BB Seguridade Participações S A : Dados Econômico-Financeiros

Consolidated Financial Statements - 3rd Quarter 2022

BB Seguridade Participações S.A.

		INDEX
MANAGEMENT COMMENTS ON PERFORMACE ...........................................................................................................	1
STATEMENT OF INCOME .................................................................................................................................................	3
STATEMENT OF COMPREHENSIVE INCOME.................................................................................................................	4
BALANCE SHEET..............................................................................................................................................................	5
STATEMENT OF CASH FLOWS .......................................................................................................................................	6
STATEMENT OF CHANGES IN EQUITY...........................................................................................................................	7
STATEMENT OF VALUE ADDED .....................................................................................................................................	8
EXPLANATORY NOTES TO THE FINANCIAL STATEMENTS ........................................................................................	9
1	- OPERATIONAL CONTEXT...........................................................................................................................................	9
2	- ACQUISITIONS, DISPOSALS AND CORPORATE RESTRUCTURINGS ...................................................................	9
3	- PRESENTATION OF FINANCIAL STATEMENTS.....................................................................................................	10
4	- DESCRIPTION OF KEY ACCOUNTING POLICIES...................................................................................................	13
5	- RISK MANAGEMENT.................................................................................................................................................	18
6	- SEGMENT INFORMATION ........................................................................................................................................	22
7	- INVESTMENTS IN ASSOCIATES...............................................................................................................................	25
8	- COMMISSIONS INCOME ...........................................................................................................................................	36
9	- COSTS OF SERVICES PROVIDED ...........................................................................................................................	37
10	- PERSONNEL EXPENSES........................................................................................................................................	37
11	- ADMINISTRATIVE EXPENSES AND SALES ..........................................................................................................	37
12	- TAXES ......................................................................................................................................................................	38
13	- OTHER INCOME AND EXPENSE............................................................................................................................	41
14	- FINANCIAL RESULT................................................................................................................................................	42
15	- CASH AND CASH EQUIVALENTS..........................................................................................................................	42
16	- FINANCIAL INSTRUMENTS ....................................................................................................................................	42
17	- DIVIDENDS / INTEREST ON EQUITY CAPITAL RECEIVABLE .............................................................................	43
18	- COMMISSIONS RECEIVABLE ................................................................................................................................	43
19	- INTANGIBLE ASSET ...............................................................................................................................................	44
20	- OTHER ASSETS ......................................................................................................................................................	44
21	- CORPORATE AND STATUTORY OBLIGATIONS ..................................................................................................	44
22	- PROVISIONS AND CONTINGENT LIABILITIES .....................................................................................................	44
23	- UNEARDED COMMISSIONS ...................................................................................................................................	46
24	- OTHER LIABILITIES ................................................................................................................................................	47
25	- EQUITY.....................................................................................................................................................................	47
26	- RELATED PARTY TRANSACTIONS.......................................................................................................................	50

REPORT OF INDEPENDENT AUDITORS FOR FINANCIAL STATEMENTS

DECLARATION OF THE MEMBERS OF THE EXECUTIVE BOARD ABOUT THE FINANCIAL STATEMENTS

DECLARATION OF THE MEMBERS OF THE EXECUTIVE BOARD ON THE REPORT OF THE INDEPENDENT AUDITORS

MEMBERS OF THE MANAGEMENT BODIES

Consolidated Financial Statements - 3rd Quarter 2022

BB Seguridade Participações S.A.

MANAGEMENT COMMENTS ON PERFORMACE

Dear Shareholders,

1. Seguridade Participações S.A. ("BB Seguridade" or "Company") reported a net income of R$1.7 billion (+69.3% YoY), in a quarter with strong commercial performance of insurance, pension plans and premium bonds segments, loss ratio improvement and higher net investment income. The R$676.4 million increase was mainly driven by:
2. • Brasilseg (+R$393.9 million): boosted by the growth in earned premiums (+21.5%), the drop in loss ratio, which improved in the main business lines (term life, credit life and rural), and the increase in the net investment income;
   • BB Corretora (+R$171.4 million): supported by the growth in brokerage revenues and the higher net investment income, driven by the spike in the average Selic rate and the expansion of financial investments; and
   • Brasilprev (+R$98.0 million): with a lower negative result of net investment income compared to 3Q21, explained by positive MtM result which partially offset the temporal mismatch in the adjustments of defined benefit plans reserves, which was more severe this quarter due to the sharp deceleration of inflation rates.

On the other hand, Brasilcap contribution decreased R$14.6 million, with the contraction in the net interest margin, due to the higher costs of liabilities, as a consequence of the reference rate (TR) increase, and the negative adjustment of the hedge on prefixed portfolio classified as available for sale.

Table 1 -Income Statement

			R$ thousand
	Parent		Chg.%
3Q22		3Q21
Equity Income	1,648,550	974,497	69.2
BB MAPFRE Participações S.A. (Brasilseg)	636,121	242,185	162.7
Brasilprev Seguros e Previdência S.A.	217,118	119,072	82.3
Brasilcap Capitalização S.A.	25,002	39,633	(36.9)
Brasildental Operadora de Planos Odontológicos S.A.	4,890	3,591	36.1
BB Corretora de Seguros e Administradora de Bens S.A.	750,605	579,169	29.6
Other	14,814	(9,153)	-
Other revenues and expenses	45	(1,925)	-
Personnal expenses	(3,866)	(3,007)	28.6
Administrative and sales expenses	(859)	(639)	34.4
Tax expenses	(685)	(432)	58.6
Other	5,455	2,153	153.4
Earnings before financial revenues and expenses	1,648,595	972,572	69.5
financeiras
Net investment income	5,086	4,021	26.5
Financial income	5,352	4,628	15.6
Financial expenses	(266)	(607)	(56.2)
Earnings before taxes	1,653,681	976,593	69.3
Taxes	(1,501)	(772)	94.4
Net income	1,652,180	975,821	69.3

In the 3Q22, the holding's other revenues and expenses recorded a positive balance of R$45,000, against

-R$1.9

million in the 3Q21. The performance is mainly explained by the higher volume of revenues from the ADR Level I program, accounted in "other", since the services fee revenue was booked in the 3Q22, while in 2021 this fee impacted the 4Q21.

Additionally, the personnel expenses were R$859,000 higher, due to the filling of vacant positions and the expansion in the headcount, while the administrative expenses increased R$220,000, with higher expenses with business trip and specialized technical services. The volume of tax expenses was R$253,000 higher, as a consequence of the growth in financial and ADR revenues.

The net investment income increased R$1.1 million, performance explained by the higher average Selic rate, partially offset by the retraction in the average balance of financial investments (-77.0%).

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Consolidated Financial Statements - 3rd Quarter 2022

BB Seguridade Participações S.A.

For more information about BB Seguridade's performance, including the managerial analysis of its investees, please refer to the MD&A, available at www.bbseguridaderi.com.br/en, section Financial Information, option Results Center.

RELATIONSHIP WITH INDEPENDENT AUDITORS

According to the CVM Rule 381/03, we hereby inform that, for the third quarter of 2022, BB Seguridade used the independent audit services provided by Deloitte Touche Tohmatsu Auditores Independentes ("Deloitte"), through a contract maintained by its controlling shareholder Banco do Brasil S.A.

When hiring services not related to the external audit, BB Seguridade adopts procedures based on the applicable law and on international accepted principles that preserve the auditor's independence. Such principles consist of: (i) the auditor should not audit its own work; (ii) the auditor should not perform managerial activities at his client management structure; and (iii) the auditor should not promote the interests of its client.

During the third quarter of 2022, there was no changes in the contract between the controlling shareholder (Banco do Brasil) and Deloitte.

Regarding BB Seguridade´s investees, on July 25th, 2022, it was executed an audit services contract between Deloitte and Brasilprev, effective as of July 25th, 2021, according to the table below

Company	Contract dates	Service	Fee (R$)
Start	End
Brasilprev Seguros e Previdência S.A.	07/25/2022	12/31/2022	Audit services for quality assurance of the impacts of	387,861.57
IFRS 17 and IFRS 9 adoption.

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Consolidated Financial Statements - 3rd Quarter 2022

BB Seguridade Participações S.A.

STATEMENT OF INCOME

R$ thousand (except earnings per share)

			Parent					Consolidated
	Note	3rd Quarter 2022	01.01 to	3rd Quarter 2021	01.01 to		3rd Quarter 2022	01.01 to	3rd Quarter 2021	01.01 to
	09.30.2022	09.30.2021		09.30.2022	09.30.2021
OPERATING INCOME		1,648,550	4,235,022	974,497	2,699,916	1,997,392	5,225,365	1,310,217	3,681,077
Equity income	[7.b]	1,648,550	4,235,022	974,497	2,699,916	882,516	2,255,182	400,909	1,104,543
Net commissions income	[8]	--	--	--	--	1,114,876	2,970,183	909,308	2,576,534
COST OF SERVICES PROVIDED	[9]	--	--	--	--	(51,224)	(153,024)	(49,094)	(143,528)
GROSS PROFIT		1,648,550	4,235,022	974,497	2,699,916	1,946,168	5,072,341	1,261,123	3,537,549
OTHER INCOME AND EXPENSES		45	(8,463)	(1,925)	(6,561)	(49,370)	(138,039)	(28,416)	(80,939)
Personnel expenses	[10]	(3,866)	(10,783)	(3,007)	(8,746)	(19,168)	(53,106)	(14,977)	(44,682)
Administratives and sales expenses	[11]	(859)	(2,997)	(639)	(2,401)	(10,040)	(23,540)	(4,719)	(13,629)
Tax expenses	[12.c]	(685)	(2,616)	(432)	(1,525)	(7,416)	(18,303)	(2,015)	(4,730)
Provision for brokerage to returned	[13]	--	--	--	--	(9,824)	(29,472)	(1,638)	(4,914)
Other	[13]	5,455	7,933	2,153	6,111	(2,922)	(13,618)	(5,067)	(12,984)
INCOME BEFORE FINANCIAL REVENUE AND		1,648,595	4,226,559	972,572	2,693,355	1,896,798	4,934,302	1,232,707	3,456,610
EXPENSES
FINANCIAL RESULT	[14]	5,086	12,924	4,021	16,330	150,012	325,929	38,267	81,182
Financial revenue		5,352	40,547	4,628	20,096	150,337	354,892	38,932	85,133
Financial expenses		(266)	(27,623)	(607)	(3,766)	(325)	(28,963)	(665)	(3,951)
INCOME BEFORE TAXES AND EQUITIES		1,653,681	4,239,483	976,593	2,709,685	2,046,810	5,260,231	1,270,974	3,537,792
INCOME TAX AND SOCIAL CONTRIBUTION	[12.a]	(1,501)	(1,501)	(772)	(3,100)	(394,630)	(1,022,249)	(295,153)	(831,207)
NET INCOME		1,652,180	4,237,982	975,821	2,706,585	1,652,180	4,237,982	975,821	2,706,585
Number of shares	[25.a]	2,000,000,000	2,000,000,000	2,000,000,000	2,000,000,000	2,000,000,000	2,000,000,000	2,000,000,000	2,000,000,000
Weighted average number of shares - basic and	[25.c]	1,996,726,433	1,996,709,128	1,996,686,529	1,996,667,393	1,996,726,433	1,996,709,128	1,996,686,529	1,996,667,393
diluted
Basic and diluted earnings per share (R$)	[25.c]	0.83	2.12	0.49	1.36	0.83	2.12	0.49	1.36

The accompanying notes are an integral part of these financial statements.

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