Leave a comment and share
Chuks Udo Okonta
Sovereign Trust Insurance Plc has again maintained a very impressive half year performance going by its unaudited financial results which was recently made available to the public by the underwriting firm.
A statement by its Head of Corporate Communications & Brand Management, Segun Bankole, noted that with a resolve to being one of the leading players in the Insurance Industry, the organization has again posted a positive financial performance in the second quarter of 2017 as it bettered its performance recorded in the same period of 2016.
He maintained that the the half year performance shows that the firm is right on track in delighting her shareholders and other stakeholders alike as the year and future of the company looks bright.
The total Gross premium written grew from N3.7 billion in the second quarter of 2016 to N6.1billion representing an increase of N2.4billion and a growth rate of 64 per cent in the current financial year. Likewise, the net premium income grew from N2.3 billion in the second quarter of 2016 to N2.8 billion in the same period of 2017 amounting to a growth rate of 22 per cent.
The underwriting profit rose from N1.11 billion to N1.4 billion representing a growth rate of 2.7 per cent while investment income also grew by 73 per cent from N140m in 2016 to N243million in 2017 Q2.
The profit before tax had a growth rate of 57.5 per cent having increased from N400million in 2016 to N630m in 2017 while profit after tax also grew from N373million in 2016 to N588million in 2017 representing a growth rate of 57.6 per cent.
A very heartwarming development is the fact that the company’s Management Expenses still remained low like it was in the first quarter of the year. Management Expenses in the second quarter of 2017 was N713million as against N762million in the same period of 2016, representing a 6.4 per cent reduction rate. Indeed, the Management Team is committed to reducing cost of operations as much as possible.
Interestingly, the company’s promise of wanting to create exceptional value for its numerous shareholders spread across the country and beyond is beginning to look very hopeful and one can only hold on to that glimmer of hope as the Underwriting Firm forges ahead. The second quarter unaudited financial report clearly indicates that Sovereign Trust Insurance Plc is one organization to reckon with when it comes toinsurance business in Nigeria. This goes a long way to confirm the viability and profitability of the company. No doubt, better days are here for this prolific Underwriting Organization.
