Apresentação do PowerPoint - BB...Fast Growing with High Profitability Net income grows 43% yoy...
Transcript of Apresentação do PowerPoint - BB...Fast Growing with High Profitability Net income grows 43% yoy...
Institutional Presentation
BBSEY
ADR - Level I
Overview
BB Seguridade Participações S.A. | Investor Relations 3
Track Record
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
Establishment of
BB Seguridade
1987
BB Corretora’s establishment
2013
IPO
Equity
investment in
IRB –Brasil RE
Brasildental
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
20.4%
20.4%
20%
74.9%
49.9%
50%
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
Antonio Rugero Guibo
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 – DEC/14 DEC/14
Banco do Brasil66.3%
Free-float33.8%
Foreign Investors
68.7%
Institutional 26.2%
Individuals5.1%
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 Reinsurance
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
133 Partnerships (Affinity)
21,501 External Brokers
61.6 Million clients
5,524 Branches
65,573 ATMs
15,538 Banking Correspondents
34,641 Points of service in shared network
1º
Captive access to larger distribution network in Latin America
BB Seguridade Participações S.A. | Investor Relations 13
52.6%
42.2%
27.8%25.5%
Strong Financial Performance
ROE 2014 (%)
Source: Companies and Susep 1. Data as of 3Q14
INSURANCE COMPANIES ASSOCIATED WITH BANKS
TRADITIONAL INSURANCE COMPANIES¹
Brokerage participation
BROKERS¹
29.9%
18.8%20.5%
16.9%
9.7%
12.1%
10.0%
Macroeconomic Environment
BB Seguridade Participações S.A. | Investor Relations 15
Global Macroeconomic Data
Source: World Bank and Focus 1. Brazilian Economy forecasts as of January 30, 2015 2. 2014E
2013 2014 2015E 2016E 2017E
World Economy - GDP Growth
World 2.4% 2.6% 3.0% 3.3% 3.2%
USA 1.9% 2.4% 3.2% 3.0% 2.4%
Euro Zone -0.4% 0.8% 1.1% 1.6% 1.6%
China 7.7% 7.4% 7.1% 7.0% 6.9%
Brazilian Economy¹
GDP Growth - Brazil² 2.5% 0.1% 0.0% 1.5% 2.0%
SELIC (ends of period) 8.2% 10.9% 12.5% 11.5% 10.5%
SELIC (year avarage ) na na 12.5% 11.7% 10.8%
Inflation (IPCA) 5.9% 6.4% 7.0% 5.6% 5.4%
Inflation (IGP-M) 5.5% 3.7% 5.9% 5.5% 5.2%
Dollar (quotation in R$) 2.34 2.66 2.80 2.90 3.00
BB Seguridade Participações S.A. | Investor Relations 16
97.088.0
71.063.8
55.9
44.1 42.2
UnitedKingdom
UnitedStates
Italy China Brazil Venezuela Chile
89 92 97103
97 98112
125
2010 2011 2012 2013
Checking accounts Savings accounts
Bancassurance
BRANCHES IN BRAZIL
ACCOUNTS IN BRAZIL (MM) POPULATION WITH CHECKING ACCOUNT¹ (%)
BANCASSURANCE IN INSURANCE DISTRIBUTION (%)
Source: World Bank ; 1 – Data as of 2011
Source: SUSEP
Source: Febraban
Source: Companies
15.2 19.3 21.4 24.5 27.2
21.222.1 21.4 20.6 19.8
14.715.4 16.9 14.3 12.65.65.5 4.9 5.0 4.96.45.4 4.7 4.8 4.5
36.8 32.3 30.7 30.8 31.0
63.2%67.7% 69.3% 69.2% 69.0%
2010 2011 2012 2013 2014Banco do Brasil Bradesco Itaú
Caixa Santander Others
Market share
5,5245,070
4,659
3,342
2,252
BB Seguridade Participações S.A. | Investor Relations 17
14.5
12.711.7
3.2
7.58.8 8.8 8.7
6.95.7
6.45.5
3.2 3.12.5 2.5
0.5
3.1
0.7 0.11.6
1.0
3.1
2.7
1.5
9.4
4.42.8 2.3 2.0
2.9
3.2 2.3
2.2
4.33.6
2.81.7
3.5
0.8
2.93.5
1.4
1.2
Taiw
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ica
Ho
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Sp
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Bra
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Global Insurance Industry
Insurance market presents low penetration level in Brazil
Insurance premiums1 / GDP (%, 2013)
Source: SUSEP and Swiss Re – Sigma 03/2014
1. Excluding businesses abroad
#38
Life Insurance Premium / GDP Non-Life Insurance Premium / GDP
#60
In Total Insurance
In Life Insurance
BB Seguridade Participações S.A. | Investor Relations 18
INSURANCE PREMIUM EVOLUTION (YEARLY - R$ BN)
Insurance Industry in Brazil
Source: SUSEP
INSURANCE PREMIUM EVOLUTION (MONTHLY - 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
53.4
61.6
69.8
82.7
89.2
2010 2011 2012 2013 2014
BB Seguridade Participações S.A. | Investor Relations 19
156%
112%118%
108%
101%
84%
64% 62%
55%
40%
23%
15%
7%
170%
122%
131%
113%
105%
80%
67% 65%59%
41%
21%
14%
6%
Net
her
lan
ds
Swit
zerl
and
UK
US
Au
stra
lia
Can
adá
Sou
th A
fric
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Jap
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Ire
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Ho
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Ko
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Bra
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Ge
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Fran
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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 were recalculated based on Abrapp and FENAPREVI data to include opened and 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
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
10,5
11,5
12,5
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2012 2013 2014
45.8
53.4
70.373.9
83.5
2010 2011 2012 2013 2014
Performance
BB Seguridade Participações S.A. | Investor Relations 22
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
Net income grows 43% yoy with ROAE of 49.8% in 2014
BB Seguridade at a Glance
121 employees at the holding and broker level
7,509 employees at the affiliates level
1. Adjusted ROAE, considering the total distribution of dividends
One of the Largest Insurance, Pension and Premium Bonds Companies in Latin America
R$ 16.3 billion in premiums written, R$ 31.0 billion in pension contributions and R$ 6.7 billion in premium bonds in 2014
2nd Largest P&C Insurance Company in Brazil
2.9 million insured vehicles and R$ 8.8 billion in premiums written in 2014
BB Seguridade Participações S.A. | Investor Relations 23
BB SeguridadeMercado (ex-
Brasilprev)Mercado
SH1 - Premiums Written
Life¹ 17.5% -1.5% 1.8%
Rural 22.0% 33.9% 26.6%
Mortgage Life 16.7% 22.2% 21.8%
TOTAL² 18.5% 1.8% 5.1%
SH2 - Premiums Written
Vehicles 10.9% 9.8% 10.0%
Casualties 22.9% 7.0% 9.0%
TOTAL² 15.2% 8.7% 9.6%
BRASILPREV
Contributions 34.7% 3.5% 13.2%
Net Inflows³ 49.2% 55.3% 52.0%
BRASILCAP
Collections 6.7% 3.0% 4.1%
TOTAL
Premiums, contributions and collections 24.6% 7.8% 11.9%
BB Seguridade and Market (2014 vs. 2013)
BB Seguridade Market (ex-
BB Seguridade
Source: SUSEP and Company 1 – Item “Life” includes the segments life and credit life 2 – Excluding the segment “Other” (Affinity, DPVAT and others)
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 written; 2. Contributions; 3. Considering Life, Rural, Property and Casualty; 4. Collections; 5. Data as of 9M14
Market Share (2014)
LIFE INSURANCE¹ PENSION PLANS²
INSURANCE BROKERAGE (R$ MM)5
1o
PREMIUM BONDS4
1º
INSURANCE – CONSOLIDATED¹,3
1º
1º
Market Leadership
Net Income Net Income Net Income Revenues Revenues Revenues
22.2%
15.6%13.5%
12.1%
5.6%
37.3%
28.4%
18.7%
4.9% 4.4%
30.6%
24.5%
11.2% 9.5%5.5%
17.4%
12.0%11.0%
7.4%6.1%
1.660
1.085
171
918
15045
BB Seguridade Participações S.A. | Investor Relations 25
10.0010.75 11.00 11.00
11.75
Dec/13 Mar/14 Jun/14 Sep/14 Dec/14
138200
65
116147
207
24
130
33
57
61
93
467
803
44 47 49 49 5525 26 33 28 3042 52 46 50 5919 27 40 29
3513 6
18 1717
22 1327 19
35165 169
212192
230
4Q13 1Q14 2Q14 3Q14 4Q14 2013 2014
SH1 SH2 Brasilprev Brasilcap IRB Others¹
23.326.1 25.1
23.325.4
20.7
24.9
4Q13 1Q14 2Q14 3Q14 4Q14 2013 2014
11.58
12.96 12.9112.75
12.61
10.58
11.64
12.28
12.66
12.88
10.95
11.95
12.25
12.31 12.34
DI1F15 DI1F16 DI1F17 DI1F18 DI1F19
Net Investment Income
NET INVESTMENT INCOME (R$ MM)
FORWARD YIELD CURVE (%) SELIC RATE (%)
CONTRIBUTION OF NET INVESTMENT INCOME TO EARNINGS (%)
12/30/2014
12/30/2014
Source: Banco Central do Brasil Source: ValorPro
1. BB Corretora + Holding
QoQ: + 2.1 p.p.
YoY: + 2.1 p.p.
09/30/2014
QoQ: + 20%
YoY: + 39%
+ 72%
+ 4.2 p.p.
BB Seguridade Participações S.A. | Investor Relations 26
12,9969,954
15,70712,463
15,872
43,349
53,996
22.2% 26.1% 23.6% 30.3% 26.1% 23.8% 26.9%
4Q13 1Q14 2Q14 3Q14 4Q14 2013 2014
Revenues Market share
707 649845 822 906
2,260
3,223
55.8% 49.0%64.9% 60.9% 66.0%
38.4% 49.8%
4Q13 1Q14 2Q14 3Q14 4Q14 2013 2014
Adjusted net income (R$ MM) ROAE Adjusted
SH113.8%
SH216.4%
Brasilprev57.5%
Brasilcap12.4%
SH114.4%
SH218.0%
Brasilprev53.2%
Brasilcap14.5%
SH130.1%
SH24.4%
Brasilprev19.6%
Brasilcap3.9%
BB Corretora40.4%
Others0.3%
IRB 1.3%
SH130.0%
SH24.2%
Brasilprev16.8%
Brasilcap6.7%
BB Corretora39.7%
IRB 2.6%
BB Seguridade Performance
PREMIUMS, CONTRIBUTIONS AND COLLECTIONS¹ (R$ MM) BREAKDOWN OF PREMUMS, CONTRIBUTIONS AND COLLECTIONS¹
PROFITABILITY EARNINGS BREAKDOWN²
QoQ: + 27%
YoY: + 22%
QoQ: + 10 %
YoY: + 28%
2014
1. Premiums written, pension plans contributions and premium bonds collections
+ 43%
+25%
2013
2013 2014²
2. Excluding the results of Brasildental and holding’s revenues and expenses
BB Seguridade Participações S.A. | Investor Relations 27
1,097 1,315 1,374 1,489 1,491
4,283
5,669
4Q13 1Q14 2Q14 3Q14 4Q14 2013 2014
499
125
511
-36
635
1,4191,235
4Q13 1Q14 2Q14 3Q14 4Q14 2013 2014
1,596 1,4401,885
1,4532,126
5,703
6,904
4Q13 1Q14 2Q14 3Q14 4Q14 2013 2014
Life46.7%
Credit Life31.1%
Mortgage Life1.9% Rural
16.9%
Other3.4%
Life41.4%
Credit Life34.2%
Mortgage Life2.3% Rural
18.3%
Other3.8%
BREAKDOWN OF RETAINED PREMIUMS RETAINED PREMIUMS (MM)
BB Mapfre SH1¹
QoQ: + 46%
YoY: + 33%
YoY: + 36%
CHANGES IN TECHNICAL RESERVES (R$ MM) EARNED PREMIUM (R$ MM)
- 13%
+ 21%
+ 32%
1 – Net of ceded reinsurance
2013 2014
YoY: + 27%
BB Seguridade Participações S.A. | Investor Relations 28
10.915.0 13.3 13.3
19.3
14.2 15.3
4Q13 1Q14 2Q14 3Q14 4Q14 2013 2014
28.3
37.5
31.5 31.7
24.6
33.631.1
4Q13 1Q14 2Q14 3Q14 4Q14 2013 2014
28.726.6 26.4 26.1 26.0 27.3 26.3
4Q13 1Q14 2Q14 3Q14 4Q14 2013 2014
67.8
78.971.0 71.0 69.8
75.0 72.5
4Q13 1Q14 2Q14 3Q14 4Q14 2013 2014
QoQ: - 7.1 p.p.
YoY: - 3.7 p.p.
BB Mapfre SH1 – Performance Ratios¹
QoQ: - 1.2 p.p.
YoY: + 2.0 p.p.
QoQ: + 6.0 p.p. YoY: + 8.4 p.p.
QoQ: - 0.1 p.p.
YoY: - 2.7 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
- 2.5 p.p. - 1.0 p.p.
+ 1.1 p.p.
- 2.5 p.p.
BB Seguridade Participações S.A. | Investor Relations 29
2.7
16.118.8
2.9
15.418.3
SH1 Market (ex-SH1) Market
2013 2014
1,5561,260
1,9331,342
1,993
5,400
6,528
4Q13 1Q14 2Q14 3Q14 4Q14 2013 2014
752 710 688 714 764
2,6852,876
4Q13 1Q14 2Q14 3Q14 4Q14 2013 2014
150199
152 154 144
649 648
4Q13 1Q14 2Q14 3Q14 4Q14 2013 2014
BB Mapfre SH1
PREMIUMS GROWTH | LIFE (R$ BI) – SH1 vs. MARKET PREMIUMS WRITTEN | LIFE (R$ MM)
PREMIUMS WRITTEN BANCASSURANCE (R$ MM) PREMIUMS WRITTEN OTHER CHANNEL¹ (R$ MM)
1 – Excluding DPVAT
QoQ: + 7%
YoY: + 2% + 7%
QoQ: + 48%
YoY: + 28%
+ 21% QoQ: - 7%
YoY: - 4%
- 0.1%
BB Seguridade Participações S.A. | Investor Relations 30
311230
337 363 367
907
1,297
48.2%34.2%
50.2% 56.0% 55.0%
29.6% 41.4%
4Q13 1Q14 2Q14 3Q14 4Q14 2013 2014
Adjusted Net Income (R$ MM) ROAE
97 104 109 109 122
307
444
4Q13 1Q14 2Q14 3Q14 4Q14 2013 2014
Pre-Fixed9.7%
Floating56.7%
Inflation Protected
10.4%
Others²23.3%
Pre-Fixed8.0%
Floating44.7%
Inflation Protected
0.8%Others²46.5%
BB Mapfre SH1
QoQ: + 11%
YoY: + 25%
QoQ: + 1%
YoY: + 18%
PROFITABILITY NET INVESTMENT INCOME (R$ MM)
SOLVENCY
1. Mark-to-market; 2- Agrarian debt bonds, DPVAT, Investment funds
ASSETS UNDER MANAGEMENT BREAKDOWN1
DEC/13 DEC/14
+ 45%
+43%
5.6
7.27.7 7.8
8.6
5.46.0
6.6 6.46.9
128.9% 108.9%132.0% 127.3% 125.9%
Dec/13 Mar/14 Jun/14 Sep/14 Dec/14
Investments + Receivables (BI) Technical Reserve (R$ BI) Solvency Ratio
BB Seguridade Participações S.A. | Investor Relations 31
1,718 1,787 1,746 1,794 1,811
6,6257,138
4Q13 1Q14 2Q14 3Q14 4Q14 2013 2014
1,725 1,762 1,898 2,019 1,970
6,9097,648
4Q13 1Q14 2Q14 3Q14 4Q14 2013 2014
7
-25
151
226
159
283
510
4Q13 1Q14 2Q14 3Q14 4Q14 2013 2014
Vehicles63.6%
Casualties22.2%
Other14.2%
Vehicles63.8%
Casualties23.3%
Other13.0%
Mapfre BB SH2
QoQ: - 2%
YoY: + 14%
QoQ: + 1%
YoY: + 5%
BREAKDOWN OF RETAINED PREMIUMS
EARNED PREMIUM (R$ MM)
RETAINED PREMIUMS¹ (R$ MM)
CHANGE IN TECHNICAL RESERVES (R$ MM)
1 – Net of ceded reinsurance
+ 11%
+ 80% + 8%
2013 2014
QoQ: - 30%
BB Seguridade Participações S.A. | Investor Relations 32
21.2 17.0 19.1 19.3 17.8 19.5 18.3
4Q13 1Q14 2Q14 3Q14 4Q14 2013 2014
99.8 96.1101.5 97.8 98.9 98.0 98.6
4Q13 1Q14 2Q14 3Q14 4Q14 2013 2014
25.023.4 22.4 22.3 23.6 24.1 23.0
4Q13 1Q14 2Q14 3Q14 4Q14 2013 2014
53.6 55.760.0
56.2 57.6 54.4 57.4
4Q13 1Q14 2Q14 3Q14 4Q14 2013 2014
Mapfre BB SH2 – Performance Ratios¹
QoQ: +1.1 p.p.
YoY: - 0.9 p.p.
QoQ: + 1.4 p.p.
YoY: + 4.0 p.p.
QoQ: - 1.5 p.p.
YoY: - 3.4 p.p.
QoQ: + 1.3 p.p.
YoY: - 1.4 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
+ 3.0 p.p. - 1.1 p.p.
- 1.2 p.p. + 0.6 p.p.
BB Seguridade Participações S.A. | Investor Relations 33
6.17.1
7.6 7.7 7.6
6.1 6.4 6.6 7.1 7.3
130.8% 128.5% 133.6%127.4%
139.0%
Dec/13 Mar/14 Jun/14 Sep/14 Dec/14
Investments + Receivables (BI) Technical Reserve (R$ BI) Solvency Ratio
5686
4671 71
199
275
8.5% 12.6% 6.5% 9.8% 9.6% 7.5% 9.2%
4Q13 1Q14 2Q14 3Q14 4Q14 2013 2014
Adjusted Net Income (R$ MM) ROAE
83 86109 92 100
216
387
4Q13 1Q14 2Q14 3Q14 4Q14 2013 2014
QoQ: + 8%
YoY: + 20% + 79%
Mapfre BB SH2
QoQ: + 1%
YoY: + 28%
PROFITABILITY (R$ MM) NET INVESTMENT INCOME (R$ MM)
SOLVENCY
1. Mark-to-market ; 2- Agrarian debt bonds, DPVAT, Investment funds
DEC/13 DEC/14
ASSETS UNDER MANAGEMENT BREAKDOWN1
+ 38%
Pre-Fixed11.7%
Floating49.7%
Inflation Protected
5.2%
Others²33.3%
Pre-Fixed2.8%
Floating43.1%
Inflation Protected
2.2%
Others²51.8%
BB Seguridade Participações S.A. | Investor Relations 34
7.45.1
9.37.2
9.5
23.0
31.0
4.82.5
7.04.4
6.6
13.8
20.5
11.1% 10.6%8.9% 8.5% 9.0%
11.2%9.2%
4Q13 1Q14 2Q14 3Q14 4Q14 2013 2014
Contributions Net Inflows Redemptions ratio
167 175 166 186 201
592
729
58.0% 59.9% 54.5% 58.7% 54.8%46.3% 42.6%
4Q13 1Q14 2Q14 3Q14 4Q14 2013 2014Adjusted Net Income (R$ MM) ROAE
271 268 287 333 347
1,031
1,236
4Q13 1Q14 2Q14 3Q14 4Q14 2013 2014
PGBL10.8%
VGBL87.4%
Traditional¹
1.8%
PGBL7.9%
VGBL90.5%
Traditional¹
1.6%
Brasilprev
QoQ: + 4%
YoY: + 28%
QoQ: + 8%
YoY: + 21%
BREAKDOWN OF CONTRIBUTIONS
PROFITABILITY (R$ MM) MANAGEMENT FEE (R$ MM)
CONTRIBUTIONS & NET INFLOW (R$ BI)
1. Defined remuneration plan
+ 20%
+ 23%
2013 2014
BB Seguridade Participações S.A. | Investor Relations 35
83.5 87.897.0
103.4111.9
Dec/13 Mar/14 Jun/14 Sep/14 Dec/14
Government Bonds75.1%
Securities²14.9%
Debentures and commercial
papers7.7%
Stocks2.3%
Government Bonds78.6%
Securities²13.9%
Debentures and commercial
papers6.0%
Stocks1.5%
PGBL20.8%
VGBL71.9%
Traditional¹7.3%PGBL
24.3%
VGBL66.0%
Traditional¹9.7%
Pre-Fixed5.7%
Floating3.5%
Inflation Protected
90.8%
Pre-Fixed6.8%
Floating3.3%
Inflation Protected
89.9%
Brasilprev
DEC/13 DEC/14
RESERVES BREAKDOWN RESERVES (R$ BI)
TRADITIONAL PLANS PORTFOLIO ASSETS UNDER MANAGEMENT BREAKDOWN
DEC/13 DEC/13 DEC/14 DEC/14
QoQ: + 8%
YoY: + 34%
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 36
13.811.3
25.1
20.517.6
38.1
Brasilprev Industry (ex-Brasilprev) Industry
2013 2014
Brasilprev54.8%
Industry (ex-Brasilprev)
45.2%Brasilprev
53.8%
Industry (ex-Brasilprev)
46.2%
NET INFLOWS (R$ BI) MARKET SHARE – NET INFLOW
Source: Quantum Axis
Source: SUSEP
Brasilprev vs. Market
2013 2014
MARKET SHARE ASSET UNDER MANAGEMENT | P/VGBL (%)
30.7% 30.3%29.1% 28.9%
27.6%
16.7%
18.4%
20.8%
23.2%
26.4%25.4% 25.6%26.4%
25.5%
24.8%
2010 2011 2012 2013 2014
Competitor A Brasilprev Competitor B
BB Seguridade Participações S.A. | Investor Relations 37
1,8341,303
1,9601,396
2,028
6,2706,687
4Q13 1Q14 2Q14 3Q14 4Q14 2013 2014
4766
10073 87
59
325
4Q13 1Q14 2Q14 3Q14 4Q14 2013 2014
52 6389 74
98132
324
104.0%129.2%
171.0%116.4% 148.7%
57.1%92.2%
4Q13 1Q14 2Q14 3Q14 4Q14 2013 2014
Net Income (R$ MM) ROAE
Unique Payment
60.7%
Montlhy Payment
39.3%
Unique Payment
70.2%
Montlhy Payment
29.8%
Brasilcap
QoQ: + 45%
YoY: + 11%
QoQ: + 19%
YoY: + 82%
PREMIUM BONDS COLLECTION (R$ MM) COLLECTION BREAKDOWN
PROFITABILITY (R$ MM) NET INVESTMENT INCOME (R$ MM)
QoQ: + 32%
YoY: + 89%
+ 7%
+145%
+452%
2013 2014
BB Seguridade Participações S.A. | Investor Relations 38
134.7
115.3
140.1
117.4
153.2
Dec/13 Mar/14 Jun/14 Sep/14 Dec/14
9,489 9,810 10,359 10,99511,752
Dec/13 Mar/14 Jun/14 Sep/14 Dec/14
Pre-Fixed53.0%
Floating42.9%
Inflation protected
3.2%
Stock Funds0.9%
Pre-Fixed43.7%
Floating49.6%
Inflation protected
5.5%
Stock Funds1.3%
Government Bonds77.7%
Securities¹5.6%
Debentures and commercial
papers8.6%
Others8.1%
Government Bonds71.3%
Securities¹15.1%
Debentures and commercial
papers5.8%
Others7.8%
Brasilcap
TECHNICAL RESERVES (MM) SOLVENCY RATIO (%)
PORTFOLIO BREAKDOWN TRADING PORTFOLIO BREAKDOWN
DEC/13 DEC/14 DEC/13 DEC/14
1. Securities = Time deposits, Time Deposit with Special Guarantee, Real Estate Receivables Certificate, Creditory Rights , Letras Hipotecárias and Letras Financeiras
QoQ: + 7%
YoY: + 24%
QoQ: + 35.8 p.p.
YoY: + 18.5 p.p.
BB Seguridade Participações S.A. | Investor Relations 39
15.9 16.5 11.8 10.8 10.8 17.6 12.3
7.4 7.37.4 7.3 7.5
7.27.4
27.6 27.129.0 29.2 29.5
26.728.8
50.8 50.9 48.3 47.4 47.8 51.5 48.5
53.2% 52.6% 56.1% 56.7% 57.4%51.7%
55.9%
4Q13 1Q14 2Q14 3Q14 4Q14 2013 2014
Operating expenses Tax expenses Income taxes Net Margin
270 256342 319 372
913
1,289
4Q13 1Q14 2Q14 3Q14 4Q14 2013 2014
506 488610 563 648
1,766
2,308
4Q13 1Q14 2Q14 3Q14 4Q14 2013 2014
SH152.9%
SH214.2%
Brasilprev16.5%
Brasilcap16.1%
Other0.4%
SH150.3%
SH217.3%
Brasilprev15.6%
Brasilcap16.3%
Other0.5%
BB Corretora
QoQ: + 15%
YoY: + 28%
QoQ: + 17%
YoY: + 38%
REVENUES BREAKDOWN
EXPENSES BREAKDOWN & NET MARGIN (%)
BROKERAGE REVENUES (R$ MM)
ADJUSTED NET INCOME (R$ MM)
+ 31%
+ 41%
QoQ: + 0.4 p.p.
YoY: - 3.0 p.p.
- 3.0 p.p.
2013 2014
BB Seguridade Participações S.A. | Investor Relations 40
25.80
15.84
10.067.53
4.07
2.78
1.901.55
0.880.53
Market Ratios¹
DIVIDEND YIELD P/E 2014E (R$)
EPS 2014E (R$)
Source: Bloomberg as of February 10th ,2015
1. BB Seguridade estimates for 2015E . Other companies estimates for 2014E
P/BV (R$)
82.8%
2.0% 1.4% 0.3% N/A
8.62
2.68
1.51 1.02
0.43
BB Seguridade Participações S.A. | Investor Relations 41
BB Seguridade - Adjusted Net Income (R$ BI) 3.6 - 3.9
Premiums written growth - BB Mapfre SH1 15% - 21%
Reserves P/VGBL - Brasilprev 27% - 36%
Guidance 2015
Ratios
Estimates 2015
Portfolio of Products
BB Seguridade Participações S.A. | Investor Relations 43
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 44
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 45
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 46
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 47
Appendix
BB Seguridade Participações S.A. | Investor Relations 48
1,739 1,5562,148
1,5532,175
6,244
7,432
4Q13 1Q14 2Q14 3Q14 4Q14 2013 2014
Life43.0%
Credit Life28.4%
Mortgage Life2.5%
Rural23.0%
Other3.1%
Life38.7%
Credit Life31.8%
Mortgage Life2.4%
Rural23.5%
Other3.6%
PREMIUMS WRITTEN (R$ MM) BREAKDOWN OF PREMIUMS WRITTEN
QoQ: + 40%
YoY: + 25% + 19%
SH1
2013 2014
EXPANDED COMBINED RATIO (%)
62.3
73.165.8 66.1 64.6
70.0 67.2
4Q13 1Q14 2Q14 3Q14 4Q14 2013 2014
QoQ: - 1.5 p.p.
YoY: + 2.3 p.p.
- 2.8 p.p.
BB Seguridade Participações S.A. | Investor Relations 49
95.2 91.7 95.5 93.0 93.7 94.9 93.5
4Q13 1Q14 2Q14 3Q14 4Q14 2013 2014
Vehicles56.4%
Casualties31.0%
Other12.6%
Vehicles55.2%
Casualties33.5%
Other11.3%
2,008 2,030 2,250 2,363 2,203
7,7948,846
4Q13 1Q14 2Q14 3Q14 4Q14 2013 2014
PREMIUMS WRITTEN (R$ MM)
EXPANDED COMBINED RATIO (%)
BREAKDOWN OF PREMIUMS WRITTEN
2013 2014 QoQ: - 7%
YoY: + 10% +13%
SH2
QoQ: + 0.7 p.p.
YoY: - 1.5 p.p. - 1.4 p.p.
BB Seguridade Participações S.A. | Investor Relations 50
IR BB Seguridade
Contacts
Investor Relations Rua Manoel da Nóbrega, 1280 – 9º floor
04001-004 – São Paulo (SP) Telephone: +55 11 2105-8444
Fax: +55 11 2105-8499
www.bancodobrasilseguridade.com.br [email protected]