By Ben Miller
Bradesco Seguros investor perception study: Extending coverage
Brazil’s insurance sector is tipped to grow and consolidate say investors and analysts, who would like to see more direct ways of playing the sector
When Banco do Brasil raised $5.74 billion from the IPO of its
insurance business in April, it did more than just push aside
doubts about the Brazilian equity issuance market. The
carve-out of the bank’s insurance business, priced
at the top of its range and with its overallotment options
fully sold, also clearly underscored several trends in
Brazil’s growing insurance business.
Insurers have extended their reach across Brazil as a decade
of strong GDP growth and rising incomes has given Brazilians a
few extra reais each to spend on coverage. As incomes rise, the
insurance industry is expected to continue growing,
particularly the life segment, which is undersubscribed when
compared to other areas of coverage in Brazil.
At the same time, the heft of Banco do Brasil’s
insurance business is a function of the bank’s
presence across the country: its vast branch network gives
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