Brasilveiculos sees profits drop 43% in 2003

Brazilian auto insurer Brasilveiculos Companhia de Seguros saw net profits drop 43% to 25.6mn reais (US$8.54mn) last year, compared to 2002, local press reported. Brasilveiculos' net profit was negatively impacted last year by a 6mn reais reinforcement of the company's reserves and by a 4mn reais provision against a legal demand, local press quoted president Antonio Luiz as saying. The insurer's ROE came in at 15.8% at the end of last year and billing rose 15% to 561mn reais. Brasilveiculos' claims ratio stood at 70.1% at year-end with the combined ratio of 100,9%. The company controls 5% of the Brazilian auto insurance market with 500,000 insured vehicles. The insurer is a joint venture between local insurer SulAmerica and federal bank Banco do Brasil.