Institutional Presentation Institutional Presentation

Transcription

1 Institutional Presentation 2014 Institutional Presentation

2 Overview

3 Track Record 2013 IPO BB Seguridade Equity investment in IRB Brasil RE Established Joint Venture with Mapfre Creation of BB Seguridade Brasildental* Partnership with Odontoprev 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 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 Mapfre BB SH2 Brasilprev Brasilcap IRB Brasil Re Brasil dental BB Corretora 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 (%) 50.0% 50.0% 50.0% 67.0% 20.0% 50.0% Awaiting approval by ANS (Agência Nacional de Saúde Suplementar) Position until 12/31/2013 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 DEC/13 FREE-FLOAT BREAKDOWN DEC/13 Individuals 6.0% Free-float 33.8% Institutional 32.6% Banco do Brasil 66.3% Foreign 61.4% 80% payout Semi-annual dividends BB Seguridade Participações S.A. Investor Relations 6

7 Corporate Governance Stocks Only common shares 100% tag along 80% payout Board of directors Six members The President of the Company One member appointed by the minority shareholders Two members appointed by Banco do Brasil from its Executive Board One member appointed by the Ministry of Planning, Budget and Management and the other by the Ministry of Finance Board of executive officers Four members Elected among the active employees of Banco do Brasil Related-party committee Three members One is the independent member appointed by the minority shareholders The independent member has veto power BB Seguridade Participações S.A. Investor Relations 7

8 Corporate Governance Affiliates Board of Directors Presidents, Vice Presidents and Directors 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 8 appointments 3 appointments Brasilprev Pension Plans 8 appointments 3 appointments 12 members Brasilcap Premium Bonds 8 appointments 2 appointments 2 appointments 4 appointments 3 members Broker 3 appointments 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 on 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 own brokerage, getting advantage of the captive access to Banco do Brasil distribution network. Own Brokerage Distribution Channel Low complexity business model No underwriting risk Bank Channel 61.4 Million of clients Branches ATMs Banking Correspondents Shared network 1 º Low capital need Captive access to larger distribution network in Latin America Non-banking Channel 140 Partnerships (Affinity) 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$ 14 billion in premiums written, R$ 23 billion in pension contributions and R$ 6.3 bi in premium bonds in 2013 Fast Growing with High Profitability 30% yoy premium and contribution growth with 38.4% (1) ROAE in 2013 Largest Insurance Broker in Latin America Exclusive access to Banco do Brasil s unique distribution network, with brokerage revenues of R$ 1.8 bi in nd Largest P&C Insurance Company in Brazil Over 2.4 million insured vehicles and R$ 7.8 billion in premiums written in 2013 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 122 employees at the holding and broker level. 7,352 employees at the affiliates level 1. Adjusted ROAE, considering the distribution of dividends BB Seguridade Participações S.A. Investor Relations 13

14 BB SEGURIDADE MARKET SHARE LIFE RURAL 20.1% 55.4% 70.8% 14.5% TOTAL REVENUES* % 24.3% PENSION PLANS (PROVISION) PREMIUM BONDS (PROVISION) 20.7% 22.6% % 34.4% *Combined market share considering premiuns written (except health), collection of pension plans and premium bonds 2013: Market Share position until November 2013 BB Seguridade Participações S.A. Investor Relations 14

15 BB Seguridade Performance TOTAL REVENUES (R$ MM) REVENUES BREAKDOWN QoQ: + 49% YoY: + 32% 33, % 43,349 Brasilcap 11.6% SH1 14.0% Brasilcap 14.5% SH1 14.4% SH2 20.0% SH2 18.0% 9,865 10,168 11,465 8,720 12,996 Brasilprev 54.4% Brasilprev 53.2% PROFITABILITY EARNINGS BREAKDOWN 36.9% 34.7% 39.1% 38.0% 49.7% QoQ: + 29% YoY: + 50% % 35.9% 1, % 2,260 Adjusted net income (R$ mm) ROAE BB Corretora 37.7% BB Seguridade Participações S.A. Investor Relations 15 Brasilcap 6.4% Others 0.8% Brasilprev 20.9% SH1 27.7% SH2 6.5% BB Corretora 40.4% Brasilcap 3.9% IRB 1.3% Others 0.3% Brasilprev 19.6% SH1 30.1% SH2 4.4%

16 BB Mapfre SH1 PREMIUMS WRITTEN (R$ MM) BREAKDOWN OF PREMIUMS WRITTEN QoQ: + 14% YoY: + 32% 4, % 6,244 Credit Life 29.7% Mortgage Life 1.7% Rural 17.6% Other 3.7% Mortgage Life 2.5% Rural 23.0% Other 3.1% 1,321 1,201 1,783 1,521 1,739 Life 47.4% Credit Life 28.4% Life 43.0% CHANGES IN TECHNICAL RESERVES (R$ MM) EARNED PREMIUM (R$ MM) QoQ: + 92% YoY: + 44% + 53% 1,551 QoQ: - 3% YoY: + 27% + 28% 4,694 1,015 3, ,055 1,173 1,249 1,216 BB Seguridade Participações S.A. Investor Relations 16

17 BB Mapfre SH1 Adjusted Ratios CLAIMS (%) COMMISSION RATIO (%) QoQ: p.p. YoY: p.p p.p QoQ: 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 BB Seguridade Participações S.A. Investor Relations 17

18 BB Mapfre SH1 NET INVESTMENT INCOME (R$ MM) PROFITABILITY QoQ: + 3% YoY: + 29% % % 23.4% 27.7% 33.1% 48.2% 20.0% 29.6% QoQ: + 41% YoY: + 80% % 907 Adjusted Net Income (R$ MM) ROAE ASSETS UNDER MANAGEMENT BREAKDOWN 1 Linked to inflation 9.1% Others 10.9% Pre-Fixed 8.2% DEC/12 Linked to inflation 10.4% Others 23.3% DEC/13 Pre-Fixed 9.7% Interbank Deposit 71.8% Interbank Deposit 56.7% 1. Mark-to-market BB Seguridade Participações S.A. Investor Relations 18

19 Mapfre BB SH2 PREMIUMS WRITTEN (R$ MM) BREAKDOWN OF PREMIUMS WRITTEN QoQ: - 5% YoY: + 19% + 17% 6,649 7,794 Other 14.4% Other 12.6% 1,681 1,836 1,828 2,122 2,008 Casualties 30.3% Vehicles 55.3% Casualties 31.0% Vehicles 56.4% CHANGE IN TECHNICAL RESERVES (R$ MM) EARNED PREMIUM (R$ MM) QoQ: - 77% YoY: + 5% % QoQ: + 1% YoY: + 20% 6, % 7, ,641 1,722 1,806 1,938 1,965 BB Seguridade Participações S.A. Investor Relations 19

20 Mapfre BB SH2 Adjusted Ratios CLAIMS (%) COMMISSION RATIO (%) QoQ: -5.5 p.p. YoY: p.p p.p. QoQ: 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 BB Seguridade Participações S.A. Investor Relations 20

21 Mapfre BB SH2 NET INVESTMENT INCOME (R$ MM) PROFITABILITY (R$ MM) QoQ: + 28% YoY: + 3% % 8.0% 4.0% 13.2% 6.2% 8.5% 9.7% - 13% 7.5% 216 QoQ: + 42% YoY: + 15% ASSETS UNDER MANAGEMENT BREAKDOWN 1 Adjusted Net Income (R$ MM) ROAE Linked to inflation 15.0% DEC/12 Linked to inflation 5.2% DEC/13 Others 29.1% Interbank Deposit 44.9% Pre-Fixed 11.0% Interbank Deposit 49.7% Pre-Fixed 11.7% Others 33.3% 1. Mark-to-market BB Seguridade Participações S.A. Investor Relations 21

22 Pension Plans PREMIUM CONTRIBUTION (R$ MM) BREAKDOWN OF CONTRIBUTION QoQ: + 101% YoY: + 29% 18, % 23,041 Traditional 1.7% PGBL 13.3% Traditional 1.8% PGBL 10.8% 5,762 6,038 5,895 3,694 7,414 VGBL 85.0% VGBL 87.4% MANAGEMENT FEE (R$ MM) PROFITABILITY (R$ MM) QoQ: 0% YoY: + 20% + 23% 60.5% 53.8% 59.0% 58.4% 58.0% 47.1% 46.3% 838 1,031 QoQ: + 9% YoY: + 27% + 24% BB Seguridade Participações S.A. Investor Relations Adjusted Net Income (R$ MM) ROAE 22

23 Pension Plans RESERVES (R$ MM) RESERVES BREAKDOWN QoQ: + 8% YoY: + 24% 67,347 71,937 75,237 77,616 83,543 Traditional 11.0% DEC/12 PGBL 28.0% Traditional 9.7% DEC/13 PGBL 24.3% VGBL 61.0% VGBL 66.0% Dec/12 Mar/13 Jun/13 Sep/13 Dec/13 TRADITIONAL PLANS PORTFOLIO ASSETS UNDER MANAGEMENT BREAKDOWN Interbank Deposit Pre-Fixed 1.7% 3.6% DEC/12 DEC/13 DEC/12 DEC/13 Interbank Deposit 3% Pre-Fixed 6% Debentures and commercial papers 9.0% Securities* 12.9% Stocks 3.4% Debentures and commercial papers 7.7% Securities* 14.9% Stocks 2.3% Linked to inflation 94.8% Linked to inflation 91% Government Bonds 74.7% Government Bonds 75.1% BB Seguridade Participações S.A. Investor Relations 23

24 Premium Bonds PREMIUM BONDS COLLECTION (R$ MM) QoQ: + 33% YoY: + 67% + 62% 6,270 COLLECTION BREAKDOWN ,101 1,093 1,958 1,383 1,834 3,871 Montlhy Payment 29.8% Montlhy Unique Payment Payment 49.6% 50.4% Unique Payment 70.2% RESULTS WITH DRAWS (R$ MM) LOTTERY RATIO (%) QoQ: + 28% YoY: + 57% + 77% 245 QoQ: p.p. YoY: p.p p.p BB Seguridade Participações S.A. Investor Relations 24

25 Premium Bonds COMISSION RATIO (%) PROFITABILITY QoQ: p.p. YoY: p.p p.p % QoQ: + 94% YoY: + 6% 63.4% 63.9% 51.7% 104.0% 88.6% 57.1% - 21% PORTFOLIO BREAKDOWN Net Income (R$ MM) ROAE TRADING PORTFOLIO BREAKDOWN Debentures and commercial papers 13.3% Others 6.8% DEC/12 DEC/13 DEC/12 DEC/13 Debentures and commercial papers 9% Others 8% Stock Funds 1.1% Linked to inflation 5.5% Stock Funds 1.3% Securities* 10.5% Government Bonds 69.4% Securities* 5% Dec/12 Government Bonds 78% Linked to inflation 23.1% Interbank Deposit 38.2% Pre-Fixed 37.5% Interbank Deposit 49.6% Pre-Fixed 43.7% BB Seguridade Participações S.A. Investor Relations 25

26 Brokerage BROKERAGE REVENUES (R$ MM) REVENUES BREAKDOWN QoQ: + 19% YoY: + 40% 1, % 1,766 Brasilcap 12.5% Other 2.7% Brasilcap 16.3% Other 0.5% Brasilprev 16.8% SH1 48.2% Brasilprev 15.6% SH1 50.3% SH2 19.8% SH2 17.3% ADJUSTED NET INCOME (R$ MM) NET MARGIN (%) QoQ: + 24% YoY: + 50% + 38% 913 QoQ: p.p. YoY: p.p p.p BB Seguridade Participações S.A. Investor Relations 26

27 Guidance 2013 Ratio 2013 Estimates 2013 Performance BB Seguridade - Adjusted ROAE 37% - 41% 35.9%¹ Premiums written growth - BB Mapfre SH1 37% - 49% 33.7% Premiums written growth - Mapfre BB SH2 15% - 20% 17.2% Collection growth - Pension Plans 30% - 40% 27.1% Collection growth - Premium Bonds 50% - 65% 62.0% ¹ Considering the distribution of dividends, the adjusted ROAE would be 38.4% BB Seguridade Participações S.A. Investor Relations 27

28 Guidance 2014 Ratio 2014 Estimates BB Seguridade - Adjusted ROAE 44% - 49% Premiums written growth - BB Mapfre SH1 24% - 32% Premiums written growth - Mapfre BB SH2 19% - 26% Collection growth - Pension Plans 33% - 47% Collection growth - Premium Bonds 10% - 15% BB Seguridade Participações S.A. Investor Relations 28

29 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 29

30 Portfolio of Products

31 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 31

32 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 32

33 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 33

34 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 34