Grupo de Inversiones Suramericana (GRUPOSURA) Q1 2023 earnings summary

Executive summary

• Revenue reached COP 9,569bn, up 38.5% YoY; controlling net income rose 94.3% to a quarterly-record COP 834bn.

• Results benefited from currency depreciation, AFP Protección consolidation and investment recovery; comparability was affected by exchange-rate movements and consolidation.

Financial highlights

• Investment income recovered to COP 1.28tn from a COP 11bn loss in Q1 2022, supported by inflation-linked assets, higher rates and stronger market returns.

• Written premiums rose 30.3% to COP 7.50tn; commission income grew 62.7% to COP 1.26tn, and equity-method revenue increased 5.9% to COP 575bn.

• Consolidated operating income increased 79.9% to COP 1.39tn; net income reached COP 984bn, up 122.8%.

• Assets totaled COP 99.4tn, up 32.2% YoY; liabilities were COP 63.0tn, up 37.1%, and parent shareholders’ equity reached COP 34.1tn, up 20.0%.

Outlook and guidance

• 2023 estimated adjusted ROE was 9.9%; the estimate could change with preliminary results from associates.

• Net debt was expected to remain below 3x during 2023; net debt to LTM received dividends was 2.5x.

• 2023 estimated dividends and other receipts were COP 1,670bn; received dividends increased 48% YoY.