Company: BBD
Filing Date: 2025-03-31
Form Type: 20-F
Source: 0001292814-25-001244
Chunk: 362

Company: BANK BRADESCO
Filing Date: 2025-03-31
Form: 20-F
Item: Item 19
Chunk 362
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 and/or investment
under the contract.

The Group has applied judgment and considered
all relevant facts and circumstances to determine a systematic and rational method for estimating the insurance contract coverages provided
for each group of contracts and therefore the coverage units.

For Life Long Term Risk, Traditional
Pension and and Pension and Life contracts, the recognition of CSM is based on the projection of the value of the insurance liabilities
of the insurance contract portfolios. For PGBL and VGBL Pension contracts it is based on the portfolio management fee.

For the Long-Term Non-Life insurance,
the recognition of the portion of the Contractual Service Margin (CSM) in profit or loss is based on the expectation of premiums of the
portfolio.

For the Individal Health portfolio,
the recognition of the portion of the Contractual Service Margin (CSM) in profit or loss is based on the flow of people exposed to health
risk projected for future periods.

Method for measuring and evaluating fulfillment
cash flows

When estimating fulfillment cash flows included
within the scope of the contract, the Group considers the range of all possible results, specifying the amount of cash flows, timing and
probability of each scenario reflecting conditions existing on the date of measurement, using a probability-weighted average expectation,
which represents the average of all possible scenarios. In determining possible scenarios, the Groups uses all reasonable and supportable
information available without undue cost or effort, which includes information about past events, current conditions, and future forecasts.

When estimating future cash flows, the following
elements are included within the contract boundaries:

· Premiums and any additional cash flows resulting from those premiums such
as acquisition costs and future claims;

· Reported claims that have not yet been paid, claims incurred but have
not yet been reported, expected future policy claims and potential cash inflows from future claims recoveries covered by existing insurance
contracts;

· An allocation of the insurance acquisition cash flows attributable to
the portfolio to which the issued contract belongs;

· An allocation of fixed and variable overheads directly attributable to
the performance of insurance contracts, including indirect costs such as accounting, human resources, IT and support, building depreciation,
rent, maintenance, and utilities;

· Other costs specifically chargeable to the policyholder under the contract.

Cash flow estimates include directly observable
market variables and unobservable variables such as mortality rates, accident rates, average claims costs and probabilities of serious
claims.

When applying the mortality table for groups
of policyholders, the Group uses the parameters as a reference to project