FULLCOVER speaks to Gustavo M. Guimarães, President of the Board of Directors of Seguradoras Unidas, about the continued growth of the Apollo Group and its investment strategy in Portugal. Interview with Jan de Pooter, CEO of Tranquilidade, about the challenges, the areas and opportunities for change and his leadership goals.

1. APOLLO GROUP
A major investor
in the portuguese
insurance market

2. Established in 1990 in the USA by a group
of experienced investors, Apollo manages
a portfolio of assets covering private
equity, credit and real estate. Apollo
is present in three continents – North
America, Europe and Asia – and has a
network of 15 offices.
The financial sector was, from the start,
apriorityinitsdevelopmentstrategyandits
firstinvestmentwasinaninsurer.Banking
andinsurancefeatureprominentlyinits
investmentportfolio;AtheneUSA,oneof
thebiggestfixedannuities(pensionplans)
insurers,iscurrentlythebiggestasset
managedbyApollo.
Even the tough economic conditions
of the last few years have not prevented
Apollo registering significant growth;
assets worth $160 billion were under
management in Q1 2015, by the end of
2016, it was $192 billion.
GustavoGuimarãesexplainshowthe
firmmanagestosustaincontinuedgrowth
anddeliverexceptionalresults:“Apollo
integratesallitsoperations,believingthis
isthekeydifferentiator.Itsinvestment
strategy,appliedsuccessfullyovertheyears,
enablesittoidentifygoodinvestment
opportunities,providecapitaltosupport
andcreateleadingcompaniesandadd
valueforinvestorsacrossseveralsectors”.
Gustavo also mentions Apollo’s
flexibility in how it approaches and
invests in various company set­‑ups
and during differing market cycles,
evidences its strong market expertise.
f u l l c o v e r
43
Apollo Global Management is a leading worldwide asset manager.
The American private equity firm has a long history of raising,
investing and managing funds for some of the world’s most prominent
institutional (blue chip) and individual investors, including large­‑scale
American pension funds and sovereign wealth funds.
In Portugal, Apollo has increased its investment in the insurance sector.
After investing in Tranquilidade in 2015, Açoreana Seguros followed
in 2016 and by the end of the year both were merged into a single
business under the Seguradoras Unidas umbrella. Tranquilidade
and Açoreana however were kept as commercial brands.
Gustavo M. Guimarães, President of the Board of Directors of
Seguradoras Unidas, speaks to FULLCOVER about the continued
growth of the Apollo Group and its investment strategy in Portugal.
apollo group
Gustavo M. Guimarães, President of the Board of Directors of Seguradoras Unidas.

3. m d s m a g a z i n e
44
A different approach
For Gustavo Guimarães, the Apollo Group
has a different approach to the investment
process: “It starts with the autonomy
it gives the management teams of
companies it invests in. Apollo believes in
a model that, while as shareholder it may
contribute with capital, knowledge and
better working practices, it also values
the independence of the companies’
management teams and local managers.
It is they who should define the strategy,
without conflict of interest, receiving
incentives which ensure shareholder and
company objectives are fully aligned.”
Apollo operates in sectors which can be
complex from a regulatory, supervisory
and legal perspective. Gustavo assures:
“The operation is always intent on
minimizing the risks and sharing its
vast experience in governance models,
compliance and managerial ethics with
the companies it supports.”
The business is equally experienced
in carrying out investments during
times of economic and financial market
uncertainty and finding business
opportunities that not only add value
for investors, but also for the countries it
invests in.
Gustavo adds: “Apollo has a history
of being a responsible, result­‑oriented
investor with a long­‑term development
perspective and a constructive approach
to the managed companies it works
with. This can already be observed in its
affiliates in Portugal.”
Equally strong collaboration between
company management teams ensure
group portfolio integration which further
contributes to its global development.
“The integrated business model
combines the strength of private equity,
credit and real estate platforms with
important factors such as long­‑lasting
investor relations (including many
important pension/global sovereign
funds and institutional/private investors),
a long­‑term capital base, a strong
reputation and a team with a great know­
‑how,” he says.
Outside the financial sector, Apollo has
interestsinotherareassuchasdistribution,
transport, media, telecommunications,
industry and natural resources. “Apollo
is very committed to Portugal, there is a
desire to invest medium to long term in the
country and to diversify into other sectors,”
Gustavo states.
Investment Plans
Apollo started investing in Europe in
2001 and since then has been growing in
highly regulated sectors such as banking
and insurance, with acquisitions in the
United Kingdom, Italy, Germany, Spain
and Portugal.
Having bought Tranquilidade in
early 2015 and Açoreana in 2016,
these investments now position both
companies as the second largest non­‑life
insurance operator in Portugal, holding
more than 15% of market share. Adding
to this investment is the purchase of
AdvanceCare’s business – shareholders
in Europ Assistance ­– giving the group
further interests in the insurance and
health sectors.
Gustavo confirms: “These investments
by Apollo are a sign of the trust this
important international investor has in
the national economy and especially the
Portuguese insurance sector.”
We asked Gustavo Guimarães
what Apollo’s future plans are for
Tranquilidade and Açoreana. He replies:
“We have clear objectives of growth and
to take a leading position in Portugal.
We want the best people, with the best
practices, demonstrating a culture of
innovation. We want to be recognized
as the market leader for collaboration,
efficiency, service quality and solvency.
Our ambition is to be the investor of
choice for partners and clients and to
be the insurance company that delivers
outstanding value”.
Gustavo concludes the insurer sector
and, specifically, the Portuguese market,
are amongst Apollo’s strategic investment
plans: “Apollo is very committed to
Portugal, there is a desire to invest
medium to long­‑term in the country and
to diversify into other sectors. This is
evidenced by the recent acquisition of
Veralia, a leading company in the glass
packaging market, located in Figueira
da Foz. Within the Portuguese insurance
market, Apollo’s investments confirm its
commitment to develop a sector which
faces a lot of challenges.” •
Apollo is very committed to
Portugal, there is a desire to
invest medium to long term in
the country and to diversify
into other sectors

4. Ateamof986
employees,
including 376
investment
professionals
$192 billion
of assets under
management
(as of December 2016)
Company
listed in
the New
York Stock
Exchange
(NYSE)
Global company
with 15 offices
in 3 continents
IllustrationbyTiagoGalo

5. Established in 1871, the Tranquilidade brand is well­‑known in all
business sectors for its portfolio of comprehensive and specialist
insurance for individuals and companies. Its products are
distributed via a network of brokers and agents who are respected
for their industry knowledge and expertise.
With Tranquilidade’s 145­‑year history, detailed market knowledge,
steady growth and reputation for innovation it aspires to be the
insurer of choice for clients and partners.
The merger of Tranquilidade and Açoreana – another centenary
brand – in 2016, created Portugal’s second biggest non­‑life insurance
company with a market share of more than 15%, some 1.4 million
clients and almost 650 million euros in premiums volume. This
alliance has scale to grow and invest; its plan for the coming years
is to embrace the opportunities that present themselves within
its chosen markets, maintain its competitive edge and follow
clear strategic priorities of growth, profitability, simplicity and
service quality.
Jan de Pooter, the insurer’s ceo, discusses with FULLCOVER
the challenges, the areas and opportunities for change and his
leadership goals.
maintaining that
competitive edge
m d s m a g a z i n e
46
INTERVIEW WITH JAN DE POOTER, CEO OF TRANQUILIDADE

7. You’ve been Tranquilidade CEO since 2015. Having
worked in so many different insurance areas and
countries, why did you accept this challenge ?
Tranquilidade is a brand with history; it’s very strong
and well­‑recognized in the market and being able to
be a part of this project, leading its transformation and
consolidation, was irresistible.
Besides Portugal, where else have you gained your
experience?
I worked in Asia, spending three years in Kuala Lumpur,
where I launched the first bancassurance partnership of
the Fortis Group in Asia with one of the biggest banks in
Malaysia, Maybank. Living and working in other places is
an enriching experience, not only professionally but also
personally.
The Apollo Group is now a shareholder of
Tranquilidade. How does this impact on the
company’s strategy and how is it adapting to a
different organizational culture?
The Apollo Group is not an insurer, it is an investor
and this factor enables it to recognise and respect
Tranquilidade’s existing culture, supporting it with new
perspectives and knowledge.
Having a new shareholder allows access to partners,
suppliers and the best managers in the world, which is
clearly an advantage for the company. Furthermore, we
can share the good practices and experiences of other
countries. Stability and growth are the two key­‑words
Apollo Group brings to Tranquilidade.
In 2016, Açoreana joined Tranquilidade. How does
this acquisition add value to the Group and to the
insurance market?
The acquisition of Açoreana was a very important
milestone in 2016; Tranquilidade and Açoreana are
two centenary brands, with a history of experience and
expertise that positions them as leading players in the
Portuguese insurance sector. After the legal merger at
the end of the year, we became the second biggest non­
‑life national insurer. Our expanded operation ensures
we are better prepared for future growth; we can build
upon our market presence, increase efficiency and our
competitiveness and invest more in technology, new
processes, products, quality of service and information.
This creation of a very strong operator in the market
also brings added value for our clients, associates and
partners.
The Portuguese market has been highly
concentrated. What is the impact of this upon the
national insurer market?
I believe the consolidation process is a natural step in
a mature market such as Portugal and it will of course
have an impact. Recently we have witnessed a high
concentration of insurers; in 2008, the top five non­‑life
insurance companies, held 52% of the market share and
now this has risen to 70%. The markets predict this trend
will continue. As far as I am concerned, a market with
little growth and profitability/low interest rate challenges
can only encourage businesses to deliver greater
efficiency and competitiveness and create potential for
bigger investment capacity.
How did Tranquilidade prepare itself internally for
the Solvency II requirements? What was the impact
on the company and markets worldwide?
Preparation for Solvency II has been in progress for some
time before the 2015 deadline. Tranquilidade has been
implementing several initiatives gradually and defining
policies in fundamental areas, such as investment
and risk management, reinsurance, remuneration,
outsourcing, compliance and auditing.
The new system is more than an internal regulation
and the procedure of evaluating processes and risks has
created opportunities for improvement. For example,
risk planning enables us to revise our sales strategies
and product design to optimize risk capitals and price
premiums more competitively. To me, the biggest
impact of Solvency II, which is risk­‑based capital, is the
need to adjust the capital to the risk profile. In market
terms, this implies several companies will have to adjust
their strategies, not only on a national scale, but also
internationally. On the other hand, it may also facilitate
increases in capital; something that will occur across
Europe. Another consequence of Solvency II is the need
for greater information transparency, with detailed
solvency reports available for the many stakeholders.
This, together with optimizing companies’ risk capital (as
mentioned before), delivers peace of mind to our insured
and investors, plus it’s an instrument that creates value.
m d s m a g a z i n e
48
Stability and growth
are the two key-words
Apollo Group brings
to Tranquilidade.

8. Tranquilidadehasahistoryofdevelopinginnovative
solutions. It was, for example, the first insurer
in Europe to launch personal accident insurance
for ‘Pokemon Go’ players. What is the strategy
that enables you to respond to the needs of more
informed and demanding consumers and also place
yourself ahead of the competition?
Weanticipatetheemergingmarkettrendswithproducts,
servicesandinitiativesthatmeetthenewneedsofour
clients.Technologyandhowconsumersreacttoitis
constantlyevolving;therearenewbusinesslinesand
newrisks.Being awareofwhatsurroundsus,findingnew
businessopportunitiesandlookingatproducts,services
andprocesses­‑alwaysfromtheclient’sperspective­‑are the
determiningfactorsforsuccess.Bycombiningourtechnical
expertisewithourcapacityforinnovation,weareclearly
settingourselvesapartandwewillcontinuetodoso.
Ourkeyfocusistoimprovetheconsumer’sexperience,
developspecificproductsforstrategicsegmentsandto
ensureournon­‑compulsoryinsuranceproposalsadd value.
Recent studies point out to a paradigm shift in
clients’ relationships with insurance companies
and an increasing reliance on the use of digital tools.
What challenges does this present to insurers, is
technology disrupting the traditional business
methods and how is Tranquilidade adapting to this
new digital era?
It is indeed, a challenge for the market and naturally,
for Tranquilidade. The market is changing sharply, with
consumers becoming increasingly sophisticated in their
buying patterns, which we have to know better. In an
industry with multiple players and complex processes, we
have an ambitious goal which is to increase the efficiency
and agility of our processes and ensure a relevant and
effective follow­‑up for our clients and brokers.
I trust that over the next few years, technology will
simplify processes and products further and greatly
impact the after­‑sales service. We shall continue to focus
on these areas, launch new products and services and
continue to simplify our processes.
One of our top operational priorities is to improve
the client’s experience with the company in two key
areas; how we service and how we simplify client
communication/enable better access to information.
We have several ongoing initiatives for simplifying
and optimizing processes all relating to products,
subscription, after­‑sales and claims. These include;
the upgrading of systems, new health, home and life
products and services, moving from paper to electronic
communication with clients and brokers, launching
an e­‑learning platform and looking into new ways of
monitoring clients’ claims.
f u l l c o v e r
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Our key focus is to improve the
consumer’s experience, develop
specific products for strategic
segments and to ensure our non-
-compulsory insurance proposals
add value.
Paula Rios of MDS Group with Jan de Pooter and Cristina Brandão of Tranquilidade.
apollo group

9. And is there any area where you see digital being the
dominant channel?
Claims is an area where digital interaction with the client
is perfectly possible. We are already seeing examples
of this, such as when opening claims’ cases by simply
sending a photo to the insurer. Another area is in
information provision; with more and more information
becoming easily available, there’s greater capacity for
analysis. I think process simplification and data analytics
are probably the most important components of the new
digital age and these will add huge value, both for the
client, the companies and distribution networks.
Tranquilidadehasbeenawardedseveralprizes.
ItwaselectedSuperbrand2016andwasgiventhe
portugueseBestBigNon­‑lifeInsureraccoladefrom
Examemagazineforthesixthtime.Whatisthe
importanceofthisbrandrecognitionfromconsumers?
I consider these prizes to be recognition for our work. They
are important distinctions and, to quote our advertising
campaign, ‘bring more responsibility to us and more
tranquility [translation of Tranquilidade] to our clients’.
They are stimuli to continue improving our services
and products. We have a history of almost 150 years and
will continue to be the insurer of choice for our clients and
partners. We want to be leaders in client satisfaction and
profitability, unrivalled in the quality of the partnerships
we establish with brokers and agents and ahead of the
market for the support we give and receive from our
employees. Being recognized is very gratifying.
YouareimplementingtheAmbição2020[Ambition
2020]project.Whatarethegoalsbehindthisstrategy?
Ambição 2020 is a project we launched in early 2016 and
it will be our strategic pathway for the next few years,
providing a platform for growth. This project involves
all within the company (over 100 employees are directly
involved), and analyzes the national and international
market trends and their impact on or business. This in
turn, defines our future strategic direction.
Ambição2020hasfivekeyfoundations; the first is
technicalexcellence–everythingrelatedtoclaimsand
pricingsophistication,thesecondistosimplifyand
digitalizeprocessesandservices,thirdis tofocuson
strategicsegmentsandproducts,fourthistocontinue to
developthemostefficientdistributionnetworksand last
butnotleast(onthecontrary)istofurther developour staff.
We have well defined goals and all involved are aware of
the role they play. Progress is already very noticeable and
this will certainly be evidenced in our results in the next
few years.
In 2016 you attained growth in your results and your
client base. What is Tranquilidade’s plan for the
future?
The Ambição 2020 vision is a strategy for growth.
We intend to grow in market share, volume, quality,
profitability and service. Traditional companies have
been more focused on compulsory lines – auto and work
related accidents – giving us an opportunity to grow in
non­‑compulsory lines, by launching innovative services
and products. We want to develop in strategic areas, such
as health and life and focus on innovation and insurance
which adds more value to everyone. We want to anticipate
and meet the needs of clients in all sectors offering
simplicity, innovation and professionalism – even in
product lines such as car insurance that will inevitably
become a lower priority within insurers’ portfolios.
In your view, what are the future challenges and
opportunities in the insurance industry and how do
you see the role of brokers?
We will have an increasingly complex market,
characterized by digital and emerging risks. In the
corporate area there are cyber risks and threats arising from
globalization. I believe brokers will have a stronger role
in the management of their clients’ insurance portfolios,
offering differentiating products and complementary
services that allow risk prevention and mitigation.
And do you foresee any changes for insurers?
In Portugal, the consolidation process will have a great
impact on the market during the next few years; new
players ­‑ of a bigger dimension and scale – will emerge
and the resultant shareholder changes will bring more
rationalisaton and efficiency to the market. I think
insurers will revise their risk assumptions, given the
new risk based capital regime, leaving some to focus on
other areas of risk. Then, as I already mentioned, there
will be greater process simplification, more use of digital
channels to communicate with clients and partners
and increased transparency and quality with after­‑sales
services.The opportunities presented by data analytics
and new risks are also important.
Tranquilidade and MDS have worked very closely
together throughout the years. How would you
describe this relationship?
The relationship between MDS and Tranquilidade is
very important; our ethos of co­‑operation, trust and
professionalism has enabled us to support MDS in the
different business areas it has developed, such as those
managing contracts with State and public entities, the
network of agents and partners and of course, brokerage.
It is a partnership we are committed to and one we wish
to develop further.
m d s m a g a z i n e
50

10. Inrecognitionthateducationisakeyelementofyour
corporate social responsibility policy, you recently
established a partnership with Universidade Nova
– School of Business and Economics. What are the
goals of this partnership?
Nova­‑SBE is one of the most reputable and innovative
institutions of higher education in Portugal and is
ranked amongst the best business schools in the world.
Tranquilidade’s support of a new Nova­‑SBE university
campus, which is being built in Carcavelos, near Lisbon,
is part of a partnership that includes training, talent
management, digital transformation, consumer analytics
and distribution networks. Our ‘consulting labs’ program
is also part of the partnership. Here, Tranquilidade will
present challenges to Nova­‑BSE students and teachers,
giving them experience of working with business
professionals while within a university environment. This
will be reflected in the student’s Masters Thesis which
while covering a relevant area and meeting demanding
criteria, bring the fresh vision of young people into the
company.
The insurance sector must better promote the
benefits it brings society. Do you agree?
Yes. The image of the insurance sector has been
improving but there is still a lot of work to be done. The
importance of insurance, whether covering an individual
life/families’ lives or protecting companies’ assets is
not always properly acknowledged. Our sector and the
essential role it plays within the economy must convey
this message more effectively. It is clear insurance
is a business, but it also adds value to society and is
fundamental to the sharing of information. Most people
do not appreciate the value of the claims we pay and
what insurers return to society. This communication
is everyone’s responsibility: the Portuguese Insurers
Association, insurers, brokers and agents.
On the other hand, it is also important to attract new
talent to the sector, showing how interesting it can be to
work in insurance and how it encompasses numerous
knowledge areas. Our partnership with Nova­‑BSE will
help promote this. •
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We want to be leaders in client
satisfaction and profitability, unrivalled
in the quality of the partnerships we
establish with brokers and agents and
ahead of the market for the support we
give and receive from our employees.
Century-old brands, Tranquilidade and Açoreana have
a long history and emotional connection with Portugal
and its people. They operate across all business areas
offering a wide range of products, including specialist
insurance, distributed via a network of brokers
and agents who are renowned for their expertise.
Tranquilidade and Açoreana’s profound market
knowledge, solid foundations for growth and brand
reputation ensures they are the insurer of choice for
clients and distribution partners.
The merger of Tranquilidade and Açoreana in 2016
formed the second biggest non-life insurance operator
in Portugal; it has more than 15% market share of
non-life business, some 1.4 million clients and receives
almost €650 million in annual premiums.
Tranquilidade and Açoreana aspire to be the market
leaders for client satisfaction and profitability; something
that will be achieved due to the unrivalled quality of
broker partnerships and employee support.
apollo group