Grupo de Inversiones Suramericana S A : 2023 Q4 Consolidated financial statements

CONSOLIDATED

FINANCIAL STATEMENTS

DECEMBER 31, 2023

GRUPO DE INVERSIONES SURAMERICANA S.A.

Cra. 43A #5A - 113

Medellín, Colombia

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CONSOLIDATED FINANCIAL STATEMENTS
TABLE OF CONTENT
NOTE 2. BASIS OF PRESENTATION OF THE CONSOLIDATED FINANCIAL STATEMENTS AND
SIGNIFICANT ACCOUNTING POLICIES	26
2.1. Statement of compliance	26
2.2. Basis of presentation	27
2.3. Significant accounting policies	29
2.3.1. Cash and cash equivalents	29
2.3.2. Financial instruments	29
2.3.3. Insurance contracts	33
2.3.4. Taxes	39
2.3.5. Property and equipment	40
2.3.6. Leases	41
2.3.7 Intangible assets	42
2.3.8. Investments in associates	43
2.3.9 Non-current assets held for sale and discontinued operations	44
2.3.10 Employee benefits	45
2.3.11. Operating segments	46
2.3.12. Income	47
2.3.13. Earnings per share	49
2.4. Reclassifications	49
NOTE 3. SIGNIFICANT ACCOUNTING JUDGMENTS, ESTIMATES, AND CAUSES OF UNCERTAINTY
IN THE PREPARATION OF THE FINANCIAL STATEMENTS	50
NOTE 4. NORMS ISSUED NOT EFFECTIVE YET	55
NOTE 5. FINANCIAL INSTRUMENTS	57
5.1. Financial Assets	57
5.1.1 Cash and cash equivalents	57
5.1.2. Investments	57
5.1.3. Other accounts receivable	59
5.1.4. Impairment of financial assets	60
5.2. Financial liabilities	60
5.2.1. Derivative instruments	62
5.2.2. Other accounts payable	66
5.2.3. Bonds issued	66
5.2.4. Commitments with non-controlling shareholders	67
NOTE 6. INSURANCE CONTRACTS	69
6.1. Insurance contract Assets	69
6.2. Reinsurance contract assets	69
6.3. Premiums	70
6.4. Liabilities for insurance contracts	71
6.4.1. Accounts payable insurance activity	71
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6.4.2. Estimated insurance contract liabilities	71
6.5. Liabilities under reinsurance contracts	72
6.6. Claims withheld	72
6.7. Insurance costs and expenses	72
NOTE 7. INCOME TAXES	72
7.1. Applicable regulations	72
7.2. Current taxes	74
7.3. Tax recognized in the income statement for the period	75
7.4. Effective rate reconciliation	75
7.5. Deferred taxes	76
7.6. Unrecognized temporary differences due to unused tax credits	77
7.7. Uncertainty regarding income tax treatments	77
NOTE 8. DEFERRED ACQUISITION COST - DAC	77
NOTE 9. INVESTMENTS IN ASSOCIATES AND JOINT VENTURES	78
9.1. Investment in associates	79
9.2. Joint ventures	82
9.3. Impairment of investments in associates	84
NOTE 10. NON-CURRENT ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS	86
NOTE 11. PROPERTY AND EQUIPMENT	94
NOTE 12. RIGHT-OF-USE	95
NOTE 13. INTANGIBLE ASSETS	96
13.1. Goodwill	97
13.2. Intangible Assets other than goodwill	98
13.3. Business combinations	99
13.3.1 Protección and Crecer	99	102
NOTE 14. OTHER ASSETS
14.1 Investment properties	102
14.2 Other non-financial assets	102
14.2.1 Other assets	103
14.2.2 Inventories	103
14.2.3 Restricted cash	103
NOTE 15. EMPLOYEE BENEFITS	103
15.1 Short-term benefits	103
15.2 Long-term benefits	104
15.3 Post-employment benefits	106
15.3.1 Defined benefit plans	107

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15.3.2 Defined contribution plans	109
15.4 Employee benefits expense	109
NOTE 16. PROVISIONS AND CONTINGENT LIABILITIES	109
16.1 Provisions	110
16.2 Contingent liabilities	110
NOTE 17. DEFERRED INCOME LIABILITY (DIL)	110
NOTE 18. PREFERRED SHARES	111
NOTE 19. EQUITY	111
19.1. Issued capital	111
19.2. Issuance premium	112
19.3. Reserves	112
NOTE 20. DIVIDENDS PAID AND DECLARED	113
NOTE 21. OTHER COMPREHENSIVE INCOME	113
NOTE 22. NON-CONTROLLING INTEREST	114
NOTE 23. OPERATING SEGMENTS	115
23.1. Reportable segments	115
23.2. Information about operating segments	116
23.3. Geographical information	119
NOTE 24. COMMISSION INCOME AND EXPENSES	120
24.1. Commission income	120
24.2. Expenses for commissions paid to intermediaries	120
NOTE 25. PROVISION OF SERVICES	120
25.1. Income from sale of services	120
25.2. Costs of sale of services	121
NOTA 26. OTHER INCOME AND EXPENSES	121
NOTE 27. ADMINISTRATIVE EXPENSES	122
NOTE 28. FEES	122
NOTE 29. FINANCIAL RESULT	122
NOTE 30. EARNINGS PER SHARE	123
NOTE 31. FAIR VALUE	124
31.1. Fair value measurement on a non-recurring basis	125
31.2. Determination of fair value	125
31.3. Fair value measurement on a recurring basis	126
31.4. Transfer between hierarchy level 1 and fair value hierarchy level 2	127
31.5. Reconciliation of fair value hierarchy level 3	128
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31.6. Fair value of financial assets and liabilities recognized at amortized cost or other valuation method

.....................................................................................................................................................128

NOTE 32. RISK MANAGEMENT	129
NOTE 33. CAPITAL MANAGEMENT	190
NOTE 34. RELATED PARTY DISCLOSURES	190
34.1. Related party	190
34.2. Transactions with related parties	191
NOTE 35. OTHER MATTERS	192
NOTE 36. EVENTS AFTER THE REPORTING DATE	192
NOTE 37. APPROVAL OF THE FINANCIAL STATEMENTS	194
ANALYSIS OF FINANCIAL RESULTS (UNAUDITED)	196

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CONSOLIDATED FINANCIAL STATEMENTS

CERTIFICATION OF THE CONSOLIDATED FINANCIAL STATEMENTS

The undersigned Legal Representative and Public Accountant, under whose responsibility the consolidated financial statements were prepared, certify:

That for the issuance of the consolidated statement of financial position as of December 31, 2023, and of the consolidated statement of income for the year and consolidated comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the period ended on that date, which according to the regulations are made available to shareholders and third parties, the statements contained therein and the figures faithfully taken from the books have been previously verified.

Said affirmations, explicit and implicit, are the following:

Existence: The assets and liabilities of Grupo de Inversiones Suramericana S.A., exist on the cut- off date and the transactions recorded, have been realized, during the year.

Integrity: All economic events have been recognized.

Rights and obligations: The assets represent probable future economic benefits, and the liabilities represent probable future economic sacrifices, obtained or under the charge of Grupo de Inversiones Suramericana S.A., on the cut-off date.

Valuation: All elements have been recognized, in the appropriate amounts.

Presentation and disclosure: Economic events have been correctly classified, described, and disclosed.

In accordance with Article 46 of Law 964 of 2005, in my capacity as legal representative of Grupo de Inversiones Suramericana S.A. The Financial Statements and other relevant reports for the public, related to the fiscal year as of December 31, 2023 and December 31, 2022 do not contain vices, inaccuracies or errors that prevent the true equity situation or the operations of the Company from being known.

Gonzalo Alberto Pérez Rojas	Juan Guillermo Chica Ramírez
President	Accountant
	Professional Card 64093-T

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CONSOLIDATED FINANCIAL STATEMENTS

AUDITOR REPORT

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CONSOLIDATED FINANCIAL STATEMENTS

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