Grupo De Inversiones Suramericana S.a. · BVC:GRUPOSURA

Grupo De Inversiones Suramericana — Q3 2019 Earnings Presentation

23 slides from Grupo De Inversiones Suramericana's earnings presentation, November 2019

  1. Slide 1: Q3 2019 Results Presentation

    Q3 2019 R E S U LT S P R E S E N TAT I O N TORRES DEL PAINE, CHILE 1

  2. 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

  3. Slide 3: Agenda

    AGENDA Suramericana SURA Grupo SURA Asset Management Consolidated Results Insurance, Trends and Risk Pension funds, Savings Management and Investments 3

  4. Slide 4: Consolidated Results

    C O N S O L I D AT E D R E S U LT S MAR DEL PLATA, BUENOS AIRES, ARGENTINA 4

  5. Slide 5: Excellent results with positive operational performance

    EXCELLENT RESULTS WITH POSITIVE OPERATIONAL PERFORMANCE And return on investments that offset specific impacts in some operations OPERATING REVENUES OPERATING EXPENSES OPERATING INCOME • Double digit growth in main • Focus on efficiency and COP 2.4 tn COP COP 26.3% businesses cost control 16.2 tn •

  6. Slide 6: Equity growth

    EQUITY GROWTH Driven by increase in net income STATEMENT OF FINANCIAL POSITION CONSOLIDATED FINANCIAL DEBT 14% SEP - 19 DIC - 18 Var$ Var% Suramericana Cash, investments and investment 27,043 24,731 2,312 9.3% properties COP 51% Investments in associates 20,041 19,170 871 4.5% Grupo SURA Intangibles

  7. Slide 7: Organic growth, investment income

    ORGANIC GROWTH, INVESTMENT INCOME And equity method explain the operating and net income growth CONSOLIDATED INCOME STATEMENT SEP - 19 SEP - 18 Var$ Var% Retained premiums 8,176 7,728 448 5.8% Commission income 2,021 1,836 185 10.1% Revenues from services rendered 2,944 2,396 548 22.9% Investment in

  8. Slide 8: Consolidated net income grows 35%

    CONSOLIDATED NET INCOME GROWS 35% Driven by the results of associates and SURA AM, showing the benefits of a diversified portfolio GRUPO SURA & OTHER* COP +34,315 MM +35.0% +39.5% 37,863 2,304 22,920 1,492,831 244,659 (9,522) (19,249) +42.5% -24.0% 203,189 1,105,501 PARENT COMPANY´S (94,833) NET INC

  9. Slide 9: Portfolio's estimated value

    PORTFOLIO’S ESTIMATED VALUE Isn´t reflected in current market cap 3.9 0.5 35.1 4.1 28.9 9.3 6.2 7.3 10.0 SURA AM SURAMERICANA BANCOLOMBIA GRUPO GRUPO OTHER PORTFOLIO HOLDING´S DEBT PORTFOLIO CAP. NUTRESA ARGOS VALUE + PV OF TAXES & VALUE (-) BURSÁTIL EXPENSES DEBT M AR K E T C AP I TAL I Z AT I O N

  10. Slide 10: Consolidated Results

    C O N S O L I D AT E D R E S U LT S GUATAPÉ, ANTIOQUIA, COLOMBIA 10

  11. Slide 11: Suramericana continues with positive revenue growth

    SURAMERICANA CONTINUES WITH POSITIVE REVENUE GROWTH But specific impacts like in Argentina and Health sector in Colombia affected net income WRITTEN REVENUES FROM NET INCOME RETAINED PREMIUMS + REVENUES PREMIUMS SERVICES SERVICES RENDERED 2019 RENDERED COP COP COP 3% El Salvador 1% Dominican Rep. 9.

  12. Slide 12: Controlled claims and expenses

    CONTROLLED CLAIMS AND EXPENSES contrast with an increase in health costs and non-comparable expenses CLAIMS + ADJ. RESERVES: SERVICES RENDERED: TECHNICAL RESULT: % RET. PREMIUMS COSTS / REVENUES % OPERATING REVENUES 2,682,350 1,716,324 1,765,116 4,190,638 2,104,775 3,705,212 94.6% RETAINED PREMIUMS

  13. Slide 13: Lower net income

    LOWER NET INCOME Explained by macroeconomic situation in Argentina and Health Care segment SEGMENTO COP +65,372 MM C O R P O R AT I V O NET INCOME EXC. ARGENTINA +5.5% 20,816 -105% COP 394,843 398,400 MM -24.0% 10.1% 50,814 300,009 (116,110) 10,224 (58,403) (1,208) (966) ADJUSTED ROE*** 10.3% ADJUST

  14. Slide 14: Life segment: growth in premiums, lower claims

    LIFE SEGMENT: GROWTH IN PREMIUMS, LOWER CLAIMS and investment income offset higher VAT expenses in commissions 8% 14% Premium growth driven by Life Group Other Individual Life and Health. NET INCOME Constitution of reserves in the 32% quarter by normalization of the effect of COP 399,134 MM Workers’

  15. Slide 15: P&C segment

    P&C SEGMENT: Net income excluding Argentina would reach COP 93,000 MM with a 19.8% growth RETAINED PREMIUMS BY COUNTRY sep-19 %Var COP % Var ML Main impacts from Argentina Colombia 1,319 12.1% 12.1% NET INCOME Devaluation affects conversion to COP. Retained Chile 718 0.4% -2.5% premiums without Arge

  16. Slide 16: Health care segment: quarter's results

    HEALTH CARE SEGMENT: QUARTER’S RESULTS indicate the stabilization in claims ratio and the effects of initiatives for cost control YTD QUARTER NET INCOME COP 1,986 MM COP 18,063 MM REVENUES ON SERVICES COSTS / REVENUES 97% 21% SEP-19 %V A R SEP-19 SEP-18 EPS 2,607,229 24.7% 95.3% 91.8% REVENUES ADMIN

  17. Slide 17: Consolidated Results

    C O N S O L I D AT E D R E S U LT S MACHU PICCHU, PERÚ 17

  18. Slide 18: SURA AM: 52% growth in net income

    SURA AM: 52% GROWTH IN NET INCOME explained by return on legal reserves and operating growth TOTAL NET INCOME 7% Investment CLIENTS (CONTINUED OP.) Management Unit COP 4% El Salvador 20.2 million 677,096 million 2.3% 52.4% 31% Chile 22% Protección TOTAL AUM Include 141,000 new affiliates from tender

  19. Slide 19: Operating earnings grow 61%

    OPERATING EARNINGS GROW 61% Driven by return on legal reserves and steady growth in commission income OPERATING REVENUES + Var%: +9.9% +87.5% +407% +63.2% +361.5% +33.0% INSURANCE Local Currencies: +2.4% +86.7% +378% +55.6% +330.9% +24.5% MARGIN 65,781 42,231 2,411,588 255,788 152,985 81,287 COP 2.4

  20. Slide 20: Net income growth

    NET INCOME GROWTH driven mainly by mandatory pension business C O R P O R AT E SEGMENT +42.3% 46,218 +52.4% 275,278 (3,139) (6,209) 6,517 677,096 (44,721) (41,258) ADJUSTED ROE *** 444,410 8.5% ADJUSTED ROTE *** 30.5% NET INCOME MANDATORY VOLUNTARY ANNUITIES FX EFFECT* FINANCIAL INCOME TAX OTHER* NE

  21. Slide 21: 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 Alpha and leadership in returns COP 434 bn 23.4% in main funds OPERATING REVENUES PERU Morningstar recognition 20.4% 18.9% COP 1.97 bn COLOMBIA Equity method from Protección Focus on rejuven

  22. Slide 22: Voluntary business growth trend continues

    Voluntary business GROWTH TREND CONTINUES AUM SAVINGS & INVESTMENTS NET FLOW NET OPERATING REVENUES COP 3.8 bn • A&I: AUM with double digit growth in all COP 34.8 tn RETURNS countries COP 275,708 MM 30.0% COP 2.4 bn • IM: Advances in its objective of doubling AUM and participation of Alternative fun

  23. Slide 23: Investor relations contacts

    CEO: DAVID BOJANINI CFO: RICARDO JARAMILLO Head of IR: JUAN CARLOS GOMEZ jcgomez@gruposura.com.co IR Specialist: ANDRES ZULUAGA azuluagaa@gruposura.com.co (574) 3197039 www.gruposura.com.co 23

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