Brazil’s BB Seguridade Q1 profit up 8.3% on insurance gains and lower claims

Brazil’s BB Seguridade, the insurance and pension arm of Banco do Brasil, reported a first-quarter 2025 net income of R$1.995 billion, marking an 8.3% increase year-over-year.

The performance was largely driven by improved financial results at its core insurance unit, Brasilseg, alongside fewer claims.

Strong insurance, mixed group results

According to InfoMoney, Brasilseg’s strength came from robust investment returns and reduced claim volumes.

Other group companies like BB Corretora and Brasilprev also delivered solid results, with Brasilprev seeing notable financial gains.

The consolidated financial result for BB Seguridade rose to R$320 million—up 37.9% from Q1 2024—thanks to lower mark-to-market losses and a favorable Selic rate.

However, Brasilcap, the group’s capitalization unit, saw a sharp decline due to hedge losses and rising liabilities.

On a quarterly basis, BB Seguridade’s net profit slipped 8.2%, mainly due to weaker performance from its holdings.

Brasilseg’s profit attributable to the parent fell 12.9% amid a dip in premiums and a rise in retained claims.

CEO André Haui stated, “This quarter reflects our strategy centered on the customer, with a focus on offering modern, personalized, and sustainable solutions.”

Technical outlook: BBSE3 eyes further highs

Despite a slight 0.50% dip in its latest session, BBSE3 shares are up 1.94% in May and trading near historic highs.

The stock recently hit R$42.77, which now serves as the key resistance level.

Technical indicators remain bullish, with BBSE3 staying above key moving averages.

A break above R$42.77 on strong volume could push the stock toward short-term targets of R$43.40 to R$44.65.

Longer-term resistance levels include R$45.27, R$47.30, and even R$50.00.

Should momentum falter, key support zones lie at R$41.54 and R$41.00, followed by deeper levels at R$39.63, R$37.55, and R$35.75.

Medium-term trend remains positive

The stock has posted gains for five straight months and is up 23.06% year-to-date, maintaining its bullish structure on the weekly chart.

However, with the RSI at 81.13, BBSE3 is in overbought territory, which could spark short-term selling pressure.

A fall below R$39.00 may expose the stock to lower supports at R$38.00, R$35.75, and R$33.55.

On the upside, a breakout above R$42.77 could trigger fresh buying interest.

As of March, 43.1% of the company’s investments were in inflation-linked securities—mainly used to support Brasilprev’s legacy obligations—while 41.3% were in post-fixed assets tied to CDI.

Investors will be watching closely as BB Seguridade continues to post strong results while testing key technical levels.

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