BB Seguridade Participações (BBSE3) Q1 2025 earnings summary

Executive summary

• Adjusted/managerial net income reached R$2.0 billion in 1Q25, up 8.3% year-over-year, driven by higher net investment income and improved performance in insurance and brokerage segments.

• Retained earned premiums totaled R$3.6 billion, a 7.1% increase, while brokerage revenues rose 4.1% to R$1.4 billion.

• Investments in new products and digital platforms reached R$127 million, supporting system availability and faster time to market.

• Customer satisfaction improved, with consolidated NPS advancing 4.6 points and complaints down over 25% year-over-year.

• Segment results were mixed: insurance and brokerage up, pension contributions down, and premium growth lagged due to declines in credit life and crop insurance.

Financial highlights

• Net investment income grew 38% year-over-year to R$320 million, contributing 16% to the bottom line.

• Loss ratio dropped 0.3 percentage points to 26.1%, the lowest historical level.

• Pension reserves expanded 8.2% to R$440 billion over 12 months.

• Premium bonds collections rose 38% to R$90 million, while net income grew 9% year-over-year.

• Adjusted net income for pensions increased 17% year-over-year, with investment income swinging from negative to positive.

Outlook and guidance

• Non-interest operating result is near the center of the target range; written premiums are down nearly 6%, mainly due to credit-related products.

• Pension reserves are below the annual target range but expected to accelerate as rates rise.

• Guidance remains unchanged, with expectations for improvement in credit life and rural insurance premiums in the coming quarters.

• Management continues to monitor impacts of tax reform and new accounting standards, with no immediate material effects expected.

• 2025 guidance ranges maintained amid global uncertainties affecting commercial performance.