untitled design

BB Seguridade has 11% lower adjusted net income in the 3rd quarter

A BB Security reported on Monday (8) adjusted net income of BRL 975.8 million in the third quarter, down 11% compared to the same period in 2020, affected by negative markings to market by Brasilprev and by the increase of 5 percentage points in the rate of Social Contribution on Net Income (CSLL) for insurance companies.

According to the insurance and pensions arm of Banco do Brasil, the quarterly result was negatively impacted by a “temporal mismatch” in the updating of assets and liabilities linked to the IGP-M at Brasilprev.

“On a normalized basis, segregating this effect, which is null for the result over time, the adjusted net income would grow 7.1%”, said the BB Security, adding that without the increase in CSLL, adjusted net income would have increased 10.2% year-on-year.

The consolidated financial result of BB Security for the period, it dropped 85.9% year-on-year, given the negative mark-to-market generated by the opening of the nominal and real interest rate term structure, the company said.

A BB Security it also reported a negative impact of R$ 16.2 million from Brasilseg, affected by a higher accident rate in products with rural and death coverage and by the increase in CSLL.

“On the other hand, the distribution segment, notably the BB Brokerage, maintained its growth dynamics (R$ +32.6 million), with higher brokerage revenues, supported by the good commercial performance in insurance and pension plans”, stated the company in a statement.

A BB Security it also revealed that it had revised its “guidance” for Brasilprev’s pension reserves (PGBL and VGBL) in 2021, projecting an increase of 0% to 2% for the full year. Before, the company saw a growth of 4% to 7%.

“Despite the record volume of contributions until the month of September, redemptions (at Brasilprev) were higher than expected,” said the BB Security, mentioning among the main reasons the death of holders as a result of Covid-19.

Reference: CNN Brasil

You may also like

Get the latest

Stay Informed: Get the Latest Updates and Insights

 

Most popular