Sovereign Trust Insurance beats coronavirus impacts to report PBT growth of 7% in Q3

Despite the challenging operating environment occasioned by the global covid-19 pandemic, which has led to so many businesses grappling for survival including the Insurance Industry in 2020, Sovereign Trust Insurance Plc has once again proved to be a very resilient , posting a 7 percent growth in profit before tax.

Olaotan Soyinka, managing director/ceo of STI said the result is a reflection of the realities of the times and that the Company is undaunted and will continue to remain focused in ensuring that the Company keeps up with its obligations as a very dynamic and responsive corporate entity.

The Company recorded a growth of 7 percent in its Profit Before Tax totaling N600 million as against N560 million recorded in the corresponding period in year 2019, while profit after tax also increased with the same 7 percent margin from N501 million to N537 million in the period under review in spite of the fact that gross premium written dipped by 8 percent from N9.1 billion in 2019 to N8.4billion in 2020 third quarter.

One other very significant highlight of the 2020 Q3 unaudited result is the increase in the paid-up capital of Sovereign Trust from N4.1 billion in 2019 third quarter to N5.68 billion in third quarter of 2020 representing a 36 percent growth rate in the paid-up capital of the company.

What this also portends is that the Company has scaled through the first phase of the recapitalization process of the Insurance Industry as stipulated by the National Insurance Commission (NAICOM), which has set a terminal date of December 31, 2020 for the first phase of the recapitalization process. The Company’s Shareholders’ Funds also grew by 6.3 percent in the period under review from N7.7 billion in September of 2019 to N8.2 billion in the corresponding period of 2020.

Soyinka further stated that the Management of the Company is committed to meeting and surpassing the expectations and aspirations of its shareholders and stakeholders alike as the Company remains focused on her strategic objective of accelerating the growth of the Company through asset base, revenue and profitability in the years ahead.