BB Seguridade Participações S A : Dados Econômico-Financeiros

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Consolidated Financial Statements - 1st Quarter 2023

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BB Seguridade Participações S.A.

		INDEX
MANAGEMENT COMMENTS ON PERFORMACE	1
STATEMENT OF INCOME	2
STATEMENT OF COMPREHENSIVE INCOME	2
BALANCE SHEET	3
STATEMENT OF CASH FLOWS	4
STATEMENT OF CHANGES IN EQUITY	5
STATEMENT OF VALUE ADDED	6
EXPLANATORY NOTES TO THE FINANCIAL STATEMENTS	7
1	- OPERATIONAL CONTEXT	7
2	- ACQUISITIONS, DISPOSALS AND CORPORATE RESTRUCTURINGS	7
3	- PRESENTATION OF INTERIM FINANCIAL STATEMENTS	9
4	- DESCRIPTION OF KEY ACCOUNTING POLICIES	15
5	- RISK MANAGEMENT	20
6	- SEGMENT INFORMATION	24
7	- INVESTMENTS IN ASSOCIATES	27
8	- COMMISSIONS INCOME	41
9	- COSTS OF SERVICES PROVIDED	42
10	- PERSONNEL EXPENSES	42
11	- ADMINISTRATIVE EXPENSES AND SALES	42
12	- TAXES	42
13	- OTHER INCOME AND EXPENSE	45
14	- FINANCIAL RESULT	45
15	- CASH AND CASH EQUIVALENTS	45
16	- FINANCIAL INSTRUMENTS	46
17	- DIVIDENDS / INTEREST ON EQUITY CAPITAL RECEIVABLE	46
18	- COMMISSIONS RECEIVABLE	47
19	- INTANGIBLE ASSET	47
20	- OTHER ASSETS	48
21	- CORPORATE AND STATUTORY OBLIGATIONS	48
22	- PROVISIONS AND CONTINGENT LIABILITIES	48
23	- UNEARDED COMMISSIONS	51
24	- OTHER LIABILITIES	51
25	- EQUITY	51
26	- RELATED PARTY TRANSACTIONS	55

REPORT OF INDEPENDENT AUDITORS FOR FINANCIAL STATEMENTS

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

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

MEMBERS OF THE MANAGEMENT BODIES

Consolidated Financial Statements - 1st Quarter 2023

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BB Seguridade Participações S.A.

MANAGEMENT COMMENTS ON PERFORMACE

Dear Shareholders,

In the first quarter of 2023, BB Seguridade Participações S.A. ("BB Seguridade" or "Company") reported net income of R$1,833 million (+51.5% YoY), in a quarter with strong commercial performance of insurance, pension plans and premium bonds segments, loss ratio improvement and financial results growth.

The main highlights explaining the R$617.8 million increase of net income as compared to the 1Q22 were:

• Brasilseg (+R$372.5 million): propelled by the growth of insurance margin and the spike of financial results;
• BB Corretora (+R$132.4 million): sustained by the evolution of brokerage revenues and higher financial results;
• Brasilprev (+R$111.8 million): due to the increase of insurance margin; and
• Brasilcap (+R$6.4 million): boosted by the expansion of financial results, led by the increase of average volumes and, to a lesser extent, the higher financial margin.

The negative balance of holding's other revenues and expenses grew by 75.7%, mostly driven by higher tax expenses on financial revenues and, to a lesser extent, the increase of personnel expenses, due to the headcount expansion and the adjustment of wages after the collective bargaining agreement signed in September 2022.

The financial results fell 36.5%, justified by the retraction of the average balance of financial investments, partially offset by the higher Selic rate.

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

In the first quarter of 2023, BB Seguridade hired 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.

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Consolidated Financial Statements - 1st Quarter 2023

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BB Seguridade Participações S.A.

STATEMENT OF INCOME

R$ thousand (except earnings per share)

		Parent		Consolidated
	Note	1st Quarter 2023	1st Quarter 2022		1st Quarter 2023	1st Quarter 2022
		Restated balances			Restated balances
Operating Income		1,836,112	1,209,170	2,193,298	1,541,395
Equity income	[7.b]	1,836,112	1,209,170	1,125,031	635,370
Net commissions income	[8]	--	--	1,068,267	906,025
Cost of Services Provided	[9]	--	--	(50,722)	(48,037)
Gross Profit		1,836,112	1,209,170	2,142,576	1,493,358
Other Income and Expenses		(5,465)	(3,109)	(39,514)	(42,663)
Personnel expenses	[10]	(3,640)	(3,306)	(19,562)	(16,390)
Administratives and sales expenses	[11]	(721)	(632)	(9,029)	(5,878)
Tax expenses	[12.c]	(4,080)	(1,630)	(12,106)	(5,317)
Provision for brokerage to returned	[13]	--	--	--	(9,824)
Other	[13]	2,976	2,459	1,183	(5,254)
Income Before Financial Revenue and		1,830,647	1,206,061	2,103,062	1,450,695
Expenses
Financial Result	[14]	2,312	3,642	96,198	58,142
Financial revenue		81,823	30,227	175,795	85,950
Financial expenses		(79,511)	(26,585)	(79,597)	(27,808)
Income Before Taxes and Equities		1,832,959	1,209,703	2,199,260	1,508,837
Income Tax and Social Contribution	[12.a]	--	(186)	(366,301)	(299,320)
Net Income		1,832,959	1,209,517	1,832,959	1,209,517

Number of shares

Weighted average number of shares - basic and diluted

Basic and diluted earnings per share (R$)

[25.a]	2,000,000,000	2,000,000,000	2,000,000,000	2,000,000,000
[25.c]	1,996,734,226	1,996,686,529	1,996,734,226	1,996,686,529
[25.c]	0.92	0.59	0.92	0.59

The explanatory notes are an integral part of the interim financial statements. The opening balance sheet and restatements refer to the adoption of CPC 50 [IFRS 17] - Insurance Contracts and CPC 48 [IFRS 9] - Financial Instruments, whose effects are detailed in Note 03 - Presentation of Financial Statements.

STATEMENT OF COMPREHENSIVE INCOME

						R$ thousand
		Parent			Consolidated
		1st Quarter 2023	1st Quarter 2022		1st Quarter 2023	1st Quarter 2022
	Note		Restated balances			Restated balances
Net Income		1,832,959	1,209,517	1,832,959	1,209,517
Share of comprehensive income	[09.	185,388	(21,932)	185,388	(21,932)
Gains/(losses) on financial assets available for		46,955	(26,386)	46,955	(26,386)
sale
Other comprehensive results		262,015	(10,167)	262,015	(10,167)
Effects CPC 48 and 50		261,936	(10,167)	261,936	(10,167)
other		79	--	79	--
Tax effect		(123,582)	14,621	(123,582)	14,621
Total Comprehensive Income		2,018,347	1,187,585	2,018,347	1,187,585

The explanatory notes are an integral part of the interim financial statements. The opening balance sheet and restatements refer to the adoption of CPC 50 [IFRS 17] - Insurance Contracts and CPC 48 [IFRS 9] - Financial Instruments, whose effects are detailed in Note 03 - Presentation of Financial Statements.

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					Consolidated Financial Statements - 1st Quarter 2023
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								BB Seguridade Participações S.A.
	BALANCE SHEET
									R$ thousand
				Parent				Consolidated
				Dec 31, 2022	Jan 01, 2022			Dec 31, 2022	Jan 01, 2022
		Note	Mar 31, 2023	Restated	(opening		Mar 31, 2023	Restated	(opening
				balances	balance)			balances	balance)
	Current Assets		77,959	3,768,306	1,956,417	3,915,032	7,221,098	5,125,631
	Cash and cash equivalents	[15]	48,679	59,003	369,342	2,814,754	6,076,618	4,090,561
	Dividends/interest on equity	[17]	--	3,683,356	1,572,428	--	13,519	1,648
	receivable
	Current tax assets	[12.d]	17,846	16,131	1,928	40,265	16,131	1,928
	Commissions receivable	[18]	--	--	--	1,054,924	1,114,256	1,026,158
	Other assets	[20]	11,434	9,816	12,719	5,089	574	5,336
	Non-Current Assets		9,981,141	7,946,188	7,283,142	10,482,812	9,340,804	8,303,731
	Financial assets at fair value	[16.a]	17,246	18,064	14,011	1,024,746	368,281	14,011
	through profit or loss
	Current tax assets	[12.d]	89,570	75,177	68,332	96,855	80,977	84,337
	Deferred tax assets	[12.e]	28	28	10	8,268	7,773	35,420
	Commissions receivable	[18]	--	--	--	785,876	708,990	698,435
	Investments in associates	[7.b]	9,870,339	7,848,840	7,195,790	8,338,318	7,948,880	7,252,382
	Intangible	[19]	3,905	4,021	4,959	3,905	4,021	4,959
	Other assets	[20]	53	58	40	224,844	221,882	214,187
	Total Assets		10,059,100	11,714,494	9,239,559	14,397,844	16,561,902	13,429,362
	Current Liabilities		11,705	3,686,295	1,842,974	2,081,272	6,508,168	3,999,277
	Statutory obligation	[21]	299	3,674,027	1,831,691	299	3,674,027	1,831,691
	Contingent liabilities	[22]	21	53	--	6,418	4,431	4,996
	Current tax liabilities	[12.g]	557	31	444	258,672	963,874	762,519
	Unearned commissions	[23]	--	--	--	1,705,334	1,760,473	1,172,483
	Other liabilities	[24]	10,828	12,184	10,839	110,549	105,363	227,588
	Non-Current Liabilities		61	28	28	2,269,238	2,025,563	2,033,528
	Contingent liabilities	[22]	61	28	28	8,920	9,451	10,419
	Deferred tax liabilities	[12.h]	--	--	--	228,565	228,565	228,565
	Unearned commissions	[23]	--	--	--	2,031,753	1,787,547	1,794,544
	Total Liabilities		11,766	3,686,323	1,843,002	4,350,510	8,533,731	6,032,805
	Equity		10,047,334	8,028,171	7,396,557	10,047,334	8,028,171	7,396,557
	Capital	[25.a]	6,269,692	6,269,692	3,396,767	6,269,692	6,269,692	3,396,767
	Capital reserves	[25.b]	1,801	1,571	1,508	1,801	1,571	1,508
	Income reserves	[25.b]	1,552,229	1,552,229	4,122,925	1,552,229	1,552,229	4,122,925
	Treasury shares	[25.g.4]	(79,758)	(80,344)	(81,320)	(79,758)	(80,344)	(81,320)
	Other accumulated	[25.e]	203,426	18,038	(158,464)	203,426	18,038	(158,464)
	comprehensive income
			2,099,944	266,985	115,141	2,099,944	266,985	115,141
	Total Equity		10,047,334	8,028,171	7,396,557	10,047,334	8,028,171	7,396,557
	Total Liabilities and Equity		10,059,100	11,714,494	9,239,559	14,397,844	16,561,902	13,429,362

The explanatory notes are an integral part of the interim financial statements. The opening balance sheet and restatements refer to the adoption of CPC 50 [IFRS 17] - Insurance Contracts and CPC 48 [IFRS 9] - Financial Instruments, whose effects are detailed in Note 03 - Presentation of Financial Statements.

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