| INSURANCE |
18. INSURANCE The opening of the assets and liabilities of insurance contracts as of December 31, 2025 and 2024 is detailed below. The insurance results for the periods ending on that date are also detailed: | | | | | | | 12/31/2025 | | 12/31/2024 | Insurance contracts assets | | | | | Assets for remaining coverage | | 2,841,301 | | 6,383,998 | Liability for incurred claim - present value of future cash flow | | (640,512) | | (2,406,240) | Liability for incurred claim - risk adjustment for non-financial risk | | (73,364) | | (119,954) | Net balance | | 2,127,425 | | 3,857,804 | | | | | | Insurance contracts Liabilities | | | | | Assets for remaining coverage | | 1,520,853 | | — | Liability for incurred claim - present value of future cash flow | | (1,820,956) | | — | Liability for incurred claim - risk adjustment for non-financial risk | | (169,898) | | — | Net balance | | (470,001) | | — | | | | | | Reinsurance contracts Assets | | | | | Assets/(Liabilities) for remaining coverage | | 2,481 | | (79,760) | Incurred Claims for contracts under the Premium Allocation Approach (PAA) | | 326,304 | | 186,481 | Net balance | | 328,785 | | 106,721 | | | | | | Reinsurance contracts liabilities | | | | | Liabilities for remaining coverage | | — | | (25,273) | Incurred Claims for contracts under the Premium Allocation Approach (PAA) | | — | | 1,796 | Net balance | | — | | (23,477) | | | | | | Balances from brokers operations | | | | | Assets from brokers operations | | 207,018 | | 224,325 | Liability from brokers operations | | (71,431) | | (205,761) | Net balance | | 135,587 | | 18,564 | | | | | | Assets | | 2,663,228 | | 4,188,850 | Liability | | (541,432) | | (229,238) |
| | | | | | | | | 12/31/2025 | | 12/31/2024 | | 12/31/2023 | Insurance revenue from contracts measured under the Premium Allocation Approach (PAA) | | 52,198,864 | | 53,656,427 | | 53,187,288 | Insurance revenue | | 52,198,864 | | 53,656,427 | | 53,187,288 | Incurred claims | | (11,972,109) | | (8,962,324) | | (7,380,333) | Acquisition and administrative expenses | | (14,703,304) | | (17,318,937) | | (9,072,248) | Insurance service expenses | | (26,675,413) | | (26,281,261) | | (16,452,581) | Allocation of reinsurance premiums | | (320,412) | | (394,538) | | (425,655) | Amounts recoverable from reinsurers for incurred claims | | 1,123,096 | | 204,022 | | 105,963 | Net expenses from reinsurance contracts held | | 802,684 | | (190,516) | | (319,692) | Insurance service result - IFRS 17 | | 26,326,135 | | 27,184,650 | | 36,415,015 | Broker activity operations | | 10,158,176 | | 5,695,618 | | 4,925,697 | Income from insurance activities | | 36,484,311 | | 32,880,268 | | 41,340,712 |
Reconciliation of the liability for remaining coverage and the liability for incurred claims | | | | | | | | | Incurred claims for
contracts under the
Premium Allocation
Approach (PAA) | Reinsurance contracts held at December 31, 2025 | | Remaining coverage | | Present value of future
cash flows | | Total | Reinsurance contracts liabilities | | (25,273) | | 1,796 | | (23,477) | Reinsurance contracts assets | | (79,760) | | 186,481 | | 106,721 | Net balance as at January 1, 2025 | | (105,033) | | 188,277 | | 83,244 | Net income (expenses) from reinsurance contracts held | | | | | | | Allocation of reinsurance premiums | | (320,412) | | — | | (320,412) | Amounts recoverable from reinsurers for incurred claims | | — | | 1,123,096 | | 1,123,096 | Net income (expenses) from reinsurance contracts held | | (320,412) | | 1,123,096 | | 802,684 | IAS29 + finance income from reinsurance contracts held | | (26,090) | | (23,551) | | (49,641) | Total amounts recognised in comprehensive income | | (346,502) | | 1,099,545 | | 753,043 | Cash flows | | | | | | | Premiums paid net of ceding commissions and other directly attributable expenses paid | | 454,016 | | — | | 454,016 | Recoveries from reinsurance | | — | | (961,518) | | (961,518) | Total cash flows | | 454,016 | | (961,518) | | (507,502) | Net balance as at December 31, 2025 | | 2,481 | | 326,304 | | 328,785 | Reinsurance contract Assets | | 2,481 | | 326,304 | | 328,785 |
| | | | | | | | | Incurred claims for
contracts under the
Premium Allocation
Approach (PAA) | Reinsurance contracts held at December 31, 2024 | | Remaining coverage | | Present value of future
cash flows | | Total | Reinsurance contracts liabilities | | (71,027) | | 56,611 | | (14,416) | Net balance as at January 1, 2024 | | (71,027) | | 56,611 | | (14,416) | Net income (expenses) from reinsurance contracts held | | | | | | | Allocation of reinsurance premiums | | (394,538) | | — | | (394,538) | Amounts recoverable from reinsurers for incurred claims | | — | | 204,022 | | 204,022 | Net income (expenses) from reinsurance contracts held | | (394,538) | | 204,022 | | (190,516) | IAS29 + finance income from reinsurance contracts held | | 82,386 | | (29,588) | | 52,798 | Total amounts recognised in comprehensive income | | (312,152) | | 174,434 | | (137,718) | Cash flows | | | | | | | Premiums paid net of ceding commissions and other directly attributable expenses paid | | 278,141 | | — | | 278,141 | Recoveries from reinsurance | | — | | (42,770) | | (42,770) | Total cash flows | | 278,141 | | (42,770) | | 235,371 | Net balance as at December 31, 2024 | | (105,033) | | 188,277 | | 83,244 | Reinsurance contracts liabilities | | (25,273) | | 1,796 | | (23,477) | Reinsurance contracts assets | | (79,760) | | 186,481 | | 106,721 |
| | | | | | | | | | | | | December 31, 2025 | | | Insurance contracts issued | | | | Further analysis of the liabilities for incurred claims (LIC) for contracts under the Premium Allocation Approach (PAA) | | | | | Liability for remaining coverage (LRC) | | Present value of future cash flows | | Risk adj. for non-fin. risk | | Total | Insurance contracts assets | | 6,383,998 | | (2,406,240) | | (119,954) | | 3,857,804 | Net balance as at January 1, 2025 | | 6,383,998 | | (2,406,240) | | (119,954) | | 3,857,804 | Insurance revenue | | 52,198,864 | | — | | — | | 52,198,864 | Insurance service expenses | | | | | | | | | Incurred claims and other directly attributable expenses | | — | | (23,447,572) | | (152,077) | | (23,599,649) | Insurance acquisition cashflows | | (3,075,764) | | — | | — | | (3,075,764) | Insurance service expenses | | (3,075,764) | | (23,447,572) | | (152,077) | | (26,675,413) | Insurance service result | | 49,123,100 | | (23,447,572) | | (152,077) | | 25,523,451 | IAS 29 + net financial expenses for insurance contracts | | (3,865,440) | | 147,948 | | 28,769 | | (3,688,723) | Total amounts recognised in comprehensive income | | 45,257,660 | | (23,299,624) | | (123,308) | | 21,834,728 | Cash flows | | | | | | | | | Premiums received | | (49,469,747) | | — | | — | | (49,469,747) | Claims and other directly attributable expenses paid | | — | | 23,244,396 | | — | | 23,244,396 | Insurance acquisition cashflows | | 2,190,243 | | — | | — | | 2,190,243 | Total cash flows | | (47,279,504) | | 23,244,396 | | — | | (24,035,108) | Net balance as at December 31, 2025 | | 4,362,154 | | (2,461,468) | | (243,262) | | 1,657,424 | Closing insurance contracts assets | | 2,841,301 | | (640,512) | | (73,364) | | 2,127,425 | Closing insurance contracts liabilities | | 1,520,853 | | (1,820,956) | | (169,898) | | (470,001) | Net balance as at December 31, 2025 | | 4,362,154 | | (2,461,468) | | (243,262) | | 1,657,424 |
| | | | | | | | | | | | | December 31, 2024 | | | Insurance contracts issued | | | | Further analysis of the liabilities for incurred claims (LIC) for contracts under the Premium Allocation Approach (PAA) | | | | | Liability for remaining coverage (LRC) | | Present value of future cash flows | | Risk adj. for non-fin. risk | | Total | Insurance contracts assets | | 4,936,104 | | (1,470,553) | | (65,021) | | 3,400,530 | Net balance as at January 1, 2024 | | 4,936,104 | | (1,470,553) | | (65,021) | | 3,400,530 | Insurance revenue | | 53,656,427 | | — | | — | | 53,656,427 | Insurance service expenses | | | | | | | | | Incurred claims and other directly attributable expenses | | — | | (20,510,225) | | (90,095) | | (20,600,320) | Insurance acquisition cashflows | | (5,680,941) | | — | | — | | (5,680,941) | Insurance service expenses | | (5,680,941) | | (20,510,225) | | (90,095) | | (26,281,261) | Insurance service result | | 47,975,486 | | (20,510,225) | | (90,095) | | 27,375,166 | IAS29 + net financial expenses for insurance contracts | | (10,634,744) | | 379,970 | | 35,162 | | (10,219,612) | Total amounts recognised in comprehensive income | | 37,340,742 | | (20,130,255) | | (54,933) | | 17,155,554 | Cash flows | | | | | | | | | Premiums received | | (38,906,564) | | — | | — | | (38,906,564) | Claims and other directly attributable expenses paid | | — | | 19,194,568 | | — | | 19,194,568 | Insurance acquisition cashflows | | 3,013,716 | | — | | — | | 3,013,716 | Total cash flows | | (35,892,848) | | 19,194,568 | | — | | (16,698,280) | Net balance as at December 31, 2024 | | 6,383,998 | | (2,406,240) | | (119,954) | | 3,857,804 | Closing insurance contracts assets | | 6,383,998 | | (2,406,240) | | (119,954) | | 3,857,804 | Net balance as at December 31, 2024 | | 6,383,998 | | (2,406,240) | | (119,954) | | 3,857,804 |
b. Income from insurances activities The composition of the item “Result for insurance activities” as of December 31, 2025 and 2024 is disclosed in Note 15.18.
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