By Henry Uche
SUNU Assurances Nigeria Plc has posted a Profit Before Tax (PBT) of N488 million in the financial year 2021 from N313 million recorded in 2020.
This is coming on the heels of huge COVID-19 pandemic, #EndSARS and other claims paid by the company to individuals and corporate entities in Nigeria.
The N488 million PBT made by Sunu and its subsidiary companies, represents a 56 per cent growth when compared to the N313 million realised in 2020.
Gross Written Premium for the Group grew from N4.2billion in 2020 to N6.1billion in 2021. This represents a growth of N1.9billion in value and 46 per cent in percentage terms due to improved financial stability and sustained business relationship in the insurance market.
The total gross claims paid during 2021 increased to N2.6billion from N1.7billion in 2020 by 50 per cent largely due to claims resulting from EndSARS protest.
Speaking at the company’s Annual General Meeting (AGM) the Chairman, Mr. Kyari Abba Bukar, said the company was able to achieve this feat despite the economic challenges due to strength and resilience of the board and management.
He disclosed that the net claims expenses for the Group increased from N752 million in 2020 by 81 per cent to N1.4billion due to huge EndSARS claims while the underwriting profit grew from N1.6billion in 2020 by 34 per cent to N2. 2billion in 2021. This, he said, was due to 44. 2 per cent increase in underwriting income from N3.2 billion in 2020 to N4.7billion in 2021.
He also said that the operating expenses for 2021 amounted to N2.1billion which represents an increase of 19 per cent from N1.8billion in 2020.
He added that the investment income for the year amounted to N247 million, a decrease of 28 per cent from 2020 figure of N346 million.
The Chairman attributed this to the decline in the investible funds which was a fall out of increased cash ouflows largely related to claims payments.
Speaking on the insurance sector, he said the year under review was one of the few years in the history of the insurance business in Nigeria that was received with enthusiasm and expectations because it was expected to mark the end of Cevid19 pandemic and its attendant business disruptions.