Sovereign Trust Insurance grows Q2 profit by 32%

Sovereign Trust Insurance Plc remained on the path of growth in the second quarter (Q2) of 2021, generating a total gross premium written of N7.8billion compared with N6.03billion recorded in the corresponding period of 2020, representing 30 percent growth rate.

like manner, the net premium income grew from N2.4billion in the second quarter of 2020 to N2.8billion in the same period of 2021 amounting to a growth rate of 16 percent.

A remarkable increase was also recorded in the Profit Before Tax of the Company from N501million in the second quarter of 2020 to N662 million in the corresponding period of 2021, with a 32 percent growth rate while Profit After Tax grew by 16 percent from N448million in the second quarter of 2020 to N518million 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 N1.8billion compared to the sum of N1.4billion that was paid as claims in the corresponding period of 2020, representing a 26 percent 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 percent to N1.074billion compared to the net claims expense of N985million in the second quarter of 2020.

The total equity of the Company in the second quarter of 2021 also grew by 11 percent from N8.1billion in the corresponding period of 2020 to N9.059billion in Q2 of 2021 while the Total Assets also increased from N13.1billion in the second quarter of 2020 to N13.8billion in the corresponding period of 2021 with a marginal growth rate of 5 percent. Earnings per Share rose from 3.95kobo in the second quarter of 2020 to 4.57kobo in the second quarter of 2021 while net assets per share also increased from 72kobo in Q2 2020 to 79kobo in the corresponding period of 2021.