Institutional Presentation

Transcription

1 Institutional Presentation BBSEY ADR - Level I

2 Overview

3 Track Record IPO Equity Establishment of ADR Level I 2012 Establishiment of investment in IRB Brasil RE 1981 Establishment of BB s insurance operations 1987 BB Corretora s establishment 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 Ownership restructuring of BB s insurance, Pension Plans and Premium Bonds division 2010 Establishment of the Joint Venture with Mapfre BB Seguridade Brasildental¹ Partnership with Odontoprev ¹ Pending approval by ANS (Agência Nacional de Saúde Suplementar). BB Seguridade Participações S.A. Investor Relations 3

4 Estrutura Acionária - Parcerias Ownership Structure Free Float (Post IPO) 33.75% 66.25% 100% Total 100% Total BB Seguros BB Cor BB Mapfre SH1 Life, Rural Mapfre BB SH2 P&C Brasilprev Pension Plans Brasilcap Premium Bonds IRB Brasil Re Reinsurance Brasildental Dental Insurance BB Corretora Brokerage BB Seguridade Economic Stake (%) 74.9% 50.0% 74.9% 66.7% 20.5% 74.9% 100% BB Seguridade Voting Stake (%) 49.9% 49.0% 49.9% 49.9% 20.5% 49.9% 100% Board of Directors Representation (%) 50% 50% 50% 67% 20% 50% Awaiting the approval by ANS (Agência Nacional de Saúde Suplementar) Position until 03/31/2014 BB Seguridade Participações S.A. Investor Relations 4

5 Internal Estrutura Structure Acionária - Parcerias General Meeting Fiscal Council Board of Directors Audit Commitee Executive Board CEO Marcelo Augusto Dutra Labuto Chief Financial Officer Werner Romera Suffert Chief Corporate Governance Officer Leonardo Giuberti Mattedi Chief Business Development Officer Ângela Beatriz de Assis BB Seguridade Participações S.A. Investor Relations 5

6 Shareholders Structure MAR/14 FREE-FLOAT BREAKDOWN MAR/14 Individuals 5.6% Free-float 33.8% Institutional 31.7% Banco do Brasil 66.3% Foreign Investors 62.6% BB Seguridade Participações S.A. Investor Relations 6

7 ADR Program In 2014, BB Seguridade established a sponsored Level I American Depositary Receipt (ADR) program. Depositary Bank: Deutsche Bank Trust Company Americas Custodian Bank: Banco do Brasil S.A. Ticker: BBSEY Structure: Level I ADR Exchange: Over-the-counter (OTC) market Ratio (ADR:ORD): 1 ADR : 1 ORD DR ISIN: US05541J1034 CUSIP: 05541J103 BB Seguridade Participações S.A. Investor Relations 7

8 Corporate Governance Board of Directors: Six members: 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 The CEO of BB Seguridade One member appointed by the minority shareholders Board of Executive Officers: Four members: Related-party Comittee Stocks 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 Only common shares 100% tag along 80% payout (semi annual dividends) BB Seguridade Participações S.A. Investor Relations 8

9 Corporate Governance Affiliates Board of Directors Board of Executive Officers SH1 Life 16 members 8 appointments 8 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 16 members Aliança do Brasil Seguros S.A BB Mapfre Assistência Brasilveículos Mapfre Affinity Seguradora S.A Mapfre Seguros Gerais S.A SH2 P&C 8 appointments 8 appointments 6 appointments 6 appointments 2 Appointments 2 appointments 6 appointments 6 appointments 6 appointments 6 appointments 6 appointments 6 appointments 16 members Brasilprev Pension Plans 8 appointments 8 appointments 3 appointments 3 appointments 12 members Brasilcap Premium Bonds 8 appointments 2 appointments 2 appointments 4 appointments 3 members Broker 3 appointments Brasildental Dental Insurance 4 members 2 appointments 2 appointments 3 members 1 appointment 1 appointment Consensus 1 appointment 10 members IRB-RE Resseguro 2 appointments BB Seguridade Participações S.A. Investor Relations 9

10 Scope of the Related-Party Committee Related-party SH1 SH2 Brasilprev Brasilcap Captive access to Banco do Brasil s network 20-year term No termination clause Signed in January 2013 Arm s length 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 Any proposal for changes in the agreements must be examined by the Related-party Committee and the independent member has a veto power BB Seguridade Participações S.A. Investor Relations 10

11 Backed by Banco do Brasil with Expertise of Private Partnerships 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 BB Seguridade Participações S.A. Investor Relations 11

12 Competitive Advantage BB Seguridade strategy focuses on bancassurance with its own broker, taking advantage of the captive access to Banco do Brasil distribution network. Own Brokerage Distribution Channel Low complexity business model No underwriting risk Bank Channel 60.3 Million clients 5,474 Branches 63,536 ATMs 15,802 Banking Correspondents 1 º 32,646 Points of service in shared network Low capital needs Non-banking Channel 138 Partnerships (Affinity) Captive access to larger distribution network in Latin America 20,929 External Brokers BB Seguridade Participações S.A. Investor Relations 12

13 Strong Financial Performance ROE 1Q14 (%) INSURANCE COMPANIES ASSOCIATED WITH BANKS TRADITIONAL INSURANCE COMPANIES BROKERS Brokerage participation 49.6% 39.7% 35.3% 26.0% 18.2% 16.3% 15.3% 12.5% 9.8% 9.4% 12.1% 6.6% Source: Companies and Susep BB Seguridade Participações S.A. Investor Relations 13

14 Macroeconomic Environment

15 Global Macroeconomic Data E 2015E 2016E World Economy - GDP Growth World¹ 2.8% USA¹ 1.8% Euro Zone¹ 1.5% China¹ 9.3% Brazilian Economy GDP Growth - Brasil² 2.7% SELIC (ends of period)² 11.0% SELIC (year avarage )² 11.7% Inflation (IPCA)² 6.5% Inflation (IGP-M)² 5.1% Dollar (quotation in R$)² % 2.4% 3.2% 3.4% 3.5% 2.7% 1.8% 2.8% 2.9% 3.0% -0.6% -0.4% 1.1% 1.4% 1.5% 7.7% 7.7% 7.7% 7.5% 7.5% 0.9% 2.3% 1.7% 1.9% 2.6% 7.3% 10.0% 11.3% 12.3% 11.0% 8.5% 8.4% 11.0% 12.0% 11.4% 5.8% 5.9% 6.4% 6.0% 5.5% 7.8% 5.5% 7.2% 5.5% 5.3% Source: World Bank, 2. Source: Focus - Bacen do Brasil BB Seguridade Participações S.A. Investor Relations 15

16 Bancassurance POPULATION WITH CHECKING ACCOUNT¹ (%) ACCOUNTS IN BRAZIL (MM) United Kingdom United States Source: World Bank ; 1 Data from 2011 BRANCHES IN BRAZIL Italy China Brazil Venezuela Chile Checking accounts Savings accounts Source: Febraban BANCASSURANCE IN INSURANCE DISTRIBUTION (%) 5,474 5,028 4, % 67.7% 69.3% 69.0% 3,288 2, ² Banco do Brasil Bradesco Itaú Caixa Santander Others Market share BB Seguridade Participações S.A. Investor Relations Source: SUSEP ; 2 Data as of November,

17 Taiwan South Africa Netherlands Hong Kong South Korea Japan United Kingdom Finland Switzerland France United States Germany Italy Portugal Slovenia Spain Chile Venezuela Brazil Argentina China Mexico Global Insurance Industry Insurance market presents low penetration level in Brazil Insurance premiums 1 / GDP (%, 2012) 3.2 Life Insurance Premium / GDP Non-Life Insurance Premium / GDP #42 In Total Insurance #62 In Life Insurance Source: SUSEP and Swiss Re Sigma 03/ Excluding businesses abroad BB Seguridade Participações S.A. Investor Relations 17

18 Insurance Industry in Brazil INSURANCE PREMIUM EVOLUTION (MONTHLY - R$ BN) INSURANCE PREMIUM EVOLUTION (YEARLY - R$ BN) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Source: SUSEP BB Seguridade Participações S.A. Investor Relations 18

19 Netherlands UK Switzerland US Australia Canadá South Africa Japan Ireland Hong Kong Germany Brazil¹ France Global Macroeconomic Scenario Pension Plans Pension market is growing in Brazil due to the life expectation increase Pension Assets/GDP (%) % 170% 112% 131% 122% 118% 113% 108% 105% 101% # 9 In assets 84% 80% 67% 64% 65% 62% 59% 55% 40% 41% 15% 14% 14% 13% 7% 6% 1. Brazil Pension Assets only include those from closed entities 2. Assets/GDP ratio for the world is calculated in USD and assets were estimated as of 31 Dec 2013 Source: Towers Watson BB Seguridade Participações S.A. Investor Relations 19

20 Pension Plans Industry in Brazil REVENUES (MONTHLY - R$ BN) CONTRIBUTIONS (YEARLY - R$ BN) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Source: SUSEP BB Seguridade Participações S.A. Investor Relations 20

21 Performance

22 BB Seguridade at a Glance One of the Largest Insurance, Pension and Premium Bonds Companies in Latin America Fast Growing with High Profitability 46.7% ROAE in 1Q14 Largest Insurance Broker in Latin America Exclusive access to Banco do Brasil s unique distribution network 2 nd Largest P&C Insurance Company in Brazil Around 2.4 million insured vehicles and R$ 2 billion in premiums written in 1Q14 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 126 employees at the holding and broker level 7,314 employees at the affiliates level 1. Adjusted ROAE, considering the distribution of dividends BB Seguridade Participações S.A. Investor Relations 22

23 Growth - BB Seguridade vs. Market SH1 - Premiums Written Life¹ 13.7% -3.5% -0.6% Rural 79.9% -44.1% 35.8% Mortgage Life 63.8% 20.5% 22.8% SH2 - Premiums Written Vehicles -2.3% 4.8% 3.7% Casualties 23.2% 5.9% 8.0% BRASILPREV Contributions -15.9% -24.1% -21.5% Net Inflows -40.5% -97.0% -69.7% BRASILCAP Collections 19.2% 8.5% 11.1% TOTAL Segments BB Seguridade Market (ex- BB Seguridade) Premiums, contributions and collections -2.5% -2.5% -2.5% Source: SUSEP 1. Life includes the segments life and credit life 1 º 1 º 1 º 1 º Market BB Seguridade Participações S.A. Investor Relations 23

24 Market Leadership Leadership positions in all targeted segments Market Share (1Q14) LIFE INSURANCE¹ PENSION PLANS² 1 º 19.2% 17.3% 13.1% 11.9% 34.3% 26.1% 21.2% 5.0% 5.7% 5.5% INSURANCE CONSOLIDATED¹,3 PREMIUM BONDS 4 INSURANCE BROKERAGE (R$ MM) 1 º 1 º 1 o 16.0% 11.7% 11.4% 26.3% 24.4% % 7.2% 11.7% 10.7% 6.2% Revenues Net Income Revenues Net Income Revenues Net Income Source: SUSEP and Companies 1. Premiums earned; 2. Contributions; 3. Considering Life, Rural, Property and Casualty; 4. Collections BB Seguridade Participações S.A. Investor Relations 24

25 Net Investment Income SELIC RATE (%) FORWARD YIELD CURVE (%) /31/ /30/ /28/2013 Mar/13 Jun/13 Sep/13 Dec/13 Mar/14 Source: Focus Banco Central do Brasil NET INVESTMENT INCOME (R$ MM) DI1F15 DI1F16 DI1F17 DI1F18 DI1F19 Source: ValorPro CONTRIBUTION OF NET INVESTMENT INCOME TO EARNINGS (%) SH1 SH2 Brasilprev Brasilcap IRB Others¹ QoQ: p.p. YoY: p.p. QoQ: + 2% YoY: + 108% BB Corretora + Holding BB Seguridade Participações S.A. Investor Relations 25

26 BB Seguridade Performance PREMIUMS, CONTRIBUTIONS AND COLLECTIONS (R$ MM) 23.7% 25.3% 22.2% 26.1% 23.7% REVENUES BREAKDOWN 1Q13 1Q14 QoQ: - 23 % YoY: - 2 % 10,168 11,465 8,720 12,996 9,954 Brasilcap 10.8% SH1 11.8% SH2 18.1% Brasilcap 13.1% SH1 15.6% SH2 20.4% Brasilprev 59.4% Brasilprev 50.9% Revenues Market share PROFITABILITY¹ EARNINGS BREAKDOWN 34.7% 39.1% 38.0% 53.5% 46.7% Others 0.7% 1Q13 IRB 1.3% 1Q14 QoQ: - 8 % YoY: + 43% Adjusted net income (R$ MM) ROAE Adjusted 1 To calculate the adjusted ROAE of 4Q13 and 1Q14 was considered the amount of R$ 6,125 million to equity of Dec/13 (adjusted by the dividends payment) BB Corretora 42.5% BB Seguridade Participações S.A. Investor Relations 26 Brasilcap 3.7% SH1 29.3% Brasilprev 21.0% SH2 2.7% BB Corretora 39.2% Brasilcap 6.4% Brasilprev 20.1% SH1 26.4% SH2 6.6%

27 BB Mapfre SH1 PREMIUMS WRITTEN (R$ MM) BREAKDOWN OF PREMIUMS WRITTEN QoQ: - 11 % YoY: + 30 % 1,201 1,783 1,521 1,739 1,556 Credit Life 23.8% Mortgage Life 2.3% 1Q13 Rural 15.4% Other 5.6% Mortgage Life 2.9% Rural 22.5% 1Q14 Other 6.3% Credit Life 22.8% Life 53.0% Life 45.6% CHANGES IN TECHNICAL RESERVES (R$ MM) EARNED PREMIUM (R$ MM) QoQ: - 78% YoY: - 22% 610 QoQ: + 19% YoY: + 37% 1, ,055 1,173 1,249 1, BB Seguridade Participações S.A. Investor Relations 27

28 BB Mapfre SH1 Adjusted Ratios¹ LOSS RATIO (%) COMMISSION RATIO (%) QoQ: p.p. YoY: p.p. QoQ: p.p. YoY: p.p G&A RATIO (%) COMBINED RATIO (%) QoQ: p.p. YoY: p.p. QoQ: p.p. YoY: p.p Adjusted ratios prepared distributing the line result with reinsurance among the other lines from the income statement BB Seguridade Participações S.A. Investor Relations 28

29 BB Mapfre SH1 NET INVESTMENT INCOME (R$ MM) PROFITABILITY QoQ: + 7% YoY: + 79% % 27.7% 33.1% 48.2% 34.2% QoQ: - 26% YoY: + 30% SOLVENCY Adjusted Net Income (R$ MM) ROAE ASSETS UNDER MANAGEMENT BREAKDOWN % 152.4% 159.3% 128.9% 108.9% Inflation Protected 7.0% MAR/13 MAR/14 5,997 3,774 5,522 5,715 5,5785,356 4,782 4,452 7,209 6,027 Others² 11.4% Pre-Fixed 10.2% Inflation Protected 6.9% Others² 32.5% Pre-Fixed 4.7% Floating 71.4% Floating 55.8% Mar/13 Jun/13 Sep/13 Dec/13 Mar/14 1. Mark-to-market Investments + Receivables (MM) Technical Reserve (R$ MM) Solvency Ratio 2. Agrarian debt bonds, DPVAT, Investment funds BB Seguridade Participações S.A. Investor Relations 29

30 Mapfre BB SH2 PREMIUMS WRITTEN (R$ MM) QoQ: + 1% YoY: + 11% BREAKDOWN OF PREMIUMS WRITTEN 1Q13 1Q14 1,836 1,828 2,122 2,008 2,030 Other 14.2% Other 14.8% Casualties 29.1% Vehicles 56.6% Casualties 33.3% Vehicles 51.9% CHANGE IN TECHNICAL RESERVES (R$ MM) EARNED PREMIUM (R$ MM) QoQ: - 63% YoY: - 86% 184 QoQ: + 3% YoY: + 17% 1,722 1,806 1,938 1,965 2, BB Seguridade Participações S.A. Investor Relations 30

31 Mapfre BB SH2 Adjusted Ratios¹ LOSS RATIO (%) COMMISSION RATIO (%) QoQ: p.p. YoY: p.p. QoQ: p.p. YoY: p.p G&A RATIO (%) COMBINED RATIO (%) QoQ: p.p. YoY: p.p. QoQ: p.p. YoY: p.p Adjusted ratios prepared distributing the line result with reinsurance among the other lines from the income statement BB Seguridade Participações S.A. Investor Relations 31

32 Mapfre BB SH2 NET INVESTMENT INCOME (R$ MM) PROFITABILITY (R$ MM) QoQ: + 3% YoY: + 116% % QoQ: + 54% YoY: + 251% 13.2% 6.2% 8.5% 12.6% SOLVENCY Adjusted Net Income (R$ MM) ROAE ASSETS UNDER MANAGEMENT BREAKDOWN % 143.2% 142.2% 130.8% 128.5% MAR/13 Inflation Protected 4.0% MAR/14 6,846 6,101 5,449 5,662 6,266 5,850 6,149 6,100 7,080 6,384 Inflation Protected 14.6% Others 38.8% Others 42.8% Pre-Fixed 3.1% Mar/13 Jun/13 Sep/13 Dec/13 Mar/14 1. Mark-to-market Investments + Receivables (MM) Technical Reserve (R$ MM) Solvency Ratio BB Seguridade Participações S.A. Investor Relations 32 Floating 30.0% Pre-Fixed 16.5% Floating 50.0%

33 Pension Plans CONTRIBUTIONS (R$ MM) BREAKDOWN OF CONTRIBUTIONS QoQ: - 32% YoY: - 16% Traditional¹ 1.3% 1Q13 Traditional¹ 2.4% 1Q14 6,038 5,895 7,414 5,064 PGBL 9.0% PGBL 9.5% 3,694 VGBL 89.7% VGBL 88.2% MANAGEMENT FEE (R$ MM) 1. Defined remuneration plan PROFITABILITY (R$ MM) QoQ: - 1% YoY: + 15% % 59.0% 58.4% 58.0% 59.9% 128 QoQ: + 5% YoY: + 37% Adjusted Net Income (R$ MM) ROAE BB Seguridade Participações S.A. Investor Relations 33

34 Pension Plans RESERVES (R$ MM) RESERVES BREAKDOWN QoQ: + 5% YoY: + 23% 71,542 74,849 77,229 83,543 87,769 Traditional¹ 10.5% MAR/13 PGBL 26.5% Traditional¹ 9.5% MAR/14 PGBL 23.7% VGBL 63.0% VGBL 66.8% Mar/13 Jun/13 Sep/13 Dec/13 Mar/14 TRADITIONAL PLANS PORTFOLIO 1. Defined remuneration plan ASSETS UNDER MANAGEMENT BREAKDOWN Pre-Fixed 5.5% Floating 6.0% MAR/13 MAR/14 MAR/13 MAR/14 Pre-Fixed 6% Floating 5% Debentures and commercial papers 8.4% Stocks 3.3% Debentures and commercial papers 7.2% Stocks 2.1% Securities² 15.2% Securities² 15.9% Inflation Protected 88.5% Inflation Protected 89% Government Bonds 73.1% Government Bonds 74.8% 2. Securities = Time deposits, Time Deposit with Special Guarantee, Real Estate Receivables Certificate, Creditory Rights, Letras Hipotecárias and Letras Financeiras BB Seguridade Participações S.A. Investor Relations 34

35 Brasilprev vs. Market NET INFLOWS (R$ MM) NEW SALES (QUANTITY OF PLANS) Market Share Brasilprev 1Q13: 48.3% 1Q14: 94.8% 4,237 4,543 8,780 Sporadic 34.7% 1Q13 1Q14 Sporadic 14.6% 2, ,657 Periodic Plans 65.3% Periodic Plans 85.4% Brasilprev Industry (ex-brasilprev) Industry Source: Quantum Axis 1Q13 1Q14 REDEMPTION RATIO YEAR-TO-DATE CONTRIBUTIONS¹ (R$ MM) 12.5% 9.8% 11.0% 11.1% 10.6% 6,023 5,064 7,775 7,724 1,759 1,187 3,661 2,726 1M13 1M14 2M13 2M14 3M13 3M14 4M13 4M14² 1 Information based on BR GAAP; 2 Considers the preview of total contributions of April 2014 BB Seguridade Participações S.A. Investor Relations 35

36 Premium Bonds PREMIUM BONDS COLLECTION (R$ MM) COLLECTION BREAKDOWN QoQ: - 29% YoY: + 19% 1,958 1,834 1Q13 1Q14 1,093 1,383 1,303 Montlhy Montlhy Payment Payment Unique 43.7% 40.5% Unique Payment Payment 56.3% 59.5% NET INVESTMENT INCOME (R$ MM) PROFITABILITY (R$ MM) QoQ: + 40% YoY: + 812% 63.4% 63.9% 51.7% 104.0% 129.2% QoQ: + 21% YoY: + 148% Net Income (R$ MM) ROAE BB Seguridade Participações S.A. Investor Relations 36

37 Premium Bonds TECHNICAL RESERVES (R$ MM) SOLVENCY RATIO (%) QoQ: + 3% YoY: + 43% QoQ: p.p. YoY: p.p. 6,844 7,866 8,482 9,489 9, Mar/13 Jun/13 Sep/13 Dec/13 Mar/14 PORTFOLIO BREAKDOWN Mar/13 Jun/13 Sep/13 Dec/13 Mar/14 TRADING PORTFOLIO BREAKDOWN Debentures and commercial papers 12.8% Securities¹ 9.9% Others 6.6% MAR/13 MAR/14 MAR/13 MAR/14 Debentures and commercial papers 7.6% Securities¹ 5.3% Others 11.2% Inflation protected 19.7% Stock Funds 1.1% Stock Funds Inflation 1,3% protected 5,3% Pre-Fixed 38,6% Government Bonds 70.7% Government Bonds 76.0% Floating 37.8% Pre-Fixed 41.4% Floating 54,8% 1. Securities = Time deposits, Time Deposit with Special Guarantee, Real Estate Receivables Certificate, Creditory Rights, Letras Hipotecárias and Letras Financeiras BB Seguridade Participações S.A. Investor Relations 37

38 Brokerage BROKERAGE REVENUES (R$ MM) REVENUES BREAKDOWN QoQ: - 4% YoY: + 26% Brasilprev 19.7% Brasilcap 11.8% Other 1.3% 1Q13 SH1 49.1% Brasilprev 13.5% Other 0.3% Brasilcap 13.8% 1Q14 SH1 55.7% SH2 18.1% SH2 16.6% ADJUSTED NET INCOME (R$ MM) EXPENSES BREAKDOWN & NET MARGIN (%) QoQ: - 5% YoY: + 32% 49.9% 51.8% 51.2% 53.2% 52.6% Operating expenses Tax expenses Income taxes Net Margin BB Seguridade Participações S.A. Investor Relations 38

39 Market Ratios DIVIDEND YIELD P/E 2014E (R$) 20.9% % 1.2% 0.5% N/A EPS 2014E (R$) P/BV (R$) Source: Bloomberg as of May, 13,2014 BB Seguridade Participações S.A. Investor Relations 39

40 Guidance 2014 Ratio 2014 Estimates 1Q14 BB Seguridade - Adjusted ROAE¹ 44% - 49% 46.7% Premiums written growth - BB Mapfre SH1 24% - 32% 29.6% Premiums written growth - Mapfre BB SH2 19% - 26% 10.6% Collection growth - Pension Plans 33% - 47% -16.1% Collection growth - Premium Bonds 10% - 15% 19.2% ¹Adjusted ROAE calculated considering the full distribution of dividends related to the FY The adjusted equity as of 2013 would be R$ 6,125 million. BB Seguridade Participações S.A. Investor Relations 40

41 Portfolio of Products

42 Our Products SH1 Insurances Life 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. Credit Life Mortgage 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. 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. Rural 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. BB Seguridade Participações S.A. Investor Relations 42

43 Our Products SH2 Insurances P&C 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. Auto 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 collisions, besides other assistances provided to the policy holder for their daily lives. DPVAT Definition: A mandatory insurance related to accidents caused by vehicles in Brazil. Coverage: Covers personal injury caused by vehicles to passengers, drivers or pedestrians. BB Seguridade Participações S.A. Investor Relations 43

44 Our Products - BrasilPrev PGBL 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. VGBL 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) Traditional Plan Defined remuneration Guarantees a minimum yield composed of either inflation +6% or TR + 6%. ** No longer sold BB Seguridade Participações S.A. Investor Relations 44

45 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 BB Seguridade Participações S.A. Investor Relations 45

46 IR BB Seguridade Contacts Investor Relations Rua Manoel da Nóbrega, º andar São Paulo (SP) Telephone: (11) Fax: (11) BB Seguridade Participações S.A. Investor Relations 46