SulAmerica Announces Net Profit of R$112.8MM

- Health insurance growth is the quarter's highlight, driven by small and medium-sized enterprises (SMEs) and dental portfolios

RIO DE JANEIRO, May 2, 2012 /PRNewswire/ -- Sul America S.A. (BM&FBovespa: SULA11) registered R$112.8 million of net profit in the first quarter of 2012, 10.6% higher than the first quarter of 2011. It reflects the good performance in all business units and the profitability of its operations.

Insurance premiums grew by 14.5%, totaling R$ 2.5 billion. The health insurance portfolio, which accounts for 69.0% of the company's total revenues and has 2.4 million members, registered premiums of R$ 1.7 billion in the first quarter (a 20% increase over 1Q11). The highlight of this segment was the small and medium-sized companies (SMEs) portfolio, which grew 21.1% in members and 29.3% in premiums compared to the same quarter last year.

The dental insurance portfolio ended the period with R$ 22.5 million in premiums and reached 467,000 members, 98% higher than the same period of 2011. This growth reflects both the integration of approximately 141 thousand members from the acquisition of Dental Plan, as well as the portfolio's organic growth.

In the auto insurance, SulAmerica's second largest portfolio, premiums totaled R$ 527.1 million, a 2.3% increase over the first quarter of 2011. The result was impacted by the competitive environment and by the slowdown in the pace of new car sales in the period. The insured fleet reached approximately 1.5 million vehicles.

In other property/casualty insurance, the Company registered growth of 2.7% in 1Q12 compared to the same period last year. The highlight is the housing insurance portfolio, which performed well during this period.

The life insurance segment added up to R$ 125.3 million in premiums this quarter, 12.9% above the first quarter of 2011. The result was driven by the increase in new loan protection insurance premiums, and also by the low ticket insurance sales.

In the asset management segment, SulAmerica ended the quarter with R$22.9 billion in assets under management.

The Company's financial results grew 3.0% this quarter compared to 1Q11 totaling R$ 158.1 million and reached 117.7% of the CDI return.

The Company's average loss ratio came to 75.7% in the first quarter, 1900 bps higher than 1Q11. The combined ratio stood at 101.1%, 1300 bps above the one registered in the first quarter of 2011.

Highlights

The Company released its 2011 Annual Report (www.sulamerica.com.br/relatorioanual) at the quarter end. For the fourth consecutive year, SulAmerica has adopted GRI (Global Reporting Initiative) guidelines for the report. GRI is an international organization that proposes standards for environmental, social and corporate governance performance (ESG) disclosures.

In February, the Company successfully issued its first debentures in the amount of R$ 500 million. In April, Sul America Investimentos received the 2012 Top Management Award in the Focused Fixed Income category. The award is given by the newspaper Valor Economico.

The Board of Directors approved a new dividend policy to be adopted in 2013, based on the 2012 Company results. The policy includes a proposal to distribute at least 30% of the annual adjusted net income, keeping the payment of quarterly interim dividends.

1Q12 results Conference Call

On this Wednesday (May 2nd), the Vice President for Control and Investor Relations, Arthur Farme, together with Health and Dental Vice President, Gabriel Portella, and the Vice President for Auto and Property/Casualty, Carlos Alberto Trindade Filho, will host a Conference Call to comment on the quarter results and answer investors and analysts' questions.

In Portuguese:
Phone: +55 (11) 4688-6361
Time: 10 AM (BR) | 09 AM US EDT

In English:
Phone: +1 (888) 700-0802
Time: 12 PM (BR) | 11 AM US EDT

The conference call will be transmitted live on our website www.sulamerica.com.br/ri

SulAmerica Press Relations Contact Info

Sara Dalsin / Solange Guimaraes
Phone: +55 11 3779-7615 / 7614
E-mail: imprensa@sulamerica.com.br

SOURCE Sul America S.A.