Sovereign Trust Insurance Plc, one of the nation’s leading risk underwriting companies, has reported a Profit Before Tax (PBT) of N202 million in 2017, representing N158 million or 351% improved profit over the N44 million recorded in 2016.
The corporate underwriter’s Profit After Tax (PAT), also stood at N157 million in the year under review, indicating a 569 percent increase over the N23 million PAT recorded in 2016.
In addition, the financials of the e insurance company showed that its Gross Premium Written (GPW) rose to N8.5 billion in 2017, representing 33 percent growth over the N6.3 billion recorded in the preceding financial year.
Giving the details of the insurer’s operations and financials during the company’s Annual General Meeting (AGM) in Lagos, its Chairman, Oluseun Ajayi, hinted further that the company’s net claims expenses for 2017was N1.3 billion, which was a 9.5 percent improvement over the N1.44 billion recorded in 2016.
He reported to the shareholders that that Return on Capital Employed (RoCE) improved to 1.87 percent as against 0.47 percent recorded in the previous year and that the investment income rose by 41.6 percent from N286 million in 2016 to N406 million in the financial year in review.
This is even as he disclosed that total assets rose from N9.5 billion to N10 billion representing 13.7 per cent increase.
Based on the impressive financial results, the shareholders of the company commended the board and management of the company and urged them to consolidate on the performance in the years ahead.
In his comments at the AGM, one of the shareholders, Williams Adebayo, said that the approval given to the board and management of the companyto raise more capital was to enable the company become one of the top five insurance companies through optimal performance.
Adebayo, who is also the President of Greenish Shareholdes’ Association, called for extension of Tier-Based recapitalisation model newly evolved by National Insurance Commission (NAICOM) with a view to making more entities fulfil the funding requirements and by so doing, grow the sector.
