(The following statement was released by the rating agency)RIO DE JANEIRO, December 10 (Fitch) Fitch Ratings has affirmed the International and National Insurer Financial Strength (IFS) ratings for Bradesco Seguros S.A. (Bradesco Seguros) as follows:--International IFS at 'A-'; Outlook Stable;--National IFS at 'AAA(bra)'; Outlook Stable.KEY RATING DRIVERSThe IFS ratings of Bradesco Seguros are linked to the ratings of its parent, Banco Bradesco S.A. (Bradesco, long-term local currency [LT LC] Issuer Default Rating (IDR) of 'A-'; Outlook Stable). Fitch believes the probability of support by Bradesco would be high, should it be required.Fitch considers Bradesco Seguros as a 'core subsidiary' of Bradesco, therefore its ratings are equalized to those of its parent. This is based on the strategic importance of the insurance operations, which are a key and integral part of the group's business, common branding, and high contribution of Bradesco Seguros to group profits (30% and 31% in September 2013 and 2012, respectively).The ratings also reflect the company's leading position in the Brazilian insurance market, consistent performance, diversified revenue base, strong distribution capacity underpinned by the wide agency network of Bradesco, and comfortable liquidity and capitalization ratios.Fitch expects Bradesco Seguros' premiums and contributions to continue to grow solidly in 2014, even though there was a slight deceleration as of September 2013 (13% year on year and 18% in 2012). The slowdown was in the pension segment, which was affected by the capital market volatility in the third quarter, which has also been the case for its peers. Bradesco Seguros' market share remained broadly stable until September 2013, when life and pension segment continued to be the largest contributor to net earnings (61%), followed by health (17%), capitalization plans (saving bonds with a lottery feature) (12%), and others (10%).Fitch expects Bradesco Seguros' profitability to remain sound. In line with Fitch's expectations, Bradesco Seguros' net loss and combined ratios returned to historical levels (68% and 91% in June 2013), after having peaked in 2012 due to a one-off adjustment to technical reserves. Similar to its competitors, its financial income fell significantly in the first half 2013, although it is likely to recover given the rise in interest rates since April 2013. In June 2013, there was a significant decline in Bradesco Seguros' equity (BRL15.0 billion and BRL18.5 billion, in June 2013 and 2012, respectively), due to negative mark-to-market (MTM) adjustments to its available for sale securities, which fully reversed the positive MTM adjustments of 2012. In the short term, recoveries will be limited given the expectations of further interest rate rises. Volatility in equity is likely to continue, but Fitch expects liquidity to remain adequate.Bradesco Seguros and its subsidiaries continue to comfortably meet minimum capital requirements, despite the fall in equity and higher leverage (in June 2013, liabilities-to-equity rose to a high 9.2 times from 7.2x and 8.6x, in 2012 and 2011, respectively). The large share of life and pensions technical reserves, which drives leverage upwards, remained unchanged at 87% of total technical reserves, in June 2013.RATING SENSITIVITIESBradesco Seguros' ratings are linked to those of Bradesco. Therefore, any change in the bank's ratings would affect the insurer's ratings, as would a change in its willingness to provide support, which Fitch considers highly unlikely.Contact:Primary AnalystEsin Celasun Associate Director+55-21-4503-2626Fitch Ratings Brasil Ltda., Praca XV de Novembro, 20 - 401 B, Rio de Janeiro, RJ, BrazilSecondary AnalystMaria Rita GoncalvesSenior Director+55-21-4503-2621 Committee Chairperson Julie BurkeManaging Director+1-312-368-3158 Media Relations: Elizabeth Fogerty, New York, Tel: +1 (212) 908 0526, Email: elizabeth.fogerty@fitchratings.com.Additional information available at '
  www.fitchratings.com'
  or '
  www.fitchratings.com.br'.
  Applicable Criteria and Related Research:--Insurance Rating Methodology (November 2013),--National Scale Ratings Criteria (October 2013),--Rating FI Subsidiaries and Holding Companies (August 2012).Applicable Criteria and Related Research: Insurance Rating Methodology -- Amended
  http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=723072
 National Scale Ratings Criteria
  http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=720082
 Rating FI Subsidiaries and Holding Companies
  http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=679209
 Additional Disclosure Solicitation Status 
  http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=811249
 ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.