Grupo De Inversiones Suramericana S.a. · BVC:GRUPOSURA
Grupo De Inversiones Suramericana — Q1 2019 Earnings Presentation
24 slides from Grupo De Inversiones Suramericana's earnings presentation, May 2019
Slide 1: Q1 2019 Results Presentation
Q1 2019 R E S U LT S P R E S E N TAT I O N FOTO: JORGE A. ARANGO FUNDACIÓN HERENCIA AMBIENTAL 1
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: Agenda
AGENDA SURA Grupo SURA Suramericana Asset Management Consolidated Results Insurance, Trends and Risk Pension Funds, Savings Management and Investmets 3
Slide 4: Consolidated Results
C O N S O L I D A T E D RESULTS FOTO: STEVE W INTER NATIONAL GEOGRAPHIC 4
Slide 5: Highest net income figure in recent quarters
HIGHEST NET INCOME FIGURE In the last 16 quarters, driven by positive results in the different business lines CONSOLIDATED OPERATING REVENUES NET INCOME Businesses continue COP • Operating • Fx effect at COP with positive dynamics growth holding company in growth and 5.0 tn 560,272 MM operating resu
Slide 6: Balance sheet strength
BALANCE SHEET STRENGTH: Growth in total equity driven by organic growth, compensating divestment of annuities business in Chile ESTADO DE SITUACIÓN FINANCIERA MAR-19 DEC-18 VAR% VAR$ Cash, investments and CONSOLIDATED FINANCIAL DEBT investment properties 25,889 24,731 4.7% 1,157 Investments in assoc
Slide 7: Deleveraging process and investment capacity as holding company
WE CONTINUE MANAGING Deleveraging process and investment capacity as the holding company INDIVIDUAL DEBT INDIVIDUAL DEBT MATURITY PROFILE (HOLDING) 1,746 USD 23.9% 952 COP 699 4.9 tn 201 245 448 166 289 100 98 0.9% - - COP 76.1% 2019 2020 2021 2022 2023 2024 2026 - 2029 2030 - 2049 BANKS INTERNATION
Slide 8: Operating earnings
OPERATING EARNINGS Grew 52.1% driven by higher yields on investment portfolios and revenues via equity method CONSOLIDATED INCOME STATEMENT MAR-19 VAR$ VAR% Operating earnings excluding return on legal Retained premiums 2,481 (77) -3.0% reserves grow 32% Commission income 654 41 6.7% New accounting
Slide 9: Positive contribution of all businesses
POSITIVE CONTRIBUTION OF ALL BUSINESSES To growth in consolidated net income growth GRUPO SURA & OTHER* COP +50,213 MM +80.6% 67,957 1,953 835 (5,619) (14,912) +46.6% 560,274 86,301 +72.6% 95,888 +17.6% 17,719 310,153 PARENT COMPANY’S NET INCOME COP 500,120 MM 85.9% NET NET INCOME NET INCOME EQUITY
Slide 10: Our portfolio
OUR PORTFOLIO Estimated value 4.2 0.5 35.0 4.2 30.1 9.3 4.9 6.9 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 11: Consolidated Results
C O N S O L I D AT E D R E S U LT S FOTO: STEVE W INTER NATIONAL GEOGRAPHIC 11
Slide 12: Suramericana continues consolidating
SURAMERICANA CONTINUES CONSOLIDATING Its regional platform and posted growth in operating results and net income RETAINED PREMIUMS + REVENUES WRITTEN REVENUES FROM TECHNICAL NET INCOME SERVICES RENDERED 2019 PREMIUMS SERVICES RESULT GROWS RENDERED COP 3% El Salvador 1% Rep. Dominicana COP COP 2.9 bn
Slide 13: Growth in technical result
GROWTH IN TECHNICAL RESULT Due to revenue growth and positive adjustment of reserves RETAINED PREMIUMS + REVENUES FROM SERVICES CLAIMS + ADJ. RESERVES: SERVICES RENDERED: TECHNICAL RESULT: % RET. PREMIUMS COSTS / REVENUES % OPERATING REVENUES 91.3% 93.4% COP 3.2 trillion 1,259,250 1,204,581 828,967
Slide 14: Contribute to net income growth
Insurance business and corporate segment CONTRIBUTE TO NET INCOME GROWTH C O R P O R AT E COP +13,658 MM SEGMENT +17.6% 10,411 1,411 118,308 +2.4% +7.3% -2.5% 2,697 1,854 (490) 597 1,239 100,590 ADJUSTED ROE*** 13.3% ADJUSTED ROTE*** 17.4% NET LIFE PROPERTY & HEALTH OPER. INTEREST TAXES OTHER** NET
Slide 15: Life segment
LIFE SEGMENT: Operating growth and investment income drive increase in net income 8.6% 13.5% Other Individual Life Positive growth dynamics NET INCOME Mexico Life insurance operation 32.7% PRIMAS COP 116,078 MM Workers’ Comp. RETENIDAS 21.2% Group Life Lower claims and adjustement of reserves 2.4% H
Slide 16: P&C segment
P&C SEGMENT: Investment income offset higher taxes and Argentina´s hyperinflation effect 20% Other 48% Car NET INCOME Premium growth affected by devaluation of 3% Theft PRIMAS Argentinean Peso Adjusted* 3% Civil Liability RETENIDAS Combined ratio of 105.5%, 86 pbs higher tan 1% Compliance POR SOLUCI
Slide 17: Health care segment
HEALTH CARE SEGMENT Revenues and technical result continue posting double digit growth NET INCOME COP 18,786 MM ( - 2 . 5 % ) REVENUES ON SERVICES COSTS / REVENUES REVENUES & COST RATIO: ADMIN EXPENSES M AR -19 %V A R M AR-19 M AR -18 88.4% 86.9% EPS 812,854 24.3% 94.0% 91.4% 1,042,653 837,415 IPS 1
Slide 18: Seguros, Tendencias y Riesgos
Seguros, Tendencias y Riesgos C O N S O L I D AT E D R E S U LT S FOTO: JORGE A. ARANGO FUNDACIÓN HERENCIA AMBIENTAL 18
Slide 19: SURA AM
SURA AM: Steady fee growth and return on legal reserves drive Q1 results 8% Investment Management Unit 4% El Salvador TOTAL NET INCOME Annuities CLIENTS (CONTRIB. TO G.SURA) business in COP Chile isn´t 23% Protección 30% Chile TOTAL AUM 20.2 million 227,922 million consolidated in Q1-2019 results CO
Slide 20: Operating results
OPERATING RESULTS Driven by return on legal reserves and revenues via equity method OPERATING REVENUES + Var%: +6.0% +259.2% +1006% +4.0% +296.8% +36.0% INSURANCE Local Currencies: +2.4% +260.0% +967% +3.0% +290.9% +31.7% MARGIN 17,503 793,362 1,353 793,362 111,174 COP Million 30,825 48,965 583,542
Slide 21: SURA AM's net income growth
Mandatory pension business explains SURA AM’s NET INCOME GROWTH C O R P O R AT E SEGMENT +58.7% 116,857 1,569 (4,492) (8,941) +72.6% (9,106) 227,922 ADJUSTED ROE*** 132,034 6.9% ADJUSTED ROTE*** 27.3% NET MANDATORY VOLUNTARY ANNUITIES FX EFFECT* OTHER** NET INCOME (CONT. OP.) INCOME 2018 2019 *FX Ef
Slide 22: Mandatory business
Mandatory business RETURN ON LEGAL RESERVE EXPLAINS GROWTH IN NET INCOME AUM MEXICO OPERATING REVENUES COP 390 bn 19.2% Alpha and leadership in returns in main funds PERU 13.0% COP 660,035 MM 11.0% Equity method from Protección Digital transformation as enabler 38.4% SALARY BASE COP 40.2 bn 8.7% COM
Slide 23: Voluntary business
Voluntary business CONTINUES BUILDING REGIONAL PLATFORM AUM SAVINGS AND INVESTMENT FLUJO NETO • 19 Products launched in Q1-2019, COMMISSION INCOME COP 1.0 bn reaching a total of 372 portfolios COP 29.8 bn RENDIMIENTO • Priorities in 2019 for IM Unit: COP 60,336 MM COP 0.9 bn • Adapt organizational s
Slide 24: Investor relations contacts
CEO: DAVID BOJANINI CFO: RICARDO JARAMILLO Gerente IR: JUAN CARLOS GOMEZ jcgomez@gruposura.com.co Especialista IR: ANDRES ZULUAGA azuluagaa@gruposura.com.co (574) 3197039 www.gruposura.com.co 24
Grupo de Inversiones Suramericana — Q1 2019 Earnings Presentation on 6ix