SUNU Assurances Nigeria Plc has announced that it posted a profit before taxation of N313.41 million in 2020 business year.

The firm, said the above performance, when compared to a loss before taxation of N188 million in 2019, despite the effects of COVID -19 pandemic is a remarkable achievement.

The Sunu Assurance Group Chairman, Kyari Abba Bukar, who disclosing this at the 34th Annual General Meeting (AGM) of the company held in Lagos, said Sunu, also recorded a growth in its gross written premium from N3.060 billion in 2019 to N4.209 billion in 2020.

This, he added, represented growth of N1.149 billion in value and 37.5 in percentage terms.
According to the Sunu Assurance boss, the growth was due to the group’s strategic decisions on revenue generation.

He said the net claims incurred for the group increased by 14 percent from N658 million in 2019 to N752 million in 2020.

He however said the underwriting profit grew by 38 percent from N1.189 billion in 2019 to N1.636 billion in 2020.

He attributed this 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 percent decrease when compared to 2019 figure of N1.913 billion.

He explained that the decrease was as a result of the group’s deliberate strategy to improve its operational efficiency using information technology.

“Investment income for the year amounted to N345.58 million, a decrease of 52percent over 2019 figure of N719.53 million. This was as a result of fall in investment rate on placements held with financial institutions and FGN Securities in most part of 2020 financial year when compared to 2019, “he said.

Bukhar said he was excited that the group returned to profitability during the year under review.

He disclosed that the company has proceeded with its plan to raise capital, noting that the board had in exercise of the mandate by Shareholders mandated SUNU Participations Holding SA and SUNU Assurances Vie Cote D’Ivoire SA on behalf of the company to pay-off the holders of all the JPY1,350,000,000 Zero Coupon Bonds 2026 issued by the company the sum of $7,800,000.00, representing the outstanding indebtedness owed to the Bondholders by the company as at 31st December, 2019.

He explained that upon the repayment of the debt, the total refinancing amount which was converted to equity through the allotment of ordinary shares to SUNU Participations Holding SA and SUNU Assurances Vie Cote D’Ivoire SA was agreed at N3,010,800,000.00 ($7,800,000 converted to Naira at N386/$1 using the exchange rate at I&E window at the date of the consummation of the transaction.

“The issuance of 3,010,800,000 ordinary shares of 50 kobo each at N1.00 per share by way of private placement to SUNU Participations Holding SA and SUNU Assurances Vie Cote D’Ivoire SA was completed with the regulatory approvals received from NAICOM, SEC, Federal High Court, NSE, CSCS, CAC and FRCN. The shareholders fund increased from N3.66 billion as at December 31, 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 percent of its issued share capital to be made available to the public and held by not less than three hundred (300) shareholders, ”he added.