Sustainability and Innovation in Emerging Markets

1. Insurance Frontiers Sustainability and Innovation in Emerging Markets Patrick de Larragoiti Lucas Chairman, SulAmérica

2. Emerging Markets: poised for growth • Sound economic environment and increased income per capita • Improved insurance regulations and supervision • Product and distribution innovation • EM premiums growing fast: CAGR of 11.0% (2001 -2010) • versus 1.3% of developedeconomies • Outperformance is expected to continue Emerging Markets Total Premiums – USD 650bn 2010 figures - CAGR (2001-2010) EasternEurope USD 88bn (6.4%) Asia USD 336bn (18.0%) MiddleEast USD 31bn (11.6%) Africa USD 67bn (4.3%) Latin America USD 128bn (6.9%) Source: Swiss Re - 2011

3. Emerging Markets Premiums per capita still considerably low InsurancePremiums per capita (US$ - 2010) Share of World Market (% in 2010) Emerging Markets Developed Economies Source: Swiss Re Source: Swiss Re

4. Brazil within Latin America Country hasthelargestpotential for insurance LatAmSelected Countries - InsurancePremiums (US$ billion - 2010) Source: Swiss Re

5. Region open to foreign insurers Domestic players remainstrong Insurance Premiums (life and non-life) (R$ billion) • Penetration of foreign insurers in Latin America is significant • But domestic companiesretain a strong share • In Brazil, domestic insurers are the market leaders CAGR +12.4% Source: CNSeg Insurance Premiums (life and non-life) (top 15 companies) Brazilian Foreign Source: SUSEP (2011)

6. Growing penetration Less penetrated than in most developed countries 1 Taiwan - 18.4% 2 South Africa- 14.8% Penetration (premium as a % of GDP) 3 Netherlands - 12.4% 4 United Kingdom - 12.4% 5 Hong Kong - 11.4% 17 Italy - 8.1% 18 United States - 8.0% 27 Spain - 5.4% 30 India - 5.1% 38 Chile - 4.0% 39 China - 3.8% 44   Brazil -  3.5% of GDP Source: SUSEP and IBGE Brazil 55 Russia - 2.3% Source: Swiss Re (2010)

7. Private healthcare Increased penetration over population Membership Penetration Dental Plans membership Private Healthcare membership (millions of members) (members as % of population - 2011) (millions of members) 48.3 16.8 +53% 25.0% +500% 7.8% 31.1 2.8 Source: ANS and IBGE

8. 2008 2009 2010 2011 Automobile Large uninsured fleet / opportunity Auto insurance premiums New car sales (million) (R$ billion) Penetration of vehicles +10.3% CAGR +11.7% CAGR (inhabitants per vehicle) 3.4 Source: SUSEP Source: FENABRAVE 6.5 21.3 2.3 4.5 15.3 3.6 1.2 Insured fleet Non-insured fleet Source: SUSEP 33% 59% Insured fleet Source: ANFAVEA 2011 94% 67% 41% Vehicles from 0 to 6 years old Vehicles over 11 years old Vehicles from 7 to 11 years old 6% Brazil Argentina USA Mexico

9. Life and Pension Wealth accumulation phase just begun Pension and VGBL Contributions (R$ billion) +17.6% CAGR Pension and VGBL Reserves (R$ billion) +21.3% CAGR Source: FenaPrevi 2011

10. Virtuous cycle for Brazil Positive correlation between economic expansion and insurance Macroeconomic indicators • Increasinginvestments • Lowinterest rates • Inflationundercontrol Foreigndirectinvestment(U$ billion) Source: Bacen Selic Rate (YE) Inflation (IPCA) Decreasing Inequality 9.3% • Increasing GDP per capita • Low unemployment 6.8% GDP per capita (PPP) (U$ thousand) Source: IPEA, IHS Global Insight, Ernst & Young Terco Unemployment

11. Social inclusion: upward mobility Growing middle class • Between 2003 and 2009, more than 30 million Brazilians entered middle class • Middle class comprehends now over 50% of the population Social classes distribution (% ofpopulation) Source: CPS/FGV

12. Population: change in demographics Economic stability favors consumption Age Structure 1980 Age Structure 2010 Age Structure 2030 • No inflation memory Women Men Source: IBGE, Deloitte

13. Insurance Opportunities in Brazil Oil & Gas capital expenditures Private investments Olympic Games 2016 (RJ) World Cup 2014 Gov’t Development Plan 2 R$220 billion R$100 billion R$23 billion R$24 billion R$1,590 billion Source: Bacen, IBGE, O Globo, Folha de São Paulo, The Economist

14. Microinsurance in Brazil “Harvest time” • Regulated in 2011, set the rules for operations, brokerageandcorrespondents • Microinsurance is currently beingsoldatfavelas in Rio • Premiums range from R$2 to R$50 per policy per month • Market potential is 128 millionpeople Source: Cenfriand Valor Econômico

15. Innovative Distribution • Brokers (~60,000) are still the most important channels • Alternative channels such as internet, retail stores, post offices, utility companies and other affinity groups are gaining ground • Innovation is supported by technological advancements Notebook & Tablet Smartphone POS Machine Teleunderwriting Social Media

16. Sustainability taken seriously 2009 Company joins ISE index of BM&FBovespa SulAméricaInvestimentos signs PRI 2012 SulAmérica becomes a Global Compact signatory and a GRI OS member 2008 First Annual Report following GRI guidelines 2010 1st GEE Emissions Inventory (presented in 2011) 2012 SulAmérica joins UNEP-FI and is one of the founding signatory companies for the PSI 2011 2nd GEE Emissions Inventory (to be presented in June 2012) Sustainability Committee reports directly to the Board of Directors 2009 Establishment of the Sustainability Committee and Corporate Sustainability area 2009 Water-based auto paint project Digital Bill payment system Green Insurance Protocol 16

17. Challenges & Opportunities VGBL for healthcareandeducation Product and services development aligned to the new C and D classes Brazil is currently in the second phase where people seek protection The third phase is when people accumulate wealth and plan for retirement, which will create several opportunities

18. Thank you Patrick de Larragoiti Lucas Chairman, SulAmérica