Octavio de Lazari: Thank you, Rafael. Good morning. Thank you for joining us. Well, Rafael, regarding the NPL that Firetti mentioned, we have always worked with the negotiation with clients. Comparatively, can I recover? How much can they recover in the past due portfolio? Is it best to sell this portfolio because they can get a bit of price for it. But you will remember that given the interest rates and the interest rates are higher and the portfolios became more difficult because the prices were no longer attractive. This indeed happened, and we did not sell a lot of portfolios because even make businesses, because we would get a better price if we renegotiated. And in credit recovery, you know, you can bring more money in and have better results.
So indeed, we focus more on renegotiations collecting from clients, particularly on that are not very much past due. Because when it’s long past due, we can renegotiate easier, more easily. So the fact that we are now selling the portfolios because the prices were not attractive. And all along, we said that we would make a comparison between the advantages of selling the portfolio and what I can collect internally. So this is a business that has to be profitable or also this will make sense. And so, we are focused more on recovering the loans from our clients, and this is what led to us effect the you yourself mentioned. In addition to improving the modeling, productive modeling to understand and identify the patients that have more ability to pay.
And so, we can recover their loan, and this is about NPL. Regarding the insurance company, Ivan Gontijo, the CEO of the Insurance Group is here. Ivan would you like to comment on Rafael question?
Ivan Gontijo: Of course. Thank you. Rafael, thank you for the question. And based on your question, you mentioned the improvement of our guidance, and the robust balance sheet of the insurance group. Before addressing directly your question, I would like to highlight based on what you said about sustainable growth. Better revenue that is noteworthy, given the point integrated work of co-management among the companies and the several departments of the insurance group. We are market leaders in insurance, pension plans and capitalization bonds. To better results of our operations, very robust sales, 51 billion be around in the first half, a better claims ratio, better mix of products with new products, more tailored to the regions, better processes, aiming to serve our clients better and particularly an improvement of our fundamental Focusing on the people also of the insurance group.
So to your question in the technical provision line item that you mentioned. Well, these are for in addition to the specific contract reserves to face the future commitments of the insurance group, always considering the economic assumption and the actuarial assumption reflecting the best estimate for the portfolios. To give you an idea, the behavior of IGPM influences this line item that you mentioned, this line item of provision. In fact, we always form our provisions based on the best market practices and particularly considering IFRS 17 and the standards in effect Bradesco Seguros or the Insurance Group was established about 40 years ago, and we are always focused on the sustainability of the business and aiming to better serve power clients and the perennial behavior of the insurance operation.
So about to draw your attention to the fact that in the end of July, the insurance group posted BRL340 billion of provisions. So this gives us a lot of comfort. And it gives us peace of mind to continue in the past that this organization decided to start about 40 years ago, and that will continue.
Octavio de Lazari: Thank you, Ivan.
Operator: Thank you, Frade. Next question by Mario Pierry with Bank of America. Mario, please go ahead.
