Grupo de Inversiones Suramericana SA: SURA posts 1.4 trillion COP in net control income, up 35% at the end of Q3
- This final result reflects growth in all segments of Suramericana as well as the control of SURA Asset Management’s expenses and the amount of income obtained through the equity method of associated companies belonging to Grupo SURA’s investment portfolio.
Revenue grew 22%, or COP 4.1 trillion more than in the first nine months of 2021.
Grupo SURA released to the market its consolidated results for this last third quarter, where operating profit amounted to 22.3 trillion COP (5,476 million USD*) in September 2022, an increase of 22% compared to at the same time last year, which is equivalent to COP 4.1 trillion.
This is due to three factors: (i) positive levels of business performance with all of Suramericana’s insurance segments; (ii) SURA Asset Management’s ability to maintain its fee and commission income, despite the volatility prevailing in the capital markets; and (iii) a 59% increase in Grupo SURA’s revenues obtained via the equity method of its associates, in particular Bancolombia, Grupo Nutresa and Grupo Argos.
This level of results was accompanied by control of operating expenses at the level of the subsidiaries as well as increased efficiency efforts to offset the increase in claims, particularly in the Mandatory Health and Auto solutions. Consequently, the operating result increased by 24% from September 2022, and the net result of control, which is attributable to Grupo SURA, amounted to 1,400 billion COP (341 million dollars), an increase of 35% compared to the same period last year.
“The positive results achieved during the third quarter reflect the confidence that individuals and businesses have placed in the products, solutions and services of the companies that make up our portfolio, as well as the efficiency efforts of Suramericana and SURA Asset Management. only confirms the benefits of a well-diversified portfolio while allowing us to move forward in our objective of sustainable profitability”, said Gonzalo Perez, CEO of Grupo SURA.
Suramericana, for its part, recorded written premium income of COP 19.1 trillion ($4,694 million), up 24% compared to the same period last year, thanks to the growth in the Life, Health and P&C segments, while the claims rate increased, particularly for our Mandatory Health subsidiary, EPS SURA, with the enrollment of a greater number of subscribers, as well as the motor insurance solution. All of this ended in a recovery with our net profit figure since the beginning of the year which amounted to 240,252 million COP (59 million dollars), this also thanks to the returns on income from ‘investment.
As for SURA Asset Management, noteworthy is its resilient streams of fee and commission income, which totaled COP 1.9 trillion (USD 465 million) at the end of the third quarter, down 4% from the same period last year, taking into account the impact of the degree of volatility prevailing on the capital markets as well as the regulatory reduction of fees and commissions in Mexico. These impacts were partially offset by cost control and higher productivity levels, resulting in a year-to-date net profit of COP 146,376 million (USD 36 million).
“Amid greater volatility in capital markets, higher inflation across the region and rising interest rates, we find that the operational performance levels of our subsidiaries are not reflected not just in the results we present, but also in their ability to optimize their business footprint, based on their capabilities and the efficiencies achieved with their operating models“said Ricardo Jaramillo, Director of Business Development and Finance.
Sustainability Performance Assessment
Grupo SURA ranked among the top 1% of companies in the diversified financial services and capital markets sector, according to S&P Global’s Corporate Sustainability Assessment (CSA), which examined the performance of 533 organizations.
The Company maintained its leadership in areas such as financial inclusion, risk and crisis management, business ethics, human talent attraction and retention, and corporate citizenship. This assessment also identified opportunities for improvement in the areas of diversity, seniority and experience on the part of the Company’s Board of Directors, as well as with its decarbonization strategy.