Sovereign Trust Insurance Increases Profit After Tax by 569 %
Ebere Nwoji
Sovereign Trust Insurance Plc, said it made a profit after tax (PAT) of N157million representing 569 percent increase on N23 million PAT it made in 2016.
Similarly, profit before tax (PBT) showed high level of improvement from N44 million in 2016 to N202 million in 2017 review year. This represents 351 percent increase.
Gross premium written of the company grew from N6.3 billion to N8.5 billion representing 33 percent increase.
Net claims expenses incurred by the company during the period under review showed improvement from N1.44 billion in 2016 to N1.3 billion in 2017.
Declaring these results at the 23rd annual general meeting of the company held in Lagos, Chairman, Oluseun Ajayi, Sovereign Trust Insurance Plc said the positive performance was achieved by the company in the midst of various challenges that characterised the industry during the year.
He said the company has built its operations on the drive to continue to uphold comprehensive growth strategy .
He said within the period, the return on capital employed recorded a positive performance of 1.87 percent as against 0.47 per cent achieved in the corresponding year of 2016.
Investment income of the company, according to Ajayi, rose from N286million in 2016 to N406 million in 2017, while total assets rose from N9.5 billion to N10.8 billion showjng 13.7 percent increase
Commenting on the result and raising shareholders’ hopes on better returns on their investments in the subsequent years, Ajayi said :”With this result, the resilience of our brand has once again been brought to the fore with proven capability to substantially increase our level of profitability. This performance could not have been achieved without the efforts of the unified Sovereign Trust team and our commitment to structured business strategies aimed at aggressive revenue generation and cost curtailment in the course of the year,” he said
On the future of the company, Ajayi said in preparing Sovereign Trust Insurance Plc for the challenges of the future, and in response to the ever revolving dynamics of the market place, the company has embarked on a five-year strategic journey.
According to him, the strategic blue print was conducted by KPMG, one of the leading consulting firms in the country.
He said part of the objective of the strategy will be to position the company as one of the top five insurance companies in the country by the year 2022.