Company: BBD
Filing Date: 2025-03-31
Form Type: 20-F
Source: 0001292814-25-001244
Chunk: 364

Company: BANK BRADESCO
Filing Date: 2025-03-31
Form: 20-F
Item: Item 19
Chunk 364
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. The Group portfolios that fall under both categories are: the Pension Portfolio, including Traditional
Pension, PGBL and VGBL portfolios.

Income from Insurance

The Group writes insurance contracts and
in recognizing income from these contracts, reduces its Liability for Remaining Coverage (LRC).

For groups of insurance contracts measured
under the General Measurement Model (GMM/BBA) and the Variable Fee Approach (VFA), income from insurance is composed of the sum of the
changes in Liability for Remaining Coverage (LRC) due to:

· Expenses from insurance coverage incurred in the period;

· Changes in risk adjustment for non-financial risk;

· The amount to be released from the Contractual Service Margin (CSM) for
the coverage provided in the period;

· Other amounts, such as experience adjustments for premium receipts related
to the current or past period, if any.

Income from insurance also includes the portion
of premiums related to the recovery of insurance acquisition cash flows included in expenses from insurance coverage in each period. Both
values are measured systematically based on the passage of time.

In applying the Premium Allocation Approach
(PAA), the Group recognizes insurance income for the period based on the passage of time, allocating expected premium receipts, including
experience adjustments to premiums for each coverage period.

Insurance Contract Expenses

Expenses from insurance coverage arising
from a group of insurance contracts issued consist of:

· Changes in the Liability for Incurred Claims (LIC) related to claims and
expenses incurred in the period, excluding the reimbursement of investment components;

· Changes in the Liability for Incurred Claims (LIC) related to claims and
expenses incurred in previous periods (related to past coverages);

· Other directly attributable expenses from insurance coverage incurred
in the period;

· Amortization of insurance acquisition costs;

· Loss component of onerous groups of contracts initially recognized in
the period;

· Changes in the Liability for Remaining Coverage (LRC) related to future
coverage that do not adjust the Contractual Service Margin (CSM), as they are changes in the loss component in the groups of onerous contracts.

Financial Revenues and Expenses

The Group adopts the segregation of financial
income and expenses, recognizing the interest related to insurance contracts in the Statement of Income and the amount related to changes
in financial fees and assumptions in other comprehensive income, for all portfolio measured by PAA and GMM/BBA methodology. The financial
income and expenses for VFA portifolio is entirely allocated in the Statement of Income.