Material Fact - Signature of non-binding MoU for restructuring the joint venture with MAPFRE
Pursuant to Paragraph 4 of Article 157 of Federal Law 6,404, dated December 15th
, 1976, and according to CVM (Brazilian Securities and Exchange Commission) Rule 358 (“CVM 358”), dated January 3rd
, 2002, BB Seguridade Participações S.A. (“BB Seguridade”) hereby informs that it has signed, jointly with its wholly owned subsidiary BB Seguros Participações S.A. (“BB Seguros”) and its controlling shareholder Banco do Brasil S.A. (“BB”, and jointly with BB Seguridade and BB Seguros named “BB Seguridade Group”), a non-binding Memorandum of Understanding (“MoU”) with MAPFRE S.A., MAPFRE Internacional S.A. and MAPFRE Brasil Participações S.A. (jointly named “MAPFRE Group”) which establishes the assumptions that will guide the Final Agreements aiming to a corporate and operational restructuring of the current joint-venture between BB Seguridade Group and MAPFRE Group named BB MAPFRE Insurance Group, seeking the following structure:
- insurance segments jointly underwritten by BB Seguridade and MAPFRE Group (“New BB MAPFRE Insurance Group”):
- BB bancassurance channel: term life, credit life, rural, mortgage life, home, corporate, standard and DPVAT; and
- affinity channel: the aforementioned insurance segments can also be distributed afterwards by the New BB MAPFRE Insurance Group through the affinity channel, if previously agreed between Grupo BB Seguridade and Grupo MAPFRE, except if the affinity channel is an affiliate company of BB (“Affliates BB”), in this case no prior approval is needed.
- insurance segments underwritten by MAPFRE Group standalone:
- independent broker and affinity channels: term life, credit life, crop, auto, large risks, home, corporate and DPVAT; and
- BB bancassurance channel and Affiliates BB: auto and large risks.
MAPFRE Group will remain with captive access to distribute auto and large risks insurance products at BB bancassurance channel, under certain conditions still to be set.
The operational restructuring of BB MAPFRE Insurance Group is aligned with the BB Seguridade Group’s strategy to simplify the governance and management of its investees. This strategy seeks to increase the focus on the distribution of insurance products at the bancassurance channel, in order to improve the services provided to BB’s clients and maximize the value to shareholders.
The destination of any free capital after the restructuring will be decided later on.
Further material information will promptly be released to the market.
Brasilia, February 6th
Werner Romera Süffert