Brazil’s BB Seguridade Raises Full-Year Forecasts as Q3 Profit Jumps 69%

Brazilian insurer BB Seguridade Participacoes SA raised some full-year forecasts on Monday after reporting a 69% jump in third quarter profit on the back of a strong commercial performance in insurance, pension plans and premium bonds.

BB Seguridade, which is controlled by state-run lender Banco do Brasil SA, said in a securities filing it now expects its full-year non-interest operating income to grow 24% to 27%, up from a previous forecast of a 15%-to-20% increase.

The insurer, which had already revised up its outlook for the key metric last quarter, said the latest upgrade came on the back of a continuous loss ratio improvement and higher-than-expected sales, mainly in the insurance segment.

BB Seguridade reported a third quarter net profit of 1.65 billion reais ($326.36 million), up 69% from a year earlier, slightly above expectations of a 1.5 billion-real net income from analysts polled by Refinitiv.

The company also said it now expects written premiums at its Brasilseg insurance unit to grow 25% to 28% this year, up from 20% to 25% in the previous estimate, citing growth in rural insurance and credit life insurance sales.

($1 = 5.0557 reais)

(Reporting by Gabriel Araujo, editing by Louise Heavens and Susan Fenton)

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