BB Seguridade (BBSE3) could see earnings fall tomorrow, analysts say. “Best in history” – Money Times

Hey BP Security (BBSE3) could achieve the largest profit in its history, according to Nice investments. Broker sees insurance arm of Bank of Brazil (BBAS3) Profit of R$2.05 billion, an increase of 24.3% compared to last year.

Its results are scheduled to be announced next Monday (6). genius He argues that so far, the July data made available Private Insurance Supervision Authority (SOSIP) Already indicate good performance of B This quarter.

“To improve, the fourth quarter is generally the strongest of the year, suggesting we will end 2023 with strong results,” he explains.

See what analysts expect:

*Consensus compiled by Bloomberg

In Genial’s view, financial results will continue to be strong across all sectors, driven by the high level of interest rates.

“At the moment, we still do not expect the recent cut in Selec to be significant enough to negatively impact the line, in addition to the mismatch between IPCA that it IGBM It should continue to benefit the retirement unit positively.

Furthermore, unit premiums should continue to expand, driven mainly by rural and credit life insurance and loss ratios at attractive levels.

“The pension unit should benefit from gross and therefore net financing as well. The capital should continue to be well funded due to attractive interest rates. Finally, the brokerage company should benefit from transfers from other units.

• BBSE3 has a history of ‘fat’ earnings, but is it still worth investing in? Find it here

Safra and BTG are also seeing profits for BB Seguridade

Hey crop BB Seguridade also performed well in the quarter, characterized by a strong acceleration in outgoing premiums generated by Plano Safra as well as social security contributions, added to controlled claims and without decoupling inflation from the effects on financial results.

The company is expected to once again report strong numbers, with a profit of R$1.983 billion (up 7.7% in the quarter, and 20% in the year), 2.4% higher than expected.

to BTGthe company reported strong results in July and August, mainly due to BrasilPrev’s strong financial performance, indicating a profit of R$ 2.05 billion in the third quarter (+11% qoq, +24% y/y), 5% above our consensus estimate.

“Trading at a 2024 P/S of 7.8x (11% dividend yield), we reiterate our buy recommendation,” he says.