BY NKECHI NAECHE-ESEZOBOR—-SUNU Assurances Plc, a leading player in the Nigerian insurance industry, has released its financial performance for the full year ending on 31st December 2023.
According to the filling released on the floor of Nigerian Exchange Group ( NGX), the underwriter robust earnings forecast, profit or loss account information, and cash flow details, underscoring its strength and resilience in the market.
EARNING FORECAST FOR THE YEAR ENDING DECEMBER 31, 2023
ASSUMPTIONS
Gross Written Premium for the period wass projected at N7.3 billion representing 28.5% growth over N5.7 billion projected for Q3-end 2023 and 27.3% growth year-on-year.
Gross claims incurred relating to 2023 businesses were projected based on 3 years claims experience.
Investment income arising from the placement with banks and fixed interest Government securities was projected at an average of 6.1% and 2.5% per annum respectively.
The following non cash transactions were included in the Statement of Profit or Loss and Other Comprehensive Income
*Provision for Depreciation in line with the Company’s depreciation policy
*Amortization of investment in Equity Resort Hotel based on the remaining concession year
*Amortization of intangible assets
*Impairment on placement and treasury bills
Reinsurance expenses was budgeted at 32.27% of Gross Premium Income. The projections were based on the Underwriting projected revenues on the various product lines. We also took into consideration of increase in the capacity of various lines of treaties in 2023 due to increase in shareholders funds.
Underwriting expenses were projected as indicated below:
*Commission income was projected at 13.97% of Re-insurance expenses
*Commission expenses was projected at 17.23% of Gross premium income
*Net claims incurred was arrived at after taking cognizance of claims recovered from reinsurers, salvages and adjustment fo outstanding claims and related recoveries.
*Maintenance expenses was projected at 4.05% of gross premium writtenAccretion
Accretion to Contingency reserve was based on 3% of Gross Premium Written
