Business

September 4, 2017

Sovereign Trust grows premium income by 64%

SOVEREIGN Trust Insurance Plc has grown its gross premium written to N6.1 billion for the second quarter of 2017.

The figure represents an increase of N2.4 billion and a growth rate of 64 per cent from N3.7 billion in the second quarter of 2016.

In a statement, the company said that net premium income grew from N2.3 billion in the second quarter of 2016 to N2.8 billion in the same period of 2017 amounting to a growth rate of 22 per cent.

The underwriting profit rose from N1.11 billion to N1.4 billion representing a growth rate of 2.7 per cent while investment income also grew by 73 per cent from N140 million in 2016 to N243 million in 2017 Q2.

The profit before tax grew by 57.5 per cent from N400 million in 2016 to N630 million in 2017 while profit after tax also grew from N373 million in 2016 to N588 million in 2017 representing a growth rate of 57.6 per cent.

Management expenses in the second quarter of 2017 was N713 million as against N762 million in the same period of 2016, representing a 6.4 per cent reduction rate.

The company noted that its 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 it forges ahead.

“The second quarter unaudited financial report clearly indicates that Sovereign Trust Insurance Plc is one organization to reckon with when it comes to insurance business   in Nigeria. This goes a long way to confirm the viability and profitability of the company,” the company stated.