Porto Seguro Presentation 2018

2. Differentials

Index

4. Forward-looking

A family’s dream driven by human relationships and a keen eye for details turning into one

of the biggest companies in Brazil

1. About us

3. Results and progress

1. About us

Over the last 70 years Porto Seguro has been recognized by its entrepreneurship and high

quality services, responding rapidly to the changing environment ...

History

4

History and Companies of Porto Seguro

1976-

2002

2017-

2018

2010-

2016

2003

2004

IPO

2009 Launch of Azul

New Business Lines:

Life and Pension, Health,

Portopar (Asset),

Consortium*,

PortoSeg (Financing)

Partnership with

Itaú

Launch of Credit Card,

Health for Pet

Porto Faz, Bioqualynet , Oxigênio

(accelerator) and

Acquisition of Auto Portfolios (Chubb

and AIG)

Mr Abraão Garfynkel

bought Porto Seguro

from Bradesco

* Pool Financing for Cars and Houses

44th

Insurer

4th

Insurer

1972

1945

Foundation

… resulting in the first non-life insurance group in Brazil underpinned by a robust operational

structure, serving about 10 million clients and more than 20 million covered items

Who we are

5

Structure and Services

1st Non-life and 4th

largest insurer

group in Brazil

10 Million Clients and

20 Million covered

items

Business and Market Position

R$17 Billion

Total revenues

13K employees

35K independent

brokers

16K

exclusive

service

providers

48 Million

inbound calls /

year

1.7 Million home

repair services /

year

2.3 Million

roadside

assistance

services / year

3,6K Itaú banking

branches (bancassurance

distribution agreement)

R$19 Billion

Market Cap

Market leader in Auto,

Homeowner and

Landlord Rent

Guarantee Insurance

Porto Seguro

Cia de Seguros (Auto, P&C, Financial Risks)

Portomed (HMO)

*Controlled by

Jayme Garfinkel

Free Float

Azul Seguros(Auto)

PSIUPAR 70.8%

Porto Seguro

Health Insurance

Porto Seguro

Life and Pension

Porto Seguro

Uruguay(Auto, P&C, Financial Risks)

Portoseg(Consumer Finance and

Credit Card)

Portopar(Asset Management)

Porto Seguro

Consórcio (Pool

Financing Auto /House)

Porto Renova (Recycle and Dealer Car

Parts)

Porto Faz (Convenience Services)

Porto Seguro

Medical Services(Bioqualynet, ASO)

Insurance Financial Services General Services

Porto Seguro

Dental

Porto

Capitalization

Itaú

Unibanco 43.0%Porto Seguro

Controllers* 57.0%

29.2%

Porto Seguro

Surveillance

Free Float Shareholders Breakdown(June, 2018)

The Company consists of insurance, financial and general services business lines - Garfinkel

family holds control and Itaú Unibanco is a strategic shareholder

24%

38%

29%

6%

3%

Brazil USA Europe Asia Other

Carro Fácil(Long Term Car Rent)

Health for Pet

Internal Services(Call center, sales support &

Business accelerator)

Businesses Organizational Structure

6

Diversified top-of-mind portfolio with products leading in the auto, homeowner and landlord rent

guarantee insurance posing a significant market share

Source: Susep / Porto Seguro

Portfolio of Products

P & C

10.5%

2.6 million

Market Share

Insured Items

R$ 1.4 billionWritten Premiums

Health + Dental

3.1%

765 thousand

Market Share

Insured Members

R$ 1.3 billionWritten Premiums

Credit Card

2.4%

2.3 million

Market Share

R$ 1.1 billionRevenues

Units

Life

2.6%

7.1 million

Market Share

Insured Members

R$ 781 millionWritten Premiums

Consortium

1.4%Market Share

R$ 282 Million

Revenues

136 thousand Clients

Client’s

average

expenditure

In number

of houses

2nd3th

5.3 million

R$ 9.6 billion

Auto

27.6%Market Share

Vehicles

Written Premiums

7

56%# of Total Revenues # of Total Revenues # of Total Revenues # of Total Revenues # of Total Revenues # of Total Revenues

8% 7% 5% 7% 2%

Main Products (2017)

Insurance Non-Insurance

Strategy and Positioning

Our strategy is build on strong human relationships, delivering valuable services and focusing on

the broader needs of our customers throughout their lifetimes

Strategy

8

• Deliver high value added

solutions for customers,

avoiding commoditization

• Brand Segmentation Strategy

• Focus on retail (individuals and

SME´s) and diversified ‘small’ risks

• Profitability is more

important than growth

• Provide great experiences to

customers and brokers with

a ‘personal touch’, even in a

digital environment

• Successful strategies are proved

in the long term

• Brokers are essential for

our success and market

development

2.Differentials

Why We Are Different

Innovative solutions DNA and

first- mover advantage

Consistent underwriting and

one of the highest

profitability over time

Breadth of products offerings

provide full solutions for clients

and distribution channels

Most valuable

insurer brand

High quality-services and best auto

insurance retention rate of the industry

Top insurer choice by broker

Go beyond insurance

(ecosystem of interconnected

services)

A unique business model which combines strong culture and operational capabilities – our

competitive advantages are meaningful and hard to replicate

10

Strong

Relationship

Culture

Our Culture

The pursuit of happiness for clients, employees and thereafter shareholders is the reason for our

growth, rather than aiming to be the biggest and most powerful company

• Relationships are our

strongest assets

• Detail-oriented driven

• Entrepreneurial and

Innovative Spirit

• Employee empowerment

and team-work

• Being humble and

transparent

11

Brand Value

Porto Seguro is the 1st insurance brand in Brazil and the most searched insurer on the internet

Source: BrandZ Brasil Top 60 – Kantar & WPP (2018)

12

2018 2017

1º Beverage 8.263 8.146 1%

2º Financial Services 7.018 4.438 58%

3º Financial Services 6.198 4.359 42%

4º Beverage 4.478 4.385 2%

5º Media 4.318 4.123 5%

U$$ MillionBrand Segment Variation (%)

2018 2017

15ºInsurance &

Financial Services922 640 44%

19º Energy 788 719 10%

20º Retail 768 442 74%

21º Mining 767 396 94%

25º Financial Services 634 730 -13%

Segment Variation (%)U$$ Million

Brand

1º 22% 2º 9% 3º 5% 4º 4%

Top Most Valuable Brands in Brazil

Most Popular Web Insurers - 2017

The only carrier in Brazil that offers different value proposition throughout three brands -

specific products for distinct customer´s needs and preferences …

Auto Insurance

Besides the auto insurance,

offers several additional

services to vehicles,

residences and people

Auto Premium

Product focused on

luxury cars with exclusive

services and special

benefits (e.g. concierge)

Auto MulherExclusive services

and benefits for

women

Auto JovemUse of telematics for

young people (between

18 and 24 years)

Auto SeniorFocused on

customers over 60

years of age

Azul Seguros

Auto InsuranceAuto insurance with

basic coverage

Itaú Seguros

Auto Insurance

Mostly offered to Itaú

clients13

Brand Segmentation in Auto Insurance

Porto Seguro

Traditional Products

… in addition, it enables us to enlarge insurance penetration – the affordable products already

represent 10% of our insured fleet

14

Azul Leve

Itaú Auto Roubo

Azul Master

Porto Seguro Moto

✓ 540k insured vehicles (+17% vs. 1S17)

✓ Loss Ratio below 50%

✓ Coverage flexibility (Theft, Collision, Third Party)

✓ Payment flexibility (80% of Azul Leve clients pay

in 10 instalments)

✓ Low cost products

✓ Untapped market and low product

cannibalization

Brand Segmentation in Auto Insurance

Affordable Products

✓ 333 Porto – Client remembers Porto

Seguro in emergency situation

✓ Anhangabaú Flood – Porto Seguro

Service provider helps people and

saves non-insured flooded cars

✓ Baby in car – Our call center

operator suggests that the client

breaks the car window to save the

baby

✓ Calling the boss – agent calls the

client’s boss to explain that she would

not be able to work due to a car

accident

Customer Services

Top customer services nearby – going the extra mile to exceed customer expectations

✓ Most beloved Brazilian brand in the

Auto Insurance category (Consumidor

Moderno Magazine)

✓ Most reliable Brazilian insurer (IBOPE +

Seleções Magazine)

15

✓ Most remembered brand by costumers

in the Insurance category (Top of Mind

Premium)

✓ 1st place in the Satisfaction Ranking of

Auto and Homeowner Insurance (Estado

de São Paulo – Journal)

Awards Received in 2017 Services Stories

89 8879

70 65

41

14

2 26 25

6

10

5

9 10 155

29

49

81

USA Italy Germany Brazil Spain France UK

Brokers+Agents Bank Channel Alternative Channel¹

Channel Distribution by Country

(Life and Non-Life Products, %

premiums – 2015)

Our broker engagement makes the difference to foster growth - Independent brokers dominate

Auto, P&C and Health segments in Brazil whilst Internet is still beside the point

- “Open doors” policy

- Monthly meetings with Porto Seguro leaders (CEO, officers and

managers) and nationwide brokers

- Operations support (mobile, website development, advertisement and

training)

- Business office room (used by 30% of brokers)

- Brokers Portal that integrates information, sales and auto service

- PortoServ (polices renewal services available for brokers)

¹ Sales by Internet, phone, e-mail and commercial partnersSource: McKinsey Research / Porto Seguro

Participation of brokers on sales in Brazil

Auto80%

P&C75%

Health93%

Brokers in Porto Seguro

Key Relationship Elements

High satisfaction

rates about Porto

Seguro

Represent over

90% of our sales

force

16

Broker Assistance

Entrepreneurship and Innovation

- 1982: Anti-theft devices (tracking)

- 1984 Anti-theft system (“vacina”)

- 1985: Launch of 24h Call Center

- 1987: Brake Light

- 1994: Kit lanche (Snacks for Clients)

- 1997: Porto Seguro Residence Services

- 2001: Auto Jovem

- 2003: Launch of 24h Automotive Center

- 2004: Porto Palm (Previous Inspection);

333-PORTO Campaign

- 2007: Launch of Porto Seguro Credit

Card (loyalty program)

- 2008: Help/Assistance by Bike

-2016: Affordable Products (auto

insurance); Porto Oxigênio (Business

Accelerator)

Timeline – Innovative Solutions

Innovative developments have been generating a sustainable competitive edge and higher

clients retention ratio

1981----------------------------1990 1991----------------------------2000 2001----------------------------2010 2011-----------------------------2018

17

Sophisticated Risk Selection and Pricing

One of the lowest loss ratio in the market, bolstered by a sophisticated risk selection and pricing

discipline

Driver Profile

Accurate risk analysis

questionnaire

Telemetry

Customer behavior analysis

Automotive Material Parts

Biggest Brazilian automotive

parts purchaser

Track DeviceHigher recovery rates of stolen cars

(500 thousand traced vehicles)

Claims Inspection

Proprietary budget and risk

analysis system

Exclusive Service Providers

Fist-rate quality service and

assistance on claims inspection

Auto

Porto Seguro: 57.2%

(-9.4 p.p.)

Market (ex Porto): 66.6%

P&C

Porto Seguro: 31.9%

(-5.6 p.p.)

Market (ex Porto): 37.5%

Landlord Protection

Porto Seguro: 27.4%

(-10.3 p.p.)

Market (ex Porto): 37.7%

Loss RatioPorto vs. Market (2017)

Health

Porto Seguro: 79.3%

(-4.7 p.p.)

Market: 84.0%

Source: Susep/ANS

Au

to C

laim

Pro

ces

s

18

Telematics contribute to improve underwriting and create new businesses

Porto Seguro Telematics

Auto Jovem

Porto Seguro has launched an

initiative to stimulate Young

Drivers to drive safely through a

“Gamification” Program

Safe Driving Program Tracking Device

19

New Business Opportunities Operational Enhancements

Better recovery ratio than police

force

Driving Behavior Control

Download app and register

Drive safely and earn points

Do the online course “Driving Safely”

Get up to 35% discount according to

your score

Win a prize if you are in the top 10

ranking Tting

The integrated business model goes beyond insurance, raising both clients and brokers

retention rate, leveraging cross–selling and enhancing profitability

Cross-Selling

Sales expansion of complementary products: Auto + Credit Card; Auto + Homeowner; Credit

Card +Theft Insurance

Usage of the power brand to launch innovative products and tap into new market niches:

Health for Pet, Carro Fácil, Porto Faz, etc..

Profitability

Business risk reduction: know-how of the insured clients base (Credit Card , Financing, Landlord

Rent Guarantee insurance)

Scale gains through synergetic (interconnected) products : Costs saving through the acquisition

of car parts from Porto Renova

Retention

Focus on long term relationship: High service level based on “personal touch” and differentiated

loyalty programs that offer price discounts on the insurance policies

Segmented Solutions (services, prices and specific groups): Auto Jovem, Auto Mulher, Itaú

Roubo, Azul Leve, etc.

Additional offers for Brokers: focus on advisory, new sales opportunities and additional income

Relations between products

Integrated Business Model

• 2,1 million clients

• R$ 6 BI Credit Portfolio

• NPL below market average

• Higher retention rate on Auto

Insurance

Examples Key examples

• Auto + Homeowner insurance

• More than 1 million clients

20

3. Results and Progress

61%54%

10%14%

7% 8%

8% 7%

4% 4%

10% 12%

2013 9M18

We are maintaining our competitiveness in the Auto segment and continuing to expand our

participation in other business lines

Business Growth

7,78,6 9,1 9,4 9,6

7,4

1,21,6

1,8 2,0 2,2

1,8

0,9

1,11,3 1,3

1,4

1,11,0

1,11,2

1,21,3

1,00,5

0,50,6 0,7

0,8

0,61,3

1,51,7

1,71,6

1,6

2013 2014 2015 2016 2017 9M18

Porto Seguro by LOB* (R$ Billion) Porto Seguro Break Down * (%)

CAGR: 5%

12.7

14.415.5 16.2

13,5

CAGR: 12%

CAGR: 7%

CAGR: 14%

CAGR: 6%

CAGR: 16%

Auto Financial and Service Businesses P&C Life Other InsuranceHealth

CAGR: 8%

22

17.0

* Premiums written and revenues of financial and services businesses

CAGR 2013 > 2017

26.0% 26.3% 26.6% 27.4%28.7%

27.6%

2012 2013 2014 2015 2016 2017

0.9% 1.0%1.8% 1.9% 2.3% 2.5%

1.3% 1.6% 1.9% 1.9% 2.1% 2.4%

4.0% 4.1% 3.7% 3.3% 3.1% 3.2%

7.7% 8.1% 8.3%9.7% 10.2% 10.5%

Credit Card (Revenues)

Market share increased in our key products, especially in higher margin and lower penetration

Source: Susep / Sincor / CardMonitor

Auto P&C Life Health

Market Share – Main Products

Market Share Evolution

23

106.9%

103.9%

101.7%

93.8%

94.2%

98.6%

98.5%

96.2%

99.3% 99.0%

96.0%

96.5%

96.5%

99.1%

96.9%

92.4%

Insurance Operational Results

*CDI – Interbank deposit certificate, Source: CETIP

% Average CDI

% Combined Ratio

% Amplified Combined

Ratio

90,2%

91,4%

89,0%

81,4%

83,5%

89,8%

90,0%

88,5%

90,6%

90,3%

92,1%

90,1%

89,6%

91,8%

91,7%

87,5%23,3%

16,2%

19,0%

15,0%

11,8%

12,4%

9,9%

9,7%

11,6%

8,4% 8,1%

10,8%

13,2%14,0%

9,9%

6,5%

Porto Seguro Operational Performance vs. Interest Rates (%)

Stable profitability throughout challenging economic environments, even with the falling interest

rates

24

Porto Seguro’s Performance x Market

Auto Insurance

Market Loss Ratio Market Premiums and

Loss Ratio Variation(vs. same quarter of previous year)

64.1% 61.9% 65.2% 64.0% 61.1%

2014 2015 2016 2017 9M18

Average Loss Ratio 2014 - 2017: 63.8%

Loss RatioPorto x Market¹

26.6% 27.4% 28.7% 27.6% 27.6%

2014 2015 2016 2017 9M18

Porto Seguro Market Share

Porto Seguro has leveled up the difference from 9 p.p. to 12 p.p. compared to the market

average, and furthermore preserving its market share (2014 x 2018)

6.1%

5.4%

7.3% 7.2%

5.6%

4.1%

1.9%

1.6%

-0.2%

-2.0%

-3.9%

-3.0%

-4.9%

-3.3%

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18

Var. Premiums (%) Var. Loss Ratio (p.p.)

7.7%

9.2% 8.9%

10.2%

12.6%

8.8%

10.2%9.4%

9.4%

11.6%

2014 2015 2016 2017 9M18

vs. Top 3 vs. MarketSource: SUSEP

¹ Ex Porto Seguro 25

Insurance Expenses

Investments made in technology have shown its worth and led to a significant reduction in

expenses

Expenses Ratio¹ – Porto Seguro

¹General and Administrative Expenses (Excluding profit sharing) + Operational Expenses

PS: As of 2018, adjustments were made in our financial statements as a result of the Initial Hiring Costs, which are now recorded as Deferred Acquisition Costs (DAC), following the same appropriation system of the results

according to the term and risk. This regulation does not affect the Combined Ratio, representing just adjustments between accounts . However, adjustments were made in the numbers of the Press Release 2018 (pro forma) to

maintain the same basis of comparison.

19,7% 19,6%20,0% 19,3% 19,1%

16,9%

2013 2014 2015 2016 2017 9M18

26

*CDI – Interbank Deposit Certificate

Remarkable progress in our financial outcome is due to our active portfolio management and

long-term strategic view - the returns reached 105% of CDI on average, since 2014

¹ Futures exposures included.

Allocation¹ (ex-Pension Funds)Annual Performance

Revenue from Investments Assets(R$ Million)

Net Asset Value(R$ Billion)

Financial Investments Results

27

10,4%12,3%

14,7%

10,8%

6,0%

108%

93%

105% 103%

129%96%

93%

105% 109%124%

2014 2015 2016 2017 9M18

Nominal yield (ex-pension funds)

% of CDI (pension funds included)

% of CDI (ex-pension funds)

27%

60%53%

65%

44%

31%

3% 12%

7%

7%

24%28% 25%

22%

44%

15%7% 7% 4% 3%

2,8% 1,7% 3,4% 2,7% 2,5%

2014 2015 2016 2017 9M18

Equities

CorporateBonds

Inflation-LinkedBonds (Tips)

Fixed Income

Floating RateNotes

158224 195

142 150

7

2525

18 3561

114101

6288

2014 2015 2016 2017 9M18

Insurance Others Pension Funds

226

321363

222

273

6,6 7 7,5 8,7 9,5

2,7 3,23,9

4,64,9

2014 2015 2016 2017 9M18

Pension Funds Other Assets

9,311,110,2

13,314,4

578 734 896 793 974 849

711 883

1,009 923

1,108 931

16.5%17.2%

18.6%

15.5%

15.1%18.9%

21.4%22.7% 24.7%

17.4% 16.2%

24.6%

133 149

113 130

135 82

2013 2014 2015 2016 2017 9M18

Total Net Earnings (R$ MM)

Non-Insurance Business Net Earnings (R$ MM)

Insurance Business Net Earnings (R$ MM)

ROAE %

ROAE % (Ex. Surplus Capital)

50.0% 60.0% 50.0% 35.0% 35.7% 40.0%

4.5%

8.8%

4.4%

3.7% 3.4% 4.6%

2012 2013 2014 2015 2016 2017

Payout Dividend Yield

Our balance sheet achieved solid results - the average ROAE¹ (ex surplus capital) has climbed

up to 20.5% in the last 5 years

Profitability and Financial Strengths

Payout and Dividend Yield

Average Growth – 5 years

2012 > 2017

Multiples

(09/282018)

15.4

Price Earnings

2.6

Price Book

Capitalization (9M18)

2.4 Billion

Insurance

24%

Financial

7%8%

Recurring Net Income Total Revenues

Above Minimum

Requirement

Porto Seguro Net Earnings and Profitability*(Recurring)

28%Above Minimum

Requirement

¹ Without excess of capital and considering an investment return of 100% of CDI

28

Solvency Ratio Surplus Capital

CAGR

2013 > 2017

CAGR: 12%

CAGR: 0.3%

CAGR: 14%

Market Cap

19

Since IPO, our stock value has more than tripled Ibovespa and surpassed main Brazilian

insurance companies and banks in the last five years

Stock Variation

+99%

+76%

-2%

+50%

-1%

2013 2014 2015 2016 2017 Sep-18

Porto Seguro Sulamérica B.B. Seguridade Itaú Bradesco

Porto Seguro vs. Peers Stock Variation

29

PSSA3 IBOVESPA

751% 230%

Historical Variation* PSSA3 x Ibov

*From November 2004 (IPO) to September, 2018. Source: Porto Seguro

4.Forward-Looking

Relentless focus on developments to increase our competitive advantages and seize market

opportunities

Portfolio diversification

and cross-selling

Opportunities and Challenges

Source: Porto Seguro

Acceleration in

digitalization

Expand in insurance

industry penetration

Increase operational and

capital efficiency

Exploring start-up

companies

New Auto positioning

implementation model and

nationwide-expansion

31

Insurance Penetration by Country (2017)

Insurance Industry Penetration

The Brazilian insurance penetration rate is growing, but relatively low compared to developed

(and some emerging) economies

Brazilian Insurance Penetration by Product

2006

2.8%

Chile4.9%

USA

7.1%

Canada7.2%

Spain5.4%

Italy

8.3%

France

9.0%

UK

9.6%

Germany

6.0%

South Africa

13.8%

China4.6%

Japan

8.6%

Australia

5.8%

30%25%

12% 10% 10%6%

Insurance Penetration- Brazil *

2017

4.0%

Market Premiums Growth CAGR (2007 - 2017)

Pension 15%

Dental 12%

Homeowner 13%

Life 11%

Health 13%

Auto 10%

Total Market 12%

*Overall written premiums as % of GDP, excluding Capitalization and Health Medical Operator segments

Source: Swiss RE

Top Insurance Products Development

32

The auto insurance market remained resilient during the crisis - the current car sales rebound will

be helpful for the sector

Industry Insured Fleet and Auto Premiums

Source: Susep; Autoseg Susep; AnfaveaPorto Seguro Estimatives for Insured Fleet (2017)

Main Components for Growth - Auto Insurance Industry

Brand New Vehicle Sales

and Insured Fleet Aging

15.9 16.8 17.1 16.8 17.8 18.0

24.8

29.432.4 33.3 32.6

34.7

2012 2013 2014 2015 2016 2017e

Insured Fleet (Million)* Auto Written Premiums (R$ Billion)

3.6 3.63.3

2.5

2.02.2

3.5 3.53.7

3.9

4.44.7

2012 2013 2014 2015 2016 2017e

New Brand Vehicle Sales (Million)

Insured Fleet Average Age* (Years)

33

Competitive landscape and interest rates are key drivers to understand market behavior

Industry Auto Loss Ratio vs. Interest Rates¹

Source: SUSEP / CETIP ¹Annual average Loss Ratio and CDI for each 3 years period

70%

71%

64%

65%

62%

64%

18%19%

13%

10%

9%

12%

00-02 03-05 06-08 09-11 12-14 15-17

Loss Ratio Interest Rates

34

Loss Ratio Market Behavior - Auto Insurance Industry

National Footprint – Auto Insurance

Source: Susep

NORTH

NORTHEAST

MID WEST

SOUTHEAST

SOUTH

2007 2017 Var. p.p.

14.5% 16.1% +1.6 p.p.

2007 2017 Var. p.p.

10.7% 20.3% +9.6 p.p.

2007 2017 Var. p.p.

18.7% 27.6% +8.9 p.p.BRAZIL

2007 2017 Var. p.p.

25.0% 34.6% +9.6 p.p.

2007 2017 Var. p.p.

3.9% 14.2% +10.3 p.p.

2007 2017 Var. p.p.

9.7% 17.3% +7.6 p.p.

Regional Market Share – Porto Seguro (Consolidated)

35

Porto Seguro is already amongst the top auto insurance positions in all regions of the country –

however, there is still growth potential, especially out of São Paulo

1st 2nd

2nd

1st

1st

1st

Auto Insurance Development Model

The new model focuses on increasing the profitability and growth. All brands moved from fixed

towards flexible pricing - Meanwhile, Itaú is now co-branded (Porto or Azul)

New Business Model – Auto Insurance

36

Service

level

Full

Services

(car, home,

people)

Basic

Services

(car)

100% Porto Seguro

(High-End)

85%

No changes

Itaú

(Bank Channel)

Client´s

shares of

wallet

75%

Product

BasketPricing

Brand

Positioning

New OldNew Old

Porto

Azul

Itaú

New Old

Intermediate

Services

(Car/Home)

Full

Services

(car,home,

people)

Basic

Services

(car)

Client´s

shares of

wallet

Azul or

Itaú

Porto or

Itaú

New Old

Azul

(Lean)

Porto

(Complex)

Lean

Complex

Intermediate

Platform

Anchor

Pri

ce

Azul

(Low End)

2 client’s

choice

3 client’s

choice

87% 78% 58% 62% 114% 28%

Business Diversification

Various initiatives are boosting the growth of higher profitable products

▪ Cross-selling leverage (e.g. Credit Card + Auto)

▪ Up-selling (e.g.. Auto + Homeowner)

▪ Portoserv (e.g. selling cards on behalf of the brokers)

▪ Product specialists support for brokers (e.g. Life Product)

▪ Internet sales (especially for low average price segments – e.g. travel insurance and homeowner)

¹ Loss Ratio + Commission ² Poll Financing for Auto and Houses 37Expenses¹ Growth

7%5%

12%14%

11%

15%

ROAE

Diversification Initiatives

Operational Results by Business Lines

Digital Transformation

Capitalization in digital technology will enhance customer experience, create valuable support

for brokers and improve efficiency

Self-handling

Services

+ 1 Million of users

downloaded our APPs (Auto,

Health, Credit Card and

Consortium)

Chatbot

Innovation on Customer

Services (e.g. searching for

hospitals network, claims

status and payments follow-

up)

Broker’s program that works

especially on sales arising

from the internet, focusing

on new customers attraction

OnCorretor

Broker's digital inclusion

program to professionalize

the sales actions through

the internet

Multichannel

Health for Pet

Auto

Car tracking +

Insurance

Homeowner

Travel

Insurance

Motorcycle

38

Process Improvement Sales by Internet

(In the pipeline)

• The real estate usage was optimized

(ex. home office, call center and

~R$100 MM in properties offered for

sale)

Initiatives in 2018

• Capex reduction of 21% or 60

R$ MM (vs. 9M17)

• Extra dividends paid with a value

of R$ 500 MM in the 1Q18

Capital Base

• Reducing capital surplus from 47% to

42% from the adjusted shareholders

equity (vs. 9M17)

% Distribution of Dividends (Payout)

60.0%

50.0%

35.0% 35.7%40.0%

8.8%4.4% 3.7% 3.4% 4.6%

2013 2014 2015 2016 2017

Payout¹ Dividend Yield²

¹ Total Dividends Paid (Dividends + Net Interests on Capital) divided by Adjusted Net Income

² Dividend yield in relation to Stock Price (Total Dividends paid Divided by Stock Price on the last day in the period)

Increased dividend payments and thoughtful usage of our real estate have right-sized the

Company’s balance sheet

39

New Businesses

Businesses under Development

Source: Porto Seguro

Carro Fácil22 Million

around 2 thousand

Revenues

Active Contracts

+157% vs. 2016

H4Pet13 Million

20 thousand

Revenues

PETs

+127% vs. 2016

Porto Faz12 Million

27 thousand

Revenues

Services provided in 2017

+11% vs. 2016

Capturing opportunities and developing non-mature businesses

• Increase scale gains

• Optimize process

• Improve

communication and

positioning

• Optimize process

40

Initiatives

▪ Develop a sophisticated

digital delivery platform

▪ Innovate the process of

buying services

▪ Scale-up by cross-selling

Key Takeaways

❑ Under-penetration pave the way for a consistent and long-term growth

❑ Many business lines enable us to innovate, differentiate and excel (eg. Financial Services , Auto, etc..)

❑ Fluctuation in interest rates can be offset by improvements in operational results – long track-record of

successful execution

❑ Valuable brand, solid relationships and emphasis on customer-oriented services lead to superior

profitability

❑ The brokers/agents and new niches increase penetration, specially in non-mandatory insurance

markets – new distribution channels are complementary

❑ Digitalization provides unique customer experiences in the future – senior management priority

❑ There are operational efficiency gains to conquer in regards to process improvement, non-mature

businesses and right-sizing the capital base

41

The untapped market opportunities aligned with our initiatives to improve insurance products,

expand diversification and operational efficiency can lead to better profitability in the years to

come

Contact

Investor Relations Department

Alameda Barão de Piracicaba, 618

11th floor

Campos Elíseos

01216-010

São Paulo, SP, Brazil

Phone:

(55 11) 2393-7092

(55 11) 2393-7093

E-mail:

gri@portoseguro.com.br

www.portoseguro.com.br