Grupo De Inversiones Suramericana S.a. · BVC:GRUPOSURA
Grupo De Inversiones Suramericana — Grupo SURA — Q4 2023 Earnings Presentation
27 slides from Grupo De Inversiones Suramericana's earnings presentation, March 2024
Slide 1: Quarter Results Presentation Grupo SURA 4Q-2023
Quarter Results Presentation Grupo SURA 4Q - 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
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Slide 4: Grupo SURA closes 2023 with the highest operating profit in its history
Grupo SURA closes 2023 with the highest operating profit in its history Leveraged by higher premiums, commissions, better investment results and lower expense growth than revenue growth Revenues Operating profit 35.5 4.6 29.2 3.7 24.8 21.3 20.9 2.9 18.8 2.5 2.6 1.6 2018 2019 2020 2021 2022 2023 2018
Slide 5: Adjusted net income for 2023 reached COP 2.7 Bn
Adjusted net income for 2023 reached COP 2.7 Bn Mainly explained by the growth of SURA AM and Suramericana Net income Controlling net income 3,00 0 3,00 0 2,736 2,345 119 2,50 0 2,318 2,075 97 2,50 0 682 2,00 0 2,00 0 1,719 682 1,455 1,525 1,935 1,526 1,50 0 1,409 1,187 1,50 0 1,00 0 1,00 0 1,540 33
Slide 6: Portfolio Management
Portfolio During 2023 Grupo SURA and its subsidiaries conducted a portfolio Management focalization in participations, industries and regional presence. Suramericana - Argentina and El Salvador Nutresa - Grupo SURA Exchange The closing of both transactions was completed during the last quarter, for
Slide 7: Highlights
Highlights S&P Global Sustainability Rating Yearbook In January, Fitch Ratings Grupo SURA was the only Latin American company ratified our international in the Diversified Financial rating at BB+ and our local Services industry to be rating at AAA, highlighting a included in the Dow Jones solid inve
Slide 8: Suramericana 2023
» > uramericana — 2023 AW
Slide 9: Adjusted net income increased 29% in 2023
Adjusted net income increased 29% in 2023 As a result of the good operating performance of Property and Casualty and Life in addition to higher investment income WRITTEN PREMIUMS TECHNICAL RESULT +14% -2% Claims ratio.* 28,543 1,748 25,036 1,719 +5% -8% 73.1% vs 71.5% Dec 2022 7,338 7,696 556 512 Ad
Slide 10: Life segment premiums grow 13% in 2023
Life segment premiums grow 13% in 2023 While 4Q growth stands at 8.1% Investment income • Up 13% in 2023 closing at COP 8 trillion. Premiums • Increased 8% in 4Q driven by Healthcare, ARL, 2, 000 1,803 and new business in Chile. 1,800 1,600 1,400 1,247 1,200 • Closes at 67.1% in 2023, an increase of
Slide 11: Property and casualty cumulative net income increases 98% in 2023
Property and casualty cumulative net income increases 98% in 2023 As a result of lower claims ratio and higher investment income Voluntary Autos claims ratio • Increased by 7% during 2023, reaching COP 11.3 trillion. Premiums Decreased 7% in 4Q due to lower sales of SOAT and 80.0% • multiyear polici
Slide 12: EPS (Health Segment) recorded losses for the year
EPS (Health Segment) recorded losses of COP 224 thousand million for the year By continuing to reflect a challenging environment with high claims rates in the EPS sector Evolution of Health Segment Net Profit and EPS Claims ratio • 24% increase in the year-to-date and in the 200 108% Premiums quarte
Slide 13: Suramericana's net income reaches COP 512 billion
Suramericana's net income reaches COP 512 billion Excluding the effects of the sale of Argentina and Salvador, it would be 631 thousand million, up 29% +141 Bn Var. +29% +22 Bn Var. +5% + COP 345 billion Includes investments of COP 50 billion in Vaxthera and Sura Tech. Amounts in COP billions Admini
Slide 14: Suramericana 2023 Results and 2024 Guidance
Suramericana 2023 2024 +14.0% 12% - 15% 2023 Results and Written Premiums Insurance*: 10% -12% vs +13% - 16% 2024 Guidance Health: 16% - 19% 74% - 76% Claims Ratio 73.1% Insurance*: 57%-59% vs 72% - 74% Health: 97%-98% Adm. Expenses/ 11.4% 11% - 12% Written Premiums vs 11% - 12% Adjusted ROE 10.5% 8
Slide 15: SURA AM 4Q-2023
SURA AM 4Q - 2023
Slide 16: SURA AM's adjusted ROE closes at historically high 8.8%
SURA AM's adjusted ROE closes at historically high at 8.8% Explained by a net income that closed at COP 902 billion due to AyR's better operating performance and higher yields on reserve requirements COMMISSION INCOME OPERATING EXPENSES AUM Dec23* +12% +10% +5%* +3% +4%* 672trillion -0% +14.4% 4,060
Slide 17: Savings and Retirement pro forma fee income up 7% in 2023
Savings and Retirement pro forma fee income up 7% in 2023 Linked to base salary growth and higher AUM due to higher investment returns during 2023 Salary base (COP trillion) Fx neutral • Increases 13% for the year due to higher AUM 50.0 46.3 contributions and good performance in financial 44.7 45.3
Slide 18: The Voluntary segment continues to face a challenging environment
The Voluntary segment continues to face a challenging environment Due to lower commission rates associated with changes in the product and portfolio mix, which we sought to mitigate with strict expense control Variation AUM (COP Trillion) FX neutral • Up 20.4% due to higher net cash flow and yield A
Slide 19: Controlling net income increases 466 billion
Controlling net income increases 466 billion Driven by positive performance of the Savings and Retirement segment +461 Bn Var. +104% Amounts in COP billions Operating expenses include operating and administrative expenses, selling expenses and acquisition costs. Other includes the corporate segment
Slide 20: SURA Asset Management 2023 Results and 2024 Guidance
2023 2024 SURA Asset Mangement 2023 Results and 14.4% 9% - 11% AUM vs +9% - 11% 2024 Guidance Commission 31.8% 8% - 10% income vs 26% - 29% Adjusted ROE 8.8% 7% - 8% vs 6% - 7% Adjusted ROTE 27.8% 17% - 21% vs 17% - 21% Consolidated metrics Adjusted ROE : excludes acquisition-related intangible amor
Slide 21: Grupo SURA 4Q-2023
Grupo SURA 4Q - 2023
Slide 22: Equity method for the year reached COP 1.8 trillion
Equity method for the year reached COP 1.8 trillion Reflecting a decrease due to the non-recognition of Nutresa, and the decrease in Bancolombia’s net income BANCOLOMBIA GRUPO ARGOS GRUPO NUTRESA + SOCIEDAD PORTAFOLIO -10% 1,661 291 1,498 235 +116% -12% 142 156 53 402 72 34 - 355 3 -27 4T22 4Q22 4T2
Slide 23: Recurring controlling interest net income grew 12%
Recurring controlling interest net income grew 12% Reflecting good investment portfolio performance RESULTS EXCLUDING NON-RECURRING ITEMS Controlling Net Income + 12% COP 3.4 Trillion -10% +116% +140% +5% Impacts Adjusted GIS Admin. GIS Controlling Non-recurring Suramericana Sura AM Bancolombia Grup
Slide 24: Cash flow projections
Cash flow projections Assuming 100% of the tender offer in cash Dividends received | Net Debt / Dividends Operating Cash Flow*. 6.6x 1.98 1.83 1.85 6.0x 1.73 5x 3.9x 4.4x 4.4x 3.1x 3.6x 3.9x 1.15 4.1x 1.04 1.05 1.0 1.0 0.9 0.82 0.8 0.6 0.6 0.67 0.6 0.4 0.3 5.6 2018 2019 2020 2021 2022 2023 2024E 202
Slide 25: Group SURA's guidance
Group SURA´s guidance Net income per share 2023 2024E 2025E 12,000-13,000 Net income per share(COP) 4,100 - 4,600 5,100 - 5,600 Normalized net income per share (COP)* 4,002 2,658 Total company figures (COP $Tn) Recurring controlling net income.* 2.3 1.6 - 1.8 2.0 - 2.2 Divestment Argentina and Salva
Slide 26: Adjusted ROE closed the year at 10.2%, exceeding initial expectations
Adjusted ROE closed the year at 10.2%, exceeding initial expectations 110,000 0.1 11.0% 100,000 10.0% 90,000 0.1 10.2% 10.0% 9.9% 9.7% 9.1% 9.0% 80,000 0.1 7.9% 68,000 70, 000 64,000 0.1 58,229 65,000 60,000 61,000 52,487 48,185 50,000 0.0 44,051 43,369 42,053 40,000 0.0 2.0% 30,000 0.0 20,000 2018
Slide 27: The Board of Directors proposed a dividend with growth of 9.4% vs. 2023
The Board of Directors proposed a dividend with growth of 9.4% vs. 2023 Real growth vs. 2.1% 3.0% 2.2% 1.8% 24.4% 50.1% 0.1% previous year's inflation 2000 200.0% 63.3% 30.0% 9% 6.1% 6.2% 6.0% 1800 3.4% 0.0% 1600 1400 1400 1280 -200.0% 1200 1000 -400.0% 800 784 634 603 1400 1280 -6 00.0% 600 518 550