Grupo Sura 1Q 2022 Net Income Jumps 109% Year-on-Year
Medellin-based multinational health, insurance and financial services giant Grupo Sura announced May 13 that its consolidated net income for first quarter (1Q) 2022 rose 109% year-on-year, to COP$442 billion (US$113 million),
Consolidated revenues likewise rose 25% year-on-year, to COP$6.9 trillion (US$1.76 billion), according to the company.
“This level of results was driven by revenues obtained from associated companies as well as double-digit growth on the part of [insurance subsidiary] Suramericana,” mainly in the life and health-care segments, according to Sura.
Grupo Sura also cited gains from its partial holdings in Medellin-based banking giant Bancolombia and its Medellin neighbor, foods giant Grupo Nutresa.
Operating expenses increased 22.3% for the latest quarter, “due to an increase with Suramericana’s claims rate, specifically in the car segment, given difficulties with the auto parts supply chains,” according to the company.
“On the other hand, this increase in expense was also due to our subsidiaries resuming their investments and projects, which had been temporarily suspended due to the pandemic,” the company added.
Grupo Sura’s varied-sector investment strategy “demonstrates, once again, the advantages of having a diversified, well- balanced investment portfolio as well as the benefits of our efficiency efforts,” added Sura Chief Finance Officer Ricardo Jaramillo.
The Suramericana division saw a 21.4% increase in written premiums during 1Q 2022, totaling COP$5.6 trillion (US$1.42 billion), “given the positive levels of performance obtained with the Life (16.7%), Health Care (27.2%) and Property-Casualty (15.8%) insurance segments,” while also enjoying an 89% jump in investment income, at COP$376 billion (US$96 million), according to the company.
While auto accident claims rose, “this increase was partially mitigated by the reduced impact of the pandemic across the region, as Covid claims declined by 60.5% compared to the same quarter last year and by 11.4% compared to 4Q 2021,” according to Sura. .
Meanwhile, the Sura Asset Management investment services division saw a 1.9% dip in fee and commission income, “due to issues such as the regulatory cap on commissions charged in Mexico along with losses in value on the global capital markets, which impacted the funds’ own investments (reserve requirements). This was compounded with the depreciation of Latin American currencies against the dollar, which produced a negative exchange difference,” according to Sura.