Year end - financial statement for 2025

Sunu Assurances Nigeria Plc's unaudited interim Financial Statements at as 31 December, 2025 complies with the applicable legal requirements of the Nigerian Securities and Exchange Commission regarding interim financial statements. These financial statements contain extract of the unaudited financial statements prepared in accordance with IAS 34 'Interim Financial Reporting' its interpretation issued by the International Accounting Standards and adopted by the Financial Reporting Council of Nigeria. Due to rounding, numbers presented throughout this document may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.

We confirmed that SUNU Assurances Nigeria Plc has:

1. adopted a code of conduct regarding securities transactions by its directors on terms no less exacting than the required standard set out in the Financial Reporting Council of Nigeria (FRC), International Financial Reporting Standards (IFRS) and provisions of Rule 17.15(d) of the Listings Rules;

2. made specific enquiry of all directors and hereby confirm that its directors have complied with the required standard set out in the Listings Rules and in the Company's code of conduct regarding securities transactions by directors

   In line with the provisions of Rule 2.2 of the Rules Governing Free Float Requirements, the shareholding pattern of the Company is disclosed at page 4 of the unaudited Financial Statements for the period ended 31 December, 2025.

   We confirm that the Company's free float is in compliance with the Exchange's free float requirements for the Main Board on which the Company is listed

   1

   SUNU ASSURANCES NIGERIA PLC
   CONTENTS	PAGES
   Corporate information	3
   Summary of significant accounting policies	4
   Financial Statements: Statement of Financial Position	23
   Statement of Profit or Loss and Other Comprehensive Income	24 & 25
   Statement of Changes in Equity - Group	26
   Statement of Changes in Equity - Company	27
   Statement of Cash Flows	28
   Notes to the Statement of Profit or Loss and Other Comprehensive Income and the Statement of Financial Position	29
   Notes to Insurance Assets Disclosures :

   2

   SUNU ASSURANCES NIGERIA PLC AND ITS SUBSIDIARY COMPANIES CORPORATE INFORMATION BOARD OF DIRECTORS

   Mr Kyari Bukar - Chairman

   Mr Samuel Ogbodu - MD /CEO

   Ms Taizir Ajala - Vice Chairman Mr. Philippe Ayivor

   Mr. Mohammed Bah Mr Elie Ogounigni

   Mrs. Olajumoke Bakare Mrs. Abubakar Aisha

   COMPANY SECRETARY

   Taiwo Kuku

   Plot 1196, Bishop Oluwole street Victoria Island, Lagos

   REGISTERED OFFICE

   Sunu Place

   Plot 1196, Bishop Oluwole Street Victoria Island, Lagos

   RC No: - 65443 FRC Registration no: - FRC/2012/0000000000408 REGISTRARS AND TRANSFER OFFICE

   Crescent Registrars Limited ( formerly EDC Registrars Limited) 23 Olusoji Idowu Street

   Ilupeju Lagos

   BANKERS ACTUARIES

   Access Bank Plc Logic Professional Services

   Ecobank Nigeria Limited 4th floor, Oshopey Plaza

   First Bank of Nigeria Limited 17/19 Allen Avenue

   First City Monument Bank Ikeja, Lagos, Nigeria Fidelity Bank Plc

   Guaranty Trust Bank Plc Heritage Bank Plc

   Polaris Bank Plc EXTERNAL AUDITORS

   Sterling Bank Plc SIAO Partners

   Union Bank of Nigeria Plc 18b Olu Holloway Road

   United Bank for Africa Plc Ikoyi,

   Unity Bank Plc Lagos, Nigeria.

   Wema Bank Plc Zenith Bank Plc

   RE-INSURERS SOLICITORS

   WAICA Reinsurance Corporation TEMPLARS

   African Reinsurance Corporation 5th floor, The Octagon

   Continental Reinsurance Plc 13A AJ Marinho Drive

   Nigerian Reinsurance Corporation Victoria Island, Lagos

   3

   1. REPORTING ENTITY

      These financial statements are the consolidated financial statements of Sunu Assurances Nigeria Plc, a Company incorporated in Nigeria and its subsidiaries, namely EA Capital Management Limited and Sunu Health Nigeria Limited (formerly Managed Health Care Services Limited) (hereafter referred to as ' the Group').

      Sunu Assurances Nigeria Plc formerly Equity Assurance Plc (the Company) emerged as a result of the merger between Equity Indemnity Insurance Limited and First Assurance Plc. In the scheme of the merger arrangement, First Assurance Plc acquired the net assets of Equity Indemnity Insurance Limited and subsequently changed its name to Equity Assurance Plc.

      Sunu Assurances Nigeria Plc (the Company) was incorporated in Nigeria as a private limited liability Company, on 13 December 1984 to carry out non-life insurance business and was converted to a Public Liability Company in 1985.

      Sunu Assurances Nigeria Plc (the Company) has two subsidiaries namely: EA Capital Management Limited (wholly owned) which was incorporated on 29 October 2008 and Sunu Health Nigeria Limited (formerly Managed Health Care Services Limited )(67.3% owned) which was incorporated on 11 December 1997.

      The principal activities of Sunu Assurances Nigeria Plc and its subsidiaries are mainly the provision of non-life insurance, health management, assets management and hospitality services.

      The consolidated financial statements for the period ended December 31, 2025 were approved for issue by the Board of Directors on 20 January, 2026

   2. SHAREHOLDING PATTERN AS AT DECEMBER 31, 2025

      S/N	HOLDERS TYPE	No of Shareholders	% holding	No of holdings	% holdings
      1	Nigerian Shareholders	43,495	99.82	967,953,933	16.66
      2	Foreign Shareholders	78	0.18	4,842,846,067	83.34
      		43,573	100.00	5,810,800,000	100.00
      SHAREHOLDER STRUCTURE AS AT DECEMBER 31, 2025
      S/N	HOLDERS TYPE	No of Shareholders	% holding	No of holdings	% holdings
      1	Individual	42,805	98.24	594,583,717	10.23
      2	Corporate body	768	1.76	5,216,216,283	89.77
      		43,573	100.00	5,810,800,000	100.00

   3. BASIS OF PREPARATION

      1. GOING CONCERN

         The directors assess the group's future performance and financial position on a going concern basis and have no reason to believe that the group will not be a going concern in the year ahead.

      2. STATEMENT OF COMPLIANCE WITH IFRS

         These interim financial statements have been prepared in accordance with IAS 34.

      3. BASIS OF MEASUREMENT

         These consolidated and separate financial statements have been prepared on the historical cost basis except for the following:

         • Non-derivative financial instruments are measured at fair value through profit or loss.

         • At fair value through Other Comprehensive Income and at fair value through profit or loss financial assets are measured at fair value.

         • Investment property is measured at fair value.

         • Insurance liabilities measured at present value of future cashflows.

      4. USE OF SIGNIFICANT ESTIMATES, ASSUMPTIONS AND MANAGEMENT JUDGEMENT

         The presentation of the group's financial statements requires management to make estimates and judgement that affect the reported amount of assets and liabilities at the reporting date and the reported amount of income and expenses during the year ended.

         4

         The Group makes estimates and assumptions about the future that affect the reported amounts of assets, liabilities, income,expenses and equity. Estimates and judgments are continually re- evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Actual results may differ from these estimates.

         The effect of a change in an accounting estimate is recognized prospectively by including it in comprehensive income in the period of the change, if the change affects that period only; or in the period of the change and future periods, if the change affects both.

         Information about significant areas of estimation, uncertainty and critical judgements in applying accounting policies that have the most significant effect on the amounts recognized in the consolidated financial statements is included in Note 4 of the financial statements.

      5. FUNCTIONAL AND PRESENTATION CURRENCY

         Items included in the consolidated financial statement of each entity of the group are measured using the currency that best reflects the economic substance of the underlying events and circumstances relevant to that entity(" the functional currency"). These consolidated financial statements are presented in Nigerian Naira(N), which is the Company's functional currency. The financial information has been rounded to the nearest thousand , except as otherwise indicated.

      6. REGULATORY AUTHORITY AND FINANCIAL REPORTING

         The Company and its subsidiaries are regulated by the National Insurance Commission of Nigeria (NAICOM) under the Nigeria Insurance Act.

         Section 59 of the Financial Reporting Council Act , 2011 (FRC Act) provides that in matters of financial reporting, if there is any inconsistency between the FRC Act and other Acts which are listed in section 59(1) of the FRC Act, the FRC Act shall prevail. The Financial Reporting Council of Nigeria acting under the provision of the FRC Act has promulgated IFRS as the National financial reporting framework of Nigeria. Consequently, the provision of Section 20(1b) of the Insurance Act 2003 which conflicts with the provisions of IFRS have not been adopted.

      7. OFFSETTING

      Financial assets and liabilities are set off and the net amount presented in the statement of financial position when, and only when,the Group has a legal right to set off the amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously. Income and expenses are presented on a net basis only when permitted under IFRS, or for gains and losses arising from a group of similar transactions such as in the Group's trading activity.

      The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

      5

   4. SIGNIFICANT ACCOUNTING POLICIES

      Significant accounting policies are defined as those that are reflective of significant judgements and uncertainties and potentially give rise to different results under different assumptions and conditions.

      1. CONSOLIDATION

         1. Subsidiaries

            The financial statements of subsidiaries are consolidated from the date the Group acquires control, up to the date that such effective control ceases. For the purpose of these financial statements, subsidiaries are entities over which the Group, directly or indirectly, has power to govern the financial and operating policies so as to obtain benefits from their activities.

            Changes in the Group's interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions (transactions with owners). Any difference between the amount by which the non-controlling interest is adjusted and the fair value of the consideration paid or received is recognised directly in equity and attributed to the Group.

            Inter- company transactions, balances and unrealised gains on transactions between Companies within the Group are eliminated on consolidation. Unrealised losses are also eliminated in the same manner as unrealised gains, but only to the extent that there is no evidence of impairment. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group. Investment in subsidiaries in the separate financial statements of the Company entity is measured at cost.

            Acquistion - related costs are expensed as incurred.

            If the business combination is achieved in stages, fair value of the acquirer's previously held equity interest in the acquiree is re- measured to fair value at the acquisition date through profit or loss.

         2. Disposal of subsidiaries

            On loss of control, the Group derecognises the assets and liabilities of the subsidiary, any controlling interests and the other components of equity related to the subsidiary. Any surplus or deficit arising on the loss of control is recognised in profit or loss. If the Group retains any interest in the previous subsidiary, then such interest is measured at fair value at the date that control is lost. Subsequently, that retained interest is accounted for as an equity, accounted investment or as an available - for - sale financial asset depending on the level of influence retained.

            6

         3. Special purpose entities

         Special purpose entities that are created to accomplish a narrow and well- defined objective such as the securitisation of particular assets, or the execution of specific borrowings or lending transactions or the provision of certain benefits to employee.

         The financial statements of special purpose entities are included in the Group's consolidated financial statements, where the substance of the relationship is that the Group controls the special purpose entity.

      2. CASH AND CASH EQUIVALENTS

         Cash and cash equivalents include notes and coins on hand and highly liquid financial assets with original maturities of less than three months, which are subject to insignificant risk of changes in their fair value, and are used by the Group in the management of its short-term commitments. Cash and cash equivalents are carried at amortized cost in the statement of financial position.

      3. FINANCIAL ASSETS AND LIABILITIES

         1. Recognition

            The Group on the date of origination or purchase recognizes placements, equity securities and deposits at the fair value of consideration paid. Regular-way purchases and sales of financial assets are recognized on the settlement date. All other financial assets and liabilities, including derivatives, are initially recognized on the trade date at which the Company becomes a party to the contractual provisions of the instrument.

         2. Classification and Measurement

            Initial measurement of a financial asset or liability is at fair value plus transaction costs that are directly attributable to its purchase or issuance. For instruments measured at fair value through profit or loss, transaction costs are recognized immediately in profit or loss. Financial assets include placement with banks, treasury bills and equity instruments.

            Financial assets are classified into one of the following measurement categories:

            1. Amortised cost

            2. Fair Value through Other Comprehensive Income (FVOCI)

            3. Fair Value through Profit or Loss (FVTPL) for trading related assets

               The Group classifies all of its financial assets based on the business model for managing the assets and the asset's contractual cash flow characteristics.

         3. Business Model Assessment

            Business model assessment involves determining whether financial assets are managed in order to generate cash flows from collection of contractual cash flows, selling financial assets or both. The Group assesses business model at a portfolio level reflective of how groups of assets are managed together to achieve a particular business objective. For the assessment of business model the Group takes into consideration the following factors

            1. The stated policies and objectives for the portfolio and the operation of those policies in practice. In particular, whether management's strategy focuses on earning contractual interest revenue, maintaining a particular interest rate profile, matching the duration of the financial assets to the duration of the liabilities that are funding those assets or realizing cash flows through the sale of the assets

            2. How the performance of assets in a portfolio is evaluated and reported to Group heads and other key decision makers within the Company's business lines;

               7

            3. The risks that affect the performance of assets held within a business model and how those risks are managed;

            4. How compensation is determined for the Company's business lines' management that manages the assets;

            5. The frequency and volume of sales in prior periods and expectations about future sales activity.

               Management determines the classification of the financial instruments at initial recognition. The business model assessment fails under three categories:

               1. Business Model 1(BM1): Financial assets held with the sole objective to collect contractual cash flows;

               2. Business Model 2 (BM2): Financial assets held with the objective of both collecting contractual cashflows and setling; and

               3. Business Model 3 (BM3): Financial assets held with neither of the objectives mentioned in BM1 or BM2 above. These are basically financial assets held with the sole objective to trade and to realize fair value changes.

                  The Group may decide to sell financial instruments held under the BM1 category with the objective to collect contractual cash flows without necessarily changing its business model if one or more of the following conditions are met:

                  1. Where these sales are infrequent even if significant in value. A Sale of financial assets is considered infrequent if the sale is one-off during the Financial Year and/or occurs at most once during the quarter or at most three (3) times within the Financial Year.

                     The Group may decide to sell financial instruments held under the BM1 category with the objective to collect contractual cash flows without necessarily changing its business model if one or more of the following conditions are met:

                  2. Where these sales are insignificant in value both individually and in aggregate, even if frequent. A sale is considered insignificant if the portion of the financial assets sold is equal to or less than five (5) per cent of the carrying amount (book value) of the total assets within the business model.

                  3. When these sales are made close to the maturity of the financial assets and the proceeds from the sales approximates the collection of the remaining contractual cash flows. A sale is considered to be close to maturity if the financial assets have a tenor to maturity of not more than one (1) year and/or the remaining contractual cash flows expected from the financial asset do not exceed the cash flows from the sales by ten (10) per cent.

                     Other reasons: The following reasons outlined below may constitute 'Other Reasons' that may necessitate selling financial assets from the BM1 category that will not constitute a change in business model:

                     1. Selling the financial asset to realize cash to deal with unforeseen need for liquidity (infrequent).

                     2. Selling the financial asset to manage credit concentration risk (infrequent)

                     3. Selling the financial assets as a result of changes in tax laws (infrequent).

                     4. Other situations also depend upon the facts and circumstances which need to be judged by the management

         4. Cash flow characteristics assessment

            The contractual cash flow characteristics assessment involves assessing the contractual features of an instrument to determine if they give rise to cash flows that are consistent with a basic investment arrangement. Contractual cash flows are consistent with a basic deposit arrangement if they represent cash flows that are solely payments of principal and interest on the principal and interest on the principal amount outstanding (SPPI).

            8

            SUNU ASSURANCES NIGERIA PLC AND ITS SUBSIDIARY COMPANIES SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

            FOR THE PERIOD ENDED 31 DECEMBER, 2025

            Principal is defined as the fair value of the instrument at initial recognition. Principal may change over the life of the instruments due to repayments. Interest is defined as consideration for the time value of money and the credit risk associated with the principal amount outstanding and for other basic lending risks and costs (liquidity risk and administrative costs), as well as a profit margin.

            1. Financial assets measured at amortised cost

               Financial assets are measured at amortised cost if they are held within a business model whose objective is to hold for collection of contractual cash flows where those cash flows represent solely payments of principal and interest. After initial measurement, debt instruments in this category are carried at amortized cost using the effective interest rate method. The effective interest rate is the rate that discounts estimated future cash payments or receipts through the expected life of the financial asset to the gross carrying amount of a financial asset. Amortized cost is calculated taking into account any discount or premium on acquisition, transaction costs and fees that are an integral part of the effective interest rate. Amortization is included in Interest income in the Consolidated Statement of Income. Impairment on financial assets measured at amortized cost is calculated using the expected credit loss approach.

               Financial assets measured at amortized cost are presented net of the allowance for credit losses (ACL) in the statement of financial position

            2. Financial assets measured at FVOCI

               Financial assets are measured at FVOCI if they are held within a business model whose objective is to hold for collection of contractual cash flows and for selling financial assets, where the assets' cash flows represent payments that are solely payments of principal and interest. Subsequent to initial recognition, unrealized gains and losses on debt instruments measured at FVOCI are recorded in other comprehensive Income (OCI).

            3. Financial assets measured at FVTPL

               Financial assets measured at FVTPL include assets held for trading purposes, assets held as part of a portfolio managed on a fair value basis and assets whose cash flows do not represent payments that are solely payments of principal and interest. Financial assets may also be designated at FVTPL if by so doing eliminates or significantly reduces an accounting mismatch which would otherwise arise. These instruments are measured at fair value in the Consolidated Statement of Financial Position, with transaction costs recognized immediately in the Consolidated Statement of Income.

            4. Equity Instruments

               Equity instruments are measured at FVTPL, unless an election is made to designate them at FVOCI upon purchase. For equity instruments measured at FVTPL, changes in fair value are recognized in the Consolidated Statement of Income. The Company can elect to classify non-trading equity instruments at FVOCI. This election will be used for certain equity investments for strategic or longer term investment purposes. The FVOCI election is made upon initial recognition, on an instrument-by-instrument basis and once made is irrevocable. Gains and losses on these instruments including when derecognized/sold are recorded in OCI and are not subsequently reclassified to the Consolidated Statement of Income. Dividends received are recorded in Interest income in the Consolidated Statement of Income.Any transaction costs incurred upon purchase of the security are added to the cost basis of the security and are not reclassified to the Consolidated Statement of Income on sale of the security.

               Financial liabilities are classified into one of the following measurement categories:

               1. Amortised cost

               2. Fair Value through Profit or Loss (FVTPL)

                  9

            5. Financial Liabilities at fair value through profit or loss

               Financial liabilities accounted for at fair value through profit or loss fall into two categories: financial liabilities held for trading and financial liabilities designated at fair value through profit or loss on inception

               Financial liabilities at fair value through profit or loss are financial liabilities held for trading. A financial liability is classified as held for trading if it is incurred principally for the purpose of repurchasing it in the near term or if it is part of a portfolio of identified financial instruments that are managed together and for which there is evidence of a recent actual pattern of shortterm profit-taking. Derivatives are also categorized as held for trading unless they are designated and effective as hedging instruments. Financial liabilities held for trading also include obligations to deliver financial assets borrowed by a short seller. Gains and losses arising from changes in fair value of financial assets are included in the income statement and are reported as 'Net gains/(losses) on financial instruments classified as held for trading. Interest expenses on financial liabilities held for trading are included in 'Net interest income'.

               Financial Liabilities are designated at FVTPL when either the designation eliminates or significantly reduce an accounting mismatch which would otherwise arise or the financial liability contains one or more embedded derivatives which significantly modify the cash flows otherwise required. For liabilities designated at fair value through profit or loss, all changes in fair value are recognized in Non-interest income in the Consolidated Statement of Income, except for changes in fair value arising from changes in the Company's own credit risk which are recognized in OCI. Changes in fair value of liabilities due to changes in the Company's own credit risk, which are recognized in OCI, are not subsequently reclassified to the Consolidated Statement of Income upon derecognition/extinguishment of the liabilities

            6. Financial Liabilities at amortised cost

            Financial liabilities that are not classified at fair value through profit or loss fall into this category and are measured at amortised cost using the effective interest rate method. Financial liabilities measured at amortised cost are debt securities in issue for which the fair value option is not applied,convertible bonds and subordinated debts.

         5. Reclassifications

            Financial assets are not reclassified subsequent to their initial recognition, except in the period after the Group changes its business model for managing financial assets. A change in the Group's business model will occurs only when the Group either begins or ceases to perform an activity that is significant to its operations such as:

            • Significant internal restructuring or business combinations; for example an acquisition of a private asset management company that might necessitate transfer and sale of loans to willing buyers, this action will constitute changes in business model and subsequent reclassification of the Loan held from BM1 to BM2 Category

            • Disposal of a business line i.e. Disposal of a business segment

            Any other reason that might warrant a change in the Group's business model as determined by management based on facts and circumstances

            The following are not considered to be changes in the business model:

            (a) A change in intention related to particular financial assets (even in circumstances of significant changes in market conditions) (b A temporary disappearance of a particular market for financial assets.

            10

            (c ) A transfer of financial assets between parts of the Group with different business models.

            When reclassification occurs, the Group reclassifies all affected financial assets in accordance with the new business model. Reclassification is applied prospectively from the 'reclassification date'. Reclassification date is 'the first day of the first reporting period following the change in business model. For example, if the Group decides to shut down the retail business segment on 31st December 2018, the reclassification date will be 1 January, 2019 (i.e. the first day of the entity's next reporting period), the Group shall not engage in activities consistent with its former business model after 31st December, 2018. Gains, losses or interest previously recognised are not be restated when reclassification occurs.

         6. Impairment of Financial Assets

            In line with IFRS 9, the Group assesses the under listed financial instruments for impairment using Expected Credit Loss (ECL) approach:

            • Amortized cost financial assets; and

            • Debt securities classified as at FVOCI;

            Equity instruments and financial assets measured at FVTPL are not subjected to impairment under the standard.

         7. Write-off

         The Group writes off an impaired financial asset (and the related impairment allowance), either partially or in full, when there is no realistic prospect of recovery. After a full evaluation of a non-performing exposure, in the event that either one or all of the following conditions apply, such exposure shall be recommended for write-off (either partially or in full):

         • continued contact with the customer is impossible;

         • recovery cost is expected to be higher than the outstanding debt;

         • amount obtained from realisation of credit collateral security leaves a balance of the debt; or

         • it is reasonably determined that no further recovery on the facility is possible.

      4. REINSURANCE CONTRACT ASSETS

         Contracts entered into by the Group with reinsurers under which the Group is compensated for losses on one or more contracts issued by the Group and that meet the classification requirements for the insurance contracts in accounting policy in IFRS 4 are classified as reinsurance contracts held. Contract that do not meet these classification requirements are classified as financial assets. Insurance contracts entered in to by the Group under which the contract holder is another insurer (inwards reinsurance) are included with insurance contracts. Reinsurance assets consist of short-term balances due from reinsurers, as well as long term receivables that are dependent on the expected claims and benefits arising under the related reinsured insurance contracts. Amounts recoverable from or due to reinsurers are measured consistently with the amounts associated with the reinsured insurance contracts and in compliance with the terms of each reinsurance contract. Reinsurance liabilities are primarily premiums payable for reinsurance contracts and are recognised as an expense when due. The Group has the right to set-off re-insurance payables against amount due from re-insurance and brokers in line with the agreed arrangement between both parties.

         The Group assesses its reinsurance assets for impairment on a yearly basis. If there is objective evidence that the reinsurance asset is impaired, the Group reduces the carrying amount of the reinsurance asset to its recoverable amount and recognises that impairment loss in the income statement. The Group gathers the objective evidence that a reinsurance asset is impaired using the same process adopted for financial assets held at amortised cost. The impairment loss is calculated using the incurred loss model for these financial assets.

         11

         SUNU ASSURANCES NIGERIA PLC AND ITS SUBSIDIARY COMPANIES SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

         FOR THE PERIOD ENDED 31 DECEMBER, 2025

         (a) Receivables and Payables related to insurance contracts

         Receivables and payables are recognised when due. These include amounts due to and from agents, brokers and insurance contract holders. If there is objective evidence that the insurance receivable is impaired, the Group reduces the carrying amount of the insurance receivable accordingly and recognises that impairment loss in the income statement. The Group applied the simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance. To measure the expected credit losses, trade receivables have beeb grouped based on days overdue.

      5. PREPAYMENTS AND OTHER RECEIVABLES

         Other receivables are made up of prepayments and other amounts due from parties which are not directly linked to insurance or investment contracts, prepayments are carried at amortised cost.Other receivables are stated after deductions of amount considered bad or doubtful of recovery.When a debt is deemed not collectible,it is written-off against the related provision or directly to the profit and loss account to the extent not previously provided for.Any subsequent recovery of written-off debts is credited to the profit and loss account. Prepayments are carried at cost less amortisation and accumulated impairment losses

      6. INVESTMENT IN SUBSIDIARIES

         In the separate financial statements of Sunu Assurances Nigeria Plc, investments in subsidiaries is accounted for at cost.

      7. INVESTMENT PROPERTIES

         Properties that are held for long-term rental yields or for capital appreciation or both and that are insignificantly occupied by the entities in the consolidated group are classified as investment properties. These properties consist of office and residential buildings. The Group considers the owner-occupied portion as insignificant when it occupies less than 20 percent. In order to determine the percentage of the portions, the Group uses the size of the property measured in square metre.

         Recognition of investment properties takes place only when it is probable that the future economic benefits that are associated with the investment property will flow to the entity and the cost can be measured reliably.

         Investment properties are measured initially at cost, including transaction costs. The carrying amount includes the cost of replacing parts of an existing investment property at the time the cost was incurred if the recognition criteria are met and excludes the costs of day-to-day servicing of an investment property. Subsequent to initial recognition, investment properties are stated at fair value, which reflects market condition at the date of the consolidated statement of financial position.

         Gains or losses arising from the changes in the fair value of investment properties are included in the consolidated income statement in the year in which they arise. Subsequent expenditure is included in the assets carrying amount only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. All other repairs and maintenance costs are charged to the consolidated income statement during the financial period in which they are incurred. The fair value of investment property is based on the nature, location and condition of the specific asset.

         12

         Rent receivable is recognized in profit or loss and is spread on a straight-line basis over the period of the lease. Where lease incentive, such as a rent free period are given to a Lessee, the carrying value of the related investment property excludes any amount reported as a separate asset as a result of recognizing rental income on this basis.

      8. INTANGIBLE ASSETS

         1. Software

            Software acquired by the Group is stated at cost less accumulated amortization and accumulated impairment losses. Expenditure on internally developed software is recognized as an asset when the Group is able to demonstrate its intention and ability to complete the development and use the software in a manner that will generate future economic benefits and can reliably measure the costs to complete the development. Development costs previously expensed cannot be capitalized. The capitalized costs of internally developed software include all costs attributable to developing the software and capitalized borrowing costs and are amortized over its useful life. Subsequent expenditure on software assets is capitalized only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure is expensed as incurred. Amortization is recognized in profit or loss on a straight-line basis over the estimated useful life of the software, from the date that it is available for use since this most closely reflects the expected pattern of consumption of the future economic benefits embodied in the asset. The maximum useful life of software is five years.Amortization methods, useful lives and residual values are reviewed at each financial year end and adjusted if appropriate.

         2. Goodwill

            Goodwill represents the excess of the cost of an acquisition over the fair value of the net identifiable assets of the Company acquired at the date of acquisition. Goodwill is tested annually for impairment and carried as cost less accumulated impairment losses. Impairment losses in goodwill are not reversed.

         3. Amortization of investment in Equity Resort Hotel Limited

         The Company's investment in Equity Resort Hotel Limited will be written off over the concession period of 25 years and is tested annually for possible impairment. Profit/(loss) accruing to the Company from the operations of the Hotel will be taken into statement of profit or loss and other comprehensive income.

      9. PROPERTY, PLANT AND EQUIPMENT

         1. Recognition and measurement

            Property, plant and equipment are initially recorded at cost. Land and building are subsequently carried at revalued amount being the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are made with sufficient regularity such that the carrying amount does not differ materially from that which would be determined using fair value at the end of the reporting period.

            All other property, plant and equipment are stated at historical cost less depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the items. Any increase in assets carrying amount, as a result of revaluation is credited to other comprehensive income and accumulated in Revaluation Surplus within Revaluation reserves in equity. The increase is recognized in profit or loss to the extent that it reverses reduction decrease of the same asset previously recognised in profit or loss.

         2. Subsequent costs

            The cost of replacing part of an item of property or equipment is recognized in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to the Group and its cost can be measured reliably. The carrying amount of the replaced part is derecognized. The costs of the day-to-day servicing of property and equipment are recognized in profit or loss as incurred.

            13

         3. Depreciation

            Depreciation is recognized in Profit or Loss and is provided on a straight-line basis over the estimated useful life of the assets.Depreciation methods, estimated useful lives and residual values are reviewed annually and adjusted when necessary. The average useful lives per class of asset are as follows:

            Assets class Average useful life

            Land -

            Buildings 50 years

            Office equipment 5 years

            Motor Vehicles 5 years

            Furniture and fittings 5 years

            ICT equipment 5 years

            Billboard 5 years

         4. De-recognition

         An item of property and equipment is derecognized on disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on de-recognition of the asset which is calculated as the difference between the net disposal proceeds and the carrying amount of the asset is included in profit or loss in the year the asset is derecognized.

      10. LEASES

          Leases are accounted for in accordance with IFRS 16 and are accounted for in line with the following based on whether the Group is the Lessor or the Lessee:.

          1. When the Group is the Lessee

             At the commencement date, the Group recognises a right-of-use asset at cost and a lease liability, where applicable, at the present value of the lease payments that are not paid at that date. The cost of the right-of-use asset comprises the amount of the initial measurement of the lease liability, any lease payments made at or before the commencement date less any lease incentives received, any initial direct costs incurred by the lessee and an estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset, restoring the site on which it is located or restoring the underlying asset to the condition required by the terms and conditions of the lease.

             After the commencement date, the Group measures the right-of-use asset at cost less any accumulated depreciation and any accumulated impairment losses and adjusted for any remeasurement of the lease liability. The Group subsequently measures the lease liability by increasing the carrying amount to reflect interest on the lease liability, reducing the carrying amount to reflect the lease payments made and remeasuring the carrying amount to reflect any reassessment or lease modifications. The corresponding lease liabilities, where applicable, are included in other liabilities. The interest element of the lease liabilities is charged to the Income statement over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period.

          2. When the Group is the Lessor

          When assets are leased to a third party under finance lease terms, the present value of the lease income is recognised as a receivable. The difference between the gross receivable and the present value of the receivable is recognised as unearned finance income. Lease income is recognised over the term of the lease using the net investment method (before tax), which reflects a constant periodic rate of return.

      11. IMPAIRMENT OF NON- FINANCIAL ASSETS

          Non-financial assets are subject to impairment tests whenever events or changes in circumstances indicate that their carrying amount may not be fully recoverable. Where the carrying value of an asset exceeds its recoverable amount, which is the higher of value- in- use and fair value less costs to sell, the asset is written down accordingly.

          14

          For the purpose of assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessment of the time value of money and the risks specific to the asset.

          Where it is not possible to estimate the recoverable amount of an individual asset, the impairment test is carried out on the asset's cash-generating unit, which is the lowest group of assets in which the asset belongs for which there are separately identifiable cash flows. The Company has two cash-generating units for which impairment testing is performed. Impairment charges are included in profit or loss except to the extent they reverse gains previously recognized in other comprehensive income.

          Goodwill and intangible assets with indefinite useful lives will be tested for impairment annually, regardless of any indicators an impairment of goodwill will not be reversed.

      12. STATUTORY DEPOSIT

          In pursuant to Section 10(3) of the Insurance Act of Nigeria , 2003, every insurer is expected to deposit at least 10% of its paid up capital with the Central Bank of Nigeria(CBN). The Statutory deposit represents not less than the 10% of the paid up capital of the Company deposited with the Central Bank of Nigeria (CBN). Statutory deposit is measured at cost

      13. TRADE AND OTHER PAYABLES

          Trade and other payables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method. The fair value of a non-interest bearing liability is its discounted repayment amount. If the due date of the liability is less than one year discounting is omitted.

      14. BORROWINGS

          Borrowings are recognized initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortized cost; any difference between the proceeds(net of transaction costs) and the redemption value is recognized in the income statement over the period of the borrowings using the effective interest method. Fees paid on the establishment of loan facilities are recognized as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalized as a prepayment for liquidity services and amortized over the period of the facility to which it relates. Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liabilities for at least 12 months after the date of the statement of financial position.

      15. FAIR VALUE MEASUREMENT

          When an asset or liability , financial and non-financial is measured at fair value for recognition or disclosure purposes, the fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transactions between market participants at the measurement date and assumes that the transaction will take place either in the pricipal market or in the absence of a principal market in the most advantageous market. Fair value is measured using the assumptions that market participants would use when pricing the asset or liability assuming they act in their economic best interests. For nonfinancial assets, the fair value measurement is based on its highest and best use. Valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value are used maximising the use of relevant observable inputs and minimising the use of unobervable inputs.

          Assets and liabilities measured at fair value are classified into three levels using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. Classifications are reviewed at each reporting date and transfers between levels are determined based on a reassessment of the lowest level of input that is significant to the fair value measurement.

          For recurring and non-recurring fair value measurements, external valuers may be used when internal expertise is either not available or when the valuation is deemed to be significant, External Valuers are

          15

          selected based on market knowledge and reputation. Where there is significant change in fair value of an asset or liability from one period to another, an analysis is undertaken, which includes a verification of the major inputs applied in the latest valuation and a comparison, where applicable with external sources of data.

      16. INCOME TAX

          Income tax expense comprises current and deferred tax

          1. Current income tax

             Income tax payable is calculated on the basis of the applicable tax law in the respective jurisdiction and is recognized as an expense for the period except to the extent that current tax related to items that are charged or credited in other comprehensive income or directly to equity. In these circumstances, current tax is charged or credited to other comprehensive income or to equity.

          2. Deferred income tax

             Deferred income tax is provided using liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred income tax is determined using tax rates that have been enacted or substantially enacted by the date of the consolidated statement of financial position and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.

             The principal temporary differences arise from depreciation of property, plant and equipment, revaluation of certain financial assets and liabilities and in relation to acquisitions on the difference between the fair values of the net assets acquired and their tax base.

             However, deferred income tax is not recognized for:

             1. Temporary differences arising on the initial recognition of goodwill

             2. Temporary differences on the intial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss.

             3. Temporary differences related to investments in subsidiaries to the extent that it is probable that they will not reverse in the foreseeable future.

          Deferred tax assets are recognized when it is probable that future taxable profit will be available against which these temporary differences can be utilized.

          Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities against current tax assets, and they relate to taxes levied by the same tax authority on the same taxable entity or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realised simultaneously.

      17. SHARE CAPITAL AND PREMIUM

          Ordinary shares are classified as equity when there is no obligation to transfer cash or other assets. Incremental costs directly attributable to the issue of equity instruments are shown in equity as a deduction from the proceeds, net of tax. Share premium accounts for the amount the Company raises in excess of par value.

          16

          SUNU ASSURANCES NIGERIA PLC AND ITS SUBSIDIARY COMPANIES SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

          FOR THE PERIOD ENDED 31 DECEMBER, 2025

          1. TREASURY SHARES

             Where any member of the Group purchases the Company's equity share capital(treasury shares), the consideration paid, including any directly attributable costs (net of income taxes), is deducted from equity attributable to the Company's equity holders. Where such shares are subsequently sold, reissued or otherwise disposed off, any consideration received is included in equity attributable to the Company's equity holders, net of any directly attributable incremental transaction costs and the related income tax effects.

          2. DIVIDENDS

             Dividends on the company's ordinary share are recognized in equity in the period in which they are approved by the company's shareholders. Dividend distribution to the company's shareholders is recognised as a liability in the financial statements in the year which the dividend is approved by the company's shareholders.

      18. CONTINGENCY RESERVE

          Contingency reserve is credited at the higher of 3% of total premiums during the year and 20% of net profit per year, until it reaches the higher of the minimum paid up capital or 50% of net premium in accordance with Section 21 (2) of the Insurance Act 2003.

      19. ASSET REVALUATION RESERVES

          When the group's land and building are revalued by independent professional valuer, surpluses arising on the revaluation of these assets are credited to the asset revaluation reserve account. When assets previously revalued are disposed off, any revaluation surplus relating to the disposed assets is transferred to retained earnings.

      20. RETAINED EARNINGS

          This represents the amount available for dividend distribution to the equity shareholders of the Company.

      21. FOREIGN CURRENCY TRANSLATION

          1. Functional and presentation currency

             Items included in the financial statements of each of the Group's entities are measured using the currency of the primary economic environment in which the entity operates (the 'functional currency'). The consolidated financial statements are presented in Nigerian Naira (N), which is the Group's presentation currency.

          2. Transactions and balances

             Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the profit or loss.

             Foreign exchange gains and losses relating to borrowings and cash and cash equivalents are presented in the income statement within 'finance income or finance cost'. All other foreign exchange gains and losses are presented in the income statement within 'Other operating income' or ' Other operating expenses'.

          3. Foreign Operations

             The results and financial position of all the subsdiaries (none of which has the currency of a hyperinflationary economy) that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

             17

             1. Assets and liabilities for each statement of financial position presented are translated at the closing rate at the date of that consolidated statement of financial position.

             2. Income and expenses for each income statement are translated at average exchange rates (unless this average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the dates of the transactions.

          All resulting exchange differences are recognised in other comprehensive income.

          The group applies IAS 27- Consolidated and Separate Financial Statements in accounting for acquisitions of non-controlling interests. Under this accounting policy, acquisitions of non-controlling interests are accounted for as transactions with equity holders in their capacity as owners and therefore, no goodwill is recognized as a result of such transactions. The adjustments to non-controlling interests are based on the proportionate amount of the net assets of the subsidiary.

      22. REVENUE RECOGNITION

          Revenue comprises the fair value for services, net of value-added tax, after eliminating revenue within the Group. Revenue is recognized as follows:

          1. Rendering services: Revenue arising from asset management and other related services offered by the Group are recognised in the accounting period in which the services are rendered.

          2. Dividend income: Dividend income for available-for sale equities is recognised when the right to receive payment is established, this is the ex- dividend date for equity securities.

          3. Rent

             Rent revenue from investment properties is recognised on a straight line basis over the lease term. Lease incentives granted are recognised as part of the rental revenue. Contingent rentals are recognised as income in the period when earned.

          4. Other income: Other income is recognised when it is received or when the right to receive payment is establised.

          Recognition and Measurement of Insurance Contracts

   5. Key types of insurance contracts issued and reinsurance contracts held

      The Group issues Non-life insurance contracts to individual and businesses. The insurance contracts are accounted for in accordance with IFRS 17 Insurance Contracts. The Non-life insurance products offered include Bond, Oil & Gas, Engineering, Motor, Aviation, Marine, Fire and General Accident. These products offer protection of policyholder's assets and indemnification of other parties that have suffered damage as a result of a policyholder's accident.

      The Group accounts for these contracts applying the Premium Allocation Approach (PAA)

      The Group also holds reinsurance contracts to mitigate risk exposure. The reinsurance contracts comprises of

      facultative (excess of individual loss) reinsurance policies and quota share reinsurance contracts accounted for applying PAA.

      1. Definitions and classifications

         Products sold by the Group are classified as insurance contracts when the Group accepts significant insurance risk from a policyholder by agreeing to compensate the policyholder if a specified future event adversely affects the policyholder. This assessment is made on a contract-by-contract basis at the contract issue date. In making this assessment, the Group considers all its substantive rights and obligations, whether they arise from contract, law or regulation. The Group determines whether a contract contains significant insurance risk by assessing if an insured event could cause the Group to pay to the policyholder additional amount that are significant in any single scenario

         with commercial substance even if the insured event is extremely unlikely or the expected present value of the contingent cash flows is a small proportion of the expected present value of the remaining cash flows from the insurance contract.

         18

      2. Combining a set or series of contracts

         Sometimes, the Group enters into two or more contracts at the same time with the same or related counterparties to achieve an overall commercial effect. The Group accounts for such a set of contracts as a single insurance contract when this reflects the substance of the contracts. When making this assessment, the Group considers whether:The rights and obligations are different when looked at together compared to when looked at individually The Group is unable to measure one contract without considering the other

      3. Separating components from insurance and reinsurance contracts

         The Group assesses its insurance and reinsurance products to determine whether they contain components which must be accounted for under another IFRS rather than IFRS 17. After separation, an entity must apply IFRS 17 to all remaining components of the (host) insurance contract. Currently, the Group do not have products that require sepereations (distinct components).

      4. Recognition

         The Group recognizes groups of insurance contracts issued from the date when the first payment from policyholder in the group becomes due. As Sunu Asurances Nigeria Plc adheres to the statutory no premium no cover, the date premium in received from the policyholder will always be earlier or on the same date as the coverage period. This premiunm receipt date would then be used to separate the groups of insurance contracts into yearly cohorts. The contract groupings shall not be reassessed until they are derecognized.

      5. Contract Boundaries

         The Group includes in the measurement of a group of insurance contracts all the future cash flows within the boundary of each contract in the group. Cash flows are within the boundary of an insurance contract if they arise from substantive rights and obligations that exist during the reporting period in which the Group can compel the policyholder to pay the premiums, or in which the Group has a substantive obligation to provide the policyholder with insurance contract services . A substantive obligation to provide insurance contract services ends when :

         • The Group has the practical ability to reassess the risks of the particular policyholder and, as a result, can set a price or level of benefits that fully reflects those risks OR

         • Both of the following criteria are satisfied

         • The Group has the practical ability to reassess the risks of the particular policyholder and, as a result, can set a price or level of benefits that fully reflects the risk of that portfolio

         • The pricing of the premiums up to the date when the risks are reassessed does not take into account the risks that relate to periods after the reassessment date.

         A liability or asset relating to expected premiums or claims outside the boundary of the insurance contract are not recognized. Such amounts relate to future insurance contracts.

      6. Discount Rate

         The Group measures the time value of money using discount rates that reflect the liquidity characteristics of the insurance contracts and the characteristics of the cash flows, consistent with observable current market prices.

         In determining discount rates for cash flows, the Group uses the bottom-up approach to estimate discount rates starting from a risk-free rate with similar characteristics. Risk free rates are determined by reference to the yields of highly liquid FGN Bonds.

         Risk adjustment for non-financial risk

         The Group measures the compensation it would require for bearing the uncertainty about the amount and timing of cash flows arising from insurance contracts, other than financial risk, seperately as an adjustment for non-financial risk.

         For the purpose of 2023 AFS IFRS 17 closing valuation of Insurance Assets and Liabilities , the Group uses the quantile techniques approach in estimating the risk adjustment for non-financial risk. For future valuation, the Group intend to continue to use the quantile techniques approach in estimating our risk adjustment. As a non-life insurance company, most of our insurance policies expired within a twelve months calendar year.

   6. Premium Allocation Approach

      This is a simplification of the general model. The Group applies the PAA to the measurement of non-life insurance contracts with a coverage period of each contract in the group of one year or less.

      Contracts with coverage period above one year which are not immediately eligible for the PAA, will be subjected to a PAA eligibility by assessing the expected LRC cashflows under both the PAA and General Model approaches. However, there is no material difference in the measurement of the liability for remaining coverage between PAA and the Genral Model, therefore, these qualify for PAA.

      On initial recognition, the Group measures the carrying amount of the Liability for remaining coverage for insurance contracts held as the premiums received - Gross Written Premium. At subsequent measurement, the LRC is effectively the unearned premium reserve (UPR) under IFRS 4 less the deferred acquisition costs (DAC). Unlike IFRS 4, DAC will not be presented as an asset under IFRS 17. It is instead reflected in the overall insurance contract liability for remaining coverage, without being identified as a seperate component in the Statement of Financial Position.

   7. Premium Experience Adjustment

      Where premium experience adjustments relate to current/past service and are treated at the end of the period, this will be immediately recognized in the P&L as insurance revenue.

      Insurance acquisition cash flows

      IFRS 17 defines insurance acquisition cash flows as cash flows arising from the costs of selling, underwriting and starting a group of insurance contracts that are directly attributable to the portfolio of insurance contracts to which the group belongs. These include direct and indirect costs incurred in originating insurance contracts, including cashflows related to unsuccessful efforts to obtain new business.

      Under the PAA, an entity can choose to immediately expense insurance acquisition cash flows in the P&L , when incurred if and only if each insurance contract in a group has a coverage period of one year or less.

      19

   8. Onerous contracts

      The Group considers an insurance contract to be onerous if the expected fulfilment cash flows allocated to the contract, any previously recognized acquisition cash flows and any cash flows arising from the contract at the date of initial recognition in total result in a net cash outflow.

      On initial recognition, the onerous assessment is done on an individual contract level assessing future expected cash flows on a probability-weighted basis including a risk adjustment for nonfinancial risk. Contracts expected on initial recognition to be loss-making are group together and such groups are measured and presented seperately. once contracts are allocated to a group , they are not re-allocated to another group, unless they are substantively modified.

      On initial recognition, the CSM of the group of onerous contracts is nil and the group's measurement consists entirely of fulfilment cash flows. A net outflow expected from a group of contracts detemined to be onerous is considered to be the group's loss component. It is initially calculated when the group is first considered to be onerous and is recognized at that date in profit or loss. The amount of the group's loss component is tracked for the purposes of presentation and subsequent measurement.

      After the loss component is recognized, the Group allocates any subsequent changes in fulfilment cash flows of the LRC on a systematic basis between the loss component and the LRC excluding the loss component. For groups of onerous contracts, without direct participating features, the Group uses locked - in discount rates. They are determined at initial recognition to calculate the changes in the estimate of future cash flows relating to future service .

      For all issued contracts, other than those accounted for applying the PAA, the subsequent changes in the fulfilment cash flows of the LRC to be allocated are :

      • Changes in risk adjustment for non-financial risk recognized in profit or loss representing release from risk in the period

      • Estimates of the present value of future cash flows for claims and expenses related from the LRC because of incurred insurance service expenses in the period.

        For contracts that are measureed under PAA, the assumption is that there are no onerous contracts at initial recognition, unless facts and circumstances indicate otherwise. If the measurement of the LIC result in a loss-making group, this does not translate to the LRC being onerous. In this case, the group will be assessed as to whether its LRC will be similar to the incurred experience and hence considered to be onerous.

        If facts and circumstances indicate that a group of contracts is onerous during the coverage period, the onerous liability is calculated as the difference between :

      • the carrying amount of the liability for remaining coverage, and

      • the FCF that relates to remaining coverage similar to what is needed under the GMM

      This difference is recognized as a loss and shall increase the liability for remaining coverage.

   9. Measurement of Reinsurance Contracts Issued

      1. Recognition

         Proportional reinsurance contracts held will be first recognized on the later of the beginning of the coverage period of the reinsurance contract or the date that the first underlying insurance contract in the treaty is initially recognized.

         For example, if we enter a surplus engineering reinsurance contract on 1 January, 2022 and the first engineering insurance policy in the treaty is written in February 2022, then the date of recognition of the surplus reinsurance contract will be February 2022. Though the contract agreement is in place in January, cashflows on the contract do not start until February.

         Non-Proportionate reinsurance for example M&D, Fac and Liability Pool reinsurance coverage will be recognized at the beginning of the coverage period of the contract.

      2. Reinsurance contracts held measured under PAA

         All reinsurance contracts with contract boundaries not exceeding one year are automatically considered to meet PAA eligibility. Most of the Group's Surplus reinsurance contracts are immediately eligible for PAA as they are written on a clean-cut basis. At the end of the period, if there is change in reinsurer, the reinsurer will withdraw from the contract and the reinsurance held portfolio (including outstanding recoveries and ceded portion of unexpired premiums) is transferred to a new reinsurer.

         A smaller number of surplus reinsurance contracts and Facultative contracts are written on an underwriting year basis. This basis extends the contract boundary beyond one year as coverage of contracts ceded to the treaty may continue even after the underwriting year has ended

         For example, if an insurance contract incepted in April 2022 and ceded to the Fire Surplus reinsurance treaty ( which incepted 1 January, 2022), the contract boundary extends till April 2023 when the insurance contract will expire. So, the contract boundary for the reinsurance contract is beyond one year ie 1 Jan 2022 - 30 April 2023

         Where the reinsurance contracts held covers a group of onerous underlying insurance contracts, the Company adjusts the carrying amount of the asset for remaining coverage and recognizes a gain when, in the same period, it reports a loss on initial recognition of an onerous group of underlying insurance contracts or on addition of onerous underlying insurance contracts to a group. The recognition of this gain results in the recognition for the loss recovery component of the asset for the remaining coverage of a group of reinsurance contracts held.

      3. Modification and Derecognition

         The Group derecognizes the original contract and recognizes the modified contract as a new contract. If the terms of insurance contracts are modified and the following conditions are met:

         • If the modified terms were included at contract inception and the Group would have concluded that the modified contract Is outside of the scope of IFRS 17

           • Results in a different insurance contract due to separating components from the host contract

           • Results in a substantially different contract boundary

           • Would be included in a different group of contracts

         • The original contract was accounted for applying the PAA, but the modified contract no longer meets the PAA eligibility criteria for that approach

           If the contract modification meets any of the conditions, the Group performs all assessments applicable at initial recognition, derecognizes the original contract and recognizes the new modified contract as if it was entered for the first time.

           If the contract modification does not meet any of the conditions, the Group treats the effect of the modification as changes in the estimates of fulfilment cash flows. For insurance contracts accounted for applying the PAA, the Company adjusts insurance revenue prospectively from the time of the contract modification.

           The Company derecognizes an insurance contract when, and only when the contract is:

         • Extinquished ( when the obligation specified in the insurance contract expires or is discharged or cancelled)

         • Modified and the derecognition criteria are met

           When the Group derecognizes an insurance contract from within a group of contracts, it

         • Adjusts the fulfilment cash flows allocated to the group to eliminate the present value of the future cash flows and risk adjustment for non-financial risk relating to the rights and obligations that have been derecognized from the group

         • Adjust the CSM of the group for the change in the fulfilment cash flows (unless it relates to the increase or reversal of the loss component)

         • Adjusts the number of coverage units for expected remaining insurance contract services to reflect the coverage units derecognized from the group and recognizes in profit or loss in the period the amount of CSM based on that adjusted number.

         When the Group derecognizes an insurance contract due to modification, it derecognizes the original insurance contract and recognizes a new one. The Group adjusts the CSM of the group from which the modified contract has been derecognized for the difference between the change in the carrying amount of the group as a result of adjustment to fulfilment cash flows due to derecognition and the premium the Group would have charged had it entered into a contract with equivalent terms as the new contract at the date of the contract modification, less any additional premium actually charged for the mdification.

         20

         SUNU ASSURANCES NIGERIA PLC AND ITS SUBSIDIARY COMPANIES SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

         FOR THE PERIOD ENDED 31 DECEMBER, 2025

   10. Presentation

       The Group has presented separately in the consolidated statement of financial position the carrying amount of portfolio of insurance contracts that are assets and those that are liabilities and the portfolio of reinsurance contracts held that are assets and those that are liabilities

   11. Insurance Revenue

       When applying the PAA, the Group recognizes insurance revenue for the period based on the passage of time by allocating expected premium receipts including premium experience adjustments to each period of service

   12. Insurance service expenses

       Insurance service expenses arising from a group of insurance contracts issued comprises:

       • Changes in the LIC related to claims and expenses incurred in the period

       • Changes in the LIC related to claims and expenses incurred in prior period (related to past service)

       • Other directly attributable insurance service expenses incurred in the period

       • Amortization of insurance acquisition cash flows, which is recognized at the same amount in insurance service expenses

       • Loss component of onerous groups of contracts initially recognizes in the period

       • Changes in the LRC related to future service that do not adjust the CSM , because they are changes in the loss components of onerous groups of contracts

   13. Income or expenses from Reinsurance Contracts Held

       The Group presents income or expenses from a group of reinsurance contracts held in profit or loss for the period separately. Income or expenses from reinsurance contracts held are split into the following two amounts:

       • Amount recovered from reinsurers

       • An allocation of the premium paid

         The Group presents cash flows as a result of claims as part of the amount recovered from reinsurers. Ceding commission emanating from reinsurance ceded are presented as a deduction in the premiums to be paid to the reinsurer which is then allocated to profit or loss

         The Group establishes a loss recovery component of the asset for the remaining coverage for a group of reinsurance contracts held. This depicts the recovery of losses recognized on the initial recognition of an onerous group of underlying insurance contracts or on addition of onerous underlying insurance contracts to a group . The loss recovery component adjusts the CSM of the group of reinsurance contracts held. The loss recovery component is then adjusted to reflect:

       • Changes in the fulfilment cash flows of the underlying insurance contracts that ralate to future service and do not adjust the CSM of the respective groups to which the underlying insurance contracts belong to.

       • Reversals of loss recovery component to the extent those reversals are not changes in the fulfilment cash flows of the group of reinsurance contracts held

       • Allocations of the loss recovery component against the amounts recovered from reinsurers reported in line with the associated reinsured incurred claims or expenses

       When applying the PAA, the Group does not discount the liability for remaining coverage to reflect the time value of money and financial risk for non-life policies with a coverage period of one year or less. For those claims that the Group expects to be paid within one year or less from the date of incurrence, the Group does not adjust future cash flows for time value of money and the effects of financial risks. However, claims expected to take more than one year to settle are discounted applying the discount rate at the time the incurred claims is initially recognized.

       21

       SUNU ASSURANCES NIGERIA PLC AND ITS SUBSIDIARY COMPANIES SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

       FOR THE PERIOD ENDED 31 DECEMBER, 2025

   14. EMPLOYEE BENEFIT EXPENSES

       1. Defined contribution plans

          The Group operates a defined contributory pension scheme for eligible employees. Employees contribute 8% and the Group contribute 10% of the qualifying staff's salary in line with the provisions of the Pension Reform Act 2014. The Group pays contributions to pension fund administrator on a mandatory basis. The Group has no further payment obligations once the contributions have been paid. The contributions are recognised as employee benefits expense when they are due. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in the future payments is available.

       2. Short-term benefits

       Wages, salaries, paid annual leave and sick leave, bonuses and non-monetary benefits are recognised as employee benefit expense and accrued when the associated services are rendered by the employees of the Group.

   15. OTHER OPERATING EXPENSES

       Other expenses are expenses other than claims, investment expenses, employee benefit, expenses for marketing and administration and underwriting expenses. They include rents, professional fee, depreciation expenses and other non-operating expenses. Other operating expenses are accounted for on accrual basis and recognised in the income statement upon utilization of the service or at the date of their origin.

   16. INTEREST INCOME AND EXPENSES

       Interest income and expenses for all interest bearing financial instruments including financial instruments measured at fair value through profit or loss, are recognised within investment income and finance cost in the income statement using the effective interest rate method. When a receivable is impaired, the Group reduces the carrying amount to its recoverable amount, being the estimated future cash flow discounted at the original effective interest rate of the instrument, and continues unwinding the discount as interest income.

   17. EARNINGS PER SHARE

       The group presents basic earnings per share ( EPS ) data for its ordinary shares. Basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the company by the weighted average number of ordinary shares oustanding during the period excluding treasury shares held by the Group. Diluted EPS is determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted average number of ordinary shares outstanding for the effects of all dilutive potential ordinary shares.

   18. SEGMENT REPORTING

       An operating segment is a component of the Group that engages in business activities from which it can earn and incur expenses, including revenues and expenses that relate to transaction with any of the Group's other components, whose revenues and operating results are reviewed regularly by Executive Management to make decisions about the resources allocated to each segment and assess its performance, and for which discrete financial information is available.All costs that are directly traceable to the operating segments are allocated to the segment concerned while indirect costs are allocated based on the benefits derived from such costs.

   19. CONTINGENT LIABILITIES

Contingent liability is a possible obligation that arises from past events and whose existence will be confirmed only by the ocurrence or non-ocurrence of one or more uncertain future events not wholly within the control of the Group or the Group has a present obligation as a result of past events which is not recognised because it is not probable that an outflow of resources will be required to settle the obligation; or the amount cannot be reliably estimated. Contingent liabilities normally comprise of illegal claims under arbitration or court process in respect of which a liability is not likely to crystallise.

22

45

Cash and cash equivalents Financial assets

• At fair value through profit or loss

• At fair value through Other Comprehensive Income

• At Amortised cost

Trade receivables Reinsurance contract assets

Prepayments and other receivables

The financial statements were approved by the Board of Directors on January 20, 2026 and signed on its behalf by:

SUNU ASSURANCES NIGERIA PLC AND ITS SUBSIDIARY COMPANIES STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE PERIOD ENDED 31 DECEMBER, 2025

(IN THOUSAND OF NIGERIAN NAIRA UNLESS OTHERWISE STATED)

SUNU ASSURANCES NIGERIA PLC AND ITS SUBSIDIARY COMPANIES STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE PERIOD ENDED 31 DECEMBER, 2025

(IN THOUSAND OF NIGERIAN NAIRA UNLESS OTHERWISE STATED)

NOTES Company Company Company Company 12 Months ended 12 Months ended 3 Months ended 3 Months ended

SUNU ASSURANCES NIGERIA PLC AND ITS SUBSIDIARY COMPANIES STATEMENT OF CHANGES IN EQUITY

FOR THE PERIOD ENDED 31 DECEMBER, 2025 IN THOUSANDS OF NIGERIAN NAIRA

Group Share capital Share premium Bonus Issues Revaluation

Fair value

Contingency

Insurance

Retained

Total Non-

Total Equity

Group Share capital Share premium Revaluation reserves

Fair value

reserve

Contingenc y reserves

Insurance finance reserve

Retained Earnings

Total -Controlling inte Total Equity

1. CASH AND CASH EQUIVALENTS

   For the purpose of the cash flow statement, cash and cash equivalents comprise the following balances with original maturity of less than 90 days.

   	Group Dec 2025	Group Dec 2024	Company Dec 2025	Company Dec 2024
   Cash in hand	0	-	0	0
   Cash at bank	605,136	2,455,347	437,439	2,334,550
   Placements with financial institutions	11,530,549	9,486,847	10,971,048	9,372,083
   	12,135,685	11,942,194	11,408,487	11,706,633
   Less: Impairment on placements	(67,291)	(67,026)	(67,188)	(66,890)
   	12,068,394	11,875,168	11,341,299	11,639,742

   Deposits with banks earned interest at floating rates based on the daily rates. Cash and deposits are available for use in the company's day-to-day operations.

   Cash and bank overdrafts include the following for the purposes of the cash flow statement:

   Cash at bank and in hand	12,068,394	11,875,168	11,341,299	11,639,742
   Bank overdraft	-	-	-	-
   	12,068,394	11,875,168	11,341,299	11,639,742

2. FINANCIAL ASSETS

   The Group's financial assets are summarized below by measurement category in the table below:

   1. - At fair value through profit or loss Dec 2025 Dec 2024 Dec 2025 Dec 2024

Financial assets at fair value through profit or loss:

Quoted shares 178,137 154,036 116,899 75,654

Opening balance 154,036 131,983 75,654 59,902 Purchases during the period - - - -

Disposal during the period (17,145) - - -

Net fair value gain/(loss) 41,246 22,053 41,245 15,752

Closing balance 178,137 154,036 116,899 75,654

FGN Treasury bills 628,000 1,580,455 628,000 1,580,455

FGN Bonds - - - -

CBN Special bills - - - -628,000 1,580,455 628,000 1,580,455

Less: impairment (4) - (4) -

627,996 1,580,455 627,996 1,580,455

29