Public Meeting 2015 - Banco do Brasil · Foto por Lula Marques Rafael Sperendio Head of IR Foto por...

Public Meeting 2015

BBSEY

ADR - Level I

BBSEY

ADR - Level I

BB Seguridade Participações S.A. | Investor Relations 2

Werner Süffert CFO

Ângela Assis CMO

Antonio Rugero CRO

Marcelo Labuto CEO

Foto por Lula Marques

Rafael Sperendio Head of IR

Foto por Lula Marques

BB Seguridade Representatives


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

http://www.google.com.br/imgres?imgurl=http://www.sindseg-rj.org.br/images/logos/alba.gif&imgrefurl=http://www.sindseg-rj.org.br/seguradoras.html&usg=__KShNk9BKbBPi7czKXB1AW1GxoYY=&h=88&w=88&sz=6&hl=pt-BR&start=10&zoom=1&tbnid=gBbZduYXJaub3M:&tbnh=77&tbnw=77&ei=3Fa7UNjONYvr0QGswIHICg&prev=/search?q=companhia+de+seguros+alian%C3%A7a+da+bahia&um=1&hl=pt-BR&sa=N&rls=com.microsoft:*&tbm=isch&um=1&itbs=1


BB Corretora

Brokerage

Brasilcap

Premium Bonds

100%

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%

50.0%

100%

50.0%

49.0%

50.0%

74.9%

49.9%

50.0%

66.7%

49.9%

66.7%

100.0%

100.0% 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%

20.0%

74.9%

49.9%

50.0%

Ownership Structure

BB Seguridade

50.0% 50.0% 50.0% 100.0% Board of Executives Officers Representation (%) - 50.0%¹ 100.0%

1. One of the members is elected by consensus.


ESTRUTURA ORGANIZACIONAL BB SEGURIDADE

CEO Marcelo Augusto Dutra Labuto

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


Shareholders Structure

TOTAL CAPITAL BREAKDOWN – SEP/2015

FREE-FLOAT BREAKDOWN – SEP/2015

Foreign Investors

75.7%

Institutional 19.5%

Individuals4.8%

Banco do Brasil66.3%

Free-float33.8%


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

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:


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


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

140 Partnerships (Affinity)

20,112 External Brokers

62.4 Million clients

5,424 Branches

65,631 ATMs

14,399 Banking correspondents

35,066 Points of service in shared network

1º

Captive access to larger distribution network in Latin America

Performance


Largest Insurance Broker in Latin America

Exclusive 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$ 138.1 billion in September 2015

Insurance Operations, Pension Plans and Premium Bonds managed through private partnerships with global leaders

Fast Growing with High Profitability

Net income grew by 26.5% YoY achieving an annualized ROAE¹ of 58.4% in 9M15

BB Seguridade at a Glance

156 employees at the holding and broker level, and

7,065 employees at the affiliates level.

1. ROAE, considering the total distribution of dividends.

One of the Largest Insurance, Pension and Premium Bonds Companies in Latin America

R$ 12.4 billion in premiums written, R$ 27.1 billion in pension contributions and R$ 4.7 billion in premium bonds in 9M15

2nd Largest P&C Insurance Company in Brazil

2.9 million insured vehicles and R$ 6.9 billion in premiums written in 9M15


Market Share - 9M15

Segments Market Size

(R$ MM) BBSE (%)

Main Competitors

Insurance premiums written

Life 15,897 14.7%

# 1

19.4%

# 3

14.3%

Credit life 6,048 27.9%

# 2

14.8%

# 3

13.0%

Rural 2,436 73,2%

# 2

6.2%

# 3

6.0%

Auto 24,803 15.1%

# 1

26.6%

# 3

12.1%

Pension plans

Contributions 69,602 39.1%

# 2

26.9%

# 3

18.2%

P/VGBL Reserves 453,276 28.5%

# 2

26.5%

# 3

24.5%

Premium bonds

Collection 15,682 29.7%

# 2

26.4%

# 3

12.9%

Reserves 30,796 39.5%

# 2

22.7%

# 3

10.0%

# 1

Source: Susep

# 2

# 2

# 1

# 1

# 1

# 1

# 1


1,754

2,260

3,223

2,316

2,931

32.4% 38.4% 49.8% 51.3% 58.4%

2012 2013 2014 9M14 9M15

Adjusted net income (R$ MM) ROAE

SH131.1%

SH25.0%

Brasilprev16.5%

Brasilcap6.1%

IRB 3.8%

BB Corretora37.4%

SH129.9%

SH24.4%

Brasilprev17.0%

Brasilcap6.5%

IRB 2.9%

BB Corretora39.4%

SH112.5%

SH215.6%

Brasilprev61.4%

Brasilcap10.6%

33,322

43,349

53,996

38,12444,102

21.4% 24.5% 27.0% 26.7% 27.7%

2012 2013 2014 9M14 9M15

Revenues (R$ MM) Market share

SH113.8%

SH217.4%

Brasilprev56.6%

Brasilcap12.2%

9M15

BB Seguridade Performance

PREMIUMS, CONTRIBUTIONS AND COLLECTIONS1 BREAKDOWN OF PREMIUMS, CONTRIBUTIONS AND COLLECTIONS¹

PROFITABILITY EARNINGS BREAKDOWN¹

9M14 9M15

1. Premiums written, pension plans contributions and premium bonds collections

9M14

+ 16% CAGR 2012-2014 27%

CAGR 2012-2014 36%

+ 27%

1. It does not consider Brasildental result neither the Holding’s revenues and expenses.

1. Premiums written, pension plans contributions and premium bonds collections


155 157221 161

235

110 79

12791

151162

150

210

150

1837524

133

97

124

17

77

43

98

5161

93

58

77

553488

861

600

868

31.5%21.6% 26.7% 25.9% 29.6%

2012 2013 2014 9M14 9M15

SH1 SH2 BrasilprevBrasilcap IRB Others¹% Net Income

Pre-fixed28.5%

Floating20.6%

Inflation protected

48.5%

Fund quotes0.2%

Other2.3%

Pre-fixed26.8%

Floating26.8%

Inflation protected

43.3%

Fund quotes0.3%

Other2.8%

8.53 8.19

10.86

13.13

2012 2013 2014 Sep/15

14.6

15.6 15.8 15.8 15.7

13.0 12.9 12.8

12.612.4

8.28.4 8.6 8.8 9.0

11.6

12.312.7

12.9 13.0

DI1F16 DI1F17 DI1F18 DI1F19 DI1F20

Net Investment Income

FORWARD YIELD CURVE (%) AVERAGE SELIC RATE (%)

ASSET ALLOCATION

Source: Focus - Bacen do Brasil Source: ValorPro

1. BB Corretora + Holdings

Sep/15

Dec/13

Dec/14

Dec/12

+ 45% CAGR 2012-2014

25%

NET INVESTMENT INCOME (R$ MM)

SEP/14 SEP/15


40.2 40.4 44.0 43.7

26.3 26.328.9 28.6

26.9 26.6 20.2 20.7

4.1 4.0 4.5 4.42.5 2.6 2.3 2.6

9M14 9M15 9M14 9M15

Life Credit Life Rural Other Mortgage Life

309 307

444

323

482

2012 2013 2014 9M14 9M15

4,3515,703

6,904

4,778 5,073

320

542

528

479 4304,671

6,244

7,432

5,257 5,503

2012 2013 2014 9M14 9M15

Retained premiums Premiums ceded

721

1,070

1,559

1,109

1,455

80.9%75.0% 72.5% 73.5%

68.1%

2012 2013 2014 9M14 9M15

Underwriting result (R$ MM) Combined ratio

BB Mapfre SH1

BREAKDOWN OF PREMIUMS WRITTEN AND RETAINED PREMIUMS (%)

PREMIUMS WRITTEN (R$ MM)

UNDERWRITING RESULT

CAGR 2012-2014 26%

CAGR 2012-2014 47%

WRITTEN RETAINED


CAGR 2012-2014 20%

+ 31%

+ 5%

+ 49%


80.975.0 72.5 73.5

68.174.0

70.0 67.2 68.261.6

2012 2013 2014 9M14 9M15

Combined ratio Expanded combined ratio

16.8

14.215.3

13.812.0

2012 2013 2014 9M14 9M15

27.7 27.3 26.3 26.4 26.6

2012 2013 2014 9M14 9M15

36.633.6

31.133.4

29.8

2012 2013 2014 9M14 9M15

BB Mapfre SH1 – Performance Ratios ¹

COMBINED RATIO (%) G&A RATIO (%)

LOSS RATIO (%) COMMISSION RATIO (%)

1. Adjusted ratios considering the reinsurance effects.

-1.8 p.p.

-3.6 p.p. +0.2 p.p.


68.076.9 77.3 76.8 74.5

32.023.1 22.7 23.2 25.5

2012 2013 2014 9M14 9M15

Non-interest operating result.¹ Net investment income¹

Pre-fixed11.2%

Floating34.8%

Inflation protected

49.0%

Others¹5.0%

Pre-fixed17.0%

Floating44.4%

Inflation protected

31.7%

Others¹6.9%

647

907

1,297

930

1,231

20.0%

29.6%

41.4% 42.1%

52.6%

2012 2013 2014 9M14 9M15


PROFITABILITY NET INCOME BREAKDOWN (%)

SOLVENCY

1. Agrarian debt bonds, DPVAT, Investment funds

ASSET ALLOCATION

SEP/14 SEP/15

+32%

BB Mapfre SH1

5 6

9 9

4

5

78

159.1%128.9% 126.0% 131.7%

2012 2013 2014 Sep/15Investments + Receivables (R$ BN) Technical reserve (R$ BN) Solvency ratio

CAGR 2012-2014 42%

1. Net of taxes considering the Company’s effective tax rate.


54.0 54.663.2 64.7

33.8 36.1 22.6 24.3

4.2 4.04.9 4.8

8.0 5.3 9.3 6.2

9M14 9M15 9M14 9M15

Vehicles Casualties DPVAT Other

82

130

10384

51

100.5% 98.0% 98.6% 98.4% 99.1%

2012 2013 2014 9M14 9M15

Underwriting result (R$ MM) Combined ratio

338

216

387

287

478

2012 2013 2014 9M14 9M15

5,8066,909

7,648

5,679 5,790

843

8851,198

964 1,077

6,649

7,794

8,846

6,643 6,867

2012 2013 2014 9M14 9M15

Retained premiums Premiums ceded

Mapfre BB SH2

BREAKDOWN OF PREMIUMS WRITTEN AND RETAINED PREMIUMS (%)

PREMIUMS WRITTEN (R$ MM)


CAGR 2012-2014 15%

CAGR 2012-2014 7%

UNDERWRITTING RESULT

+ 3%

- 39%

+67%

CAGR 2012-2014 12%

RETAINED WRITTEN


100.5 98.0 98.6 98.4 99.194.8 94.9 93.5 93.4 91.4

2012 2013 2014 9M14 9M15

Combined ratio Expanded combined ratio

19.3 19.518.3 18.5

19.9

2012 2013 2014 9M14 9M15

28.324.1 23.0 22.7 21.7

2012 2013 2014 9M14 9M15

56.6 54.4 57.4 57.3 57.9

2012 2013 2014 9M14 9M15

Mapfre BB SH2 – Performance Ratios¹

LOSS RATIO (%) COMMISSION RATIO (%)

G&A RATIO (%) COMBINED RATIO (%)

+0.6 p.p. -1.0 p.p.

+1.4 p.p.

1. Adjusted ratios considering the reinsurance effects.


Pre-fixed20.0%

Floating44.6%

Inflation protected

18.5%

Others¹16.8%

Pre-fixed19.3%

Floating28.7%

Inflation protected

37.8%

Others¹14.2%

96.776.5

90.7 87.5101.8

3.323.5

9.3 12.5

-1.82012 2013 2014 9M14 9M15

Net investment income¹ Non interest operating result¹

228199

275

203

298

9.7% 7.5% 9.2% 9.3%12.4%

2012 2013 2014 9M14 9M15


PROFITABILITY NET INCOME BREAKDOWN (%)

SOLVENCY

1. Agrarian debt bonds, DPVAT, Investment funds

ASSET ALLOCATION

SEP/14 SEP/15

+ 46%

Mapfre BB SH2

6 6

89

56

78

127.5% 130.8% 139.0% 145.4%

2012 2013 2014 Sep/15

Investments + Receivables (R$ BN) Technical reserve (R$ BN) Solvency ratio

CAGR 2012-2014 10%

1. Net of taxes considering the Company’s effective tax rate.


13 14

21

1417

8.7%11.2% 9.4% 9.5% 9.2%

2012 2013 2014 9M14 9M15

Net inflow (R$ BN) Redemptions ratio

4155

80 7310419

20

2322

26

78

88

8

6784

112103

138

2012 2013 2014 Sep/14 Sep/15

VGBL PGBL Traditional¹

1621

28

2025

3

3

2

2

2

0.3

0.4

0.5

0.4

0.4

18

23

31

22

27

2012 2013 2014 9M14 9M15

VGBL PGBL Traditional

Brasilprev

CONTRIBUTIONS (R$ BN) NET INFLOWS

MANAGEMENT FEE RESERVES (R$ BN)

CAGR 2012-2014 31%

+ 27%

+ 26%

+ 33%

CAGR 2012-2014 21%

CAGR 2012-2014 29%

Source: Quantum Axis

CAGR 2012-2014 25% + 23%

1. Defined remuneration plan

838

1,031

1,236

889

1,133

1.40% 1.36%1.26% 1.28%

1.22%

2012 2013 2014 9M14 9M15

Management fee (R$ MM) Management fee


445

646750

550

694

60.7%52.8% 52.2% 51.4% 50.8%

2012 2013 2014 9M14 9M15Result with pension plans and insurance (R$ MM)

Cost-to-income ratio

Pre-fixed6.8%

Floating5.4%

Inflation protected

87.8%

Pre-fixed2.2%

Floating6.0%

Inflation protected

91.8%

Government bonds83.1%

Securities¹12.1%

Debentures and commercial

papers3.9%

Stocks0.8%

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


Securities¹14.3%


papers6.6%

Stocks1.6% SEP/14 SEP/15 SEP/14 SEP/15

R$ 104.4 BN

ASSET ALLOCATION

R$ 139.6 BN R$ 9.9 BN R$ 10.6 BN

RESULT WITH PENSION PLANS AND INSURANCE PROFITABILITY

+ 26% + 24% CAGR 2012-2014

30% CAGR 2012-2014

24%

477592

729

528

652

47.1% 46.3% 42.6%50.1%

43.6%

2012 2013 2014 9M14 9M15



183

59

325

238

306

2012 2013 2014 9M14 9M15

Brasilcap

PREMIUM BONDS COLLECTION (R$ MM)


RESULT WITH PREMIUM BONDS

PROFITABILITY

1,951

4,403 4,0582,835 2,646

1,920

1,867 2,629

1,824 2,015

3,871

6,2706,687

4,659 4,661

2012 2013 2014 9M14 9M15

Unique payment Montlhy payment

99

166

209

137 144

15.4% 17.3% 18.2% 17.5% 17.5%

2012 2013 2014 9M14 9M15Result with premium bonds (R$ MM)

Premium bonds margin

168132

324

226270

88.6%57.1%

92.2%109.4%

101.6%

2012 2013 2014 9M14 9M15


CAGR 2012-2014 31%

CAGR 2012-2014 33%

+ 28%

+ 19%

+ 5% CAGR 2012-2014 45%

CAGR 2012-2014 39%



Time deposits and others

15.0%


papers6.3%

Stocks0.7%

Repo + Cash10.1%


Time deposits and others

15.1%


papers4.7%

Stocks0.6%

Repo + Cash4.2%

Pre-fixed65.6%

Floating31.4%

Inflation protected

2.2%Stock Funds

0.8%

6,459

9,489

11,75210,995

12,162

2012 2013 2014 Sep/14 Sep/15

Pre-fixed42.8% Floating

52.1%

Inflation protected

4.0%

Stock Funds1.1%

TECHNICAL RESERVES (R$ MM) SOLVENCY RATIO (%)

ASSET ALLOCATION ASSET ALLOCATION | TRADING PORTFOLIO

SEP/14 SEP/15 SEP/14 SEP/15

Brasilcap

109.3

134.7

153.2

117.4130.4

2012 2013 2014 Sep/14 Sep/15

CAGR 2012-2014 35%

+ 11%

1. Do not includes BB Capitalização


SH155.6%

SH212.9%

Brasilprev17.7%

Brasilcap13.6%

Other0.3%

661

913

1,289

918

1,109

2012 2013 2014 9M14 9M15

SH153.6%

SH214.7%

Brasilprev16.3%

Brasilcap15.1%

Other0.3%

BB Corretora

BROKERAGE INCOME (R$ MM)

ADJUSTED NET INCOME (R$ MM)

BREAKDOWN OF BROKERAGE INCOME

EXPENSES BREAKDOWN & NET MARGIN (%)

9M14 9M15

1,359

1,766

2,308

1,660

1,902

2012 2013 2014 9M14 9M15

22.5 17.6 12.3 12.9 9.8

5.57.2

7.4 7.47.4

25.2 26.728.8 28.5 29.7

53.2 51.548.5 48.7 46.9

48.7 51.755.9 55.3 58.3

2012 2013 2014 9M14 9M15

Operating expenses Tax expenses Income taxes Net margin

CAGR 2012-2014 40%

CAGR 2012-2014 30%

+ 21%

+ 15%


BB Seguridade - Adjusted net income (%)¹ 12 - 21 26.5

Premiums written growth - BB Mapfre SH1 (%) 5 - 8 4.7

Reserves P/VGBL - Brasilprev (%) 27 - 36 36.6

Guidance 2015

Ratio 2015

Estimates 9M15

1. Growth range equivalent to net income estimated in Guidance 2015


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]

Public Meeting 2015 - Banco do Brasil · Foto por Lula Marques Rafael Sperendio Head of IR Foto por...

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