MEDELLIN, Colombia, March 29, 2012 /PRNewswire/ -- 2011 was a transforming year for Grupo de Inversiones Suramericana - GRUPO SURA, in that it achieved historic results, especially in terms of the strengthening of its portfolio and international presence, making it a Multi-Latin organization with strategic investments in eight countries, thus assuming a position of regional leadership.
This was introduced today by the President and the Board of Directors of the Company, as part of the Annual Meeting of Shareholders 2012, which also confirmed that the main objective this year is to consolidate the acquired operations, which in the first months of the year have shown a very positive behavior according to projections. In this sense, SURA Asset Management, the subholding which handles assets acquired from ING, reported a beginning of the year exceeding expectations, in addition to advancing brand positioning in the region and expanding the range of products in the markets where the organization operates today.
The inclusion of SURA in the group of the 342 companies that comprise the Dow Jones sustainability index, positions it as one of the leading organizations for its economic, environmental, and social management. Additionally, the entrance to the Index FTSE Latibex Top, which includes the 15 most liquid securities listed on that market; as well as the successful issue of international bonds and preferred shares without voting rights, are other important achievements obtained by the Company the previous year.
But without a doubt, the most important achievement in the transformation was related to the realization of plans for growth and expansion through the purchase of assets, directly and through subsidiaries in several countries of the continent. Undoubtedly, the most significant acquisition because of the size of the business and its leadership position in the market, was that of the Dutch group ING, in the amount of USD 3.614 million, for its pension assets, insurance and investment funds in Mexico, Peru, Chile, Uruguay and Colombia.
This transaction was announced on July 25 and was formalized on December 29, 2011, and achieved the participation as co-investors companies that significantly support operations in an important way, both with capital as well as knowledge and experience: the Bolivar Group, the World Bank's International Finance Corporation - IFC, the investment fund General Atlantic, and Bancolombia Group.
As stated in the Report to Shareholders, in 2011 the affiliates in the business of insurance, pension insurance, and investment funds, which are under the management of the new subholding SURA Asset Management, obtained a total income of USD 598.2 million. The managed assets soared to USD 65.3 billion and the total participants to 11.2 million people.
Other major acquisitions that took place in 2011 through the subsidiaries and companies in the portfolio of GRUPO SURA, were the purchases of AFP Crecer carried out by Protection S.A., with a value of USD 103 million. AFP Crecer is the largest pension fund in El Salvador in both profitability and number of participants, with a market share of 53.2 %.
Likewise, Suramericana S.A. acquired for USD 23.5 million Proseguros - Progreso Compania de Seguros, an insurance company with headquarters in the Dominican Republic, with a market share of around 11%. Suramericana S.A. also advanced in the purchasing process of Aseguradora Suiza Salvadorena – Asesuisa, the leader of the insurance market in El Salvador, with a participation of 19 %. The value of this transaction is USD 98 million. The regulatory process is still in progress in this Central American country.
Suramericana has notably achieved a strong financial performance by increasing their equity by 14.9 % and maintaining the highest credit and risk ratings. The Company continues with leadership positions in Colombia, strengthening its commitment to employment generation, economic development, and the development of markets.
Similarly, in the sector of the BPO/ITO - Business Process Outsourcing / Information Technology Outsourcing –valued at USD 20 million, Enlace Operativo S. A. completed the acquisition of the Colombian corporation Compuredes, which is dedicated to outsourcing technological solutions. This further strengthens the Company's portfolio and keeps it active in an important growth dynamic.
In presenting the results of the Company, the President, David Bojanini, expressed his satisfaction with the previous year's achievements and the outlook presented in the business today: "2011 was an excellent year for GRUPO SURA. I would encapsulate this in the words TRANSFORMATION and SOUNDNESS, and the facts that support this are the internationalization, regional leadership and the strengthening of the portfolio. We have an increasingly solid portfolio and a very consistent strategy that continues to deliver highly positive results". He also said that "in general, our outlook is very positive, not only because the companies that make up our portfolio have demonstrated their strength, but because the conditions which are offered today in the Latin American environment are very attractive for the sectors in which we invest, in particular pension, insurance, savings, and investment".
2011 Financial Results
According to the report submitted to the Assembly today, the Company closed with the following figures in 2011:
- Assets totaled USD 11.1 billion, increasing of 18.8 % compared to December 2010, primarily as a result of the acquisition of the ING's operations in Latin America.
- Operating Revenues reached USD 237.8 million.
- The net income climbed to USD 171.3 million.
The Company stated that the financial statements are not comparable to those in the year 2010, due to factors such as the liquidation and subsequent merger with GRUPO SURA of Portafolio de Inversiones Suramericana. Additionally, in 2010 SURAMERICANA had an extraordinary net income product of the reclassification and sale of part of the investment portfolio of its subsidiaries, Seguros Generales Suramericana and Seguros de Vida Suramericana. Also, in the first quarter of 2010 there was non-recurring income generated from the sale of the minority stake that GRUPO SURA had in Grupo Exito and Fabricato.
ABOUT GRUPO DE INVERSIONES SURAMERICANA
Grupo de Inversiones Suramericana –GRUPO SURA- is a Latin American Company listed on the Colombian Stock Market (BVC) and registered with the Level I ADR program in the United States and with Latibex, the market for Latin American securities on the Madrid stock market. It is also one of the three Latin American financial institutions that form part of the Dow Jones Sustainability Index recognizing companies around the world that are noted for their good financial, environmental, and social practices. GRUPO SURA has two types of investments: strategic investments focusing on the financial services, insurance, pension, social security, and supplementary services sector; and portfolio investments in the processed food, cement, and energy sectors.
GRUPO SURA is now the number one pension organization in Latin America and one of the most important in the insurance, savings, and investment sectors.
Luis Eduardo Martinez
Investor Relations Director
Monica Guarin Montoya
SOURCE Grupo de Inversiones Suramericana