Caixa Seguridade Participações S.A. (CXSE3) Earnings Call Transcript & Summary

Good morning, everyone. Welcome to Caixa Seguridade earnings call to discuss the results for the first quarter of 2026. Please note that this conference call is being recorded, and a replay will be available on the company's website at www.ri.caixaseguridade.com.br, where the presentation will also be available for download. [Operator Instructions] Joining us today are Caixa Seguridade CEO, Gustavo Portela; and the company's CFO and Investor Relations Officer, Edgar Soares. I would now like to turn the floor over to our CEO, who will begin the presentation. Gustavo, please go ahead.

Thank you, Matheus. Good morning, everyone, and thank you for joining Caixa Seguridade's earnings presentation. First of all, I would like to extend a special thank you to the company's employees, the teams of the other groups, companies and Caixa itself together with its highly committed and dedicated sales force. It's important to recognize and acknowledge that all of you are part of the solid results that we are about to present for this quarter. Thank you. On Slide #3, I would like to begin by highlighting the commercial performance of 2 business lines that are directly connected to Caixa's core business, housing finance. Throughout the first quarter of '26, mortgage insurance posted a record volume of written premiums. We maintained our market leadership with consistent growth driven by the product stacking characteristic, which follows the expansion of the bank's mortgage loan portfolio. We closed the period with nearly BRL 1.1 billion in written premiums, representing 13% growth year-over-year. It's worth highlighting that in March alone, issuance volumes of cash residential mortgage insurance surpassed the entire runoff portfolio, which consists of mortgage insurance policies sold through 2021 that are still active. In home insurance, we reached nearly BRL 283 million in premiums during the quarter, representing growth of 5.5% compared to the same period last year. This performance was influenced by the strategy of offering bundled home insurance linked to mortgage finance. Although, this approach has some impact on short-term growth, it ensures more resilient, predictable and sustainable long-term results. Bundled insurance represented 12.7% of total insurance during the quarter, a growth of 30% year-over-year. Still within this context, I would also highlight the nearly 7% increase in policies with terms longer than 8 years compared to the first quarter of '25. These policies now account for 41% of written premiums in the quarter. Moving on to Slide #4. I will now discuss the performance of our Private Pension and Premium Bond segments in this first quarter. Private Pension initiatives focused on inflows and retention contributed to net inflows of BRL 1.3 billion during the period. This quarter, we surpassed the milestone of BRL 200 billion in reserves, representing 15% growth over the last 12 months and consolidating Caixa Seguridade among the leading private pension operations in Brazil. This performance reflects a consistent trajectory over the past few years. It's very important to note that, just over 4-years, the company doubled the volume of reserves under management, reflecting a long-term strategy and a portfolio designed to meet customers' different needs in life stages. With nearly BRL 543 million in funds raised, we posted our best Premium Bonds performance for the fifth consecutive quarter, representing a growth of more than 20% year-over-year. This result reflects our strategy focused on monthly payment Premium Bonds. During the period, we implemented the redemption and resale functionality, making the process more agile, integrated and strategic, generating efficiency gains, both for the sales force and for the customer experience. Moving now to the quarter main highlights. I would like to begin with the milestone reached in March of BRL 50 billion in credit letters portfolio. This level reinforces the product's strong performance, driven by the current high interest rate environment, which positions the product as an attractive alternative to traditional financing. In addition, at the end of April, we celebrated the fifth anniversary of the company's IPO, with shares listed on B3 Novo Mercado segment. Throughout this period, Caixa Seguridade has built a consistent track record of growth, resilience and continuous value creation for shareholders, distributing nearly BRL 16 billion in dividends. These results demonstrate the strength of our business model as well as our ongoing commitment to execution excellence, transparency and high governance standards. Finally, I would like to highlight the achievement of the ABNT Women Gold Seal in the area of fighting violence against women, a recognition that attests to the maturity and the robustness of policies, practices and initiatives implemented to promote a safer, more inclusive organizational environment aligned with human rights principles. To conclude this first part, I will now go over the company's main indicators for the quarter. With the highest quarterly result in our history, net income of BRL 1.1 billion, representing a growth of more than 13% compared to the same period of 2025. ROE closed March at close to 66%, an increase of 7.3 percentage points, pps compared to March 2025, highlighting the company's strong efficiency in generating results. Finally, yesterday, the Board of Directors approved the distribution of BRL 1.05 billion in dividends. This amount corresponds to approximately 92% of net income recorded during the quarter, keeping our payout ratio above 90% and reinforcing the company's commitment to value creation for the shareholders. I will now turn the floor over to Edgar Soares, who will continue the presentation with more details on the company's financial and commercial performance during the first quarter. Edgar, please.

Thank you, Portela. Thank you, Matheus. Thank you, everyone. I will now present more details regarding the company's financial, commercial and operational performance. On the next screen, we present a summary of our financial performance. It's important to note that, the figures shown here are presented on a managerial basis in accordance with IFRS 4. I'll start with operating revenue, which reached BRL 1.5 billion Q1 '26, representing a growth of 10.3% year-over-year. Out of this amount, 59% corresponded to revenues from equity investments with performance 18% higher than the previous year. The remaining 41% of operating revenue came from distribution business, which grew 1% between periods with highlights from Premium Bonds segment up 30% as well as mortgage insurance that went up 14% and home insurance growing by 8%. As Gustavo said, managerial net income reached BRL 1.1 billion in this first quarter, representing growth of more than 13% compared to the first quarter last year, under an accounting view, net income increased 9.5% between periods. With that, the company achieved an ROE of 65.9%, representing a growth of 7.3 pps compared to Q1 '25. This increase was mainly driven by stronger operating and financial results for the company. Moving on to the next slide. Let's discuss the commercial performance of the company's insurance business vertical. We begin with written premiums, which totaled BRL 2.5 billion during the quarter, highlighting mortgage and home insurance, both of which continue to show solid growth trajectory. Mortgage insurance reached BRL 1.1 billion in written premiums, representing a growth of 13% compared to the first quarter last year, reflecting the expansion of Caixa's real estate loan portfolio. Home insurance in turn posted a growth of 6% between periods, reflecting the success of the strategies Gustavo discussed earlier. I would like to highlight the increase of 104% in auto insurance sold through Youse. Our focus on consistent and sustainable results remain one of the pillars of Caixa Seguridade's strategy. In this regard, in Q1 '26, the monthly payment and modality in life insurance accounted for 74% of total insurances. Although, premium volume for the product was stable with premiums, the dynamics tend to increase the pool of insurances over time and is reflected in the 4% growth in earned premiums. It's also important to note that the number of customers with the product has continued to grow consistently over a year. Credit life insurance posted growth of 19% compared to the previous quarter, reflecting the increase in eligible credit originated at Caixa. This recovery also benefited from the beginning of the pilot offering launched at the end of February, Caixa's internet banking digital journey, with the offering of unemployment protection insurance at the time payroll deductible loans are contracted. During the quarter, this model generated BRL 15.6 million in written premiums. Expansion of channels such as this one allows us to broaden the base of credit eligible for the product, which continues to be impacted by high interest rate levels that reduced customers' purchasing capacity. As a result, on a year-over-year basis, premium volume declined at 21%, reflecting not only lower volumes in rural credit and corporate credit operations, but also the suspension of offerings linked to the social security payroll deductible loans at the end of '25, which remained this year. In the chart on the right, we can see earned premiums, which grew 6% in Q1 '26 compared to Q1 '25, reflecting the resilience of our business supported by long-term products. Moving on to the next screen. I will now present some operational performance indicators. Loss ratio for the quarter came in at 22.5%, improving 2.1 pps compared to the same period of '25. This movement reflects improved indicators across all insurance lines, driven by lower claims volumes and credit life insurance and lower assistance service expenses in the home insurance segment. As for the commissioning ratio, the dynamic remained within historical levels, with an increase of 0.7 percentage points year-over-year, mainly reflecting the product mix. Regarding operating margin, growth during the quarter reached 13%. The performance reflects higher earned premiums in addition to improved loss ratio indicators. As a result, the insurance business vertical accounted for 47% of the operating margin, maintaining a level similar to that one observed in Q1 '25. On the next slide, we present the performance of the business within the accumulation business vertical. Starting with private pension, gross contributions totaled BRL 6.7 billion during the quarter, a decline -- a decrease of 5%. This variation was influenced by the IOF tax applied this year to PGBL contributions above BRL 600,000. It's worth highlighting that the net inflow remained positive, totaling BRL 1.3 billion during the period, driven by mobilization of the sales force and incentives focused on inflows and portability result. As a result, we closed Q1 with BRL 206 billion in reserves, representing a growth of 15.6% compared to Q1 '25. Moving on to premium bonds. This quarter, we once again renewed a record funds raised totaling BRL 542.1 million. This result represents a growth of 28% year-over. Premium bond reserves reached BRL 3.6 billion, representing 37% growth over the last 12 months. Finally, in this first quarter, BRL 5.4 billion in credit letters were sold. This performance contributed to the expansion of the portfolio, which surpassed BRL 50.9 billion, representing a growth of more than 39% compared to Q1 '25. To discuss the accumulation business. Operating revenue totaled BRL 969 million during the quarter, representing growth of 7.5% compared to Q1 '25, increases across all segments. Operating margin increased 12% year-over-year, driven by revenue growth. Thus, the accumulation business vertical accounted for 27% of total operating margin during the period. Now, we're going to talk a little about distribution. We provide now additional details regarding distribution business, which includes revenues related to access to the Caixa distribution network and the use of the Caixa brand as well as brokerage and intermediation revenues from insurance products are presented together under brokerage revenues -- brokerage revenues. During the quarter, revenues from this vertical grew 1%, reflecting the mix of products sold during the period. In the table on the left, we can see the detailed performance of this vertical, where I would highlight revenue growth of Premium Bonds, up 30%, mortgage insurance up 14% and home insurance growing 8%. Regarding the allocation of brokerage revenues, 22% of total revenue were directed towards incentive payments to Caixa employees and compensation for partnership channels. The remaining 67% of commissions paid by the operating companies remained with the brokerage operation as net revenue. In line with revenue performance, operating margin for the quarter reached BRL 467 million, representing a growth of 1% compared to the same period last year. Overall, distribution business accounted for 26% of operating margin with 21% related to the insurance business vertical and 6% associated with accumulation business. On the next slide, operational indicators are presented on a consolidated basis, considering Caixa Seguridade's economic ownership percentages in each investee company. During the quarter, the administrative expense ratio remained at levels similar to the same quarter last year, while improving 2.3 pps compared to Q4 '25, reflecting the seasonal nature of the expenses in the investee companies. Excluding the amount allocated to tax incentives during the period, the adjusted ratio for the quarter would have been 10.4%. Meanwhile, the combined ratio improved 3.1 pps year-over-year, reflecting better loss ratio performance of the insurance plan between periods. The expanded combined ratio improved by 3.3 pps year-over-year, also reflecting stronger financial performance, supported by higher average balances in financial investments and by a higher accumulated SELIC interest base rate during this first quarter compared to the same period of '24. Moving to Slide 15, we can analyze the contribution of operating and financial results into net income, considering the effects of all equity interest net of taxes and proportionately attributed to the company. Financial results during the quarter grew 18% compared to the first quarter of '25, reflecting, as I mentioned earlier, the SELIC rate variation observed during the period, combined with higher average balances in financial investments. As a result, financial results accounted for 32% of Caixa Seguridade's net income in Q1 '26, representing an increase of 1 pps year-over-year. Compared to the last quarter last year, the reduction in consolidated financial results reflects lower interest rates in Q1 '26 in addition to the dynamics of average investment balances impacted by dividends payments. It's worth noting that earnings growth compared to Q4 '25 was leveraged by stronger operating results. Regarding the composition of the consolidated investment portfolio. As of December, out of a total of BRL 15.7 billion in financial investments, 42% was allocated to floating rate securities, 34% to fixed rate securities, 17% to inflation-linked instruments, and 7% to other fund categories. The marginal change in the portfolio profile compared to the previous quarter reflects the strategy adopted by Caixa Vida e Previdencia CNP to increase exposure to fixed rate securities, raising their participation by 2.9 pps. The average yield of the fixed rate portfolio stood at 12.7%, showing slight growth compared to the previous quarter, reflecting the strategy adopted by the group investee companies to extend the portfolio duration and diversify maturities across the points of the curve. With that, we conclude the presentation of our Q1 '26 results, and now begin the Q&A session. I thank everyone of you.

[Operator Instructions] Our first question comes from Tiago.

My first question, I'd like to understand a little more about the penetration of this stacking products that comes strong. Looking forward, is there any room to improve the spaces, increase the spaces? In credit letters, you increased the basis, but in security funds, social security funds, private pension funds, I mean, it maintains stagnant. What do you think about that? How do you think about penetration in the basis? I'm talking about social security, as we discussed last quarter, if you could update us regarding the evolution, regarding the suspension, and if you went back to the original products.

First question regarding investment products, stacking products. First, credit letters, they are gaining space. It's an operation that grew year-over-year in the whole industry and it's not different than Caixa. We talked a little bit about that, because while sometimes we talked about it as a substitute of housing financing, but it actually complements the portfolio. So when the client is planning to buy a house or apartment, it does with us, because of our responsibility and trust, and this operation is growing at Caixa. But this year, in this first quarter, we observed the growth that we expect to have an acceleration in this growth next quarter, next semester, because we are focusing on our client intake, but we are preparing some features, Caixa credit letters. I'm not going to go that now. But regarding private pension, Caixa today has a model concentrated at the physical branch, especially when we talk about relationship with investors. We expanded our digital channels, but up to this moment, we depend on the sales force that has a fantastic upsell and has many opportunities for new clients, especially those coming from housing to support their resources and bring their reservations. Here, we have our cash back incentives, portability to bring their private pensions to Caixa Seguridade. But we believe that we have much room for new -- make clients understand that they need a private pension with us. And a key point of the success is the expansion of the digital channel, this pivoting moment on how to approach a client and the creation of the Super App, and we're going to be able to translate this big volume of clients into a relationship door, very, very wide digital modern door for bringing new clients. We're talking about the Social Security need that you mentioned. We had a suspension of operation last year. We've been reporting that to you. Debates have been ongoing like between Caixa and INSS. We've been monitoring this evolution. But up to this moment, it has not been concluded. As soon as we have any news, we will keep you posted with new information, like complete and transparent information as we've always been doing in our IR sector, but it's important to say that the product as a whole has a perception that adjusts in the time line. At a given time, it was seen as an increment of the results for the new loans booked group because the insurance and sometimes the client didn't know about it. So there was a insurance for giving credit, but it works differently since our IPO 5 years ago, we've been doing that. We have product penetration in the eligible credit lines, very similar to what we have on the digital channel. So the client when it's buying from the digital channel, they have a very similar level of engagement as we see in the physical channel. But the difference is that you have the sales force at the branch to sell that to the client. Last year, we changed the journey to have a third layer of confirmation, client confirm just to be sure that the client is buying the product in a conscious way. So in the credit instrument, you have insurance and there's a specific instrument that we're hiring services plus the token that arrives at the credit so far. So the credit life insurance is very important. Its nature is brilliant. We are very aware of that, and we've been working about that. But talking about INSS specifically since it's a vulnerable audience, some issues that were observed of clients were a very high percentage of selling to this product. So we've been clarifying that time, but as soon as we get updated, we post it. I talked a lot, but I hope I addressed all aspects of your question. Portela, please complement.

Thank you for your questions, Tiago. Talking about INSS, I do not have anything to say, complement. We are very close to them, close to Caixa. We've been doing this qualification of our salesforce in spite of all the efforts that have been implemented have 3 layers of confirmation. We are very conscious about our sales method. So we are very safe that the procedures adopted were very nice. With regarding private pension, of course, we maintain the first -- our intake, our liquid intake is a little different in terms of speed compared to same quarter last year, but we've been following that. We have like cash back. We have many incentives. But I think it's important to highlight 2 different aspects. We started at the beginning of Q2, a very nice campaign looking at our client incentive campaign for portability for like bringing money, cash and -- campaigning, the sale campaign aimed at the clients we already have. But the second point, I believe it's very important to highlight that the structure of capital, the funding structure regarding house, bond, credit very competitive when a manager manages a client since our structure is well rounded, we believe that our competition with LCI gives room to our growth. In spite of all the challenges presented by the market, we are very solid and we trust that we're going to grow this year.

It's very clear. Can I have a follow-up? What about this new framework for the deductible loan, the payroll deductible loan that now it's up 30%?

Yes, there's an impact. So we have a change in cap of interest rate up -- deductible loan. Regarding those payroll deductible in general, Caixa had a challenge within its mix of products, we used cards, but we had a focus on this structure of the client. We are following that. Every action that allows us to help the client manage their monthly income. So we've been monitoring that closely because the product is in evolution. So we believe that we're going to have a deliverable package for the second quarter. That's very nice. We're very confident and we are not worried about that right now. But regarding the interest rate, credit to worker from Caixa represents a lower interest rate average in the market. So focusing on the client, those are actions that are very relevant. Our payroll deductible loans was launched as a pilot. We're going to monitor to see, if there's any change. And maybe the offer was stabilized. We used to sell that in the physical agencies. So we are very confident that all those actions in a -- amid a very challenging scenario, I mean, that's like taking care of the affordability of the client and we're focusing on that. And we hope it's positive time to be offer, keep relation with us. So when the structure is very stressed, it tends to be negative with time. So we believe that our positive actions will generate value for the company in time.

Thank you, Tiago. Our next question comes from Arnon Shirazi from Citi.

[ Audio Gap ] And my second question is regarding housing insurance, Home Insurance because it's been last year had a big growth, but this quarter, the growth was lower. What's behind that?

Thank you, Arnon. Pleasure to have you here again. First topic regarding the high credit. Our breakdown regarding the issued premiums was like 69% coming from the individual credit part of our paid deductible loan. So this mix we are mentioning shows the importance of this payroll deductible loan inside our Credit Life operation. Of course, we been following the credit concessions from the bank to be able to show the product to offer, because it's related directly to the credit concession of the bank, but there are other fronts that we have been working on. So it's an expansion of the portfolio that you observed last year when we had like lost income at the Credit Life, we expanded the journeys. So we've been working our portfolio in a way that it makes it flexible to increase credit for the product. And of course, we've been checking the best way to work with the credit that was offered before just to offer some safety and security for the clients. Regarding Home Insurance, we had a very important significant ramp-up last year from our strategy that we designed together with Caixa. Since Caixa is the leader in housing, have this ability to win, to work that within our reach, and we've been putting these -- products in a fantastic way, bundle with Home Insurance to offer more protection for the client that's buying real estate unit, so he can pay via credit card. It's very convenient for the client, so the client knows that it is insured over time, it brings peace of mind. Let me remind you, the expansion and the evolution we had in our portfolio, which was fantastic. We've been working on communicating and retention of clients in this operation, that's why we have a very strong perspective on product this year. First quarter, we had a comparison base that brought a very important growth. Now a sustainable growth already have.

Arnon, now just to talk about the Home Insurance and just complementing what Edgar said. There's a very important topic that we've been talking calls is that we've been looking a lot at our bundled Home Insurance. Sometimes the effect is not too big at T-0 talking about annual payment, hanging monthly payment sometimes the perception it's not growing eventually, but you should think that this client will be with us as this banking over time brings as part of our strategy. And we believe that it generates value, the cheaper product instead of high annual product and so the client sees better value over time. So our surveys after purchasing things like positive feedback from the client, so we have like 40% of service as great feedback about the product. It makes us very, very happy because the client is happy and it makes us grow. In the accumulated period, it shows a very strong -- this complemented by Edgar says in this first quarter when we compare to last year, we had Q1 '25 a lot -- very strong in agricultural, agri business. It was not like that this year, but we invested in this quarter in some branches specialized in serving small businesses. It will probably aggregate more -- a bigger client base. So Caixa will talk about that next week and we're very, very well aligned, focusing on the client. We didn't capture all the value that we can. So there's room for more in taking.

Thank you, Arnon. Our next question comes from Antonio Ruette, Bank of America.

Thank you for the results. First, talking about the commercial area. You talked a lot about some opportunities between security and the bank, between Caixa Seguridade and the bank. I'd like to complement the question. Is there any gap in commercial -- commercially-wise between Seguridade and the bank that has not been explored up to this moment beyond those products that we've been talking Home Insurance, Credit Life, is there any gap that you can close? And the other question is about loss ratio for the whole sector is slower than expected because El Nino was not that strong. But when you look at some lines of Credit Life, the loss ratio is like lower than average, lower than the regular. How do you see that? What explains such a lower loss ratio in some lines that are not connected to any extreme events?

Antonio, let me start and then I give the floor to Edgar to talk about loss ratio. We don't have gaps. We have opportunities that we can capture better. The bank has been investing in technology. if we compare the beginning of this cycle with the President Carlos, looking at the perspective of investment, we doubled the technology investment. So it brings very nice options to us. Note that before, the bank had a very relevant initiative and this is an opportunity over a 150 million clients spread in different parts, not necessarily to work in synergy. So we started a beta test with some collaborators in June. Medium July, we're going to launch what we call Super App. And we want to convert all this audience to one front of relationship with the client and we believe that we have a very big opportunity whether through AI, CRM and client, especially from this convergence from audience to connection digital channel and new ways to build relationship with the client. It will build up opportunities. We talked about Credit Life to workers, but we've been preparing for throughout the second semester to have a 100% digital journey in all credit. So we have like housing credit stimulations every day, not necessarily everybody stimulating will hire the credit, will take the credit. Sometimes the client is just looking for new possibilities, and when it's all connected for the client, it brings more opportunities to us. So this bundle insurance for holder is very nice because when the client looks at that and when the client is putting everything in the basket, they start to think, well, what's good for me? I believe that this value notion and the board of Caixa has been like that in mind on talking about that focus on the client, putting the client in the center. Credit insurance, everything is paramount to talk about that. So we're very well-aligned with the bank, and there are many opportunities. We don't have gaps. I would not name them gaps, but we have many opportunities, especially because of the new digital channels, specialized relationship channels. Today, we have some specialized segments, again, so how can we capture this value? I told you at first time I participated, we have a very strong agenda for integration and technology. So we've been following very close to Caixa's definitions to make it happen better and to capture those opportunities. I don't see gaps as opportunities. We have 150 billion opportunities to build a more profitable relationship with the client and helping them in their lives really well.

Regarding the loss ratio, this year's scenario doesn't bring any like extreme event, nothing out of ordinary. Loss ratio rate was lower and we have 2 main factors here that the whole industry has been talking about. Volume of loss ratio was lower. And second aspect is a procedural change. So when opening the loss, it changes a little. Now we have minimal document requirements that we need to bring information, so it brings a curve reduction. But the trend is to go back to the normal levels. We didn't change the projection for the year. So keeping calm waters last year was relatively smooth year, this year so far the same, but this reduction was caused especially by those 2 factors that I mentioned here.

Thank you, Antonio. Our next question comes from Rafael Rehder from Safra.

Congrats on the results. My question is regarding Credit Life and this new unemployment protection as a payroll deductible loan. How -- what's the run rate from penetration of this product? And what's the perspective on how much it will bring in terms of premium increase? It would be very nice for us to understand it better.

Thank you, Rafael for your question. Credit is going really, really well. March, we had a beta test. It represents 15% of credit the bank later said that is from the digital channels. We are satisfied. So the penetration at the first moment in the beta test we have to improve the journeys, but it's up to 30%. So for a digital offer under testing phase without much guidance, we believe that it will be at that level and we're thinking about BRL 20 million, BRL 30 million for this new product. This is what we are planning and expecting when the product is well rounded, aligned, good purchase journey for the client. I think that's the behavior we can expect.

Thank you, Rafael. The next question comes from Marcelo from Bradesco BBI.

I see strong results. Regarding life insurance, I'd like to understand the change in the strategy of the product. They've adjusted really well. We could see among those 2 last semesters an increase. So how do you see that -- maybe the premiums issued will be a little harder, but I think that for next year, the comparison dynamics will facilitate growth. And how do you see, like the penetration of this monthly payment with this more dilutive ticket for the client? And do you still see space for penetration? Do you have any like figure or blended amount for penetration for this monthly ticket compared to the annual payment ticket?

Thank you, Marcelo for your question. It's a very nice question. Life insurance that is a long-term product with the client. This is a product that we've been monitoring closely and -- this change have been focusing on the client. It's not that, I'd say all products before was not good, but was good. We believe that this product is a long, long-term product, and we hope that the client keeps with us up to the end of his relationship with the bank. So this change brought products that had a lower average ticket, but it concentrated in this respect, but with new options and new possibilities for the time. Today, within our scope of products, we don't have products that have been -- and we've been working on that to launch that this year. I cannot like the whole life universal because we're still waiting for the regulation to be published Those redeemable life insurance has been really well accepted through technology. In spite of the legacy of the previous company, we've been investing in technology a lot. In this year, we'll have this redeemable life insurance that will complement our strategy and coverage for the client. We still believe in this strategy. We think that there is room for improvement in the relationship with our client to improve. We've been investing a lot in CRM to follow the clients that is, like, client cannot pay, and we're like thinking about how we can help the client to pay and keep with us, be with us, so we're going to improve retention. I think it's fundamental to focus on the client, and we believe that a stacking strategy is aggregating -- seems to aggregate a little here or there, but it brings persistence in our portfolio. The implementation of portfolio and investment in our managers and our salesforce, we've been qualifying our coworkers for them to look at life insurance as a great product for planning safety, and we believe that this strategy by -- by high-income clients and for the low-income clients. We can capture them, with like micro-insurance, monthly offering monthly payment products. This is our focus, and we believe the results will come. Especially in this monthly payment model, they will work out really well and accumulate in our portfolio really well.

Our next question comes from Henrique Navarro of Santander.

You've been publishing stable results, predictable results and we love -- as investors, we love that. In Brazil, some sectors and in the macro scenarios happen and you still deliver stable results. This is very positive. Looking forward and I don't want to guidance, but I want you to think with me. Looking in the long term, this predictability indicates we don't have much room for change in the long term. My question is, on the C-level optics, is there any possibility of change -- a good surprise to change the long-term earnings, any project for like cost reduction or any product you've been developing or maybe a segment that can return in a stronger way or some M&A that changed the status quo and bring different numbers for the future?

Thank you, Navarro. Starting from the idea of the business model of Caixa Seguridade, we have a distribution vertical. We have the insurance industry at home that provides. So you have this predictability and just to reinforce that when we publish the financial results of the investee because we have a very high payout. I don't think we're delivering aspects, but talking about that, we have stable, and big markets that are inside reporting great results and we've been talking a lot in M&A with a very nice audience. And we've been working together with Caixa to expand, and Portela will talk about that. But what's the most important point here? Our results come from -- mainly from our operating results. We are an operating company. In fact, our distribution revenues is very important. The origination of new operations is our focus for generating revenue, not the company. This portfolio with 8 main products that are -- those that we bring here in our earnings presentations, those are the main flagships for our target audience. The bank has a relationship with their clients offer. Now let me give the floor to Portela.

So, Navarro, thank you for the opportunity. Of course, I can only disclose a little, but in direct, we have in our business model, our penetration as it's much, much room for growth. Our target audience of over 150 million people fairly distributed in different apps and different fronts. But when we use our companies to offer products, our distribution channels, we have many opportunities at home. Our perspective is very big room for improved, reach client in this device with suitability for like micro-insurance, insurance in like high income products would have 10 branches. Singular client with high-income clients. Just as over 100 branches focused on small businesses, small companies. So we have a lot of opportunities for growth with what we have at home that have not been offered products. So when we look our business as usual, we have a very big opportunity, with this incredible model that is to improve. We don't have to invent anything because we have a predictable revenue model. Very close assistance like an old company with a big brand, like, big penetration in the territory. So when I use that with technology, I have a scale that is very important. Of course, looking here, we are not -- so far we haven't accessed some markets that we can access. So the management of the company is focused looking at that. We need to build experiences connected to Caixa and the clients who we offer products from the right channels and we can access 150 million clients from Caixa. It has been assessed opportunities for M&A. Exploring better our product portfolio. Insurance market, we've been monitoring that, if we have opportunities regarding M&A and acquisitions as well, but I'm talking about opportunities. It's a regulated market. We have a distribution structure, a broker, if you see. So we can look at the structure, I know, we've been assessing that on how we can micro-tune that and use that better. Our wholesale is underserved. We have much room to attract niches and segments for our clients. We don't have to look at always see maybe one product or the other. But our discipline at home, Caixa is going to push at the opportunities and we have to activate that better because of that, Navarro, I see lots of opportunities here. Okay?

Thank you, Navarro. Well, thank you, Portela. Thank you, Edgar. We have a few questions that we received through chat, and we will answer them by e-mail due to time limits. We cannot answer all of them in this Q&A session, but we are committed to address them by e-mail. So Portela final considerations.

I'd like to thank you for attending. We have some shareholders, market advisers and people trust our work. I'd like to thank our clients, our shareholders, our partners. They are like very important to us, this cultural diversity reviews the company. So I thank you the clients for trusting in our products. I'd like to thank especially our governance body that has bringing a lot of support and specifically our employees, our teams at Caixa Seguridade. Everybody is working a lot. I'm very excited. We have a very big window of opportunities ahead and we have a really good course ahead. Thank you for your energy, your time and your attendance here. Thank you so much. Thank you so much. Have a great day. [Statements in English on this transcript were spoken by an interpreter present on the live call.]