Brazil Financials: 18th Citi Brazil Equity Conference: Non-Banks Takeaways – Preference for Insurers

Research evidence excerpt

Brazil Financials: 18th Citi Brazil Equity Conference: Non-Banks Takeaways – Preference for Insurers

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18 Jun 2026 18:04:26 ET │ 16 pages

Brazil Financials

18th Citi Brazil Equity Conference: Non-Banks Takeaways – Preference

for Insurers

Gustavo Schroden AC

CITI'S TAKE +55-11-4009-5858

We gathered eight names from our non-banks coverage for the conference. gustavo.schroden@citi.com

Overall, we sense a preference among investors for insurers, given their AC Arnon Shirazi, CFA

resilience in high interest rate environments. On the other hand, there is

lower interest in capital markets, due to the lack of clear triggers. In +55-11-4009-7906

payments, we are seeing greater risk aversion, driven by challenges in TPV arnon.shirazi@citi.com

growth and negative impacts on financial expenses stemming from Brian Flores, CFA

expectations of higher interest rates. +55-11-4009-2842

luis.brian.flores@citi.com

Preference for Insurers — Starting with BBSE, rural premium growth remains

challenging, although there could be some pressure from El Niño in 2H. PSSA is

signaling another positive quarter, with auto premium growth despite some

pressure on loss ratios; on the other hand, health loss ratios could surprise positively.

At IRB, discussions revolve around growth opportunities (international reinsurance

and new local insurers), while also maintaining a focus on expenses and efficiency.

Muted Capital Markets — At B3, equity ADTV decelerated in 2Q. The CEO transition

does not change the company’s strategy, with potential competition entering

around 2027. XP is pivoting toward corporate banking, focusing on SMEs in a more

cautious environment. DCM activity is expected to be weaker in 2Q, but with a more

positive outlook for 2H.