10 Years - Bradesco RI

10 Years
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Macroeconomic Overview
Octavio de Barros
Director Chief Economist
Bradesco Insurance and Pension Plans Group
Marco Antônio Rossi
CEO
Customer Relationship Management
Candido Leonelli
Managing Director
Bradesco
Domingos Figueiredo de Abreu
Executive Vice President and IRO
O
Insurance Group – Timeline
21,24%
2001
Altered to
Bradesco Vida e
Previdência
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Insurance Group - Performance
Variation
1H10
1H11
1,404
1,561
11.2%
14,359
17,511
21.9%
27.4
27.7
0.3 p.p.
Combinated
Ratio (%)
84.9
85.9
1.0 p.p.
Loss Ratio (%)
72.5
72.1
-0.4 p.p.
1H10/1H11 Results
Net Income
(R$ Millions)
Revenue
(R$ Millions)
ROAE
(%)
Y-o-Y
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Insurance Group - Performance
1H10/1H11 Results
Techinical Provisions
(R$ Millions)
Shareholder’s Equity
(R$ Millions)
Financial Assests
(R$ Millions)
Variation
1H10
1H11
79,308
93,938
18.4%
10,750
12,375
15.1%
88,515
103,847
17.3%
Y-o-Y
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Insurance Group - Performance
Acumuluted up to Jun/2011
Indemnifications and
Benefits
R$ 11.2
billions
Appointments,
Exams and
Hospitalizations
40.9
millions
Active Securities
Savings Bonds
19
millions
Insured
38
millions
Lifes
20.9
millions
Vehicles
1.5
million
Homes
1.8
million
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Insurance Group - Performance
Life and
Pension Plans
Auto/PC
1st
3rd
912
83
401
165
9,552
1,932
4,385
1,400
81,991
3,828
3,888
4,096
23,109
3,567
8,408
2,888
Health
1st
Saving Bonds
2nd
Up to Jun/2011
Net Income
R$ Millions
Revenue
R$ Millions
Technical Provisions
R$ Millions
Clients
Millions
Market Share Mai/2011
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Brazilian Insurance Market vs. the major economies
Brazilian Insurance Market
growth expectations
Brazilian Insurance Market
compared to other
important economies
Shift in the overall economic
power framework, with the
emerging countries playing a
greater role in the global
economy
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Compared to other relevant economies, there could
exist potential for an increase in the insurance industry
penetration in relation to GDP
Insurance Penetration as a % of GDP
Ranking
55
Russia
50
Argentina
44
Brazil
39
China
38
Chile
34
Norway
30
India
27
Spain
24
Austria
21
Germany
18
United States
17
Italy
6
South Korea
5
Hong Kong
4
Netherlands
Real average growth of
premiums in 2010
Life
Non
Life
Total
Industrializes
Countries
1,8%
1,0%
1,4%
Emergent
Markets
13,0%
8,5%
11,0%
World
3,2%
2,1%
2,7%
Brazil
12,6%
7,6%
10,3%
Bradesco
Seguros
9,6%
12,4%
11,6%
3 United Kingdom
2
South Africa
1
Taiwan
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Life
0
2
4
6
8
10
Source :Sigma Report 2010,Swiss Re, E&Y Analysis
9
12
14
16
Non Life
18
20
Similarly to the Countries analyzed, there could have potential
for increasing the premium per capita in Brazil
Premium per Capita by Country - USD
Ranking
76
66
61
53
48
47
40
32
27
23
21
20
18
17
13
14
12
5
2
India
Turkey
China
Argentina
Russia
Brazil
Chile
South Africa
Spain
South Korea
Austria
Italy
Germany
Taiwan
Norway
Hong Kong
United States
United Kingdom
Netherlands
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157,7
292,3
190,7
Life premiums per capita
Non-life premiums per capita
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169,9
500
1000
1500
2000
2500
Source :Sigma Report 2010,Swiss Re, E&Y Analysis
10
3000
3500
4000
4500
5000
5500
6000
Considering the perspectives of GDP growth and total
premiums in Brazil, it is estimated that in 2020 the penetration
rate in the Country will be comparable to Chile and above
China nowadays
Evolution of Penetration Rate in Brazil
USD Millions
300.000
Historical
Projected
Penetration similar to Chile and
Norway and above China
nowadays (4.1%)
250.000
200.000
150.000
Non Life
Life
100.000
50.000
2000 2001 2002 2003 2004 2005 2006 2007 2.008 2.009 2.010 2.011 2.012 2.013 2.014 2.015 2.016 2.017 2.018 2.019 2.020
Penetration Rate
2.4%
2.7%
3.1%
4.1%
Obs: Life considers VGBL, Life and AP, Pensions and Health Insurance (just specialized). Non Life considers Property and Casualty.
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Source: SUSEP e World Bank, database 2011. E&Y analysis.
11
The insurance sector has been growing above the average of
the Brazilian economy, which demonstrates the increasing of
the relevance of the insurance industry in the Country
Average Rate of Annual Nominal Growth (2000 - 2010) *
**
Economy
12,0%
Insurance Market
15,1%
Life, PA and VGBL
27,3%
Property
16,4%
Auto
10,6%
Specialized Health
9,4%
PGBL and Other Pensions
7,0%
***
Other Insurance
0,0%
10,6%
5,0%
10,0%
15,0%
20,0%
25,0%
* Average evolution represents the historical nominal growth with insurance premiums. It considers personal (Life, AP and VGBL), property
and casualty, pensions (PGBL and others) and health (just specialized health insurance). It do not consider savings with lottery.
** Anual average GDP growth in Brazil during the period.
*** Other insurance covers all the various general insurances not shown such as financial, transportation, among others.
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Source: World Bank e SUSEP, E&Y Analysis
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30,0%
The insurance industry in Brazil has grew by 15.1% per year
on nominal average, confirming the recent evolution of the
sector
Historical behavior of insurance premiums in Brazil during 2000 – 2010 *
3,0%
2,5%
R$ millions 120.000
Nominal growth of
520% 2000 – 2010
3,5%
2,7%
2,4%
3,1%
2,7%
2,7%
2,7%
2,8%
2,9%
3,2%
110.000
2,9%
100.000
2,4%
90.000
80.000
2,0%
70.000
1,5%
60.000
50.000
1,0%
40.000
0,5%
30.000
0,0%
20.000
2000
2001
2002
2003
2004
2005
Premiums
2006
2007
2.008
2.009
2010
% Penetration
R$ 27,7 billions
R$ 58,7 billions
R$ 113,4 billions
* Average trends represents the historic nominal growth of insurance premiums. It considers the premiums for personal, general, pensions
(PGBL and others) and specialized health. It does not consider savings with lottery
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Source: SUSEP, 2010. E&Y Analysis
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The domestic insurance market is concentrated in the Southeast and
South regions. However, these regions are growing at slower pace
than other regions of the Country, which indicates an opportunity to
expand the insurance market for these regions
Population: 15 MM
Total insurance market share*: 1.8%
Population: 13 MM
Property & Casualty share: 1.8%
Population: 52 MM
Total insurance market share*: 6.9%
Life & Pensions share: 1.8%
Total insurance market share*: 8.3%
Property & Casualty share: 7.8%
Nominal growth in 2010**: 22%
Property & Casualty share: 7.8%
Life & Pensions share: 7.1%
Life & Pensions share: 5.5%
Nominal growth in 2010**: 24%
Nominal growth in 2010**: 20%
North
Northeast
Population: 27 MM
Total insurance market share*: 15.6%
Population: 78 MM
Midwest
Total insurance market share*: 67.5%
Property & Casualty share : 17.0%
Southeast
Life & Pensions share : 13.9%
Property & Casualty share : 65.6%
Life & Pensions share : 71.8%
Nominal growth in 2010**: 15%
South
Nominal growth in 2010**:17%
* Contribution in total insurance premiums for each region.
** Nominal growth compared to 2009.
Note: It considers insurance premiums, contributions withheld and savings with lottery. Property and casualty segment
includes all products such as auto, property, DPVAT, transportation, financial risks, responsibilities, among others.
Source: FENASEG
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Considering the growth population and GDP by region, there
could be an opportunity for expansion of the per capita
comsumption in the North and Midwest regions
Nominal GDP per Capita
+231%
+206%
+208%
North
Northeast
+194%
+108%
Midwest
Southeast
South
•Accumulated IPCA of 94.77% during the period of 2000-2010, and 70.82% for the forecasted period.
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Source: FENASEG 2010, E&Y analysis.
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Insurance Group – Positioning
Investments in
Operational Efficiency
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Insurance Group – Positioning
Risk
Underwriting
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Insurance Group – Positioning
Innovation and
New Products
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Insurance Group – Positioning
National
Scope
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Insurance Group – Positioning
Specialized
Insurers
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Insurance Group – Positioning
 3.6 million insured
 10.3 % market share
 2.9 million clients
 21.4% market share
 8.4 millions of Insured
 52.3% market share
 23.1 million clients
 27% market share
Acquisitions and Participations
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Synergies Within Bradesco
Bradesco
Insurance Broker
Channel
Group
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10 Years
of APIMEC Meeting
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