There is evidence that the strategy can work of pivoting away from insurance. Brazil’s Porto Seguro has spent decades building a range of services for its clients, from car parking and car repairs to plumbing for the home. The investment has paid dividends. Last year the company made R$135m ($36m) of net profits from its services businesses, against R$778m from insurance.
Henrik Naujoks, a partner with Bain & Company, says: “They [Porto Seguro] are a high-price insurance provider, but they constantly grow market share. People like the services that they aggressively advertise. People are willing to pay the price.”