SUN Insurance Company Limited (SUN) 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, as stated by the company in its announcement at the South Pacific Stock Exchange (SPX), where it was recently listed.
The retained profit for the period was $14.315 million, down 18 percent from $17.5 million in 2023, largely due to a dividend payment of 4.64 cents per share made during this time. Chairman Padam Lala expressed satisfaction with the company’s robust financial results for the first half of 2024, noting, “These results demonstrate the resilience of our business model and our ability to capitalize on growth opportunities in the Fijian insurance market.”
Principal officer Tarlochan Singh highlighted that the financial strength was rooted in a commitment to customer service, product innovation, and disciplined underwriting. “We are committed to investing in our business to ensure that we continue to meet the evolving needs of our customers and deliver sustainable returns to our shareholders,” he said.
As of June 30, 2024, SUN’s net assets were reported at $55.048 million, a significant 69 percent increase from $32.56 million a year earlier. This growth is attributed to the issuance of new shares through private placement before its Initial Public Offering (IPO) in May. SUN listed on SPX in August, bringing the total number of listed securities to 20. Following its listing, it quickly became one of the most actively traded shares on SPX, experiencing a 100 percent rise in share price within a month.
“We are also pleased with the successful listing of the company on the SPX, which provides us with access to new sources of capital and enhances our profile in the Fijian economy,” Mr. Lala added. The company’s shares were first listed on SPX on August 15, 2024, at $1.05 per share. As of September 19, 2024, the share price rose to $2.10, indicating a 100 percent increase since listing.
While SUN’s board remains optimistic about its outlook for the remainder of the year, the directors are cautious of potential risks such as increasing claims costs, general inflationary pressures, the approaching cyclone season, and cybersecurity threats. Mr. Lala noted, “Notwithstanding the above, the company is well-positioned to benefit from the continued growth of the Fijian economy and the increasing demand for insurance products and services.”
As of the time of reporting, SUN shares were last traded at $2.10.