Quarterly Report 4Q. SURA Asset Management

Transcription

1 Quarterly Report 4Q SURA Asset Management

2 CONTENT 01 SURA Asset Management presence in Latin America 02 Financial Performance and Main Comercial Figures 03 Investment Performance 04 Highlights 05 Annex SURA ASSET MANAGEMENT 2

3 SURA ASSET MANAGEMENT MAIN FIGURES MEXICO USD 28,736 M 15.0 % 7.1M 3,092 (Ranking 3) ASSET UNDER MANAGEMENT 18.8 MILLION OF CLIENTS USD BILLIONS Market Share (AFP): 23.0% (Ranking 1) International Investment grade: Fitch BBB+ Moody s Baa1 6 COUNTRIES USD EL SALVADOR USD 4.799M 47.5 % 1.6 M 311 (Ranking 2) PERU USD 20,048 M 39.4 % 2.0M 670 (Ranking 1) CHILE USD 46,209M 19.3 % 1.8M 2,468 (Ranking 4) COLOMBIA USD 31,433 M M 1,840 % (Ranking 2) EBITDA MILLIONS URUGUAY 8,664 EMPLOYEES USD3,028 M 17.6 % 328Mil 168 (Ranking 2) Figures in million dollars, as of december 2017 Clients and AUM include Protección and Crecer, entities not consolidated by SURA AM SURA ASSET MANAGEMENT 3

4 Santiago de Chile FINANCIAL PERFORMANCE AND COMMERCIAL FIGURES

5 SURA ASSET MANAGEMENT CONSOLIDATED FIGURES OPERATIVE INCOME FOR PENSION FUNDS ADMINISTRATION INSURANCE MARGIN dec % < 13.4% dec % < -6.1% dec dec OPERATING EXPENSE NET INCOME dec % < 7.8% dec % < 0.6% dec dec Figures in million dollars dec -16 dec -17 %var %Var. Excl. Forex effect SURA ASSET MANAGEMENT 5

6 SURA ASSET MANAGEMENT CONSOLIDATED INCOME STATEMENT DEC 17 DEC 16 % Var %Var Excl - Forex effects Fee and commission income % 5.8% Investment income % -0.9% Gains and losses at fair value % % "Encaje" return % 118.7% Income (Expense) of Equity Method % 45.0% Other operating revenue % -31.0% Operative revenues for pension funds administration % 13.4% Gross premiums % -13.9% Premiums ceded to reinsurers (10.5) (7.5) 39.7% 34.0% Net Premiums % -14.3% Proceeds from investments backing reserves % 23.3% Gains and losses at fair value backing reserves % 26.8% Claims (362.1) (238.9) 51.6% 46.4% Movement in premium reserves (472.6) (634.6) -25.5% -28.1% Insurance Margin % -6.1% Gastos operacionales de ventas (143.4) (134.8) 6.4% 4.1% Costos de Adquisición Diferidos -DAC (2.6) % % Operating and administrative expenses (369.9) (327.2) 13.1% 10.5% Wealth tax (7.5) (18.6) -59.6% -60.9% Total operating expenses (523.5) (474.5) 10.3% 7.8% Figures in million dollars Operating income % 16.9% Financial income % 24.8% Financial expense (61.9) (54.2) 14.3% 12.3% Income (expense) financial derivatives % 9.2% Income (Expense) on exchange differences (21.6) % % Net earnings before income tax % 9.6% Income tax (128.2) (101.8) 26.0% 23.4% Profit for the year from continuing operations % 1.5% Profit for the year from discontinued operations % -4.5% Net earnings for the year % 0.6% 6 SURA ASSET MANAGEMENT 6

7 SURA ASSET MANAGEMENT RECURRING INCOME AND EBITDA REAL FX YTD RESULTS RECURRING INCOME dic 17 DIC 16 % Var %Var Excl - Forex effects EBITDA dic 17 DIC 16 % Var %Var Excl - Forex effects Net Income without non-recurring items % 1.5% Non-Recuerrent Items 0.0% Wealth tax % -60.9% Wealth tax impact in Protección s equity method % -13.6% Tax benefit AFP Capital (25.0) COFECE % Net Income without non-recurring items % 14.4% Non-Cash Items Intangible asset amortization (ING and Invita) % 10.7% Deferred tax intangible asset (ING and Invita) (9.8) (3.7) 166.7% 166.3% Intangible asset amortization (Horizonte) % -0.4% Deferred tax intangible asset (Horizonte) (2.0) (1.9) 3.1% -0.4% Income (expense) exchange difference 21.6 (0.9) % % Income (expense) financial derivatives (19.9) (17.6) 13.0% 9.2% Net Income after non-recurring and noncash items % 22.8% Underlying Result Before minority interest % 0.6% +Depreciation and amortization % 9.1% +Financial expense % 59.3% +/-Income (expense) Exchange difference 21.6 (0.9) % % +/-Income (expense) financial derivatives (19.9) (17.6) 13.0% 9.2% +/-Income Taxes % 23.4% +/-Wealth tax % -60.9% Consolidated EBITDA % 17.0% EBITDA without "Encaje" % 8.8% Margin Ebitda without " Encaje" 52.2% 51.4% 1.7% 1.8% Encaje "return" % 118.7% Net Income after non-recurring and noncash items-without encaje "return" % 3.5% Figures in million dollars 7 SURA ASSET MANAGEMENT 7

8 SURA ASSET MANAGEMENT CONSOLIDATED STATEMENT OF FINANCIAL POSITION ASSETS Figures in million dollars dic 17 DIC 16 Var% Financial assets 4, , % Goodwill 1, , % Other intangible assets % Investments in associates % Investment properties % Accounts receivable % Deferred acquisition costs (DAC) % Cash and Cash equivalents % Deferred tax assets % Current tax % Fixed assets % Financial asset for hedging % Activos por contratos de reaseguros % Others % Non Current Assets held for sale 90.4 TOTAL ASSETS 8, , % MAR 17 DIC 16 Var% LIABILITIES Technical reserves 3, , % Bonds % Financial obligations % Financial liability for hedging % Deferred tax liabilities % Current tax liabilities % Accounts payable % Employee benefits % Deferred income liabilities (DIL) % Provisions % Other liabilities % Liabilities of a disposal group classified as held for TOTAL LIABILITIES 5, , % SHAREHOLDERS EQUITY Subscribed and paid-in capital % Share premium 3, , % Other capital reserves % Other comprehensive income % Net income from the year % Translation differences (855.9) (1,083.2) -21.0% Total controlling interest 3, , % Non-controlling interest % TOTAL EQUITY 3, , % TOTAL LIABILITIES AND SHAREHOLDERS 8, , % 8 SURA ASSET MANAGEMENT 8

9 SEGMENTS MAIN FIGURES MANDATORY dec 17 dec 16 %Var %Var Excl - Forex effects Fee and commission income % 3.7% "Encaje" return % 118.7% Income (Expense) of Equity Method % 54.8% Operative income for pension funds administra % 12.2% Total operating expenses (299) (264) 13.2% 11.2% Operating income % 12.8% Income tax (100) (68) 46.8% 44.7% Net earnings for the year % 4.6% VOLUNTARY dec 17 dec 16 %Var %Var Excl - Forex effects Fee and commission income % 27.2% Income (Expense) of Equity Method % -27.8% Insurance Margin % 3.1% Total operating expenses (107.6) (93.7) 14.9% 11.7% Operating income (10.6) (12.8) -17.5% -20.3% Income tax (0.4) (4.8) -91.0% -91.3% Net earnings for the year (10.6) (17.1) -37.9% -40.3% Figures in million dollars INSURANCE dec 17 dec 16 %Var %Var Excl - Forex effects Net Premiums % -17.6% Proceeds from investments backing reserves % 12.3% Claims (129) (106) 22.5% 19.3% Movement in premium reserves (367) (437) -15.9% -18.5% Insurance Margin % -9.4% Total operating expenses (34) (30) % Operating income % -28.7% Net earnings for the year % -55.8% CORPORATE dec 17 dec 16 %Var %Var Excl - Forex effects Total operating expenses (83) (87) -4.5% -7.3% Financial expense (59) (52) 13.8% 11.9% Income (expense) financial derivatives % -49.8% Income (Expense) on exchange differences (19) (0) % % Income tax (19) (22) -10.4% -13.5% Net earnings for the year (132) (141) -6.3% -8.8% 9 SURA ASSET MANAGEMENT 9

10 MANDATORY MAIN FIGURES FEE AND COMMISSION INCOME 7.9% 6.5% -0.3% 13.6% 5.7% 3.5% 7.7% -3.7% 8.0% 3.7% ENCAJE RETURN 118.9% 615.5% 49.3% 226.5% 126.6% 109.9% 624.0% 44.3% 210.3% 118.7% Chile Mexico Peru Uruguay Total Chile Mexico Peru Uruguay Total OPERATIVE EXPENSES 16.9% 14.7% 3.4% 26.2% 13.2% 12.1% 16.1% -0.1% 19.9% 11.2% NET INCOME -7.9% 6.1% 10.6% 18.9% 62.5% 7.3% -11.6% 7.3% 6.8% 13.0% 57.2% 4.6% Figures in million dollars Chile Mexico Peru Uruguay Total dec -16 dec -17 %var %Var. local currency Chile Mexico Peru Uruguay EM Protección Total y AFP Crecer SURA ASSET MANAGEMENT 10

11 MANDATORY COMMERCIAL FIGURES ASSET UNDER MANAGEMENT 20.6% 18.9% 16.4% 29.6% 19.9% 9.5% 19.1% 9.3% 12.6% 12.5% 26.7% 19.3% 9.5% 13.2% 119,065 99,930 AFFILIATES (MILLION) -2.8% -2.2% -0.1% -0.1% 4.1% 4.8% 0.2% ,033 33,188 28,998 23,562 18,789 24,175 19,820 16,138 2,884 4,800 2,224 4,384 Chile Mexico Peru Uruguay Protección El Salvador Total SALARY BASE FEE Chile Mexico Peru Uruguay Protección El Salvador Total 7.50% 3.92% 16.23% 9.80% 6.35% 7.63% 3.1% 0.4% 10.5% 6.2% 6.3% 4.0% 39,251 36, % 1.44% 1.07% 1.03% 1.55% 1.55% 1.99% 1.89% 1.09% 1.04% 1.26% 1.26% 13,696 12,740 8,561 8,238 1,425 1,226 12,743 11,606 Figures in million dollars Figures include Protección and Crecer, entities not consolidated by SURA AM 2,826 2,657 Chile Peru Uruguay Protección El Salvador Total Chile Mexico Peru Uruguay Protección El Salvador dec -16 dec -17 %var %Var. local currency 11 SURA ASSET MANAGEMENT 11

12 VOLUNTARY MAIN FIGURES FEE AND COMMISSION INCOME 27.7% 15.3% 63.9% 158.8% 0.0% 29.9% 22.5% 16.7% 58.3% 146.0% 0.0% 27.2% 70 NET PREMIUMS WITH SAVINGS -5.7% -5.7% -9.6% -9.6% Chile Mexico Peru Uruguay Colombia Total Chile Total OPERATIVE EXPENSES 10.7% 18.2% 9.6% 50.8% 87.1% 14.9% 6.2% 19.6% 5.9% 43.3% 81.0% 11.7% Figures in million dollars Chile Mexico Peru UruguayCorporate and otherstotal dec -16 dec -17 %var %Var. In local currency 12 SURA ASSET MANAGEMENT 12

13 VOLUNTARY COMMERCIAL FIGURES ASSET UNDER MANAGEMENT 26.5% 35.5% 57.9% 99.2% 21.0% 31.7% 14.7% 28.3% 52.5% 94.7% 20.4% 24.4% 9,429 12,421 CLIENTS (Miles) 6.9% 32.2% 22.5% -8.2% 15.6% 15.1% ,056 4,523 3,207 3, , ,0122, Chile Mexico Peru Uruguay Protección Total NET FLOW -53.4% 93.5% 33.0% 44.8% 90.4% 35.5% -57.8% 83.3% 28.4% 41.6% 89.3% 28.0% 1,108 1,502 Chile Mexico Peru Uruguay Protección Total RETURN % 22.69% % % 16.90% 41.88% 118.6% 16.2% -22.7% 128.0% 16.3% 35.4% Chile Mexico Peru Uruguay Protección Total Figures in million dollars Figures include Protección and Crecer, entities not consolidated by SURA AM dec -16 dec -17 Chile Mexico Peru Uruguay Protección Total %var %Var. In local currency 13 SURA ASSET MANAGEMENT 13

14 REGIONAL LEADER IN THE PENSION FUND SECTOR Economic Group Region Chile Mexico Peru Colombia Uruguay El Salvador 23.0% % % % % % % % 9.3% 25.2% 2.3% Chile Colombia El Salvador México Perú 21,3% 36,8% 46,5% 14,1% 41,5% 19.5% 5.0% 2 7.0% 27,9% 3,0% 23.1% 3 20,7% 6,7% % 27.4% 26,2% 3.5% 0,1% % 42,6% 26,7% 42.9% 7 5.4% 17.9% 53,5% 17,0% % 13,2% 26,7% 25.6% 12.8% 11,7% AUM Industria % % Total industry Number of players Figures as of december 2017 This information is removed from superintendency of each country, which includes only AFP S AUM (mandatory pension, voluntary pension and severance). 14 SURA ASSET MANAGEMENT 14

15 Santiago de Chile HIGHLIGHTS

16 HIGHLIGHTS SURA Asset Management Peru: The SBS authorized Intercorp to buy Seguros Sura. It grants six months to formalize the merger with Interseguro. The operator of SURA Funds in Mexico won the "Investment Management Company of the year 2017 Mexico" prize from "The European". SURA Asset Management Uruguay launched its mobile application "SURA Fondos" with the aim of guaranteeing its users an effective saving of time. The tool enables clients to visualize the different savings and investment products contracted with AFISA SURA, such as the Protection fund, Dollar, Conservative and Basic Savings Funds. AFP Integra in Peru won th bid of Platinum Building. The FIRBI goes from USD 36 to USD 72 million. The Superintendency of Pensions of Chile issued the rule that will allow the investment of pension funds in alternative assets, the reform will take effect next November. SURA ASSET MANAGEMENT 16

17 Santiago de Chile ANNEX

18 EXCHANGE RATE LOCAL CURRENCY TO USD: dic-17 Average.MXN 18.9 Average.CLP Average.PEN 3.3 Average.COP Average.UYU 28.6 LOCAL CURRENCY TO USD: dic-17 Last.MXN 19.5 Last.CLP Last.PEN 3.2 Last.COP Last.UYU Mexico Average Mexico Last MXN / USD PEN / USD Peru Average UYU / USD Uruguay Average Peru Last Uruguay Last 3,300 3,100 2,900 2,700 2,500 2,300 2,100 1,900 1,700 CLP / USD 700 Chile Average Chile Last COP / USD Colombia Average Colombia Last SURA ASSET MANAGEMENT 18