(Convenience translation into English from the original previously issued in Portuguese) ITR QUARTERLY INFORMATION 09/30/2016 SUL AMÉRICA S/A Capital Stock Shares Number (units) Capital Stock Common Preferred Total Treasury Stock Common Preferred Total Current Year 09/30/2016 512,362,664 509,842,829 1,022,205,493 5,975,238 11,950,477 17,925,715
(Convenience translation into English from the original previously issued in Portuguese) ITR QUARTERLY INFORMATION 9/30/2016 SUL AMÉRICA S/A CASH DIVIDENDS EVENT APPROVAL TYPE DATE OF PAYMENT TYPE OF SHARE AMOUNT PER SHARE Board of Directors Meeting 03/30/2016 Dividends 04/18/2016 Common share 0.08015 Board of Directors Meeting 03/30/2016 Dividends 04/18/2016 Preferred share 0.08015
(Convenience translation into English from the original previously issued in Portuguese) ITR QUARTERLY INFORMATION 09/30/2016 SUL AMÉRICA S/A Financial Statements Company / Assets (in thousands of Reais) Code Current Quarter 9/30/2016 Prior year 12/31/2015 1 Total Assets 5,805,719 5,634,062 1.01 1.01.01 1.01.01.01 1.01.01.02 1.01.02 1.01.02.01 1.01.02.01.01 1.01.02.01.02 1.01.02.02 1.01.02.02.01 Current Assets Cash and Cash Equivalents Cash and Banks Cash Equivalents Marketable Securities Marketable Securities Valued at Fair Value Securities Trading 146,671 468,417 591 611 591 611 49,004 223,889 223,889 223,889 1.01.03 Accounts Receivable 67,465 170,855 1.01.03.01 Customers 67,465 170,855 1.01.03.01.01 Receivables 67,465 170,855 1.01.03.02 Other Accounts Receivable 1.01.04 Inventories 1.01.05 Biological Assets 1.01.06 Tax Recoverable 29,473 72,867 1.01.06.01 Current Tax Recoverable 29,473 72,867 1.01.07 Prepaid Expenses 1.01.08 Other Current Assets 138 195 1.01.08.01 Noncurrent Assets for Sale 1.01.08.02 Assets of Discontinued Operations 1.01.08.03 Other 138 195 1.01.08.03.01 Reinsurance assets 1.01.08.03.02 Deferred Acquisition Costs 1.01.08.03.03 Other 138 195 1.02 Noncurrent Assets 5,659,048 5,165,645 1.02.01 Longterm Assets 84,045 1,449 1.02.01.01 Marketable Securities Valued at Fair Value 1.02.01.01.01 1.02.01.01.02 Securities Trading Securities Available for Sale 1.02.01.02 Marketable Securities Accounted for Amortized Cost 1.02.01.02.01 Securities Held to Maturity 1.02.01.03 Accounts Receivable 1.02.01.03.01 Customers 49,004 49,004 Securities Available for Sale Marketable Securities Accounted for Amortized Cost Securities Held to Maturity
(Convenience translation into English from the original previously issued in Portuguese) ITR QUARTERLY INFORMATION 09/30/2016 SUL AMÉRICA S/A Financial Statements Company / Assets (in thousands of Reais) Code Current Quarter 9/30/2016 Prior year 12/31/2015 1.02.01.03.02 Other 1.02.01.04 Inventories 1.02.01.05 Biological Assets 1.02.01.06 Deffered Tax 82,517 1.02.01.06.01 Income Tax and Social Contribution 82,517 1.02.01.07 Prepaid Expenses 1.02.01.08 Loans to Related Parties 1.02.01.08.01 Loans to Affiliates 1.02.01.08.02 Loans to Subsidiaries 1.02.01.08.03 Credits with Controllers 1.02.01.08.04 Loans to Others Related Parties 1.02.01.09 Others NonCurrent Assets 1,528 1,449 1.02.01.09.01 Noncurrent Assets for Sale 1.02.01.09.02 Assets of Discontinued Operations 1.02.01.09.03 Judicial deposits 1,528 1,449 1.02.01.09.04 Reinsurance assets 1.02.01.09.05 Deferred Acquisition Costs 1.02.01.09.06 Other 1.02.02 Investments 5,574,997 5,164,183 1.02.02.01 Equity in Associated Companies 5,574,997 5,164,183 1.02.02.01.01 Investments in Affiliates 3,196,621 1,999,821 1.02.02.01.02 Investments in Subsidiaries 2,378,376 3,164,362 1.02.02.01.03 Investments in Jointly Controlled 1.02.02.01.04 Others Equity in Associated Companies 1.02.02.02 Properties for Investiments 1.02.02.02.01 Property for Rent 1.02.02.02.02 () Depreciation 1.02.03 Property and Equipment 5 11 1.02.03.01 Property and Equipment in Operation 5 11 1.02.03.02 Property and Equipment Leased 1.02.03.03 Property and Equipment in Progress 1.02.04 Intangible Assets 1 2 1.02.04.01 Intangible Assets 1 2 1.02.04.01.01 Concession 1.02.04.01.02 Trademarks and Patents 1.02.04.01.03 Goodwill
(Convenience translation into English from the original previously issued in Portuguese) ITR QUARTERLY INFORMATION 09/30/2016 SUL AMÉRICA S/A Financial Statements Company / Assets (in thousands of Reais) Code Current Quarter 9/30/2016 Prior year 12/31/2015 1.02.04.01.04 Software 1 2 1.02.04.01.05 Expenditure Organization, Implementation and Installation 1.02.04.01.06 () Amortization 1.02.04.02 Goodwill
(Convenience translation into English from the original previously issued in Portuguese) ITR QUARTERLY INFORMATION 09/30/2016 SUL AMÉRICA S/A Financial Statements Company / Liabilities (in thousands of Reais) Code Current Quarter 9/30/2016 Prior year 12/31/2015 2 Total Liabilities and Shareholders' Equity 5,805,719 5,634,062 2.01 Current Liabilities 340,290 360,402 2.01.01 Social Obligations and Labor 2.01.01.01 Social Obligations 2.01.01.02 Payroll 2.01.01.02.01 Labor Contingencies 2.01.02 Suppliers 2.01.02.01 National Suppliers 2.01.02.02 International Suppliers 2.01.03 Tax 277 254 2.01.03.01 Federal Tax 277 245 2.01.03.01.01 Income Tax and Social Contribution Payable 2.01.03.01.02 PIS / COFINS Payable 60 17 2.01.03.01.05 Other Taxes and Contributions 121 136 2.01.03.01.06 Thirdparty Income Tax 96 92 2.01.03.02 State Tax 2.01.03.03 Municipal Tax 9 2.01.03.03.01 Services Rendered Tax Payable 9 2.01.04 Loans and Financing 338,596 217,798 2.01.04.01 Loans and Financing 21,637 20,117 2.01.04.01.01 Loans and Financing Local Currency 21,637 20,117 2.01.04.01.02 Loans and Financing Foreign Currency 2.01.04.02 Debentures 316,959 197,681 2.01.04.03 Financing for Lease 2.01.05 Other Obligations 1,417 142,350 2.01.05.01 Related Party Liabilities 1 2.01.05.01.01 Debts with Affiliates 2.01.05.01.02 Debts with Subsidiaries 2.01.05.01.03 Debts with Controllers 2.01.05.01.04 Other Debts with Related Parties 1 2.01.05.02 Other 1,417 142,349 2.01.05.02.01 Dividends and Interest on Capital Payable 733 141,080 2.01.05.02.02 Minimum Mandatory Dividend Payable 2.01.05.02.03 Obligations for stock incentive 2.01.05.02.04 Accounts Payable 81 143 2.01.05.02.05 Other Accounts Payable 603 1,126 2.01.06 Provisions 2.01.06.01 Provisions Tax, Social Security, Labor and Civil 2.01.06.01.01 Tax Contingencies
(Convenience translation into English from the original previously issued in Portuguese) ITR QUARTERLY INFORMATION 09/30/2016 SUL AMÉRICA S/A Financial Statements Company / Liabilities (in thousands of Reais) Code Current Quarter 9/30/2016 Prior year 12/31/2015 2.01.06.01.02 Labor Contingencies and Social Security 2.01.06.01.03 Provisions for Employee Benefits 2.01.06.01.04 2.01.06.02 Civil Contingencies Other 2.01.06.02.01 Warranties Provision 2.01.06.02.02 2.01.06.02.03 Restructuring Provision Provision for Environmental Liabilities and Desactivation 2.01.07 Liabilities NonCurrent Assets of the Sale and Discontinued 2.01.07.01 Liabilities NonCurrent Assets on Sale 2.01.07.02 Liabilities of Discontinued Operations Assets 2.02 NonCurrent Liabilities 582,325 861,881 2.02.01 Loans and Financing 580,956 860,491 2.02.01.01 Loans and Financing 180,000 180,000 2.02.01.01.01 Loans and Financing Local Currency 180,000 180,000 2.02.01.01.02 Loans and Financing Foreign Currency 2.02.01.02 Debentures 400,956 680,491 2.02.01.03 Financing for Lease 2.02.02 Other Obligations 2.02.02.01 Related Party Liabilities 2.02.02.01.01 Debts with Affiliates 2.02.02.01.02 Debts with Subsidiaries 2.02.02.01.03 Debts with Controllers 2.02.02.01.04 Other Debts with Related Parties 2.02.02.02 Other 2.02.02.02.01 Obligations for stock incentive 2.02.02.02.02 Future Capital Increase 2.02.02.02.03 Accounts Payable 2.02.02.02.04 Other Accounts Payable 2.02.02.02.05 Other 2.02.03 Deferred Taxes 104 2.02.03.01 Income Tax and Social Contribution 104 2.02.04 Provisions 1,369 1,286 2.02.04.01 Provisions Tax, Social Security, Labor and Civil 1,369 1,286 2.02.04.01.01 Tax Contingencies 1,369 1,286 2.02.04.01.02 Labor Contingencies and Social Security
(Convenience translation into English from the original previously issued in Portuguese) ITR QUARTERLY INFORMATION 09/30/2016 SUL AMÉRICA S/A Financial Statements Company / Liabilities (in thousands of Reais) Code Current Quarter 9/30/2016 Prior year 12/31/2015 2.02.04.01.03 Provisions for Employee Benefits 2.02.04.01.04 Civil Contingencies 2.02.04.02 Other 2.02.04.02.01 Warranties Provision 2.02.04.02.02 Restructuring Provision 2.02.04.02.03 Provision for Environmental Liabilities and Desactivation 2.02.04.02.04 Technical reserves Insurance 2.02.05 Liabilities NonCurrent Assets of the Sale and Discontinued 2.02.05.01 Liabilities NonCurrent Assets on Sale 2.02.05.02 Liabilities of Discontinued Operations Assets 2.02.06 Unearned Profits and Revenue 2.02.06.01 Unearned Profits 2.02.06.02 Unearned Revenue 2.02.06.03 Grants Investment 2.03 Shareholders' Equity 4,883,104 4,411,779 2.03.01 Capital 2,319,882 2,319,882 2.03.02 Capital Reserves 276,834 262,486 2.03.02.01 Goodwill on Issue of Shares 327,885 328,137 2.03.02.02 Special Reserve Goodwill 25,995 25,995 2.03.02.03 Sale of the Warrant 2.03.02.04 Options Granted 46,564 36,721 2.03.02.05 Treasury Stock (83,697) (88,454) 2.03.02.06 Future Capital Increase 2.03.02.07 Transactions capital goodwill and negative goodwill (39,913) (39,913) 2.03.03 Revaluation Reserves 2.03.04 Profit Reserves 1,947,823 1,947,823 2.03.04.01 Legal Reserve 149,119 149,119 2.03.04.02 Statutory Reserve 1,798,704 1,798,704 2.03.04.03 Contingency Reserve 2.03.04.04 Unrealized Profit Reserve 2.03.04.05 Retained Profits 2.03.04.06 Special Reserve Unpaid Dividends 2.03.04.07 Tax Incentive Reserve 2.03.04.08 Additional Proposed Dividend 2.03.04.09 Treasury Stock 2.03.05 Profits / Losses 380,601
(Convenience translation into English from the original previously issued in Portuguese) ITR QUARTERLY INFORMATION 09/30/2016 SUL AMÉRICA S/A Financial Statements Company / Liabilities (in thousands of Reais) Code Current Quarter 9/30/2016 Prior year 12/31/2015 2.03.06 Equity Adjustment (42,036) (118,412) 2.03.07 Cumulative Translation Adjustments 2.03.08 Other Comprehensive Income 2.03.09 Participation of Noncontrolling Shareholders
(Convenience translation into English from the original previously issued in Portuguese) ITR QUARTERLY INFORMATION 09/30/2016 SUL AMÉRICA S/A Financial Statements Company / Income Statements (in thousands of Reais) Code 3.01 Revenue from Sales and Services 3.01.01 Net premiums Insurance 3.01.02 Other Operating Income Insurance 3.01.03 Premiums, retained contributions and net asset management fee Private pension 3.01.04 Other Operating Income Private pension 3.01.05 Saving bonds 3.01.06 ASO 3.01.07 Asset management 3.01.08 Other Operating Income 3.01.09 Changes in Technical Reserves Insurance 3.01.10 Changes in Technical Reserves Private pension 3.02 Cost of Products and Services Sold 3.02.01 3.02.02 Claims Insurance Acquisition Costs Insurance 3.02.03 Other Operating Expenses Insurance 3.02.04 Benefit expenses Private Pension 3.02.05 Acquisition Costs Private Pension 3.02.06 Other Operating Expenses Private Pension 3.02.07 Saving bonds 3.02.08 ASO 3.02.09 Asset management 3.02.10 Other Operating Expenses 3.03 Gross Profit 3.04 Operating Income/Expenses 3.04.01 Selling Expenses 3.04.02 General and Administrative Expenses 3.04.02.01 Administrative Expenses 3.04.03 Impairment of Assets 3.04.04 Other Operating Income 3.04.04.01 Equity Income (Expense Net) 3.04.05 Other Operating Expenses 3.04.06 Equity interest 3.05 Income Before Income Taxes and Financial 3.06 Investment Income Current Quarter 7/1/2016 to 9/30/2016 166,184 (3,406) (3,406) 169,590 166,184 (28,885) Yeartodate of the current year 1/1/2016 to 9/30/2016 438,887 (17,855) (17,855) (4) (4) 456,746 438,887 (87,553) Same quarter of the prior year 7/1/2015 to 9/30/2015 244,759 (17,793) (17,793) (9) (9) 262,561 244,759 (28,748) Yeartodate of the prior year 1/1/2015 to 9/30/2015 529,482 (24,579) (24,579) (17) (17) 554,078 529,482 (84,212)
(Convenience translation into English from the original previously issued in Portuguese) ITR QUARTERLY INFORMATION 09/30/2016 SUL AMÉRICA S/A Financial Statements Company / Income Statements (in thousands of Reais) Code 3.06.01 3.06.02 Investment Income Investment Expenses 3.07 Income Before Income Tax, Social Contribution and Profit Sharing 3.08 Income Tax and Social Contribution on Profit 3.08.01 Current 3.08.02 Deffered 3.09 Net Profit from Continuing Operations 3.10 Net Profit from Discontinued Operations 3.10.01 Net Income / Loss from Discontinued Operations 3.10.02 Gains / losses on Net Assets of Discontinued Operations 3.11 Net Income 3.99 Earnings per Share 3.99.01 Basic Earnings per Share 3.99.01.01 For Preferred Share 3.99.01.02 For Common Share 3.99.02 Diluted Earnings per Share 3.99.02.01 For Preferred Share 3.99.02.02 For Common Share Current Quarter 7/1/2016 to 9/30/2016 Yeartodate of the current year 1/1/2016 to 9/30/2016 Same quarter of the prior year 7/1/2015 to 9/30/2015 Yeartodate of the prior year 1/1/2015 to 9/30/2015 4,333 16,608 3,224 24,004 (33,218) (104,161) (31,972) (108,216) 137,299 351,334 216,011 445,270 10,964 29,267 (9,094) (9,109) (9,085) (9,085) 10,964 29,267 (9) (24) 148,263 380,601 206,917 436,161 148,263 380,601 206,917 436,161 0.14760 0.37930 0.20620 0.43480 0.14760 0.37910 0.20630 0.43490 0.14550 0.37390 0.20280 0.42640 0.14660 0.37650 0.20460 0.43070
(Convenience translation into English from the original previously issued in Portuguese) ITR QUARTERLY INFORMATION 09/30/2016 SUL AMÉRICA S/A Financial Statements Company / Comprehensive Income (in thousands of Reais) Code 4.01 Net Income Company Period 4.02 Other Components of Comprehensive Income 4.02.01 Gains and (losses) not realized in financial assets available for sale 4.02.02 Unrealized losses on cash flow hedge, net of gains 4.02.03 Realized gains on cash flow hedge, net of losses 4.02.04 Income tax and social contribution related to components of other comprehensive income 4.02.05 Gains and (losses) of Change in Ownership Interest 4.02.06 Other comprehensive income of investees companies recognized by equity method 4.03 Comprehensive Income for the Period Current Quarter 7/1/2016 to 9/30/2016 Yeartodate of the current year 1/1/2016 to 9/30/2016 Same quarter of the prior year 7/1/2015 to 9/30/2015 Yeartodate of the prior year 1/1/2015 to 9/30/2015 148,263 380,601 206,917 436,161 16,272 76,376 (35,479) (48,066) (313) 107 (3,981) (4,291) (160) (304) 20,253 80,667 (35,319) (47,556) 164,535 456,977 171,438 388,095
(Convenience translation into English from the original previously issued in Portuguese) ITR QUARTERLY INFORMATION 09/30/2016 SUL AMÉRICA S/A Financial Statements Company / Statements of Cash Flow Indirect Method (in thousands of Reais) Code 6.01 Net cash by Operating Activities 302,557 6.01.01 Cash generated by operating activities 6.01.01.03 Interest and inflation adjustment of issued debentures 104,403 92,987 6.01.01.13 Other 6.01.02.01 Change in marketable securities 6.01.02.02 Change in receivables 6.01.02.05 6.01.02.06 Dividends and interest on equity received 6.01.02.09 Change in deferred Acquisition costs 6.01.02.10 Change deferred taxes assets 6.01.02.14 Change in deferred taxes 27 6.01.02.15 Change in insurance and reinsurance liabilities 6.01.02.17 44 338,768 (51) (72) 6.01.02.18 Change in other provisions 6.01.02.19 Income tax and social contribution paid 6.01.02.20 Withholding income tax on dividends received (6,314) (22,016) 6.01.03 Others 6.02 Net cash by Investing Activities 6.02.01 Changes in accrued liabilities for lawsuits Yeartodate of the current year 1/1/2016 to 9/30/2016 6.01.01.01 Net income before tax and social contribution 351,334 445,270 6.01.01.02 6.01.01.05 Interest and inflation adjustments on REFIS tax refinance 37 6.01.01.06 Interest and inflation adjustments on judicial deposits and lawsuits 6.01.01.12 Interest and inflation adjustment on judicial deposits 6.01.02 Change in assets and liabilities 6.01.02.07 Stock options 6.01.01.09 Writeoff on sale of investments 6.01.01.10 Gain on sale of investments or fixed assets 6.01.01.11 Interest and inflation adjustment on tax credit offset 6.01.02.08 Depreciation and amortization 6.01.01.04 Equity loss in associated companies 6.01.01.07 6.01.01.08 Positive equity interest Change in salvages for sale Change in other assets/liabilities Increase in capital 6.02.02 Purchase of equity interest 6.02.03 Selling of equity interest 6.02.04 Purchase of fixed assets and intangible assets 149,144 6.01.02.16 Change in technical reserves Insurance (7,171) 2 15 (6,192) (28) 4 309,728 174,885 236,022 57 Yeartodate of the prior year 1/1/2015 to 9/30/2015 318,408 23 (456,746) (554,078) (5,190) (73) 657 23,314 113,183 6.01.02.03 Change in taxes (33,062) (9,478) 6.01.02.04 6.01.02.11 6.01.02.13 interest Paid Change in reinsurance assets Change in judicial deposits Change in accounts payable 6.01.02.12 Change in loans and financing 11,257 (96,490) (20,360) (96) 83 18 253,970 (59,420) (86,383) (82)
(Convenience translation into English from the original previously issued in Portuguese) ITR QUARTERLY INFORMATION 09/30/2016 SUL AMÉRICA S/A Financial Statements Company / Statements of Cash Flow Indirect Method (in thousands of Reais) Code Yeartodate of the current year 1/1/2016 to 9/30/2016 Yeartodate of the prior year 1/1/2015 to 9/30/2015 6.02.05 Selling of fixed assets and intangible assets 6.02.20 Other net proceeds and (payments) 6.03 Net Cash by Financing Activities (318,368) Amortization of loans (166,650) (166,650) 6.03.03 Capital increase Receiving 6.03.05 Purchase of shares to hold them in treasury 6.03.09 Dividends and interest on equity paid 6.05 (302,577) 6.03.01 Loans end credit lines 6.03.02 6.03.04 Decrease capital Payment 6.03.06 Selling of shares in treasury 7,040 35,740 6.03.07 Options granted exercised 6.03.08 Repurchase of shares in market 6.03.20 Other net proceeds and (payments) 6.04 Foreign Exchange on Cash and Equivalents Increase/(Decrease) in Cash and Cash Equivalents (20) 40 (42,673) (140,347) (144,785) 6.03.10 Refis tax refinance 6.03.11 Financial lease (2,620) 6.05.01 Cash and Cash Equivalents at Beginning of Period 611 27 6.05.02 Cash and Cash Equivalents at End of Period 591 67
(Convenience translation into English from the original previously issued in Portuguese) ITR QUARTERLY INFORMATION 09/30/2016 SUL AMÉRICA S/A Financial Statements Company / Statement of Changes in Shareholders' Equity 01/01/2016 to 09/30/2016 (in thousands of Reais) Code 5.01 5.02 5.03 5.04.01 5.04.04 Treasury Stock Acquired 5.04.05 5.04.06 Supplementary dividends 5.04.07 Interest on Shareholders' Equity 5.04.08 Additional Dividends Proposed 5.04.09 Options Granted Exercised 5.04.10 5.04.11 Intermediaries/Interim Dividends 5.04.12 5.05 Total Comprehensive Income 5.05.01 Net Income 5.05.02.05 5.06 Reversion of Estatutary Reserve 5.04.13 Mandatory dividends 5.04.14 Transactions capital negative goodwill 5.05.02 Opening Balance Prior Year Adjustments 5.02.01 Changes in Accounting Practices Adjustments Balance 5.04 Capital Transactions with Partens Capital Increase 5.04.02 Stock Issue Expenses 5.04.03 Recognized Granted Options 5.05.02.01 Financial Instruments Adjustments 5.05.02.02 Taxes of Financial Instruments Adjustments 5.05.02.03 Comprehensive Income of Equity Affiliates 5.05.02.04 Convergion Adjustments Tax Adjustments of Conversion Period 5.05.02.06 Noncontrolling Interest 5.05.02.07 Treasury Shares Sold Other Comprehensive Income Reversion of Estatutary Reserve 5.05.02.08 Gains and (losses) of Change in Ownership Interest 5.05.03 Reclassification to Results 5.05.03.01 Financial Instruments Adjustments 5.06.01 5.06.02 Changes in Shareholders' Equity Increase of Capital Reserves Recognitional of Revaluation Reserves 5.06.03 Taxes on Recognitional of Revaluation Reserves Capital 2,319,882 380,601 Capital Reserves, Granted Options and Treasury Stock Profit reserves 380,601 76,376 456,977 Other Comprehensive Income (118,412) 380,601 (4,291) (4,291) 5.06.07 Interest on Shareholders' Equity Net Income (Losses) (2,620) 7,040 262,486 1,947,823 5.06.08 Realized on Reserves 5.05.02.09 Others adjustments 5.06.09 Others adjustments 5.07 Final Balance Transactions Capital Goodwill 5.06.04 Intermediaries Dividends 5.06.05 Additional Dividends Proposed 2,319,882 262,486 1,947,823 14,348 9,928 2,319,882 276,834 1,947,823 380,601 (2,620) 7,040 Equity 4,411,779 (118,412) 4,411,779 76,376 14,348 9,928 80,667 5.06.06 Mandatory dividends (42,036) 76,376 80,667 4,883,104
(Convenience translation into English from the original previously issued in Portuguese) ITR QUARTERLY INFORMATION 09/30/2016 SUL AMÉRICA S/A Financial Statements Company / Statement of Changes in Shareholders' Equity 01/01/2015 to 09/30/2015 (in thousands of Reais) Code 5.01 Opening Balance 5.02 5.02.01 5.03 Prior Year Adjustments 5.04 Capital Transactions with Partens 5.04.01 5.04.02 Stock Issue Expenses 5.04.03 Recognized Granted Options Treasury Shares Sold 5.04.06 Supplementary dividends 5.04.07 Interest on Shareholders' Equity 5.05 Total Comprehensive Income Capital 2,319,882 Gains and (losses) of Change in Ownership Interest 5.05.03.01 Financial Instruments Adjustments 5.06.02 Recognitional of Revaluation Reserves 5.06.03 Taxes on Recognitional of Revaluation Reserves 5.06.09 Others adjustments 5.07 Adjustments Balance 5.04.04 Treasury Stock Acquired 5.04.05 5.04.08 5.06.06 5.06.07 Changes in Accounting Practices Additional Dividends Proposed 2,319,882 35,740 (24,086) (24,086) (313) (313) 107 107 Capital Reserves, Granted Options and Treasury Stock 261,172 1,426,147 Profit reserves Net Income (Losses) (26,141) 436,161 Other Comprehensive Income 2,319,882 261,172 1,426,147 (61,372) (84) (26,141) (24,086) (50,311) (42,673) 5.04.10 Reversion of Estatutary Reserve 5.05.02 Capital Increase 5.04.09 Options Granted Exercised 5.04.11 5.04.14 Transactions capital negative goodwill 5.05.01 Net Income 5.05.02.01 Financial Instruments Adjustments 5.05.02.02 Taxes of Financial Instruments Adjustments 5.05.02.03 Comprehensive Income of Equity Affiliates 5.05.02.04 Convergion Adjustments 5.05.02.05 Tax Adjustments of Conversion Period 5.05.03 5.06 Intermediaries/Interim Dividends 5.04.12 Transactions Capital Goodwill 5.04.13 5.05.02.09 Mandatory dividends Other Comprehensive Income 5.05.02.06 Noncontrolling Interest 5.05.02.07 Reversion of Estatutary Reserve 5.05.02.08 Others adjustments Reclassification to Results Changes in Shareholders' Equity 5.06.01 Increase of Capital Reserves 5.06.04 Intermediaries Dividends 5.06.05 Additional Dividends Proposed Mandatory dividends Interest on Shareholders' Equity Final Balance 436,161 (48,066) 388,095 (48,066) (48,066) (47,556) (47,556) 5.06.08 Realized on Reserves 6,849 261,088 1,400,006 (61,372) 3,945,829 436,161 Equity 3,945,829 6,849 (109,438) 4,283,613 (42,673) 35,740 412,075 (26,141) (304) (304)
(Convenience translation into English from the original previously issued in Portuguese) ITR QUARTERLY INFORMATION 09/30/2016 SUL AMÉRICA S/A Financial Statements Company / Statement of Added Value (in thousands of Reais) Code 7.01 Revenues 7.01.01 7.01.02 7.06.01 7.06.03 Other Revenues 7.01.02.01 Changes in Technical Reserves Insurance 7.01.02.02 7.01.03 7.01.04 Provision for Doubtful Accounts Reversion / (Constitution) 7.02 7.02.01 7.02.02 7.02.04 Other 7.03 7.04 7.04.02 Other Sales of Goods, Products and Services Changes in Technical Reserves Private pension Revenue for the Construction of Owned Assets Input Purchase from ThirdParties Cost Products, Goods and Services Sold MaterialsEnergyServicesOther Third Party Loss/ Assets Value Recuperation Gross Added Value Retentions Depreciation, Amortization and Depletion 7.05 Net Added Value Produced Equity interest 456,746 7.06.02 Investment Income 16,489 Other 21,656 7.06.03.01 Net of Reinsurance Ceded Operation (8,467) (7,221) 7.06.03.02 Net of Coinsurance Ceded Operation 7.06.03.03 Exchange Variation Loans and Commitments Receivable 7.06.03.04 Monetary and Exchange Variation Insurance and Private Pension Yeartodate of the current year 1/1/2016 to 9/30/2016 7.06 Added Value Received/ Ceded in Transfer 494,891 7.08 Distribution of Added Value 486,422 552,222 7.08.01 Personnel 3,855 7.08.01.01 (2) (7,221) (44) 559,487 554,078 9,222 (3,813) 486,422 552,222 (7,221) Direct Remuneration 3,808 3,340 7.08.01.02 Benefits 47 42 (8,467) (8,467) (2) (44) (7,265) 79 105 7.06.03.06 Other 21,577 (3,918) 7.07 Added Value to be Distributed Yeartodate of the prior year 1/1/2015 to 9/30/2015 7.01.02.03 Profit from sale of permanent assets 7.01.02.04 Other 7.02.03 7.04.01 7.06.03.05 Monetary Variation Judicial Deposits (8,469) 3,382
(Convenience translation into English from the original previously issued in Portuguese) ITR QUARTERLY INFORMATION 09/30/2016 SUL AMÉRICA S/A Financial Statements Company / Statement of Added Value (in thousands of Reais) Code 7.08.01.03 7.08.02 7.08.02.01 Federal (2,130) 7.08.02.02 7.08.02.03 7.08.03.02 Rentals 7.08.03.03 Other 1,233 7.08.04 Return of Capital 7.08.04.02 Dividends Taxes, Fees and Contributions (2,118) Municipal 12 7.08.03 Interest on Shareholders' 7.08.03.01 F.G.T.S Yeartodate of the current year 1/1/2016 to 9/30/2016 7.08.01.04 Other State Interest 102,662 7.08.04.01 Interest on Shareholders' Equity 380,601 7.08.04.03 Retained Earnings (Accumulated Deficit) 380,601 7.08.05 Other 19,743 104,084 92,936 189 Yeartodate of the prior year 1/1/2015 to 9/30/2015 19,713 169 373 436,161 412,075 30 92,394 24,086
(Convenience translation into English from the original previously issued in Portuguese) ITR QUARTERLY INFORMATION 09/30/2016 SUL AMÉRICA S/A Financial Statements / Assets (in thousands of Reais) Code Current Quarter 9/30/2016 Prior year 12/31/2015 1 Total Assets 20,985,711 20,047,606 1.01 Current Assets 15,225,134 14,254,549 1.01.01 Cash and Cash Equivalents 393,412 784,617 1.01.01.01 Cash and Banks 49,208 53,584 1.01.01.02 Cash Equivalents 344,204 731,033 1.01.02 Marketable Securities 11,884,119 10,471,906 1.01.02.01 Marketable Securities Valued at Fair Value 11,575,400 10,429,565 1.01.02.01.01 Securities Trading 5,883,916 5,383,413 1.01.02.01.02 Securities Available for Sale 5,691,484 5,046,152 1.01.02.02 Marketable Securities Accounted for Amortized Cost 308,719 42,341 1.01.02.02.01 Securities Held to Maturity 308,719 42,341 1.01.03 Accounts Receivable 2,132,367 2,141,467 1.01.03.01 Customers 2,132,367 2,141,467 1.01.03.01.01 Receivables 2,132,367 2,141,467 1.01.03.02 Other Accounts Receivable 1.01.04 Inventories 1.01.05 Biological Assets 1.01.06 Tax Recoverable 54,421 122,448 1.01.06.01 Current Tax Recoverable 54,421 122,448 1.01.07 Prepaid Expenses 1.01.08 Other Current Assets 760,815 734,111 1.01.08.01 Noncurrent Assets for Sale 77,700 62,624 1.01.08.02 Assets of Discontinued Operations 1.01.08.03 Other 683,115 671,487 1.01.08.03.01 Reinsurance assets 41,446 57,682 1.01.08.03.02 Deferred Acquisition Costs 618,026 595,960 1.01.08.03.03 Other 23,643 17,845 1.02 Noncurrent Assets 5,760,577 5,793,057 1.02.01 Longterm Assets 5,375,256 5,439,400 1.02.01.01 Marketable Securities Valued at Fair Value 1.02.01.01.01 Securities Trading 1.02.01.01.02 Securities Available for Sale 1.02.01.02 Marketable Securities Accounted for Amortized Cost 1,111,996 1,305,604 1.02.01.02.01 Securities Held to Maturity 1,111,996 1,305,604 1.02.01.03 Accounts Receivable 481,340 567,439 1.02.01.03.01 Customers 481,340 567,439
(Convenience translation into English from the original previously issued in Portuguese) ITR QUARTERLY INFORMATION 09/30/2016 SUL AMÉRICA S/A Financial Statements / Assets (in thousands of Reais) Code Current Quarter 9/30/2016 Prior year 12/31/2015 1.02.01.03.02 Other 1.02.01.04 Inventories 1.02.01.05 Biological Assets 1.02.01.06 Deffered Taxes 824,643 709,796 1.02.01.06.01 Income Tax and Social Contribution 622,285 575,513 1.02.01.06.02 Recoverable Taxes and Contributions PIS/ COFINS 140,468 125,750 1.02.01.06.03 Recoverable Taxes and Contributions OTHERS 61,890 8,533 1.02.01.06.04 () Allowance for Doubtful Accounts 1.02.01.07 Prepaid Expenses 1.02.01.08 Loans to Related Parties 1.02.01.08.01 Loans to Affiliates 1.02.01.08.02 Loans to Subsidiaries 1.02.01.08.03 Credits with Controllers 1.02.01.08.04 Loans to Others Related Parties 1.02.01.09 Others NonCurrent Assets 2,957,277 2,856,561 1.02.01.09.01 Noncurrent Assets for Sale 1.02.01.09.02 Assets of Discontinued Operations 1.02.01.09.03 Judicial deposits 2,519,861 2,427,851 1.02.01.09.04 Reinsurance assets 34,638 69,117 1.02.01.09.05 Deferred Acquisition Costs 402,491 358,397 1.02.01.09.06 Other 287 1,196 1.02.02 Investments 110,613 73,583 1.02.02.01 Equity in Associated Companies 103,064 66,677 1.02.02.01.01 Investments in Affiliates 101,276 64,594 1.02.02.01.02 Investments in Subsidiaries 1.02.02.01.03 Investments in Jointly Controlled 1.02.02.01.04 Others Equity in Associated Companies 1,788 2,083 1.02.02.02 Properties for Investiments 7,549 6,906 1.02.02.02.01 Property for Rent 7,549 6,906 1.02.02.02.02 () Depreciation 1.02.03 Property and Equipment 74,637 82,935 1.02.03.01 Property and Equipment in Operation 74,637 82,935 1.02.03.02 Property and Equipment Leased 1.02.03.03 Property and Equipment in Progress 1.02.04 Intangible Assets 200,071 197,139 1.02.04.01 Intangible Assets 153,292 150,360 1.02.04.01.01 Concession 1.02.04.01.02 Trademarks and Patents 3 3 1.02.04.01.03 Goodwill 1.02.04.01.04 Software 153,289 150,357 1.02.04.01.05 Other intangibles 1.02.04.01.06 () Amortization 1.02.04.02 Goodwill 46,779 46,779
(Convenience translation into English from the original previously issued in Portuguese) ITR QUARTERLY INFORMATION 09/30/2016 SUL AMÉRICA S/A Financial Statements / Liabilities (in thousands of Reais) Code Current Quarter 9/30/2016 Prior year 12/31/2015 2 Total Liabilities and Shareholders' Equity 20,985,711 20,047,606 2.01 Current Liabilities 8,379,777 8,048,038 2.01.01 Social Obligations and Labor 70,599 46,909 2.01.01.01 Social Obligations 2.01.01.02 Labor obligations 70,599 46,909 2.01.01.02.01 Labor Contingencies 70,599 46,909 2.01.02 Suppliers 2.01.02.01 National Suppliers 2.01.02.02 International Suppliers 2.01.03 Tax 277,862 316,318 2.01.03.01 Federal Tax 241,893 282,137 2.01.03.01.01 Income Tax and Social Contribution Payable 72,909 103,362 2.01.03.01.02 PIS / COFINS Payable 20,459 23,045 2.01.03.01.03 Financial Transactions Tax 74,335 66,250 2.01.03.01.04 REFIS Payable 32,180 45,808 2.01.03.01.05 Other Taxes and Contributions 29,758 28,855 2.01.03.01.06 Thirdparty Income Tax 12,252 14,817 2.01.03.02 State Tax 2.01.03.03 Municipal Tax 35,969 34,181 2.01.03.03.01 Services Rendered Tax Payable 35,969 34,181 2.01.04 Loans and Financing 338,980 217,798 2.01.04.01 Loans and Financing 21,637 20,117 2.01.04.01.01 Loans and Financing Local Currency 21,637 20,117 2.01.04.01.02 Loans and Financing Foreign Currency 2.01.04.02 Debentures 316,959 197,681 2.01.04.03 Financing for Lease 384 2.01.05 Other Obligations 1,341,956 1,502,386 2.01.05.01 Related Party Liabilities 15,353 14,813 2.01.05.01.01 Debts with Affiliates 2.01.05.01.02 Debts with Subsidiaries 2.01.05.01.03 Debts with Controllers 2.01.05.01.04 Other Debts with Related Parties 15,353 14,813 2.01.05.02 Other 1,326,603 1,487,573 2.01.05.02.01 Dividends and Interest on Capital Payable 1,145 142,294 2.01.05.02.02 Minimum Mandatory Dividend Payable 2.01.05.02.03 Obligations for Sharebased Payment 2.01.05.02.04 Accounts Payable 130,587 183,382 2.01.05.02.05 Other Accounts Payable 60,274 110,191 2.01.05.02.06 Insurance and reinsurance liabilities 374,610 381,231 2.01.05.02.07 Saving bonds 609,012 626,032 2.01.05.02.08 Managed health 139,485 28,978 2.01.05.02.09 Other 11,490 15,465 2.01.06 Provisions 6,350,380 5,964,627 2.01.06.01 Provisions Tax, Social Security, Labor and Civil 97,851 93,909 2.01.06.01.01 Tax Contingencies 2.01.06.01.02 Labor Contingencies and Social Security 13,248 8,039
(Convenience translation into English from the original previously issued in Portuguese) ITR QUARTERLY INFORMATION 09/30/2016 SUL AMÉRICA S/A Financial Statements / Liabilities (in thousands of Reais) Code Current Quarter 9/30/2016 Prior year 12/31/2015 2.01.06.01.03 Provisions for Employee Benefits 2.01.06.01.04 Civil Contingencies 84,603 85,870 2.01.06.02 Other 6,252,529 5,870,718 2.01.06.02.01 Warranties Provision 2.01.06.02.02 Restructuring Provision 2.01.06.02.03 Provision for Environmental Liabilities and Desactivation 2.01.06.02.04 Technical reserves Insurance 6,252,529 5,870,718 2.01.07 Liabilities NonCurrent Assets of the Sale and Discontinued 2.01.07.01 Liabilities NonCurrent Assets on Sale 2.01.07.02 Liabilities of Discontinued Operations Assets 2.02 NonCurrent Liabilities 7,708,806 7,568,697 2.02.01 Loans and Financing 584,702 860,491 2.02.01.01 Loans and Financing 180,000 180,000 2.02.01.01.01 Loans and Financing Local Currency 180,000 180,000 2.02.01.01.02 Loans and Financing Foreign Currency 2.02.01.02 Debentures 400,956 680,491 2.02.01.03 Financing for Lease 3,746 2.02.02 Other Obligations 50,823 128,838 2.02.02.01 Related Party Liabilities 2.02.02.01.01 Debts with Affiliates 2.02.02.01.02 Debts with Subsidiaries 2.02.02.01.03 Debts with Controllers 2.02.02.01.04 Other Debts with Related Parties 2.02.02.02 Other 50,823 128,838 2.02.02.02.01 Obligations for stock incentive 2.02.02.02.02 Future Capital Increase 2.02.02.02.03 Accounts payable 20,266 21,227 2.02.02.02.04 Other Accounts Payable 107 7,746 2.02.02.02.05 Insurance and reinsurance liabilities 58 99,847 2.02.02.02.06 Other 30,392 18 2.02.03 Deferred taxes 104 2.02.03.01 Income Tax and Social Contribution 104 2.02.04 Provisions 7,073,281 6,579,264 2.02.04.01 Provisions Tax, Social Security, Labor and Civil 2,099,070 1,976,983 2.02.04.01.01 Tax Contingencies 1,779,616 1,657,490 2.02.04.01.02 Labor contingencies and Social Security 66,533 67,513 2.02.04.01.03 Provisions for Employee Benefits
(Convenience translation into English from the original previously issued in Portuguese) ITR QUARTERLY INFORMATION 09/30/2016 SUL AMÉRICA S/A Financial Statements / Liabilities (in thousands of Reais) Code Current Quarter 9/30/2016 Prior year 12/31/2015 2.02.04.01.04 Civil Contingencies 252,921 251,980 2.02.04.01.05 Other 2.02.04.02 Other 4,974,211 4,602,281 2.02.04.02.01 Warranties Provision 2.02.04.02.02 Restructuring Provision 2.02.04.02.03 Provision for Environmental Liabilities and Desactivation 2.02.04.02.04 Technical reserves Insurance 4,974,211 4,602,281 2.02.05 Liabilities NonCurrent Assets of the Sale and Discontinued 2.02.05.01 Liabilities NonCurrent Assets on Sale 2.02.05.02 Liabilities of Discontinued Operations Assets 2.02.06 Unearned Profits and Revenue 2.02.06.01 Unearned Profits 2.02.06.02 Unearned Revenue 2.02.06.03 Grants Investment 2.03 Shareholders' Equity 4,897,128 4,430,871 2.03.01 Capital 2,319,882 2,319,882 2.03.02 Capital Reserves 276,834 262,486 2.03.02.01 Goodwill on Issue of Shares 327,885 328,137 2.03.02.02 Special Reserve Goodwill 25,995 25,995 2.03.02.03 Sale of the Warrant 2.03.02.04 Options Granted 46,564 36,721 2.03.02.05 Treasury Stock (83,697) (88,454) 2.03.02.06 Future Capital Increase 2.03.02.07 Transactions capital goodwill (39,913) (39,913) 2.03.03 Revaluation Reserves 2.03.04 Profit Reserves 1,947,823 1,947,823 2.03.04.01 Legal Reserve 149,119 149,119 2.03.04.02 Statutory Reserve 1,798,704 1,798,704 2.03.04.03 Contingency Reserve 2.03.04.04 Unrealized Profit Reserve 2.03.04.05 Retained Profits 2.03.04.06 Special Reserve Unpaid Dividends 2.03.04.07 Tax Incentive Reserve 2.03.04.08 Additional Proposed Dividend 2.03.04.09 Treasury Stock 2.03.05 Profits / Losses 380,601 2.03.06 Equity Adjustment (42,036) (118,412)
(Convenience translation into English from the original previously issued in Portuguese) ITR QUARTERLY INFORMATION 09/30/2016 SUL AMÉRICA S/A Financial Statements / Liabilities (in thousands of Reais) Code Current Quarter 9/30/2016 Prior year 12/31/2015 2.03.07 Cumulative Translation Adjustments 2.03.08 Other Comprehensive Income 2.03.09 Participation of Noncontrolling Shareholders 14,024 19,092
(Convenience translation into English from the original previously issued in Portuguese) ITR QUARTERLY INFORMATION 09/30/2016 SUL AMÉRICA S/A Financial Statements / Income Statements (in thousands of Reais) Code 3.01 Revenue from Sales and Services 3.01.01 Net premiums Insurance 3.01.02 Other Operating Income Insurance 3.01.03 Premiums, retained contributions and net asset management fee Private pension 3.01.04 Other Operating Income Private pension Current Quarter 7/1/2016 to 9/30/2016 (2,022) 7,149 (5,288) (1,054) (3,125) (954) (2,702) (259) (1,226) (1,883) (7,150) 386,254 (350,966) Yeartodate of the current year 1/1/2016 to 9/30/2016 Same quarter of the prior year 7/1/2015 to 9/30/2015 (6,184) (1,757) Yeartodate of the prior year 1/1/2015 to 9/30/2015 4,145,817 12,072,347 3,899,122 11,050,318 4,280,336 11,946,245 3,986,020 11,187,351 4,893 12,855 8,314 16,166 116,459 359,226 125,415 370,443 261 877 334 868 3.01.05 Saving bonds 13,364 39,994 14,088 44,635 3.01.06 ASO 3.01.07 Asset management 3.01.08 Other Operating Income 3.01.09 Changes in Technical Reserves Insurance 3.01.10 Changes in Technical Reserves Private pension 3.02 Cost of Products and Services Sold 3.02.01 Claims Insurance 3.02.02 Acquisition Costs Insurance 11,780 32,247 8,264 24,074 9,636 28,105 10,180 29,650 8,039 33,373 10,891 33,781 (210,210) (90,640) (163,965) (345,286) (88,741) (289,935) (100,419) (311,364) (3,759,563) (10,986,298) (3,521,462) (10,012,203) (3,165,577) (9,235,356) (2,941,491) (8,372,452) (440,258) (1,294,728) (427,202) (1,212,129) 3.02.03 Other Operating Expenses Insurance (118,542) (363,644) (124,318) (347,214) 3.02.04 Benefit expenses Private Pension 3.02.05 Acquisition Costs Private Pension 3.02.06 Other Operating Expenses Private Pension 3.02.07 Saving bonds 3.02.08 ASO 3.02.09 Asset management 3.02.10 Other Operating Expenses 3.03 Gross Profit 3.04 Operating Income/Expenses 3.04.01 Selling Expenses 3.04.02 General and Administrative Expenses 3.04.02.01 Administrative Expenses 3.04.03 Impairment of Assets 3.04.04 Other Operating Income 3.04.04.01 Equity Income (Expense Net) 3.04.05 Other Operating Expenses 3.04.06 Equity interest 3.05 Income Before Income Taxes and Financial 3.06 Investment Income 3.06.01 Investment Income 3.06.02 Investment Expenses 3.07 Income Before Income Tax, Social Contribution and Profit Sharing 3.08 Income Tax and Social Contribution on Profit (16,836) (35,404) (8,825) (21,402) (7,477) (21,197) (6,736) (15,265) (256) (1,004) (240) (4,674) (7,282) (24,430) (8,056) (23,927) 1,086,049 377,660 1,038,115 (1,073,049) (353,016) (981,389) (359,533) (1,100,270) (372,971) (1,026,869) (359,533) (1,100,270) (372,971) (1,026,869) (1,366) (1,869) 12,806 21,026 (1,366) (1,869) 12,806 21,026 9,933 29,090 24,454 35,288 13,000 24,644 56,726 238,724 672,948 228,512 603,818 655,497 2,033,386 672,705 1,817,263 (416,773) (1,360,438) (444,193) (1,213,445) 274,012 685,948 253,156 660,544 (125,100) (303,237) (45,289) (221,620)
(Convenience translation into English from the original previously issued in Portuguese) ITR QUARTERLY INFORMATION 09/30/2016 SUL AMÉRICA S/A Financial Statements / Income Statements (in thousands of Reais) Code 3.08.01 Current 3.08.02 Deffered 3.09 Net Profit from Continuing Operations 3.10 Net Profit from Discontinued Operations 3.10.01 Net Income / Loss from Discontinued Operations 3.10.02 Gains / losses on Net Assets of Discontinued Operations 3.11 Net Income 3.11.01 Atributable to Owners of the Company 3.11.02 Atributable to NonControlling Interest 3.99 Earnings per Share 3.99.01 Basic Earnings per Share 3.99.01.01 For Preferred Share 3.99.01.02 For Common Share 3.99.02 Diluted Earnings per Share 3.99.02.01 For Preferred Share 3.99.02.02 For Common Share Current Quarter 7/1/2016 to 9/30/2016 Yeartodate of the current year 1/1/2016 to 9/30/2016 148,912 382,711 Same quarter of the prior year 7/1/2015 to 9/30/2015 Yeartodate of the prior year 1/1/2015 to 9/30/2015 (140,100) (380,762) (66,171) (297,769) 15,000 77,525 20,882 76,149 207,867 438,924 148,912 382,711 207,867 438,924 148,263 380,601 206,917 436,161 649 2,110 950 2,763 0.14760 0.37930 0.20620 0.43480 0.14760 0.37910 0.20630 0.43490 0.14550 0.37390 0.20280 0.42640 0.14660 0.37650 0.20460 0.43070
(Convenience translation into English from the original previously issued in Portuguese) ITR QUARTERLY INFORMATION 09/30/2016 SUL AMÉRICA S/A Financial Statements / Comprehensive Income (in thousands of Reais) Code 4.01 4.02 Net Income Company Period Other Components of Comprehensive Income 4.02.01 Unrealized actuarial losses on defined benefit pension plan, net of gains 4.02.02 Gains and (losses) not realized in financial assets available for sale 4.02.03 Unrealized losses on cash flow hedge, net of gains 4.02.04 Realized gains on cash flow hedge, net of losses 4.02.05 Income tax and social contribution related to components of other comprehensive income Current Quarter 7/1/2016 to 9/30/2016 Yeartodate of the current year 1/1/2016 to 9/30/2016 Same quarter of the prior year 7/1/2015 to 9/30/2015 Yeartodate of the prior year 1/1/2015 to 9/30/2015 148,912 382,711 207,867 438,924 16,721 79,862 (37,037) (49,945) (2,001) (2,171) 20,000 78,883 (37,217) (48,892) (7,870) (30,670) 14,914 20,445 4.02.06 Gains and (losses) of Change in Ownership Interest 4.02.07 Other comprehensive income of investees companies recognized by equity method 4.03 Comprehensive Income for the Period 4.03.01 Awarded to Owners of the Company 4.03.02 Awarded to NonControlling Interest 4,591 33,650 (14,734) (19,327) 165,633 462,573 170,830 388,979 164,535 456,977 171,438 388,095 1,098 5,596 (608) 884
(Convenience translation into English from the original previously issued in Portuguese) ITR QUARTERLY INFORMATION 09/30/2016 SUL AMÉRICA S/A Financial Statements / Statements of Cash Flow Indirect Method (in thousands of Reais) Code 6.01.01 Cash generated by operating activities 806,874 747,121 6.01.01.01 Net income before tax and social contribution 685,948 660,544 6.01.01.02 Depreciation and amortization 6.01.01.04 Equity loss in associated companies 858 6.01.01.06 Interest and inflation adjustments on judicial deposits and lawsuits Yeartodate of the current year 1/1/2016 to 9/30/2016 141,895 Yeartodate of the prior year 1/1/2015 to 9/30/2015 6.01 Net cash by Operating Activities (22,766) 494,729 6.01.01.03 Interest and inflation adjustment of issued debentures 104,403 92,987 6.01.01.05 Interest and inflation adjustments on REFIS tax refinance 2,567 5,586 6.01.01.07 Stock options 9,928 6,849 6.01.01.08 Positive equity interest (29,090) (25,312) 6.01.01.09 Writeoff on sale of investments 6.01.01.10 Gain on sale of investments or fixed assets 6.01.01.11 Interest and inflation adjustment on tax credit offset (8,575) (12,379) 6.01.01.12 Interest and inflation adjustment on judicial deposits (144,203) (136,468) 6.01.02.07 Change in salvages for sale 38,622 126,593 (12,206) 6.01.01.13 Other 2,497 1,447 6.01.02 Change in assets and liabilities (829,640) (252,392) 6.01.02.01 Change in marketable securities (1,141,679) (792,787) 6.01.02.02 Change in receivables 87,674 (320,908) 6.01.02.03 Change in taxes (38,319) 7,672 6.01.02.04 Change in reinsurance assets 50,715 (11,990) 6.01.02.05 Change in judicial deposits 52,266 (13,435) 6.01.02.06 Dividends and interest on equity received 33,518 17,395 6.01.02.08 Change in other assets/liabilities 21,510 14,552 6.01.02.09 Change in deferred Acquisition costs (66,160) (140,710) 6.01.02.10 Change deferred taxes assets 6.01.02.11 Change in accounts payable 40,586 120,612 6.01.02.12 Change in loans and financing 6.01.02.13 interest Paid (96,490) (86,383) 6.01.02.14 Change in deferred taxes (104) 209 6.01.02.15 Change in insurance and reinsurance liabilities (106,410) (24,338) 6.01.02.16 Change in technical reserves Insurance 753,741 1,328,359 6.01.02.17 Changes in accrued liabilities for lawsuits (15,866) (8,488) 6.01.02.18 Change in other provisions 6.01.02.19 Income tax and social contribution paid (388,906) (334,627) 6.01.02.20 Withholding income tax on dividends received 6.01.03 Others 6.02 Net cash by Investing Activities (48,279) (76,354) 6.02.01 Increase in capital (735) 6.02.02 Purchase of equity interest (19,608) (21,367) 6.02.03 Selling of equity interest 6.02.04 Purchase of fixed assets and intangible assets (29,335) (59,032) 6.02.05 Selling of fixed assets and intangible assets 664 4,678 6.02.20 Other net proceeds and (payments) 102 6.03 Net Cash by Financing Activities (320,160) (330,771) 41,504 (15,716) (7,525)
(Convenience translation into English from the original previously issued in Portuguese) ITR QUARTERLY INFORMATION 09/30/2016 SUL AMÉRICA S/A Financial Statements / Statements of Cash Flow Indirect Method (in thousands of Reais) Code 6.03.04 Yeartodate of the current year 1/1/2016 to 9/30/2016 Decrease capital Payment 6.03.05 Purchase of shares to hold them in treasury (2,620) (42,673) 6.03.06 Selling of shares in treasury 7,040 Yeartodate of the prior year 1/1/2015 to 9/30/2015 6.03.01 Loans end credit lines 6.03.02 Amortization of loans (166,650) (168,822) 6.03.03 Capital increase Receiving 6.03.07 Options granted exercised 6.03.08 Repurchase of shares in market 6.03.09 Dividends and interest on equity paid (151,813) (144,785) 6.03.10 6.05.02 Refis tax refinance (4,617) (10,231) 6.03.11 Financial lease (1,500) 6.03.20 Other net proceeds and (payments) 6.04 Foreign Exchange on Cash and Equivalents 6.05 Increase/(Decrease) in Cash and Cash Equivalents (391,205) 87,604 6.05.01 Cash and Cash Equivalents at Beginning of Period 784,617 322,196 Cash and Cash Equivalents at End of Period 393,412 409,800 35,740
(Convenience translation into English from the original previously issued in Portuguese) ITR QUARTERLY INFORMATION 09/30/2016 SUL AMÉRICA S/A Financial Statements / Statement of Changes in Shareholders' Equity 01/01/2016 to 09/30/2016 (in thousands of Reais) Code 5.04.12 Account 5.06.05 Additional Dividends Proposed 5.06.07 Interest on Shareholders' Equity 5.06.09 Others adjustments 54 54 5.07 Final Balance Transactions Capital Goodwill 5.04.14 Transactions Capital Negative Goodwill 5.04.15 Noncontrolling Interest 5.06.06 Mandatory dividends 2,319,882 276,834 5.05.03.01 Financial Instruments Adjustments 5.06.01 Increase of Capital Reserves 2,319,882 262,486 Profit reserves Net Income (Losses) 5.06.04 Intermediaries Dividends Capital 5.01 Opening Balance 2,319,882 Capital Reserves, Granted Options and Treasury Stock 5.02 Prior Year Adjustments 5.03 Adjustments Balance 5.04 Capital Transactions with Partens 14,348 1,947,823 380,601 (42,036) 4,883,104 14,024 4,897,128 Participation of Minority Shareholders Equity 1,947,823 (118,412) 4,411,779 19,092 4,430,871 1,947,823 Other Comprehens ive Income Equity (118,412) 4,411,779 19,092 4,430,871 5.04.01 Capital Increase 262,486 5.02.01 Changes in Accounting Practices 5.04.02 Stock Issue Expenses 5.04.03 Recognized Granted Options 9,928 5.04.04 Treasury Stock Acquired 5.04.05 Treasury Shares Sold 7,040 5.04.06 Dividends 5.04.07 Interest on Shareholders' Equity 5.04.08 Additional Dividends Proposed 14,348 (10,718) (2,620) (2,620) 5.05 Total Comprehensive Income 380,601 5.05.01 Net Income 9,928 76,376 456,977 380,601 380,601 5.05.02 Other Comprehensive Income 76,376 76,376 5.05.02.01 Financial Instruments Adjustments 5.05.02.02 Taxes of Financial Instruments Adjustments 5.05.02.03 Comprehensive Income of Equity Affiliates 80,667 80,667 5.05.02.05 Tax Adjustments of Conversion Period 5.05.02.06 Noncontrolling Interest 5.05.03 Reclassification to Results 5.06 Changes in Shareholders' Equity 5.06.02 Recognitional of Revaluation Reserves 5.06.03 Taxes on Recognitional of Revaluation Reserves 5.04.09 Options Granted Exercised 5.04.10 Reversion of Estatutary Reserve 5.04.11 Intermediaries/Interim Dividends 7,040 5,596 462,573 2,110 382,711 3,486 79,862 2,687 2,687 (1,065) (1,065) 1,889 82,556 54 54 9,928 (2,620) 7,040 (10,718) (10,718) 3,630 5.04.13 Mandatory dividends 5.04.16 Supplementary dividends 5.05.02.04 Convergion Adjustments 5.05.02.07 Reversion of Estatutary Reserve 5.05.02.08 Gains and (losses) of Change in Ownership Interest 5.05.02.09 Others adjustments (4,291) (4,291) (4,291) (25) 5.06.08 Realized on Reserves (25)
(Convenience translation into English from the original previously issued in Portuguese) ITR QUARTERLY INFORMATION 09/30/2016 SUL AMÉRICA S/A Financial Statements / Statement of Changes in Shareholders' Equity 01/01/2015 to 09/30/2015 (in thousands of Reais) Code 5.01 Opening Balance 5.04.14 5.04.15 Account 5.04.12 Transactions Capital Goodwill 5.04.13 Mandatory dividends Transactions capital negative goodwill Noncontrolling Interest 5.05.02.03 Comprehensive Income of Equity Affiliates 5.05.02.08 Interim Dividends/Intermediaries 5.05.02.09 Others adjustments Capital 2,319,882 261,172 1,426,147 (61,372) 3,945,829 19,745 3,965,574 Capital Reserves, Granted Options and Treasury Stock 5.02 Prior Year Adjustments 5.02.01 Changes in Accounting Practices (21) (21) 5.06.09 Others adjustments 2,319,882 261,088 436,161 Other Comprehens ive Income Equity 5.03 Adjustments Balance 2,319,882 261,172 1,426,147 (61,372) 3,945,829 5.04 Capital Transactions with Partens (84) (26,141) (24,086) (50,311) 5.04.01 Capital Increase 5.04.02 Stock Issue Expenses 5.04.03 Recognized Granted Options 6,849 6,849 5.04.04 Treasury Stock Acquired (42,673) (42,673) 5.04.05 Treasury Shares Sold 35,740 35,740 5.04.08 5.05 Total Comprehensive Income 5.06.01 Increase of Capital Reserves Participation of Minority Shareholders Equity 19,745 3,965,574 (765) (51,076) 6,849 (42,673) 35,740 5.05.01 Net Income 436,161 436,161 5.06.02 (48,066) 388,095 Other Comprehensive Income (48,066) (48,066) 5.05.03 Reclassification to Results 5.05.03.01 Financial Instruments Adjustments 5.06 Changes in Shareholders' Equity Recognitional of Revaluation Reserves 5.06.04 Intermediaries Dividends 5.06.06 Mandatory dividends 884 388,979 5.06.05 Additional Dividends Proposed 5.06.08 Realized on Reserves 5.07 Final Balance Profit reserves Net Income (Losses) 5.04.06 Supplementary dividends 5.04.07 Interest on Shareholders' Equity 5.05.02 Additional Dividends Proposed (26,141) 5.04.09 Options Granted Exercised 5.04.10 Reversion of Estatutary Reserve 5.05.02.02 Taxes of Financial Instruments Adjustments 5.04.11 Intermediaries/Interim Dividends (24,086) 5.05.02.01 Financial Instruments Adjustments 1,400,006 412,075 (109,438) 107 107 4,283,613 (26,141) (765) (26,906) (24,086) (24,086) 5.04.16 Supplementary dividends (313) (313) (47,556) (47,556) 5.05.02.04 Convergion Adjustments 5.05.02.05 Tax Adjustments of Conversion Period 5.05.02.06 Noncontrolling Interest 5.05.02.07 Reversion of Estatutary Reserve 5.06.03 Taxes on Recognitional of Revaluation Reserves 5.06.07 Interest on Shareholders' Equity 2,763 438,924 (1,879) (1,303) (1,616) 530 637 (49,945) (1,085) (48,641) (304) (304) (304) 19,864 4,303,477
(Convenience translation into English from the original previously issued in Portuguese) ITR QUARTERLY INFORMATION 09/30/2016 SUL AMÉRICA S/A Financial Statements / Statement of Added Value (in thousands of Reais) Code Yeartodate of the current year 1/1/2016 to 9/30/2016 Yeartodate of the prior year 1/1/2015 to 9/30/2015 7.01 Revenues 12,591,030 11,551,588 7.01.01 Sales of Goods, Products and Services 13,063,963 12,281,841 7.01.02 Other Revenues (380,575) (656,650) 7.01.02.01 Changes in Technical Reserves Insurance (90,640) (345,286) 7.01.02.02 Changes in Technical Reserves Private pension (289,935) (311,364) 7.01.02.03 Profit from sale of permanent assets 7.01.02.04 Other 7.01.03 Revenue for the Construction of Owned Assets 7.01.04 Provision for doubtful accounts Reversion/ (Constitution) (92,358) (73,603) 7.02 Input Purchase from ThirdParties (12,183,067) (11,028,298) 7.02.01 Cost Products, Goods and Services Sold (9,734,229) (8,651,707) 7.02.02 MaterialsEnergyServicesOther Third Party (1,941,751) (1,851,395) 7.02.03 Loss/ Assets Value Recuperation (418,082) (437,561) 7.02.04 Other (89,005) (87,635) 7.03 Gross Added Value 407,963 523,290 7.04 Retentions (41,504) (38,622) 7.04.01 Depreciation, Amortization and Depletion (41,504) (38,622) 7.04.02 Other 7.05 7.06.02 Investment Income Net Added Value Produced 366,459 484,668 7.06 Added Value Received/ Ceded in Transfer 1,426,115 1,247,377 7.06.01 Equity interest 29,090 24,454 7.06.03 Other (289,927) (291,180) 7.06.03.02 Net of Coinsurance Ceded Operation 54,751 (7,526) 7.06.03.03 Exchange Variation Loans and Commitments Receivable 7.06.03.04 Monetary and Exchange Variation Insurance and Private Pension (665,727) (515,857) 7.06.03.05 Monetary Variation Judicial Deposits 1,686,952 1,514,103 7.06.03.01 Net of Reinsurance Ceded Operation 85,724 (33,300) 156,540 146,296 7.06.03.06 Other 78,785 119,207 7.07 Added Value to be Distributed 1,792,574 1,732,045 7.08 Distribution of Added Value 1,792,574 1,732,045 7.08.01 Personnel 475,036 420,684 7.08.01.01 Direct Remuneration 376,733 333,224 7.08.01.02 Benefits 80,531 70,832 7.08.01.03 F.G.T.S 17,772 16,628 7.08.01.04 Other 7.08.02 Taxes, Fees and Contributions 720,362 680,653 7.08.02.01 Federal 711,817 674,151 7.08.02.02 State 7.08.02.03 64 Municipal 8,481 6,502 7.08.03 Interest on shareholders' 214,465 191,784 7.08.03.01 Interest 147,691 129,936 7.08.03.02 Rentals 50,402 51,624 7.08.03.03 Other 16,372 10,224
(Convenience translation into English from the original previously issued in Portuguese) ITR QUARTERLY INFORMATION 09/30/2016 SUL AMÉRICA S/A Financial Statements / Statement of Added Value (in thousands of Reais) Code Yeartodate of the current year 1/1/2016 to 9/30/2016 7.08.04 Return of Capital 382,711 438,924 7.08.04.01 Interest on shareholders' Equity Yeartodate of the prior year 1/1/2015 to 9/30/2015 7.08.04.02 Dividends 24,086 7.08.04.03 Retained Earnings (accumulated deficit) 380,601 412,075 7.08.04.04 Noncontrolling Interest on Retained Earnings 2,110 2,763 7.08.05 Other
In the nine months ended of 2016, the Company recorded a profit of R$380,601 (R$436,161 as of September 30, 2015), mainly from its share of profit of R$456,746 (R$554,078 as of September 30, 2015) and net investment expenses ('Investment income/(expenses) of R$87,553 (R$84,212 as of September 30, 2015). In the third quarter of 2016, the Company recorded a profit of R$148,263 (R$206,917 in the same period of 2015), mainly from its share of profit of R$169,590 (R$262,561 in the same period of 2015) and net investment expenses ('Investment income/(expenses) of R$28,885 (R$28,748 in the same period of 2015). The share of profit by subsidiary is as follows: Subsidiaries Period ended 09/30/2016 Quarter ended 09/30/2016 Period ended 09/30/2015 Quarter ended 09/30/2015 Saepar Serviços e Participações S.A... 226,564 70,435 326,396 149,736 Sul América Companhia Nacional de Seguros... 94,418 50,208 97,323 45,207 Sul América Companhia de Seguro Saúde... 135,764 48,947 130,359 67,618 Total... 456,746 169,590 554,078 262,561
Quarterly Results 3 rd quarter 2016 Net income totaled R$148.3 million in 3Q16 and R$380.6 million yeartodate Total operating revenues reached R$4.4 billion (+6.8%), with R$4.3 billion (+7.4%) in insurance operating revenues Total consolidated loss ratio of 76.9% Administrative expenses ratio (% of total revenues) of 8.1%, an improvement of 90 BPS Conference Call October 27, 2016 (Thursday) Portuguese (with simultaneous translation to English) 10 am (Brasília) / 8 am (US/EDT) Brazil: +55 (11) 31931001 or +55 (11) 28204001 USA: +1 (786) 9246977 / UK: +44 (203) 5140445 QUARTERLY RESULTS 3Q16 1