Bradesco's Bradseg prioritises profit over auto price war

Bradseg, the holding unit that concentrates the non-health insurance businesses of Banco Bradesco, intends to expand its market presence by tapping the low coverage levels across Brazilian households and businesses. However, the company will avoid sacrificing profitability through aggressive growth in segments caught in fierce price competition, such as auto coverage, CEO Ney Dias told Broadcast.

Dias took helm of Bradseg in May after Bradesco separated its healthcare assets into Bradsaúde, a newly listed company. In the second quarter, Bradseg's Auto/RE division reported revenue of R$ 2.6 billion, representing a modest increase of 1.8% compared with the same period last year. The annual automotive portfolio stands between R$ 7 billion and R$ 8 billion.

In supplementary pensions, new financial operations tax rules have applied since the beginning of the year on annual contributions above R$ 600,000 in VGBL plans. In response, Dias stated that the company is pursuing expansion opportunities in PGBL plans.

The company is also targeting the agricultural sector despite recent government subsidy reductions. Data from the National Confederation of Insurers shows planted area covered by crop insurance fell from a peak of 14% in 2021 to around 3% last year. Bradseg maintains interest in rural coverage following legal framework approval making public subsidy expenses mandatory, while seeking to distribute life, pension, and B2B2C solutions to producers.