Grupo De Inversiones Suramericana S.a. · BVC:GRUPOSURA
Grupo De Inversiones Suramericana — Grupo SURA — Q4 2019 Earnings Presentation
75 slides from Grupo De Inversiones Suramericana's earnings presentation, March 2020
Slide 1: Grupo SURA Corporate Presentation Q4-2019
Grupo SURA Corporate Presentation Q4-2019
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: Leading Financial Services Group in Latam
Leading Financial Services Group in Latam with a solid and diversified portfolio 11 countries +52 million clients #1 PENSION FUND #1 INSURANCE #1 COLOMBIAN INDUSTRIAL MANAGER COMPANY BANK INVESTMENTS in Latam, with a in Colombia, with an with a leading with relevant positions growing voluntary estab
Slide 4: Diversified Investment Portfolio
Diversified Investment Portfolio and other investments Cement, energy Insurance, trends and infrastructure and risk management 35.2% S TAKE * 1% 81.1% S TAKE 11% 20% 11% USD Processed food 11.1bn 35.2% S TAKE 29% Pensions, asset and 28% wealth management 83.6% S TAKE Universal banking 46.1% S TAKE *
Slide 5: History & Growth Stages
History & Growth Stages INSURANCE INTERNATIONAL LEADERSHIP EXPANSION in Colombia Multi Latin, financial services group 1 9 4 4 / 1 9 9 0 2 0 0 7 / 2 0 1 6 1 9 9 0 / 2 0 0 7 2 0 1 7 - FINANCIAL FOOTPRINT OPTIMIZATION SERVICES Divestments for USD ~500 MM - Annuities business (Ch., Pe., Mx) leader in C
Slide 6: Building a Regional Platform with a Long Term View
Building a Regional Platform with a Long Term View CREATING LONG BECOMING THE AND THE 4TH WITH A FOCUS ON TERM RELATIONS LARGEST PENSION FUND LARGEST LATAM FINANCIAL STRENGTH WITH OUR CLIENTS MANAGER IN LATAM INSURANCE GROUP # of clients AUM Gross Dividends from pension written premiums received fro
Slide 7: Geographic Footprint
Geographic Footprint P O P U L AT I O N CLIENTS FINANCIAL SERVICES 520MM 52MM +1.1% CAGR (2000-2018) I N 11 C O U N T R I E S P E N E T R AT I O N * INSURANCE PENSION BANKING 2.8% vs. 7.8% 31% vs. >80% ~ 4 8 % vs. >150% for advanced countries for US and UK for US and EU D R I V E R S ECONOMIC MIDDLE
Slide 8: Corporate Strategy
Corporate Strategy Purpose: Create well-being and sustainable development for people, organizations and society. Aspiration: to become a referent Latin American Group in the financial services sector, thanks to our ability to evolve and provide superior added value to shareholders and society. STRAT
Slide 9: Portfolio Management Strategy
Portfolio Management Strategy SHAREHOLDER VALUE RETURN ON CAPITAL GROW TH STRATEGIC PROACTIVE CORPORATE ADDING SYSTEMATIC CAPITAL MANAGEMENT AT ACQUISITIONS DIVESTITURES VALUE TO UNITS ALLOCATION A GRANULAR LEVEL BE IN GOOD BUSINESSES BE A BETTER OWNER • Focus on value • After an intensive • Underst
Slide 10: Grupo SURA's Financials Evolution
Grupo SURA’s Financials Evolution CONSOLIDATED REVENUES* HOLDING COMPANY RECEIVED DIVIDENDS 306 318 6.2% -0.3% 13.3% ~3.5x 281 259 31.2% 2010 Dividends 247 6,679 5,913 5,897 183 Bancolombia 5,570 167 S U R A AM 4,246 135 G r u p o Ar g o s 90 92 Grupo Nutresa Protección Suramericana Other 2015 2016
Slide 11: Adjusted ROE
ADJUSTED ROE With an upward trend ADJUSTMENTS TO ROE Net Income: • Addback of non-cash expenses related to M&A 10.6% 10.3% 12% 9.7% 8.9% 11% Equity 10.4% • Associates and their portfolios, which are valued close to market 9.1% prices Normalized Adjusted ROE • Returns on legal reserves from mandatory
Slide 12: Our Portfolio
OUR PORTFOLIO Estimated value 1.2 0.1 11.1 1.3 9.3 3.2 -1.8 ~35% 5.9 Discount 2.2 3.1 SURA AM SURAMERICANA BANCOLOMBIA GRUPO GRUPO OTHER PORTFOLIO HOLDCO DEBT + PORTFOLIO MARKET NUTRESA ARGOS VALUE NPV OF TAXES & VALUE (-) CAP. EXPENSES DEBT M AR K E T C AP I TAL I Z AT I O N Current Market Cap impl
Slide 13: Grupo SURA Individual Debt
Grupo SURA Individual Debt DEBT 550 M AT U R I T Y P R O F I L E » C R E D I T R AT I O S » 343 NET DEBT/ DIVIDENDS (FTM) 30 137 146 49 85 29 29 4.1x - - Max. 5x 2020 2021 2022 2023 2024 2026 . 2029 2030 . 2049 BANKS INTERNATIONAL LOCAL BONDS REPOS LIQUIDITY BONDS 0.93x » F I N A N C I A L D E B T:
Slide 14: 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 15: 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 16: Suramericana
Suramericana #4 LATAM MULTICHANNEL DIVERSIFIED INSURANCE APPROACH BUSINESS MODEL GROUP developing new Geography with an established channels throughout growth platform in 9 the region 34% countries of GWP outside Colombia #1 INSURANCE 24,000 Business lines COMPANY agents 47% P&C 21,000 in Colombia w
Slide 17: Corporate Strategy
Corporate Strategy Provide well-being, Human talent Increase current clients’ Sustainable ROE competitiveness and and Trends & Risks loyalty, to drive attraction and above cost of equity sustainability to people Management growth of new clients and businesses ENVIRONMENT EMERGING RISKS CONSUMER AND
Slide 18: Competitive Strategy
Competitive Strategy WE COMPETE IN WE MANAGE HUMAN VALUE OPERATIONAL + ALLIANCES REGULATION TECHNOLOGY CAPITAL TALENT PROPOSITION MODEL S U S TAI N AB I L I T Y OPERATING EFFICIENCY L O N G - TE RM R E L AT I O N S VAL U E C R E AT I O N 18
Slide 19: Design
Design Today´s markets Trends MANAGE Strategic UNCERTAINTY Emerging Operational Risks FROM SOLVING TO BALANCE EMPOWERING FINANCING - MANAGING Segments Products Finance Solutions Manage Competence
Slide 20: Design
Design SURA today Trends MANAGE Strategic UNCERTAINTY Emerging Operational Risks FROM SOLVING TO BALANCE EMPOWERING FINANCING - MANAGING Segments Products Finance Solutions Manage Competence
Slide 21: Design
Design SURA in the future Trends MANAGE Strategic UNCERTAINTY Emerging Operational Risks FROM SOLVING TO BALANCE EMPOWERING FINANCING - MANAGING Segments Products Finance Solutions Manage Competence
Slide 22: Common focus in all countries
Common focus in all countries • Ability to read the evironment and • Whole life solutions CONSUMER trends SOLUTIONS • UY, MX 2018 • Understand how social trends are • ARG, CH 2019 changing consumer behavior • BR 2020 • Dynamic multidimensional • Focus on SME segment segmentation (DMS) • Empresa SURA
Slide 23: Suramericana's Financials Evolution
Suramericana’s Financials Evolution OPERATING REVENUES CLAIMS AND EXPENSE RATIO 3.2% 13.5% 5,224 22.4% 93.3% 92.3% 94.6% 92.2% 93.9% 4,460 4,601 1,180 55.2% 3,643 797 955 4,044 59.4% 60.4% 59.4% 666 3,663 3,646 54.8% 54.9% 2,347 2,977 554 15.6% 16.6% 15.5% 15.6% 15.2% 1,793 2015 2016 2017 2018 2019
Slide 24: 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 25: SURA Asset Management
SURA Asset Management MANDATORY SAVINGS AND ASSET PENSION INVESTMENTS MANAGEMENT Stable cash flow Underpenetrated Regional platform AUM (bn) generation business business with high connecting Latam to 44 growth potential the world 35 32 88% 6% 6% AUM AUM AUM 21 3 6 AUM AUM AUM USD 130 bn USD 10.7 bn
Slide 26: Corporate Strategy
Corporate Strategy OUR PURPOSE Helping our clients to achieve their dreams and goals STRATEGIC GUIDELINES » Our client in the center of our strategy » Core guidelines for the development of our businesses » Capacity development through transversal enabling strategy guidelines ALIGNING OUR BUSINESSES
Slide 27: Sustainability of Mandatory Business
Sustainability of Mandatory Business Relationship with stakeholders, seeking Financial and pension Efficient and innovative New business and the improvement of education Business Models. value offer for retirees. pension systems and its understanding . KEY FIGURES 2019 COMMISSION OPERATING INVESTMEN
Slide 28: Transformation of Wealth Management Business
Transformation of Wealth Management Business Brand positioning Differentiated advice . Products, solutions Attraction of new “Inversiones SURA”. and platforms clients and cross-sell increasing value to existing clients. proposition. KEY FIGURES 2019 OPERATING AUM AUM GROWTH REVENUES +28.7% USD 41MM
Slide 29: Development of the Asset Management Business
Development of the Asset Management Business Regional platform and High standards in Relationship with business model. portfolio management institutional clients and backed by SURA’s product development reputation. in Latam. KEY FIGURES 2019 COMMISSION AUM AUM GROWTH INCOME +17% exc. Annuities Chile
Slide 30: SURA AM's Financials Evolution
SURA AM’s Financials Evolution AUM COMMISSION INCOME 147,536 699 122,811 127,721 600 637 548 575 83 103,445 63 70 99,083 44 50 614 537 566 504 525 4.9% 4.3% 6.1% 9.7% CAGR 4.4% 18.7% 4.0% 15.5% Mandatory 5.4% Voluntary 18.4% 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 Mandatory pension LTM Vol
Slide 31: 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 32: SURA Ventures
SURA Ventures FINTECH Personal finance platform Mortgage digital market place H E ALT H T E C H Health tech operator Optimizing Access to health systems INSURETECH Digital insurance Mobile sensor data for On-demand Health ecosystem – road safety insurance preventive approach B2B VC FUND HR SAAS Targ
Slide 33: Bancolombia
Bancolombia COLOMBIA’S LEADING OVER 14 MM CLIENTS FINANCIAL INSTITUTION with access to a strong with a strong presence in distribution network Central America 6,019 ATMs, 1,005 branches and 13,731 banking kiosks LOANS FUNDING MARKET SHARE COLOMBIA SALVADOR PANAM A Loans Loans Loans 26.0% 26.4% 10.8%
Slide 34: Grupo Nutresa
Grupo Nutresa LARGEST PROCESSED PRESENCE IN 72 FOODS GROUP IN COUNTRIES, owns 30 COLOMBIA production plants in Colombia, STRONG as measured by market 16 outside of Colombia and its BRANDING share in all of the market own distribution network in 14 WITH VALUE segments it serves countries ADDED PRODUC
Slide 35: Grupo Argos
Grupo Argos STRATEGIC FOCUS SOLID TRACK RECORD HOLDING COMPANY in Cement, Energy, Road building regional platforms with a solid and articulated and Airport Concessions portfolio with USD 14.5 Cement and RMC* billion in AUM # 1 in Colombia With a balance in terms of # 2 in RMC and # 4 in regions, cur
Slide 36: Appendix
37 » APPENDIX GRUPO surda WW 7 A
Slide 37: Diversification
Diversification DIVERSIFIED DIVIDEND STREAM CONSOLIDATED FIGURES Grupo Argos 9% Country Clients Revenues Net Income Assets Grupo Nutresa 10% COLOMBIA 28 58.8% 48.9% 54.4% SURA Asset Management By 43% CHILE 4 15.2% 18.6% 21.8% Company Bancolombia MEXICO 8 10.3% 22.1% 10.9% 21% PERÚ 2 2.3% 9.3% 4.6% S
Slide 38: Shareholding Structure
Shareholding Structure 27.1% Gru po Argos and 33.7% subsidiarie s Total Outstanding Shares 10.5% Gru po Nutresa 13.0% 29.1% Colombian Pe nsion 581,977,548 21.3% Funds (COMM) (COMM + PREF) Outstanding Outstanding Inte rnational Funds 13.1% Common Shares Pref. Shares 13.3% 4.9% Retail Investo rs 80.6%
Slide 39: Cross Holding Structure
Cross Holding Structure FINANCIAL SERVICES 13% 34%* 35% 35% PROCESSED FOOD INFRASTRUCTURE 12% 10% 40 Stakes in common shares *Includes stake held in Grupo SURA by Cementos Argos which owns 6% of Grupo SURA’s common shares.
Slide 40: To create well-being and sustainable development
To We manage trends, We adopt responsible We contribute to We engage our We contribute to social create well-being risks and business practices enhance public Stakeholders development, beyond and sustainable opportunities institutions to make decisions business development • Materiality Education fo
Slide 41: Standards and Reports
Standards and Reports DJSI Results Other Initiatives / Standards 100 90 80 70 60 50 40 30 20 Prioritized SDG’s 10 0 Total Economic Dimension Dimensión económica Environmental DimensionDimensión Dimensión ambiental Social Dimension social Grupo SURA 2017 Grupo SURA 2018 Mejor Best Promedio World Worl
Slide 42: Mandatory Pension Fund Segment
Mandatory Pension Fund Segment 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 fixed » Fees are retained
Slide 43: Main Characteristics per Country
Main Characteristics per Country 44
Slide 44: Main Characteristics per Country (contd.)
Main Characteristics per Country (contd.) 45
Slide 45: Our Vision
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 Creati
Slide 46: Undisputed leadership in Mandatory Pension Business
Undisputed leadership in Mandatory Pension Business 22.8% 19.2% 14.7% 36.7% 38.6% 17.8% 47.5% Ranking 1st Ranking 4th Ranking 3rd Ranking 2nd Ranking 1st Ranking 2nd Ranking 2nd Metlife 9.3% 24.9% 0.0% Prudential 10.9% 28.0% 4.4% Principal 9.3% 19.0% 6.8% Banorte 7.4% 22.4% Grupo AVAL 6.8% 42.9% Cit
Slide 47: Ranking: Insurance Companies in Latin America
Ranking: Insurance Companies in Latin America Rkg Group Country 2008 2017 2018 Mkt. Share 2018 Var% 10 yr CAGR 1 Bradesco Brazil 7,542 12,948 10,032 6.3% -22.5% 2.9% 2 Brasilprev1 Brazil 1,237 11,992 8,715 5.5% -27.3% 21.6% 3 Mapfre Spain 5,121 9,155 8,421 5.3% -8.0% 5.1% 4 Zurich Switzerland 1,584
Slide 48: Ranking: P&C Insurance Companies in Latin America
Ranking: P&C Insurance Companies in Latin America Rkg Group Country 2008 2017 2018 Mkt. Share 2018 Var% 10 yr CAGR 1 Mapfre Spain 4,117 6,730 6,023 7.2% -10.5% 3.9% 2 Zurich Switzerland 1,172 3,116 3,570 4.3% 14.6% 11.8% 3 Porto Seguro Brazil 2,120 3,687 3,497 4.2% -5.2% 5.1% 4 Suramericana Colombia
Slide 49: Ranking: Life Insurance Companies in Latin America
Ranking: Life Insurance Companies in Latin America Rkg Group Country 2008 2017 2018 Mkt. Share 2018 Var% 10 yr CAGR 1 Brasilprev1 Brazil 1,237 11,992 8,715 13.0% -27.3% 21.6% 2 Bradesco Brazil 5,576 10,851 8,225 12.2% -24.2% 4.0% 3 Itaú Brazil 4,075 7,008 5,343 8.0% -23.8% 2.7% 4 Cnp Assurances Fran
Slide 50: Market Share 2019
Market Share 2019 MÉXICO 18° 7.1% 6° 1.0% REPÚBLICA DOMINICANA 2° 20.3% EL SALVADOR PANAMÁ 22.9% 1° 4° COLOMBIA 9.7% Brazil 24° 0.3% 6° 6.4% URUGUAY CHILE 3° 5.8% ARGENTINA 11° Market share 2.2% Ranking 51
Slide 51: Insurance Market Share Evolution
Insurance Market Share Evolution SURA URUGUAY 13.3% 13.1% SURA PANAMÁ 9.7% 8.5% SURA REP.DOMINICANA 7.0% 8.0% SURA SALVADOR 18.4% 18.2% SURA MEXICO 0.8% 0.8% SURA CHILE (GENERALES) 13.9% 14.6% SURA COL (VIDA) 26.4% 29.6% SURA COL (GENERALES) 19.2% 19.1% SURA BRASIL 0.6% 0.6% SURA ARGENTINA 3.0% 2.9%
Slide 52: SURA Market Share by country - Insurance
SURA Market Share by country - Insurance 14.1% Uruguay 16.8% 10.7% Domincan Republic 10.5% 1.3% Mexico 1.5% 19.2% El Salvador 21.3% 28.9% Colombia Life 25.1% 19.7% Colombia P&C 19.8% 14.5% Chile 15.1% 0.7% Brazil 0.8% 3.3% Argentina 3.5% 2015 2018 Fundación Mapfre 2018
Slide 53: Insurance Penetration (% of GDP)
Insurance Penetration (% of GDP) País 2008 2010 2015 2016 2017 2018 Argentina 2.1% 2.0% 2.6% 2.6% 2.6% 2.4% Brazil 2.8% 2.9% 3.8% 4.0% 4.1% 3.9% Chile 3.9% 3.8% 4.6% 4.9% 4.7% 4.6% Colombia 2.2% 2.3% 2.7% 2.8% 2.8% 2.8% México 1.8% 1.9% 2.2% 2.2% 2.2% 2.2% Panamá 3.1% 3.1% 2.5% 2.3% 2.3% 2.5% Urugua
Slide 54: P&C Insurance Penetration (% of GDP)
P&C Insurance Penetration (% of GDP) País 2008 2010 2015 2016 2017 2018 Argentina 1.5% 1.7% 2.2% 2.2% 2.2% 2.0% Brazil 1.5% 1.4% 1.8% 1.8% 1.8% 1.8% Chile 1.6% 1.5% 1.8% 1.8% 1.8% 1.8% Colombia 1.4% 1.6% 1.9% 1.9% 1.9% 1.9% México 1.0% 1.1% 1.2% 1.2% 1.2% 1.2% Panamá 2.2% 2.3% 1.9% 1.8% 1.7% 1.9% Ur
Slide 55: Life Insurance Penetration (% of GDP)
Life Insurance Penetration (% of GDP) País 2008 2010 2015 2016 2017 2018 Argentina 0.5% 0.3% 0.4% 0.4% 0.4% 0.3% Brazil 1.3% 1.5% 2.1% 2.3% 2.3% 2.1% Chile 2.3% 2.3% 2.8% 3.1% 2.8% 2.8% Colombia 0.8% 0.7% 0.8% 0.9% 0.9% 0.9% México 0.8% 0.8% 1.0% 1.0% 1.0% 1.0% Panamá 0.9% 0.8% 0.6% 0.6% 0.6% 0.6% U
Slide 56: Insurance Market Penetration - Life
Insurance Market Penetration - Life CAGR 3yr Penetración P&C Penetración Life Posición SURA P&C Primas Evolución Métricas 2008 2018 2008 2018 Mkt. Share Ranking SURA Mercado Argentina 1.5% 2.0% 0.5% 0.3% 3.3% 11 36.0% 33.6% Brazil 1.5% 1.8% 1.3% 2.1% 0.9% 20 7.6% 3.5% Chile 1.6% 1.8% 2.3% 2.8% 14.9%
Slide 57: Q4-2019 Results
58 » Q4-2019 Results GRUPO surda WW 7 A
Slide 58: 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 59: 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 60: 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 61: 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 62: 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 63: 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 64: 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 65: 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 66: 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 67: 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 68: 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 69: 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 CO ST S / REVENUES NET INCOME COP 21,141 MM COP 19,155 MM 69% 138% DEC-19 %VAR DEC-19 DEC-18 EPS 3,571,561 25.1% 94.3% 92.3% IPS 621,530 15.
Slide 70: 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 71: Grow 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 72: 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 73: 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 74: 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 75: Investor Relations Contact Information
INVESTOR RELATIONS CONTACT INFORMATION IRO: JUAN CARLOS GOMEZ jcgomez@gruposura.com.co IR Specialist: ANDRES ZULUAGA azuluagaa@gruposura.com.co (574) 3197039 www.gruposura.com.co 76