SUNU Assurances Pays 5k Dividend, N2.08bn Claims in 2023
SUNU Assurances Nigeria Plc says it paid N2.08 billion as claims in the 2023 financial year.
This represents 41.5 per cent increase from N1.47 billion disbursed in 2022.
Mr Kyari Bukar, Chairman, SUNU Assurance Nigeria Plc, said this in a statement on Monday in Lagos.
The News Agency reports that this is part of the highlights of the outcome of the firm’s 37th Annual General Meeting (AGM).
Bukar stated that the underwriting firm also approved 5k dividends per share of 50k ordinary shares for its shareholders.
He added that the insurance company posted a profit after tax of N2.5 billion, which outperforms the full-year budgeted PAT of N355 million.
According to him, the underwriter recorded a Gross Written Premium (GWP) of N8.16 billion in the year under review from N5.77 billion in 2022.
This 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.
Bukar stated that increased business proportion on renewals and, favourable impact of premium rates on fire and motor businesses were the major contributors to the company’s increased revenue.
“We were able to reach another milestone of premium generation, the highest since the inception of the company.
“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,” he said.
Bukar said that the unfavourable impact of inflation and fuel price instability led to a surge in the operating expenses of N2.33 billion in 2023, an increase of 39.4 per cent from N1.67 billion in year 2022.
He explained that this represented 111 per cent of the full-year budget of N2.11 billion.
The chairman revealed that the underwriting profit of the underwriter for the year was N1.83 billion.
According to him, this translates to 87.1 per cent of the N2.1 billion budget for the year under review and an increase of 44.8 per cent from N1.56 billion posted in 2022.
Bukar hinted that the insurance company recorded the profit for the year under review due to growing profitable business and favourable claims position.
Others, he noted included the impact of the foreign exchange policy adopted by the Federal Government in June 2023.
He stated that this added an exchange gain of N2.31 billion to the firm’s profit compared to the N398 million profit recorded in 2022.
“The economic impact of government reforms and other related economic factors as well as the market events on SUNU Assurances Nigeria Plc’s business manifested in the growth of premium income.
“This is largely from businesses denominated in foreign currencies and its resultant sharp rising operating costs,” he said.
Also, the Managing Director of SUNU Assurances, Mr Samuel Ogbodu, described the company’s 2023 financial result as impressive.
Ogbodo said the insurer was projecting to recapitalise the company above N25 billion or whatever amount the National Insurance Commission (NACOM) requires.
“Basically, we are working on having over N50 billion in the next five years.
“When a company recapitalise up to this amount, the management is expected to sweat out the capital heavily by two or three times.
“So, we are looking beyond N25 billion value. We are looking at N50 billion in the next five years.
“We have had good investments that have yielded positive returns, and this has enabled us to pay our claims.
“We believe we are in business to pay genuine claims and we will continue to do more,” he said.
According to him, any company that does not pay claims will not survive so the insurer has developed a strategy of prompt claims payment to penetrate the market.
The managing director disclosed that the insurer also pays borderline claims just to make its customers happy and retain them too.
