BB Seguridade Participações S A : Dados Econômico-Financeiros

Consolidated Financial Statements - 1st Half 2023

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BB Seguridade Participações S.A.

		INDEX
MANAGEMENT COMMENTS ON PERFORMACE	1
STATEMENT OF INCOME	2
STATEMENT OF COMPREHENSIVE INCOME	3
BALANCE SHEET	4
STATEMENT OF CASH FLOWS	5
STATEMENT OF CHANGES IN EQUITY	6
STATEMENT OF VALUE ADDED	7
EXPLANATORY NOTES TO THE FINANCIAL STATEMENTS	8
1	- OPERATIONAL CONTEXT	8
2	- ACQUISITIONS, DISPOSALS AND CORPORATE RESTRUCTURINGS	9
3	- PRESENTATION OF INTERIM FINANCIAL STATEMENTS	10
4	- DESCRIPTION OF KEY ACCOUNTING POLICIES	18
5	- RISK MANAGEMENT	23
6	- SEGMENT INFORMATION	27
7	- INVESTMENTS IN ASSOCIATES	30
8	- COMMISSIONS INCOME	44
9	- COSTS OF SERVICES PROVIDED	44
10	- PERSONNEL EXPENSES	44
11	- ADMINISTRATIVE EXPENSES AND SALES	45
12	- TAXES	45
13	- OTHER INCOME AND EXPENSE	48
14	- FINANCIAL RESULT	49
15	- CASH AND CASH EQUIVALENTS	50
16	- FINANCIAL INSTRUMENTS	50
17	- DIVIDENDS / INTEREST ON EQUITY CAPITAL RECEIVABLE	51
18	- COMMISSIONS RECEIVABLE	51
19	- INTANGIBLE ASSET	52
20	- OTHER ASSETS	52
21	- CORPORATE AND STATUTORY OBLIGATIONS	52
22	- PROVISIONS AND CONTINGENT LIABILITIES	53
23	- UNEARDED COMMISSIONS	55
24	- OTHER LIABILITIES	56
25	- EQUITY	56
26	- RELATED PARTY TRANSACTIONS	59
27	- EVENTS AFTER THE REPORTING PERIOD	62

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 Half 2023

#interna

BB Seguridade Participações S.A.

MANAGEMENT COMMENTS ON PERFORMACE

Dear Shareholders,

In the second quarter of 2023, BB Seguridade Participações S.A. ("BB Seguridade" or "Company") reported net income of R$1,892 million (+25.8% YoY).

The main highlights explaining the R$388.4 million increase of net income as compared to the 2Q22 were:

• Brasilseg (+R$210.5 million): propelled by the growth of insurance margin and, to a lesser extent, the increase of financial results;
• Brasilprev (+R$84.0 million): due to the increase of insurance margin, partially offset by lower financial results; and
• BB Corretora (+R$75.0 million): sustained by the evolution of brokerage revenues and, to a lesser extent, the higher financial results;

The negative balance of holding's other revenues and expenses improved R$525,000 (-9.7%), mostly driven by:

• the lower personnel expenses, after changes in the percentages of costs allocation to the holdings and BB Corretora;
• the drop in administrative expenses, with the decrease of communication costs, as the shareholder's income statements related to FY2022 were sent digitally, avoiding posting expenses. In 2Q22, these costs reached R$518,000; and
• the higher volume of revenues from the ADR Level I program, accounted in "other operating income and expenses", due to the increase in the number of ADRs issued as compared to the 2Q22.

On the other hand, the aforementioned effects were partially offset by higher tax expenses on holding's financial revenues.

The financial results were up 147.9%, justified by the expansion of the average balance of financial investments and the higher average 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.

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Consolidated Financial Statements - 1st Half 2023

BB Seguridade Participações S.A.

STATEMENT OF INCOME

R$ thousand (except earnings per share)

				Parent					Consolidated
	Note	2nd Quarter 2023	1st Half 2023	2nd	Quarter 2022	1st Half 2022		2nd Quarter 2023	1st Half 2023	2nd Quarter 2022	1st Half 2022
	Restated balances	Restated balances		Restated balances	Restated balances
Operating Income		1,886,878	3,722,987		1,504,744	2,713,914	2,216,183	4,409,481	1,814,021	3,355,415
Equity income	[7.b]	1,886,878	3,722,987		1,504,744	2,713,914	1,160,720	2,285,751	864,739	1,500,108
Net commissions income	[8]	--	--		--	--	1,055,463	2,123,730	949,282	1,855,307
Cost of Services Provided	[9]	--	--		--	--	(50,139)	(100,861)	(53,763)	(101,800)
Gross Profit		1,886,878	3,722,987		1,504,744	2,713,914	2,166,044	4,308,620	1,760,258	3,253,615
Other Income and Expenses		(4,874)	(10,336)		(5,399)	(8,508)	(50,352)	(89,866)	(46,007)	(88,669)
Personnel expenses	[10]	(3,207)	(6,847)		(3,611)	(6,917)	(21,896)	(41,458)	(17,548)	(33,938)
Administratives and sales expenses	[11]	(1,163)	(1,884)		(1,506)	(2,138)	(13,013)	(22,042)	(7,622)	(13,500)
Tax expenses	[12.c]	(625)	(4,705)		(301)	(1,931)	(7,163)	(19,269)	(5,570)	(10,887)
Provision for brokerage to returned	[13]	--	--		--	--	--	--	(9,824)	(19,648)
Other	[13]	121	3,100		19	2,478	(8,280)	(7,097)	(5,433)	(10,696)
Income Before Financial Revenue and		1,882,004	3,712,651		1,499,345	2,705,406	2,115,692	4,218,754	1,714,251	3,164,946
Expenses
Financial Result	[14]	10,402	12,714		4,196	7,838	150,304	246,502	117,775	175,917
Financial revenue		11,438	93,261		4,968	35,195	151,435	327,230	118,605	204,555
Financial expenses		(1,036)	(80,547)		(772)	(27,357)	(1,131)	(80,728)	(830)	(28,638)
Income Before Taxes and Equities		1,892,406	3,725,365		1,503,541	2,713,244	2,265,996	4,465,256	1,832,026	3,340,863
Income Tax and Social Contribution	[12.a]	(233)	(233)		186	--	(373,823)	(740,124)	(328,299)	(627,619)
Net Income		1,892,173	3,725,132		1,503,727	2,713,244	1,892,173	3,725,132	1,503,727	2,713,244

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	2,000,000,000	2,000,000,000	2,000,000,000	2,000,000,000
[25.c]	1,996,726,731	1,996,742,391	1,996,714,480	1,996,700,283	1,996,726,731	1,996,742,391	1,996,714,480	1,996,700,283
[25.c]	0.95	1.87	0.75	1.36	0.95	1.87	0.75	1.36

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 Half 2023

BB Seguridade Participações S.A.

STATEMENT OF COMPREHENSIVE INCOME

											R$ thousand
			Parent					Consolidated
	Note	2nd Quarter 2023	1st Half 2023	2nd Quarter 2022	1st Half 2022			2nd Quarter 2023	1st Half 2023	2nd Quarter 2022	1st Half 2022
	Restated balances	Restated balances			Restated balances	Restated balances
Net Income		1,892,173	3,725,132	1,503,727	2,713,244	1,892,173	3,725,132	1,503,727	2,713,244
Share of comprehensive income	[09	213,595	391,265	101,133	82,577	213,595	391,265	101,133	82,577
Gains/(losses) on financial assets available for		78,639	125,594	(22,520)	(48,906)	78,639	125,594	(22,520)	(48,906)
sale
Other comprehensive results
Effects CPC 50		277,852	526,925	191,075	186,535	277,852	526,925	191,075	186,535
other		(456)	(377)	--	--	(456)	(377)	--	--
Tax effect		(142,440)	(260,877)	(67,422)	(55,052)	(142,440)	(260,877)	(67,422)	(55,052)
Total Comprehensive Income		2,105,768	4,116,397	1,604,860	2,795,821	2,105,768	4,116,397	1,604,860	2,795,821

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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