Grupo De Inversiones Suramericana S.a. · BVC:GRUPOSURA
Grupo De Inversiones Suramericana — Grupo SURA — Q2 2019 Earnings Presentation
69 slides from Grupo De Inversiones Suramericana's earnings presentation, October 2019
Slide 1: Grupo SURA Corporate Presentation Q2-2019
Grupo SURA Corporate Presentation Q2-2019
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: Latam Economies
Latam Economies CHILE COLOMBIA PERU MEXICO moderation of not ready to ease expecting better monetary policy consumption growth yet second half year easing increased reflecting fall in growth both locally and confidence externally 2.5% 3.0% 3.1% 0.2% - 0.7% GDP GDP GDP GDP 2.0% 4.25% 2.50% 8.0% Curre
Slide 4: Leading Financial Services Group in Latam
Leading Financial Services Group in Latam with a solid and diversified portfolio 11 countries 51 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 establ
Slide 5: Diversified Investment Portfolio
Diversified Investment Portfolio and other investments Cement, energy Insurance, trends and infrastructure and risk management 35.2% S TAKE * 1.4% 81.1% S TAKE 11.5% 20.2% 11.7% USD Processed food 10.8bn 35.2% S TAKE 26.3% Pensions, asset and 29.0% wealth management 83.6% S TAKE Universal banking 46
Slide 6: 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 SERVICES OPTIMIZATION leader in Colombia divestment of annuities business (Chile and Peru) 6
Slide 7: 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 8: Geographic Footprint
Geographic Footprint P O P U L AT I O N CLIENTS FINANCIAL SERVICES 520MM 51MM +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 3.1% 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 9: 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 10: 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 11: Grupo SURA's Financials Evolution
Grupo SURA’s Financials Evolution CONSOLIDATED REVENUES* HOLDING COMPANY RECEIVED DIVIDENDS 313 311 6.2% -0.8% 6.6% ~3.4x 287 265 31.2% 6,433 2010 Dividends 253 6,083 6,032 5,730 187 Bancolombia 4,368 171 S U R A AM 138 G r u p o Ar g o s 92 94 Grupo Nutresa Protección Suramericana Other 2015 2016 2
Slide 12: Adjusted ROE
ADJUSTED ROE With an upward trend ADJUSTMENTS TO ROE Net Income: • Addback of non-cash expenses related to M&A 12% 10.2% 11% Equity 9.3% 9.1% • Associates and their portfolios, which are valued close to market prices 9.7% 10.1% 9.1% Normalized Adjusted ROE • Returns on legal reserves from mandatory
Slide 13: Our Portfolio
OUR PORTFOLIO Estimated value 1.2 0.2 10.8 1.3 9.0 2.8 1.8 >30% 6.1 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 impli
Slide 14: 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 » NET DEBT/ 300 DIVIDENDS (FTM) 73 137 163 49 86 30 29 4.89x 18 - Max. 5x - 2019 2020 2021 2022 2023 2024 2026 . 2029 2030 . 2049 BANKS INTERNATIONAL LOCAL BONDS REPOS LIQUIDITY BONDS 1.0x » F I N A N C I A L D
Slide 15: Continues Positive Trend in Operating and Net Income
CONTINUES POSITIVE TREND IN OPERATING AND NET INCOME good revenue growth with specific impacts on the expenses of some operations OPERATING EARNINGS OPERATING REVENUES OPERATING EXPENSES USD 482 MM USD • Operating growth USD Improvements in claims ratio and expense control 23.7% 3.3 bn • Investment
Slide 16: Consolidated Net Income Grows 37.4%
CONSOLIDATED NET INCOME GROWS 37.4% even with non-comparable effects in Suramericana GRUPO SURA & OTHER* USD +13 MM +37.4% +42.5% 0 7 298 13 51 -2 -5 +48.1% 217 -33.0% 44 -27 PARENT COMPANY’S NET INCOME USD 265 MM 42.4% NET NET INCOME NET INCOME EQUITY FX EFFECT ADMIN. INTEREST OTHER TAXES NET INCOM
Slide 17: 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 36% countries of GWP outside Colombia #1 INSURANCE 22,100 Business lines COMPANY agents 46% P&C 20,400 in Colombia w
Slide 18: 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 19: 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 19
Slide 20: Design
Design Today´s markets Trends MANAGE Strategic UNCERTAINTY Emerging Operational Risks FROM SOLVE TO EMPOWER BALANCE FINANCING - MANAGING Segments Products Finance Solutions Manage Competence
Slide 21: Design
Design SURA today Trends MANAGE Strategic UNCERTAINTY Emerging Operational Risks FROM SOLVE TO EMPOWER BALANCE FINANCING - MANAGING Segments Products Finance Solutions Manage Competence
Slide 22: Design
Design SURA in the future Trends MANAGE Strategic UNCERTAINTY Emerging Operational Risks FROM SOLVE TO EMPOWER BALANCE FINANCING - MANAGING Segments Products Finance Solutions Manage Competence
Slide 23: Common focus in all countries
Common focus in all countries • Ability to read the eviroment 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 24: Suramericana's Financials Evolution
Suramericana’s Financials Evolution OPERATING REVENUES CLAIMS AND EXPENSE RATIO 3.9% 6.6% 5,083 22.4% 4,769 93.3% 92.3% 94.6% 93.4% 95.3% 4,588 1,121 55.2% 3,748 820 1,018 59.4% 60.4% 59.4% 54.8% 685 3,962 53.9% 3,769 3,751 2,415 3,062 570 15.6% 16.6% 15.5% 15.3% 15.1% 1,845 2015 2016 2017 2018 2019
Slide 25: Suramericana Continues with Positive Growth Dynamic
SURAMERICANA CONTINUES WITH POSITIVE GROWTH DYNAMIC in revenues and consolidating its regional operations RETAINED PREMIUMS + REVENUES WRITTEN REVENUES FROM NET INCOME PREMIUMS SERVICES SERVICES RENDERED 2019 RENDERED 3% El Salvador 1% Dominican Rep. USD USD USD 3% Panam 2% Uruguay 1.9 bn 573 MM 54.
Slide 26: 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 45 growth potential the world 34 29 88% 6% 6% AUM AUM AUM 20 3 5 AUM AUM AUM USD 127 bn USD 9.9 bn U
Slide 27: 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 28: 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 Q2-2019 (YTD) COMMISSION OPERATING
Slide 29: 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 Q2-2019 (YTD) OPERATING AUM AUM GROWTH REVENUES +18.8%
Slide 30: 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 Q1-2019 COMMISSION AUM AUM GROWTH INCOME -6.4% USD 13.5MM USD 1
Slide 31: SURA AM's Financials Evolution
SURA AM’s Financials Evolution AUM COMMISSION INCOME 142,971 652 681 125,549 130,569 589 614 561 72 76 101,292 105,752 51 65 45 580 605 516 537 549 4.9% 4.3% 6.1% 4.6% CAGR 4.4% 18.7% 4.0% 9.5% Mandatory 4.6% Voluntary 16.0% 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 Mandatory pension LTM Vol
Slide 32: SURA AM: stable business dynamics and return on encaje
SURA AM: stable business dynamics and return on “encaje” drive increase in net income 7% Investment Management Unit TOTAL NET INCOME CLIENTS (CONTRIB. GIS) 4% El Salvador USD 23% Protección 20.2 million 135 million (Colombia) TOTAL AUM 31% Chile 1.9% 48.1% USD 143 bn 15.4% ALPHA AND LEADERSHIP IN RE
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 26.6% 26.2% 16.2%
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 15.5 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: SURA Ventures
SURA Ventures FINTECH Robo-advisory 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 FUN
Slide 37: Appendix
38 » APPENDIX GRUPO surda WW 7 A
Slide 38: Diversification
Diversification DIVERSIFIED DIVIDEND STREAM CONSOLIDATED FIGURES Grupo Argos 9% Country Clients Revenues Net Income Assets Grupo Nutresa 10% COLOMBIA 28 57.6% 60.1% 54.9% SURA Asset Management By 43% CHILE 4 16.2% 12.5% 21.4% Company Bancolombia MEXICO 8 9.5% 14.5% 10.7% 21% PERÚ 2 2.5% 10.0% 4.7% S
Slide 39: Shareholding Structure
Shareholding Structure 26.9% Gru po Argos and 33.4% subsidiarie s Total Outstanding Shares 10.5% Gru po Nutresa 13.0% 28.9% Colombian Pe nsion 581,977,548 21.9% Funds (COMM) (COMM + PREF) Outstanding Outstanding 15.4% Inte rnational Funds 13.9% Common Shares Pref. Shares 4.2% Retail Investo rs 80.6%
Slide 40: Cross Holding Structure
Cross Holding Structure FINANCIAL SERVICES 13% 34%* 35% 35% PROCESSED FOOD INFRASTRUCTURE 12% 10% 41 Stakes in common shares as of December 31, 2018 *Includes stake held in Grupo SURA by Cementos Argos which owns 6% of Grupo SURA’s common shares.
Slide 41: 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 42: 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 43: 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 44: Main Characteristics per Country
Main Characteristics per Country 45
Slide 45: Main Characteristics per Country (contd.)
Main Characteristics per Country (contd.) 46
Slide 46: 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 47: 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 48: Ranking: Insurance companies in Latam
Ranking: Insurance companies in Latam No. Group GWP (million USD) % Growth Market Share Country 2016 2017 2017 2017 1 BRADESCO Brazil 11,663 12,948 11% 8.2 % 2 BrazilPREV1 Brazil 12,795 11,992 -6% 7.6 % 3 MAPFRE Spain 8,096 9,155 13% 5.8 % 4 ITAÚ Brazil 6,382 7,579 19% 4.8 % 5 ZURICH Switzerland 5,9
Slide 49: Market Share 2018
Market Share 2018 MÉXICO 23° 7% 6° 0.78% REPÚBLICA DOMINICANA 1° 18.45% EL SALVADOR PANAMÁ 23.17% 1° 4° COLOMBIA 9.7% Brazil 28° 0.64% 1° 13.93% URUGUAY CHILE 3° 7.16% ARGENTINA 11° Market share 3.03% Ranking 50
Slide 50: 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 51: Insurance Market Penetration
Insurance Market Penetration País 2015 2016 2017 Chile 4.7% 5.0% 4.6% Brazil 3.1% 3.3% 3.2% Argentina 3.1% 3.0% 2.9% Colombia 2.7% 2.8% 2.9% Panamá 2.7% 2.5% 2.4% Uruguay 2.4% 2.4% 2.7% El Salvador 2.4% 2.3% 2.2% México 2.1% 2.3% 2.2% Rep. 1.2% 1.2% 1.4% Dominicana 52 Fundación Mapfre 2017
Slide 52: Q2-2019 Results
53 » Q2-2019 Results GRUPO surda WW 7 A
Slide 53: Continues Positive Trend in Operating and Net Income
CONTINUES POSITIVE TREND IN OPERATING AND NET INCOME good revenue growth with specific impacts on the expenses of some operations OPERATING EARNINGS OPERATING REVENUES OPERATING EXPENSES COP 1.54 tn COP • Operating growth COP Improvements in claims ratio and expense control 23.7% 10.5 tn • Investmen
Slide 54: Balance Sheet Strength: Growth in Total Equity
BALANCE SHEET STRENGTH: GROWTH IN TOTAL EQUITY driven by organic growth in insurance and higher returns on the investment portfolios STATEMENT OF FINANCIAL POSITION JUN-19 DEC-18 VAR% VAR$ Cash, investments and CONSOLIDATED FINANCIAL DEBT investment properties 25,829 24,731 4.4% 1,098 Investments in
Slide 55: We Continue Managing Deleveraging Process
WE CONTINUE MANAGING deleveraging process and investment capacity as the holding company INDIVIDUAL DEBT I N D I V I D U A L D E B T M AT U R I T Y P R O F I L E (HOLDING) 1,763 USD 17.3% 962 COP 4.7 tn 233 440 521 274 6% 157 95 93 59 - - COP 2019 2020 2021 2022 2023 2024 2026 - 2029 2030 - 2049 82.
Slide 56: Operating Earnings Grow 23.7%
OPERATING ERANINGS GROW 23.7% driven by investment income and equity method CONSOLIDATED INCOME STATEMENT JUN-19 VAR$ VAR% Retained premiums 5,332 193 3.8% Operating earnings excluding return on legal reserves grow 8.0% Commission income 1,334 111 9.1% Revenues from services rendered 1,905 342 21.9%
Slide 57: Consolidated Net Income Grows 37.4%
CONSOLIDATED NET INCOME GROWS 37.4% even with non-comparable effects in Suramericana GRUPO SURA & OTHER* COP +40,436 MM +37.4% +42.5% 4 21,708 950,715 41,429 164,095 (5,403) (17,302) +48.1% -33.0% 139,792 691,914 (85,521) PARENT COMPANY’S NET INCOME COP 846,720 MM 42.4% NET NET INCOME NET INCOME EQU
Slide 58: Our Portfolio
OUR PORTFOLIO Estimated value 4.0 0.5 34.6 4.0 29.9 9.1 4.7 7.0 10.0 SURA AM SURAMERICANA BANCOLOMBIA GRUPO GRUPO OTHER PORTFOLIO DEBT PORTFOLIO CAP. NUTRESA ARGOS VALUE (HOLDING) VALUE (-) BURSÁTIL DEBT M AR K E T C AP I TAL I Z AT I O N SHARES ADTV COMMON SHARE (Mar. 31, 2019) (COMMON + PREF) PRIC
Slide 59: Suramericana Continues with Positive Growth Dynamic
SURAMERICANA CONTINUES WITH POSITIVE GROWTH DYNAMIC in revenues and consolidating its regional operations RETAINED PREMIUMS + REVENUES WRITTEN REVENUES FROM NET INCOME PREMIUMS SERVICES SERVICES RENDERED 2019 RENDERED 3% El Salvador 1% Dominican Rep. COP COP COP 3% Panam 2% Uruguay 6.2 tn 1.8 tn 173
Slide 60: Positive Revenue Growth
POSITIVE REVENUE GROWTH net income impacted by specific expenses in some operations RETAINED PREMIUMS + REVENUES FROM SERVICES CLAIMS + ADJ. RESERVES: SERVICES RENDERED: TECHNICAL RESULT: % RET. PREMIUMS COSTS / REVENUES % OPERATING REVENUES COP 2,526,361 2,705,367 1,742,373 6.9 trillion 1,367,928 1
Slide 61: Lower Net Income
LOWER NET INCOME explained by specific impacts on the 3 business segments C O R P O R AT E COP +21,524 MM SEGMENT 259,292 -8.4% -36.3% (21,178) -33.0% (24,365) 17,639 2,624 173,771 714 547 ADJUSTED ROE*** (61,501) 10.7% ADJUSTED ROTE*** 13.9% NET LIFE PROPERTY & HEALTH OPER. INTEREST TAXES OTHER** N
Slide 62: Life Segment: Premium Growth
LIFE SEGMENT: PREMIUM GROWTH and control in claims ratio don´t offset higher expenses due to VAT on commissions paid 8% 12% Other Individual Life Double digit growth in premiums, even with the NET INCOME accounting effect on healthcare premiums 33% RETAINED Positive net adjustment of reserves offset
Slide 63: P&C Segment
P&C Segment: higher reinsurance costs and Argentina’s hyperinflation effect negatively impact results 20% Other 47% Car Organic growth in premiums offsets negative NET INCOME effect from Argentinean peso’s devaluation 3% Theft Combined ratio reaches 105.3% with 88 bps Adjusted* 3% Civil liability RE
Slide 64: Health Care Segment: Current Market Conditions
HEALTH CARE SEGMENT: CURRENT MARKET CONDITIONS reflect on a high client growth and higher claims ratio NET INCOME COP -16,077 MM REVENUES ON SERVICES COST S / REVENUES REVENUES ADMIN EXPENSES JUN-19 %VAR JUN-19 JUN-18 COST RATIO: EPS 1,679,571 22.7% 96.2% 91.2% 86.6% 90.0% 196,205 230,571 IPS 300,65
Slide 65: SURA AM: stable business dynamics and return on encaje
SURA AM: stable business dynamics and return on “encaje” drive increase in net income 7% Investment Management Unit TOTAL NET INCOME CLIENTS (CONTRIB. GIS) 4% El Salvador COP 23% Protección 20.2 million 430,372 million (Colombia) TOTAL AUM 31% Chile 1.9% 48.1% COP 458 tn 15.4% ALPHA AND LEADERSHIP I
Slide 66: Operating Results
OPERATING RESULTS reflect return on “encaje” and stable growth in fee income OPERATING REVENUES + Var%: +9.4% +93.5% +1048% -12.9% +295.7% +31.6% INSURANCE Local Currencies: +2.5% +93.5% +981% -16.0% +23.9% MARGIN 194,917 (8,122) 32,074 1,547,102 95,587 57,103 COP 1.55 1,175,543 trillion +371,559 MM
Slide 67: Net Income Growth
NET INCOME GROWTH driven mainly by mandatory pension business C O R P O R AT E SEGMENT +48.0% +56.8% 202,757 1,831 427,111 (7,223) (13,174) (29,547) ADJUSTED ROE*** 272,467 7.3% ADJUSTED ROTE*** 27.7% NET MANDATORY VOLUNTARY ANNUITIES FX EFFECT* OTHER** NET INCOME PENSION (CONT. OP.) INCOME 2018 201
Slide 68: Mandatory Pensions: Return on Encaje and Commercial Activity
MANDATORY PENSIONS: RETURN ON “ENCAJE”AND COMMERCIAL ACTIVITY overcome impact from lower fees in some countries AUM MÉXICO COP 405 tn 23.7% Alpha and leadership in returns OPERATING REVENUES in main funds PERÚ 16.4% 14.0% Equity method from Protección COP 1.31 tn COLOMBIA Peru: bidding process for n
Slide 69: Voluntary Savings Business
Voluntary Savings business BETTER GROWTH DYNAMICS DURING THE QUARTER AUM SAVINGS AND INVESTMENT NET FLOW NET OPERATING REVENUES COP 2.3 bn • A&I: AUM growth offset pressure from COP 31.8 tn RETURNS lower fees COP 186,193 MM 24.2% COP 1.6 bn • IM: 21 funds launched YTD and new insurance mandates vs.