Sura Full-Year 2023 Adjusted Net Income Rises 7% Year-on-Year
Medellin-based multinational insurance, pensions and asset-management giant Grupo Sura announced February 29 a full-yet 2023 adjusted net controlling income of COP$2.3 trillion (US$583 million), up 11.7% year-on-year.
Operating revenues rose 22% year-on-year, to COP$35.5 trillion (US$9 billion), with operating profits up 25%, to a record COP$4.6 trillion (US$1.16 billion).
Sura’s “adjusted net controlling income” for 2023 included the impact of the Nutresa-Grupo Sura stock-swap deal last year, as well as effects of the sale of its Argentina and El Salvador operations, the company clarified.
“This [adjusted net income] figure excludes non-recurring accounting effects of COP$778 billion [US$197 million] associated with the Nutresa transaction and the divestitures of Suramericana operations in Argentina and El Salvador.
“At the accounting level [excluding Suramericana asset sales and the stock-swap deal], the controlling net income closed 2023 at COP$1.5 trillion [US$380 million]. This allowed us to continue on a growing path and achieve an adjusted return on equity (ROE) of 10.2%, the highest in the last six years,” the company added.
Sura credited the boost in 2023 revenues to “positive dynamics of [insurance] premiums, commissions and the better results of investments,” according to the company.
“Added to this is that expenses grew at a rate below income growth, which is why operating profit reached a record figure,” the company added.
As for the Sura Asset Management division, commissions grew 12% year-on-year, to COP$4.1 trillion (US$10.4 billion). “This, added to expense control, allowed the controlling net income to reach COP$902 billion [US$229 million], with a significant increase compared to the end of 2022,” according to the company.
In November 2023 Grupo Sura signed a contract to increase its participation in Sura Asset Management by up to 93.3%, through the acquisition of Grupo Bolívar’s participation, which corresponds to 9.74% of the company.
As for the Suramericana insurance division, this group saw a 14% year-on-year boost in total issued premiums, now totaling COP$28.5 trillion (US$7.2 billion), “of which 58% corresponds to voluntary insurance,” according to the company.
As a result, Suramericana’s controlling net profit grew 4.5% year-on-year, to COP$511 billion (US$129 million), “despite losses at EPS Sura [health insurance group] that amounted to COP$223 billion [US$56 million] as of December 2023.”
Excluding the impacts of divesting its Argentina and El Salvador insurance operations, Suramanericana’s net profit would have grown 29%, to COP$631 billion (US$160 million), the company added.
