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The insurance units of Brazilian bank Bradesco (NYSE: BBD) posted net income of 931mn reais (US$416mn) in 2Q13, up 5.7% compared to the same year-ago quarter, according to the lender's latest earnings release.
In the second quarter of 2013, insurance revenues grew by 20.9% over the previous quarter, boosted by life and pension plans, capitalization bonds and auto and reinsurance products, which increased 32.2%, 14.5% and 12.9%, respectively.
However, second quarter earnings were virtually unchanged compared to the previous quarter as an increase in claims ratio and a reduction in financial income offset strong revenue generation and the improvement in the administrative efficiency ratio.
The combined ratio worsened slightly to 85.5% from 85.0% in 2Q12.
In the first half of 2013, premium production was up 15.3% from the same period in 2012 led by health, capitalization and life and pension plan products, which increased 23.3%, 21.8% and 12.7%, respectively.
The bank maintained its 12-15% forecast for premium expansion this year.
Technical reserves stood at 127bn reais as of June 30, up 17.9% from the same time in 2012, the release reads.
Bradesco had 42.215mn insurance clients as of that same date, up 5.5% compared to the same time a year ago.
Bradesco Seguros, a unit of Brazil's second largest private sector bank, is the country's leading insurer.