Sunu Assurance Nigeria Plc yesterday projected a 26.97 per cent growth in gross written premium for the second quarter ending June 30 2022 at N3.8 billion against the N3 billion in 2021.
According to the notice sent to the Exchange, Gross claims incurred relating to 2022 businesses were projected based on five years claims experience.
The investment income arising from placement with banks, treasury bills and fixed interest Government securities was projected at an average of 5.6 per cent, 6.1 per cent and 7.8 per cent per annum respectively.
However, the notice reflected some non-cash transactions as included in the Statement of Profit or Loss and Other Comprehensive Income. Provision for Depreciation in line with the Company’s depreciation policy, amortization of investment in Equity Resort Hotel based on the remaining concession year, amortization of intangible assets and impairment on placement and treasury bills.
Reinsurance expenses were budgeted at 30.99 per cent of Gross Premium Income. The projections were based on the Underwriting projected revenues on the various product lines.
The company said it also took into consideration of the proposed increase in the capacity of the various lines of treaties in 2022 due to increase in shareholders’ funds.
The underwriting expenses were projected which included the commission income was projected at 22.62 per cent of Re-insurance expenses, commission expenses was projected at 21.80 per cent of Gross Premium Income, net claims incurred was arrived at after taking cognizance of claims recovered from reinsurers, salvages and adjustment for outstanding claims and related recoveries while the maintenance expenses was projected at 2.98 per cent of gross premium written.
Accretion to Contingency reserve was based on three percent of Gross Premium Written while the projected profit after tax stood at N174.217 million.
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