Institutional Presentation 3Q17

Transcription

1 Institutional Presentation 3Q17

2 SulAmérica at a Glance Solid business model with proven track record Nationwide footprint with more than 7 million clients and expanding geographical reach One-stop shop for financial protection (Insurance, Private Pension, Asset Management and Savings Bonds) Disciplined underwriting, focused on profitability Founded in 1895, SulAmérica is the largest independent Brazilian insurer Strong distribution with largest broker relationship program 30k+ independent brokers High levels of client retention and strong product cross selling potential Client and relationship focus in the value chain 2

3 SulAmérica Highlights Key figures Financial highlights Revenue breakdown Revenues R$16.8 billion 3% 2% 1% 1% Total assets R$21.8 billion Shareholders equity R$5.0 billion 19% R$16.8 billion Net income R$695 million 73% Return on average equity 14.7% Health & Dental Auto Private Pension Life Other P&C Other 3 Note: 2016 figures.

4 SulAmérica History of innovation and sustainable growth Sul América is founded as a life insurer, assuming New York Life Insurance Company s businesses Beginning of P&C activities, with the acquisition of Anglo Sul Americana and the launch of Sul América Terrestres e Marítimos 1913 Savings bonds introduced with Sul América Capitalização (SulaCap) SulAmérica starts its automobile insurance operations Company enters the healthcare business (ASO), with Ford as first client 1970 Foundation of Gerling Industrial (partnership with Gerling Konzern, from Germany) and of SAI (partnership with the Italian Societá Assicuratrice, from Fiat Group) Acquisition of Companhia Bandeirante de Seguros Gerais Acquisition of Brasilpar Administração de Recursos, beginning of asset management operation AND Acquisition of Santa Cruz Seguros and Itatiaia Seguros Partnership in health with Banco do Brasil (Brasilsaúde) is formed SulAmérica s Centenary Acquisition of Iochpe Seguradora Creation of Sul América Multiserviços S.A., a partnership with GMF Group, from Paris Health insurance plans and 24-hour assistance products are launched Beginning of private pension operation through SulaPrev

5 SulAmérica History of innovation and sustainable growth Creation of Seguradora Brasileira de Crédito à Exportação, in partnership with other insurance companies Partnership with BB, starting Brasilveículos and joint venture with Aetna International (health, life and pension) Dutch ING acquires Aetna s stake ING changes ownership to the holding company Distribution partnership with AXA Corporate Solutions SulAmérica s IPO at the BM&FBovespa Exchange Acquisition of Brasilsaúde from and sale of Brasilveículos to Banco do Brasil The history continues Large risks portfolio sale to AXA and mortgage portfolio sale to PAN Joint venture with Healthways SulAmérica celebrates its 120 th anniversary ING sells its remaining 10% stake in a block trade ING sells stakes to IFC (7.8%) and Swiss Re (14.9%) Acquisition of SulaCap Acquisition of Dental Plan and partnership with Caixa in auto insurance

6 SulAmérica s Brand Power Well-known and credible brand Brand Evolution Positioning Providing people with security for life s unexpected events Branding Sponsor of SulAmérica Paradiso s radio and Rio de Janeiro s Convention Center Social media More than 1.3 million followers at Facebook and strong presence in Twitter, YouTube and LinkedIn A vida é imprevisível e, acredite, isso é muito bom. 6

7 SulAmérica s Shareholding Structure Best practices in Sustainability and Governance SULASA Related Persons, Management and Treasury 4.0% 100% Free Float: 70.8% SULASAPAR Others (1) 25.2% 7.8% 14.9% 48.1% (1) Equivalent to 50.3% of total voting shares BEST PRACTICES Associated with national and international organizations that contribute with guidelines, indicators, principles and goals for the management of the sustainability of its business Periodically disclosures its progress in implementing ESG (Environmental, Social and Governance) issues, following the GRI and Integrated Reporting s guidelines 60% of board members are independent Role of Board of Directors supported by 5 statutory committees (Audit, Investment, Compensation, Governance and Sustainability) 7

8 SulAmérica Investment Highlights Why invest in SulAmérica? Favorable sector dynamics Brazil is the largest economy in LatAm and 9 th largest in the world, with a growing population Insurance sector is very resilient and has consistently grown at double-digit rates, with insurance penetration still very low in Brazil Strong and credible brand with resilient business model SulAmérica is one of the strongest brands in the insurance market in Brazil One-stop-shop with diversified business mix (health, auto, life, pension, savings bonds and asset management) and increasing cross-selling capabilities Strong financial profile and operating efficiency Track record of improving operating performance Well positioned to benefit from better economy + industry consolidation Experienced management team and strong Board of Directors Seasoned management team with deep understanding of the insurance market in Brazil Board of Directors with deep knowledge and tradition in the insurance business 8

9 Diversified Distribution Model and Strong Sales Force Solid relationship with distribution network Corporate Affinity Partnerships Retail Large corporate brokers Large volume brokers Financial and retail institutions Independent brokers ~70 corporate brokers Niche players and retail distributors ~20 partnerships with bancassurance 30,000+ independent brokers 90 branches supporting sales & distribution 9

10 Diversified Product Portfolio Huge potential for increasing cross-selling Only 11% of SulAmérica s clients had more than one product % of product cross selling Product Auto Home Corporate Health Dental Pension Life Auto 86.8% 5.0% 0.1% 4.1% 1.0% 0.5% 4.4% Home 31.2% 62.4% 0.1% 4.1% 1.3% 1.0% 6.6% Corporate 4.4% 0.4% 95.3% % Health 5.7% 0.9% % 20.1% 1.2% 8.2% Dental 2.9% 0.6% % 54.3% 1.1% 8.1% Pension 5.1% 1.7% - 8.6% 3.9% 83.4% 7.0% Life 3.0% 0.7% - 3.9% 1.9% 0.5% 91.9% 10 Note: Sep/17 - Numbers in orange represent the percentage of clients that purchase only that specific product.

11 Insurance Market in Brazil Still highly underpenetrated 10.0% Insurance penetration per country (premiums as % of GDP ) 7.3% 6.2% 4.7% 3.9% Brazil is the 9th largest economy in the world but only 39th in terms of insurance penetration Insurance penetration per segment in Brazil Health 23% of population Auto 20% of fleet Life 19% of population Dental 11% of population Home 15% of homes Pension 6% of population 11 Source: Swiss Re, SUSEP, IBGE, Denatran, Fenseg, Fenaprevi and Zurich/Oxford University

12 Secular Growth Trend Insurance sector in Brazil will outgrow other countries In 8 years, Brazil can be the 9 th largest insurance market in the world e # Country, bn Global ranking of primary insurance markets by premium volume # Country, bn # Country, bn 1 USA JAPAN UNITED KINGDOM FRANCE GERMANY ITALY SOUTH KOREA 68 8 CANADA 63 9 SPAIN CHINA NETHERLANDS AUSTRALIA TAIWAN BELGIUM SWITZERLAND 34 1 USA 1,152 2 JAPAN CHINA UNITED KINGDOM FRANCE GERMANY SOUTH KOREA ITALY CANADA TAIWAN AUSTRALIA NETHERLANDS INDIA BRAZIL SPAIN 57 1 USA 1,579 2 CHINA 1,090 3 JAPAN UNITED KINGDOM FRANCE GERMANY ITALY SOUTH KOREA BRAZIL INDIA CANADA TAIWAN AUSTRALIA NETHERLANDS SPAIN Source: Munich Re Economic Research (May/16)

13 Secular Growth Trend Brazilian Insurance sector will benefit from economic rebound Insurance premiums per segment (R$ billion) CAGR: 12.6% Savings Bonds Private Pension Life Other Property & Casualty Auto Health e Insurance industry growth vs. GDP growth 19.0% 14.1% 6.1% 5.1% 10.3% -0.1% 16.4% 7.5% 16.3% 3.9% 18.3% 1.9% 13.3% 3.0% 12.1% 0.1% 11.6% 10.5% 10.2% 0.7% Insurance Premiums Growth GDP Growth (PIB) e -3.8% -3.6% 13 Source: CNseg (considering the average of bull and bear cases for 2017), IBGE & Focus Report (Sep 29, 2017)

14 Favorable Demographics Aging population will boost demand, especially in healthcare Aging population in Brazil (% of population per age range and genre) % over 60 16% over % over 60 Life expectancy at birth (both genders) +30 years Life expectancy at age 65 (both genders) +8 years Source: IBGE

15 Health and Dental

16 SulAmérica Health Portfolio Premium product with several options for customers LARGE CORPORATE Over 100 members Main characteristics Nationwide coverage Broad preferred provider network Comprehensive portfolio Well-being platform (Healthways/Sharecare) Discounts on drugs and vaccines 16 SMALL & MEDIUM ENTERPRISES 3 to 99 members AFFINITY Professional bodies, associations and organizations Annual policies with annual price adjustments Wide range of products for all corporate levels, with different coverages Co-payment programs gaining relevance in the portfolio

17 Market Health Market penetration opportunity Insured members evolution 20% of coverage in 2006 to 23% in 2016 (indexed on 2006) Coverage per State Market SulAmérica Health plan penetration (% of population) 91% 9% 23% 77% > 30% 20%-30% 10%-20% 5%-10% Insured Non-insured 17 Source: ANS (Feb/17) and Census US (2015)

18 Market Dental Market penetration opportunity % of coverage in 2006 to 11% in 2016 Insured members evolution (indexed on 2008) Market SulAmérica Dental plan penetration # dentists per habitants (% of population) (per million people) 1,605 60% 40% 1,206 1,163 1,107 1,085 1, % 89% Insured Non-insured 18 Source: ANS (Feb/17), Credit Suisse Research

19 Market Health and Dental Evolution of private healthcare market Total market revenue and loss ratio (R$ billion and % of total) % 79.7% 82.3% 80.4% 81.6% 84.1% 83.4% 84.2% % % % 80% % 40 70% % Revenue Loss Ratio 19 Source: IESS and ANS (Dec/16)

20 Health Providers Growth Opportunity Increasing investments in the private sector Density of hospital beds (Hospital beds/1,000 people) Density of doctors (Doctors/1,000 people) Brazil Hospital beds evolution (thousand) Public Private 20 Source: CIA (2012; 2013); SUS (Dec/16)

21 Health Private Healthcare Expenses Health plans and hospitals expenses breakdown Health plan operators expenses Hospitalization costs breakdown 16.4% Diagnostics 6.4% Ambulatory care 5.3% 7% 27% Therapies 50.4% Hospitalization 13% Medicines Taxes 7% Daily fees Other 21.5% Doctor visits 19% Doctors fee 27% Material 21 Source: BTG Pactual Research and IESS

22 % of member Health and Dental Market Private Healthcare Industry Consolidation is accelerating Health & dental operators (Mar/17) 1, Q17 Health Operators with members Dental Operators with members Health members & operators Top 5 health & dental operators (Million members Mar/17) (% of revenues (Mar/17) 100% 90% 80% 68% 60% 50% 40% 31% 20% 8% Number of operators % 59.1% 38.3% 39.6% 39.7% 55.9% 57.0% 56.3% 56.7% 56.4% 41.7% 41.9% 43.0% 42.7% 43.3% 60.4% Q17 Health Dental 22 Source: ANS (Mar/17)

23 Health and Dental Market Private Healthcare Industry Profile per type of insurance plan Market Insured members (1) MoM change (1) Coverage rate (2) As of Sep., ,303, % 23% 22,931, % 11% Health & Dental total market members* (million) Q17 Individual Health Corporate Health Affinity Health Dental 23 Source: ANS (Sep/17) *Does not consider other and not informed members in health.

24 Health and Dental Market Market share in revenues HEALTH Top 10 players DENTAL Top 10 players 1 st 14.9% 1 st 35.6% 2 nd 12.2% 2 nd 13.3% 3 rd 9.7% 3 rd 4.7% 4 th 3.3% 4 th 3.7% 5 th 3.2% 5 th 3.1% 6 th 2.6% 6 th 2.6% 7 th 2.5% 7 th 2.5% 8 th 2.3% 8 th 2.5% 9 th 1.6% 9 th 2.2% 10 th 1.6% 10 th 2.0% 54% among the top 10 players 72% among the top 10 players 24 Source: ANS (Mar/17)

25 SulAmérica Health and Dental Overview 2.1 million beneficiaries 20% * Cross selling 894 thousand beneficiaries Technology Referred network App-based reimbursement, referred network, and health insurance card 1.3+ million users 20+ thousand service providers 1,370+ hospitals 3,200+ laboratories Operational highlights 25 thousand birth deliveries 11 million doctor visits scheduled 271 thousand hospitalizations 12 million pre-authorized procedures 5.2 million processed reimbursements 59 million diagnostic tests requested 25 * % of health members which also have Dental insurance Note: 2016 figures excluding beneficiaries and cross selling.

26 SulAmérica Claims Management Initiatives to curb costs and frequency Materials and Drugs Management Sourcing of special materials and drugs, purchasing direct from manufacturers Pre-negotiated prices Results 143 hospitals with price list negotiated for Materials and Drug Management Second opinion protocols and medical board Second opinion: independent review performed by a medical professional to confirm or revise diagnoses and proposed treatments Medical board: group of doctors appointed to set aside disagreements over a treatment Results More patients conducted for second medical opinion per year ~30% savings on direct purchase of materials Increase in non-surgical recommendations and decrease of surgical ones Negotiated process with more than 240 hospitals for direct purchase of special materials and drugs Better diagnostic assertiveness by reducing costs for the insurer and ensuring the best treatment for the insured 26 Note: 2016 figures

27 SulAmérica Saúde Ativa Program Increasingly focused on big data and health management Saúde Ativa in numbers 75 thousand clients monitored +30 thousand well-being evaluations Healthy Aging Initiative patient costs 41% less Chronic Disease Initiative patient costs 40% less Saúde Ativa initiatives Well-being platform Well-being coaching Chronic disease Oncology High-risk management Future mommy Joint Healthy aging Well cared elderly Active back care / In-company back care 27 Note: 2016 figures.

28 SulAmérica Health Management Digital platform Healthways/Sharecare Well-being platform Health consultant Action plan and score system Reminders Virtual library 28

29 SulAmérica Health and Dental Financial and operational highlights Insurance premiums (R$ million) Loss ratio (% of earned premiums) 7, , , , % 12, , % 10, BPS -50 BPS 80.9% 81.2% 81.4% 80.5% 80.1% 81.6% 82.0% M16 9M M16 9M17 Acquisition cost ratio (% of earned premiums) -10 BPS +10 BPS 6.3% 6.2% 6.2% 6.3% 6.4% 6.4% 6.3% 2, Members (thousands of members) 2,668 2,650 2, % 2,897 2, % 3, ,187 1,229 1,186 1,180 1,102 1,116 1, M16 9M M16 9M17 Corporate/Affinity Health SME Health Individual Health ASO Dental 29

30 Auto and Other P&C

31 SulAmérica Auto Portfolio 4th largest auto insurer in Brazil INDIVIDUALS TRUCKS FLEET Coverage Accident, damages, burglary or robbery Liability coverage in the event of damage to 3 rd parties 24-hour assistance Towing and replacement Coverage in Brazil, Argentina, Paraguay and Uruguay Main characteristics National service coverage Segmented line of products (new and used cars, trucks, women, pay-as-you-drive for trucks) Digital policy and mobile APP for services Residential assistance services Large network of referred bodyshops 31

32 SulAmérica Auto Overview Auto highlights Auto APP 1.5 million insured fleet 12 million auto insurance quotes performed per year ~70% of client retention Quotes, schedule repairs, insurance card, 24h assistance 24h 2 million 24hr assistance calls received 35 CASAs SulAmérica s automotive centers 1.9 thousand referred bodyshops 5+ million users reached by SulAmérica brand through the partnership with 32 Note: 2016 figures excluding insured fleet.

33 SulAmérica Auto Financial and operational highlights Insurance premiums (R$ million) -5.1% Loss ratio (% of earned premiums) -640 BPS -70 BPS 2, , , , , , % 2, % 59.7% 60.0% 60.6% 66.9% 66.6% 67.3% M16 9M M16 9M17 Acquisition cost ratio (% of earned premiums) Insured fleet (vehicles - thousands) +20 BPS +130 BPS -0.2% -12.1% 19.3% 21.7% 23.2% 23.6% 23.4% 23.5% 22.2% 1,321 1,441 1,544 1,692 1,689 1,704 1, M16 9M M16 9M17 33

34 Auto Total Market Information Overview Insured fleet (% of fleet) Top 10 players % of total premiums (LTM) 97% 86% 66% 21% 80% 3% 14% Vehicles over 11 years old Vehicles 7 to 11 years old Insured fleet 34% Vehicles 0 to 6 years old Uninsured fleet 79% New Vehicles 20% Total Brazilian Fleet 1 st 27.8% 2 nd 12.1% 3 rd 12.2% Average age of the total fleet: 6.8 years Average age of the insured fleet: 3.4 years 4 th 9.0% 5 th 8.5% Auto insurance industry revenues (R$ billion) -2.3% % th 8.3% 7 th 7.0% 8 th 5.0% 9 th 3.4% 10 th 1.5% H16 1H17 Source: Fenseg / Denatran (2014) / SUSEP (Dec/16 and Aug/17) 95% no top 10

35 SulAmérica Auto Key figures Fleet by age (% of insured fleet) 12.5% 4.9% Fleet by type (% of insured fleet) 6.1% 1.6% 8.4% 25.6% 18.3% 65.6% 57.0% New 1-3 years 4-9 years Other Light vehicles Pickup trucks Motorcycles Trucks Others Insured fleet by region São Paulo State 21.6% 9.6% 22.3% 15.3% 18.6% 12.6% 1,498, , , , , , ,053 São Paulo Capital São Paulo Countryside Rio de Janeiro and Espírito Santo Minas Gerais and Midwest % of fleet South North and Northeast TOTAL 35 Source: SulAmérica (Sep/17)

36 Auto New Vehicle Licensing New auto sales still sluggish Motor vehicles Licensing (thousand) -46.1%; -1.8 million 2,463 2,820 3,141 3,515 3,633 3,802 3,767 3,498 2, % 1,928 2,050 1, % 1, M16 9M17 36 Source: ANFAVEA *Does not include CKD

37 Auto Theft and Robbery Levels remain high in Rio de Janeiro and São Paulo Auto theft and robbery per state (thousand and % YoY) 6.0% -0.1% 9.1% -9.5% 17.9% 9.6% -1.9% -5.6% -1.4% 3.0% 32.7% 23.7% 23.0% 17.1% 15.7% 15.4% 13.0% 3.1% 7.3% 42.7% 35.4% 23.0% 24.0% 14.2% 4.2% -1.1% -5.1% -4.9% -7.0% -7.7% 34.0% 31.5% 22.7% 24.7% 39.8% -1.2% 38.4% -9.3% -3.4% -14.1%-11.7% -9.1% Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Total RJ Total SP %YoY RJ % YoY SP 37 Source: SSP-SP, ISP-RJ (Aug/17)

38 SulAmérica Massified Portfolio Widespread sales distribution and strong cross selling with auto HOMEOWNERS/ HOUSEHOLD 307k homes insured R$62 million in premiums/year SMALL BUSINESS 43k businesses insured R$46 million in premiums/year CONDOMINIUM 37k buildings insured R$70 million in premiums/year 38 Note: Considers the last twelve months.

39 P&C Market Information Overview Revenues* (R$ billion) +8.7% CAGR % H16 1H17 Market share* (% of total revenues; 1H17) Contribution breakdown* (% of total revenues; 1H17) 2.5% 2.9% 3.1% 5.7% 7.5% 9.6% 11.9% 10.1% 23.9% 11.3% 11.5% Porto + Azul Bradesco BB + Mapfre Sompo Seguros Zurich + Santander Caixa Seguros Tokio Marine SulAmérica Allianz Ace +Chubb Others 7.5% 50.3% 42.2% Homeowners Business Condominium 39 Source: Susep (Dec/16 and Jun/17) *Considers only segments in which SulAmérica operates

40 Life, Pension & Asset Management

41 SulAmérica Life Portfolio Overview GROUP AND SME INDIVIDUAL CREDIT LIFE Main characteristics Death, accidental death and/or disability, funeral, critical diseases Launch of new travel insurance, fully online Casualty lump sum product also offered Group plans represent the largest part of the portfolio, but the individual segment is gaining share 12-month contracts, no long-tail risk 2.8 mn insured lives R$421 mn in revenues/year 41 Note: Considers the last twelve months.

42 Life Market Information Overview Premiums (R$ billion) Premium breakdown by insurance line (% of total premiums; 1H17) +11.9% CAGR 10.5% 3.3% % 17.3% 39.8% H16 1H % Group life Credit life Personal accidents Individual Others Market share (% of total premiums; 1H17) Life insurance penetration (insurance penetration as % of GDP; 2015) 33.2% 15.8% Mapfre + BB Zurich + Santander 7.5% 1.4% 9.5% 10.8% 14.7% 14.6% Bradesco + HSBC Caixa Seguros Itaú SulAmérica Others (14 th ) World average: 3.5% 2.1% 2.4% 3.2% 3.5% 2.9% 3.1% 42 Source: Susep (Dec/16 and Jun/17) and Swiss Re

43 SulAmérica Pension Portfolio Overview GROUP PGBL/VGBL INDIVIDUAL PGBL/VGBL Main characteristics Special services for family offices and investment distributors Wide list of funds to fit any profile and tailor-made services for HR departments Management fees of 1.7% or lower Combined Value Proposition (life + health + pension + asset management) 43 R$6.1 bn in pension reserves

44 Private Pension Total Market Information Overview Contributions (R$ billion) Technical reserves (R$ billion) % CAGR % % CAGR % H16 1H H16 1H17 Contribution breakdown (% of total contribution; 1H17) 7.6% 3.8% 88.6% VGBL PGBL Traditional 23.0% Market share (% of total technical reserves; 1H17) 1.4% 0.8% Banco do Brasil 2.1% 2.2% Bradesco + HSBC 5.6% 5.9% 30.5% Itaú Caixa Seguros 28.5% Santander Icatu Safra SulAmérica (8 th ) Others 44 Source: Susep (Dec/16 and Jun/17)

45 SulAmérica Asset Management Solid track record with domestic investment expertise FIXED INCOME EQUITIES MULTISTRATEGY Main characteristics Diversified and competitive portfolio including sound equity and fixed income products for Pension Funds, Corporates and Individuals International partnerships with Franklin Templeton and ABS National partnerships (JGP and Brasil Plural) Highest S&P Rating: AMP-1 Very Strong 45 R$36.9 bn in assets under management

46 Asset Management Total Market Information Overview AuM AuM by asset class (R$ trillion) (% of total AuM; 2016) 10.9% CAGR % 48.0% 19.4% 4.3% Fixed Income Equities Multi Strategy Others AuM by investor type (% of total AuM; 2016) Main independent asset managers by AuM (R$ billion; 2016) 16.9% % 32.4% % Private and Public Pension Corporate and Retail Government Others 46 Source: Anbima (Dec/16)

47 Savings Bonds

48 SulAmérica Savings Bonds Portfolio Bonds with defined maturities and possibility to win prizes TRADITIONAL Payments made over a fixed period over which client may win cash prizes. Upon maturity of the savings bond, holders receive cash back 48 RENT GUARANTEE Traditional savings bond product that replaces cosigners and rent insurance in a landlord-tenant business relationship INCENTIVE/ PROMOTIONAL Raffles associated with promotional sales campaigns linked to a company or product

49 Savings Bonds Total Market Information Overview Contributions (R$ billion) Reserves (R$ billion) +10.0% CAGR -4.5% +11.5% CAGR % H16 1H H16 1H17 Market share (% of total contributions; 1H17) Market share (% of total reserves; 1H17) 4.0% 5.2% 13.9% 29.2% Bradesco + HSBC Banco do Brasil Itaú 2.1% 6.8% Banco do Brasil 6.3% Bradesco + HSBC 6.4% 34.4% Itaú 6.3% Santander Caixa 8.8% Caixa Icatu 7.1% 14.8% 19.4% Icatu SulAmérica Others 11.4% 23.8% Santander SulAmérica Others 93% among the top 7 players 49 Source: Susep (Dec/16 and Jun/17)

50 Financial Highlights

51 SulAmérica Consolidated Financial highlights Insurance premiums (R$ billion) Loss ratio (% of earned premiums) % % BPS -80 BPS 74.4% 74.8% 74.9% 74.6% 76.0% 77.0% 77.9% M16 9M M16 9M17 Acquisition cost ratio (% of earned premiums) Net income & ROAE (R$ million) 17.5% +30 BPS +60 BPS 15.1% 14.0% 14.7% 16.4% % +1.7% 13.7% 13.1% 10.4% 11.0% 11.2% 11.0% 10.7% 10.8% 10.2% % M16 9M M16 9M17 Non-recurring events 51

52 SulAmérica Consolidated Financial highlights Assets (R$ billion) Shareholders equity (R$ billion) 2.8% +8.0% M M17 Debt and leverage ratio (R$ million / %) Dividends and payout (R$ million / %) 26% 24% 28% 1,400 21% 30% 30% 30% 25% 25% 15% 15% 1,037 1,078 1, M17 Indebtedness (R$ Million) Leverage Ratio (Debt/Shareholders' Equity) Dividends Payout 52

53 SulAmérica Consolidated Financial highlights General & administrative expenses ratio Combined ratio (1) (% of retained premiums) (%) 9.5% 9.1% +40 BPS 9.6% 9.7% 9.3% +0 BPS 9.1% 9.1% 99.4% 98.8% -20 BPS 99.6% 99.7% 99.9% +10 BPS 101.0% 100.9% M16 9M M16 9M17 Investment income ratio (% of retained premiums) Operating ratio (2) (%) 5.4% 4.0% 5.0% +40 BPS -70 BPS -60 BPS +20 BPS 5.8% 96.0% 5.4% 5.6% 95.4% 94.8% 4.9% 94.6% 94.0% 94.3% 94.1% M16 9M M16 9M17 53 (1) Equals the sum of the loss ratio, acquisition cost ratio, other insurance operating revenues and expenses ratio, insurance tax expenses ratio and insurance gross margin ratio, which are calculated over earned premiums, and the division of general and administrative expenses by retained premiums; (2) equals the difference between the combined ratio and the investment income ratio, which is calculated over retained premiums.

54 SulAmérica Insurance Float Investment strategy and allocation 114.1% 108.8% Investment strategy (ex-pension) 101.3% 103.3% 95.7% 96.0% 100.8% 2% 5% 3% 1% 1% 1% 1% 0% 5% 8% 6% 7% 8% 6% 28% 12% 10% 11% 8% 24% 17% Equities/Other Fixed-rate 70% 68% 72% 81% 82% 81% 85% Inflation-linked (IPCA) Floating Interest Rate (Selic/CDI) M16 9M17 Yield as % of CDI 17.5% Investment allocation (ex-pension) 0.6% 0.7% R$8.2 billion Brazilian Government Securities Corporate Debt Equities Other 81.2% 54

55 Investor Relations This material is a presentation of general background information about Sul América S.A. ("SulAmérica") as of the date of the presentation or as otherwise indicated. It is information in summary form and does not purport to be complete. It is not intended to be complete nor relied upon as advice to potential investors and does not form the basis for an informed investment decision. This presentation is strictly confidential and may not be disclosed to any other person. No representation or warranty, express or implied, is made concerning, and no reliance should be placed on, the accuracy, fairness, or completeness of the information presented herein. This presentation may contain statements that are forward-looking. Such forward-looking statements are only predictions and are not guarantees of future performance. Investors are cautioned that any such forward-looking statements are and will be, as the case may be, subject to many risks, uncertainties and factors relating to the operations and business environments of SulAmérica and its subsidiaries that may cause the actual results of the companies to be materially different from any future results expressed or implied in such forward-looking statements. No person has any responsibility to update any such information. This presentation does not constitute an offer, or invitation, or solicitation of an offer, to subscribe for or purchase any securities. Neither this presentation nor anything contained herein shall form the basis of any contract or commitment. Version: October/2017