Company: BBD
Filing Date: 2025-03-31
Form Type: 20-F
Source: 0001292814-25-001244
Chunk: 359

Company: BANK BRADESCO
Filing Date: 2025-03-31
Form: 20-F
Item: Item 19
Chunk 359
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 if cash flows from rights and obligations that exist during the reporting period under which the Group may require the policyholder
to pay premiums or the Group may be required to provide insurance coverage to the policyholder. For contracts with discretionary participation
features, cash flows are within the boundary of the contract if they arise from the Group's substantive obligation to deliver cash at
a present or future date.

Initial Recognition

The Group recognizes groups of insurance
contracts issued upon the occurrence of the first of the following facts:

· The beginning of the coverage period of the group of contracts;

· The maturity date of the first payment of a policyholder in the group;
or

· The date when a group of contracts becomes onerous.

New contracts are included in the group when
they satisfy the recognition criteria within the reporting period, until such time as all the contracts expected to be included in the
group have been recognized.

Measurement approach

To measure the liability for the remaining
coverage of its insurance contracts, the Group applies the General Measurement Model/Building Block Approach (GMM/BBA), the Variable Fee
Approach (VFA) and the Premium Allocation Approach (PAA), detailed below.

In the General Measurement Model (GMM/BBA),
insurance contracts issued are measured at initial recognition at the total of: (i) estimated future cash flows, adjusted for the time
value of money, and an explicit risk adjustment related to the non-financial risk; and (ii) the Contractual Service Margin (CSM). The
Group applies the general model to the following portfolios: Long-Term Risk Life, Whole Life, Defined Benefit Pension, Traditional Pension,
Individual Health, Individual Dental Health and Long-Term Non-Life.

As a variation of the General Measurement
Model (GMM/BBA), the Variable Fee Approach (VFA) follows the same principles as the General Measurement Model (GMM/BBA), but the subsequent
measurement differs in relation to the measurement of the CSM. The VFA is applied to direct participation contracts, which are contracts
that are substantially investment-related service contracts. Additionally, for these types of contracts, the liability to policyholders
is linked to underlying items. “ Underlying items” are defined as "Items that determine some of the amounts that an insurer
will pay under an insurance contract". Underlying items can comprise any number of items; for example, a reference portfolio of assets,
the Group's net assets, or a specified subset of the Group's net assets. The Group applied this methodology to