Sovereign Trust Insurance posts 167% profit

From Ngozi Onyeakusi, Lagos

Despite the challenging economic environment that characterized operations of most businesses in the country in 2018 and the seeming lull in the insurance sector in the year, Sovereign Trust Insurance Plc has once again put up a brilliant performance for the 2018 financial year as its Profit Before Tax grew by 167 per cent totaling N540m as against N202m recorded in year 2017.
The Gross Premium written in 2018 stood at N10.5billion compared to the N8.5billion written in 2018, representing a 23% 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 N344m as against N157m in 2017 representing 118% increase.
As the company grew its balance sheet in 2018, so did it also increase its claims payout? In 2018, a total of N4.2b was paid as claims against N1.9b that was paid in 2017. The net claims expense grew to N1.7b from N1.3b in 2017.
This in a way underscores the company’s claims paying ability resulting in a 37% net claims expense. The total assets also grew by a marginal 5% to N11.3b in 2018 from N10.8b in 2017.
The Managing Director and Chief Executive Officer of the Underwriting Firm, Mr. Olaotan Soyinka said the development is a very heart-warming one considering the level of work that was put in place in 2018.
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”, he said.