SulAmerica: Recurring Net Income Increases 57.8% to R$84.1 Million in 2Q09

Friday, Aug 14,2009, 9:34:19 AM Click:

Sul America S.A. (Bovespa: SULA11) announced today its results for the second quarter of 2009. Net income reached R$ 84.1 million on a recurring basis, up 57.8% over the same quarter the previous year, while annualized ROAE was 14.0% in the quarter. In 6M09, recurring net income reaches R$188.4 million, up 9.5% on 6M08.

Total insurance premiums move up 16.1% in 2Q09, reaching R$2.1 billion (up 7.6% over 1Q09). In 6M09, insurance premiums increased 12.8% to R$4.1 billion.

Health insurance premiums increased 9.0% over 2Q08 (up 2.0% over 1Q09), with group health portfolio up by 16.1% (up 4.4% on 1Q09), led by growth of 21.8% in policies to small and medium-sized enterprises (SMEs).

Auto insurance premiums climb 22.5% over 2Q08 (up 23.1% over 1Q09), while insured fleet expands to 2.0 million vehicles in the quarter.

Total loss ratio reaches 76.5% in the quarter, increasing 410 bps over 2Q08 and 420 bps over 1Q09. Health insurance closes the quarter with a loss ratio of 85.2%, up 700 bps over 2Q08 and 650 bps on 1Q09. Auto insurance loss ratio declines to 62.9%, 290 bps down over 2Q08 (down 100 bps over 1Q09). Total loss ratio for the 6M09 reaches 74.4%, increasing 340 bps over 6M08.

Combined ratio reaches 101.1%, up 60 bps on 2Q08 and 320 bps on 1Q09. In 6M09, the combined ratio increased 150 bps to 99.5%.

Return on the investment portfolio comes to R$172.4 million in 2Q09, corresponding to an average yield of 119.5% of the CDI rate (versus 108.1% of the CDI rate in 1Q09).

SulAmerica - Press Relations Superintendence Solange Guimaraes / Daniela Campos 55 (11) 3779.7614 / 5045 E-mail: imprensa@sulamerica.com.br Andreoli MSL Gustavo Graca Telephone: 55 11 3169.9312 E-mail: gustavo@andreolimsl.com.br

Sul America S.A.

CONTACT: Solange Guimaraes or Daniela Campos, both of SulAmerica - PressRelations Superintendence, +011-5511-3779-7614, +011-5511-3779-5045,imprensa@sulamerica.com.br; or Gustavo Graca, Andreoli MSL,+011-5511-3169-9312, gustavo@andreolimsl.com.br, for Sul America