Sura 3Q 2023 Net Income Falls 20.6% Year-on-Year

Medellin-based multinational insurance, health-care and asset-management giant Grupo Sura announced November 14 that its third quarter (3Q) 2023 net income fell 20.6% year-on-year, to COP$328 billion (US$81 million).

Despite the profits dip, 3Q 2023 gross revenues actually rose 17% year-on-year, to COP$8.4 trillion (US$2.08 billion).

For nine months (January through September) 2023, net income dipped 2.5% year-on-year, to COP$1.42 trillion (US$352 million), despite a 27% jump in gross revenues that hit COP$26.5 trillion (US$6.57 billion), according to the company.

Profits came from the Suramericana insurance division and from Sura Asset Management, “which is reflected in an accumulated [nine months] operating profit as of September that increased 45% and reached COP$3.4 trillion (US$843 million),” according to the company.

“These results are explained by the growth of Suramericana’s premiums in its insurance segments — even with the higher claims rate in the health segment in Colombia — as well as the increase in income from Sura Asset Management, particularly from commissions in savings and retirement, accumulated returns from reserve requirements and efficiencies in operating expenses,” the company added.

Grupo Sura’s consolidated controlling net profit of COP$1.9 trillion (US$471 million) for nine-months 2023 included a deferred tax from the formerly part-owned Nutresa corporate operation “and the exclusion of this investment from equity method income, as well as the disinvestment of Suramericana in Argentina and El Salvador,” according to the company.

Consolidated results of Grupo Sura for nine-months 2023 “reflect the income from the equity method in associated companies of the portfolio, which totaled COP$1.5 trillion (US$371.7 million), mainly from Bancolombia and Grupo Argos, taking into account that for the third quarter 2023, Grupo Nutresa accounts” were included, the company noted.

The Sura Asset Management division so far this year has generated total gross commission income of COP$3.1 trillion (US$768 million), “which in comparable terms represented a proforma growth of 17% compared to the same period in 2022,” according to Sura.

Sura Asset Management controlling net income soared by 343% year-on-year, to COP$645 billion (US$160 million), “driven by a growth in commission income that was higher than expenses, an increase in assets under management (AUM) and the accumulated returns from our investments of pension funds,” according to the company.

As for the Suramericana insurance division, “written premiums increased 18% as of September and reached COP$20.8 trillion [US$5.1 billion], due to the growth of all insurance segments,” according to Sura.

“The results reflect the effect of a higher accident rate (73.4% as of September) and — despite the improvement of this indicator in the Life and General segments — an increase in accident frequency and severity in EPS SURA [the health-care segment],” according to the company.

For the insurance division, accumulated net profit for the third quarter grew 71%, to COP$433 billion (US$107 million), “due to the better performance in Life and General, in contrast to accumulated losses in Health, explained by the EPS,” according to Sura.

“If the effect of the recent divestment [of insurance operations] in Argentina and El Salvador is excluded, then this final result amounts to COP$537 billion (US$133 million), 112% more compared to September 2022,” the company added.