SUNU ASSURANCES NIGERIA : EARNINGFORCAST

SUNU ASSURANCES NIGERIA PLC

EARNINGS FORECAST

SEPTEMBER 30 2024

SUNU ASSURANCES NIGERIA PLC

EARNING FORECAST FOR THE PERIOD ENDING SEPTEMBER 30 2024

ASSUMPTIONS

1. Gross Written Premium for the period ending 30 September 2024 is projected at N9.71 billion representing 67.2% growth over N5.81 billion projected for the half year 2024 and 53.5% growth over N6.32 billion generated during the corresponding period in 2023.
2. Gross claims incurred relating to businesses of 2024 underwriting year was projected based on 5 years claims experience.
3. Investment income arising from the placement with banks, treasury bills and statutory deposits with central bank was projected at an average rate on investment of 8.5%, 7.4% and 6.9% per annum respectively, in line with the upward revision of the MPR by the CBN from 18.75% p.a to 26.25% p.a.
4. The following non cash transactions were included in the Statement of Profit or Loss and Other Comprehensive Income
5. • 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
6. The underwriting expenses were projected as indicated below:
7. 1. Commission expenses was projected at 19.25% of Gross Premium Income
   2. Net claims incurred was arrived at after taking cognizance of claims recovered from reinsurers, salvages and adjustment for outstanding claims and related recoveries
   3. Maintenance expenses was projected at 2.67% of gross premium written
8. Accretion to Contingency reserve was based on 3% of Gross Premium Written

1

SUNU ASSURANCES NIGERIA PLC
EARNING FORECAST
FOR THE PERIOD ENDING SEPTEMBER 30 2024
	₦
Insurance Revenue	7,774,758,597
Insurance Service Expenses	(3,202,283,948)
Net Expenses from Reinsurance Contract	(1,773,255,565)
Insurance service result	2,799,219,083
Profit from concessionary arrangement	12,538,000
Investment income	776,505,228
Net fair value gains/(loss) on financial assets	27,304,000
Other operating income	1,586,950,713
Impairment loss	(15,202,524)
Operating expenses	(2,101,163,419)
Results of operating activities	3,086,151,082
Profit/(loss) before tax	3,086,151,082
Income tax	(449,760,111)
Profit/(loss) for the year	2,636,390,971

2

SUNU ASSURANCES NIGERIA PLC

CASHFLOW FORECAST

AS AT THE PERIOD ENDING SEPTEMBER 30 2024

Cashflow from Operating Activities	₦
Premium Received from policy holders	9,395,965,449
Reinsurance Claims Recovery	651,143,813
Commission paid	(1,702,532,062)
Reinsurance premium paid	(916,730,000)
Direct Claims paid	(1,406,304,632)
Cash paid to and on behalf of employees	(800,694,602)
Other operating cash payments	(1,220,408,890)
Interest & dividend received	120,885,438
Company's income tax paid	(51,665,000)
Net Cash flows from operating activities	4,069,659,515
Cash from Investing Activities
Purchase of fixed assets	(627,733,000)
Proceed from sale of fixed assets	5,312,500
(Purchase)/Redemption of investment	1,293,532,500
Net cash flows from investing activities	671,112,000
Cash Flow from Financing Activities
Dividend paid to shareholders	(290,540,000)
Financial Liabilities	-
Net cashflows from financing activities	(290,540,000)
Net increase/(decrease) in cash and cash equivalent	4,450,231,514
Cash and cash equivalent at the beginning of the year	7,753,247,847
Cash and cash equivalent at the end of the period	12,203,479,361
Cash and cash equivalent
Cash and bank balances	1,433,635,549
Short Term Placements	10,769,843,812
Cash and cash equivalent at the end of the period	12,203,479,361
	3