BRC Ratings confirms its ‘AAA’ rating for Suramericana’s long-term debt

Economy
  • The Suramericana subsidiaries have strengthened their market position, having obtained a share of almost 24% at the end of 2021.
  • The Suramericana subsidiaries in Colombia achieved a recovery in premium production, for a year-on-year growth of approximately 18% at the end of Q1 2022.

BRC Ratings - S&P Global S.A. SCV, a securities rating agency, once again ratified its 'AAA' rating for Suramericana S.A., as well as for its issue of ordinary bonds worth COP 1 trillion. This means that the Company remains one of the leaders in the Colombian insurance industry.

This ratings agency also made special mention of the fact that the Suramericana subsidiaries have strengthened their market position obtaining a share of almost 24% at the end of 2021. Emphasis was also placed on the effective diversification that the Company has built up in each of its business lines and marketing channels.

"We are very pleased that, once again, Suramericana has received an 'AAA' rating. This only goes to show the amount of work that our subsidiaries have done over the last several years, through which we have contributed to the region's growth," commented Juan Fernando Uribe, Suramericana's Chief Finance and Investment Officer.

Similarly, BRC Ratings highlighted the fact that the Suramericana subsidiaries in Colombia secured a rapid recovery with their premium production, achieving a year-on-year growth of approximately 18% at the end of Q1 2022, which was higher than the average of 7%, recorded between 2018 and 2021.

It is worth noting that this growth has been underpinned by a range of different insurance solutions, the momentum obtained with occupational risk policies and a greater demand for Health, Life and Vehicle solutions, which have shown a progressive rebound after the impact on their demand due to, among many factors, the previous lockdown measures.

The BCR report also mentioned that the Suramericana subsidiaries outside Colombia are also experiencing an uptrend in premium output, producing an increase of 13% at year-end 2021, which was maintained during Q1, 2022.

"We shall continue working on expanding our solutions in order to remain market competitive and become a benchmark for the entire region," concluded John Uribe, Chief Insurance Officer at Suramericana.