SUNU Assurances Forecasts N1.11bn Profit for H1

SUNU Assurances Nigeria Plc has projected a profit after tax of about N1.11 billion for the half-year period ending June 30, 2026, according to its earnings forecast released to the market.

The insurance firm expects to generate N8.48 billion in insurance revenue during the period, while insurance service expenses are projected at N3.67 billion. Net expenses from reinsurance contracts are estimated at N1.92 billion, bringing the company’s insurance service result to approximately N2.90 billion.

Further breakdown of the forecast indicates that investment income is expected to contribute N821.5 million, while net fair value gains on financial assets are projected at N26.8 million. The company also anticipates other operating income of N48.8 million and profit from concessionary arrangements of N15.9 million.

However, the insurer projects operating expenses of about N2.16 billion and an impairment loss of N64.14 million, which will moderate overall earnings.

Consequently, profit before tax is expected to settle at N1.59 billion, with an estimated tax charge of N477.8 million, resulting in the projected profit after tax of N1.11 billion for the period.

Meanwhile, the company’s cash flow forecast shows strong liquidity supported by premium inflows and financing activities.

SUNU Assurances expects to receive about N11.56 billion in premiums from policyholders, while commission payments are projected at N2.0 billion and reinsurance premiums paid at N4.78 billion. Direct claims payments are estimated at N1.67 billion.

Net cash generated from operating activities is forecast at N535.54 million.

Under investing activities, the company anticipates a net cash outflow of N4.16 billion, mainly due to investment purchases and fixed asset acquisitions.

However, financing activities are expected to strengthen liquidity, with N9 billion projected from share capital proceeds, bringing net cash inflow from financing activities to N9 billion.

Overall, the insurer forecasts a net increase in cash and cash equivalents of N5.37 billion, raising its total cash position from N11.41 billion at the beginning of the period to N16.78 billion by the end of June 2026.

The company’s closing cash balance is expected to comprise N523.1 million in cash and bank balances and N16.26 billion in short-term placements.