• Operating revenues reached COP 14.4 trillion for the first half of the year, this driven by the good levels of subsidiary performance with their different lines of business as well as higher revenues obtained via the equity method.
• Consolidated net income rose by 55% at the end of the first half of the year, with Grupo SURA's controlling net income reaching COP 987 billion.
• More than 44 million people and companies in 10 countries throughout the region receive SURA's support through its insurance, savings and investment products, solutions and services.
• The strength of Suramericana and SURA Asset Management's balance sheets has been demonstrated with the ratification of the credit ratings awarded to their long-term indebtedness.

Grupo SURA's consolidated financial results at the end of the second quarter reflect the importance of having a well-diversified portfolio. It is worthwhile noting the remarkable levels of performance with the different SURA lines of business in all 10 countries in the region, combined with strict cost controls over Suramericana's and SURA Asset Management's operations. Likewise, the Group's associated companies such as Bancolombia, Grupo Nutresa and Grupo Argos continued to post good levels of results.

Consequently, Grupo SURA reported operating revenues of COP 7.5 trillion (USD 1,922 million*) at the end of the second quarter, the highest figure in the Company's history, for a YTD total of COP 14.4 trillion (USD 3,687 million) and an increase of 24% compared to the same period last year.

This led to the highest consolidated net income in the last seven years, that is to say COP 603 billion (USD 154 million) for Q2 alone, as well as COP 1.04 trillion (USD 267 million) for the first half of the year, for an annual increase of 55%. Controlling net income, attributable to Grupo SURA, rose by 59% at the end of Q2 2022 for a total of COP 987 billion (USD 252 million).

"We continue on a path to greater sustainable profitability, having posted a record level of consolidated revenues for this past second quarter. Indeed, revenues on a 12-month trailing basis increased by COP 2.7 trillion compared to end 2021, which demonstrates the strength of the Suramericana and SURA AM lines of business as well as the strength of a portfolio managed with a long-term vision, which allows us to create added value for all our shareholders as well as society as a whole," stated Gonzalo Pérez, CEO of Grupo SURA.

In fact, from a medium-term perspective, total revenues show a compound annual growth of 14.6% between 2015 and 2022, going from COP 11.4 trillion in 2015 to COP 27.6 trillion in 2022 (over the previous 12 months ending at the end of Q2 2022). Controlling net income, also for the last twelve months, shows an increase of 25.9% compared to 2021 for a total of COP 1.8 trillion, the highest ever posted.

Our consolidated financial results went hand in hand with a controlled increase in operating expense, which rose at a lower rate than total revenues and mitigated the increase in claims, mainly due to an increase in Suramericana's claims rate corresponding to its car insurance solution, while the claims rate corresponding to COVID-19 declined. Also noteworthy are the efficiency and productivity efforts on the part of SURA Asset Management, whose operating expense increased by just 3.4% at the end of Q2 2022, while for this same time frame there was an uptrend with revenues obtained via equity method, which rose by 61.3%.

“Our consolidated results at the end of this past first half exceeded the figure budgeted earlier on this year. Key to these results has been the operating performance of the Group's different lines of business, the disciplined spending and the efficiencies on the part of its subsidiaries as well as the uptrend of the revenues received from associated companies, namely Bancolombia, Grupo Argos and Grupo Nutresa. This confirms, once again, the importance of having a well-diversified portfolio," commented Ricardo Jaramillo, Grupo SURA's Chief Business Development and Finance Officer.

Subsidiary performance
Suramericana continues to consolidate its operations in all 9 countries as the fourth largest Latin American insurance company in the region, attending more than 22 million people and companies by providing more solutions for essential human issues such as health, mobility and competitiveness.

The growth posted in all its lines of business is evidenced by a 26% increase in written premiums at the end of Q2 2022, totaling COP 12.2 trillion (USD 3,128 million), with double-digit growth rates in the Life (16.8%), Property and Casualty (28.6%) and Health Care (21.8%) insurance segments.

This level of performance and the increase in investment income drove up net income for the first half of the year to a total of COP 263 billion (USD 67 million), which contrasts with a slight loss recorded at the end of Q2, 2021. This was made possible in spite of the 72.4% increase in the retained claims rate.

For its part, SURA Asset Management maintained the same level of operating dynamics of its Retirement and Voluntary Savings businesses (Inversiones SURA and SURA Investment Management), which already attend a total of 22 million clients throughout the region. In this way, it has been able to consolidate its position as the leading pension fund management company in Latin America with more than COP 565 trillion (USD 136,294 million) in Assets under Management. Likewise, its commitment to people's financial wellbeing is reflected in platforms such as "qiip", which already has 2 million users in both Colombia and Mexico.

Fee and commission income came to COP 1.2 trillion (USD 313 million), for a drop of 4.6% compared to Q2 2021. This was in line with initial expectations, mainly due to the regulatory reduction in fees and commissions charged in Mexico and a lower investment appetite in the voluntary savings segment, with greater uncertainty prevailing over the capital markets. This also affected the fund management subsidiaries' own investment income (legal reserves).

This has been partially mitigated by disciplined controls over operating expense, so that, after the losses recorded in the first quarter of this year, SURA AM obtained between April and June a net income of COP 90 billion (USD 23 million) and for the first six months of the year this came to COP 43 billion (USD 11 million).

Other recent highlights:
On a par with the consolidated results at the end of Q2 2022, the following are just some of the aspects relating to our integrated management of our financial, human, natural and social capital, as we move further forward towards sustainable profitability:

• S&P affirmed its AAA credit rating with a stable outlook for Suramericana's long-term debt. Likewise, SURA Asset Management maintained its Baa1 rating from Moody's, which recognized its sound financial position.
• SURA was ranked 57th among the 100 top organizations in Latin America with the best corporate reputation, according to the Merco survey. It is also the top Colombian company in this ranking with Suramericana placed in second place within the insurance sector.
• Grupo SURA was included in the Private Social Investment Index (IISP) earning special mention in the Recognition category as one of the Colombian companies that obtained the highest rating for its best practices regarding its social capital management function.
• SURA moved up to fifth place among the Best Places to Work in Colombia, according to the latest Merco Talento survey, which evaluates the best capacity to attract and retain human talent in Colombia and confirms the Organization's commitment to the integral development of the people pertaining to the organization.

*Restated figures in US dollars: Figures taken from the Company´s Statement of Comprehensive Income, restated using the average exchange rate for Q2 2022: COP 3,914; Figures taken from the Statement of Financial Position based on the exchange rate corresponding to the end of Q2 2022: COP 4,151.