SUNU Assurances Plc has projected gross written premium at N7.3 billion in its released financial performance for the full year ending December 31, 2023.
In the filling released by one of the leading players in the Nigerian insurance industry on the floor of Nigerian Exchange Group (NGX), the underwriter’s robust earnings forecast, profit or loss account information and cash flow details underscored its strength and resilience in the market.
The projected gross written premium for the period represents 28.5 percent growth over N5.7 billion projected for Q3-end of 2023 and 27.3 percent growth year-on-year.
Gross claims incurred relating to 2023 businesses were projected based on three years’ claims experience.
Investment income arising from the placement with banks and fixed interest government securities was projected at an average of 6.1 percent and 2.5 percent per annum, respectively.
Non-cash transactions included in the statement of profit or loss and other comprehensive income are “Provision for depreciation in line with the company’s depreciation policy, amortisation of investment in Equity Resort Hotel based on the remaining concession year, amortisation of intangible assets and impairment on placement and treasury bills.”
It budgeted reinsurance expenses at 32.27 percent of gross premium income as the projections were based on the underwriting projected revenues on the various product lines.
“We also took into consideration increase in the capacity of various lines of treaties in 2023 due to increase in shareholders’ funds,” the firm stated.
Also, it projected underwriting expenses as follows: “Commission income was projected at 13.97 percent of re-insurance expenses and commission expenses was projected at 17.23 percent of gross premium income.”
Similarly, the insurer projected “net claims incurred was arrived at after taking cognisance of claims recovered from reinsurers, salvages and adjustment for outstanding claims and related recoveries and maintenance expenses was projected at 4.05 percent of gross premium written accretion.”
SUNU Assurances based accretion to contingency reserve on three percent of gross premium written.
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