Company Presentation. 3 rd Quater 2018

Transcription

1 Company Presentation 3 rd Quater 2018

2 HIGHLIGHTS 9M18 Group Revenue R$ 20.5 bi R$ million / YoY +22.3% +37.9% +4,0% +8,4% +13,2% Market Share 10.2% 2Q18: 10.4% 3Q17: 8.1% Operating Revenue 9M16 9M17 9M % R$ million / YoY +1.1% +28.7% ROE 33.7% a.a. R$ 1,278.6 mi 2Q18: 36.3% p.a. 3Q17: 34.1% p.a. 9M16 9M17 9M18 Net Profit +7.8% R$ million / YoY +1.5% +26.2% Profit Margin 82.3% R$ 1,052.4 mi 9M16 9M17 9M18 2Q18: 81.4% 3Q17: 84.5% (1) SPI Share of Profit of Investees. (2) BDF Bancassurance Distribution Fee 2

3 Executive Board Raimundo Lima CEO Thiago Souza CFO Paulo Furtado Chief Risk and Compliance Officer Gustavo Fernandes Chief Comercial and Products Officer Tunas Ferreira Chief Governance Officer Bachelor in Mathematics, holds post-graduate degrees in Retail Marketing and in Development and Project Analysis. CAIXA s career employee, joined the bank in In the most recent period, held the position of Director of New Acquisitions of CAIXA Participações SA and Director of Channel and New Business Management at Caixa Seguros Saúde. Holds a degree in Accounting, a post-graduate degrees in Controllership and Finance and currently competes for the master s degree in economics. CAIXA's career employee, joined the bank in In the most recent period, held a position of the National Superintendent of Finance, Controllership and IR in the company. Previously, acted as Consultant for the Vice Presidency of Finance and Controllership and Accounting National Manager at CAIXA. Holds a degree in Law and a postgraduate degree in Economic and Corporate Law and Corporate Governance. CAIXA's career employee, he joined the bank in 1979, where acted as Lawyer in many diferent areas. Was a board member das Centrais Elétricas do Pará S.A., Foz do Brasil S.A., Tele Norte Leste Part. S.A., Companhia Vale do Rio Doce S.A. and Valepar S.A.. Was also CEO of FUNCEF and Postalis and held key positions in the administration of FGTS (Guarantee Fund for Length of Service). Holds a degree in Law, a postgraduate degrees in Corporate Finance and Management and post-graduate degrees in Business Management. CAIXA's career employee, joined the bank in In the most recent period, held the position of National Superintendent of Business with Big Companies, Corporate Executive Superintendent, Regional Superintendent of Southern Pará, Regional Manager of the Regional Superintendence of Campinas/SP and Regional Manager of the Regional Superintendence of Sorocaba/SP at CAIXA. Holds a degree in Civil Engineering and a post-graduate degree in Business Management. CAIXA s carrer employee, joined CAIXA in In the most recent period, held the position of Superintendent of Ownership Governance of Caixa Seguridade and advisor to the CAIXA s presidency between. 3

4 INTERNAL STRUCTURE General Meetig Fiscal Concil Board of Directors Internal Audit Audit Committee Eligibility Committee Related-Party Committee In its implementation phases Compensation Committee EXECUTIVE BOARD CEO CFO Risk and Compliance Governance Comercial and Product 4

5 AGENDA 1 Company Timeline. Insurance Business at CAIXA. Current Business Structure. Current Sales Model. Distribution Platform. Growth Potential. 2 Insurance Sector World Insurance Penetration. Brazil Insurance x GDP. Brazil Bancassurance Dominance. 3 CAIXA Seguridade Results Growth History. Earnings Dashboard. Holding Dashboard. Group Dashboard. 4 Growth Strategy Sales Team. New Business Structure. New Sales Model.

6 TIMELINE New Executive Board Reorganization Risks, Compliance, Internal Controls and Legal are treated in a new Officer Governance is treated separately and will gain strength with the new business model CAIXA Seguridade starts the reorganization of its commercial partnerships CNP New Agreement Attempt to go public Company was still in a pre-operational stage Brazil's largest distribution platform and strong investment case attracted the market to the process, but the business was considered complicated CAIXA Seguridade CAIXA Seguridade is created by CAIXA to organize its shareholdings in the insurance segment Concession of 35 years renewable for the same period for exploration of CAIXA network. Postponement Adverse market conditions and and the agreement with CNP ending as early as 2021 would bring risks and discounts into the IPO process and the company decides to postpone it Operacional Capacity Finance and IR Officer is formed Comercial Officer joined CAIXA Seguridade Governance, Risk and Compliance Officer is created Financial Advisors Credit Suisse and BB Investimentos are hired to advise on the process of commercial partnerships reorganization McKinsey McKinsey is hired to prepare a business plan for each segment of the Company's operations Negotiation Process In June 2017, negotiations began with CNP Assurances for selected segments. In September 2017, a non-binding memorandum of understanding was signed Competitive Process Launch of the competitive process to find partners for housing and consortium insurance and for auto and elementary insurance Highest Net Profit Ever CAIXA Seguridade profits R$ 1.3 billion, 19.2% growth compared to 2016 CAIXA Security signs new agreement with CNP for a new partnership until 2041 NEW SCOPE NEW TERM NEW PARTICIPATION NEW GOVERNANCE NEW BUSINESS MODEL NEW PARTNERS Wiz Agreement Agreement also signed with Wiz Soluções, enabling the brokerage's exclusivity at the CAIXA network until February

7 INSURANCE BUSINESS AT CAIXA THE BANK THE HOLDING THE INSURER THE BROKER 100% 100% 48% 25% Government Ownership Controlled by the Federal Government Government Ownership Controlled by CAIXA Private Company Associated Company of CAIXA Seguridade Private Company Investee of Caixa Seguradora Owner of the largest banking distribution platform in Brazil Created by CAIXA to organize its holdings in the insurance and private pension sectors Partnership with the French CNP Assurances Broker of Caixa Seguradora Defines business strategy Performs the sale through its distribution network Develops and implements commercial strategy Establishes the link between the bank and the insurer Develops and implements product strategy Issue the insurance premiums at CAIXA s branches Manages reserves of accumulation businesses Formats insurance products Support the sale Carry out the backoffice activities in the sales process $ Net Profit of Caixa Seguridade 100% Consolidates the holding company's results $ BDF + $ Net Profit of CAIXA Seguradora 48% Receives dividends from the insurer $ + Net Profit of CAIXA Seguros $ Net Profit of WIZ 25% Receives dividends from the broker $ Net Profit of Wiz 7

8 Current Business Structure Caixa Seguros Holding \\\\\\\\ BDF Caixa Seguros Saúde Caixa Seguros Part. Securitárias Tarifa paga como % do prêmio emitido Odonto Empresas Caixa Seguradora Caixa Consórcios Caixa Vida e Previdência CNPX S.A.S (Colombia) Caixa Capitalização PAN Seguros Wiz Soluções e Corretagem Youse PAN Corretora Bancassurance Channel Caixa Seguros Participações do Sul Operating Revenue Bancassurance Channel 8

9 CURRENT SALES MODEL Bancassurance Model Commissioning Dynamics CLIENT The client goes to the bank to make a transaction and the manager offers a security product. Accounts Opening, Mortgages, Credit Security Products Offering MANAGER Bank Transaction Security Product Insurance premium is paid in cash or in instalments CLIENT Insurance Premium Payment SALES ASSISTANT CONSULTANT Receives the total amount and pays a fee back to the commercial chain Products Offered Channels Products Branch Correspondents Lottery Outlets Housing Letters of Credit Auto P&C Life Private Pension Premium Bonds Credit Risk Commission fee Rates by product Distribution revenues Revenue received regarding the use of the distribution channel ( BDF ) Empregados Incentive plan that award points that employees can exchange for benefits relationship program Outros Canais Commissions to bank correspondents and lottery outlets to distribute insurance products 9

10 PLATAFORMA DE DISTRIBUIÇÃO CAIXA Largest distribution platform in Brazil (1) Level change in recent years 3,380 Branches 791 Service Stations 8,727 CAIXA Aqui Credit Clients Branches Written Premiums CAIXA Credit Portfolio (R$ bn) CAGR: 21.6% CAIXA Clients (mm) CAGR: 7.8% CAIXA Branches ('000) CAGR: 6.4% Insurance Premiums Issued by CAIXA (R$ bn) CAGR: 17.6% 29,520 ATM 13,045 Lottery Outlets Leadership position in Brazil (2) Assets (R$bn) Loans (R$mm) Total Deposits (R$mm) Saving Accounts Deposits (R$mm) Number of Branches 1, st st st +1,188 1, ,775 4,705 1,283 3 rd ,385 3,380 2,696 2,197 1, (1) Performance Analysis Report CAIXA 3Q18 (2) Source: BACEN SEP

11 POTENCIAL DE CRESCIMENTO 9M18 Credit vs Insurance 10% 22% 22% 22% 19% 16% 12% 19% 6% 12% Insurance Market Share 1 Credit Market Share 2 Greater Growth Potential M&A IPO Market Share (%) (1) Source: SUSEP (2) Source: Central Bank and Banks Financial Statements T18 2T18 3T18 BB Seguridade Bradesco Itaú Caixa Seguridade Zurich-Santander 11

12 AGENDA 1 Company Timeline. Insurance Business at CAIXA. Current Business Structure. Current Sales Model. Distribution Platform. Growth Potential. 2 Insurance Sector World Insurance Penetration. Brazil Insurance x GDP. Brazil Bancassurance Dominance. 3 CAIXA Seguridade Results Growth History. Earnings Dashboard. Holding Dashboard. Group Dashboard. 4 Growth Strategy Sales Team. New Business Structure. New Sales Model.

13 WORLD INSURANCE PENETRATION Insurance Penetration 1 % Premium/GDP, 2016 Insurance Penetration: ~30% car fleet ~15% homes ~9% population (life insurance) Insurance Penetration: ~96% car fleet 2 ~96% homes ~44% population (life insurance) Developed Markets Emerging Markets France Japan United Kingdom USA Spain Germany Australia GDP per capita 1 Includes Life, Private Pension and Non-Life 2 Mandatory for some kinds of insurance coverage Source: Swiss Re, The World Bank, IMF, Economist Intelligence Unit, Insurance Information Institute (data verified and formatted by McKinsey) 13

14 BRAZIL INSURANCE x GDP 13.8% Written Premiums as % of GDP December 2017 Written Premiums as % of GDP 11.6% 9.6% 8.9% 8.6% 8.3% 7.1% 2.7% 2.9% 2.9% 3.0% 3.3% 3.3% 3.4% 3.7% 3.8% 3.8% 6.1% 6.0% 5.6% 3.8% 3.7% 3.7% 3.3% 2.2% 1.4% world EM % Insurance Penetration by Product % of population, except for Auto (% of fleet) and Residential (% of households), in Dec 2017 Written Premiums 1 vs GDP 20% 19% 15% 14.1% 10.3% 16.4% 16.3% 18.3% 13.3% 12.1% 11.6% 10.5% 6.3% 11% 6% 7.5% 5.1% 3.9% 1.9% 3.0% -0.1% 0.1% 1.0% -3.8% -3.6% Health Auto Life Residential Dental Plans Pension Plans Written Premiums Growth GDP Growth (1) Source: SUSEP, CNSeg, ANS, Wall Street Research 14

15 BRAZIL BANCASSURANCE DOMINANCE Market Share Written Premiums (1) 9M2018 Stable dominance of the bancassurance model 18.9% 11.5% 10.2% 6.3% 0.3% 30.5% Independentes 5.4% 2.3% 2.2% 2.2% 2.1% 16.2% Others Bancassurance vs Independent Written Premiums M % 73% 29% 28% 27% 26% 71% 72% 73% 74% 28% 72% 30% 70% 22.3% Written Premiums (1) Market - R$ billion Bancassurance Independente Steadily growing over recent years M2018 (1) Source: SUSEP, includes written premiums, private pension contributions and premium bonds collections. 15

16 AGENDA 1 Company Timeline. Insurance Business at CAIXA. Current Business Structure. Current Sales Model. Distribution Platform. Growth Potential. 2 Insurance Sector World Insurance Penetration. Brazil Insurance x GDP. Brazil Bancassurance Dominance. 3 CAIXA Seguridade Results Growth History. Earnings Dashboard. Holding Dashboard. Group Dashboard. 4 Growth Strategy Sales Team. New Business Structure. New Sales Model.

17 HISTÓRICO DE CRESCIMENTO 2000 Crisis Stabilization Growth Period Subprime Global Crisis Stabilization Growth Period Economic Crisis in Brazil Net Profit R$ million digits growth, especially during crisis cycles ,052 CAIXA Seguridade creation provided focus to the insurance business within CAIXA Change in commercial performance in 2017 boosts business Net Income accumulated until September is 7.8% higher than the same period of M2018 CAGR 20.6% CAGR 24.9% CAGR 18.5% CAGR 15.8% 17

18 EARNINGS DASHBOARD SUSEP Segments 30, , , , , , % 9.0 0% 7.0 0% 5.0 0% 3.0 0% 1.0 0% -1.00% Written Premiums 1 (R$ million) 4.50% 8,983 6, % 11,793 8, % 14,269 10, % 19,977 14, % 18, / % 9M18 / 9M % Growth by Segment 1 9M18 / 9M17 Market Private Pension +37.9% -8.6% Premium Bonds +13.2% +2.9% Insurance +4.0% +6.9% Life +7.9% +5.2% Credi Life +5.4% +21.2% Residential +33.5% +15.7% M Full Year Market Share Market Share 10.2% Housing +5.7% +7.2% Auto -7.1% +6.6% P&C - Others -10.8% +0.1% Market Share 1 (R$ million) RKN 2018 RKN 2017 Group 9M18 Share% Sep18 Share% Dec17 9M17 Share% Sep17 9M18 9M BB Seguridade 39, % 24.93% 44, % % 2 2 Bradesco 33, % 20.30% 35, % -5.00% 3 3 Itaú 20, % 12.36% 22, % % 4 4 CAIXA Seguridade 18, % 8.08% 14, % 24.25% 5 5 Zurich-Santander 11, % 5.88% 10, % 5.52% 6 6 Porto Seguro 9, % 4.82% 8, % 10.70% MARKET 178, , % (1) Source: SUSEP, includes written premiums, private pension contributions and premium bonds collections. 18

19 EARNINGS DASHBOARD Consortium Letters of Credit 1 Real State (R$ million) RKN 2018 RKN 2017 Group 9M18 Share% Sep18 9M17 Share% Sep17 9M18 9M Bradesco 32, % 28, % % 2 2 Porto Seguro 17, % 15, % +8.55% 3 3 CAIXA Seguridade 16, % 15, % +6.79% Market Share Real State Others 46.06% 19.94% 10.71% 4 4 Itaú 10, % 9, % % 7 9 BB Consórcios 6, % 5, % % 10.51% Santander 3, % 3, % % MARKET 161, , % 2.09% 4.02% 6.68% Letters of Credit 1 Vehicles (R$ million) RKN 2018 RKN 2017 Group 9M18 Share% Sep18 9M17 Share% Sep17 9M18 9M Bradesco 47, % 42, % % 2 2 BB Consórcios 23, % 21, % +8.04% Market Share Vehicles Others 44.35% 26.96% 3 3 Itaú 15, % 12, % % 8 9 CAIXA Seguridade 4, % 3, % % Santander 4, % 2, % % 13.53% Porto Seguro 2, % 2, % % MARKET 174, , % 1.55% 2.33% 2.60% 8.68% (1) Source: Central Bank of Brazil, Active Letters of Credit x Average Value of Good. 19

20 PAINEL HOLDING 9M2018 Income Statement (R$ million) ROE 33.7% a.a. 9M2017: 34.1% a.a. Margem Líquida 82.3% 9M2017: 84.5% Net Income (R$ million) ,051.0 CAGR 16.5% 1, ,298.9 (1) SPI Share of Profit of Investees. (2) BDF Bancassurance Distribution Fee , M2017 9M BDF SPI 9M18 / 9M17 NET PROFIT +7.8% SPI % BDF % Performance History (cumulative results) 85.7% 86.0% 85.6% 85.5% 83.4% 84.7% 84.5% 84.1% 80.4% 81.4% 82.3% 39.2% 36.2% 33.3% 31.9% 36.8% 38.0% 34.1% 32.7% 38.5% 36.3% 33.7% 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 RSPL MARGEM LÍQUIDA Operating Revenue Distribution (R$ million) Consortium 3% Others 4% Private Pension Housing 17% Premium Bonds BDF Success Fee 17% Credit Life 46% Caixa Saúde 1.1% Caixa Consórcio 3.2% Caixa Capitalização 3.1% Caixa Vida & Prev. 16.6% Outras/ Ajustes -6.1% PAN Seguros 3.9% SPI PAN Corretora 0.5% Caixa Seguradora 65.7% 20

21 CAIXA SEGURADORA DASHBOARD 7,00 0 6,00 0 5,00 0 4,00 0 3,00 0 2,00 0 1,00 0-1,40 0 1,20 0 1, ,00 0 5,00 0 4,00 0 3,00 0 2,00 0 1, Written Premiums YoY R$ million +4.5% 3,087 2, % 4,659 4,462 1, % 1, % 1, % 1,491 1,501 1,586 1,571 5,953 Q1 Q2 Q3 Q QUARTERLY 2018 QUARTERLY 2017 YEAR-TO-DATE 2018 YEAR-TO-DATE Caixa Seguros recorded a 4.2% increase in 3Q18 compared to 3Q17. Acting positively for this result Credit Life Insurance (+11.4%), Housing (+2.1%), Life (+1.5%), P&C (+31.2%) and Auto Insurance (+5.2%). The Retained Premium in 3Q18 was 77.4% higher when compared to 3Q17 and 32.9% higher than the value accumulated in Growth explained by the reversal of technical provision in the housing insurance. Retained Premium YoY R$ million +9.3% 2, % 4,972 3,756 2, % 2, % 1,204 1, % 1,273 1,213 1,357 1,357 4,969 Q1 Q2 Q3 Q QUARTERLY 2018 QUARTERLY 2017 YEAR-TO-DATE 2018 YEAR-TO-DATE Net Profit YoY R$ million +41.1% 1,189 1, % 53.8% ROAE 54.4% % % % % The increase in production and the decrease in technical provisions sustained growth in net profit, more than offsetting the increase in administrative expenses and the fall in financial income. 52.1% 48.2% 44.2% 46.1% Q1 Q2 Q3 Q QUARTERLY 2018 QUARTERLY 2017 YEAR-TO-DATE 2018 YEAR-TO-DATE Q1 Q2 Q3 Q

22 CAIXA SEGURADORA DASHBOARD Loss Ratio (Claims / Retained Premium) +31.1% +32.2% +33.3% +30.3% +30.2% +31.6% +26.3% +29.5% +28.1% +26.8% +36.0% +30.8% +29.2% +24.3% +30.2% +28.6% +30.2% +27.1% +25.1% 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q % 3Q18 QUARTERLY YEAR-TO-DATE The claims occurred increased by 3.3%, but with the premium growth, the loss ratio fell to 21%, against 36% in 3Q17. Acquisition costs increased 13.1%, driven by higher commissioning paid to life insurance (+ 24.6%) and credit life (+ 18.1%). However, with the retained premium increase, the commissioning ratio fell from 18.9% in 3Q17 to 12% in 3Q18. Commission Ratio (Acquisition Cost / Retained Premium) +18.2% +17.6% +17.9% +18.2% +20.4% +19.1% +18.9% +18.8% +19.1% +22.5% +20.8% +16.8% +12.0% 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 QUARTERLY YEAR-TO-DATE G&A Ratio (Administrative + Tax + Other Operating Expenses) / Retained Premium +17.1% +16.9% +16.8% +15.5% +15.8% +16.5% +13.6% +15.1% +15.1% +12.9% +19.6% +16.0% +10.8% 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 QUARTERLY YEAR-TO-DATE The G&A ratio grew 4 percentage points compared to 3Q17 and more than 8 percentage points when compared to the previous quarter. The increase in expenses occurred in all items of the index, but was more concentrated in other expenses as a result of new IT projects, allocated especially in housing insurance. The combined ratio, which combines claims, commissioning and general and administrative expenses, fell to 52.6%, driven by the fall in the claims and commissioning rates. Combined Ratio (Claims + Acquisition + Other Rev. + G&A) / Retained Premium +64.8% +63.0% +61.2% +70.4% +65.5% +63.7% +64.3% +58.3% +64.3% +62.3% +60.4% +57.9% +52.6% 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 QUARTERLY YEAR-TO-DATE 22

23 CAIXA VIDA & PREVIDÊNCIA DASHBOARD % 1.4 0% 1.2 0% 1.0 0% 0.8 0% 0.6 0% 0.4 0% 0.2 0% 0.0 0% % 2.5 % 2.0 % 1.5 % 1.0 % 0.5 % 0.0 % Contributions YoY R$ billion +47.8% % % % % % Q1 Q2 Q3 Q4 Management Fee QUARTERLY 2018 QUARTERLY 2017 YEAR-TO-DATE 2018 YEAR-TO-DATE 1.49% 1.47% 1.45% 1.43% 1.41% 1.44% 1.37% % % % The private pension plans at the CAIXA s network continued to grow in relation to the previous year, but did not exceed the volume in 2Q18, in that comparison the contributions were 11.5% lower. This drop is the result of a natural downward movement in the level of engagement of the sales force due to the overrun of the first semester goals in view of the extra effort undertaken in the period, and does not represent the approximation of a possible penetration limit in the CAIXA s network. Reserves and Redemptions 2.9% 2.9% 2.8% 2.7% % +27.8% % 3.1% +27.9% % Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 Reserves (YoY / R$ billion) Net Profit YoY R$ million +45,6%; Redemption Ratio % (Redemption / Reserves) +42,2%; ,2%; Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 Management Fee (YoY / R$ billion) Average Rate (%) M 6M 9M 12M

24 CAIXA CAPITALIZAÇÃO DASHBOARD % % % % % 8.0 0% 6.0 0% 4.0 0% 2.0 0% 0.0 0% Premium Bonds Collection YoY R$ million +8.3% % 1, % % +23.3% ,207.9 Q1 Q2 Q3 Q QUARTERLY 2018 QUARTERLY 2017 YEAR-TO-DATE 2018 YEAR-TO-DATE The increase in sales was higher in monthly payment products, which grew 6.7% compared to the immediately previous quarter, due to the new product for the sale in the cashier s office. The new product implemented on July 10 sold more than 184,000 new contracts until September, an average of more than 3,000 per day. It was R$ 7.4 million collected in the period. 16.5% % 14.0% 44.8 Management Fee % 13.4% 13.8% % % % +42.0% Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 Management Fee (YoY / R$ million) Rate % (Management Fee / Collection) Reserves (R$ million) Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 Net profit in 3Q18 was in line with 3Q17 results (+ 0.4%), and remained 2.4% above the previous year in the balance accumulated until September. Compared to the immediately previous quarter (2Q18), the result was 37.7% higher. Net Profit YoY R$ million % % % % % Q1 Q2 Q3 Q QUARTERLY 2018 QUARTERLY 2017 YEAR-TO-DATE 2018 QUARTERLY 24

25 CONSORTIUM DASHBOARD % % % % 8.0 0% 6.0 0% 4.0 0% 2.0 0% 0.0 0% Funds Collected YoY 18/17 R$ million +8.3% 1, , % 2, , , % % 14.08% 14.02% 14.30% 14.26% 13.70% 93.5 Revenue from Services % % % % % % Q1 Q2 Q3 Q QUARTERLY 2018 QUARTERLY 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q YEAR-TO-DATE 2018 YEAR-TO-DATE Revenue from Services (YoY / R$ million) Rate % (Revenue / Funds Collected) Net Profit YoY 18/17 R$ million % % % % % Q1 Q2 Q3 Q QUARTERLY 2018 QUARTERLY 2017 YEAR-TO-DATE 2018 YEAR-TO-DATE A queda de 22,8% nas receitas de intermediação financeira e a elevação das despesas operacionais (+15,9%), em especial as despesas de comercialização, e o aumento de 5,2% nas despesas administrativas resultaram no menor lucro neste trimestre, apesar do aumento da produção. Letters of Credit 2Q18 71% 3Q18 73% 3Q17 74% 3Q17 26% 2Q18 29% 3Q18 27% Vehicles Real State 25

26 AGENDA 1 Company Timeline. Insurance Business at CAIXA. Current Business Structure. Current Sales Model. Distribution Platform. Growth Potential. 2 Insurance Sector World Insurance Penetration. Brazil Insurance x GDP. Brazil Bancassurance Dominance. 3 CAIXA Seguridade Results Growth History. Earnings Dashboard. Holding Dashboard. Group Dashboard. 4 Growth Strategy Sales Team. New Business Structure. New Sales Model.

27 SALES TEAM PROGRAM Score Reached Half Yearly Sales team program employee overview CAIXA s employees breakdown per rank CAIXA ranks its sales team though a pointing system regarding their performance during the month. Silver Gold 10,000 Diamond Top performers: 42.2% Silver 8.0% Gold 2% 1.2% ,200 Bronze 2,000 2,500 3,500 4,500 7,000 If a gold employee is able to sustain his gold score for at least 5 months, he becomes a diamond employee. Bronze 32.7% Employees Ranked Ranking Level 2 a % Level % Sales Team Program team overview CAIXA s top performing teams Level % of team required to be top performers (1) The sales team program ensures: Elite Team Master Team Elite team 40% 1- Strategic alignment Master team Source: Notes:. 30% Company. (1) Percentage of employees in a given sales team ranked bronze or above required to reach each team level. 2-Top performers recognition 27

28 RESULTADOS DO PROGRAMA Complaints addressed to Central Bank % of product sales with digital signature -25% 3Q17 2Q % 62.1% 3Q17 3Q thousand ACCESS PER DAY % of employees sellers % of cancellation within 90 days 27.33% 42.1% 3Q17 3Q18 5.9% 4.8% 3Q17 3Q18 Employees who at least doubled their production after the Sales Team's launch compared to the previous period 23,109 Source: SIGPF; BACEN To be a reference in efficiency, trust and costumer satisfaction, ensuring profitability in all business. CAIXA s Vision Statement 28

29 NEW BUSINESS STRUCTURE 1 2 Maximum percentage proposed in the competitive process Minimum percentage proposed in the competitive process Bancassurance Channel NEW HOLDING 1 NEW HOLDING 2 NEW HOLDING 3 NEW HOLDING 4 NEW HOLDING 5 OWN BROKER Until 2021 LIFE CREDIT LIFE PENSION PLANS X HOUSING AND CONSORTIUM Z AUTO P&C Y PREMIUM BONDS W DENTAL PLAN Service Provision CO-BROKER Competitive Process Post 2021 Caixa Seguros Holding RUN-OFF PAN Seguros PAN Corretora Bancassurance Channel 29

30 NOVO MODELO DE VENDA DE SEGUROS NA CAIXA Bancassurance Model Commissioning Dynamics Insurance premium is paid in cash or in instalments CLIENT Insurance Premium Payment New Holding 1 New Holding 2 New Holding 3 New Holding 4 Receives the total amount and pays a fee back to CAIXA Seguirdade s own broker Produtos Oferecidos OWN BROKER Channels Segments BRANCHES Correspondents Lottery Outlets Life Private Pension Credit Life Premium Bonds Housing Letters of Credit Auto P&C DIVIDEND Own brokerage returns part of the commission in the form of dividends CO-BROKER Until 2021 Competitive Process Choice of a service provider for post February 2021 Employees Incentive plan paid through points that can be redeemed for benefits Other Channel Commission for banking and lottery correspondents for the distribution of insurance 30

31 CONTACT Investor Relations Setor de Autarquias Sul, Qd. 3, Bloco E, 3º andar Ed. Sede Matriz III, Asa Sul Brasília DF Telefone: