ESP�RITO SANTO FINANCIAL GROUP ANNOUNCES 2002 RESULTS OF

TRANQUILIDADE GROUP OF INSURANCE COMPANIES

Esp�rito Santo Financial Group S.A. ("ESFG") (Euronext Lisbon and NYSE: ESF)
announced today the 2002 results of Companhia de Seguros Tranquilidade
("Tranquilidade"), Companhia de Seguros Tranquilidade Vida ("Tranquilidade
Vida") and Esp�rito Santo Seguros ("ESS").

Insurance activities in Portugal in 2002 were affected by the significant
slowdown in the domestic economy, combined with a substantial increase in
re-insurance costs and the impact of the deteriorating capital markets on the
investment portfolios.

During the course of 2002, Tranquilidade (non life sector) pursued the
restructuring process initiated in the previous year. This implied a
reorganization of significant areas in its portfolio designed to improve its
quality and reduce claims levels. These actions resulted in a small decline of
2.4% in premiums as a consequence of the increased selectivity applied (overall
market share declined from 9.5% in 2001 to 8.5% in 2002), significantly
followed by a reduction of 14.4% in claims. Furthermore, policies of cost
reduction and reduction in headcount were carried out in the period. As a
consequence, technical results before reinsurance increased 80.2% in 2002 to
77.2 million Euros, whilst technical results net of reinsurance increased 49.2%
to 54.1 million Euros in the same period, highlighting the effect of the
increase in reinsurance costs. Tranquilidade's combined ratio (including
reinsurance activities) improved from 115.0% in 2001 to 107.3% in 2002, with
the most significant reductions originating in the areas of fire, household
comprehensive, workers compensations and motor.

However, Tranquilidade's performance was affected by the impact of personnel
restructuring costs (in 2002 net headcount reduction totalled 216,
corresponding to 16% of the workforce) together with significantly lower
results from financial investments (including its 25% participation in
Tranquilidade Vida) and higher re-insurance costs due to the post September
11th market changes. The effect of these latter increases contributes to the
contrast between Tranquilidade's combined ratio (excluding reinsurance
activity) of 100.0% and its combined ratio (including reinsurance activity) of
107.3% at the end of 2002. As a result of all these factors, Tranquilidade
posted a loss of 18.6 million Euros in 2002, corresponding to a 10.2% increase
when compared with the loss of the previous year.

Tranquilidade's capital was increased by 40 million Euros to 135 million Euros
at the end of 2002 and its solvency margin improved form 142.0% in 2001 to
178.0% in 2002.

At the operational level the performance of Tranquilidade Vida (life sector)
was positively influenced by the shift away from capitalisation products
towards traditional risk and private pension fund products. Market share in the
traditional products increased from 10.1% to 11.0% and in private pension plans
reached 28.3%, as Tranquilidade Vida maintained its leadership in this activity
in the Portuguese market. However, overall premiums declined 12.1% to 702.1
million Euros in 2002 reflecting the deliberate move away from capitalisation
products, causing Tranquilidade Vida's overall market share to decline from
18.0% in 2001 to 15.0% in 2002. Claims declined by 11.7% in the same period, as
the volume of policy maturities declined in 2002 when compared with the
previous year. Bancassurance activity remained at a satisfactory level, with
approximately 90% of Tranquilidade Vida's products being distributed through
the networks of Banco Esp�rito Santo ("BES") and Banco Internacional de Cr�dito
("BIC").

However, in spite of the conversion of certain financial investments away from
equity related instruments carried out in 2002, results at Tranquilidade Vida
were still significantly affected by the continuing decline in stock exchange
prices in Portugal, where the PSI-20 Index declined by 24.7% in 2002. This
caused Tranquilidade Vida to show a loss of 62.5 million Euros in 2002, against
a small gain in 2001.

In late 2002, Tranquilidade Vidas's shareholders (Esp�rito Santo Financial
Group and Credit Agricole Group, through Bespar) paid in an additional 100
million Euros towards Tranquilidade Vida's capital that reached a fully paid in
250 million Euros at the end of 2002, whilst its solvency ratio grew from
114.3% in 2001 to 151.0% in 2002.

In spite of a 35.8% increase in premiums, profits at ESS (non life
bancassurance) in 2002 declined 22.7% to 0.9 million Euros in 2002, compared
with those of the preceding year. This decline relates to the 54.1% increase in
claims (including provisions for claims), originating primarily from motor
insurance.

Technical results increased 5.4% in the year and distribution through the
networks of BES and BIC continued to perform successfully; in the course of
2002, a new distribution channel was opened in the Azores Islands, through the
newly established Banco Esp�rito Santo dos A�ores.

18th February 2003



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