SUNU Assurances Gets Regulatory Approvals on Share Reconstruction

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By Goddy Egene

The Chairman, SUNU Assurances Nigeria, Mr. Kyari Bukar, has said the company has obtained the approvals of National Insurance Commission (NAICOM), the Financial Reporting Council of Nigeria (FRCN) and the Corporate Affairs Commission (CAC) for the completion of the share reconstruction exercise and conversion of the bond debt to equity.

Shareholders of SUNU Assurances had last March approved the share reconstruction and the conversion of the bond debt to equity at an extra-ordinary general meeting (EGM).

Speaking at the 33rd annual general meeting (AGM) of the company in Lagos, Bukar also said the Federal High Court, Lagos Division, has sanctioned the company’s application for the confirmation of the reduction of the issued share capital of the company, noting that the final approval of Securities and Exchange Commission (SEC) and Nigerian Stock Exchange (NSE) is currently being awaited to complete the exercise and credit the CSCS accounts of shareholders.

“By December 31, 2020, SUNU Assurance would have satisfied the newly required minimum paid-up capital of N5billion. In addition, conscious efforts would be made to achieve the required minimum paid-up capital of N10 billion by September 30, 2021 through the rights issue exercise as approved by the shareholders at the last EGM,” he added.

Speaking on the financials of the company, the chairman said the company’s underwriting profit increased by 30 per cent from N914 million in the 2018 financial year to N1.2 billion in 2019.

In the same vein, the company’s investment income grew from N519.57 million in 2018 to N719.52 million in 2019, while it paid claims to the tune of N657.9 million in the year under review.

Bukar said: “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,” he said.

According to him, going forward, the company shall strive to operate its business with a sharp focus on efficiency, transparency and sustainable cost improvements. “To this end, the company had been through a period of change which included the implementation of new operating procedures to strengthen our 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 would continue to succeed,” he stated.