Grupo Security Profit Up 15.5% To Ch$36,442 Million For First Three Quarters of 2013
Ebitda rose 20.2% with respect to 2012, reaching Ch$56,299 million.
Grupo Security posted profit of Ch$36,442 million for the nine months ended September 30, 2014, 15.5% greater than the first nine months of 2012. Ebitda rose 20.2% with respect to 2012, reaching Ch$56,299 million. Grupo Security's profit for the last twelve months totals Ch$51,441 million.
The company highly diversified its revenue sources with the insurance area accounting for 35% of Grupo Security's profit from business areas as of September 2013, up from 25% as of September 2012. This diversification can be attributed to both a strong performance from Vida Security and the acquisition of the Cruz del Sur companies on June 11, 2013. Based on pro forma market share, the acquisition resulted in a market share of 9.5% in direct life insurance premiums; 6.7% in mutual funds under management and 5.5% in share volumes traded. Profit from the Cruz del Sur companies is consolidated by Grupo Security beginning in June.
The Cruz del Sur acquisition was financed with debt and capital. The preferential option period for Grupo Security's capital increase ended on July 24. Of the 377,741,395 shares offered to the company's shareholders, 301,408,069 were placed at Ch$190 per share during that period. The 76,333,326 unplaced shares were made available to the shareholders that subscribed shares during the first round prorated based on the number of shares acquired for a period of two years at the same par value of Ch$190 per share.
On September 5, 2013, Grupo Security placed UF 3 million in series K corporate bonds, which mature in 25 years with a 21-year grace period. The bonds were placed on the Santiago Stock Exchange and demand exceeded UF 4.4 million with a placement rate of 4.04%, a spread of 158 bp and a duration of 15.19 years.
Banco Security posted profit for the nine months ended September 2013 of Ch$22,877 million, down 3.9% from the prior year. This decrease is mainly attributable to increased credit risk provisions. On September 24, 2013, Grupo Security increased Banco Security's capital by Ch$30,000 million, which is the first phase of a capitalization process totaling Ch$75,000 million approved by the bank's shareholders at an extraordinary meeting on August 5, 2013. This will enable Banco Security to strengthen its capital base and solvency ratios in order to better address the challenges arising from loan growth.
Vida Security reported profit of Ch$17,361 million during the nine months ended September 2013, up 107% from September 2012. This increase was mainly in response to the two installments of Disability and Survival Insurance (SIS) awarded in 2012, in effect for two years starting July 2013. Vida Security posted total direct premiums of Ch$145,595 million as of September 2013, up 33.2% from the same period in the prior year.
Factoring Security reported YoY growth of 27% in factored receivables, which totaled Ch$206,517 million. These figures compare favorably with the industry's variation of 2.2%. This subsidiary posted profit of Ch$4,864 million, representing an increase of 43.8% over the same period in 2012.
Travel Security's contribution margin grew 10.5% for the period ended September 2013 as a result of greater sales, particularly in ground travel and insurance. The real estate subsidiary, Inmobiliaria Security, increased sales by 21.3% to Ch$15,041 million.
On October 30, 2013, Grupo Security announced that it would distribute a dividend of Ch$2.50 per share to its shareholders.