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Chuks Udo Okonta
Sovereign Trust Insurance Plc has once again put up a brilliant performance in the year 2018 when compared with the company’s performance in 2017, as its Gross Premium Written (GPW) in the year stood at N10.5billion compared to the N8.5billion written in previous year, representing a 23 per cent increase.
A statement by the company’s spokesperson, Segun Bankole, noted that the feat was achieved 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,
The Managing Director and Chief Executive Officer of the underwriting firm, Olaotan Soyinka, said the development is a very heart-warming one considering the level of work that was put in place in 2018.
It is quite interesting to note that the company recorded a phenomenal leap of 167 per cent in its Profit Before Tax (PBT) totaling N540 million as against N202 million recorded in year 2017. The Gross Premium Written (GPW) in 2018 stood at N10.5billion compared to the N8.5billion written in 2018, representing a 23 per cent 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 N157m in 2017 representing 118 per cent 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 per cent net claims expense. The total assets also grew by a marginal 5 per cent to N11.3 billion in 2018 from N10.8 billion in 2017.
The Managing Director 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.