• SUNU Assurances Nigeria projects 45% drop in 2025 profit before tax
• Forex losses and rising reinsurance costs weigh on earnings outlook
• Gross premiums seen up 32.9% to 17.31 bln naira despite profit decline

SUNU Assurances Nigeria expects a sharp decline in profitability by the end of 2025. According to its projections, profit before tax will fall 45.47%, from 4.27 billion naira in 2024 to 2.33 billion naira ($1.55 million) in 2025.

The drop is mainly attributed to expected foreign exchange losses and a steep rise in net reinsurance costs, which are set to nearly double to 2.99 billion naira. Lower income from concessions, financial asset gains, and other operating revenue are also expected to contribute to the downturn.

The weaker earnings outlook comes as the insurer projects strong business growth, driven by a sharp rise in gross written premiums. SUNU Assurances forecasts premiums will climb 32.9% to 17.31 billion naira. Insurance revenue is expected to reach 16.41 billion naira, up from 15.27 billion in 2024.

Insurance service results are projected at 4.74 billion naira, showing continued operational strength in the group’s core business. Cash and cash equivalents are also expected to rise about 47% to 17.47 billion naira by the end of 2025.

These mixed projections contrast with the company’s 2024 ambition to leverage its positive momentum for sustainable growth in 2025 and beyond.