Hello, good afternoon. Thank you for attending our virtual meeting to present the results of the third quarter of 2024. This event is being recorded, and there is simultaneous interpretation into English. To listen to the audio in English, please click on the interpretation button. The event will be divided in two parts. First, the CEO, André Haui, and then our CFO will make presentations about the results. Then there will be a Q&A session. The company presentation is available at the company's investor relations website, ri.bbseguros.com.br. If you wish to send questions to the presentation, click on the Q&A button. Now, I would give the floor over to our presenter, so to André, and then we'll come back for the Q&A session.
Thank you, Felipe. I'll stand. Good afternoon, ladies and gentlemen, my friends.
I'm very pleased to talk about the results of BB Seguridade, year to date for the nine months. But before continuing, I would like to thank our associates, our shareholders, and customers for all the effort and the support in these recent months. And we'll keep going. So, as already disclosed, our net income in the last nine months was BRL 6.4 billion, a growth of 9.7% year-on-year. Our managerial net income has grown by 5.7%, totaling BRL 6 billion, another record high. Our combined operating results net of taxes for all the companies has been growing more than 10% a year, which more than offsets the increase. And so far, we've been having a great operational performance. When we look at the insurance business, the volume of premiums written in the last nine months amounted to BRL 13.2 billion, with a growth of 1%.
It's important to highlight that retained premiums amounted to BRL 11.4 billion, a growth of 8%. We continue to grow strongly in the more profitable insurance, such as credit life and crop insurance. And we assigned this reinsurance most of our credit insurance, and that's a strong part. Also, the loss ratio remains at historically low levels, with a reduction of 3 percentage points up until September and being at 25%. The partnerships with BB Seguridade have grown with BRL 1.167 billion, a contribution of partnerships. When in terms of pension, we're able to obtain BRL 42.2 billion in reserves and BRL 7.9 billion in net inflows, and reserves increased by 11% year-on-year. At the premium bonds business, we collected BRL 4.9 billion, with a growth of 4%, and reached reserves of BRL 11 billion.
When we look at the distribution business in brokerage, there is a brokerage revenue of BRL 4.1 billion plus 11%. There was also BRL 110 million in premiums written of large risks and transport insurance with partner brokers. That's more for corporate insurance, and we intend to grow more and more in this segment. Now, one of the pillars of our strategy is to have the customer experience at the center and innovate. NPS remains at the quality zone, growing year-on-year, and there was a reduction of complaints of 9% year-on-year, also showing the quality of our services, and it's important to say that our churn has improved by 15.2%.
When we look at the strategy with the customer that's overprotected, meaning customers that have owned four or more products within our portfolio, there has been a substantial increase of 9.5% in the number of customers like this. Also, their NPS improved by 9.3 points. It's important to highlight the innovations that BB Seguros brings. In recent months, we're able to launch insurance for preserved forests for rural producers or those who own lands in the area of environmental conservation. That's important because it allows companies to protect the biomes within several areas of Brazil by purchasing this insurance, especially right now when there have been so much wildfires and fires in general. We show our commitment to sustainability. We also developed a crop insurance for PRONAF for small producers such as sugarcane, rice, soybeans, and coffee.
We launched insurance for non-financed machinery and equipment focused on legal entities. So that will improve the access to our portfolio and increase our revenues. We're able to increase sales of personal protection insurance that, in addition to the digital channel, is also available in our BB branches, focusing on different niches. And in the last nine months, we invested more BRL 120 million, BRL 119 million in the third quarter of 2024, and BRL 368 million in the nine months of 2024 in digital transformation and analytical maturity. So I would like to thank Banco do Brasil, our controlling shareholder, and also the trust of our shareholders. And we are available to society so we can continue to increase the culture of insurance and protection in the whole country. Now, Rafael will talk about the financial results.
Thank you, André.
Now, moving on to page five, I would like to talk about the results in the third quarter and year to date. I also talk from the managerial point of view, adjusted, that does not consider the IFRS 17. We continue in the same situation because this new rule has not been adopted by SUSEP. So most of our dividend flow for shareholders is based on IFRS 4. So focusing on the concept that we reported up until 2023 and started now reporting on a managerial basis, our net income for the quarter, BRL 2.3 billion in profit with a growth of 10% year-on-year. If we look at the pink bars, there is an adjustment as usual where we separate the effect of the temporal mismatch of the update of IGPM for the defined benefit plans.
There is one month of lag in this, so it's neutral effect that adds up to zero, but it generates volatility. So the results of the third quarter were highly benefited for this because it added BRL 146 million in the results of the third quarter. This year was the opposite. It decreased by BRL 11 million. So at normalized basis, this growth of 10% that we reported would have been even greater at 19%, which is very good given the challenges, especially in the financial result. In year to date, in the last nine months, it's a longer period, so this mismatch does not play such an important role. A growth of 6% and a growth both in the quarter and year-on-year, year to date as well, came from operations, more than offsetting the loss in financial results, which was expected.
We were even surprised that we were able to offset that loss or that decrease with the increase in volumes from insurance. But something we did not expect in this year and has happened and impacted the financial revenue significantly was the opening in the interest rate structure that caused the mark-to-market to be negative in assets that are linked to inflation at Brasilprev to ensure the VGBL and PGBL benefit plans. So on the right side of the slide, the financial result decreased by 16% year-on-year and 19% year to date, which accounts for 16% of the profit of the first nine months of the year, where it represented 21% last year.
In the next page, we break down the net income for the first nine months of the year, separating between the main components and the main factors that influenced this change when compared to the same period of last year. So operations added BRL 15.44 billion, while finance used up BRL 221 million. So as I mentioned, all the growth comes from operations, and a part of it is used by the decrease in the financial revenues. So on the right side, it shows clearly that there is an excellent performance on premiums written, either on the left side, either from new sales of this year as well as transfers from the excellent performance in the last two years, which helps this growth in revenues from brokerage. And there's also a component of mix that collaborates to that.
So all operations had a composition in terms of sales with higher commissions, so more concentrated in products or payment methods that have a higher percentage brokerage fees, which increased in terms of brokerage revenues at BRL 238 million. Another fact that contributed with a direct effect was pension funds with a growth of 112 in management fees in line with the growth of reserves. Another very important factor that has helped the results of this year was the result in the loss ratio, BRL 177 million coming from reduced loss ratio, especially in crop or rural insurance. And a part of this gain is used up by the increase in expenses or due to the offsetting effect from the increase in commissions that is good for the brokerage firm and not so good for the insurance firm. But on a conglomerate view, it's positive.
Then in other components, the financial part with the drop of SELIC, the increase in the average volume of operations, there's a component of financial expenses that, especially at Brasilcap, with the liabilities linked to TR, so the SELIC interest rate has a direct impact on it. That's helpful. The temporal mismatch with its effect and a good portion of this BRL 120 million in net investment income change came from mark-to-market with the loss of BRL 117 million, whereas last year there was a positive gain by BRL 97 million. Last year, the context was very favorable. The interest rate in the first nine months was very high, around 13%, with the curve going down and low inflation. All wins were tailwinds. Now it's the opposite situation. Interest rates going down, the curve opening, and inflation rates higher than last year.
This year, there's a concentration of not so positive effects. On the next page, we break down operation by operation. On the upper left corner, on the premiums written chart, in the third quarter, there is a reduction of 5% year-on-year in the light blue bars. On the right side, we can see that most of this drop of 5% was in the rural segment that accounts for half of premiums written, especially in crop insurance that was reduced by 32% year-on-year in the third quarter. Looking within the rural insurance, there is a very strong performance in other lines of insurance. The rural lien insurance has grown, especially for livestock. And that's not sufficient to offset everything, but a good portion of agriculture insurance. Another product that was reduced year-on-year was life insurance.
We understand that it's something that refers to the third quarter, and October has improved, and in the third quarter, again, credit life that has grown by 9.2%. Year to date, premiums written have grown by 1%. The dynamics is the same because year to date reflects the same contribution factors that I mentioned for the third quarter. I would just like to emphasize that this 1% in premiums growth in premiums written does not reflect directly what has contributed to improve the results of the company. Within the rural insurance premium and crop insurance, 78% goes to reinsurance. So what ends up being in the company's results is just a net of commission between what is paid for the broker and what we receive. What's important to add up to results is the retained premiums that has grown by 8%, which is within the guidance interval.
When you look at the lower left of the slide, we have the main performance ratios. The result that has quality, a reduction of the combined ratio. The light blue or light green line has been reduced, especially in rural insurance. Higher commission ratio reflects what I just said, this mix of written premiums, more concentrated in agriculture insurance that increases average commissions, but it's good for BB Corretora. And reduction in G&A ratio was a reduction of 60 basis points and 40 basis points in accumulated year to date. That's in line with investments in technology and the reclassification we made, as I mentioned in the second quarter call, some investments in technology that were being classified as CapEx now are being recorded as OpEx. And we made an adjustment in the second quarter, and now we report according to the new methodology in the third quarter.
That's what explains the increase in G&A ratio. Net investment income drops 18% year-on-year and 10% year to date. This is a company that's post-fixed, so SELIC plays an important role here that's partially offset by the increase in volume. Finally, net income has grown 13% year-on-year and 9% year to date with the growth of premiums earned in the third quarter, which amounted to 7% and 9% the third quarter and 9% year to date. With the reduction of the loss ratio, the combined figures are better. These were the main drivers plus the offsetting of net financial income. Now, pension operations at Brasilprev on slide 8. Contributions are stable year-on-year. In the third quarter, there has been a drop in net inflow, less withdrawals. There's an effect of volatility of interest rates.
People who are risk averse, when you reach a volatility period, redemptions increase, so this is an effect concentrated in the third quarter, but in year to date, this effect is diluted. We noticed that the growth in net inflows is there; there is a growth. Reserves grow by 11%, reaching BRL 423 million in September. Management fee grows at the same level, basically, despite the drop in the average management fee due to the higher concentration in vehicles that are more conservative, where the fee is lower. This has impacted the average management fee for the company as a whole. So basically, the average fee drops, but revenues grow at the same pace, and the net income grew 13% year-on-year. Basically, when we look at the third quarter and year-on-year, there's an increase due to the increase in management fee.
Also, the reversal in coverage ratio that's partially reverted by the negative effect of IGPM. So year to date, the drop of 11% reflects the drop of net financial income that's associated to the fact that last year, the IGPM accumulated for inflationary traditional plans are adjusted by IGPM. To this year, the inflation in the nine months has increased our financial expenses, pulling net income down. In Brasilcap, premium bonds have grown 6% year-on-year, 4% year to date. Reserves are stable. Draws paid grew 28% year-on-year, dropped by 9%. Still a relevant value, BRL 43 million in the first nine months of the year. The net investment income has dropped by 8% year-on-year in the third quarter due to the compression of financial margin, 60 base points.
In year to date, the restriction of margin is lower, but it's offset by the increase in volume. The net investment income grew by 8% when compared to the same period of 2023. This dynamic of financial revenues and expenses explains that net income had dropped year-on-year by 5% and increased year to date by 6%. BB Corretora, we have a 10% growth in year-on-year in the third quarter in brokerage revenue, 11% year to date, not only from new sales, but a mix of sales more concentrated in products that have higher commission rates. The net margin is stable, and therefore, the net income grows at the same level of growth of revenues. To wrap up in the last page, our comparison to the guidance for the year.
Non-interest operating result goes up from 8.8% to almost 12% in year to date for nine months. Loss ratio is certainly an important effect to justify these increases. Premiums written, there was an interval from 8%-13% with delivered 1% year to date. And here, we chose to review this range here. So 8%-13% growth, we expect to end the year from 0%-3%. I would like to remind you once again that if our guidance was for premiums written, we didn't need to review it. But in premiums written, agriculture or rural insurance plays an important role, so we had to adjust that. And finally, the PGBL and VGBL pension plans reserves indicator has grown above the interval. Considering the scenario that I talked about, scenario on volatility of interest rates, we are growing even more than we expected.
So these were the main points I would like to highlight, and now we are available for the Q&A session.
Thank you, Rafael. Let's now start the Q&A session. We do have some questions. If you want to ask a question in writing, please click on the Q&A button on the bottom of your screen. And if you want to ask the question in audio only in Portuguese, please use the microphone. The first question is from Guilherme Grespan from JP Morgan. Good afternoon, Guilherme. How are you?
Hi, Felipe. Good afternoon. This is an area of expertise. Thank you for the presentation and congratulations on the results. I would like to focus on life and credit life in the medium term. It was mentioned that life insurance recovered in October, but thinking about 12- 18 months forward at the top line of these two products.
In life insurance, I would like to understand whether you agree that the penetration of number of customers is mature and how could we think about the increase in life ticket in the medium term. And for credit life insurance, in what credit product is the cross-selling divided? I think consigned credit and working capital, but if you could give us a breakdown like X% of sales come from this product and so forth. So just for us to have an understanding how this will correlate to the credit origination appetite at the bank. Thank you.
About credit facilities, i n general, 80% of premiums today are with individuals and 20% with legal entities. Legal entities are talking about working capital and small and medium-sized companies. For individuals, for all the lines of insurance except for revolving credit and credit cards, all the others already have credit life.
But a significant amount comes from consigned credit, personal credit. Just removing the consigned credit, as I said, that's a payroll loan. Most of the bulk of it comes from payroll loan. And in terms of what we expect from these two types as the people segment, there is still a lot of room for penetration for life insurance. And not only at Banco do Brasil, but in Brazil as a whole, the penetration is about 0.5% of the GDP. Whereas in other emerging countries, it's 2% of the GDP. So there is room to grow. The main challenge we face is how can we occupy that space. For example, there is a niche that we do not operate in, and we are studying options to go there. Is the life insurance with an accumulation factor? Our product is purely risk-based.
Another possibility that would help in penetration are low-cost products. For example, personal protection insurance, let's say 8 million, it's a small ticket. I would say that there is an opportunity, considerable opportunity to increase penetration. But in addition to these challenges that I mentioned, also an important thing we must take into account to increase penetration nationwide is to have available income. For credit life, we've been able to maintain a good performance. Penetration in credit is at the same level with no changes. But life faced some difficulties in the third quarter because this is a product that needs a very active approach in sales, more than credit life, because credit life comes within the context of the origination of credit. In the third quarter, there was an influence from the negotiation of salaries and of bank workers. So last year, that didn't happen.
That changed the performance of the third quarter. And another point that's important to consider, the third quarter of 2023 was the strongest quarter ever in the history of BB Seguridade. So it's a high comparison basis. And in the fourth quarter, we see a recovery in this fourth quarter as of October that life insurance is recovering.
And in credit life, is it fair to think that the disbursement of insurance would go in line with credit disbursement, or do you think it would be greater?
Well, today, I have no reason to believe that that would be greater. We do not have that many options to expand in terms of addressable audience. What we had to do was done.
Okay, that's very clear. Thank you.
Thank you, Grespan. Our next question comes from Charles Winsborne from Goldman Sachs. Tiago, go ahead. Tiago Binsfeld.
I would like to understand the pension, how the update of participant bases and the update by IGPM, how often is that done? Will there be more frequent reviews from now on?
Thank you, Tiago. Regarding the update of bases, it's part of the test of Liability Adequacy Testing that's made every three months. This movement now reflects the result of IGPM that's becoming positive. At Brasilprev, the guideline is not to reduce the benefit of customers. So when IGPM accumulates a negative value, we do not transfer that negative factor to the benefit of the customer. But when it becomes positive, we reduce this increase that I added. It's reverted when the IGPM becomes positive.
The adjustment made was due to the fact that at the end of the last quarter, the index became positive, and we started to reverse the increases we made not to decrease the benefit of the customer with a negative inflation rate. Then we made the adjustment with the basis of September for the liability adequacy testing. With this new rule from SUSEP, this will be done every quarter. When it's negative IGPM, if IGPM does not become negative year to date or in 12 or 12 months, we won't have that effect from now on. What will happen with a neutral effect will be a change in provisions because this was a reversal in the complementary protection provision, and that will be incorporated in the mathematical provision for benefits to be granted. I can reassess that one provision is lower than it should be.
The other one is higher than it should be. So I changed the provisions, but I swapped the provisions, but it will be a neutral effect. It's not so easy to understand, but we provided a summary that describes this in detail, and the idea is not to apply the negative inflation rate to the benefit of the customer, but then when the IGPM goes back to positive, the customer gives me back that amount so that year to date, the right IGPM adjustment can be made, so there is a small mismatch there.
Okay, thank you, Rafael. That's clear. If I could ask a second question, looking at the dynamics of premiums written and premiums earned, when you think for 2025, do you think this current dynamic can prevail? Trying to imagine how these two lines could increase, also sending policies for reinsurance.
In terms of premiums earned, this dynamics of growing above premiums written is likely to remain, provided that we continue with a favorable credit origination environment, so in payroll credit and working capital for small and medium companies, if the environment is positive, this will remain. Otherwise, there will be a rebalancing effect, so premiums earned will go back to a closer to premiums written. It transfers results from the past, so that brings a higher growth in premiums written or earned. In terms of agriculture insurance, our retention is still below the optimum level, but this is a process that we are increasing this retention slowly because in the past, it used to be 10% and it increased to 20%, and this year, we are at 22%, so we intend to converge to the point that we believe to be optimal, but this is quite dynamic.
So it's revised often.
Okay, thank you, and congratulations on the results.
Thank you for the question, Tiago. Next question from Antonio Ruher from Bank of America. Good afternoon, Antonio Ruher.
Thank you for the question. Congratulations on the results. I have two questions. First, for rural insurance, if you could give us more detail about the trends that led to this weaker growth due to crop insurance, talking about demand and the expectations. What do you expect for the next quarters, and how has that impacted the loss ratio? We see loss ratio much lower. So how would be the trend for loss ratio and premium growth for the next two or three quarters? And also, if I could ask a question about 2025, what's your expectation for 2025 in general terms? I know it's early.
You haven't yet given any guidance, but if you could just mention your general expectations for loss ratio, premiums, and finance?
Thank you for the question, Antonio. I'll start, and you can add to it if you want. In the agricultural sector, after the pandemic, all the supply chains, everything, and supply and demand is being rebalanced, and that is also true for agribusiness. Also, there was a weather issue that influenced the schedule for purchase of inputs and making loans, and that affected our performance during this year. In addition to international factors such as commodity prices, exchange rate, all of that influenced our sales of crop insurance, so it's a period of rebalance, and there's nothing to worry about, but that is also true for the adjustment after the pandemic.
In terms of loss ratio, both realized up until now and from the future, there's nothing indicating a major concern with any weather event. It is now raining, so the areas highly affected by drought now have the humidity levels of soil higher, now more favorable for planting season. We don't see any problem in planting and new planting. In terms of what was going to be harvested, we also didn't face any issues. Now, from 2024-2025, you mentioned about the likelihood of occurrence of La Niña, El Niño. Some reports show a prevalence of La Niña, but not as severe. Some weather reports are neutral for next year, which would be extremely favorable in terms of output. At first, there's no source of concern for us in terms of increase of loss ratio in that segment.
In the other lines of insurance, we are making adjustments to the underwriting policy. Agriculture has higher volatility, but home insurance, we implemented a strong program to reduce loss ratio that's having good results this year, and we're also working on credit life to bring loss ratio to a lower level. The current level is not something we're pleased with, but in the aggregate, I'd say that the trend for loss ratio is very positive. It will depend on the economic context, however, and how successful will be in placement products, especially those that are linked to credit, so it's still early to make that estimate, but something we are more comfortable in saying that is the main concern we had for 2024 was the financial result is not something that we'll have in 2025 because we expect interest rates to go up until the end of the year.
But next year, it's likely to decrease, maybe not with so much volatility in the interest rate curve. And that will help to maintain the company in the trend of a bottom line growth. But it's too early to make estimates.
Okay, that was very helpful. Thank you.
The next question is from Kaio Prato from UBS BB. Kaio Prato from UBS BB. Thank you for the question. I'm sorry, I cannot hear him well. It's chopping. I'm sorry, maybe your internet connection is not so good. Your audio is chopped. I think we can move on to the next question. And then when Kaio is back, he can ask his question. The next one comes from Pedro Leduc from Itaú BBA. Good afternoon, Pedro.
Good afternoon. Thank you for the question, and congratulations on the team.
My question is a prospective one about the delay in planting and therefore led to a delay in purchasing credit and insurance as you revise guidance downward. It seemed that there was a movement maybe in the fourth quarter. Everything that lacked in the third one will happen. Now, thinking about penetration of insurance within credit, was that reduced to the price charged? And in terms of reinsurance cost, how do you see that for the next cycle? I'm trying to understand whether we could increase penetration of agroinsurance maybe through price or whether there was any resistance of purchasing insurance in this cycle. Thank you.
Thank you for the question, Pedro. We assessed the penetration in credit with no change. It remains stable. What you mentioned in the end of your question, the penetration remains the same.
In terms of conditions for reinsurance for this crop season, I think customers obtained favorable conditions so that it has not impacted. For 2025, we expect conditions to even improve. In Antonio's question, in terms of maybe people are expecting a more severe weather event, La Niña, at first, there's nothing that doesn't worry us because La Niña is prevailing now, but at low intensity and most weather reports expect some neutral effect. But this will reflect in the loss ratio potentially at the same level, or if there is any change, it will be small, not significant. So in terms of price, this is a constant concern.
We see today that the penetration of crop insurance in the impacted area of Brazil or in the planted area of Brazil is still very low compared to other markets such as the United States, which is 10% here compared to 80% there. I mean, a ballpark figure, of course, and we still have work to do in terms of developing products, especially for lower risk areas. Our products are good for high-risk areas but are not so appealing for low-risk areas, and this is a great challenge we have to increase penetration in Brazil as a whole.
Thank you. Thank you, Thiago. The next question comes from Daniel Vaz from Banco Safra.
Thank you. Good afternoon, Felipe, André, and Sperenio. Thank you for the question. Congratulations on the results. Going back to rural insurance, we see an increase and acceleration of planting in the center of Brazil.
The South still has an issue with the weather. Could you look at the scenario and compare the southern region with the Center-West of Brazil and say how farmers are behaving regarding insurance? In the fourth quarter, are they getting insurance for custeio and also making crop insurance at the same time? And how is it in the South?
As for the current stage of planting, you summarized it well. In more recent data, we saw an increase in rainfall, especially here in the Southeast and South of Brazil in the month of October. That helped farmers to advance with planting, especially soybeans and corn. With regard to getting custeio financing and buying insurance, there has been an advancement, but below what we expected in-house. That's why we reviewed the guidance.
This is not only an issue from the origination, but the components that are part of credit costing is a result of several variables. The amount insured, if I'm going to buy insurance for sales or only for costing, and in costing, there is an important variable, which is the input price. If the planted area is reduced or there is less need for input or seeds, this reduces the cost of the cost in general. If there is the level of soybeans is reduced, there is a reduction in the amount to be insured, and therefore, the premium paid in crop insurance. There are several factors that compose that. There has been an advancement with the increase of interest rates and with planting, but that was below what we expected. This is why we reviewed the guidance interval.
Thank you, Daniel. Thank you. I was muted. Thank you. Thank you for the question, Daniel. The next question now from Kaio. Can you hear us, Kaio? Hi. Can you hear me now? Says Kaio.
Oh, yes. Great. Sorry for the previous problem. Good afternoon, everyone, André and Rafael. My question is also related to rural insurance. And here, I'm looking more at retained premiums. When you look at the growth in retained premiums, agricultural has been lower than expected, but other life has grown between 15 and 20%, and both account for almost 90% of these retained premiums. So what explained this mismatch between the performance among products, whereas in theory, there should be some cross-selling among them? And looking forward, what do you expect for these two products in addition to agriculture insurance? And in the next 12 months, what do you expect in terms of growth?
Finally, any metric for profitability among these three products, which one is most profitable?
Thank you, Kaio. That's a good point. Just adding, in terms of the last part of your question, not only Lien and Life had a good performance. Lien grew by 25% year to date and Life by 15%. These insurance lines are much more profitable than crop insurance. Crop insurance, there has been a positive loss ratio, but that's not normal. The average loss ratio for crop insurance is around 69%. That's a historical behavior. Rural and Life for rural farmers have a lower loss ratio, and this is why we don't assign that to reinsurance companies. There were some adjustments, and the addressable portfolio increased. We add coverage for livestock that could be given as collateral for credit. This is something that we did not used to have.
In Life for rural producers, we had an increase in the eligible audience and the insured amount. So that explained the mismatch of growth in the rural and Life insurance when compared to crop insurance. For 2025, the trend is for these lines to grow more in line with crop insurance. Today, we don't expect any major adjustments that need to be made in these two portfolios that would continue to cause these lines to grow in a mismatched way compared to crop insurance.
Okay, that's perfect. Thank you.
Now, a question from Eduardo Nishio from Genial Investimentos.
Good afternoon, Felipe, André, and Rafael. In terms of agreements that you are reviewing with Banco do Brasil, and Banco do Brasil has also enforced a type of this insurance that would be a perennial contract. Do you have any updates about that?
If you could share the type of this renewal, whether it will be more automatic, the renewal of the contracts to decrease the volatility as the contracts expire that is created. Do you see the contract with Caixa as a parameter in terms of Caixa Seguridade?
Hi, Eduardo. Thank you for your question. I'll answer that. BB Seguridade is Banco do Brasil, so it's only natural that we'll continue to be the insurance broker and the insurance company of Banco do Brasil. In terms of contracts, we talk about it. It's been discussed, but this is not a concern because we'll continue to exist, to be strong, and continue to grow. It's natural that this discussion takes place and that renewal comes at the right time with some changes in parameters for both parties. There are strong partnerships. These are strong companies.
It's part of our daily activities. This is not something that we consider because we think that this is a strong share. We've paid a lot of dividends since the IPO. The bank is a controlling shareholders, so we're always talking, and at the right time, we'll disclose any news. This is something that's been discussed. I just don't remember the other part of your question. We're always looking outward to the models, not only from Caixa, but to the market as a whole and the global market. We are a different entity because we're owned by a government-owned company, and we have some. We're mixed in that sense, but we still have many contracts with our partners, with the bank.
So now we're focused on getting the portfolio more modern, generating results, making the access to the pension market more available to people as a whole, and pay more dividends to shareholders. This is a small market in Brazil still, so we do have a lot of room to grow. So this issue of the contracts would be addressed, and it's an ongoing part of the business.
Thank you, Nishio. The last question from the Q&A was sent in writing regarding dividends. If there's any plan to change the policy to quarterly dividends, and is there any updates on the repurchase program and any opening of any new program? As for the repurchase program, I'll ask him to answer. But in terms of dividends, we've always enforced a policy of paying dividends.
There's no adverse scenario or contrary policy, so we always look at the best option, trying to reach the highest levels. That's it. What about you, Rafa?
Yeah. In terms of frequency, the corretora, the brokerage firm, always pays all dividends, so it doesn't really. We have to pay dividends every semester, every six months, not less than that. Most of our available cash flow comes from the brokerage, the corretora, and in the insurance companies, we are very conservative in terms of paying dividends. We prefer to retain cash throughout the semester and make an assessment at the end of six months to see how much we have available to pay in dividends to shareholders, so far we have not discussed. We don't plan to increase the frequency of dividend payment. In terms of repurchase, the program has been almost totally executed.
We need to manage the cash that arrives at BB Seguridade and to all other companies that I mentioned. So this is the main factor that limits somewhat the calendar of dividend payment, but it's been almost totally executed. In terms of launching a new one, we first need to fulfill the formal requirements to cancel. So far, we cannot cancel a new one until we have fulfilled the entire cancellation requirements.
Okay, this is it. There are no further questions. With this, we end our virtual meeting for the earnings of the third quarter. I'll ask you to please give your feedback on the form that will be sent after this conference call is finished. Would you like to make any final remarks, Rafael and André?
Just saying t o the investor relations team and myself, we are available to answer any further questions you may have, and have a good afternoon.
I would like to thank you for your trust, and especially our customers and our team. Without our team, none of this would be possible. No results could be delivered. So this is a group effort, lots of love and dedication involved. So thank you all from the investors, Brasilprev, and Brasilcap, all the companies. Thank you all very much.