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BVH - Math reserves jump, draining profitability - Earnings Flash

BVH released its 9M 2017 results, reporting Y-o-Y net profit growth of 18%. We had expected a higher reserve requirement on account of modifications in math reserve calculations introduced recently, but the actual reserve requirement came in slightly ahead of our forecast. Net profit was 8% below our expectations. Earnings volatility has historically been higher for Q4 due to reconciliation charges, but we have a normalized view on Q4 2017 estimates.