Apresentação Institucional Inglês v4 - BB · Market Leadership 24.9% 20.1% 29.1% 15.4% 33.1%...

Institutional Presentation

1Q13

Largest Insurance Broker in Latin America

Leading Presence in Other Segments, such as Premium Bonds, Property and Rural Insurance

Insurance Operations, Pension Plans and Premium Bonds Managed Through Private Partnerships withGlobal Leaders

Largest Life Insurance Company in Brazil

2nd Largest P&C Insurance Company in Brazil

Fast Growing with High Profitability

Largest Insurance, Pension and Premium Bonds Company in Latin America

BB Seguridade

Successful Track Record

* Strategic moves announced after the release of first quarter results. Pending approval by regulators, supervisors and inspectors.

1981

Creation of

BB’s

insurance

operations

1992

Creation of

Brasilprev

1995

Brasilcap’s

inception in

partnership

with

SulAmérica,

Icatu and

Aliança da

Bahia

1996

Creation of

Brasilveículos in

partnership with

SulAmérica

1999

Partnership

with Principal

Financial

Group in

Private

Pension Plans

2011

Established

Joint Venture

with Mapfre

2008-2011

Ownership

restructuring of

BB’s insurance,

Pension Plans and

Premium Bonds

division

2012

Creation of BB

Seguridade

1987

BB Corretora’s

establishment

2013*

IPO BB Seguridade

Equity investment in IRB –

Brasil RE

Brasildental

Partnership with

Odontoprev

CEOMarcelo Augusto Dutra Labuto

CEOMarcelo Augusto Dutra Labuto

Finance and Investor Relations Directorship

Leonardo Giuberti Mattedi

Finance and Investor Relations Directorship

Leonardo Giuberti Mattedi

CommercializationDirectorship

André Luis Cortes Mussili

CommercializationDirectorship

André Luis Cortes Mussili

Products & Communication Directorship

Ângela Beatriz de Assis

Products & Communication Directorship

Ângela Beatriz de Assis

Executive Officers

Board of DirectorsBoard of Directors

Shareholders General MeetingShareholders General Meeting

Fiscal CouncilFiscal Council

Audit CommiteeAudit Commitee

Organizational Structure

BB CorretoraBB CorretoraBrasilcapBrasilcap

100% Total

BB SegurosBB Seguros BB Corretora HoldingsBB Corretora Holdings

BB Mapfre SH1

BB Mapfre SH1

Mapfre BB SH2Mapfre BB SH2

BrasilprevBrasilprev

Free-Float

74,9%BB Seguridade Stake in

Terms of Total Shares (%)

49,9%

50%

100% Total

50,0%

49,0%

50%

74,9%

49,9%

50%

66,7%

49,9%

67%

100%

100%

100%

BB Seguridade Stake in

Terms of Voting Shares (%)

Board of Directors

Representation (%)

66,25%33,75%

Shareholders Structure

IRB –Brasil Re 1

IRB –Brasil Re 1

Brasil dentalBrasil dental

20,5%

20,5%

20%

74,9%

49,9%

50%

Strategic moves announced after the release of first quarter results. Pending approval by regulators, supervisors and inspectors.1 Participation in the amount of shares in IRB – Brasil Re after the Extraordinary Shareholders Meeting, expected to ago/2013.

Corporate Governance OverviewBoard of Directors

SH1Life

SH2P&C

BrasilprevPension

Plans

BrasilcapPremium

Bonds

18 members

9 appointments

9 appointments

Companhia de Seguros

Aliança do Brasil

6 appointments

6 appointments

Mapfre Vida S.A

6 appointments

6 appointments

Vida Seguradora S.A

6 appointments

6 appointments

18 members

9 appointments

9 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

Presidents, Vice Presidents and Directors

Broker

3 members

3 appointments

Source: BB Seguridade and Banco do Brasil

Market Leadership

24.9%

20.1%

29.1%

15.4%

33.1% 33.8%

28.2%35.6%

24.9% 31.2%

Market Share of BB Branch and BB Seguridade (%) – Positioning

Outstanding distribution capabilities...

BB’s Branches Market Share: 24.1%BB Seguridade Market Share: 23.4%BB’s Branches Market Share: 24.1%BB Seguridade Market Share: 23.4%

North

(5.3% of Brazil’s GDP)

Mid-West

(9.3% of Brazil’s GDP)South


Southeast


Northeast


Source: Company, Susep and IBGE1. Considering market share of Life, Casualty and Auto insurance premiums and total contributions from Pension Plans and Premium Bonds2. Brazil’s GDP as of 2011 according to IBGE

BB branch market share (Feb/13)

BB Seguridade’s overall market share¹ (04M13)

1º

2º

1º 1º

1º 1º

3º 1º

1º1º

Benefits from BB’s leadership in high growth insurance markets

Broker: exclusive access to BB network…supported by the largest banking network in Latin America with multiple relationship channels

5,394

18,165

138

60,220 20,000

59 mm clients

Branches

ATM

Banking Correspondents

External Brokers

Partnerships

Banking Channel Non-banking channel

28,380

Shared

Sound non-banking network spread all over Brazil

Source: Banco do Brasil

1º

4.290

Points of sale

� Enhanced transparency and certainty to minority shareholders

� BB Seguridade’s commitment to reaffirm its best corporate governance practices

� Creating a committee related parties, composed of at least one independent member, who must have a favorable vote for approval and signature changes in contracts with related parties

Related Parties’ Transaction Policy

Broker: exclusive access to BB network

� Exclusive access to Banco do Brasil’s network

� 20-year term

� No termination clause

� Signed in January 2013

� Access to BB Corretora

� Obligation to sell their products through BB Corretora’s banking network

� Remuneration: fixed percentage of policies, in operational contracts signed

product by product

� Relationship managed by shareholder agreements with 23-year term for

PFG, 20-year term for Mapfre and indefinite for Icatu / Aliança do Brasil

BrasilprevSH1 SH2 Brasilcap

Backed by BB and Private Partnerships

SH1 Life

BB Mapfre SH1

� Life comprehends life insurance, personal accidents and credit-life insurance

� Life insurance products in Brazil are different from other modalities abroad. It is a non-accumulative product, which means that if a person does not contribute

anymore, the coverage will be suspended

� Life insurers sell protection for events related to a person’s life, such as death protection (pay a fixed amount on the death of the policyholder), living benefit

products (income stream for retirement to the policyholder), personal accidents and savings-type products (insurance contracts that contain a trigger connected to

a person’s life)

� Credit-life insurance allows for the liquidation of a debt or of a number of debt installments in the event of natural or accidental death or, in some cases, depending

on the product, unemployment or income reduction

Life

� Housing insurance is related to mortgage loans. In the event of the death of the insured, the insurance allows his or her family to retain the real estate and the

financial institution to receive full payment of any debt owed on the property. A housing insurance policy can also protect contractors against damage to real estate

Mortgage

SH1 Life

BB Mapfre SH1

Life (Insurance Premium) (R$ mm)

BB Seguridade: +13,5%

Industry: +17,2%

1Q13

1,072.9

17.3%

1Q12

945.6

17.8%

Market Share

Premiums

1Q13

222.7

64.4%

1Q12

92.9

60.6%

Market Share

Premiums

Rural (Insurance Premium) (R$ mm)


Industry: +125,3%

1Q13

27.4

5.4%

1Q12

19.9

4.9%

Market Share

Premiums

Housing (Insurance Premium) (R$ mm)


Industry: +125,3%

� Rural insurance protects farmers against adverse natural events, up to a maximum limit. It also covers cattle, farmer’s equity, farm assets, credit to commercialize

production, and the risk of death of producers

Rural Insurance

SH2 P&C

Mapfre BB SH2

� The products of this segment are customized to insure individuals and companies against potential losses in their property assets – for example, to insure a

company’s machinery or facilities or an individual’s house against robbery or fire

� Property insurance protects an entity or a person with an interest in physical property against its loss or the loss of its income capabilities

� Casualty insurance protects an entity or a person against legal liability for losses attributable to injury to other people or damage to the property of others

Property

� Auto insurance is an insurance purchased for cars, trucks, motorcycles, and other road vehicles, which is primarily used to provide financial protection against

physical damage, bodily injury resulting from traffic collisions and against liability that could arise therefrom

Auto

Auto (Insurance Premium) (R$ mm)

1Q13

1,040.0

15.7%

1Q12

806.5

15.0%

Market Share

Premiums ∆ %

BB Seguridade: +29.0

Industry: +22.9

Brasilprev

� Complementary pension plans are an optional product giving individuals additional financial protection outside of public retirement plans

� The two most important products in this segment are PGBL (Plano Gerador de Benefício Livre) and VGBL (Vida Gerador de Benefício Livre), which are pension plans in

which individuals contribute during their working lives in return for receiving a monthly income or a single payment usually upon retirement

� PGBL products have a greater attractiveness to the middle class due to tax advantages (people who chooses the full statement of the income tax report can deduct the

contributions from the taxable income)

� VGBL products have a greater attractiveness to high-income customers due to their succession appeal. The succession process in Brazil is costly and time consuming.

However, beneficiaries receive the resources quickly after the death of the policyholder

Pension Plans

Pension Plans (Collection) (R$ mm)

1Q13

6,088.2

32.1%

1Q12

4,408.2

29.5%

Market Share

Collection ∆ %


Industry: +27.1

Brasilcap

� Premium bonds provide people with a way of saving money while also giving them the opportunity to profit from lottery premiums, in which randomly-chosen savers

are awarded prize money. A below-savings-account yield in capitalization plans allows people to participate in the lotteries

� There are similar products in Spain and United Kingdom

� There are 4 different kinds of premium bonds in Brazil: traditional (the objective is to refund the contributors at the end of the term if the contributor has made timely

and accurate contributions), programmed purchase (intended to facilitate the acquisition of a product or service at the end of the period, enabling the contributor to

choose between the purchase or withdrawal of their savings), popular (enables the contributor to participate in the lottery, but there is no refund of the amount

contributed) and incentive (a plan linked to a promotional event or a prize contingent on a behavioral or commercial event, without the refund of the entire amount

paid)

Premium Bonds

Premium Bonds (Collection) (R$ mm)

1Q13

1,093.5

24.6%

1Q12

863.7

23.0%

Market Share

Collection ∆ %


Industry: +18.1

Commercialization of BB Seguridade’s products in BB’s retail banking base

BB’s client

Gross premium

Reimbursementof costs / expenses

Banking service fees

BB Corretora

Brokerage

Commercialization process

Brasilprev

Brasilcap

SH1

SH2

BB Corretora

� The brokerage businesses consist in intermediating the sale of insurance products between the insurance company and clients

� Due to the intermediation services, the broker receives a commission, which is calculated as a % of the value of the premium

� There are no direct underwriting risks involved

Brokerage

Highlights

Net Revenues (1Q13)5

(R$ mm)

Net Revenues (1Q13)5

(R$ mm)

% of BB Seguridade

adjusted net income 10

% of BB Seguridade

adjusted net income 10

Adjusted ROAE6

(1Q13)

Adjusted ROAE6

(1Q13)

RankingRanking

Adjusted net income

(1Q13) 7 (R$ mm)

Adjusted net income

(1Q13) 7 (R$ mm)

Business LinesBusiness LinesSH1 Life1

SH2P&C2 Pension Plans Premium Bonds Brokerage

53.7% 63.4%28.4% 4.4% 4,460.3%

6,083 1,0931,112 1,647 388

95.7 16.9133.1 12.3 193.6

1st1st

34.7%

454.9 6 8

1st1st3

1st9

Insurance, Pension Plans and Premium Bonds Distribution Holding

21.0% 3.7%29.3% 2.7% 42.5%

Source: Company fillings and Susep

1. SH1 comprises Life, Housing and Rural Insurance / 2. SH2 comprises Auto, Casualty and Others (except for Housing and Rural Insurance) / 3. 1ST position: Represents BB Seguridade’s Life products / 4. 2nd position: Represents BB Seguridade’s P&C products / 5. Premiums written for BB Mapfre SH1 and Mapfre BB SH2; Collections for Brasilcap; Contributions for Brasilprev; Operational revenues for BB Corretora / 6. Considers adjustments for extraordinary items / 7. Considers the net income attributable to BB Seguridade / 8. BB Seguridade’s net income includes R$ 3.3mm related to holding revenues/expenses and taxes, which are not shownabove / 9. 1ST position: Represents BB Seguridade’s collections products / 10. Considers the results of holdings BB Seguridade, BB Seguros and BB Cor.

nd

Earnings by Segment

BB Mapfre SH1 (R$ mm) Mapfre BB SH2 (R$ mm)

Brasilprev (R$ mm) Brasilcap (R$ mm)

Income from insurance, pension plans and premium bonds grows in all affiliates. Financial result impacted by mark-to-market.

1Q13

55.0

218.7

177.5

1Q12

81.0127.6

149.4

Adjusted net income

Net investment income

Underwriting result

Result with pension plans: +9.1%

Net investment income: -12.4%

Adjusted net income: +0.3%

Result with premium bond: +71.8%


Adjusted net income: -47.9%

Underwriting result: +31.8%


Adjusted net income: -64.9%

Underwriting result: +71.4%



1Q13

19.121.5

24.6

1Q12

89.4

16.3

70.1

Adjusted net income


Underwriting result

1Q13

77.9

134.7

127.7

1Q12

89.0123.5

127.3

Adjusted net income


Result with pension plan

-21.5

1Q13

63.7

25.4

1Q12

42.337.1

48.8


Result with premium bond

Adjusted net income

Earnings by Segment

BB Seguridade Adjusted (R$ mm)

Adjusted net income 5% higher even in an adverse environment for financial income.


BB Seguridade (R$ mm)

Net income: +53.5%

1Q13

454.9

34.7

1Q12

431.9

37.8

ROAE (%)

Adjusted net income

1Q13

472.0

36.2

1Q12

307.4

26.0

ROAE (%)

Net income

BB Mapfre SH1 – Highlights

20.7%

1Q13

961.4

1Q12

796.3

Earned premiums (R$ mm) Claims (%)

-6.7 p.p.

1Q13

77.3

1Q12

84.0

Combined ratio (%) Adjusted ROAE (%)

1Q13

28.4

1Q12

21.5

-8.0 p.p.

1Q13

35.1

1Q12

43.1

Adjusted ROAE grew fueled by growth in earned premiums and reduction in claims.

BB Mapfre SH1 – Highlights

Premiums written (R$ mm) Breakdown of premiums 1Q12 vs 1Q13

Selling channels 1Q13

+19.0%

1Q13

1,112.2

1Q12

934.3

80.0%

Others Channels

20.0%

Banking Channel

* Based on SUSEP GAAP

Banking channel sustains the growth of premiums written, in line with the business plan ofthe company.


Others Channels

24.4%

Banking Channel

75.6%

2.4%

5.7%

76.2%

Housing

Life

15.7%

Rural

DPVATHousing

Rural 7.0%

7.9% 2.2%

DPVAT

Life

82.9%

1Q12 1Q13

x

Mapfre BB SH2 – Highlights

Premiums earned (R$ mm) Claims (%)

Combined ratio (%) Adjusted ROAE (%)

+12.2%

1Q13

1,531.2

1Q12

1,364.7

-0.2 p.p.

1Q13

98.6

1Q12

98.8

1Q13

4.4

1Q12

13.2

-3.0 p.p.

1Q13

54.8

1Q12

57.8

ROAE impacted by the financial result, but the growth in premiums earned and drop lowerloss ratio show favorable operating performance.

Mapfre BB SH2 – Highlights

Premiums written (R$ mm) Breakdown of premiums 1Q12 vs 1Q13

+22.9%

1Q13

1,646.7

1Q12

1,340.4

Others Channels

65.6%

Banking Channel

34.4%


Performance in auto insurance sustains the growth in premiums written, with the banking channel showing the highest growth.


Others Channels

69.5%

Banking Channel

30.5%

DPVAT

4.9%

Casualties

Auto8.2%

Affinity

30.3% 56.7%

DPVATAffinity

34.3%

9.8%

51.4%

Auto4.5%

Casualties

1Q12 1Q13

x

* Based on SUSEP GAAP

Brasilprev – Highlights

Gross revenue from pension plans (R$ mm) Adjusted ROAE (%)

Net Inflow of Contributions (R$ mm) Technical Reserves (R$ bn)

+38.5%

1Q13

6,083.4

1Q12

4,390.9

1Q13

53.7

1Q12

68.0

+34.0%

Mar/13

71.9

Mar/12

53.7

Brasilprev reaches 43% of net total net inflow in the market, which has been supportingthe growth of reserves.

1Q13

4,555.9

43.5%

1Q12

3,410.6

41.2%

Market Share

Net Inflow of Contributions

* Based on SUSEP GAAP. Net Inflow of Contributions = Collection - Redemptions

Brasilcap – Highlights

Premium Bonds Collection (R$ mm) Adjusted ROAE (%)

Net Inflow of Contributions (R$ mm) Technical Reserves (R$ bn)

863.7

+26.6%

1Q13

1,093.5

1Q12 1Q13

63.4

1Q12

167.2

5.3

+29.9%

Mar/13

6.8

Mar/12

Growth in revenue and net inflow, with increased market share in reserves and collections.

241.1

19.5%

1Q13

465.2

29.1%

1Q12

Market Share

Net Inflow of Contributions

* Based on SUSEP GAAP. Net Inflow of Contributions = Collection - Redemptions

BB Corretora – Highlights

Brokerage Revenues (R$ mm) Revenues Breakdown 1Q12 vs 1T13

Adjusted Net Income (R$ mm) Performance (R$ mm)

+21.2%

1Q13

387.6

1Q12

319.8

+22.9%

1Q13

193.6

1Q12

157.5

Benefits from the predominance of sales through the banking channel, increase of commission income and net margin.

SH2

18.1%Brasilprev

Brasilcap

19.7%

1.3%

11.8%

49.1%

Other

SH1

Brasilcap

Brasilprev

SH1

Other

16.8% 46.2%

21.1%

14.4%

1.5%

SH2

1Q12 1Q13

x

1Q12 1Q13

Brokerage Revenues 319.8 387.6

Operating Result 231.8 284.3

Adjusted Net Income 157.5 193.6

Net Margin 49.3% 49.9%

Apresentação Institucional

Março 2013

Contacts:Investor Relations

SBS – Quadra 1 – Bloco A –

Ed. Sede I – 4º andar

70.073-900 – Brasília, DF

Tel: +55 (61) 3102-5771

www.bancodobrasilseguridade.com.br

[email protected]

Apresentação Institucional Inglês v4 - BB · Market Leadership 24.9% 20.1% 29.1% 15.4% 33.1%...

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Transcript of Apresentação Institucional Inglês v4 - BB · Market Leadership 24.9% 20.1% 29.1% 15.4% 33.1%...