Market Overview

A year of consolidation throughout Latin America GRUPO SURA continues to grow in terms of both profitability and corporate governance


-- YTD profits at the end of September came to COP 459,155 million (USD 255.0 million), which was 85.8% more than for the same period last year.

-- This gratifying level of results was mainly due to the excellent performance of its subsidiaries, from which the Company posted COP 283,365 million (USD 157.4 million).

-- In order to be able to constantly embrace best practices and international standards in terms of corporate governance, a change was announced with the posts of Chairman and Vice-chairman of GRUPO SURA´s Board of Directors, which shall be taken over by two currently-serving independent members: Armando Montenegro Trujillo and Hernando Yepes Arcila.

MEDELLIN, Colombia, Oct. 26, 2012 /PRNewswire/ -- Grupo de Inversiones Suramericana - GRUPO SURA continues to provide a good level of results thereby confirming the advances made with the consolidation of its operations in Latin America at the end of this past third quarter. YTD profits at September came to COP 459,155 million (USD 255.0 million), that is to say 85.8% more than for the same period last year. Also, and in keeping with its ongoing strategy, the Company has reduced its total liabilities by 62.36% so far this year, having ended this past quarter with a debt-to-asset ratio of 5.11%.

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In addition to approving Q3´s financial statements, the Group´s Board of Directors announced that the posts of its Chairman and Vice-Chairman shall be taken over by two independent members, Armando Montenegro Trujillo and Hernando Yepes Arcila, respectively. This decision was taken to further the Group´s best practices and international standards with regard to corporate governance.

GRUPO SURA was again included in the Dow Jones Sustainability Index which benchmarks sustainable business management, including aspects regarding corporate governance and transparency practices. In this respect, the Company's Chief Executive Officer, David Bojanini, stated: "Our independent members, all top-ranking executives, have always been key members of the Company's Board of Directors, and now they shall be empowered to play an even greater role. This decision is in keeping with GRUPO SURA´s firm conviction and ongoing commitment to continue embracing the best practices dictated by international corporate governance standards, so as to continue boosting confidence among both our investors and the market at large".

As for the Group´s financial results, our Q3 report contained the following highlights:

  • The subsidiaries of both SURAMERICANA (the Group´s social security and insurance sub-holding) and SURA Asset Management (its pension, savings and investment sub-holding) provided, through the equity method, revenues of COP 283,365 million (USD 157.4 million).
  • Dividend and interest income from investments came to COP 198,727 million (USD 110.3 million),
  • Profits from the sale of investments came to COP 63,418 million (USD 35.2 million), these corresponding mainly to the sale of a 4.90% stake in SURA Asset Management as announced in Q2 of this year.
  • The Company's assets totaled COP 20.1 billion (USD 11.2 billion).
  • Total liabilities have dropped by 62.36% so far this year to COP 1.0 billion (USD 569.9 million), for a debt ratio of 5.11%, which is much lower than that posted at the end of last year.
  • Shareholder equity at the end of Q3 2012 came to COP 19.1 billion (USD 10.6 billion).
  • GRUPO SURA´s intrinsic share price came to COP 33,124.37 (USD 18.40).

The Company also did well on the local stock exchange, with the local benchmark indices, the IGBC, COLCAP and COL20, up by 4.8%, 2.5% and 2.0% respectively. As a result, the price of GRUPO SURA's preferred share went from COP 32,500 at the end of Q3 to COP 33,300 at the end of Q3, having gained 2.5% along with substantial share liquidity. Both the Group´s ordinary and preferred shares obtained daily average trades of COP 23.900 million, and indeed GRUPO SURA continues to be one of the top investment choices on the local stock market.

Subsidiary performance

As for the performance of GRUPO SURA's two main subsidiaries, the following are the most salient results:

  • The companies that form part of SURAMERICANA, in Colombia, obtained premiums of COP 3.4 billion (USD 1.9 billion), for a growth of 17.1%, which was higher than the market average. This insurance and social security sub-holding also provided very good news during Q3 in terms of its growth, having launched its SURA brand of insurance products in the Dominican Republic, and having received official go-ahead to purchase Asesuisa in El Salvador. Consequently SURAMERICANA reported a total of COP 201,721 million (USD 112 million) to GRUPO SURA.
  • Thanks to the good level of performance obtained in different countries throughout Latin America, net profits from SURA Asset Management, the sub-holding representing the pension and savings assets acquired in 2011, came to COP 223,905 million (USD 124.4 million), after the amortization of deferred assets obtained from the ING acquisition as well as adjustments for exchange differences, minority interest and financial interest. This gratifying level of performance was mainly due to higher commission income and returns on investment. EBITDA came to USD 293.0 million, of which Chile accounted for 39.5%, Mexico 33.6%, Peru 18.6%, Colombia 4.8% and finally Uruguay with 3.5%.

It is important to note that SURA Asset Management provided GRUPO SURA with 67.32% of its net profits, this corresponding to the Company's total stake in this sub-holding.

Grupo de Inversiones Suramericana –GRUPO SURA- is a Latin American company listed on the Colombian Stock Exchange and registered with the ADR- Level 1 program in the United States. It is also listed with the Latibex Market for Latin American Stocks in Euros hosted by the Madrid Stock Exchange. We are also one of the three companies from the Latin American financial service sector to be admitted to the Dow Jones Sustainability Index (DJSI), which monitors companies who have become global benchmarks thanks to the good practices they have adopted from the economic, environmental and social standpoints. GRUPO SURA has been awarded two investment grades (from Fitch Ratings and S&P).


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