GIVSY Grupo De Inversiones Suramericana SA (PK)

MEDELLIN, Colombia, April 30 /PRNewswire-FirstCall/ -- Grupo de Inversiones Suramericana (OTC Bulletin Board: GIVSY; BVC: GRUPOSURA) got off to a good start this year with USD 158,308 thousand in net profits for Q1, which represents a growth of 215.9% compared to the same period last year.

This included operating earnings for a total of USD 170,291 thousand, including subsidiary revenues recorded via the equity method equivalent to USD 141,107 thousand from Suramericana S.A., Portafolio de Inversiones Suramericana S.A.- (subject to liquidation) Inversiones y Construcciones Estrategicas S.A., Grupo de Inversiones Suramericana Panama S.A. and Enlace Operativo S.A..

With regard to the individual performance of Suramericana S.A. it is worthwhile noting revenues of USD 103,517 thousand for Q1, representing a 222% growth versus the same period last year; this mainly due to having sold off certain investments as well as to the excellent performance of its insurance business, with property and casualty premiums increasing by 21.9% and life insurance premiums by another 14.1%, both compared to the same quarter last year; this in addition to its social security companies.

GRUPOSURA received USD 13,377 thousand in dividend and interest income on its investments, which was similar to the figure recorded for the first quarter last year. On the other hand, profits from sales of investments came to USD 16,069 thousand, which included the divestiture of a stake held in Almacenes Exito which, as you may recall, obeyed a decision taken by Grupo de Inversiones Suramericana to focus on its strategic investments mainly in the financial sector, insurance and social security sectors. 

Assets and Shareholders' Equity Continued to Grow

After being ranked as No. 1 company in Colombia in terms of assets last year, this based on data issued by the Colombian Superintendency of Corporations, Grupo de Inversiones Suramericana posted a further 4.7% increase in assets for a total of USD 8.00 billion.

The Company's Finance and Investment Department announced that current assets at the end of Q1 came to USD 309,972 thousand. This included USD 184,699 thousand in negotiable investments, which in turn drove the Company's cash flow in the amount of USD 172,219 thousand along with USD 65,234 thousand in dividends receivable, representing important additional inflows for the Company from here to the end of the year.

Another important factor during this first quarter were appraisals of permanent investments that increased by 0.8% to USD 2.62 billion, mainly due to higher prices of listed stocks and higher intrinsic values of non-listed stocks.

Shareholders' equity came to USD 7.49 billion for an intrinsic share value at the end of Q1 2010 of USD 15,968.61, which is higher than the USD 15,906.30 recorded at year-end 2009.

The Company's liabilities came to USD 512,538 thousand, for an increase of 175.9%, the bulk of these concentrated in the short term. These include an issue of commercial paper for USD 121,575 thousand, repos for another USD 10,257 thousand and loans received from related companies totaling USD 98,368 thousand.

As far as long-term obligations are concerned, these dropped to USD 19,122 thousand during this first quarter.

With this level of results, Grupo de Inversiones Suramericana, one of the largest investment holding companies in Colombia, continues with its steadfast purpose of strengthening its equity, providing greater shareholder value and driving the growth and expansion of all those strategic sectors forming its core business.

ABOUT GRUPO DE INVERSIONES SURAMERICANA

Grupo de Inversiones Suramericana is a holding company listed on the Colombian Stock Exchange and registered in a Level 1 ADR program in the United States. It has an investment portfolio grouped in two major segments: the first, Strategic Investments, integrates the financial services, insurance and social security industries, as well as related services. The second segment, Portfolio Investments, is mainly composed of the food and cement industries.

GRUPOSURA management is focused on the Strategic Investment segment, playing a major, dynamic role in monitoring the companies in which it invests, creating synergy among them, as well as seeking new opportunities for the creation, growth and expansion of business.

SOURCE Grupo de Inversiones Suramericana