Institutional Presentation 1Q13

Transcription

1 Institutional Presentation

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, Property 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 * Strategic moves announced after the release of first quarter results. 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 IBR Brasil Re Brasil dental BB Corretora BB Seguridade Stake in Terms of Total Shares (%) 74,9% 50,0% 74,9% 66,7% 21,2% 74,9% 100% BB Seguridade Stake in Terms of Voting Shares (%) 49,9% 49,0% 49,9% 49,9% 20,0% 49,9% 100% Board of Directors Representation (%) 50% 50% 50% 67% 20% 50% 100% * Strategic moves announced after the release of first quarter results. Pending approval by regulators, supervisors and inspectors.

6 Corporate Governance Overview Board of Directors Presidents, Vice Presidents and Directors 18 members Companhia de Seguros Aliança do Brasil Mapfre Vida S.A Vida Seguradora S.A SH1 Life 9 appointments 9 appointments 18 members Aliança do Brasil Seguros S.A BB Mapfre Assistência Brasilveículos Mapfre Affinity Seguradora S.A Mapfre Seguros Gerais S.A SH2 P&C 9 appointments 9 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 Market Leadership Outstanding distribution capabilities... Market Share of BB Branch and BB Seguridade (%) Positioning BB s Branches Market Share: 24.1% BB Seguridade Market Share: 23.4% BB branch market share (Feb/13) BB Seguridade s overall market share¹ (04M13) 1 º 1 º 33.1% 33.8% Benefits from BB s leadership in high growth insurance markets 1 º 29.1% 2 º 15.4% Northeast (13.5% of Brazil s GDP) 3 º 1 º North (5.3% of Brazil s GDP) 24.9% 20.1% 1 º 1 º 28.2% 35.6% 1 º 1 º 24.9% 31.2% Southeast (55.4% of Brazil s GDP) Mid-West (9.3% of Brazil s GDP) South (16.5% of Brazil s GDP) Source: Company, Susep and IBGE 1. Considering market share of Life, Casualty and Auto insurance premiums and total contributions from Pension Plans and Premium Bonds 2. Brazil s GDP as of 2011 according to IBGE

8 Broker: exclusive access to BB network supported by the largest banking network in Latin America with multiple relationship channels Banking Channel 59 mm clients Non-banking channel Sound non-banking network spread all over Brazil Branches 5,394 1 º Partnerships 138 Banking Correspondents ATM 18,165 Shared External Brokers 60,220 28,380 20,000 Points of sale Source: Banco do Brasil

9 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

10 Backed by BB and Private Partnerships

11 BB Mapfre SH1 SH1 Life Life Life comprehends life insurance, personal accidents and credit-life insurance Life insurance products in Brazil are different from other modalities abroad. It is a non-accumulative product, which means that if a person does not contribute anymore, the coverage will be suspended Life insurers sell protection for events related to a person s life, such as death protection (pay a fixed amount on the death of the policyholder), living benefit products (income stream for retirement to the policyholder), personal accidents and savings-type products (insurance contracts that contain a trigger connected to a person s life) Credit-life insurance allows for the liquidation of a debt or of a number of debt installments in the event of natural or accidental death or, in some cases, depending on the product, unemployment or income reduction Mortgage Housing insurance is related to mortgage loans. In the event of the death of the insured, the insurance allows his or her family to retain the real estate and the financial institution to receive full payment of any debt owed on the property. A housing insurance policy can also protect contractors against damage to real estate

12 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 17.8% BB Seguridade: +13,5% Industry: +17,2% 17.3% 1,072.9 Premiums Market Share 4.9% 19.9 BB Seguridade: +139,7% Industry: +125,3% 5.4% 27.4 Rural (Insurance Premium) (R$ mm) Premiums Market Share BB Seguridade: +139,7% Industry: +125,3% 60.6% 64.4%

13 Mapfre BB SH2 SH2 P&C Property The products of this segment are customized to insure individuals and companies against potential losses in their property assets for example, to insure a company s machinery or facilities or an individual s house against robbery or fire Property insurance protects an entity or a person with an interest in physical property against its loss or the loss of its income capabilities Casualty insurance protects an entity or a person against legal liability for losses attributable to injury to other people or damage to the property of others Auto Auto insurance is an insurance purchased for cars, trucks, motorcycles, and other road vehicles, which is primarily used to provide financial protection against physical damage, bodily injury resulting from traffic collisions and against liability that could arise therefrom Auto (Insurance Premium) (R$ mm) Premiums % Market Share BB Seguridade: Industry: % % 1,040.0

14 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), which 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 have a greater attractiveness to the middle class due to tax advantages (people who chooses the full statement of the income tax report can deduct the contributions from the taxable income) VGBL products have a greater attractiveness to high-income customers due to their succession appeal. The succession process in Brazil is costly and time consuming. However, beneficiaries receive the resources quickly after the death of the policyholder Pension Plans (Collection) (R$ mm) Collection % Market Share BB Seguridade: Industry: % 4, % 6,088.2

15 Brasilcap Premium Bonds Premium bonds provide people with a way of saving money while also giving them the opportunity to profit from lottery premiums, in which randomly-chosen savers are awarded prize money. A below-savings-account yield in capitalization plans allows people to participate in the lotteries There are similar products in Spain and United Kingdom There are 4 different kinds of premium bonds in Brazil: traditional (the objective is to refund the contributors at the end of the term if the contributor has made timely and accurate contributions), programmed purchase (intended to facilitate the acquisition of a product or service at the end of the period, enabling the contributor to choose between the purchase or withdrawal of their savings), popular (enables the contributor to participate in the lottery, but there is no refund of the amount contributed) and incentive (a plan linked to a promotional event or a prize contingent on a behavioral or commercial event, without the refund of the entire amount paid) Premium Bonds (Collection) (R$ mm) Collection % Market Share BB Seguridade: Industry: % % 1,093.5

16 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

17 Highlights Insurance, Pension Plans and Premium Bonds Distribution Holding Business Lines SH1 Life 1 SH2 P&C 2 Pension Plans Premium Bonds Brokerage Ranking 1 st 3 nd 1 st 9 1 st 1 st 1 st Net Revenues () 5 (R$ mm) 1,112 1,647 6,083 1, Adjusted ROAE 6 () 28.4% 4.4% 53.7% 63.4% 4,460.3% 34.7% Adjusted net income () 7 (R$ mm) % of BB Seguridade adjusted net income % 2.7% 21.0% 3.7% 42.5% Source: Company fillings and Susep 1. SH1 comprises Life, 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 adjustments for extraordinary items / 7. Considers the net income attributable to BB Seguridade / 8. BB Seguridade s net income includes R$ 3.3mm related to holding revenues/expenses and taxes, which are not shown above / 9. 1 ST position: Represents BB Seguridade s collections products / 10. Considers the results of holdings BB Seguridade, BB Seguros and BB Cor.

18 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: +71.4% Net investment income: -32.2% Adjusted net income: +18.8% Underwriting result Net investment income Adjusted net income Underwriting result: +31.8% Net investment income: -78.6% Adjusted net income: -64.9% Brasilprev (R$ mm) Brasilcap (R$ mm) Result with pension plan Net investment income Adjusted net income Result with pension plans: +9.1% Net investment income: -12.4% Adjusted net income: +0.3% Result with premium bond Net investment income Adjusted net income Result with premium bond: +71.8% Net investment income: % Adjusted net income: -47.9%

19 Earnings by Segment Adjusted net income 5% 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: +5.3% ROAE (%) Net income: +53.5%

20 BB Mapfre SH1 Highlights Adjusted ROAE grew fueled by growth in earned premiums and reduction in claims. Earned premiums (R$ mm) Claims (%) % p.p Combined ratio (%) Adjusted ROAE (%) p.p

21 BB Mapfre SH1 Highlights Banking channel sustains the growth of premiums written, in line with the business plan of the company. Premiums written (R$ mm) +19.0% 1, Breakdown of premiums vs DPVAT Housing Rural 7.0% 7.9% 2.2% x Rural DPVAT Housing 5.7% 2.4% 15.7% 82.9% Life 76.2% Life * Based on SUSEP GAAP Others Channels Selling channels 24.4% Others Channels Selling channels 20.0% 75.6% Banking Channel 80.0% Banking Channel

22 Mapfre BB SH2 Highlights ROAE impacted by the financial result, but the growth in premiums earned and drop lower loss ratio show favorable operating performance. Premiums earned (R$ mm) Claims (%) 1, % 1, p.p Combined ratio (%) Adjusted ROAE (%) p.p

23 Mapfre BB SH2 Highlights Performance in auto insurance sustains the growth in premiums written, with the banking channel showing the highest growth. Premiums written (R$ mm) +22.9% 1, ,340.4 Breakdown of premiums vs Affinity DPVAT DPVAT Affinity 9.8% Auto 8.2% Auto 4.5% 4.9% 34.3% 51.4% x 30.3% 56.7% Casualties Casualties * Based on SUSEP GAAP Selling channels 30.5% Banking Channel Selling channels 34.4% Banking Channel Others Channels 69.5% Others Channels 65.6%

24 Brasilprev Highlights Brasilprev reaches 43% of net total net inflow in the market, which has been supporting the growth of reserves. Gross revenue from pension plans (R$ mm) Adjusted ROAE (%) 4, % 6, Net Inflow of Contributions (R$ mm) Technical Reserves (R$ bn) Net Inflow of Contributions Market Share 41.2% 43.5% % , ,555.9 * Based on SUSEP GAAP. Net Inflow of Contributions = Collection - Redemptions Mar/12 Mar/13

25 Brasilcap Highlights Growth in revenue and net inflow, with increased market share in reserves and collections. Premium Bonds Collection (R$ mm) Adjusted ROAE (%) % 1, Net Inflow of Contributions (R$ mm) Technical Reserves (R$ bn) Net Inflow of Contributions Market Share 29.1% +29.9% % * Based on SUSEP GAAP. Net Inflow of Contributions = Collection - Redemptions Mar/12 Mar/13

26 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 1T % Brasilcap Other 14.4% SH1 1.5% 16.8% 46.2% x Brasilcap Other 11.8% 1.3% 19.7% 49.1% SH1 Brasilprev 21.1% Brasilprev 18.1% SH2 SH2 Adjusted Net Income (R$ mm) Performance (R$ mm) % Brokerage Revenues Operating Result Adjusted Net Income Net Margin 49.3% 49.9%

27 Contacts: Investor Relations SBS Quadra 1 Bloco A Ed. Sede I 15º andar Brasília, DF Tel: +55 (61) Fax: +55 (61) bbseguridade.ri@bb.com.br Apresentação Institucional Março 2013