A good level of business performance coupled with a positive exchange rate have helped produce a 30.8% increase in Grupo SURA´s revenues at the end of h1 2016
Consolidated revenues at the end of the first half of this year came to COP 8.5 billion (USD 2.9 billion), for a growth of 30.8%. The operations previously acquired from RSA, which we have gradually been incorporating in different months throughout the year, accounted for COP 603,000 million (USD 209.9 million) of this figure. As for the Company's net income, these reached COP 974,570 million (USD 333.9 million), showing a growth of 18.1% compared to the same period last year. Consolidated assets for H1 2016 reached COP 64.3 billion (USD 22.0 billion), showing a 15.8% growth compared to year-end 2015. Medellin August 26, 2016 - Today Grupo de Inversiones Suramericana - Grupo SURA - reported its results for the first half of this year, highlighting a superior level of operating performance, especially in terms of retained premiums, and the exchange difference which has had a positive effect on the Group´s overall financial results. The Company posted consolidated revenues amounting to COP 8.5 billion (USD 2.9 billion), for an increase of 30.8% with net income reaching COP 974.570 million (USD 333.9 million) on a YTD basis, having risen by 18.1%. It is worth noting that, out of the entire amount of revenues obtained, the business acquired from RSA provided COP 603 billion (USD 209.9 million), having been assimilated by Suramericana S.A. at different times this year. Other driving factors were insurance premiums showing a growth of 41.6% fee and commission income which rose by 15.5%, revenues from services rendered on the part of the health care companies netted another growth of 19.4% along with investment income which increased by 32.2%; all this enhanced by a positive exchange difference totaling COP 260.544 million (USD 89.3 million). As for expense, wealth tax was recorded in full during the first quarter of this year, just the same as it was last year, in the amount of COP 87.183 million (USD 29.9 million), while administrative expense totaled COP 1.6 billion (USD 534.8 million) for a year-on-year growth of 29.2%. The most significant expense was incurred by Suramericana as a result of integrating its recent acquisitions, namely Seguros Banistmo Panama and RSA Latin America. On the other hand, at the end of Q2 2016 Grupo SURA posted consolidated assets amounting to COP 64.3 billion (USD 22.0 billion) showing a YTD growth of 15.8%. Equity attributable to the shareholders of Grupo SURA stood at COP 22.2 billion (USD 7.6 billion), showing a drop of 3%, due to having acquired an additional stake in SURA Asset Management, as opportunely announced earlier on this year. In the light of these results, Grupo SURA's Chief Executive Officer, David Bojanini stated: "2016 has been a key year in being able to position ourselves as a Multi-Latina Group, providing an increasingly more comprehensive range of financial services and insurance solutions while extending our regional presence. It is a challenging situation that we face today in Latin America, given the prevailing macroeconomic factors and the sluggish performance of the local financial markets, but in spite of this we continue to obtain positive results Our priorities today are being able to consolidate our business on a regional level and enhance our organic growth. SUBSIDIARY PERFORMANCE Suramericana S.A., the Group´s specialized insurance and risk/trend management subsidiary, has performed well so far this year having posted revenues of COP 4.9 billion (USD 1.7 billion), representing a growth of 39% compared the same period last year. Net income came to COP 278,932 million (USD 95.6 million) for a year-on-year growth of 31.9%. The results for this first half of the year showed the consolidated contribution of the business acquired from RSA Latin America in Brazil, Chile, Argentina, Colombia and Mexico. Uruguay has yet to be included since it was only assimilated on the last day of June. As for SURA Asset Management, the Group´s specialized pension, saving and investment subsidiary, consolidated assets rose by 2.7% for a total of COP 25.4 billion (USD 8.7 billion). Operating income from its fund management business firms and voluntary pension funds came to COP 1.05 billion (USD 359.2 million), for a growth of 0.7% at constant exchange rates compared to the same period last year, together with a total insurance margin of COP 201.485 million (USD 69 million), for a growth of 6.6%. HIGHLIGHTS In addition to the above, in Q2 2016 Suramericana S.A. placed an issue of ordinary bonds for a total of COP 1 billion, having received bids worth COP 1.82 billion, that is to say 2.27 times the initial amount offered. The acquisition of RSA´s Latin American business was also completed last June on the part of Suramericana S.A., which in the case of Colombia gave rise to merging the newly acquired local operations with Seguros SURA. With this, Grupo SURA, through its two main subsidiaries, now has more than 33 million clients, 22 thousand employees and COP 337.5 billion (USD 115.6 billion) in assets under management in a total of 10 countries throughout Latin America. About Grupo SURA Grupo de Inversiones Suramericana, the parent company of the Sura Business Group is a Latin American company listed on the Colombian Stock Exchange and registered with the ADR- Level 1 program in the United States. We are also the only company from the Latin American Diversified Financial Service Sector to be admitted to the Dow Jones Sustainability World Indices, which lists companies who have become global benchmarks thanks to the best practices they have adopted from the economic, environmental and social standpoints. GRUPO SURA has two fields of investment: its core strategic interests in the financial service, insurance, pension, savings and investment sectors; and its industrial interests in the processed food, cement, energy and infrastructure sectors.