Sovereign Trust Insurance Achieves 64% Growth in Gross Premium in Half-Year 2017

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Ebere Nwoji

Sovereign Trust Insurance Plc, has announced 64per cent growth in its gross premium for the first half of 2017.
The company made this known in its unauditedfinancial statement released to the public recently.

Commenting on this, Assistant General Manager Corporate Communications and Brand Management of the company, Mr. Segun Bankole, said going by its performance in the first half of this year, Sovereign Trust Insurance has maintained positiveperformance as seen in the unaudited financial results .

He said the company, in its effort to emerge a leading player in the insurance industry,
has through the half year performance, shown that it is right on track in delighting her shareholders and other stakeholders alike as its year and future looks bright.

He announced other performances of the company during the period saying, “total gross premium written by the company grew from N3.7billion in the second quarter of 2016 to N6.1billion representing an increase of N2.4billion and a growth rate of 64percent in the current financial year.

Likewise, the net premium income grew from N2.3billion in the second quarter of 2016 to N2.8billion in the same period of 2017 amounting to a growth rate of 22 percent.

Underwriting profit, rose from N1.11billion to N1.4billion representing a growth rate of 2.7percent while investment income also grew by 73 percent from N140million in 2016 to N243million in 2017 quarter two.
He said profit before tax had a growth rate of 57.5 percent having increased from N400m in 2016 to N630million in 2017 while profit after tax also grew from N373million in 2016 to N588million in 2017 representing a growth rate of 57.6 percent.
According to Bankole, similarly, 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 dropped to N713million as against N762millionin the same period of 2016, representing a 6.4percent reduction rate. Indeed, the management team is committed to reducing cost of operations as much as possible”, he maintained.
Bankole, said with this result, the company’s promise 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 Plcis one organisation to reckon with when it comes to insurance 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 organisation,” he stated.