Present at this video conference, we have Mr. Felipe Montenegro Mattos, CEO of Caixa Seguridade, and Mr. Eduardo Costa de Oliveira, Director of Finance and Investor Relations of the company. I would now like to give the floor to Mr. Felipe Mattos, who will start the presentation. Please, Mr. Mattos, you may proceed.
Hello, good afternoon, everyone. Thank you for attending the Caixa Seguridade's Q2 2023 results presentation. This is a very important moment that we can analyze and check some details of the company, especially in the past quarter.
As said, I have with me the Chief Executive Officer of the company, and with me today, Eduardo Costa de Oliveira, Director of Finance and Investor Relations. Our task today is to present the company's results for the period. On slide three, we have four important highlights of the strategic execution by Caixa Seguridade during the Q2 , 2023. The first highlight goes to the various actions in search of improving the customer and sellers' experience. We invested in improving the sales journey, making it simpler, more intuitive and flexible, with a reduction of steps in the process, flexibility in the documentation required, and the possibility of customizing products according to customers' needs. These improvements have mainly impacted the life insurance sales journey.
With the aim of improving the qualification of the service, we've created specialized structures for investment advice to high-income public and for exclusive service to the PJ, to corporate pension clients. Another highlight of the period was the launch of the new relationship portal for the credit letter customers. Through the new tool, it is possible for customers and sellers to monitor the progress of the delivery process of contemplated assets, in addition to other added features. We reduced the average time to contemplate goods, which was, in the case of vehicles, which was approximately eight days in March this year, to three days in June. This improves the customer experience and reduces demand on more costly service channels, such as Caixa's branch network, for example.
Regarding ESG, another very important topic for the company, we developed improved inclusive products aimed at women and people with disabilities, such as the loan insurance linked to PcD Caixa credit operation. Also, on this theme, in addition to the products, we've completed the greenhouse gas emissions inventory for the base 2022 and the specialized technical audit, and held thematic forum with the company, the companies of the group to define the ESG planning methodology and consolidate macro actions and commitments. This is a dear topic to our company. To conclude the highlights, a point that we are also dedicating a lot in relation to the qualification engagement of the sales force of Caixa's distribution network. The sales team program showed an increase in engagement in the sales of insurance products, reaching 24,700 thousand employees who regularly sell insurance products.
It's not commercialized, but regularly. We highlighted the growth in the number of units and active partners in selling pension products, summing 21,200 channels that are partners showing the capillarity and the strength of Caixa's distribution network, present in practically all municipalities in the country in the Q2. Training sessions were held covering all insurance products, with the participation of over 14,000 people, including employees and partners. On slide four, we talk about commercial performance. Both on four and five, we talk about the highlights of the commercial performance in the quarter. Starting with life insurance, with almost BRL 587 million in premiums written, showed the best quarterly performance in history, a 16% growth compared to the same period in 2022.
We achieved this result with a major sales incentive campaign, which ended up generating a higher volume of sales of single payment policies, which grew 91.4% compared to Q2 of last year. Housing insurance reached BRL 797 million in premiums written, a growth of 9.6% over the same quarter last year. The performance is attributed to the growing volume of real estate financing portfolio of Caixa and its effect on the flow of premium issues, reflecting a consistent and stable premium growth curve. Last month, the government relaunched the Minha Casa, Minha Vida program, the board of trustees of FGTS approved the budget supplementation of BRL 28.8 billion for the housing area. With an initial budget of BRL 68.1 billion, the area will now have BRL 96.9 billion for the fiscal year 2023.
This is the largest budget historically allocated, allocated by FGTS to housing in nominal values or in book values. In real values, it is the largest budget in the past seven years. As a consequence, we expect to maintain the growing performance throughout the year, since the housing insurance revenue stems from the increase in the portfolio balance, irregardless of the line in real estate financing, subsidized or not. Home insurance reached BRL 194 million in previous region, an increase of almost 9% compared to the same period, 2022. This result was also driven by a sales incentive campaign and the maturing of the portfolio, which is already beginning to benefit from a greater volume of renewals. A process that we have invested a lot in, in recent periods, and which is now much simpler and more intuitive in the assistant branch.
Although it has small representation in the company's total revenue, there were great highlights with the growth of 167% compared to the Q2 2022, maintaining an upward curve since the creation of Caixa Assistência. It is a product that is important amongst the Caixa Seguridade products. It's one of the products can be more symbolic, more adheres to the social role of the very company. We should highlight that we've improved the Hap index product journey that is marketed directly to consumers, mainly at branches, but also available at Caixa Aqui correspondents and also the lottery capitalization or funds raised, accounted for more than BRL 311 million in resources collected, a growth of more than 69% compared to the same period last year.
Highlight goes to the increase in volume of collection in the monthly payment modality. This growth, compared to the Q2 of last year, reached 159.2%. In Consórcio, or credit letter, we had a 31% increase in the volume of letters credit of credit commercialized by Caixa Consórcio in relation to the Q2 of last year, reaching BRL 3.7 billion. Resources collected maintained the upward result observed for the previous quarters, in line with the dynamics of this segment, where the sale of letters of credit only sensitize the lines of collected and also administration fee after the formation of Consórcio groups or the credit letter to.
In the pension segment, we closed the quarter with BRL 144.4 billion in reserves, maintaining the upward curve, which represents a growth of 17.3% compared to the Q2 2022. Despite the reduction in gross contributions compared to the Q2 of last year, this quarter shows an evolution compared to the Q1, driven by the commercial campaign carried out during the period. We focused, in the meantime, to retaining our customer base, which is important to highlight that we had a positive net funding balance of BRL 1.7 billion, an increase of 126.7% compared to the Q1 of 2023.
We closed the commercial highlights with the distribution revenues, which reached a level of BRL 481 million, accounting, correct, for a growth of 17% compared to the Q2 of 2022. Amongst the lines that grew the most, the highlight goes to Capitalização, Consórcio. Funds raised and Credit Life, with an increase in revenue compared to the same period last year of 68% and 51% respectively. Regarding slide five on financial performance. Operating revenue grew 22.2% compared to the same quarter of last year, totaling almost BRL 1.1 billion. Of those, we highlight revenues from investments in equity investments, which accounted for 56%, with a growth of 27% compared to the same period in 2022.
While distribution revenues, which accounted for 44% of the total, with a growth of 17%. This improvement in performance is the result of the commercial performance, combined with the maturing of the new structure of strategic partnerships and our own brokerage house in full operation. In the Q2, the company achieved the highest recurring quarterly net profit in its history of BRL 823 million, an increase of almost 21% compared to the Q2, 2022. In the accumulated result for the year, in the accounting perspective, net income was BRL 1,663 million, accounting for a growth of 34.3% in relation to accumulated in the first six months last year.
ROE reached 55.4%, 9.9 percent points higher than the same period, 2022, which was 45.5% growth. That reflects the increase in the profit and demonstrates the company's high capacity to provide returns. I now invite Eduardo Oliveira to continue the presentation, bringing the commercial and financial highlights for the Q2 of 2023. Eduardo, welcome.
Thank you, Felipe. Good afternoon, everyone. I will now present further details of the company's business performance. Starting with the commercial performance on slide seven of risk business. Volume of premiums written in the Q2 of 2023 grew by 5.6% compared to the Q2 of 2022, and 1.4% compared to the Q1 of 2023. You highlight the performance of the housing, life, and assistance lines, which had the best historical result.
Housing, 9.6%. Life was 16%, assistant growing more than 160%. We had growth in all strategic firms, with an increase 10.3% in premiums issued compared to the same period, 2022, resulting in a better first half semester for the company in terms of insurance. Moving to the premiums gained, Q2 grew 12.4% compared to the Q2, 2022, as a result of the increase in premiums issued and the appropriation of the results from the stock formed in previous periods. In the comparison between the second and the Q1, 2023, earned premiums increased 3.6% in relationship between the first half of 2023. The same period, 2022, they increased 12.1%. Still regarding risk business, on slide eight, we bring some operational performance indicators.
In the quarter, claims ratio decreased by 1.9 percent points compared to the Q2 2022, mainly due to the improvement of the Credit Life indicator, and also 4 percent points in the Q1 of that, and with a indicator for all lines of insurance. The result of the quarter is reflected in the half-year indicator, with a reduction of 2 percent points between 2023 and 2022. The commission expense in the Q2 of 2023 showed an increase of 1.2 percent points compared to the same period of 2022, a result related to the product mix and the movement of the indicator for the lending business or credit business. In the year-to-date view, commissioning remains stable, with a slight increase of 0.2 percent points between 2023 and 2022.
Moving to the operating margin, the Q2 of 2023 recorded a growth of 18.7% compared to the same period of 2022, and 7.7% compared to the Q1 of 2023. The effect was of performance of earned premiums and reduction of claims. On a half-year basis, the operating margin for 2023 grew by 19.1% compared to 2022, with growth for all lines of business. In the operating margin representativeness chart, which also considers the accumulation and distribution businesses, the risk business margin had a share of 56% in the quarter, a decrease of 1.6 percent points compared to the Q2 of 2022. Moving on, slide nine, we bring the trading performance for the accumulation business, starting with the private pension.
It's still impacted with other funding products and the distribution network of Caixa, which reflecting comparison to the total collection of the Q2 of 2023, compared to the same period of 2022, with a reduction of 17.8% between periods. In the comparison with the Q1 of 2023, as Philippe said, the collection shows a recovery with a growth of 5.1%, a performance derived from the combination of the growth in pension production and the results of also funds raised and Credit Life. In the composition of the result for the Q2, Social Security continues to have the largest share of contribution, representing 89% of the funds collected, even with a relative increase in the share of credit letters and also Capitalização of funds raised.
Moving to screen 10, we bring operating performance of accumulation business per segment. On the first chart, up on the left, we show the revenue of private pension funds that had a reduction, 24.5%, regarding the period of 2023 and same period, 2022. As mentioned previously, since 2022, the pre- pension production has been impacted by greater competition in the capture of other products, especially LCI and savings in the cash or distribution network. On the other hand, in relation to the Q1 2023, there is a recovery in the segment with a growth of 3.7%, a movement driven by commercial campaigns carried out in the period and the focus on retention.
Net funding for the quarter, therefore, registered a volume of BRL 1.7 billion, an increase of 126.7% compared to the Q1 of the year. The pension reserves, bottom left, amounted to BRL 144 billion, annual growth of 17.3%, whereas the management fee, the average management fee for the Q2 of 2023, registered a percentage of 1.16%, a reduction of 0.04 percent points compared to the same period of 2022, and 0.02 percent points compared to the Q1 of 2023. This reduction is related to a lower volume of redemptions happening during the period. Considering that the average rate, we also consider revenue from exit fees, as well as the funding in fixed income products with lower management fees.
For premium bonds, resources collected Q2 2023 grew by 69.2% compared to the same period 2022, and increased 4.4% compared to the Q1 of 2023. In the comparison between semesters, the growth was under 31%, and in the reserves chart for premium bonds, the amount of BRL 990 million in June 2023 represents an increase of 226% compared to the same period of 2022, and 26% compared to 2023 or March 2023.
As to credit letters, the letters of credit sold in the Q2 of 2023 registered the amount of BRL 3.7 billion, which corresponds to a growth of 31.2% in relation to the volume of the same period, 2022, and an increase of 8.1% compared to the Q1 of 2023. Year to date, the first half of 2023 grew 46.2% compared to the same period in 2022, which led to a stock of letters credit to exceed BRL 14.8 billion in the Q2, an annual growth of 190%, with an average management fee of around 3.9% a year. On Slide 11, we show that the Q2's accumulation operating revenue grew by 44.1%, with an increase for all segments.
Pension continues with the largest contribution to revenue, which was 65% of the amount. The operating margin for the Q2 of 2023 showed a growth of 37.3% compared to the Q2 of 2022, and a growth of 7.6% compared to the Q1 of 2023. On the half-year basis, the 2023 margin grew by 60.3% compared to 2022. Both in the quarterly and half-year views, we observed growth for all segments in the operating margin. In terms of representativeness of the company's total operating margin, the accumulation business, being the highlight of the quarter, have increased their share by 2.8 percent points between the Q2 2023, same period of 2022, contributing with 25.5% on the total.
On slide 11, we're going to talk about operating margin and performance in terms of accumulation business. The revenue with brokerage accumulation, actually BRL 481 million in the 2Q, 17.1% higher than in the same period, 2022, and BRL 954 million for the semester, a growth of 29.4% compared to 2022. Insurance, which accounts for 71% of the share of variance, registered a 12% growth in brokerage in the quarterly comparison, with emphasis also to the performance of credit letters and premium bonds. The chart shows the commissioning of distribution business for the H1 of 2022. Of the total amount, 69% represents the net distribution revenue before taxes, 18% the award fee, and 33% the cash service fee.
The amount of BRL 391 million in the operating margin in the Q2 represents a growth of 14.7% compared to the Q2 of 2022, influenced by performance in insurance, premium bonds, and credit letters. In comparison, operating margin grew 25.1%. Thus, in the representative of the total operating margin, which also considers amounts from risk and accumulation business, the share of distribution business was 18% for the Q2 of 2023, and brokerage. In slide 13, we have some important indicators for the company. The Administrative Expenses Index continues to reflect the progress in the internationalization of outsourced processes in the investees, as occurred in the last quarter.
The indicator for the Q2 of 2023 showed a reduction of 1.5 percentage points compared to the same period of 2022, where with the improvement in the indicator of new partnerships stands out, with a reduction of 1.8 percentage points. The combined ratio, in turn, in the middle of the screen, showed an improvement of 3.3 percentage points in comparison between the Q2 of 2023 and 2022, a movement related to the increase in insurance, credit letter, and premium bonds, revenue from new partnerships, as well as reduction in claims. Still in the quarterly percentage, the indicator for the Q2 showed a decrease of 1.6 percentage points compared to the Q1 of 2023.
Lastly, the expanded combined ratio presented an improvement by 5.6 percentage points in comparison between the Q2 2023 and the same period, 2022, reflecting the growth in financial income and increase in operating revenue. Concluding on slide 14, it's a new screen we bring with the spirit of increasing the disclosure and transparency of the company. We present more details our financial results. Q2 of 2023, the proportion of financial income net of taxes over recurring net income stood at 28%. With the maintaining of the volume related to operating income. In the half-year perspective, this 6 percentage points increase in the share is the result of the improvement in the profitability investment portfolio, reflecting the scenario of higher interest rates of the portfolio and the maturity of old fixed-rate securities with lower yields.
In the investment portfolio composition chart, which shows the consolidated investment portfolio weighted by the percentage stake in each company, we further detail the separate position by index. For the Q2, the portfolio grew 6.8% compared to June 2022, and 3.5% compared to March 2023. Of the total BRL 10.9 billion in investments, 43% are prefixed, 45% postfixed, 8% on inflation index, and 4% infants with another profile. Still, in the accumulated view, the total annualized profitability of the portfolio was 11.5%, corresponding to 86.9% of the CDI. With that, I close the presentation of performance over the Q2 of 2023, I will start the Q&A session. We're going to start the Q&A session for investors and analysts.
If you wish to ask a question, please press the Reaction button and then click on Raise Your Hand. If your question is answered, you can leave the queue by clicking on Lower Hand. If you wish to ask a question via Zoom, please enter your name and company on the Q&A field.
The first question is from Miss William Barranjard from Itaú. William, you may proceed.
Thank you for the opportunity. Here on our side, the idea is to try to understand the recurrence of certain lines of this quarter, starting by the good level of claims or loss ratio that has been shown. I'd like to understand from you regarding this improvement quarter by quarter can be recurrent from now onwards, and what are the main reasons for the improvement itself?
Then, in addition, going back, leaving claims, then we're going to expense slash cost. Do we see a more atypical movement in terms of commission, in terms of Credit Life and life, and also the balance of provision for CSH? If you can talk about the movements, if there is any left of the movement specific for the next quarter or if they end in this quarter. Good afternoon, William. It's always a pleasure to answer your questions today. Your questions have been quite technical, but some of them that are hard to answer. I'm going to start talking about recurrence. You asked about, well, loss ratio. Loss ratio, actually, to us, over this year, we are positively surprised by the level of the loss ratio of our insurance companies.
We imagine that the loss ratio would tend to be over the year at a level that was below our historical level of loss ratios of 23%. What we're seeing in the first semester or Q2, a lower loss ratio, well, 23%, 22% accumulated in the semester.
This, William, is due to the reduction in announcing or informing on claims. We're checking with the insurance companies to see whether this is an increase in time but the increasing time between the claim and the information of the claim.
so far, the result of the conversation is that actually there is a reduction in claims, and the expectation is that we should have a positive year in terms of lost ratio, but it's still too early for us to deduct that this index of the year will be closer to the quarter, but around 20%, or if it will go back to a level that was closer to the history one, around 23%. As to commissioning, actually, we have an adjustment. Well, for Credit Life, it's been impacted by the revision in the base of all the contracts on the whole inventory of policies that impacted our numbers in the Q2 2023. Well, this is something that happened, as you've mentioned, and it was specific. It's ad hoc. It's not something that it will be recurring.
As to life, we've also had this adjustment. In this case, the adjustment was the opposite. We had an expense in commissioning because of this operating adjustment that was positive and actually offset the part of credit life adjustment. It's an ad hoc adjustment, very operational, that should not impact from now on, actually. Well, overall, what commissioning that we see on slide eight of our presentation, it reflects the sales mix, okay? Each product has a different type of commission according to the sales mix. This may influence the commissioning index. Our expectation from now on is once over of the operating adjustment, it should drop. To what level will it drop? It will depend on the sales mix of the future periods.
As you also talked about the adjustment of provision as CSH, that was an expense of BRL 48 million in the line of financial results of Caixa Seguradora. This variation derives from an adjustment in the balance of provisions existing regarding the area of success, which is actually the mortgage portfolio of the 1970s and 1980s that had some coverage for construction. Basically, here, the expectation of disbursement has been updated because of interest rates, expectation of disbursements related to their provisions, right, William?
They do not mean necessarily disbursement. In addition, in this kind of operation, when the insurance company makes a payment, right after that, there is some kind of reimbursement demanded or asked from FGTS, very common to the runoff portfolio, and specifically, this may we may have some revision of assumptions to make up the balances of such provisions. I hope I've answered your questions, William.
Perfect, Eduardo, very clear as always in your answers.
The next question is from Antonio Ruette from Bank of America. Antonio, you may proceed.
Good afternoon, everyone. Congratulations on the results. Thanks for the opportunity of allowing me to ask questions. I'd like to talk about the strategy. If you could discuss two points, specifically. The first would be financial results. The company historically has been very much exposed to prefixed bonds, which was seen as a competitive advantage in the financial results. Now we have seen a greater exposure to post-fixed bonds. I'd like to understand the rationale if you want to go back to prefixed bonds or securities, what's the goal here? The second question is the strategy, but in terms of origination.
We've seen in this quarter origination, both in terms of private pension and insurers being hindered somehow by the dynamics with Caixa. Caixa focusing on funding at the bank, and also some weaker dynamics of credit origination that impact its insurance. I'd like to understand in your minds, how do you view as a mechanism, how do you evaluate the relationship with Caixa to maintain the operating results sound despite these hiccups with Caixa? Thank you.
Good afternoon, Antonio. Well, let me try to answer you, starting with the financial results. Well, actually, we are going through a transition period, right, Antonio? As you can see on the slide we are showing here. On slide 14, we were till the Q3 last year, we had a relevant stake of prefixed papers or bonds, as we said.
In previous moments, they had the bulk of their maturity over the first half of 2023, and then we have this movement of transition, where we temporarily, we have taken a more post-fixed position. We are at a cycle of breakage that started after the last Copom meeting, but we have good opportunities to lock at high rates and increase the profitability of our portfolio, right, Antonio? This movement of going back to having a more relevant part of the portfolio to be with fixed-rate bonds and/or prefixed bonds. We see this early this year. We should move on this trend, especially now in the Q3. We should have a higher volume of fixed-rate bonds.
Anyhow, this effect of this true portfolio transition movement is the increase, shows the increase of our average yield, and actually, post-fixed, it reflects the interest rate and the pre- or fixed-rate bonds that we had, the average yield is growing over the period. The trend is that it continues to grow for some more time. The result of that is that our financial result is not going to be so sensitive or drop as much as the speed of the drop of interest rates, considering that the market expectation regarding the next Copom moves should be assertive. As to private pension, actually, we have a challenge along with the, the bank's distribution network.
Private pension is a product that competes with other funding products of the bank, and the priority of the bank, for various reasons, is to reinforce its funding, to have greater conditions to keep on growing on credit, which is of our interest as well. At the moment, a movement that is more robust and more effective in reinforcing the funding base. It happened at the end of last year. If in this first half, it's not so strong as last year, but it still exists, and the trend is that should continue for some more time. Right, Antonio? Private pension should continue to be a bit impacted by that. As we've shown here in the private pension results of the Q2, we took several measures to mitigate this effect, especially regarding retention of our current clients, and this has been successful.
What we assume for the second half is a move that is closer to the Q2 than the Q1 . Lastly, you've asked about credit of Caixa.
What effects this will have for Caixa Seguridade?
Well, credit actually is one of the main drivers for the company's growth, and with credit, not only those credit directly re-related at Credit Life, credit opens the door for cross-selling of other insurance products. We understand that the recovery of growth in credit at the bank that should take place in the second half will be positive for the company, not only in terms of Credit Life, which may have been one of the frustrations for us in the first half, but also on the other lines, too, Antonio. It's important to stress that our relationship, we are, well, totally linked to Caixa.
Any strategy the bank decides upon will be something we will adopt regarding funding, credit, or any kind of specific market, some kind of customer segment. Caixa Seguridade, its greatest strength is Caixa Economica. It is the customer base, the distribution network, the power of the Caixa brand, we'll always work together with the bank in a way that we may generate greater results to the company that brings greater value to our shareholders, both Caixa Economica as the controlling shareholders and minority shareholders. I don't know if I've managed to answer all your questions. Well, your questions were quite broad. If I've dropped anything along the way, let me know. Feel free to bring it back to our conversation.
I do. Very clear. Thank you.
Next question for Paulo Bizzio.
Good afternoon. There is more frequency in the distribution of revenue, what is the reason? Thank you.
Good afternoon. Thank you for the question. The part of dividends is a recurring topic of our conversations. We have great clarity regarding how much this is dear to our shareholders. We are going after making it feasible, an increase of frequency of paying dividends. The payout with our intent is to keep on 90%. As we mentioned at the previous video conference, we envisaged the possibility of making the increase of frequency of dividends, moving from every half to quarterly. This is a scenario we're pursuing currently. There are several instances that need to be asked and approve the change. This entails as some changes related to policy changes, alignment with the companies that are below.
This is not something that cannot be overcome, this is something we're pursuing here to complete all the preceding activities, the preceding requirements, so that as of next year, we can actually complement the payment of dividends quarterly, which is something that is so dear to all our shareholder base.
The Q&A session is closed. We would now like to give the floor to Mr. Felipe Matos to make the company's final remarks.
Today has been, once again, my second presentation of earnings results of Caixa Seguridade. I'm very honored to be here, the most important thing is to bring all our team with me, everyone from Caixa Seguridade, to have all of us available to each and every one of you, so that you can clarify questions, so that you can think a bit more about the company, Caixa Seguridade, which is a success case.
Look a bit more closely to the company, and for sure, I have no doubts that after a more, a briefer analysis or deeper analysis of the company with more details, there will be even more questions. For that, we are here so that you can all, over time, appreciate, as we appreciate or enjoy, that we are honored to be in this company. Thank you very much for the trust to each one of our shareholders, everyone dedicating some time to cover our company, Caixa Seguridade. We are still available to all of you, not only this afternoon, but also in the contacts that you all have. I do thank you very much for being here with us. Good afternoon to you all.
The Caixa Seguridade video conference is now closed. We thank you all for your participation and wish you all a very good afternoon.