Institutional Presentation June 13

Transcription

1 Institutional Presentation June 13

2 BB Seguridade Largest Insurance, Pension and Premium Bonds Company in Latin America Fast Growing with High Profitability Largest Insurance Broker in Latin America Largest Life Insurance Company in Brazil 2nd Largest P&C Insurance Company in Brazil Leading Presence in Other Segments, such as Premium Bonds and Rural Insurance Insurance Operations, Pension Plans and Premium Bonds Managed Through Private Partnerships with Global Leaders

3 Successful Track Record 2013* IPO BB Seguridade Equity investment in IRB Brasil RE 2012 Creation of BB Seguridade Brasildental Partnership with Odontoprev Established Joint Venture with Mapfre 1981 Creation 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 Creation 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 * Pending approval by regulators, supervisors and inspectors.

4 Organizational Structure Shareholders General Meeting Fiscal Council Board of Directors Audit Commitee Executive Officers CEO Marcelo Augusto Dutra Labuto Finance and Investor Relations Directorship Leonardo Giuberti Mattedi Commercialization Directorship André Luis Cortes Mussili Products & Communication Directorship Ângela Beatriz de Assis

5 Shareholders Structure Free-Float 33,75% 66,25% 100% Total 100% Total BB Seguros BB Corretora Holdings BB Mapfre SH1 Mapfre BB SH2 Brasilprev Brasilcap IRB Brasil Re 1 Brasil dental BB Corretora BB Seguridade Stake in Terms of Total Shares (%) 74,9% 50,0% 74,9% 66,7% 20,5% 74,9% 100% BB Seguridade Stake in Terms of Voting Shares (%) 49,9% 49,0% 49,9% 49,9% 20,5% 49,9% 100% Board of Directors Representation (%) 50% 50% 50% 67% 20% 50% 100% 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.

6 Corporate Governance Overview Board of Directors Presidents, Vice Presidents and Directors 16 members Companhia de Seguros Aliança do Brasil Mapfre Vida S.A Vida Seguradora S.A SH1 Life 8 appointments 8 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 2 appointments 2 appointments Brasilprev Pension Plans 16 members 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 Source: BB Seguridade and Banco do Brasil

7 Broker: exclusive access to BB network supported by the largest banking network in Latin America with multiple relationship channels Banking Channel 1 Non-banking channel mm clients Sound non-banking network spread all over Brazil Branches 5,401 1 º Partnerships 148 Correspondents ATM 18,218 Shared External Brokers 60,049 28, Points of sale Source: Banco do Brasil june Source: Grupo BB Mapfre june 2013

8 Broker: exclusive access to BB network SH1 SH2 Brasilprev Brasilcap 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 Related Parties Transaction Policy 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

9 Backed by BB and Private Partnerships

10 BB Mapfre SH1 SH1 Life Life Life comprehends life insurance, personal accidents and credit-life insurance. Life insurance is a product focused on individual aiming at assuring financial protection to the beneficiaries chosen by the policy holder, in case of natural or accidental death, or permanent disability of the individual. Credit life insurance (life insurance linked to loans) is intended to ensure the payment of a debt in the event of death, permanent disability or unemployment of the borrower, preventing family member to inherit this liability. BB Seguridade products mainly cover the risks of death and disability. Mortgage Housing insurance is related to the payment of housings. In case of death or disability of the insured, the insurance policy gives the guarantee that his family will receive the property and the bank will receive the full payment of the property debt. A housing insurance can also protect against physical damage to the insured property.

11 BB Mapfre SH1 SH1 Life Rural Insurance 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. Life (Insurance Premium) (R$ mm) Housing (Insurance Premium) (R$ mm) Premiums Market Share BB Seguridade: +31.2% Industry: +24.0% Premiums Market Share BB Seguridade: % Industry: +23.9% 20.6% 21.8% 6.6% 1, , % Rural (Insurance Premium) (R$ mm) Premiums Market Share BB Seguridade: +60.9% Industry: +58.3% 77.8% % Source: SUSEP Data: Jun/13

12 Mapfre BB SH2 SH2 P&C Property Property insurance consists in products developed to protect assets or property from individuals or companies, linked or not to loans. The main products of this segment are housing insurance (covers the risk related to the property, and not to the individual, as it is the case for mortgage life or housing life insurance), businesses insurance (protection for companies assets) and insurance for machines and equipment (protection of goods belonging to individuals and businesses). Auto Auto insurance is a product aimed at protecting vehicles, for commercial or private use, from damage sustained and caused in accidents or other situations, besides other assistances provided to the policy holder for their daily lives. Auto (Insurance Premium) (R$ mm) Premiums % Market Share BB Seguridade: Industry: % % 1,102.5 Source: SUSEP Data: Jun/13

13 Brasilprev Pension Plans 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). They 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 are recommended for people who declare income tax (IR) in complete form because the contributions are deductible in the calculation bases of income tax. VGBL products are recommended for those who declares income tax in simplified format or is exempt, since the contributions are not deductible in calculating the tax base. In this modality, in case of redemption or income received, the incidence of IR is only on the value of income. Pension Plans (Collection) (R$ mm) Collection % Market Share BB Seguridade: Industry: % 4, % 5,949.3 Source: SUSEP Data: Jun/13

14 Brasilcap Premium Bonds Premium bonds is a typical product of the Brazilian market, which links into a single financial instrument components of accumulation (savings) and lottery. Customers can choose between bonds single payment or perform monthly payments. In both cases, during the period, savers participate in draws with cash prizes. Part of the payments is directed to the company to pay, for example, the cost of the plan and the prizes with draws. The remaining amount compose a reservation that the participant gets back to the end of the plan. There are similar products in Spain and United Kingdom. Premium Bonds (Collection) (R$ mm) Collection % Market Share BB Seguridade: Industry: % % 1,958.4 Source: SUSEP Data: Jun/13

15 BB Corretora Brokerage 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. Commercialization of BB Seguridade s products in BB s retail banking base Commercialization process Gross premium SH1 SH2 BB s client Reimbursement of costs / expenses BB Corretora Brokerage Brasilprev Banking service fees Brasilcap

16 Highlights Insurance, Pension Plans and Premium Bonds Distribution Holding Business Lines SH1 Life 1 SH2 P&C 2 Pension Plans Premium Bonds Brokerage Ranking 10 1 st 3 nd 1 st 8 1 st 1 st 1 st Net Revenues () 5 (R$ mm) 1,783 1,828 5,895 1, Adjusted ROAE () 27.7% 13.2% 59.0% 63.9% 39.1% Adjusted net income () 6 (R$ mm) % of BB Seguridade adjusted net income % 7.2% 19.7% 3.4% 42.1% Source: Company fillings and Susep 1. SH1 comprises Life, Credit Insurance, Housing and Rural Insurance / 2. SH2 comprises Auto, Casualty and Others (except for Housing and Rural Insurance) / 3. 1 ST position: Represents BB Seguridade s Life products / 4. 2 nd 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 the net income attributable to BB Seguridade / 7. BB Seguridade s net income includes R$ 3.7mm related to holding revenues/expenses and taxes, which are not shown above / 8. 1 ST position: Represents BB Seguridade s collections products / 9. Considers the results of holdings BB Seguridade, BB Seguros and BB Cor / 10. Position in 1H13 16

17 Earnings by Segment Income from insurance, pension plans and premium bonds grows in all affiliates. Financial result impacted by mark-to-market. BB Mapfre SH1 (R$ mm) Mapfre BB SH2 (R$ mm) Underwriting result Net investment income Adjusted net income Underwriting result: +19.1% Net investment income: -22.1% Adjusted net income: +26.3% Underwriting result Net investment income Adjusted net income Underwriting result: % Net investment income: -48.5% Adjusted net income: +53.8% Brasilprev (R$ mm) Brasilcap (R$ mm) Result with pension plan Net investment income Adjusted net income Result with pension plans: +56.7% Net investment income: -19.3% Adjusted net income: +24.7% Result with premium bond Net investment income Adjusted net income Result with premium bond: % Net investment income: % Adjusted net income: -21.9%

18 Consolidated Earnings Adjusted net income 31% higher even in an adverse environment for financial income BB Seguridade Adjusted (R$ mm) BB Seguridade (R$ mm) Adjusted net income Net income ROAE (%) Adjusted net income: +31.4% ROAE (%) Net income: +84.9%

19 BB Mapfre SH1 Highlights Adjusted ROAE grew fueled by growth in earned premiums. Earned premiums (R$ mm) Claims (%) % 1, p.p Combined ratio (%) Adjusted ROAE (%) p.p p.p

20 BB Mapfre SH1 Highlights Banking channel sustains the growth of premiums written. Highlight for credit insurance and rural in premium s composition. Premiums written (R$ mm) +44.7% 1, ,232.4 Breakdown of premiums vs Mortagage life insurance Rural Others 1.4% 3.3% 20.8% 44.7% Mortgage life insurance Others Life x Rural 2.0% 2.8% 23.8% 37.3% Life 29.8% Credit insurance 34.2% Credit insurance Other channel Selling channels 15.3% Other channel Selling channels 11.4% 84.7% Bancassurance channel 88.6% Bancassurance channel

21 Mapfre BB SH2 Highlights ROAE showed an increase impacted by the growth in earned premiums and improved combined ratio. Premiums earned (R$ mm) Claims (%) 1, % 1, p.p Combined ratio (%) Adjusted ROAE (%) p.p p.p

22 Mapfre BB SH2 Highlights Performance in P&C maintains the growth of premiums written. Premiums written (R$ mm) +17.7% 1, ,553.0 Breakdown of premiums vs Others Affinity 14.4% 1.2% 27.3% 57.2% Others Affinity 1.1% Auto 12.5% x 27.5% 58.9% Casualties Casualties Auto Selling channels Bancassurance channel Selling channels Bancassurance channel 34.6% 34.9% Other channel 65.4% Other channel 65.1%

23 Brasilprev Highlights Brasilprev reaches 53% of net total net inflow in the market, which has been supporting the growth of reserves 1. Gross revenue from pension plans (R$ mm) Adjusted ROAE (%) 4, % 5, p.p Net Inflow of Contributions (R$ mm) Technical Reserves (R$ bn) Net Inflow of Contributions Market Share 37.9% 53.0% % , ,566.1 jun-12 jun-13 1 Source: Consultoria Quantum Axis

24 Brasilcap Highlights Strong revenue growth, with an increase of reserves. A smaller net investment income and retained earnings limited the expansion of ROAE. Premium Bonds Collection (R$ mm) Adjusted ROAE (%) % 1, p.p Technical Reserves (R$ bn) +42.8% jun-12 jun-13

25 BB Corretora Highlights Benefits from the predominance of sales through the banking channel, increase of commission income and net margin. Brokerage Revenues (R$ mm) Revenues Breakdown vs 2T % Other Brasilcap 5.3% 12.5% SH1 45.6% Brasilprev 17.5% x Other Brasilcap 0.2% 20.1% 46.8% 16.1% SH1 19.1% Brasilprev 16.8% SH2 SH2 Adjusted Net Income (R$ mm) Performance (R$ mm) % Brokerage Revenues Operating Result Adjusted Net Income Net Margin 47.1% 51.8%

26 Contacts: Investor Relations SBS Quadra 1 Bloco A Ed. Sede I 4º andar Brasília, DF Tel: +55 (61) ri@bbseg.com.br Apresentação Institucional Março 2013