Sovereign Trust Insurance plc, said it grew its total comprehensive income for the year ended December 31st, 2016 from N19million in 2015 to N186million in 2016.
This is just as the company’s chairman Oluseun Ajayi, has observed that Nigeria’s growing population and untapped nature of insurance market are pointers to potential success of the industry.
Ajayi, who made the remarks at the 22nd annual general meeting of the company held in Lagos, said the expensive nature of Nigerian economy and growing population offer great opportunities to businesses in the country.
“The potential of the economy cannot be underestimated even in the face of renewed interest from international investors.”
All of these in addition to the low penetration rate of insurance market are pointers to great opportunities available in our country and industry”, he added.
He said that despite the harsh operating environment during the year, Sovereign Trust Insurance, grew its balance sheet size by 3.3 per cent from N9.2billion in 2015 to N9.5billion in 2016 and its investment income from N214million in 2015 to N281million in 2016 representing a 32 percent growth.”
According to Ajayi, 2016 was tough on business operators including the insurance industry especially on the not steady foreign exchange which affected the Naira and as a result the company recorded a downward shift in its profit and gross premium written.
Gross premium written of the company stood at N6.3billion as against N7.1billion in 2015, representing about 12 percent drop in revenue for the year under review.
He added: “As a result of the increase on our foreign currency exposure and the drop in the consumption of insurance by the hitherto insuring public, our profit for the year under review was greatly impacted. From a profit before tax of N454million in 2015, the figure dropped to N44.98million in 2016 while profit after tax was N23.59million from N557.85.”
He, however, noted that despite the challenges, the total comprehensive income for the year net of tax rose to N186million against N19million in 2015.