Insurance, Reinsurance And Pension

This memorandum aims at informing about Provisional Measure ("Medida Provisória") No 564, dated April 3, 2012, which, among other provisions, authorizes the Federal Government to participate in funds dedicated to guaranteeing export transactions or infrastructure projects as well as to create the Agência Brasileira Gestora de Fundos e Garantias S.A. – ABGF.

This Provisional Measure authorizes the Federal Government to participate, as a quotaholder and up to the amount of R$ 14.000.000.000,00 (fourteen billion reais), in funds which purpose is to guarantee:

1. - commercial risks in export transaction with a term exceeding 2 years;
2. - political and extraordinary risks in any export transaction; and