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 substantial 49% increase compared to the same period last year, largely driven by higher gross premiums and investment income, as announced at the South Pacific Stock Exchange (SPX) where the company was recently listed.
The retained profit for the period stood at $14.315 million, down 18% from last year’s $17.5 million, primarily due to a dividend payment of 4.64 cents per share during the reporting period.
Chairman Padam Lala expressed satisfaction with the company’s solid financial results for the first half of 2024, highlighting the resilience of their business model and their ability to seize growth opportunities in the Fijian insurance market.
Principal officer Tarlochan Singh noted that the strong financial performance stems from a commitment to customer service, product innovation, and disciplined underwriting. Singh reaffirmed the company’s dedication to investing in its business to accommodate the changing needs of customers and provide sustainable returns to shareholders.
As of June 30, 2024, net assets reached $55.048 million, representing a significant 69% increase from $32.56 million in the same period last year. This growth was attributed to the issuance of new shares via private placement earlier in the year, in advance of its Initial Public Offer (IPO) in May.
Since its listing in August, SUN has become one of the most actively traded companies on SPX, having doubled its share price within less than a month. The company’s shares were initially listed at $1.05 each on August 15, 2024, and have risen to $2.10 per share as of September 19, 2024.
While the board remains optimistic about the company’s future prospects, its directors also acknowledge potential risks, including rising claim costs, inflationary pressures, the upcoming cyclone season, and cybersecurity threats. Despite these challenges, Mr. Lala is confident that the company is well-positioned for continued growth in the Fijian economy and the increasing demand for insurance products and services.
At the time of reporting, SUN shares were last traded at $2.10.