CXSE3 Caixa Seguridade

Caixa Seguridade Participações S.A. is a holding company in the insurance segment created on May 21, 2015 as a wholly owned subsidiary of Caixa Econômica Federal, with the purpose of concentrating under a single structure the parent company’s stakes in insurance, open private pension plans, capitalization bonds, consortia, brokerage and related activities. The company’s shares are traded on B3 under the ticker CXSE3. The creation of Caixa Seguridade stems from legal authorization for the creation of Caixa subsidiaries, as provided for in Law No. 11,908/2009, and is part of a corporate restructuring process that involved the transfer of stakes from CaixaPar to the new holding, including CNP Seguros Holding Brasil S.A., PAN Corretora de Seguros Ltda. and Too Seguros S.A. Since then, the company has coordinated the set of insurance-related businesses linked to the Caixa ecosystem, succeeding a trajectory begun more than five decades ago by the parent company in offering insurance and financial protection products.

Caixa Seguridade’s business model is based on its role as an investment holding company, focused on the strategic management of investments in companies operating in various insurance segments. The company manages the relationship of its subsidiaries, associates and other investees with the distribution channels of Caixa Econômica Federal and its partners, particularly within the bancassurance model. In this arrangement, Caixa Seguridade coordinates, together with Caixa’s management areas, the commercialization strategies for insurance, pension, capitalization, consortia, assistance and brokerage products offered through the banking channel. Earnings generation comes mainly from three fronts: equity income from operating investees, revenue from access to the distribution network and use of the Caixa brand, and brokerage and intermediation revenue from insurance products through its own brokerage firm.

Caixa Seguridade’s operations cover, through its investees, a diversified portfolio of protection and accumulation products. In the insurance segment, the company participates in businesses that offer life and personal accident coverage, credit life insurance associated with loan operations, mortgage insurance in the MIP (death and permanent disability) and DFI (physical damage to property) components, as well as property insurance such as auto, residential, commercial and engineering risks. In open private pension plans, products are offered in the PGBL and VGBL modalities, aimed at both individuals and legal entities, with a focus on building long-term reserves. In capitalization, the investees structure bonds in which part of the payments forms redeemable capital at the end of the contractual term, while another part funds sweepstakes and operating expenses. The group also operates in the administration of consortia for the planned purchase of real estate and vehicles, with no interest charges, and in assistance services linked or not to insurance, such as towing, locksmith and emergency repairs, in addition to insurance brokerage carried out by Caixa Corretora and Pan Corretora for Too Seguros products.

Caixa Seguridade’s operating structure combines investments in different specialized companies. The company holds a significant stake in CNP Seguros Holding Brasil, which in turn controls companies such as Caixa Seguradora, responsible for offering non-life and life insurance, and Youse Seguradora, focused on digital operations in property and casualty and personal insurance, which remained in a pre-operational phase until the end of 2024, with policies still issued by Caixa Seguradora. CNP Seguros also controls Caixa Seguradora Especializada em Saúde, authorized by ANS to operate in the health and dental segments, whose board of directors decided in 2023 to seek the shutdown of the health operation. Other companies linked to the conglomerate include firms in insurance technology and assistance, as well as stakes in brokerage and insurance solutions companies. Caixa Seguridade also maintains investments in specific companies for the operation of mortgage insurance, pension and capitalization products tied to the Balcão Caixa, such as Caixa Residencial, Caixa Vida e Previdência, Caixa Capitalização, Caixa Consórcios and Caixa Assistência.

From an economic standpoint, Caixa Seguridade organizes its activities into three segments: Insurance, Distribution and Run-off/Open Market. The Insurance segment encompasses investments in businesses developed in partnership with strategic groups to operate at the Balcão Caixa, including insurance, pension plans, capitalization, consortia and assistance. The Distribution area concentrates revenue related to managing access to the distribution network and use of the Caixa brand, as well as brokerage and intermediation of insurance products. The Run-off/Open Market segment aggregates operations in which the former partner, such as CNP Seguros for certain portfolios, manages portfolios in runoff or businesses conducted outside the Caixa channel. In 2024, operating revenue totaled just over R$ 5 billion, with emphasis on the contribution from the Distribution segment, which accounted for a relevant share of revenue, alongside the lines of mortgage, credit life, life, residential, pension, capitalization, consortia and assistance insurance.

Caixa Seguridade’s competitive positioning is directly tied to the Caixa Econômica Federal ecosystem, which has the largest client base in the Brazilian banking system and one of the most extensive service networks in the country. The company holds exclusive rights, until 2050 and renewable while it remains under Caixa’s control, to access the base of current and savings account holders, to economically exploit the “Caixa” brand and to use the entire distribution network of the financial institution, including its own branches, lottery outlets, banking correspondents, digital channels and other service points. This exclusivity model enables Caixa Seguridade’s operating companies to access a base of more than 150 million clients, boosting cross-sell of insurance, pension and other protection products. In parallel, Too Seguros primarily uses Banco PAN’s banking channel, also supported by a vast network of correspondents and multi-brand stores to distribute its products.

Caixa Seguridade operates in a heavily regulated environment. As a publicly traded company registered in category A, it is subject to the rules of the Brazilian Securities and Exchange Commission (CVM) and, because it is controlled by a federal government-owned company, also to the regime of the State-Owned Companies Law, Decree No. 8.945/2016, CGPAR resolutions and SEST guidelines, which address corporate governance, internal controls, transparency, bidding and contracts. Its operating investees are subject, depending on their business line, to supervision by the National Council of Private Insurance and the Superintendence of Private Insurance for insurance, capitalization and reinsurance; by the National Monetary Council and the Central Bank of Brazil on financial matters; and by the National Supplementary Health Agency with respect to health and dental plans. This regulatory framework is designed to ensure the financial soundness of companies, consumer protection and the stability of the insurance and pension market, directly influencing the product structure, investment policy and risk management of Caixa Seguridade’s subsidiaries and associates.

In terms of governance, Caixa Seguridade adopts a corporate structure aligned with the requirements applicable to controlled federal state-owned enterprises, with boards of directors and technical committees responsible for monitoring the decisions of investee companies, as well as evaluating new investments, corporate restructurings and the formation of strategic partnerships in the insurance area. This governance seeks to reconcile the interests of the parent company Caixa with those of minority shareholders of the company listed on B3, while ensuring adherence to public policies and the risk management guidelines of the conglomerate. The company also operates in conjunction with international partners, such as the French group CNP Assurances, particularly in life and pension insurance, which adds elements of technical cooperation and sharing of market practices in the management of its long-term businesses.

Although Caixa Seguridade’s main focus is on managing equity stakes and coordinating the distribution of insurance products, environmental, social and governance topics tend to be considered both from a regulatory perspective, given the supervised nature of the sector, and under the guidelines of its parent company, which operates as a federal public bank with a significant social role. Risk underwriting policies, mortgage and credit life insurance products related to Caixa’s mortgage and payroll loan portfolios, as well as the nationwide reach of its service network, place the company in discussions on financial inclusion, income protection and support for low-income segments through protection and accumulation solutions. These aspects, together with the transparency obligations imposed by the CVM and the State-Owned Companies Law, shape the governance environment in which Caixa Seguridade conducts its business and reports its performance to CXSE3 shareholders and other participants in the Brazilian capital markets.