SOVEREIGN TRUST INSURANCE PLC MAINTAINS IMPRESSIVE HALF YEAR PERFORMANCE…POSTS N630M PBT
By Nsikan Ikpe
Sovereign Trust Insurance Plc has again maintained a very impressive half year performance going by its unaudited financial results which was recently made available to the public by the underwriting firm.
With a resolve to being one of the leading players in the insurance industry, the organization has again posted a positive financial performance in the second quarter of 2017 as it bettered its earlier performance recorded in the same period of 2016.
The half year performance shows that Sovereign Trust Insurance Plc is right on track in delighting her shareholders and other stakeholders alike as the year and future of the company looks bright.
The 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%.
An equally 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 and also underscoring the fact that indeed, the management team is committed to reducing cost of operations across board.
Equally significant is the fact that 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 analysts expect that going forward the firm would continue to hold on to this glimmer of hope as the underwriting firm forges ahead.
All things considered then, the second quarter unaudited financial report clearly indicates that Sovereign Trust Insurance Plc is one organization to reckon with when it comes to the insurance business in Nigeria and this goes a long way to confirm the viability and profitability of the company. No doubt, better days are clearly here for this hard-fighting underwriting organization.