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2011
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Porto Seguro S.A.
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2011 ANNUAL REPORT
2011
Table of Contents
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ANN
01. A Message from the CEO
03
02. ABOUT US
05
Corporate Profile
05
Our History
08
Business Strategy
10
Acknowledgements
11
Corporate Governance
15
Corporate-Governance Structure
16
03. OUR PRODUCTS
19
Porto Seguro Auto
19
Itaú Auto e Residência
20
Azul Seguros
21
Health & Dental Insurance and OHS & Outpatient Services
21
Basic Lines
21
Annuities and Retirement Plans
22
Porto Seguro Aluguel
23
Porto Seguro Transportes
23
Financing and Credit Card
24
Consórcio
24
Protection and Monitoring
25
Porto Seguro Investimentos
25
04. SUSTAINABLE COMPANY
26
Sustainability at Porto Seguro
26
Corporate Social Responsibility
26
Environmental Responsibility
32
Cultural Responsibility
35
05. BUSINESS PERFORMANCE
36
Industry Scenario and Prospects
36
Our Performance
37
MISCELLANEOUS INFORMATION
42
GLOSSARY
43
CREDITS
44
Porto Seguro S.A.
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2011 ANNUAL REPORT
01.
A MESSAGE FROM THE CEO
In 2011, earned premiums for the auto insurance segment added up
to BRL 5,747 million, a BRL 312 million or 5.8% increase over the BRL
5,434 million in 2010. In turn, earned premiums for the health insurance
segment worked out at BRL 852 million in 2011, with a BRL 137 million or
19.2% increase over BRL 715 million in 2010. In 2011, our policyholders and
their dependents amounted to 567,000, a 27% increase over the 447,000
figure in 2010. In 2011, our net income added up to BRL 580 million,
recording a 6.9% decrease over the BRL 623 million we earned in 2010.
This decrease is mainly due to an increase in retained loss expenses
and the necessary administrative costs to sustain our distinguished
service strategy.
The year 2011 was also filled with investments. We repositioned the Itaú
Auto e Residência brand, which now relies on special benefits for Banco Itaú
account holders. We continued to invest in the improvement of our research
park and our operational and business relations with insurance brokers.
Additionally, we enhanced both results and operational structure of
other businesses, such as credit card, financing, consórcio, monitored
alarms, among others. Income from such businesses grew by about
27% over 2010.
The year 2011 was filled with accomplishments and challenges.
The environment of economic growth in Brazil, in spite of the crisis
in developed countries, continued to propel the insurance market,
which saw a nearly 16% growth over 2010. The insurance industry
penetration in Brazil represents development opportunities, chiefly
due to the expansion of the emerging Brazilian middle class.
I would also like to emphasize that we established Porto Seguro
Telecomunicações S.A., a company that provides phone services. We
optimized the internal management of cell phone costs. In addition,
we seized the opportunity of bringing together our insurance
products to add mobility to our clients and insurance brokers.
Within this context, 2011 continued to single us out in terms of quality
of service, service delivery, and convenient solutions for more than
six million families and corporate clients. We work with three auto
insurance brands: Porto Seguro, Itaú Auto, and Azul Seguros. With
these, we meet the various needs of our different audiences, our
insurance brokers, and our policyholders.
Within the context of campaigns and actions, I would like to
emphasize the Porto Vias campaign, a service that provides drivers
with real-time traffic information over notebooks, smartphone
applications, or desktop computers. The driver, either in São Paulo or
Rio de Janeiro, chooses the best way to get to his or her destination.
I would also like to emphasize the Trânsito+Gentil movement, a Porto
Seguro Auto initiative for drivers to avoid aggressive behavior and
treasure a more tolerant attitude as well as a quality-of-life program for
employees, training for service providers, and policyholder benefits,
such as cultural and food discounts.
We ended 2011 with nearly 4.1 million insured vehicles and a total of
over 11.6 million items covered by our products, which represents a
32% increase over the previous year. Earned premiums amounted to
BRL 8,426 million, with a BRL 661 million or 8.5% increase over the sum
of BRL 7,765 million in 2010, which does not factor in the Brazil-specific
Roth individual retirement accounts (VGBL, acronym in Portuguese).
I would like to thank all of our employees, providers, and insurance brokers,
who did their job with dedication and commitment, during 2011.
In addition, we took on the challenge of managing Itaú Seguros’ tow
truck and guaranteed hire car services. Now, three companies are
managed by only one platform. The integration of auto insurance
assistance resulted in a 28% growth in the volume of tow truck and
guaranteed hire car services that are managed by Porto Socorro.
Jayme Brasil Garfinkel
CEO, Porto Seguro
Our results also singled us out in terms of growth of total revenue, which,
including net finance revenue, added up to BRL 10,155 million, a growth of
BRL 979 million or 10.7% over the BRL 9.176 million during the previous year.
Porto Seguro S.A.
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2011 ANNUAL REPORT
2012 VISION STATEMENT
In 2012, we would like to be acknowledged as a beautiful, lean,
healthy, and mythical corporation:
MISSION STATEMENT
Our mission is to underwrite risks and provide services with a
family feel that exceeds expectations while ensuring quickness at
competitive rates with social and environmental responsibility.
Where customer service with genuine interest is ever-present;
“What good is it to build skyscrapers if there are no human souls to live
in them.”
Érico Veríssimo
That is a benchmark for applying ethical principles contained in our
Corporate Philosophy and for being oriented towards simple and
deep concepts;
OUR PHILOSOPHY
The Porto Seguro Corporation is a collection of people that includes
employees, managers, stockholders, brokers, service providers, and
business partners that, individually and collectively, guide their
actions by the following core values, examples, and undertakings:
That is a benchmark for designing creative solutions, seizing
opportunities fully, and being present in the everyday lives of clients
from all levels of income;
That provides employees, brokers, partners, and service providers
with conditions to learn, grow, and hone their skills according to
our corporate goals;
1. Cooperation, transparency, justice, and customer service with
genuine interest are our core values;
2. The pursuit of perfection requires humility, determination, and patience;
That respects the competition and works towards protecting and
developing the segments where we operate;
3. Everyone is entitled to participate and state his or her opinions
through dialogue according to egalitarian and ethical principles;
That is composed of companies, product divisions, and corporate
departments that work together, grow continuously, and are
interconnected by shared management principles;
4. Mistakes happen and must be immediately owned and rectified as a
learning, improvement, and growth opportunity;
That relies on governance and planning processes as well as
internal controls that empower proactivity, self-control, and
autonomy with responsibility, quickness, and common sense;
5. Jobs must be performed enthusiastically and taken as an
opportunity to grow;
6. Dedication must go beyond the duties of your role;
That is sound and admired because of our profitability and our
financial potential and that relies on a vast and loyal sales network;
7. You must not use your job for personal gain and you must keep a
no-nonsense attitude with no cult of personality;
That is a benchmark for client satisfaction, growth, organizational
climate, and social responsibility in the markets where we operate.
8. We are duty-bound to make simple, flexible, agile, and integrated
managerial efforts;
9. We must prepare successors that are able to expand our horizons;
10. Professional fulfillment must come as a result of the encouragement
of self-development and the search for new challenges.
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Porto Seguro S.A.
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2011 ANNUAL REPORT
02.
ABOUT US
Corporate Profile
We operate in the insurance market, which, via our direct and indirect subsidiaries – Porto Seguro Cia., Porto Seguro Saúde, Porto Seguro Vida e
Previdência, Porto Seguro Uruguay, Azul Seguros, Itaú Auto e Residência, among others –, and provide individuals, families, corporations, and government
bodies in Brazil, especially in the states of São Paulo and Rio de Janeiro, and Uruguay with a wide range of products. Currently, we are four largest
insurance carrier and the leading auto and homeowners’ insurance company in Brazil. In Uruguay, we are the second biggest auto insurance company.
Since our company was established in 1945, we try to expand our businesses by using innovation, which is applied to the improvement of products and
services and the development of new solutions that meet the needs of all of our clients. Based on this strategy, our portfolio is growing constantly, which
turns Porto Seguro into a brand that is ever-present in the everyday lives of people at all times. Bike Serviços, Serviços Avulsos, Porto Vias, and Auto Mulher
are examples of customized products and services that are a part of the everyday lives of a growing number of clients, who have various needs.
Our corporation is composed of nineteen (19) companies, which are divided into insurance carriers, financial-services firms, and general service
providers. In 2003, we expanded our footprint in the insurance market by acquiring Azul Seguros – previously known as AXA Brasil –, with options for
the auto, property, and life segments (with the exception of retirement products).
In 2009, we associated with Itaú Unibanco to create a new company, Itaú Seguros de Auto e Residência. In 2011, we established Porto Seguro
Telecomunicações S.A., a phone service provider.
Group Companies
LINES OF INSURANCE
Porto Seguro Companhia de
Seguros Gerais
Established in 1945, this is the
main company in the group. It
operates auto, property, renters’,
and inland marine insurance
portfolios.
Porto Seguro Seguros
del Uruguay S/A
Established in 1995, it is the second
largest auto insurance company
in Uruguay. It works with the lines
of auto, homeowners’, fire and
theft, renters’, farm machinery,
glass, liability, and inland marine
insurance, among others.
Porto Seguro Vida e
Previdência S/A
Porto Seguro Saúde S/A
Established in 1986, it exclusively
operates in the lines of life
insurance and individual retirement
arrangements.
Itaú Seguros de Auto
e Residência S/A
Azul Seguros
After acquiring Axa Seguros, it
became a part of the Company in
2004 under the corporate name
Azul Seguros. It operates in the
line of auto insurance.
Porto Seguro S.A.
This company has been operating
in the healthcare industry for
more than 10 years. It works with
health and dental insurance for
corporations as well as small and
midsized businesses.
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2011 ANNUAL REPORT
It became a part of Porto Seguro
in 2009 after an association
with Banco Itaú Unibanco. It
operates in the lines of auto and
homeowners’ insurance in Brazil.
OTHER SEGMENTS
Portoseg S/A
Established in 2002, it operates in
the payday loan, working capital,
vehicle financing and refinancing,
and investment segment.
Porto Seguro Proteção e
Monitoramento Ltda.
Established in 1998, it operates in
the around-the-clock property,
transportation, and vehicle
monitoring and tracking industry.
Porto Seguro Serviços Médicos
Ltda.
Established in 1996, it provides
outpatient health services
and prepares and implements
occupational-health programs.
Portoseg Promotora de
Serviços S/C Ltda.
It has been renewing and
prospecting for new businesses for
insurance brokerage firms for more
than 10 years.
Portopar Distrib. de Títulos e
Valores Mobiliários Ltda.
Established in 1996, Porto Seguro
Investimentos specializes in
asset management and financial
consulting.
Porto Serviços S/A
6
With over 25 years in business, it
operates in the automobile, realestate, and professional equipment
consórcio business.
Crediporto Promotora
de Serviços Ltda.
Established in 2007, it distributes
Portoseg’s products.
Porto Seguro
Atendimento S/A
services to corporate and residential
condominiums.
Porto Seguro S.A.
Porto Seguro Administradora
de Consórcios Ltda.
2011 ANNUAL REPORT
outbound and inbound
telemarketing, communications,
call center, and general customer
support services.
Groundbreaking Products and Services
In 2011, we broke new ground and expanded our range of products and services. Highlights included:
Porto Seguro Consórcio – Professional Equipment: we expanded our businesses to include consórcio transactions for
professional equipment.
Porto Seguro Eventos: this line of insurance includes a wide range of coverage for organizers, attendees, and associates. Basic
coverage insures you against property or bodily damage to third parties or the policyholder’s employees arising from several
perils, such as cancellations or accidents.
Portable Equipment Insurance: this line expanded coverage and now covers the iPad and similar devices, insuring you
against perils such as aggravated theft or larceny, fire, lightning, explosion, and other consequences, as well as additional
coverage against electrical damage.
Porto Seguro Residência e Equipamentos Portáteis: this free disposal service is now available for electronic devices. This
service is delivered in association with Descarte Certo, a Brazilian company specializing in picking up and recycling cell phones,
smartphones, CPUs, printers, laptops, camcorders, among others.
Porto Seguro Shipping Insurance: this provides you with insurance coverage when shipping goods. It gives you a set of basic
and additional coverage for trucking and air carriage. This insurance policy protects you against several unforeseen events.
Porto Seguro Residência Veraneio: this homeowners’ insurance policy contains vacation home-specific coverage. It insures
you against several types of perils, from fire to explosion to theft to electrical damage to personal and family liability.
Seguro Residencial Itaú: this insurance is now offering you environmental services that contribute to environmental
protection. These include: environmental education, where policyholders learn how to use natural resources and avoid waste,
and smart disposal, where we pick up items that are no longer being used, such as furniture, electronics, and appliances.
Porto Seguro Viagem: this insurance policy gives ample coverage to travelling policyholders. You can buy this insurance policy for
domestic or international trips and include medical assistance, luggage tracking, trip interruption and cancellation services, as well as
a travel schedule, recommendations and reservations for hotels, restaurants, and parks, car rental discounts, among others.
Porto Seguro Telecomunicações: we cover the entire Brazilian territory with our mobile virtual network operator (MVNO)
footprint. We enter this industry with Datora Telecom and TIM is our network provider in all Brazilian states. We intend to optimize
our internal management of cell phone costs and take the opportunity to bring together our insurance products to add mobility
to our clients and insurance brokers. We are now deploying our infrastructure and establishing our business model, but MVNOs
are expected to attract 16 million subscribers in Brazil and reach USD 1 billion in sales within the next five years.
CORPORATE VALUE
ADDED
2011 X 2010
2011
11%
4%
5.2%
12.6%
18%
17.2%
34.8%
36%
2010
REINVESTMENT OF PROFITS
DIVIDENDS AND INTEREST
ON EQUITY
30.2%
INTEREST AND RENT
31%
Porto Seguro S.A.
HUMAN RESOURCES
GOVERNMENT
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2011 ANNUAL REPORT
Our History
1972 – On May 10, 1972, Abrahão Garfinkel and Felippe Cardilo quit
from Boa Vista and join Porto Seguro. On that occasion, as a result of
compensation for losses, we owed four times the amount for which we
were acquired. The only way out from this critical situation was to produce
and invest a lot and turn insurance brokers into business partners and
great allies. With this mindset, a new managerial stage begins.
1945 – The history of Porto Seguro S.A. dates back to August 27, 1945, when
José Alfredo de Almeida, José da Cunha Júnior, and José Andrade de Souza,
officers of the Banco Brasileiro de Descontos (Bradesco), with Amador Aguiar
acting as Managing Director, establish Porto Seguro Companhia de Seguros
Gerais, which is authorized to conduct insurance and reinsurance operations
in lines that include fire, inland marine, disability, and mutiny. Our operations
were restricted to the city of São Paulo. At that time, we placed forty-fourth
in the Brazilian insurance market and only had 25 employees.
The color of printouts, which up until then was green, starts being blue.
1947 – On December 17, 1947, we open our first branch in Rio de
Janeiro to operate in the same lines as the São Paulo headquarters.
1974 - We purchase a plot of land in Avenida Rio Branco, Campos
Elíseos Neighborhood, São Paulo, Brazil, and start building our new
headquarters. That year, two garages, Repar and Sevepe, as well as the
Guaporé General Motors Dealership join our Group.
1949 – We acquire Rochedo Companhia de Seguros, thereby unifying
our management and establishing the Porto Seguro Insurance Group
(Central, Porto Seguro, and Rochedo). With this corporate association,
we were trying to raise the technical limit insurance carriers in Brazil
were required to observe.
1976 - On November 15, we move to our own headquarters in
Avenida Rio Branco. This best-in-class building design stood out for its
functionality, its hanging garden, and its thirteen storeys.
1978 – On June 27, CEO Abrahão Garfinkel passes away. Rosa Garfinkel
is appointed to act in his stead. Jayme Brasil Garfinkel becomes our
Executive Vice President. On the first floor of our headquarters, we
open the Porto Seguro Art Room.
1956 – This was our expansionary phase due to a boom in the auto
portfolio. However, the number of delinquent policyholders increases
as well. This portfolio starts to be deemed high-risk.
1985 – We buy two two-storey houses located in Rua Guaianases
in downtown São Paulo. These houses belonged to the Dino Bueno
family, who resided there until 1933, and were then ceded to the
Salesian Congregation of the Daughters of Mary Help of Christians,
which used it as a boarding school. These two-storey houses were
designated as historic by the Brazilian Historic Landmark Defense
Council (CONDEPHAAT, acronym in Portuguese) that same year.
1958 - The Porto Seguro Insurance Group acquires Companhia
Renascença de Seguros. Due to our expansion, we move to the
headquarters of Renascença, which is based at Rua do Tesouro, São Paulo,
Brazil. This year, insurance professionals go on strike and demand pay
increases. This movement, which was covered by the media, publicizes
insurance in general and this category of employees in particular.
1959 – Policies were typewritten and, for group policies, we used
mimeograph machines and stencil. The Porto Seguro Group was
deemed to be privileged, since we had modern calculators and
typewriters, while many insurance carriers in the market were still
issuing handwritten policies. At that time, our official color was green.
The 24-Hour Porto Seguro Call Center started operating with a staff of
nine on-call employees, who rotated the role of taking calls on theft,
larceny, and collision events.
1986 – We became the first company to install an A-10 computer,
with 12 MB of RAM, in São Paulo. This change leads to a revamp of our
entire data center.
1966 – The Reinsurance and Fire departments become one, which allows
us to rationalize our procedures and, as a result, streamline our service.
1991 - Our new headquarters in Rua Guaianazes are opened with a
party for employees from Corporate and branches.
1967 – Quirino Ferreira, our Chief Executive Officer, engaged the
services of a Canadian consulting firm to rationalize our internal
procedures. This firm prepared a study to simplify the operations of all
of our departments. For instance, insurance applications, which were
previously specific to each line, were now consolidated. Based on this
rationalization, there was a single application with different exhibits
for each line. On that same year, we sold our controlling interest in
Renascença to Calil Eid Mansur.
We start distributing keycards, a spare plastic card to be used when the
original key goes missing, to policyholders.
We deployed the Professional Education and Retraining (FAP, acronym
in Portuguese) program, which prepares practical courses for
inspectors, auto body workers, mechanics, and painters that work for
Porto Seguro Serviços. The FAP has a classroom and a teaching shop
with a paint booth, a dismantled car, and purpose-specific tools. This
initiative was later extended to the other shops of our Group.
1968 – We move to our new headquarters in Avenida Paulista, São
Paulo, Brazil. We transferred almost all of our 150 employees, our staff
at the time, to the then recently erected building.
1970 – We sell our controlling interest in Companhia Central.
1971 – We merge with Companhia Rochedo, which ceases to exist.
Thus, we became a single company.
Porto Seguro S.A.
8
2011 ANNUAL REPORT
1994 - We implemented a documentation center and a library at
our headquarters.
We open the Casa Campos Elíseos Melhor, a neighborhood
improvement location that aims to generate income and education
for the community of the Campos Elíseos neighborhood in São
Paulo, Brazil.
We broke new ground when we offered policyholders a kit
containing water and crackers while assisting them. This was
the brainchild of an employee to improve the experience of
policyholders while they waited for their cars to be fixed.
2006 - We create the 4004-Porto, our “easy-to-remember phone number,”
which is available for policyholders from several Brazilian regions to
request emergency auto and / or home services.
1995 - Porto Seguro del Uruguay, our subsidiary based in Montevideo,
starts operating according to the Mercosur integration trend. Our
operations start with an auto insurance portfolio.
We opened our new Porto Seguro Automotive Centers for a total of
48 units.
We expanded our presence in the health insurance market. Porto Seguro
Saúde starts operating in new cities.
We establish Porto Seguro Vida e Previdência S.A.
1996 - We launch the Porto Seguro Electronic Service initially for the
Auto Losses department to check the necessary documentation to
commence procedures, schedule payments, authorize payments to
shops, and calculate deductibles.
2009 – We merge with Itaú Unibanco Holding to integrate our
homeowners’ and auto insurance operations. For these products,
we adopt the Porto Seguro, Itaú Auto e Residência, and Azul
Seguros brands.
We inaugurate Porto Seguro Online, our new website, which aims
to become a major source of information for policyholders and
nonpolicyholders alike. It is divided into two major areas, a general one
and another for brokers.
2010 – We release an app to file auto insurance applications via iPhone.
We open the first Quick Repair Shops (CARs, acronym in Portuguese),
which provide policyholders with the necessary structure to give them
peace of mind when navigating their way through losses.
1997 - Our funds start to be managed by Portopar Distribuidora de
Títulos e Valores Mobiliários Ltda.
Automotive Centers for Motorcycles: Porto Seguro Auto opened new
specific automotive centers for motorcycle repair and maintenance services.
We become a holding company in September 1997.
2000 - We establish Portonline, the first Internet service provider for
insurance brokers only. This service was originally released in São Paulo
at no cost and with unlimited access, including technical support.
Automotive Waste Management: we deployed a automotive waste
management system at the Porto Seguro Automotive Centers. Any
hazardous waste is recycled and / or co-processed, which minimizes any
environmental impact. In 2010, we recycled about 178 tons of auto junk.
2003 - We opened our first 24-Hour Automotive Center to provide
emergency mechanical, electrical, and tire and wheel repair services.
2011 - We are the fourth largest insurance company and the leader in
auto and homeowners’ insurance in Brazil. In addition, we employ over
13,000 professionals, who are divided into 130 offices and 4,917 Itaú
bank branches across Brazil. We also rely on nearly 24,000 independent
brokers and 10,000 service providers, with exclusivity agreements.
In November, we acquired AXA Brasil, a subsidiary of AXA, a French
multinational insurance company. After the acquisition, the company
was renamed to Azul Seguros. After this deal, we expanded our presence
worldwide, particularly in the lines of auto, property, and life insurance
(which does not include retirement plans).
We were authorized by the Brazilian National Telecommunications
Agency (ANATEL, acronym in Portuguese) to do business as Porto
Seguro Telecomunicações.
2004 - We launch our initial public offering (IPO) and enter the New
Market, a listing segment of the BM&FBovespa, which leads to the
adoption of corporate-governance practices that go beyond legal
requirements. On the first day of trading, our shares were sold at BRL
19.95, a 6.4% increase over our issue price of BRL 18.75 per share.
AXA Seguros is then renamed to Azul Companhia de Seguros
Gerais or Azul Seguros for short. This name was chosen in a contest
between brokers.
2005 – We open our first Automotive Center in Rio de Janeiro.
Porto Seguro S.A.
9
2011 ANNUAL REPORT
Business Strategy
We strive for growth and profitability through continued expansion. As a leading auto and homeowners’ insurance company in the main
Brazilian regions, we try to increase our share in other market segments. Our strategy is based on four pillars:
Segmentation
Three brands to meet
different needs and
preferences
Different offers to add
value: specific services,
rates, benefits, and
convenience
Outstanding Broker
and Customer Service
Groundbreaking
products and services
High service level based
on familiar service
Portfolio with
innovative, synergetic
products (cross-selling
opportunity)
Focus on long-term
relationship
Services that go beyond
the basics (home, auto
and people)
Above-market-average
renewal rates
Sophisticated risk
selection and pricing
model
Yield-based product
pricing
Sophisticated statistical
models and a robust
database
Historical loss ratio below
the market average
Services as main
branding asset
Our brokers play the fundamental role of implementing our corporate strategy. This is why we promote campaigns to encourage this audience
on an annual basis. In 2011, the Conquistadores and Carga Premiada campaigns, the former about annuities and retirement plans and the latter
about Porto Seguro Transportes, are examples of this. We also conducted a campaign that was especially oriented towards corporate health
insurance products, particularly occupational safety and health and Porto Seguro dental insurance. For such initiatives, the best-performing
brokers are rewarded for their contribution to our business.
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Porto Seguro S.A.
10
2011 ANNUAL REPORT
Acknowledgements
2011
THE GREATEST MARKETING COUPS AWARD
We were acknowledged because of two major marketing initiatives during a forum of the same
name that was held on May 4 in São Paulo, Brazil by the Brazilian National Corporate Modernization
Center. We were awarded in the Services category for the Trânsito+Gentil movement ads, which
encourage politeness in traffic, as well as Porto Seguro Auto Mulher, an auto insurance policy that
exclusively designed for women.
Trânsito+gentil
In order to draw the attention of drivers, pedestrians, and the general public to the importance of
adopting more police and respectful attitudes in traffic, the Trânsito+Gentil movement involves several
actions that range from delivering stickers and gifts containing our logo to placing ads in newspapers,
magazines, radio and television to posting videos on the Internet. You can follow up on all the initiatives
by visiting www.transitomaisgentil.com.br online. You can also follow @transitogentil on Twitter. By
March 2011, we had distributed over 3.5 million campaign stickers. Brazilian celebrities from soap
operas, comedy shows, stand-up comedy acts, among others, such as Giovanna Antonelli, Reynaldo
Gianecchini, and Marco Luque, starred in these videos. This movement started in 2009 in São Paulo
and, since March 2011, it has been sweeping Brazil.
Porto Seguro Auto Mulher
We created these ad campaigns to mirror the concerns over designing a product to meet the
specific needs of women and they were based on their needs according to surveys we conducted
with them. Since women were looking for increased practicality to reconcile personal care with
their careers and families, this product includes a number of special aids in the Porto Socorro Mais
Mulher clause, such as a taxicab to take policyholders to appointments or support them when
they are unable to be there (for instance, picking up their kids from school, always with a known
family member); emergency third-party auto or home services, provided that policyholders remain
where the event took place; Automotive Centers with a clean environment and a room for kids; as
well as discounts in gyms and restaurants and theater tickets. For more information about benefits,
please go to www.portoseguro.com.br/automulher online.
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Porto Seguro S.A.
11
2011 ANNUAL REPORT
Acknowledgements Throughout Our History
We are among the ten best ranked companies according to
InformationWeek, which publishes the Top 100 Innovative Companies in
the Use of IT study. We are the best ranked company in our business.
1989 - We receive the Volvo Safety Award because of our attendance
at the Brazilian Traffic Safety Year.
We receive the 2004 iBest trophy, the most important Internet awards
ceremony in Brazil, in the Insurance Company category as best insurance
website in Brazil.
1992 - We receive the Best of Marketing award for our If You Love It, Don’t
Litter campaign to raise awareness of littering in the streets of São Paulo.
1998 - We are elected as the Most Admired insurance company in a joint
survey by Carta Capital magazine and InterScience, a Brazilian consulting
firm. Overall, 1,061 businessmen from 449 companies were surveyed.
We receive the Excellence in Insurance Broker Service award.
We are ranked second among the most admired insurance companies,
according to Carta Capital magazine.
2000 - We are elected as the Most Admired Company in Brazil in our
business for the third consecutive time, according to a joint survey by
Carta Capital magazine and InterScience, a Brazilian consulting firm.
We receive the 2004 VII Performance Cobertura Award, which is granted
by Revista Cobertura Mercado de Seguros.
2005 - For the second year in a row, we were considered to be Top-ofMind Brand in the Insurance Company segment by Pop List.
2001 - We are elected as the Most Admired Company in Brazil in our
business for the fourth consecutive time, according to a joint survey by
Carta Capital magazine and InterScience, a Brazilian consulting firm.
We receive the 2004 The Chosen Ones award, which is granted by
Revista Quatro Rodas, the Auto Insurance category.
We are the only insurance company to be among the 500 Best
Companies to Work For in Brazil in the fifth issue of Guia Exame.
We are granted the Best and Biggest in Transportation and Logistics in 2004
in the Transportation category, by Revista Transporte Moderno.
We appeared in Valor Econômico’s Valor 1000 Yearbook as one of the
soundest insurance companies in Brazil.
We receive the 2004 Best-Performing Auto Portfolio award from
Revista Cobertura.
2003 - We receive the 2002 Performance Cobertura Award for our
leadership in the auto insurance business.
We receive the Social Initiative – Paraisópolis Community award from
Revista Cobertura.
We win the 2003 Top of Mind – Successful Brands award in the
Insurance Companies category.
Revista Quatro Rodas, the Auto Insurance category.
2004 - We receive the Best Company – Performance award in the
Health Insurance Business category during the 2003 VI Performance
Cobertura Award, which was published in the Cobertura Mercado de
Seguros magazine.
We got first place in the health insurance industry according to Gazeta
Mercantil, which granted us the Financial Balance award.
We receive the Top of Mind award, which is granted by the Instituto de
Pesquisas A Tribuna, a think tank from the Baixada Santista, for the third
year in a row.
We get the 2003 Top-of-Mind Insurance Company award, which is
granted by the Housing Union (SECOVI, acronym in Portuguese).
During this awards ceremony, we are the second top-of-mind
electronic security company in 2003.
In 2003, Jayme Garfinkel receives the Business Leadership award from
Gazeta Mercantil.
We received the Major Marketing Coups in Brazil award in the Services
category for the 333-Porto Campaign. This award is granted by the
Brazilian National Modernization Center.
We receive the Best-Performing Health Insurance Portfolio award from
Revista Cobertura.
We receive the Best Insurance Company award from the Taubaté
Brokers’ Club for the fifth year in a row.
We win the Alvorada Trophy – Best Insurance Company in Other Lines / Best
Auto Insurance Company award, which is granted by the Insurance Brokers’
Union (SINCOR, acronym in Portuguese) from the Brazilian Federal District.
We receive the Top of Business award, which is granted by Montreal
Eventos, in the Service Delivery category.
Jayme Garfinkel is granted the High-Value Executive award, a tribute to
the best-performing professionals in their businesses in 2003.
We get the Best Auto Insurance Product and Ad Campaign of the
Year (Mass Media) awards for 333-Porto, which are granted by Top de
Marketing Seguros News.
We were elected as the 2004 Top of Mind company, according to A
Tribuna from Santos.
We stand out as one of the 100 Top Sensory Companies in Brazil,
according to Info magazine.
Porto Seguro S.A.
12
2011 ANNUAL REPORT
We get the 2005 Provider Highlight – Best Insurance Brand award from
the Housing and Condominium Union (SECOVI, acronym in Portuguese).
We receive the Graphic Design Esso award in the Magazine category
from issue 08 of Porto Seguro Brasil magazine;
According to a survey by Carta Capital, we are ranked second among
The Most Admired Companies in the Insurance Companies category.
We get the Top-of-Mind Insurance Company by College Students
accolade, which is granted by the Paraná branch;
We are elected as Preferred Brand among insurance companies by
Quatro Rodas magazine.
We receive 2006 Best Insurance Company Alvorada award in the Auto
category from the Union of Insurance Brokers (SINCOR, acronym in
Portuguese) of the Brazilian Federal District;
Jayme Garfinkel receives the Brazilian Insurance Person of the Year
from Revista Cobertura because of his confidence, serenity, and
transparency while running our company.
We are granted the Best Performance award in the Auto and Rent
Guarantee categories by Segurador Brasil magazine.
We are ranked first among The Most Respectful Companies Towards
Consumers in the Services and Insurance category, according to a
Revista Consumidor Moderno survey.
The same magazine granted us the Performance / Category Accolade (Most
Leverage and Results) in the Health and Inland Marine Insurance categories.
It also elected Jayme Brasil Garfinkel as Insurance Person of the Year;
For the second time in a row, we are one of the 150 Best Companies
to Work For, according to Guia Exame S/A.
We are elected as Best Insurance Company by the QualiBest Institute.
2007 - We are included among The Most Admired Companies in
Brazil in 2007, which is promoted by Carta Capital, in the Insurance
Companies category;
Jayme Garfinkel is acknowledged as Very Important Person in the
History of the Brazilian Insurance Industry by the Brazilian National
Insurance and Retirement Academy (ANSP, acronym in Portuguese).
We receive the Top 100 Companies to Work For from EXAME magazine;
2006 - We receive the 2006 Financial Balance award from Gazeta
Mercantil in the Health Insurance category.
We receive the 2007 Financial Balance award from Gazeta Mercantil in
the Health Insurance category;
We are granted the Best Insurance Group in Brazil award in the Auto
and Health category by Revista Conjuntura Econômica from the Getulio
Vargas Foundation’s Brazilian Institute of Economics.
We receive the Agência Estado Corporate Highlight in the Insurance
Company category from Agência Estado;
We are included in the Top 100 Bovespa Companies – Corporate Governance;
Quatro Rodas magazine, for the third year in a row;
We receive the Trustworthy Brands award from Reader’s Digest;
We are elected as The Most Admired Company in 2006 among
insurance companies, according to Carta Capital magazine;
We are granted the Best and Biggest in Transportation and Logistics in
the Insurance Company category by Revista Transporte Moderno;
We are ranked second in the Insurance category in the 2006 Top of Mind
Award, which is granted by Folha de São Paulo and the Datafolha Institute;
We win the Best Service and Quick Commission Payment award from
Seguro Total magazine;
Our 333-Porto – Ensaboada campaign got Gold in the Financial Market
and Insurance category from the Group of Radio Professionals (GPR,
acronym in Portuguese);
We are elected as The Best in Brazil by the Getulio Vargas Foundation’s
Revista Conjuntura Econômica in the Auto and Health categories;
We are granted the Best-Performing Publicly Traded Companies, Top
Companies, and Companies That Most Respect Consumers awards
from Agência Estado;
We are granted The Companies That Most Respect Consumers award
in the Insurance category by Consumidor Moderno magazine;
We are ranked third among The Brands That Most Respect Consumers
by Reader’s Digest;
Ms. Karen Pimentel is elected by the Union of Insurance Brokers (SINCOR,
acronym in Portuguese) of Amazonas State as Best Employee of BasicInsurance Companies;
We receive the Best Companies for Stockholders in 2006 award from
Capital Aberto magazine;
We are included in Valor 1000’s Top 1000 Companies;
We are ranked first in the Insurance Company category of Top of Mind
Campinas, which is promoted by Correio Popular;
We are included in the FGV IBRE, the best insurance groups in Brazil, in
the Auto segment;
We receive The Best and Biggest award from Revista Transporte Moderno;
We win the Insurance Market award at the Troféu Gaivota de Ouro ceremony;
We are ranked first in the Insurance Company category of Top of Mind
Mato Grosso do Sul, which is promoted by Revista A Gente;
Porto Seguro S.A.
13
2011 ANNUAL REPORT
We win the iBest – Insurance award from the Brazilian iBest Academy;
We get the 2010 Brazil Insurer – Best-Performing Insurance Company
Globally – Porto Seguro Seguros and 2010 Brazil Insurer – Leader in Sales –
Auto awards from Prêmio Segurador Brasil 2010 magazine;
Jayme Brasil Garfinkel is awarded the 2007 Successful award in the
Services category from Banco Hoje magazine;
We are elected as Insurance Company of the Year by the Union of
Insurance Brokers (SINCOR, acronym in Portuguese) of Pará State.
We are the 2010 Sorocaba Top of Mind company in the Insurance
Company category, according to a survey conducted by the Sorocaba
Research Institute (IPESO);
2008 - We are granted The Companies That Most Respect Consumers
award by Consumidor Moderno magazine;
We receive the 2010 Trustworthy Brands award from Reader’s Digest, in
association with IBOPE Inteligência, in the Insurance Company category;
We are the 2008 Top of Mind – Top Class A company, according to the
Datafolha Institute;
We are included in The Best of the Year of the Vehicle and Accessory Repair
Industry Union of São Paulo State (SINDIREPA, acronym in Portuguese);
We were ranked third among the 50 Biggest Property & Casualty
Insurance Companies;
Jayme Garfinkel attends the leadership forum to discuss the Insurance
and Retirement Business topic;
We receive the 2008 Financial Balance award from Gazeta Mercantil in
the Auto Insurance category;
We are included among the Top 100 HR Suppliers, according to a special
issue of Gestão RH magazine;
We are included in the Top 100 Bovespa New Market Companies in Brazil;
We receive the Trustworthy Brands award from Reader’s Digest;
We receive the 2010 Marketing Best award from the Getulio Vargas
Foundation São Paulo School of Business Administration (FGV / EAESP);
We receive the Gaivota de Ouro award for Best Auto Insurance
Portfolio and Best Broker Service;
We receive the Renato Castelo Branco Social Responsibility in Advertising
award from the Escola Superior de Propaganda e Marketing (ESPM).
We are ranked first in the Pop List of O Popular from Goiânia;
We win the 2008 Top of Mind award in the Property Security category;
We are the Top-of-Mind Insurance Company during the Top Tri Vale awards
ceremony, which was organized by Revista RDM (Mato Grosso State).
award by Consumidor Moderno magazine in the Retirement category;
We win the 2009 Great Marketing Breakthroughs awards from the
National Corporate Modernization Center;
We receive the 2009 Top of Mind award from Folha de São Paulo in the
Auto Insurance category.
award by Consumidor Moderno magazine;
We stand out as one of the 100 Top Sensory Companies in Brazil,
according to Exame Info magazine;
We are included in the Top-of-Mind Brands in the Insurance category,
according to the twelve-year-issue of the Marcas de Quem Decide
survey, which is conducted by Jornal Comércio and Qualidata Pesquisas e
Conhecimento Estratégico;
We receive the 2010 Internet Top of Mind award, according to a
Datafolha survey, in the Insurance Company category;
Porto Seguro S.A.
14
2011 ANNUAL REPORT
Corporate Governance
In 2000, the São Paulo Stock Exchange (BOVESPA, acronym in
Portuguese) introduced three special listing segments, which are
known as levels 1 and 2 of Special Corporate Governance Practices and
New Market. They intended to create a secondary securities market
for Brazilian publicly-held companies that follow the best practices
in corporate governance. Listing segments serve to trade shares
issued by companies that voluntarily commit to the best practices in
corporate governance and more stringent disclosure requirements
than those already mandated by the Brazilian laws. In general, such
rules expand shareholders’ rights and improve the quality of the
information shareholders receive.
States generally accepted accounting principles (US GAAP);
Our disclosures include the initial statement of beneficial ownership
of securities (FR, acronym in Portuguese) – a document that must
be periodically submitted by listed corporations to the Brazilian
Securities and Exchange Commission and the São Paulo Stock
Exchange –, which is publicly available and contains our corporate
information, including the amount and characteristics of the
securities that we issued and that are currently owned by groups
of majority shareholders, directors, officers, and members of the
supervisory board, as well as the evolution of such positions;
Public meetings are held with analysts and investors at least once a year;
We follow the best practices in corporate governance and, thus,
strengthen the principles that favor transparency, fairness, and
respect for shareholders and create the conditions for developing
and maintaining long-term investor relations. Our constant drive
to improve our actions in Investor Relations aims to enhance the
permanent hotline between all business stakeholders – shareholders,
regulatory agencies, brokers, associates, and the community, among
others – and us.
An annual calendar containing a schedule of corporate events, such
as meetings, disclosures and so forth, is presented;
The terms and conditions of agreements between Porto Seguro
and associated counterparties are disclosed;
The trading of the securities and derivatives our majority
shareholders issued is disclosed on a monthly basis;
We are listed in the New Market (under the ticker symbol PSSA3), a
special segment in the São Paulo Stock Exchange that is exclusive to
corporations that meet given minimum requirements and stringent
corporate-governance rules.
At last twenty-five percent (25%) of our capital remains as shares
outstanding;
During general public distributions, mechanisms that favor capital
dispersion are adopted;
The best practices in corporate governance recommended by
the Brazilian Corporate Governance Institute (IBGC, acronym in
Portuguese) that we adopt include the following:
We join the market arbitral tribunal to solve corporate disputes.
Our capital is exclusively divided into common shares;
TRADING AT BOVESPA
Any transactions at the São Paulo Stock Exchange are settled within three
(3) business days of the trade date without any inflation adjustments.
Shares are delivered and payments are made by using the Brazilian
Clearing and Depository Corporation (CBLC, acronym in Portuguese), the
São Paulo Stock Exchange’s clearinghouse. Usually, it falls to the seller to
deliver the shares to the São Paulo Stock Exchange on the second (2nd)
business day after the trade date.
All shareholders have the right to sell their stake at the same terms and
conditions as would apply to majority shareholders (tag-along rights);
A tender offer for all shares outstanding at the current market price,
at least, in the event of going private or having our stock delisted
from the New Market;
The board of directors must have at least five (5) members, with
terms of up to two (2) years, and reelections must be allowed. At
least twenty percent (20%) of members must be independent directors;
Even though all outstanding shares of a publicly-held corporation can
be traded at the São Paulo Stock Exchange, most times less than half of
issued shares is actually available for trading by the public. Oftentimes,
most shares are owned by a single majority shareholder or a small group
of people with a controlling interest, including government bodies.
Sometimes, there may not be an active and liquid market for shares, which
would limit the investors’ ability to resell their shares.
Our disclosures are improved and added to our quarterly financial report
(QFR) – a document that must be submitted by listed corporations
to the Brazilian Securities and Exchange Commission (CVM, acronym
in Portuguese) and the São Paulo Stock Exchange –, which is publicly
available and contains our quarterly financial information, including our
consolidated financial and cash flow statements;
REGULATION OF THE BRAZILIAN CAPITAL MARKET
The Brazilian capital market is regulated by the Brazilian Securities and
Exchange Commission (CVM, acronym in Portuguese), which oversees
the stock exchanges and capital markets in Brazil, as well as the Brazilian
Federal Open Market Committee (CMN, acronym in Portuguese) and
the Brazilian Central Bank (BACEN, acronym in Portuguese), which, among
other mandates, must license brokers and regulate foreign investments and
foreign-exchange transactions. The Brazilian capital market is governed by
Our fiscal-year disclosures are improved and added to our standard
financial statements – documents that must be submitted by listed
corporations to the Brazilian Securities and Exchange Commission and
the São Paulo Stock Exchange –, which are publicly available and contain
our annual financial reports, including our cash flow statement;
Our financial statements are disclosed according to the
international financial reporting standards (IFRS) or the United
Porto Seguro S.A.
15
2011 ANNUAL REPORT
The members of the supervisory board, when established, are elected
during meetings of stockholders for a term of two (2) years. They can be
reelected. According to the Brazilian Federal Act 6404/76, the supervisory
board may not include our directors, executives, or employees or a spouse or
relative (up to the third degree) of any member of the management team.
the Brazilian federal acts 6385/76 and 6404/76 as well as instructions,
rulings, and other regulations issued by the Brazilian Securities and
Exchange Commission.
According to the Brazilian Federal Act 6404/76, corporations may be publicly
held, such as Porto Seguro, or privately held. A company is considered to
be publicly-held when its issued shares are traded in a stock exchange or
an over-the-counter market. All publicly-held companies are registered
with the Brazilian Securities and Exchange Commission and must disclose
information, reports, and statements periodically. The securities of a privatelyheld company may be traded in Brazilian stock exchanges or the Brazilian
over-the-counter market. The shares of a publicly-traded company, such as
our shares, may also be privately traded, with certain restrictions.
CORPORATE-GOVERNANCE STRUCTURE
Our corporate-governance structure includes our board of directors, an
executive board, and an audit committee. These bodies are tasked with
planning and running our business as well as overseeing the proper
implementation of strategies, the actual achievement of results, and the
compliance with legal requirements and good business practices. Our
articles of incorporation provide for the creation of a supervisory board at
the request of stockholders according to statute. Currently, no supervisory
board was created.
The over-the-counter market is divided into two categories: (i) an
organized over-the-counter market where trades are supervised by selfregulated bodies authorized by the Brazilian Securities and Exchange
Commission; and (ii) an unorganized over-the-counter market where
trades are not supervised by self-regulated bodies authorized by the
Brazilian Securities and Exchange Commission. In either case, overthe-counter transactions consist of direct trades between the parties
outside the purview of a stock exchange, which are mediated by a
financial institution authorized by the Brazilian Securities and Exchange
Commission. Other than being registered with the Brazilian Securities
and Exchange Commission (and, for organized over-the-counter
markets, the appropriate over-the-counter market), no special permits
are required for securities from publicly-held companies to be sold
in an over-the-counter market. All transactions in the Brazilian overthe-counter market must be disclosed to the Brazilian Securities and
Exchange Commission by the respective financial intermediaries.
BOARD OF DIRECTORS
The duties and responsibilities of the board of directors include
establishing our general policies, electing officers, overseeing our
management, and approving certain operations. Pursuant to our articles
of incorporation, this body is composed of at least five (5) and at the most
seven (7) members.
Currently, our board of directors is composed of seven (7) members.
According to statute, all of them are shareholders, with the exception
of two, who are independent. Directors are elected during a meeting of
shareholders for a term of one (1) year. They can be reelected.
Shareholders can remove them from office at any time.
Currently, our board of directors is as follows:
The São Paulo Stock Exchange may suspend the trading of a given security
in anticipation of the announcement of a relevant fact. Trading may also
be suspended at the behest of the São Paulo Stock Exchange or the
Brazilian Securities and Exchange Commission if, among other reasons, a
company is suspected of providing misleading information concerning a
relevant event or inaccurately replying to an investigation by the Brazilian
Securities and Exchange Commission or the appropriate stock exchange.
Chairman of the Board
Jayme Brasil Garfinkel holds a degree in Civil Engineering (1970) from the
Polytechnic School of the University of São Paulo and an advanced degree
in Business Administration (1975) from the Getulio Vargas Foundation. Mr.
Garfinkel joined Porto Seguro in 1972 as an Assistant to the Executive Board
and took over as Chief Operating Officer in 1978. He was a member of the
Brazilian Federal Board of Insurance (CNSP, acronym in Portuguese) from
1987 to 1991 and Chairman of the Union of Insurance and Capitalization
Companies of São Paulo State from 1989 to 1990. Currently, Mr. Garfinkel
is the Chairman of the Board and Chief Executive Officer of Porto Seguro
S.A. Moreover, he also acts as the Chief Executive Officer of subsidiaries and
parent companies. Mr. Garfinkel is also Chairman of the Brazilian Property
and Casualty Insurance Federation (FenSeg, acronym in Portuguese) and
Vice Chairman of the Brazilian Trade Association for Property & Casualty
Insurance, Private Pension & Annuity, Supplemental Health Insurance and
Capitalization Companies (CNSeg, acronym in Portuguese).
The Brazilian Federal Act 6385/76 and the Brazilian Securities and Exchange
Commission regulations provide for, among other things, obligations to
disclose information, restrictions on trades based on insider trading and
market manipulation, as well as protections for minority shareholders.
In the Brazilian stock exchanges, trading by nonresident aliens is subject to
certain restrictions according to the Brazilian laws on foreign investments.
SUPERVISORY BOARD
The Brazilian corporate laws require us to have a permanent supervisory
board or a supervisory board that only acts during the fiscal years when it
is established at the behest of shareholders. Our articles of incorporation
provide for the creation of a nonpermanent supervisory board composed
of five members and an equal number of substitutes. The supervisory board
is a separate body from our board of directors and independent auditors.
The main duties of the supervisory board include overseeing the actions of
executive management team, give opinions on some of the board of directors’
propositions to be submitted to shareholders for deliberation purposes, look at
our financial statement, and report any mistakes, instances of fraud, or crimes
of which they become aware to the executive boards and shareholders.
Porto Seguro S.A.
Pedro Moreira Salles
Vice Chairman of the Board
Pedro Moreira Salles graduated magna cum laude from the University of
California at Los Angeles with a bachelor’s degree in Economics and History
management na Harvard University. He attended International Relations
at Yale University and Owner / President Management Program at Harvard
University. Currently, Mr. Moreira Salles is the Chairman of the Board of Itaú
Unibanco Holding S.A., a position he has been filling since January 2009,
and the Vice Chairman of the Board of Banco Itaú BBA S.A., a position he has
been filling since February 2009.
16
2011 ANNUAL REPORT
Pedro Luiz Cerize
Independent Director
Pedro Luiz Cerize acts as independent director for CVI, OHL, and Copel.
Mr. Cerize holds a bachelor’s degree in Business Administration from the
Getulio Vargas Foundation, São Paulo and an MBA in Finance from the
Brazilian Capital Market Institute (IBMEC, acronym in Portuguese). He has
worked for Corretora Socopa, Banco Fator, and Banco BBA Creditanstalt.
Mr. Cerize is one of the founding members and the manager of Skopos
Administradora de Recursos. He was elected to sit on the Board of
Directors of Porto Seguro S.A. for the first time in 2008.
Casimiro Blanco Gomez
Director
Casimiro Blanco Gomez holds a degree in Accounting (1972) and Economics
(1974) from the São Paulo School of Economics and an advanced degree in
Controlling (1980) from the Getulio Vargas Foundation. Mr. Blanco Gomez
joined Porto Seguro as an Accountant in 1974 and, in 1983, he was promoted
to Chief Controlling Officer. From 2000 to 2010, he was the Chief Operating
Officer. Mr. Blanco Gomez was the Chief Operating Officer of Porto Seguro
Vida, Azul Seguros, and Porto Seguro Saúde as well as an Officer of Portopar
Distribuidora de Títulos e Valores Mobiliários and Porto Seguro Uruguay. Mr.
Blanco Gomez has been an Officer since 1992 and Chairman of the Union
of Insurance Companies of São Paulo State from 2001 to 2003. He was a
member of the Accounting and Tax Commission of the Brazilian Federation of
Insurance and Capitalization Companies (FenaSeg, acronym in Portuguese).
He contributed to several studies by the Brazilian Federal Board of Insurance
(CNSP, acronym in Portuguese). Currently, Mr. Blanco Gomez is the Vice
Chairman of the Board of Seguradora Líder dos Consórcios do Seguro DPVAT
S/A and a member of the Insurance Protection Board, both from the Brazilian
Trade Association for Property & Casualty Insurance, Private Pension & Annuity,
Supplemental Health Insurance and Capitalization Companies.
EXECUTIVE BOARD
The Executive Board is tasked with executing the decisions made by the
Board of Directors and running our company on a daily basis.
Each executive also has individual duties and responsibilities, which are
established by the Board of Directors.
The Executive Board is composed of at least three (3) and at the most
five (5) members, who are elected and can be removed from office at
any time by the Board of Directors. This body is composed of a Chief
Executive Officer, a Chief Financial Officer, who also acts as Chief Investor
Relations Officer, a General Counsel and, ultimately, officers with no
specific designation. Terms last for one (1) year. Reelections are allowed.
Jorge Diamant Schulhof
Director
Jorge Diamant Schulhof holds a degree in Metal Engineering (1969)
from the Polytechnic School of the University of São Paulo and an
advanced degree in Financial Management (1972) from the Getulio Vargas
Foundation. Mr. Diamant Schulhof has 35 years of experience as the Chief
Financial Officer and Managing Director of mining, metal, and electronics
companies. For 15 years, he acted as the Chief Investor Relations Officer
of publicly traded companies. Currently, Mr. Diamant Schulhof sits on the
Board of Directors of Porto Seguro S.A. and Companhia Brasileira de Lítio
S.A. and is an independent consultant with an emphasis on the field of
Finance, notably when it comes to corporate financial restructuring.
Chief Executive Officer
Jayme Brasil Garfinkel holds a degree in Civil Engineering (1970) from the
Polytechnic School of the University of São Paulo and an advanced degree
in Business Administration (1975) from the Getulio Vargas Foundation. Mr.
Garfinkel joined Porto Seguro in 1972 as an Assistant to the Executive Board
and took over as Chief Operating Officer in 1978. He was a member of the
Brazilian Federal Board of Insurance (CNSP, acronym in Portuguese) from
1987 to 1991 and Chairman of the Union of Insurance and Capitalization
Companies of São Paulo State from 1989 to 1990. Currently, Mr. Garfinkel
is the Chairman of the Board and Chief Executive Officer of Porto Seguro
S.A. Moreover, he also acts as the Chief Executive Officer of subsidiaries and
parent companies. Mr. Garfinkel is also Chairman of the Brazilian Property
and Casualty Insurance Federation (FenSeg, acronym in Portuguese) and
Vice Chairman of the Brazilian Trade Association for Property & Casualty
Insurance, Private Pension & Annuity, Supplemental Health Insurance and
Capitalization Companies (CNSeg, acronym in Portuguese).
Marcos de Barros Lisboa
Director
Marcos de Barros Lisboa sits on the Board of Directors of Porto Seguro S.A.
since July 2011 and on the Board of Directors of Porto Seguro Itaú Unibanco
Participações S.A. since May 2011. Moreover, Mr. Barros Lisboa also sits on the
Board of Directors of Dibens Leasing S.A. – Arrendamento Mercantil since
April 2009. He has been the Executive Director of Itaú Unibanco Holding S.A.
since April 2009. He acts as the Chief Operating Officer of Itaú Unibanco S.A.
since April 2010 and was its Executive Director from November 2008 to April
2010. Since March 2011, Mr. Barros Lisboa is the Managing Director of Itaú
Seguros S.A. and acted as an Officer from March 2009 to March 2011. He has
been the Chief Operating Officer of Unibanco – União de Bancos Brasileiros
S.A. since April 2010 and was its Executive Director from July 2006 to October
2009. He was also the Secretary of Economic Policy of the Brazilian Treasury
from 2003 and 2005 and Chief Executive Officer of IRB – Brasil Resseguros
S.A. He hold a bachelor’s and a master’s degree in Economics from the
Federal University of Rio de Janeiro (UFRJ, acronym in Portuguese) and a PhD
in Economics from the University of Pennsylvania.
Marcelo Barroso Picanço
Chief Financial Officer and Chief Investor Relations Officer
Marcelo Barroso Picanço holds a master’s degree in Business Administration
from the Coppead Graduate School of Business of the Federal University of
Rio de Janeiro and the Wharton School of the University of Pennsylvania.
Mr. Barroso Picanço also holds a bachelor’s degree in Electronic Engineering
from the Technological Institute of Aeronautics (ITA, acronym in Portuguese).
He joined Porto Seguro in July 2006 as Chief Financial Officer. Later, he
acted as Managing Director of Portoseg (Financing and Credit Card) and
Portopar (DTVM). After July 2010, he also acted as Chief Investor Relations
and Strategic Planning Officer. Before joining Porto Seguro, Mr. Barroso
Picanço, in his capacity as Chief Financial Services Officer, worked for Booz
Allen Hamilton (currently Booz & Company), where he developed strategicpositioning as well as organizational-design and -transformation projects for
leading companies in Brazil and Latin America.
Fernando Kasinski Lottenberg
Independent Director
Fernando Kasinski Lottenberg holds a law degree, a master’s degree
in Philosophy and General Theory of Law, and a PhD in Public
International Law from the University of São Paulo. Mr. Kasinski
Lottenberg is a corporate-law attorney.
Porto Seguro S.A.
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2011 ANNUAL REPORT
Lene Araújo de Lima
General Counsel
Lene Araújo de Lima started his career at Porto Seguro’s Legal Department in 1994. In 2001, he was promoted to head of the Legal Department and, in June
2008, he started acting as General Counsel in charge of the Legal, Inquiry, Fraud Prevention, and Internal Controls departments. Currently, Mr. Araújo de Lima is
the General Counsel of Porto Seguro S.A. and Porto Seguro Companhia de Seguros Gerais, Porto Seguro Saúde S.A., Itaú Seguros de Auto e Residência S.A., Azul
Companhia de Seguros Gerais, its subsidiaries, as well as the Porto Seguro Institute. He is also an officer at Portoseg S.A. – Crédito, Financiamento e Investimento,
Portopar D.T.V.M Ltda., Porto Seguro Administradora de Consórcio Ltda., Portoserv Promotora de Serviços Ltda., and Portomed – Porto Seguro Serviços de Saúde
S.A. Additionally, he also acts as Chairman of the supervisory board of Portoprev – Porto Seguro Previdência Complementar. Mr. Araújo de Lima holds a law
degree with a minor in Civil Procedure from the graduate program of the Pontifical University of São Paulo (PUC-SP, acronym in Portuguese) and an International
Executive MBA degree from the Fundação Instituto de Administração (FIA, acronym in Portuguese).
AUDIT COMMITTEE
Established by our board of directors, the audit committee’s overarching goal is to support the management of the Porto Seguro Group’s companies
when it comes to the best practices in corporate governance in order to ensure business transparency for shareholders and investors.
The audit committee must be composed of at least three (3) and at the most five (5) members, who are elected by our board of directors for a term to be
established by the said body. Members may be reelected, provided that they do not remain in office for longer than five (5) years. There is the possibility of
reelection, but only three (3) years after the end of the previous term. The directors may be elected as members, provided that they meet all of the position’s
requirements and restrictions, as defined in the committee’s bylaws.
Currently, the audit committee is composed of the following members:
Evandro César Camillo Coura
Evandro César Camillo Coura holds a degree in Electrical Engineering from the Military Institute of Engineering (1980) and a master’s degree in Business
Administration with a minor in Managerial Control and Operations from the Coppead Graduate School of Business of the Federal University of Rio de
Janeiro (1986). Mr. Camillo Coura acted as Chief Control and Risk Officer of Fibra Celulose S.A., Chief Executive Officer of Gaia Energia Participações, and
Chief Executive and Investor Relations Officer of the Rede Energia Group.
Alfredo Sérgio Lazzareschi Neto
Alfredo Sérgio Lazzareschi Neto holds a law degree from the University of São Paulo School of Law and attended the Harvard University Extension School,
the Chicago-Kent College of Law, and the University of Buenos Aires. Mr. Lazzareschi Neto is a member of the legal team of the São Paulo State Federation of
Industries, a former member of the board of the São Paulo Lawyers Association (AASP, acronym in Portuguese), and Deputy Chairman of the São Paulo Bar
Association’s Committee on Capital Markets and Corporate Governance. He is the author of Lei das sociedades por ações anotada [Annotated Corporations
Law], which was published by Editora Saraiva.
Tereza Grossi
Tereza Grossi holds a bachelor’s degree in Business Administration and Accounting from the Catholic University of Minas Gerais. Ms. Grossi acts as Financial
Expert and has been on the Audit Committee of Itaú Unibanco Holding S.A. since July 2004. Furthermore, she has been on the Audit Committee of the São
Paulo Securities, Commodities and Futures Exchange (BM&FBovespa, acronym in Portuguese) since May 2009.
Porto Seguro S.A.
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2011 ANNUAL REPORT
03.
OUR PRODUCTS
Our portfolio is divided as follows: insurance, financial products, and services. It was developed to meet the most varied personal or individual needs.
Our brokers and us stand out in the marketplace because of the scope and the benefits of our products.
Porto Seguro Auto
We have over two million clients all over Brazil, to whom we offer a premium auto insurance category with a number of benefits and services,
from parking garage discounts to free diagnostics in repair shops.
Quick Repair Shop
In 2011, we increased the number of quick repair shops (CARs, acronym in Portuguese) by 20 sites. We now have 60 shops all over Brazil. This
service, which was launched in 2010, aims to speed up the necessary procedures to authorize vehicle repairs in the event of crashes or other
losses. This is recommended for small accidents where cars are able to move. Benefits vary according to the product and the clause that were
purchased and are valid provided that a network shop is chosen.
Porto Seguro Pequenas Empresas
This clause was released in 2011 for small businesses with cars
that we insured. It includes services and benefits to meet the
specific needs of these corporate clients, which range from
guaranteed hire cars to an IT help desk to assorted office repairs.
Porto Seguro Auto Mulher
We conducted a poll with women to understand their needs
when buying auto insurance and we identified they want
benefits that make it practical to reconcile their personal lives,
their careers, and their families. Based on results, in 2011, we
released Porto Seguro Auto Mulher, which provides female
drivers with exclusive services and benefits.
You can buy insurance flexibly, with several options of coverage
and deductibles, and the Porto Socorro Mais Mulher clause
includes special car maintenance and residential services,
discounts at personal wellness establishments, among others.
Porto Vias
We are always trying to improve traffic in big cities and Porto Vias, a free service that provides policyholders
and nonpolicyholders with information on the best routes to avoid traffic, is testament to this. Vehicle
tracking data make sure that traffic information is 90% accurate. Our exclusive technology makes it easier
to check it earlier and choose the best routes based on those that were already entered by the very drivers.
This is available in the metropolitan areas of São Paulo and Rio de Janeiro and it is free. This is the only
system to provide information on the average speed of vehicles and the estimated time of arrival, besides
the ability to view traffic conditions for the selected route.
Porto Seguro S.A.
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2011 ANNUAL REPORT
Trânsito+gentil
Surveys by Brazilian traffic management authorities, such as the Brazilian Federal Department of Motor Vehicles (DENATRAN, acronym in Portuguese),
estimate that, every year, 35,000 people died in traffic accidents due to human failure in Brazil. Because of this and according to our policyholder
protection philosophy, which aims to provide security to our clients, we launched the Trânsito+Gentil campaign, which was originally deployed in São
Paulo State and subsequently extended to all Brazilian states. The campaign preaches politeness as a way of diminishing traffic violence.
Moreover, it involves a number of actions based on several studies on the relation between human behavior and traffic, such as the Driving Anger Scale
(Deffenbacher, Oetting and Lynch, 1994), which identified the scenarios that annoy drivers the most. Tailgaters who flash their headlights or drivers who
use the right-hand lane to pass you, slow jaywalkers, traffic jams, and drivers who blow their horns too much are among the cases in point.
This campaign gains strength during Carnival, when we traditionally prepare a special road assistance operation with extra tow trucks, locksmiths,
taxicabs, first responders, and free diagnostics in free repair shops in the Brazilian states of São Paulo, Rio de Janeiro, Espírito Santo, Bahia, Paraná, Santa
Catarina, and Rio Grande do Sul.
itaú auto e residência
This new company is an offshoot of an association between Porto Seguro
and Itaú Unibanco and consolidated our leadership in the lines of auto
and homeowners’ insurance. It offers our clients the most complete
insurance product in the marketplace.
This company operates across Brazil.
Itaú Auto Insurance
In 2011, we started offering additional benefits to our policyholders that
hold Itaú checking accounts, such as a five percent (5%) discount on new
insurance policies or renewed insurance policies as well as an extension
for free guaranteed hire cars from seven (7) to fifteen days (15) and up to
twenty-two (22) days [this benefit is only valid if the car was sent to a quick
repair shop (CAR) for claims adjustment purposes]. We also introduced
a new benefit: if the policyholder is responsible for the loss, he or she
can call a tow truck for third parties. Policyholders can call up to two
(2) trucks within a radius of sixty (60) miles during the term of a policy.
Policyholders are now entitled to a tow truck at any distance whatsoever,
regardless of the plan they purchased. They are also entitled to a
twelve percent (12%) discount on repairs at the Porto Seguro repair
shop network.
A survey by the Brazilian Department of the Environment found that
Brazilians are receptive to sustainability-related services. Seventeen
(17%) of respondents have electronic waste at home, sixty-six
percent (66%) are willing to sort waste for recycling purposes, sixtythree percent (63%) intend to cut water waste, forty-six percent (46%)
would reduce their power consumption to help the planet, and fiftynine percent (59%) deem that changes to consumer, commuting,
and eating habits are necessary to avoid environmental issues.
Itaú Homeowners’ Insurance
Since October 2011, Itaú Homeowners’ Insurance policyholders rely
on Environmental Services, which include Smart Disposal, a collection
program for items policyholders no longer use, such as furniture,
electronics, and appliances. These items are then sent to an eco-friendly
disposal facility. Any objects in good condition are donated to charitable
organizations, which make sure they find a socially responsible destination.
Practicality for Brokers
In order to make it easier for brokers to close deals involving its
products, in 2011, Itaú Seguros de Auto e Residência launched an
online tool that allows brokers to process applications quicker and, for
instance, immediately know when applicants will receive quotations.
Brokers receive quotations by e-mail, among other conveniences.
This service is available in Belo Horizonte, Curitiba, Rio de Janeiro, Porto
Alegre and their respective metropolitan areas, as well as São Paulo and cities
within a maximum distance of sixty (60) miles, such as Campinas, São José
dos Campos, Sorocaba, and towns in the Baixada Santista.
This insurance product also provides policyholders with
environmental guidance, awareness of the judicious use of energy
and water resources over the phone, waste recycling, among other
topics. In addition, we offer them ecoefficient projects, which
give them expert advice on the development of projects to adapt
furniture with concepts of bioclimatic architecture, including
rainwater harvesting, green roofs, and solar power.
Porto Seguro S.A.
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2011 ANNUAL REPORT
azul seguros
Our Azul auto insurance is intended for people that look for no-frills
products and quality services at competitive rates.
Azul policyholders also have a vacation checkup, which provides
with free diagnostics or special rates to promote the preventive
maintenance of vehicles at any Porto Seguro repair shop. The latest
initiative of this kind started in November 2011 and lasted until
January 31, 2012. We wanted to make sure that our policyholders could
rely on increased security during vacation trips.
For brokers, in 2011, Azul released several services on its website that
were developed to speed up the brokerage process, including online
rider calculations.
HEALTH & DENTAL INSURANCE AND OHS & OUTPATIENT SERVICES
Porto Seguro Saúde provides São Paulo State companies with end-to-end solutions in the fields
of health, dentistry, outpatient care, and occupational health and safety to contribute to a balance
between the quality of life of employees and corporate investments.
Highly qualified physicians in a wide network, comprehensive coverage, and a number of benefits,
advantages, and programs for disease control are some of the hallmarks of our health insurance
product. For dental insurance, management is 100% online, rates are affordable, and we operate
across Brazil.
Our occupational health and safety services monitor the health risks of employees, process
claim online, and manage actions to reduce the accident prevention factor (FAP, acronym in
Portuguese). In order to help control loss ratios, we also offer expert advice on the deployment
and coordination of outpatient facilities.
BASIC LINES
We provide our policyholders with a wide range of insurance policies that aim to protect both personal and corporate equity. They include the following:
Homeowners’ Insurance
In October, Porto Seguro – the leading company in homeowners’ insurance, according to the Brazilian Federal Department of Insurance
(SUSEP, acronym in Portuguese) – released Porto Seguro Residência Veraneio, a homeowners’ insurance with coverage and services specific to
vacation homes. It basically covers damage stemming from fire, explosion, and smoke. Policyholders can also purchase additional coverage for
perils such as electrical damage, theft, and broken glass. This product also provides our policyholders with support packages, which include
services by electricians, plumbers, and locksmiths, which are available according to the packages policyholders buy and the geographic scope,
as well as a vacation home checkup, with hydraulic and electrical testing, lamp replacement, and lock and hinge lubrication.
Commercial Insurance
Porto Seguro Empresa – ranked third in commercial insurance, according to the Brazilian Federal Department of Insurance – protects your property
effectively and securely at a low cost. We cover you against fire, smoke, and explosion, among other additional coverage options, and give you the
necessary peace of mind to focus solely on growing your business. This line is also available for bars and restaurants as well as hotels and inns.
Condominium Insurance
This line of insurance is tailored to vertical or horizontal residential, commercial, mixed-use, office, apartment, and apartment hotel condominiums.
With multiple payment options, this affordable line of insurance covers the condominium, the building manager, and the employees. In addition,
when purchasing it, you get amenities, benefits, free emergency services, as well as favorable rates and payment conditions.
Porto Seguro S.A.
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2011 ANNUAL REPORT
Other Property Insurance Policies
Our Porto Seguro Event Insurance policy covers both policyholders and
third parties for events from beginning to end. It is ideal for indoor, semioutdoor, and outdoor social, sports, technical, promotional, and religious
events. It meets the needs of the individuals and corporations that provide
services while organizing, promoting, or staging events. Moreover, you
can choose additional coverage options against installation, assembly,
disassembly, and catering liability, among others.
Farm Insurance
This line of insurance protects orchards and vegetable gardens against
hail and the subsequent drop in the value of property and crops
because of reduced produce quality. We offer you two (2) options:
orchards and vegetable gardens. In the event of loss, both compensate
you for the expected profits from the sale of crops.
Portable Equipment Insurance
Our Porto Seguro Portable Equipment Insurance policy protects
you against damage to laptops, tablets, smartphones, cameras, and
camcorders. Our policyholders can also ask Descarte Certo Soluções
e Serviços S.A., a business partner that sorts and recycles this type of
material, to collect electronics at no cost. This service applies to cities in
the Brazilian states of São Paulo, Rio de Janeiro, Minas Gerais, and Paraná.
Devices are limited to two (2) during the term of a policy.
Contract Surety Bond
In the event of breach of contract, this provides you with bid bonds,
performance bonds, supply bonds, maintenance bonds, customs
bonds, court bonds, license and permit bonds, and ERISA bonds. It was
developed for companies, courts, as well as government and quasigovernmental organizations to streamline their operations.
Builder’s Risk Insurance
Porto Seguro Builder’s Risk Insurance was designed to give buildings,
additions, or renovations an ideal coverage, including against damage to
third parties. We cover all the perils inherent in these projects, including
fire, faulty workmanship, sabotage, aggravated theft and larceny, and
windstorm. There are additional insurance options as well, such as
coverage against damage from riots or strikes, debris removal, and fire
after the project was completed, among others.
Extended Warranty
One of the products in this line is builder’s risk insurance, which, in 2011,
started having new terms and conditions to make it easier to buy it. This
product now offers policyholders increased flexibility to choose optional
coverage according to the project needs, the ability to buy a policy for
jobs with up to five (5) underground storeys, and a maximum insurance
coverage limit of forty million Brazilian reais (BRL 40,000,000.00) from
twenty-five million Brazilian reais (25,000,000.00).
Motor Trade Insurance
Our Porto Seguro Motor Trade Insurance policy provides you with
segment-specific coverage, including for motor vehicles on display, facilities,
machinery, and equipment. It was especially designed for dealerships and
franchises that sell cars, motorcycles, trucks, and tractors. There are twentytwo (22) available coverage options besides the basic coverage.
Event Insurance
ANNUITIES AND RETIREMENT PLANS
By following the concept of personal and family protection, our annuities and retirement
plans meet the needs of clients that are concerned with the current and future wellbeing of their families. Our options include the Brazil-specific Roth (VGBL, acronym
in Portuguese) and traditional (PGBL, acronym in Portuguese) individual retirement
accounts, as well traditional life insurance policies for both corporations and individuals.
Retirement Plans for Individuals
The Porto Seguro Previdência Individual Roth and traditional individual retirement accounts
(VGBL and PGBL, acronyms in Portuguese) are plans that allow clients to plan for a more
peaceful future, either to ensure a certain standard of living during their retirement years
or to invest in a business of their own. With the diversity of our investment funds, they can
meet the needs of any investor profile, from conservative to bold.
It also covers plan holders for death, double indemnity, total permanent disability
or partial disability due to an accidental injury, sickness indemnity, death benefit,
income protection insurance, and individual or family burial insurance. In
addition, it also provides plan holders with health and well-being benefits.
Porto Seguro S.A.
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2011 ANNUAL REPORT
Retirement Plans for Kids
Porto Seguro Previdência Infantil covers plans that allow you to accrue funds to help educate minors and set them up for professional success. With
the diversity of our investment funds, we offer our clients two plan options: PGBL Futuro Garantido and VGBL Futuro Garantido.
We also provide plan holders with exclusive benefits, such as Escol@ Online – educational services and contents with around-the-clock access over
the Internet to help them study and prepare for their SATs –, 24-Hour Assistance for students – which make sure children are in a position to keep
going to school and get medical treatment in the event of an accident –, and family protection coverage – death, disability, income protection, death
benefits for minors, and family burial insurance.
Vida Mais Mulher
This product was especially designed for women and is composed of the guarantees of a traditional life insurance with exclusive benefits.
Policyholders rely on a fifty percent (50%) indemnity based on the limit of liability in the event of a cancer diagnosis (except for skin cancer) to help
them get treatment or do as they please. If they want to, we help them forward their test results to another physician for a second medical opinion.
After they purchase this policy, policyholders can also enjoy the following: around-the-clock travel assistance, emergency home assistance, and
monthly drawings of twelve thousand Brazilian reais (BRL 12,000.00) – gross amount – in capitalization bonds. Additionally, you can enjoy the Living
Well Program, which is oriented towards the quality of life of women, with discounts in gyms, drugstores, beauty clinics, theatrical performances
sponsored by Porto Seguro, and partner restaurants.
porto seguro aluguel
Porto Seguro Aluguel is a widely acclaimed product that has been in the market for 20 years and it replaces
other rent guarantees with additional benefits. Our rent guarantee insurance complies with Article 37 of the
Brazilian Tenant Act, which entitles the landlord to recover any loss of rent stemming from a tenant’s default.
Therefore, the said piece of legislation entitles landlords to collect back rent and any fees and penalties
outstanding. This insurance policy also covers policyholders for early termination fees, damage to property, as
well as interior and exterior painting.
porto seguro TRANSPORTES
These are products and services for carriers or shippers that add reliability and security when
transporting goods. We provide business owners with Simplified Shipping Insurance, which is
oriented towards small and midsize businesses; Domestic Cargo Insurance, which gives them
coverage for damage to goods in transit across Brazil; and International Cargo Insurance, which
protects import and export operations by air, land, and sea.
We provide carriers with products such as transit insurance, which protects them against
damage to third-party goods in covered accidents; motor truck cargo insurance, which
compensates owners for stolen or missing cargo; and motor truck general liability insurance,
which contains transit insurance and motor truck cargo insurance in the same policy.
These policies encompass several perils, from collisions to overturns to stolen cargo, and offer
policyholders exclusive benefits, such as support stops at every sixty (60) miles on the main
Brazilian highways and cargo assistance in the event of an accident.
Carrier Awareness
Porto Seguro Transportes promotes the Carrier Awareness Program, a set of services with a preventive focus that covers healthcare and quality
of life for truckers; vehicle maintenance; and guidance on how to avoid or what to do in potential dangerous scenarios on the road.
These training sessions are given at the premises of insured companies, include theoretical and practical topics, and address issues such
as defensive-driving techniques, the effects of sleep, initiatives to prevent cargo theft, among others, to prepare drivers for a safer driving
experience. It also covers healthcare, such as audiometric, glycemic index, BMI, sight, and blood pressure tests. During meetings, trucks also
undergo maintenance services, such as lamp replacement, rain repellent glass treatment as well as inspections of interior and exterior.
Porto Seguro S.A.
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2011 ANNUAL REPORT
Porto Seguro Shipping Insurance
In 2011, the new feature for inland marine insurance was Porto Seguro shipping insurance, which was released in September for small and midsize
businesses that own goods in manufacturing, retail, and services. It stands out for its flexibility during negotiations and the free tow truck service
in case of a road accident within a radius of one hundred twenty (120) miles from the location where the event took place. It ensures transport
operations by air and land with a wide range of basic and additional coverage.
Monitored Transportation
Besides tracking and monitoring with several technologies, we also released Isca Eletrônica, a tool that was designed to make it easier to locate
cargo by using our Monitoring Center, and Isca Autônoma, which stands out for working regardless of having a tracking device installed in the
vehicle carrying the goods.
FINANCING AND CREDIT CARD
This includes vehicle financing and auto loans (auto refinancing), payday loans, and personal
loans. Moreover, there is the Porto Seguro Visa International card, which has around 900,000
holders and the lowest default rate in the marketplace. With this product, which is available
in three versions, clients accumulate points in a Customer Relationship Program that give
them discounts on auto insurance, among others. When policyholders use the card to pay
for new insurance policies, for instance, they get a five percent (5%) discount on the net
premium amount. When they renew their policies, they also get a five percent (5%) discount,
provided that they have not used the card in the previous twelve (12) months. Rebates may
increase by redeeming accumulated points with daily card use. According to the scope of
the tow truck service for vehicle inspection procedures, in 2011, Porto Seguro Visa started
offering our policyholders the option of having a tow truck take their cars to the local vehicle
inspection site.
Credit Card
You can use your Porto Seguro Card in thousands of establishments in Brazil and abroad. When you use your credit card, you accumulate
points in our Loyalty Program, which can then be exchanged for several products, services, and discounts, such as those offered for Porto
Seguro Auto Insurance policy renewals, deductibles in the event of loss, and services at our repair shops. Our Porto Seguro Card is available in
three international versions: Classic, Gold, and Platinum. Each version has specific benefits.
You can also rely on our Porto Seguro Convenience Center, where you can request services, including premium ones, such as the installation
of appliances and interior-design items, arrangement, repair of electronics, among others, to make your everyday life more practical. Providers
that follow the Porto Seguro quality and service standards deliver these services. You can pay for these services by using your card in up to four
(4) zero-interest installments with a thirty percent (30%) discount or the points you accumulated in our Loyalty Program.
Vehicle Financing
Our Porto Seguro Vehicle Financing facilities offer you simple and streamlined conditions to purchase vehicles from all manufacturers and
models, both brand-new and used, as well as an outstanding customer service experience at competitive rates. You are also entitled to
benefits, such as points in our Porto Seguro Credit Card Loyalty Program, optimized rates by profile, document pickup services, free expediting
services, a thirty-six percent (36%) insurance discount, financing of up to one hundred percent (100%) of the value of the vehicle, and up to
sixty (60) months to repay loans.
consórcio
We establish consórcio groups for real estate, cars, and professional equipment. We
manage groups composed of people that save money to buy real and personal property.
In 2011, we started trading consórcio bonds estimated between two hundred thousand
Brazilian reais (BRL 200,000.00) and four hundred thousand Brazilian reais (BRL 400,000.00),
with a fifteen percent (15%) management fee, to increase the alternatives available to client,
who are increasingly choosing this type of facility to buy real estate. We have also been
providing more facilities for cars. Due to better car sales, we released a new plan, which
enables consórcios for premium vehicles ranging from fifty-eight thousand Brazilian reais
(BRL 58,000.00) to one hundred fourteen thousand Brazilian reais (BRL 114,000.00) with up to
seventy-two (72) months to pay.
Porto Seguro S.A.
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2011 ANNUAL REPORT
Take Your Money to the Right Place Campaign
Launched in July, this campaign aims to highlight the benefits of consórcio and promote it as a smart investment option to purchase real estate.
The idea is to show that consórcio provides clients with various possibilities when purchasing vehicles, real estate, and professional equipment,
such as low rates, zero-interest installments, and long installment plans. Furthermore, clients are guaranteed to get loans easily and are no more
subject to changes in rates because of currency fluctuations.
PROTECTION AND MONITORING
Porto Seguro Alarmes Monitorados has a security system to protect homes, condominiums,
and business of all sizes. This company employs experts in the development of electronic
security strategies, who will use the most appropriate equipment for the property
characteristics, including motion detectors and cameras.
For vehicle monitoring, we developed a DAF-V tracking device with a system that allows
you to locate, access, and control vehicle information over the Internet.
porto seguro investimentos
Porto Seguro Investimentos, a Porto
Seguro company, specializes in asset
management and financial consulting.
Established in 1996, it is a prominent
independent management firm in Brazil,
with a volume that exceeds BRL 8.5 billion
in assets under management and leading
operations with institutional, privateequity, and retail investor.
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Porto Seguro S.A.
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2011 ANNUAL REPORT
04.
SUSTAINABLE COMPANY
Sustainability at Porto Seguro
We invested in social- and environmental-responsibility initiatives even before it dominated the discussion between corporations, governments, and
society. Since 1998, our corporate strategy includes developing our target audiences, implementing initiatives that respect the environment and
contribute to its protection, and tying these to a solid economic performance.
This year, during a lunch party with Jayme Brasil Garfinkel, our CEO, a group of employees indicated that they intended to create volunteering
projects. This idea was fully supported by us and this group started holding meetings every fifteen days to put it into practice while attracting
more people. In light of this movement, we redoubled our socially responsible efforts by opening, also in 1998, the Casa Campos Elíseos Melhor, an
institution oriented towards education, professional training, job creation, and income improvement for the residents of the surrounding areas of
Campos Elíseos, a São Paulo neighborhood where we are based.
In 1998, we consolidated our commitment with initiatives like this, which also included environmental protection, when we developed our 2012
Vision Statement, a prospective project that was created to guide our growth in the years to come. Over time, our social and environmental initiatives
grew in number, encompassing and benefitting more people in several fields of activity.
The 2012 Vision Statement language was revised in 2010, but the idea of turning Porto Seguro into a benchmark for client satisfaction, growth,
organizational climate, and social responsibility in the markets where we operate was still there. This goal grew within Porto Seguro when we
created sustainability guidelines and we required direct reporting to the board of directors. These efforts show how strategic the search for business
continuity through general growth is for us. In addition, when we revised our Mission Statement in 2011, we added a remarkable issue, social and
environmental responsibility, to the language. It permeates all the services we deliver to our clients.
Corporate Social Responsibility
Our corporate social-responsibility initiatives are chiefly based on education and involve many stakeholders, from our employees to the
surrounding communities. The idea is to promote growth through knowledge.
PERSONNEL DEVELOPMENT
In 2011, we ended the year with 13,291 employees.
STAFF
Porto Seguro S.A.
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2011 ANNUAL REPORT
DEVELOPMENT AND TRAINING
Acknowledging the importance of education and professional training, in 2011, we instead around BRL 5.1 million in scholarship grants for
undergraduate, graduate, and language school, aiding, on average, 1,400 beneficiaries throughout this period, which is roughly equivalent to
11% of our staff.
We also invested in development programs, which cover courses, lectures, and conventions, led by market institutions. We have devoted
291,784 hours to such efforts, which were attended 42,421 times.
In order to develop leaders, we work closely with the Dom Cabral Foundation, where vice presidents, officers, superintendents, and managers
participate in the Business Management Development Program. There are six modules that carry a credit of 104 hours. Around 150 leaders
have already taken part in this initiative.
In 2011, we have invested roughly BRL 3.3 million in on-site and distance training sessions for our staff.
Apprenticeship
In 2003, we adopted the Young Apprentice Program, an initiative to encourage compliance with the Brazilian federal acts 10097 and 5598 from
December 2000 and 2005, respectively. These acts changed the Brazilian labor laws and allowed employers to hire young people from ages 14 to 24.
In 2011, we hired 239 apprentices in association with several institutions, the most prominent of which was Ensino Social Profissionalizante (ESPRO).
Effective Inclusion
We make tireless efforts to include people with disabilities by generating new inclusion opportunities in the job market. In 2011, we hired 169
people with disabilities and promoted 46, thus ending the year with 352, in total.
Internship Program
Created in 2009, this program aims to attract young talents to prepare them to play a role in our several departments. These young professionals
undergo a stringent development program. During the first year of the program, we hired 14 young people, out of whom 13 were put on the
payroll. This success made us hire 22 interns in 2011.
Customer Service School
Created in 2011, this school trains professionals that join Porto Seguro as customer service representatives. Training lasts two months and is
structured around three pillars: technique, where students get key information on the products they will support; practice, which includes
simulations and real calls with monitoring; education, which covers contents such as written and verbal communication skills, behavioral
issues, among others, to boost professional development according to our philosophy. Since August 2011, we have hired 179 customer service
representatives, out of whom 172 were put on the payroll.
PERFORMANCE MANAGEMENT
In 2011, our performance management for leaders focused on their compliance with our philosophy and core values. For this audience, the
quality of this process was enhanced with specific courses and training sessions. For other positions, we kept the same follow-up model based on
ten business competencies.
In 2011, our performance management efforts, which are the basis for our personnel management model, were extended to Porto Seguro
Uruguay and Itaú Auto e Residência, thus covering 84% of our eligible audience.
Porto Seguro S.A.
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2011 ANNUAL REPORT
Occupational Safety and Health
This department aims to check up on the health of employees
constantly with periodic physical examinations and changes in roles,
among other initiatives. Besides complying with the law, we track
the general health of this audience and, based on this, we develop
educational campaigns oriented towards health prevention and we
reduce prolonged absenteeism.
BENEFITS
We understand that, currently, benefits play a key role in our employee
retention efforts. This is why we consistently follow up on our staff’s
needs and strive to comply with the items contained in collective
bargaining agreements and the applicable laws while studying new
benefits and keeping the existing ones.
In this process, we must keep up to date with the best practices from
other companies in the marketplace to promote our development and
internal improvements in these fields.
Our Occupational Safety team is in charge of analyzing the
conditions where our employees discharge their duties, chiefly from
an ergonomic standpoint. With these assessments, we establish
improvement actions in association with Occupational Health and
we work on guidelines on a correct posture during the workday,
more appropriate furniture, among other things. In addition, we
consider and follow up on all the incidents involving work and
commuting accidents (which include the commute home, to guide
employees through the precautions they must take when driving or
using public transportation.
QUALITY OF LIFE
We believe that employee satisfaction also happens because of qualityof-life incentives. This is why we give our employees opportunities to
promote their well-being.
In 2011, 15,151 people participated in the following events of the Quality
of Life Program:
Social Service
We rely on a social service that aims to help employees in delicate
situations, such as hospital admissions, death in the family, financial
stress, leaves of absence, among others. We want to provide them
with solutions at the corporate and government levels and help them
find assistance from nongovernmental organizations that somehow
support individuals.
Introducing Porto
For six years, we have been opening our doors twice a year so
employees can bring their families and introduce them to their work
environment. Several attractions for kids are organized.
June Festival
The Porto Seguro Jamboree happens every year in June. On its tenth
edition, in 2011, it brought 1,922 people together, including employees,
service providers, relatives, and friends. This event had traditional stands
from social institutions as well as games and live concerts.
Following up on employees on leave makes it easier to submit the
documentation and prevents them from worrying about the red
tape. Thus, professionals are free to take care of their health in a more
objective way.
Footrace
In 2011, we participated in 10 footraces with 1,750 runners, including
employees and service providers. We won a trophy as the most
represented staff, with over 158 applicants per race.
Internal-Customer Satisfaction Survey
Seven years ago, we implemented an internal-customer satisfaction
survey to identify the quality of interdepartmental relations and
processes. This survey is conducted every two years and is composed
of two steps: building a relationship network where each department
shows who would like to make an assessed and who would like to be
reviewed and opening a link to respond to the survey.
Porto Seguro Culture and Recreation Room
With this room, we want to foster integration, coexistence, recreation, and
culture. The idea is that users not only visit the library, but also the room’s
shared space, where they can take fitness, yoga, and dance classes.
In 2011, this survey was conducted with all our leaders in Brazil, who
involved their teams and had them help analyze the quality of service
provided by departments.
Currently, our Porto Seguro Culture and Recreation Room receives
around 216,897 visits a year from employees and third parties that seek
both cultural development and entertainment and want to check the
newest products and services offered by our partners.
All in all, 74% of leaders participated for a total of 3,874 reviews, with
an overall likeability of 74.6%. Based on the results of our survey,
we will prepare action plans to exchange feedback between the
departments, improve relationships and processes, expand our
systemic vision, and look for quickness and the ability to solve issues
during the customer service experience, with a positive reflection on
internal and external customers.
Library
Our collection aims to provide our employees and service providers with
educational and cultural enrichment, professional development, and
entertainment in the most varied fields of knowledge. Our collection
contains over 10,200 copies of books, theses, magazines, CDs, and DVDs,
among others, which are available for borrowing and research. In 2011,
we lent 42,656 items.
Porto Seguro S.A.
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2011 ANNUAL REPORT
casa campos elísios melhor
In 2011, we expanded this corporate social responsibility initiative, one of the
oldest and most relevant among the activities we promote, which aims to
provide at-risk individuals aged 16 to 60 from the communities around our
headquarters and our branches with professional training. In addition, this
initiative intends to educate them, teach them how to increase their income,
and raise awareness of citizen issues.
CORPORATE IDENTITY
In order to submit the new language of our corporate mission statement
and philosophy to all our employees and help them understand and
consider each sentence, throughout 2011, 129 groups attended the
Cultivating Our Identity workshop, with 9,123 employees and 36,492
hours of activities.
With these workshops, which were conducted by our leaders and HR,
we reaffirmed our commitment to our core values and the attitudes we
expect from our professionals when doing business.
Throughout 2011, we helped 2,578 people from several São Paulo
neighborhoods, out of which 1,117 were trained in the courses we gave.
We give courses that meet the needs of several professionals, from
hairdressers to administrative technicians. Upon attending the courses,
students with a satisfactory performance go to the job market. In addition
to the activities we carry out internally, there are third-party training sessions,
which are given by the Brazilian Industry Learning Service (SENAI, acronym
in Portuguese). Moreover, we also recommend working-class people
from the communities surrounding our branches to Amigo do Seguro,
an organization that, in association with the Brazilian School of Insurance
(Funenseg, acronym in Portuguese) aims to give students professional
training oriented towards the insurance business and help them get a job.
INTERNAL CONSULTING
In order to make sure that the concepts of our mission statement,
vision statement, and core values are incorporated into the attitudes
of our leaders and employees, our Human Resources Department
relies on consultants. They are experts in professional development
that take action based on our HR processes to manage development
projects and tools and support our leaders during their personnel
management efforts.
The main sources of information for these efforts are organizationalclimate and internal-customer satisfaction surveys.
The Casa Campos Elíseos Melhor also gives arts-and-crafts classes that
take from three to five months and aim to highlight and encourage such
activities as well as boost income generation. Campos Elíseos residents are
among the instructors of several modules, which help multiply abilities such
as painting fabrics using cold porcelain and costume jewelry, among others.
Once classes are over, students are invited to participate in Porto Seguro
bazaars inside and outside the company where they can sell their products.
All employees have access to consultants to share development
issues, difficulties, and concerns, which are addressed discreetly and
confidentially, as applicable.
SERVICE PROVIDERS
We have a Corporate Service Provider Management Department, which
aims to consolidate and control the entire service provider hiring process
for all of our companies. This department also helps managers control
valid agreements to ensure compliance with tax and legal mandates as
well as the appropriate reduction of potential joint and several liability.
Education and Citizenship Awareness
This program, which also takes place in the Casa Campos Elíseos
Melhor, is geared towards children and teenagers aged 7 to 15.
Divided into age groups, they attend several classes – dance, capoeira,
drama, sports, among others – that aim to arouse their interest in
the fundamentals of cooperation and citizenship through a more
appealing learning experience. This includes dance, capoeira, and
drama classes, among others.
PORTO SEGURO VOLUNTEERING GROUP
Our Volunteering Group, which, since 1998, has been bringing
employees, service providers, and brokers together to promote
corporate social responsibility initiatives, is one of the main drivers
behind the increase in sustainability projects at Porto Seguro. In 2011,
we conducted 48 projects, which relied on 1,335 participants and
helped around 72,000 underprivileged people through institutions
from all over Brazil, with donations, educational lectures, and
recreational and quality-of-life programs.
Sports and Aerobics
These classes aim to develop flexibility, strength, and speed as well as
facilitate social integration at the community level. This learning program
is based on sports and cooperative games, which take place at the Casa
Campos Elíseos Melhor court. With this successful activity, we developed
a specific aerobics project for adults, which is called Ginástica na Praça
and takes place at the Princesa Isabel Square.
During the month, the Volunteering Group’s activities are planned
and adjusted at meetings, which are held every fifteen days. Specific
activities are also carried out every fifteen days, generally on Saturdays
in the form of trips for the kids and senior citizens from surrounding
communities, visits to shelters and partner institutions, among others.
Learning Area
This was designed to help, teach, and support students when they are
doing research for homework and school projects. This aims to develop
pleasurable reading habits and language skills through awareness
programs to adjust students to their academic reality and help them
address specific difficulties, eliminating any existing discrepancies.
The traditional activity that the Volunteering Group promotes every
three months is the Color Jamboree, which calls on our employees,
policyholders, and the general public to collect staples, such as
personal-care products, nonperishable food, clothes, toys, or school
supplies. The material we obtain is donated to adults and children from
Campos Elíseos, the São Paulo neighborhood where we are based, or
to institutions that are close to our branches in other Brazilian states. In
2011, we collected 111,621 items.
Porto Seguro S.A.
Drama
These theater games encourage self-knowledge, body awareness,
and improvisation through recreational games, motor coordination,
breathing exercises, new uses for joints, as well as a primer on how to
take and use space.
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2011 ANNUAL REPORT
Dance and Education
This workshop works with several music rhythms, the experiences of
students in school, the surrounding social issues, as well as how they
look as these realities. It helps students loosen up, relax, and socialize.
STATEMENT OF PURPOSE OF ASSOCIAÇÃO CRESCER SEMPRE
Develop abstraction skills, such as the ability to identify,
select, classify, analyze, and synthesize to make the
learning process easier and facilitate the ability to read
and understand the world;
Capoeira
Educational capoeira helps students have learning prospects and goals as
well as improve their motor skills.
Music
In the music workshop, students develop techniques and expression by
approaching various genres and styles, from developing performances
to improvising to learning how to play songs just by listening to them to
reading and writing. Students take flute and guitar lessons.
Raise awareness of the need to observe, explore, and
protect the environment, comprehending and producing
information and realizing that humans integrate it, depend
on it, and transport it;
Help the children expand the way they represent
and express their ideas and feelings, enriching their
repertoire in the fields of the visual arts, general
knowledge, written and oral language, mathematics,
music, nature, society, personal development, and
interpersonal skills;
Oficina de Cinema
With movie showings, our cinema workshop helps kids become aware of
themselves as important beings and their personalities. It also helps their
self-esteem by allowing them to be perceived as unique and original beings
by their peers, which leads them to have a positive opinion of themselves
and gradually improve their communication and expression capabilities.
Entice students into searching for social and cultural
information and making them establish and widen their
social relations while respecting diversity and developing
helpful and collaborative attitudes;
ASSOCIAÇÃO CRESCER SEMPRE
Based in Paraisópolis, in São Paulo’s South Side, the Associação Crescer
Sempre, which we support, adopts a two-pronged approach: one that
meets the needs of children from the community on-site and one
where projects and actions support local public schools.
Create scenarios where students can experience and
respect cultural manifestations while taking part and
interest in them;
This association aids 540 kids aged 4 to 6 and tries to provide them
with experiences that help them shape their personality and have a
stellar performance in the new learning steps. To this end, we adopt
an educational approach that favors intellectual, social, physical, and
emotional development, which is guided by well-established fields
of knowledge, but, at the same time, committed to interdisciplinarity
and transversality.
Suggest the physical and natural sciences as well as
the humanities as a benchmark for constructing and
comparing several phenomena, facts, and objectives of the
world to which students belong;
Prepare projects throughout the year to organize and
systematize knowledge more properly;
In 2008, Associação Crescer Sempre had their first group of highschool students. For the past three years, the association has
admitted 90 students, who attend classes and eat on campus.
They are entitled to uniforms and teaching materials. Living
in Paraisópolis is the initial criterion for enrollment. Additional
requirements for applicants are an entrance examination, an
interview, and a social visit.
Encourage oral skills for children to communicate and
express themselves with increasing clarity and ease;
Encourage the taste for reading as a form of recreation;
Develop the ability to read to unleash the production of
oral and written texts while encouraging and improving the
expressions of students in their different manifestations;
The association engaged the services of SEB Participações S.A. to lead
their academic efforts. Technology, the environment, and tutoring
are key pillars in these educational efforts, which also cover issues
that are raised by society, the media, researchers, and policymakers.
The drive to learn, the commitment to academic pursuits, and the
family’s involvement will pave the way for success. The association
aims to prepare students to make informed decisions on their life
plans to achieve self-fulfillment. This is about providing students with
intellectual and technological instruments to prepare them to play a
role at work and in society.
Porto Seguro S.A.
Encourage spontaneous writing by students and respect
their mental structures from a constructivist standpoint.
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2011 ANNUAL REPORT
The association works with schools on the Educational Partnership Project, which aims to invest in educational hubs in the Brazilian public
education system and social-inclusion initiatives that are committed to the full protection and development of children and teenagers. To this
end, the association works with academic institutions and other entities outside the school community to foster the necessary collaboration
between public and private institutions and society. Their efforts revolve around decentralized and horizontal relations, collective action, and the
development of programs and projects that are geared towards multisectoriality. Thus, democratic principles come to fruition, reaffirming public
policies as well as cherishing and respecting school autonomy while acting on principles of social participation and critical mass.
To that effect, the association works to ensure transparency in their actions and deems organization and participation assumptions key for the
decision-making process. Additionally, it seeks fairness and the common good. Programs and projects where autonomy and interdependence entail
flexibility and respect for the identity of each unique individual are a reflection of the common efforts of Educational Partnership and their partners.
Partnerships in 2011
School
Segment
Period
Professor Homero dos Santos Fortes State School
Physical Education and Education of Young People and Adults – High School
From 1997 to This Day
Maria Zilda Gamba Natel State School
Physical Education II and High School
Governor Miguel Arnaes State School
Physical Education I
cidade portinho seguro
Cidade Portinho Seguro is a travelling area for children to learn how to respect the rules of the road in an interactive way. They can ride their bikes
around a track that simulates city streets, with intersections, traffic lights, crosswalks, and other elements that can be typically found in streets and
avenues. A group of characters also interacts with children by using videos, comics, and the website www.cidadeportinho.com.br.
In 2011, 37,841 children participated in the activities in several cities, such as São Paulo, Rio de Janeiro, Salvador, Natal, Campos do Jordão, Maranhão,
and São Vicente.
BLOOD DRIVE
We also supported the I Bleed for São Paulo Campaign, which took place from June 5 to 20 at Fundação Pró-Sangue stands and hospitals in the
Greater São Paulo Area. Organized by ORAM – Reciclando Vidas, a Jewish organization that promotes social and rehabilitation projects in several
fields, this initiative aimed to encourage blood donation and highlight how important this gesture is. ORAM’s initiative was also supported by the
Fundação Pró-Sangue, the São Paulo Santa Casa’s Blood Center, as well as government bodies.
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2011 ANNUAL REPORT
ENVIRONMENT WEEK
We prepared special events to celebrate the Environment Week
in 2011. On May 31, we started our activities for employees
and service providers with a lecture on Sustainability: Concepts
and Values for Our Lives, which was given by Reinaldo Bulgarelli,
academic coordinator of Social Responsibility at the Getulio Vargas
Foundation of São Paulo (FGV/SP, acronym in Portuguese). On
June 2, we conducted the Grow Your Seasoning workshop, an
environmental-education effort that teaches you how to reuse
materials and grow vegetables at home. On June 5, the World
Environment Day, we conducted a public showing of Peter Pan and
Pinocchio Save Nature, a children’s spectacle that was also a part
of the I Sustainable Soiree, which was carried out by the São Paulo
Office of Parks and Recreation on June 4-5. The purpose of all these
events was to educate attendees about environmental issues in
tune with the actions we had already promoted with employees,
clients, and partners.
Environmental Responsibility
Even though we are essentially a service provider, we also make
an impact on the environment. This is why we try to invest in
environmental-responsibility initiatives that are directly related to our
business, such as Bike Help and Bike Inspection.
However, we understand that this is not enough to build a sustainable
world and, therefore, we must find other ways of educating employees.
Thus, we promote actions such as the Earth Hour as well as cookingoil and battery collection campaigns that can raise environmental
awareness beyond the organizational environment.
BIKE HELP
Auto insurance policyholders can receive Bike Repair services
where simple tasks, which can be performed on-site, are performed
by cyclists. This includes changing tires, filling up, recharging
batteries, fixing simple malfunctions, among other things. Using
bicycles aims to speed up service and contribute to reduced
carbon dioxide (CO2) emissions, the main pollutant that is released
into the atmosphere by vehicles, such as the tow trucks and vans
we use for certain services.
These events took place at our Campos Elíseos headquarters in
downtown São Paulo.
EARTH HOUR
On days with good or partially cloudy weather, the lights at the
buildings of our headquarters and branches are turned off from
11:30 a.m. to 01:30 p.m. We wish to save power during this period
and educate employees about how they can do the same at home.
With this simple action, we already saved 532,000 kWh since we
implemented this program, which equates to the consumption of
2,900 households in one month.
WATER AND ELECTRICITY CONSUMPTION
Besides the Earth Hour, we adopted other measures to reduce our
nominal water and electricity consumption at our buildings. These
include setting a fixed time to turn the air conditioner and the lights on
and off, replacing incandescent light bulbs with compact fluorescent
lamps, educating employees and associates about the best practices
in the use of computers, and deploying energy transformation devices,
such as capacitors, to correct the power factor and help us save on our
energy bill. Newer, more efficient facilities are being built to reduce
the air conditioner load. We also want to use solar screens and curtain
walls, which have been mostly used in the façades of our buildings for
about ten years. We have also been testing LED lamps to save on our
energy bill and eliminate pollution and waste.
BIKE INSPECTION
Like Bike Help, we replaced cars with bicycles to meet the needs of
the auto insurance policyholders in São Paulo that request vehicle
inspections at home. With this type of vehicle, service providers
improve their quality of life, policyholders speed up the process,
and we avoid releasing carbon dioxide (CO2) into the atmosphere.
With Bike Inspection, we no longer release 218 kg of CO2 a month
on average.
In addition, there is also a reduction and a pay-as-you-go program
where power entry equipment that measures peak and trough
levels in consumption and supply voltage from the utility company,
including the relative adjustment between capacitive and inductive
power. These initiatives have been allowing us to cut our nominal
power consumption by up to 26%.
With regard to our water consumption, there are reduction projects
that identify supply system issues and improvement opportunities as
well as reduced water flows, which are reflected in consumption.
Porto Seguro S.A.
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2011 ANNUAL REPORT
Corporate Consumption Monitoring
Since March 2010, we have been monitoring our water, electricity,
and diesel fuel consumption levels at our headquarters. Since we
implemented a utility bill management system, we have been
building a database to compare the performance of each installation.
cards have components that can contaminate the soil when they are
tossed in the trash.
WASTE SORTING PROGRAM
Our Waste Sorting Program has properly disposed of 123 metric tons of
recyclable waste in 2011, a 75% increase over 2010 due to a program
expansion. This increase happened after we installed new waste sorters
at the buildings of our headquarters and branches in the greater São
Paulo and Rio de Janeiro areas.
Indicators include:
Power consumption indicator in kWh/m² (kilowatts-hour per square
meter of office area);
Water consumption indicator in L/m² (liters per square meter of
office area);
ENVIRONMENTAL EDUCATION
In 2011, the Eco Ambiente Portal, which sends social and
environmental information to employees and service providers,
recorded 2,859 hits. This portal is divided into three sections: At
the Company, At Home, and On the Planet. The first one contains
information on the efforts employees and service providers can make
in the work environment, which range from properly positioning
waste in the sorter to reducing the use of resources. In the At Home
section, you will find simple tips and tricks that you can use at home.
In turn, On the Planet addresses potential movement indicators, expert
opinions, and environmental news.
Water consumption indicator in L per capita / day (liters for each
person per day);
Diesel fuel consumption indicator in L/m² (diesel fuel liters per
square meter).
For energy efficiency, our Technical Support Department started a thinclient virtual desktop infrastructure (VDI) project, that is, a process that
allows you to run a number of operating systems in a single piece of
equipment through hardware sharing. In addition to the 50 terminals we
deployed in 2010, we installed another 950 in 2011. This solution allows
us to cut nearly 80% of our power consumption levels. We are also
gradually replacing cathode ray tube (CRT) monitors with liquid-crystal
display (LCD) monitors. Moreover, we have started considering the
replacement of diesel generators with natural-gas generators.
Corporate Mugs
In 2011, we reduced our use of disposable cups by 30%. This decrease
came after we released our collection of corporate mugs, A Toast to
Consumption Awareness!, which were available in five models. We
distributed over 14,000 mugs.
Fabric Bags
In 2011, we released fabric bags to replace plastic bags. Our
employees, brokers, and service providers purchased more than
8,000 bags.
COOKING-OIL COLLECTION CAMPAIGN
In 2011, we collected over 4,000 liters of cooking oil at drop-off
stations we set up at our branches. We store the cooking oil in plastic
and other containers.
PAPER USAGE REDUCTION PROGRAM
In 2011, we saved over 160,000 paper sheets at our headquarters
only. We have been encouraging the use of the back of each sheet for
copies, printouts, and drafts. We have published tips and tricks on how
to reduce the number of printouts on the Eco Ambiente Portal.
All the cooking oil we collect is destined for the preparation of
biodiesel, a renewable fuel. Containers are recycled as well.
With this campaign, we try to educate the public about the issues
of disposing of vegetable oil in the water. Vegetable oil clogs the
sewerage, increases treatment costs, and pollutes rivers and dams.
A single liter of oil can contaminate thousands of liters of water.
DON BOSCO SHELTER
Since 2007, we have been supporting the Don Bosco Shelter, an
organization of collectors of recyclable materials that is maintained by the
Salesian Liceu Coração de Jesus school. This shelter aids 57 people and
helps them increase their income and improve their quality of life with
social-inclusion initiatives. Additionally, it contributes to environmental
protection through proper waste disposal. In 2011, 12 meetings were held
to strengthen the group and engage shelter users to train them and have
them discuss the creation of a future recycling co-op.
PLASTIC-CARD AND BATTERY RECYCLING
We provide you with drop-off boxes for plastic cards and batteries at
our branches and some repair shops for the appropriate disposal of
these materials. All in all, there are 112 drop-off boxes all across Brazil.
The materials we collect are ground and sent to recycling companies
to manufacture several plastic items, salts, and oxides, which are then
reused by the very electronics industry.
In 2011, we collected over two metric tons of waste. We want to
educate our policyholders and the public about the importance of
properly disposing of such materials, since batteries and magnetic
Porto Seguro S.A.
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2011 ANNUAL REPORT
GREENHOUSE GAS INVENTORY
In 2011, we continued our efforts to reduce our carbon emissions that we started in 2008, when we made our first greenhouse gas inventory.
To this end, we followed the Brazilian greenhouse gas protocol guidelines, the most used tool for this kind of measurement. Inventory results
encouraged moves such as the replacement of our fleet with flexible-fuel vehicles and the adoption of ethanol as a standard fuel. This
information will be available on www.registropublicodeemissoes.com.br on 5/31/2012.
AUTOMOTIVE WASTE MANAGEMENT
In 2011, we purchased two Sprinter vans to expand our Automotive
Waste Management Program.
STATEMENT OF PURPOSE
Upon purchasing these vehicles, our collection efforts were extended
to 54 Porto Seguro Automotive Centers and other ten repair shops
for auto losses. We disposed of over 200 metric tons of scrap properly.
Eliminate the risk of environmental pollution from hazardous
waste coming from the Porto Seguro automotive centers;
In collaboration with the Vira Lata co-op, this program picks up scrap
from Porto Seguro automotive centers, disassembles it, presses
it, and disposes of it properly to help protect the environment
and avoid the misuse of parts. This initiative also promotes socialinclusion and income generation efforts. On average, almost 70 Vira
Lata co-op members benefit from the recycling revenue.
Donate scrap iron to recycling co-ops, thereby generating
income, promoting social inclusion, and giving a social and
environmental role to the program and the operations of
our Porto Seguro automotive centers;
The partnership between us and the co-op started in 2007 after we
made a donation of recyclable materials from our headquarters and
branches in the Greater São Paulo Area. Automotive scrap has been
collected since 2008. We also help the co-op by providing them
with administrative consulting services, giving them donations, and
purchasing equipment.
Adjust and standardize the storage and disposal
infrastructure to make it environmentally suitable for waste.
Handle all hazardous waste (Class I);
SQUARE MAINTENANCE
We have promised to maintain the green areas of six locations in São Paulo:
The flowerbed at Manoel Monteiro de Araújo Street in Vila Jaguará;
The David Raw Square near Pacaembu Avenue;
Carvalho Pinto Avenue in Penha;
The central flowerbed at Rio Branco Avenue from Eduardo Prado Road to Duque de Caxias Avenue;
The Princesa Isabel Square and the Largo Coração de Jesus Square in Campos Elíseos;
The central flowerbed at General Edgar Faccó Avenue in Pirituba.
In 2011, we also started a tree planting project around our headquarters.
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2011 ANNUAL REPORT
CULTURAL RESPONSIBILITY
We understand that education and culture go hand in hand. Therefore, we invest in spectacles, concerts, and other kinds of activities that may
enlighten as well as entertain people.
For us, one of the main criteria for choosing cultural projects is: how groundbreaking is it? Instead of making a decision based on the presence of
household names, we rather invest in projects of all sizes that may be significant and original. For instance, Tamara, a 1993 play, was staged in the
manor at our headquarters and used its different rooms.
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FROM CAPYBARA TO TEACHER
Located at our São Paulo headquarters in Rio Branco Avenue, the Porto Seguro Culture Club held From Capybara to Teacher, a photo
exhibit, from November 10, 2011 to February 10, 2012, a sample of trips across five Brazilian states that the Teatro de Perto Company made
between 2010 and 2011. The exhibit displayed 21 pictures by Priscila Prade and texts by actor, author, and director Marcello Airoldi, the
brain behind the group. The public was able to visit the exhibit for free on weekdays and during the weekends.
CULTURAL SPONSORSHIPS
Our cultural efforts stand out for treasuring certain kinds of artistic expressions and translate into cultural sponsorships. We intend to encourage
the local art scenes and benefit clients and guests by giving them discounts for the initiatives they support.
In 2011, we funded over 800 projects. The efforts we sponsored include plays, musicals, photo exhibits, concerts, and folk culture events.
Porto Seguro S.A.
35
2011 ANNUAL REPORT
05.
BUSINESS PERFORMANCE
INDUSTRY SCENARIO AND PROSPECTS
Even though Brazil recorded a worse-than-expected gross domestic product (GDP) in 2011, the Brazilian economic performance exceeded
that of the Eurozone and countries like the United States and Japan. This fact shows the Brazilian increasing ability to protect itself against
external economic shocks and grow in spite of the international crisis.
The consistent optimism in Brazil for the past few years, which is expected to continue in the near future, is directly related to the so-called
demographic bonus. In short, this is a period when the workforce largely exceeds the population of dependents, which is composed of senior
citizens and children. To give you an idea, currently Brazil has two workers for each dependent. According to experts, the demographic bonus
is the ideal condition for economic development.
However, for this condition to translate into actual results, we must consistently invest in infrastructure and education to reaffirm the
prominent Brazilian role in the global economy. Once these challenges are overcome and considering a twenty-year estimate that Brazil will
have a larger concentration of people aged 15 to 60 who, with more jobs and the ability to meet their most basic needs, will be able to amass
more wealth, the insurance industry forecasts a scenario of increased growth opportunities.
Insurance penetration in Brazil is still low. Currently, only 33% of the Brazilian auto fleet have insurance on average. The São Paulo and Rio de
Janeiro markets are the most mature, but even then there is room for growth. To this end, there are trends insurers must keep watching. The
most relevant issues include monitoring the rise of the Brazilian new middle class (the C class) and the increasingly important role it has been
playing as well as creating products and payment methods that are tailored to lower-income segments. At the same time, we must consider
the effects of environmental degradation, which, because they are already intense in some areas, have been affecting calculations, losses, and
premiums. Furthermore, we must also reaffirm the importance of insurance to protect property and life in Brazil.
In spite of these obstacles, we expect auto insurance, which is among the most popular in Brazil, to grow between 9% and 11% per year until
2013. Life and disability insurance should grow between 9% and 11% per year during the same period. For retirement products, an average
increase of 10% is expected through 2013, which will depend on an increased awareness from the public, who still does not prioritize retirement
products. In general, property insurance is expected to grow, on average, 7% over the same period, but this is contingent upon awareness.
In Brazil, inland marine insurance is mandatory, but over 50% of carriers or 50% of shipments are not expected to meet requirements
because of, basically, ineffective oversight. However, this scenario might be reversed because of increased professionalization and more
stringent demands from the market. The annual growth rate through 2013 should be between 5% and 7%. Insurance for major risks and
bonds have a lot of potential, with an expected annual growth rate between 20% and 40% from 2012 to 2013, because of the World Cup
and the Olympics. Farm insurance should grow between 12% and 20% through 2013 because Brazil is now a bigger global producer of
food and bioenergy.
However, for these estimates to come true, economic performance and demographic bonus forecasts must materialize. Brazil must keep
evolving and increasing the income of the population and the insurance market and, specifically, it must keep seeking rules and resolutions
to enable the development of products that can reach increasingly large audiences from several niches and income segments. We must
also spread the insurance culture in the main urban centers and the more peripheral areas. Thus, our predictions for the years to come
follow the same optimism.
Porto Seguro S.A.
36
2011 ANNUAL REPORT
OUR PERFORMANCE
The year 2011 was filled with accomplishments and challenges.
The environment of economic growth in Brazil, in spite of the crisis
in developed countries, continued to propel the insurance market,
which saw a nearly 16% growth over 2010. The insurance industry
penetration in Brazil represents development opportunities, chiefly
due to the expansion of the emerging Brazilian middle class.
their dependents amounted to 567,000, a 27% increase over the 447,000
figure in 2010. In 2011, our net income added up to BRL 580 million,
recording a 6.9% decrease over the BRL 623 million we earned in 2010. This
decrease is mainly due to an increase in retained loss expenses and the
necessary administrative costs to sustain our outstanding service strategy.
The year 2011 was also filled with investments. We repositioned the
Itaú Auto e Residência brand, which now relies on special benefits
for Banco Itaú account holders. We continued to invest in the
improvement of our research park and our operational and business
relations with insurance brokers. Additionally, we enhanced both
results and operational structure of other businesses, such as credit
card, financing, consórcio, monitored alarms, among others. Income
from such businesses grew by about 27% over 2010.
Within this context, 2011 continued to single us out in terms of quality
of service, service delivery, and convenient solutions for more than
six million families and corporate clients. We work with three auto
insurance brands: Porto Seguro, Itaú Auto, and Azul Seguros. With
these, we meet the various needs of our different audiences, our
insurance brokers, and our policyholders.
I would also like to emphasize that we established Porto Seguro
Telecomunicações S.A., a company that provides phone services. We
optimized the internal management of cell phone costs. In addition,
we seized the opportunity of bringing together our insurance
products to add mobility to our clients and insurance brokers.
We ended 2011 with nearly 4.1 million insured vehicles and a total of
over 11.6 million items covered by our products, which represents a
32% increase over the previous year. Earned premiums amounted to
BRL 8,426 million, with a BRL 661 million or 8.5% increase over the sum
of BRL 7,765 million in 2010, which does not factor in the Brazil-specific
Roth individual retirement accounts (VGBL, acronym in Portuguese).
Within the context of campaigns and actions, I would like to
emphasize the Porto Vias campaign, a service that provides drivers
with real-time traffic information over notebooks, smartphone
applications, or desktop computers. The driver, either in São Paulo or
Rio de Janeiro, chooses the best way to get to his or her destination.
I would also like to emphasize the Trânsito+Gentil movement, a Porto
Seguro Auto initiative for drivers to avoid aggressive behavior and
treasure a more tolerant attitude while driving as well as a qualityof-life program for employees, training for service providers, and
policyholder benefits, such as cultural and food discounts.
In addition, we took on the challenge of managing Itaú Seguros' tow
truck and guaranteed hire car services. Now, three companies are
managed by only one platform. The integration of auto insurance
assistance resulted in a 28% growth in the volume of tow truck and
guaranteed hire car services that are managed by Porto Socorro.
Our results also singled us out in terms of growth of total revenue,
which, including net finance revenue, added up to BRL 10,155 million,
a growth of BRL 979 million or 10.7% over the BRL 9.176 million during
the previous year. In 2011, earned premiums amounted to BRL 5,747
million, an increase of BRL 312 million or 5.8% over the sum of
BRL 5,434 million in 2010.
I would like to thank all of our employees, providers, and
insurance brokers, who did their job with dedication and
commitment, during 2011.
In turn, earned premiums for the health insurance segment worked
out at BRL 852 million in 2011, with a BRL 137 million or 19.2% increase
over the sum of BRL 715 million in 2010. In 2011, our policyholders and
,
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Porto Seguro S.A.
37
2011 ANNUAL REPORT
TOTAL REVENUES
EARNED PREMIUMS
(In Billions of BRL)
4.1
4.8
2007
2008
8.6
7.9
5.8
6.8
5.7
4.9
2009
2010
10.2
9.2
2011
2007
Evolution of Net Income
2008
2009
2010
2011
RoAE*
(In Millions of BRL)
35.1%
623 660
29.5%
580 616
25.1%
460 420
19.6%
19.2%
290 318 328
249
15.4%
12.9%
150
2004 2005 2006 2007 2008
2009
With Business Combination
2010
2011
2004 2005 2006 2007 2008
Without Business Combination
7.3%
5.3%
1.90
1.82
314.3
1.78
35.5%
1.00
3.2%
3.8%
30.4% 32.3%
32.3% 31.6% 31.4%
40.0%
153.8 141.9
3.0%
62.3
2004 2005 2006 2007 2008 2009 2010 2011
Earnings Per Share
264.1
4.5%
1.9%
2004 2005 2006 2007 2008 2009 2010 2011
Dividends
Payout
Auto Insurance Market Share
27.1% 26.9%
12.7% 13.1% 12.2%
9.4%
50.0%
115.9
103.2
89.3
Dividend Yield
Total Insurance Market Share
7.9% 8.0% 8.4%
2011
( In Millions of BRL )
1.26
0.65
2010
Evolution of Dividends and JCP
9.6%
1.08
2009
With Business Combination
Without Business Combination
*Return on average equity
Earnings per Share and Dividend Yield
2.00
14.7%
16.6% 12.7%
10.5%
16.8% 16.9% 18.2%
8.7%
20.3% 20.2%
22.2%
2004 2005 2006 2007 2008 2009 2010 2011
2004 2005 2006 2007 2008 2009 2010 2011
(Except for Health and VGBL)
(Sum of Porto, Itaú, and Azul shares )
Homeowners' Insurance Market Share
Investment Portfolio
27.0% 27.7%
7.1
1.4
4.1
12.5%
6.7%
5.4% 5.6% 6.1%
2.7
0.5
8.1%
2.2
0.8
1.0
3.3
3.5
2.1
6.0
6.1
4.6
1.2
0.6
2.5
8.2
1.6
3.4
5.7
2004 2005 2006 2007 2008 2009 2010 2011
2004 2005 2006 2007 2008 2009 2010 2011
Other Assets
(Sum of Porto, Itaú, and Azul shares)
Porto Seguro S.A.
3.1
4.5
7.6
38
2011 ANNUAL REPORT
Retirement Assets
EARNED PREMIUMS
In 2011, earned premiums amounted to BRL 8,562.6 million, with an 8.7% increase over the BRL 7,879.8 million in 2010, which does not factor in the
Brazil-specific Roth individual retirement accounts (VGBL, acronym in Portuguese).
Earned Premiums (In Millions of Brazilian Reais)
2011
2010
Evolution
%2010 – 2011
Porto Seguro Auto
3,267.7
3,055.0
7.0
Itaú Auto e Residência Auto
1,459.4
1,435.4
1.7
Premium by Line
Azul Seguros Auto
1,020.3
944.3
8.0
5,747.4
5,434.7
5.8
Porto Seguro Patrimonial
367.1
340.0
8.0
Itaú Auto e Residência Patrimonial
314.6
266.7
18.0
Total Auto
Azul Seguros Patrimonial
3.6
4.2
(14.3)
Total Property
685.3
610.9
12.2
Bodily Injury Liability Insurance (DPVAT)
300.3
268.8
11.7
Health
852.1
715.1
19.2
Personal-Lines
351.5
320.1
9.8
Financial Risks
248.9
196.2
26.9
Inland Marine
118.8
92.6
28.3
Liability
17.3
11.2
54.5
Farm / Livestock
25.6
47.7
(46.3)
Other
Porto Seguro Uruguay
Total Earned Insurance Premiums without Brazil-Specific Roth IRA
Brazil-Specific Roth IRA (VGBL) Premiums
Total Earned Premiums
0.9
1.2
(25.0)
78.4
67.0
17.0
8,426.5
7,765.5
8.5
136.1
114.3
19.1
8,562.6
7,879.8
8.7
AUTO INSURANCE
Porto Seguro Auto: premiums amounted to BRL 3,267,7 million, a 6.9%
increase over 2010. This performance stemmed from a 10.9% growth in
the insured fleet, which worked out at 2,088,600 in 2011, a factor that was
partially balanced by a 3.5% decrease in the average annual premium due
to a change to the client mix. Our loss ratio grew 2.4% as a result, chiefly
because of an increase in the frequency of theft and larceny, mostly in
São Paulo State.
Itaú Auto e Residência: premiums amounted to BRL 1,459,4 million, a 1.6%
increase over 2010. There was a 0.4% decrease in the insured fleet, which
amounted to 1,064,000 vehicles at the end of the year. Loss ratio fell by 0.2%
over the previous year. This performance, which was relatively stable when
compared to 2010, stemmed from brand repositioning, system integration, and
adjustments to the risk selection criteria and other operational adjustments.
Azul Seguros: premiums amounted to BRL 1,020,3 million, an 8%
increase over 2010. This performance stemmed from a 16.7% growth
in the insured fleet, which worked out at 960,500 in 2011, a factor
that was partially balanced by a 7.4% decrease in the average annual
premium. Our loss ratio experienced a 9.1% decrease, mostly because
of a stronger competitive environment.
Porto Seguro S.A.
39
2011 ANNUAL REPORT
HEALTH INSURANCE
With an increase of BRL 137 million (16.0%)
over the BRL 715.1 million in 2010, earned
premiums for this segment worked out at BRL
852.1 million in 2011. This comes as a result
of a 567,400 (27%) increase in policyholders
and dependents in 2011 over the 446,800
figure in 2010. Our loss ratio amounted to
77.8%, a 7.3% increase over the previous year,
due to an increase in the medical inflation
rate, the utilization frequency, and changes to
policy adjustments, which became annual, in
compliance with the ANS Rule No. 1950.
ANNUITIES AND RETIREMENT PLANS
Annuities: premiums amounted to 351.5 million, a 9.8% increase over 2010. This growth stemmed chiefly from an increase in the number
of policyholders and their dependents. Our loss ratio amounted to 30.3%, an improvement arising chiefly from the cancellation of lossmaking policies for the period.
Retirement: income from retirement plan deposits worked out at BRL 293.2 million in 2011, an increase of BRL 40.6 million (16.1%) over the
BRL 252.6 million figure for 2010. This performance stemmed from a 7.2% increase in the number of plan holders, which were 149,000 in
2011, and in average deposits.
Porto Seguro S.A.
40
2011 ANNUAL REPORT
LOAN TRANSACTIONS
Income from loan transactions worked out
at BRL 211.2 million in 2011, an increase of
BRL 42.5 million (25.2%) over the BRL 168.7
million figure for 2010. This performance
stems chiefly from a 38.2% increase in
credit card transactions. The portfolio with
managed credit transactions grew by 35.9%
and went to BRL 1,616.3 million (including
the sum of installments to mature) from the
BRL 1,187.0 million in 2010.
INCOME FROM DELIVERY OF SERVICES
Monitoring: income from the delivery of electronic-monitoring services amounted to BRL 66.2 million in 2011, an increase of BRL 8.5
million (14.7%) over the BRL 57.7 million figure for 2010. The number of clients experienced a 14.6% increase and jumped to 28,300. In 2010,
clients amounted to 24,700. Our annual income average for service delivery was 10.5% lower in 2011 and worked out at BRL 2,343,700 over
the BRL 2,617,200 figure for 2010.
Consórcio: income from consórcio management amounted to BRL 156.5 million in 2011, an increase of BRL 22.8 million (17.0%) over the BRL
133.7 million figure for 2010. The number of consórcio units that we managed experienced a 41.9% increase and jumped to 89,100 in 2011
over the 62,600 figure for 2010.
Other Income from Services: income from other services rendered pertain chiefly to Crediporto, Porto Seguro Serviços, Porto Seguro
Atendimento, Portopar (Asset Management) and investment property revenues. In 2011, it worked out at BRL 131 million, an increase of
BRL 42.9 million (48.7%) over the BRL 88.1 million figure for 2010. This performance stemmed from an increase in income from all our main
services companies. Porto Seguro Serviços (220.1%) and Porto Seguro Atendimento (77.5%) were the year's highlights.
Porto Seguro S.A.
41
2011 ANNUAL REPORT
Miscellaneous Information
Shares in Brazil
Custodian Bank: Banco Itaú S.A.
Business Relations Management
Av. Brigadeiro Faria Lima, 3400 – 10th Floor
Itaim Bibi - 04538-133 - São Paulo, São Paulo State - Brazil
Note: shareholders are supported by the bank's branch network.
Independent Auditors
PRICEWATERHOUSECOOPERS
Av. Francisco Matarazzo, 1400 - Torre Torino
Água Branca - 05001-903 - São Paulo, São Paulo State - Brazil
Investor Relations
Investor Relations Office
Alameda Ribeiro da Silva, 275 – 1st Floor – Campos Elíseos
01217-010 - São Paulo, São Paulo State - Brazil
Phone: (+55 11) 3366-5323 / 3366-5378
Fax: (+55 11) 3366-1680
gri@portoseguro.com.br
www.portoseguro.com.br
Disclaimer
Any and all relevant facts, result announcements, and other market communications are simultaneously disclosed to the Brazilian Securities
and Exchange Commission (CVM, acronym in Portuguese) and the São Paulo Stock Exchange (BOVESPA, acronym in Portuguese). This
information can be found in the Investor Relations section of our website (www.portoseguro.com.br) and is later e-mailed to the people
that registered to receive it. Our full financial statements are published every year in O Estado de São Paulo and the São Paulo State Public
Journal. Our quarterly financial statements, press releases, presentations, relevant facts, and notices to shareholders are available in the Investor
Relations section of our website (www.portoseguro.com.br). You can also find any other information about us on the websites of the Brazilian
Securities and Exchange Commission (www.cvm.gov.br) and the São Paulo Stock Exchange (www.bovespa.com.br).
Porto Seguro S.A.
42
2011 ANNUAL REPORT
Glossary
Brokers: the insurance brokers that are authorized to mediate the sale of insurance policies in Brazil.
DPVAT: bodily injury liability insurance for motor vehicles.
Earned Premiums: a portion of insurance premiums that matches the time elapsed for the policy coverage period.
Loss: an event that entitles the policyholder to compensation from the insurer.
Loss Ratio: a ratio obtained from dividing total retained losses by total earned premiums.
PGBL: a Brazil-specific traditional individual retirement account.
Policy: an insurance contract that establishes the rights and obligations of insurance companies and policyholders.
Porto Seguro: Porto Seguro Companhia de Seguros Gerais.
Porto Seguro Consórcios: Porto Seguro Administração de Consórcios Ltda.
Porto Seguro Proteção e Monitoramento: Porto Seguro Proteção e Monitoramento Ltda.
Porto Seguro Saúde: Porto Seguro – Seguro Saúde S.A.
Porto Seguro Uruguay: Porto Seguro – Seguros del Uruguay S.A.
Porto Seguro Vida: Porto Seguro Vida e Previdência S.A.
Portopar: Portopar Distribuidora de Títulos e Valores Mobiliários Ltda.
Portoseg: Portoseg S.A. – Crédito, Financiamento e Investimento.
Premium: consideration paid by the policyholder to the insurer.
VGBL: a Brazil-specific Roth individual retirement account. This product is intended for redeemable savings.
Written Premiums: total written premiums during a given period.
Porto Seguro S.A.
43
2011 ANNUAL REPORT
CREDITS
General Coordination, Writing, Editing, and Proofreading
BRIC Integrated Corporate Communications
Graphic Design and Layout
MZ Group
Porto Seguro S.A.
44
2011 ANNUAL REPORT

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