SUNU Assurances Delivers N3.87bn Profit, Pays N3.28bn in Claims Amid Economic Headwinds

SUNU Assurances Nigeria Plc is proving that resilience, smart underwriting, and disciplined strategy can still drive shareholder value—even in turbulent macroeconomic conditions. The company, at its 38th Annual General Meeting (AGM) held in Lagos, reported a stellar financial year performance, paying N3.28 billion in claims while posting a Profit After Tax (PAT) of N3.87 billion, an impressive leap from its 2023 result.

Speaking at the AGM, Chairman Mr. Kyari Bukar framed the result as a testament to the company’s financial integrity, customer-centricity, and operational prudence. SUNU’s strong payout ratio—representing a 57.8% increase in claims disbursed year-on-year—highlights the insurer’s unwavering commitment to meeting policyholder obligations even amid inflationary pressures and forex volatility.

From Policy Payouts to Profitability: The Numbers Behind SUNU’s 2024 Success

SUNU’s 2024 performance is anchored on three strategic pillars: business expansion, product optimisation, and prudent capital deployment.

• Gross Written Premium (GWP) climbed to N13.03 billion, up from N8.16 billion in 2023, representing a 59.6% growth and surpassing its full-year budget by a whopping 128.3%.
  
• Profit After Tax surged to N3.59 billion, eclipsing the forecasted N877 million by more than 300%, and marking a substantial increase from the N2.5 billion posted in 2023.
  
• Claims Paid increased to N3.28 billion, up from N2.08 billion, driven primarily by heightened risk exposures in motor and special risk portfolios.
  
• Operating Expenses rose to N3.21 billion, reflecting the impact of fuel price hikes, inflationary inputs, and increased compliance costs within Nigeria’s evolving insurance regulatory environment.
  

Macroeconomics, Renewals & FX Wins: What’s Driving the Growth?

According to Bukar, the company benefited from multiple tailwinds, including:

• Higher business renewals and policy conversion rates across retail and corporate lines.
  
• Favourable exchange rate movements, which enhanced the company’s investment returns and underwriting margins.
  
• Revised motor insurance tariffs, which contributed to premium growth and better risk-pricing.
  

But it wasn’t all upside. The company reported a 56% rise in net claims expense, pointing to pressure from volatile risk exposures in specific sectors—especially those impacted by currency and commodity price shocks.

Still, the strategic response from SUNU has been proactive—tightening risk selection, strengthening reserves, and leveraging digital channels to drive operational efficiencies and deeper customer engagement.

Dividend Confidence: 10 Kobo Declared, Bigger Payouts Eyed

SUNU’s board declared a dividend of 10 kobo per 50 kobo ordinary share, reflecting not only the strong bottom-line performance but also growing confidence in the insurer’s cash flow outlook and capital buffers.

Shareholders welcomed the gesture, with one investor, Mr. Jimoh Saka, commending the board for “rewarding loyalty,” while urging the management team to target N1 dividend per share in subsequent fiscal years—a goal that seems plausible if growth trends are sustained.

Strategic Outlook: From Stability to Scale

Managing Director Mr. Samuel Ogbodu highlighted that despite regulatory tightening, inflation, and FX unpredictability, SUNU remained focused on scaling its innovative product suite, expanding market share, and enhancing claims responsiveness.

“Our mission remains consistent: to offer dependable insurance solutions tailored to the evolving needs of our clients. We’re building not just a profitable business, but a brand anchored in trust and innovation,” Ogbodu stated.

BRANDECONOMY Insight: A Mid-Tier Insurer Punching Above Its Weight

SUNU Assurances’ 2024 performance cements its reputation as a high-performing challenger brand in Nigeria’s insurance landscape. With macro uncertainty still looming, its ability to pay out rising claims while improving profitability signals a robust balance sheet, prudent underwriting strategy, and investor-aligned management.

For discerning investors and stakeholders in the financial services ecosystem, SUNU’s trajectory offers a compelling case for measured optimism in Nigeria’s insurance sector—especially for firms leaning into risk intelligence, digital innovation, and regulatory agility.

Bottom line?
SUNU Assurances isn’t just surviving the storm. It’s growing through it—and paying dividends on trust.