SUN Insurance Company Limited (SUN) has reported an unaudited net profit before income tax of $3.74 million for the six-month period ending June 30, 2024. This marks a 49 percent increase compared to the same timeframe last year, credited to rises in gross premium collections and investment income, as detailed in their announcement at the South Pacific Stock Exchange (SPX), where the company recently debuted.
The retained profit for the period reached $14.315 million, down from $17.5 million in 2023, representing an 18 percent decline, which the company attributes to a dividend payment of 4.64 cents per share during this reporting period.
Chairman Padam Lala expressed satisfaction with the company’s strong financial performance in the first half of 2024, stating, “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 robust financial results stemmed from a commitment to customer service, innovation in products, and disciplined underwriting practices. “We are dedicated to investing in our business to continuously meet our customers’ evolving needs and provide sustainable returns to our shareholders,” he noted.
As of June 30, 2024, the company’s net assets stood at $55.048 million, a significant 69 percent increase from $32.56 million during the same period last year. This growth is attributed to the issuance of new shares through a private placement earlier in the year, prior to its Initial Public Offer (IPO) in May.
SUN, which listed on the SPX in August, is the latest addition to the exchange, bringing the total number of listed securities to 20. The company quickly became one of the most actively traded shares on the SPX, with its share price doubling within less than a month.
Mr. Lala expressed confidence regarding the successful listing, noting that it provides access to new capital sources and enhances the company’s standing in the Fijian economy. The initial share price at listing on August 15, 2024, was set at $1.05, and as of September 19, 2024, the share price increased to $2.10, reflecting a 100 percent gain.
While the SUN board is optimistic about the company’s prospects for the remainder of the year, directors remain cautious about potential challenges such as escalating claims costs, inflationary pressures, the upcoming cyclone season, and cybersecurity risks. Mr. Lala concluded, “Despite these concerns, the company is well-positioned to take advantage of the ongoing growth of the Fijian economy and the rising demand for insurance products and services.”
As of the latest update, SUN shares were last traded at $2.10.