WorldStage– SUNU Assurances Nigeria PLC has released its earnings forecast for the full year ending December 31, 2026, projecting a profit after tax of ₦1.24 billion.
According to the forecast submitted to the Nigerian Exchange (NGX), the insurance provider expects top-line Insurance Revenue to hit ₦16.19 billion. The projection is backed by a estimated Gross Premium Written (GPW) of ₦17.07 billion, representing a 0.36% increase over ₦17 billion in 2025 and a 15.78% jump compared to the ₦14.74 billion projected for the period ending September 30, 2026.
Key Financial Highlights
Insurance Revenue: ₦16.19 billion
Insurance Service Expenses: (₦8.77 billion)
Net Expenses from Reinsurance Contracts: (₦3.31 billion)
Insurance Service Result: ₦4.11 billion
Investment Income: ₦1.89 billion
Operating Expenses: (₦4.51 billion)
Profit Before Tax: ₦1.50 billion
Profit After Tax: ₦1.24 billion
Operational and Investment Assumptions
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The insurer noted that gross claims incurred for the 2026 underwriting year were calculated using a three-year claims experience average, after accounting for reinsurance recoveries and salvage adjustments. Commission expenses are budgeted at 19.80% of Gross Premium Income, with maintenance expenses set at 3.56% of GPW. Accretion to the contingency reserve remains structured at 3% of GPW.
On investment activities, SUNU Assurances expects average yields of 13.9% on bank placements, 12.2% on Treasury Bills, and 21.2% per annum on statutory deposits held with the Central Bank of Nigeria.
Capital Boosting Cash Position
The cash flow projection reflects a significant expansion in liquidity, driven by a projected ₦9.33 billion equity capital increase. Cash and cash equivalents are expected to grow from ₦11.41 billion at the beginning of the year to ₦27.69 billion by December 31, 2026, substantially strengthening short-term placement holdings.
