SUNU ASSURANCES NIGERIA : EARNINGFORCAST

SUNU ASSURANCES NIGERIA PLC

EARNINGS FORECAST

JUNE 30 2024

SUNU ASSURANCES NIGERIA PLC

EARNING FORECAST FOR THE HALF YEAR 2024

ASSUMPTIONS

1. Gross Written Premium for the half year 2024 is projected at N5.81 billion representing 67.2% growth over N3.47 billion projected for Q1 2024 and 28.7% growth over N4.51 billion generated during half year 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 22.75% 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 19.52% 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 3.01% 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 HALF YEAR ENDING 30 JUNE 2024
	₦
Insurance Revenue	4,019,516,044
Insurance Service Expenses	(1,939,994,612)
Net Expenses from Reinsurance Contract	(395,888,539)
Insurance service result	1,683,632,894
Profit from concessionary arrangement	6,000,000
Investment income	389,022,287
Net fair value gains/(loss) on financial assets	7,830,795
Other operating income	2,423,594,009
Impairment loss	3,518,368
Other operating expenses	(1,399,287,456)
Results of operating activities	3,114,310,897
Profit/(loss) before tax	3,114,310,897
Income tax	(261,437,042)
Profit/(loss) for the year	2,852,873,856

2

SUNU ASSURANCES NIGERIA PLC

CASHFLOW FORECAST

AS AT THE PERIOD ENDING 30TH JUNE 2024

Cashflow from Operating Activities	₦
Premium Received from policy holders	5,816,059,999
Reinsurance Claims Recovery	132,597,909
Commission paid	(1,180,057,578)
Reinsurance premium paid	(636,344,000)
Direct Claims paid	(1,482,596,324)
Cash paid to and on behalf of employees	(544,834,059)
Other operating cash payments	(918,547,991)
Interest & dividend received	101,555,655
Company's income tax paid	(239,625,206)
Net Cash flows from operating activities	1,048,208,406
Cash from Investing Activities
Purchase of fixed assets	(445,095,000)
Proceed from sale of fixed assets	3,568,706
(Purchase)/Redemption of investment	2,608,932,475
Net cash flows from investing activities	2,167,406,181
Cash Flow from Financing Activities
Dividend paid to shareholders
Financial Liabilities	-
Net cashflows from financing activities	-
Net increase/(decrease) in cash and cash equivalent	3,215,614,587
Cash and cash equivalent at the beginning of the year	7,608,714,337
Cash and cash equivalent at the end of the period	10,824,328,923
Cash and cash equivalent
Cash and bank balances	432,579,543
Short Term Placements	10,391,749,380
Cash and cash equivalent at the end of the period	10,824,328,923
	3