1Q2021 Earnings Release - Mziq
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Earnings Release
1Q2021
1
Investor Relations
ri@caixaseguridade.com.br
+55 (11) 3181-8565
Summary
1. Message from the Executive Board .................... 3
2. Highlights 1T21................................................... 5
3. Caixa Seguridade Participações .......................... 6
4. Commercial performance ................................... 8
4.1 Risk Business ......................................................... 8
4.1.1 Mortgage ............................................................... 9
4.1.2 Credit Life ............................................................ 11
4.1.3 Homeowner ........................................................ 12
4.1.4 Life ....................................................................... 13
Conference Call 4.1.5 Business ............................................................... 14
Portuguese with simultaneous translation 4.1.6 Auto ..................................................................... 15
4.1.7 Personal accidents .............................................. 16
into English 4.2 Accumulation Business ....................................... 18
4.2.1 Private Pension ................................................... 18
May 12, 2021 4.2.2 Credit Letter ........................................................ 19
3:00 pm (Brasília time) 4.2.3 Premium Bonds [Capitalização] .......................... 20
2:00 pm (New York time) 5. Participations and Businesses .......................... 23
5.1 Profit and loss account, participations and
Portuguese businesses ....................................................................... 28
Brazil Phone Number: +55 (11) 3181-8565 5.2 Structure ............................................................. 29
Code: Caixa Seguridade Glossary ....................................................................... 33
Replay phone: +55 (11) 3193-1012
Replay code: 9153693#
English
Phone: +1 (844) 204-8942
Code: Caixa Seguridade
Replay phone: +55 (11) 3193-1012
Replay code: 7894163#
2
Earnings Release
1st quarter 2021
1. Message from the Executive Board
On April 29, 2021, Caixa Seguridade concluded its initial public offering of shares (IPO) at B3 and was
listed on the Novo Mercado segment under the ticker CXSE3. The Offer totaled a financial volume of R$
5.0 billion, considering the base offer (450 million shares) and the supplementary lot (67.5 million
shares).
We would like to welcome our new 108,973 shareholders representing the free-float of 17.25% of Caixa
Seguridade, of which 107,586 are individuals. We ratify our commitment with the sustainable growth of
one of the largest insurance companies in Brazil with high dividend payouts.
In addition to the completion of the IPO, the first quarter of 2021 marks the beginning of Caixa
Seguridade's new business model, with (i) new exclusivity agreements, whith bring greater economic
participation and greater governance to the Company, in line with its important role in defining and
management of the strategy for the sale of insurance products under the CAIXA brand, and (ii) a new
operating model in the distribution business, with the start of Caixa Corretora's activities, 100% of Caixa
Seguridade, which becomes the insurance broker companies operating in the CAIXA distribution
network.
In this context, Caixa Seguridade's recurring net income accumulated R$ 431.7 million in the first quarter
of 2021, an increase of 4.3% in relation to the same period of the previous year. Operating Revenues
grew 6.2%, totaling R$ 523 million at the end of March.
Even in the midst of the transition to new partnerships, commercial performance in the first quarter of
2021 maintained the pace of growth in the sale of products from Caixa Seguridade's main segments. The
issuance of insurance premiums totaled R$ 2.4 billion1 and was 22.6% higher compared to the first
quarter of 2020. The contributions received from private plans totaled R$ 7.4 billion in this quarter and
were 41.5% higher than the same period last year.
Still operationalized by the old partnership, funds collected from consortia grew 0.8% compared to the
previous year and the collection of savings bonds was 20.1% lower. For these two segments, the new
agreements were signed at the end of March and the new companies are in the process of implementing
the portfolio.
The performance of the distribution business, formed by revenues from access to the network and use
of the brand (BDF) and now also by revenues from Caixa Corretora, totaled R$ 194.9 million in this
quarter, against R$ 173.1 million in the first quarter the previous year, an increase of 12.6%.
The implementation of the new agreements brought Caixa Seguridade the challenges inherent in
changing partners. In addition to active participation in the definition and strategic management of the
transition stages, the Company held training lives with employees and managers from different regions
of Brazil and visits to branches with the highest volume of business. On the occasion, self-training
1 This result included the premiums issuance of Too Seguros and PREVISUL
3Earnings Release
1st quarter 2021
materials and FAQs were made available to enable employees to sell the new products and clarify the
main doubts.
In terms of commercial strategies, it should be noted that the Sales Team Program continues to
consolidate itself as an important instrument for mobilizing and engaging employees in the CAIXA
distribution network. As of January 2021, around 1,000 (thousand) new salespeople working in the
Wholesale and Private segments joined the program. In addition, a new award model was approved,
together with CAIXA, in which the Sales Team gained even more prominence, as it is a qualification and
bonus criterion in the award amount paid quarterly by CAIXA to employees and managers.
It is also worth mentioning the availability of an option for contracting Life Insurance by the customer,
through the Internet Banking channel CAIXA (desktop) and APP CAIXA. This delivery makes it possible to
expand the offer of insurance products on CAIXA's digital channels.
The realization of the IPO, and the implementation of the new business model reinforce the need for a
structure that guarantees quick responses to the market, based on balance and separation of functions
and that facilitate the decision-making process, with agility for the fulfillment of the various framing
requirements and respect for rules, norms and precepts, with the strengthening of governance and
transparency.
In this sense, at the beginning of the year, the reorganization of Caixa Seguridade's organizational
structure was approved, with the objective of making the main strategies underway at Caixa Seguridade
viable. Even though still not fully implemented, this reorganization was of great importance in concluding
the new partnerships and in making the IPO process feasible.
Caixa Seguridade must remain prepared for this new context, with a strengthened governance pillar and
improved monitoring and management mechanisms as a holding company, in relation to its subsidiaries.
We thank you for your attention and we again wish to welcome all new shareholders!
4Earnings Release
1st quarter 2021
2. Highlights 1Q21
In this quarter, Caixa Seguridade's main focus was the implementation of the
2. new
Highlights 1T21
strategic partnership structure and the preparation for the IPO process,
yet it maintained its commercial performance in CAIXA's distribution network,
with excellent results in the main operating segments.
COMMERCIAL PERFORMANCE
(1Q21/1Q20)
Insurance Issued Social Security
Premiums Contributions
+22,6% +41,5%
Resources Collected Premium bonds
from Credit Letters [Capitalização]
[Consórcio] collections
+0.8% -20.1%
The complete implementation of the new business model - with greater
economic participation and a new brokerage model - and the maturing of
new partnerships will provide greater value generation for Caixa Seguridade's
shareholder.
NET INCOME OPERATING
(RECURRING) REVENUE
R$ 431,7 mi R$ 523,1 mi
1Q20: R$ 413,9 mi (+4,3%) 1Q20: R$ 492,8 mi (+6,2%)
4Q20: R$ 453,4 mi (-4,8%) 4Q20: R$ 558,1 mi (-6,3%)
ROE
(RECURRENT)
1Q20: R$ 34,3%
42,9 % p.y. 4Q20: R$ 34,8%
5Earnings Release
1st quarter 2021
3. Caixa Seguridade Participações
R$ million 1Q21 1Q20 ∆% 4Q20: ∆%
Operating revenue 523,1 492,8 6,2% ● 558,1 -6,3% ●
Revenue from equity investments 328,2 12/31/2019 2.6% ● 320.2 2.5% ●
CAIXA Partnerships 310.0 308.2 0.6% ● 295.5 4.9% ●
Too Seguros 11.1 7.0 59.1% ● 17.1 -35.1% ●
PAN Corretora 7.0 4.5 56.2% ● 7.6 -8.0% ●
Commissioning revenue 194.9 173.1 12.6% ● 237.8 -18.0% ●
Revenue from distribution network access
and use of brand 78.9 173.1 -54.4% ● 237.8 -66.8% ●
Income from brokerage or intermediation
116.0 0.0 - ● 0.0 - ●
of insurance products
OTHER OPERATING INCOME/(EXPENSES) -36.4 -30.5 19.5% ● -36.3 0.4% ●
Administrative costs -13.6 -16.8 -19.1% ● -13.2 2.9% ●
Tax Expenses -21.1 -13.7 53.9% ● -23.1 -8.8% ●
Other Operating Revenues 0.0 0.0 - ● 0.0 - ●
Other operating expenses -1.8 0.0 - ● 0.0 - ●
Operational Result 486.7 462.3 5.3% ● 521.8 -6.7% ●
Financial result -0.2 4.6 -103.9% ● 6.0 -103.0% ●
Financial income 0.8 5.5 -84.7% ● 6.0 -86.1% ●
Financial expenses -1.0 -0.8 21.6% ● 0.0 - ●
Earnings Before Interest and Taxes 486.5 466.9 4.2% ● 527.8 -7.8% ●
INCOME TAX AND SOCIAL CONTRIBUTION -54.8 -53.0 3.5% ● -73.4 -25.3% ●
Profit Sharing - management 0.0 0.0 - ● -1.0 - ●
Net income for the period R$ millions 431.7 413.9 4.3% ● 453.4 -4.8% ●
Revenue from investments in equity interests (MEP) increased by 2.6% in the first quarter of 2021
compared to the same period in 2021. Compared to the fourth quarter of 2020, growth was 2.5%.
With the reorganization of the partnerships and the entry into operation of the new partnerships, the
results distributed by the companies that operate or operated in the CAIXA distribution network are now
presented in this report on a consolidated basis, CAIXA partnership, maintaining comparability with
previous periods. In this consolidated group, MEP revenues grew 0.6% compared to the 1st quarter of
2020 and were 4.9% higher than the 4th quarter of 2020.
The results of the new partnerships and the results from the run-off policies and indirect participations
maintained by CNP Brasil are considered in the CAIXA Partnerships, and the details of this structure are
presented in item 5 of this release.
Also contributed to the growth of MEP, the insurance revenues of Too Seguros and PAN Corretora, which
grew respectively 59.1% and 56.2% in relation to the first quarter of 2020. The growth is due to the
reduction of Too Seguros' operating expenses and the increase in Pan Corretora's Operating Revenues.
6Earnings Release
1st quarter 2021
Revenues from access to the distribution network and use of the brand (BDF) and revenues from
brokerage or intermediation of insurance products totaled R$ 194.9 million in the first quarter of 2021,
a result 12.6% higher than the first quarter of the year previous year and 18.8% lower than the fourth
quarter of 2020. Highlight for the credit life brokerage fee revenue of R$ 78 million and the BDF of the
mortgage sector of 34.6 million, with a 19.1% growth compared to the first quarter of 2020. Compared
to the last quarter of 2020, BDF's decline is mainly explained by the decline in the credit life segment,
whose performance is associated with the granting of credit at CAIXA.
Other operating income/expenses went from R $ -30.5 million in the first quarter of 2020 to -36.4 million
in the first quarter of 2021. The variation is due to the increase in tax expenses, due to the increase in
the share of BDF and brokerage revenues in the Company's results. In the same period, there was a
16.8% reduction in administrative expenses, mainly due to the reduction in personnel expenses.
The Company's Financial Result ended the first quarter of the year with a balance of - R$ 179.89
thousand. The negative amount is justified by the expense with monetary restatement of the mandatory
dividends and by the lower financial income due to the lower balance of investments during the period
due to the investment made in the new companies and the increase in the dividends distributed this
year. Thus, in the comparison of the first quarter of 2021, against the first quarter of 2020, there was an
increase of 21.6% in Financial Expenses and a decrease of 84.7% in Financial Revenues.
In this context, Caixa Seguridade earned R$ 431.7 million in net income, an increase of 4.3% in relation
to the first quarter of 2020 and a decrease of 4.8% in relation to the last quarter of 2020. The growth
observed in the year-over-year comparison was mainly anchored in the rise in BDF and brokerage
revenues. However, when comparing the result with the last quarter of the previous year, the main
factor was the drop in the performance of sales of insurance products, related to seasonal variation and
the effect of the third wave of the COVID-19 pandemic.
The current recurring return on equity (ROE) of 42.9% per year was above that recorded in the first
quarter of 2020 (34.3%) and in the fourth quarter of 2020 (34.8%). In the composition of the index, the
variation is due to the positive performance of net income for the first quarter, which reinforces the
indicator's numerator, and to the reduction in Shareholders' Equity, resulting from the payment of
dividends, sensitizing the ROE denominator.
The net margin of 82.5% registered a negative variation of 1.5 pp in relation to the first quarter of 2020,
reflecting the 7.4% increase in tax expenses, due to the reduction in the share of MEP revenues, in the
composition of Operational Revenue.
7Earnings Release
1st quarter 2021
4. Commercial performance
In the first quarter of 2021, the Operating Margin of the CAIXA Branch Segments grew 5.8% compared
to the first quarter of 2020, due to the good performances registered in the Insurance, Credit Letter and
Premium Bonds segments. The Insurance segment totaled R$ 833.1 million in the first quarter of the
year, accounting for 72% of the Operational Margin of the Branch.
4.1 Risk Business
In this group are listed the branches of the insurance segment, which showed a growth of 20.6% in the
comparison between the first quarter of 2021 and the same period of 2020, driven mainly by the volume
of Mortgage, Credit life, Homeowner and Business.
PREMIUM ISSUED
1Q21 1Q20 ∆% 4Q20: ∆%
R$ million
Mortgage 681.5 629.1 8.3% ● 666.4 2.3% ●
Homeowner 155.8 94.4 65.1% ● 176.0 -11.5% ●
Credit life insurance 625.7 451.8 38.5% ● 765.1 -18.2% ●
Life insurance 414.3 412.3 0.5% ● 423.7 -2.2% ●
Personal Accidents 29.9 18.1 65.3% ● 33.9 -11.8% ●
Auto 72.3 80.6 -10.3% ● 100.0 -27.7% ●
Business 119.8 59.7 100.9% ● 17.4 590.5% ●
Others 38.8 27.0 43.5% ● 46.7 -16.8% ●
INSURANCES 2,138.2 1,773.0 20.6% ● 2,229.2 -4.1% ●
8Earnings Release
1st quarter 2021
Earned premiums were 13.2% higher than the first
quarter of 2021, growth mainly explained by the
performance of the Credit Life and Homeowner
branches. Compared to the fourth quarter of 2020, the
increase was 2.1%, due to the positive effect of the
variation in technical provisions in the Credit Life,
Homeowner and Auto segments.
The accident index, which had been reduced to 25.1% in
the fourth quarter of 2020, increased again in the first
quarter of 2021, driven by the increase in claims in the
Mortgage, Credit Life and Life lines, as a result of the
pandemic of COVID-19. When excluding claims related to
the COVID19 pandemic, the claims ratio for the first
quarter of 2021 is 20.6%, 2.6 pp less than that recorded
in the first quarter of the previous year and 9.2 p.p below
the 1Q21 index, when considering all types of claims.
The commissioning index, which calculates the
proportion between acquisition costs and earned
premiums, decreased in relation to the first and fourth
quarters of 2020, reflecting the growth of earned
premiums at a faster pace than the variation in costs. It
should be noted that between the fourth quarter of 2020
and the first quarter of 2021, there was an 8.4%
reduction in acquisition costs.
Despite the growth in claims, the positive evolution of
earned premiums, associated with the reduction in
operating expenses and the favorable variation in
acquisition costs, justify the 5.5% growth in the
operating margin of the risk business lines, in
comparison with the first quarter of 2020. Highlight for
the growth of the Credit Life, Homeowner, Auto and
Personal Accidents lines.
4.1.1 Mortgage
Mortgage insurance is mandatory by law and is an essential part of the characteristics of real estate
financing, serving to settle or amortize the outstanding balance in the event of death or disability.
9Earnings Release
1st quarter 2021
Calculated on the basis of the borrowing balance and the age of the borrower, this branch also includes
coverage, benefits and assistance.
The table below shows a managerial view for the Housing segment, for a better analysis of the behavior
of the indicators and the performance of the segment in Caixa Seguridade's results:
R$ million 1Q21 1Q20 ∆% 4Q20: ∆%
Premium Issued 681.5 629.1 8.3% ● 666.4 2.3% ●
Changes in technical reserves for premiums 0.0 0.0 - ● 0.0 - ●
Earned Premiums 681.5 629.1 8.3% ● 666.4 2.3% ●
Claims occurred -274.4 -133.9 104.9% ● -199.8 37.3% ●
Acquisition costs -50.8 -46.2 9.8% ● -53.3 -4.8% ●
Other operating income and expenses -2.2 -20.4 -89.3% ● -2.1 2.5% ●
Operating margin 354.2 428.5 -17.3% ● 411.1 -13.9% ●
Homeowner insurance shows a
continuous growth in the volume of
premiums issued during the year 2020
and in the first quarter of 2021, even
during the most critical period of the
pandemic. This performance is related
to the stock effect, since the issuance
of home insurance premiums is
monthly and the stock of policies
influences the flow of emissions each year. The increase in growth in the granting of real estate financing,
although it does not have an immediate effect on the production of the Mortgage segment, serves as an
indication of growth in future premiums. In the 1Q21/1Q20 comparison, the increase in the issuance of
premiums for the Mortgage segment was 8.3%.
Even with the growth in the issuance of premiums in
the comparison between the first quarter of 2021 and
that of 2020, the Mortgage segment presented a
drop of 17.3% in the operating margin for the period
due to the increase in the values related to claims
costs, motivated by mainly due to the effects of
COVID.
10Earnings Release
1st quarter 2021
The loss ratio for the Mortgage segment shows the
increase in the amount of claims in relation to earned
premiums, with an increase of 20.0 percentage points
compared to 1Q21/1Q20. When claims related to the
COVID-19 pandemic are excluded, the loss ratio is
26.1%, 14.2 p.p. lower for the first quarter of
2021.The commissioning rate remained stable,
showing the same percentage level in the first quarter of 2021 as in the first three months of 2020.
4.1.2 Credit Life
With one or more insurance coverage for the risk of people such as death, disability, unemployment/loss
of income, serious illnesses and temporary incapacity, credit life insurance guarantees the settlement or
amortization of debts linked to credit or financing operations undertaken by the debtor, in the in the
event of a covered claim, under the terms established in the contractual conditions, up to the limit of
the insured capital contracted.
Below we show a table with a managerial view to analyze the behavior of the indicators and the
performance of the branch in the Caixa Seguridade result:
R$ million 1Q21 1Q20 ∆% 4Q20: ∆%
Premium Issued 625.7 451.8 38.5% ● 765.1 -18.2% ●
Changes in technical reserves for premiums -232.3 -165.5 40.3% ● -384.0 -39.5% ●
Earned Premiums 393.4 286.3 37.4% ● 381.1 3.2% ●
Claims occurred -87.4 -52.8 65.5% ● -65.3 33.8% ●
Acquisition costs -161.4 -119.2 35.4% ● -161.2 0.1% ●
Other operating income and expenses -6.1 -16.8 -63.8% ● -9.0 -32.8% ●
Operating margin 138.6 97.5 42.2% ● 145.6 -4.8% ●
In the comparison between the first
quarter of 2021 and the same period of
the previous year, the issuance of
premiums increased by 38.7%. Such
growth is due to the increased
penetration of the credit life branch in
the granting of payroll loans, as well as
the processing of premiums related to
the operations of the Support Program
for Micro and Small Enterprises
(PRONAMPE).
11Earnings Release
1st quarter 2021
In the comparison between the first quarter of
2021 and the same period of 2020, the operating
margin grew by 42.2%, in line with the growth
obtained with the issuance of premiums.
With the increase in the number of claims by 65.5%
in the comparison 1Q21/1Q20, motivated by the
effect of the pandemic, the loss ratio showed a
growth of 3.8 percentage points. When excluding
claims caused by the COVID-19 pandemic, the
claims ratio of the first quarter of 2021 is 13.5%, 4.9
pp less than that recorded in the first quarter of
2020 and 8.7 pp less than the index 1Q21, when
considering all claims. In the comparison of the
same period, the commissioning rate decreased by
0.6 percentage points, due to the proportional
increase in acquisition costs and premiums earned.
4.1.3 Homeowner
Homeowner insurance aims to protect individual residences - such as houses and/or apartments used as
normal or vacation homes - against damage caused by fire, lightning and explosion. It is also possible to
hire additional coverages such as electrical damage, theft, damage to third parties, windstorm, glass
breakage, vehicle collision, among others, in addition to the 24-hour assistance service.
Below is a managerial view of the Homeowner branch to analyze the behavior of the indicators and the
branch's performance in Caixa Seguridade's results:
R$ million 1Q21 1Q20 ∆% 4Q20: ∆%
Premium Issued 155.8 94.4 65.1% ● 176.0 -11.5% ●
Changes in technical reserves for premiums -54.0 -13.6 295.9% ● -83.2 -35.2% ●
Earned Premiums 101.9 80.7 26.2% ● 92.8 9.7% ●
Claims occurred -18.5 -18.3 1.3% ● -17.6 5.4% ●
Acquisition costs -29.1 -33.3 -12.5% ● -44.8 -35.1% ●
Other operating income and expenses -11.2 -10.1 11.3% ● -0.7 1470.6% ●
Operating margin 43.1 19.2 124.9% ● 29.7 45.0% ●
12Earnings Release
1st quarter 2021
In the comparison between the first
quarter of 2021 and the first quarter of
2020, the Homeowner segment
presented a growth of 65.1%. The
performance is related to the
strategies adopted by Caixa Network
to improve the penetration of
Homeowner insurance in Mortgage
credit, with the holding of training lives
with employees and managers from
different regions of Brazil and the provision of self-training materials and FAQ, aiming to train employees
for the sale of products and helping to clarify doubts.
The operating margin grew by 124.9% in the comparison 1Q21/1Q20, due to the maintenance of claims
and the decrease in acquisition costs. The behavior of these results in relation to the earned premiums,
put a positive pressure on the accident and commission rates in the comparison between the periods
1Q21 and 1Q20.
4.1.4 Life
Life insurance aims to prevent policyholders from being caught off guard with extra expenses and being
able to recover financially if the insured person dies, has a serious illness or becomes disabled. When
contracting life insurance, the insured person chooses the amount and conditions of the indemnity to be
paid and the people who will receive it.
The table below presents a managerial view for the Life branch up to the Operating Margin:
R$ million 1Q21 1Q20 ∆% 4Q20: ∆%
Premium Issued 414.3 412.3 0.5% ● 423.7 -2.2% ●
Changes in technical reserves for premiums 25.9 20.4 26.8% ● 11.6 122.3% ●
Earned Premiums 440.1 432.7 1.7% ● 435.3 1.1% ●
Claims occurred -109.2 -75.6 44.4% ● -92.4 18.1% ●
Acquisition costs -81.7 -84.9 -3.7% ● -90.8 -10.0% ●
Other operating income and expenses -21.4 -48.1 -55.4% ● -26.8 -20.0% ●
Operating margin 227.8 224.2 1.6% ● 225.3 1.1% ●
13Earnings Release
1st quarter 2021
The result of premiums issued by the
Life line comprises, in addition to
premiums from the sale of Life
insurance, the risk portion of private
pension contributions. For the first
quarter of 2021, the Life branch
showed an increase of 0.5% in the
amount of premiums issued in
comparison with the first quarter of
2020. In addition to the increase in the
granting of housing credit, generating new opportunities for selling life insurance, the Company
promoted in the first quarter of 2021 the expansion of the offer of security products on CAIXA's digital
channels.
Despite the 44.4% increase in the number of claims,
motivated by the COVID effect, the Operating Margin
grew by 1.6% in the comparison between 1Q21 and
1Q20 due to the positive variation in earned
premiums and acquisition costs.
The loss ratio increased by 7.3 percentage points in
the comparison between 1Q21 and 1Q20, due to the
increase in claims. When the claims incurred due to
the COVID-19 pandemic are excluded, the claims
ratio decreased by 7.8 pp for the first quarter of 2021,
to 17.0%. In the comparison 1Q21 / 1Q20. For the
same period, the commissioning rate decreased by 1
percentage point, also reflecting the decrease in
acquisition costs and the increase in earned premiums.
4.1.5 Business
With specific products suited to the size of the company - individual microentrepreneurs, micro and small
and medium and large companies - Corporate insurance covers fire, lightning and explosion, electrical
damage, theft of assets, daily shutdowns, loss or payments rental for up to 6 months, mobile and
stationary equipment, expenses for restoring records and documents and breaking glass and illuminated
advertisements, in addition to 24-hour assistance.
14Earnings Release
1st quarter 2021
The table below presents a managerial view of the performance of the Corporate insurance industry:
R$ million 1Q21 1Q20 ∆% 4Q20: ∆%
Premium Issued 119.8 59.7 100.9% ● 17.4 590.5% ●
Changes in technical reserves for premiums -91.2 -20.9 337.1% ● 15.7 - ●
Earned Premiums 28.7 38.8 -26.1% ● 33.0 -13.1% ●
Claims occurred -9.2 -20.3 -54.6% ● -4.7 95.0% ●
Acquisition costs -6.6 -10.1 -34.8% ● -9.8 -32.8% ●
Other operating income and expenses -0.6 2.2 - ● -16.5 -96.4% ●
Operating margin 12.3 10.6 15.7% ● 2.0 505.8% ●
The sharp growth seen in the first
quarter of 2021 is a reflection of Caixa
Econômica Federal's property
insurance contracts, with annual
renewal in the first quarter of the year.
Even with the increase in the account
of technical variations in premiums
impacting earned premiums, the
branch's operating margin grew by
15.7% in the comparison between 1Q21/1Q20, demonstrating efficiency gains, based mainly on the
decrease in the number of claims.
The decrease in the volume of claims also impacts the loss ratio, which shows a drop of 20.2 percentage
points in the comparison between the first quarter of 2021 and the same period of 2020. In the
comparison of these same two periods, the commissioning rate decreased by 3.1 percentage points,
reflected by the improvement in acquisition costs.
4.1.6 Auto
Auto insurance is a contract by which the insurer covers the needs of the owner of a vehicle in the face
of losses that may occur, provided that according to the coverage and conditions established in the
policy. Within the new structure of Caixa Seguridade, the Auto insurance business will not migrate to the
joint venture, and future gains from the sale of the product will come from the brokerage fee.
15Earnings Release
1st quarter 2021
The table below shows a managerial view for the Auto branch:
R$ million 1Q21 1Q20 ∆% 4Q20: ∆%
Premium Issued 72.3 80.6 -10.3% ● 100.0 -27.7% ●
Changes in technical reserves for premiums 6.3 -3.6 - ● -21.5 - ●
Earned Premiums 78.6 77.0 2.1% ● 78.5 0.1% ●
Claims occurred -41.8 -51.2 -18.4% ● -53.2 -21.4% ●
Acquisition costs -9.0 -11.9 -24.1% ● -10.1 -11.3% ●
Other operating income and expenses -12.2 -13.1 -7.4% ● -19.3 -37.0% ●
Operating margin 15.6 0.8 1946.9% ● -4.1 - ●
Coupled with the fact that historically
the sale of Auto insurance is stronger
in the second half of the year, there is
a change in the product's consumer
profile in the search for leaner policies.
In the comparison between 1Q2021
and 1Q2020, the branch presented a
10.3% decrease in the amount of
premiums issued.
However, earned premiums showed a positive variation for the period as a result of changes in technical
provision for premiums, which, together with the decrease in claims incurred and acquisition costs,
contribute to an increase in operating margin.
The downward trend in claims occurred can be explained by the reverse effect caused by the pandemic
of COVID-19, which reduced movements in large centers and the commissioning rate reflects the
reduction in sales of new policies and the increase in renewals.
4.1.7 Personal accidents
Insurance modality with coverage related to the risk of accidents, with coverage such as death, partial
or total disability and medical expenses, provided that the claims are caused by an accident.
16Earnings Release
1st quarter 2021
The table below presents a managerial view of the performance of the Personal Accident insurance
industry:
R$ million 1Q21 1Q20 ∆% 4Q20: ∆%
Premium Issued 29.9 18.1 65.3% ● 33.9 -11.8% ●
Changes in technical reserves for premiums 1.5 -0.6 - ● -3.2 - ●
Earned Premiums 31.5 17.5 79.4% ● 30.7 2.4% ●
Claims occurred -2.5 -2.5 -1.4% ● -2.5 -1.6% ●
Acquisition costs -10.7 -6.0 79.2% ● -11.0 -3.2% ●
Other operating income and expenses -6.7 -3.4 100.9% ● -9.7 -30.7% ●
Operating margin 11.5 5.7 102.8% ● 7.4 55.3% ●
The Personal Accidents line showed a
65.3% growth in production in the
comparison between the first quarter of
2021 and the same period of 2020.
For the operating margin, the growth is
102.8% in the comparison 1Q21/1Q20,
influenced by the variation in the technical
provisions for premiums and the
maintenance of the volume of claims
occurred
Still in the analysis between 1Q21 and 1Q20, the loss ratio dropped sharply, reflecting the increase in
earned premiums and the behavior of retained claims. The stability of the index is due to the low
variability of commissioning in the product mix of this branch.
17Earnings Release
1st quarter 2021
4.2 Accumulation Business
4.2.1 Private Pension
Indicated for objectives to be achieved with a term of more than 3 or 5 years, private pension plans can
have monthly contributions or a single installment, and it is still possible to make additional
contributions. There are two types of private pension plan:
• PGBL for those who contribute with the INSS or other type of pension and make a complete
income tax (IR) declaration; and
• VGBL, indicated for those who do not declare income tax or declare income tax in a simplified
form.
For a better demonstration of the behavior of the indicators and the performance of the segment in the
results of Caixa Seguridade, the table below presents a managerial view, consolidating the collections
from the PGBL and VGBL modalities. For revenue purposes, contributions received from income and risk
are considered:
R$ million 1Q21 1Q20 ∆% 4Q20: ∆%
Revenue 7,409.3 5,235.1 41.5% ● 8,898.6 -16.7% ●
Variations in technical private pension
-7,369.5 -5,193.1 41.9% ● -8,820.8 -16.5% ●
provisions
Net Revenue 39.8 42.0 -5.4% ● 77.8 -48.9% ●
Claims incurred/benefit expenses -10.4 -12.6 -18.0% ● 0.1 - ●
Acquisition costs -69.4 -33.6 106.6% ● -45.5 52.5% ●
Other operating income and expenses 272.5 232.8 17.0% ● 253.0 7.7% ●
Operating margin 232.5 228.6 1.7% ● 285.4 -18.5% ●
The pension plan segment showed a 41.5%
growth in collections in the comparison
between the first quarter of 2021 and the
same period of 2020. The positive result that
has been presented since 3Q20 is due, in
addition to the promotion of Sales Incentive
Campaigns in the CAIXA chain, to Caixa
Seguridade's performance in the constant
search for qualification in a segment that
requires great specialization, with the realization of training distance learning and promoting the training
of digital managers and the private segment. Such efforts are added to the population's growing
awareness of the need for a private pension plan in addition to public pension.
The number of claims incurred and benefit expenses decrease by 18.0% compared to 1Q21/1Q20. When
the claims caused by the COVID-19 pandemic are disregarded, the figures recorded for the first quarter
of 2021 decrease by 29.6%.
18Earnings Release
1st quarter 2021
The operating margin showed a growth of 1.7% in
the comparison between 2021 and the first quarter
of 2020, affected by the variations in technical
provisions and the increase in acquisition costs,
which grew proportionally more than the collection,
raising the commissioning rate to the first period of
2021.
The management fee received in the first quarter of
2021 was 15.1% higher than in the same period in
2020. In relation to 4Q20, the increase observed was
7.2%.
The total of Reserves in the first quarter of 2021
represents a growth of 22.4% in relation to the first
quarter of 2020 and a growth of 3.9% in relation to
the fourth quarter of 2020. Proportionally, the
increase in the amount of redemptions was lower
than that of reserves in the 1Q21/1Q20 comparison,
representing a decrease of 0.4 percentage points in
the Redemption Index.
4.2.2 Credit Letter
The Credit Letter is a typically Brazilian financial product that works as a collective purchase modality,
where a group of people undertakes to pay a monthly installment, for a specified period. This money is
kept in a common fund and, every month, some members of the group are chosen (by lot and bid) to
receive the credit amount and buy the good.
The table below shows a managerial view of the segment:
R$ million 1Q21 1Q20 ∆% 4Q20: ∆%
Resources Collected with Credit Letters 783.7 777.7 0.8% ● 831.3 -5.7% ●
Revenue from the operation 154.3 149.7 3.1% ● 158.3 -2.5% ●
Operation/Expenses costs -86.5 -92.3 -6,3% ● -88.9 -2.7% ●
Operating margin 67.9 57.4 18.3% ● 69.4 -2.2% ●
19Earnings Release
1st quarter 2021
The funds collected from the Credit Letters segment
increased by 0.8% in the comparison between the first
quarter of 2021 and the same period of 2020. The
operating margin of the segment grew by 18.3% for
the same period, with the decrease in the costs and
expenses of the operation and the increase in the
operation's revenue.
The management fee for the Credit Letter segment
increased by 0.7% in the first quarter of 2021
compared to the same period in 2020. The
proportional increase between the resources
collected and the amounts received with the
administration fee, kept the average administration
fee at 16.6% in the comparison between the two
periods.
Credit cards sold decreased by 13.2% in the
comparison between 1Q21 and 1Q20. In relation to
4Q20, the first quarter of 2021 shows an increase of
38.0% for vehicle credit letters and a reduction of
0.4% in relation to real estate.
4.2.3 Premium Bonds [Capitalização]
Unlike other financial products, the capitalization bond does not fall into the category of investments, as
it consists of a way of saving money - single or monthly payment, for a certain period - exchanging the
profitability of an investment for the chance to be included in cash prizes sweepstakes.
20Earnings Release
1st quarter 2021
Below we present a managerial view of the Credit Letter segment:
R$ million 1Q21 1Q20 ∆% 4Q20: ∆%
Collection of Premium bonds 305.6 382.6 -20.1% ● 324.5 -5.8% ●
Change in the provision for redemption / Change in
-262.9 -312.7 -15.9% ● -272.9 -3.7% ●
technical provisions
Net income from premium bonds 42.8 69.9 -38.8% ● 51.6 -17.1% ●
Result with sweepstake -8.9 -17.5 -49.1% ● -14.8 -39.9% ●
Acquisition costs -14.1 -32.8 -57.0% ● -16.8 -15.9% ●
Other operating income and expenses 9.5 3.4 175.2% ● 5.6 68.4% ●
OPERATING MARGIN 29.2 23.0 26.9% ● 25.7 14.0% ●
The collection of the Premium Bonds segment
continues to be affected by the restrictive
measures of the pandemic of COVID-19,
showing a decreasing curve since the beginning
of 2020. In the comparison between the first
quarter of 2021 and the same period of 2020,
the collection reduction is 20.1%. The decrease
in collection is more concentrated in the single
payment category, with a decrease of 58.4%
between periods.
For the same period, the operating margin increased by 26.9%, due to the positive percentage changes
in the result with sweepstakes, acquisition costs and other operating income and expenses.
The drop in acquisition cost figures is reflected in the commissioning rate, which decreased by 17
percentage points in the comparison between the first quarter of 2021 and the first quarter of 2020.
The management fee for the Premium Bonds
segment in the first quarter of 2021 decreased by
41.1% compared to the same period in 2020. The
average rate decreased by 4 percentage points in
relation to the same intervals and 1.9 percentage
points in relation to 1Q21/4Q20.
21Earnings Release
1st quarter 2021
Reserves increased by 8.0% in relation to 1Q21 and
1Q20 and 1.1% in comparison to 1Q21/4Q20.
22Earnings Release
1st quarter 2021
5. Participations and Businesses
Due to the implementation of the new partnership structure and the beginning of the operationalization
of the new association agreements, the results of Caixa Seguridade's interests and businesses will be
presented in this item in a grouped manner and proportional to its economic participation, thus
maintaining the comparability of the results with previous periods.
The first group includes Caixa Seguridade holdings inherent to the CAIXA Partnerships and this group
includes: (i) the policies issued by the New Partnerships; (ii) indirect participations and policies issued
under the Old Partnership.
For 2020, this group considers the results of Caixa Seguros Holding (CSH), a partner that operated
exclusively in the distribution network until the end of 2020.
The second group is formed by Caixa Seguridade's participation in Too Seguros and Pan Corretora, which
are part of the Banco PAN Partnership, the same configuration existing in 2020.
The third grouping comprises Caixa Seguridade's Distribution Business, including the result of Caixa
Corretora, the insurance broker of the new partnerships, and the revenue from access to the distribution
network and use of the CAIXA (BDF) brand, revenue from the products in question. run-off and the
products still emitted by the old partnership.
In this group, the 2020 result considers only BDF, the only distribution revenue directed to Caixa
Seguridade in the old partnership.
23Earnings Release
1st quarter 2021
The fourth and last grouping, Holding Seguridade, highlights the resources used to maintain Caixa
Seguridade's administrative and strategic structure, the same premise adopted in previous years.
Grouping of Caixa Seguridade's Holdings and Businesses
The following table consolidates the main lines of the financial statements of the groupings described
above, already considering the economic participation attributed to Caixa Seguridade. In item 5.1 below,
we provide the same DRE lines for all companies in a separate and integral way.
R$ million Banco PAN Holding
Partnersh Distribution Caixa
Partnershi Seguridad 1T21/1T20 1T21/4T20
1st TRI 2021 ips Business Seguridade
p e
Operating margin 470.6 43.0 193.2 - 706.7 5.6% ● -10.8% ●
Administrative costs -170.5 -9.6 -0.4 -13.1 -193.7 80.4% ● 29.0% ●
Tax Expenses -60.3 -2.7 -20.8 -0.3 -84.0 20.3% ● 3.9% ●
Financial result 267.6 3.1 0.1 -0.2 270.5 25.0% ● 19.2% ●
Equity result 6.5 0.0 - - 6.5 46.2% ● 177.4% ●
Other operating
- -6.8 - - -6.8 -77.3% ● -78.3% ●
income/expenses
Operating profit 513.9 27.0 172.0 -13.7 699.2 2.4% ● -6.5% ●
Gains or losses on non-
0.1 1.4 - - 1.5 112.0% ● 102.8% ●
current assets
Profit before tax and
514.0 28.4 172.0 -13.7 700.7 4.5% ● 1.0% ●
participations
Income tax -127.6 -5.4 -39.6 -0.7 -173.3 4.2% ● 11.2% ●
Social contribution -76.2 -3.1 -14.3 -0.3 -93.9 4.4% ● 17.6% ●
Profit Sharing -0.5 -1.7 - - -2.3 41.1% ● -12.7% ●
Net income for the
309.6 18.2 118.1 -14.6 431.3 4.5% ● -5.3% ●
period
Attributable to Caixa
309.2 18.2 118.1 -14.6 430.9 4.4% ● -5.4% ●
Seguridade
(+) Reversal of
consolidation 0.8 - - - 0.8 -41.3% ● 139.8% ●
adjustment
Adjusted net income 310.0 18.2 118.1 -14.6 431.7 4.3% ● -4.8% ●
** Proportional to Caixa Seguridade's participation
The first quarter of 2021 marks the beginning of the implementation of Caixa Seguridade's new business
model, with a new shareholding structure and new brokerage dynamics. Even if it results in an increase
in shareholdings and higher levels of commissioning for Caixa Seguridade's own brokerage, the gains
inherent to the new business model are not immediate and will be gradually added to the Company's
results as the transition period ends and as the transition period ends and as long as the stocks of new
companies' portfolios become relevant.
24Earnings Release
1st quarter 2021
As the holdings and businesses are grouped,
the operating margin that would be
attributed to Caixa Seguridade would total
R$ 706.7 million in the first quarter, an
increase of 5.6% in relation to the same
period of the previous year and 10.8% less
than the immediately preceding quarter.
The participation of the CAIXA Partners
group was higher in this quarter compared to
the first and last quarter of 2020, the effect
of the greater economic participation in the
new partnerships.
From this quarter and at least until the end of the year, in addition to the normal events that usually
explain the evolution of the results of the subsidiaries and Caixa Seguridade businesses, we will have
events related to the transition of the new business model that change the evaluation of the results,
such as the new percentage of economic participation and the new dynamics of the distribution business.
New percentages of economic participation
The new percentages of economic participation represented, in this quarter, in isolation, a little more
than 11% increase in the net result destined to Caixa Seguridade by the companies of the group CAIXA
partnerships and this effect is basically the result of life, credit life and pension operations. given that all
contracts for the inventory of these products have already started the year reflecting the new economic
distribution (from 48.25% to 60%), according to the agreement signed.
In the case of home and home insurance, now sold by the partnership formed with Tokio Marine, the
operation went through a pilot stage and it was only on February 15 that the new company started to
issue all the policies of these two branches. In addition, the policy portfolio of this new partnership starts
out of stock and the effect of the new participation (from 48.25% to 75%) will only bring relevant results
as the stock is formed and the issuance of premiums grows.
Assistance services also started operating this quarter and, until the end of March, were operational for
B2B products negotiated with group companies, but in a volume that is not very relevant to the total
result. The new agreements signed for Premium Bonds, with Icatu, and for Premium Bonds, with CNP
Assurances, were signed at the end of March and during the first quarter the products of these segments
were still sold by the companies of the old partnership.
New levels of commissioning
25Earnings Release
1st quarter 2021
CAIXA broker also started its activities in this quarter, and became responsible for the brokerage of
products sold under the new agreements. Although the new structure provides for an increase in the
commission paid by partners for certain branches and an increase in the participation of the own broker
in the distribution of all commission, these new parameters have not yet impacted the brokerage
revenue received. In this sense, the evolution of the operating margin of the Distribution Business group
was basically due to the result of commercial performance.
The new levels of commissioning have not yet resulted in greater revenue for Caixa Seguridade,
especially due to the maintenance of the commissioning division with Wiz due to the amendment signed
with the brokerage firm that established a transition period, between February 15th and August 15th,
2021, for its definitive exit from the operation in the CAIXA distribution network. In this transition period,
the commissioning directed to Wiz will be decreasing, reaching 50% of the amount originally paid, with
the exception of mortgage insurance, which since February 16th has not paid commissioning for Wiz.
General and Administrative expenses
General and administrative expenses are included in addition to administrative expenses, tax expenses
and other operating expenses.
The general and administrative
expenses index, which establishes the
relationship between these expenses
and the operating margin for each
period, showed growth in the last 2
quarters of the assessment, and is
related in particular to the growth in
administrative expenses associated with
the process of implementing the new
partnerships and structuring of new
operations.
Administrative expenses grew 80.4% in 1Q21. compared to 1Q20, and 29.0% compared to 4Q20. The
increase in this expense was concentrated in the grouping of CAIXA Partnerships and was due to the
costs associated with the process of implementing the new agreements.
R$ million 1Q21 1Q20 ∆% 4Q20: ∆%
Administrative costs -193.7 -107.4 80.4% ● -150.2 29.0% ●
CAIXA Partnerships -170.5 -80.0 113.2% ● -123.5 38.1% ●
Banco PAN Partnership -9.6 -10.6 -9.3% ● -13.5 -28.9% ●
Distribution Business -0.4 - - - -
Holding Expenditures -13.1 -16.8 -21.7% ● -13.2 -0.4% ●
26Earnings Release
1st quarter 2021
Financial Result
Added the effect of the new participations, that is, comparing the financial result in the proportion due
to Caixa Seguridade in each of the analyzed periods, 1Q21 represented an increase of 25.0% in
comparison with 1Q20, and 19.2% greater than the 4Q20. Growth concentrated in the companies of the
CAIXA Partnerships, especially in Caixa Vida & Previdência.
In this quarter, the ratio between financial results and operating results was 30% and 70%, respectively.
Operating income is considered to be the operating margin discounted from tax expenses.
R$ million 1Q21 1Q20 ∆% 4Q20: ∆%
Financial Result 270.5 216.4 25.0% ● 227.0 19.2% ●
CAIXA Partnerships 267.6 216.5 23.6% ● 213.8 25.2% ●
Banco PAN Partnership 3.1 -4.7 165.3% ● 7.1 -56.5% ●
Distribution Business 0.1 - - ● 0.1 3.4% ●
Holding Expenditures -0.2 4.6 -105.2% ● 6.0 -104.0% ●
Net income
In the composition of the net result, the results generated by the companies of CAIXA Partnerships
represent on average 70% of the total. Distribution businesses represent, on average, 28% of net income,
with a tendency to increase this share as the new brokerage model is fully implemented. The result of
each group in each period is shown in the graph below:
27Earnings Release
1st quarter 2021
5.1 Profit and loss account, participations and businesses
Old
Grouping New Partnerships % Change
Partnership CAIXA
CNP Seguros XS3 XS4 XS6 Partnershi
R$ million Holding 1Q21/4Q2
Holding Residencial Capitalização Assistência ps 1Q21/1Q20
XS1 S.A. 0
1st quarter of 2021 Brasil S.A. S.A. S.A. S.A.
Operating margin 526.0 371.1 1.2 - 0.1 898.5 -0.4% ● -11.2% ●
Administrative costs -133.6 -107.9 -58.4 0.0 -0.4 -300.4 75.6% ● 13.8% ●
Tax Expenses -55.9 -56.2 -0.2 0.0 - -112.4 0.4% ● -2.3% ●
Financial result 119.1 369.2 0.1 0.1 0.1 488.5 4.4% ● 5.9% ●
Equity result 13.5 - - - - 13.5 46.1% ● 177.3% ●
Operating profit 469.0 576.1 -57.3 0.1 -0.3 987.6 -9.9% ● -8.2% ●
Gains or losses on non-
0.2 0.1 - - - 0.2 100.9% ● 100.2% ●
current assets
Profit before tax and
469.2 576.2 -57.3 0.1 -0.3 987.9 -7.7% ● 2.5% ●
participations
Income tax -115.4 -144.2 14.4 0.0 0.1 -245.1 -6.8% ● 17.2% ●
Social contribution -68.6 -86.5 8.7 0.0 0.0 -146.4 -6.6% ● 17.2% ●
Profit Sharing - - -0.7 - - -0.7 - ● - ●
Net income for the period 285.2 345.4 -34.9 0.0 -0.2 595.7 -8.4% ● -5.4% ●
(+) Reversal of
1.6 - - - - 1.6 -41.3% ● 139.8% ●
consolidation adjustment
Adjusted net income 267.3 345.4 -34.9 0.0 -0.2 577.8 -9.6% ● -5.7% ●
Caixa Seguridade
48.3% 60.0% 75.0% 75.0% 75.0%
Shareholding
Attributable to Caixa
129.0 207.3 -26.1 0.0 -0.1 310.0 0.6% ● 4.9% ●
Seguridade
R$ million Banco PAN
Too Seguros PAN Corretora 1Q21/1Q20 1Q21/4Q20
1st quarter of 2021 Partnership
Operating margin 70.2 17.6 87.8 -35.5% ● -40.1% ●
Administrative costs -18.2 -1.4 -19.6 -9.3% ● -28.9% ●
Tax Expenses -5.4 0.0 -5.4 -10.3% ● -8.4% ●
Financial result 6.0 0.3 6.3 165.3% ● -56.5% ●
Equity result 0.0 - 0.0 - ● - ●
Other operating income/expenses -13.9 - -13.9 -77.3% ● -78.3% ●
Operating profit 38.6 16.5 55.1 46.4% ● -13.2% ●
Gains or losses on non-current assets 2.9 - 2.9 - ● 28570.0% ●
Profit before tax and participations 41.5 16.5 58.0 54.1% ● -8.7% ●
Income tax -9.5 -1.6 -11.0 58.7% ● 71.8% ●
Social contribution -5.8 -0.6 -6.3 59.2% ● 94.6% ●
Profit Sharing -3.6 - -3.6 9.5% ● 9.4% ●
28Earnings Release
1st quarter 2021
Net income for the period 22.7 14.4 37.1 58.0% ● -26.7% ●
(+) Reversal of consolidation adjustment - - - - ● - ●
Adjusted net income 22.7 14.4 37.1 58.0% ● -26.7% ●
Caixa Seguridade Shareholding 0.5 0.5
Attributable to Caixa Seguridade 11.1 7.0 18.2 58.0% ● -26.7% ●
R$ million Distribution
CAIXA Broker BDF 1Q21/1Q20 1Q21/4Q20
1st quarter of 2021 Business
Operating margin 114.3 78.9 193.2 11.6% ● -18.8% ●
Administrative costs -0.4 - -0.4 - ● - ●
Tax Expenses -13.5 -7.3 -20.8 56.3% ● -8.9% ●
Financial result 0.1 - 0.1 - ● 3.4% ●
Equity result - - - - ● - ●
Other operating income/expenses - - - - ● - ●
Operating profit 100.4 71.6 172.0 7.7% ● -20.0% ●
Gains or losses on non-current assets - - - - ● - ●
Profit before tax and participations 100.4 71.6 172.0 7.7% ● -20.0% ●
Income tax -25.1 -14.5 -39.6 4.7% ● -25.5% ●
Social contribution -9.0 -5.2 -14.3 4.7% ● -25.5% ●
Profit Sharing - - - - ● - ●
Net income for the period 66.3 51.8 118.1 9.0% ● -17.2% ●
(+) Reversal of consolidation adjustment - - ● - ●
Adjusted net income 66.3 51.8 118.1 9.0% ● -17.2% ●
Caixa Seguridade Shareholding 1.0 1.0
Attributable to Caixa Seguridade 66.3 51.8 118.1 9.0% ● -17.2% ●
5.2 Structure
Caixa Seguridade is a control holding company that operates in a diversified manner, through its affiliates
and jointly controlled companies, in insurance products, open supplementary private pension plans,
premium bonds, credit letters management and assistance services and, through of its own brokerage,
in the insurance brokerage business:
• Insurance: segment comprising the categories of life (life and personal accident insurance, coverage of
housing insurance for death and permanent disability and credit life insurance) and property
(automobiles, mortgage, the portion of coverage of housing insurance for physical damage to the
property , comprehensive business insurance and engineering risks, among others);
• Open Supplementary Private Pension: segment that covers a product line in the PGBL (Free Benefit
Generating Plan) and VGBL (Free Benefit Generating Life) modalities, pension plans that allow the
29Earnings Release
1st quarter 2021
accumulation of funds for a contracted term, differing according to the tax model chosen and available
to individuals and companies;
• Premium Bonds;
• Credit Letter;
• Assistance: assistance services sold directly to CAIXA customers or as benefits coupled with policies sold
by group companies; and
• Brokerage: brokerage service in the sales process of security products carried out in the CAIXA
Distribution Network.
Until the end of 2020, Caixa Seguridade was formed by Caixa Seguros Holding (CSH) - vehicle of the 20-
year partnership between CAIXA and the French CNP Assurances (CNP) - and their interests, exploring
the security businesses in the Bancassurance Channel of CAIXA, and Caixa Holding Securitária,
maintaining the stakes that explore Banco Pan's Bancassurance Channel.
Through the implementation of the new association agreements, the value of the Company was
maximized through the increase of economic participation in the businesses and the higher level of
commissioning with the creation of its own brokerage, in addition to the expansion of the offer of
insurance products with the Caixa brand.
The quarter was marked by several implementations and decisions related to the structuring of the new
business model:
• 01/04/2021 - Conclusion of the operation and implementation of the agreement with Tokio Marine (XS3
Seguros SA), for the formation of a new company that will have exclusivity, for a period of 20 years, in
the sale of Mortgage and Homeowner insurance in the distribution of Caixa Econômica Federal
(“CAIXA”), with the subscription by Tokio Marine of a capital increase in XS3 in the total amount of R$
1.52 billion, paid to CAIXA;
• 01/05/2021 - Conclusion of the operation and implementation of the agreement with Tempo Assist (XS6
Assistência SA), for the formation of a new company that will have exclusivity, for, for a period of 20
years, in the sale of insurance for Assistance Services in CAIXA's distribution network, with the
subscription by Tempo Assist of a capital increase in XS6 in the total amount of R$ 30 million, paid to
CAIXA and forecast of further increases in the amount of up to R$ 40 million, if certain performance
targets are achieved by XS6 in up to three years;
• 02/03/2021 - Transition Period Agreement with WIZ, within 6 months, for the transfer of brokerage
activities carried out by Wiz in the CAIXA Distribution Network to Caixa Seguridade's own brokerage and
to the co-brokers selected in the competitive process;
• 02/12/2021 - Completion of the Co-brokerage Competitive Process, selecting the companies MDS
Corretora and Administradora de Seguros S.A., for the Insurance and Automobile Products blocks; Alper
Consultoria e Corretora de Seguros S.A., for the Saúde e Odonto block; and Willis Affinity Corretores de
Seguros Ltda., for the Major Risks and Corporate block;
30Earnings Release
1st quarter 2021
• 03/30/2021 - Conclusion of the operation and implementation of the agreement with Icatu (XS4
Capitalização SA), for the formation of a new company that will have exclusivity, for a period of 20 years,
in the sale of Capitalization products in the distribution network of Caixa on the sale of capitalization
products in Caixa's distribution network, with Icatu's subscription to a capital increase in XS4 in the total
amount of R$ 180 million, paid to CAIXA;
• 03/30/2021 - Conclusion of the operation and implementation of the agreement with CNP, for the
formation of a new company that will have exclusivity, for a period of 20 years, in the sale of Credit Letter
products in the network distribution of CAIXA, with subscription by CNP of a capital increase in XS5 in
the total amount of R$ 250 million, paid to CAIXA.
In the new structure, the new partnerships start to operate the businesses within CAIXA's Bancassurance
Channel, –and CSH loses the right to use the distribution network and the CAIXA brand and changes its
name to CNP Seguros Holding Brasil SA, managing the results run-off portfolio.
The details of the businesses in each operating block are presented below:
CAIXA Bancassurance Channel
I. Holding XS1 is the result of the agreement between Caixa Seguridade and CNP to explore the life
insurance and credit life lines and supplementary private pension products in the CAIXA Distribution
Network, where Caixa Seguridade holds 60% of the total capital and CNP 40%;
II. CAIXA Residencial (XS3 Seguros S.A.) is the company created for the agreement with Tokio Marine
for the exploration of the mortgage and homeowner insurance lines, in which Caixa Seguridade
holds 75% of the total capital and Tokio Marine the remaining 25%;
III. CAIXA Capitalização (XS4 Capitalização S.A.) is a company created to operate the capitalization
segment in the CAIXA Distribution Network in partnership with Icatu Seguros, which holds 25% of
the capital;
IV. CAIXA Consórcio (XS5 Administradora de Consórcios S.A) is the result of the Caixa Seguridade
agreement (75% of the capital) and CNP (25% of the capital) for the exclusive exploration of the
credit letter segment in the CAIXA Distribution Network;
V. CAIXA Assistência (XS6 Assistência S.A.) is the result of a partnership with Tempo Assist for the
exploration of the branch of assistance services in the Distribution Network of CAIXA, with a 75%
stake in Caixa Seguridade and 25% in Tempo Assist;
VI. CAIXA Corretora is responsible for brokerage services in the process of selling the products of the
new partnerships in the CAIXA Distribution Network. In addition to absorbing the brokerage revenue
that will flow from the new holdings, it will work together with new partners (selected through a
competitive process) to meet the needs of CAIXA customers by selling insurance products that are
31Earnings Release
1st quarter 2021
not strategically offered by the new partnerships of the Company. This model considers the
formation of 4 distinct blocks for the realization of certain co-brokerage services aimed at the
business lines and branches listed below:
Insurance Products: partnership with the MDS Group with a focus on customer retention and on
the open sea sale of insurance products under the CAIXA brand;
Automobile: partnership with the MDS Group that will offer auto insurance options to independent
insurance companies from CAIXA customers;
Health and Dental: partnership with Alper Consultoria em Seguros, which will bring options for
health insurance plans and dental insurance plans for CAIXA clients; and
Major Risks and Corporate: partnership with Willis Towers Watson to offer Comprehensive Business
insurance and will act as a broker for the sale of Customized Corporate and Major Risks insurance.
Currently, the brokerage activities carried out by Wiz Soluções e Corretagem de Seguros SA (“Wiz”)
are in the process of transferring the selected co-brokers to Caixa Seguridade's own brokerage, with
completion expected on August 15, 2021, as Material Fact disclosed on December 23, 2020.
Run-off portfolio
I. With the end of CSH's exclusivity and the implementation of new partnerships for the exploration
of security products in the CAIXA Distribution Network, CSH is renamed CNP Seguros Brasil (“CNP
Brasil”) and will continue to operate the portfolio run-off existing in February 2021, with the
exception of the run-off of life, credit life and pension products that migrated to the new partnership
signed between CAIXA Seguridade and CNP; and
II. Revenue from access to the distribution network and use of the brand: despite the new partnerships
and the new operating model of Corretora CAIXA, the Company will continue to receive this revenue
from run-off products.
Banco Pan Bancassurance Channel
Additionally, the Company explores Banco PAN's distribution channels through its 48.99% stake in Too
Seguros and 49% in PAN Corretora de Seguros Ltda. Banco PAN and Too Seguros have a commercial
relationship and the rights and obligations of the parties in relation to the promotion, offer, distribution,
disclosure and commercialization, in Banco PAN's distribution network, of Too Seguros products, on an
exclusive basis.
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