Sunu Assurances Predicts Profit After Tax of N168.6 million in Q3 2021

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Sunu Assurances Nigeria Proposes Share Capital Reconstruction Brandspurng

Sunu Assurances Nigeria Plc has released its earnings forecasts for the third quarter of the year (Q3), ended 30 September 2021.

  • Gross Written Premium by the end of Q3 2021 is projected at N3.81 billion representing 86.79% of the full-year budget, which is expected to be greater than the premium generated in the corresponding period 2020 by 42.12% which stood at N2.68 billion.
  • Gross claims incurred relating to 2021 businesses are projected based on 5 years average loss ratio. Investment income arising from the placement with banks and fixed interest Government securities was projected at an average of 5% per annum.
  • The company expects its Net premium income to stand at N2.2 billion while it predicts that its underwriting income to be at N2.38 billion. Also, the predicted that its Net claims will be at N429.36 million. The Operating expenses saw a projection of N1.24 billion with Profit after tax projected at N168.6 million.
  • Reinsurance expenses was budgeted at 27.49% of Gross Premium Income. The projections were based on the Underwriting projected revenues on the various product lines.

Brand Spur noted that the Sunu Assurances also took into consideration the proposed increase in the capacity of the various lines of treaties in 2021 due to an increase in shareholders funds.

The underwriting expenses were projected as indicated below:

  1. Commission income was projected at 19.61% of Re-insurance expenses
  2. Commission expenses was projected at 18.56% of Gross Premium Income
  3. Net claims incurred was arrived at after taking cognizance of claims recovered from reinsurers, salvages and adjustment for
  4. outstanding claims and related recoveries
  5. Maintenance expenses was projected at 3.93% of gross premium written
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Accretion to Contingency reserve was based on 3% of Gross Premium Written.

Early in the year, Sunu Assurances announced the result of the Private Placement exercise of 3,010,800,000 ordinary shares of 50 kobos each at N1.00 per share, with respect to the Private Placement Memorandum dated Monday, January 4, 2021.