SUPERINTENDENCY OF BANKING, INSURANCE AND AFP Republic of Peru

Los Laureles No. 214 - Lima 27 - Peru Tel.: (511)6309000 Fax: (511) 6309239

Lima, 19 September 2012

Resolution S.B.S. Nº 7037-2012

The Superintendent of Banking, Insurance and
Private Administrators of Pension Funds

WHEREAS:

That numeral 13 of article 349° of the General Law of the Financial System and the Insurance System and Organic Law of the Superintendency of Banking and Insurance, Law Nº 26702 and its amendments, hereinafter General Law, states that the Superintendency has the attribution to issue general rules to specify the preparation, presentation and publicity of financial statements, and any other complementary information, ensuring that the real economic-financial situation of the companies under its supervision is reflected;

That, through Resolution SBS Nº 348-95 and its amending rules, the Chart of Accounts for Companies of the Insurance System, hereinafter Chart of Accounts, was approved;

That, it has been considered necessary to harmonize the accounting rules issued by this Superintendency, taking into account the nature of the companies that make up the supervised systems, towards the International Financial Reporting Standards (IFRS);

That, in order to gather the opinions of the general public regarding the proposed amendments to the Chart of Accounts, the pre-publication of the draft resolution on the electronic portal of the Superintendency was ordered, under the provisions of Supreme Decree N° 001-2009-JUS;

That, with such objective it is necessary to amend the Chart of Accounts;

Having regard to the opinion of the Deputy Superintendencies of Private Administrators of Pension Funds and Insurance, of Risks, of Economic Studies and of Legal Advice;

In use of the attributions conferred by numerals 9 and 13 of article 349º of the General Law;

RESOLVES:

Article One.- Amend the Chart of Accounts for Companies of the Insurance System approved by Resolution SBS N° 348-95 , as indicated

in the attached Annexes A and B, which are published on the electronic Portal of this Superintendency (www.sbs.gob.pe), in accordance with the provisions of Supreme Decree N° 001-2009-JUS.

Article Two.- In matters not contemplated in the Chart of Accounts, insurance companies must observe International Financial Reporting Standards (IFRS) officialized in the country by the Accounting Standards Council, and, in those cases not contemplated by these, the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) shall apply or, subsidiarily, the Generally Accepted Accounting Principles (GAAP) in force in the United States of America, issued by the Financial Accounting Standards Board (FASB).

Article Three.- Annex 1 “Note referred to the categories of financial instruments”, Annex 2 “Note referred to the concentrations of financial instruments”, Annex 3 “Note referred to the disclosure of the fair value of financial instruments”, Annex 4 “Note referred to the sensitivity analysis of the mortality table and the interest rate”, Annex 5 “Note referred to the concentration of general and life insurance risks by geographic area”, Annex 6 “Form B-1” and “Form B-2”, Annex 7 “Form C” and Annex 8 “Form D” form part of this Resolution, which are published on the institutional Portal (www.sbs.gob.pe), in accordance with the provisions of Supreme Decree N° 001-2009-JUS.

Article Four.- FINAL AND TRANSITORY PROVISIONS.-

First.- Implementation plan

In fiscal year 2012, insurance companies must submit an implementation plan, which must contain a schedule of activities of the process of adaptation of the accounting and computer system to the regulations approved by this Resolution, in accordance with the instructions that this Superintendency issues through Multiple Official Letter.

Second.- Preparation and presentation of financial statements fiscal year 2013

Insurance companies must prepare and present their financial information, in accordance with the following guidelines:

1. The initial balances of fiscal year 2013 must be adjusted to the new accounting policies, recording such effect against the accumulated results accounts, in the month of January 2013.

2. In the quarterly financial statements corresponding to the 2013 period (March, June and September), the comparative presentation will not be required, however the entities will disclose in notes the following:

a) A complete set of significant accounting policies; and,

b) A description of the change in accounting policy.

3. For the annual financial information corresponding to fiscal year 2013, the disclosure in notes will be in comparative form with the previous year, to the extent practicable. Likewise, as one of the notes to the annual financial statements, the effect on each of the items of the financial statements of the application of the new requirements must be disclosed; that is, compare the final balances as of 31/12/2012 determined based on the previous accounting principles with the adjusted financial statements indicated in point 1.

4. The new criteria for impairment of financial instruments will be applied prospectively. For comparative purposes of the annual information corresponding exclusively to fiscal year 2013, it will not be necessary to compare with the previous fiscal year.

Los Laureles No. 214 - Lima 27 - Peru Tel.: (511)6309000 Fax: (511) 6309239

Third.- Distribution, capitalization or application

For purposes of the distribution, capitalization or any form of application of the amount resulting from the adjustments indicated in numeral 1 of the Second Final and Transitory Provision, it is required that the annual financial statements of fiscal year 2013 be audited and have the due approval of the General Meeting.

Article Five.- 1 This resolution shall enter into force as of the information corresponding to the month of January 2013, except for the provisions of the First Final and Transitory Provision indicated in article four, which shall enter into force as of the day following its publication in the Official Gazette El Peruano. Likewise, the following are repealed as of the entry into force of this regulation:

a) Articles 16 and 17 of the Regulation for the Payment of Insurance Premiums approved by SBS Resolution No. 225-2006, as well as Annex No. 2 "Provisions for premiums receivable".

b) Circular S-570-97 "Provisions for doubtful collection accounts".

DANIEL SCHYDLOWSKY ROSENBERG
Superintendent of Banking, Insurance and
Private Pension Fund Administrators

[1] Article amended by SBS Resolution No. 9305-2012 of 13-12-2012

Los Laureles No. 214 - Lima 27 - Peru Tel.: (511)6309000 Fax: (511) 6309239

ANNEX A PROVISIONS IN FORCE AS OF 1 DECEMBER 2012 AMENDMENTS TO THE CHART OF ACCOUNTS FOR COMPANIES IN THE INSURANCE SYSTEM

I. THE FOLLOWING ADDITION IS MADE TO THE "TABLE OF FINANCIAL ENTITIES" OF CHAPTER I "GENERAL PROVISIONS":

Code	Entity type	FINANCIAL
69	F	CREDISCOTIA

II. CHAPTER III "ACCOUNTING TABLE AND CHART OF ACCOUNTS" IS AMENDED, IN THE TERMS INDICATED BELOW:

a) The following analytical accounts are eliminated: 1101.01.20 Interest by effective interest rate method 1101.02.20 Interest by effective interest rate method 1101.03.20 Interest by effective interest rate method 1102.01.20 Interest by effective interest rate method 1102.02.20 Interest by effective interest rate method 1102.03.20 Interest by effective interest rate method 1108.01.20 Interest by effective interest rate method 1108.02.20 Interest by effective interest rate method 1108.03.20 Interest by effective interest rate method 1701.01.20 Interest by effective interest rate method 1701.02.20 Interest by effective interest rate method 1702.01.20 Interest by effective interest rate method 1702.02.20 Interest by effective interest rate method 1708.01.20 Interest by effective interest rate method 1708.02.20 Interest by effective interest rate method

b) Subaccount 1205.04 "Unión Vida" is eliminated

c) The following analytical accounts are incorporated in item 14 "Accounts receivable from reinsurers and co-insurers": 1401.03.02 Claims receivable from ceded reinsurance 1401.03.03 Other accounts receivable from ceded reinsurance 1402.03.02 Claims receivable from ceded reinsurance 1402.03.03 Other accounts receivable from ceded reinsurance 1403.00.01 Premiums receivable from assumed co-insurance 1403.00.02 Claims receivable from ceded co-insurance

1403.00.03
Other concepts receivable
1408.03.02
Claims receivable from ceded reinsurance
1408.03.03
Other accounts receivable from ceded reinsurance

d) The name of the following subaccount is modified, according to the text indicated below: 1601.01 Advances to personnel

e) The following subaccount is created: 1601.05 Capital subscriptions receivable

f) The following subaccounts are eliminated: 1603.01 Mortgage loans 1604.05 Capital subscriptions receivable

g) The name of account 1904 and subaccount 1904.01 is modified and subaccount 1904.03 is added, with their respective analytical accounts: 1904 Asset for income tax 1904.01 Tax credit 1904.03 Deferred income tax 1904.03.01 Deductible temporary differences 1904.03.02 Carryforward losses

h) The name of heading 22 is modified to "Accounts payable to Intermediaries, marketers and auxiliaries" and the following account is created: 2205 Commissions to marketers 2205.00 (Risk) 2206 Commissions to insurance promoters 2206.00 (Risk)

i) The following analytical accounts are incorporated into heading 24 "Accounts payable to reinsurers and co-insurers" 2401.03.01 Premiums payable on ceded reinsurance 2401.03.03 Other accounts payable on ceded reinsurance 2402.03.01 Premiums payable on ceded reinsurance 2402.03.03 Other accounts payable on ceded reinsurance 2403.00.01 Premiums payable on ceded co-insurance 2403.00.02 Claims payable on received co-insurance 2403.00.03 Other amounts payable 2408.03.01 Premiums payable on ceded reinsurance 2408.03.03 Other accounts payable on ceded reinsurance

j) The following analytical accounts are eliminated: 2706.00.01 Insurance premiums 2706.00.02 Accepted reinsurance

Los Laureles Nº 214 - Lima 27 - Peru Tel.: (511)6309000 Fax: (511) 6309239

k) The name of heading 28 and of accounts 2803 and 2809 is modified, as indicated below: 28 Other liabilities 2803 Litigation with third parties 2809 Miscellaneous liabilities

l) The name of heading 29, of accounts 2901 and 2902 and of subaccounts 2902.01 and 2908.01 is modified as follows: 29 Deferred liabilities 2901 Interest on premium installments 2902 Liability for income tax 2902.01 Deferred income tax 2908.01 Interest on premium installments

m) Incorporate the following analytical accounts into subaccount 3801.03 "Unrealized gain on available-for-sale investments": 3801.03.01 Non-compliant with Effective Equity 3801.03.02 In adjustment

n) Headings 49 "Result from exposure to inflation – Loss" and 59 "Result from exposure to inflation – Gain" are eliminated, as well as all their accounts and subaccounts.

o) Subaccount 5602.03 "Bonds" is eliminated.

p) Heading 67 "Cumulative effect of accounting changes" is eliminated, as well as its corresponding accounts.

q) Account 6802 "Result from exposure to inflation" is eliminated.

III. CHAPTER IV "DESCRIPTION AND DYNAMICS" IS MODIFIED, ON THE TERMS INDICATED BELOW:

a) The following credit is added to account 1206 "Overdue Collection" and to account 1208 "Affiliated companies": CREDITS: - For write-offs of uncollectible amounts.

b) The description of accounts 1401, 1402 and 1403, as well as the first debit and the first credit of the dynamics, are modified as follows: DESCRIPTION: They comprise the accounts receivable from operations of reinsurance contracts received and ceded, which include premiums, claims, commissions, profit participations and other concepts, as applicable; as well as the operations of received co-insurance.

Los Laureles Nº 214 - Lima 27 - Peru Tel.: (511)6309000 Fax: (511) 6309239

DYNAMICS DEBITS: - For premiums and other amounts receivable under received reinsurance and co-insurance contracts. CREDITS: - For the collection of balances of current accounts of ceded automatic reinsurance.

c) The description of accounts 1404 and 1405, as well as the first debit of the dynamics, are modified as follows:

DESCRIPTION: It comprises the proportion of the premium established in received reinsurance contracts that the ceding company retains as a deposit, to be collected in accordance with the specifications of the contract. DYNAMICS DEBITS: - For the proportion of premiums retained by ceding companies as a deposit.

d) The first debit of subaccount 1601 is modified and the debit and credit related to the subscription of shares are added, as indicated below:

DEBITS: - For advances granted to personnel. - For the subscription of shares CREDITS: - For the collection of the subscription of shares.

e) The debit and credit indicated below, corresponding to the dynamics of subaccount 1604, are eliminated:

DEBITS: - For the subscription of shares CREDITS: - For the collection of the subscription of shares.

f) The description of heading 19 is modified and the debits and credits indicated for account 1904 are added, as indicated below:

HEADING: 19 OTHER ASSETS DESCRIPTION: It comprises costs applicable to future periods such as intangible investments, policy acquisition expenses, prepaid expenses and deferred charges. In the case of positive goodwill, only that which is produced in the merger of companies is considered. It also incorporates the assets generated by deductible temporary differences between the accounting base and the tax base, and by the right to offset tax losses in subsequent periods. ACCOUNT: 1904 DEFERRED INCOME TAX DESCRIPTION: It comprises the amount of income tax to be recovered in future periods and which has been originated by deductible temporary differences, as well as the effect of the tax shield associated with tax losses generated in previous periods and with unused credits from previous periods that it is reasonably expected to offset in the future.

Los Laureles Nº 214 - Lima 27 - Peru Tel.: (511)6309000 Fax: (511) 6309239

DYNAMICS DEBITS: - For deductible temporary differences arising in the period. - For the amount of the asset arising in a transaction or event that has been recognized directly in an equity item. - For the recognition of the tax shield generated by the Carryforward Losses CREDITS: - For asset reductions for deductible temporary differences that reversed in the period. - For asset reductions for deductible differences arising in a transaction or event that has been recognized directly in an equity item - For the application of the tax shield generated by the Carryforward Losses PRESENTATION: The net credit balance or net debit balance may be presented as a deferred liability or deferred asset, as applicable, provided that such offset meets the requirements established in IAS 12.

g) The name of item 22 is changed to "Accounts payable to Intermediaries, marketers and insurance auxiliaries" as well as its description and dynamics, as indicated below:

DESCRIPTION: Comprises outstanding payments in favor of intermediaries, marketers and insurance auxiliaries and affiliated companies for commissions, services and other miscellaneous items, as well as accounts payable to financial institutions for the bancassurance contracts entered into. DYNAMICS CREDITS: - For miscellaneous accounts payable to insurance intermediaries, marketers and auxiliaries.

h) The description of accounts 2401, 2402 and 2403 is modified, as well as the first debit of the dynamics, and an addition is made to the credits, as follows:

DESCRIPTION: Comprise the accounts payable for the balances of current accounts of ceded and received reinsurance contracts, which include premiums, commissions, profit participations, claims and other items. Similarly, the same items are incorporated for ceded coinsurance transactions. DYNAMICS DEBITS: - For premiums and other items payable for ceded automatic reinsurance contracts CREDITS: - For the various items payable arising from the other reinsurance modalities.

i) The description of accounts 2801, 2802, 2803 and 2809 and their dynamics are modified, as indicated below:

DESCRIPTION: In these accounts, liabilities for time of service compensation, retirement, provisions and other payables are recorded. DYNAMICS DEBITS: - For the decrease in liabilities at the close of the accounting period.

CREDITS
:

For the establishment of the liabilities corresponding to the period for
time of service compensation, vacations, bonuses, retirement, provisions for litigation and others.

j) The description of item 29 is modified, the debit and credit indicated in the dynamics of account 2902 "Deferred income tax" are added, the presentation of this account in the financial statements and the description of account 2909 are modified, as indicated below:

ITEM	:	29 DEFERRED GAINS
DESCRIPTION	:	It comprises those income whose realization will take place in the following year or years, such as interest from premium installments and other deferred income. It also includes liabilities generated by taxable temporary differences when determined on the basis of taxable income.
ACCOUNT	:	2902 DEFERRED INCOME TAX
DESCRIPTION	:	It comprises the amount of income taxes payable in future periods, related to taxable temporary differences.
PRESENTATION:		The net credit or net debit balance may be presented as a deferred liability or deferred asset, as applicable, provided that such offsetting complies with the requirements established in IAS 12.
ACCOUNT	:	2909 OTHER DEFERRED INCOME
DESCRIPTION	:	This account records rents collected in advance from lessees, deferred income from financial leasing operations, deferred income from contingent operations and various deferred income that will accrue in the following year or accounting periods.

k) The description of accounts 4404 and 4405 is amended as indicated below and the following debit is added:

DESCRIPTION	:	These accounts record the bad debts provisioned for premiums receivable and reinsurers' current accounts, in accordance with the provisions of the Superintendency of Banking and Insurance, as well as the corresponding write-offs.
DEBIT DYNAMICS	:	- For the write-off of bad debts

l) The description and dynamics of items 49 "Result from exposure to inflation – Loss" and 59 "Result from exposure to inflation – Gain" are eliminated.

m) The description of account 5609 "Other Financial Income" is amended as indicated below:

DESCRIPTION	:	This account records financial income not included in the preceding accounts. It also includes financial income from contingent operations, which are recognized in the year under the accrual principle.

Los Laureles Nº 214 - Lima 27 - Peru Tel.: (511)6309000 Fax: (511) 6309239

n) The description and dynamics of item 67 "Cumulative effect of accounting changes" are eliminated.

o) The description and dynamics of item 68 "Net Profit (Loss) for the Year" are amended as indicated below:

ITEM	:	68 NET PROFIT (LOSS) FOR THE YEAR
DESCRIPTION	:	It comprises the net result obtained by the company at the end of the year.
ACCOUNT	:	6801 NET RESULT FOR THE YEAR
DYNAMICS
DEBITS	:	- For the debit balances at the close of the year of the items comprising items 62 and 64. - For the transfer of the balance to account 3801.
CREDITS	:	- For the credit balances at the close of the year of item 62. - For the transfer of the debit balance to account 3802.

ANNEX B
PROVISIONS IN EFFECT FROM 1 JANUARY 2013
AMENDMENTS TO THE CHART OF ACCOUNTS FOR COMPANIES OF THE INSURANCE SYSTEM INSURANCE

I. CHAPTER I "GENERAL PROVISIONS" IS AMENDED, IN THE TERMS INDICATED BELOW:

a) Paragraph 2 of the title "A. Application" is amended as indicated below:

"2. Insurance and reinsurance companies must observe the laws and regulations in force, as well as the conceptual accounting framework in the application of this Chart of Accounts.”

Likewise, the financial statements of insurance and reinsurance companies, together with the notes to said financial statements, must be submitted to the Superintendency, as established in the forms included in this Plan and in the additional rules issued by the Superintendency.

b) Item 5 is added to the title “A. Application” as indicated below

“5. Companies are obliged to keep all accounting and administrative books generally required by applicable laws and regulations and also those determined by the Superintendency. Transactions recorded in the books must be supported by the corresponding supporting documentation, in order to comply with the rules established in the Commercial Code, General Corporations Law and other special laws on the matter.

Likewise, they must maintain transparent, concrete and individualized accounting of all their operations, applying in a comprehensive manner the rules and procedures established in this Chart of Accounts.

Companies must close their economic-accounting fiscal year as of 31 December each year.

Insurance companies must prepare monthly files of the basic financial statements and the documentation supporting them, also including the trial balance and the respective account analyses, which must be kept available to the Superintendency.

The basic financial statements comprise:

1) Statement of Financial Position

2) Statement of Comprehensive Income, comprised of:

i) Income Statement; and,

ii) Statement of Income and Other Comprehensive Income

3) Statement of Changes in Equity

4) Statement of Cash Flows

5) Notes to the financial statements“

c) Items 1, 5 and 6 of the title “B. Structure” are amended as indicated below:

“1. The Chart of Accounts is represented by the detail of the risks, Accounting Table, Chart of Accounts, Description and Dynamics, the Financial Statements and the corresponding notes. For the

Los Laureles No. 214 - Lima 27 - Peru Tel.: (511)6309000 Fax: (511) 6309239

preparation and presentation of financial information, the Conceptual Accounting Framework and these General Provisions must be considered

5. The third digit or monetary indicator has the following use:

Zero	(0) :	Integrating code, which comprises the total balances of accounts in national currency, foreign currencies and adjustable with constant update value
One	(1) :	Operations in National Currency
Two	(2) :	Operations in Foreign Currency, which also comprise those operations in national currency indexed to the exchange rate)
Three	(3) :	Operations subject to indexation (constant update value - VAC -)

6. Transactions with affiliated companies are indicated in the fourth position of each account, with the digit 8. The use of said digit is developed in the Conceptual Accounting Framework.”

d) The title “C. Reports” is amended as indicated below:

“1. Insurance and reinsurance companies shall submit the financial statements and annual information required by this Superintendency, within thirty (30) calendar days following the close of the fiscal year.

In accordance with articles 221° and 226° of the General Corporations Law, the report of the external auditors, together with the audited financial statements, corresponding to the close of the annual fiscal year, must be made available to the shareholders with due advance notice to be submitted to the General Shareholders' Meeting or equivalent body, for their approval. Likewise, in consideration of the aforementioned legal provisions, it must be considered that the results obtained in the fiscal year refer to the result of the year reported in the Income Statement (Form B-1).

In case of observations, these must be reported immediately to the Superintendency.

The date of approval of the financial statements by the General Shareholders' Meeting shall be subject to the deadlines established in the General Corporations Law. Companies must send a certified copy of the minutes of the General Shareholders' Meeting in which the approval of the financial statements of December of each year is recorded, within ten (10) calendar days following its holding.

2. Insurance and reinsurance companies shall submit the financial statements and monthly information required by this Superintendency, within fifteen (15) calendar days following the month to which the information corresponds, except as indicated in the previous item.

If the day of submission of the information is not a business day, the submission shall be made on the first following business day.

3. Insurance and reinsurance companies shall submit the monthly Trial Balance of balances for all digits used at the monetary indicator level, that is, at the integrating code level (0), operations in national currency (1), in foreign currency (2) and those subject to indexation (3).

Companies, when preparing their trial balance of balances, must observe the account structure provided in this plan. Said balance shall serve as the basis for the formulation of the basic financial statements, which together with the notes to the financial statements and complementary information, provide the necessary transparency on the economic and financial situation of insurance and reinsurance companies, allowing visualization of their returns and costs.

Los Laureles No. 214 - Lima 27 - Peru Tel.: (511)6309000 Fax: (511) 6309239

In the case of the Statement of Comprehensive Income, in accordance with IAS 1, the two-statement model has been chosen:

(a) Income Statement, showing the components of the result for the period; and,

(b) Statement of Income and Other Comprehensive Income, which begins with the result for the period and shows the components of Other Comprehensive Income.

4. Insurance and reinsurance companies must report their information using electronic transfers or other mechanisms provided by the Superintendency.

The Financial Statements and Trial Balance that insurance companies submit to the Superintendency must adhere to the following frequency and deadlines:

FINANCIAL STATEMENTS AND TRIAL BALANCE	FORM	FREQUENCY	MAXIMUM SUBMISSION DEADLINE
Statement of Financial Position	A	Monthly	In the case of monthly and quarterly information: 15 calendar days following the close. In the case of annual information: 30 calendar days following the close.
Statement of Income	B-1	Monthly	In the case of monthly and quarterly information: 15 calendar days following the close. In the case of annual information: 30 calendar days following the close.
Statement of Income and Other Comprehensive Income:	B-2	Monthly	In the case of monthly and quarterly information: 15 calendar days following the close. In the case of annual information: 30 calendar days following the close.
Statement of Cash Flows	C	Annual	30 calendar days following the close
Statement of Changes in Equity	D	Annual	30 calendar days following the close
Trial Balance of Balances		Monthly	15 calendar days following the close. In the case of annual information: 30 calendar days following the close.

5. The financial statements and other complementary information of monthly, quarterly, semi-annual and annual frequency must contain the signatures of the General Manager or whoever acts in their stead and that of the company's Certified Public Accountant. The semi-annual financial statements must also contain the signatures of two directors.

6. Insurance and reinsurance companies must publish the Statement of Financial Position and the Statement of Comprehensive Income, as of 31 December of each year, within seven (07) business days of approval by the General Shareholders' Meeting, in the Official Gazette and in another newspaper of wide circulation. The aforementioned publications must be made maintaining adequate proportions and on the same date and page of the respective newspaper. For publication purposes, the forms must correspond to the forms established in chapter V of this Chart of Accounts and must be presented comparatively with the previous year. Proof of its publication must be sent within ten (10) days after it is made.

7. The annual report must be available to shareholders, together with the pertinent supporting documentation, at least ten (10) business days before the holding of the General Shareholders' Meeting. Once the annual report is approved, the Board of Directors shall authorize the respective disclosure, which must be made within the period stipulated by the regulations on the matter.

The annual report must contain, at least:

a) The financial statements at the close of the fiscal year, which must include the notes to the financial statements.

b) The report of the External Audit Firm on the company's financial statements;

c) When applicable, the consolidated financial statements of the conglomerate, prepared in accordance with the rules established by the Superintendency of the Securities Market (formerly CONASEV). For this purpose, the conglomerate must consolidate its financial statements following the guidelines of International Accounting Standard No. 27 "Consolidated and Separate Financial Statements", considering that, as long as the accounting rules established by the Superintendency for the companies under its supervision and control are not modified, the accounting criteria that have a specific regulation issued by the Superintendency must not be standardized.

d) The report of the External Audit Firm on the consolidated financial statements of the conglomerate.

e) An exposition of the economic and financial situation of the company, including its financial projections, as well as a summarized evaluation of each of the most important events occurring in the period and subsequent events, so as to allow the shareholder to have a clear picture of the management.

f) Information on compliance with the Principles of Good Corporate Governance, which will be applicable to corporations issuing securities registered in the Public Registry of the Securities Market.

g) General description of the main characteristics of the entity's Comprehensive Risk Management.

h) Other information required in specific rules by this Superintendency.

The annual report will be sent to the Superintendency within thirty (30) calendar days following its approval by the General Shareholders' Meeting.

8. Insurance intermediaries and auxiliaries shall annually submit the trial balance of balances and the financial statements whose formats are incorporated in chapter V of the Chart of Accounts, within sixty (60) calendar days following the close of each fiscal year and, for those companies whose sum of revenues from accounts in item 57 "Revenues for services and others" exceeds 600 Tax Units (UIT), they must submit, within one hundred twenty (120) calendar days following the close of each fiscal year, the duly audited financial statements.

The information submitted must be signed by the legal representative and the accountant.

The submission of the trial balance of balances, the complementary information and the corresponding presentation deadlines shall be regulated by this Superintendency through specific rules."

e) The content of the title "Minimum Notes to the Financial Statements" is modified as follows:

"NOTES TO THE FINANCIAL STATEMENTS

The notes form part of the financial statements; therefore, the annual and quarterly financial statements must include their corresponding explanatory notes that reveal the accounting policies and the

Los Laureles No. 214 - Lima 27 - Peru Tel.: (511)6309000 Fax: (511) 6309239

facts or events that directly or indirectly affect the course of the company, as indicated below.

An entity need not provide a specific disclosure required by this Plan and/or the IFRS if the information is not material.

Depending on whether the information is annual or quarterly, companies shall adhere to the following:

A. ANNUAL FINANCIAL STATEMENTS

Below is a list of minimum information that insurance companies must include in the notes to their audited annual financial statements:

1. GENERAL INFORMATION ABOUT THE COMPANY

This note must indicate the name of the company, the type of company, the address and its legal form, the date of incorporation, the country where it is incorporated, the description of the nature of its operations and its main activities, and the name of the parent company or group.

2. BASIS OF PREPARATION

a) Statement of compliance

Statement that the Financial Statements have been prepared in accordance with the accounting standards issued by the Superintendency and the International Financial Reporting Standards.

b) Measurement bases

The financial statements shall be prepared and presented in accordance with the accounting criteria established in this Plan and, for matters not contemplated therein, the provisions of the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) and officially adopted in the country by the Accounting Standards Council shall apply, and, in those cases not contemplated by these, the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) or, supplementarily, the Generally Accepted Accounting Principles (GAAP) in force in the United States of America, issued by the Financial Accounting Standards Board (FASB), shall apply.

Likewise, the most significant estimates included in the financial statements must be indicated.

3. ACCOUNTING POLICIES AND VALUATION CRITERIA

The bases of preparation of the financial statements as well as the main accounting criteria applied must be disclosed, which must be consistent with the accounting framework and dynamics of this Plan. The minimum information to be disclosed through notes refers to the following concepts:

a. Changes in accounting policies

This note shall describe the changes in accounting policies and their accounting treatment in accordance with the provisions of this Chart of Accounts.

b. Accounting errors

Errors from previous periods shall be disclosed in accordance and their accounting treatment in accordance with the provisions of this Chart of Accounts.

c. Changes in accounting estimates

The company shall disclose the nature and amount of any change in an accounting estimate that has had effects in the current period, or that is expected to have effects in future periods, except for the disclosure of information on the effect on future periods, in the event that it is impracticable to estimate that effect.

If the amount of the effect on future periods is not disclosed because the estimate is impracticable, the entity shall disclose this fact.

d. Foreign currency transactions

The accounting treatment of foreign currency transactions must be disclosed.

e. Financial instruments

Los Laureles No. 214 - Lima 27 - Peru Tel.: (511)6309000 Fax: (511) 6309239

The following must be disclosed:

i. Recognition

ii. Derecognition of financial assets and liabilities

iii. Initial and subsequent valuation criteria

iv. Criteria for determining impaired assets

v. Determination of impairment losses, write-offs and reversal of impairment

vi. Classification of financial assets and liabilities

vii. Recognition of income and expenses from financial assets and liabilities

viii. Purchases and sales of financial assets through conventional contracts indicating the use of the trade date

ix. Offsetting of financial instruments The criteria applied for offsetting must be disclosed, in accordance with the requirements of IAS 32.

x. Derivative financial instruments for hedging The measurement basis of derivative financial instruments for hedging must be disclosed.

f. Accounts receivable from insurance operations (premiums)

The policies adopted by the company for the recognition of premiums and the measurement of the respective impairment must be disclosed.

g. Operations with reinsurers and co-insurers

The active and passive operations with reinsurers and co-insurers shall be disclosed, as well as the procedure for recording accounts receivable and payable to them. The policies adopted for the measurement of the respective impairment must also be specified.

h. Property, furniture and equipment

The criteria for initial recognition of items comprising the heading must be indicated, as well as the treatment of subsequent disbursements. Likewise, information must be provided about the subsequent recognition model followed by the company, including the depreciation method used, the useful lives or depreciation rates used and impairment losses, in accordance with IAS 16 and the accounting provisions established in this Chart of Accounts.

i. Investments in real estate

The criteria for initial recognition of items comprising the heading must be indicated, as well as the treatment of subsequent disbursements; and the subsequent measurement adopted by the company.

When pertinent, the significant methods and assumptions applied in determining the fair value of the investment property shall be disclosed, including a justification of the determination of fair value at market prices or other factors due to the nature of the property and lack of comparable market data.

The types of investment property and their purpose shall also be disclosed, as well as the contractual obligations for the acquisition, construction or development of investment property.

j. Non-current assets held for sale

The accounting policies and criteria for the initial recognition of non-current assets other than recovered assets, received in payment in kind and foreclosed, must be specified, in accordance with IFRS 5.

k. Intangibles

The criteria for the initial recognition of items comprising this line item shall be indicated. Likewise, it shall be reported that the subsequent recognition model followed by the company is the cost model. Similarly, the amortization rates used and impairment losses shall be disclosed. With respect to intangible assets with indefinite useful lives, the company shall disclose the disclosure requirements set out in IAS 38.

l. Goodwill

Los Laureles No. 214 - Lima 27 - Peru Tel.: (511)6309000 Fax: (511) 6309239

The accounting policies and criteria for the initial recognition of goodwill must be specified.

m. Impairment of non-financial assets The company must specify the policies and procedures used to determine whether any asset is impaired, in accordance with IAS 36.

n. Tax assets and liabilities The method used for the recognition and measurement of tax assets and liabilities and income tax shall be disclosed, as well as the offsetting criteria.

o. Leases The company shall indicate the treatment of finance lease transactions in which it acts as lessee. The policies and criteria applied shall be consistent with the provisions of IAS No. 17 "Leases".

p. Technical reserves The policy for the constitution of each type of technical reserve established in accordance with the regulations of the Superintendency shall be disclosed, as well as the parameters used for its estimation

q. Provisions, contingent liabilities and contingent assets Indicate the policy applied for the recognition of provisions, contingent liabilities and contingent assets, in accordance with IAS 37, unless expressly provided otherwise by the Superintendency.

r. Employee benefits The policy applied for the recognition of employee benefits shall be indicated, which include short-term benefits, post-employment benefits and termination benefits, as well as employee profit sharing.

s. Trust operations Aspects related to trust operations shall be disclosed, when the company acts as trustor, trustee or beneficiary, as well as compliance with the provisions of the regulations issued by this Superintendency on the matter.

t. Share-based payment transactions The policy applied for the recognition of share-based payments shall be disclosed, in accordance with IFRS 2.

u. Recognition of insurance and investment expenses and income The criteria adopted for the recognition of income from direct insurance premiums, coinsurance received and ceded, and reinsurance received and ceded, and from investments made by the company, as well as expenses related to insurance and investment activity, must be described.

v. Other Comprehensive Income The components of Other Comprehensive Income and the amount of income tax related to each component of Other Comprehensive Income shall be disclosed.

w. Statement of Changes in Equity The total comprehensive income for the period shall be presented in the Statement of Changes in Equity. Likewise, for each component of equity, a reconciliation between the carrying amounts at the beginning and at the end of the period shall be presented in said statement, disclosing separately the changes resulting from profit or loss and from each item of Other Comprehensive Income.

x. Statement of Cash Flows The method used for its preparation shall be disclosed. For the determination of cash and cash equivalents, the provisions of IAS 7 Statement of Cash Flows shall be applied. In this sense, cash and cash equivalents shall include cash on hand, as well as cash equivalents corresponding to short-term, highly liquid financial investments, easily

Los Laureles No. 214 - Lima 27 - Peru Tel.: (511)6309000 Fax: (511) 6309239

convertible into a determined amount of cash and subject to an insignificant risk of changes in value, whose maturity date does not exceed 90 days from the date of acquisition.

y. Investment in subsidiaries, associates and interests in joint ventures The criteria adopted for the recognition of investment in subsidiaries, associates and interests in joint ventures shall be disclosed, in accordance with the provisions of the conceptual framework.

z. Other accounting criteria Other accounting policies used that are relevant to the understanding of the financial statements shall be disclosed.

aa. Recent accounting pronouncements When an entity has not applied a standard or interpretation that has been issued but is not yet effective, it shall disclose a description of those pronouncements and their possible impact.

4. SPECIFIC NOTES

Each line item of the Statement of Financial Position, Statement of Comprehensive Income, Statement of Changes in Equity and Statement of Cash Flows shall contain a cross-reference to the corresponding notes. Such disclosures shall be made systematically.

5. ASSETS SUBJECT TO RESTRICTIONS

When the company holds assets whose ownership right is restricted, it must disclose this, clearly identifying the asset concerned, its carrying amount and the cause of the restriction.

6. EARNINGS PER SHARE

The company must present earnings (losses) per class of share, in accordance with IAS 33 "Earnings per Share".

7. FOREIGN CURRENCY POSITION

The balances for each of the foreign currencies in which it operates must be reported at the line item level; the net position in each of them being established by difference; proceeding to perform the accounting reconciliation, with the indication of the respective position (overbought or oversold), indicating, if applicable, the method used internally for foreign currency controls.

8. TAX SITUATION

This note must disclose the status of reviews of prior years by the tax authority, and the years pending review. Likewise, they must disclose the disclosure requirements established in IAS 12 "Income Taxes".

9. TRANSACTIONS WITH RELATED PARTIES

For the purposes of this note, related parties shall be understood as the natural or legal persons linked to the entity, as provided in article 202° of the General Law, regulated by the "Special rules on linkage and economic group" approved by SBS Resolution No. 445-2000 of 28 June 2000 and amendments thereto.

The relationships between controllers and subsidiaries shall be subject to disclosure regardless of whether transactions have occurred between said related parties.

The information to be disclosed, regarding the transactions carried out, shall be provided separately, for each of the following categories, if applicable:

Controller
Entities with joint control or significant influence over the entity
Subsidiaries
Associates
Joint ventures in which the entity is one of the participants
Key management personnel of the entity or of its controller
Other related (linked) parties

When transactions have occurred between related parties, the entity shall disclose the nature of the relationship with each party involved, as well as the information on the transactions (original amount, conditions, terms, guarantees granted or received, among others), outstanding balances and their effect on the results of the year.

The company shall disclose information on the remuneration and benefits received by key management personnel in total, considering all payments they receive. Likewise, it must disclose at least short-term employee benefits, post-employment benefits and share-based payments.

10. FINANCIAL INSTRUMENTS

The company shall disclose the following:

a. The classification categories of financial instruments shall be disclosed taking as reference the format suggested in Annex 1.

b. The objectives, policies and risk management processes, for which the following shall be disclosed:

i. Structure and organization of the risk management function or functions.

ii. The hedging and risk mitigation policies.

iii. The policies and procedures to avoid excessive risk concentrations.

iv. Risk measurement and reporting systems.

c. For each type of risk arising from financial instruments, the following shall be disclosed:

i. Credit Risk

1. Quantitative information on the exposure to the specific risk at the date of the financial statements.

2. Information on the credit quality of financial assets that are neither past due nor impaired.

3. The carrying amount of financial assets that would be past due or impaired if their terms had not been renegotiated.

4. For each class of financial assets that are past due or impaired:

a) Analysis of the assets whose impairment has been assessed individually, including the factors that the entity has considered in the analysis, indicating at least:

i. Carrying amount, without deducting provisions

ii. Amount of the impairment loss

b) The movement of the provisions constituted for credit risk, as well as the opening and closing balance

c) The amount of financial income from impaired (and past due) assets

d) The carrying amount of impaired financial assets written off:

i. Opening balance of the period

ii. Additions, distinguishing recoveries from other causes

iii. Recoveries, differentiating refinancings or restructurings, by collections and foreclosure

iv. Write-offs, distinguishing by forgiveness, statute of limitations and other causes

e) For past due but not impaired assets, and for those whose impairment assessment is individual:

i. Description of the guarantees and credit enhancements; and ,

ii. Estimate of fair value

ii. Liquidity risk

1. Financial liabilities shall be classified, by maturity terms, taking as reference the remaining periods at the date of the financial statements, based on the contractual maturity date.

For this purpose, the periods to be considered shall be:

a) Up to one month;

b) Between one and three months;

c) Between three months and one year;

d) Between one and five years;

e) More than five years.

The amounts must correspond to the agreed nominal amounts without discount, and may differ from the value presented in the statement of financial position.

If the amounts are variable, they must be presented using as reference the information available at the date of the financial statements.

2. A description shall be provided of how liquidity risk is managed. If the entity manages based on the expected maturities of financial instruments, an analysis of the expected maturities of financial assets and liabilities shall be included, and it shall report how such estimates are made and whether there are differences with the contractual periods.

iii. Market risk

1. A sensitivity analysis shall be included for each type of market risk to which it is exposed, and the effects it would have on net equity and on the result for the year, for each relevant risk variable, such as exchange rate, interest rate, prices of equity instruments, among others. Likewise, the methods and assumptions on which such information has been prepared shall be disclosed, and whether changes have arisen with respect to the previous year, and the reasons for such changes.

2. The company shall provide a sensitivity analysis for its entire business, but may provide different types of analysis for the different classes of financial instruments.

3. If the company prepares a sensitivity analysis, such as value at risk, that reflects the interdependencies between risk variables and uses it to manage financial risks, it may disclose this analysis instead of that indicated in items (1) and (2) above, in which case it shall additionally disclose:

a) An explanation of the method used to prepare the sensitivity analysis, including information on all relevant assumptions and parameters that have been taken;

b) An explanation of the objective of the method employed, as well as its limitations that would cause the information not to fully reflect the fair value of the financial assets and liabilities in question;

c) A description of the financial instruments whose market risks are managed using the VaR analysis.

4. When the sensitivity analyses disclosed in accordance with numerals (1), (2) and (3) above are not representative of the risk inherent in a financial instrument, the company shall report this fact, as well as the reason why such analyses lack representativeness. This could occur when:

a) A financial instrument contains terms and conditions whose effects are not evidenced from the sensitivity analysis performed.

b) The financial assets are illiquid.

c) The financial assets in which the entity has such a significant participation that, if it were to sell them in their entirety, it would do so at a premium or discount with respect to the quoted price for a smaller participation.

d. Risk concentrations

Information shall be disclosed on the risk concentrations of financial instruments that have similar characteristics and that may be affected similarly by economic or other changes. For this purpose, the following shall be included:

i. A description of the manner of determining risk concentrations and the amounts of each of them.

ii. The characteristics that identify each concentration, such as: geographic areas, types of counterparty, credit quality, currency, as well as other forms of concentration of

Los Laureles No. 214 - Lima 27 - Peru Tel.: (511)6309000 Fax: (511) 6309239

risks. The format model that companies may use as a reference for the disclosure of the information is attached in Annex 2.

e. Fair value

1. The fair value of financial instruments must be disclosed, regardless of whether for accounting purposes they are measured at such value.

2. Fair value measurement methods The different hierarchy levels used in determining fair value shall be indicated. For this purpose, the entity shall classify the fair value measurements made using a value hierarchy that reflects the relevance of the inputs used to carry out such measurements. The fair value hierarchy shall have the following levels:

a) Level 1: comprises instruments quoted in active markets, described in items a) and b) of article 11 of the Regulation on Classification and Valuation of Investments;

b) Level 2: comprises instruments quoted in non-active markets, described in item c) of article 11 of the Regulation on Classification and Valuation of Investments; and

c) Level 3: comprises unquoted instruments described in item d) of article 11 of the Regulation on Classification and Valuation of Investments.

3. Methodologies and assumptions used to determine fair value.

4. For each class of financial assets and liabilities, the methods and, when a measurement technique is used, the models and significant assumptions employed for the determination of fair value shall be reported, additionally indicating whether they include fully observable market data, or partially, or not supported by observable data.

5. Assets whose carrying amount is similar to fair value shall be disclosed, explaining such conclusion.

6. For available-for-sale assets, the amount of any gain or loss recognized in net equity during the year shall be disclosed, and the amount that has been transferred from equity and recognized as results for the year.

The format model that companies may use as a reference for the disclosure of the information is attached in Annex 3.

f. Compound financial instruments with embedded derivatives

The characteristics of the issue of compound financial instruments that incorporate embedded derivatives, whose values are interdependent, such as the issue of a convertible bond with a call option in favor of the issuing company, shall be disclosed.

g. Hedging operations

1. The derivative financial instruments that have been contracted for hedging purposes shall be disclosed in disaggregated form. The types of hedging shall also be broken down:

a) Fair value

b) Cash flows

c) Net investment in a foreign operation

2. For each of the types of hedging indicated above, a description of the hedged item and of the derivative financial instruments, as well as the fair values at the date of the statement of financial position.

3. The nature of the risks that have been hedged.

4. In the case of cash flow hedges, the following shall additionally be disclosed:

a) The periods in which they are expected to occur and the periods in which they are expected to be recognized in profit or loss for the period

b) The amount recognized in equity in the period

c) The amount that has been removed from equity and recognized in profit or loss for the period, indicating the affected line items.

Los Laureles No. 214 - Lima 27 - Peru Tel.: (511)6309000 Fax: (511) 6309239

5. In the case of hedges of highly probable forecast transactions, the corresponding amount that has been removed from equity in the period and that has been included in the initial measurement of the acquisition cost or of the carrying amount of the non-financial asset or liability shall be indicated, as well as any forecast transaction for which hedge accounting has previously been used and that is expected not to occur.

6. The following shall be presented in disaggregated form:

(a) In fair value hedges: the losses and gains of the hedging instrument and of the hedged item attributable to the hedged risk.

(b) In cash flow hedges and hedges of a net investment in a foreign operation: the gains or losses of the ineffective portion of the hedging instruments recognized in the profit and loss line items of the profit or loss for the period.

h. Reclassification

The amount of reclassifications between the various categories of financial instruments shall be disclosed, as well as the justification for such reclassifications and changes in measurement criteria.

i. Transfers of financial assets

If the entity has transferred assets and part or all of the asset has not been derecognized, the following shall be disclosed for each class of assets:

1. The nature of the assets

2. The nature of the risks and rewards to which the company is exposed

3. If the entity continues to recognize the assets in their entirety, the carrying amount and the associated liabilities.

4. When the entity continues to recognize, to the extent of its continuing involvement, the carrying amount of the original assets, the carrying amount of the assets and the associated liabilities.

11. INSURANCE CONTRACTS

In accordance with IFRS 4 Insurance Contracts, and in relation to the amounts recognized in the financial statements, companies shall disclose the following:

a. The accounting policies relating to insurance contracts and to the related assets, liabilities, expenses and income.

b. The recognized assets, liabilities, income and expenses arising from insurance contracts. If the insurer is a cedent, it shall also disclose:

i. the losses and gains recognized in profit or loss for the period for reinsurance ceded

ii. If it defers and amortizes losses and gains arising from purchases of reinsurance, it shall disclose the amortization for the period and the amounts that remain unamortized at the beginning and at the end of the same.

c. The procedure used to determine the assumptions that have a greater effect on the measurement of the recognized amounts.

d. The effect of changes in the assumptions used to measure assets and liabilities for insurance contracts, showing the effect of each significant change separately in the financial statements.

e. Reconciliations of the changes in liabilities and assets for reinsurance contracts and in the related acquisition costs.

f. Bases used in the liability adequacy test.

In relation to the nature and extent of the risks of insurance contracts, companies shall disclose:

a. The objectives, policies and processes for managing the risks arising from insurance contracts, as well as the methods used in such risk management.

b. Information on insurance risk, including:

i. Sensitivity to insurance risk, for which a suggested format model that companies may use for the disclosure of information is attached in annex 4.

ii. Concentrations of insurance risk, which includes the description of the criteria for the determination and/or grouping of risks, description of the characteristics and the effect

possible due to their exposure. For this purpose, a suggested model is attached in annex 5 of format, which companies may use for the disclosure of information.
iii. Claims received compared with previous estimates (or development of
claims).
c. Information about the exposure to market risk arising from embedded derivatives is an
insurance contract that is its host contract, when the insurer is not obliged to measure the embedded derivatives at fair value, nor has it chosen to do so. d. Investments on behalf of life insurance policyholders who bear the investment risk. e. The composition and valuation of such investments shall be disclosed, as well as the accounting treatment applied.

12. EQUITY

Net equity and the proposed appropriation of profits:

The following shall be disclosed for each class of shares:

1. The number of shares issued and their par value.

2. A reconciliation between the number of shares outstanding at the beginning and at the end of the period.

3. The rights, privileges and restrictions corresponding to each class of shares, including restrictions on the distribution of dividends and the reimbursement of capital.

4. Equity instruments whose issuance is reserved as a consequence of the existence of options or contracts for the sale of equity instruments, describing the conditions.

5. Dividends distributed during the year, and the amount of dividends proposed or agreed before the financial statements are formulated.

13. SUBSEQUENT EVENTS

Information must be disclosed about any event or occurrence that has had or may have a significant influence or effect on the development of operations or on the financial statements.

B. QUARTERLY FINANCIAL STATEMENTS

The notes to the quarterly financial statements corresponding to March, June and September shall be prepared following the criteria of IAS 34 "Interim Financial Reporting".

Companies must include a note referring to events or transactions that are significant for the understanding of the interim information presented. This note shall include events after the close and before the issuance of the financial statements.

The submission of the quarterly notes to the SBS is not applicable to companies, due to the presentation of said information to the Superintendency of the Securities Market.

II. CHAPTER III "ACCOUNTING TABLE AND CHART OF ACCOUNTS" IS AMENDED, IN THE TERMS INDICATED BELOW:

a) The name of the following accounts is amended and the sub-account is opened, as indicated below:

1209	Accumulated impairment of Accounts receivable for Insurance operations
1309	Accumulated impairment of Accounts Receivable for operations subject to credit risk
1409	Accumulated impairment of Accounts Receivable from reinsurers and co-insurers
1609	Accumulated impairment of Miscellaneous accounts receivable
1409.07	Accumulated impairment of technical reserves receivable from reinsurers

b) The following account and sub-account indicated below are created:

1707	Investments of contracts in which the policyholder assumes the investment risk

1707.01 Investments at fair value with changes in results

c) Account 1906 is created with the following name: 1906 Non-current assets held for sale

d) The name of account 1909 is amended and sub-account 1909.04 is added, as indicated below: 1909 Amortization, accumulated impairment of intangibles and provision for non-current assets held for sale. 1909.04 Provision for non-current assets held for sale.

e) The name of account 2106 is amended with the text indicated below: 2106 Liabilities from contracts in which the policyholder assumes the investment risk.

f) The following sub-accounts are created: 2109.01 Financial lease installments payable 2109.02 Miscellaneous 2909.08 Unearned income from contingent operations

g) The name of the following analytical accounts, corresponding to sub-account 2604.03 "Catastrophic earthquake reserve" is amended according to the text indicated: 2604.03.01 Priority borne by the company 2604.03.02 Excess not covered by the catastrophic XL contract

h) Account 3304 "Revaluations of affiliated companies" is eliminated

i) The name of sub-accounts 4605.05, 5609.06 and of analytical account 5608.09.06 is amended as indicated below: 4605.05 Valuation of investments 5609.06 Valuation of investments 5608.09.06 Valuation of investments

j) The following analytical accounts are created: 4605.05.03 Investments in real estate 5609.06.03 Investments in real estate

k) Sub-account 4609.07 is created with the following name: 4609.07 Provision for non-current assets held for sale.

III. CHAPTER IV "DESCRIPTION AND DYNAMICS" IS AMENDED, IN THE TERMS INDICATED BELOW:

a) The following debit and credit are added to the dynamics of accounts 1703, 1704, 1705 and 1706: DEBITS: - For the increase in the fair value of investments in real estate, if the fair value model is used. CREDITS: - For the decrease in the fair value of investments in real estate, if the fair value model is used.

b) The description of account 1707 as well as its dynamics is added, as indicated below:

Los Laureles Nº 214 - Lima 27 - Peru Tel.: (511)6309000 Fax: (511) 6309239

1707 INVESTMENTS OF CONTRACTS IN WHICH THE POLICYHOLDER ASSUMES THE INVESTMENT RISK

1707.01 Investments at fair value with changes in results

DESCRIPTION: Comprises the identification of the investments corresponding to life insurance contracts in which the policyholder assumes totally or partially the investment risk, maintaining the valuation criteria contemplated in the conceptual accounting framework for each of the categories.

DYNAMICS: Those applicable to accounts 1701 and 1702.

c) The description of account 1901 is amended as indicated below:

ACCOUNT: 1901 INTANGIBLE INVESTMENTS AND AMORTIZABLE EXPENSES 1901.01 Investments in Software 1901.02 Positive Goodwill - Mergers

DESCRIPTION: This account records intangible assets with finite useful life and indefinite useful life.

d) The description and dynamics of account 1906 are added as indicated below:

ACCOUNT: 1906 NON-CURRENT ASSETS HELD FOR SALE

DESCRIPTION: This account records non-current assets held for sale provided they meet the conditions to be classified as such in accordance with IFRS 5. The measurement of said assets must follow the guidelines of IFRS 5, and the valuation adjustments must be recorded in sub-account 4609.07 with a credit to sub-account 1909.04.

DYNAMICS

DEBITS: - For the net value of non-current assets held for sale.

CREDITS: - For the value recorded when the asset is sold.

e) The description of account 1909 is amended and the debit and credit indicated below are added:

DESCRIPTION: This account records accumulated amortization, as well as the impairment of intangible assets. Likewise, provisions for non-current assets held for sale are recorded.

DYNAMICS

DEBITS: - For the reversal of the provision for non-current assets held for sale that have been sold.

CREDITS: - For the provisions for non-current assets held for sale.

f) A third paragraph is added to the description of item 21 "Financial obligations" and the following debit and credit are added, as indicated below:

Additionally, it includes the portion of the premium of life insurance contracts in which the policyholder assumes the investment risk, which, because the corresponding obligation is not considered part of the technical reserves,

Los Laureles No. 214 - Lima 27 - Peru Tel.: (511)6309000 Fax: (511) 6309239

said portion of the premium must be recorded as a liability, to which the provisions of IAS 39 shall apply as a financial liability.

DYNAMICS: DEBITS: - For the termination of the contract - For the valuation of the obligation related to insurance contracts in which the policyholder assumes the investment risk. CREDITS: - For the amount of the premium to which the liability treatment is applied in life insurance contracts. - For the valuation of the obligation related to insurance contracts in which the policyholder assumes the investment risk.

g) The description and dynamics of account 2604 "Catastrophic risks" are amended, as indicated below:

DESCRIPTION: This account records the reserve intended to cover risks of uncertain frequency and catastrophic effects, calculated in accordance with the provisions issued by the Superintendency of Banking and Insurance.

The reserve is determined based on earthquake risk and its amount is made up of the retention or priority borne by the company, in accordance with the catastrophic excess of loss reinsurance contract, and by that part not covered by said contract.

DYNAMICS DEBITS: - For the decrease of the priority or of the part not covered by the catastrophic excess of loss contract. - For the application of the reserve upon the occurrence of a catastrophic event.

CREDITS: - For the recording of the retention or priority borne by the company. - For the recording of that part not covered by the catastrophic XL contract. - For the reinstatement of the reserve, upon its decrease due to the occurrence of a catastrophic event.

h) The description and dynamics of account 3304 are eliminated.

i) The following debit is added to the dynamics of subaccount 4605 "Financial charges":

DEBITS: - For decrease in the fair value of investment properties, if the fair value model is used.

j) The description of account 4609 is amended as indicated below and the following debit is added:

DESCRIPTION: This account records the adjustments to the provision for fluctuation of securities, the impairments of investment instruments, the depreciation of investments in real estate, the provisions arising from the granting of hedging mechanisms in trusts, the provisions for bankruptcy, dissolution, liquidation and null or negative equity of the companies issuing financial instruments, the provisions for credit risk of the TCHN and of

real estate loans for the acquisition of future goods and the provisions for non-current assets held for sale.

DYNAMICS
DEBITS
:

For the provision for non-current assets held for sale.

k) The following credit is added to the dynamics of subaccount 5609 "Miscellaneous financial income":

CREDITS
:

For increase in the fair value of investment properties, if
the fair value model is used.

IV. CHAPTER V "FINANCIAL STATEMENTS" IS AMENDED, IN THE TERMS INDICATED BELOW:

1. The name of Form A is amended to "Statement of Financial Position" and its content as indicated below:

a. In current assets, the item "Asset for technical reserves borne by reinsurers" is opened, after the item "Accounts receivable from reinsurers and co-insurers (net)".

b. In non-current assets, the item "Asset for technical reserves borne by reinsurers" is opened, before the item "Investments (net)".

c. In equity, the following amendments are made:

c.1 The following subdivisions of Accumulated Results are eliminated:

- Unrealized net gain from valuation of Available-for-Sale Investments

- Gain from application of the equity method

- Unrealized net loss from valuation of Available-for-Sale Investments

- Loss from application of the equity method

c.2 The name of the item "Unrealized Results" is changed to "Adjustments to Equity" and the following subdivisions are added:

- Unrealized net gain from valuation of Available-for-Sale Investments

- Gain from application of the equity method

- Unrealized net loss from valuation of Available-for-Sale Investments

- Loss from application of the equity method

- Other adjustments

2. The name of Form B is amended to "Statement of Comprehensive Income" and its structure in accordance with the formats contained in Annex 6.

3. The grouping rules of Form A and Form B of Chapter V "Financial Statements" are amended, as indicated below:

Los Laureles No. 214 - Lima 27 - Peru Tel.: (511)6309000 Fax: (511) 6309239

3.1 The grouping rules of Assets are amended, as indicated below:

Presentation in Form "A"	Grouping rules
Miscellaneous accounts receivable (net)	……..Except: 1601.02 and 1601.05
Total Current Assets	………+ subaccounts 1601.02 and 1601.05).
Investments in Real Estate (net)	1703 + 1704 + 1705 + 1706 + 1708.04 + 1708.05 + 1708.06 + 1709.02 + 1709.01.02 + 1709.01.03 + 1709.01.04 + 1709.01.06 + 1709.05.02
Assets for technical reserves ceded to reinsurers (Current assets)	2605 + 2705 + 2706
Assets for technical reserves ceded to reinsurers (Non-current assets)	2705 + 2706
Non-current assets held for sale (net)	1906 - 1909.04

3.2 The grouping rules for Liabilities are amended, as indicated below:

Presentation in Form "A"	Grouping rules
Technical reserves for claims	Item 26 except 2604 and except 2605
Technical reserves for premiums	Item 27 less 1903 and except 2705 and 2706

3.3 The grouping rules for Equity are amended, as indicated below:

Presentation in Form "A"	Grouping rules
Treasury shares	34
Equity adjustments
Net unrealized gain from valuation of available-for-sale investments	3801.03
Gain from application of the equity method	3801.04 and 3801.05
Net unrealized loss from valuation of available-for-sale investments	3802.02
Loss from application of the equity method	3802.04 and 3802.05
Other adjustments	35
Accumulated results
Accumulated profits	3801.01 and 3801.02
Accumulated losses	3802.01

Los Laureles Nº 214 - Lima 27 - Peru Tel.: (511)6309000 Fax: (511) 6309239

3.4 The grouping rules for the Income Statement are amended, as indicated below:

Income Statement	Grouping rules
Investment and Financial Expenses	Item 46 except 4609
Provisions for non-current assets held for sale	4609

4. The name of Form A applicable to Insurance Intermediaries and Auxiliaries is amended to "Statement of Financial Position" and its content, as indicated below:

a) In current assets, the title "Negotiable Securities (net)" is amended to "Financial Investments (net)".

b) In assets and liabilities, the items indicated below are eliminated:

b.1) 70 Contingent debtor accounts

b.2) 73 Contingent creditor accounts by contra

b.3) 71 Contingent debtor accounts by the opposite

b.4) 72 Contingent creditor accounts

5. The name of Form B is amended to "Income Statement" applicable to Insurance Intermediaries and Auxiliaries, as well as its content as indicated below:

a) The following items are eliminated:

a.1) "59 – 49 Result from inflation exposure"

a.2) "61 Losses from reduction to market value"

b) The title: "Result before participations, income tax and extraordinary items" is amended to "Result before income tax"

c) The following item is eliminated:

b.1) "63 Participations"

d) The title: "Result before extraordinary items" is eliminated

e) The following items are eliminated:

e.1) “66-65 Extraordinary Gains (Losses) Net”

e.2) “67 Cumulative effect of accounting changes”

6. The content of Form C “Statement of Cash Flows” is amended as indicated in annex 7.

7. The format of Form D “Statement of Changes in Equity” is amended according to the model contained in annex 8.

V. THE CONCEPTUAL ACCOUNTING FRAMEWORK IS AMENDED, IN THE TERMS INDICATED BELOW:

REGULATORY HIERARCHY

The financial statements of insurance system companies must be prepared and presented in accordance with the provisions established by the Superintendence of Banking, Insurance and AFP (SBS). Situations or operations not provided for in the Chart of Accounts for Insurance System Companies or other rules of the Superintendence shall be treated by applying the International Financial Reporting Standards (IFRS) officialized in the country by the Accounting Standards Council, and, in those cases not contemplated by these, the International Financial Reporting Standards (IFRS)

Los Laureles No. 214 - Lima 27 - Peru Tel.: (511)6309000 Fax: (511) 6309239

issued by the International Accounting Standards Board (IASB) or, subsidiarily, the Generally Accepted Accounting Principles (GAAP) in force in the United States of America, issued by the Financial Accounting Standards Board (FASB).

The use of the last two standards is applicable provided that they do not contravene the specific provisions issued by the Superintendence in its general rules, and therefore such situations must be brought to the prior knowledge of the Control Body.

The structure of the Chart of Accounts has, among other objectives, to know the company's operations in the local market, in the foreign market and the operations it carries out with its own economic group (affiliates) and to know the results of its operations for each of the insurance risks (or lines) in which it operates.

The definition of Economic Group, for purposes of the use of digit 8 in the fourth position of each account, shall be understood as that established by the rules issued by the Superintendence in the Special rules on linkage and economic group.

In the case of Insurance Intermediaries and Auxiliaries, situations or operations not provided for in the Chart of Accounts for Insurance System Companies or other rules of the Superintendence shall be treated by applying the International Financial Reporting Standards (IFRS) or the International Financial Reporting Standards for SMEs (IFRS for SMEs), in both cases, officialized in the country by the Accounting Standards Council, according to the framework established by said Council.

ACCOUNTING POLICIES MANUAL

Accounting policies must be included in an Accounting Policies Manual, which must be updated at least annually or when there is a relevant change. Accounting policies must include the aspects indicated in the preceding paragraph. The Accounting Policies Manual must be approved by the company's Board of Directors and be available to the Superintendence.

QUALITATIVE CHARACTERISTICS OF FINANCIAL INFORMATION

Financial statements must provide information that complies with the following characteristics:

Understandability.- An essential quality of the information provided in financial statements is that it be readily understandable by users. For this purpose, users are assumed to have a reasonable knowledge of economic activities and the business world, as well as of their accounting, and also the willingness to study the information with reasonable diligence. However, information about complex matters that should be included in the financial statements because of its relevance to the needs of users for economic decision-making must not be excluded merely on the grounds that it may be too difficult for certain users to understand.

Relevance.- To be useful, information must be relevant to the decision-making needs of users. Information possesses the quality of relevance when it influences the economic decisions of those who use it, helping them to evaluate past, present or future events, or to confirm or correct evaluations carried out previously.

Frequently, information about the financial position and past activity is used as a basis for predicting the financial position and future activity, as well as other matters in which users are directly interested, such as the payment of dividends and salaries, the evolution of share prices, or the entity's ability to meet its debts when they fall due. Information does not need to be explicitly in the form of prospective data to have predictive value. However, the ability to make predictions from the financial statements can be enhanced by the way in which information about past transactions and other events is presented.

Materiality or Relative Importance.- Information is of relative importance when its omission or its misstatement can influence the economic decisions that users make on the basis of the financial statements. Relative importance depends on the magnitude of the item or of the assessment error, as the case may be, judged in the particular circumstances of the omission or error. That is, the relative

Los Laureles Nº 214 - Lima 27 - Perú Tel.: (511)6309000 Fax: (511) 6309239

importance provides a threshold or cut-off point, rather than being a primary qualitative characteristic that information must have to be useful.

Reliability.- The usefulness of information is determined by its reliability, the quality that ensures it is free from significant error and bias, in order to properly present the transactions and events that occurred in the company during the period for which it reports.

Comparability.- Users must be able to compare the financial statements of an entity over time, in order to identify trends in financial position and performance. The measurement and presentation of the financial effect of similar transactions and other events must be carried out in a consistent manner throughout the company, over time.

An important implication of the qualitative characteristic of comparability is that users must be informed of the accounting policies used in the preparation of the financial statements, of any change in such policies, and of the effects of such changes. Users need to be able to identify differences between the accounting policies used for similar transactions and other events by the same entity from one period to another, and also by different entities.

BASIS OF VALUATION

The processes of assigning monetary value to each item comprising the financial statements must take into account the following definitions:

a) Amortized cost.- It is the initial measurement of a financial asset or a financial liability less repayments of principal, plus or minus the accumulated amortization - calculated using the effective interest method - of any difference between the initial amount and the repayment value at maturity, and less any impairment loss or uncollectibility (recognized directly or through the use of a specific account).

b) Historical cost or cost.- Assets are recorded at the amount of cash and other items paid, or at the fair value of the consideration given in exchange at the time of acquisition. Liabilities are recorded at the amount of the proceeds received in exchange for incurring the obligation or, in some circumstances (for example, in the case of income taxes), at the amounts of cash and cash equivalents expected to be paid to settle the corresponding liability in the ordinary course of operations.

c) Necessary costs of sale: These are essential incremental expenses directly attributable to the sale of an asset that the entity would not have incurred had it not decided to sell. These costs include the legal costs necessary to transfer ownership of the asset, sales commissions, and any other costs incurred before the legal transfer of the asset, but do not include financial expenses and taxes on profits, nor those incurred for prior studies and analyses.

d) Recoverable amount.- It is the higher of fair value less costs of sale and value in use.

e) Value in use: It is the present value of the estimated cash flows of an asset or a cash-generating unit. The entity will estimate those cash flows in accordance with current conditions, discounting them at an appropriate discount rate for the asset in question, for which the entity's average financing rate for a term equal to the useful life of the element will be taken into consideration, adjusted for the risks that market participants perceive for said asset. When the distribution of cash flows is subject to uncertainty, this will be considered by assigning probabilities to the different cash flow estimates; in any case, the estimates must take into account any other assumption that market participants would consider in their estimates, such as the degree of liquidity inherent in the asset being valued.

f) Carrying amount of an asset: It is the amount at which the asset is recognized in the balance sheet once its depreciation and accumulated amortization, as well as any value adjustment, have been deducted.

g) Net realizable value.- It is the amount that can be obtained from the disposal of an asset in the market, in the ordinary course of business, deducting the estimated costs to carry it out.

Los Laureles Nº 214 - Lima 27 - Perú Tel.: (511)6309000 Fax: (511) 6309239

h) Present value. Assets are carried at present value, discounting the future net cash inflows expected to be generated by the item in the ordinary course of operations. Liabilities are carried at present value, discounting the future net cash outflows expected to be required to settle the debts, in the ordinary course of operations.

i) Fair value.- It is the amount for which an asset could be exchanged or a liability settled between parties who are knowledgeable and willing, in an arm's length transaction.

j) Residual value of an asset: It is the amount that the entity could obtain at the present time for its sale, or other form of disposal, once the estimated costs to achieve it have been deducted, but taking into account that the asset would have reached the age and other conditions expected to have at the end of its useful life.

k) Effective interest rate.- It is the discount rate that exactly equates the estimated cash flows to be received or paid over the expected life of the financial instrument (or, where appropriate, over a shorter period) with the net carrying amount of the financial asset or financial liability. The effective interest rate method is a method of calculating the amortized cost of a financial asset or financial liability (or of a group of financial assets or financial liabilities) and of recognizing income or expense over the relevant period.

ELEMENTS OF THE FINANCIAL STATEMENTS

The elements that measure financial position are: assets, liabilities and equity, and those that measure performance for the period are income and expenses.

Asset

It is a resource controlled by the entity as a result of past events, from which the entity expects to obtain future economic benefits.

Liability

It is a present obligation of the company, arising from past events, the settlement of which, and in order to discharge it, the entity expects to give up resources that embody economic benefits.

It is necessary to distinguish between a present obligation and a future commitment or undertaking. The decision to acquire assets in the future does not, in itself, give rise to the creation of a liability. Normally, a liability arises only when the asset has been received or the entity enters into an irrevocable agreement to acquire the good or service.

Certain liabilities can only be measured using a high degree of estimation. Thus, when a provision involves a present obligation that meets the rest of the definition, it is a liability, even if its amount must be estimated.

Equity

It is the residual interest in the assets after deducting liabilities. It includes contributions from owners, unless the definition of a liability is met. It also includes undistributed results of the current and prior periods, reserves and revaluation adjustments in accordance with accounting standards.

Income

They are increases in economic benefits, produced throughout the accounting period, in the form of inflows or increases in the value of assets, or as decreases in obligations, which result in increases in net equity, and are not related to contributions from owners to this equity.

The definition of income includes both revenue from ordinary activities and gains. Revenue from ordinary activities arises in the course of the company's ordinary activities, and corresponds to a varied range of denominations. Gains are other items that, while meeting the definition of income, may or may not arise from the ordinary activities carried out by the entity.

SUPERINTENDENCY OF BANKING, INSURANCE AND AFP Republic of Peru

Los Laureles Nº 214 - Lima 27 - Peru Tel.: (511)6309000 Fax: (511) 6309239

Expenses

They are decreases in economic benefits, produced throughout the accounting period, in the form of outflows or decreases in the value of assets, or of the birth or increase of liabilities, which result in a decrease in net equity, and are not related to distributions to the owners of this equity.

The definition of expenses includes both expenses arising in the company's ordinary activities and losses. Expenses from ordinary activities arise in the course of the company's ordinary activities, and correspond to a varied range of denominations. Losses are other items that, while meeting the definition of expenses, may or may not arise from the ordinary activities carried out by the entity.

RECOGNITION OF THE ELEMENTS OF THE FINANCIAL STATEMENTS

The elements of the financial statements, in addition to meeting the definitions described above, must meet the following conditions to be recognized in the financial statements:

a) It is probable that the economic benefits associated with the item will enter or leave the entity, based on evidence available when preparing the financial statements.

b) The item has a value or cost that can be reliably estimated.

FUNDAMENTAL ASSUMPTIONS

Accrual basis.- In order to complete and prepare accounting information in a useful manner, the use of accruals on an accrual basis is required. This procedure gives recognition to all income earned and all losses incurred in each accounting period, regardless of the cash flow between the company and other parties.

Accounting records must reflect income and expenses receivable and payable, respectively. Financial statements prepared on this basis provide useful information to users for making economic decisions.

Going concern.- It is assumed that the company will continue developing its activities within the foreseeable future and that, therefore, it is necessary to divide its life into accounting periods in order to determine the results of each period and measure the amounts of assets, liabilities and equity at the end of each period. If the entity has the intention or need to liquidate its businesses, the financial statements must be prepared on a different basis, which must be disclosed in notes.

GENERAL RECOGNITION CRITERIA

Recording.- Transactions and events are accounted for when the requirements to be recognized as elements of the financial statements are met and provided they can be reliably measured.

Substance over form.- Transactions and events must be recorded and presented in the financial statements according to their economic substance and not their legal form.

No offsetting.- The balances of the items of assets and liabilities, as well as income and expenses, are not offset, unless required by the Superintendency and/or IFRS.

Recognition of income and expenses.- For the allocation of income and expenses, the accrual principle will be applied, unless other criteria must be applied due to the application of the Superintendency's rules contained in this Plan.

SPECIFIC ACCOUNTING PROVISIONS

Based on the regulatory precedence established in this Conceptual Accounting Framework, the specific accounting provisions applicable to insurance companies are indicated.

Los Laureles Nº 214 - Lima 27 - Peru Tel.: (511)6309000 Fax: (511) 6309239

In the case of insurance intermediaries and auxiliaries, the specific accounting standards are regulated in the specific regulations applicable to their function.

IFRS 4 – INSURANCE CONTRACT

IFRS 4 is the first issued by the IASB that contains provisions applicable to insurance operations and corresponds to Phase I of the standard applicable to such activities, so in this phase the objective is:

(a) To make limited improvements to the accounting for insurance contracts, until the Board completes the second phase of its project on insurance contracts.

(b) To require disclosure of information about such contracts.

The IFRS does not specifically distinguish whether the issuer of insurance contracts is an insurance company; however, for purposes of applying the Chart of Accounts, insurance companies under the supervision of the Superintendency of Banking, Insurance and AFP (SBS) are considered as such.

This standard is applicable both to insurance contracts and to reinsurance contracts, assumed and ceded.

a) Definition of insurance contract

An insurance contract is one in which one party (the insurer) accepts a significant insurance risk from the other party (the policyholder), agreeing to compensate the policyholder, insured and/or beneficiary if an uncertain future event (the insured event) adversely affects them. This definition applies strictly for accounting and financial information presentation purposes.

For such purposes, the following must be understood:

Insurance risk: which corresponds to the risk, other than financial risk, transferred by the holder of a contract to the issuer.
Financial risk: which corresponds to the risk of a possible future change in financial variables (interest rate, price of a financial instrument, price of a quoted commodity, exchange rate, price or interest index, credit rating or indices) or non-financial variables, that is not specific to one of the parties to the contract.
Significant risk: if, and only if, an insured event could cause the insurer to pay significant additional benefits (including claim handling and assessment costs) in any scenario, even if the insured event were extremely unlikely or even if the expected present value (that is, probability-weighted) of the contingent cash flows were a small proportion of the expected present value of all remaining contractual cash flows.

From the foregoing, it follows that what is relevant in an insurance contract for it to be considered as such under this IFRS is that it covers an insurance risk and that this risk is significant. The determination of whether an insurance risk is significant or not is relevant and applicable in the evaluation of life insurance contracts, mainly in their modern modalities, because there are contracts that rather represent an “investment contract” to which IAS 39 must be applied and classified as financial liabilities, since the insurer becomes the administrator of such funds, accounted for at fair value or amortized cost, as applicable, and therefore IFRS 4 does not apply to them.

The definition of significant risk is per contract and not per portfolio, since liabilities are calculated on an individual basis, that is, the mathematical life reserve is calculated policy by policy.

The analysis of compliance with the definition of significant risk to determine that the contracts are insurance contracts must be documented.

b) Unbundling of the deposit component

Once it has been determined that the contracts are insurance contracts, it must be analyzed whether or not to unbundle the deposit component that life insurance contracts could contain, in the form of amounts representing savings of the policyholders.

Los Laureles No. 214 - Lima 27 - Peru Tel.: (511)6309000 Fax: (511) 6309239

The IFRS provides that in Phase I, unbundling of the deposit component is required when the company does not record it as a liability. In this sense, the recording of mathematical life reserves and, in general, of technical reserves, includes all obligations to the policyholders of the insurance, including such components, so separation is not required.

Unbundling mandatorily applies to financial reinsurance operations in which the return of the deposit component is not reflected in the financial statements.

In the specific case of life insurance in which the policyholder assumes all or part of the investment risk, separation will only be mandatory if the corresponding technical reserves do not recognize all of the insurance companies' obligations arising from the contract. In that case, the portion of the premium corresponding to the investment will be recorded as a liability, to which the provisions of IAS 39 will apply as a financial liability, and the related assets must be identified. For such purposes, accounts 1707 and 2106 will be used.

c) Embedded derivatives

The IFRS provides that embedded derivatives of an insurance contract must be separated. In an insurance contract, these are considered to include, among others, the surrender right in life insurance, if the value varies based on changes in financial variables or other variables that are not part of the insurance contract.

In this sense, if the payment associated with the embedded derivative depends on the occurrence of the insured event (survival or death), as occurs in life insurance, the embedded derivative does not require separation. Nor do surrender rights for a fixed amount or a fixed amount plus a financial return related to market conditions require separation.

In the case of surrender rights referenced to indices or prices of certain assets or to index rates higher than market rates, separation is required, with IAS 39 applying in this case, with respect to financial derivatives, accounted for at fair value.

d) Discretionary participation components

They correspond to additional guarantees, such as technical, financial or technical-financial returns granted to the policyholder, but it is up to the insurer to decide their amount or the date of their granting.

When the aforementioned components are recognized through the calculation of technical reserves, they do not require separate valuation. Profit sharing will not require separation.

e) Reserve for catastrophic and uncertain loss risks

It is the technical reserve constituted as a liability by companies to face the catastrophic risks covered under the fire and allied lines, loss of profit and engineering lines. According to the provisions of the SBS, a catastrophic risk is defined as that arising from the occurrence of two or more losses caused by the same natural event whose intensity is abnormal, specifically: earthquakes, seaquakes, tsunamis, rains, floods, storms, volcanic eruptions, the El Niño phenomenon and conflagration.

Law No. 26702 provides that the reserve for catastrophic and uncertain loss risks corresponds to one of the technical reserves that insurance companies must maintain.

The reserve is determined based on the probable maximum loss and the expected maximum loss of the portfolio of assets insured against earthquake risk, and its amount is made up of the retention or priority borne by the company, in accordance with the catastrophic excess of loss reinsurance contract, and by the part not covered by said contract.

The accounting record must affect accounts 4203 and 2604.

f) Liability adequacy test

As long as the valuation regime for obligations assumed in insurance contracts is not established, which will correspond to phase II of IFRS 4, it is generally considered that insurance companies that constitute their technical reserves in accordance with the provisions of the SBS comply with the minimum requirements demanded in the liability adequacy test.

Los Laureles Nº 214 - Lima 27 - Peru Tel.: (511)6309000 Fax: (511) 6309239

The technical reserves provided by the General Law, in addition to the catastrophic and uncertain loss risk reserve dealt with in the previous subsection, are the following:

i. Reserve for claims pending settlement and/or payment. Insurance companies must record as a liability in their accounting the entire estimate of claims when they are reported by policyholders, insured parties and/or beneficiaries, which make up the technical reserve for claims. The SBS has regulated specific aspects of the quantification of this Reserve, and may consider, in addition to case-by-case valuation, the use of global statistical methods. Claims may be: a) in the process of settlement, or b) may be settled and pending payment. Likewise, those claims that, being settled, are disputed by policyholders, insured parties or beneficiaries, as well as those affected by a dispute resolution or litigation mechanism before the Judiciary, must also be included in this technical reserve. This technical reserve cannot be reduced by the value of claim recoveries, which are recorded in memorandum accounts, recognizing income only when their transfer is made. The recording of claims must affect the corresponding accounts under item 42 and accounts 2601 or 2603. In the case of claims borne by reinsurers, the recording must affect account 2605 and item 52. On the other hand, the proportion of the total cost of claims borne by reinsurers calculated in accordance with the reinsurance contracts must be maintained as “Reported Claims of Ceded Premiums” (account 2605), provided that the claims reported by the corresponding insured parties form part of the technical reserve for claims. Once the insurance company pays the claim, the balance receivable from the reinsurer must form part of the accounts receivable from reinsurers referred to in item 14. This technical reserve must also consider claim settlement expenses, which must be estimated for an amount sufficient to cover the company's expenses necessary for the total settlement of claims, considering the settlement expenses external to the company, when claims adjusters participate, as well as the expenses associated with the internal or direct settlement carried out by the company, which must be included in the claims reserve for both direct insurance and accepted reinsurance.

ii. Reserve for claims incurred but not reported. The reserve for claims incurred but not reported, a component of the technical reserve mentioned in the previous letter, has the purpose of covering the cost of claims incurred as of its calculation date but that have not yet been reported to the companies. In this sense, it represents the estimated amount of claims incurred before the close of the financial information and not reported as of that date. It is a technical reserve of mandatory constitution for all insurance risks, with the exception of insurance in the form of a life annuity. The calculation methodology established by the SBS is based mainly on global statistical methods when they can be applicable, supported by data from historical claims experience. Its accounting record must affect accounts 4206 and 2602.

iii. Reserve for risks in force (RRC). The RRC is intended to cover the obligations arising from premiums corresponding to general lines insurance (including accident and health risks) and life insurance (individual and short-term collective with an annual or shorter term) for the period of validity not expired as of the date of its constitution. This reserve must be calculated, with the frequency established for each case, as the result of the sum of two components:

Los Laureles No. 214 - Lima 27 - Peru Tel.: (511)6309000 Fax: (511) 6309239

a) The Unearned Premium Reserve (UPR), whose purpose is to support the obligations of insurance contracts that remain in force at the close of the calculation period and is made up of the in-force premiums of the insured portfolio pending to be earned;

b) The Premium Deficiency Reserve (PDR), intended to complement the former, which is constituted when the unearned premium reserve is insufficient to cover the estimated risks corresponding to the unexpired coverage period of the policies at the calculation date.

The corresponding calculation methodology is determined by the SBS.

The accounting record of the unearned premium reserve must affect item 41 and account 2701 or 2702, in the case of reserves for premiums of insurance and reinsurance assumed, and item 52 and account 2705 in the case of reinsurance ceded.

In the case of the premium deficiency reserve, the accounting record must affect item 41 and account 2707.

iv. Technical reserves for insurance associated with the Private Pension System applicable to disability, survivorship and funeral expenses insurance and to retirement insurance.

They correspond to the obligations arising from the insurance that must be contracted within the framework of the Private Pension System. It has two components:

a) That obligation related to disability and survivorship insurance, and funeral expenses, applicable to members who suffer a claim during the term of the previsional insurance contract.

b) That obligation related to retirement insurance, once the member opts for one of the retirement schemes provided by the corresponding legislation.

The SBS establishes the calculation methodology for these technical reserves, which includes related expenses.

The accounting record affects items 42 and account 2601 or 2602, and item 52 and account 2605 in the case of technical reserves borne by reinsurers.

The aforementioned provisions are applicable to the complementary work risk insurance (SCTR), since they correspond to disability, survivorship, and funeral expenses benefits, applicable to insured persons who suffer a claim during the insurance coverage and who perform work at risk, according to the provisions issued by the SBS.

v. Life mathematical reserve for long-term insurance, applicable both to individual life insurance and to group life insurance, term and whole life.

This reserve corresponds to the value of the obligations for the insurance subscribed by the insurance company, including internal management expenses, net of the obligations of the policyholder.

The SBS establishes the specific methodology in general rules.

In the cases of contracts in which it has been established that the investment risk will be borne by the policyholder or insured, the reserve will be calculated according to the methodology established by the SBS.

The accounting record affects items 41 and accounts 2703 and 2704, and for the reserve borne by reinsurers, items 52 and account 2706.

g) Presentation of reinsurance assets in the Financial Statements

Insurance liabilities (technical reserves) must be presented in the financial statements without offsetting them against related reinsurance assets (the portion of technical reserves borne by the reinsurer). Reinsurance assets must form part of the assets in the financial statements. They must also be presented in said statements until the corresponding obligations have been settled, cancelled or expired.

In the case of the Catastrophic and Uncertain Loss Reserve, companies shall adhere to the provisions established by the Superintendency.

h) Fronting

Los Laureles No. 214 - Lima 27 - Peru Tel.: (511)6309000 Fax: (511) 6309239

“Fronting” insurance contracts will continue to be recorded as insurance contracts.

i) Reinsurance

The subscription of a reinsurance contract as cedent determines the recognition of a charge to results for ceded premiums using item 40, with credit to the corresponding account of item 24. Claims receivable from reinsurers, which correspond to the technical reserve for claims for ceded premiums, must not reduce the liabilities for claims payable to insureds, but must be recognized as assets in the financial statements. The SBS has established that although said items form part of the accounting item of claims payable to insureds (account 2601), they do not decrease said accounts, because they are separated (account 2605), which facilitates their identification. In this way, their reclassification as an asset is permitted within the framework of the provisions of IFRS 4 on “Insurance Contracts”.

Once the claim has been assessed and settled by the insurance company, the portion to be recovered from the reinsurer must be transferred from account 2605 to the corresponding accounts of item 14.

When an insurance company subscribes a reinsurance contract as reinsurer, it must recognize a credit to results for income from premiums received using accounts 5003 and/or 5004, with charge to the corresponding account of item 14. Claims payable to the cedent must be recorded as a liability in account 2603 with charge to results (account 4204 and/or 4205).

Premiums for non-proportional reinsurance will be recorded in item 19 as a prepaid expense, and once the period is earned, the corresponding part will be recorded in account 4001.

No offsets should be made between accounts receivable and payable for reinsurance contracts, unless this is permitted by an SBS provision.

The balances receivable from reinsurers, recorded under item 14, will be subject to evaluation to determine the existence of impairment, subject to the specific provisions established by the Superintendency in general rules.

j) Impairment of assets representing ceded reinsurance

The technical reserves borne by reinsurers for ceded reinsurance correspond to reinsurance assets, which are subject to impairment when there is objective evidence that the insurance company (the cedent) will not receive payment from the reinsurer corresponding to the ceded reinsurance, based on the terms of the reinsurance contract, and this can be measured reliably.

There are indications of impairment in the following cases:

Reinsurance contracts with reinsurers that are in unsafe practice, according to SBS rules, with a duration exceeding 12 months.
Contracts that do not have the cover note signed by the reinsurance broker and the lead reinsurer, at least 30 days from the start of their validity.

When the indications of impairment become objective evidence, the corresponding impairment must be recorded in a corrective account.

k) Policy acquisition costs

Companies that had been deferring policy acquisition costs for life insurance may continue to do so, considering that the amortization method should be consistently applied from year to year.

l) Income from direct insurance, reinsurance, and coinsurance premiums

Although it is not a topic addressed by IFRS 4, and in accordance with the constitution of technical reserves, premiums corresponding to insurance coverages granted in the year are recognized as income from ordinary operations of the respective year, with the expense for the adjustment of the corresponding technical premium reserve being recorded in parallel.

It comprises the premiums corresponding to the insurance policies issued, as well as the premiums for accepted reinsurance according to the reinsurance contracts signed and the premiums for coinsurance received.

SUPERINTENDENCY OF BANKING, INSURANCE AND AFP Republic of Peru

Los Laureles No. 214 - Lima 27 - Peru Tel.: (511)6309000 Fax: (511) 6309239

In general terms, the accounting record of premium income must include the entire premium corresponding to the contracted period according to the policy and coincide with the start of coverage, according to current regulations. For the purposes of recording income, the payment method of the premium should not be considered. In the case of automatic renewals, the record must be made when they enter a policy issuance system.

Specific cases are regulated by the Superintendency.

Cancellations and refunds of premiums, commissions, and claims must affect the results of the year.

IAS 39 – FINANCIAL INSTRUMENTS – RECOGNITION AND MEASUREMENT

The main concepts of IAS 39 correspond to:

Financial instrument: is any contract or transaction that gives rise to a financial asset in one entity and a financial liability or equity instrument in another entity.

Financial asset: is any asset that is:

a) Cash

b) An equity instrument of another entity

c) A contractual right to:

i. Receive cash or another financial asset from a third party.

ii. Exchange financial assets or liabilities with a third party under potentially favorable conditions.

d) A contract that may be or will be settled with the entity's own equity instruments issued by the entity, which:

i. If it is not a derivative, obliges or may oblige the entity to receive a variable number of its own equity instruments.

ii. If it is a derivative, it cannot be or will not be settled by a fixed price for a fixed number of its own equity instruments.

Financial liability: is any liability that involves:

a) A contractual obligation to:

i. Deliver cash, or another financial asset to a third party.

ii. Exchange financial assets or liabilities with a third party under potentially unfavorable conditions.

b) A contract that may be or will be settled with the entity's own equity instruments issued by the entity, which:

i. If it is not a derivative, obliges or may oblige the entity to deliver a variable number of its own equity instruments.

ii. If it is a derivative, it cannot be or will not be settled by a fixed price for a fixed number of its own equity instruments.

Equity instrument: is any contract that evidences, or reflects, a residual interest in the assets of the entity that issues it after deducting all its liabilities.

On this basis, the SBS has considered establishing the following guidelines:

A) FINANCIAL INVESTMENTS

The SBS has established four categories for the recording and valuation of financial investments. These categories have been determined based on the provisions of IAS 39 “Financial Instruments: Recognition and Measurement”, IAS 27 “Consolidated and Separate Financial Statements”, IAS 28 “Investments in Associates” and IAS 31 “Interests in Joint Ventures”. Likewise, the provisions on impairment of investment instruments established in the corresponding IFRS apply, as well as the treatment of goodwill (mercantile surplus) established in IFRS 3 “Business Combinations”, with the criteria contained in IAS 32 “Financial Instruments: Presentation”, IAS 21 “The Effects of Changes in Foreign Exchange Rates” and IFRS 7 “Financial Instruments: Disclosures” in force in Peru also being applicable.

Therefore, the aforementioned rules are applicable insofar as they do not conflict with the provisions of this Conceptual Accounting Framework and other rules issued by the Superintendency.

Below is a summary of the rules issued by the SBS that apply to financial investments, the development of which is found in the relevant rules:

I. Classification categories

1. Investments at fair value through profit or loss: comprises investment instruments intended to be traded in the near future for the generation of short-term gains, having been designated from the moment of their initial accounting recognition to be accounted for at fair value through profit or loss. The instruments in this category must have a market price quoted in an active market whose fair value can be reliably estimated. The relevant regulations specify the instruments that cannot be considered in this category.

Likewise, other investment instruments expressly designated by the SBS by rule shall be considered.

The accounting treatment is subject to the following:

a. Initial accounting recognition is made at the fair value corresponding to the transaction price, and must not include transaction costs, such costs being recorded as expenses.

b. After initial recognition, valuation shall be made at fair value, such that when it exceeds the carrying amount, a gain from fluctuation in values shall be recognized under item 56, and otherwise, a loss shall be recognized under item 46.

c. In the case of debt instruments, prior to fair value measurement, companies must accounting-wise update the amortized cost by applying the effective interest rate methodology, and from the amortized cost obtained, gains and losses from changes in fair value must be recognized.

d. The exchange difference of the instruments shall be recognized in the results of the year, affecting item 56 or item 46.

2. Available-for-sale investments: comprises investment instruments that are not classified as "investments at fair value through profit or loss," "held-to-maturity investments," or "investments in subsidiaries, associates and interests in joint ventures," and others expressly designated by rule.

The accounting treatment is subject to the following:

a. Initial accounting recognition is made at the fair value corresponding to the transaction price, and must include transaction costs directly attributable to the acquisition of such investments.

b. After initial recognition, valuation shall be made at fair value. The gain or loss arising from the change in the fair value of the instrument shall be recognized in other comprehensive income until its sale or realization, at which time the accumulated gain or loss must be reclassified from the unrealized gain or loss (account 3801 or 3802) to the results of the year, under items 46 or 56 in the case of a loss or gain, respectively.

d. The accounting recognition of the valuation of these investments must be made for the net valuation effect of the portfolio, and the use of accounts 3801 and 3802 will depend on the balance it shows. In this regard, companies must determine whether it is a gain or loss before making the accounting recognition in order to use the corresponding accounts.

e. In the case of debt instruments, prior to fair value measurement, companies must accounting-wise update the amortized cost by applying the effective interest rate methodology, and from the amortized cost obtained, gains and losses from the change to fair value must be recognized.

Los Laureles No. 214 - Lima 27 - Peru Tel.: (511)6309000 Fax: (511) 6309239

f. In the case of equity instruments that do not have a quotation and whose fair value cannot be reliably determined, they shall be valued at cost. As soon as a reliable fair value is available, the measurement shall be at fair value, following the provisions relating to fair value recognition.

g. Gains or losses from exchange differences related to the amortized cost of debt instruments shall affect the results of the year (items 46 or 56), provided that they are not instruments used for hedging purposes. Whereas in the case of equity instruments, they shall be recognized in equity accounts (item 35), provided that they are not hedging operations.

h. The impairment in the value of debt instruments shall determine the following: 1) If the instrument has a gain recorded in Other Comprehensive Income, due to fair value measurement, said gain shall be reversed against the value of the instrument, and the impairment of the asset shall also be recorded affecting item 46 against account 1109 or 1709; and 2) If the instrument has an unrealized loss recorded in Other Comprehensive Income, due to fair value measurement, said loss shall be transferred to profit or loss, affecting item 46 against item 38, and the pertinent impairment shall also be recorded, affecting item 46 against accounts 1109 or 1709. The reversal of the impairment shall affect account 5609 against accounts 1109 or 1709. In the case of impairment of equity instruments, the treatment shall be similar to that mentioned in the preceding paragraph, with the difference that the impairment shall not affect accounts 1109 or 1709, but shall be transferred to item 46. In the case of the value of an unlisted equity instrument, the amount of the impairment loss shall be the difference between the carrying amount of the financial asset and the present value of the expected future cash flows, discounted at the market rate of return for similar assets, affecting items 1109 or 1709, with item 46 as the counterpart.

i. Impairment losses affecting equity instruments may not be reversed through profit or loss for the year, but shall be reversed through Other Comprehensive Income. In the case of equity instruments measured at cost, impairment losses may not be reversed. In the case of debt instruments, losses shall be reversed through profit or loss for the year, provided that the increase in the fair value of said instrument can be verifiably and objectively associated with a favorable event occurring after the loss.

j. If due to various circumstances an instrument must be accounted for at cost or amortized cost instead of at its fair value, the fair value carrying amount of the instrument at that date shall become its new cost or amortized cost, as the case may be. Any result from that instrument that had previously been recognized directly in equity shall be accounted for in accordance with the pertinent provisions in the title "Changes in classification category."

3. Held-to-maturity investments: comprises debt instruments, with fixed or determinable payments, acquired or reclassified by the company with the intention of holding them until maturity, for which the necessary financial capacity must be available, and such capacity must be evaluated annually. Instruments that are intended to be held for an indefinite period and those issued by entities of the company's economic group, among others, may not be classified in this category.

The accounting treatment is subject to the following:

a. The initial accounting record is made at fair value corresponding to the transaction price, and must include transaction costs that are directly attributable to the acquisition of said investments.

b. After initial recognition, held-to-maturity investments shall be measured at amortized cost using the effective interest rate method.

c. The increase or decrease in the fair value of instruments classified in this category shall not affect the company's profit or loss. It shall be affected when the instrument is derecognized, affecting items 11 or 17, or when it has been impaired, using item 46.

d. Gains or losses from exchange differences shall affect profit or loss for the year (items 46 or 56), provided that they are not hedging transactions.

Los Laureles No. 214 - Lima 27 - Peru Tel.: (511)6309000 Fax: (511) 6309239

e. The impairment loss is calculated as the difference between its carrying amount (amortized cost) at the time the impairment is determined and the present value of future cash flows discounted at the original effective interest rate (purchase IRR) if it is a fixed-rate instrument, or the effective interest rate in force for the period (the rate at the date to which the financial statements refer), determined according to the contract, if it is a variable-rate instrument.

f. The impairment in the value of the instruments shall affect accounts 1109 or 1709, with item 46 as the counterpart. The reversal of the impairment shall affect account 5609 against accounts 1109 or 1709.

4. Investments in subsidiaries, associates and interests in joint ventures: comprises equity instruments acquired for the purpose of participating in equity and having control in accordance with the Special Rules on Linkage and Economic Group issued by the SBS, joint control as indicated in IAS 31 "Interests in Joint Ventures" and/or holding significant influence in other entities taking into consideration the provisions of IAS 28.

The accounting treatment is subject to the following:

1) Initial recognition

a. Investments recorded in this category shall be initially accounted for at fair value using account 1708, applying the equity method.

b. The difference between the cost of the investment and the investor's portion of the fair value of the identifiable net assets, liabilities and contingent liabilities of the investee shall be accounted for as follows:

b.1 If the acquisition cost is greater, goodwill shall be generated, which shall be recorded as investments (account 1708) if it is an acquisition of investments, or a business combination, in which the absorbing entity presents separate financial statements.

b.2 In the event that the acquisition cost is lower (badwill), the difference shall be included as income for the determination of the investor's share in the result of the subsidiary, associate or joint venture interests in the period in which the investment is acquired.

2) Subsequent recognition

a. If the book value of the investment increases or decreases, account 1708 and items 46 or 56 shall be affected if it is a loss or a gain, respectively, by the recognition of the portion corresponding to the company in the result for the year obtained by the entity in which the investment has been made, after the acquisition date. Likewise, the variations suffered by the proportional interest in the investee, as a consequence of changes in Other Comprehensive Income of the investee, for example due to the revaluation of fixed assets or the valuation of available-for-sale investments, the portion corresponding to the insurance company shall be recognized in Other Comprehensive Income and accumulated in equity account 3801 if it is a gain or 3802 if it is a loss.

b. Distributions received from the investment made shall reduce the book value of the investment, affecting account 1708.

c. In accordance with IAS 28, gains and losses from "upstream" and "downstream" transactions between the investor and the subsidiary or associate shall be recognized in the investor's financial information only to the extent of the interests of other investors in the subsidiary or associate that are unrelated to the investor. With respect to transactions between a venturer and a joint venture, the guidelines established in IAS 31 shall be observed.

Los Laureles No. 214 - Lima 27 - Peru Tel.: (511)6309000 Fax: (511) 6309239

3) Impairment losses and reversal

a. Impairment of the instruments shall directly affect their book value, that is, item 17, with item 46 as the counterpart. The impairment loss may be reversed by directly affecting item 17 and with item 56 as the counterpart.

b. When it is identified that one or more of the investments in subsidiaries, associates and joint venture interests have suffered an impairment of their value, this shall correspond to the difference between the book value and the recoverable amount of the investment, following the guidelines of IAS 36. The book amount of the investment shall be reduced until it reaches its recoverable amount. The impairment loss shall be recognized immediately in the result for the year.

4) Gains and/or losses from exchange differences

These investments are affected by exchange differences in application of the provisions of IAS 21, that is, when the investments in subsidiaries, associates and/or joint venture interests have a functional currency different from that of the insurer. In this sense, exchange differences arising on a monetary item that forms part of the net investment in a foreign operation of the company in accordance with the provisions of IAS 21 shall be recognized in Other Comprehensive Income and accumulated in account 3502. Subsequently, they shall be reclassified to the result for the year when the foreign operation is disposed of, affecting items 56 or 46 as appropriate for a gain or loss, respectively.

II. Impairment

a. Companies must assess quarterly whether there is evidence of impairment of the value of investment instruments, based on the objective existence of impairment as a consequence of an event that has occurred after the initial recognition of the investment instrument and that the event causing the loss has an impact on the future cash flows of the instrument that can be reliably estimated.

b. Companies shall assess the evidence of impairment in accordance with the provisions of the Regulation for the Classification and Valuation of Investments of Insurance Companies.

c. When, in the opinion of the Superintendency, there is any distortion in the calculation of impairment, the company shall be required to justify the calculations made.

III. Date of accounting record and negotiation

a. The accounting record is made on the basis of the negotiation date, that is, the date on which the reciprocal obligations are assumed that must be consummated within the term established by the regulations and customs of the market in which the operation is carried out.

b. In the initial accounting record of the investments, they shall be recorded at fair value, which shall correspond to the transaction price, unless proven otherwise.

c. If at the time of acquisition the investment instrument incorporates accrued interest pending payment by the issuer, a premium or a discount, these must be incorporated in the initial recognition of the investment. Likewise, when dividends come from net profits obtained before the acquisition of the instruments, they shall be deducted from their cost.

d. The charges and credits for the payment or collection of purchases or sales, as appropriate, shall be made on the date of settlement and compensation resulting from the negotiation of the investment instruments, under the modality of delivery of the instruments in exchange for the receipt of cash according to the terms agreed in the transaction.

e. In the case of having made several purchases of the instrument, the average cost shall be used for equity instruments, and the specific cost for each purchase operation for debt instruments.

f. The accounting policy for the sale of debt instruments must consider the FIFO method.

IV. Valuation at fair value of investment instruments

Fair value is associated with the value observed in market transactions under "normal" situations and mutual independence; likewise, fair value will take into account the credit quality of the instrument. In this regard, the general criteria for determining fair value are as follows:

Los Laureles No. 214 - Lima 27 - Peru Tel.: (511)6309000 Fax: (511) 6309239

a. When the instruments are quoted in active markets, fair value is determined by the price observed in those markets, which must be readily and regularly available through a centralized negotiation mechanism and reflect current market transactions occurring regularly between parties acting in a situation of mutual independence. In the case of equity instruments, the market price must be the closing price, and in the case of debt instruments, the market price must be the "bid" price, that is, the purchase price representing firm bids.

b. If the observed quotation does not refer to the financial instrument as a whole, but there is an active market for its components, fair value will be determined on the basis of the relevant market prices of those components.

c. In the case of instruments quoted in inactive markets, fair value is determined using a valuation technique or models that uses market data to the greatest extent possible and minimizes the use of data provided by the company. A market is considered inactive when it does not have sufficient quotations from freely accessible price sources for a period of no less than 30 calendar days.

d. In the case of unquoted instruments, fair value will be determined using valuation techniques or models.

Valuation techniques include the use of recent market transactions between interested and duly informed parties acting under conditions of mutual independence, if available.

Companies must have adequate valuation methodologies and techniques that allow obtaining the fair value of such instruments, which must incorporate all the factors that market participants would consider to establish a market price and be consistent with accepted economic methodologies for setting prices of investment instruments. The models must be periodically calibrated and changes incorporated into the models must be validated and documented. Such methodologies and models must observe the guidelines issued by the SBS through generally applicable rules.

For those instruments not quoted in an active market that are included in the Price Vector, that source of information will be taken into account. Likewise, at the request of the company, the SBS may define as valid certain valuations provided by entities that provide asset valuation services or price provider companies.

The use of techniques other than the price vector will empower the SBS to request adjustments to those models that in its judgment do not meet minimum requirements of technical robustness or that are based on insufficient market information, and it may require the hiring of a company that provides asset valuation services with recognized experience for the estimation of market prices of certain investment instruments. The models must be previously approved by the company's Board of Directors and must be available to the SBS.

Equity instruments that do not have prices quoted in active markets and whose fair value cannot be reliably estimated must be measured at cost. Such instruments must be recorded in the Available for Sale category.

V. Interest, dividends and other adjustments

a. Whatever the category in which the debt instruments are classified, the value adjustments made by re-adjustment factors, as well as the interest calculated according to the effective interest rate method, must be recognized in the result for the year. This method includes interest from the application of the nominal interest rate (coupon rate) as well as the amortization of any difference between the initial amount and the redemption value at the maturity of the instrument (premium or discount), a calculation that is made at each information presentation date. This interest will be recognized in items 11 or 17 against accounts 4605 and 5609. Subsequently, if applicable, it is compared with the fair value of the instrument in each valuation period. This comparison depends on the category in which the instrument is classified.

b. Dividends will be recognized when the company's right to receive payment is established.

Los Laureles No. 214 - Lima 27 - Peru Tel.: (511)6309000 Fax: (511) 6309239

c. Dividends received in shares must be recognized at an acquisition cost of zero, and the average unit cost of the share (not the total) must be modified, and subsequent valuation will be recorded according to the category of the instrument.

VI. Changes in classification category

a. The company is prohibited from reclassifying an investment instrument from the Investments category to "Fair Value with Changes in Results" or into it, except in the case of an equity instrument that ceases to have market quotations and for which it is not possible to obtain a reliable estimate of its fair value; in this case, the instrument will remain valued according to what was calculated in its last fair value adjustment, adjusted for impairments, when applicable, and must be reclassified to the "available-for-sale investments" category. Exceptionally, those investment instruments classified as investments at fair value with changes in results that: i) are delivered as collateral; and, ii) are reported or transferred through a repurchase operation or repurchase agreement, which represent a secured loan; must be reclassified to available for sale. Once said operations are completed, the referred instruments must be reclassified to their initial category, transferring the unrealized results to the results of the year.

b. "Investments to maturity" cannot be taken to another category, unless as a result of a change in the financial capacity to maintain an investment, the classification as held to maturity ceases to be appropriate; in this case it will be reclassified as "investment available for sale" and measured at fair value; the difference between its book value and fair value will be accounted for in accordance with the valuation criteria for said investment category.

c. If it were appropriate to account for an investment at amortized cost, instead of at its fair value, due to a change in the financial capacity of the company or when the period in which companies cannot classify as investment to maturity (established in the SBS regulation) has elapsed, the book amount of the fair value of the investment instrument on that date will become its new amortized cost, as the case may be. Any previous result of that instrument, which had previously been recognized in Other Comprehensive Income, will be accounted for as follows:

a) In the case of an investment instrument with a fixed maturity, the gain or loss will be taken to the results of the year over the remaining life of the investment held to maturity, using the effective interest rate method. Any difference between the new amortized cost and the amount at maturity will also be amortized over the remaining life of the investment instrument using the effective interest rate method, similarly to the amortization of a premium or discount. If the investment instrument subsequently suffers an impairment in value, any gain or loss that had been recognized in Other Comprehensive Income will be transferred and recognized in the results of the period.

b) In the case of an investment instrument that does not have a fixed maturity, the gain or loss will remain in equity until the investment instrument is sold or otherwise disposed of, at which time it will be recognized in the results of the period. If the investment instrument subsequently suffers an impairment of value, any previous result that had been recognized in Other Comprehensive Income will be transferred and recognized in the results of the period.

Companies that make category changes for the purpose of hiding losses and/or showing gains, or any use that the Superintendency considers inappropriate, will be prohibited from distributing dividends as provided in article 354° of the General Law.

VII. Sale or transfer of investments to maturity

The sale, transfer or reclassification of an instrument classified in this category before its maturity does not contradict the intention and capacity of the company to maintain them until their term, in any of the following circumstances:

a. They occur on a date very close to maturity, that is, less than 03 months from maturity, such that changes in market rates would not have a significant effect on fair value, or when 10% or less of the principal of the investment remains to be amortized according to the amortization plan of the investment instrument;

Los Laureles No. 214 - Lima 27 - Peru Tel.: (511)6309000 Fax: (511) 6309239

b. They respond to isolated, uncontrollable or unexpected events, such as: the existence of financial difficulties of the issuer, a significant deterioration of the solvency or important variations in the credit risk of the issuer; changes in legislation or regulation; or other external events that could not have been foreseen at the time of the initial classification.

Nor does it contradict the intention and capacity of the company to maintain until maturity those investment instruments classified as investments to maturity, when said instruments are delivered as collateral, are transferred through a repurchase agreement of the same or are delivered in loan under the condition of return of an identical instrument, provided that, in all these cases, the company continues with the intention and remains contractually and financially in a position to maintain the investment until maturity.

In any of the cases described, the company must maintain information on each of the sales or transfers, which must be sent to the SBS and with the information that it requests.

B) TREATMENT FOR DERIVATIVE FINANCIAL PRODUCTS

Derivative financial products are instruments that meet three characteristics: i) their value changes in response to changes in a certain interest rate, in the price of a financial instrument, in the price of quoted raw materials, in the exchange rate, in the price index or interest rate, in a credit rating or index, or based on another variable, assuming that, in the case of a non-financial variable, it is not specific to one of the parties to the contract, ii) it requires initially a very small or null net investment compared to other contracts that respond similarly to changes in market variables, and, iii) it is settled on a future date.

Insurance companies may contract financial derivative products for hedging purposes, and may only trade financial derivative products for trading when they are investments in combined financial instruments that contain embedded derivatives.

The accounting treatment of financial derivative products shall adhere to the provisions set forth below, which incorporate the essential aspects of International Accounting Standard (IAS) No. 39 "Financial Instruments: Recognition and Measurement" in force in Peru. Consequently, said IAS and its Application Guidance are applicable, insofar as they do not conflict with the treatment set forth below.

Classification of Financial Derivative Products

Initially, financial derivative products must be classified into one of the following two categories:

(a) Financial derivative products for trading; or,

(b) Financial derivative products for accounting hedging purposes.

Initial recognition

All financial derivative products must be recorded at their fair value in the Statement of Financial Position, on the trade or contract date.

Simultaneously, they must be recorded in accounts 8005 "Rights from Financial Derivative Products" and 8203 "Obligations from Financial Derivative Products", as applicable, at their nominal or par value. The recording shall be made per contract. All contracts denominated in foreign currency must be recorded at the spot exchange rate. When a contract involves two currencies other than the national currency, it shall be treated as a purchase or a sale depending on the position (long or short, respectively) in the currency in which the agreed nominal amount is expressed.

Subsequent recognition and measurement

(a) Financial derivative products for trading

Subsequently, changes in the fair value of financial derivative products for trading shall be recorded in the subaccounts of the income and expense accounts, 5607.01 "Income from Financial Derivative Products for Trading", and 4607.01 "Expenses from Financial Derivative Products for Trading", with the corresponding offsetting entries in accounts 1605.01 "Financial Derivative Products for Trading" or 2005.01 "Financial Derivative Products for Trading", as applicable to income or expense, respectively.

Los Laureles No. 214 - Lima 27 - Peru Tel.: (511)6309000 Fax: (511) 6309239

Gains and losses from exchange differences shall be recorded in analytical accounts 5609.03.05 and 4605.03.05, respectively.

(b) Financial derivative products for accounting hedging purposes

Subsequently, changes in the fair value of financial derivative products for hedging purposes shall be recorded depending on the type of accounting hedge. Accounting hedges can be of two types:

1. Fair value hedge

2. Cash flow hedge

3. Hedges of net investment in foreign operations

1. Fair value hedges

In a fair value accounting hedge, both the financial derivative product and the hedged item are measured and recognized at fair value, affecting the income and expense accounts, recorded as follows:

i) Gains or losses from changes in the fair value of the financial derivative product are recognized in the results of the period, recorded in analytical accounts 5607.02.01 and 4607.02.01, with the corresponding offsetting entries in analytical accounts 1605.02.01 and 2005.02.01, as applicable to income or expense, respectively.

ii) The gain or loss on the attributable hedged item, which is a financial asset or liability, from changes in fair value, shall be recognized in the results of the period, recording the adjustments in analytical accounts 5607.03.01 and 4607.03.01, with the corresponding offsetting entries in the corresponding asset and liability accounts of the hedged items.

iii) Under this accounting method, the general rule of affecting the adjustments of a financial derivative product is not changed, but the accounting record of those asset or liability items that were not recognized at fair value is changed.

The gain or loss from exchange differences of financial derivative products shall be recorded in analytical accounts 5609.03.06 and 4605.03.06, respectively.

Fair Value Hedges for Interest Rate Risk of a Portfolio (Macro-hedges)

In a fair value hedge that qualifies as a macro-hedge, the treatment shall be as follows:

i) The fair value adjustments of the financial derivative product shall be recognized as gains or losses recorded in analytical accounts 5607.02.03 and 4607.02.03, with the corresponding offsetting entries in analytical accounts 1605.02.03 and 2005.02.03, as applicable to income or expense, respectively.

ii) The gain or loss on the attributable hedged item, from changes in fair value, shall be recognized in the results of the period, recording the adjustments in analytical accounts 5607.03.02 and 4607.03.02, with the corresponding offsetting entries in accounts 1605.03 and 2005.03, respectively.

The gain or loss from exchange differences of financial derivative products shall be recorded in analytical accounts 5609.03.06 and 4605.03.06, respectively.

2. Cash Flow Hedges

A properly designated, documented, and highly effective cash flow accounting hedge shall be accounted for as follows:

i) The effective portion of the fair value adjustments of the derivative financial product is recognized in Other Comprehensive Income and accumulated in equity account 3504 "Unrealized results from cash flow hedges" with the analytical accounts 1605.02.02 and 2005.02.02 named "Cash flow hedges" as counterpart, as applicable to a gain or a loss, respectively. Such adjustment shall correspond to the lower value, in absolute terms, between: a) the valuation of the derivative financial products, accumulated since the inception of the hedge; and, b) the cumulative change since the inception of the hedge in the fair value of the expected cash flows of the hedged item.

Los Laureles No. 214 - Lima 27 - Peru Tel.: (511)6309000 Fax: (511) 6309239

ii) The ineffective portion of the derivative financial product shall be recognized in income and expenses, analytical accounts 4607.02.02 and 5607.02.02 named "Cash Flow Hedges", with the analytical accounts 1605.02.02 and 2005.02.02 named "Cash flow hedges" as counterpart, as applicable to a gain or a loss, respectively.

Thus, cash flow hedge accounting affects the accounting treatment of the derivative financial product but not of the hedged item.

The gains and losses recognized in Other Comprehensive Income and accumulated in equity account 3504 shall be reclassified from equity to profit or loss as follows:

a) If the hedge of a forecast transaction results in a financial asset or liability, the loss or gain recognized in Other Comprehensive Income shall be reclassified from equity to profit or loss in the same period or periods during which the hedged forecast cash flows affect the profit or loss for the year. If there is evidence that part or all of the amount recognized in equity will not be recovered, the amount not expected to be recovered shall be recognized in the profit or loss for the year.

b) If the hedge of a forecast transaction results in a non-financial asset or liability, the loss or gain recognized in other comprehensive income shall be derecognized and included in the cost of acquisition of the non-financial asset or liability.

c) In the case of cash flow hedges other than those indicated in a) and b), the amounts that were recognized in Other Comprehensive Income shall be reclassified from equity to profit or loss in the same period or periods during which the hedged forecast cash flows affect the profit or loss for the year.

The gain or loss from exchange differences of derivative financial products that are part of a cash flow hedge shall be recorded in analytical accounts 5609.03.06 and 4605.03.06, respectively.

3. Hedge of a net investment in a foreign operation

The definitions of foreign operation and net investment in a foreign operation are the same as those indicated in IAS 21 "The Effects of Changes in Foreign Exchange Rates". Hedges of a net investment in a foreign operation, including the hedge of a monetary item that is accounted for as part of a net investment, shall be accounted for similarly to cash flow hedges.

4. Prospective discontinuation of hedge accounting

Upon discontinuation of hedge accounting, the following treatment shall be followed, on a prospective basis:

Fair value hedge

a) The amount of the adjustment resulting from accounting for hedged items that are accounted for at amortized cost at fair value shall be amortized against profit or loss for the year following the effective interest rate method, recalculated at the date on which the amortization begins.

b) Exceptionally, in the case of a hedge of the fair value exposure to interest rate risk, when amortization using the effective interest rate is impracticable, amortization shall be performed on a straight-line basis.

Cash flow hedge

a) If the hedging product matures, is sold, settled or exercised, or the hedge ceases to meet the requirements to be accounted for as a hedge, the accumulated gain or loss of the hedging instrument that has been recognized in Other Comprehensive Income shall continue separately in equity until the forecast transaction takes place. When this occurs, the criteria indicated in a), b) and c) of section 2 on cash flow hedging, indicated above, shall be followed.

b) If the forecast transaction is not expected to occur, the gain or loss accounted for in equity accounts shall be recognized in the profit or loss for the year.

Los Laureles No. 214 - Lima 27 - Peru Tel.: (511)6309000 Fax: (511) 6309239

c) If the company revokes the designation, the gain or loss accounted for in equity accounts shall be maintained until the forecast transaction occurs. When this happens, it shall be accounted for in accordance with the criteria indicated in a), b) and c) of section 2 on cash flow hedging, indicated above. If the transaction is not expected to occur, the accumulated result in equity accounts shall be recognized directly in the profit or loss for the year.

Complex financial instruments: They can be of two types:

a) Combined financial instruments: They are contracts that simultaneously include a principal contract different from a derivative together with a financial derivative, called an embedded derivative, which is not individually transferable and which has the effect that some of the cash flows of the hybrid contract vary in the same way as it would if considered in isolation.

b) Compound financial instruments: These are contracts that, for their issuer, simultaneously create a financial liability and an equity instrument, such as a convertible bond that grants the holder of the compound instrument the right to convert it into equity instruments of the issuing entity. Compound financial instruments for the issuer are hybrid financial instruments for the acquiring entity.

C) ACCOUNTS RECEIVABLE FROM INSURANCE CONTRACTS

This category includes accounts receivable arising from insurance, co-insurance and reinsurance operations, as well as other receivables whose collection is of a determined or determinable amount, which are not traded in an active market and which are different from those classified in the other asset categories, such as accounts receivable from insurance operations, accounts receivable from reinsurers and co-insurers, and miscellaneous accounts receivable. Assets that do not allow substantial recovery of the entire initial investment, due to circumstances other than their credit impairment, are not included.

No offsetting should be made between accounts receivable and payable from reinsurance and/or co-insurance contracts, unless there is an offsetting agreement or commitment that permits it.

Failure to pay according to the schedule established in the Payment Agreement that supports the payment of premiums results in the suspension of insurance coverage. During the suspension period, companies must keep the corresponding technical reserves constituted. Termination of the contract prior to the end of its term determines the reversal of unpaid unearned premiums as well as the corresponding technical reserves.

Premiums receivable:

1) The calculation base is the amount of the commercial premium, which does not consider the corresponding tax. The date from which impairment is determined is the date that initiates the default according to SBS regulations.

2) Unpaid premiums with an age equal to or greater than ninety (90) days must be provisioned for their full amount.

3) Unpaid premiums with an age equal to or greater than sixty (60) days shall be provisioned applying a coefficient of at least 50%.

4) Premiums claimed judicially: shall be provisioned individually based on the circumstances of each case.

5) For the purposes of calculating impairment, companies must consider the entire outstanding amount payable, even if the payment term has not yet expired.

6) Gains or losses shall be recognized in profit or loss for the period when the asset is derecognized or has become impaired, and through the amortization process.

7) Impairment shall be recognized through a valuation account (provision) charged to profit or loss.

Accounts receivable from reinsurance and co-insurance:

1) Accounts maintained without movement for periods equal to or greater than six (6) months must be provisioned for fifty percent (50%) of the amount of the individual debtor items or the net debtor balance, as applicable.

Los Laureles No. 214 - Lima 27 - Peru Tel.: (511)6309000 Fax: (511) 6309239

2) Those maintained without movement for periods equal to or greater than twelve (12) months must be provisioned for one hundred percent (100%) of the amount of the individual debtor items or the net debtor balance, as applicable.

3) The provision corresponding to automatic reinsurance contracts shall be made for the net debtor balance of the respective current account with each reinsurer. In the case of facultative reinsurance contracts, excess of loss, catastrophic risks and other types of contracts other than automatic reinsurance contracts, the provision shall be made for the amount of the individual items that prove to be uncollectible. In both cases, the terms established in the preceding subparagraphs shall apply.

4) Impairment shall be recognized through a valuation account (provision) charged to profit or loss.

Companies must evaluate the situations described below, which could determine confirmation of non-compliance with the obligation by reinsurers:

a) Express denial of payment of the claim by the reinsurer and/or co-insurer with an age equal to or greater than six (6) months, counted from the date they become aware of the final adjustment of the claim.

b) Litigation in judicial and arbitration proceedings with reinsurers and/or co-insurers for collection of rights arising from the reinsurance contract, when there is objective evidence of a negative outcome for the company.

c) Balances receivable from inactive current accounts with reinsurers, with an age greater than twenty-four (24) months.

If the situations described above are confirmed, the company must directly impair the receivable item charged to profit or loss.

Accounts Receivable from operations subject to credit risk

The determination of impairment shall be subject to the provisions applicable to financial system companies in the corresponding regulations, and a valuation account that accumulates the impairment must be used for its recording.

Other loans and receivables:

The determination of impairment is subject to the provisions of IAS 39, and a valuation account that accumulates the impairment must be used for its recording.

D) DERECOGNITION OF FINANCIAL ASSETS

An entity shall derecognize a financial asset, including securitizations and any other type that involves a transfer of financial assets, when, and only when:

(a) the contractual rights to the cash flows from the financial asset expire; or

(b) the financial asset is transferred and meets the conditions for derecognition of the asset, as established in the following subparagraph.

The term transferred financial asset is used in this Conceptual Framework interchangeably to refer to all or a part of a financial asset or a group of similar financial assets.

E) TRANSFER OF FINANCIAL ASSETS

An entity shall have transferred a financial asset if, and only if:

(a) it has transferred the contractual rights to receive the cash flows of a financial asset; or

(b) it retains the contractual rights to receive the cash flows of the financial asset, but assumes a contractual obligation to pay them to one or more recipients. When this occurs, the entity shall treat the transaction as a transfer of financial assets if, and only if, the following three conditions are met:

i) The entity is not obligated to pay any amount to the eventual recipients unless it collects equivalent amounts from the original asset. Short-term advances made by the entity, with the right to full recovery of the amount plus accrued interest at market rates, do not violate this condition.

Los Laureles No. 214 - Lima 27 - Peru Tel.: (511)6309000 Fax: (511) 6309239

ii) The entity is prohibited, under the terms of the transfer contract, from selling or pledging the original asset, except as security for payment of the cash flows committed to the eventual recipients.

iii) The entity is obligated to remit without significant delay any cash flow it collects on behalf of the eventual recipients. In addition, the entity is not entitled to reinvest the cash flows, except in cash or cash equivalents during the short settlement period from the collection date to the remittance date agreed with the eventual recipients, provided that the interest generated by such investments is also delivered to the eventual recipients.

When an entity transfers a financial asset, it shall evaluate the extent to which it retains the risks and rewards inherent in its ownership. In this case:

(a) If the entity transfers substantially the risks and rewards inherent in the ownership of the financial asset, it shall derecognize it and recognize separately, as assets or liabilities, any rights and obligations created or retained as a result of the transfer.

(b) If the entity retains substantially the risks and rewards inherent in the ownership of a financial asset, it shall continue to recognize it.

(c) If the entity neither transfers nor retains substantially all the risks and rewards inherent in the ownership of the financial asset, it shall determine whether it has retained control over the financial asset. In this case:

(i) If the entity has not retained control, it shall derecognize the financial asset and recognize separately, as assets or liabilities, any rights or obligations created or retained as a result of the transfer.

(ii) If the entity has retained control, it shall continue to recognize the financial asset to the extent of its continuing involvement in the financial asset.

IAS 16 - PROPERTY, PLANT AND EQUIPMENT

Real estate is classified according to the predominant use of each property. Depending on this, it may be classified under investments (item 17), or under Property, furniture and equipment (item 18).

For the accounting record of the assets under item 18, the requirements established by IAS 16 "Property, Plant and Equipment" must be applied, except for the revaluation model option, and the disclosure requirements related to that model.

Entities shall adopt the cost model as the only subsequent recognition model. In this regard, such items shall be accounted for at their acquisition cost less accumulated depreciation and the accumulated amount of impairment losses (in accordance with IAS 36 "Impairment of Assets"). It should be noted that depreciation of an asset shall begin when it is available for use, that is, when it is in the location and in the conditions necessary to be able to operate in the manner intended by management.

The entity shall choose to record and depreciate separately the parts that make up an item of property, plant and equipment or treat it as a single item for recording and depreciation purposes.

In a finance lease transaction, the items of real estate, furniture and equipment shall adhere to the cost model of IAS 16.

The guidelines of IAS 23 shall be considered for the treatment of borrowing costs.

IAS 40 INVESTMENT PROPERTY (INVESTMENTS IN REAL ESTATE)

Real estate is classified according to the predominant use of each property. Depending on this, it may be classified under investments (item 17), or under real estate, furniture and equipment (item 18).

Los Laureles No. 214 - Lima 27 - Peru Tel.: (511)6309000 Fax: (511) 6309239

Investment properties are real estate held to obtain rents, capital gains or both, rather than for: (a) use in the production or supply of goods or services, or for administrative purposes; or (b) sale in the ordinary course of operations.

Investment properties generate cash flows that are largely independent of those from other assets held by the entity.

Investment properties shall be measured initially at fair value, which shall correspond to the transaction price, unless there is evidence to the contrary. Transaction costs shall be included in the initial measurement. Such cost comprises its purchase price and any directly attributable expenditure.

For subsequent recognition purposes, entities shall choose as an accounting policy between the cost model or the fair value model, and shall apply that policy to all their investments in real estate.

a) Cost Model

The company that chooses the cost model will measure its investments in real estate by applying the requirements established in IAS 16 "Property, Plant and Equipment" for said model.

The evaluation of impairment of investments in real estate measured at cost will be carried out on the date of preparation of quarterly financial statements. The determination of impairment, as well as its accounting, will be carried out in accordance with IAS 36.

For the purposes of disclosing the fair value of these investments in notes to the financial statements, the commercial value determined in an appraisal by an appraiser registered in the Registry of Appraisers (REPEV) of the SBS will be considered. The updating of the commercial value, for disclosure purposes, will be on the date of preparation of the annual financial statements.

b) Fair value model

For the valuation of investments in real estate under the fair value model, companies must have authorization from the SBS.

For the valuation of investments in real estate that generate periodic rents or flows, the discounted cash flow methodology must be used. In the case of investments in real estate that do not generate periodic rents or flows, the commercial value determined by appraisal must be used.

If the fair value is determined by the commercial value obtained in an appraisal, the company must update said value at the close of the date of preparation of annual financial statements. The appraisal must be carried out by an appraiser registered in the Registry of Appraisers (REPEV) maintained by the SBS.

In the event of significant changes in the commercial value, the SBS may order appraisals to be carried out in periods shorter than indicated and require the corresponding adjustment.

In the case of investments in real estate that generate periodic rents or flows, for updating purposes, the corresponding adjustments must be made at least at the close of the date of preparation of quarterly financial statements. In the event of significant changes in fair value, the SBS may additionally require appraisals, which must be carried out by appraisers registered in the REPEV.

Gains or losses derived from a change in the fair value of an investment in real estate will be included in the result for the year.

The provisions in paragraphs 32A and 34 of IAS 40 will not apply.

IAS 12 - INCOME TAX

Deferred taxes must be treated in accordance with the liability method of IAS 12. The fundamental principle of this standard is the recognition of a deferred tax asset (liability) when it is probable that the recovery or settlement thereof will give rise to future tax payments lower or higher than those that would have been made if there were no temporary differences.

Los Laureles No. 214 - Lima 27 - Peru Tel.: (511)6309000 Fax: (511) 6309239

IFRS 3 - BUSINESS COMBINATIONS (MERGERS) IAS 38 - INTANGIBLES

INTANGIBLES

Intangible assets are recorded in accordance with IAS 38 Intangible Assets; goodwill or mercantile goodwill originating in a business combination is recorded in accordance with the provisions of IFRS 3 "Business Combinations".

Intangible assets with a finite useful life will be amortized over a maximum period of 5 years. The amortization method adopted may not be modified without prior authorization from the Superintendency.

Intangible assets with an indefinite useful life, within which goodwill or mercantile goodwill is included, generated as of 1 January 2010 will be recognized at cost less accumulated impairment. The company will analyze impairment at least annually, and must prepare a special report on the evaluation of goodwill, duly documented and supported, which must be available to the Superintendency. Likewise, the Superintendency may require a special impairment report issued by professionals independent of the company.

Goodwill previously recognized

Goodwill or mercantile goodwill, originating prior to 1 January 2010, will continue to be amortized in accordance with the accounting standards in force at the date of its incorporation into assets, with a maximum period of 5 years.

Retroactive application

Goodwill or mercantile goodwill, originating prior to 1 January 2010 and presenting a balance (net of accumulated amortization) at that date, may be adapted to the new provisions established in this Conceptual Accounting Framework retroactively, with prior authorization from the Superintendency, and must comply with the impairment evaluation requirements established in the IFRS, and provided that: i) the valuations and other information necessary to apply IFRS 3 have been obtained by the company in such a way that it is not necessary to make estimates that should have been made at an earlier date; and ii) the company applies the IFRS corresponding to asset impairment and intangible assets prospectively from that same date.

The Superintendency may require a special impairment report issued by professionals independent of the company.

The effect produced by the retroactive application will be recorded against the accounts of item 38 Accumulated Results, and must be disclosed in notes to the financial statements.

IAS 21 - THE EFFECTS OF CHANGES IN FOREIGN EXCHANGE RATES

IAS 21 provides that when the reporting entity prepares its financial statements, it must determine its functional currency and calculate its results and financial position using that currency. The functional currency is defined as that which corresponds to the primary economic environment in which the entity operates.

For the purposes of transactions in foreign currency, the following will be taken into account:

Functional currency: The functional currency is the nuevo sol.

Foreign currency: It is any currency other than the functional currency.

Presentation currency: It is the currency in which the financial statements are presented, which will be in the legal currency of the country, that is, the nuevo sol.

Accounting exchange rate: Exchange rate established by the Superintendency on a daily basis.

Los Laureles No. 214 - Lima 27 - Peru Tel.: (511)6309000 Fax: (511) 6309239

Allocation by currency: For the assignment of the currency, the following guidelines must be considered:

a) Assets and liabilities, except those indicated in the following subparagraphs, shall be denominated in the currency in which they were agreed.

b) Debt instruments issued or acquired shall be denominated in the currency in which their repayment occurs, regardless of the currency in which they were received or paid.

c) Equity instruments, in the currency in which the issuer expresses the nominal value.

d) Tangible assets, in the legal currency of the country.

e) Commitments or contingencies, as well as provisions for litigation and others, in the currency in which they will be settled.

f) Provisions for assets, depreciation, amortization of intangible assets, write-downs or impairment, in the currency in which the assets are denominated.

g) Income and expenses shall be denominated according to the currency of origin of the corresponding assets and liabilities.

Valuation of items in foreign currency: The elements of the financial statements shall be recognized according to the following rules:

(a) Initial recognition: Transactions in foreign currency shall be recorded, at the time of initial recognition, using the functional currency. For this purpose, the amounts in foreign currency shall be converted to the functional currency by applying the accounting exchange rate of the transaction date.

(b) Subsequent recognition At the close of each reporting period, the following guidelines shall be followed:

a. Monetary assets and liabilities shall be converted using the closing accounting exchange rate.

b. Non-monetary assets and liabilities, not measured at fair value, shall be converted at the exchange rate of the transaction date.

c. Non-monetary assets and liabilities measured at fair value shall be converted at the accounting exchange rate of the date on which the fair value was determined.

Recognition of exchange differences: The recognition of exchange differences shall be subject to the following guidelines:

a. Exchange differences arising from the settlement of monetary assets and liabilities, or from converting such items at exchange rates different from those used for their initial recognition, which have occurred during the year or during previous financial statements, shall be recognized in the profit or loss for the year in which they occur. This treatment does not apply to the exchange difference arising from a monetary item that forms part of an investment in a foreign operation of the entity, which shall be subject to the provisions of subparagraph c of this section.

b. When a loss or gain derived from a non-monetary item is recognized in Other Comprehensive Income, any exchange difference included in that loss or gain shall also be recognized in Other Comprehensive Income. In the case of non-monetary items, whose losses and gains are recognized in the profit or loss for the year, any exchange difference included in that loss or gain shall also be recognized in the profit or loss for the year.

c. Exchange differences arising from a monetary item that forms part of a net investment in a foreign operation shall be recognized in Other Comprehensive Income, and shall be reclassified to profit or loss when the disposal of the foreign operation occurs. "Net investment in a foreign operation" is understood as the entity's participation, which it presents in its financial statements, in the net assets of said operation.

Recording and presentation in the financial statements: Items in foreign currency (currency other than the functional currency) that are converted to the presentation currency (the nuevo sol) shall be recorded and presented in the statement of financial position and in comprehensive income, according to the following:

Los Laureles No. 214 - Lima 27 - Peru Tel.: (511)6309000 Fax: (511) 6309239

a. If the transaction corresponds to operations in nuevos soles: The third digit 1 shall be used and it shall be presented in the financial statements in the National Currency column.

b. If the transaction corresponds to operations in currencies other than the legal currency of the country (nuevo sol): The third digit 2 shall be used and it shall be presented in the financial statements in the Foreign Currency column.

Treatment of exchange differences in derivative financial instruments: The guidelines established in this section do not apply to derivative financial instruments, which shall be governed by their specific rules.

IAS 8 - ACCOUNTING POLICIES, CHANGES IN ACCOUNTING ESTIMATES AND ERRORS

Changes in accounting policies, changes in accounting estimates and correction of errors shall be made in accordance with IAS 8 "Accounting Policies, Changes in Accounting Estimates and Errors", except in the following cases:

a) The effect of the correction of errors corresponding to investments shall be recognized in the profit or loss for the period.

b) When an accounting standard issued by this Superintendency specifies a specific treatment.

The effect of changes in accounting policies and correction of errors shall be recorded in subaccounts 3801.01 "Accumulated profit with capitalization agreement", 3801.02 "Accumulated profit without capitalization agreement", or 3802.01 "Accumulated losses from previous years", as applicable, except in the cases provided for in a) and b).

IFRS 5 – NON-CURRENT ASSETS HELD FOR SALE

Those assets whose carrying amount will be recovered fundamentally through a sale and not through their continued use shall be classified in this category. For this, the asset must be available for immediate sale, subject to the terms for the sale of such assets, and the sale must be highly probable. These assets must be measured at the lower of their carrying amount and their fair value less costs to sell.

An impairment loss shall be recognized due to initial or subsequent reductions in the value of the asset, down to fair value less costs to sell.

Los Laureles No. 214 - Lima 27 - Peru Tel.: (511)6309000 Fax: (511) 6309239

ANNEX 1

NOTE REFERRING TO THE CATEGORIES OF FINANCIAL INSTRUMENTS

	Financial assets and liabilities designated at fair value			Financial Instruments at amortized cost
	For Trading or for hedging purposes	At initial moment	Loans and Accounts Receivable	Available-for-sale Investments	Assets held to maturity	Liabilities at amortized cost
	S/. 000	S/. 000			S/. 000	S/. 000
ASSETS
Cash and Banks
Investments (net)
Accounts Receivable from Insurance Operations (net)
Less: Charges applied on policies
Accounts receivable from operations subject to risk
Accounts receivable from Reinsurers and Coinsurers
Miscellaneous accounts receivable (net)
Accounts receivable from derivative financial products for trading
Accounts receivable from derivative financial products for hedging purposes
Accounts receivable from macro-hedges
TOTAL ASSETS
LIABILITIES
Accounts payable from derivative financial products for trading
Accounts payable from derivative financial products for hedging purposes
Accounts payable from Macro-hedges
Financial Obligations
Accounts payable to Intermediaries and Auxiliaries
Accounts payable to insured parties
Accounts payable to Reinsurers and Coinsurers (net)
Financial Obligations
TOTAL LIABILITIES

Los Laureles No. 214 - Lima 27 - Peru Tel.: (511)6309000 Fax: (511) 6309239

ANNEX 2

NOTE REFERRING TO CONCENTRATIONS OF FINANCIAL INSTRUMENTS

BY GEOGRAPHICAL AREA

Financial instruments	Country	For trading or for hedging purposes	At initial moment	Accounts receivable	Available-for-sale Investments	Total

	Perú
	United States
	:
	TOTAL

20X2
At fair value with changes in results

Financial instruments	Country	For trading or for hedging purposes	At the initial moment	Accounts receivable	Investments Available for sale	Total

	Peru
	United States
	:
	TOTAL

20X1
At fair value with changes in results

BY TYPE OF INSURANCE CONTRACT

Insurance contracts	Accounts receivable from Insurance operations	%	Accounts Receivable from reinsurers and Coinsurers	%	Accounts receivable from Insurance operations	%	Accounts Receivable from reinsurers and Coinsurers	%
LIFE
Life
Individual annuity
Retiree annuity
Complementary work risk insurance
Pension insurance
Disability pensions
Survivorship pensions
GENERAL
Fire and Allied Lines
Loss of profit
Transport
Marine hull
Aviation
Automobiles
All risk for contractors
Machinery breakdown
Erection all risk
All risk electronic equipment
Boilers
Robbery and assault
Dishonesty
Animals
Homeowners
Civil liability
Surety bonds
Domestic credit
Export credit
Multirisk
Agricultural
Miscellaneous
Accidents
Medical assistance
SOAT
TOTAL

20X2
20X1

Los Laureles Nº 214 - Lima 27 - Peru Tel.: (511)6309000 Fax: (511) 6309239

ANNEX 3

ANNEX..4

NOTE REFERRING TO THE SENSITIVITY ANALYSIS OF THE MORTALITY TABLE AND THE INTEREST RATE

LIFE INSURANCE CONTRACTS

As of December 31, 20X2

Variables	Changes in variables (%)	Impact on gross liabilities S/. 000	Impact on net liabilities S/. 000	Impact on results before taxes S/. 000	Impact on equity S/. 000
Mortality table
Interest rate

As of December 31, 20X1

Variables	Changes in variables (%)	Impact on gross liabilities S/. 000	Impact on net liabilities S/. 000	Impact on results before taxes S/. 000	Impact on equity S/. 000
Mortality table
Interest rate

INVESTMENT CONTRACTS WITH DISCRETIONARY PARTICIPATION COMPONENTS

As of December 31, 20X2

Variables	Changes in variables (%)	Impact on gross liabilities S/. 000	Impact on net liabilities S/. 000	Impact on results before taxes S/. 000	Impact on equity S/. 000
Mortality table
Interest rate

As of December 31, 20X1

Variables	Changes in variables (%)	Impact on gross liabilities S/. 000	Impact on net liabilities S/. 000	Impact on results before taxes S/. 000	Impact on equity S/. 000
Mortality table
Interest rate

SENSITIVITY ANALYSIS

GENERAL INSURANCE CONTRACTS

As of December 31, 20X2

Changes in variables	Impact on gross liabilities	Impact on net liabilities	Impact on results before taxes	Impact on equity
Average cost of claims	%
Average number of claims	%
Average claims settlement period(1)

As of December 31, 20X1

Changes in variables	Impact on gross liabilities	Impact on net liabilities	Impact on results before taxes	Impact on equity
Average cost of claims	%
Average number of claims	%
Average claims settlement period(1)

[1] Change (reduction) in the average number of months for claims settlement

Los Laureles No. 214 - Lima 27 - Peru Tel.: (511)6309000 Fax: (511) 6309239

ANNEX 5

NOTE REFERRING TO THE CONCENTRATION OF GENERAL AND LIFE INSURANCE RISKS BY GEOGRAPHICAL AREA

Geographic Location	Period 1			Period 0
	Gross Liabilities S/. 000	Reinsurance of Liabilities S/. 000	Net Liabilities S/. 000	Gross Liabilities S/. 000	Reinsurance of Liabilities S/. 000	Net Liabilities S/. 000
Domestic
North
Center
East
South
Foreign
TOTAL

NOTE REFERRING TO THE CONCENTRATION OF LIFE INSURANCE RISKS BY GEOGRAPHICAL AREA

Geographic Location	Period 1			Period 0
	Gross Liabilities S/. 000	Reinsurance of Liabilities S/. 000	Net Liabilities S/. 000	Gross Liabilities S/. 000	Reinsurance of Liabilities S/. 000	Net Liabilities S/. 000
Domestic
North
Center
East
South
Foreign
TOTAL

Los Laureles No. 214 - Lima 27 - Peru Tel.: (511)6309000 Fax: (511) 6309239

ANNEX 6

FORM "B-1" INSURANCE COMPANY: …………………………………. INCOME STATEMENT AS OF (expressed in Nuevos Soles)

CONCEPT	National Currency (1)	Foreign Currency (2)	TOTAL (1+2)
Net Insurance Premiums
Net Accepted Reinsurance
Adjustment of technical reserves for Insurance Premiums and Accepted Reinsurance
Total Net Premiums for the Year
Net Ceded Premiums
Adjustment of Technical Reserves for Ceded Premiums
Total Net Ceded Premiums for the Year
Net Earned Premiums
Claims from Net Insurance Premiums
Claims from Net Accepted Reinsurance
Claims from Net Ceded Premiums
Recoveries and salvage
Net Incurred Claims
Adjustment of Reserves for Catastrophic Risks
Gross Technical Result
Commissions on Net Insurance Premiums
Commissions on Accepted Reinsurance, Net
Commissions on Ceded Premiums, Net
Net Commissions
Miscellaneous Technical Income
Miscellaneous Technical Expenses
Miscellaneous Income (Expenses), Net
Technical Result
Income from Investments and Other Financial Income
Investment and Financial Expenses
Provisions for non-current assets held for sale
Result from Investments
Administrative Expenses (Net of Income from Services and Others)
Operating Result
Result before shares and income tax
Shares
Income Tax
Net Profit (Loss) for the Year
Basic earnings (loss) per share
Diluted earnings (loss) per share

FORM "B-2"
INSURANCE COMPANY: ………………………………….
STATEMENT OF INCOME AND OTHER COMPREHENSIVE INCOME AT (Expressed in Nuevos Soles)

CONCEPT	National Currency (1)	Foreign Currency (2)	TOTAL (1+2)
Net Profit (Loss) for the year
Other comprehensive income:
Net Gain (Loss) on financial assets available for sale
Net Gain (Loss) on Cash Flow Hedges
Hedges of net investments in foreign operations
Exchange Difference from Conversion of Foreign Operations
Share in other comprehensive income of subsidiaries, associates and joint ventures
Other components of Comprehensive Income
Other comprehensive income before tax
Income tax related to the components of Other comprehensive income *
Other Comprehensive Income for the year, net of taxes
Total Comprehensive Income for the Year, net of taxes

[*] The income tax related to each component of other comprehensive income shall be disclosed in the notes to the financial statements

[Nota:] Note: The amounts for reclassification adjustments shall be presented in notes

ANNEX 7

FORM C
INSURANCE COMPANY: …………………………………………….
For the years ended 31 December …………………
(in thousands of nuevos soles)

Statement of Cash Flows	period (x)	period (x-1)
Reconciliation of the entity's net profit with cash and cash equivalents from operating activities
Net profit (loss) for the year
Adjustments to reconcile net profit (loss) with cash provided by operating activities
Adjustment of technical reserves
Depreciation and amortization
Valuation of investment instruments
Provision for fluctuation in securities
Provision for bad debts
Provision for credit risk of TCHN and real estate loans for the acquisition of future assets
Profits (losses) recognized from affiliated companies
Impairment of investments in securities and real estate; Real estate, furniture and equipment
(Gain) loss on sale of investments in securities and real estate; Real estate, furniture and equipment and discontinued operations
Increase (decrease) in deferred liabilities
Increase (decrease) in other liabilities
Provision (realization) of deferred income tax
(Gains) losses from accounting changes
Net variation in current assets and liabilities
(Increase) decrease in assets
Accounts receivable from insurance operations
Accounts receivable from operations subject to credit risk
Accounts receivable from reinsurers and co-insurers
Miscellaneous accounts receivable
Technical reserves assumed by reinsurers
Prepaid expenses
Other assets
Increase (decrease) in liabilities
Taxes, profit sharing and miscellaneous accounts payable
Accounts payable to intermediaries and auxiliaries
Accounts payable to insured parties
Accounts payable to reinsurers and co-insurers
Technical reserves for claims
Result for the period after net variation in assets and liabilities and adjustments
Income tax paid / collected
Net cash flows from operating activities
Cash flows from investing activities
Purchase of investments in securities and investments in real estate
Sale of investments in securities and investments in real estate
Purchase of real estate, furniture and equipment
Sale of real estate, furniture and equipment
Purchase of intangible investments
Purchase (Sale) of other assets
Dividends received
Net cash flows from investing activities

Los Laureles No. 214 - Lima 27 - Peru Tel.: (511)6309000 Fax: (511) 6309239

Cash flows from financing activities
Increase in financial obligations
Increase in long-term debt
Payments of financial obligations
Payments of long-term debt
Issuance of equity instruments
Repurchase of own shares
Dividends paid
Other inflows related to financing activities
Other outflows related to financing activities
Net cash flows from financing activities
Net increase (decrease) in cash and cash equivalents before the effect of changes in the exchange rate
Effect of changes in the exchange rate on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the period
Cash and cash equivalents at the end of the period

ANNEX 8

Form "D"
Statement of Changes in Equity
Name of the Entity
Statement of Changes in Equity for the years ended December 31, ……. and December 31, … (Expressed in thousands of Nuevos Soles)

	Share Capital	Financial Assets Available for Sale
	Equity	Equity Adjustments
Opening Balance of the Period (x-1) before Adjustments
Adjustments due to Changes in Accounting Policies
Adjustments due to Correction of Errors
Opening Balance after Adjustments
Comprehensive Income
Changes in Net Equity (Not Included in Comprehensive Income)
Capital Increase (Other than Business Combinations)
Capital Decrease (Other than Business Combinations)
Increase (decrease) from Business Combinations
Reclassification of Financial Liabilities to Equity
Reclassification of Equity to Financial Liabilities
Dividends
Transactions with Treasury Shares
Reclassifications between Equity Accounts
Other Changes in Net Equity
Balance at the End of the Period (x-1)
Opening Balance of the Period (x) before Adjustments
Adjustments due to Changes in Accounting Policies
Adjustments due to Correction of Errors
Opening Balance after Adjustments
Comprehensive Income
Changes in Net Equity (Not Included in Comprehensive Income)
Capital Increase (Other than Business Combinations)
Capital Decrease (Other than Business Combinations)
Increase (decrease) from Business Combinations
Reclassification of Financial Liabilities to Equity
Reclassification of Equity to Financial Liabilities
Dividends
Transactions with Treasury Shares
Reclassifications between Equity Accounts
Other Changes in Net Equity
Final Balance of the Period (x)