Bb Seguridade Part Sa Adr

Good morning! Welcome to our virtual meeting to present the results of the second quarter of 2026. This event is being recorded and simultaneously translated into English at below right hand side of the screen.

At below right hand side of the screen, the event will be divided into two parts.

In the first part, our CEO Delano Valentim and our CFO Rafael Sperendio will present The main deliveries of the quarter. The presentation and the slide deck in Portuguese or in English can be downloaded from our investor relations website at the address www.bbseguridade.com.br. In the second part of the event, there will be a Q&A session when analysts and investors will be able to request any questions they may wish. I will come back after the presentations 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 present the main highlights of the quarter. Delano, the floor is yours now. Thank you, Felipe. Good morning, everyone. Good morning, all of you with us here today. It's a great pleasure to be here to show you the results of the first quarter of 2026. I would like to start by thanking everybody for joining us for this conference call. I would also like to thank our investors and especially our customers for the continued trust in our company. I would also like to extend special thanks to our employees at Banco do Brasil Salesforce who continue to play a key role In the execution of our strategy and I would like to thank them for their contribution to the performance we'll present here today. Along the first six months of 2026, we continued to operate in a very challenging environment. Despite that, we have kept discipline in the execution of our strategy Seeking more integrated management with all companies of the conglomerates to be more efficient both in the way we serve our customers and in the management of our expenses. I would like to start the presentation by drawing your attention to our recurring net managerial income of 4.4% A billion BRL, an increase of 3.2% compared to the first half of 2025. The net operating income after taxes reached 3.5 billion BRL, an increase of 0.3 compared to the same period as the previous year, supported especially by the drop in the loss ratio in insurance operations, which remains at the lowest historical level and the growth in revenue from management fees accompanied by improved operational efficiency with BrazilPrev. In addition, the net investment income after taxes has reached almost 1 billion BRL, 909.1 million BRL, an increase of more than 16% compared to the previous year. reflecting the increase in the profitability of our financial interests in an environment with still high interest rates. It's also worth mentioning the payout of 3.9 billion BRL in dividends, payout of almost 88%, which represents almost 2 BRL per share, thereby reinforcing our commitment to generating and distributing value to our shareholders. Going slightly beyond the bottom line of our P&L, I would like to highlight some operational indicators. In insurance, retained premiums totaled 7 billion BRL in the first half of the year, remaining practically stable as compared to the year before. In this segment, I would like to draw your attention to the recovery we saw in the second quarter of 2026 for credit life written premiums, a product where we have demonstrated the greatest capacity to develop new solutions to help offset the impacts of the current scenario with high interest rates. In addition to the expansion of corporate credit portfolio, of persons eligible to insurance, which I have been highlighting since last year and in the first half of 2026, added almost 400 million BRL in premiums written. I would like to highlight the implementation of a partial credit life insurance, which allows the parameterization of policy terms by the relationship manager as a way to reduce the effective cost of insurance. And with this, Facilitate the placement of the product in payroll loans. In pensions, we have reached 496.5 billion BRL in reserves, an increase of 10.6% over the same periods in the year before. In a period, we have a positive net inflow of 2.8 billion BRL. This is a A very relevant number considering the market context and the intense competitiveness that we have seen for the pursuit of investors. Finally, in premium bonds collection reached 3.4 billion BRL in a semester. In addition, we paid out almost 42 million BRL in lottery prizes. A growth of 36% compared to the first half of the previous year, reinforcing the engagement of customers with our products. We think that these results once again demonstrate the solidity of BB Seguridade, its execution capacity and the resilience of our business model, despite the still challenging environment. With that, I end my presentation, and I would like to give the floor to Rafael, who's going to give you details of each one of our operations. Thank you so much. Thank you, Delano. Good morning, everyone. So now looking at the details of our results, second quarter, second quarter close 2.2 billion barrel of, Income, a drop of 3%. Year on year, this drop is a result of the drop in investment income. So two factors. The most important is negative mark to market, 12 million after taxes in the second quarter. And as compared to Q2 last year, that was positive by 34 million. and most of the negative market to market is resulting of the opening of the structure. The other factor impacting the second quarter comparing year on year was the quite high, intense high of the IGPM, which is lagging by one month, which is the rate that we use to update the liabilities of plans as defined by BrazilPrev. So in Q2, Andrade Silva, Rafael Augusto Sperendio, Delano Valentim de Andrade, Ricardo Winchelo Vieira Branco In investment income and segregating the time mismatch, so net income is almost flat. So most of the 3% growth when we look at yearly numbers is a result of a smaller effect of the time mismatch, which was much worse last year. And as I said, In a defined benefit plans there is a liability and IGPM is what accounts for most of this results as we see the mismatch a long time 16% in investment income most of it resulting from the time mismatch which is clearly when we break down the net income and its main components. So the 3% growth year on year represent 136 million BRL 126 coming from a net investment income. And it's very clear here 125 resulting from the time mismatch and its impact in the first half of this year as compared to the first half of last year. and the benefit resulting from the high in the SELIC rate was booked this year because it was almost in full taken to mark to market which was 18 million negative after taxes and last year it was 23 million positive. So these are the main effects of the financial result when we look the combination of all companies of the group. So in operational we see a growth of 10 million BRL resulting from a 54 million growth after taxes as we can see increase in management fees resulting from volume as you are going to see and another benefit that we saw this year was a reduction in the loss ratio especially in agricultural sector. So the improvement in these two variables were partially offset by the reduction in retained earned premiums very much because of the worst performance compared to last year in agricultural. So in this quarter, so resulting from brokerage In the correction of the premium bonds and the 39 million negative here, most of the movement is a result of the drop in agricultural insurance premiums. And this variable captures the commissions in reinsurance premiums. So 75% of the premiums that we issue in Agricultural Premiums, and Brazil Seg, as in a volume. There is a direct impact in commissions. Now, operation by operation. First, going to insurance operations, there is a drop of 5% year-on-year in the second quarter. It was 4% in year-to-date numbers, and as I said, most of the drop arises from A performance that is worse than what we had last year in agricultural segment impacting rural and the share that accounts for most of our written premiums and you can also see here in other comparisons a drop of almost five percent. The highlight here in the quarter and both in the in the quarter and year-to-date numbers is home insurance growing on both basis and the other highlight here is our performance in environment in terms of retained premiums so here we isolate this effect of the performance in agricultural insurance that is granted to reinsurance. And we have 5% retention and retained premiums. It's almost flat second quarter considering year on year and the first half, both the quarter and the first half. Performance ratios, we can see an increase in the combined ratio resulting essentially from commission ratios which is a positive point because of the mix and more concentration on products that have higher commission rates and the other factor impacting as I mentioned before is the smaller amount of revenue from commissions from reinsurance which work to reduce this rate so They reduce the acquisition cost and we are always operating considering income. This rate also goes up because of that. Loss ratio was slightly increased because of persons segment and there is better operational efficiency translated into a G&A ratio. Now, in year-to-date numbers, very similar dynamics considering especially the loss ratio in a segment of persons. This is more diluted and there is better loss ratio considering the agricultural insurance. Commissions, same explanation, such as in the second quarter year-on-year, there is better operational efficiency and a reduction of SG&A and so financial results dropped year on year quarter on quarter and also the considering the first half of the years and expenses increase and because of SELIC and IPCA and here there is the update so there has been an increase In these actual numbers and that's why financial expenses went up and offset financial expenses or investment expenses. And then the net income is 2% comparing year on year, the two quarters and 1% down comparing the first half of the year. So it's down year on year and the combined ratio and a drop investment income which was Partially offset but not in full and that's why there is a year-on-year drop by 2% and 1% considering the first half. Now considering pension plans with very robust performance both in the quarter and in the first half of the year, 4% year-on-year, and 7% growth in the year-to-date numbers, getting to 24 million BRL, a significant drop in redemption rates on both bases. So it was 11% last year, both in the quarter and in the first half of the year, last year as a whole, and this rate dropped by 3 percentage points. Quite significant drop in redemption rates. Very, very good performance in terms of net inflows, closing the half with 3 billion BRL. Reserves grew 11% in 12 months, getting to 496 billion BRL in June, 2026. Management fee, you can see here, a less accelerated growth The risk aversion still persists in the market and most of the flow that we've been seeing here is concentrated on lower risk products and as a consequence, lower management fee. That's why there is a reduction on both comparison basis. In terms of operational efficiency, so a considerable improvement, almost 3 points year-on-year, 2.4 if you consider year-to-date numbers, so most operations of the group except for our premium bonds. So here the net investment income second quarter very much impacted but this very sharp high of the IGPM which was not followed by a PCA so investment income was down by 49. If we look year-to-date numbers 41% growth here Precisely because of the effect that I mentioned in the second quarter is diluted for the six months and most of the growth of 41% results from a better effect of the time mismatch, as I said before. And then net income, despite better efficiency and the growth in revenue, it's taken by the Negative investment income, net income drops 19% year on year, but it's not so sharp if we consider the first six months of the year. So there is a 13% growth also favored by the 41% high in investment income. Now, in premium bonds, we had a drop of 12% year-on-year, 3% in year-to-date numbers, despite that there's a 2% growth in the balance of reserves in premium bonds because of the level of redemptions that is a lot slower than last year. In terms of lottery prizes paid, so $18 million paid out, 17% growth year-on-year, $42 million Paid in the first half of the year so far 36% growth. Net investment income on a high of 7% year-on-year because of the better financial margins of 20 BPS and in year-to-date numbers even more intense growth 39% considering the investment margin and last year we had the negative adjustment of hedge which ended up Andrade, Ricardo Winchelo Vieira Branco A drop of 3% year on year and 1% down by 1% if we look at the first six months, same reason explaining there is a reduction in the share of brokerage from premium bonds. In terms of net margin, almost flat year-on-year, up by 0.5 percentage points considering the first six months because of the average rate. And then the stability financial margin, you can see here, if you look year-on-year, the drop in net income agrees with the drop in revenue, but on the other hand, the improvement in year-to-date numbers partially offsets the drop in revenue and net income is stable considering revenues at 0.1%. Now, addressing the guidance for the year. So in terms of actual numbers, in terms of reserve pension plans, so we ended at 11% in the range from eight to 11 in terms of written premiums. So we are half percent below The lowest range and non-interest operating results. So from minus seven to minus three, we ended the year at minus 0.2%, thereby outside the expected range. So from here until the end of the year, looking here at our guidance in terms of growth and reserves, a variation of non-interest operating results. So they're more asymmetrical Tending towards the top here from written premiums, the main driver here from now until the end of the year is going to be our performance in terms of crop insurance. And it's absolutely feasible for us to deliver along the year. Now I end my presentation and now I am going to join Delano and Felipe for the Q&A session. We are now going to start our questions and answers session. And if you want to post a question in writing, please click on the Q&A, which is at the bottom of your screen. We'll try to answer all the questions live during this conference call. And if it's not possible for us to answer them during our video conference, we will answer them in writing after the end of the meeting first. Analysts can ask your questions live by audio. If you want to ask a question, just click on the raise hand button. You can ask questions either in Portuguese and in English and we are always going to answer the questions in Portuguese. Now starting Q&A. So we are going to have Anon from Citibank. Anon, you can... Open your microphone and ask your question. Good morning, gentlemen. Thank you very much for taking my question. First is related to the tax reform. This is something that we haven't been talking much. And in 2027, there will be changes. How are you seeing the potential changes so far? And how can this impact your bottom line? In 2027. Do you see any risks associated to that? And then the second thing is related to credit life. I think April was a very weak month, but May and June, and especially June, considering your results, they were not good months. Do you think this is going to continue from now on? Well, Anand, Thank you very much for your question. So let's start from the tax reform. So there is still a lot of uncertainty in the reinsurance environment, but overall for the country as a whole, it's not 100% clear. So, so far we're not giving you any guidance on the impact And in pension and premium bonds, we are seeing more of the transition considering especially the new regime. But in insurance operations, we still have the potential impact involving the way we manage risk and reinsurance operations. especially because of some changes in tax rules, which are not yet 100% clear. So in insurance, this is where we place the greatest emphasis in a transition to the new regime, not just operational, but also potentially considering the financial impact year on year in the way we designed it and in terms of seeking alternatives And maybe if these changes happen as we expect them to happen. As to credit life, in fact, there has been a very sharp recovery in May and June. And here most of the recovery is due to two factors. One is external. to BB Seguridade at Banco do Brasil, which was a change in a max times for payroll loans with more months. And this by itself gave us, improved the credit origination, so it opens more room for the insurance products to be offered for the life of customers. So this was an external factor that favored the performance. There's an internal factor that is also contributing, as Delano mentioned, and partial credit life. It's now credit life with parameters in terms of time and coverage or coverage times. Considering the more restrictive environment with interest rates at this level, and now for the distribution rate there is an alternative more flexible coverage times to make the product more accessible so that we are more successful in selling the products so these are the two main factors that explain the better credit life product okay Our next question by Antonio Ruetti. So, thank you so much for your time. My first question is related to the loss ratio. So, we can see that your operational result has been changing above the guidance, which is related to some worsening in loss ratio from now on. If we look at the loss ratio in term life and credit life, the difference is really rural, which is considered low historical averages. Could you tell us what you're seeing? So potential impacts of El Nino, are you pricing it to wait for the loss ratio to go back to normal? If I may ask another question. The slightly broader about El Nino. So we are seeing in the guidelines and in practical effects of El Nino already showing themselves present. What are you seeing? Higher demand for insurance? Are you getting prepared with more reinsurance? So the second question, what are the prospects of having a slightly more severe El Nino this year? Well, about the guidance of operational results, so the distribution of likelihoods was more asymmetrical. So, that said, considering the first half of the year, it's very much the result of an effect which is likely to become more difficult in the second half of the year, is because the loss ratio in the first half of 25 was higher than the loss ratio in the first half of 26 and a more normal loss ratio with a smaller carryover of earned premiums and that's why I mentioned the likelihood of us closing the year so it's not wise to review this range because this Gradual convergence was already expected for the second half of this year, but in any way, we're not really ruling out that we might overcome, but anyhow, it's not going to be too soon. As to El Nino, well... We could go on for hours about it, but trying to be objective and simplifying. So how does El Nino impact the main aspects of your question? Well, as to risk management in terms of reinsurance, it didn't change. It remains the same. We defined 15%. So whenever we were In the management of our reinsurance panel, we look at the longer horizon and all the questions considering non-proportional contracts in terms of denials and everything. We look at the longer time range. In terms of demand, no significant changes either. Now, as you said, Some time ago we were discussing the likelihood of it happening, now it looks like it's a given, it's taken for granted, it is going to happen, apparently it's already happening in some regions, and the question now is related to the intensity of El Nino, whether it's going to be more moderate or more severe, and how this is going to affect You're considering the sensitivity to our business, especially considering the center of the country. So considering a draft in the north of the country, in the center or the south and how it impacts our country. So this excess rainfall, it may impact loss ratio. I would focus on our portfolio of damages and how excessive rain might impact our portfolio, more focused in the center and south of Brazil. For the crop insurance, we should look at the longer horizon. For 2026, In terms of El Nino, we don't really see much of an impact this year. We see the basket is covered. The first crop has been harvested, corn. So it's already almost fully harvested. So there might be some marginal effect on loss ratio, but really marginal. for the summer crop. So for 2026, the El Nino effect may be in damages portfolio, but exposure to risk in those portfolios. So considering how big Brazil's SAG is, this is very limited. It's not going to have an impact in our bottom line in 2026. Now, depending on the severity of the impact and how it may affect So we should look at the rainfall, especially during planting September, November this year. So the amount of rainfall and too much rainfall may delay the planting of soybean and may affect the crop next year. And then if Planting soybean is delayed and then the harvesting of soybean is further ahead, thereby compressing the planting and the interim crop. So it's going to be later. The off-season crop with incidents of frosts and they have a potential impact in the loss ratio in the second and third quarters of 2027 it's not certain so this year for 2026 a very limited effect and for 2027 in a second crop so potentially and we need to observe the level of rainfall between September and November this year Thank you, Rafael. Could you explain in terms of damages for 2026? While damage lines in home insurance, is there reinsurance or is reinsurance focusing more on agriculture? We have coverage for excess damages. It's not in the way you are familiar in the agricultural, but we buy stop loss coverage. Thank you, Antonio. Our next question comes from Kyle from UBS. Kyle, you may open your microphone and ask your question. Good morning, everyone. Good morning, Delano, Rafael, Philip. Thank you for taking my question. So first question regarding rural insurance. Can you tell us more about premiums? We have a better performance with a life with 10% year-on-year in terms of growth. So what are the drivers of this specific line and others and the other rural lines? And the second one is related to brokerage crops with a weaker premium in recent. There was a contraction of revenues in broker almost 3% year-on-year. My question is how much you have deferred, thinking of this pace of premiums, what should we expect for next year, and what could be the drivers for us to see it growing again?

Thank you.

Thank you very much for your question, Caio. Caio, since you got back to the theme of rural insurance, and I forgot to mention in Antonio, in terms of impacting our bottom line, So because of reduction in the portfolio, the impact in the crop loss ratio is very small. Today, considering the share of the portfolio in the whole, which is less than 2% of retained premiums, if our loss ratio doubles, it has a 1% impact. So even in agriculture, where it would be more impactful, it's still very much limited for the numbers as a whole. Now, your question about Britain premiums. Today, our main difficulties in rural segment is very much related to crop insurance, especially for soybean and corn crops. And how does it reflect on insurance company? As we expand the portfolio of products, so crop insurance today that is suffering the most is very much limited to the modalities of costing, especially in grains that is suffering the most. And that's why we see this drop year on year. When we expand to lien and life, so that our credit lines to cross-sell the products for rural lien insurance, we see the costing investment lines and in life, So we see costs. So also in costing, we can go in renegotiated. In terms of crop renegotiation, the cost of agricultural insurance, that's it. So if they had insurance or they harvested and they sold the crop. In renegotiated, the only risk that we can somehow cover, e-farmers life insurance risk needed for renegotiated. We have farmers credit life insurance, that's why it's better than the other two lines despite the higher interest rates. Now, I would say that in rural insurance, We are not really certain in terms of the second half of the year considering. But I would say that most of the growth that is easier to be captured, it was captured in the first half of the year. So we can estimate that we can and keep the same base that we have for farmers life insurance. Now there is a combination of events and the way the higher interest rates between 1425 and how it affects our business. There's a combination between insurance Thank you for watching. So as you see the faster pace of growth, we need to count on a slow down in interest rates. I'm not talking about spot. So interest rates to have slightly more breadth for the lines related to credit. So for now and for the time being, Considering all the geopolitical issues, the environment is very volatile. And we also are going to have elections in Brazil in the second half of the year. So it's very difficult for us to make any decisions Predictions in terms of timing, and so we need to wait and see. And we hope that geopolitical issues lose strength in the second half of the year. And once we define the elections, how this is going to impact the curve so that we are slightly more at ease in terms of our lines that depend on credit originations. Thank you, Kyle. So now Daniel Vaz from Safra is the next one to ask a question. Daniel, good morning. You may open your microphone and ask your question. Good morning, Philip. Thank you very much for taking my question. Good morning, Delano and Sperendio. I would like to focus on rural insurance, and I think some of my colleagues have partially asked this question. I was looking at your Subscription results today, two-thirds come from rural. Looking in previous years, that was 50%. And most of the underwriting is related to the loss ratio. There is an effect of the mix. There is more farmer's life and lean. So there's a very high level in the segment. Looking, looking, crop insurance, 35, 40%, today is 20, and lean is 16, and farmer's life is slightly lagging behind. Thinking of the sustainability. So I would like you to hear the likelihood of these three lines, whether it's below expected and whether it's going to become normal for any of those lines. We try to model that and analysts have been getting it long for better. Your loss ratio is below historical averages. So is it going to go back to normal or is this the new normal? Daniel, thank you for your question. I'm going to try and answer it in parts because the reasons are different considering the three products. For rural and farmer's life, we are not expecting much change. For Farmer's Life, we had an atypical change when we had 700 billion BRL for Farmer's Life that died because of COVID. And that's something that happens and we hope this never happens again. We don't expect that kind of farmer's credit life insurance. So there may be some unmaterial oscillation because of damages. So wind, hailstorms that might affect storage and the warehouses. And we are not really expecting that. That might be a one-off thing. Now, crop insurance. As I answered to Antonio, considering El Nino, so insurance companies are more sensitive to La Nina than El Nino, this is where we have the greatest uncertainty. And we are coming from three very favorable climate cycles. This is not usual considering current levels. We have historical laws in terms of loss ratio in crop insurance. So the likelihood and the distribution is more asymmetrical. It's difficult to improve. And the expectation is for it to increase. And thinking about Antonio's question. So considering La Nina and sensitivity, so there is a substantial increase. Now, when we look at the longer timeframe, the loss ratio is around 60 to 70%. So naturally, it would be average It's bound to happen in a short time span and it might be more gradual. Thank you very much. Thank you, Daniel. Our next question comes from Marcelo Mizari from Bradesco BBR. Mizari, you can open your question, your microphone and ask your question, please. Thank you very much for taking my question and now combining themes. and looking at rural insurance. So first, Rafael talked about the impacts. So considering the provisional measure, you are not expecting any effect from the bill for rural credit that might impact the risk appetite. My question is, considering this and thinking about the operational dynamics of the bank, you talked about the results. So before interests, in terms of the guidance in premiums, how do you see the premium guidance for the year? Also, because it hasn't been realized, how do you see this? Is it going to be more favorable in the second half of the year? How can we see that? So, Ms. Ari, thank you very much for your question. So, first, the impact of the bill. It's difficult to quantify impacts. So I can quantify as positive, considering that now there are no more uncertainties associated. So farmers were waiting for the definitions. How does it impact? So, sometimes farmers in arrears that were waiting for this bill, once it's defined whether they settle the loan or whether they are eligible to the provisional measure. So, They will again become eligible for the product for summer rates. And we somehow expand the number of customers that are eligible considering co-op insurance. Now, giving you numbers is very difficult for us. About now, about refunding, considering the provisional measure and only farmers credit life can be measured here with a more positive effect resulting from the provisional measure is the limitation of customers that can take credit. As to premium, So I circumvented in a presentation considering when I explained the guidance we're just half a point below the range. So going back to the range is absolutely feasible in the second half of the year. Now, most of this movement of convergence depends very much on the recovery of Crop Insurance, which, in principle, we can't really see very clearly in terms of the level of premium origination that we can see in the second and third quarters, especially this month and next month. So for now, we are very conservative. And we do not yet have any more positive prospects of bringing it back to range, considering the lower half. Thank you, Marcelo. Next question comes from Ricardo Bush Pigo from BTG. Good morning, Ricardo. Please ask your question. Well, thank you very much for taking my question. The subvention for a crop insurance program, so combining some concerns of a stronger El Nino, we're seeing more reinforcement of the program or Creating a public-private catastrophe fund that would serve to offset climate losses. How could this catastrophe fund affect BB Seguridade? Thank you for your question, Ricardo. Well, there was a reduction, really. and we should consider what was budgeted and what was truly spent in the subsidy for crop insurance. So we are not expecting any material reductions in terms of what is going to be effectively spent for the subsidy program. Yes, there was a considerable reduction In insured area, it's something like 15 to 18% and it went down to 7% with a low bias. It's difficult to tell how much of this results from the subsidy program or whether this is a result of the change in the matrix of funding for farmers. So this is something that we need to consider. The catastrophe fund, this is an alternative that the government has been studying. We had this and it was not as expected. Difficult for us to go into details because it would be too early. So it might not be the right time for us to quantify the impact. So there are discussions involving mandatory insurance, wood lines subsidized by the government, the Catastrophe Fund, and there are many things under discussion, but nothing has been, has reached the final decision yet. Thank you, Ricardo. So, Goldman Sachs, you may ask your question, please. Thank you for taking my question. So with Brazil Prev, I would like to change the changing dynamics between the first and second quarters. You talked about the end of the competition with exempted head and effect. And what about the second quarter? So considering net inflow, is it any different from what you're expecting for the second half of the year? Hi, Thiago. Thank you very much for your question. Well, There are many factors contributing. So the high interest rate environment ends up favoring our businesses and provides slightly more stability. The side effect is that most of the flow goes to low risk strategies with lower prices. But in terms of volume, Considering favorable environments. So first of all, we've been seeing that most of the impact of last year, considering incidents of IOF and considering the amounts, this very much affected the management and the calendar that we had in terms of distribution, which was designed not taking that assumption into account. So the entire mechanism of induction and the incentive program for distribution was designed based on IOF at a certain level. And so at some points in time, we didn't even have the structure, not just us, no one in the market had the structure for retaining the IOF. Sometimes we would suspend The factor number two, and we can take a look at time. This is very similar to what we are seeing in terms of interest rates and inflation and what we saw in 2015-16 and the level and behavior of pension operations was very similar. If there is an initial movement where customers are more averse to risk because of shocks, so as the structure kind of stabilized at a higher level and we take the risk from funds, customers are slightly more In this environment, competition with equity, privates, it is more favorable for fixed income bonds. So there is less competition in certain class of assets and this is combined. As I said, to less interest on private bonds and incentivized bonds. So we don't know how much came forth to each one of these factors that are more favorable than in the last two years. Thank you, Rafael. Thank you, Thiago. Now we have a question from Anaí Rios from Santander. Anaí, please, you may ask your question. Hi, good morning. Can you hear me? Hello, great. Good morning. Thank you, Filipe. Good morning, everyone. Thank you very much for taking my question. Well, my question is about commission rates, and Rafael talked about the dynamics that are driving up that rate. There is a mixed effect and less commissions from marine insurance, but considering that we are seeing a consolidation in the mix as today, do you think we should still see an increase in commission rates in future periods, or are the levels today more or less normal for you? Anae, thank you for your question. Well, there are two things, and you summarized well. So, when we look at commissions of Brazil Seg, there is an increase resulting from the change in mix with loss of the share of crop insurance which is the product with the lowest commission and increase in the share of home insurance sometimes even credit life compared to crop insurance in the building of the premium which leads to higher average commissions and even though this is in principle negative for the insurance company it has a positive impact in a brokerage company So part of the higher commissions is negative. When we look at the numerator of that number, we see acquisition costs of commissions paid by the brokerage frauds and there is a reduction factor, which is the commission received by the premium of reinsurance, especially for crop insurance. So the reduction of written premiums in a crop insurance so there is a lower volume of commissions coming from your insurance and as a consequence there's a lower share of this commission reduction in commission rates and this would be negative from now on there is no indication that that increase in commission rates is likely to persist in a longer horizon time. So our expectations with a reduction of crop insurance is precisely of a reduction again of that rate considering the longer time span. Even if recovery doesn't happen, the share of crop insurance considering total numbers will not be sufficient to take this number to an even higher level. Thank you very much. Thank you, Anaí. Now we have a question from Carlos Gomez Lopez from HSBC. Hi Carlos, good morning. As to contracts, we do not have any horizon for the beginning of negotiations, and we did not talk to the bank about that, but we are going to let you know if we have anything new coming up in that front. Carlos, as to the rates, In principle, so it's 1425, so soon there will be a COPOM meeting and consensus we are betting on a drop of 25 BPS. If that becomes true, if that happens, there is no indication that the central bank might drop interest rates At the sharper rate that we had in the beginning of the year. So we might end this year with a silly great very similar to the one that we ended 2025 with the impact that affected the results of 2025 of the year. We had the guidance expectations of 20 for 2026. So we expected that financial would suffer a lot now for future years. In our vision, the curve is pricing a risk premium that is very high, way above what we think would be reasonable considering the foundations. But today it's very hard for us to estimate how much premiums will be Because of the uncertainty in the second half of the year, considering the political scenario, not to mention the entire geopolitical scenario, that has been affecting the country, creating some inflation, and we can see the effect being reflected in our structure. So our expectation is that there will be a reduction. Now, how big this is going to be? It's very hard for us to estimate now. Yes, we are going to start discussing the budget this month and we are going to use the assumptions of the economic scenario for Banco do Brasil following Banco do Brasil, but we will begin budgeting over the next few days. As we have no more questions in line by audio, We just have one question in the Q&A regarding our admin expenses that we have seen in some of the companies of the group, better operational efficiency. And the question here is how much of that is recurring and what we expect in terms of management of expenses. I'm going to take the opportunity and give you my final message. So this control of admin expenses is part of our day-to-day work, and I believe that in the second half of the year, we are going to focus on that with great emphasis. And as you've been able to see, especially in the answers that we have given, and as Rafael said, we are very confident in our business model, the sustainability, resilience of the businesses, We know that we are faced with a very complicated scenario, not just in Brazil, but also internationally. Geopolitics influences lots of volatility. We have just had the provisional measure of renegotiation of rural debts, and we believe that somehow this will bring back many customers and may favor our business. And even so, we are going to work very carefully So that we may continue delivering the robust results that we have been seeing so far. A special highlight after the closing of the first half of the year, we had half a trillion BRL in reserves in Brazil. Perhaps this is a historical landmark, not just for our company, but for entire private pension market in Brazil. And I believe that We still have a lot to build. We're working together and very intensely with Banco do Brasil to try and develop new journeys, new products, to have a better product mix, to try somehow fill the gaps that we have already seen here, as we mentioned, that arise especially from high interest rates that end up impacting the credit cycle and as a consequence, some of our products. The idea is to keep up the good work and the hard work to continue delivering the same very good results. I would like to thank your attendance to our earnings release video call. I'd like to thank our shareholders and customers for their trust in us. Thank you so much. Well, now we are ending our earnings release video call. and so there is a short research after the event just to hear what you think about it thank you so much and have a