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 figure marks a 49 percent increase compared to the same period last year, driven by growth in gross premiums and investment income, as per the company’s announcement at the South Pacific Stock Exchange, where it recently became listed.
Retained profit was reported at $14.315 million, a reduction of 18 percent from $17.5 million in 2023. This decrease is attributed to a dividend payout 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. He stated, “These results demonstrate the resilience of our business model and our ability to capitalize on growth opportunities in the Fijian insurance market.”
Tarlochan Singh, SUN’s principal officer, credited the strong performance to a commitment to customer service, product innovation, and careful underwriting practices. He emphasized the company’s dedication to investing in its operations to adapt to customer needs and ensure sustainable returns for shareholders.
As of June 30, 2024, net assets rose significantly to $55.048 million, a 69 percent increase from $32.56 million during the same period last year. This growth results from new shares issued through a private placement before its Initial Public Offer in May.
The company listed on the South Pacific Stock Exchange in August, increasing the number of listed securities to 20. It quickly became one of the most actively traded shares on the exchange, with its share price doubling within a month.
Lala expressed his excitement over the successful SPX listing, noting it provides access to new capital sources and enhances the company’s presence in the Fijian economy. The shares were initially priced at $1.05 each on August 15, 2024, and had risen to $2.10 by September 19, 2024.
While the board remains optimistic about future prospects, they are cautious of potential risks such as rising claims costs, inflationary pressures, the approaching cyclone season, and cybersecurity threats. Despite these concerns, Lala mentioned, “The company is well-positioned to benefit from the continued growth of the Fijian economy and the increasing demand for insurance products and services.”
When this article was published, SUN shares were trading at $2.10.