9M17 Institutional Presentation BB Seguridade Participações S.A. | Investor Relations
Overview
Track Record 2014 Establishment 2013 of IPO ADR – Level I IRB – Brasil RE Equity 2012 investment in Establishment of 2010 BB Seguridade Establishment Brasildental of the Joint Partnership Venture with 2008-2011 with MAPFRE Ownership Odontoprev restructuring of 1999 BB’s insurance, Partnership Pension Plans 1996 with Principal and Premium Financial Establishment of Bonds division 1995 Group in Brasilveículos in 1993 Brasilcap’s Private partnership with 1987 1981 inception in Pension Plans Creation of SulAmérica partnership Brasilprev BB Corretora’s Establishment with establishment of BB’s SulAmérica, insurance Icatu and operations Aliança da Bahia 3 BB Seguridade Participações S.A. | Investor Relations
Estrutura Acionária - Parcerias Ownership Structure Free Float 33.75% 66.25% BB Seguridade 100% 100% BB Seguros BB Corretora BB MAFPRE MAPFRE BB SH2 Brasilprev Brasilcap IRB Brasil - Re Brasildental SH1 P&C Pension Plans Premium Bonds Reinsurance Life, Mortgage Life Dental Insurance and Rural BB Seguridade 74.9% 50.0% 74.9% 66.7% 15.2% 74.9% Economic Stake (%) BB Seguridade 49.9% 49.0% 49.9% 49.9% 15.2% 49.9% Voting Stake (%) Board of Directors 50.0% 50.0% 50.0% 66.7% 20.0% 50.0% Representation (%) Board of Executive Officers 50.0% 50.0% 50.0% 50.0% - 50.0%¹ Representation (%) Brazilian Government; Bradesco Seguros S.A.; Itaú Seguros S.A.; FIP Caixa Barcelona; Other. 1. One of the members is elected by consensus. 4 BB Seguridade Participações S.A. | Investor Relations
ESTRUTURA ORGANIZACIONAL BB SEGURIDADE Internal Structure General Meeting Fiscal Council Board of Directors Audit Committee Internal Audit Related-party Committee Executive Board CEO José Maurício Pereira Coelho Chief Chief Chief Financial Officer Risk Officer Marketing Officer Werner Romera Suffert Antonio Rugero Guibo Sérgio Augusto Kurovski 5 BB Seguridade Participações S.A. | Investor Relations
Shareholders Structure TOTAL CAPITAL BREAKDOWN – SEP/2017 FREE-FLOAT BREAKDOWN¹ – SEP/2017 Individuals 5.2% Institutional 13.6% Free-float 33.8% Banco do Foreign Brasil Investors 66.3% 81.1% ¹ Does not include treasury stocks. 6 BB Seguridade Participações S.A. | Investor Relations
ADR Program In 2014, BB Seguridade established a sponsored Level I American Depositary Receipt (ADR) program. Depositary Bank: Deutsche Bank Trust Company Americas Custodian Bank: Banco do Brasil S.A. Ticker: BBSEY Structure: Level I ADR Exchange: Over-the-counter (OTC) market Ratio (ADR:ORD): 1 ADR : 1 ORD DR ISIN: US05541J1034 CUSIP: 05541J103 7 BB Seguridade Participações S.A. | Investor Relations
Corporate Governance Board of Directors Six members: Two members appointed by Banco do Brasil from its Board of Executive Officers One appointed by the Ministry of Planning, Budget and Management and the other one appointed by the Ministry of Treasury The CEO of BB Seguridade One member appointed by the minority shareholders Board of Executive Officers Four members: Elected among the active employees of Banco do Brasil Remuneration policy: fixed monthly wage plus variable portion between six and twelve monthly wages. The variable portion is paid as 50% in cash and 50% in stocks with vesting period of 4 years. Related-party Committee Three members: One is the independent member appointed by the minority shareholders The independent member has veto power Stocks Only common shares 100% tag along 80% payout (semi annual dividends) 8 BB Seguridade Participações S.A. | Investor Relations
Access to Banco do Brasil’s network BB Seguridade Equity Income Brokerage Income Cost Reimbursement Banking Fee Equity Income 66,25% Any proposal for changes in the agreements must be examined by the Related-party Committee where the independent member has a veto power 9 BB Seguridade Participações S.A. | Investor Relations
Backed by Banco do Brasil with Expertise of Private Partnerships Expertise from Private Partners Backed by Banco do Brasil Fast decision making Solidity, tradition, security and reliability BB Seguridade operates in an arm’s length format Safe harbor, especially for long term products Monitors the developments of any potential conflicts between BB Flight to quality and less susceptible to market conditions and BB Seguridade Brand awareness Improves corporate governance Minimum voting stake of 50.1% Term of the Partnership Relationship Start End agreements (years) Agreement with BB Corretora for distribution of Banco do Brasil 20 January-13 January-33 products in Banco do Brasil's branches Mapfre Joint Venture 20 June-11 June-31 Principal Joint Venture 23 April-10 October-32 Icatu Partnership No defined term June-05 - Aliança da Bahia Partnership No defined term June-05 - Odontoprev Joint Venture 20 September-15 September-35 10 BB Seguridade Participações S.A. | Investor Relations
Competitive Advantage BB Seguridade strategy focuses on bancassurance with its own broker, taking advantage of the access to Banco do Brasil distribution network. Distribution Channel Own Brokerage Bank Channel¹ Low complexity business model 1 º 65.8 Million clients 4,871 Branches 60,067 ATMs No underwriting risk 13,683 Banking correspondents 35,381 Points of service in shared network Low capital needs Non-banking Channel 157 Partnerships (Affinity) 19,823 External Brokers Access to the largest distribution network in Latin America 1. Data as of September, 2017 11 BB Seguridade Participações S.A. | Investor Relations
Strong Financial Performance ROAE¹ 9M17(%) INSURANCE COMPANIES ASSOCIATED TRADITIONAL INSURANCE COMPANIES WITH BANKS Brokerage participation 168,8% 46,0% 31.5% 17.2% 13.9% 12.5% 18,6% 9.2% 8.1% Source: Companies and Susep 1. Annualized ROAE calculated by dividing the adjusted net income by the average shareholder’s equity multiplied by 4/3. 12 BB Seguridade Participações S.A. | Investor Relations
Macroeconomic Environment
Global Macroeconomic Data 2015 2016 2017E 2018E 2019E World Economy - GDP Growth¹ 2,7% 2,4% 2,7% 2,9% 2,9% World 2,6% 1,6% 2,1% 2,2% 1,9% USA 2,0% 1,8% 1,7% 1,5% 1,5% Euro Zone 6,9% 6,7% 6,5% 6,3% 6,3% China Brazilian Economy² -3,8% -3,6% 0,7% 2,5% 2,5% GDP Growth - Brazil 13,3% 14,0% 7,0% 7,0% 8,0% SELIC (ends of period) n.a. n.a. 9,8% 6,8% 8,0% SELIC (year average ) 10,7% 6,3% 3,1% 4,0% 4,3% Inflation (IPCA) 10,7% 7,2% -1,1% 4,4% 4,3% Inflation (IGP-M) 3,90 3,26 3,20 3,30 3,33 Dollar (quotation in R$) 1. Source: World Bank - forecasts as of June, 2017 2. Source: Focus - forecasts as of November 03, 2017 14 BB Seguridade Participações S.A. | Investor Relations
Bancassurance POPULATION WITH CHECKING ACCOUNT¹ (%) FINANCIAL INCLUSION¹ (%) 98.9 93.6 60.0 87.3 57.0 55.0 78.9 53.0 51.0 68.1 56.9 38.3 United United States Italy China Brazil Venezuela Colombia 2010 2011 2012 2013 2014 Kingdom Source: Febraban Source: World Bank 1. CPFs with active relationship in Brazilian Financial System /Economically active population 1. Data as of 2014 BRANCHES IN BRAZIL BANCASSURANCE IN INSURANCE DISTRIBUTION 71.5% 69.2% 69.6% 69.0% 4,871 4,845 4,397 30.4 28.5 3,414 30.8 31.0 5.6 4.8 4.5 5.1 5.3 4.9 5.0 5.0 2,255 11.5 11.4 12.6 14.3 20.6 20.6 19.8 20.6 27.2 27.5 28.5 24.5 2013 2014 2015 2016 1 Banco do Brasil Bradesco Itaú Caixa Santander Others Source: Companies Market-share (%) 1. Data as of June/17. Source: SUSEP 15 BB Seguridade Participações S.A. | Investor Relations
Global Insurance Industry Insurance market presents low penetration level in Brazil Insurance premiums 1 / GDP (%, 2016) Life Insurance Premium / GDP Non-Life Insurance Premium / GDP 3.3 1.4 #41 In Total Insurance 2.7 2.2 4.7 In Life Insurance #64 2.6 16.7 2.4 2.6 16.2 3.2 2.0 8.3 11.5 4.3 9.5 2.3 3.3 2.8 1.9 7.6 7.4 7.2 7.0 1.8 6.2 0.8 6.1 3.5 3.6 1.9 1.3 3.0 2.9 2.2 2.8 2.8 2.3 2.7 2.1 0.9 1.1 0.5 0.4 South Africa South Korea United Kingdom Japan France Italy Brazil Colombia Mexico Netherlands Denmark United States Germany Portugal India Taiwan Spain Chile China Argentina Hong Kong Finland Source: SUSEP and Swiss Re – Sigma 03/2017 1. Excluding businesses abroad 16 BB Seguridade Participações S.A. | Investor Relations
Global Pension Plans Industry Pension market is growing in Brazil due to the life expectation increase Pension Assets/GDP² (%) 2015 2016 184% 168% # 9 In assets 126% 123% 121% 121% 120% 119% 112% 108% 103% 97% 74% 67% 59% 57% 56% 42% 42% 40% 23% 21% 13% 12% 6% 6% Australia Switzerland US UK Canada South Africa Japan Ireland Hong Kong Brazil¹ Germany France Netherlands Source: Towers Watson 1. Brazil pension assets were recalculated based on Abrapp and FENAPREVI data to include opened and closed entities 2. Assets/GDP ratio for the world is calculated in USD and assets were estimated as of Dec 31, 2016. 17 BB Seguridade Participações S.A. | Investor Relations
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