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São Paulo, April 26, 2023 – Lavoro, the first agricultural inputs distributor in Latin America to be listed on Nasdaq, the American stock exchange, announced today that it has closed a partnership with Brasilseg, the insurance company of BB Seguros group, and will now offer agricultural insurance solutions to Brazilian rural producers. The insurance broker Agrotech and the insurance platform Agristamp will be responsible for facilitating the negotiations carried out between Lavoro and its clients.
The partnership reflects Lavoro’s expansion plan, which aims to consolidate a platform with the best integrated financial services for farmers, entering a little explored market in the country.
“In recent years, we have observed a relevant growth in the demand for insurance services within rural properties. One of the reasons for this advance is sudden climate change, which is extremely damaging to crops. Lavoro, which has already been offering products and services essential to ensure the productivity and sustainability of farmers throughout Brazil and Latin American countries, seeks to offer an even more robust package of solutions to its customers, supporting them in the pursuit of perenniality and financial health of their business,” says Ruy Cunha, CEO of Lavoro.
Lavoro now offers the Flex Agricultural insurance, which has productivity coverage for soybean, corn and wheat crops. “The partnership between BB Seguros and Lavoro is aligned with our strategy of diversification of distribution channels, where we hope to expand our branch of business beyond BB network, increase our market share and bring more capillarity in delivering solutions to customers through partners,” explains Marcelo Lourenço, Commercial, Marketing and Customer Director at BB Seguros.
The insured producer can still choose to pay in cash or on credit. “The Lavoro customer who closes a Barter negotiation, may pay the insurance value in installments throughout the transaction, which is a differential,” says the CEO of Lavoro.
“We believe that rural insurance is an important protection mechanism for producers to guarantee their investments against weather adversities, paying off their financial obligations, such as Barter operations, for example, and carrying on with their activities smoothly,” explains Ricardo Sassi, director of Agristamp, who will handle all the technical and operational part of the negotiations, together with Agrotech.
“Lavoro’s professionals will also have Agristamp’s platform at their disposal, which will guarantee a fast, simple, and intuitive sales process,” adds Cunha.
Besides the Rural insurance, the Lavoro customer can also purchase credit insurance, which aims to make possible the payment, total or partial, of the rural credit operation or commitment assumed by the producer in case of natural or accidental death. The commercialization of insurance by Lavoro will be available in all of the company’s points of sale in Brazil, either in the company’s physical stores or through the field service of the company’s commercial team.
Rural insurance on the rise in Brazil
According to the survey conducted by the National Confederation of Insurance Companies (CNseg), the Rural insurance paid out more than R$10 billion in indemnities to producers in 2022, representing an increase of 47.1% over the previous year. In parallel, collections totaled more than R$13.4 billion in the same period, a growth of 39.5% compared to 2021.
Rio Grande do Sul, Paraná, and São Paulo were the states that most sought protection in 2022, respectively. For 2023, the entity projects an additional 7.3% growth in the sector.
Forward-looking Statements
Certain statements made in this press release are “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the use of words such as “goals,” “estimate,” “plan,” “project,” “forecast,” “intention,” “will,” “expect,” “anticipate,” “believe,” “seek,” “aim,” or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances beyond Lavoro’s control. Lavoro’s actual results may differ materially from those stated or implied in the forward-looking statements due to a number of factors; including, but not limited to, the outcome of any legal proceedings that may be brought against Lavoro; the ability to maintain the listing of Lavoro’s shares on Nasdaq; the price of Lavoro’s stock may be volatile due to a variety of factors, including changes in the competitive and regulated industries in which Lavoro operates; variations in operating performance among competitors, changes in laws and regulations affecting Lavoro’s business; Lavoro’s inability to meet or exceed its financial projections and changes in its capital structure changes in general economic conditions, including as a result of the COVID-19 pandemic; the ability to implement business plans, forecasts and other expectations, changes in domestic and foreign business, market; financial, political and legal conditions; the outcome of any potential litigation; governmental and regulatory proceedings, investigations and inquiries; costs related to being a public company and other risks and uncertainties indicated from time to time in any annual report on Form 20-F filed by Lavoro and in the company’s other filings with the U.S. Securities and Exchange Commission. These forward-looking statements should not be taken as representations of Lavoro’s valuations as of any date after the date of this press release. Consequently, undue reliance should not be placed on forward-looking statements.
About Lavoro
Lavoro is the largest distributor of agricultural inputs in Brazil and the first in Latin America to be listed on Nasdaq, the American stock exchange, under the tickers “LVRO” and “LVROW”. With a complete portfolio of products and services, the company empowers farmers to adopt innovative technologies and boost productivity. Founded in 2017, Lavoro has a wide geographic presence, operating in Brazil, Colombia and Uruguay, serving about 72,000 customers, through its physical presence, in its more than 210 stores distributed in Latin America and with a team of more than 1,000 technical sales consultants, and digital, with its marketplace. Learn more about Lavoro at: https://www.lavoroagro.com/
Press Information:
Hill + Knowlton Brazil
Ana Lívia Lopes | + 55 11 98845-7142
Gisele Gomes | + 55 11 99103-0946
Thiago Salles | +55 11 95602-8627 [email protected]
About Brasilseg
Brasilseg is the insurance broker of the BB Seguros group, a holding company that concentrates the insurance, pension plan, capitalization, and dental plan businesses distributed by Banco do Brasil in its physical and digital channels. Its operations are concentrated in the Life, Housing, Rural, and Massified (Residential, Business, and Condominium) lines, and it is the leading national insurer in the lines in which it operates. With revenues of R$ 12 billion in 2021, it has approximately 1,900 employees distributed between São Paulo and Franca, where its Relationship and Business Center is located.
Press Information:
Eric Paraense
(11) 9 9838-4982
Danilo Fernandez
(11) 9 4869-8601
About Agristamp
Agristamp is the first 100% digital Insurtech in the contracting of agricultural insurance in a fast and simple way, connecting the whole chain involved, such as rural producer, insurance companies, financial market, marketplaces, brokers, input and seed industries, and their distributors. The platform performs checks such as agricultural zoning, location of fields, socio-environmental compliance, monitors crop evolution via satellite, among other tools, bringing greater security to the process, and expects to transact in its hub over the next three years R$1.3 billion.
Learn more at https://agristamp.com.br/.
About Agrotech
Agrotech is a insurance broker connected to Agristamp’s ecosystem, focused exclusively on the commercialization of agricultural insurance with specialists in insurance and agronomy, to technically support the rural producer in the contracting of his weather risk policies, bringing more security to his indemnities. Learn more at: https://www.agrotechseguros.com.br/home.