The Point for Latin America

Research evidence excerpt

The Point for Latin America

Point |

Friday, 10 July 2026

Top Call | Company | Industry | Strategy & Economics | Global | Key Rating and Target Price Changes

Top Call

Latin America Insurance - Multi-Line - 2Q26 Preview: CXSE Leading Through

Resilience

Our core view is unchanged: premium growth should remain challenging across

most segments, while claims ratios continue to be well controlled. The highlights

within our coverage: a weaker financial result at BBSE due to index mismatches at

BrasilPrev, while CXSE should once again deliver resilient earnings, supported by

favorable mortgage insurance trends. Porto continues to benefit from healthy

fundamentals in its core insurance businesses, although credit operations remain

a headwind. At IRB, stronger international operations and solid financial income

should continue to support earnings growth. Finally, Quálitas is likely to face

greater pressure from the competitive environment in fleet insurance, alongside

higher claims ratios driven by uncertainties related to the VAT implementation.

Gustavo Schroden | Arnon Shirazi, CFA | Brian Flores, CFA

Company

LATAM Airlines (LTM) - June Traffic: Weak Demand Response to Higher Fares

and Capacity Growth

LATAM's passenger traffic looked weak in June. Although capacity finished 2Q in

line with our estimates and expanded as implied in our weekly tracker, demand

lagged capacity even more than in previous months. As a result, load factors

dropped meaningfully and against normal seasonality, falling below historical

average and closing the quarter lower than we expected. Although such weakness

looks negative, this looks like a market's response to higher airfares, given that

LATAM maintained strong 2Q capacity growth post-fuel shock. Additionally, it's