Equity Snap: BB Seguridade (BBSE3 BZ): 2Q26 earnings in line, growth is absent

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Equity Snap: BB Seguridade (BBSE3 BZ): 2Q26 earnings in line, growth is absent

3 August 2026

Equity Snap: BB Seguridade Equities Insurance

(BBSE3 BZ)

2Q26 earnings in line, growth is absent Brazil

◆ Stable earnings despite decline in pension business; still a Carlos Gomez-Lopez, CFA

dividend play Head of EM and LatAm Financials HSBC Securities (USA) Inc.

carlos.gomezlopez@us.hsbc.com

+1 212 525 5253

BB Seguridade (BBSE3 BZ, BRL41.26, Buy, TP BRL46.00)

(Priced as of 31 Jul 2026)

Overall results in line: BB Seguridade reported earnings of BRL2.15 billion, or

BRL1.11 per share, 1% below our estimate and 2% above consensus; recurrent

earnings declined 4% y/y and 3% q/q. A better result at Brasilseg, the insurance unit,

offset a poorer quarter for the pension business on lower financial income. Earnings

remain relatively resilient given the travails of the parent company Banco do Brasil

(BBAS3 BZ, Buy, TP BRL29.00), and the company remains a consistent dividend

payer. See full results and charts in the next page.

Brasilseg holds despite decline in premiums: GWP growth was more negative (-

4.9% y/y, from -2.3% in Q1), as credit origination, especially for rural insurance,

remains weak (rural premiums declined 11% y/y). However, a better combined ratio

vs. Q1 (with lower claims and administrative expenses) and a lower tax rate, resulted

in a modest 2% decline in earnings. Investment returns declined vs. 2Q25.

Pensions down on investment losses; reserves still growing: Earnings declined

exclusively because of a loss in income (a loss of BRL49 million, vs. an average gain

of BRL219 million in the previous six quarters). Contributions, now more volatile on a

quarterly basis, increased 4% y/y, and still yet to reflect the impact of higher taxation

introduced in 2025.