apresentação do powerpoint · the ceo of bb seguridade four members: elected among the active...

Institutional Presentation

BBSEY

ADR - Level I

Overview

BB Seguridade Participações S.A. | Investor Relations 3

Track Record

¹ Pending approval by ANS (Agência Nacional de Saúde Suplementar).

1981

Establishment of BB’s insurance operations

1992

Creation of Brasilprev

1995

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

1996

Establishment of Brasilveículos in partnership with SulAmérica

1999

Partnership with Principal Financial Group in Private Pension Plans

2010

Establishment of the Joint Venture with Mapfre

2008-2011

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

2012

Establishiment of

BB

Seguridade

1987

BB Corretora’s establishment

2013

IPO

Equity

investment in

IRB –Brasil RE

Brasildental¹

Partnership

with Odontoprev

2014

Establishment

of

ADR – Level I

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

Brokerage

Brasilcap

Premium Bonds

100% Total

BB Seguros BB Cor

BB Mapfre SH1

Life, Rural

Mapfre BB SH2

P&C

Brasilprev

Pension Plans

Free Float (Post IPO)

74.9% BB Seguridade Economic Stake (%)

49.9%

50%

100% Total

50.0%

49.0%

50%

74.9%

49.9%

50%

66.7%

49.9%

67%

100%

100% BB Seguridade Voting Stake (%)

Board of Directors Representation (%)

66.25% 33.75%

Estrutura Acionária - Parcerias

IRB –Brasil Re

Reinsurance

Brasildental

Dental Insurance

20.5%

20.5%

20%

74.9%

49.9%

50%

Awaiting the approval by ANS (Agência Nacional de Saúde Suplementar) Position until 03/31/2014

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


Shareholders Structure

FREE-FLOAT BREAKDOWN – MAR/14 MAR/14

Foreign Investors

62.6%

Institutional 31.7%

Individuals5.6%

Banco do Brasil66.3%

Free-float33.8%


ADR Program

In 2014, BB Seguridade established a sponsored Level I American Depositary Receipt (ADR) program.

Ticker: BBSEY

Structure: Level I ADR

Exchange: Over-the-counter (OTC) market

Ratio (ADR:ORD): 1 ADR : 1 ORD

DR ISIN: US05541J1034

CUSIP: 05541J103

Depositary Bank: Deutsche Bank Trust Company Americas

Custodian Bank: Banco do Brasil S.A.


Corporate Governance

Only common shares

100% tag along

80% payout (semi annual dividends)

Stocks

Related-party Comittee

Board of Executive Officers:

Board of Directors:

Two members appointed by Banco do Brasil from its Board of Executive Officers

One appointed by the Ministry of Planning, Budget and Management and the other by the Ministry of Treasury

One member appointed by the minority shareholders

The CEO of BB Seguridade

Four members:

Elected among the active employees of Banco do Brasil

Remuneration policy: fixed monthly wage plus variable portion between six and twelve monthly wages. The variable portion is paid as 50% in cash and 50% in stocks with vesting period of 4 years.

Three members:

One is the independent member appointed by the minority shareholders

The independent member has veto power

Six members:


Board of Executive Officers

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 Vida Seguradora S.A

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

6 appointments

6 appointments

6 appointments

6 appointments

4 members

2 appointments

2 appointments

Brasildental Dental Insurance

3 members

1 appointment

1 appointment

Consensus 1 appointment



Scope of the Related-Party Committee

Captive access to Banco do Brasil’s network

20-year term

No termination clause

Signed in 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 its own broker, taking advantage of the captive access to Banco do Brasil distribution network.

Low complexity business model

Low capital needs

No underwriting risk

Own Brokerage

Competitive Advantage

Distribution Channel

Non-banking Channel

138 Partnerships (Affinity)

20,929 External Brokers

60.3 Million clients

5,474 Branches

63,536 ATMs

15,802 Banking Correspondents

32,646 Points of service in shared network

1º

Captive access to larger distribution network in Latin America


Strong Financial Performance

ROE 1Q14 (%)

Source: Companies and Susep

INSURANCE COMPANIES ASSOCIATED WITH BANKS

TRADITIONAL INSURANCE COMPANIES

Brokerage participation

BROKERS

49.6%

39.7%

26.0%

18.2%

35.3%

16.3% 15.3%12.5%

9.8% 9.4%

12.1%

6.6%

Macroeconomic Environment


Global Macroeconomic Data

World Economy - GDP Growth

World¹ 2.8%

USA¹ 1.8%

Euro Zone¹ 1.5%

China¹ 9.3%

Brazilian Economy

GDP Growth - Brasil² 2.7%

SELIC (ends of period)² 11.0%

SELIC (year avarage )² 11.7%

Inflation (IPCA)² 6.5%

Inflation (IGP-M)² 5.1%

Dollar (quotation in R$)² 1.86

1. Source: World Bank, 2. Source: Focus - Bacen do Brasil

2015E 2016E2014E20132012

-0.6% 1.1% 1.4% 1.5%

7.5%7.5%7.7%7.7%

2011

2.4%

3.0%2.9%2.8%2.7%

11.0%

2.6%

5.3%

5.5%

11.4%

2.05

7.2%

2.45

5.5%

5.9%

8.4%

10.0%

2.3%

2.34

7.7%

-0.4%

1.8%

3.5%3.4%3.2%2.5%

5.5%

2.50

1.7%

11.3%

11.0%

6.4%

2.58

0.9%

7.3%

8.5%

5.8%

1.9%

12.3%

12.0%

6.0%

7.8%


Bancassurance

BRANCHES IN BRAZIL

ACCOUNTS IN BRAZIL (MM) POPULATION WITH CHECKING ACCOUNT¹ (%)

BANCASSURANCE IN INSURANCE DISTRIBUTION (%)

Source: World Bank ; 1 – Data from 2011

Source: SUSEP ; 2 – Data as of November, 2013

Source: Febraban

15.2 19.3 21.4 24.3

21.222.1 21.4 20.5

14.715.4 16.9 14.65.65.5 4.9 5.06.45.4 4.7 4.6

36.8 32.3 30.7 31.0

63.2%67.7% 69.3% 69.0%

2010 2011 2012 2013²Banco do Brasil Bradesco Itaú

Caixa Santander Others

Market share

8389 92 97

9197 98 102

2009 2010 2011 2012

Checking accounts Savings accounts

97.088.0

71.063.8

55.9

44.1 42.2

UnitedKingdom

UnitedStates

Italy China Brazil Venezuela Chile

5,4745,028

4,678

3,288

2,255


15.0

11.6

3.8

11.0

6.9

9.28.4 8.4

5.3 5.6

3.7 3.14.5 3.9

1.52.5 2.3

0.1 0.5 0.71.7

0.9

3.2

2.6

9.2

1.4

5.3

2.32.8

2.0

4.3 3.3

4.5

3.62.3

2.4

4.02.8

1.7

3.6 3.2 2.61.3

1.1

Taiw

an

So

uth

Afr

ica

Net

her

lan

ds

Ho

ng

Ko

ng

So

uth

Ko

rea

Jap

an

Un

ite

d K

ingd

om

Fin

lan

d

Swit

zerl

and

Fran

ce

Un

ite

d S

tate

s

Ger

man

y

Ita

ly

Por

tuga

l

Slo

veni

a

Sp

ain

Ch

ile

Ve

nezu

ela

Bra

zil

Arg

en

tin

a

Chin

a

Me

xico

Global Insurance Industry

Insurance market presents low penetration level in Brazil

Insurance premiums1 / GDP (%, 2012)

Source: SUSEP and Swiss Re – Sigma 03/2013

1. Excluding businesses abroad

#42

Life Insurance Premium / GDP Non-Life Insurance Premium / GDP

#62

In Total Insurance

In Life Insurance


46.6

53.4

61.6

69.8

83.0

2009 2010 2011 2012 2013

Insurance Industry in Brazil

Source: SUSEP

INSURANCE PREMIUM EVOLUTION (MONTHLY - R$ BN) INSURANCE PREMIUM EVOLUTION (YEARLY - R$ BN)

4.0

5.0

6.0

7.0

8.0

9.0

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2012 2013 2014


156%

112%118%

108%

101%

84%

64% 62%

55%

40%

15% 14%

7%

170%

131%

122%

113%

105%

80%

67% 65%59%

41%

14% 13%

6%

Net

her

lan

ds

UK

Swit

zerl

and

US

Au

stra

lia

Can

adá

Sou

th A

fric

a

Jap

an

Ire

lan

d

Ho

ng

Ko

ng

Ge

rma

ny

Bra

zil¹

Fran

ce

2012 2013

Global Macroeconomic Scenario – Pension Plans

Pension market is growing in Brazil due to the life expectation increase

Pension Assets/GDP (%) 2

# 9

Source: Towers Watson 1. Brazil Pension Assets only include those from closed entities 2. Assets/GDP ratio for the world is calculated in USD and assets were estimated as of 31 Dec 2013

In assets


38.3

45.8

53.4

70.3

73.9

2009 2010 2011 2012 2013

Pension Plans Industry in Brazil

REVENUES (MONTHLY - R$ BN) CONTRIBUTIONS (YEARLY - R$ BN)

Source: SUSEP

2.5

3.5

4.5

5.5

6.5

7.5

8.5

9.5

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2012 2013 2014

Performance


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

Largest Insurance Broker in Latin America

Exclusive access to Banco do Brasil’s unique distribution network

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

46.7% ROAE in 1Q14

BB Seguridade at a Glance

2nd Largest P&C Insurance Company in Brazil

Around 2.4 million insured vehicles and R$ 2 billion in premiums written in 1Q14

126 employees at the holding and broker level

7,314 employees at the affiliates level

1. Adjusted ROAE, considering the distribution of dividends


SH1 - Premiums Written

Life¹ 13.7% -3.5% -0.6%

Rural 79.9% -44.1% 35.8%

Mortgage Life 63.8% 20.5% 22.8%

SH2 - Premiums Written

Vehicles -2.3% 4.8% 3.7%

Casualties 23.2% 5.9% 8.0%

BRASILPREV

Contributions -15.9% -24.1% -21.5%

Net Inflows -40.5% -97.0% -69.7%

BRASILCAP

Collections 19.2% 8.5% 11.1%

TOTAL

Premiums, contributions and collections -2.5% -2.5% -2.5%

Growth - BB Seguridade vs. Market

BB Seguridade Market (ex-

BB Seguridade)

Source: SUSEP 1. “Life” includes the segments life and credit life

Market

Segments

1º

1º

1º

1º


Leadership positions in all targeted segments

Source: SUSEP and Companies 1. Premiums earned; 2. Contributions; 3. Considering Life, Rural, Property and Casualty; 4. Collections

Market Share (1Q14)

LIFE INSURANCE¹ PENSION PLANS²

INSURANCE BROKERAGE (R$ MM)

1o

PREMIUM BONDS4

1º

INSURANCE – CONSOLIDATED¹,3

1º

1º

Market Leadership

Net Income Net Income Net Income Revenues Revenues Revenues

19.2%17.3%

13.1%11.9%

5.0%

34.3%

26.1%

21.2%

5.7% 5.5%

16.0%

11.7% 11.4%

8.3%7.2%

26.3%24.4%

11.7% 10.7%

6.2%

488

327

62

256

5919


7.258.00

9.0010.00

10.75

Mar/13 Jun/13 Sep/13 Dec/13 Mar/14

26 2643 44 47

12 8

20 25 2636 32

3642

52

-4 -1

10

19

27

1115

14

2213

-3

13

6

81 79

119

165 169

1Q13 2Q13 3Q13 4Q13 1Q14

SH1 SH2 Brasilprev Brasilcap IRB Others¹

8.49

9.039.39

9.60 9.7410.58

11.64

12.2812.66

12.88

11.12

12.0812.46

12.66

12.72

DI1F15 DI1F16 DI1F17 DI1F18 DI1F19

17.9

14.4

21.723.3

26.1

1Q13 2Q13 3Q13 4Q13 1Q14

Net Investment Income

NET INVESTMENT INCOME (R$ MM)

FORWARD YIELD CURVE (%) SELIC RATE (%)

CONTRIBUTION OF NET INVESTMENT INCOME TO EARNINGS (%)

12/30/2013

03/28/2013

Source: Focus – Banco Central do Brasil Source: ValorPro

1. BB Corretora + Holding

QoQ: + 2.8 p.p.

YoY: + 8.2 p.p.

03/31/2014

QoQ: + 2%

YoY: + 108%


10,16811,465

8,720

12,996

9,954

23.7% 25.3% 22.2% 26.1% 23.7%

1Q13 2Q13 3Q13 4Q13 1Q14Revenues Market share

455550 548

707649

34.7% 39.1% 38.0%53.5%

46.7%

1Q13 2Q13 3Q13 4Q13 1Q14Adjusted net income (R$ MM) ROAE Adjusted

SH129.3%

SH22.7%

Brasilprev21.0%

Brasilcap3.7%

BB Corretora42.5%

Others0.7%

SH111.8%

SH218.1%

Brasilprev59.4%

Brasilcap10.8%

BB Seguridade Performance

PREMIUMS, CONTRIBUTIONS AND COLLECTIONS (R$ MM) REVENUES BREAKDOWN

PROFITABILITY¹ EARNINGS BREAKDOWN

QoQ: - 23 %

YoY: - 2 %

QoQ: - 8 %

YoY: + 43%

1Q13 1Q14

1Q13 1Q14

SH126.4%

SH26.6%

Brasilprev20.1%

Brasilcap6.4%

BB Corretora39.2%

IRB1.3%

SH115.6%

SH220.4%

Brasilprev50.9%

Brasilcap13.1%

1 – To calculate the adjusted ROAE of 4Q13 and 1Q14 was considered the amount of R$ 6,125 million to equity of Dec/13 (adjusted by the dividends payment)


146

610

272

523

113

1Q13 2Q13 3Q13 4Q13 1Q14

1,201

1,783

1,521

1,739

1,556

1Q13 2Q13 3Q13 4Q13 1Q14

Life53.0%

Credit Life23.8%

Mortgage Life2.3%

Rural15.4% Other

5.6%

BREAKDOWN OF PREMIUMS WRITTEN PREMIUMS WRITTEN (R$ MM)

Life45.6%

Credit Life22.8%

Mortgage Life2.9%

Rural22.5%

Other6.3%

1,0551,173

1,249 1,216

1,443

1Q13 2Q13 3Q13 4Q13 1Q14

BB Mapfre SH1

QoQ: - 11 %

YoY: + 30 %

QoQ: + 19%

YoY: + 37%

QoQ: - 78%

YoY: - 22%

1Q13 1Q14

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


24.823.4 23.5 23.8 24.3

1Q13 2Q13 3Q13 4Q13 1Q14

35.138.7

36.4

27.8

38.5

1Q13 2Q13 3Q13 4Q13 1Q14

16.814.7

16.6 16.815.4

1Q13 2Q13 3Q13 4Q13 1Q14

76.7 76.8 76.568.4

78.3

1Q13 2Q13 3Q13 4Q13 1Q14

BB Mapfre SH1 – Adjusted Ratios¹

QoQ: + 9.9 p.p.

YoY: + 1.6 p.p.

QoQ: - 1.4 p.p.

YoY: - 1.4 p.p.

QoQ: + 10.8 p.p.

YoY: + 3.4 p.p.

QoQ: + 0.5 p.p.

YoY: - 0.5 p.p.

COMMISSION RATIO (%) LOSS RATIO (%)

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

1 - Adjusted ratios prepared distributing the line “result with reinsurance” among the other lines from the income statement


Pre-Fixed10.2%

Floating71.4%

Inflation Protected

7.0%

Others²11.4%

178 197 221

311

230

23.4% 27.7% 33.1% 48.2% 34.2%

1Q13 2Q13 3Q13 4Q13 1Q14

Adjusted Net Income (R$ MM) ROAE

5,9975,522 5,715 5,578

7,209

3,7744,452

4,7825,356

6,027

155.0% 152.4% 159.3%128.9% 108.9%


Investments + Receivables (MM) Technical Reserve (R$ MM) Solvency Ratio

58 57

95 97104

1Q13 2Q13 3Q13 4Q13 1Q14

BB Mapfre SH1

QoQ: + 7%

YoY: + 79%

QoQ: - 26%

YoY: + 30%

PROFITABILITY NET INVESTMENT INCOME (R$ MM)

SOLVENCY

1. Mark-to-market 2. Agrarian debt bonds, DPVAT, Investment funds

Pre-Fixed4.7%

Floating55.8%

Inflation Protected

6.9%

Others²32.5%

ASSETS UNDER MANAGEMENT BREAKDOWN1

MAR/13 MAR/14


Vehicles56.6%

Casualties29.1%

Other14.2%

1,722 1,8061,938 1,965 2,014

1Q13 2Q13 3Q13 4Q13 1Q14

Vehicles51.9%Casualties

33.3%

Other14.8%

114

22

184

42

16

1Q13 2Q13 3Q13 4Q13 1Q14

1,836 1,828

2,1222,008 2,030

1Q13 2Q13 3Q13 4Q13 1Q14

Mapfre BB SH2

QoQ: + 1%

YoY: + 11%

QoQ: + 3%

YoY: + 17%

QoQ: - 63%

YoY: - 86%

1Q13 1Q14

BREAKDOWN OF PREMIUMS WRITTEN

EARNED PREMIUM (R$ MM)

PREMIUMS WRITTEN (R$ MM)

CHANGE IN TECHNICAL RESERVES (R$ MM)


24.321.0

22.8 24.0 22.8

1Q13 2Q13 3Q13 4Q13 1Q14

98.793.8

99.8 99.8 96.1

1Q13 2Q13 3Q13 4Q13 1Q14

55.1 54.157.4

54.3 56.1

1Q13 2Q13 3Q13 4Q13 1Q14

19.3 18.7 19.6 21.5 17.2

1Q13 2Q13 3Q13 4Q13 1Q14

Mapfre BB SH2 – Adjusted Ratios¹

QoQ: - 3.7 p.p.

YoY: - 2.6 p.p.

QoQ: + 1.8 p.p.

YoY: + 1.0 p.p.

QoQ: - 4.3 p.p.

YoY: - 2.1 p.p.

QoQ: - 1.2 p.p.

YoY: - 1.5 p.p.

COMMISSION RATIO (%)

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

LOSS RATIO (%)

1 – Adjusted ratios prepared distributing the line “result with reinsurance” among the other lines from the income statement


40

28

65

83 86

1Q13 2Q13 3Q13 4Q13 1Q14

6,8466,101 6,266 6,149

7,080

5,449 5,6625,850 6,100 6,384

147.0% 143.2% 142.2%130.8% 128.5%


Investments + Receivables (MM) Technical Reserve (R$ MM) Solvency Ratio

25

80

39

56

86

4.0% 13.2% 6.2% 8.5%12.6%

1Q13 2Q13 3Q13 4Q13 1Q14


Mapfre BB SH2

QoQ: + 3%

YoY: + 116%

QoQ: + 54%

YoY: + 251%

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

SOLVENCY

1. Mark-to-market

Pre-Fixed16.5%

Floating30.0%

Inflation Protected

14.6%

Others38.8%

Pre-Fixed3.1%

Floating50.0%

Inflation Protected

4.0%

Others42.8%

MAR/13 MAR/14

ASSETS UNDER MANAGEMENT BREAKDOWN1


234255

271 271 268

1Q13 2Q13 3Q13 4Q13 1Q14

PGBL9.0%

VGBL

89.7%

Traditional¹1.3%

128145 153

167 175

53.8% 59.0% 58.4% 58.0% 59.9%

1Q13 2Q13 3Q13 4Q13 1Q14


PGBL9.5%

VGBL

88.2%

Traditional¹2.4%

6,038 5,895

3,694

7,414

5,064

1Q13 2Q13 3Q13 4Q13 1Q14

Pension Plans

QoQ: - 32%

YoY: - 16%

QoQ: - 1%

YoY: + 15%

QoQ: + 5%

YoY: + 37%

1Q13 1Q14

BREAKDOWN OF CONTRIBUTIONS

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

CONTRIBUTIONS (R$ MM)

1. Defined remuneration plan


Pre-Fixed5.5%

Floating6.0%

Inflation Protected

88.5%

Pre-Fixed6%

Floating5%

Inflation Protected

89%

PGBL23.7%

VGBL66.8%

Traditional¹9.5%

71,542 74,849 77,22983,543

87,769


PGBL26.5%

VGBL63.0%

Traditional¹10.5%

Pension Plans

MAR/13 MAR/14

RESERVES BREAKDOWN RESERVES (R$ MM)

TRADITIONAL PLANS PORTFOLIO ASSETS UNDER MANAGEMENT BREAKDOWN

Government Bonds73.1%

Securities²15.2%

Debentures and commercial

papers8.4%

Stocks3.3%


Securities²15.9%


papers7.2%

Stocks2.1%

MAR/13 MAR/13 MAR/14 MAR/14

QoQ: + 5%

YoY: + 23%

1. Defined remuneration plan

2. Securities = Time deposits, Time Deposit with Special Guarantee, Real Estate Receivables Certificate, Creditory Rights , Letras Hipotecárias and Letras Financeiras


4,237 4,543

8,780

2,519

138

2,657

Brasilprev Industry (ex-Brasilprev) Industry

1Q13 1Q14

9.8%

11.0%

12.5%

11.1%

10.6%

1Q13 2Q13 3Q13 4Q13 1Q14

1,759

3,661

6,023

7,775

1M13 2M13 3M13 4M13

1,187

2,726

5,064

7,724

1M14 2M14 3M14 4M14²

1Q14

Sporadic34.7%

Periodic Plans65.3%

Sporadic14.6%

Periodic Plans85.4%

Brasilprev vs. Market

NET INFLOWS (R$ MM) NEW SALES (QUANTITY OF PLANS)

REDEMPTION RATIO YEAR-TO-DATE CONTRIBUTIONS¹ (R$ MM)

1Q13

Source: Quantum Axis

1 – Information based on BR GAAP; 2 – Considers the preview of total contributions of April 2014

Market Share Brasilprev 1Q13: 48.3% 1Q14: 94.8%


-9-4

24

47

66

1Q13 2Q13 3Q13 4Q13 1Q14

Unique Payment

56.3%

Montlhy Payment

43.7% Unique Payment

59.5%

Montlhy Payment

40.5%1,093

1,958

1,383

1,834

1,303

1Q13 2Q13 3Q13 4Q13 1Q14

Premium Bonds

QoQ: - 29%

YoY: + 19%

QoQ: + 40%

YoY: + 812%

1Q13 1Q14

PREMIUM BONDS COLLECTION (R$ MM) COLLECTION BREAKDOWN

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

25 28 27

52

63

63.4% 63.9% 51.7%104.0% 129.2%

1Q13 2Q13 3Q13 4Q13 1Q14

Net Income (R$ MM) ROAE

QoQ: + 21%

YoY: + 148%


6,8447,866

8,4829,489 9,810



Securities¹5.3%


papers7.6%

Others11.2%

Premium Bonds

TECHNICAL RESERVES (R$ MM) SOLVENCY RATIO (%)

PORTFOLIO BREAKDOWN TRADING PORTFOLIO BREAKDOWN


Securities¹9.9%


papers12.8%

Others6.6%

Pre-Fixed41.4%

Floating37.8%

Inflation protected

19.7%

Stock Funds1.1%

Pre-Fixed38,6%

Floating54,8%

Inflation protected

5,3%

Stock Funds1,3%

MAR/13 MAR/14 MAR/13 MAR/14

1. Securities = Time deposits, Time Deposit with Special Guarantee, Real Estate Receivables Certificate, Creditory Rights , Letras Hipotecárias and Letras Financeiras

89.299.4

117.6

134.7

115.3


QoQ: + 3%

YoY: + 43%

QoQ: - 19.4 p.p.

YoY: + 26.1 p.p.


388

447 425

506 488

1Q13 2Q13 3Q13 4Q13 1Q14

194

232218

270 256

1Q13 2Q13 3Q13 4Q13 1Q14

Brokerage

1Q13 1Q14 QoQ: - 4%

YoY: + 26%

QoQ: - 5%

YoY: + 32%

SH149.1%

SH218.1%

Brasilprev19.7%

Brasilcap11.8%

Other1.3%

SH155.7%

SH216.6%

Brasilprev13.5%

Brasilcap13.8%

Other0.3%

REVENUES BREAKDOWN

EXPENSES BREAKDOWN & NET MARGIN (%)

BROKERAGE REVENUES (R$ MM)

ADJUSTED NET INCOME (R$ MM)

20.2 17.0 18.1 15.9 16.5

6.57.4 7.1 7.4 7.3

25.8 26.8 26.5 27.6 27.1

52.5 51.2 51.7 50.8 50.9

49.9% 51.8% 51.2% 53.2% 52.6%

1Q13 2Q13 3Q13 4Q13 1Q14

Operating expenses Tax expenses Income taxes Net Margin


Market Ratios

DIVIDEND YIELD P/E 2014E (R$)

EPS 2014E (R$)

Source: Bloomberg as of May, 13 ,2014

P/BV (R$)

20.9%

2.1% 1.2% 0.5% N/A

19.3716.16

11.58 10.208.64

2.81

1.63 1.47 1.381.00

8.18

2.931.91 1.63 1.56


Guidance 2014

Ratio 2014 Estimates 1Q14

¹Adjusted ROAE calculated considering the full distribution of dividends related to the FY 2013. The adjusted equity as of 2013 would be R$ 6,125 million.

BB Seguridade - Adjusted ROAE¹ 44% - 49% 46.7%

Premiums written growth - BB Mapfre SH1 24% - 32% 29.6%

Premiums written growth - Mapfre BB SH2 19% - 26% 10.6%

Collection growth - Pension Plans 33% - 47% -16.1%

Collection growth - Premium Bonds 10% - 15% 19.2%

Portfolio of Products


Our Products – SH1 Insurances

Definition: term life insurance 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: encompasses a group of three main products: crop insurance, rural lien insurance and credit life insurance to farmers.

Coverage: (i) Crop: any weather hazards and falling in the market prices of the crop; (ii) Lien: damage caused to the property, directly related to agricultural activities, which is provided as collateral of a rural loan; (iii) Credit life: in case of death of the insured the insurance company will prepay the rural loan.

Rural

Definition: insurance related to mortgage loans.

Coverage: in case of death or permanent disability the remaining balance of the loan will be prepaid. This product also protects the home of the insured from physical damage.

Mortgage Life

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

Coverage: in case of death the insured loan will be prepaid and his relatives will not inherit the debt.


Our Products – SH2 Insurances

Definition: A mandatory insurance related to accidents caused by vehicles in Brazil.

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

DPVAT

Definition: insurance sold to individuals or companies that provides protection

to vehicles.

Coverage: is an insurance policy designed to provide protection for vehicles against theft, physical damage and/or bodily injury resulting from traffic colli-sions, besides other assistances provided to the policy holder for their daily lives.

Auto

Definition: is a type of insurance sold to individuals and companies that provides protection against risks to properties linked or not to loans.

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

P&C


Our Products - BrasilPrev

Defined remuneration Guarantees a minimum yield composed of either inflation +6% or TR + 6%.

** No longer sold

Traditional Plan

Pension Plan designed for people who declare income taxes in the complete

form as contributions are deductible up to a limit of 12% of the clients taxable income.

PGBL

Pension Plan designed for people who declare income taxes in the simplified format or is exempt.

Focus on succession. 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

Premium Bonds

Premium bonds products are an alternative way to accumulate reserves, with maturity and interest rates previously determined, allowing the bond holder to be entitled to participate in lottery. The award occurs through periodic drawings, being most frequent the usage of a combination of numbers in a pre-determined series, based on the Brazilian Lottery.

Chances of Contemplation

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

Official Lottery 1 in 50,063,860


IR BB Seguridade

Contacts

Investor Relations Rua Manoel da Nóbrega, 1280 – 9º andar

04001-004 – São Paulo (SP) Telephone: (11) 2105-8444

Fax: (11) 2105-8499

www.bancodobrasilseguridade.com.br [email protected]

mailto:[email protected]

apresentação do powerpoint · the ceo of bb seguridade four members: elected among the active...

Documents