Porto Seguro S.A. March 2007

Transcription

1 Porto Seguro S.A. March 2007

2 Porto Seguro Highlights Porto Seguro Highlights Beginning of activities Largest insurance group in Brazil Leader in auto insurance R$ billion Written Premiums in 2006 Direct employees Locations in Brazil 2

3 Corporate Structure Corporate Structure Rosag (1) Empreendimentos Porto Seguro (1) Empreendimentos Pares (1) Empreendimentos Board and Directors Free Float Free Float 12.4% 16.6% 33.3% 0.5% 37.2% Porto Seguro S.A. Porto Seguro S.A. 99.9% 99.9% Portopar DTVM CrediPorto 99.9% Promotora de Serviços PortoServ Promotora de Serviços 99.9% 99.9% 99.7% 99.9% 100% Porto Seguro Portoseg Porto Seguro Azul Proteção e Consórcio S.A. CFI Seguros Monitoramento 99.9% 99.9% 100% Porto Seguro Cia. de Seguros Porto Seguro Vida e Previdência Porto Seguro Saúde Porto Seguro Uruguai (1) Controlled by Jayme Garfinkel. 3

4 Nationwide Presence 130 locations in Brazil

5 Market Share Market Share Porto Seguro market participation is crescent throughout the years. Change in control Differentiation of auto insurance Innovative underwriting techniques Acquisition of Santander portfolio Acquisition of AXA Brazil Excluded VGBL. 5

6 Brazilian Insurance Ranking Brazilian Insurance Ranking The 7 largest insurance groups in Brazil are responsible for 60.2% market written premiums. 11.8% 11.3% 9.1% 8.4% 8.3% 7.1% 4.2% Bradesco Unibanco Porto Seguro Itaú Sul América Mapfre Tokio Marine Obs: Porto Seguro participation in March/2006: 8.5% Excluding VGBL and Health (quarterly information not available). Source: SUSEP. 6

7 Focus on Results Growth opportunities focusing on results. Geographical Expansion Cross- Selling Customer Relationship Risk Selection Broker Relationship Underwriting 7

8 Human Resources Excellent relationship with brokers Strong relationship with broker to maintain broker s preferences 20,000 brokers, 50% with active production: Marketing and operational support Constant training courses Fast procedures for commission payments Open doors policy Broad array of products Recognition prizes 8

9 Value Added Services Value Added Services Differentiate the company from competitors and captivate clients Car + Home Discount parking Installation of antitheft systems Emergency services monitored by GPS Loaner Car Free vehicle inspection Automotive centers for minor repairs Certificate of vehicle origin Free third brakelight installation 9

10 Products Broad portfolio to attend brokers and clients necessities. Auto Health Care Private Pension Consortium Financing Protection and Monitoring Life Other Property and Casualty Products Asset Management 10

11 Market Breakdown Porto Seguro and Market Specialized in Auto Insurance. December 2006 Information Porto Seguro Market 7.0% 1.7% 4.4% 5.4% Auto Health 12.7% 3.4% 30.4% Life 11.4% 16.0% P&C 65.5% Cargo Others 21.4% 20.7% Excluding VGBL Source: SUSEP. 11

12 Porto Seguro Breakdown Porto Seguro 1T07 Over 1,5 million vehicles insured. 1.4% 10.6% Auto Health 4.6% 5.1% life P&C 12.0% 66.2% Cargo Others Ex - VGBL. 12

13 Auto Insurance Market Share Nationwide leadership. 20.2% 14.7% 13.3% 7.2% 7.1% 6.5% 5.3% Porto Seguro Sul América Bradesco Mapfre Itaú Tokio Marine Hannover (HDI) Obs: Porto Seguro participation in March/2006: 17.1% Source: SUSEP. 13

14 Auto Insurance São Paulo and Rio de Janeiro Ranking Crescent participation in São Paulo and Rio de Janeiro. São Paulo Porto Seguro Bradesco Rio de Janeiro 19.2% 32.7% 32.3% Sul América + BB Veículos Itaú 26.3% 9.2% Mapfre 9.3% 7.3% 10.5% 8.4% 8.8% Tokio Marine AIG Unibanco 13.2% 22.8% Others Source: SUSEP. S.P: Porto Seguro participation in 2006/03: 30,0% R.J: Porto Seguro participation in 2006/03 : 19,0% 14

15 Auto Insurance Geographical distribution Growth opportunities to the other regions in the country, besides the Southeast. Regional Distribution as a % of Premiums. North Market: 2.1% Porto: 1.7% Northeast Market: 10.0% Porto: 7.1% Midwest Market: 7.0% Porto: 3.9% Southeast Market: 62.6% Porto: 83.1% South Market: 18.3% Porto: 4.2% 15

16 Auto Insurance Loss ratio Conservative Underwriting reflecting in the loss ratio. 76.6% 74.8% 64.2% 64.1% 62.8% 61.9% 52.8% Tokio Marine Bradesco Itaú Mercado Mapfre Sul América Porto Seguro Obs: Porto Seguro loss ratio in March/2006: 53.6% Source: SUSEP. 16

17 Health Insurance Market Share 12.0% of Company written premiums in 1Q07 Approximately 330,100 insured lives with focus on corporate segment. Focus on prevention of diseases to reduce assistance costs Information 2.8% 2.9% 6.5% 6.8% 43.0% Bradesco Sulamérica Porto Seguro AGF 38.0% Marítima Others Source: ANS 17

18 Health Insurance Loss Ratio Loss Ratio of 67.9% in 1Q Information 78.1% 86.3% 87.2% 75.1% 90.0% 71.3% 72.2% 84.0% Source: ANS Porto Seguro Market 18

19 Other Segments Highlights Life Private Pension P & C Focus on corporate segment. 5.1% of total written premiums. Approximately 1,600 thousand lives insured. Accumulated reserves of R$ million. Approximately 95,000 contributors. Portfolio of 383,000 items in 6 main product lines. 4.6% of total written premiums. 19

20 Other Segments Highlights Porto Seguro Consortiums Portoseg Financing Portopar Asset Management R$883 million under management. Over 39,000 clients. Specialized in real estate fund pooling. Vehicle and PC financing, consumer credit, payroll loans. Portfolio of approximately R$ 142 million, 79% financing and 21% loans. Surveillance and Cargo Monitoring Approximately 10,000 clients. 20

21 Selected Data Porto Seguro S.A. Operational Efficiency (R$ million) 1Q07 1Q06 Variation Written Premiums (1) 1, % Earned Premiums % Financial Result (8.9%) Ratios % % p.p. G&A Commission Loss Ratio (3.2) Combined Ratio (1.4) Profitability (R$ million) 1Q07 1Q06 Variation Total Revenue 1, , % Shareholder s Equity 1, , % Net Earnings % ROAE% (7.9) p.p. (1) Excluding RVNE and VGBL. 21

22 Selected Data Porto Seguro Cia de Seguros Gerais Operational Efficiency (R$ million) 1Q07 1Q06 Variation Written Premiums (1) % Auto % Other % Earned Premiums % Financial Result (18.4%) Ratios % % p.p G&A (0.4) Commission Loss Ratio (3.8) Combined Ratio (3.2) Profitability (R$ million) 1Q07 1Q06 Variation Total Revenue % Shareholder s Equity 1, , % Net Earnings (2.3%) ROAE% (7.9) p.p. (1) Excluding RVNE. 22

23 Selected Data Porto Seguro Saúde (Health) Operational Efficiency (R$ million) 1Q07 1Q06 Variation Written Premiums (19.1%) Earned Premiums (18.4%) Financial Result (25.0%) Ratios % % p.p. G&A Commission Loss Ratio Combined Ratio Profitability (R$ million) 1Q07 1Q06 Variation Total Revenue (19.5%) Shareholder s Equity % Net Earnings (51.2%) ROAE% (32.8) p.p. 23

24 Selected Data Azul Seguros Operational Efficiency (R$ million) 1Q07 1Q06 Variation Written Premiums (1) % Azul Seguros Auto % Other % Earned Premiums % Financial Result % G&A (3.3) Commission Loss Ratio (3.8) Combined Ratio (6.5) Total Revenue % Shareholder s Equity % Net Earnings % ROAE% p.p. (1) Excluding RVNE. Ratios % % p.p. Profitability (R$ million) 1Q07 1Q06 Variation 24

25 Selected Data Life and Pension Life and Pension (R$ m illion) 1Q07 1Q06 Variation Contributions % Redemptions (10.6%) Written Premiums % Redemptions and Claims % Financial Result 6.9 (1.3) (630.8%) Net Earnings 2.9 (3.4) (185.3%) Shareholder s Equity % ROAE% 9.3 (12,7) 22.0 p.p. 25

26 Selected Data Surveillance and Monitoring Surveillance and Monitoring (R$ m illion) 1Q07 1Q06 Variation Revenues % Shareholder s Equity % Net Earnings (75.0%) ROAE% (55.9) p.p. 26

27 Selected Data Financial Subsidiaries Porto Seguro Consortiums (R$ m illion) 1Q07 1Q06 Variation Operational Revenue % Shareholder s Equity % Net Earnings % ROAE% (7.1) p.p. Portoseg Financing (R$ m illion) 1Q07 1Q06 Variation Operational Revenue % Shareholder s Equity % Net Earnings % ROAE% (1.7) p.p. Portopar DTVM (R$ m illion) 1Q07 1Q06 Variation Operational Revenue % Shareholder s Equity % Net Earnings % ROAE% (9.7) p.p. 27

28 Asset Management Model Asset Management Model Investment Strategy Profitability targets defined Macro economic scenarios Financial opportunity Analyses/ simulations Asset and liability allocation policy Risk Analysis Macro-allocation (asset class) Investment Manager Selection Result Analysis (Quantitative) (by asset class) Due dilligence (Qualitative) Market Timing and specific asset selection (i.e. stocks) In-house management Third party management Result Monitoring Performance Risk exposure Consistency/ excellence in management Validation/ strategy adjustment/ specific allocation 28

29 Investment Results Investment Results Total Assets 4.6% 114% Investment Portfolio 114% of CDI 4.6% 1Q2006 R$ 3.17 bi R$ 3.81 bi Result Evolution 2.8% 78% 3.7% 105% 106% of CDI 3.2% 1Q % 150% 3.2% 106% Portfolio Breakdown Asset Class Equity ("long only") Private Bonds IGP-M Inflation linked bonds IPCA - Inflation linked bonds Floating Government Bonds (LFT) Floating Government Bonds (LTN) In-house (Portopar) Third party (Open Funds) 2% 6% 6% 7% 13% 13% 18% 27% 25% 17% 34% 32% 1º Trim Trim Q2006 1Q2007 Management Breakdown 8% 11% 28% 34% 1Q06 2Q06 3Q06 4Q06 1Q07 Exclusive Funds 64% 55% Reserves R$ 1.6 bi R$ 1.7 bi R$ 1.7 bi R$ 1.8 bi R$ 1.8 bi Free Assets R$ 1.6 bi R$ 1.5 bi R$ 1.7 bi R$ 1.9 bi ¹ Ex- PGBL and VGBL R$ 2.0 bi 1Q06 1Q07 29

30 CAPEX R$ 120 million estimated investments from 2007 to 2010, mainly toward to: Constriction of office building in the headquarters to meet the growth strategy; New installations of 24 hours Call Center; Construction of data processing center building. 30

31 Social Responsibility Social Responsibility Main programs in process: Social role Company- School partnership Associação Crecer Sempre Casa Campos Elíseos Melhor Projeto Guri Cidade Portinho Seguro 31

32 Contact Investor Relations Alameda Ribeiro da Silva, st floor Campos Elíseos São Paulo, SP Phone: (+55 11) (+55 11) [email protected] 32