BB Seguridade Participações (BBSE3) Q2 2025 earnings summary

Executive summary

• Net income in 2Q25 ranged from R$2.2 billion to R$3.2 billion, up 12.7% to 50% year-over-year, with ROE/ROAE reaching up to 90%, driven by strong performances in Brasilseg, BB Corretora, and Brasilprev.

• Accumulated H1 2025 net income was R$4.2 billion, up 14%, with ROA at 93% and notable contributions from Brasilseg and BB Corretora.

• Results were supported by improved insurance margins, lower claims (especially in crop and rural lines), and significant growth in financial and investment income.

• New product launches, including credit life and micro/small business insurance, contributed R$94 million and R$69 million in premiums, respectively.

• Channel diversification and digital sales advanced, with digital channels accounting for 46% of new customer sales and 330,000 digital sales in the semester.

Financial highlights

• Main revenue metric grew nearly 10% to R$3.7 billion; loss ratio improved to 21.5%, down 5.7 points year-over-year.

• Pension reserves expanded up to 9.8% to as high as R$549 billion; premium bonds collection rose 24.1% to R$1.8 billion.

• Net investment income grew up to 69% year-over-year in Q2, with mark-to-market gains contributing positively.

• Efficiency gains led to a 27% reduction in the G&A ratio and improved NPS and churn metrics.

• Dividends paid in 1H25 totaled R$4,504 million, with interim dividends of R$3,770 million approved.

Outlook and guidance

• Guidance was revised downward for premiums written (now -4% to 1% growth) and pension plan reserves (now 9%-12%) due to IOF tax and regulatory impacts.

• Crop insurance is expected to accelerate in H2, improving rural portfolio performance.

• The company continues to monitor impacts of tax reform and new accounting standards, with no immediate financial effect expected.

• All investees maintained sufficient capital, solvency, and technical provision coverage.

• Payout ratio for the year expected to be higher than H1, with surplus capital at Brasilprev.