Underwriter pays N2 billion as claims to policyholders

Policyholders who subscribe to Sunu Assurances Nigeria Plc received N2.08 billion as claims in last year.The amount paid represented 87.1 per cent of the paid claims budget for the year, while claims paid in the review rose by N41.5 per cent from the N1.47 billion it settled in the 2022 financial year.

Likewise, net claims expenses increased to N1.45 billion in 2023 growing by 41.4 per cent from N1.21 billion in 2022. It represented a budget overrun of N213 million, above the N1.24 billion budgeted for the year.

The overrun was attributed to the impact of the implementation of IFRS 17 on insurance businesses. Speaking to shareholders at its 37th yearly general meeting in Lagos, the Chairman, Kyari Abba Bukar, commended the shareholders for keeping faith with the insurer over the years, seeking continuation of the support to take the underwriter to the top of its business in the industry.

He confirmed that the gross premium written (GPW) of the insurer rose to N8.16 billion in 2023 from N5.77 billion it was in 2022. The increase represented a growth of N2.39 billion in value and 41.3 in percentage term while the full-year budget of N6.7 billion was surpassed by 121.8 per cent.

Increased business proportion on renewals and the favourable impact of premium rates on Fire and Motor businesses, he said, were the major contributors to the increase in income even as the insurance revenue performance moved in the same direction as the GPW.