Brazil's BB Seguridade aims for single-digit profit growth in 2017

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Tuesday, February 14, 2017

BB Seguridade, the insurance holding of Banco do Brasil and one of the country's largest insurers, expects this year to register earnings growth in the single digits.

According to the 2017 guidance provide by the insurer, recurring net income will increase between 1% and 5%.

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BB Seguridade's 2016 recurring net income totaled 4.10bn reais (US$1.32bn), a 4.1% increase over the previous year. The company's recurring net profit for 4Q16 was up 6% over the same period in 2015, reaching 1.08bn reais.

BB Seguridade and other insurance companies are facing a great challenge of growing business volume and profits amid Brazil's deep recession.

Reuters reported chief executive José Mauricio Coelho as saying the insurer believes it could grow premiums faster than rivals this year and that it could benefit from a decrease in auto insurance claims.

Spanish insurance giant Mapfre is a key partner for Banco do Brasil through units providing life, housing, rural and property insurance coverage. Those two units form part of BB Seguros, which is a subsidiary of BB Seguridade.

The BB Seguridade holding also includes dental insurance, private pension and savings bond companies.