Grupo de Inversiones Suramericana S A : 2021 Q3 Consolidated financial statements

Condensed Interim Consolidated Financial Statements of Grupo de Inversiones Suramericana S.A. for the nine-month period between January 1st and September 30th 2021

	TABLE OF CONTENT
CERTIFICATION OF THE CONSOLIDATED FINANCIAL STATEMENTS ..................................	4
AUDITOR REPORT......................................................................................................................	5
CONDENSED INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION ................	7
CONDENSED INTERIM CONSOLIDATED INCOME STATEMENT.............................................	8
CONDENSED INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME.......	9
CONDENSED INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY...............	10
CONDENSED INTERIM STATEMENT CONSOLIDATED CASH FLOWS STATEMENT ..........	12
NOTE 1. REPORTING ENTITY ..................................................................................................	13
NOTE 2. BASIS OF PRESENTATION OF THE CONSOLIDATED FINANCIAL STATEMENTS
AND SIGNIFICANT ACCOUNTING POLICIES ..........................................................................	16
2.1. Statement of compliance ..............................................................................................	16
2.2. Basis of presentation ....................................................................................................	18
2.2.1 Bases of measurement and presentation.......................................................................	18
2.2.2. Principles of consolidation.............................................................................................	19
2.2.3. Reclassifications.............................................................................................................	20
2.3. Significant accounting policies ....................................................................................	24
NOTE 3. SIGNIFICANT ACCOUNTING JUDGMENTS, ESTIMATES AND SOURCES OF
UNCERTAINTY IN THE PREPARATION OF THE FINANCIAL STATEMENTS ........................	25
NOTE 4. NORMS ISSUED NOT EFFECTIVE YET.....................................................................	25
NOTE 5. COVID - 19 CRISIS RESPONSE ................................................................................	30
NOTE 6. FINANCIAL INSTRUMENTS ........................................................................................	33
6.1.	Financial assets ..........................................................................................................	33
6.2. Impairment of financial assets.....................................................................................	36
6.3. Financial liabilities............................................................................................................	36
NOTE 7. DERIVATIVE INSTRUMENTS .....................................................................................	38
7.1. Hedge derivatives ................................................................................................................	38
7.2. Trading derivatives...............................................................................................................	42
NOTE 8. INSURANCE CONTRACTS .........................................................................................	43
8.1. Insurance contract assets................................................................................................	43
8.2. Reinsurance contract assets ...........................................................................................	43
8.3. Liabilities for insurance contracts.....................................................................................	44
8.4. Reinsurance contracts liabilities.......................................................................................	45
8.5. Premiums ........................................................................................................................	45
8.6. Claims withheld ...............................................................................................................	46
8.7 Insurance costs and expenses .........................................................................................	46
NOTE 9. INCOME TAXES ..........................................................................................................	47
9.1. Applicable regulations .....................................................................................................	47
9.2	Current taxes .................................................................................................................	49
9.3 Tax recognized in the income statement for the period ..................................................	49
9.4 Effective rate reconciliation ...........................................................................................	50
9.5	Deferred taxes ...............................................................................................................	51
9.6 Uncertainty regarding income tax treatments. ................................................................	52

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NOTE 10. DEFERRED ACQUISITION COST - DAC .................................................................	53
NOTE 11. INVESTMENTS IN ASSOCIATE COMPANIES AND JOINT VENTURES ..................	53
11.1 Investment in associates.................................................................................................	54
11.2 Joint ventures .................................................................................................................	57
NOTE 12. INTANGIBLE ASSETS ...............................................................................................	59
12.1 Goodwill ..........................................................................................................................	59
12.2 Intangible Assets other than goodwill ..............................................................................	59
NOTE 13. BONDS ISSUED.........................................................................................................	61
NOTE 14. PREFERRED SHARES ..............................................................................................	62
NOTE 15. DIVIDENDS PAID AND DECLARED ..........................................................................	62
NOTE 16. RESERVES FOR SHARE REPURCHASE .................................................................	63
NOTE 17. OTHER COMPREHENSIVE INCOME........................................................................	64
NOTE 18. NON-CONTROLLING INTEREST ..............................................................................	65
NOTE 19. OPERATING SEGMENTS..........................................................................................	66
19.1. Reportable segments .....................................................................................................	66
19.2. Information about operating segments ...........................................................................	68
19.3. Geographical information ...............................................................................................	72
NOTE 20. COMMISSION INCOME AND EXPENSES.................................................................	73
20.1. Commission income.......................................................................................................	73
20.2. Expenses for commissions paid to intermediaries ..........................................................	73
NOTE 21. ADMINISTRATIVE EXPENSES..................................................................................	74
NOTE 22. FINANCIAL RESULT ..................................................................................................	74
NOTE 23. EARNINGS PER SHARE ...........................................................................................	75
NOTE 24. RISK MANAGEMENT OBJECTIVES AND POLICIES ................................................	76
NOTE 25. INFORMATION DISCLOSED ON RELATED PARTIES..............................................	85
25.1. Related parties...............................................................................................................	85
25.2. Transactions with related parties....................................................................................	86
NOTE 26. EVENTS SUBSEQUENT TO THE REPORTING DATE..............................................	86
NOTE 27. APPROVAL OF FINANCIAL STATEMENTS ..............................................................	87
ANALYSIS OF FINANCIAL RESULTS (unaudited) .....................................................................	88

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CERTIFICATION OF THE CONSOLIDATED FINANCIAL STATEMENTS

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

For the issuance of the consolidated statement of financial position as of September 30, 2021, and the consolidated statement of income for the year and consolidated comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the period ended on that date, which in accordance with the regulations are made available to shareholders and third parties, the statements contained therein have been previously verified.

Said affirmations, explicit and implicit, are the following:

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

Integrity: All economic events have been recognized.

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

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

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

In accordance with Article 46 of Law 964 of 2005, in my capacity as legal representative of Grupo de Inversiones Suramericana S.A. The Financial Statements and other relevant reports for the public, related to the fiscal year as of September 30, 2021, September 30 and December 31, 2020 do not contain vices, inaccuracies or errors that prevent the true equity situation or operations of the Company from being known.

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

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AUDITOR REPORT

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