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InstitutionalPresentation September 13
Institutional Presentation
September 13
Largest Insurance Broker in Latin America
Leading Presence in Other Segments, such as Premium Bonds 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
* Does not include health insurance.
Track Record
* 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
CFOLeonardo Giuberti Mattedi
CFOLeonardo Giuberti Mattedi
CCOAndré Luis Cortes Mussili
CCOAndré Luis Cortes Mussili
COOÂngela Beatriz de Assis
COOÂngela 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%BB Seguridade Stake in
Terms of Voting Shares (%)
Board of Directors
Representation (%)
66,25%33,75%
Shareholders Structure
IRB –Brasil Re
IRB –Brasil Re
BrasildentalBrasildental
20,5%
20,5%
20%
74,9%
49,9%
50%
Pending approval by regulators, supervisors and inspectors.
Corporate Governance Overview
* Effective members and substitutes
Board of Directors*
SH1Life
SH2P&C
BrasilprevPension
Plans
BrasilcapPremium
Bonds
16 members
8 appointments
8 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
16 members
8 appointments
8 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
Broker3 appointments
10 members
2 appointmentsIRB-RE
Reinsurance
Distribution Channels
5,416
17,378
140
60,387 20,609
61.0 mm clients
Branches
ATM
Correspondents
External Brokers
Partnerships
Banking Channel1 Non-banking channel2
28,643
Shared
Sound non-banking network spread all over Brazil
1º
5,181
Points of sale
1Source: Banco do Brasil –September 20132Source: Grupo BB Mapfre – September 2013
� 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
BB Seguridade plays an active role in its operational companies´ governance
BB Seguridade – Earnings Breakdown
Net Revenues (2Q13)5
(R$ mm)
Net Revenues (2Q13)5
(R$ mm)
% of BB Seguridade
adjusted net income 9
% of BB Seguridade
adjusted net income 9
Adjusted ROAE(2Q13)
Adjusted ROAE(2Q13)
Ranking 10Ranking 10
Adjusted net income
(2Q13) 6 (R$ mm)
Adjusted net income
(2Q13) 6 (R$ mm)
Business LinesBusiness Lines
10
Insurance, Pension Plans and Premium Bonds Distribution Holding
Source: Company fillings and Susep
1. SH1 comprises Life, Credit Insurance, 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 the net income attributable to BB Seguridade / 7. BB Seguridade’s net income includes R$ 11.8mm related to result of IRB Brasil RE, holding revenues/expenses and taxes, which are not shown above / 8. 1ST
position: Represents BB Seguridade’s collections products / 9. Considers the results of holdings BB Seguridade, BB Seguros and BB Cor / 10. Position in 9M13
SH1 Life1
SH2P&C2 Pension Plans Premium Bonds Brokerage
58.4% 51.7%33.1% 6.2%
3,694 1,3831,521 2,122 425
114.9 17.8165.8 19.6 217.9
1st1st
38.0%
547.87
1st1st3
1st8
21.0% 3.2%30.3% 3.6% 39.8%
nd
Consolidated Earnings
Adjusted net income 27% higher even in an adverse environment for financial income
BB Seguridade Adjusted (R$ mm)
Adjusted net income: +27.2%
BB Seguridade (R$ mm)
Net income: +74.8%
3Q13
547.8
38.0
3Q12
430.7
33.3
ROAE (%)
Adjusted net income
3Q13
547.8
38.0
3Q12
313.4
23.5
ROAE (%)
Net income
SH1 Life
BB Mapfre SH1
� Life comprehends life insurance, personal accidents and credit-life insurance.
� Life insurance is a product focused on individual aiming at assuring financial protection to the beneficiaries chosen by the policy holder, in case of natural or
accidental death, or permanent disability of the individual.
� Credit life insurance (life insurance linked to loans) is intended to ensure the payment of a debt in the event of death, permanent disability of the borrower,
preventing family member to inherit this liability.
Life
� Housing insurance is related to the payment of housings. In case of death or disability of the insured, the insurance policy gives the guarantee that his family will
receive the property and the bank will receive the full payment of the property debt. A housing insurance can also protect against physical damage to the insured
property.
Mortgage
� 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
BB Mapfre SH1
Source: SUSEP Data: September/13
BB Mapfre SH1 (R$ mm)
95.0
250.3
221.0
76.6193.2
169.0
3Q133Q12
Adjusted net income
Net investment income
Underwriting resultUnderwriting result: +29.6%
Net investment income: +23.9%
Adjusted net income: +30.8%
Mortgage Life (Insurance Premium) (R$ mm)
3Q12
9.3%
53.0
3Q13
20.6
4.5%
Market Share
Premiums ∆ %
BB Seguridade: +156.7
Industry: +24.2
Rural (Insurance Premium) (R$ mm)
67.0%470.2
76.6%
3Q12
307.5
3Q13
Market Share
Premiums ∆ %
BB Seguridade: +52.9
Industry: +33.7
1,207.4
19.2%
3Q133Q12
1,031.9
18.8%
Market Share
Premiums
Life (Insurance Premium) (R$ mm)
∆ %
BB Seguridade: +17.0
Industry: +14.7
Underwriting results and net investment income sustained growth of adjusted net income
BB Mapfre SH1
Adjusted ROAE reached 33.1%, an increase of 1,054 bps yoy
+34.8%
3Q13
+27.1%
1,248.61,063.4
836.6
3Q12
926.2
Earned premiums (R$ mm) Claims (%)
76.5
3Q13
-45 bps
80.079.1
+81 bps
76.9
3Q12
Combined ratio (%) Adjusted ROAE (%)
3Q12
+1,054 bps
3Q13
22.6
33.1
34.0 34.3
3Q12 3Q13
36.427.5
+236 bps
+678 bps
Earned premiums
Adjusted earned premiums Adjusted claims
Claims
Combined ratio
Adjusted Combined ratio
BB Mapfre SH1Bancassurance channel sustains the growth of premiums written, specially in credit life and
rural segments
Premiums written (R$ mm) Breakdown of premiums 3Q12 vs 3Q13
Selling channels 3Q13
+28.4%
3Q13
1,520.7
3Q12
1,184.1
Other channel12.5%
Bancassurance channel
87.5%
Selling channels 3Q12
Other channel15.6%
Bancassurance channel
84.4%
OthersMortgage life insurance
Rural
Credit insurance
Life41.6%
26.8%
2.9%
25.2%
3.5%
Others
3.3%
1.7%Rural
22.0%
Credit insurance
26.5%
Life46.5%
3Q12 3Q13
x
Mortagage life
insurance
SH2 P&C
Mapfre BB SH2
� Property insurance consists in products developed to protect assets or property from individuals or companies, linked or not to loans. The main products of this
segment are housing insurance (covers the risk related to the property, and not to the individual, as it is the case for mortgage life or housing life insurance),
businesses insurance (protection for companies assets) and insurance for machines and equipment (protection of goods belonging to individuals and businesses).
Property
� Auto insurance is a product aimed at protecting vehicles, for commercial or private use, from damage sustained and caused in accidents or other situations, besides
other assistances provided to the policy holder for their daily lives.
Auto
Source: SUSEP Data: September/13
Mapfre BB SH2 (R$ mm)
Underwriting result: -78.4%
Net investment income: -33.9%
Adjusted net income: -32.6%
3Q13
65.2
3.2
39.2
3Q12
98.5
15.0
58.1
Adjusted net income
Net investment income
Underwriting result
Auto (Insurance Premium) (R$ mm)
3Q13
1,146.5
14.7%
3Q12
1,004.5
15.1%
∆ %
BB Seguridade: +14.1
Industry: +16.8
Market Share
Premiums
Mapfre BB SH2
Solid growth in earned premiums
Earned premiums (R$ mm) Claims (%)
Combined ratio (%) Adjusted ROAE (%)
+21.1%
3Q13
1,937.7
3Q12
1,600.1 1,448.4 1,644.0
+13.5%
+77 bps
3Q13
99.8
3Q12
99.1 99.0 99.8
+84 bps
-348 bps
3Q13
6.2
3Q12
9.7
-624 bps
3Q13
52.7
3Q12
59.0 56.0 57.4
+144 bps
Earned premiums
Adjusted earned premiums
Claims
Adjusted claims
Combined ratio
Adjusted Combined ratio
Mapfre BB SH2Growth in premiums written sustained mainly by auto and casualties segments, with
growth above 15%
Premiums written (R$ mm) Breakdown of premiums 3Q12 vs 3Q13
+15.1%
3Q12
2,122.1
3Q13
1,843.4
Other channel
70.6%
29.4%
Bancassurance channel
Selling channels 3Q13Selling channels 3Q12
Bancassurance channel
68.7%
Other channel
31.3%
Casualties
11.6%
Others
32.8%
Auto
55.6%
Auto
Casualties
Others
32.7%
12.8%
54.5%
3Q12 3Q13
x
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). They 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 are recommended for people who declare income tax (IR) in complete form because the contributions are deductible in the calculation basis of income
tax up to the limit of 12% of annual gross income taxable. In this modality, in case of redemption or income receipt, IR is calculated on the amount redeemed or income
received.
� VGBL products are recommended for those who declares income tax in simplified format or is exempt, since the contributions are not deductible in calculating the tax
base. In this modality, in case of redemption or income received, the incidence of IR is only on the value of income.
Pension Plans
Source: SUSEP Data: September/13
Brasilprev (R$ mm)
Result with pension plans: +56.1%
Net investment income: +1.9%
Adjusted net income: +48.9%
80.6
170.4
153.3
79.1109.2
103.0
3Q133Q12
Result with pension plan
Adjusted net income
Net investment income
Pension Plans (Collection) (R$ mm)
3Q13
3,746.8
29.4%
3Q12
3,405.1
22.4%
Market Share
Contribution ∆ %
BB Seguridade: +10.0
Industry: -16.1
Brasilprev
Increase in the volume of AuM boosted adjusted ROAE to 58%
Gross revenue from pension plans (R$ mm) Adjusted ROAE (%)
Technical Reserves (R$ bn)
+10.1%
3Q13
3,694.3
3Q12
3,356.3
+912 bps
3Q13
58.4
3Q12
49.3
Sep/13
77.6
Sep/12
61.7
+25.9%
Brasilcap
� Premium bonds is a typical product of the Brazilian market, which links into a single financial instrument components of accumulation (savings) and lottery.
� Customers can choose between single payment bonds or perform monthly payments. In both cases, during the period, savers participate in draws with cash prizes. Part
of the payments is directed to the company to pay, for example, the cost of the plan and the expenses with draws. The remaining amount compose a reserve that the
participant gets back at the end of the plan.
� There are similar products in Spain and United Kingdom.
Premium Bonds
Source: SUSEP Data: September/13
Brasilcap (R$ mm)
Result with premium bond: -31.6%
Net investment income: -36.0%
Adjusted net income: -21.8%
24.423.0
26.7
38.133.6
34.1
3Q12 3Q13
Adjusted net income
Net investment income
Result with premium bond
Premium Bonds (Collection) (R$ mm)
3Q13
1,383.2
26.4%
3Q12
918.3
21.8%
Market Share
Collection ∆ %
BB Seguridade: +50.6
Industry: +24.6
Brasilcap
Robust growth of premium bonds collection allowed reaching a market share of 26%
Adjusted ROAE (%)
3Q13
51.7
101.4-4,968 bps
3Q12
Technical Reserves (R$ bn)
+44.5%
Sep/12
5.9
8.5
Sep/13
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
BB CorretoraThe predominance of sales through the bancassurance channel boosted the growth of
brokerage revenues and net margin
Brokerage Revenues (R$ mm) Revenues Breakdown 3Q12 vs 3T13
Adjusted Net Income (R$ mm) Performance (R$ mm)
+28.9%
3Q13
425.5
3Q12
330.0
217.8
161.0
3Q13
+35.3%
3Q12
Other
55.4%
18.7%
SH2
SH1
Brasilprev
Brasilcap
0.5%10.0%
15.4%
13.9%
Brasilcap
SH1
10.8%
SH2
20.3%
Other
51.3%
Brasilprev 3.7%
3Q12 3Q13
x
3Q12 3Q13
Brokerage Revenues 330.0 425.5
Operating Result 243.7 318.6
Adjusted Net Income 161.0 217.8
Net Margin 48.8% 51.2%
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
