SUN Insurance Company Limited has reported an unaudited net profit before income tax of $3.74 million for the six months ending June 30, 2024. This marks a 49 percent increase compared to the same timeframe last year, driven by rising gross premiums and investment income, according to the company’s statement made during its recent listing at the South Pacific Stock Exchange (SPX).
The retained profit for the period was $14.315 million, a decline of 18 percent from $17.5 million in 2023, primarily attributed to a dividend payment of 4.64 cents per share during the reporting period. Chairman Padam Lala expressed satisfaction with the company’s robust financial results for the first half of 2024, highlighting the resilience of its business model and capacity to seize growth opportunities in the Fijian insurance sector.
Tarlochan Singh, SUN’s principal officer, emphasized that the strong performance is supported by a commitment to customer service, product innovation, and disciplined underwriting practices. He reaffirmed the company’s dedication to investing in its operations to adapt to the changing needs of customers and ensure sustainable returns for shareholders.
As of June 30, 2024, net assets totaled $55.048 million, reflecting a significant 69 percent increase from $32.56 million in the previous year. This growth is attributed to the issuance of new shares through a private placement preceding its Initial Public Offer (IPO) in May.
SUN entered the SPX in August, becoming the latest public company on the exchange, which now hosts a total of 20 listed securities. The company’s shares quickly became among the most actively traded, doubling in price within a month.
Lala noted the successful SPX listing has provided the company with new capital sources and enhanced its standing in the Fijian economy. The shares were initially offered at $1.05 and rose to $2.10 by September 19, 2024, representing a 100 percent increase.
While the board remains optimistic about future prospects, directors acknowledge potential risks such as rising claims costs, inflation, the upcoming cyclone season, and cyber security threats. Nonetheless, Lala asserted that the company is well-positioned to benefit from the ongoing growth in the Fijian economy and the increasing demand for insurance services. As of the latest update, SUN shares were trading at $2.10.