Colombian banking group Grupo de Inversiones Suramericana SA plans to invest $150 million in 2018, mainly in its Latin American insurance and pension businesses, Reuters reported, citing Ricardo Jaramillo, the company's vice president for finance.
The investment will primarily go to the insurance businesses for both the group and its unit Sura Asset Management SA, Jaramillo noted.
Grupo Sura also wants to lower its debt to between 10% and 12% of its loan-to-value portfolio within two to three years from 15% currently, the executive said, adding it will not issue new bonds. "It's in our interest to reduce that leverage by a bit to generate a bit more financial flexibility," Jaramillo reportedly said.
The executive expects profit to likely increase with the new budget, though some variables like exchange rates and the state of financial markets may prove unpredictable. Grupo Sura's profit in the fourth quarter of 2017 reached 357.18 billion Colombian pesos.
Jaramillo added the group is not ruling out future acquisitions, though it will take a "selective" approach.
As of Feb. 28, US$1 was equivalent to 2,870.40 Colombian pesos.
