Company: BBD
Filing Date: 2025-03-31
Form Type: 20-F
Source: 0001292814-25-001244
Chunk: 194

Company: BANK BRADESCO
Filing Date: 2025-03-31
Form: 20-F
Item: Item 4
Chunk 194
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eding risk to foreign reinsurance companies and contracting of insurance abroad. Insurance companies must reinsure amounts exceeding their retention limits.
 Since CNSP Resolution No. 168/07 was amended by CNSP Resolution No. 353/17, it no longer provides for a minimum limit of mandatory contracting with local reinsurers. However, in accordance with Article 15 of CNSP Resolution No. 168/07, the insurance company was still required to give preference to local reinsurance companies in at least 40% of the assignment of reinsurance agreements to each automatic or optional contract. In addition, CNSP Resolution No. 168/07 also no longer provided for limits on risk transfer from insurers to companies linked to the same financial conglomerate. With the amendment by CNSP Resolution No. 353/17, it has been established that only reinsurance and retrocession operations within the same economic conglomerate should “ensure the effective transfer of risk between the parties”, and “be executed at arms-length”.

117 – Form 20-F 2024 | Bradesco
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Subsequently, CNSP Resolution No. 168/07 was revoked by CNSP Resolution No. 451/22, regulated by Circular No. 683/22, which provides for the transfer and acceptance of reinsurance and retrocession operations and their intermediation, coinsurance operations, foreign currency operations and insurance contracts abroad. This resolution provides for new rules on preferential offers to local reinsurers, indicating that, for the purposes of fulfilling the preferential offer, the insurance company should conduct a formal consultation with one or more local reinsurers of their choice, according to the limits provided for in the legislation.
 Resolution No. 432/21, amended by the Resolution No. 448/22 and Resolution No. 453/22, as well as by Circular No. 648/21, amended by Circular No. 678/22 regulates: technical provisions, assets which reduce the need for coverage of technical provisions, risk capital, adjusted shareholders’ equity, solvency regularization plans, retention limit, criteria for investments, accounting standards, accounting and independent actuarial audits, and the Audit Committee applicable to insurance companies, open pension fund entities (EAPCs), capitalization companies and reinsurers.
 Insurance companies are exempt from ordinary financial liquidation procedures in case of bankruptcy, and instead follow the special procedure administered by SUSEP. CNSP Resolution No. 444/22 provides for preventive prudential measures aimed at preserving the stability and sound