05/06/2024 – 10:20
BB Seguridade (BBSE3.SA) recorded a net profit of R$ 2 billion in the first quarter of this year, which represents a growth of 10.4% over the same period in 2023, as announced this Monday, 6, the insurance and pension arm of Banco do Brasil.
+BB Seguridade’s profit reaches R$2.05 billion and rises 14% in the fourth quarter of 2023
According to the institution, the result is due to the increase in premiums earned and the improvement in insurance claims, growth in brokerage revenues and an increase in volumes collected in pension plans and capitalization.
Also according to BB Seguridade, the non-interest operating result was the company’s growth lever, increasing 10.9% in the period, above the guidance disclosed.
In a note, the pension and insurance arm of Banco do Brasil says that the operational evolution more than compensated for the retraction in the financial result caused by the temporal mismatch of inflation indices that correct defined benefit pension plans, through mark-to-market negative impact on positions in fixed income securities and the fall in the Selic rate.
Also according to the institution, the effect of the fall in the Selic rate was partially offset by the expansion of approximately 10% in the average balance of post-fixed positions of all companies in the group, BB Seguridade stated in a note.
“This result from BB Seguridade demonstrates the solidity of a company well founded on its strategic pillars and the ability to adapt and transform. Technological modernization, expansion of business models and customer experience are and will continue to be the guiding principles of our management”, commented the president of BB Seguridade, André Haui.
Other highlights from BB Seguridade’s balance sheet:
Pension
According to the company, contributions reached an all-time quarterly record. Between January and March this year, contributions to pension plans grew 13.5% compared to the same quarter last year and totaled R$16.8 billion, a number that represents the highest quarterly volume in the historical series.
The redemption rate reached 8.6% – the lowest quarterly level since 4Q20 – and portability reduced by 0.5 pp. The record volume of inflows and the reduction in outflows led to a net inflow of R$5.6 billion, almost triple what was recorded in 1Q23, with reserves for PGBL and VGBL plans expanding 15.2%.
Capitalization
Revenue from capitalization bonds grew 16.4%, with an increase in the average bond ticket. The operation’s net profit increased 12.8% compared to that recorded in the same period of the previous year, reaching R$70.7 million, driven by the 32.9% growth in financial results.
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