September 26, 2023

Grupo Sura 2Q 2022 Net Income Jumps 30.7% Year-on Year

Medellin-based multinational insurance, health care and asset-management group Grupo Sura announced August 12 that its second quarter (2Q) 2022 net income rose 30.7% year-on-year, to COP$603 billion (US$145 million) – its best quarterly performance in seven years.

Total revenues likewise rose 23%, to COP$7.5 trillion (US$1.8 billion), an all-time quarterly record, according to the company.

“This growth in revenues was mainly due to a positive level of performance with the insurance business, which produced a growth in written premiums of COP$1.6 trillion [US$384 million], offset by a drop in fee and commission income, corresponding mainly to the mandatory pension business in Mexico, which fell by COP$38 billion [US$9.1 million], a decline of 4.7% compared to the same quarter last year,” according to Sura

“Investment income increased by COP$340.7 billion [US$81.8 million] compared to the second quarter last year, representing a growth of 84.5%. These results are largely accounted for by the positive levels of performance recorded by the Suramericana portfolios, where inflationary pressures and rising interest rates throughout the region continue to produce higher yields in the Chilean, Colombian and Brazilian portfolios,” the company added.

However, revenues from Sura AM’s legal reserves “continued to be affected by the losses in value sustained on different financial markets throughout the region,” the company added.

Revenues from Sura’s stock holdings in Bancolombia, Nutresa and Grupo Argos generated a 61% year-on-year gain in 2Q 2022, netting an extra COP$397 billion (US$95 million), according to the company.

Retained insurance claims rose 25% year-on-year, by COP$811 billion (US$195 million), according to the company.

“The claims rate continued to be affected by increased average costs corresponding to the [vehicle insurance claims] in the case of Suramericana as well as increases in the health care division due to a change in the mix, where the mandatory health care subsidiary (EPS) has a greater weighting, partially mitigated by a drop of COP$668 billion [US$160 million] in the claims relating to Covid compared to the second quarter last year,” according to the company.

While operating expenses rose 17.5% year-on-year, that was 5.5% lower than the increase in the company’s total revenues, according to Sura.

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