Porto Seguro : Notice to the Shareholders - Dividends and Interest on Capital*

PORTO SEGURO S.A.

Publicly-Held Company | CVM No. 01665-9

Corporate Taxpayer's ID (CNPJ/MF) 02.149.205/0001-69 | State Registry (NIRE) 35.3.001.5166.6

ISIN Code No. BRPSSAACNOR7

Alameda Barão de Piracicaba, No. 618/634, 11º andar, São Paulo/SP

NOTICE TO THE SHAREHOLDERS

PORTO SEGURO S.A. hereby announces to its shareholders that, pursuant to the resolution of the meeting of the Board of Directors held on October 31, 2018, ad referendum of the Annual Shareholders' Meeting, which approved the declaration of interest on shareholders' equity ("ISE") referring to the second half of 2018, to be deducted from the amount of the mandatory dividend related to the 2018 fiscal year, in the amount of two hundred forty-eight million, nine hundred and seventy-five thousand reais (R$248,975,000.00), subject to the following:

1. The gross amount of the ISE corresponds to R$0.77012177 for each of the Company's shares, with withholding income tax of 15% (fifteen percent), except for shareholders who are provenly exempt or immune, resulting in a net ISE of R$0.65460350 per share.

2. The net amount corresponding to this interest will be credited on November 6, 2018, individually to each shareholder based on their final shareholding position on this date (including). As of November 7, 2018, the Company's shares will be traded ex-right to this ISE.

3. The payment date of the ISE will be established at the Annual Shareholders' Meeting of the Company, to be held until April 30, 2019.

São Paulo, October 31, 2018.

Porto Seguro S.A.

Marcelo Barroso Picanço Investor Relations Officer