Company: BBD
Filing Date: 2025-05-30
Form Type: 6-K
Source: 0001292814-25-002283
Chunk: 80

Company: BANK BRADESCO
Filing Date: 2025-05-30
Form: 6-K
Chunk 80
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. Issuer’s activities |

Reinsurance

Insurance
companies must operate with reinsurers registered with SUSEP, and may, exceptionally, contract out reinsurance or retrocession operations
not authorized to operate in Brazil when local and foreign reinsurers lack sufficient capacity.

Currently,
due to Decree No. 10,167/19, the Brazilian law provides that the insurer or the cooperative society may concede occasional reinsurers
up to 95% of premiums ceded in reinsurance, based on the totality of its operations in each calendar year. In the same way, the local
reinsurer may also concede up to 95% of the premiums issued relating to risks they have underwritten, also calculated on the basis of
the totality of its operations in each calendar year. It is worth noting that some lines or insurance modalities may have greater or lesser
restrictions on the percentages of premiums that may be ceded in reinsurance.

The regulation of SUSEP established a minimum compulsory contracting of 15% of the reinsurance ceded, with Brazilian reinsurers. In addition, it provided a limit to certain lines of up to 75%, so that a Brazilian-based insurer or reinsurer could transfer risks to related or foreign-based companies belonging to the same financial conglomerate.These limits were revoked when CNSP Resolution No. 353/2017 and CNSP Resolution
No. 451/22 came into force. CNSP Resolution No. 451/22 indicates that, for the purposes of fulfilling the preferential offer related to
Brazilian reinsurers, the insurance company must observe the percentage established in the current legislation, applicable to each automatic
or optional contract. In addition, it establishes that insurance companies should submit to SUSEP, by March 31 of the following calendar
year, technical justification for a percentage of reinsurance assignment in excess of 90%, considering the totality of their operations,
per calendar year. In addition, reinsurance and retrocession operations carried out between companies linked or belonging to the same
financial conglomerate must occur under balanced conditions of competition, and the parties involved will be responsible for demonstrating
compliance with these conditions.

Recently,
CNSP Resolution No. 380/20 extended the list of people who can purchase reinsurance, including: (i) Open Supplementary Pension Fund Entity
(EAPC) (Article 2, paragraph 1); and (ii) Closed Supplementary Pension Fund Entity (EFPC) and operators of private health care plans (Article