BB Seguridade Participações S A : Comunicado ao Mercado

MD&A

4Q22

#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 4Q22	2

4Q22 Earnings Conference Call

February 9th, 2023

Portuguese with simultaneous translation into English

Time: 11:00 AM (Brasilia time) 09:00 AM (EST)

Livestream via ZOOM platform

To register for the event and receive the connection

information, access: https://bbseguros- br.zoom.us/webinar/register/WN_ZD5UA2CORNOm- jint50VIQor the investor relations website www.bbseguridaderi.com.br/en

Contacts

Investor Relations

• [phone]

• [e-mail]

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

Rua Alexandre Dumas, 1671 - Térreo - Ala B Chácara Santo Antônio - São Paulo - SP CEP: 04717-903

Index

1.	Summary	4
2.	Earnings Analysis	14
3.	Balance Sheet Analysis	17
4.	Underwriting and Accumulation	20
	Brasilseg	23
	Brasilprev	44
	Brasilcap	59
	Brasildental	73
5.	Distribution	75
5.1	BB Corretora	76
6.	Definitions	84

BB Seguridade Participações S.A. | Management Discussion & Analysis 4Q22	3

#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. %	Annual Flow	Chg. %
R$ thousand	4Q21	3Q22	4Q22	On 4Q21	On 3Q22	2021	2022	On 2021
Equity income	1,223,678	1,648,550	1,807,766	47.7	9.7	3,923,594	6,042,788	54.0
Underwritting and accumulation businesses	728,785	883,131	1,108,437	52.1	25.5	1,842,988	3,364,438	82.6
Brasilseg	401,288	636,121	636,033	58.5	(0.0)	1,067,020	2,081,551	95.1
Brasilprev	406,968	217,118	425,461	4.5	96.0	756,544	1,116,786	47.6
Brasilcap	(83,753)	25,002	41,959	-	67.8	2,341	145,199	6,101.7
Brasildental	4,283	4,890	4,985	16.4	1.9	17,083	20,902	22.4
Distribution businesses	552,870	750,605	771,759	39.6	2.8	2,162,039	2,729,478	26.2
Other	(57,977)	14,814	(72,431)	24.9	-	(81,433)	(51,128)	(37.2)
G&A expenses	(4,772)	(5,542)	(5,568)	16.7	0.5	(17,788)	(23,000)	29.3
Net investment income	9,331	10,673	3,939	(57.8)	(63.1)	32,117	25,833	(19.6)
Earnings before taxes and profit sharing	1,228,237	1,653,681	1,806,137	47.1	9.2	3,937,922	6,045,621	53.5
Taxes	(1,605)	(1,501)	451	-	-	(4,705)	(1,050)	(77.7)
Net income	1,226,632	1,652,180	1,806,588	47.3	9.3	3,933,217	6,044,571	53.7

In 4Q22, BB Seguridade reported net income of R$1.8 billion

(+47.3% YoY). The R$580.0 million increase was mainly driven by:

• Brasilseg (+R$234.7 million): boosted by the growth of retained earned premiums, loss ratio improvement, especially in term life and crop insurances, and higher net investment income;
• BB Corretora (+R$218.9 million): sustained by the evolution of brokerage revenues, due to the success of commercial incentives to Banco do Brasil's sales force, and the increase in the net investment income, with the higher Selic rate and the expansion of interest earning assets;
• Brasilcap (+R$125.7 million): explained by the financial result, with improvement in the net interest margin supported by the higher yield on earning assets, which was negatively impacted in 4Q21 by market-to-market losses in the disposal of prefixed income bonds available for sale; and
• Brasilprev (+R$18.5 million): positively impacted by the lower tax rate in the quarter, driven by the tax benefit arising from IoC distribution, the higher tax credit arising from "Lei do Bem" and the lower CSLL rate, which had been increased by 5.0 p.p. in the second half of 2021.

In 2022, net income increased R$2.1 billion (+53.7%), to R$6.0 billion, highlighting:

1. • Brasilseg (+R$1.0 billion): supported by the evolution in earned premiums, loss ratio improvement and growth of net investment income;
   • BB Corretora (+R$567.4 million): with brokerage revenues increase in all business lines and higher financial results;
   • Brasilprev (+R$360.2 million): driven by the improvement in the net investment income, with the expansion of the average balance of earning assets, lower negative impact of MtM results in the comparative and the convergence of the inflation rates pegged to assets and liabilities of traditional plans; and
2. Seguridade Participações S.A. | Management Discussion & Analysis 4Q22

Figure 1 - Non-interest operating results¹

	Chg. On 4Q21	Chg. On 2021
Brasilseg	25.5%	83.5%
Brasilprev	(11.7% )	0.3%
Brasilcap	-	(65.8% )
Brasildental	4.0%	6.7%
BB Corretora	35.0%	19.4%
Total	21.0%	27.9%

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

Figure 2 - Normalized net income (R$ million)

6,048

									6,045
									3,941
1,227					1,807		3,933
			1,753	1,687
1,123	1,652
103		(101)			120		(7)			(3)
4Q21	3Q22		4Q22	2021	2022
	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.

• Brasilcap (+R$142.9 million): sustained by the improvement in the net investment income. The performance is attributed to the higher yield and to the expansion of the average balance of earning assets.

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#Pública

• 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

	25.3
	18.0
10.8	14.1
	2.8
	1,088

		457
	232
133			110
4Q21	3Q22	4Q22	2021	2022

In 4Q22, the consolidated financial result of BB Seguridade and its investees reached R$456.5 million, a volume more than 3x higher than the one recorded in the 4Q21. The higher average Selic rate and the expansion of the average balance of earning assets were the main drivers to the growth. It is worth noting that the fourth quarter of 2021 was negatively impacted by MtM losses in the disposal of prefixed bonds available for sale at Brasilcap and, to a lesser extent, at Brasilseg.

In the year, the combined financial result amounted to R$1.1 billion, compared to R$109.9 million in 2021. The following effects had contributed to the impressive growth: (i) the spike of the average Selic rate, with positive impacts to all companies within the group; (ii) the strong evolution of Brasilprev's net investment income, with expansion in the volume of earning assets, the parity of inflation rates that adjust assets and liabilities of defined benefit plans and the lower negative MtM impact, considering the lesser extent of the upward shifting of the forward yield curve as compared to 2021.

Net investment income (R$ million)

% Net income

Figure 4 - Inflation rate (%)

5.5

3.0		3.7
4.6
			1.6
1.5	3.2	2.5	0.1	-1.1
		2.2
0.02			-1.3
			-1.4	-2.5

4Q21	1Q22	2Q22	3Q22	4Q22
	IPCA	IGP-M	IGP-M (lagged)¹

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

Figure 7 - Financial investments (%)

	7.9
Dec/22	38.9
	53.2
	8.2
Sep/22	39.6
	52.2
	9.0
Dec/21	31.9
	59.1
	Available for sale
	Trading
	Held to maturity

Figure 5 - Average Selic rate (%)

13.47	13.65
12.37
10.42
7.62

4Q21

1Q22

2Q22

3Q22

4Q22

Figure 8 - Financial investments by index (%)

0.1

Dec/22	16.2
29.6
	54.1
	0.2
Sep/22	14.6
30.2
	55.1
	0.1
Dec/21	20.3
21.7
	58.0
	Other
	Pre-fixed
	Floating
	Inflation

Figure 6 - Forward yield curve (%)

13.70

	13.45
13.67		12.70	12.60	12.61	dec/22
11.78	12.81
11.61	11.50	11.54
		sep/22
	10.99	10.60		10.63
		10.51	sep/21
			10.45	10.57	dec/21
		10.25
	9.90

9.16
DI1F23	DI1F24	DI1F25	DI1F26	DI1F27

Figure 9 - Trading portfolio by index

(%)

0.2

Dec/22 3.8 20.0

76.0

0.5

Sep/22 3.4 20.3

75.8

	0.3
Dec/21	4.1
28.6

67.0

Other Pre-fixed Inflation Floating

BB Seguridade Participações S.A. | Management Discussion & Analysis 4Q22	5