Olaotan Soyinka, Managing Director/Chief Executive Officer, STI Plc
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Chuks Udo Okonta
Sovereign Trust Insurance Plc said its total gross premium written grew from N2.3 billion in the first quarter of 2016 to N4.1 billion in 2017 representing a 78 per cent growth rate and the net premium income grew from N1.1 billion to N1.6 billion in 2017 amounting to a growth rate of 48 per cent.
A statement by the firm’s Head, Corporate Communications & Brand Management, Segun Bankole, said underwriting profit rose from N571 million in 2016 to N746 million in 2017 representing a 30 per cent growth rate while Investment income also grew by 12 per cent from N121 million in 2016 to N135 million in 2017 Q1, adding that the profit before tax grew considerably from N241 million in Q1 2016 to N488 million in the same Q1 in 2017 representing a growth rate of 102 per cent
Worthy of note, according to him, is the fact that the company’s management expenses reduced from N402 million in Q1 2017 to N369 million in the same period in 2017, stressing that the reduction can be attributed to the Management Team’s commitment to reducing cost of operation as much as possible with the ultimate aim of delighting its shareholders.
“No doubt, the year 2017 started on a very shaky note shrouded in uncertainty and a very bleak business outlook for some insurance companies, riding on the premise that some of them fell short of their expectations and aspirations in year 2016 as a result of the negative effects of the recession that characterized the Nigerian economy during the year.
However, for Sovereign Trust Insurance Plc, things are actually looking up considering the company’s first quarter performance in 2017. On a careful examination of the unaudited financial Statements which was recently released by the organization, one can only say that indeed, it has been a season of impressive performance,” he said.
He noted that notwithstanding the harsh operating environment that has beclouded the operations of so many insurance companies and other corporate organisations in the first quarter of the year especially at a period that the nation is still in recession, Sovereign Trust Insurance Plc has been able to record meaningful appreciation in all its financial indices going by its first quarter 2017 unaudited financial statements, stating that the future indeed, looks very promising.
