Grupo De Inversiones Suramericana S.a. · BVC:GRUPOSURA
Grupo De Inversiones Suramericana — Q2 2019 Earnings Presentation
24 slides from Grupo De Inversiones Suramericana's earnings presentation, Aug 1, 2019
Slide 1: Q2 2019 Results Presentation
Q2 2019 R E S U LT S P R E S E N TAT I O N TORRES DEL PAINE, CHILE 1
Slide 2: Disclaimer
DISCLAIMER The forward-looking statements contained herein are based on Management’s current forecasts and outlook. For better illustration and decision-making, figures for Suramericana, SURA Asset Management and its subsidiaries are administrative rather than accounting, and therefore may differ fr
Slide 3: Agenda
AGENDA Suramericana SURA Grupo SURA Asset Management Consolidated Results Insurance, Trends and Risk Pension Funds, Savings Management and Investmets 3
Slide 4: Consolidated Results
C O N S O L I D AT E D R E S U LT S MAR DEL PLATA, BUENOS AIRES, ARGENTINA 4
Slide 5: Continues positive trend in operating and net income
CONTINUES POSITIVE TREND IN OPERATING AND NET INCOME good revenue growth with specific impacts on the expenses of some operations OPERATING EARNINGS OPERATING REVENUES OPERATING EXPENSES COP 1.54 tn COP • Operating growth COP Improvements in claims ratio and expense control 23.7% 10.5 tn • Investmen
Slide 6: Balance sheet strength: growth in total equity
BALANCE SHEET STRENGTH: GROWTH IN TOTAL EQUITY driven by organic growth in insurance and higher returns on the investment portfolios STATEMENT OF FINANCIAL POSITION JUN-19 DEC-18 VAR% VAR$ Cash, investments and CONSOLIDATED FINANCIAL DEBT investment properties 25,829 24,731 4.4% 1,098 Investments in
Slide 7: We continue managing deleveraging process and investment capacity
WE CONTINUE MANAGING deleveraging process and investment capacity as the holding company INDIVIDUAL DEBT I N D I V I D U A L D E B T M AT U R I T Y P R O F I L E (HOLDING) 1,763 USD 17.3% 962 COP 4.7 tn 233 440 521 274 6% 157 95 93 59 - - COP 2019 2020 2021 2022 2023 2024 2026 - 2029 2030 - 2049 82.
Slide 8: Operating earnings grow 23.7%
OPERATING ERANINGS GROW 23.7% driven by investment income and equity method CONSOLIDATED INCOME STATEMENT JUN-19 VAR$ VAR% Retained premiums 5,332 193 3.8% Operating earnings excluding return on legal reserves grow 8.0% Commission income 1,334 111 9.1% Revenues from services rendered 1,905 342 21.9%
Slide 9: Consolidated net income grows 37.4%
CONSOLIDATED NET INCOME GROWS 37.4% even with non-comparable effects in Suramericana GRUPO SURA & OTHER* COP +40,436 MM +37.4% +42.5% 4 21,708 950,715 41,429 164,095 (5,403) (17,302) +48.1% -33.0% 139,792 691,914 (85,521) PARENT COMPANY’S NET INCOME COP 846,720 MM 42.4% NET NET INCOME NET INCOME EQU
Slide 10: Our portfolio
OUR PORTFOLIO Estimated value 4.0 0.5 34.6 4.0 29.9 9.1 4.7 7.0 10.0 SURA AM SURAMERICANA BANCOLOMBIA GRUPO GRUPO OTHER PORTFOLIO DEBT PORTFOLIO CAP. NUTRESA ARGOS VALUE (HOLDING) VALUE (-) BURSÁTIL DEBT M AR K E T C AP I TAL I Z AT I O N SHARES ADTV COMMON SHARE (Mar. 31, 2019) (COMMON + PREF) PRIC
Slide 11: Consolidated Results
C O N S O L I D AT E D R E S U LT S GUATAPÉ, ANTIOQUIA, COLOMBIA 11
Slide 12: Suramericana continues with positive growth dynamic
SURAMERICANA CONTINUES WITH POSITIVE GROWTH DYNAMIC in revenues and consolidating its regional operations RETAINED PREMIUMS + REVENUES WRITTEN REVENUES FROM NET INCOME PREMIUMS SERVICES SERVICES RENDERED 2019 RENDERED 1% Dominican Rep. 3% El Salvador COP COP COP 3% Panam 2% Uruguay 6.2 tn 1.8 tn 173
Slide 13: Positive revenue growth
POSITIVE REVENUE GROWTH net income impacted by specific expenses in some operations RETAINED PREMIUMS + REVENUES FROM SERVICES CLAIMS + ADJ. RESERVES: SERVICES RENDERED: TECHNICAL RESULT: % RET. PREMIUMS COSTS / REVENUES % OPERATING REVENUES COP 2,526,361 2,705,367 1,742,373 6.9 trillion 1,367,928 1
Slide 14: Lower net income
LOWER NET INCOME explained by specific impacts on the 3 business segments C O R P O R AT E COP +21,524 MM SEGMENT 259,292 -8.4% -36.3% (21,178) -33.0% (24,365) 17,639 2,624 173,771 714 547 ADJUSTED ROE*** (61,501) 10.7% ADJUSTED ROTE*** 13.9% NET LIFE PROPERTY & HEALTH OPER. INTEREST TAXES OTHER** N
Slide 15: Life segment: premium growth
LIFE SEGMENT: PREMIUM GROWTH and control in claims ratio don´t offset higher expenses due to VAT on commissions paid 8% 12% Other Individual Life Double digit growth in premiums, even with the NET INCOME accounting effect on healthcare premiums 33% RETAINED Positive net adjustment of reserves offset
Slide 16: P&C segment: higher reinsurance costs and Argentina hyperinflation
P&C Segment: higher reinsurance costs and Argentina’s hyperinflation effect negatively impact results 20% Other 47% Car Organic growth in premiums offsets negative NET INCOME effect from Argentinean peso’s devaluation 3% Theft Combined ratio reaches 105.3% with 88 bps Adjusted* 3% Civil liability RE
Slide 17: Health care segment: current market conditions
HEALTH CARE SEGMENT: CURRENT MARKET CONDITIONS reflect on a high client growth and higher claims ratio NET INCOME COP -16,077 MM REVENUES ON SERVICES COSTS / REVENUES REVENUES ADMIN EXPENSES JUN-19 %V A R JUN-19 JUN-18 COST RATIO: EPS 1,679,571 22.7% 96.2% 91.2% 86.6% 90.0% 196,205 230,571 IPS 300,6
Slide 18: Consolidated Results
C O N S O L I D AT E D R E S U LT S MACHU PICCHU, PERÚ 18
Slide 19: SURA AM: stable business dynamics and return on encaje
SURA AM: stable business dynamics and return on “encaje” drive increase in net income 7% Investment Management Unit TOTAL NET INCOME CLIENTS (CONTRIB. GIS) 4% El Salvador COP 23% Protección 20.2 million 430,372 million (Colombia) TOTAL AUM 31% Chile 1.9% 48.1% COP 458 tn 15.4% ALPHA AND LEADERSHIP I
Slide 20: Operating results
OPERATING RESULTS reflect return on “encaje” and stable growth in fee income OPERATING REVENUES + Var%: +9.4% +93.5% +1048% -12.9% +295.7% +31.6% INSURANCE Local Currencies: +2.5% +93.5% +981% -16.0% +23.9% MARGIN 194,917 (8,122) 32,074 1,547,102 95,587 57,103 COP 1.55 1,175,543 trillion +371,559 MM
Slide 21: Net income growth
NET INCOME GROWTH driven mainly by mandatory pension business C O R P O R AT E SEGMENT +48.0% +56.8% 202,757 1,831 427,111 (7,223) (13,174) (29,547) ADJUSTED ROE*** 272,467 7.3% ADJUSTED ROTE*** 27.7% NET MANDATORY VOLUNTARY ANNUITIES FX EFFECT* OTHER** N UE T .T N E T A INCOME PENSION (CONT. OP.) I
Slide 22: Mandatory pensions: return on encaje and commercial activity
MANDATORY PENSIONS: RETURN ON “ENCAJE”AND COMMERCIAL ACTIVITY overcome impact from lower fees in some countries AUM MÉXICO COP 405 bn 23.7% Alpha and leadership in returns OPERATING REVENUES in main funds PERÚ 16.4% 14.0% Equity method from Protección COP 1.31 bn COLOMBIA Peru: bidding process for n
Slide 23: Voluntary savings business: better growth dynamics during the quarter
Voluntary Savings business BETTER GROWTH DYNAMICS DURING THE QUARTER AUM SAVINGS AND INVESTMENT NET FLOW NET OPERATING REVENUES COP 2.3 bn • A&I: AUM growth offset pressure from COP 31.8 bn RETURNS lower fees COP 186,193 MM 24.2% COP 1.6 bn • IM: 21 funds launched YTD and new insurance mandates vs.
Slide 24: Contacts
CEO: DAVID BOJANINI CFO: RICARDO JARAMILLO Head of IR: JUAN CARLOS GOMEZ jcgomez@gruposura.com.co IR Specialist: ANDRES ZULUAGA azuluagaa@gruposura.com.co (574) 3197039 www.gruposura.com.co 24
Grupo de Inversiones Suramericana — Q2 2019 Earnings Presentation on 6ix