OREANDA-NEWS. The 4th quarter was positive to the company, demonstrating the effects of the measures taken during the year. The competitive scenario in Auto insurance has been more rational and there was also a decrease in the theft frequency. We have focused on margins and still managed to g row in all business lines. ROAE reached 24.2% and net earnings were 26% higher (4Q12 vs 4Q11). Written premiums and total revenues were 18% higher in 4Q12, highlighting the Azul auto product, our price brand which grew by 43% with a reduction of nearly 9 p.p. in the loss ratio. For the year ROAE reached 17.3% and total revenues reached BRL 11.5 billion showing a growth of 14%.

The underwriti ng performance improved both in the quarter and the year. The combined ratio reached 96.8% in 4Q12 and 99.0% in 2012, mainly reflecti ng price adjustments and administrative expenses reduction. Investments in processes optimization, new systems implementation and change in our management system and focus on cost reduction, allowed an improvement in the G&A by approximately 1 percentage point. These initiatives are part of our goal to gain sustainable productivity without affecting the level of service to customers and insurance brokers.

Financial performance also contributed to improve our profitability and even facing lower interest rates, we have reached nominal returns aligned with our strategy. The financial result was 1% higher in the quarter (vs. 4Q11), with a significant profitability of 167% of CDI (4Q12 x 4Q11). The Financial Result for the year amounted to BRL 946 million, an increase of 9% in comparison to prior year, achieving a performance of 159% of CDI. In 2012 (excluding pension) our investment strategy contributed positively with BRL 154 million above CDI, with a return of 11.2% (133% CDI).

In non insurance business revenues grew 38% in 4Q12, primarily driven by the credit operation (Credit Card and Financing). During the year, other business represented 15% of net earnings, an increase of 3 p.p. in relation to 2011, emphasizing our business development model in line with insurance operations.

Additionally, in 2012 we have increased our operating structure, building new automotive centers, claims service centers and medical clinics. We have also launched new commercial branches, aligned to the company objectives, aiming to expand along the country.

Finally, our thanks to all employees, service providers and brokers, who have worked with dedication and commitment throughout the year. We will maintain our strategy of growth with profitability, seeking to leverage our brand in several segments and channels where we operate.