BB Seguridade Participações SA revised its 2019 guidance for profitability and written premiums upward after posting a year-over-year increase of 18.5% in its second-quarter adjusted profit.
The insurance company, which is majority-owned by Brazil's government, said it now expects adjusted net income to grow by 8.0% to 13.0% in 2019, up from a previous forecast of 5.0% to 10.0%.
It also foresees written premiums, on a pro forma basis for its Brasilseg business, increasing 10.0% to 15.0%, compared to an earlier guidance range of 7.0% to 12.0%.
The updated guidance reflects, among other factors, BB Seguridade's having outperformed its targets in the first half of 2019 and the company's new corporate configuration following the divestment from IRB-Brasil Resseguros SA in July.
BB Seguridade booked adjusted net income of 1.08 billion Brazilian reais in the second quarter, up from about 910.0 million reais a year earlier. The company's adjusted profit for the first half reached 2.09 billion reais, rising 15.1% from the prior-year period. The company attributed the improved first-half result mainly to "better-than-expected performance of the combined net investment income of all companies within the conglomerate."
Pro forma written premiums, meanwhile, surged 18.7% in the first half from a year ago, due to a higher-than-expected volume of credit life premiums.
Parent company Banco do Brasil SA is due to report second-quarter results Aug. 8.
As of Aug. 6, US$1 was equivalent to 3.98 Brazilian reais.