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Consolidated Financial Statements - 1st Quarter 2023
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BB Seguridade Participações S.A.
INDEX | |||
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$6.4 million): boosted by the expansion of financial results, led by the increase of average volumes and, to a lesser extent, the higher financial margin.
The negative balance of holding's other revenues and expenses grew by 75.7%, mostly driven by higher tax expenses on financial revenues and, to a lesser extent, the increase of personnel expenses, due to the headcount expansion and the adjustment of wages after the collective bargaining agreement signed in September 2022.
The financial results fell 36.5%, justified by the retraction of the average balance of financial investments, partially offset by the higher Selic rate.
For more information about BB Seguridade's performance, including the managerial analysis of its investees, please refer to the MD&A, available at www.bbseguridaderi.com.br/en, section Financial Information, option Results Center.
RELATIONSHIP WITH INDEPENDENT AUDITORS
In the first quarter of 2023, BB Seguridade hired independent audit services provided by Deloitte Touche Tohmatsu Auditores Independentes ("Deloitte"), through a contract maintained by its controlling shareholder Banco do Brasil S.A.
When hiring services not related to the external audit, BB Seguridade adopts procedures based on the applicable law and on international accepted principles that preserve the auditor's independence. Such principles consist of: (i) the auditor should not audit its own work; (ii) the auditor should not perform managerial activities at his client management structure; and (iii) the auditor should not promote the interests of its client.
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Consolidated Financial Statements - 1st Quarter 2023
#interna
BB Seguridade Participações S.A.
STATEMENT OF INCOME
R$ 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 | ||||||||||
#interna | ||||||||||
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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BB Seguridade Participações SA published this content on 15 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 May 2023 10:17:28 UTC.