1Q17 Institutional Presentation BB Seguridade Participaes S.A. | - - PowerPoint PPT Presentation

1Q17

Institutional

Presentation

BB Seguridade Participações S.A. | Investor Relations

Overview

BB Seguridade Participações S.A. | Investor Relations

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Track Record

1981

Establishment

• f BB’s

insurance

• perations

1993

Creation of Brasilprev

1995

Brasilcap’s inception in partnership with SulAmérica, Icatu and Aliança da Bahia

1996

Establishment of Brasilveículos in partnership with SulAmérica

1999

Partnership with Principal Financial Group in Private Pension Plans

2010

Establishment

• f the Joint

Venture with MAPFRE

2008-2011

Ownership restructuring of BB’s insurance, Pension Plans and Premium Bonds division

2012

Establishment

• f

BB Seguridade

1987

BB Corretora’s establishment

2013 IPO IRB –Brasil RE

Equity investment in

Brasildental

Partnership with Odontoprev

2014

Establishment

• f

ADR – Level I

BB Seguridade Participações S.A. | Investor Relations

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Estrutura Acionária - Parcerias

Ownership Structure

1. One of the members is elected by consensus.

Brasilcap

Premium Bonds

100%

BB Seguros BB Corretora BB MAFPRE SH1

Life, Mortgage Life and Rural

MAPFRE BB SH2

P&C

Brasilprev

Pension Plans

Free Float (Post-IPO)

74.9% 49.9% 50.0%

100%

50.0% 49.0% 50.0% 74.9% 49.9% 50.0% 66.7% 49.9% 66.7%

66.25% 33.75%

IRB –Brasil Re

Reinsurance

Brasildental

Dental Insurance 20.4% 20.4% 20.0% 74.9% 49.9% 50.0% BB Seguridade Economic Stake (%) BB Seguridade Voting Stake (%) Board of Directors Representation (%)

BB Seguridade

50.0% 50.0% 50.0% 50.0%

• 50.0%¹

Board of Executive Officers Representation (%)

BB Seguridade Participações S.A. | Investor Relations

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ESTRUTURA ORGANIZACIONAL BB SEGURIDADE

CEO

José Maurício Pereira Coelho

Chief Financial Officer

Werner Romera Suffert

Chief Risk Officer

Antonio Rugero Guibo

Chief Marketing Officer

Ângela Beatriz de Assis

Executive Board

Board of Directors

General Meeting

Fiscal Council

Audit Committee Related-party Committee Internal Audit

Internal Structure

BB Seguridade Participações S.A. | Investor Relations

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Shareholders Structure

TOTAL CAPITAL BREAKDOWN – MAR/2017 FREE-FLOAT BREAKDOWN¹ – MAR/2017

Foreign Investors 81.9% Institutional 13.5% Individuals 4.6% Banco do Brasil 66,3% Free-float 33,8%

¹ Does not include treasury stocks.

BB Seguridade Participações S.A. | Investor Relations

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ADR Program

In 2014, BB Seguridade established a sponsored Level I American Depositary Receipt (ADR) program.

Ticker: BBSEY Structure: Level I ADR Exchange: Over-the-counter (OTC) market Ratio (ADR:ORD): 1 ADR : 1 ORD DR ISIN: US05541J1034 CUSIP: 05541J103 Depositary Bank: Deutsche Bank Trust Company Americas Custodian Bank: Banco do Brasil S.A.

BB Seguridade Participações S.A. | Investor Relations

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Corporate Governance

Board of Executive Officers: Four members: Elected among the active employees of Banco do Brasil Remuneration policy: fixed monthly wage plus variable portion between six and twelve monthly wages. The variable portion is paid as 50% in cash and 50% in stocks with vesting period of 4 years. Only common shares 100% tag along 80% payout (semi annual dividends) Stocks Related-party Committee Three members: One is the independent member appointed by the minority shareholders The independent member has veto power Board of Directors: Two members appointed by Banco do Brasil from its Board of Executive Officers One appointed by the Ministry of Planning, Budget and Management and the other one appointed by the Ministry of Treasury One member appointed by the minority shareholders The CEO of BB Seguridade Six members:

BB Seguridade Participações S.A. | Investor Relations

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Access to Banco do Brasil’s network

Banking Fee

BB Seguridade

Equity Income Equity Income 66,25%

Any proposal for changes in the agreements must be examined by the Related-party Committee where the independent member has a veto power

Cost Reimbursement Brokerage Income

BB Seguridade Participações S.A. | Investor Relations

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Backed by Banco do Brasil Expertise from Private Partners

• Solidity, tradition, security and reliability
• Safe harbor, especially for long term products
• Flight to quality and less susceptible to market conditions
• Brand awareness
• Fast decision making
• BB Seguridade operates in an arm’s length format
• Monitors the developments of any potential conflicts between BB

and BB Seguridade

• Improves corporate governance
• Minimum voting stake of 50.1%

Backed by Banco do Brasil with Expertise of Private Partnerships

Banco do Brasil Agreement with BB Corretora for distribution of products in Banco do Brasil's branches 20 January-13 January-33 Mapfre Joint Venture 20 June-11 June-31 Principal Joint Venture 23 April-10 October-32 Icatu Partnership No defined term June-05

• Aliança da Bahia

Partnership No defined term June-05

• Odontoprev

Joint Venture 20 September-15 September-35

Relationship Term of the agreements (years) Partnership Start End

BB Seguridade Participações S.A. | Investor Relations

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Bank Channel¹ BB Seguridade strategy focuses on bancassurance with its own broker, taking advantage of the access to Banco do Brasil distribution network. Low complexity business model Low capital needs No underwriting risk

Own Brokerage

Competitive Advantage

Distribution Channel

Non-banking Channel 160 Partnerships (Affinity) 20,267 External Brokers 65.2 Million clients 4,877 Branches 61,651 ATMs 13,622 Banking correspondents 36, 731 Points of service in shared network

1º

Access to the largest distribution network in Latin America

1. Data as of December, 2016

BB Seguridade Participações S.A. | Investor Relations

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39.0% 13.8% 10.0% 8.1% 7.7% 5.3% 146.4% 47.3% 19.6%

Strong Financial Performance

ROAE¹ 1Q17(%)

Source: Companies and Susep

• 1. Annualized ROAE calculated by dividing the adjusted net income by the average shareholder’s equity multiplied by 4.

INSURANCE COMPANIES ASSOCIATED WITH BANKS TRADITIONAL INSURANCE COMPANIES

Brokerage participation

Macroeconomic Environment

BB Seguridade Participações S.A. | Investor Relations

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Global Macroeconomic Data

1. Source: World Bank - forecast s as of January, 2017 2. Source: Focus - forecasts as of May 05, 2017

2015 2016 2017E 2018E 2019E World Economy - GDP Growth¹ World 2.7% 2.3% 2.7% 2.9% 2.9% USA 2.6% 1.6% 2.2% 2.1% 1.9% Euro Zone 2.0% 1.6% 1.5% 1.4% 1.4% China 6.9% 6.7% 6.5% 6.3% 6.3% Brazilian Economy² GDP Growth - Brazil³

• 3.8%
• 3.5%

0.5% 2.5% 2.5% SELIC (ends of period) 13.3% 14.0% 8.5% 8.5% 8.5% SELIC (year average ) n.a. n.a. 10.3% 8.5% 8.8% Inflation (IPCA) 10.7% 6.3% 4.0% 4.4% 4.3% Inflation (IGP-M) 10.7% 7.2% 2.7% 4.5% 4.5% Dollar (quotation in R$) 3.90 3.26 3.23 3.40 3.45

BB Seguridade Participações S.A. | Investor Relations

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24.5 27.2 27.5 28.5 20.6 19.8 20.6 20.6 14.3 12.6 11.4 11.5 5.0 4.9 5.0 5.3 4.8 4.5 5.1 5.6 30.8 31.0 30.4 28.5

69.2% 69.0% 69.6% 71.5% 2013 2014 2015 2016 Banco do Brasil Bradesco Itaú Caixa Santander Others Market-share (%) 98.9 93.6 87.3 78.9 68.1 56.9 38.3

United Kingdom United States Italy China Brazil Venezuela Colombia

4,877 5,122 4,437 3,411 2,254

Bancassurance

BRANCHES IN BRAZIL FINANCIAL INCLUSION¹ (%) POPULATION WITH CHECKING ACCOUNT¹ (%) BANCASSURANCE IN INSURANCE DISTRIBUTION

Source: SUSEP Source: Febraban

• 1. CPFs with active relationship in Brazilian Financial System /Economically active population

51.0 53.0 55.0 57.0 60.0 2010 2011 2012 2013 2014

Source: Companies

• 1. Data as of Dec/16.

Source: World Bank

• 1. Data as of 2014

1

BB Seguridade Participações S.A. | Investor Relations

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15.7 13.3 12.0 9.7 7.3 8.3 2.4 7.5 6.7 6.2 6.6 3.1 4.8 2.9 2.4 2.9 0.1 0.5 2.0 2.7 0.6 1.0 3.2 1.5 2.7 2.2 4.1 2.6 8.4 2.4 2.7 3.1 2.1 4.2 2.3 3.4 2.8 1.8 3.9 3.4 1.6 0.7 2.7 1.2

Taiwan Hong Kong South Africa Finland South Korea Japan Netherlands United Kingdom Denmark France Italy United States Portugal Germany Spain Chile Venezuela Brazil China India Argentina Mexico

Global Insurance Industry

Insurance market presents low penetration level in Brazil

Insurance premiums1 / GDP (%, 2015)

Source: SUSEP and Swiss Re – Sigma 06/2016

• 1. Excluding businesses abroad

#39 Life Insurance Premium / GDP Non-Life Insurance Premium / GDP #61

In Total Insurance In Life Insurance

BB Seguridade Participações S.A. | Investor Relations

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184% 120% 119% 121% 112% 97% 57% 67% 56% 40% 21% 13% 6% 168% 126% 123% 121% 108% 103% 74% 59% 42% 42% 23% 12% 6%

Netherlands Australia Switzerland US UK Canada South Africa Japan Ireland Hong Kong Brazil¹ Germany France 2015 2016

Global Pension Plans Industry

Pension market is growing in Brazil due to the life expectation increase

Pension Assets/GDP² (%)

Source: Towers Watson

• 1. Brazil pension assets were recalculated based on Abrapp and FENAPREVI data to include opened and closed entities
• 2. Assets/GDP ratio for the world is calculated in USD and assets were estimated as of Dec 31, 2016.

# 9

In assets

BB Seguridade Participações S.A. | Investor Relations

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157.0 177.6 194.6 212.5 231.3 2012 2013 2014 2015 2016 69.8 82.7 89.2 92.0 93.4 2012 2013 2014 2015 2016

INSURANCE INDUSTRY EVOLUTION (R$ BN)

Insurance Industry in Brazil

Source: SUSEP.

INSURANCE PREMIUMS WRITTEN EVOLUTION (R$ BN)

BB Seguridade Participações S.A. | Investor Relations

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70.3 73.9 83.5 99.0 117.5 2012 2013 2014 2015 2016

Pension Plans Industry in Brazil

AuM (R$ BN) CONTRIBUTIONS (R$ BN)

Source: SUSEP

338.6 373.2 442.0 536.3 661.6 2012 2013 2014 2015 2016

Source: Fenaprevi

Performance

BB Seguridade Participações S.A. | Investor Relations

21 Largest Insurance Broker in Latin America

̶

Access to Banco do Brasil’s unique distribution network Leading Presence in both, contributions and net inflows in Pension Plans

̶

P/VGBL reserves amounted to R$ 199.1 billion in March 2017 Insurance Operations, Pension Plans and Premium Bonds managed through private partnerships with global leaders Net Income Growth with High Profitability

̶

Annualized ROAE¹ of 47.3% in 1Q17

BB Seguridade at a Glance

158 employees at the holding and broker level, and 6,835 employees at the affiliates level.

• 1. ROAE, considering the total distribution of dividends.

One of the Largest Insurance, Pension and Premium Bonds Companies in Latin America

̶

R$ 3.8 billion in premiums written, R$ 10.0 billion in pension contributions and R$ 934 million in premium bonds in 1Q17 2nd Largest P&C Insurance Company in Brazil

BB Seguridade Participações S.A. | Investor Relations

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Market Share – 1Q17

Segments Market Size (R$ MM) BBSE (%) Main Competitors Insurance premiums written Life

5,896

14.6% # 1 22.1% # 3 10.6%

Credit life

2,146

12.6% # 1 19.7% # 2 17.1%

Rural

866

75.3% # 2 4.8% # 3 3.6%

Auto

8,034

12.7% # 1 27.8% # 3 11.4%

Pension plans Contributions

28,744

35.1% # 2 26.4% # 3 20.4%

P/VGBL Reserves

636,690

31.1% # 2 25.2% # 3 23.5%

Premium bonds Collection

4,821

19.4% # 1 30.0% # 3 15.1%

Reserves

28,932

35.4% # 2 25.7% # 3 11.2%

Source: Susep

# 2 # 2 # 1 # 1 # 1 # 1 # 2 # 4

BB Seguridade Participações S.A. | Investor Relations

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SH1 29.3% Brasilprev 18.6% Brasilcap 6.9% IRB 4.6% Brasildental 0.1% BB Corretora 40.4% SH1 29.1% SH2 2.6% Brasilprev 17.1% Brasilcap 9.2% IRB 4.2% Brasildental 0.1% BB Corretora 37.9%

1,754 2,260 3,223 3,945 4,107 958 993 32.4% 38.4% 49.8% 54.8% 51.8% 49.9% 47.3% 2012 2013 2014 2015 2016 1Q16 1Q17 Adjusted net income (R$ MM) ROAE CAGR 2012-2016 24%

+ 4%

SH1 11.0% SH2 14.9% Brasilprev 67.7% Brasilcap 6.3% SH1 11.9% SH2 17.2% Brasilprev 62.6% Brasilcap 8.3%

33,322 43,349 53,996 60,176 68,876 12,613 14,785 21.4% 24.5% 27.0% 27.5% 27.5% 23.7% 25.0% 2012 2013 2014 2015 2016 1Q16 1Q17 Revenues (R$ MM) Market share CAGR 2012-2016 20%

+ 17%

1Q17

BB Seguridade Performance

PREMIUMS, CONTRIBUTIONS AND COLLECTIONS1 BREAKDOWN OF PREMIUMS, CONTRIBUTIONS AND COLLECTIONS¹ PROFITABILITY EARNINGS BREAKDOWN¹

1Q16 1Q17

• 1. Premiums written, pension plans contributions and premium bonds collections

1Q16

• 1. It does not consider the Holding’s revenues and expenses.
• 1. Premiums written, pension plans contributions and premium bonds collections

BB Seguridade Participações S.A. | Investor Relations

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553 488 861 1,225 1,263 329 295

31.5% 21.6% 26.7% 31.1% 30.7% 34.4% 29.7% 2012 2013 2014 2015 2016 1Q16 1Q17 Net investment income % Net income CAGR 2012-2016 23%

• 10%

Pre-fixed 22.7% Floating 26.4% Inflation protected 47.5% Fund quotes 0.2% Other 3.2% Pre-fixed 26.4% Floating 21.1% Inflation protected 49.9% Fund quotes 0.2% Other 2.4%

Net Investment Income

FORWARD YIELD CURVE (%) AVERAGE SELIC RATE (%) ASSET ALLOCATION

Source: Focus - Bacen do Brasil Source: ValorPro

NET INVESTMENT INCOME (R$ MM)

MAR/16 MAR/17

8.53 8.15 10.81 13.27 14.02 14.15 12.70 2012 2013 2014 2015 2016 1Q16 1Q17

16.53 16.75 16.71 16.62 16.59 11.52 11.03 11.19 11.33 11.47 13.71 13.83 13.90 13.88 13.94 9.89 9.52 9.71 9.90 10.04 DI1F18 DI1F19 DI1F20 DI1F21 DI1F22

Mar/2016 Dec/2015 Dec/2016 Mar/2017

BB Seguridade Participações S.A. | Investor Relations

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54.0 48.1 58.2 54.6 10.8 9.6 11.6 10.8 25.1 34.7 19.5 26.4 6.6 3.9 7.2 4.4 3.5 3.5 3.4 3.7 1Q16 1Q17 1Q16 1Q17 Life Credit Life Rural DPVAT Mortgage Life 309 307 444 679 679 190 160 2012 2013 2014 2015 2016 1Q16 1Q17 CAGR 2012-2016 22%

• 16%

4,351 5,703 6,904 7,007 6,626 1,384 1,438

320 542 528 594 753 113 195

4,671 6,244 7,432 7,601 7,379 1,497 1,633 2012 2013 2014 2015 2016 1Q16 1Q17 Retained premiums Premiums ceded CAGR 2012-2016 12%

+ 9%

1,278 1,680 2,425 2,654 2,794 679 815 78.6% 75.0% 72.5% 69.0% 70.2% 73.1% 72.1% 2012 2013 2014 2015 2016 1Q16 1Q17 Underwriting result (R$ MM) Combined ratio CAGR 2012-2016 22%

+ 20%

BB MAPFRE SH1

BREAKDOWN OF PREMIUMS WRITTEN AND RETAINED PREMIUMS (%) PREMIUMS WRITTEN (R$ MM) UNDERWRITING RESULT

WRITTEN RETAINED

NET INVESTMENT INCOME (R$ MM)

BB Seguridade Participações S.A. | Investor Relations

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78.6 75.0 72.5 69.0 70.2 73.1 72.1 72.0 70.0 67.2 62.1 63.9 65.8 65.8 2012 2013 2014 2015 2016 1Q16 1Q17 Combined ratio Expanded combined ratio 16.8 14.2 15.3 12.7 11.4 12.9 20.6 2012 2013 2014 2015 2016 1Q16 1Q17

+ 7.7 p.p.

25.4 27.3 26.3 27.0 27.2 26.3 27.2 2012 2013 2014 2015 2016 1Q16 1Q17

+ 0.9 p.p.

36.6 33.6 31.1 29.5 31.9 34.3 24.6 2012 2013 2014 2015 2016 1Q16 1Q17

• 9.7 p.p.

BB MAPFRE SH1 – Performance Ratios ¹

COMBINED RATIO (%) G&A RATIO (%) LOSS RATIO (%) COMMISSION RATIO (%)

• 1. Adjusted ratios considering the reinsurance effects.

BB Seguridade Participações S.A. | Investor Relations

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68.0 76.9 77.3 72.9 74.4 70.2 73.9 32.0 23.1 22.7 27.1 25.6 29.8 26.1 2012 2013 2014 2015 2016 1Q16 1Q17 Non-interest operating result.¹ Net investment income¹

Pre-fixed 6.6% Floating 54.4% Inflation protected 31.2% Others¹ 7.7% Pre-fixed 10.5% Floating 33.6% Inflation protected 50.9% Others¹ 5.0%

647 907 1,297 1,632 1,663 379 392 20.0% 29.6% 41.4% 46.5% 44.2% 43.1% 45.5% 2012 2013 2014 2015 2016 1Q16 1Q17 Adjusted net income (R$ MM) ROAE CAGR 2012-2016 27%

+ 3%

PROFITABILITY NET INCOME BREAKDOWN (%) SOLVENCY

• 1. Agrarian debt bonds, DPVAT, Investment funds

ASSET ALLOCATION

MAR/16 MAR/17

BB MAPFRE SH1

5 6 9 10 10 9 9 4 5 7 8 8 8 8

159.1% 128.9% 126.0% 113.3% 139.9% 145.0% 122.4% Dec/12 Dec/13 Dec/14 Dec/15 Dec/16 Mar/16 Mar/17

Investments + Receivables (R$ BN) Technical reserve (R$ BN) Solvency ratio

• 1. Net of taxes considering the Company’s effective tax rate.

BB Seguridade Participações S.A. | Investor Relations

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47.5 46.1 58.8 57.4 40.5 42.6 26.4 28.5 5.8 4.1 7.2 5.2 6.2 7.2 7.6 8.9 1Q16 1Q17 1Q16 1Q17 Vehicles Casualties DPVAT Other 338 216 387 684 611 192 81 2012 2013 2014 2015 2016 1Q16 1Q17 CAGR 2012-2016 16%

• 58%

1,166 1,423 1,410 1,504 1,185 248 298 98.4% 98.0% 98.6% 99.4% 102.7% 105.6% 105.9% 2012 2013 2014 2015 2016 1Q16 1Q17 Underwriting result (R$ MM) Combined ratio (%) CAGR 2012-2016 0.4%

+ 20%

5,806 6,909 7,648 7,680 7,008 1,756 1,773

843 885 1,198 1,414 1,417 418 437

6,649 7,794 8,846 9,094 8,424 2,174 2,210 2012 2013 2014 2015 2016 1Q16 1Q17 Retained premiums Premiums ceded CAGR 2012-2016 6%

+ 2%

MAPFRE BB SH2

BREAKDOWN OF PREMIUMS WRITTEN AND RETAINED PREMIUMS (%) PREMIUMS WRITTEN (R$ MM) NET INVESTMENT INCOME (R$ MM) UNDERWRITTING RESULT

RETAINED WRITTEN

BB Seguridade Participações S.A. | Investor Relations

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98.4 98.0 98.6 99.4 102.7 105.6 105.9 92.8 94.9 93.5 91.2 94.8 95.9 101.2 2012 2013 2014 2015 2016 1Q16 1Q17 Combined ratio Expanded combined ratio 19.3 19.5 18.3 19.3 18.7 18.7 23.1 2012 2013 2014 2015 2016 1Q16 1Q17

+ 4.4 p.p.

26.1 24.1 23.0 23.1 23.2 23.1 24.0 2012 2013 2014 2015 2016 1Q16 1Q17

+ 0.9 p.p.

56.6 54.4 57.4 57.2 61.0 64.2 59.3 2012 2013 2014 2015 2016 1Q16 1Q17

• 4.9 p.p.

MAPFRE BB SH2 – Performance Ratios¹

LOSS RATIO (%) COMMISSION RATIO (%) G&A RATIO (%) COMBINED RATIO (%)

• 1. Adjusted ratios considering the reinsurance effects.

BB Seguridade Participações S.A. | Investor Relations

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6 6 8 9 8 9 8 5 6 7 8 7 8 8

127.5% 130.8% 139.0% 143.1% 183.4% 148.6% 174.5% 2012 2013 2014 2015 2016 Mar/16 Mar/17

Investments + Receivables (R$ BN) Technical reserve (R$ BN) Solvency ratio

221 152 249 438 406 108 81 7 47 26

• 22
• 156
• 58
• 86

2012 2013 2014 2015 2016 1Q16 1Q17 Net investment income¹ Non interest operating result¹

Pre-fixed 18.0% Floating 34.4% Inflation protected 32.6% Others¹ 15.0% Pre-fixed 7.0% Floating 54.7% Inflation protected 21.1% Others¹ 17.3%

228 199 275 416 250 50

• 5

9.7% 7.5% 9.2% 12.8% 7.0% 5.8%

• 0.5%

2012 2013 2014 2015 2016 1Q16 1Q17 Adjusted net income (R$ MM) ROAE CAGR 2012-2016 2%

PROFITABILITY NET INCOME BREAKDOWN (R$ MM) SOLVENCY

• 1. Agrarian debt bonds, DPVAT, Investment funds

ASSET ALLOCATION

MAR/16 MAR/17

MAPFRE BB SH2

• 1. Net of taxes considering the Company’s effective tax rate.

BB Seguridade Participações S.A. | Investor Relations

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41 55 80 113 157 121 167 19 20 23 27 31 28 32 7 8 8 9 9 9 9 67 84 112 148 198 157 208 2012 2013 2014 2015 2016 Mar/16 Mar/17 VGBL PGBL Traditional¹ CAGR 2012-2016 31%

+ 33%

838 1,031 1,236 1,555 1,957 430 573 1.38% 1.32% 1.28% 1.21% 1.15% 1.17% 1.13% 2012 2013 2014 2015 2016 1Q16 1Q17 Management fee (R$ MM) Management fee CAGR 2012-2016 24%

+ 33%

13 14 21 23 29 4 4 8.7% 11.2% 9.4% 9.3% 8.8% 9.2% 8.1% 2012 2013 2014 2015 2016 1Q16 1Q17 Net inflows (R$ BN) Redemptions ratio CAGR 2012-2016 22%

+ 20%

16 21 28 34 44 7 9

3 3 2 2 2 0.5 1

0.3 0.4 0.5 0.5 0.5 0.1 0.1

18 23 31 37 47 8 10 2012 2013 2014 2015 2016 1Q16 1Q17 VGBL PGBL Traditional CAGR 2012-2016 27%

+ 27%

Brasilprev

CONTRIBUTIONS (R$ BN) NET INFLOWS MANAGEMENT FEE RESERVES (R$ BN)

Source: Quantum Axis

• 1. Defined remuneration plan

BB Seguridade Participações S.A. | Investor Relations

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477 592 729 861 1,009 223 248 47.1% 46.3% 42.6% 39.2% 41.8% 37.3% 39.7% 2012 2013 2014 2015 2016 1Q16 1Q17 Adjusted net income (R$ MM) ROAE CAGR 2012-2016 21%

+ 11%

Government bonds 86.5% Securities¹ 9.5% Debentures and commercial papers 3.1% Stocks 0.8% Government bonds 91.4% Securities¹ 6.0% Debentures and commercial papers 2.1% Stocks 0.6% Pre-fixed 2.5% Floating 5.8% Inflation protected 91.7% Pre-fixed 3.1% Floating 6.4% Inflation protected 90.5%

445 646 750 932 1,202 262 355 60.7% 52.8% 52.2% 51.7% 49.2% 50.2% 47.6% 2012 2013 2014 2015 2016 1Q16 1Q17 Result with pension plans and insurance (R$ MM) Cost-to-income ratio CAGR 2012-2016 28%

+ 36%

Brasilprev

ASSET ALLOCATION BY INDEX (EXCEPT P/VGBL)

• 1. Securities = time deposits, time deposit with special guarantee, real state receivables certificate, creditory rights, letras hipotecárias and letras financeiras

MAR/16 MAR/17 MAR/16 MAR/17

R$ 158.9 BN ASSET ALLOCATION R$ 210.1 BN R$ 11.3 BN R$ 12.0 BN RESULT WITH PENSION PLANS AND INSURANCE PROFITABILITY

BB Seguridade Participações S.A. | Investor Relations

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1,951 4,403 4,058 3,931 3,132 409 343 1,920 1,867 2,629 2,586 2,518 635 591 3,871 6,270 6,687 6,517 5,649 1,043 934 2012 2013 2014 2015 2016 1Q16 1Q17 Unique payment Montlhy payment CAGR 2012-2016 10%

• 10%

183 59 325 454 645 213 173 2012 2013 2014 2015 2016 1Q16 1Q17 CAGR 2012-2016 37%

• 19%

Brasilcap

PREMIUM BONDS COLLECTION (R$ MM) NET INVESTMENT INCOME (R$ MM) RESULT WITH PREMIUM BONDS PROFITABILITY

99 166 209 178 129 35 17 15.4% 17.3% 18.2% 15.7% 13.8% 18.3% 12.3% 2012 2013 2014 2015 2016 1Q16 1Q17 Result with premium bonds (R$ MM) Premium bonds margin CAGR 2012-2016 7%

• 50%

168 132 324 379 439 135 104 88.6% 57.1% 92.2% 87.0% 98.4% 123.0% 98.7% 2012 2013 2014 2015 2016 1Q16 1Q17 Adjusted net income (R$ MM) ROAE CAGR 2012-2016 27%

• 23%

BB Seguridade Participações S.A. | Investor Relations

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Pre-fixed 60.8% Floating 36.1% Inflation protected 2.3% Stock Funds 0.8% Pre-fixed 57.3% Floating 38.5% Inflation protected 3.1% Stock Funds 1.2%

Government bonds 73.1% Time deposits and others 17.2% Debentures and commercial papers 4.5% Stocks 0.6% Repo + Cash 4.6% Government bonds 75.3% Time deposits and others 16.3% Debentures and commercial papers 5.5% Stocks 0.8% Repo + Cash 2.1%

6,459 9,489 11,752 12,354 10,763 11,723 10,231 2012 2013 2014 2015 2016 Mar/16 Mar/17 CAGR 2012-2016 14%

• 13%

TECHNICAL RESERVES (R$ MM) SOLVENCY RATIO (%) ASSET ALLOCATION¹ ASSET ALLOCATION | TRADING PORTFOLIO

MAR/16 MAR/17 MAR/16 MAR/17

Brasilcap

109.3 134.7 153.2 165.0 167.2 165.2 166.7 2012 2013 2014 2015 2016 Mar/16 Mar/17

• 1. Do not includes BB Capitalização

BB Seguridade Participações S.A. | Investor Relations

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22.5 17.9 12.3 9.4 8.3 8.0 6.6 5.5 7.3 7.4 7.4 11.3 8.9 12.0 25.2 27.2 28.8 30.0 29.4 30.0 30.0

53.2 52.4 48.5 46.8 49.0 46.9 48.6 48.7 51.7 55.9 58.9 58.2 58.7 58.5 2012 2013 2014 2015 2016 1Q16 1Q17

Operating expenses Tax expenses Income taxes Net margin SH1 61.6% SH2 10.4% Brasilprev 22.0% Brasilcap 5.8% Other 0.2%

661 907 1,289 1,508 1,610 371 405 2012 2013 2014 2015 2016 1Q16 1Q17 CAGR 2012-2016 25%

+ 9% SH1 60.7% SH2 12.5% Brasilprev 17.7% Brasilcap 8.9% Other 0.2%

BB Corretora

BROKERAGE INCOME (R$ MM) ADJUSTED NET INCOME (R$ MM) BREAKDOWN OF BROKERAGE INCOME EXPENSES BREAKDOWN & NET MARGIN¹ (%)

1Q16 1Q17

1,359 1,736 2,308 2,559 2,764 632 692 2012 2013 2014 2015 2016 1Q16 1Q17 CAGR 2012-2016 19%

+ 10%

• 1. Operating, tax and income tax expenses are calculated as a percentage of brokerage income

and does not consider the net investment income.

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BB Seguridade - Adjusted net income growth (%) 3.7 1 .0 - 5.0

Guidance 2017

Ratio 2017 Estimates 1Q17

Portfolio of Products

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Our Products – SH1 Insurances

 Definition: term life insurance without accumulation.  Coverage: in case of death, permanent disability or severe disease during the term, the benefit will be paid to the insured or his beneficiary.

Life

 Definition: encompasses a group of three main products: crop insurance, rural lien insurance and credit life insurance for farmers.  Coverage: (i) Crop: any weather hazards and falling in the market prices of the crop; (ii) Lien: damage caused to the property, directly related to agricultural activities, which is provided as collateral of a rural loan; (iii) Credit life: in case of death of the insured person the insurance company will prepay the rural loan.

Rural

 Definition: insurance related to mortgage loans.  Coverage: in case of death or permanent disability the remaining balance of the loan will be prepaid. This product also protects the home of the insured from physical damage.

Mortgage Life Credit Life

 Definition: insurance that guarantee the payment of loans.  Coverage: in case of death the insured loan will be paid off and the client’s relatives will not inherit the debt.

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Our Products – SH2 Insurances

 Definition: A mandatory insurance related to accidents caused by vehicles in Brazil.  Coverage: Covers personal injury caused by vehicles to passengers, drivers or pedestrians.

DPVAT

 Definition: insurance sold to individuals or companies that provides protection to vehicles.  Coverage: is an insurance policy designed to provide protection for vehicles against theft, physical damage and/or bodily injury resulting from traffic colli- sions, besides other assistances provided to the policy holder for their daily lives.

Auto

 Definition: is a type of insurance sold to individuals and companies that provides protection against risks to properties linked or not to loans.  Coverage: the main coverage is for damages to the home of individuals, and the assets of companies such as machinery and other properties.

P&C

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Our Products - Brasilprev

 Defined remuneration  Guarantees a minimum yield composed of either inflation +6% or TR + 6%. ** No longer sold

Traditional Plan

 Pension Plan designed for people who declare income taxes in the complete form as contributions are deductible up to a limit of 12% of the client’s taxable income

PGBL

 Focus on inheritance planning  It has the advantage of not joining the inventory  Lower inheritance costs (does not have legal costs neither lawyer fees)  Less time consuming (beneficiary receives the benefit in less than 30 days)

VGBL

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Our Products - Brasilcap Premium Bonds

 Premium bonds products are an alternative way to accumulate reserves, allowing the bond holder to be entitled to participate in lottery. The award

• ccurs through periodic drawings, being most frequent the usage of a

combination of numbers in a pre-determined series, based on the Brazilian Lottery.

Chances of Contemplation

Ourocap From 1 in 10,000 to 1 in 1,000,000 Official Lottery 1 in 50,063,860

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BB Seguridade – IR

Investor Relations Contacts

Rua Alexandre Dumas, 1671 Térreo – Ala B São Paulo – SP – Brasil 04717-903 Telephone: +55 11 4297-0730 www.bbseguridaderi.com.br ri@bbseg.com.br