Sul America SA (SULA11) rose to a four-week high after the Brazilian insurer’s first-quarter profit increased 11 percent, exceeding analysts’ estimates.
Shares gained 0.9 percent to 15.71 reais at the close in Sao Paulo. The benchmark Bovespa index advanced 1 percent. Markets were closed yesterday for a holiday.
Net income was 112.8 million reais ($58.7 million) in the quarter, compared with 101.9 million reais a year earlier, according to a regulatory filing April 30 after the markets closed. The result exceeded the average estimate for an adjusted profit of 107.7 million reais in a Bloomberg survey of three analysts
The results “showed a good expansion in terms of premiums, mainly driven by the health segment,” analysts Carlos Firetti, Rafael Frade and Gustavo Lobo at Banco Bradesco BBI wrote in a report dated April 30.
Sul America’s insurance premiums rose 15 percent in the first quarter to 2.5 billion reais, “benefiting from a robust domestic economy,” among other factors, the company said in the filing.
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