Grupo de Inversiones Suramericana S A : 2023 Q4 Earnings Report

EARNINGS REPORT

Q4 2023

Grupo de Inversiones Suramericana S.A.

Medellín, Colombia. Cra. 43A #5A -113

Grupo SURA's current outstanding securities

Fixed income:

Issuance and Placement Program for Ordinary Bonds and Commercial Papers: carrying a global quota of COP 4.3 trillion, of which a total of COP 2.3 trillion has been placed in 3 ordinary bond issued for COP 750,000 million, COP 550,000 million and COP 1 trillion respectively. These securities are listed on the Colombian Stock Exchange (BVC) and are traded on the MEC system, hosted by the BVC.

Ordinary bonds: for an authorized amount of COP 250,000 million, which were fully placed. These securities are listed on the Colombian Stock Exchange (BVC) and are traded on the system MEC, hosted by the BVC.

Bonds issued under Reg S/144A: for an authorized and issued amount of USD 550 million, fully placed USD 20 million, were repurchased during 2022. These securities are listed on the Luxembourg Stock Exchange and traded on the EURO MTF market.

Shares: The Company's authorized capital came to 600,000,000 shares and a subscribed capital of

581,977,548 shares, for a total of 18,022,452 shares in reserve.

Ordinary shares: A total of 469,037,260 shares have been issued, of which 2,316,558 have been repurchased, for a total of 466,720,702 shares outstanding. These securities are listed on the Colombian Stock Exchange (BVC) and are traded on the system hosted by the BVC.

This share is registered with an ADR (American Depositary Receipts) Level I program representing common stock and are traded in the U.S. on the over the counter (OTC) market. Finally, the Company's shares are also traded on the Foreign Securities Market (MVE) hosted by the Santiago Stock Exchange (BCS).

Preferred shares: carrying dividend and non-voting rights, for an approved amount of 120,000,000 shares, of which 112,940,288 have been issued and 432,115 repurchased, for a total of 112,508,173 shares outstanding. These securities are listed on the Colombian Stock Exchange (BVC) and are traded on the system hosted by the BVC.

These are registered with an ADR (American Depositary Receipts) Level I program representing shares carrying preferred dividend and non-voting rights that are traded on the over the counter (OTC) market in the United States. Finally, these shares are also traded on the Foreign Securities Market (MVE) hosted by the Santiago Stock Exchange (BCS).

- 2 -

Table of contents
GLOSSARY	4
MANAGEMENT ANALYSIS	7
Grupo SURA's consolidated financial statements	7
Suramericana	12
SURA Asset Management	19
Grupo SURA's Individual Financial Statements	27
CHANGES IN OUR SUSTAINABILITY CRITERIA	29
Environmental criteria	29
Social criteria	29
Corporate Governance criteria	29
CONSOLIDATED FINANCIAL STATEMENTS	33
Events subsequent to the publication date of the Consolidated Financial Statements	47
INDIVIDUAL FINANCIAL STATEMENTS	49
Events subsequent to the publication date of the Individual Financial Statements	65
APPENDICES MANAGEMENT ANALYSIS	67
Proforma Income Statement SURA AM	67

- 3 -

Glossary

To a proper understanding of this document, the terms defined below will have the meaning attributed to them here.

• Acquisition expense: the expense incurred with selling and issuing insurance policies.
• AFP: Pension fund manager.
• Alpha: refers to the measure of mutual fund performance or a set or portfolio investments compared to a benchmark index or a market in general, after adjusting for the risk assumed.
• ARL: Occupational Health and Safety.
• Asset Allocation: refers to the strategy of capital allocation among various asset classes, such as stocks, bonds, alternative investments and cash, for the purpose of optimizing returns and managing the risks of an investment portfolio.
• AuM: Assets under Management

AuM - Mandatory Pension Business Assets under Management corresponding to the Mandatory Pension Fund Business.

AuM - Voluntary Savings Business Assets under Management corresponding to the Voluntary Savings segment.

• Bps: basic points.
• Classification at fair value: instruments whose book value varies based on market values provided by official price vendors (market rates). Changes in these book values are shown in the financial statements of our subsidiaries. In the case of Suramericana and its subsidiaries, this classification includes debt instruments held for trading purposes and all equity instruments and derivatives.
• Constant currency rates: refers to the use of fixed exchange rates in order to eliminate possible currency fluctuations when consolidating the financial results of the different subsidiaries.
• Contribution percentage rate: percentage of the wage paid into the pension accounts (managed by both private and government-sponsored pension fund management firms), of both new and current pension members.
• Contribution rate: proportion of contributors compared to overall members.
• Contributor: refers to a person who makes regular financial contributions to the pension system. (Note that the criteria for ceasing to be contributors vary from country to country).
• • 4 -

• CPU: The Capitation Payment Unit is the value payable to the Health Promoting Entities for each of the members of the social security health system to cover the benefits of the Mandatory Health Plan in the contributory and subsidized regimes.
• EPS: Health Care Promoting Entity whose function is to manage and guarantee the provision of services corresponding to the mandatory health care plan.
• Equity method: accounting procedure used to recognize the investment in an associate or affiliate in which a significant influence is held.
• Exposed mass: the number of members exposed to risk during a given period.
• Individual Account: workers' investment account where pension contributions are deposited. These are managed by the pension fund management firms (AFPs / AFORE).
• Insurance mandates: are Assets under Management from insurance companies.
• Investment income: shows the returns obtained from the investment portfolio.
• Issued premiums: showing the price of issued insurance policies.
• Legal Reserves: the obligation on the part of institutions that manage pension funds in some Latin American countries to invest using their own resources a certain percentage of the AUM they manage for their members.
• Mandatory Contributions: The amount of AUM resulting from mandatory contributions made by members of the pension system.
• Health or Pension system members: refers to people who are registered or enrolled in health or pension system.
• Miscellaneous expense: other income/expense obtained from or incurred with the insurance operation, such as the costs of non-proportional contracts, assistance, contributions, insurability assessments, sales taxes, among others.
• Net Fund Flow: the difference between AUM inflows and outflows over a stipulated period of time, taking into account new members and/or transfers.
• Operating model: defines the manner in which human talent, technology and processes interact with each other to achieve the Company's operating and strategic objectives.
• Pension annulments: Provision created in 2021 aimed at attending the active ordinary processes, in which the judge orders the pension fund management firm to transfer the fund member to Colpensiones accompanied by his/her individual account plus the commission charged for managing such.
• • 5 -

• Pension Insurance: This insurance guarantees the payment of a pension to the fund member in the case of partial or total disability, or in case of death if there are legal beneficiaries. This benefit is granted provided that the corresponding disability and/or death are the result of an illness or accident that is not related to the individual´s work. Eligibility for this benefit will depend on the applicable laws in each country, but generally a minimum of contributions are required during the accumulation phase before the event occurs.
• Proforma Variations: these refer to administrative calculations aimed at making the financial performance of 2023 and 2022 comparable by presenting the previous year's figures by consolidating AFP Protección's and AFP Crecer's Income Statements line by line.
• Replacement Rate: percentage of the last wage or salary earned by an individual that is replaced by a monthly pension allowance when they retire.
• Retained earned premiums (REP): net earned value net of ceded premiums and technical reserves.
• Retained claims: represents the claims borne by the Company after deducting the proportion corresponding to the reinsurer.
• Retention rate: this measures the proportion of written premiums that are ceded to the reinsurer (retained premiums/written premiums).
• Technical contributions: refers to the percentage of the insurance rate that is transferred to regulatory entities.
• Technical reserves: balance recognized in the Statements of Financial Position to reflect the obligations (both long-term and short-term) acquired by the insurance operation. This group includes unearned premium reserves (also known as production reserves) and loss reserves.
• Technical result: refers to the operating earnings of the insurance business. This includes the income and expense obtained from insurance and reinsurance activities.
• Total insurance margin: the net result of retained premium income, expense associated with the payment of claims, movements in technical reserves, financial returns obtained from reserves, and direct insurance expense.
• Wage Base: refers to the amount of wages on which the mandatory pension fund contributions are calculated in the case of both employers and employees.
• Yield: is a measure of the annualized return or yield produced by an investment.
• • 6 -

Management Analysis

Grupo SURA's consolidated financial statements

								Adjusted Controlling
					Operating earnings
	Total revenues						Net Income	1
					COP 4.6 trillion
	COP 35.5 trillion				COP 2.3 trillion
1					+ 25.5% vs Dec 2022
+ 21.7% vs Dec 2022				+ 11.7% vs Dec 2022

Certain non-recurring effects occurred last year such as (i) having consolidated the pension fund management firm, AFP Protección, as a subsidiary of SURA AM2 ; (ii) the impact of deferred tax on the Nutresa transaction; (iii) having reclassified the Company´s investment in Nutresa to non-current assets available for sale; (iv) the sale of Suramericana´s insurance operations in Argentina and El Salvador and (v) the agreement with Grupo Bolivar to acquire a further 9.74% stake in SURA Asset Management for COP 1.6 trillion3 which affected the basis of comparison for the figures corresponding to the fourth quarter of 2023, this compared to previous periods. Therefore, in order to provide a better understanding of the Company's business performance, we shall present certain pro forma figures, which were calculated based on administrative data.

On the other hand, currency conversions for the P&L accounts were carried out using the average exchange rate, which for the quarter came to COP 4,325. During this period, the Colombian peso underwent a depreciation compared to other currencies. However, in the case of the balance sheet accounts, currency conversions were carried out based on the closing exchange rate, which at the end of the year showed an appreciation of the Colombian peso which closed at COP 3,822. This produced positive variations with the

1 Excluding the value of deferred tax on the sale of the Nutresa investment, this amounting to COP 543,724 million at year-end, the valuation of derivatives hedging the price of the tender offer in the amount of COP 44,637 million, the pro forma revenues via the equity method corresponding to Nutresa for COP 93,216 million and the impact of the sale of the insurance operations in Argentina and El Salvador for COP 96,840 million.

2 Protección S.A. only began to be consolidated in December 2022, whereas for 2023, the full year´s figures were consolidated.

3 This share purchase shall be paid in three installments; the first corresponding to 40% of the total, which was carried out upon signing this agreement, and the remaining two shall be paid in May and November 2024 in the amount of 30% each.

- 7 -

P&L accounts compared to the previous year, while the balance sheet accounts show declines compared to 2022.

• Total revenues amounted to COP 9.0 trillion for a FY growth of 6.9% compared to the fourth quarter the previous year. Revenues continued on an uptrend due to the growth in retained earned premiums as well as the higher fee and commission income. For this past quarter, written premiums fell by 24.6% with net retained premiums declining by 27.4%, mainly due to a non-recurring sale of premiums on the part of Asulado which was incorporated in December 2022; this offset by higher net production reserves. This increase in reserves, which partially normalized retained earned premiums, led to growths of 5.0% for the fourth quarter.
  Fee and commission income also boosted our bottom line, this reaching COP 1.2 trillion for this past fourth quarter, up by 3.3% compared to the same period the previous year, this due to the effects of having consolidated Protección S.A., as well as higher assets under management and a higher wage base corresponding to SURA AM´s Savings and Retirement line of business.
  Thus, at the end of the year, revenues reached COP 35.5 trillion and grew 21.7% in the year-to-date. Thanks to the positive dynamics in premiums, which reached COP 31.5 trillion and increased 6.1% compared to December 2022, as well as the good performance of fee and commission income, which grew 38.2% for the full year.
• Investment income rose by 81.2% to COP 1.5 trillion for the quarter and COP 4.7 trillion at year-end, for an increase of 174.9% for the full year. In the case of Suramericana, investment income was favored by its exposure to inflation in Colombia, as well as by the portfolios appraised at market value, which benefited from the fall in rates especially in Chile and Mexico. On the other hand, SURA
  AM's legal reserves performed well throughout the year providing a yield of 10.2% compared to the negative result obtained the previous year, thereby reflecting the uptrend seen on the global financial markets.
• Revenues obtained via the equity method reached COP 310,901 million for drops of 34.2% for the quarter and 12.1% for the full year, to close at COP 1.8 trillion, due to having excluded the former investment in Grupo Nutresa from this account as of the second half of 2023; however, Nutresa was at COP 137,928 million for the full year. As for Bancolombia, revenues via the equity method fell by 11.9% with respect to the same quarter the previous year and 9.8% for the full year, due to the impact of lower economic dynamics, the effect of interest rate levels on lending together with the cost of credit. Likewise, revenues obtained via the equity method from Grupo Argos declined for the quarter due to the effects of having divested its assets in Panama and Costa Rica through its subsidiary Celsia in Central America; however, they did increase by 116.2% on a full year basis mainly due to the positive levels of performance on the part of the cement and real estate lines of business and the different strategies that this Company has been implementing, such as the sale of the stake formerly held in in OPAIN (30%) to Macquarie.
• Retained claims increased by 16.4% compared to the fourth quarter the previous year, reaching COP
  4.6 trillion, mainly due to having set up higher reserves to cover greater longevity risks. At year-end, retained claims reached COP 18.4 trillion, for an increase of 21.9%, which in addition to the aforementioned factor were also due to higher claims frequencies and severity on the part of the EPS Health Care Provider during the year.
• • 8 -

• Operating expense amounted to COP 3.2 trillion, for an increase of 1.6% compared to the same quarter the previous year, while reaching COP 12.5 trillion for the full year, up by 20.1%, due to SURA AM having consolidated AFP Protección and AFP Crecer, as well as the variable expenses associated with the growth and performance of our companies. However, it is worth noting that the efficiency and cost control efforts on the part of our companies throughout the year helped to maintain a lower growth in expense compared with that of revenues.
• Operating earnings reached COP 1.2 trillion for this past fourth quarter, while reaching COP 4.6 trillion for the full year, for an increase of 25.5% compared to the same period the previous year, this being the highest operating earnings ever obtained in our corporate history, mainly thanks to the positive levels of performance of the Suramericana and SURA AM operations.
• Income taxes: amounted to COP 251,980 million for the quarter for an increase of 53.6%. This growth is due to higher tax payable on the dividends obtained from the SURA AM subsidiary in Chile as well in the case of Suramericana from the sale of its operations in Argentina and El Salvador. Higher tax amounting to COP 1.2 trillion for the FY is mainly due to having recognized deferred tax on the Nutresa share swap as well as the aforementioned effects at subsidiary level for the quarter.
• Controlling net income after adjusting for the non-recurring impacts relating to the Nutresa transaction and Suramericana's divestitures of its operations in Argentina and El Salvador, which amounted to COP 38,492 million for this past fourth quarter and COP 778,417 million for the full year, came to COP 444,406 million for the quarter and COP 2.3 trillion at year-end, for a growth of 16.7% and 11.7% respectively, which was in line with the originally projected by the Company, thereby reflecting the good level of operating performance and the soundness of its investment portfolio given the recurring gains. However, due to the aforementioned impacts, controlling net income for the fourth quarter reached COP 405,914 million and COP 1.5 trillion for the full year, down by 41.0% and 25.8%, respectively, compared to the same periods the previous year.

- 9 -

Key figures on a consolidated basis

Operating Expense / Revenue ratio* is calculated as total operating expense as a percentage of total revenues, this excluding investment income and revenues obtained via the equity method.

Adjusted ROE (on a trailing 12-mth basis) ** on net income given amortizations of intangibles from acquisitions and standardized reserve requirements. Grupo SURA´s shareholders´ equity does not include valuations of associates or cross-shareholdings. Adjusted ROE for 2023 takes controlling net income adjusted for the nonrecurring effects mentioned in the note below.

Adjusted controlling net income*** excludes the value of deferred tax on the sale of the Nutresa investment, this amounting to COP 543,724 million at year-end, the valuation of derivatives hedging the price of the tender offer in the amount of COP 44,637 million, the pro forma revenues via the equity method corresponding to Nutresa for COP 93,216 million and the impact of the sale of the insurance operations in Argentina and El Salvador for COP 96,840 million.

This table does not include all the line items of the Income Statement, more detailed information is provided in the Consolidated Financial Statements at the end of the document.

- 10 -