SUN Insurance Company Limited (SUN) has reported an unaudited net profit before tax of $3.74 million for the six months ending June 30, 2024. This marks a 49% increase compared to the same period last year, attributed to growth in gross premiums and investment income, as stated in their announcement at the South Pacific Stock Exchange (SPX), where the company was recently listed.
The retained profit stands at $14.315 million, down 18% from $17.5 million in 2023, largely due to a dividend payment of 4.64 cents per share during the reporting period. SUN’s chairman, Padam Lala, expressed satisfaction with the company’s robust financial performance for the first half of 2024.
“These results reflect the resilience of our business model and our capability to seize growth opportunities in the Fijian insurance market,” he stated. The company’s principal officer, Tarlochan Singh, highlighted that the strong financial outcomes were supported by a commitment to customer service, product innovation, and disciplined underwriting.
“We are dedicated to investing in our operations to meet the changing needs of our customers and to provide sustainable returns to our shareholders,” he added. As of June 30, 2024, net assets reached $55.048 million, a 69% increase from $32.56 million during the same timeframe last year, which was driven by new shares issued through a private placement prior to its Initial Public Offering (IPO) in May.
SUN was listed on the SPX in August, becoming the latest company to go public and bringing the total to 20 listed securities. The company’s shares quickly became among the most actively traded on the exchange, doubling in price within a month.
“We are also thrilled with our successful listing on the SPX, as it offers new capital sources and strengthens our presence in the Fijian economy,” Mr. Lala remarked. The shares were initially listed at $1.05 each on August 15, 2024, and within a month, the price rose to $2.10 per share, marking a 100% increase.
While SUN’s board is optimistic about the company’s future prospects, they are also aware of potential risks including rising claim costs, general inflation, the impending cyclone season, and cyber security threats. “Despite these challenges, the company is well-placed to take advantage of the ongoing growth in the Fijian economy and the rising demand for insurance products and services,” Mr. Lala concluded. At the time of publication, SUN shares were last traded at $2.10.