J.P. Morgan LatAm FTM 20 May 26 Banco ABC; MBRF; RenaissanceRe; Brazil Autos & Rentals; LatAm Q-Score and More

Research evidence excerpt

J.P. Morgan LatAm FTM 20 May 26 Banco ABC; MBRF; RenaissanceRe; Brazil Autos & Rentals; LatAm Q-Score and More

Latam Equity Research AC Latin America Equity Research

(1-212) 270-6000 20 May 2026 J P M O R G A N

morganwise@jpmorgan.com

Our EPS estimates are unchanged (2Q26 at $11.52 and 2027 at $37.39). The primary updates to our model are (1) slower

premium growth in the other property and casualty/specialty businesses and (2) lower net investment income (net investment

income in 1Q26 was $421 million, well below our $448 million estimate; we lowered our net investment income assumptions for

prospective periods), offset by (3) lower expenses across all lines, (4) higher reserve releases in the other property division,

and (5) higher share repurchases in 2Q26 (RNR repurchased $105 million of stock in 2Q26 through April 24; we are assuming

a total of $350 million of buybacks in 2Q26).

Brazil Autos & Rentals (Guilherme Mendes/Marcelo Motta)

Potential Subsidized Auto Loans Program - Marginally Negative for Rentals But Small Positive for

Auto Parts

The Federal Government is expected to announce today at 3:30 pm BRT (2:30pm ET) a new financing line with BNDES to

support taxi and app drivers (Uber and 99) - link here . While an official announcement is still pending, local news reports that

the new credit line is expected to amount to R$30bn, targeting vehicle acquisitions of up to R$150,000, vehicle maintenance,

and working capital, with interest rates below the SELIC rate (14.5%), compared with the average auto loan rate of ~26% per

year. Assuming the full R$30bn program is allocated towards vehicle acquisitions at an average price of R$125,000, this would

imply approximately 240,000 vehicles, representing roughly 10% of expected new vehicle sales for the year .