Grupo De Inversiones Suramericana S.a. · BVC:GRUPOSURA
Grupo De Inversiones Suramericana — Investor Presentation (2017)
60 slides from Grupo De Inversiones Suramericana's investor presentation, 2017
Slide 1: Corporate Presentation 1Q 2017
CORPORATE PRESENTATION 1Q 2017 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 accountant, and therefore may differ
Slide 3: Highlights
HIGHLIGHTS» 01 04 USD 7.8 bn MEXICO Market Cap GUATEMALA DOMINICAN Group of leading financial REPUBLIC Outstanding SALVADOR PANAMA services companies in Latam brand recognition 47 million COLOMBIA Clients* PERU BRAZIL Assets managed by our 02 05 strategic investments * » CHILE COP 542 tn ARGENTINA U
Slide 4: Industry and Geographic Diversification
I N D U S T R Y A N D G E O G R A P H I C D I V E R S I F I C AT I O N » Diversified financial services portfolio Geographic diversification Country Clients Revenues Net Income Assets COLOMBIA 25.3 50.1% 44.3% 54.2% CHILE 3.3 21.6% 26.6% 22.3% Banking MEXICO 7.6 9.1% 14.6% 4.6% Pension, AM & WM PERÚ
Slide 5: Investment Portfolio
INVESTMENT PORTFOLIO » STRATEGIC INVESTMENTS INDUSTRIAL INVESTMENTS CORPORATE VENTURE In alliance with Veronorte 81.1% 83.6% 46.4% 35.2% 35.7% GROWTH INVESTMENTS Insurance, Trends Pensions, Asset and Universal Processed Food Cement, Energy and Risk Management Wealth Management Banking and Infrastruc
Slide 6: Large Client Base in Attractive Markets
L A R G E C L I E N T B A S E I N AT T R A C T I V E M A R K E T S » SURAMERICANA » SURA ASSET MANAGEMENT» BANCOLOMBIA » • +14 million clients in 9 countries. • 19.2 million clients in 6 countries. • 12 million clients • #1 Insurance company in Colombia • #1 Pension Fund in Latam with 23% • #1 Bank
Slide 7: History & Growth Stages
H I S T O R Y & G R O W T H S TA G E S » 1944 / 1990 1990 / 2007 2007 / 2016 2017 INSURANCE FINANCIAL INTERNATIONAL FOOTPRINT LEADERSHIP SERVICES EXPANSION OPTIMIZATION in Colombia group leader in Colombia Multi Latin, financial services group 7
Slide 8: Investment Portfolio 2010 vs 2017
INVESTMENT PORTFOLIO » 2010» 2017» 25.3% Bancolombia 37% Bancolombia 3% Protección 26.1% Sura Asset Suramericana Management 6% USD 6.1 Bn 24% Grupo Nutresa 13.0% Suramericana 29% Grupo Argos USD 8.7 Bn 16.1% Grupo Nutresa 1% Other 19.0% Grupo Argos 46% in Financial Services Otros 0.5% 65% in Financi
Slide 9: Strategic Guidelines
S T R AT E G I C G U I D E L I N E S » COMPREHENSIVE RANGE OF SERVICES AND SYNERGIES INNOVATION GEOGRAPHIC Development of our AND NEW BUSINESS EXPANSION AND MARKET Corporate Role » VENTURES DEVELOPMENT Executive Committee CREATING ADDED • CEOs from strategic investments • Long-term strategy CORPORAT
Slide 10: Innovation and New Business Ventures
I N N O V AT I O N A N D N E W B U S I N E S S V E N T U R E S » ALLIANCES Identify challenges of the digital age for our businesses, and partner for the development of specific projects, that help us make the transition together towards the future. » Big Data & Analytics » Blockchain » Identity STA
Slide 11: Comprehensive Range of Services and Synergies
COMPREHENSIVE RANGE OF SERVICES AND SYNERGIES » ($) Wealth + Life Cycle – Universal Mandatory P&C Mandatory Voluntary Life Insurance Mutual Securities Programmed Annuities Banking Pensions Insurance Health Savings and Savings Funds Withdrawal ACCUMULATION PHASE DE-ACCUMULATION PHASE 11
Slide 12: From Labor Cycle to Generational Cycle
FROM LABOR CYCLE T O G E N E R AT I O N A L C Y C L E » PERSONAL WEALTH Wealth Cycle ACCUMULATION DE-ACCUMULATION Life Cycle 0 – 17 18 – 26 27 – 36 37 – 46 47 – 55 56 – 65 65 + Mandatory Pensions Voluntary Savings Investments Asset Management Loans Payments Mandatory Insurance Voluntary Insurance 12
Slide 13: Geographic Expansion and Market Development
MEXICO G E O G R A P H I C E X PA N S I O N #24 AND MARKET DEVELOPMENT» #3 DOMINICAN REPUBLIC GUATEMALA #5 #4 COLOMBIA EL SALVADOR #1 #2 PANAMA #1 #1 #4 #2 #2 #2 PERU #1 BRAZIL CHILE #22 #1 in P&C #4 Strategic Investments ARGENTINA URUGUAY #12 #2 Number below each country corresponds to ranking in t
Slide 14: Corporate Governance: Shareholders
CO RPO RAT E G O VERNANCE C O R P O R AT E G O V E R N A N C E » SHAREHOLDERS» 33.6% 27.4% Grupo Argos Total Outstanding Shares* 12.7% 10.3% Grupo Nutresa Colombian Pension 581,977,548 18.7% 25.1% Funds (COMM) (COMM + PREF) Outstanding Outstanding 21.0% 21.8% International Funds Common Shares Pref.
Slide 15: Corporate Governance: Sustainability and Board Composition
CO RPO RAT E G O VERNANCE C O R P O R AT E G O V E R N A N C E : S U S TA I N A B I L I T Y A N D B O A R D C O M P O S I T I O N » HIGH CORPORATE STANDARDS Code of Good Governance in accordance with international practices. The Board of Directors has 7 members of which 4 are independent. The chairm
Slide 16: Sound Reputation and Brand Strength
SOUND REPUTATION SO UND REPUT AT I O N AND BRAND STRENGTH» AND BRAND ST RENG T H DOMINICAN REPUBLIC 2016: 21 MEXICO 2016: 51.4 2016: PANAMA COLOMBIA 60% 2016: 59 2016: 81 2014: 48% PERU SURA´S BRAND AWARENESS» 2016: 29.2 has surpassed the 50% threshold in all but one of the CHILE URUGUAY countries w
Slide 17: Strong Financial Position: Dividend Evolution
STRONG FINANCIAL POSITION » Dividend evolution » 348 282 300 3x Bancolombia 2010 Dividends 208 SURA AM 190 Grupo Argos 154 *Calculation done in a proforma basis Grupo Nutresa 102 105 Source: each of the companies’ annual report. Protección Estimates done by Grupo SURA Suramericana Figures in USD Mil
Slide 18: Operating Cash Flow and 2017 Dividend Distribution
STRONG FINANCIAL POSITION » O P E R AT I N G C A S H F L O W Grupo SURA generates close to USD 125 million for debt, dividend payment and investments 2017 DIVIDEND DISTRIBUTION » 2017E (1) 63 86.6% Dividend paid in 125 preferred shares 312 249 125 USD 15 million Dividend paid in Dividends and Other
Slide 19: Debt
DEBT» GRUPO SURA Banks Debt maturity profile » 550 International Bonds 23.4% Banks 300 Local Bonds TYPE OF 271 DEBT 73.6% Bonds 199 2.9% Repos 67 77 100 55 35 57 - 35 - 34 2017 2018 2019 2020 2021 2022 2023 2024 2026 . 2029 2030 . 2049 Credit ratios» CURRENCY COP 68.9% Net Debt / Dividends Liquidity
Slide 20: Human Talent and Corporate Culture
H U M A N T A L E N T A N D C O R P O R AT E C U L T U R E » Key aspects» Key practices» » Business culture » Technology at the service of human talent » Talent development » Leadership formation » High potential talents » Talent retention » Working environment and engagement » Compensation and bene
Slide 21: Grupo SURA Consolidated Results 2016
GRUPO SURA CONSOLIDATED RESULTS 2016 21
Slide 22: Statement of Financial Position: Assets
S T AT E M E N T O F F I N A N C I A L P O S I T I O N » CONSOLIDATED RESULTS 2016 Assets » 23,546 14,728 dec-15 19,281 + 4,265 1.2% 19,281 10,232 dec-16 23,546 2016 Var. $ %Var Investments 9,096 1,553 20.6% Investments in related companies 6,300 134 2.2% Accounts receivable 1,913 857 81.2% 9,049 8,
Slide 23: Statement of Financial Position: Liabilities
S T AT E M E N T O F F I N A N C I A L P O S I T I O N » CONSOLIDATED RESULTS 2016 Liabilities » dec-15 10,232 + 4,496 Total shareholder’s equity » 43.9% dec-16 14,728 dec-15 9,049 - 231 - 2.6% 2016 Var. $ %Var dec-16 8,817 Technical reserves 9,023 2,473 37.8% Issued securities 2,098 834 66.0 % Fina
Slide 24: Statement of Comprehensive Income
S T AT E M E N T O F C O M P R E H E N S I V E I N C O M E » CONSOLIDATED RESULTS 2016 Total revenues » Total expenses » Net income » dec-15 4,837 dec-15 4,180 dec-15 460 + 1,750 + 1,678 + 121 36.2% 40.1% 26.3% dec-16 6,587 dec-16 5,858 dec-16 580 2016 Var. $ %Var % / Revenues 2016 Var. $ %Var % / R
Slide 25: SURA Insurance, Trends & Risks: Suramericana Consolidated Results
SURA INSURANCE, TRENDS & RISKS SURAMERICANA S.A CONSOLIDATED RESULTS 25
Slide 26: Suramericana S.A. 2016 GWP
SURAMERICANA S.A. » MEXICO 2016 GWP USD 3.4 Bn Ranking 24 0.4% 0.2 M EL SALVADOR 1Q GWP Ranking 2 DOMINICAN USD 880 16.3% REPUBLIC million PANAMA 0.7 M Ranking 4 Ranking 5 9.1% 8.1% 0.2 M 0.1 M COLOMBIA 55.1% Colombia Ranking 1 12.9% Chile 24.5% 10.7% Argentina 10.8 M 5.8% Brazil BRAZIL 4.2% Mexico
Slide 27: Suramericana: Business Model Centered on Client Experience
SURAMERICANA» BUSINESS MODEL CENTERED ON CLIENT EXPERIENCE AND VALUE CREATION 01 04 Create great client experience and Build and develop competitive shareholders’ value advantages: Human talent, Technology and innovation, GTR 02 05 Strategic and emerging risk RSA Integration: management » Develop ne
Slide 28: Suramericana Highlights and Key Figures 1Q 2017
SURA INSURANCE, TRENDS & RISKS » SURAMERICANA S.A. Highlights and key figures 1Q 2017» • Consolidated regional platform in 9 • Multi-solution and multichannel portfolio • Significant improvement in Non-Life countries and 45% of premiums written where the Non-Life segment represents claims (from 58.6
Slide 29: Suramericana Consolidated Figures 2016
SURA INSURANCE, TRENDS & RISKS » SURAMERICANA S.A. CONSOLIDATED FIGURES 2016 Total revenues » Total expenses » Net income » dec-15 2,663 dec-15 2,478 dec-15 119 + 1,429 + 1,453 + 20 53.7% 58.6% 17.0% dec-16 4,091 dec-16 3,930 dec-16 139 2016 Var. $ %Var 2016 Var. $ %Var Retained premiums (net) 2,773
Slide 30: Segments: Premiums and Claims Ratio
SEGMENTS» PREMIUMS AND CLAIMS RATIO Life » Non life » Health care » Retained Retained Premiums Premiums Claims Ratio Claims Ratio 2016 %Var 2016 2015 2016 %Var 2016 2015 Services rendered Life 250 9.9% 25.7% 22.3% Auto 379 25.0% 64.4% 60.8% 2016 %Var Group Life 202 4.6% 35.3% 27.7% Fire 173 1.2% 31.
Slide 31: SURA Asset Management Consolidated Results 2016
SURA ASSET MANAGEMENT CONSOLIDATED RESULTS 2016 31
Slide 32: Strategic Guidelines: Focus on the Client
S T R AT E G I C G U I D E L I N E S » FOCUS ON THE CLIENT 32
Slide 33: SURA Asset Management Strategic Guidelines
SURA ASSET MANAGEMENT » STRATEGIC GUIDELINES 01 04 The client is the absolute priority Disruptive advisory based and is at the core of our strategy commercial model 02 05 Sustainability of the mandatory Excellence in Asset business Management 03 06 Acceleration of the Focus on efficiency voluntary b
Slide 34: Figures Total Company
Nº1 in Pensions in Latam FIGURES MEXICO Ranking 3 TO TAL C O M PAN Y » EL SALVADOR USD 27.4 Bn 7.5 M AUM Ranking 2 15.0% 2,865 USD 123 billion USD 4.5 Bn 1.5 M 47.3% 333 COLOMBIA Ranking 2 Clients USD 28.9 Bn 5.9 M 19.2 million +7.9% PERU Ranking 1 36.7% 2,124 Voluntary +13.7% I Mandatory +7.8% USD
Slide 35: SURA Asset Management Highlights 1Q 2017
SURA ASSET MANAGEMENT » HIGHLIGHTS 1Q 2017 AUM (USD billion) Diversified Net Operating Income 1Q2017* 74.4 86.2 99.8 107.6 118.1 123.6 40.2% Chile 13.7 14.1 11.5 31.4% México 9.8 8.0 USD 235 20.1% Perú 5.4 MILLION 3.0% Uruguay 104.4 109.5 90.0 96.1 69.0 78.2 Colombia* 5.3% 2012 2013 2014 2015 2016 m
Slide 36: SURA Asset Management Consolidated Figures 2016
SURA ASSET MANAGEMENT » CONSOLIDATED FIGURES 2016 Total revenues » Total expenses » Net income » dec-15 1,838 dec-15 1,573 dec-15 174 + 225 + 170 +39.8 12.2% 10.8% 22.8% dec-16 2,063 dec-16 1,742 dec-16 214 mar-17 Var. $ %Var %/Revenue mar-17 Var. $ %Var %/Revenue Retained premiums (net) 988 109 12.
Slide 37: Appendix
APPENDIX 37
Slide 38: Demographic Fundamentals
D E M O G R A P H I C F U N D A M E N TA L S » YOUNG AND GROWING POPULATION 364 MM 559 MM Age 2010 people over 20 2050 100+ people over 20 INTERESTING DEMOGRAPHIC 90 – 94 7% 19% EVOLUTION IN LATAM » 80 – 84 Annuities 70 – 74 60 – 64 50 – 54 47% 51% Men 40 – 44 Savings and 30 – 34 accumulation 20 – 2
Slide 39: Financial Services Penetration
FINANCIAL SERVICES» PENETRATION Pension penetration (%GDP)» Banking penetration (%GDP) » 188.8% 79.7% 84.5% 69.6% 97.9% 86.6% 83.0% 33.4% 20.4% 15.4% 20.3% 21.7% 24.2% 47.1% 45.6% 32.4% 42.3% 27.9% 29.8% 49.3% 11.10% 1.3% Estados Colombia Perú Panamá México Uruguay Europa Chile El salvador Dominican
Slide 40: Cross Holding Structure
CROSS HOLDING STRUCTURE » FINANCIAL SERVICES 12.7% 33.6% 35.2% 35.7% PROCESSED FOOD INFRASTRUCTURE 12.4% 9.6% 40
Slide 41: Mandatory Pension Fund Segment
M A N D AT O R Y P E N S I O N F U N D S E G M E N T » Contributions to pension funds are Steadily increasing revenues driven AUM tend to be stable, mandatory and correlated to size of by contributions to funds / assets as pensions are “sticky” the formal workforce » Flows into pension funds are a f
Slide 42: Key Main Characteristics
KEY MAIN CHARACTERISTICS » 42
Slide 43: Key Main Characteristics
KEY MAIN CHARACTERISTICS » 43
Slide 44: Our Vision: Latin American Pension Challenges
OUR VISION» TWO MAJOR CHALLENGES FOR THE LATIN AMERICAN PENSION SYSTEMS: CLOSE THE EXISTING PENSION GAPS » ENHANCING THE INTEGRATION BETWEEN » or non-contribution Social assistance pillar A mandatory contribution pillar A voluntary savings pillar THE 3 PILLARS 44
Slide 45: Our Vision: Proposals for Multi-Pillared Pension System
OUR VISION» PROPOSALS FOR ENHANCING A MULTI-PILLARED PENSION SYSTEM More savings and More efficient Multi-funds Enhancing Incorporating over a longer investment protect against competition alternative period of time portfolios risk investment options Increasing Adequate Extending Enhancing the Creat
Slide 46: Undisputed Leadership in Highly Stable Mandatory Pension Business
U N D I S P U T E D L E A D E R S H I P I N H I G H LY S T A B L E M A N D AT O R Y P E N S I O N B U S I N E S S » 23.3% 19.6% 14.9% 36.2% 40.0% 17.8% 47.1% Ranking 1st Ranking 4th Ranking 3rd Ranking 2nd Ranking 1st Ranking 2nd Ranking 2nd Metlife 11.1% 26.2% 2.5% Prudential 10.9% 27.3% 2.2% Princ
Slide 47: Appendix: 1Q 2017 Financial Statements
APPENDIX 1Q 2017 Financial Statements 47
Slide 48: Statement of Financial Position: Assets 1Q 2017
S T AT E M E N T O F F I N A N C I A L P O S I T I O N » GRUPO SURA CONSOLIDATED 1Q 2017 Assets » dec-16 23,546 + 290 23,546 14,728 23,836 15,127 1.2% mar-17 23,836 mar-17 Var. $ %Var Investments 9,321 226 2.5% Investments in related companies 6,194 -105 -1.7% Accounts receivable 1,960 47 2.5% Ident
Slide 49: Statement of Financial Position: Liabilities 1Q 2017
S T AT E M E N T O F F I N A N C I A L P O S I T I O N » GRUPO SURA CONSOLIDATED 1Q 2017 Liabilities » dec-16 14,728 + 398 Total shareholder’s equity » 2.7% mar-17 15,127 dic-16 8,817 - 108 - 1.2% mar-17 8,709 mar-17 Var. $ %Var Technical reserves 9,281 258 2.9% Issued securities 2,331 234 11.2% Fin
Slide 50: Statement of Comprehensive Income 1Q 2017
S T AT E M E N T O F C O M P R E H E N S I V E I N C O M E » GRUPO SURA CONSOLIDATED 1Q 2017 Total revenues » Total expenses » Net income » mar-16 1,371 mar-16 1,152 mar-16 176 + 366 + 409 - 35 26.7% 35.5% -19.9% mar-17 1,737 mar-17 1,562 mar-17 141 mar-17 Var. $ %Var % / Revenues mar-17 Var. $ %Var
Slide 51: Net Income Bridge: Grupo SURA and Other
S T AT E M E N T O F C O M P R E H E N S I V E I N C O M E » GRUPO SURA CONSOLIDATED 1Q 2017 Grupo SURA and Other*» (58) 13 16 176 19 Net Income without Fx (9) 141 (9) Impact and Non (7) Recurring Expenses +28% Fx DIAN Impact** (+) Provision Net Income ∆ Net Income ∆ Net Income GS Equity ∆ GS Fx GS
Slide 52: Suramericana Consolidated Figures 1Q 2017
SURA ASEGURAMIENTO, TENDENCIAS Y RIESGOS » SURAMERICANA S.A. CONSOLIDATED FIGURES 1Q 2017 Total revenues » Total expenses » Net income » mar-16 735.4 mar-16 686.6 mar-16 34.9 + 393 + 385 + 16 53.4% 56.1% 44.7% mar-17 1,128.3 mar-17 1,071.8 mar-17 50.5 mar-17 Var. $ %Var mar-17 Var. $ %Var Retained p
Slide 53: Segments: Premiums and Claims Ratio 1Q 2017
SEGMENTS» PREMIUMS AND CLAIMS RATIO 1Q 2017 Life » Non life » Health care » Retained Retained Premiums Premiums Claims Ratio Claims Ratio mar-17 %Var mar-17 mar-16 mar-17 %Var mar-17 dec-16 Services rendered Life 46 14.3% 26.5% 30.6% Auto 205 133.7% 64.4% 69.7% mar-17 %Var Group Life 60 24.8% 36.5%
Slide 54: SURA Asset Management Consolidated Figures 1Q 2017
SURA ASSET MANAGEMENT » CONSOLIDATED FIGURES 1Q 2017 Total revenues » Total expenses » Net income » mar-16 498.9 mar-16 426.1 mar-16 46.7 +25.1 +5.4 +13.4 5.0% 1.3% 28.8% mar-17 524.0 mar-17 431.5 mar-17 60.1 mar-17 Var. $ %Var %/Revenue mar-17 Var. $ %Var %/Revenue Retained premiums (net) 212.9 -30
Slide 55: Mandatory Pension Market Figures 1Q 2017
M A N D AT O R Y P E N S I O N » MARKET FIGURES 1Q 2017 Assets Under Management » Pension fund membership (mm)» 8.4% 0.5% 8.2% 19.4% 15.0% 4.4% 8.2% -2.4% 16.7% -0.4% 0.8% 3.9% 4.7% 7.8% 10.3% 12.6% 9.3% 11.5% 15.0% 8.5% 11.7% 16.0 17.2 109,494 101,226 7.4 35,866 22,976 6.4 4.1 4.2 33,087 23,257 26,
Slide 56: Mandatory Pension Main Figures 1Q 2017
M A N D AT O R Y P E N S I O N » MAIN FIGURES 1Q 2017 Commission income » Return on legal pension reserve (“encaje”) » -1.0% -13.9% -7.3% 7.9% -7.2% 11239.7% 442.6% 434.2% -13.0% 1119.2% 2.9% 7.9% -1.7% 8.3% 3.8% 11683.2% 579.9% 466.4% -12.6% 1268.9% 154.0 142.8 51.9 51.4 61.2 52.7 27.9 35.1 32.5 19
Slide 57: Voluntary Savings Segment Main Figures 1Q 2017
V O L U N T A R Y S AV I N G S S E G M E N T » MAIN FIGURES 1Q 2017 Assets Under Management » Clients (thousands) » 11.5% 10.6% 48.6% 219.3% 16.5% 15.4% 6.8% 28.2% 18.4% 84.6% 12.3% 13.7% 13.5% 23.8% 50.1% 198.3% 16.5% 21.1% 970 10,520 854 9,116 3,511 3,883 385 412 3,058 3,410 269 302 637 946 87 1,8
Slide 58: Voluntary Savings Segment Main Figures 1Q 2017
V O L U N T A R Y S AV I N G S S E G M E N T » MAIN FIGURES 1Q 2017 Commission income» Net premiums with savings » 1.4% 14.5% 27.9% 139.6% 0.0% 14.0% 16.9% 0.0% 14.0% 18.8% 5.4% 43.5% 35.6% 140.5% 0.0% 27.3% 21.5% 1381.8% 20.9% 23.7% 16.0 81.0 88.7 14.0 69.3 74.6 7.4 7.5 5.6 6.4 0.9 1.2 0.1 0.2 0.0
Slide 59: Insurance Segment Main Figures 1Q 2017
INSURANCE SEGMENT » MAIN FIGURES 1Q 2017 Net premiums » Adjustments to reserves » -27.7% -11.8% -40.1% -26.2% -31.6% 11.9% -52.1% -25.8% -24.8% 10.5% -36.5% -19.8% -28.9% 40.2% -49.1% -19.6% 168 124 -32 -25 -12 99 -62 -35 71 -91 39 35 30 -109 18 -147 Chile Mexico Peru Total Chile Mexico Peru Total R
Slide 60: www.gruposura.com.co
DAVID BOJANINI CEO RICARDO JARAMILLO CFO JUAN CARLOS GOMEZ IR MD ANDRES ZULUAGA IR SPECIALIST E-mail: ir@gruposura.com.co Phone: (574) 3197039 www.gruposura.com.co 60
Grupo de Inversiones Suramericana — Investor Presentation (2017) on 6ix