Bb Seguridade Part Sa Adr

to our virtual conference call to present the results of the first quarter of 2025. This conference call is being recorded and has simultaneous translation into English. To listen to the audio in English, please press the interpretation button at the lower right-hand side of your Zoom screen. As usual, we are going to divide this event in two parts. In the first part, our CEO, Andre Howie, and our CFO, Rafael Esperindio, are going to present the main deliveries of the first three months of the year. The presentation may be downloaded at our investor relations website at the address www.bbseguridadri.com.br. Then, in the second part, we are going to have a questions and answers session, when analysts and investors will be able to ask any additional questions. I'm going to give the orientation for you to participate after the presentation. Now I would like to give the floor to Andre, who's going to share with you the main results of the quarter. Andre, hello. Good afternoon, my dear friends. I would like to first start by thanking all the people who are following our virtual meeting about our performance in the first quarter of 2025. Our managerial profit, which does not consider IFRS 17 standards, reached the mark of 2 billion BRL, an increase of 8.3% compared to the same period last year. This performance was supported both by the growth in non-interest operating income, which was 4% higher in the period, and by the 38% expansion in the net investment income. Our retained earnings premiums, the insurance main revenue metric, totaled 3.6 billion BRL, a 7.1% growth in the first quarter. Our loss ratio had already closed the year at the lowest historical level, fell 0.3 percentage points, closing the quarter 26.1%. In our accumulation business, pension reserves expanded 8.2% in 12 months and reached the expressive mark of 440 billion BRL. At BB Corretora, brokerage revenues totalled 1.4 billion BRL, up 4.1%. Now, let's talk a little bit about the main advances that we had both within our product portfolio as well as in alternative distribution channels. This quarter, almost 127 million were invested in the development of new products, maturation of digital platforms and business support, thereby ensuring 99% availability of our systems and reduction of our time to market. In the first quarter alone, we launched two products that opened important growth avenues for the company. The first of them was BB, Seguros Consórcio, Protegida, credit life insurance that provides peace of mind to shareholders of Bancos do Brasil consortium portfolio and settles the letter of credit in the event of death of the policyholder. Along with BBI, we also are present in workers credit program to offer a kind of credit life insurance. So with the adjustments in contracting hour credit life for farmers that we made last year, we achieved a significant growth of 39%. As part of our channel diversification strategy, we achieved a volume of 419 million in premiums written, which is equivalent to 10% of the insurer's total. In structure business segment, where we have Life Coinsurance and Solar Panel Insurance operations grew 41% compared to Q1 2024. In partnerships with cooperatives and agricultural resellers, our growth was 67%. In premium bonds, we also had a good performance, raising 90 million BRL through partners and an increase of 38% year-on-year. We also had more advances in distribution business thanks to the BB Corretora Centralized Management Maestro platform, which plays a key role in making our distribution company gain more and more prominence. With this platform, we are able to connect sales journeys from different channels and partners and offer flexibility for creating campaigns and commercial strategies. An example of recent evolution is the qualification of sale of bidding bond insurance on the eBidding portal, the largest in Latin America, which in last year alone transacted more than 50 billion BRL involving about 1,080 public agencies and 318,000 suppliers. We also continue to invest in improving journeys in digital channels, which contributed to the sale of more than 446,000 products, equivalent to 17% of the total amount sold in the court. I would like to highlight that 48% of digital contracts were with new customers, reinforcing the importance of this channel for our strategy of expanding our membership and making protection solutions increasingly more popular. Moving to the next slide. All these improvements have been driven thanks to our relentless pursuit for creating value and serving our customers, both current and potential. This is mariutilized in our consolidated NPS in the quality zone, advancing 4.6 points as compared to March 2024. The number of complaints continues to fall. In 12 months, it had more than 25% reduction. And the level of protection of our membership continues to evolve. The number of super protected customers grew 9%. The service conveyor belt and the differentiated sales, the different benefits offered to this audience reflected in a service NPS 1.8 points higher and a relational NPS almost 6% higher. Now I end my speech and I give the floor to Rafael who's going to give you more details. I'll come back for the Q&A session. Thank you, Andre. Well, now giving you details about the numbers, we ended Q1 with a profit of two billion and here differently from the way we ended last year because there was a temporal mismatch. And now in Q1, it is more significant. So you can see our results excluding the temporal mismatch of assets and liabilities of Brazil PREV. So just remembering. We had an IGPM going down by 0.3 in March against a 1.1 positive IGPM. So they had an impact on assets and 1.1 positive IGPM having an impact in our liabilities. So the noise took out 178 million from our bottom line, which is very similar to the effect that we had in Q124. And it's not really relevant when we look the year-on-year variations in the net. income but to assess the face value of the profit the right thing would be for us to think of 2.1 taking out the effect because we know that IGPM in April is 0.4 positive and we are going to have liabilities being impacted by 0.3 and so as you know the only variable that is still unknown is IPCA which is 0.4 so it should be even more beneficial for us in terms of the net investment income. Now speaking more specifically about the net investment income, we had a 38% year-on-year growth accounting for 16% of our bottom line and the effect could be even more positive as you are going to see on the next page with more details of the 152 million growth in our bottom line. We have a growth coming basically from net investment income and the operational result contributed with 64 million. Now, when we look at the components of the operating results change, the main driver for growth was the evolution of retained earned premiums from our insurance operation. As a result of the sales of last year, 140 million came from earned premiums this is also reflected in our brokerage brokerage revenues adding 32 million but revenue in one side ends up being expensive on the other an increase of 32 million was offset by the increase in the cost of acquisition at brazil seg Another variable or positive impact was the reduction in loss ratio, 6 million added to our operating result and 13 million coming from management finish. which is related to an increase in reserves. So this is the breakdown of operating result changes, partially offset with a 95 million percent reduction, especially because of the increase in our expenses, current expenses related to our operation. Now, when we look at financial numbers, growing 88 million year on year, 31 million coming from volume, selic selic or changing in X at market to market, especially if compared to last year. And then we also have expenses, especially related to Brazil CAP and Brazil PREV, which partially offset this growth. These are financial expenses. And then we have the temporal mismatch was 4 million negatives, because in first quarter last year, and then mark to market, lastly, A little bit more detailed, it's 10 million negative as compared to 71 million negative in the first quarter last year, a gain of 61 million, something that we had been reinforcing to the market we are likely to have. a more positive impact with mark to market, which is clear in Q1. And as I mentioned before, and most of our exposure is free, it's in bonds that are pegged to the inflation and the curve will open. So we haven't yet captured all the positive movement in closing that we have in the first quarter is going on now in the Q2. Not to mention the mismatch and inflation rates. And now it's a consensus in the market. IPCA will be above the IGPM, which is another positive factor for our investment income. So I said it was 38%, and today, according to current information, it's going to accelerate during the year. Now about our insurance operations, premium returns dropped 6%, strongly influenced by the products that are related to inflation, especially agricultural insurance that dropped, partially offset by term life and rural lien. And our credit life is also affected. So this is a different perspective that we are showing, which is in terms of retained premiums, even though it earned premium went down 6 percent, the retained premiums dropped less. But if we segregate and if we remember that last year we really reinforced the discontinuity of our products, And this is something recurring that we do so that if the product is not delivering the profitability that we require related to our capital, we discontinue the product without any problem. We are always seeking profitability. This comes first and then revenue. So the insurance for collateral had a contribution So this is the fair comparison in terms of what we owe along the year would be premiums earned without the insurance for the violation or the breach of guarantee. So if we segregate This kind of insurance and all the share that is related to reinsurance, the retained premiums would have grown 2% year on year. Now, when we look at the quality of the operation, there is an increase of the combined ratio, but it is because of higher commissions. So this is basically related to mix and agricultural and other products on average gain share. That's why it goes up on average. Loss ratio, the main highlight, it drops year on year. Life is the main highlight. We had an expected increase in widely communicated to the market because of La Nina, we had an impact, especially in the state of Paraná and Rio Grande do Sul in southern Brazil. So this impact of crop insurance increased the loss ratio of the rural segment, but it was offset by a life segment. Last year, differently from last year, we remember the catastrophe that hit the southern states of Brazil, and most of the corn crop and soybean crop have already been harvested. Soybean has been harvested and corn is almost fully harvested too. So we are not likely to have a loss ratio in terms of crop insurance at the same level as we had last year. So we are going to see better indices along the year of 2025. The weather forecast indicates neutrality until the beginning of next year, so there is no reason for concern. Much to the opposite, we are likely to continue seeing an improvement along the year in terms of expenses at the same level as last year. Net investment income grew 40% compared to last year and especially driven by the higher SELIC rate, and net income grew 9%. So here, we had an 8% increase, a slight worsening of the combined ratio, with commissions going and reflected in BB, and then plus 40%, and then net income grew more strongly than revenue because of better investment income. Now on page 9, talking about our pension business, So it dropped 20% year on year in terms of contributions. So it was the strongest quarter ever in our history. So it's very hard to gain or to offset it. There were many extraordinary events. There had been a change in the waiting period for some financial instruments with tax benefits and this brought lots of inflows into pension, but this was a very one-off and very specific movement in time and now it's back to normal. So when we look at this number 13, we do not have publicly published data available, but we captured one third of the market, which is very good performance in terms of contributions. In terms of net inflow, we had redemption ratio was higher. It went from 8.6 to 11.6 in terms of redemptions, and this is very much related And when we find this with customers, most of them justified this to buy real estate or to complement income. And this was one of the main reasons for the redemptions. Reserves grew 8%, the average management fee grew 3% at a slower pace than we had seen in the growth of reserves because of a reduction of the average fee, which is directly related to the risk aversion. So it's still present in the market and customers are still directing their flow very much to more conservative instruments. And as a consequence, we have a lower management fee. And this is what we have been seeing along 2025. And lastly, the net adjusted net income grew 17 percent. But the investment income was much better than last year, seven million positive, much better than last year. And last year it was one hundred million negative. So this combination drives the net income up by 17% as compared to last year. Now, in terms of premium bonds, you can see in terms of collections down by 0.3%. We have 20% more distribution than last year, and we have a compensation in the financial margin. And we have a drop of 40% with a negative adjustment in terms of the hedge position that we had in the pre portfolio that started more strongly late last year. And we disassembled it along the first quarter. We closed it gradually. But in the end, there was a negative adjustment with a net impact in the first quarter with an increase of the reference rate. because of the increase of SELIC and compression of margins, this affected the investment income, driving down by 24%, the net income, which is something that will improve significantly along the second quarter, but the face value curve closed, and we no longer have position for derivatives, only residual. Now, next page, we have our brokerage company, 4% growth year-on-year revenue, and that's why the net income grew 7%, net margin also better because of the net investment income, a company that carries the entire portfolio of assets in post-fixed. And to end our presentation, we are talking about our guidance. And so in terms of non-interest operating result, we are close to the center of the target, which is from 3 to 8 written premium. The range was 2 to 7, but then it was down by almost 6%, especially by due to credit related products. And then we are seeing a good reaction of credit life insurance because of what Andre said. These are new products that started being sold in March. That's why they are not yet reflected here. So credit life and that are going to provide a more credit life for the private payroll loans. and a very important variable not yet known, which is the size of the plans and subsidies for crop insurance that we're going to see in the second half of the year to see whether it is feasible or not to keep this range. In terms of pension reserves, we are below our target range was 12 to 16, 12 to 16 is for the whole year. So being below that range is something that we already expected for a first quarter. That's why the select rate and average rate will accelerate along the year. And the rate is below this range and is accumulated 11% in the last 12 months. So as the average rate accelerates, and then we are likely to see and this is what we are expecting considering the realized the growth in reserves converging to the proposed interval and everything is as planned. So these were the main highlights that I wanted to share with you and now we should go back to our questions and answers session. Thank you so much. We are back. We are now going to start our questions and answers session. If you want to ask a question in writing, just click on the Q&A icon at the bottom of your Zoom screen. We'll try and answer live all the questions that we receive. If we cannot because of time, reasons, we're going to send the answer to the email that you used when you registered. Some analysts will be allowed to ask questions in audio. If you want to join the line, just click on the raise hand and open your microphone when we say we can. You may ask your questions in Portuguese or in English and we're always going to answer in Portuguese with simultaneous translation into English. Now we are going to have a first question from Caio Prato from UBS. Caio, please, you may start. Caio, I'm sorry, we cannot hear you. Well, maybe Caio is having some issues with his microphone. Our next question comes. We can hear you, Caio. You may ask your question. I apologize. Good afternoon, Felipe and Andres Perindio. I have two questions to ask. Number one. is the net investment income of PREVI. Could you give us some more detail about the time mismatch adjustment? And you reclassified a PCC adjustment in the net investment income with a... 35 million less impact this quarter. So can you explain more about these adjustments that you have made and whether you made the adjustment in the basis in the first quarter of 2024? Because this affects your operational numbers. Thank you for the question, Kyle. I'm going to go for the reclassification that we did. It was good because it was very nosy and affected our operational results. And it refers to updates of inflation rate plus interest rate. So it didn't make sense to leave just that share in our operational results. And that's why we decided to classify for financial expenses. And then we review the basis for Q1 2024. is in the same reclassified basis as before. As to other impacts in the investment income, as I mentioned in the presentation, we have not yet appropriated all the improvement that we saw along the four months that we know in terms of closing. Most of our pre-exposure, especially in Brazil PREV, is related to bonds that are related or pegged to inflation. And the curve in the first quarter, the real curve, differently from the nominal curve, opened in some instances. So we had a negative marking in some vertices because of a small exposure that we have. in terms of face values and the longer vertices that closed on the margin. So this ended up not fully benefiting Q1 in addition to the IGPM effect. As I said in March, there was a 0.3 deflation and liability, a positive inflation of 1%. So this really affected or hurt the closing of the quarter. And I'm not going to pay so much attention to that. This is just noise. And in April, you're going to see the reversal. But our expectation is that in the second quarter will be a lot more positive in terms of the investment income, especially in terms of revenue as compared to what we had in Q1 this year. This is grades perennial, very clear. And the second is related to the guidance in terms of premiums. you expected to have a weaker period. But which lines are more likely to recover more intensely from now on? Could you talk a little bit about credit life and consortium, especially for the payroll loan and whether this can improve? Thank you so much. So I'm going to give you some a little bit more information about premiums. What I mentioned in that dynamics and you reinforced, Kyle, in Q1, we already expected, especially if we look at the year on year comparison, this is more difficult. I shouldn't remember Q1 last year, we had the completely opposite environment in terms of what we are experiencing today. Q1-24, we had lower rates and expectation that rates would go down during the year. This year we have the opposite. We have a higher rate and we are expecting rates to go up in Q2 and we are seeing these projections evolving to slightly lower levels. but the environment is completely different now when we look this environment of lower rates and expectation of declining trend this environment is more favorable for the issuance of credit life insurance premiums and it's not just by any attention q124 was a record of premiums issued for credit life insurance. Now we have a stronger comparison basis in Q1 2025. Now, Now, forgetting a little bit the year-on-year comparison and trying to look at the first quarter alone, what we see is that for individuals, okay, there has the expected reduction because of higher rates with less space to include credit life insurance, and this reduces penetration, but the segment that we suffered was the company or the corporate segment. So this is related to the guarantee account, especially for micro and small businesses and share of micro and small businesses. And the drop was much more significant, so much so that the corporate credit life represented 25% of premiums issued, and now it represents 8%. So half of the drop that you are seeing of the 21% year on year for credit life, most of it comes from the corporate segment. Now, going to the second quarter, what we are seeing is that the credit life, and we are seeing the consortium and the credit life, And then we have relevant. share, especially for the credit line for a private payroll loan. We have a smaller penetration than the other product that is still very much in the beginning. And as a reminder, the opening of sale of this product in branches only started last week. And now we're going to see the issuance gaining More speed. So it's half of the penetration that we see for other lines of credit life for individuals. And this is a product that we want for the short term. Now, a purchase consortium is more for the long term because we only appropriate the premium. The monthly premium is very much related to mortgage insurance. We need to build a portfolio, but then it will provide results more in the midterm. So the midterm today for the lines that we can cross sell with credit life And purchase consortium is about four months. It takes a little while, but this is important for recurrence and profitability in the mid and long term. May I? Well, complimenting. what you said by the credit life for private payroll, and we considered that Banco do Brasil has an impact here with smaller times. and that the expectation that this product will reach before the end of the 25 million workers, and today we have 1.5, we understand that the prospective premium volume may grow considerably. So we are betting on this. we understand that yes there will be a recovery of credit life insurance in the future and even for rural insurance and we are comparing life insurance to rural insurance and the behavior with a quite significant reach and we also are betting on the strength of our banks so q1 in line if we compare to the previous quarter but strength with the new products and as Rafael said the product of consortium we delivered as we had promised and so it's a product that we believe will be providing more long-term results and we believe that credit life will gain strength in the future Thank you so much. Thank you, Andre and Inspirandio. Thank you for your question, Kyle. Our next question comes from Danielle Vass from Safra. Danielle, you may open your microphone and ask your question. Thank you, Philip. Good afternoon, Andrew, Andre, and Inspirandio. It's just a follow-up about the automatic paycheck reduction loan. We thought that one for the contracting of credit was 2%. Now, doing the math, As you issued 61 million plus 2B of contracting at BB, we would get to three or four driven by branches distributing. As you said, you might increase it. Do you know how much is the ratio of what is issued by contracting? Would it be okay for us to estimate 5% considering the profit pool? Thank you for your question, Daniel. I think that the bias today would be more towards a reduction of the average rate that you're mentioning. It's difficult for us to project because the fee depends very much on the time. So operations that are coming off now is close to the numbers that you said now. From now on, especially because branches are going to bring a much higher volume, times will influence and this is a variable that we do not have full control today. If times in bank branches, if it's a longer time, Maybe that fee could go a little bit up. Not too much, but a little bit. But if it's smaller, it might even go down a little. It's very much dependent on time. It's clear you helped a lot. Thank you, Spirandio. Thank you, Daniel. Our next question comes from Tiago Binsfeld from the Goldman Sachs. Tiago, you may ask your question. Good afternoon, Andre, Rafael. Thank you very much for taking my question. I would like to understand the line of net inflow. especially looking at redemptions. So we've been seeing the redemption rate above 11% for a few quarters. You've mentioned the reasons, but do you think it's likely that it's going to go back to normal in the second half of the year? And is there any indication of that already in April? Thank you. Thank you for your question, Tiago. Well, redemption, as I said, as I mentioned in the last presentation, in the pool of customers in a sample where we can capture of customers that answer our survey, it's about 50%. They are justifying because they are buying real estate or to complement income, probably This higher income, they're using it to buy properties or real estate properties and the lower income they're using for income complementation. So real estate purchase, when inflation is higher, it ends up being something natural. It's not hard to expect a reversal of that movement. Something else that we've been seeing, which we do not yet see customers saying this clearly, we are kind of inferring. We've been feeling since the middle of last year until now where there is more market volatility. there is a higher competition and we see immigration to lower risk funds, reducing our average management fee, but very much this is because there is some competition with fee-free instruments. Brazilians are very aversive to risk. As we saw last year, there was a very strong opening considering the interest rate, and this had an impact in the profitability, especially those that are exposed to inflation. This is natural, and we always try to maximize return for our customers in the long term. As we had been carrying this because real rates are very, very attractive. And today, 7% of real rate and historically, the real rate was never much beyond that ever since. the real plan, we're expecting return and very attractive returns, but sometimes customers do not have the patience to put up with the volatility of fixed income instruments. So the impact that we saw in Q4 ends up being reflected in customers' perception. And when we see the profitability of funds, we saw this in February, and this somehow ends up leading to the need of redemption or reduction of the appetite to allocate more funds. Now, this year's dynamics, and then an instrument for those who are very risk aversive, And sometimes we see 95, 92% without tax, without volatility ends up being more attractive. They prefer living volatility, allocate their funds in LCA, LCI. So this possibly also had an impact. But we can infer that this happened in the first months of the year. From now on, this movement is likely to reduce, to go down. As I said in April, the real structure is closed. So there was an advance of this movement and then we have the interest rate and the curve has started to close. It closed in April and May, and this will be directly reflected. So we will be able to retain, to attract and retain a new flow. So the second quarter, if we assume, that the curve will remain stable or will keep towards closing. So we're going to have the beginning of a slightly more beneficial or more favorable scenario for inflows. It's too early for us to say because many variables may influence that and that are things that are outside our control, especially in international scenario. In addition to the technical explanation, so the effort of the commercial departments is for us to seek and retain customers. So we will gain momentum in terms of management and our market conditions. But in fact, we are going to have a greater push from the commercial area for us to go farther. Thank you, Andre and Rafael. Thank you, Tiago. Our next question comes from Antonio from the Bank of America. Antonio, you may ask your question. Hello, good afternoon. Thank you so much for your time. So, about premium, which is what surprises us the most. And as you said, Rafael, So you thought that it would be below guidance also because of the seasonality. Being below the guidance was expected. Were you disappointed since you gave the guidance last quarter and expanding the question, which terms of the guidance thinking in terms of operational results and premium, what is the performance like? And what is going to go from now on so that you review the guidance thinking of the operational and seeing the growth in premium? Thank you very much for your question and this is an opportunity to make it slightly clearer. We already expected it to be below the guidance in the first quarter. We're thinking of the growth of reserves in Brazil PREV because the implicit interest rates in the productions of return. In terms of premiums written, we didn't expect it to be outside the guidance in Q1. And so this is a little bit disappointing, especially with the agricultural or the crop insurance, even though it grew as compared to Q4, we've seen a drop. that was stronger than we had expected, especially in credit life insurance, we expected a year-on-year fall. But total premiums, we expected a growth year-on-year, and then a share of that item is below expected coming from corporate insurance and another smaller share from credit life insurance, especially in terms of companies, corporate. making it clear, I think that I ended up answering the two parts of your question, right? Thank you so much, Rafael. If you allow me, I would like to ask another question about payout. Payout between 85, 90. Well, taking the opportunity. So which variables could affect the guidance. Of course, one share extremely relevant is likely to come from Safraplan and agricultural insurance that will have a direct impact in terms of the writing of crop insurance premiums and In April, it was quite satisfactory, but we need to wait a little longer to see if this trend is going to maintain along the second half of the year. In terms of the performance projected for the so far, we think that it is feasible. It's challenging, but feasible. And that's why we think it's too premature to do any reviews in the first quarter. In terms of payout historically, what we've been practicing between 80% and 90% and today based on information. that are available to us. The trend is to be on the upper portion of the historical range. There is no significant need for us to retain capital and operation is not growing as fast as we initially expected and this is confirmed. We are likely to have something in the upper part of that range, but we need to wait to answer that question later in the year. Next question from Pedro Leduc from Itaú BBA. Good afternoon, Pedro. You may ask your question. Thank you all for your call. Thank you for taking my question. I would like to go back to rural insurance premiums. So we've been seeing the Rural Pledge and Farmers Life also. Could you give us an idea of the penetration of Farmers Life? Is there any adjustment to be made Is there any other way for you to go back? Thank you for the question, Pedro. Well, in terms of opportunity as part of Pharma's credit life insurance, the penetration today is two-thirds of the penetration that we have for credit life so we still have a lot of space to have more penetration and times are usually shorter one or two years no more for you to understand how it works and I'll try to make it simple without too much detail but in the rules segment we have three products. So crop insurance is related to costing the basic lines for credit in rural segment. So costing and marketing. So crop is just costing and so investment there is opportunity for rural pledge and the farmer's credit life insurance. And for marketing, it is also market's credit life insurance. So farmer's credit life insurance can be in costing, investment, and marketing. And crop is just in costing. And rural pledge is just investment, a small part for marketing. it's the most versatile product in the end that we have in our portfolio to try and offset when one line is performing below expected. So this is the only thing where we can combine the three main lines of credit life insurance and also farmers. credit life. After the pandemic, this is an industry that has been going through a rebalancing in terms of supply and demand. We saw prices going up at two levels that are unprecedented, the soybean in 21, 22, and now these prices are being rebalanced. as we used to see before. It's not really low, it's just lower than we've been having. So premiums are much closer to what we used to see in the past. Now farmers, need to structure themselves and structure their balance to face the new scenario in terms of commodity and supplies prices. They were slightly more leveraged and now they need to go back to something more in between and this takes a while. So I would say that as farmers review their balance sheet structures, we'll start to have slightly more opportunity for crop insurance to start going up again or growing. So in Brazil, I would not say that there is any evidence of prices going up. sometimes there's a second crop is almost 60 to 80 percent harvested and the yield is better than last crop so production will be higher than last season especially for these two crops corn and soybean so there is no offer that would lead to more price increases we need to see what is happening in other farming markets for these two commodities, but in the short term we are not seeing any evidence that prices could go up, which is a variable that would be more sensitive for crop insurance premiums. Thank you. Thank you, Pedro. Our next question comes from Guilherme Grispen from JP Morgan. Guilherme, you may open your microphone and ask your question. Hello, good afternoon. Thank you for the question. Thank you for taking my question and thank you for the call. I know you do not offer pro-NAMP insurance. Are you thinking about that? Some of your competitors are doing this. So we talked here very much about the credit life for private payroll loan and about pension. We talked a lot, and Esperengio talked about competition and other movements in the industry. But when I look here and trying to take out the industry and reversibility, Even though you have an amazing market share showing the strength of the agency at one-third, I've been seeing the technical reserves have been going down. So today is almost 27%. I would like you to offer me a diagnosis for pension with different growth rates, even though CELIAC is close to 10% in the midterm. Do you think that the growth in revenue should be closer? Thank you for your question, Crispin. Well, about credit life, you're right. We do not offer PRONAMP insurance, which is the national program to support small-sized businesses. So we want to have products for those lines that are subsidized to, and this should advance along the second quarter. As to pension, And what you said is right, especially because of the return. If we compare our return to the industry on average, and this justifies especially because of more concentration of the industry in private bonds at BrazilPrev, which ended up benefiting in terms of the volatility. Then Brazil Prev funds that are more concentrated in market risks, their public bonds with longer terms when the industry has a higher share of private bonds with less volatility because there's less liquidity. And this is the main point which is directly reflected in return and return of the industry slightly higher than ours. And that's why we end up losing share in terms of reserves. So this is the main reason. And the second reason. that plays not such a critical role. So portability is the second industry, but redemption is above average in the market. So this ends up affecting, but the main variable that influences the variation of our reserve balance is directly related to what you said, we lost a little bit market share, is the breakdown of everything that I mentioned to you. It's clear, it's perennial. We, as analysts, projection of technical reserves slightly easier is related to SILIC and assuming that SILIC is 12-13%, do you think that the growth in administration fees is closer to 5 or to the SILIC? So the average fee is likely to go down at this space at about one basis points per quarter. So I do not believe that management fees will grow similarly to SILIC. It should grow less. Now, quantifying that right now is difficult, but it will certainly grow less than the average SILIC rate. Thank you very much. Very clear. Thank you, Guilherme. Our next question comes from Marcelo from Bradesco. Good afternoon. You may open your microphone, ask your question. Good afternoon. Thank you for the opportunity. There are two points that I wanted to go over about credit life again. If the main reason for the drop in credit life is because of corporate customers, it's difficult to think of a significant recovery for contracting by companies and it's not so big to change completely. Q3 last year, the level of credit life premiums was very strong. So I think that the comparison basis from now on is slightly better in Q2, but then it gets worse further on. Even so, do you think you can go back to have growth in terms of credit life insurance premiums in the future? Number two is related to capital allocation. in terms of payout of dividends. Is this year, will there be any impact on buyback or just dividends? And Rafael, could you please remind us of the rules? What is necessary so that we can have the buyback again? Thank you for the question. I'm going to go answer the last question first in terms of dividends and buyback. So we have already reached the deadline, the legal deadline for the program. It ended in February in the middle of the first quarter. So far, we have no indication that might lead us to open a new buyback program this year. So I think that the market can assume that 100% of the cash flow that is likely to be paid out should come from dividends rather than buyback in 2025. As to credit life insurance, yes, we understand it's still feasible to think in growth due to a basic effect that you mentioned. The second and the fourth quarters are much weaker basis. So we are seeing a significant reaction in April already. something that we must wait a little longer to see if this expectation is going to become real or not, especially because of the private payroll loan insurance. So we had a good performance despite the limitations. This is at the end of March. So April is only towards the end of April. And even so, we should like 63 million premium with the penetration being less than half of what they have in the public sector. We have space to grow in origination and we have space to improve penetration, especially that they are now available in branches. So it's important for us to see our performance along the second quarter to see if this projection is going to be confirmed or not. But I think it's still too early for us to say that we are not going to have any growth. It is totally feasible for credit life to grow during the year. Of course, the growth is going to be small, but it's possible. Thank you. Thank you. Thank you, Mizahri. So we have time for one last question. A question from Eduardo Nishio from Genial Investments. Nishio, good afternoon. You may open your microphone and ask your question, please. Good afternoon. Thank you for the opportunity. I also have two questions. The first one regards your performance. This year, somehow, You have the bottom line performance kind of assured by your investment income. The SELIC is helping you in many ways. But I would like to explore a little bit more the premiums, premiums and revenue in general. you were having slightly more difficulty in terms of evolving, premiums didn't improve much last year, and this year you started not so good either. But once the league starts going down, do you really intend to grow slightly more strongly? Do you have any cross-selling agenda? any more penetration, to have a slightly stronger BB basis so that growth will resume and the top line will need to grow at some point in time for you to increase bottom line, at least in the next few years. And my second question, and in terms of equity, this is an important question. Are there ongoing negotiations with BB regarding the contracts for 2033? Can you advance those contracts now? And how would these new contracts be designed a little bit more automatically? Could you explore a little bit more the agenda? Thank you so much. Hi Eduardo, thank you very much for your question. I'm going to answer first the second one. Same answer as last time. Since I arrived, we've been talking to the bank. This is no taboo. but there is a maturation time for us to evolve to the model and what will happen in the future. So, so far we're focusing on operation and obtaining the best result of partnerships. And this is going to be addressed at the right time. We are not really worried about that. And this is not a difficult kind of conversation. About your first question. Yes. BB Seguridade, well, the office is inside the bank. This facilitates our interactions and conversations, many different departments, especially commercial directors and financial directors. And we define metrics together. And obviously the bank has priorities and they walk along the possibilities because the bank at the end of the day is the controlling shareholders. And this goes to the bank's financials. So there is an initiative that since last year, this is the consortium and this is a cross-selling line, but we've been seeking to go more and more into wholesale lines. We've been growing there. Of course, considering the overall scenario in percentage terms, the growth is not as big as retail. This is more robust. We want to advance and we are always talking to increase. And this conversation has been increasingly more constant. So we trust and we know that the bank is seeking as part of the results of BB Seguridade, we are part of the performance of the bank and this dynamics is going to happen not just next quarter but in the future. With the amounts that we may allocate, the capital So I believe with the companies in the group and also the dynamics, the bank dynamics and stronger. So that we are not just there at the front end, but also in the window, everyone can see us. We want people to see us and attract the initiatives that we have to improve. the profile in terms of financial education and everything. And we still have a lot of space to explore in the basis of the bank with millions and millions of customers. And we know that we have a potential that is very big. We have been growing and we have novelty. coming from within the company. So you can definitely wait. That will be closer and closer. And as I said before, the result of Q1 does not reflect what we are seeking for the year, what we have projected, and what you want. I think that we were a little bit surprised by premiums, but as for the rest, everything is going to be fine. Thank you. Thank you. Thank you, Nishiyu. So now we end our virtual conference call to announce the results of the first quarter. I would like to thank everyone for your presence here today. Now I'm going to give the floor to Andre and Rafael for their closing remarks. Thank you all very much once again. for taking part in our conference call and I remain available as part of the investor relations team to answer any questions that might not have been answered. Thank you and have a good afternoon. I would like to thank our customers, our employees and especially our shareholders that believe in BB Seguridad and to continue investing in us, in our company, and results are to come. Thank you so much and see you soon.