The shareholders’ fund of Sunu Assurances Nigeria Plc has risen to N6.61 billion as at the end of 2020, having rose by N3.24 billion from N3.47 billion it was in the 2019 financial year.
This, however, puts the company in good shape to complete its recapitalisation exercise, as a general insurer, by September, 2021, having already met the 50 per cent capitalisation expected of insurers by December 31st, 2020, in the ongoing insurance industry recapitalisation exercise.
Speaking during a press conference at the company’s headquarter in Victoria Island, Lagos, at the weekend, the managing director/ CEO, Mr. Samuel Ogbodu, stated that the increase in shareholders’ fund represents a 90 per cent growth after share reconstruction and capital injection of N3.01 billion.
He noted that, in spite economic challenges, the firm has continued to grow its market share, stressing that, the firm will close the year 2020 with a premium production of at least N3.15 billion, as against closing year 2019 with premium production of N2.24 billion, which represents a growth rate of 40 per cent due to the restructuring initiatives and strategic business transformation carried out in recent quarters to mitigate the effect of economic challenges.
Ogbodu maintained that the company will close the year with claims pay-out of N1.29 billion in 2020, while its underwriting profit grew to N1.22 billion in 2020 from N781 million in 2019, presenting a growth of 56.2 per cent, which was due to improved technical efficiency in business operations.
According to him, bulk of the claims came from oil & gas and motor. He posited that, due to the firm’s prompt response to claims settlement, old and new policyholders have being flocking to the firm to underwrite their risks.
He disclosed that the firm has concluded plans to inject N3.5 billion into its kitties through right issue which will be activated by March 2021.