Underwriting firm, Sovereign Trust Insurance Plc has secured the approval of the National Insurance Commission (NAICOM) for 2019 audited accounts, recording a 51.5 percent growth in Profit Before Tax to N819 million, as against N540 million in 2018.
This is coming on the heels of the recent pandemic that has phenomenally affected business operations locally and globally, including ability to file their returns to regulators during the period of the lockdown and social distancing, as well as sundry business disruptions.
Despite this challenge, Sovereign Trust Insurance Plc (the Company) was able put up a brilliant performance in the year under review when compared with the company’s performance in 2018.
Olaotan Soyinka, managing director/CEO of the company 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.
The Gross Premium written in 2019 stood at N10.8billion compared to the N10.5billion written in 2018, representing a 3.43 percent increase.
The accounts further show that Profit After Tax rose to N503 million as against N344 million in 2018, representing 46 percnt 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 N1.7 billion that was paid in 2018. This in a way underscores the Company’s claims paying ability resulting in a 23.59 percent net claims expense.
The total assets also grew by 18.5 percent to N13.4billion in 2019 from N11.3billion in 2018. The Shareholders’ Funds also rose from N5.8 billion in 2018 to N7.7billion in 2019, culminating into a 33.7 percent increase.
Soyinka while briefing on the performance 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-recapitalization.