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Chuks Udo Okonta
Sovereign Trust Insurance Plc (Sovereign Trust and the Company) has once again proved to be a very resilient underwriting organisation that is determined to rise above board in the midst of so many obstacles, as its unaudited third quarter result made public on the Floor of The Nigerian Stock Exchange (NSE) revealed seven per cent growth in Profit Before Tax (PBT) in third quarter 2020.
A statement by the firm’s Deputy General manager/Head, Sales & Corporate Communications, Olusegun Bankole, noted that the Managing Director and Chief Executive Officer of the Company, Olaotan Soyinka said the result is a reflection of the realities of the times and that the Company is undaunted and will continue to remain focused in ensuring that the Company keeps up with its obligations as a very dynamic and responsive corporate entity.
The Company recorded a growth of seven per cent in its Profit Before Tax totaling N600m as against N560m recorded in the corresponding period in year 2019 while profit after tax also increased with the same seven per cent margin from N501m to N537m in the period under review in spite of the fact that gross premium written dipped by eight per cent from N9.1b in 2019 to N8.4b in 2020 third quarter.
One other very significant highlight of the 2020 Q3 unaudited result is the increase in the paid-up capital of Sovereign Trust from N4.1b in 2019 third quarter to N5.68b in third quarter of 2020 representing a 36 per cent growth rate in the paid-up capital of the company. What this also portends is that the Company has scaled through the first phase of the recapitalization process of the Insurance Industry as stipulated by the National Insurance Commission (NAICOM), which has set a terminal date of December 31, 2020 for the first phase of the recapitalization process. The Company’s Shareholders’ Funds also grew by 6.3 per cent in the period under review from N7.7b in September of 2019 to N8.2b in the corresponding period of 2020.
The Managing Director 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 as the Company remains focused on her strategic objective of accelerating the growth of the Company through asset base, revenue and profitability in the years ahead.