Insurance firm completes first phase of recapitalisation
By Moses Uwagbale
SUNU Assurance reports it has completed the first phase of its recapitalisation plan within the stipulated time by increasing its shareholders fund to N 6.61 billion in 2020 from N3.47 billion in 2019.
Mr Samuel Ogbodu, SUNU Managing Director/CEO disclosed this at a media briefing in Lagos on Thursday.
He said that the figure represents a 90 per cent growth after shares reconstruction and capital injection of N3.01 billion.
Ogbodu said that this was in line with the company’s strategic business transformation plan to comply with N10 billion regulatory capital requirement for the operation of general business insurance in Nigeria.
“As we are all aware of the current economic challenges faced by all sectors in Nigeria, which led to contraction in the second and third quarter Gross Domestic Product (GDP) of 2020 , SUNU Assurance has continued to grow its market share.
“The company will close the year with a premium production of at least N3.15 billion in 2020 from a premium production of N2.24 billion in 2019, which represents a 40 per cent growth.
“This is due to the restructuring initiatives and strategic business transformation carried out in recent quarters to mitigate the effect of economic challenges,’’ he said.
According to him, the firm will close the year with claims pay-out of N1.29 billion, while its underwriting profit grew to N1.22 billion in 2020 from N781 million in 2019.
The managing director said that the amount represented a growth of 56.2 per cent, which was due to improved technical efficiency in business operations.
He said the company would continue to focus on its strengths, centered on technologically different service delivery and operation.
Ogbodu said that the firm was developing in line with initiatives that would delight its customers, geared toward being a customer-centric company with firm aspirations of achieving sustained and orderly growth in future.
The CEO said that the company remained committed to its strategic objectives and core values.
“There is still much to do, and the business challenges posed by the second wave of the pandemic might present difficulties and uncertainty in 2021.
“But SUNU Assurance Nigeria will ensure continuous improvement of service delivery to insuring public and we will come out stronger while the company rounds-up the execution of its recapitalisation plans.
“We pledge to generate the value expected by our shareholders, customers and employees,’’ he said.
The National Insurance Commision (NAICOM) had directed that insurance companies pay 50 per cent of the minimum paid-up capital.
Re-insurance companies are expected to pay 60 per cent, by Dec. 31, 2020.
In the segmentation, Life Insurance business with existing minimum paid-up capital of N2 billion is expected to pay a minimum paid – up capital of N4 billion by Dec. 31, 2020 and N8 billion by Sept. 30, 2021.
General Insurance business with existing minimum paid-up capital of N3 billion is expected to pay a minimum paid-up capital of N5 billion by Dec. 31, 2020 and N10 billion by Sept. 30, 2021.
Composite Insurance business with existing minimum paid-up capital of N5 billion is expected to pay a minimum paid-up capital of N9 billion by Dec. 31. 2020 and N18 billion by Sept. 30, 2021.
Reinsurance business with existing minimum paid-up capital of N10 billion is expected to pay a minimum of N12 billion by Dec. 31, 2020 and N20 billion by Sept. 30, 2021.