Grupo Security S A : ends 2021 with progress on its digital plan, consolidated investments in Peru and a modernized business model

Grupo Security reported strong results of MCH$88,603

The year 2021 was very positive for Grupo Security and its subsidiaries. During the period, the company reported significant earnings from its businesses, in addition to making progress on implementing its digital strategy and the business models it has been working on since 2019.

Milestones during the period include headway on its digital plan with advisory services from international experts. As part of this plan, Grupo Security purchased a stake in Monument Bank, a banking entity with a license to operate from the Bank of England that offers a 100% digital experience; it also formed an alliance with Mercado Pago through which Banco Security is Mercado Pago's sponsor for electronic transfer services and it partnered with several Fintechs to offer new products at Vida Security.

Inversiones Security, meanwhile, was named the best mutual fund manager for institutional investors and also for small investors, in the retail segment.

In the international business area, Protecta Security has consolidated its results thanks to improved investment income and a rise in direct premiums written, which have grown on average 26% per year since being acquired. As of December, the company had market share of 22.0% in annuities and 16.2% in private annuities.

Similarly, the Group was honored with several important awards such as first place in the ranking of Best Workplaces for Women from Great Place to Work and in the general ranking for companies with more than one thousand employees. It also received an award from Merco Talento, which recognizes companies that promote talent retention among their workers.

In other news, Grupo Security began a share buyback program in September. To date, the company has acquired 46,993,359 shares, equivalent to 1.16% of its subscribed and paid-in shares.

As of year-end 2021, Grupo Security had profit of MCH $88,603, as reported to the Financial Market Commission (CMF). This result, up 36% from 2020, also reflects the cost-cutting efforts initiated in 2020 and continued in 2021, with a YoY reduction of 3.6% in administrative and personnel expenses across Grupo Security and all its companies.

Subsidiary results demonstrated how well they are recuperating from the impact of the pandemic. Particularly worth highlighting was Vida Security, with profit of MCH $45,496 and premiums of MCH $329,921 as of December 2021 (+43.8% YoY), with market share of 7.3% in annuities. In addition, Fitch Ratings upgraded Vida Security's risk rating from AA- to AA. Meanwhile, Banco Security reported consolidated results of MCH $77,127, an increase of 28% from 2020, with an efficiency ratio of 44.1%-the lowest in the last 10 years-and 8.1% growth in total loans.

Also deserving mention is Travel Security's recovery after adjusting its business model, posting profit of MCH $832 to reverse the loss of MCH $4,742 from 2020.