Sovereign Trust Insurance posts N6.1 bn Gross Premium in 2017 Half year
By Precious Chimezie
Sovereign Trust Insurance Plc has made an impressive half year performance going by its unaudited financial results as its total Gross premium written grew from N3.7b in the second quarter of 2016 to N6.1b representing an increase of N2.4b and a growth rate of 64% in the current financial year.
Likewise, the net premium income grew from N2.3b in the second quarter of 2016 to N2.8b in the same period of 2017 amounting to a growth rate of 22%.
The underwriting profit rose from N1.11b to N1.4b representing a growth rate of 2.7% while investment income also grew by 73% from N140m in 2016 to N243m in 2017 Q2.
The profit before tax had a growth rate of 57.5% having increased from N400m in 2016 to N630m in 2017 while profit after tax also grew from N373m in 2016 to N588m in 2017 representing a growth rate of 57.6%.
A very heartwarming development is the fact that the company’s Management Expenses still remained low like it was in the first quarter of the year. Management Expenses in the second quarter of 2017 was N713m as against N762m in the same period of 2016, representing a 6.4% reduction rate. Indeed, the Management Team is committed to reducing cost of operations as much as possible.
Interestingly, the company’s promise of wanting to create exceptional value for its numerous shareholders spread across the country and beyond is beginning to look very hopeful and one can only hold on to that glimmer of hope as the Underwriting Firm forges ahead. The second quarter unaudited financial report clearly indicates that Sovereign Trust Insurance Plc is one organization to reckon with when it comes toinsurance business in Nigeria. This goes a long way to confirm the viability and profitability of the company. No doubt, better days are here for this prolific Underwriting Organization.