Grupo De Inversiones Suramericana S.a. · BVC:GRUPOSURA
Grupo De Inversiones Suramericana — Q2 2020 Earnings Presentation
19 slides from Grupo De Inversiones Suramericana's earnings presentation, August 2020
Slide 1: Quarterly results presentation Grupo SURA Q2 2020
Quarterly results presentation Grupo SURA Q2 2020
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: COVID-19 Update Financial Results
COVID-19 Update Financial Results
Slide 4: COVID-19 Crisis Management and Recent Highlights
COVID-19 CRISIS MANAGEMENT AND RECENT HIGHLIGHTS SOCIETY CLIENTS & BUSINESS EMPLOYEES Working together to be part of the Preserve their wellbeing Moment to be relevant solution RISKS AND OPPORTUNITIES FINANCIAL Update on risks and opportunities Focus on liquidity and solvency 4
Slide 5: COVID-19 Crisis Management and Recent Highlights
COVID-19 CRISIS MANAGEMENT AND RECENT HIGHLIGHTS EMPLOYEES CLIENTS AND BUSINESS Preserve their wellbeing Moment to be relevant +1,500 new hires of health professionals in Suramericana Colombia. Covid-19 tests: +200,000 tests processed (~ 13% of the country's total) and a 200% increase in daily proce
Slide 6: COVID-19 Crisis Management and Recent Highlights
COVID-19 CRISIS MANAGEMENT AND RECENT HIGHLIGHTS RISKS AND OPPORTUNITIES FINANCIAL Update on risks and opportunities Focus on liquidity and solvency Increase in sales effectiveness. We maintain capital above regulatory requirements and focus on preserving liquidity Suramericana Grupo SURA • Payment
Slide 7: Evolution of Revenues Shows Partial Recovery in June
EVOLUTION OF REVENUES SHOWS PARTIAL RECOVERY IN JUNE P&C SEGMENT (var% vs. same month of 2019) LIFE SEGMENT (var% vs. same month of 2019) 20% 80% 10% 60% 0% 40% -10% 20% -20% 0% -30% -40% -20% -50% -40% feb-20 mar-20 abr-20 may-20 jun-20 feb-20 mar-20 abr-20 may-20 jun-20 Car Mandatory Car Total P&C
Slide 8: Cash Flow Management – Holding Company
CASH FLOW MANAGEMENT – HOLDING COMPANY Successful bond issue allows early management of 2021 maturities DEBT PROFILE AFTER ISSUANCE» » NET DEBT INDICATORS Figures in COP billion 1,859 COP 4.5 bn NET DEBT/ DIVIDENDS (12M) » % USD DEBT 1,022 (NET OF HEDGING) 3.9x 425 718 6% Max. 5x 296 289 300 166 100
Slide 9: Resilient Growth in Main Business Lines
RESILIENT GROWTH IN MAIN BUSINESS LINES Despite recovery in Q2, net income is still affected by market returns CONSOLIDATED INCOME STATEMENT jun-20 jun-19 Var$ Var% Retained premiums 5,374 5,329 45 0.9% • Growth in revenues from premiums, commissions Commission income 1,352 1,334 18 1.3% and service
Slide 10: Net Income Reflects Recovery in Q2
NET INCOME REFLECTS RECOVERY IN Q2 Return on encaje and equity method cotinue impacting results for 1H 2020 CONTRIBUTION TO 1H 2020 NET INCOME Grupo SURA and other COP -319 Var% vs. 1H 2019 +68% -39% NA -72% -948% +6% +14% +3% -74% 152 130 (80) (42) (10) 293 245 (194) (3) Suramericana SURA AM excl.
Slide 11: Net Income Adjusted for Market Effects
NET INCOME ADJUSTED FOR MARKET EFFECTS Decreases by 54% due to a lower contribution from the equity method ∆SURA AM ∆Grupo SURA and other COP -310 COP -116 119 951 (83) 723 (228) -54% 335 (398) 245 (89) (2) (24) (0) 2019 Net 2019 Net ∆ Net Income ∆ Net Income ∆ Encaje SURA ∆ Equity ∆ Fx Impact** ∆ A
Slide 12: Suramericana 1H 2020 Results
Suramericana 1H 2020 Results
Slide 13: Results Driven by Lower Claims Ratio
RESULTS DRIVEN BY LOWER CLAIMS RATIO And expense control that compensate impacts associated to the pandemic COP OPERATING REVENUES RETAINED EARNED PREMIUMS REVENUES SERVICES RENDERED 1H 2020 8.8 tn 10.5% CLAIMS RATIO (%REP) % COST OF SERVICES jun-20 jun-19 Var% 53% 55% 55% 54% 54% 93% 97% 93% 92% 94
Slide 14: Positive Contribution from All Operating Segments
POSITIVE CONTRIBUTION FROM ALL OPERATING SEGMENTS To Suramericana’s consolidated net income CONTRIBUTION TO 1H 2020 NET INCOME Var% vs. 1H 2019 -1% +288% N/A +6% +5% +189% +128% +68% 166 1 (45) 20 293 (39) 231 (41) Life P&C Health Care Operating Interest Expense Taxes Other Net Income 2020 Expenses
Slide 15: Increase in Net Income
INCREASE IN NET INCOME Explained by better operating results Var% written premiums +7.0% +7.5% +21.5% HOLDING AND COP -19,653 MM Claims ratio ´19/´20 60.1% / 54.2% 51.5% / 47.7% 90% / 90.1% OTHER +288% +68% 17 123 11 293 (2) (2) (27) -1.0% 174 (2) 2019 NET LIFE P&C HEALTH ADMIN. INTEREST TAXES OTHER
Slide 16: SURA Asset Management 1H 2020 Results
SURA Asset Management 1H 2020 Results
Slide 17: Resiliency in Commission Income Thanks to AUM Growth
RESILIENCY IN COMMISSION INCOME THANKS TO AUM GROWTH Return on legal reserve recovers from Q1-2020 loss, but is still lower than 1H 2019 COMMISSION INCOME INCOME FROM LEGAL RESERVE (ENCAJE) 573 577 597 577 Q2-2020 Q2-2019 Var% Var% LC 544 539 284 Commission income 1,116 1,118 -0.2% -2.0% Income from
Slide 18: Net Income Impacted by Mandatory Pension Business
NET INCOME IMPACTED BY MANDATORY PENSION BUSINESS Due to lower return on legal reserves Var% Commission income -1.8% +14.2% HOLDING AND AUM (COP tn) / Var% 437 / +7.7% 57.5 / +9.3% OTHER +7,475 MM 424 40 133 (19) (293) (14) (6) 2019 Net income Mandatory Voluntary savings Financial result Income tax
Slide 19: Investor relations contacts
CEO: GONZALO PÉREZ CFO: RICARDO JARAMILLO IRO: JUAN CARLOS GÓMEZ jcgomez@gruposura.com.co IR Specialist: ANDRÉS ZULUAGA azuluagaa@gruposura.com.co (574) 3197039 https://www.gruposura.com/en/investor-relations/reports/
Grupo de Inversiones Suramericana — Q2 2020 Earnings Presentation on 6ix