This article first appeared on GuruFocus .
Release Date: August 04, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Bradsaude SA ( BSP:SAUD3 ) achieved a significant increase in its consolidated portfolio, reaching 13.6 million members with 855,000 organic net additions in the last 12 months, an unprecedented growth in the company's history.
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The company reported strong financial performance with revenues growing 10.8% to BRL13.9 billion and net income increasing 24.8% to BRL1.1 billion in the quarter, while the ROAE improved by 4 percentage points to 25.8%.
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Atlantica Hospitals, a key business unit, showed exceptional results with net income growing 312% to BRL64 million, now accounting for 6% of consolidated figures, up from 2%.
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The company's growth is of high quality, with one-third of net additions coming from the SME segment, which offers significant returns and lower loss ratios in both health and dental plans.
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OdontoPrev, the leader in dental plans, continues to deliver superior returns with a net margin over 20% and a loss ratio less than half of the medical and hospital plans, contributing over 10% to the ecosystem's results.
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Management reaffirmed a disciplined underwriting approach, maintaining a stable loss ratio of 83.3% over the last 12 months while focusing on profitable portfolio growth and cost efficiencies.
Negative Points
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The loss ratio in the quarter remained stable year-over-year, and management cautioned that the third quarter typically shows a higher loss ratio due to seasonality, which could pressure results in the near term.
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The company faces intense competition, particularly in Sao Paulo, with some market players showing a lack of rationality in pricing, which could challenge Bradsaude SA ( BSP:SAUD3 )'s ability to maintain premium growth.
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Sales expenses increased due to the robust net additions, reflecting the higher costs associated with acquiring new members in a market where total industry membership is not growing.
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Court orders (judicial demands) remain a structural reality in the industry, adding unpredictability to the loss ratio and potentially impacting profitability if they increase.
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The health ticket growth for managed products was modest at 2% year-over-year, partly due to the launch of more efficient but cheaper products, which could limit top-line expansion.
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The effective tax rate on interest on equity is expected to decrease in the second half due to the mix of assets, but this also signals a potential reduction in the financial result contribution, which has been a significant part of overall profitability.
Q & A Highlights
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Q: How should we interpret the stable loss ratio in the second quarter, and do you remain conservative about utilization trends for the rest of the year, especially considering the typically higher third-quarter seasonality? A: Marinelli (CEO) explained that the company's caution is based on long-term industry experience and granular data, not just a single quarter. He emphasized that the loss ratio should be viewed on a yearly basis, where it remains relatively stable. The company is focused on building a high-quality portfolio through disciplined underwriting, particularly in the SME segment, and is working on new products with differentiated claims profiles. He reiterated that the loss ratio for 2026 is expected to remain relatively stable, with the understanding that the third quarter typically has higher seasonality.
Q: Can you provide an update on the impact of court orders on the loss ratio, and how would the company handle a transition to a lower interest rate environment? A: Marinelli (CEO) acknowledged that court orders are an industry reality but stated they are already incorporated into the loss ratio and do not represent a structural change. Regarding lower interest rates, he noted that while financial results are a component, the company's industrial results are the core driver. The strategy focuses on disciplined growth, maintaining portfolio quality, and leveraging the diversified sources of profitability across Bradesco Saude and OdontoPrev to offset any potential decline in financial income.
Q: Regarding the health ticket growth of only 2% year-over-year (excluding managed products), can you break down the impact of portfolio price adjustments versus the mix effect from launching cheaper, more efficient products? A: Marinelli (CEO) explained that the modest ticket growth is directly linked to the company's competitive strategy. The growth is a result of promotional activities and the launch of new products in various markets, which is part of the "tripod" strategy of balancing profit, loss ratio, and portfolio growth. By reinvesting the benefits of a lower loss ratio into more competitive pricing, the company aims to drive member growth, which is expected to lead to better profitability in the future.
Q: What is the competitive scenario like, especially in Sao Paulo, and is the strong net addition growth a result of a more rational competitive environment or a stronger commercial agenda? A: Marinelli (CEO) stated that the company has significant competitiveness, especially in the SME segment, with new products and regional launches. In the corporate segment, they have observed a lack of rationality in some competitor offers, but Bradesco Saude remains highly disciplined, prioritizing portfolio profitability over market share. The growth is a result of a deliberate strategy to be more competitive, leveraging the company's brand and distribution channels.
Q: What are the opportunities in regional health plans, and what synergies can be expected from the integration of the companies? A: Marinelli (CEO) clarified that regional plans are a marginal strategy, not a shift from their focus on national premium plans. They are leveraging assets like the new hospital in Baru to launch regional products in specific markets. Regarding synergies, Vinicius (CFO) highlighted the combination of sales forces and the unique opportunity to cross-sell products, such as using the new Baru hospital as an anchor for commercial actions. The focus is on sustainable top-line synergies rather than one-off cost savings.
Q: Given the design of new products with lower reimbursement levels and a focus on SMEs, shouldn't the loss ratio gradually improve over time, or will these efficiencies be shared with clients to drive faster member growth? A: Marinelli (CEO) explained that product sustainability is key. The company is working on product design, co-payments, and fighting fraud to maintain competitive prices. While they have done significant work on this, they are also seeing cost pressures in certain medical specialties. The company is actively managing provider relationships and compensation tables to contain costs, which should lead to a more sustainable loss ratio for the rest of the year.
Q: Regarding the payout and interest on equity, should we expect a lower effective tax rate in the second half of the year, closer to 36%? A: Vinicius (CFO) confirmed that the effective rate is expected to be lower in the second half. This is due to the increasing contribution of assets with lower tax rates coming into the Bradesco Saude ecosystem. The company will continue to use interest on equity as a mechanism for distribution, following its policy of distributing 50% of results, and the effective rate should reflect the mix of assets as projected.
Q: Is the risk-based capital a limiting factor for the distribution of interest on equity, considering the adjusted net worth and cash positions of the health and dental operations? A: Vinicius (CFO) addressed this by stating that the company has room within its risk-based capital requirements. The first distribution of interest on equity was made shortly after the transaction closed, signaling the company's commitment to shareholder returns. They will continue to revisit the payout mechanism recurrently, ensuring it aligns with the company's capital needs and policy.
Q: Can you elaborate on the seasonality of the loss ratio for the third quarter and the recurring levels of payout? A: Marinelli (CEO) noted that historically, the loss ratio in the third quarter is higher than other quarters. However, since 2025 was an exceptionally good year, they expect relative stability for 2026. Vinicius (CFO) added that the first payout was based on a lower base since the operation closed on April 30th, and they will recurrently revisit the payout, following the 50% policy, with a commitment to discipline in distributing results.
Q: What is the breakdown of the strong net additions, and how should we view the increase in sales expenses? A: Pacheco (Executive) highlighted that the consolidated portfolio reached 13.6 million members, with a significant organic increase of 855,000 members. One-third of the net adds came from the SME segment, which is a key addressable market. Marinelli (CEO) explained that the increase in sales expenses is a direct reflection of the stronger growth strategy. As the company gains market share in a stagnant market, higher initial sales expenses are expected and are part of the disciplined execution of their growth plan.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
