By Rosemary Onuoha
Sovereign Trust Insurance Plc has recorded 23 percent increase in Gross Premium Written (GPW) which rose to N10.5 billion for the year ended December 2018 from N8.5 billion recorded the previous year.
Disclosing this to shareholders at the company’s annual general meeting in Lagos, Chairman of the company, Mr. Oluseun Ajayi said that net premium income grew by 31 percent to N5.5 billion over N3.85 billion achieved in the previous year.
He said the company recorded a profit before tax of N540 million as against N202 million achieved in 2017 representing over 167 percent increase and profit after tax also stood at N344 million, a 118 percent increase from N158 million recorded the previous year.
He said the Return on Capital Employed (ROCE) recorded a positive performance of 2.9 percent as against 1.87 percent achieved in 2017 and the earnings per share improved by 118 percent to 4.13 kobo from 1.89 kobo.
Ajayi maintained that the firm’s balance sheet improved as the total assets rose from N10.8 billion in 2018 to N11.3 billion in 2017 representing five percent growth while shareholders’ fund increased by six percent to N5.8 billion from N5.5 billion.
He said the firm’s mandate to scale up its capital base is already at an advance stage, stressing that the program for recapitalisation will take off with the issuance of rights issue to existing shareholders of the company.
According to him, the company will be issuing a total of 4.17 billion ordinary shares to its shareholders, adding that the decision will be finalized by the third quarter of this year.