BB Seguridade Participações S.A.

Good morning.

Welcome to our conference call to present the results of the first quarter of 2026. This event is being recorded and has simultaneous interpretation into English. To listen to the audio in English, please press the interpretation button at the low right-hand side of the screen. This event will be divided into two parts. In the first part, Our CEO, Delano Valentin, and our CFO, Rafael Espiritu, will present the main deliveries of the quarter. The presentation, in Portuguese or English, can be downloaded from our investor relations website at the address www.bbcgrid.eri.com.br. In the second part of this conference call, we are going to have a questions and answers session when analysts and investors will be allowed to ask questions. I will come back after the presentations to give you the instructions to ask questions. Now I would like to give the floor to Delano, who is going to talk about the main highlights of the quarter. Delano, please, the floor is yours. Thank you, Philip. Good morning. Good morning, everyone who is here with us. It's a pleasure to be with you today to present the results of the first quarter of 2026 for BB Seguridad. First, I would like to thank everybody for being here for your attendance, everyone on the live streaming. I would like to thank the investors and especially our customers for the trust that they place on BB Seguridad. This support is fundamental for our work. I would also like to extend my special thanks to all our employees and sales force of Banco do Brasil. You are the ones who make the difference in the day-to-day of our business. And once again, you rocked. We have had a very challenging beginning of the year. Still, despite the adverse macroeconomic scenario, we were able to stand out on several fronts. This has been only possible thanks to the well-defined strategy and strong discipline in its execution, a work that began as early as November last year. Within this context, I would like especially to highlight our performance in pensions, a segment in which we have played a leading role in the first three months of the year, accounting for more than 50% of the market's positive net inflow. In premium bonds, we have also had important advances. March was one of the best months in our history, possibly the best since our IPO. In the insurance vertical, we recorded relevant achievements, with emphasis on the homeowners' and farmers' golden life products. We are fully aware that the rest of the year will remain challenging, However, we are confident that the solutions we are delivering, which originally had the main objective of adding value to the business, but they have proven to be extremely important also to mitigate some of the effects of the current macroeconomic scenario. I am convinced that we will continue to constantly evolve and deliver consistent results. such as the ones we are going to present here today to you. Our managerial net income reached 2.2 billion BRL, a growth of more than 11% compared to the same period last year. The operating net of taxes grew 2.2%, mainly reflecting the growth of revenues with management fees and the improvement of BrazilPREP's operational efficiencies, the good performance of brokerage revenues, and the reduction of the loss ratio in our insurance operations. In addition, we had a very relevant contribution from the investment income, which grew almost 60% compared to the previous year. In our assessments, these are robust numbers, especially considering the current environment. of high uncertainty and volatility, once again reinforcing the resilience of our business model. Going beyond the bottom line of our financial statement, I would like to highlight some operational implications. In the insurance segment, total retained premium worth 3.6 billion BRL in a period remaining practically flat as compared to last year. This contrast with a line of written premiums, which demonstrated a slow decrease. In view of the current moment of interest cycle, we have adopted measures with the objective of preserving premiums earned by the insurer, among which I would like to highlight the increase of risk retention in agricultural insurance, which went to 25%. and the expansion of the corporate credit portfolio eligible for lender's insurance, an initiative that I have been highlighting since last year and which, in the first quarter alone, has contributed $182 million in written premiums. Inventions reserves reached a balance of $484 billion BRL in March 2026, very close to the mark of half a trillion BRL, with a growth of more than 10% in 12 months. As I have mentioned before, we have had a very solid performance in Banco do Brasil's network in terms of collection of pension, which, combined with a significant reduction in outflows, led to a net inflow of 3.9 billion BRL. It's worth remembering that in the same period of the previous year, we recorded a net outflow of approximately 1.5 billion BRL. This performance is the result of a commercial strategy designed with Banco do Brasil's network still in November 2025. Finally, premium bonds collection grew almost 8%, reaching 1.8 billion BRL. We have achieved leadership in contributions and maintained the leadership in reserves. Also in this segment, we paid out 24 million BRL and Rappel prizes in the quarter, a growth of almost 55% compared to the same period last year. With this, I end my presentation and give the floor to Rafael, who's going to give you details more details about the results of each one of our business lines. Thank you very much. Thank you, Delano. Good morning, everyone. So, I'm going to start on page number four. As Delano said in his presentation, the net income of 2.2 with 11% growth year-on-year, quite significant contribution of that investment income. Now, ever since we are listed, this is the third cycle of decreasing interest rates that we are going through. And as far as we know, this cycle of cuts is likely to be slightly more gradual and slower in terms of interest rates, which is positive for the company's bottom line and when we have more time to react. On the other hand, into slightly more difficult environments, commercially speaking, especially in lines that depend slightly more on credit originally, especially in terms of credit life and rural insurance. So very good results, positive investment income, slightly more than $180 million, contributing with almost 23% to the net income. Now, breaking down the results for the two main components, as I said, 224 growth in the net income with a significant contribution from the investment income, considering rates and excluding mark-to-market, sorry, 75. Now, there's an effect of the leak and the cost of liability in addition to the update of deferred numbers at Brazil PREV considering IGPM deflation. So there's a time mismatch. Remembering that the benefits are updated by inflation rates and liabilities with a lag of one month. I'm not going to place so much emphasis on 180 million, and this ends up being zero. So this is a time mismatch. It's one month of lag. because there was a negative, it was negative in the first quarter last year, positive first quarter this year, but it tends to be flat in the long term. And here, also it's slightly less negative this quarter, but the main highlight is the SELIC and the volume and rate charge X mark to market. So, The change in operating results was 37 million BRL+, especially because of credit life and rural insurance bills were the main drivers for the lower loss ratio was 59 million in the bottom line. So, 25 million here for the growth of the net income was the growth of revenues from management fee at Brazil Press because of the exceptional performance that we had in terms of net inflow as part, in terms of net inflow, and this contributed to the growth in brokerage revenues, adding 11 million after taxes into our bottom line. Now, going into operation by operation, broken down with more details, insurance, so 2% drop year on year, very much influenced by the projects that are more credit dependent and a better performance of the projects that are not dependent on credit origination, especially home insurance corporate, with a growth of 22% home insurance and corporate growing 4.5%. Life is the only project that is not related to predatory germination, which ended up performing, having a negative performance, minus 4.9%, but this is the portfolio we are working on to fully revitalize this line. In terms of retained premiums, it's kind of flat year on year, very much influenced by the breaking down of written premiums, the smaller contribution from crop insurance, it's only 25% of the risk for us considering the measures that we use to try and attenuate the downwards effect. And especially here because of increasing risk retention in crop insurance that is now is 25%. if we consider the composition of the portfolio. So Credit Life, Delano mentioned in his presentation expansion of the addressable portfolio, we ended up having a good performance in the segment, in the corporate segment, which kind of attenuated the drop and that we see some difficulties in the segment of individuals. With the composition retained there in premiums, we grew year on year. And in the build-up of the results, we see a slight worsening of 20 pps in the combined ratio. And this worsening is because commission ratio explained by two factors. Number one, and the main one, is related to what I said before, the dynamics, and especially Crop insurance, so with more risk retention, has led us to have a slower volume of revenue of premiums for reinsurance. Here, when we talk about crop insurance, and this line in reinsurance is a reducer of acquisition expenses, and this was the main driver explaining this higher commission ratio. The second but slightly less important is the composition with a higher share of crop insurance with lower commissions. So if we look at the composition of written premiums leading to slightly commissions which kind of fully offset the drop in loss ratio and what we have here is an increase in affected by more expenses in the software. So, here, the investment income with a year-on-year up by 1%, and then the manager net income with a Y09 1% compared to last year. Now, moving to pension, this is an operation That was the main highlight in this first quarter, as I said in the beginning, with contributions growing 9%, getting to 15 billion BRL, very good quality. So net inflow was 3.9 billion, with an outflows of 1.5 that we had in the first quarter last year, a significant drop in the rate of redemption, which has been an important factor that led us to a 10% growth in our reserves, of our pension reserves. So revenues from management fee grew 6% year on year because of the reduction in average management fee, which is related to this movement of concentration of allocation in lower risk products, that covers a lower management fee, and that's why we say the solution on the average management fee that is built. And then a lower operational efficiency, a two-point profit average management fee, and then added to a substantial growth in the net investment income of 270 million, coming especially from what I said of deflation of the IGPM with a lag of one month added to the high in IPCA almost one point above first quarter last year. So you see the growth in revenues and net investment income driving the 51% growth in our managerial net income in the first quarter year on year. Now, in our premium bonds, an 8% growth year-on-year in collections, a 4% growth in our premium bond reserves in 12 months. This is a result of the longer times for the bonds, so more lottery prizes paid. We paid out 24 million BRL in the first quarter, 50% growth year-on-year, a considerable improvement in the net investment income, almost twice bigger than the net investment income in the first quarter last year. with 2.1 points, and it's worth remembering an important factor here. So, from 2024 to 2025, we transitioned with pre-locked exposure because of volatility in the macroeconomic scenario in late 2024, and this curve closed very fast in January, and you're going to remember we had a negative adjustment of hash that impacted the net investment income of Q1 2025. So this was one-off effect, and then it normalized in the second quarter, but it kind of explains most of the quite significant growth in the net investment income year-on-year, which was the main driver here for the growth in the net income. And so 81 million with a 51% year-on-year growth. Finally, our brokerage businesses with a growth of 1% year-on-year, and as I said, because of collections in pension plans, and so it went from 9.6% to 11.4% last year to first quarter this year. Net margin was 61.7%. This is a quite significant contribution in the investment income because of the integrality of the corridor. Financial incomes are located in post-fixed instruments, and that's why the net income had a growth that was higher than the revenues represent up year on year because of this data. net income margin and better investment income. Lastly, our guidance. So, considering the three indicators that we have, we performed within expected in terms of PGBL and DGBL pension plans with Arizona Brazil PREV. And so, with H211 and we closed at the top. In terms of recent premiums for Brazil's tech, we are within the range, a drop of 3, 2.3, and we ended with a drop of actual numbers of 2.3% in the first quarter, non-interest operating results. So we expect for the drop of 7, between 7 and 3%, and we ended the first quarter with a growth of 1.3%. Very good performance, but for now, considering all the uncertainty that still remains especially related to climate so we are going to have a predominance of El Nino in the second half of the year and yes this may affect winter crops and the loss ratio in terms of home insurance and corporate insurance and 2025 is the weakest comparison basis that we have, even though we exceeded, so we should be very cautious, and there's nothing that will lead us to review this range, and so we'd rather wait and see what happens during the year to see whether there is an indication that will lead us to review this range, even though the likelihood today is to keep we are likely to remain on the top portion of this range. So, this is my presentation and I'm going to join Delano for the questions and answers session. so so

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