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Brazilian Insurance Market - Results and Prospects - 2015

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Letter From the President

The strength of a legacy

Brazilian Insurance Sector Entities

6 Article on the Current Scenario

The future of the insurance sector and the certainty of the eternal insecurity

72

18 91

Member Federations 2 Summary


LETTER FROM THE PRESIDENT

The strength of a

legacy

Marco Antonio Rossi left important contributions that will inspire all those who are at the head of the Confederation

Jayme Brasil Garfinkel | President of CNseg


S

cientist Albert Einstein once said that a crisis can be a real blessing to any people, to any nation, for all crises bring progress. If we want things to change, he said, we have to do them differently. Following on Einstein´s wise words, it is reasonable to say that it was with this spirit of transformation in mind that the Brazilian insurance sector, represented by the markets of General Insurance, Private Open Insurance and Life, Supplementary Health and Premium Bonds, acted in 2015. Faced with the complex scenario and circumstances of the country, which affected the economy as a whole, Insurance companies endeavored to reformulate their plans and processes in order to find the best ways of meeting the new needs of Brazilian society through their products and services. We should not, however, remember only the difficulties. We must also celebrate achievements, which are the result of a collective effort on the part of market agents. On this matter, CNseg worked hard to bring together the agents of the sector in order to increase their contribution as a lever for the rekindling of economic development in the country. In 2015, the Confederation headed several projects in joint work with its Federations and other partners to strengthen and expand the presence of products supplied by Insurance companies to Brazilian companies, institutions and citizens for their daily lives. Among the initiatives led by CNseg, I would like to point out the boost in communication channels with the Legislative, Executive and Judiciary powers, as well as with consumer protection agencies and market authorities; the drafting of the Prev Saúde bill, approved by the House of Representatives and then sent to the Senate for approval; the rethinking and increment of insurance market statistics; the rise in operations conducted by the Service Center with the development of new products and services for affiliated companies; the fostering of improvements to be made to insurance companies systems and focused on digital security and the supply of new platforms. With regard to the training of professionals of the sector, I wish to underscore the creation of the CNseg Professional Certification – CPC as well as the valuation and recognition given to the Confederation´s workforce, centering on the management of collaborators’ performance. It is undeniable that these and many other achievements were the result, to a large extent, of

Brazilian Insurance Market | Results and Prospects

In 2015, the Confederation headed several projects in joint work with its Federations and other partners to strengthen and expand the presence of products supplied by Insurance companies to Brazilian companies, institutions and citizens for their daily lives.

Watch the video that shows the tribute paid by the insurance community to Marco Antonio Rossi

Letter From the President

4 Summary


He who overcomes a crisis, overcomes himself, without getting “overcome.” It is in the crisis, that we can show the very best in us.” Albert Einstein

Marco Antonio Rossi´s beliefs, who worked tirelessly at the head of CNseg to unite the sector. Perpetuating the legacy left by this great professional, who left us much too early, will always be an important goal for those who will be at the head of the Confederation. Finally, and still borrowing from Albert Einstein´s thoughts on learning brought about by crises, I would like to conclude with the thought that it is in moments such as this that inventions, discoveries and great strategies are born. He who overcomes a crisis, stressed the great scientist - overcomes himself, without getting “overcome.” It is in the crisis, continued Einstein, that we can show the very best in us. “To speak about a crisis it is to promote it. Not

Brazilian Insurance Market | Results and Prospects

to speak about it is to exalt conformism.” “Let us work hard instead,” he stressed. And it is exactly this type of work, hard and persistent, that permeates the content of this publication, renamed Brazilian Insurance Market: Results and Prospects. In the pages that follow, the reader will have access to more analytical and clear information about the current performance and Prospects for the insurance sector in a way that is always related to the developments in the country´s situation. With this new format, CNseg wishes to contribute to an even greater degree to a heightened understanding of the work carried out by the companies which operate in the segments of General Insurance, Private Pension Plans, Premium Bonds and Supplementary Health.

Jayme Brasil Garfinkel President of CNseg

Letter From the President

5 Summary


ARTICLE ON THE CURRENT SCENARIO

The future of the insurance sector and the certainty of the eternal insecurity The Insurance market has been growing stronger and more specialized in Brazil. This is no new finding, but it is always good to emphasize progress achieved. Daniel Domeneghetti | CEO of DOM Strategy Partners


“Nothing can ever be taken for granted anymore.�

N

ational and international companies, different value proposals and business models, increase in the number of insurance lines and channels, innovation in services, products and technologies, among others. There are several variants that we can point to as factors that have been turning the insurance activity in the country into something evergrowing and consistently mature. However, like everything that wants to grow and consolidate itself as a rule, the insurance market also becomes exposed and subjected to the transforming action of hyper-modernity and social evolution. The countless endogenous and exogenous, natural or artificial transformations that society and the markets have been undergoing leave no room for managers of major insurance companies to imagine that the position they have achieved today can be taken for granted tomorrow. Nothing can ever be taken for granted anymore.

Brazilian Insurance Market | Results and Prospects

There is no doubt that the near future - especially for retail activities in Large Scale Services, strongly driven by the digital factor, as is also increasingly the case with the ever changing nature of the insurance sector - will not be a linear continuity of what we have today in terms of formats and models for companies operating in the market. I formally underline here the main change through which insurance companies have been going in a slow, violent and irreversible way, even if they haven´t yet realized it - if that is at all possible: a permanent change in purpose, model and performance profile from what in the past was defined as a Product Industry - always following a B2B and/or B2B2C approach - into a model of Retail of Specialized and/or Large Scale Insurance Services, with or without an insurance industry coexisting as an integrated model that superimposes the divergent - and sometimes exclusive - dynamics of traditional B2B and B2B2C operations to B2C and even B2C2C approaches on the integration of the so-called collaborative social media in the business models.

First and foremost, however, it is worth pointing out that, depending on the lines of specialization, the focus of the market and the business strategy of the company, one must admit that different kinds of impact affect different companies in specific ways. So, if, for some, this challenge means entirely changing the focus of their activities or operational basis, for others it means changing the way they position themselves in the market or even incorporating new competences that are fundamental for effective competition in these new business-oriented ecosystems. So that we can better perceive the relevance and irreversibility of this transformation, we must describe some of the key variables that give momentum, meaning and strength to this movement, as seen in the research conducted by DOM Strategy Partners. To make their study easier, these variables that have different origins, natures and times - are organized below in different categories: Inescapable Assumptions; External Drivers; Strategic Imperatives; Transforming Effects.

Article on the Current Scenario

7 Summary


Category

Inescapable Assumptions Are horizontal elements that affect basically all sectors, markets and players in a homogeneous way, and become the new conditions of contour. Among these main assumptions we can mention:

Exponential globalization of markets paradoxically associated with the strong weight given to local issues (including with regards to legal, regulatory and also cultural aspects);

Creative multiplicity of communication, sales and relationship channels, compelling brands and companies to be always present and close to their markets and customers;

Growing universalization of knowledge and access by potential customers, of different sizes (corporate) and social classes (natural persons), to products and services seen before as sophisticated or less critical, especially those more concretely related to the daily activities of companies and individuals, like Car, Life and Health, among others;

Revision of the role/duty to operate indirectly through brokers and other distribution partners; and Market consolidation and parallel segmentation of offers and value proposals with the specialization of some players in products, services, markets, channels, platforms or specific business models.

Decrease in the price of new technologies, especially those linked to information and communication, affecting the life and routine of companies, their partners/channels, corporate customers and, obviously, their insured and beneficiaries;

Brazilian Insurance Market | Results and Prospects

Article on the Current Scenario

8 Summary


Category

External Drivers These are variables that are outside the operation of the company, which tend to speed up, delay or modify its direction and strategic pace. Some can be anticipated and managed; others are absolutely unforeseeable. Among those, we can mention:

The trend to increase regulation and official control (direct and indirect governmental action) and social monitoring by groups of consumers, users, patients, among others, of so as to standardize, control and disseminate the operational ways and practices of every company; The exponential Increase of information stimuli produced by customers, users, stakeholders and other players related to the companies that will translate, on the one hand, in having to acquire, treat, store data (obviously including here the evolution of technologies such as Cloud and Big Data) and, on the other hand, in having to develop dynamic responses for understanding, addressing and answering of requests and questions;

either for the procurement of products and services or the indication and defense of the company, or in the appreciation of their shares (for open-capital companies); The pressure exerted by new generations, such as the Y, the Z and the Millennials in their roles as customers as well as employees, investors and citizens, changing radically the way companies consider, deal with and relate to individuals and other organizations; and The significant increase of interdependence between individuals, companies and organizations due to the logic of networks and to mass connectivity, and from the concepts of Mobility, Convergence and Contribution - MCC, Biometrics and the Internet of Things - IOT.

The significant impact of the weight of Reputation (understood here as the positive product of corporate Credibility and Image) in the way companies are evaluated, selected and valued by their stakeholders,

Brazilian Insurance Market | Results and Prospects

Article on the Current Scenario

9 Summary


Category

Strategic imperatives These are the external factors that will effectively change the core of the business, its commercial essence; they are the elements and trends that directly affect the products and services created by the companies, since they affect their logic and purpose, such as:

Sustainability issues, especially those related to energy, eco-efficiency, mobility and urban intelligence, biodiversity and climate changes; Demographic, cultural and population-related aspects of countries and nations, including (i) massive migration of individuals and refugees from war/poverty; Ethical crises at the global , local and group/segment levels of the population, involving critical matters such as sex, religion, science, ethical limits, individual freedoms, among others; New Generations X Aging of the Population and the absorption, occupation and satisfaction of functionally dependent individuals, the undervalued professionals, the hyper-connected young and all sorts of clusters, segments and niches/tribes formed physically and virtually, be they ephemeral or long-lasting;

Increasing relevance of the culture of prevention and promotion of health, both individually as well in terms of collective pressure and monitoring by the media; Hyper-hedonism and hyper-experimentalism leaving their mark on the culture of individual will and the bringing down of space-time barriers, especially with regard to 3D technologies and similar things; The increasing weight of Large Risks, Terrorism and the search for intelligent models for the Maintenance of Peace; Challenges of Dynamic Pricing and Instantaneous “Perfect� Markets; Digital Risks, Cyber/Information Crimes and Individual Rights Permission/Data protection/Information Security; and Aspects linked to all sorts of Compliance issues.

New illnesses, new treatments, informational drugs/date drugs and new technologies for medication, among others;

Brazilian Insurance Market | Results and Prospects

Article on the Current Scenario

10 Summary


Category

Transforming Effects Because of all these things, insurance companies will have to rethink themselves as “animals,” since in market Darwinism, with so many forces out of their control, as mentioned above, it is better to be capable of, at least minimally, anticipating, understanding and reacting than to try to foresee and control what cannot be controlled. It can therefore be said that markets and value chains will no longer be linear (“Porterian”) but digitally and physically integrated multi-ecosystems, online and on time, with individuals and companies alternating roles and powers. Therefore, in order to compete in this new world, insurance companies will have to address internally a number of changes in terms of their structural DNA and of their corporate culture, the way they operate, positions taken and values, competences and strategic vision. Among the main challenges that we can point out – which are not necessarily the most critical or important to all players, we can list: The capacity to innovate and/or copy quickly (within their own sector and other sectors), ensuring a successful go-to-market strategy for products and services;

The intelligence to quickly invest and to divest, identify, buy and integrate startups and new technologies, as well as to abandon historically successful practices and models that will not survive the changes through time;

The capacity to add value to what is supplied in a way that is contextualized and segmented by audiences/market so as to differentiate themselves from the competition in a world of “overabundance” of supply;

The capacity to integrate themselves to the main networks, chains and sectors in the market, increasing efficiency, speed and the more robust development of efficient solutions and more competitive costs;

The skills to engage stakeholders, especially customers and consumers, in order to bring them to the center of the development of solutions, in order to improve products, services, contents…;

Betting on digital as the leveraging factor and on the capacity to identify and internalize new technologies that are relevant, seeing them increasingly as an END as opposed to a MEANS (with them being, paradoxically, increasingly more fundamental as MEANS as well);

A complete revision of partners and roles, including the challenge of being present in a multiplicity of channels (especially digital) and the obligation of directly relating to, and doing business with the final user in a continuous way; The capacity to understand that modeling the usability of platforms, interactive experiences and value proposals of the brand itself are fundamental competences to become the company of choice; The intelligence to propose new ways of setting the price, supplying, billing and making profitable products and services;

Brazilian Insurance Market | Results and Prospects

The capacity to treat “each” Customer as if he were unique, applying analytical intelligence and models, developing efficient algorithms, promoting mass customization, delivering value per transaction context and relationship; and The capacity to compete and/or associate with/partner up with new players and new business models, such as 100% digital companies, such as online brokers, financial service providers, digital banks and fintechs, among others.

Article on the Current Scenario

11 Summary


Be it as it may, welcome all to the age of it “we are all insecure forever.” Daniel Domeneghetti

In short, it´s in this kind of scenario that major threats can turn into opportunities, so that he who sees that first and better will go farther. This why being capable of testing, trying, experimenting is increasingly fundamental. The insurance market will be increasingly more exposed to these dilemmas and challenges; its decision-makers having an ever diminishing hold on solid ground when the time to make decisions comes. The risk models and algorithms applied to business, products and customers will now be used for strategic management itself and the management of the competitive capacity of companies. In this shifting ground, those who can deal with uncertainties and complexities, and include them in their management and supply models, will have more chances of being successful. In situations

Brazilian Insurance Market | Results and Prospects

such as this, in which assets and attributes that were not priced in the past (such as peace and water) become extremely valuable, incredible opportunities to create wealth arise. Yet, who will be able to identify them in time? And shape them as something to be supplied? And bring them to the market at a competitive price? Therefore, if the essence of the business becomes to succeed by selling security, peace and compensation, even if based on assumptions, probabilities and mathematical/ statistical models, no one better than insurance companies themselves to be their own eternal guinea pig. But which insurance company really understands this? Be it as it may, welcome all to the age of it “we are all insecure forever.”

Daniel Domeneghetti CEO of DOM Strategy Partners

Article on the Current Scenario

12 Summary


Brazilian Insurance O Setor Sector Entities Aquaepe non ex et doluptatibus repudae cupta atiumquia qui con hillabore erferspernam volorio. Thenobitatia agencies veliquam in charge of seeing that the sectornimustio runs wellaut areopta regulatory, surveillance, institutional representation and educational entities.


National Private Insurance System | SNSP Is formed by agencies and companies who work in the market of insurance, premium bonds and complementary open private retirement pension to create an environment for the development of private insurances policies and to legislate on their standards and oversee their operations. Its composition is as follows:

CNSP National Private Insurance Council

Is the SNSP regulatory agency, responsible for the setting of the guidelines and private insurance policy standards.

Susep Superintendence of Private Insurance

Is an autonomous government agency of the Ministry of Finance. It is responsible for regulating guidelines and standards set by the CNSP and for overseeing companies in the insurance market, complementary open pension, premium bonds and reinsurance, as well as reinsurance and insurance brokers.

CRSNSP Council of Appeals of the National System of Private Insurance, Open Private Pension and Premium Bonds

Brazilian Insurance Market | Results and Prospects

Is a joint committee under the aegis of the Ministry of Finance whose purpose is to act as administrative court of last resort for appeals made to rulings rendered by SUSEP.

Brazilian Insurance Sector Entities

14 Summary


The Structure of the Supplementary Health System Is similar to that of insurance, as can be seen below:

Consu Council of Supplementary Health

Is a joint committee that is part of the framework of internal rules of the Ministry of Health, and is competent to: set and supervise the implementation of policies and general guidelines of the sector of Supplementary Health; set general guidelines for implementation in the sector of Supplementary Health; deliberate on the creation of technical advisory chambers in order to provide input for decisions.

ANS National Agency of Supplementary Health

Brazilian Insurance Market | Results and Prospects

Is a regulatory agency linked to the Ministry of Health whose duty is to defend public interest in supplementary health, regulate and oversee insurance companies that specialize in health, group medical practice, group dental care, self-management, physician cooperatives, dental cooperative, administrators and philanthropic entities, and also intervene in the relationships between service providers and consumers.

Brazilian Insurance Sector Entities

15 Summary


The Main Bodies of Insurance Market The main bodies of institutional representation and education in the insurance market are:

CNseg National Confederation of General Insurance Companies, Private Pension and Life, Supplementary Health and Premium Bonds

CNseg is the highest governing body in the Brazilian Insurance Market, present across the whole country. It is composed by four associative federations that represent the companies that are part of the segments of General insurance, Private Pension and Life, Supplementary Health and Premium Bonds.

Fenaseg National Federation of Premium Bonds and Private Insurance Companies

Brazilian Insurance Market | Results and Prospects

An entity linked to the National Confederation of Financial Institutions - CONSIF, a union representation entity that brings under the same umbrella the regional unions of private insurance companies in the states of Bahia (Sergipe/Tocantins), Minas Gerais, Pernambuco (Northeast North), Paraná, Rio de Janeiro (Espírito Santo), Rio Grande do Sul, Santa Catarina and São Paulo, in addition to the National Union of Open Supplementary Pension Entities.

Brazilian Insurance Sector Entities

16 Summary


The Main Bodies of Insurance Market Continuation

ENS National School of Insurance

An institution whose mission is to spread education, research and knowledge in insurance, as well as see to the needs of the Brazilian professionals through ongoing education, helping them to face a strongly competitive market.

Fenacor National Federation of Private Insurance and Reinsurance Brokers, Premium Bonds, Open Private Pension and Insurance and Reinsurance Brokerage Companies

A higher level trade union that represents in and out of court the affiliated unions and regional labor precincts in order to protect and safeguard the interests of the economic category it represents before private entities and public authorities.

Fenaber National Federation of Reinsurance Companies

Brazilian Insurance Market | Results and Prospects

A non-profit civil associative federation that brings together and represents reinsurance companies that operate in Brazil.

Brazilian Insurance Sector Entities

17 Summary


The Brazilian Insurance Market in numbers In a year in which most economic activities yielded to the crisis, the insurance sector showed resilience and helped other markets mitigate their difficulties.


A

fter more than a decade of controlled inflation, acceptable interest rates, almost full employment rates, growing investments in several sectors, an abrupt change of direction was made to these important indicators, forcing all players to make major adjustments in order to adapt to the erosion of economic and ethical pillars. Although it was affected by the slowdown in premiums, the insurance market proved to be more resistant to the crisis, especially when compared to other strategic sectors of the economy, such as the oil and gas industry, civil construction and infrastructure, and was one of the few sectors capable of closing off the year with positive growth. Market revenue ratified consumers’ trust and showcased its role of promotion of the other economic activities and its leading role in social protection. As a reSoutht, revenue was a total of BRL 365 billion in 2015, which corresponded to a nominal growth of 11% compared to 2014. Transfers to society, for payment of indemnities, benefits, redemptions and premiums bonds, and claims covered by insurance in

Brazilian Insurance Market | Results and Prospects

Supplementary Health increased significantly in 2015, amounting to BRL 235 billion and corresponding to a steady two-digit growth of precisely 13%. In 2014, the consolidated market spent BRL 207 billion, 12% more than on the preceding tax year. It is worth remembering that the delivery of a service or product represents one of the most important stages of any economic activity. The more so if this delivery takes place at a moment of helplessness, insecurity or vulnerability on the part of customers, as is often the case in the Insurance market. This can strengthen the relationship of trust the company and its customers, secure the loyalty of policyholders and ratify the role of the market as a pillar of economic and social development in the Country. The billionaire amount paid by the market in a very complex macroeconomic environment is well worth mentioning. Quite certainly, these cash transfers made by the market to policyholders helped mitigate the severe effects of the crisis, preserve the sustainability of businesses, the quality of life and the well-being of the insured population. To summarize, the insurance sector continues to be that pillar that protects other economic activities from hardship and millions of insured policyholders from misfortune.

The billionaire amount paid by the market in a very complex macroeconomic environment is well worth mentioning. To summarize, the insurance sector continues to be that pillar that protects other economic activities from hardship and millions of insured policyholders from misfortune.

The Brazilian Insurance Market in Numbers

19 Summary


Performance per segment In General Insurance, companies affiliated with FenSeg paid nearly BRL 38 billion for claims that took place in 2015. This amount represented a nominal increase of 11% in comparison with the total amount of the previous year. In the Open Private Pension and Life segment, the companies affiliated with FenaPrevi transferred back nearly BRL 57 billion in redemptions and benefits, more than 13% compared to the previous year. In Supplementary Health, insurance companies paid expenditures of the order of BRL 122 billion, an increase of almost 13% compared to the previous year. In Premium Bonds, companies affiliated with FenaCap paid more than BRL 18 billion in redemption of premium saving bonds, 13% more than in 2014. In addition to benefits and indemnities paid on time, there is another significant aspect of the insurance market that is little known to society and governments: its role as a major institutional investor. In this sense, it is worth noting that the provisions of the insurance market have reached BRL 687 billion in 2015, an increase of approximately 19% over the BRL 579 billion of 2014. Per modality, insurance companies find themselves in a leadership position with BRL 625 billion in funds used to pay for claims. This 2015 sum represented

Brazilian Insurance Market | Results and Prospects

a 20% increase in comparison with 2014. Premium Bonds companies come second with BRL 31 billion in provisions and an increase of almost 4% compared with the previous tax year. Health insurance companies invested BRL 29 billion in 2015, close to 4% more than what was set aside in 2014. In turn, open private pension entities invested BRL 2 billion, a 300% increase compared with the preceding year.

Claims, redemptions and benefits BRL$38 billion BRL$57 billion

General Insurance

Private Pension

BRL$122 billion

Supplementary Health

BRL$18 billion Premium Bonds

The Brazilian Insurance Market in Numbers

20 Summary


Statistics CNseg

FenSeg

FenaPrevi

FenaSaúde

FenaCap

insurer market

general insurance

private pension and life

Supplementary Healthcare

premium bonds

Revenue and GDP Revenue distribution Per capita Revenue per Line of Business group Per capita Revenue per Line of Business group Claims, Indemnities, Drawings, Redemption and Benefits Expenses Taxes Collected Assets, Provisions and Net Equity

Revenue, GDP and Inflation Revenue per Line of Business group Revenue Distribution per Line of Business group Revenue Distribution per Geographic Region Reinsurance Premium Coinsurance Premium Car Insurance Housing Mortgage Insurance Property Insurance Extended Warranty Compulsory Vehicle Liability Insurance (Compulsory Vehicle Liability Insurance Certificate) Transport Insurance Credit Insurance and Surety Bonds Rural Insurance Insurance Civil Liability Air and Marine Cargo Insurance Claims Claims per Line of Business group Claim Distribution per Line of Business group Claims per Region Recovery of Indemnity paid in Reinsurance Coinsurance Claims Salvage Recovery Trading Expenses Development

insurance

Certificate Numbers Technical Provisions Portability Redemption Modes Revenue Provision Distribution Revenue Distribution Claims Benefits Paid

Revenue, GDP and Inflation Affiliated Companies’ Revenue per Modality Healthcare expenses Affiliated companies´ Healthcare Assistance Combined Index Loss Ratio Beneficiaries per Modality Beneficiaries per Region Distribution of Beneficiaries Beneficiaries per Age Group Beneficiaries‘ Age Pyramid per Type of Plan

Revenue, GDP and Inflation Revenue per Region Drawings, Redemption and Expenses


CNseg

Revenue and GDP Insurance Market Revenue to GDP In BRL$ billion and % Share Revenue 2011

2012

2013

2014

2015

% change 2015/2014

Car

21,34

24,75

0,16

31,43

32,53

3,5%

52,4%

Compulsory Vehicle Liability Insurance

6,66

7,22

0,08

8,46

8,62

1,9%

29,5%

Compulsory Vehicle Liability Insurance

6,95

7,21

0,04

9,15

9,90

8,2%

42,4%

Housing Mortgage Insurance

1,40

1,77

0,26

2,64

3,11

17,6%

121,4%

Transportation Insurance

2,26

2,30

0,02

2,50

2,51

0,5%

11,0%

Credit Insurance and Surety Bond

1,46

1,59

1,99

2,23

2,73

22,3%

87,1%

Extended Warranty

2,26

2,61

2,90

3,12

2,85

-8,7%

26,4%

Civil Liability Insurance

0,93

1,04

1,22

1,29

1,52

17,7%

63,9%

Rural Insurance Insurance

1,23

1,47

2,29

2,89

3,27

13,0%

164,9%

Air and Marine Cargo Insurance

0,59

0,60

0,68

0,76

0,81

6,1%

36,3%

Others

0,55

0,77

1,10

0,83

0,92

10,0%

66,9%

45,63

51,35

60,52

65,31

68,77

5,3%

50,7%

Group Insurance

16,90

19,00

22,17

23,45

24,59

4,9%

45,5%

Individual Insurance

2,15

2,86

3,57

4,21

5,18

23,0%

140,3%

Traditional Risk Plans

2,29

2,49

2,86

3,08

3,03

-1,7%

32,4%

VGBL family of products

43,39

59,57

62,26

71,39

86,15

20,7%

98,5%

PGBL family of products

7,01

7,53

7,92

8,38

9,00

7,4%

28,3%

Traditional Accrual Plans

1,04

1,01

0,92

0,87

0,85

-2,0%

-18,0%

Personal Lines of Business/Universal Life

72,78

92,46

99,70

111,38

128,79

15,6%

77,0%

Premium Bonds

14,10

16,59

20,97

21,87

21,51

-1,7%

52,5%

Medical Insurance

82,78

94,38

107,38

124,96

141,92

13,6%

71,4%

Medical Insurance

2,53

2,95

3,19

3,52

4,00

13,6%

57,7%

Supplementary Health

85,30

97,23

110,58

128,48

145,91

13,6%

71,1%

Insurance Market

217,81

257,62

291,77

327,04

364,98

11,6%

67,6%

GDP

4.373,7

4.805,9

5.316,5

5.687,3

5.904,3

3,8%

35,0%

Penetration rate to the GDP

4,98%

5,36%

5,49%

5,75%

6,18%

0,43 p.p.

1,20 p.p.

Property and Casualty Insurance

Property and Casualty Insurance Risk Plans Personal Lines of Business/ Universal Life Accrual Plans

Supplementary Health

Sources: DIOPS (ANS) - Data extracted on 05/05/2016 SES (SUSEP) - Data extracted on 09/05/2016 SIDRA (IBGE) - Data extracted on 01/04/2016

Brazilian Insurance Market | Results and Prospects

Note:

% change 2015/2011

1) Amounts that refer to endowment lines were added to risk plans, although they display mixed features of risk and accrual. 2) For methodological purposes, the amounts herein presented are different from those released by ANS and FenaSaúde. 3) The amount released for the Supplementary Healthcare market was estimated by account 311 (Net consideration – Retained Premiums).

Statistics

22 Summary


CNseg

Revenue Distribution per segment in %

6,4%

6,5%

23,6%

2011 9,8%

39,2%

7,2%

26,4%

2012

37,7%

2013

37,9%

9,8%

9,4% 20,9%

24,4%

6,7%

19,9%

Property and Casualty

Personal Lines of Business: accrual plans

Sources: DIOPS (ANS) - Data extracted on 05/05/2016 SES (SUSEP) - Data extracted on 09/05/2016 SIDRA (IBGE) - Data extracted on 01/04/2016

Brazilian Insurance Market | Results and Prospects

Note:

2014

39,3%

9,4% 20,7%

Supplementary Health

24,7%

5,9%

26,3%

2015

40,0%

9,0% 20,0%

18,8%

Personal Lines of Business: risk plans Premium Bonds

1) Amounts that refer to endowment endowment lines were added to risk plans, although they display mixed features of risk and accrual. 2) For methodological purposes, the amounts herein presented are different from those released by ANS and FenaSaúde. 3) The amount released for the Supplementary Healthcare market was estimated by account 311 (Net consideration – Retained Premiums).

Statistics

23 Summary


CNseg

Revenue and Inflation | Per capita Revenue per Line of Business group Extended Consumer Price Index, Insurance Market Revenue and GDP- Real and Nominal In BRL$ Billion and % change 2011

2012

2013

2014

2015

Property and Casualty

45,63

51,35

60,52

65,31

Personal Lines of Business

72,78

92,46

99,70

Premium Bonds

14,10

16,59

Supplementary Health

85,30

Insurance Market

% change 2015/2014

% change 2015/2011

Nominal

Real

68,77

5,3%

-4,9%

50,7%

111,38

128,79

15,6%

4,5%

77,0%

20,97

21,87

21,51

-1,7%

-11,1%

52,5%

97,23

110,58

128,48

145,91

13,6%

2,6%

71,1%

217,81

257,62

291,77

327,04

364,98

11,6%

0,8%

67,6%

GDP

4.373,7

4.805,9

5.316,5

5.687,3

5.904,3

3,8%

-6,2%

35,0%

Extended Consumer Price Index

6,50%

5,84%

5,91%

6,41%

10,67%

--

--

--

Sources: DIOPS (ANS) - Data extracted on 05/05/2016 SES (SUSEP) - Data extracted on 09/05/2016 SIDRA (IBGE) - Data extracted on 01/04/2016

Note:

1) For methodological purposes, the amounts herein presented are different from those released by ANS and FenaSaúde. 2) The amount released for the Supplementary Healthcare market was estimated by account 311 (Net consideration – Retained Premiums).

Insurance Market Revenue per capita per segment In BRL$ and % change 2011

2012

2013

2014

2015

% change 2015/2014

% change 2015/2011

Property and Casualty

230,27

256,75

299,99

320,99

335,23

4,2%

45,6%

Personal Lines of Business: risk plans

107,69

121,72

141,74

151,07

159,87

5,5%

48,5%

Personal Lines of Business: accrual plans

259,60

340,60

352,40

396,32

467,98

15,3%

80,3%

Premium Bonds

71,16

82,96

103,96

107,50

104,86

-2,5%

47,4%

Supplementary Health

430,43

486,16

548,08

631,42

711,31

11,2%

65,3%

1.099,14

1.288,18

1.446,17

1.607,30

1.779,26

9,7%

61,9%

Insurance Market Sources: DIOPS (ANS) - Data extracted on 05/05/2016 SES (SUSEP) - Data extracted on 09/05/2016 SIDRA (IBGE) - Data extracted on 01/04/2016

Brazilian Insurance Market | Results and Prospects

Note:

1) Amounts that refer to endowment endowment lines were added to risk plans, although they display mixed features of risk and accrual. 2) For methodological purposes, the amounts herein presented are different from those released by ANS and FenaSaúde. 3) The amount released for the Supplementary Healthcare market was estimated by account 311 (Net consideration – Retained Premiums).

Statistics

24 Summary


CNseg

Revenue Distribution per Region Insurance Market revenue per region In BRL$ billion and % of change 2011

2012

2013

2014

2015

% change 2015/2014

% change 2015/2011

North

2,88

3,43

3,84

4,09

4,62

12,7%

60,2%

Northeast

11,91

15,74

17,87

19,64

24,02

22,4%

101,7%

Midwest

8,59

10,50

12,17

14,06

15,88

13,0%

85,0%

Southeast

85,15

104,83

117,26

128,10

138,60

8,2%

62,8%

South

20,85

25,73

29,96

32,62

35,94

10,2%

72,4%

132,52

160,39

181,19

198,56

219,07

10,3%

65,3%

Brazil Source: SES (SUSEP) - Data extracted on 09/05/2016

Southeast

63,3%

Source:

Note:

South

Northeast

16,4%

SES (SUSEP) - Data extracted on 15/02/2016

Brazilian Insurance Market | Results and Prospects

1) The Supplementary Healthcare segment is not addressed by this table, since data for this segment are not available per state. 2) Policies that do not bear any datum in the “state” field or registered overseas were not reallocated to any specific geographical region, although they are comprised by “Brazil.”

11,0%

Note:

Midwest

7,3%

North

2,1%

1) The Supplementary Healthcare segment is not addressed by this table, since data for this segment are not available per state. 2) Policies that do not bear any datum in the “state” field or registered overseas were not reallocated to any specific geographical region, although they are comprised by “Brazil.”

Statistics

25 Summary


CNseg

Claims, Indemnities, Drawings, Redemption and Benefits Claims incurred, claims settled, prize draws, redemptions and benefits per segment of the Insurance Market In BRL$ billion and % change 2011

2012

2013

2014

2015

% change 2015/2014

% change 2015/2011

Property and Casualty

23,41

27,47

30,32

34,12

37,89

11,1%

61,8%

Personal Lines of Business

30,42

35,53

48,34

49,97

56,69

13,5%

86,4%

Premium Bonds

9,86

11,45

14,10

16,33

18,42

12,8%

86,8%

Supplementary Health

68,91

80,01

91,55

106,97

121,51

13,6%

76,3%

132,61

154,46

184,31

207,39

234,51

13,1%

76,8%

Insurance Market

Sources: DIOPS (ANS) - Data extracted on 05/05/2016 SES (SUSEP) - Data extracted on 09/05/2016

Brazilian Insurance Market | Results and Prospects

Note:

This table addresses bond redemption that was, in most cases, paid for by the company as a reSoutht of contract expiration and/or individual coverage plan redemption which represent either partial or total breach in contract coverage.

Statistics

26 Summary


CNseg

Expenses Insurance Market Expenses per type of company In BRL$ billion and % change 2011

2012

2013

2014

2015

% change 2015/2014

% change 2015/2011

Premium Bonds

1,11

1,29

1,44

1,47

1,59

8,3%

43,4%

Supplementary Pension Organizations

0,01

0,01

0,02

0,04

0,06

47,3%

533,4%

Insurer

12,41

14,64

16,86

20,12

22,37

11,2%

80,3%

Supplementary Health

2,75

3,15

3,60

4,20

4,97

18,3%

80,6%

16,27

19,10

21,92

25,82

28,99

12,3%

78,1%

2011

2012

2013

2014

2015

% change 2015/2014

% change 2015/2011

Premium Bonds

0,98

0,99

0,90

1,23

1,32

7,4%

35,3%

Supplementary Pension Organizations

0,01

0,01

0,02

0,02

-0,02

-202,9%

-257,3%

Insurer

6,27

7,09

7,36

10,11

11,18

10,6%

78,4%

Supplementary Health

1,60

1,63

1,90

2,33

2,63

12,9%

64,4%

Insurance Market

8,86

9,73

10,17

13,69

15,12

10,4%

70,6%

2011

2012

2013

2014

2015

% change 2015/2014

% change 2015/2011

Premium Bonds

0,57

0,58

0,70

0,78

0,81

3,3%

41,6%

Supplementary Pension Organizations

0,10

0,11

0,11

0,11

0,12

6,0%

21,9%

Insurer

9,11

10,10

11,04

12,55

14,01

11,6%

53,7%

Supplementary Health

12,72

13,58

14,24

15,94

17,28

8,4%

35,9%

Insurance Market

22,50

24,38

26,09

29,38

32,22

9,7%

43,2%

Despesa de comercialização

Insurance Market Taxes collected

Administrative expenditure

Sources: DIOPS (ANS) - Data extracted on 05/05/2016 SES (SUSEP) - Data extracted on 09/05/2016

Brazilian Insurance Market | Results and Prospects

Statistics

27 Summary


CNseg

Taxes Collected In %

26,5% 44,3%

2011

25,8% 43,7%

29,3%

2012

27,8% 46,2%

30,5%

Brazilian Insurance Market | Results and Prospects

44,3%

2014

Note:

Other taxes

27,1% 43,0%

2015

28,2%

26,0%

Social Contribution

Sources: DIOPS (ANS) - Data extracted on 05/05/2016 SES (SUSEP) - Data extracted on 09/05/2016

2013

27,5%

29,9%

Income Tax

Other taxes are: IOF, IPVA, IPTU, ITR, ITBI, PIS/PASEP, CONFINS, Inspection Fee / Supplementary Healthcare Fee, etc.

Statistics

28 Summary


CNseg

Assets, Provisions and Net Equity Insurance Market Assets, Provisions and Net Equity per type of company In BRL$ billion and % change 2011

2012

2013

2014

2015

% change 2015/2014

% change 2015/2011

Premium Bonds

28,34

31,88

34,53

37,07

37,56

1,3%

32,5%

Supplementary Pension Organizations

1,20

1,20

1,20

1,46

2,89

97,7%

140,7%

409,93

499,60

547,43

637,70

740,62

16,1%

80,7%

67,32

76,15

85,71

94,58

100,08

5,8%

48,7%

506,79

608,83

668,86

770,81

881,17

14,3%

73,9%

2011

2012

2013

2014

2015

% change 2015/2014

% change 2015/2011

Premium Bonds

19,79

22,54

26,77

29,94

31,06

3,7%

57,0%

Supplementary Pension Organizations

0,52

0,51

0,50

0,51

2,08

307,0%

297,6%

Insurer

317,39

391,21

442,64

520,47

624,84

20,1%

96,9%

Supplementary Health

15,25

18,58

24,19

27,91

28,95

3,7%

89,9%

Insurance Market

352,94

432,83

494,11

578,83

686,93

18,7%

94,6%

2011

2012

2013

2014

2015

% change 2015/2014

% change 2015/2011

Premium Bonds

6,32

6,28

5,05

4,01

3,30

-17,6%

-47,8%

Supplementary Pension Organizations

0,55

0,59

0,58

0,81

0,66

-18,8%

19,2%

Insurer

65,84

75,35

72,10

75,58

71,62

-5,2%

8,8%

Supplementary Health

29,12

31,57

34,37

37,86

40,40

6,7%

38,7%

Insurance Market

101,83

113,79

112,10

118,26

115,99

-1,9%

13,9%

Total Investments (Provisions + Net Equity)

454,78

546,63

606,20

697,09

802,92

15,2%

GDP

4.373,7

4.805,9

5.316,5

5.687,3

5.904,3

3,8%

Investment share to GDP

10,40%

11,37%

11,40%

12,26%

13,60%

10,9%

Assets

Insurer Supplementary Health Insurance Market Provisions

Net Equity

Sources: DIOPS (ANS) - Data extracted on 05/05/2016 SES (SUSEP) - Data extracted on 09/05/2016 SIDRA (IBGE) - Data extracted on 01/04/2016

Brazilian Insurance Market | Results and Prospects

Statistics

29 Summary


FenSeg

Revenue, GNP and Inflation Property and Casualty revenue and penetration to GDP per type of plan - Nominal and Real In BRL$ billion and % change 2011 Property and Casualty

2012

2013

2014

2015

% change 2015/2014 Nominal

Real

% change 2015/2011

45,63

51,35

60,52

65,31

68,77

5,3%

-4,9%

50,7%

4.373,66

4.805,91

5.316,46

5.687,31

5.929,75

4,3%

-5,8%

35,6%

Sector´s penetration to GDP

1,04%

1,07%

1,14%

1,15%

1,16%

0,01 p.p.

–

0,12 p.p.

Extended Consumer Price Index

6,50%

5,84%

5,91%

6,41%

10,67%

–

–

–

GDP

Sources: SES (SUSEP) - Data extracted on 07/03/2016

IBGE - Data extracted on 29/01/2016

Revenue from Property and Casualty Insurance In BRL$ billlion

2011 2012 2013 2014 2015

45,6 bi 51,3 bi 60,5 bi 65,3 bi 68,8 bi

Sources: SES (SUSEP) - Data extracted on 07/03/2016

IBGE - Data extracted on 29/01/2016

Brazilian Insurance Market | Results and Prospects

Statistics

30 Summary


FenSeg

Revenue per Line of Business Property and Casualty per line group In BRL$ million and % change Direct Premium

% change 2015/2014

% change 2015/2011

2011

2012

2013

2014

2015

21.338,47

24.747,90

29.264,31

31.426,32

32.529,73

3,5%

52,4%

Compulsory Vehicle Liability Insurance

6.657,43

7.220,65

8.031,53

8.462,90

8.622,03

1,9%

29,5%

Property Insurance

6.952,36

7.213,11

8.397,98

9.149,08

9.902,30

8,2%

42,4%

Housing Mortgage Insurance

1.402,54

1.770,26

2.177,97

2.641,05

3.105,01

17,6%

121,4%

Transportation insurance

2.258,91

2.298,72

2.467,83

2.495,46

2.507,72

0,5%

11,0%

Credit Insurance and Surety Bonds

1.459,30

1.592,08

1.991,77

2.232,71

2.730,53

22,3%

87,1%

Extended Warranty

2.255,35

2.610,02

2.901,52

3.123,23

2.850,96

-8,7%

26,4%

927,26

1.043,63

1.217,57

1.290,55

1.519,33

17,7%

63,9%

1.234,94

1.474,66

2.285,72

2.893,92

3.271,43

13,0%

164,9%

Air and Marine Cargo Insurance

593,94

602,40

683,48

763,03

809,42

6,1%

36,3%

Others

550,20

772,68

1.104,55

834,33

918,06

10,0%

66,9%

45.630,7

51.346,1

60.524,2

65.312,6

68.766,5

5,3%

50,7%

Car

Civil Liability Insurance Rural Insurance

Property and Casualty

Sources: SES (SUSEP) - Data extracted on 07/03/201 % change 2015/2014 IBGE - Data extracted on 29/01/2016

Brazilian Insurance Market | Results and Prospects

Statistics

31 Summary


FenSeg

Revenue Distribution per Line of Business group Claim distribution per line group in 2015 In %

1,3% 1,2%

Car Insurance

2,2% 3,6%

Property Insurance

4,0%

DPVAT (Compulsory Vehicle Liability Insurance Certificate)

4,1%

Rural Insurance Insurance

4,5%

Housing Mortgage Insurance

4,8% 47,3% 12,5%

Extended Warranty Credit Insurance and Surety Bonds Transport Insurance

14,4%

Civil Liability Air and Marine Cargo Insurance Other

Sources: SES (SUSEP) - Data extracted on 07/03/2016 IBGE - Data extracted on 29/01/2016

Brazilian Insurance Market | Results and Prospects

Statistics

32 Summary


FenSeg

Revenue Distribution per Region Property and Casualty Revenue per Region and per line group In BRL$ million and % change Direct Premium

Northeast

% change 2015/2011

2011

2012

2013

2014

2015

Car

2.261,25

2.452,18

3.062,57

3.401,04

3.980,06

17,0%

76,0%

Compulsory Vehicle Liability Insurance

1.042,07

1.265,73

1.419,51

1.482,77

1.567,09

5,7%

50,4%

Property Insurance

392,59

452,71

601,67

481,68

568,28

18,0%

44,8%

Housing Mortgage Insurance

129,83

162,67

201,17

245,09

295,45

20,6%

127,6%

Transportation insurance

57,90

74,98

79,55

65,47

273,09

317,2%

371,7%

Credit Insurance and Surety Bonds

80,28

96,71

102,16

107,56

161,64

50,3%

101,3%

185,62

226,04

304,29

241,91

196,54

-18,8%

5,9%

Civil Liability Insurance

27,21

36,81

45,71

32,19

62,33

93,6%

129,1%

Rural Insurance

52,46

58,14

107,38

149,97

208,47

39,0%

297,4%

Air and Marine Cargo Insurance

19,73

25,35

25,56

23,29

49,34

111,8%

150,1%

Others

20,03

33,47

46,38

27,16

41,92

54,3%

109,3%

4.269,0

4.884,8

5.996,0

6.258,1

7.404,2

18,3%

73,4%

12.789,95

15.443,52

17.684,32

18.910,78

18.662,17

-1,3%

45,9%

Compulsory Vehicle Liability Insurance

3.260,69

3.333,97

3.742,37

4.011,17

4.094,41

2,1%

25,6%

Property Insurance

5.161,41

5.222,97

5.998,66

6.760,90

7.029,35

4,0%

36,2%

921,17

1.113,59

1.386,62

1.704,54

2.024,74

18,8%

119,8%

Transportation insurance

1.685,62

1.701,07

1.759,75

1.826,22

1.624,01

-11,1%

-3,7%

Credit Insurance and Surety Bonds

1.125,20

1.225,96

1.559,44

1.764,01

2.144,03

21,5%

90,5%

Extended Warranty

1.747,32

2.093,42

2.290,87

2.582,97

2.294,12

-11,2%

31,3%

Civil Liability Insurance

783,44

881,13

1.016,92

1.095,18

1.249,35

14,1%

59,5%

Rural Insurance

361,33

453,44

847,62

1.046,80

893,55

-14,6%

147,3%

Air and Marine Cargo Insurance

413,22

441,55

589,00

677,41

659,32

-2,7%

59,6%

Others

448,45

626,43

919,11

713,52

749,55

5,1%

67,1%

28.697,8

32.537,0

37.794,7

41.093,5

41.424,6

0,8%

44,3%

Extended Warranty

Total in the Northeastern region Car

Housing Mortgage Insurance

Southeast

% change 2015/2014

Total in the Southeastern region

Brazilian Insurance Market | Results and Prospects

Statistics

33 Summary


FenSeg

Revenue Distribution per Region Continuação

Property and Casualty Revenue per Region and per line group In BRL$ million and % change Direct Premium 2012

2013

2014

2015

1.867,11

1.759,09

2.232,35

2.492,98

2.645,24

6,1%

41,7%

Compulsory Vehicle Liability Insurance

641,27

716,48

766,10

781,41

792,30

1,4%

23,6%

Property Insurance

310,20

356,10

405,76

480,29

500,82

4,3%

61,5%

Housing Mortgage Insurance

126,43

218,68

244,03

268,39

283,80

5,7%

124,5%

Transportation insurance

26,58

31,40

50,91

50,17

58,24

16,1%

119,1%

Credit Insurance and Surety Bonds

97,80

112,81

116,41

129,56

157,57

21,6%

61,1%

Extended Warranty

96,38

102,42

74,53

79,21

84,35

6,5%

-12,5%

Civil Liability Insurance

23,30

29,34

37,80

35,90

46,77

30,3%

100,7%

220,54

256,07

444,25

508,91

642,92

26,3%

191,5%

7,27

18,44

12,90

15,43

25,28

63,8%

247,9%

10,74

25,78

29,24

20,48

24,31

18,7%

126,3%

3.427,6

3.626,6

4.414,3

4.862,7

5.261,6

8,2%

53,5%

Car

442,02

475,90

611,10

652,82

727,88

11,5%

64,7%

Compulsory Vehicle Liability Insurance

310,17

427,20

446,16

468,39

477,43

1,9%

53,9%

Property Insurance

126,13

135,37

153,47

165,08

217,24

31,6%

72,2%

Housing Mortgage Insurance

25,15

30,48

39,94

48,81

58,65

20,2%

133,2%

Transportation insurance

40,36

31,67

44,13

40,05

41,53

3,7%

2,9%

Credit Insurance and Surety Bonds

12,27

12,01

15,26

21,00

32,07

52,7%

161,3%

Extended Warranty

25,98

38,61

43,53

14,88

26,36

77,2%

1,4%

7,38

6,12

7,52

8,26

15,71

90,1%

112,7%

15,74

21,67

42,80

65,89

108,61

64,8%

589,9%

Air and Marine Cargo Insurance

4,72

5,52

5,68

7,66

13,70

78,8%

190,0%

Others

5,97

11,04

14,21

9,31

12,24

31,4%

105,2%

1.015,9

1.195,6

1.423,8

1.502,2

1.731,4

15,3%

70,4%

Rural Insurance Air and Marine Cargo Insurance Others Total in the midwestern region

North

% change 2015/2011

2011 Car

Midwest

% change 2015/2014

Civil Liability Insurance Rural Insurance

Total in the northern region

Brazilian Insurance Market | Results and Prospects

Statistics

34 Summary


FenSeg

Revenue Distribution per Region Continuação

Property and Casualty Revenue per region and per line group In BRL$ million and % change Direct Premium

South

% change 2015/2014

% change 2015/2011

2011

2012

2013

2014

2015

Car

3.978,14

4.615,72

5.673,96

5.968,70

6.514,37

9,1%

63,8%

Compulsory Vehicle Liability Insurance

1.403,23

1.477,27

1.657,40

1.717,32

1.690,80

-1,5%

20,5%

Property Insurance

940,84

1.045,95

1.238,42

1.261,05

1.586,62

25,8%

68,6%

Housing Mortgage Insurance

199,95

244,84

306,21

374,22

442,37

18,2%

121,2%

Transportation insurance

394,96

459,60

533,49

513,55

510,86

-0,5%

29,3%

Credit Insurance and Surety Bonds

106,06

137,51

185,51

210,58

235,23

11,7%

121,8%

Extended Warranty

199,89

149,53

188,30

204,23

249,59

22,2%

24,9%

82,89

89,09

109,35

119,01

145,17

22,0%

75,1%

585,57

685,33

843,66

1.121,75

1.417,88

26,4%

142,1%

Air and Marine Cargo Insurance

22,51

39,42

38,22

39,24

61,78

57,5%

174,5%

Others

64,74

75,96

95,61

63,86

90,03

41,0%

39,1%

7.978,8

9.020,2

10.870,1

11.593,5

12.944,7

11,7%

62,2%

45.630,7

51.346,1

60.524,2

65.312,6

68.766,5

5,3%

50,7%

Civil Liability Insurance Rural Insurance

Total in the southern region Brazil Sources: SES (SUSEP) - Data extracted on 07/03/2016

Brazilian Insurance Market | Results and Prospects

Note:

Amounts not listed in specific geographic regions and overseas come under “Other”, once they do not stand for significant figures.

Statistics

35 Summary


FenSeg

Reinsurance Premium Premium assigned to reinsurance per line group In BRL$ million and % change Reinsurance premium 2011 Car

2012

2013

2014

2015

% change 2015/2014

% change 2015/2011

199,43

97,88

289,96

370,32

348,97

-5,8%

75,0%

0,00

0,00

0,00

0,00

0,00

100,0%

-

2.849,26

2.873,27

3.256,59

3.029,84

3.065,51

1,2%

7,6%

71,29

68,67

116,67

108,96

97,83

-10,2%

37,2%

Transportation insurance

443,27

538,76

588,94

595,70

579,92

-2,6%

30,8%

Credit Insurance and Surety Bonds

825,06

758,02

921,20

794,55

979,93

23,3%

18,8%

0,00

0,25

-2,10

0,00

0,00

135,8%

-96,6%

Civil Liability Insurance

484,77

581,96

569,14

521,59

628,84

20,6%

29,7%

Rural Insurance

475,38

544,79

823,50

935,47

1.006,80

7,6%

111,8%

Air and Marine Cargo Insurance

491,01

533,04

430,69

497,27

588,88

18,4%

19,9%

Others

423,84

527,38

809,95

645,90

637,96

-1,2%

50,5%

6.263,32

6.524,01

7.804,54

7.499,58

7.934,63

5,8%

26,7%

Compulsory Vehicle Liability Insurance Property Insurance Housing Mortgage Insurance

Extended Warranty

Property and Casualty Source: SES (SUSEP) - Data extracted on 07/03/2016

Brazilian Insurance Market | Results and Prospects

Statistics

36 Summary


FenSeg

Coinsurance Premium Coinsurance premiums accepted and assigned per line group In BRL$ million and % change Accepted coinsurance premium 2011

2012

2013

2014

2015

Car

89,06

54,09

66,12

80,77

96,83

Compulsory Vehicle Liability Insurance

11,58

0,00

0,00

0,00

0,00

Property Insurance

800,24

822,60

864,80

907,95

770,48

Housing Mortgage Insurance

39,83

47,23

53,49

46,00

Transportation insurance

79,09

109,78

123,20

120,86

95,93

Extended Warranty

23,98

Civil Liability Insurance

% change % change 2015/2014 2015/2011

Assigned coinsurance premium

% change % change 2015/2014 2015/2011

2011

2012

2013

2014

2015

8,7%

87,63

54,47

66,62

81,39

95,87

-100,0%

0,00

0,00

0,00

0,00

0,00

-15,1%

-3,7%

752,92

697,88

855,75

957,56

858,88

-10,3%

14,1%

1,18

-97,4%

-97,0%

40,34

46,93

59,86

46,10

1,23

-97,3%

-96,9%

119,91

131,18

9,4%

65,9%

79,52

111,34

122,41

129,26

122,43

-5,3%

54,0%

146,92

213,20

232,38

9,0%

92,3%

135,95

126,11

166,21

203,23

268,87

32,3%

97,8%

186,84

338,34

368,47

345,74

-6,2%

1.341,9%

27,71

223,99

384,84

394,38

382,62

-3,0%

1.280,9%

61,30

73,71

82,86

99,86

121,27

21,4%

97,9%

70,31

77,06

80,64

101,62

161,91

59,3%

130,3%

0,47

7,45

4,61

5,10

8,10

58,8%

1.618,1%

0,58

7,88

5,79

4,64

8,54

84,1%

1.371,9%

Air and Marine Cargo Insurance

79,85

46,44

52,92

65,93

80,86

22,7%

1,3%

89,77

37,02

49,95

73,19

72,97

-0,3%

-18,7%

Others

88,01

138,24

46,84

157,38

158,42

0,7%

80,0%

74,66

75,48

45,19

193,42

111,24

-42,5%

49,0%

1.394,26

1.582,31

1.780,10

2.064,56

1.946,44

-5,7%

39,6%

1.359,39

1.458,17

1.837,25

2.184,79

2.084,56

-4,6%

53,3%

Credit Insurance and Surety Bonds

Rural Insurance

Property and Casualty

19,9% -

17,8% -

9,4% -

Source: SES (SUSEP) - Data extracted on 07/03/2016

Brazilian Insurance Market | Results and Prospects

Statistics

37 Summary


FenSeg

Car Insurance | Housing Mortgage Insurance Premium and percentage of main lines of business - Car Insurance In BRL$ million and % change Direct Premium

% change % change 2015/2014 2015/2011

2011

2012

2013

2014

2015

15.019,68

17.407,68

20.547,70

21.875,79

22.692,77

3,7%

Voluntary Liability Car Insurance

4.726,80

5.528,74

6.608,43

7.057,33

7.120,38

Car - Care and additional Coverage Options

1.167,13

1.314,01

1.528,06

1.903,05

Dirver and Passenger Personal Accident Insurance

358,28

417,98

486,96

57,68

54,50

8,91

Car Property and Casualty

Car - Casco Insurance

% share in Property and Casualty 2011

2012

2013

2014

2015

51,1%

32,9%

33,9%

33,9%

33,5%

33,0%

0,9%

50,6%

10,4%

10,8%

10,9%

10,8%

10,4%

2.101,14

10,4%

80,0%

2,6%

2,6%

2,5%

2,9%

3,1%

513,37

545,09

6,2%

52,1%

0,8%

0,8%

0,8%

0,8%

0,8%

66,47

53,24

46,10

-13,4%

-20,1%

0,1%

0,1%

0,1%

0,1%

0,1%

24,99

26,69

23,54

24,26

3,0%

172,4%

0,0%

0,0%

0,0%

0,0%

0,0%

21.338,47

24.747,90

29.264,31

31.426,32

32.529,73

3,5%

52,4%

46,8%

48,2%

48,4%

48,1%

47,3%

45.630,70

51.346,11

60.524,22

65.312,57

68.766,52

5,3%

50,7%

100,0%

100,0%

100,0%

100,0%

100,0%

Car - Extended Warranty Green Card

Source: SES (SUSEP) - Data extracted on 07/03/2016

Premium and percentage of main lines of business - Housing Mortgage Insurance In BRL$ million and % change Direct Premium 2011

2012

2013

2014

2015

% change % change 2015/2014 2015/2011

% share in Property and Casualty 2011

2012

2013

2014

2015

Housing Ins. in Market policy - PR

425,25

785,55

1.172,44

1.611,11

2.019,13

25,3%

374,8%

0,9%

1,5%

1,9%

2,5%

2,9%

Housing Ins. in Market policy - DEM

142,45

258,74

393,94

527,41

659,16

25,0%

362,7%

0,3%

0,5%

0,7%

0,8%

1,0%

Housing Ins. - Non Nation.Housing Syst.

834,84

725,97

611,59

509,67

426,71

-16,3%

-48,9%

1,8%

1,4%

1,0%

0,8%

0,6%

0,00

0,00

0,00

-7,14

0,00

100,0%

-

0,0%

0,0%

0,0%

0,0%

0,0%

Housing Mortgage

1.402,54

1.770,26

2.177,97

2.641,05

3.105,01

17,6%

121,4%

3,1%

3,4%

3,6%

4,0%

4,5%

Property and Casualty

45.630,70

51.346,11

60.524,22

65.312,57

68.766,52

5,3%

50,7%

100,0%

100,0%

100,0%

100,0%

100,0%

Housing Ins. - Nation. Housing Syst.

Source: SES (SUSEP) - Data extracted on 07/03/2016

Brazilian Insurance Market | Results and Prospects

Note:

The item “Other Lines of business� encompasses the other lines of business that go into Property Insurance yet do not stand for significant figures.

Statistics

38 Summary


FenSeg

Property Insurance | Extended Warranty Premium and percentage of main lines of business - Property Insurance In BRL$ million and % change Direct Premium

% change % change 2015/2014 2015/2011

2011

2012

2013

2014

2015

Specified and All Risks

1.539,89

1.659,52

1.930,66

2.302,97

2.598,47

12,8%

Homeowners

1.443,48

1.658,96

2.037,42

2.249,70

2.400,15

Commercial Multiple Peril

1.588,34

1.742,10

1.998,59

2.041,69

Multiple Peril

1.128,67

1.160,38

1.262,27

Engineering Risks

933,23

583,88

Other lines of business

318,75

Property Property and Casualty Source:

% share in Property and Casualty 2011

2012

2013

2014

2015

68,7%

3,4%

3,2%

3,2%

3,5%

3,8%

6,7%

66,3%

3,2%

3,2%

3,4%

3,4%

3,5%

2.073,87

1,6%

30,6%

3,5%

3,4%

3,3%

3,1%

3,0%

1.416,48

1.657,55

17,0%

46,9%

2,5%

2,3%

2,1%

2,2%

2,4%

662,18

577,93

504,05

-12,8%

-46,0%

2,0%

1,1%

1,1%

0,9%

0,7%

408,27

506,85

560,31

668,22

19,3%

109,6%

0,7%

0,8%

0,8%

0,9%

1,0%

6.952,36

7.213,11

8.397,98

9.149,08

9.902,30

8,2%

42,4%

15,2%

14,0%

13,9%

14,0%

14,4%

45.630,70

51.346,11

60.524,22

65.312,57

68.766,52

5,3%

50,7%

100,0%

100,0%

100,0%

100,0%

100,0%

SES (SUSEP) - Data extracted on 07/03/2016

Note: The item “other lines of business� encompasses the other lines that go into Property Insurance yet do not stand f or significant figures.

Premium and percentage of the line of business - Extended Warranty In BRL$ million and % change Direct Premium

Extended Warranty Property and Casualty

% change % change 2015/2014 2015/2011

2011

2012

2013

2014

2015

2.255,35

2.610,02

2.901,52

3.123,23

2.850,96

-8,7%

45.630,70

51.346,11

60.524,22

65.312,57

68.766,52

5,3%

% share in Property and Casualty 2011

2012

2013

2014

2015

26,4%

4,9%

5,1%

4,8%

4,8%

4,1%

50,7%

100,0%

100,0%

100,0%

100,0%

100,0%

Source: SES (SUSEP) - Data extracted on 07/03/2016

Brazilian Insurance Market | Results and Prospects

Statistics

39 Summary


FenSeg

Compulsory Vehicle Liability Insurance (Compulsory Vehicle Liability Insurance Premium and share in the line of business - DPVAT In BRL$ million and % change Direct Premium

Compulsory Vehicle Liability Property and Casualty

% change % change 2015/2014 2015/2011

% share in Property and Casualty

2011

2012

2013

2014

2015

2011

2012

2013

2014

2015

6.657,43

7.220,65

8.031,53

8.462,90

8.622,03

1,9%

29,5%

14,6%

14,1%

13,3%

13,0%

12,5%

45.630,70

51.346,11

60.524,22

65.312,57

68.766,52

5,3%

50,7%

100,0%

100,0%

100,0%

100,0%

100,0%

Source: SES (SUSEP) - Data extracted on 07/03/2016

Premium and share in main lines of business - Transport Insurance In BRL$ million and % change Direct Premium 2011 National Transport

2012

2013

2014

2015

% change % change 2015/2014 2015/2011

% share in Property and Casualty 2011

2012

2013

2014

2015

745,89

723,50

843,24

844,44

737,41

-12,7%

-1,1%

1,6%

1,4%

1,4%

1,3%

1,1%

0,00

0,00

0,00

0,00

0,00

-

-

0,0%

0,0%

0,0%

0,0%

0,0%

International Transport

465,48

533,84

515,91

502,31

506,92

0,9%

8,9%

1,0%

1,0%

0,9%

0,8%

0,7%

Civil Liability - Cargo deviation

273,46

300,30

338,12

366,59

394,79

7,7%

44,4%

0,6%

0,6%

0,6%

0,6%

0,6%

23,00

27,53

30,79

28,13

35,78

27,2%

55,6%

0,1%

0,1%

0,1%

0,0%

0,1%

751,09

713,54

739,76

753,99

832,82

10,5%

10,9%

1,6%

1,4%

1,2%

1,2%

1,2%

2.258,91

2.298,72

2.467,83

2.495,46

2.507,72

0,5%

11,0%

5,0%

4,5%

4,1%

3,8%

3,6%

45.630,70

51.346,11

60.524,22

65.312,57

68.766,52

5,3%

50,7%

100,0%

100,0%

100,0%

100,0%

100,0%

Civil Liability of the Carrier

Carrier civil liability in International Tranport - Cargo Other lines of business Transport Property and Casualty

Source: SES (SUSEP) - Data extracted on 07/03/2016

Brazilian Insurance Market | Results and Prospects

Note:

The item “other lines of business� encompasses the other lines that go into Transport Insurance yet do not stand for significant figures.

Statistics

40 Summary


FenSeg

Credit Insurance and Surety Bonds | Rural Insurance Premium and share in main lines of business - Credit Insurance and Surety Bonds In BRL$ million and % change Direct Premium 2011

2012

2013

2014

2015

% change % change 2015/2014 2015/2011

% share in Property and Casualty 2011

2012

2013

2014

2015

Performance bond- Public sector

413,90

541,30

769,24

915,74

1.481,22

61,8%

257,9%

0,9%

1,1%

1,3%

1,4%

2,2%

Internal Credit

199,59

319,38

412,34

518,09

595,91

15,0%

198,6%

0,4%

0,6%

0,7%

0,8%

0,9%

Rental Surety Insurance

237,48

285,81

351,96

369,04

379,14

2,7%

59,7%

0,5%

0,6%

0,6%

0,6%

0,6%

Performance bond- Private sector

273,61

205,90

224,58

276,71

176,51

-36,2%

-35,5%

0,6%

0,4%

0,4%

0,4%

0,3%

Domestic credit Insurance- Commercail Risks

120,16

72,78

40,31

33,48

20,88

-37,6%

-82,6%

0,3%

0,1%

0,1%

0,1%

0,0%

Other lines of business

214,57

166,90

193,34

119,66

76,86

-35,8%

-64,2%

0,5%

0,3%

0,3%

0,2%

0,1%

1.459,30

1.592,08

1.991,77

2.232,71

2.730,53

22,3%

87,1%

3,2%

3,1%

3,3%

3,4%

4,0%

45.630,70

51.346,11

60.524,22

65.312,57

68.766,52

5,3%

50,7%

100,0%

100,0%

100,0%

100,0%

100,0%

Credit Insurance and Surety Bonds Property and Casualty Source:

SES (SUSEP) - Data extracted on 07/03/2016

Note:

Premium and share of the major Lines of Business - Credit Insurance and Surety Bonds

Premium and share in main lines of business - Rural Insurance In BRL$ million and % change Direct Premium 2011

2012

2013

2014

2015

% change % change 2015/2014 2015/2011

% share in Property and Casualty 2011

2012

2013

2014

2015

Rural Pledge Insurance

410,82

529,39

695,16

812,52

823,67

1,4%

100,5%

0,9%

1,0%

1,1%

1,2%

1,2%

Crop Ins. wt Rural Ins. Stability Fund Cov.

259,10

300,49

452,65

731,81

895,36

22,3%

245,6%

0,6%

0,6%

0,7%

1,1%

1,3%

Crop Ins. with Rural Ins. Stability Fund Cov.

214,70

256,41

572,70

648,83

636,89

-1,8%

196,6%

0,5%

0,5%

0,9%

1,0%

0,9%

Farmowners Multiple Peril (Incl. Farming and Cattle Products)

121,65

136,29

202,28

226,51

237,20

4,7%

95,0%

0,3%

0,3%

0,3%

0,3%

0,3%

Farmowner life Insurance

203,77

231,00

336,90

435,68

638,40

46,5%

213,3%

0,4%

0,4%

0,6%

0,7%

0,9%

24,91

21,08

26,04

38,57

39,90

3,5%

60,2%

0,1%

0,0%

0,0%

0,1%

0,1%

1.234,94

1.474,66

2.285,72

2.893,92

3.271,43

13,0%

164,9%

2,7%

2,9%

3,8%

4,4%

4,8%

45.630,70

51.346,11

60.524,22

65.312,57

68.766,52

5,3%

50,7%

100,0%

100,0%

100,0%

100,0%

100,0%

Other lines of business Rural Insurance Property and Casualty

Source: SES (SUSEP) - Data extracted on 07/03/2016

Brazilian Insurance Market | Results and Prospects

Note: The item “other lines of business� encompasses the other lines that go into Rural Insurance Insurance yet do not stand for significant figures.

Statistics

41 Summary


FenSeg

Civil liability | Air and Marine Cargo Insurance Premium and share in main lines of business - Civil liability insurance In BRL$ million and % change Direct Premium 2011

2012

2013

2014

2015

% change % change 2015/2014 2015/2011

% share in Property and Casualty 2011

2012

2013

2014

2015

General liability

639,31

680,51

770,00

812,04

872,00

7,4%

36,4%

1,4%

1,3%

1,3%

1,2%

1,3%

D&O Civil liability

168,72

195,57

224,65

227,63

368,14

61,7%

118,2%

0,4%

0,4%

0,4%

0,3%

0,5%

Professional liability

101,64

135,15

185,34

209,41

235,84

12,6%

132,0%

0,2%

0,3%

0,3%

0,3%

0,3%

17,59

32,39

37,58

41,46

43,34

4,5%

146,4%

0,0%

0,1%

0,1%

0,1%

0,1%

927,26

1.043,63

1.217,57

1.290,55

1.519,33

17,7%

63,9%

2,0%

2,0%

2,0%

2,0%

2,2%

45.630,70

51.346,11

60.524,22

65.312,57

68.766,52

5,3%

50,7%

100,0%

100,0%

100,0%

100,0%

100,0%

Environmental Risks liability Civil liability Property and Casualty

Source: SES (SUSEP) - Data extracted on 07/03/2016

Premium and share in main lines - Air and Marine Cargo Insurance In BRL$ million and % change Direct Premium 2011

2012

2013

2014

2015

% change % change 2015/2014 2015/2011

% share in Property and Casualty 2011

2012

2013

2014

2015

Aircraft Hull Insurance

224,03

208,09

205,80

245,01

298,37

21,8%

33,2%

0,5%

0,4%

0,3%

0,4%

0,4%

Marine Hull Insurance

182,06

168,28

196,18

214,32

234,76

9,5%

29,0%

0,4%

0,3%

0,3%

0,3%

0,3%

Comprehensive port Operator Ins.

65,77

75,05

117,42

131,52

114,33

-13,1%

73,8%

0,1%

0,1%

0,2%

0,2%

0,2%

Volunt. Aircraft liability Ins.

34,73

94,06

105,48

108,04

105,98

-1,9%

205,1%

0,1%

0,2%

0,2%

0,2%

0,2%

Other lines of business

87,35

56,92

58,60

64,14

55,98

-12,7%

-35,9%

0,2%

0,1%

0,1%

0,1%

0,1%

593,94

602,40

683,48

763,03

809,42

6,1%

36,3%

1,3%

1,2%

1,1%

1,2%

1,2%

45.630,70

51.346,11

60.524,22

65.312,57

68.766,52

5,3%

50,7%

100,0%

100,0%

100,0%

100,0%

100,0%

Air and Marine Cargo Insurance Property and Casualty

Source:SES (SUSEP) - Data extracted on 07/03/2016

Brazilian Insurance Market | Results and Prospects

Note:

The item “other lines of business� encompasses the other lines that go into Air and Maritime Transport Insurance yet do not stand for significant figures

Statistics

42 Summary


FenSeg

Claims Claims in the Property and Casualty segment In BRL$ billion and % change

Property and Casualty

2011

2012

2013

2014

2015

% change 2015/2014

% change 2015/2011

23,4

27,5

30,3

34,1

37,9

11,1%

61,8%

Source: SES (SUSEP) - Data extracted on 07/03/2016

Claims in Property and Casualty In BRL$ billlion

2011 2012 2013 2014 2015

23,4 bi 27,5 bi 30,3 bi 37,9 bi 12,9 bi

Source: SES (SUSEP) - Data extracted on 07/03/2016

Brazilian Insurance Market | Results and Prospects

Statistics

43 Summary


FenSeg

Claims per line of business group Claims in Property and Casualty per line group In BRL$ million and % change Loss incurred

% change 2015/2014

% change 2015/2011

2011

2012

2013

2014

2015

13.598,79

14.961,84

17.299,08

19.626,14

20.377,74

3,8%

49,8%

DPVAT- Compulsory Vehicle Liability Insurance

2.909,90

3.098,16

3.490,82

3.682,06

3.740,78

1,6%

28,6%

Property

3.642,59

4.056,24

4.183,68

4.839,11

5.636,07

16,5%

54,7%

395,53

716,14

540,07

375,54

517,55

37,8%

30,8%

1.241,51

1.432,33

1.517,88

1.777,23

1.709,18

-3,8%

37,7%

Credit Insurance and Surety Bonds

226,05

725,45

648,65

679,10

1.108,22

63,2%

390,3%

Extended Warranty

312,50

350,44

408,43

473,14

509,16

7,6%

62,9%

Civil Liability

261,30

411,31

507,82

760,41

1.245,76

63,8%

376,8%

Rural Insurance

477,06

740,20

801,05

1.261,07

1.688,99

33,9%

254,0%

Air and Marine Cargo Insurance

335,19

656,09

577,22

364,65

828,04

127,1%

147,0%

14,35

324,32

348,33

282,26

531,22

88,2%

3602,3%

23.414,76

27.472,53

30.323,03

34.120,68

37.892,70

11,1%

61,8%

Car

Housing Mortgage Insurance Transport Insurance

Others Property and Casualty Source: SES (SUSEP) - Data extracted on 07/03/2016

Brazilian Insurance Market | Results and Prospects

Statistics

44 Summary


FenSeg

Claim Distribution per Line of Business group Distribution of clamis per line group In %

1,4% 2,2%

Car

3,3% 1,3%

Compulsory Vehicle Liability Insurance

4,5%

2,9%

1,4%

Property Insurance Housing Mortgage Insurance

4,5%

Transportation insurance

53,8% 14,9%

Credit Insurance and Surety Bonds Extended Warranty Civil Liability Insurance

9,9% Rural Insurance Air and Marine Cargo Insurance Others

Source:

SES (SUSEP) - Data extracted on 07/03/2016

Brazilian Insurance Market | Results and Prospects

Statistics

45 Summary


FenSeg

Claims per Region Claims per region and line group In BRL$ million and % change Direct loss 2012

2013

2014

2015

1.395,33

1.485,75

1.803,97

1.950,97

2.349,85

20,4%

68,4%

0,14

0,83

96,02

1.110,95

849,27

-23,6%

601.474,5%

263,53

269,23

78,15

181,70

36,21

-80,1%

-86,3%

Housing Mortgage Insurance

31,42

33,95

34,77

42,74

49,40

15,6%

57,2%

Transportation insurance

39,27

76,39

93,47

40,08

145,35

262,7%

270,1%

Credit Insurance and Surety Bonds

22,80

57,87

62,47

13,05

284,11

2.077,1%

1.145,9%

Extended Warranty

12,08

15,35

25,48

37,71

34,09

-9,6%

182,3%

Civil Liability Insurance

10,82

4,25

8,21

10,88

22,93

110,7%

111,9%

Rural Insurance

9,04

15,92

42,60

125,45

112,62

-10,2%

1.146,1%

Air and Marine Cargo Insurance

7,54

24,00

13,85

19,93

15,43

-22,6%

104,6%

Others

4,83

15,54

18,92

21,69

21,03

-3,0%

335,3%

1.796,80

1.999,08

2.277,89

3.555,15

3.920,29

10,3%

118,2%

8.640,00

9.525,73

10.786,52

12.431,49

11.846,13

-4,7%

37,1%

0,53

1,92

80,55

937,84

806,12

-14,0%

152.587,5%

2.573,18

3.235,13

2.495,44

3.044,88

3.911,56

28,5%

52,0%

230,47

245,16

266,34

294,62

375,00

27,3%

62,7%

1.071,26

1.184,33

1.272,44

1.255,23

1.090,18

-13,1%

1,8%

Credit Insurance and Surety Bonds

384,98

754,34

754,39

894,97

928,81

3,8%

141,3%

Extended Warranty

286,13

331,55

346,65

350,19

385,90

10,2%

34,9%

Civil Liability Insurance

204,58

332,78

403,40

492,20

937,49

90,5%

358,3%

Rural Insurance

175,86

236,25

355,15

476,88

402,34

-15,6%

128,8%

Air and Marine Cargo Insurance

217,00

580,44

500,81

339,25

716,68

111,3%

230,3%

Others

-16,86

259,95

255,34

183,39

338,82

84,8%

2.110,1%

13.767,13

16.687,58

17.517,04

20.700,93

21.739,04

5,0%

57,9%

Compulsory Vehicle Liability Insurance Property Insurance

Total in the Northeastern Region Car Compulsory Vehicle Liability Insurance Property Insurance Housing Mortgage Insurance Transportation insurance Southeast

% change 2015/2011

2011 Car

Northeast

% change 2015/2014

Total in the Southeastern Region

Brazilian Insurance Market | Results and Prospects

Statistics

46 Summary


FenSeg

Claims per region Continuação

Claims per region and line group In BRL$ million and % change Direct loss 2012

2013

2014

2015

1.330,62

1.315,58

1.663,40

1.866,57

1.931,70

3,5%

45,2%

0,08

0,16

27,80

320,97

275,07

-14,3%

343.164,3%

124,43

153,18

352,25

208,15

213,24

2,4%

71,4%

Housing Mortgage Insurance

27,00

39,53

48,55

59,06

58,73

-0,5%

117,5%

Transportation insurance

29,28

29,75

47,74

43,45

47,61

9,6%

62,6%

Credit Insurance and Surety Bonds

33,69

116,72

78,12

69,13

144,55

109,1%

329,1%

Extended Warranty

7,31

7,69

7,83

9,79

12,22

24,8%

67,1%

Civil Liability Insurance

1,46

5,51

6,42

10,92

4,68

-57,2%

220,1%

70,26

102,21

89,65

137,25

340,32

147,9%

384,4%

Air and Marine Cargo Insurance

4,78

18,77

7,27

13,24

10,26

-22,5%

114,6%

Others

2,61

4,39

8,77

8,88

12,60

41,9%

383,0%

1.631,53

1.793,48

2.337,80

2.747,41

3.050,99

11,0%

87,0%

270,29

295,88

344,12

371,52

426,45

14,8%

57,8%

0,08

0,38

27,48

291,99

211,15

-27,7%

252.372,5%

44,74

20,80

118,41

16,45

45,65

177,5%

2,0%

6,05

6,45

7,76

9,28

9,81

5,7%

62,1%

13,44

32,43

17,12

22,99

23,45

2,0%

74,5%

Credit Insurance and Surety Bonds

1,83

1,40

8,60

5,03

23,16

360,5%

1.163,0%

Extended Warranty

0,63

0,60

1,47

3,09

3,75

21,3%

493,5%

-0,28

-3,61

1,61

2,63

4,04

53,7%

1.526,7%

Rural Insurance

2,85

4,83

6,52

7,02

24,32

246,3%

754,1%

Air and Marine Cargo Insurance

1,67

2,69

4,08

2,60

10,57

305,7%

533,1%

Others

1,32

4,43

5,84

3,61

3,71

2,8%

180,1%

342,63

366,28

543,00

736,22

786,06

6,8%

129,4%

Compulsory Vehicle Liability Insurance Property Insurance

Rural Insurance

Total in the Midwestern Region Car Compulsory Vehicle Liability Insurance Property Insurance Housing Mortgage Insurance Transportation insurance North

% change 2015/2011

2011 Car

Midwest

% change 2015/2014

Civil Liability Insurance

Total in the Northern Region

Brazilian Insurance Market | Results and Prospects

Statistics

47 Summary


FenSeg

Claims per Region Continuação

Claims per region and line group In BRL$ million and % change Direct loss

% change 2015/2011

2011

2012

2013

2014

2015

2.908,84

3.320,11

3.485,00

3.907,02

4.433,40

13,5%

52,4%

0,92

0,61

66,73

449,07

373,21

-16,9%

40.254,3%

484,89

429,55

736,44

691,23

769,99

11,4%

58,8%

47,29

53,50

60,10

70,88

81,46

14,9%

72,3%

254,28

289,94

285,54

308,47

337,25

9,3%

32,6%

Credit Insurance and Surety Bonds

23,97

24,59

38,93

41,89

81,39

94,3%

239,5%

Extended Warranty

10,42

13,22

19,91

22,99

40,89

77,8%

292,5%

Civil Liability Insurance

24,19

36,66

41,23

62,22

74,38

19,5%

207,4%

207,90

384,01

286,35

440,07

713,73

62,2%

243,3%

Air and Marine Cargo Insurance

42,68

18,16

29,65

14,34

22,05

53,8%

-48,3%

Others

13,64

29,29

39,74

38,33

43,09

12,4%

215,8%

4.019,02

4.599,63

5.089,62

6.046,52

6.970,86

15,3%

73,4%

21.657,27

25.454,77

27.766,08

33.786,24

36.467,24

7,9%

68,4%

Car Compulsory Vehicle Liability Insurance Property Insurance Housing Mortgage Insurance Transportation insurance South

% change 2015/2014

Rural Insurance

Total in the Southern Region Brazil Source: SES (SUSEP) - Data extracted on 07/03/2016

Brazilian Insurance Market | Results and Prospects

Note:

Amounts not listed in specific geographic regions and overseas come under “Other”, once they do not stand for significant figures.

Statistics

48 Summary


FenSeg

Recovery of Indemnity paid in Reinsurance Recovery of indemnity corresponding to reinsurance per line group In BRL$ million and % change Recovery of indemnity corresponding to reinsurance

% change 2015/2014

% change 2015/2011

2011

2012

2013

2014

2015

128,52

141,90

160,86

277,36

374,41

35,0%

191,3%

-1,67

0,18

-0,02

-0,05

0,00

100,7%

100,0%

2.174,82

2.533,69

2.372,88

2.621,97

2.875,88

9,7%

32,2%

16,03

14,59

18,39

20,30

23,38

15,2%

45,9%

Transportation insurance

230,39

322,33

344,27

405,88

458,49

13,0%

99,0%

Credit Insurance and Surety Bonds

126,96

507,14

373,19

231,97

510,95

120,3%

302,4%

0,00

0,00

0,00

0,00

0,00

-100,0%

-

95,97

187,15

182,32

306,60

628,91

105,1%

555,3%

Rural Insurance

245,29

483,41

424,69

673,12

940,40

39,7%

283,4%

Air and Marine Cargo Insurance

260,54

547,75

456,28

318,77

672,23

110,9%

158,0%

Others

-18,93

230,40

204,95

133,42

379,74

184,6%

2106,4%

3.257,93

4.968,52

4.537,79

4.989,32

6.864,41

37,6%

110,7%

Car Compulsory Vehicle Liability Insurance Property Insurance Housing Mortgage Insurance

Extended Warranty Civil Liability Insurance

Property and Casualty Source: SES (SUSEP) - Data extracted on 07/03/2016

Brazilian Insurance Market | Results and Prospects

Statistics

49 Summary


FenSeg

Coinsurance Claims Accepted and assigned coinsurance claim per line group In BRL$ million and % change Accecpted coinsurance claim

% change % change 2015/2014 2015/2011

2011

2012

2013

2014

2015

82,69

41,56

43,47

45,23

58,38

29,1%

0,09

0,38

0,03

0,04

-0,02

Property Insurance

496,56

305,58

495,57

440,30

Housing Mortgage Insurance

2,10

5,58

7,21

40,91

60,82

Credit Insurance and Surety Bonds

2,09

Extended Warranty

Assigned coinsurance claim

% change % change 2015/2014 2015/2011

2011

2012

2013

2014

2015

-29,4%

86,64

45,24

43,68

50,58

58,66

16,0%

-32,3%

-153,6%

-125,8%

-0,25

-0,07

0,00

0,02

0,00

-86,1%

101,2%

466,28

5,9%

-6,1%

398,07

394,41

217,70

201,05

285,40

42,0%

-28,3%

6,88

-2,55

-137,1%

-221,9%

2,61

5,86

7,38

6,61

-2,94

-144,5%

-212,5%

76,88

76,13

90,48

18,9%

121,2%

42,46

73,08

92,46

84,92

79,77

-6,1%

87,9%

13,37

1,85

31,91

46,43

45,5%

2.116,3%

-4,42

29,31

8,30

151,63

3,79

-97,5%

185,8%

0,00

0,05

7,00

38,54

38,84

0,8%

-

2,02

3,01

11,90

32,68

45,39

38,9%

2.151,3%

Civil Liability Insurance

6,22

7,75

19,45

18,65

38,25

105,1%

514,7%

1,36

4,70

16,79

23,84

110,04

361,5%

8.011,7%

Rural Insurance

0,19

0,72

0,25

2,18

0,88

-59,7%

373,8%

-0,12

1,77

2,72

1,95

1,01

-48,1%

914,5%

24,58

68,05

38,85

22,46

32,16

43,2%

30,9%

18,98

58,08

41,14

38,73

11,54

-70,2%

-39,2%

-10,89

0,79

35,43

8,33

156,73

1.781,5%

1.539,0%

-17,87

0,96

29,33

26,63

124,22

366,5%

795,3%

644,54

504,63

725,97

690,64

925,85

34,1%

43,6%

529,46

616,34

471,39

618,65

716,89

15,9%

35,4%

Car Compulsory Vehicle Liability Insurance

Transportation insurance

Air and Marine Cargo Insurance Others Property and Casualty

Source: SES (SUSEP) - Data extracted on 07/03/2016

Brazilian Insurance Market | Results and Prospects

Statistics

50 Summary


FenSeg

Salvage Recovery | Trading Expenses Development Recovery of salvage and reimbursement per line group In BRL$ million and % change 2011

2012

2013

2014

2015

% change 2015/2014

% change 2015/2011

1.654,82

1.580,87

1.994,60

2.474,16

2.606,39

5,3%

57,5%

0,14

-0,14

3,05

0,01

0,57

5.741,7%

310,5%

31,90

20,36

30,08

77,40

69,26

-10,5%

117,2%

0,00

0,45

0,08

0,01

0,01

59,9%

6.109,8%

Transportation insurance

196,17

165,62

183,31

148,71

158,48

6,6%

-19,2%

Credit Insurance and Surety Bonds

144,54

182,51

249,57

296,22

363,63

22,8%

151,6%

Extended Warranty

1,41

4,49

4,97

5,47

5,14

-6,0%

265,5%

Civil Liability Insurance

1,81

1,45

1,96

4,01

2,80

-30,1%

54,9%

Rural Insurance

3,47

3,87

2,47

4,12

6,11

48,3%

76,1%

Air and Marine Cargo Insurance

9,18

2,38

6,38

14,68

76,44

420,9%

732,9%

Others

0,51

0,62

2,25

0,67

3,96

492,5%

675,4%

2.043,94

1.962,49

2.478,71

3.025,45

3.292,79

8,8%

61,1%

Car Compulsory Vehicle Liability Insurance Property Insurance Housing Mortgage Insurance

Property and Casualty Source: SES (SUSEP) - Data extracted on 07/03/2016

Development of Trading expenses in Property and Casualty In BRL$ billlion

2011 2012 2013 2014 2015

7,6 bi 8,5 bi 9,6 bi 11,8 bi 12,9 bi Source: SES (SUSEP) - Data extracted on 07/03/2016

Brazilian Insurance Market | Results and Prospects

Statistics

51 Summary


FenaPrevi

Certificate Numbers | Technical Provisions | Portability Number of Individual Coverage Plan Certificates - Accrual Plans per type of contract In thousands and % change 2011 Group plans

Individual plans

Corporate

2012

2013

2014

2015

% change 2015/2014

% change 2015/2011

186,06

258,06

263,24

243,27

295,48

21,5%

58,8%

Certificates

2.903,55

2.627,20

2.721,32

2.802,83

3.207,50

14,4%

10,5%

Individual

7.165,30

7.690,99

8.407,62

8.484,94

9.293,89

9,5%

29,7%

Certificates

8.671,39

9.368,51

9.884,63

10.305,42

11.298,09

9,6%

30,3%

Source: FenaPrevi

Note:

1) Amounts in this table only refer to data supplied by companies affiliated with FenaPrevi. 2) Amounts that refer to traditional plans cannot be segregated into risk and accrual, hence stand for their total amount in this table.

Technical provisions for Individual Coverage Plans - Accrual Plans per type of plan In BRL$ billion and % change 2011

2012

2013

2014

2015

% change 2015/2014

% change 2015/2011

VGBL Family

159,87

209,44

242,50

300,43

379,23

26,2%

137,2%

PGBL Family

65,15

75,18

80,76

90,89

104,02

14,5%

59,7%

Traditional Accrual Plans

30,25

31,22

31,68

29,97

32,38

8,0%

7,0%

255,27

315,85

354,93

421,29

515,63

22,4%

102,0%

Accrual plans Source:

Note:

SES (SUSEP) - Data extracted on 07/03/2016

Provisions for the PGBL family of products [Free Benefit Plan] and VGBL family of products [Individual Retirement Plan] take into account only that portion of the Mathematical Provision for Benefits to be Granted (PMBAC).

Portability in Individual Coverage - Accrual plans In BRL$ billion, in units and % change

Amounts from Operations Number of Operations

2011

2012

2013

2014

2015

% change 2015/2014

% change 2015/2011

3,84

5,69

6,65

8,16

10,23

25,4%

166,4%

47.286

57.774

61.344

62.486

71.237

14,0%

50,7%

Source: CESER/CNseg

Brazilian Insurance Market | Results and Prospects

Note:

Amounts in this table only refer to data supplied by companies affiliated with FenaPrevi that use SIDE - Electronic Document Exchange System.

Statistics

52 Summary


FenaPrevi

Redemption Modes | Revenue Surrender of Individual Coverage in Accrual Plans per type of plan In BRL$ billion and % change 2011

2012

2013

2014

2015

PGBL Family

3,50

3,76

4,46

5,41

VGBL Family

18,95

22,90

34,38

1,11

1,02

23,55

27,68

Traditional Accrual Plans Accrual plans Source:

SES (SUSEP) - Data extracted on 07/03/2016

Note:

% change 2015/2014

% change 2015/2011

6,30

16,5%

80,0%

33,58

38,90

15,8%

105,3%

1,03

1,16

1,39

19,8%

24,8%

39,87

40,14

46,58

16,0%

97,8%

Amounts that refer to endowment lines were added to the risk plans segment, although they display mixed features of risk and accrual.

Revenue from Individual Coverage - Risk Plans per line of business groups In BRL$ billion and % change 2011

2012

2013

2014

2015

% change 2015/2014

% change 2015/2011

Group Insurance

16,90

19,00

22,17

23,45

24,59

4,9%

45,5%

Individual Insurance

2,15

2,86

3,57

4,21

5,18

23,0%

140,3%

Traditional Risk Plans

2,29

2,49

2,86

3,08

3,03

-1,7%

32,4%

21,34

24,34

28,60

30,74

32,79

6,7%

53,7%

Risk Plans Source:

SES (SUSEP) - Data extracted on 07/03/2016

Note:

Amounts that refer to endowment lines were added to the risk plans segment, although they display mixed features of risk and accrual.

Revenue from Individual Coverage - Accrual Plans per type of plan In BRL$ billion and % change 2011

2012

2013

2014

2015

% change 2015/2014

% change 2015/2011

VGBL Family

43,39

59,57

62,26

71,39

86,15

20,7%

98,5%

PGBL Family

7,01

7,53

7,92

8,38

9,00

7,4%

28,3%

Traditional Accrual Plans

1,04

1,01

0,92

0,87

0,85

-2,0%

-18,0%

51,44

68,12

71,10

80,64

96,00

19,0%

86,6%

Accrual plans Source:

SES (SUSEP) - Data extracted on 07/03/2016

Note:

1) Amounts that refer to endowment lines were added to the risk plans segment, although they display mixed features of risk and accrual. 2) It should be noted that Revenue from Accrual Plans equal to the total premium and payment amounts paid to support security plans, and are deposited into the Mathematical Provision for Benefits to be Granted (PMBAC).

Brazilian Insurance Market | Results and Prospects

Statistics

53 Summary


FenaPrevi

Provision Distribution | Revenue Distribution Distribution of technical provisions from Individual Coverage Plans Accrual Plansper type of contract

Distribution of revenue from Individual Coverage Plans Risk Plans per line of business

In percentages

In percentages

1,3%

1,4% 2,0% 13,6%

16,7% 2,9% 27,7% 16,7% 3,2%

83,5% 41,6%

Lender Group

Minor

Individual Plans

Life

Personal Accidents Mixed Endowments

Random Events Serious or Terminal Diseases

Other lines of business

Mourning and Funeral

Source: FenaPrevi

Source:

Note:

Note: 1) Amounts that refer to endowment lines were added to the risk plans, although they display mixed features of risk and accrual. 2) Lines of business whose share was lower than 1% have been added to “Other Lines of Business.� 3) Only Risk Plan Products with an insurance nature have been considered.

Amounts in this table only refer to data supplied by companies affiliated with FenaPrevi.

Brazilian Insurance Market | Results and Prospects

SES (SUSEP) - Data extracted on 07/03/2016

Statistics

54 Summary


FenaPrevi

Revenue Revenue from Individual Coverage Plans - Risk Plans per line of business In BRL$ million and % change 2011 Group Individual Insurance Insurance

2012 Total

Group Individual Insurance Insurance

2013 Total

Group Individual Insurance Insurance

2014 Total

Group Individual Insurance Insurance

2015 Total

Group Individual Insurance Insurance

% change 2015/2014 Total

Funeral Assist.

154,72

9,08

163,80

159,56

11,71

171,27

241,62

14,52

256,15

301,81

25,25

327,06

330,72

58,12

Education Ins.

19,11

0,01

19,12

20,23

0,00

20,24

29,86

0,00

29,86

30,72

0,00

30,72

27,07

0,00

Travel Ins.

38,16

7,42

45,57

53,36

21,23

74,59

63,90

29,52

93,42

103,30

48,92

152,22

150,60

73,97

224,57

Lender

4.428,53

39,64

4.468,17 5.744,17

66,21

5.810,38 6.934,37

71,67

7.006,04 7.843,43

136,69

7.980,11 8.021,38

209,99

Life Ins.

7.870,03

712,64

8.582,67 8.282,14

912,31

11.240,41 10.513,95 1.865,37

0,25

1,08

1,33

0,05

1,61

1,66

0,05

1,88

1,93

0,05

2,01

2,06

0,06

390,38

138,83

529,21

461,53

176,26

637,78

520,02

213,25

733,27

519,10

252,94

772,04

0,00

73,75

73,75

0,00

37,12

37,12

0,00

30,33

30,33

0,00

15,01

15,01

3.559,82

361,03

3.920,85 3.879,08

398,16

4.277,25 4.221,12

558,99

4.780,12 4.399,44

563,04

Serious or terminal diseases

275,07

25,02

300,09

Mixed endowments

113,21

762,44

875,65

48,92

23,48

72,40

36,51

77,20

113,71

20,57

52,88

73,45

25,11

23,22

48,33

33,62

24,53

0,00

0,00

0,00

0,00

0,00

0,00

0,00

7,68

7,68

0,00

80,59

80,59

0,00

PCHV Random events Ins. Pure endowment Personal accidents

Unemployment / loss of revenue Microins. Risk Plans

16.898,20 2.154,42

Source:

359,74

9.194,46 9.741,34 1.294,06

33,61

393,35

0,00 1.122,93

1.122,93

19.052,62 18.996,39 2.858,34

399,49

44,47

443,96

0,00 1.249,79

1.249,79

21.854,73 22.172,33 3.569,06

SES (SUSEP) - Data extracted on 07/03/2016

Brazilian Insurance Market | Results and Prospects

11.035,40 9.756,77 1.483,63

Note:

466,70

Group Individual Insurance Insurance

Total

130,2%

18,9%

113,8%

540,1%

137,4%

27,07 -11,9%

-112,5%

-11,9%

41,6%

-102,3%

41,6%

45,8%

51,2%

47,5%

294,7%

897,4%

392,8%

8.231,37

2,3%

53,6%

3,1%

81,1%

429,8%

84,2%

12.379,32

7,8%

25,7%

10,1%

33,6%

161,8%

44,2%

2,13

2,19

12,8%

6,1%

6,2%

-77,5%

97,6%

64,8%

588,05

378,37

966,42

13,3%

49,6%

25,2%

50,6%

172,6%

82,6%

0,00

16,86

16,86

-

12,4%

12,4%

-77,1%

-77,1%

4.962,48 4.409,01

559,37

4.968,37

0,2%

-0,7%

0,1%

23,9%

54,9%

26,7%

72,93

586,62

10,1%

41,8%

13,2%

86,8%

191,4%

95,5%

0,00 1.841,92

1.841,92

-

20,6%

20,6%

-100,0%

141,6%

110,3%

58,15

33,9%

5,6%

20,3%

-31,3%

4,5%

-19,7%

74,41

74,41

-

-7,7%

-7,7%

-

27.656,14 24.588,15 5.177,97

29.766,12

23,0%

7,6%

518,13

0,00 1.526,98

1.526,98

25.741,40 23.446,44 4.209,70

Total

9,6%

51,43

513,69

388,84

Group Individual Insurance Insurance

% change 2015/2011

4,9%

-

45,5%

-

-

140,3%

56,2%

1) Amounts that refer to endowment lines were added to the risk plans segment, although they display mixed features of risk and accrual. 2) Only Risk Plan Products with an insurance nature have been considered

Statistics

55 Summary


FenaPrevi

Claims Claimf from Individual Coverage Plans- Risk Plans per line of business In BRL$ million and % change 2011

2012

2013

2014

2015

% change 2015/2014 % change 2015/2011

Group Individual Group Individual Group Individual Group Individual Group Individual Group Individual Group Individual Insurance Insurance Insurance Insurance Insurance Insurance Insurance Insurance Insurance Insurance Insurance Insurance Insurance Insurance Funeral Assistance

14,37

0,80

37,98

1,61

143,58

2,32

90,41

3,28

75,46

5,75

-16,5%

Education Insurance

15,17

0,00

12,63

0,00

18,62

0,00

26,58

0,00

17,99

0,00

-32,3%

Travel Insurance

11,38

1,03

6,22

2,82

15,97

5,72

34,71

13,68

52,58

17,95

51,5%

857,86

0,23

914,62

2,60

840,71

4,91

1.168,81

8,66

1.146,67

21,65

3.705,59

129,61

4.124,82

160,56

4.376,68

176,31

4.861,34

251,10

4.970,77

0,74

0,35

-0,04

0,23

0,00

0,74

-0,01

3,33

126,58

11,56

128,95

20,40

123,28

37,62

144,49

0,00

39,30

0,00

34,11

0,00

17,66

425,13

87,56

555,58

113,84

694,29

Serious or terminal diseases

28,53

9,55

35,37

11,22

Mixed endowments

-0,63

16,35

0,01

Unemployment / loss of revenue

3,86

0,60

Microinsurance

0,00 5.188,58

Lender Life Insurance PCHV Random events Insurance Pure endowment Personal accidents

Risk Plans

Source:

75,2%

623,5%

18,6%

-

31,2%

362,2%

1635,4%

-1,9%

150,0%

33,7%

9133,1%

386,86

2,3%

54,1%

34,1%

198,5%

0,05

3,98

738,4%

19,4%

-92,6%

1023,3%

42,73

155,65

51,84

7,7%

21,3%

23,0%

348,5%

0,00

2,63

0,00

-9,13

-

133,49

728,76

120,67

757,37

163,65

3,9%

35,6%

78,2%

86,9%

48,43

15,83

77,24

0,98

64,10

39,19

-17,0%

3884,7%

124,7%

310,4%

12,33

0,00

18,10

-0,03

37,38

0,00

114,29

99,9%

205,7%

100,0%

599,2%

6,45

6,88

5,59

13,15

4,00

13,62

5,72

20,34

43,1%

49,3%

48,2%

3305,7%

0,00

0,00

0,00

0,00

0,60

0,00

2,41

0,00

3,58

296,93

5.822,60

366,61

6.267,15

426,44

7.136,30

500,48

7.246,38

819,96

SES (SUSEP) - Data extracted on 07/03/2016

Brazilian Insurance Market | Results and Prospects

Note:

-

425,1%

-447,2%

-

48,7%

1,5%

63,8%

-

-123,2%

-

-

39,7%

176,1%

1) Amounts that refer to endowment lines were added to the risk plans segment, although they display mixed features of risk and accrual. 2) Only Risk Plan Products with an insurance nature have been considered.

Statistics

56 Summary


FenaPrevi

Benefits Paid Benefits paid from Individual Coverage Plans- Traditional Risk Plans In units and % change 2011

2012

2013

2014

2015

% change 2015/2014

% change 2015/2011

Lump sum

27.525

35.566

33.543

28.113

38.507

37,0%

39,9%

Pension (disability and death)

20.330

19.257

18.597

16.807

18.741

11,5%

-7,8%

47.855

54.823

52.140

44.920

57.248

27,4%

19,6%

Traditional Risk Plans Source: FenaPrevi

Brazilian Insurance Market | Results and Prospects

Note:

Amounts in this table only refer to data supplied by companies affiliated with FenaPrevi.

Statistics

57 Summary


FenaSaúde

Revenue, GDP and Inflation Revenue and penetration to Supplementary Health GDP per type of operator - Nominal and Real In BRL$ billion and % change 2011 Self-management

2012

2013

2014

2015

% change 2015/2014 Nominal

Real

% change 2015/2011

9,19

10,45

12,07

14,33

16,88

17,8%

6,4%

83,6%

30,44

34,24

38,45

44,50

50,03

12,4%

1,6%

64,4%

Dental Cooperative

0,48

0,53

0,55

0,63

0,68

7,2%

-3,1%

40,0%

Philantropic entities

1,93

2,09

2,24

2,12

2,23

5,2%

-4,9%

15,9%

Group Medical Care

24,80

28,05

31,90

36,13

41,09

13,7%

2,8%

65,7%

Group Dental Care

1,59

1,79

1,96

2,21

2,54

15,2%

4,1%

60,2%

16,86

20,07

23,41

28,56

32,44

13,6%

2,6%

92,4%

85,30

97,23

110,58

128,47

145,90

13,6%

2,6%

71,1%

GDP

4.373,7

4.805,9

5.316,5

5.687,3

5.904,3

3,8%

-6,2%

35,0%

GDP from Services

2.516,8

2.819,9

3.166,5

3.454,0

3.642,3

5,5%

-4,7%

44,7%

Sector share in GDP

1,95%

2,02%

2,08%

2,26%

2,47%

0,21 p.p.

-

0,52 p.p.

IPCA - Extended Consumer Price Index

6,50%

5,84%

5,91%

6,41%

10,67%

-

-

-

Physician Cooperative

Ins. Companies Specializing in Healthcare Supplementary Health

Source:

DIOPS (ANS) - Data extracted on 05/05/2016 SGS (BCB) - Data extracted on 06/05/2016

Brazilian Insurance Market | Results and Prospects

Note:

1) The modality “Benefits Manager” was not addressed by the report since its figures were not significant. 2) The amount released for the Supplementary Healthcare market was estimated by account 311 (Net consideration – Retained Premiums).

Statistics

58 Summary


FenaSaúde

Affiliated Companies’ Revenue per Modality | Healthcare Expenses Revenue of companies affiliated with FenaSaúde per type of operator In BRL$ billion and % change Modality

2011

2012

2013

2014

2015

Group Medical Care

13,35

15,49

17,83

20,86

25,25

21,0%

47,1%

Group Dental Care

1,09

1,25

1,37

1,50

1,68

12,4%

35,6%

11,85

13,81

21,10

27,92

32,24

15,5%

63,2%

85,30

97,23

110,58

128,47

145,90

13,6%

41,5%

Ins. companies specializing in healthcare Supplementary Health Market Source:

DIOPS (ANS) - Data extracted on 05/05/2016

Note:

% change 2015/2014

% change 2015/2011

The amount released for the Supplementary Healthcare market was estimated by account 311 (Net consideration – Retained Premiums).

Healthcare expenses in Supplementary Health per type of operator In BRL$ billion and % change 2011 Self-management

2012

2013

2014

2015

% change 2015/2014

% change 2015/2011

8,47

9,89

11,21

13,35

16,17

90,8%

90,8%

24,65

28,01

31,61

36,77

41,26

67,4%

67,4%

Dental Cooperative

0,31

0,34

0,32

0,37

0,41

33,6%

33,6%

Philantropic entities

1,56

1,73

1,85

1,71

1,72

10,3%

10,3%

Group Medical Care

19,35

22,42

25,89

29,40

32,51

68,0%

68,0%

Group Dental Care

0,67

0,76

0,78

0,89

1,07

59,0%

59,0%

13,89

16,82

19,85

24,48

28,37

104,3%

104,3%

68,90

79,97

91,52

106,97

121,50

76,3%

76,3%

Physician Cooperative

Ins. Companies Specializing in Healthcare Supplementary Health

Source:

DIOPS (ANS) - Data extracted on 05/05/2016

Brazilian Insurance Market | Results and Prospects

Note:

The amount released for the Supplementary Healthcare market was estimated by account 311 (Net consideration – Retained Premiums).

Statistics

59 Summary


FenaSaúde

Affiliated Companies’ Healthcare Expenses | Combined Index Combined Index composition of companies affiliated with FenaSaúde In BRL$ billion and % change Modality

2011

2012

2013

2014

2015

% change 2015/2014

% change 2015/2011

Group Medical Care

10,55

12,46

14,61

17,36

20,36

17,3%

93,0%

Group Dental Care

0,49

0,55

0,55

0,62

0,71

12,9%

45,0%

Ins. companies specializing in healthcare

9,97

11,85

17,86

23,90

28,21

18,0%

182,9%

68,90

79,97

91,52

106,97

121,50

13,6%

76,3%

2015/2014

2015/2011

Supplementary Health Market Source:

DIOPS (ANS) - Data extracted on 05/05/2016

Combined Index composition of companies affiliated with FenaSaúde In % to revenue Healthcare Companies

2011

2012

2013

2014

2015

Loss ratio

81,4

83,0

83,4

84,6

84,5

(0,10)

3,06

Administrative expenditure

10,3

9,9

8,8

8,4

7,9

(0,50)

(2,38)

Business expenditure

4,6

4,7

4,9

5,0

5,4

0,32

0,79

Taxes

0,4

0,4

0,5

0,6

0,8

0,13

0,34

96,3

97,6

97,1

98,0

97,7

(0,27)

1,47

Combined Index Source:

DIOPS (ANS) - Data extracted on 05/05/2016

Brazilian Insurance Market | Results and Prospects

Statistics

60 Summary


FenaSaúde

Loss Ratio | Beneficiaries per Modality Supplementary Health Loss Ratio per type of operator In % to revenue 2011

2012

2013

2014

2015

Self-management

92,1%

94,7%

92,8%

93,2%

95,8%

2,59

3,64

Physician Cooperative

81,0%

81,8%

82,2%

82,6%

82,5%

(0,17)

1,49

Dental Cooperative

63,7%

63,5%

59,3%

58,2%

60,8%

2,61

(2,91)

Philantropic entities

81,0%

82,7%

82,6%

80,8%

77,1%

(3,68)

(3,92)

Group Medical Care

78,0%

79,9%

81,2%

81,4%

79,1%

(2,27)

1,08

Group Dental Care

42,5%

42,5%

39,9%

40,3%

42,2%

1,87

(0,33)

Ins. Companies Specializing in Healthcare

82,3%

83,8%

84,8%

85,7%

87,4%

1,74

5,09

80,8%

82,3%

82,8%

83,3%

83,3%

0,01

2,48

Supplementary Health Source:

2015/2014

2015/2011

DIOPS (ANS) - Data extracted on 05/05/2016

Beneficiaries of Supplementary Health per type of operator In thousands and % change 2011

2012

2013

2014

2015

5,07

5,20

5,11

5,27

5,18

-1,6%

2,2%

17,52

18,24

19,00

19,70

19,28

-2,2%

10,0%

Dental Cooperative

2,74

2,83

3,09

3,13

3,13

0,0%

14,4%

Philantropic entities

1,53

1,51

1,49

1,19

1,18

-1,1%

-23,1%

Group Medical Care

18,58

19,59

20,67

20,89

21,14

1,2%

13,7%

Group Dental Care

11,18

12,30

12,52

13,11

13,69

4,4%

22,4%

6,32

7,02

7,64

8,22

7,81

-5,0%

23,5%

62,94

66,69

69,53

71,51

71,40

-0,1%

13,4%

Self-management Physician Cooperative

Ins. Companies Specializing in Healthcare Supplementary Health Source:

BNET (ANS) - Data extracted on 17/05/2016

Brazilian Insurance Market | Results and Prospects

Note:

% change 2015/2014

% change 2015/2011

1) The modality “Benefits Manager” was not addressed by the report since its figures were not significant. 2) The term “beneficiary” refers to the individual who is eligible to receive one or more benefits of a healthcare plan.

Statistics

61 Summary


FenaSaĂşde

Beneficiaries per Region Beneficiaries per region and type of operator In thousands and % change

North

2011

2012

2013

2014

2015

% change 2015/2014

% change 2015/2011

Self-management

0,25

0,26

0,26

0,30

0,27

-9,1%

9,4%

Physician Cooperative

0,87

0,91

0,89

0,92

0,90

-2,3%

3,7%

Dental Cooperative

0,25

0,25

0,25

0,26

0,25

-2,8%

3,4%

Philantropic entities

0,04

0,04

0,04

0,04

0,03

-22,7%

-17,8%

Group Medical Care

0,38

0,48

0,58

0,64

0,72

12,3%

88,1%

Group Dental Care

0,35

0,42

0,46

0,48

0,53

9,6%

49,3%

Ins. Companies Specializing in Healthcare

0,21

0,24

0,25

0,28

0,22

-21,6%

5,0%

2,34

2,59

2,74

2,91

2,91

0,0%

24,8%

Self-management

0,91

0,93

0,92

0,95

0,93

-2,0%

2,3%

Physician Cooperative

1,91

2,00

2,03

2,23

2,23

-0,1%

16,5%

Dental Cooperative

0,33

0,34

0,36

0,35

0,36

2,2%

7,9%

Philantropic entities

0,02

0,02

0,02

0,02

0,02

4,9%

0,9%

Group Medical Care

2,77

3,16

3,34

3,61

3,75

3,7%

35,4%

Group Dental Care

2,30

2,53

2,70

2,64

2,72

3,3%

18,4%

Ins. Companies Specializing in Healthcare

0,77

0,94

1,01

1,04

0,99

-4,1%

29,4%

9,02

9,92

10,38

10,84

11,01

1,5%

22,1%

Self-management

0,55

0,57

0,55

0,62

0,64

3,6%

15,5%

Physician Cooperative

1,18

1,30

1,37

1,47

1,53

4,1%

29,1%

Dental Cooperative

0,22

0,21

0,25

0,27

0,27

2,5%

24,6%

Philantropic entities

0,00

0,00

0,00

0,00

0,00

-6,1%

-54,0%

Group Medical Care

0,53

0,64

0,70

0,73

0,74

1,5%

39,8%

Group Dental Care

0,97

1,05

1,09

1,13

1,20

5,9%

23,4%

Ins. Companies Specializing in Healthcare

0,25

0,29

0,39

0,44

0,41

-6,2%

65,6%

3,70

4,06

4,35

4,64

4,78

3,0%

29,2%

Total number of Beneficiaries in the Northern Region

Northeast

Total number of Beneficiaries in the Northeastern Region

Midwest

Total number of Beneficiaries in the Midwestern Region

Brazilian Insurance Market | Results and Prospects

Statistics

62 Summary


FenaSaúde

Distribution of Beneficiaries Continuação

Beneficiaries per region and type of operator In thousands and % change

Southeast

2013

2014

2015

Self-management

2,48

2,58

2,56

2,54

2,49

-1,8%

0,4%

Physician Cooperative

9,84

10,29

10,75

11,01

10,46

-5,1%

6,3%

Dental Cooperative

1,28

1,28

1,33

1,38

1,40

1,6%

9,4%

Philantropic entities

1,22

1,19

1,17

0,91

0,90

-1,5%

-26,6%

Group Medical Care

13,32

13,70

14,35

14,16

14,22

0,4%

6,7%

Group Dental Care

6,69

7,36

7,29

7,81

8,13

4,0%

21,5%

Ins. Companies Specializing in Healthcare

4,70

5,13

5,55

6,01

5,76

-4,1%

22,7%

39,53

41,54

43,00

43,82

43,35

-1,1%

9,7%

Self-management

0,87

0,85

0,80

0,86

0,85

-2,0%

-2,4%

Physician Cooperative

3,71

3,75

3,96

4,07

4,16

2,3%

12,1%

Dental Cooperative

0,66

0,75

0,89

0,86

0,83

-3,4%

25,8%

Philantropic entities

0,25

0,26

0,26

0,22

0,23

4,2%

-8,1%

Group Medical Care

1,58

1,61

1,70

1,74

1,71

-2,0%

8,2%

Group Dental Care

0,87

0,94

0,98

1,04

1,08

3,9%

25,1%

Ins. Companies Specializing in Healthcare

0,40

0,41

0,45

0,46

0,42

-8,5%

5,2%

8,34

8,56

9,04

9,26

9,29

0,3%

11,4%

62,94

66,69

69,53

71,51

71,40

-0,1%

13,4%

Total number of Beneficiaries in the Southern Region Brazil Source:

% change 2015/2011

2012

Total number of Beneficiaries in the Southeastern Region

South

% change 2015/2014

2011

TABNET (ANS) - Data extracted on 17/05/2016

Brazilian Insurance Market | Results and Prospects

Note:

1) Amounts not listed in specific geographic regions and overseas come under “Other” once they do not stand for significant figures. 2) The term “beneficiary” refers to the individual who is eligible to receive one or more benefits of a healthcare plan.

Statistics

63 Summary


FenaSaúde

Distribution of Beneficiaries Per region and % share

Source:

Southeast

Northeast

60,8%

15,4%

SIB (ANS) - Data extracted on 17/05/2016

Brazilian Insurance Market | Results and Prospects

South

13,0%

Note:

Midwest

6,7%

North

4,1%

1) Amounts not listed in specific geographic regions and overseas come under “Other” once they do not stand for significant figures. 2) The term “beneficiary” refers to the individual who is eligible to receive one or more benefits of a healthcare plan.

Statistics

64 Summary


FenaSaúde

Beneficiaries per Age Group Supplementary Health Beneficiaries per age group In thousands and % share Individual of Family 2011

2012

2013

2014

2015

% change 2015/2014

% change 2015/2011

0 - 19 years

3,39

3,55

3,63

3,64

3,63

-0,2%

7,2%

20 - 29 years

1,98

2,05

1,99

1,96

1,93

-1,5%

-2,4%

30 - 39 years

2,01

2,15

2,17

2,18

2,19

0,4%

9,1%

40 - 49 years

1,63

1,71

1,70

1,70

1,71

0,3%

4,7%

50 - 59 years

1,40

1,46

1,48

1,52

1,55

2,2%

10,7%

60 or + years

2,07

2,16

2,27

2,40

2,52

5,2%

22,1%

60 - 69 years

1,03

1,08

1,13

1,19

1,24

4,8%

20,5%

70 - 79 years

0,67

0,69

0,73

0,77

0,80

4,8%

20,5%

80 and over

0,37

0,39

0,41

0,45

0,48

7,1%

29,7%

12,48

13,08

13,25

13,41

13,54

1,0%

8,5%

Total number of Beneficiaries

Group 2011

2012

2013

2014

2015

% change 2015/2014

% change 2015/2011

0 - 19 years

12,40

13,14

13,74

14,06

13,73

-2,4%

10,7%

20 - 29 years

10,79

11,26

11,56

11,60

11,10

-4,3%

2,9%

30 - 39 years

10,89

11,96

12,84

13,44

13,58

1,1%

24,7%

40 - 49 years

7,54

8,00

8,38

8,73

8,82

1,0%

17,0%

50 - 59 years

4,90

5,18

5,49

5,78

5,93

2,5%

20,8%

60 or + years

3,93

4,06

4,27

4,49

4,70

4,6%

19,5%

60 - 69 years

2,24

2,35

2,51

2,68

2,82

5,3%

26,2%

70 - 79 years

1,11

1,11

1,14

1,18

1,21

2,9%

9,3%

80 and over

0,59

0,60

0,62

0,63

0,67

4,9%

13,3%

50,46

53,61

56,28

58,10

57,86

-0,4%

14,7%

Total number of Beneficiaries Source:

TABNET (ANS) - Data extracted on 17/05/2016

Brazilian Insurance Market | Results and Prospects

Note:

1) 2) 3) 4)

The The The The

“Group” Plan comprises the beneficiaries of corporate group plans, per subscription and not identified. term “beneficiary” refers to the individual who is eligible to receive one or more benefits of a healthcare plan. “Total” line refers to those beneficiaries defined as having “inconsistent age.” amounts listed without any type of contracting conditions have not been considered.

Statistics

65 Summary


FenaSaúde

Beneficiaries‘ Age Pyramid per Type of Plan

80 or over

70 – 79 years

60 – 69 years

50 – 59 years

40 – 49 years

30 – 39 years

20 – 29 years

0 – 19 years

30% 20% 10% 0 10% 20% 30%

Individual of Family

Source:

SIB (ANS) - Data extracted on 17/05/2016.

Brazilian Insurance Market | Results and Prospects

Note:

1) 2) 3) 4)

The The The The

Groups

“Group” Plan comprises the beneficiaries of corporate group plans, per subscription and not identified. term “beneficiary” refers to the individual who is eligible to receive one or more benefits of a healthcare plan. “Total” line refers to those beneficiaries defined as having “inconsistent age.” amounts listed without any type of contracting conditions have not been considered.

Statistics

66 Summary


FenaCap

Revenue, GDP and Inflation Revenue, Sector´s share to GDP, Net equity, Provisions for Bond scheme - Norminal and Real In BRL$ billlion, % of change and % penetration to GDP 2011 Revenue

2012

2013

2014

2015

% change 2015/2014 Nominal

Real

Variação 2015/2011

14,10

16,59

20,97

21,87

21,51

-1,7%

-11,1%

52,5%

Net Equity

6,32

6,28

5,05

4,01

3,30

-17,6%

-25,6%

-47,8%

Provisions

19,79

22,54

26,77

29,94

31,06

3,7%

-6,3%

57,0%

4.373,7

4.805,9

5.316,5

5.687,3

5.929,7

4,3%

-5,8%

35,6%

Sector´s share to GDP

0,32%

0,35%

0,39%

0,38%

0,36%

-0,02 p.p.

--

0,04 p.p

Extended Consumer Price Index

6,50%

5,84%

5,91%

6,41%

10,67%

--

--

--

GDP

Sources: SES (SUSEP) - Data extracted on 07/03/2016 IBGE - Data extracted on 29/01/2015

Brazilian Insurance Market | Results and Prospects

Statistics

67 Summary


FenaCap

Revenue per Region Revenue from Premium Savings Bonds per Region In BRL$ million and % change 2011

2012

2013

2014

2015

451,10

552,66

716,93

728,73

751,05

3,1%

66,5%

Northeast

1.524,99

1.903,63

2.542,89

2.559,73

2.596,89

1,5%

70,3%

Midwest

1.005,16

1.195,46

1.596,60

1.775,73

1.714,88

-3,4%

70,6%

Southeast

8.055,81

9.401,27

11.702,32

12.472,51

12.564,86

0,7%

56,0%

South

3.042,75

3.538,12

4.414,31

4.335,10

3.883,11

-10,4%

27,6%

14.102,42

16.592,01

20.973,85

21.872,66

21.510,80

-1,7%

52,5%

North

Brazil Source: SES (SUSEP) - Data extracted on 07/03/2016

Source:

% change 2015/2014

% change 2015/2011

Note: Policies registred without the corresponding State indication or abroad have not been reassigned to any region but are considered part of “Brazil”.

Southeast

South

58,4%

18,1%

SES (SUSEP) - Data extracted on 07/03/2016

Brazilian Insurance Market | Results and Prospects

Northeast

12,1%

Midwest

8,0%

North

3,5%

Note: Policies that do not bear any datum in the “state” field or registered overseas were not reallocated to any specific geographical region, although they are comprised by “Brazil”.

Statistics

68 Summary


FenaCap

Drawings, Redemption and Expenses Bond drawing, redemption and expenditure In BRL$ million and % change 2011

2012

2013

2014

2015

% change 2015/2014

% change 2015/2011

9.135,6

10.611,2

13.082,4

15.182,8

17.358,6

14,3%

90,0%

727,6

842,4

1.021,6

1.149,4

1.062,7

-7,5%

46,1%

1.107,8

1.288,8

1.436,9

1.466,5

1.588,4

8,3%

43,4%

Administrative expenditure

570,3

582,1

701,8

782,0

807,9

3,3%

41,6%

Tax expenditure

127,8

140,5

144,6

178,3

193,7

8,6%

51,5%

Operating costs

248,3

244,6

276,1

280,2

295,1

5,3%

18,9%

Bond Scheme - Redeemed Bonds Bond scheme - Prizes drawn Trading expenses

Source: SES (SUSEP) - Data extracted on 07/03/2016

Brazilian Insurance Market | Results and Prospects

Statistics

69 Summary


Institution Representing the Insurance Market Mission to support and strengthen the sector

Summary


T

he National Confederation of General Insurance Companies, Private Pension and Life, Supplementary Health and Premium Bonds - CNseg is a civil association that is present across the country and brings together the Federations which represent the companies that are part of the segments of General Insurance, Complementary Open Private Pension and Life, Supplementary Health and Premium Bonds. Its mission is to promote the development of the insurance market to meet the needs of Brazilian citizens. To that end, CNseg supports and promotes institutional actions aiming at strengthening its associate companies, besides representing them before society and public authorities. CNseg is composed of a General Assembly, a Board of Directors, a Supervisory Board, a Works Council, an Ethics council and an Executive Board. Each area has its duties set forth in the Organization Manual.

Brazilian Capitalization Federation

Brazilian Open-ended Private Pension and Life Federation

Brazilian Private Healthcare Federation

Brazilian Capitalization Federation

Brazilian Capitalization Federation

Brazilian Open-ended Private Pension and Life Federation

Brazilian General Insurance Federation

Brazilian Open-ended Private Pension and Life Federation

Brazilian Private Healthcare Federation

Brazilian Capitalization Federation

Brazilian Insurance Market | Results and Prospects

In November 2015 a plane crash shortened the mandate of the CNseg´s CEO, Marco Antonio Rossi. Jayme Brasil Garfinkel took his place and was nominated to conclude the mandate of the board elected for three-year period of 2013/2016, after having his name approved by the assembly. The year of 2015 was rather dynamic, so much so that the members of the Administrative Board voted on 109 resolutions submitted for approval. Together, all the areas of CNseg sent 11.750 messages/mail to public agencies, insurance companies, Open Complementary Pension entities, and Premium Bonds companies, sharing their views on regulatory matters, disclosing news and events, and even giving information on the existence of insurance. The entity´s 15 Theme-based Commissions bring together approximately 470 market professionals, indicated Portal CNseg by the member Federations and by CNseg, who agree on a volunteer basis to exchange information and ideas Theme-based for a more efficient, nimble and efficient market. The Commissions Commissions promoted 140 meetings, the majority through videoconferences with CNseg´s headquarters in Rio de Janeiro, and with the Union of Insurance Companies in São Paulo. They are: Actuarial, Administration and Finances, Tax-related Matters, Legal Matters, Communications and Marketing, Internal Controls, Investments, Micro-insurance and Popular Insurance, Ombudsman´s Office, Processes and Information Technology, Human Resources, Consumer Relations, Reinsurance, Sustainability and Permanent Governmental Matters.

Brazilian Private Healthcare Federation

Brazilian General Insurance Federation

Brazilian General Insurance Federation

The Confederation started to take part in a forum of the following agencies: The National Private Insurance Council, the Ministry of the Environment, the Ministry of Labor and Employment, the Chamber of Commerce of Rio de Janeiro, the Brazilian Federation of Banks, FIDES, the Brazilian Association of Company-Customer Relations, the Municipal Olympic Company.

Brazilian Open-ended Private Pension and Life Federation

Brazilian Private Healthcare Federation

Brazilian General Insurance Federation

CNseg

73 Summary


Key actions

To allow for a more encompassing view, the pages that follow mention only some of the key actions and work done by CNseg in 2015:

the Ombudsman´s offices of companies. Sixty professionals were trained; consequently, the workforce became more skilled.

Consumer Protection: boosted communication with consumer

Collecting Data System in Ombudsman´s Offices - SCD Ouvidorias: this online tool was developed and implemented to be

protection agencies, especially with the National Secretariat for Consumer Protection - Senacon, and the Brazilian Association of Procons (Consumer protections bureaux). To this end, it promoted the First Conference for the Protection of insurance Consumers, a forum to promote honest and constructive conversation between the market and consumer protection agencies.

Commitment Letter to Brazilian Consumers from Ombudsmen in Insurances, Private Pension, Supplementary Health and Premium Bonds: which was written and made public during the 5th Conference for the Protection of Insurance Consumers and ratified the commitment to promote and to uphold values centered on harmony, trust and balance in the relationships between consumers and companies.

National Ombudsman Day: celebrated the date for the first time and promoted the second edition of the course of Training for Omdurman Analysts, focused on improving the skills of the professionals who work in

Brazilian Insurance Market | Results and Prospects

used for writing the Report on Ombudsmen´s Offices Activities; its job is to improve the diagnosis of policyholders’ demands and to identify aspects to be improved in the service rendered.

Consumers International World Congress: participated of the 20th edition of the event, which took place in Brasilia. It was the first that this event, put together by the organization - which brings together institutions that work for the defense and empowerment of consumers in 120 countries - took place in Brazil; this was done in honor of the 25th anniversary of the Brazilian Consumer Defense Code.

National Strategy for Financial Education - ENEF: CNseg remained among the sponsors of the ENEF as member of the National Committee for Financial Education - CONEF, and of the Permanent Commission. The insurance market carried out 96 actions, one of them being the sponsorship of the theater play “Suse, Perez, Natália the actuary

CNseg

74 Summary


and the Prize dream�, for 13 secondary schools to create awareness among the young of the importance of insurance as a mechanism of prevention and protection against losses and of complementary pension as a tool for financial planning throughout life.

improve the quality of sales made through the retail network in order to help answer questions and dispel doubts on the part of consumers, making for more enlightened purchase. The manual was sent to partner retail networks and the Procons to increase knowledge and understanding about how the market works.

Microinsurance: promoted the change of the name of the commission in order to align it with the international nomenclature - Commission of Inclusive Insurances, instead of Commission of Microinsurance and Popular Insurance; met with the board of Microinsurance Network - MIN to learn about the work done by the institution; and launched the draft synthesis of the Latin American Map of Microinsurance in the Brazilian market, an initiative that was co-sponsored by CNseg.

Manual of Best Practices for Insurance Salesmen in Retail Organizations: created the Manual in partnership with FenSeg, to

IBOPE survey: promoted a survey to evaluate the understanding on the part of consumers about Extended Warranty insurance. The research showed that 80% of the people interviewed said they knew about or had already heard about Extended Warranty, and were satisfied. However, according to the survey, there is still room for improvement, especially with regard to response time and sales procedures, with an increase in the information to be supplied.

United by Resilience statment: signed the Declaration made during the Third UN World Conference on Disaster Risk Reduction (WCDRR) held in Japan.

The Paris Manifesto: supported the Manifesto, written by the presidency of COP-21, showing the commitment of institutions with the climate agreement signed by the states at the end of the Climate Change Conference in Paris.

Guide to Integrate Environmental, Social and Governance Issues into the Insurance Market: published the Guide that allowed the Confederation to outline topics relevant for the segments of General Insurance, Private Pension and Life, Supplementary Health and Premium Bonds, which were later validated by the respective member Federations.

Infrastructure Opportunities in Brazil: organized a meeting at Lloyd’s of London between authorities of the Brazilian government and investors from European banks and insurance companies to show opportunities for

Brazilian Insurance Market | Results and Prospects

CNseg

75 Summary


investments in infrastructure in Brazil. Executives from the Brazilian insurance market were also present. An institutional folder from CNseg, containing information and excellent data on the sector was distributed at the time.

Legal Action: followed the procedures in 442 lawsuits. Of these, twelve had been direct actions of unconstitutionality - ADINs, one general repercussion suit, two special appeals, fifteen public civic actions, two class actions and four hundred and ten individual lawsuits on policy costs, National Claims Register - RNS, drivers’ register, health, Housing Mortgage Insurance from the National Housing System - SH/ SFH, car, taxes and life.

Lawsuits

442

15

Lawsuits

Public Civic Actions

12

Direct Actions of Inconstitutionality

410

Brazilian Insurance Market | Results and Prospects

Individual lawsuits

Resolution CNSP 243/11: proposed changes in the Resolution to correct ambiguities in the law that deals with administrative sanctions. The entity proved that holding natural people accountable for violating insurance, coinsurance, reinsurance, retrocession and premium bonds rules, regardless of the previous existence of indications of their guilt, was causing embarrassment and discomfort to company managers in the insurance market. This because, under the allegation that the fact would have taken place within their area of activity, natural persons were being penalized for performing their duties before Susep and for being unable to prove malice (willful misconduct) or culpability (negligence, recklessness, or ineptness). In an important step to eliminate uncertainty on how these matters ought to be interpreted, Act 13,195/15, CNSP Resolution 331/15 and Susep Normative Instruction 76/15 were enacted to make quite clear that the law does not compel Susep to first investigate the administrative responsibility of managers, as the previous writing could lead to believe. A fast-track procedure was also created to check the 56 behaviors of an objective nature defined in Resolution CNSP 331/15, in which only legal entities can be punished. The new rules bring greater legal security to all who work in the insurance market.

CNseg Professional Certification - CPC: created the certification program for the insurance market to recognize and improve the technical skills Hot site of the professionals of this sector, based on objective CPC evaluations of their knowledge, bringing them up to the level of mature markets that offer professional certification of different levels and for various activities in the Insurance sector, such as the Chartered Insurance Institute - CII in the United Kingdom, and The Institutes, in the United States. Two hundred and seventy-six people passed the first examination, which represents 20% of the 1,372 applicants who showed up for the test in Rio de Janeiro and SĂŁo Paulo.

CNseg

76 Summary


Market Promotion: participated in two work groups created by Susep –

Corporate Communication: adopted graphical and publishing

The WG Governmental Plan of Action for the Development of the Insurance Industry, which brings together other market stakeholders. This group wrote a report, delivered by Susep to the Ministry of Finance, covering actions to be implemented to boost growth, such as shielding collateral and distribution channels. In turn, the WG Special Advisory Commission for Insurance Markets, Premium Bonds, Reinsurance and Open Supplementary Pension wants to identify the factors that affect the nimbleness of the markets supervised by the autonomous governmental entity.

improvements made in the CNseg Internet Web Portal to add value and broaden the portal´s content, leading to a 20% increase in the number of viewings and 52% more users. Around 830 articles were published, 625,683 pages were viewed, and there were 174.4 thousand visitors. Promoted the publication of 34 articles disseminating its initiatives and topics of interest to the insurance market, such as the Insurance Magazine (Revista de Seguros), the Legal Magazine for Insurance (Revista Jurídica de Seguros), the CNseg in Action (CNseg em ação),the Annual Insurance Market report, the Social Responsibility and Sustainability Report and the corporate folder. Twentythree reports, statements and press releases written by global insurance entities of interest to the Brazilian market were translated.

Environment: signed, with the Ministry of the Environment, the Technical and Financial Cooperation Agreement for the implementation of a Rural Environmental Register. The aim of this agreement is to make feasible the drawing and supply of geo-referenced maps based on satellite pictures of municipalities located in the Cerrado (savanna eco-region) and Atlantic Rainforest biomes. The information gathered with this register will strongly contribute to the proper pricing and development of new insurance products.

“Instituto Ação pela Paz” (Action for Peace institute): became one of the founding partners of the non-profit civil association focused on projects and programs for the recovery and retrieval of the dignity of people who live in prison, former inmates and their family. One of the initiatives is the Semear Program, through which a number of logistic and coordinated actions are implemented to improve conditions for inmates while they serve their sentences by supplying concrete options to allow their re-entry into society, such as educational and labor-related activities in order to prevent relapse or new incarceration.

Brazilian Insurance Market | Results and Prospects

Some of the major publications by CNseg that address topics of interest to the market

CNseg

77 Summary


External Communication: boosted the presence of CNseg as a corporate representative of the insurance sector in the major communication vehicles of the country, in the media specializing in insurance and in specific publications in areas that are of interest to the insurance market. The progress of the so-called Quality Index of Exposure in the Media (IQEM) showed the success of a strategy that has also included relationship-building meetings with publishers and directors of the mass media, technical workshops for journalists, invitations made to journalists for market-related events, organization of press conferences, in addition to speeches and articles written and stances taken, and of the coordination and dissemination of the Antonio Carlos de Almeida Braga Award for Innovation in Insurance.

Hot site Award for Innovation in Insurance

The Antonio Carlos de Almeida Braga Award for innovation in Insurance: had its fifth edition, and gave awards to nine participants in three categories - Products and Services, Processes and Communications. This year, of the 56 projects entered, 52 qualified to compete for the award.

Diversity of discussion themes attracts a crowd to the auditoriums throughout the three days of the event

The 7th CONSEGURO Conference: carried out - among 115 other events that mobilized nearly 18 thousand people, a new biennial edition of the Brazilian Conference on Insurance, Reinsurance, Private Pension and Premium Bonds - CONSEGURO that, for the first time, included five other traditional events of the insurance market, increasing the number of participants to almost a thousand.

Portal CNseg Events

“Onda Carioca”NGO: gave continuity to the partnership with the NGO, reusing material used in the events, such as identification badges and canvas. The 2453 kilos of canvas were transformed into 2500 corporate gifts (tote bags and toiletries bags) that were distributed at several market events.

“Valorizar” Program: implemented and carried out, experimentally, the Professional Value Enhancement Program, created to recognize and The top three ranking for each category of the Award granted at Copacabana Palace Hotel

Brazilian Insurance Market | Results and Prospects

CNseg

78 Summary


to value employees who have a positive performance and add value to the company´s revenue; to consolidate career goals, allowing employees to plan ahead and develop while keeping their focus on their goals; to develop close professional bonds in the relationship between manager and employees; and to install and manage an environment conducive to the development of business.

evaluation criterion based on the net value of credit and liabilities linked to the operation.

Revenue recognition: Susep accepted CNseg´s request to talk over the model used to characterize the triggering event of revenue in risk operations and accrual, proposed by the regulating agency, in 2014, considering that this did not contemplate all the accrual products.

“TVElevador” (Lift TV communication): created the new communication channel for the Insurance Companies’ Building in partnership with the Brazilian National Insurance School and the insurance company, Seguradora Líder DPVAT, launched in November. In addition to news from the Insurance market, information is also displayed about events, the economy, the traffic and the cultural agenda, among other topics. The coordination of this means of communication is CNseg´s responsibility.

“Se liga”campaign (“Get wired”campaign): continued to promote the campaign which is part of the National Traffic Assistance Program - PNAT, a permanent project of CNseg´s. In partnership with state-level traffic agency, Detran, educational flyers and of stickers with the safe-driver “check-list” were distributed across the states.

“Movimento Paulista de Segurança de Trânsito – Vida” (São Paulo Traffic Safety Movement). “Dê preferência” (Give Way movement): continued to support the governmental program of State of São Paulo, whose main goal is to reduce by half the number deaths due to traffic accidents in the State by 2020. The actions are focused on traffic education, safety in roads and vehicle security, as well management of response to accidents.

Impairment Register for credit operations: consulted Susep on disagreements over the register, since the market adopted the

Brazilian Insurance Market | Results and Prospects

Assumption of Risk by the insurance representative: Susep accepted the new issuance term for insurance sold through retail networks.

Deferrable Acquisition Costs - DAC: the suggestion was sent to Susep to treat deferred compensation due to senior management in the same way deferred brokerage costs are treated, considering them as a risk-reducing asset in the need for coverage. The agency was amenable to pursue the discussion.

Chart of accounts: a study was sent to Susep for analysis on modifications to be made to the plan. The possibility of implementing it or using it as a basis for the changes that will come with the coming into force of phase II of the IFRS4, forecast for 2018 is being contemplated.

Periodic Information Form - FIP: the formulation of a governance model was proposed to Susep dealing with changes in the personnel. There has been no formal answer yet about the suggestion.

Susep Circular 509/15: a suggestion was sent to Susep for the registration, custody and transaction of assets, and marketable securities guaranteeing technical reserves should be entered at their book value for purposes of coverage. However, Susep Circular 509/15, which regulates the matter, stated that these should be entered at their market value.

CNseg

79 Summary


Adjusted Net Shareholders’ Equity - PLA: a discussion was held with the autonomous government agency on criteria that could make the PLA more sensitive to the variations in interest rates.

Optional Third Party Motor Insurance - RCF-V: studies were sent to Susep on the consequences of the sales of coverage for Optional Third Party Motor Insurance - RCF-V, separated from the coverage for Personal Automobile Own Damage, signaling the need to review the rules in effect. The agency did not answer back.

Database for the calculation of Market Risk: the impact on companies that implement an out-of-step Liability Adequacy Test was discussed with Susep. When the data was sent for calculation of Market Risk, CNseg´s proposal to change the deadline for submission was accepted.

Inter-American Federation of Insurance Companies - Fides: created and coordinated a Solvency Workgroup to share experiences on solvency systems of the countries represented by the Federation and the processes of adjustment to Riskbased Capital. It also participated in the visual and content upgrade of the Federation Web site and published FIDES Report 2014-2015, covering the period during which the entity was under the management of Marco Antonio Rossi.

Hot site FIDES

Social Contribution on Net profits - CSLL: a request was made to the Federal Revenue Service to publish rules that will regulate proportionality in the application of the increased CSLL rate.

Internal Controls: a study was made on the impacts of the so-called Compliance Costs for the insurance market, showing the weight of expenditures to keep up daily operations in companies.

Internal Audit x External Audit: Susep was warned about overlapping audits (Internal and External) in legal frameworks, and a request was consequently made for the review of Circulars 249/2004, 280/2004 and Resolution CNSP 118/2004.

Investments: proposals were made for an environment favorable to investments in infrastructure by insurance companies, and a proposal was made to amend Resolution CMN 3308/2005, in addition to the assessment of the impact of Resolutions CMN 4,402/15 and 4,444/15.

Brazilian Insurance Market | Results and Prospects

As Marco Antonio Rossi’s term at FIDES ends, he addresses audience in Chile about the past, the present and the future of the industry

CNseg

80 Summary


Solutions The solutions supplied by CNseg, through its Service Center and Insurance Protection - CESER, to companies in the insurance market contribute to a better policy of risk underwriting, pricing, regulation and payment of indemnities, as well as compliance with the requirements of regulating agencies and the prevention and combat of fraud. Please see below the list of available solutions:

Solutions that use databases from the insurance market (data sharing)

Database of Vehicles Insured with Unrecoverable Full Indemnity Claims | BDSII: Supplies information about accident-

system) and made available by the Federation to affiliated companies . Source: Premium Bonds Companies.

damaged vehicles which are the object of an unrecoverable full indemnity. This database is also available for public consultation through the Federal District Detran Web site and security agencies. Source: Insurance companies.

Car Bonus Center | CB-Auto: Makes it possible for insurance companies to check among themselves the bonus class of their customers. Source: Insurance companies.

Premium Bonds: Data Collection System | SCD - Makes it possible for Premium Bonds companies to monthly send FenaCap their operational and financial data, which is then consolidated in the Dataseg (statistics

Brazilian Insurance Market | Results and Prospects

Verification of Car Insurance Policies: “Pátio Legal” (Legal Yard) | SCA PL - Allows access, through the company operating Pátio legal,

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to the database of holders of car insurance policies for purposes of information to the insurance company on the recovery of an insured vehicle. Source: Insurance companies.

“Fronteiras” Project (Borders project) | Sinivem: makes it

Car Insurance Policy Verification- Compensation | SCA Auto: Allows the insurer for purposes of loss compensation to identify

possible to identify vehicles passing through ten sites, showing in real time to the Federal Road Police if the vehicles are in an irregular situation, if they were stolen or should be monitored for any other reasons. It is used by over 95 thousand public security officers, benefiting the whole of society. Source: Insurance companies.

the counterpart that owns the third party car insurance policy. Source: Insurance companies.

National Register of Proposals and Policies | RNPA: Allows

Management of Car Loss Compensation | GR Auto: Developed through the evolution of SCA-Auto, the system allows, in addition to the identification of the counterpart, the automation and control of the loss compensation process for the car between the insurance companies involved. Source: Insurance companies.

DPVAT | Paid Insurance Certificates: Consultation of

the database of paid insurance certificates for the Compulsory Vehicle Liability Insurance -DPVAT, which makes available information about paid certificates (per VIN and plate) and the owner (per name and individual/corporate Taxpayer Number). Source: Seguradora Líder.

DPVAT | Claims settled: Consultation of the database on losses compensated by the compulsory vehicle liability insurance. Source: Seguradora Líder.

proposals and policies of the several lines of business in the insurance market to be registered, making it possible to see if there is risk accrual and indications of fraud in analyses of risk underwriting and regulation of losses by insurers. Source: Insurance companies.

National Claims Register | RNS: Makes it possible to affiliated insurance companies to share claim data between themselves, notifying them when there are coincidences between claims and assisting in the evaluation of the insured risk and in the prevention of fraud in insurances. Source: Insurance companies. Available for the following segments: RNS Credit and Surety Bonds; Agricultural RNS; RNS Transports; RNS Property Risks; RNS People; RNS Car.

Data Collection on Human Resources Indicators | SCDRH: A tool that makes it possible to electronically collect data and write periodic reports on data to be used for compiling market HR statistical panels . Source: Companies affiliated with the Federations.

Market Statistics | Dataseg: Supplies statistical data pertaining to the market of Insurance, Private Pension, Supplementary Health and Premium Bonds by means of a business intelligence tool - BI, that allows CNseg and the Federations to develop studies, surveys, and write reports on the sector´s financial and quantitative data. Source: Susep, ANS and companies affiliated with the Federations.

Brazilian Insurance Market | Results and Prospects

Management Data Assignment | PCDG: A system for compiling management statistics on the insurance market, of interest to Brazilian society, to add value to the affiliated companies through the writing of reports in which comparisons with the market are made. Also provides regular reviews on the quality of the information. Source: Susep, ANS and companies affiliated with the Federations.

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Statistics Portal: The portal supplies consolidated statistics on

Ombudsman Offices - Data Collection System | SCD: A tool

the market of Insurance, Private Pension, Supplementary Health and Premium Bonds based on a business intelligence tool that allows affiliated companies to use the data obtained to write the Interactive Report, the Statistics Report and the Income Projections. Source: Susep, ANS and companies affiliated with the Federations.

that makes it possible to electronically collect data and write periodic reports on the demands of customers received by the ombudsman´s offices of the companies which are part of CNseg´s Ombudsman Commission.

Solutions based on sources outside the insurance market Database of Blocked Telemarketing Calls | SIBLOQ: Makes

National Manufacturing Index Database | BIN Fabril: Makes

available, in a unified and standardized way, the telephone numbers of consumers who do not wish to be bothered by telemarketing calls. The source of the data is the request registered by the citizen´s themselves with the State and Municipal Procons -- Consumer protection agencies-where the “Do not Disturb Act” is in force. Source: Procons.

it possible to get technical and manufacturing features of domestic or imported vehicles, with updated information from public agencies. Source: Denatran.

National Sate Index Database | BIN Estadual: Makes it possible

on police reports of theft and robbery. The database update takes place daily at the end of the day. Source: Denatran.

to get technical data on vehicles in the State where they are registered. Along with all the information, all the data of the BIN Manufacturer, plate, fines and default on payment of IPVA tax/DPVAT certificate are also to be found. Source: Detran agencies.

Vehicles Database | BDV: Makes available information on vehicle

National Index of Robbery and Theft Database | BIN RF:

manufacturing features. The update of the database is done daily at the end of the day. Source: Denatran.

Makes available information on robberies and theft of vehicles: all Police Reports on Robbery/Theft, the location alerts, recovery and return to the owner with updated information from public agencies. Source: Denatran.

Stolen Vehicles Database | BDRF: Makes available information

Brazilian Insurance Market | Results and Prospects

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National Death Record Database | SINOB: Makes available information on deaths records sent by Notary’s offices of Civil Registries across Brazil. Source: Dataprev.

for purposes of statistics, identification of the cause of accidents and combat of fraud. Source: PMERJ.

Prevention of Money laundering | SIPLAV: Aims at providing Support Services Suppliers Register | CPSA: Allows suppliers of support services to the insurance market to register and keep their information up to date for purposes of consultation by the market. Source: direct register of suppliers.

Data Confirmation | SICON: Allows the individual or corporate taxpayer number to be validated; checks the registry status and obtains more information on natural and legal persons. Source: Federal revenue Service.

information for compliance with Susep Circular 445/12, which provides for the use of specific internal controls to prevent and fight crimes of money laundering or concealment of assets, rights and valuables. It also follows up operations carried out, and proposals of operations with politically exposed persons. This solution has currently two modules: Financial Register data and Information on Politically Exposed Persons. Source: Boavista Serviços. Reformulated under the guidance of the CNseg´s Internal Controls Commission and relaunched in 2013.

BAJ - Lawsuit database – SNH-National Housing System: Licensing database: Database of vehicles made available by Cetip, with information on the manufacturing features of vehicles and licensing. Source: CETIP.

Encumbrances | SNG: Database made available by Cetip, which controls vehicles pledged as collateral to the bank, until the register is canceled by the financial agent who first included it in the system. Source: CETIP.

VIN Decoder | VIN Chassis: makes it possible to decode the VIN of a car, such as: translating the numbers, information from the FIPE Table, pictures of the VIN and whether the vehicle is registered in the recall database. Source: CESVI.

E-BRAT Queries - Electronic Victimless Traffic Accident Report: Allows insurance companies to have access to information regarding traffic accidents without victims in the State of Rio de Janeiro

Brazilian Insurance Market | Results and Prospects

A system managed by the Federal savings bank (Caixa Econômica Federal) in its position as Administrator of the FCVS, the Wage Variation Compensation Fund, that contains information on all legal actions involving the SFH Housing Mortgage Insurance, and can serve several purposes, among which are: (i) the identification of potential financial losses for the FCVS (Ministry of Finance) in the lawsuits pending in the legal system and in which the coverage of the extinct Insurance Policy of the SFH (National Housing System) is being discussed, information to the lawyers of insurance companies that make it possible to identify aspects for the defense, including the detection of lis pendens. Source: Caixa Econômica Federal (Federal government Savings Bank).

Motor Vehicle Legal Status Identification System | IRV: Through an agreement with the Public Security Secretariat of the State of Pernambuco, the system allows the monitoring of vehicles and mobile equipment for purposes of identification of irregular vehicles by police authorities. Source: Intelligência XXI.

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Employment Bond Verification System | SIVVE Online:

SMS/E-mail sending System: A system that sends text messages

Checks the employment bond between companies and their employees through the Ministry of Labor’s General Registry on Employment and Unemployment - CAGED and the Annual Report on Social Information - RAIS. Source: Ministry of Labor and Employment

and emails, and can be directly triggered by the insurance companies´ system. It is used by FenaPrevi´s Electronic Document Exchange System - SIDE, to send customers official notices on their Request for Portability - CPP. Source: companies affiliated with FenaPrevi that work in the Private Pension segment.

SIVVE Business intelligence System| SIVVE In: The Employment Bond Verification System - Business Intelligence system has access to CAGED and RAIS databases (Ministry of Labor and Employment) and other public sources, thereby making available information on companies, people, employment relationships and corporate structure, among other things to enable analyses that will maximize results along several points of the value chain in the insurance market.

Issuance of Certificates | SEC: A system that issues certificates available in CNseg and the Federations.

Prevention and fight against Fraud Fraud Quantification System | SQF: This is CNseg´s

Report SQF

institutional tool for the collection and compilation of data needed to build indicators for the quantification of fraud. Through this system, fed since 2004 by Insurance companies

Brazilian Insurance Market | Results and Prospects

from all lines of insurance (except Supplementary Health and Open Complementary Private pension) insurance fraud indicators are annually generated, and a previously unseen historical series of these occurrences is being created.

Confidential Documents System | SDC: A channel used by CNseg to adequately receive and deal with denunciations received though Disque-Denúncia, the whistle-blowing line.

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Organizational structure

Shareholders’ meeting Ultimate governing body in CNseg´s hierarchical structure, composed by the CEOs of the four affiliated Federations and headed by the CEO of CNseg. Board of Director Marco Antonio Rossi

CNseg – Confederação Nacional das Empresas de Seguros Gerais, Previdência Privada e Vida, Saúde Suplementar e Capitalização (up to 10/11/2015)

Jayme Brasil Garfinkel

CNseg – Confederação Nacional das Empresas de Seguros Gerais, Previdência Privada e Vida, Saúde Suplementar e Capitalização

Paulo Miguel Marraccini

FenSeg – Federação Nacional de Seguros Gerais

Marcio Serôa de Araujo Coriolano

FenaSaúde – Federação Nacional de Saúde Suplementar

Osvaldo do Nascimento

FenaPrevi – Federação Nacional de Previdência Privada e Vida

Marco Antônio da Silva Barros

FenaCap – Federação Nacional de Capitalização

Brazilian Insurance Market | Results and Prospects

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Board of Directors A governing body composed of up to 28 members, who answer for the general direction and management of CNseg in compliance with guidelines set by the General Shareholders’ Meeting. Board of Director - President Marco Antonio Rossi

Bradesco Seguros S/A (up to 10/11/2015)

Jayme Brasil Garfinkel

Porto Seguro Cia. de Seguros Gerais (as of 11/11/2015)

Board of Directors - First Vice-president Jayme Brasil Garfinkel

Porto Seguro Cia. de Seguros Gerais (up to 10/11/2015)

Patrick Antônio Claude de Larragoiti Lucas

Sul América Companhia Nacional de Seguros (of 11/11/2015)

Board of Directors - Vice-presidents Mário José Gonzaga Petrelli

Icatu Seguros S/A (up to 10/11/2015)

Patrick Antônio Claude de Larragoiti Lucas

Sul América Companhia Nacional de Seguros

Board of Directors - Ex-officio Vice-presidents Paulo Miguel Marraccini

Federação Nacional de Seguros Gerais

Marcio Serôa de Araujo Coriolano

Federação Nacional de Saúde Suplementar

Osvaldo do Nascimento

Federação Nacional de Previdência Privada e Vida

Marco Antônio da Silva Barros

Federação Nacional de Capitalização

Acacio Rosa de Queiroz Filho

Chubb do Brasil Cia. de Seguros

Alexandre Corrêa Abreu

Brasilprev Seguros e Previdência (up to 25/02/2015)

Alexandre Malucelli

J. Malucelli Seguradora de Crédito S/A

Alfredo Lalia Neto

HSBC Vida e Previdência S/A

Edson Luís Franco

Zurich Seguros S/A

Francisco Alves de Souza

COMPREV Vida e Previdência S/A

João Francisco Silveira Borges da Costa

HDI Seguros S/A

Jorge Hilário Gouvêa Vieira

Sul América Companhia Nacional de Seguros

Luiz Eduardo Loureiro Veloso

Itaú Seguros S/A (as of 21/05/2015)

Brazilian Insurance Market | Results and Prospects

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Continuação

Board of Directors - Ex-officio Vice-presidents Marcelo Augusto Dutra Labuto

Brasilprev Seguros e Previdência (as of 21/05/2015)

Nilton Molina

Mongeral AEGON Seguros e Previdência S/A

Pedro Cláudio de Medeiros Bocauyva Bulcão

Sinaf Previdencial Cia. de Seguros

Pedro Pereira de Freitas

American Life Companhia de Seguros S/A

Thierry Marc Claude Claudon

Caixa Seguradora S/A

William Allan Yates

Prudential do Brasil Seguros de Vida S/A

Wilson Toneto

Mapfre Seguros S/A

Board of Directors - Ex-officio Director Luiz Tavares Pereira Filho

Fenaseg

Supervisory Board A body that monitors and supervises CNseg´s financial and accounting management and is composed of three full members and up to three alternate members elected by the Shareholders´General meeting. Supervisory Board - Full Members Haydewaldo Roberto Chamberlain da Costa

Bradesco Seguros S/A

José Maria Souza Teixeira Costa

Companhia de Seguros Aliança da Bahia S/A

Júlio Cesar Rosa

HDI Seguros S/A

Supervisory Board - Alternate Members Laênio Pereira dos Santos

Sul América Seguros de Pessoas e Previdência S/A

Lúcio Antonio Marques

Nobre Seguradora do Brasil S/A

Brazilian Insurance Market | Results and Prospects

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Works Council A strategic advisory body composed of up to 35 members, who may, or may not, be part of the segments represented and are indicated by the Board of Directors to assist in the achievement of goals and prerogatives of CNseg. Works council - Ex-officio Members

Works council - Leading specialists

Marco Antonio Rossi

President of the Confederation

Alberto Oswaldo Continentino de Araújo

CNseg

Jayme Brasil Garfinkel

1st Vice-president of the Confederation

Eduardo Baptista Vianna

CNseg

Paulo Miguel Marraccini

President of FenSeg

João Elisio Ferraz de Campos

Centauro Vida e Previdência S/A

Osvaldo Nascimento

President of FenaPrevi

Jorge Hilário Gouvêa Vieira

CNseg

Marcio Serôa de Araujo Coriolano

President of FenaSaúde

José Américo Peón de Sá

CESCEBRASIL Seguros de Crédito S/A

Marco Antônio da Silva Barros

President of FenaCap

Works council - Indicated by the Board of Directors

Works council - Unions affiliated with Fenaseg

Acácio Rosa de Queiroz Filho

Chubb do Brasil Cia. de Seguros

SindSeg MG, GO, TM and DF

Augusto Frederico Costa Rosa de Matos

Carlos dos Santos

Alfa Seguradora S/A

SindSeg PR and MS

João Gilberto Possiede

Mário José Gonzaga Petrelli

Icatu Seguros S/A

SindSeg BA, SE and TO

João Giuseppe Silveira Leite Esmeraldo

Nilton Molina

Mongeral AEGON Seguros e Previdência S/A

SindSeg RS

Júlio César Rosa

Patrick Antônio Claude de Larragoiti Lucas

Sul América Companhia Nacional de Seguros

SindSeg SP

Mauro César Batista

Pedro Pereira de Freitas

American Life Companhia de Seguros

SindSeg NNe

Múcio Novaes de Albuquerque Cavalcanti

Pedro Purm Junior

Argos Seguros Brasil S/A

SindSeg SC

Paulo Lückmann

Thierry Marc Claude Claudon

Caixa Seguradora S/A

SindSeg RJ and ES

Roberto de Souza Santos

Francisco Caiuby Vidigal Filho

Yasuda Marítima Seguros S/A

Sinapp

Francisco Alves de Souza

Brazilian Insurance Market | Results and Prospects

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Ethics Council An advisory body, composed of 11 members, responsible for overseeing the correct interpretation and compliance with the Code of Ethics rules for the Market of Insurance, Complementary Private Pension, Supplementary Health and Premium Bonds. In 2015, the composition of the Ethics Council was changed so that two vacancies for council members were filled by leading specialists of renowned expertise with no employment relationship with the insurance companies.

Ethics council - President Carlos André Guerra Barreiros

Seguradora Líder dos Consórcios do Seguro DPVAT

Ethics council - Vice-President Celso Luiz Dobarrio de Paiva

Alfa Seguradora S/A

Ethics council - Council members Bento Aparicio Zanzini (mandato renovado)

Mapfre Vida S/A

Carlos Infante Santos de Castro (mandato renovado)

Sul América Capitalização S/A

Luiz Tavares Pereira Filho (mandato renovado)

Fenaseg

Marco Antonio Gonçalves (mandato renovado)

Bradesco Auto/Re Companhia de Seguros

Max Joaquin Ernesto Thiermann Weller (até 30/06/2015)

Allianz Seguros S/A

Nilton Molina

Mongeral AEGON Seguros e Previdência S/A

Pedro Purm Junior (mandato renovado)

Argos Seguros Brasil S/A

Sidney Gonçalves Munhoz (até 30/06/2015)

Chubb do Brasil Cia. de Seguros

Pedro Cláudio de Medeiros B. Bulcão

Sinaf Previdencial Cia. de Seguros

Ethics Council – Leading Specialists with Renowned Expertise José Américo Peon de Sá

Actuary

Julio Bierrenbach

Lawyer and former insurer

Brazilian Insurance Market | Results and Prospects

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Member Federations CNseg is composed of four Federations that represent the companies that are part of the segments of General insurance, Private Pension and Life, Supplementary Health and Premium Bonds.

Summary


FenSeg The Brazilian General Insurance Federation centers its efforts on the development of activities specific to the lines of insurance in the segment known as “damage and loss insurance�.

Brazilian Insurance Market | Results and Prospects

Regarding the Federation

Companies affiliated

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A WORD FROM THE PRESIDENT/CEO

Results and Prospects Of all this, the Car insurance line achieved a revenue of BRL 32.5 billion, showing a slight 3.5% increase in comparison with 2014. Paulo Marraccini

T

he Brazilian General Insurance market registered premiums amounting to BRL 68.8 billion, a growth of 5.3% compared to the previous year. Of all this, the Car insurance line achieved a revenue of BRL 32.5 billion, showing a slight 3.5% increase in comparison with 2014. Such a performance was partly influenced by the economic situation of the country, especially due to the 35.6% decrease in sales of light-duty commercial vehicles and leisure cars in the quarterly comparison. Second most important group of insurance lines in the General Insurance market, Property Risk insurance - in which are included Large Risks, Engineering Risks, Extended Warranty and Retail portfolios – achieved a revenue of BRL12.7 billion, a small 3.8% increase in 2015. In terms of performance through the year, three segments have distinguished themselves by their growth, showing a significantly increase compared to the two previously mentioned insurance lines. They are: Rural Insurance, with a 13% increase in premiums; Housing Mortgage Insurance, with a 17.6% increase, and Credit Insurance and Surety Bond, with a 22.3% increase.

Brazilian Insurance Market | Results and Prospects

With regard to Rural Insurance, the product benefited from the priority given by the Federal Government to the financing of rural producers, an initiative reflected in the demand for coverage. On another front, despite the strong retraction in the amount of funding, the Housing Mortgage Insurance showed in its performance the influence of the adjustment for inflation in installments that follow the adjustments in wages. In turn, Credit insurance and Surety Bond were positively affected, benefiting from their inclusion among the modalities of surety bonds in tax foreclosure proceedings. For 2016, given the expectations that economic indicators will continue to point to an economic downturn, some insurance lines that make up the General Insurance market should keep on feeling the effects of credit crunch and decrease in people´s income. It is therefore crucial that insurance companies continue to look for opportunities so they can keep working in an innovative and creative way to help the country get back on the path of sustainable development.

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Continuous growth The segment of General Insurance issued in 2015 an amount of premiums of the order of BRL 68.8 billion, which was 5.3% more than what was made in 2014. Motor insurance still is the flag-ship, with BRL 32.5 billion in premiums, representing a 3.5% increase compared with the amount for the same period of the previous year, and a 47.3% participation in the sector´s total amount of premiums. The main highlight of 2015 was the Surety Bond portfolio with its 37.4% increase in comparison with the previous year, the amount of premiums having reached 1.7 billion against 1.2 billion. The increase of Rural Insurance, whose premiums reached BRL 3.3 billion, a 13% increase, was also significant when compared to 2014.

Premium highlights

Another highlight was the Housing Mortgage Insurance, which registered a 17.6% increase in 2015, with premiums reaching BRL 3.1 billion against BRL 2.6 billion the year before.

Increase compared to previous year.

Surety

BRL$1,7 billion

Housing

BRL$3,1 billion

Rural Car

BRL$3,3 billion BRL$32,5 billion

Others

For 2016, given the adjustments to be made in the economy, the market expects a continuous nominal increase of numbers of issued premiums, but in lower percentages. The change in legislation that allowed the inclusion of the Court Surety Bond in tax foreclosures will continue to determine the increase of the Surety Bond portfolio in 2016. The motor Insurance portfolio should present an increase similar to that of 2015.

37,4% 3,5% 13% 17,6%

It is worth noting that the Rural Insurance portfolio, depending on the allocation of resources for the subvention of rural producers’ premiums,

Brazilian Insurance Market | Results and Prospects

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should show good results since a grant-in-aid of BRL 741 million has been provisioned in 2016 for this kind of subsidy. With regard to indemnities paid during 2015, the total amount of which reached BRL 37.9 billion, representing an increase of 11.1% against the BRL 34.1 billion paid in 2014, it is worth noting that:

a. in the Motor line, indemnities represented 53.8% of this amount, reaching BRL 20.4 billion, an amount that shows a 3.8% increase over the BRL 19.7 billion paid in 2014; and

b. in the Transport line and in medium/large risks line, they reached BRL 1.9 and BRL 1.8 billion, a 3.9% and 2.5% decrease, respectively, when compared with indemnities paid in 2014.

Key institutional actions Motor Vehicles Dismantling Act: a cycle of lectures was promoted, in partnership with Fenacor and ENS, in the states of São Paulo, Rio de Janeiro, Paraná, Rio Grande do Sul, Pernambuco, Minas Gerais, Federal District, Mato Grosso, Espirito Santo and Bahia to show the importance and benefits of the laws.

Hearing on the Vehicle popular Insurance: participated of Susep´s public hearing to hear the market on the draft of the CNSP Resolution that regulates the popularly positioned car insurance, sending suggestions about the rule to be approved by the autonomous government agency.

Subvention for Rural insurance: followed up on the problems presented in this portfolio, bearing in mind the temporary tightening in the release of funds.

Extended Warranty: encouraged the immediate implementation of the recommendations of the regulations promoted by Susep for sales made by insurance representatives and participated in events,

Brazilian Insurance Market | Results and Prospects

side by side with consumer protection agencies, to ratify the market´s compliance with the new rule. Shortly afterwards, the third booklet of the series “Understanding Extended Warranty Insurance: Guidelines for Consumers” was published, to explain, in a simple and direct language, the main features of this insurance. The Retail Manual of Best Practices, also published, explains the procedures to be followed by insurance representatives when supplying their products to consumers.

Surety Bonds: an event was conducted in Brasilia directed at the State Attorneys’ Offices and the Office of the Attorney General of the Ministry of Finance to supply all the elements that would allow tax foreclosing agencies to analyze the product so they can accept it as a guarantee of procedures. From then on, it was made clear that an explanatory booklet along the lines of the series “Understand insurance” should be written for distribution among Federal and State attorneys, and members of the Judiciary body, so that, due to lack of knowledge, they do not limit the acceptance of this type of guarantee. Another important action was a study showing that, by means of insurance, insurers will be able to

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95 Summary


complete works in case an accident occurs along the way. If approved, this will ensure a new step forward for Surety Bonds in Brazil.

Housing Mortgage Insurance: two technical seminars were promoted, the first specifically directed at the operations aspects of insurance companies; the second, broader, centered on professionals at the managerial level who work for insurance companies, as well as financial agents, who develop the policies. An explanatory booklet was also written, the fourth in the series “Understand Insurance,” to explain and disseminate Housing Mortgage Insurance in clear and simple words,

standardizing procedures to improve the recovery levels against utility companies; the second, on “Condo Underwriting,” intends to set standards for the analysis and acceptance of risks; and the third, on “Standardization of Inspection Reports,” is aimed at the development of standards that can meet the needs of all insurance companies and create the basis for a future database to be used by insurance companies that join the project.

Liability Insurance: two events were organized: “III International Meeting of Financial Lines insurance (D&O and E&O)” and the “First Civil Liability Seminar”. Both had the support of ENS and the Brazilian Risk Management Association - ABGR.

Homeowners Insurance: studies were promoted based on Susep and IBGE data that for the first time allowed a glimpse of the rate of penetration of homeowners insurance per state and, in a more consolidated form, in the five regions of Brazil. Moreover, an explanatory booklet called “Understands Homeowners Insurance” was also published to disclose in a clear and transparent way all the information pertaining to this type of policy, highlighting as well the differences between the Homeowners Insurance, the Condo insurance and the Housing Mortgage Insurance. Three important explanatory documents are also being written: the first deals with “Electric Damages” and is aimed at rationalizing and

Property Insurance - Large Risks: two seminars were organized directed at the technical staff of Insurance companies; the first was on reinsurance, and the second on quality of risks. FenSeg also took part, with Inmetro (Brazilian Institute of Metrology, Quality and technology), in the discussions and studies for the formulation of Technical Guidelines for Thermal and Acoustic Insulation in Civil Construction, setting mandatory specifications for the products to be made available on the domestic market. FenSeg also participated in the debates organized by the Fire Safety Parliamentary Front.

Functional Commissions FenSeg´s eleven functional commissions give significant support to the Board, evaluating matters linked to their respective areas of performance. They are: Legal Matters; Car; Extended Warranty; General Civil Liability;

Brazilian Insurance Market | Results and Prospects

Credit Risks and Surety Bonds; Engineering Risks; Property Risks- Large Risks; Retail Property Risks ; Homeowners insurance; Rural insurance; e Transportation insurance.

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FenSeg Board | 2013 – 2016 President Paulo Miguel Marraccini

Allianz Seguros S/A

Vice-president Eduardo Stefanello Dal Ri

Sul América Companhia Nacional de Seguros

José Sérgio Bordin

Bradesco Auto/RE Companhia de Seguros

Luiz Alberto Pomarole

Porto Seguro Cia. de Seguros Gerais

Marcos Eduardo dos Santos Ferreira

Mapfre Seguros Gerais S/A

Director Acacio Rosa de Queiroz Filho

Chubb do Brasil Cia. de Seguros

Antonio Eduardo Márquez de Figueiredo Trindade

ACE Seguradora S/A

Carlos Adrian Magnarelli

Liberty Seguros S/A

Francisco Caiuby Vidigal Filho

Yasuda Marítima Seguros S/A

Gustavo Henrich

J. Malucelli Seguradora S/A

Hélio Hiroshi Kinoshita

Mitsui Sumitomo Seguros S/A

Hyung Mo Sung

Generali Brasil Seguros S/A

João Francisco Silveira Borges da Costa

HDI Seguros S/A

Leon Gottlieb

Itau Seguros

David Colmenares

Zurich Minas Brasil Seguros S/A

Luiz Felipe Smith de Vasconcellos

Tokio Marine Seguradora S/A

Miguel Perez Jaime

Allianz Seguros S/A

Ricardo Cruz Barreto

Cardif do Brasil Seguros e Garantias S/A

Executive Director Neival Rodrigues Freitas

Brazilian Insurance Market | Results and Prospects

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97 Summary


FenaPrevi The National Federation of Private Pension and Life brings together and represents companies and entities that operate in the Private Pension and Universal Life segments. Its purpose is to strengthen the economic segments in which its affiliates are present, contributing to the economic and social development of the country.

Brazilian Insurance Market | Results and Prospects

Regarding the Federation

Member Companies

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98 Summary


A WORD FROM THE PRESIDENT/CEO

Overcoming challenges The year of 2015 was marked by the expectation of seeing the Personal Lines of Business Insurance plan, known elsewhere as “Universal Life Insurance” regulated.

A

lmost at the turn of the year, Susep placed in public consultation a draft of the CNSP Resolution settings forth the “rules and criteria for the structuring, sale and operation of Universal Life Insurance,” FenaPrevi having presented several suggestions for its improvement. The regulation of this type of Personal Lines of Business Insurance is being expected by the market since FenaPrevi filed an official document with Susep with suggestions for improvements on the draft of the Regulation. The said insurance has several features, the main one being the fact that it makes possible the interaction of risk protection (coverage) with the accrual and capitalization of funds. Moreover, since its structure is more flexible, the insurance will be able to properly meet the needs of a diversified target audience. In the segment of pension plans that aim at the accrual and capitalization of funds, continuity was given to the efforts towards regulation of the so-called “VGBL Health,” since FenaPrevi believes in its potential as an important means of building domestic savings in the medium and long term. This not only aims at the complementation of the retirement pension supplied by the Social Welfare system, but also gives people the possibility to have funds to keep their private insurance and private plans

Brazilian Insurance Market | Results and Prospects

Osvaldo do Nascimento for the safety of their health, thereby contributing to the sustainability of the segment of Supplementary Health. It is important to document the enactment of CMN Resolution 4,444, which was the outcome of long and intense discussions about the rules regarding the investment of reserves, provisions and funds of insurance market entities. In this sense, the resolution already considers specific provisions linked to open private pension plans that are exclusively aimed at “eligible participants,” opening the way towards its future regulation by CNSP. It is fitting to record a special reference to Marco Antonio Rossi and Lúcio Flávio Conduru de Oliveira, for their dedication to the development of the segments represented by FenaPrevi, which are important social safety nets and the tools that promote economic activity in the country. The year of 2015 was marked by great challenges, and next ones will also be, but FenaPrevi will continue working to overcome them. The new Statutory Management Board of the Federation presided over by Edson Luis Franco and elected in 2015 for the 2016-2019 mandate will remain committed to Brazilian society and the economic and social development of the country.

FenaPrevi

99 Summary


Major institutional initiatives A FenaPrevi has conducted studies advocating the non-applicability of ITD - the Brazilian State Tax on inheritance and Donation of Any Assets or Rights - on Open Complementary Pension and Universal Life Plans with survivor coverage.

Segregate Estate: brought up to date the draft of the bill presented to Susep in 2005, with a view to send it to Congress, as it is understood to be an important tool to protect consumers’ interests.

Biometric Mortality Tables: Susep approved the BR-EMS Universal Life: Suggestions were sent to Susep´s Public Consultation 08/15 referring to the draft of the CNSP Resolution that makes provisions “on rules and criteria for structuring, selling and operating Universal Life Insurance.”

biometric mortality tables BR-EMS, 2015 version, with onset of validity in 01/07/2015, formulated on the basis of a study ordered by FenaPrevi to the Mathematics Laboratory of the Federal University of Rio de Janeiro - UFRJ.

VGBL Health: participated in meetings held with the Executive and

LAT/TSIR: proposals were sent to Susep to mitigate the effects of

the Legislative bodies to support approval of PLC 118/15.

Resolution CMN 4,444/15: took part in the discussions that led to the enactment of the rule that governs the investment of funds for provisions of regulated entities and regulates the extension of the remaining stated periods and repricing of fixed income portfolios of financial investment funds pegged to plans of the PGBL and VGBL (private retirement savings schemes) type, and governs the investment of funds in plans aimed at “eligible participants”.

Brazilian Insurance Market | Results and Prospects

volatility of TSIR- Term Structure of Interest Rates in the checking of the LAT Liability Adequacy Test and, consequently, on the results of companies, especially insurance companies who deal with traditional Open Complementary Pension plans.

FATCA: participated, jointly with CNseg, of meetings that resulted in the enactment of the Brazilian Federal Revenue Service´s Normative Instruction nº 1.571/15, which provides for the mandatory supply of information regarding financial operations of interest.

FenaPrevi

100 Summary


Tax on Inheritance and Donation of any Assets or Rights ITD: conducted studies advocating the non-applicability of the tax on open

Suitability Recommendations for Private Pension Plans with Survivor Coverage: a document was produced

Complementary Pension and Universal Life plans with survivor coverage.

recommending that full member companies comply with suitability criteria when complementary pension plans with survivor coverage are bought as well as during follow-up through time, in order to adjust to customers’ evolving profile and changes in goals.

Guide of Good Practices for Simulators: a document was produced recommending to full member companies, at their discretion, the use of criteria for the formulation of simulations of values in private retirement saving schemes with survivor coverage.

Functional Commissions FenaPrevi relies on the contribution of eight Functional Commissions specialized in the following areas of interest: Actuarial; Accounting and Tax-related Matters; Legal Matters; Communications, Marketing, Events; Investments; Product for Survival; Risk Products; SIDE (Electronic Document Exchange System) Management.

Brazilian Insurance Market | Results and Prospects

FenaPrevi

101 Summary


FenaPrevi Board | 2013 - 2016 President Osvaldo do Nascimento

Itaú Vida e Previdência S.A.

First Vice-president Pedro Cláudio de Medeiros B. Bulcão

Sinaf Previdencial Cia. de Seguros

Vice-presidents Francisco Alves de Souza

Comprev Previdência S.A.

Luciano Snel Correa

Icatu Seguros S.A.

Lúcio Flávio Conduru de Oliveira

Bradesco Vida e Previdência S.A.

Miguel Cícero Terra Lima

Brasilprev Seguros e Previdência S.A.

Directors Alfredo Lalia Neto

HSBC Seguros (Brasil) S.A.

Fabiano Lima

Sul América Seguros de Pessoas e Previdência S.A.

Claudio César Sanches

Itaú Vida e Previdência S.A.

Edson Luís Franco

Zurich Vida e Previdência S.A.

Eduardo Soares de Freitas

Mapfre Previdência S.A.

Fabio Lins de Castro

Prudential do Brasil Seguros de Vida S.A.

João Batista Mendes Angelo

Zurich Santander Brasil Seguros e Previdência S.A.

Marcelo Barroso Picanço

Porto Seguro Cia. de Seguros Gerais

Milton Amengual Machado

Aspecir Previdência

Nilton Celente Bermudez

GBOEX Grêmio Beneficente

Oriovaldo Pereira Lima Filho

Previmil Previdência Complementar S.A.

Ricardo José Iglesias Teixeira

Centauro Vida e Previdência S.A.

Roberto Barroso

Companhia de Seguros Aliança do Brasil S.A.

Rosana Techima Salsano

Caixa Vida e Previdência S.A.

Stefano Convertino

Generali Brasil Seguros S.A.

Washington Luís B. da Silva

Metropolitan Life Seguros e Previdência Privada S.A.

Executive director Luiz Peregrino Fernandes Vieira da Cunha

Brazilian Insurance Market | Results and Prospects

FenaPrevi

102 Summary


FenaSaĂşde The National Federation of Supplementary Health is the institutional representative of the segment of companies that operate in the Supplementary Health sector, supporting specialized insurance companies as well as companies that work with other types of plans but are subject to ANS regulations.

Brazilian Insurance Market | Results and Prospects

Regarding the Federation

Member companies

FenaSaĂşde

103 Summary


A WORD FROM THE PRESIDENT/CEO

“A very complex year” The year of 2015 proved to be extremely complex for the economy, society, the country as a whole. Marcio Serôa de Araujo Coriolano

F

or the first time in many years, the sector of supplementary health saw a decrease in the number of beneficiaries due to the same factor that fueled our sector forward during the last decade: product, employment, income. Our projections indicate that, in 2016, the healthcare-related expenditure of the sector as a whole - which will reach BRL 137.7 billion, a 13.3% increase - will continue to grow faster than the revenue from consideration, which will increase 12.8% and reach BRL 167.3 billion. The estimated loss ratio will be of 82.3%. Nonetheless, we do have achievements to celebrate. The contribution of each representative of the affiliated companies, together with the technical body of the executive directors’ board, was paramount for the consolidation of the mission of this Federation.

Brazilian Insurance Market | Results and Prospects

We got the recognition of high-ranking people in the sector. The active presence of the Federation in all the forums of debates, the organization of events for the dissemination of knowledge on the most important matters and the intense exchange of experiences between affiliated companies made, once again, all the difference and put FenaSaúde in prominent position. FenaSaúde did not stay powerless before the 2015 challenges - it put forward proposals after having identified the various problems faced by the sector. One must forge ahead despite the even more complex scenario that is coming. I have no doubts that this will be the spirit that will lead the work of the Federation. I would like to extend my gratitude to my colleagues, my wishes for success to the new CEO and board of the 2016/2019 mandate.

FenaSaúde

104 Summary


Supplementary Health feels the consequences of the economic crisis In the macroeconomic field, Supplementary Health has benefited from economic development in the last decade and significantly expanded its basis of beneficiaries. Because it was perceived as a high priority consumption item by families and companies, Supplementary Health continued to grow at a fast pace until the downturn in economic activity increased the rate of formal unemployment and reduced the income of the population. For over 10 years, the rate of increase of the population benefiting from medical coverage was quite high, of the order of 3.4% in average per year. The average growth rate of dental plans is higher - 13.7%, while Brazilian demographics increase barely 1%. Recently, these rates have shrunk and, for the first time since the beginning of the historical series, we have seen a decrease in the number of beneficiaries of medical plans. From January to December of 2015 only, 953 thousand beneficiaries of health insurance plans left the market - a 1.7% decrease compared to December 2014. The slump was observed in personal as well corporate plans. There were, however, 846 thousand beneficiaries who bought exclusively dental insurance plans in 2015. Upon addition of the two segments, the sector showed a decrease of 107 thousand beneficiaries, totaling 71.4 million. This decrease was more pronounced among beneficiaries of corporate health insurance plans. This type of plan fell from a growth level of 7.2% between December 2012 and December 2011 to a negative rate of 1.7% in December 2015, compared with the same month in 2014.

Brazilian Insurance Market | Results and Prospects

In terms of economy and finances, the total expenditure of healthcare companies and exclusively dental insurance care companies amounted to BRL 147.5 billion in 2015, an increase of 12.6% compared to 2014. Revenue from consideration was BRL 148.3 billion and increased 13.7%, using the same comparison. During the same period, healthcare-related expenditure - including expenses with medical appointments, exams, hospital admissions, treatments and therapies among others – amounted to BRL 121.5 billion, an increase of 13.4%. The loss ratio remained at high levels in the Supplementary Health market, especially in the medical care modalities (Healthcare Cooperatives, Group Medical Care and Insurance Companies specializing in healthcare), in which the loss ratio was 82.1% and, in the exclusively dental care ones, 45%. Companies affiliated with FenaSaúde have been responsible for covering of 28.8 million beneficiaries of healthcare and exclusively dental care plans, a number that corresponds to 40.4% of contractual bonds in the Supplementary Health market. During this period, although most of the beneficiaries were tied to medical care plans (15.4 million), the exclusively dental care plans (13.4 million) presented a higher rate of increase, 2.1%, compared to the same period the previous year. In 2015, the companies affiliated with the Federation paid BRL 49.4 billion in medical and dental care to their beneficiaries, an increase of 13.4% in comparison with 2014. During the same period, the revenue from consideration amounted to BRL 60.0 billion and increased 15%, with the same years being used for comparison.

FenaSaĂşde

105 Summary


Once again, the sector´s costs speedily grew with the enactment of the List of Covered Procedures, whose update added 21 new procedures, including laboratory tests and one more oral drug for the treatment of cancer at home, in addition to broadening of the number of consultations with speech therapists, dieticians, physical therapists and psychotherapists. The year of 2015 was productive in bringing frauds in the use of Medical Implants, Prosthetic Devices and Special Materials - OPME to the attention of society and the government. Two Parliamentary Inquiry Commissions were created in Congress to investigate the matter due to the repercussions of a story aired on TV. Additionally, an Inter-ministerial Work Group was created that produced diagnosis and proposals that were essentially aligned with the requests long made by the sector in its search for more discipline and transparency in the market of medical supplies.

In order to invest and give continuity to its primary mission of protecting the population, carrying out more than 1 billion annual medical procedures - among medical visits, tests and exams and other diagnostic services, treatments, therapies and admissions - the Supplementary Health sector needs to innovate, have legal security and regulatory stability. The Federation launched the basis for a new perspective on Supplementary Health with concrete proposals discussed with all the other relevant players during the First Supplementary Health Forum to be more upfront and transparent with society about costs, empower consumers, rethink the current model of compensation, which encourages wastefulness and misuse, give a broader choice of product options and put greater responsibility on all agents.

Matters which were given special attention by FenaSaĂşde List of Covered Procedures and Events in Health: in this update of

Quality Factor: ANS created a work group to develop the Quality Factor,

the List the innovation resided in the adoption of the FormSUS tool - a service made available by the Department of Computer sciences of the Unified Health System - DATASUS, for use in the Brazilian Unified Public Health System SUS and other government agencies. The tool contributed significantly to the improvement of the process, ensuring the systematization, unification and greater quality of entrance for inputting requests for inclusion/change/ exclusion of procedures and Guidelines for Use.

which is one of the elements that make up the escalation index set forth in Act 13.003/14. This indicator, however, will only be used in cases where the contracts are of the free negotiation type and there is no agreement in the 90 calendar days following January 1st. Initially, the workgroup dealt with the application of this in contracts made between hospitals and insurance companies. For other healthcare institutions the debates were postponed until 2016, and for healthcare until 2017.

Brazilian Insurance Market | Results and Prospects

FenaSaĂşde

106 Summary


Transparency of Information in Supplementary Health:

Reformulation of the ANS Index of Complaints: results were

NR 389, called the Transparency Normative Resolution made it mandatory to make available the minimum required content for information pertaining to health plans. Among the rules that were established, the norm made it mandatory for insurance companies to make available to their beneficiaries the Beneficiary Information Portal for Supplementary Health (PIN-SS), containing register data and healthcare data, through the demonstration of the use of services; it will come into effect in January 2016.

disclosed on the ANS page on the Internet, including graphs and ranking with a list of the ten insurance companies with the highest rate of complaints in the general index of complaints per size and line. Another innovation was to allow consumers to have access to the complaints per ranking type (care and non-care) and subtheme (service network, maximum deadlines for services, list of procedures, reimbursement, among other things), in addition to data on the complaints per company, allowing them to calculate the indicators of each one.

Key Institutional Actions Projections: the projection models for the Supplementary Health

Compliance Cost Project: FenaSaúde helped identify the regulations

market were improved, inputting new variables. The prospective analysis, made quarterly, brought more assertiveness to the results disclosed by CNseg. The results are submitted to the Federation Board and, including new parameters, can then be adjusted according to the expectations of each insurance company for the sector.

that are costlier to insurance companies when complying with ANS requirements, and helped identify accounts linked to regulatory costs and validate the result. A report was submitted in which were stated the estimated results of compliance-related costs in relation to operating costs as well an analysis of the nature of costs for the periods.

Analysis of the current scenario: FenaSaúde worked with CNseg´s

Exposure to the media: high exposure was achieved in the media

Market Surveys Committee - CEM, to write three new editions of the Analysis Report on the Current Situation of the Market of Insurance, Private Open Complementary Pension, Supplementary Health and Premium Bonds. The document summarized the main macroeconomic indicators, assessed various aspects pertaining to the insurance sector and short-term expectations. In the Supplementary Health Market, among other aspects, the document stressed the annual evolution of expenditure with per capita health care during the year above the inflation that affects the other prices in the economy.

with 208 positions taken in writing, two articles published in 23 media vehicles and 42 interviews. Additionally, over 37 posts were published in the hotsite “Plano de Saúde – O que saber” (Health care Plan—What you should know) and more than 151 posts on Facebook. As a result, 1,183 mentions were made to the Federation, which came through positions, suggestions of topics and mediation of interviews requested. The 1st Forum of Supplementary Health itself generated 114 articles e 25 posts in the social media, reaching 156 thousand people. The articles were

Brazilian Insurance Market | Results and Prospects

FenaSaúde

107 Summary


mainly positive: 756 positive insertions were made, 341 neutral ones and 86 negative reports.

Escalation Guide for Plans e Private Health Insurance: a Guide was launched – during the 7th Brazilian Conference on Insurance, Reinsurance and Private Pension – to explain in depth the adjustment rules published by ANS, showing how these adjustments are made and why they are needed to offset financial losses and ensure economic and financial balance in the system. All in all, 65 articles were published about the Guide.

Permanent Mobilization: 486 meetings were held, an average of 40 per month. There were 13 board meetings, 90 Functional Commissions and Workgroup meetings, 134 meetings at ANS, 121 technical meetings and audio conferences, 78 institutional meetings with several entities and companies, and 28 in-house meeting with the Communications Consultancy team.

Consumers’ Guide and Pregnancy Guide: FenaSaúde continued to distribute the Guide at events. All three FenaSaúde guides are part of the communication platform “Plano de Saúde - O Que Saber” (Healthcare Plan—What you should know), developed by FenaSaúde, with the support of the hotsite www.planodesaudeoquesaber.com.br the Facebook page.

Functional Commissions FenaSaúde has eight Commissions, as follows: Accounting; Healthcare matters; Legal matters ; Communications; Ethics; Dental care; Relationship with Suppliers; and Health.

Brazilian Insurance Market | Results and Prospects

FenaSaúde

108 Summary


FenaSaude Board | 2013 - 2016 President/CEO Marcio Serôa de Araujo Coriolano

Grupo Bradesco Saúde

Vice-Presidents Edson de Godoy Bueno

Amil Assistência Médica Internacional S.A

Gabriel Portella Fagundes Filho (up to 5/2/15)

Comprev Previdência S.A.

Maurício Lopes (as of 6/2/15)

Grupo SulAmérica Saúde

Paulo Sérgio Barros Barbanti (up to 19/8/14)

Bradesco Vida e Previdência S.A.

Irlau Machado Filho (as of 20/9/14)

Grupo NotreDame Intermédica

João Carlos Gonçalves Regado

Golden Cross Assistência Internacional de Saúde Ltda

Board André do Amaral Coutinho

Omint Serviços de Saúde Ltda.

Francisco Caiuby Vidigal Filho

Yasuda Marítima Saúde Seguros S.A

Marcos Aurélio Couto (up to 26/3/14)

Itaú Vida e Previdência S.A.

José Augusto de Paula (up to 31/3/15)

Zurich Vida e Previdência S.A.

Sérgio Ferreira dos Santos (as of 1/4/15)

Gama Saúde Ltda.

Max Joaquim Ernesto Thiermann Waller (up to 17/4/15)

Prudential do Brasil Seguros de Vida S.A.

Miguel Pérez Jaime (as of 18/4/15)

Allianz Saúde S.A

Newton José Eugênio Pizzotti (up to 3/9/15)

Porto Seguro Cia. de Seguros Gerais

Fabio Luchetti (as of 4/9/15)

Porto Seguro – Seguro Saúde S.A

Rafael Moliterno Neto (up to 3/9/15)

GBOEX Grêmio Beneficente

Helton Freitas (as of 4/9/15)

Unimed Seguros Saúde S.A

Randal Luiz Zanetti (up to 26/3/14)

Centauro Vida e Previdência S.A.

Mauro Silvério Figueiredo (as of 27/3/14)

Odontoprev S.A

Roberto Laganá Pinto

Care Plus Medicina Assistencial Ltda.

Washington Luiz Bezerra da Silva

Metlife Planos Odontológicos Ltda.

Executive Director José Cechin

Brazilian Insurance Market | Results and Prospects

FenaSaúde

109 Summary


FenaCap The National Bond Insurance Association is a non-profit organization in Brazil that comprises bond insurers all over the country.

Brazilian Insurance Market | Results and Prospects

Regarding the Federation

Member Companies

FenaCap

110 Summary


A WORD FROM THE PRESIDENT/CEO

A challenging year The 2015 economic downturn and uncertain scenario affected premium savings bonds – a market traditionally subject to variables such as revenues, interest and inflation rates.

H

owever, as this is a very peculiar market, technical reserves increased by 3.7% that year, since they encompassed resources owned by bond holders and were later redeemed when they came to term. This amount totaled BRL31.058 billion, thus hinting at a large number of individuals saving, as shown by a joint survey conducted by the Federation/Association and the Overview Institute about consumers’ perception of bond savings. Premium bond revenues reached BRL21.510 billion, a slight 1.6% decline against revenues in 2014. Although the scenario was not particularly favorable, it was a productive year. FenaCap conducted an in-depth study about the role of premium savings bond in the Brazilian social and economic agenda which evidenced an increasing importance of this industry in people’s lives. The findings of this study led FenaCap to launch an institutional campaign on digital media aiming to strengthen consumers’ perception of the positive attributes of this industry and to allow more visibility to the benefits granted by the various business solutions which made prize drawings available. Additionally, all through 2015 FenaCap promoted internal discussions oriented at forwarding suggestions to the regulatory agency as our

Brazilian Insurance Market | Results and Prospects

Marco Antônio da Silva Barros contribution to more market-sensitive rules that were under construction within the new regulatory framework. Within this perspective, the Association supports the sustainable growth of an industry that generates over 72 thousand direct and indirect jobs, assists security financial education and internal saving and collects more than BRL1.2 billion in taxes/year. A critical step in this process was precisely taking a new stance towards bond savings. The market evolved to a point in which premium bonds were solely oriented towards accrual and prize drawings. However, a new dimension has been added by the availability of an array of business solutions encompassing prize drawings as a response to consumers’ – both individuals and corporations - demands. Another key step was the design of a new governance model which, in practice, stands as the first move towards self-regulation. FenaCap started a series of studies about the feasibility of moves into the property market that will be carried on through 2016. That explains why it was a very challenging year, which, nonetheless, brought about significant institutional advances that strengthened the industry and helped to pave the road towards a new growth cycle.

FenaCap

111 Summary


Bond modalities There are currently four premium bond modalities that may be traded individually or associated with other products, services or deals. Products are formally framed for trading purposes. Check them out.

FenaCap Modalities

Major institutional initiatives The Role of Premium Savings Bonds in the Brazilian Economic and Social Agenda: This white paper adds support to this role as it lies upon an in-depth study about the impact of premium bonds trading in the everyday life of Brazilian families and of the business sector as a whole. The findings portray the importance of this industry as a tool for financial education as well as a solution to leverage new business and social development, and to increase philanthropy.

Brazilian Insurance Market | Results and Prospects

Survey: Consumers’ Perception of Bonds: Together with the Carioca Overview Institute, the Association conducted a qualitative investigation that unveiled consumers’ – whether they are regular customers or not – views about the bond solutions that are available to individuals. The survey was conducted in seven capital cities and its findings have guided FenaCap’s institutional communication in its efforts to reinforce a positive view of premium bonds and to fill identified gaps of knowledge about prize drawings.

Institutional Campaign: The new stance towards governance led the Association to launch an institutional campaign to spread information about the socioeconomic benefits of premium bonds. Entitled Realizando Sonhos, Movimentando a Economia [‘Making Dreams Come True, Moving the Economy Forward’], the campaign was released through social media

FenaCap

112 Summary


and placed banners on economy and finance-oriented websites, blogs owned by journalists with large-circulation press and dozens of other types of editorial channels.

4th Premium Bonds Workshop: This event gathered journalists and aimed to release the findings of the survey, increase society’s awareness of business solutions that use drawings and narrow the relationship with think-tanks.

The ANADEC Affair: The Association followed closely the suits placed by ANADEC (National Association for Citizenship and Consumer Protection) as a response to the lawsuits it had been the target of under the argument that the qualifying period mechanism carried by the majority of bond modalities was as an abusive and detrimental practice for consumers. ANADEC won the suit as the Supreme Court of Justice (STF) ruled in favor of the lawfulness of the qualifying period and its applicability.

Congress: The Association followed the procedures of PLS 186/14 in Congress, which provides for the operation of hazard games across the

country. It has also followed the procedures of PL 315/15 at Pernambuco State Assembly, which provides for the compulsory nature of the redemption, donation or benefits of whatsoever nature that derive from drawings, marketing campaigns, premium saving bonds and alike promoted by corporations based in the state to be complied with by organizations based in that state.

Financial Education: The Association, together with financial consultant Ă lvaro Modernell, released several articles about financial education in its website aiming to support consumers to plan their personal finance and to better understand how the financial market works and the role of Premium Bonds in this market.

Governance Model and Internal Regulation: The Board passed the Declaration of Best Practices Directives for Premium Bonds, a document to be eventually signed by affiliated companies to ratify the commitments therein undertaken. The theme developed through the design of our Governance Model and Internal Regulation that set the rules which will formally guide all the issues involved in the industry’s best practices.

Functional Commissions The seven functional commissions within FenaCap lend relevant support to the Board as they assess commission-specific areas of action such as Products and Coordination, Management and Finance, Actuary, Internal Controls, Legal Issues, Information Technology and Communications.

Brazilian Insurance Market | Results and Prospects

FenaCap

113 Summary


FenaCap Board | 2013 - 2016 President/CEO Marco Antonio da Silva Barros

Brasilcap Capitalização S.A.

Vice-Presidents André Luiz Lauzana dos Santos (as of maio de 2015)

Sul América Capitalização S.A. – Sulacap

Gabriel Portella Fagundes Filho (up to abril 2015)

Sul América Capitalização S.A. – Sulacap

Carlos Infante Santos de Castro (up to março de 2015)

Sul América Capitalização S.A. – Sulacap

Ricardo Alahmar (as of março 2015)

Bradesco Capitalização S.A.

José Sérgio Bordin (up to fevereiro de 2015)

Bradesco Capitalização S.A.

Marcos Renato Coltri

Brasilcap Capitalização S.A.

Ryvo Matias Pires dos Santos

Caixa Capitalização S.A.

Managing Directors Leon Gottlieb (as of março 2015)

Cia. Itaú de Capitalização

Fernando José Costa Teles (up to fevereiro de 2015)

Cia. Itaú de Capitalização

Luciano Snel Correa

Icatu Capitalização S.A.

Patricia Martins de Freitas de Oliveira

Santander Capitalização S.A.

Renato Fernandes

Mapfre Capitalização S.A.

Ricardo Athanásio Felinto de Oliveira

Aplub Capitalização S.A.

Ronaldo Cosme Gonçalves Ferreira

Liderança Capitalização S.A.

Rosangela Rodrigues da Silva

HSBC Empresa de Capitalização (Brasil) S.A.

Executive Director José Ismar Alves Torres

Brazilian Insurance Market | Results and Prospects

FenaCap

114 Summary


Access other CNseg’s publications on the link below

Manual de Boas Práticas em Seguros – Orientações Gerais para Varejistas Revista de Seguros • Edição nº 896 Jan / Fev / Mar de 2016

Guia de Acesso do Consumidor às Empresas do Setor de Seguros


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