Nigeria: Sovereign Trust Insurance’s profit rises by 42%

Sovereign Trust Insurance Plc has consistently maintained its growth trajectory in spite of the challenging operating environment that characterized operations of most businesses in the country in 2021.

The Company has once again put up a remarkable performance in the year under review when compared with the Company’s performance in 2020.

Olaotan Soyinka, managing director/CEO said the development is indeed a commendable one considering the myriad of challenges that the insurance industry had to deal with in the past year of 2021.

The Company during the period recorded a leap of 42% in its Profit After Tax of N974 million as against N687 million recorded in 2020.

Profit Before Tax equally increased as well from N796 million in 2020 to N885 million in the year under review, representing an 11% growth rate.

The Gross Premium Written in 2021 stood at N12.7 billion compared to the N11.1 billion written in 2020, representing an increase of 14%.

Another highlight of the 2021 accounts, which the company described as heart-warming, is the rise in the Company’s Total Assets from N14.8 billion to N16.3 billion in 2021 representing 11% increase.

As the Company grew its balance sheet in 2021, so did it also increase its claims payout.

In 2021, a total of N3.7 billion was paid as claims against N2.9 billion that was paid in 2020. This in a way accentuates the Company’s claims-paying ability coupled with the company’s renewed attention to delighting her customers, the managing director said.

The net premium income also grew by 11% from N6.5 billion to N7.2 billion in 2021. Earnings per share also grew from N8kobo to 11.3kobo in 2021 while the Total Equity of the Underwriting Firm also grew by 11% from N8.6b in 2020 to N9.6b in 2021.

Soyinka while briefing newsmen in Lagos said the management of the Company is 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” in the years ahead.