Good morning, ladies and gentlemen. Welcome to the video conference for Caixa Seguridade for the first quarter of 2025. This video conference is being recorded, and the replay can be accessed at ri.caixaseguridade.com.br, where the presentation will be also available for download. To hear the audio in English, please click on the Interpretation button. Please be advised that all participants will be watching during the video conference, and then we'll begin the Q&A session when further instructions will be provided. We have Mr. Felipe Montenegro Mattos, CEO of Caixa Seguridade, and Mr. Eduardo Costa Oliveira, Director of Finance and Investor Relations for the company. Now, I'd like to give the floor to Mr. Felipe Mattos , who will begin his presentation. The floor is yours. Good morning, Matheus. Good morning, everyone. Thank you for attending Caixa Seguridade's results presentation.
Today, we will present the company's results for the first quarter of 2025. On slide three, we'll start with highlights connected to the two branches linked to Caixa's core business, Housing Bank. At the beginning of 2025, both housing insurance and residential insurance continue to benefit directly and indirectly from the pace of growth in Caixa's housing loan portfolio. These lines of business achieved their best-ever performance in terms of premiums issued in a single quarter. Housing insurance showed another quarter of consistent growth, reflecting the product's tech characteristics, ending up following the performance of the housing loan portfolio. We closed this quarter with BRL 962 million in premiums written, an increase of over 12% if compared to the same period last year. These results give Caixa Seguridade as the absolute market leader in this area.
In home insurance, the volume of almost BRL 268 million in premiums is, for the fourth consecutive quarter, the record for issuances, representing an increase of more than 26% compared to the same period in 2024. This performance is the result of the strategy implemented to increase the length of time clients stay with us, making results more resilient, predictable, and sustainable. In this sense, we saw an increase of over 47% in the residential coupled with housing modality, which has the same duration as real estate financing, benefiting from the stacking effect and generating long-term results. In addition, we had an increase of almost five percentage points in the insurance renewal rate compared to the same period in 2024.
Concluding this slide, and always seeking to meet the needs of our customers with the best value proposition, I would like to highlight the [Foreign language] campaign, launched in the fourth quarter of last year, running until February this year, which accounted for over 8% of residential issuance this quarter. During the campaign, the first installment of these three-year insurance policies, with the option of automatic renewal paid for with a Caixa credit card, was only BRL 1. This partnership with Caixa Cards, in addition to generating a base of long-term home insurance with low defaults, has strengthened the synergy between the companies in the conglomerate, bringing benefits to clients of both companies. On slide four, I will talk about welfare and assistance for this quarter.
In social security, we recorded BRL 7 billion in contributions in the quarter, an increase of over 8% compared to the same period last year, contributing so we could reach BRL 179 billion in reserves, an increase of more than 12% in 12 months. During the quarter, we made processes to adjustments to allow the product to be used as a credit guarantee for individuals at Caixa. This way, while the customer gets the benefits of more attractive credit rates, we increase the customer's permanence in the company. Since the pension application must be maintained while the loan is being amortized, and pension is also a way of saving for the future, for the future of families. In addition, we have made new fund options available to private clients, including more sophisticated options to meet the specific needs of this public, of these clients.
Also noteworthy on the screen is the steady growth in revenues from assistance services since the start of the investee's operations in 2021. In this quarter, there were over BRL 68 million in revenues, especially Rapidex, a product that grew over 55% compared to the first quarter of 2024. Slide five shows that in this first quarter of 2025, we have reaped the rewards of the strategy adopted with a focus on consistent long-term results for consortium and capitalization. Started with consortium, a product that has performed robustly, favored by the current scenario of high interest rates since it presents itself as an option to traditional financing. The volume of letters of credit maintained an upward curve, reaching BRL 5.5 billion, an increase of almost 38% compared to the same period in 2024, with real estate consortium standing out, growing over 51% in this quarter.
We also cover over 3,500 letters of credit, totaling more than BRL 475 million in goods delivered, an increase of 33.2% compared to the first quarter last year. For capitalization, the focus on monthly payment products has been generating good results, with more sustainable results requiring less redemption, provisioning, and consequently has a better operating margin on the investment. In the quarter, funds collected grew by almost 9% compared to the same period in 2024. Collections in the monthly payment modality grew by more than 55% in the same comparison year- by- year, generating an improvement in the operating margin of more than 30% year- on year over these periods. Moving on to slide six, we highlight the public offering completed in March 2025.
Through a successful follow-up, the company now meets the minimum percentage of 20% of shares in circulation, fulfilling all the requirements of B3 regulations, tending to show an improvement in the liquidity of its shares. During the quarter, we improved ESG, Vida Mulher Insurance for women and Previ women were reformulated to make it possible for transgender women to contract these products and to include women's support assistance, a service designed to support women in situations of domestic violence. Also, during the first quarter, Caixa Seguridade implemented new initiatives related to responsible business practices with sustainable processes in all operations, promoting an inclusive low-carbon economy. Among these initiatives, we have the development of training actions on the gender agenda and combating and fighting violence against women, as well as expanding actions in the field of female empowerment.
In terms of climate management, the company acquired carbon credits that guarantee the offsetting of three years of emissions for the holding and the brokerage houses. Finally, the inclusion in the ICO2 Index reinforces Caixa Seguridade's commitment to efficiency in the emission of Greenhouse Gases and the adoption of management practices that lead to greater efficiency in these emissions. As a wrap-up of this first part, let's move on to the company's big numbers. We achieved a net profit of over BRL 1 billion in the quarter, an increase of more than 9% compared to the same period in 2024. Now, operating revenue reached BRL 1.4 billion in the quarter, representing an increase of more than 10% in the same basis of comparison.
The result has an impact on our main indicator, ROE, which ended the quarter at 58.6%, or 0.2 percentage points higher than that achieved by the end of March 2024. Discounting the dividends of the fourth quarter of last year approved in the last AGM and due to be paid next week, ROE would be 62.2%, an increase of almost 1 percentage point on the figure recorded in March last year. Finally, in line with the practice we adopted last year, our Board of Directors yesterday approved the distribution of BRL 930 million in profits for the first quarter of 2025, a payout equivalent to 92%, higher than the 90% level we have adopted. Now, Eduardo Costa Oliveira will continue talking about the financial and commercial performance of the first quarter of 2025. Thank you, Felipe. Good morning, everyone.
I will now present more details on the financial, commercial, and operational performance of the company's businesses. On slide nine, we begin with an overview of the company's major figures. In the first quarter, operating revenue grew by 10.5% year -on -year, reaching almost BRL 1.4 billion. Out of this volume, 56% corresponded to revenues from equity investments, up 9% on the same period last year. I would like to highlight these historical results of Caixa Consórcio, Caixa Residencial, Caixa Capitalização, and Caixa Assistência. The remaining 44% of operating revenue refers to distribution, which showed an increase of 13% compared to the same period in 2024, with an emphasis on revenue from the housing and residential insurance branches, as well as the consortium segment. In the quarter, net income exceeded BRL 1 billion, equivalent to a growth of 9.2% year -on -year.
From an accounting perspective, following IFRS 17, the profit of BRL 1,050 million corresponded to a growth of 22.8% this quarter, with an ROE of 58.6%, an increase of 0.2 percentage points compared to the same period, as Felipe mentioned. We consider the distribution of dividend for the fourth quarter of 2024 to be paid next week. The adjusted ROE would be 65.2%. Now, moving on to slide number 10, let me talk about the commercial performance of Caixa Seguridade insurance businesses. Starting with premium written, the highlights were the housing branch with 12% growth, a record performance that reflects the progress of Caixa's mortgage portfolio, and the residential branch with a 26% growth, a record for the fourth consecutive quarter. This result has to do with the strategies adopted by the branch and highlighted by Felipe.
A focus on consistent and sustainable long-term results is a pillar of the strategy of Caixa Seguridade. In addition to the positive and expressive results in the housing and residential segments, new sales in the quarter regarding life insurance with monthly payments showed an increase of 93.4% compared to the first quarter of last year. Although this was not visible in this quarter, as premiums remained unstable, this dynamic will translate into an increase in premiums over time. On the negative side, we have the credit life insurance, whose premiums fell by 33% year -on -year, reflecting a very challenging macroeconomic scenario with higher interest rates and therefore lower affordability for commercial credit clients, both individuals and companies. In the graph on the right, premiums earned for the first quarter of 2025 grew by 7% compared to the same period in 2024, which reflects the resilience of our business.
I would like to highlight [Foreign language] , which, despite the quarterly drop in premiums issued, maintained the level of premiums earned in the first quarter of 2024. Now, moving on to screen 11, here are some operational performance indicators. Compared to the first quarter of 2024, the loss ratio indicator increased by 3 percentage points. This movement is due to two factors the return of the credit line indicator to a normalized level after an atypically low fourth quarter last year, which was already expected, and the increase in the loss ratio in the housing runoff due to the one-off recognition of provisions for high-value legal claims, totaling BRL 16.4 million, and a greater number of notices in this quarter. Regarding commissioning, the dynamics remain within historical levels with no significant variations.
As for operating margin, the first quarter of 2025 was impacted by the lower volume of premiums written and the volume of claims in the insurance segment, leading to a decrease of one percentage point in insurance share of the company's total business margin. On slide 12, we see the performance of the accumulation vertical's business by segment, including social security, capitalization, and consortium. Starting with social security, in the first quarter of 2025, the gross contribution grew by 8.5% compared to the same period in 2024, contributing to total reserves reaching BRL 179 billion, an increase of more than 12% compared to the end of March 2024. Moving on to capitalization, it's possible to see the effect of this strategy of focusing on the monthly payment modality, whose representativeness in total collection increased in the quarter.
Sales with monthly payments grew 55% year -on -year, which contributed to an 8.7% increase in funds collected compared to the first quarter of 2024. The result of this dynamic is an improvement in the segment's operating margin, as Felipe pointed out, and the capitalization reserves, which exceeded BRL 2.6 billion, grew 48.4% year on year. Finally, letters of credit sold by Caixa Consórcio reached a stock of BRL 36.6 billion by the end of the quarter, accounting for a growth of 62.2% compared to the first quarter of 2024. Of this total, BRL 5.5 billion came from sales in the first quarter of 2025, of which BRL 4.1 billion, or three quarters of the total, corresponds to real estate letters of credit. Now, talking about accumulation business, on slide 13, operating revenue grew by 15.6%. The main highlight was consortium, which showed a significant growth of 34% between the periods.
With regards to the operating margin of the accumulation vertical, in the first quarter, we saw an increase of 13.6% compared to the same period in 2024, with growth in all segments. Although social security stands out, it's important to note the increase in the relative share of consortium and capitalization in the quarter. As a result, the representativeness of the total operating margin, which also takes into account amounts earned from the risk and distribution businesses, increased by 1% compared to 2024, totaling 26% in the first quarter of 2025. Now, we have more details on the distribution business, our brokerage business. The distribution business includes results related to revenues from access to the distribution network and use of the Caixa Brand, BDF, and revenues for brokerage or intermediation of insurance products, here considered together as brokerage revenues.
In the first quarter, brokerage revenues grew by 13.1% compared to the same quarter in 2024. On the table on the left, you can see the performance broken down by insurance branch and accumulation segment, highlighting revenues from housing insurance with 32%, residential insurance 31%, and consortium insurance with an increase of 59%. As for the distribution of brokerage, 21% of the total revenue was used to pay Caixa employee and partner award fees, and 12% was used for Caixa service fees. 67% of the amount paid by operating companies remained with the brokerage house this quarter. The operating margin grew by 3.6% this quarter, with an emphasis on the same lines I mentioned above. In total, the distribution business represents 28% of the total operating margin, of which 22% refers to the insurance vertical and 6% refers to the accumulation vertical.
On this next screen, the KPIs, the operating indicators, are represented as a group, considering the percentage of Caixa Seguridade's economic stake in each investee company. The administrative expenses index in the first quarter of 2025 remained stable in relation to the same period in 2024, with a slight variation of 0.1 percentage points. This variation is due to the administrative expenses in the former partnership of Caixa Vida e Previdência. The combined ratio, CI, grew by 2.6 percentage points in the first quarter compared to the same period, reflecting the increase in the volume of claims in the housing runoff of CNP Holding and in Credit Life at Caixa Vida e Previdência. The extended combined ratio, ICA, saw a growth of 1.6 percentage points compared to the first quarter of 2024.
Now, moving on to slide 16, we can analyze the operating and financial results and their representativeness in net income, considering the effect of all shareholdings net of taxes and proportion due to Caixa Seguridade. The financial result of the first quarter of 2025 was higher than that seen in 2024, with an increase of 37.1% in relation to the first quarter of last year, reflecting the increase in the SELIC rate volume invested and improvement in the portfolio's profitability. The financial results accounted for 31% of Caixa Seguridade's management net income in the quarter. Regarding the group composition of the investment portfolio, we present its accumulated profitability and historical composition in the group view, weighted by the percentage of participation in each company.
In the first quarter of 2025, the total of BRL 14.2 billion in financial investments, 47% was in post-fixed amounts on papers, 35% in pre-fixed, 13% in inflation index, and 5% in other types of funds. The average return on the fixed-rate portfolio was 12.4%, an increase of 100 basis points compared to December 2024. This concludes the presentation of results for the first quarter of 2025, and we'll soon start the Q&A session. Thank you all very much. We'll now start the Q&A session for investors and analysts. If you would like to ask a question, please press the reaction button and then click on raise hand. If your question is answered, you can leave the queue by clicking on lower hand. Questions should be asked only in Portuguese. If you wish to ask a question via Zoom, please enter your name and company in the Q&A field.
Our first question comes from Arnon Shirazi from Citibank. Please, Arnon, you can go ahead. Hello. Good morning. Thank you for this opportunity. I would like to talk about the [Foreign language] insurance. There was a drop in the year -over -year, same seen in the competition, and the impact of the semester was also important. Last year had some impacts lower than that make it lower than for this quarter. Which are your perspectives? What and how is this product being structured according to the dynamics of the market? Thank you. Good morning, Arnon. Thank you for your question. The audio was a little low, so maybe I have not heard all the complexity of your question, but let me talk about the money lender service, the so-called [Foreign language] service.
[Foreign language], this line was we had a drop in this first quarter with a drop of the emission of premiums with a drop of 33% year -on -year. This was due to macroeconomic effects. We could tell that the increase of the interest rates and increase of funding and credit services would lead to a reduction in the credit volume of credit provided by Caixa. Even in those operations that continued, that remain, even in them, affordability of the ability of clients of acquiring a [Foreign language] loan, the service would be impacted. We saw this and even more than we could imagine. There was a slight drop related to the production of commercial credit in the bank and also a drop regarding the penetration of this type of loan, the [Foreign language] loan in individuals, also in entities, in companies, and also rural loan operations.
These dynamics, what the situations that led to this impact should continue, we expect them to continue. We try to work on some factors to make us believe that this will be dealt with throughout the year, but we have still the same macroeconomic situation. This increase that we see, if you compare quarter -by -quarter, is due to a more a typical semester situation than necessarily an increase in this quarter. According to our point of view of this drop in 20% in [Foreign language], in this in claims, I mean, this is a good reference for us in terms of the product's standard number of claims. This variation, it does not worry us, it does not concern us so much because last year it was below the average. For us, this level of claims around 20% is a good reference for the year.
I do, let me tell you that the main take-home message is that if the scenario is a little strange or different if compared to last year, since the past quarter we were talking with analysts and showing that, well, we had a very strong third quarter last year, but we were lending little by little, and now we are following the expected road. We had a plan for this impact on the [Foreign language] loan service given the macroeconomic scenario, but Caixa is very strong in loan concession, in credit granting, and in every segment, Caixa works. Security, Seguridade, will be fully integrated to the strategy. Thank you very much for your question. I have a follow-up. Second question comes from BTG Pactual, Ricardo Bushpiguel. Ricardo, you can go on. Hello. We could not hear you. Can you repeat your question, please? Arnon, we cannot hear you.
Oh, this is Ricardo from BTG. Thank you for this opportunity. I have two questions on my side. First question, still talking about [Foreign language] premium services, you talked about a drop of 33%-34%, and the premiums paid only 2%. Let me understand this difference a little better. Is this mostly related to the duration of [Foreign language] agreements and contracts, or any other facts that could explain this more premiums paid in this semester? Also, could you talk about the contract's duration in the segment so we could think how these premiums will evolve from now on? Also, we saw an increase in expenses in the holding around 15% quarter -to- quarter. Could you explain the factors that led to this increase in expenses, please? Hello, Ricardo. Good morning. Thank you for your question. Let me start talking about the [Foreign language] loan service.
This difference between premiums issued and premiums earned is what we always try to reinforce and discuss because this is one of the characteristics of our business that provides us or provides Caixa Seguridade with resilience because premiums earned is how much we accrue from the sales of premiums in a given period. What we sell in premiums in the [Foreign language] segment, it's discounted in the time. If a payroll loan with 36 months is made in the [Foreign language] system, we'll have in the first month, we have a total emission of, but it will represent one over 36 because it's 36 months. We will be checking this premium paid. When you see a drop in premiums, this reflects that we sold less insurance than in other periods.
However, the results referring or related to the sales of previous period, they sustain the earned premiums regarding the [Foreign language] segment for this first quarter. It means that if we have a lower performance in a given quarter, just like in this first quarter, this is dealt with by the effort made by Caixa Seguridade in order to dilute this drop in sales as time goes by. As we recover, as we increase the sales of [Foreign language] service, we will find a balance and get closer to the levels of between issued premiums and earned premiums. Regarding the duration, it is around three years for the [Foreign language] service. It is relatively short, a short period. Usually, clients rely on a longer period. For this [Foreign language], usually it is three years, and some of the clients, they pay up the service in less than three years.
Can you repeat the second part of your question, please? We saw an increase in expenses and costs of your holding. When you look at the holding P&L, in the order of 15%, if we add the two of them and compare quarter- by- quarter, can you explain this increase in expenses? Yes, thank you, Ricardo. Actually, this increase in costs and expenses, it was not related to the holding administrative expenses. It is related to expenses in commercialization, basically the fees that our brokerage service pays to Caixa, referring to the cost of service, almost reimbursement Caixa Seguridade pays to Caixa, referring to the cost of the Seguridade services in the bank's channel and the premium fees to Caixa employees, which is a way to motivate and incentivize our commercial partners and employees to sell the Seguridade services. This dynamic follows the sale mix.
There are products whose premium fee is very low. Let me give you an example, like the housing loan. It is mandatory. It is a mandatory loan, so there is no premium paid for the employees. However, a pension plan demands the employee to put a lot of effort to sell this product to clients. Because of that, different fees are paid according to the product and how hard it is to sell the product. These differences in costs regarding the holding have to do with this mix. In this first quarter, there was a very strong sale, robust sale in consortium, which is a product that carries a higher cost regarding the fees paid and also lower sale of [Foreign language], which has a lower cost of service. The very mix of sales determines whether this relative cost increases or decreases.
In this quarter, we sold many products with a high cost of sale. This is why the relative cost increased if compared to other quarters. Okay, thank you very much. Thank you. I know, I'm sorry I couldn't listen to your audio before. I would like to open the floor for you. You had a follow-up, right? Sorry, I interrupted you before. No, no problem. Great. I have a question regarding [Foreign language], and there is a follow-up. It's clear that the origin is weaker and the trend in the short term is this, but regarding the stock of this contracted product, can you see any attempts of cancellation in these accounts or are clients trying to cancel? No, nothing different regarding history or other years. If the credit operation is paid up, that is, we made a calculation.
If the clients pay up before the end of the contract, this difference between the premium paid regarding that, it's given back to the client if they pay up before the end of the contract. This is usual for the [Foreign language] service, and it's aligned with historical levels. It varies segment from segment. In the first semester, there was an increase for individuals, but a drop regarding companies, especially rural loan, rural credit services. Depending on the segment, they present different dynamics. On average, at Caixa, there was a slight drop. Caixa will be able to give you more information when they release their results, but there was not only a drop. There was a drop in the generation of commercial products for the bank, but followed by a reduction in the penetration of the [Foreign language] service, especially among individuals.
As this macroeconomic scenario decreased affordability, the client were willing to contract, acquire a [Foreign language] through a payroll loan with a higher cost of this funding. Their willingness to contract the service decreases or the level of coverage decreases. There are these two elements. There is less origin and less penetration, especially among individuals that led to this reduction of premiums issued for [Foreign language] service. Oh, thank you very much. Thank you, Arnon. Now moving on to Antonio Ruette from Bank of America. Antonio, go ahead, please. Good morning, everyone. Thank you. First question regarding premiums. Could you explore a little further in other products besides residential, other avenues for growth? The residential shows your effort in terms of commercial campaigns and in terms of cross-selling and new products, and it was very successful.
Can the same approach be applied to other products like Vida, the life insurance product? You're selling more with monthly payments. Are there any other initiatives to other products using or relying on the same strategy, maybe capitalization or consortium? How can we work to decrease a drop in premiums in spite of a lesser origination of credits? Maybe a second question, quick question regarding the financial results. In the past quarters, you had 100 basis points of points increase at SELIC. Could you update us on these figures, please? Good morning, Antonio. It's always a pleasure to talk to you. Regarding premiums, we have a natural trend. We look more to what's not going so well than we do to what is going well. [Foreign language] did not perform as well as we expected, but the other lines that you mentioned were spectacular.
The residential line had a record growing over 26%, if I'm not mistaken here. The housing product, 12% growth, and the characteristic of stacking for the housing segment, 12% is not something to be discredited. This is very good. It's a very good level of growth for Caixa. We understand it should keep on showing a strong performance throughout the year. We see the loans and, I mean, insurance products. There are two lines moving up, residential and housing, and also the life, the Vida product. It has the potential to contribute so that this scale, this equilibrium between positive and negative results tends to a positive side. Our expectation for the rest of the year is that this gap opened by [Foreign language] decreases through the year.
We know this will not be easy to do, but residential and housing and also life, the Vida service will bring positive contributions throughout this year. We believe that we'll have an increase in the emission of these premiums. This decrease in [Foreign language] service was, it caused a lot of attention, but we hope that it will not keep as negative for the rest of the year. As you mentioned, there are other increased leverages, and even for the [Foreign language], Caixa started by the end of April selling the [Foreign language] loan in private payroll services operation. It has the potential to close this bridge, to bridge this gap regarding the [Foreign language] service.
It's still too early to know how much this gap will be closed by these sales in this commercial loan or commercial credit segment, but we see this as a positive factor this year, especially from May on, from June on, the second semester too. Regarding other lines, other products, let me tell you, Antonio, that every day at Caixa Seguridade, we work on a daily basis. We work 24/7 here to identify opportunities regarding new products, to identify new cross-selling opportunities, a channel maybe that is not performing so well or not taking full advantage of its potentiality. This is something that is continuous here at Caixa Seguridade, along with Caixa, along with our private partners and the companies we invest in. We have a rollout segment here that is very strong. These products individually, they will not solve everything. There is no silver bullet.
There is no magic formula, but the set of new launches, this mix of new initiatives will help us, will make us increase our results in the long run. As Felipe mentioned during his presentation, our focus is on the long term. If you have a product that has a better result in the long term, even if it cannot be seen in the short term, we will give priority to the product that will provide us with a sustainable growth, a solid growth in the long run, bringing financial results to Caixa and to our shareholders that will be more relevant through time. Thank you, Edu. Edu left me a question here regarding an update regarding the basis points. Each 100 basis points, how much of return we would see in terms of financial return? We do not focus on financial return.
It's very important, we know, but we focus on the operational return. We'd like to talk about new forms, new ways of improving our operations as we have done. Our focus has been on the operations because we are very profitable. This is our function, to generate more value to the society, always trying to align the best strategies to serve our clients. Every 100 basis points, we have something around BRL 40 million increase in the financial results. There was a slight increase if you compare quarter -by -quarter. Unfortunately, regarding the SELIC scenario, we expect this figure to increase a little bit through the year. That's super clear. Thank you very much for your answers. Thank you, Antonio. Now moving on to Kaio Prato from UBS. Please, Kaio. You can go ahead. Good morning. Thank you, Edu, Matheus, Felipe, for your presentations. I have two questions.
First of all, I would like to listen more about the brokerage margin and costs, commercial costs. Edu talked about the NIPS effect. [Foreign language] was negative for this quarter. This was the quarter with the lowest margin. It had a coverage of 70%, and the lowest level had been or was 76%. So were there any reviews regarding brokerage, or is this just a mix or a lower result for [Foreign language], or should we wait, or should we wait for an improvement or recovery, or should we keep on working with this margin for the whole year? Thank you for your participation. Regarding brokerage services, mix is the main factor. That is a second element that derives from the mix, but let me highlight this regarding consortium. Consortium services, they have a dynamic of having higher acquisition costs.
The premium fee in the consortium is high if compared to other portfolio products. If we have a quarter that grows a lot in consortium, as we did, this becomes more apparent. There is another characteristic of consortium that should be highlighted. This cost is really concentrated in the first month after the sale. This payment of this premium fee, especially, it usually takes place in the first month after a consortium service or product is sold. When you have a quarter that has a lot of sales and you carry some of the cost of sale of the previous quarter, in the past quarter, we had the best quarter last year, the fourth quarter of last year, we sold almost BRL 7 billion in credit or loans products. This goes into, this carries into the first quarter.
You asked if this is a trend moving ahead. We understand that this consortial dynamics will keep on being strong. However, if we think about this dynamic of appropriation of the costs regarding the brokerage results, this first quarter is supposed to be the worst because you have this situation in which you have a record from the previous quarter with a lower production of products with low fee in this first quarter. There is this component. Maybe this will be the worst quarter. Looking ahead, we always say that that ratio, this average ratio of 20% or 10% of premium fee and 10% of Caixa fee is a good reference. This was the first quarter, as you said, in which this mix of features made us move up this level.
We believe that we will be back to the historic levels in the next few quarters. We believe this figure was atypical, how can I say? In this first quarter, it was supposed to, it was very, it was hard to pay in this quarter, and it is supposed to increase. Thank you. Now I would like to talk, to ask your opinion. You started working with private payroll. I am sorry, Kaio, just a minute here for us to open the audio here because we cannot hear you. Just a second, Kaio, please. You can go ahead. Can you hear me now? Talking about [Foreign language] Insurance, you started operating this from the private payroll service, right? Could you talk more about how this experience is unfolding and what are your expectations for this year? Do you have anything to share on this topic?
As Edu mentioned before, this is a new experience. It started now. We changed it from an integrated system moving on to Caixa. We do not have sufficient elements or enough elements in terms to talk about penetration and how this market will be because it's a new market. When you talk about this product, we always are very cautious. We are very cautious because we will be able to talk more clearly about that when you have more data about the penetration of the product, the acceptance of the product. As soon as we understand how this product will behave, we will be able to discuss it. It's too soon for us to understand it. In the second semester, we will be able to talk more about that. Okay, thank you very much. Kaio, hello. I don't think we can hear you. Hi. Can you hear me?
I'll just, yeah, just I would like to say thank you. Thank you for your answers. Thank you, Kaio. Now moving on with Tiago Binsfeld from Goldman Sachs. Hello, good morning. Felipe, Edu, and Matheus, I would like you to discuss pension plan, your expectations for redemption. This is a very resilient line in your portfolio. Could you talk more specifically about your expectation for the pension plans to guarantee credit services? How do you see this initiative moving forward to guarantee your results? Hello, Tiago. Thank you for your question. I will start, and then Edu will continue. The pension plan is a very resilient service, a very resilient product connected to our image, the image of solidity that our company has. This is very important to us.
When you talk about what we expect in terms of pension plans, we expect it to grow steadily, just like in the last quarter and also in this first quarter, also reflecting a high SELIC interest rate and also a natural trend following the dynamics of the Caixa sale channels and the needs of the bank. Our strategy is always coupled with Caixa's strategy. When you talk about pension plans and guarantees, the idea is to maintain the client. This is one of our main focuses because pension plan reserves, I mean, the worst scenario is the client applies or puts his money, their money in this pension plan, and then they remove, they withdraw the money.
We know sometimes life requires people to do that, but we want to make everything we can with lower rates, with cheaper rates, or to help clients to maintain their money in this plan so they can guarantee their future. Our volumes, just like in the [Foreign language] service, we cannot yet say how the demand will be. We do not have enough data to talk about the demand yet, but the idea is to secure this option for our clients. The strategy is to maintain our portfolio with almost BRL 180 billion administrated places as one of the main companies in the market. Naturally, other companies will attack those who have more reserves in pension plans. Our idea is to maintain our portfolio and also discuss portability and cashback.
In the middle of this year, we will have more opportunities to do that, benefiting clients who decide to come to Caixa Previdência through these portability services. There will be natural advantages and also financial advantages connected to their pension plans. Caixa and Vida Previdência brought us new practices, new access to private ISG funds and new funds. Clients who are not satisfied with their investments and applications, they can have better adaptability or better focus concerning what they expect for their future. I think Felipe has said it all, but let me highlight one point here, precisely our expectation regarding pension plans. We have had two very challenging years, 2023 and 2024, regarding pension products. Caixa Seguridade's strategic alignment with the bank.
The bank duly prioritized a focus in working with funding for housing products, and pension plan was maintained as a second priority for the bank in these two years. This dynamic will be a little different this year. Last year, some changes were made. There was, for example, the launching of the tier four of Minha Casa, Minha Vida, the government housing program. There are some initiatives taken by the government and some initiatives taken by Caixa. This housing funding will be better equated and dealt with, and the pension product will thus gain more priority in the bank, in the bank channels. If you consider the last quarter of 2024 and this first quarter, if you consider this, we can see this trend, and we believe this positive trend, this optimistic trend towards pension will continue right after these two difficult years, as I mentioned.
Thank you very much. Thank you, Tiago. Next question comes from Guilherme Grispan from JP Morgan. Guilherme, you can go ahead. Good morning, Felipe, Edu, Matheus. Thank you for your presentation. My question has to do with consortium. I would like to ask you about your perspective for this year and the sale of consortium is very strong. Do you expect this speed that we see in the first quarter to continue throughout the year? My second question also made in the previous call, but just an update from you guys. You have very good wins, positive wins from this accrual. We do not see the results of consortium because there is a long-term accrual perspective. For me, it is a little hard to understand the administration fee. What about its normalization?
Can you remind us how we could work with this consortium administrative tax in the steady state as the product gets into this sustainable growth period? Hello, Guilherme. Thank you for your question. I mean, there's nothing that tells us that things will change regarding this situation for consortium. Caixa Seguridade has grown a lot in the consortium, in our consortium growth, more specifically in the housing service. Our portfolio is 60-40, but in the first quarter, there were 73% in housing and the rest in motorcycle and heavy-duty vehicles and so on. This portfolio has a longer duration, more presence of this client within the bank with us. Also, this high SELIC interest rate makes it harder for clients to get access to real estate services because 30%, giving 30% is not easy for everybody.
The idea is to complement the strategy followed by Caixa so we can sell more consortium services meeting our clients' demands. It is another modality we provide to our clients that has been growing in , especially at Caixa Seguridade. Our portfolio started back in 2021. When we talk about share, market share, obviously, we do not appear so well in the statistic, but when you see the volume of sales, it has grown steadily, significantly in a way that provides or that meets the client's demands. With lower rates, we have reduced installments, good consortium rates products that we have launched through these years with excellent penetration and demand in the market. In fact, clients really use this or like this because it makes it easier for them to acquire products and real estate services. Two and three rate is when it is normalized.
We can expect this when the consortium is normalized. That is clear. Thank you. Thank you, Guilherme. The Q&A session is hereby closed. Mr. Felipe, now we will wrap up this meeting. Thank you very much. I would like to thank Matheus and everyone who devoted a little bit of your time to check the results of Caixa Seguridade. It is a very important company to us. When all of you, the investors, shareholders, and clients take part, when you participate, you help us to improve our services, improve the governance of our business. Thank you very much to each and every one of you. I wish you all have a wonderful afternoon, a wonderful day. Take care.