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

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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


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


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%


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 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



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

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


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


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


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


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

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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


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


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

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Can

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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


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


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 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


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


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.


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


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%


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.


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%


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%


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


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%


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.


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%


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%


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


83.5 87.897.0

103.4111.9


Government Bonds75.1%

Securities²14.9%

Debentures and commercial

papers7.7%

Stocks2.3%


Securities²13.9%


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


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


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


134.7

115.3

140.1

117.4

153.2


9,489 9,810 10,359 10,99511,752


Pre-Fixed53.0%

Floating42.9%

Inflation protected

3.2%

Stock Funds0.9%

Pre-Fixed43.7%

Floating49.6%

Inflation protected

5.5%

Stock Funds1.3%


Securities¹5.6%


papers8.6%

Others8.1%


Securities¹15.1%


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.


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


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 - 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


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


Appendix


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.


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.


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]

mailto:[email protected]

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