Company: BBD
Filing Date: 2025-03-31
Form Type: 20-F
Source: 0001292814-25-001244
Chunk: 52

Company: BANK BRADESCO
Filing Date: 2025-03-31
Form: 20-F
Item: Item 3
Chunk 52
---
 non-performance by financial institutions or transactional counterparties, could adversely affect our ability to finance our assets.
 Events involving reduced or limited liquidity, defaults, non-performance or other adverse developments that affect financial institutions or other companies in the financial services industry generally, or concerns or rumors about any events of these kinds, have in the past and may in the future lead to market-wide liquidity problems. The economy plays a central role in market dynamics and, by extension, in the banking industry. There are currently certain domestic and international issues that may affect the default rates and liquidity of institutions. For example, the market is closely monitoring the initial actions of Donald Trump’s administration. This comes as economic data suggests resilient inflation and stable interest rates in the United States. In addition, statements by the new president about the occupation of territories, such as Canada, Greenland and Panama add new uncertainties to the geopolitical scenario. Europe is signaling the beginning of an interest rate-cutting cycle, despite a backdrop of economic slowdown and political instability continuing to dominate key countries in the region. In Brazil, the deterioration of expectations across the main macroeconomic metrics and an ongoing fiscal crisis remain central concerns. The situation is aggravated as the government is shifting its focus to 2026 elections, further decreasing the likelihood of fiscal austerity measures and leaves room for actions that further strain public accounts. Any of these factors, or any other impacts resulting from the factors described above or other related unforeseen developments, could have a material adverse effect on our liquidity.
 
3.D.20.04 Insurance risk
 Insurance risk is the risk arising from an adverse economic situation which was not expected by the insurance company at the time of underwriting the insurance policies, in their commercial conditions, and the uncertainties that exist when estimating provisions. It includes the risk of having to make emergency contributions to cover shortfalls in pension funds managed by Closed Supplementary Pension Entities (EFPC), for which we became responsible following certain business acquisitions.
 
3.D.20.04-01 Our losses in connection with insurance claims may vary from time to time. Differences between the losses from actual claims and underwriting and reserving assumptions and the related insurance liabilities may have an adverse effect on us.
 The income from our insurance operations depend significantly upon the extent to which our actual claims are consistent with the assumptions we used to assess our potential future policy and insurance liabilities and to price our insurance products. We seek to manage the insured risks, within our limits of responsibility and price our insurance products based on the expected payout of benefits, calculated using several factors, such as assumptions