In the conference call about Caixa Seguridade’s results (CXSE3) in the second quarter of 2022, Eduardo Oliveira, the company’s chief financial and investor relations officer, says that the company intends to distribute dividends every three months. Currently, payments are made on a semiannual basis. However, the new dividend distribution frequency depends on the performance of the companies in which the holding invested.
“These companies have been gaining maturity and, as they pay dividends to the holding company, the payment may become quarterly,” said Oliveira.
The CFO recalled that Caixa Seguridade distributed BRL 867 million in earnings for the second half of 2021, representing a payout of 90%. “The expectation is to maintain this historic level of dividends”, said Oliveira. He also stated that dividends for the first half of 2022 must be paid “between October and November”.
Caixa Seguridade’s first semester results have not yet reflected credits related to the Support Program for Micro and Small Businesses (Pronampe). The concessions started at the end of July and Caixa has already made more than R$ 5 billion available under the program. “This will certainly impact credit life,” said the company’s CFO.
“This year we have Pronampe with different characteristics, the main change being that it has become a recurring program, generating greater stability in the granting and issuance of awards”, added Oliveira.
Eduardo Oliveira also said that Caixa Seguridade should also take advantage of the opportunity with moneylenders. “The same way we did in the first half of the year with microcredit. We took out more than 1.2 million microinsurances linked to microcredit and we see Auxílio Brasil for new credit life insurance”, he said.
Oliveira reinforced that they are credits with a lower ticket. “Of course, the effect is more incremental than something that will be determined for the credit life in the second quarter”.
Stock rose more than 7%
CXSE3 shares closed up 7.78%, at R$9.28. In the second quarter of 2022, Caixa Seguridade recorded a net income of BRL 680.8 million, 59.6% more than a year ago. According to the company, it was “the best historical result achieved by the company for the third consecutive quarter”.
Itaú BBA highlighted the new brokerage structure of holding, which contributed to a 92% growth in revenues from the distribution business (R$ 411 million in the quarter). Financial results improved, following the rise in interest rates. The numbers surpassed the projections of the BBA, which has outperform (performance above market average) for CXSE3 and target price of BRL 8.80.
Credit Suisse also classified the results as solid, drawing attention to the company’s profitability, driven by a new business model, with its own brokerage and improvement in the performance of subsidiaries. The house has an appraisal outperform and target price of BRL 10 for CXSE3 at the end of 2022.
Bradesco BBI highlighted the positive operating performance, mainly in the life insurance segment. For the analysis team, the CXSE3 paper is likely to reduce its discount in relation to BB Seguridade (BBSE3). For now, BBI continues with a neutral assessment of the paper and a target price of R$7.
UBS BB forecasts a 35% growth in the company’s earnings per share in 2022, supported by higher revenues in the segment premium, better claims rates and financial results. The numbers should also reflect the company’s restructuring. UBS has a buy recommendation for CXSE3, with a target price of BRL 11.
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