Grupo Sura First-Half 2017 Net Profits Dip 34.6% on Peso Devaluation

Medellin-based multinational insurance, pensions and investment giant Grupo Sura announced August 15 that its first-half (1H) 2017 net income dipped 34.6% year-on-year mainly because of Colombian peso devaluation against the U.S. dollar.

However, revenues rose 22.4% year-on-year to COP$9.9 trillion (US$3.3 billion), while investment income jumped 61.5%, to COP$1.1 trillion (US$372 million), according to the company.

“These results reflect the dynamic operation of our affiliates Sura Asset Management – specialized in pensions, savings and investments – and Suramericana, in the sector of insurance and risk-management,” according to Sura.

Its affiliation with associates Bancolombia and pension specialist Proteccion delivered US$169 million in revenues, according to the company.

Expenses rose 29.7% year-on-year, to US$3 billion, mainly due to the acquisition of insuror RSA.

Leaving aside the impact of peso devaluation and certain non-recurring charge provisions, net income would have grown 11.4% year-on-year, according to the company.

Assets grew 4.9% year-on-year, to COP$71.2 trillion (US$23.3 billion), while shareholder equity grew 0.9% year-on-year, to US$7.5 billion, according to the company.

The Suramericana insurance subsidiary saw premium income rise 47.2%, to US$1.8 billion, sparked by the acquisition of RSA last year.

Meanwhile, the Sura Asset Management subsidiary saw its assets under management grow 14.4%, to US$126 billion.

Operating income from its pension administration group rose 11.7%, to US$383 million, with the voluntary pension segment growing 28% year-on-year, according to the company.