Banking & Finance Economy

SUNU Assurances declares N1.2bn profit

SUNU Assurances declares N1.2bn profit
Written by Maritime First

…As GLEIF reaffirms CSCS as sole local operating unit***

SUNU Assurances Nig. Plc has announced a 30 percent profit increase to N1.2 billion for the 2019 financial year.

The company recorded N914 million profit in the 2018 financial year.

L-R: Non-Executive Director, SUNU Assurances Nigeria Plc, Olanrewaju Ogunbanjo; Executive Director, Adeleke Hassan; Managing Director, Samuel Ogbodu; Company Secretary, John Akujieze; and Chief Finance Officer, Akeem Adamson during the AGM in Lagos.

Mr. Kyari Bukar, Chairman of SUNU Assurances, made the announcement during a physical and virtual 33rd Annual General Meeting of the company on Friday in Lagos.

Bukar said that the achievement largely resulted from a decrease in net claims, by 24 percent.

According to him, the company recorded an improved production in terms of gross written premium, with a 0.4 percent increase to N3.060 billion in 2019, from N3.049 billion in 2018.

Also, the company’s investment income grew to N719.52 million in 2019 from N519.57 million in 2018, according to Bukar.

Also Read: Nigeria stock market advances by N26bn

The chairman expressed satisfaction that in spite of numerous challenges facing the company, it was able to achieve a modest result in the 2019 financial year.

He listed the challenges to include
bond debt with its attendant huge finance cost and the National Insurance Commission (NAICOM) previous penalty on offshore transactions which would have a yearly payment of N86.6 million until 2021.

“During the year, we were able to increase significantly our processes through improved operating efficiency, optimising our current assets, and improving operating efficiency which is part of our strategy.

“We also seek to create further value by developing the opportunities embedded in our existing operations which present the most attractive options for growth.

“We are always looking beyond our current operations for sustainable growth opportunities.

“Going forward, we shall strive to operate our business with a sharp focus on efficiency, transparency and sustainable cost improvements,” he said.

According to him, the company has effected some changes e which include implementation of new operating procedures to strengthen internal capabilities and prevent leakages.

“I have no doubt that the future will bring many new opportunities and challenges, but we have learnt that, by focusing on running safe and efficient operations, maintaining our costs and managing our strategic objectives, we will continue to succeed,” he said.

Bukar also shed light on the new minimum paid-up capital of insurance companies by NAICOM.

He said: “The shareholders at its Extraordinary General Meeting (EGM) held in March 2020 unanimously approved the resolutions put forward for the recapitalisation of the company including but not limited to the cancellation of four existing ordinary shares out of every five ordinary shares held by members of the company.

“The total number of issued ordinary shares post the reconstruction exercise would be 2.8 billion ordinary shares while 11.2 billion ordinary shares were canceled and unissued.

“The company has obtained approvals for the completion of the share reconstruction exercise and conversion of the bond debt to equity.

“Similarly, the Federal High Court, Lagos sanctioned the company’s application for the confirmation of the reduction of the issued share capital of the company as required by Section 106 of CAMA.

“The final approval of Securities and Exchange Commission and the Nigeria Stock Exchange is currently being awaited to complete the exercise and credit the CSCS accounts of shareholders.”

Bukar hoped that by Dec. 31, 2020, SUNU Assurance would have satisfied the newly required minimum paid-up capital of N5 billion.

“In addition, conscious efforts would be made to achieve the required minimum paid-up capital of N1O billion by Sept. 30, 2021, through the Rights Issue exercise as approved by the shareholders at the last Extraordinary General Meeting.”

In another development, the Global Legal Entity Identifier Foundation (GLEIF) says the Central Securities Clearing System (CSCS) Plc is the sole Local Operating Unit (LOU) for Nigeria following its Annual Accreditation Verification (AAV).

Mr. Haruna Jalo-Waziri, Managing Director/ Chief Executive Officer, CSCS, made this known in a statement on Friday in Lagos.

GLEIF is the independent global body responsible for coordinating the issuance and management of Legal Entity Identifier (LEI).

The annual certification exercise, a thorough process instituted by GLEIF, is an assessment aimed at monitoring and accrediting the compliance and performance of all Louis globally.

Mr. Stephan Wolf, Chief Executive Officer of GLEIF, commended Nigeria’s capital market infrastructure for adherence to global standards in issuance, administration, and management of Lei, according to the statement.

“GLEIF reviewed the updated controls as documented by CSCS Nigeria and rescored the related sections.

” All sections passed the requirements. CSCS Nigeria has met the minimum requirements of the AAV process.

“GLEIF wishes to emphasise the importance of ensuring full compliance with all GLEIF requirements as a basic requirement for continued accreditation and the ability to issue LEIs,” the statement quoted Wolf as saying.

It added that the feat was a testament to CSCS’s continuous investments in systems and people toward ensuring global best practices in everything it did.

“I am pleased with the impressive operational review report on our LEI services and accompanying commendation from GLEIF, particularly as it reinforces our commitment to new initiatives targeted at deepening LEI penetration in Nigeria and broader African continent,” it said.

It called on all Nigerian corporates yet to enroll for LEI to take advantage of the seamless process and avoid probable exclusion from the global market.

It noted that regulators across the world increasingly advocated and legislated for LEI as a mandatory KYC requirement for cross-border transactions.

“As part of our initiatives to further attract foreign investors to the country, CSCS is democratising the issuance of International Securities Identification Number (ISIN) for all eligible securities, as this remains a notable prerequisite for most global fund managers to invest in an offshore financial asset,” it said.

It added that since the certification of CSCS as the LOU for Nigeria in 2013, CSCS had successfully upheld the gold standards of GLEIF and continued to deepen awareness and market penetration of LEI within Nigeria’s capital market and the broader financial services sector.

“As a critical infrastructure for the capital market, CSCS values its role in integrating Nigeria’s financial market into the global economy by supporting market participants in complying with global best practices in entity and securities identification.

“In response to the vast opportunities but inherent risks presented by the integration of global financial markets, GLEIF was established with the responsibility of issuing unique identities, known as LEI, to all companies which have or may have cross-border transactions.

“The LEI is an ISO 17442 standard, which consists of a 20-digit alphanumeric code, unique to each legal entity and is increasingly positioned as a key requirement for companies to participate in cross border transactions,” it added.

 

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