Sovereign Trust Insurance Grosses N10.5bn, Pays N4.2bn Claims In 2018

Sovereign Trust Insurance (STI) has announced that the company in 2018 recorded Gross premium written of N10.5billion representing 23percent increase as against N8.5billion posted in the previous year.

This is just as the company attended to claims totaling N4.2billion in the year under review.

The chairman, Mr. Oluseun Ajayi disclosed at its 24th Annual General Meeting (AGM) held Thursday in Lagos that the company will be issuing a total of 4,170,411,648 ordinary shares to its existing shareholder’s as part of its program for capitalization.

He urged the shareholders to pick up their rights to have a successful program stating that the processes will be finalized by the third quarter of 2019.

On the new minimum wage bill, Ajayi in his optimism said that it will to a great extent increase demand and supply in the economy. “Insurance service is expected to benefit by the law in terms of premium generation as disposable income improves,” he said.

According to Ajayi, despite the challenging business environment in the year 2018, the company achieved steady revenue growth and continued its profit drive.

He averred that the net premium income equally grew by 31percent to N5.5billion as against the sum of N3.85billion recorded in the corresponding year; while profit before tax of N540million as against N202million recorded in year 2017 representing over 167percent.

“Profit after tax also stood at N344million, a 118percrnt increase when compared with the sum of N158million recorded in 2017, earnings per share improved by 118percent from 1.89k in 2017 to 4.13k in 2018.”

“The size and quality of our balance sheet improved by this performance for the year while our total assets rose from N20.8billion to N11.3billion representing 5percent increase, the shareholder’s fund increase by 6percent from N5.5billion in 207 to N5.8billion in 2018.

The Chairman also disclosed that in a bid to achieve the company’s plan of being amongst top 5 by 2022 (Program T522)  the company will introduce into the market a few bespoke products which will be affordable and deepen the retail end of the company’s product line.

He mentioned that Mr Niyi Odusi resigned his appointment as a member of the board on December 19,2018 while Col. Musa Shehu (Rtd), OFR and Ms. Omozusi Iredia would be retiring by rotation and are eligible for reappointment as non executive directors.