Documents and Announcements

Information to the Market – Related Parties Transaction (ICVM 480, Appendix 30-XXXIII)

Pursuant to the Brazilian Securities and Exchange Comission (“CVM”) Rule Nr. 480/09 (Appendix 30-XXXIII), BB SEGURIDADE PARTICIPAÇÕES S.A. (“BB Seguridade” or “Company”) hereby informs that on December 31st, 2018 it was established the following related parties transaction:
 
Transaction description Distribution of the new premium bonds portfolio (“Ourocap”) in Banco do Brasil’s bancassurance channel (“BB Channel”), with the possibility of distribution by other companies defined by Brasilcap Capitalização S.A., upon signature of “Specific Operational Agreements for Distribution of the Ourocap Monthly (PM36, PM48 and PM60) and Unique Payment Premium Bonds (PU36)” (“Specific Agreements”).
 
Related parties names BB Corretora de Seguros e Administradora de Bens S.A. (“BB Corretora”), Banco do Brasil S.A. (“BB”), and Brasilcap Capitalização S.A. (“Brasilcap”)
 
Relation between the parties and the Company BB – Controlling shareholder
BB Corretora – Controlled company
Brasilcap – Affiliated company
 
Agreement object To set the rights and duties of the parties related to the distribution, on BB Channel, through BB Corretora and with the possibility of distribution by other companies, defined by Brasilcap, of Ourocap Monthly (PM36, PM48 e PM60) and Unique (PU36) Premium Bonds.
 
Terms and conditions of the agreement The Specific Agreements are part of a major agreement named “General Operational Agreement for Distribution of Products and Provision of Services” (“Operational Agreement”), which was signed on July 14th, 1999, and establishes that Brasilcap must pay to BB Corretora a percentage of the premium bonds collection as a commission for selling the products in BB Channel, with or without the distribution by other companies defined by Brasilcap.
 
BB is responsible for receiving the premium bonds collection paid by the clients and then transfer it to Brasilcap, net of BB Corretora’s commission fee. For this banking service, BB is remunerated by Brasilcap through the payment for banking services.
 
The Specific Agreements will be in force from the date of their signature and will last as long as the duration of the premium bonds which are object of the agreement.
 
 
Participation of the Counterparty or its Shareholders and Management during the Company’s decision process
 
The counterparty did not participate of BB Seguridade’s decision and did not act as its representative during the transaction negotiation.
 
Justification of the reasons for which the issuer´s management deems the transaction to have been conducted on the basis of arm´s-length conditions or provides for adequate compensatory payment All the general conditions of the premium bonds portfolio and the Specific Agreements were analyzed and validated by BB Seguridade, BB Corretora and Brasilcap’s technical divisions and then approved by BB Seguridade’s Executive Board and Related Parties Transactions Commitee as provided in the Company’s Related Party Transactions Policy.
 
 

Brasilia, January 07th, 2019
 

Werner Romera Süffert
CFO