SulAmerica Insurance Premiums Up 16.2% in 1st Six Months of Year, Reaching R$ 4.5 Billion

SAO PAULO, August 8, 2011 /PRNewswire/ --

Sales heat up: health insurance boosts revenues by 18.9%, while revenues for auto insurance portfolio register 16% increase

Sul America S.A. (BM&FBovespa: SULA11) closed the first six months of 2011 with R$ 4.5 billion in revenues from premiums, which represents growth of 16.2% in relation to the same period of the previous year. The company's main portfolios continue with excellent performance in sales. The health and dental segment, which accounts for 66% of the company's premiums, racked up earnings of R$ 2.9 billion, showing growth of 18.9% compared to the first six months of 2010. Auto insurance premiums, which account for 24% of earnings, came to R$ 1.1 billion, a growth of 16% comparing the two six-month periods.

With regard to the second quarter, the company reports that insurance premiums totaled R$ 2.3 billion, exhibiting a 16% increase compared to the second quarter of 2010. Health insurance revenues grew by 19.5%, with group health premiums registering a 23% increase over the second quarter of last year. The highlight of this segment was insurance for small and medium-sized enterprises (SME) that scored an increase of 37.2% in earnings from premiums, in comparison with the period from April to June in 2010.

"This significant growth of earnings is the direct result of the restructuring the company underwent which brought it closer to brokers and clients. We invested in expanding our presence in the country's principal regions and wrapped up the first six months with a service structure composed of 54 branches and offices. We also increased the network of SulAmerica's Automotive Service Centers (C.A.S.A. - Centros Automotivos de Super Atendimento), which now have 30 units throughout Brazil, offering high quality service for those insured by SulAmerica Auto. The whole company is focused on offering even more service and expediting service delivery. This high level of engagement is already noticeable to our customers," evaluates SulAmerica CEO, Thomaz Cabral de Menezes.

Auto insurance premiums showed a growth of 10.2% in the second quarter of 2011 compared to the same period of the previous year. In terms of its insured fleet, SulAmerica's growth was even greater - 21.5% - with about 1.5 million vehicles insured.

Total claims for SulAmerica in the second quarter were 78.2%, while the combined index stood at 103.9%. The result of investments not linked to VGBL retirement and pension portfolios totaled R$ 131.9 million in the second quarter, with profitability equivalent to 102.9% of the CDI. In the first six months of the year, this portfolio yielded a result of R$ 270.9 million, with profitability of 106.9% of the CDI.

Net profits for the second quarter came to R$ 30 million in recurring terms, showing a decline of 40.3% in relation to the same period in 2010. This reduced result is the consequence of a R$ 76.5 million increase to provisions associated with the life insurance portfolio due to a judgment in a legal proceeding to which the subsidiary is a party, and is related to the adaptation of group life insurance policies promoted in 2006. As a result, profits for the six-month period, which came to R$ 131.9 million, with a drop of 2.7% compared to the first six months of 2010, would be R$ 185 million, with a rise of 36% over the same period of the previous year. Annualized profitability on equity stood at 9.4%. as the company closed the period with total assets of R$ 12.7 billion.

Dividends

Pursuant to the company's dividend policy approved last May, SulAmerica will make a quarterly dividend distribution in the amount of R$ 0.036 per unit, close to R$ 10 million. The payment of dividends to shareholders for the second quarter will be carried out on August 18th.

CONTACT:
Daniela Campos
Phone: +55-3779-5045
Email: daniela.campos@sulamerica.com.br