Mr. Olaotan Soyinka
Managing Director/CEO
Sovereign Trust Insurance Plc
Sovereign Trust Insurance Plc has undoubtedly remained on the path of growth in the second quarter of 2021 going by the recent release of its unaudited account.
The second quarter performance shows that the underwriting firm is very much on course with meeting the aspirations of her various stakeholders in the days ahead.
The company generated total gross premium written of N7.8 billion compared with N6.03 billion recorded at the corresponding period of 2020, representing 30% growth rate. In like manner, the net premium income grew from N2.4 billion in the second quarter of 2020 to N2.8 billion in the same period of 2021 amounting to a growth rate of 16%.
A remarkable increase was also recorded in the Profit Before Tax of the company from N501 million in the second quarter of 2020 to N662 million in the corresponding period of 2021, with a 32% growth rate while Profit After Tax grew by 16% from N448 million in the second quarter of 2020 to N518 million in the second quarter of 2021.
Understandably, as the underwriting firm grew the portfolio of its business, it also recorded a slight increase in the claims payout in the second quarter of 2021 having paid a total sum of N1.8 billion compared to the sum of N1.4 billion that was paid as claims in the corresponding period of 2020, representing a 26% increase in claims payout.
This also underscores the company’s commitment to settling genuine claims as and when due. Net claims expense in the second quarter of 2021 grew by 9% to N1.074 billion compared to the net claims expense of N985 million in the second quarter of 2020.
The total equity of the company in the second quarter of 2021 also grew by 11% from N8.1billion in the corresponding period of 2020 to N9.059 billion in Q2 of 2021 while the Total Assets also increased from N13.1 billion in the second quarter of 2020 to N13.8 billion in the corresponding period of 2021 with a marginal growth rate of 5%.
Earnings per share rose from 3.95 kobo in the second quarter of 2020 to 4.57 kobo in the second quarter of 2021 while net assets per share also increased from 72 kobo in Q2 2020 to 79 kobo in the corresponding period of 2021.
