SUN Insurance Company Limited (SUN) has announced an unaudited net profit before income tax of $3.74million for the six months ended June 30, 2024.
This represented a 49per cent increase from the same period last year and was attributed to increases in gross premiums and investment income, the company stated in its announcement at the South Pacific Stock Exchange (SPX) where it recently listed.
Retained profit stood at $14. 315m (2023: $17. 5m), an 18per cent reduction attributed to dividend payment of 4.64 cents a share during the reporting period.
SUN chairman Padam Lala said the board is pleased with the company’s strong financial performance for the first half of 2024.
“These results demonstrate the resilience of our business model and our ability to capitalize on growth opportunities in the Fijian insurance market,” he said.
SUN’s principal officer Tarlochan Singh said the strong financial performance was underpinned by a focus on 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.
Net assets stood at $55.048m as at June 30, 2024, a 69per cent increase from $32.56m during the same period last year.
The increase was due to the issuance of new shares through private placement earlier this year, prior to its Initial Public Offer (IPO) in May.
SUN listed in August, the latest company to go public on SPX, and its listing took to 20 the total number of listed securities.
It quickly became one with the most actively traded shares on SPX, gaining 100per cent on share price within less than a month.
“We are also delighted 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 said
“The company’s shares were initially listed on SPX on 15th August 15, 2024, at $1.05 per share.
“In a month since listing, the share price has increased to $2.10 per share (September 19, 2024), representing a 100per cent increase.”
While SUN’s board remained confident of its prospects for the rest of the year, its directors are also “wary of the potential risks including the rising cost of claims, general inflationary pressures, the upcoming cyclone session, and cyber security threats, amongst others.”
“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,” Mr Lala said.
SUN shares last traded at $2.10 when this edition went to press.