Soyinka explains secret behind Sovereign Trust Insurance’s Profit surge
By Nsikan Ikpe
Managing Director of Sovereign Trust Insurance (STI) Plc, Mr Olaotan Soyinka has revealed that the central reason behind the firm’s continued string of good fortunes as manifested in its latest profit surge is the commitment and determination of management to meet and surpass the expectations and aspirations of shareholders and stakeholders alike.
Briefing newsmen in Lagos recently, the helmsman of one of the sturdily performing insurance players in a generally troubled economy and sector reiterated the continuing determination of the management team that he leads to continue to remain focused delivering on the set goals and tasks before them irrespective of what the headwinds were indicating.
“These performance levels are a confirmation of the management’s determination to effectively and strategically position the Company as one of the leading insurance companies in the country while at the same time, propel the Company to a profitable height for shareholders’ delight” in the years ahead.’ he affirmed.
Indeed, STI has consistently maintained its growth trajectory in spite of the challenging operating environment that characterized operations of most businesses in the country in 2021. With its current showing, the Company has once again put up a remarkable performance in the year under review when compared with its performance in 2020.
Commenting further on the showing, the Managing Director and Chief Executive Officer of the Underwriting Firm, said the development is indeed a commendable one considering the myriad of challenges that the insurance Industry had to deal with in the past year of 2021.
Among other details, it is notable that the Company recorded a leap of 42% in its Profit After Tax of N974m as against N687m recorded in year 2020. Profit Before Tax equally increased as well from N796m in 2020 to N885m in the year under review, representing an 11% growth rate. The Gross Premium Written in 2021 stood at N12.7b compared to the N11.1b written in 2020, representing an increase of 14%. Another interesting highlight of the 2021 accounts which could be described as heart-warming is the rise in the Company’s Total Assets from N14.8b to N16.3b in 2021 representing 11% increase.
As the Company grew its balance sheet in 2021, so did it also increase its claims payout. In 2021, a total of N3.7b was paid as claims against N2.9b that was paid in 2020. This in a way accentuates the Company’s claims paying ability coupled with the company’s renewed attention at delighting her customers. The net premium income also grew by 11% from N6.5b to N7.2b in 2021. Earnings per share also grew from N8kobo to 11.3kobo in 2021 while the Total Equity of the Underwriting Firm also grew by 11% from N8.6b in 2020 to N9.6b in 2021.
The Managing Director while briefing newsmen in Lagos said the management of the Company is committed to meeting and surpassing the expectations and aspirations of its shareholders and stakeholders alike. “These performance levels are a confirmation of the management’s determination to effectively and strategically position the Company as one of the leading insurance companies in the country while at the same time, propel the Company to a profitable height for shareholders’ delight” in the years ahead.
Olaotan Soyinka, CEO, Sovereign Trust Insurance Plc