The Pensions segment posted some of the best results reported by Unibanco AIG for 2004. The growth in sales of PGBL and VGBL plans stood out. In the Retail segment, the highlight was the sales boldly supported by a network of 391 consultants in pensions and life insurance stationed at Unibanco's branches. The corporate segment grew 45.2% in 2004, pulled by the migration of closed plans to open supplementary pension plans and by partnerships with HR consulting firms. Unibanco AIG manages about 800 corporate pension plans with over 600,000 participants. The highlights of this market in 2004 were:

Net income of R$55 million, up 13.2% from the previous year.
Revenues of R$1,518 million, 24.5% higher than in 2003.
Technical reserves of R$4,433 million, 44.4% above the balance registered in 2003.

Efficiency

Unibanco AIG has posted scale gains year after year, backed by the internal restructuring in the segment of basic life policies and pensions, and a continuous quest to reduce costs and improve agility and efficiency. The ratio of administrative expenses to revenues reached 6.9% in 2004, down from 7.6% in the previous year, confirming the success of efficiency-oriented policies.

The Internet has been an invaluable efficiency instrument, becoming a powerful tool to reduce costs and streamline communication. The brokers' website (www.corretorunibancoaig.com.br) is now the main business channel for Unibanco AIG, contributing with major cost reduction. Other distribution channels have also been promoted, such as direct sales of policies and the offer of extended warranty policies through Unibanco's consumer finance businesses.