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Main Ratios of the Local Reinsurer Market from January to August

2012 and 2011

Source: SUSEP, Terra Brasis Re

Index:

Introduction ........................ 3

Proposal of New Method of

Analysis of Brazilian

Reinsurers ........................... 4

Brazilian General Insurance

Market ................................ 7

Brazilian Reinsurance Market 9

Results of Local Reinsurers . 16

Group: Property ................. 22

Group: Financial Risks ........ 23

Group: Rural ..................... 24

Group: Liability .................. 25

Exhibit 1: General Insurance

Definition .......................... 26

Exhibit 2: List of Technical

Terms ............................... 27

Exhibit 3: Main Ratios from

Local Reinsurers ................ 28

Acknowledgements ............ 29

This issue of Terra Report is special because it marks the

beginning of the company’s operation. Taking advantage of this

opportunity, we boldly propose a new way of analyzing the results

of a reinsurance operation, of which the main ratios are found in

the table below.

The reinsurance premium volume ceded by Brazilian insurers on a

12-month aggregate ending in August 2012 shows a volume of

R$6.5 bn compared to R$5.1 bn from August 2011, which is an

increase of 27%.

The make-up of the Brazilian reinsurance market seems relatively

stable. For the 12-month period ending in August 2012, the IRB

retains a participation of 48%, while other local reinsurers retain

21% and admitted and occasional companies, 31%.

The Combined Ratio of local reinsurers is relatively stable when

compared to the same period of the previous year, in spite of a

significant increase in the market’s gross loss ratio. The significant

increase of the loss ratio was partially compensated by the

recovery of the retrocessions.

August 2012

Shareholders: An equity investment by the International Financial Corporation (IFC), financial arm of the World Bank for the private sector, was approved and is underway.

Terra Report Publication on the Brazilian Reinsurance Market

Issu

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Published on: December 4th, 2012

Terra Brasis Resseguros Terra Report August 2012

2

August 2012 Terra Report Terra Brasis Resseguros

3

Introduction

Dear Reader,

On October 4th, we received, with much happiness and enthusiasm, the definitive license from SUSEP

for Terra Brasis Re to begin operating as a Local Reinsurer.

And, we’re already operating!

Offers are analyzed, terms and conditions discussed, e-mails are exchanged, and acceptances and

refusals are effectuated on a daily basis.

Terra Brasis Resseguros is effectively a Brazilian Local Reinsurer in operation!

Even with all the enthusiasm, we could not allow this instance to go by without thanking the entire

market for the support we have received.

The incentive that the Terra Brasis team received from the Insurers, Reinsurers, Brokers, our

Retrocessionaires, and all our friends and colleagues from the market during the lengthy period of our

process for obtaining authorization was fundamental in order for us to go through it while maintaining

our enthusiasm. We thank them all, and are certain that we shall not disappoint them.

This issue of Terra Report is special because it marks the inception of our operation. Taking advantage

of this opportunity, in the first part of this report, we enthusiastically and boldly propose a new way of

analyzing the results of a reinsurance operation. The application of this methodology to all Local

Reinsurers can be seen in Exhibit 3.

The reason for this boldness is that the new plan of accounts implanted by SUSEP in the Brazilian

market changed the basis for the calculation of all the performance analysis, from Retained Premium to

Gross Premium.

This change, together with other accounting changes that were also implanted by the new plan,

generates the need for the creation of new concepts for loss ratio, expense ratio, combined ratio, etc.,

consistent with the new basis for calculation and other accounting regulations.

We hope our proposal will be widely discussed and improved by the market. The remainder of the Terra

Report will follow its traditional approach. As always, initially, it provides a brief description of the

development of the Brazilian insurance market. Then, it analyzes the Brazilian Reinsurance market and

the Brazilian Local Reinsurers. Finally, it reviews each reinsurance group with an emphasis on the most

important lines in terms of premium.

We hope our readers continue to appreciate this work as much as we appreciate developing it. As

always, any criticism, comments, or suggestions are very welcome. Once more, thank you for your

support.

Happy reading,

Paulo Eduardo de Freitas Botti Chief Executive Officer Terra Brasis Resseguros


4

Proposal of New Method of Analysis of Brazilian Reinsurers

Initially, we believed it was important to present an outline of the main accounting flows referring to the

insurance and reinsurance operation under the old plan of accounts and the current one.

Flowchart examples of the Main Accounting Items of Insurers and Reinsurers.

Source: Terra Brasis Re

As may be noticed, the result, in absolute value, for both insurers and reinsurers, is the same under the

previous plan of accounts and the current one. The same is not true with regard to the ratios.


5

In the chart below, the performance evaluation ratios are shown in the previous plan of accounts and in

the current one. Some important points that we will describe below, are illustrated in this analysis.

Flowchart example of the Main Accounting Items of Insurers and Reinsurers


Here, we may see that the ratios present results that differ between the Current Plan and the Previous

Plan. The Combined Ratio of the hypothetical insurer increased from 81.7% to 89%. With regard to

reinsurers, the Combined Ratio increased from 81.4% to 84.9%. Cession Ratios also change. As to

insurers, they decrease from 40% to 34 % and with regard to reinsurers, they decrease from 30% to

28%.

Our proposition for reinsurers is that the following model be adopted:

Flowchart Example of the Main Accounting Items from Insurers and Reinsurers



6

Thus, using our hypothetical Insurer and Reinsurer, we would have:

Example of Brief Summary of Results From Reinsurers

Source: Terra Brasis Re, SUSEP

From this issue onwards, we will use this methodology for the analysis of local insurers and reinsurers.

We also added Exhibit 3 to Terra Report, which contains a summary of the ratios described herein for

quick reference.


7

Brazilian General Insurance Market

The Brazilian General Insurance Market segment, which excludes VGBL and DPVAT according to the

methodology described in Exhibit 1, maintained its growing volume during the first eight months of

2012. For the 12 months ending in August 2012, the Brazilian market generated R$63.6 bn in insurance

premium, compared to R$ 58.2 bn in 2011. The annual growth rate in reference to August 2012 is

15.7% compared to 15.3% referring to the period ending in December 2011.

Evolution of Insurance Written Premiums (R$ bn) Growth of Insurance Written Premiums

Source: SUSEP, Terra Brasis Re, 12-month aggregate Source: SUSEP, Terra Brasis Re, 12-month aggregate

The loss ratio obtained as a result of the loss occurred over earned premium of the income statement

of all insurers from the Brazilian market,1 is 51.7% in August 2012, compared to 53.1% in December

2011.

Loss Ratios / Earned Premium Commercial Expense / Earned Premium

Source: SUSEP, Terra Brasis Re, 12-month aggregate

Note: Percentage Values Referring to the Official Insurance Market.


Note: Percentage Values referring to the Official Insurance Market.

The chart that represents the evolution of the commercial expense ratio shows a slight retraction,

with the ratio at 23.3% in August 2012 compared to the peak of 25.1% in March 2012.

1 In previous issues, the report was using loss ratio data originating from the Table of Operations and

not from the Income Statement, which, in hindsight, we no longer consider to be adequate given the change in the plan of accounts.


8

The Administrative Expense Ratio reached 15.6% in August 2012, near its historical minimum of

15.4% in reference to April of this year.

Administrative Expense / Earned Premium Reinsurance Result / Earned Premium

Source:: SUSEP, Terra Brasis Re, 12-month aggregate

Note: Percentage Values Referring to the Official Insurance Market


Note: This variable only exists as of the implementation of SUSEP’s New Plan of Accounts..

The Combined Ratio, including the reinsurance result, is at 92.1% in reference to the 12 months

ending in August 2012, which is a significant reduction from the peak of 100.4% in reference to August

2011.

Combined Ratio, Including Reinsurance Result



9

Brazilian Reinsurance Market

Since the last issue of Terra Report, the reinsurance premium volume generated by the Brazilian market

accelerated significantly. In the first four months of 2012, the premium volume of the Brazilian

Reinsurance market was similar to that of the same period in the previous year, which is approximately

R$1.93bn. From May to August of this year, the volume issued was considerably greater than that of the

previous year, being that the aggregate premium volume written in 2012, until August, is at R$4.29 bn

compared to R$3.65 bn of the same period in the previous year. This is the equivalent of an increase of

18%.

The 12-month aggregate reinsurance premium volume ending in August 2012 shows an increase of

27%, from R$6.5 bn compared to R$5.1 bn from August 2011. These numbers exceed the estimate of a

premium of R$6.2 bn for 2012 made in the last issue of Terra Report.

Premium Ceded in Reinsurance from January to

August of Each Year (Gross of Commission, R$ bn)

12-Month Aggregate Reinsurance Premium Ceded

(Gross of Commission, R$ bn)

Source: SUSEP, Terra Brasis Re, January-August of Each Year. Source: SUSEP, Terra Brasis Re, 12-month aggregate

The annual growth of the reinsurance premium returned to levels above 20%, indicating 26% for

August 2012.

The proportion of reinsurance premium over insurance premium is at its highest level since September

2009, registering 10.3% for August 2012. This may be a first indication that, with the gradual

sophistication of the Brazilian reinsurance market as a result of the end of the monopoly regime,

Brazilian insurers are starting to make more use of the tool in order to manage their portfolios.

Growth of Reinsurance Premium Ceded Reinsurance Premium / General Insurance Premium



10

In line with what was observed in the reinsurance premium, the volume of the co-insurance premium

also increased significantly between May and August of this year. The volume of the aggregate co-

insurance premium in 2012, until August, is R$1.11 bn, compared to R$0.89 bn in reference to the

same period of the previous year, which reflects an increase of 25%. In the 12-month aggregate, the

volume for August 2012 is R$1.74 bn compared to R$1.17 bn, which is an increase of 49%.

Co-insurance Premium Ceded from January to August (R$ bn)

Co-insurance Premium Ceded, 12-month Aggregate (R$ bn)

Source: SUSEP, Terra Brasis Re, January to August of Each Year. Source: SUSEP, Terra Brasis Re, 12-month aggregate

In August 2012, the 12-month aggregate co-insurance premium represented 2.7% of the general

insurance premium volume, compared to 2.1% in reference to August 2011. The percentage of co-

insurance premium over reinsurance premium is 26.6% in August 2012 compared with 22.8% in August

2011.

Growth of Co-insurance Premium Ceded Co-Insurance Premium / General Insurance Premium

Source: SUSEP, Terra Brasis Re, 12-mnoth aggregate Source: SUSEP, Terra Brasis Re, 12-month aggregate

The gross reinsurance premium volume written by local reinsurers, including current non-issued risk,

resulted in R$2.72 bn up August 2012, compared to R$2.11 bn of the same period in the previous year,

which is an increase of 29%.


11

Gross Reinsurance Written Premium by Local Reinsurers from January to August

Gross Reinsurance Written Premium by Local Reinsurers ( 12-month Aggregate)

Source: SUSEP, Terra Brasis Re, R$ billions Source: SUSEP, Terra Brasis Re, 12-month aggregate

For the 12-month period ending in August 2012, local reinsurers received $4.5 bn in reinsurance

premium, compared to R$2.9 bn for the period ending in August 2011, an increase of 55%.

Growth in Reinsurance Premium Ceded to Local Reinsurers by Brazilian Insurers


Below is the summary of the reinsurance premium flows described above for the period from January to

August 2012 and 2011. The premium volume has accelerated since the last issue of Terra Report. In the

period from January to April 2012, the premium volume generated by the insurance market was

basically the same as the previous year, whereas we now see an increase of 18% in the period from

January to August.

In 2012, premiums ceded in the local market increased 14% until April, and now show an increase of

29% until August.


12

Premium Ceded by Brazilian Insurers and Premium Received by Local Reinsurers from January to August (R$ mm.)

Fonte: SUSEP, Terra Brasis Re

The flowcharts that follow show the volume of reinsurance and retrocession premium, gross of

commission, in the Brazilian market in the first eight months of 2012 and 2011.

Premium Flow in the Brazilian Market from January to August 2011 and 2012 (Gross of Commission, R$ mm)

Source: SUSEP, Terra Brasis Re, R$ millions, reinsurance gross of commission numbers

We used the same technique and the same premises for seasonal analysis described in the April 2012

issue of Terra Report in order to estimate the volume of premium again for 2012. The results are shown

in the following flowchart. These revisions, based on new data, show an increase in the premium

volume expected for the Brazilian market.


13

Premium Flow in the Local Market from January to August 2011 and 2012 (Gross of Commission, R$ mm)


With the data from August, we estimated that in 2012, the Brazilian insurers should generate R$6.6 bn

in reinsurance premium, compared to $6.2 bn with data from April. We estimated that the local market

should receive R$4.4 bn in premiums, compared to the previous estimate of R$4.1 bn.

Premium Written by Local Reinsurers, Premium Ceded by Brazilian Insurers (R$ mm)


Estimate of Volume of Premium Ceded by Brazilian Insurers Through Different Methods



14

The flowchart below illustrates the premium flow of the Brazilian Market for 2007-2011, as well as our

expectation for 2012.

Premium Flow in the Brazilian Market from 2007-2012 (Gross of Commission, R$ mm)


The new data did not lead to any major revisions with regard to the Market-Share expectation for 2012.

We continue not projecting major changes during 2012. It was projected that the IRB’s participation in

the market should end the year at 45%, slightly above the 43% referring to the end of 2011, and that

the new Local Reinsurers’ participation in the market should decrease from 23% to 22%, while

admitted/occasional reinsurers participation should decrease from 34% to 33%.

The series of aggregate premiums in the last 12 months show similar results. For the period ending in

August 2012, the IRB retains 48% market participation, other local reinsurers 21%, and Admitted and

Occasional reinsurers 31%.


15

Reinsurance Premium Market Share (gross of commission ) Generated by Brazilian Reinsurers


Gross Reinsurance Premium Generated by Brazilian

Cedants

Participation in the Gross Reinsurance Premium

Generated by Brazilian Cedants

Source: SUSEP, Terra Brasis Re, R$ billions, 12-month aggregate Source: SUSEP, Terra Brasis Re, 12-month aggregate

For the 12 months ending in August 2012, the rate of retention fell slightly in relation to the same period in

2011. As a whole, the market retained 55% of the premium compared to 62% in the period ending in

August 2011. This drop is a consequence of the smallest retention observed by the IRB, which obtained a

retention of 56% for August 2012 compared to 69% in August 2011. Other Local Reinsurers retained 53%,

versus 53% in August 2011.

Gross and Retained Reinsurance Premium in the

Local Market

Retention in the Local Market by Type of Company



16

Results of Local Reinsurers

As described in the December 2011 issue of Terra Report, in order to analyze the results of Local Reinsurers, it was necessary to alter the metrics usually used, adapting them to SUSEP’s New Plan of

Accounts. Therefore, in the charts below, for the values of previous years up to May 2011, the criteria of SUSEP’s Old Plan of Accounts are used, and for the following months, the criteria of the New Plan of

Accounts are used.

Loss Ratio: Occurred Losses/ Earned Premium Commerical Expense/ Earned Premium


In 2012, the loss ratio experimented by the local reinsurer market, represented by the 12-month

aggregate Loss Ratio, is higher than in previous years. For the period ending in August 2012, the index

shows a value of 89% compared to 69% in December 2011.

The commercial expense ratio, with 7% in August 2012 compared to 6% in December 2011, and the

administrative expenses ratio, with 11% in August 2012 compared to 10% in December 2011, are stable.

Administrative Expense / Earned Premium Results of Retrocession / Earned Premium


The Results of Retrocession ratio shows an inversion, probably because loss recoveries from

retrocessionaries surpass the premium paid to them within the period. For the period ending in August 2012, the ratio is at -9%, compared to 15% in December 2011.


17

The Combined Ratio (including results of retrocession) remains below 100% in spite of a

significant increase in the loss ratio. For August 2012, the ratio shows a value of 100% compared to

101% in December 2011. Such result may be considered positive for the administration of local

reinsurers, since the significant increase of the loss ratio experienced does not seem to result from

operational losses.

Combined Ratio, with Results of Retrocession


For the 12-month period ending in August 2012, Local Reinsurers produced a net profit of R$ 702m

compared to R$ 543m for 2011 and R$ 469 mm for the 12 months ending in August, 2011.

The R.O.E., defined herein as dividing the 12-month aggregate net profit by the average property

estimate of the period, is 18.2% for August 2012 compared to 17.1% for December 2011.

Aggregate Net Profits (R$ mm) Return on Equity (R.O.E). (%)



18

The tables below represent the Summary of Results of Local Reinsurers for August 2012 and December

2011.

Summary of Results–Local Reinsurers for August 2012 and August and December 2011 (R$ mm,) Local Market, IRB, and Other Locals



19

Summary of Results - Local Reinsurers for August 2012 and 2011 (R$ mm,) by Company



20

Summary of Results- Local Reinsurers for August 2012 and 2011 (R$ mm,) by Company


Zurich Alterra Swiss

08/2012 08/2011 08/2012 08/2011 08/2012 08/2012 08/2012

Authorization Date 05/jan/12 17/jan/12 00/jan/00

Assets 238 127 123 102 108 112 119

Shareholders Equity 102 102 81 83 104 84 118

Total Reserves 43 9 21 6 19

Premium Reserves 26 8 17 6 17

Claims Reserves 16 1 5 2

Gross Reinsurance Premium 80 21 17 6 0 13 0

Commission -17 -4 0 0 0 -4 0

Non-Issued Risks in force 0 0 3 0 0 0 0

International Operations 0 0 0 0 0 0 0

Accepted Retrocession 7 0 0 0 0 7 0

Written Premium 69 17 20 6 0 16 0

Change in Reserves -17 -14 -13 -6 0 -17 0

Earned Premium 53 2 7 0 0 0 0

Losses Incurred -72 -1 -5 0 0 -2 0

Commercial Expenses -2 0 -1 0 0 0 0

Other Operational Expenses -1 0 0 0 0 0 0

Retrocession Result 20 0 0 0 0 2 0

Administrative Expenses -4 -4 -5 0 -1 -2 -3

Tax Expenses -2 -1 0 0 0 0 0

Industrial Result -8 -4 -4 0 -1 -4 -3

Financial Result 9 9 5 5 7 5 1

Equity Pickup 0 0 0 0 0 0 0

Operating Result 1 5 1 4 6 1 -2

Non-recurring Gains 0 0 0 0 0 0 0

EBT 1 5 1 4 6 1 -2

Income Tax 0 -1 0 -1 -2 0 0

Social Tax 0 0 0 -1 -1 0 0

Profit Sharing 0 -1 0 0 0 0 0

Net Income 1 4 1 3 3 1 -2

Loss Ratio 136% 55% 66% 44%

Comm. Exp/Earned Premium 3% 7% 14% 6%

Adm. Exp / Earned Premium 8% 166% 73% 582%

Tax Exp / Earned Premium 3% 28% 5% 180%

Other Exp / Earned Premium 2% 1% 0% 0%

Expense Ratio 16% 203% 92% 769%

Retro Result/Earned Premium -38% 15% 0% 20%

Combined Ratio 115% 274% 158% 833%

(Non-Rec+Fin+Eq) /Earned Prem -17% -401% -70% -9808%

(Income & Social tax+Profit share) 1% 68% 5% 3609%

R.O.E. 1.0% 5.3% 1.0% 4.8% 4.1% 1.4% -3.2%

Annual Earned Premium/SE 78% 3% 13% 0% 0% 0% 0%

31/jan/11 04/apr/11

Austral Chartis


21

Results by Lines of Business

As done in the previous issue of this report, information deriving from the Table of Operations (TO)

from SUSEP’s databank was used, in order to analyze the different lines of business. It is important to

mention that discrepancies exist between the values of the Table of Operations (TO) and the Summary

of Yearly Results (DRE) from insurance and reinsurance companies.

General Insurance and Reinsurance Premiums from January to August 2011 and 2012 (R$ mm)

Source: SUSEP, Terra Brasis Re, data obtained from the Table of Operations (TO)

As mentioned in previous issues, the groups that are evident in the reinsurance market are not the most

significant in the insurance market. As to the insurance market, the groups of Auto and Life insurance

(including individuals) are the most significant. However, these groups do not require a significant

volume of reinsurance. For the reinsurance market, the Property, Financial Risks, Rural, and Liability

groups are the most significant.


22

Group: Property

Insurance Premium Growth of Insurance Premium


Reinsurance Premium Growth of Reinsurance Premium

Source: SUSEP, Terra Brasis Re, R$ billions, 12-month aggregate Source: Terra Brasis Re, SUSEP, 12-month aggregate

Reinsurance Premium / Insurance Premium Split of Reinsurance Premium by Type of Company

Source: SUSEP, Terra Brasis Re, 12-month aggregate Source: SUSEP, Terra Brasis Re, R$ billions, 12-month aggregate

Loss Ratio: Insurers Loss Ratio: Local Reinsurers



23

Group: Financial Risks










24

Group: Rural


Source: SUSEP, Terra Brasis Re, R$ billions, 12-month aggregate Source:: SUSEP, Terra Brasis Re, 12-month aggregate








25

Group: Liability




Source: SUSEP, Terra Brasis Re, R$ billions, 12-month aggregate Source:: Terra Brasis Re, SUSEP, 12-month aggregate

Renisurance Premium / Insurance Premium Split of Reinsurance Premium by Type of Company





26

Exhibit 1: General Insurance Definition

In line with previous issues of Terra Report, the modalities DPVAT and VGBL were taken from the

general insurance segments, as listed below.

In the official segmentation of the Brazilian Market, DPVAT and VGBL are contained within the so-called

General Insurance, as illustrated in the chart on the bottom left. For the analysis of this report, the

classes related to DPVAT of the General Insurance category were excluded, since we believe they

should be a separate category. The classes related to VGBL, which Terra Brasis believes should be

presented together with other modalities of Pension, were also excluded.

2011: Official Market Segmentation by Premium Issued (R$ bn)

2011: Segmentation Used by Terra Brasis By Premium Issued (R$ bn)

Source: SUSEP, CNSeg, ANS, Terra Brasis Re Source: SUSEP, CNSeg, ANS, Terra Brasis Re


27

Exhibit 2: List of Technical Terms

In this issue we began creating a dictionary with the definitions that we used in this report for certain reinsurance terms. We intend to add to the list as the work progresses and believe that this would be worthwhile since several reinsurance terms have been used with different meanings.

Brazilian General Insurance Market: It is the market comprising insurance operations in accordance with official regulation by SUSEP, except those classified in the DPVAT and VGBL modality.

Brazilian Reinsurance Market: It is formed by operations comprising cessions of reinsurance ceded by Brazilian insurers and assumed by reinsurers that are authorized to operate in Brazil and classified as local, admitted, or occasional.

Local Reinsurance Market: It is formed by operations comprising reinsurance business assumed by local reinsurers.

Written Premium or Gross Written Premium: It is the value of the premium written by Insurers or Reinsurers, before reinsurance or retrocession deductions. In the case of Reinsurers, as of May 2011, the Commissions paid to Cedants are deducted from this value.

Net Written Premium: It is the premium written less the premium for reinsurance or retrocession.

Reinsurance Premium or Gross Reinsurance Premium: The same as Written Premium or Gross Written Premium by the reinsurers. Although commissions, by definition, are deducted from this value, temporarily in this Terra Report we indicate whether the reinsurance premium is net or gross of commission.

Net Reinsurance Premium: It is the premium written by the reinsurer less the ceded retrocession premium. As per the above item, temporarily in this Terra Report, we indicate whether the reinsurance premium is net or gross of commission.

Commission: It is the value that the reinsurer or retrocessionaire pays to the cedant, with the objective of covering part of the expenses incurred in the administration and production of the business.

Brokerage: It is the value paid to the broker (“broker,”) in compensation for the intermediation of the insurance, reinsurance, or retrocession.

Overriding: It is the part of the commission paid to cedants in addition to their incurred commercial expenses.


28

Exhibit 3: Main Ratios from Local Reinsurers

Main

Ratios

Fro

m L

oca

l Rein

sure

rs f

rom

January

to A

ugust

2012

Sourc

e:

SU

SEP, Terr

a B

rasi

s R

e


29

Acknowledgements

It is with enthusiasm that we continue to publish our market report, Terra Report, a research piece covering the Brazilian Reinsurance Market, which we share with our clients, partners, and colleagues.

We are immensely grateful to SUSEP for making its databank available to the public. We also thank ANS and CNSeg for information used herein. The report also contains analyses and adjustments made internally by Terra Brasis and in this way, we apologize in advance for possible inaccuracies contained in this publication.

We hope our readers appreciate this work as much as we appreciate developing it. Without a doubt, it is extremely gratifying to be involved in the Brazilian reinsurance market at such an important moment of its development. Any criticism, comment, or suggestion for this work is very welcome.

Terra Brasis Re Terra Report Junho 2011

30 .

Contacts

Name Title Telephone Email

Paulo Eduardo de Freitas Botti Chief Executive Officer

+55 11 3320 5056 [email protected]

Bernardo Nolasco Diretor of Investments


Carlos Eduardo De Mori Luporini Chief Financial and Operations

Officer


Carlos Roberto De Zoppa Technical Director


Rodrigo Botti Chief Risk Officer


Paulo Hayakawa Superintendent of Underwriting

General Lines


Luiz Pestana Superintendent of Underwriting

Financial Lines


Agosto 2012 Terra Report Terra Brasis Resseguros

31

This document was prepared by Terra Brasis Re SA ("Terra Brasis Re") for

informational purposes only.

Terra Brasis Re, its partners, companies under common control, its directors,

employees and agents do not express any opinion, do not guarantee, nor

assume any responsibility for the adequacy, consistency, or completeness of any information contained herein or any omission regarding this report. This

publication is also not designed to be a complete statement or summary of markets or strategies discussed in this document. None of the people mentioned

in this paragraph shall be liable for any loss or damage of any kind arising from

the use of the information contained herein, or which may be obtained by third parties by any other means. Terra Brasis Re should not be construed as

providing financial, tax, or legal advice.

The information contained herein was obtained from public sources, and Terra

Brasis Re has not conducted an independent verification of this information. Any projections or forecasts contained in this report are based on subjective

estimates and assumptions about events and circumstances that have not yet

occurred and are subject to significant variations. Thus, it is not possible to ensure that results from any projections or forecasts contained in this document

will be effectively verified.

This publication is only valid on the date hereof, and future events could

undermine its conclusions. Terra Brasis Re assumes no responsibility to update,

revise, amend or cancel this publication due to any future event, unless previously requested.

It is not the obligation of Terra Brasis Re to implement the procedures in this document, nor is Terra Brasis Re responsible for any inaccuracies in any

negotiations or transactions relating to this report. No investment or financial decision should be based solely on the information presented here.

All information contained in this report should be kept strictly confidential and

can only be released, quoted, or reproduced in whole or in part, with the prior written consent of Terra Brasis Re for people who have agreed to treat such

information as confidential.

Offices

São Paulo Av. Presidente Juscelino Kubitschek, 1700, 12º Andar Itaim Bibi, São Paulo, SP 04543-000

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