2017 Institutional Presentation BB Seguridade Participaes S.A. | - - PowerPoint PPT Presentation

2017

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

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 15.2% 15.2% 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 (%)

• Brazilian Government;
• Bradesco Seguros S.A.;
• Itaú Seguros S.A.;
• FIP Caixa Barcelona;
• Other.

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

Sérgio Augusto Kurovski

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 – DEC/2017 FREE-FLOAT BREAKDOWN¹ – DEC/2017

Foreign Investors 79.5% Institutional 15.2% Individuals 5.3% 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 Channel 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 146 Partnerships (Affinity) 19,723 External Brokers 66.0 Million clients 4,770 Branches 59,709 ATMs 13,774 Banking correspondents 35,827 Points of service in shared network

1º

Access to the largest distribution network in Latin America

BB Seguridade Participações S.A. | Investor Relations

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31.5% 16.8% 11.6% 11.3% 10.0% 9.2% 171.2% 45.5% 18.5%

Strong Financial Performance

ROAE¹ 2017(%)

Source: Companies and Susep

• 1. Odontoprev and SulAmerica data as of 9M17

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 - forecasts as of January, 2018 2. Source: Focus - forecasts as of February 16, 2018 3. GDP Growth Brasil 2017E

2016 2017 2018E 2019E 2020E World Economy - GDP Growth¹ World 2.4% 3.0% 3.1% 3.0% 2.9% USA 1.5% 2.3% 2.5% 2.2% 2.0% Euro Zone 1.8% 2.4% 2.1% 1.7% 1.5% China 6.7% 6.8% 6.4% 6.3% 6.2% Brazilian Economy² GDP Growth - Brazil³

• 3.6%

1.0% 2.8% 3.0% 2.7% SELIC (ends of period) 14.0% 10.0% 6.8% 8.0% 8.0% SELIC (year average ) n.a. n.a. 6.8% 7.9% 8.0% Inflation (IPCA) 6.3% 2.9% 3.8% 4.3% 4.0% Inflation (IGP-M) 7.2%

• 0.5%

4.5% 4.3% 4.0% Dollar (quotation in R$) 3.26 3.31 3.30 3.39 3.47

BB Seguridade Participações S.A. | Investor Relations

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24.5 27.2 27.5 28.5 25.0 20.6 19.8 20.6 20.6 21.2 14.3 12.6 11.4 11.5 11.8 5.0 4.5 5.1 5.6 7.7 4.8 4.9 5.0 5.3 5.4 30.8 31.0 30.4 28.5 28.9

69.2% 69.0% 69.6% 71.5% 71.1% 2013 2014 2015 2016 2017 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

4,770 4,749 4,383 3,415 2,255

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 September/17.

Source: World Bank

• 1. Data as of 2014

1

BB Seguridade Participações S.A. | Investor Relations

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16.7 16.2 11.5 7.4 9.5 2.1 7.6 7.0 7.2 6.1 6.2 3.0 2.8 3.6 2.8 2.9 2.3 0.5 2.7 0.9 0.4 1.1 3.3 1.4 2.7 4.7 2.2 8.3 2.6 2.6 2.4 3.2 2.0 4.3 3.3 2.3 2.8 1.9 1.8 3.5 0.8 1.9 2.2 1.3

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

Global Insurance Industry

Insurance market presents low penetration level in Brazil

Insurance premiums1 / GDP (%, 2016)

Source: SUSEP and Swiss Re – Sigma 03/2017

• 1. Excluding businesses abroad

#41 Life Insurance Premium / GDP Non-Life Insurance Premium / GDP #64

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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177.7 194.6 212.8 232.0 240.8 2013 2014 2015 2016 2017 82.9 89.2 92.2 93.4 98.9 2013 2014 2015 2016 2017

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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73.9 83.5 99.0 117.5 121.1 2013 2014 2015 2016 2017

Pension Plans Industry in Brazil

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

Source: SUSEP

373.2 442.0 536.3 661.6 774.7 2013 2014 2015 2016 2017

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$ 225.3 billion in December 2017 Insurance Operations, Pension Plans and Premium Bonds managed through private partnerships with global leaders High Profitability

̶

Annualized ROAE of 45.5% in 2017

BB Seguridade at a Glance

174 employees at the holding and broker level, and 6,592 employees1 at the affiliates level. One of the Largest Insurance, Pension and Premium Bonds Companies in Latin America

̶

R$ 15.9 billion in premiums written, R$ 41.1 billion in pension contributions and R$ 4.9 billion in premium bonds in 2017

• 1. Including outsourced workers

BB Seguridade Participações S.A. | Investor Relations

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Market Share – 2017

Segments Market Size (R$ MM) BBSE (%) Main Competitors Insurance premiums written Life¹

22,257

16.5% # 2 12.5% # 3 12.5%

Credit life

9,576

17.4% # 1 17.6% # 3 16.0%

Rural

4,208

74.2% # 2 4.7% # 3 3.6%

Auto

34,692

11.6% # 1 27.6% # 2 11.8%

Pension plans Contributions

121,090

34.1% # 2 27.9% # 3 18.9%

P/VGBL Reserves

763,607

30.6% # 2 28.0% # 3 23.2%

Premium bonds Collection

20,777

23.6 # 1 29.1% # 3 13.8%

Reserves

29,158

34.1% # 2 25.9% # 3 11.4%

Source: Susep

• 1. Excluding premiums from “Dotal”

# 1 # 1 # 1 # 1 # 2 # 1 # 3 # 2

BB Seguridade Participações S.A. | Investor Relations

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SH1 28.7% SH2 0.2% Brasilprev 20.9% Brasilcap 4.4% IRB 4.0% Brasildental 0.1% BB Corretora 40.6% Others 1.2% SH1 29.7% SH2 3.0% Brasilprev 18.0% Brasilcap 7.0% IRB 4.1% Brasildental 0.1% BB Corretora 38.3% SH1 12.4% SH2 13.3% Brasilprev 66.4% Brasilcap 7.9% SH1 10.7% SH2 12.2% Brasilprev 68.9% Brasilcap 8.2%

2017

BB Seguridade Performance

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

2016 2017

• 1. Premiums written, pension plans contributions and premium bonds collections
• 2. Source: Susep

2016

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

43,349 53,996 60,176 68,876 61,883 24.5% 27.0% 27.5% 28.8% 25.0% 2013 2014 2015 2016 2017 Revenues (R$ MM) Market share² CAGR 2013-2017 9% 2,260 3,223 3,945 4,107 3,911 38.4% 49.8% 54.8% 51.8% 45.5% 2013 2014 2015 2016 2017 Adjusted net income (R$ MM) ROAE CAGR 2013-2017 15%

BB Seguridade Participações S.A. | Investor Relations

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Pre-fixed 24.6% Floating 26.4% Inflation protected 45.0% Fund quotes 0.2% Other 3.8% Pre-fixed 25.0% Floating 18.6% Inflation protected 51.2% Fund quotes 0.2% Other 5.0%

Net Investment Income

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

Source: Focus - Bacen do Brasil Source: ValorPro

NET INVESTMENT INCOME (R$ MM)

DEC/16 DEC/17

12.20 11.62 11.56 11.57 11.60 7.51 7.27 8.11 8.80 9.24 11.52 11.03 11.19 11.33 11.47 6.89 6.87 8.09 9.07 9.65 DI1F18 DI1F19 DI1F20 DI1F21 DI1F22

Dec/2016 Sep/2016 Sep/2017 Dec/2017 8.15 10.81 13.27 14.02 10.06 2013 2014 2015 2016 2017

488 861 1,225 1,263 1,108

21.6% 26.7% 31.1% 30.7% 28.3% 2013 2014 2015 2016 2017 Net investment income % Net income CAGR 2013-2017 23%

BB Seguridade Participações S.A. | Investor Relations

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47.0 43.7 52.2 48.9 14.8 15.9 16.4 17.7 32.0 35.3 24.8 27.9 3.2 2.0 3.6 2.2 2.9 3.1 3.0 3.3 2016 2017 2016 2017 Life Credit Life Rural DPVAT Mortgage Life

BB MAPFRE SH1

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

WRITTEN RETAINED

NET INVESTMENT INCOME (R$ MM)

5,703 6,904 7,007 6,626 6,852

542 528 594 753 829

6,244 7,432 7,601 7,379 7,681 2013 2014 2015 2016 2017 Retained premiums Premiums ceded CAGR 2013-2017 5% 1,680 2,425 2,654 2,794 2,759 75.0% 72.5% 69.0% 70.2% 73.9% 2013 2014 2015 2016 2017 Underwriting result (R$ MM) Combined ratio CAGR 2013-2017 13% 307 444 679 679 626 2013 2014 2015 2016 2017 CAGR 2013-2017 19%

BB Seguridade Participações S.A. | Investor Relations

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BB MAPFRE SH1 – Performance Ratios¹

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

• 1. Adjusted ratios considering the reinsurance effects.

33.6 31.1 29.5 31.9 29.3 2013 2014 2015 2016 2017 27.3 26.3 27.0 27.2 29.9 2013 2014 2015 2016 2017 14.2 15.3 12.7 11.4 14.9 2013 2014 2015 2016 2017 75.0 72.5 69.0 70.2 73.9 70.0 67.2 62.1 63.9 67.6 2013 2014 2015 2016 2017 Combined ratio Expanded combined ratio

BB Seguridade Participações S.A. | Investor Relations

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Pre-fixed 8.2% Floating 56.8% Inflation protected 25.0% Others¹ 10.0% Pre-fixed 9.9% Floating 44.2% Inflation protected 30.7% Others¹ 15.2%

PROFITABILITY NET INCOME BREAKDOWN (%) SOLVENCY

• 1. Agrarian debt bonds, DPVAT, Investment funds

ASSET ALLOCATION

DEC/16 DEC/17

BB MAPFRE SH1

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

76.9 77.3 72.9 74.4 73.1 23.1 22.7 27.1 25.6 26.9 2013 2014 2015 2016 2017 Non-interest operating result.¹ Net investment income¹ 907 1,297 1,632 1,663 1,494 29.6% 41.4% 46.5% 44.2% 42.1% 2013 2014 2015 2016 2017 Adjusted net income (R$ MM) ROAE CAGR 2013-2017 13%

6 9 10 10 10 5 7 8 8 9

128.9% 126.0% 113.3% 139.9% 186.2% Dec/13 Dec/14 Dec/15 Dec/16 Dec/17

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

BB Seguridade Participações S.A. | Investor Relations

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48.3 48.8 58.1 58.5 39.9 40.7 27.7 29.0 3.9 2.7 4.6 3.2 7.9 7.8 9.5 9.3 2016 2017 2016 2017 Vehicles Casualties DPVAT Other

MAPFRE BB SH2

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

RETAINED WRITTEN

6,909 7,648 7,680 7,008 6,880

885 1,198 1,414 1,417 1,358

7,794 8,846 9,094 8,424 8,238 2013 2014 2015 2016 2017 Retained premiums Premiums ceded CAGR 2013-2017 1% 1,423 1,410 1,504 1,185 1,117 98.0% 98.6% 99.4% 102.7% 104.5% 2013 2014 2015 2016 2017 Underwriting result (R$ MM) Combined ratio CAGR 2013-2017

• 6%

216 387 684 611 393 2013 2014 2015 2016 2017 CAGR 2013-2017 16%

BB Seguridade Participações S.A. | Investor Relations

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MAPFRE BB SH2 – Performance Ratios¹

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

• 1. Adjusted ratios considering the reinsurance effects.

54.4 57.4 57.2 61.0 59.2 2013 2014 2015 2016 2017 24.1 23.0 23.1 23.2 24.8 2013 2014 2015 2016 2017 19.5 18.3 19.3 18.7 20.8 2013 2014 2015 2016 2017 98.0 98.6 99.4 102.7 104.5 94.9 93.5 91.2 94.8 98.8 2013 2014 2015 2016 2017 Combined ratio Expanded combined ratio

BB Seguridade Participações S.A. | Investor Relations

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Pre-fixed 16.0% Floating 36.1% Inflation protected 30.7% Others¹ 17.2% Pre-fixed 7.0% Floating 56.7% Inflation protected 19.6% Others¹ 16.7%

PROFITABILITY NET INCOME BREAKDOWN (R$ MM) SOLVENCY

• 1. Agrarian debt bonds, DPVAT, Investment funds

ASSET ALLOCATION

DEC/16 DEC/17

MAPFRE BB SH2

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

152 249 438 406 201 47 26

• 22
• 156
• 186

2013 2014 2015 2016 2017 Net investment income¹ Non interest operating result¹ 199 275 416 250 16 7.5% 9.2% 12.8% 7.0% 0.4% 2013 2014 2015 2016 2017 Adjusted net income (R$ MM) ROAE CAGR 2013-2017

• 47%

6 8 9 8 8 6 7 8 7 8

130.8% 139.0% 143.1% 183.4% 211.5% Dec/13 Dec/14 Dec/15 Dec/16 Dec/17

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

BB Seguridade Participações S.A. | Investor Relations

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Brasilprev

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

Source: Quantum Axis

• 1. Defined remuneration plan

21 28 34 44 38 3 2 2 2 2 0.4 0.5 0.5 0.5 0.5

23 31 37 47 41 2013 2014 2015 2016 2017 VGBL PGBL Traditional CAGR 2013-2017 16% 14 21 23 29 18 11.2% 9.4% 9.3% 8.8% 7.9% 2013 2014 2015 2016 2017 Net inflows (R$ BN) Redemptions ratio CAGR 2013-2017 7% 1,031 1,236 1,555 1,957 2,382 1.32% 1.28% 1.21% 1.15% 1.11% 2013 2014 2015 2016 2017 Management fee (R$ MM) Management fee CAGR 2013-2017 23% 55 80 113 157 191 20 23 27 31 34 8 8 9 9 9 84 112 148 198 235 2013 2014 2015 2016 2017 VGBL PGBL Traditional¹ CAGR 2013-2017 29%

BB Seguridade Participações S.A. | Investor Relations

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Government bonds 89.4% Securities¹ 7.8% Debentures and commercial papers 2.2% Stocks 0.6% Pre-fixed 2.9% Floating 5.4% Inflation protected 91.7% Pre-fixed 5.3% Floating 7.1% Inflation protected 87.6%

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

DEC/16 DEC/17 DEC/16 DEC/17

R$ 199.2 BN ASSET ALLOCATION R$ 236.3 BN R$ 11.9 BN R$ 12.3 BN RESULT WITH PENSION PLANS AND INSURANCE PROFITABILITY

Government bonds 93.1% Securities¹ 4.6% Debentures and commercial papers 1.6% Stocks 0.7%

646 750 932 1,202 1,470 52.8% 52.2% 51.7% 49.2% 47.5% 2013 2014 2015 2016 2017 Result with pension plans and insurance (R$ MM) Cost-to-income ratio CAGR 2013-2017 23% 592 729 861 1,009 1,091 46.3% 42.6% 39.2% 41.8% 43.1% 2013 2014 2015 2016 2017 Adjusted net income (R$ MM) ROAE CAGR 2013-2017 17%

BB Seguridade Participações S.A. | Investor Relations

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Brasilcap

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

4,403 4,058 3,931 3,132 2,626 1,867 2,629 2,586 2,518 2,267 6,270 6,687 6,517 5,649 4,893 2013 2014 2015 2016 2017 Unique payment Monthly payment CAGR 2013-2017

• 6%

166 209 178 129 19 17.3% 18.2% 15.7% 13.8% 2.9% 2013 2014 2015 2016 2017 Result with premium bonds (R$ MM) Premium bonds margin CAGR 2013-2017

• 42%

59 325 454 645 424 2013 2014 2015 2016 2017 CAGR 2013-2017 64% 132 324 379 439 256 57.1% 92.2% 87.0% 98.4% 62.9% 2013 2014 2015 2016 2017 Adjusted net income (R$ MM) ROAE CAGR 2013-2017 18%

BB Seguridade Participações S.A. | Investor Relations

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Pre-fixed 58.2% Floating 16.9% Inflation protected 23.9% Stock Funds 1.0% Pre-fixed 56.9% Floating 38.4% Inflation protected 3.3% Stock Funds 1.3%

Government bonds 75.3% Time deposits and others 14.0% Debentures and commercial papers 5.2% Stocks 0.7% Repo + Cash 4.9% Government bonds 78.4% Time deposits and others 7.9% Debentures and commercial papers 2.6% Stocks 0.7% Repo + Cash 10.5%

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

DEC/16 DEC/17 DEC/16 DEC/17

Brasilcap

9,489 11,752 12,354 10,763 9,952 2013 2014 2015 2016 2017 CAGR 2013-2017 1% 134.7 153.2 165.0 167.2 173.6 2013 2014 2015 2016 2017

BB Seguridade Participações S.A. | Investor Relations

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SH1 62.7% SH2 10.2% Brasilprev 17.3% Brasilcap 9.5% Other 0.3% SH1 57.8% SH2 11.0% Brasilprev 20.9% Brasilcap 10.1% Other 0.2%

BB Corretora

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

2016 2017

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

and does not consider the net investment income.

1,766 2,308 2,559 2,764 2,775 2013 2014 2015 2016 2017 CAGR 2013-2017 12% 907 1,289 1,508 1,610 1,586 2013 2014 2015 2016 2017 CAGR 2013-2017 15%

17.9 12.3 9.4 8.3 7.1 7.3 7.4 7.4 11.3 11.9 27.2 28.8 30.0 29.4 29.2

52.4 48.5 46.8 49.0 48.2 51.7 55.9 58.9 58.2 57.2 2013 2014 2015 2016 2017

Operating expenses Tax expenses Income taxes Net margin

BB Seguridade Participações S.A. | Investor Relations

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Change of the adjusted net income

• 2.0% to +2.0%

Guidance 2018

Ratio 2018 Estimates

BB Seguridade Participações S.A. | Investor Relations

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Estrutura Acionária - Parcerias

Restructuring the Joint Venture with MAPFRE

Crop Rural Lien Credit Life for Farmers

SH2

Term Life Mortgage Life Rural Credit Life

New BB MAPFRE INSURANCE GROUP

Term Life Crop Credit Life Home Other P&C Auto Large Risks Home Other P&C Bancassurance Term Life Mortgage Life Credit Life

74.99% 25.01%

SH1

50.00% 50.00%

Term Life Independent Broker Other P&C Auto Large Risks Home Auto Home Large Risks Other P&C Bancassurance Independent Broker & Affinity Large Risks Auto

Captive Access to Distribute at BB Bancassurance Channel

Independent Broker & Affinity Bancassurance

74.99% 25.01%

BB Bancassurance Channel Affinity Channel

Portfolio of Products

BB Seguridade Participações S.A. | Investor Relations

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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.

BB Seguridade Participações S.A. | Investor Relations

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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/en ri@bbseg.com.br