Good afternoon, and welcome to the Caixa Seguridade conference call to discuss the results of the first quarter 2022. After the brief statements of the executives, we will start the question and answer session initially for analysts and investors, and subsequently for the journalists present, at which time further instructions will be provided. This event is being broadcast via webcast and can be accessed on the company's website at www.ri.caixaseguridade.com.br. Those participating in the event through the webcast will also be able to send their questions on the platform, and they will be answered by the management during this conference call or by Caixa Seguridade's investor relations team after the end of the conference call. Before proceeding, I would like to reinforce that the forward-looking statements are based on the beliefs and assumptions of the management of Caixa Seguridade and the current information available to the company.
These statements may involve risks and uncertainties since they relate to future events and therefore depend on circumstances that may or may not occur. Investors, analysts, and journalists should take into account that events related to the macroeconomic environment, the segment, and other factors may cause the results to be materially different from those expressed in the respective forward-looking statements. I would now like to give the floor to Ms. Camila Aichinger. Please, you may start.
Hello, good afternoon, everyone. I would first like to thank everyone for being here in our earnings presentation first quarter 2022. We have Eduardo with me, CFO, who's going to explain the results. We're going to start by talking about our highlights. 2022 is the year everybody will start seeing more clearly our restructuring. We start the year with brokerage, transition burn, and portfolio products of what we've developed with our participation in the insurance highlights. We continue with private pension quite well. Growth in contributions from 14.5% regarding first quarter 2021 and 21.9% in our reserves, reaching BRL 116.7 billion in reserves. We highlight the issued premiums for life, BRL 473 million, a growth of 7.8%, and also a growth that quite significant in the customer base.
In a year, we grew by almost 30% the number of customers in life in our counter. For home, we're BRL 165.2 million, 6% growth, so 1 million group policies in insurance for home. Our credit letters Consórcio is quite emblematic what we did in the quarter. We were not confident as to what we were delivering before. We redesigned the product. We launched the credit letters, the consortia. Following that, in Agro, we had a great growth of 543.9%, totaling BRL 2 billion in the first quarter 2022, against BRL 350 million, which was accounted for in the Caixa counter, OTC. When we invest in a product with the experience of customers and delivering with correctness, we attain excellent results.
Revenues from brokerage, the broker has its own growth 67.7%, and all that bringing net income that is record-breaking historical quarter. First quarter of the year is different because we know in the bancassurance in first semester of the year has a slight slowdown. We have a growth of 29%, and we have the net income of BRL 557 million. Within our strategic implementation, our sales team has started having the Caixa Aqui correspondent. From lottery units, we had a growth of 6% compared to the end of 2021 when we implemented it. They had a great growth in the credit letters. Home, we reached 1 million policies sold by the new partnership, Caixa Residencial, since the beginning of the operations.
We've also launched a product of assistance on the counter, Rapidex, the only one in bancassurance. We managed to get over 2,000 lives in March. We managed over BRL 4 million in revenue. It's an assistance product with fast sales and executive tellers, lottery, sort of low-end and retail. Credit letters, we had a successful experience where we actually launched the portfolio with heavy vehicles, which actually led to greater income. In credit life, we've been diversifying the portfolio with microcredit, especially regarding rural credit. In rural credit, something we did not do. In 2021, we had BRL 2 million in the product, and here we generated over BRL 24 million in the first quarter.
It does not reflect the full potential. We had a product very much linked to insurance, different ways, especially in DPS. It was not geared to this audience. We remodeled it in mid-March, and we now have BRL 24 million in premiums and we have also Credit Life in Caixa Tem. We launched a product onto each month. In the three days, we sold 27,000 policies in Caixa Tem with ticket average of BRL 80 million. Dividends, we have high payout, 90% of adjusted net income distributing BRL 887 million in dividends.
On the next screen, we always make a point about bringing our social initiatives. With our companies, what we have core in each company, actually, we had in the savings bonds, we had in life insurance, healthcare assistance, and Caixa Residencial, we went to the community in São Luís, Jardim Ibirapuera, São Paulo, to have disinfections of the water, cleaning water tanks, especially raising awareness through lectures to the community regarding the dengue mosquito. I hand over to Eduardo Oliveira, our CFO, to continue the presentation. Thank you, Eduardo.
Good afternoon, everyone. On slide seven, we have some financial highlights. In the first quarter 2022, operating revenues reached BRL 727 million, presenting a growth of 39% regarding same period 2021. Highlights to commission revenue, 78% higher than the first quarter 2021. We had net income of BRL 557 million, first quarter 2022, which accounts for the best quarterly result historically, as Camila mentioned, a growth of 29% regarding the same period 2021, 2.1% compared to the last quarter 2021, which was the best quarter until then. Results of our first quarter reflects the growth of the operating results and financial that we managed to attain this period. ROE was 41.2, 6.2 percentage points above, and 2.4 percentage points calculated fourth quarter 2021.
The variation between first quarter 2022 and 2021 is a result of the accumulated results of the company in the past year. If we consider payment of dividends of in April of BRL 887 million, removing this amount from our P&L in March, ROE would be about 45.3%. Next screen, we show commercial performance by line of business. Risk business group that are considered insurance and assistance service had a positive highlight in the volume of premiums for life and home, in addition to the assistance growth. In total, reduction comparative of first quarter 2022, same period, 2021, is explained especially due to the drop in this area of credit life. Accumulation, we have private pension and also credit letter.
We had the total growth with a growth of 11.7% in the first quarter compared to the same period in 2021 for private pension and also premium bonds and fundraising. In the case of the credit letters, we have this 553.9% in the credit letters sold on the counter, first quarter, over BRL 2 billion, have not actually affected the collected amounts. That should be calculated once we close everything next quarter. Regarding distribution business, total commission received of BRL 357 million accounted for a growth 67.7% regarding the same period in 2021 because of the new compensation structure derived from the restructuring. I highlight the growth of the brokerage was due to credit letters, which is the reflection of the high-end sales of credit letters.
The next slide, we have various business with risk business. First quarter 2022, operating revenue had an increase of 7.5% regarding first quarter 2021, totaling over BRL 1.9 billion. While the loss ratio regarding the same period 2021 had a 2.2% reduction, showing the number of claims gained. In comparison to the fourth quarter 2021 loss ratio, first quarter presented advances of 2.2 percentage points effect caused by the increase of claims in home, reinforcing with an expectation of historical pattern in the company when considered the version without the effect of catastrophic losses. We see a loss ratio close to the historical level and close to the curve of loss ratio considered during the pandemic and the one without or ex-COVID claims.
That is the proportion between the cost of acquisition and premiums resulting 21.1% regarding the first quarter, 0.4% compared to the last quarter last year. Reflection of the different portfolio with increase in life regarding credit letters, the operating margin regarding first quarter 2022 with the first quarter 2021 had a growth of 12.5%, in fact, resulting from the benefit of volume of premiums and loss ratio and the differences between the two periods. In comparison to the fourth quarter 2021, the growth was 2.2% is related especially because of the reduction in operating expenses. In this context, the risk business is almost 60% of the operating margin of our business in Caixa Seguridade. On slide 10, we talk about accumulation business.
For private pension reserves until March 2022, so we had BRL 116.7 billion. We had a yearly growth of 21.9%, an increase of 6.3% regarding late last year. The premium bonds traded in the first quarter of 2022 had BRL 2 billion in the country, and that has an increase of 101.4% compared to 97%, apologies, compared to the first quarter last year, and 78.7% compared to the fourth quarter of 2021. We also highlight the improvement in average administration fees that had reached 17% and set 18.8% a year, first quarter 2020. We had our businesses maintaining the general margin with 24% contribution to the total margin. Moving to the next slide on the operational performance of distribution business.
We had total commissioning and receiving of BRL 337 million, accounted for a growth 67.7% regarding same period 2021. In the composition or commissioning breakdown for distribution businesses versus t he incentive fee was accounted for 16% of total revenue, whereas cash service accounted for 14%. We should observe here that this management calculation considered distribution co-cost for life, private pension, and also credit letters and other segments. For the other costs, the costs are paid by our brokerage house. Operating margin, the value of 2021 had a high of 45.1% regarding the same period last year. In terms of representatives in distribution business total margin, we see a growth of 3.3 percentage points between the first quarter of 2021 and first quarter of 2022. On slide 12, we see some important indicators for the company in the first quarter of 2022.
The administrative expenses ratio that calculates the representativeness in percent terms of the administrative expenses with taxes regarding earned premiums and revenue that we get with the reinsured, we had 11.1 percentage points and 1.2 percentage points compared to the fourth quarter, or 1.4 and 1.2 respectively. The increase as well as greater representativeness of IDA in our results results from internalization of processes, those processes that were conducted in a shared way with partners and now are going to be carried out independently, generating transitional gain, of course, until we get gains of scale. Combined ratio calculating representativeness of operating costs that are total regarding earned premiums and revenue with products and also other savings bonds and the varied, in addition to these variables, considering the variable.
Although financial costs had a growth of this quarter of 2% regarding the first quarter of 31% and regarding the fourth quarter 21%. In this case, the high of the indices or ratios is explained by transitional changes in internal expenses with shared services that are no longer services and also acquisition costs because there is more stake or higher stake in life in the total breakdown. With that, I close the performance of the first quarter of 2022, and we're going to start the Q&A session. Thank you very much.
Thank you. Now we are open for questions initially only from analysts and investors. At the end of this stage, we will open for questions from the journalists present. Therefore, if analysts or investors have a question, please press star one on your phone now or anytime after this announcement. If at any time your question is answered before it is your turn, please press star two to exit the queue. When you ask your questions, we would ask you to speak close to the receiver so that we can hear you clearly. Our first question comes from Caio Prato from UBS Bank.
Good afternoon, everyone. Good afternoon, Camila, Eduardo. Thank you for the opportunity of asking a question. I'd like to ask about the performance of credit life. If I could, I would like to break it down. First, looking at performance excluding PRONAMPE, there was a decrease in 13% there, PRONAMPE. I'd like to understand the reasons for this drop, how you see the part of credit in Caixa today, how this can impact your growth from now onwards. The second part is regarding PRONAMPE. There was a program recently announced that you can get up to BRL 50 billion credit this year. When should you see the offer of this line? What this could bring in terms of upside to you in this segment as a whole? With that, can we see a growth in premiums year-over-year in the next quarter and also in 2022, the whole year? Thank you.
Hi, Caio. Thank you. Let me talk about the area of credit life. We had a drop of 3%. Let's see what was higher in the lines that we have, lending. We had a drop of 15%, so we can maintain it. That's not the point. It's credit itself. This is why we're taking the other opportunities, especially rural. You're correct. We have an expectation, PRONAMPE. We just have the manager of GO to actually regulate that, what we have on the market, and we have the expectation of having the same participation that we have in 2020. We had greater stake in the market and considering that the OTC understand that. They understand cross-sell. We never dropped that cross-sell increase in credit. We obviously have opportunity for growth in this area of credit life.
We're planning. This is what we intend to do for this year. For the first quarter, because of interest rates and the drops that we had in terms of credit, it was a bit heavy. We know we have the rural area that is large to come and eventually PRONAMPE. It's been approved and we are actually going through regulation. With all the changes that we made in the project, and especially in the area of agro, we never had a policy of BRL 1 million. Our policies were also consigned. We had it. We've already had it with the change that we had. We're expecting a change in the product. This generates a great opportunity to us over the year for us to go to Caixa Seguridade.
Okay, just a follow-up. If you can talk about how do you see the credit appetite for Caixa today ex-PRONAMPE, if this is stronger or weaker regarding last year.
Yes, we have appetite for that. Everything that we have in terms of budget, Caixa is a budget in all lines. We're talking about SMEs and micro companies, even ex-PRONAMPE. We are remodeling the portfolio, so we have other things that are going to happen in the next few months, but the appetite of Caixa is growing on all lines.
Perfect, Camila. Thank you very much.
The next question is from Antonio Ruette from Bank of America.
Good afternoon, everyone. Thank you for the opportunity. I have two points on my side. Talking about the commercial area, follow-up regarding the credit line for lending. If you can give us some clarity regarding cancellations over the first quarter this. The second point on home insurance. Seeing that it's been great focus in the past, in sales programs. Now we see that the home insurance is growing quite a lot in line with the housing portfolio. If you could, further elaborate this area of lending and also home insurance, it would be great. Thank you.
Good afternoon, Antonio. A perfect question. As Camila said, the main driver for the first quarter was a credit that was slightly weaker early in the beginning of the year. That is common. Cancellation is something that we try to improve. What we have been following, Antonio, is a reduction in also credit cancellation over the period. We see this in the beginning of the second quarter. Month by month, we see the level of cancellation that is smaller regarding the previous months, which to us is quite reassuring regarding the behavior of this variable for the year. Okay, Antonio?
Antonio, let me follow up on the home insurance. We've had a growth of 6%. What we've been doing, not only in housing, I know it seems different from housing. We're adopting other measures to get other bases of the Caixa customers. We started the first quarter 2021, we had 1,000,466 in home. We now have a growth of 23%, and we've increased not only the number of clients or customers. We have pluriannual plans, and we have easier access to credit or to insurance. In the past few months, we've invested a lot in this strategy, considering that home had a significant growth providing offers that reduce the sales effort upfront, that increases the customer base.
Especially what we've been doing is a large campaign so that people try out our products through a system they see value and can stay with us. Our history here, we've always told you a lot, and we made a first sales and people would not have the upsell or anything 23% of growth on the customer base that have this product, and if we make over 50% with easier renovation, over time, we'll see a change in levels in the home issue. We have 1 million policies in a year in this product.
Cool. Thank you. Very clear. If I can ask a second question regarding private pension. We see contributions growing at a pace that is quite fast. I'd like to know the growth in customer base on this product, having a bit of a color as to the private pension product within your customer base. Just to understand a bit like that.
On this product, we had 10% growth, and in this product we had 1.6-1.7 million. We have 1,830 customers in private pension. What we've done also is work with customers that were already customers to have more funding to work the portfolio better because we have a very reduced portfolio. In the September, October, increased the portfolio. We started working on the customer base. We started towards the end of year to increase the customer base, and now we start with strategies both of transferring and also expanding the base also in the private sector. It's completed a year at Caixa. We worked a lot on the customer base. We had no increase in the customer base. We believe that now we are able to obtain this result in creating this segment within Caixa.
Very clear. Thank you, Camila. Thank you, Eduardo.
The next question comes from the webcast, and it's from Paulo Bissan. Hello, good afternoon. Congratulations on your results. Do you have any forecast of dividend distribution now or only after closing second quarter 2022?
Good afternoon, Paulo. Thank you for your participation. Well, actually, as it's been mentioned at the presentation, in April, we distributed BRL 887 million in dividends regarding the results of the second semester last year. Today, Paulo, our dividend payout is only twice a year. We would pay the next dividends once we close the second quarter, as you've asked. I think it's important to mention is that our expectation is that according to the greater maturity of our new companies and dynamics of the broker becomes more established, we will analyze the possibility of perhaps paying dividends quarterly. This year should not happen because we depend on certain points related to the holding liquidity, the fund flow for companies, from companies to the holding, and our reserves for the payment of dividends.
The next question is from the webcast. The strong growth according to the company in the area of private pension, what about the redemption rhythm regarding reasons?
Let's start from, back to front. As to redemptions are in line with what we have designed. We have 80% in terms of ratio used to actually pay off debt. As to our reserves, why can we grow so much? Because we have qualified sales. We have carried out training to all the team that provides private pension. We are very close to customers. Caixa's customer is loyal with average timing of relationship that is quite high. I think all the qualification that we invested last year shows qualified sale and customers staying with us, trusting what we are being, what we are delivering, and what is being offered.
We have a question from Antonio Ruette from Bank of America.
Hi, everyone. Thanks for taking another question from me. Two points I'd like to further explore. One is about the loss ratio. We've seen in this quarter loss ratio close to the historical level. I'd like to understand if we have any other moves or whether we should see a different number for consolidated over the year. A second point, which is actually the credit letters. I'd like to understand if you have a new level of credit letters or if there has been a new effort that would be something totally new. Thank you.
Okay, Antonio. Speaking of the loss ratio, actually, as it's been following this trend back to normality, first quarter we still, in our view, it's still at a level that is a bit higher than the historical one. We see quite clearly a movement of reduction in loss ratio. Once we see loss ratio at Caixa Seguridade, it should convert in the forthcoming quarters to a level below 25%, okay, Antonio. We don't have any point that deserve being highlighted regarding this behavior of the first quarter, in addition to actually confirming an expectation we have that the effect of the pandemic actually are in the past and are not going to impact the results of a company in 2022 the way they've impacted the company in 2021. Antonio, regarding Consórcio or credit letters, this investment is a new strategy.
What we can expect is that from then onwards, because we have new groups, actually, we have not had sales of groups underway. That happens very much in marketing strategy, you know, from that on. Heavy vehicles strategy was launched only in mid-March, so in this quarter I do not yet have this product in the three months, only mid-March. What we can expect in terms of credit letters or Consórcio is actually a position of standing out in the market in an even greater market.
Well, thank you, Camila. Thank you, guys.
The next question is from the webcast. Is there any novelty regarding disinvestments or the investors the company announced in non-strategic partnerships?
We've moved forward in some conversations that are going on, we need governance. Well, you should have some novelty at the end of first semester. Perhaps we'll be able to bring you some more light in this area.
The next question is from Wesley via webcast. Good afternoon. CXSE3 intends to increase the free float in the future?
Good afternoon. Actually, our free float is 17.5% of our capital, and we have a goal in the mid- to long-term to reach 25%, which is the level expected for companies in the Novo Mercado. Obviously, this is a decision that is not only up to the company, it is a decision of our controller, of Caixa Econômica Federal, and at this point, there is no indication by our controller to Caixa Seguridade regarding a possible follow-on process that could lead to the increase in the free float at the moment.
The next question from the webcast is from Alexandre. Good afternoon. The consolidated commission index reached 21.1%, coming from 20.6% in the fourth quarter, 2021. In addition, the premiums in our consolidated grew about 2% every quarter. However, there's been a drop in consolidated commission revenue. Could you clarify the reason for this mismatch? Thank you.
Sure. Good afternoon, Alexandre. Actually, this revenue is very sensitive to the mix in the sales of products. What happened in this quarter was an increase in the sales of life insurance, especially with monthly payment, that influences this distributional breakdown. The commission will always vary according to the mix of product sales, but being very close to this level that has been moving about in the past few quarters.
Analysts and investors, if you wish to ask questions, all you have to do is to press star one. Once again, if analysts or investors wish to ask a question, all you have to do is to press star one. Now we end the session of questions and answers. I'd like to invite Mrs. Camila Aichinger for her final remarks.
I would like to once again thank you all for your participation with questions. If you have further questions, we're always available at the company, and say once again that we believe in what we are building. 29% growth is not trivial. Thank you very much all the companies that are part of Caixa Seguridade, especially our controller, Caixa Econômica, who provides this counter that is so rich to us. Thank you very much, and I wish you all a very good afternoon.
This concludes today.