Aliança do Brasil sees profits up 11.2% in 2004

Brazilian insurer Aliança do Brasil saw net profits increase 11.2% last year to 124mn reais (US$47.6mn) compared to the previous year, the company said in a statement. The net profit translated into an impressive ROE of 70%, compared to the already high 64% ROE obtained in 2003. The strong performance in 2004 was due to the sales efforts of its parent Banco do Brasil (BB) and to an increasing number of insurance sales made through auto-service channels, company president Luís Luz said. Aliança do Brasil is one of several insurance subsidiaries run by federal bank BB. On the premium side, the insurer registered a 28% increase to 1.1bn reais. The combined ratio remained at the same 91.3% level as in 2003. Aliança do Brasil offers a wide range of life and non-life insurance products. At the end of 2004 it was Brazil's fifth largest insurer measured in total premiums, in the segments where it operates. BB is the biggest bank in Brazil in terms of overall market share.