GRUPOSURA Continues to Post a Good Performance with Profits Totaling COP 434,897 Million for Q2 2010

MEDELLIN, Colombia, Aug. 2 /PRNewswire-FirstCall/ -- Grupo de Inversiones Suramericana (OTCBB: GIVSY; BVC: GRUPOSURA) has continued to show the same positive trend as the beginning of the year with YTD profits totaling COP 434,897 million for H1 2010. These results were mainly due to the good level of performance obtained by our subsidiaries who, through the equity method, represented COP 371,261 million of this figure.  

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Furthermore, dividends and interest received came to COP 72,714 million. Earnings from the sale of investments showed a significant increase due to having sold off the stake previously held in Almacenes Exito for a total of COP 32,574 million, as reported for Q1.

Sustained growth for assets and shareholders' equity

At June 30, the Company's assets totaled COP 15.96 billion, with an increase of 8.6% compared to the year-end figure for 2009, mainly due to the increase in listed stock prices and to the higher intrinsic values of non-listed shares.

Current assets came to COP 867,382 million for an increase of 314.6% for H1 2010; these included negotiable investments totaling COP 609,045 million and dividends receivable for another COP 94,907 million, which represent important additional funds from here to the end of the year.

On the other hand, total liabilities came to COP 1.23 billion, showing an increase of 243.7%, this mainly due to an issue of commercial paper for COP 233,652 million and the debt incurred with the subsidiary Portafolio de Inversiones Suramericana, "Subject to Liquidation" in the amount of COP 360,763 million for a total debt ratio of 7.7%. Shareholders' Equity came to COP 14.74 billion with GRUPOSURA's intrinsic share price closing at COP 31,418.52.

A sound financial position

As you may recall, as a result of its last annual revision of Grupo de Inversiones Suramericana's 2009 Issue of Commercial Paper, performed in June of this year, the Technical Committee of Fitch Ratings Colombia S.A., upheld its F1+ (Col) rating thereby confirming the Group's sound financial position and the good level of performance shown so far this year.

This rating was based on various factors such as the Group's consistent and successful corporate strategy, low leverage ratio, high levels of coverage, as well as ample and diversified sources of liquidity.

To conclude, at a recent meeting held by the holders of ordinary bonds issued by Portafolio de Inversiones Suramericana – "Subject to Liquidation" held in July, the projected partial spin-off of this Company was duly approved. It shall, therefore, be partially spun-off without being liquidated and the corresponding portion of its equity shall be seceded to the beneficiary party, Grupo de Inversiones Suramericana S.A.

Having ended this first half of the year with a gratifying level of performance, GRUPOSURA maintains an optimistic outlook from here to the end of the year, given the positive forecasts for the country's main economic indicators as well as the interest Colombia is attracting on the international markets.

ABOUT GRUPO DE INVERSIONES SURAMERICANA

Grupo de Inversiones Suramericana is a holding company listed on the Colombian stock exchange as well as with the ADR- Level 1 program in the United States. Its portfolio of investments is divided into two main segments: the first is Strategic Investments, comprised of the financial services, insurance and social security sectors as well as complementary services. The second is Portfolio Investments, mainly comprising of the Group's investments in the food and cement sectors.

The Group is mainly focused on its Strategic Investment segment, playing an active role in the management functions of all its companies with a view to harnessing common synergies, as well as taking full advantage of creating, growing and extending its business

SOURCE Grupo de Inversiones Suramericana