Porto Seguro S A : 1Q21 Earnings Release

Earnings Release

1Q21

Index

Main Highlights ..................................................................................	0 3
Message from the Board ...................................................................	0 4
Operational and Financial Highlights ................................................	0 5
Insurance - Results and Ratios ..........................................................	0 6
Insurance Vertical ..............................................................................	0 8
Insurance Vertical - Auto ...................................................................	0 9
Insurance Vertical - P&C ...................................................................	1 0
Insurance Vertical - Life and Pension ................................................	1 1
Financial Businesses Vertical .............................................................	1 2
Financial Businesses Vertical - Credit Card and Financing ...............	1 3
Financial Businesses Vertical - Financial Risks ..................................	1 4
Financial Businesses Vertical - Consortium .......................................	1 5
Healthcare Vertical ............................................................................	1 6
Healthcare Vertical - Health and Dental ...........................................	1 7
Services Vertical .................................................................................	1 8
Financial Results ................................................................................	1 9
Investment and Capital Adequacy ....................................................	2 0
Market Indicators ..............................................................................	2 1
ESG - Environmental, Social and Governance Factors ......................	2 2
Financial Statements .........................................................................	2 5
Revenues, Indicators and Results ......................................................	2 8
Appendix ............................................................................................	2 9

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1Q21 Results

M A I N H I G H L I G H T S 1 Q 2 1 ( v s . 1 Q 2 0 )

REVENUES

Total Revenues1 R$ 4,847 million +6.8%

Insurance

R$ 3,392 million +6.6%

Financial Businesses R$ 774 million +7.8%

Healthcare

R$ 524 million

+5.1%

Services

R$ 156 million

+11,0%

EARNINGS		RATIOS
Total Net Earnings1		ROAE1
R$ 296.6 million		R$ 14.7%
+49.0%		+2.4 p.p.
Insurance		Combined Ratio (Insurance)
R$ 146.6 million	92.3%
+11.1%		-1.8 p.p.
Financial Businesses		G&A+O.E. (Insurance)2
R$ 100.9 million	15.3%
+9.7%		-0.3 p.p.
Healthcare		Total Loss Ratio
R$ 28.6 million	50.5%
-22.3%		-2.1 p.p.
Services		Total NPL
R$ -0.5 million	4.0%
-68.8%		-0.8 p.p.

1 Recurringresults (excluding revenuesand results from the divestmentof the ResidentialMonitored Alarm portfolio in 1Q20), without Business Combination;

2 Excluding expenses related to donations and incentives to social programs (including "Meu Porto Seguro"program)to face the impacts of the Covid-19pandemicon society.

M A I N R E S U L T S

Main Results	1Q21	1Q20	%/p.p.	4Q20	%/p.p.
(R$ million)
Operational Results	369.4	421.2	-12.3%	310.0	19.2%
Financial Results	193.7	(1.5)	-	299.9	-35.4%
Earnings before Income Tax / Social	563.1	419.7	34.2%	609.9	-7.7%
Contribution and Profit Sharing
Income Tax / Social Contribution	(201.1)	(151.1)	33.1%	(163.3)	23.1%
Effective Tax Rate	40.0%	40.0%	0.0	28.6%	11.4
Profit Sharing	(67.3)	(42.1)	59.9%	(39.3)	71.2%
Net Earnings with Business Combination	294.7	226.5	30.1%	407.3	-27.6%

Net Earnings w/o Business Combination	296.6	228.4	29.9%	409.2	-27.5%
Recurring Net Earnings (w/o Business	296.6	199.1	49.0%	408.7	-27.4%
Combination)
Average Shareholder´s Equity w/o Business	8,074.5	7,411.4	8.9%	8,168.4	-1.1%
Combination
ROAE w/o Business Combination	14.7%	12.3%	2.4	20.0%	-5.3

*Excluding results from the divestment of the Residential Monitored Alarm portfolio in 1Q20, without BusinessCombination.

Porto Seguro S.A.

B3: PSSA3

Sector Insurance

Segment: Novo Mercado

Market Indicators

Share Price: R$ 46.98 (mar/21)

Variation (last 12 months): +4.58% Number of Share in the Free Float: 90,982,205

Market Cap: R$ 15,1 bi

Earnings Release 1Q21

May 03rd,2021 (before trading hours)

Conference Call

May 05th,2021

10:00 am (EDT) | 11:00 am (BRT) In Portuguese and English (Simultaneously Translated)

Telephone:

[phone]

[phone] Code: Porto Seguro

Link for webcast in IR website: ri.portoseguro.com.br

3

Message from the Board

1 Q 2 1

Porto Seguro achieved robust results in the first quarter of 2021, showing business growth in all verticals (Insurance, Financial Businesses, Healthcare and Services), in addition to solid operating and financial results, leading to a 49.0% increase in recurring net earnings1. The Company has evolved on segments that contribute to achieving the strategic objectives of leveraging the growth of the client base, improving the consumer experience and promoting increasing operational efficiency.

When considering all Insurance businesses, the combined ratio reached 92.3% in the quarter (-1.8 pp vs. 1Q20), mainly due to the reduction in Auto insurance claims (-6.1 pp vs. 1Q20), benefited from the improvement in underwriting and risk pricing models, and the reduction in the frequency of claims due to the pandemic. The administrative and operational expenses ratio, excluding expenses and incentives to social programs to combat the impacts of the pandemic on society (including "Meu Porto Seguro" program), improved 0.3 p.p. in the quarter (vs. 1Q20), reaching the best level for a first quarter in the historical series of the last 10 years, due to investments in technology and improvement of processes to increase operational efficiency.

In the Insurance vertical, premiums grew 6.6% (vs. 1Q20), leveraged mainly by the increase in Auto and P&C insurance premiums. The Auto insurance portfolio increased by 6.7% in premiums written and by 124 thousand vehicles in the portfolio compared to 1Q20. P&C insurance premiums increased 8.5% (vs. 1Q20) and Life insurance premiums grew 2.6% (vs. 1Q20), with the great performance of the Individual Life segment.

The Healthcare vertical premiums and revenues lifted up 5.1% (vs. 1Q20). Health insurance premiums increased by 4.7% in the quarter (vs. 1Q20), growing 34.3% in the number of insured companies . The Dental Insurance reached 651k insured lives, an expansion of 7.6% in relation to the same period of 2020.

In the Financial Businesses vertical, the loan portfolio reached R$ 10.4 billion at the end of the quarter, a growth of 29.0% in relation to 1Q20, obtaining a 16.2% increase in recurring revenues (vs. 1Q20), presenting a double-digit growth in the main business lines, highlighting the 39.1% expansion in the Financing portfolio (vs. 1Q20) and the 29.7% growth in Consortium revenues (vs. 1Q20). Effective management of the loan portfolio and risk mitigation actions contributed to a reduction in delinquency (NPL +90 days), which reached 4.0% at the end of 1Q21, an improvement compared to both 4Q20 (-0.4 pp) and 1Q20 (-0.8 pp), remaining below the average even when compared to periods prior to the pandemic.

In the Services vertical, recurring revenues grew 21.9% in 1Q21 (vs. 1Q20), highlighting the Carro Fácil business, which is already a profitable operation and grew 25.2% in the quarter (vs. 1Q20), reaching 7.4k active contracts (+17.5% vs. 1Q20), and also the 53.9% expansion of Porto.Pet's revenues (name of the new brand in replacement for Health for Pet). The Services vertical also has other products synergistic to Porto Seguro's business and high potential for growth, such as Porto Cuida, Porto Faz and Reppara!.

The financial results reached R$ 193.7 million in the quarter, with a return on financial investments (ex-pension plan) of 2.36% in the period (equivalent to 488% of the CDI for the period). This result is mainly due to allocations in inflation- linked securities, equity and hedge funds.

Recurring net income reached R$ 296.6 million in 1Q21 (+ 49.3% vs. 1Q20), resulting in a ROAE of 14.7% pa in the quarter (+4.0 pp vs. 1Q20). Excluding the effect of capital surplus and considering a remuneration of 100% of the CDI for investments, the annualized return on equity would have been 20.2% in 1Q21.

In the innovation front, important initiatives were launched in

1Q21 for Porto Seguro's strategic objectives, such as "Bllu", the

first monthly subscription auto insurance of the Company, which offers a product that is easy to purchase, with essential benefits and coverage and the potential to leverage the growth of the Company's client portfolio and contribute to increasing the insurance penetration in Brazil. Another new product is "Tech Fácil", Porto Seguro's smartphone subscription service. There was also the rebrand of Health for Pet, which is now Porto.Pet, that was involved in an agreement with Petlove, the largest online pet shop in the country, to transfer the pet insurance operations to Petlove and in exchange receiving a 13.5% stake in the equity of the Company (the transaction has yet to be approved by CADE). Porto Seguro has also developed and is already operating on an experimental stage a SuperApp that improves the user experience and already concentrates products and services used by more than 75% of its customers. In addition, Porto Seguro also continues to advance the customer service via WhatsApp, with 40% of the total assistance already going through this channel, which in addition to improving the customer experience, also contributes to operational efficiency gains.

On the ASG front, in 1Q21 it is highlighted some initiatives that have been part of Porto Seguro's history for years, such as the "Associação Crescer Sempre", the Young Apprentice Program of the Porto Seguro Institute and the Volunteer Program, and also some new initiatives: in the social field, in addition to the closure of the Meu Porto Seguro Program, which positively impacted the lives of more than 20k people, the Quentinhas Project was also launched, which helps society around the Company in this difficult time; in the environmental field, Porto Seguro became part of B3's Carbon Efficient Index (ICO2) and started the Greenhouse Gas inventory process; and in the

governance field, Porto Seguro was certified by the "Women on Board" Organization for having two women on its Board of Directors.

Porto Seguro once again thanks its employees, brokers, service providers, clients, shareholders, partners, investors and all other stakeholders for their dedication and trust in the Company and remains firm in the mission to be even more a safe harbor for everyone (Porto Seguro means "safe harbor" in Portuguese).

1 Excluding results from the divestment of the Residential Monitored Alarm portfolio in 1Q20, without BusinessCombination;		4
2 Excluding revenues from the ResidentialMonitored Alarm busines, divested in 1Q20

Operational and Financial Highlights

1 Q 2 1

11.5 million human	21.3 million digital	317k roadside	524k home repair	40% of services for cars and
assistance services	services in 1Q21	homes generated via
customer services	cutomer services
in 1Q21		WhatsApp in 1Q21
in 1Q21	in 1Q21

8.4 million	13k	35k independent	11k exclusive service
providers
clients	employees	brokers

Total Revenues

	(R$ billlion)		18,2		18.4		18.9						(R$ million)				4,863	5,309	4,846
	16.5	17.2			0.5						4,539		4,235		141
	0.6		0.5									131	156
	0.5										517
	0.5	1.7		1.8		2.0						140						495		524
	1.5	2.3		2.5		2.9								127		808
	1.4	2.0								499				737	774
	1.8																	718			494
																					683
	12.8	13.2	13.7		13.6	13.5						3,182		2,931		3,501	3,843	3,392
	2016	2017	2018		2019	2020
						Insurance				Financial Businesses			Healthcare		Services
									Net Earnings and Profitability
2,200			19.1%		19.3%	21.6%	(R$ million)
								20.0%	1,000								34.9%				40.0%
	15.5%
	15.1%							1,696
1,700
					1,387						15.0%	800											20.3%	20.0%		30.0%
			1,318														657
																									14.7%	20.0%
1,200														10.0%	600			12.3%
	982							1,099
923	560		700
																409		10.0%
																		358		402
	93	308												5.0%	400
700																								297	0.0%
																		228						204
	830													0.0%	200							308	182
	674	759		686	597
200					229		299				-10.0%
												206
													-5.0%									94	115
														-			(1)						-20.0%
	2016	2017	2018		2019	2020							1Q20	2Q20	3Q20	4Q20	1Q21
(300)		-10.0%	(200)			-30.0%
				Financial Results					Operational Results					Profitability (ROAE % pa)
								Net Earnings per Business Vertical
														(R$ million)						657
									1.696
						1.387																220
			1.318		414											1		402	409
		982	154		300	95											50		35
	923	49												8
		298		78	278						228					23	189	297
	98	105											79
																			21
	39				315
	1	266														37							29
	235																		377			100	101
			848					918						92			271
	622	600		708
														132						138	147
	(33)	(28)	(31)		(15)	(10)						(31)(2)				(6)	(14)(3)	(1)
	2016	2017	2018		2019	2020							1Q20	2Q20	3Q20	4Q20	1Q21
				Insurance			Financial Businesses		Health				Services		Holding

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