Grupo SURA hereby announces that its Board of Directors, gave their approval to extending the Group´s accounting policies to cover hyperinflationary economies, so as to be able to implement IAS 29 - Financial Reporting in Hyperinflationary Economies, given the latest changes with the Argentinian economy which has now been declared hyperinflationary.

This latest adjustment shall affect Grupo SURA’s financial statements as of October 2018, insofar as all those non-monetary items therein reported by the Company shall be duly updated.

The Board of Directors also gave their approval to changing the Group´s lease accounting policy, for the purpose of deploying the new lease accounting standard, IFRS 16, as promulgated by the International Accounting Standards Board (IASB) and subsequently adopted in Colombia by means of Decree 2496 of 2015, which was later amended by Decree 2131 of 2016.

This new change to the Group´s accounting policies shall enter into full force and effect as of January 1, 2019 and shall affect the leased asset and leasing liabilities accounts.