BB Seguridade Participações S.A.

Hello, good morning.

Welcome to our virtual meeting to present the results of the third quarter of 2025. This event is being recorded and has simultaneous translation into English. To listen to the audio in English, please press the interpretation button at the lower hand side of your Zoom screen. This event will be divided in two parts. In the first part, our CEO, Delano Valentin, and our CFO, Rafael Espirendio, will present the main deliverables of the presentation, either in Portuguese or in English, can be downloaded from our Investment Relations website at the address www.bbcgrid.ri.com.br. In the second quarter of the event, there will be a Q&A session, when analysts and investors will be allowed to ask questions. I will return after the presentation to give you instructions if you want to ask a question. Now, I would like to give the floor to Delano, who is going to introduce himself as the new CEO of BB Seguridad and share with you the main highlights of the quarter. Delano, the floor is yours. Thank you so much, Filipe. It's a great satisfaction to have you here for another BBC Greenland results presentation, where we will share the progress of our third quarter and the paths we are taking toward the future. This is Delano Valentin, CEO of BB Seguridade, and it's a great pleasure to be here with you. Before we dive into the numbers, I would like to share with you some impressions that I have had over these two months I've been leading the company. I found an extremely solid, profitable company with strong cash generation that consolidates itself as a strategic pillar in the generation of value for Banco do Brasil Conglomerate. This is the result. of the work of highly qualified technical teams and exceptional sales force, and above all, the trust that our customers place in us every day. The insurance business, not only at Banco do Brasil, but also at other large Brazilian banks, has proven to be resilient and essential for the balance of consolidated results, especially at times of greater volatility in economic cycles. Based on my experience of more than 40 years in BB conglomerate, including some time in Argentina, in the United States, I see that the insurance market in Brazil still has enormous growth potential. To illustrate, in agriculture insurance, for example, we have in Brazil a very small portion of the planted area protected by insurance. compared to the American market. Inaccumulation life insurance is not yet widespread. And in the pension market, a large portion of the Brazilian population does not have a private pension plan, or has one that is incompatible with the income they want to have in the future. Given this, my intention is to continue what has already been working well, but with focus on improvements. So we are going to do that based on three fundamental pillars. Number one, focus on the customer with a review of portfolios and journey, seeking to improve the experience, increase the perception of value and strengthen loyalty. Number two, innovation and digital transformation. integrating business journeys, creating new lines and expanding our presence in strategic and profitable segments. And number three, operational efficiency, making the most of the synergies between our investees and between them and our brokerage operations, seeking sustainable gains. And I am, and I see that my team is also very motivated with a challenge to lie ahead. I reiterate here my commitment to continue seeking alternatives to keep the company's capacity to generate economic value. Now, moving to our quarterly numbers, I will focus on the managerial results, which does not include the effects of IFRS 17. We ended the third quarter with a historical milestone, the highest recurring net income ever recorded by DB Seguridade, a total of 2.6 billion BRL, an increase of 13.1% over the same period of the previous year. Year-to-date, until September, we reached 6.8 billion BRL in recurring profit, a growth of almost 14%. This performance was mainly driven by the investment income, which after taxes grew about 55% year-on-year in the third quarter, the same rate observed in year-to-date numbers. Operating income net of taxes also follows a positive trajectory, 2.4% year-on-year growth and 5.7% in year-to-date numbers. In the quarter, we highlight the control of expenses in insurance and pension. to the growth in our brokerage business. Year-to-date, the main highlight is the loss ratio, which remained at a very good level in all lines, showing the quality of the risk contracted. I also highlight two relevant initiatives that we started this year. Number one, credit line insurance for new credit lines for small and middle-sized businesses, available as of July. In about three months, this initiative has already generated 294 million in prices. Credit Life for Private Payroll Loan, workers' credit, launched at the end of March, has already generated more than 160 million BRL and accumulated in premiums. These are new portfolios which help compensate our monetary gaps and still have great potential for penetration, generating important opportunities for expansion as the credit cycle reverses. In line with what I mentioned at the beginning about customer focus, we already have very positive indicators. by 5.1 points. Complaints fell 24%, even though they already represent a small portion of the operations. And we saw a 7% reduction in churn, reinforcing greater loyalty of our customers. These results reflect consistent work of our teams and the trust of our customers. we remain committed to generating sustainable value and building a future even more promising for the security now i would like to give the floor to rafael's perennial our cfo to share the financial details of the quarter and i will be back afterwards for our questions and answers session thank you very much Thank you, Delano. Now starting the details of the numbers of the third quarter. So here we have 2.6 billion in Q3 2025 with a 13% growth year-on-year. The operation has grown 2.4% after taxes, but the main highlight in Q3 is the net investment income with a 55% growth year-on-year, accounting for 28% of our bottom line. One of the main factors I would like to highlight, the volume rate, especially because of the SELEC rate and reduction of the liabilities in Brazil PREV because of IGPM inflation. On next slide, you can see the details of our recurring manager net income. So we had $288 million came from operating results change. If we break down the operating income, the main driver here is the growth of $145 million in return during premiums at Brazil's SEG, in contrast with a carryover of unearned premium revenue from sales done in the past, especially in credit lines. We had another highlight quite significant that Brazil said that has been repeating itself is a reduction in loss ratio here in all the main lines of business showing year-on-year numbers. And lastly, part of that was partially offset by higher expenses of 292 million. In terms of the net investment income, 550 million, this is how much we added, 530 million BRL. Additionally, as I said before, Q3 year-on-year, some of the justifications are repeated in year-to-date numbers. Here you can see 426 came because of volume and rate. Basically, SELIC and the time mismatch in terms of updates of the IGPM in terms of the liabilities in Brazil prep take out 21 million BRL. and 125 million came from a Mark II market, 8 million positive this year, in contrast to 117 million negative in the first nine months of 2024. Now, going into details on the slide number six about our operations per operation, this is insurance operations, premiums written dropped 15% year-on-year in Q3, And then the variation accelerated in terms of premiums in year-to-date numbers for seven, especially because of our performance in rural insurance. If you see the lines that are significant in building... Our revenues, you can see that credit life and life were better in the third quarter year than we were seeing in year-to-date numbers. However, the performance of rural insurance, especially agricultural subsegment, was slightly worse than what we saw in the first half of the year. And this is evident when we see earned premiums or retained premiums. So retained premiums dropped well below the drop in terms of retained premiums, 8% year-on-year and 3% drop in year-to-date numbers. Now, if we look at the quality of that performance here in Q3, year-on-year, there is an increase in the combined ratio, especially because of higher commission ratios and then a reduction in share of agricultural products. insurance in the premiums, agricultural has the lowest commission, and then average commission goes up year on year. We had higher margins in the loss ratio here, and this is an effect considering the comparison basis, and agricultural insurance had a significant reduction in the provision of insurance to settle And here, especially considering the loss ratio, if we look at the third quarter, year-to-date numbers, all rates are behaving very well. And in commissions here, it has a positive effect on the brokerage. Business loss ratio dropped in all business lines. And G&A ratio, general administrative, also dropped a little bit. net recurring net income dropped. And here, the explanation for year-to-date, you can see net income growing 7% year-on-year and also a growth in the net investment income in the year-to-date numbers, 13% growth, same explanation combined with the loss ratio. Now, going to pension business, Year-on-year, dropping 19% in terms of contributions, very much affected by the IOF in allocations above 300,000 BRL. So, we had 4B negative and 9B in the year-to-date numbers. Redemptions increased year-on-year, 20 basis points, and here in year-to-date numbers, it's low. So reserves growing 9% year-on-year in 12 months, a direct reflex of revenues with management fees. And here, the balance, it's growing less in the balance because we are concentrating on lower-risk products, therefore, a smaller management fee. Looking at year-to-date numbers, because of fewer business days in net sales, in terms of financial income, which has not been too favorable for Brazil, especially because of reduction of IGPM year-on-year, and this has been the main driver for the growth of our income, 19% year-on-year and 19% in year-to-date numbers, too. On the next page, here we have premium bonds, Brazil cap, a very good performance, collections grew 5% year-on-year, 9% in the first nine months, reserves grew 6% year-on-year, and then we paid lottery prizes, which grew 42% year-on-year, high of 18% in the first nine months, net investment income very robust, 45% growth year-on-year in terms of volume and rates, especially because of SEVIC rate, and increased Internet income of 130 basis points year-to-date, the same thing. And then the investment income is the main driver for growth. So Brazil cap, so this is that investment income, 31% year-on-year and 4% in year-to-date numbers. Now going to our brokerage businesses, 4% growth in brokerage revenues year-on-year, 5% in year-to-date numbers, and this is the result. Here you can see the breakdown of the brokerage revenues, so 77% coming from insurance. was in 24, and there was a growth in the first nine months, growing to 81.1%, also in higher, an increase in premium bonds. The net margin has grown 3% year-on-year, 2% percentage points in the first nine months of the year because of volume and selling rate. And for this reason, net income grew at a pace that adopted of revenue, 9% year-on-year and 9% in year-to-date numbers. This is the growth of the net income. And to end the presentation, this is our guidance for 2025, non-interest operating result, X holding. The range was between 1 and 4. We delivered 5.9 in year-to-date numbers until September, and this growth will converge back to the range in Q4. Britain Premiers of Brazil said we expected a drop of 4%, up to 1%. In the first nine months, there's a drop of 7.9%. Especially, as I said during the presentation, this performance of rural insurance affected this and is falling short from our expectations, but we are doing our best in all other lines where we can control better the situation to bring this year-on-year variation at least to the floor of our guidance. PGBL and VGBL pension planning reserves of Brazil PREV, so we delivered 9% in the period of nine months ended in September. These are the main highlights, and now I'll be together with Delano and Felipe for our Q&A session. Thank you. . .

Hello, now we are going to start our questions and answers session.