Grupo De Inversiones Suramericana S.a. · BVC:GRUPOSURA
Grupo De Inversiones Suramericana — Grupo SURA — Q1 2023 Earnings Presentation
26 slides from Grupo De Inversiones Suramericana's earnings presentation, May 2023
Slide 1: Quarter Results Presentation Grupo SURA 1Q-2023
Quarter Results Presentation Grupo SURA 1Q - 2023
Slide 2: Disclaimer
The forward-looking statements contained herein are based on Management’s current forecasts and outlook, which have been made under assumptions and estimates of the management of the Companies and may present variations. For better illustration and decision-making, figures for Suramericana, SURA Ass
Slide 3: Language selection
Selección de idioma Language selection Para cambiar de idioma haga clic en icono de su preferencia. To change the audio language click the icon.
Slide 4: Highest Controlling Net Income recorded by the company
Highest Controlling Net Income recorded by the company Driven by record total revenues in the quarter TOTAL REVENUES OPERATING PROFIT CONTROLLING NET INCOME 9,569 +39% +80% +94% 2,000 1,200 1,800 6,909 1,600 1,388 834 1,000 1,400 800 1,200 771 1,000 429 600 800 400 600 400 200 200 - - 1Q22 1Q23 1Q22
Slide 5: All the companies of the portfolio contribute positively to controlling net income
All the companies of the portfolio contribute positively to controlling net income. PORTFOLIO DISTRIBUTION VARIATION By sector SURA AM Suramericana 17% Financial 26% +115% Nutresa 9% 1Q 2023 6% Industrial Argos Bancolombia +271% 42% The distribution of the portfolio takes the profits generated by ea
Slide 6: Balanced capital management
Balanced capital management NATURAL CAPITAL Human Social Capital Capital It is the set of natural resources that interact through complex relationships (ecosystems) to generate a flow of benefits for Sustainable people (ecosystem services). Profitability By making direct use of these services and en
Slide 7: Our vision in Natural Capital
Our vision in Natural Capital Focus, progress and challenges Dimensions of natural capital management Own operation: • Indicators with coverage of more than 75%. Institutionality • Average reduction of 6% per year in carbon intensity. Capital allocation and portfolio management Products and Capital
Slide 8: Relevant topics to understand the Quarterly Results
Relevant topics to understand the Quarterly Results Variation 1Q23 vs 1Q22 | Closing rates ( ) / Average ( ) 1. Higher devaluation of the Colombian peso against the rest of the region's currencies. COP/MXN 36% COP/UYU 32% 2. Countries other than Colombia account for 30% of Suramericana's USD/COP 24%
Slide 9: Suramericana
Suramericana 1Q - 2023
Slide 10: Segment mix has changed over the last few years
Segment mix has changed over the last few years Health segment gaining weight with respect to other segments DISTRIBUTION BY COUNTRY DISTRIBUTION BY SEGMENTS Written Premiums Written Premiums 1Q23 1Q23 2% 2% 2% 2% Colombia Chile 3% 4% Mexico 5% 35% 38% Argentina P&C Brasil 10% 2023 Life 2023 Uruguay
Slide 11: Net income for the quarter reaches historic highs
Net income for the quarter reaches historic highs Explained by double-digit premium growth, stable claims and improved investment income PREMIUMS* & RETAINED CLAIMS.** (%) TECHNICAL RESULT 72% 73% 74% 70% 72% 80% +1% Op. Expenses ratio*** +26% 7,943 401 405 12.4% 7,018 60% 6,663 6,855 VS 1Q22 5,583
Slide 12: Life segment net income increases 97%
Life segment net income increases 97% Driven by good dynamics in written premiums as well as investment portfolio performance due to inflation exposure RETAINED EARNED UNDERWRITTING PROFIT & NET INCOME PREMIUMS (%) INVESTMENT INCOME +20% 1,861 +86% +97% 1,555 540 291 291 148 (153) (271) 1Q22 1Q23 1Q
Slide 13: P&C claims continue to improve
P&C claims continue to improve Mainly explained by mobility solutions, which, together with higher investment income, explain the increase in net income. PREMIUMS COMBINED RATIO / RETAINED NET INCOME EARNED PREMIUM 2,790 110% 111% +29% 105% 103% 2,163 12% 13% +391% 13% 14% 23% 22% 50 21% 20% 20% 18%
Slide 14: Healthcare segment net income closes in positive territory
Healthcare segment net income closes in positive territory Driven by lower EPS claims and higher investment income WRITTEN PREMIUMS CLAIMS RATIO* & EXPENSES** NET INCOME 2,608 +24% 155 2,111 245 102% 101% 165 7% 7% 65 207 2,208 93% 92% 1,739 1Q22 1Q23 (2) 1Q22 1Q23 Mandatory Health Care subsidiary (
Slide 15: Improved performance in all segments during the quarter
Improved performance in all segments during the quarter Contributed to Suramericana's net income growth of 221%. 219 billion Var. 221% Figures in COP billions Administrative expenses include administrative expenses, fees and amortization and depreciation of the corporate segment. Others include the
Slide 16: SURA AM
SURA AM 1Q - 2023
Slide 17: SURA AM has benefited from Colombian peso devaluation
SURA AM has benefited from Colombian peso devaluation Given the greater exposure to Latin American currencies DISTRIBUTION BY COUNTRY DISTRIBUTION BY SEGMENT Commission Income Commission Income 1Q23 1Q23 2% 5% 15% 12% Mexico 31% Chile Mandatory Segment Colombia Peru 2023 2023 19% Voluntary Savings E
Slide 18: Improvement in the company's profitability levels
Improvement in the company's profitability levels Positive performance in commission income, reserve recovery and operational efficiencies COMMISSION INCOME OPERATING EXPENSES Yield ** +25% +25% 1,067 7.7% 854 845 678 609 466 Op. Expense ratio (%) * 76% vs 77% 1Q22 1Q22 1Q 22 Prof. 1Q23 1Q22 1Q 22 P
Slide 19: Improvement in the operating result of the Savings and Retirement Segment
Improvement in the operating result of the Savings and Retirement Segment Explained by growth in commission income, expense control and improved reserve performance COMMISSION INCOME OPERATING EXPENSES RETURN ON LEGAL RESERVE & OPERATING INCOME 63% 55% 58% +28% 904 506 707 +19% Var. % Op. Income +22
Slide 20: Voluntary segment continues to be pressured by rate environment
Voluntary segment continues to be pressured by rate environment With portfolio repositioning towards fixed income assets with lower commissions and greater competition from banks COMMISSION INCOME OPERATING EXPENSES OPERATING INCOME +9% 108% 96% 99% -14% +16% 160 166 146 143 115 30 100 26 15 1Q22 1Q
Slide 21: Net income by segments
Net income by segments Reversal of the loss with respect to the previous year generating an improvement in profitability levels 253 billion Figures in COP billions Operating expenses include operating and administrative expenses, selling operating expenses and acquisition costs. Others include the c
Slide 22: Grupo SURA
Grupo SURA 1Q - 2023
Slide 23: Associated companies continue to show good results
Associated companies continue to show good results With a focus on the increase of Grupo Argos and good results at Bancolombia and Grupo Nutresa. BANCOLOMBIA GRUPO NUTRESA GRUPO ARGOS -1% -11% 424 420 105 94 +263% 57 16 1Q22 1Q23 1Q22 1Q23 1Q22 1Q23 Equity Method Var% vs 1Q 2022 575 billion +6% 2323
Slide 24: Grupo SURA's net income reflects positive contribution from its businesses
Grupo SURA's net income reflects positive contribution from its businesses Achieving the highest quarterly controlling net income ever recorded by the company 405 billion +263% -11% -1% Var. 94% +221% *Other includes Arus, Habitat, Sura Ventures, Adjustments and eliminations and Exchange impact corr
Slide 25: Cash Flow
Cash Flow Growth in received dividends improves cash flow Diversification in received dividends Received Dividends increase by 48% vs 2022 Last 5 years CAGR: 12.6% Grupo Nutresa 1,665 Grupo Argos 12% 1,049 1,125 8% Bancolombia 1,035 669 48% SURA AM 18% 13% 2019 2020 2021 2022 2023E Suramericana Cash
Slide 26: Debt
Debt Flexibility in debt management given cash flow generation Debt Profile Debt Composition 1,795 Net Debt / Dividends (LTM) <3x Average cost of debt 14 .6% vs 9.4% in 1Q 22 604 533 IBR 227 296 289 300 19% 100 180 98 - - - - 2023 2024 2025 2026 2027 … 2029 2030 … 2032 … 2040 … 2049 FR Banks Local B