Sovereign Trust Insurance grows PBT by 66% in Q1
Sovereign Trust Insurance Plc has continued to show consistent rise in performance with another significant rise in first quarter 2021 Profit despite the challenging business environment.
The result further depicts that the Underwriting Firm is very much on course with meeting her projections for the year.
During the period under review, STI’S Gross premium written grew from N3.6 billion to N5.3 billion representing an increase of N1.7 billion and a growth rate of 46 percent in the current financial year. In like manner, the net premium income grew from N1.6 billion in the first quarter of 2020 to N1.9 billion in the same period of 2021 amounting to a growth rate of 18 percent.
A very significant leap was also recorded in the Profit Before Tax of the Company from N306 million in the first quarter of 2020 to N510 million in the corresponding period of 2021, with a 66 percent growth rate while Profit After Tax grew by 43 percent from N274 million in the first quarter of 2020 to N392 million in the first quarter of 2021.
Understandably, as the Underwriting Firm grew the portfolio of its business, it also recorded a slight increase in the claims payout in the first quarter of 2021 having paid a total sum of N1.2 billion compared to the sum of N1billion that was paid as claims in the corresponding period of 2020, representing a 17 percent increase in claims payout. This also underscores the Company’s commitment to settling genuine claims as and when due. Net Claims expense in the first quarter of 2021 grew by 8 percent to N965 million compared to the net claims expense of N896m in the first quarter of 2020.
The total equity of the Company in the first quarter of 2021 also grew by 12 percent from N8 billion in the corresponding period of 2020 to N9 billion in Q1 of 2021, while the Total Assets also increased from N13.4 billion in the first quarter of 2020 to N14 billion in the corresponding period of 2021 with a marginal growth rate of 5 percent.
Earnings per Share rose from 3.29 kobo in the first quarter of 2020 to 3.45 kobo in the first quarter of 2021 while net assets also increased from 71kobo in Q1 2020 to 79 kobo in the corresponding period of 2021.