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Profit decreased 23.2% in the second quarter to R$753.7 million - Money Times

Profit decreased 23.2% in the second quarter to R$753.7 million – Money Times

Even with the good performance of the distribution sector, especially BB Corretora, the exacerbation of the epidemic negatively affected the results of other lines (Photo: Disclosure / BB Seguridade / Facebook)

a BB Security (BBSE3) reported an adjusted net profit of R$753.7 million in the second quarter of 2021, down 23.2% compared to R$981.8 million in the same period last year, according to the company’s report on Monday (2).

According to BB Seguridade, even with the good performance of the distribution sector, especially BB Corretora, the exacerbation of the Covid-19 pandemic and the volatility of the financial result negatively affected the result of the other lines.

Brasilprev showed a decline of R$171 million in profit, due to the negative financial result, driven by the discrepancy in inflation rates that updated most assets (IPCA and IGP-M for the current period) and liabilities (largely updated by IGP-M with average lag 1 month) in defined benefit plans.

Brasilseg’s profit has already fallen below R$100.1 million due to the worsening sanitation crisis in the country. The loss ratio increased by 19.7 percentage points.

Brasilcap reported a decline in profit of R$16 million, also impacted by a lower financial result, but partly offset by a decrease in general and administrative expenses and acquisition costs.

Written premiums were R$3.1 billion in the first quarter, representing a growth of 22.2% year-on-year. Rural insurance was the most prominent in this period, growing by 32% compared to the second quarter of 2020, with development in all areas of the business due to the increase in credit to finance the 2021/2022 harvest.

The commission rate fell 2.6 percentage points year on year. General and administrative expenses decreased, with the index improving by 4.2 percentage points mainly due to a reversal of the Rural Insurance Stabilization Fund payment allocation of R$43.9 million.

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earnings

BB Seguridade has informed that it will pay 1 billion Rls in earnings Interim results for the first half of 2021.

Payment will be made on August 23 and will be on a contribution basis on August 11. From August 12th, the shares will be trading “without dividends”.