BTG Pactual highlights insurance sector and receives Susep authorization

BTG Pactual has identified the insurance sector as an undervalued segment in the Brazilian market. The investment bank notes that stocks such as Porto Seguro, BB Seguridade, Caixa Seguridade, and IRB have historically outperformed the Ibovespa and CDI, yet they remain neglected by many investors.

BTG Pactual highlights Caixa Seguridade as a preferred option due to its connection to long-term housing insurance contracts, which provide high predictability. The bank forecasts a profit growth of approximately 10% annually between 2027 and 2029, with an expected dividend payout ratio of 90%.

In a separate regulatory development, BTG Pactual has received authorization from the Superintendency of Private Insurance (Susep) to operate as a Special Purpose Insurance Company (SSPE). This allows the firm to issue Insurance and Reinsurance Risk Letters (LRS), a move designed to transfer risks—such as those related to catastrophes, agriculture, and financial guarantees—to capital market investors.