Grupo De Inversiones Suramericana S.a. · BVC:GRUPOSURA
Grupo De Inversiones Suramericana — Grupo SURA — Q4 2018 Earnings Presentation
50 slides from Grupo De Inversiones Suramericana's earnings presentation, Jul 8, 2019
Slide 1: Grupo SURA Corporate Presentation Q4-2018
Grupo SURA Corporate Presentation Q4-2018
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 #1 PENSION FUND #1 INSURANCE #1 COLOMBIAN RELEVANT MANAGER COMPANY BANK CLIENT BASE in Latam, with a in Colombia, with an with a leading in attractive markets growing voluntary established growth presence in Central savings business platform in Latam America
Slide 4: Diversified Investment Portfolio
Diversified Investment Portfolio and other investments Cement, energy Insurance, trends and infrastructure and risk management 35.5% S TAKE * 0.7% 81.1% S TAKE 12.1% 21.9% 11.8% USD Processed food 9.9bn 35.2% S TAKE 22.3% Pensions, asset and 31.3% wealth management 83.6% S TAKE Universal banking 46.
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 SERVICES OPTIMIZATION leader in Colombia divestment of annuities business (Chile and Peru) 5
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 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 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. ALIGN
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 309 324 12.0% -0.8% ~3x 283 261 31.2% 2010 Dividends 250 6,921 6,921 6,867 6,867 6,182 6,182 185 Bancolombia 4,712 4,712 169 S U R A AM 137 G r u p o Ar g o s 91 93 Grupo Nutresa Protección Suramericana Other
Slide 11: 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) 220 55 77 141 52 91 31 31 4.7x - - - Max. 5x 2018 2019 2020 2021 2022 2023 2024 2026 . 2029 2030 . 2049 BANKS INTERNATIONAL LOCAL BONDS REPOS BONDS LIQUIDITY 1.1x » F I N A N C I
Slide 12: 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 32% countries of GWP outside Colombia #1 INSURANCE 22,100 Business lines COMPANY agents 43% P&C 20,400 in Colombia w
Slide 13: 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 14: 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 14
Slide 15: Being Relevant to Clients
Being Relevant to Clients RELEVANT SOLUTIONS Introducing life solutions to other countries CHANNELS › Develop SME segment Multichannel approach 17% › Multidimensional segmentation › Direct 35% › Develop solutions for emerging risks: › Digital 19% • CYBER RISK › Affinity • AGRICULTURE › Sustainable B
Slide 16: Suramericana's Financials Evolution
Suramericana’s Financials Evolution OPERATING REVENUES CLAIMS AND EXPENSE RATIO 22.4% 4,950 3.6% 5,127 93.3% 92.3% 94.6% 94.5% 1,080 55.2% 4,043 884 59.4% 60.4% 59.4% 739 4,066 4,047 54.8% 2,605 3,304 615 15.6% 16.6% 15.5% 15.5% 1,990 2015 2016 2017 2018 2015 2016 2017 2018 Insurance GWP Retained cl
Slide 17: SURA Asset Management
SURA Asset Management MANDATORY WEALTH ASSET PENSION MANAGEMENT MANAGEMENT Highly-regulated market Underpenetrated Regional platform AUM (bn) Stable cash flow business with high connecting Latam to 44 generation growth potential the world 30 30 88% 6% 6% AUM AUM AUM 19 3 5 AUM AUM AUM USD 113 bn USD
Slide 18: Sustainability of Mandatory Business
Sustainability of Mandatory Business Relationship with Closeness in the stakeholders, seeking the Efficient and innovative relationship with clients. improvement of pension Business Models. systems and its understanding . MARKET MILLION COST INCOME SHARE AUM CLIENTS 18 23% 18.5 32% As of December 31
Slide 19: Transformation of Wealth Management Business
Transformation of Wealth Management Business Brand positioning Advice and From products to Attraction of new “Inversiones SURA”. recommendation of solutions increasing clients and cross-sell investment and savings . value proposition. to existing clients. AUM AUM GROWTH > 1.3 MILLION CLIENTS 19 USD
Slide 20: Development of the Asset Management Business
Development of the Asset Management Business Regional platform with High standards in Relationship with scalable operation portfolio management institutional clients and models. backed by SURA’s product development reputation. in Latam. AUM GROWTH AUM AUM WITH ALPHA 20 USD 11.2 bn +6.0% +73% As of D
Slide 21: SURA AM's Financials Evolution
SURA AM’s Financials Evolution AUM COMMISSION INCOME 123,846 128,798 642 581 606 104,317 554 71 99,918 51 64 44 572 530 542 509 4.4% 18.7% 4.0% 4.9% 4.3% 6.0% CAGR Mandatory 3.4% Voluntary 14.2% 2015 2016 2017 2018 2015 2016 2017 2018 Mandatory pension Voluntary business RETURN ON LEGAL RESERVE OPER
Slide 22: Bancolombia
Bancolombia COLOMBIA’S LEADING OVER 13 MM CLIENTS FINANCIAL INSTITUTION with access to a strong with a strong presence in distribution network Central America 5,939 ATMs, 1,022 branches and 12,395 banking kiosks LOANS FUNDING MARKET SHARE COLOMBIA SALVADOR PANAM A Loans Loans Loans 26.2% 25.9% 10.6%
Slide 23: 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 24: 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 balanced portfolio in # 2 in RMC and # 4 in regions, c
Slide 25: SURA Ventures
SURA Ventures FINTECH Robo-advisory Personal finance platform Mortgage digital market place H E ALT H T E C H Optimizing access to cancer Health tech operator Optimizing Access to health systems clinical trials INSURETECH Digital insurance Mobile sensor data for On-demand Health ecosystem – road saf
Slide 26: Appendix
26 » APPENDIX GRUPO surda WW 7 A
Slide 27: Diversification
Diversification DIVERSIFIED DIVIDEND STREAM CONSOLIDATED FIGURES Grupo Argos 9% Country Clients Revenues Net Income Assets Grupo Nutresa 10% COLOMBIA 28 56.5% 52.5% 50.6% SURA Asset Management By 43% CHILE 4 16.4% 14.4% 27.5% Company Bancolombia MEXICO 8 10.1% 18.7% 9.6% 21% PERÚ 2 2.2% 9.5% 4.4% Su
Slide 28: Shareholding Structure
Shareholding Structure 27.1% Gru po Argos and 33.7% subsidiarie s Total Outstanding Shares 10.5% Gru po Nutresa 13.1% 28.5% Colombian Pe nsion 581,977,548 21.5% Funds (COMM) (COMM + PREF) Outstanding Outstanding 16.0% Inte rnational Funds 14.5% Common Shares Pref. Shares 4.2% Retail Investo rs 80.6%
Slide 29: Cross Holding Structure
Cross Holding Structure FINANCIAL SERVICES 13% 34%* 35% 35% PROCESSED FOOD INFRASTRUCTURE 12% 10% 29 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 30: 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 31: Main Characteristics per Country
Main Characteristics per Country 31
Slide 32: Main Characteristics per Country (contd.)
Main Characteristics per Country (contd.) 32
Slide 33: 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 34: 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 35: Q4-2018 Results
35 » Q4-2018 Results GRUPO surda WW 7 A
Slide 36: Highlights Grupo SURA
HIGHLIGHTS» GRUPO SURA • Year of important strategic decisions: affects comparability of figures but business continued with a positive operating dynamics • Growth of operating income in comparable terms: Life 15.8%, Non-Life 13.3%, Mandatory INVESTMENT 6.1%, Voluntary Savings 10.7%. PORTFOLIO* Othe
Slide 37: Statement of Financial Position
S TAT 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 Assets » Total Equity » dic-17 68,993,257 dic-17 26,226,561 + 2,080,115 + 674,352 3.0% 2.6% dic-18 71,073,373 dic-18 26,900,912 0.0 10 , 00 0,000.0 20 , 00 0,000.0 30 , 00 0,000.0 40 , 00 0,000.0 50 , 00 0,000.0 60 , 00 0,000.0 70
Slide 38: Estado de Resultado Integrales Consolidado
E S TA D O D E R E S U LTA D O S I N T E G R A L E S » CONSOLIDADO Var%: -4.2% +6.4% +21.3% -21.3% +0.6% -14.5% -24.0% -0.8% Total Revenues » 19,399,737 151,705 597,848 27,712 19,239,859 (471,787) (385,301) 6,775 (86,831) dic-17 19,399,737 -159,878 -0.8% dic-18 19,239,859 2017 Retained Commission Se
Slide 39: Statement of Comprehensive Income: Consolidated Net Income
S TAT 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 NET INCOME Net Income 2017 Net Income Discont. Oper. Grupo SURA and Other* 2017: COP 147,410 MM +7.6% -7.7% 1,454,616 51,400 10,594 77,619 1,406,349 18,281 63,936 1,343,286 (30,886) (56,224) (63,063) 1,307,207 (35,577) Net Inco
Slide 40: Highlights Suramericana
HIGHLIGHTS» SURAMERICANA RETAINED PREMIUMS + REVENUES FROM • Positive progress in the consolidation of a regional platform with presence in 9 countries SERVICES RENDERED 2018 • Slight decrease in written premiums explained by strategic decisions El Salvador Uruguay 2% Dom. Rep. • Revenue from servic
Slide 41: Statement of Comprehensive Income: Suramericana Consolidated
S TAT 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 Operating Revenues* » Claims + Reserve Adj.: % Retained Premiums Services Rendered: Costs / Revenues 93.3% 93.4% 5,798,128 5,232,046 dic-17 59.4% 54.8% 3,031,725 12,436,055 355,014 2,488,020 2.9% -9.8% 21.9% dic-18 12,791,069 +
Slide 42: Statement of Comprehensive Income: Suramericana Net Income
S TAT 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 FIGURES SURAMERICANA S.A. Corporate (Holding) Segment +3.6% 506,586 20,102 524,867 40,592 28,977 6,669 10,683 (50,198) (8,934) (29,609) Net Income Life Non-Life Health Care Exchange Admin. Interest Taxes Other** Net Income 2017
Slide 43: Life Insurance Segment
SURA INSURANCE, TRENDS AND RISK MANAGEMENT» LIFE INSURANCE SEGMENT Other Life Var%: +26.0% +8.2% -13.2% -9.1% -9.0% 7% 15% 148,345 (60,607) ARL (workers 556,382 comp) 506,184 (89,734) 34% RETAINED Group Life (48,202) PREMIUMS 21% Pension (D&S) 2% Health 21% 2017 Net Income Technical Admin. Investmen
Slide 44: Non-Life (P&C) Segment
SURA INSURANCE, TRENDS AND RISK MANAGEMENT» NON-LIFE (P&C) SEGMENT Var%: +2.8% -2.8% -2.1% -51.1% +157% -19.2% -18.8% Retained Premiums Retained Claims Ratio 39,049 dic-18 %Var %Var LC* dic-18 dic-17 (7,299) Auto 2,457,926 -7.1% 8.3% 58.5% 59.6% 32,065 58,243 182,989 Fire 765,997 28.9% 42.0% 21.3% 3
Slide 45: Health Care Segment
SURA INSURANCE, TRENDS AND RISK MANAGEMENT» HEALTH CARE SEGMENT Var%: +19.4% +12.3% +4.4% +35.7% +73.4% 72,428 690 68,446 (42,683) (1,458) 39,469 Services rendered Claims Ratio dic-18 %Var dic-18 dic-17 EPS 2,966,895 22.0% 93.6% 93.4% IPS 539,540 15.5% 69.2% 68.8% Dinámica 269,648 22.7% 71.3% 71.6%
Slide 46: Highlights SURA Asset Management
HIGHLIGHTS» SURA ASSET MANAGEMENT El Salvador 5% • Stable growth in the mandatory business; the voluntary continues with double-digit growth due Chile Colombia 32% to the contribution of the Investment Management and Savings and Investments units 24% • Normalized operating earnings grows 0.4% and co
Slide 47: SURA Asset Management Consolidated Results
SURA ASSET MANAGEMENT» CONSOLIDATED RESULTS Var%: +6.0% -38.5% 2,536,832 -93.1% +2.5% -56.4% -6.2% Operating Income + Insurance Margin» Local currencies: +6.6% 2,536,832 -38.6% -93.1% +2.1% -56.3% -5.8% 118,103 2,536,832 (66,515) 2,380,427 (190,064) 3,748 (21,677) dic-17 2,536,832 -156,405 -6.2% dic
Slide 48: Utilidad Neta SURA Asset Management
E S TA D O D E R E S U LTA D O S I N T E G R A L E S » UTILIDAD NETA SURA ASSET MANAGEMENT Income from discontinued operations Corporate (Holding) Segment 615,229 -8.7% -52.4% 50,731 432,321 476,898 21,780 370,998 37,405 2,779 291,082 (157,477) (141,239) Net Income Mandatory Voluntary Fx Impact Weal
Slide 49: Mandatory Pensions Business
SURA ASSET MANAGEMENT» MANDATORY PENSIONS BUSINESS Var%: +6.1% -93.4% -44.6% +5.3% +155.0% -9.3% -16.1% 107,609 955,256 27,431 801,516 Var$ Net (188,310) 18,843 Figures in COP MM Net Income Var $ Var$ income ex. (72,538) "Encaje" (46,776) "Encaje" Chile 287,531 (44,811) (66,185) 21,374 México 257,44
Slide 50: Voluntary Savings Business
SURA ASSET MANAGEMENT» VOLUNTARY SAVINGS BUSINESS VOLUNTARY SAVINGS AUM (trillion COP)* INVESTMENT MANAGEMENT AUM SAVINGS AND INVESTMENTS AUM 1.2% 35.9% 7.8% 17.7% 7.0% 7.1% 6.7% 25.2% 3.0% 22.0% 7.0% 8.3% dic-17 47.2 27.6 25.8 COP 34.7 tn +6.9% +6.0% 12.1 12.2 7.3 7.8 dic-18 51.7 2.3 3.1 3.8 4.1 0.