Grupo De Inversiones Suramericana S.a. · BVC:GRUPOSURA
Grupo De Inversiones Suramericana — Q4 2021 Earnings Presentation
43 slides from Grupo De Inversiones Suramericana's earnings presentation, Mar 30, 2022
Slide 1: Grupo SURA Corporate Presentation
C O R P O R AT E P R E S E N TAT I O N GRUPO SURA
Slide 2: Disclaimer
The forward-looking statements contained herein are based on DISCLAIMER Management’s current forecasts and outlook, which have been made under assumptions and estimates of the management of the Companies and may present variations. For better illustration and decision-making, figures for Suramerican
Slide 3: 2021 Update & Q4 results & evolution
2021 Update & Q4 results Company presentation & evolution
Slide 4: Diversified investment portfolio
Diversified investment portfolio Financial Services Industry 83.6% 81.1% 46.2% | 24.5% 35.6% 35.6% | 26.9% Voting shares Social capital #1 PENSION FUND #3 ASSURANCE #1 BANK One of the largest One of the most GROUP IN COLOMBIA food companies in important players in Latam, with a of Latin American wit
Slide 5: Growth history
Growth history And evolution of the strategy #1 in Colombia y #3 Latin America #1 Pension Fund Manager in the region #1 bank in Colombia and a leader in Central America 1944 / 1990 1990 / 2007 2007 / 2016 2017- LEADERSHIP FINANCIAL SERVICES INTERNATIONAL EXPANSION FOOTPRINT OPTIMIZATION IN INSURANCE
Slide 6: Regional footprint and diversification
Regional footprint and diversification DIVERSIFIED SOURCE OF DIVIDENDS (2020) MARKET CAP. Grupo Argos USD 4.0 bn Grupo 8% Jan 31, 2022 Nutresa SURA Asset 10% Management CREDIT RATINGS: 29% FITCH BB+ (Int) AAA (Col) S&P BB+ Bancolombia 36% Suramericana 17% 11 countries Caribe Otros 7% EEUU 3% 3% Pana
Slide 7: Grupo SURA financial metrics evolution
Grupo SURA financial metrics evolution CONSOLIDATED REVENUES (USD Bn) EQUITY METHOD (USD MM) 373 CAGR 15-21 6.6 335 13.8% 5.7 5.6 283 277 281 4.9 5.0 4.2 217 3.1 97 2015 2016 2017 2018 2019 2020 2021 2015 2016 2017 2018 2019 2020 2021 ADJUSTED ROE EVOLUTION CONSOLIDATED NET INCOME (USD MM) 10.9% 459
Slide 8: Growth in received dividends
Growth in received dividends Has allowed to decrease debt after the international expansión phase COP DENOMINATED DEBT (in COP MM) 2,675,861 DIVIDENDS RECEIVED BY GRUPO SURA (HOLDING) COP 913,028 MM (USD million) (USD ~ 229 MM) 1,762,833 300 277 280 254 237 Other 217 219 Protección 174 March 2017 De
Slide 9: Debt
Debt Debt profile aligned with cash flow generation INDICATORS 467 NET DEBT/ DIVIDENDS (LTM) 6.6x 137 NET DEBT/ 92 69 74 73 75 DIVIDENDS (FTM) 57 25 45 24 2022 2023 2024 2025 2026 2027 - … 2029 2030 - … 2032 - … 2040 - … 2049 4.0x Banks Local Bonds Repos International Bonds Max. 5x Individual Net De
Slide 10: Net income recovered in 2021 to pre-pandemic levels
Net income recovered in 2021 to pre-pandemic levels Driven by double-digit growth in all lines of revenue and operating expenses control Resultados Financieros TOTAL REVENUES SURAMERICANA WRITTEN PREMIUMS SURA AM COMISSIONS RESULTADOS COPFINANCIEROS 4 Tn of organic growth In addition to efficiency e
Slide 11: Initiatives to generate value for all shareholders
Initiatives to generate value for all shareholders Strategic priorities of last couple of years, with recent results and projections for the medium term Strategic Initiatives PROFITABILITY AND VALUE DELEVERING AND CAPITAL PREPARING FOR CAPITAL GENERATION OPTIMIZATION MARKETS WITH GREATER DEPTH • 202
Slide 12: Grupo SURA - ESG
Grupo SURA - ESG We promote the dynamics of economic growth, from a comprehensive and harmonious development HUMAN, SOCIAL AND NATURAL CAPITAL SUSTAINABLE INVESTMENT POLICY DEMOCRACY AND CITIZENSHIP • Policy update, with sector exclusions and risk prioritization • Promotion of citizen training, stre
Slide 13: Grupo SURA has been under passivity rule
Grupo SURA has been under passivity rule Valid from the request of the first takeover bid Public Acquisition Offer for Grupo SURA Passivity Rule • It aims to limit any information or decision that could be interpreted as interference with the offer • The Company, the Administration and the Board of
Slide 14: Increase in net income
Increase in net income Leveraged on revenue growth that shows the resilience and soundness of the companies in our portfolio C O N S O L I D AT E D I N C O M E S TAT E M E N T EVOLUTION IN PREMIUMS AND COMISSIONS INCOME 6.6 dic-21 dic-20 Var$ Var% 5.0 5.4 Written premiums 22,487 19,337 3,150 16.3% R
Slide 15: Net income closed the year in positive territory
Net income closed the year in positive territory Explained by the growth in premiums and the control of expenses that mitigates the higher claims rate WRITTEN PREMIUMS RETAINED CLAIMS % Retained earned premiums dic-21 dic-20 Var% 6.4 Written premiums 21,789 18,707 16.5% 5.7 68% 71% 71% 70% 71% Retai
Slide 16: Double-digit increase in operating revenues as of December
Double-digit increase in operating revenues as of December Supported in the growth in commission income and good levels of performance obtained with seed capital investments COMMISSION INCOME OPERATING EARNINGS OPERATING EARNINGS EXC. ENCAJE* * 664 684 687 637 621 383 dic-21 dic-20 Var$ Var% 291 312
Slide 17: Our Investments
Our Investments Subsidiaries Associates
Slide 18: Suramericana overview
#3 LATAM INSURANCE GROUP #1 INSURANCE COMPANY with an established growth platform in 9 in Colombia with top 5 positions in 4 countries Latam countries MULTICHANNEL APPROACH DIVERSIFIED BUSINESS MODEL developing new channels BY GEOGRAPHY BUSINESS LINES throughout the region 41% P&C +22k 34% 27% Life
Slide 19: Suramericana financial metrics evolution
Suramericana financial metrics evolution WRITTEN PREMIUMS (USD Bn) CLAIMS RATIO AND EXPENSE EFFICIENCY 5.8 5.0 67% 65% 65% 64% 65% 63% 4.6 71% 3.9 4.0 3.2 2.1 16% 17% 15% 16% 11.8% 15% 13.4% 2015 2016 2017 2018 2019 2020 2021 2015 2016 2017 2018 2019 2020 2021 % Administrative expense / Written prem
Slide 20: SURA Asset Management overview
RETIREMENT INVERSIONES INVESTMENT SAVINGS SURA (RETAIL MANAGEMENT (PENSION) INVESTING) (INSTITUTIONAL) Stable cash flow Underpenetrated Regional platform business business with high connecting Latam to growth potential the world 88% 6% 6% USD 142 bn AUM AUM AUM AUM AUM AUM AUM 21.6 MM USD 123 bn USD
Slide 21: SURA Asset Management financial metrics evolution
SURA Asset Management financial metrics evolution AUM (USD Bn) COMMISSION INCOME (USD MM) 710 142 132 610 624 121 558 108 504 526 73 86 101 105 480 62 44 56 82 85 39 601 496 538 537 442 460 471 2015 2016 2017 2018 2019 2020 2021 2015 2016 2017 2018 2019 2020 2021 Retirement Savings Inversiones SURA
Slide 22: Investments in publicly listed companies
Investments in publicly listed companies With leading positions in their respective industries #1 BANK IN COLOMBIA STRATEGIC FOCUS LARGEST PROCESSED FOODS with a relevant presence in Central in cement, energy and road and airport GROUP IN COLOMBIA with leading America concessions brands in the main
Slide 23: Our commitment to the harmonious development of society
Our commitment to the harmonious International standards development of society Prioritized SDG Evolution ESG Rating 2017 2018 2019 2020 2021 S&P (max. 100) 75 79 73 81 80 FTSE (max. 5) 3.9 3.8 4.1 3.3 3.4 MSCI (max. AAA) BBB BBB BB BBB BBB Global Initiatives Sustainalytics (max. 100) 47.9 43.3 47.1
Slide 24: Results and Appendix
Results and Appendix Q3-2021 Results Appendix
Slide 25: Net income recovered in 2021 to pre-pandemic levels
Net income recovered in 2021 to pre-pandemic levels Driven by double-digit growth in all lines of revenue and operating expenses control Resultados Financieros TOTAL REVENUES SURAMERICANA WRITTEN PREMIUMS SURA AM COMISSIONS RESULTADOS COPFINANCIEROS 4 Tn of organic growth In addition to efficiency e
Slide 26: Initiatives to generate value for all shareholders
Initiatives to generate value for all shareholders Strategic priorities of last couple of years, with recent results and projections for the medium term Strategic Initiatives PROFITABILITY AND VALUE DELEVERING AND CAPITAL PREPARING FOR CAPITAL GENERATION OPTIMIZATION MARKETS WITH GREATER DEPTH • 202
Slide 27: Grupo SURA - ESG
Grupo SURA - ESG We promote the dynamics of economic growth, from a comprehensive and harmonious development HUMAN, SOCIAL AND NATURAL CAPITAL SUSTAINABLE INVESTMENT POLICY DEMOCRACY AND CITIZENSHIP • Policy update, with sector exclusions and risk prioritization • Promotion of citizen training, stre
Slide 28: Grupo SURA has been under passivity rule
Grupo SURA has been under passivity rule Valid from the request of the first takeover bid Public Acquisition Offer for Grupo SURA Passivity Rule • It aims to limit any information or decision that could be interpreted as interference with the offer • The Company, the Administration and the Board of
Slide 29: Increase in net income
Increase in net income Leveraged on revenue growth that shows the resilience and soundness of the companies in our portfolio C O N S O L I D AT E D I N C O M E S TAT E M E N T EVOLUTION IN PREMIUMS AND COMISSIONS INCOME 6.6 dic-21 dic-20 Var$ Var% 5.0 5.4 Written premiums 22,487 19,337 3,150 16.3% R
Slide 30: Equity Method closes 2021 and the fourth quarter at record level
Equity Method closes 2021 and the fourth quarter at record level Due to the good levels of performance obtained by Bancolombia and Grupo Nutresa for the quarter EQUITY METHOD Accumulated Quarterly dic-21 dic-20 Var% 4Q2021 4Q2020 Var% Bancolombia 1,001 68 354 -65 Grupo Argos 43 -46 (9) -20 -54.4% Gr
Slide 31: Operating expenses increasing at lower rates than revenues
Operating expenses increasing at lower rates than revenues Which allowed a healthy recovery of the businesses in financial terms QUARTERLY EVOLUTION OF OPERATING EXPENSES CONSOLIDATED OPERATING EXPENSES 46.8% 46.7% Accumulated Quarterly dic-21 dic-20 Var% 4Q2021 4Q2020 Var% 44.4% 43.7% 43.5% Suramer
Slide 32: Net income closed the year in positive territory
Net income closed the year in positive territory Explained by the growth in premiums and the control of expenses that mitigates the higher claims rate WRITTEN PREMIUMS RETAINED CLAIMS % Retained earned premiums dic-21 dic-20 Var% 6.4 Written premiums 21,789 18,707 16.5% 5.7 68% 71% 71% 70% 71% Retai
Slide 33: Life segment continues to show a less degree of claims
Life segment continues to show a less degree of claims In addition to double-digit growth in written premiums GROWTH OF COP 211 BN IN WRITTEN PREMIUMS WORKERS’ COMPENSATION PREMIUMS INCREASED COP 62 BN 1.5 1.7 1.7 90% 474 500 1.5 1.4 Var 4Q21: 80% 71.8% 450 64.9% +13.9% 400 70% 72% 60% 350 67% 68% 5
Slide 34: Growth path continue in premiums for Property and Casualty Segment
Growth path continue in premiums for Property and Casualty Segment Which contrasts to the claims frequency rates returning to normal in the mobility solutions compared to the previous year HIGHER GROWTH IN WRITTEN PREMIUMS CONTROL OF EXPENSES AS A PERCENTAGE OF REVENUES 3.2 26% 24% 24% 2.3 23% 23% 2
Slide 35: YTD Sustained Growth for Health Care segment
YTD Sustained Growth for Health Care segment Despite the increase in claims ratio mitigated by the lower amount of severity GROWTH OF COP 233 BN IN WRITTEN PREMIUMS CLAIMS RATIO 94.0% 92.1% 90.8% 88.8% 88.3% 2.1 1.9 1.8 1.5 1.7 4Q20 1Q21 2Q21 3Q21 4Q21 4Q20 1Q21 2Q21 3Q21 4Q21 Claims ratio Written p
Slide 36: Double-digit increase in operating revenues as of December
Double-digit increase in operating revenues as of December Supported in the growth in commission income and good levels of performance obtained with seed capital investments COMMISSION INCOME OPERATING EARNINGS OPERATING EARNINGS EXC. ENCAJE* * 664 684 687 637 621 383 dic-21 dic-20 Var$ Var% 291 312
Slide 37: Retirement Savings segment continues with a good performance
Retirement Savings segment continues with a good performance Driven by the positive evolution in commission income followed by an increase of the salary base and AUM in México ORGANICAL INCREASE IN AUM (COP TN) INCREASE OF COP 41 BN IN COMMISSION INCOME 562 578 583 542 527 480 480 489 Total: (+7.5%)
Slide 38: Positive results of the Inversiones SURA + IM lines of business
Positive results of the Inversiones SURA + IM lines of business With revenues and AUM growth GROWTH OF COP 10 BN IN AUM ANNUAL NET FLOW CLOSED IN COP 2.4 TN 76.9 1.9 72.3 70.9 71.4 1.5 66.9 1.2 0.6 (1.2) 4Q20 1Q21 2Q21 3Q21 4Q21 4Q20 1Q21 2Q21 3Q21 4Q21 Net Flow (COP tn) AUM (COP tn) COMISSIONS INCO
Slide 39: Guidance
GUIDANCE
Slide 40: Suramericana: Forecast
Suramericana: Forecast Expectations of double-digit growth continue with an improvement in profitability given a normalization of claims 2022 3 years (2024) Written Premiums 11%-13% Written Premiums CAGR 2021-2024: 10% - 12% Adjusted ROE 11% - 12% Claims ratio 70% - 71% ROTE 16% - 17% Admin. Expense
Slide 41: SURA Asset Management: Forecast
SURA Asset Management: Forecast Fee income impacted in 2022 by the decrease in fees in Mexico that are partially offset by efficiencies 2022 3 years (2024) Commission CAGR 2021-2024: AUM 10-12% income* 4%- 6% Adjusted ROE 7% - 8% Commission (2%) - (5%) income* ROTE 22% - 23% Operating Margin* 40%-42
Slide 42: Grupo SURA: Forecast
Grupo SURA: Forecast Grupo SURA is the sum of parts, which reflects a focus on profitability added to deleveraging efforts 2022 3 years (2024) Debt / Received < 2.5x Net Income 10-15% Dividends Debt / Received 3.7x – 4.3x Adjusted ROE 11% - 12% Dividends Adjusted ROE 8% - 9% Consolidated metrics. 41
Slide 43: Investor relations contacts
Investors and Capital Markets Managing Director Investors and Capital Markets Managing Specialist CARLOS EDUARDO GONZALEZ MARIA ALEJANDRA DUQUE cegonzalezt@gruposura.com.co maduque@gruposura.com.co Investors and Capital Markets Director Investors and Capital Markets Managing Analyst DANIEL MESA JULI
Grupo de Inversiones Suramericana S.A. (Grupo SURA) — Q4 2021 Earnings Presentation on 6ix