SUNU Assurances pay N3.28bn in claims for 2024, posts N3.87bn profit
SUNU Assurances Nigeria Plc says it paid a total of N3.28 billion in claims in the 2024 financial year.
This was disclosed by Mr Kyari Bukar, Chairman, SUNU Assurances at the 38th Annual General Meeting (AGM) of the company held on Friday in Lagos.
Bukar said that payment marked a substantial 57.8 per cent increase from the N2.08 billion paid out in 2023, adding that it underscored the company’s dedication to meeting its obligations in spite of economic challenges.
He also said that the company recorded significant growth and profitability within the period under review.
The company reported a Profit After Tax (PAT) of N3.59 billion, a remarkable performance that far exceeded the full-year budgeted profit of N377 million.
This robust financial result according to the chairman of SUNU, enabled the Board to declare a dividend of 10 kobo per share on 50 kobo ordinary shares, thereby rewarding shareholders for their confidence in the company.
He added that the company’s Gross Written Premium (GWP) for the period under review reached N13.03 billion, a significant increase from N8.16billion in 2023.
“This growth of N4.87 billion, represents a 59.6 per cent rise, also surpassing the full-year budget of N10.16 billion by an impressive 128.3 per cent,” he said.
Bukar said that the impressive revenue growth was driven by several key factors like higher business renewals, contribution to stability and expand.
Other factors he said were increase in motor insurance premium rates, expanding customer base and favorable foreign exchange movements among others.
He explained that the increase in claims payments, which grew from N2.08 billion in 2023 to N3.28 billion in 2024, was due to unfavorable claims experience in certain special risk businesses.
“The company’s net claims expenses rose to N2.6 billion in 2024, a 56.0 per cent increase from N1.7 billion in the previous year.
“The unfavorable impact of inflation and fuel price volatility contributed to a significant rise in operating expenses which reached N3.21 billion in 2024, a 37.7 per cent increase from N2.33 billion in 2023.
“This figure represents 113.3 per cent of the full year budget of N2.83 billion, reflecting the financial strain imposed by macroeconomic challenges.
“The Profit after Tax for 2024 reached N3.59 billion which significantly exceeded the full year budgeted profit of N877 million.
“This impressive performance was driven by business growth and favorable impact of the federal government forex policy compared to N2.5 billion recorded in 2023.
“This marks a substantial increase, reflecting the company’s ability to capitalise on market opportunities and optimise profitability despite economic challenges, he said,” he said.
On dividends, the chairman noted that the company’s commendable performance, led the Board to recommend a 10 kobo dividend per share for the financial year ended 2024, subject to shareholders’ approval at the AGM.
Similarly, the Managing Director of SUNU Assurances, Mr Samuel Ogbodu said that year 2024 was a year with both challenges and opportunities amid economic headwinds, currency volatility, inflationary pressures and a dynamic regulatory landscape.
Ogbodu reiterated that SUNU Assurances remained committed to its core mission of providing innovative and reliable insurance solutions to it’s growing customers’ base.
He said that in spite of the hurdles, the company delivered solid performance and achieved notable progress on several fronts.
Meanwhile, Mr Jimoh Saka a shareholder has expressed satisfaction with the AGM financial report, and lauded the company for declaring 10 kobo, while also appealing to the company to do more to achieved one naira dividend per share in the next financial year.
