Sovereign Trust Insurance Plc has reported a growth in its profit before tax from N241m in 2016 Q1 to N488m in 2017 Q1, representing a growth rate of 102 per cent.
The insurer’s underwriting profit rose from N571m in 2016 to N746m in 2017 representing a 30 per cent growth rate, while investment income also grew by 12 per cent from N121m in 2016 to N135m in 2017 Q1, a statement showed.
The company said, “The year 2017 started on a very shaky note shrouded in uncertainty and a very bleak business outlook for some insurance companies, riding on the premise that some of them fell short of their expectations and aspirations in year 2016 as a result of the negative effects of the recession that characterised the Nigerian economy during the year.
“However, for Sovereign Trust Insurance, things are actually looking up considering the company’s first quarter performance in 2017. On a careful examination of the unaudited financial statements which was recently released by the organisation, one can only say that indeed, it has been a season of impressive performance.”
Its total gross premium written grew from N2.3bn in 2016 Q1 to N4.1bn in 2017 representing a 78 per cent growth rate, and its net premium income grew from N1.1bn in 2016 to N1.6bn in 2017, thus growing by 48 per cent.
The underwriting profit rose from N571m in 2016 to N746m in 2017 representing a 30 per cent growth rate, while investment income also grew by 12 per cent from N121m in 2016 to N135m in 2017 Q1.
The company’s management expenses reduced from N402m in 2017 Q1 to N369m in the same period of 2017. This was attributed to the management team’s commitment to reducing cost of operation as much as possible with the ultimate aim of delighting its shareholders.
“Notwithstanding the harsh operating environment of the first quarter of the year, Sovereign Trust Insurance has been able to record meaningful appreciation in all its financial indices going by its first quarter 2017 unaudited financial statements. The future indeed, looks very promising,” it added.
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