SAO PAULO (Reuters) - Brazilian insurance holding company BB Seguridade SA (BBSE3.SA) posted on Monday a 12.7 percent drop in third-quarter profit from a year earlier as lower interest rates continued to impact its securities portfolio.
Recurring net income came in at 891.6 million reais ($239.37 million) in the quarter, roughly in line with the Refinitiv average estimate from analysts of 924.8 million reais, but down from 1.021 billion reais a year earlier.
Since the beginning of the year, BB Seguridade management has been saying that raising profit would be a challenge in 2018 as Brazil’s central bank holds benchmark interest rates at an all-time low of 6.5 percent.
BB Seguridade, which is controlled by Banco do Brasil SA (BBAS3.SA), also posted lower sales of pension plans and premium bonds, according to a securities filing.
The insurance holding company’s return on equity was 38.1 percent, down 8.2 percentage points from a year earlier.
Reporting by Carolina Mandl; Editing by Leslie Adler