Porto Seguro : Investor News – Market Share Auto 04M18

Porto Seguro Investors News (57) - Auto Market Share 4M18

Dear Investors,

Recently, the regulatory agency (Susep) has released Brazilian auto insurance results for April, 2018.

This year, the regulator changed the way of accounting, affecting earned premiums and expenses ratios.

The Initial Hiring Costs, which allowed an acceleration of earned premiums until December/2017, will be accrued as Deferred Acquisition Costs as of 1/1/2018, following the same appropriate system for the results according to the contract risk length (pro rata).

The consequence is a reduction of earned premiums, which led to an increase in loss ratio, other operational expenses and taxes. The exception is the G&A, which decreased mainly due to the offsetting of the equivalent part of the deferral, in order to balance the accounting. The impact in Porto Seguro is an increase of 2 p.p. in the loss ratio and a decrease of approximately 3 p.p. in G&A compared to the former rule.

Below the top players results:

AUTO - 4M18 vs. 4M17

Market Share Market Share (Var. p.p.) Premiums Growth

28,0%

0,4 9,7%

12,7%

0,1 8,7%

9,7%

1,1 22,5%

8,7%

0,1 9,4%

7,6%

1,0 23,7%

2,4%

-1,3 -30,0%

- 8,1%

Insurer
Porto Consolidated
Porto Seguro + Itaú Auto¹
Mapfre + BB
Bradesco Auto/RE
Tokio Marine
Azul Seguros
Sulamérica
HDI
Liberty
Allianz
Sompo Seguros
Zurich
Market
Insurer
Porto Consolidated	27,3%	0,1	16,4%
Porto Seguro + Itaú	19,2%	-0,3	14,1%
Mapfre + BB	13,1%	0,6	21,5%
Bradesco Auto/RE	12,3%	-0,2	13,9%
Tokio Marine	9,0%	0,7	25,7%
Azul Seguros	8,0%	0,4	22,2%
Sulamérica	9,1%	0,6	24,4%
HDI	7,8%	-0,8	5,1%
Liberty	7,6%	1,0	33,9%
Allianz	4,8%	0,0	15,4%
Sompo Seguros	2,3%	-1,5	-29,6%
Zurich	1,2%	-0,1	8,1%
Market	100,0%	-	15,9%

Loss Ratio	Loss Ratio (Var. p.p.)
55,5%	-2,6
54,7%	-1,6
75,2%	6,2
63,8%	-1,9
58,4%	-4,0
57,6%	-5,8
62,5%	-6,8
72,1%	-0,3
59,4%	-3,2
66,6%	-2,6
65,2%	-6,6
72,6%	-2,1
63,1%	-2,0
AUTO - April 18 x April 17
Market Share Market Share (Var. p.p.) Premiums Growth	Loss Ratio	Loss Ratio (Var. p.p.)
55,4%	3,2
54,4%	5,3
67,4%	1,7
64,3%	-2,0
56,4%	-4,2
57,8%	-2,6
64,0%	-0,9
70,1%	-0,4
63,3%	4,6
68,7%	2,4
67,8%	2,8
66,6%	-3,3
62,5%	1,0

19,3%

-0,4 6,1%

10,7%

-1,0 -0,8%

8,8%

0,8 18,8%

8,6%

0,0 7,8%

5,1%

0,1 9,3%

1,4% -

0,0 9,9%

¹ The Company started in the fourth quarter of 2016 the plan for migrating the auto polices issues from Itaú Auto e Residência to Porto Seguro Cia Company, which is now operating the brands Porto Seguro and Itaú Auto. The migration is going to be done gradually aiming to improve processes and systems synergy preserving both brands.

Kind Regards,

Relação com Investidores / Investor Relations - Tel.: (+55) 11 - 2393-7092 Porto Seguro -http://www.portoseguro.com.br