In This Article:
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Net Income: BRL4.2 billion in the first six months of 2024, an 11.8% growth year-on-year.
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Adjusted Managerial Profit: BRL3.7 billion, a 3.1% increase, excluding IFRS 17 and extraordinary events.
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Insurance Premiums Written: BRL8 billion, a 5% increase, with credit life growing 21%.
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Loss Ratio: 27%, a reduction of 1 percentage point year-on-year.
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Pension Reserve Balance: Exceeded BRL410 billion, up 12% year-on-year, with a net inflow of BRL5.3 billion.
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Savings Bonds Reserves: BRL11.2 billion, a 5% increase.
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BB Corretora Brokerage Revenues: BRL2.7 billion, up 12% year-on-year.
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IT Investment: BRL258 million in IT infrastructure, cybersecurity, and digital solutions.
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Major Risks and Transportation Insurance Premiums: BRL75 million, a 71% increase year-on-year.
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Brasilprev Impact from SUSEP Circular 678: BRL234 million reduction in capital due to write-off provisions.
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Recurring Net Income: BRL1.9 billion, a 1.6% growth year-on-year.
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Investment Income: BRL9 billion, with a 3.1% growth in the first half of the year.
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Combined Ratio: Worsened due to increased commission fees.
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Pension Collection: Grew 2% year-on-year, 8% year-to-date.
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Premium Bonds Reserves: Increased by 5% year-on-year.
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BB Brokerage Revenue: Grew 12% year-on-year.
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Pension Reserves Growth: 13%, above guidance range of 8% to 12%.
Release Date: August 05, 2024
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 net income of BRL4.2 billion for the first six months of 2024, marking an 11.8% growth year-on-year.
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The company's insurance operations saw a 5% increase in premiums written, with credit life insurance growing by 21%.
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Pension business reserves exceeded BRL410 billion, up by 12% over the past year, with a net inflow of BRL5.3 billion.
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BB Corretora brokerage revenues increased by 12% year-on-year, totaling BRL2.7 billion.
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Investments in IT infrastructure, cybersecurity, and digital solutions amounted to BRL258 million, enhancing operational efficiency and customer experience.
Negative Points
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The implementation of SUSEP's circular letter 678 led to accounting adjustments, impacting the bottom line with a BRL650 million deficit booked in January.
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The company's adjusted managerial profit grew only 3.1%, which was below expectations due to financial impacts from marking to market and interest rate fluctuations.
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Premiums written were below the guidance range, impacted by unexpected factors such as the late release of the Safra plan and discontinued product lines.
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The loss ratio was affected by a catastrophe in Rio Grande do Sul, adding 1 percentage point to the overall loss ratio despite reinsurance recoveries.
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Investment income was negatively impacted by a reduction in the Selic rate and marking-to-market losses, contributing to a lower-than-expected financial performance.