NAME Inversiones La Construcción S.A. TAX ID 94,139,000-5

Transcription

1

2 NAME Inversiones La Construcción S.A. TAX ID 94,139,000-5 TYPE OF ENTITY Open stock corporation registered under the Superintendence of Securities and Insurance (SVS) ADDRESS Marchant Pereira 10, Floor 17, Providencia, Santiago Chile. PHONE (56-2) WEB SITE

3 CONTENTS 2013 / 1 2 LETTER FROM THE PRESIDENT 6 OWNERSHIP STRUCTURE 8 BOARD OF DIRECTORS AND ADMINISTRATION 12 BUSINESS PROFILE 20 HISTORIC OVERVIEW 24 SOCIAL RESPONSIBILITY MANAGEMENT RESULTS 30 SUBSIDIARIES 32 SOCIAL SECURITY SECTOR 54 HEALTH SECTOR 62 OTHER SECTORS 70 CORPORATE AFFAIRS 86 INFORMATION ON RELEVANT FACTS 89 IDENTIFICATION OF SUBSIDIARIES AND ASSOCIATES 114 CONSOLIDATED FINANCIAL STATEMENTS (*) 144 ANNUAL REPORT SIGNING (*) The editorial content of this annual report and the Explanatory Analysis do not include notes to the Consolidated Financial Statements. The full version appears in the USB memory stick attached and on our website, which are an integral part of the Annual Report.

4 ANNUAL REPORT ILC 2013

5 2 / 3 LETTER FROM THE 01PRESIDENT DEAR SHAREHOLDERS: I am pleased to present the 2013 Annual Report, which is for our shareholders, customers and employees a record of the milestones and achievements accomplished during 2013, which are aligned to our group s objective of becoming a Chilean benchmark for the Pension, Health and Insurance industries, always acting under the distinctive ethical framework of our holding company, the Chilean Chamber of Construction (CCHC). FOR OVER 30 YEARS, CCHC HAS DEVELOPED A SUCCESSFUL BUSINESS THROUGH ILC, WHICH EVENTUALLY RESULTED IN THE OPENING THE LARGEST STOCK EXCHANGE OF CHILEAN HISTORY. CChC has developed a successful business through ILC for over 30 years, which in 2012 finally resulted in the opening of the largest stock exchange in Chilean history, where we became known to the domestic and international stock market, while continuously seeking to raise corporate governance standards, and were ultimately acknowledged by a large number of local and foreign investors who have kept believing in us was marked by new milestones: firstly, it is worth noting the association between Desarrollos Educacionales and the British group, Cógnita. The latter acquired 51% of the company, therefore infusing the involved schools with the rich knowledge acquired by its international experience, further raising the quality standards in our network. Moreover, our international expansion phase began this year. AFP Habitat started operations in Peru, after winning a tender among all new job market entrants for a period of two years, fulfilling a long-held aspiration. Also, our subsidiary company of life insurance, Vida Cámara, was awarded two of the seven fractions of the tender of the Disability Insurance in Peru. Finally, closing the year 2013, ILC acquired 67% of the holding Corp Group Vida Chile S.A., parent company of the companies Seguros de Vida CorpSeguros S.A. and CorpVida S.A. This operation allowed us to strengthen our presence in the insurance industry and we became one of the major players in the life insurance industry, especially in the area of annuities. In terms of results, ILC reached in 2013 a profit of $ million, surpassing the previous year by 1.65%, which is explained by the good operating performance of affiliates AFP Habitat, Isapre Consalud, Red Salud and the income generated by the acquisition of Corp Group Vida Chile S.A. This good scenario is product of the favorable domestic economic performance, which translates into positive employment rates, increase in real remuneration and greater formalization of the work force. In regard to our affiliates, AFP Habitat continues to position itself as one of the leading national private pension funds, recognized by the American Consultant Fund Pro in 2013 with the Platinum Performance Award in the category Private Pension Fund of the Year, given the positive performance of its five funds in the last three years. In addition, funds C, D and E were acknowledged. The company has maintained second place in the market share, in contributors and managed assets, which reflects a quality of service and care towards affiliates that the company is committed to improving every year. It is worth noting at this point that the Service Management department was implemented, which reports directly to the General Manager. Efforts made in 2013 were reflected in the net profit of $ 79,473 for Habitat, outperforming

6 2012 by 6.5%, despite the reduction in commissions performed mid last year. Regarding Isapre Consalud, this year was a period with significant challenges, mainly given by sustained rise in costs and a regulatory landscape with few definitions. It must be recalled that from late 2012 there has been a bill in Congress that proposes the creation of a common and compulsory Guaranteed Health Plan, for all insured by Chilean Health Plans, which has been widely discussed, yet no consensus reached. However, we remain confident in the management of this subsidiary, which for thirty years has been able to face changes and challenges of various kinds. Meanwhile, Empresas Red Salud, parent of our health institutions, stood out for its operational progress and was positively impacted by Clinica Bicentenario which, despite being in operation for less than three years, has had a positive EBITDA from April Along the same lines, we can note the favorable performance of Avansalud Clinic, which achieved EBITDA margins near 17% throughout the year. In terms of investment, we have continued with the plan that will allow us to count on a new building of nearly 80 beds in Tabancura Clinic, and a project that seeks to expand Bicentenario Clinic by approximately 40 beds. AS PREVIOUSLY NOTED, THE YEAR 2013 HAS BEEN A BUSY PERIOD WITH MAJOR CHANGES AND DEVELOPMENTS WE ARE SURE WILL HAVE A POSITIVE IMPACT ON THE FUTURE. which will govern for 15 months from October Corp Group Vida Chile S.A., a company acquired in November 2013, parent of CorpVida and CorpSeguros, produced a $ 1,735 million profit for ILC. This acquisition was a significant milestone, as it allowed us to position ourselves as one of the major players in the insurance industry. I would not want to miss this opportunity to welcome all our new colleagues. We are confident that this business will continue to develop diligently, steadily contributing both to our country as our party. Finally, our information technologies company, iconstruye, is developing major initiatives in the field of transactional platforms and technology integration services in various sectors that we believe will positively impact their future performance. The year 2013 recorded a net profit of $516 million, counting with a wide portfolio of clients in the property and construction sectors. As said, the year 2013 has been a busy period with major changes and developments that will surely have a positive impact on the future. This allows us to look forward to 2014 with the highest expectations, so as to generate the expected value for each of our shareholders. Thus in 2013, our Chilean Health Plan, Consalud, achieved a utility of $8,000 million as a result of an advance of 13.4% in revenue, explained by the growth of the contributor base, as well as the rising GES prices and real remuneration of our contributors. This progress in revenues was offset by a 16.4% increase in cost. Regarding results, Empresas Red Salud reported a net income of $ 3,794 million for ILC, exceeding the figures reported in 2012 by 60.6%. In relation to our insurance companies, the positive evolution of Vida Cámara is valuable in the business of Complementary Health Insurances, which in December 2013 reached 220,535 beneficiaries, reflecting a significant growth, considering that said business started in early Moreover, it is important to highlight the start of operations of its subsidiary in Peru, which through a competitive bidding won two of the seven fractions of the Disability Insurance, As said, the year 2013 has been a busy period with major changes and developments that will surely have a positive impact on the future. This allows us to look forward to 2014 with the highest expectations, so as to generate the expected value for each of our shareholders. I cannot not overemphasize the important work accomplished and the huge commitment shown by our Board of Directors, all of our subsidiaries and more than 12,000 employees who contribute daily to the growth of ILC. Let me reiterate, on behalf of the Board, our appreciation for the support and confidence in our management. DANIEL HURTADO PAROT PRESIDENT ANNUAL REPORT ILC 2013

7 4 / 5

8 OWNERSHIP 02STRUCTURE CCHC IS A TRADE UNION, A PRIVATE ASSOCIATION, WHICH SINCE ITS INCEPTION HAS SOUGHT TO CONTRIBUTE THROUGH THE PRIVATE INITIATIVE, TO PROMOTE PROGRESS AND FAIRNESS TOWARDS PEOPLE AND THEIR WELLBEING THROUGH THE DEVELOPMENT AND IMPROVEMENT OF THE CONSTRUCTION SECTOR, WITHIN A STRICT ETHICAL FRAMEWORK. MAIN SHAREHOLDERS At December 31, 2013, the paid-in capital is divided into 100,000,000 shares, distributed in different proportions among 217 shareholders. The 12 largest shareholders at year-end 2013 are presented below: OWNERSHIP AND CONTROL OF THE COMPANY TAXPAYER ID PERCENTAGE OF INTEREST Cámara Chile de la Construcción A.G. 81,458,500-K 67.00% Banco de Chile on account of non-resident third parties 97,004, % Banco Santander on account of foreign investors 97,036,000-K 5.72% Banco Itaú on account of foreign investors 76,645,030-K 3.72% BICE Inversiones Corredores de Bolsa S.A. 79,532, % IM Trust S.A. Stockbroker 96,489, % BCI Corredor de Bolsa S.A. 96,519, % BTG Pactual Chile S.A. Stockbroker 84,177, % Moneda S.A. Infrastructure Financing Authority for Pioneer Investment Fund 96,684, % Larraín Vial S.A. Stockbroker 80,537, % Consorcio Corredor de Bolsa S.A. 96,772, % Others 6.41% TOTAL 100% Inversiones La Construcción S.A. (Hereinafter ILC or the Company or Firm ) is controlled by the Chilean Chamber of Construction A.G. (hereinafter the CChC or Camera ). In July 2012 the opening was made in the ILC stock exchange, where from a capital increase and sale of CChC equity participation, approximately 33% of the ownership was divided between domestic and foreign investors. At December 2013, CChC controls ILC with 67% ownership, while 17.3% is held by private investors and Mutual Funds in Chile and 15.7% are in custody on behalf of foreign investors. ANNUAL REPORT ILC 2013

9 6 / 7

10 BOARD OF DIRECTORS 03AND ADMINISTRATION At December 2013, the Board of ILC is composed of nine members, elected annually by the Annual Shareholders Meeting of the Company. The technical profile of the board is composed of the experience of businessmen and professionals in different areas, which complement each other s knowledge and skills. Following Article 50a of the Companies Act, an independent director was incorporated to the board in April 2013, and nine members were kept in the Board. Regarding the ILC subsidiaries, they are independently managed by their respective General Managers, who, in addition to the role of legal representatives, ensure compliance with the guidelines and controls established by their respective Boards. DIRECTOR DIRECTOR DIRECTOR VICE-CHAIRMAN ANNUAL REPORT ILC 2013 Paulo Bezanilla Saavedra Taxpayer ID: 7,060,451-5 Civil Engineer Pontificia Universidad Católica de Chile Appointment: May 2011 Ítalo Ozzano Cabezón Taxpayer ID: 9,082,624-7 Civil Engineer Universidad de Santiago MBA, in ISPER, Sao Paulo Appointment: April 2010 Alberto Etchegaray Aubry Taxpayer ID: 5,163,821-2 Civil Engineer Pontificia Universidad Católica de Chile Appointment: April 2010 Gastón Escala Aguirre Taxpayer ID: 6,539,200-3 Civil Engineer Pontificia Universidad Católica de Chile Appointment: August 2012

11 8 / 9 AT DECEMBER 2013 THE BOARD OF ILC IS COMPOSED OF NINE MEMBERS, ELECTED ANNUALLY BY THE ANNUAL SHAREHOLDERS MEETING OF THE COMPANY. CHAIRMAN INDEPENDENT DIRECTOR DIRECTOR DIRECTOR DIRECTOR Daniel Hurtado Parot Taxpayer ID: 7,010,350-8 Construction Engineer Pontificia Universidad Católica de Chile Appointment: August 2012 Juan Benavides Feliú Taxpayer ID: 5,633,221-9 Business Engineer Pontificia Universidad Católica de Chile Appointment: April 2013 Francisco Vial Bezanilla Taxpayer ID: 6,400,466-2 Civil Engineer Pontificia Universidad Católica de Chile Appointment: April 2010 Sergio Torretti Costa Taxpayer ID: 6,551,451-6 Entrepreneur Appointment: April 2010 Lorenzo Constans Gorri Taxpayer ID: 5,816,225-6 Construction Engineer Universidad de Santiago Appointment: September 2008

12 ADMINISTRATION CHIEF EXECUTIVE OFFICER Pablo González Figari Taxpayer ID: 9,611,943-7 Business Engineer Pontificia Universidad Católica de Chile MBA, University of Notre Dame, USA Joined ILC on December 1, 2008 CHIEF FINANCIAL OFFICER AND INVESTOR RELATION Ignacio González Recabarren Taxpayer ID: 13,235,095-7 Business Engineer Universidad de Chile MBA, IE Business School, Madrid, Spain Joined ILC on May 1, 2012 COMPTROLLER OFFICER Cristóbal Cruz Barros Taxpayer ID: 6,866,245-1 Business Engineer Universidad Adolfo Ibáñez Joined ILC in January 2013 and left in March 2014 CHIEF OF ACCOUNTING AND ADMINISTRATIONN OFFICER Robinson Peña Gaete Taxpayer ID: 9,184,681-0 Chartered Accountant Universidad Católica del Norte Joined ILC on September 1, 2010 DEPUTY MANAGER OF DEVELOPMENT Nicole Winkler Sotomayor Agricultural Engineer Mg. in Economy (c) Pontificia Universidad Católica de Chile Joined ILC on November 1, 2010 DEPUTY MANAGER OF MANAGEMENT CONTROL Germán Menéndez Romero Taxpayer ID: 13,433,543-2 Business Engineer y MBA Pontificia Universidad Católica de Chile Joined ILC on October 1, 2011 GENERAL ACCOUNTANT Juan Olguín Tenorio Taxpayer ID : 7,493,677-6 Chartered Accountant Universidad de Chile Joined ILC on February 1, 2011 HEAD OF INVESTOR RELATIONS María Paz Merino Pagola Taxpayer ID: 15,381,036-2 Business Engineer Mg. in Applied Macroeconomics Pontificia Universidad Católica de Chile Joined ILC on May 12, 2013 HEAD OF MANAGEMENT CONTROL Pablo Viviani Montalva Taxpayer ID: 15,643,636-4 Business Engineer Pontificia Universidad Católica de Chile Joined ILC on August 1, 2013 TREASURER Lorena Mardones Jara Taxpayer ID: 15,901,166-6 Chartered Accountant Universidad Andrés Bello Joined ILC on April 1, 2010 BOARD ADVISOR Luís Larraín Arroyo LEGAL ADVISORS PRIETO Y CÍA. ABOGADOS (LAWYERS) EXTERNAL ACCOUNTANTS ERNEST & YOUNG AUDITORES CONSULTORES LTDA. STAFF OF THE COMPANY 4 Managers 6 Professional executives and Technicians 5 Administrative personnel ANNUAL REPORT ILC 2013

13 10 / 11 FLOW CHART BOARD CHIEF EXECUTIVE OFFICER CHIEF FINANCIAL OFFICER AND INVESTOR RELATION CHIEF OF ACCOUNTING AND ADMINISTRATION OFFICER COMPTROLLER OFFICER HEAD OF INVESTOR RELATIONS GENERAL ACCOUNTANT DEPUTY MANAGER OF MANAGEMENT CONTROL DEPUTY MANAGER OF DEVELOPMENT TREASURER HEAD OF MANAGEMENT CONTROL

14 BUSINESS 04PROFILE OUR MISSION: WE SEEK TO IMPROVE THE QUALITY OF LIFE OF ALL CHILEANS, OFFERING EFFICIENT AND ACCESSIBLE SERVICES, PRIMARILY IN WELFARE AND HEALTH; FAVORING THE CREATION OF VALUE, EFFICIENCY AND SUSTAINABILITY. SOCIAL SECURITY SECTOR In the Social Security field, ILC holds a % stake in AFP Habitat, through companies Inversiones Previsionales Dos S.A. and Inversiones La Construcción Limitada. AFP Habitat participates in the pension industry, which is governed by the DL N managing pension funds related with the compulsory pension savings and voluntary savings, including voluntary pension savings account (APV) and voluntary savings account (CAV). It also provides pensions as programmed withdrawal pensions and temporary income. Moreover, from November 18, 2013, ILC incorporated Corp Group Vida Chile S.A. to the sector, which holds a 67 % stake and is the partner company of Compañías de Seguros de Vida CorpSeguros and CorpVida that focuses on Annuities and Life Insurance. In the area of Health and Life Insurance, ILC controls 99.9 % of Isapre Consalud, company founded in 1983 as a private health corporation created to provide medical care under the conditions laid down in the 1981 DFL 3 of the Ministry of Health. In addition, it controls 99.9 % of Compañía de Seguros Vida Cámara, which in late 2011 integrated a team of experts and professionals in the health insurance field, in order to expand its product portfolio in the complementary areas of health and life insurance, focusing on supplemental health Insurance, becoming a major player in this business from December HEALTH SECTOR In the health care provider field, ILC controls 89.9% of the ownership of Empresas Red Salud, which is itself one of the country s leading private inpatient and outpatient health providers. OTHER SECTORS These sectors include Education and Information Technology Services, through its participation in Nahuelcura de Machalí School and iconstruye respectively. Additionally, the Company keeps a financial investment portfolio of approximately $57,978 MM and real estate for lease, comprising a portfolio of approximately $15,600 MM; within these assets are land and office buildings. ANNUAL REPORT ILC 2013

15 12 / 13

16 CORPORATE STRUCTURE OF THE COMPANY 67% 89.99% 99.9% 99.9% 99.9% 99.9% RED SALUD ISAPRE CONSALUD CIA. SEGUROS VIDA CÁMARA INVESCO LIMITADA INPRESA % SERV. MÉDICOS TABANCURA 99.0% C. DIAGNÓSTICO CLÍNICA TABANCURA S.A 99.84%(***) CIA. SEGUROS VIDA CÁMARA (PERU) 27.26% A.F.P. HABITAT 40.23% 99.9% CLÍNICA BICENTENARIO 100% SERV. MÉDICOS BICENTENARIO S.P.A 23.1% PREVIRED 52.15% 12.73% CLÍNICA IQUIQUE HOSPITAL CLÍNICO DE VIÑA DEL MAR 51.0% 50.0% REMASA LAB. NEUROFISIOLOGÍA DIGITAL Y ESTUDIO DEL SUEÑO S.A 51.0% DIAGNOLAB S.A 16.4% 99.9% 0.1% INVERSIONES D.C.V S.A. HABITAT ANDINA S.A 99.9% 99.9% INMOBILIARIA CLÍNICA CLÍNICA AVANSALUD 99.0% 99.9% ARAUCO SALUD LTDA. INMOBILIARIA MEGASALUD 51.0% 51.0% INVERSIONES SALUD ARICA S.A INVERSIONES SALUD MILLACURA S.A 99.92% AFP HABITAT S.A PERU 99.9% MEGASALUD 99.0% PROYECTOS DE INV. EN SALUD 51.0% ADM. DE INV. EN SALUD S.A 57.28% INVERSALUD DEL ELQUI S.A 15.46% 50% ADM.CLÍNICAS REGIONALES % CLÍNICA CHILLÁN S.A 96.69% INMOB. E INV. CURICÓ S.p.A 93.37% INVERSALUD PUERTO MONTT S.p.A 62.6% INMOB. E INV. CLÍNICA RANCAGUA S.p.A 94.14% INMOB. E INV. LIRCAY S.p.A 98.15% INVERSALUD VALPARAÍSO S.p.A 68.33% CLÍNICA MAGALLANES S.A 49.24% INVERSALUD CM ATACAMA S.A 51.12% INMOB. E INV. ATACAMA S.p.A 71.07% INVERSALUD TEMUCO S.A 98.41% INMOB. E INV. CLÍNICAS DEL SUR S.P.A 50% 100% ATESA ONCO RED 62.59% 49.99% 100% INVERSALUD LA PORTADA S.A TRANSACCIONES ELECTRÓNICAS ONCO COMERCIAL S.P.A 99.8% 99.9% I-MED AUTENTIA 99.9% I-MED CONSULTORÍA ANNUAL REPORT ILC 2013

17 14 / % 49.0% 99.9%(*) 32.9% 67% 100% INVESCO INTERNACIONAL DESARROLLOS EDUCACIONALES INV. MARCHANT PEREIRA LTDA. ICONSTRUYE CORP GROUP VIDA CHILE S.A. INMOBILIARIA ILC SPA 18.4% 99.9% INMOBILIARIA TIERRA FÉRTIL 99.9%(**) SOC. EDUC. MACHALÍ 30% ICERTIFICA S.A 99.9% 99.9% SOC. EDUC. HUECHURABA 20.58% CCI MARKET PLACE (COLOMBIA) CORP GROUP VIDA LIMITADA 99.9% 99.9% SOC. EDUC. PEÑALOLÉN SOC. EDUC. TEMUCO 99% IC PERU 72.12% CIA. DE SEGUROS CORPVIDA 99.9% CIA. DE SEGUROS CORPSEGUROS 99.9% SOC. EDUC. CIUDAD DEL ESTE 99.9% SOC. EDUC. V. LO CAMPINO 99.9% SOC. EDUC. PUERTO MONTT 99.9% SOC. EDUC. LO AGUIRRE 99.9% SOC. EDUC. CHICUREO 99.9% SOC. EDUC. CURAUMA 99.9% GESTIÓN EDUCATIVA 99.9% SERVICIOS EDUCACIONALES (*) THE 0.1% OF THE PROPERTY OF INVERSIONES MARCHANT PEREIRA LIMITADA BELONGS TO INVESCO LIMITADA (**) ILC HAS 0.1% OWNERSHIP OF SOCIEDAD EDUCACIONAL MACHALÍ. (***) 0.16% OF THE PROPERTY OF VIDA CAMARA PERU BELONGS TO INVERSIONES LA CONSTRUCCION S.A.

18 FINANCIAL INVESTMENTS (MILLIONS) $57,978 OPERATING INCOME FROM NON- INSURANCE BUSINESS (MILLIONS) $57,090 NET FINANCIAL DEBT 0.38x ASSETS ATTRIBUTED TO HOLDING COMPANY(MILLIONS) $476,577 DIVIDENDS RECEIVED 2013 CAPITAL MAGAZINE AND SANTANDER GBM, SHOWED THE RANKING OF THE 100 BEST COMPANIES TO INVEST ACCORDING TO SALES, PROFITABILITY AND VALUE CREATION. ILC INVERSIONES WON FIRST PLACE IN THE CATEGORY HIGH VALUE CREATION IN THE HEALTH AND WELFARE SECTOR, DUE TO GROWTH IN 2012 AND PROJECTIONS FOR % 0.37% 1.40% 4.15% 13.89% 57,090 DIVIDENDS RECEIVED (MILLIONS) 18.79% AFP Habitat Isapre Consalud Red Salud Vida Cámara DDEE Iconstruye OPERATING INCOME FROM NON-INSURANCE BUSINESS (MILLIONS) $645,993 OPERATING INCOME FROM INSURANCE BUSINESS (MILLIONS) $81,268 COMPANY PERSONNEL (PEOPLE) 15 ANNUAL REPORT ILC 2013

19 16 / 17

20 ANNUAL REPORT ILC 2013

21 18 / 19 NET INCOME AND RETURN ON EQUITY RETURN ON ILC V / S IPSA SHARES (Ch$ mill.) (ROE %) 125,000 50% 40% 100, % 40% 32% 24% 75,000 50,000 25, , % 19.2% 19.5% 19.3% 18.4% 16.6% 7.4% 8.7% 9.6% 11.5% 14.1% 11.3% -0.9% 9,983 24,561 17,656 25,146 49,412 27,311 35,162 30,680-2,542 66, ,156 81,041 83,031 84, % 20% 10% 0-10% 16% OPENING PRICE ILC 8% $7,061 0% 4,393-8% -16% -24% JUL/2012 AUG/2012 SEP/2012 OCT/2012 NOV/2012 DEC/2012 JAN/2013 FEB/2013 MAR/2013 APR/2013 MAY/2013 JUN/2013 JUL/2013 AUG/2013 SEP/2013 OCT/2013 CLOSING PRICE ILC $7,400 NOV/2013 DEC/2013 3,699 ROE Utilidad Real ILC IPSA NET PROFIT AND RETURN ON EQUITY HOLDING COMPANY (MILLIONS) $84,405 RETURN ON HERITAGE 18.4% EMPLOYEES OF THE COMPANY AND SUBSIDIARIES (PEOPLE) 12,367

22 05 HISTORIC OVERVIEW >1980 Sociedad de Inversiones y Rentas La Construcción S.A. becomes the investment company of the CChC. The purpose of the Company is investment in all types of real estate and shares, stock, bonds and other securities, particularly those issued by institutions of social security, insurance, clinics or hospitals, educational and electronic services. >1981 ILC becomes a founding shareholder of AFP Habitat in the new social security system resulting from D.L. N 3,500. Since then, AFP Habitat has kept a sustained growth, positioning itself as one of the industry leaders. >1982 At the Extraordinary Shareholders Meeting dated April 12, 1982, it was agreed to change the corporate name to Sociedad de Inversiones y Servicios La Construcción S.A. >1989 CChC opens its new 36,000 m 2 building located at the corner of street Marchant Pereira and Avenida Providencia, in order to cope with the operational growth and reunite CChC, AFP Habitat, Isapre Consalud and La Construcción Life Insurance Company in one building. >1996 Inversiones La Construcción and Citigroup become partners with the aim of jointly controlling the AFP Habitat through the company Inversiones Previsionales S.A. >1999 The Company Royal & Sun Alliance increases its ownership of the Life Insurance Company La Construcción to 51%. >2000 Following the division and amendment of the articles of Isapre Consalud, Megasalud S.A. is created as an outpatient provider on 20 November, to provide medical and dental care. >2004 The Company sells 100% ownership of Life Insurance Company La Construcción S.A. to Bicecorp. >2005 CChC contributes 99.9% of Isapre Consalud to the Company, through a capital increase. >2010 ILC reached through a Public Offering, % ownership of AFP Habitat, ending its joint action with Citigroup. After the OPA, the Company sold 14 % ownership of AFP Habitat on the market. Life Insurance Company Vida Cámara wins 36% of the tendered SIS for the period between July 2010 and June Red Salud companies inaugurate expansion of Avansalud Clinic, from 9,000 m2 to 31,000 m2, which includes an investment of $30 million and results in a fully integrated building with state-of-the-art technology >2011 ILC is inscribed in the Securities Register of the SVS and successfully completes its first bond issuance in the market. Desarrollos Educacionales, opens its first subsidized private school, named Nahuelcura, located in the district of Machalí. Life Insurance Company Vida Cámara integrates a team of experts and professionals in the health insurance field, in order to enhance participation in health and life insurance sector. Red Salud opens Bicentennial Health Clinic with more than 62,000 m 2. ANNUAL REPORT ILC 2013

23 BRANCH 06NETWORK ILC HAS BUSINESSES THAT PROVIDE SERVICES AIMED AT IMPROVING LIFE QUALITY AND WELFARE, ACCORDING TO THE VISION OF ITS CONTROLLING SHAREHOLDER.

24 / 22 XV ARICA I IQUIQUE II CALAMA II ANTOFAGASTA III COPIAPÓ III VALLENAR IV LA SERENA IV COQUIMBO IV OVALLE V LA LIGUA V LA CALERA V QUILLOTA V SAN FELIPE V LOS ANDES V QUILPUÉ V VIÑA DE MAR V VALPARAÍSO V SAN ANTONIO VI RANCAGUA VI SAN VICENTE DE TAGUA TAGUA VI SAN FERNANDO VII CURICÓ VII CONSTITUCIÓN VII TALCA VII LINARES VII CAUQUENES VII PARRAL VIII SAN CARLOS VIII YUNGAY VIII LAJA VIII ARAUCO VIII CHILLÁN VIII CABRERO VIII TALCAHUANO VIII CONCEPCIÓN VIII CORONEL VIII LOS ÁNGELES VIII CURANILAHUE IX ANGOL IX TEMUCO IX VILLARICA XIV VALDIVIA XIV LA UNIÓN X OSORNO X PUERTO MONTT X CALBUCO X CASTRO, ANCUD, QUELLÓN X PUERTO VARAS XI COYHAIQUE XI PUERTO AYSÉN XII PUNTA ARENAS XII PUERTO NATALES REGIÓN METROPOLITANA CONCHALÍ MAIPÚ PROVIDENCIA SANTIAGO ÑUÑOA LA FLORIDA PUENTE ALTO LAS CONDES SAN MIGUEL SAN BERNARDO VITACURA MELIPILLA INDEPENDENCIA RECOLETA TALAGANTE ESTACIÓN CENTRAL SAN JOAQUÍN

25 / 23 >1984 CChC is, under the new legal regime in the health field, a private corporation called Instituto de Salud Previsional de la Construcción, better known as Isapre Consalud. The Health Insurance Institution opens in January and is currently market leader in terms of beneficiaries and contributors. > Compañía de Seguros de Vida La Construcción is created. >1997 The Company Royal & Sun Alliance acquires 40% ownership of the Life Insurance Company La Construcción and starts participating in its management. The company Desarrollos Educacionales is created, which through various subsidiaries plans, creates and operates educational establishments. > CChC makes Isapre Consalud a corporation, keeping its position as an insurer company. >2001 ILC enters the E-business, by creating a platform for managing purchases and payment to suppliers of La Construction, called iconstruye. >2003 ILC acquires 51% of ownership held by Royal & Sun Alliance of Life Insurance Company La Construcción. >2008 Product of the tremendous growth and positioning of companies and health care providers throughout the country, Red Salud is constituted as a parent with the main objective of managing and controlling the business and shares of health areas related to ILC. >2009 After the Pension Reform of 2008, the Company decides to re-enter the insurance sector to participate in Disability and Survival Insurance (SIS) tenders hired by the Pension Fund Administrators, by acquiring RBS Company (Chile) Seguros de Vida S.A., a subsidiary of Royal Bank of Scotland. That same year the Life Insurance Company Vida Cámara is created and 28% of the SIS is allocated, for the period between July 2009 and June Red Salud starts construction works of new Bicentennial Clinic, which includes an investment of US $100 million. >2012 ANNUAL REPORT ILC 2013 In the Extraordinary Shareholders Meeting of April 2012, it was agreed to change the corporate name of the Company to Inversiones La Construction S.A. During January, Red Salud makes a successful placement of bonds in the market. ILC successfully makes its market opening, setting the share price at $ 7,061, raising US$ 468 million, becoming the largest market opening ever in the Chilean market. A subsidiary of AFP Habitat, Habitat Andina S.A, was created in 2012, and was awarded the first tender for a 2-year management service of individual accounts of new members of the Private Pension System (SPP) of Peru. >2013 An association between ILC and the British group Cognita is formed in June, selling 51% of Desarrollos Educacionales, in order to focus on the pension and health businesses. AFP Habitat begins operations in Peru in June, after being awarded the first tender of new members of the private pension system for two years. In September, Vida Cámara participates in the tender of the Disability and Survivors Insurance in Peru, winning two of seven parts. In November, ILC acquired 67% of Corp Group Vida Chile S.A., after a due diligence that began in September, indirectly acquiring the Life Insurance Companies CorpVida S.A. and CorpSeguros S.A., a transaction reaching an amount of CLP $87,250 million and whose equity represented approximately 13% of the equity securities of ILC.

26 SOCIAL 07RESPONSIBILITY IN 2014, RESOURCES WERE APPROVED TO IMPLEMENT 52 SOCIAL PROJECTS, REACHING THE MILESTONE OF HIGHEST SOCIAL INVESTMENT MADE BY THE CCHC WITH AN AMOUNT OF UF 426,062, WHICH WILL IN TURN PROVIDE 247,370 QUOTAS FOR SOCIAL BENEFITS. The Chilean Chamber of Construction - as controlling shareholder of Inversiones La Construction - participates through Social CChC in various social projects, which are a mechanism for member companies to engage in CSR. These projects arise as a response from the entrepreneurs of La Construcción, partners of La Cámara, and to the needs of their workers and their families in the areas of Training, Health, Housing, Education, Social Development, Culture, Sports and Recreation. CChC Social is established to coordinate and bring together non-profit organizations available to the member companies of the Chilean Chamber of Construction. These entities are responsible for the implementation of social projects in various fields of action, complying with the social commitment of construction companies to improve the quality of life of workers and families of the area. During 2013, Social CChC executed a total of 66 social projects, reaching a social investment of UF 327,612, providing 227,312 quotas, of which 205,053 are targeted to benefit construction workers and their families, and the difference to young people and children from the High Schools Coreduc and Children Centers Coprin. Additionally UF 25,113 was invested in the hospital plan Construye Tranquilo (build in peace), reaching a total of 14,797 beneficiaries. Resources to implement 52 social projects were approved for 2014, reaching a historic high of social investment made by the CChC for an amount of UF 426,062, which will in turn provide 247,370 quotas for social benefits. The amount allocated to inpatient plan continuity Construye Tranquilo is UF 27,198, providing health coverage for 25,200 construction workers and their families. ANNUAL REPORT ILC 2013

27 24 / 25

28 MANAGEMENT 08RESULTS ILC S NET INCOME DURING 2013 AMOUNTED TO $84,405 MILLION. At 31 December 2013, ILC Inversiones recorded a profit for the period (6) of $ million, 1.7% higher than the $83,031 reported in the same period of the previous year. Moreover, the total operating income (1+3) of the Company was $ 94,438 million, 23.8% lower than the same period last year; this is explained mainly by lower operating results of Vida Cámara. At December 2013, the revenue from ordinary activities (non-insurance business ) increased by 11.4% compared to December 2012 due to higher income from Consalud (6%), mainly due to higher numbers, income of contributors and sales in Red Salud (5%), associated mainly to increased activity in Megasalud and Bicentenario Clinic. STRUCTURE OF INCOME FOR THE PERIOD 2013 MM$ 2012 MM$ Operating income from non-insurance business (1) 94,594 96,753 Non-operating income from non-insurance business (2) 32,258 13,829 Operating income from insurance business (3) (156) 27,169 Non-operating income from insurance business (4) 1, Tax and Income from Non-controlling parties (5) (46,657) (55,090) PROFIT FOR THE PERIOD (6) 84,405 83,031 (1) Includes accounts : Revenue from ordinary activities, Cost of sales, profits resulting from derecognition of financial assets measured at amortized cost, other income by function, distribution costs, administrative expenses, marketing expenses, research and development costs, other operating expenses and other gains (losses). ( 2) Includes accounts: Financial income, financial costs, participation in profits (losses) of associates and joint ventures, exchange differences, results for indexed, gains (losses) arising from the difference between the previous carrying amount and the fair value of reclassified financial assets measured at fair value. (3) Includes net income accounts for interest and adjustments, Total operating income for the insurance company, Total operating cost for the insurance company and Total operating expenses. (4) Includes Total other income and expenses account. (5) Includes accounts: Income tax (non-insurance and insurance business) and income (loss) attributable to non-controlling interests. (6) Represents the income attributable to owners of the Parent. ANNUAL REPORT ILC 2013

29 26 / 27

30 During 2013, the income of the insurance business decreased by 18.0% compared to December 2012 due to lower premium income of Vida Cámara, associated with the Disability and Survivor s Insurance (-66 %), partly offset by premium income from Corp Group Vida Chile (48%). Total non-operating income of ILC Inversiones to December 2013 reported a profit of $36,624 million, 158% over the $ 14,199 million resulting from the same period last year. This variation is mainly explained by the Badwill resulting from the acquisition of 67% of Corp Group Vida Chile. RESULTS BY INDUSTRY Security Sector: its operating income was $82,632 million in 2013 and it was mainly due to the operating income of AFP Habitat of $75,919 million (92% of the sector), higher than last year s $ million or 3.4 %, Isapre Consalud $7,070 million (9% of the sector), lower than the $ million or % compared to 2012, Corp Group Vida Chile $1,747 million (2% of the sector) and Life Insurance Company Vida Cámara $ - 2,104 million (-3 % of the sector), lower than the $ million or % from last year. Health Sector: its operating income was $ 13,205 million as of December 2013, $ million or 43.8% over the previous year. Note that at the beginning of 2011, Red Salud opened its subsidiary Bicentenario Clinic to the public, which still maintains a marginally negative result related to the launch of its facilities. Other Sectors and Parent: had an operating income of $ 1,399 million during fiscal year MAJOR MANAGEMENT MILESTONES During March, a Peruvian subsidiary of Vida Cámara was incorporated, in order to participate in operations regarding the Disability and Survivor s Insurance, taking advantage of the reform established by Law No. 26,702, Law of the Financial System and Insurance System and Organic Law of the Superintendence of Banking and Insurance of Peru. Thus, on August 6 it received authorization, and participated in the first bidding process of the SIS in September, under this new modality. Vida Cámara (Peru) was awarded two fractions of seven, thus contributing actively in the reform process of the SIS in Peru. On June 18 the sale of 51% of Desarrollos Eduacionales S.A. to Cognita Chile Limitada took place, a subsidiary of the international education group Cognita, which excluded ILC shares in Sociedad Educacional Machalí S.A. This transaction represented approximately 0.6 % of the assets of ILC. The resulting partnership between Cognita Chile and Educational Development, will improve school standards, benefiting school students, which is consistent with the spirit of the Chilean Chamber of Construction. On 23 September, a Memorandum of Understanding is signed between ILC and the shareholders of Corp Group Vida Chile S.A., mainly stating ILC s acquisition of 67 % stake in Corp Group Vida Chile S.A., parent company of Life Insurance Companies CorpVida S.A. and CorpSeguros S.A. On November 18, 67% of CorpGroup Vida Chile S.A. is acquired COMPOSITION OF KEY ACCOUNTS OF THE BALANCE AND FINANCIAL RATIOS ASSETS AND LIABILITIES IN THE NON-INSURANCE BUSINESS 2013 MM$ 2012 MM$ Cash and cash equivalents 125,782 85,421 Current financial assets 25,376 89,517 Non-current financial assets 243, ,522 Property, plant and equipment 205, ,240 Investment properties 22,749 26,867 Current financial liabilities 42,798 28,361 Non-current financial liabilities 353, ,821 Trade Accounts payables 84,016 80,459 ASSETS AND LIABILITIES INSURANCE SERVICES Cash and Bank deposits 47,986 2,010 Securities 3,511,477 88,840 Investment properties and similar 523,157 0 Obligations with banks 51, Other financial obligations Total equity 717, ,185 Net debt (1) 0.38x 0.14x Return on equity (2) 18.4% 19.3% (1) (Current Financial Liabilities + Noncurrent Financial Liabilities + Obligations with Banks + Other Financial Liabilities - Cash and cash equivalents - Cash and Banks Deposits) / Total Equity. (2) ROE calculated as income for the year attributable to the Holding company / average equity attributable to the holding company. and a Shareholders Agreement is carried out along with the other shareholders of the company, which doesn t including a joint action agreement in the management of the companies involved. With this acquisition, ILC becomes the holding company of the Life Insurance Companies CorpVida S.A. and CorpSeguros S.A., companies whose product offerings complement the range of insurance currently offered by the group in the field of life insurance, most notably annuities, a service of which both companies have approximately 15% market share. ANNUAL REPORT ILC 2013

31 28 / 29

32 09SUBSIDIARIES ANNUAL REPORT ILC 2013

33 30 / 31

34 SUCCESSFUL RESOURCE MANAGEMENT FOR BETTER PENSIONS. ANNUAL MEMORIA REPORT ANUAL ILC 2013

35 32 / 33 SECTOR SECURITY SECTOR BESIDE YOU TO PROVIDE THE BEST ADVISING SERVICE.

36 TOTAL NUMBER OF AVERAGE MONTHLY CONTRIBUTORS (YEAR 2013) 1,253,360 MONTHLY AVERAGE N OF AFFILIATES (YEAR 2013) 2,131,306 N OF BRANCHES 27 SERVICE CENTERS 8 HABITAT IS CHARACTERIZED BY AN INVESTMENT POLICY THAT ENSURES THAT FUND MANAGEMENT IS DONE IN A RESPONSIBLE, TRANSPARENT MANNER; ALWAYS PROTECTING ITS MEMBER S INTERESTS. AFP Habitat, hereinafter Administrator is a public company, incorporated in 1981 under the new pension system, where the Company participates as a founding shareholder. In 1996, ILC and Citigroup became partners and took control of AFP Habitat, with an ownership of 80.46%. At the end of 2012, after the public stock offering and subsequent sale of 14% on 2010, ILC remained as holding company of AFP Habitat with 67.5 % ownership, through the firms Inversiones Previsionales Dos S.A. and Inversiones La Construcción Ltda. N WORKERS 1,254 (Chile) 84 (Peru) The 2008 pension reform consolidated the existing pension system and included some business changes in the industry, such as joint bidding, Disability and Survivor s Insurance, and the tendering of new affiliates. In August 2010, a new administrator joined via affiliate bidding, AFP Modelo, to which all new workers entering the labor force are compelled to join; being free to choose their pension fund administrator after two years. This marked a change in the competitive conditions of the market for the Pension Fund Administrators, as the relative share in the MOBIL CARE 22 AFP HABITAT OWNERSHIP STRUCTURE COMPANY SHAREHOLDING 2013 % INVERSIONES PREVISIONALES DOS S.A % INVERSIONES LA CONSTRUCCION LIMITADA 27.26% BANCO DE CHILE ON ACCOUNT OF NON- RESIDENT THIRD PARTIES 4.14% INVERSIONES UNION ESPAÑOLA S.A. 3.70% LARRAIN VIAL S.A. STOCKBROKERS 2.80% BCI CORREDORES DE BOLSA S.A. 2.01% VALORES SECURITY S.A. STOCKBROKERS 1.63% BANCO SANTANDER ON ACCOUNT OF FOREIGN INVESTORS 1.43% BANCHILE CORREDORES DE BOLSA S.A. 1.36% SANTANDER S.A. CORREDORES DE BOLSA S.A 1.17% BTG PACTUAL CHILE S.A. STOCKBROKERS 0.8% OTHERS 13.47% Source: Chilean Securities and Insurance Commission ANNUAL REPORT ILC 2013

37 34 / 35

38 ANNUAL REPORT ILC 2013

39 ASSETS (MILLIONS) $308,407 EQUITY (MILLIONS) $256,328 ORDINARY INCOME (MILLION) $128,458 NET EARNINGS (MILLIONS) $79, / 37 compulsory savings market presented a slight decline as a result of the tender preventing other Administrators from attracting new incomers to the work force. During the first half of 2012, the second tender was held for the second time and AFP Modelo won with a commission of 0.77 % from August On June 1, 2013 AFP Habitat S.A. began operating in Peru, giving rise to the incorporation period for all workers who start work and opt for the Private Pension System (PPS), which was awarded to the Administrator in accordance with the tender issued at the end of the preceding year for 24 months. AFP Habitat participates in the pension industry, which is governed by the DL 3.500, managing pension funds related with the compulsory pension savings and voluntary savings, including voluntary pension savings account (APV) and voluntary savings account (CAV). It also provides pensions in the form of programmed withdrawal pensions and temporary income. AFP Habitat focuses its business activities on the: Administration of compulsory retirement savings of the members. Administration of voluntary non-retirement savings or unrestricted (CAV). Administration of voluntary retirement savings (APV and APVC) Granting and payment of programmed retirement savings and temporary retirement income of pensioned members. Additionally AFP Habitat provides the following services: Support for the social security and investment management, including the collection of electronic social security contributions through its investment in Servicios de Administración Previsional S.A (Previred) and administration of documents representing financial assets through its investment in Depósito Central de Valores S.A. (DCV) 1. Administration of the Unemployment Insurance, through investment in Administradora de Fondos de Cesantía de Chile S.A. 2 At year-end 2013, AFP Habitat had a total of 2,117,127 members, representing 22.2% of the social security system, ranking second in the market, with a monthly average of 1,253,360 total contributors and an average monthly income that amounted to UF 27.17, increasing by 7.8% in real terms compared to 2012; this growth was 5.0% higher than the rise in earnings of the Pension Fund system. Assets of the pension funds managed by AFP Habitat at December 31, 2013 amounted to U.S. $ 42,722 million with a 26.2 % market share. AFP HABITAT S INTEREST IN TOTAL PENSION FUND SYSTEM CONTRIBUTORS TO DECEMBER 2013 Source: Superintendence of Pensions. EVOLUTION OF ASSETS UNDER MANAGEMENT OF AFP HABITAT (US$ MILLIONS) 50,000 40,000 30,000 20,000 10, % HABITAT 23.5% 0 19,246 Source: Superintendence of Pensions. 4.9 MILLION OF CONTRIBUTORS 23,368 27,824 24,129 31, % 8.9% 10.8% 19.7% 36,554 34,314 Plan Vital Cuprum Modelo Capital Habitat Provida 41,928 42, Central Securities Depository 2. Severance Fund Administrator

40 In regard to pension savings, AFP Habitat leads in the balance management of their Voluntary Pension Saving (APV) and Voluntary Savings Account (CAV) products, with a market share of 35.3% and 35.9 %, respectively. During 2013, AFP Habitat won first place in annual average return for funds D and E in a period of 36 months. Also, for the fourth year, AFP Habitat reached first place in the five funds managed, in a 5-year period (60 months). The results achieved were acknowledged by the international consulting firm Fund Pro Latin Asset Management, who distinguished AFP Habitat with two awards: The Pension Fund Administrator of the Year for its performance in the 5 funds as a whole, considering the best performance over a period of 36 months to June 2013, and a special award for the best return on Funds C, D and E. BUSINESS MANAGEMENT 2013 Insofar as the stock market is concerned during the course of 2013, a marked divergence between emerging and developed markets was observed. Having taken timely action was key to the performance of the investment decisions made, and therefore the profitability of funds. In fact, exposure to emerging markets funds was reduced by 10 %. This resulted in a profit of $ million for the cash reserve, which compares favorably to last year s profit of $13,061,000. During fiscal 2013, income from commissions showed an increase of $9,789 million compared to 2012, almost entirely explained by the positive developments of the job market as reflected in increased earnings. This managed to offset a commission reduction of the compulsory savings quota from 1.36 % to 1.27 %, and pension payments from 1.25% to 0.95%. The Administrator s net income for 2013 was $79,473,000, representing 6.5% increase over the previous year s earnings of $74,590 million. Regarding operating expenses, there was an increase of $ million, a situation that can be explained by the implementation of a plan of improvements in both availability and quality of services to our customers. Service Management - in force from that reports directly to General Manager, is an example of Habitat s commitment to its affiliates. In addition, an implementation of operational improvements was initiated, based on the LEAN methodology, aimed at increasing process efficiency and improving response times to affiliates. Additionally, Habitat s mobile branches (Habitat Móvil) - that reach remote municipalities - expanded to 22, allowing Habitat to reach 177 communes. These measures, along with the advertising campaigns aimed at social security education, transformed Habitat in the most memorable and preferred Pension Fund Administrator according to market research firm IPSOS. During January, 63,782 shares issued by the fund management company Sociedad Administradora de Fondos de Cesantía de Chile S.A. were sold to the company. The transaction totaled $3.438 million and represented a profit for AFP Habitat of $2,535 million. In June AFP Habitat S.A. started operations in Peru, after winning the bid for new incomers to the work force for 2 years, in December At year-end 2013, the number of members reached 110,385, with a market share of 2.0% EARNINGS OF AFP HABITAT WITHOUT ENCAJE (CL$ THOUSAND MILLIONS) EVOLUTION OF STOCK PRICE OF AFP HABITAT V/S IPSA YEAR % 10% 5% $910 0% -5% 4,349-10% -15% -20% -25% -30% JAN/2013 FEB/2013 MAR/2013 APR/2013 MAY/2013 JUN/2013 JUL/2013 AUG/2013 SEP/2013 OCT/2013 NOV/2013 DEC/2013 $696 3,699 Encaje Habitat S/ Encaje Source: ILC. AFP Habitat IPSA ANNUAL REPORT ILC 2013

41 38 / 39

42 CONSOLIDATED ASSETS (MILLIONS) $4,256,176 CONSOLIDATED LIABILITIES (MILLIONS) $4,050,665 EQUITY (MILLIONS) $205,511 EARNINGS OF THE HOLDING COMPANY (*) (millions) $1,736 CORP GROUP VIDA CHILE S.A. (* ) November-December 2013 EVOLUTION MANAGED ASSETS CORP GROUP VIDA CHILE (U.S. $ BILLION) % 3.8% % % 6 TOTAL MARKET AUM. 8.6% 4 US$ 47.4 Bn 9.2% MARKET PARTICIPATION ON ASSETS UNDER MANAGEMENT CGVC 16.6% 14.7% 13.1% Others Corpgroup Vida Chile Consorcio Nacional MetLife Principal BICE Vida Chilena Consolidada Penta Vida Cruz del Sur On September 23, 2013, ILC signed a Memorandum of Understanding with Inversiones Corp Group Interhold Ltda., Corp Group Banking S.A. and FIP Corp Life, single shareholders of the company Corp Group Vida Chile S.A., holding company of insurance companies CorpVida S.A. and CorpSeguros S.A. This agreement states that ILC will acquire 67% of the total issued, subscribed and paid stocks of Corp Group Vida Chile S.A., all the social rights of Corp Group Vida Ltda. and a stock of the insurance company CorpSeguros S.A., owned by Inversiones Corpgroup Interhold Ltda. On November 18, the acquisition of Corp Group Vida Chile S.A. takes place, with a 72.1% ownership of CorpVid and 99.9% ownership of CorpSeguros. Both companies are focused on life insurance, being annuities the most important line within their portfolio. ILC began consolidating the results of Corp Group Vida Chile from November 1, During this period, the firm contributed a net profit of $ 1,736 million to the Company. This has led ILC to become a major player in the life insurance industry; both companies having a 16.6% market share of managed assets, 14.7% of direct premium annuities, and a total direct premium of 8.1% to December MARKET PARTICIPATION DIRECT PREMIUM ON ANNUITIES 18.1% CGVC 14.7% TOTAL MARKET PREMIUMS US$ 3.3 Bn 6.7% 6.9% 8.2% 8.6% 10.7% 13.0% 13.0% Source: Chilean Association of Insurers Others Corpgroup Vida Chile Consorcio Nacional MetLife Principal BICE Vida Chilena Consolidada Sura Penta Vida ANNUAL REPORT ILC 2013

43 40 / 41

44 TOTAL NUMBER OF CUSTOMERS 267,750 INSURED 223,000 PENSIONED MEMBERS 44,750 INDIVIDUAL LIFE POLICY NUMBER 33,000 WE SEEK TO PROVIDE FINANCIAL SECURITY TO OUR CUSTOMERS THROUGHOUT THEIR LIVES, BY PROVIDING AN EXCELLENT SERVICE, AND ACTING RESPONSIBLY AND ETHICALLY. The start of CorpVida dates back to 1989, when it was incorporated as Compensa Compañía de Seguros de Vida S.A. In 1996, Corp Group and the North American Mass Mutual International, acquired Compensa Compañías de Seguros S.A. and changed its name to Compañía de Seguros Vida Corp S.A. Four years later the company merged with the same group Mass Seguros de Vida S.A. leaving Life Corp as one of the strongest Life Insurance Companies in the market. In 2006, the company moved to the corporate headquarters of Holding CorpGroup, and changed its name to Compañías de Seguros CorpVida S.A. to unify its image. The company has been controlled by ILC from November 2013, under the sustainable growth strategy in the field of Annuities, Insurance and Savings. Today the company presents itself as one of the market leaders in Annuity with 19 branches throughout Chile, with approximately 267,000 customers, of which 44,750 are pensioned members. Compañía de Seguros CorpVida S.A. focuses its business activities on: Granting and payment of pensions in the form of Annuities to pensioned members. Individual Life Insurance Consumer Credits for Pensioned Members Mass Market Insurance At year-end 2013, CorpVida, the area of annuities raised a total of UF 9,372,439, decreasing by 5.3 % over the previous year. With this figure, the company got 3rd place in the ranking of companies that provide this service, with a 12.5 % interest and an average premium of UF 2,055. Meanwhile, the business of Individual Life Insurance expanded 12% over 2012, well above the 2% growth achieved by the market. In the area of consumer loans for Pensioned Members in 2013, the Company supported it members by approving 6,805 consumer loans, reaching historic highs in the number of operations performed for the fourth consecutive year. This represented a net placement of UF 175,913, growing 10% over Finally, in the business of Mass Market Insurance, the total revenue for the year 2013 was of UF 775,650, which represented a decrease of 14 % compared to 2012, due to losing the mortgage (debt) relief contract held with Condell Corpbanca banks. AVERAGE MONTHLY VISITS TO CORPORATE WEB SITE 17,000 ASSETS (MILLIONS) $2,230,608 EQUITY (MILLION) $143,981 NUMBER OF BRANCHES 19 ANNUAL REPORT ILC 2013