Last Update 09 Dec 25
SUNU Assurance Nigeria Plc Secures N9 Billion Capital Raising to Strengthen Regulatory Compliance and Operational Capacity
Executive Summary
SUNU Assurance Nigeria Plc received shareholders’ approval to raise N9 billion in capital to meet the new minimum capital requirement (MCR) under the Nigerian Insurance Industry Reform Act (NIIRA) 2025. The increase is part of the company’s strategy to strengthen underwriting capacity, improve claim-paying ability, and position the firm for sustainable growth ahead of the July 30, 2026, compliance deadline.
The approved capital raising will be executed via rights issue, public offer, private placement, or strategic investment, subject to regulatory approval. The recapitalisation enhances financial flexibility, expands underwriting headroom, and strengthens market confidence.
The company projects Gross Premium Written of N9.24 billion, a 25.7% YoY increase, driven by both life and non-life insurance lines. Forecasted profit after tax is N891 million, supported by investment income, efficient reinsurance management, and operational discipline.
SUNU Assurance expects strong cash inflows from operating, investing, and financing activities, ending the period with N21.66 billion in cash and cash equivalents, reflecting a robust liquidity position to support strategic initiatives and future growth.
Strategic Insights
- Regulatory Compliance: Capital raising ensures NIIRA 2025 compliance, reducing regulatory risk.
- Operational Strengthening: Enhanced cash and capital base allow increased underwriting capacity.
- Market Confidence: Investors and policyholders benefit from improved solvency and claim-paying ability.
- Future Growth: Higher capital enables strategic expansion, increased market penetration, and product diversification.
Strengths
- Strong projected cash position of N21.66 billion.
- Strategic recapitalisation strengthens underwriting and investment capability.
- Diversified risk exposure with robust reinsurance support.
- Efficient management of operating expenses and claims.
Weaknesses
- Regulatory dependence: NIIRA 2025 compliance is mandatory for continued operations.
- Execution risk: Effective deployment of new capital critical to achieving forecasted growth.
- Market competition: Rising competition in non-life insurance sector may pressure margins.
Outlook – FY 2026
- Focus: Achieve regulatory compliance, strengthen underwriting capacity, and maintain operational efficiency.
- Revenue: Gross Premium Written expected to grow 25.7% YoY.
- Profitability: PAT of N891 million expected, supported by investments and disciplined underwriting.
- Cash Management: Maintain strong liquidity to support strategic initiatives and new product lines.
- Risks: Slow uptake of insurance products, market competition, and potential economic volatility.
Analyst View
“SUNU Assurance is taking a proactive approach to regulatory compliance and market competitiveness by raising N9 billion in capital. The company’s disciplined underwriting, investment strategy, and cash management position it well for sustainable growth. Meeting the NIIRA 2025 requirements will improve market confidence and create a platform for long-term profitability.”
Conclusion
SUNU Assurance Nigeria Plc is set to strengthen its financial capacity through a strategic capital raising, enhancing regulatory compliance, underwriting ability, and liquidity. Projected revenue growth, strong cash position, and robust profitability provide a solid foundation for long-term value creation and market competitiveness.
Subject: Sunu Assurances Nigeria Plc Projects N1.19bn Profit for H1 2025
Sunu Assurances Nigeria Plc has released its earnings forecast for the first half of 2025, projecting a profit after tax of N1.19 billion.
Key Highlights:
- Projected profit after tax: N1.19 billion
- Insurance revenue: N8.37 billion
- Insurance service expenses: N2.79 billion
- Net expenses from reinsurance contracts: N2.4 billion
- Pre-tax profit projection: N1.68 billion
- Total operating expenses: N2.05 billion
- Net cash flow from operating activities: N2.34 billion
- Cash and cash equivalents expected to rise to N14.08 billion by June 2025.
Subject: SUNU Assurances Plc Delivers Outstanding FY 2024 Results, Declares Dividend Amid Strong Growth
SUNU Assurances Nigeria Plc, a subsidiary of the SUNU Group, has delivered an impressive financial performance for the 2024 fiscal year, further establishing its credibility in the Nigerian insurance sector.
Key Highlights:
- Profit After Tax Hits N3.59 Billion SUNU posted a profit after tax of N3.59 billion, signaling strong operational efficiency and effective cost management.
- Claims Paid Rose by 57.8% In a clear demonstration of its commitment to policyholders, the company paid out N3.28 billion in claims, up significantly from N2.08 billion in 2023. This is particularly noteworthy given Nigeria’s challenging macroeconomic environment.
- Gross Written Premium Surged by 59.6% Gross Written Premium (GWP) grew to N13.03 billion in 2024, from N8.16 billion in 2023—an increase of N4.87 billion. This represents a 59.6% YoY growth and outperformed the company’s full-year budget of N10.16 billion by 128.3%.
- Dividend Declared At its 38th Annual General Meeting held in Lagos, shareholders approved a dividend of 10 kobo per 50 kobo share, payable on June 16, 2025, marking a direct reward for investors following a year of strong growth.
- Drivers of Growth Chairman Kyari Abba Bukar attributed the robust performance to:
- Higher business renewals, ensuring portfolio stability.
- Increased motor insurance premium rates, enhancing revenue in that segment.
- Expanded customer base, through growth in insured vehicles.
- Favourable forex movements, which positively impacted underwriting results.
- Strong Governance and Shareholder Engagement Managing Director/CEO Mr. Samuel Ogbodu emphasized the importance of shareholder engagement and the company’s commitment to transparency, corporate governance, and value creation. The AGM served as a platform to reinforce these principles.
Outlook
With a solid financial base, aggressive premium growth, and strong claims performance, SUNU Assurances is well-positioned for continued expansion and market leadership. The declared dividend not only reflects profitability but also management's confidence in sustaining performance into 2025 and beyond.
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