Company: BBD
Filing Date: 2025-03-31
Form Type: 20-F
Source: 0001292814-25-001244
Chunk: 363

Company: BANK BRADESCO
Filing Date: 2025-03-31
Form: 20-F
Item: Item 19
Chunk 363
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 the number of benefits to be paid to policyholders. The estimated
amounts to be paid are incorporated into the measurement of the entity’s insurance contracts.

For the calculation of the mortality rate
to be used for the measurement of insurance contracts, the Group uses a number of mortality tables. The use of different mortality tables
is done to reflect the probability of lifespan of certain groups of policyholders.

The Group also uses the persistence index
as an assumptions in the measurement of fulfillment cash flows. The persistence index aims to capture the average time that the policyholder
will remain party to the contract considering the possibility of cancellation.

The Group calculates the changes in fulfillment
cash flows at the end of each reporting period. This occurs for changes in non-financial and financial assumptions, and discount rates.
The Group first calculates the changes in discount rates and financial assumptions on fulfillment cash flows (as expected at the beginning
of the period) and then calculates the changes in these cash flows from the change in non-financial assumptions.

Acquisition cash flow

The Group includes insurance acquisition
cash flows in measuring a group of insurance contracts if they are directly attributable to individual contracts in that group, the group
itself or the portfolio of insurance contracts to which the group belongs.

As such, an expense related to the acquisition
cash flow is recognized in profit or loss against an increase in the Liability for Remaining Coverage (LRC) related to the insurance contracts.

Separation of components

The Group evaluates its products to determine
whether it is comprised of components which are distinct and need to be separated and accounted for by applying other accounting standards.
When these non-insurance components are not distinct, they are accounted for jointly with the insurance component. The Group evaluated
the contracts under the scope and concluded that there are no components to be separated.

Components of investments and underlying
assets

The Group defines an investment component
as the amount that the insurance contract requires the entity to repay to the policyholder in all circumstances, regardless of the occurrence
of an insured event.

The Group also defines an underlying asset
as the item that determines some of the amounts payable to the policy holder. Underlying items may comprise any number of items: for example,
a reference portfolio of assets, the entity's net assets, or a specific subset of the entity's net assets.

Nevertheless, the Group has no distinct investment
component in its insurance portfolio as stated above, it has insurance products with non-distinct investment company.

The Group also has contracts with obligations
linked to the underlying assets