Sovereign Trust Insurance Grows PBT by 51.5% in 2019

Mr. Olaotan Soyinka

Managing Director/CEO

Sovereign Trust Insurance Plc

The National Insurance Commission, NAICOM has granted its approval to the 2019 audited accounts of Sovereign Trust Insurance Plc. This development is coming on the heels of the recent pandemic that has phenomenally affected the business environment globally with no exception to the Insurance Industry in Nigeria.

Despite the challenge, Sovereign Trust Insurance Plc (the Company) has once again put up a brilliant performance in the year under review when compared with the company’s performance in 2018.

The Managing Director and Chief Executive Officer of the Underwriting Firm, Mr. Olaotan Soyinka said the development is an encouraging one as he believes the company will continue to remain on the path of growth in the days ahead.

It is quite interesting to note that the Company recorded a significant growth of 51.5% in its Profit Before Tax totaling N819m as against N540m recorded in year 2018.  The Gross Premium Written in 2019 stood at N10.8billion compared to the N10.5billion written in 2018, representing a minimal 3.43% increase.

Another outstanding highlight of the 2019 accounts which could be described as remarkable is the rise in the Company’s Profit After Tax to N503m as against N344m in 2018 representing 46% increase.

As the Company grew its balance sheet in 2019, so did it also increase its claims payout.  In 2019, the net claims paid stood at N2.2billion as against N1.7billion that was paid in 2018. This in a way underscores the Company’s claims paying ability resulting in a 23.59% net claims expense.The total assets also grew by 18.5% to N13.4billion in 2019 from N11.3billion in 2018. The Shareholders’ Funds also rose from N5.8billion in 2018 to N7.7billion in 2019, culminating into a 33.7% increase.

The Managing Director while briefing newsmen in Lagos said the Management of the Company is committed to meeting and surpassing the expectations and aspirations of its shareholders and stakeholders alike as the industry gravitates towards another round of recapitalization.

“These performance levels are a confirmation of the management’s determination to effectively and strategically position the Company as one of the leading insurance companies in the country post-recapitalisation.”

 

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