Post on 26-Nov-2018
BB Seguridade Participações S.A. | Investor Relations 3
Track Record
1981
Establishment of BB’s insurance operations
1993
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
IRB –Brasil RE
Equity
investment in
Brasildental
Partnership
with Odontoprev
2014
Establishment
of
ADR – Level I
BB Seguridade Participações S.A. | Investor Relations 4
Estrutura Acionária - Parcerias Ownership Structure
Brasilcap
Premium Bonds
100%
BB Seguros BB Corretora
BB MAFPRE SH1
Life, Mortgage Life and Rural
MAPFRE BB SH2
P&C
Brasilprev
Pension Plans
Free Float (Post-IPO)
74.9%
49.9%
50.0%
100%
50.0%
49.0%
50.0%
74.9%
49.9%
50.0%
66.7%
49.9%
66.7%
66.25% 33.75%
IRB –Brasil Re
Reinsurance
Brasildental
Dental Insurance
20.4%
20.4%
20.0%
74.9%
49.9%
50.0%
BB Seguridade Economic Stake (%)
BB Seguridade Voting Stake (%)
Board of Directors Representation (%)
BB Seguridade
50.0% 50.0% 50.0% 100.0% - 50.0%¹ Board of Executive Officers Representation (%)
1. One of the members is elected by consensus.
BB Seguridade Participações S.A. | Investor Relations 5
ESTRUTURA ORGANIZACIONAL BB SEGURIDADE
CEO José Maurício Pereira Coelho
Chief Financial Officer
Werner Romera Suffert
Chief Risk Officer
Antonio Rugero Guibo
Chief Marketing Officer
Ângela Beatriz de Assis
Executive Board
Board of Directors
General Meeting
Fiscal Council
Audit Committee
Related-party Committee
Internal Audit
Internal Structure
BB Seguridade Participações S.A. | Investor Relations 6
Shareholders Structure
TOTAL CAPITAL BREAKDOWN – DEC/2016
FREE-FLOAT BREAKDOWN¹ – DEC/2016
Foreign Investors
83.6%
Institutional 11.7%
Individuals4.7%
Banco do Brasil66.3%
Free-float33.8%
¹ Does not include treasury stocks.
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
Board of Executive Officers:
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.
Only common shares
100% tag along
80% payout (semi annual dividends)
Stocks
Related-party Committee
Three members:
One is the independent member appointed by the minority shareholders
The independent member has veto power
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 one appointed by the Ministry of Treasury
One member appointed by the minority shareholders
The CEO of BB Seguridade
Six members:
BB Seguridade Participações S.A. | Investor Relations 9
Access to Banco do Brasil’s network
Banking Fee
BB Seguridade Equity Income
Equity Income 66,25%
Any proposal for changes in the agreements must be examined by the Related-party Committee where the independent member has a veto power
Cost Reimbursement
Brokerage Income
BB Seguridade Participações S.A. | Investor Relations 10
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%
Backed by Banco do Brasil with Expertise of Private Partnerships
Banco do BrasilAgreement with BB Corretora for distribution of
products in Banco do Brasil 's branches20 January-13 January-33
Mapfre Joint Venture 20 June-11 June-31
Principal Joint Venture 23 April-10 October-32
Icatu Partnership No defined term June-05 -
Aliança da Bahia Partnership No defined term June-05 -
Odontoprev Joint Venture 20 September-15 September-35
RelationshipTerm of the
agreements (years)Partnership Start End
BB Seguridade Participações S.A. | Investor Relations 11
Bank Channel
BB Seguridade strategy focuses on bancassurance with its own broker, taking advantage of the 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
141 Partnerships (Affinity) 19,956 External Brokers
64.8 Million clients
5,440 Branches
63,706 ATMs
14,361 Banking correspondents
35,708 Points of service in shared network
1º
Access to the largest distribution network in Latin America
BB Seguridade Participações S.A. | Investor Relations 12
31.6%
15.5%12.9% 10.9% 10.3% 8.9%
173.7%
51.8%
23.1%
Strong Financial Performance
ROAE¹ 2016(%)
Source: Companies and Susep 1. Odontoprev and SulAmerica data as of 9M16
INSURANCE COMPANIES ASSOCIATED WITH BANKS
TRADITIONAL INSURANCE COMPANIES
Brokerage participation
BB Seguridade Participações S.A. | Investor Relations 14
Global Macroeconomic Data
1. Source: World Bank - forecast s as of January, 2017 2. Source: Focus - forecasts as of Feb 10, 2017 3. GDP Growth 2016E
2015 2016 2017E 2018E 2019E
World Economy - GDP Growth¹
World 2.7% 2.3% 2.7% 2.9% 2.9%
USA 2.6% 1.6% 2.2% 2.1% 1.9%
Euro Zone 2.0% 1.6% 1.5% 1.4% 1.4%
China 6.9% 6.7% 6.5% 6.3% 6.3%
Brazilian Economy²
GDP Growth - Brazil³ -3.8% -3.5% 0.5% 2.3% 2.5%
SELIC (ends of period) 13.3% 14.0% 9.5% 9.0% 9.0%
SELIC (year average ) n.a. n.a. 10.8% 9.3% 9.0%
Inflation (IPCA) 10.7% 6.3% 4.5% 4.5% 4.5%
Inflation (IGP-M) 10.7% 7.2% 5.0% 4.8% 4.5%
Dollar (quotation in R$) 3.90 3.26 3.36 3.49 3.55
BB Seguridade Participações S.A. | Investor Relations 15
24.5 27.2 27.5 28.5
20.6 19.8 20.6 20.6
14.3 12.6 11.4 11.55.0 4.9 5.0 5.34.8 4.5 5.1 5.6
30.8 31.0 30.4 28.5
69.2% 69.0% 69.6% 71.5%
2013 2014 2015 2016
Banco do Brasil Bradesco Itaú
Caixa Santander Others
Market-share (%)
98.993.6
87.378.9
68.1
56.9
38.3
UnitedKingdom
United States Italy China Brazil Venezuela Colombia
5,440 5,314
4,537
3,411
2,254
Bancassurance
BRANCHES IN BRAZIL¹
FINANCIAL INCLUSION¹ (%) POPULATION WITH CHECKING ACCOUNT¹ (%)
BANCASSURANCE IN INSURANCE DISTRIBUTION
Source: SUSEP
Source: Febraban 1. CPFs with active relationship in Brazilian Financial System /Economically active population
51.0 53.0 55.0 57.060.0
2010 2011 2012 2013 2014
Source: Companies 1. Data as of Dec/16, except from Caixa, which data is of Sep/16.
Source: World Bank 1. Data as of 2014
BB Seguridade Participações S.A. | Investor Relations 16
15.7
13.312.0
9.7
7.38.3
2.4
7.56.7 6.2 6.6
3.1
4.8
2.9 2.42.9
0.1 0.52.0
2.7
0.6 1.0
3.2
1.5
2.7
2.2
4.1 2.6
8.4
2.42.7
3.1 2.1
4.2
2.3
3.4
2.8 1.8
3.9 3.41.6
0.7
2.71.2
Taiw
an
Ho
ng
Ko
ng
So
uth
Afr
ica
Fin
lan
d
So
uth
Ko
rea
Jap
an
Net
her
lan
ds
Un
ite
d K
ing
do
m
Den
mar
k
Fran
ce
Ita
ly
Un
ite
d St
ate
s
Por
tuga
l
Ger
man
y
Sp
ain
Ch
ile
Ve
ne
zue
la
Bra
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Chin
a
Indi
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Arg
en
tin
a
Me
xico
Global Insurance Industry
Insurance market presents low penetration level in Brazil
Insurance premiums1 / GDP (%, 2015)
Source: SUSEP and Swiss Re – Sigma 06/2016
1. Excluding businesses abroad
#39
Life Insurance Premium / GDP Non-Life Insurance Premium / GDP
#61
In Total Insurance
In Life Insurance
BB Seguridade Participações S.A. | Investor Relations 17
166%
127%
113%
121%116%
85%
60%
69%
54%
41%
22%
14%
6%
184%
121% 120% 119%112%
97%
67%
57% 56%
40%
21%
13%6%
Net
her
lan
ds
US
Au
stra
lia
Swit
zerl
and
UK
Can
ada
Jap
an
Sou
th A
fric
a
Ire
lan
d
Ho
ng
Ko
ng
Bra
zil¹
Ge
rma
ny
Fran
ce
2014 2015
Global Pension Plans Industry
Pension market is growing in Brazil due to the life expectation increase
Pension Assets/GDP² (%)
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 Dec 31, 2015.
# 10 In assets
BB Seguridade Participações S.A. | Investor Relations 18
157.0
177.6
194.6
212.5
231.3
2012 2013 2014 2015 2016
69.8
82.7
89.292.0 93.4
2012 2013 2014 2015 2016
INSURANCE INDUSTRY EVOLUTION (R$ BN)
Insurance Industry in Brazil
Source: SUSEP.
INSURANCE PREMIUMS WRITTEN EVOLUTION (R$ BN)
BB Seguridade Participações S.A. | Investor Relations 19
70.373.9
83.5
99.0
117.5
2012 2013 2014 2015 2016
Pension Plans Industry in Brazil
AuM (R$ BN) CONTRIBUTIONS (R$ BN)
Source: SUSEP
338.6
373.2
442.0
536.3
661.6
2012 2013 2014 2015 2016
Source: Fenaprevi
BB Seguridade Participações S.A. | Investor Relations 21
Largest Insurance Broker in Latin America
Access to Banco do Brasil’s unique distribution network
Leading Presence in both, contributions and net inflows in Pension Plans
P/VGBL reserves amounted to R$ 188.3 billion in December 2016
Insurance Operations, Pension Plans and Premium Bonds managed through private partnerships with global leaders
Net Income Growth with High Profitability
ROAE of 51.8% in 2016
BB Seguridade at a Glance
168 employees at the holding and broker level, and
7,109 employees at the affiliates level.
One of the Largest Insurance, Pension and Premium Bonds Companies in Latin America
R$15.8 billion in premiums written, R$47.4 billion in pension contributions and R$5.6 billion in premium bonds in 2016
2nd Largest P&C Insurance Company in Brazil
2.4 million insured vehicles and R$ 8.4 billion in premiums written in 2016
BB Seguridade Participações S.A. | Investor Relations 22
Market Share – 2016
Segments Market Size
(R$ MM) BBSE (%)
Main Competitors
Insurance premiums written
Life 23,493 16.1%
# 1
19.8%
# 3
11.3%
Credit life 7,734 19.6%
# 2
16.9%
# 3
16.4%
Rural 3,690 74.2%
# 2
4.2%
# 3
3.9%
Auto 32,560 12.5%
# 1
28.7%
# 3
12.1%
Pension plans
Contributions 117,504 40.6%
# 2
26.8%
# 3
17.5%
P/VGBL Reserves 605,459 30.9%
# 2
25.6%
# 3
23.5%
Premium bonds
Collection 20,313 24.0%
# 1
28.9%
# 3
14.4%
Reserves 29,402 36.6%
# 2
25.5%
# 3
10.8%
Source: Susep
# 2
# 2
# 1
# 1
# 1
# 1
# 2
# 1
BB Seguridade Participações S.A. | Investor Relations 23
SH130.6%
SH25.2%Brasilprev
16.2%
Brasilcap6.3%
IRB 3.9%
BB Corretora37.8%
SH112.6%
SH215.1%
Brasilprev61.4%
Brasilcap10.8%
2016
BB Seguridade Performance
PREMIUMS, CONTRIBUTIONS AND COLLECTIONS1 BREAKDOWN OF PREMIUMS, CONTRIBUTIONS AND COLLECTIONS¹
PROFITABILITY EARNINGS BREAKDOWN¹
2015 2016
1. Premiums written, pension plans contributions and premium bonds collections
2015
1. It does not consider the Holding’s revenues and expenses.
1. Premiums written, pension plans contributions and premium bonds collections
33,322
43,349
53,99660,176
68,876
21.4% 24.5% 27.0% 27.5% 28.5%
2012 2013 2014 2015 2016
Revenues (R$ MM) Market share
CAGR 2012-2016 20% SH1
10.7%
SH212.2%
Brasilprev68.9%
Brasilcap8.2%
1,754
2,260
3,223
3,945 4,107
32.9% 38.4% 49.8% 54.8% 51.8%
2012 2013 2014 2015 2016
Adjusted net income (R$ MM) ROAE
CAGR 2012-2016 24% SH1
29.7%
SH23.0%Brasilprev
18.0%Brasilcap
7.0%IRB 4.1%
Brasildental0.1%
BB Corretora38.3%
BB Seguridade Participações S.A. | Investor Relations 24
553488
861
1,225 1,263
31.5% 21.6% 26.7% 31.1% 30.7%
2012 2013 2014 2015 2015
Net investment income % Net income
CAGR 2012-2016 23%
Net Investment Income
FORWARD YIELD CURVE (%) AVERAGE SELIC RATE (%)
ASSET ALLOCATION
Source: Focus - Bacen do Brasil Source: ValorPro
NET INVESTMENT INCOME (R$ MM)
DEC/15 DEC/16
8.53 8.15
10.81
13.2714.02
2012 2013 2014 2015 2016
15.57 15.81 15.77 15.66 15.5713.77
12.2011.62 11.56 11.57
15.87
16.53 16.75 16.71 16.62
13.63
11.5211.03 11.19 11.33
DI1F17 DI1F18 DI1F19 DI1F20 DI1F21
Dec/2015
Sep/2015
Sep/2016
Dec/2016
Pre-fixed28.4%
Floating18.7%
Inflation protected
48.5%
Fund quotes0.2%
Other4.3%
Pre-fixed25.0%
Floating18.6%
Inflation protected
51.2%
Fund quotes0.2%
Other5.0%
BB Seguridade Participações S.A. | Investor Relations 25
BB MAPFRE SH1
BREAKDOWN OF PREMIUMS WRITTEN AND RETAINED PREMIUMS (%)
PREMIUMS WRITTEN (R$ MM)
UNDERWRITING RESULT
WRITTEN RETAINED
NET INVESTMENT INCOME (R$ MM)
4,3515,703
6,904 7,007 6,626
320
542
528 594 753
4,671
6,244
7,432 7,601 7,379
2012 2013 2014 2015 2016
Retained premiums Premiums ceded
CAGR 2012-2016 12%
39.4 47.0 42.652.2
27.7 14.8 30.0 16.4
27.2 32.021.4 24.8
3.4 3.2 3.7 3.6
2.2 2.9 2.2 3.0
2015 2016 2015 2016
Life Credit Life Rural DPVAT Mortgage Life
721
1,070
1,559
1,8822,022
78.6%75.0% 72.5%
69.0% 70.2%
2012 2013 2014 2015 2016
Underwriting result (R$ MM) Combined ratio
CAGR 2012-2016 29%
309 307
444
679 679
2012 2013 2014 2015 2016
CAGR 2012-2016 22%
BB Seguridade Participações S.A. | Investor Relations 26
BB MAPFRE SH1 – Performance Ratios ¹
COMBINED RATIO (%) G&A RATIO (%)
LOSS RATIO (%) COMMISSION RATIO (%)
1. Adjusted ratios considering the reinsurance effects.
36.633.6
31.1 29.5 31.9
2012 2013 2014 2015 2016
25.4 27.3 26.327.0 27.2
2012 2013 2014 2015 2016
16.8
14.215.3
12.711.4
2012 2013 2014 2015 2016
78.675.0 72.5
69.0 70.272.0 70.0 67.262.1 63.9
2012 2013 2014 2015 2016
Combined ratio Expanded combined ratio
BB Seguridade Participações S.A. | Investor Relations 27
Pre-fixed9.9%
Floating44.2%
Inflation protected
30.7%
Others¹15.2%Pre-fixed
10.2%
Floating29.1%
Inflation protected
46.1%
Others¹14.6%
PROFITABILITY NET INCOME BREAKDOWN (%)
SOLVENCY
1. Agrarian debt bonds, DPVAT, Investment funds
ASSET ALLOCATION
DEC/15 DEC/16
BB MAPFRE SH1
1. Net of taxes considering the Company’s effective tax rate.
68.076.9 77.3 72.9 74.4
32.023.1 22.7 27.1 25.6
2012 2013 2014 2015 2016
Non-interest operating result.¹ Net investment income¹
647
907
1,297
1,632 1,663
20.0%29.6%
41.4% 46.5% 44.2%
2012 2013 2014 2015 2016
Adjusted net income (R$ MM) ROAE
CAGR 2012-2016 27%
5 6
9
10 10
4
5
78 8
159.1%128.9% 126.0%
113.3%139.9%
Dec/12 Dec/13 Dec/14 Dec/15 Dec/16Investments + Receivables (R$ BN) Technical reserve (R$ BN) Solvency ratio
BB Seguridade Participações S.A. | Investor Relations 28
MAPFRE BB SH2
BREAKDOWN OF PREMIUMS WRITTEN AND RETAINED PREMIUMS (%)
PREMIUMS WRITTEN (R$ MM)
NET INVESTMENT INCOME (R$ MM) UNDERWRITTING RESULT
RETAINED WRITTEN
5,8066,909 7,648 7,680 7,008
843
885
1,198 1,4141,4176,649
7,794
8,846 9,0948,424
2012 2013 2014 2015 2016
Retained premiums Premiums ceded
CAGR 2012-2016 6%
54.6 48.364.7 58.1
36.139.9
24.427.7
3.6 3.9 4.2 4.6
5.6 7.9 6.7 9.5
2015 2016 2015 2016
Vehicles Casualties DPVAT Other
82130
10345
-197
98.4% 98.0% 98.6% 99.4% 102.7%
2012 2013 2014 2015 2016
Underwriting result (R$ MM) Combined ratio (%)
338
216
387
684
611
2012 2013 2014 2015 2016
CAGR 2012-2016 16%
BB Seguridade Participações S.A. | Investor Relations 29
MAPFRE BB SH2 – Performance Ratios¹
LOSS RATIO (%) COMMISSION RATIO (%)
G&A RATIO (%) COMBINED RATIO (%)
1. Adjusted ratios considering the reinsurance effects.
56.6 54.4 57.4 57.2 61.0
2012 2013 2014 2015 2016
26.124.1
23.0 23.1 23.2
2012 2013 2014 2015 2016
19.3 19.518.3
19.3 18.7
2012 2013 2014 2015 2016
98.4 98.0 98.6 99.4 102.792.8 94.9 93.5 91.2 94.8
2012 2013 2014 2015 2016
Combined ratio Expanded combined ratio
BB Seguridade Participações S.A. | Investor Relations 30
Pre-fixed20.3%
Floating26.5%
Inflation protected
38.9%
Others¹14.3%
PROFITABILITY NET INCOME BREAKDOWN (%)
SOLVENCY
1. Agrarian debt bonds, DPVAT, Investment funds
ASSET ALLOCATION
DEC/15 DEC/16
MAPFRE BB SH2
1. Net of taxes considering the Company’s effective tax rate.
96.7 76.5 90.7 105.3
162.2
3.323.5
9.3
-5.3-62.2
2012 2013 2014 2015 2016
Net investment income¹ Non interest operating result¹
228199
275
416
250
9.7% 7.5% 9.2% 12.8% 7.0%
2012 2013 2014 2015 2015
Adjusted net income (R$ MM) ROAE
CAGR 2012-2016 2%
6 6
89
8
56
78
7
127.5% 130.8% 139.0% 143.1%
183.4%
2012 2013 2014 2015 Dec/16Investments + Receivables (R$ BN) Technical reserve (R$ BN) Solvency ratio
Pre-fixed16.0%
Floating36.1%
Inflation protected
30.7%
Others¹17.2%
BB Seguridade Participações S.A. | Investor Relations 31
Brasilprev
CONTRIBUTIONS (R$ BN) NET INFLOWS
MANAGEMENT FEE RESERVES (R$ BN)
Source: Quantum Axis
1. Defined remuneration plan
1621
2834
44
33
2
2
2
0.30.4
0.5
0.5
0.5
1823
3137
47
2012 2013 2014 2015 2016VGBL PGBL Traditional
CAGR 2012-2016 27%
13 14
2123
29
8.7%11.2% 9.4% 9.3% 8.8%
2012 2013 2014 2015 2016
Net inflows (R$ BN) Redemptions ratio
CAGR 2012-2016 22%
8381,031
1,236
1,555
1,957
1.38% 1.32% 1.28% 1.21% 1.15%
2012 2013 2014 2015 2016
Management fee (R$ MM) Management fee
CAGR 2012-2016 24%
4155
80113
157
1920
23
27
31
78
8
9
9
6784
112
148
198
2012 2013 2014 2015 2016
VGBL PGBL Traditional¹
CAGR 2012-2016 31%
BB Seguridade Participações S.A. | Investor Relations 32
Pre-fixed2.2%
Floating4.5%
Inflation protected93.3%
Brasilprev
ASSET ALLOCATION BY INDEX (EXCEPT P/VGBL)
1. Securities = time deposits, time deposit with special guarantee, real state receivables certificate, creditory rights, letras hipotecárias and letras financeiras
DEC/15 DEC/16 DEC/15 DEC/16
R$ 149.7 BN
ASSET ALLOCATION
R$ 199.2 BN R$ 10.9 BN R$ 11.9 BN
RESULT WITH PENSION PLANS AND INSURANCE PROFITABILITY
445
646750
932
1,202
60.7% 52.8% 52.2% 51.7% 49.2%
2012 2013 2014 2015 2016Result with pension plans and insurance (R$ MM)
Cost-to-income ratio
CAGR 2012-2016 28%
477592
729
861
1,009
47.1% 46.3% 42.6% 39.2% 41.8%
2012 2013 2014 2015 2016
Adjusted net income (R$ MM) ROAE
CAGR 2012-2016 21%
Government bonds83.0%
Securities¹12.8%
Debentures and commercial
papers3.4%
Stocks0.8%
Government bonds89.4%
Securities¹7.8%
Debentures and commercial
papers2.2%
Stocks0.6% Pre-fixed
2.9%
Floating5.4%
Inflation protected91.7%
BB Seguridade Participações S.A. | Investor Relations 33
Brasilcap
PREMIUM BONDS COLLECTION (R$ MM)
NET INVESTMENT INCOME (R$ MM)
RESULT WITH PREMIUM BONDS
PROFITABILITY
1,951
4,403 4,058 3,9313,132
1,920
1,867 2,629 2,5862,5183,871
6,2706,687 6,517
5,649
2012 2013 2014 2015 2016
Unique payment Montlhy payment
CAGR 2012-2016 10%
99
166
209
178
129
15.4% 17.3% 18.2% 15.7% 13.8%
2012 2013 2014 2015 2016Result with premium bonds (R$ MM)
Premium bonds margin
CAGR 2012-2016 7%
183
59
325
454
645
2012 2013 2014 2015 2016
CAGR 2012-2016 37%
168132
324
379
439
88.6%57.1%
92.2% 87.0% 98.4%
2012 2013 2014 2015 2016
Adjusted net income (R$ MM) ROAE
CAGR 2012-2016 27%
BB Seguridade Participações S.A. | Investor Relations 34
TECHNICAL RESERVES (R$ MM) SOLVENCY RATIO (%)
ASSET ALLOCATION¹ ASSET ALLOCATION | TRADING PORTFOLIO
DEC/15 DEC/16 DEC/15 DEC/16
Brasilcap
1. Do not includes BB Capitalização
6,459
9,489
11,752 12,354
10,763
2012 2013 2014 2015 2016
CAGR 2012-2016 14%
109.3
134.7
153.2165.0 167.2
2012 2013 2014 2015 2016
Government bonds75.5%
Time deposits and others
15.7%
Debentures and commercial
papers4.4%
Stocks0.5%
Repo + Cash3.9%
Government bonds75.3%
Time deposits and others
14.0%
Debentures and commercial
papers5.2%
Stocks0.7%
Repo + Cash4.9%
Pre-fixed62.9%
Floating34.1%
Inflation protected
2.2%
Stock Funds0.7%
Pre-fixed58.2%
Floating16.9%
Inflation protected
23.9%
Stock Funds1.0%
BB Seguridade Participações S.A. | Investor Relations 35
SH157.8%
SH211.0%
Brasilprev20.9%
Brasilcap10.1%
Other0.2%
BB Corretora
BROKERAGE INCOME (R$ MM)
ADJUSTED NET INCOME (R$ MM)
BREAKDOWN OF BROKERAGE INCOME
EXPENSES BREAKDOWN & NET MARGIN (%)
2015 2016
1,359
1,766
2,308
2,5592,764
2012 2013 2014 2015 2016
CAGR 2012-2016 19%
SH155.4%
SH212.7%
Brasilprev17.6%
Brasilcap14.0%
Other0.3%
22.5 17.6 12.3 9.4 8.3
5.57.2
7.47.4 11.3
25.2 26.728.8 30.0 29.4
53.2 51.548.5 46.8 49.0
48.7 51.755.9 58.9 58.2
2012 2013 2014 2015 2016
Operating expenses Tax expenses Income taxes Net margin
661
913
1,289
1,5081,610
2012 2013 2014 2015 2016
CAGR 2012-2016 25%
BB Seguridade Participações S.A. | Investor Relations 36
Guidance 2017
Ratio 2017
Estimates
BB Seguridade - Adjusted net income growth (%) 1 - 5
BB Seguridade Participações S.A. | Investor Relations 38
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 for 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 person 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 paid off and the client’s relatives will not inherit the debt.
BB Seguridade Participações S.A. | Investor Relations 39
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 40
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 client’s taxable income
PGBL
Focus on inheritance planning It has the advantage of not joining the inventory Lower inheritance costs (does not have legal costs neither lawyer fees) Less time consuming (beneficiary receives the benefit in less than 30 days)
VGBL
BB Seguridade Participações S.A. | Investor Relations 41
Our Products - Brasilcap
Premium Bonds
Premium bonds products are an alternative way to accumulate reserves, 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 42
BB Seguridade – IR
Investor Relations Contacts
Rua Alexandre Dumas, 1671 Térreo – Ala B
São Paulo – SP – Brasil 04717-903
Telephone: +55 11 4297- 0730
www.bancodobrasilseguridade.com.br ri@bbseg.com.br