BB Seguridade Participações (BBSE3) Q2 2025 earnings summary

Executive summary

• Net income excluding extraordinary events reached R$3.2 billion in Q2 2025, up 50% year-over-year, with annualized ROE at 90%, advancing 15 percentage points from last year.

• Recurring managerial net income reached R$2.24 billion in 2Q25, up 19.7% year-over-year, driven by strong performances in Brasilseg, BB Corretora, and Brasilprev.

• Accumulated H1 2025 net income was R$4.24 billion, up 14%, with ROA at 93%, a 12-point increase.

• Results driven by 11.3% growth in operating income and 69% increase in financial income due to efficient asset management.

• Channel diversification and digital sales advanced, with 330,000 digital sales and 46% new customers 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 9.4% to R$449 billion; premium bonds collection rose 24.1% to R$1.8 billion.

• Net investment income grew 68.8% year-over-year in Q2; mark-to-market gains contributed positively.

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

• Combined ratio improved due to lower loss ratio and operational efficiency.

Outlook and guidance

• Guidance revised downward due to IOF tax impact on PGBL/VGBL pension products, affecting collections and operating results.

• Premiums written expected to range from -4% to 1% growth; pension plan reserves growth revised to 9%-12%.

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

• Non-interest operating result growth for 1H25 was 7.4%, within the revised annual guidance range of 1–4%.

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