UPDATE 1-BB Seguridade beats estimates as broker, financial revenue soars

Tue Aug 12, 2014 7:24am EDT

(Adds dividend, revenue, expenses, background on company)

By Guillermo Parra-Bernal and Aluísio Alves

SAO PAULO Aug 12 (Reuters) - Brazilian insurance holding company BB Seguridade Participações SA beat second-quarter profit estimates on record revenue in almost all business lines and a surge in the value of investments.

Recurring profit, which excludes one-time items, was 845.4 million reais ($372 million) in the quarter, the company said in a securities filing on Tuesday. The result came in well above the 726 million reais estimated in a Reuters poll.

In a separate statement, the board of BB Seguridade approved a payout of 1.195 billion reais in dividends, equivalent to about 0.60 reais per share.

Revenue from underwritten premiums across all business segments, including retirement, pensions, property and life as well as the company's insurance brokerage, soared 25 percent to 1.156 billion reais from the first quarter. On an annual basis, revenue increased 46 percent as most business lines recorded double-digit growth rates, the filing said.

Recurring return on equity came in at 64.9 percent, compared with the poll's 44.4 percent estimate. The indicator was 43.7 percent a year earlier and 49 percent in the first quarter.

Proceeds from investments were 39.91 million reais, up 36.8 percent from a year earlier and 7.8 percent on a quarterly basis.

Consolidated expenses, which include payroll, general and administrative expenditures, totaled 129.9 million reais, down 7.6 percent from the prior three months, but up 9.6 percent on an annual basis. The poll estimated 119 million reais for the item.

BB Seguridade is a holding company that oversees state-run Banco do Brasil SA's interests in the insurance industry. BB Seguridade takes advantage of Banco do Brasil's extensive branch network and wholesale banking operations to sell insurance products to individuals and companies.

Management will discuss results with investors at a conference call on Wednesday.

($1 = 2.2750 Brazilian reais) (Reporting by Guillermo Parra-Bernal; Editing by Lisa Von Ahn)

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