SAO PAULO, May 17 /PRNewswire-FirstCall/ -- Sul America S.A. (BM&FBovespa: SULA11) announces its first quarter 2010 results. Net income during the period was of R$109.6 million, an increase of 10.5% compared to the first quarter 2009.
Total revenue from insurance premiums was of $R2.0 billion, a 14.3% growth, which excludes the consolidation of the Brasilveiculos subsidiary. A significant surge in the growth of health insurance and auto insurance portfolios was observed in this period.
The annualized return on equity reached 17.0% during the quarter and the company ended the period with a total of R$11 billion in assets. Return on investment portfolio of R$167.0 million, corresponding to an average yield of 132.8% of the CDI rate.
The health insurance portfolio, with premiums of R$1.3 billion, accounts for 65.0% of the Company's revenue and grew 19.4% during the quarter. The sector of group health insurance led the way with a growth in revenue of 19%. The company's health insurance portfolio for small and medium businesses also registered excellent performance with growth of 33.1% between compared quarters, as did dental care insurance, where revenue grew 61.3% compared to the first quarter 2009.
The revenue in premiums for the auto insurance sector grew 22.3% during the first quarter, exceeding the 17.9% growth registered by the market over the same period, according to data supplied by SUSEP. In general, the auto insurance market has registered significant growth, reflecting a positive reaction to the government's stimulus measures, with the sale of new vehicles supporting the 17.9% growth rate in the quarter, according to ANFAVEA.
The insurance company also experienced a 12.5% growth in the life insurance portfolio, motivated by VGBL (Vida Gerador de Beneficios Livres - Life Generator of Free Benefits) products, with a 35.6% increase in premiums.
During the first quarter, the company's loss ration was 71.8%, an improvement of 1.7% compared to the same period in 2009, while the combined ratio reached 98.5%.
SulAmerica - Media Relations Office Solange Guimaraes / Daniela Campos Phone: 55 11 3779.7614/ 5045 E-mail: imprensa@sulamerica.com.br
SulAmerica
CONTACT: Solange Guimaraes, +011-55-11-3779-7614, or Daniela Campos,
+011-55-11-3779-5045, both of SulAmerica Media Relations,
imprensa@sulamerica.com.br
