Grupo Security sees profits up 15% in 2011, approves US$200mn capital increase

Thursday, March 24, 2011

Chilean financial services holding Grupo Security is expecting to increase its bottom line by 15% this year on the back of expected good performance of all its subsidiaries, group CEO Renato Peñafiel said in a press release.

Grupo Security saw 2010 profits rise 36% to a record 40.9bn pesos (US$84.9mn), mainly thanks to the strong performance of the group's main asset, Banco Security, and life insurer Vida Security.

Earlier this week, shareholders approved a US$200mn capital increase by issuing 450mn new shares.

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The fresh capital will go to strengthen its subsidiaries to support their expansion over the next three years and maintain Banco Security's capital adequacy ratio at least at 13%, the group said in a press release.

Banco Security and the group's factoring unit are expected to grow loans by 18% and 20% this year, respectively.

The group sees Vida Security increasing premiums by 25% in 2011 and its mutual funds' assets under management growing 20%, Peñafiel said.

Shareholders also approved the distribution of a 6.5-peso per share dividend, which combined with the dividend paid out in October will equal 59% of last year's profits.

Grupo Security also operates in the P&C, insurance brokerage, real estate and travel businesses.