3Q Subsidiary Results

RNS Number:9979R
Espirito Santo Financial Group S.A.
13 November 2003

ESPIRITO SANTO FINANCIAL GROUP S.A. ANNOUNCES THE RESULTS OF
ITS INSURANCE SUBSIDIARIES FOR THE  NINE MONTHS TO SEPTEMBER
                         2003

Espirito Santo Financial Group S.A. ("ESFG") (NYSE and Euronext Lisbon:ESF)
announced today the un-audited results of its insurance subsidiaries for the
nine months to September 2003.

Nine months results at Companhia de Seguros Tranquilidade Vida ("Tranquilidade
Vida"), the life company, continue to show the positive trends already felt
since the first quarter of 2003, which resulted from measures undertaken to
render Tranquilidade Vida's investment portfolio less vulnerable to declines in
stock exchange prices, the improvement in the performance of Portuguese and
international stock exchanges and the effects of the restructuring of
Tranquilidade's insurance business. Net profits for the nine months to September
2003 reached 10.1 million Euros in marked contrast with a loss of 148.8 million
Euros in the same period of last year. This positive result has been achieved
after the full amortization, in the first semester, of 39.5 million Euros of
unrealized losses in Tranquilidade Vida's investment portfolio, still pending
from 2001.

In the nine months to September  2003, total premiums increased 12.7 per cent to
reach 585.6 million Euros, against 519.7 million Euros in September 2002. As a
consequence of the increased emphasis put on traditional products (such as
private pension plans) against capitalization products, premiums in private
pension plans increased 30.1 per cent in the nine months to September  2003,
reaching 263.8 million Euros against 202.8 million Euros in September 2002. As a
result of the above mentioned shift in products, Tranquilidade Vida's total
market share is estimated to have decreased from 17.5 per cent in September 2002
to 16.6 per cent in September 2003.

In the same period, claims increased 66.3 per cent at Tranquilidade Vida,
primarily arising from private pension plans and capitalization products, whilst
technical results improved 13,1 per cent, from 15.3 million Euros  in September
2002 to 17.3 million Euros in September 2003. The solvency ratio improved from
87.0 per cent in September 2002 to 178.0 per cent in September 2003, reflecting
the effect of the considerable improvement in operational and financial results,
combined with  the capital injection carried out in the end of 2002.

At Companhia de Seguros Tranquilidade ("Tranquilidade") the non-life company,
nine months results also continue to show the positive effects of  measures
designed to improve Tranquilidade's underwriting results and to reduce costs,
which have been implemented over the last two years. Net profits reached 22.0
million Euros in the nine month to September of  2003 against a loss of 51.9
million in the same period of  2002, whilst the combined ratio declined from
108.1 per cent to 93.7 per cent in the same period.

In the nine months to September 2003 claims declined 1.1 per cent   to 151.2
million Euros, against 153.0 million Euros in the corresponding period  of 2002,
whilst the claims ratio before reinsurance declined from 64.5 per cent to 62.6
per cent and, after reinsurance, from 72.9 per cent to 63.1 per cent in the same
period.

Increased selectivity in accepting risks resulted in a decline in premiums of
2.2 per cent, from 247.2 million Euros in September 2002, to 241.7 million Euros
in September 2003 and contributed to a decline in estimated market share from
8.5 per cent  in September 2002 to 7.9 per cent  in September 2003.  Total costs
were reduced by 1.7  per cent, from 67.8 million Euros in September 2002 to 66.6
 million Euros in September 2003, with continuing emphasis in personnel costs,
which declined 10.1  per cent in the same period. Tranquilidade's solvency ratio
reached 245.0 per cent  in September 2003.

In the first nine months of 2003, net profits at Espirito Santo Seguros ("ES
Seguros"), (non-life bancassurance) reached 2.3 million Euros, corresponding to
an increase of  199.6  per cent over the results in September 2002. Premiums
increased 26.6  per cent in the same period to reach 36.7 million Euros.


13th November 2003


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