This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

GRUPO SURA Continued To Consolidate Its Growth In 2012 And Strengthen Its Position As A Multi-Latin Financial Holding Company

MEDELLIN, Colombia, March 21, 2013 /PRNewswire/ -- In 2012 GRUPO SURA (BVC: GRUPOSURA; LATIBEX: XGSUR; ADR: GIVSY, GIVPY) continued to consolidate its position as a multi-Latin financial holding company, securing a steady and sustainable growth. Its strength was also reflected in aspects such as the structuring of its portfolio, a gratifying level of performance on the part of its core investments, the expansion of both the Organization and its brand positioning on a regional level; its sound financial position and robust capital structure all of which contributed to the level of results recorded at year-end 2012.

(Logo: http://www2.prnewswire.com.br/imgs/pub/2012-03-09/original/607.jpg )

This was one of the main takeaways of its Annual Shareholders Meeting held today, at which other factors were highlighted such as how the Company's core investments are performing, having gone from 49% to 62% of its total portfolio in the space of just five years. These core investments pertain to the financial services, insurance, pension, savings and investment sectors in a total of 10 countries throughout Latin America, mainly through its subsidiaries SURA Asset Management, Suramericana and the Bancolombia Group which together manage assets totaling almost USD 138,000 million.

At the end of 2012, the Company recorded profits of COP 546,100 million ( USD 308.8 million), for a YoY increase of 64.1%, thanks to the superior performance of its subsidiaries, Suramericana and SURA Asset Management, the latter reporting to GRUPO SURA for the first time ever. GRUPO SURA's stake in these companies comes to 81.1% and 66.2% respectively. Consequently, the Company recorded, using the equity method, total revenues of COP 323,097 million ( USD 182.7 million) showing a YoY increase of 139.7%.  Furthermore, we have the current economic situation in Latin America which is driving the growth of GRUPO SURA's core investments, with the population in the majority of countries in this part of the world now enjoying greater financial capabilities relative to savings and financial products.

"It was highly gratifying to see, in 2012, that the steps we took with regard to our ongoing international expansion were sound and highly consistent with the Company's ongoing strategy.  Not only did we extend our portfolio of investments but we also saw how our investments are creating true added-value for the Organization as a whole, enabling us to further our position as a financial holding company with a view to the long term," noted David Bojanini, Chief Executive Officer of GRUPO SURA.

Our share performance was also an important factor in the results we presented today, thanks to the gains in pesos obtained last year, that is to say 22.1% in the case of our ordinary stock and 18.2% for our preferred stock, excluding dividends, these being much higher than the average gain of 16.6% for the COLCAP Index. The Company's market capitalization came to COP 22.0 billion ( USD 12.3 billion) showing a growth of 18.5%, thereby ranking us as a large cap company on the Latin American market. Also, the appetite for GRUPO SURA stock on the part of international investors continued to grow. The number of foreign funds who became shareholders rose by 83%, going from 271 to 497 in the space of just one year. These now hold a total stake of 12.3% in the Company compared to 9.8% for the previous year.

As a result of the priority deleveraging strategy that GRUPO SURA put into place early in 2012, liabilities fell by 67.4% to COP 888,318 million ( USD 502.4 million) at the end of last year. This produced a debt ratio of just 4.1%, which was much lower than that recorded for 2011, while assets came to COP 21.7 billion ( USD 12.3 billion). Consequently Shareholders' Equity rose to COP 20.8 billion ( USD 11.8 billion).

With respect to the outlook for both the Company and its core investments, Mr. Bojanini noted: "We shall continue with our growth plans, both organic and non-organic, this year. We intend to develop a comprehensive and complementary range of financial services in each of the countries where we are present, so as to be able to better assist our clients and fund members in the different stages of their life cycles." With regard to GRUPO SURA's commitment to sustainable business management, Mr. Bojanini reminded the shareholders that "Our prime purpose is to grow while helping the countries where we are present and their people to share in this growth. Rather than being the largest, we want to be the best with a truly different value proposal."

The fact that the Company's listing on the Dow Jones Sustainability Index was reconfirmed and its International Investment Grade was renewed by Fitch Ratings and S&P last year were also mentioned as significant achievements obtained in 2012.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs