Medellin-Based Insurance Giant Grupo Sura Sees 2016 Profits Jump 26% Year-on-Year

Medellin-based insurance and finance giant Grupo Sura announced February 27 that its full-year 2016 net income grew 26.3% year-on-year, to COP$1.7 trillion (US$556.3 million).

Consolidated revenues also rose by 36.2%, to COP$19 trillion (US$6.3 billion), according to the company.

“These variations are driven by the strong dynamics of insurance premiums, which grew 43.8%, and investment income, which totaled COP$2.1 trillion (US$704 million), growing by 44.8%,” according to the company.

Grupo Sura’s consolidated assets at year-end 2016 year rose 22% year-on-year, to COP$67.8 trillion (US$22.6 billion), with shareholders equity essentially flat at COP$22.7 trillion (US$7.6 billion), “explained by the accounting effect of the acquisition of the additional stake in Sura Asset Management,” according to the company.

“Even in the midst of an environment marked by the regional slowdown and global uncertainty, 2016 was a positive year in the performance of our subsidiaries and in business in general, and we will continue to consolidate our consolidation strategy in Latin America in 2017,” added Grupo Sura president David Bojanini.

The Sura Asset Management subsidiary –specializing in the pension, savings and investment sectors — recorded total consolidated revenues of COP$5.9 trillion (US$1.95 billion), up 12.2% year-on-year, “which is important considering that the economies where this company has a presence grew [only] 2.0% on average,” according to the group.

This subsidiary also saw net profits jump 20.7% year-on-year, to COP$617 billion (US$205.7 million), growing 20.7%, reflecting improvements in return on investments that support the reserves.

Consolidated assets totaled COP$26.8 trillion (US$8.9 billion), up 8.3% year-on-year. Assets under management (AUM) for the “voluntary” segment increased by 20.2% year-on-year, to COP$28.5 trillion (US$ 9.4 billion), while the “mandatory” segment recorded a growth of 8.6%, to COP$299.9 trillion (US$99.9 billion).

Meanwhile, the “Suramericana” insurance and risk-management subsidiary saw operating income grow 67.9% year-on-year, thanks in large part to new acquisitions. Even leaving aside those acquisitions, 2016 operating revenues rose 16.4%.

“Likewise, current businesses maintained good business dynamics, reflecting a strengthening in [insurance] solutions including cars, life, health and occupational hazards. Thus, in 2016 total revenues reached COP$11.8 trillion (US$3.9 billion), for growth of 53.8%, while net income closed at COP$401 billion (US$131.6 million), growing by 17%, and assets grew by 72.8%, to COP$22.8 trillion (US$7.6 billion),” according to the company.

“Also noteworthy was the performance of Suramericana’s investment portfolios, which despite having a volatile year and high macroeconomic and political uncertainty, generated an annual increase in financial income of 82.7%,” according to the company.