Sovereign Trust Insurance improves PAT by 37% in 2020
SOVEREIGN TRUST INSURANCE improved its profit after tax (PAT) for the fiscal year 2020, by 37 per cent, which amounted to N687 million compared to the amount recorded for the previous year.
This is contained in statement by the company on its 2020 audited financial statement made available on the local stock exchange.
The improvement was reto corded amid the challenging operating environment that characterized operations of most businesses in the country in 2020 as a result of the effect of the COVID-19 pandemic and the seeming lull in the insurance sector in the year.
“Sovereign Trust Insurance Plc has once again put up a commendable performance in the year under review when compared with the company’s performance in 2019,” the company said.
Its profit after tax rose from N503 million in 2019 to N687 million in 2020. The gross premium written in 2020 stood at N11.1 billion compared to the N10.8 billion written in 2019 which represents a marginal increase of 2 percent. There was a rise in the company’s total assets from N13.4 billion in 2020 representing 11 percent increase.
Similarly, the company grew its balance sheet in 2020 whilst also increasing its claims payout in the same year as a total of N3.48 billion was paid as claim, against N2.2 billion that was paid in 2019, underscoring the company’s claim paying ability coupled with the company’s renewed attention to delighting customers. The net premium income also grew by 10 percent from N5.9 billion to N6.5 billion in 2020.
Commenting on the firm’s performance, Olaotan Soyinka, the managing director and chief executive officer of the underwriting firm said the development is an encouraging one considering the level of work that was put in place in 2020.
“The management of the company is committed to meeting and surpassing the expectations and aspiration of its shareholders and stakeholders alike. These expectations levels are a confirmation of the management’s determination to effectively and strategically position the company as one of the leading insurance companies in the country while at the same time, propel the company to a profitable height for shareholders’ delight in the years ahead,” he said.