Grupo de Inversiones Suramericana S.A. (GRUPOSURA) Earnings Call Transcript & Summary

[Operator Instructions] Today, we are joined from Grupo SURA by Gonzalo Perez, the CEO; Mónica Guarín, Human Development VP; Ricardo Jaramillo, the CFO; Juan Luis Múnera, Legal Affairs VP; and Carlos Gonzalez, Investors and Capital Markets Manager. We are also joined by Carlos Oquendo, Corporate Finance VP of SURA Asset Management and Juan Fernando Uribe, Finance and Investment VP of Suramericana. Thank you for joining us today. Gonzalo, the floor is yours.

Thank you so much, Andrés, and thank you all for joining us in this teleconference of results of 2020 of Grupo SURA. To talk about the results of Grupo SURA in 2020, we need to begin to highlight that both 2020 and the pandemic, evidence that the strategy, not solely of Grupo SURA, but most importantly, of Suramericana and SURA Asset Management worked, and it worked despite epidemic. Indeed, I believe that the business result we can underscore is the use of a strategy that was prepared for events such as a pandemic, which takes place every 100 years in history. This strategy led us to several important things. First, we began to have results early on, on which we were careful about. The results seen in March or April, when we began to project the year were surpassed by the lot at the end of 2020. All of the companies, without exception, displayed results much higher than what we expected and what the companies themselves expected. On the economic side, these results led the companies to maintain their liquidity and solvency. Remember, in prior teleconferences, we have said always that our priority is on the economic side, again, to maintain the company's liquidity and solvency. Both were maintained liquidity, all of the solvency. All of the companies kept solvency margins way above the regulatory levels. In addition and worth highlighting is that all 3 companies, Suramericana, SURA Asset Management and Grupo SURA reduced their debt in similar proportions by each of COP 150 billion. That is COP 450 billion consolidated debt of these companies shrank last year. So liquidity plus solvency plus the reduction of debt, make us undoubtedly think that the criteria used to manage the companies are criteria to manage reserves with responsibility, to manage provisions to manage the company's overall during all these years, prepared us to reach a special year like 2020 and to surpass it, as I said before, showing positive results, as Ricardo will show you ahead, with profits, which are obviously far from what we intended early on in 2020 and different, of course, to those of 2020. A year of good profits for Grupo SURA, as you can remember. This is like the first item that we want to highlight in our 2020 results. These results are also something or a consequence that's very important and strategic, which is built every day and its risk diversification. When we talk about risk diversification, refer to regional, geographical and portfolio diversification. Obviously, we talk about investment diversification, which made it possible to see the results we are mentioning. It is also made possible for the companies to meet their budgets before the pandemic. This point is very relevant since keeping the clients of each of the affiliates is obviously important for the company's sustainability. For instance, companies like our HMO, EPS SURA, registered 500,000 more persons last year. So the growth in revenues of each of the companies were growth that were several times higher than inflation as Ricardo ahead will show us. It's important also to keep in mind, the diversification of our business lines, but also, we insist, on the geographic diversification which had a special connotation in 2020 and very particularly for Suramericana. Let's remember that we have been evolving with our investments in 5 new countries since 2015. On the other hand, knowledge also starts to be pivotal increasingly. And it was something that we prioritized. And also, we saw a good result from that knowledge in 2020. When we talk about knowledge, we can define it as that lethality rate, for instance, for the EPS SURA, which was 0.65% compared to the COVID-19 is 25% of the lethality rate that the world has seen in lethality rates. So making any guesses about the results, we could say fearlessly that while in the world, 60,000 people died from COVID-19, if the lethality rate of the planet would have been that of EPS Sura, it would have been 15,000, meaning we would have said 45,000 lives. And that lethality rate was the result of our knowledge, not only in health, but also in risks of anticipating curves. And there it's very important because our management strategy, our own knowledge applied, begins to be a reality and starts saving lives, which also obviously is seen in economic results for the companies. When we look at the individual capitalization system, also the attitude, the approach to our customers was relevant. Relevance, of course, of the results we'll see of SURA Asset Management, but even more of those results in which, after the decrease of the chance of removing the members to the funds in Chile and Peru that approach that we mentioned, the empathy we have with our members was of being absolutely agile to provide the funds to allow them to make their removals or withdrawals. Being empathetic with each of them led the vision of the people, both in Chile and in Peru, about pension fund managers. Remember that in 2018, the vision was very positive, changed radically. And that we can see in all the assessments made of the EPS in which our pension fund managers, and particularly, we really gained a lot of reputation. So from circumstances that was apparently critical, we managed to change the image we had of pension funds and to show each one of our members, that those are the other savings that they're available their liquid and incentivized, and we'll see it also with savings of the people. So it's quite important also what we need at SURA Asset Management with those withdrawals, which early on, we could see as something negative. So the bottom line is that we also achieved a social investment. The commitment to grow or expand society is a commitment that we all, and we're sure that you share it, is unavoidable. The growth and sustainability of any industry on the planet passes undoubtedly, because the growth of society is harmonic. We have to generate richness, wealth, we have -- we need economic wealth. And we also need to create social wealth. With that, we do it through businesses. And as I said about the HMO that also the workers' compensation is another example or the pension fund managers is another example where we create social wealth. But on the other hand, we also have our foundation, which invested about COP 91 billion last year. Those investments, undoubtedly, were short. As always, they will be for all the needs of Latin America, but they're still relevant, and we achieved those investments, advancements in terms of health care in all the countries of Latin America. To make contributions to health care contributions to ICUs, but also to be humanitarian aid to protect art and culture, which is vital in these times. Anyways, we have been showing harmonic results between the financial results, and we want to insist, for us, it's clear. Far, of course, of what we intended early in 2020. And in our growth pat today that we want to confirm, but obviously, better than what we expected with the pandemic and with the growth of our social responsibility, which is responsibility of absolutely all of us. So far, what I've said leads to a first conclusion is it has to do with the cash flow ahead. We'll refer to that as well as the dividends. But also we'd like to highlight that last year, we continue with optimization of capital. It's a systematic and ongoing task that we will continue that we began in previous years and those optimizations of capital allowed us to have the liquidity that we mentioned and allowed us to have a cash flow among others. So that the companies like Suramericana could invest COP 1.2 billion in the pandemic. So it's very important, firstly, to think that last year, we continue with the optimization of capital which led SURA Asset Management this year to reduce its debt by $40 million. And this year, we'll continue doing so absolutely systematically. This is also the result of knowledge because with only knowledge modeling, the capital exposed will allow us those optimizations of capital. And we have to complement it, undoubtedly last year, we did it with a systematic work and efficiency. But beyond efficiency, with an operational model that will allow us to develop a strategy at each company and in turn to have structural efficiencies. Therefore, last year, growth even of expenses, our growth of capital show us ahead but excluding the pandemic, it's a growth of less than 2% in the operation last year. Including the pandemic, it's a bit consolidated with a 4% growth, way below the operational or operating growth that even Grupo SURA had as a consolidated and each of the companies, which discloses that the indicator of expenses over revenues continues to systematically improve in each one of the companies and obviously, in the case of Grupo SURA. This is very important because these are structural works that we do not abandon because of the specifics of 2020. We have to underline that. So what does this lead us to? That we can say to you that for this year, 2021, our affiliates, nonetheless, with a year like 2020, kept their dividends, kept their projection of dividends which for several years, we have convened with them, and we have been able to tell you with peace of mind that we're not only going to maintain the dividend that last year, we provided to our shareholders, but we will increase it by 3.5%, which is more than twice the inflation that we had last year. So it's all of the structure that we insist that goes hand-in-hand with the strategy with works that are very structured that could adapt in a very special moment for mankind. And also go hand-in-hand with the growth of society that's absolutely harmonic and allows us to show you these results and obviously, to confirm to you all, our commitment to 2021 and to the years thereafter and to continue focusing on creating value to your shareholders. That's why we increased the dividend. That's why we want to keep our clear disposition for capital management that's absolutely careful, full of knowledge and equity efficiency and operating models that will allow us to develop strategies and to be more competitive to give you back the trust that you have given us with your capital at Grupo SURA. Lastly, I'd like to thank you, first, for joining us in these teleconferences especially this one. Also thank you for the trust you have in this company. In this long-term vision that Grupo SURA has with more than 76 years in operation. Our gratitude for being with us again and our absolute commitment to create increasingly for you value. I'd like now to leave you with Ricardo Jaramillo, our CFO, so that we can deepen and look at closely the figures on the income statement and the balance of Grupo SURA. Thank you so much again for joining us.

Thank you so much, Gonzalo, and good day, everyone. Thank you for joining us. I would like to begin by addressing the financial statements underscoring the strength of these companies to face the difficult situation we had last year as well as the liquidity and the solvency, which were paramount and pivotal, and a priority during the entire year, a true focus of our work and involved in every part of our activities. Let's begin with Slide 6. And the consolidated income statement, where I will shed light on the sound commercial dynamics displayed by both affiliates, Suramericana and SURA Asset Management. On the first line, you can see that premiums issued climbed 8.8% and that retained premiums and revenues from commissions of our 2 affiliates grew as well. So if we weigh both items, growth was 5.2%, which we can compare ahead with operating expenses climbed 4.3%, that is 100 basis points above the growth of revenues. When it comes to the revenue of Grupo SURA. It's also important to highlight the revenues from investments and the equity method, which together, you can see it's COP 1.3 billion of lower revenues, and that will explain closely in the next slide. When we look at operating expenses closely of each of the companies, I want to firstly highlight, first, the claims ratio item that we have when it comes to the property and casualty business and a higher claims ratio in Life, workers' compensation and Health because of the pandemic. But as Gonzalo said, we have a big effort on the contraction of expenses in decreasing expenses where if we exclude the expenses related to the pandemic, we're talking about a growth of 1.6% which curiously is the same number of Colombia's inflation. We can see in the final net earnings that the net profit of Grupo SURA was COP 336 billion. During this presentation, I want to be very realistic about the items that affected our numbers. And again, I'd like to say that helped us to pass-through this difficult crisis that we had last year. Moving on to Slide 7. We see closely the equity method and revenues from investments. Both items had significant impact, as I said before, and let's begin total equity method. It added to COP 362 billion for Grupo SURA. It's a quite low number compared to December 2019, which was COP 1.2 billion, almost COP 900 million difference, which is mainly explained by the impact of Bancolombia. Here, we're looking at the profit of Bancolombia multiplied by our percentage of ownership. And clearly, the impact of the bank was increased on the cost of credits because of the provisions made to back the pandemic. Grupo Argos also had an impact mainly because of its concessions business and highlights the positive performance of Nutresa. On the bottom, you can see revenues from investments. And here, you can see revenues at the end of 2018, at the end of 2019 and at the end of 2020. Just to compare them, understanding that this is a mirror of capital markets. And it had certain volatility in that in 2018 was a very bad fourth year for capital markets. '19 was good and 2020 had volatility. As you can see in the bottom right graph, where the first quarter was not good, practically 0, and we compensated some with the 3 following quarters. So to conclude, we had a 2020 better than 2018, but not as good as 2019. Moving on to Slide 8. We can see the contribution to the net profit consolidated of each of the companies I'd like to highlight that Suramericana and SURA Asset Management, we will see them closely to understand where the numbers come from. We see that the variation of profit from '19 -- 2019 to 2020 on the bottom graph, moved from COP 1.719 billion. Suramericana subtracted COP 170 billion (sic)COP 179 billion. SURA Asset Management subtracted COP 294 billion, and then we separated from the profit of the companies, excluding the reserve as the effect of the reserve. We can observe that the magnification we had was the equity method, as I mentioned in the previous slide. And we can also see how the items related to Grupo SURA. And here, I'd like to highlight particularly others. Remember that in 2019, we had a recurrence because of the sale of the company part in Sodexo. So this shows the profit -- I mentioned of COP 336 billion. Slide 9 shows you the components that Gonzalo mentioned in his introduction, liquidity and solvency. And how these were 2 fundamental items for our management during last year. Here, I particularly want to talk about Grupo SURA's management. The equity of Grupo SURA increased at the end of the year of 1.6%, which curiously is also the same value of inflation. So what we see here is that we remained with the same value of money and time in terms of equity and all the management of debt and of cash flow that we carried out in the company. We began in April, an exercise of stress testing, which helps us to anticipate to make decisions to issue bonds in August. That issuance of bonds allowed us to have different benefits such as organizing better the debt profile of the company to cash flow. And on the other hand, to have a lower cost of debt and to be able to have a lower exposure to dollars in terms of our indebtedness. Today, the exposure to dollars of Grupo SURA's debt is close to 4%. And again, I want to repeat that we have a cash flow managed for -- entirely for 2021. It's important to highlight, as Gonzalo said, that we had a reduction of the debt of COP 140 billion in Grupo SURA, which aims to that target that we have to continue with our deleveraging process. I'd like to highlight that the proposal to increase dividends of 3.5% means practically twice the inflation, and we'll be reaching a yield in the ordinary stock of 2.7% and preferential stock, close to 3.1%, which is attractive. Moving on to Slide 10, we can see the results of Suramericana. And there, I would like to shed light on the sound dynamics of the business, beginning with the premiums issued, this reached COP 18.7 billion, up 9.6%. And this shows us that despite all the situation of the pandemic in the 9 countries, we still have a very positive growth of revenues. On the other hand, I'd like to underline the dynamics given in the loss ratio of the company. We had a first quarter where the closing of the economy gave away to a loss ratio of property and casualty was lower. But then the claims ratio of Life, workers compensation and health was also low because we didn't have the number of people infected and lethalities. It was lower. However, in the second semester, once the economies began to open, the claims ratio of property and casualty went back to normality. But there now, the claims ratio of Life, workers' compensation and Health reached levels higher, obviously, because of managing the pandemic. It's also important to highlight what Gonzalo said regarding the fact that the company had a balance robust enough to assimilate an impact of COP 1.4 billion, which, as I said that in the first semester, there was less claims ratio for -- so the impact of COVID for Suramericana was COP 460 billion (sic) [COP 466 billion]. We can see in the graphs, the sound evolution of the premiums issued, the situation of the retained claims ratio. On the other hand, you can see the technical result, which shows us the health of the business as such, growing 3.8%, which, again, given the situation of the year before, we consider it satisfactory. Besides, as I said before, the expenses are controlled -- under control, and we have the indicator of the expenses of the company, which remains at 14%. Slide 12. And here, I'd like to show the benefit of diversification. As I said before, the segment of Life, the professional risks business and of health care, when it comes to insurance, had a significant impact when compared with a net profit of 2019, which was compensated somehow by property and casualty and by Health, both segments with a positive profit variation which compensated partly datafication of Life. In this company, we also had an impact, nonrecurrent impact that's seen in others, which is the sale of Palic which we had in 2019, we sold 30% and also part of the sale of Sodexo to reach Suramericana closing at 2020 with COP 211 billion. Slide 13 shows us in detail the segment of Life. Here, we see that the claims ratio related to COVID had a very significant impact on the results of the company. But I'd like to mainly highlight the sound dynamics of the growth of the business. The segment reached a level of premiums issued of COP 5.6 billion of 70%. It had to control our expenses, as I said before, as you can see on the upper right graph. On the bottom, you can see what I show -- we talked about the first and second semester. Clearly, the third and fourth quarter for the segment of Life was more complicated because those infected as well as the lethalities were significant. Here, it's very important to keep in mind the anticipation and the curves that we made in the company from the beginning of the pandemic, which allowed us to have the operational capacity to manage and to reach the good numbers to manage the pandemic. Look at the lower right-hand side graph. Here, the claims ratio of work risks and how this claims ratio, especially in the third quarter, had a very high peak. But now we can see in the fourth quarter, it starts to drop. Let's move on to Slide 14. We see here the segment of property and casualty. And here, we see a significant growth of premiums and lower claims ratio, especially at the first semester when the economies were closed, where it led us to have a positive net result in this segment. We can see how the growth of premiums was 6.9% as well as the recent combined had a significant improvement of 300 basis points. And I'd like to highlight as well the diversification that's given here, especially we see in Colombia, it was 41% and internationally it was 59%. Here, we highlight some of the operations in Chile, Argentina, Panama, which gives a light of the benefit of the expansion that the company has made in recent years. Let's move on to Slide 15. And here, we see the segment of Health. And here, I'd like to highlight that this segment keeps having a significant growth of revenues. This is driven because of lower claims ratio during the fourth quarter, and we see that the profit of that quarter was positive. This is a segment that has been growing significantly in years. We observed that in the year, the growth was 24.2%, more than 500 new affiliates. The same thing we said last year, if we had the last 2 years, we're talking about more than 1 million Colombians registered to our HMO. So here, there are several important benefits. First, that the entire segment has maintained the sound dynamics in terms of service and proof of that is that the lethality rate, which Gonzalo mentioned, was 0.6 for the clients of SURA versus that of 2.6 for Colombia. And this is quite relevant because it shows us the management of the company and on the other hand, the scale. We can see in the upper right hand graph that the efficiency of the company continues improving even with the crisis and pandemic and receiving this very significant number of members. I'd like to highlight also that SURA made 16% of the COVID tests in Colombia. And I'd like to highlight something that we told you in prior calls. And it's the complementary service plan. It's not mandatory, it's voluntary instead and it complements our services, and it's growing about 35%, already reached COP 200 billion in revenues and that 5% of the members in health care have that additional service or that complementary service plan. So this is the summary of the segment of Suramericana. Let's move on to Slide 17, where we can talk about the numbers or figures of SURA Asset Management. I'd like to begin with the message of positive growth of revenues from commissions which is very satisfactory, considering that the work market or employment market was hurt by unemployment throughout the region. And also, I'd like to highlight the recovery of reserves. Which had a lot of challenges throughout the because of the market of capitals. We observed that revenues from commissions grew 2% in the year and the revenue from our reserve that I said before, which was recovered at the end and the return related to the reserve was 8.6% in the case of SURA Asset Management. On the other hand, we see operating expenses, which is connected to what Gonzalo said when it comes to controlling expenses and having efficiency, which led to a growth of expenses of 3.4% and an operating profit approximately COP 1 billion. I'd like to also mention the financial result, which had an exchange impact, not because of debt because -- but because of the cash position that the company has in Chile, which had a positive impact in 2019 and that because of the devaluation was affected during 2020, which is part of the resources that we have for [indiscernible] investment, but it's very important to have that liquidity reserve at the beginning of the crisis and which is a reserve that the company still has. The net earnings of the company COP 431 billion, with some growth versus the year before, but again, very satisfactory, considering the challenging situation that we have in the capital markets. On the bottom graph, we can see how there is a contribution of each of the segments of this company. In this profit, mainly the expectation was in the business of savings or retirement, which had some of the impacts of commissions that some geographies here or in Peru, which particularly, there was 1 month where we had no revenues whatsoever. Also, the -- I'd like to highlight that the voluntary business, which is savings for investments and investment management contributed positively to the profit in COP 19 billion. On the other hand, the financial results and income tax, which has improvements, understanding that in previous years, we brought some resources from Chile, and we had more taxes for the company to close with COP 431 billion. Now let's move on to Slide 18, where we'll look at closely the savings for retirement business and here, I would like to highlight the growth of revenues understanding still that we had very significant unemployment rates in countries of the region and the reduction of fees in some of these countries. When it comes to revenues from commissions in the year, these reached COP 2 billion. Practically, there's no growth compared to the year before. And it's important to separate in the geographies where we charge by AUMs which is Mexico and a percentage in Peru, where we grew 7% -- 7.6%, and countries where we charge by flow, which is COP 1 billion, COP 1 billion, each of them, where we had a drop of 6.8%. The upward right graph, where we see that total AUMs of the segment shows that we reached COP 457 billion, up 7% driven mainly by Mexico, which grew 17.1%. And here we highlight that the company, the for -- in Mexico for third consecutive year had the silver medal from Morningstar. Also, I'd like to highlight at the end of last year, we had the bid for new members in Peru, which are pension funds won their, Integra. And that will mean about 800,000 new members for this company. Let's move on to Slide 19, where we'll see the business of savings and investments and of investment management. And here, we see a positive net profit for the fourth quarter that shows operating leverage without stopping growth. And in terms of growth, we can see AUMs that grew 19.9%, reaching COP 67 billion in these 2 business units. On the other hand, when it comes to revenues from commissions, these reached COP 323 billion with an annual growth of 19.2% and a growth in last quarter of 25.8%. And these growth dynamics are very important. If you particularly look at the net cash flow on the bottom left-hand side of the slide, where you can see that we had a net flow of COP 5.9 billion, up 17%. That was positive throughout all the quarters. And we can also see on the graph on the bottom right, the operating earning and how in the last quarter of the year -- last year, we observed a positive profit, which is quite relevant for that balance that we need in these units. Okay. This is the summary we had of the main figures. Right now, I'm going to give the floor to Mr. Juan Luis Múnera, who will give us details of the logistics of our next shareholders meeting. Thank you.

Thank you, Ricardo. Good morning to everyone. Given the sanitary situation caused by pandemic the general shareholders' assembly of Grupo SURA will be held this year with people and -- but restricted access to a very limited people -- number of persons so we have no disease. We will have -- physically, the members of management responsible are presenting to the shareholders' information related to 2020, which was announced in the agenda published this past 19th and 22nd of February on the website of the financial superintendence of Colombia and in the newspapers. This is suggested by the company to be the proxy holders of shareholders can be entered and the technical teams that will be helping us with the streaming will be at the assembly as well. The proxies, the information of those suggested for proxy holders. And all of the information related to the shareholders' assembly will be available tomorrow, March 3 on the company's website. Also at the Secretary General, you can consult additional information for which you can coordinate an appointment through the e-mail accionistas@gruposura.com.co. Likewise, we'll be available through the area of Investor Relations and Secretary General, to answer any questions. Thank you.

[Operator Instructions] We have a question from Mr. Julian Ausique from Davivienda Corredores.

I have 2 questions. One is related to the cash flow. Could you give us more details of the cash flow that you expect for 2021 and everything it has to do with the maintenance of this cash flow? And my second question has to do with AUMs. For 2021, I can see that you had good revenues; however, this is -- this -- what are your expectations with regards to new policies, especially those that are seen in Chile.

Perfect. Let me answer the cash flow question and then Gonzalo can answer your question when it comes to Chile and Peru and the AUMs. As we said in our presentation, since April approximately, we made some stress tests to understand the company's liquidity and solvency. And that allowed us to understand the amount of liquidity we had for every operation and what type of impacts they had in Grupo SURA. And those stress tests really covered everything for 2021 and it even led us to anticipate. That's why we told you in a prior teleconference, we had the issuance of bonds issued for COP 1 billion. And the idea was to -- and also, we keep in mind the bonds that will be matured in May. So we're talking about COP 830 billion, even we have an additional capacity to pay off bank debt. So our purpose is to be able to pay the dividends, meet all of our obligations without increasing the debt. How will we have in the market, the dividends received. Well, all the companies have been giving the messages of how they will be handing out the dividends. We had the fourth allotment of the dividend for this year. And then we have the new installments. So this leads that our dividends will be COP 760 billion, meaning a reduction of 25% of dividends. The other obligations, expenses, taxes, interest, we have a cash flow that's with -- of -- that it needs to meet them. We have the money to pay the debt of $300 million in May. And it's very important when it comes to the valuation of our shareholders' stocks and we -- to keep in mind that it's better to have an increase, as we said, of 3.5% of the dividends. Under -- that does not put into -- endanger, in any way, our cash flow and according to our calculations and analysis, it's fine.

Let me add something to what Juan had just said. And it's that -- it's very important to keep in mind that, as Ricardo said, we have the capability, yes But the idea is also to look at the flows of the economy to distribute dividends. It's something interesting to move the economy, yes. But keeping in mind that we can cover all of our solvency, we cover all of our debts and everything. I believe that these figures help us move the economy. With regard to your question on the political side of Chile and Peru. I think that overall in Latin America, and in all countries, these companies -- this company has been in the market for 76 years, and we're standing for another century. So this means 2 things basically. One, we have the institutionality and we back everything. And Chile, for instance, will have a constitutional reform. And it's very similar to what we had in Colombia in 1991. And it's a constitutional reform in which our work and the regulation and our contribution as citizens in part of the state, just like in Peru, any positive movement is good for society and for the country. And we want to play a bit. And there. So there, we had a lot of knowledge, and we assessed all the institutions. And obviously, the society, the political institutions and academic sectors to make what we call an academic lobby in which we provide information for our decisions made throughout -- especially for the country, but especially for our industries, our decision is well informed technical decisions. And that's a task based on knowledge that we've mentioned so much today. And that we've done a lot with our colleagues of SURA Asset Management, and we've done it basically with Chile and Peru. Perhaps before, we've said, but clearly, if we didn't say it, let me repeat it. Those that most benefit from our systems are those that are our members. So when we saw the authorization of 10% of the savings of the people with some considerations, just like in Peru, we had empathy. And before even the regulation forced us to provide that money, we went ahead and what did we seek with that? We wanted the sustainability of the companies and the systems and that each of our employees and our members and every person receives the money. So in all of these political movements, we believe that we want the best for society. And again, I insist, we have to keep in mind, we already saw what happened in Mexico and other countries. We had the constitutional reform in 1991 in Colombia as well. So we believe that with Chile and Peru what we're doing right now is just providing the best information -- technical information that concerns us. These are very technical data that will benefit the entire population. And of course, will enable the development of the industries in which we are operating.

We have a question from Mr. Andres Soto from Santander.

My question is related to cash flow. But more related to 2022 The -- we're looking at the operating margins. And we saw the case of Bancolombia and for 2021, their cash flow is quite weak. And there's a -- we need a big recovery of Bancolombia's profits for 2022. So how do you see the activities that are most relevant for your cash flow?

Thank you, Andres, for your question. Just as in 2020, we anticipated 2021. And now we're anticipating 2022 and that landscape. Overall, when you look at the portfolios of Grupo SURA and the 5 main investments, what we see in terms of results and the budget for Grupo SURA that we don't have a good year, not as good as 2019, not as weak as 2020. But we have a good -- let's talk about an intermediate level. So it's important to mention that also that the controls of expenses are still in place? We don't have amortization of debt that's significant in 2022. It's very manageable. So I think that we have to be looking at this topic month-by-month and our expectations when we have the vaccines and the economies start to open a bit more. We start to look at different results when you look at budgets right now with so much uncertainty that we had in 2020. It's -- we're very conservative. But if possible, when the economy opens more and the vaccines are spreading more. We believe that results will be better. And so what -- we do keep in mind very much what will happen in 2022. In addition, Andres, as we mentioned before, the capital efficiency and optimal capital that we conducted is being systematically conducted as well in every one of our companies, and this is something that we will continue doing this year. Looking at our equity efficiency, making models that will allow us even to free, not only our equity but also cash flow. So you remember a couple of years ago, we had the workers' compensation in Life. So we're closely looking very responsibly at these figures. Also, the solvency margins that we mentioned are quite important above those regulatory. So when it comes to what Ricardo mentioned, we have to evaluate these to look at the cash flow for 2022 because as you say, well, it's still a year that is not normal yet. It's -- and even it's -- remember, we are focused on deleveraging. We have to make -- we have some short-term and long-term strategies in place. In our companies, we believe that the -- the operating structure that we have in the companies with this pandemic will be -- we will have more efficiencies, more access to them. And eventually, this will be reflected. And again, the deleveraging is fundamental, an option is the organic deleveraging. And also looking at the capital under management years before. So we have a holding and investment managers. We're very focused on guaranteeing cash flow, in which we said before, like with dividends, we have to look at the debt, invest, we hope and provide value for our shareholders.

Perfect. I have another question regarding the dividend that you have for this year. What are the considerations for it, the authorization to purchase stocks? How do you see the company in that sense? How can it be more attractive for shareholders?

As you said, the acquisition of stock is an option that we have that we discussed in the assembly. It's a 3-year term purchase during the entire year as we saw the liquidity movement, we were very careful with the regulations. And on using that tool, aware that the value of our stock is quite below the normal value. When it comes to the reapplication of stocks, when it comes to the dividends, the idea to -- is to look at dividends in cash. This doesn't mean that we are not going to keep in mind the repurchasing of stocks. We'll do it perhaps ahead. But the idea is to provide cash that will provide dynamics to the economy. In addition, Andres, as Ricardo said, shareholders are customers. And it's part of the work that we systematically do. And it's an opportunity to look at the yield of the company, and I believe that we've got good yields when the stock will reach its usual levels. So it's a mixture really of what we can do with piece of land. And that's why we decided to pay dividends in cash.

Next question from Ms. Steffania Mosquera from CrediCorp Capital.

I have 3 questions. The first 2 have to do with Mexico and Peru, especially Mexico. I'd like to know what the impacts you see for the reforms. And the third is a voluntary business, which for the first time, showed gains in 2017. So my question is, what type of profit levels do you see for Peru? And how do you see Mexico?

Thank you, Steffania, for your questions. Carlos Oquendo will answer -- our Vice Financial Vice President of SURA Asset Management will answer your question.