Q2 2026 BB Seguridade Participacoes SA Earnings Call

August 4, 2026

Speaker #2: Olá, bom dia. Sejam bem-vindos à nossa reunião virtual para apresentação.

Felipe Peres: [Foreign language]

Speaker #1: Good morning. Welcome to our virtual meeting to present the results of the second quarter of 2026. This event is being recorded and simultaneously translated into English to listen to the audio in English.

Felipe Peres: Good morning. Welcome to our virtual meeting to present the results of the Q2 of 2026. This event is being recorded and simultaneously translated into English. To listen to the audio in English, press the interpretation button at the lower right-hand side of the screen. The event will be divided into two parts. In the first part, our CEO, Delano Valentim, and our CFO, Rafael Sperendio, will present the main deliveries of the quarter. The presentation and the slide deck in Portuguese or in English can be downloaded from our investor relations website at the address www.bbseguridade.ri.com.br. In the second part of the event, there will be a Q&A session when analysts and investors will be able to request any questions they may wish.

Speaker #1: Press the interpretation button at the lower right-hand side of the screen. The event will be divided into two parts. In the first part, our CEO, Delano Valentin, and our CFO, Rafael Sperendio, will present the main deliveries of the quarter.

Speaker #1: The presentation and the slide deck in Portuguese or in English can be downloaded from our investor relations website at the address www.bbseguridadeau.com.br. In the second part of the event, there will be a Q&A session when analysts and investors will be able to request any questions they may wish.

Speaker #1: I will come back after the presentations to give you instructions if you want to ask a question. Now, I would like to give the floor to Delano, who is going to present the main highlights of the quarter.

Delano Valentim de Andrade: I will come back after the presentations to give you instructions if you want to ask a question. Now I would like to give the floor to Delano, who is going to present the main highlights of the quarter. Delano, floor is yours now. Thank you, Felipe. Good morning, everyone. Good morning all of you with us here today. It is a great pleasure to be here to show you the results of the Q1 of 2026. I would like to start by thanking everybody for joining us for this conference call. I would also like to thank our investors and especially our customers for the continued trust in our company. I would also like to extend special thanks to our employees and Banco do Brasil salesforce, who continue to play a key role in the execution of our strategy.

Felipe Peres: I will come back after the presentations to give you instructions if you want to ask a question. Now I would like to give the floor to Delano, who is going to present the main highlights of the quarter. Delano, floor is yours now.

Speaker #1: Delano, floor is yours now.

Speaker #3: Obrigado, Felipe.

Speaker #1: Thank you, Felipe.

Delano Valentim: Thank you, Felipe. Good morning, everyone. Good morning all of you with us here today. It is a great pleasure to be here to show you the results of the Q1 of 2026. I would like to start by thanking everybody for joining us for this conference call. I would also like to thank our investors and especially our customers for the continued trust in our company. I would also like to extend special thanks to our employees and Banco do Brasil salesforce, who continue to play a key role in the execution of our strategy.

Speaker #3: Bom dia.

Speaker #1: Good morning, everyone. Good morning, all of you, with us here today. It's a great pleasure to be here to show you the results of the first quarter of 2026.

Speaker #3: Quero começar.

Speaker #1: I would like to start by thanking everybody for joining us for this conference call. I would also like to thank our investors and especially our customers for the continued trust in our company.

Speaker #1: I would also like to extend special thanks to our employees at Banco do Brasil Salesforce, who continue to play a key role in the execution of our strategy and I would like to thank them for their contribution to the performance we'll present here today.

Delano Valentim de Andrade: I would like to thank them for their contribution to the performance we present here today. Along the H1 of 2026, we continued to operate in a very challenging environment. Despite that, we have kept discipline in the execution of our strategy, seeking more integrated management with all companies of the conglomerate to be more efficient both in the way we serve our customers and in the management of our expenses. I would like to start the presentation by drawing your attention to our recurring net managerial income of BRL 4.4 billion, an increase of 3.2% compared to the H1 of 2025.

Delano Valentim: I would like to thank them for their contribution to the performance we present here today. Along the H1 of 2026, we continued to operate in a very challenging environment. Despite that, we have kept discipline in the execution of our strategy, seeking more integrated management with all companies of the conglomerate to be more efficient both in the way we serve our customers and in the management of our expenses. I would like to start the presentation by drawing your attention to our recurring net managerial income of BRL 4.4 billion, an increase of 3.2% compared to the H1 of 2025.

Speaker #1: Along the first six months of 2026, we continue to operate in a very challenging environment. Despite that, we have kept discipline in the execution of our strategy seeking more integrated management with all companies of the conglomerate to be more efficient both in the way we serve our customers and in the management of our expenses.

Speaker #1: I would like to start the presentation by drawing your attention to our recurring net managerial income of 4.4 billion BRL and increase of 3.2% compared to the first half of 2025.

Delano Valentim de Andrade: The net operating income after taxes reached BRL 3.5 billion, an increase of 0.3% compared to the same period as the previous year, supported especially by the drop in the loss ratio in insurance operations, which remains at the lowest historical level, and the growth in revenue from management fees accompanied by improved operational efficiency with Brasilprev. In addition, the net investment income after taxes has reached almost BRL 1 billion, BRL 909.1 million, an increase of more than 16% compared to the previous year, reflecting the increase in the profitability of our financial institutes in an environment with still high interest rates. It is also worth mentioning the payout of BRL 3.9 billion in dividends, a payout of almost 88%, which represents almost BRL 2 per share, thereby reinforcing our commitment to generating and distributing value to our shareholders.

Delano Valentim: The net operating income after taxes reached BRL 3.5 billion, an increase of 0.3% compared to the same period as the previous year, supported especially by the drop in the loss ratio in insurance operations, which remains at the lowest historical level, and the growth in revenue from management fees accompanied by improved operational efficiency with Brasilprev. In addition, the net investment income after taxes has reached almost BRL 1 billion, BRL 909.1 million, an increase of more than 16% compared to the previous year, reflecting the increase in the profitability of our financial institutes in an environment with still high interest rates. It is also worth mentioning the payout of BRL 3.9 billion in dividends, a payout of almost 88%, which represents almost BRL 2 per share, thereby reinforcing our commitment to generating and distributing value to our shareholders.

Speaker #1: The net operating income after taxes reached 3.5 billion BRL and increase of 0.3 compared to the same period as the previous years, supported especially by the drop in the loss ratio in insurance operations, which remains at the lowest historical level and the growth in revenue from management fees accompanied by improved operational efficiency.

Speaker #1: With Brazil Prev, in addition, the net investment income after taxes has reached almost 1 billion BRL, 909.1 million BRL, and increase of more than 16% compared to the previous year, reflecting the increase in the profitability of our financial institutions in an environment with still high interest rates.

Speaker #1: It's also worth mentioning the payout of 3.9 billion BRL in dividends payout of almost 88%, which represents almost 2 BRL per share. Thereby reinforcing our commitment to generating and distributing value to our shareholders.

Delano Valentim de Andrade: Going slightly below the bottom line of our P&L, I would like to highlight some operational indicators. In insurance, retained premiums totaled BRL 7 billion in the H1, remaining practically stable as compared to the year before. In this segment, I would like to draw your attention to the recovery we saw in Q2 2026 for credit life written premiums, a product where we have demonstrated the greatest capacity to develop new solutions to help offset the impact of the current scenario with high interest rates. In addition to the expansion of corporate credit portfolio of persons eligible to insurance, which I have been highlighting since last year, in the H1 2026, added almost BRL 400 million in premiums written.

Delano Valentim: Going slightly below the bottom line of our P&L, I would like to highlight some operational indicators. In insurance, retained premiums totaled BRL 7 billion in the H1, remaining practically stable as compared to the year before. In this segment, I would like to draw your attention to the recovery we saw in Q2 2026 for credit life written premiums, a product where we have demonstrated the greatest capacity to develop new solutions to help offset the impact of the current scenario with high interest rates. In addition to the expansion of corporate credit portfolio of persons eligible to insurance, which I have been highlighting since last year, in the H1 2026, added almost BRL 400 million in premiums written.

Speaker #1: Going slightly beyond the bottom line of our P&L, I would like to highlight some operational indicators. In insurance, we thank premiums total 7 billion BRL in the first half of the year, remaining practically stable as compared to the year before.

Speaker #1: In this segment, I would like to draw your attention to the recovery we saw in the second quarter of 2026 for credit life written premiums. After that, we have demonstrated the greatest capacity to develop new solutions to help offset the impacts of the current scenario with high interest rates.

Speaker #1: In addition to the expansion of corporate credit portfolio, of persons eligible to insurance, which I have been highlighting since last year and in the first half of 2026, added almost 400 million BRL in premiums written I would like to highlight the implementation of a partial credit life insurance, which allows the parameterization of policy terms by the relationship managers a way to reduce the effective cost of insurance.

Delano Valentim de Andrade: I would like to highlight the implementation of a partial credit life insurance, which allows a parametrization of policy terms by the relationship manager as a way to reduce the effective cost of insurance. With this, facilitate the placement of the product in payroll loans. In pensions, we have reached BRL 496.5 million in reserves, an increase of 10.6% over the same period in the year before. In the period, we have a +BRL 2.8 billion net inflow. This is a very relevant number considering the market context and the intense competitiveness that we have seen for the pursuit of investors. Finally, in premium bonds, collection reached BRL 3.4 billion in the semester. In addition, we paid out almost BRL 42 million in lottery prizes, a growth of 36% compared to the H1 of the previous year, reinforcing the engagement of customers with our products.

Delano Valentim: I would like to highlight the implementation of a partial credit life insurance, which allows a parametrization of policy terms by the relationship manager as a way to reduce the effective cost of insurance. With this, facilitate the placement of the product in payroll loans. In pensions, we have reached BRL 496.5 million in reserves, an increase of 10.6% over the same period in the year before. In the period, we have a +BRL 2.8 billion net inflow. This is a very relevant number considering the market context and the intense competitiveness that we have seen for the pursuit of investors.

Speaker #1: And with this, place facilitate the placement of the product in payroll loans. In pensions, we have reached 496.5 billion BRL in reserves. An increase of 10.6% over the same period in the year before.

Speaker #1: In a period we have net positive net inflow of 2.8 billion BRL. This is a very relevant number considering the market context and the intense competitiveness that we have seen for the pursuit of investors finally in premium bonds collection reached 3.4 billion BRL in the semester.

Delano Valentim: Finally, in premium bonds, collection reached BRL 3.4 billion in the semester. In addition, we paid out almost BRL 42 million in lottery prizes, a growth of 36% compared to the H1 of the previous year, reinforcing the engagement of customers with our products. We think that these results once again demonstrate the solidity of BB Seguridade, its execution capacity, and the resilience of our business model despite the still challenging environment. With that, I end my presentation, I would like to give the floor to Rafael, who's going to give you details of each one of our operations. Thank you so much.

Speaker #1: In addition, we paid out almost 42 million BRL in lottery prizes. A growth of 36% compared to the first half of the previous year, reinforcing customer the engagement of customers with our products.

Speaker #1: We think that these results, once again, demonstrate the solidity of BB Seguridade. Its execution capacity and the resilience of our business model despite the still challenging environment.

Delano Valentim de Andrade: We think that these results once again demonstrate the solidity of BB Seguridade, its execution capacity, and the resilience of our business model despite the still challenging environment. With that, I end my presentation, I would like to give the floor to Rafael, who's going to give you details of each one of our operations. Thank you so much. Thank you, Delano. Good morning, everyone. Now looking at the details of our results. Q2 close to BRL 2.2 billion of income, a drop of 3%. Year on year, this drop is a result of the drop in investment income. Two factors. The most important is -BRL 12 million mark-to-market after taxes in the Q2, as compared to Q2 last year, that was +BRL 34 million, and most of the -mark-to-market is resulting of the opening of the structure.

Speaker #1: With that, I end my presentation and I would like to give the floor to Rafael, who's going to give you details of each one of our operations.

Speaker #1: Thank you so much.

Speaker #4: Obrigado, Delano. Bom dia.

Rafael Sperendio: Thank you, Delano. Good morning, everyone. Now looking at the details of our results. Q2 close to BRL 2.2 billion of income, a drop of 3%. Year on year, this drop is a result of the drop in investment income. Two factors. The most important is -BRL 12 million mark-to-market after taxes in the Q2, as compared to Q2 last year, that was +BRL 34 million, and most of the -mark-to-market is resulting of the opening of the structure.

Speaker #1: Thank you, Delano. Good morning, everyone. Now, looking at the details of our results: the second quarter closed with R$2.2 billion of income, a drop of 3%.

Speaker #1: Year on year, this drop is a result of the drop in investment income, so two factors. The most important is the negative mark-to-market of $12 million after taxes in the second quarter.

Speaker #1: And as compared to Q2 last year, that was positive by $34 million, and most of the negative mark-to-market is a result of the opening of the structure.

Speaker #1: The other factor impacting the second quarter comparing year on year was the quite high intense high of the IGPM, which is lagging by one month, which is the rate that we used to update the liabilities of plans as defined by Brazil Prev.

Rafael Sperendio: The other factor impacting the Q2, comparing year on year, was the quite intense high of the IGP-M, which is lagging by one month, which is the rate that we use to update the liabilities of plans as defined by Brasilprev. In Q2 2026, the lag was 24% as compared to Q2 last year. With one month lag, there was a deflation of 0.6. This effect was not followed up by IPCA and had an effect in Brasilprev, and together with mark-to-market, explained the drop in net income year on year. Here on the right-hand side, there is a 3% growth in investment income and segregating the time mismatch, its net income is almost flat.

Speaker #1: So in Q2 26, so the lag was 24% as compared to second quarter last year with one month lag. There was a deflation of 0.6.

Speaker #1: So this effect was not followed up by IPCA and had an effect in Brazil Prev and together with marking to market explained the drop in net income year on year.

Speaker #1: Here on the right-hand side, there is a 3% growth in investment income and segregating the time mismatch so it's net income is almost flat.

Speaker #1: So most of the 3% growth when we look yearly numbers is a result of a smaller effect of the time mismatch, which was much worse last year in a defined benefit plans, there is a liability and IGPM is what accounts for most of this results as we see the mismatch.

Rafael Sperendio: Most of the 3% growth when we look at yearly numbers is a result of a smaller effect of the time mismatch, which was much worse last year. As I said, in a defined benefit plan, there is a liability, and IGP-M is what accounts for most of the results as we see the mismatch a long time, 16% in investment income, most of it resulting from the time mismatch, which is clearly when we break down the net income and its main component. The 3% growth year on year represents BRL 136 million, BRL 126 coming from a net investment income, and it is very clear here, BRL 125 resulting from the time mismatch and its impact in H1 of this year as compared to H1 of last year.

Speaker #1: A long time 16% in investment income, most of it resulting from the time mismatch which is clearly when we break down the net income and its main components.

Speaker #1: So the 3% growth year on year represent 136 million BRL, 126 coming from a net investment income and it's very clear here 125 resulting from the time mismatch and its impact in the first half of this year as compared to the first half of last year.

Speaker #1: And the benefit resulting from the hike in the Selic rate was booked this year because it was almost in full taken to mark-to-market, which was R$18 million negative after taxes last year.

Rafael Sperendio: The benefit resulting from the high in the Selic rate was booked this year because it was almost in full taken to mark-to-market, which was BRL -18 million after taxes, and last year it was BRL +23 million. These are the main effects of the financial results when we look at the combination of all companies of the group. In operational, we see a growth of BRL 10 million resulting from a BRL 54 million growth after taxes, as we can see increase in management fees resulting from volume as you are going to see. Another benefit that we saw this year was a reduction in the loss ratio, especially in agricultural sector. The improvement in these two variables were partially offset by the reduction in retained earned premiums very much because of the worst performance compared to last year in agricultural.

Speaker #1: It was $23 million positive. So, these are the main effects on the financial result when we look at the combination of all companies in the group.

Speaker #1: So in operational, we see a growth of 10 million BRL resulting from a 54 million growth after taxes as we can see increase in management fees resulting from volume as you are going to see and another benefit that we saw this year was the reduction in the loss ratio especially in agricultural sector.

Speaker #1: So, the improvement in these two variables was partially offset by the reduction in retained earned premiums, very much because of the worse performance compared to last year in agricultural, so in this quarter.

Rafael Sperendio: In this quarter, resulting from brokerage in the correction of the capitalization bonds and BRL -39 million here, most of the movement is a result of the drop in agricultural insurance premiums, and this variable captures the commissions in reinsurance premiums. 75% of the premiums that we issue in agricultural premiums in Brasilseg as in volume. There is a direct impact in commissions. Now, operation by operation. First, going to insurance operations, there is a drop of 5% year on year in Q2. It was 4% in year-to-date numbers. As I said, most of the drop arises from a performance that is worse than what we had last year in agricultural segment impacting rural and a share that accounts for most of our retained premiums. You can also see here in other comparisons, a drop of almost 5%.

Speaker #1: So resulting from brokerage in the correction of the premium bonds and 39 million negative here most of the movement is a result of the drop in agricultural insurance premiums and this variable captures the commissions in reinsurance premiums.

Speaker #1: So, 75% of the premiums that we issue in agricultural premiums and Brazil SEG, as in volume, there is a direct impact in commissions. Now, operation by operation, first going to insurance operations, there is a drop of 5% year over year in the second quarter.

Speaker #1: It was 4% in year to date. Numbers and as I said, most of the drop arises from a performance that is worse than what we had last year in agricultural segment impacting rural and the share that accounts for most of our written premiums and you can also see here in other comparisons a drop of almost 5%.

Speaker #1: The highlight here in the quarter both in the quarter and year to date numbers is the home insurance growing on both bases and the other highlight here is our performance in the credit life closing the semester almost flat despite the difficulties that we've been facing in terms of credit environment.

Rafael Sperendio: Highlight here in the quarter, both in the quarter and year-to-date numbers, is the home insurance growing on both bases. The other highlight here is our performance in the credit life, closing this semester almost flat despite the difficulties that we have been facing in terms of credit environment. In terms of retained premiums, here we isolate this effect of the performance in agricultural insurance that is granted to reinsurance, and we have 5% retention and retained premiums is almost flat Q2 considering year on year, both the quarter and H1. Performance ratios, we can see an increase in the combined ratio resulting especially from commission ratios, which is a positive point because of the mix and more concentration on products that have higher commission rates.

Speaker #1: In terms of retained premiums, so here we isolate this effect of the performance in agricultural insurance that is granted to reinsurance and we have 5% retention and retained premiums is almost flat second quarter considering year on year and the first half both the quarter and the first half.

Speaker #1: Performance ratios we can see an increase in the combined ratio resulting especially from commission ratios which is a positive point because of the mix and more concentration on products that have higher commission rates and the other factor impacting as I mentioned before.

Rafael Sperendio: The other factor impacting, as I mentioned before, is the smaller amount of revenue from commissions from reinsurance, which work to reduce this rate. They reduce the acquisition cost, and we are always operating considering income. This rate also goes up because of that. Loss ratio was increase because of persons segment, and there is better operational efficiency translated into G&A ratio. Now in year-to-date numbers, very similar dynamic considering especially the loss ratio in the segment of persons. This is more diluted and there is better loss ratio considering the rural insurance. Commissions, same explanation, such as in Q2 year-on-year, there is better operational efficiency and a reduction of SG&A. Financial result dropped quarter on quarter and also considering H1 and expenses increase because of Selic and IPCA. Here there is the update.

Speaker #1: It's a smaller amount of revenue from commissions from reinsurance, which work to reduce this rate. So they reduce the acquisition cost, and we are always operating considering that. In income, this rate also goes up because of that.

Speaker #1: Loss ratio was slight increase because of persons segment and there is better operational efficiency and translated into GNA ratio. Now in year to date numbers very similar dynamic considering especially the loss ratio in a segment of persons this is more diluted and there is better loss ratio considering the agricultural insurance.

Speaker #1: Commissions same explanation such as in the second quarter year on year there is better operational efficiency and a reduction of SG&A. So financial result dropped year on year quarter on quarter and also the considering the first half of the year and expenses increase because of select and IPCA and here there is the update.

Speaker #1: So, there has been an increase in these actual numbers, and that's why financial expenses went up and offset financial expenses or investment expenses. And then, the net income is up 2% when comparing year-on-year for the two quarters, and down 1% when comparing the first half of the year.

Rafael Sperendio: There has been an increase in these actual numbers and that is why financial expenses went up and offset financial expenses or investment expenses. The net income is 2% comparing year-on-year, the two quarters and 1% down comparing H1. It is down year-on-year in the combined ratio and a drop investment income, which was partially offset but not in full. That is why there is a year-on-year drop by 2% and 1% considering H1. Considering pension plans with very robust performance both in the quarter and in H1, 4% year-on-year and 7% growth in the year-to-date numbers getting to BRL 24 million was significant drop in redemption rates on both bases. It was 11% last year both in the quarter and in H1.

Speaker #1: So it's down year on year and the combined ratio and a drop investment income which was partially offset but not in full and that's why there is a year on year drop by 2% and 1% considering the first half.

Speaker #1: Now considering pension plans with variable robust performance both in the quarter and in the first half of the year 4% year on year and 7% growth in the year to date numbers getting to 25 million BRL was significant drop in redemption rates on both bases.

Speaker #1: So the it was 11% last year both in the quarter and in the first half of the year last year is a whole and this rate dropped by 3 percentage points quite significant drop in redemption rates very very good performance in terms of that inflows closing the half with 3 billion BRL.

Rafael Sperendio: Last year as a whole, this rate dropped by 3 percentage points, quite significant drop in redemption rates. Very good performance in terms of net inflows closing the half with BRL 3 billion. Reserves grew 11% in 12 months, getting to BRL 496 billion in June 2026. Management fee, you can see here, a less accelerated growth looking at average fees. The risk aversion still persists in the market, and most of the flow that we have been seeing here is concentrated in lower risk products and as a consequence, lower management fee. That is why there is a reduction on both comparison basis. In terms of operational efficiency, a considerable improvement, almost 3 points year-on-year, 2.4 if you consider year-to-date numbers. Most operations of the group except for our capitalization bonds.

Speaker #1: Reserves grew 11% in 12 months, reaching R$496 billion in June 2026. The management fee shows less accelerated growth when looking at average fees.

Speaker #1: So the risk aversion still persists in the market and most of the flow that we've been seeing here is concentrated on lower risk products and as a consequence lower management fee.

Speaker #1: That's why there is a reduction on both comparison basis. In terms of operational efficiency so considerable improvement almost 3 points year on year 2.4 if you consider year to date numbers.

Speaker #1: So most operations of the group except for our premium bonds so here the net investment income second quarter very much impacted but this very sharp high of the IGPM which was not followed by IPCA so investment income was down by 49.

Rafael Sperendio: Here the net investment income, Q2 very much impacted, but this very sharp high of the IGP-M, which was not followed by IPCA, investment income was down by 49%. If we look year-to-date numbers, 41% growth here precisely because of the effect that I mentioned in Q2 is diluted for the 6 months and most of the growth of 41% results from a better effect of this time mismatch, as I said before. Net income, despite better efficiency and the growth in revenue, it is taken by the -investment income. Net income drops 19% year-on-year, but it is not so sharp if we consider the first 6 months of the year. There is a 13% growth also favored by the 41% high in investment income.

Speaker #1: If we look at year-to-date numbers, there's 41% growth here, precisely because the effect that I mentioned in the second quarter is diluted over six months, and most of the growth is 41%.

Speaker #1: This results from a better effect of the time mismatch, as I said before. And then net income, despite better efficiency and growth in revenue, is impacted by the negative investment income. Net income drops 19% year-on-year, but it's not so sharp if we consider the first six months of the year.

Speaker #1: So there is a 13% growth also favored by the 41% high in investment income. Now in premium bonds we had a drop of 12% year on year 3% in year to date numbers despite that there's a 2% growth in the balance of reserves in premium bonds because of the level of redemption that is a lot slower than last year.

Rafael Sperendio: In premium bonds, we had a drop of 12% year-on-year, 3% in year-to-date numbers, despite that there's a 2% growth in the balance of reserves in premium bonds because of the level of redemption that is a lot slower than last year. In terms of lottery prizes paid, BRL 18 million paid out, 17% growth year-on-year, BRL 42 million paid in H1 so far, 36% growth. Net investment income on a high of 7% year-on-year because of the better financial margins of 20 basis points, in year-to-date numbers even a more intense growth, 39%, considering the investment margin. Last year we had the negative adjustment of hedge, which ended up causing a negative impact in H1 of last year considering the basis. That's why it's affected.

Speaker #1: In terms of lot three prices paid so 18 million paid out 17% growth year on year 42 million paid in the first half of the year so far 36% growth.

Speaker #1: Net investment income was up by 7% year on year, due to better financial margins of 20 basis points. In the year-to-date numbers, growth was even stronger at 39%, considering the investment margin. Last year, we had a negative hedge adjustment, which ended up causing a negative impact in the first half of last year considering the basis.

Speaker #1: So that's why it's affected that's why we had this very very sharp growth of 39%. If we look at the first six months of the year and investment income drove the net the growth in net income 1% year on year 40% in the first six months now BB Corretora or brokerage outlet so here a drop of 3% year on year and 1% down by 1% if we look at the first six months same reason explaining there is a reduction in the share of brokerage from premium bonds so in terms of net margin almost flat year on year up by 0.5 percentage points considering the first six months because of the average rate.

Rafael Sperendio: That's why we had this very sharp growth of 39% if we look at H1. Investment income drove the growth in net income, 1% year-on-year, 40% in H1. BB Corretora or brokerage outlet. Here, a drop of 3% year-on-year and down by 1%. If we look at H1, same reason explaining there is a reduction in the share of brokerage from premium bonds. In terms of net margin, almost flat year-on-year, up by 0.5 percentage points considering H1, because of the average rate. The stability financial margin. You can see here, if you look year-on-year, the drop in net income agrees with a drop in revenue.

Speaker #1: And then the stability in financial margin you can see here if you look year on year the drop in net income agrees with the drop in revenue but on the other hand the improvement in year to date numbers partially offsets the drop in revenue and net income is stable considering revenues at 0.1%.

Rafael Sperendio: On the other hand, the improvement in year-to-date numbers partially offsets the drop in revenue, and net income is stable considering revenues at 0.1%. Addressing the guidance for the year. In terms of actual numbers. In terms of reserve of pension plans, we ended at 11%, in the range from 8% to 11% in terms of written premiums. We are 0.5% below the lowest range in non-interest operating results. From -7% to -3%, we ended the year at -0.2%, thereby outside the expected range. From here until the end of the year, looking here at our guidance in terms of growth in reserve, the variation of non-interest operating results. They are more asymmetrical, tending towards the top here.

Speaker #1: Now addressing the guidance for the year so in terms of actual numbers in terms of reserves pension plans so we ended at 11% in the range from 8 to 11 in terms of written premiums so we are half percent below the lowest range and on interest operating results so from minus 7 to minus 3 we ended the year at minus 02% thereby outside the expected range.

Speaker #1: So from here until the end of the year looking here at our guidance in terms of growth and reserves and variation of non-interest operating results so they are more asymmetrical tending towards the top here.

Speaker #1: From written premiums the main driver here from now until the end of the year is going to be our performance in terms of crop insurance.

Rafael Sperendio: From written premiums, the main driver here, from now until the end of the year is going to be our performance in terms of crop insurance. It's absolutely feasible for us to deliver along the year. I end my presentation, I am going to join Delano and Felipe for the Q&A session. Thank you. We are now going to start our questions and answers session. If you want to post a question in writing, please click on the Q&A, which is at the bottom of your screen. We'll try to answer all the questions live during this conference call, if it's not possible for us to answer them during our video conference, we will answer them in writing after the end of the meeting. First, analysts can ask your questions live by audio.

Speaker #1: And it's absolutely feasible for us to deliver. Along the year. Now I and my presentation and now I am going to join Delano and Felipe for the Q&A session.

Speaker #1: Thank you.

Speaker #2: Iniciaremos agora a nossa sessão de perguntas.

Felipe Peres: We are now going to start our questions and answers session. If you want to post a question in writing, please click on the Q&A, which is at the bottom of your screen. We'll try to answer all the questions live during this conference call, if it's not possible for us to answer them during our video conference, we will answer them in writing after the end of the meeting. First, analysts can ask your questions live by audio.

Speaker #3: We are now going to start our questions and answer session. If you want to post a question in writing please click on the Q&A which is at the bottom of your screen.

Speaker #3: We'll try to answer all the questions live during this conference call and if it's not possible for us to answer them during our video conference we will answer them in writing after the end of the meeting.

Speaker #3: First Emily can ask her questions live by audio if you want to ask a question just click on the raise hand button. You can ask questions either in Portuguese and in English and we are always going to answer the questions in Portuguese.

[Analyst] (Citigroup): If you want to ask a question, just click on the raise hand button. You can ask questions either in Portuguese and in English, and we are always going to answer the questions in Portuguese. Now starting Q&A. We are going to have Arnon from Citibank. Arnon, you can open your microphone and ask your question. Good morning, gentlemen. Thank you very much for taking my question. First is related to the tax reform. This is something that we haven't been talking much. In 2027 there will be changes. How are you seeing the potential changes so far? How can this impact your bottom line in 2027? Do you see any risks associated to that? The second thing is related to credit life.

Felipe Peres: If you want to ask a question, just click on the raise hand button. You can ask questions either in Portuguese and in English, and we are always going to answer the questions in Portuguese. Now starting Q&A. We are going to have Arnon from Citibank. Arnon, you can open your microphone and ask your question.

Speaker #3: We will now start the Q&A. We have Anon from City Bank. Anon, you can open your microphone and ask your question. Good morning, gentlemen.

Arnon Shirazi: Good morning, gentlemen. Thank you very much for taking my question. First is related to the tax reform. This is something that we haven't been talking much. In 2027 there will be changes. How are you seeing the potential changes so far? How can this impact your bottom line in 2027? Do you see any risks associated to that? The second thing is related to credit life. I think April was a very weak month. May and June, especially June, considering your results, they were not good months. Do you think this is going to continue from now on?

Speaker #3: Thank you very much for taking my question. First is related to the tax reform. This is something that we haven't been talking much and in 2027 there will be changes how are you seeing the potential changes so far and how can this impact your bottom line in 2027.

Speaker #3: Do you see any risks associated with that? And then the second thing is related to credit life. I think April was a very weak month, but May and June—and especially June, considering your results—they were not good months.

Rafael Sperendio: I think April was a very weak month. May and June, especially June, considering your results, they were not good months. Do you think this is going to continue from now on? Well, Arnon, thank you very much for your question. Let's start from the tax reform. There is still a lot of uncertainty in the reinsurance environment. Overall, for the country as a whole it's not 100% clear. So far, we're not giving you any guidance on the impact. In pension and premium bonds, we are seeing more the transition, considering especially the new regime. In insurance operations, we still have the potential impact involving the way we manage risk and reinsurance operations, especially because of some changes in tax rules, which are not yet 100% clear.

Speaker #3: Do you think this is going to continue from now on? Well Anon thank you very much for your question. So let's start from the tax reform.

Rafael Sperendio: Well, Arnon, thank you very much for your question. Let's start from the tax reform. There is still a lot of uncertainty in the reinsurance environment. Overall, for the country as a whole it's not 100% clear. So far, we're not giving you any guidance on the impact. In pension and premium bonds, we are seeing more the transition, considering especially the new regime. In insurance operations, we still have the potential impact involving the way we manage risk and reinsurance operations, especially because of some changes in tax rules, which are not yet 100% clear.

Speaker #3: So there is still a lot of uncertainty in the reinsurance environment but overall for the country as a whole it's not 100% clear so so far we're not giving you any guidance on the impact and in pension and premium bonds we are seeing more than transition considering especially the new regime but in insurance operations we're still have the potential impact involving the way we manage risk and reinsurance operations especially because of some changes in tax rules which are not yet 100% clear so in insurance this is where we place the greatest emphasis in a transition to the new regime not just operational but also potentially considering the financial impact year on year in the way we designed it and in terms of seeking alternatives and maybe if these changes happen as we expect them.

Rafael Sperendio: In insurance, this is where we place the greatest emphasis in a transition to the new regime, not just operational, but also potentially considering the financial impact year on year in the way we designed it and in terms of seeking alternatives, and maybe if these changes happen as we expect them to happen. As to credit life, in fact, there has been a very sharp recovery in May and June. Here most of the recovery is due to two factors. One is external to BB Seguridade and Banco do Brasil, which was a change in a max time for payroll loans with more months. This by itself improved the credit origination, so it opens more room for the insurance products to be offered for the life of customers. This was an external factor that favored the performance.

Speaker #3: To happen. As to credit life, in fact, there has been a very sharp recovery in May and June, and here most of the recovery is due to two factors.

Speaker #3: One is the external to BB Seguridade at Banco do Brasil it was a change in a max times forepay loans that were more months and this by itself gave us improved the credit origination so it opens more room for the insurance products to be offered for the life of customers.

Speaker #3: So, this was an external factor that favored the performance days and an internal factor that is also contributing, as Delano mentioned. And partial credit life—now, credit life was parameters in terms of time and coverage, or coverage times, considering the more restrictive environment with interest rates at this level. And now for the distribution rate, there is an alternative with more flexible coverage times to make the product more accessible, so that we are more successful in selling the products.

Rafael Sperendio: There's an internal factor that is also contributing, as Delano mentioned, in partial credit life. It's now credit life with parameters in terms of time and coverage or coverage times, considering the more restrictive environment with interest rates at this level. Now for the distribution rate, there is an alternative, more flexible coverage times to make the product more accessible so that we are more successful in selling the products. These are the two main factors that explain the better credit life business. Okay.

Speaker #3: So these are the two main factors that explain the better credit life products. Okay. Our next question. By Antonio. So thank you so much for your time my first question is related to the last ratio so we can see that your operational result has been changing above the guidance which is related to some worsening in loss ratio from now on.

Felipe Peres: Our next question by Antonio Ruette.

Antonio Gregorin Ruette: Thank you so much for your time. My first question is related to the loss ratio. We can see that your operational result has been changing above the guidance, which is related to some worsening in loss ratio from now on. If we look at the loss ratio and in term life and credit life, the difference is really rural, which is considering low historical averages. Could you tell us what you're seeing as potential impacts of El Niño? Are you pricing it to wait for the loss ratio to go back to normal? If I may ask another question, slightly broader about El Niño. We are seeing in the guidelines and in practical effects of El Niño already showing themselves present. What are you seeing? Higher demand for insurance? Are you getting prepared with more reinsurance?

Antonio Ruette: Thank you so much for your time. My first question is related to the loss ratio. We can see that your operational result has been changing above the guidance, which is related to some worsening in loss ratio from now on. If we look at the loss ratio and in term life and credit life, the difference is really rural, which is considering low historical averages. Could you tell us what you're seeing as potential impacts of El Niño? Are you pricing it to wait for the loss ratio to go back to normal? If I may ask another question, slightly broader about El Niño. We are seeing in the guidelines and in practical effects of El Niño already showing themselves present. What are you seeing? Higher demand for insurance? Are you getting prepared with more reinsurance?

Speaker #3: If we look at the loss ratio and in term life and credit life the difference is really rural which is considered low historical averages.

Speaker #3: Could you tell us what you're seeing so potential impacts of El Niño are you pricing it to wait for the loss ratio to go back to normal.

Speaker #3: If I may ask another question, it's slightly broader—about El Niño. We are seeing in the guidelines and in the practical effects of El Niño already showing themselves present.

Speaker #3: Are you seeing higher demand for insurance, or are you getting prepared with more reinsurance? So, the second question: what are the prospects of having a slightly more severe El Niño this year?

Rafael Sperendio: The second question, what are the prospects of having a slightly more severe El Niño this year? Well, about the guidance of operational results. The distribution of likelihoods was more asymmetrical. That said, considering the H1 of the year, it's very much the result of an effect which is likely to become more difficult in the H2 of the year, because the loss ratio in the H1 2025 was higher than the loss ratio in the H1 2026, and a more normal loss ratio with a smaller carryover of earned premiums. That's why I mentioned the likelihood of us closing the year. It's not wise to review this range because this gradual convergence was already expected for the H2 of this year.

Speaker #3: Well about the guidance of operational results so the distribution of likelihood was more asymmetrical. So that said considering the first half of the year it's very much the result of an effect which is likely to become more difficult in the second half of the year is because the loss ratio in the first half of 25 was higher than the loss ratio in the first half of 26 and a more normal loss ratio with a smaller carryover of earned premiums and that's why I mentioned the likelihood of us closing the year so it's not wise to review this range because this gradual convergence was already expected for the second half of this year.

Speaker #3: But in any way we're not really ruling out that we might overcome but anyhow it's not going to be too soon. As to El Niño.

Rafael Sperendio: In any way, we're not really ruling out that we might overcome, but anyhow, it's not going to be too soon. As to El Niño, well, we could go on for hours about it, but trying to be objective and simplifying. How does El Niño impact the main aspects of your question? Well, as to risk management in terms of reinsurance, it didn't change. It remains the same. We defined 15%. Whenever we work in the management of our reinsurance panel, we look at the longer horizon and all the questions, considering non-proportional contracts, in terms of denials and everything. We look at the longer time range. In terms of demand, no significant changes either. Now, as you said, some time ago, we were discussing the likelihood of it happening. Now it looks like it's a given, it's taken for granted. It is going to happen.

Speaker #3: Well we could go on for hours. About it but trying to be objective and simplifying so how does El Niño impact the main aspects of your question.

Speaker #3: Well as to risk management in terms of reinsurance it didn't change it remains the same we defined 15% so whenever we work in a management of our reinsurance panel we look at the longer horizon and all the questions considering non-proportional contracts in terms of denials and everything.

Speaker #3: We look at the longer time range in terms of demand no significant changes either. Now as you said some time ago we were discussing the likelihood of it happening now it looks like it's a given it's taken for granted it's it is going to happen apparently it's already happening in some regions and the question now is related to the intensity of El Niño whether it's going to be more moderate or more severe and how this is going to affect considering the sensitivity to our business especially considering the center of the country so considering a draft in the north of the country in the center of or the south and how it impacts our country.

Rafael Sperendio: Apparently, it's already happening in some regions. The question now is related to the intensity of El Niño, whether it's going to be more moderate or more severe, and how this is going to affect considering the sensitivity to our business, especially considering the center of the country. Considering a drought in the north of the country, in the center, or the south, and how it impacts our country. This excess rainfall, it may impact loss ratio. I would focus on our portfolio of damages and how excessive rain might impact our portfolio, more focused in the center and south of Brazil. For the crop insurance, we should look at the longer horizon. For 2026, in terms of El Niño, we don't really see much of an impact this year. We see the risk is covered. The first crop has been harvested, corn.

Speaker #3: So this excess rainfall may impact the loss ratio. I would focus on our portfolio of damages and how excessive rain might impact our portfolio, with more focus in the center and south of Brazil.

Speaker #3: For the crop insurance we should look at the longer horizon for 2026 in terms of El Niño we don't really see much of an impact this year.

Rafael Sperendio: For 2026, in terms of El Niño, we don't really see much of an impact this year. We see the risk is covered. The first crop has been harvested, corn. It's already almost fully harvested, so there might be some marginal effect on loss ratio, but really marginal for the summer crop. For 2026, the El Niño effect may be in damages portfolio, but exposure to risk in those portfolios.

Speaker #3: We see the risk risk cover the first crop has been harvested corn so it's already almost fully harvested so there might be some marginal effect on loss ratio but really marginal for the summer crop.

Rafael Sperendio: It's already almost fully harvested, so there might be some marginal effect on loss ratio, but really marginal for the summer crop. For 2026, the El Niño effect may be in damages portfolio, but exposure to risk in those portfolios. Considering how big Brasilseg is, this is very limited. It's not going to have an impact in our bottom line in 2026. Now, depending on the severity of the impact and how it may affect the replanting of the soy. We should look at the rainfall, especially during planting September, November this year. The amount of rainfall and too much rainfall may delay the planting of soybeans and may affect the crop next year. If planting soybean is delayed and then the harvesting of soybeans is further ahead, thereby compressing the planting and the interim crop. It's going to be later.

Speaker #3: So for 2026, the El Niño effect may be in damages portfolio, but exposure to risk in those portfolios, considering how big Brazil SEG is, this is very limited.

Rafael Sperendio: Considering how big Brasilseg is, this is very limited. It's not going to have an impact in our bottom line in 2026. Now, depending on the severity of the impact and how it may affect the replanting of the soy. We should look at the rainfall, especially during planting September, November this year. The amount of rainfall and too much rainfall may delay the planting of soybeans and may affect the crop next year. If planting soybean is delayed and then the harvesting of soybeans is further ahead, thereby compressing the planting and the interim crop. It's going to be later.

Speaker #3: It's not going to have an impact in our bottom line in 2026. Now depending on the severity of the impact and how it may affect the replanting of the soil so we should look at the rainfall especially during planting September November this year so so the amount of rainfall and too much rainfall may delay the planting of soybean and may affect the crop next year and then if planting soybean is delayed and then the harvesting of soybean is further ahead thereby compressing the planting and the interim crop so it's going to be later the off season crop with incidence of frost and they have potential impact in the loss ratio in the second and third quarters of 2027.

Rafael Sperendio: The off-season crop with incidents of frost, and may have potential impact in the loss ratio in the Q2 and Q3 of 2027. It's not certain. This year for 2026, a very limited effect, and for 2027 in the second crop. Potentially, we need to observe the level of rainfall between September and November this year. Thank you, Rafael. Could you explain in terms of damages for 2026? While damage lines in home insurance, is there reinsurance or is reinsurance focusing more on agricultural? We have coverage for excess damages. It's not in the way you are familiar in the agricultural, but we buy stop loss coverage. Thank you, Antônio. Our next question comes from Kyle from UBS. Kyle, you may open your microphone and ask your question. Good morning, everyone. Good morning, Delano, Rafael, Philip. Thank you for taking my question.

Speaker #3: It's not certain. So this year for 2026 a very limited effect and for 2027 in the second crop. So potentially and we need to observe the level of rainfall between September and November this year.

Speaker #3: Thank you, Rafael. Could you explain, in terms of damages for 2026, while damage lines in home insurance—is there reinsurance, or is reinsurance focusing more on agricultural? We have coverage for excess damages. It's not in the way you are familiar with in agricultural, but we buy stop-loss coverage. Thank you. Antonio, our next question comes from Caio from UBS. Caio, you may open your microphone and ask your question.

Antonio Ruette: Thank you, Rafael. Could you explain in terms of damages for 2026? While damage lines in home insurance, is there reinsurance or is reinsurance focusing more on agricultural?

Rafael Sperendio: We have coverage for excess damages. It's not in the way you are familiar in the agricultural, but we buy stop loss coverage.

Felipe Peres: Thank you, Antônio. Our next question comes from Kyle from UBS. Kyle, you may open your microphone and ask your question.

Kaio da Prato: Good morning, everyone. Good morning, Delano, Rafael, Philip. Thank you for taking my question. First question regarding rural insurance, can you tell us more about premiums? We have a better performance with a line with 10% year-on-year in terms of growth. What are the drivers of this specific line and the other rural lines? The second one is related to brokerage crops with a weaker premium in recent. There was a contraction of revenues in broker, almost 3% year-on-year. My question is, how much you have deferred thinking of this pace of premiums, what should we expect for next year? What could be the drivers for us to see it growing again? Thank you.

Speaker #3: Good morning, everyone. Good morning, Delano, Rafael, Philip. Thank you for taking my question. So, first question regarding rural insurance—can you tell us more about premiums?

[Analyst] (Bank of America Securities): First question regarding rural insurance, can you tell us more about premiums? We have a better performance with a line with 10% year-on-year in terms of growth. What are the drivers of this specific line and the other rural lines? The second one is related to brokerage crops with a weaker premium in recent. There was a contraction of revenues in broker, almost 3% year-on-year. My question is, how much you have deferred thinking of this pace of premiums, what should we expect for next year? What could be the drivers for us to see it growing again? Thank you. Thank you very much for your question, Caio. Caio, since you got back to the theme of rural insurance, I forgot to mention in Antônio in terms of impact in our bottom line.

Speaker #3: We have a better performance with a life with 10% year on year in terms of growth. So what are the drivers of this specific line and others and the other rural lines and the second one is related to brokerage crops with a weaker premium in recent there was a contraction of revenues in broker almost 3% year on year.

Speaker #3: My question is: How much have you deferred, thinking of this pace of premiums? What should we expect for next year, and what could be the drivers for us to see it growing again?

Speaker #3: Thank you. Thank you very much for your question, Caio. Since you got back to the theme of rural insurance—and I forgot to mention this to Antonio in terms of impact on our bottom line—because of the reduction in the portfolio, the impact on the crop loss ratio is very small.

Rafael Sperendio: Thank you very much for your question, Caio. Caio, since you got back to the theme of rural insurance, I forgot to mention in Antônio in terms of impact in our bottom line. Because of reduction in the portfolio, the impact in the crop loss ratio is very small. Today, considering the share of the portfolio as a whole, which is less than 2% of retained premiums, if our loss ratio doubles, it has a 1% impact.

Rafael Sperendio: Because of reduction in the portfolio, the impact in the crop loss ratio is very small. Today, considering the share of the portfolio as a whole, which is less than 2% of retained premiums, if our loss ratio doubles, it has a 1% impact. Even in agriculture, where it would be more impactful, it is still very much limited for the numbers as a whole. Now, your question about written premiums. To date, our main difficulties in rural segment is very much related to crop insurance, especially for soybean and corn crops. How does it reflect on the insurance company? As we expand the portfolio of products, crop insurance today that is suffering the most is very much limited to the modalities of costing, especially in grains that is suffering the most, and that is why we see this drop year-on-year.

Speaker #3: Today, considering the share of the portfolio as a whole, which is less than 2% of retained premiums, if our loss ratio doubles, it has a 1% impact. So, even in agriculture, where it would be more impactful, it's still very much limited for the numbers as a whole.

Rafael Sperendio: Even in agriculture, where it would be more impactful, it is still very much limited for the numbers as a whole. Now, your question about written premiums. To date, our main difficulties in rural segment is very much related to crop insurance, especially for soybean and corn crops. How does it reflect on the insurance company? As we expand the portfolio of products, crop insurance today that is suffering the most is very much limited to the modalities of costing, especially in grains that is suffering the most, and that is why we see this drop year-on-year.

Speaker #3: Now, your question about written premiums to date—our main difficulties in the rural segment are very much related to crop insurance, especially for soybean and corn crops. How does this reflect on the insurance company as we expand the portfolio of products? Crop insurance today, which is suffering the most, is very much limited to the modalities of costing, especially in grains, which are suffering the most. That’s why we see this drop year-on-year.

Rafael Sperendio: When we expand to lien and life, there are credit lines to cross-sell the products. For Rural Lien Insurance, we see the costing investment lines and in life. We see cost. Also in costing, we can go in renegotiated. In terms of crop renegotiation, the cost of rural insurance, it's taxed. If they had insurance or they harvested and they sold the crop. In renegotiated, the only risk that we can somehow cover, if Farmer's Life Insurance risk and even for renegotiated, we have farmers credit life insurance. That's why it's better than the other two lines despite the higher interest rates. Now, I would say that in rural insurance, we are not really certain in terms of H2 considering.

Speaker #3: When we expand to lean and life so that our credit lines to cross sell the product for rural lean insurance we see the costing investment lines and in life so we see costs so also in costing we can go in renegotiated in terms of crop renegotiation the cost of agricultural insurance it's that's it.

Speaker #3: So if they had insurance or the harvested and they sold the crop so in renegotiated the only risk that we can somehow cover if farmers life insurance risk and needing for renegotiated we have farmers credit life insurance that's why it's better than the other two lines despite the higher interest rates.

Speaker #3: Now I would say that in rural insurance we are not really certain in terms of the second half of the year considering and but I would say that most of the growth that is easier to be captured it was captured in the first half of the year so we can estimate that we can keep the same pace that we have for farmers life insurance.

Rafael Sperendio: I would say that most of the growth that is easier to be captured, it was captured in H1. We can estimate that we can keep the same pace that we have for Farmer's Life Insurance. Now, there is a combination of events and the way the higher interest rates between 14% and 25% and how it affects our business. There is a combination between insurance products and accumulation products. Most of the insurance companies are associated to credit. This environment favors accumulation products, which are pensions and capitalization bonds, and this favors or rather makes it more difficult to sell credit or products related to credit, like credit life and other kinds of insurance. As you see the faster pace of growth, we need to count on a slowdown in interest rates. I'm not talking about spot.

Speaker #3: Now there is a combination of events and the way the higher interest rates between 1425 and how it affects our business. There is a combinated between insurance products and accumulation products.

Speaker #3: Most of the insurance companies are associated with credits. So this environment favors accumulation products, which are pensions and premium bonds, and this favors or rather makes it more difficult to sell credit or products related to credit, like credit life and other kinds of insurance.

Speaker #3: So as you see the faster pace of growth we need to count on a slow down in interest rates I'm not talking about spot so interest rates to have a slightly more breadth for the lines related to credit so for now and for the time being considering all the geopolitical issues that is the environment is very volatile and we also are going to have elections in Brazil in a second half of the year so it's very difficult for us to make any predictions in terms of timing and so we need to wait and see and we hope that geopolitical issues lose strength in a second half of the year and once we define the elections how this is going to impact the curve so that we are slightly more at ease in terms of our lines that depend on credit origination.

Rafael Sperendio: Interest rates to have a slightly more breadth for the lines related to credit. For now and for the time being, considering all the geopolitical issues, that is, the environment is very volatile. We also are going to have elections in Brazil in H2. It's very difficult for us to make any predictions in terms of timing, we need to wait and see. We hope that geopolitical issues lose strength in H2. Once we define the elections, how this is going to impact the curve so that we are slightly more at ease in terms of our lines that depend on credit origination.

Felipe Peres: Thank you, Caio. Now Daniel Vass from Safra is the next one to ask a question. Daniel, good morning. You may open your microphone and ask your question.

Speaker #3: Thank you, Caio. So now Daniel Vass from Safra is the next one to ask a question. Daniel, good morning. You may open your microphone and ask your question.

Speaker #3: Good morning Philip. Thank you very much for taking my question. Good morning Delano and Sperendio. I would like to focus on rural insurance and I think some of my colleagues have partially asked us questions.

Daniel Vass: Good morning, Felipe. Thank you very much for taking my question. Good morning, Delano and Sperendio. I would like to focus on rural insurance. I think some of my colleagues have partially asked this question. I was looking at your subscription because today two-thirds come from rural. Looking in previous years, that was 50%. Most of the underwriting is related to the loss ratio. There is an effect of the mix. There is more Farmer's Life, and Lien. There's a very high level in the segment. Looking crop insurance, 35% and 40%, today it's 20%, and Lien is 16%, and Farmer's Life is slightly lagging behind. Thinking of the sustainability. I would like you to hear the likelihood of these three lines, whether it's below expected and whether it's going to become normal for any of those lines?

Daniel Vaz: Good morning, Felipe. Thank you very much for taking my question. Good morning, Delano and Sperendio. I would like to focus on rural insurance. I think some of my colleagues have partially asked this question. I was looking at your subscription because today two-thirds come from rural. Looking in previous years, that was 50%. Most of the underwriting is related to the loss ratio. There is an effect of the mix. There is more Farmer's Life, and Lien. There's a very high level in the segment. Looking crop insurance, 35% and 40%, today it's 20%, and Lien is 16%, and Farmer's Life is slightly lagging behind. Thinking of the sustainability. I would like you to hear the likelihood of these three lines, whether it's below expected and whether it's going to become normal for any of those lines?

Speaker #3: I was looking at your subscription results today two thirds come from rural. Looking previous years that was 50% and most of the underwriting is related to the loss ratio.

Speaker #3: There isn't an effect of the mix. It varies more: farmers' life and lean. So there's a very high level in a segment—looking at crop insurance, it's 35–40%; today, it's 20, and lean is 16. And farmers' life is slightly lagging behind, thinking of the sustainability. So I would like you to hear the likelihood of these three lines—whether it's below expected, and whether it's going to become normal for any of those lines.

Speaker #3: We tried to model that, and analysts have been getting it wrong for a while. Your loss ratio is below historical averages. So, is it going to go back to normal, or is this a new normal?

Rafael Sperendio: We try to model that. Analysts have been getting it long for better. Your loss ratio is below historical averages. Is this going to go back to normal, or is this the new normal? Daniel, thank you for your question. I'm going to try and answer in parts because the reasons are different considering the three products. For Rural Lien and Farmer's Life, we are not expecting much change. For Farmer's Life, we had an atypical change when we had BRL 700 billion for Farmer's Life that died because of COVID. That's something that happened, and we hope this never happens again. We don't expect that kind in farmers credit life insurance. There may be some immaterial oscillation because of damages. Wind, hailstorms, that might affect storage and the warehouses. We are not really expecting that. That might be a one-off thing.

Speaker #3: Daniel, thank you for your question. I'm going to try and answer in parts, because the reasons are different when considering the three products. For Rural, Lean, and Farmers Life, we are not expecting much change.

Speaker #3: For farmers' life, we had an atypical change when we had 700 billion BRL for farmers' life that died because of COVID. And that's something that happens, and we hope this never happens again.

Speaker #3: We don't expect that kind in farmers' credit life insurance. So there may have been some immaterial oscillation because of damages—some wind, hailstorms—that might affect storage in the warehouses, and we are not really expecting that.

Speaker #3: That might be a one-off thing. Now, crop insurance, as I answered to Antonio, considering El Niño—so, insurance companies are more sensitive to La Niña than El Niño. This is where we have the greatest uncertainty.

Rafael Sperendio: That might be a one-off thing. Now, crop insurance, as I answered to Antonio, considering El Niño, insurance companies are more sensitive to La Niña than El Niño. This is where we have the greatest uncertainty. We are coming from three very favorable climate cycles. This is not usual considering current levels. We have historical lows in terms of loss ratio in crop insurance. The likelihood and the distribution is more asymmetrical. It's difficult to improve. The expectation is for it to increase when thinking about Antonio's question. Considering La Niña and its sensitivity, there is a substantial increase. Now, when we look at the longer timeframe, the loss ratio is around 60% to 70%. Naturally, it would be average. It's bound to happen in a short time span. It might be more gradual. Thank you very much.

Rafael Sperendio: Now, crop insurance, as I answered to Antonio, considering El Niño, insurance companies are more sensitive to La Niña than El Niño. This is where we have the greatest uncertainty. We are coming from three very favorable climate cycles. This is not usual considering current levels. We have historical lows in terms of loss ratio in crop insurance. The likelihood and the distribution is more asymmetrical. It's difficult to improve. The expectation is for it to increase when thinking about Antonio's question. Considering La Niña and its sensitivity, there is a substantial increase. Now, when we look at the longer timeframe, the loss ratio is around 60% to 70%. Naturally, it would be average. It's bound to happen in a short time span. It might be more gradual. Thank you very much.

Speaker #3: And if we are coming from three very favorable climate cycles, this is not usual considering current levels. We are at historical lows in terms of loss ratio in crop insurance.

Speaker #3: So, the likelihood and the distribution are more asymmetrical. It's difficult to improve, and the expectation is for it to increase. And thinking about Antonio's question...

Speaker #3: So considering La Niña and the sensitivity so there is a substantial increase now when we look at the longer time frame the loss ratio is around 60 to 70%.

Speaker #3: So, naturally, it would be average. It's bound to happen in a short time span, and it might be more gradual. Thank you very much.

Felipe Peres: Thank you, Daniel. Our next question comes from Marcelo Mizrahi from Bradesco BBI. Mizari, you can open your microphone and ask your question please.

Speaker #3: Thank you, Daniel. Our next question comes from Marcelo Misari from Bradesco BBI. Misari, you can open your microphone and ask your question, please.

Speaker #3: Thank you very much for taking my question. Now, combining themes and looking at rural insurance—first, Rafael talked about the impact. So, considering the provisional measure, you are not expecting any effect from the bill for rural credit that might impact the risk appetite?

Marcelo Mizrahi: Thank you very much for taking my question. Now combining themes and looking at rural insurance. First, Rafael talked about the impact. Considering the provisional measure, you are not expecting any effect from the bill for rural credit that might impact the risk appetite. My question is, considering this and thinking about the operational dynamics of the bank, you talked about the results before interest. In terms of the guidance in premiums, how do you see the premium guidance for the year? Also because it has not been realized, how do you see this? Is it going to be more favorable in H2? How can we see that? Mizari, thank you very much for your question. First, the impact of the bill. It is difficult to quantify impact.

Speaker #3: My question is: considering this, and thinking about the operational dynamics of the bank, you talked about the results before interest. In terms of the guidance in premiums, how do you see the premium guidance for the year? Also, because it hasn't been realized, how do you see this—is it going to be more favorable in the second half of the year? How can we see that? So, Misari, thank you very much for your question.

Rafael Sperendio: Mizari, thank you very much for your question. First, the impact of the bill. It is difficult to quantify impact. I can quantify it positive considering that now there are no more uncertainties associated. Farmers were waiting for the definition. How does this impact? Sometimes farmers in arrears that were waiting for this bill, once it is defined whether they settle the loan or whether they are eligible to the provisional measure.

Speaker #3: So, first, the impact of the bill. It's difficult to quantify the impact, so I can quantify it as positive considering that now there are no more uncertainties associated. So, farmers were waiting for the definitions—how does it impact? Sometimes, farmers in areas that were waiting for this bill, once it's defined whether to settle the loan, whether they are eligible to the provisional measure, so they will.

Rafael Sperendio: I can quantify it positive considering that now there are no more uncertainties associated. Farmers were waiting for the definition. How does this impact? Sometimes farmers in arrears that were waiting for this bill, once it is defined whether they settle the loan or whether they are eligible to the provisional measure. They can become eligible for the product for summary. We somehow expand the number of customers that are eligible considering crop insurance. Now, giving you numbers is very difficult for us. Now, about refunding considering the provisional measure, only farmers credit life insurance can be measured with a more positive effect resulting from the provisional measure, is the limitation of customers that can take credit. As to premium, I circumvented in the presentation, considering when I explained the guidance, we are just half a point below the range.

Rafael Sperendio: They can become eligible for the product for summary. We somehow expand the number of customers that are eligible considering crop insurance. Now, giving you numbers is very difficult for us. Now, about refunding considering the provisional measure, only farmers credit life insurance can be measured with a more positive effect resulting from the provisional measure, is the limitation of customers that can take credit. As to premium, I circumvented in the presentation, considering when I explained the guidance, we are just half a point below the range.

Speaker #3: Can become eligible for the product for summary and we somehow expand the number of customers that are eligible considering crop insurance. Now giving you numbers is very difficult for us.

Speaker #3: Now, about refunding, considering the provisional measure and only farmer's credit life can be measured here. A more positive effect resulting from the provisional measure is the limitation of customers that can take credit as to the premium.

Speaker #3: So our circumvented in the presentation considering when I explain the guidance we are just half a point below the range so going back to the range is absolutely feasible in the second half of the year.

Rafael Sperendio: Going back to the range is absolutely feasible in H2. Now, most of this movement of convergence depends very much on the recovery of crop insurance, which in principle, we cannot really see very clearly in terms of the level of premium origination that we can see in Q2 and Q3, especially this month or next month. For now, we are very conservative. We do not yet have any more positive prospects of bringing it back to range considering the lower half. Thank you, Marcelo. Thank you, Marcelo. Next question comes from Ricardo Buchpiguel from BTG. Good morning, Ricardo. Please ask your question. Well, thank you very much for taking my question. This prevention for a crop insurance program.

Speaker #3: Now, most of this movement of convergence depends very much on the recovery of crop insurance, which in principle we do. We can't really see very clearly in terms of the level of premium origination that we can see in the second and third quarters, especially this month and next month.

Speaker #3: So for now, we are very conservative, and we do not yet have any more positive prospects of bringing it back to range, considering the lower half.

Speaker #3: Thank you, Marcelo. Next question comes from Ricardo Busch Beagle from BTG. Good morning, Ricardo. Please ask your question. Well, thank you very much for taking my question.

Felipe Peres: Thank you, Marcelo. Next question comes from Ricardo Buchpiguel from BTG. Good morning, Ricardo. Please ask your question.

Ricardo Buchpiguel: Well, thank you very much for taking my question. This prevention for a crop insurance program. Combining some concerns of a stronger El Niño, we are seeing reinforcement of the program or creating a public-private catastrophe fund that would serve to offset the climate losses. How could this catastrophe fund affect BB Seguridade?

Speaker #3: This subvention for crop insurance program so combining some concerns of a stronger El Niño we are seeing more reinforcement of the program public private catastrophe fund that would serve to offset the climate losses.

Ricardo Buchpiguel: Combining some concerns of a stronger El Niño, we are seeing reinforcement of the program or creating a public-private catastrophe fund that would serve to offset the climate losses. How could this catastrophe fund affect BB Seguridade? Thank you for your question, Ricardo. Well, there was a reduction really, and we should consider what was budgeted and what was truly spent in the subsidy for crop insurance. We are not expecting any material reductions in terms of what is going to be effectively spent for the subsidy program. Yes, there was a considerable reduction in insured area. It is something like 15% to 18%, and it went down to 7% with a low bias. It is difficult to tell how much of this results from the subsidy program, or whether this is a result of the change in the matrix of funding for farmers.

Speaker #3: How could this catastrophe fund affect BB Seguridade? Thank you for your question, Ricardo. Well, there was a reduction, really, and we should consider what was budgeted and what was truly spent on the subsidy for crop insurance.

Rafael Sperendio: Thank you for your question, Ricardo. Well, there was a reduction really, and we should consider what was budgeted and what was truly spent in the subsidy for crop insurance. We are not expecting any material reductions in terms of what is going to be effectively spent for the subsidy program. Yes, there was a considerable reduction in insured area. It is something like 15% to 18%, and it went down to 7% with a low bias. It is difficult to tell how much of this results from the subsidy program, or whether this is a result of the change in the matrix of funding for farmers.

Speaker #3: So, we are not expecting any material reductions in terms of what is going to be effectively spent for the subsidy program, yes? There was a considerable reduction in insured area—something like 15% to 18%—and it went down to 7%. With a low bias, it's difficult to tell how much of this results from the subsidy program or whether this is a result of the change in the matrix of funding for farmers.

Speaker #3: So this is something that we need to consider. The catastrophe fund—this is an alternative that the government has been studying. We had this, and it was not as expected. It's very difficult for us to go into details because it would be too early.

Rafael Sperendio: This is something that we need to consider. The catastrophe fund, this is an alternative that the government has been studying. We had this, and it was not as expected. It is very difficult for us to go into details, because it would be too early. It might not be the right time for us to quantify the impact. There are discussions involving mandatory insurance with lines subsidized by the government, the catastrophe funds, and there are many things under discussion, but nothing has reached the final decision yet.

Speaker #3: So it might not be the right time for us to quantify the impact. So there are discussions involving mandatory insurance when I'm subsidized by the government the catastrophe fund and there are many things under discussion but nothing has been has reached the final decision yet.

Speaker #3: Thank you Ricardo. So Goldman Sachs you may ask your question please. Thank you for taking my question. So with Brazil Prev I would like to change the change in dynamics between the first and second quarter you talked about the end of the competition with exempt that had an effect and what about the second quarter so considering net inflow is it any difference from what you're expecting for the second half of the year?

Felipe Peres: Thank you, Ricardo. Goldman Sachs, you may ask your question, please.

[Analyst] (Goldman Sachs): Thank you for taking my question. With Brasilprev, I would like to change the changing dynamics between Q1 and Q2. You talked about the end of the competition with exempt that had an effect. What about Q2? Considering net inflow, is it any different from what you are expecting for the H2? Hi, Thiago. Thank you very much for your question. Well, there are many factors contributing. The high interest rate environment ends up favoring our businesses and provides slightly more stability. The side effect is that most of the flow goes to low risk strategies with lower prices.

Tiago Binsfeld: Thank you for taking my question. With Brasilprev, I would like to change the changing dynamics between Q1 and Q2. You talked about the end of the competition with exempt that had an effect. What about Q2? Considering net inflow, is it any different from what you are expecting for the H2?

Speaker #3: Hi Tiago, thank you very much for your question. Well, there are many factors contributing to the high interest rate environment, which ends up favoring our businesses and provides slightly more stability.

Rafael Sperendio: Hi, Thiago. Thank you very much for your question. Well, there are many factors contributing. The high interest rate environment ends up favoring our businesses and provides slightly more stability. The side effect is that most of the flow goes to low risk strategies with lower prices.

Speaker #3: The side effect is that most of the flow goes to low-risk strategies with lower prices, but in terms of volume, considering the favorable environment.

Speaker #3: So, first of all, we've been seeing that most of the impact last year, considering incidents of IOF and considering the amounts, very much affected the management and the calendar that we had in terms of distribution, which was designed not taking that assumption into account.

Rafael Sperendio: First of all, we've been seeing that most of the impact of last year, considering incidents of IOF and considering the amount, this very much affected the management and the calendar that we had in terms of distribution, which was designed not taking that assumption into account. The entire mechanism of induction and the incentive program for distribution was designed based on IOF at a certain level. At some point in time, we didn't even have the structure. Not just us, no one in the market had the structure for retaining the IOF. Sometimes we would suspend allocations above the limit because we couldn't retain that. This is not the case this year. Last year's impact, this year the scenario has already been defined. We are okay. We have adapted to the new environment, and all targets for incentive agreements.

Speaker #3: So the entire mechanism of induction and the incentive program for distribution was designed based on IOF at a certain level and so at some point in time we didn't even have the structure not just us no one in the market had the structure for retaining the IOF.

Speaker #3: Sometimes we would suspend allocations above the limit because we couldn't retain that. So this is not the case this year. Last year's impact—this year, the scenario has already been defined.

Speaker #3: We are okay. We had adapted to the new environment and all targets for incentive agreements. The factor number two and we can take a look at time so this is very similar to what we are seeing in terms of interest rates and inflation and what we saw in 2015 16 and the level and behavior of pension and operations was very similar.

Rafael Sperendio: The factor number two, and we can take a look at time. This is very similar to what we are seeing in terms of interest rates and inflation and what we saw in 2015, 2016, and the level and behavior of pension operations was very similar. If there is an initial movement where customers are more averse to risk because of shocks, as the structure kind of stabilizes at a higher level and we take the risk from funds, customers are slightly more at ease with the profitability. In this environment, competition with equity, private, it is more favorable for fixed income bonds. There is less competition in certain class of assets, and this is combined, as I said, to less interest on private bonds and incentivized bonds.

Speaker #3: If there is an initial movement where customers are more averse to risk because of shocks, so as the structure kind of stabilizes at a higher level and we take the risk from funds, customers are slightly more at ease with the profitability.

Speaker #3: And then, in this environment, competition with equity and private is more favorable for fixed income bonds. So there is less competition in certain classes of assets, and this is combined, as I said, with less interest in private bonds and incentivized bonds.

Rafael Sperendio: In this environment, competition with equity, private, it is more favorable for fixed income bonds. There is less competition in certain class of assets, and this is combined, as I said, to less interest on private bonds and incentivized bonds. We don't know how much came forth to each one of these sectors that are more favorable than in the last two years.

Speaker #3: So we don't know how much came forth to each one of these factors that are more favorable than in the last two years. Thank you Rafael.

Rafael Sperendio: We don't know how much came forth to each one of these sectors that are more favorable than in the last two years.

Felipe Peres: Thank you, Rafael. Thank you, Thiago. Now we have a question from Anahi Rios from Santander. Anahi, please, you may ask your question.

Speaker #3: Thank you Tiago. Now we have a question from Anais Rios from Santander. Anais please you may ask your question. Hi good morning. Can you hear me?

Anahi Rios: Hi, good morning. Can you hear me? Hello, great. Good morning. Thank you, Felipe. Good morning, everyone. Thank you very much for taking my question. Well, my question is about commission rates. Rafael talked about the dynamics that are driving up that rate. There is a mixed effect and less commissions from reinsurance. Considering that we are seeing a consolidation in the mix as today, do you think we should still see an increase in commission rates in future periods, or are the levels today more or less normal for you? Anahi, thank you for your question. Well, there are two things. You summarized well.

Anahy Rios: Hi, good morning. Can you hear me? Hello, great. Good morning. Thank you, Felipe. Good morning, everyone. Thank you very much for taking my question. Well, my question is about commission rates. Rafael talked about the dynamics that are driving up that rate. There is a mixed effect and less commissions from reinsurance. Considering that we are seeing a consolidation in the mix as today, do you think we should still see an increase in commission rates in future periods, or are the levels today more or less normal for you?

Speaker #3: Hello, great, good morning. Thank you, Felipe. Good morning everyone, and thank you very much for taking my question. My question is about commission rates. Rafael talked about the dynamics that are driving them up, but there is a mixed effect and less commissions from reinsurance. Considering that we are seeing consolidation in the mix as of today, do you think we should still see an increase in commission rates in future periods, or are the levels today more or less normal for you?

Rafael Sperendio: Anahi, thank you for your question. Well, there are two things. You summarized well. When we look at commissions of Brasilseg, there is an increase resulting from the change in mix with loss of the share of crop insurance, which is the product with the lowest commission, and increase in the share of home insurance, sometimes even credit life compared to crop insurance.

Speaker #3: Anais thank you for your question. Well there are two things. Can you summarize well? So when we look at commissions of Brazil SEC there is an increase resulting from the change in mix with loss of the share of crop insurance which is the product with the lowest commission and increase in the share of home insurance sometimes even credit life compared to crop insurance.

Rafael Sperendio: When we look at commissions of Brasilseg, there is an increase resulting from the change in mix with loss of the share of crop insurance, which is the product with the lowest commission, and increase in the share of home insurance, sometimes even credit life compared to crop insurance. In the building of the premium, which leads to higher average commissions. Even though this is in principle negative for the insurance company, it has a positive impact in a brokerage company. Part of the higher commissions is negative. When we look at the numerator of that number, we see acquisition cost of commissions paid by the brokerage firms. There is a reduction factor, which is the commission received by the premium of reinsurance, especially for crop insurance.

Speaker #3: In the building of the premium which leads to higher average commissions and even though this is in principle negative for the insurance company has a positive impact in a brokerage company.

Rafael Sperendio: In the building of the premium, which leads to higher average commissions. Even though this is in principle negative for the insurance company, it has a positive impact in a brokerage company. Part of the higher commissions is negative. When we look at the numerator of that number, we see acquisition cost of commissions paid by the brokerage firms. There is a reduction factor, which is the commission received by the premium of reinsurance, especially for crop insurance.

Speaker #3: So part of the higher commissions is negative when we look at the numerator of that number we see acquisition cost of commissions paid by the brokerage firms and there is a reduction factor which is the commission received by the premium of reinsurance especially for crop insurance.

Speaker #3: So the reduction of written premiums in a crop insurance so there is a lower volume of commissions coming from reinsurance and as a consequence there's a lower share of this commission reduction in commission rates and this would be negative.

Rafael Sperendio: The reduction of written premiums in a crop insurance, there is a lower volume of commissions coming from reinsurance. As a consequence, there's a lower share of this commission reduction in commission rates. This would be negative. From now on, there is no indication that increase in commission rates is likely to persist in a longer horizon time. Our expectations with the reduction of crop insurance is precisely of a reduction again of that rate considering the longer time span. Even if recovery doesn't happen, the share of crop insurance, considering total numbers, will not be sufficient to take this number to an even higher level.

Speaker #3: From now on, there is no indication that that increase in commission rates is likely to persist over a longer time horizon. So our expectation with the reduction of crop insurance is precisely for a reduction again of that rate, considering the longer time span. Even if recovery doesn't happen, the share of crop insurance, considering total numbers, will not be sufficient to take this number to an even higher level.

Felipe Peres: Thank you very much. Thank you, Anahi. Now we have a question from Carlos Gomez-Lopez from HSBC. Carlos.

Anahy Rios: Thank you very much.

Speaker #3: Thank you very much. Thank you Anais. Now we have a question from Carlos Gomes Lopez from HSBC. Carlos thank you very much. I regularly ask you about the renegotiation of contracts with your partners I don't know if you have any update on that.

Felipe Peres: Thank you, Anahi. Now we have a question from Carlos Gomez-Lopez from HSBC. Carlos. You are allowed to unmute now and make your question, please.

Felipe Peres: You are allowed to unmute now and make your question, please.

Carlos Gomez-Lopez: Thank you very much. I regularly ask you about the renegotiation of contracts with your partners. I don't know if you have any update on that. Second, can you give us your estimate for interest rates for the coming three years? Thank you.

Speaker #3: And second can you give us your estimate for interest rates for the coming three years? Thank you. Hi Carlos. Good morning. As to contracts we do not have any horizon for the beginning of negotiations and we did not talk to the bank about that but we are going to let you know if we have anything new coming up in that front.

Rafael Sperendio: Hi, Carlos. Good morning. As to contracts, we do not have any horizon for the beginning of negotiations. We did not talk to the bank about that, but we are going to let you know if we have anything new coming up on that front. Carlos, as to the rates, in principle, it's 14.25%. Soon there will be a Copom meeting and consensus. We are betting on a drop of 25 basis points. If that becomes true, if that happens, there is no indication that the central bank might drop interest rates at the sharper rate that we had in the beginning of the year. We might end this year with a Selic rate very similar to the one that we ended 2025 with the impact that affected the results of 2025. We had the guidance expectations for 2026.

Speaker #3: Carlos as to the rates in principle so it's 1425 so soon there will be a coupon meeting and consensus we are betting on a drop of 25 BPS if that becomes true if that happens there is no indication that the central bank might drop interest rates at a sharper rate that we had in the beginning of the year so we might end this year with a slick rate very similar to the one that we ended 2025 with the impact that affected the results of 2025 of the year we had the guidance expectations of for 2026 so we expected that financial would suffer a lot.

Rafael Sperendio: We expected that financial would suffer a lot. Now, for future years, in our vision, the cover is pricing a risk premium that is very high, way above what we think would be reasonable considering the foundations. Today, it's very hard for us to estimate how much premiums will be because of the uncertainty in the H2 considering the political scenario. Not to mention the entire geopolitical scenario that has been affecting the country, creating some inflation, and we can see the effect being reflected in our structure. Our expectation is that there will be a reduction. Now, how big this is going to be, that's very hard for us to estimate now.

Speaker #3: Now, for future years in our vision, the cover is pricing a risk premium that is very high—way above what we think would be reasonable considering the foundations. But today, it's very hard for us to estimate how much premiums will be because of the uncertainty in the second half of the year, considering the political scenario, not to mention the entire geopolitical scenario that has been affecting the country, creating some inflation, and we can see the effect being reflected in our structure.

Speaker #3: So our expectation is that there will be a reduction. Now, how big this is going to be—that's very hard for us to estimate right now.

Speaker #3: Okay but when you do your budget you are assuming that there will be lower rates in the coming two years. Yes we are going to start discussing the budget this month and we are going to use the assumptions of the economic scenario for Banco do Brasil following Banco do Brasil but we will begin budgeting over the next few days.

Carlos Gomez-Lopez: When you go to your budget, you are assuming that there will be lower rates in the coming 2 years.

Rafael Sperendio: Yes, we are going to start discussing the budget this month, we are going to use the assumptions of the economic scenario for Banco do Brasil, following Banco do Brasil, we will begin budgeting over the next few days.

Speaker #3: Thank you Carlos. As we have no more questions in line by audio we just have one question and a Q&A regarding our admin expenses that we have seen is some of the companies of the group better operational efficiency and the question here is how much of that is recurring and what we expect in terms of management of expenses.

Felipe Peres: Thank you, Carlos.

Delano Valentim de Andrade: Since we have no more questions in line by audio, we just have one question in the Q&A regarding our admin expenses that we have seen in some of the companies of the group, better operational efficiency. The question here is how much of that is recurring and what we expect in terms of management of expenses. I'm going to take the opportunity and give you my final message. This control of admin expenses is part of our day-to-day work, I believe that in H2, we are going to focus on that with great emphasis. As you've been able to see, especially in the answers that we have given, and as Rafael said, we are very confident in our business model, the sustainability, resilience of the business.

Delano Valentim: Since we have no more questions in line by audio, we just have one question in the Q&A regarding our admin expenses that we have seen in some of the companies of the group, better operational efficiency. The question here is how much of that is recurring and what we expect in terms of management of expenses. I'm going to take the opportunity and give you my final message. This control of admin expenses is part of our day-to-day work, I believe that in H2, we are going to focus on that with great emphasis. As you've been able to see, especially in the answers that we have given, and as Rafael said, we are very confident in our business model, the sustainability, resilience of the business.

Speaker #3: I'm going to take the opportunity and give you my final message. So this control of admin expenses is part of our day-to-day work and I believe that in the second half of the year we are going to focus on that with great emphasis.

Speaker #3: And as you've been able to see especially in the answers that we have given and as Rafael said we are very confident in our business model the sustainability resilience of the business we know that we are faced a very complicated scenario not just in Brazil but also internationally geopolitics influences lots of volatility we have just had the provisional measure renegotiation of rural debts and we believe that somehow this will bring back many customers and may favor our business and even so we are going to work very carefully so that we may continue delivering the robust results that we have been seeing so far.

Delano Valentim de Andrade: We know that we have faced a very complicated scenario, not just in Brazil, but also internationally, geopolitics influences, lots of volatility. We have just had the provisional measure of renegotiation of rural debt, and we believe that somehow this will bring back many customers and may favor our business. Even so, we are going to work very carefully so that we may continue delivering the robust results that we have been seeing so far. A special highlight after the closing of H1, we had half a trillion BRL in reserves in Brasilprev. This is a historical landmark, not just for our company, but for the entire private pension market in Brazil. I believe that we still have a lot to build.

Delano Valentim: We know that we have faced a very complicated scenario, not just in Brazil, but also internationally, geopolitics influences, lots of volatility. We have just had the provisional measure of renegotiation of rural debt, and we believe that somehow this will bring back many customers and may favor our business. Even so, we are going to work very carefully so that we may continue delivering the robust results that we have been seeing so far. A special highlight after the closing of H1, we had half a trillion BRL in reserves in Brasilprev. This is a historical landmark, not just for our company, but for the entire private pension market in Brazil. I believe that we still have a lot to build.

Speaker #3: A special highlight after the closing of the first half of the year we had half a trillion BRL in reserves in Brazil prep. This is a historical landmark not just for company but for entire private pension market in Brazil and I believe that we still have a lot to build.

Speaker #3: We’re working very closely and intensely with Banco do Brasil to try and develop new journeys, new products, and to have a better product mix to try to somehow fill the gaps that we have already seen here — as we mentioned — that arise especially from high interest rates that end up impacting the credit cycle, and, as a consequence, some of our projects.

Delano Valentim de Andrade: We're working together and very intensely with Banco do Brasil to try and develop new journeys, new products, to have a better product mix, to try somehow fill the gaps that we have already seen here, as we mentioned, debt rise, especially from high interest rates that end up impacting the credit cycle and as a consequence, some of our projects. The idea is to keep up the good work and the hard work to continue delivering the same very good results. I would like to thank your attendance to our earnings release video call. I'd like to thank our shareholders and customers for their trust in us. Thank you so much. Well, now we are ending our earnings release video call. There is a short research after the event just to hear what you think about it. Thank you so much and have a good day.

Delano Valentim: We're working together and very intensely with Banco do Brasil to try and develop new journeys, new products, to have a better product mix, to try somehow fill the gaps that we have already seen here, as we mentioned, debt rise, especially from high interest rates that end up impacting the credit cycle and as a consequence, some of our projects. The idea is to keep up the good work and the hard work to continue delivering the same very good results. I would like to thank your attendance to our earnings release video call. I'd like to thank our shareholders and customers for their trust in us. Thank you so much. Well, now we are ending our earnings release video call. There is a short research after the event just to hear what you think about it. Thank you so much and have a good day.

Speaker #3: The idea is to keep up the good work and the hard work to continue delivering the same very good results. I would like to thank your attendance to our earnings release video call.

Speaker #3: I would like to thank our shareholders and customers for their trust in us. Thank you so much. Well now we are ending our earnings release video call.

Speaker #3: So there is a short research. After the event just to hear what you think about it. Thank you so much and have a good day.

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Q2 2026 BB Seguridade Participacoes SA Earnings Call

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