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Brasil Insurance Reports Results

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					                             Brasil Insurance Reports 3Q11 Results
Investor Relations
                             Rio de Janeiro, November 14th, 2011 – Brasil Insurance
Luis Eduardo Fischman        Participações e Administração S.A. (Bovespa: BRIN3) – one of the
                             largest and most diversified insurance brokers in Brazil, controller of 34
Investor Relations Officer
(55 21) 3433-5060            insurance brokers with strong presence in key markets in the country –
ri@brasilinsurance.com.br    announces today its results for the 3rd quarter of 2011.

                             Our consolidated financial statements were prepared in accordance with
3Q11 Earnings Conference     accounting standards generally accepted in Brazil, based on Brazilian
Call                         Corporate Law, IFRS and CVM regulation and fully audited by
Tuesday, November 15, 2011   Ernst&Young.
Portuguese
14:00 pm (BR); 11:00 am      3Q11 HIGHLIGHTS
(US-EST)
                                 Pro forma net income of R$ 37.9 million and EBITDA of R$ 30.6
Phone: (55 11) 3127-4999
                                  million, including the newly acquired broker and excluding R$1.4
Password: Brasil Insurance
                                  million in non cash expenses related to stock option plan in
                                  3Q2011
English
12:00 pm (BR); 9:00 a.m.
                                 Pro forma net income of R$91.7 million and EBITDA of R$85.7
(US-EST)
                                  million in the first nine months of 2011 including the newly acquired
Phone:
                                  brokers and R$4.6 million in non cash expenses related to stock
+1(877)317-6776 (US only)
                                  option plan in 9M11.
+1(412) 317-6776 (Other
countries)
                                 Pro forma net margin of 65.8% and EBITDA margin of 61.4 % in
Password: Brasil Insurance
                                  the first nine months of 2011.
Website
                                 Consolidated net income and EBITDA growth of 80.7% and 38.8%
www.brinsurance.com.br/ir
                                  respectively over the first nine months of 2010.
Address
                                 Normally, third quarter represents 28% of the full year and the first
Av. Das Américas, 500 -
                                  nine months represents 70%
Building 19 Room 301
Barra da Tijuca
                                 Average commission of 14.8%up from 14.4% in 2Q11
Rio de Janeiro - RJ
ZIP Code: 22640-904
                                 Commission from cross selling were 8.0% of total revenues, up
                                  from 5% in 2Q11

                                 Acquisition of Umbria Corretora for an estimated of R$16.5 million,
                                  elevating total investments in acquisition in 2011 to R$145 million
                                  in 7 acquired brokers.

                                 BTG Pactual will act as a market maker to foment the liquidity of its
                                  shares in the scope of BM&F Bovespa’s Novo Mercado.
                                                 Earnings Release


OUTLOOK
During the third quarter, the Brazilian insurance market continued its double digit growth. According to
SUSEP – which includes all but health insurance – premiums grew by 20.6% in the first seven months of
2011 in comparison to the same period in 2010. ANS database, which accounts for all health related
data, has not been released yet for 2011.


                                                       Premiums Issued
                                          100

                                           75
                             R$ Billion




                                           50

                                           25

                                            0
                                                2006   2007    2008      2009    2010   2011e

                                                        Other Segments    VGBL




As a consequence we continue to notice insurance penetration increasing in Brazil as a percentage of
GDP.




                                                                                                           2
                                         Earnings Release


MAIN OPERATIONAL INITIATIVES
Integration

On the last quarter, we commented on the integration initiatives we had been implementing. This quarter
in São Paulo, where we have the majority of our operations, we managed to reduce the office count from
12 to 9. This not only has an important positive impact on our cost structure but also facilitates brokers
interactions on a daily basis enhancing the cross-selling opportunities.

Cash Management

As part of its integration initiatives, the Company has elected Banco Itaú BBA to centralize our banking
services. By the end of September, all of our brokers had accounts in Itaú and 70% of the commissions
were received through these accounts. With this initiative, we manage accounts payable and receivable
and payroll at the Holding level.

In addition to that, the brokers’ excess cash position is managed by the Holding’s treasury and is kept on
Credit Deposits with SELIC-related returns.

Cross Selling

During the third quarter, we managed to expand the cross selling participation in our revenues from 5%
in the previous period to 8,0%. This initiative is very accretive since 90% of our clients only hold one or
two Brasil Insurance product.

This happened in part, due to the implementation of the operational hubs. With this structure, the brokers
can take advantage of a centralized negotiation and decision making process for specific insurance
needs and higher service levels thus dedicating more time to commercial activities.

On the commercial front, we have successfully tested the first campaign to foster the culture among our
sales representatives on the educational financial warranties product by an incentive plan attached to an
e-learning platform. This generated several new contracts and represents an important threshold for
future operations.

On that regard, we signed a contract to insure 780 thousand students in one of Brazil´s largest
universities against student default. We believe this university has great prospects to enlarge the student
base thus generating additional gains to the Company.

On the health segment, due to the cross selling, we grew our life portfolio in 55 thousand lives – 18
thousand with a large Brazilian retail company, 15 thousand with a major logistics company and 22
thousand with various other companies.

On the Affinity segment, we managed to cross sell extended and financial warranties, home, personal
accidents and funeral assistance policies, with retail stores and financial institutions. In those
opportunities, our brokers sold an excess of R$260 million in premiums for a five year contract period.




                                                                                                              3
                                                Earnings Release

Multicalculation Tool

This tool was developed specially for Brasil Insurance purposes in order save time and manpower on the
auto insurance quote process. Instead of having to fill different forms for each insurance carrier, the
commercial department now has an integrated system that quotes, today, on five different carriers at the
same time. On top of that, this tool grants us the opportunity to better understand the client’s needs and
offer the best product available in the market.

It is currently being implemented on the auto-specialized brokers and later will be available for all of our
34 subsidiaries.

OPERATIONAL HIGHLIGHTS
The average commission in the 3Q11 grew to 14.8% from 14.4%. As in the 2nd quarter, we had no
relevant change in the product mix.

                                                        Premiums
                                                                  15%         1%
                                                        6%
                                                  5%                          8%
                                                4%


                                                16%


                                                                        44%



                                Life   Health    Auto    Surety    Cargo      Affinity   P&C   Pension




THIRD QUARTER FINANCIAL SUMMARY
Pro forma Gross Revenue reached R$49,2 million in 3Q11 with roughly 8% coming from cross selling
within our subsidiaries, still evidencing much room for improvement in cross selling activities throughout
the company.

Pro forma EBITDA reached R$30.6 million representing an EBITDA margin of 67.2%

Pro forma Net Income reached R$37.9 million representing a Net Margin of 83.2%

Financial Revenues added R$9.7 million to our results generated by a cash position of R$287.5million.
The net proceeds balance of our 2010 IPO are fully allocated by the Holding Company in Certificate of
Deposits and Debentures issued by first-tier Brazilian banks at an average yield of 104.2% of CDI –
Selic rate with programmed liquidity. The subsidiaries’ cash, R$34.1 million, is allocated on Credit
Deposits that pay 104.5% of the Selic rate and is subject to a 30 day lock-up prior to redemption. The
average yield rate is 104.3% of CDI.



                                                                                                               4
                                           Earnings Release

Effective tax rate on net income over profit before taxes reached 22.3% in the 3rd. The Company
anticipates an effective tax rate on net income from continuing operations of 21.1% over Profit Before
Taxes for 2011.

On the third quarter, the Company accrued a significant sum related to deferred income and social
contribution taxes stemming from pre-operational expenses linked to our IPO. This benefits our income
statement on the quarter and will have an estimated positive impact on our effective tax rate until early
2016. This is a one-time impact amounting to R$8.7 million.



THIRD QUARTER FINANCIAL REVIEW
3Q11 Pro Forma Income Statement

                       PRO FORMA INCOME STATEMENT
                                                               3Q11       9M11
                       R$ thousand
                       Gross Revenues                          49.186    150.488
                        Deductions                             -3.551    -11.013
                       Net Revenue                             45.635    139.474
                        Cost of Services                       -4.337    -14.057
                       Gross Profit                            41.298    125.417
                        Operating Expenses                    -10.864    -40.339
                         Salaries and Benefits                -11.550    -32.654
                         Administrative                        -6.398    -19.881
                         Sales and Marketing                    -937      -2.786
                         Depreciation/ Amortization             -218       -593
                         Other Operational Revenues            8.238     15.576
                       Operating Profit                        30.434    85.078
                       EBITDA                                  30.651    85.671
                        EBITDA Margin                          67,2%     61,4%
                        Financial Result                       9.450     27.196
                       EBT                                     39.883    112.274
                        Income Tax & Social Contribution        -436     -16.567
                        Minority Interest                      -1.467     -3.995
                       Net Income                              37.980    91.712
                        Net Margin                             83,2%     65,8%




                                                                                                            5
                                        Earnings Release

Share Count




                  Shares outstanding after the IPO                      88,940,000
                  Issued due to acquisitions                             1,210,130
                  Vested stock options                                    398,500
                  Total Shares Outstanding – Sep/11                     90,549,130




CAPITAL MARKETS
The Company’s stock is listed on Bovespa’s Novo Mercado, the highest corporate governance segment
in the Brazilian market, under the ticker BRIN3. On the third quarter, the share price has decreased 9.7%
versus a 16.1% drop of the Ibovespa.




Average daily trading volume on 3Q11 stood at R$4.4 million. Our total shareholder base has expanded
to 370 from 340 in the second quarter. Our individuals’ base has also expanded from 5 individuals on the
first quarter to 30.




                                                                                                            6
                                         Earnings Release


SUBSEQUENT EVENTS
On November 7th, the Company acquired 99.97% of Umbria Corretora for an estimated total price of R$
16.5 million. Umbria, headquartered in São Paulo, is a firm that operates mainly in the health, life and
auto segments. The broker sold approximately R$50 million in insurance premiums in 2010.

The acquisition abovementioned was made based on a R$7 million upfront cash and BRIN3 stock
payment. In addition to that, the selling partners are subject to a four year earn out structure that varies
according to pre-established net income levels.

A special shareholders’ meeting to discuss this acquisition will be called in December.

Altogether in 2011, Brasil Insurance acquired 7 insurance brokers that accounted for a total investment,
including the expected earn outs installments estimate, of R$ 145 million.

On November 10th, the Company announced that BTG Pactual will act as a market maker to foment the
liquidity of its shares in the scope of BM&F Bovespa’s Novo Mercado.

The agreement entered between the parties will be valid for 12 months, being automatically renewed for
equal period if there is no manifestation by either party to the contrary.

ABOUT BRASIL INSURANCE
Brasil Insurance (Bovespa:BRIN3) is one of the leaders of insurance brokerage in Brasil. Through its
more than 30 offices in the country, the Company delivers substantial value to our clients via innovative
and effective risk management and workforce productivity solutions. It currently comprises 34 brokerage
companies covering health, life, auto, P&C and affinity groups therefore providing for virtually 100% of
our client´s insurance necessities.

We believe to be poised to achieve the top brokerage position in the short term due to our full portfolio of
products and technical expertise of our brokerage team.




                                                                                                               7
                            Earnings Release


CONFERENCE CALL DETAILS



               English                                  Portuguese

       November 15th, 2011                         November 15th, 2011

      12.00 pm (Brasilia Time)                     2.00 pm (Brasilia Time)

  Phone: +1(877) 317-6776 (US Only)              Phone: +55(11) 3127-4999

    +1(412) 317-6776 (Non-US)                      Code: Brasil Insurance

      Code: Brasil Insurance




    Visit www.brinsurance.com.br/ir for more information on Brasil Insurance.




                                                                                8
                            Earnings Release


APPENDIX
I – Balance Sheet

II – Income Statement

III – Cash Flow Statement




                                               9
                                                         Earnings Release


                  Appendix I – Balance Sheet
                                                September 30th, 2011                                               September 30th, 2011
                                               Holding      Consolidated                                         Holding       Consolidated
 Assets                                                                    Liabilities

 Current Assets                                                            Current Liabilities
 Cash and Cash Equivalents                       184           6.035        Loans and Financing                        -                 83
 Financial Securities                          287.557        321.677       Suppliers                                      38           834
 Accounts Receivable                              0            23.119       Related Parties                            -                475
 Acc. Receivable - Covert Part. Agreements      4.201          10.081       Payroll and Social Charges                 216            3.671
 Tax Receivable                                 9.800          10.223       Income Tax and Social Contribution       4.402           14.056
 Other                                           184           5.526        Taxes Payable                              193            5.445
                                               301.926        376.661       Proposed Dividends                           24             496
                                                                            Clients                                    -                639
 Non Current Assets                                                         Acc. Payable from Acquisitions          18.731           18.731
 Long Term Receivables                            0              2          Other Current Liabilities                  -              2.154
 Accounts Receivable                              0            15.361                                               23.605           46.582
 Financial Assets                                 0            3.077
 Accounts Receivable                            5.981          5.981       Non current liabilities
 Diferred Income Tax and Social Contribution     261            261         Loans and Financing                        -                  23
 Related Parties                                  0            1.259        Suppliers                                  -                131
 Other financial Assets                                                     Related Parties                            300              617
                                                                            Income Tax and Social Contribution         -                -
 Investments                                   201.507          205         Taxes Payable                              -              2.124
 Fixed Assets                                    255           2.574        Provisions for Contingencies               -                482
 Intangibles                                     195          132.027       Acc. Payable from Acquisitions          43.759           43.759
                                               208.199        160.747       Other                                      115              557
                                                                                                                    44.174           47.693
Total Assets                                   510.124        537.408
                                                                           Equity
                                                                            Capital                                340.307          340.307
                                                                            Capital Reserve                         10.518           10.518
                                                                            Stocks in Treasury                           (5)             (5)
                                                                            Accumulated Profit                       9.966            9.966
                                                                            Net Income                              81.560           81.560
                                                                                                                   442.345          442.345
                                                                            Non-Controlling Interest                   -                788
                                                                                                                   442.345          443.133

                                                                           Total Liabilities and Equity            510.124          537.408




                                                                                                                                      10
                          Earnings Release


Appendix II – Income Statement




                                             11
                          Earnings Release


Appendix III – Cash Flow Statement




                                             12

				
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