By Rosemary Iwunze

SUNU Assurances Nigeria Plc has posted a profit before taxation of N313.41 million for the 2020 financial year from a loss before taxation of N188 million in 2019.

The Group also recorded a growth of 37.5 per cent in Gross Written Premium of N4.209 billion in 2020 from N3.060 billion in 2019.

The net claims incurred for the Group increased by 14 per cent to N752 million in 2020 from N658 million in 2019.

However, the underwriting profit grew by 38 per cent to N1.636 billion in 2020 from N1.189 billion in 2019. This was due to 34 per cent increase in total underwriting income from N2.429 billion in 2019 to N3.246 billion in 2020.

The Group operating expenses for 2020 totalled N1.846 billion, which was 3.5 per cent decrease when compared to 2019 figure of N1.913 billion. This decrease was as a result of the Group’s deliberate strategy to improve its operational efficiency using information technology.

ALSO READ: CIIN poised to deepen insurance awareness — President

The investment income for the year amounted to N345.58 million, a decrease of 52 per cent over 2019 figure of N719.53 million. This was attributed to the fall in investment rate on placements held with financial institutions and FGN Securities in most part of 2020 financial year when compared to 2019.

Chairman of the company, Kyari Abba Bukar while presenting the results to shareholders at the 34th annual general meeting in Lagos, said he is excited that the Group has returned to profitability during the year under review.

Bukar said: “The shareholders fund increased from N3.66 billion as at 31st December, 2020 to N6.67 billion as the date of the AGM.

“It is expected that the second stage of the raising of additional capital by way of Rights Issue of N3.5 billion would commence in July 2021 and would be completed by 30th September, 2021.

“I would therefore urge the minority shareholders to take advantage of the Rights Issue offer to increase their shareholding given the requirement of the free float rule of the NSE which requires the company to maintain twenty per cent (20%) of its issued share capital to be made available to the public and held by not less than three hundred (300) shareholders”, he added.

Vanguard News Nigeria