Grupo SURA posted increases of 18.9% in revenues and 7.6% in assets at year-end 2015
Grupo SURA obtained COP 13.9 billion (USD 4.4 billion) in consolidated revenues at year-end 2015 for a year-on-year growth of 18.9%. The Board of Directors gave its approval to presenting the Shareholders at their upcoming Annual Meeting with a proposal for setting this year´s dividend payment at COP 456 per ordinary and preferred share (+8% versus last year). Grupo SURA´s consolidated assets came to COP 55.5 billion (USD 17.6 billion), showing an increase of 17.6% compared to year-end 2014. Grupo de Inversiones Suramericana - Grupo SURA - presented its financial results at the end of Q4 2015, highlighting the operating performance of its different lines of business and the continuation of its regional expansion, with its insurance and trend/risk management subsidiary, Suramericana S.A. acquiring RSA's Latin American operations. It was precisely thanks to the good level of operating performance at subsidiary level that the Group managed to increase its consolidated revenues to COP 13.9 billion (USD 4.4 billion) at year-end 2015. This included a growth in retained premiums, commission income and revenues on services rendered. Throughout 2015, the Group´s financial results were affected by various factors including the amount of wealth tax payable totaling COP 101,078 million (USD 32.1 million), as well as a higher exchange rate and the volatility prevailing on the financial markets. In the light of the above the Group´s bottom line came to COP 1.3 billion (USD 420.4 million), for a decline of 18.8% compared to the previous year. As a result, the Board of Directors of Grupo SURA approved a proposal to be submitted for the consideration of the Shareholders at their upcoming Ordinary Annual Meeting consisting of a dividend payment to be paid on both ordinary and preferred shares of COP 456, this year, this representing an increase of 8% compared to the dividends paid out last year. Grupo SURA's consolidated assets came to COP 55.5 billion (USD 17.6 billion), showing an increase of 17.6%, while total equity came to COP 22.8 billion (USD 7.3 billion), for a growth of 5.2%. Extending the Group´s investment portfolio One of the highlights of Q4 was the announcement that Grupo SURA was to acquire the shares held by JP Morgan in SURA Asset Management, for a total of USD 227 million, this representing a 4.3% stake in this subsidiary´s share capital. This was followed by another announcement namely that the Company was to acquire the shares held by General Atlantic also in SURA Asset Management, extending its total stake in this subsidiary to 78.7%. These newly acquired stakes went hand in hand with the Group´s acquisition of RSA's Latin American operations, all of which was mentioned by the credit ratings agency Fitch Ratings in its report after upgrading Grupo SURA's international investment rating from BBB- to BBB for which it gave a stable outlook. According to Fitch "these ratings have been driven by Grupo SURA track record in carrying out its investments. The aforementioned transactions are consistent with the Company's growth strategy which includes M&A´s as a key driver of such Fitch believes that these acquisitions have had a positive effect on Grupo SURA from a strategic point of view, as it continues to expand its insurance business to other countries in Latin America where the company is already present with other lines of business." Subsidiary performance SURA Asset Management posted COP 5.2 billion (USD 1.7 million) in year-end consolidated revenues for a growth of 33.9%, this mainly due to higher premiums and commission income. Net income at year-end 2015 came to COP 502,572 million (USD 159.6 million) which was 22.7% higher compared to the previous year. This was mainly due to the positive effect that translation differences had upon converting local currencies to Colombian pesos. Assets under Management (AUM), on the part of the SURA Asset Management's subsidiaries, came to COP 324.8 billion (USD 103.1 billion), for a growth of 7.9% based on constant exchange rates. These assets belong to 17.3 million clients in 6 different Latin American countries. In this way, SURA Asset Management has effectively established itself as the top non-banking asset management firm in the region, as well as a leading player on the regional pension fund management industry with a 22.8% of the total market. Consolidated revenues obtained by Suramericana S.A, Grupo SURA's insurance and trend/risk management subsidiary, came to COP 7.7 billion (USD 2,4 billion) at year-end 2015 showing a year-on-year growth of 16.0% Assets came to COP 13.2 billion (USD 4.2 billion), for a growth of 18.8% compared to year-end 2014, whereas the amount of equity attributable to the shareholders reached COP 2.7 billion (USD 845.1 million). In Colombia, the Suramericana insurance subsidiaries ended the year with a 23.8% share of the local insurance market, thus remaining in No. 1 position. 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 Index, 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.
Quarterly results call
Tuesday, Aug 17 at 8:30 a.m. (Colombia local time)See more