Sovereign Trust Insurance Plc (STI) has reported a significant improvement in profitability for the nine months ended September 30, 2026, with profit after tax rising approximately 296% to ₦1.015 billion, compared with ₦256.4 million in the corresponding period of 2025. Profit before tax also increased approximately 296% to ₦1.194 billion from ₦301.7 million.
The unaudited results reflect stronger earnings, improved insurance service performance, higher investment returns and a substantially strengthened balance sheet. The performance signals meaningful progress in the Company’s drive to build a resilient, competitive and growth-focused insurance business.
Q3 2026 PERFORMANCE AT A GLANCE
| Key indicator | Nine months to Sept. 2026 | Change vs. 2025 |
| Profit after tax | ₦1.015bn | +296% |
| Profit before tax | ₦1.194bn | +296% |
| Insurance service result | ₦1.853bn | +9% |
| Investment return* | ₦1.731bn | +26% |
| Total assets | ₦41.272bn | +69% |
| Total equity | ₦21.526bn | +50% |
| Cash and cash equivalents | ₦15.934bn | ₦5.063bn in 2025 |
PROFITABILITY BUILT ON IMPROVED INSURANCE SERVICE PERFORMANCE
A key feature of the period was the improvement in the Company’s core insurance service result, which increased by 9% to ₦1.853 billion from ₦1.707 billion in the corresponding period of 2025. This improvement was achieved even as reported insurance revenue moderated to ₦32.314 billion from ₦40.134 billion, underscoring the importance of stronger service-result contribution and disciplined management of insurance-related costs.
Insurance service expenses reduced to ₦14.349 billion from ₦18.307 billion, while net expenses from reinsurance contracts held declined to ₦16.112 billion from ₦20.119 billion. These movements supported the stronger insurance service result and point to progress in managing the cost and risk structure of the underwriting portfolio.
INVESTMENT RETURNS AND A STRONGER BALANCE SHEET
Investment return increased by 26% to ₦1.731 billion, compared with ₦1.377 billion in the prior-year period, providing an important additional contribution to earnings. Total assets expanded by 69% to ₦41.272 billion, while total equity rose by 50% to ₦21.526 billion.
Cash and cash equivalents stood at ₦15.934 billion at 30 September 2026, compared with ₦5.063 billion at 30 September 2025. Net cash flows from operating activities increased to ₦664.5 million from ₦175.8 million. The cash flow statement also reports proceeds of ₦5.022 billion from the issue of share capital during the period.
A DIVERSIFIED UNDERWRITING PORTFOLIO
The Company’s reported insurance revenue reflects activity across a broad range of non-life insurance classes, including Energy, Motor, Fire & Property, Marine, General Accident, Contractors’ All Risks & Engineering, Bond and Aviation. Energy contributed approximately ₦10.659 billion of reported insurance revenue, followed by Motor at ₦6.406 billion, Fire & Property at ₦5.174 billion and Marine at ₦3.205 billion. This spread across personal, commercial and specialist risk categories provides a platform for serving a wide range of customer protection needs.
POSITIONING FOR CUSTOMERS, PARTNERS AND INVESTORS
According to the Head, Corporate Communications & Corporate Planning, Mensah Simon, the Company’s improved earnings and expanded balance sheet reinforce its commitment to building a dependable insurance partner for individuals, businesses and institutions.
For brokers, agents and business partners, its diversified product capabilities and branch footprint provide opportunities to deepen relationships and deliver tailored risk-protection solutions.
For shareholders and the investment community, the substantial year-on-year improvement in profit, equity and asset base demonstrates positive financial momentum.
The Company remains focused on strengthening underwriting performance, growing quality business and sustaining prudent risk management. It will continue to pursue customer-centred service, operational effectiveness and long-term value creation.
