BB Seguridade Participações S.A.

On a quarterly basis, Rafael Sperendio said 2Q26 income was close to BRL 2.2 billion, down 3% year over year, mainly because investment income fell on negative mark-to-market of BRL 12 million after taxes versus BRL 34 million positive in 2Q25, and because Brasilprev liabilities were updated with a much higher IGP-M lag effect than a year ago. For the first half, Delano de Andrade highlighted recurring managerial net income of BRL 4.4 billion, up 3.2% year over year; net operating income after taxes of BRL 3.5 billion, up BRL 0.3 billion; net investment income after taxes of BRL 909.1 million, up more than 16%; retained premiums of BRL 7 billion, roughly stable; pension reserves of BRL 496.5 billion, up 10.6%; net inflow of BRL 2.8 billion in pensions; and premium bond collections of BRL 3.4 billion. Management said 1H26 dividends totaled BRL 3.9 billion, with an almost 88% payout, and premium bond prize payments were almost BRL 42 million, up 36%. Full-year guidance was discussed as well: pension reserves ended at 11%, at the top of the 8% to 11% range; written premiums were still below target at 0.5% below the bottom of the range; and non-interest operating results were at -0.2%, outside the expected -7% to -3% range. Management said the main driver for the rest of the year will be crop insurance recovery, and that getting back into range is still feasible.

Delano emphasized execution discipline in a difficult environment, saying the group is managing more closely across the conglomerate to improve efficiency both in customer service and expenses. He framed the first half as evidence of BB Seguridade’s resilience, pointing to stable insurance retained premiums, strong pension reserves, and rising premium bond collections. His tone was confident but cautious, and he stressed continued joint work with Banco do Brasil to develop new journeys and products that better fit a high-rate backdrop.

Rafael walked through the main financial drivers in detail, explaining that quarterly net income was pressured by lower investment income, especially negative mark-to-market and the IGP-M/IPCA mismatch in Brasilprev. He noted that the first half benefited from the high Selic rate, time-mismatch effects, and improved operational efficiency, while insurance results were mixed: better loss ratios and fee growth were partly offset by weaker agricultural premiums. He also pointed to stronger pension dynamics, including BRL 496.5 billion in reserves, BRL 2.8 billion of net inflow, and a significant drop in redemption rates, while saying premium bond investment income improved on better financial margins.

Analysts focused heavily on rural insurance, especially the impact of El Niño, crop loss ratios, and whether weak crop premiums and lower loss ratios represent a new normal. Management said 2026 should see only a limited El Niño impact on the P&L, with the bigger risk being potential effects on 2027 planting and the second crop if rainfall patterns worsen later this year; they also said rural exposure in the broader book is limited. Questions also covered tax reform, credit life recovery, broker commission rates, the government’s rural insurance subsidy and possible catastrophe fund, and whether higher expenses are recurring; management said tax impacts are still unclear, credit life improved on better payroll-loan dynamics and partial product redesign, commission rates should normalize lower over time if crop share stays weak, and expense control remains an everyday priority.