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RIF: J-30083118-3

MIS

SIO

NBanesco Seguros, C.A., registered with the VenezuelanSuperintendency of Insurance Companies under N° 109,was established in 1993 with the main purpose ofoffering high quality products and services to meet theneeds of the market.

The entrepreneurial approach guiding our team reflectsthe soundness, confidence, support, security harmoniouslyinterwoven, identifying itself as one great family and asolid working team oriented towards the growth andconsolidation of a common project.

Banesco Seguros' presence at a national level allows itto opportunely manage, maintain and expand businessrelations using strategies based on needs existing in theenvironment.

MISSIONTo be an Insurance Company known for the excellentquality of its services, oriented toward satisfying theneeds of the clients of the Organization and those ofits Intermediaries.

MISSION

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BOARD OF DIRECTORS • ORGANIZATIONAL STRUCTUREBANESCO SEGUROS

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Board of DirectorsChairman of the BoardFernando Crespo Suñer

Executive ChairmanPedro Luis Garmendia

DirectorsJuan Carlos Escotet

Luis Xavier LujánSalvador Cores

María Josefina FernándezNelson Becerra

Adil Coury Emmanuelli

Executive PersonnelExecutive Chairman

Pedro Luis Garmendia

Executive Vice-PresidentAdil Coury Emmanuelli

Human CapitalBeatriz Pérez

General ComptrollerMary Cruz Campos

Internal AuditorAlexis Blanco

Legal DepartmentMarco Ortega

Organizational StructureNational Sales Management William CruzCrosses Sales Carmery NarváezNetwork Channels Yrmgar AriasExclusive Agents Mario VerrocchiInsurance Brokerage Gloria VelásquezSpecial Accounts Jaime RochaMarketing Juliana GómezBranches Countryside José Guillermo LeónSuscription Rafael CasiqueEquity Julio MarvalHealth and Persons Giuseppe OcchinoAutomobiles Eleanor MartínezSuscription Control Jezmín LezamaService National Management Rosa RodríguezHealth Services Iris QuirozCasualty and Property Claims Rosa NúñezAutomobile Services María VieitezActuarial Itziar BarandiaranAdministration Yaneth MartesPlanning Cristina BlassiTechnology of the Informationand Processes Carlos RivasSpecialized Service Center María J. MartínezAccounting Ana PintoSecurities Elizabeth ZambranoReinsurances Ana Rosa Viera

Branches CaracasLos Dos Caminos Alirio VallesSan Ignacio Edgar Farías

CountrysideAraure Rosa MirasBarquisimeto Roberto NorbiatoBarinas Wilfredo Campos Maracaibo Angel FerrerMaracay Aliber González Pampatar Pedro Luis TineoBarcelona Luis SilvaPuerto Ordaz Lino ChongPunto Fijo Yelitza Rivero San Cristóbal Claudia CárdenasValencia Gustavo Márquez

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2008 was a great year for our Institution. We had an81.5% capital increase while the sector had a 44.3%average increase, and a 42.5% return on equity, whichis considerably higher than the 33.4% average withinthe industry. Likewise, Net Premium Collected increasedby 78% in nominal terms over last year, thus ratifyingthe consolidation of the Company, which ranked sixthin the insurance market. We are still the leading companyin the Property and Life insurance industry. The resultsof the year certainly showed that our operation enabledthe further strengthening of our Company, evidencedby records of significant improvement in indicatorsrelated to equity stability.

As to our national network, during 2008, majorinvestments in infrastructure were made to improve ourcustomer service provision. We opened one branch officein Araure, Portuguesa State, acquired new premises forBarcelona branch office, extended the premises ofPampatar branch office, remodeled Valencia branchoffice, and began remodeling Maracaibo andBarquisimeto branch offices, thus consolidating ourpresence nationwide even more. As to our new branchin Caracas, it may be fully operative in mid 2009, andwill offer more convenience to both employees andagents and insured.

Additionally, we extended our services through theSpecialized Service Center (Centro Especializado deAtención - CEA) in order to include claim reporting andcar inspection. In 2009, we will include other services,the projects of which were not ready as of 2008 close.Our goal is that CEA acts like a virtual office for ourinsured, agents, and business associates.

We incorporated the extranet service for inquiries, whichallow us to provide more efficient services to agentsand insured. Likewise, we made major investments intechnology to strengthen the system, and weimplemented solutions to procedures to improve Vehicleand Health related services provided to the insured.In order to boost the skills of our professional personnel,we implemented a training program, which was organizedas a Specialization Course of Universidad Metropolitana.This is a continuous program which combines insurancerelated knowledge with management and human skills,aimed at branch offices' personnel nationwide.

In addition, we implemented the pilot program “Justoy Pronto” (Fair & Soon) in the city of Caracas to offerour insured the possibility to directly choose the moreconvenient repair shop and promptly receive a fairindemnity.

Lastly, but just as important, we began doing businessesin Panama. This is the first country where we expandedour businesses abroad in order to provide the servicesof an insurance company at both personal and generallevel within the Panamanian market.

In 2009, we ratify our commitment to our insured,agents, business associates, and employees. Therefore,our strategic plan is focused on consolidating our positionwithin the market and providing high quality services.

Thank you for your trust.

Pedro Luis GarmendiaExecutive Chairman

TO OUR CLIENTS, SHAREHOLDERS AND RELATED

ECONOMY 2008

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The sectors with significant growth were communications(18.0%), community, social, and personal services (9.2%),Government services (5.1%), and trade and repairservices (4.7%), while mining decreased by 5.6%.

The private manufacturing industry increased by 1.3%with substantial outcome in paper manufacturing(6.2%), metal manufactured products (2.7%), andfood industry (4.1%).

Balance of PaymentsThe balance of payments closed 2008 with US$ 9,275million, as a result of a US$ 39,202 million surplus inthe checking account and a US$ 26,180 million deficitin the financial account.

The checking account showed a 96.2% increase over2007, as oil export revenues increased as a result of theUS$ 87,443 million increase of the value thereof, uponthe increase of the Venezuelan oil basket prices (36.1%)and the export volume (2.5%).

The non-oil related external sales experienced 7.7%decrease over last year to US$ 6,099 million (lessinvoicing of the main export products in common metalsand motor vehicles).

Import of goods increased by 5.8% due to the dynamiceconomic activity and higher requirements of intermediateinputs and final goods, which resulted in a greaterdemand of foreign products.

The deficit in the financial account derived from the netflows related to other investment and direct investmentaccounts. Other investment account has greater incidencewith a net assets increase of US$ 27,574 million, whichshows the increase in public assets in oil deposits andloans granted to non-related foreign customers, as wellas the increase of the private sector's deposits due tothe complementary foreign currency offer (dealing ofdebt securities in foreign currency).

ECONOMY DURING 2008Gross Domestic Product (GDP)During 2008, the gross domestic product of theVenezuelan economy maintained a steady increase,which extends to five consecutive years after showinga 4.8% actual variance as per preliminary aspects ofthe Central Bank of Venezuela (BCV).

Although positive, these results imply a slowdown over2007, when the year-on-year variance was 8.4%. Theproduct rate of growth slowdown would be related tothe rate of increase of the aggregate demand, whichhas been the main economy's driving force since 2004.

In fact, the Venezuelan Government took economicpolicy measures aimed to reduce the consumption rateof growth in order to promote savings, such as interestrate increase of credit card transactions, and importrestrictions for certain goods deemed luxury articles byreducing the foreign currency allocated for the purposehereof. This caused a decrease of the final privateconsumption rate of growth from 18.7% in 2007 to7.1% in 2008.

Likewise, there was a 2.4% decrease of gross fixedcapital formation during 2008, while 2007 experienceda 25.4% increase, which reveals a significant contractionof investments.

As a result of the joint performance of these items, theaggregate demand increased by 5.5% in 2008, whichimplies a significant slowdown of the rate of growthover 2007, with a 18.3% increase.

From the institutional point of view, the public sectorrecorded a 16.4% annual variance, which is related tothe economic activity restructuring due to the companynationalization policy by the Venezuelan Government.

By braking down the analysis into activities, theeconomic growth in 2008 was mainly driven by the5.1% increase of non-oil activities over the 3.2%increase of the oil activity.

GROSS DOMESTIC PRODUCT (GDP)BALANCE OF PAYMENTS

ECONOMY 2008

ECONOMY 2008

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The direct investment had a US$ 1,041 million deficitrelated to trade credits and the public oil sector'sprofit reinvestment in its foreign affiliates. On theother hand, there was an increase in liabilities offoreign investment in the country due to dividendspayable to private sector companies and their relatedcompanies, and new investments and profitreinvestment in national financial institutions andprivate sector companies.

Lastly, portfolio investment had a US$ 2,435 millionsurplus due to the reduction of portfolio instrumentsby national private financial institutions, which waspartly compensated by the increase in public assetsin marketable securities incorporated to the NationalTreasury's investment portfolios.

The country's net international investment positionclosed with US$ 137,331 million, thus showing anincrease over last year (US$ 86,851 million), due tothe US$ 214,895 million increase of foreign assetsand the US$ 77,564 million decrease in foreignliabilities.

UnemploymentAs of December 2008, the unemployment rate was6.1% (782,917 unemployed), based on aneconomically active population of 12,824,626inhabitants. This implies a .1-point decrease over lastyear (6.2%), as a result of the general economicactivity growth and the continuity of the socialprograms generated by the National Government.

The unemployment rate decrease has progressivelyslowed down since 2004, which leads toward theconclusion that the economy is closer to its naturalunemployment rate. This level of unemployment isconsidered to be a regular part of the functioning ofthe economy, and it relates to the concept of aproduction which changes the rate of growth of thepotential GDP in the long term. The informal economyrecorded a 44.1% during 2008.

UNEMPLOYMENT

InflationThe National Consumer Price Index (CPI) recorded a30.9% accumulated rate of growth during 2008.This performance is mainly related to offer-demandimbalances. The core inflation annual variance was31.7%.

Based on the preliminary figures of the BCV, during2008, there was a 6.3% increase in consumption,while the internal offer increased by 4.9%, whichled to a rising inflation throughout the period.

Although the National Government and the BCVimplemented a series of fiscal and monetary measures,such as exchange rate nominal anchor, pricesadministered for certain items, reduction of VAT rate,and elimination of Financial Transactions Tax (FTT),limited monetary policy and direct subsidy for someagricultural items, they proved to be insufficient forthe performance of the general price level.

Despite the inflation performance and theimplementation of price controls, as to supply, therehas been a steady improvement in merchandiseavailability in common market places. In December,

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the product shortage in the market was 11.0% -thelowest in the last 24 months.

On the other hand, the index of product diversity inthe market progressively improved, thus closing theyear at 154.2, in comparison with the 93.8 indexrecorded in 2008.

Monetary PolicyDuring 2008, the monetary policy was characterized bymaintaining the restrictive bias existing since 2007. Themonetary aggregates were mainly used as a mechanismto decrease the existing rising inflation in the Venezuelaneconomy.

The BCV mainly leveraged in the modification and increaseof legal reserve regulations. This was used as a monetarypolicy instrument in order to moderate the rate of growthof monetary aggregates. Thus, the costs of implementinga rigorous monetary policy of the BCV are transferred tothe national financial system through the non-productiveasset increase, since a part of each institution's customers'deposits must be deposited in the issuing institute withno remuneration whatsoever for such funds1.

ECONOMY 2008INFLATION

Likewise, upon implementing this measure, the creationof secondary money decreases, which is evident in theprogressive decrease of the monetary multiplier uponenforcement thereof, and of the money supply.

The legal reserve increase caused the implementationof other measures like the increase of remuneration ofsavings and the use of absorption transactions.

Since May 1, 2008, the minimum annual interest rateto be paid by financial institutions for customers' depositsfrom saving accounts and cash asset accounts will be15%, and minimum 17% for customers' deposits fromterm deposits and interests. Likewise, the interest ratefor absorption transactions of the central bank ofVenezuela will be 13% at 28 days and 14% at 56 days.

The interest rate payable to the BCV for injectiontransactions will be 23% for 14-day transactions and24% for 28-day transactions, with the inclusion of a22% interest rate for a 7-day term. On the other hand,a 33.5% of interest rate was established to be chargedby the BCV in its credit assistance transactions throughthe concepts of discount, rediscount, advanced paymentand repo.

Therefore, the money supply-in terms of monetaryaggregate M2-is Bs.F. 194,432 million, which entails a26.89% increased over the balance recorded in 2007.

This caused the reduction of the supply rate of growthfor the second consecutive year, after having increasedby 27.80% in 2007 and 69.35% in 2006.

The monetary base recorded a 30.55% increase at 2008close for a total balance of Bs.F. 83,787 million. Thisincrease was related to partial monetization of resourcesderived from the increase of the national oil basket price.

ECONOMY 2008

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2008 Insurance MarketThe financial system, like the Venezuelan insuranceindustry, has shown an upward trend during the lastyears, thus meeting the needs of people from allwalks of life by providing new products and servicesof greater relevance for the general population.

The efforts made by insurance companies have obviouslyachieved highly favorable results. However, some factorshave affected efficiency thereof, for example, the carsegment, which has been affected mainly due to shortageof parts and specialized repair shops.

In addition, there is an imbalance between supplyand demand in the health industry mainly caused bythe difference between cost of services and feesauthorized to the industry.

The challenges of the industry are still focused ondiversifying the product supply and improving servicequality through constant upgrading of the

2008 INSURANCE MARKET

1 Under Resolution 06-09-02 issued by the BCV (July 2007), the legal

reserve increased from 15% to 16% of the total amount of the ReserveBase Net Obligations and by 17% in October. In July, the reserve forceded investments was 13.75%, and gradually increased by .25 pointsup to 17%. The marginal reserve remained at 30% for those institutionswith Net Obligations plus Ceded Investments of over Bs. 90 billion.

technological platform, which enables higherresponsiveness.

The new strategies implemented by the insurance industrygenerated during 2008 a nominal growth of 45.2% intotal net premium collected, thus reaching the amountof Bs.F. 22,387.1 million, equal to US$ 10,412 million.

In real terms, after deducting the annual variance ofthe Consumer Price Index (CPI) for the period underanalysis (30.9%), accumulated net premium collectedduring the last twelve months showed a 14.3%increase, thus maintaining the progressive growth ofthe industry resulting from the greatest economicdynamism, which was mostly caused by the positiveprogress of the public sector during the entire period.

The analysis by products evidenced 47.6% of writtenpremiums are related to personal insurance, while52.1% corresponded to general insurance and 0.3%to reassurance transactions.

It is evident that during the last twelve months, therate of increase of general premiums (46.0%) wasslightly higher than that of personal premiums(44.2%), which were boosted by the increase in thetake-out of car insurance policies.

The increase in the personal segment was mainlycaused by regular take-out of group insurance policiesby Public Administration bodies since 2005.Claim ratio indicators showed a sustained increase

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2008 INSURANCE MARKET

ECONOMY 2008

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

Net Premium Collected (MM BsF) Growth (%)

24.00022.00020.00018.00016.00014.00012.00010.0008.0006.0004.0002.000

0

100%90%80%70%60%50%40%30%20%10%0%

Source: Sudeseg

caused by mass inflation in the Venezuelan economy.During 2008, claims paid-net premium collected ratioincreased by 4.7 points over 2007, i.e. 50.4% atperiod close.

This behavior is the result of the highest rate ofincrease experienced by claims paid (58.8%) overnet premium collected (45.2%).

Likewise, expenses derived from administrative andacquisition costs have increased in terms of net premiumcollected, however, it is lower than the increase in claims.During 2008, administrative costs-net premium collectedratio increased by 1.0 points (14.3%). On the otherhand, commission and acquisition costs-net premiumcharge ratio stood at 12.3%, which represents a small.4 point increase over last year.

As a result of the increase in claims, as well as inadministrative and acquisition costs, year-end results-net premium collected ratio decreased by 1.3 pointsduring the last twelve months and closed 2008 at4.7%. On the other hand, the indicator resulting fromreturn on equity ratio was 2.5% in real terms.

The 20 first companies ranked concentrated 86.7% oftotal net premium collected in this period, while theremainder of 13.3% was distributed among the othercompanies within this market. As to the net result, weobserved that the concentration increased, since thefirst 20 companies generate over 96.0% thereof.

ECONOMY 2008

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2008 INSURANCE MARKET

Commission and Acquisition Costsvs. Net Premium Collected

Administrative Costs vs.Net Premium Collected

18%

17%

16%

15%

14%

13%

12%

11%

10%2002 2003 2004 2005 2006 2007 2008

Source: Sudeseg

15.9%15.8%

13.5%

11.7%12.1%

12.4%

13.3%

14.3%

12.2%12.8%

13.4%

12.1% 11.9%

12.3%

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BANESCOSEGUROS

BANESCO SEGUROSWith a sound track record within the Venezuelaninsurance market, Banesco Seguros has positioneditself among the most important entities, which wasevidenced by the figures recorded during the lastyears, and ranked sixth in the insurance market at2008 close.

The company's financial results evidenced anoutstanding management during 2008, with totalproduction of net premium collected of Bs.F. 1,182.9million, equal to a nominal increase of 78.2%, thusexceeding total increase in the entire market.Where deducting the effects for inflation, theInstitution recorded an actual increase of net premiumcollected of 47.3%, thus maintaining the distinctiveprogressive growth Banesco Seguros has had sinceit was established in 1993.

The expansion of the Institution entailed a highermarket share (from 4.3% in 2007 to 5.3% at 2008close) in net premium collected, which ratified theprogressive growth it has been experiencing since2001, where it concentrated only 1.0% of netpremium collected in the market. Since then, theshare has consistently increased.

The analysis by products evidenced that 40.9% ofwritten premiums is related to issuance of personalinsurance, while 59.1% corresponded to generalinsurance.

The Institution evidenced a significant growth inpersonal insurance, upon recording a total netpremium collected of Bs.F. 483.7 million, i.e. a 190.6%increase during 2008. On the other hand, incomederived from general premiums amounted to Bs.F.699.1 million, equal to a 40.6% increase in the sameperiod.

As per 2008 balance sheet, total assets amountedto Bs.F. 517.0 million, i.e. a 23.5% increase over2007, where total assets amounted to Bs.F. 418.5million.

12 A N N U A L R E P O R T 2 0 0 8

On the other hand, total liabilities amounted to Bs.F.406.6 million, i.e. a 13.7% increase over the previousyear. Technical reserves reached Bs.F. 182.4 million.

We observed a sustained growth of the claim indicator,thus following the market trend. In 2008, this indicatorof incurred claim-premium earned ratio showed a 7.7point increase over the previous year, and closed theyear at 39.6%.

On the other hand, administrative cost-net premiumcollected ratio was at 8.3%, i.e. a .6 point increaseover 2007. Acquisition and commission cost-netpremium collected ratio was at 6.4%, i.e. a .2 pointdecrease in the same period.

Taking the evolution of premiums, claims, andadministrative and acquisition costs as a whole, netincome- net premium collected ratio increased by .8points during the last twelve months, and closed2008 at 4.0%.

The reserve coverage rate reached an ideal level(1.56%), which exceeded the market average (1.31%).

On the whole, the positive performance of theInstitution is related to the increase of its marketshare, the diversification of its product portfolio, andthe rationalization process of its cost structure, whichallowed for a profitability increase during 2008,despite of the downward trend observed in the market.

Thus, the profitability of Banesco Seguros, measuredin terms of liabilities, increased by 42.5%, thusexceeding 2008 accumulated inflation rate.

BANESCOSEGUROS

BANESCO VIDA INTEGRAL

BANESCO SALUD INTEGRAL

STATUTORY AUDITOR'S REPORT

Banesco Seguros

TO SHAREHOLDERS AND THE BOARD OF DIRECTORSOF BANESCO SEGUROS, C.A

In my capacity of Statutory Auditor of Banesco Seguros,C.A., and pursuant to the provisions of Articles 287,309 and 311 of the Code of Commerce, I hereby informyou that I have audited your balance sheet as ofDecember 31, 2008, and the related statement ofoperations, changes in stockholders' equity, and cashflows for the year then ended, in historical amounts.The accompanying financial statements and theircorresponding notes are the responsibility of theCompany's management. My responsibility is to expressan opinion on these financial statements based on myaudit.

I conducted my audit based on the scope I deemednecessary under the circumstances, which wassignificantly less comprehensive than that of an auditconducted under generally accepted auditing standards,which aims at expressing an opinion on the financialstatements taken as a whole. Therefore, it is worthmentioning that my audit, as well as any opinions onthe financial position of Banesco Seguros, C.A. as ofDecember 31, 2008, is mostly based on the independentauditors' report of the Company, dated February 16,2009, which shall be made part of my report.

The Company prepares its financial statements inconformity with the accounting principles and standardsestablished by the Superintendency of InsuranceCompanies of the Ministry of Finance, pursuant to theVenezuelan Law on Insurance and ReinsuranceCompanies, which differ in certain aspects fromaccounting principles generally accepted in Venezuela,as explained in Note 2 to the financial statements.

Caracas, February 16, 2009

14 A N N U A L R E P O R T 2 0 0 8

Therefore, the accompanying financial statements wereprepared in order to comply with accounting standardsand practices established by such Entity, and not to bepresented in conformity with accounting principlesgenerally accepted in Venezuela.

Based on the opinion of the Company's independentauditors, the aforementioned financial statements presentfairly, in all material respects, the financial position ofBanesco Seguros, C.A. as of December 31, 2008, changesin stockholders' equity, and cash flows for the year thenended, in historical amounts, in conformity withaccounting standards and practices established by theVenezuelan Superintendency of Insurance Companies.Therefore, I recommend approval thereof.

The audit conducted by independent auditors wasintended to express an opinion on the basic financialstatements of Banesco Seguros, C.A., taken as a whole.The supplementary financial information included inAttachments I to IV, regarding solvency margin estimatedas of December 31, 2008, is presented for additionalanalysis and is not required for basic financial statements.The financial information for the year ended December31, 2008, has been subject to the same auditingprocedures applied to the basic financial statements ofthe year then ended, and is presented fairly, in conformitywith standards established by the VenezuelanSuperintendency of Insurance Companies, ResolutionNº 1.723 of November 17, 2000.

Gordy S. Palmero LujánMain Auditor

CPC Nº 7202 • SIS Nº 148

REINSURERS

INTERNATIONALMunchener Ruckversicherungs-Gesellschaft (Germany)

Swiss Re (Switzerland)

Mapfre Re Compañía de Reaseguro, S.A. (Spain)

Hannover Ruckversicherungs AG (Germany)

Scor Global P&C (France)

QBE Reinsurance (Europe) Limited (Ireland, Bermuda)

Ace Property & Casualty Insurance Company (USA)

Reaseguradora Patria SAP (Mexico)

QBE del Istmo Compañía de Reaseguros, Inc. (Panama)

NATIONALReaseguradora Delta

Provincial de Reaseguro, C.A.

RIV Reaseguradora Internacional de Venezuela

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16 A N N U A L R E P O R T 2 0 0 8

Balance SheetAS OF DECEMBER 31, 2008STATED IN VEF

BANESCO SEGUROS, C.A.Subscribed Stock: Bs. 49,750,000.00Paid in Capital: Bs. 49,750,000.00Registered in the Finance Ministry under Number 109Caracas / Venezuela RIF:J-30083118-3

Investment Suitable for Representing the Technical ReservesCashSecurity investment in public entitiesMortgage LoansDwelling PropertyLess: Accumulated DepreciationDeposits in GuaranteeFor Insurance TransactionsFor Trust Fund TransactionsInvestments Unsuitable for Representing the Technical ReservesStock Investment in Private CompaniesForeign InvestmentsProperty and Investments for Claim RecoveriesDeposits in Other InstitutionsReinsurance AccountsChecking Accounts with ReinsurersChecking Accounts with Reinsurance IntermediariesDepreciable and Amortizable AssetsFurnitureLess: Reserve for DepreciationOffice EquipmentLess: Reserve for DepreciationComputer EquipmentLess: Reserve for DepreciationVehicleLess: Reserve for DepreciationSundry AccountsAccounts ReceivableAdvanced on CommissionsCoinsurance AccountsBenefits ReceivableTransitory AssetsOther Deferred ChargesOther AssetsDeposit for Service GuaranteesTransactions in Transit

T O T A L A S S E T SMemorandum Accounts

Premiums ReceivableTrust Fund AssetsFunds and Contracts Administered

TOTAL MEMORANDUM ACCOUNTS

82,525,000.00 (3,584,539.21)

4,313,045.26 (1,401,787.53)

564,120.32 (231,509.29) 5,337,551.54

(1,140,500.52) 129,893.70 (81,419.65)

30,016,762.54 103,425,874.70

71,758,056.30

78,940,460.79

874,489.12 869,895.45

25,193,813.93 20,960,079.77

740,500.00 60,767,699.72

563,532.60 1,187,064.38

2,911,257.73

332,611.03

4,197,051.02

48,474.05

33,045,307.21 718,105.76 274,948.62

4,945,516.68

11,681,804.23

37,900.00 63,540,386.22

601,331,746.98 30,241,961.28

461,742.89

284,141,154.33

1,744,384.57

107,662,093.42

1,750,596.98

7,489,393.83

38,983,878.27

11,681,804.23

63,578,286.22

517,031,591.85 632,035,451.15

632,035,451.15

ASSETS

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Technical ReservesReserves for Premiums - Personal InsuranceLife Insurance - Mathematical ReserveCollective Insurance - Current Risk ReserveSingle Insurance- Current Risk ReserveFuneral InsuranceReserve for Premiums - General InsuranceEquityLiabilitiesReserves for Benefits and Claims PendingLifeCollectiveSingle for PersonsFuneralEquity and LiabilitiesPremiums Collected in AdvancedLiabilities PayableTaxes and ContributionsAccrued ExpensesSundry AccountsAccounts PayableIntermediary AccountsCoinsurance AccountsAccounts Payable EmployeeReinsurance AccountsChecking Accounts with ReinsurersChecking Accounts with Reinsurance IntermediariesTransitory LiabilitiesOther Deferred ChargesReserves for Current RiskOther PurposesUpdate of the Securities Granted as Guarantee to the NationCapitalCapital Subscribed and PaidEarned SurplusLegal ReserveRetained EarningsNon-Realized SurplusReserve for the Revaluation of Security InvestmentsReserve for the Revaluation of Real PropertyProfit of the PeriodProfit

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

Memorandum AccountsPremiums Issued ReceivableTrust Fund AssetsFunds and Contracts AdministeredTOTAL MEMORANDUM ACCOUNTS

10,388,446.00 14,078,958.00 19,528,010.00

156,419.00

40,031,768.00 5,003,241.00

2,512,739.00 47,695,972.00

3,758,629.00 289,071.00

34,597,938.00

4,975,000.00 55,672,121.14

44,151,833.00

45,035,009.00

88,854,349.00

4,372,409.01

34,519,596.62 5,062,215.17

4,830,219.01 1,422,485.58

17,659.67 4,586,989.86

47,521,128.71 27,947,742.34

78,000.01

581,938.54 133,596.78

49,750,000.00 60,647,121.14

14,288,442.03 36,285,114.49

46,945,741.89

601,331,746.98 30,241,961.28

461,742.89

182,413,600.01

39,581,811.79

10,857,354.12

75,468,871.05

78,000.01

715,535.32

110,397,121.14

50,573,556.52

46,945,741.89

517,031,591.85

632,035,451.15

632,035,451.15

LIABILITIES

Balance SheetAS OF DECEMBER 31, 2008

STATED IN VEF

BANESCO SEGUROS, C.A.Subscribed Stock: Bs. 49,750,000.00

Paid in Capital: Bs. 49,750,000.00Registered in the Finance Ministry under Number 109

Caracas / Venezuela RIF:J-30083118-3

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Personal Insurance Transactions

Premiums for the PeriodBenefits and Claims in Charge of ReinsurersOperating Expenses Reimbursed by ReinsurersShare of Reinsurers ProfitsTechnical Reserves from Previous PeriodTechnical Reserve for the Period in Charge of ReinsurersTaxes Charged to Reinsurances

Overall Insurance Transactions

Reimbursed PremiumsClaims Reimbursed by ReinsurersOperating Expenses Reimbursed by ReinsurersShare of Reinsurers ProfitsTechnical Reserve from the Previous PeriodTechnical Reserve for the Period in Charge of ReinsurersTaxes Charged to ReinsurancesClaims Salvage

Reinsurance Accepted Transactions

General Insurance Accepted PremiumsTechnical Reserve from the Previous Period

Overall Management Activity

Securities' UpdateIncome from Trust FundsIncome from ServiceBenefits Sundry

TOTAL INCOME

518,634,549.04 21,587,457.80

5,302,765.84 2,363,474.38

59,921,673.00 36,969,295.00

852,489.92

702,344,667.03 28,537,994.78 36,274,187.37

95,513.14 249,419,453.00 233,093,847.00

5,803,537.57 8,720,414.86

57,455.44 2,924.65

23,742,401.71 101,218.60

1,083,500.65 5,137,937.65

645,631,704.98

1,264,289,614.75

60,380.09

30,065,058.61

1,940,046,758.43

INCOME

Profits and Losses SheetAS OF DECEMBER 31, 2008STATED IN VEF

BANESCO SEGUROS, C.A.Subscribed Stock: Bs. 49,750,000.00Paid in Capital: Bs. 49,750,000.00Registered in the Finance Ministry under Number 109Caracas / Venezuela RIF:J-30083118-3

19A N N U A L R E P O R T 2 0 0 8

Personal Insurance Transactions

Reimbursed BenefitsReimbursed ClaimsReturned PremiumsCommissions and Costs of AcquisitionPremiums Ceded to ReinsurersTechnical Reserves for the PeriodTechnical Reserves from Previous Periods with ReinsuranceAdministrative ExpensesRefund due to Favorable ExperiencePremiums Paid for Concept of Reinsurance not Proportional

General Insurance Transactions

Reimbursed ClaimsReturned PremiumsCommissions and Costs of AcquisitionPremiums Ceded to ReinsurersTechnical Reserves for the PeriodTechnical Reserves from Previous Periods with ReinsuranceShare of Reinsurers in Claims SalvageAdministrative ExpensesPremiums Paid for Concept of Reinsurance not Proportional

Reinsurance Transactions Accepted

Reimbursed Benefits and ClaimsAdministrative Expenses

Overall Management Activity

Administrative ExpensesFinancial ExpensesUpdate to the Reserves for ProvisionsUpdate to Securities and Other AssetsLosses on AssetsService ExpensesOther Expenses

TOTAL EXPENSES

Income for the PeriodProfit

TOTAL

28,318,245.03 239,185,348.27

28,867,641.49 19,879,036.93 48,709,611.63

135,377,539.00 12,982,311.00 41,236,007.44

87,494.24 24,416,497.49

108,616,146.79 9,252,129.40

55,328,135.84 543,001,080.38 312,726,794.00 167,246,327.00

253,479.11 56,423,462.88 10,234,541.76

68,828.23 90,232.15

1,778,306.06 843,971.01

37,171,389.59 3,144,115.86

19,338.06 5,637,112.64 2,205,893.26

46,945,741.89

579,059,732.52

1,263,082,097.16

159,060.38

50,800,126.48

1,893,101,016.54

46,945,741.89

1,940,046,758.43

EXPENSES

Profits and Losses SheetAS OF DECEMBER 31, 2008

STATED IN VEF

BANESCO SEGUROS, C.A.Subscribed Stock: Bs. 49,750,000.00

Paid in Capital: Bs. 49,750,000.00Registered in the Finance Ministry under Number 109

Caracas / Venezuela RIF:J-30083118-3

SERVICE POINTS

20 A N N U A L R E P O R T 2 0 0 8

Barcelona - Estado AnzoáteguiAv. Nueva Esparta, C.C. Nueva Esparta, Módulo 2, Piso2, Locales 1 y 2, Sector Venecia.Telephones: (0281) 263.2666 / 7114 / 6842 / 6254

Punto Fijo - Estado FalcónAv. Pumarosa, Esq. Calle Don Bosco, Centro ComercialWever. Telephones: (0269) 245.2025 / 0381 / 0392

Pampatar - Estado Nueva EspartaC.C. La Redoma, 2da. Etapa, Nivel Mezzanina, Locales84, 85 y 86, Los Robles.Telephones: (0295) 262.3021 / 4655 / 3705

San Cristóbal - Estado TáchiraAv. Guayana, C.C. Paseo La Villa, Local B. Telephones:(0276) 341.9116 / 1002 / 4205 / 5321 / 2152 / 4002

Puerto Ordaz - Estado BolívarCalle El Aro, cruce con Calle Guri, Alta Vista Sur, C.C. TorreAlférez, Local 1 P.B. Telephones: (0286) 966.8111 / 8127/ 8125 / 8127 / 8023

Barinas - Estado BarinasAv. Cruz Paredes, entre Av. Sucre y Av. Marqués del Pumar,Torre Unión, Nivel Mezzanina.Telephones: (0273) 532.3177 / 2804 / 0420

Araure - Estado PortuguesaAv. 13 de Junio, entre Av. 17 y 18, Edif. Inverfica, PB., Local2. Telephones: (0255) 664.1732 / 0879 / 2801

METROPOLITAN AREA • COUNTRYSIDE

Metropolitan AreaOficina PrincipalCentro San Ignacio, Torre Kepler, Piso 1, Av. Blandín, Urb.La Castellana. Telephone: (0212) 277.7011

Oficina Comercial Centro San IgnacioCentro San Ignacio, Nivel Chaguaramos, Lado Oeste, Av.Blandín. Urb. La Castellana. Telephone: (0212) 277.7022

Oficina Comercial Los Dos Caminos Av. Sucre de Los Dos Caminos, cruce con SegundaTransversal, Edif. Banesco Seguros, Urb. Los Dos Caminos.Telephone: (0212) 285.3311

Oficina Comercial Solano, Torre Banesco IIIAv. Francisco Solano López, Sabana Grande.Telephone: (0212) 706.8415

Torre Las MercedesAv. Francisco de Miranda, entre calles Cecilio Acosta y Av.Mohedano, Chacao. Telephones: (0212) 277.8511 / 8400

CountrysideMaracaibo - Estado ZuliaAv. 9 con calle 78 (Dr. Portillo). Edf. Banco Industrial,Locales 14 al 17, PB. Telephones: (0261) 798.1793 / 2695,798.2695 / 797.0591 / 2374

Maracay - Estado AraguaAv. Las Delicias, C. Empresarial Europa, Nivel PB, LocalesPB y PB2. Telephones: (0243) 242.4364 / 3307 / 0482 /5309. Urb. La Floresta, Calle Los Clubes, N˚ 10.Telephones: (0243) 242.3782 / 2135 / 1343 / 3692

Valencia - Estado CaraboboAv. Bolívar Norte entre Calle Montalbán y San José deTarbes, Torre Unida, Piso 2.Telephones: (0241) 820.8173 / 8175 / 8056

Barquisimeto - Estado LaraAv. Lara con Av. Los Leones, C.C. Río Lama, V Etapa, NivelIntermedio, Locales 12-14 y 15. Telephones: (0251)254.0722 / 5322 / 267.6114 / 251.7522 www.banescoseguros.com

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S p e c i a l i z e d S e r v i c e C e n t e r