BB Seguridade (BBSE3) says that rain in RS should have little impact on results

SÃO PAULO (Reuters) -BB Seguridade (BBSE3) does not expect the rains that destroyed cities in Rio Grande do Sul to have a significant effect on its results in the coming quarters, given the low contracting of property insurance in the Center-South region.

“We do not expect any type of material impact from this catastrophe on our results,” said the company’s financial director, Rafael Sperendio, in a conference with analysts.

According to him, a large part of the region’s soybean harvest has already been harvested and in other crops BB Seguridade’s exposure is very low.

“In terms of claims, this event is concentrated in physical structures, such as facilities, storage, buildings, but unfortunately the culture of protection is not widespread,” said the executive.

Sperendio stated that currently residential insurance does not reach 10% of BB Seguridade’s total premiums “and the South is a fraction of this small portion”.

The executive, however, stated that the demand for insurance should grow in the Center-South, but it is still too early to make projections as there is uncertainty about the space in families’ budgets for this.

Asked about possible increases in insurance prices, the company’s financial director stated that there is currently no expectation for increases in rural insurance in the next cycle, although there is an expectation of an increase in demand from the middle of the year when meteorologists say they expect the effects to begin. of the La Niña climate phenomenon.

BB Seguridade earlier announced a 5% increase in net profit for the first quarter compared to a year earlier, with the performance at the beginning of the year being better than the company’s forecast for the entire year.

The financial director of the insurance and pension arm of Banco do Brasil stated that the probability of the company being able to stay in the upper half of its projections will “increase significantly” after the first quarter results.

The company’s shares rose 0.6% at 1:32 pm, while the Ibovespa rose 0.3%.