apresentação institucional inglês v4 - bb · market leadership 24.9% 20.1% 29.1% 15.4% 33.1%...
TRANSCRIPT
Institutional Presentation
1Q13
Largest Insurance Broker in Latin America
Leading Presence in Other Segments, such as Premium Bonds, Property and Rural Insurance
Insurance Operations, Pension Plans and Premium Bonds Managed Through Private Partnerships withGlobal Leaders
Largest Life Insurance Company in Brazil
2nd Largest P&C Insurance Company in Brazil
Fast Growing with High Profitability
Largest Insurance, Pension and Premium Bonds Company in Latin America
BB Seguridade
Successful Track Record
* Strategic moves announced after the release of first quarter results. Pending approval by regulators, supervisors and inspectors.
1981
Creation of
BB’s
insurance
operations
1992
Creation of
Brasilprev
1995
Brasilcap’s
inception in
partnership
with
SulAmérica,
Icatu and
Aliança da
Bahia
1996
Creation of
Brasilveículos in
partnership with
SulAmérica
1999
Partnership
with Principal
Financial
Group in
Private
Pension Plans
2011
Established
Joint Venture
with Mapfre
2008-2011
Ownership
restructuring of
BB’s insurance,
Pension Plans and
Premium Bonds
division
2012
Creation of BB
Seguridade
1987
BB Corretora’s
establishment
2013*
IPO BB Seguridade
Equity investment in IRB –
Brasil RE
Brasildental
Partnership with
Odontoprev
CEOMarcelo Augusto Dutra Labuto
CEOMarcelo Augusto Dutra Labuto
Finance and Investor Relations Directorship
Leonardo Giuberti Mattedi
Finance and Investor Relations Directorship
Leonardo Giuberti Mattedi
CommercializationDirectorship
André Luis Cortes Mussili
CommercializationDirectorship
André Luis Cortes Mussili
Products & Communication Directorship
Ângela Beatriz de Assis
Products & Communication Directorship
Ângela Beatriz de Assis
Executive Officers
Board of DirectorsBoard of Directors
Shareholders General MeetingShareholders General Meeting
Fiscal CouncilFiscal Council
Audit CommiteeAudit Commitee
Organizational Structure
BB CorretoraBB CorretoraBrasilcapBrasilcap
100% Total
BB SegurosBB Seguros BB Corretora HoldingsBB Corretora Holdings
BB Mapfre SH1
BB Mapfre SH1
Mapfre BB SH2Mapfre BB SH2
BrasilprevBrasilprev
Free-Float
74,9%BB Seguridade Stake in
Terms of Total Shares (%)
49,9%
50%
100% Total
50,0%
49,0%
50%
74,9%
49,9%
50%
66,7%
49,9%
67%
100%
100%
100%
BB Seguridade Stake in
Terms of Voting Shares (%)
Board of Directors
Representation (%)
66,25%33,75%
Shareholders Structure
IRB –Brasil Re 1
IRB –Brasil Re 1
Brasil dentalBrasil dental
20,5%
20,5%
20%
74,9%
49,9%
50%
Strategic moves announced after the release of first quarter results. Pending approval by regulators, supervisors and inspectors.1 Participation in the amount of shares in IRB – Brasil Re after the Extraordinary Shareholders Meeting, expected to ago/2013.
Corporate Governance OverviewBoard of Directors
SH1Life
SH2P&C
BrasilprevPension
Plans
BrasilcapPremium
Bonds
18 members
9 appointments
9 appointments
Companhia de Seguros
Aliança do Brasil
6 appointments
6 appointments
Mapfre Vida S.A
6 appointments
6 appointments
Vida Seguradora S.A
6 appointments
6 appointments
18 members
9 appointments
9 appointments
Aliança do Brasil Seguros
S.A
6 appointments
6 appointments
BB Mapfre Assistência
2 appointments
2 appointments
Brasilveículos
6 appointments
6 appointments
16 members
8 appointments
8 appointments
3 appointments
3 appointments
12 members
8 appointments
2 appointments
2 appointments
4 appointments
Mapfre Affinity
Seguradora S.A
6 appointments
6 appointments
Mapfre Seguros Gerais
S.A
6 appointments
6 appointments
Presidents, Vice Presidents and Directors
Broker
3 members
3 appointments
Source: BB Seguridade and Banco do Brasil
Market Leadership
24.9%
20.1%
29.1%
15.4%
33.1% 33.8%
28.2%35.6%
24.9% 31.2%
Market Share of BB Branch and BB Seguridade (%) – Positioning
Outstanding distribution capabilities...
BB’s Branches Market Share: 24.1%BB Seguridade Market Share: 23.4%BB’s Branches Market Share: 24.1%BB Seguridade Market Share: 23.4%
North
(5.3% of Brazil’s GDP)
Mid-West
(9.3% of Brazil’s GDP)South
(16.5% of Brazil’s GDP)
Southeast
(55.4% of Brazil’s GDP)
Northeast
(13.5% of Brazil’s GDP)
Source: Company, Susep and IBGE1. Considering market share of Life, Casualty and Auto insurance premiums and total contributions from Pension Plans and Premium Bonds2. Brazil’s GDP as of 2011 according to IBGE
BB branch market share (Feb/13)
BB Seguridade’s overall market share¹ (04M13)
1º
2º
1º 1º
1º 1º
3º 1º
1º1º
Benefits from BB’s leadership in high growth insurance markets
Broker: exclusive access to BB network…supported by the largest banking network in Latin America with multiple relationship channels
5,394
18,165
138
60,220 20,000
59 mm clients
Branches
ATM
Banking Correspondents
External Brokers
Partnerships
Banking Channel Non-banking channel
28,380
Shared
Sound non-banking network spread all over Brazil
Source: Banco do Brasil
1º
4.290
Points of sale
� Enhanced transparency and certainty to minority shareholders
� BB Seguridade’s commitment to reaffirm its best corporate governance practices
� Creating a committee related parties, composed of at least one independent member, who must have a favorable vote for approval and signature changes in contracts with related parties
Related Parties’ Transaction Policy
Broker: exclusive access to BB network
� Exclusive access to Banco do Brasil’s network
� 20-year term
� No termination clause
� Signed in January 2013
� Access to BB Corretora
� Obligation to sell their products through BB Corretora’s banking network
� Remuneration: fixed percentage of policies, in operational contracts signed
product by product
� Relationship managed by shareholder agreements with 23-year term for
PFG, 20-year term for Mapfre and indefinite for Icatu / Aliança do Brasil
BrasilprevSH1 SH2 Brasilcap
Backed by BB and Private Partnerships
SH1 Life
BB Mapfre SH1
� Life comprehends life insurance, personal accidents and credit-life insurance
� Life insurance products in Brazil are different from other modalities abroad. It is a non-accumulative product, which means that if a person does not contribute
anymore, the coverage will be suspended
� Life insurers sell protection for events related to a person’s life, such as death protection (pay a fixed amount on the death of the policyholder), living benefit
products (income stream for retirement to the policyholder), personal accidents and savings-type products (insurance contracts that contain a trigger connected to
a person’s life)
� Credit-life insurance allows for the liquidation of a debt or of a number of debt installments in the event of natural or accidental death or, in some cases, depending
on the product, unemployment or income reduction
Life
� Housing insurance is related to mortgage loans. In the event of the death of the insured, the insurance allows his or her family to retain the real estate and the
financial institution to receive full payment of any debt owed on the property. A housing insurance policy can also protect contractors against damage to real estate
Mortgage
SH1 Life
BB Mapfre SH1
Life (Insurance Premium) (R$ mm)
BB Seguridade: +13,5%
Industry: +17,2%
1Q13
1,072.9
17.3%
1Q12
945.6
17.8%
Market Share
Premiums
1Q13
222.7
64.4%
1Q12
92.9
60.6%
Market Share
Premiums
Rural (Insurance Premium) (R$ mm)
BB Seguridade: +139,7%
Industry: +125,3%
1Q13
27.4
5.4%
1Q12
19.9
4.9%
Market Share
Premiums
Housing (Insurance Premium) (R$ mm)
BB Seguridade: +139,7%
Industry: +125,3%
� Rural insurance protects farmers against adverse natural events, up to a maximum limit. It also covers cattle, farmer’s equity, farm assets, credit to commercialize
production, and the risk of death of producers
Rural Insurance
SH2 P&C
Mapfre BB SH2
� The products of this segment are customized to insure individuals and companies against potential losses in their property assets – for example, to insure a
company’s machinery or facilities or an individual’s house against robbery or fire
� Property insurance protects an entity or a person with an interest in physical property against its loss or the loss of its income capabilities
� Casualty insurance protects an entity or a person against legal liability for losses attributable to injury to other people or damage to the property of others
Property
� Auto insurance is an insurance purchased for cars, trucks, motorcycles, and other road vehicles, which is primarily used to provide financial protection against
physical damage, bodily injury resulting from traffic collisions and against liability that could arise therefrom
Auto
Auto (Insurance Premium) (R$ mm)
1Q13
1,040.0
15.7%
1Q12
806.5
15.0%
Market Share
Premiums ∆ %
BB Seguridade: +29.0
Industry: +22.9
Brasilprev
� Complementary pension plans are an optional product giving individuals additional financial protection outside of public retirement plans
� The two most important products in this segment are PGBL (Plano Gerador de Benefício Livre) and VGBL (Vida Gerador de Benefício Livre), which are pension plans in
which individuals contribute during their working lives in return for receiving a monthly income or a single payment usually upon retirement
� PGBL products have a greater attractiveness to the middle class due to tax advantages (people who chooses the full statement of the income tax report can deduct the
contributions from the taxable income)
� VGBL products have a greater attractiveness to high-income customers due to their succession appeal. The succession process in Brazil is costly and time consuming.
However, beneficiaries receive the resources quickly after the death of the policyholder
Pension Plans
Pension Plans (Collection) (R$ mm)
1Q13
6,088.2
32.1%
1Q12
4,408.2
29.5%
Market Share
Collection ∆ %
BB Seguridade: +38.1
Industry: +27.1
Brasilcap
� Premium bonds provide people with a way of saving money while also giving them the opportunity to profit from lottery premiums, in which randomly-chosen savers
are awarded prize money. A below-savings-account yield in capitalization plans allows people to participate in the lotteries
� There are similar products in Spain and United Kingdom
� There are 4 different kinds of premium bonds in Brazil: traditional (the objective is to refund the contributors at the end of the term if the contributor has made timely
and accurate contributions), programmed purchase (intended to facilitate the acquisition of a product or service at the end of the period, enabling the contributor to
choose between the purchase or withdrawal of their savings), popular (enables the contributor to participate in the lottery, but there is no refund of the amount
contributed) and incentive (a plan linked to a promotional event or a prize contingent on a behavioral or commercial event, without the refund of the entire amount
paid)
Premium Bonds
Premium Bonds (Collection) (R$ mm)
1Q13
1,093.5
24.6%
1Q12
863.7
23.0%
Market Share
Collection ∆ %
BB Seguridade: +26.6
Industry: +18.1
Commercialization of BB Seguridade’s products in BB’s retail banking base
BB’s client
Gross premium
Reimbursementof costs / expenses
Banking service fees
BB Corretora
Brokerage
Commercialization process
Brasilprev
Brasilcap
SH1
SH2
BB Corretora
� The brokerage businesses consist in intermediating the sale of insurance products between the insurance company and clients
� Due to the intermediation services, the broker receives a commission, which is calculated as a % of the value of the premium
� There are no direct underwriting risks involved
Brokerage
Highlights
Net Revenues (1Q13)5
(R$ mm)
Net Revenues (1Q13)5
(R$ mm)
% of BB Seguridade
adjusted net income 10
% of BB Seguridade
adjusted net income 10
Adjusted ROAE6
(1Q13)
Adjusted ROAE6
(1Q13)
RankingRanking
Adjusted net income
(1Q13) 7 (R$ mm)
Adjusted net income
(1Q13) 7 (R$ mm)
Business LinesBusiness LinesSH1 Life1
SH2P&C2 Pension Plans Premium Bonds Brokerage
53.7% 63.4%28.4% 4.4% 4,460.3%
6,083 1,0931,112 1,647 388
95.7 16.9133.1 12.3 193.6
1st1st
34.7%
454.9 6 8
1st1st3
1st9
Insurance, Pension Plans and Premium Bonds Distribution Holding
21.0% 3.7%29.3% 2.7% 42.5%
Source: Company fillings and Susep
1. SH1 comprises Life, Housing and Rural Insurance / 2. SH2 comprises Auto, Casualty and Others (except for Housing and Rural Insurance) / 3. 1ST position: Represents BB Seguridade’s Life products / 4. 2nd position: Represents BB Seguridade’s P&C products / 5. Premiums written for BB Mapfre SH1 and Mapfre BB SH2; Collections for Brasilcap; Contributions for Brasilprev; Operational revenues for BB Corretora / 6. Considers adjustments for extraordinary items / 7. Considers the net income attributable to BB Seguridade / 8. BB Seguridade’s net income includes R$ 3.3mm related to holding revenues/expenses and taxes, which are not shownabove / 9. 1ST position: Represents BB Seguridade’s collections products / 10. Considers the results of holdings BB Seguridade, BB Seguros and BB Cor.
nd
Earnings by Segment
BB Mapfre SH1 (R$ mm) Mapfre BB SH2 (R$ mm)
Brasilprev (R$ mm) Brasilcap (R$ mm)
Income from insurance, pension plans and premium bonds grows in all affiliates. Financial result impacted by mark-to-market.
1Q13
55.0
218.7
177.5
1Q12
81.0127.6
149.4
Adjusted net income
Net investment income
Underwriting result
Result with pension plans: +9.1%
Net investment income: -12.4%
Adjusted net income: +0.3%
Result with premium bond: +71.8%
Net investment income: -150.8%
Adjusted net income: -47.9%
Underwriting result: +31.8%
Net investment income: -78.6%
Adjusted net income: -64.9%
Underwriting result: +71.4%
Net investment income: -32.2%
Adjusted net income: +18.8%
1Q13
19.121.5
24.6
1Q12
89.4
16.3
70.1
Adjusted net income
Net investment income
Underwriting result
1Q13
77.9
134.7
127.7
1Q12
89.0123.5
127.3
Adjusted net income
Net investment income
Result with pension plan
-21.5
1Q13
63.7
25.4
1Q12
42.337.1
48.8
Net investment income
Result with premium bond
Adjusted net income
Earnings by Segment
BB Seguridade Adjusted (R$ mm)
Adjusted net income 5% higher even in an adverse environment for financial income.
Adjusted net income: +5.3%
BB Seguridade (R$ mm)
Net income: +53.5%
1Q13
454.9
34.7
1Q12
431.9
37.8
ROAE (%)
Adjusted net income
1Q13
472.0
36.2
1Q12
307.4
26.0
ROAE (%)
Net income
BB Mapfre SH1 – Highlights
20.7%
1Q13
961.4
1Q12
796.3
Earned premiums (R$ mm) Claims (%)
-6.7 p.p.
1Q13
77.3
1Q12
84.0
Combined ratio (%) Adjusted ROAE (%)
1Q13
28.4
1Q12
21.5
-8.0 p.p.
1Q13
35.1
1Q12
43.1
Adjusted ROAE grew fueled by growth in earned premiums and reduction in claims.
BB Mapfre SH1 – Highlights
Premiums written (R$ mm) Breakdown of premiums 1Q12 vs 1Q13
Selling channels 1Q13
+19.0%
1Q13
1,112.2
1Q12
934.3
80.0%
Others Channels
20.0%
Banking Channel
* Based on SUSEP GAAP
Banking channel sustains the growth of premiums written, in line with the business plan ofthe company.
Selling channels 1Q12
Others Channels
24.4%
Banking Channel
75.6%
2.4%
5.7%
76.2%
Housing
Life
15.7%
Rural
DPVATHousing
Rural 7.0%
7.9% 2.2%
DPVAT
Life
82.9%
1Q12 1Q13
x
Mapfre BB SH2 – Highlights
Premiums earned (R$ mm) Claims (%)
Combined ratio (%) Adjusted ROAE (%)
+12.2%
1Q13
1,531.2
1Q12
1,364.7
-0.2 p.p.
1Q13
98.6
1Q12
98.8
1Q13
4.4
1Q12
13.2
-3.0 p.p.
1Q13
54.8
1Q12
57.8
ROAE impacted by the financial result, but the growth in premiums earned and drop lowerloss ratio show favorable operating performance.
Mapfre BB SH2 – Highlights
Premiums written (R$ mm) Breakdown of premiums 1Q12 vs 1Q13
+22.9%
1Q13
1,646.7
1Q12
1,340.4
Others Channels
65.6%
Banking Channel
34.4%
Selling channels 1Q13
Performance in auto insurance sustains the growth in premiums written, with the banking channel showing the highest growth.
Selling channels 1Q12
Others Channels
69.5%
Banking Channel
30.5%
DPVAT
4.9%
Casualties
Auto8.2%
Affinity
30.3% 56.7%
DPVATAffinity
34.3%
9.8%
51.4%
Auto4.5%
Casualties
1Q12 1Q13
x
* Based on SUSEP GAAP
Brasilprev – Highlights
Gross revenue from pension plans (R$ mm) Adjusted ROAE (%)
Net Inflow of Contributions (R$ mm) Technical Reserves (R$ bn)
+38.5%
1Q13
6,083.4
1Q12
4,390.9
1Q13
53.7
1Q12
68.0
+34.0%
Mar/13
71.9
Mar/12
53.7
Brasilprev reaches 43% of net total net inflow in the market, which has been supportingthe growth of reserves.
1Q13
4,555.9
43.5%
1Q12
3,410.6
41.2%
Market Share
Net Inflow of Contributions
* Based on SUSEP GAAP. Net Inflow of Contributions = Collection - Redemptions
Brasilcap – Highlights
Premium Bonds Collection (R$ mm) Adjusted ROAE (%)
Net Inflow of Contributions (R$ mm) Technical Reserves (R$ bn)
863.7
+26.6%
1Q13
1,093.5
1Q12 1Q13
63.4
1Q12
167.2
5.3
+29.9%
Mar/13
6.8
Mar/12
Growth in revenue and net inflow, with increased market share in reserves and collections.
241.1
19.5%
1Q13
465.2
29.1%
1Q12
Market Share
Net Inflow of Contributions
* Based on SUSEP GAAP. Net Inflow of Contributions = Collection - Redemptions
BB Corretora – Highlights
Brokerage Revenues (R$ mm) Revenues Breakdown 1Q12 vs 1T13
Adjusted Net Income (R$ mm) Performance (R$ mm)
+21.2%
1Q13
387.6
1Q12
319.8
+22.9%
1Q13
193.6
1Q12
157.5
Benefits from the predominance of sales through the banking channel, increase of commission income and net margin.
SH2
18.1%Brasilprev
Brasilcap
19.7%
1.3%
11.8%
49.1%
Other
SH1
Brasilcap
Brasilprev
SH1
Other
16.8% 46.2%
21.1%
14.4%
1.5%
SH2
1Q12 1Q13
x
1Q12 1Q13
Brokerage Revenues 319.8 387.6
Operating Result 231.8 284.3
Adjusted Net Income 157.5 193.6
Net Margin 49.3% 49.9%
Apresentação Institucional
Março 2013
Contacts:Investor Relations
SBS – Quadra 1 – Bloco A –
Ed. Sede I – 4º andar
70.073-900 – Brasília, DF
Tel: +55 (61) 3102-5771
www.bancodobrasilseguridade.com.br