SUNU Assurances pays N2.08bn in claims

SUNU Assurances Nigeria Plc said it has paid ₦2.08 billion to customers claims payment in the 2023 financial year, representing a 41.5 per cent increase from N1.47 billion received in 2022. The underwriting firm also approved 5 kobo dividends per share of 50k ordinary shares for the shareholders. The firm posted a Profit After Tax […]

SUNU Assurances Nigeria Plc said it has paid ₦2.08 billion to customers claims payment in the 2023 financial year, representing a 41.5 per cent increase from N1.47 billion received in 2022.

The underwriting firm also approved 5 kobo dividends per share of 50k ordinary shares for the shareholders.

The firm posted a Profit After Tax (PAT) of N2.5 billion outperforming the full year budgeted 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 represents 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, favourable impact of premium rates on fire and motor businesses were the major contributors to the increase in revenue.

He said: “We were able to reach another milestone of premium generation, the highest since inception of the company with a Gross Written Premium of N8.16 billion in the year under review 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 which represented 87.1 per cent of the paid claims budget for the year. This is partly due to 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 the operating expenses of N2.33 billion in 2023, by 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 Managing Director/CEO, SUNU Assurances, Samuel Ogbodu, on his part said the company’s 2023 result has been considered very impressive.

He also said they are projecting to recapitalise the company above N25 billion or whatever amount our regulator, the National Insurance Commission (NACOM) requires.