Earnings Call: Q1 2025

May 16, 2025

Summary

Q1 net profit was COP 519bn, within FY guidance, while financial affiliates contributed COP 812bn. The split advanced, but investment volatility, general insurance claims and regulatory uncertainty remain key considerations.

Good morning. As usual, we're going to have a pre-recorded meeting, then we'll show you the main quarters for the results. Then we're going to a live session where you have your questions and answers that can be answered immediately. Right now, we have Ricardo Jaramillo, the President of Grupo SURA, Juan Esteban Toro, Vice President of Corporate Finance at Grupo SURA, Juan Luis Múnera, Vice President of Corporate Legal Affairs. And our affiliates, we have Juan Fernando Uribe, Vice President of Finance and Investment in Suramericana, and Aldo Vallejo, Vice President of Corporate Finance from SURA Asset Management. Thank you. I leave you with Ricardo. Good morning, everybody. Before going to the results for the quarter, we'd like to share with you some of the most significant events. First, the decision for the absorption has had significant advances. In March, we got the approvals by the shareholders assembly and bond holders. In April, we filed the issue project before the Colombian Financial Superintendency, and this allows us to continue with the process to complete the transaction according to the times that we have estimated. As a result of these corporate approvals, the investment in Grupo Argos was reclassified as non-current assets to be distributed among the shareholders. Therefore, we do not show the results for Grupo Argos under the participation method. The statement of results do not show any type of contribution from the company. The second event that we would like to highlight is the issue of international bonds for $500 million made by SURA Asset Management. The transaction has a significant result. We have demand which was four times the amount offered, and it had the participation of more than 150 global investors. In addition, the rate was below the rate that we usually negotiate Colombian sovereign bonds. This shows the power of the diversification and the trust that the market has in the company. Let's go to the next page. We can see how with the evolution of the company and the advances in implementation of the splitting process, our results from this year will begin to reflect the future structure of Grupo SURA. This means that after we complete the split, we will consolidate a specialized portfolio for financial services with significant presence in Latin America. Over the past 12 months, the operating profits for Grupo SURA, excluding the contribution from Grupo Argos, was COP 4 billion. At this page, we can see that because of the current distribution of our portfolio, we show a contribution which is balanced both from the regional as well as sectorial outlook in different industries. Geographically, we can have more than 90% of the profits come mainly from Colombia, Chile, Mexico, and Peru. From the sector point of view, we have a balanced distribution among the financial industry, allows us to capitalize structural growth opportunities offered by the sector, especially due to the low penetration of the financial services compared to developed economies. On page 6, we will talk about the results for the first quarter for the year in Grupo SURA. During this period, we had net profits of COP 519 billion. As a reference, remember that the company plans to close the year with net profit of between COP 1.7 trillion and COP 1.8 trillion. This is why the results for the quarter are aligned with our expectations, and they are on the upper part of the range. These results reflect the sound dynamics of the business based on the performance of our investment portfolio. 2024 was marked by extraordinary events related to our actions as investor management because of the exchanges of the stocks in Nutresa and the taxes related thereto. We have shown these non-recurring events to show they reflect the variation in the performance of this year vis-à-vis the previous year. In 2024, we eliminated the participation group with the portfolio society in Grupo Argos to make the figures comparable, as well as the contribution of the EPS SURA, keeping in mind that that was no longer consolidated as of June 1, 2024. Let's start with the revenue. The operational revenue was COP 7 trillion, with a growth close to 5%, which reflects an increase in Suramericana premiums close to 6.8% and as well as the commission revenue from SURA Asset Management of 6.5%. These are offset by a decrease in the investment revenue. The operating profits for the quarter was COP 1.3 billion, a decrease by 5.6%, which is explained mainly because of a lower performance of the investments in SURA Asset Management, including the cash and the own resources of the company. The profit before taxes has the same similar levels as the previous year. During the quarter, we had an increase in the taxes given to the variation of the deferred taxes because of the repurchase of international bonds. We closed with a net profit that we mentioned, COP 519 billion, which is 12.2% lower. As a result of this profit of adjusted equity, excluding AGROS, was 9.5% for the past 12 months. I give the floor now to Juan Esteban Toro, who will go more deeply into the financial results of our investments. A very cordial reading to all those who are in this first quarter results. We will now review the performance of our financial portfolio, SURA Asset Management, Suramericana, and Bancolombia, and then we'll contribute the contribution of these companies and the various components that explain the profits that was achieved by Grupo de Inversiones Suramericana during this third quarter. Let's start with Suramericana. Suramericana showed a dynamic in the period. We had net profits of COP 204 billion, and this is 43% higher than the pro forma figures that is comparable by not including figures in the results of EPS SURA that during the first three or four quarters of 2024. We have a return on the equity of about 14%. Looking at the components, we see that the issued premiums were COP 4.5 billion, 7% vis-à-vis the constant rate of exchange. This maintains a very good dynamics in technical results. That is the contribution of the insurance business after deducting the claims, business expenses, and other miscellaneous expenses. This technical result is COP 552 billion, and it goes to 12%. This is mainly due to the lower claims and also because of the lower mixed expenses and signatures. The expenses were 5.9%, seven basis points lower than the pro forma claims. The investments increased 7.4% in the quarter due to the good performance of the alternative assets, and also because 200 basis points above the returns above the 2024 first quarter. This was driven by the life insurance segment. In the next slide, we will see the results of this segment, which showed a considerable rate of growth. The premiums are COP 2.2 trillion, 30% more in constant rate of exchange, mainly by the voluntary health products, and this can give us access to health to our clients. We have a 67.1% in the claims, lower frequency, and average cost of these voluntary health costs. This to the technical results to a positive level for the quarter. Investment revenue did grow 8.5% for COP 430 billion and reflect the good returns of the alternative results, as I just mentioned. All of this drove the result for the segment and increased 61% in profits, which reached COP 112 billion for the first quarter. The general insurance has results which are more challenging. Total premiums do not have as growth. This is due to the increase in both involuntary insurance, where the rates have gone down and had a lower number of insurance, as well as in the solution of mandatory insurance, which continued to decrease the premiums in this quarter. The business solutions have had good business dynamics, and premiums are growing to 15% compared to the first quarter of 2024. Claims are 21 basis points compared to previous year and then at 52.7%. They have gone back to levels which are about the historical levels. After we stabilize the rates, stabilization in the region. We had severe accident rates in Uruguay and Mexico. These dynamics are pushing down the profits of the segment and explain the deviation of the combined ratio for 2025. The investment revenue had a recovery compared to previous year. It grew 3% and came to COP 119 billion. Thus, the profit for the segment is COP 54 billion, with a decrease of 38%. Let's analyze the quarter of SURA Asset Management. We see some normalized standards due to the basic results of higher revenue from other investments during 2024 in the first quarter, where the revenue continued to increase but maintained the trends for growth. The management assets goes at COP 732 trillion, 11% higher than we had in March 2024. We see the dynamics of the operations in Mexico are growing at 19.5%. This is significant because the revenue in Mexico are a result of the assets under management. During the quarter, the company had revenue from commissions that were COP 4 billion, 1% more than compared to the constant rate of exchange, driven by the performance of both operating segments, to which we'll refer shortly. Vis-a-vis the expenses, we had an increase of 10%, an increase explained by the increase in sales forces in savings and retirement, the increase in provisions and the provisions and cost control. Must have told you that this level of expenses are in line with the budgets that we had presented. We have the increase to board, and we have had the increase between 5% and 6% increase in expenses. Operating profits, excluding the portfolios, as of COP 332 billion, 71 or 17% less than in 2024. As I said, this is decreases due to the base effect of other investment revenues, which had unusually high revenue during 2024 first quarter. This other revenue includes the returns from our own investments in seed capital and the investment that we support our investments in Protección. They had a higher, COP 51 billion higher. This base effect was also seen for the return in the cash, which increased 6.4% during the quarter compared to a year, which is also 12% during the same quarter in the previous year. It is important to remind that the portfolios for these valued at the market values, so they are volatile for the short term, but the broad diversification of those portfolios allows the performance not to be so important in the short term. The return of the portfolio will come back to the normal standards. We have a contribution of the various geographies. The asset manager had a net profit of COP 230 billion for the first quarter 2025, where the various factors, especially the lower increase from the cash, explained the decrease in the investment. The return on equity was 21.8%. The equity with which the company operates increased 21% for the last 12 months. It is important to point out that we hope that the normalization of expenses in the remaining quarters of the year will allow the company to go back to returns of 8%, 9%, which are showing as guidance for 2025. We keep our guidance. In this slide, we see the geographic composition of the results for SURA Asset Management. This composition was recognized by the market in the recent issue of the $500 million bond issue, which the counter rate to show the diversification of the quality of results of the company and allowed SURA Asset Management to get financing cost lower than it is the bond placement cost in the Colombian papers. As SURA Asset Management, we have some significant figures about the saving retirement sector. We had an increase of 10% at a constant rate, explained mainly because of the growth in the contributions and the good performance of the past 12 months. The commission revenue has grown about 7% at a constant rate at COP 185 billion for the first quarter of 2025. This is explained by the higher commissions under management, assets under management in Mexico, which grew at 15% and a lower rate for the commissions based on basic salary, which only grew at 3%, which had lower inflation and increase in competition in some markets. The revenue for the return of the cashes, COP 27 billion, which we see an increase in relative improvement of the resources. 75% of the assets under management was high, which is significant because we had a higher volatility of the markets during the first quarter of the year. Because of the increase in sales expenses in Mexico, together with that strategy, which is aimed at strengthening the sales force and to preserving our share participation, the operating expenses increased 9.5%. However, we would like to say that we expect a decrease in that rate of growth to end at 5% or 6% for total expenses. For this savings and retirement operating profits are COP 351 billion, a similar level to the same period during 2024. In the next slide, we see the SURA Investments segment where we consolidate our investment in cost solution plus margin. For assets under management grew 18% at a constant rate. This commercial performance also is reflected in the revenue from commissions, which grew at 19%, it is COP 107 billion for the quarter. Operating expenses grew 14% at a constant rate, explained due to the effect of an acceleration in the process and other initiatives for the beginning of the year. Because of the low expenses during the first quarter of the previous year, for this segment, is even more indication of the easement of these increases. We expect that by the end of the year, the increase in total expense for the year will be around 4%-6%. This focus commitment with efficiency is one of the pillars for our management during this segment, because we want to increase the operating margin and get closer to double-digit figures during the rest of the year. The operating profits was at COP 13 billion, an increase of 7% compared to the previous year's mix. We want to show the results from Bancolombia for the recent quarter, have shown that are stable in the ability to produce profits. Net profits ends at COP 1.7 billion for the quarter and grew at 4.5%, while the return on the equivalent equity was 14.3%. These reflects a positive dynamics in their account management at COP 279 billion, driven by the business and housing loans. The net margin for interest was remained same at 6.4%, in line with the fourth quarter of 2024. During the first quarter of 2025, the interest from loans had lower interest rates, but that was offset by lower income. It's a lower cost of funding. All of this together with an increase in the quality of the loans, which is important drivers, with the risk of the cost was 1.6% on an annual basis. Lastly, and going on to the next slide. Let's summarize the contribution of our financial contribution. Our financial companies are contributing with COP 812 billion for the results for the first quarter, 3% more than 2024. This in a lower interest rates and lower performance from investments, which are significant factors in our portfolio. Elsewhere, the respect of interest nets is at COP 303 billion. It's a little higher balance for our tech in our first quarter compared to the same quarter in the previous year. Taxes, we see taxes due to the variation in the deferred taxes for the Grupo SURA due to the early purchase of the bonds that we bought in January, $230 million, and the coverages that we had to do with that variation. The net controlling profits was COP 519 billion for Grupo SURA. This is part of the higher part of the expectations that we had for the entire year. Right now, I give the floor again to Ricardo, who will continue with the presentation. Thank you, Juan. Let's go to page 17. Since our investment is to improve the negotiation conditions for our shares so that the price of the market shows the value of the company, we're also trying to strengthen our eligibility to attract more shareholders. This has allowed us to have a better price confirmation. Between March of 2024 and April 2025, the ordinary shares has an increase of 41% in its value, and the preferred value shows 103% higher, both above the performance of the market as a rule, which increased at 23% during the same period. This behavior reflects not only the trust of the market, but also a higher visibility vis-à-vis institutional and local investors over the past nine months. The number of international funds increased from 98 to 168 funds, with 114% increase in participation. On the right-hand side of the page, you can see the evolution of the average daily volume that is traded, which has a significant increase. In 2025, this indicator comes to COP 14 trillion a day, the highest level over the years, which is much higher than the volumes between 2020 and 2024. These advances allow us to strengthen our presence in the capital market and promote higher liquidity and aligning Grupo SURA with the international standards. Going now to the next page, we want to point out the commitment of the company to make the potential of valorization of the company, make it more visible, and to continue the discount that our shares are showing vis-à-vis its basic value. By estimating the value of our financial portfolio with a conservative approximation, considering Bancolombia at market value and Suramericana and SURA Asset Management at one time the book value, we have close to COP 26.6 trillion. By including the participation in Grupo Argos at market value and discounting the unit value that the arbitration value of Grupo SURA will be COP 25.7 trillion. In addition, according to basic valuation included in the entire documentation for the split project, the value point is COP 32.5 trillion. Which is an equivalent of COP 82,000 per share. We compare these valuations with the capitalization of the company in the stock market, which is COP 86.4 trillion. You can see a discount between 36% and 50%. These analyses not only reaffirm the soundness of our businesses in our portfolio, but also support our commitment to generate value for the shareholders. We're continue moving forward in an active action stream intended to improve on the tradability of the shares, increasing the floats, and increasing the visibility in the capital markets. Let's go to page 19. We're going to show you some of the strategic priorities which guide our capital management according to an integrated and articulated approach. One, the sources and structure of the capital, then the simulation of capital, and then three, the management of that capital in the various investments. Looking at the sources and the capital structures, our approach is to make it more visible, as we saw earlier, the value of the company, and close that discounts of the shares, putting the shareholders in the midst of our decisions. We try to improve the negotiation conditions, increasing the tradability, and increasing the float. It allows us to have our shares would be more eligible in that share for a broader base of shareholders. We're also acting to reduce the debt in order to increase the flexibility of the company and to continue to drive a profitable, sustainable growth. As far the capital assignment, we're committed to addressing our assets to a capital where we can then generate value, optimizing our regional footprint. Finally, from investment management, we try to focus on the strategic development of each company in the portfolio with active diversification and try to strengthen our integrated approach. Our objective is to achieve sustainable and profitable growth. This allows us to make more efficient decisions, prioritize the strategic use of capital, and move forward to build a company which is ever increasingly sound, more profitable, and with a value proposal which is a sustainable profit for Grupo SURA and its shareholders. With this, we will give you the way to the question and answer session. Once again, good morning. Thank you for being with us. We will start the Q&A session. We will start by reading the questions. I have something about the advances of these absorption and times. Several questions, like Carlos has said, over the split project. Juan Luis, tell us how we are going to do after we have filed the approval of the assembly and the filing with the Superintendencia Financiera. Thank you. Good morning, everybody. The Superintendencia Financiera right now is studying the project or divestment that we filed. This is something that usually takes several months. This could take up to last quarter of the year or the first quarter of next year. This might require some additional information and will be, obviously, answer all their questions. As soon as we have the approval, we expect to report it to the market, and we have in about 30 days after that, we can complete the divestment. That, as the project is indicating, will suspend the transactions with the shares of the three companies, and then Argos will work, take about 3 working days, and then we would have a similar suspension. In general, this is the process. Maximiliano Arango has asked about those times for suspending the shares, and that has been answered. The next question is by Andres Uribe about Cibest. How are you going to value Cibest within Suramericana? How does that affect the results of the changes also with this project, with the pre-purchase that Bancolombia had announced. This is asking, how could the participation of Grupo SURA be in the company? What are the expectations for the company? Thank you, Andres, and thank you for the question. I might start by telling you that the organizational transformation in Bancolombia is a transformation which is neutral in accounting terms. We will change some shares in Bancolombia for some shares in Cibest, which are traded in both markets. This is from accounting point of view. It is very important to point out the attributes that the company and the shareholders are going to have to or believe are going to have a generator for value. There is the option to repurchase the shares. In other markets, especially in North American markets, you know that one of the ways to pay back to the shareholders is to give a clear signal of what the management see the potential for appreciating the shares is repurchases. That, before the purchase of the bank, they could not do it directly, but since as a holder, they can do that. It is an important point. Then we have also talked about it, this and the bankers have said, this allows to have a very major flexibility and optimization for the bank capital, which will enable the bank to unload those COP 300 million therefore repurchasing shares. If we look at that from the point of view of the future, and we said that Grupo SURA has a series of business which are directly related both with the various regional operations, including Bancolombia and other businesses which are not necessarily financial, which today the bank holds, for example, renting, which is a real estate sector, optimizes, manages capitals in different assignment alternatives. Those two items we believe that should contribute to better pricing of the share, that management will have more tools to give the proper signals to the market. That's one point. The other question to answer is how is that repurchase program going? We're designing the process of the rules about the repurchase, and we as Grupo SURA shareholders, not to say that we're totally happy, satisfied with what the investment in bank. We don't intend to sell those shares in that repurchase, and the bank will have the process of the repurchase of preferred or ordinary shares, will have its own dynamics or a new actor in that supply and demand process. We are very well here, and we don't intend to sell any shares in this process. Andres has a second question about the equity value of Grupo SURA after we complete the split. Andres, about that equity value, the intrinsic value, remember that we're going to complete the conversion to about 328 million shares. Right now, we have 395 million. So when we take the equity without including Argos, and you divide by the 328 million shares, we have an intrinsic value close to COP 59,000 per share. Perhaps we should also mention that the sum of the parts, which we had in the presentation of the results. Look at the sum of the parts, if we value it with the values of Suramericana and SURA, was close to COP 65,000 a share. If we put a little multiple or a little more to the valuation, we are between COP 85,000. So it's an intrinsic value, but there's also a basic value, which is better seen if you do a sum of the parts. The next question, if I understand, how has in the performance as the creation of Asulado? Asulado has been very positive. We stabilized the operations very quickly, and we have been transferring risk and transfer risk assignment, which is optimum in Colombia. To give you an idea of the evolution of the financial part of the business, Asulado has been commercialized since 2022. We have commercialized approximately 33,000 life annuities. We have COP 14 trillion, which allows us to medical research and equity of COP 1.2 billion. This efficient operation of this company is also important. It's one of the most efficient insurance companies with an efficient ratio of 1.5%. Santiago has another question. What is the current status of the EPS SURA, and how has that affected the results of Suramericana? What are the outlook for the future? I'll give you the floor to Juan Fernando, so they can tell us about it. We've said it elsewhere. We have a clear focus on maintaining the service to 5.3 million members, constant dialogue with the providers of the services. The company is having efficient, good services, efficient, but the profits are close to zero. It's very important right now, and I go back to the origins of when we requested the change of dismounting it. It's important to maintain the reserves over one. We always try to keep more reserves than that. We are trying to keep that match. Right now, the company has with all the energy and dedication that we've always had over the past 30 years, but it is not consolidated in our financial statements, not in Suramericana and obviously or the consolidation of Grupo SURA. Right now, these results that we're showing you do not see any impact associated, positive or negative to the company. Beyond the fact that it is consolidated, we're focused on providing the service of 5.3 billion members. The question in the future is what's next? We are paying attention to the evolution from the point of view of the government regulations. We imagine what the mandatory sales system is going to be like in Colombia. From what we know about the sector, the details of having 5.3 million members, but right now it would be irresponsible if we can imagine what that is going to be like in the medium or long term for the EPS. Also, it's important to tell you because I think this or another question, SURA is in health. We have capabilities, we have the knowledge, we have a recognized brand. We have some teams that are constantly serving both our mandatory and voluntary clients. We have a number of assets, capabilities about diagnostic aids, like VaxThera, which is our vaccine plant. We didn't have that in Colombia to produce vaccines, and it's practically ready to be approved. All the IPSs. SURA, we're still in the health, but obviously, waiting to see how the regulatory definitions evolve. No more questions there. Next question is for Gaudete. That is, the current level of claims, is it sustainable for the year? What are your forecasts for the year? Thank you for the question. Yes, we expect that it will continue with the same decrease, and we hope there will be very good indicators in the future. We have to improve, in the segment of general insurance, for the second quarter. We hope to improve our indicators. We had 57.9% claims, and we have projected 57.7%. Next question is from Jose Muñoz. Two questions. What does asset management about divestment in SURA Asset Management and Suramericana in different countries, and the company's debt? Thank you, Juan Jose. I'll start with the second question. Let's remember the guidance we have about cash flows for debt in 2025. We are not expecting an increase in our debt for this year. In fact, we should close the year very close to COP 7.7 trillion in debt in Grupo SURA. This debt level vis-à-vis the risk dividends and the recurring flows is about 3.4 times, so our debt level is pretty comfortable. We see today we closed the quarter a little below COP 7.4 trillion, but we had an important flow of dividends in April. Right now, we have a debt of less than COP 6.8 trillion, and we have long-term commitments. We paid a significant part of the taxes, our surety taxes. So we're very much aligned to follow that guideline. Very happy with the debt level. The specific conversation about the geographic debt and issue operations asset management in Suramericana is something that is constantly being done as good investment managers. Our hope is to something we do with the administrations and the boards of those affiliates, but we are not expecting any changes in that business area. Adding to what Juan mentioned, I would like to go back to the last page of the presentation where we are looking at the management folks. We remember that the first test, why we said capital assignment, which is a key point in the company's functions of the holding company functions. We are constantly looking at the appropriate capital assignment, the presence in each country. If we have an additional dollar or peso, where should we invest it? We have flows that we have seen them recurrent, which is decreasing the debt investment or paying dividends. We have to have the cash flow for that. Also, we have to see, we have said that earlier as well, we are in the owners of those operations, how we use efficiently those capitals that we have assigned in different countries. The next question is from Gabriel Pérez. Again, the performance of our cash flow should be the same as we have had so for the first quarter. Thank you for the question. The performance of our investment since SURA Asset Management, see higher level of volatility. During the first quarter of 2024, we had 7.4% below it. Our budget was 7.5%, according to the investment teams. In April, had good news. We had a significant recovery of our cash that recovers that shortfall we had in April of the entire year were 110% of what we budgeted for our cash. This is 8% rate. We are going to see some volatility surely, but we are going to fine-tune the strategies to take advantage of those opportunities. We should point out that during the first quarter, our investment teams were able to have a 75% increase in our management contributions. A couple of questions which are very apropos. We are aware of the general volatility, especially in the returns. This has an impact on capitals markets. As you said, reflection of the funds that is managed by SURA Asset Management, not only investing here, also in the world. We have volatility in the capital markets. We see volatility in our cash, in our results, in many investments, which are valid at market prices. But, this is the point that I would like to underline, however, that cash does not mean cash flow or less or low, more for SURA Asset Management, because it is a valuation of some investment that as long as we have no reduction mandatory by the regulations. If you look at the long term, we have some years higher than what the team is expecting or lower, but more or less convenient because it is a large portfolio, it goes to a perfect diversification and yields about 6% or 8%. The next question is from José Muñoz. You have not asked about what the share composition would be like after we complete the transaction of the split. Thank you, Jose. The first thing is that I have to be careful with that answer because the transaction has not become real. With the figure that we have, the decision by absorption, but we have two holding companies than in Grupo SURA. We have the shareholders, both from Cementos Argos and from Grupo Argos. That means that we are going to multiply two or more times the number of shareholders we have in Grupo SURA. Right now, we are close to 25,000 Grupo SURA shareholders. As I said, we could increase to 50 or more shareholders. We are going to have a change in the structure of the ordinary and preferred shares. Right now is 20 preferred and 80% ordinary. We are going to have a higher weight in our preferential weighting, and with the same shareholders, removing the shares from the Grupo Argos or Grupo SURA and bringing them from the other companies. In general terms, this is a balanced structure with an important flow that is clearly represented at local retail and international funds, some assets, some liabilities reflecting the movements of the indicators. We showed them earlier that those international funds have gone up. We had that 40 higher. Right now, 160, 170 international funds. There is an important point where we are working to encourage the attractions of the company for those funds. With that lot, there was a set of traditional shareholders that we have had in these companies, which is also important that bank and the AFPs in Colombia, which have significance in more than preferred and ordinary shares. That is a diversified shareholder base with a significant liquidity potential, and which is balanced in terms of the various interests and types of shareholders that gives a constant liquidity for the company. Next is from Alain Beliveau, "As we have been several years with combined ratios of more than 100% in general issues, what can we do to put that below?" We are not happy about that. We are working hard. The indicator of expenses and claims, in the aggregate, we are getting 105, and we are working. This is affected by the high level of claims, like the mandatory insurance, auto insurance. So it is a very high rate of accidents. We would like to have a lower appetite for that solution and have a lower participation in that area. Also looking at the expenses, we have two very important projects. We are looking to more efficiency at operating transformations, so it allows not only controlling expenses and to be able to improve that indicator, which I hope to drive from 105 to 100 throughout the rest of the year. Gabriel Pérez, another question. Could you give more information about the growth of the premiums in the life segment?" Gabriel says in the report, voluntary health results, what are they? Thank you, Gabriel. About that segment, life has had a very significant growth in voluntary health insurance. We have also had a significant strategy to be able to substitute that complementary plan that we had for the EPS through a voluntary plan, which has been very well-received. Now we have COP 50 billion. For this year, we have revenue from health for COP 200 billion, with a growth of 32%. That is an indication that the strategy is working. Like Ricardo was saying, let us not forget that we have the ARL, which is in that division, which is a labor part, and it has a significant impact this year. Complementing what we said earlier, we see opportunities in this health area. Because we have the knowledge in our company, we want to develop the segment further, increase the growth of our traditional segment. We would like medical tourism for providing our services to be used by populations outside of Colombia here in our facilities. We are also looking for a way to improve the rates through new affiliations that will give us good results. We have several questions about pension reforms in Colombia. How has that been implemented? What is the outlook vis-à-vis a possible decision from the Constitutional Court? What are the implications of those scenarios for business? Thank you all for the questions. This is a very important question because we have a large group of people, both in Protección and Asulado, working on what the implementation of the reforms would mean. Recently, we had a sole decree, which has a clearer definition of what this implementation could be like. The teams are analyzing the information, are trying to understand the implications, and paying attention to what the politics would have with the position of the court or the government. We do not want to have any judgments or comments about what is going to happen from the approval or the decision by the court. We are doing what we should, which is focus on being prepared with the information about the regulations that has recently been issued, what the process would be, the final implementation. What I think is more appropriate or more responsible is that as we have more clear definitions of what the regulation is going to be like, we will be telling you the impact for Asulado and Protección. Meanwhile, we are just doing the analysis because the decree has just been issued. Thank you, Ricardo. We have one last question from Sebastian here. Do you know the tax impact for the investors when they receive the shares after we finish the division? I can answer that. When we did those analysis of the project, one of the key aspects was to look at the financial impact. That split meets the budgets of the tax regulations in Colombia and has fiscal neutrality for our shares and our company, because it meets all the provisions of the tax statute. These have been the type of splits. In general, we expect that there would be a neutral in terms of taxes, but each shareholder has to look at their own, that it does not substitute for each shareholder's responsibility. I would say that those are two issues. Fiscal neutrality for the companies due to the process, and it could check the impact on the shareholders, which has to be looked at on a case-by-case basis. I have a question, one last-minute question. What are the dividends for Grupo SURA? Have you looked into the possibility of increasing the dividends, and what type would that be? That was a very dynamic conversation during the shareholders' assembly held recently. We have been increasing, significantly, the dividends. Since 2019 to today, the dividends have, from COP 150. It is almost tripled. I was thinking about them by share, from COP 150 to COP 1,500, almost tripled. The dividends has increased. However, your point is very valid, compared to other shares, it is not where we would like it to be. It is close to 3.5%. It is related to what we mentioned in the last page of what are our priorities, and there is a clear priority, which is focus on the shareholders and how we take the process step, our leverage process, step by step. We also have the study of the new investors. How do we assign capital efficiently to reward the shareholders but also meet the requirement that allows us to pay the shareholders more and also to invest more for future growth? I said earlier, we would like to have a higher yield, but we have to take the dividends, growing it responsibly to meet the entire discussions of the debt and the investments. This has completed our time. Thank you, Ricardo, for our conclusions. Thank you very much, everyone, for being connected, for the questions, and we are constantly in investor relations. We are completely open to meet with you, to go into more depth for your questions, to understand any details out of accounting, the numbers. We understand that this is a significant transformation process that could have a lot of concerns, but our idea is to be present and provide you with all the clarifications, both with the positive and challenging impacts that each decisions that we are making might have. Thank you, everybody, and we are always open to any questions.