Sura 3Q 2024 Profits Grow 17.8% Year-on-Year
Medellin-based multinational insurance and asset-management giant Grupo Sura announced November 14 that its third quarter (3Q) 2024 net income rose 17.8% year-on-year, to COP$534 billion (US$120 million), from COP$453 billion (US$102 million) in 3Q 2023.
For nine-months 2024, Grupo Sura consolidated profits soared by 335%, to COP$5.7 trillion (US$1.28 billion) — but that included a huge, one-time gain from the sale earlier this year of its partial shareholdings in multinational foods manufacturer Nutresa.
Excluding the Nutresa share-sales gain, Sura’s nine-months 2024 net profit still came in at a healthy COP$2 trillion (US$451 million), according to the company.
“Nine-months 2024 revenues grew 29.2% to COP$26 trillion [US$5.8 billion], due to increased premiums from [insurance group] Suramericana, higher commission income and returns on investments in Sura Asset Management, as well as the contribution from the associated companies in the portfolio,” according to Sura.
“Grupo Sura’s adjusted return on equity rose to 12.2% for the last 12 months, reflecting [favorable] levels of return on equity achieved by Suramericana (12.5%), Sura Asset Management (11.3%) and Bancolombia (15.7%),” the company added.
“This result is explained by the growth in operating income, efforts in expense control and efficiencies in the businesses of the subsidiaries, as well as the increase in the equity method in the associated companies of the portfolio.
“In this context, Grupo SuraA is moving forward in structuring the transaction to avoid cross-shareholdings with [Medellin-based] Grupo Argos, in line with the memorandum of understanding signed between both companies at the end of last October.
“This process will result in the focus of Grupo Sura’s portfolio on three main investments: Suramericana in insurance, Sura Asset Management in pension savings and investments, and Bancolombia, in financial products,” the company added.
Adjusted profits per share of the company hit all time highs this year, up 61%,“explained by the expansion of margins of the portfolio businesses, as well as by the increase resulting from the reduction of shares in circulation, after the Nutresa-Grupo Sura [shareholdings] exchange and the liquidation of the portfolio company,” according to Sura
As for its subsidiary results, Sura Asset Management posted a nine-months 2024 controlling net profit of COP$881 billion (US$198 million), up 71.6% compared to the same period in 2023.
“This is the result of double-digit growth in commission income, with an operating margin of 34.2%, as well as higher returns on reserves in its savings and retirement segment,” according to Sura.
As for Suramericana, this insurance giant posted a nine-months 2024 net profit of COP$522 billion (US$118 million), up 41.1% compared to nine-months 2023.
The Suramerican profits jup came from “growth in premiums in the life-insurance segment, even despite the decrease in investment income in a context of lower inflation rates in the región,” according to Sura.
“Likewise, the accumulated retained claims ratio [at Suramericana] remains stable, at 59.4%,” the company added.
