Sura 2Q 2024 Net Income Jumps 525% Year-on-Year
Medellin-based multinational insurance and financial manager Grupo Sura announced August 14 a 525% year-on-year jump in second quarter (2Q) net income, hitting COP$5.1 trillion (US$1.27 billion), from COP$851 billion (US$212 million) in 2Q 2023.
The huge jump is mainly explained by a one-time gain from the sale of its former stockholdings in Grupo Nutresa. If excluding that gain, then restated 2Q 2024 net income was COP$1.5 trillion (US$384 million) — still 13% better than the comparable 2Q 2023.
Excluding those revenues from the recent sale of Nutresa, Sura´s gross revenues in 2Q 2024 still rose 7% year-on-year, to COP$14.57 trillion (US$3.6 billion), the company explained.
Grupo Sura further added that it no longer includes its soon-to-be-extinct EPS Sura health insurance network in its financial statements.
EPS Sura has been piling-up huge losses over the past two years and has petitioned the Colombian government to exit the market (see Medellin Herald May 29, 2024).
“Grupo SURA’s adjusted return on equity stood at 11.1% while continuing to do well due to the performance of Suramericana [life, property and casualty insurance], SURA Asset Management and our associated portfolio companies,” the latter of which include shareholder profits in Bancolombia and Grupo Argos, the company explained.
“Operating income came to COP$22.5 trillion [US$5.6 billion] for a growth of 34.6%, or 14.3% at constant rates, excluding both EPS Sura and the effects associated with the Nutresa transaction,” according to Sura.
“This result was mainly driven by the growth in written premiums obtained by Suramericana’s life and property/casualty segments, as well as the amount of fee and commission income from SURA Asset Management’s savings and retirement (pensions) segment as well as its SURA Investments business (asset management for individuals and institutional clients).
“Consequently, Grupo Sura generated consolidated operating profit of COP$6.8 trillion [US$1.7 billion], for an increase of 25.7% in local currencies,” the company added.
“Our results for the first half of the year show the strength of our portfolio, which has become increasingly focused on the financial service sector as well as the efforts of our Sura companies in Latin America in continuing to increase their revenues, control expenses and improve operating margins,” added Sura CEO Ricardo Jaramillo Mejía.
The Sura Asset Management división posted a controlling net income of COP$418 billion [US$104 million], up 7.2% year-over-year. Fee and commission income rose 10.6% for the first half (1H) 2024 as measured in local currencies, and saw a 25% year-on-year boost at its Sura Investments business unit
“The regional diversification of our subsidiaries is contributing significantly to the growth and strength of our portfolio, as reflected in our consolidated results. In fact, during the first half of the year, 75% of SURA Asset Management’s fee and commission income and 38% of Suramericana’s written premiums originated from their different lines of business outside Colombia,” added Sura Chief Finance Officer Juan Esteban Toro.
