OREANDA-NEWS. In the second quarter and in the first semester of 2014, the Company performance was supported by a better financial income and satisfactory operational results. Total revenues and written premiums respectively grew 16% and 12% in the quarter and 17% and 14% in the semester, mainly boosted by the higher number of insured items. The insured fleet attained 4.8 million (+11%), a growth of 492 thousand vehicles and 215 thousand residences insured, reaching the peak of 1.9 million (+13%).

In the insurance operation we highlight the auto products, which increased 12% in the quarter and 14% in the semester. Emphasizing Azul brand growth of 20% in the quarter and semester and Porto Seguro P&C products rise of 25% in both periods.

The Combined Ratio reached 95.9% in the 2Q14 and 97.3% in the 1H14. In the quarter the combined ratio grew 1.4 p.p.

when compared to the same period of 2013, mainly explained by the loss ratio increase in the auto segment, which was impacted by robbery and theft pressure. On the other hand, loss ratio in the health segment declined 3.3 p.p. as a consequence of our strategies to improve the product portfolio profitability. The G&A ratio rose 0.2 p.p. in the quarter and 0.1 p.p. in the semester due to advertising expenses that were anticipated to the first semester. Nevertheless, excluding this expenses the G&A ratio would reduce 0.2 p.p. in the 2Q14 and 0.4 p.p. in the 1H14, thanks to the process improvement and operation enhancements.

The revenue from financial services and general services companies grew by 20% in both periods chiefly explained by credit operation evolution (credit cards and loans), which raised 25%. The number of credit cards has raised 351 thousand units, achieving 1.5 million cards.

The financial result presented an increase of 92% explained by a higher averaged CDI in the quarter (+40% vs. 2Q13) and

due to a better relative returns. Excluding pension plans, total yield on the investment portfolio in 2Q14 was 2.78% (111% of the CDI) and 5.04% (101% of the CDI) in the year. Finally, we have reached a ROAE of 18.1% in the quarter, remaining practically stable and 14.8% in the semester (+0.8 p.p.). Also, net Income was BRL 219 million in the 2Q14 and BRL 372 in the 1H14, an increase of 13% and 23% respectively (2014 x 2013).