Grupo Sura 1Q 2024 Profits Jump 488% On One-Time Gains
Medellin-based insurance, health-care and asset-management multinational Grupo Sura announced May 15 that first quarter (1Q) 2024 net income soared 488% year-on-year, to COP$4.9 trillion (US$1.28 billion).
Total revenues likewise jumped 52.2% year-on-year, to COP$13.6 trillion (US$3.55 billion).
“This increase is mainly due to a 365.7% growth in revenue from investments, which reached COP$5.4 trillion [US$1.4 billion],” including huge profits from its former holdings in Grupo Argos and in Grupo Nutresa.
However, if Sura were to exclude those one-time gains, then 1Q 2024 net profits actually would have dipped 10% year-on-year, to COP$634.7 billion [US$166 million), as measured in constant exchange rates, according to the company.
Higher profits in 1Q 2024 also came from “an increase in reserve income in our Sura Asset Management subsidiary, reflecting positive behavior of the financial markets,” according to Grupo Sura.
“Likewise, insurance premiums issued hit COP$7.7 trillion [US$2 billion], a positive variation of 9.3%, mainly explained by an increase in Suramericana [insurance] premiums in the health and general segment, and in Sura Asset Management for the annuity premiums issued by Asulado,” the company added.
While trading-commission income dipped 6.9% year-on-year, “by excluding the effects of exchange rates, this item registers a positive variation of 8.9%, driven by an increase in assets managed in both segments of Sura Asset Management as well as a growth in the income base,” according to Sura.
“Isolating the effects of [income arising from holdings in] Grupo Argos and Nutresa, total revenues in 1Q 2024 would be COP$9.0 trillion [US$2.35 billion], presenting a positive variation in constant exchange rates of 7.2% derived from premium growth and commission income,” the company added.
Insurance claims during 1Q 2024 rose 6.4% year-on-year, “mainly explained by the higher accident rate in Suramericana’s life-insurance segment and in the ARL [worker’s-compensation health] segment due to higher accident rates, as well as higher frequencies in the voluntary health segment,” according to Sura.
“Growth in operating expenses was partially mitigated by the decrease in expenses for commissions to intermediaries mainly in the Suramericana,” the company added.
Meanwhile, operating profit more-than-tripled year-on-year, to COP$4.6 trillion (US$1.2 billion), “due to growth in income greater than that of expenses thanks to a higher result by our companies and portfolio management,” according to Sura.
Interest income grew by 21.7% year-on-year, to COP$323 billion (US$84 million), “mainly due to the financing associated with the acquisition of our additional participation in Sura Asset Management and the acquisition of new loans” that will extend liquidity at Grupo Nutresa, the company added.
