In This Article:
Release Date: May 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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BB Seguridade Participacoes SA (BBSEY) reported a managerial profit of 2 billion BRL, marking an 8.3% increase compared to the same period last year.
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The company's net investment income expanded by 38%, contributing significantly to the bottom line.
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Pension reserves grew by 8.2% over 12 months, reaching 440 billion BRL.
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The company launched new products, including BB Sigudus Consortium Proteid, which are expected to open important growth avenues.
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Digital channels contributed to the sale of over 446,000 products, with 48% of digital contracts being with new customers, highlighting the effectiveness of digital strategies.
Negative Points
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Premiums dropped by 6%, influenced by products related to inflation, particularly agricultural insurance.
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The redemption rate for pension products increased from 8.6% to 11.6%, impacting net inflows.
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The average management fee for pension reserves grew at a slower pace due to a shift towards more conservative instruments.
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The company's guidance for written premiums was not met, with a significant drop in credit life insurance premiums.
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Net income from premium bonds decreased by 24% due to a negative adjustment in the hedge position.
Q & A Highlights
Q: Could you provide more details about the net investment income of Brazil Prev and the time mismatch adjustment? A: Rafael Spirio, CFO, explained that the reclassification was made to better reflect financial expenses, moving inflation rate updates from operational results to financial expenses. This adjustment was also applied to Q1 2024 for consistency. The mismatch in investment income was due to the real curve opening in Q1, affecting bonds pegged to inflation. However, the expectation is for a more positive impact in Q2 as the curve closes and IGPM effects reverse.
Q: Regarding the guidance on premiums, which lines are expected to recover more intensely? A: Andre Howie, CEO, noted that credit life insurance and consortium products are expected to recover. The credit life for private payroll loans is gaining traction, with sales starting in branches, which should increase penetration. The consortium product is expected to provide long-term results, contributing to mid-term profitability.
Q: What is the outlook for redemption rates in the pension segment? A: Rafael Spirio, CFO, mentioned that redemptions are currently high due to real estate purchases and income supplementation. However, as the interest rate curve stabilizes and closes, the scenario should become more favorable for inflows, potentially reducing redemption rates in the second half of the year.