Good morning, and at this time, we would like to welcome everyone to the Porto Seguro third quarter 2021 Results Conference Call. Today we have with us Roberto Santos, CEO and IRO, Celso Damadi, the CFO, Marcelo Picanço, the Insurance Vice President, Marcos Loução, the Executive Vice President of Financial Businesses and Services, Izak Benaderet, the Management Director of Porto Investments, Lucas Arruda, Head of Strategy and Investor Relations. We would like to inform you that this event is being recorded and simultaneously translated, and the slides are available for download at our site.
For English, please press the interpretation button on the bottom right side of your Zoom application to choose audio in English. The slides presented during the call are in Portuguese, but there is an English version available for download in the investor relations website of the company. After the closing of the presentation, we will go on to the question-and-answer session. To ask your question, please use the raise hand icon, and we will allow the participants to pose their questions.
When you begin speaking, please give us your name and the institution that you represent, and ensuing this, please give us your question. The forward-looking statements made during this conference are based on the beliefs and assumptions of Porto Seguro's management, and once again, they are based on information currently available to the company. They involve risks, uncertainties, and assumptions as they relate to future risks and therefore depend on circumstances that may or may not occur in the future. Investors should understand that general economic conditions, industry conditions, and other operating factors could also affect the future results of Porto Seguro and cause results to differ materially from those expressed in such forward-looking statements. I would like to give the floor to Roberto Santos, our CEO, to begin the presentation.
Good morning to all of you, and we would like to thank you for your participation in the third quarter 2021 conference call. We present the main highlights for the period. Our revenues grew 15% in the quarter vis-à-vis the same period last year, with a double-digit expansion in all the business verticals. Besides the revenue increase, we had a positive quarter also when it comes to the evolution of our customer base. In the insurance business vertical, we increased our insured fleet by 419,000 vehicles, obtaining 5.8 million vehicles insured at the end of the quarter.
In life insurance, we had an increase of more than 300,000 lives covered, besides adding 800,000 residences that are insured in our portfolio. The businesses together for the insurance vertical present an increase of 900,000 contracts for the period. The health business vertical went beyond 1,100,000 lives covered, an increase of 18% in health insurance and 12% in dental insurance.
In the financial business vertical, we reached 3.4 million contracts through the expansion of almost 350,000 businesses in the last 12 months. A highlight for the increase of 230,000 credit cards, 6,000 contracts for capitalization and warranties for lease, 27,000 active consortium business, and 27,000 contracts of funding for the period. In the service business vertical, we increased by 53% the number of subscription clients reaching 39,000 contracts. Besides this, we carried out 3.4 million service given to homes and vehicles in the first nine months of the year.
Now, this figure has a potential to continue to grow very quickly by optimizing the management and use of services to third parties as well. Regarding the operating performance, the total combined index reached 95.2%, and the loss ratio consolidated reached 55.3%, both aligned with the pre-pandemic levels. The increase in the loss ratio vis-à-vis the previous year is associated mainly to the return of a greater circulation of vehicles with an impact on the auto business and in health because of the return of elective events and the costs that still relate to COVID-19 events. The default index of credit operations represented by NPL of 90 days was 4.4% for the quarter.
This indicator recorded an improvement of 0.8 percentage points vis-à-vis the same period last year and is below the market average, reflecting a very efficient portfolio management and a positive impact of the measures that we adopted to mitigate risks throughout 2020. The recurring financial result was BRL 64.7 million, with a return on investments of 1.6% for the quarter, equivalent to 127% CDI in the period, through the good performance of our allocations of securities indexed to inflation and partially impacted by variable income assets. We also have a majority stake at present in Atar, a fintech that develops solutions for banking as a service to accelerate the process of digital transformation in the financial business vertical.
Another operation that we announced in November at the close of the quarter was the joint venture with Cosan for the creation of Mobitech to transform the experience of customers with mobility by offering a broader portfolio of solutions. This will be done through a partnership with a relevant player that has a competitive edge that is complementary to ours. I would also like to highlight the recognitions we have received recently. We were awarded as one of the winning insurance companies in the top of mind of Folha de S ão Paulo and by Estadão with Marca Mais.
To close, I would like to thank all of our stakeholders for their confidence and highlight that we continue to work on fronts that will leverage the expansion of the business and enhance evermore the experience of our customers, preserving the focus of value creation for the company. I would now like to give the floor to Celso, who will continue with more detail on the evolution of our revenues for the quarter. In slide number five.
Thank you, Roberto. You can observe the growth of our revenues, and the growth of total revenues for the quarter reached BRL 5.6 million, with a growth of 15.4%. The growth during the quarter was greater than the growth of the nine months, which was 13%. The growth was more accelerated in the third quarter. When we compare the growth of other business verticals at the right of the graph, we see that insurance has a growth of almost 12%, reaching almost BRL 4 billion, compared to BRL 11.7 for the year. Once again, we see that acceleration in the third quarter.
In financial businesses, a very good generation of almost 29% of growth and BRL 1 billion of invoicing for the third quarter. In healthcare, 20% of growth for the third quarter, vis-à-vis 11% for the year. In services, 46%, vis-à-vis 28%. We are underscoring that the third quarter had growth much above the growth of the nine months of the year. In the third quarter, the growth was beyond that of the accumulated growth for nine months. In slide number six, you can see our consolidated profitability that stands at BRL 2 billion. It shows us our resiliency despite the challenges. Of course, when we compare this with the nine months of 2020, we have a drop.
Last year, we had an extraordinary result, especially in the auto insurance portfolio, as well as in the health portfolio, where we had extraordinary gains because of the pandemic that aided and abetted this portfolio. We will be speaking about this, but despite this, we had nine months with a return of 13%. For the quarter, therefore, we had BRL 17 million recurring from the increase in auto insurance and healthcare insurance, more specifically, and because of loss ratios that are more elective.
Once again, this will be explored further ahead. On slide number seven, we show you historical profitability that we present here. In the nine months, we got to BRL 1,011 million 450% over CDI, showing you that this historical profitability is way above the CDI. We got to almost 700% in 2020 above CDI. Now it is somewhat lower, but this shows you that our profitability background is very good. I would now like to give the floor to Marcelo Picanço to speak a bit more about the insurance business vertical.
Thank you, Celso, and good morning to all of you. First of all, I would like to speak about the robust growth that we had this quarter vis-à-vis the previous months, a double-digit growth, especially in the insurance market, where we have price flexibility. In auto, for example, we reached almost 421 additional items. In P&C, 183 items, despite everything that we went through in the pandemic, with an impact on insurance, albeit temporary, and in insured members, 301,000 people covered.
This is because of a not very common combination in a company, a strong scale, intelligence in which we focus with analytics and data to be able to work with our pricing, with segmented and customized solutions, even with the products where we have a strong scale, such as auto and P&C, where we have the market leadership. We always work with something that will set us aside in terms of the segmented products.
We have different brands and products here. Leveraging product innovation. For example, in this period, we launched Vida On, life insurance for online use. It is much simpler, leveraging telemedicine and more convenient services, leveraging our entire network. This is but one example of what we are doing to set ourselves aside in the market. Additionally, on slide nine, I would like to speak about the results per se.
The annual profitability is above 20% of return on capital, despite the variations in loss ratio. With the return of mobility, and some inflation that has had an impact, we had a quarter that was somewhat better, but still below the pre-pandemic levels. We reached a total of combined ratio of 92.8%, below what we had in third quarter 2019, which was 93.2%. Now, the combined ratios were quite low, especially because of the auto portfolio and mobility.
There is a positive factor here, an increase of vehicles when we go forward, the increase in the average premium, which will, of course, lead to an increase in the future. In the accumulated nine months, we have a very robust situation of 90.2% when compared with 93.2% before the pandemic. If we go on to the last slide here, we give you a long-term vision. We know that you like to have this long-term vision for your outlook on our strategy. Since 2017, if we look at the auto portfolio in the insurance business vertical, which has a strong impact on the rest, this is very important for us strategically, and it is a highlight in this period of 18 months.
Based on a comparison of SUSEP, we had a growth of 11.9%, while the market had a growth of 5.7%. In 2017, historically, we were growing 2% more than the market. There has been an acceleration this year, and what sets us aside from the market was what we began doing in 2017, putting us in that position of leadership. Although in the historical average of 2017 to 2020, we do have 9.2 percentage points setting us aside in the loss ratio. This has expanded in the months, eight accumulated months, to 12.8%.
Now, this is a combination of scale, a very competitive pricing, and a mix, which has enabled us to work with a relative competitive gain vis-à-vis the market. Additionally to this, we had very disciplined work that began before 2021 to improve our SG&A and enabled us to gain more competitivity in the market, where we work with very tight margins and price, because the market is very sensitive to purchasing decisions. So here we have that competitive edge that has expanded further. I am not saying that it will always stand at 13 percentage points, but this does explain the market share and the competitiveness that we were able to attain. Having said that, I would like to give the floor to Sami so that he can speak about the results of the healthcare vertical.
Thank you, Marcelo Picanço. A good day to all of you. The healthcare vertical, as mentioned before, had a growth, an increase vis-à-vis previous periods. We have reached 1.1 million year-on-year, 11.2% growth year-on-year. 18% in health insurance clients year-on-year. The highlight here is that beginning in the first quarter of 2021, approximately 10%, and in the last quarter, an increase of 25,000 lives, showing us that in fact the growth has been constant throughout the third quarter and speeding up. In the next page, another topic already mentioned by Celso, the loss ratio. Now, this is because of the return of elective events, which is of course very healthy through time. The lack of elective events in the last few years could bring us a more severe case that had an impact on the loss ratio.
Additionally, what predominates in our operation is that we are in São Paulo, and we are able to follow up on the number of hospitalizations on the cases. As the vaccination progresses, we see a decrease in the number of cases and hospitalizations this quarter already, going from 170 to much lower figures. As everybody knows, as has already been announced in São Paulo, we have not had any deaths in the last few days.
If everything remains as this, if these good news continue on, we can understand that we will have a gradual return of the loss ratio to the normal levels, to a situation of normalcy. It's interesting to highlight the civic issues. We had a loss ratio of 78%, 79%. The loss ratio in this vertical was quite competitive if we compare ourselves with our larger peers.
Now, throughout the period, since the beginning of the pandemic, we can see that it has gone down, it has returned, and throughout the cycle, we remained with the same loss ratio. It is important to bring you that vision throughout the period. It is a more realistic vision than the quarterly vision, which is a one-time effect. We see what happened in the second quarter of 2020, and now. I will now give the floor to speak about the financial business vertical.
Well, here in the presentation, we have separated this into two blocks, the credit products and others. Well, in terms of contracts, we had 3.4 million contracts, a growth of 11.3% year-on-year with 2.9 million. We had a growth in credit cards. We continue on with our strategy of increasing the customer base for credit card.
This gives us an opportunity to present other products in the company. We still have a very strong generation of revenue, 14% vis-à-vis the second quarter and 28% vis-à-vis last year. A highlight to credit card revenues and consortium with a growth of 29% vis-à-vis last year. In terms of the accumulated amount for revenues, it's BRL 1.5 billion compared to BRL 1.1 billion last year.
Our result this quarter was below the BRL 100 million of last quarter because of a specific credit portfolio of vehicles and because of the Selic. But of course, we are following up on this very closely, and we are ensuring that it goes back to its normal levels for the fourth quarter. But this is not outside of anything that we have observed. When we observe the accumulated result, it's BRL 298 million compared to BRL 179 million last year.
If we speak about the credit business, which is a business where we analyze risk and we charge an interest rate to be able to manage this, especially in our credit portfolio, we have BRL 12.5 billion, which is quite important for us. This is where most of our revenues come from, and we are able to monetize our contracts. This portfolio has BRL 8.4 billion of purchases of credit.
We are referring to credit card, BRL 1.4 billion of exaggerating a bit in the revenues of what is paid for in installment with an interest, and a highlight for the funding and loans of BRL 2.7 million in the portfolio. Now, this funding portfolio, part of this refers to vehicles. 90% refers to vehicles. We have grown very well in that portfolio, and we have been the leaders in vehicle funding of almost BRL 1 billion.
Now, the highlights for this quarter is BRL 2.7 million in cards ready to use that are very important for us. This is a short-term measure. Clients that make one transaction per month represent 16% of our revenue, is a very expressive figure. We have an addition of 10,000 credit cards this semester. We have others using other sales alternatives. Total transaction amount of BRL 10 billion this month and BRL 27 billion for the entire year. This quarter, we had 17 million transactions with average values that are quite high and that, of course, aid and abet our revenues. We also had the implementation of our app. We presently have the Super App that brings together the credit card and autos. We are able to present our products in a more organized way to consumers.
We have 90% of our customers who already have financial experience, which points to that opportunity of being able to speak about other opportunities. In Pix, we are leaders, and it represents 20% of payment for credit card. This, thanks to the release of the limits instantly. We are attempting to, once again, enhance the experience of the user that has been very successful, and to enhance the quality of our services and extend this to the financial products as well.
If we look at the characteristics of the credit products, we have financial allocation solutions that have been included in credit because of the analysis that we carry out. We have BRL 19 million in this portfolio that we are able to guarantee. BRL 17 million are allocated to warranty for lease, and we are leaders in this segment in Brazil. During the pandemic, we advanced a great deal with a product that presently refers to 37% of the release that we have in the lease business, and it makes us very competitive with our customers.
We have a portal for the announcement of real estate called Olho Mágico, where we have several partner companies, and we are able to better compete with other solutions for lease. We have 15,000 buildings already registered and several million more to include in the platform. Of course, these are initiatives that enable us to speak about the products that we have in terms of finances. Presently, we have 15% of these active real estate cards and buildings available for lease. In the next page, to speak about capital accumulation business, where the customers make deposits and trust in the Porto Seguro management.
This is extremely important for us, thanks to the profitability and the potential of the market. I'm referring to the consortium, where we have a credit portfolio of BRL 30 billion. It grew 35% vis-à-vis the last year. We have 80,000 clients in the vehicle consortium portfolio and 19,000 in the real estate consortium. An important characteristic that we have identified and that draws our attention is that we continue to grow very well in the sale of the consortium. We carry out a credit analysis. This is what the market does. We have lower voluntary cancellation, which means that we can contemplate ever more clients. This is what gives a positive image to the consortium portfolio. Now, to speak about capitalization that has a unique bias in the market. Basically, it guarantees the lease.
The amount is made profitable, and if there are no debts with the owner, the lessee will receive this money back. This portfolio has had a growth of 27%. Because of this combination of products, we have a range of offerings for the client in terms of lease, and I think we have the most complete portfolio when it comes to guaranteeing the payment of the rent for the landowners. With this, I conclude the financial business vertical, and I would like to refer to the services vertical.
We have been preparing for two years to work with a subscription. We have a broad range of products. We are working with 38,000 clients that have contracted our services for home repair, technical repair and others. We have a revenue of BRL 92 million, with a highlight for Carro Fácil and active contracts at Reppara . Less important than the revenue is the break-even of these operations. Thank you very much for your attention.
Thank you, Loução. A good day to all of you. We're now going to speak about investment performance. For the quarter, we have 1.60%, and it is marked by the excellent performance of our securities indexed to the IPCA. This time, the IPCA is quite high, and we have also made investments in variable income. This portfolio has had a drop of 12%. What is important is that this insurance always is based on a longer term, and the goal is to have a better diversification in our investment portfolio. Regarding our movements for this specific quarter, we had a reduction in our investment.
You'll see that it is returning to the levels of the fourth quarter 2020, and with the new parameters of the CDI rate, this assignment means that we're going to increase our post-fix investments. We had a drop from 6% to 4% in investments in variable income. Then once again, we are impacted by the drop in the Bovespa indices for the semester.
On Slide 18, and this is Roberto Santos speaking to you again, referring to ESG. I would like to present to you some of our social initiatives for the quarter, highlighting some of the projects that are focused on education. In September, the process to return to classes began again. Areas such as IT, beauty, and handicraft, sponsored by the Instituto Porto, and we expanded the programs that increase the employability of our students.
Our project, Entrepreneur School, offers free technical training in sewing and works as an incubator to generate income. We launched a new catalog of products called Coleção Bora Ser Feliz, Let's Be Happy, and the invoicing was returned to the entrepreneurs of the program. Another highlight is the Programa Acao Educa that began to operate beginning in August, bringing back to the classroom 170 children in a situation of vulnerability in the region of Campos Elíseos, which is where we have our offices. The classes have come back with all of the safety protocols against COVID-19, and we have also had remote classes where children are still at home. These have been the main operational, financial, and ESG aspects that we wanted to underscore in our presentation. We can now go on to the question and answer session.
Very well, thank you, Roberto. Thank you all for your presentations. Now for the Q&A session, I simply would like to remind you that you will have to raise your hand using the icon that you see at the bottom of the screen. Before posing your question, please give us your name and the institution that you represent. Very well. To begin with our Q&A session, I would like to ask Kaio Prato to begin with his question. You may proceed, Mr. Prato.
Good morning, gentleman . Thank you. Thank you all for taking my question. This is Kaio Prato from UBS. I would like to speak a bit more about the auto insurance performance. In truth, I have two questions. I will pose the first one that refers to the loss ratio. There was a growth year-on-year, and you mentioned this in the presentation, and this is because of the return of the traffic after COVID. I would like to know that if additionally, to this, you have seen an impact from the FIPE price list or if these impacts will appear going forward in the coming quarters, and which is the loss ratio level that you foresee for the coming year?
Thank you, Kaio. This is Marcelo speaking and thank you for the question. The impact of the FIPE list price is relevant when it comes to vehicles. We have had one of the greatest increases of 20%, the highest in more than 20 years. This will have an impact on pricing. This is already impacting the loss ratio as of now.
Now, looking forward, not only this has been included in our new pricing levels, because when we captured this, well, last year this was not there, but lately it has been included. On the other hand, we see an increase in average premiums that is very interesting going forward. The entire market has a great deal of movement in terms of prices. The increase in average premiums will bring a growth and perhaps a more normal situation.
Perhaps not normalization, because there is a short-term pressure, but all of this will be diluted when it impacts most of the portfolio. Yes, we do have the FIPE price list impact. There will be a normalization of loss ratio. We cannot compare with the year 2020 where we had very limited mobility. The comparison is almost impossible, but we still have a very interesting profitability level for 2022.
The impact of the FIPE price list basically happens for total loss and theft and robbery. The spare part change has been lower. It could have a stronger price increase going forward. This has already been included in the price because of the new dollar exchange, but this has not happened yet. If I could add an important point, this impact on the past portfolio is somewhat softened out by a positive impact in the evaluation of your inventory that can be used for sales. You are assessing this based on the same indices that you use for your indemnity portfolio as well. So, there is a positive look upon the increase in the price list of the FIPE, but we are also looking at our expenses and operating expenses. Thank you.
Thank you very much. Secondly, referring the premiums that you have already mentioned, that is already happening a repricing because of the BRL fee. I would like, if possible, for you to have an overview of what you expect next year, both in the sale of new vehicles and the competitive scenario as a whole. If you have already seen this movement of a higher price in other players at present, and what it is that you expect for the coming year as the scenario will be more challenging, with a higher interest rate that will favor those that are more aggressive. Thank you.
Kaio, first of all, and as a fact, the price increase is already happening and has been happening for the last two or three months. There are several players that have been under pressure. Even during the pandemic, the pandemic did bring about a certain bonus. It was greater for us on the average of the market. The market has undergone a great deal of pressure and is acting quite rationally, which is one of the positive sides. We look upon this with optimism. The market is rational. It has pricing that is being restated because of the FIPE price spare parts and an increase in mobility. On the sale of vehicles, there is an issue of supply. There is a very important demand that would like to buy vehicles, and people are searching for vehicles.
Perhaps because there was a forced saving, people haven't spent on traveling, going to restaurants or services. Now, once again, people want to spend on durable goods. They want to refurbish their homes, and we have had an increase in residential services because of this and this search for vehicles. But worldwide in the supply chain, there is a scarcity of chips, of semiconductors, and I think we will see the true impact of this going forward. We truly can't say which will be the amount of growth in new vehicles, and we're monitoring this with a number of associations, but we are optimistic for the year 2022 in general. This is what I can say.
Thank you. That's very clear. Thank you, Marcelo and Roberto.
Thank you, Kaio , for your questions. The next question comes from Matheus. Matheus, you can proceed, please. Matheus, are you still with us? You can pose your question. Perhaps he had some problem. I will continue with the next person on the list. Antonio Aggie , you can pose your question, please.
Hey, good morning. Can you hear me?
Yes, we can.
Thank you for taking my questions. I have two questions on my side. One referring to healthcare. If you could better explore your strategy, we're highly involved with market strategy of more verticalized players, and some have a semi-verticalization or virtual verticalization. If you could further explore your strategy, that would be interesting. A second point, an update on the integration initiatives of the Porto applications to facilitate cross-selling. You had almost 15 apps at Porto, and how has the cross-sell index evolved? Thank you very much.
Thank you for your questions, Antonio. I will respond to the first part of the question. It's important to speak about the moment for the healthcare vertical. It is a moment to structure this vertical for the growth, a growth that we observe, and for future growth. We have made significant investments in technology, in processes, in personnel, in the commercial area. Significant investments because of this future view that we have of an accounting growth. Now, from the objective viewpoint, to respond to your question, our vision is that this growth will not go through hospitals or outpatient centers.
Well, they are important without this vision of verticalization, but we do believe that the interconnection between different actors is important for this scenario, and what you call the virtual verticalization is also very important. It is based not only on a different model. We have just launched Saúde Mais, which is primary attention, the door of entry to a physician and healthcare. Of course, it is connected into a chain, offering a very good journey to our patient. But we have also made investments in technology in the chain that will take place throughout the period. Now, to complement what has been said and to speak about the app, we have made the first broad implementation for increasing the points of contact with the customer. This will give us more visibility. We have the credit card, the auto, and RE, and the results have been excellent.
We see that we have more than 350 partners at present, and we have called this Super App. In terms of cross-offers that we have attempted to work with, we have three significant launches that are underway so that we can learn what to do in the following implementations. These are available for some customers based on any mobile. There is always a best moment of impacting these offerings, and we have tested this in the cell phone.
We have two additional initiatives, the disconnect card and a consortium. So we are going to, of course, include other products, and we are increasing this. We will have an additional two products until the end of the year. Now what we want to do is allow our customers to have a greater ease of access to this app, offering services directly, and we have done this also in the Super App. Our project is ongoing. It will remain in that fashion until we are able to add new products and new offerings.
Well, simply a follow-up here. Is there a figure of cross-selling that you could share with us if it has evolved, if it is at 1.3 or something similar?
We have gone from 1.3. We are presently at 1.6.
Very good. Thank you very much. That was very clear.
Thank you very much, Antonio Aggie . We now have Matheus. Matheus, if you would like to pose your question, please, you may proceed.
Hey, good morning. Can you hear me?
Yes.
I have two questions. The first refers to your financial results. We have observed a bit of volatility in terms of the results in pension, particularly. What is it that has impacted the results? I would like to understand the dynamic. This is not a very relevant business when we look at Porto Seguro as a whole. It has generated negative impacts on the results. Secondly, the synergies observed with Cosan, which would be the benefits with this new partner, what can be facilitated through Carro Fácil. If you could speak about the share in the business, considering the competition in the segment of car lease and much more. Thank you very much.
Hello, Matheus, this is Izak. When it comes to the impact that pension had, well, basically some of our plans are indexed to IGP-M, and they had an impact, especially in this third quarter. Now, the portfolio that we have for these liabilities was impacted. We have a liability made more sensitive over this index, and everything was impacted by our mark to market. Basically, this is what happened.
Matheus, I would like to speak about the partnership with Cosan announced last week. We carried out a call where jointly we clarified some points, and I would like to clarify that this call is available in our IR site, should you wish to have more details. We based ourselves on the Carro Fácil operation, included this in the operation, and we truly believe in the complementarity of our activities. Cosan has fuel stations. We work with insurance and other products, and jointly, we will begin a subscription service where Porto Seguro is a pioneer. In 2016, it launched the Carro Fácil, and we're going to expand all of these services. We think that this makes a great deal of meaning.
Both of us focus on mobility, and we're also in the field of taking care of people, and we want to have that opportunity of creating a new model of experience for the consumer in the realm of mobility. We still do not know where we want to get to with all of this. We have an enormous avenue that we still have to cross. It's still too early to speak about this. We're still awaiting the authorization of the regulatory agencies.
Very good. Thank you.
Thank you, Matheus. The next question is from Tiago. Tiago, you can open up your audio and pose your question.
Hey, good morning, and thank you. Emerson, can you hear me?
Yes. We could hear you, but all of a sudden, we cannot anymore. You can speak. I think he muted himself, perhaps. Oh, Tiago, we can now hear you well. Tiago, you can proceed with your question. Tiago, I'm not sure you can hear me. You can now pose your question at any time. It seems that we have a technical problem with Tiago. We do have another question here from Guilherme. Guilherme, you can proceed. Please pose your question.
Hey, good morning, and thank you for the call and for taking my question. My doubt refers to something we did not discuss in the financial businesses. I don't know if you have been sufficiently aggressive in terms of your appetite and your growth strategy. There is a concern with the market in terms of the economic cycle, the indebtedness of families at very high levels, and with the increase in interest rates, limited expansion of these salaries, and this is a reason of concern going forward. How are you going to balance your risk appetite for the coming year? Obviously, this is an important vertical for you and the focus has been growth. So how are you weighing this risk going forward? Thank you.
Yes, we follow up very closely on the problem of indebtedness, on default, the problem of inflation, of course, and interest rates. More specifically, we do have a different characteristic if compared to the market as a whole. We have a very large aquarium here, a selected aquarium of clients, so that we can continue to grow. In Brazil, very few people have a car, and of people that have cars, not all have insurance. And very few have insurance with Porto Seguro or other brands, where we have a strong analytic characteristic.
We believe that we can continue to grow and occupy a space that would be an alternative for these more qualified clients, for those clients who still have a slight reserve to burn, not comparable to the bottom of the pyramid. We are going to adjust our collection models. We are going to make price adjustments, but always with a focus on growth. We are going to work with funding that has guarantee, especially in vehicles, where we have broad experience of the behavior of customers and variables that involve the purchase of a car.
We have several businesses that help us a great deal in following up on the macroeconomy. One of these is the credit card. We know where people consume and how they consume, and how they make their payments. We have statistical models that will help us go through this period without moving away from our strategy, which is to continue to grow with attention, with caution, but always with a focus on growth the coming year.
Thank you. Thank you very much.
The next question is from Daniel. Daniel, you can proceed with your question, please.
Thank you. Well, first of all, we have observed a greater share in the sale of used cars vis-à-vis the new cars. I would like to gain an understanding if this will impact or benefit Porto when it comes to the aging of the fleet, or if you will have a greater penetration in used cars vis-à-vis new cars. How can we follow up on this going forward?
This is Marcelo Picanço. Thank you for the question. We have a very large inventory of vehicles, 5.8 million, but this is a transitory phenomenon. We think that the mix will be important in this case. Despite this, we do have solutions for each case. We have a broad range. We have premium vehicles, 0 km vehicles. We also have master vehicles, which are the older vehicles, cheaper vehicles, the more accessible vehicles.
We have vehicles for those who still do not have insurance that work in two different markets. We are well prepared for any change in the mix, but the change in mix, we do not think will be very relevant. Even if it is, we will be well positioned to service this change. It will not impact us. We are not a company that works with niches, although we do have the Porto brand. We are not a company that works based on niches. We have vehicles that can service all the different segments, from commercial to others. Thank you.
Thank you for your answers, and congratulations for the results.
We had a problem with Tiago's audio, but he did send his question through WhatsApp. Tiago is from BTG Pactual, and the question is the following. The premium readjustments in the auto segment, how long will it take to have an impact on your SG&A? Is this for the coming quarter or more for the year 2022?
Tiago, this is Marcelo once again. It depends on the composition of the harvest. We are speaking about 12 different harvests or groups now. To become more relevant, we have to go through more of these harvests. I think this will apply more in the first or second quarter of 2022. In 2022, it is too early to speak about that, so that it will have a weight on the 12 harvests that are part of the same fund. It is still too early.
To complement this, Picanço. Tiago also has a second question that refers to risk and collection models that you have mentioned and the pricing of these models. If the greater use of technology is already helping you, or is this something we will see in the future?
Yes, they are already helping us. This is our work. It is a core competence. It never ends. It is endless. These are new, sophisticated analysis that we continue to do to maintain our competitive differential. All of this leveraged by the volume of data that we have, 5.8 million vehicles. The scale is enormous. If we put it in operational terms, it is a scale that fosters intelligence. This scale helps us to foster intelligence.
We have already applied this, and it generated an enhancement in the relationship between the loss ratio of the group and the loss ratio of the market in the period of the pandemic. Simply to add a point here, all of that technology, the digitation of prices is applied not only to prices, but also in the risk sector. This is a very important factor to have a more appropriate loss ratio.
Very well, and because of the time, we are getting to the end. We will allow for one more question. If anybody has a burning question, please send it to us to gri@portoseguro.com.br. Antonio, you are welcome to pose your last question.
Thank you for taking one more question. Simply a detail, if you could speak about the non-recurring impact for this quarter. Thank you very much.
Antonio, this is Celso. Thank you for the question. This is a cause that we had in our balance sheet. INSS on the share of managers, something that we discussed a short time ago. This is a process of BRL 400 million, somewhat more, that was opened up by the internal revenue with significant discounts, almost 50% of discounts to adhere to the head fees. Now, if we look at the outlook and the jurisprudence that we have been following on, we did decide to adhere, and there was a net impact on taxes of BRL 144 million for the quarter.
Now, we took away some liabilities for possible losses that were part of our balance of a bit more than BRL 400 million. So going forward, we may still have an impact of BRL 400 million. We could have won this cause, but jurisprudence was showing us that the possibility of losing was greater than the possibility of winning. Because of this, we adhere to the head fees with an impact of BRL 144 million non-recurrent. Thank you.
Thank you very much.
Very well. As mentioned, we will now end the question and answer session. I will return the floor to Roberto for the closing remarks.
Once again, I would like to thank everybody that participated in our conference call. I also thank you for your contributions, for the questions, and of course, for your interest in Porto Seguro. Should you have any additional doubts, please visit our IR page at ir.portoseguro.com.br. If you prefer, you can directly contact our IR team. Thank you very much