BB Seguridade Participações (BBSE3) Q1 2025 earnings summary

Executive summary

• Managerial net income reached R$2.0bn in 1Q25, up 8.3% year-over-year, driven by higher non-interest operating income and a 38% increase in net investment income.

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

• Loss ratio improved to 26.1%, the lowest historical level, and business pension reserves expanded 8.2% to R$440bn.

• Investments of R$127 million were made in new products and digital platforms, with two new products launched in Q1.

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

Financial highlights

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

• Operating result benefited from a R$152 million increase, mainly from net investment income and earned premiums.

• Premiums written dropped 6% due to inflation-linked products, especially agricultural insurance, but retained premiums would have grown 2% excluding discontinued products.

• Combined ratio increased slightly due to higher commissions, but loss ratio improved, especially in the life segment.

• Pension contributions dropped 20% year-over-year after a record Q1 2024, but reserves grew 8%.

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 the average rate rises.

• Credit life insurance and new products are expected to drive future growth, with recovery anticipated in the second half.

• Payout ratio is expected to be at the upper end of the 80-90% historical range, with no buyback planned for 2025.

• Guidance targets moderate growth for 2025, with pension plan reserves guidance at 8–12% growth.