Grupo De Inversiones Suramericana S.a. · BVC:GRUPOSURA
Grupo De Inversiones Suramericana — Q4 2019 Earnings Presentation
24 slides from Grupo De Inversiones Suramericana's earnings presentation, March 2020
Slide 1: Q4 2019 Results Presentation
Q4 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 Investments 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: Excellent results with record high net income
EXCELLENT RESULTS WITH RECORD HIGH NET INCOME Driven by operating dynamics and investment income OPERATING OPERATING INCOME ADVANCES IN STRATEGY REVENUES COP 3.0 tn • Improvement in profitability COP 19.5% + 55 bps Adjusted ROE 21.9 tn NET INCOME 13.3% • Optimization of invested capital COP 1.7 tn 2
Slide 6: Share repurchase proposal
SHARE REPURCHASE PROPOSAL Additional tool for financial management AMOUNT: Up to COP 300,000 MM RATIONALE Optionality: Management tool that can be used when conditions are TERM: Up to 3 years appropriate Undervalued share price: PROPOSAL FOR AGM: Market price doesn´t reflect estimated portfolio valu
Slide 7: Debt reduction, higher value of investments
DEBT REDUCTION, HIGHER VALUE OF INVESTMENTS And net income contribution explain the increase in net income STATEMENT OF FINANCIAL POSITION DEC - 19 DEC - 18 Var$ Var% Cash, investments and investment 26,498 24,731 1,766 7.1% properties Investments in associates 19,966 19,170 796 4.2% Intangibles and
Slide 8: Debt reduction on a consolidated and individual level
DEBT REDUCTION ON A CONSOLIDATED AND INDIVIDUAL LEVEL In line with deleveraging and capital optimization plan CONSOLIDATED FINANCIAL DEBT INDIVIDUAL FINANCIAL DEBT 15% USD Suramericana 10% vs. 32.9% in Q2-2017 COP 49% COP Grupo SURA 36% SURA AM 9.4 tn and other subsidiaries 4.6 tn 3.3% 7% COP 90% DE
Slide 9: Net income growth
NET INCOME GROWTH Drives increase in consolidated profitability ESTADO DE RESULTADOS CONSOLIDADO DIC - 19 SEP - 18 Var$ Var% Retained premiums 11,219 10,735 484 4.5% ADVANCES IN PROFITABILITY PLAN Commission income 2,734 2,504 230 9.2% Revenues from services rendered 4,027 3,293 733 22.3% Investment
Slide 10: Consolidated net income grew 27.9%
CONSOLIDATED NET INCOME GREW 27.9% Explained by results from SURA AM and equity method from associates GRUPO SURA & OTHER * COP +68,958 MM +27.9% +9.3% +95.4% 56,451 23,637 23,838 1,718,678 87,328 353,991 (13,029) (21,939) -25.6% 1,343,286 (134,540) PARENT COMPANY’S NET INCOME COP 1.5 tn 29.0% NET N
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 revenue growth
SURAMERICANA CONTINUES WITH POSITIVE REVENUE GROWTH But specific impacts in Argentina, Chile and Health sector in Colombia affected net income Written premiums Revenues from Net Income Advances in strategy services rendered COP • Empresas SURA COP COP 13.3 tn 3.8 tn 390,327 MM 8 countries 8 attentio
Slide 13: Higher health care costs and non-comparable impacts
HIGHER HEALTH CARE COSTS AND NON-COMPARABLE IMPACTS Affected financial results CLAIMS + ADJ. RESERVES: SERVICES RENDERED: TECHNICAL RESULT: % RET. PREMIUMS COSTS / REVENUES % OPERATING REVENUES 5,804,236 2,888,544 3,636,062 2,408,455 2,396,776 5,232,046 WRITTEN PREMIUMS + 93.9% 92.2% REVENUES FROM S
Slide 14: Lower net income due to specific negative impacts
LOWER NET INCOME DUE TO SPECIFIC NEGATIVE IMPACTS Despite the positive operating dynamics and organic growth C O R P O R AT E COP +4,148 MM SEGMENT +10.2% 51,702 -115% 524,867 NET INCOME EXC. -25.6% -69% ARGENTINA (143,085) 52,703 390,327 (47,305) (1,097) (2,534) COP (44,924) 477,686 MM 10.4% NET LI
Slide 15: Life segment: highest net income contributor
LIFE SEGMENT: CONTINUES AS HIGHEST NET INCOME CONTRIBUTOR with positive operating and investment results 8% 13% Other Individual Life NET INCOME 2019FY +7.6% +3% Capital optimization effect on premiums 2019 “premium = collection” COP 557,886 MM 32% Workers´ Comp RETAINED PREMIUMS 20% Group Life VAT
Slide 16: P&C segment: Argentina and Chile
P&C SEGMENT: ARGENTINA AND CHILE Negatively impacted the segment’s results RETAINED PREMIUMS BY COUNTRY dic-19 %Var COP % Var ML Colombia 1,793 8.5% 8.5% NET INCOME 2019FY Chile 924 -20.4% -21.5% Argentina 721 -14.3% 33.9% Protests: COP -40,000 MM due to an Adjusted* México 760 51.6% 36.7% increase
Slide 17: Health care segment: Q4 results
HEALTH CARE SEGMENT: Q4 RESULTS reflect a stabilization in claims ratio and positive effects from cost control initiatives FY 2019 Q4-2019 REVENUES ON SERVICES COSTS / REVENUES NET INCOME COP 21,141 MM COP 19,155 MM 69% 138% DEC-19 %V A R DEC-19 DEC-18 EPS 3,571,561 25.1% 94.3% 92.3% IPS 621,530 15.
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: net income grows 66%
SURA AM: NET INCOME GROWS 66% Driven by return on legal reserve and operating results 7% Investment CLIENTS NET INCOME Management (CONTINUED OP.) 4% El Salvador 20.5 million COP 23% Protección 29% Chile 3.7% 716,817 million AUM TOTAL 252,000 Peru bidding 65.8% COP process 483 bn 15.5% 2% Uruguay 21%
Slide 20: Growth in all revenue lines
GROW IN ALL REVENUE LINES And better investment returns drive a 75% growth in operating earnings OPERATING REVENUES + Var%: +9.7% +114.1% +2533% +62.0% +361.4% +35.1% INSURANCE Local currencies: +2.9% +113.6% +2716% +55.6% +324.3% +27.4% MARGIN 95,669 60,611 3,216,815 355,564 203,183 121,361 COP 3.2
Slide 21: Net income growth driven by mandatory pension business
NET INCOME GROWTH DRIVEN BY MANDATORY PENSION BUSINESS Offseting higher tax expenses C O R P O R AT E SEGMENT -101,933 MM +47.8% 95,316 +65.8% (10,364) 13,898 (18,261) 382,894 25,772 716,817 ADJUSTED ROE*** (204,759) 8.7% 432,321 ADJUSTED ROTE*** 31% NET INCOME MANDATORY VOLUNTARY ANNUITIES FX EFFEC
Slide 22: Mandatory pension: return on legal reserve and commercial activity
MANDATORY PENSION: RETURN ON LEGAL RESERVE AND COMMERCIAL activity overcome pressure on lower fees AUM MEXICO 25.3% 252,000 new affiliates OPERATING REVENUES COP 427 bn PERU Fee reduction 16.5% 13.6% COP 2.6 bn COLOMBIA High investment yield benefits clients and return on legal reserves SALARY BASE
Slide 23: Voluntary segment with operating leverage
Voluntary segment with operating leverage COMMERCIAL PRODUCTIVITY DRIVES NET FLOW AND REVENUES AUM SAVINGS & INVESTMENTS FLUJO NETO NET OPERATING REVENUES • S&I: better commercial productivity COP 5.1 bn COP 35.0 bn RENDIMIENTO • 16 new investment products COP 399,184 MM 25.8% COP 2.6 bn • IM: launc
Slide 24: Investor relations contacts
CEO: DAVID BOJANINI CFO: RICARDO JARAMILLO Gerente IR: JUAN CARLOS GOMEZ jcgomez@gruposura.com.co Especialista IR: ANDRES ZULUAGA azuluagaa@gruposura.com.co (574) 3197039 www.gruposura.com.co 24
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