Grupo De Inversiones Suramericana S.a. · BVC:GRUPOSURA
Grupo De Inversiones Suramericana — Grupo SURA — Q4 2022 Earnings Presentation
27 slides from Grupo De Inversiones Suramericana's earnings presentation, Mar 1, 2023
Slide 1: Grupo SURA
Grupo SURA
Slide 2: Forward-looking statements
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: Webcast
Webcast To change the audio language, click the icon. Para cambiar de idioma, haga clic en icono de su preferencia. 3
Slide 4: Consolidated Results
Grupo SURA Suramericana SURA AM Consolidated Results Main Figures Consolidated Results Consolidated Results Equity Method Profit & repurchase program Life Segment Retirement Savings Segment Net Income Bridge Highlights Property and Casualty Segment Inversiones Sura + IM Forensic audit report Kroll H
Slide 5: Grupo SURA – Santiago de Chile
GRUPO SURA Santiago de Chile + Chile
Slide 6: Delivery 2022 & guidance 2023
Exceeding expectations at the beginning of the year due to a better performance of the investment portfolio TOTAL REVENUES ∆ COP 6.5 Tn vs 2021 Delivery 2022 & guidance 2023 CAGR +15.6% 31.4 24.9 2022 2023 21.3 20.9 18.3 18.8 15.5 11.4 Controlling +47% +10%-15% vs +10-15% Net Income 2015 2016 2017 2
Slide 7: Cash Flow
Cash Flow Revenues Received1 Shareholder Dividend Proposal (COP billions) (COP per share) CAGR 2019-2023: 12% CAGR 2019-2023: 15% 2, 000 2, 000 1, 800 44% 1,674 Record revenues 1, 800 Total Amount 1, 600 received 1, 600 COP 741,413 MM 63% 1,280 1,163 1, 400 1, 400 1, 200 1,062 1,064 1, 200 1, 000 1,
Slide 8: Highlights: health care system, ratings and sustainability
• It is essential that health care system focuses on the user • Sustainability is a critical factor for the system • The health component continues to be a priority for Grupo Sura, where we have knowledge in risk management, prevention, benefits, and coverage • The potential impact on earnings is no
Slide 9: Forensic audit report Kroll
• On February 17, the Audit and Finance Committee and the Board of Directors of Grupo SURA received the final report presented by the specialized forensic auditing firm Kroll Associates Colombia S.A.S. (Kroll). • This process was advanced on a complaint filed by a member of the Board of Directors, f
Slide 10: Spin-off Protección
Protección Control Spin – off Protección Purchase of Asulado November December December 785 billion of Protección's equity is Sura AM buys Asulado shares from Sura AM capitalizing $238 billion out spin off. Asulado is created with some partners for their intrinsic of a total of $300 billion, increas
Slide 11: Reaffirm the strength of the portfolio's businesses
Reaffirm the strength of the portfolio's businesses TOTAL REVENUES ∆ COP 2.5 trillion vs 4Q21 11, 000 CONSOLIDATED INCOME STATEMENT Dec 21 Dec 22 Var. $ Var.% 9,066 7,851 10, 000 Written premiums 22,438 31,732 9,294 41% 9, 000 7,525 Retained earned premiums 17,616 22,303 4,687 27% 6,909 8, 000 6,583
Slide 12: Sao Paulo • Brasil
Sao Paulo • Brasil
Slide 13: Life segment: premium performance and investment income
Leveraged by premium performance, stabilization of claims and higher investment income CONSOLIDATED INCOME STATEMENT Dec 21 Dec 22 Var. $ Var.% CLAIMS RATIO* Written premiums 21,740 27,043 5,303 24% 1 , 500 71% 70% 71% 72% 73% 74% 70% 80% Retained premiums 17,838 22,780 4,942 28% 1 , 300 70% 55% 72%
Slide 14: Property and Casualty: premium growth and lower claims ratio
Growth in premiums and higher investment income accompanied by a lower claims ratio WRITTEN PREMIUMS RETAINED CLAIMS* Highlights ∆ COP 325 billion ∆ COP billion 3, 000 66.6% 65.7% 64.0% 64.3% 62.7% 2, 500 +18.8% 2,052 • ARL written premiums +24.4%, with a 1,159 2, 000 1,727 930 996 1,094 998 40.2% m
Slide 15: Increased investment income and improved accident rate
Increased investment income and improved accident rate of mobility solutions WRITTEN PREMIUMS RETAINED CLAIMS * Highlights ∆ COP 752 billion ∆ COP 268 billion • Written premiums grew due to 58% 6, 000 54% 55% 57% 57% business solutions (+27.0%), as well as 5, 000 +23.4% 3,967 auto solutions (+19.3%)
Slide 16: Health care segment: higher accident rates in EPS
EPS has higher accident rates and lower benefits Covid impact Ayudas Diagnósticas WRITTEN PREMIUMS RETAINED CLAIMS Highlights ∆ COP 485 billion ∆ COP 537 billion 97.6% 8, 000 94.0% 94.2% 96.5% 93.4% • Written premiums issued +18.8% in the 7, 000 100. 0% +27.3% 2,261 6, 000 accumulated period due to
Slide 17: Net income recovery by year-end
Net income recovery by year-end NET INCOME ∆ COP 172 billion 250 159 104 79 10 5 -11 -23 -91 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 NET INCOME BRIDGE Net Income Operating Interest Net Income Life P&C Health Care Other 2021 Expenses Expense 2022 17 Figures in COP billion
Slide 18: Suramericana 2022 delivery and 2023 guidance
Profitability with above-budget delivery. Double-digit growth expectations for 2023 continue with a change in the mix of solutions impacting the loss ratio 2022 2023 +24.4% 13% - 16% Written Premiums vs +11-13% Claims Ratio 72.2% 72% - 74% vs 70%-71% Adm. Expenses/ 12% 11% - 12% Written Premiums vs
Slide 19: Capital humano – Lima, Perú
Capital humano Habilitamos en las personas las competencias y los conocimientos que favorezcan, desde la flexibilidad y diversidad, el pleno desarrollo del ser y de su potencial para generar valor a la compañía, los grupos de interés y la sociedad como un todo Lima • Perú
Slide 20: Retirement savings segment: Protección consolidation
For the quarter, it generated positive impacts on income from reserve requirements and AUM commissioning businesses Prof. Dic Var.% Var.% CONSOLIDATED INCOME STATEMENT Dec 21 Dec 22 Highlights 22 21-22 21-Prof.22* Commission income 2,657 2,838 2,658 7% -8% • In November 2022, Sura AM takes control o
Slide 21: Segment marked by larger salary base and reserve recovery
Segment marked by a larger salary base and the recovery of reserve requirements despite the impact on commission income TOTAL AUM COMMISSION INCOME Highlights 576 • Segment figures affected by 783 489 +17.8% -2.3% consolidation of Protección and 583 569 Asulado • Proforma commission income decreases
Slide 22: Results remain positive despite challenging macro environment
Results remain in positive territory despite a more challenging macroeconomic environment TOTAL AUM COMMISSION INCOME Highlights 97.0 • Segment figures affected by 76.9 +26.1% 161 consolidation of Protección and +11.5% 117 105 Asulado • AUM grows 3.4% excluding exchange rate effect amid challenging
Slide 23: Better performance of capital markets
Better performance of capital markets CONTROLLING NET INCOME ∆ COP 193 billion vs 4Q2021 450 400 350 300 3 209 250 168 160 200 -5 118 92 96 150 34 100 174 115 189 220 102 90 103 295 50 - -47 - 50 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 Net Income NI exc. Legal Reserves VARIATION IN NET INCOME N
Slide 24: SURA AM 2022 delivery and 2023 guidance
Profitability impacted by negative yields in the macroeconomic context. Recovery in 2023 due to expectations of lower interest rates and inflation 2022 2023 (0.3%) 9% - 11% AUM vs +10-12% Commission income (8.3%) 26% - 29% vs (2%) - (5%) Adjusted ROE 5.1% 6% - 7% vs 6% - 7% ROTE 15.4% 17% - 21% vs 2
Slide 25: Consolidated Results – Santiago de Chile
~ Consolidated Results GRUPO SURA Santiago de Chile + Chile
Slide 26: Equity method: record highs after strong associate performance
Closes the year at record highs after strong performance by associates Highlights 543 503 520 473 409 410 336 • Equity method grows 15.3% vs. 239 4Q21 25 • Results leveraged by Bancolombia, Argos and Nutresa 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 • As of November, Protection no longer contribu
Slide 27: Net Income bridge: financial results above expectations
Financial results above expectations Net Income ∆ Grupo SURA and others Var. 2022 COP - 265 +53.8% Net Income 2021 Suramericana SURA AM Equity Method ∆ Fx Impact** ∆ Admin. Expenses ∆ Interest Expenses ∆ Other* Net Income 2022 Controlling Net Income 2022 Figures in COP billion *Others include Arus,