MD&A

2Q22

#Pública

  • P R E S E N T A T I O N

The Management Discussion and Analysis - MD&A presents the economic and financial status of BB Seguridade Participações S.A. (BB Seguridade). Directed to financial analysts, shareholders and investors, this quarterly report provides an analysis of economic and financial

indicators of BB Seguridade, stocks' performance and other aspects considered relevant for the assessment of the company's

achievements.

The consolidated financial statements were prepared in compliance with the International Financial Reporting Standards - IFRS.

All the analyses in this report are based on IFRS Financial Statements, but are occasionally supplemented by managerial data, besides other information calculated based on accounting principles determined by the Superintendência de Seguros Privados - SUSEP (the regulator of the insurance industry in Brazil).

In the investees, since the fourth quarter of 2020, the financial statements are prepared in compliance with the accounting standard of the respective regulator, except when mentioned in a different accounting standard.

  • O N - L I N E A C C E S S

This MD&A is available at BB Seguridade's IR website, where additional information about the Company is also available such as: corporate

structure, corporate governance, historical data, among other important information for shareholders and investors. The company's website can be accessed through www.bbseguridaderi.com.br.

This report makes references and statements about expectations, expected synergies, growth estimates, earnings forecasts and future strategies regarding BB Seguridade. Such statements are based on current expectations, estimates and projections of the Managementabout future events and financial trends that may affect the businesses that the company is involved in.

These forward looking statements are not guarantee of future performance and involve risks and uncertainties that could overextendthe control of the management, and thus can result in balances and values different from those anticipated and discussed in this report. The expectations and projections depend on market conditions (technological changes, competitive constraints on products, prices, etc.), on the country's macroeconomic performance (interest and exchange rates, political and economic changes, inflation, changes in tax rules, etc.) and on international markets.

Future expectations based on this report should consider the risks and uncertainties that involve BB Seguridade's businesses. BBSeguridade has no responsibility to update any estimate contained either in this report or in previously published reports.

Tables and charts in this report show, in addition to the accounting balances, financial and managerial figures. The relative variationrates are calculated before the rounding procedure in R$ million. The rounding method used follows the rules established by Resolution 886/66 of IBGE's Foundation: if the decimal number is equal or greater than 0.5, it increases by one unit, if the decimalnumber is less than 0.5, there is no increase.

BB Seguridade Participações S.A. | Management Discussion & Analysis 2Q22

2

2Q22 Earnings Conference Call

August 8th, 2022

Portuguese with simultaneous translation into English

Time: 11:00 AM (Brasilia time) 10:00 AM (EDT)

Livestream via ZOOM platform

To register for the event and receive the connection

information, access: https://bbseguros- br.zoom.us/webinar/register/WN_LQmaqhZBTz2y- _DO2jqb_Qor the investor relations website www.bbseguridaderi.com.br/en

Contacts

Investor Relations

  • +55 (11) 4297-0730
  • ri@bbseg.com.br

IR Website: www.bbseguridaderi.com.br/en

Rua Alexandre Dumas, 1671 - Térreo - Ala B

Chácara Santo Antônio - São Paulo - SP

CEP: 04717-903

BB Seguridade Participações S.A. | Management Discussion & Analysis 2

#Pública

Index

1.

Summary

4

2.

Earnings Analysis

14

3.

Balance Sheet Analysis

17

4.

Underwriting and Accumulation

20

Brasilseg

23

Brasilprev

44

Brasilcap

58

Brasildental

72

5.

Distribution

74

5.1

BB Corretora

75

6.

Definitions

83

#Pública

1 . S U M M A R Y

  • N E T I N C O M E A N A L Y S I S

Table 1 - Income statement of the holding

Quarterly Flow

Chg. %

Half-Yearly Flow

Chg. %

R$ thousand

2Q21

1Q22

2Q22

On 2Q21

On 1Q22

1H21

1H22

On 1H21

Equity income

754,070

1,179,084

1,407,388

86.6

19.4

1,725,419

2,586,472

49.9

Underwritting and accumulation businesses

235,438

606,122

766,748

225.7

26.5

709,722

1,372,870

93.4

Brasilseg

178,468

262,552

546,845

206.4

108.3

423,547

809,397

91.1

Brasilprev

38,631

301,909

172,298

346.0

(42.9)

230,505

474,207

105.7

Brasilcap

14,217

35,456

42,783

200.9

20.7

46,461

78,239

68.4

Brasildental

4,122

6,205

4,822

17.0

(22.3)

9,210

11,027

19.7

Distribution businesses

523,629

575,304

631,810

20.7

9.8

1,030,000

1,207,114

17.2

Other

(4,997)

(2,343)

8,830

-

-

(14,304)

6,488

-

G&A expenses

(4,582)

(5,990)

(5,900)

28.8

(1.5)

(8,856)

(11,890)

34.3

Net investment income

4,015

6,523

4,698

17.0

(28.0)

16,529

11,221

(32.1)

Earnings before taxes and profit sharing

753,503

1,179,617

1,406,185

86.6

19.2

1,733,092

2,585,802

49.2

Taxes

199

(186)

186

(6.6)

-

(2,328)

-

-

Net income

753,702

1,179,431

1,406,371

86.6

19.2

1,730,764

2,585,802

49.4

In 2Q22, BB Seguridade reported net income of R$1.4 billion (+86.6% YoY), with a strong growth in sales, loss ratio improvement and higher net investment income. The R$652 million increase was mainly driven by:

Brasilseg (+R$368.4 million): boosted by the drop in loss ratio, with a significant improvement observed in the main business lines (term life, credit life and rural), in addition to the increase in the net investment income, explained by the higher average Selic rate;

Brasilprev (+R$133.7 million): supported by the growth of revenues with management fee and by the lower negative balance of net investment income, which was caused by the expansion of the average balance of earning assets and the decrease in the average yield on interest bearing liabilities related to the technical reserves of traditional plans;

  1. Corretora (+R$108.2 million): impacted by the growth in brokerage revenues and the evolution of the net investment income, driven by the spike in the average Selic rate; and

Brasilcap (+R$28.6 million): with the increase in the net interest margin, due to the higher average Selic rate and the positive adjustment of the hedged prefixed portfolio classified as available for sale.

Year-to-date, net income increased R$855.0 million (+49.4%), to R$2.6 billion, highlighting Brasilseg (+R$385.9 million), which posted higher net investment income and significant loss ratio improvement.

The result from Brasilprev was R$243.7 million higher than in the 1H21, driven by the improvement in the net investment income, positively impacted by the expansion in the average balance of held to maturity assets and by a smaller gap between the inflation rates that adjusted the assets and liabilities of traditional plans.

Figure 1 - Non-interest operating results¹

Chg. On 2Q21

Chg. On 1H21

Brasilseg

281.7%

110.3%

Brasilprev

4.0%

5.3%

Brasilcap

(27.4% )

(37.4% )

Brasildental

1.3%

3.0%

BB Corretora

11.5%

10.1%

Total

44.0%

25.1%

¹Non-interest operating results before taxes, weighted by the equity stake

Figure 2 - Normalized net income (R$ million)

2,609

1,179

1,406

1,482

1,773

2,586

896

1,127

1,731

754

(143)

52

(75)

(42)

(23)

2Q21

1Q22

2Q22

1H21

1H22

Net income

IGP-M lag

Normalized net income¹

1. Net income excluding the impacts of the one-month lag in the IGP-M accrual on liabilities.

The contribution arising from BB Corretora increased R$177.1 million, supported by higher brokerage revenues and by the evolution of net investment income, while the result from Brasilcap grew R$31.8 million, with the rise in net interest margin.

BB Seguridade Participações S.A. | Management Discussion & Analysis 2Q22

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N E T I N V E S T M E N T I N C O M E A N A L Y S I S

Figure 3 - Consolidated investment income

19.7

11.8

(13.5)

232

166

In 2Q22, the combined net investment income of BB Seguridade

15.4and its investees reached R$166.5 million, compared to a negative

balance of R$101.7 million recorded in the same period of 2021.

399

The performance is largely explained by the spike in the average

Selic rate, which positively impacted all companies, and to the

(2.1)

improvement in Brasilprev's financial result. The IGP-M

deceleration, resulting in lower cost of liabilities related to

traditional plans, combined with the higher IPCA, which on the

asset side partially offset the negative impact of the lower IGP-M

in the returns of held to maturity portfolio, were the main factors

that contributed to the improvement of Brasilprev's net

investment income. On the other hand, the temporal mismatch

in asset and liabilities' adjustments and, mainly, the R$144.2

million negative result of mark-to-market related to the upward

shifting of the forward yield curve were the main drivers of

Brasilprev's negative financial result in the quarter, explaining the

decline in the consolidated figure compared to 1Q22.

-102

2Q21

1Q22

2Q22

Net investment income (R$ million)

-37

1H211H22

% Net income

In 1H22, the combined net investment income of the group's companies was positive by R$398.6 million, compared to negative result of R$37.0 million in 1H21. The improvement resulted from the higher average Selic rate and the Brasilprev's net investment income growth, which was benefited from a lower impact of the mismatch in the inflation rates that adjust most of the assets (IPCA and IGP-M) and liabilities (IGP-M with one- month lag) of traditional plans and by the expansion in the balance of financial assets.

Figure 4 - Inflation rate (%)

Figure 5 - Average Selic rate (%)

Figure 6 - Forward yield curve (%)

8.8

12.37

13.76

13.44

12.75

10.42

12.63

12.65

jun/22

5.5

7.62

12.71

6.3

4.6

3.7

12.06

mar/22

3.0

3.0

11.39

11.21

11.20

4.86

8.69

2.1

2.5

7.71

8.06

8.40

mar/21

1.5

3.2

3.24

7.08

jun/21

2.2

8.49

1.7

8.05

8.27

0.8

7.46

0.02

6.39

2Q21

3Q21

4Q21

1Q22

2Q22

2Q21

3Q21

4Q21

1Q22

2Q22

IPCA

IGP-M

IGP-M (lagged)¹

DI1F23

DI1F24

DI1F25

DI1F26

DI1F27

1. IGP-M with a lag of one month.

Figure 7 - Financial investments (%)

8.9

Jun/22

33.1

58.0

9.1

Mar/22

34.2

56.7

15.7

Jun/21

30.2

54.1

Available for sale

Trading

Held to maturity

Figure 8 - Financial investments by index (%)

0.1

Jun/22

16.1

22.7

61.1

0.1

Mar/22

16.0

23.6

60.3

0.2

Jun/21

27.9

18.8

53.0

Other

Pre-fixed

Floating

Inflation

Figure 9 - Trading portfolio by index

(%)

0.3

Jun/22

4.8

27.3

67.7

0.3

Mar/22

4.1

27.6

68.0

0.7

Jun/21

7.4

30.7

61.1

Other

Pre-fixed

Inflation

Floating

BB Seguridade Participações S.A. | Management Discussion & Analysis 2Q22

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BB Seguridade Participações SA published this content on 08 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 August 2022 10:44:01 UTC.