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Sura 3Q 2022 Net Income Dips 2% Year-on-Year

Published in Companies Written by  November 12 2022 font size decrease font size increase font size 0
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Medellin-based multinational insurance, asset management and health-care giant Grupo Sura announced November 11 that its third quarter (3Q) 2022 net income dipped 2% year-on-year, to COP$400 billion (US$83 million).

Total revenues nevertheless rose 19% year-on-year, to COP$7.9 trillion (US$1.6 billion).

Despite the 3Q dip in profits, through nine months 2022, Sura’s net income is up 34.6% year-on-year, to COP$1.4 trillion (US$291 million), according to the company.

“Revenues continue on an uptrend thanks to a double-digit growth with the insurance business, where written premiums rose by COP$1.1 trillion [US$229 million], that is to say 19.1% more compared to the same quarter last year,” according to Sura.

“On the other hand, fee and commission income amounted to COP$838 billion [US$174 million], remaining at similar levels to the third quarter last year.

“So far this year [nine-months 2022], total revenues have risen by COP$4.1 trillion [US$853 million], now standing at COP$22.3 trillion [US$4.6 billion], with written premiums scoring a growth of COP$3.7 trillion [US$769 million], thanks to good levels of performance in all segments,” according to Sura.

However, “while [nine-months] fee and commission income has declined by COP$15.4 billion [US$3.2 million] compared to the year-to-date figure corresponding to the same period last year, this is due to regulatory reductions in the amounts charged in Mexico as well as lower levels of performance for the voluntary savings segment due to losses in value on the financial markets,” the company added.

“During this period, the Suramericana [insurance division] portfolio continued to show higher yields thanks to higher interest rates and higher inflation throughout the region, hence the positive performance posted for the portfolios held in Chile, Colombia, Uruguay and the Dominican Republic.

“On the other hand, returns from [investment fund] Sura Asset Management’s legal reserves continued to be affected by the losses in value sustained on different financial markets throughout the region. Investments, on a year-to-date basis, came to COP$1.2 trillion [US$249 million], for a drop of COP$22.3 billion [US$4.6 million] compared to the same period last year,” the company added.

During 3Q 2022, the insurance claims rate “continued to be impacted by increases in average costs and higher claims frequencies with the auto insurance unit, as well the required update in reserves for the life insurance segment in the light of expectations of the increase in minimum wage in Colombia as well as a higher claims rate for the Mandatory Health Care subsidiary (EPS) due to a recent update to the PBS (Basic Health Plan) as well as increased frequencies with the amount of health services rendered,” according to Sura.

In its health-care segment, “the increase in the net loss posted was due to higher claims on the part of the EPS (mandatory health care) subsidiary as well as lower revenues posted by the Ayudas Diagnosticas Sura (Diagnostic Service Provider) subsidiary, which last year were driven up by a higher volume of Covid-related services,” which have since dropped dramatically as the Covid crisis has now subsided.

Read 139 times Last modified on Last modified on November 12 2022

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