Sovereign Trust Insurance profit before tax up 167%

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Despite the challenging economic environment that characterized operations of most businesses in the country in 2018 and also the seeming lull in the insurance sector, Sovereign Trust Insurance Plc was able to put up a brilliant performance in the year under review when compared with the company’s performance in 2017.

The company during the period recorded a 167 percent leap in profit before tax totaling N540 million as against N202 million recorded in 2017.

Olaotan Soyinka, managing director/CEO of the underwriting firm said the development is heart-warming, underscoring the level of work and commitment by board and management during the 2018 business year.

The Gross Premium written in 2018 stood at N10.5billion compared to the N8.5billion written in 2018, representing a 23 percent increase. Another outstanding highlight of the 2018 accounts which could be described as very encouraging is the rise in the company’s profit after tax to N344 million as against N157 million in 2017 representing 118 percent increase.

As the company grew its balance sheet in 2018, so did it also increase its claims payout? In 2018, a total of N4.2 billion was paid as claims against N1.9 billion that was paid in 2017.The net claims expense grew to N1.7 billion from N1.3 billion in 2017. This in a way underscores the company’s claims paying ability resulting in a 37 percent net claims expense.

The total assets also grew by a marginal 5 percent to N11.3 billion in 2018 from N10.8 billion in 2017.

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Soyinka while briefing newsmen in Lagos said the management of the company is really committed to meeting and surpassing the expectations and aspirations of its shareholders and stakeholders alike.

“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 while at the same time propel the company to a profitable height for shareholders’ delight”.

Modestus Anaesoronye

Modestus Anaesoronye is a leading Nigerian financial journalist with over two decades of experience reporting on the insurance and pension sectors across Nigeria and West Africa. He has held key editorial positions at major national media outlets, including The Comet, The Nation, and Financial Standard, and currently serves as a Senior Financial Analyst at BusinessDay Media Ltd. A widely travelled reporter, he has covered industry developments in more than 14 countries across Africa and Asia. Anaesoronye is a multiple award-winning journalist, honoured several times as Insurance Journalist of the Year and Pension Journalist of the Year by recognised industry bodies, including PensionScope and the Pension Fund Operators Association of Nigeria (PenOp), among others.