Gruposura Posted Profits Totaling COP 594,825 Million for Q3 2010

USA - English

• Latin America - español

MEDELLIN, Colombia, Nov. 2, 2010 /PRNewswire-FirstCall/ -- Grupo de Inversiones Suramericana (OTCBB: GIVSY; BVC: GRUPOSURA) has continued to maintain the same positive trend as it has done since the beginning of the year, posting YTD net profits of COP 594,825 million at the end of Q3, showing a 99.3% increase compared to the COP 298,494 million obtained for the same period last year.

This was due to a good level of operating revenues, totaling COP 649,449 million, particularly subsidiary revenues obtained via the equity method. The amounts received from Suramericana S.A., Portafolio de Inversiones Suramericana S.A. "Subject to Liquidation", Inversiones y Construcciones Estrategicas S.A., Grupo de Inversiones Suramericana Panama S.A. and  Enlace Operativo S.A, reached COP 499,793 million showing a 122.5% increase compared to the same period last year.

Another important item that bolstered the Group's revenues were dividends and interest income, totaling COP 111,683 million, bolstered by returns obtained from investments.

Robust growth in assets and shareholders' equity

One of the main strengths of Grupo de Inversiones Suramericana has doubtlessly been the robust growth obtained with its assets and shareholders' equity, with the former rising by 19.9% to COP 17.61 billion, compared to year-end 2009.

Here current assets totaled COP 992,076 million, of which COP 721,352 million corresponded to negotiable investments, thereby extending cash flow in the amount of COP 690,912 million. Furthermore another COP 59,861 million was posted in dividends receivable.

It is worthwhile noting that appraisals of permanent investments reached COP 6.46 billion, showing a positive increase of 29.3% so far this year; this due mainly to higher prices of listed shares and higher intrinsic prices of non-listed shares.

GRUPOSURA's robust financial position was also reflected in its debt ratio which at the end of Q3 came to just 7.6%. Total liabilities came to COP 1.34 billion, the majority of these being short-term, including an issue of commercial paper for COP 233,652 million, repos for COP 55,916 million and short-term bank loans for COP 209,551 million. Gruposura also took over loans belonging to its subsidiary Portafolio de Inversiones Suramericana, which is currently being wound up, these amounting to COP 456,204 million.

Shareholders' equity came to COP 16.28 billion for Q3 showing a YTD increase of 13.5% and a intrinsic share price in pesos of COP 34,707.86

The GRUPOSURA share has been one of the highest gaining shares on the Colombian stock market throughout the year, with its stock price going from COP 24.540 at the beginning of the year to COP 38.360 at the end of Q3, for a YTD gain of 56.3%.

The Company has a shareholder base of 7.519 shareholders, including 132 international funds.

A good year for insurance

One of the main highlights so far this year has been the dynamics shown by the insurance industry, as can be seen from the results posted by our property and casualty insurance company, Seguros Generales Suramericana, where premiums have risen by 13.1% to COP 716,424 million, compared to the same period last year.

Here household insurance posted the most growth with premiums of COP 23,159 million, that is to say 19% more than for the same period last year. However, the line that most contributed to the Company's performance was car insurance which rose by 17.3% to COP 312,060 million. Performance bonds and fire insurance also increased significantly by 15% and 14.5%, respectively.

Claims rose by just 9.5% for a total of COP 309,319 million. All of this produced a growth of 26.1% in the Company's technical result which reached COP 111,492 million.

Seguros de Vida Suramericana (the Group's life insurance company) posted revenues of COP 926,577 million, showing a growth of 17.2% compared to the same period last year. Here it is worthwhile noting the 43.6% growth in premiums for life and voluntary annuities, totaling COP 108,535 million; whereas pension insurance rose by 14.9% to COP 138,712 million.

3Q CONFERENCE CALL

For further information you can participate in the Third Quarter Results Conference Call, which will be held on Wednesday, November 3rd – 8:00 a.m. (local time). The conference will be hosted by David Bojanini García, CEO of the Company.

The conference call

Dial-in instructions:

For USA and Canada (toll free): (866) 394-0738

For Colombia: 01 800 710 1835 - 01 800 710 1686

ID number: 20298558

Password: GRUPOSURA

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