- This bottom line reflects growth across all of Suramericana’s segments as well as SURA Asset Management’s expense controls and the level of income generated via the equity method of associates included in Grupo SURA’s investment portfolio.
Revenue increased by 22% or COP 4.1 trillion over the first nine months of 2021.
Grupo SURA reported to the market its consolidated results for the most recent third quarter, in which operating income for September 2022 totaled COP 22.3 trillion (US$5,476 million*), an increase of 22% over the same period last year , which corresponds to the COP 4.1 trillion.
This was due to three factors: (i) the positive business development of all of Suramericana’s insurance segments; (ii) SURA Asset Management’s ability to maintain its fee and commission income given the volatility prevailing in capital markets; and (iii) a 59% increase in Grupo SURA’s equity method revenues from its associates, notably Bancolombia, Grupo Nutresa and Grupo Argos.
This level of revenue has come hand-in-hand with subsidiary-level operating expense control and greater efficiencies to offset rising claims ratios, particularly in the mandatory health and auto insurance solutions. As a result, operating profits increased by 24% as of September 2022 and controlling net income attributable to Grupo SURA was COP1.4 trillion (US$341 million), an increase of 35% compared to the same period last year.
“The positive results achieved in the third quarter reflect the confidence that both individuals and companies have placed in the products, solutions and services of the companies that make up our portfolio, as well as the efficiency efforts of Suramericana and SURA Asset Management. This is only confirmation the benefits of a well-diversified portfolio and allows us to advance our goal of sustainable profitability,” said Gonzalo Perez, CEO of Grupo SURA.
For its part, Suramericana booked premiums written of COP19.1 trillion (US$4,694 million), up 24% from the same period last year, thanks to growth in its life, health and property-casualty segments The claims ratio increased notably at our compulsory health care subsidiary, EPS SURA, due to the addition of more subscribers as well as the auto insurance solution. All of this ended with a recovery in our YTD net income of 240,252 million COP (59 million USD), which was also due to investment gains.
As for SURA Asset Management, its resilient fee and commission income totaled COP1.9 trillion ($465 million) at the end of the third quarter, down 4% from the same period last year Considering the impact of the volatility prevailing in the capital markets as well as the regulatory reduction of fees and commissions in Mexico. This impact was partially offset by cost controls and higher productivity levels, resulting in a YTD net income of COP 146,376 million (USD 36 million).
“Amidst increased volatility in capital markets, regionally higher inflation and rising interest rates, we see that the operational performance of our subsidiaries is reflected not only in the results presented, but also in their ability to manage their business footprint based on their capabilities and those associated with them operating models to optimize the efficiency achieved” said Ricardo Jaramillo, Chief Business Development and Finance Officer.
Assessment of sustainability performance
Grupo SURA was ranked in the top 1% of companies in the Miscellaneous Financial Services & Capital Markets sector according to S&P Global’s Corporate Sustainability Assessment (CSA), which reviewed the performance of 533 organizations.
The company maintained its leadership in areas such as financial inclusion, risk and crisis management, business ethics, attracting and retaining human talent, and corporate citizenship. This assessment also identified opportunities for improvement in the areas of diversity, seniority and experience of the company’s board of directors and its decarbonization strategy.