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Institutional Presentation

Institutional Presentation 2014

Overview

BB Seguridade Participações S.A. | Investor Relations 3

Track Record

* Pending approval by ANS (Agência Nacional de Saúde Suplementar).

1981

Creation of BB’s insurance operations

1992

Creation of Brasilprev

1995

Brasilcap’s inception in partnership with SulAmérica, Icatu and Aliança da Bahia

1996

Creation of Brasilveículos in partnership with SulAmérica

1999

Partnership with Principal Financial Group in Private Pension Plans

2010

Established Joint Venture with Mapfre

2008-2011

Ownership restructuring of BB’s insurance, Pension Plans and Premium Bonds division

2012

Creation of

BB

Seguridade

1987

BB Corretora’s establishment

2013

IPO BB Seguridade

Equity investment in IRB –Brasil RE

Brasildental*

Partnership with Odontoprev

http://www.google.com.br/imgres?imgurl=http://www.sindseg-rj.org.br/images/logos/alba.gif&imgrefurl=http://www.sindseg-rj.org.br/seguradoras.html&usg=__KShNk9BKbBPi7czKXB1AW1GxoYY=&h=88&w=88&sz=6&hl=pt-BR&start=10&zoom=1&tbnid=gBbZduYXJaub3M:&tbnh=77&tbnw=77&ei=3Fa7UNjONYvr0QGswIHICg&prev=/search?q=companhia+de+seguros+alian%C3%A7a+da+bahia&um=1&hl=pt-BR&sa=N&rls=com.microsoft:*&tbm=isch&um=1&itbs=1


BB Corretora

Brasilcap

100% Total

BB Seguros BB Cor

BB Mapfre SH1

Mapfre BB SH2

Brasilprev

Free Float (Post IPO)

74.9% BB Seguridade Economic Stake (%)

49.9%

50.0%

100% Total

50.0%

49.0%

50.0%

74.9%

49.9%

50.0%

66.7%

49.9%

67.0%

100%

100% BB Seguridade Volting Stake (%)

Board of Directors Representation (%)

66.25% 33.75%

Estrutura Acionária - Parcerias

IRB –Brasil Re

Brasil dental

20.5%

20.5%

20.0%

74.9%

49.9%

50.0%

Awaiting approval by ANS (Agência Nacional de Saúde Suplementar) Position until 12/31/2013

Ownership Structure


Estrutura Acionária - Parcerias Internal Structure

CEO Marcelo Augusto Dutra Labuto

Chief Financial Officer Werner Romera Suffert

Chief Corporate Governance Officer

Leonardo Giuberti Mattedi

Chief Business Development Officer

Ângela Beatriz de Assis

Executive Board

Board of Directors

General Meeting

Fiscal Council

Audit Commitee


FREE-FLOAT BREAKDOWN – DEC/13

Shareholders Structure

• 80% payout • Semi-annual dividends

DEC/13

Banco do Brasil66.3%

Free-float33.8%

Foreign61.4%

Institutional 32.6%

Individuals6.0%


Corporate Governance

• Only common shares

• 100% tag along

• 80% payout Stocks

• Six members

• The President of the Company

• One member appointed by the minority shareholders

• Two members appointed by Banco do Brasil from its Executive Board

• One member appointed by the Ministry of Planning, Budget and Management and the other by the Ministry of Finance

Board of directors

• Four members

• Elected among the active employees of Banco do Brasil

Board of executive officers

•Three members

•One is the independent member appointed by the minority shareholders

•The independent member has veto power

Related-party committee


Presidents, Vice Presidents and Directors

Corporate Governance – Affiliates

Board of Directors

SH1 Life

SH2 P&C

Brasilprev Pension Plans

Brasilcap Premium

Bonds

16 members

8 appointments

8 appointments

Companhia de Seguros

Aliança do Brasil

6 appointments

6 appointments

Mapfre Vida S.A

6 appointments

6 appointments

Vida Seguradora S.A

6 appointments

6 appointments

16 members

8 appointments

8 appointments

Aliança do Brasil

Seguros S.A

6 appointments

6 appointments

BB Mapfre Assistência

2 Appointments

2 appointments

Brasilveículos

6 appointments

6 appointments

16 members

8 appointments

8 appointments

3 appointments

3 appointments

12 members

8 appointments

2 appointments

2 appointments

4 appointments

Mapfre Affinity

Seguradora S.A

6 appointments

6 appointments

Mapfre Seguros Gerais

S.A

6 appointments

6 appointments

Broker

3 members

3 appointments

10 members

2 appointments

IRB-RE

Resseguro



Scope of the Related-party Committee

Captive access to Banco do Brasil’s network

20-year term

No termination clause

Signed on January 2013

Arm’s length

Brasilprev SH1 SH2 Brasilcap

Products sold through BB Corretora

Remuneration: fixed percentage of policies, varying according to product type

Shareholder agreements: 23-year term for PFG, 20-year term for Mapfre and without a defined term for Icatu / Aliança da Bahia

Related-party

Any proposal for changes in the agreements must be examined by the Related-party Committee and the independent member has a veto power


Backed by Banco do Brasil Expertise from Private Partners

Solidity, tradition, security and reliability

Safe harbor, especially for long term products

Flight to quality and less susceptible to market conditions

Brand awareness

Fast decision making

BB Seguridade operates in an arm’s length format

Monitors the developments of any potential conflicts between BB

and BB Seguridade

Improves corporate governance

Minimum voting stake of 50.1%

BB also plays an active role in its operational companies’ governance

Backed by Banco do Brasil with Expertise of Private Partnerships



Bank Channel

BB Seguridade strategy focuses on bancassurance with own brokerage, getting advantage of the captive access to Banco do Brasil distribution network.

Low complexity business model

Low capital need

No underwriting risk

Own Brokerage

Competitive Advantage

Distribution Channel

Non-banking Channel

140 Partnerships (Affinity)

20.844 External Brokers

61.4 Million of clients

5.450 Branches

63.141 ATMs

16.440 Banking Correspondents

32.046 Shared network

1º

Captive access to larger distribution network in Latin America

Performance


One of the Largest Insurance, Pension and Premium Bonds Companies in Latin America

R$ 14 billion in premiums written, R$ 23 billion in pension contributions and R$ 6.3 bi in premium bonds in 2013

Largest Insurance Broker in Latin America

Exclusive access to Banco do Brasil’s unique distribution network, with brokerage revenues of R$ 1.8 bi in 2013

Leading Presence in Premium Bonds, Pension Plans and Life and Rural Insurance

Insurance Operations, Pension Plans and Premium Bonds managed through private partnerships with global leaders

Fast Growing with High Profitability

30% yoy premium and contribution growth with 38.4%(1) ROAE in 2013

BB Seguridade at a Glance

2nd Largest P&C Insurance Company in Brazil

Over 2.4 million insured vehicles and R$ 7.8 billion in premiums written in 2013

122 employees at the holding and broker level.

7,352 employees at the affiliates level

1. Adjusted ROAE, considering the distribution of dividends


BB SEGURIDADE MARKET SHARE

RURAL LIFE

PENSION PLANS (PROVISION) PREMIUM BONDS (PROVISION)

20.7% 22.6%

2012 2013

28.7%

34.4%

2012 2013

TOTAL REVENUES*

17.0%

24.3%

2012 2013

*Combined market share considering premiuns written (except health), collection of pension plans and premium bonds 2013: Market Share position until November 2013

14.5%

20.1%

2012 2013

55.4%

70.8%

2012 2013


SH127.7%

SH26.5%

Brasilprev20.9%

Brasilcap6.4%

BB Corretora37.7%

Others0.8%

9,865 10,168 11,4658,720

12,996

33,322

43,349

4Q12 1Q13 2Q13 3Q13 4Q13 2012 2013

SH114.0%

SH220.0%

Brasilprev54.4%

Brasilcap11.6%

+ 30%

472 455 550 548707

1,754

2,260

36.9% 34.7% 39.1% 38.0% 49.7%32.9% 35.9%

4Q12 1Q13 2Q13 3Q13 4Q13 2012 2013Adjusted net income (R$ mm) ROAE

BB Seguridade Performance

TOTAL REVENUES (R$ MM) REVENUES BREAKDOWN

PROFITABILITY EARNINGS BREAKDOWN

QoQ: + 49%

YoY: + 32%

QoQ: + 29%

YoY: + 50%

2012 2013

2012 2013

SH130.1%

SH24.4%

Brasilprev19.6%

Brasilcap3.9%

BB Corretora40.4%

IRB1.3%

Others0.3%

SH114.4%

SH218.0%

Brasilprev53.2%

Brasilcap14.5%

+ 29%


+ 53%

1,321 1,2011,783

1,521 1,739

4,671

6,244

4Q12 1Q13 2Q13 3Q13 4Q13 2012 2013

Life47.4%

Credit Life29.7%

Mortgage Life1.7%

Rural17.6% Other

3.7%

BREAKDOWN OF PREMIUMS WRITTEN PREMIUMS WRITTEN (R$ MM)

364

146

610

272

523

1,015

1,551

4Q12 1Q13 2Q13 3Q13 4Q13 2012 2013

Life43.0%

Credit Life28.4%

Mortgage Life2.5% Rural

23.0% Other3.1%

957 1,055 1,173 1,249 1,216

3,658

4,694

4Q12 1Q13 2Q13 3Q13 4Q13 2012 2013

+ 34%

+ 28%

BB Mapfre SH1

QoQ: + 14%

YoY: + 32%

QoQ: - 3%

YoY: + 27%

QoQ: + 92%

YoY: + 44%

2012 2013

CHANGES IN TECHNICAL RESERVES (R$ MM) EARNED PREMIUM (R$ MM)


26.524.8

23.4 23.5 23.825.3

23.9

4Q12 1Q13 2Q13 3Q13 4Q13 2012 2013

- 1.4 p.p.

33.9 35.138.7

36.4

27.8

36.534.4

4Q12 1Q13 2Q13 3Q13 4Q13 2012 2013

18.516.8

14.716.6 16.8 16.8 16.2

4Q12 1Q13 2Q13 3Q13 4Q13 2012 2013

78.9 76.7 76.8 76.568.4

78.574.4

4Q12 1Q13 2Q13 3Q13 4Q13 2012 2013

- 0.6 p.p.

BB Mapfre SH1 – Adjusted Ratios

QoQ: - 8.1 p.p.

YoY: - 10.5 p.p.

QoQ: + 0.2 p.p.

YoY: - 1.7 p.p.

QoQ: - 8.6 p.p.

YoY: - 6.1 p.p.

QoQ: + 0.3 p.p.

YoY: - 2.7 p.p.

COMMISSION RATIO (%)

- 2.1 p.p.

- 4.1 p.p.

CLAIMS (%)

COMBINED RATIO (%) G&A RATIO (%)


7558 57

95 97

309 307

4Q12 1Q13 2Q13 3Q13 4Q13 2012 2013

- 0.4 %

BB Mapfre SH1

QoQ: + 3%

YoY: + 29%

QoQ: + 41%

YoY: + 80%

+ 40%

PROFITABILITY NET INVESTMENT INCOME (R$ MM)

1. Mark-to-market

Pre-Fixed8.2%

Interbank Deposit71.8%

Linked to inflation

9.1%

Others10.9%

Pre-Fixed9.7%


Linked to inflation10.4%

Others23.3%

ASSETS UNDER MANAGEMENT BREAKDOWN1

173 178 197 221311

647

907

23.5% 23.4% 27.7% 33.1%

48.2%

20.0% 29.6%

4Q12 1Q13 2Q13 3Q13 4Q13 2012 2013

Adjusted Net Income (R$ MM) ROAE

DEC/12 DEC/13


1,641 1,722 1,806 1,938 1,965

6,308

7,431

4Q12 1Q13 2Q13 3Q13 4Q13 2012 2013

Vehicles56.4%

Casualties31.0%

Other12.6%

40.4

113.6

21.8

184.4

42.5

340.4362.3

4Q12 1Q13 2Q13 3Q13 4Q13 2012 2013

1,681 1,836 1,828 2,122 2,008

6,649

7,794

4Q12 1Q13 2Q13 3Q13 4Q13 2012 2013

Mapfre BB SH2

QoQ: - 5%

YoY: + 19%

QoQ: + 1%

YoY: + 20%

QoQ: - 77%

YoY: + 5%

2012 2013 + 17%

+ 6% + 18%

Vehicles55.3%

Casualties30.3%

Other14.4%

BREAKDOWN OF PREMIUMS WRITTEN

EARNED PREMIUM (R$ MM)

PREMIUMS WRITTEN (R$ MM)

CHANGE IN TECHNICAL RESERVES (R$ MM)


98.0 98.793.8

99.8 97.4 98.6 97.4

4Q12 1Q13 2Q13 3Q13 4Q13 2012 2013

24.8 24.321.0

22.8 24.0 25.223.0

4Q12 1Q13 2Q13 3Q13 4Q13 2012 2013

54.7 55.1 54.157.4

51.954.7 54.6

4Q12 1Q13 2Q13 3Q13 4Q13 2012 2013

18.5 19.3 18.7 19.6 21.5 18.7 19.8

4Q12 1Q13 2Q13 3Q13 4Q13 2012 2013

Mapfre BB SH2 – Adjusted Ratios

QoQ: - 2.4 p.p.

YoY: - 0.6 p.p.

QoQ: -5.5 p.p.

YoY: - 2.8 p.p.

QoQ: + 1.9 p.p.

YoY: + 3.0 p.p.

QoQ: + 1.2 p.p.

YoY: - 0.8 p.p. - 0.1 p.p.

- 2.2 p.p.

+ 1.1 p.p.

- 1.2 p.p.

COMMISSION RATIO (%)

COMBINED RATIO (%) G&A RATIO (%)

CLAIMS (%)


4825

80

3956

228199

8.0% 4.0% 13.2%6.2%

8.5% 9.7%7.5%

4Q12 1Q13 2Q13 3Q13 4Q13 2012 2013


81

40 28

6583

338

216

4Q12 1Q13 2Q13 3Q13 4Q13 2012 2013

Mapfre BB SH2

QoQ: + 28%

YoY: + 3%

QoQ: + 42%

YoY: + 15%

- 36%

- 13%

PROFITABILITY (R$ MM) NET INVESTMENT INCOME (R$ MM)

1. Mark-to-market

Pre-Fixed11.0%


Linked to inflation

15.0%

Others29.1%

Pre-Fixed11.7%


Linked to inflation

5.2%

Others33.3%

DEC/12 DEC/13

ASSETS UNDER MANAGEMENT BREAKDOWN1


226 234 255 271 271

838

1,031

4Q12 1Q13 2Q13 3Q13 4Q13 2012 2013

PGBL

13.3%

VGBL

85.0%

Traditional1.7%

131 128 145 153 167

477

592

60.5% 53.8% 59.0% 58.4% 58.0%47.1% 46.3%

4Q12 1Q13 2Q13 3Q13 4Q13 2012 2013


PGBL10.8%

VGBL

87.4%

Traditional

1.8%

5,762 6,038 5,8953,694

7,414

18,131

23,041

4Q12 1Q13 2Q13 3Q13 4Q13 2012 2013

Pension Plans

QoQ: + 101%

YoY: + 29%

QoQ: 0%

YoY: + 20%

QoQ: + 9%

YoY: + 27%

2012 2013 + 27%

+ 23%

+ 24%

BREAKDOWN OF CONTRIBUTION

PROFITABILITY (R$ MM) MANAGEMENT FEE (R$ MM)

PREMIUM CONTRIBUTION (R$ MM)


Pre-Fixed 6%

Interbank Deposit

3%

Linked to inflation

91%

PGBL24.3%

VGBL66.0%

Traditional9.7%

67,34771,937 75,237 77,616

83,543

Dec/12 Mar/13 Jun/13 Sep/13 Dec/13

PGBL28.0%

VGBL61.0%

Traditional11.0%

Pension Plans

DEC/12 DEC/13

RESERVES BREAKDOWN RESERVES (R$ MM)

TRADITIONAL PLANS PORTFOLIO ASSETS UNDER MANAGEMENT BREAKDOWN

Pre-Fixed3.6%

Interbank Deposit

1.7%

Linked to inflation94.8%

Government Bonds74.7%

Securities*12.9%

Debentures and commercial

papers9.0%

Stocks3.4%


Securities*14.9%

Debentures and commercial

papers7.7%

Stocks2.3%

DEC/12 DEC/12 DEC/13 DEC/13

QoQ: + 8%

YoY: + 24%


29.3

21.4

25.527.3 26.6

21.6

25.5

4Q12 1Q13 2Q13 3Q13 4Q13 2012 2013

Unique Payment

50.4%

Montlhy Payment

49.6% Unique Payment

70.2%

Montlhy Payment

29.8%

4737

7658

74

139

245

4Q12 1Q13 2Q13 3Q13 4Q13 2012 2013

1,101 1,093

1,9581,383

1,834

3,871

6,270

4Q12 1Q13 2Q13 3Q13 4Q13 2012 2013

Premium Bonds

QoQ: + 33%

YoY: + 67%

QoQ: - 0.7 p.p.

YoY: - 2.6 p.p.

QoQ: + 28%

YoY: + 57%

2012 2013 + 62%

+ 77%

+ 3.9 p.p.

PREMIUM BONDS COLLECTION (R$ MM) COLLECTION BREAKDOWN

LOTTERY RATIO (%) RESULTS WITH DRAWS (R$ MM)


4925 28 27

52

168

132

168.0%63.4% 63.9% 51.7%

104.0% 88.6% 57.1%

4Q12 1Q13 2Q13 3Q13 4Q13 2012 2013

Net Income (R$ MM) ROAE

29.4

42.946.1

43.946.5

41.045.1

4Q12 1Q13 2Q13 3Q13 4Q13 2012 2013

Premium Bonds

QoQ: + 2.6 p.p.

YoY: + 17.1 p.p.

QoQ: + 94%

YoY: + 6%

+ 4.1 p.p.

- 21%

COMISSION RATIO (%) PROFITABILITY

PORTFOLIO BREAKDOWN TRADING PORTFOLIO BREAKDOWN


Securities*10.5%

Debentures and commercial papers

13.3%

Others6.8%

Dec/12

Government Bonds 78%

Securities* 5%

Debentures and commercial papers

9%

Others 8%

Pre-Fixed37.5%


Linked to inflation

23.1%

Stock Funds1.1%

Pre-Fixed43.7%


Linked to inflation

5.5%

Stock Funds1.3%

DEC/12 DEC/13 DEC/12 DEC/13


362 388 447 425506

1,359

1,766

4Q12 1Q13 2Q13 3Q13 4Q13 2012 2013

179 194232 218

270

661

913

4Q12 1Q13 2Q13 3Q13 4Q13 2012 2013

49.6 49.9 51.8 51.2 53.248.7

51.7

4Q12 1Q13 2Q13 3Q13 4Q13 2012 2013

+ 30%

Brokerage

2012 2013

+ 3.0 p.p. + 38%

QoQ: + 19%

YoY: + 40%

QoQ: + 24%

YoY: + 50%

QoQ: + 2.0 p.p.

YoY: + 3.6 p.p.

SH148.2%

SH219.8%

Brasilprev16.8%

Brasilcap12.5%

Other2.7%

SH150.3%

SH217.3%

Brasilprev15.6%

Brasilcap16.3%

Other0.5%

REVENUES BREAKDOWN

NET MARGIN (%)

BROKERAGE REVENUES (R$ MM)

ADJUSTED NET INCOME (R$ MM)


BB Seguridade - Adjusted ROAE 37% - 41% 35.9%¹

Premiums written growth - BB Mapfre SH1 37% - 49% 33.7%

Premiums written growth - Mapfre BB SH2 15% - 20% 17.2%

Collection growth - Pension Plans 30% - 40% 27.1%

Collection growth - Premium Bonds 50% - 65% 62.0%

Guidance 2013

Ratio 2013 Estimates 2013 Performance

¹ Considering the distribution of dividends, the adjusted ROAE would be 38.4%


Guidance 2014

Ratio 2014 Estimates

BB Seguridade - Adjusted ROAE 44% - 49%

Premiums written growth - BB Mapfre SH1 24% - 32%

Premiums written growth - Mapfre BB SH2 19% - 26%

Collection growth - Pension Plans 33% - 47%

Collection growth - Premium Bonds 10% - 15%


Low penetration of health beneficiaries

High ROAE with no underwriting risk

Health Insurance

Focus solely on distribution

Not part of Banco do Brasil’s current portfolio

Health Insurance Distribution

Health Insurance

Opportunity to distribute partners’ products in the banking channel

Ex: Travel, micro-insurance and warranty

1st bank to receive SUSEP’s authorization to

sell micro-insurance

Potential to develop new products

Introduction of products

already tested by partners in other markets

New Products

Focus on maximizing impact and reach of product offerings

Attractive and high growth sector High ROAE with low risk Low penetration of dental plans High Cash flow

Dental insurance

Brasil dental

Joint-venture with Odontoprev, created for

dental insurance operation

74,99% of Total Equity

20-year term

Entry in an underpenetrated segment

Strategic partnership with an experienced player

Infrastructure focused (PAC, World Cup and Olympics are likely to increase demand)

Reinsurance

Acquisition of 20,5% of IRB’s

common shares

Joining the control group

Deliverables

Portfolio of Products


Our Products – SH1 Insurances

Definition: term life insurance which provides coverage at a fixed rate of payments for a limited period, without accumulation.

Coverage: in case of death, permanent disability or severe disease during the term, the benefit will be paid to the insured or his beneficiary.

Life

Definition: insurance that protects farmers from weather hazards, falling in the

market prices of the crop. Can also protects his property and be used as a guarantee for rural loans.

Coverage: in the event of any claim the coverage is limited to the insured amount hired.

Rural

Definition: insurance related to mortgage prepayment.

Coverage: in case of death or permanent disability the remaining balance of debt will be paid. This product can also protects the insured from damage to the property.

Housing

Credit Life Definition: insurance that guarantee the payment of loans.

Coverage: in case of death or permanent disability the client or his beneficiary will have his insured loan paid.


Our Products – SH2 Insurances

Definition: A mandatory insurance related to vehicles accident in Brazil.

Coverage: Covers personal injury caused by vehicles to passengers, drivers or pedestrians.

DPVAT

Definition: insurance to protect vehicles from damage sustained and caused in accidents or other situations.

Coverage: accidental damage or theft of the vehicle, compensation for damage or injury caused to third parties and passengers of the vehicle, and assistance in the event of an accident or crash.

Auto

Definition: insurance that protects the property of individuals and companies.

Coverage: the main coverage are for damages to the home of individuals, the assets of companies such as machinery and other properties, and third party liability.

P&C


Our Products - BrasilPrev

Defined remuneration Guarantee fixed interest rates relative to inflation.

** No longer sold

Traditional Plan

For people who declare income taxes (IR) in the complete form because the contributions are deductible.

PGBL

For people who declare income taxes in the simplified format or is exempt. Focus on sucession

Much lower inheritance costs (does not have either legal or tax costs) Less time consuming (beneficiary receives it in less than 30 days)

VGBL


Our Products - BrasilCap

Unique

Payment

Monthly Payment

It is a saving bond which has the aim of be an alternative form to accumulate reserves, with maturity and interest rates previously determined.

The bond holder also has the chance to apply for an award by lottery.

Chances of Contemplation

Ourocap From 1 in 10,000 to 1 in 1,000,000

Official Lottery 1 in 50,063,860

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