|Transaction description||Payment of additional commissions by Companhia de Seguros Aliança do Brasil S.A. to BB Corretora de Seguros e Administradora de Bens S.A. for the distribution of Credit Life and Credit Life for Farmers insurance products in Banco do Brasil’s distribution channel, in accordance with the 2nd Amendment of the Operational Agreement to Act in the Insurance Segment and its appendixes (“Operational Agreement” or “Agreement”).
|Related parties names||BB Corretora de Seguros e Administradora de Bens S.A. (“BB Corretora”) and Companhia de Seguros Aliança do Brasil S.A. (“Aliança do Brasil”).
|Relation between the parties and the Company||BB Corretora – Controlled company
Aliança do Brasil – Affiliated company
|Object, terms and conditions||The agreement sets, among other provisions, the establishment of minimum parameters related to the sales volume of Credit Life and Credit Life for Farmers insurance products commercialized within Banco do Brasil distribution channel.
In case the sales volume, at the end of each fiscal year, overcomes the minimum established in the Agreement, Aliança do Brasil must pay an additional commission to BB Corretora.
The assessment will occur at the end of every fiscal year, starting on December 31st, 2018.
|Participation of the Counterparty or its Shareholders and Management during the Company’s decision process
||The counterparty, as BB Seguridade’s affiliated company responsible for the development of credit life and credit life for farmers insurances sold in the bancassurance channel, participated in the discussions that led to the parameters chosen to calculate the additional commission to BB Corretora, considering the economic and operating aspects involved.
However, the counterparty did not participate of the BB Seguridade’s final decision, which was taken by the decision-making bodies of the Company and its controlled entities.
|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 compensation||All the conditions were analyzed and validated by BB Seguridade, BB Corretora and Aliança do Brasil’s technical divisions and then approved by BB Seguridade’s Board of Directors and appreciated by the Related Parties Transactions Commitee as provided in the Company’s Related Parties Transactions Policy.
The Company would not be able to conduct the transaction with a third party other than Aliança do Brasil since the Operational Agreement provides exclusivity between the parties to develop and to distribute insurance products at Banco do Brasil distribution channel.