By Nsikan Ikpe
To put itself in a better position to tap the benefits inherent in the Nigerian economy, the insurance brokers, Sovereign Trust Insurance Plc has switched into a fundraising mode.
This is even as its management has announced the opening of the company’s Rights Issue for existing Shareholders.
The Rights Issue which commenced on Monday, June 24, 2019, will run through July 31, 2019. Under the scheme, the company is offering 4,170,411,648 (Four Billion, one hundred and seventy million, four hundred and eleven thousand, six hundred and forty-eight) ordinary shares of 0.50k each at 0.50k per share on the basis of one (1) new ordinary share for every two (2) ordinary shares of 0.50k each held as at the close of register on Tuesday, January 15, 2019.
In the same vein, the Management has enjoined all Shareholders of the company to take advantage of this unique opportunity by maximally taking up their rights in the Rights Issue with a view to increasing their stake in the company and as well grow their wealth in the very near future as the company is poised to moving on to the next phase of its growth stage.
Mr. Olaotan Soyinka, Managing Director/Chief Executive Officer of Sovereign Trust Insurance Plc, said the Management of the company has set a growth agenda which is aimed at positioning the underwriting firm as one of the top five in the insurance industry in Nigeria. The Managing Director’s appeal to Shareholders of the company was unequivocal. “In achieving this aspiration, we have identified that a very robust capital base is critical to the success of the set agenda; hence the need to call on our Shareholders to fully exercise their rights by subscribing fully to the Rights Issue and ultimately grow their investments in the company”. He said, Sovereign Trust Insurance Plc is working assiduously towards being one of the most preferred Insurance companies in the country for people to do business with, invest in as well as be the choice Employer of Labour.
Judging by the results of the performance of the company in the last financial year in 2018, it leaves no one in doubt that the company is set for the path of profitability. It is quite interesting to note that the company recorded a marked positive shift from what was recorded in the financial year of 2017 when compared to the 2018 financial year performance.
The company recorded a Gross Premium Written of N10.5billion representing a 23% increase over the N8.5billion recorded in 2017. The Net premium income equally grew by 31% to N5.5billion over the sum of N3.85billion recorded in the corresponding year.
In the same vein, the company recorded a Profit Before Tax of N540million as against N202million recorded in year 2017 representing over 167% increase. Profit after tax also stood at N344million, a 118% increase when compared with the sum of N158million recorded in 2017. Consequently, the Return on Capital Employed (ROCE) recorded a positive performance of 9.29% as against 1.87% achieved in the corresponding year of 2017. Similarly, the Earning per share improved by 118% from 1.89kobo in 2017 to 4.13kobo in 2018.
The company’s Total Assets rose from N10.8b to N11.3billion representing 5% increase while the shareholders’ fund increased by 6% from N5.5b in 2017 to N5.8b in 2018.
It will be recalled that the Nigerian Insurance sector has lately also been engaged in a recapitalisation exercise designed to shore up the capital base of players in the sector.
Mr. Olaotan Soyinka, MD/CEO, STI Plc