Documents and Announcements

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


BB SEGURIDADE PARTICIPAÇÕES S.A. (“BB Seguridade” or “Company”) hereby informs that the following related parties transaction reached on September 29th, 2017 the amount established on the Brazilian Securities and Exchange Comission (“CVM”) Rule Nr. 480/09 (Appendix 30-XXXIII, article 1, subsection I, item a):
 
Transaction description Temporary increase of commissions paid by Companhia de Seguros Aliança do Brasil (“Aliança da Brasil”) to BB Corretora de Seguros e Administradora de Bens S.A. (“BB Corretora”) for the distribution of some life insurance in Banco do Brasil’s bancassurance channel. The commission rates are set on the Operational Agreement for Insurance Distribution (“Operational Agreement”) which were signed on November 30th, 2011 by BB Corretora and Aliança do Brasil.
 
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 set the temporary increase of comission rates payable by Aliança do Brasil to BB Corretora for the distribution of some life insurance inside Banco do Brasil bancassurance channel.
 
The increased rates will be charged on written premiums of the life insurance that are object of the transaction, net of IOF tax rate, and will be in force from July 1st, 2017 to December 31st, 2017, extendable if agreed between the parties.  
 
After the term afore mentioned, if the parties does not agree to maintain the increased commissions, the rates will automatically return to those previously set on the Operational Agreement.
 
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 life insurance sold in the bancassurance channel, participated of the discussions that led to the decision of rising the commission rates, considering the economic and operating aspects involved.
  
However, the counterparty did not participated of BB Seguridade’s final decision, which was taken by the decision-making bodies of the Company and its controlled entities.
 
Reasons for the Company to conduct the transaction with related and not with third parties. 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 to BB Corretora to distribute the life insurance which are object of the commission increase.
 
Description of measures and procedures adopted to assure the arm’s length format of the transaction 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 Executive Board and Related Parties Transactions Commitee as provided in the Company’s Related Party Transactions Policy.
 
 
Brasilia, October 10th, 2017
 
Werner Romera Süffert
CFO