Company: BBD
Filing Date: 2025-03-31
Form Type: 20-F
Source: 0001292814-25-001244
Chunk: 430

Company: BANK BRADESCO
Filing Date: 2025-03-31
Form: 20-F
Item: Item 19
Chunk 430
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Meetings are held quarterly of the Executive
Committee for Risk Management of Grupo Bradesco Seguros, of the Executive Committee of Investments and, monthly, of the Internal Meeting
of Asset Allocation by the area of Investment Management of Bradesco Seguros S. A. for the deliberative negotiations, possessing the functions,
which are necessary for the regulatory/improvement requirement in the processes of management.

Reinsurance policy

No matter how conservative and selective
insurers are in the choice of their partners, the purchase of reinsurance presents, naturally embedded in its operation, a credit risk.

The Bradesco Company’s policy for
purchasing reinsurance and approval of reinsurers are the responsibility of the Board of Executive Officers, observing to the minimum
legal requirements and regulations, some of them aimed at minimizing the credit risk intrinsic to the operation, and considering the shareholders’
equity consistent with amounts transferred.

Another important aspect of managing reinsurance
operations is the fact that the Company aims to work within its contractual capacity, thereby avoiding the frequent purchases of coverages
in optional agreements and higher exposures to the credit risk.

Practically, all property damage portfolios,
except automotive, are hedged by reinsurance which, in most cases, is a combination of proportional and non-proportional plans by risk
and/or by event.

Currently, part of the reinsurance contracts
(proportional and non-proportional) are transferred to IRB Brasil Resseguros S. A. Some admitted reinsurers participate with lower individual
percentages, but all have minimum capital and rating higher than the minimum established by the Brazilian legislation, which, in Management’s
judgment, reduces the credit risk.

Exposure to insurance credit risk

Management believes that maximum exposure
to credit risk arising from premiums to be paid by insured parties is low, since, in some cases, coverage of claims may be canceled (under
Brazilian regulations), if premiums are not paid by the due date. Exposure to credit risk for premium receivables differs between risks
yet to be incurred and risks incurred, since there is higher exposure on incurred-risk lines for which coverage is provided in advance
of payment of the insurance premium.

The Company is exposed to concentrations
of risk with individual reinsurance companies, due to the nature of the reinsurance market and strict layer of reinsurance companies with
acceptable loan ratings. The Company manages the exposures of its reinsurance counterparties, limiting the reinsurance companies that
may be used, and regularly assessing the