|BB Seguridade - Profile|
BB Seguridade Participações S/A (“BB Seguridade”), is the insurance group of Banco do Brasil S/A (“Banco do Brasil” or “BB”), Latin America's largest bank in terms of assets, according to data from September 2012 provided by Economatica, that has 56.2 million customers.
Two complementary businesses comprise the activities of BB Seguridade:
(i) products of insurance, open pension plans, and special savings bonds called “titulos de capitalização”; and
(ii) their respective brokerage services.
As a result of the corporate reorganizations undertaken since 2008, BB Seguridade is the fastest-growing company in the brazilian insurance industry in terms of volume of premiums and contributions (35.2% in last year), according to the Superintendence of Private Insurance (SUSEP), and occupies a prominent position in each of its segments of operation.
BB Seguridade's prominent position is based on the quality of products offered and on the exclusivity of sales through the Banco do Brasil distribution channels. This model, known as "Bancassurance", can be defined as a partnership or relationship between a bank and an insurance company, in which the bank acts as a distributor of such insurance company.
The network of Banco do Brasil's distribution channels includes 94% of Brazilian municipalities, comprising of: 5.4 thousand branches, 13.8 thousand points of service, 44.3 thousand ATMs, 20 thousand shared self-service terminals and 17.9 thousand points of bank correspondents.
The importance of this partnership is significant because it is part of BB’s strategy to offer products that are suited to each segment of clients. And, the insurance, open pension and capitalization products are essential to this relationship strategy.
Besides this distribution network, BB Seguridade has also a network of over 15 thousand authorized brokers all over the Brazilian territory whose purpose is mainly to sell vehicle and non-life insurance lines.
Finally, the Company expands its distribution capacity by associating with non-banking partners, retailers, which permit the customization of its broad range of products upon acquisition by the customers of retailers. (Affinity).
Solidity of the "Banco do Brasil" brand
The "Banco do Brasil" brand is one of the best known and valuable in Brazil. For this reason it was included among the most remembered trademarks by the Brazilian consumer in 2012, according to a survey conducted by the Data Folha Institute (the Top of Mind award in 2012), and it is also the financial institution most remembered by Brazilians in the new "Finance" category. Previously, for 20 consecutive years, it was the bank "most remembered" by Brazilians in a survey conducted by the same Institute. In addition, BB is placed as the third most valuable brand in Latin America, according to the survey "150 Most Valuable Brands in Latin America" conducted in 2012 by the consulting firm Brand Finance.
BB Seguridade benefits from the association with the BB brand since the public attributes to the Company the same perception of quality associated with the brand, including solidity, tradition and reliability. The value of the brand is proven by the more than 200 years of Banco do Brasil's existence and its leadership in deposits (28.4% of market share in September 2012, according to Central Bank data).
Due to their tradition as well as their simple and relatively stable rules, savings accounts enjoy enormous trust among the Brazilian population. When allied with the Banco do Brasil brand, savings accounts find a faithful public at all income levels, especially among savers with the lowest purchase power. In moments of crisis this can be even more noticeable. The population seeks to guarantee that their savings will be safe in a traditional investment and in a solid-brand bank. Accordingly, a savings account in Banco do Brasil acquires value that distinguishes it from other financial investments and transforms it into a cultural trait in Brazil.
Those attributes are highly desired by the customers seeking to insure their property, their future and their families. They also support the distribution strategy of the Company's products, especially life insurance and open private pension plans.