BB Seguridade Participações S A : Comunicado ao Mercado

MD&A

1Q24

• P R E S E N T A T I O N

The Management Discussion and Analysis - MD&A presents the economic and financial status of BB Seguridade Participações S.A. (BB Seguridade). Directed to financial analysts, shareholders and investors, this quarterly report provides an analysis of economic and financial

indicators of BB Seguridade, stocks' performance and other aspects considered relevant for the assessment of the company's

achievements.

The consolidated financial statements were prepared in compliance with the International Financial Reporting Standards - IFRS.

On the other hand, the analysis provided on this report are based on the accounting standards adopted by insurance regulators in Brazil - Susep and ANS -, except when otherwise mentioned.

• O N - L I N E A C C E S S

This MD&A is available at BB Seguridade's IR website, where additional information about the Company is also available such as: corporate

structure, corporate governance, historical data, among other important information for shareholders and investors. The company's website can be accessed through www.bbseguridaderi.com.br/en.

This report makes references and statements about expectations, expected synergies, growth estimates, earnings forecasts and future strategies regarding BB Seguridade. Such statements are based on current expectations, estimates and projections of the Managementabout future events and financial trends that may affect the businesses that the company is involved in.

These forward looking statements are not guarantee of future performance and involve risks and uncertainties that could overextendthe control of the management, and thus can result in balances and values different from those anticipated and discussed in this report. The expectations and projections depend on market conditions (technological changes, competitive constraints on products, prices, etc.), on the country's macroeconomic performance (interest and exchange rates, political and economic changes, inflation, changes in tax rules, etc.) and on international markets.

Future expectations based on this report should consider the risks and uncertainties that involve BB Seguridade's businesses. BBSeguridade has no responsibility to update any estimate contained either in this report or in previously published reports.

Tables and charts in this report show, in addition to the accounting balances, financial and managerial figures. The relative variationrates are calculated before the rounding procedure in R$ million. The rounding method used follows the rules established by Resolution 886/66 of IBGE's Foundation: if the decimal number is equal or greater than 0.5, it increases by one unit, if the decimalnumber is less than 0.5, there is no increase.

BB Seguridade Participações S.A. | Management Discussion & Analysis 1Q24	2

1Q24 Earnings Conference Call

May 6th, 2024

Portuguese with simultaneous translation into English

Time: 11:00 AM (Brasilia time) 10:00 AM (EST)

Livestream via ZOOM platform

To register for the event and receive the connection information, access Zoom idor the investor relations website www.bbseguridaderi.com.br/en

Contacts

Investor Relations

• [phone]

• [e-mail]

IR Website: www.bbseguridaderi.com.br/en

Rua Alexandre Dumas, 1671 - Térreo - Ala B Chácara Santo Antônio - São Paulo - SP CEP: 04717-903

Index

1.	Summary	4
2.	Earnings Analysis	14
3.	Balance Sheet Analysis	17
4.	Underwriting and Accumulation	20
	Brasilseg	23
	Brasilprev	42
	Brasilcap	54
	Brasildental	67
5.	Distribution	69
5.1	BB Corretora	70
6.	Information in IFRS 17	78
7.	Definitions	84

BB Seguridade Participações S.A. | Management Discussion & Analysis 1Q24	3

1 . S U M M A R Y

• N E T I N C O M E A N A L Y S I S

The Brazilian Securities and Exchange Commission - CVM Rule No. 42/2021 made it mandatory for Brazilian Public-held companies the adoption of the principles of IFRS 17 standards for the recognition, measurement, presentation, and disclosure of insurance contracts as of January 1, 2023. Thus, since the 1Q23, the audited financial statements of BB Seguridade follows the new accounting standards of IFRS 17, particularly regarding the recognition of the equity investment balance and results arising from Brasilseg, Brasilprev and Brasildental that operate insurance contracts within the new accounting standards.

On the other hand, the Brazilian insurance regulators, namely Superintendência de Seguros Privados - Susep and National Supplementary Health Insurance Agency - ANS, have not adopted the IFRS 17 for their sectors and, therefore, the insurance and health insurance companies shall comply with the former standard (IFRS 4), both for recognition, measurement, presentation, and disclosure of financial information, as well as for provisions, liquidity and capital management, including the regulatory capital, that weigh the shareholders' remuneration policies.

For the reason set forth herein, except when otherwise mentioned, the analysis on this report are based on managerial information prepared according to IFRS 4, which are not audited at the holding level. For information purposes, Chapter 6 of this document presents the audited financial statements in accordance with IFRS 17 of the holding co., Brasilseg and Brasilprev so that the stakeholders can get used to the new reporting models. This information does not rule out the need of reading the explanatory notes to the audited financial statements to understand the accounting practices and impacts on the transition and on the recognition of insurance contracts' income.

Finally, it should be noted that, due to operational issues, as of January 2023, the accounting recognition of the investment in Brasildental will be carried out with a delay of one month. Thus, the 1Q24 equity income contains information related to December 2023, January 2024 and February 2024, immaterially impacting the comparison with 1Q23 earnings, which includes information relating to January and February 2023.

BB Seguridade Participações S.A. | Management Discussion & Analysis 1Q24	4

Table 1 - Income statement of the holding

		Quarterly Flow		Chg. %
R$ thousand	1Q23	4Q23	1Q24	On 1Q23	On 4Q23
Equity income	1,763,693	2,054,059	1,836,816	4.1	(10.6)
Underwritting and accumulation businesses	1,052,575	1,256,833	1,038,669	(1.3)	(17.4)
Brasilseg	678,617	828,098	758,591	11.8	(8.4)
Brasilprev	328,738	377,423	229,425	(30.2)	(39.2)
Brasilcap	41,855	46,282	47,225	12.8	2.0
Brasildental	3,365	5,030	3,428	1.9	(31.8)
Distribution businesses	707,711	783,060	793,262	12.1	1.3
Other	3,407	14,166	4,886	43.4	(65.5)
G&A expenses	(8,944)	(5,293)	(7,427)	(17.0)	40.3
Net investment income	5,791	9,931	16,602	186.7	67.2
Earnings before taxes and profit sharing	1,760,541	2,058,697	1,845,991	4.9	(10.3)
Taxes	0	(3,729)	(2,367)	-	(36.5)
Net income	1,760,542	2,054,967	1,843,624	4.7	(10.3)

In 1Q24, BB Seguridade's net income grew 4.7% YoY, to R$1.8 billion. The main factors that led to the increase of R$83.1 million were:

• BB Corretora (+R$85.6 million): with the growth in brokerage revenues and an increase in net investment income, due to the reduction in expenses with interest accrual on dividends payable and an expansion of more than R$1.1 billion in the average balance of financial investments that more than offset the impact of the lower Selic rate on financial revenues;
• Brasilseg (+R$80.0 million): driven mainly by the evolution of retained earned premiums and the 2.8 p.p. reduction in loss ratio; and
• Brasilcap (+R$5.4 million): due to the growth in net investment income, with increase in the average balance of investments and improvement of the financial margin, which is explained by the reduction in the cost of liabilities.

On the other hand, Brasilprev's contribution to the result was R$99.3 million lower as compared to the 1Q23, due to the drop in the net investment income caused both by the temporal mismatch in inflation accrual on assets and liabilities of traditional plans, and the negative mark-to-market result explained by the steepening in the forward yield curve.

1. Seguridade's normalized net income, which sets apart the impact of temporal mismatch in inflation rates, grew 7.4% compared to 1Q23.

Figure 1 - Non-interest operating results¹

	Chg. On 1Q23
Brasilseg	12.0%
Brasilprev	7.4%
Brasilcap	-
Brasildental	72.3%
BB Corretora	12.2%
Total	10.9%

¹Non-interest operating results before taxes, weighted by the equity stake

Figure 2 - Normalized net income (R$ million)

			2,057	2,055
	1,786	1,969	1,911	2,032	1,918
	1,841			1,844
1,761

(26)		(128)			146		23		(74)
1Q23	2Q23		3Q23	4Q23	1Q24
	Net income	IGP-M lag	Normalized net income¹

1. Net income excluding the impacts of the one-month lag in the IGP-M accrual on liabilities.

BB Seguridade Participações S.A. | Management Discussion & Analysis 1Q24	5

1Q24

% Net income

▪ N E T I N V E S T M E N T I N C O M E A N A L Y S I S

Figure 3 - Combined net investment income

19.2	20.4	22.4	22.0

461453

376

338

1Q23

2Q23

3Q23

4Q23

Net investment income (R$ million)

In 1Q24, the combined net investment income of BB Seguridade and its investees reached R$220.9 million, net of taxes, an amount 34.7% lower than that reported in the same period of 2023. The

12.0 drop is largely explained by the negative variation in Brasilprev's

net investment income, explained by: (i) contraction in inflation rates pegged to the major part of the assets guaranteeing defined benefit plans in the current period (IPCA 1Q24: +1.4% vs. 1Q23: +2.1% | IGP -M 1Q24: -0.9% vs. 1Q23: +0.2%), while the 1-month lagged IGP-M, which adjusted most of the liabilities of these plans, did not decline with the same magnitude (IGP-M 1Q24 lagged:

221 +0.3% | IGP-M 1Q23 lagged: +0.6%); and (ii) negative mark-to- market result due to the steepening in the forward yield curve. The reduction in the average Selic rate compared to 1Q23 was another factor that drove the retraction in the net investment income, being partially offset by the 9.5% expansion in the combined average balance of floating rate investments of all companies in the group.

Figure 4 - Inflation rate (%)			Figure 5 - Average Selic rate (%)
2.1			1.8	1.4	13.65	13.65	13.27
					12.24
	0.8	0.6	1.5				11.28
0.6
		-0.5	1.1	0.3
0.2
-2.7	-2.8
		-0.9

	-4.6
1Q23	2Q23	3Q23	4Q23	1Q24
	IPCA	IGP-M	IGP-M (lagged)¹	1Q23	2Q23	3Q23	4Q23	1Q24

1. IGP-M with a lag of one month.

Figure 7 - Financial investments (%)	Figure 8 - Financial investments by
		index (%)
	10.2	0.2	14.8
	Mar/24
Mar/24	44.7
38.2
	45.1		46.9
	44.9	0.1	14.1
	Dec/23
Dec/23	7.3
42.4
	47.8		43.4
	47.4	0.1	12.7
Mar/23	Mar/23
6.4	38.7
	46.3		48.5
		Other
	Held to maturity
		Pre-fixed
	Available for sale
		Floating
	Trading		Inflation

Figure 6 - Forward yield curve (%)

12.70	12.60	12.61	12.61	12.66
				dec/22
				mar/23
			12.25	12.50
11.97		12.06
11.90
			10.66
			10.46
		10.16	mar/24
10.03
9.90
			dec/23
9.92			9.94	10.07
9.61	9.72
DI1F25	DI1F26	DI1F27	DI1F28	DI1F29

Figure 9 - Trading portfolio by index

(%)

	0.3
Mar/24	2.2
12.9
	84.6
	0.2
Dec/23	3.5
7.6
	88.7
	0.2
Mar/23	2.0
14.4
	83.4
	Other
	Pre-fixed
	Inflation
	Floating

BB Seguridade Participações S.A. | Management Discussion & Analysis 1Q24	6

• 2 0 2 4 G U I D A N C E

Regarding the 2024 Guidance indicators, all of them outperformed in 1Q24.

For the variation in non-interest operating result (ex-holdings), the beat was motivated by the lower loss ratio than expected for rural insurance. In premiums written by Brasilseg and in Brasilprev's PGBL and VGBL pension reserves, the outperformance was already expected in the beginning of the year, with gradual convergence towards the Guidance ranges throughout the year.

Figure 10 - 2024 estimates

Estimate range

Non-interest operating result

(ex-holding)

	10.9%
5%	10%
	Observed 1Q24

Percentage variation of the combined recurring non-interest operating results of Brasilseg, Brasilprev, Brasilcap, Brasildental and BB Corretora, according to accounting standards adopted by Susep and ANS, weighted by the equity stake held in each company and adjusted by extraordinary events, as released by the company on its quarterly MD&A.

Estimate range

Premiums written of

Brasilseg

15.3%

8%	13%
	Observed 1Q24

Percentage variation of the premiums written reported by Brasilseg, adjusted by extraordinary events, as released by the company on its quarterly MD&A

Estimate range

PGBL and VGBL pension

plans reserves of Brasilprev

8%	12%
	Observed 1Q24

Percentage variation of PGBL and VGBL pension plans reserves, adjusted by extraordinary events, as released by the company on its quarterly MD&A.

15.2%

Table 2 - Breakdown of the non-interest operating result by company

	Quarterly Flow		Chg. %
R$ thousand	1Q23	1Q24	On 1Q23
Non-interest operating result	2,128,340	2,360,015	10.9
Brasilseg	762,390	853,769	12.0
Brasilprev	366,259	393,404	7.4
Brasilcap	6,858	(3,694)	-
Brasildental	3,904	6,725	72.3
BB Corretora	988,928	1,109,812	12.2

BB Seguridade Participações S.A. | Management Discussion & Analysis 1Q24	7

• S U M M A R Y O F I N V E S T E E S P E R F O R M A N C E S

Brasilseg | Insurance (for further details, please refer to the page 23)

Table 3 - Summarized income statement

		Quarterly Flow		Chg. %
R$ thousand	1Q23	4Q23	1Q24	On 1Q23	On 4Q23
Premiums written	3,719,856	4,072,182	4,289,882	15.3	5.3
Changes in technical reserves and premiums ceded	(674,300)	(753,105)	(952,094)	41.2	26.4
Retained earned premiums	3,045,556	3,319,077	3,337,788	9.6	0.6
Retained claims	(890,817)	(764,775)	(881,842)	(1.0)	15.3
Retained acquisition costs	(829,865)	(926,968)	(962,958)	16.0	3.9
G&A	(306,378)	(454,893)	(351,358)	14.7	(22.8)
Other	(1,840)	(1,886)	(3,119)	69.5	65.3
Non-interest operating result	1,016,656	1,170,555	1,138,510	12.0	(2.7)
Net investment income	223,005	272,329	202,195	(9.3)	(25.8)
Earnings before taxes and profit sharing	1,239,661	1,442,884	1,340,705	8.2	(7.1)
Taxes and profit sharing	(329,582)	(333,470)	(323,721)	(1.8)	(2.9)
Net income	910,079	1,109,414	1,016,983	11.7	(8.3)

In 1Q24, the net income of the insurance operation grew 11.7% compared to 1Q23, driven by the evolution of retained earned premiums (+9.6%) and the reduction in loss ratio (-2.8 p.p.), which led to the growth of 12.0% of non-interest operating result. These effects were partially offset by the lower net investment income, mainly due to the decline in the average Selic rate.

Premiums written increased by 15.3% YoY, highlighting: (i) credit life (+35.2%), due to the higher volume of credit origination and reduction in cancellations; (ii) rural lien (+54.1%), driven by the new lien insurance for cattle, which was launched at the beginning of the year; and (iii) credit life for farmers (+28.0%), a consequence of growth in the average ticket and increase in volumes sold.

The G&A ratio rose 0.5 p.p. as compared to the same period in 2023, with the increase in general and administrative expenses (+14.7%), mainly in the lines of impairment provision, internal marketing and third-party services.

Figure 11 - Key performance indicators

	Chg. On 1Q23
Breakdown of premiums written
Rural	12.1%
Credit Life	35.2%
Term Life	2.7%
Others	19.4%
Performance ratios
Loss ratio	(2.8 p.p.)
Commission ratio	1.6 p.p.
G&A ratio	0.5 p.p.
Combined ratio	(0.8 p.p.)

BB Seguridade Participações S.A. | Management Discussion & Analysis 1Q24	8

Brasilprev | Pension plans (for further details, see page 42)
Table 4 - Summarized income statement
		Quarterly Flow		Chg. %
R$ thousand	1Q23	4Q23	1Q24	On 1Q23	On 4Q23
Total revenue from pension and insurance	14,789,147	13,736,685	16,778,322	13.5	22.1
Provision for benefits to be granted	(14,784,086)	(13,732,024)	(16,774,089)	13.5	22.2
Net revenue from pension and insurance	5,061	4,661	4,234	(16.3)	(9.2)
Management fee	838,542	864,720	890,449	6.2	3.0
Acquisition costs	(183,099)	(187,703)	(189,086)	3.3	0.7
Retained earned premiums	19,799	53,199	57,355	189.7	7.8
G&A	(158,332)	(232,993)	(207,418)	31.0	(11.0)
Other	(33,560)	27,239	(30,926)	(7.8)	-
Non-interest operating result	488,410	529,123	524,608	7.4	(0.9)
Net investment income	246,591	302,489	(5,049)	-	-
Earnings before taxes and profit sharing	735,002	831,611	519,560	(29.3)	(37.5)
Taxes and profit sharing	(296,656)	(328,842)	(214,134)	(27.8)	(34.9)
Net income	438,346	502,770	305,426	(30.3)	(39.3)

In 1Q24, net income from the pension operation contracted 30.3% as compared to the same period in 2023, to R$305.4 million, a performance attributed to the net investment income that registered a negative balance of R$5.0 million in the quarter, compared to positive R$246.6 million in 1Q23. Among the factors that affected the financial result, the main ones were: (i) temporal mismatch in inflation rates pegged to assets and liabilities of defined benefit plans; and (ii) negative mark-to-market result due to the steepening in the forward yield curve.

Non-interest operating result grew 7.4% YoY, largely due to the 6.2% increase in revenue with management fees, driven by the 14.5% expansion of pension reserves in the last 12 months. On the other hand, the average annualized management fee fell by 0.04 p.p., impacted by the greater flow of investments directed towards more conservative products, which led to a reduction in the share of multimarket funds in total reserves, reaching 21.4% at the end of March 2024 (-4.3 p.p. YoY | -0.6 p.p. QoQ).

Pension contributions grew 13.5% YoY, totaling R$16.8 billion, the highest quarterly volume in the historical series. The redemption ratio reached 8.6%, the lowest level since 4Q20 (-3.2 p.p. YoY | -1.4

1. QoQ). The evolution of contributions, combined with the improvement in the redemption ratio, in addition to lower portability in the period (-0.5 p.p. YoY | -0.3 p.p. QoQ), resulted in a net inflow of R$5.6 billion, an amount almost three times higher than that recorded in 1Q23.

Figure 12 - Key performance indicators

	1Q24	Chg. On 1Q23
Net inflows (R$ million)	5,574	189.5%
Reserves (R$ billion)	406	14.5%
Management fee (% )	0.92	(0.04 p.p.)
Redemption ratio (% )	8.6	(3.2 p.p.)
Portability ratio (% )	0.9	(0.5 p.p.)
Cost to income ratio (% )	44.9	1.5 p.p.

BB Seguridade Participações S.A. | Management Discussion & Analysis 1Q24	9

Brasilcap | Premium Bonds (for further details, see page 54)

Table 5 - Summarized income statement

		Quarterly Flow		Chg. %
R$ thousand	1Q23	4Q23	1Q24	On 1Q23	On 4Q23
Premium bonds collection	1,429,108	1,731,916	1,663,808	16.4	(3.9)
Changes in provisions for redemption, lottery and bonus	(1,277,716)	(1,563,103)	(1,500,939)	17.5	(4.0)
Revenue with load fee	151,392	168,812	162,870	7.6	(3.5)
Result with lottery	6,408	22,247	17,001	165.3	(23.6)
Acquisition costs	(124,015)	(162,191)	(159,367)	28.5	(1.7)
G&A	(23,882)	(34,111)	(26,024)	9.0	(23.7)
Other	367	(370)	(12)	-	(96.7)
Non-interest operating result	10,272	(5,613)	(5,532)	-	(1.4)
Net investment income	95,043	112,292	126,312	32.9	12.5
Earnings before taxes and profit sharing	105,315	106,679	120,780	14.7	13.2
Taxes and profit sharing	(42,628)	(37,363)	(50,050)	17.4	34.0
Net income	62,687	69,317	70,730	12.8	2.0

In 1Q24, net income from premium bonds operation was 12.8% higher than that recorded in the same period in 2023, reaching R$70.7 million. The performance is attributed to the growth in net investment income (+32.9%), with an expansion in the average balance of interest earning assets and an increase in the financial spread, resulting from the reduction in the cost of liabilities.

Premium bonds collection increased by 16.4%, a movement attributed to the higher average ticket. Revenue with load fee did not keep the same pace of collection and grew 7.6%, with the average load fee quote falling 0.8 p.p. This dynamic is due to the greater share of short-term unique payment bonds (12 and 24 months) in collection mix, since these products have a lower quota compared to longer-term products (36 and 48 months).

Figure 13 - Key performance indicators

	Chg. On 1Q23
Premium bonds collection
Unique payment	25.8%
M onthly payment	1.5%
First Installments	51.4%
Recurring Installments	(0.6%)
Average quotes

Reserve quote	1.0 p.p.
Lottery quote	(0.2 p.p.)
Load fee quote	(0.8 p.p.)
Other ratios
Technical reserves	12.1%
Net interest margin	0.6 p.p.

BB Seguridade Participações S.A. | Management Discussion & Analysis 1Q24	10