Sovereign Trust Insurance Records 569percent Growth in Profit

L-R: Company Secretary, Toyin Akano, Chairman, Oluseun Ajayi and Managing Director/CEO, Olaotan Soyinka all of Sovereign Trust Insurance Plc at the company’s 23rd Annual General Meeting in Lagos.

By LOVETH AZODO, Lagos

Sovereign Trust Insurance Plc has said that it’s profit after tax for the year ended December 31st, 2017 grew by N569 percent from N23million in 2016 to N157 million in 2017.

The company’s chairman, Mr. Olusegun Ajayi who disclosed these at the 23rd Annual General Meeting of the company held in Lagos, observed that the result brought the resilience of the company’s brand to the fore with proven capability to substantially increase its level of profitability.

He said in the midst of the various challenges that characterized the industry within the year, Sovereign Trust Insurance, recorded Gross premium written of 8.5billion representing a 33 percent increase as against N6. 3billion recorder in 2016.

The Net claims expenses in 2017, he said was N1. 3billion which is a N9. 5 percent improvement over the sum of N1. 44billion recorded in 2016, this improvement he attributed efficient claims management.

Ajayi also stated that the company recorded a profit before tax of N202 million in 2017 as against N44million recorder in 2016

Consequently, the return on capital employed (ROCE) recorded a positive performance of N1. 87percent as against 0.47percent achieved in the corresponding year of 2016, similarly the company’s Investment income rose by 41.6percent from 286million in 2016 to N406million in 2017.

In furtherance, Ajayi stated that the company’s total assets rose from N9. 5billion to 10.8billion representing 14.7percent increase

“The composition of our assets was well structured to position the company for better future performance.” He said

Ajayi who gave accolades to the company’s team said that the performance could not have been achieved without the efforts of the unified sovereign Trust team and their commitment to structure business strategies aimed at aggressive revenue generation and cost curtailment in the course of the year.

Speaking on Insurance Industry he said “from the positive point of view, the regulator and the industry operators made remarkable effort to achieve deeper penetration of insurance nationwide.”

On the 3-Tier-Based Minimum Solvency Capital (TBMSC), he stated “it is important to statour company’s resolve to adequately operate in the Tier-1 category with the plan of increasing our capital base both organically and inorganically before the commencement of the TBMSC”