1

Porto SeguroPresentation 2019

2

Index

1 – About us

2 - Differentials

3 – Results and Progress

4 – Forward-looking

3

1. About us

4

Launch Credit Card

History

History and Companies of Porto Seguro

Launch of Azul

New Business Lines:

Life and Pension, Health,

Portopar (Asset

Management),

Consortium*,

PortoSeg (Financing)

Partnership with

Itaú

Health for Pet,

Porto Faz, Bioqualynet,

Oxigênio (accelerator)

and Acquisition of

Auto Portfolios

(Chubb and AIG)

Mr Abraão Garfynkel

bought Porto Seguro

from Bradesco

* Pool Financing for Cars and Houses

44th

Insurer

4th

Insurer

Foundation

App ‘Trânsito +

Gentil’, ‘SOS Link’

and cooperation

agreement with

Travelers

(CONECTA)

Over the last 70 years Porto Seguro has been recognized by its entrepreneurship and high quality services, responding rapidly to the changing environment ...

5

Who we are

Structure and Services

1st Non-life and 4th

largest insurer

group in Brazil

8 Million Clients and 18

Million covered items

Business and Market Position

R$18 Billion

Total revenues

13K employees

35K independent

brokers

13K

exclusive

service

providers

43 Million

inbound calls /

year

1.3 Million home

repair services /

year

2 Million

roadside

assistance

services / year

3.6K Itaú banking

branches (bancassurance

distribution agreement)

R$18 Billion

Market Cap

Market leader in Auto,

Homeowner and

Landlord Rent

Guarantee Insurance

… resulting in the largest non-life insurance group in Brazil underpinned by a robust operational structure, serving about 8 million clients and roughly 18 million covered items

6

Portomed (HMO)

Porto Seguro

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

*Controlled by

Jayme Garfinkel

Free Float

Azul Seguros(Auto)

PSIUPAR 71%

Porto Seguro

Health Insurance

Porto Seguro

Life and Pension

Porto Seguro

Uruguay(Auto, P&C, Financial Risks)

Portoseg(Consumer Finance and

Credit Card)

Portopar(Asset Management)

Porto Seguro

Consórcio (Pool

Financing Auto /House)

Health for Pet

Carro Fácil(Long term car rent)

Insurance Financial Services General Services

Porto Seguro

Dental

Porto

Capitalization

Itaú

Unibanco 43%Porto Seguro

Controllers* 57%

29%

Porto Seguro

Surveillance

Free Float Shareholders Breakdown(March, 2019)

Porto Seguro

Medical Services(Bioqualynet, ASO)

Porto Serviços(Call center, sales support &

Business accelerator)

Businesses Organizational Structure

Porto Seguro

Atendimento

Porto Investimentos(Investments)

Itaú Seguros de

Auto e Residência

CrediPorto Promotora

de Serviços

Porto Renova(Recycle and Dealer Car

Parts)

23%

41%

29%

6%

2%

Brazil EUA Europa Ásia Outros

The Company consists of insurance, financial and general services business lines - Garfinkelfamily holds control and Itaú Unibanco is a strategic shareholder

7Source: Susep / Porto Seguro

* Market Share Health + Dental available until Dec/2017

Portfolio of Products

P & C

10.1%

2.6 million

Market Share

Insured Items

R$ 1.5 billionWritten Premiums

Health + Dental3.2%

791 thousand

Market Share*

Insured Members

R$ 1.5 billionWritten Premiums

Life

2.5%

8.0 million

Market Share

Insured Members

R$ 798 millionWritten Premiums

Consortium

1.7%Market Share

R$ 297 Million

Revenues

143 thousand

Clients

Client’s

average

expenditure

In number

of houses

2nd3th

5.5 million

R$ 10 billion

Auto

27.8%Market Share

Vehicles

Written Premiums

55%# of Total Revenues

# of Total Revenues

# of Total Revenues

# of Total Revenues

# of Total Revenues

8% 8% 4%

Credit Card

2.3%

2.2 million

Market Share

R$ 1.3 billionRevenues

Units

# of Total Revenues

7% 2%

Main Products (2018)

Insurance Non-Insurance

2nd

Diversified top-of-mind portfolio leading in the auto, homeowner and landlord rent guarantee insurance products, posing a significant market share

8

Strategy and Positioning

Strategy

• Focus on retail (individuals and

SME´s) and diversified ‘small’

risks

• Detail-oriented view,

understanding the

particularities of each business

• Deliver high value added solutions

for customers

• Brand segmentation to improve

services provided to client’s

demands

• Differentiated pricing and

risk selection

• Seeking growth which

results in a sustainable

profitability

• Provide great experiences to

customers and brokers with

a ‘personal touch’, even in a

digital environment

• Successful strategies are proved

in the long term

• Innovation and entrepreneurism

are key to our growth

• Brokers are essential for

our success and market

development

Our strategy is build on strong relationships, delivering valuable services and focusing on the broader needs of our customers throughout their lifetimes

2.Differentials

10

2018 2017

17ºInsurance and

Financial Services715 638 12%

18º Retail 656 688 -5%

19º Tourism 518 427 21%

22º Car Rental 461 418 10%

25º Healthcare 441 413 7%

Segment Variation (%)US$ Million

Brand 2018 2017

1º Financial Services 29.788 28.196 6%

2º Financial Services 22.603 22.113 2%

3º Beverage 16.964 16.040 6%

4º Beverage 11.319 11.200 1%

5º Financial Services 10.140 10.327 -2%

US$ MillionBrand Segment Variation (%)

Brand Value

Source: Interbrand (2018)

Most Valuable Brands in Brazil

Porto Seguro is the 17th most valuable brand in Brazil and the 1st in insurance

11

Auto Insurance

Besides the auto insurance,

offers several additional

services to vehicles,

residences and people

Auto Premium

Product focused on

luxury cars with exclusive

services and special

benefits (e.g. concierge)

Auto MulherExclusive services

and benefits for

women

Auto JovemUse of telematics for

young people (between

18 and 24 years)

Auto SeniorFocused on

customers over 60

years of age

Azul Seguros

Auto InsuranceAuto insurance with

basic coverage

Itaú Seguros

Auto Insurance

Mostly offered to Itaú

clients

Brand Segmentation in Auto Insurance

Porto Seguro

Traditional Products

The only insurance company in Brazil that offers different value proposition throughout three brands - specific products for distinct customer´s needs and preferences …

12

Azul Leve

Azul Auto Roubo

Azul Master

Porto Seguro Moto

560k insured vehicles (+13% vs. 2018)

Loss Ratio below 50%

Coverage flexibility (Theft, Collision, Third Party)

Payment flexibility (80% of Azul Leve clients pay

in 10 instalments)

Low cost products

Untapped market and low product

cannibalization

Brand Segmentation in Auto Insurance

Affordable Products

… in addition, it enables us to enlarge insurance penetration – the affordable products already represent 10% of our insured fleet

13

333 Porto – Client remembers Porto

Seguro in emergency situation

Anhangabaú Flood – Porto Seguro

Service provider helps people and

saves non-insured flooded cars

Baby in car – Our call center

operator suggests that the client

breaks the car window to save the

baby

Calling the boss – agent calls the

client’s boss to explain that she would

not be able to work due to a car

accident

Customer Services

Most beloved Brazilian insurance

brand (O Estado de São Paulo)

Most reliable Brazilian insurer (IBOPE +

Seleções Magazine)

Most remembered brand by costumers

in the insurance category (Folha de São

Paulo)

17th most valuable brand in Brazil

(Ranking Interbrand)

Awards Received in 2018 Services Stories

Top customer services, going the extra mile to exceed customer expectations

14

Broker Assistance

Our broker engagement makes the difference to foster growth - Independent brokers dominate Auto, P&C and Health segments in Brazil whilst Internet is still not relevant

Participation of brokers on sales in Brazil

Auto80%

P&C75%

Health93%

Brokers in Porto Seguro

High satisfaction

rates about Porto

Seguro

Represent over

90% of our sales

force

89 8879

70 65

41

14

2 26 25

6

10

5

9 10 155

29

49

81

USA Italy Germany Brazil Spain France UK

Brokers+Agents Bank Channel Alternative Channel¹

Channel Distribution by Country(Life and Non-Life Products, % premiums)

¹ Sales by Internet, phone, e-mail and commercial partnersSource: McKinsey Research 2015 / Porto Seguro

Key Relationship Elements

• “Open doors” policy

• Monthly meetings with Porto Seguro leaders (CEO, officers and managers) and nationwide brokers

• Operations support (mobile, website development, advertisement and training)

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

• Brokers Portal that integrates information, sales and auto service

• PortoServ (polices renewal services available for brokers)

15

Entrepreneurship and Innovation

- 1982: Anti-theft devices (tracking)

- 1984 Anti-theft system (“vacina”)

- 1985: Launch of 24h Call Center

- 1987: Brake Light

- 1994: Kit lanche (Snacks for Clients)

- 1997: Porto Seguro Residence Services

- 2001: Auto Jovem

- 2003: Launch of 24h Automotive Center

- 2004: Porto Palm (Previous Inspection);

333-PORTO Campaign

- 2007: Launch of Porto Seguro Credit

Card (loyalty program)

- 2008: Help/Assistance by Bike

Timeline – Innovative Solutions

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

- 2016: Affordable products (auto insurance); Porto

Oxigênio (Business Accelerator)

-2017: SOS Link

-2018: App ‘Trânsito + Gentil

Innovative developments have been generating a sustainable competitive edge and higher clients retention ratio

16

Sophisticated Risk Selection and Pricing

Driver Profile

Accurate risk analysis

questionnaire

Telemetry

Customer behavior analysis

Automotive Material Parts

Biggest Brazilian automotive

parts purchaser

Track DeviceHigher recovery rates of stolen cars

(more than 200 thousand traced vehicles)

Claims Inspection

Proprietary budget and risk

analysis system

Exclusive Service Providers

Fist-rate quality service and

assistance on claims inspection

Auto

Porto Seguro: 52.7%

(-11.5 p.p.)

Market (ex Porto): 64.2%

P&C

Porto Seguro: 28.7%

(-8.7 p.p.)

Market (ex Porto): 37.4%

Loss Ratio

Porto vs. Market (2018)

Health

Porto Seguro: 78.9%

(-4.5 p.p.)

Market: 83.4%

Source: Susep/ANS

Au

to C

laim

Pro

ces

s

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

17

Cross-Selling

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

Card +Theft Insurance

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

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

Profitability

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

Rent Guarantee insurance)

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

of car parts from Porto Renova

Retention

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

loyalty programs that offer price discounts on the insurance policies

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

Roubo, Azul Leve, etc.

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

Relations between products

Integrated Business Model

The integrated business model goes beyond insurance, raising both clients and brokers retention rate, leveraging cross–selling and enhancing profitability

18

3. Results and Progress

19

Executive Summary - Operational Results 1Q19

1 Taking insurance written premiums and pension contribution into account2 Represents the revenues of Financial Products: Consortium, Credit Card, Financing and Asset Management3 Represents the revenues of Services: Mobile Operator, Surveillance and Monitoring Services, Medical Services, H4Pet, etc

Revenues by Business Lines (R$ Billion)

12.8 13.7 14.3 14.8 15.5

1.11.2 1.3

1.51.7

0.50.5

0.60.7

0.7

2018

16.2

20152014 20172016

15.514.4

17.017.9

CAGR: 6%

Insurance and Pension¹ Financial Businesses² Services³

5%

12%

13%

3.8 3.8

0.4 0.4

0.2 0.2

1Q18 1Q19

4.4 4.4

-0.2%

Total revenues remained stable in the quarter (vs. 1Q18) – although the Health and Financial Risks segments grew double digit, other relevant products such as Auto, P&C and Credit Operation have shown results below historical average

20

Combined Ratio 1Q19* (%)

Insurance Results - Main Results 1Q19

Insurance Written Premiums

Breakdown (%)

Insurance Premiums Growth¹ (%)

1Q19 vs. 1Q18

¹ Insurance Premiums and Pension Gross Funding/ ² Insurance Combined Ratio/ ³ G&A Ratio/ 4 O.E Ratio (Total other operational revenues and expenses / earned premium)*As of 2018, adjustments were made in our financial statements as a result of the Initial Hiring Costs, which are now recorded as Deferred Acquisition Costs (DAC), following the same appropriation system of the results according to the term and risk. Thus, we adjusted the 2018 and beyond numbers in the Press Release (pro forma) to maintain the same historical basis of comparison

Auto

P&C

Pension

-1.8%

Life

Health + Dental

1.9%

11.6%

7.0%

-3.3%

1.9

0.9

CR² 1Q19CR² 1Q18 O.E.4

-0.195.2

Taxes

-0.8

G&A.³

93.2

0.1

Loss

Ratio

Commission

68.1 67.2 66.3 65.7 65.2 63.6

8.8 8.5 8.7 9.2 9.8 10.6

8.6 9.3 9.4 9.8 9.8 9.6

5.4 5.2 5.6

10.5 10.9 10.7 10.0 10.0 10.63.9

2014

4.1

2015

4.8

2016 2017 1Q192018

Health

P&C

Life

Other

Auto

88.7%

95.2%93.2%

87.1%

1Q18 2Q18

91.4%

86.9%

91.7%

3Q18

93.0%

87.8%

4Q18

89.6%

1Q19

Combined Ratio Amplified Combined Ratio

Combined Ratio Insurance

The combined ratio increased 2 p.p., due to the higher loss ratio and commission costs, yet partially compensated by the decrease in the administrative expenses ratio

21

Consolidated Results - Insurance Net Income and ROAE

Results (R$ Million) and ROAE Insurance (%)

178 170

137

212202

15.7%

13.7%

9.9%

14.6% 15.4%

1Q161Q15 1Q181Q17 1Q19

Net Income ROAE (%)

Despite of the challenges faced in the first quarter of 2019, the insurance profitability has demonstrated one of the highest results over the last years

22

Insurance Results - Main Results 1Q19

Auto

Premiums (R$ Million)

Health

Premiums [R$ Million)

P&C

Premiums (R$ Million)

Life

Premiums (R$ Million)

• Market Share* -0.3 p.p. (vs. 1Q18)

• Price Adjustments due to reduction in losses of theft and robbery frequencies

• Insured fleet +300 thousand vs. 1Q18

• Price adjustments boosted growth

• Focus on small and medium enterprises (SME’s) has shown positive results and attractive growth potential

• Porto Homeowner grew 13% (vs. 1Q18), leveraged by sales campaigns and reformulation in assistance plans

• Itaú Homeowner decreased 4%, mainly due to lower sales through the bank channel

• Porto Commercial declined 8%

• Growth influenced by the products Individual Life and Travel insurance

• New initiatives, such as enlargement in coverage, acceptation of new professions, expansion of trainings for brokers and commercial campaigns

2,405 2,361

1Q18 1Q19

-1.8%

323 362

1Q191Q18

+12.0%

350 356

1Q18 1Q19

+1.9%

195 208

1Q18 1Q19

+7.0%

*Source: SUSEP

The insurance products Porto Homeowner, Health and Life have presented greater growth in premiums (+13%, +12% and +7%). However, Auto lost market share by 0.3 p.p., but at the same time added 300 thousand extra vehicles to the insured fleet (vs. 1Q18)

23*Source: CETIP

Insurance Operational Results

Porto Seguro Operational Performance vs. Interest Rates (%)

12.5%

8.6%

91.0%

1Q09

89.2%

12.7%

1Q10

100.1%

90.6% 91.6%

11.2%

97.3%

1Q11

93.2%

10.2%

7.0%

1Q12

97.5% 12.1%100.6% 99.1%

1Q13

98.8%

92.3%

1Q18

94.1%

10.3%

95.2%

1Q14

90.4%

99.4%101.2%

98.9%

14.1%

1Q16

92.4%90.3%

1Q15

88.7%

6.7%

89.6%

6.4%

1Q191Q17

Combined Ratio Amplified Combined Ratio Annualized Average CDI*

In 2018, Porto Seguro has reached the best operational result since the last 10 years, even with the falling interest rates – Along the years, the combined ratio has shown stability

24

Historical Loss Ratio – Auto

Historical Loss Ratio - Auto

60.5%

57.0% 58.1%60.1%

53.3%

58.2%

10.3%12.1%

14.1%12.7%

6.7% 6.4%

1Q151Q14 1Q16 1Q17 1Q18 1Q19

Average: 58.9%

* Quarterly Average CDI, annualized Source: CETIP

Annualized Average CDI* Loss Ratio

The Auto loss ratio in 1Q18 was exceptionally low, so an increase in the ratio was expected for this quarter (1Q19), which ended up occurring in greater intensity due to heavy rains and increased collisions

25

Insurance Results - Administrative and Operational

Expenses

G&A¹ + O.E² Ratio – Porto Seguro

¹G&A = General and Administrative Expenses (Excluding profit sharing)²O.E = Other Revenues – Operational ExpensesPS: As of 2018, adjustments were made in our financial statements as a result of the Initial Hiring Costs, which are now recorded as Deferred Acquisition Costs (DAC), following the same appropriation system of the results according to the term and risk. Thus, we adjusted the 2018 and beyond numbers in the Press Release (pro forma) to maintain the same historical basis of comparison

Insurance G&A and Other Operational

Expenses (O.E) – (R$ Million)

522 501

8488

606

1Q18 1Q19

589

-3%

G&A.¹ O.E.²

18.9%19.5% 19.2%

1Q14 1Q15 1Q16

19.5%

1Q17

16.8%

1Q18

16.1%

1Q19

-3.1 p.p.

Efforts to generate more efficiency have led to a nominal reduction in G&A + O.E. ratio in 1Q19 – over the last 3 years, the intensification in the usage of technology and adjustments of processes resulted in a decrease of more than 3 p.p. in the consolidated administrative and operational expenses ratio

26

Investments Results - Investments and Allocation – 1Q19

¹ Futures exposures included

Allocation¹ (ex-Pension Funds)Quarterly Performance

Revenue from Investments Assets(R$ Million)

Net Asset Value(R$ Billion)

141 160 150 160 164

66 3586 60

95

-28

88

132107

302

3Q181Q18

23

2Q18

155

1Q194Q18

273

378

331

9.1 8.6 9.5 9.6 9.7

4.7 4.74.9 4.9 5.0

2Q181Q18 3Q18 4Q18 1Q19

13.8 13.314.4 14.5 14.7

Insurance Others Pension Funds Other Assets Pension Funds

62.0%52.0%

44.0%38.0% 41.0%

7.0%

7.0%

7.0%8.0% 7.0%

26.0%36.0%

44.0%48.0% 47.0%

3.0%

3.4% 1.8% 2.5% 3.2% 2.5%

4Q18

3.0%

1Q18

3.0%

2Q18 3Q18

3.0% 3.0%

1Q19

Equities

Corporate Bonds

Inflation-Linked Bonds (Tips)

Floating Rate Notes

Fixed Income2.3%

1.5% 2.0% 2.6% 2.3%

151

101

134

95

165

146

98

128

166

154

2Q181Q18 3Q18 4Q18 1Q19

Nominal yield (ex-pension funds)

% of CDI (ex-pension funds)

% of CDI (pension funds included)

The result on financial investments was positively affected by the performance of inflation-linked bonds and fixed income, and to a lesser extent, by variable income assets – the quarterly profitability reached 2.3% (154% of the CDI - ex-Pension)

27

Consolidated Results - Net Earnings and ROAE – 1Q19

ROAE (%)

* For the calculation of the financial result, the effective tax rate was applied, while for the calculation of the operating result, the difference between the net profit without business combination and the net financial result of the effective tax rate were considered** Profitability of the Company’s businesses with adjusted capital (w/o surplus capital) and considering an investment return of 100% CDI

Net Income* (R$ Million)

136 108 125191 165

142 227 193

196

135

15.9%

19.7% 18.9%

22.5%

17.6%

3Q181Q18

387

2Q18 4Q18

278

1Q19

300335 318

+8%

ROAEFinancial Result Operational Result

20.9 21.0

15.917.6

1Q18 1Q19

+0.1 p.p.

+1.7 p.p.

ROAE Adjusted (%)** ROAE (%)

Net earnings leveled up 8% (vs. 1Q18), whereas ROAE reached 17.6% in the quarter – the increase in the quarter is mostly due to the higher performance of Financial and Services Businesses, as well as the increased financial result

28

Net Earnings (R$ Million) and Historical ROAE (%)

131153 147

108

153

231 240216

278300

16.4%16.8%

11.8%8.5%

12.5%

17.8%

16.8%

13.8%

15.9%

17.6%

1Q131Q111Q10 1Q181Q12 1Q191Q14 1Q15 1Q16 1Q17

CAGR: 9.6%

Net Earnings ROAE (%)

Porto Seguro has delivered solid results and achieved a consistent profitability, even in unfavorable economic periods – the net earnings have grown 10% YoY since 2010, showing that the profitability in 1Q19 was 3 p.p. higher than the historical average

Consolidated Results - Historical Profit and ROAE

29

Stock Variation

¹Ranking based on Negotiability Index, which takes into consideration the number of trades and the trading volume at B3 / Source: B3, Bloomberg

76 76 73 71 70 69 68 69 68 68 70 67 67

Performance PSSA3 vs. IBOVESPA(Last 12 Months)

Multiples (03/31/2019)

Negotiability Ranking¹ from PSSA3 on the Market(Accumulated Negotiability 12 months)

Evolution Shareholders of PSSA3 (Since

IPO)9

positions

higher

Type of Investor Mar-19 Nov-04

Individual / Legal Entity 11,621 2,243

Institutional Investors 914 70

Total 12,535 2,313

Number of Investors

*From November 2004 (IPO) until April 2019 Source: Porto Seguro

14.5 x

Price Earnings

2.3 x

Price Book

Market Cap

R$ 17.4 Billion

R$ 53.93

Stock Value

PSSA3 IBOVESPA

677% 301%

Historical Variation* PSSA3 x Ibov

18.2%

12.9%

Mar-18 May-18 Jul-18 Sep-18 Nov-18 Jan-19 Mar-19

PSSA3

IBOVESPA

Since IPO, our stock value has more than doubled Ibovespa – Moreover, the number of investors has strongly increased and our negotiability ranking has enhanced as well

30

• The real estate usage was optimized

(ex. home office, call center and

~R$100 MM in properties offered for

sale, R$ 23 Million sold in 4Q18)

Initiatives in 2018

• Capex reduction of 36% or

151 R$ MM (vs. 2017)

• Extra dividends paid with a value

of R$ 1.5 Billion in 2018

Capital Base

• Reducing capital surplus from 47% to

40% from the adjusted shareholders

equity (vs. 2017)

% Distribution of Dividends (Payout)

60.0%50.0%

35.0% 35.7% 40.0%

111.0%

8.8% 4.4% 3.7% 3.4% 4.6% 8.6%

2013 2014 2015 2016 2017 2018*

Payout¹ Dividend Yield²

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

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

Increased dividend payments and thoughtful usage of our real estate have right-sized the Company’s balance sheet

31

4.Forward-Looking

32

Portfolio diversification

and cross-selling

Opportunities and Challenges

Source: Porto Seguro

Acceleration in

digitalization

Expansion of insurance

penetration

Increase operational and

capital efficiency

Development of the new

businesses in our portfolio

New Auto positioning

implementation model and

nationwide-expansion

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

33

Insurance Penetration by Country (2017)

Insurance Industry Penetration

Brazilian Insurance Penetration by Product

2006

2.8%

Chile4.9%

USA

7.1%

Canada7.2%

Spain5.4%

Italy

8.3%

France

9.0%

UK

9.6%

Germany

6.0%

South Africa

13.8%

China4.6%

Japan

8.6%

Australia

5.8%

30%25%

12% 10% 10%6%

Insurance Penetration- Brazil *

2017

4.0%

Insurance Market CAGR (2007 - 2018)

Pension 13.0%

Dental 11.6%

Homeowner 12.6%

Life 10.9%

Health 9.7%

Auto 9.2%

Market 10.7%

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

Source: Swiss RE

Top Insurance Products Development

The Brazilian insurance penetration rate increased, but it is still relatively low compared to developed (and some emerging) economies

34

The significant vehicle growth potential in Brazil tends to benefit the Auto insurance industry in the long run

0

1.000

200

400

600

800

2008 109 11 1512 13 201714 16

+60%

0%

Source: Brazil Data - – IBGE, DENATRAN; USA Data - United States Census Bureau, Bureau of Transportation Statistics

Vehicles per 1,000 Inhabitants

•Mature markets, such as USA, Canada, Germany, France and UK have presented little to no growth in vehicle penetration

•There is still a significant growth potential for vehicle penetration in Brazil:

• Penetration level (~300 vehicles / 1,000 inhabitants) is significantly lower than mature markets (~850 in USA)

• Steady growth of the last 10 years expected tocontinue for the following years

• Even after the economic crises and new trends such as Uber, penetration has increased in Brazil

Main Components for Growth - Auto Insurance Industry

~3x

35

50.634.0

1.9 14.7

15.2

14.3

0.5

0.4

65.8

48.3

2.4

15.2

23%

30%

22%

3%

Total Light Vehicles Heavy Vehicles Motorcycles

Non Insured (Million) Insured (Million) Penetration

Source: Susep; Autoseg; Anfavea; Empresômetro

Main Components for Growth - Auto Insurance Industry

3.5

3.0

2.3 2.1

2.62.7

0.2 0.2 0.1 0.1 0.1 0.1

1.61.4

1.2

0.9 0.81.0

2013 2014 2015 2016 2017 2018

Light Vehicles Heavy Vehicles Motorcycles

24.829.4

32.4 33.3 32.634.7 35.8

2012 2013 2014 2015 2016 2017 2018

Auto Insurance Written Premiums (R$ Billion)

Auto Insurance Penetration (# vehicles) Brand New Vehicles Sales (# vehicles; million)

The auto insurance market remained resilient during the crisis - the current car sales rebound associated with the low penetration rate offer good opportunities for the sector

36

Industry Auto Loss Ratio vs. Interest Rates¹

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

70%

71%

64%

65%

62%

64% 61%

18%19%

13%

10%

9%

12%

6%

00-02 03-05 06-08 09-11 12-14 15-17 2018

Loss Ratio Interest Rates

Loss Ratio Market Behavior - Auto Insurance Industry

Along the years, the fluctuations in interest rates have been relevant to the industry price adjustments, leading to a strong correlation with the loss ratio

37

National Footprint – Auto Insurance

Source: Susep

NORTH

NORTHEAST

MID WEST

SOUTHEAST

SOUTH

2008 2018 Var. p.p.

15.1% 17.1% +2.0 p.p.

2008 2018 Var. p.p.

12.4% 21.7% +9.3 p.p.

2008 2018 Var. p.p.

20.2% 27.8% +7.6 p.p.

BRAZIL

2008 2018 Var. p.p.

27.4% 34.9% +7.5 p.p.

2008 2018 Var. p.p.

5.2% 15.3% +10.1 p.p.

2008 2018 Var. p.p.

9.4% 18.8% +9.4 p.p.

Regional Market Share – Porto Seguro (Consolidated)

Porto Seguro is already amongst the top auto insurance positions in all regions of the country – however, there is still growth potential, especially out of São Paulo

38

Digital Transformation

Self-handling

Services

+ 1 Million of users

downloaded our APPs

(Auto, Health, Credit Card

and Consortium)

Chatbot

Innovation on Customer

Services (e.g. searching

for hospitals network,

claims status and

payments follow-up)

Broker’s program that works

especially on sales arising

from the internet, focusing

on new customers attraction

OnCorretor

Broker's digital inclusion

program to professionalize

the sales actions through

the internet

Multichannel

Health for Pet

Auto Homeowner

Travel

Insurance

Motorcycle

Process Improvement Sales by Internet

Capitalization in digital technology will enhance customer experience, create valuable support for brokers and improve efficiency

39

New Businesses

Businesses under Development and Initiatives

Source: Porto Seguro

Carro Fácil45 Million

More than 3 thousand

Revenues

Active Contracts

+202% vs. 2017

H4Pet23.5 Million

More than 30 thousand

Revenues

PETs

+46% vs. 2017

Porto Faz19 Million

87 thousand

Revenues

Services provided in 2018

+52% vs. 2017

Increase scale gains

Optimize process

Improve communication

and positioning

Optimize process

Develop a sophisticated

digital delivery platform

Innovate the process of

buying services

Scale-up by cross-selling

Capturing opportunities and developing non-mature businesses

40

Key Takeaways

Insurance market in Brazil is still under-penetrated, creating relevant long-term growthopportunities

Many business lines enable us to innovate, differentiate and exceed client expectations (eg.Financial Services , Auto, etc..)

The ongoing portfolio diversification through higher growth in businesses with bettermargins should help to increase results

Adding up the operational efficiency gains to our differentiated pricing and risk selectionallows us to strengthen our competitive advantages

Economical volatilities, like fluctuation in interest rates, can be offset by improvements inoperational results – proved by long term results

Valuable brand, solid relationships and emphasis on customer-oriented services lead tosuperior profitability

Digitalization can provide unique customer experiences in the future

The company has shown to be resilient over the years, delivering good results even inunfavorable economic periods

The untapped market opportunities aligned with our initiatives to improve insurance products, expand diversification and operational efficiency can lead to better profitability in the years to come

41

Contact

Investor Relations Department

Alameda Barão de Piracicaba, 618

11th floor

Campos Elíseos

01216-010

São Paulo, SP, Brazil

Phone:

(55 11) 2393-7092

(55 11) 2393-7093

E-mail:

gri@portoseguro.com.br

www.portoseguro.com.br