Institutional Presentation June 2014

Transcription

1 Institutional Presentation June 2014 BBSEY ADR - Level I

2 Overview

3 Track Estrutura Record Acionária - Parcerias IPO Equity Establishment of ADR Level I 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 2012 Establishiment of BB Seguridade investment in IRB Brasil RE Brasildental¹ Partnership with Odontoprev ¹ - Company in preoperational stage. BB Seguridade Participações S.A. Investor Relations 3

4 Ownership Estrutura Structure Acionária - Parcerias 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 Volting Stake (%) 49.9% 49.0% 49.9% 49.9% 20.5% 49.9% 100% Board of Directors Representation (%) 50% 50% 50% 67% 20% 50% Company in preoperational stage 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 JUN/14 FREE-FLOAT BREAKDOWN JUN/14 Individuals 5.0% Free-float 33.8% Institutional 28.7% Banco do Brasil 66.3% Foreign Investors 66.3% BB Seguridade Participações S.A. Investor Relations 6

7 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: Elected among the active employees of Banco do Brasil Related-party Comittee Three members: One is the independent member appointed by the minority shareholders The independent member has veto power Stocks Only common shares 100% tag along 80% payout (semi annual dividends) BB Seguridade Participações S.A. Investor Relations 7

8 Corporate Governance Affiliates SH1 Life Board of Directors 16 members 8 appointments 8 appointments Companhia de Seguros Aliança do Brasil 6 appointments 6 appointments Mapfre Vida S.A 6 appointments 6 appointments Board of Executive Officers 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 4 members 3 members Brasildental Dental Insurance 2 appointments 2 appointments 1 appointment 1 appointment Consesus 1 appointment 10 members IRB-RE Resseguro 2 appointments BB Seguridade Participações S.A. Investor Relations 8

9 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 9

10 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 10

11 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 61,5 Million clients 5,490 Branches 64,629 ATMs 15,270 Banking Correspondents 1 º 34,080 Points of service in shared network Low capital needs Non-banking Channel 117 Partnerships (Affinity) Captive access to larger distribution network in Latin America 21,083 External Brokers BB Seguridade Participações S.A. Investor Relations 11

12 Performance

13 BB Seguridade at a Glance One of the Largest Insurance, Pension and Premium Bonds Companies in Latin America R$ 8.0 billion in premiums written, R$ 14.4 billion in pension contributions and R$ 3.3 billion in premium bonds in 1H14 Fast Growing with High Profitability 19% yoy premiums and contributions growth with 53.3%¹ ROAE in 1H14 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 Over 2.4 million insured vehicles and R$ 4.3 billion in premiums written in 6M14 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 123 employees at the holding and broker level 7,371 employees at the affiliates level 1. Adjusted ROAE, considering the total distribution of dividends BB Seguridade Participações S.A. Investor Relations 13

14 BB Seguridade Performance PREMIUMS, CONTRIBUTIONS AND COLLECTIONS¹ (R$ MM) BREAKDOWN OF PREMUMS, CONTRIBUTIONS AND COLLECTIONS¹ 25.3% 22.2% 26.1% 23.5% 30.4% 25.3% 27.3% 1H13 1H14 QoQ: + 58 % YoY: + 37 % 11,465 8,720 12,996 9,954 15, % 21,633 25,661 Brasilcap 14.5% Brasilprev 54.9% SH1 13.7% SH2 16.9% Brasilcap 12.7% Brasilprev 56.2% SH1 14.4% SH2 16.7% Revenues Market share PROFITABILITY EARNINGS BREAKDOWN 43.7% 42.6% 55.8% 49.0% 64.9% 38.1% 53.3% Others 0.7% 1H13 Others 3.7% 1H14 QoQ: + 30 % YoY: + 54% +49% 1,494 SH1 28.0% SH1 28.3% ,005 BB Corretora 42.3% Brasilcap Brasilcap 3.6% 6.8% Adjusted net income (R$ MM) ROAE Adjusted 1 Premiums written, pension plans contributions and premium bonds collections BB Seguridade Participações S.A. Investor Relations 14 Brasilprev 20.3% SH2 5.2% BB Corretora 39.8% Brasilprev 17.0% SH2 4.4%

15 BB Mapfre SH1¹ RETAINED PREMIUMS (MM) BREAKDOWN OF RETAINED PREMIUMS QoQ: + 31 % YoY: + 16 % 2, % 3,325 Credit Life 32.4% Mortgage Life 2.1% 1H13 Rural 14.5% Other 4.2% Mortgage Life 2.1% Rural 20.1% 1H14 Other 4.8% 1,624 1,349 1,596 1,440 1,885 Credit Life 31.2% Life 46.8% Life 41.8% CHANGES IN TECHNICAL RESERVES (R$ MM) EARNED PREMIUM (R$ MM) QoQ: + 310% YoY: - 5% - 7% QoQ: + 4% YoY: + 26% +30% ,070 2, ,087 1,116 1,097 1,315 1, Net of ceded reinsurance BB Seguridade Participações S.A. Investor Relations 15

16 BB Mapfre SH1 Adjusted Ratios¹ LOSS RATIO (%) COMISSION RATIO (%) QoQ: p.p. YoY: p.p. QoQ: p.p p.p. YoY: p.p p.p G&A RATIO (%) COMBINED RATIO (%) QoQ: p.p. YoY: p.p. QoQ: p.p p.p. YoY: p.p 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 16

17 BB Mapfre SH1 NET INVESTMENT INCOME (R$ MM) PROFITABILITY QoQ: + 5% YoY: + 92% % % 33.1% QoQ: + 46% YoY: + 71% % % % % +51% % 567 Adjusted Net Income (R$ MM) ROAE ASSETS UNDER MANAGEMENT BREAKDOWN 1 Inflation Protected 6.3% JUN/13 Others² 11.5% Pre-Fixed 9.6% Inflation Protected 11.4% JUN/14 Others² 17.0% Pre-Fixed 5.1% Floating 72.6% Floating 66.5% 1. Mark-to-market; 2- Agrarian debt bonds, DPVAT, Investment funds BB Seguridade Participações S.A. Investor Relations 17

18 Mapfre BB SH2¹ RETAINED PREMIUMS (R$ MM) BREAKDOWN OF RETAINED PREMIUMS QoQ: + 8% YoY: + 9% 3,417 +7% 3,659 Other 14.9% 1H13 Other 15.4% 1H14 1,740 1,767 1,725 1,762 1,898 Casualties 22.2% Vehicles 62.9% Casualties 22.2% Vehicles 62.4% CHANGE IN TECHNICAL RESERVES (R$ MM) EARNED PREMIUM (R$ MM) YoY: 129% -30% QoQ: - 2% YoY: + 4% 3,237 +9% 3, ,674 1,670 1,718 1,787 1, Net of ceded reinsurance BB Seguridade Participações S.A. Investor Relations 18

19 Mapfre BB SH2 Adjusted Ratios¹ LOSS RATIO (%) COMISSION RATIO (%) QoQ: p.p. YoY: p.p. QoQ: p.p p.p. YoY: p.p p.p G & A RATIO (%) COMBINED RATIO (%) QoQ: p.p. YoY: p.p p.p. QoQ: p.p. YoY: p.p 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 19

20 Mapfre BB SH2 NET INVESTMENT INCOME (R$ MM) PROFITABILITY (R$ MM) QoQ: + 27% YoY: + 287% +187% % 6.2% 8.5% 12.6% 6.5% 8.5% 9.4% QoQ: - 46% YoY: - 42% +27% Adjusted Net Income (R$ MM) ROAE ASSETS UNDER MANAGEMENT BREAKDOWN 1 Inflation Protected 13.8% JUN/13 Inflation Protected 4.4% JUN/14 Others² 33.8% Others² 36.0% Floating 38.0% Floating 53.5% Pre-Fixed 14.4% Pre-Fixed 6.1% 1. Mark-to-market ; 2- Agrarian debt bonds, DPVAT, Investment funds BB Seguridade Participações S.A. Investor Relations 20

21 Pension Plans CONTRIBUTIONS & NET INFLOW (R$ BI) BREAKDOWN OF CONTRIBUTIONS 11.0% 12.5% 11.1% 10.6% 8.9% 10.4% 9.7% Traditional¹ 1.3% 1H13 Traditional¹ 1.6% PGBL 7.0% 1H PGBL 9.4% VGBL 89.3% VGBL 91.4% MANAGEMENT FEE (R$ MM) 1. Defined remuneration plan PROFITABILITY (R$ MM) QoQ: +7% YoY: +13% +14% 59.0% 58.4% 58.0% 59.9% 54.5% 52.4% 51.1% QoQ: - 5% YoY: + 15% % Adjusted Net Income (R$ MM) ROAE BB Seguridade Participações S.A. Investor Relations 21

22 Pension Plans RESERVES (R$ BI) RESERVES BREAKDOWN QoQ: + 11% YoY: + 30% JUN/13 JUN/14 Traditional¹ Traditional¹ 10.2% PGBL PGBL 8.6% 22.3% 25.4% VGBL 64.5% VGBL 69.1% Jun/13 Sep/13 Dec/13 Mar/14 Jun/14 TRADITIONAL PLANS PORTFOLIO 1. Defined remuneration plan ASSETS UNDER MANAGEMENT BREAKDOWN Pre-Fixed 5.8% Floating 5.7% JUN/13 JUN/14 JUN/13 JUN/14 Pre-Fixed 6.2% Floating 6.3% Debentures and commercial papers 9.0% Stocks 2.8% Debentures and commercial papers 6.9% Stocks 1.9% Securities² 12.7% Securities² 15.6% Inflation Protected 88.6% Inflation Protected 87.6% Government Bonds 75.5% Government Bonds 75.7% 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 22

23 Premium Bonds PREMIUM BONDS COLLECTION (R$ MM) COLLECTION BREAKDOWN QoQ: + 50 % YoY: % 3,052 +7% 3,263 1H13 1H14 1,958 1,383 1,834 1,303 1,960 Montlhy Payment 31.1% Unique Payment 68.9% Montlhy Payment 37.5% Unique Payment 62.5% NET INVESTMENT INCOME (R$ MM) PROFITABILITY (R$ MM) QoQ: + 50% % 51.7% 104.0% 129.2% 171.0% 58.1% 118.9% 100 QoQ: + 42% YoY: + 215% +183% Net Income (R$ MM) ROAE BB Seguridade Participações S.A. Investor Relations 23

24 Premium Bonds TECHNICAL RESERVES (MM) PORTFOLIO BREAKDOWN QoQ: + 6 % YoY: + 32 % 7,866 8,482 9,489 9,810 10,359 Debentures and commercial papers 10.9% Securities¹ 7.5% Others 5.0% JUN/13 Debentures and commercial papers 6.6% Securities¹ 8.1% Others 15.3% JUN/14 Government Bonds 76.6% Government Bonds 69.9% Jun/13 Sep/13 Dec/13 Mar/14 Jun/14 TRADING PORTFOLIO BREAKDOWN 1. Securities = Time deposits, Time Deposit with Special Guarantee, Real Estate Receivables Certificate, Creditory Rights, Letras Hipotecárias and Letras Financeiras Inflation protected 6.1% Stock Funds 1.1% JUN/13 Inflation Stock Funds protected 1.2% 0.2% JUN/14 Pre-Fixed 32.9% Floating 44.9% Pre-Fixed 48.0% Floating 65.7% BB Seguridade Participações S.A. Investor Relations 24

25 Brokerage BROKERAGE REVENUES (R$ MM) REVENUES BREAKDOWN QoQ: + 25 % YoY: + 36 % % 1,098 Brasilprev 17.8% Brasilcap 16.2% SH2 17.4% Other 0.7% 1H13 SH1 47.8% Brasilprev 16.7% Brasilcap 16.1% SH2 14.7% Other 0.2% 1H14 SH1 52.2% ADJUSTED NET INCOME (R$ MM) EXPENSES BREAKDOWN & NET MARGIN (%) QoQ: + 33% YoY: + 48% +41% % 51.2% 53.2% 52.6% QoQ: p.p. YoY: p.p. 56.1% 50.9% 54.5% p.p Operating expenses Tax expenses Income taxes Net Margin BB Seguridade Participações S.A. Investor Relations 25

26 Guidance 2014 Ratio 2014 Estimates 1H14 BB Seguridade - Adjusted ROAE¹ 44% - 49% 53.3% Premiums written growth - BB Mapfre SH1 24% - 32% 24.1% Premiums written growth - Mapfre BB SH2 19% - 26% 16.8% Collection growth - Pension Plans 33% - 47% 20.8% Collection growth - Premium Bonds 10% - 15% 6.9% ¹Adjusted ROAE calculated by deducting the total distribution of dividends. BB Seguridade Participações S.A. Investor Relations 26

27 Deliverables Focus on maximizing impact and reach of product offerings Health Insurance Distribution Health New Products Insurance Dental insurance Reinsurance Health Insurance Ex: Travel, micro-insurance and warranty Brasil dental Joint-venture with Odontoprev, created for dental insurance operation 74,99% of Total Equity 20-year term Acquisition of 20,5% of IRB s common shares Joining the control group Focus solely on distribution Not part of Banco do Brasil s current portfolio 1 st bank to receive SUSEP s authorization to sell micro-insurance Potential to develop new products Introduction of products already tested by partners in other markets Attractive and high growth sector High ROAE with low risk Low penetration of dental plans High Cash flow Entry in an underpenetrated segment Strategic partnership with an experienced player Infrastructure focused (PAC, World Cup and Olympics are likely to increase demand) Low penetration of health beneficiaries High ROAE with no underwriting risk Opportunity to distribute partners products in the banking channel BB Seguridade Participações S.A. Investor Relations 27

28 Portfolio of Products

29 Our Products SH1 Insurances Life Definition: term life insurance which provides coverage at a fixed rate of payments for a limited period, 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 Definition: insurance that guarantee the payment of loans. Coverage: in case of death or permanent disability the client or his beneficiary will have his insured loan paid. Definition: insurance related to mortgage prepayment. Housing Rural Coverage: in case of death or permanent disability the remaining balance of debt will be paid. This product can also protects the insured from damage to the property. Definition: insurance that protects farmers from weather hazards, falling in the market prices of the crop. Can also protects his property and be used as a guarantee for rural loans. Coverage: in the event of any claim the coverage is limited to the insured amount hired. BB Seguridade Participações S.A. Investor Relations 29

30 Our Products SH2 Insurances Definition: insurance that protects the property of individuals and companies. P&C Coverage: the main coverage are for damages to the home of individuals, the assets of companies such as machinery and other properties, and third party liability. Auto Definition: insurance to protect vehicles from damage sustained and caused in accidents or other situations. Coverage: accidental damage or theft of the vehicle, compensation for damage or injury caused to third parties and passengers of the vehicle, and assistance in the event of an accident or crash. DPVAT Definition: A mandatory insurance related to vehicles accident in Brazil. Coverage: Covers personal injury caused by vehicles to passengers, drivers or pedestrians. BB Seguridade Participações S.A. Investor Relations 30

31 Our Products - BrasilPrev PGBL For people who declare income taxes (IR) in the complete form because the contributions are deductible. VGBL For people who declare income taxes in the simplified format or is exempt. Focus on sucession 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 Guarantee fixed interest rates relative to inflation. ** No longer sold BB Seguridade Participações S.A. Investor Relations 31

32 Our Products - BrasilCap Unique Payment It is a saving bond which has the aim of be an alternative form to accumulate reserves, with maturity and interest rates previously determined. Monthly Payment The bond holder also has the chance to apply for an award by 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 32