SUNU Assurances Customers Smile to Bank as Firm Disburses N2.08bn in Claims For 2023
- A Nigerian insurance company, SUNU Assurances Nigeria Plc, has disclosed that it paid about 2.08 billion in claims in 2023
- The company disclosed that it also approved 5 kobo dividends per share of 50k ordinary shares for its shareholders
- The company’s claims payment represents a 41.5% increase from the N1.47 billion recorded in 2022
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
SUNU Assurances Nigeria Plc customers received ₦ N2.08 billion as claims payment in the 2023 financial year, representing a 41.5 per cent increase from the N1.47 billion received in 2022.
The underwriting firm also excited shareholders with remarkable growth, approving 5 kobo dividends per share for 50k ordinary shares.
Source: Original
SUNU records surge in operating costs
SUNU Assurances, one of the country's leading insurance companies, posted a Profit After Tax (PAT) of N2.5 billion, outperforming the full-year projected profit after tax of N355 million.
Besides, the company recorded a Gross Written Premium (GWP) of N8.16 billion in the year under review from N5.77 billion in 2022.
This figure represents a growth of N2.39 billion in value and 41.3 per cent in percentage terms, while the full-year budget of N6.7 billion was surpassed by 121.8 per cent.
Speaking at the 37th Annual General Meeting (AGM) of the company, the Chairman, Kyari Abba Bukar, stated that increased business proportion on renewals and the favourable impact of premium rates on fire and motor businesses were the major contributors to the increase in revenue.
He said:
“We reached another milestone of premium generation, the highest since the company's inception, with a Gross Written Premium of N8.16 billion in the year under review, up from N5.77 billion in 2022.
“Claims paid increased from N1.47 billion in 2022 to N2.08 billion in 2023 by 41.5 per cent, representing 87.1 per cent of the paid claims budget for the year. This is partly due to the unfavourable impact of macroeconomic factors, as mentioned.
“Net Claims expenses increased to N1.45 billion in 2023 by 41.4 per cent from N1.21 billion in 2022. This represented a budget overrun of N213 million above the N1.24 billion budgeted for the year due to the impact of the implementation of IFRS 17 on Insurance businesses."
Bukar pointed out that the unfavourable impact of inflation and fuel price instability led to a surge in operating expenses of N2.33 billion in 2023, an increase of 39.4 per cent from N1.67 billion in 2022. This represents 111 per cent of the full-year budget of N2.11 billion.
“The Underwriting profit for the year was N1.83 billion, which translates to 87.1 per cent of the N2.1 billion budget for the year. However, the Underwriting profit increased by 44.8 per cent from N1.56 billion in 2022.
The firm expresses readiness to recapitalise
On dividends, the Chairman said that considering the commendable performance of the Group during the period, the Directors recommended the declaration of a 5 kobo dividend per share of 50k ordinary shares of the company subject to the approval of shareholders at the AGM.
Samuel Ogbodu, SUNU Assurances' managing director/CEO, said the company’s 2023 results have been impressive.
He also said the firm is projecting to recapitalise above N25 billion or whatever amount our regulator, the National Insurance Commission (NACOM), recommends.
“We will have over N50 billion in the next five years. When a company recapitalises up to this amount, management is expected to sweat out the capital heavily two or three times. So, we are looking beyond N25billion value. We are looking at N50 billion in the next five years.
A shareholder and financial analyst, Nona Awo, commended SUNU, stating, “I salute the company for the N2.1 billion profit."
He also said the owners of the Group have built a vital institution.
“The truth is that for every organisation, there is an opportunity for you to do well. I looked forward to consistency in SUNU Assurances’ policy around building institutions instead of individuals.
Another shareholder, Mr. Eke Chibuzor, also commended SUNU for complying with the International Financial Reporting Standard (IFRS) 17.
Insurance company announces board changes
Legit.ng earlier reported that FBS Re, a fast-growing Nigerian Reinsurance company, has announced significant changes to its Board and senior management team.
The changes reflect a new chapter in its repositioning for enhanced services.
All changes have received no objections and approval from the National Insurance Commission (NAICOM).
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Source: Legit.ng
