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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
BB Seguridade Participações S.A. | Investor Relations 4
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
BB Seguridade Participações S.A. | Investor Relations 5
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
BB Seguridade Participações S.A. | Investor Relations 6
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%
BB Seguridade Participações S.A. | Investor Relations 7
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.
BB Seguridade Participações S.A. | Investor Relations 8
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:
BB Seguridade Participações S.A. | Investor Relations 9
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
BB Seguridade Participações S.A. | Investor Relations 10
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
BB Seguridade Participações S.A. | Investor Relations 11
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
BB Seguridade Participações S.A. | Investor Relations 12
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
BB Seguridade Participações S.A. | Investor Relations 13
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
BB Seguridade Participações S.A. | Investor Relations 15
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%
BB Seguridade Participações S.A. | Investor Relations 16
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
BB Seguridade Participações S.A. | Investor Relations 17
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
BB Seguridade Participações S.A. | Investor Relations 18
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
BB Seguridade Participações S.A. | Investor Relations 19
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
BB Seguridade Participações S.A. | Investor Relations 20
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
BB Seguridade Participações S.A. | Investor Relations 22
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
BB Seguridade Participações S.A. | Investor Relations 23
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
BB Seguridade Participações S.A. | Investor Relations 24
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
BB Seguridade Participações S.A. | Investor Relations 25
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%
BB Seguridade Participações S.A. | Investor Relations 26
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)
BB Seguridade Participações S.A. | Investor Relations 27
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)
BB Seguridade Participações S.A. | Investor Relations 28
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
BB Seguridade Participações S.A. | Investor Relations 29
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%
Mar/13 Jun/13 Sep/13 Dec/13 Mar/14
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
BB Seguridade Participações S.A. | Investor Relations 30
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)
BB Seguridade Participações S.A. | Investor Relations 31
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
BB Seguridade Participações S.A. | Investor Relations 32
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%
Mar/13 Jun/13 Sep/13 Dec/13 Mar/14
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
Adjusted Net Income (R$ MM) ROAE
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
BB Seguridade Participações S.A. | Investor Relations 33
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
Adjusted Net Income (R$ MM) ROAE
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
BB Seguridade Participações S.A. | Investor Relations 34
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
Mar/13 Jun/13 Sep/13 Dec/13 Mar/14
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%
Government Bonds74.8%
Securities²15.9%
Debentures and commercial
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
BB Seguridade Participações S.A. | Investor Relations 35
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%
BB Seguridade Participações S.A. | Investor Relations 36
-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%
BB Seguridade Participações S.A. | Investor Relations 37
6,8447,866
8,4829,489 9,810
Mar/13 Jun/13 Sep/13 Dec/13 Mar/14
Government Bonds76.0%
Securities¹5.3%
Debentures and commercial
papers7.6%
Others11.2%
Premium Bonds
TECHNICAL RESERVES (R$ MM) SOLVENCY RATIO (%)
PORTFOLIO BREAKDOWN TRADING PORTFOLIO BREAKDOWN
Government Bonds70.7%
Securities¹9.9%
Debentures and commercial
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
Mar/13 Jun/13 Sep/13 Dec/13 Mar/14
QoQ: + 3%
YoY: + 43%
QoQ: - 19.4 p.p.
YoY: + 26.1 p.p.
BB Seguridade Participações S.A. | Investor Relations 38
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
BB Seguridade Participações S.A. | Investor Relations 39
Market Ratios
DIVIDEND YIELD P/E 2014E (R$)
EPS 2014E (R$)
Source: Bloomberg as of May, 13 ,2014
P/BV (R$)
20.9%
2.1% 1.2% 0.5% N/A
19.3716.16
11.58 10.208.64
2.81
1.63 1.47 1.381.00
8.18
2.931.91 1.63 1.56
BB Seguridade Participações S.A. | Investor Relations 40
Guidance 2014
Ratio 2014 Estimates 1Q14
¹Adjusted ROAE calculated considering the full distribution of dividends related to the FY 2013. The adjusted equity as of 2013 would be R$ 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
BB Seguridade Participações S.A. | Investor Relations 42
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.
BB Seguridade Participações S.A. | Investor Relations 43
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
BB Seguridade Participações S.A. | Investor Relations 44
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
BB Seguridade Participações S.A. | Investor Relations 45
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
BB Seguridade Participações S.A. | Investor Relations 46
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 ri@bbseg.com.br
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