BB Seguridade in Brazil, which is the pension and insurance arm of Banco do Brasil reported a net profit of R$1.995bn for its first quarter of 2025, an increase of 8.3% year over year.
Brasilseg’s core unit was responsible for the performance, with its improved financials and fewer claims.
Strong insurance, mixed group results
InfoMoney says that Brasilseg is a strong company because of its investment returns, and the fact it has fewer claims.
Brasilprev, BB Corretora, and other group companies also achieved solid financial results.
The BB Seguridade consolidated financial results rose by 37.9% to R$320 millions, mainly due to lower losses on mark-to market and a favorable Selic.
Brasilcap – the capitalization division of the group – saw its share price plummet due to hedge loss and increasing liabilities.
BB Seguridade’s quarterly net profit fell 8.2% due to a weaker performance of its investments.
Brasilseg’s profit that is attributable the parent company fell by 12.9% due to a decline in premiums as well as an increase in claims.
Andre Haui, CEO, stated that “this quarter reflects our customer-centric strategy, with an emphasis on modern, customized, and sustainable solution.”
Technical Outlook: BBSE3 aims for further heights
Despite a small 0.50% drop in the latest session, BBSE3 stocks are up 1.94% this month and near their historic highs.
Recently, the stock price hit R$42.77. This is now a key resistance level.
Technical indicators continue to be bullish with BBSE3 remaining above the key moving averages.
Stocks could reach short-term goals of R$43.40 – R$44.65 if they break through R$42.77 with strong volume.
The resistance level for the longer term is R$45.27. R$47.30 and R$50.00 are also possible.
If momentum fails, the key levels of support are R$41.54, R$41.00 and R$39.63. Then, R$37.55 and R$35.75.
The medium-term trend is positive
Stock has been rising for the past five months, and it is now up by 23.06% on a year-to date basis. The weekly chart continues to show a bullish pattern.
BBSE3 could face short-term pressure to sell, as the RSI is at 81.13.
If the price falls below R$39.00, it may be exposed to support levels at R$38.00. R$35.75 and R$33.55.
A breakout above R$42.77 may trigger new buying interest.
Brasilprev has a large amount of legacy debt, which is why 43.1% (or the investments) of Brasilprev are inflation linked securities. The remaining 41.3% of its assets consist of post-fixed assets that have been tied to CDI.
Investors will continue to watch closely as BB Seguridade tests key technical levels and continues to report strong results.
This article Brazil’s BB Seguridade Q1 profits up 8.3% due to insurance gains and reduced claims first appeared on The ICD
